H. B. 2844
(By Delegates Manchin, Miley, Evans, Fleischauer,
Caputo, Wells, Barker, Moore and Ferro)
[Introduced January 25, 2011; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §22C-1-6 and §22C-1-27 of the Code of
West Virginia, 1931, as amended; to amend and reenact §29-22-
18a of said code; to amend and reenact §31-15A-9 of said code;
and to amend said code by adding thereto a new section,
designated §31-15A-17b, all relating to protection of the
Chesapeake Bay Watershed; authorizing the Water Development
Authority to require consolidation of wastewater treatment
facilities; increasing the bonding authority of the Water
Development Authority for limited purpose; increasing amount
of excess lottery revenue deposited to infrastructure fund;
providing for distribution to infrastructure fund where excess
lottery revenue shortfall occurs; providing exemption for
excess lottery revenue deposited to infrastructure fund;
creating the West Virginia Infrastructure Lottery Revenue Debt
Service Fund and providing for purpose of new fund; and
authorizing Water Development Authority to issue revenue bonds for certain Chesapeake Bay watershed projects.
Be it enacted by the Legislature of West Virginia:
That §22C-1-6 and §22C-1-27 of the Code of West Virginia,
1931, as amended, be amended and reenacted; that §29-22-18a of said
code be amended and reenacted; that §31-15A-9 of said code be
amended and reenacted; and that said code be amended by adding
thereto a new section, designated §31-15A-17b, all to read as
follows:
CHAPTER 22C. ENVIRONMENTAL RESOURCES; BOARDS,
AUTHORITIES, COMMISSIONS AND COMPACTS.
ARTICLE 1. WATER DEVELOPMENT AUTHORITY.
§22C-1-6. Powers, duties and responsibilities of authority
generally.
The Water Development Authority has and may exercise all
powers necessary or appropriate to carry out and effectuate its
corporate purpose. The authority has the power and capacity to:
(1) Adopt and, from time to time, amend and repeal bylaws
necessary and proper for the regulation of its affairs and the
conduct of its business and rules to implement and make effective
its powers and duties, such rules to be promulgated in accordance
with the provisions of chapter twenty-nine-a of this code.
(2) Adopt an official seal.
(3) Maintain a principal office and, if necessary, regional
suboffices at locations properly designated or provided.
(4) Sue and be sued in its own name and plead and be impleaded
in its own name and particularly to enforce the obligations and
covenants made under sections nine, ten and sixteen of this
article. Any actions against the authority shall be brought in the
circuit court of Kanawha County in which the principal office of
the authority shall be located.
(5) Make loans and grants to governmental agencies for the
acquisition or construction of water development projects by any
such governmental agency and, in accordance with the provisions of
chapter twenty-nine-a of this code, adopt rules and procedures for
making such loans and grants.
As a condition of eligibility for
any loan or grant, the authority may require governmental agencies
to consolidate new or existing water development projects.
(6) Acquire, construct, reconstruct, enlarge, improve,
furnish, equip, maintain, repair, operate, lease or rent to, or
contract for operation by a governmental agency or person, water
development projects and, in accordance with the provisions of
chapter twenty-nine-a of this code, adopt rules for the use of such
projects.
(7) Make available the use or services of any water
development project to one or more persons, one or more
governmental agencies or any combination thereof.
(8) Issue water development revenue bonds and notes and water
development revenue refunding bonds of the state, payable solely from revenues as provided in section nine of this article unless
the bonds are refunded by refunding bonds, for the purpose of
paying all or any part of the cost of, or financing by loans to
governmental agencies, one or more water development projects or
parts thereof.
(9) Acquire by gift or purchase, hold and dispose of real and
personal property in the exercise of its powers and the performance
of its duties as set forth in this article.
(10) Acquire in the name of the state, by purchase or
otherwise, on such terms and in such manner as it deems proper, or
by the exercise of the right of eminent domain in the manner
provided in chapter fifty-four of this code, such public or private
lands, or parts thereof or rights therein, rights-of-way, property,
rights, easements and interests it deems necessary for carrying out
the provisions of this article, but excluding the acquisition by
the exercise of the right of eminent domain of any public water
facilities, stormwater systems or wastewater facilities, operated
under permits issued pursuant to the provisions of article eleven,
chapter twenty-two of this code and owned by any person or
governmental agency, and compensation shall be paid for public or
private lands so taken.
(11) Make and enter into all contracts and agreements and
execute all instruments necessary or incidental to the performance
of its duties and the execution of its powers. When the cost under any such contract or agreement, other than compensation for
personal services, involves an expenditure of more than §2,000, the
authority shall make a written contract with the lowest responsible
bidder after public notice published as a Class II legal
advertisement in compliance with the provisions of article three,
chapter fifty-nine of this code, the publication area for such
publication to be the county wherein the work is to be performed or
which is affected by the contract, which notice shall state the
general character of the work and the general character of the
materials to be furnished, the place where plans and specifications
therefor may be examined and the time and place of receiving bids,
but a contract or lease for the operation of a water development
project constructed and owned by the authority or an agreement for
cooperation in the acquisition or construction of a water
development project pursuant to section sixteen of this article is
not subject to the foregoing requirements and the authority may
enter into such contract or lease or such agreement pursuant to
negotiation and upon such terms and conditions and for such period
as it finds to be reasonable and proper under the circumstances and
in the best interests of proper operation or of efficient
acquisition or construction of such project. The authority may
reject any and all bids. A bond with good and sufficient surety,
approved by the authority, is required of all contractors in an
amount equal to at least fifty percent of the contract price, conditioned upon the faithful performance of the contract.
(12) Employ managers, superintendents and other employees, who
are covered by the state civil service system, and retain or
contract with consulting engineers, financial consultants,
accounting experts, architects, attorneys and such other
consultants and independent contractors as are necessary in its
judgment to carry out the provisions of this article and fix the
compensation or fees thereof. All expenses thereof are payable
solely from the proceeds of water development revenue bonds or
notes issued by the authority, from revenues and from funds
appropriated for such purpose by the Legislature.
(13) Receive and accept from any federal agency, subject to
the approval of the Governor, grants for or in aid of the
construction of any water development project or for research and
development with respect to public water facilities, stormwater
systems or wastewater facilities and receive and accept aid or
contributions from any source of money, property, labor or other
things of value to be held, used and applied only for the purposes
for which such grants and contributions are made.
(14) Engage in research and development with respect to public
water facilities, stormwater systems or wastewater facilities.
(15) Purchase property coverage and liability insurance for
any water development project and for the principal office and
suboffices of the authority, insurance protecting the authority and its officers and employees against liability, if any, for damage to
property or injury to or death of persons arising from its
operations and any other insurance the authority may agree to
provide under any resolution authorizing the issuance of water
development revenue bonds or in any trust agreement securing the
same.
(16) Charge, alter and collect rentals and other charges for
the use or services of any water development project as provided in
this article and charge and collect reasonable interest, fees and
charges in connection with the making and servicing of loans to
governmental agencies in the furtherance of the purposes of this
article.
(17) Establish or increase reserves from moneys received or to
be received by the authority to secure or to pay the principal of
and interest on the bonds and notes issued by the authority
pursuant to this article.
(18) Administer on behalf of the Department of Environmental
Protection the Dam Safety Rehabilitation Revolving Fund Loan
Program pursuant to the provisions of article fourteen of chapter
twenty-two of this code. Revenues or moneys designated by this
code or otherwise appropriated for use by the authority pursuant to
the provisions of this article may not be used for the Dam Safety
Rehabilitation Revolving Fund Loan Program and moneys in the Dam
Safety Rehabilitation Revolving Fund shall be kept separate from all revenues and moneys of the authority.
(19) Do all acts necessary and proper to carry out the powers
expressly granted to the authority in this article.
§22C-1-27. Authorized limit on borrowing.
(a) The aggregate principal amount of bonds and notes issued
by the authority may not exceed §500 million outstanding at any one
time:
Provided, That before the authority issues bonds and notes in
excess of §400 million the Legislature must pass a resolution
authorizing this action:
Provided, however, That in computing the
total amount of bonds and notes which may at any one time be
outstanding, the principal amount of any outstanding bonds or notes
refunded or to be refunded either by application of the proceeds of
the sale of any refunding bonds or notes of the authority or by
exchange for any refunding bonds or notes, shall be excluded.
(b) In addition to the amounts authorized by subsection (a) of
this section, the authority may issue, pursuant to section
seventeen-b, article fifteen-a, chapter thirty-one of this code,
bonds or notes in the aggregate principal amount not to exceed $180
million. This authorization is for the limited purpose of
providing grants for capital improvements for public wastewater
treatment facilities with an authorized permitted flow of four
hundred thousand gallons per day or more which are required to
maintain compliance with nutrient standards for discharges to the
Chesapeake Bay Watershed.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State Excess Lottery Revenue Fund.
(a) The State Lottery Fund in the State Treasury which is
designated and known as the State Excess Lottery Revenue Fund is
continued. 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 under the provisions of sections ten-b and ten-c, article
twenty-two-a of this chapter and under article twenty-two-b of this
chapter, except the amounts due the commission under subdivision
(1), subsection (a), section one thousand four hundred eight,
article twenty-two-b of this chapter, shall be deposited in the
State Treasury and placed into the State Excess Lottery Revenue
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 State Auditor and the State Treasurer as part of
the general revenue of the state.
(b) For the fiscal year beginning July 1, 2002, the commission
shall deposit: (1) $65 million into the subaccount of the state
Excess Lottery Revenue Fund hereby created in the State Treasury to
be known as the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) $10 million into the
Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (e) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $20 million
into the School Building Debt Service Fund created in section six,
article nine-d, chapter eighteen of this code for the issuance of
revenue bonds; (5) $40 million into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $5 million
into the State Park Improvement Fund for Park Improvements. For
the fiscal year beginning July 1, 2003, the commission shall
deposit: (1) $65 million into the General Purpose Account to be
expended pursuant to appropriation of the Legislature; (2) $17
million into the Education Improvement Fund for appropriation by
the Legislature to the PROMISE Scholarship Fund created in section
seven, article seven, chapter eighteen-c of this code; (3) $19
million into the Economic Development Project Fund created in
subsection (e) of this section for the issuance of revenue bonds
and to be spent in accordance with the provisions of said
subsection; (4) $20 million into the School Building Debt Service
Fund created in section six, article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (5) $40 million into
the West Virginia Infrastructure Fund created in section nine,
article fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) $10 million
into the Higher Education Improvement Fund for Higher Education;
and (7) $7 million into the State Park Improvement Fund for Park
Improvements.
(c) For the fiscal year beginning July 1, 2004, and subsequent
fiscal years through the fiscal year ending June 30, 2009, the
commission shall deposit: (1) $65 million into the General Purpose
Account to be expended pursuant to appropriation of the
Legislature; (2) $27 million into the Education Improvement Fund
for appropriation by the Legislature to the PROMISE Scholarship
Fund created in section seven, article seven, chapter eighteen-c of
this code; (3) $19 million into the Economic Development Project
Fund created in subsection (e) of this section for the issuance of
revenue bonds and to be spent in accordance with the provisions of
said subsection; (4) $19 million into the School Building Debt
Service Fund created in section six, article nine-d, chapter
eighteen of this code for the issuance of revenue bonds:
Provided,
That for the fiscal year beginning July 1, 2008, and subsequent
fiscal years, no moneys shall be deposited in the School Building
Debt Service Fund pursuant to this subsection and instead $19
million shall be deposited into the Excess Lottery School Building Debt Service Fund; (5) $40 million into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $5 million
into the State Park Improvement Fund for Park Improvements. No
portion of the distributions made as provided in this subsection
and subsection (b) of this section, except distributions made in
connection with bonds issued under subsection (f) of this section,
may be used to pay debt service on bonded indebtedness until after
the Legislature expressly authorizes issuance of the bonds and
payment of debt service on the bonds through statutory enactment or
the adoption of a concurrent resolution by both houses of the
Legislature. Until subsequent legislative enactment or adoption of
a resolution that expressly authorizes issuance of the bonds and
payment of debt service on the bonds with funds distributed under
this subsection and subsection (b) of this section, except
distributions made in connection with bonds issued under subsection
(d) of this section, the distributions may be used only to fund
capital improvements that are not financed by bonds and only
pursuant to appropriation of the Legislature.
(d) For the fiscal year beginning July 1, 2009, and subsequent
fiscal years, the commission shall deposit: (1) $65 million into
the General Purpose Account to be expended pursuant to appropriation of the Legislature; (2) $29 million into the
Education Improvement Fund for appropriation by the Legislature to
the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (e) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $19 million
into the Excess Lottery School Building Debt Service Fund created
in section six, article nine-d, chapter eighteen of this code; (5)
$40 million into the West Virginia Infrastructure Fund created in
section nine, article fifteen-a, chapter thirty-one of this code to
be spent in accordance with the provisions of said article; (6) $10
million into the Higher Education Improvement Fund for Higher
Education; and (7) $5 million into the State Park Improvement Fund
for Park Improvements. No portion of the distributions made as
provided in this subsection and subsection (b) of this section,
except distributions made in connection with bonds issued under
subsection (f) of this section, may be used to pay debt service on
bonded indebtedness until after the Legislature expressly
authorizes issuance of the bonds and payment of debt service on the
bonds through statutory enactment or the adoption of a concurrent
resolution by both houses of the Legislature. Until subsequent
legislative enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service on the bonds with funds distributed under this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (f) of this section, the
distributions may be used only to fund capital improvements that
are not financed by bonds and only pursuant to appropriation of the
Legislature.
(e) For the fiscal year beginning July 1, 2011, and subsequent
fiscal years, the commission shall deposit: (1) $65 million into
the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) $29 million into the
Education Improvement Fund for appropriation by the Legislature to
the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (f) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of that subsection; (4) $19 million
into the Excess Lottery School Building Debt Service Fund created
in section six, article nine-d, chapter eighteen of this code; (5)
$46 million into the West Virginia Infrastructure Fund created in
section nine, article fifteen-a, chapter thirty-one of this code to
be spent in accordance with the provisions of that article; (6) $10
million into the Higher Education Improvement Fund for Higher
Education; and (7) $5 million into the State Park Improvement Fund
for Park Improvements. No portion of the distributions made as provided in this subsection and subsection (b) of this section,
except distributions made in connection with bonds issued under
subsection (f) of this section, may be used to pay debt service on
bonded indebtedness until after the Legislature expressly
authorizes issuance of the bonds and payment of debt service on the
bonds through statutory enactment or the adoption of a concurrent
resolution by both houses of the Legislature. Until subsequent
legislative enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service on the
bonds with funds distributed under this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (f) of this section, the
distributions may be used only to fund capital improvements that
are not financed by bonds and only pursuant to appropriation of the
Legislature.
(e) (f) The Legislature finds and declares that in order to
attract new business, commerce and industry to this state, to
retain existing business and industry providing the citizens of
this state with economic security and to advance the business
prosperity of this state and the economic welfare of the citizens
of this state, it is necessary to provide public financial support
for constructing, equipping, improving and maintaining economic
development projects, capital improvement projects and
infrastructure which promote economic development in this state.
(1) The West Virginia Economic Development Authority created
and provided
for in article fifteen, chapter thirty-one of this
code shall, by resolution, in accordance with the provisions of
this article and article fifteen, chapter thirty-one of this code,
and upon direction of the Governor, issue revenue bonds of the
Economic Development Authority in no more than two series to pay
for all or a portion of the cost of constructing, equipping,
improving or maintaining projects under this section or to refund
the bonds at the discretion of the authority. Any revenue bonds
issued on or after July 1, 2002, which are secured by state excess
lottery revenue 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 special fund provided in this
section for the payment.
(2) The special revenue fund named the Economic Development
Project Fund into which
shall be is deposited the amounts to be
deposited in the fund as specified in subsections (b), (c),
(d) and
(d) (e) of this section is continued. The Economic Development
Project Fund shall consist of all such moneys, all appropriations
to the fund, all interest earned from investment of the fund and
any gifts, grants or contributions received by the fund. 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, including any and all commercially customary and
reasonable costs and expenses which may be incurred in connection
with the issuance, refunding, redemption or defeasance of the
bonds. The West Virginia Economic Development Authority may
further provide in the resolution and in the trust agreement for
priorities on the revenues paid into the Economic Development
Project Fund that are necessary for the protection of the prior
rights of the holders of bonds issued at different times under the
provisions of this section. The bonds issued pursuant to this
subsection shall be separate from all other bonds which may be or
have been issued, from time to time, under the provisions of this
article.
(3) After the West Virginia Economic Development Authority has
issued bonds authorized by this section and after the requirements
of all funds have been satisfied, including any coverage and
reserve funds established in connection with the bonds issued
pursuant to this subsection, any balance remaining in the Economic
Development Project Fund may be used for the redemption of any of
the outstanding bonds issued under this subsection 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.
(4) Bonds issued under this subsection shall state on their
face that the bonds do not constitute a debt of the State of West
Virginia; that payment of the bonds, interest and charges thereon
cannot become an obligation of the State of West Virginia; and that
the bondholders' remedies are limited in all respects to the
Special Revenue Fund established in this subsection for the
liquidation of the bonds.
(5) The West Virginia Economic Development Authority shall
expend the bond proceeds from the revenue bond issues authorized
and directed by this section for projects certified under the
provision of this subsection:
Provided, That the bond proceeds
shall be expended in accordance with the requirements and
provisions of article five-a, chapter twenty-one of this code and
either article twenty-two or twenty-two-a, chapter five of this
code, as the case may be:
Provided, however, That if the bond
proceeds are expended pursuant to article twenty-two-a, chapter
five of this code and if the Design-Build Board created under said
article determines that the execution of a design-build contract in
connection with a project is appropriate pursuant to the criteria
set forth in said article and that a competitive bidding process
was used in selecting the design builder and awarding the contract,
the determination shall be conclusive for all purposes and shall be
considered to satisfy all the requirements of said article.
(6) For the purpose of certifying the projects that will receive funds from the bond proceeds, a committee is hereby
established and comprised of the Governor, or his or her designee,
the Secretary of the Department of Revenue, the Executive Director
of the West Virginia Development Office and six persons appointed
by the Governor:
Provided, That at least one citizen member must
be from each of the state's three congressional districts. The
committee shall meet as often as necessary and make certifications
from bond proceeds in accordance with this subsection. The
committee shall meet within thirty days of the effective date of
this section.
(7) Applications for grants submitted on or before July 1,
2002, shall be considered refiled with the committee. Within ten
days from the effective date of this section as amended in the year
2003, the lead applicant shall file with the committee any
amendments to the original application that may be necessary to
properly reflect changes in facts and circumstances since the
application was originally filed with the committee.
(8) When determining whether or not to certify a project, the
committee shall take into consideration the following:
(A) The ability of the project to leverage other sources of
funding;
(B) Whether funding for the amount requested in the grant
application is or reasonably should be available from commercial
sources;
(C) The ability of the project to create or retain jobs,
considering the number of jobs, the type of jobs, whether benefits
are or will be paid, the type of benefits involved and the
compensation reasonably anticipated to be paid persons filling new
jobs or the compensation currently paid to persons whose jobs would
be retained;
(D) Whether the project will promote economic development in
the region and the type of economic development that will be
promoted;
(E) The type of capital investments to be made with bond
proceeds and the useful life of the capital investments; and
(F) Whether the project is in the best interest of the public.
(9) A grant may not be awarded to an individual or other
private person or entity. Grants may be awarded only to an agency,
instrumentality or political subdivision of this state or to an
agency or instrumentality of a political subdivision of this state.
The project of an individual or private person or entity may be
certified to receive a low-interest loan paid from bond proceeds.
The terms and conditions of the loan, including, but not limited
to, the rate of interest to be paid and the period of the
repayment, shall be determined by the Economic Development
Authority after considering all applicable facts and circumstances.
(10) Prior to making each certification, the committee shall
conduct at least one public hearing, which may be held outside of Kanawha County. Notice of the time, place, date and purpose of the
hearing shall be published in at least one newspaper in each of the
three congressional districts at least fourteen days prior to the
date of the public hearing.
(11) The committee may not certify a project unless the
committee finds that the project is in the public interest and the
grant will be used for a public purpose. For purposes of this
subsection, projects in the public interest and for a public
purpose include, but are not limited to:
(A) Sports arenas, fields, parks, stadiums and other sports
and sports-related facilities;
(B) Health clinics and other health facilities;
(C) Traditional infrastructure, such as water and wastewater
treatment facilities, pumping facilities and transmission lines;
(D) State-of-the-art telecommunications infrastructure;
(E) Biotechnical incubators, development centers and
facilities;
(F) Industrial parks, including construction of roads, sewer,
water, lighting and other facilities;
(G) Improvements at state parks, such as construction,
expansion or extensive renovation of lodges, cabins, conference
facilities and restaurants;
(H) Railroad bridges, switches and track extension or spurs on
public or private land necessary to retain existing businesses or attract new businesses;
(I) Recreational facilities, such as amphitheaters, walking
and hiking trails, bike trails, picnic facilities, restrooms, boat
docking and fishing piers, basketball and tennis courts, and
baseball, football and soccer fields;
(J) State-owned buildings that are registered on the National
Register of Historic Places;
(K) Retail facilities, including related service, parking and
transportation facilities, appropriate lighting, landscaping and
security systems to revitalize decaying downtown areas; and
(L) Other facilities that promote or enhance economic
development, educational opportunities or tourism opportunities
thereby promoting the general welfare of this state and its
residents.
(12) Prior to the issuance of bonds under this subsection, the
committee shall certify to the Economic Development Authority a
list of those certified projects that will receive funds from the
proceeds of the bonds. Once certified, the list may not thereafter
be altered or amended other than by legislative enactment.
(13) If any proceeds from sale of bonds remain after paying
costs and making grants and loans as provided in this subsection,
the surplus may be deposited in an account in the State Treasury
known as the Economic Development Project Bridge Loan Fund
administered by the Economic Development Authority created in article fifteen, chapter thirty-one of this code. Expenditures
from the fund are not authorized from collections but are to be
made only in accordance with appropriation by the Legislature and
in accordance with the provisions of article three, chapter twelve
of this code and upon fulfillment of the provisions of article two,
chapter five-a of this code. Loan repayment amounts, including the
portion attributable to interest, shall be paid into the fund
created in this subdivision.
(f) (g) If the commission receives revenues in an amount that
is not sufficient to fully comply with the requirements of
subsections (b), (c), (d),
(e) and
(i) (j) of this section, the
commission shall first make the distribution to the Economic
Development Project Fund; second, make the distribution or
distributions to the other funds from which debt service is to be
paid; third, make the distribution to the Education Improvement
Fund for appropriation by the Legislature to the PROMISE
Scholarship Fund;
fourth, make the distribution to the West
Virginia Infrastructure Fund; and
fourth fifth, make the
distribution to the General Purpose Account:
Provided, That,
subject to the provisions of this subsection, to the extent the
revenues are not pledged in support of revenue bonds which are or
may be issued, from time to time, under this section, the revenues
shall be distributed on a pro rata basis.
(g) (h) Each fiscal year, the commission shall, after meeting the requirements of subsections (b), (c), (d),
(e) and
(i) (j) of
this section and after transferring to the State Lottery Fund
created under section eighteen of this article an amount equal to
any transfer from the State Lottery Fund to the Excess Lottery Fund
pursuant to subsection
(f) (g), section eighteen of this article,
deposit fifty percent of the amount by which annual gross revenue
deposited in the State Excess Lottery Revenue Fund exceeds $225
million in a fiscal year in a separate account in the State Lottery
Fund to be available for appropriation by the Legislature.
(h) (i) When bonds are issued for projects under subsection
(d) (e) (f) of this section or for the School Building Authority,
infrastructure, higher education or park improvement purposes
described in this section that are secured by profits from
lotteries deposited in the State Excess Lottery Revenue Fund, the
Lottery Director shall allocate first to the Economic Development
Project Fund an amount equal to one tenth of the projected annual
principal, interest and coverage requirements on any and all
revenue bonds issued, or to be issued as certified to the Lottery
Director; and second, to the fund or funds from which debt service
is paid on bonds issued under this section for the School Building
Authority, infrastructure, higher education and park improvements
an amount equal to one tenth of the projected annual principal,
interest and coverage requirements on any and all revenue bonds
issued, or to be issued as certified to the Lottery Director. In the event there are insufficient funds available in any month to
transfer the amounts required pursuant to this subsection, the
deficiency shall be added to the amount transferred in the next
succeeding month in which revenues are available to transfer the
deficiency.
(i) (j) Prior to the distributions provided in subsection
(d)
(e) of this section, the Lottery Commission shall deposit into the
General Revenue Fund amounts necessary to provide reimbursement for
the refundable credit allowable under section twenty-one, article
twenty-one, chapter eleven of this code.
(j) (k) (1) The Legislature considers the following as
priorities in the expenditure of any surplus revenue funds:
(A) Providing salary and/or increment increases for
professional educators and public employees;
(B) Providing adequate funding for the Public Employees
Insurance Agency; and
(C) Providing funding to help address the shortage of
qualified teachers and substitutes in areas of need, both in number
of teachers and in subject matter areas.
(2) The provisions of this subsection may not be construed by
any court to require any appropriation or any specific
appropriation or level of funding for the purposes set forth in
this subsection.
(k) (l) The Legislature further directs the Governor to focus resources on the creation of a prescription drug program for senior
citizens by pursuing a Medicaid waiver to offer prescription drug
services to senior citizens; by investigating the establishment of
purchasing agreements with other entities to reduce costs; by
providing discount prices or rebate programs for seniors; by
coordinating programs offered by pharmaceutical manufacturers that
provide reduced cost or free drugs; by coordinating a collaborative
effort among all state agencies to ensure the most efficient and
cost-effective program possible for the senior citizens of this
state; and by working closely with the state's congressional
delegation to ensure that a national program is implemented. The
Legislature further directs that the Governor report his or her
progress back to the Joint Committee on Government and Finance on
an annual basis until a comprehensive program has been fully
implemented.
(l) (m) After all of the expenditures in subsections (a)
through
(i) (j) of this section have been satisfied in any fiscal
year, the next $2 million shall be distributed as follows:
(1) On the last day of the fiscal year that begins on July 1,
2010, and for each fiscal year thereafter, forty-six percent shall
be placed in the general purse fund of a thoroughbred racetrack
licensee that did not participate in the Thoroughbred Development
Fund for at least four consecutive calendar years prior to December
31, 1992, for payment of regular purses;
(2) Forty-three and one half percent shall be distributed to
the racing commission special account - unredeemed pari-mutual
tickets established on behalf of a thoroughbred racetrack licensee
that did participate in the Thoroughbred Development Fund for at
least four consecutive calendar years prior to December 31, 1992;
(3) Five and one half percent shall be distributed to the
racing commission special account - unredeemed pari-mutuel tickets
established on behalf of a thoroughbred racetrack licensee that did
not participate in the Thoroughbred Development Fund for at least
four consecutive calendar years prior to December 31, 1992; and
(4) Five percent shall be distributed to the West Virginia
racing commission special account - Greyhound Breeding Development
Fund.
CHAPTER 31. CORPORATIONS.
ARTICLE 15A. WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT
COUNCIL.
§31-15A-9. Infrastructure fund; deposits in fund; disbursements
to provide loans, loan guarantees, grants and
other assistance; loans, loan guarantees, grants
and other assistance shall be subject to
assistance agreements.
(a) The Water Development Authority shall create and
establish a special revolving fund of moneys made available by
appropriation, grant, contribution or loan to be known as the "West Virginia Infrastructure Fund". This fund shall be governed,
administered and accounted for by the directors, officers and
managerial staff of the Water Development Authority as a special
purpose account separate and distinct from any other moneys, funds
or funds owned and managed by the Water Development Authority. The
infrastructure fund shall consist of sub-accounts, as deemed
necessary by the council or the Water Development Authority, for
the deposit of: (1) Infrastructure revenues; (2) any
appropriations, grants, gifts, contributions, loan proceeds or
other revenues received by the infrastructure fund from any source,
public or private,
except for the first $6 million deposited
pursuant to section eighteen-a, article twenty-two, chapter twenty-
nine of this code; (3) amounts received as payments on any loans
made by the Water Development Authority to pay for the cost of a
project or infrastructure project; (4) insurance proceeds payable
to the Water Development Authority or the infrastructure fund in
connection with any infrastructure project or project; (5) all
income earned on moneys held in the infrastructure fund; (6) all
funds deposited in accordance with section four of article fifteen-
b; and (7) all proceeds derived from the sale of bonds issued
pursuant to article fifteen-b of this chapter.
Any money collected pursuant to this section shall be paid
into the West Virginia infrastructure fund by the state agent or
entity charged with the collection of the same, credited to the infrastructure fund, and used only for purposes set forth in this
article or article fifteen-b.
Amounts in the infrastructure fund shall be segregated and
administered by the water development authority separate and apart
from its other assets and programs. Amounts in the infrastructure
fund may not be transferred to any other fund or account or used,
other than indirectly, for the purposes of any other program of the
Water Development Authority, except that the Water Development
Authority may use funds in the infrastructure fund to reimburse
itself for any administrative costs incurred by it and approved by
the council in connection with any loan, loan guarantee, grant or
other funding assistance made by the Water Development Authority
pursuant to this article.
(b) Notwithstanding any provision of this code to the contrary,
amounts in the infrastructure fund shall be deposited by the Water
Development Authority in one or more banking institutions:
Provided,
That any moneys so deposited shall be deposited in a banking
institution located in this state. The banking institution shall be
selected by the Water Development Authority by competitive bid.
Pending the disbursement of any money from the infrastructure fund
as authorized under this section, the Water Development Authority
shall invest and reinvest the moneys subject to the limitations set
forth in article eighteen, chapter thirty-one of this code.
(c) To further accomplish the purposes and intent of this article and article fifteen-b of this chapter, the Water Development
Authority may pledge infrastructure revenues and from time to time
establish one or more restricted accounts within the infrastructure
fund for the purpose of providing funds to guarantee loans for
infrastructure projects or projects:
Provided, That for any fiscal
year the Water Development Authority may not deposit into the
restricted accounts more than twenty percent of the aggregate amount
of infrastructure revenues deposited into the infrastructure fund
during the fiscal year. No loan guarantee shall be made pursuant to
this article unless recourse under the loan guarantee is limited
solely to amounts in the restricted account or accounts. No person
shall have any recourse to any restricted accounts established
pursuant to this subsection other than those persons to whom the
loan guarantee or guarantees have been made.
(d) Each loan, loan guarantee, grant or other assistance made
or provided by the Water Development Authority shall be evidenced
by a loan, loan guarantee, grant or assistance agreement between the
Water Development Authority and the project sponsor to which the
loan, loan guarantee, grant or assistance shall be made or provided,
which agreement shall include, without limitation and to the extent
applicable, the following provisions:
(1) The estimated cost of the infrastructure project or
project, the amount of the loan, loan guarantee or grant or the
nature of the assistance, and in the case of a loan or loan guarantee, the terms of repayment and the security therefor, if any;
(2) The specific purposes for which the loan or grant proceed
shall be expended or the benefits to accrue from the loan guarantee
or other assistance, and the conditions and procedure for disbursing
loan or grant proceeds;
(3) The duties and obligations imposed regarding the
acquisition, construction, improvement or operation of the project
or infrastructure project; and
(4) The agreement of the governmental agency to comply with all
applicable federal and state laws, and all rules and regulations
issued or imposed by the Water Development Authority or other state,
federal or local bodies regarding the acquisition, construction,
improvement or operation of the infrastructure project or project
and granting the Water Development Authority the right to appoint
a receiver for the project or infrastructure if the project
sponsor should default on any terms of the agreement.
(e) Any resolution of the Water Development Authority approving
loan, loan guarantee, grant or other assistance shall include a
finding and determination that the requirements of this section have
been met.
(f) The interest rate on any loan to governmental, quasi-
governmental, or not for profit project sponsors for projects made
pursuant to this article shall not exceed three percent per annum.
Due to the limited availability of funds available for loans for projects, it is the public policy of this state to prioritize
funding needs to first meet the needs of governmental, quasi-
governmental and not for profit project sponsors and to require that
loans made to for-profit entities shall bear interest at the current
market rates. Therefore, no loan may be made by the council to a
for-profit entity at an interest rate which is less than the current
market rate at the time of the loan agreement.
(g) The Water Development Authority shall cause an annual audit
to be made by an independent certified public accountant of its
books, accounts and records, with respect to the receipts,
disbursements, contracts, leases, assignments, loans, grants and all
other matters relating to the financial operation of the
infrastructure fund, including the operating of any sub-account
within the infrastructure fund. The person performing such audit
shall furnish copies of the audit report to the commissioner of
finance and administration, where they shall be placed on file and
made available for inspection by the general public. The person
performing such audit shall also furnish copies of the audit report
to the Legislature's Joint Committee on Government and Finance.
(h) There is hereby created in the Water Development Authority
a separate, special account which shall be designated and known as
the "West Virginia Infrastructure Lottery Revenue Debt Service
Fund," into which shall be deposited annually commencing July 1,
2011, the first $6 million transferred pursuant to section eighteen-a, article twenty-two, chapter twenty-nine of this code, any
assessments collected pursuant to section five, article one, chapter
twenty-two-c of this code and any other funds provided therefor:
Provided, That such deposits and transfers are not subject to the
reservations of funds established by sections ten and eleven of this
article. Moneys in the West Virginia Infrastructure Lottery Revenue
Debt Service Fund shall be used to pay debt service on bonds or
notes issued by the Water Development Authority for Chesapeake Bay
projects as provided in section seventeen-b of this article, and to
the extent not needed to pay debt service, for the design of
improvements for Chesapeake Bay projects.
§31-15A-17b. Infrastructure lottery revenue bonds for Chesapeake
Bay watershed projects.
(a) The Chesapeake Bay has been identified as an impaired
water body due to excessive nutrients entering the Bay from various
sources in six states, including wastewater facilities in West
Virginia. To restore the Chesapeake Bay, the states have agreed to
reduce their respective nutrient contributions to the Chesapeake
Bay.
(b) Notwithstanding any other provision of this code to the
contrary, the Water Development Authority may issue, in accordance
with the provisions of section seventeen of this article,
infrastructure lottery revenue bonds payable from the West Virginia
Infrastructure Lottery Revenue Debt Service Fund created by section nine of this article and such other sources as may be legally
pledged for such purposes other than the West Virginia
Infrastructure Revenue Debt Service Fund created by section
seventeen of this article.
(c) The council shall direct the Water Development Authority
to issue bonds when it has approved Chesapeake Bay projects with an
authorized permitted flow of four hundred thousand gallons per day
or more. The proceeds of the bonds shall be used solely to pay
costs of issuance, fund a debt service reserve account and to make
grants to approved project sponsors for Chesapeake Bay projects.
To the extent funds are available in the West Virginia
Infrastructure Lottery Revenue Debt Service Fund that are not needed
for debt service, the council may direct the water development
authority to make grants to project sponsors for the design of
approved Chesapeake Bay projects.
NOTE: The purpose of this bill is to establish a program to
provide financial assistance to wastewater treatment facilities in
the Chesapeake Bay Watershed that are required to install expensive
technology in order to meet stringent nutrient standards imposed by
the U.S. Environmental Protection Agency..
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§31-15A-17b is new; therefore, it has been completely
underscored.
This bill was recommended for introduction and passage during
the Regular Session of the Legislature by the Joint Judiciary
Committee.