Committee Substitute
for
Senate Bill No. 101
(By Senators Burdette, Mr. President, and Boley,
By Request of the Executive)
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[Originating in the Committee on Finance;
reported October 17, 1993.]
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A BILL to amend article fifteen, chapter eleven of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
thirty-a; and to amend and reenact section ten, article
twenty, chapter thirty-one of said code, all relating to
dedicating consumers sales tax proceeds for the payment of
bonds issued by the regional jail and correctional facility
authority; providing for the disposition of the balance of
collections of the consumers sales tax; providing for
certification of the amount needed to pay principal and
interest on such bonds for each fiscal year; providing for
the payment of principal and interest on bonds issued prior
to the first day of January, one thousand nine hundred
ninety-four, or bonds issued for the refunding of bonds
issued prior to that date; creating a special fund for the
deposit of pledged revenues; providing for the issuance of
bonds for which the dedicated revenue is pledged for
repayment; limiting the permissible expenditures from the
school building capital improvements fund and the school
building debt service fund; and limiting the total amount of
debt which may be issued by the regional jail and
correctional facility authority.
Be it enacted by the Legislature of West Virginia:
That article fifteen, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirty-a; and that section ten, article twenty, chapter
thirty-one of said code be amended and reenacted, all to read as
follows:
CHAPTER 11. TAXATION.
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-30a. Proceeds of tax; dedication of certain revenues.
After the proceeds of the tax under this article have been
dedicated under the provisions of section thirty of this article,
the proceeds of the tax imposed by this article shall be
distributed as provided in subdivisions (a) and (b) of this
section.
(a) Beginning the first day of November, one thousand nine
hundred ninety-three, and continuing on the first day of each
succeeding month thereafter, there shall be dedicated monthly
from the collections of this tax, prior to the payment or
commitment of the proceeds or collections of this tax for any
other purpose, other than the dedication from the collections of
this tax for the school building debt service fund as set forthin section thirty of this article, an amount equal to one eighth
of the projected annual principal and interest requirements on
any and all revenue bonds or refunding bonds issued, or to be
issued, or to be incurred, on or after the first day of January,
one thousand nine hundred ninety-four, for which moneys in the
regional jail and correctional facility development fund have
been pledged, or will be pledged for repayment pursuant to
section ten, article twenty, chapter thirty-one of this code,
such principal and interest requirements having been certified to
the tax commissioner in accordance with the provisions of said
section: Provided, That in no event shall the proceeds of this
tax, to be paid annually into the regional jail and correctional
facility development fund, in any fiscal year exceed the lesser
of the principal and interest requirements certified to the tax
commissioner as aforesaid, or four million dollars. The amount
dedicated shall be deposited monthly into the regional jail and
correctional facility development fund created by said section.
(b) The proceeds from the tax imposed by this article
remaining after compliance with the provisions of section thirty
of this article and subdivision (a) of this section shall be
deposited in the general revenue fund of the state.
CHAPTER 31. CORPORATIONS.
ARTICLE 20. WEST VIRGINIA REGIONAL JAIL AND CORRECTIONAL
FACILITY AUTHORITY.
§31-20-10. Regional jail and correctional facility development
fund.
(a) The regional jail and correctional facility development
fund is hereby created and shall be a special account in thestate treasury. The fund shall operate as a revolving fund
whereby all appropriations and payments thereto may be applied
and reapplied by the authority for the purposes of this article.
Separate accounts may be established within the special account
for the purpose of identification of various revenue resources
and payment of specific obligations.
(b) Revenues deposited into the fund shall be used to make
payments of interest and shall be pledged as security for bonds,
security interests or notes issued by the authority pursuant to
this article.
(c) Whenever the authority determines that the balance in
the fund is in excess of the immediate requirements of this
article, it may request that such excess be invested until
needed. In such case such excess shall be invested in a manner
consistent with the investment of the temporary state funds.
Interest earned on any money invested pursuant to this section
shall be credited to the fund.
(d) If the authority determines that funds held in the fund
are in excess of the amount needed to carry out the purposes of
this article, it shall take such action as is necessary to
release such excess and transfer it to the general fund of the
state treasury.
(e) The fund shall consist of the following:
(1) Amounts raised by the authority by the sale of bonds or
other borrowing authorized by this article;
(2) Moneys collected and deposited in the state treasury
which are specifically designated by acts of the Legislature for
inclusion into the fund;
(3) Contributions, grants and gifts from any source, both
public and private, which may be used by the authority for any
project or projects;
(4) All sums paid by the counties pursuant to subsection (h)
of this section; and
(5) All interest earned on investments made by the state
from moneys deposited in this fund.
(f) The amounts deposited in the fund shall be accounted for
and expended in the following manner:
(1) Amounts raised by the sale of bonds or other borrowing
authorized by this article shall be deposited in a separate
account within the fund and expended for the purpose of
construction and renovation of correctional facilities and
regional jails for which need has been determined by the
authority;
(2) Amounts deposited from all other sources shall be
pledged first to the debt service on any bonded indebtedness or
other obligation incurred by borrowing of the authority;
(3) After any requirements of debt service have been
satisfied, the authority shall requisition from the fund such
amounts as are necessary to provide for payment of the
administrative expenses of this article;
(4) The authority shall requisition from the fund after any
requirements of debt service have been satisfied such amounts as
are necessary for the maintenance and operation of the
correctional facilities or regional jails or both that are
constructed pursuant to the plan required by this article and
shall expend such amounts for such purpose. The fund shall makean accounting of all amounts received from each county by virtue
of any filing fees, court costs or fines required by law to be
deposited in the fund and amounts from the jail improvement funds
of the various counties. After the expenses of administration
have been deducted, the amounts expended in the respective
regions from such sources shall be in proportion to the
percentage the amount contributed to the fund by the counties in
each region bears to the total amount received by the fund from
such sources;
(5) Notwithstanding any other provisions of this article,
sums paid into the fund by each county pursuant to subsection (h)
of this section for each inmate shall be placed in a separate
account and shall be requisitioned from the fund to pay for the
costs specified in that subsection incurred at the regional jail
facility at which each such inmate was incarcerated; and
(6) Any amounts deposited in the fund from other sources
permitted by this article shall be expended in the respective
regions based on particular needs to be determined by the
authority.
(g) After a regional jail facility becomes available
pursuant to this article for the incarceration of inmates, each
county within the region shall incarcerate all persons whom the
county would have incarcerated in any jail prior to the
availability of the regional jail facility in the regional jail
facility except those whose incarceration in a local jail
facility used as a local holding facility is specified as
appropriate under the standards and procedures developed pursuant
to section nine of this article and who the sheriff or thecircuit court elects to incarcerate therein.
(h) When inmates are placed in a regional jail facility
pursuant to subsection (g) of this section, the county shall pay
into the regional jail and correctional facility development fund
a cost per day for each inmate so incarcerated to be determined
by the regional jail and correctional facility authority
according to criteria and by procedures established by
regulations pursuant to article three, chapter twenty-nine-a of
this code to cover the costs of operating the regional jail
facilities of this state to maintain each such inmate which costs
shall not include the cost of construction, acquisition or
renovation of said regional jail facilities: Provided, That each
regional jail facility operating in this state shall keep a
record of the date and time of the incarceration of an inmate,
and a county may not be charged for a second day of incarceration
for an individual inmate until that inmate has remained
incarcerated for more than twenty-four hours. Thereafter, in
cases of continuous incarceration, subsequent per diem charges
shall be made upon a county only as subsequent intervals of
twenty-four hours pass from the original time of incarceration.
(i) On and after the first day of November, one thousand
nine hundred ninety-three, the amounts as and when specified in
section thirty-a, article fifteen, chapter eleven of this code
shall be paid into the regional jail and correctional facility
development fund. All of the specified amounts deposited in this
fund shall be pledged to the repayment of the principal and
interest on any revenue bonds or refunding bonds authorized by
article twenty, chapter thirty-one of this code. On or prior tothe first day of January of each year, commencing the first day
of January, one thousand nine hundred ninety-four, the authority
shall certify to the tax commissioner of the state the principal
and interest requirements for the following fiscal year on any
revenue bonds or refunding bonds issued or to be issued on or
after the first day of January, one thousand nine hundred ninety-
four, and for which moneys contained within the regional jail and
correctional facility development fund have been, or will be,
pledged for repayment pursuant to this section: Provided, That
before the first day of November, one thousand nine hundred
ninety-three, the authority shall also certify to the state tax
commissioner the principal and interest requirements for the
fiscal year ending on the thirtieth day of June, one thousand
nine hundred ninety-four, on any revenue bonds or refunding bonds
issued, by the authority on or after the first day of January,
one thousand nine hundred ninety-four. The maximum aggregate
face value of bonds that may be issued by the authority, for
which moneys in the regional jail and correctional facility
development fund are to be pledged, is sixty-one million dollars.
(j) The Legislature hereby finds and declares that the
supreme court of appeals of West Virginia has held that the
revenue bonds authorized under the school building authority act,
as enacted in article nine-d, chapter eighteen of this code prior
to the twentieth day of July, one thousand nine hundred
ninety-three, constituted an indebtedness of the state in
violation of section four, article ten of the constitution of
West Virginia. The Legislature hereby further finds and declares
that this section, as well as section thirty, article fifteen,chapter eleven of this code have been reenacted during the second
extraordinary session of the West Virginia Legislature in the
year one thousand nine hundred ninety-three, and that section
thirty-a of said article has been enacted in an attempt to comply
with the holding of the supreme court of appeals of West
Virginia. The Legislature hereby further finds and declares that
the continued construction and improvement of jail and prison
facilities and the dedication of the consumers sales tax pursuant
to said section to finance such construction and improvement are
for the use and benefit of the state, its counties, its
municipalities and its other political subdivisions, and such
construction and improvement serves the vital public purpose of
assuring the physical safety of each citizen and the public at
large. The Legislature hereby further finds and declares that it
intends, through the reenactment of this section and section
thirty, article fifteen, chapter eleven of this code and the
enactment of section thirty-a of said article to dedicate a
source of state revenue to a special fund for the purpose of
paying a portion of the debt service on bonds and refunding bonds
issued, subsequent to the first day of January, one thousand nine
hundred ninety-four, the proceeds of which will be utilized for
the construction and improvement of jail and prison facilities.
The Legislature hereby further finds and declares that it
intends, through the reenactment of this section and section
thirty, article fifteen, chapter eleven of this code, and the
enactment of section thirty-a of said article to comply with the
provisions of section four, article ten; section six, article
ten; section six-a, article ten; and section one, article twelveof the constitution of West Virginia.