H. B. 2021
(By Mr. Speaker, Mr. Kiss [By Request]
[Introduced February 12, 1997; referred to the
Committee on Finance.]
A BILL to amend and reenact section eighteen, article twenty-two,
chapter twenty-nine of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
establishing a maintenance fund for parks and recreation.
Be it enacted by the Legislature of West Virginia:
That section eighteen, article twenty-two, chapter
twenty-nine of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted to read
as follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18. State lottery fund; appropriations and deposits; not
part of general revenue; no transfer of state funds after initial appropriation; use and repayment of initial appropriation; allocation of fund for prizes, net profit and expenses; surplus;
state lottery education fund; state lottery senior
citizens fund; allocation and appropriation of net
profits.
(a) There is hereby continued a special revenue fund in the
state treasury which shall be designated and known as the "state
lottery fund". The fund shall consist of all appropriations to
the fund and all interest earned from investment of the fund and
any gifts, grants or contributions received by the fund. All
revenues received from the sale of lottery tickets, materials and
games shall be deposited with the state treasurer and placed into
the "state lottery fund". The revenue shall be disbursed in the
manner provided in this section for the purposes stated in this
section and shall may not be treated by the auditor and treasurer
as part of the general revenue of the state.
(b) No appropriation, loan or other transfer of state funds
may be made to the commission or lottery fund after the initial
appropriation.
(c) A minimum annual average of forty-five percent of the
gross amount received from each lottery shall be allocated and
disbursed as prizes.
(d) Not more than fifteen percent of the gross amount
received from each lottery shall be allocated to and may be
disbursed as necessary for fund operation and administration expenses.
(e) The excess of the aggregate of the gross amount
received from all lotteries over the sum of the amounts allocated
by subsections (c) and (d) of this section shall be allocated as
net profit. In the event that the percentage allotted for
operations and administration generates a surplus, the surplus
shall be allowed to accumulate to an amount not to exceed two
hundred fifty thousand dollars. On a monthly basis, the director
shall report to the joint committee on government and finance of
the Legislature any surplus in excess of two hundred fifty
thousand dollars and remit to the state treasurer the entire
amount of those surplus funds in excess of two hundred fifty
thousand dollars which shall be allocated as net profit.
(f) After first satisfying the requirements for funds
dedicated to the school building debt service fund in subsection
(h) of this section to retire the ten-year bonds authorized to be
issued pursuant to section eight, article nine-d, chapter
eighteen of this code, and then satisfying the requirements for
funds dedicated to the education, arts, sciences and tourism debt
service fund in subsection (i) of this section to retire the
bonds authorized to be issued pursuant to section eleven-a,
article six, chapter five of this code, the Legislature shall
annually appropriate all of the remaining amounts allocated as
net profits in subsection (e) of this section, in such proportions as it considers beneficial to the citizens of this
state, to: (1) The lottery education fund created in subsection
(g) of this section; (2) the school construction fund created in
section six, article nine-d, chapter eighteen of this code; (3)
the lottery senior citizens fund created in subsection (j) of
this section; and (4) the division of natural resources created
in section four, article five, chapter twenty of this code and
the West Virginia development office as created in section one,
article two, chapter five-b of this code, in accordance with
subsection (k) of this section. No transfer to any account other
than the school building debt service account and the education,
arts, sciences and tourism debt service fund may be made in any
period of time in which a default exists in respect to debt
service on bonds issued by the school building authority and the
state building commission which are secured by lottery proceeds.
No additional transfer shall be made to any account other than
the school building debt service account and the education, arts,
sciences and tourism debt service fund when net profits for the
preceding twelve months are not at least equal to one hundred
fifty percent of debt service on bonds issued by the school
building authority and the state building commission which are
secured by net profits.
Notwithstanding any other provision of law to the contrary,
any increase in net profits over the net profits of the fiscal year of one thousand nine hundred ninety-six--ninety-seven, shall
be allocated to the parks and recreation section of the division
of natural resources in accordance with subsection (l) of this
section, in an amount not to exceed one million dollars per year
for five years.
(g) There is hereby continued a special revenue fund in the
state treasury which shall be designated and known as the
"lottery education fund". The fund shall consist of the amounts
allocated pursuant to subsection (f) of this section, which shall
be deposited into the lottery education fund by the state
treasurer. The lottery education fund shall also consist of all
interest earned from investment of the lottery education fund and
any other appropriations, gifts, grants, contributions or moneys
received by the lottery education fund from any source. The
revenues received or earned by the lottery education fund shall
be disbursed in the manner provided below and shall 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 such the educational programs as it considers beneficial to
the citizens of this state.
(h) On or before the twenty-eighth day of each month
through the twentieth day of June, two thousand five, the lottery director shall allocate to the school building debt service fund
created pursuant to the provisions of section six, article
nine-d, chapter eighteen of this code, as a first priority from
the net profits of the lottery for the preceding month, an amount
equal to one tenth of the projected annual principal, interest
and coverage ratio requirements on any and all revenue bonds and
refunding bonds issued, or to be issued, on or after the first
day of April, one thousand nine hundred ninety-four, as certified
to the lottery director in accordance with the provisions of
section six, article nine-d, chapter eighteen of this code. In no
event shall the monthly amount allocated exceed one million eight
hundred thousand dollars, nor shall the total allocation of the
net profits to be paid into the school building debt service
fund, as provided in this section, in any fiscal year exceed the
lesser of the principal and interest requirements certified to
the lottery director or eighteen million dollars. In the event
there are insufficient funds available in any month to transfer
the amount required to be transferred pursuant to this subsection
to the school debt service fund, the deficiency shall be added to
the amount transferred in the next succeeding month in which
revenues are available to transfer the deficiency. A lien on the
proceeds of the state lottery fund up to a maximum amount equal
to the projected annual principal, interest and coverage ratio
requirements, not to exceed twenty-seven million dollars annually, may be granted by the school building authority in
favor of the bonds it issues which are secured by the net lottery
profits.
(i) Beginning on or before the twenty-eighth day of July,
one thousand nine hundred ninety-six, and continuing on or before
the twenty-eighth day of each succeeding month thereafter through
the twenty-eighth day of June, two thousand twenty-one, the
lottery director shall allocate to the education, arts, sciences
and tourism debt service fund created pursuant to the provisions
of section eleven-a, article six, chapter five of this code, as
a second priority from the net profits of the lottery for the
preceding month, an amount equal to one tenth of the projected
annual principal, interest and coverage ratio requirements on any
and all revenue bonds and refunding bonds issued, or to be
issued, on or after the first day of April, one thousand nine
hundred ninety-six, as certified to the lottery director in
accordance with the provisions of that section. In no event
shall the monthly amount allocated exceed one million dollars nor
shall the total allocation paid into the education, arts,
sciences and tourism debt service fund, as provided in this
section, in any fiscal year exceed the lesser of the principal
and interest requirements certified to the lottery director or
ten million dollars.
In the event there are insufficient funds available in any month to transfer the amount required pursuant to this subsection
to the education, arts, sciences and tourism debt service fund,
the deficiency shall be added to the amount transferred in the
next succeeding month in which revenues are available to transfer
the deficiency. A second-in-priority lien on the proceeds of the
state lottery fund up to a maximum amount equal to the projected
annual principal, interest and coverage ratio requirements, not
to exceed fifteen million dollars annually, may be granted by the
state building commission in favor of the bonds it issues which
are secured by the net lottery profits.
(j) There is hereby continued a special revenue fund in the
state treasury which shall be designated and known as the
"lottery senior citizens fund". The fund shall consist of the
amounts allocated pursuant to subsection (f) of this section,
which shall be deposited into the lottery senior citizens fund by
the state treasurer. The lottery senior citizens fund shall also
consist of all interest earned from investment of the lottery
senior citizens fund and any other appropriations, gifts, grants,
contributions or moneys received by the lottery senior citizens
fund from any source. The revenues received or earned by the
lottery senior citizens fund shall be disbursed in the manner
provided below and shall 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 such the senior citizens
medical care and other programs as it considers beneficial to the
citizens of this state.
(k) The division of natural resources and the West Virginia
development office, as appropriated by the Legislature, may use
the amounts allocated to it 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.
(l) The parks and recreation section of the division of
natural resources shall deposit the funds derived from the growth
in net profit received in accordance with subsection (f) of this
section in a special fund to be named the parks and recreation maintenance fund. Amounts withdrawn from the parks and
recreation maintenance fund shall only be used for the purpose
of maintenance of parks and recreation facilities and equipment.
NOTE: The purpose of this bill is to establish a parks and
recreation maintenance fund.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.