Senate Bill No. 297
(By Senators Tomblin, Mr. President, and Caruth,
By Request of the Executive)
____________
[Introduced January 22, 2008; referred to the Committee on
Education; and then to the Committee on Finance.]
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A BILL to amend and reenact §18-9D-2, §18-9D-6, §18-9D-8, §18-9D-13
and §18-9D-15 of the Code of West Virginia, 1931, as amended;
to amend said code by adding thereto a new section, designated
§18-9D-4b; and to amend and reenact §29-22-18a of said code,
all relating generally to the School Building Authority;
modifying definitions and qualifications of construction
projects and major improvement projects; authorizing the
School Building Authority to issue bonds by using moneys
deposited in the Excess Lottery School Building Debt Service
Fund from the State Excess Lottery Fund; providing that moneys
from the State Excess Lottery Fund are deposited into the
Excess Lottery School Building Debt Service Fund; and
clarifying the powers of the authority in issuing bonds.
Be it enacted by the Legislature of West Virginia:
That §18-9D-2, §18-9D-6, §18-9D-8, §18-9D-13 and §18-9D-15 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 §18-9D-4b; and that §29-22-18a of said code be
amended and reenacted, all to read as follows:
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-2. Definitions.
For the purposes of this article, unless a different meaning
clearly appears from the context:
(1) "Authority" means the School Building Authority of West
Virginia;
(2) "Bonds" means bonds issued by the authority pursuant to
this article;
(3) "Construction project" means a project in the furtherance
of a facilities plan with a cost greater than
five hundred thousand
one million dollars for the new construction, expansion or major
renovation of facilities, buildings and structures for school
purposes, including:
(A) The acquisition of land for current or future use in
connection with the construction project;
(B) New or substantial upgrading of existing equipment,
machinery and furnishings;
(C) Installation of utilities and other similar items related
to making the construction project operational;
(D) Construction project does not include such items as books,
computers or equipment used for instructional purposes; fuel;
supplies; routine utility services fees; routine maintenance costs;
ordinary course of business improvements; other items which are
customarily considered to result in a current or ordinary course of
business operating charge or a major improvement project;
(4) "Cost of project" means the cost of construction,
expansion, renovation, repair and safety upgrading of facilities,
buildings and structures for school purposes; the cost of land,
equipment, machinery, furnishings, installation of utilities and
other similar items related to making the project operational; and
the cost of financing, interest during construction, professional
service fees and all other charges or expenses necessary,
appurtenant or incidental to the foregoing, including the cost of
administration of this article;
(5) "Facilities plan" means the ten-year countywide
comprehensive educational facilities plan established by a county
board in accordance with guidelines adopted by the authority to
meet the goals and objectives of this article that:
(A) Addresses the existing school facilities and facility
needs of the county to provide a thorough and efficient education in accordance with the provisions of this code and policies of the
state board;
(B) Best serves the needs of individual students, the general
school population and the communities served by the facilities;
(C) Includes the school major improvement plan;
(D) Includes the county board's school access safety plan
required by section three, article nine-f of this chapter;
(E) Is updated annually to reflect projects completed, current
enrollment projections and new or continuing needs; and
(F) Is approved by the state board and the authority prior to
the distribution of state funds pursuant to this article to any
county board or other entity applying for funds;
(6) "Project" means a construction project or a major
improvement project;
(7) "Region" means the area encompassed within and serviced by
a regional educational service agency established pursuant to
section twenty-six, article two of this chapter;
(8) "Revenue" or "revenues" means moneys:
(A) Deposited in the School Building Capital Improvements Fund
pursuant to section ten, article nine-a of this chapter;
(B) Deposited in the School Construction Fund pursuant to
section thirty, article fifteen, chapter eleven of this code and
section eighteen, article twenty-two, chapter twenty-nine of this code;
(C) Deposited in the School Building Debt Service Fund
pursuant to section eighteen, article twenty-two, chapter
twenty-nine of this code;
(D) Deposited in the School Major Improvement Fund pursuant to
section thirty, article fifteen, chapter eleven of this code;
(E) Received, directly or indirectly, from any source for use
in any project completed pursuant to this article;
and
(F) Received by the authority for the purposes of this
article;
and
(G) Deposited in the Excess Lottery School Building Debt
Service Fund pursuant to section eighteen-a, article twenty-two,
chapter twenty-nine of this code;
(9) "School major improvement plan" means a ten-year school
maintenance plan that:
(A) Is prepared by a county board in accordance with the
guidelines established by the authority and incorporated in its
Countywide Comprehensive Educational Facilities Plan, or is
prepared by the state board or the administrative council of an
area vocational educational center in accordance with the
guidelines if the entities seek funding from the authority for a
major improvement project;
(B) Addresses the regularly scheduled maintenance for all school facilities of the county or under the jurisdiction of the
entity seeking funding;
(C) Includes a projected repair and replacement schedule for
all school facilities of the county or of entity seeking funding;
(D) Addresses the major improvement needs of each school
within the county or under the jurisdiction of the entity seeking
funding; and
(E) Is required prior to the distribution of state funds for
a major improvement project pursuant to this article to the county
board, state board or administrative council; and
(10) "School major improvement project" means a project with
a cost greater than fifty thousand dollars and less than
five
hundred thousand one million dollars for the renovation, expansion,
repair and safety upgrading of existing school facilities,
buildings and structures, including the substantial repair or
upgrading of equipment, machinery, building systems, utilities and
other similar items related to the renovation, repair or upgrading
in the furtherance of a school major improvement plan. A major
improvement project does not include such items as books, computers
or equipment used for instructional purposes; fuel; supplies;
routine utility services fees; routine maintenance costs; ordinary
course of business improvements; or other items which are
customarily considered to result in a current or ordinary course of business operating charge.
§18-9D-4b. School Building Authority authorized to issue bonds and
pay debt service on bonds with funds distributed from
State Excess Lottery Fund.
The School Building Authority is expressly authorized to issue
bonds and pay debt service on bonds pursuant to the provisions of
this article with funds distributed from the State Excess Lottery
Fund under section eighteen-a, article twenty-two, chapter
twenty-nine of this code and deposited into the Excess Lottery
School Building Debt Service Fund.
§18-9D-6. School Building Capital Improvements Fund in State
Treasury; School Construction Fund in State Treasury;
School Building Debt Service Fund in State Treasury;
School Improvement Fund in State Treasury;
collections to be paid into special funds; Excess
Lottery School Building Debt Service Fund in State
Treasury; authority to pledge the collections as
security for refunding revenue bonds; authority to
finance projects on a cash basis.
(a) There is continued in the State Treasury a School Building
Capital Improvements Fund to be expended by the authority as
provided in this article. The School Building Capital Improvements
Fund shall be an interest-bearing account with interest credited to and deposited in the School Building Capital Improvements Fund and
expended in accordance with the provisions of this article.
The School Building Authority may pledge all or any part of
the revenues paid into the School Building Capital Improvements
fund that are needed to meet the requirements of any revenue bond
issue or issues authorized by this article prior to the twentieth
day of July, one thousand nine hundred ninety-three, or revenue
bonds issued to refund revenue bonds issued prior to that date,
including the payment of principal of, interest and redemption
premium, if any, on the revenue bonds and the establishing and
maintaining of a reserve fund or funds for the payment of the
principal of, interest and redemption premium, if any, on the
revenue bond issue or issues when other moneys pledged may be
insufficient for the payment of the principal, interest and
redemption premium, including any additional protective pledge of
revenues that the authority in its discretion has provided by
resolution authorizing the issuance of the bonds or in any trust
agreement made in connection with the bond issue. Additionally,
the authority may provide in the resolution and in the trust
agreement for priorities on the revenues paid into the School
Building Capital Improvements Fund that are necessary for the
protection of the prior rights of the holders of bonds issued at
different times under the provisions of this article.
Any balance remaining in the School Building Capital
Improvements Fund after the authority has issued bonds authorized
by this article and after the requirements of all funds, including
reserve funds established in connection with the bonds issued prior
to the twentieth day of July, one thousand nine hundred
ninety-three, pursuant to this article have been satisfied may be
used for the redemption of any of the outstanding bonds issued
under this article which by their terms are then redeemable, or for
the purchase of the bonds at the market price, but not exceeding
the price, if any, at which the bonds are in the same year
redeemable and all bonds redeemed or purchased shall immediately be
canceled and shall not again be issued.
The School Building Authority, in its discretion, may use the
moneys in the School Building Capital Improvements Fund to finance
the cost of projects authorized in accordance with the provisions
of section sixteen of this article on a cash basis. Any pledge of
moneys in the fund for revenue bonds issued prior to the twentieth
day of July, one thousand nine hundred ninety-three, is a prior and
superior charge on the fund over the use of any of the moneys in
the fund to pay for the cost of any project on a cash basis
:
Provided, That any expenditures from the fund, other than for the
retirement of revenue bonds, may only be made by the authority in
accordance with the provisions of this article.
(b) There is continued in the State Treasury a special revenue
fund named the School Building Debt Service Fund into which shall
be deposited 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 article
for
which moneys deposited in the School Building Debt Service Fund
have been pledged by the authority: Provided, That deposited
moneys may not be pledged to the repayment of any revenue bonds
issued prior to the first day of January, one thousand nine hundred
ninety-four, or with respect to revenue bonds issued for the
purpose of refunding revenue bonds issued prior to the first day of
January, one thousand nine hundred ninety-four. Additionally, the
authority may provide in the resolution and in the trust agreement
for priorities on the revenues paid into the School Building Debt
Service Fund that are necessary for the protection of the prior
rights of the holders of bonds issued at different times under the
provisions of this article. On or prior to the first day of May of
each year, 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 issued on or
after the first day of January, one thousand nine hundred ninety-four, and for which moneys deposited in the School Building
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
article
for which moneys deposited in the School Building Debt
Service Fund have been pledged 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
article, any balance remaining in the School Building Debt Service
Fund may be used for the redemption of any of the outstanding bonds
issued under this article,
for which moneys deposited in the School
Building Debt Service Fund have been pledged, 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 the bonds are redeemable and all bonds redeemed or purchased
shall be immediately canceled and shall not again be issued
:
Provided, That after the authority has issued bonds authorized by
this article and after the requirements of debt service and all
associated funds have been satisfied for the fiscal year
for which
moneys deposited in the School Building Debt Service Fund have been
pledged, including coverage and reserve funds established in
connection with the bonds issued pursuant to this article, any
remaining balance in the School Building Debt Service Fund may be transferred to the School Construction Fund created in subsection
(c) of this section and used by the School Building Authority in
its discretion to finance the cost of school construction or
improvement projects authorized in accordance with the provisions
of section sixteen of this article on a cash basis.
(c) There is continued in the State Treasury a special revenue
fund named the School Construction Fund into which shall be
deposited the amounts specified in section thirty, article fifteen,
chapter eleven of this code,
and section eighteen-a, article
twenty-two, chapter twenty-nine of this code together with any
moneys appropriated to the fund by the Legislature
: Provided, That
for the school year beginning the first day of July, two thousand
four, only, funds from the excess lottery allocated in section
eighteen-a, article twenty-two, chapter twenty-nine of this code
shall not be transferred to the School Construction Fund and, in
lieu thereof, made available for legislative appropriation
:
Provided, however, That for the school year beginning the first day
of July, two thousand four, only, up to five million dollars of the
amounts in the fund may be appropriated by the Legislature for
budget shortfalls.
Expenditures from the School Construction Fund shall be for
the purposes set forth in this article, including lease-purchase
payments under agreements made pursuant to subsection (e), section fifteen of this article and section nine, article five of this
chapter and are authorized from collections in accordance with the
provisions of article three, chapter twelve of this code and from
other revenues annually appropriated by the Legislature from
lottery revenues as authorized by section eighteen, article
twenty-two, chapter twenty-nine of this code pursuant to the
provisions set forth in article two, chapter five-a of this code.
Amounts collected which are found, from time to time, to exceed the
funds needed for purposes set forth in this article may be
transferred to other accounts or funds and redesignated for other
purposes by appropriation of the Legislature. The School
Construction Fund shall be an interest-bearing account, with the
interest credited to and deposited in the School Construction Fund
and expended in accordance with the provisions of this article.
Deposits to and expenditures from the School Construction Fund are
subject to the provisions of subsection (k), section fifteen of
this article.
(d) There is continued in the State Treasury a special revenue
fund named the School Major Improvement Fund into which shall be
deposited the amounts specified in section thirty, article fifteen,
chapter eleven of this code, together with any moneys appropriated
to the fund by the Legislature. Expenditures from the School Major
Improvement Fund shall be for the purposes set forth in this article and are authorized from collections in accordance with the
provisions of article three, chapter twelve of this code and from
other revenues annually appropriated by the Legislature from
lottery revenues as authorized by section eighteen, article
twenty-two, chapter twenty-nine of this code pursuant to the
provisions set forth in article two, chapter five-a of this code.
Amounts collected which are found, from time to time, to exceed the
funds needed for purposes set forth in this article may be
transferred to other accounts or funds and redesignated for other
purposes by appropriation of the Legislature. The School Major
Improvement Fund shall be an interest-bearing account, with
interest being credited to and deposited in the School Major
Improvement Fund and expended in accordance with the provisions of
this article.
(e) There is created in the State Treasury a special revenue
fund named the Excess Lottery School Building Debt Service Fund
into which shall be deposited the amounts specified in section
eighteen-a, article twenty-two, chapter twenty-nine of this code.
All amounts deposited in the fund shall be pledged, as designated
by the authority, to the repayment of the principal, interest and
redemption premium, if any, on revenue bonds or refunding revenue
bonds authorized by section four-b of this article. On or prior to
the first day of May of each year, 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 issued for which moneys deposited in the Excess Lottery
School Building 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
article for which moneys deposited in the Excess Lottery School
Building Debt Service Fund have been pledged 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 article, any balance remaining in the excess
lottery School Building Debt Service Fund may be used for the
redemption of any of the outstanding bonds issued under this
article, for which moneys deposited in the Excess Lottery School
Building Debt Service Fund have been pledged, 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 the bonds are redeemable and all bonds redeemed or purchased
shall be immediately canceled and shall not again be issued:
Provided, That after the authority has issued bonds authorized by
this article and after the requirements of debt service and all
associated funds have been satisfied for the fiscal year, including
coverage and reserve funds established in connection with the bonds issued pursuant to this article for which moneys deposited in the
Excess Lottery School Building Debt Service Fund have been pledged,
any remaining balance in the Excess Lottery School Building Debt
Service Fund may be transferred to the School Construction Fund
created in subsection (c) of this section and used by the School
Building Authority in its discretion to finance the cost of school
construction or improvement projects authorized in accordance with
the provisions of section sixteen of this article on a cash basis.
(e) (f) The Legislature finds and declares that the Supreme
Court of Appeals of West Virginia has held that the issuance of
additional revenue bonds authorized under the School Building
Authority Act, as enacted in this article prior to the twentieth
day of July, one thousand nine hundred ninety-three, constituted an
indebtedness of the state in violation of section four, article X
of the Constitution of West Virginia, but that revenue bonds issued
under this article prior to the twentieth day of July, one thousand
nine hundred ninety-three, are not invalid.
The Legislature further finds and declares that the financial
capacity of a county to construct, lease and improve school
facilities depends upon the county's bonding capacity (local
property wealth), voter willingness to pass bond issues and the
county's ability to reallocate other available county funds instead
of criteria related to educational needs or upon the ability of the School Building Authority created in this article to issue bonds
that comply with the holding of the West Virginia Supreme Court of
Appeals or otherwise assist counties with the financing of
facilities construction and improvement. The Legislature further
finds and declares that this section, as well as section eighteen,
article twenty-two, chapter twenty-nine of this code, had been
reenacted during the first extraordinary session of the West
Virginia Legislature in the year one thousand nine hundred
ninety-four in an attempt to comply with the holding of the Supreme
Court of Appeals of West Virginia.
The Legislature further finds and declares that it intends,
through the reenactment of this section and section eighteen,
article twenty-two, chapter twenty-nine of this code, to dedicate
a source of state revenues to special revenue funds for the
purposes of paying the debt service on bonds and refunding bonds
issued subsequent to the first day of January, one thousand nine
hundred ninety-four, the proceeds of which will be used for the
construction and improvement of school building facilities. The
Legislature further finds and declares that it intends, through the
reenactment of this section and section thirty, article fifteen,
chapter eleven of this code and section eighteen, article
twenty-two, chapter twenty-nine of this code, to appropriate
revenues to two special revenue funds for the purposes of construction and improvement of school building facilities.
Furthermore, the Legislature intends to encourage county boards to
maintain existing levels of county funding for construction,
improvement and maintenance of school building facilities and to
generate additional county funds for those purposes through bonds
and special levies whenever possible. The Legislature further
encourages the School Building Authority, the state board and
county boards of education to propose uniform project
specifications for comparable projects whenever possible to meet
county needs at the lowest possible cost.
The Legislature further finds and declares that it intends,
through the reenactment of this section and section eighteen,
article twenty-two, chapter twenty-nine of this code, to comply
with the provisions of sections four and six, article X of the
Constitution of West Virginia; and section one, article XII of said
constitution.
§18-9D-8. Use of proceeds of bonds; bonds exempt from taxation.
(a) The maximum aggregate face value of bonds that may be
issued by the authority, for which the moneys in the School
Building Debt Service Fund
or the Excess Lottery School Building
Debt Service Fund are to be pledged, is
four five hundred million
dollars. The issuance of revenue bonds under the provisions of
this article shall be authorized, from time to time, by resolution or resolutions of the School Building Authority which shall set
forth the proposed projects authorized in accordance with the
provisions of section sixteen of this article and provide for the
issuance of bonds in amounts sufficient, when sold as provided in
this section, to provide moneys considered sufficient by the
authority to pay the costs, less the amounts of any other funds
available for the costs or from any appropriation, grant or gift
for the costs
: Provided, That bond issues from which bond revenues
are to be distributed in accordance with section fifteen of this
article for projects authorized pursuant to the provisions of
section sixteen of this article are not required to set forth the
proposed projects in the resolution. The resolution shall
prescribe the rights and duties of the bondholders and the School
Building Authority and, for that purpose, may prescribe the form of
the trust agreement referred to in this section. The bonds may be
issued, from time to time, in such amounts; shall be of such
series; bear such date or dates; mature at such time or times not
exceeding forty years from their respective dates; bear interest at
such rate or rates; be in such denominations; be in such form,
either coupon or registered, carrying such registration,
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 redemption at such prices not exceeding one hundred five percent of the principal
amount of the bonds; and be entitled to such priorities on the
revenues paid into the fund pledged for repayment of the bonds as
may be provided in the resolution authorizing the issuance of the
bonds or in any trust agreement made in connection with the bonds
:
Provided, however, That revenue bonds issued on or after the first
day of January, one thousand nine hundred ninety-four,
and prior to
the first day of January, two thousand eight, which are secured by
lottery proceeds
from section eighteen, article twenty-two, chapter
twenty-nine of this code shall mature at such time or times not
exceeding ten years from their respective dates:
Provided further,
That revenue bonds issued on or after the first day of January, two
thousand eight, which are secured by lottery proceeds from sections
eighteen or eighteen-a, article twenty-two, chapter twenty-nine of
this code, shall mature at such time or times not exceeding twenty
years from their respective dates.
(b) The bonds shall be signed by the Governor, and by the
president or vice president of the authority, under the great seal
of the state, attested by the Secretary of State, and the coupons
attached to the bonds shall bear the facsimile signature of the
president or vice president of the authority. In case any of the
officers whose signatures appear on the bonds or coupons cease to
be officers before the delivery of the bonds, the signatures shall nevertheless be valid and sufficient for all purposes the same as
if the officers had remained in office until the delivery. The
revenue bonds shall be sold in the manner determined by the
authority to be for the best interests of the state.
(c) Any pledge of revenues made by the School Building
Authority for revenue bonds issued prior to the twentieth day of
July, one thousand nine hundred ninety-three, pursuant to this
article is valid and binding between the parties from the time the
pledge is made; and the revenues pledged shall immediately be
subject to the lien of the pledge without any further physical
delivery of the revenues pledged or further act. The lien of the
pledge is valid and binding against all parties having claims of
any kind in tort, contract or otherwise, irrespective of whether
the parties have notice of the lien of the pledge and the pledge
shall be a prior and superior charge over any other use of the
revenues pledged.
(d) The proceeds of any bonds shall be used solely for the
purpose or purposes as may be generally or specifically set forth
in the resolution authorizing those bonds and shall be disbursed in
the manner and with the restrictions, if any, that the authority
provides in the resolution authorizing the issuance of the bonds or
in the trust agreement referred to in this section securing the
bonds. If the proceeds of the bonds, by error in calculations or otherwise, are less than the cost of any projects specifically set
forth in the resolution, additional bonds may in like manner be
issued to provide the amount of the deficiency; and unless
otherwise provided for in the resolution or trust agreement
hereinafter mentioned, the additional bonds shall be considered to
be of the same issue and are entitled to payment from the same
fund, without preference or priority, as the bonds before issued
for the projects. If the proceeds of bonds issued for the projects
specifically set forth in the resolution authorizing the bonds
issued by the authority exceed the cost of the bonds, the surplus
may be used for any other projects authorized in accordance with
the provisions of section sixteen of this article or in any other
manner that the resolution authorizing the bonds provides. Prior
to the preparation of definitive bonds, the authority may, under
like restrictions, issue temporary bonds with or without coupons,
exchangeable for definitive bonds upon the issuance of the
definitive bonds.
(e) After the issuance of any revenue bonds, the revenues
pledged for the revenue bonds shall not be reduced as long as any
of the revenue bonds are outstanding and unpaid except under the
terms, provisions and conditions that are contained in the
resolution, trust agreement or other proceedings under which the
revenue bonds were issued.
(f) The revenue bonds and the revenue refunding bonds and
bonds issued for combined purposes, together with the interest on
the bonds, are exempt from all taxation by the State of West
Virginia, or by any county, school district, municipality or
political subdivision thereof.
(g) To meet the operational costs of the School Building
Authority, the School Building Authority may transfer to a special
revenue account in the State Treasury interest on any debt service
reserve funds created within any resolution authorizing the issue
of bonds or any trust agreement made in connection with the bonds
for expenditure in accordance with legislative appropriation or
allocation of appropriation.
(h) Any school construction bonds issued under this section
shall be issued on parity with any existing School Building
Authority bonds previously issued under this article.
§18-9D-13. Sinking fund for payment of bonds.
(a) From the School Building Capital Improvements Fund the
School Building Authority shall make periodic payments in an amount
sufficient to meet the requirements of any issue of bonds sold
under the provisions of this article prior to the first day of
January, one thousand nine hundred ninety-four, or for refunding
bonds issued prior to that date as may be specified in the
resolution of the authority authorizing the issue thereof and in any trust agreement entered into in connection therewith. The
payments so made shall be placed as specified in such resolution or
trust agreement in a special sinking fund which is hereby pledged
to and charged with the payment of the principal of the bonds of
such issue and the interest thereon, and to the redemption or
repurchase of such bonds, such sinking fund to be a fund for all
bonds of such issue without distinction or priority of one over
another, except as may be provided in the resolution authorizing
such issue of bonds. The moneys in the special sinking fund, less
such reserve for payment of principal and interest and redemption
premium, if any, as may be required by the resolution of the School
Building Authority, authorizing the issue or any trust agreement
made in connection therewith, may be used for the redemption of any
of the outstanding bonds payable from such fund which by their
terms are then redeemable, or for the purchase of bonds at the
market price, but not exceeding the price, if any, at which such
bonds shall in the same year be redeemable; and all bonds redeemed
or purchased shall forthwith be canceled and shall not again be
issued.
(b) From the School Building Debt Service Fund
or the Excess
Lottery School Building Debt Service Fund, the authority shall make
periodic payments in an amount sufficient to meet the requirements
of any issue of bonds sold under the provisions of this article on or after the first day of January, one thousand nine hundred
ninety-four, and for which the authority has pledged revenues in
such fund for the payment of such bonds, as may be specified in the
resolution of the authority authorizing the issue thereof or in any
trust agreement entered into in connection therewith. The payments
so made shall be placed as specified in the resolution or trust
agreement in a special sinking fund which is hereby pledged to and
charged with the payment of the principal of the bonds of the issue
and the interest thereon, and to the redemption or repurchase of
the bonds, the sinking fund to be a fund for all bonds of the
particular issue without distinction or priority of one over
another, except as may be provided in the resolution authorizing
the issuance of the bonds. The moneys in the special sinking fund,
less the reserve for payment of principal and interest and
redemption premium, if any, as may be required by the resolution of
the School Building Authority authorizing the issue or any trust
agreement made in connection therewith, may be used for redemption
of any of the outstanding bonds payable from the fund which by
their terms are then redeemable, or for the purchase of bonds at
the market price, but not exceeding the price, if any, at which
such bonds shall in the same year be redeemable; and all bonds
redeemed or purchased shall forthwith be canceled and shall not
again be issued.
§18-9D-15. Legislative intent; allocation of money among
categories of projects; lease-purchase options;
limitation on time period for expenditure of project
allocation; county maintenance budget requirements;
project disbursements over period of years;
preference for multicounty arrangements; submission
of project designs; set-aside to encourage local
participation.
(a) It is the intent of the Legislature to empower the School
Building Authority to facilitate and provide state funds and to
administer all federal funds provided for the construction and
major improvement of school facilities so as to meet the
educational needs of the people of this state in an efficient and
economical manner. The authority shall make funding determinations
in accordance with the provisions of this article and shall assess
existing school facilities and each facility's school major
improvement plan in relation to the needs of the individual
student, the general school population, the communities served by
the facilities and facility needs statewide.
(b) An amount that is not more than three percent of the sum
of moneys that are determined by the authority to be available for
distribution during the then current fiscal year from:
(1) Moneys paid into the School Building Capital Improvements Fund pursuant to section ten, article nine-a of this chapter;
(2) The issuance of revenue bonds for which moneys in the
School Building Debt Service Fund
or the Excess Lottery School
Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School Construction Fund pursuant to
section six of this article; and
(4) Any other moneys received by the authority, except moneys
paid into the School Major Improvement Fund pursuant to section six
of this article and moneys deposited into the School Access Safety
Fund pursuant to section five, article nine-f of this chapter, may
be allocated and may be expended by the authority for projects
authorized in accordance with the provisions of section sixteen of
this article that service the educational community statewide or,
upon application by the state board, for educational programs that
are under the jurisdiction of the state board. In addition, upon
application by the state board or the administrative council of an
area vocational educational center established pursuant to article
two-b of this chapter, the authority may allocate and expend under
this subsection moneys for school major improvement projects
authorized in accordance with the provisions of section sixteen of
this article proposed by the state board or an administrative
council for school facilities under the direct supervision of the
state board or an administrative council, respectively. Furthermore, upon application by a county board, the authority may
allocate and expend under this subsection moneys for school major
improvement projects for vocational programs at comprehensive high
schools, vocational schools cooperating with community and
technical college programs, or both. Each county board is
encouraged to cooperate with community and technical colleges in
the use of existing or development of new vocational technical
facilities. All projects eligible for funds from this subsection
shall be submitted directly to the authority which shall be solely
responsible for the project's evaluation, subject to the following:
(A) The authority may not expend any moneys for a school major
improvement project proposed by the state board or the
administrative council of an area vocational educational center
unless the state board or an administrative council has submitted
a ten-year facilities plan; and
(B) The authority shall, before allocating any moneys to the
state board or the administrative council of an area vocational
educational center for a school improvement project, consider all
other funding sources available for the project.
(c) An amount that is not more than two percent of the moneys
that are determined by the authority to be available for
distribution during the current fiscal year from:
(1) Moneys paid into the School Building Capital Improvements Fund pursuant to section ten, article nine-a of this chapter;
(2) The issuance of revenue bonds for which moneys in the
School Building Debt Service Fund
or the Excess Lottery School
Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School Construction Fund pursuant to
section six of this article; and
(4) Any other moneys received by the authority, except moneys
deposited into the School Major Improvement Fund and moneys
deposited into the School Access Safety Fund pursuant to section
five, article nine-f of this chapter, shall be set aside by the
authority as an emergency fund to be distributed in accordance with
the guidelines adopted by the authority.
(d) An amount that is not more than five percent of the moneys
that are determined by the authority to be available for
distribution during the current fiscal year from:
(1) Moneys paid into the School Building Capital Improvements
Fund pursuant to section ten, article nine-a of this chapter;
(2) The issuance of revenue bonds for which moneys in the
School Building Debt Service Fund
or the Excess Lottery School
Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School Construction Fund pursuant to
section six of this article; and
(4) Any other moneys received by the authority, except moneys deposited into the School Major Improvement Fund and moneys
deposited into the School Access Safety Fund pursuant to section
five, article nine-f of this chapter, may be reserved by the
authority for multiuse vocational-technical education facilities
projects that may include post-secondary programs as a first
priority use. The authority may allocate and expend under this
subsection moneys for any purposes authorized in this article on
multiuse vocational-technical education facilities projects,
including equipment and equipment updates at the facilities,
authorized in accordance with the provisions of section sixteen of
this article. If the projects approved under this subsection do
not require the full amount of moneys reserved, moneys above the
amount required may be allocated and expended in accordance with
other provisions of this article. A county board, the state board,
an administrative council or the joint administrative board of a
vocational-technical education facility which includes post-
secondary programs may propose projects for facilities or
equipment, or both, which are under the direct supervision of the
respective body
: Provided, That the authority shall, before
allocating any moneys for a project under this subsection, consider
all other funding sources available for the project.
(e) The remaining moneys determined by the authority to be
available for distribution during the then current fiscal year from:
(1) Moneys paid into the School Building Capital Improvements
Fund pursuant to section ten, article nine-a of this chapter;
(2) The issuance of revenue bonds for which moneys in the
School Building Debt Service Fund
or the Excess Lottery School
Building Debt Service Fund are pledged as security;
(3) Moneys paid into the School Construction Fund pursuant to
section six of this article; and
(4) Any other moneys received by the authority, except moneys
deposited into the School Major Improvement Fund and moneys
deposited into the School Access Safety Fund pursuant to section
five, article nine-f of this chapter, shall be allocated and
expended on the basis of need and efficient use of resources for
projects funded in accordance with the provisions of section
sixteen of this article.
(f) If a county board proposes to finance a project that is
authorized in accordance with section sixteen of this article
through a lease with an option to purchase leased premises upon the
expiration of the total lease period pursuant to an investment
contract, the authority may not allocate moneys to the county board
in connection with the project
: Provided, That the authority may
transfer moneys to the state board which, with the authority, shall
lend the amount transferred to the county board to be used only for a one-time payment due at the beginning of the lease term, made for
the purpose of reducing annual lease payments under the investment
contract, subject to the following conditions:
(1) The loan shall be secured in the manner required by the
authority, in consultation with the state board, and shall be
repaid in a period and bear interest at a rate as determined by the
state board and the authority and shall have any terms and
conditions that are required by the authority, all of which shall
be set forth in a loan agreement among the authority, the state
board and the county board;
(2) The loan agreement shall provide for the state board and
the authority to defer the payment of principal and interest upon
any loan made to the county board during the term of the investment
contract, and annual renewals of the investment contract, among the
state board, the authority, the county board and a lessor, subject
to the following:
(A) In the event a county board which has received a loan from
the authority for a one-time payment at the beginning of the lease
term does not renew the lease annually until performance of the
investment contract in its entirety is completed, the county board
is in default and the principal of the loan, together with all
unpaid interest accrued to the date of the default, shall, at the
option of the authority, in consultation with the state board, become due and payable immediately or subject to renegotiation
among the state board, the authority and the county board;
(B) If a county board renews the lease annually through the
performance of the investment contract in its entirety, the county
board shall exercise its option to purchase the leased premises;
(C) The failure of the county board to make a scheduled
payment pursuant to the investment contract constitutes an event of
default under the loan agreement;
(D) Upon a default by a county board, the principal of the
loan, together with all unpaid interest accrued to the date of the
default, shall, at the option of the authority, in consultation
with the state board, become due and payable immediately or subject
to renegotiation among the state board, the authority and the
county board; and
(E) If the loan becomes due and payable immediately, the
authority, in consultation with the state board, shall use all
means available under the loan agreement and law to collect the
outstanding principal balance of the loan, together with all unpaid
interest accrued to the date of payment of the outstanding
principal balance; and
(3) The loan agreement shall provide for the state board and
the authority to forgive all principal and interest of the loan
upon the county board purchasing the leased premises pursuant to the investment contract and performance of the investment contract
in its entirety.
(g) To encourage county boards to proceed promptly with
facilities planning and to prepare for the expenditure of any state
moneys derived from the sources described in this section, any
county board or other entity to whom moneys are allocated by the
authority that fails to expend the money within three years of the
allocation shall forfeit the allocation and thereafter is
ineligible for further allocations pursuant to this section until
it is ready to expend funds in accordance with an approved
facilities plan
: Provided, That the authority may authorize an
extension beyond the three-year forfeiture period not to exceed an
additional two years. Any amount forfeited shall be added to the
total funds available in the School Construction Fund of the
authority for future allocation and distribution. Funds may not be
distributed for any project under this article unless the
responsible entity has a facilities plan approved by the state
board and the School Building Authority and is prepared to commence
expenditure of the funds during the fiscal year in which the moneys
are distributed.
(h) The remaining moneys that are determined by the authority
to be available for distribution during the then current fiscal
year from moneys paid into the School Major Improvement Fund pursuant to section six of this article shall be allocated and
distributed on the basis of need and efficient use of resources for
projects authorized in accordance with the provisions of section
sixteen of this article, subject to the following:
(1) The moneys may not be distributed for any project under
this section unless the responsible entity has a facilities plan
approved by the state board and the authority and is to commence
expenditures of the funds during the fiscal year in which the
moneys are distributed;
(2) Any moneys allocated to a project and not distributed for
that project shall be deposited in an account to the credit of the
project, the principal amount to remain to the credit of and
available to the project for a period of two years; and
(3) Any moneys which are unexpended after a two-year period
shall be redistributed on the basis of need from the School Major
Improvement Fund in that fiscal year.
(i) Local matching funds may not be required under the
provisions of this section. However, this article does not negate
the responsibilities of the county boards to maintain school
facilities. To be eligible to receive an allocation of school
major improvement funds from the authority, a county board must
have expended in the previous fiscal year an amount of county
moneys equal to or exceeding the lowest average amount of money included in the county board's maintenance budget over any three of
the previous five years and must have budgeted an amount equal to
or greater than the average in the current fiscal year
: Provided,
That the state board shall promulgate rules relating to county
boards' maintenance budgets, including items which shall be
included in the budgets.
(j) Any county board may use moneys provided by the authority
under this article in conjunction with local funds derived from
bonding, special levy or other sources. Distribution to a county
board, or to the state board or the administrative council of an
area vocational educational center pursuant to subsection (b) of
this section, may be in a lump sum or in accordance with a schedule
of payments adopted by the authority pursuant to guidelines adopted
by the authority.
(k) Funds in the School Construction Fund shall first be
transferred and expended as follows:
(1) Any funds deposited in the School Construction Fund shall
be expended first in accordance with an appropriation by the
Legislature.
(2) To the extent that funds are available in the School
Construction Fund in excess of that amount appropriated in any
fiscal year, the excess funds may be expended for projects
authorized in accordance with the provisions of section sixteen of this article.
(l) It is the intent of the Legislature to encourage county
boards to explore and consider arrangements with other counties
that may facilitate the highest and best use of all available
funds, which may result in improved transportation arrangements for
students or which otherwise may create efficiencies for county
boards and the students. In order to address the intent of the
Legislature contained in this subsection, the authority shall grant
preference to those projects which involve multicounty arrangements
as the authority shall determine reasonable and proper.
(m) County boards shall submit all designs for construction of
new school buildings to the School Building Authority for review
and approval prior to preparation of final bid documents. A vendor
who has been debarred pursuant to the provisions of sections
thirty-three-a through thirty-three-f, inclusive, article three,
chapter five-a of this code may not bid on or be awarded a contract
under this section.
(n) The authority may elect to disburse funds for approved
construction projects over a period of more than one year subject
to the following:
(1) The authority may not approve the funding of a school
construction project over a period of more than three years;
(2) The authority may not approve the use of more than fifty percent of the revenue available for distribution in any given
fiscal year for projects that are to be funded over a period of
more than one year; and
(3) In order to encourage local participation in funding
school construction projects, the authority may set aside limited
funding, not to exceed five hundred thousand dollars, in reserve
for one additional year to provide a county the opportunity to
complete financial planning for a project prior to the allocation
of construction funds. Any funding shall be on a reserve basis and
converted to a part of the construction grant only after all
project budget funds have been secured and all county commitments
have been fulfilled. Failure of the county to solidify the project
budget and meet its obligations to the state within eighteen months
of the date the funding is set aside by the authority will result
in expiration of the reserve and the funds shall be reallocated by
the authority in the succeeding funding cycle.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State Excess Lottery Revenue Fund.
(a) There is continued a special revenue fund within the State
Lottery Fund in the State Treasury which is designated and known as
the State Excess Lottery Revenue 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 under the provisions of sections ten-b
and ten-c, article twenty-two-a of this chapter and under article
twenty-two-b of this chapter, except the amounts due the commission
under subdivision (1), subsection (a), section one thousand four
hundred eight, article twenty-two-b of this chapter, shall be
deposited in the State Treasury and placed into the State Excess
Lottery Revenue 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 the State Treasurer as
part of the general revenue of the state.
(b) For the fiscal year beginning the first day of July, two
thousand two, the commission shall deposit: (1) Sixty-five million
dollars into the subaccount of the State Excess Lottery Revenue
Fund hereby created in the State Treasury to be known as the
General Purpose Account to be expended pursuant to appropriation of
the Legislature; (2) ten million dollars into the Education
Improvement Fund for appropriation by the Legislature to the
PROMISE Scholarship Fund created in section seven, article seven,
chapter eighteen-c of this code; (3) nineteen million dollars into
the Economic Development Project Fund created in subsection (d) of
this section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) twenty million dollars into the School Building Debt Service Fund created
in section six, article nine-d, chapter eighteen of this code for
the issuance of revenue bonds; (5) forty million dollars into the
West Virginia Infrastructure Fund created in section nine, article
fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) ten million
dollars into the Higher Education Improvement Fund for Higher
Education; and (7) five million dollars into the State Park
Improvement Fund for Park Improvements. For the fiscal year
beginning the first day of July, two thousand three, the commission
shall deposit: (1) Sixty-five million dollars into the General
Purpose Account to be expended pursuant to appropriation of the
Legislature; (2) seventeen million dollars into the Education
Improvement Fund for appropriation by the Legislature to the
PROMISE Scholarship Fund created in section seven, article seven,
chapter eighteen-c of this code; (3) nineteen million dollars into
the Economic Development Project Fund created in subsection (d) of
this section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) twenty
million dollars into the School Building Debt Service Fund created
in section six, article nine-d, chapter eighteen of this code for
the issuance of revenue bonds; (5) forty million dollars into the
West Virginia Infrastructure Fund created in section nine, article fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) ten million
dollars into the Higher Education Improvement Fund for Higher
Education; and (7) five million dollars into the State Park
Improvement Fund for Park Improvements.
(c) For the fiscal year beginning the first day of July, two
thousand four, and subsequent fiscal years, the commission shall
deposit: (1) Sixty-five million dollars into the General Purpose
Account to be expended pursuant to appropriation of the
Legislature; (2) twenty-seven million dollars into the Education
Improvement Fund for appropriation by the Legislature to the
PROMISE Scholarship Fund created in section seven, article seven,
chapter eighteen-c of this code; (3) nineteen million dollars into
the Economic Development Project Fund created in subsection (d) of
this section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) nineteen
million dollars into the School Building Debt Service Fund created
in section six, article nine-d, chapter eighteen of this code for
the issuance of revenue bonds:
Provided, That for the fiscal year
beginning the first day of July, two thousand eight, and subsequent
fiscal years, no moneys shall be deposited in the School Building
Debt Service Fund pursuant to this subsection and instead nineteen
million dollars shall be deposited into the Excess Lottery School Building Debt Service Fund; (5) forty million dollars into the West
Virginia Infrastructure Fund created in section nine, article
fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) ten million
dollars into the Higher Education Improvement Fund for Higher
Education; and (7) five million dollars into the State Park
Improvement Fund for Park Improvements. No portion of the
distributions made as provided in this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (d) of this section, may be used to
pay debt service on bonded indebtedness until after the Legislature
expressly authorizes issuance of the bonds and payment of debt
service on the bonds through statutory enactment or the adoption of
a concurrent resolution by both houses of the Legislature. Until
subsequent legislative enactment or adoption of a resolution that
expressly authorizes issuance of the bonds and payment of debt
service on the bonds with funds distributed under this subsection
and subsection (b) of this section, except distributions made in
connection with bonds issued under subsection (d) of this section,
the distributions may be used only to fund capital improvements
that are not financed by bonds and only pursuant to appropriation
of the Legislature.
(d) The Legislature finds and declares that in order to attract new business, commerce and industry to this state, to
retain existing business and industry providing the citizens of
this state with economic security and to advance the business
prosperity of this state and the economic welfare of the citizens
of this state, it is necessary to provide public financial support
for constructing, equipping, improving and maintaining economic
development projects, capital improvement projects and
infrastructure which promote economic development in this state.
(1) The West Virginia Economic Development Authority created
and provided for in article fifteen, chapter thirty-one of this
code shall, by resolution, in accordance with the provisions of
this article and article fifteen, chapter thirty-one of this code,
and upon direction of the Governor, issue revenue bonds of the
Economic Development Authority in no more than two series to pay
for all or a portion of the cost of constructing, equipping,
improving or maintaining projects under this section or to refund
the bonds at the discretion of the authority. Any revenue bonds
issued on or after the first day of July, two thousand two, which
are secured by state excess lottery revenue proceeds shall mature
at a time or times not exceeding thirty 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 this section for the payment.
(2) There is continued in the State Treasury a special revenue
fund named the Economic Development Project Fund into which shall
be deposited on and after the first day of July, two thousand two,
the amounts to be deposited in said fund as specified in
subsections (b) and (c) of this section. The Economic Development
Project Fund shall consist of all such moneys, all appropriations
to the fund, all interest earned from investment of the fund and
any gifts, grants or contributions received by the fund. 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, including any and all commercially customary and
reasonable costs and expenses which may be incurred in connection
with the issuance, refunding, redemption or defeasance thereof.
The West Virginia Economic Development Authority may further
provide in the resolution and in the trust agreement for priorities
on the revenues paid into the Economic Development Project 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. The bonds issued pursuant to this subsection shall
be separate from all other bonds which may be or have been issued,
from time to timek, under the provisions of this article.
(3) After the West Virginia Economic Development Authority has issued bonds authorized by this section and after the requirements
of all funds have been satisfied, including any coverage and
reserve funds established in connection with the bonds issued
pursuant to this subsection, any balance remaining in the economic
development project fund may be used for the redemption of any of
the outstanding bonds issued under this subsection 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.
(4) Bonds issued under this subsection shall state on their
face that the bonds do not constitute a debt of the State of West
Virginia; that payment of the bonds, interest and charges thereon
cannot become an obligation of the State of West Virginia; and that
the bondholders' remedies are limited in all respects to the
Special Revenue Fund established in this subsection for the
liquidation of the bonds.
(5) The West Virginia Economic Development Authority shall
expend the bond proceeds from the revenue bond issues authorized
and directed by this section for such projects as may be certified
under the provision of this subsection
: Provided, That the bond
proceeds shall be expended in accordance with the requirements and
provisions of article five-a, chapter twenty-one of this code and either article twenty-two or twenty-two-a, chapter five of this
code, as the case may be
: Provided, however, That if such bond
proceeds are expended pursuant to article twenty-two-a, chapter
five of this code and if the Design-Build Board created under said
article determines that the execution of a design-build contract in
connection with a project is appropriate pursuant to the criteria
set forth in said article and that a competitive bidding process
was used in selecting the design builder and awarding such
contract, such determination shall be conclusive for all purposes
and shall be deemed to satisfy all the requirements of said
article.
(6) For the purpose of certifying the projects that will
receive funds from the bond proceeds, a committee is hereby
established and comprised of the Governor, or his or her designee,
the Secretary of the Department of
Tax and Revenue, the Executive
Director of the West Virginia Development Office and six persons
appointed by the Governor
: Provided, That at least one citizen
member must be from each of the state's three congressional
districts. The committee shall meet as often as necessary and make
certifications from bond proceeds in accordance with this
subsection. The committee shall meet within thirty days of the
effective date of this section.
(7) Applications for grants submitted on or before the first day of July, two thousand two, shall be considered refiled with the
committee. Within ten days from the effective date of this section
as amended in the year two thousand three, the lead applicant shall
file with the committee any amendments to the original application
that may be necessary to properly reflect changes in facts and
circumstances since the application was originally filed with the
committee.
(8) When determining whether or not to certify a project, the
committee shall take into consideration the following:
(A) The ability of the project to leverage other sources of
funding;
(B) Whether funding for the amount requested in the grant
application is or reasonably should be available from commercial
sources;
(C) The ability of the project to create or retain jobs,
considering the number of jobs, the type of jobs, whether benefits
are or will be paid, the type of benefits involved and the
compensation reasonably anticipated to be paid persons filling new
jobs or the compensation currently paid to persons whose jobs would
be retained;
(D) Whether the project will promote economic development in
the region and the type of economic development that will be
promoted;
(E) The type of capital investments to be made with bond
proceeds and the useful life of the capital investments; and
(F) Whether the project is in the best interest of the public.
(9) No grant may be awarded to an individual or other private
person or entity. Grants may be awarded only to an agency,
instrumentality or political subdivision of this state or to an
agency or instrumentality of a political subdivision of this state.
The project of an individual or private person or entity may
be certified to receive a low-interest loan paid from bond
proceeds. The terms and conditions of the loan, including, but not
limited to, the rate of interest to be paid and the period of the
repayment, shall be determined by the Economic Development
Authority after considering all applicable facts and circumstances.
(10) Prior to making each certification, the committee shall
conduct at least one public hearing, which may be held outside of
Kanawha County. Notice of the time, place, date and purpose of the
hearing shall be published in at least one newspaper in each of the
three congressional districts at least fourteen days prior to the
date of the public hearing.
(11) The committee may not certify a project unless the
committee finds that the project is in the public interest and the
grant will be used for a public purpose. For purposes of this
subsection, projects in the public interest and for a public purpose include, but are not limited to:
(A) Sports arenas, fields parks, stadiums and other sports and
sports-related facilities;
(B) Health clinics and other health facilities;
(C) Traditional infrastructure, such as water and wastewater
treatment facilities, pumping facilities and transmission lines;
(D) State-of-the-art telecommunications infrastructure;
(E) Biotechnical incubators, development centers and
facilities;
(F) Industrial parks, including construction of roads, sewer,
water, lighting and other facilities;
(G) Improvements at state parks, such as construction,
expansion or extensive renovation of lodges, cabins, conference
facilities and restaurants;
(H) Railroad bridges, switches and track extension or spurs on
public or private land necessary to retain existing businesses or
attract new businesses;
(I) Recreational facilities, such as amphitheaters, walking
and hiking trails, bike trails, picnic facilities, restrooms, boat
docking and fishing piers, basketball and tennis courts, and
baseball, football and soccer fields;
(J) State-owned buildings that are registered on the National
Register of Historic Places;
(K) Retail facilities, including related service, parking and
transportation facilities, appropriate lighting, landscaping and
security systems to revitalize decaying downtown areas; and
(L) Other facilities that promote or enhance economic
development, educational opportunities or tourism opportunities
thereby promoting the general welfare of this state and its
residents.
(12) Prior to the issuance of bonds under this subsection, the
committee shall certify to the Economic Development Authority a
list of those certified projects that will receive funds from the
proceeds of the bonds. Once certified, the list may not thereafter
be altered or amended other than by legislative enactment.
(13) If any proceeds from sale of bonds remain after paying
costs and making grants and loans as provided in this subsection,
the surplus may be deposited in an account created in the State
Treasury to be known as the Economic Development Project Bridge
Loan Fund to be administered by the Economic Development Authority
created in article fifteen, chapter thirty-one of this code.
Expenditures from the fund are not authorized from collections but
are to be made only in accordance with appropriation by the
Legislature and in accordance with the provisions of article three,
chapter twelve of this code and upon fulfillment of the provisions
of article two, chapter five-a of this code. Loan repayment amounts, including the portion attributable to interest shall be
paid into the fund created in this subdivision.
(e) If the commission receives revenues in an amount that is
not sufficient to fully comply with the requirements of subsections
(b), (c) and (h) of this section, the commission shall first make
the distribution to the Economic Development Project Fund; second,
make the distribution or distributions to the other funds from
which debt service is to be paid; third, make the distribution to
the Education Improvement Fund for appropriation by the Legislature
to the PROMISE Scholarship Fund; and fourth, make the distribution
to the general purpose account
: Provided, That, subject to the
provisions of this subsection, to the extent such revenues are not
pledged in support of revenue bonds which are or may be issued,
from time to time, under this section, the revenues shall be
distributed on a pro rata basis.
(f) For the fiscal year beginning on the first day of July,
two thousand two, and each fiscal year thereafter, the commission
shall, after meeting the requirements of subsections (b), (c) and
(h) of this section and after transferring to the State Lottery
Fund created under section eighteen of this article an amount equal
to any transfer from the State Lottery Fund to the Excess Lottery
Fund pursuant to subsection (f), section eighteen of this article,
deposit fifty percent of the amount by which annual gross revenue deposited in the State Excess Lottery Revenue Fund exceeds two
hundred twenty-five million dollars in a fiscal year in a separate
account in the State Lottery Fund to be available for appropriation
by the Legislature.
(g) When bonds are issued for projects under subsection (d) of
this section or for the School Building Authority, infrastructure,
higher education or park improvement purposes described in this
section that are secured by profits from lotteries deposited in the
State Excess Lottery Revenue Fund, the Lottery Director shall
allocate first to the Economic Development Project Fund an amount
equal to one tenth of the projected annual principal, interest and
coverage requirements on any and all revenue bonds issued, or to be
issued, on or after the first day of July, two thousand two, as
certified to the Lottery Director; and second, to the fund or funds
from which debt service is paid on bonds issued under this section
for the School Building Authority, infrastructure, higher education
and park improvements an amount equal to one tenth of the projected
annual principal, interest and coverage requirements on any and all
revenue bonds issued, or to be issued, on or after the first day of
April, two thousand two, as certified to the Lottery Director. In
the event there are insufficient funds available in any month to
transfer the amounts required pursuant to this subsection, the
deficiency shall be added to the amount transferred in the next succeeding month in which revenues are available to transfer the
deficiency.
(h) In fiscal year two thousand four and thereafter, prior to
the distributions provided in subsection (c) of this section, the
Lottery Commission shall deposit into the General Revenue Fund
amounts necessary to provide reimbursement for the refundable
credit allowable under section twenty-one, article twenty-one,
chapter eleven of this code.
(i) (1) The Legislature considers the following as priorities
in the expenditure of any surplus revenue funds:
(A) Providing salary and/or increment increases for
professional educators and public employees;
(B) Providing adequate funding for the Public Employees
Insurance Agency; and
(C) Providing funding to help address the shortage of
qualified teachers and substitutes in areas of need, both in number
of teachers and in subject matter areas.
(2) The provisions of this subsection may not be construed by
any court to require any appropriation or any specific
appropriation or level of funding for the purposes set forth in
this subsection.
(j) The Legislature further directs the Governor to focus
resources on the creation of a prescription drug program for senior citizens by pursuing a Medicaid waiver to offer prescription drug
services to senior citizens; by investigating the establishment of
purchasing agreements with other entities to reduce costs; by
providing discount prices or rebate programs for seniors; by
coordinating programs offered by pharmaceutical manufacturers that
provide reduced cost or free drugs; by coordinating a collaborative
effort among all state agencies to ensure the most efficient and
cost-effective program possible for the senior citizens of this
state; and by working closely with the state's congressional
delegation to ensure that a national program is implemented. The
Legislature further directs that the Governor report his progress
back to the Joint Committee on Government and Finance on an annual
basis beginning in November of the year two thousand one until a
comprehensive program has been fully implemented.
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(NOTE: The purpose of this bill is to authorize the School
Building Authority to issue revenue bonds by using nineteen million
dollars in proceeds from the State Excess Lottery Fund. This
increased bonding capacity will permit the School Building
Authority increased capacity to build additional schools and make
substantial improvements to existing schools.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§18-9D-4b is new; therefore, strike-throughs and
underscoring have been omitted.)
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EDUCATION COMMITTEE AMENDMENT
On page twelve, section six, line twenty-three, by
striking out "(e)" and inserting in lieu thereof "(f)".
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FINANCE COMMITTEE AMENDMENT
By striking out the title and substituting therefor a new
title, to read as follows:
Eng. Senate Bill No. 297--A Bill to amend and reenact
§18-9D-2, §18-9D-6, §18-9D-8, §18-9D-13 and §18-9D-15 of the
Code of West Virginia, 1931, as amended; to amend said code by
adding thereto a new section, designated §18-9D-4b; and to
amend and reenact §29-22-18a of said code, all relating
generally to the School Building Authority; modifying
definitions and qualifications of construction projects and
major improvement projects; authorizing the School Building
Authority to issue bonds by using moneys deposited in the
Excess Lottery School Building Debt Service Fund from the
State Excess Lottery Fund; creating Excess Lottery School
Building Debt Service Fund; providing that moneys from the
State Excess Lottery Fund are deposited into the Excess
Lottery School Building Debt Service Fund; and clarifying the
powers of the authority in issuing bonds.