
COMMITTEE SUBSTITUTE
FOR
H. B. 4165
(By Delegates Mezzatesta and Frederick)
(Originating in the Committee on Finance)
[February 22, 2000]
A BILL to amend and reenact section six, article five-p, chapter
sixteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to further amend said
article by adding thereto a new section, designated section
ten-a; and to amend and reenact section eighteen, article
twenty-two, chapter twenty-nine of this code,
all relating
to the senior citizens prescription drug subsidy program;
requiring the commissioner of the bureau of senior services
to administer the program; providing for the establishment
and maintenance of the program in legislative rules jointly
proposed for promulgation by the commissioner of the bureau
of senior citizens and the director of the public employees
insurance agency; and funding for the program.
Be it enacted by the Legislature of West Virginia:
That section six, article five-p, chapter sixteen of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that said article be further amended by adding thereto a new section, designated section ten-
a; and that section eighteen, article twenty-two, chapter twenty-
nine of this code
be amended and reenacted
all to read as
follows:
CHAPTER 16. PUBLIC HEALTH.
ARTICLE 5P. SENIOR SERVICES.
§16-5P-6. Powers and duties generally.
The commissioner shall be the executive and administrative
head of the bureau and shall have the power and duty to:
(a) Exercise general supervision of the bureau;
(b) Propose legislative rules for the effective and
expeditious performance and discharge of the duties and
responsibilities placed upon the commissioner by law;
(c) Conduct and coordinate studies of the problems of
encountered by the state's older people citizens;
(d) Encourage and promote the establishment of local
programs and services for the aging;
(e) Conduct public education programs of public education on
the problems of the related to aging;
(f) Review state programs for the aging, and annually make
recommendations to the governor and the Legislature;
(g) Encourage and assist governmental and private agencies
to coordinate effective efforts on behalf of the aging;
(h) Coordinate statewide local and voluntary efforts to
serve the aging and develop programs at the local level;
(i) Supervise fiscal management and responsibilities of the bureau;
(j) Keep an accurate and complete record of all bureau
proceedings, record and file all bonds and contracts and assume
responsibility for the custody and preservation of all papers and
documents of the bureau;
(k) Submit an annual report to the governor on the
condition, operation and functioning of the bureau;
(l) Invoke any legal or special remedy for the enforcement
of orders or the provisions of this chapter;
(m) Standardize administration, expedite bureau business,
revise rules and promote the efficiency of the service;
(n) Provide a program of continuing professional, technical
and specialized instruction for the personnel of the bureau and
local service providers; and
(o) Receive on behalf of the state any grant or gift and
accept the same, so that the title shall pass to the state. All
moneys from grants or gifts shall be deposited with the state
treasurer in a special fund and shall be used for the purposes
set forth in the grant or gift; and
(p) Administer the program provided for in section ten-a of
this article by subsidizing, within the funds available, the cost
of prescription drugs for eligible persons over the age of
sixty-five years.
§16-5P-10a. Senior citizens prescription drug subsidy program.
(a) There is hereby created a senior citizens prescription
drug subsidy program, which shall be administered by the bureau of senior services in accordance with the provisions of this
section and within the funding made available pursuant to the
provisions of subsection (c) of this section. The program shall
be designed to provide a subsidy for prescription medications
purchased by eligible citizens over the age of sixty-five years:
Provided, That the otherwise eligible citizen does not qualify
for other third-party reimbursement for prescription drugs.
Funds administered as reimbursement for prescription drugs under
the provisions of this section may be paid directly to qualified
pharmaceutical providers, or the eligible citizen, upon proof of
purchase.
(b) The commissioner of the bureau of senior services and
the director of the public employees insurance agency shall
jointly propose legislative rules for promulgation in accordance
with the provisions of article three, chapter twenty-nine-a of
this code, to provide for the establishment and administration of
the senior citizens prescription drug subsidy program consistent
with the provisions of this section. At a minimum, the rules
shall accomplish the following:
(1) Establish eligibility guidelines for program
participation based on income and the need for the prescription
drugs;
(2) Develop criteria, which is to be applied uniformly, to
determine which pharmaceutical providers may participate in the
program;
(3) Determine the percentage of subsidy to be provided based on the cost of the particular prescription drug, the availability
of an equivalent generic prescription drug, and the amount of
funds available in the account;
(4) Develop criteria, which is to be applied uniformly, to
determine the circumstances in which a pharmaceutical provider or
eligible person would be declared ineligible; and

(5) Develop a system to verify that the prescription drug
has actually been dispensed to the eligible person; and
(6) Maintain a registry of companies and organizations that
provide free medications or provide assistance to persons in
securing medications, and make this information available to
consumers through all local senior programs.
(c) Expenditures for the establishment and maintenance of
the senior citizens prescription drug subsidy program
shall be
made by the commissioner of the bureau of senior services
pursuant the Legislature's appropriations of amounts allocated
for this purpose under subdivision (2), subsection (j), section
eighteen, article twenty-two, chapter twenty-nine of this code.
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 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 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 three, article one, 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 these educational programs 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.
When the school improvement bonds, secured by profits from
the lottery and deposited in the school debt service fund,
mature, the lottery director shall allocate monthly, from the net
profits of the lottery for the preceding month, an amount equal
to one million five hundred thousand dollars into the school
construction fund created pursuant to the provisions of section
six, article nine-d, chapter eighteen of this code.
(i) On or before the twenty-eighth day of each month 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)(1) 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 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.
(2) Unless otherwise prohibited by the provisions of this
section, the Legislature shall include in its allocation to the
lottery senior citizens fund an additional amount to be
appropriated for expenditure for the purpose of establishing and
maintaining the senior citizens prescription drug subsidy program
described in section ten-a, article five-p, chapter sixteen of
this code. The additional amount allocated and appropriated by
the Legislature for this purpose for fiscal year two thousand one
shall be not less than six million dollars. The amount allocated
and appropriated
by the Legislature for this purpose for fiscal
year two thousand two and thereafter shall be not less than nine
million dollars.
(k) The division of natural resources and the West Virginia
development office, as appropriated by the Legislature, may use
the amounts allocated to them 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.