EXECUTIVE ORDERS

01.01.1986.10

PROCLAMATION ON ALLOCATION OF STATE CEILING
FOR CERTAIN BONDS ISSUED IN 1986

WHEREAS, On [December 17, 1985 the United States House of
Representatives passed H.R. 3838, a tax reform bill] OCTOBER
22, 1986 H.R. 3838, THE TAX REFORM ACT OF 1986, WAS SIGNED
INTO LAW BY THE PRESIDENT OF THE UNITED STATES ("H.R. 3838")
[and it appears that final action on H.R. 3838 or any
substitute tax reform legislation will not be taken for
several months]; and

WHEREAS, H.R. 3838 [would amend] AMENDS the Internal Revenue Code
of 1954, as amended (the "Code") by establishing a ceiling
for each state on the dollar amount of [nonessential
function] PRIVATE ACTIVITY bonds (as defined in H.R. 3838)
("PRIVATE ACTIVITY BONDS") that may be issued by a state and
its agencies and political subdivisions in a calendar year
(the "State Ceiling") and by providing a method of
allocating the State Ceiling among a state's issuing
authorities; and

WHEREAS, The State Ceiling imposed by H.R. 3838 [would] WILL
result in a significant decrease in the dollar amount of
bonds which [could] CAN be issued by Maryland issuing
authorities for industrial and commercial development,
[educational and health care facilities,] single-family and
multi-family housing, and certain other governmental
programs financed by [nonessential function] PRIVATE
ACTIVITY bonds; and

WHEREAS, The provisions of H.R. 3838[, if enacted into law in its
present form, would be] ARE effective retroactively for
state and local bonds issued after [December 31, 1985]
AUGUST 15, 1986; and

WHEREAS, H.R. 3838 authorizes the Governor of Maryland to
proclaim a different State Ceiling allocation formula for
Maryland (the "Maryland State Ceiling") until the earlier of
the enactment of relevant state legislation or [such date
provided in H.R. 3838, currently January 1, 1987] JANUARY 1,
1988; and

WHEREAS, THE CONFERENCE REPORT TO ACCOMPANY H.R. 3838 (THE
"CONFERENCE REPORT") [Report No. 99-426 of the Committee on
Ways and Means of the United States House of Representatives
accompanying H.R. 3838] indicates that such state action
providing for a different State Ceiling allocation formula
may be taken prior to the ADOPTION OF [enactment of H.R.
3838] THE CONFERENCE REPORT, if such state action refers
specifically to the [unified] NEW PRIVATE ACTIVITY BOND
volume limitation imposed by H.R. 3838 [on the aggregate

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