Senate Bill No. 517

(By Senators Craigo, Oliverio, Helmick, Ross, Sharpe, Plymale and Unger)

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[Introduced March 19, 2001; referred to the Committee on Education; and then to the Committee on Finance.]

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A BILL to amend and reenact sections thirteen, 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, all relating to financing the construction of parking facilities at institutions of higher education.

Be it enacted by the Legislature of West Virginia:
That sections thirteen, 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, all 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, homes, motor vehicle parking facilities and refectories for teachers and students.

The governing boards are hereby authorized to may provide, construct, erect, improve, equip, maintain and operate dormitories, homes, motor vehicle parking facilities or refectories 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 must be solely by means of or with the proceeds of the revenue bonds hereinafter authorized by this article. The governing boards shall have power and authority to may employ engineering, architectural and construction experts, and such other employees as may be they determine necessary in their judgment, and fix their compensation, all of whom shall do such the work as directed by the governing boards shall direct all of which shall be and which is included as part of the cost of construction and equipment. thereof.
§18-23-16. Cost of dormitories, homes, motor vehicle parking facilities and refectories to be paid from proceeds of revenue bonds.

(a) 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 the dormitories, homes, motor vehicle parking facilities or refectories out of the proceeds of revenue bonds of the state. The governing boards are authorized to may issue revenue bonds of the state, by a resolution of the board which shall must recite an estimate by the board of such the cost, the principal and interest of which bonds shall be payable solely from the special fund herein provided for such the payment. The board, after any such issue of bonds or simultaneously therewith with the issue of bonds, may issue further issues of bonds to pay the cost of any other one or more of such the dormitories, homes, motor vehicle parking facilities or refectories, 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 The bonds shall bear interest, payable semiannually, and shall mature in not more than thirty forty 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 a price and under such terms and conditions as they may fix prior to the issuance of such the bonds. They shall determine the form of such the bonds, including coupons to be attached thereto to the bonds to evidence the right of interest payments, which the 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 to the bonds shall bear the facsimile signature of the president of the appropriate board. In case If any of the officers whose signatures appear on the bonds or coupons 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 delivery. The governing boards 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 said this state, or, at the option of the holder, at some bank or trust company in the city of New York within or outside this 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 The bonds shall be are exempt from taxation by the state of West Virginia or any county, school district or municipality therein of the state. The governing boards may provide for the registration of such the bonds in the name of the owner as to principal alone and as to both principal and interest under such terms and conditions as determined by the governing boards may determine, and shall sell such the bonds in such a 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, motor vehicle parking facilities or refectories.
(b) The proceeds of such the bonds shall must be used solely for the payment of the cost of such the dormitories, homes, motor vehicle parking facilities or refectories, and shall be checked out by the president of the appropriate governing board and the its treasurer thereof and under such further restrictions, if any, as provided by the board. may provide. If the proceeds of such the bonds, by error or otherwise, shall be are less than the cost of such the dormitories, homes, motor vehicle parking facilities or refectories, additional bonds may in like manner be issued to provide the amount of such the 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, motor vehicle parking facilities, or refectory or refectories. If the proceeds of bonds issued for any such dormitories, homes, motor vehicle parking facilities or refectories shall exceed the cost thereof of those facilities, the surplus shall be paid into the fund hereinafter provided described in section nineteen 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 not exceeding the price, if any, at which such the bonds shall in the same year be redeemable, and all bonds redeemed or purchased shall forthwith immediately be cancelled and shall may not again be issued.
(c) 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 definitive bonds. Such The 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 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 in the agreement or agreements 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, motor vehicle parking facilities or refectories, 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 that are agreed on with the original purchasers of such the bonds, and including therein in the agreement or agreements 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 are deposited, and for approval by the consulting engineers of all contracts for improvements. All expenses incurred in carrying out such this agreement may be treated as a part of the cost of maintenance, operation and repair of the dormitories, homes, motor vehicle parking facilities or refectories affected by the agreement. Any such An agreement entered into by the governing boards shall be is binding in all respects on such the governing boards from time to time in accordance with its terms and all the provisions thereof shall be of the agreement are enforceable by appropriate proceedings at law or in equity. or otherwise.
§18-23-18. Operation and control of fiscal affairs of dormitories, homes, motor vehicle parking facilities or refectories.

The governing boards shall properly maintain, repair, operate, manage and control the fiscal affairs of such the dormitories, homes, motor vehicle parking facilities or refectories, fix the rates of rents, fees or charges and establish rules and regulations for the use and operation of such the dormitories, homes, motor vehicle parking facilities or refectories, 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, homes, and refectories; redemption of bonds.

Whenever bonds are issued for the construction, erection or equipment of dormitories, homes, motor vehicle parking facilities or refectories, or for the improvement or equipment of existing dormitories, homes, motor vehicle parking facilities or refectories, or for any or all of such those 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, motor vehicle parking facilities or refectories of the particular state educational institution as the governing board thereof shall determine determines, 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 the dormitories, homes, motor vehicle parking facilities or refectories. Whenever bonds are issued to finance the construction and erection of dormitories, homes, motor vehicle parking facilities or refectories, together with additions or extensions to an existing dormitory, home, motor vehicle parking facilities or refectory for students or teachers at state educational institutions, the revenues derivable from all such those dormitories, homes, motor vehicle parking facilities or refectories of the particular state educational institution as the governing board thereof shall determine determines, may be pledged to provide a fund sufficient to pay the principal and interest of such the 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 the dormitories, homes, motor vehicle parking facilities or refectories. 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, motor vehicle parking facilities or refectories for which a single issue of bonds is issued, except such that part thereof as may be necessary to pay such the cost of maintaining, repairing, operating and insuring during any period in which such the cost is not otherwise provided for (during which period the rents, fees and charges may be reduced accordingly), 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 the bonds and the interest thereon on the bonds, and to the redemption or repurchase of such the bonds. such The special fund to shall be a fund for all such bonds without distinction or priority of one over another. The moneys in such the 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 the 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 the moneys being transmitted to the municipal bond commission and by it placed in a special fund, the rents, fees and charges from such the dormitories, homes, motor vehicle parking facilities or refectories, except such that part thereof as may be necessary to pay such the cost of maintaining, repairing, operating and insuring as provided aforesaid, may be transmitted and paid to a trustee designated and named by the United States of America or such federal or public agency or department in its agreement and contract with the appropriate governing board, for the payment of the principal of such the bonds and the interest thereon on the bonds, under such terms and conditions as may be that are agreed upon.
§18-23-20. When dormitories, homes, motor vehicle parking facilities or refectories become property of state.

When the particular bonds for any dormitory or dormitories, home or homes, motor vehicle parking facilities, refectory or refectories, and the interest on such the 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, motor vehicle parking facilities or refectories shall thereafter be are 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 the dormitories, homes, motor vehicle parking facilities or refectories 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 the rents, fees and charges to pay the principal and interest on any bonds thereafter issued to construct new, or to improve existing dormitories, homes, motor vehicle parking facilities or refectories pursuant to section nineteen of this article. Such The 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 a trust agreement, as provided in section nineteen of this article.
§18-23-21. State debt not to be incurred for dormitories, homes, motor vehicle parking facilities or refectories; federal and private assistance; provisions separable.

Nothing in these sections dealing with dormitories, homes, motor vehicle parking facilities or refectories shall may 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, motor vehicle parking facilities or refectories herein are of the character described as self-liquidating projects under the laws of the United States.
Any governing board authorized to issue bonds under the provisions of this article is authorized and empowered to may accept loans or grants or temporary advances for the purpose of paying part or all of the cost of construction of the dormitories, homes, motor vehicle parking facilities or refectories and the other purposes herein authorized by this article, 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 of this article 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 are considered 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, That when any revenue bonds are issued hereunder under the provisions of this article 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, motor vehicle parking facilities or refectories shall may thereafter be constructed, built or erected at such the state educational institution until the appropriate governing board shall, by investigating and hearing had thereon on the investigation, under such rules as it may prescribe it prescribes, determine determines that there is an imperative public need for the construction, building or erection of such the dormitories, homes, motor vehicle parking facilities or refectories, and that their construction, building or erection and subsequent maintenance or operation will not materially injure the revenues of and from any dormitories, homes, motor vehicle parking facilities or refectories constructed, built, erected, maintained or operated at such the state educational institution under the provisions of sections thirteen to twenty-four, inclusive, of this article.
§18-23-23. Approval of dormitories, homes, motor vehicle parking facilities or refectories.

It shall not be is not 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, motor vehicle parking facilities or refectories, or the improvement thereof of those facilities, or their maintenance, operation, repair or insurance, or for the issuance of bonds hereunder, except such as are those prescribed in the sections herein named in this section or that are required by the constitution of the state.


NOTE: The purpose of this bill is to authorize financing of parking facilities constructed at institutions of higher education.

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