Enrolled Version - Final Version
Senate Bill 612 History
OTHER VERSIONS -
Introduced Version
|
|
Email
Key: Green = existing Code. Red = new code to be enacted
ENROLLED
Senate Bill No. 612
(By Senators Plymale, Unger, Bowman, D. Facemire,
Minard, Snyder, Kessler, Wells, Yost, Jenkins and Prezioso)
____________
[Passed March 13, 2010; in effect from passage.]
____________
AN ACT to amend and reenact §29-22-18 of the Code of West Virginia,
1931, as amended; to amend said code by adding thereto a new
section, designated §29-22-18c; and to amend and reenact
§31-15-16a of said code, all relating to funding of higher
education capital projects; authorizing the Governor to
certify certain revised lists of capital improvement projects;
authorizing the Economic Development Authority to issue bonds
in certain amounts and for certain purposes; specifying that
the Economic Development Authority may grant second-in-
priority and third-in-priority liens on proceeds of the State
Lottery Fund up to a certain amount in favor of the bonds;
increasing the amount paid annually to the Higher Education
Improvement Fund from $10 million to $15 million; and making other technical corrections.
Be it enacted by the Legislature of West Virginia:
That §29-22-18 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that said code be amended by adding
thereto a new section, designated §29-22-18c; and that §31-15-16a
of said code be amended and reenacted, all to read as follows:
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18. State Lottery Fund; appropriations and deposits; not
part of general revenue; no transfer of state funds
after initial appropriation; use and repayment of
initial appropriation; allocation of fund for
prizes, net profit and expenses; surplus; State
Lottery Education Fund; State Lottery Senior
Citizens Fund; allocation and appropriation of net
profits.
(a) There is continued a Special Revenue Fund in the State
Treasury which shall be designated and known as the State Lottery
Fund. The fund consists of all appropriations to the fund and all
interest earned from investment of the fund and any gifts, grants
or contributions received by the fund. All revenues received from
the sale of lottery tickets, materials and games shall be deposited
with the State Treasurer and placed into the State Lottery Fund. The revenue shall be disbursed in the manner provided in this
section for the purposes stated in this section and shall not be
treated by the Auditor and Treasurer as part of the general revenue
of the state.
(b) No appropriation, loan or other transfer of state funds
may be made to the commission or Lottery Fund after the initial
appropriation.
(c) A minimum annual average of forty-five percent of the
gross amount received from each lottery shall be allocated and
disbursed as prizes.
(d) Not more than fifteen percent of the gross amount received
from each lottery may be allocated to and may be disbursed as
necessary for fund operation and administration expenses.
(e) The excess of the aggregate of the gross amount received
from all lotteries over the sum of the amounts allocated by
subsections (c) and (d) of this section shall be allocated as net
profit. In the event that the percentage allotted for operations
and administration generates a surplus, the surplus shall be
allowed to accumulate to an amount not to exceed $250,000. On a
monthly basis, the director shall report to the Joint Committee on
Government and Finance of the Legislature any surplus in excess of
$250,000 and remit to the State Treasurer the entire amount of
those surplus funds in excess of $250,000 which shall be allocated as net profit.
(f) After first satisfying the requirements for funds
dedicated to the School Building Debt Service Fund in subsection
(h) of this section to retire the bonds authorized to be issued
pursuant to section eight, article nine-d, chapter eighteen of this
code, then satisfying the requirements for funds dedicated to the
Education, Arts, Sciences and Tourism Debt Service Fund, in
subsection (i) of this section to retire the bonds authorized to be
issued pursuant to section eleven-a, article six, chapter five of
this code and section sixteen-a, article fifteen, chapter thirty-
one of this code, and then satisfying the requirements for funds
dedicated to the Community and Technical College Capital
Improvement Fund in subsection (j) of this section to retire the
bonds for community and technical college capital improvements
authorized to be issued pursuant to section eight, article ten,
chapter eighteen-b of this code, any and all remaining funds in the
State Lottery Fund shall be made available to pay debt service in
connection with any revenue bonds issued pursuant to section
eighteen-a of this article, if and to the extent needed for such
purpose from time to time. The Legislature shall annually
appropriate all of the remaining amounts allocated as net profits
in subsection (e) of this section, in such proportions as it
considers beneficial to the citizens of this state, to: (1) The Lottery Education Fund created in subsection (g) of this section;
(2) the School Construction Fund created in section six, article
nine-d, chapter eighteen of this code; (3) the Lottery Senior
Citizens Fund created in subsection (k) of this section; and (4)
the Division of Natural Resources created in section three, article
one, chapter twenty of this code and the West Virginia Development
Office as created in section one, article two, chapter five-b of
this code, in accordance with subsection (l) of this section. No
transfer to any account other than the School Building Debt Service
Fund, the Education, Arts, Sciences and Tourism Debt Service Fund,
the Community and Technical College Capital Improvement Fund, the
Economic Development Project Fund created under section eighteen-a,
article twenty-two, chapter twenty-nine of this code, or any fund
from which debt service is paid under subsection (c), section
eighteen-a of this article may be made in any period of time in
which a default exists in respect to debt service on bonds issued
by the School Building Authority, the State Building Commission,
the Higher Education Policy Commission, the Economic Development
Authority or which are otherwise secured by lottery proceeds. No
additional transfer may be made to any account other than the
School Building Debt Service Account and the Education, Arts,
Sciences and Tourism Debt Service Fund, and the Community and
Technical College Capital Improvement Fund, when net profits for the preceding twelve months are not at least equal to one hundred
fifty percent of debt service on bonds issued by the School
Building Authority, the State Building Commission, the Higher
Education Policy Commission and the Economic Development Authority
which are secured by net profits.
(g) There is continued a special revenue fund in the State
Treasury which shall be designated and known as the Lottery
Education Fund. The fund shall consist of the amounts allocated
pursuant to subsection (f) of this section, which shall be
deposited into the Lottery Education Fund by the State Treasurer.
The Lottery Education Fund shall also consist of all interest
earned from investment of the Lottery Education Fund and any other
appropriations, gifts, grants, contributions or moneys received by
the Lottery Education Fund from any source. The revenues received
or earned by the Lottery Education Fund shall be disbursed in the
manner provided below and may not be treated by the Auditor and
Treasurer as part of the general revenue of the state. Annually,
the Legislature shall appropriate the revenues received or earned
by the Lottery Education Fund to the state system of public and
higher education for these educational programs it considers
beneficial to the citizens of this state.
(h) On or before the twenty-eighth day of each month, as long
as revenue bonds or refunding bonds are outstanding, the lottery director shall allocate to the School Building Debt Service Fund
created pursuant to the provisions of section six, article nine-d,
chapter eighteen of this code, as a first priority from the net
profits of the lottery for the preceding month, an amount equal to
one tenth of the projected annual principal, interest and coverage
ratio requirements on any and all revenue bonds and refunding bonds
issued, or to be issued, on or after April 1, 1994, as certified to
the lottery director in accordance with the provisions of section
six, article nine-d, chapter eighteen of this code. In no event
shall the monthly amount allocated exceed $1.8 million nor may the
total allocation of the net profits to be paid into the School
Building Debt Service Fund, as provided in this section, in any
fiscal year exceed the lesser of the principal and interest
requirements certified to the lottery director or $18 million. In
the event there are insufficient funds available in any month to
transfer the amount required to be transferred pursuant to this
subsection to the School Debt Service Fund, the deficiency shall be
added to the amount transferred in the next succeeding month in
which revenues are available to transfer the deficiency. A lien on
the proceeds of the State Lottery Fund up to a maximum amount equal
to the projected annual principal, interest and coverage ratio
requirements, not to exceed $27 million annually, may be granted by
the School Building Authority in favor of the bonds it issues which are secured by the net lottery profits. When the school
improvement bonds, secured by profits from the lottery and
deposited in the School Debt Service Fund, mature, the profits
shall become available for debt service on additional school
improvement bonds as a first priority from the net profits of the
lottery or may at the discretion of the authority be placed into
the School Construction Fund created pursuant to the provisions of
section six, article nine-d, chapter eighteen of this code.
(i) Beginning on or before July 28, 1996, and continuing on or
before the twenty-eighth day of each succeeding month thereafter,
as long as revenue bonds or refunding bonds issued in accordance
with section eleven-a, article six, chapter five or section
sixteen-a, article fifteen, chapter thirty-one of this code are
outstanding, the lottery director shall allocate to the Education,
Arts, Sciences and Tourism Debt Service Fund, created pursuant to
the provisions of section eleven-a, article six, chapter five of
this code, as a second priority from the net profits of the lottery
for the preceding month, an amount equal to one tenth of the
projected annual principal, interest and coverage ratio
requirements on any and all revenue bonds and refunding bonds
issued, or to be issued, on or after April 1, 1996, as certified to
the lottery director in accordance with the provisions of section
eleven-a, article six, chapter five or section sixteen-a, article fifteen, chapter thirty-one of this code. In no event may the
monthly amount allocated exceed $1 million nor may the total
allocation paid into the Education, Arts, Sciences and Tourism Debt
Service Fund, as provided in this section, in any fiscal year
exceed the lesser of the principal and interest requirements
certified to the lottery director or $10 million. In the event
there are insufficient funds available in any month to transfer the
amount required pursuant to this subsection to the Education, Arts,
Sciences and Tourism Debt Service Fund, the deficiency shall be
added to the amount transferred in the next succeeding month in
which revenues are available to transfer the deficiency. A second-
in-priority lien on the proceeds of the State Lottery Fund up to a
maximum amount equal to the projected annual principal, interest
and coverage ratio requirements, not to exceed $15 million
annually, may be granted by the State Building Commission or the
Economic Development Authority in favor of the bonds issued in
accordance with section eleven-a, article six, chapter five or
section sixteen-a, article fifteen, chapter thirty-one of this
code.
(j) Beginning on or before July 28, 2008, and continuing on or
before the twenty-eighth day of each succeeding month thereafter,
as long as revenue bonds or refunding bonds are outstanding, the
lottery director shall allocate to the Community and Technical
College Capital Improvement Fund, created pursuant to section
eight, article ten, chapter eighteen-b of this code, as a third priority from net profits of the lottery for the preceding month,
an amount equal to one tenth of the projected annual principal,
interest and coverage ratio requirements on any and all revenue
bonds and refunding bonds issued or to be issued, on or after April
1, 2008, as certified by the lottery director in accordance with
the provisions of that section. In no event may the monthly amount
allocated exceed $500,000 nor may the total allocation paid to the
Community and Technical Capital Improvement Fund, as provided in
this section, in any fiscal year exceed the lesser of the principal
and interest requirements certified to the lottery director or $5
million. In the event there are insufficient funds available in
any month to transfer the amount required pursuant to this
subsection to the Community and Technical College Capital
Improvement Fund, the deficiency shall be added to the amount
transferred in the next succeeding month in which revenues are
available to transfer the deficiency.
(1) A third-in-priority lien on the proceeds of the State
Lottery Fund up to a maximum amount equal to the projected annual
principal, interest and coverage ratio requirements, not exceeding
$7.5 million annually, may be granted by the Higher Education
Policy Commission in favor of the bonds it issues which are secured
by the net lottery profits.
(2) When the community and technical college capital
improvement bonds secured by profits from the lottery and deposited
in the Community and Technical College Capital Improvement Fund mature, the profits shall become available for debt service on
additional community and technical college capital improvement
bonds as a third priority from the net profits of the lottery.
(3) The Council for Community and Technical College Education
shall approve all community and technical college capital
improvement projects prior to the distribution of bond proceeds.
(4) Prior to the issuance of community and technical college
revenue bonds pursuant to this subsection, the lottery director
shall transfer $5 million to the Community and Technical College
Improvement Fund, less any amounts needed for initial debt service
payments, to be used on a cash basis for community and technical
college capital improvements and capital projects.
(k) There is continued a special revenue fund in the State
Treasury which shall be designated and known as the Lottery Senior
Citizens Fund. The fund shall consist of the amounts allocated
pursuant to subsection (f) of this section, which amounts shall be
deposited into the Lottery Senior Citizens Fund by the State
Treasurer. The Lottery Senior Citizens Fund shall also consist of
all interest earned from investment of the Lottery Senior Citizens
Fund and any other appropriations, gifts, grants, contributions or
moneys received by the Lottery Senior Citizens Fund from any
source. The revenues received or earned by the Lottery Senior
Citizens Fund shall be distributed in the manner provided below and
may not be treated by the Auditor or Treasurer as part of the
general revenue of the state. Annually, the Legislature shall appropriate the revenues received or earned by the Lottery Senior
Citizens Fund to any senior citizens medical care and other
programs it considers beneficial to the citizens of this state.
(l) The Division of Natural Resources and the West Virginia
Development Office, as appropriated by the Legislature, may use the
amounts allocated to them pursuant to subsection (f) of this
section for one or more of the following purposes: (1) The payment
of any or all of the costs incurred in the development,
construction, reconstruction, maintenance or repair of any project
or recreational facility, as these terms are defined in section
four, article five, chapter twenty of this code, pursuant to the
authority granted to it under article five, chapter twenty of this
code; (2) the payment, funding or refunding of the principal of,
interest on or redemption premiums on any bonds, security interests
or notes issued by the parks and recreation section of the Division
of Natural Resources under article five, chapter twenty of this
code; or (3) the payment of any advertising and marketing expenses
for the promotion and development of tourism or any tourist
facility or attraction in this state.
§29-22-18c. Increase in allocation to Higher education Improvement
Fund from State Excess Lottery Revenue Fund.
Notwithstanding any provision of subsection (d), section
eighteen-a of this article to the contrary, the deposit of $10
million into the Higher Education Improvement Fund for Higher Education set forth above is for the fiscal year beginning July 1,
2009, only. For the fiscal year beginning July 1, 2010, and
subsequent fiscal years, the commission shall deposit $15 million
into the Higher Education Improvement Fund for Higher Education.
CHAPTER 31. CORPORATIONS.
ARTICLE 15. WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY.
§31-15-16a. Bonds for capital improvements at institutions of
higher education, state parks, the State Capitol
complex, other state facilities or tourism sites;
limitations; authority to issue revenue bonds; use
of funds to pay for projects.
(a)(1) The economic development authority shall, in accordance
with the provisions of this article, issue revenue bonds from time
to time, to pay for a portion of the cost of constructing,
equipping, improving or maintaining capital improvement projects
under this section or to refund the bonds, at the discretion of the
authority. The principal amount of the bonds issued under this
section shall not exceed, in the aggregate, an amount that, in the
opinion of the authority, is necessary to provide sufficient funds
for achievement of the purposes of this section and is within the
limits of moneys pledged for the repayment of the principal,
interest and redemption premium, if any, on any revenue bonds or
refunding bonds authorized by this section. Any revenue bonds
issued on or after the effective date of this section which are secured by lottery proceeds shall mature at a time or times not
exceeding thirty years from their respective dates. The principal
of, and the interest and redemption premium, if any, on the bonds
shall be payable solely from the Education, Arts, Sciences and
Tourism Debt Service Fund established in section eleven-a, article
six, chapter five and continued by this section.
(2) All amounts deposited in the fund shall be pledged to the
repayment of the principal, interest and redemption premium, if
any, on any revenue bonds or refunding revenue bonds authorized by
this section. The authority may further provide in the trust
agreement for priorities on the revenues paid into the Education,
Arts, Sciences and Tourism Debt Service Fund as may be necessary
for the protection of the prior rights of the holders of bonds
issued at different times under the provisions of this section or
section eleven-a, article six, chapter five of this code. The
bonds issued pursuant to this section shall be separate from all
other bonds which may be or have been issued from time to time
under the provisions of section eleven-a, article six, chapter five
of this code. The Education, Arts, Sciences and Tourism Debt
Service Fund shall be pledged solely for the repayment of bonds
issued pursuant to this section and section eleven-a, article six,
chapter five of this code. On or prior to May 1 of each year,
commencing May 1, 2010, the authority shall certify to the state
lottery director the principal and interest and coverage ratio
requirements for the following fiscal year on any revenue bonds or refunding revenue bonds issued pursuant to this section, and for
which moneys deposited in the Education, Arts, Sciences and Tourism
Debt Service Fund have been pledged, or will be pledged, for
repayment pursuant to this section.
(3) After the authority has issued bonds authorized by this
section, and after the requirements of all funds have been
satisfied, including coverage and reserve funds established in
connection with the bonds issued pursuant to this section, any
balance remaining in the Education, Arts, Sciences and Tourism Debt
Service Fund may be used for the redemption of any of the
outstanding bonds issued under this section which, by their terms,
are then redeemable or for the purchase of the outstanding bonds at
the market price, but not to exceed the price, if any, at which
redeemable, and all bonds redeemed or purchased shall be
immediately canceled and shall not again be issued.
(b) The authority shall expend sixty percent of the bond
proceeds, net of issuance costs, reserve funds and refunding costs,
for certified capital improvement projects at state institutions of
higher education. The Higher Education Policy Commission shall
submit a proposed list of capital improvement projects to the
Governor on or before January 1, 2010. Thereafter, the Governor
shall certify to the authority on or before February 1, 2010, a
list of those capital improvement projects at state institutions of
higher education that will receive funds from the proceeds of bonds
issued pursuant to this section.
At any time prior to the issuance of bonds under this
section, the Governor may certify to the authority a revised list
of capital improvement projects at state institutions of higher
education that will receive funds from the proceeds of bonds issued
pursuant to this section. The Governor shall consult with the
Higher Education Policy Commission prior to certifying a revised
list of capital improvement projects to the authority.
(c) The authority shall expend the balance of the bond
proceeds for certified projects at state parks, the capitol
complex, other state facilities or tourism sites.
(1) A committee comprised of the secretary of the Department
of Administration, the director of the Division of Natural
Resources, the director of the West Virginia Development Office and
a representative of the capitol building commission, other than the
secretary of the Department of Administration, who shall be
selected by the capitol building commission, shall submit a
proposed list of capital improvement projects to the Governor on or
before January 1, 2010. Thereafter, the Governor shall certify to
the authority on or before February 1, 2010, a list of those
capital improvement projects at state parks, the State Capitol
complex, other state facilities or tourism sites that will receive
funds from the proceeds of bonds issued pursuant to this section.
(2) At any time prior to the issuance of bonds under this
section, the Governor may certify to the authority a revised list
of capital improvement projects at state parks, the State Capitol Complex, other state facilities or tourism sites that will receive
funds from the proceeds of bonds issued pursuant to this section.
The Governor shall consult with the committee established by this
subsection prior to certifying a revised list of capital
improvement projects to the authority.