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 Education; reported March 28,
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
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 to twenty-four, inclusive, of this article, of
any one or more of such 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 cost, the principal and interest of which
bonds shall be payable solely from the special fund
or funds herein
provided for such 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 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 bonds
shall have and are hereby
declared to have all the qualities of negotiable instruments under
the Uniform Commercial Code. Such 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 price and under such terms and
conditions as they may fix prior to the issuance of such bonds.
They shall determine the form of such 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,
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 bonds, such signatures shall
nevertheless be valid and sufficient for all purposes the same as
if they had remained in office until such delivery. The governing
boards shall fix the denominations of such 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 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 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 bonds in the name of the owner as to principal alone
and or as
to both principal and interest under such terms and conditions as
the governing boards may determine, and shall sell such 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 bonds shall be used solely for the
payment of the cost of such dormitories,
homes or refectories, and
housing facilities, food service facilities, and motor vehicle
parking facilities and costs of issuance of such 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 such 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 bonds, by error or otherwise, shall be less than the cost of
such 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 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 such 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 bonds. Such fund may be used for the purchase of any of the
outstanding bonds payable from such fund at the market price, but
not exceeding the price, if any, at which such 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 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 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 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 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 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 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 dormitories,
homes or refectories
housing facilities, food service facilities, or motor vehicle
parking facilities or the separate gross revenues derivable from
such dormitories, such housing facilities, such food service
facilities, or such 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 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
bonds and the interest thereon, and to the redemption or repurchase
of such bonds, such special fund to be a fund for all such bonds
without distinction or priority of one over another. The moneys in
such 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 moneys being transmitted to the municipal bond commission and
by it placed in a special fund, the rents, fees and charges from
such 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 such bonds may be transmitted and
paid to a trustee designated and named by the United States of
America or such 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 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 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
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 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 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 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 to 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 to 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
rules as it may prescribe, determine
s that there is an imperative
public need for the construction, building or erection of such
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 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 to 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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