Bill Text: VA HB494 | 2024 | Regular Session | Prefiled
Bill Title: Virginia Fire and EMS Safety Loan Fund; created.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-02-13 - Left in Appropriations [HB494 Detail]
Download: Virginia-2024-HB494-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Title 9.1 a chapter numbered 2.2, consisting of sections numbered 9.1-220 through 9.1-230, as follows:
§9.1-220. Definitions.
As used in this chapter, unless the context requires a different meaning:
"Authority" means the Virginia Resources Authority created in Chapter 21 (§62.1-197 et seq.) of Title 62.1.
"Board" means the Joint Fire and EMS Loan Board described in §9.1-221.
"EMS" means emergency medical services.
"Fund" means the Virginia Fire and EMS Safety Loan Fund created by this chapter.
"Project" means purchases by or on behalf of a local fire department or EMS service totaling $50,000 or more (i) for capital projects to construct or modernize facilities that house firefighting equipment or vehicles or ambulance or rescue vehicles; (ii) of firefighting apparatus, ambulances, or rescue vehicles; (iii) of protective, accessory, or communication equipment for firefighting or EMS services.
§9.1-221. Joint Fire and EMS Loan Board; membership; terms; compensation.
A. The Joint Fire and EMS Loan Board (the Board) is established as a policy board within the meaning of §2.2-2100 in the executive branch of state government. The Board shall consist of six members to be appointed as follows: three members to be appointed by the Virginia Fire Services Board and three members to be appointed by the State Emergency Medical Services Advisory Board.
B. Members of the Board shall serve for terms of four years. An appointment to fill a vacancy shall be for the unexpired term. No appointee shall serve more than two successive four-year terms but neither shall any person serve beyond the time he holds the office or organizational membership by reason of which he was initially eligible for appointment.
C. The Board shall annually elect its chairman and vice-chairman from among its membership and shall adopt rules of procedure.
D. All members shall be reimbursed for expenses incurred in the performance of their duties as provided in §2.2-2825. Funding for the expenses shall be provided from the Fire Programs Fund established pursuant to §38.2-401.
E. The purpose of the Board shall be to direct the distribution of loans from the Fund to assist localities who are cost burdened in providing effective fire and EMS services. The Board shall adopt criteria for selecting localities for loan approval, with an emphasis on providing loans to localities that have no alternative options to finance projects that are needed to meet minimum standards provided by law. The Board shall meet as often as needed to carry out the duties assigned to it by this chapter.
§9.1-222. Virginia Fire and EMS Safety Loan Fund.
There shall be set apart as a permanent and perpetual fund, to be known as the Virginia Fire and EMS Safety Loan Fund, sums appropriated to the Fund by the General Assembly, all receipts by the Fund from loans made by it to localities, all income from the investment of moneys held in the Fund, and any other sums designated for deposit to the Fund from any source public or private. The Fund shall be administered and managed by the Authority as prescribed in this chapter, subject to the right of the Board, following consultation with the Authority, to direct the distribution of loans or grants from the Fund to particular localities and to establish the interest rates and repayment terms of such loans as provided in this chapter. However, the rate of interest for any loan granted pursuant to this chapter shall not exceed three percent. In order to carry out the administration and management of the Fund, the Authority is granted the power to employ officers, employees, agents, advisers, and consultants, including, attorneys, financial advisers, engineers, and other technical advisers and public accountants and, notwithstanding the provisions of any other law to the contrary, to determine their duties and compensation without the approval of any other agency or instrumentality. The Authority may disburse from the Fund its reasonable costs and expenses incurred in the administration and management of the Fund.
§9.1-223. Deposit of moneys; expenditures; investments.
All moneys belonging to the Fund shall be deposited in an account or accounts in banks or trust companies organized under the laws of the Commonwealth or in national banking associations located in Virginia or in savings institutions located in Virginia organized under the laws of the Commonwealth or the United States. The moneys in these accounts shall be paid by electronic transfer or check signed by the executive director of the Authority or other officers or employees designated by the Board of Directors of the Authority. All deposits of moneys shall, if required by the Authority, be secured in a manner determined by the Authority to be prudent, and all banks, trust companies, and savings institutions are authorized to give security for the deposits. Moneys in the Fund shall not be commingled with other moneys of the Authority. Moneys in the Fund not needed for immediate use or disbursement may be invested or reinvested by the Authority in obligations or securities that are considered lawful investments for public funds under the laws of the Commonwealth. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including any appropriated funds and all principal, interest accrued, and payments at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund.
§9.1-224. Annual audit.
The Auditor of Public Accounts, or his legally authorized representatives, shall annually audit the accounts of the Authority, and the cost of such audit services as shall be required shall be borne by the Authority. The audit shall be performed at least each fiscal year, in accordance with generally accepted auditing standards and, accordingly, include such tests of the accounting records and such auditing procedures as considered necessary under the circumstances. The Authority shall furnish copies of such audit to the Governor and to the Board.
§9.1-225. Collection of moneys due to Fund.
The Authority is empowered to collect, or to authorize others to collect on its behalf, amounts due to the Fund under any loan to a locality, including, if appropriate, taking the action required by §15.2-2659 to obtain payment of any amounts in default. Proceedings to recover amounts due to the Fund may be instituted by the Authority in the name of the Fund in the appropriate circuit court.
§9.1-226. Loans to localities.
Except as otherwise provided in this chapter, moneys in the Fund shall be used to make loans to localities to finance the cost of any project, in accordance with the criteria adopted by the Board pursuant to § 9.1-221. The localities to which loans are to be made, the purposes of the loan, the amount of each such loan, the interest rate thereon, and the repayment terms thereof, which may vary between loan recipients, shall be designated in writing by the Board to the Authority following consultation with the Authority. No loan from the Fund shall exceed the total cost of the project to be financed.
Except as set forth in this section, the Authority shall determine the terms and conditions of any loan from the Fund, which may vary between loan recipients. Each loan shall be evidenced by appropriate bonds or notes of the locality payable to the Fund. The bonds or notes shall have been duly authorized by the locality and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions, and other information as it may deem necessary or convenient. In addition to any other terms or conditions that the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the locality receiving the loan covenant perform any of the following:
1. Establish and collect rents, rates, fees, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal, and repairs of the project; (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal of and premium, if any, and interest on the loan from the Fund to the locality; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund deemed necessary or appropriate by the Authority to offset the need, in whole or part, for future increases in rents, rates, fees, or charges;
2. With respect to localities, levy and collect ad valorem taxes on all property within the jurisdiction of the locality subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund to the locality;
3. Create and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the loan from the Fund to the locality and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair, or replacement of the project or any portions thereof or other property of the locality, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable;
4. Create and maintain other special funds as required by the Authority; and
5. Perform other acts, including the conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title, and interest therein, to the Fund, or take other actions as may be deemed necessary or desirable by the Authority to secure payment of the principal of and premium, if any, and interest on the loan from the Fund and to provide for the remedies of the Fund in the event of any default in the payment of the loan, including any of the following:
a. The procurement of insurance, guarantees, letters of credit, and other forms of collateral, security, liquidity arrangements, or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;
b. The maintenance, replacement, renewal, and repair of the project; and
c. The procurement of casualty and liability insurance.
All localities borrowing moneys from the Fund are authorized to perform any acts, take any action, adopt any proceedings, and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all localities but may be structured as determined by the Authority according to the needs of the contracting localities and the Fund.
Subject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan subject to guidelines adopted by the Board.
§9.1-227. Pledge of loans to secure bonds of Authority.
The Authority is empowered at any time and from time to time to transfer from the Fund to banks or trust companies designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of the principal of and premium, if any, and interest on any or all of the bonds, as defined in § 62.1-199, of the Authority. The interests of the Fund in any obligations so transferred shall be subordinate to the rights of the trustee under the pledge. To the extent that funds are not available from other sources pledged for such purpose, any payments of principal and interest received on the assets transferred or held in trust may be applied by the trustee thereof to the payment of the principal of and premium, if any, and interest on such bonds of the Authority to which the obligations have been pledged, and if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets and apply the net proceeds from the sale to the payment of the principal of and premium, if any, and interest on such bonds of the Authority. Any assets of the Fund transferred in trust as set forth in this section and any payments of principal, interest, or earnings received thereon shall remain part of the Fund but shall be subject to the pledge to secure the bonds of the Authority and shall be held by the trustee to which they are pledged until no longer required for such purpose by the terms of the pledge. On or before January 10 of each year, the Authority shall transfer, or shall cause the trustee to transfer, to the Fund any assets transferred or held in trust as set forth in this section that are no longer required to be held in trust pursuant to the terms of the pledge.
§9.1-228. Sale of loans.
The Authority is empowered at any time and from time to time to sell, upon such terms and conditions as the Authority shall deem appropriate, any loan, or interest therein, made pursuant to this chapter. The net proceeds of sale remaining after the payment of the costs and expenses of the sale shall be designated for deposit to, and become part of, the Fund.
§9.1-229. Powers of the Authority.
The Authority is authorized to do any act necessary or convenient to the exercise of the powers granted in this chapter or reasonably implied thereby.
§9.1-230. Liberal construction of chapter.
The provisions of this chapter shall be liberally construed to the end that its beneficial purposes may be effectuated. Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, general, special, or local, the provisions of this chapter shall be controlling.
