COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 517
(By Senators Craigo, Oliverio, Helmick, Ross, Sharpe, Plymale and
Unger)
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[Originating in the Committee on Finance;
reported April 3, 2001.]
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A BILL to amend and reenact sections thirteen, fourteen, sixteen,
seventeen, eighteen, nineteen, twenty, twenty-one, twenty-two
and twenty-three, article twenty-three, chapter eighteen of
the code of West Virginia, one thousand nine hundred thirty-
one, as amended, all relating to
higher education revenue
bonds generally; uses for bond proceeds, including motor
vehicle parking facilities; removing certain requirement on
bond trustee; authorizing gross revenues of facilities to be
pledged; and authorizing certain fees to be paid from bond
proceeds.
Be it enacted by the Legislature of West Virginia:
That sections thirteen, fourteen, sixteen, seventeen,
eighteen, nineteen, twenty, twenty-one, twenty-two and twenty-
three, article twenty-three, chapter eighteen of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:
ARTICLE 23. ADDITIONAL POWERS, DUTIES AND RESPONSIBILITIES OF
GOVERNING BOARDS OF STATE INSTITUTIONS OF HIGHER EDUCATION.
§18-23-13. Construction and operation of dormitories, housing
facilities, food service facilities and motor vehicle parking
facilities for teachers and students.
The governing boards are hereby authorized to provide,
construct, erect, improve, equip, maintain and operate dormitories,
homes or refectories housing facilities, food service facilities
and motor vehicle parking facilities on land owned by the state for
students or teachers at the various state
educational institutions
of higher education under their control
but and the cost of
construction, erection, improvement or equipment
shall may be
payable solely by means of or with the proceeds of the revenue
bonds hereinafter authorized. The governing boards
shall have power
and authority to employ engineering, architectural and construction
experts and
such other employees as may be necessary in their
judgment and fix their compensation, all of whom shall do
such the
work as the governing boards
shall direct, all of which shall be
included as part of the cost of construction and equipment thereof.
§18-23-14. Construction and operation of gymnasiums, etc.
The governing boards, within their discretion, are hereby
authorized to provide, construct, erect, improve, equip, maintain
and operate gymnasiums or stadia for athletic games, contests or
exhibitions or physical training, dormitories,
homes, refectories
housing facilities, food service facilities and motor vehicle parking facilities, refectories, swimming pools or such other
structures or buildings, for students, teachers, officers and
employees at the various state institutions of higher education
under their control and management subject to the provisions and
limitations of sections thirteen, fifteen, sixteen, seventeen,
eighteen, nineteen, twenty, twenty-one, twenty-two, twenty-three
and twenty-four of this article.
§18-23-16. Cost of dormitories, housing facilities, food service
facilities and motor vehicle parking facilities to be paid
from proceeds of revenue bonds.
The governing boards may pay the cost, as defined in sections
thirteen through twenty-four, inclusive, of this article, of any
one or more of
such the dormitories,
homes or refectories housing
facilities, food service facilities and motor vehicle parking
facilities out of the proceeds of revenue bonds of the state. The
governing boards are authorized to issue revenue bonds of the state
by a resolution of the board which shall recite an estimate by the
board of
such the cost, the principal and interest of which bonds
shall be payable solely from the special fund
or funds herein
provided for
such the payment. The board, after any
such issue of
bonds or simultaneously therewith, may issue further issues of
bonds to pay the cost of any other one or more of
such the
dormitories,
homes or refectories housing facilities, food service
facilities and motor vehicle parking facilities in the manner and
subject to all of the provisions herein contained as to the bonds
first mentioned in this section. All
such these bonds shall have and are hereby declared to have all the qualities of negotiable
instruments under the Uniform Commercial Code.
Such These bonds
shall bear interest
at such rates, payable
semiannually at such
times, and shall mature in not more than thirty years from their
date or dates and may be made redeemable at the option of the
state, to be exercised by the governing boards, at
such a price and
under
such terms and conditions as they may fix prior to the
issuance of
such the bonds. They shall determine the form of
such
the bonds,
including coupons to be attached thereto, to evidence
the right of interest payments which bonds shall be signed by the
governor and the president of the appropriate governing board,
under the great seal of the state and attested by the secretary of
state.
, and the coupons attached thereto, shall bear the facsimile
signature of the president of the appropriate board. In case any of
the officers whose signatures appear on the bonds
or coupons shall
cease to be
such officers before the delivery of
such the bonds,
such the signatures shall nevertheless be valid and sufficient for
all purposes the same as if they had remained in office until
such
the delivery. The governing boards shall fix the denominations of
such the bonds, the principal and interest of which shall be
payable at the office of the treasurer of the state of West
Virginia, at the capitol of
said the state or, at the option of the
holder, at some bank or trust company
in within or outside of the
city of New York state, to be named in the bonds,
either in lawful
money
or in gold coin of the United States of America.
, of or
equal to the then current standard of weight and fineness, as may be determined by the governing boards. Such The bonds
and the
interest thereon shall be exempt from taxation by the state of West
Virginia or any county, school district or municipality therein.
The governing boards may provide for the registration of
such the
bonds in the name of the owner as to principal alone
and or as to
both principal and interest under
such the terms and conditions as
the governing boards may determine and shall sell
such the bonds in
such manner as they may determine to be for the best interest of
the state, taking into consideration the financial responsibility
of the purchaser and the terms and conditions of the purchase and
especially the availability of the proceeds of the bonds when
required for payment of the cost of the dormitories,
homes or
refectories housing facilities, food service facilities and motor
vehicle parking facilities.
The proceeds of
such the bonds shall be used solely for the
payment of the cost of
such the dormitories,
homes or refectories,
and housing facilities, food service facilities and motor vehicle
parking facilities and costs of issuance of the bonds, which costs
shall be deemed to include the cost of acquisition or construction
thereof, the cost of all property, rights, easements and franchises
deemed necessary or convenient therefor and for the improvements
determined upon as provided in this article; interest upon bonds
prior to and during construction or acquisition and for a
reasonable period after completion of construction or of
acquisition of the improvements; engineering, architectural and
legal expenses; expense for estimates of cost and of revenues; expenses for plans, specifications and surveys; other expenses
necessary or incidential to determining the feasibility or
practicability of the improvements; and other expenses as may be
necessary or incidental to the financing herein authorized and the
construction or acquisition of the improvements and the placing
thereof in operation. The bonds shall be checked out by the
president of the appropriate governing board and the treasurer
thereof and under such further restrictions, if any, as the board
may provide. The bonds shall be authorized and approved by
resolution of the appropriate governing board. If the proceeds of
such the bonds, by error or otherwise, shall be less than the cost
of
such the dormitories,
homes or refectories housing facilities,
food service facilities and motor vehicle parking facilities,
additional
parity bonds may in like manner be issued to provide the
amount of
such the deficit and, unless otherwise provided in the
trust agreement hereinafter mentioned, shall be deemed to be of the
same issue and shall be entitled to payment from the same fund,
without preference or priority of the bonds first issued for the
same
dormitory or dormitories,
home or homes, or refectory or
refectories housing facilities, food service facilities and motor
vehicle parking facilities. If the proceeds of bonds issued for
any dormitories,
homes or refectories housing facilities, food
service facilities and motor vehicle parking facilities shall
exceed the cost thereof, the surplus shall be paid into the fund
hereinafter provided for payment of the principal and interest of
such the bonds.
Such The fund may be used for the purchase of any of the outstanding bonds payable from
such the fund at the market
price, but not exceeding the price, if any, at which
such the bonds
shall in the same year
shall be redeemable and all bonds redeemed
or purchased shall forthwith be cancelled and shall not again be
issued.
Prior to the preparation of definitive bonds, the governing
boards may under like restrictions issue temporary bonds
with or
without coupons, exchangeable for definitive bonds upon the
issuance of the latter.
Such The revenue bonds may be issued
without any other proceedings or the happening of any other
conditions and things than those proceedings, conditions and things
which are specified and required by this article or by the
constitution of the state.
§18-23-17. Agreements with trustees for bondholders.
The governing boards may enter into an agreement or agreements
with any trust company or with any bank having
the trust powers
of
a trust company, either within or outside of the state, as trustee
for the holders of the bonds issued hereunder, setting forth
therein such duties of the state and of the governing boards in
respect of the acquisition, construction, erection, improvement,
maintenance, operation, repair and insurance of the dormitories,
homes or refectories housing facilities, food service facilities
and motor vehicle parking facilities, the conservation and
application of all moneys, the insurance of moneys on hand or on
deposit and the rights and remedies of the trustee and the holders
of the bonds, as may be agreed on with the original purchasers of
such the bonds, and including therein provisions restricting the
individual right of action of bondholders as is customary in trust
agreements respecting bonds and debentures of corporations,
protecting and enforcing the rights and remedies of the trustee and
the bondholders and providing for approval by the original
purchasers of the bonds, of the appointment of consulting engineers
and of the security given by those who contract to make
improvements and by any bank or trust company in which the proceeds
of bonds or rents, fees or charges shall be deposited and for
approval by the consulting engineers of all contracts for
improvements. All expenses incurred in carrying out
such an
agreement may be treated as a part of the cost of maintenance,
operation and repair of the dormitories,
homes or refectories
housing facilities, food service facilities and motor vehicle
parking facilities affected by the agreement. Any
such agreement
entered into by the governing boards shall be binding in all
respects on
such the governing boards from time to time in
accordance with its terms and all the provisions thereof shall be
enforceable by appropriate proceedings at law or in equity, or
otherwise.
§18-23-18. Operation and control of fiscal affairs of dormitories,
housing facilities, food service facilities and motor vehicle
parking facilities.
The governing boards shall properly maintain, repair, operate,
manage and control the fiscal affairs of
such the dormitories,
homes or refectories housing facilities, food service facilities and motor vehicle parking facilities, fix the rates of rents, fees
or charges and establish rules and regulations for the use and
operation of such dormitories,
homes or refectories,
housing
facilities, food service facilities and motor vehicle parking
facilities for the welfare of the students or teachers and may make
and enter into all contracts or agreements necessary and incidental
to the performance of their duties and the execution of their
powers under this article.
§18-23-19. Payment of principal and interest of construction bonds
from revenues of dormitories, housing facilities, food service
facilities, or motor vehicle parking facilities; redemption of
bonds.
Whenever bonds are issued for the construction, erection or
equipment of dormitories,
homes or refectories housing facilities,
food service facilities, or motor vehicle parking facilities or for
the improvement or equipment of existing dormitories,
homes or
refectories housing facilities, food service facilities, or motor
vehicle parking facilities, or for any or all of
such the purposes,
as joint or several projects, for which a single or several issues
of bonds may be issued within the discretion of the governing
boards, rents, fees and charges shall be fixed, charged and
collected in connection with the use or occupancy of, or service to
be thereby rendered and furnished by, dormitories,
homes or
refectories housing facilities, food service facilities, or motor
vehicle parking facilities of the particular state educational
institution as the governing board thereof shall determine, and shall be so fixed or adjusted, as to provide a fund sufficient to
pay the principal and interest of each
such issue of bonds and to
provide an additional fund to pay the cost of maintaining,
repairing, operating and insuring such dormitories,
homes or
refectories housing facilities, food service facilities, or motor
vehicle parking facilities. Whenever bonds are issued to finance
the construction and erection of dormitories,
homes housing
facilities, food service facilities or
refectories motor vehicle
parking facilities, together with additions or extensions to
an
existing
dormitory, home or refectory dormitories, housing
facilities, food service facilities and motor vehicle parking
facilities for students or teachers at state
educational
institutions
of higher education, either the
combined gross
revenues derivable from all
such the dormitories,
homes or
refectories housing facilities, food service facilities, or motor
vehicle parking facilities or the separate gross revenues derivable
from the dormitories, the housing facilities, the food service
facilities, or the motor vehicle parking facilities of the
particular state
educational institution
of higher education as the
governing board thereof shall determine, may be pledged to provide
a fund sufficient to pay the principal and interest of
such the
issue of bonds and of any other bonds thereafter issued for the
same purpose and to provide an additional fund to pay the cost of
maintaining, repairing, operating and insuring such dormitories,
homes or refectories housing facilities, food service facilities,
or motor vehicle parking facilities. Except as may otherwise be provided in the trust agreement authorized in section seventeen of
this article, the rents, fees and charges from the dormitories,
homes housing facilities, food service facilities or
refectories
motor vehicle parking facilities for which a single issue of bonds
is issued,
except such part thereof as may be necessary to pay such
cost of maintaining, repairing, operating and insuring during any
period in which such cost is not otherwise provided for (during
which period the rents, fees and charges may be reduced
accordingly), in an amount sufficient to pay, when due, the
principal of, redemption premium, if any, and interest on such
bonds shall be transmitted each month to the municipal bond
commission and by it placed in a special fund which is hereby
pledged to and charged with the payment of the principal of
such
the bonds and the interest thereon and to the redemption or
repurchase of
such the bonds,
such the special fund to be a fund
for all
such these bonds without distinction or priority of one
over another. The moneys in
such the special fund, less
any a
reserve for payment of interest, if not used by the municipal bond
commission within a reasonable time for the purchase of bonds for
cancellation at a price not exceeding the market price and not
exceeding the redemption price, shall be applied to the redemption
by lot of any bonds which by their terms are then redeemable, at
the redemption price then applicable:
Provided, That if said
revenue bonds are sold to and purchased by the United States of
America or any federal or public agency or department created under
and by virtue of the laws of the United States of America, then at the option of the United States of America or such federal or
public agency or department in lieu of
such the moneys being
transmitted to the municipal bond commission and by it placed in a
special fund the rents, fees and charges from
such the dormitories,
homes or refectories, except such part thereof as may be necessary
to pay such cost of maintaining, repairing, operating and insuring
as provided aforesaid housing facilities, food service facilities,
or motor vehicle parking facilities, in an amount sufficient to
pay, when due, the principal of, redemption premium, if any, and
interest on the bonds may be transmitted and paid to a trustee
designated and named by the United States of America or
such a
federal or public agency or department in its agreement and
contract with the appropriate governing board, for the payment of
the principal of such bonds and the interest thereon, under such
terms and conditions as may be agreed upon.
§18-23-20. When dormitories, housing facilities, food service
facilities, or motor vehicle parking facilities become
property of state.
When the particular bonds for any dormitory or dormitories,
home or homes, refectory or refectories housing facilities, food
service facilities, or motor vehicle parking facilities and the
interest on
such the bonds shall have been paid or a sufficient
amount has been provided for their payment and shall continue to be
held for that purpose, the
said dormitories,
homes or refectories
housing facilities, food service facilities, or motor vehicle
parking facilities shall thereafter be exclusively the property of the state of West Virginia and thereafter the rents, fees and
charges collected for the use or occupancy of, or service rendered
and furnished by,
such the dormitories,
homes or refectories
housing facilities, food service facilities, or motor vehicle
parking facilities shall be paid into the state board of
investments as provided by the provisions of section two, article
two, chapter twelve of this code, as amended, and used and expended
for the benefit of the institution where collected:
Provided, That
nothing in this section precludes any governing board from pledging
such the rents, fees and charges to pay the principal and interest
on any bonds thereafter issued to construct new or to improve
existing dormitories,
homes or refectories housing facilities, food
service facilities, or motor vehicle parking facilities pursuant to
section nineteen of this article.
Such The rents, fees and charges
shall be paid as may be provided in a trust agreement authorized
pursuant to section seventeen of this article and in the absence of
such trust agreement as provided in section nineteen of this
article.
§18-23-21. State debt not to be incurred for dormitories, housing
facilities, food service facilities, or motor vehicle parking
facilities; federal and private assistance; provisions
separable.
Nothing in these sections dealing with dormitories,
homes or
refectories housing facilities, food service facilities, or motor
vehicle parking facilities shall may be so construed or interpreted
as to authorize or permit the incurring of state debt of any kind or nature as contemplated by the constitution of this state in
relation to the state debt. The dormitories,
homes or refectories
housing facilities, food service facilities, or motor vehicle
parking facilities herein are of the character described as
self-liquidating projects under the laws of
the United States this
state.
Any governing board authorized to issue bonds under the
provisions of this article is authorized and empowered to accept
loans or grants or temporary advances for the purpose of paying
part or all of the cost of construction of the dormitories,
homes
or refectories housing facilities, food service facilities, or
motor vehicle parking facilities and the other purposes herein
authorized, from the United States of America or
such a federal or
public agency or department of the United States or any private
agency, corporation or individual, which temporary advances may be
repaid out of the proceeds of the bonds authorized to be issued
under the provisions of this article and to enter into the
necessary contracts and agreements to carry out the purposes hereof
with the United States of America or
such a federal or public
agency or department of the United States or with any private
agency, corporation or individual. The provisions and parts of this
section are separable and are not matters of mutual essential
inducement and it is the intention to confer the whole or any part
of the powers herein provided for and if any of the sections or
provisions, or parts thereof, are for any reason illegal or
invalid, it is the intention that the remaining sections and provisions or parts thereof shall remain in full force and effect.
§18-23-22. Sections regarded as supplementary.
Sections thirteen through twenty-four, inclusive, of this
article
shall be deemed to provide an additional and alternative
method for the doing of the things authorized hereby and shall be
regarded as supplementary and additional to powers conferred by
other laws:
Provided, however, That when any revenue bonds are
issued hereunder for the purposes provided by sections thirteen
through twenty-four, inclusive, of this article, for the benefit of
any particular state
educational institution
of higher education,
no dormitories,
homes or refectories housing facilities, food
service facilities, or motor vehicle parking facilities shall
thereafter be constructed, built or erected at
such the state
educational institution
of higher education until the appropriate
governing board
shall, by
investigating and hearing investigation
had thereon, under
such the rules as it may prescribe, determine
s
that there is an imperative public need for the construction,
building or erection of
such the dormitories,
homes or refectories
housing facilities, food service facilities or motor vehicle
parking facilities and that their construction, building or
erection and subsequent maintenance or operation will not
materially injure the revenues of and from any dormitories,
homes
or refectories housing facilities, food service facilities, or
motor vehicle parking facilities constructed, built, erected,
maintained or operated at
such the state
educational institution
of
higher education under the provisions of sections thirteen to twenty-four, inclusive, of this article.
§18-23-23. Approval of dormitories, housing facilities, food
service facilities or motor vehicle parking facilities.
It
shall is not
be necessary to secure from any officer or
board not named in sections thirteen through twenty-four,
inclusive, of this article any approval or consent or any
certificate or finding or to hold any election or to take any
proceedings whatever, either for the acquisition, construction or
erection of such dormitories,
homes or refectories housing
facilities, food service facilities or motor vehicle parking
facilities, or the improvement thereof, or their maintenance,
operation, repair or insurance, or for the issuance of bonds
hereunder, except such as are prescribed in the sections herein
named or are required by the constitution of the state.
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