SENATE DOCKET, NO. 19        FILED ON: 1/9/2015

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 115

The Commonwealth of Massachusetts

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PRESENTED BY:

Brian A. Joyce

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to ensure responsible bond issuance in the Commonwealth.

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PETITION OF:

SENATE DOCKET, NO. 19        FILED ON: 1/9/2015

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 115

The Commonwealth of Massachusetts

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In the One Hundred and Eighty-Ninth General Court
(2015-2016)

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An Act to ensure responsible bond issuance in the Commonwealth.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. All references to Chapter 40D of the Massachusetts Industrial Finance Agency shall be deleted and replaced with the Massachusetts Development Finance Agency, its successor in interest.

SECTION 2. Chapter 40D of the General Laws is amended by inserting after Section 23 the following section:-

Section 24. (a) Before any specified governmental unit may give host approval to a TEFRA required approval issue, such host approval shall be approved by the Massachusetts Development Finance Agency as provided in this section 24.

(b)  The Massachusetts Development Finance Agency shall review any request for approval of a host approval of a TEFRA required approval issue by a specified governmental unit pursuant to the approval process for a municipality set forth in subsections (1), (2)(a) through (k) and (3) of section 12 of Chapter 40D.  For purposes of this section, all references to a municipality in section 12 of chapter 40D, all references to constituent municipalities in section 12 of chapter 40D, and all references to an authority in section 12 of chapter 40D, shall mean the specified governmental unit seeking approval of its host approval.

(c) The Massachusetts Development Finance Agency shall charge such fees as it determines necessary to conduct its review of the host approval and impose such conditions upon its approval as it determines are in the public interest.

(d) For purposes of this section 24, “host approval” means either (i) the approval required by Section 147(f)(2)(A)(ii) of the Internal Revenue Code of 1986, or corresponding successor or analogous provisions, of a TEFRA required approval issue, or (ii) in the case of a refunding issue described in clause (ii) of the first sentence of paragraph (b), the approval that would have been so required but for said issue constituting a refunding issue.

(e) For purposes of this section 24, “Specified governmental unit” means any governmental unit seeking to give host approval to a TEFRA required approval issue.

(f) For purposes of this section 24, “TEFRA required approval issue” means any issue of a debt instrument or debt instruments that, as a condition of interest on such debt instrument or debt instruments being excluded from gross income for federal income tax purposes, or as a condition of a federal tax credit or other federal tax benefit being available in connection with said issue, either (i) must meet the public approval requirements of Section 147(f) of the Internal Revenue Code of 1986, or corresponding successor or analogous provisions, of a TEFRA required approval issue, or (ii) in the case of a refunding issue, would have been required but for said issue constituting a refunding issue. No TEFRA required approval issue shall be a valid issue unless such issue has received host approval.

(g) This section 24 shall not apply to any TEFRA required approval issue issued by the commonwealth or by any entity, agency, board or political subdivision of the commonwealth which issues bonds under the laws of the commonwealth.