On Thursday, Governor Cuomo signed into law the Private Activity Bond Allocation Act of 2016 (A.10255/S.7637) which continues the same distribution formula for volume cap used in previous years and includes important reforms. Volume cap allocation formula:
- One-third to local Industrial Development Agencies (IDAs) in proportion to their share of the state’s population
- One-third to the state Division of the Budget (DOB) for distribution to state agencies
- One third to a Statewide Bond Reserve managed by DOB
Without the renewal of the existing allocation formula, volume cap distribution would follow the Federal default formula which provides that half of a state’s volume cap will be allocated to the state and half to local agencies, in proportion to their share of the state population.
Reforms include the following:
- Moves recapture date from October to September 15 which will make it easier to plan for full utilization of volume cap each year
- Establishes November 15 deadline by which agencies/issuers may make requests for unused volume cap
- New online reporting requirements for the New York State Department of Economic Development and the New York State Division of the Budget to publish utilization information on their websites, bringing needed transparency to statewide consumption of volume cap
- July 1 utilization report will be published on DOB website
- September 15 recaptured volume cap will be reported online
January 15 aggregate reporting of unused volume cap for prior year is required by DOB
