H. B. 2597
(By Delegates Yeager, Kelley and
Leggett)
[Introduced February 2, 1999; referred to the
Committee on Agriculture and Natural Resources then Finance.]
A BILL to amend and reenact section eleven-a, article six,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to directing the
state building commission to transfer unexpended funds from
certified state park bond projects which were completed
under budget to certified state park bond projects which are
experiencing cost overruns; commission to consult with
division of natural resources to prioritize those projects
to receive funds; and public hearing requirements do not
apply to reallocation of funds among previously certified
bond projects.
Be it enacted by the Legislature of West Virginia:
That section eleven-a, article six, chapter five of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 6. STATE BUILDING COMMISSION.
§5-6-11a. Special power of commission to transfer or expend bond
proceeds for capital improvements at institutions of higher education, state parks and the capitol complex and to construct and lease a center for arts
and sciences of West Virginia; limitations; state building commission authorized to issue revenue bonds; fund created; use of funds to pay for
development of education, arts, sciences and tourism projects;
reallocation of funds among previously certified state park bond
projects.
(a) The Legislature finds and declares that in order to
attract new business and industry to this state, to retain
existing business and industry providing the citizens of this
state with economic security and to advance the business
prosperity and economic welfare of this state it is necessary to
promote adequate higher education, arts, sciences and tourism
facilities, including infrastructure, for: (1) State-of-the-art educational opportunities for all citizens of this state; (2)
tourism enhancements at state parks, the capitol complex or other
tourism sites throughout the state; (3) hands-on arts and
sciences training for the youth of West Virginia; and (4)
programs using the performing arts as an educational tool.
Therefore, in order to promote education, arts, sciences and
tourism, the Legislature finds that public financial support
should be provided for constructing, equipping, improving and
maintaining capital improvement projects which promote education,
arts, sciences and tourism in this state.
(b) The state building commission shall, by resolution, in
accordance with the provisions of this article, issue revenue
bonds of the commission from time to time, to pay for a portion
of the cost of constructing, equipping, improving or maintaining
capital improvement projects under this section or to refund the
bonds, at the discretion of the authority. The principal amount
of the bonds issued under this section shall not exceed, in the
aggregate, one hundred million dollars. Any revenue bonds issued
on or after the first day of January, one thousand nine hundred
ninety-six, which are secured by lottery proceeds shall mature at a time or times not exceeding twenty-five years from their
respective dates. The principal of, and the interest and
redemption premium, if any, on the bonds shall be payable solely
from the special fund provided in this section for the payment.
(c) There is hereby created in the state treasury a special
revenue fund named the "education, arts, sciences and tourism
debt service fund" into which shall be deposited on and after the
first day of July, one thousand nine hundred ninety-six, the
amounts specified in section eighteen, article twenty-two,
chapter twenty-nine of this code. All amounts deposited in the
fund shall be pledged to the repayment of the principal, interest
and redemption premium, if any, on any revenue bonds or refunding
revenue bonds authorized by this section. The commission may
further provide in the resolution and in the trust agreement for
priorities on the revenues paid into the education, arts,
sciences and tourism debt service fund as may be necessary for
the protection of the prior rights of the holders of bonds issued
at different times under the provisions of this section. The
bonds issued pursuant to this section shall be separate from all
other bonds which may be or have been issued from time to time under the provisions of this article. The education, arts,
sciences and tourism debt service fund shall be pledged solely
for the repayment of bonds issued pursuant to this section. On
or prior to the first day of May of each year, commencing the
first day of May, one thousand nine hundred ninety-six, the
commission shall certify to the state lottery director the
principal and interest and coverage ratio requirements for the
following fiscal year on any revenue bonds or refunding revenue
bonds issued pursuant to this section, and for which moneys
deposited in the education, arts, sciences and tourism debt
service fund have been pledged, or will be pledged, for repayment
pursuant to this section.
After the commission has issued bonds authorized by this
section, and after the requirements of all funds have been
satisfied, including coverage and reserve funds established in
connection with the bonds issued pursuant to this section, any
balance remaining in the education, arts, sciences and tourism
debt service fund may be used for the redemption of any of the
outstanding bonds issued under this section which, by their
terms, are then redeemable or for the purchase of the outstanding bonds at the market price, but not to exceed the price, if any,
at which redeemable, and all bonds redeemed or purchased shall be
immediately canceled and shall not again be issued.
(d) The commission shall expend twenty-five million dollars
of the bond proceeds for certified capital improvement projects
at state institutions of higher education. For the purposes of
certifying the projects which will receive funds from the bond
proceeds, a committee shall be established and comprised of the
governor, or his or her designee, the secretary of the department
of administration, the secretary of the department of education
and the arts, the chancellor of the university of West Virginia
board of trustees and the chancellor of the board of directors of
the state college system. The committee shall meet as often as
necessary and take recommendations from any source whatever
regarding the capital improvement projects at state institutions
of higher education. The committee shall meet within forty-five
days of the effective date of this section. Prior to making its
recommendations, the committee shall conduct at least two public
hearings, one of which must be held outside of Kanawha County.
Notice of the time, place, date and purpose of the hearing shall be published in at least one newspaper in each of the three
congressional districts at least fourteen days prior to the date
of the public hearing. On or before the fifteenth day of
September, one thousand nine hundred ninety-six, the committee
shall certify to the commission a list of those capital
improvement projects at state institutions of higher education
which will receive funds from the proceeds of bonds issued
pursuant to this section. Once certified, the list may not
thereafter be altered or amended other than by legislative
enactment.
(e) The commission shall expend up to twenty-six million
dollars from the proceeds of the bonds authorized by this section
to pay a portion of the costs of projects certified under this
subsection for development, maintenance or promotion of arts and
sciences or constructing and equipping a center for arts and
sciences of West Virginia located on a site acquired for that
purpose. Any proceeds expended to pay a portion of project costs
to construct and equip a center for arts and sciences of West
Virginia shall not exceed forty percent of the total cost of the
project and permanent endowments for operation and maintenance, and bond proceeds shall not be expended until sixty percent of
the total cost has been committed from sources other than bond
proceeds. For the purposes of certifying the projects which will
receive funds from the bond proceeds under this subsection, a
committee shall be established and comprised of the governor, or
his or her designee, the secretary of the department of
administration, the director of the division of natural
resources, the director of the West Virginia development office
and a representative of the capitol building commission, other
than the secretary of the department of administration, who shall
be selected by the capitol building commission. The capitol
building commission shall select its representative within thirty
days of the effective date of this section. The committee shall
meet as often as necessary and take recommendations from any
source whatever regarding which projects should be certified.
The committee shall meet within forty-five days of the effective
date of this section. Prior to making its determination, the
committee shall conduct one public hearing on the projects to be
certified under this subsection. Notice of the time, place, date
and purpose of the hearing shall be published in at least one newspaper in each of the three congressional districts at least
fourteen days prior to the date of the public hearing. The
committee shall make its determination as to whether bond
proceeds will be expended for the purposes set forth in this
subsection and the amount to be expended for each project, on or
before the fifteenth day of June, one thousand nine hundred
ninety-six. Thereafter, the decision may not be altered or
amended other than by legislative enactment. The commission is
authorized to acquire by purchase or lease real property to be
used as the site for a center for arts and sciences of West
Virginia; and notwithstanding the provisions of section seven of
this article, enter into a long-term lease agreement with a
nonprofit corporation organized under the laws of this state for
operation and maintenance of the center. The nonprofit
corporation shall, as consideration for any long-term lease
agreement, complete the construction and equipping of the center
and demonstrate to the satisfaction of the commission its
financial ability to operate and maintain the center during the
term of the lease agreement. The nonprofit corporation shall
have at least nine members on its board of directors which are appointed by the governor with the advice and consent of the
Senate. Of the nine appointed members, three shall be selected
from each congressional district:
Provided, That none of the
appointed members shall be a resident of Kanawha County. The
members appointed by the governor with the advice and consent of
the Senate shall serve on the board for three-year staggered
terms. Of the members first appointed by the governor, one from
each congressional district will serve a three-year term, one
from each congressional district will serve a two-year term and
one from each congressional district shall serve a one-year term.
(f) The commission shall expend the balance of the bond
proceeds for certified projects at state parks, the capitol
complex or other tourism sites. The committee established in
subsection (e) of this section shall certify to the commission on
or before the fifteenth day of September, one thousand nine
hundred ninety-six, a list of those capital improvement projects
at state parks, the capitol complex or other tourism sites which
will receive funds from the proceeds of bonds issued pursuant to
this section. The committee shall meet as often as necessary and
take recommendations from any source whatever regarding the capital improvement projects at state parks, the capitol complex
or other tourism sites in this state. The committee shall meet
within forty-five days of the effective date of this section.
Prior to making its recommendations, the committee shall conduct
at least two public hearings on the projects to be certified
under this subsection, one of which must be held outside of
Kanawha County. Notice of the time, place, date and purpose of
the hearing shall be published in at least one newspaper in each
of the three congressional districts at least fourteen days prior
to the date of the public hearing. Once certified, the list may
not thereafter be altered or amended other than by legislative
enactment.
(g) With respect to state park bond projects certified
pursuant to subsection (f) of this section, the commission shall
identify all state park bond projects which were completed under
budget, and shall transfer all unexpended funds from those
projects to state park bond projects which are experiencing cost
overruns and are in need of additional funding. The commission
shall consult with the division of natural resources to
prioritize those projects experiencing cost overruns to best allocate the available funds. The public hearing requirements
set forth in subsection (f) of this section do not apply to the
reallocation of funds among previously certified state park bond
projects.
NOTE: The purpose of this bill is to direct the State
Building Commission to transfer unexpended funds from state park
bond projects which were completed under budget to state park
bond projects which are experiencing cost overruns.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.