H. B. 4343


(By Delegates Staton and Browning)
[Introduced February 1, 2006; referred to the
Committee on Government Organization then Finance.]




A BILL to amend and reenact §17-16A-6, §17-16A-10, §17-16A-11, §17-16A-21, §17-16A-22 and §17-16A-25 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto a new section, designated §17-16A-30, all relating to prohibiting the West Virginia Parkways, Economic Development and Tourism Authority from issuing new bonds once current bonds have been repaid; prohibiting it from refinancing existing bonds; and terminating the parkways authority.

Be it enacted by the Legislature of West Virginia:
That §17-16A-6, §17-16A-10, §17-16A-11,§17-16A-21, §17-16A-22 and §17-16A-25 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto a new section, designated §17-16A-30, all to read as follows:
ARTICLE 16A. WEST VIRGINIA PARKWAYS, ECONOMIC DEVELOPMENT AND
TOURISM AUTHORITY.

§17-16A-6. Parkways authority's powers.

(a) The parkways authority is hereby authorized and empowered:
(1) To adopt bylaws for the regulation of its affairs and the conduct of its business;
(2) To adopt an official seal and alter the same at pleasure;
(3) To maintain an office at such place or places within the state as it may designate;
(4) To sue and be sued in its own name, plead and be impleaded. Any and all actions against the parkways authority shall be brought only in the county in which the principal office of the parkways authority shall be located;
(5) To construct, reconstruct, improve, maintain, repair and operate projects at such locations within the state as may be determined by the parkways authority: Provided, That the parkways authority shall be prohibited from constructing motels or any other type of lodging facility within five miles of the West Virginia Turnpike;
(6) To issue parkway revenue bonds of the State of West Virginia, payable solely from revenues, for the purpose of paying all or any part of the cost of any one or more projects, which costs may include, with respect to the West Virginia Turnpike, such funds as are necessary to repay to the State of West Virginia all or any part of the state funds used to upgrade the West Virginia Turnpike to federal interstate standards: Provided, That beginning the first day of July, two thousand six, once all existing parkway revenue bonds have been repaid, the parkways authority may not issue any more parkway revenue bonds: Provided, however, That beginning the first day of July, two thousand six, the parkways authority may not refinance any existing parkway revenue bonds it has issued;
(7) To issue parkway revenue refunding bonds of the State of West Virginia, payable solely from revenues, for any one or more of the following purposes: (i) Constructing improvements, enlargements or extensions to the project in connection with which the bonds to be refunded were issued; (ii) paying all or part of the cost of any additional project or projects; (iii) refunding any bonds which shall have been issued under the provisions of this article or any predecessor thereof; and (iv) repaying to the state all or any part of the state funds used to upgrade the West Virginia Turnpike to federal interstate standards: Provided, That beginning the first day of July, two thousand six, once all existing parkway revenue refunding bonds have been repaid, the parkways authority may not issue any more parkway revenue refunding bonds: Provided, however, That beginning the first day of July, two thousand six, the parkways authority may not refinance any existing parkway revenue refunding bonds it has issued;
(8) To fix and revise from time to time tolls for transit over each parkway project constructed by it or by the West Virginia Turnpike Commission;
(9) To fix and revise from time to time rents, fees or other charges, of whatever kind or character, for the use of each tourism project or economic development project constructed by it or for the use of any building, structure or facility constructed by it in connection with a parkway project;
(10) To acquire, hold, lease and dispose of real and personal property in the exercise of its powers and the performance of its duties under this article;
(11) To acquire in the name of the state by purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, or by the exercise of the right of condemnation in the manner hereinafter provided, such public or private lands, including public parks, playgrounds or reservations, or parts thereof or rights therein, rights-of-way, property, rights, easements and interests, as it may deem necessary for carrying out the provisions of this article. No compensation shall be paid for public lands, playgrounds, parks, parkways or reservations so taken, and all public property damaged in carrying out the powers granted by this article shall be restored or repaired and placed in its original condition as nearly as practicable;
(12) To designate the locations, and establish, limit and control such points of ingress to and egress from each project as may be necessary or desirable in the judgment of the parkways authority to ensure the proper operation and maintenance of such project, and to prohibit entrance to such project from any point or points not so designated;
(13) To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this article, and to employ consulting engineers, attorneys, accountants, architects, construction and financial experts, trustees, superintendents, managers and such other employees and agents as may be necessary in its judgment, and to fix their compensation. All such expenses shall be payable solely from the proceeds of parkway revenue bonds or parkway revenue refunding bonds issued under the provisions of this article, tolls or from revenues;
(14) To make and enter into all contracts, agreements or other arrangements with any agency, department, division, board, bureau, commission, authority or other governmental unit of the state to operate, maintain or repair any project;
(15) To receive and accept from any federal agency grants for or in aid of the construction of any project, and to receive and accept aid or contributions from any source of either money, property, labor or other things of value, to be held, used and applied only for the purposes for which such grants and contributions may be made;
(16) To do all acts and things necessary or convenient to carry out the powers expressly granted in this article; and
(17) To file the necessary petition or petitions pursuant to Title 11, United States Code, Sec. 401 (being section 81 of the Act of Congress entitled "An act to establish a uniform system of bankruptcy throughout the United States," approved July 1, 1898, as amended) and to prosecute to completion all proceedings permitted by Title 11, United States Code, Secs. 401-403 (being sections 81 to 83, inclusive, of said Act of Congress). The State of West Virginia hereby consents to the application of said Title 11, United States Code, Secs. 401-403, to the parkways authority.
(b) Nothing in this article shall be construed to prohibit the issuance of parkway revenue refunding bonds in a common plan of financing with the issuance of parkway revenue bonds.
§17-16A-10. Parkway revenue bonds generally.

(a) The parkways authority is authorized to provide by resolution for the issuance of parkway revenue bonds of the state for the purpose of paying all or any part of the cost of one or more projects: Provided, That this section shall not be construed as authorizing the issuance of parkway revenue bonds for the purpose of paying the cost of the West Virginia Turnpike, which parkway revenue bonds may be issued only as authorized under section eleven of this article. The principal of and the interest on bonds shall be payable solely from the funds provided for payment.
(b) The bonds of each issue shall be dated, shall bear interest at a rate as may be determined by the parkways authority in its sole discretion, shall mature at a time not exceeding forty years from their date or of issue as may be determined by the parkways authority, and may be made redeemable before maturity, at the option of the parkways authority at a price and under the terms and conditions as may be fixed by the parkways authority prior to the issuance of the bonds.
(c) The parkways authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at any bank or trust company within or without the state.
(d) The bonds shall be executed by manual or facsimile signature by the chair of the parkways authority, and the official seal of the parkways authority shall be affixed to or printed on each bond, and attested, manually or by facsimile signature, by the secretary and treasurer of the parkways authority. Any coupons attached to any bond shall bear the manual or facsimile signature of the chair of the parkways authority.
(e) In case any officer whose signature or a facsimile of whose signature appears on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until delivery. In case the seal of the parkways authority has been changed after a facsimile has been imprinted on the bonds, then the facsimile seal will continue to be sufficient for all purposes.
(f) All bonds issued under the provisions of this article shall have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the state. The bonds may be issued in coupon or in registered form, or both, as the parkways authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the recorders into coupon bonds of any bonds registered as to both principal and interest.
(g) The parkways authority may sell the bonds at a public or private sale at a price it determines to be in the best interests of the state.
(h) The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the parkway project or projects for which the bonds were issued, and shall be disbursed in a manner consistent with the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds.
(i) If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than the cost, then additional bonds may in like manner be issued to provide the amount of the deficit. Unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds, the additional bonds shall be deemed 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.
(j) If the proceeds of the bonds of any issue exceed the cost of the project or projects for which the bonds were issued, then the surplus shall be deposited to the credit of the sinking fund for the bonds.
(k) Prior to the preparation of definitive bonds, the parkways authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery. The parkways authority may also provide for the replacement of any bonds that become mutilated or are destroyed or lost.
(l) Bonds may be issued under the provisions of this article without obtaining the consent of any department, division, commission, board, bureau or agency of the state in accordance with this article.
(m) Beginning the first day of July, two thousand six, once all existing parkway revenue bonds have been repaid, the parkways authority may not issue any more parkway revenue bonds as mentioned in this section. Beginning the first day of July, two thousand six, the parkways authority may not refinance any existing parkway revenue bonds it has issued.
§17-16A-11. Parkway revenue bonds-West Virginia turnpike; related projects.

(a) The parkways authority is authorized to provide by resolution, at one time or from time to time, for the issuance of parkway revenue bonds of the state in an aggregate outstanding principal amount not to exceed, from time to time, two hundred million dollars for the purpose of paying: (i) All or any part of the cost of the West Virginia Turnpike, which may include, but not be limited to, an amount equal to the state funds used to upgrade the West Virginia Turnpike to federal interstate standards; (ii) all or any part of the cost of any one or more parkway projects that involve improvements to or enhancements of the West Virginia Turnpike, including, without limitation, lane-widening on the West Virginia Turnpike and that are or have been recommended by the parkways authority's traffic engineers or consulting engineers or by both of them prior to the issuance of parkway revenue bonds for the project or projects; and (iii) to the extent permitted by federal law, all or any part of the cost of any related parkway project. For purposes of this section only, a "related parkway project" means any information center, visitors' center or rest stop, or any combination thereof, and any expressway, turnpike, trunkline, feeder road, state local service road or park and forest road which connects to or intersects with the West Virginia Turnpike and is located within seventy-five miles of the turnpike as it exists on the first day of June, one thousand nine hundred eighty-nine, or any subsequent expressway, trunkline, feeder road, state local service road or park and forest road constructed pursuant to this article: Provided, That nothing in this section shall be construed as prohibiting the parkways authority from issuing parkway revenue bonds pursuant to section ten of this article for the purpose of paying all or any part of the cost of any related parkway project: Provided, however, That none of the proceeds of the issuance of parkway revenue bonds under this section shall be used to pay all or any part of the cost of any economic development project, except as provided in section twenty-three of this article: Provided further, That nothing in this section shall be construed as prohibiting the parkways authority from issuing additional parkway revenue bonds to the extent permitted by applicable federal law for the purpose of constructing, maintaining and operating any highway constructed, in whole or in part with money obtained from the Appalachian Regional Commission as long as the highway connects to the West Virginia Turnpike as it existed as of the first day of June, one thousand nine hundred eighty-nine: And provided further, That, for purposes of this section, in determining the amount of bonds outstanding, from time to time, within the meaning of this section: Original par amount or original stated principal amount at the time of issuance of bonds shall be used to determine the principal amount of bonds outstanding, except that the amount of parkway revenue bonds outstanding under this section may not include any bonds that have been retired through payment, defeased through the deposit of funds irrevocably set aside for payment or otherwise refunded so that they are no longer secured by toll revenues of the West Virginia Turnpike: And provided further, That the authorization to issue bonds under this section is in addition to the authorization and power to issue bonds under any other section of this code: And provided further, That, without limitation of the authorized purposes for which parkway revenue bonds are otherwise permitted to be issued under this section, and without increasing the maximum principal par amount of parkway revenue bonds permitted to be outstanding, from time to time, under this section, the authority is specifically authorized by this section to issue, at one time or from time to time, by resolution or resolutions under this section, parkway revenue bonds under this section for the purpose of paying all or any part of the cost of one or more parkway projects that: (i) Consist of enhancements or improvements to the West Virginia Turnpike, including, without limitation, projects involving lane widening, resurfacing, surface replacement, bridge replacement, bridge improvements and enhancements, other bridge work, drainage system improvements and enhancements, drainage system replacements, safety improvements and enhancements, and traffic flow improvements and enhancements; and (ii) have been recommended by the authority's consulting engineers or traffic engineers, or both, prior to the issuance of the bonds. Except as otherwise specifically provided in this section, the issuance of parkway revenue bonds pursuant to this section, the maturities and other details of the bonds, the rights of the holders of the bonds, and the rights, duties and obligations of the parkways authority in respect of the bonds shall be governed by the provisions of this article insofar as the provisions are applicable.
(b) Notwithstanding the provisions of subsection (a) of this section, no additional bonds authorized by the amendments to this section enacted during the regular session of the Legislature in the year two thousand four may be issued until the parkways authority has adopted by written resolution a final, irrevocable decision to fully fund and complete the construction of a Shady Spring connector and interchange connecting to the West Virginia Turnpike from its toll funds or from the proceeds of bonds issued for that purpose pursuant to subsection (a) of this section, or from both, or funded, in whole or in part, by federal highway funds if they are available.
(c) Beginning the first day of July, two thousand six, once all existing parkway revenue bonds have been repaid, the parkways authority may not issue any more parkway revenue bonds as mentioned in this section. Beginning the first day of July, two thousand six, the parkways authority may not refinance any existing parkway revenue bonds it has issued.
§17-16A-21. Parkway revenue refunding bonds--Generally.

The parkways authority is hereby authorized to provide by resolution for the issuance of parkway revenue refunding bonds of the state for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds; and, if deemed advisable by the parkways authority, for the additional purpose of constructing improvements, extensions or enlargements of the project or projects in connection with which the bonds to be refunded shall have been issued: Provided, That this section shall not be construed as authorizing the issuance of parkway revenue refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this article, or any predecessor thereof, in connection with the construction of the West Virginia Turnpike, which revenue refunding bonds may be issued only as authorized under section twenty-two of this article. The parkways authority is further authorized to provide by resolution for the issuance of parkway revenue bonds of the state for the combined purpose of two or more of the following: (a) Refunding any bonds then outstanding which shall have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds; (b) paying all or any part of the cost of any additional project or projects; and (c) repaying to the state all or any part of the state funds used to upgrade the West Virginia Turnpike to federal interstate standards. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the parkways authority in respect of the same, shall be governed by the provisions of this article insofar as the same may be applicable. Beginning the first day of July, two thousand six, once all existing parkway revenue refunding bonds have been repaid, the parkways authority may not issue any more parkway revenue refunding bonds. Beginning the first day of July, two thousand six, the parkways authority may not refinance any existing parkway revenue refunding bonds it has issued.
§17-16A-22. Parkway revenue refunding bonds--West Virginia Turnpike.

The parkways authority is hereby authorized to provide by resolution for the issuance of parkway revenue refunding bonds of the state in an aggregate principal amount not to exceed sixty million dollars for the purpose of refunding any bonds which shall have been issued under this article, or any predecessor thereof, in connection with the construction of the West Virginia Turnpike, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and, to the extent permissible under federal law and if deemed advisable by the parkways authority, for either or both of the following purposes: (a) Paying all or any part of the cost of any additional parkway project or projects, and (b) repaying to the state all or any part of the state funds used to upgrade the West Virginia Turnpike to federal interstate standards: Provided, That any proceeds derived from the issuance of such bonds which are used on any parkway project other than the West Virginia Turnpike must be used solely on parkway projects (i) Which are either connected to or intersect with the West Virginia Turnpike and are within seventy-five air miles of said turnpike as it exists on the first day of June, one thousand nine hundred eighty-nine, or any subsequent expressway, trunkline, turnpike, feeder road, state local service road or park and forest road constructed pursuant to this article, and (ii) which involve the upgrading or addition of interchanges, the construction of expressways or feeder roads, or the upgrading or construction of information centers, visitors' centers, rest stops, or any combination thereof: Provided, however, That none of the proceeds of the issuance of parkway revenue refunding bonds issued under this section shall be used to pay all or any part of the cost of any economic development project, except as provided in section twenty-three of this article. Except as otherwise specifically provided in this section, the issuance of parkway revenue refunding bonds pursuant to this section, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the parkways authority in respect of the same, shall be governed by the provisions of this article insofar as the same may be applicable. Beginning the first day of July, two thousand six, once all existing parkway revenue refunding bonds have been repaid, the parkways authority may not issue any more parkway revenue refunding bonds in connection with the West Virginia Turnpike as mentioned in this section. Beginning the first day of July, two thousand six, the parkways authority may not refinance any existing parkway revenue refunding bonds in connection with the West Virginia Turnpike it has issued.
§17-16A-25. Additional powers of parkways authority; issuance of special obligation bonds.

(a) In addition to all powers granted by the foregoing sections of this article, the parkways authority in connection with a proceeding prosecuted to completion under Title 11, United States Code, Secs. 401-403, as permitted by subdivision (17), section six of this article is hereby authorized to provide by resolution for the issuance of special obligation bonds of the state for the purpose of exchanging such special obligation bonds for all bonds then outstanding which shall have been issued under the provisions of this article. Special obligation bonds issued under the provisions of this section shall not be deemed to constitute a debt of the state or of any political subdivision thereof or a pledge of the faith and credit of the state or of any such political subdivision, but such bonds shall be payable solely from the funds herein provided therefor from pledged property and income therefrom as provided in subdivision (1) of this subsection. All such special obligation bonds shall contain on the face thereof a statement in accordance with the preceding sentence. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the parkways authority in respect of the same shall be governed by the provisions of this article insofar as the same may be applicable with the following express exceptions:
(1) The principal of and the interest on such special obligation bonds shall not be payable from tolls, rents, fees, charges or revenues of any parkway project but shall be payable solely from such other property purchased and pledged as security therefor as the parkways authority shall determine together with the income derived therefrom which other property may include direct obligations of, or obligations the principal of and the interest on which are guaranteed by, the United States government or participation certificates or other obligations issued by or by authority of the United States government; and
(2) Following the issuance of such special obligation bonds there shall be no obligation to fix, revise, charge and collect tolls for the use of any parkway project and any parkway project shall be transferred to the State Department Division of Highways and shall thereafter be maintained by the State Department Division of Highways free of tolls. At such time as the special obligation bonds are issued, then section eighteen of this article shall be of no further force and effect.
(b) Financial, legal, engineering and feasibility consultants may be employed to perform such services as the parkways authority shall deem necessary or desirable in connection with the Title 11 proceedings mentioned above and the issuance and exchange of the special obligation bonds.
(c) The entire powers herein granted by this section to the parkways authority may be exercised by the State Department Division of Highways in which event the special obligation bonds herein authorized shall be executed by manual or facsimile signature by the governor and by the Commissioner of the Department Division of Highways, and the official seal of the Department Division of Highways shall be affixed to or printed on each bond, and any coupons attached to such bonds shall bear the manual or facsimile signature of the Commissioner of the State Department Division of Highways. In the event that the State Department Division of Highways shall elect to exercise the powers granted by this section, it shall file a statement to that effect in the office of the chairman of the parkways authority and in the office of the Secretary of State, and upon the issuance of the special obligation bonds herein provided for, the State Department Division of Highways shall succeed immediately to the principal functions of the parkways authority and the parkways authority shall then be abolished.
(d) Beginning the first day of July, two thousand six, once all existing special obligation bonds have been repaid, the parkways authority may not issue any more special obligation bonds as mentioned in this section. Beginning the first day of July, two thousand six, the parkways authority may not refinance any existing special obligation bonds it has issued.
(d) (e) The State Department Division of Highways is hereby empowered to acquire by purchase the parkways authority and all its rights-of-way, equipment, facilities and any and all other rights or interest the parkways authority has or had in any project, from any funds available to it, and to pay any expenses incident to such acquisition under the provisions of this article: Provided, That the contribution of the State Department Division of Highways in making such acquisition shall not exceed the sum of twenty million dollars from all sources of public moneys of the State of West Virginia, excluding any funds reimbursed or reimbursable or otherwise provided or to be provided by the federal government. No funds derived from the sale of the three hundred fifty million dollars bond issue authorized by the roads development amendment shall be included in the acquisition of the West Virginia Turnpike.
§17-16A-30. Termination of Parkways, Economic Development and Tourism Authority.

Notwithstanding the provisions of section four, article ten, chapter four of this code, beginning the first day of July, two thousand six, once all existing bonds as mentioned in this article have been repaid, the West Virginia Parkways, Economic Development and Tourism Authority will terminate one year after this repayment has occurred. All duties and responsibilities of the parkways authority related to roads, highways and the West Virginia Turnpike will be assumed by and transferred to the Division of Highways.


NOTE: The purpose of this bill is to prohibit the West Virginia Parkways, Economic Development and Tourism Authority from issuing new bonds once current bonds have been repaid, to prohibit it from refinancing existing bonds and to terminate the parkways authority.

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

§17-16A-30 is new; therefore, strike-throughs and underscoring have been omitted.