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Introduced Version House Bill 3019 History

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Key: Green = existing Code. Red = new code to be enacted


H. B. 3019


(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Introduced March 27, 2001; referred to the
Committee on Veterans' Affairs then Finance.]



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 to 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 secretary of the department of health and human resources to house and serve veterans of the United States armed forces who are citizens of the state and to exempt the facilities from the certificate of need provisions.

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; and 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. Construction, staffing and operation of one or more skilled nursing facilities for veterans of the armed forces of the United States.

The secretary of the department of health and human resources 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, the secretary 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-2. Issuance of bonds by the hospital finance authority; payment of bonds from net profits of the veterans lottery instant scratch-off game.

The secretary shall request that revenue bonds, not exceeding the principal amount of fifteen million dollars, be issued by the West Virginia hospital finance authority under provisions of section seven, article twenty-nine-a of this chapter. The term of the bonds issued may not exceed thirty-four years. 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-3. 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. In order to qualify for service and residency in a skilled nursing facility established under this article, an applicant must have been on active duty in a branch of the United States armed forces for at least twelve consecutive months. The secretary 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. Construction and operation of one or more skilled nursing facilities for veterans of the armed forces of the United States.

(a) Legislative findings and purpose. The Legislature hereby finds and declares that a need exists for one or more skilled nursing facilities to serve the needs of veterans of the armed forces of the United States due to a shortage of existing facilities with adequate bed capacity and lack of willingness to provide such services; that veterans in need of skilled nursing services have sometimes been retained in an inappropriate level of care facility; that these practices have resulted in improper utilization of health care facilities and resources; that nursing homes are unable under subsection (h), section five of this article, to add intermediate or dually certified beds to skilled nursing beds at the present time in numbers in excess of ten percent or not more than ten beds, whichever is less; and that remedial action by the Legislature is necessary to effectuate relief of these problems to promote the health and welfare of veterans of the armed forces of the United States who are citizens of the state by construction and operation of one or more skilled nursing facilities.
(b) Notwithstanding the provisions of subsection (h), section five of this article, and, further, notwithstanding the provisions of subdivision (4),subsection (b), section three of this article, the state agency shall adopt rules pursuant to section eight of this article, to exempt from review the construction and operation of one or more skilled nursing facilities by the state department of health and human resources.
(c) Nothing in this section negatively affects the rights of inspection and certification which are elsewhere required by federal law or regulations or by this code or duly adopted rule of an authorized state entity.
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 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 periodically may issue its negotiable bonds and notes in a principal amount which, in the opinion of the authority, is necessary to provide sufficient funds for the construction, reconstruction, renovation and maintenance of one or more skilled nursing facilities that will serve the skilled nursing needs of veterans of the armed forces of the United States. As to bonds issued during the fiscal year ending the thirtieth day of June, two thousand one, the amount not exceeding fifteen million dollars, the revenues pledged for the repayment of principal and interest 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 four-b, article twenty-nine-a, chapter sixteen of this code for the construction, equipping and operation of one or more skilled nursing beds facilities for veterans of the armed forces of the United States military.
(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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