§ 13 — Department of Health Building Expansion Act of 1991 - Acts 1991, No. 1162

SECTION 1. This act shall be known as the "Department of Health Building Expansion Act of 1991." SECTION 2. As used in this act: (1) "Authority" means the Arkansas Development Finance Authority; (2) "Authorizing resolution" means the resolution or resolutions adopted by the board authorizing the loan; (3) "Board" means the State Board of Health of the State of Arkansas; (4) "Building" means the State Department of Health Building, located on West Markham Street in Little Rock, Arkansas, including the expansion; (5) "Construction Fund" means the State Board of Health 1991 Building Expansion Construction Fund created pursuant to this act; (6) "Director" or "State Health Officer" means the Director of the Arkansas Department of Health; (7) "Construct" or "or construction" means to acquire, construct, reconstruct, remodel, install and equip any lands, building, 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 board or the director 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 also includes payment or provision for expenses incidental thereto; (8) "Expansion" means the expansion and improvement of the building as provided for herein, including the renovation and alteration of existing properties, real, personal or mixed; (9) "Fees" means all fees set forth in Ark. Code Ann. 20-7-123 , which fees are confirmed and ratified by this act; (10) "Fee revenues" means all revenues derived from all or any of the fees; (11) "Loan" means the loan which the board is authorized to effect, from the authority, by the terms of this act; (12) "Revenue Fund" means the State Board of Health Fee Revenue Fund created pursuant to this act; (13) "Revenue Loan Fund" means the State Board of Health Fee Revenue Loan Fund created pursuant to this act. SECTION 3. (a) The expansion shall be constructed. The board is authorized to approve the construction of the expansion and to take such action as may be appropriate to the completion of the expansion and any facilities necessarily related thereto. (b) Subject to the approval of the board, the plans, specifications and estimates of cost for the expansion shall be approved by the director, and the director is authorized to employ such architects and such other like professional and technical assistance as determined to be necessary for the construction of the expansion. (c) The board and the director are authorized to take such action as may be appropriate for the construction of the expansion and to the accomplishment of the purposes of this act and may engage such legal, technical and other assistance as determined to be necessary to the construction of the expansion, the effecting of the loan and the accomplishment of the purposes of this act. SECTION 4. (a) To finance to construction of the expansion, the board is authorized to enter into a loan, from the authority, in the principal amount of not more than six million five hundred thousand dollars ($6,500,000), pursuant to Arkansas Code of 1987 Annotated, Title 15, Chapter 5. The amount and purpose of the loan shall be approved by the board in an authorizing resolution, copies of which shall be maintained in the records of the board and of the authority. (b) The loan shall bear interest at a rate determined by the rate of interest on funds borrowed by the authority to fund the loan, but not to exceed the lesser of ten percent (10%) per annum or the maximum rate of interest permitted by Amendment No. 60 to the Arkansas Constitution. (c) The loan shall mature over a period of not more than thirty (30) years. (d) The board and the director are authorized to execute and deliver such agreements, instruments and other undertakings and writings and to take such action as may be appropriate to evidence the loan and the security therefor and to carry out the purposes of this act. SECTION 5. The payment and other obligations of the board under and with respect to the loan shall be secured by a pledge of the fee revenues, subject to the terms of this act and the reserved power to release fee revenues as set forth in this act. The loan shall be an obligation of the board only and shall not constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged. The loan shall not be secured by a lien on any land, building or other property belonging to the State of Arkansas. The loan shall not constitute an indebtedness within the meaning of any constitutional or statutory limitation. SECTION 6. The fees set forth in Ark. Code Ann. 20-7-123 , which are the "fees" for all purposes of this act, are hereby confirmed and ratified. SECTION 7. (a) Commencing July 1, 1991, and so long as the loan is outstanding, all fee revenues shall be treated as cash funds and shall not be deposited in the State Treasury, except as set forth in this act, but shall be deposited, as and when received, in a bank or banks approved by the board or the director, in an account or accounts of the board designated "State Board of Health Fee Revenue Fund." All moneys in the Revenue Fund shall, commencing on the date set forth above and so long as the loan is outstanding, shall not be subject to the provisions of Arkansas Code of 1987 Annotated 19-4-801 through 806 and shall be deposited, handled and disbursed as set forth in this act. (b) Moneys held in the Revenue Fund shall, no less frequently than bimonthly, be withdrawn therefrom and deposited as follows and in the following order of priority: (1) An annual amount sufficient to provide for principal, interest, servicing fees (if any) and reserve requirements with respect to the loan, but not to exceed the sum of six hundred and fifty thousand dollars ($650,000) per fiscal year: (A) prior to the commencement of the loan, in the Construction Fund; or (B) beginning upon commencement of the loan, in an account or accounts of the board, in a bank or banks approved by the board or the director, designated "State Board of Health Fee Revenue Loan Fund"; (2) the sum of nine hundred thousand dollars ($900,000) per fiscal year to the Public Health Fund; (3) the sum of six hundred thousand ($600,000) per fiscal year to the State Health Building and Local Grant Trust Fund; (4) any balance remaining shall be distributed fifty percent (50%) to the Public Health Fund and fifty percent (50%) to the State Health Building and Local Grant Trust Fund. (c) Commencing July 1, 1991, and so long as the loan shall be outstanding, all funds held in the Revenue Fund, the Revenue Loan Fund and the Construction Fund shall be deemed to be cash funds, shall not be deposited in the State Treasury and shall be transferred, deposited and applied, as set forth herein, without the necessity of appropriation. All transfers from the Revenue Fund and the Construction Fund shall be made by the director. All transfers from the Revenue Loan Fund shall be made by the director or, with the approval of the director or the board, the authority. (d) So long as the loan is outstanding, funds held in the Revenue Loan Fund shall be used solely for the purpose of paying and providing for principal of, interest on and servicing fees, if any, in connection with the loan and providing for the creation and maintenance of necessary reserves. (e) So long as the loan is outstanding, all fees shall be imposed and all fee revenues shall be collected and applied as provided in this act; provided, however, particular fees may be reduced or eliminated so long as remaining fees are increased or new fees are added to the end that the aggregate annual amount of fee revenues shall always equal at least nine hundred thousand dollars ($900,000). SECTION 8. The proceeds of the loan, other than amounts required to establish required reserves, to pay interest on the loan for a period not to exceed one (1) year or to pay costs of the loan (all of which shall be set forth in written directions executed by the director) shall be deposited, as cash funds, in an account of the board designated "State Board of Health 1991 Building Expansion Construction Fund" and disbursed by the director for the construction of the expansion. SECTION 9. All moneys held at any time in the Revenue Fund, the Revenue Loan Fund and the Construction Fund shall, to the extent feasible, be invested and reinvested, as directed by the director, in direct obligations of or obligations fully guaranteed by the United States of America ("Government Obligations") or, with the approval of the authority, in mutual funds composed entirely of Government Obligations. SECTION 10. The authorizing resolution, and each agreement or other writing executed and delivered pursuant to it or this act, together with this act, shall constitute a contract between the board and the authority, and the obligations of the board may be enforced by mandamus or other equitable or legal remedy. The obligations of the board shall be freely assignable by the authority, provided that the board is notified in writing of any such assignment. SECTION 11. Neither the director nor any member of the board shall be personally liable on the loan or on account of any of the obligations or action undertaken in connection therewith or for any damages sustained by anyone with respect to any such obligations or action, unless he or she shall have acted with a corrupt intent. SECTION 12. All provisions of this act of a general and permanent nature are amendatory to the Arkansas Code of 1987 Annotated and the Arkansas Code Revision Commission shall incorporate the same in the Code. SECTION 13. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable. SECTION 14. All laws and parts of laws in conflict herewith, including, without limiting the generality of the foregoing, Act 469 of 1965 (other than Section 10 thereof), Act 686 of 1977 and Ark. Code Ann. 20-7-203(c) , are hereby repealed to the extent of such conflict. SECTION 15. It is hereby found and determined by the General Assembly that the Arkansas Department of Health is critically in need of additional space and that, accordingly, the expansion, which is authorized and enabled by this act, must be constructed as soon as feasible. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.

Legislative History

Acts 1991, No. 1162