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I I I I I I I I I I I I i I I I Proposed federal legislation ("H.R. 4170") makes taxable the interest on a "private activity bond" issued in excess of "an authority's private activity bond limit for such calendar year". This bond limit applies to all student loan bonds and "industrial development bonds" ("IDBs#) other than certain refunding, rental housing and certain exempt facility bonds. The limit is based on a state ceiling equal to $150 multiplied by the state's ~opulation, subject to a ~ossible upward adjustment for the year 1984 and a 1/3 downward adjustment commencing in 1986. The League of Minnesota Cities has estimated that, unless it is modified in the finally adopted federal legislation, the bond limit for Minnesota will be about $600,000,000 for 1984 and 1985. H.R. 4170 allocates 50% of the bond limit to the state and the balance to local issuers in proportion to their population. This allocation may be modified by the Governor or, after enactment of H.R. 4170, the State Legislature. Laws of Minnesota, 1984, Chapter 582 [S.F. 2100] (the "Act") attempts to effect such a change, but since it was not enacted after enactment of H.R. 4170, the revised allocation will only become effective if the Governor issues a proclamation implementing the allocation provisions of S.F. 2100. The Governor signed S.F. 2100 on April 26, 1984 but has not, to date, issued a confirming proclamation. We understand that the Minnesota Department of Energy and Econo~ic Development has recommended to the Governor that he issue such a proclamation, which requires two weeks published notice. The act sunsets on January 1, 1986. ALI,OCATIOBSOF~STOLOCAI, IS~ By statute, the Higher Education Coordinating Board ("HECB"), the Iron Range Resources and Rehabilitation Board ("IRRRB") and the Department of Energy and Economic Development ("EED") receive the first $100,000,000 a year of bonding authority. The balance of Minnesota's per capita limit is allocated among local issuers of IDBs. From January 1 to August 31, 80% of this amount is available solely to entitlement issuers, and 20% solely to other local issuers. Allocations not used by certain dates are to be reallocated unless preserved by certain action.