ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 449
(Senators Tomblin, Mr. President, and Boley,
By Request of the Executive, original sponsors)
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[Passed March 9, 1996; in effect from passage.]
____________
AN ACT to amend and reenact sections four, five, eight and ten,
article six, chapter five of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; to further
amend said article by adding thereto a new section,
designated section eleven-a; to amend article six, chapter
twelve of said code by adding thereto a new section,
designated section nineteen; and to amend and reenact
section eighteen, article twenty-two, chapter twenty-nine of
said code, all relating to authorizing the state building
commission to borrow funds; clarifying the deposit and
disbursement of funds by the commission; authorizing the
issuance of revenue bonds; setting forth the terms and conditions of the issuance of bonds; authorizing the
acquisition of specified property; clarifying the trust
provisions for existing bondholders; requiring the
expenditure of bond proceeds for capital expenditures at
state institutions of higher education; establishing a
committee to certify arts and sciences projects by a date
certain; requiring notice and public hearings to be
conducted by the committee; authorizing the committee to
certify whether a portion of bond proceeds will be expended
for constructing and equipping an arts and sciences center
in West Virginia; setting forth the conditions upon which
proceeds may be used for an arts and sciences center;
requiring the committee to determine whether projects will
be funded by a date certain; authorizing the balance of bond
proceeds to be expended for capital projects at the state
parks, the capitol complex or other tourism sites in this
state; establishing a committee to certify capital
improvement projects by a date certain; requiring notice and
public hearings to be conducted by the committee; creating
a special account in the state treasury for debt service; authorizing the state board of investments to loan money to
the state building commission for acquisition of specified
property, to refinance projects and for construction and
improvements of regional jails and correctional facilities;
setting forth an interest rate for the loans; establishing
method of repayment of loans; authorizing board of
investments to fix annual amount of loan; setting forth
priorities for loans; encouraging liquidity in the
consolidated fund; dedicating lottery proceeds for the
repayment of bonds issued by the building commission;
establishing maximum amount of lottery proceeds to be
dedicated for bond repayment; and making this dedication a
second-in-priority lien on the proceeds of the state lottery
fund.
Be it enacted by the Legislature of West Virginia:
That sections four, five, eight and ten, article six,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted; that
said article, be further amended by adding thereto a new section,
designated section eleven-a; that article six, chapter twelve of
said code be amended by adding thereto a new section, designated section nineteen; and that section eighteen, article twenty-two,
chapter twenty-nine of said code be amended and reenacted, all to
read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF PUBLIC WORKS;
MISCELLANEOUS AGENCIES, COMMISSIONS, OFFICES, PROGRAMS, ETC.
ARTICLE 6. STATE BUILDING COMMISSION.
§5-6-4. Powers of commission.
The commission has the power:
(1) To sue and be sued, plead and be impleaded;
(2) To have a seal and alter the same at pleasure;
(3) To contract to acquire and to acquire, in the name of
the commission or of the state, by purchase, lease, lease-
purchase or otherwise, real property or rights or easements
necessary or convenient for its corporate purposes and to
exercise the power of eminent domain to accomplish those
purposes;
(4) To acquire, hold and dispose of personal property for
its corporate purposes;
(5) To make bylaws for the management and regulation of its
affairs;
(6) With the consent of the attorney general of the state of
West Virginia, to use the facilities of his or her office,
assistants and employees in all legal matters relating to or
pertaining to the commission;
(7) To appoint officers, agents and employees, and fix their
compensation;
(8) To make contracts, and to execute all instruments
necessary or convenient to effectuate the intent of, and to
exercise the powers granted to it by this article;
(9) To renegotiate all contracts entered into by it
whenever, due to a change in situation, it appears to the
commission that its interests will be best served;
(10) To construct a building or buildings on real property,
which it may acquire, or which may be owned by the state of West
Virginia, in the city of Charleston, as convenient as may be to
the capitol building, together with incidental approaches,
structures and facilities, subject to the consent and approval of
the city of Charleston in any case as may be necessary; and, in
addition, to acquire or construct a warehouse, including office
space in the warehouse, in Kanawha County for the West Virginia alcohol beverage control commissioner, and equip and furnish the
office space; and to acquire or construct, through lease,
purchase, lease-purchase or bond financing, hospitals or other
facilities, buildings, or additions or renovations to buildings
as may be necessary for the safety and care of patients, inmates
and guests at facilities under the jurisdiction of and
supervision of the division of health and at institutions under
the jurisdiction of the division of corrections or the regional
jail and correctional facilities authority; and to formulate and
program plans for the orderly and timely capital improvement of
all of the hospitals and institutions and the state capitol
buildings; and to construct a building or buildings in Kanawha
County to be used as a general headquarters by the division of
public safety to accommodate that division's executive staff,
clerical offices, technical services, supply facilities and
dormitory accommodations; and to develop, improve and expand
state parks and recreational facilities to be operated by the
division of natural resources; and to establish one or more
systems or complexes of buildings and projects under control of
the commission; and, subject to prior agreements with holders of bonds previously issued, to change the systems, complexes of
buildings and projects from time to time, in order to facilitate
the issuance and sale of bonds of different series on a parity
with each other or having such priorities between series as the
commission may determine; and to acquire by purchase, eminent
domain or otherwise all real property or interests in the real
property necessary or convenient to accomplish the purposes of
this subdivision. The rights and powers set forth in this
subdivision shall not be construed as in derogation of any rights
and powers now vested in the West Virginia alcohol beverage
control commissioner, the department of health and human
resources, the division of corrections or the division of natural
resources;
(11) To maintain, construct and operate a project authorized
under this article;
(12) To charge rentals for the use of all or any part of a
project or buildings at any time financed, constructed, acquired
or improved in whole or in part with the proceeds of sale of
bonds issued pursuant to this article, subject to and in
accordance with such agreements with bondholders as may be made as provided in this article:
Provided, That on and after the
effective date of the amendments to this section, to charge
rentals for the use of all or any part of a project or buildings
at any time financed, constructed, acquired, maintained or
improved in whole or in part with the proceeds of sale of bonds
issued pursuant to this article, subject to and in accordance
with such agreements with bondholders as may be made as in this
section provided, or with any funds available to the state
building commission, including, but not limited to, all buildings
and property owned by the state of West Virginia or by the state
building commission, but no rentals shall be charged to the
governor, attorney general, secretary of state, state auditor,
state treasurer, the Legislature and the members of the
Legislature, the supreme court of appeals, nor for their offices,
agencies, official functions and duties;
(13) To issue negotiable bonds and to provide for the rights
of the holders of the negotiable bonds;
(14) To accept and expend any gift, grant or contribution of
money to, or for the benefit of, the commission, from the state
of West Virginia or any other source for any or all of the purposes specified in this article or for any one or more of such
purposes as may be specified in connection with the gift, grant
or contribution;
(15) To enter on any lands and premises for the purpose of
making surveys, soundings and examinations;
(16) To invest in United States government obligations, on
a short-term basis, any surplus funds which the commission may
have on hand pending the completion of any project or projects;
(17) To issue revenue bonds in accordance with the
applicable provisions of this article for the purposes set forth
in section eleven-a of this article; and
(18) To do all things necessary or convenient to carry out
the powers given in this article.
§5-6-5. Deposit and disbursement of funds of commission;
security
for
deposits;
audits.
Except as provided in sections five-a and eleven-a of this
article, all moneys of the commission from whatever source
derived shall be paid to the treasurer of the state of West Virginia who shall not commingle the moneys, but shall deposit
them to a special revenue fund to be known as the "state building
commission fund". The moneys in the account shall be impressed
with and subject to the lien or liens on the moneys in favor of
the bondholders provided in the proceedings for issuance of bonds
pursuant to this article. The moneys in the account shall be
paid out on check of the treasurer on requisition of the chairman
of the commission, or of such other person as the commission may
authorize to make the requisition. All deposits of the moneys
shall, if required by the treasurer or the commission, be secured
by obligations of the United States, of the state of West
Virginia, or of the commission, of a market value equal at all
times to the amount of the deposit, and all banking institutions
are authorized to give such security for the deposits. The
legislative auditor and his or her legally authorized
representatives are hereby authorized and empowered from time to
time to examine the accounts and books of the commission,
including its receipts, disbursements, contracts, leases, sinking
funds, investments and any other matters relating to its
financial standing.
§5-6-8. Commission empowered to issue state building revenue
bonds after legislative authorization; form and
requirements for bonds; procedure for issuance;
temporary bonds; funds, grants and gifts.
(a) The commission is hereby empowered to raise the cost of
a project, as defined in this article, by the issuance of state
building revenue bonds of the state, the principal of and
interest on which shall be payable solely from the special
revenue fund provided in section five of this article for the
payment. Subject to the proceedings pursuant to which any bonds
outstanding were authorized and issued pursuant to this article,
the commission shall pledge the moneys in the special revenue
fund, except that part of the proceeds of sale of any bonds to be
used to pay the cost of a project and for the payment of the
principal of and interest on bonds issued pursuant to this
article. The pledge shall apply equally and ratably to separate
series of bonds or upon the priorities as the commission shall
determine. The bonds shall be authorized by resolution of the
commission. The resolution shall recite an estimate by the
commission of the cost, and shall provide for the issuance of
bonds in an amount sufficient, when sold as provided in this section, to produce the cost, less the amount of any funds, grant
or grants, gift or gifts, contribution or contributions received,
or in the opinion of the commission expected to be received, from
the United States of America or from any other source. The
acceptance by the commission of any and all funds, grants, gifts
and contributions, whether in money or in land, labor or
materials, is hereby expressly authorized. All bonds shall have
and are hereby declared to have all the qualities of negotiable
instruments. The bonds shall bear interest at not more than
twelve percent per annum, payable semiannually, and shall mature
in not more than forty years from their date or dates, and may be
made redeemable at the option of the state, to be exercised by
the commission, at the price and under the terms and conditions,
all as the commission may fix prior to the issuance of the bonds.
The commission shall determine the form of the bonds, including
coupons, if any, to be attached to the bonds to evidence the
right of interest payments. The bonds shall be signed by the
chairman and secretary of the commission, under the great seal of
the state, attested by the secretary of state, and the coupons,
if any, attached to the bonds shall bear the facsimile signature of the chairman of the commission. In case any of the officers
whose signatures appear on the bonds or coupons issued as
authorized by this section shall cease to be officers before the
delivery of the bonds, the signatures are nevertheless valid and
sufficient for all purposes the same as if they had remained in
office until the delivery. The commission shall fix the
denominations of the bonds, the principal and interest of which
shall be payable at the office of the treasurer of the state of
West Virginia, at the capitol of the state, or, at the option of
the holder, at some bank or trust company within or without the
state of West Virginia to be named in the bonds, in such medium
as may be determined by the commission. The bonds and interest
on the bonds are exempt from taxation by the state of West
Virginia, or any county or municipality in the state. The
commission may provide for the registration of the bonds in the
name of the owners as to principal alone, and as to both
principal and interest under the terms and conditions as the
commission may determine, and shall sell the bonds in the manner
as it may determine to be for the best interest of the state,
taking into consideration the financial responsibility of the purchaser, and the terms and conditions of the purchase, and
especially the availability of the proceeds of the bonds when
required for payment of the cost of the project. The sale shall
be made at a price not lower than a price which, computed upon
standard tables of bond values, will show a net return of not
more than thirteen percent per annum to the purchaser upon the
amount paid for the bonds. The proceeds of the bonds shall be
used solely for the payment of the cost of the project for which
bonds were issued, and shall be deposited and checked out as
provided by section five of this article, and under further
restrictions, if any, as the commission may provide. If the
proceeds of bonds issued for a project or a specific group of
projects exceeds the cost of the project or projects, the surplus
shall be paid into the fund provided for in section five of this
article for payment of the principal and interest of the bonds.
The fund may be used for the purchase of any of the outstanding
bonds payable from the fund at the market price, but at not
exceeding the price, if any, at which the bonds are in the same
year redeemable, and all bonds redeemed or purchased shall be
canceled immediately, and shall not again be issued. Prior to the preparation of definitive bonds, the commission may, under
like restrictions, issue temporary bonds with or without coupons,
exchangeable for definitive bonds upon the issuance of the
latter. Notwithstanding the provisions of sections nine and ten,
article six, chapter twelve of this code, revenue bonds issued
under the authority granted in this section are eligible as
investments for the workers' compensation fund, teachers
retirement fund, division of public safety, death, disability and
retirement fund, West Virginia public employees retirement system
and as security for the deposit of all public funds. The revenue
bonds may be issued without any other proceedings or the
happening of any other conditions or things other than those
proceedings, conditions and things which are specified and
required by this article, or by the constitution of the state.
For all projects authorized under the provisions of this article,
other than projects to be leased by the commission to the
regional jail and correctional facilities authority or projects
authorized pursuant to section eleven-a of this article, the
aggregate amount of all issues of bonds outstanding at one time
shall not exceed sixty-two million five hundred thousand dollars, including the renegotiation, reissuance or refinancing of any
bonds, and no project in connection with which bonds are to be
issued shall be initiated by the commission unless and until the
Legislature, through enactment of general law, approves the
purpose, the amount of bonds to be issued and the total cost for
the project, construction or acquisition.
For projects which are to be leased by the commission to the
regional jail and correctional facilities authority, legislative
approval pursuant to the provisions of this section shall not be
required if the projects have otherwise been approved by the
Legislature in accordance with the provisions of subsection (m),
section five, article twenty, chapter thirty-one of this code,
and the limitations on the amount of revenue bonds which may be
issued by the commission and the project costs shall be governed
by the terms of any concurrent resolution adopted pursuant to
that subsection.
(b) Notwithstanding anything in this article to the
contrary, the commission is authorized to issue bonds, or
otherwise finance or refinance the following projects, including
the costs of issuance and sale of the bonds or financing, all necessary financial and legal expenses and creation of debt
service reserve funds, in an amount not to exceed twenty-one
million dollars:
(1) Any or all of the state office buildings and adjoining
real property being lease-purchased in Beckley, Charleston,
Clarksburg, Fairmont, Huntington and Parkersburg;
(2) A facility to be obtained or constructed by the
commission and leased to the division of motor vehicles; and
(3) Property and buildings needed for state spending units
in an amount not to exceed three million dollars.
(c) Notwithstanding any other provision of this section, the
commission is authorized to issue bonds for the purposes set
forth in section eleven-a of this article in the aggregate amount
of one hundred million dollars, including the renegotiation,
reissuance or refinancing of any bonds issued for that purpose.
If the proceeds of bonds issued under this subsection exceeds the
cost of the project or projects, the surplus shall be paid into
the education, arts, sciences and tourism fund established in
section eleven-a of this article.
(d) The commission shall acquire the property being lease-purchased in the city of Charleston, located at 601 Morris
street, through a loan from the consolidated fund. The loan
shall be under the terms and conditions set forth in section
nineteen, article six, chapter twelve of this code.
§5-6-10. Trust existing in favor of existing bondholders.
The properties and interests in properties, real, personal
and mixed, tangible and intangible, standing or held in the name
of or for and in behalf of, or for the benefit of, the
commission, or the state of West Virginia to the extent that the
properties and interests in properties were acquired or improved
by the expenditure of the proceeds of bonds previously issued by
the commission, and the moneys, deposits, securities and choses
in action and other rights held in the name of or for and in
behalf of, or for the benefit of, the commission, other than
moneys, deposits, securities, choses in action and other rights,
or which are investments of: (1) Proceeds of bonds previously
issued by the commission held for expenditure for completion of
now existing projects of the commission; or (2) revenues of the
commission from existing projects of the commission which, after
provision for operation and maintenance expenses and coverage
requirements not otherwise provided for, are in excess of sums required to pay the principal of and interest on the bonds of the
commission previously issued, as and when due and payable; or (3)
proceeds of bonds of the commission issued after the effective
date of this section; or (4) revenues pledged for the repayment
of bonds issued pursuant to section eleven-a of this article; or
(5) revenues of the commission from projects acquired after the
effective date of this section or constructed by the commission,
are declared to be subject to and shall be held by the commission
in trust for the satisfaction of the obligations evidenced by the
bonds previously issued by the commission and the interest
coupons on the bonds:
Provided, That nothing in this article
shall be taken to validate or to attempt to validate rights under
any existing lease or other agreement entered into under the
former provisions of this article between the commission and the
state of West Virginia or any officer, department or agency of
this state to the extent that the lease or agreement provides for
payments from general tax revenues of the state. Until the
satisfaction in full of the obligations evidenced by bonds
previously issued by the commission, the commission shall hold,
manage and operate the trust properties and interests in properties, moneys, deposits, securities and choses in action and
other rights, separate from all other properties and interests in
properties, moneys, deposits, securities and choses in action and
other rights that may after the effective date of this section be
held and owned by the commission. Upon the satisfaction of all
of the obligations of the commission, all of the trust properties
and interests in properties, moneys, deposits, securities and
choses in action and other rights shall become and be free and
clear of the trust.
§5-6-11a. Special power of commission to transfer or expend
bond proceeds for capital improvements at
institutions of higher education, state parks and
the capitol complex and to construct and lease a
center for arts and sciences of West Virginia;
limitations; state building commission authorized
to issue revenue bonds; fund created; use of funds
to pay for development of education, arts, sciences
and tourism projects.
(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 and to advance the business prosperity and economic welfare of this state it is necessary to
promote adequate higher education, arts, sciences and tourism
facilities, including infrastructure, for: (1) State-of-the-art
educational opportunities for all citizens of this state; (2)
tourism enhancements at state parks, the capitol complex or other
tourism sites throughout the state; (3) hands-on arts and
sciences training for the youth of West Virginia; and (4)
programs using the performing arts as an educational tool.
Therefore, in order to promote education, arts, sciences and
tourism, the Legislature finds that public financial support
should be provided for constructing, equipping, improving and
maintaining capital improvement projects which promote education,
arts, sciences and tourism in this state.
(b) The state building commission shall, by resolution, in
accordance with the provisions of this article, issue revenue
bonds of the commission from time to time, to pay for a portion
of the cost of constructing, equipping, improving or maintaining
capital improvement projects under this section or to refund the
bonds, at the discretion of the authority. The principal amount
of the bonds issued under this section shall not exceed, in the aggregate, one hundred million dollars. Any 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
a 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 this section for the payment.
(c) There is hereby created in the state treasury a special
revenue fund named the "education, arts, sciences and tourism
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 commission may
further provide in the resolution and in the trust agreement for
priorities on the revenues paid into the education, arts,
sciences and tourism 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. The
bonds issued pursuant to this section shall be separate from all
other bonds which may be or have been issued from time to time
under the provisions of this article. The education, arts,
sciences and tourism debt service fund shall be pledged solely
for the repayment of bonds issued pursuant to 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
commission 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 education, arts, sciences and tourism debt
service fund have been pledged, or will be pledged, for repayment
pursuant to this section.
After the commission 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 education, arts, sciences and tourism 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 commission shall expend twenty-five million dollars
of the bond proceeds for certified capital improvement projects
at state institutions of higher education. For the purposes of
certifying the projects which will receive funds from the bond
proceeds, a committee shall be established and comprised of the
governor, or his or her designee, the secretary of the department
of administration, the secretary of the department of education
and the arts, the chancellor of the university of West Virginia
board of trustees and the chancellor of the board of directors of
the state college system. The committee shall meet as often as
necessary and take recommendations from any source whatever
regarding the capital improvement projects at state institutions
of higher education. The committee shall meet within forty-five
days of the effective date of this section. Prior to making its recommendations, the committee shall conduct at least two public
hearings, one of which must be held outside of Kanawha County.
Notice of the time, place, date and purpose of the hearing shall
be published in at least one newspaper in each of the three
congressional districts at least fourteen days prior to the date
of the public hearing. On or before the fifteenth day of
September, one thousand nine hundred ninety-six, the committee
shall certify to the commission a list of those capital
improvement projects at state institutions of higher education
which will receive funds from the proceeds of bonds issued
pursuant to this section. Once certified, the list may not
thereafter be altered or amended other than by legislative
enactment.
(e) The commission shall expend up to twenty-six million
dollars from the proceeds of the bonds authorized by this section
to pay a portion of the costs of projects certified under this
subsection for development, maintenance or promotion of arts and
sciences or constructing and equipping a center for arts and
sciences of West Virginia located on a site acquired for that
purpose. Any proceeds expended to pay a portion of project costs to construct and equip a center for arts and sciences of West
Virginia shall not exceed forty percent of the total cost of the
project and permanent endowments for operation and maintenance,
and bond proceeds shall not be expended until sixty percent of
the total cost has been committed from sources other than bond
proceeds. For the purposes of certifying the projects which will
receive funds from the bond proceeds under this subsection, a
committee shall be established and comprised of the governor, or
his or her designee, the secretary of the department of
administration, the director of the division of natural
resources, the director of the West Virginia development office
and a representative of the capitol building commission, other
than the secretary of the department of administration, who shall
be selected by the capitol building commission. The capitol
building commission shall select its representative within thirty
days of the effective date of this section. The committee shall
meet as often as necessary and take recommendations from any
source whatever regarding which projects should be certified.
The committee shall meet within forty-five days of the effective
date of this section. Prior to making its determination, the committee shall conduct one public hearing on the projects to be
certified under this subsection. Notice of the time, place, date
and purpose of the hearing shall be published in at least one
newspaper in each of the three congressional districts at least
fourteen days prior to the date of the public hearing. The
committee shall make its determination as to whether bond
proceeds will be expended for the purposes set forth in this
subsection and the amount to be expended for each project, on or
before the fifteenth day of June, one thousand nine hundred
ninety-six. Thereafter, the decision may not be altered or
amended other than by legislative enactment. The commission is
authorized to acquire by purchase or lease real property to be
used as the site for a center for arts and sciences of West
Virginia; and notwithstanding the provisions of section seven of
this article, 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. The nonprofit
corporation shall, as consideration for any long-term lease
agreement, complete the construction and equipping of the center
and demonstrate to the satisfaction of the commission its financial ability to operate and maintain the center during the
term of the lease agreement. The nonprofit corporation shall
have at least nine members on its board of directors which are
appointed by the governor with the advice and consent of the
Senate. Of the nine appointed members, three shall be selected
from each congressional district:
Provided, That none of the
appointed members shall be a resident of Kanawha County. The
members appointed by the governor with the advice and consent of
the Senate shall serve on the board for three-year staggered
terms. Of the members first appointed by the governor, one from
each congressional district will serve a three-year term, one
from each congressional district will serve a two-year term and
one from each congressional district shall serve a one-year term.
(f) The commission shall expend the balance of the bond
proceeds for certified projects at state parks, the capitol
complex or other tourism sites. The committee established in
subsection (e) of this section shall certify to the commission on
or before the fifteenth day of September, one thousand nine
hundred ninety-six, a list of those capital improvement projects
at state parks, the capitol complex or other tourism sites which will receive funds from the proceeds of bonds issued pursuant to
this section. The committee shall meet as often as necessary and
take recommendations from any source whatever regarding the
capital improvement projects at state parks, the capitol complex
or other tourism sites in this state. The committee shall meet
within forty-five days of the effective date of this section.
Prior to making its recommendations, the committee shall conduct
at least two public hearings on the projects to be certified
under this subsection, one of which must be held outside of
Kanawha County. Notice of the time, place, date and purpose of
the hearing shall be published in at least one newspaper in each
of the three congressional districts at least fourteen days prior
to the date of the public hearing. Once certified, the list may
not thereafter be altered or amended other than by legislative
enactment.
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 6. WEST VIRGINIA STATE BOARD OF INVESTMENTS.
§12-6-19. Authorization for loans by the state board of
investments.
(a) The state board of investments, upon request of the
state building commission, shall transfer moneys as a loan to the state building commission in an amount not to exceed in the
aggregate twenty-one million dollars for the purposes of
financing or refinancing the projects specified in subsections
(b) and (d), section eight, article six, chapter five of this
code. The money borrowed shall bear interest during the term of
the loan at a fixed rate not to exceed the interest rate on
treasury notes, bills or bonds of the same term as the term of
the loan the week of closing on the loan as reported by the
treasury of the United States. Loans made under this subsection
shall be repaid in regular monthly or semiannual payments and
shall be paid in full not later than twenty-five years from the
date the loans are made with terms and conditions mutually agreed
upon by the state building commission and the state board of
investments.
(b) The state board of investments shall upon request of
the state building commission transfer moneys as a loan to the
state building commission in an amount not to exceed in the
aggregate eighty million dollars for the purposes of financing
construction of regional jails, correctional facilities, or
building extensions or improvements to regional jails and correctional facilities. Prior to the expenditure of any loan
proceeds, the regional jail and correctional facility authority
shall certify a list of projects to the state building commission
and the joint committee on government and finance that are to be
funded from loan proceeds. This certified list cannot thereafter
be altered or amended other than by legislative enactment. Upon
receipt of the certified list of projects, the state building
commission shall transfer the loan proceeds to the regional jail
and correctional facility authority. The money borrowed shall
bear interest during the term of the loan at a fixed rate not to
exceed the interest rate on treasury notes, bills or bonds of the
same term as the term of the loan the week of closing on the loan
as reported by the treasury of the United States.
(c) Loans made under this section for the projects
specified in subsection (b) of this section and in subsection
(d), section eight, article six, chapter five of this code, shall
be repaid in annual payments of not less than twelve million
dollars per year by appropriation of the Legislature to the board
of investments. The amount transferred for loans under
subsection (a) or (b) of this section shall not exceed that amount which the board of investments determines is reasonable
given the cash flow needs of the consolidated fund. The board
shall make transfers for loans first for the project specified in
subsection (d), section eight, article six, chapter five of this
code, second for the projects specified in subsection (b) of this
section and third for projects specified in subsection (b),
section eight, article six, chapter five of this code, which are
in imminent danger of default in payment. The board shall take
the steps necessary to increase the liquidity of the consolidated
fund over a period of the next five years to allow for the loans
provided in this section without increasing the risk of loss in
the consolidated fund.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
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 continued 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 provided in this section for the purposes stated 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. In the event that the percentage allotted for
operations and administration generates a surplus, the surplus
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 education, arts, sciences and tourism debt
service fund in subsection (i) of this section to retire the
bonds authorized to be issued pursuant to section eleven-a, article six, chapter five of this code, the Legislature shall
annually appropriate all of the remaining amounts allocated as
net profits in subsection (e) of this section, in such
proportions as it 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 created in
section six, article nine-d, chapter eighteen of this code; (3)
the lottery senior citizens fund created in subsection (j) of
this section; and (4) the division of natural resources created
in section four, article five, chapter twenty of this code and
the West Virginia development office as created in section one,
article two, chapter five-b of this code, in accordance with
subsection (k) of this section. No transfer to any account other
than the school building debt service account and the education,
arts, sciences and tourism debt service fund 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 and the
state building commission which are secured by lottery proceeds.
No additional transfer shall be made to any account other than
the school building debt service account and the education, arts, sciences and tourism debt service fund 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 state building commission which are
secured by net profits.
(g) There is hereby continued 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 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 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) On or before the twenty-eighth day of each month
through the twentieth 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
section six, article nine-d, chapter eighteen of this code. In no
event shall the monthly amount allocated exceed one million eight
hundred thousand dollars, nor shall the total allocation of 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 or eighteen million dollars.
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 the deficiency. 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 school building authority in
favor of the bonds it issues 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 twenty-eighth day of June, two thousand twenty-one, the
lottery director shall allocate to the education, arts, sciences
and tourism debt service fund created pursuant to the provisions
of section eleven-a, article six, chapter five 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 that section. In no event
shall the monthly amount allocated exceed one million dollars nor
shall the total allocation paid into the education, arts,
sciences and tourism 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 or
ten million dollars. In the event there are insufficient funds
available in any month to transfer the amount required pursuant
to this subsection to the education, arts, sciences and tourism
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. 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 fifteen million dollars
annually, may be granted by the state building commission in favor of the bonds it issues which are secured by the net lottery
profits.
(j) There is hereby continued 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 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.
(k) The division of natural resources and the West Virginia development office, as appropriated by the Legislature, 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 these terms are defined in
section four, article five, chapter twenty of this code, pursuant
to the authority granted to it under 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 division of natural resources under article five,
chapter 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.
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