SECTION 1. This Act may be referred to and cited as the “Arkansas State Department of Health Building Act”.
SECTION 2. There is hereby created and established a commission to be known as the “Arkansas State Department of Health Building Commission”, hereafter sometimes referred to as the “Commission”.
SECTION 3. The Commission shall consist of five (5) members. The State Health Officer shall be an ex officio member of the Commission and shall be Chairman. Four (4) members of the Commission shall be appointed by the Governor from resident electors of this State. The Commission shall designate a Secretary, who need not be a member of the Commission.
SECTION 4. Members of the Commission shall receive no pay for their services but, with respect to attendance at each regular or special meeting of the Commission, appointive members shall be entitled to Fifteen Dollars ($15.00) per diem, plus a mileage allowance for each mile traveled from his home to the place of meeting and return in the amount approved, from time to time, for State employees.
SECTION 5. The terms of office of the original members of the Commission so appointed by the Governor shall commence upon qualification after appointment and shall be arranged by the Governor in such manner that the term of one (1) of such members shall expire on the 14th day of January of each year, beginning with January 14, 1966. For each member appointed by the Governor for a regular term subsequent to the expiration of the term of the original member, the term of office shall commence on the 15th day of January following such expiration date and shall end on the 14th day of January of the fourth year following the year in which such regular term commenced. Any vacancies arising in the membership of the Commission so appointed by the Governor for any reason other than the expiration of the regular terms for which such members were appointed, shall be filled by appointment by the Governor, to be thereafter effective until the expiration of such regular term.
SECTION 6. The Commission is hereby authorized and empowered to:
SECTION 7. Meetings of the Commission shall be held on call by the Chairman or by any three or more members on advance notice to each member, at such place or places as may suit the Commission's convenience. Meetings of the Commission shall be open to the public, and records of the proceedings thereof shall be kept. A quorum for the transaction of business at any meeting shall consist of not less than three (3) members and the affirmative vote of three (3) members shall be requisite for the authorizing or approval of any action or the passage or adoption of any motion or resolution.
SECTION 8. The Chairman of the Commission shall be custodian of the State Department of Health Building, and shall be the Commission's disbursing agent and executive officer. The Commission may, by resolution duly adopted, delegate to the Chairman any of the powers or functions vested in or imposed upon it by this Act, and until such a resolution shall subsequently have been modified or rescinded, such delegated powers and functions may be exercised by the Chairman in the name of the Commission. The Chairman shall furnish bond to the State, with a corporate surety thereon, in the penal sum of Twenty Five Thousand Dollars ($25,000), conditioned that he will faithfully perform his powers, functions and duties and properly handle all funds received and disbursed by him and account therefor. An additional disbursing agent's bond shall not be required of the Chairman, and the bond so furnished shall be kept in the office of the Auditor of State. The premium on the bond shall be a proper charge against funds of the Commission.
SECTION 9. The State Department of Health Building after its completion shall house the State Board of Health, the State Health Officer, the State Department of Health divisions, and the divisions, units, agencies, officer and employees under the supervision thereof, and shall contain facilities for the proper conduct of the business of the State Board of Health, the State Department of Health, and such divisions, units, agencies, officers and employees thereof. In addition, the State Department of Health Building may house such others as space and facilities will permit from time to time.
SECTION 10. [Codified as 20-7-123.]
SECTION 11. (a) The Commission is hereby authorized and empowered to issue revenue bonds from time to time in the total aggregate principal amount of not to exceed Three Million Dollars ($3,000,000) and to use the proceeds thereof, together with any other available funds, for defraying the costs of the objects set forth in Section 6 thereof, together with all expenses incidental to and reasonably necessary in connection therewith, the expenses of the issuance of the bonds, and for providing for the creation of a reserve for contingencies to secure the payment of the bonds, if the Commission deems it necessary or desirable, and for providing for the payment of interest on bonds, if necessary, until sufficient funds are available therefor out of pledged revenues.
(b) Said revenue bonds shall be authorized by resolution of the Commission. All bonds to the total authorized principal amount may be issued at one time or, as determined by the Commission, in series from time to time, in which event the initial series shall be designated Series A and subsequent series shall be designated in alphabetical order. The bonds of each series shall rank on a parity as to lien on the revenues pledged for their payment and as to the security for their payment with the bonds of other series, regardless of date of issuance. The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only with interest coupons, or may be registrable as to both principal and interest without coupons, and may be made exchangeable for bonds of another denomination, which bonds of another denomination may in turn be either coupon bonds payable to bearer or coupon bonds registrable as to principal only, or bonds registrable as to both principal and interest without coupons; may be in such form and denomination; may have such date or dates; may be stated to mature at such times; may bear interest payable at such times and at such rate or rates, provided that no bonds of any series may bear interest at a rate or rates exceeding 4½% per annum; may be made payable at such places within or without the State of Arkansas; may be made subject to such terms of redemption in advance of maturity at such prices; and may contain such terms and conditions, all as the Commission shall determine. The bonds shall have the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration of ownership, as set forth above. The authorizing resolution may contain any other terms, covenants and conditions that are deemed desirable, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties and obligations of the Commission and of the holders and registered owners of the bonds as the Commission shall determine.
(c) Bonds issued hereunder shall be sold at public sale on sealed bids. Notice of the sale shall be published once a week for three (3) consecutive weeks in a newspaper published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale. The Commission shall pay no fiscal agent's fees in connection with the sale or issuance of the bonds. The bonds may be sold at such price as the Commission may accept, but in no event shall any bid be accepted which shall be less than par and accrued interest on the basis of the interest rate bid, nor shall any bid be accepted which specifies an interest rate in excess of 4½% per annum. The award, if made, shall be to the bidder whose bid results in the lowest net interest cost determined by computing the aggregate interest cost at the rate bid and deducting therefrom any premium. The bonds may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest upon such terms that the Commission receive no less and pay no more than it would receive and pay if the bonds were not converted and the conversion shall be subject to such conditions as shall be specified by the Commission and shall be subject to the approval of the Commission.
(d) Bonds issued hereunder shall be executed by the manual or facsimile signature of the Chairman of the Commission and by the manual signature of the Secretary of the Commission. The coupons attached to the bonds shall be executed by the facsimile signature of the Chairman of the Commission. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signature shall nevertheless be valid and sufficient for all purposes. The Commission shall adopt and use a seal in the execution and issuance of bonds authorized hereunder and each bond shall be sealed with the seal of the Commission.
SECTION 12. It shall be plainly stated on the face of each bond that the same has been issued under the provisions of this Act and bonds issued hereunder shall be general obligations only of the Commission, and in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged and the bonds shall not be secured by a mortgage or lien on any land or building belonging to the State of Arkansas. No member of the Commission shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this Act unless he shall have acted with a corrupt intent.
SECTION 13. The principal of, interest on and paying agent's fees in connection with all bonds issued under this Act shall be secured by a lien on and pledge of the fee revenues referred to in Section 10 of this Act and the gross revenues derived from the leasing or renting of space in the State Department of Health Building to others, herein collectively referred to as “pledged revenues”, and such pledged revenues are hereby specifically declared to be cash funds restricted in their use, and dedicated and to be used solely as provided in this Act. There is hereby created a fund designated “State Department of Health Revenue Bond Fund” to be maintained at such depository as shall be specified by the Commission, which fund shall be a trust fund and after the issuance of any bonds hereunder moneys therein shall be appropriated solely for the payment of the principal of, interest on and paying agent's fees in connection with the bonds at maturity and at redemption prior to maturity, except moneys that are withdrawn therefrom pursuant to the subsequent provisions hereof, all as shall be specified and subject to the terms and conditions set forth in the authorizing resolution of the Commission. The pledged revenues shall not be deposited into the State Treasury, but, as and when received, shall be deposited into the State Department of Health Revenue Bond Fund. On March 1, June 1, September 1 and December 1 of each year, if not required for paying the principal of, interest on, and paying agent's fees in connection with the bonds as the same become due, there shall be released from the pledged revenues and withdrawn from the State Department of Health Revenue Bond Fund and deposited, as a special revenue, to the credit of the Public Health Fund in the State Treasury, that amount of the pledged revenues equaling the sum of the following:
The Commission may, if it so desires, use any of the pledged revenues in the State Department of Health Revenue Bond Fund prior to the issuance of any bonds hereunder for defraying the costs of the objects set forth in Section 6 of this Act. The principal of, interest on and paying agent's fees in connection with the bonds shall be payable solely from the moneys in the State Department of Health Revenue Bond Fund and the moneys required by this Act to be deposited into the State Department of Health Revenue Bond Fund. The Commission is directed to insert appropriate provisions in the authorizing resolution for the investing and reinvesting of moneys in the State Department of Health Revenue Bond Fund in short term direct obligations of the United States of America having maturity dates not later than the date that the moneys therein will be needed for the authorized purposes and all income derived from such investments shall be and become a part of the State Department of Health Revenue Bond Fund.
SECTION 14. All officers, departments, agencies and commissions of the State of Arkansas are hereby expressly authorized to execute and enter into Lease Agreements with the Commission for the leasing of space in the State Department of Health Building when there is space therein over and above the requirements of the State Board of Health, the State Health Officer, the State Department of Health, and the divisions, units, agencies, officers and employees required by this Act to be housed therein. Such Lease Agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the Commission and the particular State Officer, department, agency or commission to be appropriate and in the best interests of all concerned. All such Lease Agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor department, agency or commission performing the functions exercised by the department, agency or commission executing the Lease Agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforcible by mandamus or other appropriate proceedings at law or in equity.
SECTION 15. Each resolution authorizing the issuance of bonds under this Act shall, together with this Act, constitute a contract by and between the Commission and the holders and registered owners of the bonds issued hereunder, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict accordance with the terms and provisions thereof, and the covenants, agreements and obligations of the Commission may be enforced by mandamus or other appropriate proceedings at law or in equity.
SECTION 16. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and this exemption shall include income, inheritance and estate taxes.
SECTION 17. The Board of Trustees of any retirement system now existing or hereafter created by the General Assembly of the State of Arkansas may, in its discretion, invest its funds in bonds issued under the provisions of this Act.
SECTION 18. The agency of the State authorized by law to audit the records and accounts of the various State agencies is hereby authorized and directed to audit the records and accounts of the Commission and to furnish a copy of the report thereof to the Commission.
SECTION 19. The Commission is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the construction of the State Department of Health Building and to supervise and inspect such construction. After the Commission shall have approved the plans and specifications prepared by the architect, it shall proceed to advertise for bids and contract for the construction and equipping of the State Department of Health Building in accordance with applicable laws governing the constructing and equipping of public buildings. In addition, the Commission is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it to effectively carry out the functions, powers and duties conferred and imposed upon it by this Act.
SECTION 20. The Commission shall include necessary provisions in the authorizing resolution to require the deposit of the proceeds of the bonds (except the accrued interest) into a special construction fund which shall be a trust fund in such depository as the Commission shall designate, which depository shall be a member of the Federal Deposit Insurance Corporation and all moneys in said construction fund in excess of the amount insured by the Federal Deposit Insurance Corporation must be secured by direct obligations of the United States of America, unless invested as hereafter provided. The accrued interest received by the Commission at the delivery of the bonds shall be deposited into the State Department of Health Revenue Bond Fund. The moneys in said construction fund shall be used solely as specified in Section 11 (a) hereof. The Commission shall include appropriate provisions in the authorizing resolution pertaining to the investing and reinvesting of moneys in said construction fund in short term direct general obligations of the United States of America and all income derived from such investments shall be deemed to constitute and be a part of said construction fund.
SECTION 21. Sole and complete jurisdiction and authority is hereby vested in the Commission to hold, deal with and dispose of the present State Department of Health building (called “present health building”). The Commission is hereby authorized and directed to take the necessary steps to either sell the present health building to another agency or department of the State of Arkansas upon such terms as shall be mutually agreeable to the parties involved or to lease all or portions of the present health building and space therein to other agencies and departments of the State of Arkansas upon such terms as shall be mutually agreeable to the parties involved. In this regard, all other agencies and departments of the State of Arkansas are hereby expressly authorized to execute and enter into necessary contracts and agreements, including lease agreements, with the Commission for the acquisition of or the leasing of space in the present health building.
SECTION 22. [Codified as 20-7-123n.]
SECTION 23. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or, things.
SECTION 24. This Act shall not create any right of any character, and no right of any character shall arise under or pursuant to it, unless and until the bonds authorized by this Act, or Series A in the event the bonds are delivered in series, shall have been actually sold and delivered by the Commission.
SECTION 25. The provisions of this Act are hereby declared to be severable. If any section, paragraph, sentence or clause of this Act shall be held unconstitutional or invalid, the invalidity of such section, paragraph, sentence or clause shall not affect the validity of the remainder of the Act.
SECTION 26. All acts and portions thereof in conflict herewith are hereby repealed to the extent of such conflict.
SECTION 27. It is hereby found and declared by the General Assembly that the present building is wholly inadequate to house the State Board of Health, the State Health Officer, the State Department of Health and the divisions, units, agencies, officers and employees thereof, with the result that it is impossible to properly and efficiently carry out functions and duties required by law; that because of such inadequacy the State is not having its health and related needs properly taken care of, all of which is to the detriment of the public health, safety and welfare; and that only by the immediate operation of this Act can these conditions be alleviated. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval. APPROVED: March 20, 1965.