H. B. 4269
(By Delegates Gearheart, Frazier, Hall,
Moore, Sumner, O’Neal, Ellington,
L. Phillips, and Savilla)
[Introduced January 23, 2012; referred to the
Committee on Roads and Transportation then Finance.]
A BILL to amend and reenact §17-16A-10 and §17-16A-18 of the Code of West Virginia, 1931, as amended, all relating to eliminating tolls on the West Virginia Turnpike before February 1, 2020, providing that no new bonds may be issued; providing an exception; and providing that the West Virginia Department of Highways accept ownership of the turnpike when the bonds secured by toll revenues have been paid.
Be it enacted by the Legislature of West Virginia:
That §17-16A-10 and §17-16A-18 of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:
ARTICLE 16A. WEST VIRGINIA PARKWAYS, ECONOMIC DEVELOPMENT AND TOURISM AUTHORITY.
§17-16A-10. Parkway revenue bonds generally.
(a) The Parkways Authority is authorized to provide by resolution for the issuance of parkway revenue bonds of the state for the purpose of paying all or any part of the cost of one or more parkway projects: Provided, That this section shall not be construed as authorizing the issuance of parkway revenue bonds for the purpose of paying the cost of the West Virginia Turnpike, which parkway revenue bonds may be issued only as authorized under section eleven of this article. The principal of and the interest on bonds shall be payable solely from the funds provided for payment.
(b) The bonds of each issue shall be dated, shall bear interest at a rate as may be determined by the Parkways Authority in its sole discretion, shall mature at a time not exceeding forty years from their date or of issue as may be determined by the Parkways Authority, and may be made redeemable before maturity, at the option of the Parkways Authority at a price and under the terms and conditions as may be fixed by the Parkways Authority prior to the issuance of the bonds.
© The Parkways Authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at any bank or trust company within or without the state.
(d) The bonds shall be executed by manual or facsimile signature by the chair of the Parkways Authority, and the official seal of the Parkways Authority shall be affixed to or printed on each bond, and attested, manually or by facsimile signature, by the secretary and treasurer of the Parkways Authority. Any coupons attached to any bond shall bear the manual or facsimile signature of the chair of the Parkways Authority.
(e) In case any officer whose signature or a facsimile of whose signature appears on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until delivery. In case the seal of the Parkways Authority has been changed after a facsimile has been imprinted on the bonds, then the facsimile seal will continue to be sufficient for all purposes.
(f) All bonds issued under the provisions of this article shall have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the state. The bonds may be issued in coupon or in registered form, or both, as the Parkways Authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the recorders into coupon bonds of any bonds registered as to both principal and interest.
(g) The Parkways Authority may sell the bonds at a public or private sale at a price it determines to be in the best interests of the state.
(h) The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the parkway project or parkway projects for which the bonds were issued, and shall be disbursed in a manner consistent with the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds.
(I) If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than the cost, then additional bonds may in like manner be issued to provide the amount of the deficit. Unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds, the additional bonds 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. Except as provided in this subsection, additional bonds may not be issued on any parkways project related to the West Virginia Turnpike or which would use West Virginia Turnpike toll revenues as a funding stream for the bonded indebtedness or on any expansion or material alteration to any existing parkways project which would use West Virginia Turnpike toll revenues as a funding stream for the bonded indebtedness.
(j) If the proceeds of the bonds of any issue exceed the cost of the parkway project or parkway projects for which the bonds were issued, then the surplus shall be deposited to the credit of the sinking fund for the bonds.
(k) Prior to the preparation of definitive bonds, the Parkways Authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery. The Parkways Authority may also provide for the replacement of any bonds that become mutilated or are destroyed or lost.
(l) Bonds may be issued under the provisions of this article without obtaining the consent of any department, division, commission, board, bureau or agency of the state in accordance with this article: Provided, That the Parkways Authority shall comply with the provisions of section twenty-eight, article one, chapter five of this code.
§17-16A-18. Cessation of tolls.
(a) Except as provided herein in this section, when all bonds issued under the provisions of this article in connection with any parkway project or projects and the interest thereon shall on those bonds secured by West Virginia Turnpike toll revenues have been paid or a sufficient amount for the payment of all such those bonds and the interest thereon on them to the their maturity thereof shall have has been set aside in trust for the benefit of the bondholders, such the project or projects, if then in good condition and repair to the satisfaction of the Commissioner of the State Division of Highways, shall be transferred to the State Division of Highways and shall thereafter be maintained by the State Division of Highways free of tolls.
(b) No later than February 1, 1990 Before February 1, 2020, the Parkways Authority, or its successors, shall discontinue, remove and not relocate all toll collection facilities on the West Virginia Turnpike as the same it existed on June 1, 1989, except for the three main toll barriers and collection facilities and, provided solely that the provisions of section eighteen-a are complied with including the toll collection facilities at the intersection of U.S. Route 19 (Corridor "L") and said the turnpike, provided that the bonds secured by West Virginia Turnpike toll revenues have been paid as scheduled.
The highway now known and designated as the West Virginia Turnpike shall continue to be maintained to the standards promulgated by the West Virginia Department of Highways, and shall at that time, be turned over to the West Virginia Department of Highways, along with all assets, consisting of both real estate and personal property and equipment, used by the Parkways Authority for maintenance of the West Virginia Turnpike. The West Virginia Department of Highways must accept ownership of the highway at that time.
NOTE: The purpose of this bill is to eliminate tolls on the West Virginia Turnpike by February 1, 2020. The bill provides that new bonds may not be issued. The bill also provides an exception, if the bonds are less than the actual cost. And, it provides that the West Virginia Department of Highways accept ownership of the turnpike when the bonds secured by toll revenues have been paid.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.