WHEREAS, the Congress of the United States has enacted The Deficit Reduction Act of 1984 (the "Act"), which Act inter alia imposes an annual state-by-state ceiling (the "State Ceiling") on the issuance of certain industrial development bonds and student loan bonds ("Private Activity Bonds") which State Ceiling is equal to the greater of (a) $200 million; or (b) an amount equal to $150 multiplied by the state's population; and
WHEREAS, Section 621 of the Act adds a new subsection (n) to Section 103 of the Internal Revenue Code to set forth a method of allocating the State Ceiling within each state for all governmental units in the state having authority to issue Private Activity Bonds ("Issuers") unless the state provides by law a different formula of allocation; and
WHEREAS, the method of allocation of the State Ceiling set forth in the Act may restrain the issuance of Private Activity Bonds for qualified industrial development facilities and other eligible uses; and
WHEREAS, under the Act the Governor of a state, by proclamation, may provide a different formula for allocating the State Ceiling among all Issuers as interim authority pending the enactment of state law with respect to the State Ceiling; and
WHEREAS, it appears that, at the present time, the State Ceiling allocable to the State of Washington shall be more than sufficient to permit the issuance of all qualified Private Activity Bonds which may be sold prior to the enactment of such state legislation; and
WHEREAS, it is in the best interest of the welfare of the residents of the state of Washington to promote industrial and economic development and encourage private investment in our state's economy, while preserving the ability of local governmental units to finance public improvements which are owned, operated, and controlled by public entities;
NOW, THEREFORE, I, John Spellman, Governor of the state of Washington, do hereby order:
Section 1. From and after December 31, 1983, when Section 621 of the Act relating to the State Ceiling took effect retroactively, the State Ceiling for the State of Washington shall be allocated to each Issuer in the order of the date of filing with the Department of Commerce and Economic Development (the "Department") of a purchase agreement or similar binding commitment for the purchase of such Private Activity Bonds (a "Purchase Agreement"). Each Issuer for such Bonds shall accomplish such filing by submitting to the Department a photocopy of the signed Purchase Agreement, along with a Notification Form as provided by the Department. If the Closing Certification Form is not filed within 90 days of the filing of the signed Purchase Agreement, the Purchase Agreement must be refiled, and the effective date of filing for purposes of allocation of the State Ceiling will be the date the Purchase Agreement was refiled. In the event that the amount of Bonds issued at time of closing is different than the amount contemplated by the Purchase Agreement, the allocation received by the Issuer shall be adjusted to the amount actually sold at closing.
Section 2. The allocation formula provided in Section I of this Executive Order shall be effective until the earlier of (a) the effective date of legislation enacted by the state which provides for a different formula for allocating the State Ceiling among Issuers in the State of Washington; or (b) Federal law or Federal regulations require the use of a different formula; or (c) this Executive Order is rescinded and a different formula is provided by further Executive Order of the Governor or by the operation of Federal law.
Section 3. The allocation formula provided in Section I of this Executive Order shall be reviewed when and if the total amount of Private Activity Bonds for which notifications have been filed with the Department exceeds three hundred fifty million dollars ($350,000,000) in any calendar year, in which event a different formula may be provided to preserve the ability of governmental units to finance public improvements owned, operated, and controlled by public entities.
Section 4. This Executive Order shall constitute a proclamation, as that term is used in Section 621 of the Act relating to the State Ceiling.
have hereunto set
my hand and caused the seal of the State of
Washington to be affixed at Olympia this
8th day of August A.D., Nineteen hundred and eighty-four.
Secretary of State