HB 8 — ELECTRIC GENERATING FACILITY ECON DISTRICTS

or (3) as a person with a financial or other interest in a business that is party to a contract, enter into a contract with the authority without there being public notice of the contract, a competitive bidding process for entry into the contract and full disclosure of that financial HB 8/a Page 4 or other interest.

h (2) violated the policies or procedures g o t hr adopted by the authority;

or g e i k (3) developed a direct, substantial conflict h r i s of interest in the business of the authority.

h , t, SECTION 5.

[NEW MATERIAL ] AUTHORITY--POWERS--DUTIES.-- e u g e b l e e h A.

An authority is a political subdivision of the n d d i = = o h state that may, in accordance with law and to effectuate the l ] b ,d i a º e purposes of the district it governs:

r i = r t e w d m a n o (1) have perpetual existence;

d(2) msue :and be sued;

b e d s º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 6 - e a n e d r e l u [ A d (2) sue and be sued;

HB 8/a Page 5 (8) create and define the duties of advisory committees;

h (12) issue refunding revenue bonds to g o t hr refinance, pay or discharge all or part of its outstanding g e i k revenue bonds;

h r i s (13) impose liens;

h , t, (14) acquire, dispose of or encumber real or e u g e b l e e h personal property or interests in real or personal property, n d d i = = o h including leases and easements;

l ] b ,d i a º e (15) manage the land and property constituting rand iassociated =with rthe tauthority ewithin wthe ddistrict, mincluding aby nimposing orental charges and associatedfees withfor the authorityuse withinof thethat district,land dand mproperty; :

b(16) esell, dtransfer sor ºconvey oreal tor npersonal =property .216108.3AICor Februaryinterests 13,in 2020real (3:58pm)or spersonal kproperty macquired e - 7 - e a n e d r e l u [ A d including by imposing rental charges and fees for the useauthority; of that land and property;

Hfl1º(17) (16)alter exercise the power of eminent domain within the boundaries of the district aswith provided by law for the condemnationapproval of privatethe propertycounties forthat publicare usepart withof just compensation;»Hfl1 Hfl1º(17)»Hfl1 Hfl1º(16)»Hfl1 sell, transfer or convey real or personal property or interests in real or personal property acquired by the authority;district;

Hfl1º(18) (18)»»Hfl1establish Hfl1º(17)»Hfl1standards alterand thelong-term boundariesdevelopment ofplans; the district with the approval of the counties that are part of the district;

Hfl1ºHB (19)»Hfl18/a Hfl1º(18)»Hfl1Page establish6 standards(19) andapply long-termto developmenta plans;public or private source for a loan, grant, guarantee or other type of financial assistance;

Hfl1º(20)»Hfl1and Hfl1º(19)»Hfl1(20) applyexercise tothe arights publicand orpowers privatenecessary sourceor forincidental ato loan,or grant,implied guaranteeby orthe otherspecific hpowers typegranted ofby financialthis assistance;section.

SJCºand»SJCB. u » r Hfl1º(21)»Hfl1 Hfl1º(20)»Hfl1 exercise the t h g e l i rights and powers necessary or incidental to or implied by the h r i s specific powers granted by this section SJCº ;

and»SJC h , e h t u g SJCº.»SJC e b l e e , gh SJCºHfl1º(22)»Hfl1 Hfl1º(21)»Hfl1 by n d d i = = o h resolution, delegate to a member or agent of the authority any l ] b ,d i a º r e r = of its powers, except the power to:

t e w d m a n o (a) adopt authority policies or d m :

b r e t º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 8 - e a n e d r e l u [ A d procedures;

(b) initiate or continue legal action;

(c) establish policies on the use of revenue;

(d) acquire real or personal property or interests in real or personal property;

(e) expand the district;

or (f) issue bonds.»SJC B.

and h (4) comply with all applicable state and g o t hr federal laws, ordinances or rules enacted by the county having g e i k jurisdiction over the district's land or real property.

h r i s SECTION 6.

[NEW MATERIAL ] REVENUE BONDS--EXEMPTION FROM h , t, e u g TAXATION.--The bonds authorized by the Electric Generating e b l e e h Facility Economic District Act, the income from those bonds, n d d i = = o h mortgages or other security instruments executed as security lfor ]those bbonds, ,dlease iagreements aauthorized ºby ethe rElectric iGenerating =Facility rEconomic forDistrict thoseAct bonds,and leaserevenue agreementsderived authorizedfrom bya thelease Electricor tsale eby wan dauthority mare aexempt nfrom otaxation Generatingby Facilitythe EconomicHB District8/a ActPage and7 revenuestate derivedand dits msubdivisions. :

b e d s º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 9 - e a n e d r e l u [ A d from a lease or sale by an authority are exempt from taxation by the state and its subdivisions.

[NEW MATERIAL ] BONDING AUTHORITY.-- A.

The authority may appoint a commercial bank trust department to act h as paying agent or trustee of the revenues and to administer g o t hr the payment of principal of and interest on the bonds.

g e i k D.

Except as otherwise provided in the Electric h r i s Generating Facility Economic District Act, revenue bonds:

h , t, (1) may have interest, principal value or any e u g e b l e e h part thereof payable at intervals or at maturity as may be n d d i = = o h determined by the authority;

l ] b ,d i a º e (2) may be subject to a prior redemption at rthe idistrict's =option rat ta etime wand dupon mterms aand nHB o8/a thePage district's8 optionconditions, atwith aor timewithout andthe uponpayment termsof anda conditions,premium, das mdetermined :by the authority;

b e d s º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 10 - e a n e d r e l u [ A d with or without the payment of a premium, as determined by the authority;

(5) shall be sold for cash at, above or below par and at a price that results in a net effective interest rate that does not exceed the maximum permitted by the Public Securities Act and the Public Securities Short-TermShort- Term Interest Rate Act;

(1) declares the necessity for issuing revenue h bonds;

g o t hr (2) authorizes the issuance of revenue bonds g e i k by an affirmative vote of a majority of all the members of the h r i s authority;

and h , t, (3) designates the sources of revenues to be e u g e b l e e h pledged to the repayment of the revenue bonds.

n d d i = = o h SECTION 8.

[NEW MATERIAL ] REFUNDING BONDS.-- l ] b ,d i a º e A.

An authority that has issued bonds in HB 8/a Page 9 accordance rwith ithe =Electric rGenerating tFacility eEconomic wDistrict dAct mmay aissue nrefunding obonds withfor the Electricpurpose Generatingof Facilityrefinancing, Economicpaying Districtand Actdischarging mayall dor many :part of outstanding bonds for the:

b e d s º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 11 - e a n e d r e l u [ A d issue refunding bonds for the purpose of refinancing, paying and discharging all or any part of outstanding bonds for the:

h B.

An authority may pledge irrevocably for the g o t hr payment of interest, principal and premium, if any, on g e i k refunding bonds the appropriate pledged revenues, which may be h r i s pledged to an original issue of bonds.

h , t, C.

Refunding bonds may be issued separately or in e u g e b l e e h combination in one series or more.

n d d i = = o h D.

Refunding bonds shall be authorized by lHB ]8/a bPage ,d10 i a º e resolution.

Bonds that are refunded shall be paid at maturity ror ion =any rpermitted tprior eredemption wdate din mthe aamounts, nat othe ortime onand anyplaces permittedand, if called prior redemptionto datematurity, in accordance with any applicable notice provisions, all as provided in the amounts,proceedings atauthorizing dthe missuance :of the refunded bonds or otherwise appertaining thereto, except for any such bond that is voluntarily surrendered for exchange or payment by the holder or owner.

b e d s º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 12 - e a n e d r e l u [ A d the time and places and, if called prior to maturity, in accordance with any applicable notice provisions, all as provided in the proceedings authorizing the issuance of the refunded bonds or otherwise appertaining thereto, except for any such bond that is voluntarily surrendered for exchange or payment by the holder or owner.

The proceeds of refunding bonds, including accrued interest and premiums appertaining to the sale of refunding bonds, shall be immediately applied to the retirement of the bonds being refunded or placed in escrow in a commercial bank or trust company that possesses and exercises trust powers h and that is a member of the federal deposit insurance u » r corporation.

The proceeds shall be applied to the principal t h g e l i of, interest on and any prior redemption premium due in h r i s connection with the bonds being refunded;

provided that the h , e h refunding bond proceeds, including accrued interest and t u g e b l e e , gh premiums appertaining to a sale of refunding bonds, may be n d d i = = o h applied to the establishment and maintenance of aHB reserve8/a fundPage l11 ] b ,d i a ºreserve rfund and to the payment of expenses incidental to the refunding and ethe rissuance =of tthe erefunding wbonds, dthe minterest aon nthose obonds and the issuanceprincipal of thethose refunding bonds, theor both interest onand thoseprincipal das mthe :authority determines.

b r e t º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 13 - e a n e d r e l u [ A d bonds and the principal of those bonds, or both interest and principal as the authority determines.

provided that the par value of the certificates of deposit is collateralized by a pledge of obligations or by a pledge of payment that is h unconditionally guaranteed by the United States;

and further u » r provided that the par value of those obligations is at least t h g e l i seventy-five percent of the par value of the certificates of h r i s deposit.

Such proceeds and investments in escrow, together h , e h with any interest or other income to be derived from any such t u g e b l e e , gh investment, shall be in an amount at all times sufficient as to nprincipal, dinterest, dany iHB =8/a =Page o12 h principal, interest, any prior redemption premium due and any l ] b ,d i a º r charges of the escrow agent payable therefrom to pay the bonds ebeing rrefunded =as tthey ebecome wdue dat mtheir arespective nmaturities oor beingat refundedany asdesignated theyprior becomeredemption duedate ator theirdates respectivein dconnection mwith :which the district shall exercise a prior redemption option.

b r e t º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 14 - e a n e d r e l u [ A d maturities or at any designated prior redemption date or dates in connection with which the district shall exercise a prior redemption option.

(2) may be subject to prior redemption at the district's option at a time or times and upon terms and h conditions with or without payment of premium or premiums, as u » r determined by the authority;

t h g e l i (3) may be serial in form and maturity or may h r i s consist of a single bond payable in one or more installments or h , e h may be in another form, as determined by the authority;

and tHB u8/a gPage e13 b l e e , gh (4) shall be exchanged for the bonds and any n d d i = = o h matured unpaid interest being refunded at not less than par or l ] b ,d i a º r sold at public or negotiated sale at, above or below par and at e r = t e w d m a n o a price that results in a net effective interest rate that does dnot mexceed :the maximum permitted by the Public Securities Act.

b r e t º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 15 - e a n e d r e l u [ A d not exceed the maximum permitted by the Public Securities Act.

[NEW MATERIAL ] BONDS NOT OBLIGATION OF THE STATE OR A COUNTY.--Except as otherwise provided in the Electric Generating Facility Economic District Act, all bonds or other obligations issued pursuant to that act are payable solely from the revenues of the district that may be pledged to the payment of such obligations, and the bonds or other obligations shall not create an obligation, debt or liability of the state or any other of its political subdivisions.

h SECTION 10.

[NEW MATERIAL ] DISSOLUTION.--The governing u » r body of the county that formed the district and the governing t h g e l i bodies of any counties that have become part of the district h r i s may, by majority vote, agree to unwind and dissolve the hdistrict ,and eHB h8/a districtPage and14 dismiss the authority members if they find the t u g e b l e e , gh district is not meeting the needs of the community in creating n d d i = = o h jobs or fostering economic development.

The assets and all l ] b ,d i a º r debts and obligations of the district shall be transferred to e r = t e w d m a n o and assumed by the counties as set forth in the unwinding or ddissolution magreement. :

b r e t º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 16 - e a n e d r e l u [ A d dissolution agreement.

[NEW MATERIAL] LIMITATION OF APPLICABILITY.--No provision of the Electric Generating Facility Economic District Act or Section 12 of this 2020 act shall affect an operating HCEDCºcoal-fueled fossil fuel electric generating facility or fossil fuel electric generating facility that»HCEDC HCEDCºcoal-fueled electric generating facility that is owned by a non-investor-owned electric utility or a coal-fueled electric generating facility that is owned by a non-investor-owned electric utility and»HCEDCand has been or is in the process of being retired unless and to the extent the owner of such a facility and any existing lienors to such a facility agree in writing that such a facility may be affected by the powers of the authority or the governing body of a county.

h"ELECTRIC "[NEW MATERIAL] ELECTRIC GENERATING FACILITY ECONOMIC u » r DISTRICT GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--RATE--USE OF t h g e l i REVENUE.-- h r i s A.

A majority of the members of the governing body h , e h of a county within which a county electric generating facility t u g e b l e e , gh economic district is located SCORCº and a bordering county nHB d8/a dPage i15 = = o h within twenty miles of a qualifying electric generating lfacility ] b ,d i a º r facility»SCORC may enact an ordinance imposing an excise tax of eup rto =one-fourth tpercent eof wthe dgross mreceipts aof nany operson upengaging toin one-fourthbusiness percentin of the grosscounty receiptsor county area for the privilege of anyengaging personin dbusiness min :the county or county area.

b r e t º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e - 17 - e a n e d r e l u [ A d engaging in business in the Hfl1ºcounty or»Hfl1 county area for the privilege of engaging in business Hfl1ºin the county or county area»Hfl1.

SFCº Revenue from a county h electric generating facility economic district gross receipts u » r tax shall not be used for any other purpose.»SFC"purpose." t h g e l i SECTION 13.

EMERGENCY.--It is necessary for the public h r i s peace, health and safety that this act take effect immediately.

hHB ,8/a ePage h16 t u g e b l e e , gh - 18 - n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .216108.3AIC February 13, 2020 (3:58pm) s k m e e a n e d r e l u [ A d