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Engrossed Version Senate Bill 449 History

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Key: Green = existing Code. Red = new code to be enacted
ENGROSSED

COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 449

(By Senators Tomblin, Mr. President, and Boley,

By Request of the Executive)

____________

[Originating in the Committee on Finance;
reported February 28, 1996.]

____________

A BILL to amend and reenact section eighteen, article twenty-two, chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend article fifteen, chapter thirty-one of said code by adding thereto a new section, designated section six-b, all relating to developing a West Virginia educational center for arts and sciences; allocation of state lottery fund; dedicating lottery proceeds for financing revenue bonds to be issued by the economic development authority; creating a special revenue fund in the state treasury for the economic development authority; permitting the economic development authority to pledge funds as security for payment of revenue bonds; providing for issuance of revenue bonds; specifying use of bond proceeds to fund development of an educational center for arts and sciences; 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 economic development authority; allocating and limiting dollar amounts of lottery proceeds that may be used to provide debt service on such bonds; specifying uses of moneys in the West Virginia center for arts and sciences debt service fund; and providing for payment of certain lottery proceeds into the fund for use in bond financing.

Be it enacted by the Legislature of West Virginia:
That article one, chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section fifteen; that section eighteen, article twenty-two of said chapter be amended and reenacted; and that article fifteen, chapter thirty-one of said code be amended by adding thereto a new section, designated section six-b, all to read as follows:
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 1. DIVISION OF CULTURE AND HISTORY.
§29-1-15. Student enrichment transportation fund.

There is hereby created a special fund in the state treasury which shall be designated and known as the "student enrichment fund". The fund shall consist of all appropriations to the fund, all interest earned from the investment of the fund and any gifts, grants or contributions received by the fund.
The secretary of education and the arts, in consultation with the commissioner of culture and history, shall administer the fund pursuant to standards and criteria specifically designed to provide for the allocation and distribution of funds to transport school children in this state to the capitol city and its environs for the purpose of promoting their educational and cultural enrichment.
The standards and criteria established for the allocation of these funds shall be established by legislative rule, promulgated pursuant to the provisions of article three, chapter twenty-nine- a of this code.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18. State lottery fund; appropriations and deposits; not
part of general revenue; no transfer of state funds after initial appropriation; use and repayment of initial appropriation; allocation of fund for prizes, net profit and expenses; surplus; state lottery education fund; state lottery senior citizens fund; allocation and appropriation of net profits.

(a) There is hereby created a special revenue 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 the manner herein provided for in this section for the purposes stated herein in this section and shall not be treated by the auditor and treasurer as part of the general revenue of the state.
(b) No appropriation, loan or other transfer of state funds may be made to the commission or lottery fund after the initial appropriation.
(c) A minimum annual average of forty-five percent of the gross amount received from each lottery shall be allocated and disbursed as prizes.
(d) Not more than fifteen percent of the gross amount received from each lottery shall be allocated to and may be disbursed as necessary for fund operation and administration expenses.
(e) The excess of the aggregate of the gross amount received from all lotteries over the sum of the amounts allocated by subsections (c) and (d) of this section shall be allocated as net profit. 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 percentage allotted for operations and administration generates a surplus, the surplus will shall be allowed to accumulate to an amount not to exceed two hundred fifty thousand dollars. On a monthly basis the director shall report to the joint committee on government and finance of the Legislature any surplus in excess of two hundred fifty thousand dollars and remit to the state treasurer the entire amount of those surplus funds in excess of two hundred fifty thousand dollars which shall be allocated as net profit.
(f) After first satisfying the requirements for funds dedicated to the school building debt service fund in subsection (h) of this section to retire the ten-year bonds authorized to be issued pursuant to section eight, article nine-d, chapter eighteen of this code and then satisfying the requirements for funds dedicated to the West Virginia center for arts and sciences debt service fund in subsection (i) of this section to retire the twenty-five year bonds authorized to be issued pursuant to section six-b, article fifteen, chapter thirty-one of this code, the Legislature shall annually appropriate all of the remaining amounts allocated as net profits above in subsection (e) of this section, in such proportions as it deems considers beneficial to the citizens of this state, to: (1) The lottery education fund created in subsection (g) of this section; (2) the school construction fund as created in section six, article nine-d, chapter eighteen of this code; (3) the lottery senior citizens fund created in subsection (i)(j) of this section; and (4) the commerce division bureau of commerce created in article one, chapter five-b section one, article two, chapter five-f of this code, in accordance with subsection (j)(k) of this section: Provided, That no transfer to any account other than the school building debt service account and the West Virginia center for arts and sciences debt service account may be made in any period of time in which a default exists in respect to debt service on bonds issued by the school building authority or the economic development authority which are secured by lottery proceeds: Provided, however, That no additional transfer shall be made to any account other than the school building debt service account and the West Virginia center for arts and sciences debt service account when net profits for the preceding twelve months are not at least equal to one hundred fifty percent of debt service on bonds issued by the school building authority and the economic development authority which are secured by net profits.
(g) There is hereby created a special revenue fund in the state treasury which shall be designated and known as the "lottery education fund". The fund shall consist of the amounts allocated pursuant to subsection (f) of this section, which 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 in this subsection and shall not be treated by the auditor and treasurer as part of the general revenue of the state. Annually, the Legislature shall appropriate the revenues received or earned by the lottery education fund to the state system of public and higher education for 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 through the thirtieth day of June, two thousand five, the lottery director shall allocate to the school building debt service fund created pursuant to the provisions of section six, article nine-d, chapter eighteen of this code, as a first priority from the net profits of the lottery for the preceding month, an amount equal to one tenth of the projected annual principal, interest and coverage ratio requirements on any and all revenue bonds and refunding bonds issued, or to be issued, on or after the first day of April, one thousand nine hundred ninety-four, as certified to the lottery director in accordance with the provisions of said section six, article nine-d, chapter eighteen of this code: Provided, That in no event shall said the monthly amount exceed one million eight hundred thousand dollars: Provided, however, That in no event shall the total allocation of said the net profits to be paid into the school building debt service fund, as provided in this section, in any fiscal year exceed the lesser of the principal and interest requirements certified to the lottery director as aforesaid provided in section six, article nine-d, chapter eighteen of this code, or eighteen million dollars: Provided further, That in the event there are insufficient funds available in any month to transfer the amount required to be transferred pursuant to this subsection to the school debt service fund, the deficiency shall be added to the amount transferred in the next succeeding month in which revenues are available to transfer said the deficiency: And provided further, That a lien on the proceeds of the state lottery fund up to a maximum amount equal to the projected annual principal, interest and coverage ratio requirements, not to exceed twenty-seven million dollars annually, may be granted by the authority in favor of the bonds issued by the authority which are secured by the net lottery profits.
(i) Beginning on or before the twenty-eighth day of July, one thousand nine hundred ninety-six, and continuing on or before the twenty-eighth day of each succeeding month thereafter through the thirtieth day of June, two thousand twenty-one, the lottery director shall allocate to the West Virginia center for arts and sciences debt service fund created pursuant to the provisions of section six-b, article fifteen, chapter thirty-one of this code, as a second priority from the net profits of the lottery for the preceding month, an amount equal to one tenth of the projected annual principal, interest and coverage ratio requirements on any and all revenue bonds and refunding bonds issued, or to be issued, on or after the first day of April, one thousand nine hundred ninety-six, as certified to the lottery director in accordance with the provisions of section six-b, article fifteen, chapter thirty-one of this code: Provided, That in no event shall the monthly amount exceed two hundred fifty thousand dollars: Provided, however, That in no event shall the total allocation of the net profits to be paid into the West Virginia center for arts and sciences debt service fund, as provided in this section, in any fiscal year exceed the lesser of the principal and interest requirements certified to the lottery director as provided in section six-b, article fifteen, chapter thirty-one of this code, or two million five hundred thousand dollars: Provided further, That in the event there are insufficient funds available in any month to transfer the amount required to be transferred pursuant to this subsection to the West Virginia center for arts and sciences debt service fund, the deficiency shall be added to the amount transferred in the next succeeding month in which revenues are available to transfer the deficiency: And provided further, That a second-in-priority lien on the proceeds of the state lottery fund up to a maximum amount equal to the projected annual principal, interest and coverage ratio requirements, not to exceed three million seven hundred fifty thousand dollars annually, may be granted by the economic development authority in favor of the bonds issued by the economic development authority which are secured by the net lottery profits.
(i)(j) There is hereby created a special revenue fund in the state treasury which shall be designated and known as the "lottery senior citizens fund". The fund shall consist of the amounts allocated pursuant to subsection (f) of this section, which amounts shall be deposited into the lottery senior citizens fund by the state treasurer. The lottery senior citizens fund shall also consist of all interest earned from investment of the lottery senior citizens fund and any other appropriations, gifts, grants, contributions or moneys received by the lottery senior citizens fund from any source. The revenues received or earned by the lottery senior citizens fund shall be disbursed in the manner provided below in this subsection 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)(k) The commerce division bureau of commerce 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 those terms are defined in section thirteen-a four, article one five, chapter five-b twenty of this code, pursuant to the authority granted to it under said article five, chapter twenty of this code; (2) the payment, funding or refunding of the principal of, interest on or redemption premiums on any bonds, security interests or notes issued by the parks and recreation section of the commerce division division of natural resources under article one five, chapter five-b twenty of this code; or (3) the payment of any advertising and marketing expenses for the promotion and development of tourism or any tourist facility or attraction in this state.
CHAPTER 31. CORPORATIONS.

ARTICLE 15. WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY.
§31-15-6b. Special power of authority to construct and lease a West Virginia educational center for arts and sciences; limitations; economic development authority authorized to issue revenue bonds; fund created; use of funds to pay for development of a West Virginia educational center for arts and sciences.
(a) The Legislature finds and declares that in order to attract new business and industry to this state, to retain existing business and industry providing the citizens of this state with economic security, to advance the business prosperity and economic welfare of this state and to assure that adequate infrastructure and facilities are available for: (i) Hands-on arts and science training for the youth of West Virginia; (ii) programs using the performing arts as an educational tool; and (iii) state-of-the-art educational opportunities for all citizens of this state, it is necessary that public financial support be provided for constructing and equipping a centrally located West Virginia educational center for arts and sciences.
(b) The economic development authority may, by resolution, in accordance with the applicable provisions of this article, issue revenue bonds of the authority from time to time, to pay for a portion of the cost of constructing and equipping a West Virginia center for arts and sciences or to refund, at the discretion of the authority, the bonds: Provided, That the bond proceeds shall not exceed forty percent of the total project cost, including site acquisition, capital costs and endowments for operation and maintenance: Provided, however, That the principal amount of the bonds shall not exceed twenty-five million dollars: Provided further, That revenue bonds issued on or after the first day of January, one thousand nine hundred ninety-six, which are secured by lottery proceeds shall mature at such time or times not exceeding twenty-five years from their respective dates. The principal of, and the interest and redemption premium, if any, on, the bonds shall be payable solely from the special fund provided in subsection (c) of this section for the payment.
(c) There is hereby created in the state treasury a special revenue fund named the "West Virginia center for arts and sciences debt service fund" into which shall be deposited on and after the first day of July, one thousand nine hundred ninety-six, 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 section. The authority may further provide in the resolution and in the trust agreement for priorities on the revenues paid into the West Virginia center for arts and sciences 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 section. On or prior to the first day of May of each year, commencing the first day of May, one thousand nine hundred ninety-six, the authority shall certify to the state lottery director the principal and interest and coverage ratio requirements for the following fiscal year on any revenue bonds or refunding revenue bonds issued pursuant to this section, and for which moneys deposited in the West Virginia center for arts and sciences debt service fund have been pledged, or will be pledged, for repayment pursuant to this section.
After the authority has issued bonds authorized by this section, and after the requirements of all funds have been satisfied, including coverage and reserve funds established in connection with the bonds issued pursuant to this section, any balance remaining in the West Virginia center for arts and sciences debt service fund may be used for the redemption of any of the outstanding bonds issued under this section which, by their terms, are then redeemable or for the purchase of the outstanding bonds at the market price, but not to exceed the price, if any, at which redeemable, and all bonds redeemed or purchased shall be immediately canceled and shall not again be issued.
(d) The authority is hereby empowered to: (i) Acquire by purchase or lease real property to be used as a site for a West Virginia educational center for arts and sciences; (ii) use the proceeds of the bonds authorized by this section to pay a portion of the costs of constructing and equipping a West Virginia center for arts and sciences located on that site; and (iii) enter into a long-term lease agreement with a nonprofit corporation organized under the laws of this state for operation and maintenance of the center: Provided, That such nonprofit corporation shall, as consideration for the long-term lease agreement, complete the construction and equipping of the center and demonstrate to the satisfaction of the authority its financial ability to operate and maintain the center during the term of the lease agreement.


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