Senate Bill No. 2015

(By Senators Helmick, Sharpe, Chafin, Plymale, Prezioso, Edgell, Love, Bailey, Bowman, McCabe, Dempsey, Boley,

Minear, Facemyer, Guills and Sprouse)

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[Originating in the Committee on Finance;


reported June 13, 2003.]

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A BILL to amend and reenact section eleven, article one, chapter nine-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact section nine- a, article twenty-two, chapter twenty-nine of said code, all relating to the receipt and disbursement of funds for the architectural fees and project costs for the construction of a veterans' nursing home; and clarifying that only operational costs are appropriated by the Legislature.

Be it enacted by the Legislature of West Virginia:
That section eleven, article one, chapter nine-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that section nine-a, article twenty- two, chapter twenty-nine of said code be amended and reenacted, all to read as follows:
CHAPTER 9A. VETERANS AFFAIRS.

ARTICLE 1. DIVISION OF VETERANS AFFAIRS.
§9A-1-11. Establishment of veterans facilities support fund; authorized expenditures.
There is hereby created in the state treasury a special revenue fund to be designated and known as the veterans facilities support fund. All interest or other returns earned on the investment of the moneys in the fund shall be credited to the fund. Funds paid into the account shall be derived from the following sources: (1) Any gift, grant, bequest, endowed fund or donation which may be received by any veterans facility created by statute from any governmental entity or unit or any person, firm, foundation or corporation; and (2) all interest or other return on investment accruing to the fund. Moneys in the fund are to be used for the operational costs of any veterans facility created by statute, the acquisition, design, construction, equipping, furnishing, including without limitation the payment of debt service on bonds issued to finance the foregoing and/or as otherwise designated or specified by the donor. Any balance including accrued interest or other earnings in this special fund at the end of any fiscal year shall not revert to the general revenue fund but shall remain in the fund for use by the director of the division of veterans affairs for any operational costs of any veterans facility created by statute or as otherwise designated or specified by the donor. Funds from the veterans facility support fund for operational costs will be distributed by appropriation of the Legislature. Funds from the veterans facility support fund for the acquisition, design, construction, equipping, furnishing, including without limitation the payment of debt service on bonds issued to finance the veterans nursing home shall be transferred to the veterans nursing home building fund upon written request of the director of the division of veterans affairs to the investment management board and the state treasurer in accordance with the provisions of this section.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 22. STATE LOTTERY ACT.
§29-22-9a. Veterans instant lottery scratch-off game.
(a)Beginning the first day of September, two thousand, the commission shall establish an instant lottery scratch-off game designated as the veterans benefit game, which is offered by the lottery.
(b)Notwithstanding the provisions of section eighteen of this article, and subject to the provisions of subsection (c) of this section, all net profits received from the sale of veterans benefit game lottery tickets, materials and games are deposited with the state treasurer into the veterans lottery fund created under subsection (c) of this section, and upon the effective date of the enactment of this section in two thousand two, the Legislature may make appropriations from this fund for operational costs from monies remaining in the veterans lottery fund after the acquisition, design, construction, equipping, furnishing, including without limitation the payment of debt service on bonds issued to finance the foregoing architectural and other project costs associated with construction have been paid. Funds from the veterans lottery fund for the acquisition, design, construction, equipping, furnishing, including without limitation the payment of debt service on bonds issued to finance the construction of a veterans nursing home shall be transferred to the veterans nursing home building fund upon written request of the director of the division of veterans affairs to the investment management board and the state treasurer in accordance with the provisions of this section. operational costs, and for payment of principal and interest for revenue bonds issued under provisions of section seven, article twenty-nine-a, chapter sixteen of this code: Provided, That once Once the payment of the principal and interest, any required operational costs, and architectural and other project costs associated with construction are paid in full for the construction and operation of the initial veterans skilled nursing facility, the Legislature may appropriate from the fund created under this section moneys for the construction, including the architectural fees and other associated costs, equipping and operation of additional skilled nursing facilities for veterans of the armed forces of the United States military: Provided, however, That after the payment of the above-mentioned items, the Legislature may appropriate any excess funds to the general revenue fund.
(c)There is hereby created in the state treasury a special revenue fund designated and known as the veterans lottery fund which shall consist of all revenues derived from the veterans benefit game, and any appropriations to the fund by the Legislature and all interest or other returns earned from investment of the fund.
(d)There is hereby created in the state treasury a special revenue fund designated and known as the veterans nursing home building fund which shall consist of all funds for the architectural and other project costs related to the construction of the veteran's nursing home acquisition, design, construction, equipping, furnishing, including without limitation the payment of debt service on bonds issued to finance the foregoing. Following the selection of the architect, the director shall certify the estimated total cost of the architect and all construction and associated costs to the joint committee on government and finance prior to the transfer of funds for construction. If funds transferred exceed the estimated costs certified to the joint committee, the director shall certify the additional costs to the joint committee.
(e)There is hereby created in the state treasury a special revenue fund designated and known as the veterans nursing home debt service fund to which the required funding from the veterans nursing home building fund is transferred to refund revenue bonds to pay the principal, interest, redemption premium and coverage ratio requirement, if any, on the revenue bonds issued under the provisions of section seven, article twenty-nine-a, chapter sixteen of this code. The veterans nursing home debt service fund has first priority to all funds in the veterans nursing home building fund established herein not otherwise designated or specified by the donor. Beginning on or before the twenty-eighth day of July, two thousand three, and continuing until the twenty-eighth day of June, two thousand thirty-five, the treasurer shall allocate to the veterans nursing home debt service fund from the veterans nursing home building fund, as a first priority, an amount equal to one- tenth of the projected annual principal, interest, redemption premium and coverage ratio requirement on any and all revenue bonds and refunding bonds issued, or to be issued, on or after the first day of July, two thousand three, under the provisions of section seven, article twenty-nine, chapter sixteen of this code in connection with a veterans nursing home as certified to the treasurer and the investment management board by the director of the division of veterans affairs. In the event there are insufficient funds available in any month to transfer the amount required pursuant to this subsection to the veterans nursing home 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. These funds shall be transferred from the veterans lottery fund to the veterans nursing home building fund upon written request of the director of the division of veterans affairs to the investment management board and the state treasurer. Following the selection of the architect, the director shall certify the estimated total cost of the architect and associated costs to the joint committee on government and finance prior to the transfer of funds. If funds transferred exceed the estimated costs certified to the joint committee, the director shall certify the additional costs to the joint committee.
(e)(f)The commission shall change the design or theme of the veterans benefit game regularly so that the game remains competitive with the other instant lottery scratch-off games offered by the commission. The tickets for the instant lottery game created in this section shall clearly state that the profits derived from the game are being used to benefit veterans in this state.
Note: The purpose of this bill is to remove the requirement that the Legislature must appropriate funds for the architectural fees and construction of the veterans nursing home and to establish a procedure for payment of construction costs and payment of principal and interest of revenue bonds and to clarify that operating costs must be appropriated by the Legislature.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.