KRS 103.286: Kentucky Private Activity Bond Allocation Committee.

(1) The Kentucky Private Activity Bond Allocation Committee is established. The

purpose of the committee shall be to ensure compliance by the Commonwealth, its

political subdivisions, and other authorized issuers within the Commonwealth of

Kentucky, of private activity bonds, as defined in the Internal Revenue Code of the

United States, with the state ceiling on the issuance of the bonds imposed by the

Tax Reform Act of 1986, 26 U.S.C. sec. 146. The committee shall be attached to

the Finance and Administration Cabinet for administrative purposes and staff

services. The committee shall be composed of the secretary of the Finance and

Administration Cabinet, who shall be chairman of the committee; the secretary of

the Cabinet for Economic Development; the state bud get director; the state

controller, Finance and Administration Cabinet; and the secretary of the Governor's

Cabinet, or their respective designees.

(2) The committee shall attempt to allocate the state ceiling of Kentucky in order to

best effectuate the is suance of private activity bonds, foster economic development

within the Commonwealth, and promote the general welfare of its citizens and the

public purposes of the Commonwealth.

(a) For each calendar year, during the period in which the issuance of priva te

activity bonds is authorized by the federal government, the first fifty percent

(50%) of the term shall be designated as a period in which the committee shall

provide that no less than:

1. Sixty percent (60%) of the private activity cap be reserved for state bond

issuance authorities; and

2. Ten percent (10%) of the private activity cap be reserved for

manufacturing facility energy efficiency bonds issued by any issuer

pursuant to KRS 103.282.

(b) For each calendar year, during the period in which the is suance of private

activity bonds is authorized by the federal government, the last fifty percent

(50%) of the term shall be designated by the committee as the period in which

the remaining unallocated cap shall revert to a single pool to be allocated in

accordance with subsection (3) of this section.

(3) The secretary of the Finance and Administration Cabinet shall promulgate

regulations in accordance with KRS Chapter 13A, to provide for the allocation of

the state ceiling on private activity bonds among al l issuers of the bonds within the

Commonwealth of Kentucky.

(4) No bonds governed by this section shall be issued that are not in compliance with

the state ceiling, subsection (2)(a) and (b) of this section, or with the allocation,

application, or review p rocedures established by the secretary of the Finance and

Administration Cabinet.