H. B. 4711


(By Mr. Speaker, Mr. Kiss, and
Delegates Staton and Varner)
[Introduced February 27, 2004; referred to the
Committee on Government Organization then Finance.]



A BILL to repeal §5B-2-8, §5B-2-9, §5B-2-l0, §5B-2-11 and §5B-2-12a of the code of West Virginia, 1931, as amended; to amend and reenact §5B-2-12 of said code ; and to amend said code by adding thereto a new article, designated §5B-7-1, §5B-7-2, §5B-7-3, §5B-7-4, §5B-7-5, §5B-7-6, §5B-7-7, §5B-7-8, §5B-7-9, §5B-7-10, §5B-7-11, §5B-7-12, §5B-7-13, §5B-7-14, §5B-7-15, §5B-7-16, §5B-7-17, §5B-7-18, §5B-7-19, §5B-7-20, §5B-7-21, §5B-7-22 and §5B-7-23, all relating generally to creating a West Virginia tourism authority; providing for duties and powers; abolishing the tourism commission and the office of the tourism commissioner; transferring assets, liabilities and personnel to the new authority; providing for authority to issue tourism development bonds; and providing for uses and expenditures of moneys coming into the tourism promotion fund.

Be it enacted by the Legislature of West Virginia:
That §5B-2-8, §5B-2-9, §5B-2-10, §5B-2-11 and §5B-2-12a
of the code of West Virginia, 1931, as amended, be repealed; that §5B-2-12 of said code be amended and reenacted; and that said code be amended by adding thereto a new article, designated §5B-7-1, §5B-7-2, §5B-7-3, §5B-7-4, §5B-7-5, §5B-7-6, §5B-7-7, §5B-7-8, §5B-7-9, §5B-7-10, §5B-7-11, §5B-7-12, §5B-7-13, §5B-7-14, §5B-7-15, §5B-7-16, §5B-7-17, §5B-7-18, §5B-7-19, §5B-7-20, §5B-7-21, §5B-7-22 and §5B-7-23, all to read as follows:
ARTICLE 2. WEST VIRGINIA DEVELOPMENT OFFICE.
§5B-2-12. Tourism promotion fund created; use of funds.
There is hereby continued in the state treasury the special revenue fund known as the "tourism promotion fund" created under prior enactment of section nine, article one of this chapter. All moneys which come into this fund shall be used in accordance with the provisions of article seven of this chapter.
(a) A minimum of five percent of the moneys deposited in the fund each year shall be used solely for direct advertising for West Virginia travel and tourism: Provided, That no less than twenty percent of these funds be expended with the approval of the director of the division of natural resources to effectively promote and market the state's parks, state forests, state recreation areas and wildlife recreational resources. Direct advertising means advertising which is limited to television, radio, mailings, newspaper, magazines and outdoor billboards, or any combination thereof;
(b) The balance of the moneys deposited in the fund shall be used for direct advertising within the state's travel regions as defined by the commission. The funds shall be made available to these districts beginning the first day of July, one thousand nine hundred ninety-five, according to legislative rules promulgated by the tourism commission: Provided, That emergency rules for the distribution of funds for the fiscal year ending the thirtieth day of June, one thousand nine hundred ninety-six, are specifically authorized; and
(c) All advertising expenditures over twenty-five thousand dollars from the tourism promotion fund require prior approval by recorded vote of the commission.
ARTICLE 7. WEST VIRGINIA TOURISM AUTHORITY ACT.
§5B-7-1. Short title.
This article shall be known and may be cited as the "West Virginia Tourism Authority Act."
§5B-7-2. Declaration of legislative findings and public purpose.
The Legislature finds and declares that:
(a) There are numerous existing tourist attractions as well as the potential for development of many new tourist attractions in all of the geographic regions of this state. These tourist attractions include existing and potential facilities and locations for cultural, historical, educational, recreational and entertainment activities and present and future tourism facilities and locations have the potential of attracting millions of visitors both from within and from outside this state; and
(b) The aggressive promotion of tourism and the development of new tourism facilities, activities and locations in this state are necessary to increase the prosperity of the people of this state; and to obtain that result, it is necessary to create a single public authority with all of the powers and duties necessary for implementing a coordinated and effective tourism promotion and development program; and
(c) The most effective way to realize results from a comprehensive and coordinated tourism promotion and development program is to place responsibility for these activities in a single public authority having the specialized professional staff and resources needed to promote, advertise, and market the state?s many tourist attractions; to coordinate other private and public efforts to promote, advertise and market tourist facilities; and to provide the tools needed to finance and develop new tourism facilities in this state; and
(d) The creation of the tourism authority for this purpose as provided in this article is in the public interest, serves an important public purpose and will promote the health, safety, welfare, prosperity of the people of this state.
§5B-7-3. Tourism authority created; members, appointment and expenses, officers and by-laws.

(a) There is hereby created the West Virginia tourism authority, a body corporate and politic, constituting a public corporation and government instrumentality. The governing board of the authority shall direct the exercise of all the powers given to the authority in this article and shall be comprised of the following fourteen members:
(1) Nine members to be appointed by the governor, with the advice and consent of the Senate, representing participants in the state?s tourism industry. At least seven of the members shall be directly employed in this state?s private sector tourism industry and shall have knowledge and experience in the development, promotion or operation of tourism facilities. Of the nine members so appointed, one shall represent a convention and visitors? bureau, and one shall be a member of a convention and visitors bureau. A member who qualifies at the time of appointment may serve out his or her term even though there is a change in the member?s qualification status during the term. Of the nine members so appointed, no more than three shall be from any one congressional district within the state and the appointments shall provide the broadest feasible geographic distribution of members;
(2) One member of the council for community and economic development created pursuant to the provisions of section two, article five-b of this chapter, as designated by the governor;
(3) One member to be appointed by the governor to represent county or municipal public sector participants in the tourism industry within the state;
(4) The secretary of transportation or his or her designee, ex officio;
(5) The director of the division of natural resources or his or her designee, ex officio; and
(6) The secretary of tax and revenue or his or her designee, ex officio.
(b) The members appointed by the governor shall serve staggered terms of four years duration. The existing members of the tourism commission, pursuant to the prior provisions of section eight, article five-b of this chapter, as of the effective date of this article, shall continue to serve until their terms expire or their seats otherwise become vacant. Any member whose term has expired shall serve until his or her successor has been appointed. Any person appointed to fill a vacancy shall serve only for the unexpired term. A member is eligible for reappointment. In cases of vacancy in the office of a member, that vacancy shall be filled by the governor in the same manner as the original appointment.
(c) Members of the authority shall not be entitled to compensation for services performed as members, but shall be entitled to reimbursement for all reasonable and necessary expenses actually incurred in the performance of their duties, including a per diem expense payment for up to five days per calendar month spent in the performance of authority business which shall be the same per diem amount as is authorized for members of the Legislature from time to time.
(d) A majority of these members shall constitute a quorum for the purpose of conducting business. The governor shall appoint a chairperson of the commission for a term to run concurrent with the term of the office of the member appointed to be the chairperson. The chairperson is eligible for successive terms in that position.
(e) The board of the authority shall manage the property and business of the authority and may prescribe, amend, adopt and repeal bylaws and rules governing the manner in which the business of the authority is conducted. The secretary of the board shall keep a record of the proceedings of the board and perform such other duties as may be determined appropriate by the board. The treasurer shall be custodian of all funds of the authority and shall be bonded in such amount as other members of the board may require.
(f) The members of the authority and of any committee created by the authority to evaluate applications for advertising or other grants or loans from the authority shall recuse themselves, and not participate in the discussion of any project in which the person has a direct financial interest.
§5B-7-4. Appointment and duties of executive director.
The governor shall appoint an executive director of the authority, who shall serve as president and chief executive officer of the authority. The executive director shall report to, but not be a member of, the board. The governor shall set the salary and other compensation of the executive director, and shall approve any changes in the executive director?s salary or compensation. The executive director shall administer, manage and direct the affairs and activities of the authority in accordance with the policies and under the control and direction of the board. He or she shall attend meetings of the board, shall keep a record of the proceedings of the board and shall maintain and be custodian of all books, documents and papers of the authority, the minute book of the authority and its official seal. He or she shall also perform other duties as instructed by the board in carrying out the purposes of this article. The executive director shall employ or retain such agents or employees as may be necessary to fulfill the duties of the authority, subject to the board?s approval. Employees of the authority, including the executive director, are eligible for membership in the West Virginia retirement system and participation in all of the health and related insurance and other benefits available to state employees as provided by law.
§5B-7-5. West Virginia tourism commission and office of tourism commissioner abolished; West Virginia tourism authority as successor.

The authority shall be the corporate successor to the West Virginia tourism commission and the office of tourism commissioner and is hereby vested with all right, title and interest of the commission and office in and to all property, rights and chooses in action heretofore owned by or vested in those entities, and shall assume all debts, liabilities and other obligations, if any, of the abolished entities. As of the effective date of this article, all rights and interests heretofore vested in those entities shall be vested in the authority. Any references elsewhere in this code to "tourism commission" or the office of "tourism commissioner" shall, from and after the effective date of this section, mean the authority.
The unexpended balance of funds appropriated for the abolished entities as of the effective date of this article is hereby transferred to the authority. All existing personnel of the abolished entities are personnel of the authority upon the effective date of this article.
§5B-7-6. Definitions.
Unless the context clearly indicates otherwise, as used in this article:
(a) "Authority" means the West Virginia tourism authority;
(b) "Board" means the governing body of the authority;
(c) "Bonds" means bonds or other debt instruments of the authority issued under this article, whether the interest thereon is taxable or tax-exempt for federal income tax purposes;
(d)"Costs of establishing a tourism project" means the cost of acquiring existing facilities, cost of machinery, cost of equipment and fixtures, the cost of construction, including without limitation, cost of improvements, repairs and renovations, costs of all lands, water areas, property rights and easements, financing charges, interest prior to and during construction, cost of architectural, engineering, legal and financial or other consulting services, plans, site assessments, site remediation costs, specifications and surveys, estimates of costs and any other expenses necessary or incident to determining the feasibility or practicability of any project, together with such other costs and expenses as may be necessary or incidental to the financing and the construction or acquisition of the project and the placing of the same in operation;
(e) "County" means any county of this state;
(f)"Enterprise" means an entity which is or proposes to be engaged in this state in any business activity for profit. The entity may be owned, operated, controlled or under the management of a person, partnership, corporation, trust, community-based development organization or council, local commerce group, employee stock ownership plan, pension or profit-sharing plan, a group of participating employees who desire to own an entity which does not presently exist, or any similar entity or organization;
(g) "Federal agency" means the United States of America and any department, corporation, agency or instrumentality created, designated or established by the United States of America;
(h) "Financing plan" means a plan designed to meet the financing needs of an enterprise;
(i) "Government" means state and federal government, and any political subdivision, agency or instrumentality thereof, corporate or otherwise;
(j) "Loan" means an extension of financing by the authority to a local government or an enterprise, including, but not limited to, a loan, a lease or an installment sale;
(k) "Municipality" means any city or town in this state;
(1) "Notes" means any notes, including commercial
paper, of the authority issued under this article whether the interest thereon is taxable or tax-exempt for federal income tax purposes;
(m) "Project" means a tourism facility development and all of the assets reasonably and necessarily required therefor, all as determined by the authority, which determination shall be conclusive;
(n) "Revenues" means all fees, premiums, charges, moneys, profits, payment or principal of or interest on, loans and other investments, gifts, grants, appropriations, contributions and all other income derived or to be derived by the authority under this article; and
(o) "Security interest" means an interest in the loan portfolio of the authority which interest is secured by an underlying loan or loans and is evidenced by a note issued by the authority.
§5B-7-7. General powers of the authority.
The authority, as a public corporation and governmental instrumentality exercising public powers of the state, shall have and may exercise all powers necessary or appropriate to carry out the purposes of this article, including the power to:
(a) Have an official seal and alter its official seal at will;
(b) Maintain an office or offices at any place within this state that it designates;
(c) Make and execute contracts and all other instruments and agreements necessary or convenient for the performance of its duties and the exercise of its powers and functions under this article;
(d) Acquire real or personal property, or any interest therein, by purchase, exchange, gift, assignment, transfer, foreclosure, lease or otherwise, including rights or easements, and hold, manage, operate or improve such property. Title to all property, property rights and interests acquired by the authority shall be taken in the name of the authority.
(e) Sue and be sued in its name;
(f) Sell, license, lease, mortgage, assign, pledge or donate its property, both real and personal, or any right or interest therein to another or authorize the possession, occupancy or use of such property or any right or interest therein by another, in such manner and upon such terms as it deems appropriate.
(g) Appoint officers, agents and employees and to contract for and engage the services of consultants.
(h) Procure insurance, in amounts and from insurers of its choice, or provide self-insurance, against any loss, cost, or expense in connection with its property, assets or activities, including insurance or self-insurance against liability for its acts or the acts of its directors employees or agents and for the indemnification of the members of its board and its employees and agents;
(i) Receive and accept from any source aid, grants and contributions of money, property, labor or other things of value to be held, used and applied to carry out the purposes of this article subject to the conditions upon which the aid, grants or contributions are made;
(j) Enter into agreements with any department, agency or instrumentality of the United States, this state, or any other state for purposes consistent with this article;
(k) Contract for the provision of legal services by private counsel, and notwithstanding the provisions of article three, chapter five, such counsel may, but is not limited to, represent the authority in court, negotiate contracts and other agreements on behalf of the authority, render advice to the authority on any matter relating thereto, prepare contracts and other agreements, and provide such other legal services as may be requested by the authority; and
(l) Exercise all of the powers which a corporation may lawfully exercise under the laws of this state.
(m) Do any act necessary or convenient to the exercise of the powers granted or reasonably implied by this article and not otherwise inconsistent with state law.
§5B-7-8. Sources and uses of funds.
The tourism promotion fund created in section twelve, article five-b of this chapter shall be the primary operating account for the authority. The tourism promotion fund shall be divided into two separate subaccounts as follows:
(a) The authority operations subaccount shall expend no less than eight million dollars per year and no more than one third of the funds coming into the tourism promotion fund annually for administration of the authority and for all costs of tourism promotion and advertising for those activities provided in section nine of this article: Provided, That a minimum of five percent of the moneys deposited in the tourism promotion fund and used for advertising, promotion and marketing each year shall be used solely for direct advertising for West Virginia travel and tourism: Provided, however, That no less than twenty percent of these funds be expended with the approval of the director of the division of natural resources to effectively promote and market the state?s parks, state forests, state recreation areas and wildlife recreational resources.
(b) The balance of the moneys deposited in the tourism promotion fund annually shall be allocated to the direct advertising matching grant subaccount and shall be used for direct advertising within the state?s travel regions as defined by the authority. The funds shall be made available to these districts, according to legislative rules heretofore promulgated by the former tourism commission, which rules shall continue in effect after the effective date of this article unless those rules shall be amended by the authority in accordance with the provisions of chapter twenty nine-a of this code.
(c) Direct advertising means advertising which is limited to television, radio, mailings, newspaper, magazines and outdoor billboards, or any combination thereof. All advertising expenditures over twenty-five thousand dollars from the tourism promotion fund require prior approval by recorded vote of the authority.
S5B-7-9. Specific powers and duties of the authority related to tourism promotion.

The authority shall also have the following powers and duties related to promotion of tourism in this state:
(a) The authority shall develop a comprehensive tourism promotion and development strategy for West Virginia. "Comprehensive tourism promotion and development strategy" means a plan that outlines strategies and activities designed to continue, diversify or expand the tourism base of the state as a whole; create tourism jobs; develop a highly skilled tourism work force; facilitate business access to capital for tourism; advertise and market the resources offered by the state with respect to tourism promotion and development; facilitate cooperation among local, regional and private tourism enterprises; improve infrastructure on a state, regional and community level in order to facilitate tourism development; improve the tourism business climate generally; and leverage funding from sources other than the state, including local, federal and private sources. In developing its strategies, the authority shall consider the following:
(1) Improvement and expansion of existing tourism marketing and promotion activities;
(2) Promotion of cooperation among municipalities, counties, and the West Virginia infrastructure and jobs development council in funding physical infrastructure to enhance the potential for tourism development.
(b) The authority shall purchase advertising time or space in or upon any medium generally engaged or employed for said purpose to advertise and market the resources of the state or to inform the public at large or any specifically targeted group or industry about the benefits of living in, investing in, producing in, buying from, contracting with, or in any other way related to, the state of West Virginia or any business, industry, agency, institution or other entity therein: Provided, That of any funds appropriated and allocated for purposes of advertising and marketing expenses for the promotion and development of tourism, not less than twenty percent of the funds shall be expended with the approval of the director of the division of natural resources to advertise, promote and market state parks, state forests, state recreation areas and wildlife recreational resources;
(c) The authority shall promote and disseminate information related to the attractions of the state through the operation of the state?s telemarketing initiative, which telemarketing initiative shall include a centralized reservation and information system for state parks and recreational facilities;
(d) The authority shall take such additional actions as may be necessary to carry out the duties and programs described in this section.
(e) The authority shall submit a report annually to the council for community and economic development about the development of the tourism industry in the state and the necessary funding required by the state to continue the development of the tourism industry.
(f) The authority shall coordinate with the executive director of the West Virginia development office who shall assist the authority in the performance of its powers and duties and the executive director is hereby authorized to provide assistance in employing necessary personnel, contracting with professional or technical experts or consultants and purchasing or contracting for the necessary equipment or supplies.
(g) The authority shall promulgate legislative rules pursuant to the provisions of chapter twenty-nine-a of this code to carry out its purposes and programs, to include generally the programs available, the procedure and eligibility of applications relating to assistance under such programs and the staff structure necessary to support such programs, which structure shall include the qualifications for a professional staff person qualified by reason of exceptional training and experience in the field of advertising to supervise the advertising and promotion functions of the commission, and shall further include provision for the management of West Virginia welcome centers. The authority is further authorized to promulgate procedure rules pursuit to said chapter to include instructions and forms for applications relating to assistance.
(h) The authority shall cooperate with other state and local governmental agencies in efforts to promote and develop tourist activity in this state.
(i) The authority shall issue periodicals and carry and charge for advertising therein.
(j) The authority shall encourage, stimulate, and support the film industry in this state.
(k) The authority shall make grants to local governments for tourism projects with any funds of the authority available for this purpose.
(1) The authority shall organize, conduct, sponsor, and participate inspecial institutes, conferences, demonstrations and studies relating to the promotion and development of tourism resources in this state.
§5B-7-10. Specific powers and duties of the authority related to development of tourism facilities.

In addition to the powers and duties provided above, the authority shall also have the following powers and duties related to development and financing of tourism facilities in this state:
(a) To establish an account for the purpose of financing tourism facility projects;
(b) To determine, upon the proper application from an enterprise, whether the declared public purposes of this article will be accomplished through the development by the enterprise of a proposed tourism project in this state;
(c) To finance tourism projects by making loans to public agencies or enterprises upon such terms as the authority shall deem appropriate;
(d) To issue revenue bonds or notes to fulfill the purposes of this article, and to secure the payment of such bonds or notes;
(e) To borrow money for its purposes and issue bonds or notes for the money and provide for the rights of the holders of the bonds or notes or other negotiable instruments, to secure the bonds or notes by a deed of trust on, or an assignment or pledge of, any or all of its property and property of the tourism project, including any part of the security for loans, and the authority may issue and sell its bonds and notes, by public or private sale, in such principal amounts as it shall deem necessary to provide funds for any purposes under this article, including the making of loans for the purposes set forth in this article;
(f) To maintain such sinking funds and reserves as the board shall determine appropriate for the purposes of meeting future monetary obligations and needs of the authority;
(g) To take title by conveyance or foreclosure to any tourism project where acquisition is necessary to protect any loan previously made by the authority and to sell, by public or private sale, transfer, lease or convey such project to any enterprise;
(h) To participate in any reorganization proceeding pending pursuant to the United States Code (being the act of Congress establishing a uniform system of bankruptcy throughout the United States, as amended) or in any receivership proceeding in a state or federal court for the reorganization or liquidation of an enterprise. The authority may file its claim against any such enterprise in any of the foregoing proceedings, vote upon any questions pending therein which requires the approval of the creditors participating in any reorganization proceeding or receivership, exchange any evidence of such indebtedness for any property, security or evidence of indebtedness offered as a part of the reorganization of such enterprise or of any other entity formed to acquire the assets thereof and may compromise or reduce the amount of any indebtedness owing to it as a part of any such reorganization;
(i) To acquire, construct, maintain, improve, repair, replace and operate tourism projects within this state;
(j)To issue renewal notes, or security interests, to issue bonds to pay notes or security interests and, whenever it deems refunding expedient, to refund any bonds or notes by the issuance of new bonds or notes, whether the bonds or notes to be refunded have or have not matured and whether or not the authority originally issued the bonds or notes to be refunded;
(k) To apply the proceeds from the sale of renewal notes, security interests or refunding bonds or notes to the purchase, redemption or payment of the notes, security interests or bonds or notes to be refunded;
(l) To the extent permitted under its contracts with the holders of bonds, security interests or notes of the authority, to consent to any modification of the rate of interest, time of payment of any installment of principal or interest, security or any other term of any bond, security interests, note or contract or agreement of any kind towhich theauthorityis aparty;
(m) To sell loans, security interests or other obligations in the loan portfolio of the authority. Such security interests shall be evidenced by instruments issued by the authority. Proceeds from the sale of loans, security interests, or other obligations may be used in the same manner and for the same purposes as bond and note revenues;
(n) To exercise such other and additional powers as may be necessary or appropriate for the exercise of the powers herein conferred.
§5B-7-11. Loans to governmental agencies or enterprises for tourism projects.

(a) When it has determined upon application of a governmental agency or an enterprise that the establishment or acquisition of a particular tourism project will accomplish the public purposes of this article, the authority may contract to loan such agency or enterprise up to one hundred percent of the estimated cost of such project from any or all of the following sources:
(1) The proceeds of bonds or notes issued by the authority pursuant to this article; or
(2) Moneys in the revolving loan subaccount available to make loans.
(b) Loans made under subsection (a) of this section shall be subject to the following conditions:
(1) If the authority is providing less than one hundred percent financing for the project, the authority shall determine that other sources of funds will be available to complete the project;
(2 The loan shall contain such terms and conditions as the authority deems appropriate, which terms and conditions shall be set forth in a resolution adopted by the board in accordance with the provisions of section ten of this article;
(3) The authority may, in its discretion, include within the terms of a loan minimum project operating periods, liquidated damage provisions for cessation of operations prior to the end of the loan period, loan acceleration provisions, project equipment purchase options in the event of early closure and other provisions to protect the jobs intended to be created by the project;
(4) The governmental agency or enterprise shall pay such loan fees as may be prescribed by the authority from time to time pursuant to the provisions of this article.
§5B-7-12. Bonds and notes issued pursuant to this article.
(a) The authority may issue its bonds or notes to fulfill the purposes set forth in this article.
(b) The authority may issue renewal notes to pay notes and, if it considers refunding expedient, may refund or refund in advance, bonds or notes, whether or not originally issued by the authority, by the issuance of new bonds or notes.
(c) Except as may otherwise be expressly provided by the authority, every issue of its notes or bonds shall be special obligations of the authority, payable solely from the property, revenues or other sources of or available to the authority pledged therefor.
(d) The bonds and the notes shall be authorized by the authority, and shall be secured, be in such denominations, may bear interest at such rate or rates, be in such form, either coupon or registered, carry such registration privileges, be payable in such medium of payment and at such place or places and such time or times and be subject to such terms of redemption as the authority may authorize. The bonds and notes of the authority may be sold by the authority, at public or private sale, at or not less than the price the authority determines. The bonds and notes shall be executed by manual or facsimile signature by the chairman of the board, and the official seal of the authority or a facsimile thereof shall be affixed to or printed on each bond and note and attested, manually or by facsimile signature, by the secretary of the board, and any coupons attached to any bond or note shall bear the manual or facsimile signature of the chairman of the board. In case any officer whose signature, or a facsimile of whose signature, appears on any bonds, notes or coupons ceases to be such officer before delivery of such bonds or notes, such signature or facsimile is nevertheless sufficient for all purposes the same as if he or she had remained in office until such delivery; and, in case the seal of the authority has been changed after a facsimile has been imprinted on such bonds or notes, such facsimile seal will continue to be sufficient for all purposes.
§5B-7-13. Approval by authority.
(a) To implement the powers and authority conferred upon it by this article related to making loans, the board of the authority may adopt a resolution pursuant to which it shall:
(1) Specify and describe the project it intends to finance;
(2) Generally describe the public purpose to be served and the financing transaction to be accomplished under this article;
(3) Specify the maximum principal amount of any bonds or notes to be issued by the authority, the maximum principal amount of the loan, and the amount of insurance, if any, to be provided by the authority; and
(4) Impose any terms or conditions on the issuance of notes or bonds, the making of a loan or the provision of insurance that the authority deems appropriate.
(b) The authority may, by resolution, or may delegate to the executive director or other designee the authority to, specify, prescribe, determine, provide for and approve such matters, details, forms, documents or procedures as the authority deems appropriate to the making of a loan, the authorization, sale, issuance, security, delivery or payment of or for bonds or notes, or the authority?s insurance of bonds, notes, loans or other instruments, including, without limitation, the rate or rates of interest and any security for the loan or insurance.
(c) The resolution adopted pursuant to this section is administrative in nature, is not subject to procedures required for legislative acts, and is not subject to referendum.
(d) In any suit, action, or proceeding involving the validity or enforceability of any bonds or notes issued, loan made, or insurance extended by the authority under this article or any security therefor, any finding by the authority as to the public purpose of any actions taken under this article and the appropriateness of those actions to serve the public purpose shall be conclusive.
(e) Any resolution authorizing the issuance of bonds or notes shall provide that such bonds or notes shall contain a recital that they are issued pursuant to this article, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.
§5B-7-14. Trustee for bondholders; contents of trust agreement; pledge or assignment of revenues.

For bonds or notes issued pursuant to the provisions of this article, in the discretion of the authority, any bonds or notes, including refunding bonds or notes issued by the authority, may be secured by a trust agreement between the authority and a corporate trustee, which trustee may be any bank or trust company within or without the state. Any such trust agreement may contain such binding covenants with the holders of such bonds or notes as to any matter or provisions as are deemed necessary or advisable to the authority to enhance the marketability and security of such bonds or notes and may also contain such other provisions with respect thereto as the authority may authorize and approve. Any resolution adopted by the authority or any trust agreement may contain a pledge or assignment of a revenues to be received in connection with the financing.
§5B-7-15. Obligations of authority undertaken pursuant to this article not debt of state, county, municipality or any political subdivision.

Bonds and notes, including refunding bonds and notes, issued under the authority of this article and any coupons in connection therewith, and any other obligations undertaken by the authority pursuant to this article, shall not constitute a debt or a pledge of the faith and credit or taxing power of this state or of any county, municipality or any other political subdivision of this state, and the holders and owners thereof shall have no right to have taxes levied by the Legislature or the taxing authority of any county, municipality or any other political subdivision of this state for the payment of the principal thereof or interest thereon, but such bonds, notes and other obligations shall be payable solely from revenues and funds pledged for their payment as authorized by this article unless the notes are issued in anticipation of the issuance of bonds or the notes are refunded by refunding bonds issued under the authority of this article, which bonds or refunding bonds shall be payable solely from revenues and funds pledged for their payment as authorized by this article. All such bonds and notes, and all documents evidencing any other obligation, shall contain on the face thereof a statement to the effect that the bonds, notes or such other obligation as to both principal and interest, are not debts of the state or any county, municipality or political subdivision thereof, but are payable solely from revenues and funds pledged for their payment.
§5B-7-l6. Bonds and notes issued pursuant to this article; legal investments.

The provisions of sections nine and ten, article six, chapter twelve of this code to the contrary notwithstanding, the bonds and notes issued pursuant to the provisions of this article are securities in which all public officers and bodies of this state, including the West Virginia state board of investments, all municipalities and other political subdivisions of this state, all insurance companies and associations and other persons carrying on an insurance business, including domestic for life and domestic not for life insurance companies, all banks, trust companies, societies for savings, building and loan associations, savings and loan associations, deposit guarantee associations and investment companies, all administrators, guardians, executors, trustees and other fiduciaries and all other persons whatsoever who are authorized to invest in bonds or other obligations of the state may properly and legally invest funds, including capital, in their control or belonging to them.
§5B-7-17. Exemption from taxation.
The exercise of the powers granted to the authority by this article will be in all respects for the benefit of the people of the state for the improvement of their health, safety, convenience and welfare and is a public purpose. As the operation and maintenance of projects financed under this article will constitute the performance of essential governmental functions, the authority shall not be required to pay any taxes or assessments upon any property acquired or used by the authority or upon the income therefrom. All bonds and notes of the authority, and all interest and income thereon, shall be exempt from all taxation by this state and any county, municipality, political subdivision or agency thereof, except inheritance taxes.
§5B-7-18. Personal liability; persons executing bonds or notes issued pursuant to this article.

Neither the members or officers of the authority or of any authority, agency or office, nor any person executing the bonds or notes issued pursuant to the provisions of this article, shall be liable personally on such bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.
§5B-7-19. Cumulative authority as to powers conferred; applicability of other statutes and charters; bonds and notes issued pursuant to this article.

The provisions of this article relating to the making of loans and to the issuance of bonds and notes shall be construed as granting cumulative authority for the exercise of the various powers herein conferred, and neither the powers nor any bonds or notes issued hereunder shall be affected or limited by any other statutory or charter provision now or hereafter in force, other than as may be provided in this article, it being the purpose and intention of this article to create full, separate and complete additional powers. The various powers conferred herein may be exercised independently and notwithstanding that no bonds or notes are issued hereunder.
§5B-7-20. Documentary materials concerning trade secrets; commercial or financial information; or confidentiality.

Any documentary material or data made or received by the authority for the purpose of furnishing assistance to a business, to the extent that such material or data consists of trade secrets or commercial or financial information regarding the financial position or business operation of such business, shall not be considered public records and shall be exempt from disclosure pursuant to the provisions of chapter twenty-nine-b of this code. Any discussion or consideration of such trade secrets or commercial or financial information may be held by the authority in executive session closed to the public, notwithstanding the provisions of article nine-a, chapter six of this code: Provided, That the authority shall make publicly availablethe following information regarding executed loans or its provision of insurance: (1) The name of the debtor; (2) location(s) of the project; (3) amount of the authority loan or financial assistance provided by the insurance fund; (4) the purpose of the loan or financial assistance; (5) the term, rate and interest of the loan; and (6) the fixed assets which serve as security for the loan or insurance provided.
§5B-7-21. Program and policy action statement; submission to joint committee on government and finance.

The authority, the West Virginia development office and any other authorities, boards, commissions, corporations or other entities created under this chapter and article eleven, chapter eighteen-b of this code, shall prepare and submit to the joint committee on government and finance on or before the first day of December, two thousand four, and each year thereafter, a program and policy action statement which shall outline in specific detail according to the purpose, powers and duties of the office or section, its procedure, plan and program to be used in accomplishing its goals and duties as required under this article.
§5B-7-22. Public private partnerships.
(a) The authority is authorized to enter into contractual or joint venture agreements with a nonprofit corporation organized pursuant to the corporate laws of the state, organized to permit qualification pursuant to Section 501(c) of the Internal Revenue Code and organized for purposes of the promotion and development of tourism in West Virginia, and funded from sources other than the state. Members of the commission are authorized to sit on the board of directors of the private nonprofit corporation.
(b) From time to time the authority may enter into joint ventures wherein the West Virginia development office and the nonprofit corporation share in the development and funding of tourism promotion or development programs.
(c) All contracts and joint venture agreements must be approved by recorded vote of the authority. Contracts entered into pursuant to this section for longer than one fiscal year shall contain, in substance, a provision that the contract shall be considered canceled without further obligation on the part of the state if the Legislature or, where appropriate, the federal government shall fail to appropriate sufficient funds therefor or shall act to impair the contract or cause it to be canceled.
§5B-7-23. Audits.
As soon as possible after the close of each fiscal year, the authority shall make an annual report of its activities for the preceding fiscal year to the governor and the Legislature. Each such report shall set forth a complete operating and financial statement covering the authority?s operations during the preceding fiscal year. The authority shall cause an audit of its books and accounts to be made at least once each fiscal year by certified public accountants and the cost thereof may be treated as a part of the cost of construction or of operations of its projects.


NOTE: The purpose of this bill is to establish a single tourism authority with the required powers and duties to coordinate tourism promotion and tourism facility development in this state, to provide that all tourism function costs shall be paid from the existing tourism promotion fund, and to provide for uses and expenditures of such funds. The bill also places all tourism personnel, assets and liabilities under the tourism authority and grants the authority power to issue tourism development bonds.

All sections except §5B-2-12 are new; therefore, strike-throughs and underscoring have been omitted.

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