COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 500
(By Senator Chafin)
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[Originating in the Committee on Government Organization;
reported February 28, 1996.]
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A BILL to amend and reenact section four, article six, chapter five, of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend section forty, article three, chapter five-a of said code, all relating to purchase, lease, lease purchase, or otherwise, by the state building commission; acquisition or lease of property by the secretary of the department of administration; and prior approval by the joint committee on government and finance.

Be it enacted by the Legislature of West Virginia:
That section four, article six, chapter five, of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that section forty, article three, chapter five-a of said code be amended and reenacted, to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR; SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS, OFFICES, PROGRAMS, ETC.

ARTICLE 6. STATE BUILDING COMMISSION.

§5-6-4. Powers of commission.

The commission shall have power:
(1) To sue and be sued, plead and be impleaded;
(2) To have a seal and alter the same at pleasure;
(3) To contract to acquire and to acquire, subject to prior approval of the joint committee on government and finance, in the name of the commission or of the state, by purchase, lease, lease-purchase, or otherwise, real property or rights or easements necessary or convenient for its corporate purposes and to exercise the power of eminent domain to accomplish such purposes;
(4) To acquire, hold and dispose of personal property for its corporate purposes;
(5) To make bylaws for the management and regulation of its affairs;
(6) With the consent of the attorney general of the state of West Virginia, to use the facilities of his office, assistants and employees in all legal matters relating to or pertaining to the commission;
(7) To appoint officers, agents and employees, and fix their compensation;
(8) To make contracts, and to execute all instruments necessary or convenient to effectuate the intent of, and to exercise the powers granted to it by this article;
(9) To renegotiate all contracts entered into by it whenever, due to a change in situation, it appears to the commission that its interests will be best served;
(10) To construct a building or buildings on real property, which it may acquire, or which may be owned by the state of West Virginia, in the city of Charleston, as convenient as may be to the capitol building, together with incidental approaches, structures and facilities, subject to such consent and approval of the city of Charleston in any case as may be necessary and in all cases subject to prior approval of the joint committee on government and finance; and, in addition, to acquire or construct a warehouse, including office space therein, in Kanawha county for the West Virginia alcohol beverage control commissioner, and equip and furnish the same~~; and~~ subject to prior approval of the joint committee on government and finance; to acquire or construct, through lease, purchase, lease-purchase, or bond financing, hospitals or other facilities, buildings, or additions or renovations to buildings as may be necessary for the safety and care of patients, inmates and guests at facilities under the jurisdiction of and supervision of the division of health and at institutions under the jurisdiction of the division of corrections or the regional jail and correctional facilities authority; and to formulate and program plans for the orderly and timely capital improvement of all of said hospitals and institutions and the state capitol buildings, subject to prior approval of the joint committee on government and finance; and to construct a building or buildings in Kanawha county to be used as a general headquarters by the ~~division of public safety~~ state police to accommodate that ~~division's~~ state police's executive staff, clerical offices, technical services, supply facilities and dormitory accommodations~~; and~~ subject to prior approval of the joint committee on government and finance; to develop, improve and expand state parks and recreational facilities to be operated by the ~~division of commerce~~ division of natural resources, subject to prior approval of the joint committee on government and finance; to establish one or more systems or complexes of buildings and projects under control of the commission~~; and~~ subject to prior approval of the joint committee on government and finance; ~~and,~~ subject to prior agreements with holders of bonds previously issued, to change the same from time to time, in order to facilitate the issuance and sale of bonds of different series on a parity with each other or having such priorities between series as the commission may determine; and to acquire by purchase, eminent domain or otherwise all real property or interests therein necessary or convenient to accomplish the purposes of this subdivision; subject to prior approval of the joint committee on government and finance;
(11) To maintain, construct and operate a project authorized hereunder;
(12) To charge rentals subject to prior approval of the joint committee on government and finance, for the use of all or any part of a project or buildings at any time financed, constructed, acquired or improved in whole or in part with the proceeds of sale of bonds issued pursuant to this article, subject to and in accordance with such agreements with bondholders as may be made as hereinafter provided: Provided, That on and after the effective date of the amendments to this section, to charge rentals subject to prior approval of the joint committee on government and finance, for the use of all or any part of a project or buildings at any time financed, constructed, acquired, maintained or improved in whole or in part with the proceeds of sale of bonds issued pursuant to this article, subject to and in accordance with such agreements with bondholders as may be made as hereinafter provided, or with any funds available to the state building commission, including, but not limited to, all buildings and property owned by the state of West Virginia or by the state building commission, but no such rentals shall be charged to the governor, attorney general, secretary of state, state auditor, state treasurer, the Legislature and the members thereof, the supreme court of appeals, nor for their offices, agencies, official functions and duties;
(13) To issue negotiable bonds and to provide for the rights of the holders thereof;
(14) To accept and expend any gift, grant or contribution of money to, or for the benefit of, the commission, from the state of West Virginia or any other source for any or all of the purposes specified in this article or for any one or more of such purposes as may be specified in connection with such gift, grant or contribution;
(15) To enter on any lands and premises for the purpose of making surveys, soundings and examinations;
(16) To invest in United States government obligations, on a short-term basis, any surplus funds which the commission may have on hand pending the completion of any project or projects; and
(17) To do all things necessary or convenient to carry out the powers given in this article.
The rights and powers set forth in subdivision (10) of this section shall not be construed as in derogation of any rights and powers now vested in the West Virginia alcohol beverage control commissioner, ~~the department of mental health, the commissioner of public institutions~~ department of health and human resources, or the ~~department~~ division of natural resources.
CHAPTER 5A. DEPARTMENT OF ADMINISTRATION.

ARTICLE 3. PURCHASING DIVISION.

§5A-3-40. Selection of grounds, etc.; acquisition by contract or lease; long-term leases; requiring approval of secretary for permanent changes.

The secretary shall have sole authority to select and to acquire by contract or lease, in the name of the state, all grounds, buildings, office space or other space, the rental of which is necessarily required by any spending unit, upon a certificate from the chief executive officer or his designee of said spending unit that the grounds, buildings, office space or other space requested is necessarily required for the proper function of said spending unit, that the spending unit will be responsible for all rent and other necessary payments in connection with the contract or lease and that satisfactory grounds, buildings, office space or other space is not available on grounds and in buildings now owned or leased by the state and which decisions of the secretary are subject to the prior approval of the joint committee on government and finance. The secretary shall, before executing any rental contract or lease, determine the fair rental value for the rental of the requested grounds, buildings, office space or other space, in the condition in which they exist, and shall contract for or lease said premises at a price not to exceed the fair rental value thereof.
The secretary is hereby authorized to enter into long-term agreements for buildings, land and space for periods longer than one fiscal year: Provided, That such decision of the secretary shall be subject to the prior approval of the joint committee on government and finance: Provided, however, That such long-term lease agreements shall not be for periods in excess of forty years, except that the secretary may, in the case of the adjutant general's department, enter into lease agreements for a term of fifty years or a specific term of more than fifty years so as to comply with federal regulatory requirements, and shall contain, in substance, all the following provisions: (1) That the department of administration, as lessee, shall have the right to cancel the lease without further obligation on the part of the lessee upon giving thirty days' written notice to the lessor, such notice being given at least thirty days prior to the last day of the succeeding month; (2) that the lease shall be considered canceled without further obligation on the part of the lessee if the state Legislature or the federal government should fail to appropriate sufficient funds therefor or should otherwise act to impair the lease or cause it to be canceled; and (3) that the lease shall be considered renewed for each ensuing fiscal year during the term of the lease unless it is canceled by the department of administration before the end of the then current fiscal year.
A spending unit which is granted any grounds, buildings, office space or other space leased in accordance with this section may not order or make permanent changes of any type thereto, unless the secretary has first determined that the change is necessary for the proper, efficient and economically sound operation of the spending unit. For purposes of this section, a "permanent change" means any addition, alteration, improvement, remodeling, repair or other change involving the expenditure of state funds for the installation of any tangible thing which cannot be economically removed from the grounds, buildings, office space or other space when vacated by the spending unit.
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(NOTE: The purpose of this bill is to make state contracts and leases to acquire or lease property by the secretary of the department of administration subject to approval of the joint committee on government and finance, as well as purchases, leases, lease purchases and other such arrangements of the state building commission.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.)