SECTION 1. This Act may be referred to and cited as the “Arkansas State Department of Health Building Expansion Act.”
SECTION 2. Whenever used in this Act, unless a different meaning clearly appears from the context:
“Act No. 469” means Act No. 469 of 1965.
“Agency” or “state agency” means any agency, board, officer, commission, department, division or institution of the State of Arkansas.
“Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this Act.
“1966 Bonds” means the Arkansas State Department of Health Building Commission Revenue Bonds, dated December 1, 1966, authorized by and issued under Act No. 469.
“Building” means the State Department of Health Building constructed and financed under the provisions of Act No. 469, including the Expansion.
“Commission” means the Arkansas State Department of Health Building Commission, established by Act No. 469.
“Construct” means to acquire, construct, reconstruct, remodel, install and equip any lands, buildings, structures, improvements, or other property, real, personal or mixed, useful in connection with the Expansion, and to make other necessary expenditures in connection therewith, by such methods and in such manner as may be authorized by law, and in the case of the acquisition of equipment and other property of a medical, laboratory or technical nature by such method as the Commission shall determine to be necessary or desirable to accomplish the power, purposes and authorities set forth in this Act and without regard to the provisions of other laws pertaining to the construction and acquisition of property by state agencies. The term “construct” also includes payment or provision for expenses incidental thereto.
“Division” means any division, bureau, section, office or officer of the Department of Health.
“Expansion” means any additions, extensions, or improvements to the Building and may include any necessary or appropriate remodeling and improvements to the present Building and its facilities, with appropriate equipment and furnishings, all as determined by the Commission.
“Fees” means the fees confirmed, ratified, fixed and imposed by this Act, as set forth in Section 6 of this Act.
“Fee revenues” means all revenues derived from the fees.
“Pledged revenues” means all revenues authorized by Section 9 of this Act to be pledged for the security and payment of the bonds, being fee revenues and gross revenues derived from the leasing or rental of space.
SECTION 3. In addition to the powers, purposes and authorities set forth elsewhere in this Act, the Arkansas State Department of Health Building Commission is hereby authorized and empowered to:
SECTION 4. (a) In addition to the powers, purposes and authorities conferred by this Act, the powers conferred by and the provisions contained in Act No. 469 except as they may be inconsistent with any of the provisions of this Act, are hereby confirmed, continued, ratified and reenacted, including without limitation the provisions of Act No. 469 pertaining to organization of the Commission, and meetings of the Commission. Members of the Commission may receive expense reimbursement in accordance with Arkansas Code 25-16-901 et seq.
(b) This Act shall constitute the sole authority necessary to accomplish the powers, purposes and authorities set forth herein. The powers, purposes and authorities set forth in this Act may be exercised by or on behalf of the Commission without necessity for the approval of any other agency of the State of Arkansas and without compliance with any other act or law pertaining to such powers, purposes or authorities.
SECTION 5. The Building, including after its completion the Expansion, shall house the Department of Health or such facilities and divisions thereof as the Department of Health shall determine. In addition, the Building and the Expansion may house such others as space and facilities will permit from time to time, as determined by the Commission.
SECTION 6. (a) The fees prescribed in Section 10 of Act 469 (as, in some cases, described in detail in the Vital Statistics Act of 1965, Act No. 471 of 1965, as amended) as now existing or as hereafter amended, are hereby confirmed, ratified, fixed and imposed.
(b) All fee revenues are hereby declared to be cash funds, and shall not be deposited in the Treasury, except as set forth in this Act, but shall be deposited in a bank or banks selected by the Commission. The fee revenues shall be collected and applied as in this Act provided until the principal of, premiums, if any, and interest on all bonds issued under this Act, with trustee's and paying agent's fees, shall be paid or adequate provision made for their payment; provided, however, particular fees may be varied as to amount or new fees substituted or added so long as there is no reduction in gross fee revenues that would have been collected had there been no such change, substitution or addition, and the term “fee revenues” includes the revenues derived from all such fees.
SECTION 7. (a) The Commission is hereby authorized and empowered to issue bonds, at one time or in series from time to time, and to use the proceeds thereof, together with any available funds, for financing the costs of constructing the Expansion, together with all expenses incidential to and reasonably necessary in connection therewith, the expenses of the issuance of the bonds, the creation and maintenance of reserves to secure the payment of the bonds, if the Commission deems it necessary or desirable, and for providing for the payment of interest on the bonds, if necessary or desirable, until sufficient funds are available therefor out of pledged revenues.
(b) The bonds shall be authorized by resolution of the Commission. The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only, or may be registrable as to both principal and interest; may contain such exchange provisions, may be in such form and denomination; may have such date or dates; may be stated to mature at such time or 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 10% 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 times and at such prices; and may contain such other terms and conditions, all as the Commission shall determine. The bonds shall have all 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 terms, covenants and conditions that are deemed necessary or desirable by the Commission, including without limitation, those pertaining to the creation and maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional series of bonds (and the priority of lien and pledge in that event) and the rights, duties and obligations of the Commission and of the holders and registered owners of the bonds, all as the Commission shall determine. The authorizing resolution may provide for the execution of a trust indenture, with a bank or trust company located within or without the State of Arkansas, containing the terms, covenants and conditions authorized by this Act.
(c) Bonds issued hereunder shall be sold at public sale on sealed bids. Notice of the sale shall be published in such publications within and/or without the State of Arkansas for such time or times, and information pertaining to the Act, the Commission and the bonds shall be prepared and distributed in such form and manner as to such prospective purchasers as the Commission shall determine to be best designed to obtain the most favorable bidding. The bonds may be sold at such price as the Commission may accept, but in no event shall any bid be accepted which results in an interest rate in excess of 10% per annum (treating the amount of any discount as interest). The award, if made, shall be to the bidder whose bid results in the lowest net interest cost, determined by computing the aggregrate interest cost at the rate bid and deducting the amount of any premium and adding the amount of any discount.
(d) Bonds outstanding hereunder shall not exceed $6,000,000 in principal amount.
(e) Bonds issued hereunder shall be executed by the Chairman of the Commission and the Secretary of the Commission (by manual or facsimile signatures with at least one manual signature). 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 signatures shall nevertheless be valid and sufficient for all purposes. Each bond shall be sealed with the seal of the Commission.
SECTION 8. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this Act. Bonds issued hereunder shall be 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 (as used in Amendment No. 20 of the Constitution of the State of Arkansas) are pledged. The bonds shall not be secured by a mortgage or lien on any land, building or property 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 or action taken in carrying out the powers, purposes or authorities of this Act unless he shall have acted with a corrupt intent.
SECTION 9. The principal of, premiums, if any, interest on, and trustee's 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 and the gross revenues derived from the leasing or renting to others of space in the Building (collectively the “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 Building Expansion Revenue Bond Fund” (the “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 applied solely for the payment of the principal of, premiums, if any, interest on, and trustee's 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 or trust indenture. The pledged revenues shall not be deposited into the State Treasury, but, as and when received, shall be deposited into the Bond Fund. On March 1, June 1, September 1 and December 1 of each year, if not required for paying the principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds, or for making deposits to required reserves, there shall be released from the pledged revenues and withdrawn from the 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:
Subject to any covenants any pledges in connection with any outstanding 1966 Bonds, the Commission may, if it so desires, use any of the pledged revenues in the Bond Fund prior to the issuance of any bonds hereunder for defraying the costs of accomplishing the powers, purposes and authorities of the Commission under this Act. The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds shall be payable solely from the moneys in the Bond Fund and the moneys required by this Act to be deposited into the Bond Fund. The Commission is directed to insert appropriate provisions in the authorizing resolution or trust indenture for the investing and reinvesting of moneys in the Bond Fund (in securities selected by the Commission), and all income derived from such investments shall be and become a part of the Bond Fund.
SECTION 10. All agencies are hereby expressly authorized to execute and enter into agreements with the Commission for the leasing or renting of space in the Building when there is space therein over and above the requirements of the Department of Health and the divisions thereof. Such 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 agency involved to be appropriate and in the best interest of all concerned. All such 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 agency performing the functions exercised by the agency executing the agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforceable by mandamus or other appropriate proceedings at law or in equity.
SECTION 11. Each authorizing resolution or trust indenture 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 12. 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 13. Any municipality, or any board, commission or other governing authority duly established by ordinance of any municipality, or the governing authorities, respectively, of the fireman's relief and pension fund and the policeman's pension and relief fund of any such municipality, or the governing authority of any retirement system created by the General Assembly of the State of Arkansas, or any agency may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this Act, shall be eligible to secure the deposit of public funds.
SECTION 14. The Commission is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the construction of the Expansion and to supervise and inspect such construction. 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 effectively to carry out the powers, purposes and authorities conferred and set forth in this Act.
SECTION 15. (a) Unless refunded or defeased as hereinafter authorized, the 1966 Bonds, so long as they are outstanding, shall be secured by a prior lien on and pledge of the fee revenues, and nothing herein shall be construed as impairing their security as authorized by Act No. 469 and as provided in the resolution of the Commission securing the 1966 Bonds.
(b) Subject to the above, the Commission is hereby authorized, in its discretion, to refund or defease the outstanding 1966 Bonds, as hereinafter provided, in which event the moneys, if any, in the construction fund established pursuant to the resolution authorizing the 1966 Bonds shall be transferred to the Construction Fund established pursuant to the provisions of this Act and the moneys in the bond fund established pursuant to the provisions of the resolution authorizing the 1966 Bonds (the “1966 Bond Fund”) shall be transferred to the Bond Fund established pursuant to the provisions of this Act. If the Commission determines so to proceed, the necessary additional principal amount of bonds to accomplish the refunding or defeasing shall be issued and proceeds thereof shall be applied by the Commission to the payment (principal, premiums, if any, interest and fees and expenses) of all of the outstanding 1966 Bonds at maturity or earlier redemption (as the Commission shall determine). The necessary moneys shall be deposited in trust in the bond fund established pursuant to the provisions of the resolution authorizing the 1966 Bonds. The Commission shall invest, or authorize the investment of, the moneys in the 1966 Bond Fund to the full extent feasible, as determined by the Commission, in direct or fully guaranteed obligations of the United States of America. All moneys in the 1966 Bond Fund shall be deemed to be cash funds, shall not be deposited in the State Treasury and shall be used for no other purpose than the payment of the principal, premiums, if any, interest and fees and expenses incurred in connection with the payment of the 1966 Bonds. Upon deposit in the 1966 Bond Fund of the moneys provided for herein, the 1966 Bonds shall be deemed to be paid, defeased and retired.
(c) The Commission shall include necessary provisions in the authorizing resolution for the bonds issued under this Act, or in the trust indenture, for deposit of the proceeds of the bonds (other than accrued interest which shall be deposited in the Bond Fund and the amount, if any, to be deposited pursuant to the provisions of subsection (b) of this Section 15) into a special Construction Fund (the “Construction Fund”) which shall be a trust fund maintained in such depository as the Commission shall designate. The moneys in the Construction Fund shall be used to carry out the powers, purposes and authorities of the Commission specified in this Act. The Commission shall include appropriate provisions in the resolution or trust indenture authorizing and securing the bonds governing the securing of and the investing and reinvesting of moneys in the Construction Fund (in such securities as shall be determined by the Commission to be appropriate and as shall be specified in the authorizing resolution of trust indenture).
SECTION 16. In the event of the refunding or defeasing of the 1966 Bonds as authorized by Section 15 hereof, Sections 11, 13 and 20 of Act No. 469 shall be repealed and of no further force and effect.
SECTION 17. 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 18. 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 the initial series, shall have been sold and delivered by the Commission.
SECTION 19. 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 20. All laws and portions thereof in conflict herewith are hereby repealed to the extent of such conflict.
SECTION 21. It is hereby found and declared by the General Assembly that the Building is inadequate to house the Department of Health and the divisions thereof, with the result that it is impossible properly and efficiently to carry out functions and duties required by law and required for the proper care of the public health of the inhabitants of the State, to the detriment of the public health and safety, and that only by the immediate operation of this Act can these conditions be bettered. 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 upon its passage and approval.