COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 533
(By Senators Tomblin (Mr. President) and Buckalew
By Request of the Executive)
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[Originating in the Committee on Finance;
reported February 25, 1998.]
_________
A BILL to amend and reenact section thirty, article fifteen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to amend and reenact
section ten, article nine-a, chapter eighteen of said code;
and to amend and reenact section eighteen, article twenty- two, chapter twenty-nine of said code, all relating to a
funding plan for continuing public school construction;
deleting out-dated language; continuing monthly state sales
tax payments into the school major improvement fund by
eliminating the termination date for such payments;
continuing monthly state sales tax payments into the school
construction fund by eliminating the termination date for
such payments; providing for the payment of the annual
difference between the allocation made in the one thousand
nine hundred ninety-seven fiscal year and the amount of
funds required for debt service on school improvement bonds under the better school building amendment for any
succeeding current year to be deposited into the school
construction fund; providing that, upon retirement of school
construction bonds secured through allocations from the
school building capital improvements fund, certain moneys
allocated for that purpose are to be deposited into the
school construction fund; and providing that upon the
retirement of the school improvement bonds secured by
profits from the lottery and deposited in the school debt
service fund an annual amount of eighteen million dollars of
such funds shall be deposited into the school construction
fund.
Be it enacted by the Legislature of West Virginia:
That section thirty, article fifteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that section ten, article
nine-a, chapter eighteen of said code be amended and reenacted;
and that section eighteen, article twenty-two, chapter
twenty-nine of said code be amended and reenacted, all to read as
follows:
CHAPTER 11. TAXATION.
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-30. Proceeds of tax; appropriation of certain revenues.
(a) The proceeds of the tax imposed by this article shall be
deposited in the general revenue fund of the state
beginning the first day of July, one thousand nine hundred ninety-four, except
as otherwise expressly provided in this article.
Prior to the
said first day of July, the proceeds of this tax shall, except
as otherwise expressly provided in this article, be deposited as
provided in chapter three, acts of the Legislature, second
extraordinary session, one thousand nine hundred ninety-three,
and, for such purpose, such prior law is fully preserved. On the
said first day of July, the balance in "WVFIMS" account number
fund 6676, fiscal year one thousand nine hundred ninety-four,
organization 0615, shall be transferred to the general revenue
fund. On the said first day of July, the balance in "WVFIMS"
account number fund 3962, fiscal year one thousand nine hundred
ninety-four, organization 0402, shall be transferred to the
school construction fund created pursuant to section six, article
nine-d, chapter eighteen of this code.
(b)
School major improvement fund. --
After the payment or commitment of the proceeds or
collections of this tax for the purposes set forth in sections
sixteen and eighteen of this article,
(1) On the first day of July, one thousand nine hundred
ninety-four, there shall be dedicated from the collections of
this tax, an amount appropriated by the Legislature to this fund
in the general revenue budget for the fiscal year beginning on
the first day of July, one thousand nine hundred ninety-four,
and the amount dedicated shall be deposited into the school major improvement fund created pursuant to section six, article nine-d,
chapter eighteen of this code, as soon as such amount has been
accumulated from the collections of this tax.
(2) Beginning on the first day of July, one thousand nine
hundred ninety-five, and continuing on the first day of each
succeeding month
thereafter,
through the thirtieth day of June,
two thousand five, there shall be dedicated monthly from the
collections of this tax, the amount of four hundred sixteen
thousand six hundred sixty-seven dollars and the amount dedicated
shall be deposited on a monthly basis into the school major
improvement fund created pursuant to section six, article nine-d,
chapter eighteen of this code.
(C)
School construction fund. --
After the payment or commitment of the proceeds or
collections of this tax for the purposes set forth in sections
sixteen and eighteen of this article,
(1)
Beginning the first day of July, one thousand nine
hundred ninety-five, and continuing on the first day of each
succeeding month thereafter through the last day of June, one
thousand nine hundred ninety-six, there shall be dedicated
monthly from the collections of this tax, the amount of five
hundred eighty-three thousand three hundred thirty-three dollars
and the amount dedicated shall be deposited into the school
construction fund created pursuant to section six, article nine- d, chapter eighteen of this code.
(2) Beginning the first day of July, one thousand nine
hundred ninety-six, and continuing on the first day of each
succeeding month
thereafter,
through the thirtieth day of June,
two thousand five, there shall be dedicated monthly from the
collections of this tax, the amount of one million four hundred
sixteen thousand six hundred sixty-seven dollars and the amount
dedicated shall be deposited into the school construction fund
created pursuant to section six, article nine-d, chapter eighteen
of this code.
(2) Effective the first day of July, one thousand nine
hundred ninety-eight, there shall be dedicated from the
collections of this tax, an amount equal to any annual difference
that may occur between the debt service payment for the one
thousand nine hundred ninety-seven fiscal year for school
improvement bonds issued under the better school building
amendment under the provisions of article nine-c, chapter
eighteen of this code and the amount of funds required for debt
service on these school improvement bonds in any current fiscal
year thereafter. This annual difference shall be prorated
monthly, added to the monthly deposit in subdivision (1) of this
subsection and deposited into the school construction fund
created pursuant to section six, article nine-d, chapter eighteen
of this code.
CHAPTER 18. EDUCATION.
ARTICLE 9A. PUBLIC SCHOOL SUPPORT.
§18-9A-10. Foundation allowance to improve instructional
programs.
(a) For
the each school year
beginning on the first day of
July, one thousand nine hundred ninety-four, and thereafter, the
sum of the allocations shall be in an amount at least equal to
the amount appropriated by the Legislature, in addition to funds
which accrue from balances in the general school fund, or from
appropriations for
such those purposes:
(1) One hundred fifty thousand dollars shall be allocated to
each county;
(2) Distribution to the counties of the remainder of these
funds shall be made proportional to the average of each county's
average daily attendance for the preceding year and the county's
second month net enrollment. Moneys allocated by provision of
this section shall be used to improve instructional programs
according to a plan for instructional improvement which the
affected county board shall file with the state board by the
first day of August of each year, to be approved by the state
board by the first day of September of that year if
such the plan
substantially complies with standards to be adopted by the state
board:
Provided, That notwithstanding any other provision of
this code to the contrary, moneys allocated by provision of this
section may also be used in the implementation and maintenance of
the uniform integrated regional computer information system; and
(3) Up to twenty-five percent of this allocation may be used to employ professional educators
and/or and service personnel in
counties after all applicable provisions of sections four and
five of this article have been fully utilized.
Provided, That
for the school year beginning on the first day of July, one
thousand nine hundred ninety-six, only, up to an additional
twenty five percent of this allocation may be used to employ
classroom teachers, as defined in section one, article one,
chapter eighteen-a of this code, and/or service personnel in
counties after all applicable provisions of sections four and
five of this article have been fully utilized: Provided, however,
That service personnel employed with the additional twenty-five
percent for the school year beginning on the first day of July,
one thousand nine hundred ninety-six, only, may not include
directors, coordinates or supervisors.
Prior to the use of any funds from this section for
personnel costs, the county board must receive authorization from
the state superintendent of schools. The state superintendent
shall require the district board to demonstrate: (1) The need
for the allocation; (2) efficiency and fiscal responsibility in
staffing; and (3)
the sharing of services with adjoining counties
and the regional educational service agency for that county in
the use of the total local district board budget. District
boards shall make application for available funds for the next
fiscal year by the first day of May of each year. On or before
the first day of June, the state superintendent shall review all applications and notify applying district boards of the
distribution of the allocation.
Provided, That for the school
year beginning on the first day of July, one thousand nine
hundred ninety-three, only, the state superintendent shall review
all applications and notify applying district boards of the
distribution of the allocation on or before the first day of
July, one thousand nine hundred ninety-three. allocation. Such
The funds shall be distributed during the fiscal year as
appropriate. The state superintendent shall require the county
board to demonstrate the need for an allocation for personnel
based upon the county's inability to meet the requirements of
state law or state board policy:
Provided, however, That the
funds available for personnel under this section may not be used
to increase the total number of professional noninstructional
personnel in the central office beyond four.
Such The
instructional improvement plan shall be made available for
distribution to the public at the office of each affected county
board.
(b)
Commencing with the school year beginning on the first
day of July, one thousand nine hundred ninety-three, An amount
not less than the amount required to meet debt service
requirements on any revenue bonds issued prior to the first day
of January, one thousand nine hundred ninety-four, and the debt
service requirements on any revenue bonds issued for the purpose
of refunding revenue bonds issued prior to the first day of January, one thousand nine hundred ninety-four, shall be paid
into the school building capital improvements fund created by
section six, article nine-d of this chapter, and shall be used
solely for the purposes of
said that article. The school
building capital improvements fund shall not be utilized to meet
the debt services requirement on any revenue bonds or revenue
refunding bonds for which moneys contained within the school
building debt service fund have been pledged for repayment
pursuant to
said that section.
When the school improvement bonds secured by funds from the
school building capital improvements fund mature, the state board
of education shall annually deposit an amount equal to twenty- four million dollars from the funds allocated in this section
into the school construction fund created pursuant to the
provisions of section six, article nine-d, chapter eighteen of
this code to continue funding school facility construction and
improvements.
CHAPTER 29. 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 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 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.
(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 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 these 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.
When the school improvement bonds, secured by profits from
the lottery and deposited in the school debt service fund,
mature, the lottery director shall allocate monthly, from the net
profits of the lottery for the preceding month, an amount equal
to one million five hundred thousand dollars 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 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 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 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 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.