H. B. 2841
(By Mr. Speaker, Mr. Kiss,
and Delegates Martin, Michael, Mezzatesta and Jenkins)
[Introduced February 19, 1999; Referred to
the Committee Finance.]
A BILL to amend and reenact section eighteen, article twenty-two,
chapter twenty-nine of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; and to amend and reenact
sections fourteen-d and thirty-three, article three, chapter
thirty-three of said code, all
relating to the surcharge on
fire and casualty insurance policies; providing that the
proceeds of the surcharge go to volunteer fire departments and
paid fire departments; creating the catastrophic illness fund;
specifying expenditures therefrom upon appropriation by the
legislature; funding the catastrophic illness fund; creating
the catastrophic illness commission; providing for members and
expenses of members; limiting expenses; providing that the
legislature annually appropriate eight million dollars of the
lottery proceeds remaining after all specified
bond
obligations have been met; establishing the "Fire Fighters Training Fund"; specifying expenditures from the fund; and
specifying certain required application information.
Be it enacted by the Legislature of West Virginia:
That
section eighteen, article twenty-two, chapter twenty-nine
of the code of West Virginia, one thousand nine hundred thirty-one,
as amended
, be amended and reenacted; and that sections fourteen-d
and thirty-three, section three, chapter thirty-three of said code
be amended and reenacted, all to read as follows:
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 revenue 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 provided in this section for the purposes stated in this section
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 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) of this section shall be allocated as net
profit. In the event that the percentage allotted for operations
and administration generates a surplus, the surplus shall 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) After first satisfying the requirements for funds
dedicated to the school building debt service fund in subsection
(h) of this section to retire the ten-year bonds authorized to be
issued pursuant to section eight, article nine-d, chapter eighteen
of this code, and then satisfying the requirements for funds
dedicated to the education, arts, sciences and tourism debt service
fund in subsection (I) of this section to retire the bonds
authorized to be issued pursuant to section eleven-a, article six,
chapter five of this code, the Legislature shall annually
appropriate eight million dollars to the teachers retirement
reserve fund, after which the Legislature shall annually
appropriate all of the remaining amounts allocated as net profits
in subsection (e) of this section, in such proportions as it
considers beneficial to the citizens of this state, to: (1) The
lottery education fund created in subsection (g) of this section;
(2) the school construction fund created in section six, article
nine-d, chapter eighteen of this code; (3) the lottery senior
citizens fund created in subsection (j) of this section; and (4)
the division of natural resources created in section four, article
five, chapter twenty of this code and the West Virginia development
office as created in section one, article two, chapter five-b of
this code, in accordance with subsection (k) of this section. No
transfer to any account other than the school building debt service
account and the education, arts, sciences and tourism debt service fund may be made in any period of time in which a default exists in
respect to debt service on bonds issued by the school building
authority and the state building commission which are secured by
lottery proceeds. No additional transfer shall be made to any
account other than the school building debt service account and the
education, arts, sciences and tourism debt service fund when net
profits for the preceding twelve months are not at least equal to
one hundred fifty percent of debt service on bonds issued by the
school building authority and the state building commission which
are secured by net profits.
(g) There is hereby continued a special revenue 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 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) On or before the twenty-eighth day of each month through
the twentieth day of June, two thousand five, the lottery director
shall allocate to the school building debt service fund created
pursuant to the provisions of section six, article nine-d, chapter
eighteen of this code, as a first priority from the net profits of
the lottery for the preceding month, 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 April, one
thousand nine hundred ninety-four, as certified to the lottery
director in accordance with the provisions of section six, article
nine-d, chapter eighteen of this code. In no event shall the
monthly amount allocated exceed one million eight hundred thousand
dollars, nor shall the total allocation of the 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
and interest requirements certified to the lottery director or
eighteen million dollars. In the event there are insufficient
funds available in any month to transfer the amount required to be
transferred pursuant to this subsection to the school debt service
fund, the deficiency shall be added to the amount transferred in
the next succeeding month in which revenues are available to transfer the deficiency. A lien on the proceeds of the state
lottery fund up to a maximum amount equal to the projected annual
principal, interest and coverage ratio requirements, not to exceed
twenty-seven million dollars annually, may be granted by the school
building authority in favor of the bonds it issues which are
secured by the net lottery profits.
(i) Beginning on or before the twenty-eighth day of July, one
thousand nine hundred ninety-six, and continuing on or before the
twenty-eighth day of each succeeding month thereafter through the
twenty-eighth day of June, two thousand twenty-one, the lottery
director shall allocate to the education, arts, sciences and
tourism debt service fund created pursuant to the provisions of
section eleven-a, article six, chapter five of this code, as a
second priority from the net profits of the lottery for the
preceding month, 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 April, one thousand nine hundred
ninety-six, as certified to the lottery director in accordance with
the provisions of that section. In no event shall the monthly
amount allocated exceed one million dollars nor shall the total
allocation paid into the education, arts, sciences and tourism debt
service fund, as provided in this section, in any fiscal year
exceed the lesser of the principal and interest requirements certified to the lottery director or ten million dollars. In the
event there are insufficient funds available in any month to
transfer the amount required pursuant to this subsection to the
education, arts, sciences and tourism debt service fund, the
deficiency shall be added to the amount transferred in the next
succeeding month in which revenues are available to transfer the
deficiency. A second-in-priority lien on the proceeds of the state
lottery fund up to a maximum amount equal to the projected annual
principal, interest and coverage ratio requirements, not to exceed
fifteen million dollars annually, may be granted by the state
building commission in favor of the bonds it issues which are
secured by the net lottery profits.
(j) There is hereby continued a special revenue 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 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.
(k) The division of natural resources and the West Virginia
development office, as appropriated by the Legislature, 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 these terms are defined in section four,
article five, chapter twenty of this code, pursuant to the
authority granted to it under article five, chapter twenty 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 division
of natural resources under article five, chapter twenty 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.
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-14d. Additional fire and casualty insurance premium tax;
allocation of proceeds; effective date.
(a) For the purpose of providing additional revenue for municipal policemen's and firemen's pension and relief funds and
the teachers retirement system reserve fund and for volunteer and
part volunteer fire companies and departments, there is hereby
levied and imposed an additional premium tax equal to one percent
of gross direct premiums collected, less premiums returned to
policyholders because of cancellation of policies, for fire
insurance and casualty insurance policies. For purposes of this
section, casualty insurance does not include insurance on the life
of a debtor pursuant to or in connection with a specific loan or
other credit transaction or insurance on a debtor to provide
indemnity for payments becoming due on a specific loan or other
credit transaction while the debtor is disabled as defined in the
policy. Except as otherwise provided in this section, all
provisions of this article relating to the levy, imposition and
collection of the regular premium tax are applicable to the levy,
imposition and collection of the additional tax set forth in this
section.
All moneys collected from this additional tax shall be
received by the commissioner and paid by him into a special account
in the state treasury, designated the municipal pensions and
protection fund. The net proceeds of this tax after appropriation
thereof by the Legislature shall be distributed in accordance with
the provisions of this section.
(b) (1) Before the first day of August of each calendar year, the treasurer of each municipality in which a municipal policemen's
or firemen's pension and relief fund has been established shall
report to the state treasurer the average monthly number of members
who worked at least one hundred hours per month and the average
monthly number of retired members of municipal policemen's or
firemen's pension systems during the preceding fiscal year.
(2) Before the first day of September of each calendar year,
the state treasurer shall allocate and authorize for distribution
the revenues in the municipal pensions and protection fund which
were collected during the preceding calendar year for the purposes
set forth in this section. Sixty-five Seventy-five percent of the
revenues shall be allocated to municipal policemen's and firemen's
pension and relief funds; and twenty-five percent of the revenues
shall be allocated to volunteer and part volunteer fire companies
and departments; and ten percent of such allocated revenues shall
be allocated to the teachers retirement system reserve fund created
by section eighteen, article seven-a, chapter eighteen of this
code: Provided, That in any year the actuarial report required by
section twenty, article twenty-two, chapter eight of this code
indicates no actuarial deficiency in the municipal policemen's or
firemen's pension and relief fund, no revenues may be allocated
from the municipal pensions and protection fund to that fund. The
revenues from the municipal pensions and protection fund shall then
be allocated to all other pension funds which have an actuarial deficiency.: Provided however, That for the fiscal year ending the
thirtieth day of June, two thousand, and for each of the three
successive fiscal years, ten percent of the revenues from the
municipal pensions and protection fund shall be allocated only to
those pension funds where the municipalities are actuarially
required to contribute one hundred ten percent or more of the prior
year's contribution to the pension fund.
(3) The moneys, and the interest earned thereon, in the
municipal pensions and protection fund allocated to volunteer and
part volunteer fire companies and departments shall be allocated
and distributed quarterly to the volunteer fire companies and
departments. Before each distribution date, the state fire marshal
shall report to the state treasurer the names and addresses of all
volunteer and part volunteer fire companies and departments within
the state which meet the eligibility requirements established in
section eight-a, article fifteen, chapter eight of this code.
(c) (1) Each municipal pension and relief fund shall have
allocated and authorized for distribution a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief funds based upon the corresponding municipality's
average monthly number of members who worked at least one hundred
hours per month during the preceding fiscal year. On and after the
first day of July, one thousand nine hundred ninety-seven, from the
growth in any moneys collected pursuant to the tax imposed by this section there shall be allocated and authorized for distribution to
each municipal pension and relief fund, a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief funds based upon the corresponding municipalities
average number of members who worked at least one hundred hours per
month and average monthly number of retired members. For the
purposes of this subsection, the growth in moneys collected from
the tax collected pursuant to this section shall be determined by
subtracting the amount of the tax collected during the fiscal year
ending the thirtieth day of June, one thousand nine hundred ninety- six, from the tax collected during the fiscal year for which the
allocation is being made. All moneys received by municipal pension
and relief funds under this section may be expended only for those
purposes described in sections sixteen through twenty-eight,
inclusive, article twenty-two, chapter eight of this code.
(2) Each volunteer fire company or department shall receive an
equal share of the revenues allocated for volunteer and part
volunteer fire companies and departments.
(3) In addition to the share allocated and distributed in
accordance with subdivision (1) of this subsection, each municipal
fire department composed of full-time paid members and volunteers
and part volunteer fire companies and departments shall receive a
share equal to the share distributed to volunteer fire companies
under subdivision (2) of this subsection reduced by an amount equal to such share multiplied by the ratio of the number of full-time
paid fire department members who are also members of a municipal
firemen's pension system to the total number of members of such
fire department.
(d) The allocation and distribution of revenues provided for
in this section are subject to the provisions of section twenty,
article twenty-two, and sections eight-a and eight-b, article
fifteen, chapter eight of this code.
§33-3-33. Surcharge on fire and casualty insurance policies to
benefit volunteer and part volunteer fire
departments; special fund created; allocation of proceeds; effective date.
(a) For the purpose of providing additional revenue for
volunteer and part volunteer fire and paid fire departments,
certain retired teachers and the teachers retirement reserve fund,
and for the catastrophic injury fund there is hereby authorized and
imposed continued on and after the first day of July, one thousand
nine hundred ninety-two one thousand nine hundred ninety-nine, on
the policyholder of any fire and casualty insurance policy, a
policy surcharge equal to one percent of gross direct premium paid
by the policyholder for each such policy. For purposes of this
section, casualty insurance shall not include insurance on the life
of a debtor pursuant to or in connection with a specific loan or
other credit transaction or insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other
credit transaction while the debtor is disabled as defined in the
policy. The policy surcharge shall not be subject to premium
taxes, agent commissions or any other assessment against premiums.
The policy surcharge shall be collected and remitted by the
insurer to the commissioner on forms prescribed by the commissioner
on a quarterly basis and are due on the twenty-fifth day of the
month succeeding the end of the quarter in which they are collected
except for the fourth quarter for which the surcharge shall be due
and payable on or before the first day of March of the succeeding
year. All forms required by the commissioner shall be submitted
under the oath of the president and secretary of the insurer.
Any insurer failing or refusing to collect and remit to the
commissioner any policy surcharge and whose surcharge payments are
not postmarked by the due dates for quarterly filing is liable for
a civil penalty of up to one hundred dollars for each day of
delinquency, to be assessed by the commissioner. The commissioner
may suspend the insurer until all surcharge payments and penalties,
should any penalty be imposed, are remitted in full to the
commissioner.
One half of all All money from the policy surcharge shall be
collected by the commissioner who shall disburse the money received
from the surcharge into a special account in the state treasury,
designated the "fire protection fund". The net proceeds of this portion of the tax after appropriation by the Legislature shall be
distributed in accordance with the provisions of subsection (c) of
this section. The remaining fifty percent of the moneys collected
shall be transferred to the teachers retirement system to be
disbursed according to the provisions of sections twenty-six-j,
twenty-six-k and twenty-six-l, article seven-a, chapter eighteen of
this code. Any balance remaining after the disbursements
authorized by this subdivision have been paid shall be paid by the
teachers retirement system into the teachers retirement system
reserve fund. The first one million dollars of the proceeds from
this tax received after the thirtieth day of June, one thousand
nine hundred ninety-nine, shall be placed into a special account
in the state treasury, designated the "James 'Tiger' Morton
Catastrophic Illness Fund". Thereafter, up to one million dollars
shall be placed annually in the "James 'Tiger' Morton Catastrophic
Illness Fund"
: Provided, That following the thirtieth day of June,
two thousand only the amount required to bring the balance in said
fund up to one million dollars may be deposited in said fund.
Moneys in this fund shall be distributed in accordance with the
provisions of subsection (d) of this section.
Two million dollars
of the proceeds from this tax received after the thirtieth day of
June, one thousand nine hundred ninety-nine, shall be placed into
a special account in the state treasury, designated the "The Fire
Fighters' Training Fund". Thereafter, up to two million dollars shall be placed annually in the "The Fire Fighters' Training
Fund"
: Provided however, That following the thirtieth day of June,
two thousand only the amount required to bring the balance in said
fund up to two million dollars may be deposited in said fund.
Moneys in this fund shall be distributed in accordance with the
provisions of subsection (f) of this section.
(b) The moneys, and the interest earned thereon, in the fire
protection fund shall be allocated among and distributed quarterly
to all volunteer and part volunteer fire and to all paid fire
departments by the state treasurer. Before each distribution date,
the state fire marshal shall report to the state treasurer the
names and addresses of all volunteer and part volunteer fire and to
all paid fire
companies and departments within the state which meet
the eligibility requirements established in section eight-a,
article fifteen, chapter eight of this code.
The payments hereinabove provided shall be paid on the first
day of the months of January, April, July and October of one
thousand nine hundred ninety-eight and each year thereafter.
(c) Each volunteer fire company or department, part volunteer
fire company or department and paid fire department shall receive
on an equal share basis the revenues allocated for volunteer and
part volunteer fire companies and departments under subdivision
(1), subsection (a) of this section. All moneys received by those
paid fire departments having a pension pursuant to the provisions of article twenty-two of chapter eight of this code shall be placed
directly in the applicable pension fund.
(d) The allocation, distribution and use of revenues provided
in the fire protection fund are subject to the provisions of
sections eight-a and eight-b, article fifteen, chapter eight of
this code and are subject to appropriation by the legislature..
(e) The allocation, distribution and use of revenues provided
in the
"James 'Tiger' Morton Catastrophic Illness Fund"
are subject
to the following provisions. Upon appropriation by the
legislature, expenditures from the
"James 'Tiger' Morton
Catastrophic Illness Fund"
may be made to families or persons
suffering a catastrophic illness, as determined by the catastrophic
illness commission. The catastrophic illness commission shall be
composed of
shall be composed of the ombudsman from the department
of health and human resources, a medical doctor licensed to
practice medicine in this state, an attorney licensed to practice
law in this state, two members from the public at large who are
active in community affairs, a nurse licensed to practice in this
state, and a social worker licensed in this state. The governor
shall appoint the members to the catastrophic illness commission no
later than the thirty-first day of August, one thousand nine
hundred ninety-nine, and the commission shall hold its first
meeting no later than the last day of September, one thousand nine
hundred ninety-nine. Members of the catastrophic illness commission shall receive expenses only, not to exceed fifteen thousand dollars
in the aggregate per year, and shall meet at least quarterly.
Special meetings may be called. The purpose of the catastrophic
illness commission is to make an annual recommendation to the
Legislature regarding appropriations from the catastrophic illness
fund. This recommendation shall be made to the Legislature no
later than the second Wednesday of January, two thousand.
(f) Upon appropriation by the Legislature, the state fire
marshall shall distribute the funds from the "Fire Fighters'
Training Fund" to provide training for fire fighters. The state
fire marshall shall use a portion of the funds in the "Fire
Fighters' Training Fund"
to employ a director and secretary. The
director is responsible for making all of the arrangements and
establishing the conditions under which the moneys from this fund
may be expended. The director shall develop a list of training
requirements and reimbursement criteria regarding training and
funding of training. The
director may expend funds to absorb the
extra costs involved in those areas of this State where it is
difficult or impossible to meet the minimum number of required
students for a class.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.