COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 388
(By Senators Wagner, Bailey and Chafin)
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[Originating in the Committee on Finance;
reported March 3, 1994.]
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A BILL to amend and reenact sections three, ten and twenty-three, article sixteen-a, chapter seventeen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to creation of the West Virginia parkways, economic development and tourism authority; increasing the membership of the authority; meetings of the authority; execution of surety bonds by members; payment of the members expenses; issuance of parkway revenue bonds; requiring the parkway authority to issue five million dollars in revenue bonds that may be retired by user fees in order to finance new water and sewer development within a seventy-five air mile radius of the turnpike; form of the bonds; use of proceeds from the bonds; creation of special highway fund; authority to transfer funds to insurance fund; authority to transfer funds to economic development fund; and appropriation of funds deposited in the special highway fund.

Be it enacted by the Legislature of West Virginia:
That sections three, ten and twenty-three, article sixteen- a, chapter seventeen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:

ARTICLE 16A. WEST VIRGINIA PARKWAYS, ECONOMIC DEVELOPMENT AND TOURISM AUTHORITY.

§17-16A-3. Dissolution and termination of West Virginia turnpike commission; West Virginia parkways, economic development and tourism authority generally.

On and after the first day of June, one thousand nine hundred eighty-nine, the West Virginia turnpike commission is hereby abolished in all respects, and there is hereby created the "West Virginia Parkways, Economic Development and Tourism Authority", and by that name the parkways authority may sue and be sued and plead and be impleaded. The parkways authority is hereby constituted an agency of the state, and the exercise by the parkways authority of the powers conferred by this article in the construction, reconstruction, improvement, operation and maintenance of parkway, economic development and tourism projects shall be considered and held to be an essential governmental function of the state.
The West Virginia parkways, economic development and tourism authority shall consist of seven members, including the transportation secretary, who shall serve as chairman of the parkways authority, and six members, including no less than one from each of the counties which have land bordering parkway projects, appointed by the governor, by and with the advice and consent of the Senate. The appointed members shall be residentsof the state, and shall have been qualified electors in the state for a period of at least one year next preceding their appointment. Upon the effective date of this legislation, the governor shall forthwith appoint six members of the parkways authority for staggered terms. The terms of the parkways authority members first taking office on or after the effective date of this legislation shall expire as designated by the governor at the time of the nomination, one at the end of the first year, one at the end of the second year, one at the end of the third year, one at the end of the fifth year, one at the end of the sixth year and one at the end of the seventh year, after the first day of June, one thousand nine hundred eighty-nine. As these original appointments expire, each subsequent appointment is for a full eight-year term. Any member whose term has expired shall serve until his or her successor has been duly appointed and qualified. Any person appointed to fill a vacancy shall serve only for the unexpired term. Any member is eligible for reappointment. Each appointed member of the parkways authority before entering upon his or her duties shall take an oath as provided by section five, article IV of the constitution of the state of West Virginia.
The parkways authority shall elect one of the appointed members as vice chairman and shall also elect a secretary and treasurer who need not be members of the parkways authority. Four members of the parkways authority constitute a quorum and the vote of a majority of members present is necessary for any action taken by the parkways authority. No vacancy in the membership of the parkways authority impairs the right of aquorum to exercise all the rights and perform all the duties of the parkways authority. The parkways authority shall meet at least monthly and either the chairman or any four members shall be empowered to call special meetings for any purpose or purposes: Provided, That notice of any meeting shall be given to all members of the parkways authority not less than ten days prior to the special meetings.
On or about the first day of July, one thousand nine hundred ninety-four, the governor shall appoint, with the advice and consent of the Senate, four additional members to serve on the authority for a total of eleven members. Upon the number of the members of the authority increasing to eleven, six members constitute a quorum and the vote of a majority of members present is necessary to call a meeting or for any other action taken by the parkways authority. The additional members shall be from counties contiguous to any county that borders the parkway and they shall serve for full eight-year terms from the date in which they are appointed.
Before the issuance of any parkway revenue bonds or revenue refunding bonds under the provisions of this article, each appointed member of the parkways authority shall execute a surety bond in the penal sum of twenty-five thousand dollars and the secretary and treasurer shall execute a surety bond in the penal sum of fifty thousand dollars, each surety bond to be conditioned upon the faithful performance of the duties of his or her office, to be executed by a surety company authorized to transact business in the state of West Virginia as surety and to be approved by the governor and filed in the office of the secretaryof state.
The members of the parkways authority are not entitled to compensation for their services, but each member shall be reimbursed for his or her actual expenses necessarily incurred in the performance of his or her duties. All expenses incurred in carrying out the provisions of this article are payable solely from funds provided under the authority of this article and no liability or obligation shall be incurred by the parkways authority hereunder beyond the extent to which moneys have been provided under the authority of this article.

§17-16A-10. Parkway revenue bonds -- Generally.

The parkways authority is hereby authorized to provide by resolution, at one time or from time to time, 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 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: Provided, however, That the parkways authority shall issue five million dollars in parkway revenue bonds no later than the first day of January, one thousand nine hundred ninety-five, which shall be used for the purpose of undertaking and financing economic development projects, as authorized by this article, which consist of developing new water and sewer facilities within a seventy-five air mile radius of the West Virginia turnpike. The bonds may be retired by revenues generated by user fees from parkway projects funded under subsection (c), sectiontwenty-three of this article. The principal of and the interest on the bonds is payable solely from the funds provided in this section for such payment. The bonds of each issue shall be dated, shall bear interest at such rate or rates as may be determined by the parkways authority in its sole discretion, shall mature at such time or times not exceeding forty years from their date or dates, as may be determined by the parkways authority, and may be made redeemable before maturity, at the option of the parkways authority, at such price or prices and under such 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 or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. The bonds shall be executed by manual or facsimile signature by the governor and by the chairman of the parkways authority, and the official seal of the parkways authority shall be affixed to or printed on each bond, and attested to, manually or by facsimile signature, by the secretary and treasurer of the parkways authority, and any coupons attached to any bond shall bear the manual or facsimile signature of the chairman of the parkways authority. In case any officer whose signature or a facsimile of whose signature appears on any bonds or coupons shall cease to be such officer before the delivery of the bonds, the signature or facsimile is nevertheless valid and sufficient for all purposes the same as if he or she had remained in office until thedelivery; and, in case the seal of the parkways authority has been changed after a facsimile has been imprinted on the bonds, the facsimile seal will continue to be sufficient for all purposes. All bonds issued under the provisions of this article shall have and are hereby declared to 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. The parkways authority may sell the bonds in such manner, either at public or at private sale, and for such price, as it may determine to be in the best interests of the state.
The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the parkway project or projects for which the bonds were issued, and shall be disbursed in such manner and under such restrictions, if any, as the parkways authority may provide in the resolution authorizing the issuance of the bonds or in the trust agreement hereinafter mentioned securing the same. If the proceeds of the bonds of any issue, by error of estimates or otherwise, is less than such cost, additional bonds may in like manner be issued to provide the amount of the deficit, and, unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement securing the same, are considered to be of the same issue and shall be entitled to payment from the same fund withoutpreference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed the cost of the project or projects for which the bonds were issued, the surplus shall be deposited to the credit of the sinking fund for the bonds.
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 which become mutilated, destroyed or lost. 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, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this article.

§17-16A-23. Special highway fund; appropriations from fund.

(a) There is hereby created a special fund in the state treasury which shall be designated and known as the "West Virginia special highway fund". The special highway fund shall consist of: (i) All funds allocated and disbursed to the state department of highways by the parkways authority, including without limitation the proceeds of any parkway revenue bonds or revenue refunding bonds issued by the parkways authority pursuant to section eleven, twenty-one or twenty-two of this article, in repayment of the amount of state funds used to upgrade the West Virginia turnpike to federal interstate standards; (ii) anyappropriations, grants, gifts, contributions or other revenues received by the special highway fund from any source; and (iii) all interest earned on moneys held in the fund. When any funds are received by the state department of highways from the parkways authority pursuant to this section, they shall be paid into the state treasury by the commissioner of the department of highways and credited to the special highway fund, and shall be disbursed in the manner set forth in subsections (b) and (c) of this section. The special highway fund shall not be treated by the auditor and treasurer as part of the state road fund or as part of the general revenues of the state.
(b) The governor has authority to transfer to the insurance fund created in section eight, article fifteen, chapter thirty- one of this code, on any date or dates after the enactment of this section, up to thirty-five million dollars of the funds received or earned by the special highway fund, which funds may be used and applied by the West Virginia economic development authority in the manner and to the extent set forth in article fifteen, chapter thirty-one of this code. On or before the thirty-first day of December, one thousand nine hundred ninety- four, the economic development authority shall retransfer to the special highway fund the thirty-five million dollars advanced to the insurance fund pursuant to this section. All interest earned on the thirty-five million dollars while being held in the insurance fund shall remain in, and be the property of the insurance fund: Provided, That on and after the first day of July, one thousand nine hundred ninety-two, the governor has the authority to transfer six million dollars from the insurance fundcreated in section eight, article fifteen, chapter thirty-one of this code to a special fund hereby created in the state treasury and designated "the West Virginia economic development fund". Expenditures from the fund shall be made only in accordance with appropriations by the Legislature.
(c) Upon the transfer of thirty-five million dollars to the insurance fund as provided in subsection (b) of this section, the Legislature shall annually appropriate all or any part of the balance of the funds deposited in the special highway fund for the construction, reconstruction, improvement, maintenance or repair of any parkway project or projects: Provided, That all of the funds shall be appropriated to: (i) The upgrading or addition of interchanges; (ii) the construction of expressways or feeder roads; or (iii) the upgrading or construction of information centers, visitors' centers, rest stops, new water and sewer facilities, or any combination thereof, and that all such feeder roads, expressways, interchanges, information centers, visitors' centers, rest stops or new water and sewer facilities shall connect to the West Virginia turnpike or be within seventy- five air miles of the West Virginia turnpike as it existed on the effective date of this legislation, or shall connect to any subsequent expressway, turnpike or feeder road constructed pursuant to this subsection. The appropriation of funds pursuant to this subsection shall be expended on more than one project and a total of at least five million dollars shall be allocated no later than the first day of July, one thousand nine hundred ninety-five, in order to finance and construct new water and sewer lines within a seventy-five air mile radius of theturnpike.