Introduced Version
Senate Bill 191 History
OTHER VERSIONS -
Committee Substitute (1)
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Senate Bill No. 191
(By Senators Kessler (Mr. President) and M. Hall,
By Request of the Executive)
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[Introduced February 15, 2013; referred to the Committee on
Finance .]
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A BILL to amend and reenact §11B-2-20 of the Code of West Virginia,
1931, as amended; to amend said code by adding thereto a new
section, designated §11B-2-20a; to amend and reenact §17-3-1
of said code; and to amend and reenact §31-15A-9 of said code,
all relating to the Revenue Shortfall Reserve Fund, the
Revenue Shortfall Reserve Fund - Part B and the creation of a
West Virginia Infrastructure Modernization and Development
Special Revenue Fund; specifying maximum aggregate funding
amount for the Revenue Shortfall Reserve Fund; providing that
interest and other earnings on Revenue Shortfall Reserve Fund
- Part B be dedicated to and expended for and in support of
the federal-state Medicaid program authorized by the
Legislature or mandated by the federal government; providing that, in commencing and executing the provisions of this
subdivision, the West Virginia Investment Management Board is
not and shall not be obligated to sell any investments at a
loss or otherwise take any action not in furtherance of its
fiduciary duties and obligations in respect of funds and
investments under its management and supervision; creating the
West Virginia Infrastructure Modernization and Development
Special Revenue Fund in the State Treasury; specifying the
funding source for the West Virginia Infrastructure
Modernization and Development Special Revenue Fund; specifying
use of funds in the West Virginia Infrastructure Modernization
and Development Special Revenue Fund; providing ability of
State Road Fund to accept and expend funds transferred from
the West Virginia Infrastructure Modernization and Development
Special Revenue Fund; and providing ability of West Virginia
Infrastructure Fund to accept and expend funds transferred
from the West Virginia Infrastructure Modernization and
Development Special Revenue Fund.
Be it enacted by the Legislature of West Virginia:
That §11B-2-20 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 §11B-2-20a; that §17-3-1 of said code be amended and reenacted; and that §31-15A-9 of said code be
amended and reenacted, all to read as follows:
CHAPTER 11B. DEPARTMENT OF REVENUE.
ARTICLE 2. STATE BUDGET OFFICE.
§11B-2-20. Reduction of appropriations; powers of Governor;
Revenue Shortfall Reserve Fund and permissible
expenditures therefrom.
(a) Notwithstanding any provision of this section, the
Governor may reduce appropriations according to any of the methods
set forth in sections twenty-one and twenty-two of this article.
The Governor may, in lieu of imposing a reduction in
appropriations, request an appropriation by the Legislature from
the Revenue Shortfall Reserve Fund established in this section.
(b) A Revenue Shortfall Reserve Fund is hereby continued
within the State Treasury. The Revenue Shortfall Reserve Fund
shall be funded continuously and on a revolving basis in accordance
with this subsection up to an aggregate amount not to exceed
thirteen fifteen percent of the total appropriations from the state
fund, general revenue, for the fiscal year just ended. The Revenue
Shortfall Reserve Fund shall be funded as set forth in this
subsection from surplus revenues, if any, in the state fund,
general revenue, as the surplus revenues may accrue from time to time. Within sixty days of the end of each fiscal year, the
secretary shall cause to be deposited into the Revenue Shortfall
Reserve Fund such amount of the first fifty percent of all surplus
revenues, if any, determined to have accrued during the fiscal year
just ended, as may be necessary to bring the balance of the Revenue
Shortfall Reserve Fund to thirteen fifteen percent of the total
appropriations from the state fund, general revenue, for the fiscal
year just ended. If at the end of any fiscal year the Revenue
Shortfall Reserve Fund is funded at an amount equal to or exceeding
thirteen fifteen percent of the state's General Revenue Fund budget
for the fiscal year just ended, then there shall be no further
deposit by the secretary under the provisions of this section of
any surplus revenues as set forth in this subsection until that
time the Revenue Shortfall Reserve Fund balance is less than
thirteen fifteen percent of the total appropriations from the state
fund, general revenue.
(c) Not earlier than November 1 of each calendar year, if the
state's fiscal circumstances are such as to otherwise trigger the
authority of the Governor to reduce appropriations under this
section or section twenty-one or twenty-two of this article, then
in that event the Governor may notify the presiding officers of
both houses of the Legislature in writing of his or her intention to convene the Legislature pursuant to section nineteen, article VI
of the Constitution of West Virginia for the purpose of requesting
the introduction of a supplementary appropriation bill or to
request a supplementary appropriation bill at the next preceding
regular session of the Legislature to draw money from the surplus
Revenue Shortfall Reserve Fund to meet any anticipated revenue
shortfall. If the Legislature fails to enact a supplementary
appropriation from the Revenue Shortfall Reserve Fund during any
special legislative session called for the purposes set forth in
this section or during the next preceding regular session of the
Legislature, then the Governor may proceed with a reduction of
appropriations pursuant to sections twenty-one and twenty-two of
this article. Should any amount drawn from the Revenue Shortfall
Reserve Fund pursuant to an appropriation made by the Legislature
prove insufficient to address any anticipated shortfall, then the
Governor may also proceed with a reduction of appropriations
pursuant to sections twenty-one and twenty-two of this article.
(d) Upon the creation of the fund, the Legislature is
authorized and may make an appropriation from the Revenue Shortfall
Reserve Fund for revenue shortfalls, for emergency revenue needs
caused by acts of God or natural disasters or for other fiscal
needs as determined solely by the Legislature.
(e) Prior to October 31, in any fiscal year in which revenues
are inadequate to make timely payments of the state's obligations,
the Governor may by executive order, after first notifying the
presiding officers of both houses of the Legislature in writing,
borrow funds from the Revenue Shortfall Reserve Fund. The amount
of funds borrowed under this subsection shall may not exceed one
and one-half percent of the general revenue estimate for the fiscal
year in which the funds are to be borrowed, or the amount the
Governor determines is necessary to make timely payment of the
state's obligations, whichever is less. Any funds borrowed
pursuant to this subsection shall be repaid, without interest, and
redeposited to the credit of the Revenue Shortfall Reserve Fund
within ninety days of their withdrawal.
(f) There is hereby created continued in the State Treasury
the Revenue Shortfall Reserve Fund - Part B. The Revenue Shortfall
Reserve Fund - Part B shall consist consists of moneys transferred
from the West Virginia Tobacco Settlement Medical Trust Fund
pursuant to the provisions of section two, article eleven-a,
chapter four of this code, repayments made of the loan from the
West Virginia Tobacco Settlement Medical Trust Fund to the
Physician's Mutual Insurance Company pursuant to the provisions of
article twenty-f, chapter thirty-three of this code, and all interest and other return earned on the moneys in the Revenue
Shortfall Reserve Fund - Part B. Moneys in the Revenue Shortfall
Reserve Fund - Part B may be expended solely for the purposes set
forth in subsection (d) of this section, subject to the following
conditions:
(1) Beginning on July 1, 2013, any and all interest and other
return earned thereon that may accrue on the moneys in the Revenue
Shortfall Reserve Fund - Part B shall be dedicated to and expended
for and in support of the federal-state Medicaid program authorized
by the Legislature or mandated by the federal government:
Provided, That in commencing and executing the provisions of this
subdivision, the West Virginia Investment Management Board is not
and shall not be obligated to sell any investments at a loss or
otherwise take any action not in furtherance of its fiduciary
duties and obligations in respect of funds and investments under
its management and supervision;
__(1) (2) No moneys in the Revenue Shortfall Reserve Fund - Part
B nor any interest or other return earned thereon may be expended
for any purpose unless all moneys in the Revenue Shortfall Reserve
Fund described in subsection (b) of this section have first been
expended, except that the interest or other return earned on moneys
in the Revenue Shortfall Reserve Fund - Part B may be expended as provided in subdivisions (2) (1) and (3) of this subsection; and
(2) (3) Notwithstanding any other provision of this section to
the contrary, the Legislature may appropriate any interest and
other return earned thereon that may accrue on the moneys in the
Revenue Shortfall Reserve Fund - Part B after June 30, 2025, for
expenditure for the purposes set forth in section three, article
eleven-a, chapter four of this code; and
(3) (4) Any appropriation made from Revenue Shortfall Reserve
Fund - Part B shall be made only in instances of revenue shortfalls
or fiscal emergencies of an extraordinary nature.
(g) Subject to the conditions upon expenditures from the
Revenue Shortfall Reserve Fund - Part B prescribed in subsection
(f) of this section, in appropriating moneys pursuant to the
provisions of this section, the Legislature may in any fiscal year
appropriate from the Revenue Shortfall Reserve Fund and the Revenue
Shortfall Reserve Fund - Part B a total amount up to, but not
exceeding, ten percent of the total appropriations from the state
fund, general revenue, for the fiscal year just ended.
(h)(1) Of the moneys in the Revenue Shortfall Reserve Fund,
$100 million, or such greater amount as may be certified as
necessary by the director of the budget for the purposes of
subsection (e) of this section, shall be made available to the West Virginia Board of Treasury Investments for management and
investment of the moneys in accordance with the provisions of
article six-c, chapter twelve of this code. All other moneys in
the Revenue Shortfall Reserve Fund shall be made available to the
West Virginia Investment Management Board for management and
investment of the moneys in accordance with the provisions of
article six, chapter twelve of this code. Any balance of the
Revenue Shortfall Reserve Fund including accrued interest and other
return earned thereon at the end of any fiscal year shall do not
revert to the general fund but shall remain in the Revenue
Shortfall Reserve Fund for the purposes set forth in this section.
(2) All of the moneys in the Revenue Shortfall Reserve Fund -
Part B shall be made available to the West Virginia Investment
Management Board for management and investment of the moneys in
accordance with the provisions of article six, chapter twelve of
this code. Any balance of the Revenue Shortfall Reserve Fund -
Part B, including accrued interest and other return earned thereon
at the end of any fiscal year, shall do not revert to the general
fund but shall remain in the Revenue Shortfall Reserve Fund - Part
B for the purposes set forth in this section.
§11B-2-20a. West Virginia Infrastructure Modernization and
Development Special Revenue Fund and permissible expenditures therefrom.
(a) There is created in the State Treasury the West Virginia
Infrastructure Modernization and Development Special Revenue Fund.
The West Virginia Infrastructure Modernization and Development
Special Revenue Fund shall be funded on a revolving basis in
accordance with this subsection from surplus revenues, if any, in
the state fund, general revenue, as the surplus revenues may accrue
from time to time, subject to the requirements of section twenty of
this article. If at the end of any fiscal year there exists
surplus revenues in the state fund, general revenue, that accrued
during the fiscal year just ended, then the secretary shall first
cause funds to be deposited into the Revenue Shortfall Reserve Fund
pursuant to section twenty of this article. If at the end of any
fiscal year the Revenue Shortfall Reserve Fund is funded at an
amount equal to or exceeding fifteen percent of the state's General
Revenue Fund budget for the fiscal year just ended, then the
secretary shall, within sixty days of the end of such fiscal year,
cause to be deposited into the West Virginia Infrastructure
Modernization and Development Special Revenue Fund the first fifty
percent of all surplus revenues, if any, in the state fund, general
revenue, determined to have accrued during the fiscal year just
ended.
(b) On October 1 in the fiscal year beginning July 1, 2013,
and on October 1 in each subsequent fiscal year thereafter, the
secretary shall transfer: (1) Fifty percent of the balance, if any,
of the West Virginia Infrastructure Modernization and Development
Special Revenue Fund into the West Virginia Infrastructure Fund
created in section nine, article fifteen-a, chapter thirty-one of
this code to be expended in accordance with the provisions of said
article; and (2) fifty percent of the balance, if any, of the West
Virginia Infrastructure Modernization and Development Special
Revenue Fund into the State Road Fund created in section one,
article three, chapter seventeen of this code to be expended in
accordance with the provisions of that chapter.
CHAPTER 17. ROADS AND HIGHWAYS.
ARTICLE 3. STATE ROAD FUND.
§17-3-1. What constitutes fund; payments into fund; use of money
in fund.
There shall be a State Road Fund, which shall consist of the
proceeds of all state license taxes imposed upon automobiles or
other motor or steam driven vehicles; the registration fees imposed
upon all owners, chauffeurs, operators and dealers in automobiles
or other motor driven vehicles; all sums of money which may be
donated to such fund; all proceeds derived from the sale of state bonds issued pursuant to any resolution or act of the Legislature
carrying into effect the Better Roads Amendment to the Constitution
of this state, adopted in the month of November, 1964, except that
the proceeds from the sale of these bonds shall be kept in a
separate and distinct account in the State Road Fund; all proceeds
from the sale of state bonds issued pursuant to any resolution or
act of the Legislature carrying into effect the Safe Roads
Amendment of 1996 to the Constitution of this state, adopted in the
month of November, 1996, except that the proceeds from the sale of
these bonds shall be kept in a separate and distinct account in the
State Road Fund; all moneys and funds appropriated to it by the
Legislature; and all moneys allotted or appropriated by the federal
government to this state for road construction and maintenance
pursuant to any act of the Congress of the United States; the
proceeds of all taxes imposed upon and collected from any person,
firm or corporation and of all taxes or charges imposed upon and
collected from any county, district or municipality for the benefit
of the fund; the proceeds of all judgments, decrees or awards
recovered and collected from any person, firm or corporation for
damages done to, or sustained by, any of the state roads or parts
thereof; all moneys recovered or received by reason of the
violation of any contract respecting the building, construction or maintenance of any state road; all penalties and forfeitures
imposed, recovered or received by reason thereof; all funds
transferred in accordance with section twenty-a, article two,
chapter eleven-b of this code; and any and all other moneys and
funds appropriated to, imposed and collected for the benefit of
such fund, or collected by virtue of any statute and payable to
such fund: Provided, That notwithstanding any provisions of this
code to the contrary, fifty cents of every license fee paid
pursuant to the provisions of subdivision (2), subsection (a),
section eight, article two, chapter seventeen-b of this code shall
be paid to the special fund established pursuant to the provisions
of subsection (a), section twelve, article two, chapter three of
this code.
When any money is collected from any of the sources aforesaid,
it shall be paid into the State Treasury by the officer whose duty
it is to collect and account for the same, and credited to the
State Road Fund, and shall may be used only for the purposes named
in this chapter, which are: (a) To pay the principal and interest
due on all state bonds issued for the benefit of said fund, and set
aside and appropriated for that purpose; (b) to pay the expenses of
the administration of the road department; and (c) to pay the cost
of maintenance, construction, reconstruction and improvement of all state roads.
CHAPTER 31. CORPORATIONS.
ARTICLE 15A. WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT
COUNCIL.
§31-15A-9. Infrastructure fund; deposits in fund; disbursements
to provide loans, loan guarantees, grants and other
assistance; loans, loan guarantees, grants and
other assistance shall be subject to assistance
agreements; West Virginia Infrastructure Lottery
Revenue Debt Service Fund; use of funds for
projects.
(a) The Water Development Authority shall create and establish
a Special Revolving Fund of moneys made available by appropriation,
grant, contribution or loan to be known as the West Virginia
Infrastructure Fund. This fund shall be governed, administered and
accounted for by the directors, officers and managerial staff of
the Water Development Authority as a special purpose account
separate and distinct from any other moneys, funds or funds owned
and managed by the Water Development Authority. The Infrastructure
Fund shall consist of subaccounts, as deemed necessary by the
council or the Water Development Authority, for the deposit of: (1)
Infrastructure revenues; (2) any appropriations, grants, gifts, contributions, loan proceeds or other revenues received by the
Infrastructure Fund from any source, public or private; (3) amounts
received as payments on any loans made by the Water Development
Authority to pay for the cost of a project or infrastructure
project; (4) insurance proceeds payable to the Water Development
Authority or the Infrastructure Fund in connection with any
infrastructure project or project; (5) all income earned on moneys
held in the Infrastructure Fund; (6) all funds deposited in
accordance with section four of article fifteen-b; and (7) all
proceeds derived from the sale of bonds issued pursuant to article
fifteen-b of this chapter; and (8) all funds transferred in
accordance with section twenty-a, article two, chapter eleven-b of
this code.
Any money collected pursuant to this section shall be paid
into the West Virginia Infrastructure Fund by the state agent or
entity charged with the collection of the same, credited to the
Infrastructure Fund, and used only for purposes set forth in this
article or article fifteen-b.
Amounts in the Infrastructure Fund shall be segregated and
administered by the Water Development Authority separate and apart
from its other assets and programs. Amounts in the Infrastructure
Fund may not be transferred to any other fund or account or used, other than indirectly, for the purposes of any other program of the
Water Development Authority, except that the Water Development
Authority may use funds in the Infrastructure Fund to reimburse
itself for any administrative costs incurred by it and approved by
the council in connection with any loan, loan guarantee, grant or
other funding assistance made by the Water Development Authority
pursuant to this article.
(b) Notwithstanding any provision of this code to the
contrary, amounts in the Infrastructure Fund shall be deposited by
the Water Development Authority in one or more banking
institutions: Provided, That any moneys so deposited shall be
deposited in a banking institution located in this state. The
banking institution shall be selected by the Water Development
Authority by competitive bid. Pending the disbursement of any money
from the Infrastructure Fund as authorized under this section, the
Water Development Authority shall invest and reinvest the moneys
subject to the limitations set forth in article eighteen, chapter
thirty-one of this code.
(c) To further accomplish the purposes and intent of this
article and article fifteen-b of this chapter, the Water
Development Authority may pledge infrastructure revenues and from
time to time establish one or more restricted accounts within the Infrastructure Fund for the purpose of providing funds to guarantee
loans for infrastructure projects or projects: Provided, That for
any fiscal year the Water Development Authority may not deposit
into the restricted accounts more than twenty percent of the
aggregate amount of infrastructure revenues deposited into the
Infrastructure Fund during the fiscal year. No loan guarantee shall
may be made pursuant to this article unless recourse under the loan
guarantee is limited solely to amounts in the restricted account or
accounts. No person shall have any recourse to any restricted
accounts established pursuant to this subsection other than those
persons to whom the loan guarantee or guarantees have been made.
(d) Each loan, loan guarantee, grant or other assistance made
or provided by the Water Development Authority shall be evidenced
by a loan, loan guarantee, grant or assistance agreement between
the Water Development Authority and the project sponsor to which
the loan, loan guarantee, grant or assistance shall be made or
provided, which agreement shall include, without limitation and to
the extent applicable, the following provisions:
(1) The estimated cost of the infrastructure project or
project, the amount of the loan, loan guarantee or grant or the
nature of the assistance, and in the case of a loan or loan
guarantee, the terms of repayment and the security therefor, if any;
(2) The specific purposes for which the loan or grant proceed
shall be expended or the benefits to accrue from the loan guarantee
or other assistance, and the conditions and procedure for
disbursing loan or grant proceeds;
(3) The duties and obligations imposed regarding the
acquisition, construction, improvement or operation of the project
or infrastructure project; and
(4) The agreement of the governmental agency to comply with
all applicable federal and state laws, and all rules and
regulations issued or imposed by the Water Development Authority or
other state, federal or local bodies regarding the acquisition,
construction, improvement or operation of the infrastructure
project or project and granting the Water Development Authority the
right to appoint a receiver for the project or infrastructure if
the project sponsor should default on any terms of the agreement.
(e) Any resolution of the Water Development Authority
approving loan, loan guarantee, grant or other assistance shall
include a finding and determination that the requirements of this
section have been met.
(f) The interest rate on any loan to governmental, quasi-
governmental or not-for-profit project sponsors for projects made pursuant to this article shall may not exceed three percent per
annum. Due to the limited availability of funds available for loans
for projects, it is the public policy of this state to prioritize
funding needs to first meet the needs of governmental, quasi-
governmental and not-for-profit project sponsors and to require
that loans made to for-profit entities shall bear interest at the
current market rates. Therefore, no loan may be made by the council
to a for-profit entity at an interest rate which is less than the
current market rate at the time of the loan agreement.
(g) The Water Development Authority shall cause an annual
audit to be made by an independent certified public accountant of
its books, accounts and records, with respect to the receipts,
disbursements, contracts, leases, assignments, loans, grants and
all other matters relating to the financial operation of the
Infrastructure Fund, including the operating of any subaccount
within the Infrastructure Fund. The person performing such audit
shall furnish copies of the audit report to the commissioner of
finance and administration, where they shall be placed on file and
made available for inspection by the general public. The person
performing such the audit shall also furnish copies of the audit
report to the Legislature's Joint Committee on Government and
Finance.
(h) There is hereby created continued in the Water Development
Authority a separate, special account which shall be designated and
known as the West Virginia Infrastructure Lottery Revenue Debt
Service Fund, into which shall be deposited annually for the fiscal
year beginning July 1, 2011, and each fiscal year thereafter, the
first $6 million transferred pursuant to section eighteen-d,
article twenty-two, chapter twenty-nine of this code and any other
funds provided therefor: Provided, That such the deposits and
transfers are not subject to the reservations of funds or
requirements for distributions of funds established by sections ten
and eleven of this article. Moneys in the West Virginia
Infrastructure Lottery Revenue Debt Service Fund shall be used to
pay debt service on bonds or notes issued by the Water Development
Authority for watershed compliance projects as provided in section
seventeen-b of this article, and to the extent not needed to pay
debt service, for the design or construction of improvements for
watershed compliance projects. Moneys in the West Virginia
Infrastructure Lottery Revenue Debt Service Fund not expended at
the close of the fiscal year do not lapse or revert to the general
fund but are carried forward to the next fiscal year.
NOTE: The purpose of this bill is to increase the maximum aggregate funding amount from thirteen percent to fifteen percent
for the Revenue Shortfall Reserve Fund; dedicate all interest and
other earnings on moneys in Revenue Shortfall Reserve Fund - Part
B to the state's Medicaid program; create the West Virginia
Infrastructure Modernization and Development Special Revenue Fund
in the State Treasury; specify the funding source for the West
Virginia Infrastructure Modernization and Development Special
Revenue Fund; specify the use of funds in the West Virginia
Infrastructure Modernization and Development Special Revenue Fund;
provide ability of State Road Fund to accept and expend funds
transferred from the West Virginia Infrastructure Modernization and
Development Special Revenue Fund; and provide ability of West
Virginia Infrastructure Fund to accept and expend funds transferred
from the West Virginia Modernization and Development Special
Revenue Fund.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§11B-2-20a is new; therefore, strike-throughs and underscoring
have been omitted.