H. B. 2311
(By Mr. Speaker, Mr. Chambers, and Delegates Martin
and Mezzatesta)
[Introduced March 1, 1993; referred to the
Committee on Finance.]
A BILL authorizing the issuance and sale by the governor, on and
after the first day of July, one thousand nine hundred
ninety-three of bonds of the state of West Virginia, under
authority of the veterans bonus amendment of 1992, in an
amount not exceeding four million dollars, less any
appropriations of the Legislature made, for the sole purpose
of raising funds, in combination with appropriations of the
Legislature, for the payment of a cash bonus to veterans,
including the cost of administration necessarily incident
thereto; specifying the powers of and limitations upon the
governor in the issuance and sale of such bonds; prescribing
the duties of the auditor, treasurer and West Virginia state
board of investments with respect to such bonds; providing
for transfer and registration fees with respect to
registered bonds and the disposition of such fees; providing
for places of payment of principal and interest on such
bonds; exempting such bonds from taxation by the state, or
by any county, district or municipality thereof; setting
forth the form of coupon and registered bonds and coupons;
creating the veterans bonus sinking fund and stating what
money shall be paid into such fund, providing for the
disposition and investment of the veterans bonus sinking
fund; providing a covenant between the state and the
bondholders; creating the veterans bonus fund and providing
that all money as appropriated and made available by the
Legislature and the proceeds from the sale of the bonds
shall be paid into such fund for expenditure from such fund
and investment thereof, and disposition of any unexpended
balance; providing that the plates, etc., from which the
bonds are produced or made shall be the property of the
state; providing for interim certificates in lieu of
permanent bonds; providing for the West Virginia state board
of investments to be financial advisor; providing for the
attorney general or his duly appointed legal representative
or any other attorney at law authorized to act as bond
counsel and duly appointed by the governor to serve as bond
counsel; and providing that all necessary expenses,
including legal expenses approved by the attorney general,
or in the case of counsel appointed by the governor, the
governor, incurred in the execution of this bill shall be
paid out of the veterans bonus fund on warrants of the
auditor of the state drawn on the state treasurer.
Be it enacted by the Legislature of West Virginia:
ISSUANCE AND SALE OF VETERANS BONUS BONDS.
§l. Veterans bonus bonds; amount; authority to issue.
§2. Transfer fee; registration fee; where payable; interest rate; tax exempt.
§3. Form of bond.
§4. Form of coupon.
§5. Listing by West Virginia state board of investments.
§6. Veterans bonus sinking fund for payment of bonds and
interest; investment thereof.
§7. Covenants of state.
§8. Sale by governor; minimum price.
§9. Legislative appropriations and bond sale proceeds paid into
veterans bonus fund; expenditures; investment thereof;
unexpended balance.
§10. Plates, etc., property of state.
§11. Auditor to be custodian of unsold bonds.
§12. Interim certificates.
§13. West Virginia state board of investments to be financial
advisor.
§14. Bond counsel.
§15. Approval and payment of all necessary expenses.
§l. Veterans bonus bonds; amount; authority to issue.
Bonds of the state of West Virginia under authority of the
veterans bonus amendment of 1992, of the par value not to exceed
four million dollars, less any appropriations of the Legislature
made for the payment of a cash bonus to veterans as provided in
said amendment are hereby authorized to be issued and sold, on
and after the first day of July, one thousand nine hundred
ninety-three, for the sole purpose of raising funds in
combination with the appropriations of the Legislature as
aforesaid for the payment of a cash bonus to veterans as provided
for by the constitution and the laws enacted thereunder,
including the cost of administration necessarily incident
thereto. Such bonds may be issued by the governor in such
amounts, in coupon or registered form, in such denominations, at
such times on and after the first day of July one thousand nine
hundred ninety-three, and bearing such date or dates as the
governor may determine, and shall become due and payable
serially, annually or semiannually, in such amounts and at such
times as the governor may determine:
Provided,
That such bonds
shall mature within and not exceeding fifteen years from theirdate:
Provided, however,
That the governor may offer such bonds
for competitive bids from recognized financial investment
institutions before said bonds are sold. All of such bonds
maturing more than five years after the date of issuance thereof
shall be redeemable prior to maturity, at the option of the state
of West Virginia, at such time or times, at such premium or
premiums, and upon such other conditions as the governor shall
determine and prescribe in the notice of sale thereof.
§2. Transfer fee; registration fee; where payable; interest rate;
tax exempt.
The West Virginia state board of investments is hereby
authorized to arrange for the transfer of registered bonds, and
for each such transfer a fee of one dollar and fifty cents shall
be charged by and paid to the state of West Virginia, to the
credit of the veterans bonus sinking fund. Bonds taken in
exchange shall be cancelled by the state board of investments
and be carefully preserved by the state board of investments.
The state board of investments shall make provisions for
registering "payable to bearer" bonds, and for each bond
registered a fee of one dollar and fifty cents shall likewise be
charged by and paid to the state of West Virginia, to the credit
of the veterans bonus sinking fund. All of such bonds shall be
payable at the office of the state board of investments, or, at
the option of the holder, at such other bank or banks, as may be
designated or approved by the governor. The bonds shall bear
interest, payable semiannually, to bearer, at the office of the
state board of investments, or at the banks designated and
approved by the governor, upon presentation and surrender ofinterest coupons then due, in the case of coupon bonds. For the
payment of interest of registered bonds, the state board of
investments shall requisition a warrant from the auditor of the
state to be drawn on the state treasurer, and shall mail such
check to the registered owner at the address as shown by the
record of registration, or, at the option of the holder, by
electronic funds transfer. Both the principal and interest of
the bonds shall be made payable in lawful money of the United
States of America and the bonds shall be exempt from taxation by
the state of West Virginia, or by any county, district or
municipality thereof, which facts shall appear on the face of the
bonds as part of the contract with the holder thereof.
§3. Form of bond.
The bonds shall be executed on behalf of the state of West
Virginia, by the manual or facsimile signature of the treasurer
thereof, under the great seal of the state or a facsimile
thereof, and countersigned by the manual or facsimile signature
of the auditor of the state:
Provided,
That one of said
signatures on said bonds shall be a manual signature and said
bonds shall be in the following form or to the following effect,
as nearly as may be, namely:
VETERANS BONUS
COUPON BOND
(or registered bond as the case may be)
OF THE
STATE OF WEST VIRGINIA
$______________ No.____________
The state of West Virginia, under and by virtue of authority
of an amendment to the constitution, which was proposed by House
Joint Resolution No. 109, adopted the twenty-ninth day of
February one thousand nine hundred ninety-two, and was ratified
by a vote of the people at the general election on the third day
of November, one thousand nine hundred ninety-two, which is
hereby made a part hereof as fully as if set forth at length
herein, acknowledges itself to be indebted to and hereby promises
to pay to the bearer hereof (in case of a coupon bond) or to
or assigns (the owner of record, in
case of registered bonds) on the day of
__________________, 19__, in lawful money of the United States of
America at the office of the West Virginia state board of
investments, or, at the option of the holder, at
bank, the sum of dollars,
with interest thereon at percent per annum from
date, payable semiannually in like lawful money of the United
States of America at the state board of investments or banks
aforesaid, on the first day of and the first
day of of each year (and in the case of
coupon bonds) according to the tenor of the annexed coupons
bearing the facsimile signature of the treasurer of the state of
West Virginia, upon surrender of such coupons. This bond (in
case of a coupon bond) may be exchanged for a registered bond of
like tenor upon application to the state board of investments.
(Redemption provisions, if any, to be inserted here).
The state of West Virginia hereby covenants and agrees with
the holders of the bonds issued pursuant hereto as follows: (1)That this bond shall constitute a direct and general obligation
of the state of West Virginia; (2) that the full faith and credit
of the state is pledged to secure the payment of the principal
and interest of this bond; (3) that an additional or enhanced
state tax shall be levied and collected in such amounts as may be
required to pay annually the interest on this bond and the
principal thereof within and not exceeding fifteen years; (4)
that the additional or enhanced tax so levied and collected shall
be irrevocably dedicated to the payment of the interest on this
bond and the principal thereof until the interest on this bond
and the principal thereof is finally paid and discharged; (5)
that the additional or enhanced tax otherwise provided by law for
the payment of this bond, shall not be reduced so long as the
interest on any of the veterans bonus bonds, or the principal
thereof is outstanding and unpaid, unless the payment thereof has
been adequately provided for; and (6) to the full extent
permitted by the constitution of West Virginia, any of the
covenants, agreements or provisions in the acts of the
Legislature providing for such levying or collection of such
taxes or charges shall be enforceable in any court of competent
jurisdiction by any of the holders of such bonds or of any
interest coupon appertaining thereto.
This bond is hereby made exempt from any taxation by the
state of West Virginia, or by any county, district or municipal
corporation thereof.
In testimony whereof, witness the manual or facsimile
signature of the treasurer of the state of West Virginia, and the
manual or facsimile countersignature of the auditor of the state,hereto affixed according to law, dated the day of
_____________, one thousand nine hundred ________________, and
the seal of the state of West Virginia or a facsimile thereof.
_____________________________________
Treasurer of the State of West Virginia
(SEAL)
Countersigned:
_________________________________________
Auditor of the State of West Virginia
§4. Form of coupon.
The form of coupon shall be substantially as follows, to
wit:
STATE OF WEST VIRGINIA
Bond No._______________ Coupon No._________
On the first day of , 19 , the state of West Virginia
will pay to the bearer, in lawful money of the United States of
America, at the office of the West Virginia state board of
investments at the capitol of said state, or, at the option of
the holder, at bank, the sum of
dollars, the same being semiannual
interest on Veterans Bonus Bond No._____________.
_________________________________________
Treasurer of the State of West Virginia
The signature of the treasurer to such coupon shall be by
his facsimile signature and the coupons shall be numbered in the
order of their maturity, from number one consecutively. The
bonds and coupons may be signed, as provided in this bill, by thepresent treasurer and auditor, or by any of their respective
successors in office, and the bonds signed by the persons now in
the office may be sold by the governor or his successor in office
without being signed by the successor in office of the present
treasurer or auditor.
§5. Listing by West Virginia state board of investments.
All coupons and registered bonds issued under this bill
shall be separately listed by the West Virginia state board of
investments in books provided for the purpose, in each case
giving the date, number, character and amount of obligations
issued, and in case of registered bonds, the name and post-office
address of the person, firm or corporation registered as the
owner thereof.
§6. Veterans bonus sinking fund for payment of bonds and
interest; investment thereof.
There is hereby created in the office of the West Virginia
state board of investments a veterans bonus sinking fund. Into
such fund there shall be paid all moneys received from all taxes
or charges made applicable by law to the payment of such bonds or
the interest thereon, from transfer and registration fees as
herein provided, and from any other source whatsoever which is
made liable by law for the payment of the principal of such bonds
or the interest thereon.
All such funds shall be kept by the treasurer in a separate
account under the designation aforesaid, and all money belonging
to the fund shall be deposited in the state treasury to the
credit thereof.
Such fund shall be applied by the state board of investmentsfirst to the payment of the principal and semiannual interest on
such bonds as it shall become due as herein provided. The
remainder of the fund shall be invested by the state board of
investments in accordance with the provisions of article six,
chapter twelve of the code of West Virginia, one thousand nine
hundred thirty-one as amended:
Provided,
That the bonds or other
obligations so purchased by the state board of investments shall
mature so as to provide sufficient money to pay off all bonds
herein provided to be issued as they become due; and the money so
paid into the veterans bonus sinking fund under the provisions of
this bill shall be expended for the purpose of paying the
interest and principal of the bonds hereby provided for as they
severally become due and payable and for no other purpose except
that the fund may be invested until needed, as herein provided:
Provided, however,
That upon final payment and discharge of all
bonds issued pursuant to this bill, the unexpended balance, if
any, remaining in the fund shall be transferred to other accounts
or funds and redesignated for other purposes by appropriation of
the Legislature.
§7. Covenants of state.
The state of West Virginia hereby covenants and agrees with
the holders of the bonds issued pursuant hereto as follows: (1)
That this bond shall constitute a direct and general obligation
of the state of West Virginia; (2) that the full faith and credit
of the state is pledged to secure the payment of the principal
and interest of this bond; (3) that an additional or enhanced
state tax shall be levied and collected in such amounts as may be
required to pay annually the interest on this bond and theprincipal thereof within and not exceeding fifteen years; (4)
that the additional or enhanced tax so levied and collected shall
be irrevocably dedicated to the payment of the interest on this
bond and the principal thereof until the interest on this bond
and the principal thereof is finally paid and discharged; (5)
that the additional or enhanced tax otherwise provided by law for
the payment of this bond, shall not be reduced so long as the
interest on any of the veterans bonus bonds, or the principal
thereof is outstanding and unpaid, unless the payment thereof has
been adequately provided for; and (6) to the full extent
permitted by the constitution of West Virginia, any of the
covenants, agreements or provisions in the acts of the
Legislature providing for such levying or collection of such
taxes or charges shall be enforceable in any court of competent
jurisdiction by any of the holders of such bonds or of any
interest coupon appertaining thereto.
§8. Sale by governor; minimum price.
The governor shall sell the bonds herein authorized at such
time or times on and after the first day of July, one thousand
nine hundred ninety-three as he may determine necessary to
provide funds for the payment of the bonus as herein provided.
All sales shall be at not less than par and accrued interest.
All interest coupons becoming payable prior to the sale date
shall be cancelled by the West Virginia state board of
investments and rendered ineffective, before the delivery of the
bonds so sold.
§9. Legislative appropriations and bond sale proceeds paid into
veterans bonus fund; expenditures; investment thereof;
unexpended balance.
All moneys as appropriated and made available by the
Legislature for the payment of a cash bonus to veterans as
provided in said amendment and the proceeds of all sales of bonds
herein authorized shall be paid into the veterans bonus fund
which is hereby created in the office of the state treasurer and
such fund shall be expended solely for the payment of such
veterans bonus and the cost of administration necessarily
incident thereto. Except for such sums necessary for current
operating balances, such fund shall be invested and reinvested by
the West Virginia state board of investments in accordance with
the provisions of article six, chapter twelve of the code of West
Virginia, one thousand nine hundred thirty-one, as amended:
Provided,
That no such investment or reinvestment shall adversely
affect the current operating balances of such fund.
Any unexpended balance remaining in this fund after payment
of all legal bonuses have been made or adequately provided for
shall be available for appropriation by the Legislature, unless
bonds shall have been issued, in which case such unexpended
balance shall be transferred to the veterans bonus sinking fund
and used solely for payment of the bonus bonds.
§10. Plates, etc., property of state.
The plates, casts, dies or other forms from which the bonds
authorized by this bill are produced or made shall be the
property of the state of West Virginia.
§11. Auditor to be custodian of unsold bonds.
The state auditor shall be the custodian of all unsold bonds
issued pursuant to the provisions of this bill.
§12. Interim certificates.
For the purpose of facilitating the payment of veterans
bonus awards, prior to the issuance of any permanent bonds, the
governor may authorize issuance by the West Virginia state board
of investments of short-term interim certificates to purchasers,
on and after the first day of July, one thousand nine hundred
ninety-three, for a period not to exceed eighteen months and in
sufficient amount as required to meet bonus award obligations.
During the period such interim certificates are outstanding, as
specified, it shall be ascertained, as near as may be, the total
number of persons entitled to such awards who have not been or
cannot be paid out of legislative appropriations for such
purpose, the total cost of such awards remaining to be made, and
the most favorable time for market and sale of permanent bonds,
with sale of permanent bonds to thereupon occur and with the
resultant retirement of said interim certificates. The interim
certificates, when issued and outstanding, shall be full and
legal obligations of the state of West Virginia under all of the
provisions of this bill just as fully and completely as permanent
bonds.
§13. West Virginia state board of investments to be financial
advisor.
The West Virginia state board of investments shall serve as
financial advisor to the governor for the issuance and sale of
such bonds.
§14. Bond counsel.
The attorney general, or his duly appointed legal
representative, or any other attorney at law authorized to act asbond counsel and duly appointed by the governor to serve as bond
counsel, shall be responsible for the issuance of a final
approving opinion regarding the legality of the sale of such
bonds.
§15. Approval and payment of all necessary expenses.
All necessary expenses, including legal expenses approved by
the bond counsel, or in the case of counsel appointed by the
governor, the governor, incurred in the execution of this bill
shall be paid out of the veterans bonus fund on warrants of the
auditor of the state drawn on the state treasurer.
NOTE: The purpose of this bill is to give partial effect to
the veterans bonus amendment of 1992 by establishing guidelines
for the issuance and sale of veterans bonus bonds. This bill's
compliment is the "Payment of Veterans Bonus" bill.
This bill is new; therefore, strike-throughs and
underscoring have been omitted.