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.