Senate Bill No. 723
(By Senators Oliverio, Fanning, Unger, Plymale, Stollings and
Kessler)
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[Introduced March 23, 2009; referred to the Committee on
Education; and then to the Committee on Finance.]
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A BILL to amend and reenact §18C-7-7 of the Code of West Virginia,
1931, as amended; and to amend and reenact §29-22-18a of said
code, all relating to the PROMISE Scholarship generally;
increasing the limit on the amount of money the Legislature
can allocate from an annual increment of two percent to four
percent; and increasing funding from $27 million to $29
million.
Be it enacted by the Legislature of West Virginia:
That §18C-7-7 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that §29-22-18a of said code be
amended and reenacted, all to read as follows:
CHAPTER 18C. STUDENT LOANS; SCHOLARSHIPS AND STATE AID.
ARTICLE 7. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR
MAXIMIZING IN-STATE STUDENT EXCELLENCE SCHOLARSHIP PROGRAM.
§18C-7-7. West Virginia PROMISE Scholarship Fund created.
(a) The special revenue fund in the State Treasury designated
and known as the "PROMISE Scholarship Fund" is continued. The fund
consists of:
(1) All appropriations to the fund from the West Virginia
lottery, video lottery and taxes on amusement devices;
(2) All appropriations by the Legislature for the PROMISE
Scholarship Fund;
(3) Any gifts, grants or contributions received for the
PROMISE Scholarship Program; and
(4) All interest or other income earned from investment of the
fund.
(b) The allocations to the fund are subject to appropriation
by the Legislature. Nothing in this article requires any specific
level of funding by the Legislature nor guarantees nor entitles any
individual to any benefit or grant of funds.
(c) For the fiscal year beginning July 31, 2006, it is the
intent of the Legislature that the aggregate of the amount of
moneys transferred to the fund pursuant to section eighteen-a,
article twenty-two, chapter twenty-nine of this code, and such
other amounts of public moneys that may be transferred to the fund
by appropriation of the Legislature, shall equal but may not exceed
$40 million. For each fiscal year thereafter until and including the fiscal year ending June 30, 2011, it is the intent of the
Legislature that this aggregate be an amount
two four percent
greater than the aggregate established by this subsection for the
prior fiscal year. For the fiscal year beginning July 1, 2011, and
in each fiscal year thereafter, it is the intent of the Legislature
that this aggregate not exceed the aggregate established by this
subsection for the fiscal year beginning July 1, 2011.
(d) The board may expend the moneys in the fund to implement
the provisions of this article.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State Excess Lottery Revenue Fund.
(a) There is continued a special revenue fund within the State
Lottery Fund in the State Treasury which is designated and known as
the State Excess Lottery Revenue 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 under the provisions of sections ten-b
and ten-c, article twenty-two-a of this chapter and under article
twenty-two-b of this chapter, except the amounts due the commission
under subdivision (1), subsection (a), section one thousand four
hundred eight, article twenty-two-b of this chapter, shall be
deposited in the State Treasury and placed into the State Excess
Lottery Revenue 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 the State Treasurer as
part of the general revenue of the state.
(b) For the fiscal year beginning July 1, 2002, the commission
shall deposit: (1)$65 million into the subaccount of the State
Excess Lottery Revenue Fund hereby created in the State Treasury to
be known as the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) $10 million into the
Education Improvement Fund for appropriation by the Legislature to
the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (d) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $20 million
into the School Building Debt Service Fund created in section six,
article nine-d, chapter eighteen of this code for the issuance of
revenue bonds; (5) $40 million into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $5 million
into the State Park Improvement Fund for Park Improvements. For
the fiscal year beginning July 1, 2003, the commission shall
deposit: (1) $65 million into the General Purpose Account to be expended pursuant to appropriation of the Legislature; (2) $17
million into the Education Improvement Fund for appropriation by
the Legislature to the PROMISE Scholarship Fund created in section
seven, article seven, chapter eighteen-c of this code; (3) $19
million into the Economic Development Project Fund created in
subsection (d) of this section for the issuance of revenue bonds
and to be spent in accordance with the provisions of said
subsection; (4) $20 million into the School Building Debt Service
Fund created in section six, article nine-d, chapter eighteen of
this code for the issuance of revenue bonds; (5) $40 million into
the West Virginia Infrastructure Fund created in section nine,
article fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) $10 million
into the Higher Education Improvement Fund for Higher Education;
and (7) $5 million into the State Park Improvement Fund for Park
Improvements.
(c) For the fiscal year beginning July 1, 2004, and subsequent
fiscal years, the commission shall deposit: (1) $65 million into
the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2)
twenty-seven $29 million into
the Education Improvement Fund for appropriation by the Legislature
to the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (d) of this section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $19 million
into the School Building Debt Service Fund created in section six,
article nine-d, chapter eighteen of this code for the issuance of
revenue bonds:
Provided, That for the fiscal year beginning July
1, 2008, and subsequent fiscal years, no moneys shall be deposited
in the School Building Debt Service Fund pursuant to this
subsection and instead $19 million shall be deposited into the
Excess Lottery School Building Debt Service Fund; (5) $40 million
into the West Virginia Infrastructure Fund created in section nine,
article fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) $10 million
into the Higher Education Improvement Fund for Higher Education;
and (7) $5 million into the State Park Improvement Fund for Park
Improvements. No portion of the distributions made as provided in
this subsection and subsection (b) of this section, except
distributions made in connection with bonds issued under subsection
(d) of this section, may be used to pay debt service on bonded
indebtedness until after the Legislature expressly authorizes
issuance of the bonds and payment of debt service on the bonds
through statutory enactment or the adoption of a concurrent
resolution by both houses of the Legislature. Until subsequent
legislative enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service on the bonds with funds distributed under this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (d) of this section, the
distributions may be used only to fund capital improvements that
are not financed by bonds and only pursuant to appropriation of the
Legislature.
(d) The Legislature finds and declares that in order to
attract new business, commerce 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 of this state and the economic welfare of the citizens
of this state, it is necessary to provide public financial support
for constructing, equipping, improving and maintaining economic
development projects, capital improvement projects and
infrastructure which promote economic development in this state.
(1) The West Virginia Economic Development Authority created
and provided
for in article fifteen, chapter thirty-one of this
code shall, by resolution, in accordance with the provisions of
this article and article fifteen, chapter thirty-one of this code,
and upon direction of the Governor, issue revenue bonds of the
Economic Development Authority in no more than two series to pay
for all or a portion of the cost of constructing, equipping,
improving or maintaining projects under this section or to refund
the bonds at the discretion of the authority. Any revenue bonds issued on or after July 1, 2002, which are secured by state excess
lottery revenue 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 special fund provided in this
section for the payment.
(2) There is continued in the State Treasury a special revenue
fund named the Economic Development Project Fund into which shall
be deposited on and after July 1, 2002, the amounts to be deposited
in said fund as specified in subsections (b) and (c) of this
section. The Economic Development Project Fund shall consist of
all such moneys, all appropriations to the fund, all interest
earned from investment of the fund and any gifts, grants or
contributions received by the 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, including any and all
commercially customary and reasonable costs and expenses which may
be incurred in connection with the issuance, refunding, redemption
or defeasance thereof. The West Virginia Economic Development
Authority may further provide in the resolution and in the trust
agreement for priorities on the revenues paid into the Economic
Development Project 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 subsection shall be separate from all other bonds which may be
or have been issued, from time to time, under the provisions of
this article.
(3) After the West Virginia Economic Development Authority has
issued bonds authorized by this section and after the requirements
of all funds have been satisfied, including any coverage and
reserve funds established in connection with the bonds issued
pursuant to this subsection, any balance remaining in the Economic
Development Project Fund may be used for the redemption of any of
the outstanding bonds issued under this subsection 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.
(4) Bonds issued under this subsection shall state on their
face that the bonds do not constitute a debt of the State of West
Virginia; that payment of the bonds, interest and charges thereon
cannot become an obligation of the State of West Virginia; and that
the bondholders' remedies are limited in all respects to the
Special Revenue Fund established in this subsection for the
liquidation of the bonds.
(5) The West Virginia Economic Development Authority shall
expend the bond proceeds from the revenue bond issues authorized and directed by this section for such projects as may be certified
under the provision of this subsection:
Provided, That the bond
proceeds shall be expended in accordance with the requirements and
provisions of article five-a, chapter twenty-one of this code and
either article twenty-two or twenty-two-a, chapter five of this
code, as the case may be:
Provided, however, That if such bond
proceeds are expended pursuant to article twenty-two-a, chapter
five of this code and if the Design-Build Board created under said
article determines that the execution of a design-build contract in
connection with a project is appropriate pursuant to the criteria
set forth in said article and that a competitive bidding process
was used in selecting the design builder and awarding such
contract, such determination shall be conclusive for all purposes
and shall be deemed to satisfy all the requirements of said
article.
(6) For the purpose of certifying the projects that will
receive funds from the bond proceeds, a committee is hereby
established and comprised of the Governor, or his or her designee,
the Secretary of the Department of Revenue, the Executive Director
of the West Virginia Development Office and six persons appointed
by the Governor:
Provided, That at least one citizen member must
be from each of the state's three congressional districts. The
committee shall meet as often as necessary and make certifications
from bond proceeds in accordance with this subsection. The committee shall meet within thirty days of the effective date of
this section.
(7) Applications for grants submitted on or before July 1,
2002, shall be considered refiled with the committee. Within ten
days from the effective date of this section as amended in the year
2003, the lead applicant shall file with the committee any
amendments to the original application that may be necessary to
properly reflect changes in facts and circumstances since the
application was originally filed with the committee.
(8) When determining whether or not to certify a project, the
committee shall take into consideration the following:
(A) The ability of the project to leverage other sources of
funding;
(B) Whether funding for the amount requested in the grant
application is or reasonably should be available from commercial
sources;
(C) The ability of the project to create or retain jobs,
considering the number of jobs, the type of jobs, whether benefits
are or will be paid, the type of benefits involved and the
compensation reasonably anticipated to be paid persons filling new
jobs or the compensation currently paid to persons whose jobs would
be retained;
(D) Whether the project will promote economic development in
the region and the type of economic development that will be promoted;
(E) The type of capital investments to be made with bond
proceeds and the useful life of the capital investments; and
(F) Whether the project is in the best interest of the public.
(9) No grant may be awarded to an individual or other private
person or entity. Grants may be awarded only to an agency,
instrumentality or political subdivision of this state or to an
agency or instrumentality of a political subdivision of this state.
The project of an individual or private person or entity may
be certified to receive a low-interest loan paid from bond
proceeds. The terms and conditions of the loan, including, but not
limited to, the rate of interest to be paid and the period of the
repayment, shall be determined by the Economic Development
Authority after considering all applicable facts and circumstances.
(10) Prior to making each certification, the committee shall
conduct at least one public hearing, which may 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.
(11) The committee may not certify a project unless the
committee finds that the project is in the public interest and the
grant will be used for a public purpose. For purposes of this
subsection, projects in the public interest and for a public purpose include, but are not limited to:
(A) Sports arenas, fields, parks, stadiums and other sports
and sports-related facilities;
(B) Health clinics and other health facilities;
(C) Traditional infrastructure, such as water and wastewater
treatment facilities, pumping facilities and transmission lines;
(D) State-of-the-art telecommunications infrastructure;
(E) Biotechnical incubators, development centers and
facilities;
(F) Industrial parks, including construction of roads, sewer,
water, lighting and other facilities;
(G) Improvements at state parks, such as construction,
expansion or extensive renovation of lodges, cabins, conference
facilities and restaurants;
(H) Railroad bridges, switches and track extension or spurs on
public or private land necessary to retain existing businesses or
attract new businesses;
(I) Recreational facilities, such as amphitheaters, walking
and hiking trails, bike trails, picnic facilities, restrooms, boat
docking and fishing piers, basketball and tennis courts, and
baseball, football and soccer fields;
(J) State-owned buildings that are registered on the National
Register of Historic Places;
(K) Retail facilities, including related service, parking and transportation facilities, appropriate lighting, landscaping and
security systems to revitalize decaying downtown areas; and
(L) Other facilities that promote or enhance economic
development, educational opportunities or tourism opportunities
thereby promoting the general welfare of this state and its
residents.
(12) Prior to the issuance of bonds under this subsection, the
committee shall certify to the Economic Development Authority a
list of those certified projects that will receive funds from the
proceeds of the bonds. Once certified, the list may not thereafter
be altered or amended other than by legislative enactment.
(13) If any proceeds from sale of bonds remain after paying
costs and making grants and loans as provided in this subsection,
the surplus may be deposited in an account created in the State
Treasury to be known as the Economic Development Project Bridge
Loan Fund to be administered by the Economic Development Authority
created in article fifteen, chapter thirty-one of this code.
Expenditures from the fund are not authorized from collections but
are to be made only in accordance with appropriation by the
Legislature and in accordance with the provisions of article three,
chapter twelve of this code and upon fulfillment of the provisions
of article two, chapter five-a of this code. Loan repayment
amounts, including the portion attributable to interest, shall be
paid into the fund created in this subdivision.
(e) If the commission receives revenues in an amount that is
not sufficient to fully comply with the requirements of subsections
(b), (c) and (h) of this section, the commission shall first make
the distribution to the Economic Development Project Fund; second,
make the distribution or distributions to the other funds from
which debt service is to be paid; third, make the distribution to
the Education Improvement Fund for appropriation by the Legislature
to the PROMISE Scholarship Fund; and fourth, make the distribution
to the General Purpose Account:
Provided, That, subject to the
provisions of this subsection, to the extent such revenues are not
pledged in support of revenue bonds which are or may be issued,
from time to time, under this section, the revenues shall be
distributed on a pro rata basis.
(f) For the fiscal year beginning July 1, 2002, and each
fiscal year thereafter, the commission shall, after meeting the
requirements of subsections (b), (c) and (h) of this section and
after transferring to the State Lottery Fund created under section
eighteen of this article an amount equal to any transfer from the
State Lottery Fund to the Excess Lottery Fund pursuant to
subsection (f), section eighteen of this article, deposit fifty
percent of the amount by which annual gross revenue deposited in
the State Excess Lottery Revenue Fund exceeds $250 million in a
fiscal year in a separate account in the State Lottery Fund to be
available for appropriation by the Legislature.
(g) When bonds are issued for projects under subsection (d) of
this section or for the School Building Authority, infrastructure,
higher education or park improvement purposes described in this
section that are secured by profits from lotteries deposited in the
State Excess Lottery Revenue Fund, the Lottery Director shall
allocate first to the Economic Development Project Fund an amount
equal to one tenth of the projected annual principal, interest and
coverage requirements on any and all revenue bonds issued, or to be
issued, on or after July 1, 2002, as certified to the Lottery
Director; and second, to the fund or funds from which debt service
is paid on bonds issued under this section for the School Building
Authority, infrastructure, higher education and park improvements
an amount equal to one tenth of the projected annual principal,
interest and coverage requirements on any and all revenue bonds
issued, or to be issued, on or after April 1, 2002, as certified to
the Lottery Director. In the event there are insufficient funds
available in any month to transfer the amounts required pursuant to
this subsection, the deficiency shall be added to the amount
transferred in the next succeeding month in which revenues are
available to transfer the deficiency.
(h) In fiscal year two thousand four and thereafter, prior to
the distributions provided in subsection (c) of this section, the
Lottery Commission shall deposit into the General Revenue Fund
amounts necessary to provide reimbursement for the refundable credit allowable under section twenty-one, article twenty-one,
chapter eleven of this code.
(i) (1) The Legislature considers the following as priorities
in the expenditure of any surplus revenue funds:
(A) Providing salary and/or increment increases for
professional educators and public employees;
(B) Providing adequate funding for the Public Employees
Insurance Agency; and
(C) Providing funding to help address the shortage of
qualified teachers and substitutes in areas of need, both in number
of teachers and in subject matter areas.
(2) The provisions of this subsection may not be construed by
any court to require any appropriation or any specific
appropriation or level of funding for the purposes set forth in
this subsection.
(j) The Legislature further directs the Governor to focus
resources on the creation of a prescription drug program for senior
citizens by pursuing a Medicaid waiver to offer prescription drug
services to senior citizens; by investigating the establishment of
purchasing agreements with other entities to reduce costs; by
providing discount prices or rebate programs for seniors; by
coordinating programs offered by pharmaceutical manufacturers that
provide reduced cost or free drugs; by coordinating a collaborative
effort among all state agencies to ensure the most efficient and cost-effective program possible for the senior citizens of this
state; and by working closely with the state's congressional
delegation to ensure that a national program is implemented. The
Legislature further directs that the Governor report his progress
back to the Joint Committee on Government and Finance on an annual
basis beginning in November of the year 2001 one until a
comprehensive program has been fully implemented.
NOTE: The purpose of this bill is to increase the limit on the
amount of money the Legislature can allocate from an annual
increment of two percent to four percent and increase funding from
$27 million to $29 million.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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