Gov. Perry Issues Proclamation Amending the Administration of Hurricane Ike Disaster Area Bond Program
TO ALL TO WHOM THESE PRESENTS SHALL COME:
I, RICK PERRY, Governor of the State of Texas, do hereby amend the proclamation issued by me on December 7, 2009, which provided for the administration of the qualified Hurricane Ike disaster area bond program and naming priorities for the designation of such bonds.
WHEREAS, Hurricane Ike inflicted serious damage on the coastal region of Texas on September 13, 2008; and
WHEREAS, on October 3, 2008, the President of the United States signed into law the Heartland Disaster Tax Relief Act of 2008 (the "Act"), which included changes to the federal tax law designed to provide economic relief to the Hurricane Ike disaster area; and
WHEREAS, in accordance with the Act, the Hurricane Ike disaster area includes the following 34 Texas counties: Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Gregg, Grimes, Hardin, Harris, Harrison, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Rusk, Sabine, San Augustine, San Jacinto, Shelby, Smith, Trinity, Tyler, Walker, Waller, and Washington; and
WHEREAS, the Act allows for the issuance of certain tax exempt, qualified Hurricane Ike disaster area bonds to provide financing in the Hurricane Ike disaster area, through December 31, 2012; and
WHEREAS, the Act provides that the Governor of the State of Texas shall designate qualified Hurricane Ike disaster area bonds on the basis of providing assistance to areas in the order in which such assistance is most needed; and
WHEREAS, the Act provides that the maximum aggregate face amount of such bonds that may be designated shall not exceed the product of $2,000 multiplied by the portion of the population that is in the Texas counties of Brazoria, Chambers, Galveston, Jefferson, and Orange (as determined on the basis of the most recent census estimate of resident population released by the U.S. Census Bureau before September 13, 2008), which is a total of $1,863,270,000; and
WHEREAS, a portion of such bond authority is unencumbered, waived, or returned to the state and therefore remains available to provide assistance to the areas affected by Hurricane Ike; and
WHEREAS, the legislature has authorized the Bond Review Board in Section 1372.101(b) of the Texas Government Code to administer the qualified Hurricane Ike disaster area bond program established by the governor.
BE IT RESOLVED, I, Rick Perry, Governor of the State of Texas, hereby direct that any qualified Hurricane Ike disaster area bonding authority that is unencumbered, waived, or by any means returned to the state shall be made available to qualified Hurricane Ike disaster area bond program applicants located in any of the 34 Texas counties listed above.
BE IT FURTHER RESOLVED, the principal amount of any such bonds designated for a single applicant shall be no less than $10,000,000; and
BE IT FURTHER RESOLVED, the Bond Review Board shall, under the direction of the Office of the Governor, administer the state's qualified Hurricane Ike disaster area bond program; and
BE IT FURTHER RESOLVED, as part of its administration of the program, the Bond Review Board shall maintain the official record of the designations and issuances of all qualified Hurricane Ike disaster area bonds; and
BE IT FURTHER RESOLVED, eligible issuers of such bonds shall complete and submit to the Bond Review Board an official application to the Office of the Governor for designation of the bonds (and, at the election of the applicant, for designation of a person to use the property to be financed as carrying on a trade or business replacing a trade or business with respect to which another person suffered a loss attributable to Hurricane Ike) in the form approved by the Office of the Governor and available at the Bond Review Board, together with a $1,000 application fee; and
BE IT FURTHER RESOLVED, the application shall include a letter of bond counsel to the effect that interest on the bonds would not be excluded from gross income for federal income tax purposes unless the bonds receive the requested designation(s) and, if the requested designation(s) are made, bond counsel expects to be able to render an opinion that the bonds and the project comply with the requirements of the Act and applicable state law; and
BE IT FURTHER RESOLVED, applicants are subject to requests from the Office of the Governor or the Bond Review Board for additional information related to an application; and
BE IT FURTHER RESOLVED, following application to the Bond Review Board, the Office of the Governor shall make designations on a case-by-case basis to ensure that each project is an appropriate use of funds under the Act; and
BE IT FURTHER RESOLVED, once an applicant receives a designation of bonds as qualified Hurricane Ike disaster area bonds, the period for issuing such bonds is within 120 days after the date of designation or such longer period approved by the Office of the Governor (the "Designation Period"); and
BE IT FURTHER RESOLVED if such bonds are not issued within the Designation Period, the designation is deemed waived, and the amount of the designation automatically becomes eligible for new designation in accordance with the program requirements; and
BE IT FURTHER RESOLVED, within five days after such bonds are issued, the applicant shall submit to the Bond Review Board a certification, in a form approved by the Office of the Governor and available from the Bond Review Board, of the principal amount of such bonds that have been issued, and the applicant shall promptly notify the Bond Review Board of any abandonment of its intention to issue such bonds and release its designation for such bonds; and
BE IT FURTHER RESOLVED, my December 7, 2009, proclamation superseded the provisions of my March 17, 2009, proclamation, designating priorities of the utilization of qualified Hurricane Ike disaster area bonds; however, the provisions of my March 17, 2009, proclamation, designating bonds as Hurricane disaster area bonds (and the designation made thereby) are hereby saved and shall remain unaffected by my December 7, 2009, proclamation and this proclamation.
BE IT FURTHER RESOLVED, I reserve the right, as necessary to benefit the citizens of the Hurricane Ike disaster area, to amend any and all of the resolutions of this proclamation.
IN TESTIMONY WHEREOF, I have hereunto signed my name and have officially caused the Seal of State to be affixed at my Office in the City of Austin, Texas, this the 17th day of February, 2012.
Governor of Texas
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