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Introduced Version House Bill 2740 History

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Key: Green = existing Code. Red = new code to be enacted
H. B. 2740


(By Delegates Beach, Evans, Michael,

J. Martin, Willison and Mezzatesta)

[Introduced January 10, 1996; 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 their 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.
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