AB 49

Bill Subjects

Abstract

Existing federal law prescribes a volume ceiling on the aggregate amount of private activity bonds that may be issued in a state. Existing law creates the California Debt Limit Allocation Committee for the purpose of administering the volume limit for the state on private activity bonds through an allocation system. Existing law defines "private activity bonds" as a part or all of any bond, or other instrument, required to obtain a portion of the state's volume cap, as specified under federal law, in order to be exempt from taxation, which includes qualified mortgage bonds and qualified student loan bonds. Existing law requires the California Debt Limit Allocation Committee to annually determine and announce the state ceiling for the calendar year, and allocates to the committee that amount for further allocation to state and local agencies subject to their applications. Existing law prescribes the duties and powers of the committee, including in connection with the Marks-Roos Local Bond Pooling Act of 1985, mortgage credit certificate programs, the Extra Credit Teacher Home Purchase Program, and the California Homebuyer's Downpayment Assistance Program. Existing law establishes the California Tax Credit Allocation Committee for the purpose of allocating low-income housing tax credits allowed under federal law. This bill would abolish the California Debt Limit Allocation Committee and transfer its powers, duties, and functions to the California Tax Credit Allocation Committee. The bill would provide for the transfer of civil service employees, funds, property, and liabilities of the California Debt Limit Allocation Committee to the California Tax Credit Allocation Committee. The bill would require that regulations of the California Debt Limit Allocation Committee remain in effect until the California Tax Credit Allocation Committee amends or repeals those regulations, or adopts successor regulations. The bill would make conforming changes to properly identify the California Tax Credit Allocation Committee and to repeal obsolete references.