COMMITTEE SUBSTITUTE
FOR
H. B. 4179
(By Mr. Speaker, Mr. Chambers, and Delegate Burk)
[By Request of the Executive]
(Originating in the House Committee on Education)
[February 18, 1994]
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; to repeal section thirty-a of said article; to amend and reenact section thirteen, article sixteen-a, chapter seventeen of said code; to amend and reenact sections two, three, four, six, eight, eleven, thirteen, fifteen and sixteen, article nine-d, chapter eighteen of said code; to further amend said article by adding thereto a new section, designated section eighteen; to repeal section ten of said article; and to amend and reenact section eighteen, article twenty-two, chapter twenty-nine of said code, all relating to dedicating consumers sales tax proceeds and authorizing appropriations by the Legislature of lottery and parkways authority revenues for school facilities and maintenance projects; creating the fiscal responsibility fund and the school maintenance fund for the deposit of dedicated consumers sales tax and appropriated lottery and parkways authority revenues; and limiting the permissible expenditures from the school building capital improvements fund, the fiscal responsibility fund and the school maintenance fund.
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one thousand nine hundred thirty-one, as amended, be amended and reenacted; that section thirty-a of said article be repealed; that section thirteen, article sixteen-a, chapter seventeen be amended and reenacted; that sections two, three, four, six, eight, eleven, thirteen, fifteen and sixteen, article nine-d, chapter eighteen of said code be amended and reenacted; that said article be further amended by adding thereto a new section, designated section eighteen; that section ten of said article be repealed; and that section eighteen, article twenty-two, chapter twenty-nine of said code be amended and reenacted, all to read as follows: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.
(a) School maintenance fund.
(1) Beginning the first day of November, one thousand nine hundred ninety-three July, one thousand nine hundred ninety-five, and continuing on the first day of each succeeding month thereafter, through the thirtieth day of June, one thousand nine hundred ninety-six, 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 whatsoever, an the 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 bond 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 said section: 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 and interest requirements certified to the tax commissioner as aforesaid, or twelve million dollars of four hundred sixteen thousand six hundred sixty-six dollars and the amount dedicated shall be deposited on a monthly basis into the school building debt service maintenance fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(2) Beginning the first day of July, one thousand nine hundred ninety-six through the thirtieth day of June one thousand nine hundred ninety-seven, 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 whatsoever, the amount of six hundred sixty-six thousand six hundred sixty-seven dollars and the amount dedicated shall be deposited on a monthly basis into the school maintenance fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(3) Beginning the first day of July, one thousand nine hundred ninety-seven, and continuing on the first day of each 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 purposes whatsoever, the amount of one million two hundred fifty thousand dollars and the amount dedicated shall be deposited on a monthly basis into the school maintenance fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(b) Fiscal responsibility fund.
(1) Beginning the first day of July, one thousand nine hundred ninety-five, and continuing on the first day of each succeeding month thereafter through the thirtieth day of June, one thousand nine hundred ninety-six, 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 whatsoever, the amount of two million nine hundred sixteen thousand six hundred sixty-seven dollars and the amount dedicated shall be deposited into the fiscal responsibility fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(2) Beginning the first day of July, one thousand nine hundred ninety-six, and continuing on the first day of each succeeding month thereafter through the last day of June, one thousand nine hundred ninety-seven, 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 whatsoever, the amount of five million one hundred sixty-six thousand six hundred sixty-seven dollars and the amount dedicated shall be deposited into the fiscal responsibility fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(3) Beginning the first day of July, one thousand nine hundred ninety-seven, 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 whatsoever, the amount of three million seven hundred fifty thousand dollars and the amount dedicated shall be deposited into the fiscal responsibility fund created pursuant to section six, article nine-d, chapter eighteen of this code.
CHAPTER 17. ROADS AND HIGHWAYS.
ARTICLE 16. WEST VIRGINIA PARKWAYS, ECONOMIC DEVELOPMENT AND
TOURISM AUTHORITY
§
17
-
16A
-
13. Tolls, rents, fees, charges and revenues;
competitive bidding on contracts.
(a) The parkways authority is hereby authorized to fix, revise, charge and collect tolls for the use of each parkway project and the different parts or sections thereof, and to fix, revise, charge and collect rents, fees, charges and other revenues, of whatever kind or character, for the use of each economic development project or tourism project, or any part or section thereof, and to contract with any person, partnership, association or corporation desiring the use of any part thereof, including the right-of-way adjoining the paved portion, for placing thereon telephone, telegraph, electric light, power or other utility lines, gas stations, garages, stores, hotels, restaurants and advertising signs, or for any other purpose except for tracks for railroad or railway use, and to fix the terms, conditions, rents and rates of charges for such use. Such tolls, rents, fees and charges shall be so fixed and adjusted in respect of the aggregate of tolls, or in respect of the aggregate rents, fees and charges, from the project or projects in connection with which the bonds of any issue shall have been issued as to provide a fund sufficient with other revenues, if any, to pay (a) the cost of maintaining, repairing and operating such project or projects and (b) the principal of and the interest on such bonds as the same shall become due and payable, and to create reserves for such purposes. Such tolls, rents, fees and other charges shall not be subject to supervision or regulation by any other commission, board, bureau, department or agency of the state. The tolls, rents, fees, charges and all other revenues derived from the project or projects in connection with which the bonds of any issue shall have been issued, except such part thereof as may be necessary to pay such cost of maintenance, repair and operation and to provide such reserves therefor as may be provided for in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or such trust agreement in a sinking fund which is hereby pledged to, and charged with, the payment of (1) the interest upon such bonds as such interest shall fall due, (2) the principal of such bonds as the same shall fall due, (3) the necessary charges of paying agents for paying principal and interest, and (4) the redemption price or the purchase price of bonds retired by call or purchase as therein provided. The use and disposition of moneys to the credit of such sinking fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking fund shall be a fund for all such bonds without distinction or priority of one over another. The moneys in the sinking fund, less such reserve as may be provided in such resolution or trust agreement, if not used within a reasonable time for the purchase of bonds for cancellation as above provided, shall be applied to the redemption of bonds at the redemption price then applicable.
(b) Notwithstanding any other provision of this article, after setting aside certain rents, fees, charges and other revenues pursuant to subsection (a) of this section, on or after the first day of July, one thousand nine hundred ninety-four, the parkways authority shall transfer a total amount of five million dollars from remaining moneys available to the authority from concessions, rents, fees, charges and other revenues together with all interest earned on such concessions, rents, fees, charges and other revenues to the fiscal responsibility fund created in section six, article nine-d, chapter eighteen of this code, to be used for the purposes specified in section sixteen of said article:
Provided,
That no revenues from tolls shall be transferred pursuant to this subsection:
Provided, however,
That the transfer of a total amount of five million dollars shall be completed on or before the thirty-first day of January, one thousand nine hundred ninety-five.
(c) The parkways authority shall cause, as soon as it is legally able to do so, all contracts to which it is a party and which relate to the operation, maintenance or use of any restaurant, motel or other lodging facility, truck and automobile service facility, food vending facility or any other service facility located along the West Virginia Turnpike, to be renewed on a competitive bid basis. All contracts relating to any facility or services entered into by the parkways authority with a private party with respect to any project constructed after the effective date of this legislation shall be let on a competitive bid basis only. If the parkways authority receives a proposal for the development of a project, such proposal shall be made available to the public in a convenient location in the county wherein the proposed facility may be located. The parkways authority shall publish a notice of the proposal by a Class I legal advertisement in accordance with the provisions of article three, chapter fifty-nine of this code. The publication area shall be the county in which the proposed facility would be located. Any citizen may communicate by writing to the parkways authority his or her opposition to or approval to such proposal within a period of time not less than forty-five days from the publication of the notice. No contract for the development of a project may be entered into by the parkways authority until a public hearing is held in the vicinity of the location of the proposed project with at least twenty days notice of such hearing by a Class I publication pursuant to section two, article three, chapter fifty-nine of this code. The parkways authority shall make written findings of fact prior to rendering a decision on any proposed project. All studies, records, documents and other materials which are considered by the parkways authority in making such findings shall be made available for public inspection at the time of the publication of the notice of public hearing and at a convenient location in the county where the proposed project may be located. The parkways authority shall promulgate rules in accordance with chapter twenty-nine-a of this code for the conduct of any hearing required by this section. Persons attending any such hearing shall be afforded a reasonable opportunity to speak and be heard on the proposed project.
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§
18-9D-2. Definitions.
The following terms, wherever used or referred to in this article, have the following meanings, unless a different meaning clearly appears from the context:
(1) "Authority" means the school building authority of West Virginia or, if said authority shall be abolished, any board or officer succeeding to the principal functions thereof, or to whom the powers given to said authority shall be given by law;
(2) "Bonds" means bonds issued by the authority pursuant to this article;
(3) "Project" or "Capital improvement project" means the new construction, major renovation, repair and safety upgrading of facilities, buildings and structures for school purposes including the acquisition of land for current or future use in connection therewith, as well as new or upgrading of existing equipment, machinery, furnishings, installation of utilities and other similar items convenient in connection with placing the foregoing into operation, but may not include such items as books, computers or equipment used for instructional purposes, fuel, supplies, utility services, and other items which are customarily deemed to result in a current operating charge;
(4) "Cost of project" means the cost of construction, renovation, repair and safety upgrading of facilities, buildings and structures for school purposes; the cost of land, equipment, machinery, furnishings, installation of utilities and other similar items convenient in connection with placing the foregoing into operation; and the cost of financing, interest during construction, professional service fees and all other charges or expenses necessary, appurtenant or incidental to the foregoing, including the cost of administration of this article;
(5) "Revenue" or "revenues" means moneys deposited in the school building capital improvements fund pursuant to the operation of section ten, article nine-a of this chapter; moneys deposited in the school building debt service fund pursuant to the operation of section thirty, article fifteen, chapter eleven of this code; any moneys received, directly or indirectly, from any source for the use of all or any part of any project completed pursuant to this article; and any other moneys received by the authority for the purposes of this article;
(6) (5) "Facilities plan" means the regional county comprehensive educational facilities plan for school facilities required prior to the distribution of state funds to any county board pursuant to subsection (a), section fifteen sixteen of this article; and
(6) "Project" means a capital improvement project or a school maintenance project;
(7) "Region" means the area encompassed within and serviced by a regional educational service agency established pursuant to section twenty-six, article two of this chapter;
(8) "Revenue" or "revenues" means moneys deposited in the school building capital improvements fund pursuant to the operation of section ten, article nine-a of this chapter; moneys deposited in the fiscal responsibility fund pursuant to the operation of section thirty, article fifteen, chapter eleven of this code; moneys deposited in the school maintenance fund pursuant to the operation of section thirty, article fifteen, chapter eleven of this code; any moneys received, directly or indirectly, from any source for use in any project completed pursuant to this article; and any other moneys received by the authority for the purposes of this article;
(9) "School maintenance plan" means the county ten-year school maintenance plan required prior to the distribution of state funds to any county board pursuant to subsection (b), section sixteen of this article;
(10) "School maintenance project" means the repair and safety upgrading of existing school facilities, buildings and structures, including the repair or upgrading of equipment, machinery, building systems, utilities and other similar items convenient in connection with such repair or upgrading, but may not include such items as books, computers or equipment used for instructional purposes, fuel, supplies, utility services and other items which are customarily deemed to result in a current operating charge.
§
18-9D-3. Powers of authority.
The school building authority has the power:
(1) To sue and be sued, plead and be impleaded;
(2) To have a seal and alter the same at pleasure;
(3) To contract to acquire and to acquire, in the name of the authority by purchase, lease-purchase not to exceed a term of twenty-five years, or otherwise, real property or rights or easements necessary or convenient for its corporate purposes and to exercise the power of eminent domain to accomplish such purposes;
(4) To acquire, hold and dispose of real and personal property for its corporate purposes;
(5) To make bylaws for the management and rule of its affairs;
(6) To use the facilities, office, assistants and employees of the attorney general in all legal matters relating to litigation involving the authority;
(7) Except as limited in subdivision (6), to appoint, contract with and employ attorneys, bond counsel, accountants, construction and financial experts, underwriters, financial advisers, trustees, managers, officers and such other employees and agents as may be necessary in the judgment of the authority and to fix their compensation;
(8) To make contracts and to execute all instruments necessary or convenient to effectuate the intent of, and to exercise the powers granted to it by this article;
(9) To renegotiate all contracts entered into by it whenever, due to a change in situation, it appears to the authority that its interests will be best served;
(10) To acquire by purchase, eminent domain or otherwise all real property or interests therein necessary or convenient to accomplish the purposes of this article;
(11) To require proper maintenance and insurance of any project authorized hereunder;
(12) To charge rent for the use of all or any part of a project or buildings at any time financed, constructed, acquired or improved, in whole or in part, with the revenues of the authority;
(13) To assist county boards of education who choose to acquire land, buildings and capital improvements to existing school buildings and property, by through lease from a private or public lessor by providing one-time grants that would initially reduce annual lease payments for the county under for a terms not to exceed twenty-five years, with or without an option to purchase pursuant to an investment contract with said lessor, for use as public school facilities, and on such terms and conditions as may be determined to be in the best interests of the authority and consistent with the purposes of this article and the code of the State of West Virginia. Nothing herein shall be construed as to prohibit the authority from acting as a conduit through which county boards of education may effectuate lease agreements pursuant to the powers of the authority under this article or the powers of the county boards of education pursuant to section nine, article five, chapter eighteen of this code.
(14) To accept and expend any gift, grant, contribution, bequest or endowment of money to, or for the benefit of, the authority, from the state of West Virginia or any other source for any or all of the purposes specified in this article or for any one or more of such purposes as may be specified in connection with such gift, grant, contribution, bequest or endowment;
(15) To enter on any lands and premises for the purpose of making surveys, soundings and examinations;
(16) To contract for architectural, engineering or other professional services considered necessary or economical by the authority to provide consultative or other services to the authority or to any regional educational service agency or county board requesting professional services offered by the authority, to evaluate any facilities plan or any project encompassed therein, to inspect existing facilities or any project that has received or may receive funding from the authority, or to perform any other service considered by the authority to be necessary or economical. Assistance to the region or district may include the development of preapproved systems, plans, designs, models or documents; advice or oversight on any plan or project; or any other service that may be efficiently provided to regional educational service agencies or county boards by the authority;
(17) To provide funds on an emergency basis to repair or replace property damaged by fire, flood, wind, storm, earthquake or other natural occurrence, such funds to be made available in accordance with guidelines of the school building authority; and
(18) To do all things necessary or convenient to carry out the powers given in this article.
§
18-9D-4. School building authority authorized to issue
refunding revenue bonds and/or general
obligation bonds for school building capital
improvement projects.
(a) The school building authority may by resolution, in accordance with the provisions of this article, issue revenue bonds of the authority from time to time, either to finance the cost of school building capital improvement projects for public schools in this state, or to refund, at the discretion of the authority, bonds issued to finance the cost of school building capital improvement projects for public schools in this state and outstanding under and pursuant to the provisions of this article as in effect prior to the twentieth day of July, one thousand nine hundred and ninety-three. The principal of, interest and redemption premium, if any, on such bonds shall be payable solely from the special capital improvements fund herein provided for such payment.
(b) The school building authority may, in accordance with the provisions of the West Virginia Constitution, issue general obligation bonds from time to time as authorized by referendum, to finance the cost of school building capital improvement projects for public schools in this state.
§
18
-
9D-6. School building capital improvements fund in
state treasury; fiscal responsibility fund in
state
treasury;
school maintenance fund in
state treasury; collections to be paid into
special funds; authority to pledge such
collections as security for refunding revenue
bonds; authority to finance projects on a cash
basis.
(a) There is continued in the state treasury a school building capital improvements fund to be expended by the authority as provided in this article.
The school building authority shall have authority to pledge all or such part of the revenues paid into the school building capital improvements fund as may be needed to meet the requirements of any revenue bond issue or issues authorized by this article prior to the first day of January, one thousand nine hundred ninety-four twentieth day of July, one thousand nine hundred ninety-three, or revenue bonds issued to refund revenue bonds issued prior to that date, including the payment of principal of, interest and redemption premium, if any, on such revenue bonds and the establishing and maintaining of a reserve fund or funds for the payment of the principal of, interest and redemption premium, if any, on such revenue bond issue or issues when other moneys pledged may be insufficient therefor, including such additional protective pledge of revenues as the authority in its discretion has provided by resolution authorizing the issue of such bonds or in any trust agreement made in connection therewith. The authority may further provide in such resolution and in such trust agreement for such priorities on the revenues paid into such school building capital improvements 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.
Any balance remaining in the school building capital improvements fund after the authority has issued bonds authorized by this article, and after the requirements of all funds including reserve funds established in connection with the bonds issued prior to the twentieth day of July, one thousand nine hundred ninety-three pursuant to this article have been satisfied, may be used for the redemption of any of the outstanding bonds issued hereunder which by their terms are then redeemable, or for the purchase of such bonds at the market price, but not exceeding the price, if any, at which such bonds shall in the same year be redeemable, and all bonds redeemed or purchased shall forthwith be canceled and shall not again be issued.
The school building authority, in its discretion, may use the moneys in the school building capital improvements fund to finance the cost of projects on a cash basis. Any pledge of moneys in such fund for revenue bonds issued prior to the twentieth day of July, one thousand nine hundred ninety-three shall be a prior and superior charge on such fund over the use of any of the moneys in such fund to pay for the cost of any project on a cash basis:
Provided,
That any expenditures from such fund, other than for the retirement of revenue bonds, may only be made by the authority in accordance with the provisions of this article.
(b) There is hereby created in the state treasury a special fund named the school building debt service fiscal responsibility fund into which shall be deposited on and after the first day of November, one thousand nine hundred ninety-three July, one thousand nine hundred ninety-four, the amounts specified in section thirty, article fifteen, chapter eleven of this code, together with any moneys appropriated thereto by the Legislature. 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 article: That moneys so deposited shall not be pledged to the repayment of any revenue bonds issued prior to the first day of January, one thousand nine hundred ninety-three, or with respect to revenue bonds issued for the purpose of refunding revenue bonds issued prior to the first day of January, one thousand nine hundred ninety-four. The authority may further provide in the resolution and in the trust agreement for priorities on the revenues paid into the school building 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. On or prior to the 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 state tax commissioner the principal and interest requirements for the following fiscal year on any revenue bonds issued on or after the first day of January, one thousand nine hundred ninety-four, and for which moneys deposited in the school building debt service fund have been pledged, or will be pledged, for repayment pursuant to this section: That before the first day of November, one thousand nine hundred ninety-three, the authority shall also certify to the tax commissioner of the state 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 issued, or to be issued, on or after the first day of January, one thousand nine hundred ninety-four. Expenditures from the fiscal responsibility fund shall be for the purposes set forth in this article, including lease-purchase payments under agreements made pursuant to section three, article nine-d, chapter eighteen of this code and section nine, article five, of said chapter and are authorized from collections in accordance with the provisions of article three, chapter twelve of this code and from other revenues annually appropriated by the Legislature from lottery revenues as authorized by section eighteen, article twenty-two, chapter twenty-nine of this code and from parkway authority revenues as authorized by section thirteen, article sixteen-a, chapter seventeen of this code and upon the fulfillment of the provisions set forth in article two, chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth in this article may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature.
After the authority has issued bonds authorized by this article, and after the requirements of all funds have been satisfied, including reserve funds established in connection with the bonds issued pursuant to this article, any balance remaining in the school building debt service fund may be used for the redemption of any of the outstanding bonds issued hereunder 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 forthwith canceled and shall not again be issued.
(c) There is hereby created in the state treasury a special fund named the school maintenance fund into which shall be deposited on and after the first day of July, one thousand nine hundred ninety-four, the amounts specified in section thirty, article fifteen, chapter eleven of this code, together with any moneys appropriated thereto by the Legislature. Expenditures from the school maintenance fund shall be for the purposes set forth in this article and are authorized from collections in accordance with the provisions of article three, chapter twelve of this code and from other revenues annually appropriated by the Legislature from lottery funds as authorized by section eighteen, article twenty-two, chapter twenty-nine of this code and from parkway funds as authorized by section thirteen, article sixteen-a, chapter seventeen of this code and upon the fulfillment of the provisions set forth in article two, chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth in this article may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature.
(d) The Legislature hereby finds and declares that the supreme court of appeals of West Virginia has held that the issuance of additional revenue bonds authorized under the school building authority act, as enacted in this article prior to the twentieth day of July, one thousand nine hundred ninety-three, constitute an indebtedness of the state in violation of section four, article ten of the constitution of West Virginia, but that revenue bonds issued hereunder prior to the twentieth day of July, one thousand nine hundred ninety-three are not invalid.
The Legislature further finds and declares that the financial capacity of a county to construct, lease and maintain school facilities depends upon the county's bonding capacity (local property wealth), and on voter willingness to pass bond issues and the county's ability to reallocate other available county funds instead of criteria related to educational needs, or upon the ability of the school building authority created in this article to issue bonds that comply with said holding of the West Virginia supreme court of appeals assist counties with the financing of facilities construction, improvement and maintenance. 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 regular session of the West Virginia Legislature in the year one thousand nine hundred ninety-three four, 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 and maintenance of school building facilities, the appropriation of general revenues and authorized appropriations from lottery and parkway funds and the dedication of the consumers sales tax pursuant to said section thirty, article fifteen, chapter eleven of this code to finance such construction, and improvement and maintenance are for the use and benefit of the state, its counties, its municipalities and its other political subdivisions, and such construction, and improvement and maintenance serves the vital public purpose of providing for a thorough and efficient system of free schools in this state. 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, to dedicate a source of state revenue to a special fund for the purpose of paying 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 and maintenance of school building 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, to encourage county boards of education to maintain existing levels of county funding for construction, improvement and maintenance of school building facilities; and to generate additional county funds for such purposes through bonds and special levies whenever possible. The Legislature further encourages the state department of education, the school building authority and county boards of education to propose uniform project specifications for comparable projects whenever possible to meet county needs at the lowest possible cost.
The Legislature further finds and declares that the vast majority of free schools in West Virginia are owned by the counties, and that the reenactment of this section and section thirty, article fifteen, chapter eleven of this code meets the requirements of section six-a, article ten of the constitution of West Virginia. 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, to comply with the provisions of section four, article ten, section six, article ten, section six-a, article ten, and section one, article twelve of the constitution of West Virginia.
§
18
-
9D-8. Use of proceeds of bonds; bonds exempt from
taxation.
The maximum aggregate face value of bonds that may be issued by the authority, for which the moneys in the school building debt service fund are to be pledged, is one hundred eighty-five million dollars. The issuance of revenue bonds under the provisions of this article shall be authorized from time to time by resolution or resolutions of the school building authority, which shall set forth the proposed projects and provide for the issuance of bonds in amounts sufficient, when sold as hereinafter provided, to provide moneys considered sufficient by the authority to pay such costs, less the amounts of any other funds available for said costs or from any appropriation, grant or gift therefor:
bond revenues are to be distributed in accordance with section fifteen of this article shall not be required to set forth the proposed projects in the resolution. Such resolution shall prescribe the rights and duties of the bondholders and the school building authority, and for such purpose may prescribe the form of the trust agreement hereinafter referred to. The bonds may be issued from time to time, in such amounts; shall be of such series; bear such date or dates; mature at such time or times not exceeding forty years from their respective dates; bear interest at such rate or rates; be in such denominations; be in such form, either coupon or registered, carrying such registration, 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 redemption at such prices not exceeding one hundred five percent of the principal amount thereof; and be entitled to such priorities on the revenues paid into the fund pledged for repayment of the bonds as may be provided in the resolution authorizing the issuance of the bonds or in any trust agreement made in connection therewith. The bonds shall be signed by the governor, and by the president or vice president of the authority, under the great seal of the state, attested by the secretary of state, and the coupons attached thereto shall bear the facsimile signature of the president or vice president of the authority. In case any of the officers whose signatures appear on the bonds or coupons cease to be such officers before the delivery of such bonds, such signatures shall nevertheless be valid and sufficient for all purposes the same as if such officers had remained in office until such delivery. Such revenue bonds shall be sold in such manner as the authority may determine to be for the best interests of the state.
Any pledge of revenues for such revenue bonds made by the school building authority for revenue bonds issued prior to the twentieth day of July, one thousand nine hundred ninety-three pursuant to this article shall be valid and binding between the parties from the time the pledge is made; and the revenues so pledged shall immediately be subject to the lien of such pledge without any further physical delivery thereof or further act. The lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise, irrespective of whether such parties have notice of the lien of such pledge, and such pledge shall be a prior and superior charge over any other use of such revenues so pledged.
The proceeds of such any bonds issued by the authority shall be used solely for the purpose or purposes as may be generally or specifically set forth in the resolution authorizing authorization for those bonds and shall be disbursed in such manner and with such restrictions, if any, as the authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement hereinafter referred to securing the same. If the proceeds of such bonds, by error in calculations or otherwise, shall be less than the cost of any projects specifically set forth in the resolution, additional bonds may in like manner be issued to provide the amount of the deficiency; and unless otherwise provided for in the resolution or trust agreement hereinafter mentioned, such additional bonds shall be considered to be of the same issue, and shall be entitled to payment from the same fund, without preference or priority, as the bonds before issued for such projects. If the proceeds of bonds issued for such projects specifically set forth in the authorization for bonds issued by the authority exceed the cost thereof, the surplus may be used for such other projects as the school building authority may determine or in such other manner as the resolution authorizing such bonds may provide. Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue temporary bonds with or without coupons, exchangeable for definitive bonds upon the issuance of such definitive bonds.
After the issuance of any of such revenue bonds, The revenues pledged there for such revenue bonds shall not be reduced as long as any of such 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 such revenue bonds were issued.
Such revenue All bonds issued by the authority and the revenue refunding bonds and bonds issued for combined purposes shall, 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.
To meet the operational costs of the school building authority, the school building authority may transfer to a special revenue account in the state treasury interest on any debt service reserve funds created within any resolution authorizing the issue of bonds or any trust agreement made in connection therewith, for expenditure in accordance with legislative appropriation or allocation of appropriation.
§
18-9D-11. Bonds shall be negotiable instruments.
The revenue bonds, and revenue refunding bonds and bonds issued for combined purposes under the provisions of this article shall, independently of the requirements of any other provision of law and solely by virtue of the provisions of this section, be and have all the qualities and incidents of negotiable instruments.
§
18-9D-13. Sinking fund for payment of bonds.
(a) From the school building capital improvements fund the school building authority shall make periodic payments in an amount sufficient to meet the requirements of any issue of bonds sold under the provisions of this article prior to the first day of January, one thousand nine hundred ninety-four twentieth day of July, one thousand nine hundred ninety-three, or for refunding bonds issued prior to that date therefor, as may be specified in the resolution of the authority authorizing the issue thereof and in any trust agreement entered into in connection therewith. The payments so made shall be placed as specified in such resolution of trust agreement in a special sinking fund which is hereby pledged to and charged with the payment of the principal of the bonds of such issue and the interest thereon, and to the redemption or repurchase of such bonds, such sinking fund to be a fund for all bonds of such issue without distinction or priority of one over another, except as may be provided in the resolution authorizing such issue of bonds. The moneys in the special sinking fund, less such reserve for payment of principal and interest and redemption premium, if any, as may be required by the resolution of the school building authority, authorizing the issue or any trust agreement made in connection therewith, may be used for the redemption of any of the outstanding bonds payable from such fund which by their terms are then redeemable, or for the purchase of bonds at the market price, but at not exceeding the price, if any, at which such bonds shall in the same year be redeemable; and all bonds redeemed or purchased shall forthwith be canceled and shall not again be issued.
(b) From the school building debt service fund, the authority shall make periodic payments in an amount sufficient to meet the requirements of any issue of bonds sold under the provisions of this article on or after the first day of January, one thousand nine hundred ninety-four, and for which the authority has pledged revenues in such fund for the payment of such bonds, as may be specified in the resolution of the authority authorizing the issue thereof or in any trust agreement entered into in connection therewith. The payments so made shall be placed as specified in the resolution or trust agreement in a special sinking fund which is hereby pledged to and charged with the payment of the principal of the bonds of the issue and the interest thereon, and to the redemption or repurchase of the bonds, the sinking fund to be a fund for all bonds of the particular issue without distinction or priority of one over another, except as may be provided in the resolution authorizing the issuance of the bonds. The moneys in the special sinking fund, less the reserve for payment of principal and interest and redemption premium, if any, as may be required by the resolution of the school building authority authorizing the issue or any trust agreement made in connection therewith, may be used for redemption of any of the outstanding bonds payable from the fund which by their terms are then redeemable, or for the purchase of bonds at the market price, but not exceeding the price, if any, at which such bonds shall in the same year be redeemable; and all bonds redeemed or purchased shall forthwith be canceled and shall not again be issued.
§
18-9D-15.
Legislative intent; distribution of money.
(a) It is the intent of the Legislature to empower the school building authority to facilitate and provide state funds for the construction and maintenance of school facilities so as to meet the educational needs of the people of this state in an efficient and economical manner. The authority shall make funding determinations in accordance with the provisions of this article and shall assess existing school facilities and each facilities plan and maintenance plan in relation to the needs of the individual student, the general school population, the communities served by the facilities and facility needs statewide.
(b) An amount that is no more than three percent of the sum of moneys that are determined by the authority to be available for distribution during the then current fiscal year from: (1) Moneys paid into the school building capital improvements fund pursuant to section ten, article nine-a of this chapter; (2) the issuance of revenue bonds for which moneys in the school building capital improvements fund or the school building debt service fund are pledged as security; and (3) moneys paid into the fiscal responsibility fund pursuant to section six of this article and (4) any other moneys received by the authority, except moneys deposited into the school maintenance fund, may be allocated and may be expended by the authority for projects that service the educational community statewide or, upon application by the state board, for educational programs that are under the jurisdiction of the state board.
Fifty percent of the remaining available funds shall be allocated and distributed to each county board on the basis of its net enrollment as defined in section two, article nine-a of this chapter:
be distributed to any county board whose region does not have an approved region-wide facilities plan or to any county board that is not prepared to commence expenditures of such funds during the fiscal year in which the moneys are distributed:
board and not distributed to that county board shall be deposited in an account to the credit of that county board, such principal amount to remain to the credit of and available to the county board for a period of three years. Any moneys which are unexpended after a three-year period shall be redistributed on the basis of net enrollment to those county boards then eligible for the receipt of net enrollment distributions in that fiscal year.
No local matching funds shall be required under the provisions of this subsection, and any county board may use the state moneys provided herein in conjunction with local funds derived from bonding or other source. Any county board may dedicate any allocations of state moneys pursuant to this subsection to the payment of local bonds used for purposes encompassed in an approved facilities plan or for the payment of bonds that are issued by the authority for the benefit of that county that are in addition to the bond moneys distributed in accordance with this subsection.
Moneys made available pursuant to this subsection that shall be expended on projects that benefit more than one district shall be apportioned among the districts in accordance with the formula encompassed in that portion of the facilities plan that addresses the project designed to benefit more than one district.
(c) To encourage regional educational service agencies and county boards to proceed promptly with facilities planning and to prepare for the expenditure of any state moneys derived from the sources described in subsection (b) of this section, any county board failing to expend money within three years of the allocation thereto shall forfeit such allocation and thereafter shall be ineligible for further net enrollment or other allocations pursuant to said subsection until the county board is ready to expend funds in accordance with an approved facilities plan. Any amount so forfeited shall be added to the total funds available for allocation and distribution.
(c) An amount that is no more than two percent of the monies that are determined by the authority to be available for distribution during the then current fiscal year: (1) Moneys paid into the school building capital improvements fund pursuant to section ten, article nine-a of this chapter; (2) the issuance of revenue bonds for which moneys in the school building capital improvements fund are pledged as security; (3) moneys paid into the fiscal responsibility fund pursuant to section six of this article and (4) any other moneys received by the authority, except moneys deposited into the school maintenance fund, shall be set aside by the authority as an emergency fund to be distributed in accordance with the guidelines adopted by the school building authority.
(d) The remaining fifty percent of moneys available for distribution by the authority pursuant to section six of this article shall be allocated and expended on the basis of need and efficient use of resources, such basis to be determined by the authority in accordance with the provisions of section sixteen of this article. To encourage county boards to proceed promptly with facilities planning and to prepare for the expenditure of any state moneys derived from the sources described in this subsection, any county board failing to expend money within three years of the allocation thereto shall forfeit such allocation and thereafter shall be ineligible for further allocations pursuant to this subsection until the county board is ready to expend funds in accordance with an approved facilities plan;
Provided, however
,
That the authority may authorize an extension beyond the three year forfeiture period not to exceed an additional two years. Any amount so forfeited shall be added to the total funds available in the fiscal responsibility fund to the authority for allocation and distribution.
(e) A portion of moneys that are available for distribution during the then current fiscal year by the authority from moneys paid into the school maintenance fund pursuant to section six of this article shall be set aside as a special fund for distribution to area vocational educational centers for school maintenance projects. Amounts set aside for the purposes of this subsection shall be equal to the percentage of students in the area vocational educational schools compared with total net student enrollment statewide and shall be distributed to area vocational educational centers based upon total enrollment of each area vocational educational center and expended in accordance with guidelines developed by the authority.
(f) The remaining moneys that are determined by the authority to be available for distribution during the then current fiscal year from moneys paid into the school maintenance fund pursuant to section six of this article, after setting aside those moneys referenced above in subsection (e) of this section, for school maintenance projects at area vocational educational centers, shall be allocated and distributed to each county board on the basis of its net enrollment as defined in section two, article nine-a of this chapter:
Provided,
That such moneys shall not be distributed to any county board that does not have an approved county-wide school maintenance plan or to any county board that is not prepared to commence expenditures of such funds during the fiscal year in which the moneys are distributed:
Provided, however,
That any moneys allocated to a county board and not distributed to that county board shall be deposited in an account to the credit of that county board, such principal amount to remain to the credit of and available to the county board for a period of two years. Any moneys which are unexpended after a two-year period shall be redistributed on the basis of net enrollment to those county boards then eligible for the receipt of net enrollment distributions from the school maintenance fund in that fiscal year.
(g) No local matching funds shall be required under the provisions of this section. However, it is not the intent of the Legislature to negate the responsibilities of the county boards of education to maintain school facilities, therefore, to be eligible for state school maintenance funds, the county board of education must have expended in the previous fiscal year an amount of county funds equal to or exceeding the average amounts of money included in the maintenance budget of that county board of education over the lowest three years of the previous five year period. Any county board may use the state moneys provided herein in conjunction with local funds derived from bonding, special levy or other sources. Distribution to the county boards may be in a lump sum or in accordance with a schedule of payments adopted by the authority pursuant to such guidelines as it shall adopt.
§
18-9D-16. Facilities and maintenance plans generally;
need-based eligibility.
(a) To facilitate the goals as stated in section fifteen of this article and to assure the prudent and resourceful expenditure of state funds derived from the fiscal responsibility fund, as described in subsection (d), section fifteen of this article, each regional educational service agency created pursuant to section twenty-six, article two of this chapter county board of education shall submit a region county-wide facilities plan that addresses the facilities needs of each district within the region county pursuant to such guidelines as shall be adopted by the authority in accordance with this section and in accordance with each district's county's comprehensive school facilities plan approved by the state board of education. Any project receiving funding shall be in furtherance of such approved region county-wide facilities plan.
(b)(1) To assure efficiency and productivity in the project approval process, the region county-wide facilities plan shall be submitted only after a preliminary plan, a plan outline or a proposal for a plan has been submitted to the authority. Selected members of the authority, which selection shall include citizen members, shall then meet promptly with those persons designated by the regional educational service agency, including one person from each county within the region, county board to attend the facilities plan consultation. The purpose of the consultation is to assure understanding of the general goals of the school building authority and the specific goals encompassed in the following criteria and to discuss ways the plan may be structured to meet those goals.
(c)(2) The guidelines for the development of a facilities plan shall state the manner, timeline and process for submission of any plan to the authority; such project specifications as may be deemed appropriate by the authority; and those matters which are deemed by the authority to be important reflections of how the project will further the overall goals of the authority.
(b) To facilitate the goals as stated in subsections (e), (f) and (g) of section fifteen of this article and to assure the prudent and resourceful expenditure of state funds derived from the school maintenance fund, each county board of education and regional vocational educational centers shall submit a ten-year county-wide school maintenance plan that addresses the maintenance needs of each school within the county pursuant to such guidelines as shall be adopted by the authority in accordance with this section. The ten-year school maintenance plan shall be updated annually to reflect projects completed and new or continuing needs. Any school maintenance project receiving funding shall be in furtherance of such approved county-wide school maintenance plan.
(1) To assure efficiency and productivity in the project approval process, the ten-year county-wide school maintenance plan shall be submitted only after a preliminary plan, a plan outline or a proposal for a plan has been submitted to the authority. Selected members of the authority, which selection shall include citizen members, shall then meet promptly with those persons designated by the county board to attend the school maintenance plan consultation. The purpose of the consultation is to assure understanding of the general goals of the school building authority and the guidelines for the school maintenance plan.
(2) The guidelines for the development and annual updates of a ten-year school maintenance plan shall state the manner, timeline and process for submission of any plan, including the county's repair and replacement schedule for school facilities, to the authority; such maintenance specifications as may be deemed appropriate by the authority; and those matters which are deemed by the authority to be important reflections of how the school maintenance project or projects will further the overall goals of the authority.
(c) The guidelines regarding submission of the facilities plans and school maintenance plans shall include requirements for public hearings, comments or other means of providing broad-based input within a reasonable time period as the authority may deem appropriate. The submission of each facilities plan and each school maintenance plan shall be accompanied by a synopsis of all comments received and a formal comment by each county board included in the region.
The guidelines regarding project specifications may include such matters as energy efficiency, preferred siting, construction materials, maintenance plan or any other matter related to how the capital improvement project is to proceed. The guidelines pertaining to quality educational facilities shall require that a facilities plan address how the current facilities do not meet and the proposed plan and how any project thereunder does meet the following goals:
(1) Student health and safety;
(2) Economies of scale, including compatibility with similar schools that have achieved the most economical organization, facility utilization and pupil-teacher ratios;
(3) Reasonable travel time and practical means of addressing other demographic considerations;
(4) Multi-county and regional planning to achieve the most effective and efficient instructional delivery system;
(5) Curriculum improvement and diversification, including computerization and technology and advanced senior courses in science, mathematics, language arts and social studies;
(6) Innovations in education such as year-round schools and community-based programs; and
(7) Adequate space for projected student enrollments.
If the project is to benefit more than one county in the region, the facilities plan shall state the manner in which the cost and funding of the project shall be apportioned among the counties.
(d) The guidelines pertaining to quality educational facilities shall require that a school maintenance plan address how the proposed plan and any project thereunder meet the following goals:
(1) Student health and safety, including but not limited to critical health and safety needs; and
(2) Economies of scale, including regularly scheduled preventive maintenance for all facilities within the counties.
(e) Each facilities plan and school maintenance plan shall prioritize all the facilities projects or school maintenance projects, respectively, both within a the county and among the counties, which priority list shall be one of the criteria to be considered by the authority in determining how available funds shall be expended. In prioritizing the projects, each regional educational service agency county board shall make determinations in accordance with the objective criteria formulated by the school building authority.
(e) (f) Each facilities plan and school maintenance plan shall include the objective means to be utilized in evaluating implementation of the overall plan and each project included therein. Such evaluation shall measure each project's furtherance of each goal stated in this section and any guidelines adopted hereunder, as well as the overall success of any project as it relates to the facilities plan or school maintenance plan of its the region county and the overall goals of the authority.
(f) (g) The authority may adopt guidelines for requiring that a regional educational service agency county board modify, update, supplement or otherwise submit changes or additions to an approved facilities plan or school maintenance plan and shall provide reasonable notification and sufficient time for such change or addition.
§
18-9D-18.
If any part of this article is declared unconstitutional or invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this article, or the article in its entirety.
§
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 created a special fund in the state treasury which shall be designated and known as the "state lottery fund." The fund shall consist 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 herein provided for the purposes stated herein 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 shall 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 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) shall be allocated as net profit. The director is authorized to expend the necessary percentage of the amount allocated as net profit, not to exceed six percent of the gross amount received, for the purposes of entering into contractual arrangements for the acquisition, financing, lease and lease-purchase, and other financing transactions, of lottery goods and services, including tickets, equipment, machinery, electronic computer systems and terminals, and supplies and maintenance therefor, for the first thirty-six months of operation, and may apportion the costs, expenses and expenditures related thereto among the commission, vendor or vendors and licensed lottery sales agents. In the event that the percentage allotted for operations and administration generates a surplus, the surplus will 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) Annually, the Legislature shall appropriate all of the amounts allocated as net profits above, in such proportions as it deems beneficial to the citizens of this state, to (1) the lottery education fund created in subsection (g) of this section, (2) the school building authority created in section one, article nine-d, chapter eighteen of this code, in accordance with subsection (h) of this section, (2)(3) the lottery senior citizens fund created in subsection (h)(i) of this section, and (3)(4) the commerce division created in article one, chapter five-b of this code, in accordance with subsection (i)(j) of this section.
(g) There is hereby created a special 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 amounts 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 shall 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 such educational programs as it considers beneficial to the citizens of this state.
(h) The school building authority may use the amounts allocated to it pursuant to subsection (f) of this section for the payment of any or all of the costs incurred by one or more county boards of education for capital improvement projects or school maintenance projects, as such terms are defined in section two, article nine-d, chapter eighteen of this code, to which moneys are allocated by the school building authority pursuant to section sixteen, article nine-d, chapter eighteen of this code.
(h)(i) There is hereby created a special 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 disbursed in the manner provided below and shall 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.
(i)(j) The commerce division may use the amounts allocated to it 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 such terms are defined in section thirteen-a, article one, chapter five-b of this code, pursuant to the authority granted to it under article one, chapter five-b 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 commerce division under article one, chapter five-b 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 create the fiscal responsibility fund and the school maintenance fund, both to be distributed to county boards of education by the school building authority to finance public school construction and maintenance on a currently funded basis, and to dedicate a portion of consumers sales tax collections to the fiscal responsibility fund and the school maintenance fund, beginning in fiscal year 1996, and to appropriate $5 million from the parkway authority to be deposited in the fiscal responsibility fund before January 1, 1995, and to authorize the Legislature to appropriate moneys from lottery revenues to the fiscal responsibility fund and the school maintenance fund.
FINANCE COMMITTEE AMENDMENT
On page two, line six, by striking out everything following the enacting clause and inserting in lieu thereof the following:
That section thirty-a, article fifteen, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that section ten, article nine-d, chapter eighteen be repealed; that section thirty, article fifteen of said chapter eleven be amended and reenacted; that section thirteen, article sixteen-a, chapter seventeen be amended and reenacted; that sections two, three, four, six, eight, eleven, thirteen, fifteen and sixteen, article nine-d, chapter eighteen of said code be amended and reenacted; that said article be further amended by adding thereto a new section, designated section eighteen; and that section eighteen, article twenty-two, chapter twenty-nine 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.
(a) School maintenance fund.
(1) Beginning the first day of November, one thousand nine hundred ninety-three July, one thousand nine hundred ninety-five, and continuing on the first day of each succeeding month thereafter, through the thirtieth day of June, one thousand nine hundred ninety-six, 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 whatsoever, an the 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 bond 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 said section:
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 and interest requirements certified to the tax commissioner as aforesaid, or twelve million dollars of four hundred sixteen thousand six hundred sixty-six dollars and the amount dedicated shall be deposited on a monthly basis into the school building debt service maintenance fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(2) Beginning the first day of July, one thousand nine hundred ninety-six through the thirtieth day of June, one thousand nine hundred ninety-seven, 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 whatsoever, the amount of six hundred sixty-six thousand six hundred sixty-seven dollars and the amount dedicated shall be deposited on a monthly basis into the school maintenance fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(3) Beginning the first day of July, one thousand nine hundred ninety-seven, and continuing on the first day of each 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 purposes whatsoever, the amount of one million two hundred fifty thousand dollars and the amount dedicated shall be deposited on a monthly basis into the school maintenance fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(b) Fiscal responsibility fund.
(1) Beginning the first day of July, one thousand nine hundred ninety-five, and continuing on the first day of each succeeding month thereafter through the thirtieth day of June, one thousand nine hundred ninety-six, 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 whatsoever, the amount of two million nine hundred sixteen thousand six hundred sixty-seven dollars and the amount dedicated shall be deposited into the fiscal responsibility fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(2) Beginning the first day of July, one thousand nine hundred ninety-six, and continuing on the first day of each succeeding month thereafter through the last day of June, one thousand nine hundred ninety-seven, 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 whatsoever, the amount of five million one hundred sixty-six thousand six hundred sixty-seven dollars and the amount dedicated shall be deposited into the fiscal responsibility fund created pursuant to section six, article nine-d, chapter eighteen of this code.
(3) Beginning the first day of July, one thousand nine hundred ninety-seven, 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 whatsoever, the amount of three million seven hundred fifty thousand dollars and the amount dedicated shall be deposited into the fiscal responsibility fund created pursuant to section six, article nine-d, chapter eighteen of this code.
CHAPTER 17. ROADS AND HIGHWAYS.
ARTICLE 16A. WEST VIRGINIA PARKWAYS, ECONOMIC DEVELOPMENT AND
TOURISM AUTHORITY
§
17
-
16A
-
13. Tolls, rents, fees, charges and revenues;
competitive bidding on contracts.
(a) The parkways authority is hereby authorized to fix, revise, charge and collect tolls for the use of each parkway project and the different parts or sections thereof, and to fix, revise, charge and collect rents, fees, charges and other revenues, of whatever kind or character, for the use of each economic development project or tourism project, or any part or section thereof, and to contract with any person, partnership, association or corporation desiring the use of any part thereof, including the right-of-way adjoining the paved portion, for placing thereon telephone, telegraph, electric light, power or other utility lines, gas stations, garages, stores, hotels, restaurants and advertising signs, or for any other purpose except for tracks for railroad or railway use, and to fix the terms, conditions, rents and rates of charges for such use. Such tolls, rents, fees and charges shall be so fixed and adjusted in respect of the aggregate of tolls, or in respect of the aggregate rents, fees and charges, from the project or projects in connection with which the bonds of any issue shall have been issued as to provide a fund sufficient with other revenues, if any, to pay (a) the cost of maintaining, repairing and operating such project or projects and (b) the principal of and the interest on such bonds as the same shall become due and payable, and to create reserves for such purposes. Such tolls, rents, fees and other charges shall not be subject to supervision or regulation by any other commission, board, bureau, department or agency of the state. The tolls, rents, fees, charges and all other revenues derived from the project or projects in connection with which the bonds of any issue shall have been issued, except such part thereof as may be necessary to pay such cost of maintenance, repair and operation and to provide such reserves therefor as may be provided for in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or such trust agreement in a sinking fund which is hereby pledged to, and charged with, the payment of (1) the interest upon such bonds as such interest shall fall due, (2) the principal of such bonds as the same shall fall due, (3) the necessary charges of paying agents for paying principal and interest, and (4) the redemption price or the purchase price of bonds retired by call or purchase as therein provided. The use and disposition of moneys to the credit of such sinking fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking fund shall be a fund for all such bonds without distinction or priority of one over another. The moneys in the sinking fund, less such reserve as may be provided in such resolution or trust agreement, if not used within a reasonable time for the purchase of bonds for cancellation as above provided, shall be applied to the redemption of bonds at the redemption price then applicable.
(b) Notwithstanding any other provision of this article, after setting aside certain rents, fees, charges and other revenues pursuant to subsection (a) of this section, on or after the first day of July, one thousand nine hundred ninety-four, the parkways authority shall transfer a total amount of five million dollars from remaining moneys available to the authority from concessions, rents, fees, charges and other revenues together with all interest earned on such concessions, rents, fees, charges and other revenues to the fiscal responsibility fund created in section six, article nine-d, chapter eighteen of this code, to be used for the purposes specified in section sixteen of said article:
Provided,
That no revenues from tolls shall be transferred pursuant to this subsection:
Provided, however,
That the transfer of a total amount of five million dollars shall be completed on or before the thirty-first day of January, one thousand nine hundred ninety-five:
Provided further,
That any moneys transferred to the fiscal responsibility fund pursuant to this subsection shall be expended in a county through which the West Virginia Turnpike runs or in a county contiguous to a county through which the West Virginia Turnpike runs.
(c) The parkways authority shall cause, as soon as it is legally able to do so, all contracts to which it is a party and which relate to the operation, maintenance or use of any restaurant, motel or other lodging facility, truck and automobile service facility, food vending facility or any other service facility located along the West Virginia Turnpike, to be renewed on a competitive bid basis. All contracts relating to any facility or services entered into by the parkways authority with a private party with respect to any project constructed after the effective date of this legislation shall be let on a competitive bid basis only. If the parkways authority receives a proposal for the development of a project, such proposal shall be made available to the public in a convenient location in the county wherein the proposed facility may be located. The parkways authority shall publish a notice of the proposal by a Class I legal advertisement in accordance with the provisions of article three, chapter fifty-nine of this code. The publication area shall be the county in which the proposed facility would be located. Any citizen may communicate by writing to the parkways authority his or her opposition to or approval to such proposal within a period of time not less than forty-five days from the publication of the notice. No contract for the development of a project may be entered into by the parkways authority until a public hearing is held in the vicinity of the location of the proposed project with at least twenty days notice of such hearing by a Class I publication pursuant to section two, article three, chapter fifty-nine of this code. The parkways authority shall make written findings of fact prior to rendering a decision on any proposed project. All studies, records, documents and other materials which are considered by the parkways authority in making such findings shall be made available for public inspection at the time of the publication of the notice of public hearing and at a convenient location in the county where the proposed project may be located. The parkways authority shall promulgate rules in accordance with chapter twenty-nine-a of this code for the conduct of any hearing required by this section. Persons attending any such hearing shall be afforded a reasonable opportunity to speak and be heard on the proposed project.
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§
18-9D-2. Definitions.
The following terms, wherever used or referred to in this article, have the following meanings, unless a different meaning clearly appears from the context:
(1) "Authority" means the school building authority of West Virginia or, if said authority shall be abolished, any board or officer succeeding to the principal functions thereof, or to whom the powers given to said authority shall be given by law;
(2) "Bonds" means bonds issued by the authority pursuant to this article;
(3) "Project" or "Capital improvement project" means the new construction, major renovation, repair and safety upgrading of facilities, buildings and structures for school purposes including the acquisition of land for current or future use in connection therewith, as well as new or upgrading of existing equipment, machinery, furnishings, installation of utilities and other similar items convenient in connection with placing the foregoing into operation, but may not include such items as books, computers or equipment used for instructional purposes, fuel, supplies, utility services, and other items which are customarily deemed to result in a current operating charge;
(4) "Cost of project" means the cost of construction, renovation, repair and safety upgrading of facilities, buildings and structures for school purposes; the cost of land, equipment, machinery, furnishings, installation of utilities and other similar items convenient in connection with placing the foregoing into operation; and the cost of financing, interest during construction, professional service fees and all other charges or expenses necessary, appurtenant or incidental to the foregoing, including the cost of administration of this article;
(5) "Revenue" or "revenues" means moneys deposited in the school building capital improvements fund pursuant to the operation of section ten, article nine-a of this chapter; moneys deposited in the school building debt service fund pursuant to the operation of section thirty, article fifteen, chapter eleven of this code; any moneys received, directly or indirectly, from any source for the use of all or any part of any project completed pursuant to this article; and any other moneys received by the authority for the purposes of this article;
(6) (5) "Facilities plan" means the regional county comprehensive educational facilities plan for school facilities required prior to the distribution of state funds to any county board pursuant to subsection (a), section fifteen sixteen of this article; and
(6) "Project" means a capital improvement project or a school maintenance project;
(7) "Region" means the area encompassed within and serviced by a regional educational service agency established pursuant to section twenty-six, article two of this chapter;
(8) "Revenue" or "revenues" means moneys deposited in the school building capital improvements fund pursuant to the operation of section ten, article nine-a of this chapter; moneys deposited in the fiscal responsibility fund pursuant to the operation of section thirty, article fifteen, chapter eleven of this code; moneys deposited in the school maintenance fund pursuant to the operation of section thirty, article fifteen, chapter eleven of this code; any moneys received, directly or indirectly, from any source for use in any project completed pursuant to this article; and any other moneys received by the authority for the purposes of this article;
(9) "School maintenance plan" means the ten-year school maintenance plan to be prepared by each county board of education, and by the state board of education or the administrative council of an area vocational educational center if such entity seeks funding from the authority for a school maintenance project, which school maintenance plan is required prior to the distribution of state funds for a school maintenance project pursuant to subsection (b), section sixteen of this article; and
(10) "School maintenance project" means the repair and safety upgrading of existing school facilities, buildings and structures, including the repair or upgrading of equipment, machinery, building systems, utilities and other similar items convenient in connection with such repair or upgrading, but may not include such items as books, computers or equipment used for instructional purposes, fuel, supplies, utility services and other items which are customarily deemed to result in a current operating charge.
§
18-9D-3. Powers of authority.
The school building authority has the power:
(1) To sue and be sued, plead and be impleaded;
(2) To have a seal and alter the same at pleasure;
(3) To contract to acquire and to acquire, in the name of the authority by purchase, lease- purchase not to exceed a term of twenty-five years, or otherwise, real property or rights or easements necessary or convenient for its corporate purposes and to exercise the power of eminent domain to accomplish such purposes;
(4) To acquire, hold and dispose of real and personal property for its corporate purposes;
(5) To make bylaws for the management and rule of its affairs;
(6) To use the facilities, office, assistants and employees of the attorney general in all legal matters relating to litigation involving the authority;
(7) Except as limited in subdivision (6), to appoint, contract with and employ attorneys, bond counsel, accountants, construction and financial experts, underwriters, financial advisers, trustees, managers, officers and such other employees and agents as may be necessary in the judgment of the authority and to fix their compensation;
(8) To make contracts and to execute all instruments necessary or convenient to effectuate the intent of, and to exercise the powers granted to it by this article;
(9) To renegotiate all contracts entered into by it whenever, due to a change in situation, it appears to the authority that its interests will be best served;
(10) To acquire by purchase, eminent domain or otherwise all real property or interests therein necessary or convenient to accomplish the purposes of this article;
(11) To require proper maintenance and insurance of any project authorized hereunder;
(12) To charge rent for the use of all or any part of a project or buildings at any time financed, constructed, acquired or improved, in whole or in part, with the revenues of the authority;
(13) To assist any county board of education that chooses to acquire land, buildings and capital improvements to existing school buildings and property for use as public school facilities, by lease from a private or public lessor for a term not to exceed twenty-five years, with or without an option to purchase pursuant to an investment contract with said lessor, for use as public school facilities on such terms and conditions as may be determined to be in the best interests of the authority, the state board of education and such county board of education, and consistent with the purposes of this article, by transferring funds to the state board of education as provided in subsection (d), section fifteen of this article for the use of such county board of education;
(14) To accept and expend any gift, grant, contribution, bequest or endowment of money to, or for the benefit of, the authority, from the state of West Virginia or any other source for any or all of the purposes specified in this article or for any one or more of such purposes as may be specified in connection with such gift, grant, contribution, bequest or endowment;
(15) To enter on any lands and premises for the purpose of making surveys, soundings and examinations;
(16) To contract for architectural, engineering or other professional services considered necessary or economical by the authority to provide consultative or other services to the authority or to any regional educational service agency or county board requesting professional services offered by the authority, to evaluate any facilities plan or any project encompassed therein, to inspect existing facilities or any project that has received or may receive funding from the authority, or to perform any other service considered by the authority to be necessary or economical. Assistance to the region or district may include the development of preapproved systems, plans, designs, models or documents; advice or oversight on any plan or project; or any other service that may be efficiently provided to regional educational service agencies or county boards by the authority;
(17) To provide funds on an emergency basis to repair or replace property damaged by fire, flood, wind, storm, earthquake or other natural occurrence, such funds to be made available in accordance with guidelines of the school building authority; and
(18) To do all things necessary or convenient to carry out the powers given in this article.
§
18-9D-4. School building authority authorized to issue
refunding revenue bonds and/or general
obligation bonds for school building capital
improvement projects.
(a) The school building authority may by resolution, in accordance with the provisions of this article, issue revenue bonds of the authority from time to time, either to finance the cost of school building capital improvement projects for public schools in this state, or to refund, at the discretion of the authority, bonds issued to finance the cost of school building capital improvement projects for public schools in this state and outstanding under and pursuant to the provisions of this article as in effect prior to the twentieth day of July, one thousand nine hundred and ninety-three. The principal of, interest and redemption premium, if any, on such bonds shall be payable solely from the special capital improvements fund herein provided for such payment.
(b) The school building authority may, in accordance with the provisions of the West Virginia Constitution, issue general obligation bonds from time to time as authorized by referendum pursuant to resolution duly adopted by the Legislature, to finance the cost of school building capital improvement projects for public schools in this state.
§
18
-
9D-6. School building capital improvements fund in
state treasury; fiscal responsibility fund in
state
treasury;
school maintenance fund in
state treasury; collections to be paid into
special funds; authority to pledge such
collections as security for refunding revenue
bonds; authority to finance projects on a cash
basis.
(a) There is continued in the state treasury a school building capital improvements fund to be expended by the authority as provided in this article.
The school building authority shall have authority to pledge all or such part of the revenues paid into the school building capital improvements fund as may be needed to meet the requirements of any revenue bond issue or issues authorized by this article prior to the first day of January, one thousand nine hundred ninety-four twentieth day of July, one thousand nine hundred ninety-three, or revenue bonds issued to refund revenue bonds issued prior to that date, including the payment of principal of, interest and redemption premium, if any, on such revenue bonds and the establishing and maintaining of a reserve fund or funds for the payment of the principal of, interest and redemption premium, if any, on such revenue bond issue or issues when other moneys pledged may be insufficient therefor, including such additional protective pledge of revenues as the authority in its discretion has provided by resolution authorizing the issue of such bonds or in any trust agreement made in connection therewith. The authority may further provide in such resolution and in such trust agreement for such priorities on the revenues paid into such school building capital improvements 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.
Any balance remaining in the school building capital improvements fund after the authority has issued bonds authorized by this article, and after the requirements of all funds including reserve funds established in connection with the bonds issued prior to the twentieth day of July, one thousand nine hundred ninety-three pursuant to this article have been satisfied, may be used for the redemption of any of the outstanding bonds issued hereunder which by their terms are then redeemable, or for the purchase of such bonds at the market price, but not exceeding the price, if any, at which such bonds shall in the same year be redeemable, and all bonds redeemed or purchased shall forthwith be canceled and shall not again be issued.
The school building authority, in its discretion, may use the moneys in the school building capital improvements fund to finance the cost of projects on a cash basis. Any pledge of moneys in such fund for revenue bonds issued prior to the twentieth day of July, one thousand nine hundred ninety-three shall be a prior and superior charge on such fund over the use of any of the moneys in such fund to pay for the cost of any project on a cash basis:
Provided,
That any expenditures from such fund, other than for the retirement of revenue bonds, may only be made by the authority in accordance with the provisions of this article.
(b) There is hereby created in the state treasury a special fund named the school building debt service fiscal responsibility fund into which shall be deposited on and after the first day of November, one thousand nine hundred ninety-three July, one thousand nine hundred ninety-four, the amounts specified in section thirty, article fifteen, chapter eleven of this code, together with any moneys appropriated thereto by the Legislature. 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 article: That moneys so deposited shall not be pledged to the repayment of any revenue bonds issued prior to the first day of January, one thousand nine hundred ninety-three, or with respect to revenue bonds issued for the purpose of refunding revenue bonds issued prior to the first day of January, one thousand nine hundred ninety-four. The authority may further provide in the resolution and in the trust agreement for priorities on the revenues paid into the school building 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. On or prior to the 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 state tax commissioner the principal and interest requirements for the following fiscal year on any revenue bonds issued on or after the first day of January, one thousand nine hundred ninety-four, and for which moneys deposited in the school building debt service fund have been pledged, or will be pledged, for repayment pursuant to this section: That before the first day of November, one thousand nine hundred ninety-three, the authority shall also certify to the tax commissioner of the state 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 issued, or to be issued, on or after the first day of January, one thousand nine hundred ninety-four. Expenditures from the fiscal responsibility fund shall be for the purposes set forth in this article, including lease-purchase payments under agreements made pursuant to subsection (d), section fifteen of this article and section nine, article five of this chapter and are authorized from collections in accordance with the provisions of article three, chapter twelve of this code and from other revenues annually appropriated by the Legislature from lottery revenues as authorized by section eighteen, article twenty-two, chapter twenty-nine of this code and parkways authority revenues as authorized by section thirteen, article sixteen-a, chapter seventeen of this code, pursuant to the provisions set forth in article two, chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth in this article may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature.
After the authority has issued bonds authorized by this article, and after the requirements of all funds have been satisfied, including reserve funds established in connection with the bonds issued pursuant to this article, any balance remaining in the school building debt service fund may be used for the redemption of any of the outstanding bonds issued hereunder 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 forthwith canceled and shall not again be issued.
(c) There is hereby created in the state treasury a special fund named the school maintenance fund into which shall be deposited on and after the first day of July, one thousand nine hundred ninety-four, the amounts specified in section thirty, article fifteen, chapter eleven of this code, together with any moneys appropriated thereto by the Legislature. Expenditures from the school maintenance fund shall be for the purposes set forth in this article and are authorized from collections in accordance with the provisions of article three, chapter twelve of this code and from other revenues annually appropriated by the Legislature from lottery revenues as authorized by section eighteen, article twenty-two, chapter twenty-nine of this code and parkways authority revenues as authorized by section thirteen, article sixteen-a, chapter seventeen of this code, pursuant to the provisions set forth in article two, chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth in this article may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature.
(d) The Legislature hereby finds and declares that the supreme court of appeals of West Virginia has held that the issuance of additional revenue bonds authorized under the school building authority act, as enacted in this article prior to the twentieth day of July, one thousand nine hundred ninety-three, constitute an indebtedness of the state in violation of section four, article ten of the constitution of West Virginia, but that revenue bonds issued hereunder prior to the twentieth day of July, one thousand nine hundred ninety-three are not invalid.
The Legislature further finds and declares that the financial capacity of a county to construct, lease and maintain school facilities depends upon the county's bonding capacity (local property wealth), and on voter willingness to pass bond issues and the county's ability to reallocate other available county funds instead of criteria related to educational needs, or upon the ability of the school building authority created in this article to issue bonds that comply with said holding of the West Virginia supreme court of appeals assist counties with the financing of facilities construction, improvement and maintenance. 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 regular session of the West Virginia Legislature in the year one thousand nine hundred ninety-three four, 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 and maintenance of school building facilities, the appropriation of general revenues, the appropriation of lottery revenues pursuant to section eighteen, article twenty-two, chapter twenty-nine of this code, the appropriation of parkways authority revenues pursuant to section thirteen, article sixteen-a, chapter seventeen of this code, and the dedication of the consumers sales tax pursuant to said section thirty, article fifteen, chapter eleven of this code to finance such construction, and improvement and maintenance are for the use and benefit of the state, its counties, its municipalities and its other political subdivisions, and such construction, and improvement and maintenance serves the vital public purpose of providing for a thorough and efficient system of free schools in this state. 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, to dedicate a source of state revenue to a two special funds for the purposes of paying 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 and maintenance of school building 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, section eighteen, article twenty-two, chapter twenty-nine of this code, and section thirteen, article sixteen-a, chapter seventeen of this code, to encourage county boards of education to maintain existing levels of county funding for construction, improvement and maintenance of school building facilities and to generate additional county funds for such purposes through bonds and special levies whenever possible. The Legislature further encourages the school building authority, the state board of education and county boards of education to propose uniform project specifications for comparable projects whenever possible to meet county needs at the lowest possible cost.
The Legislature further finds and declares that the vast majority of free schools in West Virginia are owned by the counties, and that the reenactment of this section and section thirty, article fifteen, chapter eleven of this code, section eighteen, article twenty-two, chapter twenty-nine of this code, and section thirteen, article sixteen-a, chapter seventeen of this code meets the requirements of section six-a, article ten of the constitution of West Virginia. 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, section eighteen, article twenty-two, chapter twenty-nine of this code, and section thirteen, article sixteen-a, chapter seventeen of this code, to comply with the provisions of section four, article ten; section six, article ten; section six-a, article ten; and section one, article twelve of the constitution of West Virginia.
§
18
-
9D-8. Use of proceeds of bonds; bonds exempt from
taxation.
The maximum aggregate face value of bonds that may be issued by the authority, for which the moneys in the school building debt service fund are to be pledged, is one hundred eighty-five million dollars. The issuance of revenue bonds under the provisions of this article shall be authorized from time to time by resolution or resolutions of the school building authority, which shall set forth the proposed projects and provide for the issuance of bonds in amounts sufficient, when sold as hereinafter provided, to provide moneys considered sufficient by the authority to pay such costs, less the amounts of any other funds available for said costs or from any appropriation, grant or gift therefor:
bond revenues are to be distributed in accordance with section fifteen of this article shall not be required to set forth the proposed projects in the resolution. Such resolution shall prescribe the rights and duties of the bondholders and the school building authority, and for such purpose may prescribe the form of the trust agreement hereinafter referred to. The bonds may be issued from time to time, in such amounts; shall be of such series; bear such date or dates; mature at such time or times not exceeding forty years from their respective dates; bear interest at such rate or rates; be in such denominations; be in such form, either coupon or registered, carrying such registration, 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 redemption at such prices not exceeding one hundred five percent of the principal amount thereof; and be entitled to such priorities on the revenues paid into the fund pledged for repayment of the bonds as may be provided in the resolution authorizing the issuance of the bonds or in any trust agreement made in connection therewith. The bonds shall be signed by the governor, and by the president or vice president of the authority, under the great seal of the state, attested by the secretary of state, and the coupons attached thereto shall bear the facsimile signature of the president or vice president of the authority. In case any of the officers whose signatures appear on the bonds or coupons cease to be such officers before the delivery of such bonds, such signatures shall nevertheless be valid and sufficient for all purposes the same as if such officers had remained in office until such delivery. Such revenue bonds shall be sold in such manner as the authority may determine to be for the best interests of the state.
Any pledge of revenues for such revenue bonds made by the school building authority for revenue bonds issued prior to the twentieth day of July, one thousand nine hundred ninety-three pursuant to this article shall be valid and binding between the parties from the time the pledge is made; and the revenues so pledged shall immediately be subject to the lien of such pledge without any further physical delivery thereof or further act. The lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise, irrespective of whether such parties have notice of the lien of such pledge, and such pledge shall be a prior and superior charge over any other use of such revenues so pledged.
The proceeds of such any bonds issued by the authority shall be used solely for the purpose or purposes as may be generally or specifically set forth in the resolution authorizing those bonds and shall be disbursed in such manner and with such restrictions, if any, as the authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement hereinafter referred to securing the same. If the proceeds of such bonds, by error in calculations or otherwise, shall be less than the cost of any projects specifically set forth in the resolution, additional bonds may in like manner be issued to provide the amount of the deficiency; and unless otherwise provided for in the resolution or trust agreement hereinafter mentioned, such additional bonds shall be considered to be of the same issue, and shall be entitled to payment from the same fund, without preference or priority, as the bonds before issued for such projects. If the proceeds of bonds issued for such projects specifically set forth in the resolution authorizing such bonds issued by the authority exceed the cost thereof, the surplus may be used for such other projects as the school building authority may determine or in such other manner as the resolution authorizing such bonds may provide. Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue temporary bonds with or without coupons, exchangeable for definitive bonds upon the issuance of such definitive bonds.
After the issuance of any of such revenue bonds, The revenues pledged therefor such revenue bonds shall not be reduced as long as any of such 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 such revenue bonds were issued.
Such revenue All bonds issued by the authority and the revenue refunding bonds and bonds issued for combined purposes shall, 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.
To meet the operational costs of the school building authority, the school building authority may transfer to a special revenue account in the state treasury interest on any debt service reserve funds created within any resolution authorizing the issue of bonds or any trust agreement made in connection therewith, for expenditure in accordance with legislative appropriation or allocation of appropriation.
§
18-9D-11. Bonds shall be negotiable instruments.
The revenue bonds, and revenue refunding bonds and bonds issued for combined purposes under the provisions of this article shall, independently of the requirements of any other provision of law and solely by virtue of the provisions of this section, be and have all the qualities and incidents of negotiable instruments.
§
18-9D-13. Sinking fund for payment of bonds.
(a) From the school building capital improvements fund the school building authority shall make periodic payments in an amount sufficient to meet the requirements of any issue of bonds sold under the provisions of this article prior to the first day of January, one thousand nine hundred ninety-four twentieth day of July, one thousand nine hundred ninety-three, or for refunding bonds issued prior to that date therefor; as may be specified in the resolution of the authority authorizing the issue thereof and in any trust agreement entered into in connection therewith. The payments so made shall be placed as specified in such resolution of trust agreement in a special sinking fund which is hereby pledged to and charged with the payment of the principal of the bonds of such issue and the interest thereon, and to the redemption or repurchase of such bonds, such sinking fund to be a fund for all bonds of such issue without distinction or priority of one over another, except as may be provided in the resolution authorizing such issue of bonds. The moneys in the special sinking fund, less such reserve for payment of principal and interest and redemption premium, if any, as may be required by the resolution of the school building authority, authorizing the issue or any trust agreement made in connection therewith, may be used for the redemption of any of the outstanding bonds payable from such fund which by their terms are then redeemable, or for the purchase of bonds at the market price, but at not exceeding the price, if any, at which such bonds shall in the same year be redeemable; and all bonds redeemed or purchased shall forthwith be canceled and shall not again be issued.
(b) From the school building debt service fund, the authority shall make periodic payments in an amount sufficient to meet the requirements of any issue of bonds sold under the provisions of this article on or after the first day of January, one thousand nine hundred ninety-four, and for which the authority has pledged revenues in such fund for the payment of such bonds, as may be specified in the resolution of the authority authorizing the issue thereof or in any trust agreement entered into in connection therewith. The payments so made shall be placed as specified in the resolution or trust agreement in a special sinking fund which is hereby pledged to and charged with the payment of the principal of the bonds of the issue and the interest thereon, and to the redemption or repurchase of the bonds, the sinking fund to be a fund for all bonds of the particular issue without distinction or priority of one over another, except as may be provided in the resolution authorizing the issuance of the bonds. The moneys in the special sinking fund, less the reserve for payment of principal and interest and redemption premium, if any, as may be required by the resolution of the school building authority authorizing the issue or any trust agreement made in connection therewith, may be used for redemption of any of the outstanding bonds payable from the fund which by their terms are then redeemable, or for the purchase of bonds at the market price, but not exceeding the price, if any, at which such bonds shall in the same year be redeemable; and all bonds redeemed or purchased shall forthwith be canceled and shall not again be issued.
§
18-9D-15.
Legislative intent; distribution of money.
(a) It is the intent of the Legislature to empower the school building authority to facilitate and provide state funds for the construction and maintenance of school facilities so as to meet the educational needs of the people of this state in an efficient and economical manner. The authority shall make funding determinations in accordance with the provisions of this article and shall assess existing school facilities and each facilities plan and maintenance plan in relation to the needs of the individual student, the general school population, the communities served by the facilities and facility needs statewide.
(b) An amount that is no more than three percent of the sum of moneys that are determined by the authority to be available for distribution during the then current fiscal year from: (1) Moneys paid into the school building capital improvements fund pursuant to section ten, article nine-a of this chapter; (2) the issuance of revenue bonds for which moneys in the school building capital improvements fund or the school building debt service fund are pledged as security; and (3) moneys paid into the fiscal responsibility fund pursuant to section six of this article and (4) any other moneys received by the authority, except moneys paid into the school maintenance fund pursuant to section six of this article, may be allocated and may be expended by the authority for projects that service the educational community statewide or, upon application by the state board, for educational programs that are under the jurisdiction of the state board. In addition, upon application by the state board or the administrative council of an area vocational educational center established pursuant to article two-b of this chapter, the authority may allocate and expend hereunder moneys for school maintenance projects proposed by the state board or such administrative council for school facilities under the direct supervision of the state board or such administrative council, respectively:
Provided,
That the authority may not expend any moneys for a school maintenance project proposed by the state board or the administrative council of an area vocational educational center unless the state board or such administrative council has submitted a ten-year school maintenance plan, to be updated annually, pursuant to section sixteen of this article:
Provided, however,
That the authority shall, before allocating any moneys to the state board or the administrative council of an area vocational educational center for a school maintenance project, consider all other funding sources available for such project.
Fifty percent of the remaining available funds shall be allocated and distributed to each county board on the basis of its net enrollment as defined in section two, article nine-a of this chapter:
be distributed to any county board whose region does not have an approved region-wide facilities plan or to any county board that is not prepared to commence expenditures of such funds during the fiscal year in which the moneys are distributed:
board and not distributed to that county board shall be deposited in an account to the credit of that county board, such principal amount to remain to the credit of and available to the county board for a period of three years. Any moneys which are unexpended after a three-year period shall be redistributed on the basis of net enrollment to those county boards then eligible for the receipt of net enrollment distributions in that fiscal year.
The remaining fifty percent of moneys available for distribution shall be allocated and expended on the basis of need and efficient use of resources, such basis to be determined by the authority in accordance with the provisions of section sixteen of this article.
No local matching funds shall be required under the provisions of this subsection, and any county board may use the state moneys provided herein in conjunction with local funds derived from bonding or other source. Any county board may dedicate any allocations of state moneys pursuant to this subsection to the payment of local bonds used for purposes encompassed in an approved facilities plan or for the payment of bonds that are issued by the authority for the benefit of that county that are in addition to the bond moneys distributed in accordance with this subsection.
Moneys made available pursuant to this subsection that shall be expended on projects that benefit more than one district shall be apportioned among the districts in accordance with the formula encompassed in that portion of the facilities plan that addresses the project designed to benefit more than one district.
(c) To encourage regional educational service agencies and county boards to proceed promptly with facilities planning and to prepare for the expenditure of any state moneys derived from the sources described in subsection (b) of this section, any county board failing to expend money within three years of the allocation thereto shall forfeit such allocation and thereafter shall be ineligible for further net enrollment or other allocations pursuant to said subsection until the county board is ready to expend funds in accordance with an approved facilities plan. Any amount so forfeited shall be added to the total funds available for allocation and distribution in the next ensuing fiscal year. An amount that is no more than two percent of the monies that are determined by the authority to be available for distribution during the current fiscal year from: (1) Moneys paid into the school building capital improvements fund pursuant to section ten, article nine-a of this chapter; (2) the issuance of revenue bonds for which moneys in the school building capital improvements fund are pledged as security; (3) moneys paid into the fiscal responsibility fund pursuant to section six of this article and (4) any other moneys received by the authority, except moneys deposited into the school maintenance fund, shall be set aside by the authority as an emergency fund to be distributed in accordance with the guidelines adopted by the school building authority.
(d) The remaining fifty percent of moneys determined by the authority to be available for distribution during the then current fiscal year from: (1) Moneys paid into the school building capital improvements fund pursuant to section ten, article nine-a of this chapter; (2) the issuance of revenue bonds for which moneys in the school building capital improvements fund are pledged as security; (3) moneys paid into the fiscal responsibility fund pursuant to section six of this article and (4) any other moneys received by the authority, except moneys deposited into the school maintenance fund, shall be allocated and expended on the basis of need and efficient use of resources, such basis to be determined by the authority in accordance with the provisions of section sixteen of this article:
Provided,
That if a county board of education proposes to finance a project that is approved pursuant to section sixteen of this article through a lease with an option to purchase pursuant to an investment contract, the authority may allocate no moneys to such county board in connection therewith:
Provided, however
That the authority may transfer moneys to the state board of education, which with the authority shall lend the amount so transferred to such county board to be used only for a one-time payment due at the beginning of the lease term, made for the purpose of reducing annual lease payments under the investment contract, subject to the following conditions:
(1) Such a loan shall be secured in the manner required by the state board and the authority, shall be repaid in a period and bear interest at a rate as determined by the state board and the authority and shall have such terms and conditions as are required by the state board and the authority, all of which shall be set forth in a loan agreement among the authority, the state board of education and such county board;
(2) Such loan agreement shall provide for the state board and the authority to defer the payment of principal and interest upon any loan made to such county board during the term of such investment contract among the state board, the authority, such county board and a lessor:
Provided,
That the failure of such county board to make a scheduled payment pursuant to the investment contract shall constitute an event of default under the loan agreement:
Provided, however,
That upon such a payment default by a county board, the principal of the loan, together with all unpaid interest accrued to the date of such default, shall at the option of the state board and the authority become due and payable immediately or subject to renegotiation among the state board, the authority and such county board:
Provided further,
That if the loan becomes due and payable immediately, the state board and the authority shall use all means available under the loan agreement and law to collect the outstanding principal balance of the loan, together with all unpaid interest accrued to the date of payment of such outstanding principal balance; and
(3) Such loan agreement shall provide for the state board and the authority to forgive all principal and interest of the loan upon the county board's exercise of the option to purchase pursuant to the investment contract and performance of the investment contract in its entirety.
To encourage county boards to proceed promptly with facilities planning and to prepare for the expenditure of any state moneys derived from the sources described in this subsection, any county board failing to expend money within three years of the allocation thereto shall forfeit such allocation and thereafter shall be ineligible for further allocations pursuant to this subsection until the county board is ready to expend funds in accordance with an approved facilities plan;
Provided, however,
That the authority may authorize an extension beyond the three year forfeiture period not to exceed an additional two years. Any amount so forfeited shall be added to the total funds available in the fiscal responsibility fund to the authority for allocation and distribution.
(e) The remaining moneys that are determined by the authority to be available for distribution during the then current fiscal year from moneys paid into the school maintenance fund pursuant to section six of this article shall be allocated and distributed to each county board on the basis of its net enrollment as defined in section two, article nine-a of this chapter:
Provided,
That such moneys may not be distributed to any county board that does not have an approved county-wide school maintenance plan or to any county board that is not prepared to commence expenditures of such funds during the fiscal year in which the moneys are distributed:
Provided, however,
That any moneys allocated to a county board and not distributed to that county board shall be deposited in an account to the credit of that county board, such principal amount to remain to the credit of and available to the county board for a period of two years. Any moneys which are unexpended after a two-year period shall be redistributed on the basis of net enrollment to those county boards then eligible for the receipt of net enrollment distributions from the school maintenance fund in that fiscal year.
(f) No local matching funds shall be required under the provisions of this section. However, it is not the intent of the Legislature to negate the responsibilities of the county boards of education to maintain school facilities, and therefore, to be eligible to receive an allocation of school maintenance funds from the authority, a county board must have expended in the previous fiscal year an amount of county moneys equal to or exceeding the lowest average amount of money included in such county board's maintenance budget over any three of the previous five years.
(g) Any county board may use moneys provided by the authority under this article in conjunction with local funds derived from bonding, special levy or other sources. Distribution to the a county boards, or to the state board or the administrative council of an area vocational educational center pursuant to subsection (b) of this section, may be in a lump sum or in accordance with a schedule of payments adopted by the authority pursuant to such guidelines as it shall adopt.
§
18-9D-16. Facilities and maintenance plans generally;
need-based eligibility.
(a) To facilitate the goals as stated in section fifteen of this article and to assure the prudent and resourceful expenditure of state funds for capital improvement projects as described in subsection (d), section fifteen of this article, each regional educational service agency created pursuant to section twenty-six, article two of this chapter county board of education shall submit a region county-wide facilities plan that addresses the facilities needs of each district within the region county pursuant to such guidelines as shall be adopted by the authority in accordance with this section and in accordance with each district's county's comprehensive school facilities plan approved by the state board of education. Any project receiving funding shall be in furtherance of such approved region county-wide facilities plan.
(b)(1) To assure efficiency and productivity in the project approval process, the region county-wide facilities plan shall be submitted only after a preliminary plan, a plan outline or a proposal for a plan has been submitted to the authority. Selected members of the authority, which selection shall include citizen members, shall then meet promptly with those persons designated by the regional educational service agency, including one person from each county within the region, county board to attend the facilities plan consultation. The purpose of the consultation is to assure understanding of the general goals of the school building authority and the specific goals encompassed in the following criteria and to discuss ways the plan may be structured to meet those goals.
(c)(2) The guidelines for the development of a facilities plan shall state the manner, timeline and process for submission of any plan to the authority; such project specifications as may be deemed appropriate by the authority; and those matters which are deemed by the authority to be important reflections of how the project will further the overall goals of the authority.
(b) To facilitate the goals as stated in section fifteen of this article and to assure the prudent and resourceful expenditure of state funds derived from the school maintenance fund, each county board of education shall submit to the authority a ten-year county-wide school maintenance plan that addresses the maintenance needs of each school within the county. If the state board of education or the administrative council of an area vocational educational center chooses to seek funding for a school maintenance project from the authority pursuant to subsection (b), section fifteen of this article, the state board or such administrative council shall submit a ten-year school maintenance plan that addresses the maintenance needs of the school or area vocational educational center for which funding is sought. Each ten-year school maintenance plan shall be prepared pursuant to such guidelines as shall be adopted by the authority in accordance with this section and shall be updated annually to reflect projects completed and new or continuing needs. Any school maintenance project funded by the authority shall be in furtherance of such approved school maintenance plan.
(1) To assure efficiency and productivity in the project approval process, each school maintenance plan shall be submitted only after a preliminary plan, a plan outline or a proposal for a plan has been submitted to the authority. Selected members of the authority, which selection shall include citizen members, shall then meet promptly with those persons designated by the county board, the state board or the administrative council of the area vocational educational center to attend the school maintenance plan consultation. The purpose of the consultation is to assure understanding of the general goals of the school building authority and the guidelines for the school maintenance plan.
(2) The guidelines for the development and annual updates of a ten-year school maintenance plan shall state the manner, timeline and process for submission of any plan, including a repair and replacement schedule for school facilities, to the authority; such maintenance specifications as may be deemed appropriate by the authority; and those matters which are deemed by the authority to be important reflections of how the school maintenance project or projects will further the overall goals of the authority.
(c) The guidelines regarding submission of the facilities plans and school maintenance plans shall include requirements for public hearings, comments or other means of providing broad-based input within a reasonable time period as the authority may deem appropriate. The submission of each facilities plan shall be accompanied by a synopsis of all comments received and a formal comment by each the county board included in the region, the state board or the administrative council of an area vocational educational center submitting such plan.
The guidelines regarding project specifications may include such matters as energy efficiency, preferred siting, construction materials, maintenance plan or any other matter related to how the capital improvement project is to proceed. If a county board of education proposes to finance a capital improvement project through a lease with an option to purchase pursuant to an investment contract as described in subsection (d), section fifteen of this article, the specifications for such project shall include the term of the lease, the amount of each lease payment, including the payment due upon exercise of the option to purchase, and the terms and conditions of the proposed investment contract.
(d) The guidelines pertaining to quality educational facilities shall require that a facilities plan address how the current facilities do not meet and how the proposed plan and any project thereunder does meet the following goals:
(1) Student health and safety;
(2) Economies of scale, including compatibility with similar schools that have achieved the most economical organization, facility utilization and pupil-teacher ratios;
(3) Reasonable travel time and practical means of addressing other demographic considerations;
(4) Multi-county and regional planning to achieve the most effective and efficient instructional delivery system;
(5) Curriculum improvement and diversification, including computerization and technology and advanced senior courses in science, mathematics, language arts and social studies;
(6) Innovations in education such as year-round schools and community-based programs; and
(7) Adequate space for projected student enrollments; and
(8) To the extent constitutionally permissible, each facilities plan shall address the history of efforts taken by the county board to propose or adopt local school bond issues or special levies.
If the project is to benefit more than one county in the region, the facilities plan shall state the manner in which the cost and funding of the project shall be apportioned among the counties.
(d)(e) The guidelines pertaining to quality educational facilities shall require that a school maintenance plan address how the proposed plan and any project thereunder meet the following goals:
(1) Student health and safety, including but not limited to critical health and safety needs; and
(2) Economies of scale, including regularly scheduled preventive maintenance:
Provided,
That each county board's school maintenance plan shall address regularly scheduled maintenance for all facilities within the county.
(d)(e) Each county board's facilities plan and school maintenance plan shall prioritize all the facilities projects or school maintenance projects, respectively, both within a the county. and among the counties, which A school maintenance plan submitted by the state board or the administrative council of an area vocational educational center shall prioritize all the school maintenance projects contained in such plan. Such priority list shall be one of the criteria to be considered by the authority in determining how available funds shall be expended. In prioritizing the projects, each regional educational service agency the county board, the state board or the administrative council submitting a plan shall make determinations in accordance with the objective criteria formulated by the school building authority.
(e) (f) Each facilities plan and school maintenance plan shall include the objective means to be utilized in evaluating implementation of the overall plan and each project included therein. Such evaluation shall measure each project's furtherance of each applicable goal stated in this section and any guidelines adopted hereunder, as well as the overall success of any project as it relates to the facilities plan or school maintenance plan of its region and the overall goals of the authority.
(f) (g) The authority may adopt guidelines for requiring that a regional educational service agency county board modify, update, supplement or otherwise submit changes or additions to an approved facilities plan or for requiring that a county board, the state board or the administrative council of an area vocational educational center modify, update, supplement or otherwise submit changes or additions to an approved school maintenance plan. and The authority shall provide reasonable notification and sufficient time for such change or addition.
§
18-9D-18.
Severability.
The provisions of every section of this article, whether enacted before or subsequent to the effective date of this section, shall be severable so that if any provision of any such section is held to be unconstitutional or void, the remaining provisions of such section shall remain valid, unless the court finds the valid provisions are so essentially and inseparably connected with, and so dependent upon, the unconstitutional or void provision that the court cannot presume the Legislature would have enacted the remaining valid provisions without the unconstitutional or void one, or unless the court finds the remaining valid provisions, standing alone, are incomplete and are incapable of being executed in accordance with the legislative intent. The provisions of this section shall be fully applicable to all future amendments or additions to this article, with like effect as if the provisions of this subdivision were set forth in extenso in every such amendment or addition and were reenacted as a part thereof.
§
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22
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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 created a special fund in the state treasury which shall be designated and known as the "state lottery fund." The fund shall consist 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 herein provided for the purposes stated herein 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 shall 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 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) shall be allocated as net profit. The director is authorized to expend the necessary percentage of the amount allocated as net profit, not to exceed six percent of the gross amount received, for the purposes of entering into contractual arrangements for the acquisition, financing, lease and lease-purchase, and other financing transactions, of lottery goods and services, including tickets, equipment, machinery, electronic computer systems and terminals, and supplies and maintenance therefor, for the first thirty-six months of operation, and may apportion the costs, expenses and expenditures related thereto among the commission, vendor or vendors and licensed lottery sales agents. In the event that the percentage allotted for operations and administration generates a surplus, the surplus will 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) Annually, the Legislature shall appropriate all of the amounts allocated as net profits above, in such proportions as it deems beneficial to the citizens of this state, to (1) the lottery education fund created in subsection (g) of this section, (2) the school building authority created in section six, article nine-d, chapter eighteen of this code, in accordance with subsection (h) of this section, (3) the lottery senior citizens fund created in subsection (h)(i) of this section, and (3)(4) the commerce division created in article one, chapter five-b of this code, in accordance with subsection (i)(j) of this section.
(g) There is hereby created a special 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 amounts 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 shall 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 such educational programs as it considers beneficial to the citizens of this state.
(h) The school building authority may use the amounts allocated to it pursuant to subsection (f) of this section for the payment of any or all costs incurred by one or more county boards of education for capital improvement projects, as defined in section two, article nine-d, chapter eighteen of this code, or by one or more county boards, the state board or the administrative council of an area vocational educational center for school maintenance projects, as defined in section two, article nine-d, chapter eighteen of this code, following the school building authority's allocation of funds to such capital improvement project or school maintenance project pursuant to section sixteen, article nine-d, chapter eighteen of this code.
(h)(i) There is hereby created a special 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 disbursed in the manner provided below and shall 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.
(i)(j) The commerce division may use the amounts allocated to it 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 such terms are defined in section thirteen-a, article one, chapter five-b of this code, pursuant to the authority granted to it under article one, chapter five-b 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 commerce division under article one, chapter five-b 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.
FINANCE COMMITTEE TITLE AMENDMENT
A BILL to repeal section thirty-a, article fifteen, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to repeal section ten, article nine-d, chapter eighteen of said code; to amend and reenact section thirty, article fifteen, of said chapter eleven; to amend and reenact section thirteen, article sixteen-a, chapter seventeen of said code; to amend and reenact sections two, three, four, six, eight, eleven, thirteen, fifteen and sixteen, article nine-d, chapter eighteen of said code; to further amend said article by adding thereto a new section, designated section eighteen; and to amend and reenact section eighteen, article twenty-two, chapter twenty-nine of said code, all relating to dedicating consumers sales tax proceeds and authorizing appropriations by the Legislature of lottery and parkways authority revenues for school facilities and maintenance projects; creating the fiscal responsibility fund and the school maintenance fund for the deposit of dedicated consumers sales tax and appropriated lottery and parkways authority revenues; and limiting the permissible expenditures from the school building capital improvements fund, the fiscal responsibility fund and the school maintenance fund.