ENGROSSED
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 467
(By Senators Burdette, Mr. President, and Boley,
By Request of the Executive)
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[Originating in the Committee on Finance;
reported March 30, 1993.]
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A BILL to amend and reenact sections three and four, article
twenty-nine-a, chapter sixteen of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating
to the hospital finance authority; defining terms;
terminating the authority; and transferring its duties to
the division of debt management of the board of investments.
Be it enacted by the Legislature of West Virginia:
That sections three and four, article twenty-nine-a, chapter
sixteen of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 29A. WEST VIRGINIA HOSPITAL FINANCE AUTHORITY ACT.
§16-29A-3. Definitions.
As used in this article, unless the context clearly requires
a different meaning:
(1) "Authority" means the West Virginia hospital finance
authority created by section four of this article, the duties,
powers, responsibilities and functions of which are specified in
this article;
(2) "Board" means the West Virginia hospital finance board
created by section four of this article, which shall manage and
control the authority through the thirtieth day of June, one
thousand nine hundred ninety-three;
(3) "Bond" means a revenue bond issued by the authority to
effect the purposes of this article;
(4) "Construction" means and includes reconstruction,
enlargement, improvement and providing furnishings or equipment;
(5) "Direct provider of health care" means a person or
organization whose primary current activity is the provision of
health care to individuals and includes a licensed or certified
physician, osteopath, dentist, nurse, podiatrist or physician's
assistant or an organization comprised of these health
professionals or employing these health professionals;
(6) "Hospital" means a corporation, association, institution
or establishment for the care of those who require medical
treatment, which may be a public or private corporation or
association or state owned or operated establishment and
specifically includes nursing homes which are licensed under this
chapter or those facilities certified under the federal Social
Security Act as intermediate care facilities for the mentally
retarded;
(7) "Hospital facilities" means any real or personal
property suitable and intended for, or incidental or ancillaryto, use by a hospital and includes: Outpatient clinics;
laboratories; laundries; nurses, doctors or interns residences;
administration buildings; facilities for research directly
involved with hospital care; maintenance, storage or utility
facilities; parking lots and garages; and all necessary, useful
or related equipment, furnishings and appurtenances and all lands
necessary or convenient as a site for the foregoing and
specifically includes any capital improvements to any of the
foregoing. "Hospital facilities" specifically includes office
facilities not less than eighty percent of which are intended for
lease to direct providers of health care and which are
geographically or functionally related to one or more other
hospital facilities if the authority determines that the
financing of the office facilities is necessary to accomplish the
purposes of this article;
(8) "Hospital loan" means a loan made by the authority to a
hospital and specifically includes financings by the authority
for hospital facilities pursuant to lease-purchase agreements,
installment sale or other similar agreements;
(9) "Note" means a short-term promise to pay a specified
amount of money, payable and secured as provided pursuant to this
article and issued by the authority to effect the purposes of
this article;
(10) "Project costs" means the total of the reasonable or
necessary costs incurred for carrying out the works and
undertakings for the acquisition or construction of hospital
facilities under this article. "Project costs" includes, but is
not limited to, all of the following costs: The costs ofacquisition or construction of the hospital facilities; studies
and surveys; plans, specifications, architectural and engineering
services; legal, organization, marketing or other special
services; financing, acquisition, demolition, construction,
equipping and site development of new and rehabilitated
buildings; rehabilitation, reconstruction, repair or remodeling
of existing buildings; interest and carrying charges during
construction and before full earnings are achieved and operating
expenses before full earnings are achieved or a period of one
year following the completion of construction, whichever occurs
first, and a reasonable reserve for payment of principal of and
interest on bonds or notes of the authority. "Project costs"
shall also include reimbursement of a hospital for the foregoing
costs expended by a hospital from its own funds or from money
borrowed by the hospital for such purposes before issuance and
delivery of bonds or notes by the authority for the purpose of
providing funds to pay the project costs. "Project costs" also
specifically includes the refinancing of any existing debt of a
hospital necessary in order to permit the hospital to borrow from
the authority and give adequate security for the hospital loan.
The determination of the authority with respect to the necessity
of refinancing and adequate security for a hospital loan is
conclusive;
(11) "Revenue" means any money or thing of value collected
by, or paid to, the authority as principal of or interest,
charges or other fees on hospital loans, or any other collections
on hospital loans made by the authority to hospitals to finance
in whole or in part the acquisition or construction of anyhospital facilities, or other money or property which is received
and may be expended for or pledged as revenues pursuant to this
article.
§16-29A-4. Creation of authority and board; status and members
of board.
The West Virginia hospital finance authority is hereby
created. The authority is a body corporate and a governmental
instrumentality of the state. The exercise by the authority of
the powers conferred by this article and the carrying out of its
purposes and duties is considered and held to be, and are hereby
determined to be, essential governmental functions and for a
public purpose. The West Virginia hospital finance authority
shall cease to exist after the thirtieth day of June, one
thousand nine hundred ninety-three, and on the first day of July,
one thousand nine hundred ninety-three, and thereafter, all
powers conferred by this article to the West Virginia hospital
finance authority shall be exercised by the West Virginia board
of investments, division of debt management, as established by
the provisions of article six-a, chapter twelve of this code.
Up until the first day of July, one thousand nine hundred
ninety-three, the authority shall be controlled, managed and
operated by the seven-member board known as the West Virginia
hospital finance board, which is hereby created. The board shall
consist of the director of the state department of health and the
state treasurer as members ex officio of the board. The other
five members of the board shall be appointed by the governor, by
and with the advice and consent of the Senate, and shall serve
terms of two, three, four, five and six years, respectively. Thesuccessor of each appointed member shall be appointed for a term
of six years in the same manner as the original appointments were
made, except that any person appointed to fill a vacancy
occurring prior to the expiration of the term for which his or
her predecessor was appointed shall be appointed only for the
remainder of the term. No more than three of the appointed board
members shall at any one time belong to the same political party.
Appointed board members may be reappointed to serve additional
terms. The terms of all seven members of the West Virginia
hospital finance board shall end on the thirtieth day of June,
one thousand nine hundred ninety-three.
All members of the board shall be citizens of the state.
Each appointed member of the board, before entering upon his or
her duties, shall comply with the requirements of article one,
chapter six of this code and give bond in the sum of twenty-five
thousand dollars in the manner provided in article two, chapter
six of this code. The governor may remove any board member for
cause as provided in article six of said chapter. The director
of the division of health and the state treasurer may each
appoint a deputy to serve as a member of the board in their
respective absences. The deputy shall be a person in the office
of the director of the division of health or the state treasurer,
as the case may be, and shall serve at his or her pleasure.
Four members of the board constitute a quorum and the
affirmative vote of four members is necessary for any action
taken by vote of the board. No vacancy in the membership of the
board impairs the rights of a quorum by such vote to exercise all
the rights and perform all the duties of the board and theauthority.
Annually, the board shall elect one of its appointed members
as chairman and another as vice chairman and shall appoint a
secretary-treasurer, who need not be a member of the board. The
person appointed as secretary-treasurer, including a board member
if he or she is so appointed, shall give bond in the sum of fifty
thousand dollars in the manner provided in article two, chapter
six of this code.
Members of the board shall not receive compensation for
services but are entitled to the necessary expenses, including
traveling expenses, incurred in the discharge of their duties.
Any payments for compensation and expenses shall be paid from the
funds of the authority, after appropriations and authorization by
the Legislature, and no liability or obligation shall be incurred
by the authority beyond the extent to which moneys are available
from funds of the authority.
There shall also be a director of the authority appointed by
the board.