H. B. 113
(By Mr. Speaker, (Mr. Thompson) and Delegate Armstead)
[By Request of the Executive]
[Introduced May 31, 2009; referred to the
Committee on Finance.]
A BILL to amend and reenact §5-6-11a of the Code of West Virginia,
1931, as amended; to amend and reenact §18B-10-8 of said code;
and to amend and reenact §29-22-18 of said code, all relating
to bonds for certain higher education, tourism, and state
capital improvement projects; authorizing the State Building
Commission to issue the bonds; providing for bond amounts and
maturity; allocating bond proceeds; establishing procedures
for project selection; and authorizing the use of moneys in
the Community and Technical College Capital Improvement Fund
for certain capital improvement projects.
Be it enacted by the Legislature of West Virginia:
That §5-6-11a of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §18B-10-8 of said code be amended
and reenacted; and that §29-22-18 of said code be amended and
reenacted, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR.
ARTICLE 6. STATE BUILDINGS.
§5-6-11a. Special power of commission to transfer or expend bond
proceeds for capital improvements at institutions of
higher education, state parks, the capitol complex
and other state facilities; limitations; State
Building Commission authorized to issue revenue
bonds; fund created; use of funds to pay for
projects.
(a) The Legislature finds and declares that in order to
attract new business and industry to this state, to retain existing
business and industry providing the citizens of this state with
economic security and to advance the business prosperity and
economic welfare of this state it is necessary to promote adequate
higher education,
arts, sciences and tourism
and state facilities,
including infrastructure, for: (1) State-of-the-art educational
opportunities for all citizens of this state;
and (2) tourism
enhancements at state parks, the capitol complex
or other state
facilities or
other tourism sites throughout the state.
(3)
hands-on arts and sciences training for the youth of West Virginia;
and (4) programs using the performing arts as an educational tool
Therefore,
in order to promote education, arts, sciences and
tourism, the Legislature finds that public financial support should
be provided for constructing, equipping, improving and maintaining capital improvement projects
which promote education, arts,
sciences and tourism in this state for higher education, state
parks, the State Capitol Complex or other state facilities or
tourism sites.
(b) The State Building Commission shall, by resolution, in
accordance with the provisions of this article, issue revenue bonds
of the commission 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
after the amendment and reenactment of
this section by the first extraordinary session of the Legislature
in 2009 shall not exceed, in the aggregate,
one hundred million
dollars $150 million. Any revenue bonds issued on or after
January
1, 1996, the effective date of the amendments to this section by
the first extraordinary session of the Legislature in 2009
which
are secured by lottery proceeds shall mature at a time or times not
exceeding twenty-five 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 special fund provided
in this section for the payment.
(c) There is hereby created in the State Treasury a special
revenue fund named the "Education, Arts, Sciences and Tourism Debt
Service Fund" into which shall be deposited on and after July 1, 1996, the amounts specified in section eighteen, article
twenty-two, chapter twenty-nine of this code. On and after the
amendment and reenactment of this section by the first
extraordinary session of the Legislature in 2009, the fund shall be
renamed the "Education and Tourism Debt Service Fund". 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
commission may further provide in the resolution and 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.
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 this article. The Education arts, sciences
and Tourism Debt Service Fund shall be pledged solely for the
repayment of bonds issued pursuant to this section. On or prior to
May 1 of each year, commencing May 1, 1996 May 1, 2010, the
commission 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.
After the commission 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
(d) The commission shall expend $25 million sixty percent of
the bond proceeds, net of issuance costs, reserve funds and
refunding costs, from bonds issued on or after the effective date
of the amendments to this section by the first extraordinary
session of the Legislature in 2009 for
certified capital
improvement projects at state institutions of higher education.
For the purposes of certifying the projects which will receive
funds from the bond proceeds, a committee shall be established and
comprised of the Governor, or his or her designee, the secretary of
the Department of Administration, the secretary of the Department
of Education and the arts, the chancellor of the university of West Virginia board of trustees and the chancellor of the board of
directors of the state college system. The committee shall meet as
often as necessary and take recommendations from any source
whatever regarding the capital improvement projects at state
institutions of higher education. The committee shall meet within
forty-five days of the effective date of this section
. Prior to
making its recommendations, the committee shall conduct at least
two public hearings, one of which must be held outside of Kanawha
County. Notice of the time, place, date and purpose of the hearing
shall be published in at least one newspaper in each of the three
congressional districts at least fourteen days prior to the date of
the public hearing. The Higher Education Policy Commission shall
submit a proposed list of projects which will receive funds from
the bond proceeds to the Governor on or before September 15, 1996
January 1, 2010. the committee Thereafter, the Governor shall
certify to the commission a list of those capital improvement
projects at state institutions of higher education which will
receive funds from the proceeds of bonds issued pursuant to this
section. Once certified, the list may not thereafter be altered or
amended other than by legislative enactment.
(e) The commission shall expend up to twenty-six million
dollars from the proceeds of the bonds authorized by this section
to pay a portion of the costs of projects certified under this
subsection for development, maintenance or promotion of arts and sciences or constructing and equipping a center for arts and
sciences of West Virginia located on a site acquired for that
purpose. Any proceeds expended to pay a portion of project costs
to construct and equip a center for arts and sciences of West
Virginia shall not exceed forty percent of the total cost of the
project and permanent endowments for operation and maintenance, and
bond proceeds shall not be expended until sixty percent of the
total cost has been committed from sources other than bond
proceeds. For the purposes of certifying the projects which will
receive funds from the bond proceeds under this subsection, a
committee shall be established and comprised of the Governor, or
his or her designee, 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. The capitol building
commission shall select its representative within thirty days of
the effective date of this section. The committee shall meet as
often as necessary and take recommendations from any source
whatever regarding which projects should be certified. The
committee shall meet within forty-five days of the effective date
of this section. Prior to making its determination, the committee
shall conduct one public hearing on the projects to be certified under this subsection. Notice of the time, place, date and purpose
of the hearing shall be published in at least one newspaper in each
of the three congressional districts at least fourteen days prior
to the date of the public hearing. The committee shall make its
determination as to whether bond proceeds will be expended for the
purposes set forth in this subsection and the amount to be expended
for each project, on or before June 15, one thousand nine hundred
ninety-six. Thereafter, the decision may not be altered or amended
other than by legislative enactment. The commission is authorized
to acquire by purchase or lease real property to be used as the
site for a center for arts and sciences of West Virginia; and
notwithstanding the provisions of section seven of this article,
enter into a long-term lease agreement with a nonprofit corporation
organized under the laws of this state for operation and
maintenance of the center. The nonprofit corporation shall, as
consideration for any long-term lease agreement, complete the
construction and equipping of the center and demonstrate to the
satisfaction of the commission its financial ability to operate and
maintain the center during the term of the lease agreement. The
nonprofit corporation shall have at least nine members on its board
of directors which are appointed by the Governor with the advice
and consent of the Senate. Of the nine appointed members, three
shall be selected from each congressional district: Provided, That
none of the appointed members shall be a resident of Kanawha County. The members appointed by the Governor with the advice and
consent of the Senate shall serve on the board for three-year
staggered terms. Of the members first appointed by the Governor,
one from each congressional district will serve a three-year term,
one from each congressional district will serve a two-year term and
one from each congressional district shall serve a one-year term.
(f) (e) The commission shall expend the balance of the bond
proceeds of bonds issued on or after the effective date of the
amendments to this section by the first extraordinary session of
the Legislature in 2009
for certified projects at state parks, the
capitol complex or other state facilities or other tourism sites.
The committee established in subsection (e) of this section on or
before September 15, 1996 the committee
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 projects which will receive funds from the bond
proceeds to the Governor on or before January 1, 2010. Thereafter,
the Governor
shall certify to the commission on or before September
15, 1996, January 1, 2010, a list of those capital improvement
projects at state parks, the capitol complex or other state
facilities or other tourism sites which will receive funds from the proceeds of bonds issued pursuant to this section. The committee
shall meet as often as necessary and take recommendations from any
source whatever regarding the capital improvement projects at state
parks, the capitol complex or other tourism sites in this state.
The committee shall meet within forty-five days of the effective
date of this section.
Prior to making its recommendations, the
committee shall conduct at least two public hearings on the
projects to be certified under this subsection, one of which must
be held outside of Kanawha County. Notice of the time, place, date
and purpose of the hearing shall be published in at least one
newspaper in each of the three congressional districts at least
fourteen days prior to the date of the public hearing. Once
certified, the list may not thereafter be altered or amended other
than by legislative enactment.
CHAPTER 18B. HIGHER EDUCATION.
ARTICLE 10. FEES AND OTHER MONEY COLLECTED AT STATE INSTITUTIONS
OF HIGHER EDUCATION.
§18B-10-8. Collection; disposition and use of capital and
auxiliary capital fees; creation of special
capital and auxiliary capital improvements funds;
revenue bonds.
(a) This section and any rules adopted by the commission,
council or both, in accordance with this section and article
three-a, chapter twenty-nine-a of this code, governs the collection, disposition and use of the capital and auxiliary
capital fees authorized by section one of this article. The
statutory provisions governing collection and disposition of
capital funds in place prior to the enactment of this section
remain in effect.
(b)
Fees for full-time students. -- The governing boards shall
fix capital and auxiliary capital fees for full-time students at
each state institution of higher education per semester. For
institutions under its jurisdiction, a governing board may fix the
fees at higher rates for students who are not residents of this
state.
(c)
Fees for part-time students. -- For all part-time students
and for all summer school students, the governing boards shall
impose and collect the fees in proportion to, but not exceeding,
the fees paid by full-time students. Refunds of the fees may be
made in the same manner as any other fee collected at state
institutions of higher education.
(d) There is continued in the State Treasury a special capital
improvements fund and special auxiliary capital improvements fund
for each state institution of higher education and the commission
into which shall be paid all proceeds, respectively, of:
(1) The capital and auxiliary capital fees collected from
students at all state institutions of higher education pursuant to
this section; and
(2) The fees collected from the students pursuant to section
one of this article. The fees shall be expended by the commission
and governing boards for the payment of the principal of or
interest on any revenue bonds issued by the board of regents or the
succeeding governing boards for which the fees were pledged prior
to the enactment of this section.
(e) The governing boards may make expenditures from any of the
special capital improvements funds or special auxiliary capital
improvement funds established in this section to finance, in whole
or in part, together with any federal, state or other grants or
contributions, for any one or more of the following projects:
(1) The acquisition of land or any rights or interest in land;
(2) The construction or acquisition of new buildings;
(3) The renovation or construction of additions to existing
buildings;
(4) The acquisition of furnishings and equipment for the
buildings; and
(5) The construction or acquisition of any other capital
improvements or capital education facilities at the state
institutions of higher education, including any roads, utilities or
other properties, real or personal, or for other purposes
necessary, appurtenant or incidental to the construction,
acquisition, financing and placing in operation of the buildings,
capital improvements or capital education facilities, including student unions, dormitories, housing facilities, food service
facilities, motor vehicle parking facilities and athletic
facilities.
(f) The governing boards, in their discretion, may use the
moneys in the special capital improvements funds and special
auxiliary improvement funds to finance the costs of the purposes
set forth in this section on a cash basis. The commission, when
singly or jointly requested by the governing boards, periodically
may issue revenue bonds of the state as provided in this section to
finance all or part of the purposes and pledge all or any part of
the moneys in such special funds for the payment of the principal
of and interest on the revenue bonds, and for reserves for the
revenue bonds. Any pledge of the special funds for the revenue
bonds shall be a prior and superior charge on the special funds
over the use of any of the moneys in the funds to pay for the cost
of any of the purposes on a cash basis. Any expenditures from the
special funds, other than for the retirement of revenue bonds, may
be made by the commission or governing boards only to meet the cost
of a predetermined capital improvements program for one or more of
the state institutions of higher education, in the order of
priority agreed upon by the governing board or boards and the
commission and for which the aggregate revenue collections
projected are presented to the Governor for inclusion in the annual
budget bill, and are approved by the Legislature for expenditure.
(g) The revenue bonds periodically may be authorized and
issued by the commission or governing boards to finance, in whole
or in part, the purposes provided in this section in an aggregate
principal amount not exceeding the amount which the commission
determines can be paid as to both principal and interest and
reasonable margins for a reserve therefor from the moneys in the
special funds.
(h) The issuance of the revenue bonds shall be authorized by
a resolution adopted by the governing board receiving the proceeds
and the commission and the revenue bonds shall bear the date or
dates; mature at such time or times not exceeding forty years from
their respective dates; be in such form either coupon or
registered, with such exchangeability and interchangeability
privileges; be payable in such medium of payment and at such place
or places, within or without the state; be subject to such terms of
prior redemption at such prices not exceeding one hundred five per
centum of the principal amount thereof; and shall have the other
terms and provisions determined by the governing board receiving
the proceeds and the commission. The revenue bonds shall be signed
by the Governor and by the chancellor of the commission or the
chair of the governing boards authorizing the issuance thereof,
under the Great Seal of the State, attested by the Secretary of
State, and the coupons attached to the revenue bonds shall bear the
facsimile signature of the chancellor of the commission or the chair of the appropriate governing boards. The revenue bonds shall
be sold in the manner the commission or governing board determines
is for the best interests of the state.
(i) The commission or governing boards may enter into trust
agreements with banks or trust companies, within or without the
state, and in the trust agreements or the resolutions authorizing
the issuance of the bonds may enter into valid and legally binding
covenants with the holders of the revenue bonds as to the custody,
safeguarding and disposition of the proceeds of the revenue bonds,
the moneys in the special funds, sinking funds, reserve funds or
any other moneys or funds; as to the rank and priority, if any, of
different issues of revenue bonds by the commission or governing
boards under the provisions of this section; as to the maintenance
or revision of the amounts of the fees; as to the extent to which
swap agreements, as defined in subsection (h), section two, article
two-g, chapter thirteen of this code shall be used in connection
with the revenue bonds, including such provisions as payment, term,
security, default and remedy provisions as the commission shall
consider necessary or desirable, if any, under which the fees may
be reduced; and as to any other matters or provisions which are
considered necessary and advisable by the commission or governing
boards in the best interests of the state and to enhance the
marketability of the revenue bonds.
(j) After the issuance of any revenue bonds, the fees at the state institutions of higher education pledged to the payment
thereof may not be reduced as long as any of the revenue bonds are
outstanding and unpaid except under such terms, provisions and
conditions as shall be contained in the resolution, trust agreement
or other proceedings under which the revenue bonds were issued.
The revenue bonds are and constitute negotiable instruments under
the Uniform Commercial Code of this state; together with the
interest thereon, be exempt from all taxation by the State of West
Virginia, or by any county, school district, municipality or
political subdivision thereof; and the revenue bonds may not be
considered to be obligations or debts of the state and the credit
or taxing power of the state may not be pledged therefor, but the
revenue bonds shall be payable only from the revenue pledged
therefor as provided in this section.
(k) Additional revenue bonds may be issued by the commission
or governing boards pursuant to this section and financed by
additional revenues or funds dedicated from other sources. There
is hereby created in the State Treasury a special revenue fund
known as the Community and Technical College Capital Improvement
Fund into which shall be deposited the amounts specified in
subsection (j), section eighteen, article twenty-two, chapter
twenty-nine of this code. 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 the commission for community and
technical college capital improvements
or used on a cash basis for
community and technical college capital improvements or capital
projects.
(l) Funding of systemwide and campus-specific revenue bonds
under any other section of this code is continued and authorized
pursuant to the terms of this section. Revenues of any state
institution of higher education pledged to the repayment of any
revenue bonds issued pursuant to this code shall remain pledged.
(m) Any revenue bonds for state institutions of higher
education proposed to be issued under this section or other
sections of this code first must be approved by the commission.
(n) Revenue bonds issued pursuant to this code may be issued
by the commission or governing boards, either singly or jointly.
(o) Fees pledged for repayment of revenue bonds issued under
this section or article twelve-b, chapter eighteen prior to the
effective date of this section shall be transferred to the
commission in a manner prescribed by the commission. The
commission may transfer funds from the accounts of institutions
pledged for the repayment of revenue bonds issued prior to the
effective date of this section or issued subsequently by the
commission upon the request of institutions, if an institution
fails to transfer the pledged revenues to the commission in a
timely manner.
(p) Effective July 1, 2004, the capital and auxiliary capital
fees authorized by this section and section one of this article are
in lieu of any other fees set out in this code for capital and
auxiliary capital projects to benefit public higher education
institutions. Notwithstanding any other provisions of this code to
the contrary, in the event any capital, tuition, registration or
auxiliary fees are pledged to the payment of any revenue bonds
issued pursuant to any general bond resolutions of the commission,
any of its predecessors or any institution, adopted prior to the
effective date of this section, such fees shall remain in effect in
amounts not less than the amounts in effect as of that date, until
the revenue bonds payable from any of the fees have been paid or
the pledge of the fees is otherwise legally discharged.
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:
Provided, That for the period beginning the first day of the month
following the first passage of a referendum election held pursuant
to section seven, article twenty-two-c of this chapter and for
eighteen months thereafter, not more than seventeen percent of the
gross amount received from each lottery shall 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 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 and the Higher Education Policy Commission 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 the 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 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 that
section. 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 in favor of the bonds it issues which
are secured by the net lottery profits.
(j) Beginning on or before the 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. When the bonds secured by the profits
from the lottery and deposited in the Education
Arts, Sciences and
Tourism Debt Service Fund, as provided in subsection (i) of this section mature or are paid in full, the bonds issued by the Higher
Education Policy Commission for which lottery profits are pledged
as provided in this subsection shall be considered to have a
second-in-priority lien on the net profits deposited in the State
Lottery Fund.
(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 second 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 plans prior to the distribution of bond proceeds.
(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.
NOTE: The purpose of this bill is to reissue revenue bonds for
tourism and education and to provide a procedure for the selection
of projects to receive moneys resulting from such bonds.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.