HD31 - Interim Report of the Joint Commission Studying Virginia's Industrial Development and Revenue Bond Act
Executive Summary: The federal government with passage of the "Tax Equity and Fiscal Responsibility Act of 1982" (TEFRA) has dramatically curbed what many people perceived to be abuses in the use of industrial development bonds. The enactment of the federal legislation followed the General Assembly's adoption of HJR 23 (copy attached). Your Commission considered, in view of the changes in federal law, whether there still existed a need to conduct the study and concluded that the need was still present because portions of the federal law will not become effective until December 31, 1986, thereby giving Congress sufficient time to amend or repeal its 1982 enactment. Also a state has the option of making its law even more restrictive than the federal law. After public hearings and deliberations the Commission concludes that Virginia's Industrial Development and Revenue Bond Act in its public hearing and approval aspects and in its limitation on facilities that may be financed with industrial development bonds should be only nominally more restrictive than the new federal law (TEFRA). |
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