Senate Bill No. 1008
(By Senators Lucht and Burdette, Mr. President)
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[Introduced March 8, 1994; referred to the
Committee on Finance.]
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A BILL to repeal section thirty-a, article fifteen, chapter
eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to amend and reenact section
three, article one, chapter five-g of said code; to amend
and reenact section thirty, article fifteen, chapter eleven
of said code; to amend and reenact sections two, six, eight
and fifteen, article nine-d, chapter eighteen of said code;
to amend and reenact section eighteen, article twenty-two,
chapter twenty-nine of said code; and to amend and reenact
section ten, article twenty, chapter thirty-one of said
code, all relating to dedicating lottery proceeds for
financing revenue bonds to be issued by the school building
authority and the regional jail and correctional facility
authority; setting requirements for contracts for
architectural and engineering services on projects funded by
school building authority moneys; transferring dedicated
consumers sales tax revenues to the general fund of the
state; defining terms relating to the school building
authority; creating special funds in the state treasury for
the school building authority; permitting the school
building authority to pledge funds as security for revenue
bonds; providing for issuance and tax-exempt status of such
revenue bonds; specifying use of bond proceeds; providing
for distribution of school building authority moneys;
dedicating state lottery proceeds for specified purposes;
providing for annual certification of amounts needed to pay
principal, interest and coverage ratios for each fiscal year
on bonds to be issued by the school building authority and
the regional jail and correctional facility authority;
limiting dollar amounts of lottery proceeds that may be used
to finance such bonds; specifying uses of moneys in the
regional jail and correctional facility development fund;
and providing for payment of certain lottery proceeds into
said fund for use in bond financing.
Be it enacted by the Legislature of West Virginia:
That section thirty-a, article fifteen, chapter eleven of
the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be repealed; that section three,
article one, chapter five-g of said code be amended and
reenacted; that section thirty, article fifteen, chapter
eleven of said code be amended and reenacted; that sections
two, six, eight and fifteen, article nine-d, chapter
eighteen of said code be amended and reenacted; that section
eighteen, article twenty-two, chapter twenty-nine of said
code be amended and reenacted, and that section ten, article
twenty, chapter thirty-one of said code be amended and
reenacted, all to read as follows:
CHAPTER 5G. PROCUREMENT OF ARCHITECT - ENGINEER
SERVICES BY STATE AND ITS SUBDIVISIONS.
§5G-1-3. Contracts for architectural and engineering services;
selection process where total project costs are estimated to
cost two hundred fifty thousand dollars or more.
In the procurement of architectural and engineering services
for projects estimated to cost two hundred fifty thousand dollars
or more, the director of purchasing shall encourage such firms
engaged in the lawful practice of the profession to submit an
expression of interest, which shall include a statement of
qualifications and performance data, and may include anticipated
concepts and proposed methods of approach to the project. All
such jobs shall be announced by public notice published as a
Class II legal advertisement in compliance with the provisions of
article three, chapter fifty-nine of this code. A committee of
three to five representatives of the agency initiating the
request shall evaluate the statements of qualifications and
performance data and other material submitted by interested firms
and select three firms which, in their opinion, are best
qualified to perform the desired service:
Provided, That on
projects funded wholly or in part by school building authority
moneys, two of said three firms shall have offices within this
state. Interviews with each firm selected shall be conducted and
the committee shall conduct discussions regarding anticipated
concepts and proposed methods of approach to the assignment. Thecommittee shall then rank, in order of preference, no less than
three professional firms deemed to be the most highly qualified
to provide the services required, and shall commence scope of
service and price negotiations with the highest qualified
professional firm for architectural or engineering services or
both. Should the agency be unable to negotiate a satisfactory
contract with the professional firm considered to be the most
qualified, at a fee determined to be fair and reasonable, price
negotiations with the firm of second choice shall commence.
Failing accord with the second most qualified professional firm,
the committee shall undertake price negotiations with the third
most qualified professional firm. Should the agency be unable to
negotiate a satisfactory contract with any of the selected
professional firms, it shall select additional professional firms
in order of their competence and qualifications and it shall
continue negotiations in accordance with this section until an
agreement is reached:
Provided, however, That county boards of
education may either elect to start the selection process over in
the original order of preference or it may select additional
professional firms in order of their competence and
qualifications and it shall continue negotiations in accordance
with this section until an agreement is reached.
CHAPTER 11. TAXATION.
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-30. Proceeds of tax; dedication of certain revenues.
The proceeds from the tax imposed by this article shall be
deposited in the general revenue fund of the state beginning thefirst day of July, one thousand nine hundred ninety-four, except
as otherwise expressly provided in this article. Prior to the
said first day of July, the proceeds of this tax shall, except as
otherwise expressly provided in this article, be deposited as
provided in chapter three, acts of the Legislature, second
extraordinary session, one thousand nine hundred ninety-three,
and, for such purpose, such prior law is fully preserved. On the
said first day of July, the balance in "WVFIMS" account number
fund 3962, fiscal year one thousand nine hundred ninety-four,
organization 0402, and in "WVFIMS" account number fund 6676,
fiscal year one thousand nine hundred ninety-four, organization
0615, shall be transferred to the general revenue fund.
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-2. Definitions.
The following terms, wherever used or referred to in this
article, have the following meanings, unless a different meaning
clearly appears from the context:
(1) "Authority" means the school building authority of West
Virginia or, if said authority shall be abolished, any board or
officer succeeding to the principal functions thereof, or to whom
the powers given to said authority shall be given by law;
(2) "Bonds" means bonds issued by the authority pursuant to
this article;
(3) "Cost of project" means the cost of construction,
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 convenient in connection with placing the foregoing
into operation; 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;
(4) "Facilities plan" means the regional plan for school
facilities required prior to the distribution of state funds to
any county board pursuant to section fifteen of this article;
(5) "Project" or "capital improvement project" means the new
construction, major renovation, repair and safety upgrading of
facilities, buildings and structures for school purposes
including the acquisition of land for current or future use in
connection therewith, equipment, machinery, furnishings,
installation of utilities and other similar items convenient in
connection with placing the foregoing into operation, but may not
include such items as books, fuel, supplies and other items which
are customarily deemed to result in a current operating charge;
(6) "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; and
(7) "Revenue" or "revenues" means moneys deposited in the
school building capital improvements fund pursuant to the
operation of section ten, article nine-a of this chapter; moneys
deposited in the school building debt service fund pursuant to
the operation of section eighteen, article twenty-two, chapter
twenty-nine of this code; any moneys received, directly orindirectly, from any source for the use of all or any part of any
project completed pursuant to this article; and any other moneys
received by the authority for the purposes of this article.
§18-9D-6. School building capital improvements fund in state
treasury; school building debt service fund in state
treasury; collections to be paid into special funds;
authority to pledge such collections as security for 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 authority shall have authority to pledge
all or such part of the revenues paid into the school building
capital improvements fund as may be needed to meet the
requirements of any revenue bond issue or issues authorized by
this article prior to the first day of January, one thousand nine
hundred ninety-four, 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 such
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 such revenue bond issue or issues
when other moneys pledged may be insufficient therefor, including
such additional protective pledge of revenues as the authority in
its discretion has provided by resolution authorizing the issue
of such bonds or in any trust agreement made in connection
therewith. The authority may further provide in such resolutionand in such trust agreement for such priorities on the revenues
paid into such school building capital improvements 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 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 pursuant to this article have been satisfied, may be used
for the redemption of any of the outstanding bonds issued
hereunder which by their terms are then redeemable, or for the
purchase of such 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.
The school building authority, in its discretion, may use
the moneys in the school building capital improvements fund to
finance the cost of projects on a cash basis. Any pledge of
moneys in such fund for revenue bonds shall be a prior and
superior charge on such fund over the use of any of the moneys in
such fund to pay for the cost of any project on a cash basis:
Provided, That any expenditures from such 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 hereby created in the state treasury a special
fund named the school building debt service fund into which shallbe deposited on and after the first day of April, one thousand
nine hundred ninety-four, 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:
Provided, That moneys so deposited 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. The authority may further
provide in the resolution and in the trust agreement for
priorities on the revenues paid into the school building debt
service 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 article. On or prior to the first day of
May of each year, commencing the first day of May, one thousand
nine hundred ninety-four, the authority shall certify to the
state lottery director the principal and interest 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:
Provided, however, That
before the first day of May, one thousand nine hundred ninety-
four, the authority shall also certify to the lottery director ofthe state the principal and interest requirements for the fiscal
year ending on the thirtieth day of June, one thousand nine
hundred ninety-four, on any revenue bonds issued, or to be
issued, on or after the first day of January, one thousand nine
hundred ninety-four.
After the authority has issued bonds authorized by this
article, and after the requirements of all funds have been
satisfied, including 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 hereunder
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 forthwith canceled and shall not again be
issued.
(c) The Legislature hereby finds and declares that the
supreme court of appeals of West Virginia has held that the
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
ten of the constitution of West Virginia. The Legislature
further finds and declares that the financial capacity of a
county to construct facilities depends on the county's bonding
capacity (local property wealth) and on voter willingness to pass
bond issues instead of criteria related to educational needs, orupon the ability of the school building authority created in this
article to issue bonds that comply with said holding of the West
Virginia supreme court of appeals. The Legislature hereby
further finds and declares that the continued construction and
improvement of school building facilities and the dedication of
lottery proceeds pursuant to section eighteen, article
twenty-two, chapter twenty-nine of this code to finance such
construction and improvement are for the use and benefit of the
state, its counties, its municipalities and its other political
subdivisions, and such construction and improvement serves the
vital public purpose of providing for a thorough and efficient
system of free schools in this state. The Legislature hereby
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 revenue to a special fund for the purpose 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 utilized for the
construction and improvement of school building facilities. The
Legislature hereby 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 section four, article ten; section six,
article ten; and section one, article twelve of the constitution
of West Virginia.
§18-9D-8. Issuance of revenue bonds; use of proceeds; bonds
exempt from taxation.
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 and provide for the issuance of bonds
in amounts sufficient, when sold as hereinafter provided, to
provide moneys considered sufficient by the authority to pay such
costs, less the amounts of any other funds available for said
costs or from any appropriation, grant or gift therefor:
Provided, That bond issues from which bond revenues are to be
distributed in accordance with section fifteen of this article
shall not be required to set forth the proposed projects in the
resolution. Such resolution shall prescribe the rights and
duties of the bondholders and the school building authority, and
for such purpose may prescribe the form of the trust agreement
hereinafter referred to. 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
thereof; and be entitled to such priorities on the revenues paid
into the school building authority capital improvements fund asmay be provided in the resolution authorizing the issuance of the
bonds or in any trust agreement made in connection therewith:
Provided, however, That revenue bonds issued on or after the
first day of January, one thousand nine hundred ninety-four which
are secured by lottery proceeds shall mature at such time or
times not exceeding ten years from their respective dates. 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 thereto 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 such officers before the delivery of such bonds, such
signatures shall nevertheless be valid and sufficient for all
purposes the same as if such officers had remained in office
until such delivery. Such revenue bonds shall be sold in such
manner as the authority may determine to be for the best
interests of the state.
Any pledge of revenues for such revenue bonds made by the
school building authority shall be valid and binding between the
parties from the time the pledge is made; and the revenues so
pledged shall immediately be subject to the lien of such pledge
without any further physical delivery thereof or further act.
The lien of such pledge shall be valid and binding against all
parties having claims of any kind in tort, contract or otherwise,
irrespective of whether such parties have notice of the lien of
such pledge, and such pledge shall be a prior and superior chargeover any other use of such revenues so pledged.
The proceeds of such 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 such manner and with such restrictions, if any, as the
authority may provide in the resolution authorizing the issuance
of such bonds or in the trust agreement hereinafter referred to
securing the same. If the proceeds of such bonds, by error in
calculations or otherwise, shall be 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, such additional bonds
shall be considered to be of the same issue, and shall be
entitled to payment from the same fund, without preference or
priority, as the bonds before issued for such projects. If the
proceeds of bonds issued for such projects exceed the cost
thereof, the surplus may be used for such other projects as the
school building authority may determine or in such other manner
as the resolution authorizing such bonds may provide. 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 such
definitive bonds.
After the issuance of any of such revenue bonds, the
revenues pledged therefor shall not be reduced as long as any of
such revenue bonds are outstanding and unpaid except under suchterms, provisions and conditions as shall be contained in the
resolution, trust agreement or other proceedings under which such
revenue bonds were issued.
Such revenue bonds and the revenue refunding bonds, and
bonds issued for combined purposes shall, together with the
interest thereon, be exempt from all taxation by the state of
West Virginia, or by any county, school district, municipality or
political subdivision thereof.
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 therewith, for expenditure in accordance with
legislative appropriation or allocation of appropriation.
§18-9D-15. Legislative intent; distribution of money.
(a) It is the intent of the Legislature to empower the
school building authority to facilitate and provide state funds
for the construction and maintenance 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
facilities 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 no more than three percent of the sumof moneys that are determined by the authority to be available
for distribution during the then current fiscal year from: (1)
The increase in local share 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 lottery
proceeds are pledged as security; and (3) any other moneys
received by the authority may be allocated and may be expended by
the authority for projects 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.
Fifty percent of the remaining available funds shall be
allocated and distributed to each county board on the basis of
its net enrollment as defined in section two, article nine-a of
this chapter:
Provided, That such moneys may not be distributed
to any county board whose region does not have an approved
region-wide facilities plan or to any county board that is not
prepared to commence expenditures of such funds during the fiscal
year in which the moneys are distributed:
Provided, however,
That any moneys allocated to a county board and not distributed
to that county board shall be deposited in an account to the
credit of that county board, such principal amount to remain to
the credit of and available to the county board for a period of
three years. Any moneys which are unexpended after a three-year
period shall be redistributed on the basis of net enrollment to
those county boards then eligible for the receipt of net
enrollment distributions in that fiscal year:
Provided, further,That the school building authority may grant an extension of up
to two years for use of net enrollment moneys, upon the petition
of a county board.
The remaining fifty percent of moneys available for
distribution shall be allocated and expended on the basis of need
and efficient use of resources, such basis to be determined by
the authority in accordance with the provisions of section
sixteen of this article.
No local matching funds may be required under the provisions
of this subsection, and any county board may use the state moneys
provided herein in conjunction with local funds derived from
bonding or other source. Any county board may dedicate any
allocations of state moneys pursuant to this subsection to the
payment of local bonds used for purposes encompassed in an
approved facilities plan or for the payment of bonds that are
issued by the authority for the benefit of that county that are
in addition to the bond moneys distributed in accordance with
this subsection.
Moneys made available pursuant to this subsection that shall
be expended on projects that benefit more than one district shall
be apportioned among the districts in accordance with the formula
encompassed in that portion of the facilities plan that addresses
the project designed to benefit more than one district.
(c) To encourage regional educational service agencies and
county boards to proceed promptly with facilities planning and to
prepare for the expenditure of any state moneys derived from the
sources described in subsection (b) of this section, any countyboard failing to expend money within three years of the
allocation thereto shall forfeit such allocation, unless an
extension of up to two years is granted by the school building
authority. Such county board shall thereafter be ineligible for
further allocations pursuant to subsection (b), until the county
board is ready to expend funds in accordance with an approved
facilities plan. Any amount so forfeited shall be added to the
total funds available for allocation and distribution in the next
ensuing fiscal year.
(d) Distribution to the county boards may be in a lump sum
or in accordance with a schedule of payments adopted by the
authority pursuant to such guidelines as it shall adopt.
§29-22-18. State lottery fund; appropriations and deposits; not
part of general revenue; no transfer of state funds after
initial appropriation; use and repayment of initial
appropriation; allocation of fund for prizes, net profit and
expenses; surplus; state lottery education fund; state
lottery senior citizens fund; allocation and appropriation
of net profits.
(a) There is hereby continued a special fund in the state
treasury which shall be designated and known as the "state
lottery fund." The fund shall consist of all appropriations to
the fund and all interest earned from investment of the fund, and
any gifts, grants or contributions received by the fund. All
revenues received from the sale of lottery tickets, materials and
games shall be deposited with the state treasurer and placed into
the "state lottery fund." The revenue shall be disbursed in themanner herein provided for the purposes stated herein and shall
not be treated by the auditor and treasurer as part of the
general revenue of the state.
(b) No appropriation, loan or other transfer of state funds
may be made to the commission or lottery fund after the initial
appropriation.
(c) A minimum annual average of forty-five percent of the
gross amount received from each lottery shall be allocated and
disbursed as prizes.
(d) Not more than fifteen percent of the gross amount
received from each lottery may be allocated to and may be
disbursed as necessary for fund operation and administration
expenses.
(e) The excess of the aggregate of the gross amount received
from all lotteries over the sum of the amounts allocated by
subsections (c) and (d) shall be allocated as net profit. The
director is authorized to expend the necessary percentage of the
amount allocated as net profit, not to exceed six percent of the
gross amount received, for the purposes of entering into
contractual arrangements for the acquisition, financing, lease
and lease-purchase, and other financing transactions, of lottery
goods and services, including tickets, equipment, machinery,
electronic computer systems and terminals, and supplies and
maintenance therefor, for the first thirty-six months of
operation, and may apportion the costs, expenses and expenditures
related thereto among the commission, vendor or vendors and
licensed lottery sales agents. In the event that the percentageallotted for operations and administration generates a surplus,
the surplus will be allowed to accumulate to an amount not to
exceed two hundred fifty thousand dollars. On a monthly basis
the director shall report to the joint committee on government
and finance of the Legislature any surplus in excess of two
hundred fifty thousand dollars and remit to the state treasurer,
by electronic funds transfer or by other means, the entire amount
of those surplus funds in excess of two hundred fifty thousand
dollars which shall be allocated as net profit.
(f) Annually, the Legislature shall appropriate all of the
amounts allocated as net profits above, in such proportions as it
deems beneficial to the citizens of this state, to: (1) the
lottery education fund created in subsection (g) of this section;
(2) the school building debt service fund created in section six,
article nine-d, chapter eighteen of this code, in accordance with
subsection (h) of this section and the dollar amount limitations
set forth therein regarding the use of lottery proceeds; (3) the
lottery senior citizens fund created in subsection (i) of this
section; (4) the division of tourism and parks created in article
one, chapter five-b of this code, in accordance with subsection
(j) of this section; and (5) the regional jail and correctional
facility development fund created in section ten, article twenty,
chapter thirty-one of this code, in accordance with subsection
(k) of this section and the dollar amount limitations set forth
therein regarding the use of lottery proceeds.
(g) There is hereby continued a special fund in the state
treasury which shall be designated and known as the "lotteryeducation fund." The fund shall consist of the amounts allocated
pursuant to subsection (f) of this section, which amounts shall
be deposited into the lottery education fund by the state
treasurer. The lottery education fund shall also consist of all
interest earned from investment of the lottery education fund,
and any other appropriations, gifts, grants, contributions or
moneys received by the lottery education fund from any source.
The revenues received or earned by the lottery education fund
shall be disbursed in the manner provided below and shall not be
treated by the auditor and treasurer as part of the general
revenue fund of the state. Annually, the Legislature shall
appropriate the revenues received or earned by the lottery
education fund to the state system of public and higher education
for such educational programs as it considers beneficial to the
citizens of this state.
(h) Beginning on or before the twenty-eighth day of July,
one thousand nine hundred ninety-four, and continuing on or
before the twenty-eighth day of each succeeding month thereafter,
there shall be allocated monthly by the lottery director as a
first priority from the net profits of the lottery for the
preceding month, on a co-equal basis with the allocation of said
net profits to the regional jail and correctional facility
development fund as provided in subsection (k) of this section,
an amount equal to one-tenth of the projected annual principal,
interest and coverage ratio requirements on any and all revenue
bonds and refunding bonds issued, or to be issued, on or after
the first day of January, one thousand nine hundred ninety-four,for which bond moneys in the school building debt service fund
have been pledged, or will be pledged, for repayment pursuant to
section six, article nine-d, chapter eighteen of this code, such
principal, interest and coverage ratio requirements having been
certified to the lottery director in accordance with the
provisions of said section:
Provided, That in no event shall the
total allocation of said net profits to be paid into the school
building debt service fund, as provided in this section, in any
fiscal year exceed the lesser of the principal, interest and
coverage ratio requirements certified to the lottery director as
aforesaid, or eighteen
million dollars:
Provided, however, That
any amount, not to exceed nine
million dollars in any fiscal
year, certified to the lottery director pursuant to section six,
article nine-d, chapter eighteen of this code, which amount
constitutes any coverage ratio requirement certified in
accordance with said section, may be reallocated by the lottery
director upon receipt by the lottery director of a certification
from the executive director of the school building authority that
said amount for any coverage ratio requirement may be released
because the principal and interest requirements certified for
that fiscal year pursuant to said section have been fully
satisfied. The amounts allocated by this subsection shall be
deposited on a monthly basis into the school building debt
service fund created pursuant to section six, article nine-d,
chapter eighteen of this code.
(i) There is hereby continued a special fund in the state
treasury which shall be designated and known as the "lotterysenior citizens fund." The fund shall consist of the amounts
allocated pursuant to subsection (f) of this section, which
amounts shall be deposited into the lottery senior citizens fund
by the state treasurer. The lottery senior citizens fund shall
also consist of all interest earned from investment of the
lottery senior citizens fund, and any other appropriations,
gifts, grants, contributions or moneys received by the lottery
senior citizens fund from any source. The revenues received or
earned by the lottery senior citizens fund shall be disbursed in
the manner provided below and shall not be treated by the auditor
or treasurer as part of the general revenue of the state.
Annually, the Legislature shall appropriate the revenues received
or earned by the lottery senior citizens fund to such senior
citizens medical care and other programs as it considers
beneficial to the citizens of this state.
(j) The division of tourism and parks may use the amounts
allocated to it pursuant to subsection (f) of this section for
one or more of the following purposes: (1) The payment of any or
all of the costs incurred in the development, construction,
reconstruction, maintenance or repair of any project or
recreational facility, as such terms are defined in section
thirteen-a, article one, chapter five-b of this code, pursuant to
the authority granted to it under article one, chapter five-b of
this code; (2) the payment, funding or refunding of the principal
of, interest on, or redemption premiums on any bonds, security
interests or notes issued by the parks and recreation section of
the division of tourism and parks under article one, chapterfive-b of this code; or (3) the payment of any advertising and
marketing expenses for the promotion and development of tourism
or any tourist facility or attraction in this state.
(k) Beginning on or before the twenty-eighth day of July,
one thousand nine hundred ninety-four, and continuing on or after
the twenty-eighth day of each succeeding month thereafter, there
shall be allocated monthly by the lottery director as a first
priority from the net profits of the lottery for the preceding
month, on a co-equal basis with the allocation of said net
profits to the school building debt service fund as provided in
subsection (h) of this section, an amount equal to one-tenth of
the projected annual principal, interest and coverage ratio
requirements on any and all revenue bonds and refunding bonds
issued, or to be issued, on or after the first day of January,
one thousand nine hundred ninety-four, for which bond moneys in
the regional jail and correctional facility development fund have
been pledged, or will be pledged, for repayment pursuant to
section ten, article twenty, chapter thirty-one of this code,
such principal, interest and coverage ratio requirements having
been certified to the lottery director in accordance with the
provisions of said section:
Provided, That in no event shall the
total allocation of said net profits to be paid into the regional
jail and correctional facility development fund, as provided in
this section, in any fiscal year exceed the lesser of the
principal, interest and coverage ratio requirements certified to
the lottery director as aforesaid, or seven million, five hundred
thousand dollars:
Provided, however, That any amount, not toexceed three million, seven hundred fifty thousand dollars in any
fiscal year, certified to the lottery director pursuant to
section ten, article twenty, chapter thirty-one of this code,
which amount constitutes any coverage requirement certified in
accordance with said section, may be reallocated by the lottery
director upon receipt by the lottery director of a certification
from the regional jail and correctional facility authority that
said amount for any coverage ratio requirement may be released
because the principal and interest requirements certified for
that fiscal year pursuant to said section have been fully
satisfied. The amounts allocated pursuant to this subsection
shall be deposited on a monthly basis into the regional jail and
correctional facility development fund created pursuant to
section ten, article twenty, chapter thirty-one of this code.
CHAPTER 31. CORPORATIONS.
§31-20-10. Regional jail and correctional facility development
fund.
(a) The regional jail and correctional facility development
fund is hereby continued and shall be a special account in the
state treasury. The fund shall operate as a revolving fund
whereby all appropriations and payments thereto may be applied
and reapplied by the authority for the purposes of this article.
Separate accounts may be established within the special account
for the purpose of identification of various revenue resources
and payment of specific obligations.
(b) Revenues deposited into the fund shall be used to make
payments of interest and shall be pledged as security for bonds,security interests or notes issued by the authority pursuant to
this article.
(c) Whenever the authority determines that the balance in
the fund is in excess of the immediate requirements of this
article, it may request that such excess be invested until
needed. In such case such excess shall be invested in a manner
consistent with the investment of the temporary state funds.
Interest earned on any money invested pursuant to this section
shall be credited to the fund.
(d) If the authority determines that funds held in the fund
are in excess of the amount needed to carry out the purposes of
this article, it shall take such action as is necessary to
release such excess and transfer it to the general fund of the
state treasury.
(e) The fund shall consist of the following:
(1) Amounts raised by the authority by the sale of bonds or
other borrowing authorized by this article;
(2) Moneys collected and deposited in the state treasury
which are specifically designated by acts of the Legislature for
inclusion into the fund;
(3) Contributions, grants and gifts from any source, both
public and private, which may be used by the authority for any
project or projects;
(4) All sums paid by the counties pursuant to subsection (h)
of this section; and
(5) All interest earned on investments made by the state
from moneys deposited in this fund.
(f) The amounts deposited in the fund shall be accounted for
and expended in the following manner:
(1) Amounts raised by the sale of bonds or other borrowing
authorized by this article shall be deposited in a separate
account within the fund and expended for the purpose of
construction and renovation of correctional facilities and
regional jails for which need has been determined by the
authority;
(2) Amounts deposited from all other sources shall be
pledged first to the debt service on any bonded indebtedness or
other obligation incurred by borrowing of the authority;
(3) After any requirements of debt service have been
satisfied, the authority shall requisition from the fund such
amounts as are necessary to provide for payment of the
administrative expenses of this article;
(4) The authority shall requisition from the fund after any
requirements of debt service have been satisfied such amounts as
are necessary for the maintenance and operation of the
correctional facilities or regional jails or both that are
constructed pursuant to the plan required by this article and
shall expend such amounts for such purpose. The fund shall make
an accounting of all amounts received from each county by virtue
of any filing fees, court costs or fines required by law to be
deposited in the fund and amounts from the jail improvement funds
of the various counties. After the expenses of administration
have been deducted, the amounts expended in the respective
regions from such sources shall be in proportion to thepercentage the amount contributed to the fund by the counties in
each region bears to the total amount received by the fund from
such sources;
(5) Notwithstanding any other provisions of this article,
sums paid into the fund by each county pursuant to subsection (h)
of this section for each inmate shall be placed in a separate
account and shall be requisitioned from the fund to pay for the
costs specified in that subsection incurred at the regional jail
facility at which each such inmate was incarcerated; and
(6) Any amounts deposited in the fund from other sources
permitted by this article shall be expended in the respective
regions based on particular needs to be determined by the
authority.
(g) After a regional jail facility becomes available
pursuant to this article for the incarceration of inmates, each
county within the region shall incarcerate all persons whom the
county would have incarcerated in any jail prior to the
availability of the regional jail facility in the regional jail
facility except those whose incarceration in a local jail
facility used as a local holding facility is specified as
appropriate under the standards and procedures developed pursuant
to section nine of this article and who the sheriff or the
circuit court elects to incarcerate therein.
(h) When inmates are placed in a regional jail facility
pursuant to subsection (g) of this section, the county shall pay
into the regional jail and correctional facility development fund
a cost per day for each inmate so incarcerated to be determinedby the regional jail and correctional facility authority
according to criteria and by procedures established by
regulations pursuant to article three, chapter twenty-nine-a of
this code to cover the costs of operating the regional jail
facilities of this state to maintain each such inmate which costs
shall not include the cost of construction, acquisition or
renovation of said regional jail facilities:
Provided, That each
regional jail facility operating in this state shall keep a
record of the date and time of the incarceration of an inmate,
and a county may not be charged for a second day of incarceration
for an individual inmate until that inmate has remained
incarcerated for more than twenty-four hours. Thereafter, in
cases of continuous incarceration, subsequent per diem charges
shall be made upon a county only as subsequent intervals of
twenty-four hours pass from the original time of incarceration.
(i) On and after the first day of April, one thousand nine
hundred ninety-four, the amounts as and when specified in section
eighteen, article twenty-two, chapter twenty-nine of this code
shall be paid into the regional jail and correctional facility
development fund. All of the specified amounts deposited in this
fund shall be pledged to the repayment of the principal and
interest on any revenue bonds or refunding bonds authorized by
article twenty, chapter thirty-one of this code. On or prior to
the first day of May of each year, commencing the first day of
May, one thousand nine hundred ninety-four, the authority shall
certify to the state lottery director the principal and interest
requirements for the following fiscal year on any revenue bondsor refunding bonds issued or to be issued on or after the first
day of January, one thousand nine hundred ninety-four, and for
which moneys contained within the regional jail and correctional
facility development fund have been, or will be, pledged for
repayment pursuant to this section:
Provided, That before the
first day of May, one thousand nine hundred ninety-four, the
authority shall also certify to the state lottery director the
principal and interest requirements for the fiscal year ending on
the thirtieth day of June, one thousand nine hundred ninety-four,
on any revenue bonds issued by the authority on or after the
first day of January, one thousand nine hundred ninety-four.
(j) The Legislature hereby finds and declares that the
supreme court of appeals of West Virginia has held that the
revenue bonds authorized under the school building authority act,
as enacted in article nine-d, chapter eighteen of this code 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 ten of the constitution of West Virginia.
The Legislature hereby further finds and declares that the
continued construction and improvement of jail and correctional
facilities and the dedication of lottery proceeds pursuant to
section eighteen, article twenty-two, chapter twenty-nine of this
code to finance such construction and improvement are for the use
and benefit of the state, its counties, its municipalities and
its other political subdivisions, and that such construction and
improvement serve the vital public purpose of ensuring the
physical safety of each citizen and the public at large. TheLegislature hereby 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 revenue to a special fund for the purpose of
paying the debt service on bonds and refunding bonds issue
subsequent to the first day of January, one thousand nine hundred
ninety-four, the proceeds of which are to be utilized for the
construction and improvement of jails and correctional
facilities. The Legislature hereby 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 section four, article ten;
section six, article ten; and section one, article twelve of the
constitution of West Virginia.