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Introduced Version - Originating in Committee Senate Bill 514 History

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Key: Green = existing Code. Red = new code to be enacted





Senate Bill No. 514

(By Senators McCabe, Kessler, Craigo, Bowman, Sprouse, Plymale, Unger, McKenzie, Jackson and Wooton)

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[Originating in the Select Committee on Economic Development;

reported February 5, 2002.]

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A BILL to amend and reenact section eighteen-a, article twenty-two, chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, relating to providing for the expenditure of certain state excess lottery revenue funds to pay for public infrastructure and other improvements in connection with the development and construction of an urban renewal and revitalization project in downtown Wheeling known as the Wheeling victorian outlet center; providing for the dedication of certain consumers sales tax revenues to the West Virginia infrastructure fund for a period of four years; and providing that all nontax revenues which may be received by the West Virginia development office with respect to the proposed Wheeling victorian outlet center be dedicated to the West Virginia infrastructure fund.

Be it enacted by the Legislature of West Virginia:
That section eighteen-a, article twenty-two, chapter twenty- nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State excess lottery revenue fund

(a) There is hereby created a special revenue fund within the state lottery fund in the state treasury which shall be designated and known as the "state excess lottery revenue 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 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 section 29-22B-1408(a) (1) 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 one, the moneys of the fund established in this section shall be used for the purpose of subsidizing salary increases and associated employee benefits paid from the state general revenue fund as determined by the secretary of administration effective the first day of July, two thousand one or thereafter, including, but not limited, to the salary increase for teachers provided in section two, article four, chapter eighteen-a of this code, by enactment of the Legislature in two thousand one; the salary increase for members of the state police provided in section five, article two, chapter fifteen of this code by enactment of the Legislature in two thousand one; and general salary increases for state employees: Provided, That effective the first day of October, two thousand one, the full year salary increases for state employees other than correctional officers and members of the state police equal seven hundred fifty-six dollars for each full-time employee: Provided, however, That effective the first day of July, two thousand one, the full year salary increases for uniformed correctional officers equal two thousand dollars for each full-time employee; and that the full year salary increases for non-uniformed correctional staff, whose core duties include contact with inmates or juvenile detainees on a regular and frequent basis, equal one thousand two hundred fifty dollars for each full-time employee; but that for all other division of correction and division of juvenile services employees, the full year salary increase equals seven hundred fifty-six dollars for each full-time employee. Until the thirtieth day of June, two thousand two, the lottery commission shall, upon direction from the governor, transfer the moneys of the account to the state general revenue fund in the amounts specified in the governor's official revenue estimates to subsidize the funding of the salary increases described in this subsection. Beginning the first day of July, two thousand two, and thereafter, the transfer authority granted by this subsection is terminated. After first satisfying the funding requirements directed by this subsection, the moneys remaining in the fund shall be disbursed in the manner provided by subsection (c) of this section.
(c) For the fiscal year beginning the first day of July, two thousand one, the commission shall deposit: (1) Five million five hundred thousand dollars into the account hereby created in the state treasury to be known as 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; (2) twenty-five million dollars to the school building debt service fund created in section six, article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (3) twenty-five million dollars in 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 that article; (4) ten million dollars into a separate account within the state lottery fund to be known as the higher education improvement fund for higher education; and (5) nine million dollars into a separate account within the state lottery fund to be known as the state park improvement fund for park improvements. 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) twenty-five million dollars to the school building debt service fund created in section six, article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (4) fifty million dollars in 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 that article: Provided, That the first twenty million dollars of such deposit with the West Virginia infrastructure fund shall be dedicated exclusively for and expended in connection with the development and construction of that certain urban renewal and revitalization project in downtown Wheeling to be known as the Wheeling victorian outlet center: Provided. however, that the expenditure of such moneys, directly or indirectly, and the expenditure of other public, private and local moneys which may be expended in connection with the proposed Wheeling victorian outlet center project, shall not be subject to the requirements and provisions of article fifteen-a, chapter thirty-one of this code, the requirements and provisions of articles twenty-two and twenty-two-a, chapter five of this code, or the requirements and provisions of chapter five-g of this code; nor shall such moneys be subject to any restrictions or limitations under subsection (g) of this section of the code; but such moneys shall be disbursed as directed by the West Virginia development office, in accordance with such agreement or agreements as the West Virginia development office may enter into with either public or private entities, or both, in connection with the development, construction and operation of the proposed Wheeling victorian outlet center; (5) ten million dollars into the higher education improvement fund for higher education; and (6) nine 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) twenty-five million dollars to the school building debt service fund created in section six, article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (4) fifty million dollars in 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 that article: Provided further, That the first twenty million dollars of such deposit with the West Virginia infrastructure fund shall be dedicated exclusively for and expended in connection with the development and construction of that certain urban renewal and revitalization project in downtown Wheeling to be known as the Wheeling victorian outlet center: And provided further, That the expenditure of such moneys, directly or indirectly, and the expenditure of other public, private and local moneys which may be expended in connection with the proposed Wheeling victorian outlet center project, shall not be subject to the requirements and provisions of article fifteen-a, chapter thirty-one of this code, the requirements and provisions of articles twenty-two and twenty-two-a, chapter five of this code, or the requirements and provisions of chapter five-g of this code; nor shall such moneys be subject to any restrictions or limitations under subsection (g) of this section of the code; but such moneys shall be disbursed as directed by the West Virginia development office, in accordance with such agreement or agreements as the West Virginia development office may enter into with either public or private entities, or both, in connection with the development, construction and operation of the proposed Wheeling victorian outlet center; (5) ten million dollars into the higher education improvement fund for higher education; and (6) nine million dollars into the state park improvement fund for park improvements. 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) twenty-five million dollars to the school building debt service fund created in section six, article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (4) fifty million dollars in 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 that article: And Provided further, That for each of the fiscal years beginning the first day of July, two thousand four, and beginning the first day of July, two thousand five, but not in any subsequent fiscal years, the first twenty million dollars of such deposit with the West Virginia infrastructure fund shall be dedicated exclusively for and expended in connection with the development and construction of that certain urban renewal and revitalization project in downtown Wheeling to be known as the Wheeling victorian outlet center: And Provided further, That the expenditure of such moneys, directly or indirectly, and the expenditure of other public, private and local moneys which may be expended in connection with the proposed Wheeling victorian outlet center project, shall not be subject to the requirements and provisions of article fifteen-a, chapter thirty-one of this code, the requirements and provisions of articles twenty-two and twenty-two-a, chapter five of this code, or the requirements and provisions of chapter five-g of this code; nor shall such moneys be subject to any restrictions or limitations under subsection g of this section of the code; but such moneys shall be disbursed as directed by the West Virginia development office, in accordance with such agreement or agreements as the West Virginia development office may enter into with either public or private entities, or both, in connection with the development, construction and operation of the proposed Wheeling victorian outlet center; (5) ten million dollars into the higher education improvement fund for higher education; and (6) nine million dollars into the state park improvement fund for park improvements. For each of the four fiscal years beginning the first day of July, two thousand two, the first day of July, two thousand three, the first day of July, two thousand four, and the first day of July, two thousand five, thirteen million dollars of consumers sales tax revenues collected under article fifteen, chapter eleven of this code, shall be deposited into the West Virginia infrastructure fund created in section nine, article fifteen-a, chapter thirty-one of this code, to be spent by the West Virginia infrastructure and jobs development council on projects, as defined in article fifteen-a, chapter thirty-one of this code, in accordance with the provisions of that article. All non-tax revenues or moneys received or collected at any time by the West Virginia development office in respect of the proposed Wheeling victorian outlet center pursuant to any agreement or agreements which the West Virginia development office may enter into with either public or private entities, or both, in connection with the development, construction and operation of the proposed Wheeling victorian outlet center, shall also be deposited into the West Virginia infrastructure fund created in section nine, article fifteen-a, chapter thirty-one of this code, to be spent by the West Virginia infrastructure and jobs development council on projects, as defined in article fifteen-a, chapter thirty-one of this code, in accordance with the provisions of that article.
(d) If the commission receives revenues in an amount that is not sufficient to fully comply with the requirements of subsection (c) of this section, the commission shall, after providing for the distribution to the education improvement fund for appropriation by the Legislature to the promise scholarship fund, distribute the revenue on a pro rata basis.
(e) 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 (c) and (h) of this section, 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.
(f) When bonds are issued for the 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 to the debt service fund created for that purpose, as a third priority from the net profits of the lottery under this section and section eighteen of this article for the preceding month, 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 accordance with legislation authorizing issuance of the bonds. In the event there are insufficient funds available in any month to transfer the amount 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. A third-in-priority lien on the proceeds of the state lottery fund and the state excess lottery revenue fund up to a maximum amount equal to the projected annual principle principal, interest and coverage ratio requirements, not to exceed an annual amount specified in legislation authorizing issuance of the bonds, may be granted by the state in favor of the bonds it issues which are secured by net lottery profits and state excess lottery revenue.
(g) No portion of the distributions made as provided in subsection (c) 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 passage 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 subsection (c) 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.
(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 matters 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.

NOTE: The purpose of this bill is to authorize and direct the expenditure of certain state excess lottery revenue funds for public infrastructure and other improvements in connection with the development and construction of an urban renewal and revitalization project in downtown Wheeling to be known as the "Wheeling Victorian Outlet Center." The bill also dedicates certain consumer sales tax revenues and other revenues received by the State in respect of the project into the West Virginia infrastructure fund.

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