[Congressional Record Volume 145, Number 30 (Thursday, February 25, 1999)]
[Extensions of Remarks]
[Page E295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E295]]
 A BILL TO INCREASE THE ANNUAL CAP ON STATES' AUTHORITY TO ISSUE THEIR 
OWN TAX-EXEMPT PRIVATE ACTIVITY BONDS AND TO INDEX SUCH AMOUNTS IN THE 
                                 FUTURE

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                      Thursday, February 25, 1999

  Mr. HOUGHTON. Mr. Speaker, I am pleased to join my colleague from 
Massachusetts, Mr. Neal, together with a number of other colleagues, in 
introducing our bill, ``The State and Local Investment Opportunity Act 
of 1999.'' The bill would raise the annual cap on states' authority to 
issue their own tax-exempt ``Private Activity'' bonds to $75 times 
population ($225 million if greater) and provides for an inflation 
adjustment based on the consumer price index for calendar years after 
2000. The bill would be effective for calendar years after 1999.
  A similar bill was introduced in the 105th Congress and was enacted 
without the indexation provision and the increase in the annual cap is 
being phased in starting in 2003. Thus, our new bill is the same as 
last year's bill except for the indexation and effective date. Chairman 
Archer of the Ways and Means Committee was totally cooperative in our 
effort last Congress, and indeed was key in including our original 
proposal in the Taxpayer Relief Act of 1998, which the House passed but 
the Senate did not take up. Nevertheless, the Chairman persisted in 
including the phased-in provision in the smaller so-called ``extender 
bill'' that was enacted.
  We believe this change is important to all of us, in that tax-exempt 
Private Activity Bonds finance affordable ownership and rental housing, 
manufacturing job creation, environmental cleanup, infrastructure and 
student loans. Nationwide, demand for bond authority exceeded supply by 
nearly 50 percent in 1997, according to the National Council of State 
Housing Agencies. This is a bipartisan issue. Three-quarters of the 
House supported our bill in the 105th Congress and a majority of the 
Senate cosponsored identical Senate legislation. The nation's governors 
and mayors, other state and local governmental groups, and the public 
finance community all strongly support full bond cap restoration.
  On the possibility that a large tax package moves forward this 
session, we believe it is important to reconsider the effective date 
issue, as well as the indexing for inflation going forward.
  We urge our colleagues to join us in cosponsoring this important 
legislation--``The State and Local Investment Opportunity Act of 
1999.''

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