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HB 3485

Requiring recommendation from the State Treasurer prior to issuing refunding bonds

2025 Regular Session Introduced by Jarred Cannon

State agencies must obtain a Treasurer-approved recommendation (via Debt Management) before issuing refunding bonds, with 90-day pre-sale review, centralizing debt oversight.

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Bill Summary · HB 3485

Summary — HB 3485: Requiring recommendation from the State Treasurer prior to issuing refunding bonds

Note: The materials provided include excerpts from two different statutes (an Illinois emergency management amendment and a West Virginia bonded indebtedness bill). This summary focuses on the refunding‑bond provisions that match the bill title and legislative actions supplied (West Virginia HB 3485).

Purpose

To centralize oversight of state refunding bond transactions by requiring state agencies to obtain and review a recommendation from the State Treasurer (after review by the Division of Debt Management) before issuing refunding bonds. The change is intended to better align refunding decisions with the state's overall debt position and capacity.

Key provisions

  • New requirement (effective July 1, 2025): a state agency may not issue refunding bonds unless it first receives and reviews a recommendation from the State Treasurer. (§13‑2G‑3(b))
  • Pre‑sale submission: the issuing agency must submit a recommendation request to the Director of the Division of Debt Management at least 90 days before the planned sale. The Director may waive the 90‑day deadline for good cause.
  • Treasurer review: after the Division reviews the request, the State Treasurer will recommend whether the refunding is advantageous or necessary, considering the state's total debt position, capacity, and legal compliance.
  • Rulemaking authority: the Treasurer may propose rules (including emergency rules prior to July 1, 2025) to implement these requirements.
  • Broader bill elements (truncated in the provided text): the bill also relocates and reorganizes statutes concerning general obligation bonds, sets standards for bond issuance and debt service funds, authorizes the Treasurer’s role in certain bond functions, and includes provisions on bond counsel/financial advisors, conflict‑of‑interest prohibitions, and penalties.

Who is affected

  • State agencies and entities that issue refunding bonds.
  • State Treasurer’s office and the Division of Debt Management (increased review and oversight role).
  • Bond counsel, financial advisors, underwriters and investors (procedural timing changes).
  • Taxpayers and the state’s fiscal managers (potentially affected by changes in debt management outcomes).

Procedural / timeline notes

  • New oversight requirement takes effect July 1, 2025.
  • Agencies must normally submit requests at least 90 days before bond sale; director can waive for good cause.
  • Treasurer may promulgate emergency rules prior to the effective date to implement the new process.

Legislative status & sponsors

  • Sponsor: Delegate J. Cannon (primary).
  • Actions (sample): Filed/Introduced March 18, 2025; Read first time; Referred to Finance. Companion: SB 2019.

Potential impacts (concise)

  • Centralizes fiscal oversight, which may improve coordination of refundings with statewide debt strategy.
  • Could delay some refunding transactions or change timing/costs if agencies must wait for recommendation.
  • May reduce fragmented or piecemeal refundings that could adversely affect the state’s overall debt capacity.

Compiled from official sources — confirm details with the bill’s official record.

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