COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 682
(By Senators Plymale, Edgell, Unger, Bailey, Green,
Hunter, Oliverio, Stollings, Wells, White, Guills and Hall)
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[Originating in the Committee on Finance;
reported February 22, 2008.]
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A BILL to amend and reenact §18B-10-8 of the Code of West Virginia,
1931, as amended; and to amend and reenact §29-22-18 of said
code, all relating to creating a special revenue fund known as
the Community and Technical College Capital Improvement Fund;
providing for depositing funds pledged to repay principal,
interest and/or redemption premium on certain bonds authorized
by the commission for community and technical college capital
improvements; and allocating five million dollars to the
Higher Education Policy Commission Community and Technical
College Capital Improvement Fund for community and technical
college education capital improvements.
Be it enacted by the Legislature of West Virginia:
That §18B-10-8 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that §29-22-18 of said code be amended and reenacted, all to read as follows:
CHAPTER 18B. HIGHER EDUCATION.
ARTICLE 10. FEES AND OTHER MONEY COLLECTED AT STATE INSTITUTIONS
OF HIGHER EDUCATION.
§18B-10-8. Collection; disposition and use of capital and auxiliary
capital fees; creation of special capital and
auxiliary capital improvements funds; revenue bonds.
(a)
Effective the first day of July, two thousand four, this
This section and any rules adopted by the commission, council or
both, in accordance with this section and article three-a, chapter
twenty-nine-a of this code, governs the collection, disposition and
use of the capital and auxiliary capital fees authorized by section
one of this article.
Prior to the first day of July, two thousand
four, the statutory provisions governing collection and disposition
of capital funds in place prior to the enactment of this section
remain in effect.
(b)
Fees for full-time students. -- The governing boards shall
fix capital and auxiliary capital fees for full-time students at
each state institution of higher education per semester. For
institutions under its jurisdiction, a governing board may fix
such
the fees at higher rates for students who are not residents of this
state.
(c)
Fees for part-time students. -- For all part-time students
and for all summer school students, the governing boards shall impose and collect
such the fees in proportion to, but not
exceeding, the fees paid by full-time students. Refunds of
such
the fees may be made in the same manner as any other fee collected
at state institutions of higher education.
(d) There is
created continued in the State Treasury a special
capital improvements fund and special auxiliary capital
improvements fund for each state institution of higher education
and the commission into which shall be paid all proceeds,
respectively, of:
(1) The capital and auxiliary capital fees collected from
students at all state institutions of higher education pursuant to
this section; and
(2) The fees collected from
such the students pursuant to
section one of this article. The fees shall be expended by the
commission and governing boards for the payment of the principal of
or interest on any revenue bonds issued by the board of regents or
the succeeding governing boards for which
such the fees were
pledged prior to the enactment of this section.
(e) The governing boards may make expenditures from any of the
special capital improvements funds or special auxiliary capital
improvement funds established in this section to finance, in whole
or in part, together with any federal, state or other grants or
contributions, for any one or more of the following projects:
(1) The acquisition of land or any rights or interest
therein in land;
(2) The construction or acquisition of new buildings;
(3) The renovation or construction of additions to existing
buildings;
(4) The acquisition of furnishings and equipment for
any such
the buildings; and
(5) The construction or acquisition of any other capital
improvements or capital education facilities at
such the state
institutions of higher education, including any roads, utilities or
other properties, real or personal, or for other purposes
necessary, appurtenant or incidental to the construction,
acquisition, financing and placing in operation of
such the
buildings, capital improvements or capital education facilities,
including student unions, dormitories, housing facilities, food
service facilities, motor vehicle parking facilities and athletic
facilities.
(f) The governing boards, in their discretion, may use the
moneys in
such the special capital improvements funds and special
auxiliary improvement funds to finance the costs of the
above
purposes
set forth in subsection (a) of this section on a cash
basis. The commission, when singly or jointly requested by the
governing boards, periodically may issue revenue bonds of the state
as provided in this section to finance all or part of
such the
purposes and pledge all or any part of the moneys in such special funds for the payment of the principal of and interest on
such the
revenue bonds, and for reserves
therefor for the revenue bonds.
Any pledge of
such the special funds for
such the revenue bonds
shall be a prior and superior charge on
such the special funds over
the use of any of the moneys in
such the funds to pay for the cost
of any of
such the purposes on a cash basis. Any expenditures from
such the special funds, other than for the retirement of revenue
bonds, may be made by the commission or governing boards only to
meet the cost of a predetermined capital improvements program for
one or more of the state institutions of higher education, in
such
the order of priority
as was agreed upon by the governing board or
boards and the commission and for which the aggregate revenue
collections projected are presented to the Governor for inclusion
in the annual budget bill, and are approved by the Legislature for
expenditure.
(g)
such The revenue bonds periodically may be authorized and
issued by the commission or governing boards to finance, in whole
or in part, the purposes provided in this section in an aggregate
principal amount not exceeding the amount which the commission
determines can be paid as to both principal and interest and
reasonable margins for a reserve therefor from the moneys in
such
the special funds.
(h) The issuance of
such the revenue bonds shall be authorized
by a resolution adopted by the governing board receiving the proceeds and the commission and
such the revenue bonds shall bear
such the date or dates; mature at such time or times not exceeding
forty years from their respective dates; be in such form either
coupon or registered, with such 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 prior redemption at such prices not
exceeding one hundred five per centum of the principal amount
thereof; and shall have
such the other terms and provisions
as
determined by the governing board receiving the proceeds and the
commission.
such The revenue bonds shall be signed by the Governor
and by the chancellor of the commission or the chair of the
governing boards authorizing the issuance thereof, under the Great
Seal of the State, attested by the Secretary of State, and the
coupons attached
thereto to the revenue bonds shall bear the
facsimile signature of the chancellor of the commission or the
chair of the appropriate governing boards.
such The revenue bonds
shall be sold in
such the manner
as the commission or governing
board determines is for the best interests of the state.
(i) The commission or governing boards may enter into trust
agreements with banks or trust companies, within or without the
state, and in
such the trust agreements or the resolutions
authorizing the issuance of
such the bonds may enter into valid and
legally binding covenants with the holders of
such the revenue bonds as to the custody, safeguarding and disposition of the
proceeds of
such the revenue bonds, the moneys in
such the special
funds, sinking funds, reserve funds or any other moneys or funds;
as to the rank and priority, if any, of different issues of revenue
bonds by the commission or governing boards under the provisions of
this section; as to the maintenance or revision of the amounts of
such the fees; as to the extent to which swap agreements, as
defined in section two-h, article two-g, chapter thirteen of this
code shall be used in connection with
such the revenue bonds,
including such provisions as payment, term, security, default and
remedy provisions as the commission shall consider necessary or
desirable, if any, under which
such the fees may be reduced; and as
to any other matters or provisions which are considered necessary
and advisable by the commission or governing boards in the best
interests of the state and to enhance the marketability of
such the
revenue bonds.
(j) After the issuance of any
of such revenue bonds, the fees
at the state institutions of higher education pledged to the
payment thereof may not be reduced as long as any of
such the
revenue bonds are outstanding and unpaid except under such terms,
provisions and conditions as shall be contained in the resolution,
trust agreement or other proceedings under which
such the revenue
bonds were issued.
such The revenue bonds
shall be are and
constitute negotiable instruments under the Uniform Commercial Code of this state; together with the interest thereon, be exempt from
all taxation by the state of West Virginia, or by any county,
school district, municipality or political subdivision thereof; and
such the revenue bonds may not be considered to be obligations or
debts of the state and the credit or taxing power of the state may
not be pledged therefor, but
such the revenue bonds shall be
payable only from the revenue pledged therefor as provided in this
section.
(k) Additional revenue bonds may be issued by the commission
or governing boards pursuant to this section and financed by
additional revenues or funds dedicated from other sources.
It is
the intent of the Legislature to authorize over a five-year period
beginning on the first day of July, two thousand four, additional
sources of revenue and funds to effect such funding for capital
improvement.
There is hereby created in the State Treasury a
special revenue fund known as the Community and Technical College
Capital Improvement Fund into which shall be deposited the amounts
specified in subsection (j), 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 the commission for community and
technical college capital improvements.
(l) Funding of systemwide and campus-specific revenue bonds under any other section of this code is
hereby continued and
authorized pursuant to the terms of this section. Revenues of any
state institution of higher education pledged to the repayment of
any revenue bonds issued pursuant to this code shall remain
pledged.
(m) Any revenue bonds for state institutions of higher
education proposed to be issued under this section or other
sections of this code first must be approved by the commission.
(n) Revenue bonds issued pursuant to this code may be issued
by the commission or governing boards, either singly or jointly.
(o) Fees pledged for repayment of revenue bonds issued under
this section or article twelve-b, chapter eighteen prior to the
effective date of this section shall be transferred to the
commission in a manner prescribed by the commission. The commission
shall have the authority to may transfer funds from the accounts of
institutions pledged for the repayment of revenue bonds issued
prior to the effective date of this section or issued subsequently
by the commission upon the request of institutions, if an
institution fails to transfer the pledged revenues to the
commission in a timely manner.
(p) Effective the first day of July, two thousand four, the
capital and auxiliary capital fees authorized by this section and
section one of this article are in lieu of any other fees set out
in this code for capital and auxiliary capital projects to benefit public higher education institutions. Notwithstanding any other
provisions of this code to the contrary, in the event any capital,
tuition, registration or auxiliary fees are pledged to the payment
of any revenue bonds issued pursuant to any general bond
resolutions of the commission, any of its predecessors or any
institution, adopted prior to the effective date of this section,
such fees shall remain in effect in amounts not less than the
amounts in effect as of that date, until
such time as the revenue
bonds payable from any of
such the fees have been paid or the
pledge of
such the fees is otherwise legally discharged.
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 continued a special revenue fund in the State
Treasury which shall be designated and known as the State Lottery
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 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 may be allocated to and may be disbursed as
necessary for fund operation and administration expenses:
Provided, That for the period beginning the first day of the month
following the first passage of a referendum election held pursuant
to section seven, article twenty-two-c of this chapter and for
eighteen months thereafter, not more than seventeen 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 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,
and then satisfying the requirements for funds dedicated
to the Community and Technical College Capital Improvement Fund in
subsection (j) of this section to retire the bonds for community
and technical college capital improvements authorized to be issued
pursuant to section eight, article ten, chapter eighteen-b of this code, any and all remaining funds in the State Lottery Fund shall
be made available to pay debt service in connection with any
revenue bonds issued pursuant to section eighteen-a of this
article, if and to the extent needed for such purpose from time to
time. 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) (k) of this section; and (4) the Division of Natural Resources
created in section three, article one, chapter twenty of this code
and the West Virginia Development Office as created in section one,
article two, chapter five-b of this code, in accordance with
subsection
(k) (l) of this section. No transfer to any account
other than the School Building Debt Service Account, the Education,
Arts, Sciences and Tourism Debt Service Fund,
the Community and
Technical College Capital Improvement Fund, the Economic
Development Project Fund created under section eighteen-a, article
twenty-two, chapter twenty-nine of this code, or any fund from
which debt service is paid under subsection (c), section eighteen-a
of this article 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, the State Building Commission,
the
Higher Education Policy Commission, the Economic Development
Authority or which are otherwise secured by lottery proceeds. No
additional transfer may 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
and the Higher
Education Policy Commission which are secured by net profits.
(g) There is 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 may 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, as long
as revenue bonds or refunding bonds are outstanding, 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 may 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 profits shall become
available for debt service on additional school improvement bonds
as a first priority from the net profits of the lottery or may at
the discretion of the authority be placed into the School
Construction Fund created pursuant to the provisions of section
six, article nine-d, chapter eighteen of this code.
(i) Beginning on or before the twenty-eighth day of July, one
thousand nine hundred ninety-six, and continuing on or before the
twenty-eighth day of each succeeding month thereafter, as long as
revenue bonds or refunding bonds are outstanding, 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 may the monthly amount
allocated exceed one million dollars nor may 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.
When the bonds, secured by profits from the
lottery and deposited in the Education, Arts, Sciences and Tourism
Debt Service Fund, mature, the profits shall become available for
debt service on additional bonds as a second priority from the net
profits of the lottery.
(j) Beginning on or before the twenty-eighth day of July, two thousand eight, and continuing on or before the twenty-eighth day
of each succeeding month thereafter, as long as revenue bonds or
refunding bonds are outstanding, the lottery director shall
allocate to the Community and Technical College Capital Improvement
Fund, created pursuant to section eight, article ten, chapter
eighteen-b of this code, as a third priority from 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, two
thousand eight, as certified by the lottery director in accordance
with the provisions of that section. In no event may the monthly
amount allocated exceed five hundred thousand dollars nor may the
total allocation paid to the Community and Technical Capital
Improvement 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 five million dollars. In the
event there are insufficient funds available in any month to
transfer the amount required pursuant to this subsection to the
Community and Technical College Capital Improvement Fund, the
deficiency shall be added to the amount transferred in the next
succeeding month in which revenues are available to transfer the
deficiency.
(1) A third-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 exceeding
five million dollars annually, may be granted by the Higher
Education Policy Commission in favor of the bonds it issues which
are secured by the net lottery profits. When the bonds secured by
the profits from the lottery and deposited in the Education, Arts,
Sciences and Tourism Debt Service Fund as provided in subsection
(i) of this section mature, the bonds issued by the Higher
Education Policy Commission for which lottery profits are pledged
as provided in this subsection shall be considered to have a
second-in priority lien on the net profits deposited in the State
Lottery Fund.
(2) When the community and technical college capital
improvement bonds secured by profits from the lottery and deposited
in the Community and Technical College Capital Improvement Fund
mature, the profits shall become available for debt service on
additional community and technical college capital improvement
bonds as a second priority from the net profits of the lottery.
(3) The Council for Community and Technical College Education
shall approve all community and technical college capital
improvement plans prior to the distribution of bond proceeds.
(j) (k) There is 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 amounts 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 be distributed in the manner provided below and
may 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 any senior citizens medical care and other
programs it considers beneficial to the citizens of this state.
(k) (l) The Division of Natural Resources and the West
Virginia Development Office, as appropriated by the Legislature,
may use the amounts allocated to them pursuant to subsection (f) of
this section for one or more of the following purposes: (1) The
payment of any or all of the costs incurred in the development,
construction, reconstruction, maintenance or repair of any project
or recreational facility, as these terms are defined in section
four, article five, chapter twenty of this code, pursuant to the
authority granted to it under article five, chapter twenty of this
code; (2) the payment, funding or refunding of the principal of,
interest on or redemption premiums on any bonds, security interests or notes issued by the parks and recreation section of the Division
of Natural Resources under article five, chapter twenty of this
code; or (3) the payment of any advertising and marketing expenses
for the promotion and development of tourism or any tourist
facility or attraction in this state.