COMMITTEE SUBSTITUTE
FOR
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:
ARTICLE 1. WATER DEVELOPMENT AUTHORITY.
§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.