H. B. 2045

(By Mr. Speaker, Mr. Chambers, and Delegate Ashley)

(By Request of the Executive)

(Originating in the House Committee on Finance)

[February 3, 1995]

A BILL to amend and reenact sections five and twenty-seven, article one, chapter twenty-two-c of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating generally to the water development authority; refinancing project; and increasing authorized limit on borrowing.

Be it enacted by the Legislature of West Virginia:
That sections five and twenty-seven, article one, chapter twenty-two-c of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:
§22C-1-5. Authority may construct, finance, maintain, etc.,
water development projects; loans to governmental agencies are subject to terms of loan agreements.

To accomplish the public policies and purposes and to meet the responsibility of the state as set forth in this article, the water development authority may initiate, acquire, construct, maintain, repair and operate water development projects or cause the same to be operated pursuant to a lease, sublease or agreement with any person or governmental agency; may make loans and grants to governmental agencies for the acquisition or construction of water development projects by governmental agencies, which loans may include amounts to refinance debt issued for existing water development projects of the governmental agency when such the refinancing is in conjunction with a loan the financing for a new water development project regardless of the source of the financing for the new project: Provided, That the amount of the refinancing may not exceed fifty percent of the loan to the governmental agency aggregate amount of such the refinancing of an existing project and the financing of a new project; and may issue water development revenue bonds of this state, payable solely from revenues, to pay the cost of projects, or finance projects, in whole or in part, by loans to governmental agencies. such projects. A water development project shall not be undertaken unless it has been determined by the authority to be consistent with any applicable comprehensive plan of water management approved by the director of the division of environmental protection or in the process of preparation by such the director and to be consistent with the standards set by the state environmental quality board, for the waters of the state affected thereby. Any resolution of the authority providing for acquiring or constructing such projects or for making a loan or grant for such projects shall include a finding by the authority that such the determinations have been made. A loan agreement shall be entered into between the authority and each governmental agency to which a loan is made for the acquisition or construction of a water development project, which loan agreement shall include without limitation the following provisions:
(1) The cost of such the project, the amount of the loan, the terms of repayment of such the loan and the security therefor, which may include, in addition to the pledge of all revenues from such the project after a reasonable allowance for operation and maintenance expenses, a deed of trust or other appropriate security instrument creating a lien on such the project;
(2) The specific purposes for which the proceeds of the loan shall be expended including the refinancing of existing water development project debt as provided above, the procedures as to the disbursement of loan proceeds and the duties and obligations imposed upon the governmental agency in regard to the construction or acquisition of the project;
(3) The agreement of the governmental agency to impose, collect, and, if required to repay the obligations of such the governmental agency under the loan agreement, increase service charges from persons using said the project, which service charges shall be pledged for the repayment of such the loan together with all interest, fees and charges thereon and all other financial obligations of such the governmental agency under the loan agreement; and
(4) The agreement of the governmental agency to comply with all applicable laws, rules and regulations issued by the authority or other state, federal and local bodies in regard to the construction, operation, maintenance and use of the project. §22C-1-27. Authorized limit on borrowing.
The aggregate principal amount of bonds and notes issued by the authority shall not exceed two three hundred million dollars outstanding at any one time: Provided, That in computing the total amount of bonds and notes which may at any one time be outstanding, the principal amount of any outstanding bonds or notes refunded or to be refunded either by application of the proceeds of the sale of any refunding bonds or notes of the authority or by exchange for any such refunding bonds or notes, shall be excluded.