H. B. 4469
(By Delegates White (By Request),
M. Poling (By Request) and Kominar)
[Introduced February 8, 2008; referred to the
Committee on Education then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §18B-1-9, relating
generally to allowing governing boards of state colleges and
universities to transfer real property or any interest therein
to a nonstock, nonprofit real estate foundation that is exempt
from federal income tax, when governing board determines that
property was acquired by gift, grant devise or bequest to or
for the college or university, or purchased by or for the
college or university with private funds.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §18B-1-9, to read as
follows:
ARTICLE 1. GOVERNANCE.
§18B-1-9. Conveyance of property to real estate foundations; additional powers of governing boards.
(a) Conveyance of property to and by foundation. -- The
governing board of any institution of higher education may
authorize the conveyance of any interest in property or
improvements thereon held by the institution or any constituent
unit thereof, or by the state or any agency of the state on behalf
of the institution, to a real estate foundation when that
institution's governing board finds that the property was acquired
with private funds, or by gift, bequest or devise to or for the use
of the institution, and not with funds appropriated to the
institution by the Legislature. Any approved conveyance shall be
exempt from any other section of this code concerning conveyance,
transfer or sale of property notwithstanding any provision in such
section or sections to the contrary. If the foundation conveys any
interest in the property or any improvements thereon, the
conveyance shall likewise be exempt from compliance with any
statute concerning disposition of state property. Any income or
proceeds from the conveyance of any interest in the property shall
be deemed to be private funds of the foundation and may be used by
the foundation for any foundation purpose. Upon termination of the
foundation all of its net assets shall revert to the institution
that established the foundation.
(b) Purposes of foundation. -- The purposes of the real estate
foundation shall include, but not be limited to, holding title to,
accepting, managing and disposing: (i) Real property and any
improvements thereon or interest therein acquired by the
institution by gift, grant, bequest or devise, or purchased by the
institution using private funds; and (ii) any income derived from
the property or proceeds from the sale or transfer of the property.
(c) Creation of foundation; tax exempt status. -- The real
estate foundation shall be established as a nonstock, nonprofit
corporation established under the general corporation laws of this
state. The foundation shall be operated solely in connection with
and exclusively for the benefit of the institution and its
affiliated organizations. No part of the foundation's net earnings
may be used in any manner that is inconsistent with the purposes
set forth herein and the foundation's exemption from federal income
tax under 26 U.S.C. §501(c)(3).
(d) Property defined. -- For purposes of this section,
property means an interest in land including, but not limited to,
any interest in natural resources on or under the surface of the
land, and any improvements thereon.
NOTE: The purpose of this bill is allow state colleges and
universities to better manage real property gifted to them, or
acquired by them with private funds by allowing title to such
properties to be transferred to a real estate foundation
established as a nonstock, nonprofit corporation. The foundation
must be exempt from federal income tax. The governing board must
affirmatively approve each transfer but only upon a finding that
the property was in fact gifted to the institution or was acquired
with private moneys.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.