Senate Bill No. 1005
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
____________
[Introduced April 23, 2001]
A BILL to amend chapter sixteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article one-b; to amend
article two-d of said chapter by adding thereto a new section,
designated section four-b; to amend and reenact sections three
and seven, article twenty-nine-a of said chapter; and to amend
and reenact section nine-a, article twenty-two, chapter
twenty-nine of said code, all relating generally to use of
lottery proceeds; providing for the sale of revenue bonds by
the hospital finance authority to fund one or more skilled
nursing facilities that are constructed, equipped, staffed and
operated by the director of the division of veterans' affairs
to house and serve veterans of the United States armed forces
who are citizens of the state; exempting the facilities from
the certificate of need provisions; and redefining terms.
Be it enacted by the Legislature of West Virginia:
That chapter sixteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by adding
thereto a new article, designated article one-b; that article two-d
of said chapter be amended by adding thereto a new section,
designated section four-b; that sections three and seven, article
twenty-nine-a of said chapter be amended and reenacted; and that
section nine-a, article twenty-two, chapter twenty-nine of said
code be amended and reenacted, all to read as follows:
CHAPTER 16. PUBLIC HEALTH.
ARTICLE 1B. SKILLED NURSING FACILITIES FOR VETERANS OF THE UNITED
STATES ARMED FORCES.
§16-1B-1. Legislative findings.
The Legislature finds that the health and welfare of
the veterans of the armed forces who are citizens of our state will
be best served by the establishment of one or more skilled nursing
facilities exclusively for these veterans. Furthermore, the
Legislature finds that nearly two hundred thousand veterans in this
state have distinguished themselves with the highest level of
participation per capita of any state in the wars fought by this
nation. Further, an aging veterans' population which suffers from
wartime disabilities and illnesses, are, or will be, in need of
skilled nursing care.
§16-1B-2. Construction, staffing and operation of one or more
skilled nursing facilities for veterans of the armed
forces of the United States.
The director of veterans affairs shall establish, construct,
equip and operate one or more skilled nursing facilities to serve
the needs of citizens of this state who are veterans of the armed
forces of the United States. For each nursing facility
established, the director shall appoint a facility administrator
and other employees as are necessary to maintain the facility and
deliver quality care to residents of the facility.
§16-1B-3. Issuance of bonds by the hospital finance authority;
payment of bonds from net profits of the veterans
lottery instant scratch-off game.
The director shall request that revenue bonds, not exceeding
the principal amount of ten million dollars, be issued by the West
Virginia hospital finance authority under provisions of section
seven, article twenty-nine-a of this chapter. Net profit from the
veterans lottery instant scratch-off game as authorized by section
nine-a, article twenty-two, chapter twenty-nine of this code, and
other revenues that the Legislature may from time to time
appropriate, shall pay the principal and interest obligations of
the bonds.
§16-1B-4. Eligibility for service; legislative rule.
In order to qualify for service and residency in a skilled
nursing facility established under this article, an applicant must
have continuously been a citizen of the state of West Virginia for
twelve consecutive months and must have performed active duty in an
active component of the armed forces or performed active service in
a reserve component of the armed forces for at least twelve
consecutive months. The director shall propose a legislative rule
further defining and limiting eligibility for services and
residency under this article.
ARTICLE 2D. CERTIFICATE OF NEED.
§16-2D-4b. Certificate of need; exemption for veterans skilled
nursing facility construction, operation and
maintenance.
Notwithstanding any provision of this article and
any rule issued by the state agency, a certificate of need is not
required for the construction, renovation, maintenance or operation
of one or more state veterans skilled nursing facilities
established pursuant to the provisions of article one-b of this
chapter.
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;
(3) "Bond" means a revenue bond issued by the authority to
effect the purposes of this article;
(4) "Construction" means and includes
new construction,
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
chapter sixteen of this code or those facilities certified under
the 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 ancillary to, 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 of
acquisition 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 any hospital facilities, or
other money or property which is received and may be expended for
or pledged as revenues pursuant to this article;
(12) "Veterans skilled nursing facility" means a skilled
nursing care facility constructed and operated to serve the needs
of veterans of the armed forces of the United States who are citizens of this state.
§16-29A-7. Bonds and notes.
(a) The authority periodically may issue its negotiable bonds
and notes in a principal amount which, in the opinion of the
authority, shall be necessary to provide sufficient funds for the
making of hospital loans, including temporary loans during the
construction of hospital facilities, for the payment of interest on
bonds and notes of the authority during construction of hospital
facilities for which the hospital loan was made and for a
reasonable time thereafter and for the establishment of reserves to
secure those bonds and notes.
(b) The authority periodically may issue renewal notes, may
issue bonds to pay notes and, if it considers refunding expedient,
to refund or to refund in advance bonds or notes issued by the
authority by the issuance of new bonds, pursuant to the
requirements of section thirteen of this article.
(c) The authority may, upon concurrent resolution passed by
the Legislature, authorize the issuance of negotiable bonds and
notes in a principal amount which are necessary to provide
sufficient funds for the construction, reconstruction, renovation
and maintenance of one or more skilled nursing facilities that will
only serve the skilled nursing needs of West Virginia veterans who have performed active duty in an active component of the armed
forces or performed active service in a reserve component of the
armed forces. These bonds issued by the authority may not exceed
ten million dollars. The revenues pledged for the repayment of
principal and interest of these bonds shall include the net profit
of the veterans instant lottery scratch-off game authorized by
section nine-a, article twenty-two, chapter twenty-nine of this
code.
(c) (d) Except as may otherwise be expressly provided by the
authority, every issue of its notes or bonds shall be special
obligations of the authority, payable solely from the property,
revenues or other sources of or available to the authority pledges
therefor.
(d) (e) The bonds and the notes shall be authorized by
resolution of the authority, shall bear
such the date and shall
mature at
such time or times, in the case of any such note or any
renewals thereof, not exceeding seven years from the date of issue
of
such the original note, and in the case of any
such bond not
exceeding fifty years from the date of issue, as
such the
resolution may provide. The bonds and notes shall bear interest at
such rate or rates, be in
such a denominations, be in
such a form,
either coupon or registered, carry
such registration privileges, be payable in
such the medium of payment and at
such place or places
and be subject to
such the terms of redemption as the authority may
authorize. The bonds and notes of the authority may be sold by the
authority, at public or private sale, at or not less than the price
the authority determines. The bonds and notes
shall be are
executed by the chairman and vice chairman of the board, both of
whom may use facsimile signatures. The official seal of the
authority or a facsimile thereof shall be affixed to or printed on
each bond and note and attested, manually or by facsimile
signature, by the secretary-treasurer of the board, and any coupons
attached to any bond or note shall bear the signature or facsimile
signature of the chairman of the board. In case any officer whose
signature, or a facsimile of whose signature, appears on any bonds,
notes or coupons ceases to be
such an officer before delivery of
such the bonds or notes, such signature or facsimile is
nevertheless sufficient for all purposes the same as if he
or she
had remained in office until
such the delivery; and, in case the
seal of the authority has been changed after a facsimile has been
imprinted on
such the bonds or notes,
such the facsimile seal will
continue to be sufficient for all purposes.
(e) (f) A resolution authorizing bonds or notes or an issue of
bonds or notes under this article may contain provisions, which
shall be are a part of the contract with the holders of the bonds
or notes, as to any or all of the following:
(1) Pledging and creating a lien on all or any part of the
fees and charges made or received or to be received by the
authority, all or any part of the moneys received in payment of
hospital loans and interest on hospital loans and all or any part
of other moneys received or to be received, to secure the payment
of the bonds or notes or of any issue of bonds or notes, subject to
those agreements with bondholders or noteholders which then exist;
(2) Pledging and creating a lien on all or any part of the
assets of the authority, including notes, deeds of trust and
obligations securing the assets, to secure the payment of the bonds
or notes or of any issue of bonds or notes, subject to those
agreements with bondholders or note holders which then exist;
(3) Pledging and creating a lien on any loan, grant or
contribution to be received from the federal, state or local
government or other source;
(4) The use and disposition of the income from hospital loans
owned by the authority and payment of the principal of and interest
on hospital loans owned by the authority;
(5) The setting aside of reserves or sinking funds and the
regulation and disposition thereof;
(6) Limitations on the purpose to which the proceeds of sale
of bonds or notes may be applied and pledging the proceeds to
secure the payment of the bonds or notes or of any issue of the
bonds or notes;
(7) Limitations on the issuance of additional bonds or notes
and the terms upon which additional bonds or notes may be issued
and secured;
(8) The procedure by which the terms of a contract with the
bondholders or noteholders may be amended or abrogated, the amount
of bonds or notes the holders of which must consent thereto and the
manner in which the consent may be given; and
(9) Vesting in a trustee or trustees the property, rights,
powers, remedies and duties which the authority considers necessary
or convenient.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICES.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-9a. Veterans instant lottery scratch-off game.
(a) Beginning the first day of September, two thousand, the
commission shall establish an instant lottery scratch-off game
designated as the veterans benefit game, which
shall be is offered
by the lottery.
The lottery shall offer the veterans benefit game
until the amount of money in the veterans lottery fund created
under this section reaches six thirty million dollars.
(b) Notwithstanding the provisions of section eighteen of this
article, and subject to the provisions of subsection (d) of this
section, all net profits received from the sale of veterans benefit
game lottery tickets, materials and games
shall be are deposited
with the state treasurer into the veterans lottery fund created
under this section, and the Legislature may make appropriations
from this fund
for payment of principal and interest for revenue
bonds issued under provisions of section seven, article
twenty-nine-a, chapter sixteen of this code: Provided, That once
the payment of the principal and interest is paid in full for the
construction of the initial veterans skilled nursing facility, the
Legislature may appropriate from the fund created under this
section moneys for the construction,
equipping and operation of
additional skilled nursing
beds facilities for veterans of the
armed forces of the United States military:
Provided, however,
After the payment of the above-mentioned items, the Legislature may
appropriate any excess funds to the general revenue fund.
(c) Before appropriation of any of the net profits derived
from the veterans benefit game for the uses set forth in this
section, the Legislature shall first determine that the state has
met all debt obligations for which lottery profits have been
pledged for that fiscal year.
(d) There is hereby created in the state treasury a special
revenue fund designated and known as the veterans lottery fund
which shall consist of all revenues derived from the veterans
benefit game, any appropriations to the fund by the Legislature,
and all interest earned from investment of the fund and any gifts,
grants or contributions received by the
fund. Revenues received by
the veterans lottery fund shall be deposited in the West Virginia
consolidated investment pool with the West Virginia investment
management board, with the interest income a proper credit to all
such these funds.
(e) The commission shall change the design or theme of the
veterans benefit game regularly so that the game remains
competitive with the other instant lottery scratch-off games
offered by the commission. The tickets for the instant lottery
game created in this section shall clearly state that the profits
derived from the game are being used to benefit veterans in this
state.
(f) The health care authority created under section five,
article twenty-nine-b, chapter sixteen of this code, shall conduct
a survey to determine the need for skilled nursing beds for
veterans in this state. The survey shall determine the number of
veterans in existing nursing homes in this state; the number of nursing homes collecting reimbursement from the veterans
administration; where the veterans are located within this state;
the number of skilled nursing beds that currently exist in the
areas in which the veterans are located; and any other information
necessary to determine the need for skilled nursing beds for
veterans in this state. The authority shall also determine the
manner in which federal reimbursement may be maximized for these
skilled nursing beds: Provided, That the authority, when
determining the best method of maximizing reimbursement, shall
consider the requirement that veterans pay a fee for residing in
the nursing homes through a sliding fee scale based upon ability to
pay. The authority shall also determine the benefits of locating
the skilled nursing beds adjacent to existing veterans
administration medical facilities as a means of minimizing the cost
of construction and to avoid duplication of services. The
authority shall report its findings to the joint committee on
government and finance by the first day of November, two thousand.
NOTE: The purpose of this bill is to permit the state to
construct, equip and operate one or more skilled nursing facilities
for veterans of the armed forces of the United States, to issue
bonds to finance the construction and equipping and to pledge net
profit from the veterans lottery instant scratch-off game to pay
the principal and interest payments for the bonds.
§16-1B and §16-2D-4b are new; therefore, strike-throughs and
underscoring have been omitted.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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