FLOOR AMENDMENT (MARSHALL) AGREED TO BY HOUSE OF DELEGATES

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2. That, for all taxable years beginning on or after January 1, 1999, the State Tax Commissioner shall include in the instructions for the preparation of the Virginia Individual Income Tax return the percentage of the local tangible personal property tax which was paid to the locality on behalf of the taxpayer by the Commonwealth of Virginia.

FLOOR AMENDMENTS (JACKSON) AGREED TO BY HOUSE OF DELEGATES

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and 58.1-3912

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, 58.1-3912 and 58.1-4022

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and 58.1-3912

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58.1-3912 and 58.1-4022

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§ 58.1-4022. State Lottery Fund.

A. All moneys received from the sale of lottery tickets or shares, less payment for prizes and compensation of agents as authorized by regulation and any other revenues received under this chapter, shall be placed in a special fund known as the "State Lottery Fund." Notwithstanding any other provisions of law, interest earned from moneys in the State Lottery Fund shall accrue to the benefit of such Fund.

B. The total costs for the operation and administration of the lottery shall be funded from the State Lottery Fund and shall be in such amount as provided in the general appropriation act. Appropriations to the Department during any fiscal year beginning on and after July 1, 1989, exclusive of agent compensation, shall at no time exceed ten percent of the total annual estimated gross revenues to be generated from lottery sales. However, should it be anticipated at any time by the Director that such operational and administrative costs for a fiscal year will exceed the limitation provided herein, the Director shall immediately report such information to the Board, the Governor and the Chairmen of Senate Finance and House Appropriations Committees. From the moneys in the Fund, the Comptroller shall establish a special reserve fund in such amount as shall be provided by regulation of the Department for (i) operation of the lottery, (ii) use if the game's pay-out liabilities exceed its cash on hand, or (iii) enhancement of the prize pool with income derived from lending securities held for payment of prize installments, which lending of securities shall be conducted in accordance with lending programs approved by the Department of the Treasury.

C. Any start-up sums appropriated from the general fund of the Commonwealth necessary to commence operation of a state lottery shall be repaid within the first twelve months of initial lottery sales.

D. Appropriation of lottery revenues shall be made only upon actual and audited collections as transferred to the general fund and shall in no event be predicated upon an estimation of such revenues. No later than ten days after receipt of the audit report required by § 58.1-4023, the Comptroller shall transfer to the general fund, less the special reserve fund, the audited balances of the State Lottery Fund. In addition to such other funds as may be appropriated, 100 percent of the lottery revenues transferred to the general fund shall be appropriated entirely and solely for the purpose of public education in the Commonwealth, which purposes shall include, but not be limited to, those programs specified in § 22.1-199.1.

Of the lottery revenues transferred to the general fund and appropriated entirely and solely for the purpose of public education in the Commonwealth, such funds shall be deposited in the Virginia Public School Construction Grants Fund as follows: (i) twenty percent shall be deposited in fiscal year 2001; (ii) thirty percent shall be deposited in fiscal year 2002; (iii) forty percent shall be deposited in fiscal year 2003; and (iv) fifty percent shall be deposited in fiscal year 2004 and thereafter. Notwithstanding the foregoing, the percentage level of the lottery revenues deposited in the Virginia Public School Construction Grants Fund shall not be increased in any fiscal year (i) in which any one of the three conditions in subsection C of § 58.1-3524 are in effect with regard to the Personal Property Tax Relief Act of 1998 or (ii) if in any fiscal year the aggregate of the total amount of payments to treasurers for personal property tax relief pursuant to Chapter 35.1 of Title 58.1 and the total lottery revenues to be deposited in the Virginia Public School Construction Grants Fund exceeds the percentage of total general fund revenues available for appropriation established as a limitation upon payments to treasurers in § 58.1-3536.

E. As a function of the administration of this chapter, funds may be expended for the purposes of reasonably informing the public concerning (i) the facts embraced in the subjects contained in subdivisions 1 through 7 of subsection A of § 58.1-4007 and (ii) the fact that the net proceeds are paid into the general fund of the Commonwealth; but no funds shall be expended for the primary purpose of inducing persons to participate in the lottery.

2. That there shall be appropriated and distributed to the Virginia Public School Construction Grants Fund no less than $62.5 million in each fiscal year of the 1998-2000 biennium.

FLOOR AMENDMENTS (RUST) AGREED TO BY HOUSE OF DELEGATES

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A. All funds appropriated for financial assistance for the purposes of this chapter during fiscal years 1998-1999 and 1999-2000 pursuant to Item 554 of the 1998-2000 Appropriation Act shall be allocated and distributed annually to school divisions in accordance with the following: (i) forty percent of the available grant funds shall be allocated and distributed equally to each school division; (ii) forty percent of the available grant funds shall be allocated and distributed to each school division on a pro rata basis according to the school division's average daily membership adjusted by the locality's composite index; and (iii) twenty percent of the available grant funds shall be allocated and distributed to each school division on a pro rata basis according to the school division's average daily membership.

B. All funds appropriated for financial assistance for the purposes of this chapter for subsequent years shall be apportioned and distributed among the school divisions of the Commonwealth in accordance with eligibility and needs criteria to be hereafter established by the General Assembly. In developing such eligibility and needs criteria, the General Assembly shall consider the recommendations of the Commission on State Funding of Public School Construction.

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one

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one-half

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2. § 1. That the Commission on State Funding of Public School Construction is hereby established. The Commission shall be composed of 12 members, which shall include 7 legislative members and 5 nonlegislative citizen members as follows: the Co-Chairmen of the House Committee on Appropriations, or their respective designees, the Co-Chairmen of the House Committee on Finance, or their respective designees; the Co-Chairs of the Senate Committee on Finance, or their respective designees, one additional member of the Senate, to be appointed by the Senate Committee on Privileges and Elections; and five citizen members, who may or may not be employees of the Commonwealth, to be appointed by the Governor.

§ 2. The Commission shall recommend to the General Assembly (i) a statewide method for assessing and quantifying the public school construction and renovation needs of local governments and (ii) specific eligibility and needs criteria to govern the disbursement and apportionment of funds to local school divisions under the Virginia Public School Construction Grants Program. The eligibility and needs criteria shall include, but need not be limited to, provisions which address the following: (i) factors to be applied to all localities to measure actual need; (ii) factors to be applied to all localities to measure local effort to meet actual need; (iii) factors to be applied to all localities to measure local ability to pay for actual need; (iv) factors to be applied to all localities to recognize local innovations and activities to improve the quality of and options for education, including, but not limited to, efforts to reduce class sizes; (v) appropriate combinations of funding resources for the eligible projects, including grant funds, local funds, Literary Fund loans, and bonds or other funding through the Virginia Public School Authority, and moneys obtained from any other public or private funding sources; (vi) restrictions on the use of grant funds, if any; (vii) requirements for the availability and pledge of local matching funds; and (viii) procedures for determining priority for awarding grants to qualifying school divisions.

§ 3. The House Committee on Appropriations, the Senate Committee on Finance, and the Division of Legislative Services shall provide staff support for the Commission. All agencies of the Commonwealth shall provide assistance to the Commission, upon request.

§ 4. The Commission shall complete its work in time to submit its findings and recommendations to the Governor and the 1999 Session of the General Assembly.

3. That, notwithstanding any other provision of law to the contrary, the provisions of this act relating to the Virginia Public School Construction Grants Program shall be deemed to constitute the plan for school construction funding contained in the 1998-2000 Appropriation Act.