ENGROSSED

COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 498

(By Senator Unger)

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[Originating in the Committee on Agriculture;

reported February 26, 2002.]

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A BILL to amend and reenact section fourteen, article eighteen, chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact section eighty-one, article twenty-four, chapter eight of said code; to further amend said article by adding thereto a new section, designated section eighty-five; to amend article one, chapter nineteen of said code by adding thereto a new section, designated section four-d; and to amend and reenact section ten, article twenty-two-a, chapter twenty-nine of said code, all relating to the funding of farmland preservation programs; adding a county farmland preservation fund as a permissible expenditure of funds from hotel occupancy taxes; allowing a county to impose an additional tax on the privilege of transferring title to real estate for funding of farmland preservation programs; creating a farmland preservation fund in the department of agriculture; and funding the farmland preservation fund in the department of agriculture with a portion of excess proceeds from moneys remitted for administration of racetrack video lottery.

Be it enacted by the Legislature of West Virginia:

That section fourteen, article eighteen, chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended be amended and reenacted; that section eighty-one, article twenty-four, chapter eight of said code be amended and reenacted; that said article be further amended by adding thereto a new section, designated section eighty-five; and that article one, chapter nineteen of said code be amended by adding thereto a new section, designated section four-d, all to read as follows:

CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.

ARTICLE 18. HOTEL OCCUPANCY TAX.

§7-18-14. Proceeds of tax; application of proceeds.

(a) Application of proceeds. -- The net proceeds of the tax collected and remitted to the taxing authority pursuant to this article shall be deposited into the general revenue fund of such municipality or county commission and, after appropriation thereof, shall be expended only as provided in subsections (b) and (c) of this section.
(b) Required expenditures. -- At least fifty percent of the net revenue receivable during the fiscal year by a county or a municipality pursuant to this article shall be expended in the following manner for the promotion of conventions and tourism:
(1) Municipalities. -- If a convention and visitor's bureau is located within the municipality, county or region, the governing body of such municipality shall appropriate the percentage required by this subsection to that bureau. If a convention and visitor's bureau is not located within such municipality, county or region, then the percentage appropriation required by this subsection shall be appropriated as follows:
(i) Any hotel located within such municipality, county or region may apply to such municipality for an appropriation to such hotel of a portion of the tax authorized by this article and collected by such hotel and remitted to such municipality, for uses directly related to the promotion of tourism and travel, including advertising, salaries, travel, office expenses, publications and similar expenses. The portion of such tax allocable to such hotel shall not exceed seventy-five percent of that portion of such tax collected and remitted by such hotel which is required to be expended pursuant to this subsection: Provided, That prior to appropriating any moneys to such hotel such municipality shall require the submission of, and give approval to, a budget setting forth the proposed uses of such moneys.
(ii) If there is more than one convention and visitor's bureau located within a municipality, county or region, the city council may allocate the tax authorized by this article to one or more of such bureaus in such portion as the city council in its sole discretion determines.
(iii) The balance of net revenue required to be expended by this subsection shall be appropriated to the regional travel council serving the area in which the municipality is located.
(2) Counties. -- If a convention and visitor's bureau is located within a county or region, the county commission shall appropriate the percentage required by this subsection to that convention and visitor's bureau. If a convention and visitor's bureau is not located within such county or region, then the percentage appropriation required by this subsection shall be appropriated as follows:
(i) Any hotel located within such county or region may apply to such county for an appropriation to such hotel of a portion of the tax authorized by this article and collected by such hotel and remitted to such county, for uses directly related to the promotion of tourism and travel, including advertising, salaries, travel, office expenses, publications and similar expenses. The portion of such tax allocable to such hotel shall not exceed seventy-five percent of that portion of such tax collected and remitted by such hotel which is required to be expended pursuant to this subsection: Provided, That prior to appropriating any moneys to such hotel such county shall require the submission of, and give approval to, a budget setting forth the proposed uses of such moneys.
(ii) If there is more than one convention and visitor's bureau located within a county or region, the county commission may allocate the tax authorized by this article to one or more of such bureaus in such portion as the county commission in its sole discretion determines.
(iii) The balance of net revenue required to be expended by this subsection shall be appropriated to the regional travel council serving the area in which the county is located.
(3) Legislative finding. -- The Legislature hereby finds that the support of convention and visitor's bureaus, hotels and regional travel councils is a public purpose for which funds may be expended. Local convention and visitor's bureaus, hotels and regional travel councils receiving funds under this subsection may expend such funds for the payment of administrative expenses and for the direct or indirect promotion of conventions and tourism and for any other uses and purposes authorized by subdivisions (1) and (2) of this subsection.
(c) Permissible expenditures. -- After making the appropriation required by subsection (b) of this section, the remaining portion of the net revenues receivable during the fiscal year by such county or municipality, pursuant to this article, may be expended for one or more of the purposes set forth in this subsection, but for no other purpose. The purposes for which expenditures may be made pursuant to this subsection are as follows:
(1) The planning, construction, reconstruction, establishment, acquisition, improvement, renovation, extension, enlargement, equipment, maintenance, repair and operation of publicly owned convention facilities, including, but not limited to, arenas, auditoriums, civic centers and convention centers;
(2) The payment of principal or interest or both on revenue bonds issued to finance such convention facilities;
(3) The promotion of conventions;
(4) The construction, operation or maintenance of public parks, tourist information centers and recreation facilities (including land acquisition);
(5) The promotion of the arts;
(6) Historic sites;
(7) Beautification projects; or
(8) Medical care, in an amount not exceeding one hundred thousand dollars, in any county where: (i) There is an urgent necessity to preserve the delivery of acute medical care services; (ii) there is an increase in need for acute medical care services directly related to tourism; (iii) recurrent flooding in the county significantly disrupts, on a periodic basis, the delivery of acute medical care services; (iv) there is an inadequate economic base within the county from any source other than tourism to preserve the delivery of acute medical care services; (v) there is an inadequate economic base directly related to low population in the county, specifically, a population of less than ten thousand persons according to the census of the year one thousand nine hundred ninety; and (vi) there is one and only one hospital within the county and the county commission makes specific findings, by resolution, that all of the foregoing conditions within the county exist.
(9) Farmland preservation as enacted beginning with section seventy-two, article twenty-four, chapter eight of this code.
(d) Definitions. -- For purposes of this section, the following terms are defined:
(1) Convention and visitor's bureau and visitor's and convention bureau. -- "Convention and visitor's bureau" and "visitor's and convention bureau" are interchangeable and either shall mean a nonstock, nonprofit corporation with a full-time staff working exclusively to promote tourism and to attract conventions, conferences and visitors to the municipality, county or region in which such convention and visitor's bureau or visitor's and convention bureau is located or engaged in business within.
(2) Convention center. -- "Convention center" means a convention facility owned by the state, a county, a municipality or other public entity or instrumentality and shall include all facilities, including armories, commercial, office, community service and parking facilities and publicly owned facilities constructed or used for the accommodation and entertainment of tourist and visitors, constructed in conjunction with the convention center and forming reasonable appurtenances thereto.
(3) Fiscal year. -- "Fiscal year" means the year beginning the first day of July and ending the thirtieth day of June of the next calendar year.
(4) Net proceeds. -- "Net proceeds" means the gross amount of tax collections less the amount of tax lawfully refunded.
(5) Promotion of the arts. -- "Promotion of the arts" means activity to promote public appreciation and interest in one or more of the arts. It includes the promotion of music for all types, the dramatic arts, dancing, painting and the creative arts through shows, exhibits, festivals, concerts, musicals and plays.
(6) Recreational facilities. -- "Recreational facilities" means and includes any public park, parkway, playground, public recreation center, athletic field, sports arena, stadium, skating rink or arena, golf course, tennis courts and other park and recreation facilities, whether of a like or different nature, that are owned by a county or municipality.
(7) Region. -- "Region" means an area consisting of one or more counties that have agreed by contract to fund a convention and visitor's bureau to promote those counties.
(8) Regional travel council. -- "Regional travel council" means a nonstock, nonprofit corporation, with a full-time staff working exclusively to promote tourism and to attract conventions, conferences and visitors to the region of this state served by the regional travel council.
(9) Historic site. -- "Historic site" means any site listed on the United States national register of historic places, or listed by a local historical landmarks commission, established under state law, when such sites are owned by a city, a county or a nonprofit historical association and are open from time to time to accommodate visitors.
CHAPTER 8. MUNICIPAL CORPORATIONS.

ARTICLE 24. PLANNING AND ZONING.
§8-24-81. Funding of farmland protection programs.
(a) Creation of fund. -- A county commission may use any funds not specifically limited to other uses to fund and support a farmland protection program and, once having created a county farmland protection board, shall authorize the board to create and maintain a farmland protection fund and hire staff as it considers appropriate.
(a) County funds.--
(1) Creation of county funds. -- Once a county creates a farmland protection board, the county commission shall authorize the county farmland protection board to create and maintain a farmland protection fund and hire staff as it considers appropriate.
(2) Sources. -- A county farmland protection fund is comprised of:
(A) Any moneys not specifically limited to other uses and dedicated to the fund by a county commission;
(B) Any moneys collected pursuant to section eighty-five of this article;
(C) Any moneys collected pursuant to section fourteen, article eighteen, chapter seven of this code; and
(D) Any moneys collected pursuant to section four, article one, chapter nineteen of this code.
(b) State fund.--
(b) (1) Created and continued. -- The West Virginia farmland protection fund is created for the purposes specified in this article.
(c) (2) Sources. -- The West Virginia farmland protection fund is comprised of:
(1) (A) Any money made available to the fund by general or special fund appropriations;
(2) (B) Any money made available to the fund by grants or transfers from governmental or private sources;
(3) (C) Any money realized by investments, interest, dividends or distributions; and
(4) (D) Any money appropriated by the Legislature for the West Virginia farmland protection fund.
(d) (3) Disbursements. -- The treasurer may not disburse any money from the fund other than:
(1) (A) For costs associated with the staffing, administration and technical and legal duties of the authority;
(2) (B) For reasonable expenses incurred by the members of the board of trustees of the authority in the performance of official duties; and
(3) (C) For consideration in the purchase of farmland conservation and preservation easements.
(e) (4) Money remaining at end of fiscal year. -- Any money remaining in the fund at the end of a fiscal year shall not revert to the general revenue fund of the state, but shall remain in the West Virginia farmland protection fund to be used for the purposes specified in this chapter.
(f) (5) Budget. -- The estimated budget of the authority for the next fiscal year shall be included with the budget of the West Virginia department of agriculture.
(g) (6) Audit. -- The fund shall be audited annually.
§8-24-85. Tax on privilege of transferring real property.
(a) Notwithstanding the provisions of section two, article twenty-two, chapter eleven of this code, and effective the first day of January, two thousand three, and thereafter, in addition to the tax imposed pursuant to article twenty-two, chapter eleven of this code, any county that has adopted and implemented a farmland protection program may impose an additional county excise tax for the privilege of transferring title to real estate, up to the amount as defined in section one, article twenty-two, chapter eleven of this code, payable at the time of delivery, acceptance or presenting for recording of the document.
(b) The tax imposed pursuant to this section is to be administered and collected as the tax on the privilege of transferring title to real estate imposed pursuant to the provisions of article twenty-two, chapter eleven of this code.
CHAPTER 19. AGRICULTURE.

ARTICLE 1. DEPARTMENT OF AGRICULTURE.

§19-1-4d. Farmland preservation fees fund.
There is hereby created a special revenue account within the state treasury to be known as "Farmland Preservation Fees Fund". Expenditures from the fund shall be used exclusively by the commissioner of agriculture for the purpose of funding farmland preservation boards in any county which has adopted and implemented a farmland protection program pursuant to the farmland preservation act as enacted beginning with section seventy-two, article twenty- four, chapter eight of this code. Moneys paid into the account shall be from all moneys collected pursuant to section ten(b), article twenty-two-a, chapter twenty-nine of this code.