COMMITTEE SUBSTITUTE

FOR

H. B. 4165

(By Delegates Mezzatesta and Frederick)


(Originating in the Committee on Finance)


[February 22, 2000]


A BILL to amend and reenact section six, article five-p, chapter sixteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to further amend said article by adding thereto a new section, designated section ten-a; and to amend and reenact section eighteen, article twenty-two, chapter twenty-nine of this code, all relating to the senior citizens prescription drug subsidy program; requiring the commissioner of the bureau of senior services to administer the program; providing for the establishment and maintenance of the program in legislative rules jointly proposed for promulgation by the commissioner of the bureau of senior citizens and the director of the public employees insurance agency; and funding for the program.

Be it enacted by the Legislature of West Virginia:
That section six, article five-p, chapter sixteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that said article be further amended by adding thereto a new section, designated section ten- a; and that section eighteen, article twenty-two, chapter twenty- nine of this code
be amended and reenacted all to read as follows:
CHAPTER 16. PUBLIC HEALTH.

ARTICLE 5P. SENIOR SERVICES.
§16-5P-6. Powers and duties generally.
The commissioner shall be the executive and administrative head of the bureau and shall have the power and duty to:
(a) Exercise general supervision of the bureau;
(b) Propose legislative rules for the effective and expeditious performance and discharge of the duties and responsibilities placed upon the commissioner by law;
(c) Conduct and coordinate studies of the problems of encountered by the state's older people citizens;
(d) Encourage and promote the establishment of local programs and services for the aging;
(e) Conduct public education programs of public education on the problems of the related to aging;
(f) Review state programs for the aging, and annually make recommendations to the governor and the Legislature;
(g) Encourage and assist governmental and private agencies to coordinate effective efforts on behalf of the aging;
(h) Coordinate statewide local and voluntary efforts to serve the aging and develop programs at the local level;
(i) Supervise fiscal management and responsibilities of the bureau;
(j) Keep an accurate and complete record of all bureau proceedings, record and file all bonds and contracts and assume responsibility for the custody and preservation of all papers and documents of the bureau;
(k) Submit an annual report to the governor on the condition, operation and functioning of the bureau;
(l) Invoke any legal or special remedy for the enforcement of orders or the provisions of this chapter;
(m) Standardize administration, expedite bureau business, revise rules and promote the efficiency of the service;
(n) Provide a program of continuing professional, technical and specialized instruction for the personnel of the bureau and local service providers; and
(o) Receive on behalf of the state any grant or gift and accept the same, so that the title shall pass to the state. All moneys from grants or gifts shall be deposited with the state treasurer in a special fund and shall be used for the purposes set forth in the grant or gift; and
(p) Administer the program provided for in section ten-a of this article by subsidizing, within the funds available, the cost of prescription drugs for eligible persons over the age of sixty-five years.
§16-5P-10a. Senior citizens prescription drug subsidy program. (a) There is hereby created a senior citizens prescription drug subsidy program, which shall be administered by the bureau of senior services in accordance with the provisions of this section and within the funding made available pursuant to the provisions of subsection (c) of this section. The program shall be designed to provide a subsidy for prescription medications purchased by eligible citizens over the age of sixty-five years: Provided, That the otherwise eligible citizen does not qualify for other third-party reimbursement for prescription drugs. Funds administered as reimbursement for prescription drugs under the provisions of this section may be paid directly to qualified pharmaceutical providers, or the eligible citizen, upon proof of purchase.
(b) The commissioner of the bureau of senior services and the director of the public employees insurance agency shall jointly propose legislative rules for promulgation in accordance with the provisions of article three, chapter twenty-nine-a of this code, to provide for the establishment and administration of the senior citizens prescription drug subsidy program consistent with the provisions of this section. At a minimum, the rules shall accomplish the following:
(1) Establish eligibility guidelines for program participation based on income and the need for the prescription drugs;
(2) Develop criteria, which is to be applied uniformly, to determine which pharmaceutical providers may participate in the program;
(3) Determine the percentage of subsidy to be provided based on the cost of the particular prescription drug, the availability of an equivalent generic prescription drug, and the amount of funds available in the account;
(4) Develop criteria, which is to be applied uniformly, to determine the circumstances in which a pharmaceutical provider or eligible person would be declared ineligible; and
(5) Develop a system to verify that the prescription drug has actually been dispensed to the eligible person; and
(6) Maintain a registry of companies and organizations that provide free medications or provide assistance to persons in securing medications, and make this information available to consumers through all local senior programs.
(c) Expenditures for the establishment and maintenance of the senior citizens prescription drug subsidy program
shall be made by the commissioner of the bureau of senior services pursuant the Legislature's appropriations of amounts allocated for this purpose under subdivision (2), subsection (j), section eighteen, article twenty-two, chapter twenty-nine of this code.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 22. STATE LOTTERY ACT.
§29-22-18. State lottery fund; appropriations and deposits; not part of general revenue; no transfer of state funds after initial appropriation; use and repayment of initial appropriation; allocation of fund for prizes, net profit and expenses; surplus; state lottery education fund; state lottery senior citizens fund; allocation and appropriation of net profits.

(a) There is hereby continued a special revenue fund in the state treasury which shall be designated and known as the "state lottery fund". The fund shall consist of all appropriations to the fund and all interest earned from investment of the fund and any gifts, grants or contributions received by the fund. All revenues received from the sale of lottery tickets, materials and games shall be deposited with the state treasurer and placed into the "state lottery fund". The revenue shall be disbursed in the manner provided in this section for the purposes stated in this section and shall not be treated by the auditor and treasurer as part of the general revenue of the state.
(b) No appropriation, loan or other transfer of state funds may be made to the commission or lottery fund after the initial appropriation.
(c) A minimum annual average of forty-five percent of the gross amount received from each lottery shall be allocated and disbursed as prizes.
(d) Not more than fifteen percent of the gross amount received from each lottery shall be allocated to and may be disbursed as necessary for fund operation and administration expenses.
(e) The excess of the aggregate of the gross amount received from all lotteries over the sum of the amounts allocated by subsections (c) and (d) of this section shall be allocated as net profit. In the event that the percentage allotted for operations and administration generates a surplus, the surplus shall be allowed to accumulate to an amount not to exceed two hundred fifty thousand dollars. On a monthly basis, the director shall report to the joint committee on government and finance of the Legislature any surplus in excess of two hundred fifty thousand dollars and remit to the state treasurer the entire amount of those surplus funds in excess of two hundred fifty thousand dollars which shall be allocated as net profit.
(f) After first satisfying the requirements for funds dedicated to the school building debt service fund in subsection (h) of this section to retire the ten-year bonds authorized to be issued pursuant to section eight, article nine-d, chapter eighteen of this code, and then satisfying the requirements for funds dedicated to the education, arts, sciences and tourism debt service fund in subsection (i) of this section to retire the bonds authorized to be issued pursuant to section eleven-a, article six, chapter five of this code, the Legislature shall annually appropriate all of the remaining amounts allocated as net profits in subsection (e) of this section, in such proportions as it considers beneficial to the citizens of this state, to: (1) The lottery education fund created in subsection (g) of this section; (2) the school construction fund created in section six, article nine-d, chapter eighteen of this code; (3) the lottery senior citizens fund created in subsection (j) of this section; and (4) the division of natural resources created in section three, article one, chapter twenty of this code and the West Virginia development office as created in section one, article two, chapter five-b of this code, in accordance with subsection (k) of this section. No transfer to any account other than the school building debt service account and the education, arts, sciences and tourism debt service fund may be made in any period of time in which a default exists in respect to debt service on bonds issued by the school building authority and the state building commission which are secured by lottery proceeds. No additional transfer shall be made to any account other than the school building debt service account and the education, arts, sciences and tourism debt service fund when net profits for the preceding twelve months are not at least equal to one hundred fifty percent of debt service on bonds issued by the school building authority and the state building commission which are secured by net profits.
(g) There is hereby continued a special revenue fund in the state treasury which shall be designated and known as the "lottery education fund". The fund shall consist of the amounts allocated pursuant to subsection (f) of this section, which shall be deposited into the lottery education fund by the state treasurer. The lottery education fund shall also consist of all interest earned from investment of the lottery education fund and any other appropriations, gifts, grants, contributions or moneys received by the lottery education fund from any source. The revenues received or earned by the lottery education fund shall be disbursed in the manner provided below and shall not be treated by the auditor and treasurer as part of the general revenue of the state. Annually, the Legislature shall appropriate the revenues received or earned by the lottery education fund to the state system of public and higher education for these educational programs it considers beneficial to the citizens of this state.
(h) On or before the twenty-eighth day of each month through the twentieth day of June, two thousand five, the lottery director shall allocate to the school building debt service fund created pursuant to the provisions of section six, article nine-d, chapter eighteen of this code, as a first priority from the net profits of the lottery for the preceding month, an amount equal to one tenth of the projected annual principal, interest and coverage ratio requirements on any and all revenue bonds and refunding bonds issued, or to be issued, on or after the first day of April, one thousand nine hundred ninety-four, as certified to the lottery director in accordance with the provisions of section six, article nine-d, chapter eighteen of this code. In no event shall the monthly amount allocated exceed one million eight hundred thousand dollars, nor shall the total allocation of the net profits to be paid into the school building debt service fund, as provided in this section, in any fiscal year exceed the lesser of the principal and interest requirements certified to the lottery director or eighteen million dollars. In the event there are insufficient funds available in any month to transfer the amount required to be transferred pursuant to this subsection to the school debt service fund, the deficiency shall be added to the amount transferred in the next succeeding month in which revenues are available to transfer the deficiency. A lien on the proceeds of the state lottery fund up to a maximum amount equal to the projected annual principal, interest and coverage ratio requirements, not to exceed twenty-seven million dollars annually, may be granted by the school building authority in favor of the bonds it issues which are secured by the net lottery profits.
When the school improvement bonds, secured by profits from the lottery and deposited in the school debt service fund, mature, the lottery director shall allocate monthly, from the net profits of the lottery for the preceding month, an amount equal to one million five hundred thousand dollars into the school construction fund created pursuant to the provisions of section six, article nine-d, chapter eighteen of this code.
(i) On or before the twenty-eighth day of each month through the twenty-eighth day of June, two thousand twenty-one, the lottery director shall allocate to the education, arts, sciences and tourism debt service fund created pursuant to the provisions of section eleven-a, article six, chapter five of this code, as a second priority from the net profits of the lottery for the preceding month, an amount equal to one tenth of the projected annual principal, interest and coverage ratio requirements on any and all revenue bonds and refunding bonds issued, or to be issued, on or after the first day of April, one thousand nine hundred ninety-six, as certified to the lottery director in accordance with the provisions of that section. In no event shall the monthly amount allocated exceed one million dollars nor shall the total allocation paid into the education, arts, sciences and tourism debt service fund, as provided in this section, in any fiscal year exceed the lesser of the principal and interest requirements certified to the lottery director or ten million dollars. In the event there are insufficient funds available in any month to transfer the amount required pursuant to this subsection to the education, arts, sciences and tourism debt service fund, the deficiency shall be added to the amount transferred in the next succeeding month in which revenues are available to transfer the deficiency. A second-in-priority lien on the proceeds of the state lottery fund up to a maximum amount equal to the projected annual principal, interest and coverage ratio requirements, not to exceed fifteen million dollars annually, may be granted by the state building commission in favor of the bonds it issues which are secured by the net lottery profits.
(j)(1) There is hereby continued a special revenue fund in the state treasury which shall be designated and known as the "lottery senior citizens fund". The fund shall consist of the amounts allocated pursuant to subsection (f) of this section, which shall be deposited into the lottery senior citizens fund by the state treasurer. The lottery senior citizens fund shall also consist of all interest earned from investment of the lottery senior citizens fund and any other appropriations, gifts, grants, contributions or moneys received by the lottery senior citizens fund from any source. The revenues received or earned by the lottery senior citizens fund shall not be treated by the auditor or treasurer as part of the general revenue of the state. Annually, the Legislature shall appropriate the revenues received or earned by the lottery senior citizens fund to such senior citizens medical care and other programs as it considers beneficial to the citizens of this state.
(2) Unless otherwise prohibited by the provisions of this section, the Legislature shall include in its allocation to the lottery senior citizens fund an additional amount to be appropriated for expenditure for the purpose of establishing and maintaining the senior citizens prescription drug subsidy program described in section ten-a, article five-p, chapter sixteen of this code. The additional amount allocated and appropriated by the Legislature for this purpose for fiscal year two thousand one shall be not less than six million dollars. The amount allocated and appropriated
by the Legislature for this purpose for fiscal year two thousand two and thereafter shall be not less than nine million dollars.
(k) The division of natural resources and the West Virginia development office, as appropriated by the Legislature, may use the amounts allocated to them pursuant to subsection (f) of this section for one or more of the following purposes: (1) The payment of any or all of the costs incurred in the development, construction, reconstruction, maintenance or repair of any project or recreational facility, as these terms are defined in section four, article five, chapter twenty of this code, pursuant to the authority granted to it under article five, chapter twenty of this code; (2) the payment, funding or refunding of the principal of, interest on or redemption premiums on any bonds, security interests or notes issued by the parks and recreation section of the division of natural resources under article five, chapter twenty of this code; or (3) the payment of any advertising and marketing expenses for the promotion and development of tourism or any tourist facility or attraction in this state.