WEST virginia Legislature
2017 regular session
By
[
to the Committee on Finance.
A BILL to amend and
reenact §11-13A-5b of the Code of West
Virginia, 1931, as amended, relating to the West Virginia Future Fund; and
prohibiting deposits into the fund in years when certain state retirement
systems are not funded to ninety percent or more of their actuarial accrued
liabilities.
Be it enacted by the
Legislature of West Virginia:
That §11-13A-5b of the Code of West Virginia, 1931, as amended, be
amended and reenacted to read as follows:
ARTICLE
13A.
SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.
§11-13A-5b. Creation
of West Virginia Future Fund; legislative intent; calculation of deposits from
excess severance tax revenues; permissible uses of investment income and
limitations on expenditures; definitions.
(a) There is hereby
created continued in the State Treasury a special revenue account,
designated the West Virginia Future Fund, which is an interest-bearing account
and may be invested by the West Virginia Investment Management Board in the
manner permitted by the provisions of article six, chapter twelve of this code,
with the investment income to be credited to the fund and deposited in the
special revenue account.
(b) The Legislature
declares its intention to use the fund as a means of conserving a portion of
the state's revenue derived from the
increased revenue proceeds received by the state as a result of any mineral
production as well as other funding sources as the Legislature may designate in
order to meet future needs. The
principal of the fund shall remain inviolate and no portion of the principal
may be appropriated, expended or encumbered by the Legislature or any official
of the state. Only the investment income of this fund may be appropriated and
expended: Provided, That no more than the average net investment return
for the immediately preceding five fiscal years may be appropriated or expended
in any one fiscal year.
(c) (1)
Notwithstanding any provision of this code to the contrary, for the fiscal year
beginning July 1, 2014, and each year thereafter, the Secretary of Revenue
shall cause to be deposited in this fund three percent of the annual severance
tax revenue which would otherwise be deposited into the General Revenue Fund
which is attributable to the severance of coal, limestone, sandstone, natural
gas and oil and collected and received pursuant to the provisions of sections
three and three-a, article thirteen-a, chapter eleven of this code. Provided, That these
(2) The deposits shall required by subdivision
(1) of this subsection may only be made during fiscal years: within
(A) In which
the balance of the Revenue Shortfall Reserve Fund equals or exceeds thirteen
percent of the state's General Revenue Fund budget for the fiscal year just
ended as determined within sixty days of the end of that prior fiscal year as
provided by subsection (b), section twenty, article two, chapter eleven-b of
this code; Provided, however, That these deposits shall not be
made in any fiscal year
(B) In which the Governor's
General Revenue Fund estimate relies does not rely on transfers
from the Revenue Shortfall Reserve Fund; Provided further,
That these deposits shall not be made in any fiscal year for
(C) In which mid-year spending reductions, hiring
freezes, mid-year decreases in appropriations or transfers from the Revenue
Shortfall Reserve Fund are not necessitated due to revenue shortfalls or
would not be necessitated if the deposits were to be made; And provided further, That and
(D) In which any of the
following retirement systems is not funded to ninety percent or more of the
actuarial accrued liabilities:
(i) The West Virginia
Public Employees Retirement System as provided in article ten, chapter five of
this code;
(ii) The West Virginia
State Police Death, Disability and Retirement Fund as provided in article two,
chapter fifteen of this code;
(iii) The West Virginia
State Police Retirement System as provided in article two-a, chapter fifteen of
this code;
(iv) The State Teachers
Retirement System as provided in article seven-a, chapter eighteen of this
code;
(v) The West Virginia
Higher Education Retirement Plan and Supplemental Retirement Plan as provided
in article seven-a and article twenty-three of chapter eighteen of this code;
and
(vi) The Teachers'
Defined Contribution Retirement System as provided in article seven-b, chapter
eighteen of this code.
(3) Amounts that may be deposited into the fund in error or
found later to be subject to these limitations shall be redeposited into the
General Revenue Fund. The Legislature may, by general appropriation or by
designation of other funding sources, deposit into the fund additional moneys
as it considers appropriate.
(d) In order to maximize
the value of the fund, no money from the fund may be expended or appropriated
until fiscal year 2020 and thereafter the Legislature may appropriate, subject
to the limitations provided in this section, from the fund solely for enhancing
education and workforce development; economic development and diversification;
infrastructure improvements; and tax relief measures for the benefit of the
citizens and businesses of the State of West Virginia.
(e) For purposes of this
section:
(1) "Economic development and diversification" means fostering economic growth and development in
the state, including commercial, industrial, community, cultural or historical
improvements; or preservation or other proper purposes.
(2) "Infrastructure improvements" means fostering infrastructure improvements
including, but not limited to, post-mining land use, water or wastewater
facilities or a part thereof, storm water systems, steam, gas, telephone and
telecommunications, broadband development, electric lines and installations,
roads, bridges, railroad spurs, drainage and flood control facilities,
industrial park development or buildings that promote job creation and
retention.
(3)
"Tax relief" means reducing the tax
responsibility of citizens and businesses located in the State of West Virginia,
including, but not limited to, increasing the Homestead Exemption and reducing
or eliminating the ad valorem property tax on inventory and equipment held for
commercial or industrial use.
NOTE: The purpose of this bill is
to prohibit deposits into the West Virginia Future Fund in years when certain
state retirement systems are not funded to ninety percent or more of their
actuarial accrued liabilities.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.