Senate Bill No. 123
(By Senator Tomblin, Mr. President)
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[Introduced January 14, 2004; referred to the Committee on
Finance.]
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A BILL to amend and reenact §29-22-18
of the code of West Virginia,
1931, as amended; and to amend said code by adding thereto a
new section, designated §31-15-6c
, all relating to creating a
capitol renovation and improvement debt service fund;
providing for the construction and financing of renovations to
and improvement of the existing capitol complex and its
appurtenant facilities; and authorizing the issuance of bonds
by the West Virginia economic development authority to finance
the construction of capital improvements and renovations to
the existing capitol complex and its appurtenant facilities.
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; and that said code be amended by adding
thereto a new section, designated §31-15-6c
, all to read as
follows:
CHAPTER 29. DIVISION OF CULTURE AND HISTORY.
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 hereby 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 January,
two thousand two, through the thirtieth day of June, two thousand
three, 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 two hundred fifty
thousand dollars. On a monthly basis, the director shall report to
the joint committee on government and finance of the Legislature
any surplus in excess of two hundred fifty thousand dollars and
remit to the state treasurer the entire amount of those surplus
funds in excess of two hundred fifty thousand dollars 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, and 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, 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, after satisfying the requirements for
funds dedicated to the capitol complex improvement and renovation
debt service fund in subsection (j) of this section to retire the
bonds authorized to be issued pursuant to section six-c, article
fifteen, chapter thirty-one of this code, 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 (j) (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 (k) (l) of this section. No transfer
to any account other than the school building debt service account,
the education, arts, sciences and tourism debt service fund, the
economic development project fund created under section eighteen-a,
article twenty-two, chapter twenty-nine of this code, the capitol
complex improvement and renovation debt service fund 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 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 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 and the state building commission which
are secured by net profits.
(g) There is hereby 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 the first day of April, one
thousand nine hundred ninety-four, 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 one million eight hundred thousand
dollars, 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 eighteen
million dollars. 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
twenty-seven million dollars 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 twenty-eighth day of July, one
thousand nine hundred ninety-six, 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 the first day of April, one thousand nine hundred
ninety-six, as certified to the lottery director in accordance with
the provisions of that section. In no event may the monthly amount
allocated exceed one million dollars 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 ten million dollars. 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 fifteen
million dollars annually, may be granted by the state building
commission in favor of the bonds it issues which are secured by the
net lottery profits.
When the bonds, secured by profits from the lottery and
deposited in the education, arts, sciences and tourism debt service
fund, mature, the profits shall become available for debt service
on additional bonds as a second priority from the net profits of
the lottery.
(j) Beginning on or before the twenty-eighth day of July, two
thousand four, 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 capitol complex improvement and renovation debt
service fund created pursuant to the provisions of section six-c,
article fifteen, chapter thirty-one of this code, as a fourth
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 the first day of April, two thousand four, as certified to
the lottery director in accordance with the provisions of that section. In no event may the monthly amount allocated exceed two
hundred thousand dollars nor may the total allocation paid into the
capitol complex improvement and renovation 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 two million dollars. In the event there are
insufficient funds available in any month to transfer the amount
required pursuant to this subsection to the capitol complex
improvement and renovation 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
fourth-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 three and
one-half million dollars annually, may be granted by the economic
development authority in favor of the bonds it issues which are
secured by lottery profits.
When the bonds, secured by profits from the lottery and
deposited in the capitol complex improvement and renovation debt
service fund mature, the profits shall become available for debt
service on additional bonds as a fourth priority from the net
profits of the lottery.
(j) (k) There is hereby 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 such senior citizens medical
care and other programs as it considers beneficial to the citizens
of this state.
(k) (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.
CHAPTER 31. CORPORATIONS.
ARTICLE 15. WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY.
§31-15-6c. Special power of authority to issue bonds or notes to
finance capital improvements and renovations to state
capitol complex; creation of capitol complex
improvement and renovation debt service fund.
(a) The Legislature finds and declares:
(1) That the capitol complex and facilities appurtenant
thereto have deteriorated or are otherwise in need of new capital
improvements and renovations for the purpose of promoting
efficiency of governmental operations and for the enhancement of
tourism in the state;
(2) That construction of capital improvements and renovations
to the capitol complex and its appurtenant facilities requires that
the cost of such improvements and renovations be financed over
time; and that capital improvements and renovations cannot be
funded out of the current year appropriations of the Legislature;
(3) That the enacting of new taxes, or the diversion of
revenues from other essential departments and functions of
government, in order to support the cost of capital improvements
and renovations to the capital complex and its appurtenant
facilities is not in the interests of the people of the state
represented in the Legislature, and is specifically rejected by the
Legislature in its exercise of its legitimate constitutional
powers;
(4) That it is in the best interest of the people of the state
that the construction of capital improvements and renovations to
the capital complex and its appurtenant facilities be financed
through the issuance of bonds by the West Virginia economic
development authority and that debt service on such bonds be paid
from moneys available in the capitol improvement and renovation
fund as provided in this article.
(b) In order to provide for the financing of capital
improvements or renovations to the state capitol complex and its
appurtenant facilities, bonds of the authority may be issued in
accordance with the provisions of this article.
(c) There is hereby created a special revenue fund in the
state treasury, which is designated the "capitol complex
improvement and renovation debt service fund." Moneys deposited
into the fund shall be used to make payments of principal,
redemption premium, if any, and interest payments for bonds issued for the purposes set forth in this section. Separate accounts may
be established within the special revenue fund for the purpose of
identification of payment of specific obligations. The fund shall
consist of amounts transferred from the state lottery fund in the
manner set forth in subsection (j), section eighteen, article
twenty-two, chapter twenty-nine of this code. The authority may
further provide in the resolution and in the trust agreement for
priorities on the revenues paid into the capitol complex
improvement and renovation 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 article.
(d)For purposes of this article, "capitol complex" or "state
capitol complex" is defined as the facilities and improvements
comprising the buildings numbered one through seventeen located at
the main capitol campus in the city of Charleston, West Virginia,
as the same may be expanded from time to time.
NOTE: The purpose of this bill is to provide financing for
the construction of capital improvements to, and renovation of the
state capitol complex and its appurtenant facilities. The bill
authorizes the issuance of bonds by the West Virginia Economic
Development Authority to finance the construction of capital
improvements to, and renovation of the state capitol complex; and
provides for the dedication and transfer of certain amounts from
the state lottery fund to the capitol complex improvement and
renovation debt service fund.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§31-15-6c is new; therefore, strike-throughs and underscoring have been omitted.
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