HOUSE CONCURRENT RESOLUTION NO. 58
(By Mr. Speaker, Mr. Kiss, and Delegates Campbell,
Michael, Mezzatesta, Warner, Varner, Williams, Beane, Ennis,
R. M. Thompson, Pino, Kominar, Staton, Tucker and Hall)
[Introduced February 26, 2003; referred to
the Committee on Finance.]
Providing for the issuance of bonds pursuant to article eight,
chapter twelve of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, in an amount not to exceed
three billion nine hundred million dollars.
Resolved by the Legislature of West Virginia:
That bonds authorized by article eight, chapter twelve of the
code of West Virginia in the principal amount not to exceed three
billion nine hundred million dollars are authorized to be sold by
the Governor during the fiscal year ending the thirtieth day of
June, two thousand three and during each fiscal year thereafter,
but no bonds, other than refunding bonds issued pursuant to section
nine, article eight, chapter twelve thereof may be sold after the
fourteenth day of February, two thousand eight.
The terms of the bonds shall be those set forth by the
Governor, either in the executive order authorizing the issuance of
the bonds or by the execution and delivery by the governor of a
trust indenture or agreement authorized in such executive order,
and within that executive order or trust indenture or agreement the
Governor shall stipulate the form of the bonds, whether the bonds are to be issued in one or more series, the date or dates of issue,
the time or times of maturity, which shall not exceed the longest
remaining term of the current amortization schedules for the
unfunded actuarial accrued liability, the rate or rates of interest
payable on the bonds, which may be at fixed rates and which
interest may be current interest or may accrue, the denomination or
denominations in which the bonds are issued, the conversion or
registration privileges applicable to some or all of the bonds, the
sources and medium of payment and place or places of payment, the
terms of redemption, any privileges of exchangeability or
interchangeability applicable to the bonds, and the entitlement of
obligation holders to priorities of payment or security in the
amounts deposited in the pension liability redemption fund. The
terms of the bonds shall require that for a period of no less than
five years from the date of issuance of the bonds, the aggregate of
each year's annual pension liability redemption payments as defined
in section three, article eight, chapter twelve of the code of West
Virginia shall be no less than the aggregate of that year's
projected annual contribution to each of the affected systems as
set forth in the amortization schedules stated in the actuarial
valuations of the affected systems as of the first day of July, two
thousand two, that were prepared at the request of and delivered to
the West Virginia Consolidated Public Retirement Board in December,
two thousand two, by its actuarial consultants. Bonds shall be signed by the Governor and attested by the Secretary of State, by
either manual or facsimile signatures.
The Governor shall sell these bonds at such time or times, in
such amounts, not exceeding the aggregate principal sum of three
billion nine hundred million dollars, at such prices as he may
determine necessary to provide funds for the purpose of redeeming
a previous liability of the state by funding all or a portion of
the aggregate of the unfunded actuarial accrued liabilities of the
Judges' Retirement System, the Death, Disability and Retirement
Fund of the Department of Public Safety, and the Teachers
Retirement System of the state and funds for the issuance costs of
the bonds, which bonds shall be payable from and secured by moneys
deposited in the pension liability redemption fund.
Before the sale of any bonds authorized herein and before
signing any bonds, the Governor shall first make a written finding
and deliver a copy in writing of that finding to the State
Treasurer, the Secretary of State, the Speaker of the House of
Delegates, and the President of the Senate that: (i) The true
interest cost of the bonds is at least thirty basis points less
than the assumed actuarial interest rate used to calculate the
unfunded actuarial accrued liability; and (ii) that the issuance of
the bonds will not in any manner cause a down grade or reduction in
the state's general obligation credit rating by standard bond
rating agencies. Before the sale of any bonds authorized herein and before the Governor may sign the bonds, the investment
management board shall prepare and provide to the Governor, the
State Treasurer, the Secretary of State, the President of the
Senate, and the Speaker of the House of Delegates a report
detailing the board's plan of investment for the proceeds of bonds
that are sold.
The maximum costs associated with the issuance of bonds,
excluding fees for bond insurance, credit enhancement and liquidity
facilities, plus underwriter's discount and any other costs
associated with the issuance may not exceed, in the aggregate, the
sum of one percent of the aggregate principal amount of bonds
issued, the payment of such costs to be subject to final approval
by the review committee established pursuant to section four,
article eight, chapter twelve of the code of West Virginia.
The issuance of the bonds shall comply with the provisions of
the Code of West Virginia. The proceeds from the sale of bonds,
other than refunding bonds, issued pursuant to article eight,
chapter twelve of the Code of West Virginia, after payment of any
costs payable at time of issuance of such bonds, shall be paid to
the Consolidated Public Retirement Board to redeem the unfunded
actuarial accrued liability described herein, which is a previous
liability of the state, by funding the amount of the unfunded
actuarial accrued liability provided for by such bonds, and
allocated on a pro rata basis among the affected systems in accordance with the percentage each system's unfunded actuarial
accrued liability to bears to the aggregate of the affected
systems' unfunded actuarial accrued liability as set forth in the
amortization schedules stated in the actuarial valuations of the
affected systems as of the first day of July, two thousand two,
that were prepared at the request of and delivered to the West
Virginia Consolidated Public Retirement Board in December, two
thousand two, by its actuarial consultants.
Email
Webmaster | © 2024 West Virginia Legislature **
