ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 449
(By Senators Tomblin, Mr. President, and Boley,
By Request of the Executive)
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[Originating in the Committee on Finance;
reported February 28, 1996.]
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A BILL to amend and reenact section eighteen, article twenty-two,
chapter twenty-nine of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; and to amend
article fifteen, chapter thirty-one of said code by adding
thereto a new section, designated section six-b, all
relating to developing a West Virginia educational center
for arts and sciences; allocation of state lottery fund;
dedicating lottery proceeds for financing revenue bonds to
be issued by the economic development authority; creating a
special revenue fund in the state treasury for the economic
development authority; permitting the economic development authority to pledge funds as security for payment of revenue
bonds; providing for issuance of revenue bonds; specifying
use of bond proceeds to fund development of an educational
center for arts and sciences; providing for annual
certification of amounts needed to pay principal, interest
and coverage ratios for each fiscal year on bonds to be
issued by the economic development authority; allocating and
limiting dollar amounts of lottery proceeds that may be used
to provide debt service on such bonds; specifying uses of
moneys in the West Virginia center for arts and sciences
debt service fund; and providing for payment of certain
lottery proceeds into the fund for use in bond financing.
Be it enacted by the Legislature of West Virginia:
That article one, chapter twenty-nine of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
fifteen; that section eighteen, article twenty-two of said
chapter be amended and reenacted; and that article fifteen,
chapter thirty-one of said code be amended by adding thereto a
new section, designated section six-b, all to read as follows:
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 1. DIVISION OF CULTURE AND HISTORY.
§29-1-15. Student enrichment transportation fund.
There is hereby created a special fund in the state treasury
which shall be designated and known as the "student enrichment
fund". The fund shall consist of all appropriations to the fund,
all interest earned from the investment of the fund and any
gifts, grants or contributions received by the fund.
The secretary of education and the arts, in consultation
with the commissioner of culture and history, shall administer
the fund pursuant to standards and criteria specifically designed
to provide for the allocation and distribution of funds to
transport school children in this state to the capitol city and
its environs for the purpose of promoting their educational and
cultural enrichment.
The standards and criteria established for the allocation of
these funds shall be established by legislative rule, promulgated
pursuant to the provisions of article three, chapter twenty-nine-
a of this code.
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 created 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
herein provided
for in this section for the purposes
stated
herein 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.
The director is authorized to expend the necessary
percentage of the amount allocated as net profit, not to exceed
six percent of the gross amount received, for the purposes of
entering into contractual arrangements for the acquisition,
financing, lease and lease-purchase, and other financing
transactions, of lottery goods and services, including tickets,
equipment, machinery, electronic computer systems and terminals,
and supplies and maintenance therefor, for the first thirty-six
months of operation, and may apportion the costs, expenses and
expenditures related thereto among the commission, vendor or
vendors and licensed lottery sales agents. In the event that the
percentage allotted for operations and administration generates a surplus, the surplus
will 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 West Virginia center for arts and sciences
debt service fund in subsection (i) of this section to retire the
twenty-five year bonds authorized to be issued pursuant to
section six-b, article fifteen, chapter thirty-one of this code,
the Legislature shall annually appropriate all of the remaining
amounts allocated as net profits
above in subsection (e) of this
section, in such proportions as it
deems 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 as created in section six, article nine-d,
chapter eighteen of this code; (3) the lottery senior citizens
fund created in subsection
(i)(j) of this section; and (4) the
commerce division bureau of commerce created in
article one,
chapter five-b section one, article two, chapter five-f of this
code, in accordance with subsection
(j)(k) of this section:
Provided, That no transfer to any account other than the school
building debt service account
and the West Virginia center for
arts and sciences debt service account 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
or the economic
development authority which are secured by lottery proceeds:
Provided, however, That no additional transfer shall be made to
any account other than the school building debt service account
and the West Virginia center for arts and sciences debt service
account 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 economic development authority which are secured by net profits.
(g) There is hereby created 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
amounts 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 in this
subsection 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 such educational programs as it considers
beneficial to the citizens of this state.
(h) Beginning on or before the twenty-eighth day of July,
one thousand nine hundred ninety-four, and continuing on or before the twenty-eighth day of each succeeding month thereafter
through the thirtieth 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 said
section
six, article nine-d, chapter eighteen of this code:
Provided, That in no event shall
said the monthly amount exceed
one million eight hundred thousand dollars:
Provided, however,
That in no event shall the total allocation of
said 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 as
aforesaid provided in section six, article nine-d,
chapter eighteen of this code, or eighteen million dollars:
Provided further, That 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
said the deficiency:
And provided further,
That 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 authority in
favor of the bonds issued by the authority which are secured by
the net lottery profits.
(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 through
the thirtieth day of June, two thousand twenty-one, the lottery
director shall allocate to the West Virginia center for arts and
sciences debt service fund created pursuant to the provisions of
section six-b, article fifteen, chapter thirty-one 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 section six-b, article fifteen,
chapter thirty-one of this code: Provided, That in no event
shall the monthly amount exceed two hundred fifty thousand
dollars: Provided, however, That in no event shall the total
allocation of the net profits to be paid into the West Virginia
center for arts and sciences 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 as provided in section six-b, article fifteen, chapter
thirty-one of this code, or two million five hundred thousand
dollars: Provided further, That 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
West Virginia center for arts and sciences 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: And provided further, That 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 three million seven hundred
fifty thousand dollars annually, may be granted by the economic
development authority in favor of the bonds issued by the
economic development authority which are secured by the net
lottery profits.
(i)(j) There is hereby created 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 disbursed in the manner provided
below in this subsection and 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.
(j)(k) The
commerce division bureau of commerce may use the
amounts allocated to it 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
such those terms are defined
in section
thirteen-a four, article
one five, chapter
five-b
twenty of this code, pursuant to the authority granted to it
under
said 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
commerce
division division of natural resources under article
one five,
chapter
five-b 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.
CHAPTER 31. CORPORATIONS.
ARTICLE 15. WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY.
§31-15-6b. Special power of authority to construct and lease a
West Virginia educational center for arts and
sciences; limitations; economic development
authority authorized to issue revenue bonds; fund
created; use of funds to pay for development of a
West Virginia educational center for arts and
sciences.
(a) The Legislature finds and declares that in order to
attract new business and industry to this state, to retain
existing business and industry providing the citizens of this
state with economic security, to advance the business prosperity
and economic welfare of this state and to assure that adequate
infrastructure and facilities are available for: (i) Hands-on
arts and science training for the youth of West Virginia; (ii)
programs using the performing arts as an educational tool; and
(iii) state-of-the-art educational opportunities for all citizens
of this state, it is necessary that public financial support be provided for constructing and equipping a centrally located West
Virginia educational center for arts and sciences.
(b) The economic development authority may, by resolution,
in accordance with the applicable provisions of this article,
issue revenue bonds of the authority from time to time, to pay
for a portion of the cost of constructing and equipping a West
Virginia center for arts and sciences or to refund, at the
discretion of the authority, the bonds:
Provided, That the bond
proceeds shall not exceed forty percent of the total project
cost, including site acquisition, capital costs and endowments
for operation and maintenance:
Provided, however, That the
principal amount of the bonds shall not exceed twenty-five
million dollars:
Provided further, That revenue bonds issued on
or after the first day of January, one thousand nine hundred
ninety-six, which are secured by lottery proceeds shall mature at
such time or times not exceeding twenty-five 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 subsection (c) of this section
for the payment.
(c) There is hereby created in the state treasury a special
revenue fund named the "West Virginia center for arts and
sciences debt service fund" into which shall be deposited on and
after the first day of July, one thousand nine hundred
ninety-six, 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
section. The authority may further provide in the resolution and
in the trust agreement for priorities on the revenues paid into
the West Virginia center for arts and sciences debt service fund
as may be necessary for the protection of the prior rights of the
holders of bonds issued at different times under the provisions
of this section. On or prior to the first day of May of each
year, commencing the first day of May, one thousand nine hundred
ninety-six, 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
or refunding revenue bonds issued pursuant to this section, and for which moneys deposited in the West Virginia center for arts
and sciences 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
section, 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 section, any
balance remaining in the West Virginia center for arts and
sciences debt service fund may be used for the redemption of any
of the outstanding bonds issued under this section 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.
(d) The authority is hereby empowered to: (i) Acquire by
purchase or lease real property to be used as a site for a West
Virginia educational center for arts and sciences; (ii) use the
proceeds of the bonds authorized by this section to pay a portion
of the costs of constructing and equipping a West Virginia center for arts and sciences located on that site; and (iii) enter into
a long-term lease agreement with a nonprofit corporation
organized under the laws of this state for operation and
maintenance of the center:
Provided, That such nonprofit
corporation shall, as consideration for the long-term lease
agreement, complete the construction and equipping of the center
and demonstrate to the satisfaction of the authority its
financial ability to operate and maintain the center during the
term of the lease agreement.