Senate Bill No. 1002
(By Senators Burdette (Mr. President) and Boley
By Request of the Executive)
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[Introduced; referred to the Committee
on Finance.]
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A BILL to amend and reenact sections one and eight, article six,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the state
building commission; extending the termination of the
commission and authorizing the issuance of bonds to finance
and refinance thirty million five hundred thousand dollars
for specified purposes.
Be it enacted by the Legislature of West Virginia:
That sections one and eight, article six, chapter five of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 6. STATE BUILDING COMMISSION.
§5-6-1. Name of state office building commission changed;
composition; appointment, terms and qualifications of
members; chairman and secretary; compensation and expenses;
powers and duties generally; frequency of meetings;
continuation.
"The state office building commission of West Virginia,"
heretofore created, shall continue in existence but on and after
the ninth day of February, one thousand nine hundred sixty-six,
shall be known and designated as "The state building commission
of West Virginia" and shall continue as a body corporate and as
an agency of the state of West Virginia. On and after the date
aforesaid, the commission shall consist of the governor, attorney
general, state treasurer and four additional members to be
appointed by the governor by and with the advice and consent of
the Senate. The terms of office for said members to be appointed
by the governor shall be four years, except that the terms of
office of the first four members so appointed by the governor
shall be for one, two, three and four years, respectively. No
more than three of such members so appointed by the governor
shall be members of the same political party, nor shall any of
said members be members or employees of the executive,
legislative or judicial branches of government of West Virginia
or any political subdivision thereof. The governor shall be
chairman of the commission. The secretary of state shall be a
member of the commission and serve as its secretary, but shall
not have the right to vote upon matters before the commission.
All members of the commission shall be citizens and residents of
this state. The members of the commission shall be paid or
reimbursed for their necessary expenses incurred under this
article, but shall receive no compensation for their services as
members or officers of the commission:
Provided,
That eachmember of the commission appointed by the governor shall, in
addition to such reimbursement for necessary expenses, receive a
per diem of thirty-five dollars for each day or substantial
portion thereof that he is engaged in the work of the commission.
Such expenses and per diem shall be paid solely from funds
provided under the authority of this article, and the commission
shall not proceed to exercise or carry out any authority or power
herein given it to bind said commission beyond the extent to
which money has been provided under the authority of this
article. On or before the fifteenth day of each month, the
commission shall prepare and transmit to the president and
minority leader of the Senate and the speaker and the minority
leader of the House of Delegates a report covering the activities
of the said commission for the preceding calendar month.
After having conducted a performance audit through its joint
committee on government operations, pursuant to section nine,
article ten, chapter four of this code, the Legislature hereby
finds and declares that the state building commission should be
continued and reestablished. Accordingly, notwithstanding the
provisions of section four, article ten, chapter four of this
code, the state building commission shall continue to exist until
the first day of July, one thousand nine hundred ninety-four
ninety-seven.
§5-6-8. Commission empowered to issue state building revenue
bonds after legislative authorization; form and requirements
for bonds; procedure for issuance; temporary bonds; funds,grants and gifts.
(a) The commission is hereby empowered to raise the cost of
a project, as defined in this article, by the issuance of state
building revenue bonds of the state, the principal of and
interest on which bonds shall be payable solely from the special
fund herein provided for such payment. Subject to the
proceedings pursuant to which any bonds outstanding were
authorized and issued pursuant to this article, the commission
shall pledge the moneys in such special fund, except such part of
the proceeds of sale of any bonds to be used to pay the cost of
a project, for the payment of the principal of and interest on
bonds issued pursuant to this article, such pledge to apply
equally and ratably to separate series of bonds or upon such
priorities as the commission shall determine. Such bonds shall
be authorized by resolution of the commission which shall recite
an estimate by the commission of such cost, and shall provide for
the issuance of bonds in an amount sufficient, when sold as
hereinafter provided, to produce such cost, less the amount of
any funds, grant or grants, gift or gifts, contribution or
contributions received, or in the opinion of the commission
expected to be received, from the United States of America or
from any other source. The acceptance by the commission of any
and all such funds, grants, gifts and contributions, whether in
money or in land, labor or materials, is hereby expressly
authorized. All such bonds shall have and are hereby declared to
have all the qualities of negotiable instruments. Such bondsshall bear interest at not more than twelve percent per annum,
payable semiannually, and shall mature in not more than forty
years from their date or dates, and may be made redeemable at the
option of the state, to be exercised by the commission, at such
price and under such terms and conditions, all as the commission
may fix prior to the issuance of such bonds. The commission
shall determine the form of such bonds, including coupons, if
any, to be attached thereto to evidence the right of interest
payments, which bonds shall be signed by the chairman and
secretary of the commission, under the great seal of the state,
attested by the secretary of state, and the coupons, if any,
attached thereto shall bear the facsimile signature of the
chairman of the commission. In case any of the officers whose
signatures appear on the bonds or coupons issued as hereinbefore
authorized 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 commission 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 the state, or, at the option of
the holder, at some bank or trust company within or without the
state of West Virginia to be named in the bonds, in such medium
as may be determined by the commission. The bonds and interest
thereon shall be exempt from taxation by the state of West
Virginia, or any county or municipality therein. The commissionmay provide for the registration of such bonds in the name of the
owners as to principal alone, and as to both principal and
interest under such terms and conditions as the commission may
determine, and shall sell such bonds in such manner as it 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 project, such sale to be made at a
price not lower than a price which, computed upon standard tables
of bond values, will show a net return of not more than thirteen
percent per annum to the purchaser upon the amount paid therefor.
The proceeds of such bonds shall be used solely for the payment
of the cost of the project for which bonds were issued, and shall
be deposited and checked out as provided by section five of this
article, and under such further restrictions, if any, as the
commission may provide. If the proceeds of bonds issued for a
project or a specific group of projects 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 at not
exceeding the price, if any, at which such bonds shall in the
same year be redeemable, and all bonds redeemed or purchased
shall forthwith be canceled, and shall not again be issued.
Prior to the preparation of definitive bonds, the commission may,under like restrictions, issue temporary bonds with or without
coupons, exchangeable for definitive bonds upon the issuance of
the latter. Notwithstanding the provisions of sections nine and
ten, article six, chapter twelve of this code, revenue bonds
issued under the authority herein granted shall be eligible as
investments for the workers' compensation fund, teachers
retirement fund, division of public safety death, disability and
retirement fund, West Virginia public employees retirement system
and as security for the deposit of all public funds. Such
revenue bonds may be issued without any other proceedings or the
happening of any other conditions or things than those
proceedings, conditions and things which are specified and
required by this article, or by the constitution of the state.
For all projects authorized under the provisions of this
article other than projects to be leased by the commission to the
regional jail and correctional facilities authority, the
aggregate amount of all issues of bonds outstanding at one time
shall not exceed sixty-two million five hundred thousand dollars
including the renegotiation, reissuance or refinancing of any
such bonds, and no such project in connection with which bonds
are to be issued shall be initiated by the commission unless and
until the Legislature, through enactment of general law, approves
the purpose, the amount of bonds to be issued, and the total cost
for such project, construction or acquisition.
Prior to purchasing or leasing any real property or to
issuing any revenue bonds authorized pursuant to this section tocomplete projects specified in subsections (b) (3) and (4) of
this section, the commission shall study the feasibility of using
existing state-owned facilities for the project or projects under
consideration that would otherwise require construction or
leasing of facilities not owned by the state to provide
additional space for state agencies and offices. The commission
shall report the results of any such study to the joint committee
on government and finance which shall approve the purchase or
lease of real property, and the issuance of any revenue bonds to
be used to finance a project prior to the commission undertaking
the project.
For projects which are to be leased by the commission to the
regional jail and correctional facilities authority, legislative
approval pursuant to the provisions of this section shall not be
required if such projects have otherwise been approved by the
Legislature in accordance with the provisions of subsection (m),
section five, article twenty, chapter thirty-one of this code,
and the limitations on the amount of revenue bonds which may be
issued by the commission and the project costs shall be governed
by the terms of any concurrent resolution adopted pursuant to
said subsection.
(b) Notwithstanding anything in this article to the
contrary, the commission is authorized to issue bonds or
otherwise finance or refinance the following projects, including
the costs of issuance and sale of the bonds or financing, all
necessary financial and legal expenses and creation of debtservice reserve funds in an amount not to exceed twenty-one
million dollars as follows:
(1) Any or all of the state office buildings and adjoining
real property being lease-purchased in Beckley, Clarksburg,
Fairmont, Huntington and Parkersburg in an amount not to exceed
fifteen million dollars:
Provided,
That no such building and
adjoining real property shall be financed or refinanced unless
such financing or refinancing is at an interest rate at one and
one-half percent below the interest rate being paid by the
current owner under the lease-purchase agreement;
(2) A facility to be obtained or constructed by the
commission and leased to the division of motor vehicles; and
located at 4190 Washington Street in Charleston currently
occupied by the department of health and human resources in an
amount not to exceed two million five hundred thousand dollars;
and
(3) A facility to be obtained or constructed by the
commission and leased to the division of environmental protection
in an amount not to exceed twelve million dollars; and
(3) (4) Property and buildings needed for state spending
units in an amount not to exceed one million dollars; and
(5) The employment of bond counsel for the carrying out of
the purposes of this subsection shall be by solicitation of
competitive bids and the contract for such employment shall be
awarded to the lowest qualified responsible bidder.
(c) The commission shall study the economic feasibility ofconstructing a parking building on the capitol complex or in the
vicinity thereto, and shall submit a report on the economic
feasibility of same on or before the first day of January, one
thousand nine hundred ninety-five to the joint committee on
government and finance.
NOTE: The purpose of this bill is to extend the state
building commission and to authorize the financing and
refinancing of office buildings and other property in specific
amounts by project.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.