SB 1061 — Private activity bonds; updates notice requirements for public hearings.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2023 SESSION CHAPTER E130 An Act to amend and reenact §§ 2.2-2292, 15.2-4906, 15.2-4907, and 36-29 of the Code of Virginia, relating to private activity bonds;

R O [S 1061] Approved LMarch L21, 2023 Be it enacted by the General Assembly of Virginia:

That §§ 2.2-2292, 15.2-4906, 15.2-4907, and 36-29 of the Code of Virginia are amended and E reenacted as follows:

D Whenever federal law requires public hearings and public approval as a prerequisite to obtaining federal tax exemption for the interest paid on private activity bonds under Section § 147(f)2.2-2292. of the Internal Revenue Code, unless otherwise specified by federal law or regulation, the public hearing for private activity bonds of the Authority shall be conducted by the Authority and the procedure for the public hearing and public approvals shall be as follows:

1.Public hearing and approval.

Whenever federal law requires public hearings and public approval as a prerequisite to obtaining federal tax exemption for the interest paid on private activity bonds under Section § 147(f) of the Internal Revenue Code, unless otherwise specified by federal law or regulation, the public hearing for public hearing and public approvals shall be as follows:ed by the Authority and the procedure for the 1.

Notice of the hearing shall be published once a week for two successive weeks not less thBnthan seven days in advance of such hearing in a newspaper published or having general circulation in the 0municipality locality in which the facility to be financed is to be located of intention to provide financing for a named applicant.

The notice s1allshall also be mailed or otherwise delivered to the clerk of the local governing body of the municipality.

(iii) the maximum dollar amount of thefinancing facilitysought; to be financed.

and (iv) the type of business and purpose and specific location, if known, c.of the facility to be financed.

c.

$_____ $_____imatedEstimated taxable value of the facility's real property in the municipality in which it is located.

$_____ Estimated taxable value of the facility's real property once constructed or expanded.

$_____ Estimated dollar value per year of goods and services that will be purchased in the Commonwealth during construction or expansion of facility.

$_____ices$_____ that will be purchased in the Commonwealth Estimated dollar value per year of goods and services that will be purchased in the Commonwealth for the operation of the facility.

$_____ Estimated payroll for labor during construction or expansion of the facility.

of 3 2.

of 3 § 15.2-4906.

Estimated taxable value of the facility's real property to be con$_____edconstructed ini$_____locality the locality 3.

Estimated merchants' capital tax per year using present tax rates$_____rates $_____ 6.

Estimated dollar value per year of goods that will be purchase$_____purchased Virginiafrom Vir$_____ companies within the locality b.

Estimated dollar value per year of goods that will be purchased$_____non-Virginiapurchased from non-$_____ia companies within the locality c.

Estimated dollar value per year of services that will be purcha$_____ompurchased Virginiafrom companiesV$_____a withincod. the locality d.

Estimated dollar value per year of services that will be purcha$_____ompurchased non-Virginiafrom n$_____ginia companies within the locality 7.

Average annual salary per employee $_____ Signature ________________________________________ Authority Chairman ________________________________________ Name of Authority of 3 If one or more of the above questions do not apply to the facility indicate by writing N/A (not applicable) on the appropriate line.

EThe provisions of this section shall not apply to bonds, notes or other obligations issued pursuant to hearings held and governmental approvals obtained prior to the effective date of this act in compliancetocompliance of 3 with federal law or regulation.

R An authority shall have power to issue bonds from time to time in its discretion, for any ofOitsof its corporate purposes.

An authority shall also have power to issue refunding bonds for the purposeLofpurpose of paying or retiring bonds previously issued by it or for the purpose of refunding loans made by another asentity itif maysuch determine,loans includingcould (withouthave limitingbeen themade generalityby of the foregoing):authority.

An authority may issue such types oLof bonds (a)as Bondsit onmay whichdetermine, theincluding principal(without andlimiting interestthe aregenerality payable:of the foregoing):

E(a) (1)Bonds Exclusivelyon fromwhich the incomeprincipal and revenuesinterest ofare thepayable: housing project financed with the proceeds of such bonds;

or(1) D (2) Exclusively from the income and revenues of certainthe designated housing projectsproject whether or not they are financed in whole or in part with the proceeds of such bonds;

or (b)(2) BondsExclusively onfrom which the principalincome isand payablerevenues solelyof fromcertain annualdesignated contributionshousing projects whether or grantsnot receivedthey fromare thefinanced federalin governmentwhole or receivedin frompart anywith otherthe source,proceeds publicof orsuch private.bonds;

Any such bonds may be additionally secured by a pledge of any grant or contributions(3) fromFrom theits federal government or other source, or a pledge of any income or revenues ofgenerally. the authority, or S mortgage of any housing project, projects or other property of the authority.

1(b) NeitherBonds the commissioners of an authority nor any person executing the bonds shall be liable6 authority (and such bonds and obligations shall so state on theirwhich face) shall not be a debt of the city,principal theis county,payable thesolely Commonwealthfrom orannual anycontributions political subdivision thereof (other than the authority) and neither the city or thegrants county,received norfrom the Commonwealthfederal orgovernment any political subdivision thereof (other than the authority) shall be liable thereon, nor in any event shall such bonds or obligationsreceived befrom payable out of any funds or properties other thansource, thosepublic ofor theprivate. authority.

Any such bonds may be additionally secured by a pledge of any grant or contributions from the federal government or other source, or a pledge of any income or revenues of the authority, or a mortgage of any housing project, projects or other property of the authority.

Neither the commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof.

The bonds and other obligations of an authority (and such bonds and obligations shall so state on their face) shall not be a debt of the city, the county, the Commonwealth or any political subdivision thereof (other than the authority) and neither the city or the county, nor the Commonwealth or any political subdivision thereof (other than the authority) shall be liable thereon, nor in any event shall such bonds or obligations be payable out of any funds or properties other than those of the authority.

Whenever federal law requires public hearings and public approval as a prerequisite to obtaining federal tax exemption for the interest paid on private activity bonds authorized by this section, unless otherwise specified by federal law or regulation, the public hearing shall be conducted by the authority and the procedure for the public hearing and public approval shall be consistent with the procedures set forth in § 15.2-4906.