H. B. 2740
(By Delegates Beach, Evans, Michael,
J. Martin, Willison and Mezzatesta)
[Introduced February 24, 1995; referred to the
Committee on Finance.]
A BILL to amend and reenact section nine, article fifteen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to amend article
twenty-three of said chapter by adding thereto a new
section, designated section twenty-four-a; and to amend
article twenty-four of said chapter by adding thereto a new
section, designated section twenty-two-a; and to amend and
reenact section three-a, article one, chapter nineteen of
said code; and to amend chapter thirty-one of said code by
adding thereto a new article, designated article twenty-one,
all relating to incentives for agricultural industries enterprises in the state to produce value-added products
from raw agricultural products.
Be it enacted by the Legislature of West Virginia:
That section nine, article fifteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that article twenty-three of
said chapter be amended by adding thereto a new section,
designated section twenty-four-a; and that article twenty-four of
said chapter be amended by adding thereto a new section,
designated section twenty-two-a; and that section three-a,
article one, chapter nineteen of said code be amended and
reenacted; and that chapter thirty-one of said code be amended by
adding thereto a new article, designated article twenty-one, all
to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-9. Exemptions.
The following sales and services are exempt:
(a) Sales of gas, steam and water delivered to consumers
through mains or pipes and sales of electricity;
(b) Sales of textbooks required to be used in any of the
schools of this state or in any institution in this state which
qualifies as a nonprofit or educational institution subject to
the West Virginia department of education and the arts, board of
trustees of the university system of West Virginia or the board
of directors for colleges located in this state;
(c) Sales of property or services to the state, its
institutions or subdivisions, governmental units, institutions or
subdivisions of other states:
Provided, That the law of such
other state provides the same exemption to governmental units or
subdivisions of this state and to the United States, including
agencies of federal, state or local governments for distribution
in public welfare or relief work;
(d) Sales of vehicles which are titled by the division of
motor vehicles and which are subject to the tax imposed by
section four, article three, chapter seventeen-a of this code, or
like tax;
(e) Sales of property or services to churches and bona fide
charitable organizations who make no charge whatsoever for the services they render:
Provided, That the exemption herein
granted shall apply only to services, equipment, supplies, food
for meals and materials directly used or consumed by these
organizations, and shall not apply to purchases of gasoline or
special fuel;
(f) Sales of tangible personal property or services to a
corporation or organization which has a current registration
certificate issued under article twelve of this chapter is exempt
from federal income taxes under Section 501(c)(3) or (c)(4) of
the Internal Revenue Code of 1986, as amended, and is:
(1) A church or a convention or association of churches as
defined in Section 170 of the Internal Revenue Code of 1986, as
amended;
(2) An elementary or secondary school which maintains a
regular faculty and curriculum and has a regularly enrolled body
of pupils or students in attendance at the place in this state
where its educational activities are regularly carried on;
(3) A corporation or organization which annually receives
more than one half of its support from any combination of gifts, grants, direct or indirect charitable contributions or membership
fees;
(4) An organization which has no paid employees and its
gross income from fund raisers, less reasonable and necessary
expenses incurred to raise such gross income (or the tangible
personal property or services purchased with such net income), is
donated to an organization which is exempt from income taxes
under Section 501(c)(3) or (c)(4) of the Internal Revenue Code of
1986, as amended;
(5) A youth organization, such as the girl scouts of the
United States of America, the boy scouts of America or the YMCA
Indian guide/princess program and the local affiliates thereof,
which is organized and operated exclusively for charitable
purposes and has as its primary purpose the nonsectarian
character development and citizenship training of its members;
(6) For purposes of this subsection:
(A) The term "support" includes, but is not limited to:
(i) Gifts, grants, contributions or membership fees;
(ii) Gross receipts from fund raisers which include receipts from admissions, sales of merchandise, performance of services or
furnishing of facilities in any activity which is not an
unrelated trade or business within the meaning of Section 513 of
the Internal Revenue Code of 1986, as amended;
(iii) Net income from unrelated business activities, whether
or not such activities are carried on regularly as a trade or
business;
(iv) Gross investment income as defined in Section 509(e) of
the Internal Revenue Code of 1986, as amended;
(v) Tax revenues levied for the benefit of a corporation or
organization either paid to or expended on behalf of such
organization; and
(vi) The value of services or facilities (exclusive of
services or facilities generally furnished to the public without
charge) furnished by a governmental unit referred to in Section
170(c)(1) of the Internal Revenue Code of 1986, as amended, to an
organization without charge. This term does not include any gain
from the sale or other disposition of property which would be
considered as gain from the sale or exchange of a capital asset, or the value of an exemption from any federal, state or local tax
or any similar benefit;
(B) The term "charitable contribution" means a contribution
or gift to or for the use of a corporation or organization,
described in Section 170(c)(2) of the Internal Revenue Code of
1986, as amended;
(C) The term "membership fee" does not include any amounts
paid for tangible personal property or specific services rendered
to members by the corporation or organization; or
(7) The exemption allowed by subsection (f) does not apply
to sales of gasoline or special fuel or to sales of tangible
personal property or services to be used or consumed in the
generation of unrelated business income as defined in Section 513
of the Internal Revenue Code of 1986, as amended. The provisions
of this subsection as amended by this article shall apply to
sales made after the thirtieth day of June, one thousand nine
hundred eighty-nine:
Provided, That the exemption herein granted
shall apply only to services, equipment, supplies and materials
used or consumed in the activities for which such organizations qualify as tax exempt organizations under the Internal Revenue
Code by these organizations and shall not apply to purchases of
gasoline or special fuel;
(g) Sales of property or services to persons engaged in this
state in the business of manufacturing, transportation,
transmission, communication or in the production of natural
resources:
Provided, That on and after the first day of July,
one thousand nine hundred eighty-seven, the exemption provided in
this subsection shall apply only to services, machinery, supplies
and materials directly used or consumed in the activities of
manufacturing, transportation, transmission, communication or the
production of natural resources in the businesses or
organizations named above and shall not apply to purchases of
gasoline or special fuel:
Provided, however, That on and after
the first day of May, one thousand nine hundred ninety-three, the
exemption provided in this subsection shall apply only to
services, machinery, supplies and materials directly used or
consumed in the activities of manufacturing, transportation,
transmission, communication, production of natural resources, gas storage, generation or production of selling electric power,
provision of a public utility service or the operation of a
utility service or the operation of a utility business, in the
businesses or organizations named above and shall not apply to
purchases of gasoline or special fuel;
(h) An isolated transaction in which any taxable service or
any tangible personal property is sold, transferred, offered for
sale or delivered by the owner thereof or by his representative
for the owner's account, such sale, transfer, offer for sale or
delivery not being made in the ordinary course of repeated and
successive transactions of like character by such owner or on his
account by such representative:
Provided, That nothing contained
herein may be construed to prevent an owner who sells, transfers
or offers for sale tangible personal property in an isolated
transaction through an auctioneer from availing himself or
herself of the exemption provided herein, regardless where such
isolated sale takes place. The tax commissioner may adopt such
legislative rule pursuant to chapter twenty-nine-a of this code
as he deems necessary for the efficient administration of this exemption;
(i) Sales of tangible personal property or of any taxable
services rendered for use or consumption in connection with the
commercial production of an agricultural product the ultimate
sale of which will be subject to the tax imposed by this article
or which would have been subject to tax under this article:
Provided, That sales of tangible personal property and services
to be used or consumed in the construction of or permanent
improvement to real property and sales of gasoline and special
fuel shall not be exempt:
Provided, however, That nails and
fencing shall not be considered as improvements to real property;
(j) Sales of tangible personal property to a person for the
purpose of resale in the form of tangible personal property:
Provided, That sales of gasoline and special fuel by distributors
and importers shall be taxable except when the sale is to another
distributor for resale:
Provided, however, That sales of
building materials or building supplies or other property to any
person engaging in the activity of contracting, as defined in
this article, which is to be installed in, affixed to or incorporated by such person or his agent into any real property,
building or structure shall not be exempt under this subsection,
except that sales of tangible personal property to a person
engaging in the activity of contracting pursuant to a written
contract with the United States, this state, or with a political
subdivision thereof, or with a public corporation created by the
Legislature or by another governmental entity pursuant to an act
of the Legislature, for a building or structure, or improvement
thereto, or other improvement to real property that is or will be
owned and used by the governmental entity for a governmental or
proprietary purpose, who incorporates such property in such
building, structure or improvement shall, with respect to such
tangible personal property, nevertheless be deemed to be the
vendor of such property to the governmental entity and any person
seeking to qualify for and assert this exception must do so
pursuant to such legislative rules and regulations as the tax
commissioner may promulgate and upon such forms as the tax
commissioner may prescribe. A subcontractor who, pursuant to a
written subcontract with a prime contractor who qualifies for this exception, provides equipment, or materials, and labor to
such a prime contractor shall be treated in the same manner as
the prime contractor is treated with respect to the prime
contract under this exception and the legislative rules and
regulations promulgated by the tax commissioner:
Provided
further, That the exemption for government contractors in the
preceding proviso shall expire on the first day of October, one
thousand nine hundred ninety, subject to the transition rules set
forth in section eight-c of this article;
(k) Sales of property or services to nationally chartered
fraternal or social organizations for the sole purpose of free
distribution in public welfare or relief work:
Provided, That
sales of gasoline and special fuel shall be taxable;
(l) Sales and services, fire fighting or station house
equipment, including construction and automotive, made to any
volunteer fire department organized and incorporated under the
laws of the state of West Virginia:
Provided, That sales of
gasoline and special fuel shall be taxable;
(m) Sales of newspapers when delivered to consumers by route carriers;
(n) Sales of drugs dispensed upon prescription and sales of
insulin to consumers for medical purposes;
(o) Sales of radio and television broadcasting time,
preprinted advertising circulars and newspaper and outdoor
advertising space for the advertisement of goods or services;
(p) Sales and services performed by day-care centers;
(q) Casual and occasional sales of property or services not
conducted in a repeated manner or in the ordinary course of
repetitive and successive transactions of like character by a
corporation or organization which is exempt from tax under
subsection (f) of this section on its purchases of tangible
personal property or services:
(1) For purposes of this subsection, the term "casual and
occasional sales not conducted in a repeated manner or in the
ordinary course of repetitive and successive transactions of like
character" means sales of tangible personal property or services
at fund raisers sponsored by a corporation or organization which
is exempt, under subsection (f) of this section, from payment of the tax imposed by this article on its purchases, when such fund
raisers are of limited duration and are held no more than six
times during any twelve-month period and limited duration means
no more than eighty-four consecutive hours;
(2) The provisions of this subsection, as amended by this
article, shall apply to sales made after the thirtieth day of
June, one thousand nine hundred eighty-nine;
(r) Sales of property or services to a school which has
approval from the board of trustees of the university system of
West Virginia or the board of directors of the state college
system to award degrees, which has its principal campus in this
state, and which is exempt from federal and state income taxes
under Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended:
Provided, That sales of gasoline and special fuel shall
be taxable;
(s) Sales of mobile homes to be utilized by purchasers as
thhir principal year-round residence and dwelling:
Provided,
That these mobile homes shall be subject to tax at the three
percent rate;
(t) Sales of lottery tickets and materials by licensed
lottery sales agents and lottery retailers authorized by the
state lottery commission, under the provisions of article
twenty-two, chapter twenty-nine of this code;
(u) Leases of motor vehicles titled pursuant to the
provisions of article three, chapter seventeen-a of this code to
lessees for a period of thirty or more consecutive days. This
exemption shall apply to leases executed on or after the first
day of July, one thousand nine hundred eighty-seven, and to
payments under long-term leases executed before such date, for
months thereof beginning on or after such date;
(v) Sales of propane to consumers for poultry house heating
purposes, with any seller to such consumer who may have prior
paid such tax in his price, to not pass on the same to the
consumer, but to make application and receive refund of such tax
from the tax commissioner, pursuant to rules and regulations
which shall be promulgated by the tax commissioner; and
notwithstanding the provisions of section eighteen of this
article or any other provisions of such article to the contrary;
(w) Any sales of tangible personal property or services
purchased after the thirtieth day of September, one thousand nine
hundred eighty-seven, and lawfully paid for with food stamps
pursuant to the federal food stamp program codified in 7 United
States Code, §2011, et seq., as amended, or with drafts issued
through the West Virginia special supplemental food program for
women, infants and children codified in 42 United States Code,
§1786;
(x) Sales of tickets for activities sponsored by elementary
and secondary schools located within this state;
(y) Sales of electronic data processing services and related
software:
Provided, That for the purposes of this subsection
"electronic data processing services" means: (1) The processing
of another's data, including all processes incident to processing
of data such as keypunching, keystroke verification, rearranging
or sorting of previously documented data for the purpose of data
entry or automatic processing and changing the medium on which
data is sorted, whether these processes are done by the same
person or several persons; and (2) providing access to computer equipment for the purpose of processing data or examining or
acquiring data stored in or accessible to such computer
equipment;
(z) Tuition charged for attending educational summer camps;
(aa) Sales of building materials or building supplies or
other property to an organization qualified under Section
501(c)(3) or (c)(4) of the Internal Revenue Code of 1986, as
amended, which are to be installed in, affixed to or incorporated
by such organization or its agent into real property, or into a
building or structure which is or will be used as permanent
low-income housing, transitional housing, emergency homeless
shelter, domestic violence shelter or emergency children and
youth shelter if such shelter is owned, managed, developed or
operated by an organization qualified under Section 501(c)(3) or
(c)(4) of the Internal Revenue Code of 1986, as amended;
(bb) Dispensing of services performed by one corporation for
another corporation when both corporations are members of the
same controlled group. Control means ownership, directly or
indirectly, of stock possessing fifty percent or more of the total combined voting power of all classes of the stock of a
corporation entitled to vote or ownership, directly or
indirectly, of stock possessing fifty percent or more of the
value of the corporation;
(cc) Food for the following shall be exempt:
(1) Food purchased or sold by public or private schools,
school sponsored student organizations or school sponsored
parent-teacher associations to students enrolled in such school
or to employees of such school during normal school hours; but
not those sales of food made to the general public;
(2) Food purchased or sold by a public or private college or
university or by a student organization officially recognized by
such college or university to students enrolled at such college
or university when such sales are made on a contract basis so
that a fixed price is paid for consumption of food products for
a specific period of time without respect to the amount of food
product actually consumed by the particular individual
contracting for the sale and no money is paid at the time the
food product is served or consumed;
(3) Food purchased or sold by a charitable or private
nonprofit organization, a nonprofit organization or a
governmental agency under a program to provide food to low-income
persons at or below cost;
(4) Food sold in an occasional sale by a charitable or
nonprofit organization including volunteer fire departments and
rescue squads, if the purpose of the sale is to obtain revenue
for the functions and activities of the organization and the
revenue so obtained is actually expended for that purpose;
(5) Food sold by any religious organization at a social or
other gathering conducted by it or under its auspices, if the
purpose in selling the food is to obtain revenue for the
functions and activities of the organization and the revenue
obtained from selling the food is actually used in carrying on
such functions and activities:
Provided, That purchases made by
such organizations shall not be exempt as a purchase for resale;
(dd) Sales of food by little leagues, midget football
leagues, youth football or soccer leagues and similar types of
organizations, including scouting groups and church youth groups, if the purpose in selling the food is to obtain revenue for the
functions and activities of the organization and the revenues
obtained from selling the food is actually used in supporting or
carrying on functions and activities of the groups:
Provided,
That such purchases made by such organizations shall not be
exempt as a purchase for resale;
(ee) Charges for room and meals by fraternities and
sororities to their members:
Provided, That such purchases made
by a fraternity or sorority shall not be exempt as a purchase for
resale;
(ff) Sales of or charges for the transportation of
passengers in interstate commerce;
(gg) Sales of tangible personal property or services to any
person which this state is prohibited from taxing under the laws
of the United States or under the constitution of this state;
(hh) Sales of tangible personal property or services to any
person who claims exemption from the tax imposed by this article
or article fifteen-a of this chapter pursuant to the provisions
of any other chapter of this code;
(ii) Charges for the services of opening and closing a
burial lot;
(jj) Sales of livestock, poultry or other farm products in
their original state by the producer thereof or a member of the
producer's immediate family who is not otherwise engaged in
making retail sales of tangible personal property; and sales of
livestock sold at public sales sponsored by breeders or registry
associations or livestock auction markets:
Provided, That the
exemptions allowed by this subsection shall apply to sales made
on or after the first day of July, one thousand nine hundred
ninety, and may be claimed without presenting or obtaining
exemption certificates:
Provided, however, That the farmer shall
maintain adequate records;
(kk) Sales of motion picture films to motion picture
exhibitors for exhibition if the sale of tickets or the charge
for admission to the exhibition of the film is subject to the tax
imposed by this article and sales of coin-operated video arcade
machines or video arcade games to a person engaged in the
business of providing such machines to the public for a charge upon which the tax imposed by this article is remitted to the tax
commissioner:
Provided, That the exemption provided in this
subsection shall apply to sales made on or after the first day of
July, one thousand nine hundred ninety, and may be claimed by
presenting to the seller a properly executed exemption
certificate;
(ll) Sales of aircraft repair, remodeling and maintenance
services when such services are to an aircraft operated by a
certified or licensed carrier of persons or property, or by a
governmental entity, or to an engine or other component part of
an aircraft operated by a certificated or licensed carrier of
persons or property, or by a governmental entity and sales of
tangible personal property that is permanently affixed or
permanently attached as a component part of an aircraft owned or
operated by a certificated or licensed carrier of persons or
property, or by a governmental entity, as part of the repair,
remodeling or maintenance service and sales of machinery, tools
or equipment, directly used or consumed exclusively in the
repair, remodeling or maintenance of aircraft, aircraft engines or aircraft component parts, for a certificated or licensed
carrier of persons or property, or for a governmental entity;
(mm) Sales of tangible personal property and services to a
person entitled to claim the tax credit for investment in certain
management information services facilities allowed under section
three-c, article thirteen-d of this chapter, pursuant to the
issuance of a management information services tax credit
certification by the tax commissioner in accordance with
subsection (e) of said section, when such property or services
are directly used or consumed by the purchaser in the operation
of the management information services facility, as defined in
section two of this article for which credit is allowed under
section three-c, article thirteen-d of this chapter. Tangible
personal property, or services, directly used or consumed in the
operation of a management information services facility includes
only: (1) Computer processing and telecommunications equipment;
(2) data storage and input/output devices; (3) disaster recovery
services; (4) supplies; (5) application, telecommunication and
operating system software; (6) repair and maintenance of any of the aforesaid items; and (7) other tangible personal property or
services directly used or consumed in the operation of a
management information services facility:
Provided, That the
property is purchased or leased after the thirty-first day of
March, one thousand nine hundred ninety-one. This exemption
shall not apply to tangible personal property, or services, that
are not directly used or consumed in the operation of a
management information services facility, or to gasoline or
special fuel:
Provided, however, That nothing in this paragraph
shall be construed to limit, exclude or preclude the application
or availability of any other exemption set forth in this section,
or elsewhere in this code, which might otherwise apply to any
sale of tangible personal property or services;
(nn) Charges for memberships or services provided by health
and fitness organizations relating to personalized fitness
programs;
(oo) Sales of services by individuals who baby-sit for a
profit:
Provided, That the gross receipts of the individual from
the performance of baby-sitting services do not exceed five thousand dollars in a taxable year;
and
(pp) A corporation or organization which is a not-for-profit
entity which charges membership dues utilized for and
contributing significantly to traffic and pedestrian safety and
education programs whether or not the corporation or organization
is exempt from income tax under Section 501(c)(3) of the Internal
Revenue Code of 1986, as amended;
and
(qq) Sales of property or services to persons within the
state engaged in the production or manufacturing of value-added
products, as defined in article twenty-one, chapter thirty-one of
this code.
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-24a. Tax credit for value-
added products from raw
agricultural products; regulations.
(a) Effective the first day of July, one thousand nine
hundred ninety-five, notwithstanding any provisions of this code
to the contrary, any company engaged in the production of
value-added products from raw agricultural products as defined in
article twenty-one, chapter thirty-one of this code shall be
allowed a credit, in the amount of two thousand dollars for each taxable year against the tax imposed by this article, for a
period of five years from the date the company becomes subject to
this article:
Provided, That only such companies which are
incorporated or otherwise come to exist within the state after
the effective date of this section shall be eligible for such
credit.
(b) The tax commissioner may prescribe such regulations as
may be necessary to carry out the purposes of this section.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-22a. Tax credit for value-added products from raw
agricultural products; regulations.
(a) Effective the first day of July, one thousand nine
hundred ninety-five, notwithstanding any provisions of this code
to the contrary, any company engaged in the production of
value-added products from raw agricultural products as defined in
article twenty-one, chapter thirty-one of this code shall be
allowed a credit, in the amount of two thousand dollars for each
taxable year against the tax imposed by this article, for a
period of five years from the date the company becomes subject to
this article:
Provided, That only such companies which are incorporated or otherwise come to exist within the state after
the effective date of this section shall be eligible for such
credit.
(b) Effective the first day of July, one thousand nine
hundred ninety-five, any company engaged in the production of
value-added products shall be allowed a tax credit of two dollars
for every one hour spent by an employee in training to learn a
skill specific to such production or to operate equipment or
machinery specific to such production.
(c) The tax commissioner may prescribe such regulations as
may be necessary to carry out the purposes of this section.
CHAPTER 19. AGRICULTURE.
ARTICLE 1. DEPARTMENT OF AGRICULTURE.
§19-1-3a. Marketing and development division; duties;
continuation.
(a) In recognition that article ten, chapter four of this
code requires a performance audit of the rural resource division
of the department of agriculture and that performance standards
must be stated before such audit can be performed, the rural
resources division is hereby formally established and renamed the marketing and development division in the department of
agriculture. The duties of the division are to establish
marketing, promotional and development programs to advance West
Virginia agriculture in the domestic and international markets;
to provide grading, inspection and market news services to the
various elements of the West Virginia agricultural industry;
and
to regulate and license individuals involved in the marketing of
agricultural products;
and to administer the West Virginia
agricultural industries development assistance fund as set forth
in article twenty-one, chapter thirty-one of this code; and to
provide liaison services between agricultural industries and
municipal and county governments in order to encourage these
governments to create incentives for the development of such
industries.
(b) After having conducted a performance and fiscal audit
through its joint committee on government operations, pursuant to
section nine, article ten, chapter four of this code, the
Legislature hereby finds and declares the marketing and
development division should be continued and reestablished. Accordingly, notwithstanding the provisions of section four,
article ten, chapter four of this code, the marketing and
development division shall continue to exist until the first day
of July, one thousand nine hundred ninety-five.
CHAPTER 31. CORPORATIONS.
ARTICLE 21. THE WEST VIRGINIA AGRICULTURAL INDUSTRIES
DEVELOPMENT ASSISTANCE FUND.
§31-21-1. Short title.
This article shall be known and may be cited as "The West
Virginia Agricultural Industries Development Assistance Fund
Act."
§31-21-2. Purposes of article.
The purposes of this article are to provide for an
agricultural industries development fund to promote, assist,
encourage and advance the agricultural industries of the state;
to furnish money and credit to new and existing agricultural
industry enterprises in the state; and to provide for the
administration of the aforementioned fund. Such purposes are
hereby declared to be public purposes for which money of the fund
may be spent and are purposes which will promote business opportunities, gainful employment for citizens, and the general
welfare of the state.
§31-21-3. Definitions.
As used in this article:
(a) "Department" means the department of agriculture of the
state of West Virginia.
(b) "Division" means the marketing and development division
of the department;
(c) "Raw agricultural product" means (1) any form of
vegetation cultivated and harvested which may be processed from
its natural form into a value-added product; (2) any form of
livestock, game animal or aquatic animal which may be processed
from its natural form into a value-added product.
(d) "Value-added product" means any product which is derived
from processing a raw agricultural product, whether for human
consumption or for other use.
(e) "Agricultural industry" means any person or entity
engaged in the processing of raw agricultural products from their
natural form into a value-added product, or in the processing of
a value-added product into another form of value-added product.
(f) "Responsible buyer" means any person, partnership, firm,
corporation or company organized for profit deemed by the
division, after proper investigation, to be financially
responsible to assume all obligations prescribed by the division
in the operations of an agricultural industry enterprise.
(g) "Responsible tenant" means any person, partnership,
firm, corporation or company organized for profit deemed by the
division to be financially responsible to assume all obligations
prescribed by the division in the operations of an agricultural
industry enterprise.
(h) "Responsible borrower" means any person, partnership,
firm, corporation or company deemed by the division to be
financially responsible to assume all obligations prescribed by
the division in the loan of funds for the operation of an
agricultural industry enterprise by said responsible borrower.
§31-21-4. Fund created; marketing and development division
responsible for administration.
(a) There is hereby created a monetary reserve to be known
as the West Virginia agricultural industries development
assistance fund.
(b) The division shall oversee the administration of the
fund. The division shall add to its staff whatever personnel it
deems necessary for the efficient administration of this fund.
§31-21-5. Duties and powers of the division regarding the
administration of the fund.
(a) The division shall, upon proper application, grant loans
in excess of ten thousand dollars to responsible borrowers for
the development of new agricultural industries enterprises or for
the expansion or modification of existing agricultural
industries. Interest on such loans shall not begin to accrue
until three years after the loan is granted. The division shall
provide for the repayment of such loans.
(b) The division shall, upon proper application, endow
grants of money, not to exceed five thousand dollars, to a
person, partnership, firm, company or corporation to be used in
the development of new agricultural industries or in the
expansion or modification of existing agricultural industries.
(c) The division shall take title by foreclosure to any
agricultural industry enterprise where such acquisition is
necessary to protect any loan previously made thereto by the division and sell, transfer and convey any such enterprise to any
responsible buyer, or lease such enterprise to a responsible
tenant in the event that transfer and conveyance cannot be
effected with reasonable promptness.
(d) The division may accept grants from, and enter into
contracts with, any federal or state agency, county commission or
municipality.
(e) The division shall promulgate legislative rules, in
accordance with chapter twenty-nine-a of this code, to implement
this section and shall establish procedures by which a person,
partnership, firm, company or corporation may make application
for loans or grants.
(f) The division shall set up the fund in a bank authorized
to do business in West Virginia. All receipts from whatever
source shall be deposited therein.
§31-21-6. Moneys.
The department, the West Virginia University agricultural
extension research and development fund, and the West Virginia
University entrepreneurial development center fund shall
collaborate to identify sources of grants, loans, and other moneys and to develop a strategic plan for raising moneys for the
purposes of this article. The Legislature may from time to time
allocate moneys to the fund to further the goals of this article.
§31-21-7. Audits.
The accounts and books of the fund, including its receipts,
disbursements, contracts, deeds of trust, investments, and other
information relating to its finances and administration shall be
examined and audited from time to time by the state's auditing
entities in accordance with applicable statutes.
NOTE: The purpose of this bill is to provide incentives for
agricultural enterprises in the state to produce value-added
products from raw agricultural products.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
§§11-23-24a, 11-24-22a and §31-21 are new; therefore,
strike-throughs and underscoring have been omitted.