ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 533
(By Senators Tomblin, Mr. President, and Buckalew,
By Request of the Executive)
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[Passed March 14, 1998; to take effect July 1, 1998.]
_________
AN ACT to amend and reenact section thirty, article fifteen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to amend and reenact
section ten, article nine-a, chapter eighteen of said code;
to amend and reenact section fifteen, article nine-d of said
chapter; and to amend and reenact section eighteen, article
twenty-two, chapter twenty-nine of said code, all relating
to a funding plan for continuing public school construction;
deleting outdated language; continuing monthly state sales
tax payments into the school major improvement fund by
eliminating the termination date for such payments;
continuing monthly state sales tax payments into the school
construction fund by eliminating the termination date for
such payments; providing for the payment of the annual
difference between the allocation made in the one thousand nine hundred ninety-seven fiscal year and the amount of
funds required for debt service on school improvement bonds
under the better school building amendment for any
succeeding current year to be deposited into the school
construction fund; authorizing use of certain moneys for
study and implementation of a charter school pilot program;
providing that, upon retirement of school construction bonds
secured through allocations from the school building capital
improvements fund, certain moneys allocated for that purpose
are to be deposited into the school construction fund;
school building authority generally; distribution of funds;
submission of construction designs for school building
authority approval; and providing that, upon the retirement
of the school improvement bonds secured by profits from the
lottery and deposited in the school debt service fund, an
annual amount of eighteen million dollars of such funds
shall be deposited into the school construction fund.
Be it enacted by the Legislature of West Virginia:
That section thirty, article fifteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that section ten, article
nine-a, chapter eighteen of said code be amended and reenacted;
that section fifteen, article nine-d of said chapter be amended
and reenacted; and that section eighteen, article twenty-two, chapter twenty-nine of said code be amended and reenacted, all to
read as follows:
CHAPTER 11. TAXATION.
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-30. Proceeds of tax; appropriation of certain revenues.
(a) The proceeds of the tax imposed by this article shall be
deposited in the general revenue fund of the state except as
otherwise expressly provided in this article.
(b)
School major improvement fund. --
After the payment or commitment of the proceeds or
collections of this tax for the purposes set forth in sections
sixteen and eighteen of this article, on the first day of each
month, there shall be dedicated monthly from the collections of
this tax, the amount of four hundred sixteen thousand six hundred
sixty-seven dollars and the amount dedicated shall be deposited
on a monthly basis into the school major improvement fund created
pursuant to section six, article nine-d, chapter eighteen of this
code.
(c)
School construction fund. --
After the payment or commitment of the proceeds or
collections of this tax for the purposes set forth in sections
sixteen and eighteen of this article:
(1) On the first day of each month, there shall be dedicated
monthly from the collections of this tax, the amount of one million four hundred sixteen thousand six hundred sixty-seven
dollars and the amount dedicated shall be deposited into the
school construction fund created pursuant to section six, article
nine-d, chapter eighteen of this code.
(2) Effective the first day of July, one thousand nine
hundred ninety-eight, there shall be dedicated from the
collections of this tax, an amount equal to any annual difference
that may occur between the debt service payment for the one
thousand nine hundred ninety-seven fiscal year for school
improvement bonds issued under the better school building
amendment under the provisions of article nine-c, chapter
eighteen of this code and the amount of funds required for debt
service on these school improvement bonds in any current fiscal
year thereafter. This annual difference shall be prorated
monthly, added to the monthly deposit in subdivision (1) of this
subsection and deposited into the school construction fund
created pursuant to section six, article nine-d, chapter eighteen
of this code.
CHAPTER 18. EDUCATION.
ARTICLE 9A. PUBLIC SCHOOL SUPPORT.
§18-9A-10. Foundation allowance to improve instructional
programs.
(a) For each school year beginning on the first day of July,
one thousand nine hundred ninety-eight, and thereafter, the sum of the allocations shall be the amount appropriated by the
Legislature for those purposes:
(1) One hundred fifty thousand dollars shall be allocated to
each county;
(2) Distribution to the counties of the remainder of these
funds shall be made proportional to the average of each county's
average daily attendance for the preceding year and the county's
second month net enrollment. Moneys allocated by provision of
this section shall be used to improve instructional programs
according to a plan for instructional improvement which the
affected county board shall file with the state board by the
first day of August of each year, to be approved by the state
board by the first day of September of that year if the plan
substantially complies with standards to be adopted by the state
board:
Provided, That notwithstanding any other provision of
this code to the contrary, moneys allocated by provision of this
section may also be used in the implementation and maintenance of
the uniform integrated regional computer information system.
(3) Up to twenty-five percent of this allocation may be used
to employ professional educators and service personnel in
counties after all applicable provisions of sections four and
five of this article have been fully utilized.
Prior to the use of any funds from this section for
personnel costs, the county board must receive authorization from the state superintendent of schools. The state superintendent
shall require the district board to demonstrate: (1) The need
for the allocation; (2) efficiency and fiscal responsibility in
staffing; and (3) the sharing of services with adjoining counties
and the regional educational service agency for that county in
the use of the total local district board budget. District
boards shall make application for available funds for the next
fiscal year by the first day of May of each year. On or before
the first day of June, the state superintendent shall review all
applications and notify applying district boards of the
distribution of the allocation. The funds shall be distributed
during the fiscal year as appropriate. The state superintendent
shall require the county board to demonstrate the need for an
allocation for personnel based upon the county's inability to
meet the requirements of state law or state board policy:
Provided, That the funds available for personnel under this
section may not be used to increase the total number of
professional noninstructional personnel in the central office
beyond four. The instructional improvement plan shall be made
available for distribution to the public at the office of each
affected county board.
(b) An amount not less than the amount required to meet debt
service requirements on any revenue bonds issued prior to the
first day of January, one thousand nine hundred ninety-four, and the debt service requirements on any revenue bonds issued for the
purpose of refunding revenue bonds issued prior to the first day
of January, one thousand nine hundred ninety-four, shall be paid
into the school building capital improvements fund created by
section six, article nine-d of this chapter, and shall be used
solely for the purposes of that article. The school building
capital improvements fund shall not be utilized to meet the debt
services requirement on any revenue bonds or revenue refunding
bonds for which moneys contained within the school building debt
service fund have been pledged for repayment pursuant to that
section.
When the school improvement bonds secured by funds from the
school building capital improvements fund mature, the state board
of education shall annually deposit an amount equal to twenty- four million dollars from the funds allocated in this section
into the school construction fund created pursuant to the
provisions of section six, article nine-d, chapter eighteen of
this code to continue funding school facility construction and
improvements.
(c) Any project funded by the school building authority
shall be in accordance with a comprehensive educational facility
plan which must be approved by the state board and the school
building authority.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§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 and to
administer all federal funds provided for the construction and
major improvement 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 facility's
school major improvement 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 sum of
moneys that are determined by the authority to be available for
distribution during the then current fiscal year from: (1)
Moneys 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 moneys in the school building
debt service fund are pledged as security; (3) moneys paid into
the school construction fund pursuant to section six of this
article; and (4) any other moneys received by the authority,
except moneys paid into the school major improvement fund
pursuant to section six of this article, 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. In addition, upon application by the state
board or the administrative council of an area vocational
educational center established pursuant to article two-b of this
chapter, the authority may allocate and expend under this section
moneys for school major improvement projects proposed by the
state board or an administrative council for school facilities
under the direct supervision of the state board or an
administrative council, respectively:
Provided, That the
authority may not expend any moneys for a school major
improvement project proposed by the state board or the
administrative council of an area vocational educational center
unless the state board or an administrative council has submitted
a ten-year school major improvement plan, to be updated annually,
pursuant to section sixteen of this article:
Provided, however,
That the authority shall, before allocating any moneys to the
state board or the administrative council of an area vocational
educational center for a school improvement project, consider all
other funding sources available for the project.
(c) An amount that is no more than two percent of the moneys
that are determined by the authority to be available for
distribution during the current fiscal year from: (1) Moneys 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 moneys in the school building debt
service fund are pledged as security; (3) moneys paid into the
school construction fund pursuant to section six of this article;
and (4) any other moneys received by the authority, except moneys
deposited into the school major improvement fund, shall be set
aside by the authority as an emergency fund to be distributed in
accordance with the guidelines adopted by the authority.
(d) The remaining moneys determined by the authority to be
available for distribution during the then current fiscal year
from: (1) Moneys 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 moneys in
the school building debt service fund are pledged as security;
(3) moneys paid into the school construction fund pursuant to
section six of this article; and (4) any other moneys received by
the authority, except moneys deposited into the school major
improvement fund, shall be allocated and expended on the basis of
need and efficient use of resources, the basis to be determined
by the authority in accordance with the provisions of section
sixteen of this article.
(e) If a county board of education proposes to finance a
project that is approved pursuant to section sixteen of this article through a lease with an option to purchase leased
premises upon the expiration of the total lease period pursuant
to an investment contract, the authority may allocate no moneys
to the county board in connection with the project:
Provided,
That the authority may transfer moneys to the state board of
education, which, with the authority, shall lend the amount
transferred to the county board to be used only for a one-time
payment due at the beginning of the lease term, made for the
purpose of reducing annual lease payments under the investment
contract, subject to the following conditions:
(1) The loan shall be secured in the manner required by the
authority, in consultation with the state board, and shall be
repaid in a period and bear interest at a rate as determined by
the state board and the authority and shall have such terms and
conditions as are required by the authority, all of which shall
be set forth in a loan agreement among the authority, the state
board and the county board;
(2) The loan agreement shall provide for the state board and
the authority to defer the payment of principal and interest upon
any loan made to the county board during the term of the
investment contract, and annual renewals of the investment
contract, among the state board, the authority, the county board
and a lessor:
Provided, That in the event a county board, which
has received a loan from the authority for a one-time payment at the beginning of the lease term, does not renew the subject lease
annually until performance of the investment contract in its
entirety is completed, the county board is in default and the
principal of the loan, together with all unpaid interest accrued
to the date of the default, shall at the option of the authority,
in consultation with the state board, become due and payable
immediately or subject to renegotiation among the state board,
the authority and the county board:
Provided, however, That if
a county board renews the lease annually through the performance
of the investment contract in its entirety, the county board
shall exercise its option to purchase the leased premises:
Provided further, That the failure of the county board to make a
scheduled payment pursuant to the investment contract constitutes
an event of default under the loan agreement:
And provided
further, That upon a default by a county board, the principal of
the loan, together with all unpaid interest accrued to the date
of the default, shall at the option of the authority, in
consultation with the state board, become due and payable
immediately or subject to renegotiation among the state board,
the authority and the county board:
And provided further, That
if the loan becomes due and payable immediately, the authority,
in consultation with the state board, shall use all means
available under the loan agreement and law to collect the
outstanding principal balance of the loan, together with all unpaid interest accrued to the date of payment of the outstanding
principal balance; and
(3) The loan agreement shall provide for the state board and
the authority to forgive all principal and interest of the loan
upon the county board purchasing the leased premises pursuant to
the investment contract and performance of the investment
contract in its entirety.
(f) To encourage county boards to proceed promptly with
facilities planning and to prepare for the expenditure of any
state moneys derived from the sources described in this
subsection, any county board failing to expend money within three
years of the allocation to the county board shall forfeit the
allocation and thereafter is ineligible for further allocations
pursuant to this subsection until the county board is ready to
expend funds in accordance with an approved facilities plan:
Provided, That the authority may authorize an extension beyond
the three-year forfeiture period not to exceed an additional two
years. Any amount forfeited shall be added to the total funds
available in the school construction fund of the authority for
future allocation and distribution.
(g) The remaining moneys that are determined by the authority
to be available for distribution during the then current fiscal
year from moneys paid into the school major improvement fund
pursuant to section six of this article shall be allocated and distributed on the basis of need and efficient use of resources,
the basis to be determined by the authority in accordance with
the provisions of section sixteen of this article:
Provided,
That the moneys may not be distributed to any county board that
does not have an approved school major improvement plan or to any
county board that is not prepared to commence expenditures of the
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, the principal amount
to remain to the credit of and available to the county board for
a period of two years. Any moneys which are unexpended after a
two-year period shall be redistributed on the basis of need from
the school major improvement fund in that fiscal year.
(h) No local matching funds may be required under the
provisions of this section. However, the responsibilities of the
county boards of education to maintain school facilities are not
negated by the provisions of this article. To be eligible to
receive an allocation of school major improvement funds from the
authority, a county board must have expended in the previous
fiscal year an amount of county moneys equal to or exceeding the
lowest average amount of money included in the county board's
maintenance budget over any three of the previous five years and
must have budgeted an amount equal to or greater than the average in the current fiscal year:
Provided, That the state board of
education shall promulgate rules relating to county boards'
maintenance budgets, including items which shall be included in
the budgets.
(i) Any county board may use moneys provided by the authority
under this article in conjunction with local funds derived from
bonding, special levy or other sources. Distribution to a county
board, or to the state board or the administrative council of an
area vocational educational center pursuant to subsection (b) of
this section, may be in a lump sum or in accordance with a
schedule of payments adopted by the authority pursuant to
guidelines adopted by the authority.
(j) Funds in the school construction fund shall first be
transferred and expended as follows:
Any funds deposited in the school construction fund shall be
expended first in accordance with an appropriation by the
Legislature. To the extent that funds are available in the
school construction fund in excess of that amount appropriated in
any fiscal year, the excess funds may be expended in accordance
with the provisions of this article. Any projects which the
authority identified and announced for funding on or before the
first day of August, one thousand nine hundred ninety-five, or
identified and announced for funding on or before the thirty- first day of December, one thousand nine hundred ninety-five, shall be funded by the authority in an amount which is not less
than the amount specified when the project was identified and
announced.
(k) It is the intent of the Legislature to encourage county
boards to explore and consider arrangements with other counties
that may facilitate the highest and best use of all available
funds, which may result in improved transportation arrangements
for students, or which otherwise may create efficiencies for
county boards and the students. In order to address the intent
of the Legislature contained in this subsection, the authority
shall grant preference to those projects which involve
multicounty arrangements as the authority shall determine
reasonable and proper.
(l) County boards shall submit all designs for construction of
new school buildings to the school building authority for review
and approval prior to preparation of final bid documents.
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 these educational programs 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.
When the school improvement bonds, secured by profits from
the lottery and deposited in the school debt service fund,
mature, the lottery director shall allocate monthly, from the net
profits of the lottery for the preceding month, an amount equal
to one million five hundred thousand dollars into the school
construction fund created pursuant to the provisions of section
six, article nine-d, chapter eighteen of this code.
(i) On or before the twenty-eighth day of each month 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 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 them 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.