A BILL TO BE ENTITLED
AN ACT to modify the responsibilities of the north carolina federal tax reform allocation committee.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143‑433.6 reads as rewritten:
"§ 143‑433.6.  Legislative Findings.
(a)	The General Assembly finds and determines that the Tax Reform Act of 1984 established a federal volume limitation upon the aggregate amount of "private activity bonds" that may be issued by each state; that, pursuant to Section 103(n) of the Internal Revenue Code of 1954, as amended, a previous Governor of North Carolina issued Executive Order 113 proclaiming a formula for allocating the federal volume limitation for North Carolina; that on October 22, 1986, the Tax Reform Act of 1986, hereinafter referred to as the "Tax Reform Act", was enacted; that the Tax Reform Act (i)  establishes a new unified limitation for private activity bonds on a state by state basis, (ii)  establishes a new definition of the types of private activity bonds to be included under those new limitations, (iii)  establishes a new low‑income housing credit to induce the construction of and the improvement of housing for low‑income people, and (iv)  limits the aggregate use of this low‑income housing credit on a state by state basis; that the Tax Reform Act provides for federal formulas for the allocation of these "state by state" resources, and also provides for states which cannot use the federal formula for allocation to set allocation procedures and formulas which are more appropriate for the individual states; that the Tax Reform Act gives authority for the legislature of each state to formulate and execute plans for allocation; and that Section 146 of the Internal Revenue Code of 1986, as amended, and Section 42 of the Internal Revenue Code of 1986, as amended, will require continued inquiry and study in the ways in which North Carolina can best and most fairly manage and utilize resources provided therein.
(b)	The General Assembly further finds and determines that the Economic Growth and Tax Relief Reconciliation Act of 2001 added new subsections (a)(13) and (k) to section 142 of the Internal Revenue Code of 1986, as amended, which (i) establish a new type of private activity bond that can be issued to finance "qualified public educational facilities," (ii) establish an annual aggregate limitation on the face amount of qualified public educational facility bonds that may be issued on a state-by-state-basis, (iii) provide that each state may allocate the annual aggregate limitation for any calendar year in such manner as each state determines appropriate, and (iv) provide for an elective carryforward by each state of the unused annual aggregate limitation; and that subsections (a)(13) and (k) will require continued inquiry and study in the ways in which North Carolina can best and most fairly manage and utilize the resource provided therein."
SECTION 2.  G.S. 143‑433.8 reads as rewritten:
"§ 143‑433.8.  Duties.
The Committee shall perform the following duties:
(1)	Manage the allocation of private activity bonds, low‑income housing credits, and qualified public educational facility bonds and receive advice from bond issuers, elected officials, and the General Assembly.
(2)	Continue to monitor bond markets, economic development financing trends, school financing trends, housing markets, and tax incentives available to induce events and programs favorable to North Carolina, its cities and counties, and individual citizens.
(3)	Continue to study the ways in which North Carolina can best and most fairly manage and utilize the allocation of private activity bonds, low‑income housing credits, and qualified public educational facility bonds.
(4)	Report to the Governor, Lieutenant Governor, and the Speaker of the House of Representatives as requested and on not less than an annual basis."
SECTION 3.  G.S. 143‑433.9(a) reads as rewritten:
"(a)	To provide for the orderly and prompt issuance of private activity bonds and qualified public educational facility bonds, there are hereby proclaimed formulas for allocating the following:  (i) the unified volume limitation, (ii) the state housing credit ceiling, and (iii) the annual aggregate limitation on the face amount of qualified public educational facility bonds. The unified volume limitation for all issues of private activity bonds, other than qualified public educational facility bonds, in North Carolina shall be considered as a single resource to be allocated under this Article. The annual aggregate limitation on the face amount of qualified public educational facility bonds for all issues in North Carolina shall be considered as a single resource to be allocated under this Article. The Committee shall issue the following:  (i)  allocations of the unified volume limitation, (ii) allocations of the state housing credit ceiling, and (iii) allocations of the aggregate limitation on the face amount of qualified public educational facility bonds. The Committee shall set forth procedures for making such allocations and in the making of such allocations shall take into consideration the best interest of the State of North Carolina with regard to the economic development, school facility needs,  and general prosperity of the people of North Carolina. The Committee shall make all elective carryforwards of the unused unified volume limitation and the annual aggregate limitation on the face amount of qualified public educational facility bonds on behalf of the State."
SECTION 4.  This act is effective when it becomes law.