Chapter 5B. Economic Development Act Of 1985


Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
WEST VIRGINIA CODE











‹ Back



 |   Print







WVC 5B-

CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.

WVC 5 B- 7 -

ARTICLE 7. RECOVERY ZONE BONDS.



WVC 5 B- 7 - 1

§5B-7-1. Definitions.

Unless the context clearly indicates otherwise, as used in

this article:

(1) "Economic Development Authority" or "authority" means the

West Virginia Economic Development Authority as continued in

section five, article fifteen, chapter thirty-one of this code.

(2) "Recovery zone bonds" means recovery zone economic

development bonds and recovery zone facility bonds, authorized

under Section 1401 of Title I of Subtitle B of the American

Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, 123 Stat.

115 (2009), that may be issued by states, counties, certain

municipalities and other qualified issuers within each state before

January 1, 2011.

(3) "Recovery zone economic development bond" means the term

as defined in 26 U.S.C. §1400U-2.

(4) "Recovery zone facility bond" means the term as defined in

26 U.S.C. §1400U-3.

(5) "Volume cap" means the recovery zone bond volume

limitation allocated to each state and to counties and

municipalities within each state in accordance with 26 U.S.C.

§1400U-1.







WVC 5 B- 7 - 2

§5B-7-2. Allocation of volume cap for recovery zone bonds;

obligations not debt of state.

Pursuant to 26 U.S.C. §1400U-1(a)(3)(A), the State of West

Virginia shall allocate the volume cap among the counties of the

state in the same manner as described in Section 6.04 of Internal

Revenue Service Notice 2009-50. Bonds, notes and other obligations

issued pursuant to this article shall not constitute a debt or a

pledge of the faith and credit or taxing power of this state and

the holders and owners thereof shall have no right to have taxes

levied by the Legislature for the payment of the principal thereof

or interest thereon, but such bonds, notes and other obligations

shall be payable solely from revenues and funds pledged for their

payment as established in the authorizing orders, ordinances and

resolutions of such issuers. All such bonds and notes, and all

documents evidencing any other obligation, shall contain on the

face thereof a statement to the effect that the bonds, notes or

such other obligation as to both principal and interest, are not

debts of the state but are payable solely from revenues and funds

pledged for their payment.







WVC 5 B- 7 - 3

§5B-7-3. Certification and waiver of volume cap allocation.

(a) Preliminary certification. --

(1) Each county allocated volume cap in accordance with this

article shall submit a preliminary certification to the Governor

that includes:

(A) The amount of volume cap the county intends to use;

(B) The entity issuing each series of recovery zone bonds. If

the county has suballocated volume cap to an entity, the

certification shall include a copy of an order, ordinance or

resolution of the county commission authorizing the suballocation;

(C) The projects, including, but not limited to, road

transportation projects, to be financed by the issuance of each

series of recovery zone bonds; and

(D) The financing plan for each series of recovery zone bonds,

including the source of payment of the debt service of each series

of recovery zone bonds.

(2) Preliminary certifications for recovery zone economic

development bonds shall be submitted to the Governor on or before

January 31, 2010.

(3) Preliminary certifications for recovery zone facility

bonds shall be submitted to the Governor on or before February 28,

2010.

(4) Any portion of volume cap allocated to a county that is

not certified for use by the county in accordance with this

subsection is considered waived.

(5) A county may waive its allocation of volume cap by

providing written notice of such waiver to the Governor on or

before January 31, 2010, in the case of volume cap for recovery

zone economic development bonds, or on or before February 28, 2010,

in the case of volume cap for recovery zone facility bonds.

(b) Final certification. --

(1) Each county that has submitted a preliminary certification

to the Governor shall submit a final certification to the Governor

on or before July 31, 2010. The final certification shall

establish: (i) That the county or other entity receiving a

suballocation from the county has closed on each series of recovery

zone bonds or has entered into a bond purchase agreement that

requires closing on each series of recovery zone bonds prior to

August 31, 2010; and (ii) the amount of volume cap used by the

county.

(2) Any portion of volume cap allocated to a county that is

not certified as used in accordance with this subsection is

considered waived. However, if an entity receiving a suballocation

from a county submits a timely certification pursuant to section

five of this article, that suballocated portion of the county's

volume cap is not considered waived.

(3) If, after submitting a preliminary certification to the

Governor, a county determines to waive any portion of its

allocation of volume cap, it may waive its allocation of such

portion by notifying the Governor in writing on or before July 31, 2010.

(c) Notice of waiver. -- The Governor shall provide timely

written notice to the Economic Development Authority of any written

volume cap waiver submitted by a county.







WVC 5 B- 7 - 4

§5B-7-4. Reallocation of volume cap.

(a) The Economic Development Authority shall reallocate volume

cap that has been waived pursuant to this article. The authority

may reallocate the volume cap to the state, state agencies,

counties, municipalities or any other political subdivisions or any

other eligible issuer authorized to issue recovery zone bonds

pursuant to Section 5.04 of Internal Revenue Service Notice

2009-50.

(b) As soon as reasonably possible after the effective date of

this section the authority shall adopt a procedure for the

solicitation and receipt of applications, on a form and in a manner

prescribed by the authority, for eligible issuers seeking

reallocated volume cap.

(c) Within ninety days of receipt of written notice from the

Governor the authority shall reallocate any amount of volume cap

waived by a county pursuant to this article. The authority shall

provide written notice of any reallocation to the entity receiving

the reallocation.







WVC 5 B- 7 - 5

§5B-7-5. Suballocation of volume cap by counties; counties

authorized to take action to issue recovery zone

bonds.

Counties allocated volume cap pursuant to this article may, by

order, ordinance or resolution of the county commission,

suballocate such allocation to municipalities or any other eligible

issuers authorized to issue recovery zone bonds pursuant to Section

5.04 of Internal Revenue Service Notice 2009-50. Each county that

suballocates volume cap shall attach a copy of the order, ordinance

or resolution authorizing the suballocation to the preliminary

certification required in section three of this article. Entities

receiving a suballocation pursuant to this section shall certify to

the county and to the Governor no later than July 31, 2010, that

the entity has closed on the recovery zone bonds using the volume

cap suballocation or has entered into a bond purchase agreement

that requires a closing on the recovery zone bonds prior to August

31, 2010. Counties shall be authorized to take any other action

required by Internal Revenue Service Notice 2009-50 to issue

recovery zone bonds.





Note: WV Code updated with legislation passed through the 2015 Regular Session

The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.

Related Laws