Introduced Version
House Bill 2581 History
| 
Email
Key: Green = existing Code. Red = new code to be enacted
H. B. 2581
(By Delegates Fleischauer, Barrett, Lawrence, Diserio,
Young, Stephens, Miller, Sobonya, Longstreth, Marshall and Barill)
[Introduced February 21, 2013; referred to the
Committee on Education then Finance.]
A BILL to amend and reenact §29-22-18a of the Code of West
Virginia, 1931, as amended, relating to requiring that a sum
certain be deposited into the Education Improvement Fund for
appropriation by the Legislature to the PROMISE Scholarship
Fund to provide full tuition and fees for PROMISE scholarships
for fiscal year 2014.
Be it enacted by the Legislature of West Virginia:
That §29-22-18a of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State Excess Lottery Revenue Fund.
(a) The State Lottery Fund in the State Treasury which is
designated and known as the State Excess Lottery Revenue Fund is
continued. The fund consists 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 under the provisions of sections ten-b and ten-c, article
twenty-two-a of this chapter and under article twenty-two-b of this
chapter, except the amounts due the commission under subdivision
(1), subsection (a), section one thousand four hundred eight,
article twenty-two-b of this chapter, shall be deposited in the
State Treasury and placed into the State Excess Lottery Revenue
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 State Auditor and the State Treasurer as part of
the general revenue of the state.
(b) For the fiscal year beginning July 1, 2002, the commission
shall deposit: (1) Sixty-five million dollars into the subaccount
of the state Excess Lottery Revenue Fund hereby created in the
State Treasury to be known as the General Purpose Account to be
expended pursuant to appropriation of the Legislature; (2) ten
million dollars into the Education Improvement Fund for
appropriation by the Legislature to the PROMISE Scholarship Fund
created in section seven, article seven, chapter eighteen-c of this
code; (3) nineteen million dollars into the Economic Development
Project Fund created in subsection (e) of this section for the
issuance of revenue bonds and to be spent in accordance with the
provisions of said subsection; (4) twenty million dollars into the
School Building Debt Service Fund created in section six, article
nine-d, chapter eighteen of this code for the issuance of revenue bonds; (5) forty million dollars into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) ten million dollars into the Higher
Education Improvement Fund for Higher Education; and (7) five
million dollars into the state Park Improvement Fund for Park
Improvements. For the fiscal year beginning July 1, 2003, the
commission shall deposit: (1) sixty-five million dollars into the
General Purpose Account to be expended pursuant to appropriation of
the Legislature; (2) seventeen million dollars into the Education
Improvement Fund for appropriation by the Legislature to the
PROMISE Scholarship Fund created in section seven, article seven,
chapter eighteen-c of this code; (3) nineteen million dollars into
the Economic Development Project Fund created in subsection (e) of
this section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) twenty
million dollars into the School Building Debt Service Fund created
in section six, article nine-d, chapter eighteen of this code for
the issuance of revenue bonds; (5) forty million dollars into the
West Virginia Infrastructure Fund created in section nine, article
fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) ten million
dollars into the Higher Education Improvement Fund for Higher
Education; and (7) seven million dollars into the State Park Improvement Fund for Park Improvements.
(c) For the fiscal year beginning July 1, 2004, and subsequent
fiscal years through the fiscal year ending June 30, 2009, the
commission shall deposit: (1) Sixty-five million dollars into the
General Purpose Account to be expended pursuant to appropriation of
the Legislature; (2) twenty-seven million dollars into the
Education Improvement Fund for appropriation by the Legislature to
the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) nineteen million
dollars into the Economic Development Project Fund created in
subsection (e) of this section for the issuance of revenue bonds
and to be spent in accordance with the provisions of said
subsection; (4) nineteen million dollars into the School Building
Debt Service Fund created in section six, article nine-d, chapter
eighteen of this code for the issuance of revenue bonds: Provided,
That for the fiscal year beginning July 1, 2008, and subsequent
fiscal years, no moneys shall be deposited in the School Building
Debt Service Fund pursuant to this subsection and, instead, $19
million shall be deposited into the Excess Lottery School Building
Debt Service Fund; (5) forty million dollars into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) ten million dollars into the Higher
Education Improvement Fund for Higher Education; and (7) five million dollars into the State Park Improvement Fund for Park
Improvements. No portion of the distributions made as provided in
this subsection and subsection (b) of this section, except
distributions made in connection with bonds issued under subsection
(e) of this section, may be used to pay debt service on bonded
indebtedness until after the Legislature expressly authorizes
issuance of the bonds and payment of debt service on the bonds
through statutory enactment or the adoption of a concurrent
resolution by both houses of the Legislature. Until subsequent
legislative enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service on the
bonds with funds distributed under this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (d) of this section, the
distributions may be used only to fund capital improvements that
are not financed by bonds and only pursuant to appropriation of the
Legislature.
(d) For the fiscal year beginning July 1, 2009, and subsequent
fiscal years, the commission shall deposit: (1) Sixty-five million
dollars into the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) twenty-nine million dollars
into the Education Improvement Fund for appropriation by the
Legislature to the PROMISE Scholarship Fund created in section
seven, article seven, chapter eighteen-c of this code: Provided, That for fiscal year 2014, a sum in the amount of $3,409,525 shall
be deposited into the Education Improvement Fund for appropriation
by the Legislature for the purpose of providing full tuition and
fee awards for PROMISE scholars at public institutions and for
providing a comparable amount for PROMISE scholars at private
institutions; (3) nineteen million dollars into the Economic
Development Project Fund created in subsection (e) of this section
for the issuance of revenue bonds and to be spent in accordance
with the provisions of said subsection; (4) nineteen million
dollars into the Excess Lottery School Building Debt Service Fund
created in section six, article nine-d, chapter eighteen of this
code; (5) forty million dollars into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) ten million dollars into the Higher
Education Improvement Fund for Higher Education; and (7) five
million dollars into the State Park Improvement Fund for Park
Improvements. No portion of the distributions made as provided in
this subsection and subsection (b) of this section, except
distributions made in connection with bonds issued under subsection
(e) of this section, may be used to pay debt service on bonded
indebtedness until after the Legislature expressly authorizes
issuance of the bonds and payment of debt service on the bonds
through statutory enactment or the adoption of a concurrent resolution by both houses of the Legislature. Until subsequent
legislative enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service on the
bonds with funds distributed under this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (e) of this section, the
distributions may be used only to fund capital improvements that
are not financed by bonds and only pursuant to appropriation of the
Legislature.
(e) The Legislature finds and declares that in order to
attract new business, commerce 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 of this state and the economic welfare of the citizens
of this state, it is necessary to provide public financial support
for constructing, equipping, improving and maintaining economic
development projects, capital improvement projects and
infrastructure which promote economic development in this state.
(1) The West Virginia Economic Development Authority created
and provided for in article fifteen, chapter thirty-one of this
code shall, by resolution, in accordance with the provisions of
this article and article fifteen, chapter thirty-one of this code,
and upon direction of the Governor, issue revenue bonds of the
Economic Development Authority in no more than two series to pay for all or a portion of the cost of constructing, equipping,
improving or maintaining projects under this section or to refund
the bonds at the discretion of the authority. Any Revenue bonds
issued on or after July 1, 2002, which are secured by state excess
lottery revenue proceeds shall mature at a time or times not
exceeding thirty years from their respective dates. The principal
of and the interest and redemption premium, if any, on the bonds
shall be are payable solely from the special fund provided in this
section for the payment.
(2) The special revenue fund named the Economic Development
Project Fund into which shall be is deposited the amounts to be
deposited in the fund as specified in subsections (b), (c) and (d)
of this section is continued. The Economic Development Project
Fund shall consist consists of all such moneys, all appropriations
to the fund, all interest earned from investment of the fund and
any gifts, grants or contributions received by the fund. 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, including any and all commercially customary and
reasonable costs and expenses which may be incurred in connection
with the issuance, refunding, redemption or defeasance of the
bonds. The West Virginia Economic Development Authority may
further provide in the resolution and in the trust agreement for priorities on the revenues paid into the Economic Development
Project Fund that are 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
subsection shall be separate from all other bonds which may be or
have been issued, from time to time, under the provisions of this
article.
(3) After the West Virginia Economic Development Authority has
issued bonds authorized by this section and after the requirements
of all funds have been satisfied, including any coverage and
reserve funds established in connection with the bonds issued
pursuant to this subsection, any balance remaining in the Economic
Development Project Fund may be used for the redemption of any of
the outstanding bonds issued under this subsection 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.
(4) Bonds issued under this subsection shall state on their
face that the bonds do not constitute a debt of the State of West
Virginia; that payment of the bonds, interest and charges thereon
cannot become an obligation of the State of West Virginia; and that
the bondholders' remedies are limited in all respects to the
Special Revenue Fund established in this subsection for the liquidation of the bonds.
(5) The West Virginia Economic Development Authority shall
expend the bond proceeds from the revenue bond issues authorized
and directed by this section for projects certified under the
provision of this subsection: Provided, That the bond proceeds
shall be expended in accordance with the requirements and
provisions of article five-a, chapter twenty-one of this code and
either article twenty-two or twenty-two-a, chapter five of this
code, as the case may be: Provided, however, That if the bond
proceeds are expended pursuant to article twenty-two-a, chapter
five of this code and if the Design-Build Board created under said
article determines that the execution of a design-build contract in
connection with a project is appropriate pursuant to the criteria
set forth in said article and that a competitive bidding process
was used in selecting the design builder and awarding the contract,
the determination shall be is conclusive for all purposes and shall
be considered to satisfy all the requirements of said article.
(6) For the purpose of certifying the projects that will
receive funds from the bond proceeds, a committee is hereby
established and comprised of the Governor or his or her designee,
the Secretary of the Department of Revenue, the Executive Director
of the West Virginia Development Office and six persons appointed
by the Governor: Provided, That at least one citizen member must
be from each of the state's three congressional districts. The committee shall meet as often as necessary and make certifications
from bond proceeds in accordance with this subsection. The
committee shall meet within thirty days of the effective date of
this section.
(7) Applications for grants submitted on or before July 1,
2002, shall be considered refiled with the committee. Within ten
days from the effective date of this section as amended in the year
2003, the lead applicant shall file with the committee any
amendments to the original application that may be necessary to
properly reflect changes in facts and circumstances since the
application was originally filed with the committee.
(8) When determining whether or not to certify a project, the
committee shall take into consideration the following:
(A) The ability of the project to leverage other sources of
funding;
(B) Whether funding for the amount requested in the grant
application is or reasonably should be available from commercial
sources;
(C) The ability of the project to create or retain jobs,
considering the number of jobs, the type of jobs, whether benefits
are or will be paid, the type of benefits involved and the
compensation reasonably anticipated to be paid persons filling new
jobs or the compensation currently paid to persons whose jobs would
be retained;
(D) Whether the project will promote economic development in
the region and the type of economic development that will be
promoted;
(E) The type of capital investments to be made with bond
proceeds and the useful life of the capital investments; and
(F) Whether the project is in the best interest of the public.
(9) A grant may not be awarded to an individual or other
private person or entity. Grants may be awarded only to an agency,
instrumentality or political subdivision of this state or to an
agency or instrumentality of a political subdivision of this state.
The project of an individual or private person or entity may
be certified to receive a low-interest loan paid from bond
proceeds. The terms and conditions of the loan including, but not
limited to, the rate of interest to be paid and the period of the
repayment, shall be is determined by the Economic Development
Authority after considering all applicable facts and circumstances.
(10) Prior to making each certification, the committee shall
conduct at least one public hearing which may 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.
(11) The committee may not certify a project unless the
committee finds that the project is in the public interest and the grant will be used for a public purpose. For purposes of this
subsection, projects in the public interest and for a public
purpose include, but are not limited to:
(A) Sports arenas, fields, parks, stadiums and other sports
and sports-related facilities;
(B) Health clinics and other health facilities;
(C) Traditional infrastructure, such as water and wastewater
treatment facilities, pumping facilities and transmission lines;
(D) State-of-the-art telecommunications infrastructure;
(E) Biotechnical incubators, development centers and
facilities;
(F) Industrial parks, including construction of roads, sewer,
water, lighting and other facilities;
(G) Improvements at state parks, such as construction,
expansion or extensive renovation of lodges, cabins, conference
facilities and restaurants;
(H) Railroad bridges, switches and track extension or spurs on
public or private land necessary to retain existing businesses or
attract new businesses;
(I) Recreational facilities, such as amphitheaters, walking
and hiking trails, bike trails, picnic facilities, restrooms, boat
docking and fishing piers, basketball and tennis courts, and
baseball, football and soccer fields;
(J) State-owned buildings that are registered on the National Register of Historic Places;
(K) Retail facilities, including related service, parking and
transportation facilities, appropriate lighting, landscaping and
security systems to revitalize decaying downtown areas; and
(L) Other facilities that promote or enhance economic
development, educational opportunities or tourism opportunities
thereby promoting the general welfare of this state and its
residents.
(12) Prior to the issuance of bonds under this subsection, the
committee shall certify to the Economic Development Authority a
list of those certified projects that will receive funds from the
proceeds of the bonds. Once certified, the list may not thereafter
be altered or amended other than by legislative enactment.
(13) If any proceeds from sale of bonds remain after paying
costs and making grants and loans as provided in this subsection,
the surplus may be deposited in an account in the State Treasury
known as the Economic Development Project Bridge Loan Fund
administered by the Economic Development Authority created in
article fifteen, chapter thirty-one of this code. Expenditures
from the fund are not authorized from collections but are to be
made only in accordance with appropriation by the Legislature and
in accordance with the provisions of article three, chapter twelve
of this code and upon fulfillment of the provisions of article two,
chapter five-a of this code. Loan repayment amounts, including the portion attributable to interest, shall be paid into the fund
created in this subdivision.
(f) If the commission receives revenues in an amount that is
not sufficient to fully comply with the requirements of subsections
(b), (c), (d) and (i) of this section, the commission shall first
make the distribution to the Economic Development Project Fund;
second, make the distribution or distributions to the other funds
from which debt service is to be paid; third, make the distribution
to the Education Improvement Fund for appropriation by the
Legislature to the PROMISE Scholarship Fund; and fourth, make the
distribution to the General Purpose Account: Provided, That
subject to the provisions of this subsection, to the extent the
revenues are not pledged in support of revenue bonds which are or
may be issued, from time to time, under this section, the revenues
shall be distributed on a pro rata basis.
(g) Each fiscal year, the commission shall, after meeting the
requirements of subsections (b), (c), (d) and (i) of this section
and after transferring to the State Lottery Fund created under
section eighteen of this article an amount equal to any transfer
from the State Lottery Fund to the Excess Lottery Fund pursuant to
subsection (f), section eighteen of this article, deposit fifty
percent of the amount by which annual gross revenue deposited in
the State Excess Lottery Revenue Fund exceeds $225 million in a
fiscal year in a separate account in the State Lottery Fund to be available for appropriation by the Legislature.
(h) When bonds are issued for projects under subsection (d)
(e) subsections (d) and (e) of this section or for the School
Building Authority, infrastructure, higher education or park
improvement purposes described in this section that are secured by
profits from lotteries deposited in the State Excess Lottery
Revenue Fund, the Lottery Director shall allocate first to the
Economic Development Project Fund an amount equal to one tenth of
the projected annual principal, interest and coverage requirements
on any and all revenue bonds issued or to be issued as certified to
the Lottery Director; and second, to the fund or funds from which
debt service is paid on bonds issued under this section for the
School Building Authority, infrastructure, higher education and
park improvements an amount equal to one tenth of the projected
annual principal, interest and coverage requirements on any and all
revenue bonds issued or to be issued as certified to the Lottery
Director. In the event there are insufficient funds available in
any month to transfer the amounts required pursuant to this
subsection, the deficiency shall be added to the amount transferred
in the next succeeding month in which revenues are available to
transfer the deficiency.
(i) Prior to the distributions provided in subsection (d) of
this section, the Lottery Commission shall deposit into the General
Revenue Fund amounts necessary to provide reimbursement for the refundable credit allowable under section twenty-one, article
twenty-one, chapter eleven of this code.
(j)(1) The Legislature considers the following as priorities
in the expenditure of any surplus revenue funds:
(A) Providing salary and/or increment increases for
professional educators and public employees;
(B) Providing adequate funding for the Public Employees
Insurance Agency; and
(C) Providing funding to help address the shortage of
qualified teachers and substitutes in areas of need, both in number
of teachers and in subject matter areas.
(2) The provisions of this subsection may not be construed by
any court to do not require any appropriation or any specific
appropriation or level of funding for the purposes set forth in
this subsection.
(k) The Legislature further directs the Governor to focus
resources on the creation of a prescription drug program for senior
citizens by pursuing a Medicaid waiver to offer prescription drug
services to senior citizens; by investigating the establishment of
purchasing agreements with other entities to reduce costs; by
providing discount prices or rebate programs for seniors; by
coordinating programs offered by pharmaceutical manufacturers that
provide reduced cost or free drugs; by coordinating a collaborative
effort among all state agencies to ensure the most efficient and cost-effective program possible for the senior citizens of this
state; and by working closely with the state's congressional
delegation to ensure that a national program is implemented. The
Legislature further directs that the Governor report his or her
progress back to the Joint Committee on Government and Finance on
an annual basis until a comprehensive program has been fully
implemented.
(l) After all of the expenditures in subsections (a) through
(i) of this section have been satisfied in any fiscal year, the
next $2 million shall be distributed as follows:
(1) On the last day of the fiscal year that begins on July 1,
2010, and for each fiscal year thereafter, forty-six percent shall
be placed in the general purse fund of a thoroughbred racetrack
licensee that did not participate in the Thoroughbred Development
Fund for at least four consecutive calendar years prior to December
31, 1992, for payment of regular purses;
(2) Forty-three and one half percent shall be distributed to
the Racing Commission Special Account - unredeemed pari-mutual
tickets established on behalf of a thoroughbred racetrack licensee
that did participate in the Thoroughbred Development Fund for at
least four consecutive calendar years prior to December 31, 1992;
(3) Five and one half percent shall be distributed to the
Racing Commission Special Account - unredeemed pari-mutual tickets
established on behalf of a thoroughbred racetrack licensee that did not participate in the Thoroughbred Development Fund for at least
four consecutive calendar years prior to December 31, 1992; and
(4) Five percent shall be distributed to the West Virginia
Racing Commission Special Account - Greyhound Breeding Development
Fund.
NOTE: The purpose of this bill is to require that a sum
certain be deposited into the Education Improvement Fund for
appropriation by the Legislature to the PROMISE Scholarship Fund to
provide full tuition and fees for PROMISE scholarships for fiscal
year 2014.
Strike-throughs indicate language that would be stricken from
the present law and underscoring indicates new language that would
be added.
Webmaster | © 2024 West Virginia Legislature **
