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2001 SESSION

016027208
SENATE BILL NO. 839
Offered January 10, 2001
Prefiled December 20, 2000
A BILL to amend and reenact §§ 2.1-234.13 through 2.1-234.18, 2.1-234.20, 2.1-234.21, 2.1-234.23, 2.1-234.24 and 2.1-234.25 of the Code of Virginia, relating to the purpose of the Virginia Public Building Authority; technical amendments.
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Patron-- Chichester
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Referred to Committee on Finance
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Be it enacted by the General Assembly of Virginia:

1. That §§ 2.1-234.13 through 2.1-234.18, 2.1-234.20, 2.1-234.21, 2.1-234.23, 2.1-234.24 and 2.1-234.25 of the Code of Virginia are amended and reenacted as follows:

§ 2.1-234.13. Purposes and general powers and duties of Authority.

The Authority is created for the purpose of constructing, improving, furnishing, maintaining, acquiring, financing, refinancing, and operating public buildings for the use of the Commonwealth (heretofore or hereafter constructed), state arsenals, armories, and military reserves, state institutions of every kind and character (heretofore and hereafter constructed), additions and improvements to land grant colleges, state colleges, universities and medical colleges, and the purchase of lands for rehabilitation purposes in connection with state institutions and for use of state colleges, and museum facilities for a trust instrumentality of the United States, and the purchase of lands for the development of public buildings which that may be authorized by the General Assembly in the future, the acquisition of items of personal property for the use of the Commonwealth, the financing or refinancing of grants by the Commonwealth or the undertaking of capital projects that benefit the Commonwealth, including grants or undertakings for state, regional or local authorities, its entities, agencies, boards, instrumentalities, or any other entity, pursuant to other applicable provisions of Virginia law, and the financing or refinancing of reimbursements to localities or regional jail authorities entities of all or any portion of the Commonwealth's share of the costs for jail capital projects made pursuant to §§ 53.1-80, 53.1-81, 53.1-82, or § 53.1-95.19 other applicable provisions of Virginia law, and the refinancing of (i) bonds obligations issued by other state and local authorities or political subdivisions of the Commonwealth where such bonds obligations are secured by a lease or other payment agreement with the Commonwealth or (ii) the Commonwealth's obligations under such leases or payment agreements (any and all of the foregoing being herein called projects), the purpose and intent of this article being to benefit the people of the Commonwealth by, among other things, increasing their commerce and prosperity. The Authority shall not undertake or finance or refinance any project or only those projects which that are not specifically included in a any bill or resolution passed by a majority of those elected to each house of the General Assembly, authorizing such project or projects or the reimbursement of all or any portion of the Commonwealth's share of the costs of such project or projects and, as to any project relating to a state institution of higher education, not specifically designated by the board of visitors of that institution as a project to be undertaken by the Authority. The Authority is hereby granted and shall have and may exercise all powers necessary or convenient for the carrying out of the aforesaid purposes, including, but without limiting the generality of the foregoing, the following rights and powers to:

1. To have Have perpetual existence as a corporation.

2. To sue Sue and be sued, implead and be impleaded, complain and defend in all courts.

3. To adopt Adopt, use, and alter at will a corporate seal.

4. To acquire Acquire, purchase, hold and use any property, real, personal or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of the Authority; without limitation of the foregoing, to lease as lessee, with the approval of the Governor, any property, real, personal or mixed, or any interest therein for a term not exceeding ninety-nine years at a nominal rental or at such annual rental as may be determined; with the approval of the Governor, to lease as lessor to the Commonwealth of Virginia and any city, county, town or other political subdivision, or any agency, department, or public body of the Commonwealth, or land grant college, instrumentality, or any other entity, pursuant to other applicable provisions of Virginia law, any project at any time constructed by the Authority and any property, real, personal or mixed, tangible or intangible, or any interest therein, at any time acquired by the Authority, whether wholly or partially completed; with the approval of the Governor, to sell, transfer and convey to the Commonwealth of Virginia, any project at any time constructed by the Authority; and, with the approval of the Governor, to sell, transfer and convey any property, real, personal or mixed, tangible or intangible, or any interest therein, at any time acquired by the Authority.

5. To acquire Acquire by purchase, lease, or otherwise, and to construct, improve, furnish, maintain, repair, and operate projects.

6. To make Make bylaws for the management and regulation of its affairs.

7. To fix Fix, alter, charge, and collect rates, rentals, and other charges for the use of the facilities of, or for the services rendered by, the Authority, or projects Projects thereof, at reasonable rates to be determined by it for the purpose of providing for the payment of the expenses of the Authority, the construction, improvement, repair, furnishing, maintenance, and operation of its facilities and properties, the payment of the principal of and interest on its obligations Bonds, and to fulfill the terms and provisions of any agreements made with the purchasers or holders of any such obligations Bonds.

8. To borrow Borrow money; make and issue negotiable notes, bonds, and other evidences of indebtedness or obligations (herein called bonds) Bonds of the Authority and such bonds Bonds as the Authority may, from time to time, determine to issue for the purpose of refunding bonds Bonds previously issued by the Authority; to secure the payment of all bonds Bonds, or any part thereof, by pledge or deed of trust of all or any of its revenues, rentals, and receipts; to make such agreements with the purchasers or holders of such bonds Bonds or with others in connection with any such bonds Bonds, whether issued or to be issued, as the Authority shall deem advisable; and in general, to provide for the security for said bonds Bonds and the rights of holders thereof.

The Authority shall submit an annual report to the Governor and General Assembly on or before November 1 of each year containing, at a minimum, the annual financial statements of the Authority for the year ending the preceding June 30. The annual report shall be distributed in accordance with the provisions of § 2.1-467.

9. To make Make contracts of every name and nature, and to execute all instruments necessary or convenient for the carrying on of to carry out its business.

10. Without limitation of the foregoing, to borrow money and accept grants from, and to enter into contracts, leases or other transactions with, any federal agency.

11. To have Have the power of eminent domain.

12. To pledge Pledge or otherwise encumber all or any of the revenues or receipts of the Authority as security for all or any of the obligations Bonds of the Authority.

13. To do Do all acts and things necessary or convenient to carry out the powers granted to it by this article or any other acts.

14. To acquire Acquire, by assignment from the Commonwealth or the Virginia Retirement System, all contracts, including those which that are not completed, which involve constructing, improving, furnishing, maintaining, and operating the structures, facilities, or undertakings similar to those designated herein as projects Projects.

15. To enter Enter into contractual agreements with localities or regional jail authorities entities undertaking a jail capital project for which the financing or refinancing of reimbursements of all or any portion of the Commonwealth's share of the costs of such project will be made pursuant to subsection A 3 of § 53.1-82.2 other applicable provisions of law.

Except as otherwise provided by law, when projects Projects are to be constructed, improved, furnished, maintained, repaired or operated for the use of any department of the Commonwealth, as hereinbefore listed in this section, no plans or specifications therefor shall be presented for quotations or bids until such the plans and specifications shall have been submitted to and approved by the Department of General Services and any other department of the Commonwealth having any jurisdiction over the projects Projects, so that the project Project will conform to standards established by such departments.

§ 2.1-234.14. Revenue Bonds generally.

The Authority is hereby authorized may, by and with the consent of the Governor, to provide for the issuance, at one time or from time to time, of revenue bonds Bonds of the Authority for the purpose of paying all or any part of the cost of any one or more projects or of any portion Projects or portions thereof. The principal of and the interest on such bonds Bonds shall be payable solely from the funds provided in this article for such payment. Any bonds Bonds of the Authority issued pursuant to this article shall not constitute a debt of the Commonwealth, or any political subdivision thereof other than the Authority, and shall so state on their face. Neither the members of the Authority nor any person executing such bonds Bonds shall be liable personally thereon by reason of the issuance thereof. The bonds Bonds of each issue shall be dated, shall bear interest, shall mature at such time or times not exceeding forty years from their date or dates, as may be determined by the Authority, and may be made redeemable before maturity, at the option of the Authority, at such price or prices and under such terms and conditions as may be fixed determined by the Authority, at such price or prices and under such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds Bonds. The Authority shall determine the form and the manner of execution of the bonds Bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds Bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the Commonwealth. In case any officer whose signature or a facsimile of whose signature shall appear appears on any bonds Bonds or coupons shall cease to be such officer before the delivery of such bonds Bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The bonds Bonds may be issued in coupon or in registered form or both, as the Authority may determine, and provision may be made for the registration of any coupon bonds Bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds Bonds of any bonds Bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds Bonds. The Authority may sell such bonds Bonds in such manner, either at public or private sale, and for such price as it may determine will best effect the purposes of this chapter.

The proceeds of the bonds Bonds of each issue shall be used solely for the payment of the cost of the projects Projects for which such bonds Bonds shall have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the resolution authorizing the issuance of such bonds Bonds or in the trust agreement hereinafter mentioned securing the same. If the proceeds of the bonds Bonds of any issue, by error of estimates or otherwise, shall be less than such cost, additional bonds Bonds may in like manner be issued to provide the amount of such deficit, and, unless otherwise provided in the resolution authorizing the issuance of such bonds Bonds or in the trust agreement securing the same, 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 Bonds first issued. If the proceeds of the bonds Bonds of any issue shall exceed such cost, the surplus shall be deposited to the credit of the sinking fund for such bonds Bonds, or may be applied to the payment of the cost of any additional project or projects Projects.

Prior to the preparation of definitive bonds Bonds, the Authority may, under like restrictions issue interim receipts or temporary bonds Bonds, with or without coupons, exchangeable for definitive bonds Bonds when such bonds Bonds shall have been executed and are available for delivery. The Authority may also provide for the replacement of any bonds Bonds which that shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the Commonwealth, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this article.

§ 2.1-234.15. Trust agreement securing Bonds.

In the discretion of the Authority any bonds Bonds issued under the provisions of this article may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. Such The trust agreement or the resolution providing for the issuance of such bonds Bonds may pledge or assign the revenues to be received, but shall not convey or mortgage any project or any part thereof. Such The trust agreement or resolution providing for the issuance of such bonds Bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Authority in relation to the acquisition of property and the acquisition, construction, establishment, improvement, extension, enlargement, maintenance, repair, operation and insurance of the project or projects in connection with which such bonds Bonds shall have been authorized, the rates and fees to be charged, the custody, safeguarding and application of all moneys, and conditions or limitations with respect to the issuance of additional bonds Bonds. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth which that may act as depository of the proceeds of bonds Bonds or of revenues to furnish such indemnifying bonds Bonds or to pledge such securities as may be required by the Authority. Any such trust agreement may set forth the rights of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the operation of the project or projects Projects.

§ 2.1-234.16. Rents, fees and charges for financing or refinancing, services or use of facilities; use and disposition of revenues.

The Authority is hereby authorized to may fix, revise, charge, and collect rates, fees, and other charges for the financing or refinancing of, the use of or for the services and facilities furnished by each project Project and the different parts thereof, and to contract with any agency, commission , political subdivision or other entity desiring the use of any part thereof, and to fix the terms, conditions, rents, and rates of charges for such use or financing or refinancing. Such rates, fees, and other charges shall be so fixed and adjusted so that revenues of the Authority, together with any other available funds, will be sufficient at all times to pay (i) the cost of maintaining, repairing and operating such project or projects Projects and (ii) the principal of and the interest on such bonds the related Bonds as the same shall become due and payable, and to create reserves for such purposes. Such rates, fees, and other charges shall not be subject to supervision or regulation by any other commission, board, bureau, or agency of the Commonwealth. The revenues derived from the project or projects Projects in connection with which the bonds Bonds shall have been issued, except such part thereof as may be necessary to pay such cost of maintenance, repair and operation and to provide such reserves therefor as may be provided for in the resolution authorizing the issuance of such bonds Bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or such trust agreement in a sinking fund which is hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds Bonds as the same shall become due, and the redemption price or the purchase price of bonds Bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made, the revenues or other moneys so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Authority. The use and disposition of moneys to the credit of such sinking fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds Bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking fund shall be a fund for all such bonds Bonds without distinction or priority of one over another.

§ 2.1-234.17. Moneys received deemed trust funds.

All moneys received pursuant to the authority of this article, whether as proceeds from the sale of bonds Bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this article. The resolution authorizing the bonds Bonds of any issue or the trust agreement securing such bonds Bonds shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as a trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this article and such the resolution or trust agreement may provide.

§ 2.1-234.18. Proceedings by bondholder or trustee to enforce rights.

Any holder of bonds Bonds issued under the provisions of this article or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by such the trust agreement or the resolution authorizing the issuance of such bonds the Bonds, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the Commonwealth or granted hereunder or under such the trust agreement or resolution, and may enforce and compel the performance of all duties required by this article or by such the trust agreement or resolution to be performed by the Authority or by any officer thereof, including the fixing, charging, and collecting of rates, fees, and other charges.

§ 2.1-234.20. Revenue refunding Bonds; Bonds for refunding and for cost of additional Projects.

The Authority is hereby authorized to provide for the issuance of revenue refunding bonds Bonds of the Authority for the purpose of refunding any bonds obligations then outstanding which that shall have been issued under the provisions of this article or by other state and local authorities or political subdivisions of the Commonwealth where such bonds obligations are secured by a lease or other payment agreement with the Commonwealth, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds obligations, and, if deemed advisable by the Authority, for the additional purpose of constructing improvements, extensions, or enlargements of the project or projects in connection with which the bonds obligations to be refunded shall have been issued. The Authority is further authorized to provide by resolution for the issuance of its revenue bonds obligations for the combined purpose of (i) refunding any bonds obligations then outstanding which that shall have been issued under the provisions of this article or by other state and local authorities or political subdivisions of the Commonwealth where such bonds obligations are secured by a lease or other payment agreement with the Commonwealth, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds obligations, and (ii) paying all or any part of the cost of any additional project or projects or any portion or portions thereof. The issuance of such bonds the Bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the Authority in respect of the same shall be governed by the provisions of this article insofar as the same may be applicable.

§ 2.1-234.21. Contracts, leases and other arrangements.

A. In connection with the operation of a facility owned or controlled by the Authority, the Authority may enter into contracts, leases, and other arrangements with any person or persons (i) granting the privilege of using or improving the facility or any portion or facility thereof or space therein consistent with the purposes of this article; (ii) conferring the privilege of supplying goods, commodities, things, services, or facilities at the facility; (iii) making available services to be furnished by the Authority or its agents at the facility; and (iv) providing for the payment therefor.

In each case the Authority may establish the terms and conditions and fix the charges, rentals, or fee for the privilege or service, which shall be reasonable and uniform for the same class of privilege or service at each facility and shall be established with due regard to the property and improvements used and the expenses of operation to the Authority.

B. Except as may be limited by the terms and conditions of any grant, loan or agreement authorized by § 2.1-234.23, the Authority may by contract, lease, or other arrangements, upon a consideration fixed by it, grant to any qualified person, for a term not to exceed thirty years, the privilege of operating, as agent of the Authority or otherwise, any facility owned or controlled by the Authority; provided that no person shall be granted any authority to operate a facility other than as a public facility or to enter into any contracts, leases, or other arrangements in connection with the operation of the facility which the Authority might not have undertaken under subsection A of this section.

C. In connection with a project leased to or financed or refinanced for a trust instrumentality of the United States where payments or contributions by the Commonwealth and any political subdivision, together with amounts pursuant to an agreement with such trust instrumentality to pay rent or other amounts, are sufficient to pay the principal of and interest on the Authority's bonds Bonds issued to finance or refinance such project, the Authority may agree that such trust instrumentality shall assume all responsibility for the acquisition, construction, operation, maintenance, and repair of the project and may further agree that when the principal of all such bonds Bonds of the Authority and the interest thereon have been paid in full or provision made therefor satisfactory to the Authority, the trust instrumentality may acquire the Authority's interest in such project without payment of additional consideration.

§ 2.1-234.23. Grants or loans of public or private funds.

The Authority is authorized to may accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, including proceeds of the Authority's bonds Bonds, made available by grant or loan or both, to accomplish, in whole or in part, any of the purposes of this article. All federal moneys accepted under this section shall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the United States and as are consistent with state law; and all state moneys accepted under this section shall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the Commonwealth.

§ 2.1-234.24. Exemption from taxes or assessments.

The exercise of the powers granted by this article will shall be in all respects for the benefit of the people of the Commonwealth, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of projects Projects by the Authority will constitute constitutes the performance of essential governmental functions, the Authority shall not be required to pay any taxes or assessments upon any project or any property acquired or used by the Authority under the provisions of this article or upon the income therefrom, and any bonds Bonds issued under the provisions of this article, their transfer and the income therefrom (including any profit made on the sale thereof) shall at all times be free from taxation within the Commonwealth.; provided that the The exemption hereby granted under this section shall not be construed to extend to persons conducting on the premises of a facility businesses for which local or state taxes would otherwise be required.

§ 2.1-234.25. Governing body of Authority.

The powers of the Authority shall be exercised by a governing body consisting of the members of the Authority acting as a board the Board. The board Board shall elect from their number its membership a vice-chairman, a treasurer and a secretary. In the absence of the chairman, the vice-chairman shall exercise the powers and duties thereof. The offices of secretary and treasurer may be combined. The board Board may elect such other officers from its own membership or from without as it deems appropriate who need not be members of the Board.

Four members shall constitute a quorum of the board Board for the purpose of organizing the Authority, and conducting the its business thereof and for all other purposes., and all All actions shall be taken by vote of a majority of the members of the Authority Board, unless in any case the bylaws of the Authority shall require a larger number.

The board shall have full authority to manage the properties and business of the Authority, and to prescribe, amend, and repeal bylaws, rules, and regulations governing the manner in which the business of the Authority may be conducted, and the powers granted to it may be exercised and embodied. The board may assign to the Treasury Board or the State Treasurer such powers and duties as it may deem proper.