HB3370 H ECON AM #1
Wilkinson 3909
The Committee on Economic Development & Tourism moved to amend the bill on page 1, by striking out all after the enacting clause, and inserting in lieu thereof the following:
CHAPTER 20. NATURAL RESOURCES.
ARTICLE 5A. STATE PARKS AND RECREATION ENDOWMENT FUND.
§20-5A-1. Establishment of fund; deposits; expenditures; investments.
(a) There is created in the office of the State Treasurer a special revenue account fund to be known as the West Virginia State Parks and Recreation Endowment Fund.
(b) The following shall be deposited into the fund:
(1) The royalties received from the leasing of state-owned gas, oil, and other mineral rights beneath the Ohio River and its tributaries; and
(2) The proceeds of any gifts, grants, contributions, or other moneys accruing to the state which are specifically designated for inclusion in the fund.
(c) Expenditures from the fund shall be for the purposes set forth in this section and are to be made in accordance with appropriation of the Legislature under the provisions of §12-3-1 et seq. of this code, and in compliance with the provisions of §11B-2-1 et seq. of this code: Provided, That income accruing from investments of the fund pursuant to this article shall be distributed or expended for either of the following purposes:
(1) Maintenance, repair, and improvement of any existing recreational facilities, including any supporting or related infrastructure and associated recreational features, all to provide uninterrupted enjoyment and public use of state parks, state forests, and state rail trails.
(2) Maintenance, repair, and procurement of any fixture, furnishing, and equipment necessary to provide uninterrupted enjoyment and public use of state parks, state forests, and state rail trails.
(e) The fund shall be utilized to facilitate or provide collateral for the State Parks Enhancement Loan Insurance Program established in §20-5A-3 of this code.
§20-5A-3. State Parks Enhancement Loan Insurance Program.
(a) Legislative findings and purpose.
(1) The Legislature finds that certain areas of the state currently have existing developments or attractions, including, but not limited to, developments in West Virginia State Parks and resorts that are constructed on U.S. Army Corps of Engineers property, wherein such attractions and developments are unable to serve as collateral for loans. Because of this, the expansion of tourism and development projects in these areas is severely restricted and/or significantly impeded.
(2) The purpose of this section is to establish the State Parks Enhancement Loan Insurance Program, which may provide for the guarantee of a loan made to an eligible entity to be used exclusively for further development on these properties to encourage economic development and tourism.
(b) Terms defined. – As used in this section, unless the context clearly indicates otherwise:
(1) “Board of trustees” means the board provided for in §20-5A-2 of this code.
(2) “Development project” means any new project being pursued by a private entity, which has established a partnership or agreement with the division to operate on U.S. Army Corps of Engineers property, State Parks and resorts property, any other property under the jurisdiction of the division, or on a hybrid tourism destination, for the purpose of increasing recreational opportunities, tourism, and economic development.
(3) “Director” means the director of the Division of Natural Resources.
(4) “Division” means the Division of Natural Resources.
(5) "Eligible entity" means any corporation, limited liability company, partnership, limited liability partnership, sole proprietorship, business trust, joint venture, or any other entity operating or intending to operate a development project, whether owned or leased, that receives the approval pursuant to this section to apply for the State Parks Enhancement Loan Insurance Program.
(6) “Program” means the State Parks Enhancement Loan Insurance Program.
(c) The State Parks Enhancement Loan Insurance Program may insure the payment or repayment of all or any part of the principal of, prepayment premiums or penalties on, and interest on any form of debt instrument entered into by an eligible entity with a financial institution, including, but not limited to, banks, insurance companies and other institutions in the business of lending money. Eligible entities must submit applications for loan insurance to the board of trustees. The board of trustees may, by a majority vote, approve or deny any application. If approved, the board of trustees shall enter into an insurance agreement with the eligible entity and any necessary financial institution.
(d) In order to effectuate the purposes of this section, the board of trustees shall cooperate with the West Virginia Economic Development Authority pursuant to §31-15-8b of this code. The board of trustees may utilize the staff and resources of the authority for guidance and assistance in administering the program.
(e) The board of trustees may, subject to a recommendation by the director, establish additional requirements and procedures for the issuance of loan insurance; including, but not limited to, setting the premiums and fees to be paid to it for providing financial assistance under this section. The premiums and fees set by the board of trustees shall be payable in the amounts, at the time, and in the manner that the board of trustees, in its sole and absolute discretion, requires. The premiums and fees need not be uniform among transactions and may vary in amount: (1) Among transactions; and (2) at different stages during the terms of transactions.
(f) The board of trustees may, in its sole and absolute discretion, require the security it believes sufficient in connection with its insuring of the payment or repayment of any bonds, notes, debt, or other instruments: Provided, That the board of trustees may not require a security interest in the development project when the eligible entity will not hold ownership on the real or personal property of the development project.
(g) The obligations of the board of trustees under any insurance agreement entered into pursuant to this article shall not constitute a debt or a pledge of the faith and credit or taxing powers of this state or of any county, municipality, or any political subdivision of this state for the payment of any amount due thereunder or pursuant thereto, but the obligations evidenced by such insurance agreement shall be payable solely from the funds pledged for their payment.
(h) The board of trustees may not authorize any amount of loan insurance through the program that exceeds the amount of funds, whether investment assets or cash, existing in the West Virginia State Parks and Recreation Endowment Fund. However, any amount of loan insurance issued by the board of trustees shall not require the encumbrance or otherwise segregation of funds within the West Virginia State Parks and Recreation Endowment Fund.
(i) The board of trustees may establish an application and additional procedures or guidelines for the program. Prior to submission of an application to the board of trustees, an eligible entity must receive approval in writing from the Secretary of the Department of Commerce, the Secretary of the Department of Economic Development, and the Secretary of the Department of Tourism.
(j) The West Virginia Department of Commerce shall maintain a list of approved projects utilizing this loan insurance program and shall submit this list to the Joint Committee on Government and Finance in the form of an annual report for legislative review.
CHAPTER 31. CORPORATIONS.
ARTICLE 15. WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY.
§31-15-8b. Facilitation of the State Parks Enhancement Loan Insurance Program.
The authority shall cooperate with the Division of Natural Resources to facilitate the administration of the State Parks Enhancement Loan Insurance Program established by §20-5A-3 of this code. The executive director shall make the authority’s staff available to provide guidance and assistance for the administration of the program. Any requirement or restriction on the authority’s loan insurance programs and other operations established by this article shall not be applicable to the administration of the State Parks Enhancement Loan Insurance Program.
Adopted
Rejected