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.