Senate Bill No. 115
(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced February 15, 2001; referred to the Committee
on Education; and then to the Committee on Finance.]
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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 sections
one, two, three, six and fifteen, article nine-d, chapter
eighteen of said code; and to amend and reenact section
eighteen, article twenty-two, chapter twenty-nine of said
code, all relating to the school building authority
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 sections one, two, three,
six and fifteen, article nine-d, 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 except as
otherwise expressly provided in this article.
(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, on the first day of each month, 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 building authority 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) On the first day of each month, 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
building
authority construction fund created pursuant to section six,
article nine-d, chapter eighteen of this code:
Provided, That for
each month commencing the first day of July, two thousand one
through the first day of June, two thousand four, there shall be dedicated monthly from the collections of this tax, the amount of
one million eighty three thousand three hundred thirty-three
dollars and the amount dedicated shall be deposited into the school
building authority 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
building authority construction fund created pursuant to section
six, article nine-d, chapter eighteen of this code.
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-1. School building authority; powers.
The school building authority shall consist of ten persons, of
whom one shall be the state superintendent of schools, ex officio;
three shall be members of the state board of education, elected by
the state board; and six shall be citizens of the state, appointed
by the governor, by and with the advice and consent of the Senate, who are knowledgeable in matters relevant to the issues addressed
by the authority, one of whom shall be representative of the
interests of the construction trades.
The citizen appointments shall be made as soon as possible
after the effective date of this section, and no two citizen
appointees shall be residents within the same region.
Two of the
initial appointments shall be for two-year terms, and two shall be
for four-year terms, with all successive appointments being for
four-year terms. Until such appointments take effect, the state
board as constituted under the provisions of section one, article
two of this chapter may act as the authority with such power as was
granted them under the prior enactment of this section.
The school building authority shall meet at least quarterly,
and the citizen members shall be reimbursed for reasonable and
necessary expenses actually incurred in the performance of their
official duties from funds appropriated or otherwise made available
for such purposes upon submission of an itemized statement
therefor. The state superintendent of schools shall serve as
president of the authority.
The acts performed by the members of the state board of
education in their capacity as members of the school building
authority are solely the acts of the authority.
§18-9D-2. Definitions.
The following terms, wherever used or referred to in this
article, have the following meanings, unless a different meaning
clearly appears from the context:
(1) "Authority" means the school building authority of West
Virginia or, if said authority shall be abolished, any board or
officer succeeding to the principal functions thereof, or to whom
the powers given to said authority shall be given by law;
(2) "Bonds" means bonds issued by the authority pursuant to
this article;
(3) "Construction project" means a project with a cost of
project greater than five hundred thousand dollars for the new
construction, major renovation of facilities, buildings and
structures for school purposes including the acquisition of land
for current or future use in connection therewith, as well as new
or substantial upgrading of existing equipment, machinery,
furnishings, installation of utilities and other similar items
convenient in connection with placing the foregoing into operation:
Provided, That a construction project may not include such items as
books, computers or equipment used for instructional purposes,
fuel, supplies, routine utility services fees, routine maintenance
costs, ordinary course of business improvements and other items
which are customarily deemed to result in a current or ordinary
course of business operating charge:
Provided, however, That a
construction project may not include a major improvement project;
(4) "Cost of project" means the cost of construction,
renovation, repair and safety upgrading of facilities, buildings
and structures for school purposes; the cost of land, equipment,
machinery, furnishings, installation of utilities and other similar
items convenient in connection with placing the foregoing into operation; and the cost of financing, interest during construction,
professional service fees and all other charges or expenses
necessary, appurtenant or incidental to the foregoing, including
the cost of administration of this article;
(5) "Facilities plan" means the county-wide comprehensive
educational facilities plan for school facilities required prior to
the distribution of state funds to any county board pursuant to
subsection (a), section sixteen of this article;
(6) "Project" means a construction project or a major
improvement project;
(7) "Region" means that the area encompassed within and
serviced by a regional educational service agency established
pursuant to section twenty-six, article two of this chapter;
(8) "Revenue" or "revenues" means moneys deposited in the
school building capital improvements fund pursuant to the operation
of section ten, article nine-a of this chapter; moneys deposited in
the school
building authority construction fund pursuant to the
operation of section thirty, article fifteen, chapter eleven of
this code and pursuant to the operation of section eighteen,
article twenty-two, chapter twenty-nine of this code; moneys
deposited in the school building debt service fund pursuant to
section eighteen, article twenty-two, chapter twenty-nine of this
code; moneys deposited in the school major improvement fund
pursuant to the operation of section thirty, article fifteen,
chapter eleven of this code; and moneys received, directly or
indirectly, from any source for use in any project completed pursuant to this article; and any other moneys received by the
authority for the purposes of this article;
(9) "School major improvement plan" means the ten-year school
maintenance plan to be prepared by each county board of education
and by the state board of education or the administrative council
of an area vocational educational center if such entity seeks
funding from the authority for a major improvement project, which
school major improvement plan is required prior to the distribution
of state funds for a major improvement project pursuant to
subsection (b), section sixteen of this article; and
(10) "School major improvement project" means a project with
a cost greater than fifty thousand dollars and less than five
hundred thousand dollars for the renovation, the repair and safety
upgrading of existing school facilities, buildings and structures,
including the substantial repair or upgrading of equipment,
machinery, building systems, utilities and other similar items
convenient in connection with such renovation, repair or upgrading:
Provided, That a major improvement project may not include such
items as books, computers or equipment used for instructional
purposes, fuel, supplies, routine utility services fees, routine
maintenance costs, ordinary course of business improvements and
other items which are customarily deemed to result in a current or
ordinary course of business operating charge.
§18-9D-3. Powers of authority.
The school building authority has the power:
(1) To sue and be sued, plead and be impleaded;
(2) To have a seal and alter the same at pleasure;
(3) To contract to acquire and to acquire, in the name of the
authority by purchase, lease-purchase not to exceed a term of
twenty-five years, or otherwise, real property or rights or
easements necessary or convenient for its corporate purposes and to
exercise the power of eminent domain to accomplish those purposes;
(4) To acquire, hold and dispose of real and personal property
for its corporate purposes;
(5) To make bylaws for the management and rule of its affairs;
(6) To appoint, contract with and employ attorneys, bond
counsel, accountants, construction and financial experts,
underwriters, financial advisers, trustees, managers, officers and
such other employees and agents as may be necessary in the judgment
of the authority and to fix their compensation:
Provided, That
contracts entered into by the school building authority in
connection with the issuance of bonds under this article to provide
professional and technical services, including, without limitation,
accounting, actuarial, underwriting, consulting, trustee, bond
counsel, legal services and contracts relating to the purchase or
sale of bonds are subject to the provisions of article three,
chapter five-a of this code:
Provided, however, That
notwithstanding any other provisions of this code, any authority of
the attorney general of this state relating to the review of
contracts and other documents to effectuate the issuance of bonds
under this article shall be exclusively limited to the form of the
contract and document:
Provided further, That the attorney general of this state shall complete all reviews of contracts and documents
relating to the issuance of bonds under this article within ten
calendar days of receipt of the contract and document for review;
(7) To make contracts and to execute all instruments necessary
or convenient to effectuate the intent of and to exercise the
powers granted to it by this article;
(8) To renegotiate all contracts entered into by it whenever,
due to a change in situation, it appears to the authority that its
interests will be best served;
(9) To acquire by purchase, eminent domain or otherwise all
real property or interests in the property necessary or convenient
to accomplish the purposes of this article;
(10) To require proper maintenance and insurance of any
project authorized under this section;
(11) To charge rent for the use of all or any part of a
project or buildings at any time financed, constructed, acquired or
improved, in whole or in part, with the revenues of the authority;
(12) To assist any county board of education that chooses to
acquire land, buildings and capital improvements to existing school
buildings and property for use as public school facilities, by
lease from a private or public lessor for a term not to exceed
twenty-five years with an option to purchase pursuant to an
investment contract with the lessor on such terms and conditions as
may be determined to be in the best interests of the authority, the
state board of education and the county board of education,
consistent with the purposes of this article, by transferring funds to the state board of education as provided in subsection (e),
section fifteen of this article for the use of the county board of
education;
(13) To accept and expend any gift, grant, contribution,
bequest or endowment of money to, or for the benefit of, the
authority, from the state of West Virginia or any other source for
any or all of the purposes specified in this article or for any one
or more of such purposes as may be specified in connection with the
gift, grant, contribution, bequest or endowment;
(14) To enter on any lands and premises for the purposes of
making surveys, soundings and examinations;
(15) To contract for architectural, engineering or other
professional services considered necessary or economical by the
authority to provide consultative or other services to the
authority or to any regional educational service agency or county
board requesting professional services offered by the authority, to
evaluate any facilities plan or any project encompassed in the
plan, to inspect existing facilities or any project that has
received or may receive funding from the authority, or to perform
any other service considered by the authority to be necessary or
economical. Assistance to the region or district may include the
development of preapproved systems, plans, designs, models or
documents; advice or oversight on any plan or project; or any other
service that may be efficiently provided to regional educational
service agencies or county boards by the authority;
(16) To provide funds on an emergency basis to repair or replace property damaged by fire, flood, wind, storm, earthquake or
other natural occurrence, the funds to be made available in
accordance with guidelines of the school building authority;
(17) To transfer moneys to custodial accounts maintained by
the school building authority with a state financial institution
from the school
building authority construction fund and the school
improvement fund created in the state treasury pursuant to the
provisions of section six of this article, as necessary to the
performance of any contracts executed by the school building
authority in accordance with the provisions of this article;
(18) To enter into agreements with county boards and persons,
firms or corporations to facilitate the development of county board
projects and county board facilities plans. The county board
participating in an agreement shall pay at least twenty-five
percent of the cost of the agreement. Nothing in this section
shall be construed to supersede, limit or impair the authority of
county boards to develop and prepare their projects or plans; and
(19) To do all things necessary or convenient to carry out the
powers given in this article.
§18-9D-6. School building capital improvements fund in state
treasury; school building authority construction
fund in state treasury; school building debt service
fund in state treasury; school improvement fund in
state treasury; collections to be paid into special
funds; authority to pledge such collections as
security for refunding revenue bonds; authority to finance projects on a cash basis.
(a) There is continued in the state treasury a school building
capital improvements fund to be expended by the authority as
provided in this article. The school building capital improvements
fund shall be an interest bearing account with interest credited to
and deposited in the school building capital improvements fund and
expended in accordance with the provisions of this article.
The school building authority has authority to pledge all or
such part of the revenues paid into the school building capital
improvements fund as may be needed to meet the requirements of any
revenue bond issue or issues authorized by this article prior to
the twentieth day of July, one thousand nine hundred ninety-three,
or revenue bonds issued to refund revenue bonds issued prior to
that date, including the payment of principal of, interest and
redemption premium, if any, on, the revenue bonds and the
establishing and maintaining of a reserve fund or funds for the
payment of the principal of, interest and redemption premium, if
any, on the revenue bond issue or issues when other moneys pledged
may be insufficient for the payment of the principal, interest and
redemption premium, including such additional protective pledge of
revenues as the authority in its discretion has provided by
resolution authorizing the issuance of the bonds or in any trust
agreement made in connection with the bond issue. The authority
may further provide in the resolution and in the trust agreement
for such priorities on the revenues paid into the school building
capital improvements 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 article.
Any balance remaining in the school building capital
improvements fund after the authority has issued bonds authorized
by this article, and after the requirements of all funds including
reserve funds established in connection with the bonds issued prior
to the twentieth day of July, one thousand nine hundred
ninety-three, pursuant to this article have been satisfied, may be
used for the redemption of any of the outstanding bonds issued
under this article which by their terms are then redeemable, or for
the purchase of the bonds at the market price, but not exceeding
the price, if any, at which the bonds are in the same year
redeemable, and all bonds redeemed or purchased shall immediately
be canceled and shall not again be issued.
The school building authority, in its discretion, may use the
moneys in the school building capital improvements fund to finance
the cost of projects on a cash basis. Any pledge of moneys in the
fund for revenue bonds issued prior to the twentieth day of July,
one thousand nine hundred ninety-three, is a prior and superior
charge on the fund over the use of any of the moneys in the fund to
pay for the cost of any project on a cash basis: Provided, That
any expenditures from the fund, other than for the retirement of
revenue bonds, may only be made by the authority in accordance with
the provisions of this article.
(b) There is hereby continued in the state treasury a special
revenue fund named the school building debt service fund into which shall be deposited on and after the first day of April, one
thousand nine hundred ninety-four, the amounts specified in section
eighteen, article twenty-two, chapter twenty-nine of this code.
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
article: Provided, That deposited moneys may not be pledged to the
repayment of any revenue bonds issued prior to the first day of
January, one thousand nine hundred ninety-four, or with respect to
revenue bonds issued for the purpose of refunding revenue bonds
issued prior to the first day of January, one thousand nine hundred
ninety-four. The authority may further provide in the resolution
and in the trust agreement for priorities on the revenues paid into
the school building 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 article. On or prior
to the first day of May of each year, commencing the first day of
May, one thousand nine hundred ninety-four, 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 issued on or after the first day of January, one
thousand nine hundred ninety-four, and for which moneys deposited
in the school building debt service fund have been pledged, or will
be pledged, for repayment pursuant to this section.
After the authority has issued bonds authorized by this
article, 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 article, any
balance remaining in the school building debt service fund may be
used for the redemption of any of the outstanding bonds issued
under this article 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 the bonds are redeemable,
and all bonds redeemed or purchased shall be immediately canceled
and shall not again be issued.
(c) There is hereby continued in the state treasury a special
revenue fund, named the Fund 3965, renamed the school building
authority construction fund into which shall be deposited on and
after the first day of July, one thousand nine hundred ninety-four,
the amounts specified in section thirty, article fifteen, chapter
eleven of this code, together with any moneys appropriated thereto
by the Legislature. Expenditures from the school building
authority construction fund shall be for the purposes set forth in
this article, including lease-purchase payments under agreements
made pursuant to subsection (e), section fifteen of this article
and section nine, article five of this chapter and are authorized
from collections in accordance with the provisions of article
three, chapter twelve of this code and from other revenues annually
appropriated by the Legislature from lottery revenues as authorized
by section eighteen, article twenty-two, chapter twenty-nine of
this code, pursuant to the provisions set forth in article two,
chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth
in this article may be transferred to other accounts or funds and
redesignated for other purposes by appropriation of the
Legislature. The school building authority construction fund shall
be an interest bearing account, with the interest credited to and
deposited in the school building authority construction fund and
expended in accordance with the provisions of this article.
Deposits to and expenditures from the school building authority
construction fund are subject to the provisions of subsection (i),
section fifteen of this article.
(d) There is hereby continued in the state treasury a special
revenue fund named the school major improvement fund into which
shall be deposited on and after the first day of July, one thousand
nine hundred ninety-four, the amounts specified in section thirty,
article fifteen, chapter eleven of this code, together with any
moneys appropriated to the fund by the Legislature. Expenditures
from the school major improvement fund shall be for the purposes
set forth in this article and are authorized from collections in
accordance with the provisions of article three, chapter twelve of
this code and from other revenues annually appropriated by the
Legislature from lottery revenues as authorized by section
eighteen, article twenty-two, chapter twenty-nine of this code,
pursuant to the provisions set forth in article two, chapter five-a
of this code. Amounts collected which are found from time to time
to exceed the funds needed for purposes set forth in this article
may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature. The school
major improvement fund shall be an interest bearing account, with
interest being credited to and deposited in the school major
improvement fund and expended in accordance with the provisions of
this article.
(e) The Legislature hereby finds and declares that the supreme
court of appeals of West Virginia has held that the issuance of
additional revenue bonds authorized under the school building
authority act, as enacted in this article prior to the twentieth
day of July, one thousand nine hundred ninety-three, constituted an
indebtedness of the state in violation of section four, article X
of the constitution of West Virginia, but that revenue bonds issued
under this article prior to the twentieth day of July, one thousand
nine hundred ninety-three, are not invalid. The Legislature
further finds and declares that the financial capacity of a county
to construct, lease and improve school facilities depends upon the
county's bonding capacity (local property wealth), voter
willingness to pass bond issues and the county's ability to
reallocate other available county funds instead of criteria related
to educational needs or upon the ability of the school building
authority created in this article to issue bonds that comply with
the holding of the West Virginia supreme court of appeals or
otherwise assist counties with the financing of facilities
construction and improvement. The Legislature hereby further finds
and declares that this section, as well as section eighteen,
article twenty-two, chapter twenty-nine of this code, have been reenacted during the first extraordinary session of the West
Virginia Legislature in the year one thousand nine hundred ninety-
four, in an attempt to comply with the holding of the supreme court
of appeals of West Virginia.
The Legislature hereby further finds and declares that it
intends, through the reenactment of this section and section
eighteen, article twenty-two, chapter twenty-nine of this code, to
dedicate a source of state revenues to special revenue funds for
the purposes of paying the debt service on bonds and refunding
bonds issued subsequent to the first day of January, one thousand
nine hundred ninety-four, the proceeds of which will be utilized
for the construction and improvement of school building facilities.
The Legislature hereby further finds and declares that it intends,
through the reenactment of this section and section thirty, article
fifteen, chapter eleven of this code and section eighteen, article
twenty-two, chapter twenty-nine of this code, to appropriate
revenues to two special revenue funds for the purposes of
construction and improvement of school building facilities.
Furthermore, the Legislature intends to encourage county boards of
education to maintain existing levels of county funding for
construction, improvement and maintenance of school building
facilities and to generate additional county funds for such
purposes through bonds and special levies whenever possible. The
Legislature further encourages the school building authority, the
state board of education and county boards of education to propose
uniform project specifications for comparable projects whenever possible to meet county needs at the lowest possible cost.
The Legislature hereby further finds and declares that it
intends, through the reenactment of this section and section
eighteen, article twenty-two, chapter twenty-nine of this code, to
comply with the provisions of sections four and six, article X; and
section one, article XII of the constitution of West Virginia.
§18-9D-15. Legislative intent; distribution of money.
(a) It is the intent of the Legislature to empower the school
building authority to facilitate and provide state funds and to
administer all federal funds provided for the construction and
major improvement of school facilities so as to meet the
educational needs of the people of this state in an efficient and
economical manner. The authority shall make funding determinations
in accordance with the provisions of this article and shall assess
existing school facilities and each facility's school major
improvement plan in relation to the needs of the individual
student, the general school population, the communities served by
the facilities and facility needs statewide.
(b) An amount that is no more than three percent of the sum of
moneys that are determined by the authority to be available for
distribution during the then current fiscal year from: (1) Moneys
paid into the school building capital improvements fund pursuant to
section ten, article nine-a of this chapter; (2) the issuance of
revenue bonds for which moneys in the school building debt service
fund are pledged as security; (3) moneys paid into the school
building authority construction fund pursuant to section six of this article; and (4) any other moneys received by the authority,
except moneys paid into the school major improvement fund pursuant
to section six of this article, may be allocated and may be
expended by the authority for projects that service the educational
community statewide or, upon application by the state board, for
educational programs that are under the jurisdiction of the state
board. In addition, upon application by the state board or the
administrative council of an area vocational educational center
established pursuant to article two-b of this chapter, the
authority may allocate and expend under this section moneys for
school major improvement projects proposed by the state board or an
administrative council for school facilities under the direct
supervision of the state board or an administrative council,
respectively: Provided, That the authority may not expend any
moneys for a school major improvement project proposed by the state
board or the administrative council of an area vocational
educational center unless the state board or an administrative
council has submitted a ten-year school major improvement plan, to
be updated annually, pursuant to section sixteen of this article:
Provided, however, That the authority shall, before allocating any
moneys to the state board or the administrative council of an area
vocational educational center for a school improvement project,
consider all other funding sources available for the project.
(c) An amount that is no more than two percent of the moneys
that are determined by the authority to be available for
distribution during the current fiscal year from: (1) Moneys paid into the school building capital improvements fund pursuant to
section ten, article nine-a of this chapter; (2) the issuance of
revenue bonds for which moneys in the school building debt service
fund are pledged as security; (3) moneys paid into the school
building authority construction fund pursuant to section six of
this article; and (4) any other moneys received by the authority,
except moneys deposited into the school major improvement fund,
shall be set aside by the authority as an emergency fund to be
distributed in accordance with the guidelines adopted by the
authority.
(d) The remaining moneys determined by the authority to be
available for distribution during the then current fiscal year
from: (1) Moneys paid into the school building capital improvements
fund pursuant to section ten, article nine-a of this chapter; (2)
the issuance of revenue bonds for which moneys in the school
building debt service fund are pledged as security; (3) moneys paid
into the school building authority construction fund pursuant to
section six of this article; and (4) any other moneys received by
the authority, except moneys deposited into the school major
improvement fund, shall be allocated and expended on the basis of
need and efficient use of resources, the basis to be determined by
the authority in accordance with the provisions of section sixteen
of this article.
(e) If a county board of education proposes to finance a
project that is approved pursuant to section sixteen of this
article through a lease with an option to purchase leased premises upon the expiration of the total lease period pursuant to an
investment contract, the authority may allocate no moneys to the
county board in connection with the project: Provided, That the
authority may transfer moneys to the state board of education,
which, with the authority, shall lend the amount transferred to the
county board to be used only for a one-time payment due at the
beginning of the lease term, made for the purpose of reducing
annual lease payments under the investment contract, subject to the
following conditions:
(1) The loan shall be secured in the manner required by the
authority, in consultation with the state board, and shall be
repaid in a period and bear interest at a rate as determined by the
state board and the authority and shall have such terms and
conditions as are required by the authority, all of which shall be
set forth in a loan agreement among the authority, the state board
and the county board;
(2) The loan agreement shall provide for the state board and
the authority to defer the payment of principal and interest upon
any loan made to the county board during the term of the investment
contract, and annual renewals of the investment contract, among the
state board, the authority, the county board and a lessor:
Provided, That in the event a county board, which has received a
loan from the authority for a one-time payment at the beginning of
the lease term, does not renew the subject lease annually until
performance of the investment contract in its entirety is
completed. The county board is in default and the principal of the loan, together with all unpaid interest accrued to the date of the
default, shall at the option of the Authority, in consultation with
the state board, become due and payable immediately or subject to
renegotiation among the state board, the authority and the county
board: Provided, however, That if a county board renews the lease
annually through the performance of the investment contract in its
entirety, the county board shall exercise its option to purchase
the leased premises: Provided further, That the failure of the
county board to make a scheduled payment pursuant to the investment
contract constitute an event of default under the loan agreement:
And provided further, That upon a default by a county board, the
principal of the loan, together with all unpaid interest accrued to
the date of the default, shall at the option of the authority, in
consultation with the state board, become due and payable
immediately or subject to renegotiation among the state board, the
authority and the county board: And provided further, That if the
loan becomes due and payable immediately, the authority, in
consultation with the state board, shall use all means available
under the loan agreement and law to collect the outstanding
principal balance of the loan, together with all unpaid interest
accrued to the date of payment of the outstanding principal
balance; and
(3) The loan agreement shall provide for the state board and
the authority to forgive all principal and interest of the loan
upon the county board purchasing the leased premises pursuant to
the investment contract and performance of the investment contract in its entirety.
(f) To encourage county boards to proceed promptly with
facilities planning and to prepare for the expenditure of any state
moneys derived from the sources described in this subsection, any
county board failing to expend money within three years of the
allocation to the county board shall forfeit the allocation and
thereafter is ineligible for further allocations pursuant to this
subsection until the county board is ready to expend funds in
accordance with an approved facilities plan: Provided, That the
authority may authorize an extension beyond the three-year
forfeiture period not to exceed an additional two years. Any
amount forfeited shall be added to the total funds available in the
school building authority construction fund of the authority for
future allocation and distribution.
(g) The remaining moneys that are determined by the authority
to be available for distribution during the then current fiscal
year from moneys paid into the school major improvement fund
pursuant to section six of this article shall be allocated and
distributed on the basis of need and efficient use of resources,
the basis to be determined by the authority in accordance with the
provisions of section sixteen of this article: Provided, That the
moneys may not be distributed to any county board that does not
have an approved school major improvement plan or to any county
board that is not prepared to commence expenditures of the funds
during the fiscal year in which the moneys are distributed:
Provided, however, That any moneys allocated to a county board and not distributed to that county board shall be deposited in an
account to the credit of that county board, the principal amount to
remain to the credit of and available to the county board for a
period of two years. Any moneys which are unexpended after a
two-year period shall be forfeited by the county and redistributed
on the basis of need from the school major improvement fund in that
fiscal year.
(h) No local matching funds may be required under the
provisions of this section. However, the responsibilities of the
county boards of education to maintain school facilities are not
negated by the provisions of this article. To be eligible to
receive an allocation of school major improvement funds from the
authority, a county board must have expended in the previous fiscal
year an amount of county moneys equal to or exceeding the lowest
average amount of money included in the county board's maintenance
budget over any three of the previous five years and must have
budgeted an amount equal to or greater than the average in the
current fiscal year: Provided, That the state board of education
shall promulgate rules relating to county boards' maintenance
budgets, including items which shall be included in the budgets.
(i) Any county board may use moneys provided by the authority
under this article in conjunction with local funds derived from
bonding, special levy or other sources. Distribution to a county
board, or to the state board or the administrative council of an
area vocational educational center pursuant to subsection (b) of
this section, may be in a lump sum or in accordance with a schedule of payments adopted by the authority pursuant to guidelines adopted
by the authority.
(j) Funds in the school building authority construction fund
shall first be transferred and expended as follows:
Any funds deposited in the school building authority
construction fund shall be expended first in accordance with an
appropriation by the Legislature. To the extent that funds are
available in the school building authority construction fund in
excess of that amount appropriated in any fiscal year, the excess
funds may be expended in accordance with the provisions of this
article. Any projects which the authority identified and announced
for funding on or before the first day of August, one thousand nine
hundred ninety-five, or identified and announced for funding on or
before the thirty-first day of December, one thousand nine hundred
ninety-five, shall be funded by the authority in an amount which is
not less than the amount specified when the project was identified
and announced.
(k) It is the intent of the Legislature to encourage county
boards to explore and consider arrangements with other counties
that may facilitate the highest and best use of all available
funds, which may result in improved transportation arrangements for
students, or which otherwise may create efficiencies for county
boards and the students. In order to address the intent of the
Legislature contained in this subsection, the authority shall grant
preference to those projects which involve multicounty arrangements
as the authority shall determine reasonable and proper.
(l) County boards shall submit all designs for construction of
new school buildings to the school building authority for review
and approval prior to preparation of final bid documents:
Provided, That a vendor who has been debarred pursuant to the
provisions of sections thirty-three-a through thirty-three-f,
article three, chapter five-a of this code, may not bid on or be
awarded a contract under this section.
CHAPTER 29. MISCELLANEOUS BOARD AND COMMISSIONS.
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) subsections (h) and (j) 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
building authority 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 three, article one, 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) (l) 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 these educational programs 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. 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, maybe granted by the school
building authority in favor of the bonds it issues which are
secured by the net lottery profits.
When the school improvements 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 months, an amount equal to one million five hundred thousand dollars into the school
building
authority construction fund created pursuant to the provisions of
section six, article nine-d, chapter eighteen of this code.
(i) On or before the twenty-eighth day of each month 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) On or before the twenty-eighth day of each month through
the twenty-eighth day of June, two thousand four, commencing the
twenty-eighth day of July, two thousand one, 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 third priority from the net profits of
the lottery for the preceding month, an amount equal to one tenth
of the projected annual interest requirements on any and all
revenue bonds issued, or to be issued, on or after the first day of
April, two thousand one, 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 four 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 interest requirements
certified to the lottery director or four million dollars.
(j) (k) 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 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) (l)The division of natural resources and the West
Virginia development office, as appropriated by the Legislature,
may use the amounts allocated to 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.
NOTE: The purpose of this bill is to extend the power of the
school building authority to issue bonds utilizing state lottery
profits beyond fiscal year two thousand four and to permit the
school building authority to utilize additional lottery profits for
the payment of interest on bonds issued by the school building
authority prior to July one, two thousand four, while concurrently
reducing the deposit into the school building authority
construction fund. An additional purpose of the bill is to clarify
the fund name utilized by the school building authority to avoid
confusion that may result from a similarly titled account held by
the West Virginia state department of education.
Strike-throughs indicate new language that would be stricken
from the present law, and underscoring indicates new language that
would be added.
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