Senate Bill No. 606
(By Senators Kessler (Acting President) and Hall,
By Request of the Executive)
[Originating in the Committee on Transportation and Infrastructure; reported February 25, 2011.]
A BILL to amend and reenact §17-16A-10 of the Code of West Virginia, 1931, as amended; and to amend and reenact §31-15A-11 of said code, all relating to providing funding and financing mechanisms for the parkways project along U. S. Route 35 in Putnam and Mason counties; allowing funds transferred from West Virginia Infrastructure Fund to be deposited into the U. S. Route 35 Toll Revenue Enhancement Fund for further deposit into a debt service reserve fund; requiring the general manager of the Parkways Authority to certify funding amounts in Debt Service Reserve Fund to certain persons on dates certain; creating the U. S. Route 35 Toll Revenue Enhancement Fund within the Parkways Authority; requiring the Parkways Authority to transfer moneys from the U. S. Route 35 Toll Revenue Enhancement Fund to the trustee of toll revenue bonds for deposit into a debt service reserve fund associated with toll revenue bonds; providing prepayment of bonds; providing for the removal of tolls upon the retiring of the toll revenue bonds; providing that subsequent to transfer of certain moneys from the West Virginia Infrastructure Fund into the West Virginia Infrastructure Lottery Revenue Debt Service Fund, other moneys in the West Virginia Infrastructure Fund be dedicated to maintaining the Debt Service Reserve Fund for the U. S. Route 35 parkways project before being dedicated to other infrastructure projects; and making technical corrections.
Be it enacted by the Legislature of West Virginia:
That §17-16A-10 of the Code of West Virginia, 1931, as amended and reenacted; and that §31-15A-11 of said code be amended and reenacted, all to read as follows:
CHAPTER 17. ROADS AND HIGHWAYS.
ARTICLE 16A. WEST VIRGINIA PARKWAYS, ECONOMIC DEVELOPMENT AND TOURISM AUTHORITY.
§17-16A-10. Parkway revenue bonds generally.
(a) The Parkways Authority is authorized to provide by resolution for the issuance of parkway revenue bonds of the state for the purpose of paying all or any part of the cost of one or more parkway projects: Provided, That this section shall may not be construed as authorizing the issuance of parkway revenue bonds for the purpose of paying the cost of the West Virginia Turnpike, which parkway revenue bonds may be issued only as authorized under section eleven of this article. The principal of and the interest on bonds shall be payable solely from the funds provided for payment, including any reserve funds established therefor. Parkway revenue bonds of the Parkways Authority issued to finance a portion of the costs of constructing a portion of the parkways project along U. S. Route 35 between West Virginia Route 859 in Putnam County and County Route 40 in Mason County shall be referred to in this section and in section eleven, article fifteen-a, chapter thirty-one of this code as “toll revenue bonds” of the Parkways Authority.
(b) The bonds of each issue shall be dated, shall bear interest at a rate as may be determined by the Parkways Authority in its sole discretion, shall mature at a time not exceeding forty years from their date or of issue as may be determined by the Parkways Authority, and may be made redeemable before maturity, at the option of the Parkways Authority at a price and under the terms and conditions as may be fixed by the Parkways Authority prior to the issuance of the bonds.
(c) The Parkways Authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at any bank or trust company within or without the state.
(d) The bonds shall be executed by manual or facsimile signature by the chair of the Parkways Authority, and the official seal of the Parkways Authority shall be affixed to or printed on each bond, and attested, manually or by facsimile signature, by the secretary and treasurer of the Parkways Authority. Any coupons attached to any bond shall bear the manual or facsimile signature of the chair of the Parkways Authority.
(e) In case If any officer whose signature or a facsimile of whose signature appears on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until delivery. In case If the seal of the Parkways Authority has been changed after a facsimile has been imprinted on the bonds, then the facsimile seal will continue to be sufficient for all purposes.
(f) All bonds issued under the provisions of this article shall have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the state. The bonds may be issued in coupon or in registered form, or both, as the Parkways Authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the recorders into coupon bonds of any bonds registered as to both principal and interest.
(g) The Parkways Authority may sell the bonds at a public or private sale at a price it determines to be in the best interests of the state.
(h) The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the parkway project or parkway projects for which the bonds were issued, and shall be disbursed in a manner consistent with the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds.
(i) If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than the cost, then additional bonds may in like manner be issued to provide the amount of the deficit. Unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds, the additional bonds shall be deemed considered to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued.
(j) If the proceeds of the bonds of any issue exceed the cost of the parkway project or parkway projects for which the bonds were issued, then the surplus shall be deposited to the credit of the sinking fund for the bonds.
(k) Prior to the preparation of definitive bonds, the Parkways Authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery. The Parkways Authority may also provide for the replacement of any bonds that become mutilated or are destroyed or lost.
(l) Bonds may be issued under the provisions of this article without obtaining the consent of any department, division, commission, board, bureau or agency of the state in accordance with this article: Provided, That the Parkways Authority shall comply with the provisions of section twenty-eight, article one, chapter five of this code.
(m) On or before May 1 of each year, the general manager of the Parkways Authority shall certify to the Director of the Water Development Authority and the Trustee of the Parkways Authority’s toll revenue bonds: (1) The amount required to be maintained in the debt service reserve fund established in conjunction with said toll revenue bonds; (2) the amount on deposit as of April 1 in said debt service reserve fund; and (3) the difference between the amounts specified in (1) and (2) above, if any.
(n) There is hereby created within the Parkways Authority a U. S. Route 35 Toll Revenue Enhancement Fund, which shall be administered by the Parkways Authority and accounted for by the Parkways Authority as a distinct fund separate and apart from all other funds and accounts of the Parkways Authority. The U. S. Route 35 Toll Revenue Enhancement Fund shall be an interest-bearing account with interest earned credited to and deposited back into said fund. All funds transferred to the Parkways Authority pursuant to subsection (b), section eleven, article fifteen-a, chapter thirty-one of this code shall be deposited by the Parkways Authority into the U. S. Route 35 Toll Revenue Enhancement Fund. Funds deposited into the U. S. Route 35 Toll Revenue Enhancement Fund shall be invested only in United States Treasury securities or other securities that constitute direct obligations of the United States of America or are directly guaranteed by the United States of America that in any case mature at least five business days prior to the next ensuing June 1.
(o) On or before June 1 of each year, the Parkways Authority shall transfer all amounts on deposit in the U. S. Route 35 Revenue Enhancement Fund to the trustee of the Parkways Authority’s toll revenue bonds for deposit into the debt service reserve fund established in conjunction with the Parkways Authority’s toll revenue bonds.
(p) Notwithstanding any other provision of this article, if and when the trustee for the Parkways Authority’s toll revenue bonds shall have sufficient funds and U. S. Treasury securities on hand in a defeasance escrow account and in other available funds and accounts held under the trust indenture by the trustee that can be made available for defeasance of such bonds that, in the aggregate, are sufficient to pay all principal of, interest on and applicable premium, if any, on such bonds as and when the same shall become due, the Authority shall direct the trustee to defease such bonds at the first practicable date and time in compliance with the applicable trust indenture requirements and federal tax law and regulations and the Authority shall take steps to accomplish such defeasance. Upon such defeasance or the final maturity and final payment of all such bonds, whichever shall first occur, the Authority shall there upon cease to charge and collect tolls along the Authority’s U. S. Route 35 parkways project.
CHAPTER 31. CORPORATIONS.
ARTICLE 15A. WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT COUNCIL.
§31-15A-11. Reservation of funds for projects and infrastructure projects.
Subsequent to the transfer of $6 million from the West Virginia Infrastructure Fund for deposit into the West Virginia Infrastructure Lottery Revenue Debt Service Fund, the remaining funds transferred to the West Virginia Infrastructure Fund shall be dedicated as follows:
(a) Eighty percent of the funds deposited in the West Virginia Infrastructure Fund shall be dedicated for the purpose of providing funding for the cost of projects as defined in subsection (n) (o), section two of this article.
(b) Twenty percent of the funds deposited in the West Virginia Infrastructure Fund shall be dedicated as follows:
(1) Prior to the dedication of any funds for costs of infrastructure projects pursuant to subdivision (2) of this subsection from the amounts transferred in any particular year from the State Excess Lottery Revenue Fund pursuant to section eighteen-a, article twenty-two, chapter twenty-nine of this code, an amount equal to the difference between: (A) The amount required to be maintained in the debt service reserve fund established in conjunction with the Parkways Authority’s toll revenue bonds issued to finance a portion of the costs of constructing a portion of the parkways project along U. S. Route 35 between West Virginia Route 859 in Putnam County and County Route 40 in Mason County; and (B) the amount on deposit as of April 1 of each year in said debt service reserve fund, as certified by the general manager of the Parkways Authority to the Water Development Authority and the trustee of the revenue bonds pursuant to subsection (m), section ten, article sixteen-a, chapter seventeen of this code, or $8 million, whichever is less, is expressly authorized and dedicated and shall be transferred within ten days of receipt of said certification from the West Virginia Infrastructure Fund to the Parkways Authority for deposit into the Route 35 Toll Revenue Enhancement Fund created in subsection (n), section ten, article sixteen-a, chapter seventeen of this code to be further transferred in accordance with subsection (o) of section ten, article sixteen-a, chapter seventeen of this code.
(2) Any remaining moneys in the fund under this subdivision shall be dedicated for the purpose of providing funding for costs of infrastructure projects as defined in subsection (l), section two of this article.
(c) Project sponsors of infrastructure projects shall follow the application process as established by this article: Provided, That notwithstanding any provision of this article to the contrary, all applications for any infrastructure project shall be submitted to the executive director of the West Virginia Development Office for review, recommendation and approval regarding infrastructure project funding.