HB 26-1341

HB 26-1341 is a Colorado state bill that changes when the Colorado Agricultural Development Authority must give back any unused bond allocation. Instead of September 15th each year, this date is now set for November 15th. This affects how much and when the authority can issue tax-exempt bonds to support agricultural projects. Since the bill has been signed into law, it means that these changes are now official and in effect.

Official Summary

The state private activity bond program funds privately developed projects by allowing the state and its political subdivisions to issue tax-exempt private activity bonds. The federal internal revenue code limits the total amount of tax-exempt private activity bonds that a state and its political subdivisions may issue each year by imposing a private activity bond ceiling (state ceiling). Existing law specifies a formula to allocate the ability to issue tax-exempt private activity bonds up to the state ceiling and initially allocates 50% of these bonds among several state issuing authorities through direct allocations as determined by the department of local affairs (department). On September 15 each year, with a few exceptions, each state issuing authority is required to relinquish unused portions of its direct allocation which is then further allocated pursuant to law. The Colorado agricultural development authority is one of the state issuing authorities to which the department may allocate a portion of the state ceiling. The act changes the date on which the Colorado agricultural development authority is required to relinquish the unused portion of its direct allocation from September 15 to November 15 each year.(Note: This summary applies to this bill as enacted.)

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