COMMITTEE SUBSTITUTE

FOR

HOUSE JOINT RESOLUTION NO. 104

(By Mr. Speaker, Mr. Kiss, and Delegates Martin, Michael, Mezzatesta, Ashley, Pino and Fleischauer)


[Originating in the Committee on Constitutional Revision]

[February 12, 1998]


Proposing an amendment to the Constitution of the State of West Virginia, amending article ten thereof by adding thereto a new section, designated section eight-a, relating to the authority of the Legislature to define types of improvement projects and to authorize the issuance by counties or municipalities of bonds to be payable from revenues derived from increased real or personal property taxes on such improvement projects in the county or municipality upon approval by majority vote in the county or counties and in the municipality where the proposed project is located; numbering and designating the proposed amendment; and providing a summarized statement of the purpose of the proposed amendment.

Resolved by the Legislature of West Virginia, two thirds of the members elected to each house agreeing thereto:
That the question of ratification or rejection of an amendment to the Constitution of the State of West Virginia be submitted to the voters of the State at the next general election to be held in the year one thousand nine hundred ninety-eight, which proposed amendment is that article ten thereof be amended by adding thereto a new section, designated section eight-a, to read as follows:
ARTICLE X. TAXATION AND FINANCE.
§ 8a.Issuance of bonds payable from incremental increases in property taxes: voter approval required.
Notwithstanding any other provisions of this constitution to the contrary, the Legislature by general law may define and prescribe specific types of material improvements to real and personal property which will constitute economic development projects and authorize the issuance by counties or municipalities of bonds to finance a portion of such economic development projects. The legislature may further determine the rights, remedies and conditions governing such projects, which may be located upon one or more parcels of real estate owned by one or more public or private entities.
Improvements for which such bonds are or are to be issued shall be entered, valued and assessed on the land and personal property tax records of the appropriate taxing authority. Such entries shall be made separately from the property so improved and, if located in more than one county or municipality, by separate entry for each applicable tax rate, which separate assessment shall be in addition to, and not in lieu of, the assessment for the property prior to the improvement.
No tax revenues of the county or municipality may be pledged to, or used for, the payment of such bonds, except for such increased tax revenues. Bonds so issued shall be for a term not to exceed 40 tax years, and may provide for the pledge of such other funds as the owner of the improvements may by contract or otherwise be required to pay. Upon payment in full of such bonds, such increased tax revenues shall revert to the appropriate levying bodies. Any dedication or payments from the tax proceeds shall not include excess levies, bond levies or other special levies.
No bonds may be issued unless the question in connection with the bond issuance has been first submitted to a vote of the people of the county or counties issuing the bonds, or, in the case of a municipality issuing bonds, the people of the municipality and the county or counties in which such municipality is located, and have received a majority of all votes cast on the issue in such municipality issuing bonds and in each county in which such election is held.
Resolved further, That in accordance with the provisions of article eleven, chapter three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, this proposed amendment is hereby numbered "Amendment No. 1" and designated as the "Local Option Economic Development Amendment", and the purpose of the proposed amendment is summarized as follows: "To amend the State Constitution to permit the Legislature to authorize the financing of economic development projects through the issuance by counties or municipalities of bonds payable from increases in real and personal property taxes, not including excess levies, bond levies or other special levies, on such economic development projects. Upon payment in full of such bonds, for a term not to exceed 40 years, such increased tax revenues shall revert to the appropriate levying bodies. No tax revenues of the county or municipality may be pledged to, or used for, the payment of such bonds, except for such increased tax revenues. Such bonds may only be issued upon approval by of a majority of the voters in each county in which such project is located, and, in the case of bonds issued by a municipality, upon approval by of a majority of the voters in such municipality and in such county or counties in which such project is located."