ENROLLED
H. B. 113
(By Mr. Speaker, (Mr. Thompson) and Delegate Armstead)
[By Request of the Executive]
[Passed June 2, 2009; in effect from passage.]
AN ACT to amend and reenact §31-15-6 of the Code of West Virginia,
1931, as amended; to amend said code by adding thereto a new
section, designated §31-15-16a; to amend and reenact §18B-10-8
of said code; and to amend and reenact §29-22-18 of said code,
all relating to providing funding for institutions of higher
education, state parks, the state capitol complex, other state
facilities or tourism sites; authorizing the Economic
Development Authority to issue and refund revenue bonds from
time to time for capital improvement projects; providing for
bond amounts and maturity; allocating bond proceeds;
establishing procedures for project selection; providing for
the allocation of lottery revenues for the bond debt payments;
and authorizing the use of moneys in the Community and
Technical College Capital Improvement Fund for capital
improvements and capital projects.
Be it enacted by the Legislature of West Virginia:
That §31-15-6 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that said code be amended by adding
thereto a new section, designated §31-15-16a; that §18B-10-8 of
said code be amended and reenacted; and that §29-22-18 of said code
be amended and reenacted, all to read as follows:
CHAPTER 31. CORPORATIONS.
ARTICLE 15. WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY.
§31-15-6. General powers of authority.
The authority, as a public corporation and governmental
instrumentality exercising public powers of the state, shall have
and may exercise all powers necessary or appropriate to carry out
the purposes of this article, including the power:
(a) To cooperate with industrial development agencies in
efforts to promote the expansion of industrial, commercial,
manufacturing and tourist activity in this state.
(b) To determine, upon the proper application of an industrial
development agency or an enterprise, whether the declared public
purposes of this article have been or will be accomplished by the
establishment by such agency or enterprise of a project in this
state.
(c) To conduct examinations and investigations and to hear
testimony and take proof, under oath or affirmation, at public or
private hearings, on any matter relevant to this article and necessary for information on the establishment of any project.
(d) To issue subpoenas requiring the attendance of witnesses
and the production of books and papers relevant to any hearing
before such authority or one or more members appointed by it to
conduct any hearing.
(e) To apply to the circuit court having venue of such offense
to have punished for contempt any witness who refuses to obey a
subpoena, to be sworn or affirmed or to testify or who commits any
contempt after being summoned to appear.
(f) To authorize any member of the authority to conduct
hearings, administer oaths, take affidavits and issue subpoenas.
(g) To financially assist projects by insuring obligations in
the manner provided in this article through the use of the
insurance fund.
(h) To finance any projects by making loans to industrial
development agencies or enterprises upon such terms as the
authority shall deem appropriate:
Provided, That nothing contained
in this subsection (h) or under any other provision in this article
shall be construed as permitting the authority to make loans for
working capital:
Provided, however, That nothing contained in this
article shall be construed as prohibiting the authority from
insuring loans for working capital made to industrial development
agencies or to enterprises by financial institutions:
Provided
further, That nothing contained in this subsection or any other provision of this article shall be construed as permitting the
authority to refinance existing debt except when such refinancing
will result in the expansion of the enterprise whose debt is to be
refinanced or in the creation of new jobs.
(i) To issue revenue bonds or notes to fulfill the purposes of
this article, and to secure the payment of such bonds or notes, all
as hereinafter provided.
(j) To issue and deliver revenue bonds or notes in exchange
for a project.
(k) To borrow money for its purposes and issue bonds or notes
for the money and provide for the rights of the holders of the
bonds or notes or other negotiable instruments, to secure the bonds
or notes by a deed of trust on, or an assignment or pledge of, any
or all of its property and property of the project, including any
part of the security for loans, and the authority may issue and
sell its bonds and notes, by public or private sale, in such
principal amounts as it shall deem necessary to provide funds for
any purposes under this article, including the making of loans for
the purposes set forth in this article.
(l) To maintain such sinking funds and reserves as the board
shall determine appropriate for the purposes of meeting future
monetary obligations and needs of the authority.
(m) To sue and be sued, implead and be impleaded, and complain
and defend in any court.
(n) To adopt, use and alter at will a corporate seal.
(o) To make, amend, repeal and adopt both bylaws and rules and
regulations for the management and regulation of its affairs.
(p) To appoint officers, agents and employees and to contract
for and engage the services of consultants.
(q) To make contracts of every kind and nature to execute all
instruments necessary or convenient for carrying on its business.
(r) To accept grants and loans from and enter into contracts
and other transactions with any federal agency.
(s) To take title by conveyance or foreclosure to any project
where acquisition is necessary to protect any loan previously made
by the authority and to sell, by public or private sale, transfer,
lease or convey such project to any enterprise.
(t) To participate in any reorganization proceeding pending
pursuant to the United States Code (being the act of Congress
establishing a uniform system of bankruptcy throughout the United
States, as amended) or in any receivership proceeding in a state or
federal court for the reorganization or liquidation of an
enterprise. The authority may file its claim against any such
enterprise in any of the foregoing proceedings, vote upon any
questions pending therein which requires the approval of the
creditors participating in any reorganization proceeding or
receivership, exchange any evidence of such indebtedness for any
property, security or evidence of indebtedness offered as a part of the reorganization of such enterprise or of any other entity formed
to acquire the assets thereof and may compromise or reduce the
amount of any indebtedness owing to it as a part of any such
reorganization.
(u) To acquire, construct, maintain, improve, repair, replace
and operate projects within this state, as well as streets, roads,
alleys, sidewalks, crosswalks and other means of ingress and egress
to and from projects located within this state.
(v) To acquire, construct, maintain, improve, repair and
replace and operate pipelines, electric transmission lines,
waterlines, sewer lines, electric power substations, waterworks
systems, sewage treatment and disposal facilities and any
combinations thereof for the use and benefit of any enterprise
located within this state.
(w) To acquire watersheds, water and riparian rights, rights-
of-way, easements, licenses and any and all other property,
property rights and appurtenances for the use and benefit of any
enterprise located within this state.
(x) To acquire, by purchase, lease, donation or eminent
domain, any real or personal property, or any right or interest
therein, as may be necessary or convenient to carry out the
purposes of the authority. Title to all property, property rights
and interests acquired by the authority shall be taken in the name
of the authority.
(y) To issue renewal notes, or security interests, to issue
bonds to pay notes or security interests and, whenever it deems
refunding expedient, to refund any bonds or notes by the issuance
of new bonds or notes, whether the bonds or notes to be refunded
have or have not matured and whether or not the authority
originally issued the bonds or notes to be refunded.
(z) To apply the proceeds from the sale of renewal notes,
security interests or refunding bonds or notes to the purchase,
redemption or payment of the notes, security interests or bonds or
notes to be refunded.
(aa) To accept gifts or grants of property, funds, security
interests, money, materials, labor, supplies or services from the
United States of America or from any governmental unit or any
person, firm or corporation, and to carry out the terms or
provisions of, or make agreements with respect to, or pledge, any
gifts or grants, and to do any and all things necessary, useful,
desirable or convenient in connection with the procuring,
acceptance or disposition of gifts or grants.
(bb) To the extent permitted under its contracts with the
holders of bonds, security interests or notes of the authority, to
consent to any modification of the rate of interest, time of
payment of any installment of principal or interest, security or
any other term of any bond, security interests, note or contract or
agreement of any kind to which the authority is a party.
(cc) To sell loans, security interests or other obligations in
the loan portfolio of the authority. Such security interests shall
be evidenced by instruments issued by the authority. Proceeds from
the sale of loans, security interests, or other obligations may be
used in the same manner and for the same purposes as bond and note
revenues.
(dd) To procure insurance against any losses in connection
with its property, operations or assets in such amounts and from
such insurers as the authority deems desirable.
(ee) To sell, license, lease, mortgage, assign, pledge or
donate its property, both real and personal, or any right or
interest therein to another or authorize the possession, occupancy
or use of such property or any right or interest therein by
another, in such manner and upon such terms as it deems
appropriate.
(ff) To participate with the state and federal agencies in
efforts to promote the expansion of commercial and industrial
development in this state.
(gg) To finance, organize, conduct, sponsor, participate and
assist in the conduct of special institutes, conferences,
demonstrations and studies relating to the stimulation and
formation of business, industry and trade endeavors.
(hh) To conduct, finance and participate in technological,
business, financial and other studies related to business and economic development.
(ii) To conduct, sponsor, finance, participate and assist in
the preparation of business plans, financing plans and other
proposals of new or established businesses suitable for support by
the authority.
(jj) To prepare, publish and distribute, with or without
charge as the authority may determine, such technical studies,
reports, bulletins and other materials as it deems appropriate,
subject only to the maintenance and respect for confidentiality of
client proprietary information.
(kk) To exercise such other and additional powers as may be
necessary or appropriate for the exercise of the powers herein
conferred.
(ll) To exercise all of the powers which a corporation may
lawfully exercise under the laws of this state.
(mm) To contract for the provision of legal services by
private counsel, and notwithstanding the provisions of article
three, chapter five, such counsel may, but is not limited to,
represent the authority in court, negotiate contracts and other
agreements on behalf of the authority, render advice to the
authority on any matter relating thereto, prepare contracts and
other agreements, and provide such other legal services as may be
requested by the authority.
(nn) To develop, maintain, operate and apply for the establishment of foreign trade zones pursuant to and in accordance
with all applicable provisions of federal law.
(oo) To exercise the powers and responsibilities previously
vested in the state building commission by section eleven-a,
article six, chapter five including, but not limited to, the
authority to refund bonds issued in accordance with that section.
§31-15-16a.
Bonds for capital improvements at institutions of
higher education, state parks, the state capitol
complex, other state facilities or tourism sites;
limitations; authority to issue revenue bonds; use
of funds to pay for projects.
(a)(1) The economic development authority shall, in accordance
with the provisions of this article, issue revenue bonds from time
to time, to pay for a portion of the cost of constructing,
equipping, improving or maintaining capital improvement projects
under this section or to refund the bonds, at the discretion of the
authority. The principal amount of the bonds issued under this
section shall not exceed, in the aggregate, $150 million. Any
revenue bonds issued on or after the effective date of this section
which are secured by lottery proceeds shall mature at a time or
times not exceeding thirty years from their respective dates. The
principal of, and the interest and redemption premium, if any, on
the bonds shall be payable solely from the "Education, Arts,
Sciences and Tourism Debt Service Fund" established in section eleven-a, article six, chapter five and continued by this section.
(2)
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 section. The authority may further provide in the trust
agreement for priorities on the revenues paid into the Education,
Arts, Sciences and Tourism 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 section or
section eleven-a, article six, chapter five of this code. The
bonds issued pursuant to this section shall be separate from all
other bonds which may be or have been issued from time to time
under the provisions of section eleven-a, article six, chapter five
of this code
. The Education, Arts, Sciences and Tourism Debt
Service Fund shall be pledged solely for the repayment of bonds
issued pursuant to this section and section eleven-a, article six,
chapter five of this code
. On or prior to May 1 of each year,
commencing May 1, 2010, the authority shall certify to the state
lottery director the principal and interest and coverage ratio
requirements for the following fiscal year on any revenue bonds or
refunding revenue bonds issued pursuant to this section, and for
which moneys deposited in the Education, Arts, Sciences and Tourism
Debt Service Fund have been pledged, or will be pledged, for
repayment pursuant to this section.
(3) After the authority has issued bonds authorized by this
section, and after the requirements of all funds have been
satisfied, including coverage and reserve funds established in
connection with the bonds issued pursuant to this section, any
balance remaining in the Education, Arts, Sciences and Tourism Debt
Service Fund may be used for the redemption of any of the
outstanding bonds issued under this section 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
immediately canceled and shall not again be issued
.
(b) The authority shall expend sixty percent of the bond
proceeds, net of issuance costs, reserve funds and refunding costs,
for certified capital improvement projects at state institutions of
higher education. The Higher Education Policy Commission shall
submit a proposed list of projects which will receive funds from
the bond proceeds to the Governor on or before January 1, 2010.
Thereafter, the Governor shall certify to the authority on or
before February 1, 2010, a list of those capital improvement
projects at state institutions of higher education which will
receive funds from the proceeds of bonds issued pursuant to this
section. Once certified, the list may not thereafter be altered or
amended other than by legislative enactment.
(c) The authority shall expend the balance of the bond proceeds for certified projects at state parks, the capitol
complex, other state facilities or tourism sites. The secretary of
the department of administration, the director of the division of
natural resources, the director of the West Virginia development
office and a representative of the capitol building commission,
other than the secretary of the department of administration, who
shall be selected by the capitol building commission shall submit
a proposed list of projects which will receive funds from the bond
proceeds to the Governor on or before January 1, 2010. Thereafter,
the Governor shall certify to the authority on or before February
1, 2010, a list of those capital improvement projects at state
parks, the state capitol complex, other state facilities or tourism
sites which will receive funds from the proceeds of bonds issued
pursuant to this section. Once certified, the list may not
thereafter be altered or amended other than by legislative
enactment.
CHAPTER 18B. HIGHER EDUCATION.
ARTICLE 10. FEES AND OTHER MONEY COLLECTED AT STATE INSTITUTIONS
OF HIGHER EDUCATION.
§18B-10-8. Collection; disposition and use of capital and
auxiliary capital fees; creation of special
capital and auxiliary capital improvements funds;
revenue bonds.
(a) This section and any rules adopted by the commission, council or both, in accordance with this section and article
three-a, chapter twenty-nine-a of this code, governs the
collection, disposition and use of the capital and auxiliary
capital fees authorized by section one of this article. The
statutory provisions governing collection and disposition of
capital funds in place prior to the enactment of this section
remain in effect.
(b)
Fees for full-time students. -- The governing boards shall
fix capital and auxiliary capital fees for full-time students at
each state institution of higher education per semester. For
institutions under its jurisdiction, a governing board may fix the
fees at higher rates for students who are not residents of this
state.
(c)
Fees for part-time students. -- For all part-time students
and for all summer school students, the governing boards shall
impose and collect the fees in proportion to, but not exceeding,
the fees paid by full-time students. Refunds of the fees may be
made in the same manner as any other fee collected at state
institutions of higher education.
(d) There is continued in the State Treasury a special capital
improvements fund and special auxiliary capital improvements fund
for each state institution of higher education and the commission
into which shall be paid all proceeds, respectively, of:
(1) The capital and auxiliary capital fees collected from students at all state institutions of higher education pursuant to
this section; and
(2) The fees collected from the students pursuant to section
one of this article. The fees shall be expended by the commission
and governing boards for the payment of the principal of or
interest on any revenue bonds issued by the board of regents or the
succeeding governing boards for which the fees were pledged prior
to the enactment of this section.
(e) The governing boards may make expenditures from any of the
special capital improvements funds or special auxiliary capital
improvement funds established in this section to finance, in whole
or in part, together with any federal, state or other grants or
contributions, for any one or more of the following projects:
(1) The acquisition of land or any rights or interest in land;
(2) The construction or acquisition of new buildings;
(3) The renovation or construction of additions to existing
buildings;
(4) The acquisition of furnishings and equipment for the
buildings; and
(5) The construction or acquisition of any other capital
improvements or capital education facilities at the state
institutions of higher education, including any roads, utilities or
other properties, real or personal, or for other purposes
necessary, appurtenant or incidental to the construction, acquisition, financing and placing in operation of the buildings,
capital improvements or capital education facilities, including
student unions, dormitories, housing facilities, food service
facilities, motor vehicle parking facilities and athletic
facilities.
(f) The governing boards, in their discretion, may use the
moneys in the special capital improvements funds and special
auxiliary improvement funds to finance the costs of the purposes
set forth in this section on a cash basis. The commission, when
singly or jointly requested by the governing boards, periodically
may issue revenue bonds of the state as provided in this section to
finance all or part of the purposes and pledge all or any part of
the moneys in such special funds for the payment of the principal
of and interest on the revenue bonds, and for reserves for the
revenue bonds. Any pledge of the special funds for the revenue
bonds shall be a prior and superior charge on the special funds
over the use of any of the moneys in the funds to pay for the cost
of any of the purposes on a cash basis. Any expenditures from the
special funds, other than for the retirement of revenue bonds, may
be made by the commission or governing boards only to meet the cost
of a predetermined capital improvements program for one or more of
the state institutions of higher education, in the order of
priority agreed upon by the governing board or boards and the
commission and for which the aggregate revenue collections projected are presented to the Governor for inclusion in the annual
budget bill, and are approved by the Legislature for expenditure.
(g) The revenue bonds periodically may be authorized and
issued by the commission or governing boards to finance, in whole
or in part, the purposes provided in this section in an aggregate
principal amount not exceeding the amount which the commission
determines can be paid as to both principal and interest and
reasonable margins for a reserve therefor from the moneys in the
special funds.
(h) The issuance of the revenue bonds shall be authorized by
a resolution adopted by the governing board receiving the proceeds
and the commission and the revenue bonds shall bear the date or
dates; mature at such time or times not exceeding forty years from
their respective dates; be in such form either coupon or
registered, with such 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
prior redemption at such prices not exceeding one hundred five per
centum of the principal amount thereof; and shall have the other
terms and provisions determined by the governing board receiving
the proceeds and the commission. The revenue bonds shall be signed
by the Governor and by the chancellor of the commission or the
chair of the governing boards authorizing the issuance thereof,
under the Great Seal of the State, attested by the Secretary of State, and the coupons attached to the revenue bonds shall bear the
facsimile signature of the chancellor of the commission or the
chair of the appropriate governing boards. The revenue bonds shall
be sold in the manner the commission or governing board determines
is for the best interests of the state.
(i) The commission or governing boards may enter into trust
agreements with banks or trust companies, within or without the
state, and in the trust agreements or the resolutions authorizing
the issuance of the bonds may enter into valid and legally binding
covenants with the holders of the revenue bonds as to the custody,
safeguarding and disposition of the proceeds of the revenue bonds,
the moneys in the special funds, sinking funds, reserve funds or
any other moneys or funds; as to the rank and priority, if any, of
different issues of revenue bonds by the commission or governing
boards under the provisions of this section; as to the maintenance
or revision of the amounts of the fees; as to the extent to which
swap agreements, as defined in subsection (h), section two, article
two-g, chapter thirteen of this code shall be used in connection
with the revenue bonds, including such provisions as payment, term,
security, default and remedy provisions as the commission shall
consider necessary or desirable, if any, under which the fees may
be reduced; and as to any other matters or provisions which are
considered necessary and advisable by the commission or governing
boards in the best interests of the state and to enhance the marketability of the revenue bonds.
(j) After the issuance of any revenue bonds, the fees at the
state institutions of higher education pledged to the payment
thereof may not be reduced as long as any of the 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 the revenue bonds were issued.
The revenue bonds are and constitute negotiable instruments under
the Uniform Commercial Code of this state; 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; and the revenue bonds may not be
considered to be obligations or debts of the state and the credit
or taxing power of the state may not be pledged therefor, but the
revenue bonds shall be payable only from the revenue pledged
therefor as provided in this section.
(k) Additional revenue bonds may be issued by the commission
or governing boards pursuant to this section and financed by
additional revenues or funds dedicated from other sources. There
is hereby created in the State Treasury a special revenue fund
known as the Community and Technical College Capital Improvement
Fund into which shall be deposited the amounts specified in
subsection (j), 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 the commission for community and
technical college capital improvements
or used by the Council on a
cash basis as provided under subdivision (4), subsection (j),
section eighteen, article twenty-two, chapter twenty-nine of this
code for community and technical college capital improvements or
capital projects.
(l) Funding of systemwide and campus-specific revenue bonds
under any other section of this code is continued and authorized
pursuant to the terms of this section. Revenues of any state
institution of higher education pledged to the repayment of any
revenue bonds issued pursuant to this code shall remain pledged.
(m) Any revenue bonds for state institutions of higher
education proposed to be issued under this section or other
sections of this code first must be approved by the commission.
(n) Revenue bonds issued pursuant to this code may be issued
by the commission or governing boards, either singly or jointly.
(o) Fees pledged for repayment of revenue bonds issued under
this section or article twelve-b, chapter eighteen prior to the
effective date of this section shall be transferred to the
commission in a manner prescribed by the commission. The
commission may transfer funds from the accounts of institutions
pledged for the repayment of revenue bonds issued prior to the effective date of this section or issued subsequently by the
commission upon the request of institutions, if an institution
fails to transfer the pledged revenues to the commission in a
timely manner.
(p) Effective July 1, 2004, the capital and auxiliary capital
fees authorized by this section and section one of this article are
in lieu of any other fees set out in this code for capital and
auxiliary capital projects to benefit public higher education
institutions. Notwithstanding any other provisions of this code to
the contrary, in the event any capital, tuition, registration or
auxiliary fees are pledged to the payment of any revenue bonds
issued pursuant to any general bond resolutions of the commission,
any of its predecessors or any institution, adopted prior to the
effective date of this section, such fees shall remain in effect in
amounts not less than the amounts in effect as of that date, until
the revenue bonds payable from any of the fees have been paid or
the pledge of the fees is otherwise legally discharged.
CHAPTER TWENTY-NINE. 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 continued a special revenue fund in the State
Treasury which shall be designated and known as the State Lottery
Fund. The fund consists 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 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. 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 $250,000. On a
monthly basis, the director shall report to the Joint Committee on
Government and Finance of the Legislature any surplus in excess of
$250,000 and remit to the State Treasurer the entire amount of
those surplus funds in excess of $250,000 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 bonds authorized to be issued
pursuant to section eight, article nine-d, chapter eighteen of this
code, 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 and section sixteen-a, article fifteen, chapter thirty-
one of this code, and then satisfying the requirements for funds
dedicated to the Community and Technical College Capital
Improvement Fund in subsection (j) of this section to retire the
bonds for community and technical college capital improvements
authorized to be issued pursuant to section eight, article ten, chapter eighteen-b of this code, any and all remaining funds in the
State Lottery Fund shall be made available to pay debt service in
connection with any revenue bonds issued pursuant to section
eighteen-a of this article, if and to the extent needed for such
purpose from time to time. 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 (k) 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 (l) of this section. No
transfer to any account other than the School Building Debt Service
Fund, the Education, Arts, Sciences and Tourism Debt Service Fund,
the Community and Technical College Capital Improvement Fund, the
Economic Development Project Fund created under section eighteen-a,
article twenty-two, chapter twenty-nine of this code, or any fund
from which debt service is paid under subsection (c), section
eighteen-a of this article 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, the State Building Commission,
the Higher Education Policy Commission, the Economic Development
Authority or which are otherwise secured by lottery proceeds. No
additional transfer may be made to any account other than the
School Building Debt Service Account and the Education, Arts,
Sciences and Tourism Debt Service Fund, and the Community and
Technical College Capital Improvement 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, the State Building Commission and the Higher
Education Policy Commission which are secured by net profits.
(g) There is 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 may 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, as long
as revenue bonds or refunding bonds are outstanding, 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 April 1, 1994, 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 $1,800,000 nor may 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 $18 million. 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 $27 million 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 profits
shall become available for debt service on additional school
improvement bonds as a first priority from the net profits of the
lottery or may at the discretion of the authority be placed into
the School Construction Fund created pursuant to the provisions of
section six, article nine-d, chapter eighteen of this code.
(i) Beginning on or before the July 28, 1996, and continuing
on or before the twenty-eighth day of each succeeding month
thereafter, as long as revenue bonds or refunding bonds
issued in
accordance with section eleven-a, article six, chapter five or
section sixteen-a, article fifteen, chapter thirty-one of this code
are outstanding, 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 April 1, 1996, as certified to
the lottery director in accordance with the provisions of section
eleven-a, article six, chapter five or section sixteen-a, article
fifteen, chapter thirty-one of this code. In no event may the
monthly amount allocated exceed $1 million nor may 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 $10 million. 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 $15 million
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) Beginning on or before the July 28, 2008, and continuing
on or before the twenty-eighth day of each succeeding month
thereafter, as long as revenue bonds or refunding bonds are
outstanding, the lottery director shall allocate to the Community and Technical College Capital Improvement Fund, created pursuant to
section eight, article ten, chapter eighteen-b of this code, as a
third priority from 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 April 1, 2008, as certified by the lottery director in
accordance with the provisions of that section. In no event may
the monthly amount allocated exceed $500,000 nor may the total
allocation paid to the Community and Technical Capital Improvement
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 $5 million. In the event there are
insufficient funds available in any month to transfer the amount
required pursuant to this subsection to the Community and Technical
College Capital Improvement Fund, the deficiency shall be added to
the amount transferred in the next succeeding month in which
revenues are available to transfer the deficiency.
(1) A third-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 exceeding
$7,500,000 annually, may be granted by the Higher Education Policy
Commission in favor of the bonds it issues which are secured by the
net lottery profits.
(2) When the community and technical college capital
improvement bonds secured by profits from the lottery and deposited
in the Community and Technical College Capital Improvement Fund
mature, the profits shall become available for debt service on
additional community and technical college capital improvement
bonds as a second priority from the net profits of the lottery.
(3) The Council for Community and Technical College Education
shall approve all community and technical college capital
improvement plans prior to the distribution of bond proceeds.
(4) Prior to the issuance of community and technical college
revenue bonds pursuant to this subsection, the lottery director
shall transfer $5 million to the Community and Technical College
Improvement Fund, less any amounts needed for initial debt service
payments, to be used on a cash basis for community and technical
college capital improvements and capital projects.
(k) There is 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 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 distributed in the manner provided below and
may 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 any senior citizens medical care and other
programs it considers beneficial to the citizens of this state.
(l) 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.
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