Source: http://www.wvlegislature.gov/bill_status/bills_text.cfm?billdoc=SB12%20sub1.htm&yr=2016&sesstype=RS&i=12
Timestamp: 2020-02-22 07:14:01
Document Index: 25416043

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SB12 sub1 Senate Bill 12 History
By Senator Leonhardt
[Originating in the Committee on Transportation and Infrastructure; reported on January 29, 2016]
A BILL to amend and reenact §7-20-1, §7-20-2, §7-20-3, §7-20-6, §7-20-7, §7-20-7a, §7-20-14, §7-20-15, §7-20-16, §7-20-23 and §7-20-24 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto twenty-eight new sections, designated §7-20-25, §7-20-26, §7-20-27, §7-20-28, §7-20-29, §7-20-30, §7-20-31, §7-20-32, §7-20-33, §7-20-34, §7-20-35, §7-20-36, §7-20-37, §7-20-38, §7-20-39, §7-20-40, §7-20-41, §7-20-42, §7-20-43, §7-20-44, §7-20-45, §7-20-46, §7-20-47, §7-20-48, §7-20-49, §7-20-50, §7-20-51 and §7-20-52, all relating generally to County Local Powers Act; fees, taxes and expenditures for county development; restating short title; amending its purpose and legislative findings; amending certain definitions and adding definitions; amending criteria and requirements to implement and collect certain fees; amending authorization for county commissions to impose impact fees, services fees and other taxes; providing that certain fees and taxes collected may be deposited in special fund and used to pay debt service on revenue bonds issued to finance capital improvements or to finance them on a pay-as-you-go basis; making technical corrections; allowing county commissions and Commissioner of Highways to enter into intergovernmental agreements for construction and modernization of state roads, bridges and related infrastructure and financing in their respective counties; providing procedures for creation and finalization or project plans and amendments of plans; requiring notice to certain locally elected public officials and general public on proposed road, bridge and related infrastructure construction projects and project amendments with opportunity for public comment; providing means to finance cost of proposed road, bridge and related infrastructure construction projects and project amendments; allowing reallocation of ad valorem property taxes after ratification of constitutional amendment of certain property tax collections to finance, in whole or in part, capital improvements to infrastructure; providing for applications for a construction project and the contents of applications; providing rule-making authority; creating special fund; requiring approval of boards of education for reallocation of regular property tax levies; providing for termination of reallocation of levies; authorizing Commissioner of Highways to issue revenue bonds and refunding bonds to finance road, bridge and related infrastructure projects financed, in whole or in part, by county commissions; providing that all bonds are exempt from tax, are negotiable and are lawful investments; providing procedures for issuance of bonds; allowing projects to also be constructed on pay-as-you-go basis; providing that these powers are supplemental powers of county commissions and Commissioner of Highways; requiring reports; exempting public officials from personal liability; providing a severability clause; and effective dates.
That §7-20-1, §7-20-2, §7-20-3, §7-20-6, §7-20-7, §7-20-7a, §7-20-14, §7-20-15, §7-20-16, §7-20-23 and §7-20-24 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto twenty-eight new sections, designated §7-20-25, §7-20-26, §7-20-27, §7-20-28, §7-20-29, §7-20-30, §7-20-31, §7-20-32, §7-20-33, §7-20-34, §7-20-35, §7-20-36, §7-20-37, §7-20-38, §7-20-39, §7-20-40, §7-20-41, §7-20-42, §7-20-43, §7-20-44, §7-20-45, §7-20-46, §7-20-47, §7-20-48, §7-20-49, §7-20-50, §7-20-51 and §7-20-52, all to read as follows:
PART 1. IMPACT FEES AND SERVICE FEES.
This article shall be known as the "County Local Powers Act".
(a) It is the purpose of this article to provide for the fair distribution of costs for county development by authorizing the assessment and collection of fees to offset the cost of commercial, industrial and residential development within affected counties.
(4) Sound fiscal policy in the efficient administration of county government requires that the imposition of taxes and user charges be commensurate to with the actual yearly cost of county facilities and services;
(6) County borrowing unnecessarily increases the cost of government by the amount of debt service and should be avoided unless considered absolutely necessary to meet an existing public need; and
(7) County economic development is hampered by the lack of state dollars to fund new roads and bridges and related infrastructure and to fund improvements to existing state roads and bridges and related infrastructure.
"Broadband transmission lines" means equipment lines, regardless of the technology or medium, including, but not limited to, copper wire, fiber-optic cable or coaxial cable, capable of transmitting broadband service.
(a) "Capital improvements" means the following public facilities or assets that are owned, supported or established by county government or on behalf of a government entity:
(6) Public road systems and rights-of-way owned by the West Virginia Department of Transportation or another government entity;
(8) Police, emergency medical, rescue, and fire protection facilities; and
(9) Broadband transmission lines.
"Capital improvements" as defined herein is limited to those improvements that are treated as capitalized expenses according to generally accepted governmental accounting principles, or generally accepted accounting principles in the case of certain county economic development entities, and that have an expected useful life of no less than three years. "Capital improvement" does not include costs associated with the operation, repair, maintenance, or full replacement of capital improvements. "Capital improvement" does include reasonable costs for planning, design, engineering, land acquisition, and other costs directly associated with the capital improvements described herein.
"County economic development entity" means a county economic development authority established pursuant to article twelve of this chapter or if a county does not have a county economic development authority established pursuant to article twelve of this chapter, an entity designated by resolution of the county commission of the county as the lead entity for economic development activities for the purpose of encouraging economic development in the county which entity may be, but is not limited to being, redevelopment authorities created pursuant to article eighteen, chapter sixteen of this code; county economic development corporations; regional economic development councils, corporations or partnerships.
(c) "Direct county services" means those public services authorized and provided by various county agencies or departments including, but not limited to, county economic development entities.
"Economic development" means any activity by a government entity seeking to improve the economic well-being and quality of life for a community and its citizens by creating or retaining jobs, growing incomes and increasing the tax base.
"Governmental entity" means the state and any county, municipality, or other governmental unit or political subdivision of the state, public corporation established by the state or a political subdivision thereof and county economic development entities.
(e) "Growth county" means any county within the state with an averaged population growth rate in excess of one percent per year as determined from the most recent decennial census counts and forecasted, within decennial census count years, by official records of government or generally approved standard statistical estimate procedures: Provided, That once "growth county" status is achieved it is permanent in nature and the powers derived hereby are continued. However, beginning July 1, 2016, the term "growth county" means and includes all of the fifty-five counties in this state regardless of their population.
(j) "Plan" means a county, comprehensive, general, master or other land use plan as described herein in part one of this article.
"Related infrastructure" means and includes water distribution facilities, sanitary sewers, and storm water, drainage, and flood control facilities;
"Road" means a public highway, road, bridge, tunnel, or overpass to be used for the transportation of persons or goods that is or will be upon completion part of the state road system as defined in article twelve-a of this chapter.
"Road project" means any project, including related infrastructure, to acquire, design, construct, expand, renovate, extend, enlarge, increase, equip, improve, maintain or operate a road in this state that is under the jurisdiction of the West Virginia Department of Transportation.
"West Virginia Commissioner of Highways" or "Commissioner of Highways" has the meaning ascribed to the term in section two, article one, chapter seventeen of this code.
(a) As a prerequisite to authorizing counties to levy impact fees related to population growth and or public service needs as provided in section seven of this article, counties shall meet the following requirements:
(1) A demonstration that current infrastructure is hampering economic development in the county or that the county’s population growth rate history as determined from the most recent base decennial census counts of a county, utilizing generally approved standard statistical estimate procedures, in excess of one percent annually averaged over a five-year period since the last decennial census count; or a demonstration that a total population growth rate projection of one percent per annum for an ensuing five-year period, based on standard statistical estimate procedures, from the current official population estimate of the county;
(2) Adopting Adopt a countywide comprehensive plan;
(3) Reviewing Periodic review and updating any of a comprehensive plan at no less than five-year intervals;
(6) (4) Keeping Imposing and keeping in place a formal building permit and review system which provides a process to regulate the authorization of applications relating to construction or structural modification. The county shall adopt, pursuant to section three-n, article one of this chapter, the state building code into any such building permit and review system; and
(7) (5) Providing Provide an improvement program which shall include:
(B) Developing and maintaining standards of service for capital improvements which are fully or partially funded with revenues collected from impact fees, service fees, property tax collections reallocated as provided in section twenty-five of this article, taxes imposed pursuant to this article, or any combination thereof; and
(e) The county may periodically modify annually any capital improvements plan in addition to any impact fee rates based thereon, pursuant to the following:
Notwithstanding any other provision of this code to the contrary, those counties that meet the requirements of section six of this article are hereby authorized to assess, levy, collect and administer any tax or fee as has been or may be specifically authorized by the Legislature by general law to the municipalities of this state: Provided, That any assessment, levy or collection shall be delayed sixty days from its regular effective date: Provided, however, That in the event fifteen percent of the qualified voters of the county by petition duly signed by them in their own handwriting and filed with the county commission within forty-five days after any impact fee or levy is imposed by the county commission, pursuant to this article, the fee or levy protested may not become effective until it is ratified by a majority of the legal votes cast thereon by the qualified voters of such county at any primary, general or special election as the county commission directs. Voting thereon may not take place until after notice of the subcommission of referendum on the fee a or levy on and the ballot ballots has have been given by publication of published as a Class II legal advertisement and publication area shall be in the county where such fee or levy is imposed: Provided further, That counties may not "double tax" by applying a given tax within any corporate boundary in which that municipality has implemented such tax. Any such taxes or fees collected under this law may be used to fund a proportionate share of the cost of existing capital improvements and public services where it is shown that all or a portion of existing capital improvements and public services were provided in anticipation of the needs of new development.
(b) On or before July 1, 2012, A county imposing impact fees shall enact an affordable housing component with a discount impact fees schedule, based upon the new homes value compared to the most recent annual single dwelling residential housing index created in section two-b, article one, chapter eleven of this code, to the county’s impact fees ordinance. The impact fees schedule shall be updated annually to reflect the changes to the single dwelling residential housing index.
(d) The county commission shall annually review impact fees imposed pursuant to this article and may approve, by a majority vote, any increase or decrease in the impact fees schedule.
(a) The proceeds from the sale of any bonds issued under authority of section thirteen of this article shall be applied only for the purpose for which the bonds were issued: Provided, That any accrued interest and premium received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold. If for any reason any portion of the proceeds shall not be needed for the purpose for which the bonds were issued, then the unneeded portion of the proceeds shall be applied to the purchase of bonds for cancellation or payment of the principal of or the interest on the bonds, or held in reserve for the payment thereof.
(3) Real property acquisition costs, including, but not limited to, rights-of-ways;
(a) No county commission shall have the power to pay out of its general funds or otherwise contribute, any of the costs of acquiring, constructing or financing a special infrastructure project to be acquired, constructed or financed, in whole or in part, out of the proceeds from the sale of revenue bonds issued under the authority of this article: Provided, That this provision shall not be construed to prevent a county from accepting donations of property to be used as a part of an infrastructure project or to be used for defraying any part of the cost of any infrastructure project or from imposing a service fee as provided in section twelve of this article, which is dedicated, in whole or in part, to the infrastructure project or to payment of debt service on revenue bonds issued pursuant to this article.
(b) The bonds issued pursuant to section thirteen of this article shall be payable solely from: (1) The revenue derived from the infrastructure project or the financing thereof; (2) the service fee imposed pursuant to section twelve of this article; or (3) property tax collections as provided in section twenty-five of this article; (4) any revenue collected pursuant to this article that is deposited in a special revenue fund established by the county commission that is not part of the general revenue of the county; or (5) any combination of these sources.
(c) No county commission shall have the authority under this article to levy any taxes for the purpose of paying any part of the cost of acquiring, constructing or financing an infrastructure project except as provided in this article. However, all necessary preliminary expenses actually incurred by a county commission in the making of surveys, taking options, preliminary planning and all other expenses necessary to be paid prior to the issuance, sale and delivery of the revenue bonds, may be paid by the county commission out of any surplus contained in any item of budgetary appropriation or any revenues, including, but not limited to, service fees, collected in excess of anticipated revenues, which shall be reimbursed and repaid out of the proceeds of the sale of the revenue bonds.
Bonds issued under the provisions of section thirteen of this article shall be legal investments for banks, building and loan associations, and insurance companies organized under the laws of this state and for a business development corporation organized pursuant to chapter thirty-one, article fourteen of this code.
(a) When revenue bonds have been issued as provided in section thirteen of this article and the amount of service fees imposed pursuant to section twelve of this article, if any, and collected by the sheriff, less costs of administration, collection and enforcement, exceeds the amount needed to pay project costs and annual debt service, including the finding of required debt service and maintenance reserves, the additional amount shall be set aside in a separate fund and used to retire some or all of the outstanding revenue bonds before their maturity date.
(b) Once the revenue bonds issued as provided in section thirteen of this article are no longer outstanding or the county commission determines that sufficient reserves have been or will be accumulated as of a specified date to pay all future debt service on the outstanding bonds, the service fee to payable services on a subsequent issue of revenue bonds imposed pursuant to section twelve of this article may not be imposed or collected for subsequent weeks after that date. Termination of the service fee as provided in this section shall not bar or otherwise prevent the county commission from collecting service fees that accrued before the termination date.
If any section, clause, provision or portion of part one of this article shall be held to be invalid or unconstitutional by any court of competent jurisdiction, such holding shall not affect any other section, clause or provision of this article which is not in and of itself unconstitutional.
PART 2. COUNTY ROAD AND BRIDGE CONSTRUCTION AND OTHER INFRASTRUCTURE CAPITAL IMPROVEMENT PROJECTS.
Subpart A. General.
§7-20-25. Ad valorem property taxes on capital additions.
(a) Pursuant to section 1d, article X of the Constitution and notwithstanding any provision of this code to the contrary, when a new manufacturing facility or a capital addition to an existing manufacturing facility qualifies for treatment under article six-f, chapter eleven of this code, then for the first tax year that the facility of capital addition thereto does not qualify for tax treatment, in whole or in part, under that article, the sheriff shall deposit property taxes paid by the owner of a new manufacturing facility or a capital addition to an existing manufacturing facility in the county's special fund established for county road and bridge construction and other infrastructure capital improvement projects. However, this reallocation does not apply to taxes attributable to excess levies or to levies for bonded indebtedness. Upon order of the county commission, the sheriff shall periodically transfer moneys in this special fund to pay: (1) For capital improvements that are not part of a road construction project on a pay-as-you-go basis; (2) debt service on revenue bonds issued pursuant to section thirteen of this article to pay for infrastructure capital improvements that are not part of a road construction project; and (3) road construction projects as provided in section thirty-five of this article.
(b) Subsection (a) of this section takes effect upon ratification of section 1d, article X of the Constitution.
(c) Reallocation of certain property tax collections as provided in section 1d, article X of the constitution and subsection (a) of this section shall be for the property tax year (calendar year) that begins after the county commission enters an order authorizing the reallocation. However, the county commission may not adopt or enter this order until after receipt of a resolution adopted by the county board of education supporting the infrastructure capital improvement project and, if the project is a road or bridge construction project that will be owned by the West Virginia Department of Transportation, receipt by the county commission of a memorandum of understanding executed by the Commissioner of Highways and the president of the county commission.
(d) The reallocation of certain property tax collections pursuant to subsection (a) of this section shall end beginning with the property tax year (calendar year) that begins after the county commission enters an order terminating the reallocation. However, a county's reallocation shall continue for not more than thirty property tax years, unless revenue bonds or refunding revenue bonds for the infrastructure capital improvement project remain outstanding, in which event the county commission shall enter an order terminating the reallocation for the property tax year that begins after the bond trustee certifies to the commission that the debt service has been paid or that sufficient funds exist to pay the remaining debt service as it becomes due.
§7-20-26. Creation of county road construction project plan.
County commissions, upon their own initiative or upon application of: (1) A highway authority; (2) a local, county or regional economic development authority; or (3) any resident of the county, may propose creation of a road construction project plan for the county, or propose an amendment to an existing road construction project plan of the county. This plan may include related infrastructure that is necessary or convenient to economic development adjacent to the proposed road. Road construction project plans are limited to those for the construction, reconstruction, improvement or modernization of state roads, as defined in section one, article twelve-a of this chapter, that are part of the state road system, as defined in that section, or that will become part of the state road system upon completion of the construction. All construction, reconstruction, improvement or modernization and maintenance of state roads shall be done by or under the supervision of the Commissioner of Highways.
§7-20-27. Public hearing required.
(a) General. – After the proposed road construction project plan, or proposed project plan amendment, is drafted, the county commission shall hold one or more public hearings at which interested persons may express their views on the county's proposed road construction project plan, or the proposed amendment to an existing road construction project plan, including related infrastructure if any.
(2) A description of each road construction project included in the proposed road construction project plan, or the proposed amendment to an existing project plan, including related infrastructure if any, in sufficient detail to give the public notice of the contents of the proposed project plan, or the proposed amendment to an existing project plan, including any related infrastructure, to cause residents of the county and other interested persons to examine the proposed road construction project plan, or the proposed amendment to an existing project plan, including related infrastructure, and attend the public hearing or submit written comments should they so choose;
(3) Identify the places in the county where the proposed road construction project plan, or the proposed amendment to an existing project plan may be viewed, one of which places shall be the county commission's webpage; and
(4) Explain whether one or more projects in the proposed road construction project plan, or in the proposed amendment to an existing project plan, including related infrastructure if any, will be financed, in whole or in part, by certain ad valorem property tax collections as provided in section twenty-five of this article.
(c) Notice by mail. – On or before the first day of publication of the public notice, a copy of the notice shall be sent by first-class mail to the Commissioner of Highways, the Director of the West Virginia Development Office, the county superintendent of schools (or president of the county board of education), and to the mayor of each municipality located within the county. Additionally, when the county commission reasonably anticipates that a proposed road construction project may affect a bordering county, a copy of the notice shall also be sent by first-class mail to the president of the county commission of the bordering county or counties.
(d) Opportunity to be heard. – All persons who appear at the public hearing shall be afforded a reasonable opportunity to express their views on all or any part of the proposed road construction project plan, or the proposed amendment to an existing project plan, including related infrastructure if any.
(e) Written comments. – Additionally, written comments may be submitted to the county commission before, during or within five business days after the public hearing. Timely mailing of the written comments to the county commission, at the mailing address of the courthouse, postage prepaid, shall be deemed timely submission of the written comments.
(f) Recording of public hearing. – Each public hearing shall be recorded by a court reporter, or be digitally recorded.
§7-20-28. Finalization of project plan, or amendment.
(a) Resolution of county commission. – After both the public hearing and the public comment period close, and after receipt of any required resolution of the governing body of a municipality as provided in subsection (b) of this section, the county commission may, by resolution, finalize its roads construction project plan, or its proposed amendment to an existing road construction project plan, including related infrastructure if any, and, after prioritizing each project, adopt a resolution authorizing submission of an application for the road construction project plan, or for the amendment to an existing project plan, as finalized, to the Commissioner of Highways for review and approval, as provided in section eleven of this article.
(b) Consent of municipality in which project located. – No county commission may adopt a resolution approving a road construction project plan, or an amendment to a previously approved project plan, any portion of which is located within the boundaries of a Class I, II, III or IV municipality, without the adoption of a resolution by the governing body of that municipality consenting to construction of the project within the municipality.
§7-20-29. Order adopting road construction project plan or plan amendment.
(a) A road construction project plan, or an amendment to an existing project plan, may not be adopted by order of the county commission until after the project plan, or the plan amendment, including related infrastructure if any, has been approved by the Commissioner of Highways.
(b) Upon approval of a road construction project plan, or a plan amendment, by the Commissioner of Highways, and receipt of a resolution adopted by the county board of education supporting the road construction project plan or plan amendment, the county commission may enter an order that:
(1) Describes each approved road construction project sufficiently to identify with ordinary and reasonable certainty the geographic location in the county of each road construction project included in the county's plan and any related infrastructure;
(2) Assigns a name to the road construction project for identification purposes, which name shall be the name given to the project by the Commissioner of Highways should the commissioner assign a name to the project;
(3) Includes a geographic or other designation; and
(4) Assigns a project number that begins with the federal information processing code number (FIPS code number) for the county followed by a hyphen and a consecutive number beginning with the number "01". Each additional road construction project in the county approved by the Commissioner of Highways shall be assigned the next consecutive number.
(c) Implements section twenty-five of this article for the next property tax year (calendar year) that begins after the order is entered by the county commission.
§7-20-30. Amendment of road construction project plan.
(a) In general. – A road construction project plan adopted by order of the county commission, including related infrastructure if any, may be amended by the county commission at any time to add one or more projects, or delete one or more projects, or redesignate the order in which projects are to be completed as funds become available: Provided, That once a particular road construction project has been approved by the Commissioner of Highways and an intergovernmental agreement is executed as provided in this article for that project, the project may not be revised by the county commission without the express written approval of the Commissioner of Highways.
(b) Procedure to amend project plan. – The procedures in this article that apply to creation of a road construction project plan shall also apply to each proposed amendment to the adopted road construction project plan including any related infrastructure.
§7-20-31. Joint road construction projects.
(a) The Legislature hereby finds and declares that the citizens of the state would benefit from coordinated road construction efforts by county commissions that enter an order reallocating certain property tax collections as provided in section twenty-five of this article.
(b) Notwithstanding any other section of this code to the contrary, any two or more county commissions may contract to share expenses for and to share property tax collections reallocated as provided in section twenty-five of this article, on a pro rata or other basis, to facilitate construction of road construction projects within their respective counties, including related infrastructure if any.
(c) When a road construction project begins in one county and ends in one or more other counties of this state, the county commission of each county may, by resolution, adopt a written intergovernmental agreement with each county and the Commissioner of Highways regarding the proposed multicounty road construction project, including related infrastructure if any.
(d) No county commission may withdraw from an intergovernmental agreement as long as revenue bonds remain outstanding the proceeds of which were used by the Commissioner of Highways to finance construction of the road.
(e) No withdrawing county commission shall be entitled to the return of any money or property advanced to the road construction project, including related infrastructure if any.
(f) Notwithstanding any provision of this code to the contrary, any county commission that reallocates certain property tax collections as provided in section twenty-five of this article may agree with one or more other counties that also reallocate certain property tax collections as provided in section twenty-five of this article that have an interest in completion of a proposed road construction project, including related infrastructure if any, may enter into an intergovernmental agreement with respect to the pooling of certain property tax collections reallocated pursuant to section twenty-five of this article to finance construction of the road construction project, including related infrastructure if any, either on a cash basis or to pay debt service on revenue bonds issued by the Commissioner of Highways to fund the road construction project.
(g) The obligations of the parties under any intergovernmental agreement executed pursuant to this article shall not be debt within the meaning of section six or eight, article X of the Constitution.
(i) The Commissioner of Highways is authorized to enter into intergovernmental agreements with county commissions or other political subdivisions of the state, or with the federal government or any agency thereof, respecting the financing, planning, and construction of roads and bridges, including related infrastructure if any, constructed pursuant to this part of this article.
§7-20-32. Termination of road construction project plan.
(a) General. – No road construction project plan may be in existence for a period longer than thirty years, except as otherwise provided in this section, and no revenue bonds secured by collections of property taxes reallocated pursuant to section twenty-five of this article may have a final maturity date of more than thirty years after date of issuance of the revenue bonds.
(b) Extension of plan. – Each amendment of a county's road construction project plan approved by the Commissioner of Highways that results in execution of an intergovernmental agreement by the county commission and the Commissioner of Highways shall extend the term of the project plan for another thirty years beginning with the day the last party to sign signs the intergovernmental agreement.
(c) Prohibition on termination or rate reduction. – The county commission may not repeal the order allocating property taxes paid on certain manufacturing facilities or capital additions thereto pursuant to section twenty-five of this article, or reduce the rates at which the taxes are imposed, so long as any revenue bonds secured by the taxes remain outstanding, unless payment of the bonds has been secured.
Subpart B. Commissioner of Highways.
§7-20-33. Application to Commissioner of Highways for approval of road construction project plans.
The Commissioner of Highways, within sixty days after receipt of the county commission's proposed road construction project plan, or an amendment to a previously approved project plan, including related infrastructure if any, shall: (1) Approve the plan as submitted, in whole or in part; (2) Reject the plan as submitted, in whole or in part; or (3) Return the plan to the county commission for further development or review in accordance with instructions of the Commissioner of Highways. The decision of the commissioner is final and is not subject to judicial review.
§7-20-34. Contents of application.
(a) Each application submitted under section thirty-three of this article shall include:
(1) A true copy of the county's proposed road construction project plan, or proposed amendment to a project plan previously approved by the Commissioner of Highways, including related infrastructure if any, that is adopted, after the public hearing, by resolution of the county commission.
(2) A true copy of the resolution adopted by the county commission approving submission of the adopted road construction project plan, or the proposed amendment to a project plan previously approved by the Commissioner of Highways, including related infrastructure if any, to the Commissioner of Highways for approval.
(3) A true copy of the notice of public hearing or hearings on the county's proposed road construction plan, or proposed amendment to a previously adopted project plan, including and a true copy of the proposed plan, or the proposed amendment to an existing project plan, including related infrastructure if any, that was the subject of the public hearing.
(4) An affidavit signed by the president of the county commission confirming publication of the notice of public hearing.
(5) A true copy of the transcript of the public hearing or hearings, or a true copy of the digital recording of the public hearing or hearings, including true copies of any written comments received by the commission on the proposed road construction project plan, or the proposed amendment to an existing project plan, including related infrastructure if any.
(6) A statement generally describing each project included in the county's road construction project plan, or the proposed amendment to an existing project plan, including related infrastructure if any, and identifying:
(A) Type of project, as:
(i) Road project,
(ii) Bridge project, or
(iii) Road and bridge project.
(B) Related infrastructure, if any.
(D) Length of the project (in miles or feet).
(E) Scope of the work.
(F) Classification of the project as:
(i) Preservation project;
(ii) Modernization project; or
(iii)Expansion project.
(G) Estimated cost of the project.
(H) Method of financing the project.
(I) Time line for completion of the project.
(7) A map of the county showing the geographic location of each road construction project included in the county's road construction project plan, including related infrastructure if any.
(8) A true copy of the resolution adopted by the governing body of the municipality consenting to the road construction project when the road construction project is located, in whole or in part, within the corporate limits of any municipality.
(9) Identification of any businesses or residents that the county commission anticipates will be displaced or leave because of the road construction project, including related infrastructure, if any.
(10) A good faith estimate of the annual net property tax collections reallocated pursuant to section twenty-five of this article and other revenues, if any, to be deposited in the county's subaccount in County Road Improvement Account in the State Road Fund that will be available to finance the project, in whole or in part.
(11) Any additional information the Commissioner of Highways may reasonably require to analyze a proposed road construction project.
(b) Review of applications. -- The Commissioner of Highways shall review all proposed road construction project plans for conformance to statutory and regulatory requirements, the reasonableness of the project's budget and timetable for completion using the following criteria:
(2) Whether there is credible evidence that unless certain property tax revenues are used to finance the road construction project, in whole or in part, the project would not otherwise be feasible in the timeline proposed by the county commission;
(3) Whether the property tax revenues will leverage or be the catalyst for the effective use of state or federal funding that is available;
(4) Whether there is substantial and credible evidence that the proposed road construction project, including related infrastructure if any, is likely to be started and completed in a timely fashion;
(5) Whether the proposed project will, directly or indirectly, improve transportation in the area where the road construction project will occur benefitting county residents and facilitating commercial business development and expansion in the county;
(6) Whether the proposed road construction project, including related infrastructure if any, will directly or indirectly assist in the creation of additional long-term employment opportunities in the area and the quality of jobs created to include, but not be limited to, wages and benefits;
(9) Whether the road construction project is consistent with the goals of this article; and
(10) Whether the road construction project, including related infrastructure if any, is economically and fiscally sound using recognized business standards of finance and accounting.
(c) Additional criteria. -- The Commissioner of Highways may establish by rule additional criteria for use when evaluating applications and approving or denying the application, in whole or in part.
(d) Certification of road construction project. – When the Commissioner of Highways approves a county's road construction project application, in whole or in part, as provided in section thirty-three of this article, the commissioner shall issue to the county commission a written certificate evidencing approval of each approved project, including related infrastructure if any.
(e) Rules. – The Commissioner of Highways may propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code to implement the county road construction project application approval process and to further describe the criteria and procedures it has established in connection therewith.
§7-20-35. Creation of County Road Improvement Account in State Road Fund.
(a) Account created. – There is created in the State Road Fund a special revenue revolving fund account known as the "County Road Improvement Account" which is an interest-bearing account that shall be invested in the manner described in section nine-c, article six, chapter twelve of this code, with the interest income a proper credit to the account.
(b) County subaccount. – A separate and segregated subaccount within the account shall be established for each county that allocates property tax collections as provided in section twenty-five of this article.
(c) Additional funds. – In addition to the county property taxes collected and allocated as provided in section twenty-five of this article, funds paid into the account for the credit of any subaccount may also be derived from the following sources:
(2) Any gifts, grants, bequests, transfers, appropriations or donations which are received from any governmental entity or unit or any person, firm, foundation or corporation;
(3) Any other tax collections that may be deposited in the subaccount; and
(4) Any appropriations by the Legislature which are made for this purpose.
(d) Expenditures from account. – The Commissioner of Highways may withdraw funds from a county's subaccount only in accordance with one or more intergovernmental agreement or contracts executed by the county commission of that county.
§7-20-36. Cash basis projects; issuance of road construction special revenue bonds by Commissioner of Highways.
(a) Cash basis projects. – Each county commission that has a subaccount in the County Road Improvement Account established pursuant to this article may, in its discretion and pursuant to an intergovernmental written agreement with the county commission, authorize the Commissioner of Highways to use the moneys in its subaccount to finance the costs of road construction projects, including related infrastructure if any, in the county on a cash basis.
(b) Special revenue bonds. – Additionally, the county commission may by intergovernmental written agreement authorize the Commissioner of Highways to issue, in the manner prescribed by this article, special revenue bonds secured by certain property tax collections reallocated pursuant to section twenty-five of this article to finance or refinance all or part of a road construction project in the county, including related infrastructure if any, and pledge all or any part of the property tax collections reallocated pursuant to section twenty-five of this article for the payment of the principal of and interest on such bonds and the reserves therefor.
§7-20-37. Commissioner's authority over road construction projects accepted into the state road system; use of state road funds.
(a) Notwithstanding anything in this article to the contrary, the Commissioner of Highways has final approval of any road construction project, including related infrastructure if any. However, no state road funds may be used, singly or together with funds from any other source, for any purpose or in any manner contrary to or prohibited by the constitution and laws of this state or the federal government or where such use, in the sole discretion of the commissioner, would jeopardize receipt of federal funds.
(b) All road construction projects that are accepted as part of the state road system, and all real property interests and appurtenances, shall be under the exclusive jurisdiction and control of the Commissioner of Highways, who may exercise the same rights and authority as he or she has over other transportation facilities in the state road system.
(c) Except as provided in an intergovernmental agreement executed by one or more county commission and the Commissioner of Highways as provided in this article, a county commission shall not be required to pay for the cost of constructing, reconstructing, improving, or maintaining a road that is part of the state road system as defined in article twelve-a of this chapter or to pay any other expense fairly related to that road.
§7-20-38. Qualifying a transportation project as a public improvement.
All road construction projects authorized under this article, including related infrastructure if any, are public improvements subject to articles one-c and five-a, chapter twenty-one of this code, and either article twenty-two, chapter five of this code or article two-d, chapter seventeen of this code.
§7-20-39. Reports by Commissioner of Highways.
Each year, the Commissioner of Highways shall prepare a report giving the status of each road construction project being constructed pursuant to this article and file it by October 1, each year with the Governor, the Joint Committee on Government and Finance of the Legislature and with each county commission with which the Commissioner of Highways has an intergovernmental agreement executed pursuant to this article. The report shall include the following information:
(1) The identification, by county, of each road construction project for which an intergovernmental agreement has been executed pursuant to this article, and the status of the road construction project as of the June 30 preceding the due date of the report;
(4) The amount of the bonds issued that are outstanding as of June 30 preceding the due date of the report for each project included in the report if revenue bonds have been issued by the Commissioner of Highways;
(5) The balance as of the June 30 preceding the due date of the report of each county's subaccount in the County Improvement Account in the State Road Fund.
(6) The amount of property tax collections deposited into each county's subaccount in the County Road Improvement Account in the State Road Fund during the fiscal year ending June 30 preceding the due date of the commissioner's report.
(7) The amount the Commissioner of Highways withdrew from each county's subaccount in the County Road Improvement Account in the State Road Fund during the fiscal year ending June 30 preceding the due date of the report to pay debt service on revenue bonds issued pursuant to this article or to construct projects financed on a pay-as-you-go basis.
Subpart C. County Road Construction Special Revenue Bonds.
§7-20-40. Issuance of county road construction special revenue bonds.
(a) Special revenue bonds may be issued by the Division of Highways pursuant to an intergovernmental written agreement with the county commission to finance or refinance, in whole or in part, road construction projects, including related infrastructure if any, in an aggregate principal amount not exceeding the amount which the county commission(s) and the Commissioner of Highways mutually agree can be paid as to both principal and interest and reasonable margins for a reserve, if any, therefor from county property tax collections reallocated as provided in section twenty-five of this article. In the discretion of the Commissioner of Highways, special revenue bonds issued pursuant to this article may be issued for road construction projects, including related infrastructure if any, in two or more counties.
(b) The Commissioner of Highways issuing road construction special revenue bonds pursuant to this article shall establish a fund to deposit certain property tax collections to pay debt service on the bonds.
(c) The Commissioner of Highways shall thereafter transfer from the county's subaccount all property tax collections pledged to the payment of principal and interest of the road construction special revenue bonds into the fund established under subdivision (1) of this subsection.
(d) The road construction special revenue bonds shall be authorized to be issued by the Commissioner of Highways pursuant to the provisions of this article, and shall be secured, shall bear such date and shall mature at such time, not exceeding thirty years from the date of issue, shall bear interest at such rate or rates, including variable rates, be in such denominations, be in such form, carry such registration privileges, be payable in such medium of payment and at such place or places and such time or times and be subject to such terms of redemption as the Commissioner of Highways may authorize. Road construction special revenue bonds may be sold by the Division of Highways, at public or private sale, at or not less than the price the Commissioner of Highways determines. The road construction special revenue bonds shall be executed by manual or facsimile signature by the Commissioner of Highways. In case any Commissioner of Highways whose signature, or a facsimile of whose signature, appears on any bond ceases to be the Commission of Highways before delivery of the bonds, such signature or facsimile is nevertheless sufficient for all purposes the same as if he or she had remained in office until such delivery.
§7-20-41. Trustee for bondholders; contents of trust agreement; pledge or assignment of revenues and funds.
For bonds issued pursuant to section forty of this article, in the discretion of the Commissioner of Highways, any bonds, including refunding bonds issued by the commissioner, may be secured by a trust agreement between the commissioner and a corporate trustee, which trustee may be any bank or trust company within or without the state. Any such trust agreement may contain such binding covenants with the holders of such bonds as to any matter or provisions as are deemed necessary or advisable to the commissioner to enhance the marketability and security of such bonds and may also contain such other provisions with respect thereto as the commissioner may authorize and approve. Any trust agreement may contain a pledge or assignment of revenues to be received in connection with the financing.
§7-20-42. Refunding bonds.
Any bonds issued by the Division of Highways pursuant to section forty of this article or any other provision of this code and at any time outstanding may at any time and from time to time be refunded by the Division of Highways by the issuance of its refunding bonds in such amount as it may deem necessary to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon, to provide additional funds for approved project costs and to pay any premiums and commissions necessary to be paid in connection therewith. Any such refunding may be effected by whether the bonds to be refunded have then matured or thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the redemption of the bonds to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby. Refunding bonds shall be issued in conformance with the provisions of this article related to issuance of bonds.
§7-20-43. Obligations of Commissioner of Highways undertaken pursuant to this article not debt of state, county, municipality or any political subdivision.
(a) Bonds, including refunding bonds, issued under the authority of section forty of this article and any other obligations undertaken by the Division of Highways pursuant to this article, do not constitute a debt or a pledge of the faith and credit or taxing power of this state or of any county, municipality or any other political subdivision of this state, and the holders and owners thereof have no right to have taxes levied by the Legislature or the taxing authority of any county, municipality or any other political subdivision of this state for the payment of the principal thereof or interest thereon, but such bonds and other obligations are payable solely from the revenues and funds pledged for their payment as authorized by this article unless the bonds are refunded by refunding bonds issued pursuant to section forty of this article, which bonds or refunding bonds shall be payable solely from revenues and funds pledged for their payment as authorized by this article.
(b) All such bonds, and all documents evidencing any other obligation, shall contain on the face thereof a statement to the effect that the bonds or such other obligation as to both principal and interest are not debts of the state or any county, municipality or political subdivision thereof, but are payable solely from revenues and funds pledged for their payment as authorized by this article.
§7-20-44. Negotiability of bonds issued pursuant to this article.
Whether or not the bonds issued pursuant to section forty of this article are of such form or character as to be negotiable instruments under the Uniform Commercial Code, such bonds are negotiable instruments within the meaning of and for all the purposes of the Uniform Commercial Code, subject only to the provisions of the bonds for registration.
§7-20-45. Exemption from taxation.
All bonds issued by the Commissioner of Highways pursuant to section forty of this article, and all interest and income thereon, are exempt from all taxation by this state and any county, municipality, political subdivision or agency thereof, except inheritance taxes.
§7-20-46. Personal liability; persons executing bonds issued pursuant to this article.
Neither the Commissioner of Highways, nor any officer or employee of the Division of Highways or the Department of Transportation, or any person executing the bonds issued pursuant to section forty of this article, are liable personally on such bonds or subject to any personal liability or accountability by reason of the issuance thereof.
§7-20-47. Cumulative authority as to powers conferred; applicability of other statutes and charters; bonds issued pursuant to this article.
The provisions of part two of this article relating to the issuance of bonds shall be construed as granting cumulative authority for the exercise of the various powers herein conferred, and neither the powers nor any bonds issued hereunder are affected or limited by any other statutory provision now or hereafter in force, other than as may be provided in this article, it being the purpose and intention of this article to create full, separate and complete additional powers. The various powers conferred herein may be exercised independently and notwithstanding that no bonds are issued hereunder.
§7-20-48. Cash basis projects; termination of special allocation of property taxes; excess funds.
(a) Cash basis projects. – When special revenue bonds have been issued as provided in section forty of this article and the amount of property tax collections allocated pursuant to section twenty-five of this article, less costs of administration, collection and enforcement, exceeds the amount needed to pay project costs and annual debt service, including the funding of required debt service and maintenance reserves, if any, the additional amount remaining in the county's subaccount in the County Road Improvement Account in the State Road Fund shall be used to retire outstanding revenue bonds before their maturity date in accordance with the terms of such bonds.
(b) Termination of special allocation of property taxes. – Once the special revenue bonds issued as provided in section forty of this article are no longer outstanding or have been defeased, and no additional road construction projects have been requested and approved by the Commissioner of Highways, the reallocation of certain property tax collections as provided in section twenty-five of this article shall end by order adopted by the county commission as provided in this article.
(c) Excess funds. – After all intergovernmental agreements with the Commissioner of Highways have ended and all debt service on special revenue bonds issued under section forty of this article to finance, in whole or in part, the road construction projects has been paid or provided for, and reallocation of certain property tax collections as provided in section twenty-five of this article has ended, the Commissioner of Highways shall forward the unencumbered balance of moneys remaining in the county's subaccount in the County Road Improvement Account in the State Road Fund to the county commission of that county for deposit in the county's general fund.
§7-20-49. Reserved.
Subpart D. Miscellaneous.
§7-20-50. Powers supplemental.
(a) County Commissions. – The powers conferred by part two of this article are in addition and supplemental to the powers conferred upon county commissions by the Legislature elsewhere in this chapter of the code.
(b) Commissioner of Highways. – The powers conferred by part two of this article on the Commissioner of Highways or the Division of Highways are in addition and supplemental to the powers conferred upon the Commissioner of Highways, the Division of Highways, and the Department of Transportation by the Legislature elsewhere in this code.
§7-20-51. Public officials exempt from personal liability.
No member of a county commission or other county officer shall be personally liable on any contract or obligation executed pursuant to the authority contained in part II of this article. Nor shall such contracts or obligations or the issuance of revenue bonds by the Commissioner of Highways secured by property tax collections allocated as provided in section twenty-five of this article be considered as misfeasance in office.
§7-20-52. Severability.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase in part II of this article is for any reason held to be invalid, unlawful or unconstitutional, that decision does not affect the validity of the remaining portions of this article or any part thereof.
NOTE: The purpose of this bill is to provide for the County Local Powers Act. The bill allows county commissions to pay for the cost of infrastructure capital improvements in their respective counties utilizing impact fees, service fees and certain property tax collections and other revenues. The bill provides for fees, taxes and expenditures for county development. The bill restates short title. The bill amends its purpose and legislative findings. The bill amends certain definitions and adds definitions. The bill amends criteria and requirements to implement and collect certain fees. The bill amends authorization for county commissions to impose impact fees, services fees and other taxes. The bill provides that certain fees and taxes collected may be deposited in special fund and used to pay debt service on revenue bonds issued to finance capital improvements or to finance them on a pay-as-you-go basis. The bill makes technical corrections. The bill allows county commissions and Commissioner of Highways to enter into intergovernmental agreements for construction and modernization of state roads, bridges and related infrastructure and financing in their respective counties. The bill provides procedures for creation and finalization or project plans and amendments of plans. The bill requires notice to certain locally elected public officials and general public on proposed road, bridge and related infrastructure construction projects and project amendments, with opportunity for public comment, provides means to finance cost of proposed road, bridge and related infrastructure construction projects and project amendments. The bill allows reallocation of ad valorem property taxes after ratification of constitutional amendment of certain property tax collections to finance, in whole or in part, capital improvements to infrastructure. The bill provides for applications for a construction project and the contents of applications. The bill creates a special fund. The bill requires approval of boards of education to reallocation of regular property tax levies. The bill provides for termination of reallocation of levies. The bill authorizes Commissioner of Highways to issue revenue bonds and refunding bonds to finance road, bridge and related infrastructure projects financed, in whole or in part, by county commissions. The bill provides that all bonds are exempt from tax, are negotiable and are lawful investments. The bill provides procedures for issuance of bonds. The bill allows projects to also be constructed on pay-as-you-go basis. The bill provides that these powers are supplemental powers of county commissions and Commissioner of Highways. The bill requires reports. The bill exempts public officials from personal liability. The bill provides a severability clause and effective dates.