H. B. 3333
(By Delegate Spencer)
[Introduced March 25, 2005; referred to the
Committee on Finance.]
A BILL to amend and reenact §29-22-18 of the Code of West Virginia,
1931, as amended, relating to appropriating money from the
State Lottery Fund to the Bureau of Senior Services to pay for
delegates to National Silver Haired Congress meetings.
Be it enacted by the Legislature of West Virginia:
That §29-22-18 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
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 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 January,
two thousand two, through the thirtieth day of June, two thousand
three, 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, 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) 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, the Education, Arts,
Sciences and Tourism Debt Service 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 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 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 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) 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 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 such senior citizens medical
care and other programs as it considers beneficial to the citizens
of this state. The Legislature shall also annually appropriate
funds to the Bureau of Senior Services to pay for five members of
the Silver Haired Legislature who have been elected by the Silver
Haired Legislature to attend National Silver Haired Congress
meetings.
(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.
NOTE: The purpose of this bill is to appropriate money from
the State Lottery Fund to the Bureau of Senior Services to pay for
delegates to National Silver Haired Congress meetings.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.