SB621 SABSTRACT FIN
SENATE COMMITTEE ON FINANCE
COUNSEL: Shawn D. Bayliss
ABSTRACT
SENATE BILL NO. 621
(Similar to HB 4447)
BY: Senators Bowman, Wooton, Ball, Dittmar, Fanning
SHORT TITLE:
Facilitating procurement and distribution of funds for
infrastructure development.
DATE INTRODUCED: February 19, 1998
CODE REFERENCE: Amend and reenact WV Code § 31-15a-2, 8, 10, 11,
13 and 16; and to add new sections 17, 18, 19, 20, 21, 22, 23, 24;
and to amend and reenact WV Code § 31-15b-2
PROPOSED LAW PRESENTED TO THE COMMITTEE:
§ 31-15a-2 is amended to add the definition of infrastructure
revenue bonds issued by the mater development authority;
§8 is amended to make technical corrections;
§10(c) is amended to define that the uniform statewide
percentage of the median household income in a particular
geographic area may not exceed six tenths of one percent;
§11 is amended to make technical corrections;
§13 is amended to change the name of the fund;
§16 is amended to dedicate the first $24,000,000.00 of the tax
collected to be deposited in the infrastructure general obligation
debt service fund. Currently $16,000,000.00 is dedicated to said
fund;
§17 is a new section. the water development authority is
empowered to issue infrastructure revenue(refunding) bonds to make
loans and loan guarantees to project sponsors for infrastructure
projects. The proceeds of the bonds may be used only for the
purpose of making said loans and loan guarantees.
The West Virginia Infrastructure Revenue Debt Service Fund is
created in the water development authority and is pledged to the
repayment of the bonds issued.
The bonds shall mature by fifty years, and notes shall mature
within five years of the date of issue. the bonds may be sold at
a public or private sale;
§18 is a new section. Bonds shall be secured by a trust agreement between the water development authority and a corporate
trustee, whchwhich may pledge or assign the infrastructure revenue debt
service fund;
§19 is a new section. Any bondholder or trustee may enforeceenforce
ththe obligations of the authority by civil action;
§20 is a new section. Bonds are lawful investments for
banking institutions an other companies;
§21 is a new section. The water development authority has the
power to purchase or redeem infrastructure revenue bonds, the price
of which shall not exceed the redemption price. Upon purchase or
redemption the bonds shall be cancelledcanceled;
§22 is a new section. Refunding revenue bonds;
§23 is a new section. Infrastructure Revenue Bonds are not a
debt of the state, county, municipality or political subdivision.
the bonds are payable solely from the revenues and funds pledged
for their payment;
§24 is a new section. The water development authority shall
not be required to pay any taxes or assessments upon any project or
property. All bonds issued per this article and the interest
theronthereon is also exempt from taxation.
§ 31-15B-2 is amended to increase to 24 million dollars forom
16 million dollares for the maximum amount of outstanding bonds. a
TITLE: OK.
FISCAL NOTE: No.
GOVERNMENT AGENCIES AFFECTED: West Virginia Infrastructure and
Jobs Development Council; Division of Environmental Protection;
Division of Health; Economic Development Authority
EFFECTIVE DATE: July 1, 1998
OTHER COMMITTEE REFERENCE AND/OR ACTION: Originated in the Senate
Committee on the Judiciary
COMMENTS: None.