ENGROSSED

Senate Bill No. 1008

(By Senators Lucht and Burdette, Mr. President)

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[Introduced March 14, 1994; referred to the

Committee on Finance.]

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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 amend and reenact section three, article one, chapter five-g of said code; to amend and reenact section thirty, article fifteen, chapter eleven of said code; to amend and reenact sections two, six, eight and fifteen, article nine-d, chapter eighteen of said code; to amend and reenact section eighteen, article twenty-two, chapter twenty-nine of said code; and to amend and reenact section ten, article twenty, chapter thirty-one of said code, all relating to dedicating lottery proceeds for financing revenue bonds to be issued by the school building authority and the regional jail and correctional facility authority; setting requirements for contracts for architectural and engineering services on projects funded by school building authority moneys; transferring dedicated consumers sales tax revenues to the general fund of the
state; defining terms relating to the school building authority; creating special funds in the state treasury for the school building authority; permitting the school building authority to pledge funds as security for revenue bonds; providing for issuance and tax-exempt status of such revenue bonds; specifying use of bond proceeds; providing for distribution of school building authority moneys; dedicating state lottery proceeds for specified purposes; providing for annual certification of amounts needed to pay principal, interest and coverage ratios for each fiscal year on bonds to be issued by the school building authority and the regional jail and correctional facility authority; limiting dollar amounts of lottery proceeds that may be used to finance such bonds; specifying uses of moneys in the regional jail and correctional facility development fund; and providing for payment of certain lottery proceeds into said fund for use in bond financing.
Be it enacted by the Legislature of West Virginia:
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article fifteen, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that section three, article one, chapter five-g of said code be amended and reenacted; that section thirty, article fifteen, chapter eleven of said code be amended and reenacted; that sections two, six, eight and fifteen, article nine-d, chapter eighteen of said code be amended and reenacted; that section eighteen, article twenty-two, chapter twenty-nine of said code be amended and reenacted; and that section ten, articletwenty, chapter thirty-one of said code be amended and reenacted, all to read as follows:
CHAPTER 5G. PROCUREMENT OF ARCHITECT-ENGINEER

SERVICES BY STATE AND ITS SUBDIVISIONS.

ARTICLE 1. PROCUREMENT OF ARCHITECT-ENGINEER SERVICES.

§5G-1-3. Contracts for architectural and engineering services; selection process where total project costs are estimated to cost two hundred fifty thousand dollars or more.

In the procurement of architectural and engineering services for projects estimated to cost two hundred fifty thousand dollars or more, the director of purchasing shall encourage such firms engaged in the lawful practice of the profession to submit an expression of interest, which shall include a statement of qualifications and performance data, and may include anticipated concepts and proposed methods of approach to the project. All such jobs shall be announced by public notice published as a Class II legal advertisement in compliance with the provisions of article three, chapter fifty-nine of this code. A committee of three to five representatives of the agency initiating the request shall evaluate the statements of qualifications and performance data and other material submitted by interested firms and select three firms which, in their opinion, are best qualified to perform the desired service: Provided, That on projects funded wholly or in part by school building authority moneys, two of said three firms shall have offices within this state. Interviews with each firm selected shall be conducted and the committee shall conduct discussions regarding anticipatedconcepts and proposed methods of approach to the assignment. The committee shall then rank, in order of preference, no less than three professional firms deemed to be the most highly qualified to provide the services required, and shall commence scope of service and price negotiations with the highest qualified professional firm for architectural or engineering services or both. Should the agency be unable to negotiate a satisfactory contract with the professional firm considered to be the most qualified, at a fee determined to be fair and reasonable, price negotiations with the firm of second choice shall commence. Failing accord with the second most qualified professional firm, the committee shall undertake price negotiations with the third most qualified professional firm. Should the agency be unable to negotiate a satisfactory contract with any of the selected professional firms, it shall select additional professional firms in order of their competence and qualifications and it shall continue negotiations in accordance with this section until an agreement is reached: Provided, however, That county boards of education may either elect to start the selection process over in the original order of preference or it may select additional professional firms in order of their competence and qualifications and it shall continue negotiations in accordance with this section until an agreement is reached.
CHAPTER 11. TAXATION.

ARTICLE 15. CONSUMERS SALES TAX.
§11-15-30. Proceeds of tax; dedication of certain revenues.
The proceeds from the tax imposed by this article shall bedeposited in the general revenue fund of the state beginning the first day of July, one thousand nine hundred ninety-four, except as otherwise expressly provided in this article. Prior to the said first day of July, the proceeds of this tax shall, except as otherwise expressly provided in this article, be deposited as provided in chapter three, acts of the Legislature, second extraordinary session, one thousand nine hundred ninety-three, and, for such purpose, such prior law is fully preserved. On the said first day of July, the balance in "WVFIMS" account number fund 3962, fiscal year one thousand nine hundred ninety-four, organization 0402, and in "WVFIMS" account number fund 6676, fiscal year one thousand nine hundred ninety-four, organization 0615, shall be transferred to the general revenue fund.
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) "Cost of project" means the cost of construction, renovation, repair and safety upgrading of facilities, buildingsand 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;
(4) "Facilities plan" means the regional plan for school facilities required prior to the distribution of state funds to any county board pursuant to section fifteen of this article;
(5) "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, 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, fuel, supplies and other items which are customarily deemed to result in a current operating charge;
(6) "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; and
(7) "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 eighteen, article twenty-two, chaptertwenty-nine 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.
§18-9D-6. School building capital improvements fund in state treasury; school building debt service fund in state treasury; collections to be paid into special funds; authority to pledge such collections as security for 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, 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 connectiontherewith. 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 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 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 specialfund named the school building debt service fund into which shall be deposited on and after the first day of April, one thousand nine hundred ninety-four, the amounts specified in section eighteen, article twenty-two, chapter twenty-nine of this code. 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: Provided, That moneys so deposited may not be pledged to the repayment of any revenue bonds issued prior to the first day of January, one thousand nine hundred ninety-four, 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 May of each year, commencing the first day of May, one thousand nine hundred ninety-four, the authority shall certify to the state lottery director 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: Provided, however, That before the first day of May, one thousand nine hundred ninety-four, the authority shall also certify to the lottery director 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.
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) The Legislature hereby finds and declares that the supreme court of appeals of West Virginia has held that the revenue bonds authorized under the school building authority act, as enacted in this article prior to the twentieth day of July, one thousand nine hundred ninety-three, constituted an indebtedness of the state in violation of section four, article ten of the constitution of West Virginia. The Legislature further finds and declares that the financial capacity of a county to construct facilities depends on the county's bonding capacity (local property wealth) and on voter willingness to passbond issues 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. The Legislature hereby further finds and declares that the continued construction and improvement of school building facilities and the dedication of lottery proceeds pursuant to section eighteen, article twenty-two, chapter twenty-nine of this code to finance such construction and improvement are for the use and benefit of the state, its counties, its municipalities and its other political subdivisions, and such construction and improvement serves the vital public purpose of 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 eighteen, article twenty-two, chapter twenty-nine 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 of school building facilities. The Legislature hereby further finds and declares that it intends, through the reenactment of this section and section eighteen, article twenty-two, chapter twenty-nine of this code, to comply with the provisions of section four, article ten; section six, article ten; and section one, article twelve of the constitution of West Virginia.
§18-9D-8. Issuance of revenue bonds; use of proceeds; bonds exempt from taxation.

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: Provided, That bond issues from which 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 paidinto the school building authority capital improvements fund as may be provided in the resolution authorizing the issuance of the bonds or in any trust agreement made in connection therewith: Provided, however, That revenue bonds issued on or after the first day of January, one thousand nine hundred ninety-four which are secured by lottery proceeds shall mature at such time or times not exceeding ten years from their respective dates. 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 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 ofsuch pledge, and such pledge shall be a prior and superior charge over any other use of such revenues so pledged.
The proceeds of such bonds 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 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 shall not be reduced as long as any ofsuch 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 bonds 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-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 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) The increase in local share 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 lottery proceeds are pledged as security; and (3) any other moneys received by the authority 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: Provided, That such moneys may not 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: 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 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 netenrollment distributions in that fiscal year: Provided further, That the school building authority may grant an extension of up to two years for use of net enrollment moneys, upon the petition of a county board.
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 may 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 thesources 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, unless an extension of up to two years is granted by the school building authority. Such county board shall thereafter be ineligible for further allocations pursuant to subsection (b), 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.
(d) 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.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE. 22. STATE LOTTERY ACT.

§29-22-18. State lottery fund; appropriations and deposits; not part of general revenue; no transfer of state funds after initial appropriation; use and repayment of initial appropriation; allocation of fund for prizes, net profit and expenses; surplus; state lottery education fund; state lottery senior citizens fund; allocation and appropriation of net profits.

(a) There is hereby continued a special 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. Allrevenues 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 may be made to the commission or lottery fund after the initial appropriation.
(c) A minimum annual average of forty-five percent of the gross amount received from each lottery shall be allocated and disbursed as prizes.
(d) Not more than fifteen percent of the gross amount received from each lottery may be allocated to and may be disbursed as necessary for fund operation and administration expenses.
(e) The excess of the aggregate of the gross amount received from all lotteries over the sum of the amounts allocated by subsections (c) and (d) of this section shall be allocated as net profit. 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-sixmonths 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, by electronic funds transfer or by other means, 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 debt service fund created in section six, article nine-d, chapter eighteen of this code, in accordance with subsection (h) of this section and the dollar amount limitations set forth therein regarding the use of lottery proceeds; (3) the lottery senior citizens fund created in subsection (i) of this section; (4) the division of tourism and parks created in article one, chapter five-b of this code, in accordance with subsection (j) of this section; and (5) the regional jail and correctional facility development fund created in section ten, article twenty, chapter thirty-one of this code, in accordance with subsection (k) of this section and the dollar amount limitations set forththerein regarding the use of lottery proceeds.
(g) There is hereby continued 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 fund 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) Beginning on or before the twenty-eighth day of July, one thousand nine hundred ninety-four, and continuing on or before the twenty-eighth day of each succeeding month thereafter, there shall be allocated monthly by the lottery director as a first priority from the net profits of the lottery for the preceding month, on a co-equal basis with the allocation of said net profits to the regional jail and correctional facility development fund as provided in subsection (k) of this section, an amount equal to one tenth of the projected annual principal,interest and coverage ratio requirements on any and all revenue bonds and refunding bonds issued, or to be issued, on or after the first day of 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, interest and coverage ratio requirements having been certified to the lottery director in accordance with the provisions of said section: Provided, That in no event shall the total allocation of said net profits to be paid into the school building debt service fund, as provided in this section, in any fiscal year exceed the lesser of the principal, interest and coverage ratio requirements certified to the lottery director as aforesaid, or eighteen million dollars: Provided, however, That any amount, not to exceed nine million dollars in any fiscal year, certified to the lottery director pursuant to section six, article nine-d, chapter eighteen of this code, which amount constitutes any coverage ratio requirement certified in accordance with said section, may be reallocated by the lottery director upon receipt by the lottery director of a certification from the executive director of the school building authority that said amount for any coverage ratio requirement may be released because the principal and interest requirements certified for that fiscal year pursuant to said section have been fully satisfied. The amounts allocated by this subsection shall be deposited on a monthly basis into the school building debt service fund created pursuant to section six, article nine-d,chapter eighteen of this code.
(i) There is hereby continued 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.
(j) The division of tourism and parks 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 said article; (2) the payment, funding or refunding of the principal of, interest on, orredemption premiums on any bonds, security interests or notes issued by the parks and recreation section of the division of tourism and parks 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.
(k) Beginning on or before the twenty-eighth day of July, one thousand nine hundred ninety-four, and continuing on or after the twenty-eighth day of each succeeding month thereafter, there shall be allocated monthly by the lottery director as a first priority from the net profits of the lottery for the preceding month, on a co-equal basis with the allocation of said net profits to the school building debt service fund as provided in subsection (h) of this section, an amount equal to one tenth of the projected annual principal, interest and coverage ratio requirements on any and all revenue bonds and refunding bonds issued, or to be issued, on or after the first day of January, one thousand nine hundred ninety-four, for which bond moneys in the regional jail and correctional facility development fund have been pledged, or will be pledged, for repayment pursuant to section ten, article twenty, chapter thirty-one of this code, such principal, interest and coverage ratio requirements having been certified to the lottery director in accordance with the provisions of said section: Provided, That in no event shall the total allocation of said net profits to be paid into the regional jail and correctional facility development fund, as provided in this section, in any fiscal year exceed the lesser of theprincipal, interest and coverage ratio requirements certified to the lottery director as aforesaid, or seven million five hundred thousand dollars: Provided, however, That any amount, not to exceed three million seven hundred fifty thousand dollars in any fiscal year, certified to the lottery director pursuant to section ten, article twenty, chapter thirty-one of this code, which amount constitutes any coverage requirement certified in accordance with said section, may be reallocated by the lottery director upon receipt by the lottery director of a certification from the regional jail and correctional facility authority that said amount for any coverage ratio requirement may be released because the principal and interest requirements certified for that fiscal year pursuant to said section have been fully satisfied. The amounts allocated pursuant to this subsection shall be deposited on a monthly basis into the regional jail and correctional facility development fund created pursuant to section ten, article twenty, chapter thirty-one of this code.
CHAPTER 31. CORPORATIONS.

ARTICLE 20. WEST VIRGINIA REGIONAL JAIL AND CORRECTIONAL FACILITY AUTHORITY.

§31-20-10. Regional jail and correctional facility development fund.

(a) The regional jail and correctional facility development fund is hereby continued and shall be a special account in the state treasury. The fund shall operate as a revolving fund whereby all appropriations and payments thereto may be applied and reapplied by the authority for the purposes of this article. Separate accounts may be established within the special account for the purpose of identification of various revenue resources and payment of specific obligations.
(b) Revenues deposited into the fund shall be used to make payments of interest and shall be pledged as security for bonds, security interests or notes issued by the authority pursuant to this article.
(c) Whenever the authority determines that the balance in the fund is in excess of the immediate requirements of this article, it may request that such excess be invested until needed. In such case such excess shall be invested in a manner consistent with the investment of the temporary state funds. Interest earned on any money invested pursuant to this section shall be credited to the fund.
(d) If the authority determines that funds held in the fund are in excess of the amount needed to carry out the purposes of this article, it shall take such action as is necessary to release such excess and transfer it to the general fund of the state treasury.
(e) The fund shall consist of the following:
(1) Amounts raised by the authority by the sale of bonds or other borrowing authorized by this article;
(2) Moneys collected and deposited in the state treasury which are specifically designated by acts of the Legislature for inclusion into the fund;
(3) Contributions, grants and gifts from any source, both public and private, which may be used by the authority for anyproject or projects;
(4) All sums paid by the counties pursuant to subsection (h) of this section; and
(5) All interest earned on investments made by the state from moneys deposited in this fund.
(f) The amounts deposited in the fund shall be accounted for and expended in the following manner:
(1) Amounts raised by the sale of bonds or other borrowing authorized by this article shall be deposited in a separate account within the fund and expended for the purpose of construction and renovation of correctional facilities and regional jails for which need has been determined by the authority;
(2) Amounts deposited from all other sources shall be pledged first to the debt service on any bonded indebtedness or other obligation incurred by borrowing of the authority;
(3) After any requirements of debt service have been satisfied, the authority shall requisition from the fund such amounts as are necessary to provide for payment of the administrative expenses of this article;
(4) The authority shall requisition from the fund after any requirements of debt service have been satisfied such amounts as are necessary for the maintenance and operation of the correctional facilities or regional jails or both that are constructed pursuant to the plan required by this article and shall expend such amounts for such purpose. The fund shall make an accounting of all amounts received from each county by virtueof any filing fees, court costs or fines required by law to be deposited in the fund and amounts from the jail improvement funds of the various counties. After the expenses of administration have been deducted, the amounts expended in the respective regions from such sources shall be in proportion to the percentage the amount contributed to the fund by the counties in each region bears to the total amount received by the fund from such sources;
(5) Notwithstanding any other provisions of this article, sums paid into the fund by each county pursuant to subsection (h) of this section for each inmate shall be placed in a separate account and shall be requisitioned from the fund to pay for the costs specified in that subsection incurred at the regional jail facility at which each such inmate was incarcerated; and
(6) Any amounts deposited in the fund from other sources permitted by this article shall be expended in the respective regions based on particular needs to be determined by the authority.
(g) After a regional jail facility becomes available pursuant to this article for the incarceration of inmates, each county within the region shall incarcerate all persons whom the county would have incarcerated in any jail prior to the availability of the regional jail facility in the regional jail facility except those whose incarceration in a local jail facility used as a local holding facility is specified as appropriate under the standards and procedures developed pursuant to section nine of this article and who the sheriff or thecircuit court elects to incarcerate therein.
(h) When inmates are placed in a regional jail facility pursuant to subsection (g) of this section, the county shall pay into the regional jail and correctional facility development fund a cost per day for each inmate so incarcerated to be determined by the regional jail and correctional facility authority according to criteria and by procedures established by regulations pursuant to article three, chapter twenty-nine-a of this code to cover the costs of operating the regional jail facilities of this state to maintain each such inmate which costs shall not include the cost of construction, acquisition or renovation of said regional jail facilities: Provided, That each regional jail facility operating in this state shall keep a record of the date and time of the incarceration of an inmate, and a county may not be charged for a second day of incarceration for an individual inmate until that inmate has remained incarcerated for more than twenty-four hours. Thereafter, in cases of continuous incarceration, subsequent per diem charges shall be made upon a county only as subsequent intervals of twenty-four hours pass from the original time of incarceration.
(i) On and after the first day of April, one thousand nine hundred ninety-four, the amounts as and when specified in section eighteen, article twenty-two, chapter twenty-nine of this code shall be paid into the regional jail and correctional facility development fund. All of the specified amounts deposited in this fund shall be pledged to the repayment of the principal and interest on any revenue bonds or refunding bonds authorized byarticle twenty, chapter thirty-one of this code. On or prior to the first day of May of each year, commencing the first day of May, one thousand nine hundred ninety-four, the authority shall certify to the state lottery director the principal and interest requirements for the following fiscal year on any revenue bonds or refunding bonds issued or to be issued on or after the first day of January, one thousand nine hundred ninety-four, and for which moneys contained within the regional jail and correctional facility development fund have been, or will be, pledged for repayment pursuant to this section: Provided, That before the first day of May, one thousand nine hundred ninety-four, the authority shall also certify to the state lottery director 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 by the authority on or after the first day of January, one thousand nine hundred ninety-four.
(j) The Legislature hereby finds and declares that the supreme court of appeals of West Virginia has held that the revenue bonds authorized under the school building authority act, as enacted in article nine-d, chapter eighteen of this code prior to the twentieth day of July, one thousand nine hundred ninety- three, constituted an indebtedness of the state in violation of section four, article ten of the constitution of West Virginia. The Legislature hereby further finds and declares that the continued construction and improvement of jail and correctional facilities and the dedication of lottery proceeds pursuant to section eighteen, article twenty-two, chapter twenty-nine of thiscode to finance such construction and improvement are for the use and benefit of the state, its counties, its municipalities and its other political subdivisions, and that such construction and improvement serve the vital public purpose of ensuring the physical safety of each citizen and the public at large. The Legislature hereby further finds and declares that it intends, through the reenactment of this section and section eighteen, article twenty-two, chapter twenty-nine 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 issue subsequent to the first day of January, one thousand nine hundred ninety-four, the proceeds of which are to be utilized for the construction and improvement of jails and correctional facilities. The Legislature hereby further finds and declares that it intends, through the reenactment of this section and section eighteen, article twenty-two, chapter twenty-nine of this code, to comply with the provisions of sections four and six, article ten; and section one, article twelve of the constitution of West Virginia.