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Introduced Version House Bill 4469 History

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Key: Green = existing Code. Red = new code to be enacted
H. B. 4469


(By Delegates White (By Request),

M. Poling (By Request) and Kominar)

[Introduced February 8, 2008; referred to the
Committee on Education then Finance.]



A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §18B-1-9, relating generally to allowing governing boards of state colleges and universities to transfer real property or any interest therein to a nonstock, nonprofit real estate foundation that is exempt from federal income tax, when governing board determines that property was acquired by gift, grant devise or bequest to or for the college or university, or purchased by or for the college or university with private funds.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §18B-1-9, to read as follows:
ARTICLE 1. GOVERNANCE.
§18B-1-9. Conveyance of property to real estate foundations;
additional powers of governing boards.

(a)
Conveyance of property to and by foundation. -- The governing board of any institution of higher education may authorize the conveyance of any interest in property or improvements thereon held by the institution or any constituent unit thereof, or by the state or any agency of the state on behalf of the institution, to a real estate foundation when that institution's governing board finds that the property was acquired with private funds, or by gift, bequest or devise to or for the use of the institution, and not with funds appropriated to the institution by the Legislature. Any approved conveyance shall be exempt from any other section of this code concerning conveyance, transfer or sale of property notwithstanding any provision in such section or sections to the contrary. If the foundation conveys any interest in the property or any improvements thereon, the conveyance shall likewise be exempt from compliance with any statute concerning disposition of state property. Any income or proceeds from the conveyance of any interest in the property shall be deemed to be private funds of the foundation and may be used by the foundation for any foundation purpose. Upon termination of the foundation all of its net assets shall revert to the institution that established the foundation.
(b)
Purposes of foundation. -- The purposes of the real estate foundation shall include, but not be limited to, holding title to,
accepting, managing and disposing: (i) Real property and any improvements thereon or interest therein acquired by the institution by gift, grant, bequest or devise, or purchased by the institution using private funds; and (ii) any income derived from the property or proceeds from the sale or transfer of the property.
(c)
Creation of foundation; tax exempt status. -- The real estate foundation shall be established as a nonstock, nonprofit corporation established under the general corporation laws of this state. The foundation shall be operated solely in connection with and exclusively for the benefit of the institution and its affiliated organizations. No part of the foundation's net earnings may be used in any manner that is inconsistent with the purposes set forth herein and the foundation's exemption from federal income tax under 26 U.S.C. §501(c)(3).
(d)
Property defined. -- For purposes of this section, property means an interest in land including, but not limited to, any interest in natural resources on or under the surface of the land, and any improvements thereon.


NOTE: The purpose of this bill is allow state colleges and universities to better manage real property gifted to them, or acquired by them with private funds by allowing title to such properties to be transferred to a real estate foundation established as a nonstock, nonprofit corporation. The foundation must be exempt from federal income tax. The governing board must affirmatively approve each transfer but only upon a finding that the property was in fact gifted to the institution or was acquired with private moneys.


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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