H. B. 4683
(By Mr. Speaker, Mr. Kiss, and Delegates Martin, Michael,
Mezzatesta, Staton, and Warner)
[Introduced February 27, 1998; referred to the
Committee on Finance.]
A BILL to amend section two, article twenty-six, chapter seventeen
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 four-a, all
relating to creation of the "Safe Road Bond Trust Fund";
specifying expenditures therefrom; providing for investment of
the remainder; and requiring that bonds issued pursuant to the
"Safe Roads Bond Amendment" comply with the provisions of the
Internal Revenue Code in regard to tax exempt status.
Be it enacted by the Legislature of West Virginia:
That section two, article twenty-six, chapter seventeen 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 four-a,
all to read as follows:
ARTICLE 26. STATE ROAD BONDS
§17-26-2. State road general obligation bonds; amount; when may issue.
Bonds of the state of West Virginia, under authority of the
"Safe Roads Amendment of 1996" of the par value not to exceed in
the aggregate five hundred fifty million dollars, are hereby
authorized to be issued and sold for matching available federal
funds for highway construction and for general highway construction
or improvements in each of the fifty-five counties in this state,
as provided for by the constitution and the provisions of this
article. During the fiscal year ending the thirtieth day of June,
one thousand nine hundred ninety-eight, the amount of one hundred
ten million dollars in bonds may be sold. That same amount is
authorized to be sold in each of the next four following fiscal
years: Provided, That any amount not sold in a fiscal year may be
carried forward and sold in the next fiscal year.
These bonds may be issued by the governor upon resolution
passed by the Legislature authorizing the same. The bonds shall
bear the date and mature at the time, bear interest at the rate, be
in amounts, be in denominations, be in the registered form, carry
registration privileges, be due and payable at the time and place
and in amounts, and subject to terms of redemption as the
resolution may allow. The bonds shall comply in all respects to
the relevant provisions pertaining to tax exempt bonds set forth in title twenty-six of the United States code.
Both the principal and interest of the bonds shall be payable
in the lawful money of the United States of America and the bonds
and the interest thereon shall be exempt from taxation by the state
of West Virginia, or by any county, district or municipality
thereof, which fact shall appear on the face of the bonds as part
of the contract with the holder of the bond.
The bonds shall be executed on behalf of the state of West
Virginia, by the manual or facsimile signature of the state
treasurer, under the great seal of the state or a facsimile of the
great seal, and countersigned by the manual or facsimile signature
of the auditor of the state.
§17-26-4a. Safe road bond trust fund; creation; expenditures therefrom; investment of remainder.
There is hereby created a special account in the state
treasury, which shall be designated and known as "The Safe Road
Bond Trust Fund", into which shall be deposited all proceeds from
the sale of bonds issued pursuant to section two of this article.
All funds deposited to the credit of the safe road bond trust fund
shall be kept by the state treasurer in a separate account and all
money belonging to the fund shall be deposited in the state
treasury to the credit of the fund.
All expenditures from the safe road bond trust fund shall only
be upon appropriation by the legislature: Provided, That the governor may expend money from this fund at any time solely for the
purpose of matching available federal funds for highway
construction: Provided however, That all proceeds from the sale of
bonds be expended within two years from the date the funds were
The fund shall be invested by the investment and management
board in the manner authorized under article six, chapter twelve of
this code. The bonds and expenditures from the fund created in
this section shall comply in all respects to the relevant
provisions pertaining to tax exempt bonds set forth in title
twenty-six of the United States code.
NOTE: The purpose of this bill is to create the Safe Road Bond
Trust Fund into which the proceeds from the issuance of the Safe
Road bonds shall be placed. The Governor may expend moneys from
this fund for the purposes of matching federal funds for the
construction, maintenance and improvement of state highways. All
other expenditures from the fund shall be upon appropriation. The
bill adds the requirement that both the bond and the funds meet all
applicable requirements in the Internal Revenue Code for tax exempt
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
Section 17-26-4a is new; therefore strike-throughs and
underlining have been omitted.