H. B. 2951
(By Mr. Speaker, Mr. Kiss, and
Delegates Smirl and Morgan)
[Introduced March 21, 2001; referred to the
Committee on Education then Finance.]
A BILL to amend and reenact sections thirteen, fourteen, sixteen,
seventeen, eighteen, nineteen, twenty, twenty-one, twenty-two
and twenty-three, article twenty-three, chapter eighteen of
the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to authorizing the funding,
erection, improvement, equipping, operating, and maintenance
of dormitories, housing facilities, food service facilities
and motor vehicle parking facilities.
Be it enacted by the Legislature of West Virginia:
That sections thirteen, fourteen, sixteen, seventeen,
eighteen, nineteen, twenty, twenty-one, twenty-two and
twenty-three, article twenty-three, chapter eighteen of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted to read as follows:
ARTICLE 23. ADDITIONAL POWERS, DUTIES AND RESPONSIBILITIES OF GOVERNING BOARDS OF STATE INSTITUTIONS OF HIGHER
EDUCATION.
§18-23-13. Construction and operation of dormitories, housing
facilities, food service facilities and motor
vehicle parking facilities for teachers and
students.
The governing boards are hereby authorized to provide,
construct, erect, improve, equip, maintain and operate dormitories,
homes or refectories housing facilities, food service facilities
and motor vehicle parking facilities on land owned by the state for
students or teachers at the various state educational institutions
of higher education under their control, but the cost of
construction, erection, improvement or equipment shall be solely by
means of or with the proceeds of the revenue bonds hereinafter
authorized. The governing boards shall have power and authority to
employ engineering, architectural and construction experts, and
such other employees as may be necessary in their judgment, and fix
their compensation, all of whom shall do such work as the governing
boards shall direct, all of which shall be included as part of the
cost of construction and equipment thereof.
§18-23-14. Construction and operation of gymnasiums, etc.
The governing boards, within their discretion, are hereby
authorized to provide, construct, erect, improve, equip, maintain
and operate gymnasiums or stadia for athletic games, contests or exhibitions or physical training, dormitories, homes, refectories,
housing facilities, food service facilities and motor vehicle
parking facilities, swimming pools, or such other structures or
buildings, for students, teachers, officers and employees at the
various state institutions of higher education under their control
and management subject to the provisions and limitations of
sections thirteen, fifteen, sixteen, seventeen, eighteen, nineteen,
twenty, twenty-one, twenty-two, twenty-three and twenty-four of
this article.
§18-23-16. Cost of dormitories, housing facilities, food service
facilities and motor vehicle parking facilities to
be paid from proceeds of revenue bonds.
The governing boards may pay the cost as defined in sections
thirteen to twenty-four, inclusive, of this article, of any one or
more of such dormitories, homes or refectories housing facilities,
food service facilities and motor vehicle parking facilities out of
the proceeds of revenue bonds of the state. The governing boards
are authorized to issue revenue bonds of the state, by a resolution
of the board which shall recite an estimate by the board of such
cost, the principal and interest of which bonds shall be payable
solely from the special fund or funds herein provided for such
payment. The board, after any such issue of bonds or simultaneously
therewith, may issue further issues of bonds to pay the cost of any
other one or more of such dormitories, homes or refectories, housing facilities, food service facilities and motor vehicle
parking facilities in the manner and subject to all of the
provisions herein contained as to the bonds first mentioned in this
section. All such bonds shall have and are hereby declared to have
all the qualities of negotiable instruments under the Uniform
Commercial Code. Such bonds shall bear interest at such rates,
payable semiannually at such times, and shall mature in not more
than thirty years from their date or dates and may be made
redeemable at the option of the state, to be exercised by the
governing boards, at such price and under such terms and conditions
as they may fix prior to the issuance of such bonds. They shall
determine the form of such bonds including coupons to be attached
thereto to evidence the right of interest payments, and which bonds
shall be signed by the governor and the president of the
appropriate governing board, under the great seal of the state,
attested by the secretary of state. and the coupons attached
thereto shall bear the facsimile signature of the president of the
appropriate board In case any of the officers whose signatures
appear on the bonds or coupons shall cease to be such officers
before the delivery of such bonds, such signatures shall
nevertheless be valid and sufficient for all purposes the same as
if they had remained in office until such delivery. The governing
boards shall fix the denominations of such 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 said state, or, at
the option of the holder, at some bank or trust company in within
or outside of the city of New York state, to be named in the bonds,
either in lawful money or in gold coin of the United States of
America. of or equal to the then current standard of weight and
fineness, as may be determined by the governing boards Such bonds
and the interest thereon shall be exempt from taxation by the state
of West Virginia or any county, school district or municipality
therein. The governing boards may provide for the registration of
such bonds in the name of the owner as to principal alone and as to
both principal and interest under such terms and conditions as the
governing boards may determine, and shall sell such bonds in such
manner as they 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 dormitories, homes or
refectories housing facilities, food service facilities and motor
vehicle parking facilities.
The proceeds of such bonds shall be used solely for the
payment of the cost of such dormitories, homes or refectories
housing facilities, food service facilities and motor vehicle
parking facilities and costs of issuance of such bonds, which costs
shall be considered to include the cost of acquisition or construction thereof, the cost of all property, rights, easements
and franchises considered necessary or convenient therefor and for
the improvements determined upon as provided in this article;
interest upon bonds prior to and during construction or acquisition
and for a reasonable period after completion of construction or of
acquisition of the improvements; engineering, architectural and
legal expenses; expense for estimates of cost and of revenues;
expenses for plans, specifications and surveys; other expenses
necessary or incidental to determining the feasibility or
practicability of the improvements, and such other expenses as may
be necessary or incidental to the financing herein authorized and
the construction or acquisition of the improvements and the placing
thereof in operation. and shall be checked out by the president of
the appropriate governing board and the treasurer thereof and under
such further restrictions, if any, as the board may provide The
bonds shall be authorized and approved by resolution of the
appropriate governing board. If the proceeds of such bonds, by
error or otherwise, shall be less than the cost of such
dormitories, homes or refectories, housing facilities, food service
facilities and motor vehicle parking facilities, additional parity
bonds may in like manner be issued to provide the amount of such
deficit and, unless otherwise provided in the trust agreement
hereinafter mentioned, shall be deemed considered to be of the same
issue and shall be entitled to payment from the same fund, without preference or priority of the bonds first issued for the same
dormitory or dormitories, home or homes, or refectory or
refectories housing facilities, food service facilities and motor
vehicle parking facilities. If the proceeds of bonds issued for
any such dormitories, homes or refectories housing facilities, food
service facilities and motor vehicle parking facilities shall
exceed the cost thereof, the surplus shall be paid into the fund
hereinafter provided for payment of the principal and interest of
such bonds. Such fund may be used for the purchase of any of the
outstanding bonds payable from such fund at the market price, but
not exceeding the price, if any, at which such bonds shall in the
same year be redeemable, and all bonds redeemed or purchased shall
forthwith be cancelled and shall not again be issued.
Prior to the preparation of definitive bonds, the governing
boards may under like restrictions issue temporary bonds with or
without coupons, exchangeable for definitive bonds upon the
issuance of the latter. Such revenue bonds may be issued without
any other proceedings or the happening of any other conditions and
things than those proceedings, conditions and things which are
specified and required by this article or by the constitution of
the state.
§18-23-17. Agreements with trustees for bondholders.
The governing boards may enter into an agreement or agreements
with any trust company or with any bank having the trust powers, of a trust company either within or outside of the state, as trustee
for the holders of the bonds issued hereunder, setting forth
therein such duties of the state and of the governing boards in
respect of the acquisition, construction, erection, improvement,
maintenance, operation, repair and insurance of the dormitories,
homes or refectories, housing facilities, food service facilities
and motor vehicle parking facilities, the conservation and
application of all moneys, the insurance of moneys on hand or on
deposit, and the rights and remedies of the trustee and the holders
of the bonds, as may be agreed on with the original purchasers of
such bonds, and including therein provisions restricting the
individual right of action of bondholders as is customary in trust
agreements respecting bonds and debentures of corporations,
protecting and enforcing the rights and remedies of the trustee and
the bondholders, and providing for approval by the original
purchasers of the bonds, of the appointment of consulting engineers
and of the security given by those who contract to make
improvements, and by any bank or trust company in which the
proceeds of bonds or rents, fees or charges shall be deposited, and
for approval by the consulting engineers of all contracts for
improvements. All expenses incurred in carrying out such agreement
may be treated as a part of the cost of maintenance, operation and
repair of the dormitories, homes or refectories housing facilities,
food service facilities and motor vehicle parking facilities affected by the agreement. Any such agreement entered into by the
governing boards shall be binding in all respects on such governing
boards from time to time in accordance with its terms and all the
provisions thereof shall be enforceable by appropriate proceedings
at law or in equity, or otherwise.
§18-23-18. Operation and control of fiscal affairs of dormitories,
housing facilities, food service facilities and motor
vehicle parking facilities.
The governing boards shall properly maintain, repair, operate,
manage and control the fiscal affairs of such dormitories, homes or
refectories, housing facilities, food service facilities and motor
vehicle parking facilities, fix the rates of rents, fees or charges
and establish rules and regulations for the use and operation of
such dormitories, homes or refectories, housing facilities, food
service facilities and motor vehicle parking facilities for the
welfare of the students or teachers, and may make and enter into
all contracts or agreements necessary and incidental to the
performance of their duties and the execution of their powers under
this article.
§18-23-19. Payment of principal and interest of construction bonds
from revenues of dormitories, housing facilities,
food service facilities or motor vehicle parking
facilities; redemption of bonds.
Whenever bonds are issued for the construction, erection or equipment of dormitories, homes or refectories, housing facilities,
food service facilities or motor vehicle parking facilities, or for
the improvement or equipment of existing dormitories, homes or
refectories, housing facilities, food service facilities or motor
vehicle parking facilities, or for any or all of such purposes, as
joint or several projects, for which a single or several issues of
bonds may be issued within the discretion of the governing boards,
rents, fees and charges shall be fixed, charged and collected in
connection with the use or occupancy of, or service to be thereby
rendered and furnished by, dormitories, homes or refectories
housing facilities, food service facilities or motor vehicle
parking facilities of the particular state educational institution
as the governing board thereof shall determine, and shall be so
fixed or adjusted, as to provide a fund sufficient to pay the
principal and interest of each such issue of bonds and to provide
an additional fund to pay the cost of maintaining, repairing,
operating and insuring such dormitories, homes or refectories
housing facilities, food service facilities or motor vehicle
parking facilities. Whenever bonds are issued to finance the
construction and erection of dormitories, homes housing facilities
or motor vehicle parking facilities, together with additions or
extensions to an existing dormitory, home or refectory housing
facilities, food service facilities or motor vehicle parking
facilities for students or teachers at state educational institutions, either the combined gross revenues derivable from all
such dormitories, homes or refectories housing facilities, food
service facilities or motor vehicle parking facilities or the
separate gross revenues derivable from such dormitories, such
housing facilities, such food service facilities or such motor
vehicle parking facilities of the particular state educational
institution as the governing board thereof shall determine, may be
pledged to provide a fund sufficient to pay the principal and
interest of such issue of bonds and of any other bonds thereafter
issued for the same purpose, and to provide an additional fund to
pay the cost of maintaining, repairing, operating and insuring such
dormitories, homes or refectories housing facilities, food service
facilities or motor vehicle parking facilities. Except as may
otherwise be provided in the trust agreement authorized in section
seventeen of this article, the rents, fees and charges from the
dormitories, homes or refectories housing facilities, food service
facilities or motor vehicle parking facilities for which a single
issue of bonds is issued, except such part thereof as may be
necessary to pay such cost of maintaining, repairing, operating and
insuring during any period in which such cost is not otherwise
provided for (during which period the rents, fees and charges may
be reduced accordingly), in an amount sufficient to pay, when due,
the principal of, redemption premium, if any, and interest on such
bonds shall be transmitted each month to the municipal bond commission and by it placed in a special fund which is hereby
pledged to and charged with the payment of the principal of such
bonds and the interest thereon, and to the redemption or repurchase
of such bonds, such special fund to be a fund for all such bonds
without distinction or priority of one over another. The moneys in
such special fund, less a reserve for payment of interest, if not
used by the municipal bond commission, within a reasonable time for
the purchase of bonds for cancellation at a price not exceeding the
market price and not exceeding the redemption price, shall be
applied to the redemption by lot of any bonds which by their terms
are then redeemable, at the redemption price then applicable:
Provided,
That if said revenue bonds are sold to and purchased by
the United States of America or any federal or public agency or
department created under and by virtue of the laws of the United
States of America, then at the option of the United States of
America or such federal or public agency or department in lieu of
such moneys being transmitted to the municipal bond commission and
by it placed in a special fund, the rents, fees and charges from
such dormitories, homes or refectories, except such part thereof as
may be necessary to pay such cost of maintaining, repairing,
operating and insuring as provided aforesaid,
§18-23-20. When dormitories, housing facilities, food service
facilities and motor vehicle parking facilities
become property of state.
When the particular bonds for any dormitory or dormitories,
home or homes, refectory or refectories, housing facilities, food
service facilities or motor vehicle parking facilities, and the
interest on such bonds, shall have been paid, or a sufficient
amount has been provided for their payment and shall continue to be
held for that purpose, the said dormitories, homes or refectories
housing facilities, food service facilities or motor vehicle
parking facilities shall thereafter be exclusively the property of
the state of West Virginia, and thereafter the rents, fees and
charges collected for the use or occupancy of, or service rendered
and furnished by, such dormitories, homes or refectories housing
facilities, food service facilities or motor vehicle parking
facilities shall be paid into the state board of investments as
provided by the provisions of section two, article two, chapter
twelve of this code, as amended, and used and expended for the
benefit of the institution where collected: Provided,
That nothing
in this section precludes any governing board from pledging such rents, fees and charges to pay the principal and interest on any
bonds thereafter issued to construct new, or to improve existing
dormitories, homes or refectories housing facilities, food service
facilities or motor vehicle parking facilities pursuant to section
nineteen of this article. Such rents, fees and charges shall be
paid as may be provided in a trust agreement authorized pursuant to
section seventeen of this article, and in the absence of such trust
agreement, as provided in section nineteen of this article.
§18-23-21. State debt not to be incurred for dormitories, housing
facilities, food service facilities or motor vehicle
parking facilities; federal and private assistance;
provisions separable.
Nothing in these sections dealing with dormitories, homes or
refectories housing facilities, food service facilities or motor
vehicle parking facilities shall be so construed or interpreted as
to authorize or permit the incurring of state debt of any kind or
nature as contemplated by the constitution of this state in
relation to the state debt. The dormitories, homes or refectories
housing facilities, food service facilities or motor vehicle
parking facilities herein are of the character described as
self-liquidating projects under the laws of the United States this
state.
Any governing board authorized to issue bonds under the
provisions of this article is authorized and empowered to accept loans or grants or temporary advances for the purpose of paying
part or all of the cost of construction of the dormitories, homes
or refectories housing facilities, food service facilities or motor
vehicle parking facilities and the other purposes herein
authorized, from the United States of America or such federal or
public agency or department of the United States or any private
agency, corporation or individual, which temporary advances may be
repaid out of the proceeds of the bonds authorized to be issued
under the provisions of this article and to enter into the
necessary contracts and agreements to carry out the purposes hereof
with the United States of America or such federal or public agency
or department of the United States, or with any private agency,
corporation or individual. The provisions and parts of this
section are separable and are not matters of mutual essential
inducement, and it is the intention to confer the whole or any part
of the powers herein provided for, and if any of the sections or
provisions, or parts thereof, are for any reason illegal or
invalid, it is the intention that the remaining sections and
provisions or parts thereof shall remain in full force and effect.
§18-23-22. Sections regarded as supplementary.
Sections thirteen to twenty-four, inclusive, of this article,
shall be deemed to provide an additional and alternative method for
the doing of the things authorized hereby and shall be regarded as
supplementary and additional to powers conferred by other laws: Provided, however, That when any revenue bonds are issued hereunder
for the purposes provided by sections thirteen to twenty-four,
inclusive, of this article, for the benefit of any particular state
educational institution, no dormitories, homes or refectories
housing facilities, food service facilities or motor vehicle
parking facilities shall thereafter be constructed, built or
erected at such state educational institution until the appropriate
governing board shall, by investigating and hearing investigation
had thereon, under such rules as it may prescribe, determine that
there is an imperative public need for the construction, building
or erection of such dormitories, homes or refectories, housing
facilities, food service facilities or motor vehicle parking
facilities, and that their construction, building or erection and
subsequent maintenance or operation will not materially injure the
revenues of and from any dormitories, homes or refectories housing
facilities, food service facilities or motor vehicle parking
facilities constructed, built, erected, maintained or operated at
such state educational institution under the provisions of sections
thirteen to twenty-four, inclusive, of this article.
§18-23-23. Approval of dormitories, housing facilities, food
service facilities or motor vehicle parking
facilities.
It shall not be necessary to secure from any officer or board
not named in sections thirteen to twenty-four, inclusive, of this article, any approval or consent or any certificate or finding, or
to hold any election, or to take any proceedings whatever, either
for the acquisition, construction or erection of such dormitories,
homes or refectories, housing facilities, food service facilities
or motor vehicle parking facilities, or the improvement thereof, or
their maintenance, operation, repair or insurance, or for the
issuance of bonds hereunder, except such as are prescribed in the
sections herein named or are required by the constitution of the
state.
NOTE: The purpose of this bill is to authorize the governing
boards of higher education to build and operate housing, food
service and parking facilities for students and teachers.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.