Senate Bill No. 101
(By Senators Burdette, Mr. President, and Boley,
By Request of the Executive)
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[Introduced October 17, 1993;
referred to the Committee on Finance.]
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A BILL to amend and reenact section thirty, article fifteen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; and to amend and
reenact section ten, article twenty, chapter thirty-one of
said code, all relating to dedicating a source of revenue to
support the repayment of bonds and refunding bonds to be
issued and the repayment of lease-purchase obligations to be
incurred by the regional jail and correctional facility
authority.
Be it enacted by the Legislature of West Virginia:
That section thirty, article fifteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; 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.
§11-15-30. Proceeds of tax; dedication of certain revenues.
The proceeds of the tax imposed by this article shall be
distributed as provided in subsections (a) (b) and (c) of this
section deposited in the general revenue fund of the state:
Provided, That beginning the first day of July, one thousand nine
hundred eighty-nine, and continuing each month thereafter through
the last day of July, one thousand nine hundred ninety-two, the
first five million dollars of proceeds of this tax for each month
shall be paid into the "Fiscal Responsibility Fund" created by
section nineteen, article one, chapter five of this code and used
for the purposes specified therein, and that on and after the
first day of August, one thousand nine hundred ninety-two, and
continuing each month thereafter until any money borrowed under
section nine-d, article six, chapter twelve of this code is
repaid, the first five million dollars of proceeds of this tax
for each month shall be paid into the "Education Enhancement
Fund" created by section nine-d, article six, chapter twelve of
this code: Provided, however, That if no money is borrowed under
section nine-d, article six of said chapter twelve, before the
first day of August, one thousand nine hundred ninety-two, then
no tax collected under this article shall be deposited into the
"Education Enhancement Fund", and if money is borrowed after the
thirtieth day of June, one thousand nine hundred ninety-two, then
payment into the "Education Enhancement" Fund shall begin the
first day of the calendar month succeeding the month in whichfunds are borrowed under section nine-d, article six of said
chapter twelve: Provided further, That if less than sixty
million dollars is borrowed under said section nine-d, then the
amount to be paid into the "Education Enhancement Fund" each
month, as provided in this section, shall be that proportion of
five million dollars that the amount of money borrowed bears to
sixty million dollars.
(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 as
a first priority from the collections of this tax, prior to the
payment or commitment of the proceeds or collections of this tax
for any other purpose whatsoever, an amount equal to one-eighth
of the projected annual principal and interest requirements on
any and all revenue bonds and refunding bonds issued, or to be
issued, on or after the first day of January, one thousand nine
hundred ninety-four, for which bonds moneys in the "School
Building Debt Service Fund" have been pledged, or will be
pledged, for repayment pursuant to section six, article nine-d,
chapter eighteen of this code, such principal and interest
requirements having been certified to the tax commissioner in
accordance with the provisions of section six, article nine-d,
chapter eighteen of this code: Provided, That in no event shall
the total dedicated collections of this tax 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 andinterest requirements certified to the tax commissioner as
aforesaid, or twelve million dollars. The amount so dedicated
shall be deposited on a monthly basis into the "School Building
Debt Service Fund" created pursuant to section six, article nine-
d, chapter eighteen of this code.
(b) 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 as
a second priority 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 first priority from the
collections of this tax for the "School Building Debt Service
Fund" as set forth in this section, 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 lease-purchase obligations incurred, 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 section ten,
article twenty, chapter thirty-one of this code: Provided, That
in no event shall the proceeds of this tax, to be paid annually
into the "Regional Jail and Correctional Facility DevelopmentFund," 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 so dedicated
shall be deposited monthly into the "Regional Jail and
Correctional Facility Development Fund" created by section ten,
article twenty, chapter thirty-one of this code.
(c) The proceeds from the tax imposed by this article
remaining after compliance with the provisions of subsections (a)
and (b) 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 the
state 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 may shall be used to
make payments of interest and may shall be pledged as security
for bonds, security interests or notes issued, or lease-purchaseobligations incurred, 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, including lease-purchase obligations, 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 make
an 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 administrationhave 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 the
circuit court elects to incarcerate therein.
(h) When inmates are placed in a regional jail facilitypursuant 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, 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 of chapter thirty-one of this code, or any lease-purchase obligations incurred by the authority. On or prior to
the first day of January of each year, commencing the first day
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, or
lease-purchase obligations incurred or to be incurred, 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 or
lease-purchase obligations 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, or lease-purchase
obligations incurred, 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
fifty-five 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 of 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 of article ten of the Constitution of
West Virginia. The Legislature hereby further finds and declares
that this section, as well as section thirty of article fifteen
of 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, in an attempt to
comply with said 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 consumer sales tax pursuant
to section thirty of article fifteen of chapter eleven of this
code 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 of
article fifteen of chapter eleven of this code, 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, and lease-purchase obligations incurred, 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 of article fifteen
of chapter eleven of this code, to comply with the provisions of
section four of article ten, section six of article ten, section
six-a of article ten, and section one of article twelve of the
Constitution of West Virginia.
NOTE: The purpose of this bill is to dedicate a source of
revenue to support the repayment of bonds and refunding bonds
issued, and the repayment of lease-purchase obligations incurred,
by the regional jail and correctional facility authority. The
bill also limits the total amount of bonds which may be issued.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.