ENROLLED

HOUSE JOINT RESOLUTION NO. 201

(By Mr. Speaker, Mr. Kiss, and Delegate Trump)

[By Request of the Executive]

[Adopted July 15, 2002.]


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 issuance of bonds and other obligations by counties and municipalities; authorizing counties and municipalities to issue bonds and other obligations; providing that the bonds and other obligations be paid from certain revenues generated by increased property values in the project or development area; 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 two thousand two, 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 or other obligations payable from property taxes on increases in value due to economic development or redevelopment projects in counties and municipalities.

Notwithstanding any other provision of this Constitution to the contrary, the Legislature by general law may authorize the issuance of revenue bonds or other obligations by counties and municipalities to assist in financing qualified economic development or redevelopment projects that benefit public health, welfare and safety subject to conditions, restrictions or limitations as the Legislature may prescribe by general law.

The bonds or other obligations are payable from property tax revenues generated by the increases in value of property located within the development or redevelopment project area or district due to capital investment in the project. The Legislature shall prescribe by general law the manner in which these increases are determined.

The term for any bonds or other obligations issued may not exceed thirty tax years. The bonds or other obligations may not be deemed to be general obligations of the issuing county or municipality or of this state. The bonds or other obligations may provide for the pledge of any other funds as the owner of the improvements may by contract or otherwise be required to pay. Upon payment in full of the bonds, the increased tax revenues shall revert to the levying bodies authorized under the provisions of this Constitution to receive the revenues. The bonds or other obligations may not be paid from excess levy, bond levy or other special levy revenues.

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 "County and Municipal Option Economic Development Amendment", and the purpose of the proposed amendment is summarized as follows: "To amend the State Constitution to permit the Legislature by general law to authorize county commissions and municipalities to use a new economic development tool to help create jobs. This tool will permit county commissions and municipalities to assist in
financing economic development or redevelopment projects by redirecting specific new property tax revenues from an approved project, or project area or district. These redirected revenues will be used to pay-off revenue bonds or other obligations issued to finance some or all of the cost of the project. This amendment authorizes the financing of some or all of the cost of qualified economic development and redevelopment projects through issuance of county and municipal revenue bonds or other obligations, payable from property taxes assessed on the enhanced value of property located in the economic development or redevelopment project area or district. This proposed amendment does not apply to taxes from excess levies, bond levies or other special levies. Upon payment-in-full of the bonds or other obligations, the property tax revenues revert to the appropriate levying bodies. The term of the bonds or other obligations may not exceed thirty years."