Senate Bill No. 125
(Senators McKenzie, Mitchell, Bowman, Oliverio,
Snyder and Kessler, original sponsors)
[Passed March 10, 2000; in effect ninety days from passage.]
AN ACT to amend article one, chapter seven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
by adding thereto a new section, designated section three-
gg, relating to empowering county commissions to execute
lease agreements to obtain equipment or materials.
Be it enacted by the Legislature of West Virginia:
That article one, chapter seven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
three-gg, to read as follows:
ARTICLE 1. COUNTY COMMISSIONS GENERALLY.
§7-1-3gg. Lease agreements for equipment or materials with
option to cancel or renew.
(a) In addition to all other powers and duties now conferred
by law upon county commissions, county commissions are hereby
authorized and empowered to enter into and execute a lease
agreement to obtain equipment or material.
(b) The lease agreement may not be voided because it
provides: (1) That title to the equipment or material shall vest
in the county commission at or before the expiration of the
leasehold term upon fulfillment of the terms and conditions
stipulated in the lease agreement; (2) for application of the
annual rental payments made under the lease agreement toward the
purchase price of the equipment or material, although the total
rental payments under the lease agreement are in excess of the
cash price of the equipment or material described in the lease
agreement, whether the excess is by way of interest or a time-
price differential; and/or (3) that the risk of loss of the
equipment or material shall be borne by the county commission.
(c) A lease agreement shall be void, unless the lease
agreement provides that the county commission has the following options, during each fiscal year of the lease agreement: (1) The
option to terminate the lease agreement and return the equipment
or material without any further obligation on the part of the
county commission; and (2) the option to continue the lease
agreement for an additional rental period not to exceed one year
When the lease agreement contains the provisions described
in subdivisions (1), (2) and (3), subsection (b) of this section,
then the following option must be included: The option to pay in
advance at any time during any fiscal year the balance due under
the lease agreement, with an appropriate rebate of the unearned
interest or time-price differential.
(d) The funds for the initial rental payment under a lease
agreement must be legally at the disposal of the county
commission for expenditure in the fiscal year in which the lease
agreement is executed. If the county commission elects during any
subsequent fiscal year to continue the lease agreement for any
additional rental period or to pay in advance the balance due,
the funds for the additional rental period or the funds to be
used to pay the balance in advance must be legally at the
disposal of the county commission for expenditure in the fiscal year in which the county commission elects to continue the lease
agreement or to pay in advance the balance due.