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2002 SESSION
024287208Patrons-- Callahan, Albo, Almand, Amundson, Armstrong, Baskerville, Bland, Bolvin, Christian, Crittenden, Darner, Hull, Jones, D.C., McQuigg, Moran, Morgan, Petersen, Pollard, Scott, Shuler, Spruill, Suit, Van Yahres and Welch; Senator: Rerras
Be it enacted by the General Assembly of Virginia:
1. § 1. Title. This act shall be known and may be cited as the “Commonwealth of Virginia Educational Facilities Bond Act of 2002.”
§ 2. Authorization of Bonds and BANs. Subject to a favorable vote of a majority of the qualified voters voting on this act at the November 5, 2002, general election as hereinafter provided, the Treasury Board is hereby authorized, by and with the consent of the Governor, to sell and issue, at one time or from time to time, bonds of the Commonwealth, to be designated “Commonwealth of Virginia General Obligation Bonds, Series....,” in an aggregate principal amount not exceeding $608,190,000. The Treasury Board is further authorized, by and with the consent of the Governor, to borrow money in anticipation of the issuance of the bonds by the issuance of bond anticipation notes (“BANs”), including BANs issued as commercial paper.
§ 3. Purpose; Projects. The proceeds of the bonds and BANs, excluding amounts needed to pay issuance costs and other financing expenses, shall be used as provided in § 4 hereof for capital projects for educational facilities as follows:
College of William and Mary Renovate/Expand Rogers Hall $19,750,000
University of Virginia Construct Materials Science
Engineering & Nanotechnology
Building 7,000,000
University of Virginia Construct Medical Research
Building (MR-6) 25,000,000
University of Virginia Renovate Fayerweather Hall 4,600,000
University of Virginia Renovate Gilmer Hall Teaching
Laboratories 5,700,000
University of Virginia Replace Campbell Hall Chiller 1,719,000
University of Virginia Upgrade Cavalier Substation 4,700,000
Virginia Polytechnic Institute
and State University Construct Biomedical Science
Complex, Phase II 24,394,000
Virginia Polytechnic Institute
and State University Construct Biology Building 16,116,000
Virginia Polytechnic Institute
and State University Construct New Engineering
Facility, Phase I 17,000,000
Virginia Polytechnic Institute
and State University Renovate Williams Hall 5,218,000
Virginia Military Institute Construct Women's Athletic
Facilities 1,629,000
Virginia Military Institute Renovate Nichols Engineering
Building 19,585,000
Virginia State University Construct New Academic Science
& Technology Building 19,697,000
Virginia State University Renovate Gandy Hall 7,389,000
Norfolk State University Construct Rise Center 21,000,000
Norfolk State University Increase student access to
technology 4,300,000
Norfolk State University Renovate HVAC Systems 2,048,000
Norfolk State University Renovate Robinson Technology
Building 9,650,000
Norfolk State University Renovate Teacher's Education
Building 4,217,000
Longwood College Construct Bedford Wygal Connector 8,856,000
Longwood College Renovate Jarman Building 6,266,000
Mary Washington College Construct James Monroe Center
Campus building #2 9,072,000
Mary Washington College Renovate / Alter Portions of 4
Academic buildings 2,242,000
James Madison University Construct CISAT Academic 3a Bldg 28,405,000
James Madison University Renovate and upgrade technology
infrastructure 8,768,000
Radford University Construct Fine Arts Center 20,000,000
Old Dominion University Renovate Batten Arts and Letters
Building 11,406,000
Old Dominion University Renovate Technology Building 10,816,000
Virginia Cooperative Extension
and Agricultural
Experiment Station Construct Agriculture and Natural
Resources Research Laboratory
Facility 21,808,000
Virginia Commonwealth Univ Renovate West Hospital and
G.B. Johnston Lecture 14,529,000
Virginia Commonwealth Univ Construct Massey Cancer
Center Addition 13,000,000
Virginia Commonwealth Univ Construct Medical Sciences
Building, Phase II 26,250,000
Virginia Commonwealth Univ Renovate Business Building
Classrooms 1,796,000
Richard Bland College Renovate/Expand Library and
Art buildings 3,627,000
Christopher Newport University Construct Performing Arts Center,
Ferguson Hall Portion 16,107,000
George Mason University Construct Academic II -
Arlington - Campus 35,955,000
George Mason University Construct Academic IIIA -
Prince William-Campus
(Life Sciences Initiative) 21,381,000
Virginia Community Coll System Complete ADA compliance and
life safety improvements at
John Tyler, Mountain Empire,
New River, Northern Virginia,
Paul D. Camp, Piedmont Virginia,
Tidewater and Wytheville
Community Colleges 5,650,000
Virginia Community Coll System Complete Franklin Campus
Renovations, Paul D. Camp 500,000
Virginia Community Coll System Construct Advanced Technology
and Workforce Development Center,
Germanna 7,055,000
Virginia Community Coll System Construct computing services
expansion, New River 300,000
Virginia Community Coll System Construct maintenance buildings
at Blue Ridge, Mountain Empire,
New River, Rappahannock,
Southside Virginia (Christanna
and Daniel Campuses), and Central
Virginia Community Colleges 3,745,000
Virginia Community Coll System Construct Manufacturing Technology
Building, Central Virginia 4,355,000
Virginia Community Coll System Construct phase III building and
renovate phase I & II buildings,
Alexandria Campus, Northern Virginia
17,697,000
Virginia Community Coll System Construct phase IV building and
replace exterior panels on existing
building, Parham Campus,
J. Sargeant Reynolds 13,905,000
Virginia Community Coll System Construct science laboratory
building, Lord Fairfax 11,828,000
Virginia Community Coll System Install fire suppression system,
main academic building,
Piedmont Virginia 235,000
Virginia Community Coll System Renovate academic and administrative
facilities, Thomas Nelson 3,290,000
Virginia Community Coll System Renovate instructional buildings,
Wytheville 2,248,000
Virginia Community Coll System Renovate instructional labs,
John Tyler 4,750,000
Virginia Community Coll System Renovate Learning Resource Center
and West Hall, Patrick Henry 4,194,000
Virginia Community Coll System Renovate science building,
Annandale Campus,
Northern Virginia 9,600,000
Virginia Community Coll System Renovate South Campus,
Virginia Western 2,102,000
Virginia Community Coll System Repair or replace major
mechanical systems at Blue Ridge,
Northern Virginia, Rappahannock,
Thomas Nelson and Virginia Highlands
Community Colleges 7,684,000
Virginia Community Coll System Replace exterior doors and windows,
Thomas Nelson 974,000
Virginia Institute of
Marine Science Construct Marine Research
Building Complex 24,982,000
Southwest Virginia Higher
Education Center Construct Southwest Virginia Higher
Education Center Addition 2,100,000
$608,190,000
The General Assembly hereby finds and determines that the estimated useful life of the capital projects described above is in excess of twenty-one years.
To the extent that the cost of any capital project is less than the amount allocated to such capital project, the Governor or the Governor’s designee may increase the amount allocated to any other project included herein. No allocation to a capital project may be increased until it has been demonstrated to the satisfaction of the Governor or the Governor’s designee that (i) the cost of the capital project has been reduced to the extent reasonable, (ii) the capital project has not been expanded or enhanced beyond that originally approved, and (iii) the capital project is suitable and adequate for the scope originally intended. No increase in the amount allocated to any capital project shall constitute an authorization for the issuance of bonds in an amount in excess of the aggregate amount authorized hereunder.
§ 4. Application of Proceeds. Proceeds (including any premium) of the bonds and any BANs (except the proceeds of (i) bonds the issuance of which has been anticipated by BANs, (ii) refunding bonds and (iii) refunding BANs) shall be deposited by the State Treasurer in a special capital outlay fund in the state treasury and shall be disbursed only for the purpose for which the bonds or any BANs have been issued. In the event that the proceeds of the bonds or BANs exceed the cost of the projects specified in § 3, the Treasury Board shall cause such excess proceeds to be applied to the retirement of bonds or BANs. The proceeds of (a) bonds the issuance of which has been anticipated by BANs, (b) refunding bonds and (c) refunding BANs and any funds provided by the General Assembly, or available from any other source, for the purpose, shall be used to pay such BANs, refunded bonds and refunded BANs.
The proceeds of the bonds and any refunding bonds or BANs are hereby appropriated for disbursement from the state treasury for the current biennium pursuant to Article X, Section 7 of the Constitution of Virginia, and § 2.2-1819 of the Code of Virginia. The general conditions and general provisions of the general appropriation act enacted pursuant to Chapter 15 (§ 2.2-1500 et seq.) of Title 2.2 of the Code of Virginia, in effect from time to time, and all of the terms and conditions contained therein shall apply to the capital projects listed in § 3. The Governor or his designee is hereby authorized to increase the appropriation for any project listed in § 3 by the amount of the proceeds of donations, gifts, grants or other nongeneral funds paid into the state treasury in excess of such appropriation.
§ 5. Details, sale of bonds and BANs. The bonds shall be dated, shall mature at such time or times not exceeding twenty-one years from their date or dates and may be made redeemable before their maturity or maturities at such price or prices or within such price parameters, all as may be determined by the Treasury Board, by and with the consent of the Governor. The principal of the bonds shall be amortized, by payment into a sinking fund or otherwise, in annual installments. The first annual installment of principal of the bonds shall become due not later than one-tenth of the term of the bonds, and no installment of principal of the bonds shall be more than twice the smallest previous installment. Any such sinking fund shall not be appropriated for any other purpose.
The bonds shall be in such form, shall bear interest at such rate or rates, either at fixed rates or at rates established by formula or other method, and may contain such other provisions, all as the Treasury Board or the State Treasurer, when authorized by the Treasury Board, may determine. The principal of and premium, if any, and interest on the bonds and BANs shall be payable in lawful money of the United States of America. Bonds and BANs may be certificated or uncertificated as determined by the Treasury Board. The Treasury Board may contract for services of such registrars, transfer agents, or other authenticating agents as it deems appropriate to maintain a record of the persons entitled to the bonds and BANs. Bonds and BANs may be issued under a system of book entry for recording the ownership and transfer of ownership of rights to receive payments on the bonds and BANs. The Treasury Board shall fix the denomination or denominations of the bonds and the place or places of payment of principal, premium, if any, and interest, which may be at the office of the State Treasurer or at any one or more banks or trust companies within or without the Commonwealth.
The Treasury Board may sell the bonds and any BANs in such manner, either by competitive bidding, negotiated sale or private placement, and for such price as it may determine, by and with the consent of the Governor, to be in the interest of the Commonwealth.
In the discretion of the Treasury Board, bonds and BANs may be issued at one time or in part from time to time and may be issued and sold at the same time with other general obligation bonds and bond anticipation notes, respectively, of the Commonwealth authorized pursuant to Article X, Section 9(a)(3), (b) or (c) of the Constitution of Virginia, either as separate issues, as a combined issue designated “Commonwealth of Virginia General Obligation Bonds [Bond Anticipation Notes], Series 20....,” or as a combination of both. The bonds and BANs shall be signed on behalf of the Commonwealth by the Governor and by the State Treasurer, or shall bear their facsimile signatures, and shall bear the lesser seal of the Commonwealth or a facsimile thereof. In the event that the bonds or BANs bear the facsimile signature of the State Treasurer, they shall be signed by such administrative assistant as the State Treasurer shall determine or by such registrar or paying agent as may be designated to sign them by the Treasury Board. If any officer whose signature or facsimile signature shall appear on any bonds or BANs shall cease to be such officer before the delivery, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery, and any bond or BAN may bear the facsimile signature of, or may be signed by, such persons as at the actual time of the execution are the proper officers to sign such bond or BAN although, at the date of such bond or BAN, such persons may not have been such officers.
§ 6. Refunding. The Treasury Board is hereby authorized, by and with the consent of the Governor, to sell and issue, at one time or from time to time, refunding bonds and BANs of the Commonwealth, to refund any or all of the bonds and BANs, respectively, issued under this act or otherwise pursuant to Article X, Section 9(b) of the Constitution of Virginia. Refunding bonds and BANs may be issued in a principal amount up to the amount necessary to pay at maturity or redeem the bonds and BANs to be refunded and pay all issuance costs and other financing expenses of the refunding. Such refunding bonds and BANs may be issued whether or not the bonds or BANs to be refunded are then subject to redemption. Any escrow or trust fund established with the proceeds from the sale of refunding bonds shall be irrevocably pledged to the payment of the bonds to be refunded, and shall be used solely to pay such bonds or BANs at maturity or upon redemption or for the purchase of not less than all of the bonds or BANs to be refunded. Any such escrow or trust fund shall constitute a special fund for the payment of such refunded bonds or BANs, and such refunded bonds or BANs, to the extent of amounts, including the maturity amounts of investments, set aside for the payment thereof in such escrow or trust fund, shall not be included for the purposes of determining any limitations upon the amount of bonded indebtedness of the Commonwealth that may be incurred pursuant to Article X, Section 9(b) of the Constitution of Virginia. The Treasury Board may, however, direct that the interest received from the investment of the proceeds of the bonds or any BANs be transferred to the general fund of the state treasury.
§ 7. Investments and Contracts.
A. Pending the application of the proceeds of the bonds or BANs (including refunding bonds and BANs) to the purpose for which they have been authorized and the application of funds set aside for the purpose to the payment of bonds or BANs, they may be invested by the State Treasurer in securities that are legal investments under the laws of the Commonwealth for public funds and sinking funds, as the case may be. Whenever the State Treasurer receives interest from the investment of the proceeds of bonds or any BANs, such interest shall become a part of the principal of the bonds or any BANs and shall be used in the same manner as required for principal of the bonds or BANs.
B. The Commonwealth may enter into any contract or other arrangement that is determined to be necessary or appropriate to place the obligation or investment of the Commonwealth, as represented by bonds, BANs or investments, in whole or in part, on the interest rate, cash flow or other basis desired by the Commonwealth. Such contract or other arrangement may include, without limitation, contracts commonly known as interest rate swap agreements, and futures or contracts providing for payments based on levels of, or changes in, interest rates. These contracts or arrangements may be entered into by the Commonwealth in connection with, or incidental to, entering into, or maintaining any (i) agreement that secures bonds or BANs or (ii) investment, or contract providing for investment, otherwise authorized by law. These contracts and arrangements may contain such payment, security, default, remedy, and other terms and conditions as determined by the Commonwealth, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by any nationally recognized rating agency, and any other criteria as may be appropriate. The determinations referred to in this paragraph may be made by the Treasury Board or any public funds manager with professional investment capabilities duly authorized by the Treasury Board to make such determinations.
C. Any money set aside and pledged to secure payments of bonds, BANs or any of the contracts entered into pursuant to this section may be invested in accordance with paragraph A of this section and may be pledged to and used to service any of the contracts or other arrangements entered into pursuant to paragraph B of this section.
§ 8. Security for bonds and BANs. The full faith and credit of the Commonwealth are hereby irrevocably pledged for the payment of the principal of and the interest on bonds and (unless the Treasury Board, by and with the consent of the Governor, shall provide otherwise) BANs issued under this act. The proceeds of (i) bonds the issuance of which has been anticipated by BANs, (ii) refunding bonds and (iii) refunding BANs are hereby irrevocably pledged for the payment of principal of and interest and any premium on such bonds or BANs to be refunded thereby. In addition, the Treasury Board may pledge the full faith and credit of the Commonwealth for the payment of the principal of and interest on any BANs. If sufficient funds are not appropriated in the general appropriations act for any fiscal year for the timely payment of the principal of and the interest on the bonds, any refunding bonds or any BANs where the full faith and credit of the Commonwealth has been pledged, there shall be set apart by direction of the Governor, from the first general fund revenues received during such fiscal year and thereafter, a sum sufficient to pay such principal and interest.
§ 9. Expenses. All expenses incurred under this act shall be paid from the proceeds of the bonds or any refunding bonds or BANs or from any other available funds as the Treasury Board shall determine.
§ 10. Exemption of interest from tax. The bonds and BANs issued under the provisions of this act, their transfer, and the income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation by the Commonwealth and by any political subdivision thereof. The interest on the bonds and any refunding bonds or BANs may be subject to inclusion in gross income of the holders thereof for federal income tax purposes.
§ 11. Referendum. The question of the effectiveness of this act and the authorization of the bonds shall be submitted to the qualified voters of the Commonwealth at the general election to be held on Tuesday, November 5, 2002. Notice of the election shall be given, the ballots shall be prepared, distributed and voted, and the results thereof ascertained and certified in accordance with Title 24.2 of the Code of Virginia, relating to special elections. The ballots to be used at the election shall pose the question in substantially the following form:
"QUESTION: Shall Chapter ___, Acts of the General Assembly of 2002, authorizing the issuance of general obligation bonds of the Commonwealth of Virginia in the maximum amount of $608,190,000 pursuant to Article X, Section 9(b) of the Constitution of Virginia for capital projects for educational facilities, take effect?"
The State Board of Elections shall cause to be sent to the electoral boards of each county and city sufficient copies of the full text of this act and the question contained herein for the officers of election to post in each polling place on election day. The State Board of Elections shall without delay make out and transmit to the Governor and to the Treasury Board an official copy of the report of the whole number of votes cast at the election for and against the act, certified by it.
If a majority of those voting thereon shall vote in favor of this act, this act shall take effect and the bonds may be issued as hereinabove provided. If a majority of those voting thereon shall vote against this act, this act shall not take effect and the bonds shall not be issued.
The expenses incurred in conducting this election shall be defrayed as in the case of election of members of the General Assembly.
§ 12. Severability. The provisions of this act or the application thereof to any person or circumstance that are held invalid shall not affect the validity of other provisions or applications of this act that can be given effect without the invalid provisions or applications.