Introduced Version
House Bill 2037 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2037
(By Mr. Speaker, Mr. Chambers, and Delegate Ashley)
[By Request of the Executive]
[Introduced January 16, 1995; referred to the
Committee on Finance.]
A BILL to amend and reenact sections three, nine and sixteen,
article fifteen-a, chapter thirty-one of the code of West
Virginia, one thousand nine hundred thirty-one, as amended;
and to further amend said chapter by adding thereto a new
article, designated article fifteen-b, all relating to
authorizing the sale of bonds by the water development
authority for infrastructure purposes; providing definitions;
providing for the deposit of proceeds in the infrastructure
fund derived from the sale of state bonds; providing for
disbursements to pay debt service on infrastructure general
obligation and revenue bonds; empowering the West Virginia
water development authority to issue infrastructure general
obligation bonds, revenue bonds and refunding bonds; creating
the general obligation and revenue infrastructure debt service
funds, funding the general obligation and revenue
infrastructure debt service funds, establishing a trustee for
infrastructure revenue bondholders and the contents of trust agreements; legal remedies of infrastructure revenue
bondholders or noteholders and trustees; prohibiting funds
inuring to the benefit of or being distributable to directors
or officers; transactions between the council and West
Virginia water development authority and directors or officers
having certain interests in such transactions; infrastructure
general obligation and revenue bonds lawful investments;
purchasing and canceling notes or bonds; refunding bonds;
providing that infrastructure revenue bonds or notes not debt
of state, county municipality or of any political subdivision;
infrastructure general obligation and revenue bonds or notes
exemption from taxation; and the termination of dissolution;
providing terms for general obligation bonds; providing for
transfer and registration fees; setting forth a cap on the
interest rate of bonds; setting forth the form of general
obligation bond and coupon; requiring the listing of bonds;
directing the use of funds deposited in general obligation
debt service account; setting forth the covenants of the
state; providing for the sale of general obligation bonds and
their minimum price; providing for plates to be property of
the state; making the water development authority the
custodian of unsold bonds; authorizing interim certificates;
allowing the council to engage financial and legal advisors;
allowing the payment of expenses.
Be it enacted by the Legislature of West Virginia:
That sections three, nine and sixteen, article fifteen-a, chapter thirty-one, of the code of West Virginia one thousand nine
hundred thirty-one as amended, be amended and reenacted; and that
said chapter be further amended by adding thereto a new article,
designated article fifteen-b, all to read as follows:
§31-15A-3. West Virginia infrastructure and jobs development
council created; members of council; staff of
council.
(a) There is hereby created the West Virginia infrastructure
and jobs development council. The council shall be a governmental
instrumentality of the state. The exercise by the council of the
powers conferred by this article and the carrying out of its
purpose and duties shall be considered and held to be, and are
hereby determined to be, essential governmental functions and for
a public purpose.
(b) The council shall consist of nine eleven members,
including the executive director of the housing development fund or
his or her designee, the director of the division of environmental
protection or his or her designee; the director of the economic
development authority or his or her designee; the director of the
water development authority or his or her designee, the executive
director of the state development office or his or her designee;
the director of the division of health or his or her designee, the
chairman of the public service commission or his or her designee;
and two four members representing the general public: Provided,
That no more than two of the members representing the general
public shall be residents of the same congressional district. The governor shall appoint the public members of the council who shall
serve three-year staggered terms. The commissioner of the division
of highways, the executive director of the state rail authority,
two members of the West Virginia Senate, two members of the West
Virginia House of Delegates, one representative of the board of
directors of the state college system and one representative of the
board of trustees of the university of West Virginia shall serve as
advisory members of the council. The governor shall appoint the
legislative members of the council: Provided, That no more than
three of the legislative members may be of the same political
party. The governor shall appoint the representatives of the
governing boards from a list of three names submitted by each
governing board. The advisory members shall be ex officio,
nonvoting members of the council.
(c) The council shall annually elect one of its members as
chairman, and shall appoint a secretary, who need not be a member
of the council and who shall keep records of its proceedings. Five
members of the council shall constitute a quorum and the
affirmative vote of at least the majority of those members present
shall be necessary for any action taken by vote of the council. No
vacancy in the membership of the council impairs the rights of a
quorum by such vote to exercise all the rights and perform all the
duties of the council.
(d) No member of the council who serves by virtue of his or
her office shall receive any compensation or reimbursement of
expenses for serving as a member. The public members of the council shall receive reimbursement for his or her actual expenses
incurred in the service of the council.
(e) The council shall meet at least monthly to review projects
and infrastructure projects requesting funding assistance and
otherwise to conduct its business, and shall meet more frequently
if it considers it necessary.
(f) The water development authority shall provide office space
for the council, and each governmental agency represented on the
council shall provide staff support for the council in the manner
determined by the council from time to time.
(g) The council shall invite to all its meetings one or more
representatives of the United States department of agriculture, the
farmers home administration, the United States economic development
agency and the United States army corps of engineers or any
successors thereto.
§31-15A-9. Infrastructure fund; deposits in fund; disbursements
to provide loans, loan guarantees, grants and other
assistance; loans, loan guarantees, grants and other
assistance shall be subject to assistance
agreements.
(a) There is hereby created a special revenue account in the
state treasury to be appropriated by the Legislature for use by the
water development authority, which shall be designated and known as
the "West Virginia infrastructure fund." The infrastructure fund
shall consist of sub-accounts, as deemed necessary by the council,
for the deposit of (1) infrastructure revenues; (2) any appropriations, grants, gifts, contributions, loan proceeds or
other revenues received by the infrastructure fund from any source,
public or private; (3) amounts received as payments on any loans
made by the water development authority to pay for the cost of a
project or infrastructure project; (4) insurance proceeds payable
to the water development authority or the infrastructure fund in
connection with any infrastructure project or project; (5) all
income earned on moneys held in the infrastructure fund; (6) all
funds deposited in accordance with section sixteen of this article;
and (7) all proceeds derived from the sale of state bonds issued
pursuant to any resolution or act of the legislature carrying into
effect the infrastructure amendment.
Any money collected from any aforesaid sources shall be paid
into the state treasury by the state agent or entity charged with
the collection of the same, credited to the infrastructure fund,
and used only for purposes named in this article, as directed by
the council.
Amounts in the infrastructure fund shall be segregated and
administered by the water development authority separate and apart
from its other assets and programs. Amounts in the infrastructure
fund may not be transferred to any other fund or account or used,
other than indirectly, for the purposes of any other program of the
water development authority, except that the water development
authority may use funds in the infrastructure fund to reimburse
itself for any administrative costs incurred by it and approved by
the council in connection with any loan, loan guarantee, grant or other funding assistance made by the water development authority
pursuant to this article.
(b) Notwithstanding any provision of this code to the
contrary, amounts in the infrastructure fund may be deposited by
the water development authority in one or more banking institutions
located in this state and selected by the water development
authority. Pending the disbursement of any money from the
infrastructure fund as authorized under this section, the water
development authority shall invest and reinvest the moneys subject
to the limitations set forth in article eighteen, chapter
thirty-one of this code.
(c) To further accomplish the purposes and intent of this
article, the water development authority may pledge infrastructure
revenues and from time to time establish one or more restricted
accounts within the infrastructure fund for the purpose of
providing funds to guarantee loans for infrastructure projects or
projects: Provided, That for any fiscal year the water development
authority may not deposit into the restricted accounts more than
twenty percent of the aggregate amount of infrastructure revenues
deposited into the infrastructure fund during the fiscal year. No
loan guarantee shall be made pursuant to this article unless
recourse under the loan guarantee is limited solely to amounts in
the restricted account or accounts. No person shall have any
recourse to any restricted accounts established pursuant to this
subsection other than those persons to whom the loan guarantee or
guarantees have been made.
(d) Each loan, loan guarantee, grant or other assistance made
or provided by the water development authority shall be evidenced
by a loan, loan guarantee, grant or assistance agreement between
the water development authority and the project sponsor to which
the loan, loan guarantee, grant or assistance shall be made or
provided, which agreement shall include, without limitation and to
the extent applicable, the following provisions:
(1) The estimated cost of the infrastructure project or
project, the amount of the loan, loan guarantee or grant or the
nature of the assistance, and in the case of a loan or loan
guarantee, the terms of repayment and the security therefor, if
any;
(2) The specific purposes for which the loan or grant proceeds
shall be expended or the benefits to accrue from such loan
guarantee or other assistance, and the conditions and procedure for
disbursing loan or grant proceeds;
(3) The duties and obligations imposed regarding the
acquisition, construction, improvement or operation of the project
or infrastructure project; and
(4) The agreement of the governmental agency to comply with
all applicable federal and state laws, and all rules and
regulations issued or imposed by the water development authority or
other state, federal or local bodies regarding the acquisition,
construction, improvement or operation of the infrastructure
project or project and granting the water development authority the
right to appoint a receiver for the project or infrastructure if the project sponsor should default on any terms of the agreement.
(e) Any resolution of the water development authority
approving loan, loan guarantee, grant or other assistance shall
include a finding and determination that the requirements of this
section have been met.
§31-15A-16. Dedication of severance tax proceeds.
(a) There shall be dedicated an annual amount from the
collections of the tax collected pursuant to article thirteen-a,
chapter eleven of this code for the construction, extension,
expansion, rehabilitation, repair and improvement of water supply
and sewage treatment systems and for the acquisition, preparation,
construction and improvement of sites for economic development in
this state as provided in this article.
(b) Notwithstanding any other provision of this code to the
contrary, beginning on the first day of July, one thousand nine
hundred ninety-five, the first sixteen million dollars of the tax
collected pursuant to article thirteen-a, chapter eleven of this
code shall be deposited to the credit of the West Virginia
infrastructure fund created pursuant to section nine of this
article: Provided, That none of the collections from the tax
imposed pursuant to section six, article thirteen-a, chapter eleven
of this code shall be so dedicated or deposited: Provided,
however, That the portion of the tax imposed by article thirteen-a,
chapter eleven and dedicated for purposes of medicaid and the
division of forestry pursuant to section twenty-a of said article
thirteen-a shall remain dedicated for the purposes set forth in said section twenty-a.
(c) On or before the first day of May of each year, commencing
the first day of May, one thousand nine hundred ninety-five, the
council, by resolution, shall certify to the treasurer the
principal and interest coverage ratio and amount for the following
fiscal year on any infrastructure general obligation bonds issued
on or after the effective date of this legislation. Upon this
certification, the treasurer shall transfer an amount from the
infrastructure fund, as created in section nine of this article, to
the infrastructure general obligation debt service account, as
created in section two, article fifteen-b, of this chapter.
Article 15B. Infrastructure Bonds.
§31-15B-1. Definitions.
For purposes of this article and article fifteen-a of this
chapter:
(a) "Infrastructure amendment" means the amendment to the
Constitution of this State entitled "infrastructure amendment" as
approved by referendum in the month of November, one thousand nine
hundred ninety-four;
(b) "Infrastructure general obligation bond" means any bond
of bonds issued by the state pursuant to any resolution or act of
the legislature carrying into effect the "Infrastructure Amendment"
to the Constitution of this State, approved by referendum in the
month of November, one thousand nine hundred ninety-four;
(c) "Infrastructure revenue bond" means a revenue bond, note
or other obligation issued by the West Virginia water development authority pursuant to this article, including bonds or notes to
refund such bonds or renew notes, and notes issued in anticipation
of and payable from the proceeds of such bonds; and
(d) "Water development authority" means the West Virginia
water development authority established under article five-c,
chapter twenty of this code, or any successor to all or any
substantial part of its powers and duties.
§31-15B-2. West Virginia water development authority empowered to
issue infrastructure revenue bonds and refunding
bonds; creation of infrastructure debt service fund;
funding of infrastructure debt service fund;
requirements and manner of such issuance.
(a) To accomplish the purpose and intent of this article, the
West Virginia water development authority is hereby empowered to
issue from time to time infrastructure revenue bonds in such
principal amounts as the council deems necessary to make loans,
loan guarantees and grants and other forms of financial assistance
to project sponsors for one or more projects: Provided, that the
West Virginia water development authority may not issue any such
bonds (other than refunding bonds) unless the council by resolution
determines that the aggregate cost of the projects expected to be
constructed during any annual period exceeds the projected annual
infrastructure revenues for the same period, and principal and
interest payments due the council on all outstanding loans to
projects previously made by the council.
(b) The proceeds of infrastructure revenue bonds or notes shall be used solely for the purpose of making loans, loan
guarantees and grants and other forms of financial assistance to
project sponsors for one or more projects and shall be deposited in
one or more special accounts with the trustee under the trust
agreement securing such bonds or notes and disbursed from time to
time for projects as determined by the council.
(c) The council may not authorize the disbursement of any
proceeds of infrastructure revenue bonds unless it shall have
received documentation sufficient to allow it to determine that
such distribution is consistent with the purposes and intent of the
article.
(d) There is hereby created a special account in the state
treasury, which shall be designated and known as the "West Virginia
Infrastructure Revenue Bond Debt Service Fund," into which shall be
deposited the amounts certified by the executive director of the
West Virginia water development authority as necessary to pay the
principal, premium, if any, and interest on infrastructure revenue
bonds or notes and any reserve requirements, subject to the terms
of any agreement with the holders of the infrastructure bonds. All
amounts deposited in the infrastructure debt service fund shall be
pledged to the repayment of the principal, interest and redemption
premium, if any, on any infrastructure revenue bonds or notes or
refunding revenue bonds authorized by this article: Provided, That
amounts on deposit in such fund may be used to establish or
maintain reserves created for the purposes of securing such bonds
or notes. Such pledge shall be valid and binding from the time the pledge is made, and the infrastructure debt service fund so pledged
shall immediately be subject to the lien of such pledge without any
physical delivery thereof or further act, and the lien of any such
pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract or otherwise against the West
Virginia water development authority irrespective of whether such
parties have notice thereof.
(e) Except as may otherwise be expressly provided in this
article or by the West Virginia water development authority by
resolution, every issue of infrastructure revenue bonds or notes
shall be special obligations of the West Virginia water development
authority payable solely from amounts in the infrastructure debt
service fund and infrastructure fund, and the reserves created for
such purposes by the West Virginia water development authority,
without preference or priority among the bonds regardless of when
issued, subject only to any agreements with the holders of any such
bonds or notes to the contrary. All such bonds and notes are
hereby declared to be negotiable instruments.
(f) The infrastructure revenue bonds, notes, bond
anticipation notes and refunding bonds shall be authorized by
resolution of the West Virginia water development authority, shall
bear such date and shall mature at such time, in case of any such
bond not exceeding fifty years from the date of issue, as such
resolution may provide. The infrastructure revenue bonds or notes
shall bear interest at such rate or rates, including variable
rates, taxable or tax-exempt, be in such denominations, be in registered form, carry such registration privileges, be payable in
such medium of payment, in such place and be subject to such terms
of redemption as the West Virginia infrastructure revenue bonds or
notes may be sold by the West Virginia water development authority
at public or private sale, at the price the West Virginia water
development authority determines. The bonds or notes shall be
executed by the chairman or the executive director of the West
Virginia water development authority who may use a facsimile
signature. The official seal of the West Virginia water
development authority or a facsimile thereof shall be affixed
thereto or printed thereon and attested, by manual or facsimile
signature by the secretary or assistant secretary of the West
Virginia water development authority. If any officer whose
signature, or a facsimile of whose signature appears on any bonds
or notes ceases to be such officer before delivery of such bonds,
such signature or facsimile is nevertheless sufficient for all
purposes to the same extent as if he or she had remained in office
until such delivery, and if the seal of the West Virginia water
development authority has been changed after a facsimile has been
imprinted on such bonds, such facsimile will continue to be
sufficient for all purposes.
(g) Any resolution authorizing any infrastructure revenue
bonds or notes may contain provisions (subject to such agreements
with bondholders or noteholders as may then exist, which provisions
shall be a part of the contract with the holder thereof) with
respect to the pledge of or other use and disposition of infrastructure revenues; the setting aside of reserve funds;
limitations on the purpose to which the proceeds of sale of bonds
or notes may be applied; notes issued in anticipation of the
issuance of bonds; the agreement of the West Virginia water
development authority to do all things necessary for the
authorization, issuance and sale of such bonds in such amounts as
may be necessary for the timely retirement of such notes;
limitations on the issuance of additional bonds or notes; the terms
upon which additional bonds or notes may be issued and secured; the
refunding of outstanding bonds or notes; the procedures, if any, by
which the terms of any contract with bondholders or noteholders may
be amended or abrogated; the amount of bonds or notes the holders
of which must consent thereto and the manner in which such consent
may be given; and any other matter, which in any way affects the
security for or protection of the bonds or notes.
(h) In the event that the sum of all reserves pledged to the
payment of such bonds or notes shall be less than the minimum
reserve requirements established in any resolution or resolutions
authorizing the issuance of such bonds or notes, the chairman or
the executive director of the council shall certify, on or before
the first day of December of each year, the amount of such
deficiency to the governor of the state for inclusion, if the
governor shall so elect, of the amount of such deficiency in the
budget to be submitted to the next session of the Legislature for
appropriation to the council to be pledged for payment of such
bonds or notes: Provided, That the Legislature shall not be required to make any appropriations so requested, and the amount of
such deficiencies shall not constitute a debt or liability of the
state.
(i) Neither the officers or directors of the West Virginia
water development authority not any person executing the
infrastructure revenue bonds or notes shall be liable personally on
the bonds or notes or be subject to any personal liability or
accountability by reason of the issuance thereof.
§31-15B-3. Trustee for infrastructure revenue bondholder; contents
of trust agreement.
(a) Any infrastructure revenue bonds or notes or
infrastructure revenue refunding bonds issued by the West Virginia
water development authority under this article shall be secured by
a trust agreement between the West Virginia water development
authority and a corporate trustee, which trustee may be any trust
company or banking institution having the powers of a trust company
within this state.
(b) Any such trust agreement may pledge or assign
infrastructure revenues of the West Virginia water development
authority to be received. Any such trust agreement or any
resolution providing for the issuance of such bonds or notes may
contain such provisions for protecting and enforcing the rights and
remedies of the bondholders or noteholders as are reasonable and
proper and not in violation of law, including the provisions
contained in section eleven of this article and covenants setting
forth the duties of the council in relation to provisions regarding the payment of the principal of and interest, charges and fees on
loans made to, or bond purchases from, governmental agencies from
the proceeds of such bonds or notes, the custody, safeguarding and
application of all moneys. Any banking institution or trust
company incorporated or authorized to do business in this state
under the laws of this state which may act as depository of the
proceeds of bonds or notes or of the infrastructure debt service
fund shall furnish such indemnifying bonds or pledge such
securities as are required by the West Virginia water development
authority. Any such trust agreement may set forth the rights and
remedies of the bondholders and noteholders and of the trustee and
may restrict individual rights of action by bondholders and
noteholders as customarily provided in trust agreements or trust
indentures securing similar bonds. Such trust agreement may
contain such other provisions as the West Virginia water
development authority deems reasonable and proper for the security
of the bondholders or noteholders. All expenses incurred in
carrying out the provisions of any such trust agreement may be
treated as part of the cost of the construction, renovation,
repair, improvement or acquisition of a project.
§31-15B-4. Legal remedies of infrastructure revenue bondholders or
noteholders and trustees.
Any holder of infrastructure revenue bonds or notes issues
pursuant to this article and the trustee under any trust agreement,
except to the extent the rights given by this article may be
restricted by the applicable resolution or trust agreement, may by civil action, mandamus or other proceedings protect and enforce any
rights granted under the laws of this state or granted under this
article, by the trust agreement or by the resolution in the
issuance of such bonds or notes, and may enforce and compel the
performance of all duties required by this article, pursuant to the
trust agreement or resolution, to be performed by the West Virginia
water development authority or the council or any officer thereof.
§31-15B-5. Prohibition on funds inuring to the benefit of or
being distributable to directors or officers;
transactions between the council and West Virginia
water development authority and directors or
officers having certain interests in such
transactions.
No part of the infrastructure fund shall inure to the benefit
of or be distributable to the commissioners of the public service
commission, the council, or the West Virginia water development
authority's directors or officers. The council may make loans and
exercise its other powers as previously specified in furtherance of
its corporate purpose: Provided, That no such loans shall be made,
and no property shall be purchased or leased from, or sold, leased
or otherwise disposed of, to any commissioner, director or officer
of the council or the public service commission or the West
Virginia water development authority.
§31-15B-6. Infrastructure revenue bonds lawful investments.
All infrastructure revenue bonds issued pursuant to this
article shall be lawful investments for banking institutions, societies for savings, building and loan associations, savings and
loan associations, deposit guarantee associations, trust companies,
insurance companies, including domestic for life and domestic not
for life insurance companies.
§31-15B-7. Purchase and cancellation of notes or bonds.
(a) The West Virginia water development authority, subject to
such agreements with noteholders or bondholders as may then exist,
shall have the poser, from any funds available therefor, to
purchase infrastructure revenue bonds or notes of the West Virginia
water development authority.
(b) If the infrastructure revenue bonds or notes are then
redeemable, the price of such purchase shall not exceed the
redemption price then applicable plus accrued interest to the next
interest payment date thereon. If the infrastructure revenue bonds
or notes are not then redeemable, the price of such purchase shall
not exceed the redemption price applicable on the first date after
such purchase upon which the bonds become subject to redemption
plus accrued interest to such date. Upon such purchase such bonds
or notes shall be canceled.
§31-15B-8. Refunding bonds.
Any infrastructure revenue bonds issued hereunder and at any
time outstanding may at any time and from time to time be refunded
by the West Virginia water development authority by the issuance of
its refunding bonds in such amount as it may deem necessary to
refund the principal of the bonds to be refunded, together with any
unpaid interest thereon; to provide additional funds for the purpose of the West Virginia water development authority to
accomplish the purpose of this article; and to pay any premiums and
commissions necessary to be paid in connection therewith. Any such
refunding may be effected whether the infrastructure revenue bonds
to be refunded shall have then matured or shall thereafter mature:
Provided, That the holders of any infrastructure revenue bonds so
to be refunded shall not be compelled without their consent to
surrender their infrastructure revenue bonds for payment or
exchange prior to the date on which they are payable or, if they
are called for redemption, prior to the date on which they are by
their terms subject to redemption. Any refunding bonds issued
pursuant to this article shall be payable from the infrastructure
debt service fund, and shall be subject to the provisions contained
in section eleven of this article and shall be secured in
accordance with the provisions of sections eleven and twelve of
this article.
§31-15B-9. Infrastructure revenue bonds or notes not debt of
state, county municipality or of any political
subdivision.
Infrastructure revenue bonds or notes and infrastructure
revenue refunding bonds issued under the authority of this article
shall not constitute a debt or a pledge of the faith and credit or
taxing power of this state or of any county, municipality or any
other political subdivision of this state, and the holders or
owners thereof shall have no right to have taxes levied by the
Legislature or taxing authority of any county, municipality or any other political subdivision of this state for the payment of the
principal thereof or interest thereon, but such bonds shall be
payable solely from the revenues and funds pledged for their
payment as authorized by this article, unless the notes are issued
in anticipation of the issuance of bonds or the bonds ar refunded
by refunding bonds issued under authority of this article, which
infrastructure refunding bonds shall be payable solely from
revenues and funds pledged for their payment as authorized by this
article. All such bonds and notes shall contain on the face
thereof a statement to the effect that the bonds or notes, as to
both principal and interest, are not debts of the state or any
county, municipality or political subdivision thereof, but are
payable solely from revenues and funds pledged for their payment.
§31-15B-10. Infrastructure revenue bonds or notes exemption from
taxation.
The exercise of the powers granted to the West Virginia water
development authority by this article will be in all respects for
the benefit of the people of the state, for the improvement of
their health, safety, convenience and welfare and for the
enhancement of their residential, agricultural, recreational,
economic, commercial and industrial opportunities and is for a
public purpose. As the construction, acquisition, repair or
renovation of infrastructure projects will constitute the
performance of essential governmental functions, the West Virginia
water development authority shall not be required to pay any taxes
or assessments upon any project or upon any property acquired or used by the West Virginia water development authority or upon the
income therefrom. The infrastructure revenue bonds and notes and
the infrastructure refunding bonds and all interest and income
thereon shall be exempt from all taxation by this state, or any
county, municipality, political subdivision or agency thereof,
except inheritance taxes.
§31-15B-11. Termination of dissolution.
Upon the termination or dissolution of the West Virginia water
development authority, all rights and properties of the West
Virginia water development authority with respect to the
infrastructure fund shall pass to and be vested in the state,
subject to the rights of bondholders, lienholders and other
creditors.
§31-15B-12. Infrastructure general obligation bonds; amount; when
may issue.
Bonds of the state of West Virginia, under authority of the
Infrastructure Improvement Amendment of 1994, of the par value not
to exceed in the aggregate three hundred million dollars, are
hereby authorized to be issued and sold solely for the
construction, extension, expansion, rehabilitation, repair and
improvement of water supply and sewage treatment systems and for
the acquisition, preparation, construction and improvement of sites
for economic development as provided for by the constitution and
the provisions of this article. Such bonds may be issued by the
governor in such amounts, in coupons or registered form, in such
denominations, at such time, bearing such date or dates as the infrastructure council may determine by resolution which justifies
the issuance by the governor of said bonds, and shall become due
and payable serially, annually or semiannually, in such amounts and
mature in such years as the council may determine by resolution and
certify to the governor: Provided, That in no event may the amount
of bonds outstanding exceed an amount for which sixteen million
dollars would not be sufficient to service the total amount of debt
outstanding: Provided, however, That the bonds shall mature within
and not exceeding thirty years from their date. The water
development authority must offer the bonds for competitive bids
from recognized financial investment institutions before the bonds
may be sold.
§31-15B-13. Infrastructure General Obligation Debt Service Account;
sources used to pay bonds and interest;
investment of
remainder.
Into the infrastructure general obligation debt service
account there shall be paid all money from any and all
appropriations made by the state from and moneys transferred
pursuant to the provisions of section sixteen, article fifteen-a,
chapter thirty-one for the purpose of paying the interest on such
bonds or paying off and retiring the bonds, from transfer and
registration fees as herein provided, and from any other source
whatsoever which is made liable by law for the payment of the
principal of such bonds or the interest thereon.
All these funds shall be kept by the treasurer in a separate
account, under the designation aforesaid, and all moneys belonging to the fund shall be deposited in the state treasury to the credit
thereof.
Such fund shall be applied by the water development authority
of the state first to the payment of the semiannual interest on
such bonds as it shall become due as herein provided. The
remainder of the fund shall be deposited to the credit of the
infrastructure fund and the council shall have the duty it shall be
to invest the same obligations of the government of the United
States, bonds of the state of West Virginia, or any political
subdivision thereof: Provided, That the bonds or other obligations
so purchased by the water development authority shall mature so as
to provide sufficient money to pay off all bonds herein provided to
be issued as they become due; and the moneys so paid into the
infrastructure debt service fund under the provisions of this act
shall be expended for the purpose of paying the interest and
principal of the bonds hereby provided for as they severally become
due and payable and for no other purpose except that the fund may
be invested until needed, as herein provided.
§31-15B-14. Covenants of state.
The state of West Virginia covenants and agrees with the
holders of the bonds issued pursuant hereto as follows: (1) That
such bonds shall constitute a direct and general obligation of the
state of West Virginia; (2) that the full faith and credit of the
state is hereby pledged to secure the payment of the principal and
interest of such bonds; (3) that an annual state tax shall be
collected in an amount sufficient to pay as it may accrue the interest on such bonds and the principal thereof; and (4) that such
tax shall be levied in any year only to the extent that the moneys
transferred to the infrastructure general obligation debt service
account as provided in section sixteen, article fifteen-a, chapter
thirty-one of this code which are irrevocably set aside and
appropriated for an applied to the payment of the interest on and
principal of this bond becoming due and payable in such year are
insufficient therefor.
§31-15B-15. Sale by water development authority; minimum price.
The water development authority shall sell the bonds herein
authorized at such time or times as the council, by resolution, may
determine necessary to provide funds for purposes set forth in this
article and subject to the limitations contained in this act. sales
shall be at not less than par and accrued interest. All interest
coupons becoming payable prior to the sale date shall be cancelled
by the treasurer and rendered ineffective, before the delivery of
the bonds so sold.
§31-15B-16. Council to determine financial advisor.
The council shall, by resolution, employ a competent person or
firm to serve as financial advisor to the governor for the
issuance and sale of such bonds.
§31-15B-17. Council to determine bond counsel.
The council shall, by resolution, employ a competent person or
firm to serve as bond counsel who shall be responsible for the
issuance of a final approving opinion regarding the legality of the
sale of such bonds.
§31-15B-18. Approval and payment of all necessary expenses.
All necessary expenses, including legal expenses, incurred in
the execution of this act shall be paid out of the infrastructure
general obligation debt service account.
§31-15B-19. Disbursements to pay debt service on infrastructure
general obligation bonds.
There is hereby created a special account in the state
treasury, which shall be designated and known as the "West Virginia
Infrastructure General Obligation Debt Service Fund," into which
shall be deposited the amounts certified by the council pursuant to
the provisions of section sixteen, sub-section b of this article,
as well as, any amounts appropriated by the legislature.
NOTE: The purpose of this bill is to authorize the sale of
revenue bonds, refunding bonds and general obligation bonds. The
general obligations bond authorization is in response to the
electorate's support of Amendment 3 to the West Virginia
Constitution, as passed by referendum on November 8, 1994.
The bill adds definitions of "Infrastructure amendment,"
"Infrastructure general obligation bond," and "Infrastructure
revenue bond." Further, the definition of "State infrastructure
agency" is amended making it more specific and eliminating the
economic development authority.
The bill gives the council the ability to receive and properly
account for general obligation bond proceeds. A special account is
established for servicing the debt of any general obligation bond
issue. Section sixteen of the act is amended to command
certification by the council of yearly debt service needs of
general obligation bond issues.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added. Article fifteen-b is new, therefore underlining and
strike-throughs have been omitted.