H. B. 2891
(By Delegates Michael, Mezzatesta, Jenkins, Leach, Farris,
Compton and Leggett)
(Originating in the Committee on Finance)
[April 3, 1997]
A Bill to amend and reenact section nineteen, article six,
chapter twelve of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, increasing the amount
of borrowing authorized from the consolidated fund by the
state building commission for regional jail construction.
Be it enacted by the Legislature of West Virginia:
That section nineteen, article six, chapter twelve of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 6. WEST VIRGINIA STATE BOARD OF INVESTMENTS.
§12-6-19. Authorization for loans by the state board of
investments.
(a) The state board of investments, upon request of the
state building commission, shall transfer moneys as a loan to the
state building commission in an amount not to exceed in the
aggregate twenty-one million dollars for the purposes of
financing or refinancing the projects specified in subsections (b) and (d), section eight, article six, chapter five of this
code. The money borrowed shall bear interest during the term of
the loan at a fixed rate not to exceed the interest rate on
treasury notes, bills or bonds of the same term as the term of
the loan the week of closing on the loan as reported by the
treasury of the United States. Loans made under this subsection
shall be repaid in regular monthly or semiannual payments and
shall be paid in full not later than twenty-five years from the
date the loans are made with terms and conditions mutually agreed
upon by the state building commission and the state board of
investments.
(b) The state board of investments shall upon request of
the state building commission transfer moneys as a loan to the
state building commission in an amount not to exceed in the
aggregate eighty one hundred twenty million dollars for the
purposes of financing construction of regional jails,
correctional facilities, or building extensions or improvements
to regional jails and correctional facilities. Prior to the
expenditure of any loan proceeds, the regional jail and
correctional facility authority shall certify a list of projects
to the state building commission and the joint committee on
government and finance that are to be funded from loan proceeds.
This certified list cannot thereafter be altered or amended other
than by legislative enactment. Upon receipt of the certified
list of projects, the state building commission shall transfer
the loan proceeds to the regional jail and correctional facility authority. The money borrowed shall bear interest during the
term of the loan at a fixed rate not to exceed the interest rate
on treasury notes, bills or bonds of the same term as the term of
the loan the week of closing on the loan as reported by the
treasury of the United States.
(c) Loans made under this section for the projects
specified in subsection (b) of this section and in subsection
(d), section eight, article six, chapter five of this code, shall
be repaid in annual payments of not less than twelve million
dollars per year by appropriation of the Legislature to the board
of investments. The amount transferred for loans under
subsection (a) or (b) of this section shall not exceed that
amount which the board of investments determines is reasonable
given the cash flow needs of the consolidated fund. The board
shall make transfers for loans first for the project specified in
subsection (d), section eight, article six, chapter five of this
code, second for the projects specified in subsection (b) of this
section and third for projects specified in subsection (b),
section eight, article six, chapter five of this code, which are
in imminent danger of default in payment. The board shall take
the steps necessary to increase the liquidity of the consolidated
fund over a period of the next five years to allow for the loans
provided in this section without increasing the risk of loss in
the consolidated fund.