Amends TCA Title 5; Title 6; Title 7; Title 13, Chapter 23; Title 48, Chapter 101, Part 9; Title 67, Chapter 5 and Section 67-4-409.
ON APRIL 24, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1137, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites the bill to, instead, authorize a municipality to aid or otherwise provide assistance to a corporation, including without limitation, by granting, contributing, or pledging to or for the benefit of the corporation revenues derived from any source except revenues derived from ad valorem property taxes, for that portion of any project (i) owned by the corporation; and (ii) consisting of any multifamily housing facilities to be occupied by persons of low or moderate income, elderly, or handicapped persons, for such term or terms and upon such conditions as may be determined by the governing body of the municipality.<br /> <br /> ON APRIL 25, 2024, THE HOUSE SUBSTITUTED SENATE BILL 1137 FOR HOUSE BILL 1229, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 1137, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites the bill as follows:<br /> <br /> (1) Authorizes a municipality to aid or otherwise provide assistance to an industrial development corporation ("corporation"), including, without limitation, by granting, contributing, or pledging to or for the benefit of the corporation revenues derived from any source except revenues derived from ad valorem property taxes, for that portion of any project (i) owned by the corporation; and (ii) consisting of multifamily housing facilities to be occupied by persons of low or moderate income, elderly, or handicapped persons, for such term or terms and upon such conditions as may be determined by the governing body of the municipality;<br /> <br /> (2) Establishes that the bill applies to a municipality that (i) has some amount of long-term general obligation indebtedness outstanding that is rated in not lower than the third rating category for long-term debt instruments (AA/Aa2) by a nationally recognized rating agency for municipal securities, without regard to the effect of any credit agreement or other form of credit enhancement entered into in connection with such rated indebtedness; and (ii) has submitted, in association with each individual proposed project, to the comptroller a plan for the provision of assistance to the corporation and received from the comptroller a written determination that such plan is in the best interest of the state;<br /> <br /> (3) At a minimum, requires the plan submitted pursuant to (2)(ii) above to contain the nature and feasibility of the project, how the public-private partnership for the entire project is structured, the risks to the municipality, how those risks are mitigated, the proposed types of assistance, and a description of how the plan is in the best interest of the state;<br /> <br /> (4) Establishes that the plan submitted pursuant to (2)(ii) above is deemed approved if the written determination by the comptroller is not rendered within 60 days of the comptroller's receipt of the complete plan from the municipality. The plan is not deemed received until complete, and the comptroller may request any additional information as deemed necessary for the review; and<br /> <br /> (5) Establishes that the issuance of the debt in total with all other debt of the municipality being secured by a pledge of non-ad valorem taxes may not exceed a debt service coverage ratio determined by the comptroller.<br />
ON APRIL 24, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1137, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites the bill to, instead, authorize a municipality to aid or otherwise provide assistance to a corporation, including without limitation, by granting, contributing, or pledging to or for the benefit of the corporation revenues derived from any source except revenues derived from ad valorem property taxes, for that portion of any project (i) owned by the corporation; and (ii) consisting of any multifamily housing facilities to be occupied by persons of low or moderate income, elderly, or handicapped persons, for such term or terms and upon such conditions as may be determined by the governing body of the municipality.<br /> <br /> ON APRIL 25, 2024, THE HOUSE SUBSTITUTED SENATE BILL 1137 FOR HOUSE BILL 1229, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 1137, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites the bill as follows:<br /> <br /> (1) Authorizes a municipality to aid or otherwise provide assistance to an industrial development corporation ("corporation"), including, without limitation, by granting, contributing, or pledging to or for the benefit of the corporation revenues derived from any source except revenues derived from ad valorem property taxes, for that portion of any project (i) owned by the corporation; and (ii) consisting of multifamily housing facilities to be occupied by persons of low or moderate income, elderly, or handicapped persons, for such term or terms and upon such conditions as may be determined by the governing body of the municipality;<br /> <br /> (2) Establishes that the bill applies to a municipality that (i) has some amount of long-term general obligation indebtedness outstanding that is rated in not lower than the third rating category for long-term debt instruments (AA/Aa2) by a nationally recognized rating agency for municipal securities, without regard to the effect of any credit agreement or other form of credit enhancement entered into in connection with such rated indebtedness; and (ii) has submitted, in association with each individual proposed project, to the comptroller a plan for the provision of assistance to the corporation and received from the comptroller a written determination that such plan is in the best interest of the state;<br /> <br /> (3) At a minimum, requires the plan submitted pursuant to (2)(ii) above to contain the nature and feasibility of the project, how the public-private partnership for the entire project is structured, the risks to the municipality, how those risks are mitigated, the proposed types of assistance, and a description of how the plan is in the best interest of the state;<br /> <br /> (4) Establishes that the plan submitted pursuant to (2)(ii) above is deemed approved if the written determination by the comptroller is not rendered within 60 days of the comptroller's receipt of the complete plan from the municipality. The plan is not deemed received until complete, and the comptroller may request any additional information as deemed necessary for the review; and<br /> <br /> (5) Establishes that the issuance of the debt in total with all other debt of the municipality being secured by a pledge of non-ad valorem taxes may not exceed a debt service coverage ratio determined by the comptroller.<br />
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