ENGROSSED
Senate Bill No. 429
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[Originating in the Committee on Finance;
reported February 16, 1996.]
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A BILL to amend and reenact section eight, article six, chapter
five of the code of West Virginia, one thousand nine hundred
thirty-one, as amended; and to further amend said article by
adding thereto a new section, designated section eight-a, all
relating to the state building commission; allowing the
commission to issue state building revenue bonds; pledging the
moneys in the special fund; authorizing the bonds by
resolution; interest on and form of the bonds; exempting bonds
and interest from taxation; requiring a certain return on the
bonds; use and deposit of the proceeds from the sale of the
bonds; making bonds eligible investments for certain
retirement systems; limiting amount of bonds which may be
issued; legislative approval for certain projects; requiring the commission to acquire the former workers' compensation
building on Morris street; authorizing the issuance of bonds
or the borrowing of money from the board of investments for
certain specified projects and increasing the amount of bonds
or other form of financing which may be outstanding; removing
prohibition on financing or refinancing; authorizing the
commission to borrow money from the state board of investments
and authorizing the board of investments to invest in the
loans for purposes of certain specified projects; interest on
the loans; and repayment of the loans.
Be it enacted by the Legislature of West Virginia:
That section eight, article six, chapter five of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted; and that said article be further amended by
adding thereto a new section, designated section eight-a, all to
read as follows:
ARTICLE 6.STATE BUILDING COMMISSION.
§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 in section five of this article for such the 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 the special fund, except such that
part of the proceeds of sale of any bonds to be used to pay the
cost of a project and for the payment of the principal of and
interest on bonds issued pursuant to this article, such . The
pledge to shall apply equally and ratably to separate series of
bonds or upon such priorities as the commission shall determine.
Such The bonds shall be authorized by resolution of the commission.
which The resolution shall recite an estimate by the commission of
such the cost, and shall provide for the issuance of bonds in an
amount sufficient, when sold as hereinafter provided in this
section, to produce such the 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 The bonds shall 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 the bonds. The commission shall determine the form of such
the bonds, including coupons, if any, to be attached thereto to the
bonds to evidence the right of interest payments, which. The 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 to the bonds 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 by this section shall
cease to be such officers before the delivery of such the bonds,
such the signatures shall are nevertheless be valid and sufficient
for all purposes the same as if they had remained in office until
such the delivery. The commission shall fix the denominations of
such the 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 on the bonds are exempt from taxation by the state of West
Virginia, or any county or municipality therein in the state. The
commission may provide for the registration of such the 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 the 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. The sale to
shall 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 for the bonds. The proceeds of such the 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 exceeds the cost thereof of the project or
projects, the surplus shall be paid into the fund hereinafter
provided for in section five of this article for payment of the
principal and interest of such the bonds. Such The fund may be
used for the purchase of any of the outstanding bonds payable from
such the fund at the market price, but at not exceeding the price,
if any, at which such the bonds shall are in the same year be
redeemable, and all bonds redeemed or purchased shall forthwith be
canceled immediately, 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 in this section are 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 The 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 the project, construction or
acquisition.
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 the 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 that
subsection.
The commission shall acquire the property being lease-
purchased in the city of Charleston, located at 601 Morris street,
in accordance with the provisions of subsection (b) of this
section.
(b) Notwithstanding anything in this article to the contrary,
the commission is authorized to issue bonds, borrow money from the
state board of investments in accordance with the provisions of
section eight-a of this article 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 debt service reserve funds, in an amount not to
exceed twenty-one thirty million dollars:
(1) Any or all of the state office buildings and adjoining
real property being lease-purchased in Beckley, Charleston,
Clarksburg, Fairmont, Huntington and Parkersburg: 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
(3) Property and buildings needed for state spending units in
an amount not to exceed three million dollars.
§5-6-8a. Commission authorized to borrow money from the state board
of investments.
The commission is authorized to borrow money from the state
board of investments and the board of investments is authorized to
invest in the loans, for the purposes of financing or refinancing
the projects specified in subsection (b), section eight of this
article. The money borrowed will bear interest during the term of
the loan at a fixed rate not to exceed fifty basis points above the
average interest rate on treasury notes, bills or bonds of the same
term as the term of the loan the week of closing on the loan as
reported by the treasury of the United States. Loans made under
this section shall be repaid in regular monthly or semiannual
payments and in full not later than twenty-five years from the date
the loans are made with terms and conditions mutually agreed upon
by the commission and the state board of investments.