ENROLLED
Senate Bill No. 297
(By Senators Tomblin, Mr. President, and Caruth,
By Request of the Executive)
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[Passed March 7, 2008; in effect from passage.]
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AN ACT to amend and reenact §18-9D-2, §18-9D-6, §18-9D-8,
§18-9D-13 and §18-9D-15 of the Code of West Virginia,
1931, as amended; to amend said code by adding thereto a
new section, designated §18-9D-4b; and to amend and
reenact §29-22-18a of said code, all relating generally
to the School Building Authority; modifying definitions
and qualifications of construction projects and major
improvement projects; authorizing the School Building
Authority to issue bonds by using moneys deposited in the
Excess Lottery School Building Debt Service Fund from the
State Excess Lottery Fund; providing that moneys from the
State Excess Lottery Fund are deposited into the Excess
Lottery School Building Debt Service Fund; and clarifying
the powers of the authority in issuing bonds.
Be it enacted by the Legislature of West Virginia:
That §18-9D-2, §18-9D-6, §18-9D-8, §18-9D-13 and
§18-9D-15 of the Code of West Virginia, 1931, as amended, be
amended and reenacted; that said code be amended by adding
thereto a new section, designated §18-9D-4b; and that
§29-22-18a of said code be amended and reenacted, all to read
as follows:
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-2. Definitions.
For the purposes of this article, unless a different
meaning clearly appears from the context:
(1) "Authority" means the School Building Authority of
West Virginia;
(2) "Bonds" means bonds issued by the authority pursuant
to this article;
(3) "Construction project" means a project in the
furtherance of a facilities plan with a cost greater than one
million dollars for the new construction, expansion or major
renovation of facilities, buildings and structures for school
purposes, including:
(A) The acquisition of land for current or future use in
connection with the construction project;
(B) New or substantial upgrading of existing equipment,
machinery and furnishings;
(C) Installation of utilities and other similar items
related to making the construction project operational;
(D) Construction project does 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;
other items which are customarily considered to result in a
current or ordinary course of business operating charge or a
major improvement project;
(4) "Cost of project" means the cost of construction,
expansion, 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 related to making the
project operational; 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 ten-year countywide
comprehensive educational facilities plan established by a county board in accordance with guidelines adopted by the
authority to meet the goals and objectives of this article
that:
(A) Addresses the existing school facilities and facility
needs of the county to provide a thorough and efficient
education in accordance with the provisions of this code and
policies of the state board;
(B) Best serves the needs of individual students, the
general school population and the communities served by the
facilities;
(C) Includes the school major improvement plan;
(D) Includes the county board's school access safety plan
required by section three, article nine-f of this chapter;
(E) Is updated annually to reflect projects completed,
current enrollment projections and new or continuing needs;
and
(F) Is approved by the state board and the authority
prior to the distribution of state funds pursuant to this
article to any county board or other entity applying for
funds;
(6) "Project" means a construction project or a major
improvement project;
(7) "Region" means 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:
(A) Deposited in the School Building Capital Improvements
Fund pursuant to section ten, article nine-a of this chapter;
(B) Deposited in the School Construction Fund pursuant to
section thirty, article fifteen, chapter eleven of this code
and section eighteen, article twenty-two, chapter twenty-nine
of this code;
(C) Deposited in the School Building Debt Service Fund
pursuant to section eighteen, article twenty-two, chapter
twenty-nine of this code;
(D) Deposited in the School Major Improvement Fund
pursuant to section thirty, article fifteen, chapter eleven of
this code;
(E) Received, directly or indirectly, from any source for
use in any project completed pursuant to this article;
(F) Received by the authority for the purposes of this
article; and
(G) Deposited in the Excess Lottery School Building Debt
Service Fund pursuant to section eighteen-a, article twenty-
two, chapter twenty-nine of this code;
(9) "School major improvement plan" means a ten-year school maintenance plan that:
(A) Is prepared by a county board in accordance with the
guidelines established by the authority and incorporated in
its Countywide Comprehensive Educational Facilities Plan, or
is prepared by the state board or the administrative council
of an area vocational educational center in accordance with
the guidelines if the entities seek funding from the authority
for a major improvement project;
(B) Addresses the regularly scheduled maintenance for all
school facilities of the county or under the jurisdiction of
the entity seeking funding;
(C) Includes a projected repair and replacement schedule
for all school facilities of the county or of the entity
seeking funding;
(D) Addresses the major improvement needs of each school
within the county or under the jurisdiction of the entity
seeking funding; and
(E) Is required prior to the distribution of state funds
for a major improvement project pursuant to this article to
the county board, state board or administrative council; and
(10) "School major improvement project" means a project
with a cost greater than fifty thousand dollars and less than
one million dollars for the renovation, expansion, 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 related to the renovation, repair or upgrading
in the furtherance of a school major improvement plan. A
major improvement project does 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;
or other items which are customarily considered to result in
a current or ordinary course of business operating charge.
§18-9D-4b. School Building Authority authorized to issue
bonds and pay debt service on bonds with funds
distributed from State Excess Lottery Fund.
The School Building Authority is expressly authorized to
issue bonds and pay debt service on bonds pursuant to the
provisions of this article with funds distributed from the
State Excess Lottery Fund under section eighteen-a, article
twenty-two, chapter twenty-nine of this code and deposited
into the Excess Lottery School Building Debt Service Fund.
§18-9D-6. School Building Capital Improvements Fund in State
Treasury; School 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; Excess Lottery School Building Debt
Service Fund in State Treasury; authority to
pledge the 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 may pledge all or any part
of the revenues paid into the School Building Capital
Improvements Fund that are 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 any additional protective pledge of revenues that
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.
Additionally, the authority may provide in the resolution and
in the trust agreement for priorities on the revenues paid
into the School Building Capital Improvements Fund that are
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 authorized in accordance with the
provisions of section sixteen of this article 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 continued in the State Treasury a special
revenue fund named the School Building Debt Service Fund into
which shall be deposited 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 for which moneys deposited in
the School Building Debt Service Fund have been pledged by the
authority:
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. Additionally,
the authority may provide in the resolution and in the trust
agreement for priorities on the revenues paid into the School
Building Debt Service Fund that are 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, 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 for which moneys deposited in the School Building Debt Service Fund have been pledged 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, for which moneys
deposited in the School Building Debt Service Fund have been
pledged, 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
: Provided, That after
the authority has issued bonds authorized by this article and
after the requirements of debt service and all associated
funds have been satisfied for the fiscal year for which moneys
deposited in the School Building Debt Service Fund have been
pledged, including coverage and reserve funds established in
connection with the bonds issued pursuant to this article, any
remaining balance in the School Building Debt Service Fund may
be transferred to the School Construction Fund created in
subsection (c) of this section and used by the School Building
Authority in its discretion to finance the cost of school
construction or improvement projects authorized in accordance with the provisions of section sixteen of this article on a
cash basis.
(c) There is continued in the State Treasury a special
revenue fund named the School Construction Fund into which
shall be deposited the amounts specified in section thirty,
article fifteen, chapter eleven of this code, together with
any moneys appropriated to the fund by the Legislature
:
Provided, That for the school year beginning the first day of
July, two thousand four, only, funds from the excess lottery
allocated in section eighteen-a, article twenty-two, chapter
twenty-nine of this code shall not be transferred to the
School Construction Fund and, in lieu thereof, made available
for legislative appropriation
: Provided, however, That for the
school year beginning the first day of July, two thousand
four, only, up to five million dollars of the amounts in the
fund may be appropriated by the Legislature for budget
shortfalls.
Expenditures from the School 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 Construction Fund shall be an interest-bearing account,
with the interest credited to and deposited in the School
Construction Fund and expended in accordance with the
provisions of this article. Deposits to and expenditures from
the School Construction Fund are subject to the provisions of
subsection (k), section fifteen of this article.
(d) There is continued in the State Treasury a special
revenue fund named the School Major Improvement Fund into
which shall be deposited 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) There is created in the State Treasury a special
revenue fund named the Excess Lottery School Building Debt
Service Fund into which shall be deposited the amounts
specified in section eighteen-a, article twenty-two, chapter
twenty-nine of this code. All amounts deposited in the fund
shall be pledged, as designated by the authority, to the
repayment of the principal, interest and redemption premium,
if any, on revenue bonds or refunding revenue bonds authorized
by section four-b of this article. On or prior to the first
day of May of each year, 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 for which moneys deposited in the Excess
Lottery 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 for which moneys deposited in the Excess Lottery
School Building Debt Service Fund have been pledged 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 Excess Lottery School Building Debt Service Fund may be
used for the redemption of any of the outstanding bonds issued
under this article, for which moneys deposited in the Excess
Lottery School Building Debt Service Fund have been pledged,
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
: Provided, That after
the authority has issued bonds authorized by this article and
after the requirements of debt service and all associated
funds have been satisfied for the fiscal year, including coverage and reserve funds established in connection with the
bonds issued pursuant to this article for which moneys
deposited in the Excess Lottery School Building Debt Service
Fund have been pledged, any remaining balance in the Excess
Lottery School Building Debt Service Fund may be transferred
to the School Construction Fund created in subsection (c) of
this section and used by the School Building Authority in its
discretion to finance the cost of school construction or
improvement projects authorized in accordance with the
provisions of section sixteen of this article on a cash basis.
(f) The Legislature 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 further finds and declares that
this section, as well as section eighteen, article twenty-two,
chapter twenty-nine of this code, had 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 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 used for the construction and
improvement of school building facilities. The Legislature 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 to maintain existing levels of county funding
for construction, improvement and maintenance of school
building facilities and to generate additional county funds
for those purposes through bonds and special levies whenever
possible. The Legislature further encourages the School
Building Authority, the state board 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 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 of the Constitution of West Virginia; and section
one, article XII of said constitution.
§18-9D-8. Use of proceeds of bonds; bonds exempt from taxation.
(a) The maximum aggregate face value of bonds that may be
issued by the authority, for which the moneys in the School
Building Debt Service Fund or the Excess Lottery School
Building Debt Service Fund are to be pledged, is five hundred
million dollars. The issuance of revenue bonds under the
provisions of this article shall be authorized, from time to
time, by resolution or resolutions of the School Building
Authority which shall set forth the proposed projects
authorized in accordance with the provisions of section
sixteen of this article and provide for the issuance of bonds
in amounts sufficient, when sold as provided in this section,
to provide moneys considered sufficient by the authority to
pay the costs, less the amounts of any other funds available
for the costs or from any appropriation, grant or gift for the
costs
: Provided, That bond issues from which bond revenues are
to be distributed in accordance with section fifteen of this
article for projects authorized pursuant to the provisions of
section sixteen of this article are not required to set forth
the proposed projects in the resolution. The resolution shall
prescribe the rights and duties of the bondholders and the
School Building Authority and, for that purpose, may prescribe
the form of the trust agreement referred to in this section. The bonds may be issued, from time to time, in such amounts;
shall be of such series; bear such date or dates; mature at
such time or times not exceeding forty years from their
respective dates; bear interest at such rate or rates; be in
such denominations; be in such form, either coupon or
registered, carrying such registration, exchangeability and
interchangeability privileges; be payable in such medium of
payment and at such place or places within or without the
state; be subject to such terms of redemption at such prices
not exceeding one hundred five percent of the principal amount
of the bonds; and be entitled to such priorities on the
revenues paid into the fund pledged for repayment of the bonds
as may be provided in the resolution authorizing the issuance
of the bonds or in any trust agreement made in connection with
the bonds
: Provided, however, That revenue bonds issued on or
after the first day of January, one thousand nine hundred
ninety-four, and prior to the first day of January, two
thousand eight, which are secured by lottery proceeds from
section eighteen, article twenty-two, chapter twenty-nine of
this code shall mature at such time or times not exceeding ten
years from their respective dates:
Provided further, That
revenue bonds issued on or after the first day of January, two
thousand eight, which are secured by lottery proceeds from section eighteen or eighteen-a, article twenty-two, chapter
twenty-nine of this code, shall mature at such time or times
not exceeding twenty years from their respective dates.
(b) The bonds shall be signed by the Governor, and by the
president or vice president of the authority, under the great
seal of the state, attested by the Secretary of State, and the
coupons attached to the bonds shall bear the facsimile
signature of the president or vice president of the authority.
In case any of the officers whose signatures appear on the
bonds or coupons cease to be officers before the delivery of
the bonds, the signatures shall nevertheless be valid and
sufficient for all purposes the same as if the officers had
remained in office until the delivery. The revenue bonds
shall be sold in the manner determined by the authority to be
for the best interests of the state.
(c) Any pledge of revenues made by the School Building
Authority for revenue bonds issued prior to the twentieth day
of July, one thousand nine hundred ninety-three, pursuant to
this article is valid and binding between the parties from the
time the pledge is made; and the revenues pledged shall
immediately be subject to the lien of the pledge without any
further physical delivery of the revenues pledged or further
act. The lien of the pledge is valid and binding against all parties having claims of any kind in tort, contract or
otherwise, irrespective of whether the parties have notice of
the lien of the pledge and the pledge shall be a prior and
superior charge over any other use of the revenues pledged.
(d) The proceeds of any bonds shall be used solely for
the purpose or purposes as may be generally or specifically
set forth in the resolution authorizing those bonds and shall
be disbursed in the manner and with the restrictions, if any,
that the authority provides in the resolution authorizing the
issuance of the bonds or in the trust agreement referred to in
this section securing the bonds. If the proceeds of the
bonds, by error in calculations or otherwise, are less than
the cost of any projects specifically set forth in the
resolution, additional bonds may in like manner be issued to
provide the amount of the deficiency; and unless otherwise
provided for in the resolution or trust agreement hereinafter
mentioned, the additional bonds shall be considered to be of
the same issue and are entitled to payment from the same fund,
without preference or priority, as the bonds before issued for
the projects. If the proceeds of bonds issued for the
projects specifically set forth in the resolution authorizing
the bonds issued by the authority exceed the cost of the
bonds, the surplus may be used for any other projects authorized in accordance with the provisions of section
sixteen of this article or in any other manner that the
resolution authorizing the bonds provides. Prior to the
preparation of definitive bonds, the authority may, under like
restrictions, issue temporary bonds with or without coupons,
exchangeable for definitive bonds upon the issuance of the
definitive bonds.
(e) After the issuance of any revenue bonds, the revenues
pledged for the revenue bonds shall not be reduced as long as
any of the revenue bonds are outstanding and unpaid except
under the terms, provisions and conditions that are contained
in the resolution, trust agreement or other proceedings under
which the revenue bonds were issued.
(f) The revenue bonds and the revenue refunding bonds and
bonds issued for combined purposes, together with the interest
on the bonds, are exempt from all taxation by the State of
West Virginia, or by any county, school district, municipality
or political subdivision thereof.
(g) To meet the operational costs of the School Building
Authority, the School Building Authority may transfer to a
special revenue account in the State Treasury interest on any
debt service reserve funds created within any resolution
authorizing the issue of bonds or any trust agreement made in connection with the bonds for expenditure in accordance with
legislative appropriation or allocation of appropriation.
(h) Any school construction bonds issued under this
section shall be issued on parity with any existing School
Building Authority bonds previously issued under this article.
§18-9D-13. Sinking fund for payment of bonds.
(a) From the School Building Capital Improvements Fund
the School Building Authority shall make periodic payments in
an amount sufficient to meet the requirements of any issue of
bonds sold under the provisions of this article prior to the
first day of January, one thousand nine hundred ninety-four,
or for refunding bonds issued prior to that date as may be
specified in the resolution of the authority authorizing the
issue thereof and in any trust agreement entered into in
connection therewith. The payments so made shall be placed as
specified in such resolution or trust agreement in a special
sinking fund which is hereby pledged to and charged with the
payment of the principal of the bonds of such issue and the
interest thereon, and to the redemption or repurchase of such
bonds, such sinking fund to be a fund for all bonds of such
issue without distinction or priority of one over another,
except as may be provided in the resolution authorizing such
issue of bonds. The moneys in the special sinking fund, less such reserve for payment of principal and interest and
redemption premium, if any, as may be required by the
resolution of the School Building Authority, authorizing the
issue or any trust agreement made in connection therewith, may
be used for the redemption of any of the outstanding bonds
payable from such fund which by their terms are then
redeemable, or for the purchase of bonds at the market price,
but not exceeding the price, if any, at which such bonds shall
in the same year be redeemable; and all bonds redeemed or
purchased shall forthwith be canceled and shall not again be
issued.
(b) From the School Building Debt Service Fund or the
Excess Lottery School Building Debt Service Fund, the
authority shall make periodic payments in an amount sufficient
to meet the requirements of any issue of bonds sold under the
provisions of this article on or after the first day of
January, one thousand nine hundred ninety-four, and for which
the authority has pledged revenues in such fund for the
payment of such bonds, as may be specified in the resolution
of the authority authorizing the issue thereof or in any trust
agreement entered into in connection therewith. The payments
so made shall be placed as specified in the resolution or
trust agreement in a special sinking fund which is hereby pledged to and charged with the payment of the principal of
the bonds of the issue and the interest thereon, and to the
redemption or repurchase of the bonds, the sinking fund to be
a fund for all bonds of the particular issue without
distinction or priority of one over another, except as may be
provided in the resolution authorizing the issuance of the
bonds. The moneys in the special sinking fund, less the
reserve for payment of principal and interest and redemption
premium, if any, as may be required by the resolution of the
School Building Authority authorizing the issue or any trust
agreement made in connection therewith, may be used for
redemption of any of the outstanding bonds payable from the
fund which by their terms are then redeemable, or for the
purchase of bonds at the market price, but not exceeding the
price, if any, at which such bonds shall in the same year be
redeemable; and all bonds redeemed or purchased shall
forthwith be canceled and shall not again be issued.
§18-9D-15. Legislative intent; allocation of money among
categories of projects; lease-purchase options;
limitation on time period for expenditure of
project allocation; county maintenance budget
requirements; project disbursements over period
of years; preference for multicounty arrangements; submission of project designs;
set-aside to encourage local participation.
(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 not 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 or the Excess Lottery School Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School 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 and moneys deposited into the
School Access Safety Fund pursuant to section five, article
nine-f of this chapter, may be allocated and may be expended
by the authority for projects authorized in accordance with
the provisions of section sixteen of this article 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 subsection moneys for school major
improvement projects authorized in accordance with the
provisions of section sixteen of this article 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. Furthermore, upon
application by a county board, the authority may allocate and expend under this subsection moneys for school major
improvement projects for vocational programs at comprehensive
high schools, vocational schools cooperating with community
and technical college programs, or both. Each county board is
encouraged to cooperate with community and technical colleges
in the use of existing or development of new vocational
technical facilities. All projects eligible for funds from
this subsection shall be submitted directly to the authority
which shall be solely responsible for the project's
evaluation, subject to the following:
(A) 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 facilities plan; and
(B) 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 not 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 or the Excess Lottery School
Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School 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 and
moneys deposited into the School Access Safety Fund pursuant
to section five, article nine-f of this chapter, shall be set
aside by the authority as an emergency fund to be distributed
in accordance with the guidelines adopted by the authority.
(d) An amount that is not more than five 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 or the Excess Lottery School
Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School 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 and
moneys deposited into the School Access Safety Fund pursuant
to section five, article nine-f of this chapter, may be
reserved by the authority for multiuse vocational-technical
education facilities projects that may include post-secondary
programs as a first priority use. The authority may allocate
and expend under this subsection moneys for any purposes
authorized in this article on multiuse vocational-technical
education facilities projects, including equipment and
equipment updates at the facilities, authorized in accordance
with the provisions of section sixteen of this article. If
the projects approved under this subsection do not require the
full amount of moneys reserved, moneys above the amount
required may be allocated and expended in accordance with
other provisions of this article. A county board, the state
board, an administrative council or the joint administrative
board of a vocational-technical education facility which
includes post-secondary programs may propose projects for
facilities or equipment, or both, which are under the direct
supervision of the respective body
: Provided, That the authority shall, before allocating any moneys for a project
under this subsection, consider all other funding sources
available for the project.
(e) 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 or the Excess Lottery School
Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School 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 and
moneys deposited into the School Access Safety Fund pursuant
to section five, article nine-f of this chapter, shall be
allocated and expended on the basis of need and efficient use
of resources for projects funded in accordance with the
provisions of section sixteen of this article.
(f) If a county board proposes to finance a project that
is authorized in accordance with 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 not
allocate moneys to the county board in connection with the
project
: Provided, That the authority may transfer moneys to
the state board 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
any terms and conditions that 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, subject to the following:
(A) 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 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;
(B) 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;
(C) The failure of the county board to make a scheduled
payment pursuant to the investment contract constitutes an
event of default under the loan agreement;
(D) 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
(E) 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.
(g) 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
section, any county board or other entity to whom moneys are
allocated by the authority that fails to expend the money
within three years of the allocation shall forfeit the
allocation and thereafter is ineligible for further
allocations pursuant to this section until it 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 Construction Fund of the
authority for future allocation and distribution. Funds may
not be distributed for any project under this article unless
the responsible entity has a facilities plan approved by the
state board and the School Building Authority and is prepared
to commence expenditure of the funds during the fiscal year in
which the moneys are distributed.
(h) 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 for projects authorized in
accordance with the provisions of section sixteen of this
article, subject to the following:
(1) The moneys may not be distributed for any project
under this section unless the responsible entity has a
facilities plan approved by the state board and the authority
and is to commence expenditures of the funds during the fiscal
year in which the moneys are distributed;
(2) Any moneys allocated to a project and not distributed
for that project shall be deposited in an account to the
credit of the project, the principal amount to remain to the credit of and available to the project for a period of two
years; and
(3) Any moneys which are unexpended after a two-year
period shall be redistributed on the basis of need from the
School Major Improvement Fund in that fiscal year.
(i) Local matching funds may not be required under the
provisions of this section. However, this article does not
negate the responsibilities of the county boards to maintain
school facilities. 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 shall
promulgate rules relating to county boards' maintenance
budgets, including items which shall be included in the
budgets.
(j) 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.
(k) Funds in the School Construction Fund shall first be
transferred and expended as follows:
(1) Any funds deposited in the School Construction Fund
shall be expended first in accordance with an appropriation by
the Legislature.
(2) To the extent that funds are available in the School
Construction Fund in excess of that amount appropriated in any
fiscal year, the excess funds may be expended for projects
authorized in accordance with the provisions of section
sixteen of this article.
(l) 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.
(m) 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. A vendor who has been debarred pursuant
to the provisions of sections thirty-three-a through thirty-
three-f, inclusive, article three, chapter five-a of this code
may not bid on or be awarded a contract under this section.
(n) The authority may elect to disburse funds for
approved construction projects over a period of more than one
year subject to the following:
(1) The authority may not approve the funding of a school
construction project over a period of more than three years;
(2) The authority may not approve the use of more than
fifty percent of the revenue available for distribution in any
given fiscal year for projects that are to be funded over a
period of more than one year; and
(3) In order to encourage local participation in funding
school construction projects, the authority may set aside
limited funding, not to exceed five hundred thousand dollars,
in reserve for one additional year to provide a county the
opportunity to complete financial planning for a project prior to the allocation of construction funds. Any funding shall be
on a reserve basis and converted to a part of the construction
grant only after all project budget funds have been secured
and all county commitments have been fulfilled. Failure of
the county to solidify the project budget and meet its
obligations to the state within eighteen months of the date
the funding is set aside by the authority will result in
expiration of the reserve and the funds shall be reallocated
by the authority in the succeeding funding cycle.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State Excess Lottery Revenue Fund.
(a) There is continued a special revenue fund within the
State Lottery Fund in the State Treasury which is designated
and known as the State Excess Lottery Revenue Fund. The fund
consists 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
under the provisions of sections ten-b and ten-c, article
twenty-two-a of this chapter and under article twenty-two-b of
this chapter, except the amounts due the commission under
subdivision (1), subsection (a), section one thousand four
hundred eight, article twenty-two-b of this chapter, shall be deposited in the State Treasury and placed into the State
Excess Lottery Revenue 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
the State Treasurer as part of the general revenue of the
state.
(b) For the fiscal year beginning the first day of July,
two thousand two, the commission shall deposit: (1) Sixty-five
million dollars into the subaccount of the State Excess
Lottery Revenue Fund hereby created in the State Treasury to
be known as the General Purpose Account to be expended
pursuant to appropriation of the Legislature; (2) ten million
dollars into the Education Improvement Fund for appropriation
by the Legislature to the PROMISE Scholarship Fund created in
section seven, article seven, chapter eighteen-c of this code;
(3) nineteen million dollars into the Economic Development
Project Fund created in subsection (d) of this section for the
issuance of revenue bonds and to be spent in accordance with
the provisions of said subsection; (4) twenty million dollars
into the School Building Debt Service Fund created in section
six, article nine-d, chapter eighteen of this code for the
issuance of revenue bonds; (5) forty million dollars into the
West Virginia Infrastructure Fund created in section nine, article fifteen-a, chapter thirty-one of this code to be spent
in accordance with the provisions of said article; (6) ten
million dollars into the Higher Education Improvement Fund for
Higher Education; and (7) five million dollars into the State
Park Improvement Fund for Park Improvements. For the fiscal
year beginning the first day of July, two thousand three, the
commission shall deposit: (1) Sixty-five million dollars into
the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) seventeen million
dollars into the Education Improvement Fund for appropriation
by the Legislature to the PROMISE Scholarship Fund created in
section seven, article seven, chapter eighteen-c of this code;
(3) nineteen million dollars into the Economic Development
Project Fund created in subsection (d) of this section for the
issuance of revenue bonds and to be spent in accordance with
the provisions of said subsection; (4) twenty million dollars
into the School Building Debt Service Fund created in section
six, article nine-d, chapter eighteen of this code for the
issuance of revenue bonds; (5) forty million dollars into the
West Virginia Infrastructure Fund created in section nine,
article fifteen-a, chapter thirty-one of this code to be spent
in accordance with the provisions of said article; (6) ten
million dollars into the Higher Education Improvement Fund for Higher Education; and (7) five million dollars into the State
Park Improvement Fund for Park Improvements.
(c) For the fiscal year beginning the first day of July,
two thousand four, and subsequent fiscal years, the commission
shall deposit: (1) Sixty-five million dollars into the General
Purpose Account to be expended pursuant to appropriation of
the Legislature; (2) twenty-seven million dollars into the
Education Improvement Fund for appropriation by the
Legislature to the PROMISE Scholarship Fund created in section
seven, article seven, chapter eighteen-c of this code; (3)
nineteen million dollars into the Economic Development Project
Fund created in subsection (d) of this section for the
issuance of revenue bonds and to be spent in accordance with
the provisions of said subsection; (4) nineteen million
dollars into the School Building Debt Service Fund created in
section six, article nine-d, chapter eighteen of this code for
the issuance of revenue bonds:
Provided, That for the fiscal
year beginning the first day of July, two thousand eight, and
subsequent fiscal years, no moneys shall be deposited in the
School Building Debt Service Fund pursuant to this subsection
and instead nineteen million dollars shall be deposited into
the Excess Lottery School Building Debt Service Fund; (5)
forty million dollars into the West Virginia Infrastructure Fund created in section nine, article fifteen-a, chapter
thirty-one of this code to be spent in accordance with the
provisions of said article; (6) ten million dollars into the
Higher Education Improvement Fund for Higher Education; and
(7) five million dollars into the State Park Improvement Fund
for Park Improvements. No portion of the distributions made
as provided in this subsection and subsection (b) of this
section, except distributions made in connection with bonds
issued under subsection (d) of this section, may be used to
pay debt service on bonded indebtedness until after the
Legislature expressly authorizes issuance of the bonds and
payment of debt service on the bonds through statutory
enactment or the adoption of a concurrent resolution by both
houses of the Legislature. Until subsequent legislative
enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service
on the bonds with funds distributed under this subsection and
subsection (b) of this section, except distributions made in
connection with bonds issued under subsection (d) of this
section, the distributions may be used only to fund capital
improvements that are not financed by bonds and only pursuant
to appropriation of the Legislature.
(d) The Legislature finds and declares that in order to attract new business, commerce and industry to this state, to
retain existing business and industry providing the citizens
of this state with economic security and to advance the
business prosperity of this state and the economic welfare of
the citizens of this state, it is necessary to provide public
financial support for constructing, equipping, improving and
maintaining economic development projects, capital improvement
projects and infrastructure which promote economic development
in this state.
(1) The West Virginia Economic Development Authority
created and provided for in article fifteen, chapter thirty-
one of this code shall, by resolution, in accordance with the
provisions of this article and article fifteen, chapter
thirty-one of this code, and upon direction of the Governor,
issue revenue bonds of the Economic Development Authority in
no more than two series to pay for all or a portion of the
cost of constructing, equipping, improving or maintaining
projects under this section or to refund the bonds at the
discretion of the authority. Any revenue bonds issued on or
after the first day of July, two thousand two, which are
secured by state excess lottery revenue 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 special fund provided in this section for the
payment.
(2) There is continued in the State Treasury a special
revenue fund named the Economic Development Project Fund into
which shall be deposited on and after the first day of July,
two thousand two, the amounts to be deposited in said fund as
specified in subsections (b) and (c) of this section. The
Economic Development Project Fund shall consist of all such
moneys, all appropriations to the fund, all interest earned
from investment of the fund and any gifts, grants or
contributions received by the fund. 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,
including any and all commercially customary and reasonable
costs and expenses which may be incurred in connection with
the issuance, refunding, redemption or defeasance thereof.
The West Virginia Economic Development Authority may further
provide in the resolution and in the trust agreement for
priorities on the revenues paid into the Economic Development
Project 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. The bonds issued
pursuant to this subsection shall be separate from all other
bonds which may be or have been issued, from time to time,
under the provisions of this article.
(3) After the West Virginia Economic Development
Authority has issued bonds authorized by this section and
after the requirements of all funds have been satisfied,
including any coverage and reserve funds established in
connection with the bonds issued pursuant to this subsection,
any balance remaining in the Economic Development Project Fund
may be used for the redemption of any of the outstanding bonds
issued under this subsection 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.
(4) Bonds issued under this subsection shall state on
their face that the bonds do not constitute a debt of the
State of West Virginia; that payment of the bonds, interest
and charges thereon cannot become an obligation of the State
of West Virginia; and that the bondholders' remedies are
limited in all respects to the Special Revenue Fund
established in this subsection for the liquidation of the bonds.
(5) The West Virginia Economic Development Authority
shall expend the bond proceeds from the revenue bond issues
authorized and directed by this section for such projects as
may be certified under the provision of this subsection
:
Provided, That the bond proceeds shall be expended in
accordance with the requirements and provisions of article
five-a, chapter twenty-one of this code and either article
twenty-two or twenty-two-a, chapter five of this code, as the
case may be
: Provided, however, That if such bond proceeds are
expended pursuant to article twenty-two-a, chapter five of
this code and if the Design-Build Board created under said
article determines that the execution of a design-build
contract in connection with a project is appropriate pursuant
to the criteria set forth in said article and that a
competitive bidding process was used in selecting the design
builder and awarding such contract, such determination shall
be conclusive for all purposes and shall be deemed to satisfy
all the requirements of said article.
(6) For the purpose of certifying the projects that will
receive funds from the bond proceeds, a committee is hereby
established and comprised of the Governor, or his or her
designee, the Secretary of the Department of Revenue, the Executive Director of the West Virginia Development Office and
six persons appointed by the Governor
: Provided, That at least
one citizen member must be from each of the state's three
congressional districts. The committee shall meet as often as
necessary and make certifications from bond proceeds in
accordance with this subsection. The committee shall meet
within thirty days of the effective date of this section.
(7) Applications for grants submitted on or before the
first day of July, two thousand two, shall be considered
refiled with the committee. Within ten days from the
effective date of this section as amended in the year two
thousand three, the lead applicant shall file with the
committee any amendments to the original application that may
be necessary to properly reflect changes in facts and
circumstances since the application was originally filed with
the committee.
(8) When determining whether or not to certify a project,
the committee shall take into consideration the following:
(A) The ability of the project to leverage other sources
of funding;
(B) Whether funding for the amount requested in the grant
application is or reasonably should be available from
commercial sources;
(C) The ability of the project to create or retain jobs,
considering the number of jobs, the type of jobs, whether
benefits are or will be paid, the type of benefits involved
and the compensation reasonably anticipated to be paid persons
filling new jobs or the compensation currently paid to persons
whose jobs would be retained;
(D) Whether the project will promote economic development
in the region and the type of economic development that will
be promoted;
(E) The type of capital investments to be made with bond
proceeds and the useful life of the capital investments; and
(F) Whether the project is in the best interest of the
public.
(9) No grant may be awarded to an individual or other
private person or entity. Grants may be awarded only to an
agency, instrumentality or political subdivision of this state
or to an agency or instrumentality of a political subdivision
of this state.
The project of an individual or private person or entity
may be certified to receive a low-interest loan paid from bond
proceeds. The terms and conditions of the loan, including,
but not limited to, the rate of interest to be paid and the
period of the repayment, shall be determined by the Economic Development Authority after considering all applicable facts
and circumstances.
(10) Prior to making each certification, the committee
shall conduct at least one public hearing, which may be held
outside of Kanawha County. Notice of the time, place, date
and purpose of the hearing shall be published in at least one
newspaper in each of the three congressional districts at
least fourteen days prior to the date of the public hearing.
(11) The committee may not certify a project unless the
committee finds that the project is in the public interest and
the grant will be used for a public purpose. For purposes of
this subsection, projects in the public interest and for a
public purpose include, but are not limited to:
(A) Sports arenas, fields, parks, stadiums and other
sports and sports-related facilities;
(B) Health clinics and other health facilities;
(C) Traditional infrastructure, such as water and
wastewater treatment facilities, pumping facilities and
transmission lines;
(D) State-of-the-art telecommunications infrastructure;
(E) Biotechnical incubators, development centers and
facilities;
(F) Industrial parks, including construction of roads, sewer, water, lighting and other facilities;
(G) Improvements at state parks, such as construction,
expansion or extensive renovation of lodges, cabins,
conference facilities and restaurants;
(H) Railroad bridges, switches and track extension or
spurs on public or private land necessary to retain existing
businesses or attract new businesses;
(I) Recreational facilities, such as amphitheaters,
walking and hiking trails, bike trails, picnic facilities,
restrooms, boat docking and fishing piers, basketball and
tennis courts, and baseball, football and soccer fields;
(J) State-owned buildings that are registered on the
National Register of Historic Places;
(K) Retail facilities, including related service, parking
and transportation facilities, appropriate lighting,
landscaping and security systems to revitalize decaying
downtown areas; and
(L) Other facilities that promote or enhance economic
development, educational opportunities or tourism
opportunities thereby promoting the general welfare of this
state and its residents.
(12) Prior to the issuance of bonds under this
subsection, the committee shall certify to the Economic Development Authority a list of those certified projects that
will receive funds from the proceeds of the bonds. Once
certified, the list may not thereafter be altered or amended
other than by legislative enactment.
(13) If any proceeds from sale of bonds remain after
paying costs and making grants and loans as provided in this
subsection, the surplus may be deposited in an account created
in the State Treasury to be known as the Economic Development
Project Bridge Loan Fund to be administered by the Economic
Development Authority created in article fifteen, chapter
thirty-one of this code. Expenditures from the fund are not
authorized from collections but are to be made only in
accordance with appropriation by the Legislature and in
accordance with the provisions of article three, chapter
twelve of this code and upon fulfillment of the provisions of
article two, chapter five-a of this code. Loan repayment
amounts, including the portion attributable to interest, shall
be paid into the fund created in this subdivision.
(e) If the commission receives revenues in an amount that
is not sufficient to fully comply with the requirements of
subsections (b), (c) and (h) of this section, the commission
shall first make the distribution to the Economic Development
Project Fund; second, make the distribution or distributions to the other funds from which debt service is to be paid;
third, make the distribution to the Education Improvement Fund
for appropriation by the Legislature to the PROMISE
Scholarship Fund; and fourth, make the distribution to the
General Purpose Account
: Provided, That, subject to the
provisions of this subsection, to the extent such revenues are
not pledged in support of revenue bonds which are or may be
issued, from time to time, under this section, the revenues
shall be distributed on a pro rata basis.
(f) For the fiscal year beginning on the first day of
July, two thousand two, and each fiscal year thereafter, the
commission shall, after meeting the requirements of
subsections (b), (c) and (h) of this section and after
transferring to the State Lottery Fund created under section
eighteen of this article an amount equal to any transfer from
the State Lottery Fund to the Excess Lottery Fund pursuant to
subsection (f), section eighteen of this article, deposit
fifty percent of the amount by which annual gross revenue
deposited in the State Excess Lottery Revenue Fund exceeds two
hundred twenty-five million dollars in a fiscal year in a
separate account in the State Lottery Fund to be available for
appropriation by the Legislature.
(g) When bonds are issued for projects under subsection (d) of this section or for the School Building Authority,
infrastructure, higher education or park improvement purposes
described in this section that are secured by profits from
lotteries deposited in the State Excess Lottery Revenue Fund,
the Lottery Director shall allocate first to the Economic
Development Project Fund an amount equal to one tenth of the
projected annual principal, interest and coverage requirements
on any and all revenue bonds issued, or to be issued, on or
after the first day of July, two thousand two, as certified to
the Lottery Director; and second, to the fund or funds from
which debt service is paid on bonds issued under this section
for the School Building Authority, infrastructure, higher
education and park improvements an amount equal to one tenth
of the projected annual principal, interest and coverage
requirements on any and all revenue bonds issued, or to be
issued, on or after the first day of April, two thousand two,
as certified to the Lottery Director. In the event there are
insufficient funds available in any month to transfer the
amounts required pursuant to this subsection, the deficiency
shall be added to the amount transferred in the next
succeeding month in which revenues are available to transfer
the deficiency.
(h) In fiscal year two thousand four and thereafter, prior to the distributions provided in subsection (c) of this
section, the Lottery Commission shall deposit into the General
Revenue Fund amounts necessary to provide reimbursement for
the refundable credit allowable under section twenty-one,
article twenty-one, chapter eleven of this code.
(i) (1) The Legislature considers the following as
priorities in the expenditure of any surplus revenue funds:
(A) Providing salary and/or increment increases for
professional educators and public employees;
(B) Providing adequate funding for the Public Employees
Insurance Agency; and
(C) Providing funding to help address the shortage of
qualified teachers and substitutes in areas of need, both in
number of teachers and in subject matter areas.
(2) The provisions of this subsection may not be
construed by any court to require any appropriation or any
specific appropriation or level of funding for the purposes
set forth in this subsection.
(j) The Legislature further directs the Governor to focus
resources on the creation of a prescription drug program for
senior citizens by pursuing a Medicaid waiver to offer
prescription drug services to senior citizens; by
investigating the establishment of purchasing agreements with other entities to reduce costs; by providing discount prices
or rebate programs for seniors; by coordinating programs
offered by pharmaceutical manufacturers that provide reduced
cost or free drugs; by coordinating a collaborative effort
among all state agencies to ensure the most efficient and
cost-effective program possible for the senior citizens of
this state; and by working closely with the state's
congressional delegation to ensure that a national program is
implemented. The Legislature further directs that the
Governor report his progress back to the Joint Committee on
Government and Finance on an annual basis beginning in
November of the year two thousand one until a comprehensive
program has been fully implemented.