§39-66  Federal tax-exempt status;

preference; protection.  (a)  Revenue bonds issued pursuant to this part,

to the extent practicable, shall be issued to comply with requirements imposed

by applicable federal law providing that the interest on such revenue bonds

shall be excluded from gross income for federal income tax purposes (except as

certain minimum taxes or environmental taxes may apply).  The department head

or presiding officer of the governing body is authorized to enter into

agreements, establish funds or accounts and take any action required in order

to comply with applicable federal law.  Nothing in this part or this chapter

shall be deemed to prohibit the issuance of revenue bonds, the interest on

which may be included in gross income for federal income tax purposes.

     (b)  For the purpose of insuring that interest

on revenue bonds issued pursuant to this part which is excluded from gross

income for federal income tax purposes (except as provided in subsection (a))

on the date of issuance shall continue to be so excluded, no state officer or

employee, or user of an undertaking or loan program shall authorize or allow

any change, amendment, or modification to an undertaking or loan program

financed or refinanced with the proceeds of revenue bonds which change,

amendment, or modification thereto would affect the exclusion of interest on

those revenue bonds from gross income for federal income tax purposes unless

the change, amendment, or modification shall have received the prior approval

of the department head or chairperson of the governing body.  Failure to

receive the approval of the department head or chairperson of the governing

body shall render any change, amendment, or modification void. [L 1988, c 28,

pt of §3]