Public Law 30-145 - An Act to amend section 4 of Public Law 28-71, relative to approving the terms and conditions of the issuance of Guam Waterworks Authority revenue bonds

P.O. Box 2950 Hagatiia, GC 96932 1el: (671) 472-8931 • Fax: (671) 47'.:-4826 • Email: governor@guam.gov Felix P Camacho Governor Michael W. Cruz. \t.n Lieuten,mt Grwernor The Honorable Judith T. Won Pat, Ed.D. Speaker Mina' Trenta Na Liheslaturan Gudhan 155 Hessler Street Hagatfia, Guam 96910 Dear Speaker Won Pat: MAY 19 2010 Transmitted herewith is Substitute Bill No. 365-30 (COR) "AN ACT TO AMEND SECTION 4 OF PUBLIC LAW 28-71, RELATIVE TO APPROVING THE TERMS AND CONDITIONS OF THE ISSUANCE OF GUAM WATERWORKS AUTHORITY REVENUE BONDS", which I signed into law on May 17, 2010 as Public Law 30-145. Sinseru yan Magahet, MICHAEL W. CRUZ, M.D. I Maga 'lahen Guahan para pa 'go Acting Governor of Guahan Attachment: copy of Bill I MINA'TRENTA NA LIHESLATURAN GuAifAN 2010 (SECOND) Regular Session CERTIFICATION OF PASSAGE OF AN ACT TO IMAGA'LAHEN GUAffAN This is to certify that Substitute Bill No. 365.;30 (COR), "AN ACT TO AMEND SECTION 4 OF PUBLIC LAW 28-71, RELATIVE TO APPROVING THE TERMS AND CONDITIONS OF THE ISSUANCE OF GUAM WATERWORKS AUTHORITY REVENUE BONDS", was on the 3rd day of May, 2010, duly and regularly passed. Tina Rose u:fia Barnes Legislati e Secretary Judith T. Won Pat, Ed. D. Speaker This Act was received by I Maga'lahen Guahan this Stt. day of ~\CUf , 2010, at 4:--oo o'clock~.M. APPROVED: ... Date: MIKE W. CRUZ, lltl GOVERNOR <:# GuAN AmtG ~ MAY 17 2010 Public Law No. P .L. JO-I45 Assistant Staff Officer Maga'lahi' s Office I MINA 'TRENTA NA LIHESLATURAN GUAHAN 2010 (SECOND) Regular Session Bill No. 365-30 (COR) As substituted by the Committee on Economic Development, Health & Human Services, and Judiciary and amended in the Committee of the Whole. Introduced by: T. C. Ada V. Anthony Ada F. B. Aguon, Jr. F. F. Blas, Jr. E. J.B. Calvo B. J.F. Cruz J. V. Espaldon Judith P. Guthertz, DPA T. R. Mufia Barnes Adolpho B. Palacios, Sr. v. c. pangelinan R. J. Respicio Telo Taitague Ray Tenorio Judith T. Won Pat, Ed.D. AN ACT TO AMEND SECTION 4 OF PUBLIC LAW 28 71, RELATIVE TO APPROVING THE TERMS AND CONDITIONS OF THE ISSUANCE OF GUAM WATERWORKS AUTHORITY REVENUE BONDS. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Legislative Findings and Intent. I Liheslaturan Guahan finds 3 that in order for Guam Waterworks Authority (GWA) to finance the projects 4 necessary to continue to make progress in implementing the projects described in 5 the Stipulated Order with the United States Environmental Protection Agency, 1 1 which outlines the corrective actions that GW A shall undertake, it may be 2 advantageous for GW A to issue "Build America Bonds", under which GW A 3 would pay taxable interest and receive interest subsidy payments from the federal 4 government, rather than paying tax-exempt interest. In addition, whether or not the 5 GW A bonds are Build America Bonds, the net interest rates available to GW A in 6 the financial markets may exceed the interest rate limit established in GWA's 2005 7 bond approval. 8 Section 2. Section 4 of Public Law 28-71 is hereby amended to read as 9 follows: 10 "Section 4. Approval of Guam Waterworks Authority Revenue 11 Bonds. The Guam Legislature, I Liheslaturan Guahan, pursuant to §50103 12 of Title 12 of the Guam Code Annotated, hereby approves the issuance and 13 sale by the Authority of revenue bonds pursuant to Article 2, Chapter 14, 14 Title 12, Guam Code Annotated (the 'Act') in one or more series or issues; 15 provided that the issuance, terms and conditions of the bonds shall have 16 been approved by the Guam Public Utilities Commission, and further 17 provided that such bonds shall have a principal amount not to exceed Two 18 Hundred Twenty Million Dollars ($240,000,000), shall have a final maturity 19 not later than 2055, shall bear interest at such rate or rates and shall be sold 20 for such price or prices as shall result in a net yield to the bondholders not 21 exceeding seven and one-half percent (7.5%) per annum, shall be issued and 22 sold in the manner, for the purposes and subject to the requirements and 23 limitations provided in Article 2, Chapter 14, Title 12, Guam Code 24 Annotated, and shall be issued pursuant to an Indenture in substantially the 25 form as attached to this Act as Exhibit A. Twenty Million Dollars 26 ($20,000,000) principal amount shall be used to pay the balance of the 27 government of Guam Limited Obligation (Section 30) Series 2001A bond 2 1 and any other portions of Bonds or Loans paid for by General Fund revenues 2 for which the Guam Waterworks Authority has received proceeds. In order 3 to be able to take advantage of Build America Bonds, or other federally 4 subsidized bond program, net yield to the bondholders shall be calculated by 5 subtracting any interest subsidy amounts to be received from the United 6 States in connection with such bonds from the amount of interest to be paid 7 to bondholders." 8 Section 3. Severability. If any provision of this law or its application to 9 any person or circumstance is found to be invalid or contrary to law, such 10 invalidity shall not affect other provisions or applications of this law which can be 11 given effect without the invalid provisions or application, and to this end the 12 provisions of this law are severable. 3