Senate Bill No. 380
(By Senator Barnes)
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[Introduced February 2, 2011; referred to the Committee on
Finance.]
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A BILL to amend and reenact §11B-2-20 of the Code of West Virginia,
1931, as amended, relating to increasing the Revenue Shortfall
Reserve Fund from $100 million to $500 million.
Be it enacted by the Legislature of West Virginia:
That §11B-2-20 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2. STATE BUDGET OFFICE.
§11B-2-20. Reduction of appropriations; powers of Governor;
Revenue Shortfall Reserve Fund and permissible
expenditures therefrom.
(a) Notwithstanding any provision of this section, the
Governor may reduce appropriations according to any of the methods
set forth in sections twenty-one and twenty-two of this article.
The Governor may, in lieu of imposing a reduction in
appropriations, request an appropriation by the Legislature from the Revenue Shortfall Reserve Fund established in this section.
(b) A Revenue Shortfall Reserve Fund is hereby continued
within the State Treasury. The Revenue Shortfall Reserve Fund
shall be funded as set forth in this subsection from surplus
revenues, if any, in the state fund, general revenue, as the
surplus revenues may accrue from time to time. Within sixty days
of the end of each fiscal year, the secretary shall cause to be
deposited into the Revenue Shortfall Reserve Fund the first fifty
percent of all surplus revenues, if any, determined to have accrued
during the fiscal year just ended. The Revenue Shortfall Reserve
Fund shall be funded continuously and on a revolving basis in
accordance with this subsection up to an aggregate amount not to
exceed ten percent of the total appropriations from the state fund,
general revenue, for the fiscal year just ended. If at the end of
any fiscal year the Revenue Shortfall Reserve Fund is funded at an
amount equal to or exceeding ten percent of the state's General
Revenue Fund budget for the fiscal year just ended, then there
shall be no further obligation of the secretary under the
provisions of this section to apply any surplus revenues as set
forth in this subsection until that time the Revenue Shortfall
Reserve Fund balance is less than ten percent of the total
appropriations from the state fund, general revenue.
(c) Not earlier than November 1, of each calendar year, if the
state's fiscal circumstances are such as to otherwise trigger the
authority of the Governor to reduce appropriations under this section or section twenty-one or section twenty-two of this
article, then in that event the Governor may notify the presiding
officers of both houses of the Legislature in writing of his or her
intention to convene the Legislature pursuant to section nineteen,
article VI of the Constitution of West Virginia for the purpose of
requesting the introduction of a supplementary appropriation bill
or to request a supplementary appropriation bill at the next
preceding regular session of the Legislature to draw money from the
surplus Revenue Shortfall Reserve Fund to meet any anticipated
revenue shortfall. If the Legislature fails to enact a
supplementary appropriation from the Revenue Shortfall Reserve Fund
during any special legislative session called for the purposes set
forth in this section or during the next preceding regular session
of the Legislature, then the Governor may proceed with a reduction
of appropriations pursuant to sections twenty-one and twenty-two of
this article. Should any amount drawn from the Revenue Shortfall
Reserve Fund pursuant to an appropriation made by the Legislature
prove insufficient to address any anticipated shortfall, then the
Governor may also proceed with a reduction of appropriations
pursuant to sections twenty-one and twenty-two of this article.
(d) Upon the creation of the fund, the Legislature is
authorized and may make an appropriation from the Revenue Shortfall
Reserve Fund for revenue shortfalls, for emergency revenue needs
caused by acts of God or natural disasters or for other fiscal
needs as determined solely by the Legislature.
(e) Prior to October 31, in any fiscal year in which revenues
are inadequate to make timely payments of the state's obligations,
the Governor may by executive order, after first notifying the
presiding officers of both houses of the Legislature in writing,
borrow funds from the Revenue Shortfall Reserve Fund. The amount
of funds borrowed under this subsection shall not exceed one and
one-half percent of the general revenue estimate for the fiscal
year in which the funds are to be borrowed, or the amount the
Governor determines is necessary to make timely payment of the
state's obligations, whichever is less. Any funds borrowed
pursuant to this subsection shall be repaid, without interest, and
redeposited to the credit of the Revenue Shortfall Reserve Fund
within ninety days of their withdrawal.
(f) There is hereby created in the State Treasury the "Revenue
Shortfall Reserve Fund - Part B." The Revenue Shortfall Reserve
Fund - Part B shall consist of moneys transferred from the West
Virginia Tobacco Settlement Medical Trust Fund pursuant to the
provisions of section two, article eleven-a, chapter four of this
code, repayments made of the loan from the West Virginia Tobacco
Settlement Medical Trust Fund to the Physician's Mutual Insurance
Company pursuant to the provisions of article twenty-f, chapter
thirty-three of this code, and all interest and other return earned
on the moneys in the Revenue Shortfall Reserve Fund - Part B.
Moneys in the Revenue Shortfall Reserve Fund - Part B may be
expended solely for the purposes set forth in subsection (d) of this section, subject to the following conditions:
(1) No moneys in the Revenue Shortfall Reserve Fund - Part B
nor any interest or other return earned thereon may be expended for
any purpose unless all moneys in the Revenue Shortfall Reserve Fund
described in subsection (b) of this section have first been
expended, except that the interest or other return earned on moneys
in the Revenue Shortfall Reserve Fund - Part B may be expended as
provided in subdivision (2) of this subsection; and
(2) Notwithstanding any other provision of this section to the
contrary, the Legislature may appropriate any interest and other
return earned thereon that may accrue on the moneys in the Revenue
Shortfall Reserve Fund - Part B after June 30, 2025, for
expenditure for the purposes set forth in section three, article
eleven-a, chapter four of this code; and
(3) Any appropriation made from Revenue Shortfall Reserve Fund
- Part B shall be made only in instances of revenue shortfalls or
fiscal emergencies of an extraordinary nature.
(g) Subject to the conditions upon expenditures from the
Revenue Shortfall Reserve Fund - Part B prescribed in subsection
(f) of this section, in appropriating moneys pursuant to the
provisions of this section, the Legislature may in any fiscal year
appropriate from the Revenue Shortfall Reserve Fund and the Revenue
Shortfall Reserve Fund - Part B, a total amount up to, but not
exceeding, ten percent of the total appropriations from the state
fund, general revenue, for the fiscal year just ended.
(h)(1) Of the moneys in the Revenue Shortfall Reserve Fund,
one hundred million dollars $500 million, or such greater amount as
may be certified as necessary by the director of the budget for the
purposes of subsection (e) of this section, shall be made available
to the West Virginia Board of Treasury Investments for management
and investment of the moneys in accordance with the provisions of
article six-c, chapter twelve of this code. All other moneys in
the Revenue Shortfall Reserve Fund shall be made available to the
West Virginia Investment Management Board for management and
investment of the moneys in accordance with the provisions of
article six, chapter twelve of this code. Any balance of the
Revenue Shortfall Reserve Fund including accrued interest and other
return earned thereon at the end of any fiscal year shall not
revert to the General Fund but shall remain in the Revenue
Shortfall Reserve Fund for the purposes set forth in this section.
(2) All of the moneys in the Revenue Shortfall Reserve Fund -
Part B shall be made available to the West Virginia Investment
Management Board for management and investment of the moneys in
accordance with the provisions of article six, chapter twelve of
this code. Any balance of the Revenue Shortfall Reserve Fund -
Part B, including accrued interest and other return earned thereon
at the end of any fiscal year, shall not revert to the General Fund
but shall remain in the Revenue Shortfall Reserve Fund - Part B for
the purposes set forth in this section.
NOTE: The purpose of this bill is to increase the Revenue
Shortfall Reserve Fund from $100 million to $500 million.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.