H. B. 4038
(By Delegates J. Martin, Varner,
Love and Stalnaker)
[Introduced January 10, 1996; referred to the
Committee on Finance.]
A BILL expiring funds in the amount of four hundred thousand
dollars from the bureau of employment programs, workers'
compensation fund, "WVFIMS" account no. fund 3440, fiscal
year 1996, organization 0322, and depositing said funds to
the credit of the unappropriated surplus balance in the
state fund, general revenue, and making such funds
available, upon further appropriation, to be applied toward
reduction of the unfunded liability of the workers'
compensation fund.
Whereas, The Legislature finds:
That compelling reasons of public policy require
cancellation of the lease-purchase agreement of certain real
property formerly occupied by staff of the Workers' Compensation
Division of the Bureau of Employment Programs, which real
property is located at 601 Morris Street in the City of
Charleston, West Virginia;
That the original lease-purchase agreement entered into
under a previous administration was predicated upon an
artificially inflated appraisal value for the property calculated
according to the value of payments anticipated under the lease,
unrelated to the actual fair market value of the property, and
that this appraisal failed to comply with provisions of the code
of state rules that an appraisal must be obtained as a means of
determining the fair rental value of the property;
That the state has an absolute right under the specific
terms of the lease to cancel its obligations upon thirty days
notice;
That the state was not a party to the subsequent issuance of
securities by the lessors of the property, a purely private
entity, and did not authorize, guarantee, endorse or otherwise
participate in the marketing of securities;
That retention of the building, a converted warehouse, in
hazardous condition, with numerous structural defects, would not
benefit the state and that requiring the people of the state to
continue to fund payments under the lease through tax revenues to
retain an empty structure unsuitable for any public purpose would
be fiscally irresponsible and a breach of public trust; therefore
Be it enacted by the Legislature of West Virginia:
That the balance of funds available for expenditure in the
fiscal year ending the thirtieth day of June, one thousand nine hundred ninety-six, to the bureau of employment programs,
workers' compensation fund, "WVFIMS" account no. fund 3440,
fiscal year 1996, organization 0322, be amended and decreased by
expiring from said account the balance of funds necessary for
payments under the lease-purchase agreement of that certain real
property located at 601 Morris Street in the City of Charleston,
the sum of four hundred thousand dollars, and depositing the same
to the credit of the unappropriated surplus balance in the state
fund, general revenue.
The purpose of this bill is to expire four hundred thousand
dollars from the balance of funds available to the bureau of
employment programs, workers' compensation fund, "WVFIMS" account
no. fund 3440, fiscal year 1996, organization 0322, thereby
failing to provide sufficient funds for continuation of payments
under the lease-purchase agreement of that certain real property
located at 601 Morris Street in the City of Charleston and
impairing the lease, and depositing the same to the credit of the
unappropriated surplus balance in the state fund, general
revenue, thereby making such funds available, upon further
appropriation by the Legislature, to be applied toward reduction
of the unfunded liability of the workers' compensation fund.
NOTE: The purpose of this bill is expire the sum of four
hundred thousand dollars from funds available in this fiscal year
to the Bureau of Employment Programs, thereby failing to provide
sufficient funds for continuation of payments under the lease-
purchase agreement of real property located at 601 Morris Street in the City of Charleston and impairing the lease.
This bill is recommended for passage during the 1996 regular
session of the Legislature by the Joint Committee on Government
Operations.