|Michael S. Dukakis
|Executive Order 263
Table of Contents
Pursuant to House Resolution 3838
For the Period Beginning August 15, 1986
(Revoking Executive order 263)
WHEREAS, House Resolution 3838 ("H.R. 3838") as passed by the United States House of Representatives on September 25,1986 and by the United States Senate on September 27, 1986, would establish retroactively a calendar year state ceiling on the volume of private activity bonds issued after August 15, 1986, the interest on which is exempt from federal income taxes;
WHEREAS, under H.R. 3838, Massachusetts' 1986 state ceiling is $436,650,000, which is $75 per capita multiplied by 5,822,000, the population of the Commonwealth based on the most recent estimate of its resident population released by the Bureau of Census before the beginning of the calendar year;
WHEREAS, H.R. 3838 specifies an assignment of state ceiling between state agencies and other issuing authorities but provides that, subject to certain limitations, the Governor of any state may proclaim a different interim formula for assigning the state ceiling among the governmental units or other authorities in the state having authority to issue private activity bonds;
NOW, THEREFORE, I, Michael S. Dukakis, Governor of the Commonwealth, by virtue of the authority vested in me as Supreme Executive Magistrate, do revoke Executive Order 263 and do make the following assignments of state ceiling for the period from August 15, 1986 through December 31, 1986, and to continue thereafter unless and until superseded by further Executive Order, for the purpose of permitting bonds to be issued that require an allocation of state ceiling pursuant to H.R. 3838:
- Terms used herein shall have the meanings set forth in H.R. 3838.
- "Annual state ceiling" means the state ceiling for private activity bonds subject to allocation from August 15, 1986 through December 31, 1986, or the state ceiling subject to allocation in any succeeding calendar year.
- Any reference to a date herein used without reference to a year shall mean that date in 1986 and in each succeeding calendar year.
- Assignment to the Commonwealth of Massachusetts All of Massachusetts' annual state ceiling is assigned to the Commonwealth of Massachusetts. The Executive Office for Administration and Finance of the Commonwealth of Massachusetts ("A&F"), shall at its discretion allocate any of such state ceiling to issuers within the state, including municipalities and issuers of student loan bonds, housing bonds and other private activity bonds requiring allocation at such time as it shall determine, consistent with and pursuant to federal tax law and H.R. 3838. A&P shall allocate annual state ceiling only to those bonds as to which A&F has received a notice of intent to issue, from the proposed issuer. All allocations by A&F shall be made after consultation with a committee composed of the Secretary of the Executive Office of Communities and Development, the Secretary of the Executive Office of Environmental Affairs, the director of the Governor's Office of Economic Development and the director of the Governor's Office of Educational Affairs. A&F may also reassign any of the annual state ceiling assigned to the Commonwealth of Massachusetts pursuant to this section to the Department of Community Affairs of the Commonwealth of Massachusetts ("DCA") or to the Massachusetts Industrial Finance Agency ("MIFA") for further allocation or for carryforward, in accordance with such conditions as A&P shall specify. At the time it reassigns any state ceiling to DCA or MIFA, A&F shall specify when and if such reassignment shall expire.
- Allocation Procedures. Each allocation of the annual state ceiling made by A&F shall be in writing, shall be made for a specific bond issue and shall specify the date on or before which the bonds must be issued in order for the allocation to be effective. No allocation in any year, except for carryforwards described in section 4, shall have an expiration date later than December 31.
- Carryforwards. A&F may carry forward any unused portion of the remaining annual state ceiling assigned or reassigned to the Commonwealth of Massachusetts pursuant to section 2 of this Order for any bonds eligible for a carryforward of state ceiling under federal tax law and H.R. 3838. No annual state ceiling may be allocated to carryforward projects prior to November 1.
- Delegations. The Secretary of Administration and Finance or the Secretary's designee is authorized to make all representations, file all documents and take all other actions in the name and on behalf of A&F as may be required for compliance with federal tax law and to implement this Order. In the event that responsibilities under this Executive Order are assigned to DCA or MIFA, appropriate provision for designations shall be made by the Secretary of Administration and Finance. All designations made pursuant to this section shall be evidenced in writing.
- Recordkeeping. A&F shall make reasonably available to the public information as to the amount of state ceiling not yet allocated and the expiration dates for all state ceiling allocated by it, and shall confirm upon request an allocation of state ceiling to a particular bond issue and the duration thereof.
- Guidelines. Prior to making any allocations, A&F shall adopt guidelines governing allocation of state ceiling.
- Transition Rules. Any bonds issued on or prior to August 15, 1986 shall not be subject to this Order. Bonds which received allocations pursuant to Executive Order No. 262 or 263 but which have not yet been issued must receive a ratification of their allocations from A&F. Allocations granted to all bonds issued after August 15, 1986 pursuant to Executive Orders 262 or 263, but prior to the date of this Executive Order, shall be deemed to have been confirmed by this Executive Order.
- Effective Date. This Order shall be effective as of the date hereof and shall remain effective until the earlier of its termination as a matter of federal tax law or the effective date of any legislation enacted by the General Court with respect to the allocation of state ceiling under B.R. 3838.
Given at the Executive Chamber in Boston this 3rd day of October in the year of our Lord, one thousand nine hundred and eighty-six, and of the Independence of the United States of America two hundred and eleven.
Michael S. Dukakis, Governor
The Commonwealth of Massachusetts
Michael Joseph Connolly
Secretary of the Commonwealth