COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 362

(By Senators Snyder, Plymale, Unger, Stollings, Kirkendoll, Helmick, Jenkins, Laird, Barnes, Beach, Edgell and D. Facemire)

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[Originating in the Committee on Natural Resources;

reported February 2, 2012.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §29-22-18e; to amend and reenact §31-15-16a of said code; and to amend said code by adding thereto a new section, designated §31-15-16b, all relating to authorizing the issuance of $52.5 million in bonds for capital improvements for Cacapon Resort State Park and Beech Fork State Park beginning in fiscal year 2013; providing that the debt service on the bonds is payable from an additional $3 million allocation to the State Park Improvement Fund from the State Excess Lottery Revenue Fund; and providing that the Economic Development Authority may issue the bonds.

Be it enacted by the Legislature of West Virginia:

    That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §29-22-18e; that §31-15-16a of said code be amended and reenacted; and that said code be amended by adding thereto a new section, designated §31-15-16b, all to read as follows:

CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 22. STATE LOTTERY ACT.

§29-22-18e. Increase in allocation to State Park Improvement Fund from State Excess Lottery Revenue Fund to permit the issuance of bonds for improvements to Cacapon Resort State Park and Beech Fork State Park.

    Notwithstanding any provision of subsection (d), section eighteen-a of this article to the contrary, $5 million shall be deposited into the State Park Improvement Fund from the State Excess Lottery Revenue Fund for the fiscal year beginning July 1, 2012, only. For the fiscal year beginning July 1, 2013, and subsequent fiscal years, the commission shall deposit $8 million into the State Park Improvement Fund, of which $3 million is dedicated to pay the debt service for bonds for improvements to Cacapon Resort State Park and Beech Fork State Park authorized by section sixteen-b, article fifteen, chapter thirty-one of this code.

CHAPTER 31. CORPORATIONS.

ARTICLE 15. WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY.

§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, an amount that, in the opinion of the authority, is necessary to provide sufficient funds for achievement of the purposes of this section and is within the limits of moneys pledged for the repayment of the principal, interest and redemption premium, if any, on any revenue bonds or refunding bonds authorized by this section. 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 of this code 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 capital improvement projects 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 that will receive funds from the proceeds of bonds issued pursuant to this section.

    At any time prior to the issuance of bonds under this section, the Governor may certify to the authority a revised list of capital improvement projects at state institutions of higher education that will receive funds from the proceeds of bonds issued pursuant to this section. The Governor shall consult with the Higher Education Policy Commission prior to certifying a revised list of capital improvement projects to the authority.

    (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.

    (1) A committee comprised of 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 capital improvement projects 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 that will receive funds from the proceeds of bonds issued pursuant to this section.     (2) At any time prior to the issuance of bonds under this section, the Governor may certify to the authority a revised list of capital improvement projects at state parks, the State Capitol Complex, other state facilities or tourism sites that will receive funds from the proceeds of bonds issued pursuant to this section. The Governor shall consult with the committee established by this subsection prior to certifying a revised list of capital improvement projects to the authority.

    (d) In addition to the amounts authorized by subsection (a) of this section, the authority may issue, pursuant to section sixteen-b, article fifteen of this chapter, bonds or notes in the aggregate principal amount not to exceed $52.5 million. This authorization is for the limited purpose of providing grants for capital improvements for Cacapon Resort State Park and Beech Fork State Park.

§31-15-16b. Lottery revenue bonds for Cacapon Resort State Park                and Beech Fork State Park.

    (a) Notwithstanding any other provision of this code to the contrary, the Economic Development Authority may issue, in accordance with section sixteen-a, article fifteen of this chapter, lottery revenue bonds in the amount of $52.5 million. The debt service of the bonds shall be payable from the State Park Improvement Fund, established in subsection (d), section eighteen-a, article twenty-two, chapter twenty-nine of this code and such other sources as may be legally pledged for such purposes.

    (b) The proceeds of the bonds shall be used solely to pay costs of issuance, fund a debt service reserve account, capitalize interest, pay for security instruments necessary to market the bonds and to make grants for capital improvements to the Cacapon Resort State Park and Beech Fork State Park.

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    (NOTE: The purpose of this bill is to authorize the issuance of $52.5 million in bonds for capital improvements for Cacapon Resort State Park and Beech Fork State Park. The bill provides that the debt service on the bonds is payable from an additional $3 million allocation to the State Park Improvement Fund, and that the Economic Development Authority may issue the bonds.

    §29-22-18e and §31-15-16b are new; therefore, strike-throughs and underscoring have been omitted.

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