City of Columbus, Ohio - Page 13

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          proposed bonds as if the funds raised therefrom were utilized               
          directly in 1994.  As to petitioner's characterization of the               
          City Obligation, petitioner fails to accord adequate recognition            
          to the broad authority given to the Secretary to issue                      
          regulations implementing section 148.  Thus, section 148(i)                 
          provides:                                                                   
                    (i)  Regulations.--The Secretary shall prescribe                  
               such regulations as may be necessary or appropriate to                 
               carry out the purposes of this section.                                
               The breadth of this authority to issue "legislative"                   
          regulations, see Coca-Cola Co. & Subs. v. Commissioner, 106 T.C.            
          1, 18-19 (1996), is clearly revealed by the following statement             
          in the report of the House Ways and Means Committee at the time             
          of the enactment of the Technical and Miscellaneous Revenue Act             
          of 1988, Pub. L. 100-647, sec. 1013(a)(34)(A), 102 Stat. 3342,              
          3544:                                                                       
                    The bill further deletes and re-inserts the term                  
               "necessary" in the specific regulatory authority                       
               granted the Treasury Department under the arbitrage                    
               restrictions.  This amendment is intended to clarify                   
               that Treasury's regulatory authority is to be                          
               interpreted broadly, rather than in a literal,                         
               dictionary manner * * *.  That regulatory authority is                 
               intended to permit Treasury to eliminate any devices                   
               designed to promote issuance of bonds either partially                 
               or wholly as investment conduits in violation of the                   
               provisions adopted by Congress to control such                         
               activities and to limit the issuance of tax-exempt                     
               bonds to amounts actually required to fund the                         
               activities for which their use specifically has been                   
               approved by Congress.  Further, that regulatory                        
               authority is intended to permit Treasury to adopt rules                
               (including allocation, accounting, and replacement                     




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