California Government Code 8869.86 – (a) Subject to any limitations on transferred private activity …
(a) Subject to any limitations on transferred private activity bond limit as may be provided in subdivision (d) of Section 8869.85, any state agency or local agency may utilize its private activity bond limit for any of the following:
(1) The issuance of private activity bonds.
Terms Used In California Government Code 8869.86
- Committee: means the California Debt Limit Allocation Committee established pursuant to Section 8869. See California Government Code 8869.82
- Internal Revenue Code: means the Internal Revenue Code of 1986 (26 U. See California Government Code 8869.82
- Issuer: means any local agency or state agency authorized by the Constitution or laws of the state to issue private activity bonds. See California Government Code 8869.82
- Local agency: means any political subdivision of the state within the meaning of Section 103 of the Internal Revenue Code (26 U. See California Government Code 8869.82
- Private activity bond: means a part or all of any bond, or other instrument, required to obtain a portion of the state's volume cap pursuant to Sections 142(k) and 146 of the Internal Revenue Code (26 U. See California Government Code 8869.82
- Private activity bond limit: means any portion of the state ceiling allocated or transferred to a state agency or local agency pursuant to this chapter. See California Government Code 8869.82
- State: means the State of California. See California Government Code 8869.82
- State agency: means the state and all state entities, including joint powers authorities of which the state or agency or instrumentality thereof is a member, empowered to issue private activity bonds, the interest on which is exempt from income tax under Section 103(a) of the Internal Revenue Code (26 U. See California Government Code 8869.82
- Subdivision: means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. See California Government Code 10
(2) If permitted by the committee, to make a carryforward election pursuant to Section 142(k) or Section 146(f) of the Internal Revenue Code.
(3) If permitted by the committee, to make a transfer to any state agency, local agency, or the committee.
(b) Prior to issuing any private activity bonds, the issuer shall, in the bond resolution or other similar action giving approval for the issuance of bonds, specifically designate to the bond issue a portion of the private activity bond limit available or expected to be available to that issuer. The designation shall be irrevocable upon the issuance of the bonds to the extent of the amount thereof.
(c) Each state agency and local agency shall notify the committee in writing, as directed by the committee, after any of the following:
(1) The issuance of any private activity bonds.
(2) Any action taken pursuant to subdivision (d) of Section 8869.85 to transfer any portion of its private activity bond limit.
(3) Any election to treat all or any portion of the state agency’s or local agency’s private activity bond limit as a carryforward pursuant to Section 142(k) or Section 146(f) of the Internal Revenue Code. The committee shall keep the notices in its records for a period no less than the term of all private activity bonds issued as described in the notices.
(Amended by Stats. 2015, Ch. 277, Sec. 5. (AB 1195) Effective January 1, 2016.)