HB 847 — Virginia Resiliency Authority; established, definitions, report.

A person appointed to fill a vacancy may be appointed to serve two additional terms.

D.

Members of the Board shall receive such compensation for the performance of their duties as HB847H1 2 of 6 provided in § 2.2-2813.

All members shall be reimbursed for all reasonable and necessary expenses incurred in the performance of their duties as provided in §§ 2.2-2813 and 2.2-2825.

Funding for the costs of compensation and expenses of the members shall be provided by the Authority.

E.

The Board shall also elect a secretary and a treasurer, who need not be members of the Board, and may also elect other subordinate officers, who need not be members of the Board.

The chairman and the vice-chairman, with approval by the Board, shall create an executive committee of the Board.

The Board may also form advisory committees, which may include representatives who are not members of the Board, to undertake more extensive study and discussion of the issues before the Board.

F.

A majority of the members shall constitute a quorum for the transaction of the Authority's business, and no vacancy in the membership shall impair the right of a quorum to exercise the rights and perform all duties of the Authority.

The meetings of the Board shall be held at least quarterly or at the call of the chairman.

The Board shall appoint an executive director who shall not be a member of the Board and who shall serve at the pleasure of the Board and carry out such powers and duties conferred upon him by the Board.

§ 2.2-2381.

Powers of Authority.

The Authority is granted all powers necessary or convenient for the carrying out of its statutory purposes, including the power to:

1.

Sue and be sued, implead and be impleaded, complain, and defend in all courts;

2.

Adopt, use, and alter at will a common seal;

3.

Acquire any project and property, real, personal, or mixed, tangible or intangible, or any interest therein, by purchase, gift, or devise and to sell, lease (whether as lessor or lessee), transfer, convey, or dispose of any project or property, real, personal, or mixed, tangible or intangible or any interest therein, at any time acquired or held by the Authority on such terms and conditions as may be determined by the Board;

4.

Adopt a strategic plan pursuant to and plan, develop, undertake, carry out, construct, equip, improve, rehabilitate, repair, furnish, maintain, and operate projects pursuant to such plan;

5.

Adopt an annual budget for the Authority's capital improvements and operations;

6.

Adopt, alter, and repeal bylaws, rules, and regulations governing the manner in which its business shall be transacted and the manner in which the power of the Authority shall be exercised and its duties performed.

Such bylaws, rules, and regulations may provide for such committees and their functions as the Authority may deem necessary and expedient.

Such bylaws, rules, and regulations shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.);

7.

Make and enter into all contracts and agreements necessary or incidental to the performance of its duties, the furtherance of its purposes, and the execution of its powers under this article, including interstate compacts that have been authorized by the General Assembly and where necessary consented to by the United States Congress and agreements with any person or federal agency;

8.

Employ, in its discretion, consultants, attorneys, architects, engineers, accountants, financial experts, investment bankers, managers, and such other employees and agents as may be necessary, and to fix their compensation to be payable from funds made available to the Authority;

and 9.

Receive and accept from any federal or private agency, foundation, corporation, association, or person grants or donations of money, or real or personal property for the benefit of the Authority, and to receive and accept from the Commonwealth or any state, and any municipality, county, or other political subdivision thereof and from any other source, aid or contributions of either money, property, or other things of value, to be held, used, and applied for the purposes for which such grants and contributions may be made.

§ 2.2-2382.

Additional powers of Authority.

The Authority shall have the following additional powers:

1.

Borrow money, make and issue bonds including bonds as the Authority may determine to issue for the purpose of accomplishing the purposes set forth in § 2.2-2381 or for refunding bonds previously issued by the Authority, whether such outstanding bonds have matured or are then subject to redemption, or any combination of such purposes;

secure the payment of all bonds, or any part thereof, by pledge, assignment, or deed of trust of all or any of its revenues, rentals, and receipts or of any project or property, real, personal, or mixed, tangible or intangible, or any rights and interest therein;

make such agreements with the purchasers or holders of such bonds or with others in connection with any such bonds, whether issued or to be issued, as the Authority shall deem advisable;

and in general to provide for the security for said bonds and the rights of holders thereof.

However, the total principal amount of bonds, including refunding bonds, outstanding at any time shall not exceed $50 million, excluding from such limit any revenue bonds.

The Authority shall not issue any bonds, other than revenue bonds, that are not specifically authorized by a bill or resolution passed by a majority vote of those elected to each house of the General Assembly;

2.

Serve as a non-federal sponsor and enter into a legal agreement with the U.S.

Army Corps of of 6 Eng3.

Enter into and execute agreements with the federal government, including the U.S.

Department of Defense for support for flood control initiatives to increase the resiliency related to U.S.

Department of Defense installations;

4.

Coordinate, with technical and administrative support from the Department of Conservation and Recreation, the execution of the Virginia Coastal Resilience Master Plan, the Virginia Flood Protection of life, property damage, and negative impacts on the environment;ter quality programs to minimize loss 5.

Administer, with technical assistance and support from the Department of Conservation and Recreation, the Virginia Community Flood Preparedness Fund as established in § 10.1-603.25;

6.

In consultation with the Secretary of Natural and Historic Resources and the Director of the Department of Conservation and Recreation, seek the assistance of the Department of Conservation and Rec7.

In consultation with the Secretary of Transportation and the Commissioner of Highways, seek the assistance of the Department of Transportation with transportation planning, engineering, and construction for flood mitigation and assistance with coordination with the U.S.

Army Corps of H Engineers;

and 8.

Accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, part, any of the purposes of this article.

All federal moneys accepted under this section shallUber in accepted and expended by the Authority upon such terms and conditions as are prescribed by the United States and as are consistent with state law;

and all state moneys accepted under this section sSall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the Commonwealth.

E temporary bonds;

lost or destroyed bonds;

faith and credit of state and political subdivisions not pledged;

expenses;

trust indenture or agreement securing bonds;

trust funds;

proceedings to enforce rights;

securities;

refunding bonds.

S A.

The bonds of each issue shall be dated, shall bear interest at such rates as are fixed by the Authority, or as may be determined in such manner as the Authority may provide, including the U mature at such time not exceeding 40 years from their date as may be determined by the Authority, andall may be made redeemable before maturity, at the option of the Authority, at such price and underSsuch terms and conditions as may be fixed by the Authority prior to the issuance of the bonds.

The Authority shall determine the form of bonds and their manner of execution, and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at any bank or trust comIany the Authority or, if so authorized by the Authority, shall bear his facsimile signature, and the official seal of the Authority, or, if so authorized by the Authority, a facsimile thereof shall be impressed or imprinted thereon and attested by the secretary or any assistant secretary of the Authority, or, if so authorized by the Authority, with the facsimile signature of such secretary or assistant secretTry.

Any coupons attached to bonds issued by the Authority shall bear the signature of the chairman or of whose signature appears on any bonds or coupons ceases to be an officer before the delivery of themile bonds, his signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery and any bonds may bear the facsimile signature of, or may be signed by, such persons as at the actual time of the execution of such bonds shall be the proper officers to sign such bonds although at the date of such bonds such persons may not have been such determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon Bonds.

Bonds issued in registered form may be issued under a system of book-entry for recording the 4 ownership and transfer of ownership of rights to receive payment of principal of, and premium oH, if companies, financial institutions, or other entities or persons, within or without the Commonwealth fort the authentication, registration, transfer, exchange, and payment of the bonds, or may provide such services itself.

The Authority may sell such bonds in such manner, either at public or private sale, and for such price as it may determine will best effect the purposes of this article.

The proceeds of the bonds of each issue shall be used solely for the purposes, and in furtherance of the powers, of the Authority as may be provided in the resolution authorizing the issuance of such bonds HB847H1 4 of 6 or in a trust agreement authorized by subsection B securing the bonds.

In addition to the above powers, the Authority may issue interim receipts or temporary bonds as provided in § 15.2-2616 and execute and deliver new bonds in place of bonds mutilated, lost, or destroyed as provided in § 15.2-2621.

No obligation of the Authority shall be deemed to constitute a debt, or pledge of the faith and credit, of the Commonwealth or of any political subdivision thereof, but shall be payable solely from the revenues and other funds of the Authority pledged thereto.

All such obligations shall contain on the face thereof a statement to the effect that the Commonwealth, any political subdivision thereof, and the Authority shall not be obligated to pay the same or the interest thereon except from revenues and other funds of the Authority pledged thereto, and that neither the faith and credit nor the taxing power of the Commonwealth or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligations.

All expenses incurred in carrying out the provisions of the article shall be payable solely from funds provided under the provisions of this article, and no liability shall be incurred by the Authority beyond the extent to which moneys have been provided under the provisions of this article.

B.

In the discretion of the Authority, any bonds issued under the provisions of this article may be secured by a trust indenture or agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth.

The trust indenture or agreement or the resolution providing for the issuance of the bonds may (i) pledge or assign the revenues to be received and provide for the mortgage of any project or property or any part thereof and (ii) contain provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants providing for the repossession and sale by the Authority or any trustees under any trust indenture or agreement of any project, or part thereof, upon any default under the lease or sale of such project, setting forth the duties of the Authority in relation to the acquisition of property and the planning, development, acquisition, construction, rehabilitation, establishment, improvement, extension, enlargement, maintenance, repair, operation, and insurance of the project in connection with which the bonds shall have been authorized;

the amounts of rates, rents, fees, and other charges to be charged;

the collection of such rates, rents, fees, and other charges;

the custody, safeguarding, and application of all moneys;

and conditions or limitations with respect to the issuance of additional bonds.

It shall be lawful for any national bank with its main office in the Commonwealth or any other state or any bank or trust company incorporated under the laws of the Commonwealth or another state that may act as depository of the proceeds of bonds or of revenues to furnish the indemnifying bonds or to pledge the securities required by the Authority.

Any trust indenture or agreement or resolution may set forth the rights of action by bondholders.

In addition to the foregoing, any such trust indenture or agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the bondholders including, without limitation, provisions for the assignment to a corporate trustee or escrow agent of any rights of the Authority in any project owned by, or leases or sales of any projects made by, the Authority.

All expenses incurred in carrying out the provisions of the trust indenture or agreement or resolution or other agreements relating to any project, including those to which the Authority may not be a party, may be treated as a part of the cost of the operation of the project or projects.

C.

All moneys received pursuant to the authority of this article, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this article.

The resolution authorizing the bonds of any issue or the trust indenture or agreement or resolution securing such bonds shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as a trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to the regulations as this article and the trust indenture or agreement or resolution may provide.

D.

Any holder of bonds issued under the provisions of this article or any of the coupons appertaining thereto, and the trustee under any trust indenture or agreement or resolution, except to the extent the rights given may be restricted by the trust indenture or agreement or resolution authorizing the issuance of the bonds, may either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the Commonwealth or granted hereunder or under the trust indenture or agreement or resolution, and may enforce and compel the performance of all duties required by this article or by the trust indenture or agreement or resolution to be performed by the Authority or by any officer thereof, including the fixing, charging, and collecting of rates, rentals, fees, and other charges.

E.

Bonds issued by the Authority under the provisions of this article are made securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control of 6 and received by any state or municipal officer or any agency or political subdivision of theted with Commonwealth for any purpose for which the deposit of bonds or obligations of the Commonwealth is now or may hereafter be authorized by law.

F.

The Authority may provide for the issuance of refunding bonds of the Authority for the purpose of refunding any bonds then outstanding that have been issued under the provisions of this article, date of redemption of bonds.

The issuance of the bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Authority in respect of the same shall be governed by the provisions of this article insofar as they may be applicable.

§ 2.2-2384.

Appropriations by any government.

Any government may make appropriations for the acquisition, construction, improvement, the Authority.r operation of any project acquired, constructed, improved, maintained, or operated by § 2.2-2385.

Conveyance, lease, or transfer of property by a city or county to the Authority.

Any city or county within the Commonwealth, in order to provide for the construction, H reconstruction, improvement, repair, or management of any project, or in order to accomplish any of the purposes of this article, may, with or without consideration or for a nominal consideration, lease, sell, city or county.rwise transfer to the Authority any real, personal, or mixed property located wiUhin such § 2.2-2386.

Reporting requirement.

The Board, promptly following the close of the fiscal year, shall submit an annual report ofSthe Authority's activities for the preceding year to the Chairman of the House Committee on Agriculture, Chesapeake and Natural Resources and the Chairman of the Senate Committee on Agriculture, E financial statement covering the operation of the Authority during such year.te operating and § 2.2-2387.

Department of Emergency Management.

Nothing in this article shall be construed to hinder the Department of Emergency Management Srom completing its duties in response to an emergency.

§ 10.1-603.25.

Virginia Community Flood Preparedness Fund;

loan and grant program.

U be known as the Virginia Community Flood Preparedness Fund.

All sums that are designated for deposito in the Fund from revenue generated by the sale of emissions allowances pursuant to subdivision S 1 of § 10.1-1330, all sums that may be appropriated to the Fund by the General Assembly, all receipts by the Fund from the repayment of loans made by it to local governments, all income from the investment of moneys held in the Fund, and any other sums designated for deposit to the Fund from any source,I Commonwealth that are eligible for deposit in the Fund under federal law, shall be designated forby the deposit to the Fund.

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 Thall remain in the Fund.

All loans and grants provided under this article shall be deemed to promote the pubB.

Moneys in the Fund shall be used solely for the purposes of enhancing flood prevention orE protection and coastal resilience as required by this article.

The Authority shall manage the Fund and shall establish interest rates and repayment terms of such loans as provided in this article in accordance with a memorandum of agreement with the Department.

The Authority may disburse from the Fund its reasonable costs and expenses incurred in the management of the Fund.

The Department shall direct disC.

The Authority is authorized at any time and from time to time to pledge, assign, or transfer from the Fund or any bank or trust company designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of principal of, premium, if any, and interest Bn any and all bonds, as defined in § 62.1-199, issued to finance any flood prevention or protection proje4t undertaken pursuant to the provisions of this article.

In addition, the Authority is authorizedHat any time loan or interest thereon made pursuant to this article.

The net proceeds of the sale remaining after payment of costs and expenses shall be designated for deposit to, and become part of, the Fund.

D.

The Fund shall be administered by the Department Virginia Resiliency Authority as prescribed in this article established by § 2.2-2378 with technical assistance and administrative support from the Department.

The Department, in consultation with the Secretary of Natural and Historic Resources and the Special Assistant to the Governor for Coastal Adaptation and Protection, shall establish guidelines HB847H1 6 of 6 regarding the distribution and prioritization of loans and grants, including loans and grants that support flood prevention or protection studies of statewide or regional significance.

E.

Localities shall use moneys from the Fund primarily for the purpose of implementing flood prevention and protection projects and studies in areas that are subject to recurrent flooding as confirmed by a locality-certified floodplain manager.

Moneys in the Fund may be used to mitigate future flood damage and to assist inland and coastal communities across the Commonwealth that are subject to recurrent or repetitive flooding.

No less than 25 percent of the moneys disbursed from the Fund each year shall be used for projects in low-income geographic areas.

Priority shall be given to projects that implement community-scale hazard mitigation activities that use nature-based solutions to reduce flood risk.

F.

Any locality is authorized to secure a loan made pursuant to this section by placing a lien up to the value of the loan against any property that benefits from the loan.

Such a lien shall be subordinate to each prior lien on such property, except prior liens for which the prior lienholder executes a written subordination agreement, in a form and substance acceptable to the prior lienholder in its sole and exclusive discretion, that is recorded in the land records where the property is located.

G.

Any locality using moneys in the Fund to provide a loan for a project in a low-income geographic area is authorized to forgive the principal of such loan.

If a locality forgives the principal of any such loan, any obligation of the locality to repay that principal to the Commonwealth shall not be forgiven and such obligation shall remain in full force and effect.

The total amount of loans forgiven by all localities in a fiscal year shall not exceed 30 percent of the amount appropriated in such fiscal year to the Fund by the General Assembly.

2.

That the provisions of §§ 2.2-2382 through 2.2-2385 of the Code of Virginia, as created by this act, shall become effective on July 1, 2023.

3.

That the Secretary of Natural and Historic Resources and the Secretary of Transportation, in consultation with the Virginia Resiliency Authority, as created by this act, shall make further recommendations regarding the organization of the Virginia Resiliency Authority.