This rule was published in the October 1, 2014, issue (Vol. 2014, No. 19) of the Utah State Bulletin.
Governor, Economic Development
Private Activity Bond Allocation of Volume Cap Amount
Notice of Proposed Rule
DAR File No.: 38859
Filed: 09/11/2014 04:44:33 PM
Purpose of the rule or reason for the change:
This rule is created to outline the process by which applicant's request for bonding authority will be reviewed and the formula that is utilized to determine the allocation award given to the applicant.
Summary of the rule or change:
This rule provided definitions in addition to those provided for in statute. This rule outlines the formula utilized by the Private Activity Bonds Board to determine the allocation of the federally provided volume cap amount. The considerations and formula include: distribution being considered on a first come first served basis, illustrative lists of typical considerations made for each type of applicant, overall community need and impact, applicant's past ability to utilize the activity bonds allocated, etc.
State statutory or constitutional authorization for this rule:
Anticipated cost or savings to:
the state budget:
This program is a self-funded program through fees. This rule does not alter the amount of fees received by the program and therefore there is no new cost or savings to the state.
This program does not deal directly with or impact local governments. This rule does not change the non-existence of any interaction and therefore does not affect local governments. A small positive impact could be felt in increased local tax revenue provided by the applicants when utilizing bonds to create or grow their housing or manufacturing project in any given local municipality.
The impact to small business is minimal and positive as this provides a more streamlined and transparent process in an applicant ascertaining the viability of their application. Otherwise, there is no impact to small business because this rule does not address any general small business practices outside of offering a different financing mechanism.
persons other than small businesses, businesses, or local governmental entities:
Other persons impacted will most likely be housing developers. This rule will outline how their applications for allocation volume cap amount will be reviewed and how their allocation will be calculated.
Compliance costs for affected persons:
This rule does not address fees, which is the only source for compliance costs. Thus, this rule will not create any new compliance costs for affected persons.
Comments by the department head on the fiscal impact the rule may have on businesses:
The agency is excited to continue to offer an alternative financing source for specific industries in the state. The fiscal impact to businesses as a result of this rule is only positive in regards to the potential financing that some businesses can qualify for.
Val Hale, Executive Director
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
60 E SOUTH TEMPLE 3RD FLR
SALT LAKE CITY, UT 84111
Direct questions regarding this rule to:
- Jeffrey Van Hulten at the above address, by phone at 801-538-8694, by FAX at 801-538-8888, or by Internet E-mail at firstname.lastname@example.org
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
This rule may become effective on:
Val Hale, Executive Director
R357. Governor, Economic Development.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2014/b20141001.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.