FISCAL
NOTE
WEST virginia Legislature
2017 regular session
By
[
to the Committee on Finance.
A BILL to amend and reenact §19-23-10, §19-23-12b, §19-23-13
and §19-23-13c of the Code of West Virginia, 1931, as amended; to amend said code
by adding thereto a new section, designated §19-23-10a; to amend and reenact §29-22-18a
of said code; to amend and reenact §29-22A-7,
§29-22A-10, §29-22A-10b, §29-22A-10d
and §29-22A-10e of said code; and to amend and reenact §29-22C-8, §29-22C-27
and §29-22C-27a of said code, all relating to transferring certain revenues
derived from racetrack video lottery and racetrack table games from the special
fund established for greyhound racetrack licensees to the State Excess Lottery
Revenue Fund; defunding the West Virginia Greyhound Breeding Development Fund
and transferring money dedicated to the Greyhound Breeding Development Fund to the
State Excess Lottery Revenue Fund for appropriation by the Legislature; and
eliminating the requirement that video lottery licensee must hold a racing
license to renew video lottery license or racetrack table games license.
Be it enacted by the
Legislature of West Virginia:
That §19-23-10, §19-23-12b,
§19-23-13 and §19-23-13c of the Code of West Virginia, 1931, as amended, be
amended and reenacted; that said code be amended by adding thereto a new
section, designated §19-23-10a; that §29-22-18a of said code be amended and
reenacted; that §29-22A-7, §29-22A-10, §29-22A-10b,
§29-22A-10d and §29-22a-10e of said code
be amended and reenacted; and that §29-22C-8, §29-22C-27 and §29-22C-27a of
said code be amended and reenacted, all to read as follows:
CHAPTER 19. AGRICULTURE.
PART VII. TAXATION OF HORSE AND
DOG RACING AND PARI-MUTUEL WAGERING; DISPOSITION OF REVENUES.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-10. Daily license
tax; pari-mutuel pools tax; how taxes paid; alternate tax; credits.
(a) Any racing association
conducting thoroughbred racing at any horse racetrack in this state shall pay
each day upon which horse races are run a daily license tax of $250. Any racing association
conducting harness racing at any horse racetrack in this state shall pay each
day upon which horse races are run a daily license tax of $150. Any racing association
conducting dog races shall pay each day upon which dog races are run a daily
license tax of $150. In the event thoroughbred racing, harness racing, dog
racing or any combination of the foregoing are conducted on the same day at the
same racetrack by the same racing association, only one daily license tax in
the amount of $250 shall be paid for that day. Any daily license tax shall not apply to any local,
county or state fair, horse show or agricultural or livestock exposition at
which horse racing is conducted for not more than six days.
(b) Any racing association
licensed by the Racing Commission to conduct thoroughbred racing and permitting
and conducting pari-mutuel wagering under the provisions of this article shall,
in addition to the daily license tax set forth in subsection (a) of this
section, pay to the Racing Commission, from the commission deducted each day by
the licensee from the pari-mutuel pools on thoroughbred racing a tax calculated
on the total daily contribution of all pari-mutuel pools conducted or made at
any and every thoroughbred race meeting of the licensee licensed under the
provisions of this article. The tax, on the pari-mutuel pools conducted or made
each day during the months of January, February, March, October, November and
December, shall be calculated at four- tenths of one percent of the pool; and,
on the pari-mutuel pools conducted or made each day during all other months,
shall be calculated at one and four-tenths percent of the pool: Provided,
That out of the amount realized from the three tenths of one percent decrease
in the tax effective for fiscal year 1991 and thereafter, which decrease
correspondingly increases the amount of commission retained by the licensee,
the licensee shall annually expend or dedicate: (i) One half of the realized
amount for capital improvements in its barn area at the track, subject to the
Racing Commission's prior approval of the plans for the improvements; and (ii)
the remaining one half of the realized amount for capital improvements as the
licensee may determine appropriate at the track. The term "capital
improvement" shall be as defined by the Internal Revenue Code: Provided,
however, That any racing association operating a horse racetrack in this
state having an average daily pari-mutuel pool on horse racing of $280,000 or
less per day for the race meetings of the preceding calendar year shall, in
lieu of payment of the pari-mutuel pool tax, calculated as in this subsection,
be permitted to conduct pari-mutuel wagering at the horse racetrack on the
basis of a daily pari-mutuel pool tax fixed as follows: On the daily
pari-mutuel pool not exceeding $300,000 the daily pari-mutuel pool tax shall be
$1,000 plus the otherwise applicable percentage rate imposed by this subsection
of the daily pari-mutuel pool, if any, in excess of $300,000: Provided
further, That upon the effective date of the reduction of the daily
pari-mutuel pool tax to $1,000 from the former $2,000, the association or
licensee shall daily deposit $500 into the special fund for regular purses
established by subdivision (1), subsection (b), section nine of this article: And provided further, That if an
association or licensee qualifying for the foregoing alternate tax conducts
more than one racing performance, each consisting of up to thirteen races in a
calendar day, the association or licensee shall pay both the daily license tax
imposed in subsection (a) of this section and the alternate tax in this
subsection for each performance: And provided further, That a licensee
qualifying for the foregoing alternate tax is excluded from participation in
the fund established by section thirteen-b of this article: And provided further, That this exclusion
shall not apply to any thoroughbred racetrack at which the licensee has
participated in the West Virginia Thoroughbred Development Fund for more than
four consecutive years prior to December 31, 1992. (c) Any racing association
licensed by the Racing Commission to conduct harness racing and permitting and
conducting pari-mutuel wagering under the provisions of this article shall, in
addition to the daily license tax required under subsection (a) of this
section, pay to the Racing Commission, from the commission deducted each day by
the licensee from the pari-mutuel pools on harness racing, as a tax, three
percent of the first $100,000 wagered, or any part thereof; four percent of the
next $150,000; and five and three-fourths percent of all over that amount
wagered each day in all pari-mutuel pools conducted or made at any and every
harness race meeting of the licensee licensed under the provisions of this
article.
(c) Any racing association
licensed by the Racing Commission to conduct harness racing and permitting and
conducting pari-mutuel wagering under the provisions of this article shall, in
addition to the daily license tax required under subsection (a) of this
section, pay to the Racing Commission, from the commission deducted each day by
the licensee from the pari-mutuel pools on harness racing, as a tax, three
percent of the first $100,000 wagered, or any part thereof; four percent of the
next $150,000; and five and three-fourths percent of all over that amount
wagered each day in all pari-mutuel pools conducted or made at any and every
harness race meeting of the licensee licensed under the provisions of this
article.
(d) Any racing association
licensed by the Racing Commission to conduct dog racing and permitting and
conducting pari-mutuel wagering under the provisions of this article shall, in
addition to the daily license tax required under subsection (a) of this
section, pay to the Racing Commission, from the commission deducted each day by
the licensee from the pari-mutuel pools on dog racing, as a tax, four percent
of the first $50,000 or any part thereof of the pari-mutuel pools, five percent
of the next $50,000 of the pari-mutuel pools, six percent of the next $100,000
of the pari-mutuel pools, seven percent of the next $150,000 of the pari-mutuel
pools, and eight percent of all over $350,000 wagered each day: Provided,
That the licensee shall deduct daily from the pari-mutuel tax an amount equal
to one tenth of one percent of the daily pari-mutuel pools in dog racing in
fiscal year 1990; fifteen hundredths of one percent in fiscal year 1991; two
tenths of one percent in fiscal year 1992; one quarter of one percent in fiscal
year 1993; and three tenths of one percent in fiscal year 1994 and every fiscal
year thereafter. The amounts deducted shall be paid to the Racing Commission to
be deposited by the Racing Commission in a banking institution of its choice in
a special account to be known as "West Virginia Racing Commission-Special Account-West Virginia
Greyhound Breeding Development Fund". The purpose of the fund is to
promote better breeding, training track facilities and racing of greyhounds in
the state through awards and purses to bona fide resident registered greyhound
owners of accredited West Virginia whelped greyhounds. In order to participate
and be eligible to receive an award or purse through the fund, the registered
greyhound owner must have an appropriate license from the Racing Commission to
race in West Virginia. The registered greyhound dam at the time of breeding
must be wholly or solely owned or leased by a bona fide resident or residents of
West Virginia. The accredited West Virginia whelped greyhound must be wholly or
solely owned by a bona fide resident or residents of this state. To qualify as
a bona fide resident of West Virginia, a registered greyhound owner may not
claim residency in any other state. A registered greyhound owner must prove bona fide
residency by providing to the commission personal income tax returns filed in the
State of West Virginia for the most recent tax year and the three previous tax
years, has real or personal property in this state on which the owner has paid
real or personal property taxes during the most recent tax year and the
previous three tax years and an affidavit stating that the owner claims no
other state of residency. The Racing Commission shall maintain a registry for
West Virginia bred greyhounds. The moneys shall be expended by the Racing
Commission for purses for stake races, training track facilities, supplemental
purse awards, administration, promotion, education and greyhound adoption
programs involving West Virginia whelped dogs, owned by residents of this state
under rules promulgated by the Racing Commission. The Racing Commission shall
pay out of the Greyhound Breeding Development Fund to each of the licensed dog
racing tracks the sum of $75,000 for the fiscal year ending June 30, 1994. The
licensee shall deposit the sum into the special fund for regular purses
established under the provisions of section nine of this article. The funds
shall be expended solely for the purpose of supplementing regular purses under
rules promulgated by the Racing Commission.
Supplemental
purse awards will be distributed as follows: Supplemental purses shall be paid
directly to the registered greyhound owner of an accredited greyhound.
The
registered greyhound owner of accredited West Virginia whelped greyhounds that
earn points at any West Virginia meet will receive a bonus award calculated at
the end of each month as a percentage of the fund dedicated to the owners as
purse supplements, which shall be a minimum of fifty percent of the total
moneys deposited into the West Virginia Greyhound Breeding Development Fund
monthly.
The total
amount of the fund available for the owners' awards shall be distributed
according to the ratio of points earned by an accredited greyhound to the total
amount earned in races by all accredited West Virginia whelped greyhounds for
that month as a percentage of the funds dedicated to the owners' purse
supplements. The point value at all greyhound tracks shall be the same as
approved by the Racing Commission to be effective April 1, 2007. The West
Virginia Greyhound Owners and Breeders Association shall submit a list of any additions or
deletions to the registry of accredited West Virginia whelped greyhounds on the
first of each month. The Racing Commission shall not require anyone to be a
member of a particular association in order to participate in the West Virginia
Greyhound Breeding Development Fund.
The
registered greyhound owner of an accredited West Virginia whelped greyhound
shall file a purse distribution form with the Racing Commission for a
percentage of his or her dog's earnings to be paid directly to the registered
greyhound owner or owners of the greyhound. Distribution shall be made on the
fifteenth day of each month for the preceding month's achievements.
In no
event shall points earned at a meet held at a track which did not make
contributions to the West Virginia Greyhound Breeding Development Fund out of
the daily pool on the day the meet was held qualify or count toward eligibility
for supplemental purse awards.
Any
balance in the purse supplement funds after all distributions have been made
for the year revert to the general account of the fund for distribution in the
following year: Provided, That not more than $2 million from the balance
in the Purse Supplemental Fund shall be used for the construction and
maintenance of two dog training track facilities if such be approved by the
Racing Commission: Provided, however, That not more than $1 million may
be allocated for the construction and maintenance of each training track: Provided
further, That both training track facilities must be located in West
Virginia. The West Virginia Racing Commission shall be authorized to promulgate
rules governing dog training tracks: And provided further, That the Racing
Commission shall: (1) Provide a process in its rules for competitive bidding of
the construction or maintenance, or both, of the training tracks; and (2) set
standards to assure that only the actual costs of construction and maintenance
shall be paid out of the foregoing fund.
In an
effort to further promote the breeding of quality West Virginia whelped
greyhounds, a bonus purse supplement shall be established in the amount of
$50,000 per annum, to be paid in equal quarterly installments of $12,500 per
quarter using the same method to calculate and distribute these funds as the
regular supplemental purse awards. This bonus purse supplement is for three
years only, commencing on July 1, 1993, and ending June 30, 1996. This money
would come from the current existing balance in the Greyhound Development Fund.
Each
pari-mutuel greyhound track shall provide stakes races for accredited West
Virginia whelped greyhounds: Provided, That each pari-mutuel track shall
have one juvenile and one open stake race annually. Each pari-mutuel dog track
shall provide at least three restricted races for accredited West Virginia
whelped greyhounds per race card: Provided, however, That sufficient
dogs are available. To assure breeders of accredited West Virginia whelped
greyhounds an opportunity to participate in the West Virginia Greyhound
Breeding Development Fund the West Virginia Racing Commission by July 1, each
year shall establish and announce the minimum number of accredited West
Virginia whelped greyhounds that greyhound racing kennels at West Virginia dog
tracks must have on their racing active list during the calendar year following
such action. The minimum number may vary from dog track to dog track. The
minimum number shall be established after consultation with the West Virginia
Greyhound Owners and Breeders Association and kennel owners and operators. Factors
to be considered in establishing this minimum number shall be the number of
individually registered accredited West Virginia whelped greyhounds whelped in
the previous two years. The number of all greyhounds seeking qualification at
each West Virginia dog track, the ratio of active running greyhounds to housed
number of greyhounds at each West Virginia dog track, and the size and number
of racing kennels at each West Virginia dog track. Any greyhound racing
kennel not having the minimum number of accredited West Virginia whelped
greyhounds determined by the West Virginia Racing Commission on their active
list shall only be permitted to race the maximum allowable number on the active
list less the number of accredited West Virginia whelped greyhounds below the
established minimum number. Consistent violations of this minimum requirement
may be reviewed by the Racing Commission and may constitute cause for denial or
revocation of a kennel's racing license. The Racing Commission shall oversee
and approve racing schedules and purse amounts.
Ten
percent of the deposits into the Greyhound Breeding Development Fund beginning
July 1, 1993 and continuing each year thereafter, shall be withheld by the
Racing Commission and placed in a special revenue account hereby created in the
State Treasury called the "administration, promotion, education, capital
improvement and greyhound adoption programs to include spaying and neutering
account". The Racing Commission is authorized to expend the moneys
deposited in the administration, promotion, education, capital improvement and
greyhound adoption programs to include spaying and neutering account at such
times and in such amounts as the commission determines to be necessary for
purposes of administering and promoting the greyhound development program:
Provided, That beginning with fiscal year 1995 and in each fiscal year
thereafter in which the commission anticipates spending any money from the
account, the commission shall submit to the executive department during the
budget preparation period prior to the Legislature convening before that fiscal
year for inclusion in the executive budget document and budget bill, the
recommended expenditures, as well as requests of appropriations for the purpose
of administration, promotion, education, capital improvement and greyhound
adoption programs to include spaying and neutering. The commission shall make
an annual report to the Legislature on the status of the administration,
promotion, education, capital improvement and greyhound adoption programs to
include spaying and neutering account, including the previous year's
expenditures and projected expenditures for the next year.
The Racing
Commission, for the fiscal year 1994 only, may expend up to $35,000 from the
West Virginia Greyhound Breeding Development Fund to accomplish the purposes of
this section without strictly following the requirements in the previous
paragraph.
(e) All daily license and
pari-mutuel pools tax payments required under the provisions of this section
shall be made to the Racing Commission or its agent after the last race of each
day of each horse or dog race meeting, and the pari-mutuel pools tax payments
shall be made from all contributions to all pari-mutuel pools to each and every
race of the day.
(f) Every
association or licensee subject to the provisions of this article, including
the changed provisions of sections nine and ten of this article, shall annually
submit to the Racing Commission and the Legislature financial statements,
including a balance sheet, income statement, statement of change in financial
position and an audit of any electronic data system used for pari-mutuel
tickets and betting, prepared in accordance with generally accepted auditing
standards, as certified by an experienced public accountant or a certified
public accountant.
(g) The provisions of this section relating to
the Greyhound Breeding Development Fund are hereby altered and amended by the
provisions of section ten-a of this article as enacted during the 2017
legislative session.
§19-23-10a. Transfer
of present and future moneys required to be deposited in West Virginia
Greyhound Breeding Development Fund.
Notwithstanding any provision of this code to the contrary,
effective July 1, 2017, any money in the “West Virginia Racing
Commission-Special Account-West
Virginia Greyhound Breeding Development Fund” created in section ten of this
article shall be transferred by the racing commission to the State Excess
Lottery Revenue Fund created in section eighteen-a, article twenty-two, chapter
twenty-nine of this code. Effective July
1, 2017, any money directed to be deposited into the Greyhound Breeding
Development Fund under code sections ten, twelve-b, thirteen and thirteen-c of
article twenty-three, chapter nineteen of this code; section eighteen-a,
article twenty-two, chapter twenty-nine of this code; sections ten and ten-b,
article twenty-two-a, chapter twenty-nine of this code; and section
twenty-seven, article twenty-two-c, chapter twenty-nine of this code shall
instead be deposited into the Excess Lottery Revenue Fund for appropriation by
the Legislature.
§19-23-12b. Televised
racing days; merging of pari-mutuel wagering pools.
(a) For the purposes of
this section:
(1) "Televised racing
day" means a calendar day, assigned by the commission, at a licensed
racetrack on which pari-mutuel betting is conducted on horse or dog races run
at other racetracks in this state or at racetracks outside of this state which
are broadcast by television at a licensed racetrack and which day or days have
had the prior written approval of the representative of the majority of the
owners and trainers who hold permits required by section two of this article;
and
(2) "Host Racing Association" means any person who, pursuant to a
license or other permission granted by the host governmental entity, conducts
the horse or dog race upon which wagers are placed.
(b) A licensee conducting not less than two hundred twenty
live racing dates for each horse or dog race meeting may, with the prior
approval of the State Racing Commission, contract with any legal wagering
entity in this state or in any other governmental jurisdiction to receive
telecasts and accept wagers on races conducted by the legal wagering entity: Provided,
That at those thoroughbred racetracks the licensee, in applying for racing
dates, shall apply for not less than two hundred ten live racing dates for each
horse race meeting: Provided, however, That at those thoroughbred
racetracks that have participated in the West Virginia Thoroughbred Development
Fund for a period of more than four consecutive calendar years prior to
December 31, 1992, the licensee may apply for not less than one hundred
fifty-nine live racing dates during the calendar year 1997. If, thereafter, for
reasons beyond the licensee's control, related to adverse weather conditions,
unforeseen casualty occurrences or a shortage of thoroughbred horses eligible
to compete for purses, the licensee concludes that this number of racing days
cannot be attained, the licensee may file a request with the Racing Commission
to reduce the authorized live racing days. Upon receipt of the request the
Racing Commission shall within seventy-two hours of the receipt of the request
notify the licensee and the representative of a majority of the owners and
trainers at the requesting track and the representative of the majority of the
mutuel clerks at the requesting track that such request has been received and
that if no objection to the request is received within ten days of the
notification the request will be approved: Provided further, That the commission
shall give consideration to whether there existed available unscheduled
potential live racing dates following the adverse weather or casualty and prior
to the end of the race meeting which could be used as new live racing dates in
order to maintain the full live racing schedule previously approved by the
Racing Commission. If an objection is received by the commission within the
time limits, the commission shall, within thirty days of receipt of such
objection, set a hearing on the question of reducing racing days, which hearing
shall be conducted at a convenient place in the county in which the requesting
racetrack is located. The commission shall hear from all parties concerned and,
based upon testimony and documentary evidence presented at the hearing, shall
determine the required number of live racing days: And provided further, That the commission shall not reduce the number of live racing
days below one hundred eighty-five days for a horse race meeting unless the
licensee requesting such reduction has: (i) Filed with the commission a current
financial statement, which shall be subject to independent audit; and (ii) met
the burden of proving that just cause exists for such requested reduction in
live racing days. The telecasts may be received and wagers accepted at any
location authorized by the provisions of section twelve-a of this article. The
contract must receive the approval of the representative of the majority of the
owners and trainers who hold permits required by section two of this article at
the receiving thoroughbred racetrack.
(c) The commission may
allow the licensee to commingle its wagering pools with the wagering pools of
the Host Racing Association. If the pools
are commingled, the wagering at the licensee's racetrack must be on tabulating
equipment capable of issuing pari-mutuel tickets and be electronically linked
with the equipment at the sending racetrack. Subject to the approval of the
commission, the types of betting, licensee commissions and distribution of
winnings on pari-mutuel pools of the sending licensee racetrack are those in
effect at the licensee racetrack. Breakage for pari-mutuel pools on a televised
racing day must be calculated in accordance with the law or rules governing the
sending racetrack and must be distributed in a manner agreed to between the
licensee and the sending racetrack. For the televised racing services it
provides, the Host Racing Association
shall receive a fee to be paid by the receiving licensee racetrack which shall
be in an amount to be agreed upon by the receiving licensee racetrack and the Host
Racing Association.
(d) The commission may
assign televised racing days at any time. When a televised racing day is
assigned, the commission shall assign either a steward or an Auditor to preside over the televised races at the
licensee racetrack.
(e) (1) From the licensee
commissions authorized by subsection (c) of this section, the licensee shall
pay one tenth of one percent of each commission into the General Fund of the
county, in which the racetrack is located and at which the wagering occurred
and there is imposed and the licensee shall pay, for each televised racing day
on which the total pari-mutuel pool exceeds $100,000, the greater of either:
(i) The total of the daily license tax and the pari-mutuel pools tax required
by section ten of this article; or (ii) a daily license tax of $1,250. For each
televised racing day on which the total pari-mutuel pool is $100,000, the
licensee shall pay a daily license tax of $500 plus an additional license tax
of $100 for each $10,000, or part thereof, that the pari-mutuel pool exceeds
$50,000, but does not exceed $100,000. The calculation of the total pari-mutuel
pool for purposes of this subsection shall include only one half of all wagers
placed at a licensed racetrack in this state on televised races conducted at
another licensed racetrack within this state. Payments of the tax imposed by
this section are subject to the requirements of subsection (e), section ten of
this article.
(2) From the licensee commissions
authorized by subsection (c) of this section, after payments are made in
accordance with the provisions of subdivision (1) of this subsection, the
licensee shall pay, for each televised racing day, one fourth of one percent of
the total pari-mutuel pools for and on behalf of all employees of the licensed
racing association by making a deposit into a special fund to be established by
the Racing Commission and to be used for payments into the pension plan for all
employees of the licensed racing association.
(3) From the licensee
commissions authorized by subsection (c) of this section, after payments are
made in accordance with the provisions of subdivisions (1) and (2) of this
subsection, thoroughbred licensees shall pay, one-half percent of net simulcast
income and for each televised racing day on or after July 1, 1997, an
additional five and one-half percent of net simulcast income into the West
Virginia Thoroughbred Development Fund established by the Racing Commission
according to section thirteen-b of this article: Provided, That no
licensee qualifying for the alternate tax provisions of subsection (b), section
ten of this article shall be required to make the payments unless the licensee
has participated in the West Virginia Thoroughbred Development Fund for a
period of more than four consecutive calendar years prior to December 31, 1992.
For the purposes of this section, the term "net simulcast income"
means the total commission deducted each day by the licensee from the
pari-mutuel pools on simulcast horse or dog races, less direct simulcast
expenses, including, but not limited to, the cost of simulcast signals,
telecommunication costs and decoder costs.
(f) After deducting the tax and other payments required by
subsection (e) of this section, the amount required to be paid under the terms
of the contract with the Host Racing Association
and the cost of transmission, the Horse Racing Association
shall make a deposit equal to fifty percent of the remainder into the purse fund
established under the provisions of subdivision (1), subsection (b), section
nine of this article. After deducting the
tax and other payments required by subsection (e) of this section, dog
racetracks shall pay an amount equal to two tenths of one percent of the daily
simulcast pari-mutuel pool to the "West Virginia Racing Commission Special
Account-West Virginia Greyhound Breeding
Development Fund".
(g) The provisions of the
"Federal Interstate Horseracing Act
of 1978", also known as Public Law 95-515, Section 3001-3007 of Title 15,
U.S. Code, as amended, controls in determining the intent of this section.
(h) The provisions of
this section relating to the Greyhound Breeding Development Fund are hereby
altered and amended by the provisions of section ten-a of this article as
enacted during the 2017 legislative session.
§19-23-13. Disposition of funds for payment of
outstanding and unredeemed pari-mutuel tickets; publication of notice;
irredeemable tickets; payment of past obligations.
(a) All moneys held by any
licensee for the payment of outstanding and unredeemed pari-mutuel tickets, if
not claimed within ninety days after the close of a horse or dog race meeting
or the televised racing day, as the case may be, in connection with which the
tickets were issued, shall be turned over by the licensee to the Racing
Commission within fifteen days after the expiration of the ninety-day period,
and the licensee shall give any information required by the Racing Commission
concerning the outstanding and unredeemed tickets. The moneys shall be deposited by the Racing
Commission in a banking institution of its choice in a special account to be
known as "West Virginia Racing Commission Special Account - Unredeemed
Pari-Mutuel Tickets." Notice of the
amount, date and place of each deposit shall be given by the Racing Commission,
in writing, to the State Treasurer. The Racing
Commission shall then cause to be published a notice to the holders of the
outstanding and unredeemed pari-mutuel tickets, notifying them to present their
unredeemed tickets for payment at the principal office of the Racing Commission
within ninety days from the date of the publication of the notice. The notice shall be published within fifteen
days following the receipt of the outstanding and unredeemed pari-mutuel ticket
moneys by the commission from the licensee as a Class I legal advertisement in
compliance with the provisions of article three, chapter fifty-nine of this
code, and the publication area for the publication shall be the county in which
the horse or dog race meeting was held and the county in which the televised
racing day wagering was conducted in this state.
(b) Any outstanding and
unredeemed pari-mutuel tickets that are not presented for payment within ninety
days from the date of the publication of the notice are thereafter
irredeemable, and the moneys theretofore held for the redemption of the
pari-mutuel tickets shall become the property of the Racing Commission and
shall be expended as provided in subsections (c) and (d) of this section. The Racing Commission shall maintain separate
accounts for each licensee and shall record in each separate account the moneys
turned over by the licensee and the amount expended at the licensee's track for
the purposes set forth in this subsection.
(c) In the fiscal year
beginning on July 1, 2010, the Racing Commission shall keep separate the
unredeemed pari-mutuel tickets received from each of the two licensee horse
racetracks.
(1) The unredeemed
pari-mutuel tickets attributable to each licensee horse racetrack together with
funds distributed pursuant to section eighteen-a, article twenty-two, chapter
twenty-nine of this code shall be used for claims received pursuant to this
subsection by the Racing Commission each calendar quarter: Provided, That the first distribution after the effective date of
amendments to this section made during the 2010 regular legislative session
shall not occur until February 2011, and then each calendar quarter
thereafter. Any claims made
pursuant to this subsection must be submitted to the Racing Commission no later
than fifteen days after the race where the funds are awarded. The funds in the two special accounts -
unredeemed pari-mutuel tickets shall be distributed based on claims received
from each horse racetrack as follows:
(A) To the owner of the
winning horse in any horse race at a horse race meeting held or conducted by
any licensee: Provided, That the owner of the horse is at the time of the horse
race a bona fide resident of this state, a sum equal to ten percent of the
purse won by the horse at that race: Provided, however, That in the event
there are more than ten races in any performance, the award to the resident
owner of the winning horse will be that fractional share of the purse with a
numerator of one and a denominator representing the number of races on the day
of the performance. The commission may
require proof that the owner was, at the time of the race, a bona fide resident
of this state. Upon proof by the owner
that he or she filed a personal income tax return in this state for the
previous two years and that he or she owned real or personal property in this
state and paid taxes in this state on real or personal property for the
previous two years, he or she shall be presumed to be a bona fide resident of
this state; and
(B) To the breeder
(that is, the owner of the mare) of the winning horse in any horse race at a
horse race meeting held or conducted by any licensee: Provided,
That the mare foaled in this state, a sum equal to ten percent of the purse won
by the horse: Provided, however, That
in the event there are more than ten races in any performance, the award to the
breeder will be that fractional share of the purse with a numerator of one and
a denominator representing the number of races on the day of the performance;
and
(C) To the owner of
the stallion which sired the winning horse in any horse race at a horse race
meeting held or conducted by any licensee:
Provided, That the mare which foaled the winning horse was served by a
stallion standing and registered in this state, a sum equal to ten percent of
the purse won by the horse: Provided, however, That in the event
there are more than ten races in any performance, the award to the owner of the
stallion will be percentage of the purse based upon the fractional share
represented by the number of races on the day of the performance.
(2) If in any calendar
quarter insufficient funds are available in each licensee horse racetrack’s
special account - unredeemed pari-mutuel tickets administered by the Racing
Commission for payments pursuant to subdivision (1), payments shall be made on
a pro rata basis pursuant to paragraphs (A), (B) and (C) of subdivision (1) of this subsection
of the claims submitted from races won at each horse racetrack. Once payments on each claim are made, whether
in full or on a pro rata basis, no further obligation for payment is created by
this subdivision. Claims received after
the deadline are not valid.
(3) If after paying
any claims pursuant to this subsection and funds remain in the accounts, those
funds shall carry over to the next calendar quarter. If in any quarter the surplus in either
account reaches a balance of $1 million, then that surplus balance shall be
placed in to the regular purse fund of that licensee horse racetrack whose
unredeemed pari-mutuel account achieves the surplus.
(d) Any unredeemed
pari-mutuel tickets received from licensee dog racetracks shall be combined
into a single balance and distributed quarterly to the West Virginia Racing
Commission special account - West Virginia Greyhound Breeding Development Fund. The deposit made pursuant to this subsection
does not create a continuing obligation of payment except to the extent that
there are unredeemed pari-mutuel tickets from the licensee dog racetracks.
(e) The amendments to
this section made during the 2010 regular legislative session shall become
effective July 1, 2010.
(f) The Racing
Commission shall satisfy obligations of the prior enactment of this section for
all claims received on purses won on or before June 30, 2010. Claimants must submit all claims on or before
July 15, 2010, for verification by the Racing Commission. Claims received after July 15, 2010 are not
valid.
(1) A transfer of
$2,500,000 from the State Excess Lottery Revenue Fund available on the last day
of the fiscal year which began July 1, 2009 shall be made to the nonappropriated
fund with the State Treasurer known as the Unredeemed Pari-Mutuel Tickets
Fund. The Racing Commission shall also
transfer to the account with the State Treasurer moneys from the Racing
Commission special accounts - unredeemed pari-mutuel tickets for deposits
received in each of those accounts that have been credited with unredeemed
pari-mutuel tickets for races completed at any licensee racetrack as of June
30, 2010, and any other moneys appropriated by the Legislature. Unredeemed pari-mutuel tickets for races
completed after June 30, 2010 must remain in the special accounts - unredeemed
pari-mutuel tickets to satisfy future payments pursuant to this section.
(2) The Racing
Commission is authorized to pay claims received for races completed on or
before June 30, 2010, without regard to date of deposit or date of claim. Claims shall be paid in date order, with the
oldest claims being paid first, until all claims have been satisfied. All payments made pursuant to this subsection for
claims received on purses won on or before June 30, 2010, shall extinguish any
further obligation by the state with respect to those claims.
(g) The commission
shall submit to the Legislative Auditor a quarterly report and accounting of the
income and expenditures in the special account created by this section known as
the West Virginia Racing Commission special account - unredeemed pari-mutuel
tickets.
(h) Nothing contained
in this article shall prohibit one person from qualifying for all or more than
one of the aforesaid awards or for awards under section thirteen-b of this
article.
(i) The cost of
publication of the notice provided for in this section shall be paid from the
funds in the hands of the State Treasurer collected from the pari-mutuel pools'
tax provided for in section ten of this article, when not otherwise provided in
the budget; but no such costs shall be paid unless an itemized account thereof,
under oath, be first filed with the State Auditor.
(j) The Racing
Commission is authorized to promulgate emergency rules, prior to September 1,
2010, to incorporate the revisions to this article enacted during the 2010
regular legislative session.
(k) The provisions of this section relating to the
Greyhound Breeding Development Fund are hereby altered and amended by the
provisions of section ten-a of this article as enacted during the 2017
legislative session.
§19-23-13c. Expenditure of racetrack video lottery
distribution.
(a) Funds received by the
Racing Commission pursuant to subdivision (6), subsection (c), section ten,
article twenty-two-a, chapter twenty-nine of this code, and subdivision (5),
subsection (a), section ten-b, article twenty-two-a, chapter twenty-nine of
this code, after the effective date of this section together with the balance
in the bank account previously established by the commission to receive those
funds shall be deposited in a banking institution of its choice in a special
account to be known as "West Virginia Racing Commission Racetrack Video
Lottery Account". Notice of the
amount, date and place of each deposit shall be given by the Racing Commission,
in writing, to the State Treasurer.
(b) Funds in this account
shall be allocated and expended as follows:
(1) For each fiscal year,
the first $800,000 deposited in the separate account plus the amount then
remaining of the June 30, 1997, balance in the separate account previously
established for the West Virginia breeders classic under section thirteen of
this article, shall be used by the commission for promotional activities,
advertising, administrative costs and purses for the West Virginia Thoroughbred
Breeders Classic, which shall give equal consideration to all horses qualifying
under the West Virginia breeders program for each stake race, based solely on
the horses' sex, age and earnings.
(2) For each fiscal year,
the next $200,000 deposited into the separate account shall be used by the commission
for promotional activities and purses for open stake races for a race event to
be known as the West Virginia Derby to be held at a thoroughbred racetrack
which does not participate in the West Virginia Breeders Classic.
(3) For each fiscal year,
once the amounts provided in subdivisions (1) and (2) of this subsection have
been deposited into separate bank accounts for use in connection with the West
Virginia Thoroughbred Breeders Classics and the West Virginia Derby, the commission
shall return to each racetrack all additional amounts deposited which originate
during that fiscal year from each respective racetrack pursuant to subdivision
(6), subsection (c), section ten, article twenty-two-a, chapter twenty-nine of
this code, which returned excess funds shall be used as follows:
(A) For each dog racetrack, one half of the returned
excess funds shall be used for capital improvements at the racetrack and one
half of the returned excess funds shall be deposited into the West Virginia
Racing Commission Special Account - West
Virginia Greyhound Breeding Development Fund.
(B) At those thoroughbred racetracks that have participated
in the West Virginia Thoroughbred Development Fund for a period of more than
four consecutive calendar years prior to December 31, 1992, one half of the
returned excess funds shall be used for capital improvements at the licensee's racetrack and one half of the returned excess funds
shall be equally divided between the West Virginia Thoroughbred Breeders
Classic and the West Virginia Thoroughbred Development Fund.
(C) At those thoroughbred horse racetracks which do not
participate in the West Virginia Breeders Classic, one half of the returned
excess funds shall be used for capital improvements at the licensee's racetrack and one half of the returned excess funds
shall be used for purses for the open stakes race event known as the West
Virginia Derby.
(c) All expenditures that are funded under this section
must be approved in writing by the West Virginia Racing Commission before the
funds are expended for any of the purposes authorized by this section.
(d) The provisions of
this section relating to the Greyhound Breeding Development Fund are hereby
altered and amended by the provisions of section ten-a of this article as
enacted during the 2017 legislative session.
CHAPTER 29. MISCELLANEOUS
BOARDS AND
OFFICERS.
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) $65 million 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) $10 million
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) $19 million 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)
$20 million 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) $40 million 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) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $5 million into the State
Park Improvement Fund for Park Improvements. For the fiscal year beginning July
1, 2003, the commission shall deposit: (1) $65 million into the General Purpose
Account to be expended pursuant to
appropriation of the Legislature; (2) $17 million 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) $19 million 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) $20 million
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)
$40 million 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) $10 million into the Higher Education
Improvement Fund for Higher Education; and (7) $7 million 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) $65 million into the
General Purpose Account to be expended
pursuant to appropriation of the Legislature; (2) $27 million 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) $19 million 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) $19 million
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) $40 million 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) $10 million into the Higher Education Improvement Fund for Higher
Education; and (7) $5 million 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) $65 million into the General Purpose Account to be expended pursuant to appropriation of the
Legislature; (2) $29 million 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) $19 million
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) $19 million into the Excess Lottery School
Building Debt Service Fund created in section six, article nine-d, chapter
eighteen of this code; (5) $40 million 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) $10
million into the Higher Education Improvement Fund for Higher Education; and
(7) $5 million 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
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 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 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 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) 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 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-mutuel 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.
(m) The provisions of
this section relating to the Greyhound Breeding Development Fund are hereby
altered and amended by the provisions of section ten-a, article twenty-three,
chapter nineteen of this code as enacted during the 2017 legislative session.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-7. License and permit qualification individual
qualifications; applicant required to furnish information; waiver of liability;
oath or affirmation; duty to provide accurate and material information.
(a) No video lottery license or permit may be granted unless
the commission has determined that the applicant satisfies all of the following
qualifications:
(1) An applicant for a
video lottery license or its predecessor in interest must, prior to
January 1, 1994, have held a valid racing license granted by the West
Virginia Racing Commission under provisions of article twenty-three, chapter nineteen
of this code; Provided,
That, an applicant shall not be required to hold a current racing license to
renew its video lottery license.
(2) An applicant must be a
person of good character and integrity.
(3) An applicant must be a person whose background, including
criminal record, reputation and associations, does not pose a threat to the
security and integrity of the lottery or to the public interest of the state. All new applicants for licenses and permits issued by the
commission shall furnish fingerprints for a national criminal records check by
the Criminal Identification Bureau of the West Virginia State Police and the Federal
Bureau of Investigation. The fingerprints shall be furnished by all persons required
to be named in the application and shall be accompanied by a signed
authorization for the release of information by the Criminal Investigation Bureau
and the Federal Bureau of Investigation. The commission may require any
applicant seeking the renewal of a license or permit to furnish fingerprints
for a national criminal records check by the Criminal Identification Bureau of
the West Virginia State Police and the Federal Bureau of Investigation. A person who has been convicted of any violation of article
twenty-two of this chapter or of this article or of any crime related to theft,
bribery, gambling or involving moral turpitude is not eligible for any license
or permit. The commission shall revoke the license or permit of any person who
is convicted of any such crime after a license or permit is granted.
(4) An applicant must be a person who demonstrates the business
ability and experience necessary to establish, operate and maintain the
business for which a video lottery license or permit application is made.
(5) An applicant
must be a person who has secured adequate financing for the business for which
a video lottery license or permit application is made. The commission shall
determine whether financing is from a source which meets the qualifications of
this section and is adequate to support the successful performance of the
duties and responsibilities of the licensed racetrack or permit holder. An applicant for a video lottery license shall disclose all
financing or refinancing arrangements for the purchase, lease or other
acquisition of video lottery terminals and associated equipment in the degree
of detail requested by the commission. A licensed
racetrack shall request commission approval of any change in financing or lease
arrangements at least thirty days before the effective date of the change.
(6) A racetrack applying
for a video lottery license or a license renewal must present to the commission
evidence of the existence of an agreement, regarding the proceeds from video
lottery terminals, between the applicant and the representative of a majority of
the horse owners and trainers, the representative of a majority of the
pari-mutuel clerks and the representative of a majority of the breeders or the
representative of a majority of the kennel owners for the applicable racetrack
who hold permits required by section two, article twenty-three, chapter
nineteen of this code
(7) (6) A racetrack applying for a video lottery license or a license
renewal must file with the commission a copy of any current or proposed
agreement between the applicant and any manufacturer for the sale, lease or
other assignment to the racetrack of video lottery terminals, the electronic
computer components of the terminals, the random number generator of the
terminals, or the cabinet in which it is housed. Once filed with the commission,
the agreement is a public document subject to the provisions of article one,
chapter twenty-nine-b of this code.
(b) No video
lottery license or permit may be granted to an applicant until the commission
determines that each person who has control of the applicant meets all
applicable qualifications of subsection (a) of this section. The following
persons are considered to have control of an applicant:
(1) Each
person associated with a corporate applicant, including any corporate holding
company, parent company or subsidiary company of the applicant, but not
including a bank or other licensed lending institution which holds a mortgage
or other lien acquired in the ordinary course of business, who has the ability
to control the activities of the corporate applicant or elect a majority of the
board of directors of that corporation.
(2) Each
person associated with a noncorporate applicant who directly or indirectly
holds any beneficial or proprietary interest in the applicant or who the
commission determines to have the ability to control the applicant.
(3) Key
personnel of an applicant, including any executive, employee or agent, having
the power to exercise significant influence over decisions concerning any part
of the applicant's business operation.
(c) Applicants must furnish all information, including financial
data and documents, certifications, consents, waivers, individual history forms
and other materials requested by the commission for purposes of determining
qualifications for a license or permit. No video lottery license or permit may
be granted to an applicant who fails to provide information and documentation
requested by the commission. The burden of proving qualification for any video
lottery license or permit is on the applicant.
(d) Each
applicant bears all risks of adverse public notice, embarrassment, criticism,
damages or financial loss which may result from any disclosure or publication
of any material or information obtained by the commission pursuant to action on
an application. The applicant shall, as a part of its application, expressly
waive any and all claims against the commission, the State of West Virginia and
the employees of either for damages as a result of any background
investigation, disclosure or publication relating to an application for a video
lottery license or permit.
(e) All application, registration and disclosure forms and other
documents submitted to the commission by or on behalf of the applicant for
purposes of determining qualification for a video lottery license or permit
shall be sworn to or affirmed before an officer qualified to administer oaths.
(f) An applicant who knowingly fails to reveal any fact material
to qualification or who knowingly submits false or misleading material
information is ineligible for a video lottery license or permit.
§29-22A-10. Accounting
and reporting; commission to provide communications protocol data; distribution
of net terminal income; remittance through electronic transfer of funds;
establishment of accounts and nonpayment penalties; commission control of
accounting for net terminal income; settlement of accounts; manual reporting
and payment may be required; request for reports; examination of accounts and
records.
(a) The commission shall
provide to manufacturers, or applicants applying for a manufacturer's permit,
the protocol documentation data necessary to enable the respective
manufacturer's video lottery terminals to communicate with the commission's
central computer for transmitting auditing program information and for
activation and disabling of video lottery terminals.
(b) The gross terminal
income of a licensed racetrack shall be remitted to the commission through the
electronic transfer of funds. Licensed racetracks shall furnish to the
commission all information and bank authorizations required to facilitate the
timely transfer of moneys to the commission. Licensed racetracks must provide
the commission thirty days' advance notice of any proposed account changes in
order to assure the uninterrupted electronic transfer of funds. From the gross
terminal income remitted by the licensee to the commission:
(1) The commission shall
deduct an amount sufficient to reimburse the commission for its actual costs
and expenses incurred in administering racetrack video lottery at the licensed
racetrack and the resulting amount after the deduction is the net terminal
income. The amount deducted for administrative costs and expenses of the
commission may not exceed four percent of gross terminal income: Provided,
That any amounts deducted by the commission for its actual costs and expenses
that exceeds its actual costs and expenses shall be deposited into the state Lottery
Fund. For the fiscal years ending June 30, 2011 through June 30, 2020, the term
"actual costs and expenses" may include transfers of up to $10 million in surplus
allocations for each fiscal year, as calculated by the commission when it has
closed its books for the fiscal year, to the Licensed Racetrack Modernization
Fund created by subdivision (2), subsection (b) of this section. For all fiscal
years beginning on or after July 1, 2001, the commission shall not receive an
amount of gross terminal income in excess of the amount of gross terminal
income received during the fiscal year ending on June 30, 2001, but four
percent of any amount of gross terminal income received in excess of the amount
of gross terminal income received during the fiscal year ending on June 30,
2001, shall be deposited into the fund established in section eighteen-a,
article twenty-two of this chapter; and
(2) A Licensed Racetrack Modernization Fund is created
within the Lottery Fund. For all fiscal years beginning on or after July 1,
2011, and ending with the fiscal year beginning July 1, 2020, the commission
shall deposit such amounts as are available according to subdivision (1),
subsection (b) of this section into a separate facility modernization account
maintained within the Licensed Racetrack Modernization Fund for each racetrack.
Each racetrack's share of each year's deposit shall be calculated in the same ratio as
each racetrack's apportioned contribution
to the four percent administrative costs and expenses allowance provided for in
subdivision (1), subsection (b) of this section for that year. For each two
dollars expended by a licensed racetrack for facility modernization
improvements at the racetrack, having a useful life of three or more years and
placed in service after July 1, 2011, the licensed racetrack shall receive $1
in recoupment from its facility modernization account. If the licensed
racetrack's facility modernization
account contains a balance in any fiscal year, the unexpended balance from that
fiscal year will be available for matching for one additional fiscal year,
after which time, the remaining unused balance carried forward shall revert to
the Lottery Fund. For purposes of this section, the term "facility modernization improvements" includes acquisitions of new and unused video lottery
terminals and related equipment. Video lottery terminals financed through the
recoupment provided in this subdivision must be retained by the licensee in its
West Virginia licensed location for a period of not less than five years from
the date of initial installation.
(c) The amount resulting
after the deductions required by subsection (b) of this section constitutes net
terminal income that shall be divided as set out in this subsection. For all
fiscal years beginning on or after July 1, 2001, any amount of net terminal
income received in excess of the amount of net terminal income received during
the fiscal year ending on June 30, 2001, shall be divided as set out in section
ten-b of this article. The licensed racetrack's share is in lieu of all lottery
agent commissions and is considered to cover all costs and expenses required to
be expended by the licensed racetrack in connection with video lottery
operations. The division shall be made as follows:
(1) The commission shall
receive thirty percent of net terminal income, which shall be paid into the
state Lottery Fund as provided in section ten-a of this article;
(2) Until July 1, 2005,
fourteen percent of net terminal income at a licensed racetrack shall be
deposited in the special fund established by the licensee, and used for payment
of regular purses in addition to other amounts provided for in article twenty-three,
chapter nineteen of this code, on and after July 1, 2005, the rate shall be
seven percent of net terminal income;
(3) The county where the
video lottery terminals are located shall receive two percent of the net
terminal income: Provided, That:
(A) Beginning July 1, 1999,
and thereafter, any amount in excess of the two percent received during the
fiscal year 1999 by a county in which a racetrack is located that has
participated in the West Virginia Thoroughbred Development Fund since on or
before January 1, 1999, shall be divided as follows:
(i) The county shall
receive fifty percent of the excess amount; and
(ii) The municipalities of
the county shall receive fifty percent of the excess amount, said fifty percent
to be divided among the municipalities on a per capita basis as determined by
the most recent decennial United States census of population; and
(B) Beginning July 1, 1999,
and thereafter, any amount in excess of the two percent received during the
fiscal year 1999 by a county in which a racetrack other than a racetrack
described in paragraph (A) of this proviso is located and where the racetrack
has been located in a municipality within the county since on or before January
1, 1999, shall be divided, if applicable, as follows:
(i) The county shall
receive fifty percent of the excess amount; and
(ii) The municipality shall
receive fifty percent of the excess amount; and
(C) This proviso shall not
affect the amount to be received under this subdivision by any other county
other than a county described in paragraph (A) or (B) of this proviso;
(4) One percent of net
terminal income shall be paid for and on behalf of all employees of the Licensed
Racing Association by making a deposit into a special fund to be established by
the Racing Commission to be used for payment into the pension plan for all
employees of the Licensed Racing Association;
(5) The West Virginia
Thoroughbred Development Fund created under section thirteen-b, article twenty-three,
chapter nineteen of this code and the West Virginia Greyhound Breeding
Development Fund created under section ten of said article shall receive an
equal share of a total of not less than one and one-half percent of the net
terminal income;
(6) The West Virginia
Racing Commission shall receive one percent of the net terminal income which
shall be deposited and used as provided in section thirteen-c, article twenty-three,
chapter nineteen of this code.
(7) A licensee shall
receive forty-six and one-half percent of net terminal income.
(8)(A) The Tourism
Promotion Fund established in section twelve, article two, chapter five-b of
this code shall receive three percent of the net terminal income: Provided,
That for the fiscal year beginning July 1, 2003, the tourism commission shall
transfer from the Tourism Promotion Fund $5 million of the three percent of the
net terminal income described in this section and section ten-b of this article
into the fund administered by the West Virginia Economic Development Authority
pursuant to section seven, article fifteen, chapter thirty-one of this code, $5
million into the Capitol Renovation and Improvement Fund administered by the Department
of Administration pursuant to section six, article four, chapter five-a of this
code and $5 million into the Tax Reduction and Federal Funding Increased
Compliance Fund; and
(B) Notwithstanding any
provision of paragraph (A) of this subdivision to the contrary, for each fiscal
year beginning after June 30, 2004, this three percent of net terminal income
and the three percent of net terminal income described in paragraph (B),
subdivision (8), subsection (a), section ten-b of this article shall be distributed
as provided in this paragraph as follows:
(i) 1.375 percent of the
total amount of net terminal income described in this section and in section
ten-b of this article shall be deposited into the Tourism Promotion Fund
created under section twelve, article two, chapter five-b of this code;
(ii) 0.375 percent of the
total amount of net terminal income described in this section and in section
ten-b of this article shall be deposited into the Development Office Promotion
Fund created under section three-b, article two, chapter five-b of this code;
(iii) 0.5 percent of the
total amount of net terminal income described in this section and in section
ten-b of this article shall be deposited into the Research Challenge Fund
created under section ten, article one-b, chapter eighteen-b of this code;
(iv) 0.6875 percent of the
total amount of net terminal income described in this section and in section
ten-b of this article shall be deposited into the Capitol Renovation and
Improvement Fund administered by the Department of Administration pursuant to
section six, article four, chapter five-a of this code; and
(v) 0.0625 percent of the
total amount of net terminal income described in this section and in section
ten-b of this article shall be deposited into the 2004 Capitol Complex Parking
Garage Fund administered by the Department of Administration pursuant to
section five-a, article four, chapter five-a of this code;
(9)(A) On and after July 1,
2005, seven percent of net terminal income shall be deposited into the Workers'
Compensation Debt Reduction Fund created in section five, article two-d,
chapter twenty-three of this code: Provided, That in any fiscal year
when the amount of money generated by this subdivision totals $11 million, all
subsequent distributions under this subdivision shall be deposited in the
special fund established by the licensee and used for the payment of regular
purses in addition to the other amounts provided in article twenty-three,
chapter nineteen of this code;
(B) The deposit of the
seven percent of net terminal income into the Worker's Compensation Debt
Reduction Fund pursuant to this subdivision shall expire and not be imposed
with respect to these funds and shall be deposited in the special fund
established by the licensee and used for payment of regular purses in addition
to the other amounts provided in article twenty-three, chapter nineteen of this
code, on and after the first day of the month following the month in which the
Governor certifies to the Legislature that: (i) The revenue bonds issued
pursuant to article two-d, chapter twenty-three of this code, have been retired
or payment of the debt service provided for; and (ii) that an independent
certified actuary has determined that the unfunded liability of the old fund,
as defined in chapter twenty-three of this code, has been paid or provided for
in its entirety; and
(10) The remaining one
percent of net terminal income shall be deposited as follows:
(A) For the fiscal year
beginning July 1, 2003, the veterans memorial program shall receive one percent
of the net terminal income until sufficient moneys have been received to
complete the veterans memorial on the grounds of the state Capitol Complex in
Charleston, West Virginia. The moneys shall be deposited in the State Treasury
in the Division of Culture and History Special Fund created under section
three, article one-i, chapter twenty-nine of this code: Provided, That
only after sufficient moneys have been deposited in the fund to complete the
veterans memorial and to pay in full the annual bonded indebtedness on the
veterans memorial, not more than $20,000 of the one percent of net terminal
income provided in this subdivision shall be deposited into a Special Revenue Fund
in the State Treasury, to be known as the "John F. 'Jack' Bennett
Fund". The moneys in this fund shall be expended by the Division of
Veterans Affairs to provide for the placement of markers for the graves of
veterans in perpetual cemeteries in this state. The Division of Veterans
Affairs shall promulgate legislative rules pursuant to the provisions of
article three, chapter twenty-nine-a of this code specifying the manner in
which the funds are spent, determine the ability of the surviving spouse to pay
for the placement of the marker and setting forth the standards to be used to
determine the priority in which the veterans grave markers will be placed in
the event that there are not sufficient funds to complete the placement of
veterans grave markers in any one year, or at all. Upon payment in full of the
bonded indebtedness on the veterans memorial, $100,000 of the one percent of
net terminal income provided in this subdivision shall be deposited in the
special fund in the Division of Culture and History created under section
three, article one-i, chapter twenty-nine of this code and be expended by the
Division of Culture and History to establish a West Virginia veterans memorial
archives within the Cultural Center to serve as a repository for the documents
and records pertaining to the veterans memorial, to restore and maintain the
monuments and memorial on the capitol grounds: Provided, however, That
$500,000 of the one percent of net terminal income shall be deposited in the
State Treasury in a special fund of the Department of Administration, created
under section five, article four, chapter five-a of this code, to be used for
construction and maintenance of a parking garage on the State Capitol Complex;
and the remainder of the one percent of net terminal income shall be deposited
in equal amounts in the Capitol Dome and Improvements Fund created under
section two, article four, chapter five-a of this code and Cultural Facilities
and Capitol Resources Matching Grant Program Fund created under section three,
article one of this chapter.
(B) For each fiscal year
beginning after June 30, 2004:
(i) Five hundred thousand
dollars of the one percent of net terminal income shall be deposited in the
State Treasury in a special fund of the Department of Administration, created
under section five, article four, chapter five-a of this code, to be used for
construction and maintenance of a parking garage on the State Capitol Complex;
and
(ii) The remainder of the
one percent of net terminal income and all of the one percent of net terminal
income described in paragraph (B), subdivision (9), subsection (a), section ten-b
of this article shall be distributed as follows: The net terminal income shall
be deposited in equal amounts into the Capitol Dome and Capitol Improvements
Fund created under section two, article four, chapter five-a of this code and
the Cultural Facilities and Capitol Resources Matching Grant Program Fund
created under section three, article one, chapter twenty-nine of this code
until a total of $1,500,000 is deposited into the Cultural Facilities and
Capitol Resources Matching Grant Program Fund; thereafter, the remainder shall
be deposited into the Capitol Dome and Capitol Improvements Fund.
(d) Each licensed racetrack
shall maintain in its account an amount equal to or greater than the gross
terminal income from its operation of video lottery machines, to be
electronically transferred by the commission on dates established by the
commission. Upon a licensed racetrack's failure to maintain this balance, the
commission may disable all of a licensed racetrack's video lottery terminals
until full payment of all amounts due is made. Interest shall accrue on any
unpaid balance at a rate consistent with the amount charged for state income
tax delinquency under chapter eleven of this code. The interest shall begin to
accrue on the date payment is due to the commission.
(e) The commission's
central control computer shall keep accurate records of all income generated by
each video lottery terminal. The commission shall prepare and mail to the
licensed racetrack a statement reflecting the gross terminal income generated
by the licensee's video lottery terminals. Each licensed racetrack shall report
to the commission any discrepancies between the commission's statement and each
terminal's mechanical and electronic meter readings. The licensed racetrack is
solely responsible for resolving income discrepancies between actual money
collected and the amount shown on the accounting meters or on the commission's
billing statement.
(f) Until an accounting
discrepancy is resolved in favor of the licensed racetrack, the commission may
make no credit adjustments. For any video lottery terminal reflecting a
discrepancy, the licensed racetrack shall submit to the commission the
maintenance log which includes current mechanical meter readings and the audit
ticket which contains electronic meter readings generated by the terminal's
software. If the meter readings and the commission's records cannot be
reconciled, final disposition of the matter shall be determined by the
commission. Any accounting discrepancies which cannot be otherwise resolved
shall be resolved in favor of the commission.
(g) Licensed racetracks
shall remit payment by mail if the electronic transfer of funds is not
operational or the commission notifies licensed racetracks that remittance by
this method is required. The licensed racetracks shall report an amount equal
to the total amount of cash inserted into each video lottery terminal operated
by a licensee, minus the total value of game credits which are cleared from the
video lottery terminal in exchange for winning redemption tickets, and remit
the amount as generated from its terminals during the reporting period. The
remittance shall be sealed in a properly addressed and stamped envelope and
deposited in the United States mail no later than noon on the day when the
payment would otherwise be completed through electronic funds transfer.
(h) Licensed racetracks
may, upon request, receive additional reports of play transactions for their
respective video lottery terminals and other marketing information not
considered confidential by the commission. The commission may charge a
reasonable fee for the cost of producing and mailing any report other than the
billing statements.
(i) The commission has the
right to examine all accounts, bank accounts, financial statements and records
in a licensed racetrack's possession, under its control or in which it has an
interest and the licensed racetrack shall authorize all third parties in
possession or in control of the accounts or records to allow examination of any
of those accounts or records by the commission.
(j) The provisions of
this section relating to the Greyhound Breeding Development Fund are hereby
altered and amended by the provisions of section ten-a, article twenty-three,
chapter nineteen of this code as enacted during the 2017 legislative session.
§29-22A-10b.
Distribution of excess net terminal income.
(a) For all years beginning
on or after July 1, 2001, any amount of net terminal income generated annually
by a licensed racetrack in excess of the amount of net terminal income
generated by that licensed racetrack during the fiscal year ending on June 30,
2001, shall be divided as follows:
(1) The commission shall
receive forty-one percent of net terminal income, which the commission shall
deposit in the State Excess Lottery Revenue Fund created in section eighteen-a,
article twenty-two of this chapter;
(2) Until July 1, 2005,
eight percent of net terminal income at a licensed racetrack shall be deposited
in the special fund established by the licensee and used for payment of regular
purses in addition to other amounts provided in article twenty-three, chapter
nineteen of this code; on and after July 1, 2005, the rate shall be four
percent of net terminal income;
(3) The county where the
video lottery terminals are located shall receive two percent of the net
terminal income Provided, That:
(A) Any amount by which the
total amount under this section and subdivision (3), subsection (c), section
ten of this article is in excess of the two percent received during fiscal year
1999 by a county in which a racetrack is located that has participated in the West
Virginia Thoroughbred Development Fund since on or before January 1, 1999,
shall be divided as follows:
(i) The county shall
receive fifty percent of the excess amount; and
(ii) The municipalities of
the county shall receive fifty percent of the excess amount, the fifty percent
to be divided among the municipalities on a per capita basis as determined by
the most recent decennial United States census of population; and
(B) Any amount by which the
total amount under this section and subdivision (3), subsection (c), section
ten of this article is in excess of the two percent received during fiscal year
1999 by a county in which a racetrack other than a racetrack described in
paragraph (A) of this proviso is located and where the racetrack has been
located in a municipality within the county since on or before January 1, 1999,
shall be divided, if applicable, as follows:
(i) The county shall
receive fifty percent of the excess amount; and
(ii) The municipality shall
receive fifty percent of the excess amount; and
(C) This proviso shall not
affect the amount to be received under this subdivision by any county other
than a county described in paragraph (A) or (B) of this proviso;
(4) One half of one percent
of net terminal income shall be paid for and on behalf of all employees of the Licensed
Racing Association by making a deposit into a special fund to be established by
the Racing Commission to be used for payment into the pension plan for all
employees of the Licensed Racing Association;
(5) The West Virginia
Thoroughbred Development Fund created under section thirteen-b, article
twenty-three, chapter nineteen of this code and the West Virginia Greyhound Breeding
Development Fund created under section ten of said article shall receive an
equal share of a total of not less than one and one half percent of the net
terminal income.
(6) The West Virginia
Racing Commission shall receive one percent of the net terminal income which
shall be deposited and used as provided in section thirteen-c, article
twenty-three, chapter nineteen of this code;
(7) A licensee shall
receive forty-two percent of net terminal income;
(8) The tourism promotion
fund established in section twelve, article two, chapter five-b of this code
shall receive three percent of the net terminal income: Provided, That
for each fiscal year beginning after June 30, 2004, this three percent of net
terminal income shall be distributed pursuant to the provisions of paragraph
(B), subdivision (8), subsection (c), section ten of this article;
(9) (A) On and after July
1, 2005, four percent of net terminal income shall be deposited into the
Workers' Compensation Debt Reduction Fund
created in section five, article two-d, chapter twenty-three of this code: Provided,
That in any fiscal year when the amount of money generated by this subdivision
together with the total allocation transferred by the operation of subdivision
(9), subsection (c), section ten of this article totals $11 million, all
subsequent distributions under this subdivision (9) during that fiscal
year shall be deposited in the special fund established by the licensee
and used for payment of regular purses in addition to other amounts provided in
article twenty-three, chapter nineteen of this code;
(B) The deposit of the four
percent of net terminal income into the Worker's
Compensation Debt Reduction Fund pursuant to this subdivision shall expire and
not be imposed with respect to these funds, which shall be deposited in the
special fund established by the licensee and used for payment of regular purses
in addition to the other amounts provided in article twenty-three, chapter
nineteen of this code on and after the first day of the month following the
month in which the Governor certifies to the Legislature that: (i) The revenue
bonds issued pursuant to article two-d, chapter twenty-three of this code have
been retired or payment of the debt service is provided for; and (ii) that an
independent certified actuary has determined that the unfunded liability of the
Old Fund, as defined in chapter twenty-three of this code, has been paid or
provided in its entirety; and
(10) (A) One percent of the
net terminal income shall be deposited in equal amounts in the Capitol Dome and
Improvements Fund created under section two, article four, chapter five-a of
this code and cultural facilities and capitol resources matching grant program
fund created under section three, article one of this chapter; and
(B) Notwithstanding any
provision of paragraph (A) of this subdivision to the contrary, for each fiscal
year beginning after June 30, 2004, this one percent of net terminal income
shall be distributed pursuant to the provisions of subparagraph (ii), paragraph
(B), subdivision (9), subsection (c), section ten of this article.
(b) The commission may
establish orderly and effective procedures for the collection and distribution
of funds under this section in accordance with the provisions of this section
and section ten of this article.
(c) The provisions of
this section relating to the Greyhound Breeding Development Fund are hereby
altered and amended by the provisions of section ten-a, article twenty-three,
chapter nineteen of this code as enacted during the 2017 legislative session.
§29-22A-10d. Changes in
distribution of net terminal income; distributions from excess lottery fund.
(a) Notwithstanding any provision of subsection (b), section
ten of this article to the contrary, for the fiscal year beginning July 1,
2014, and each fiscal year thereafter, the commission may transfer up to $9
million as actual costs and expenses to the Licensed Racetrack Modernization
Fund.
(b) Notwithstanding any provision of subsection (c), section
ten of this article to the contrary, for the fiscal year beginning July 1,
2014, and each fiscal year thereafter, each distribution, except those
distributions to be made pursuant to subdivisions (1), (2), (3), (4), (5) and
(7), subsection (c), section ten of this article, shall be reduced by one
hundred percent. For fiscal year
beginning July 1, 2017, and each fiscal year thereafter, the distribution to
the special fund established by the licensee, and used for payment of regular
purses, pursuant to subdivision (2), subsection (c), section ten of this
article shall only include amounts to be distributed to each thoroughbred
racetrack video lottery licensee. Payments
shall not be made pursuant to section ten of this article, other than those
excepted by this subsection, and are made in lieu thereof in an amount to be
determined by appropriation from the State Excess Lottery Revenue Fund.
(c) The total amount of reductions resulting from subsection
(b) of this section shall be paid into the State Excess Lottery Revenue Fund,
created by section eighteen-a, article twenty-two of this chapter. For the
fiscal year beginning July 1, 2014, and each fiscal year thereafter,
distributions to be made pursuant to subdivisions (2) and (5), subsection (c),
section ten of this article shall be reduced by ten percent, and the amounts
resulting from the reduction shall be paid into the State Excess Lottery
Revenue Fund.
(d) Notwithstanding any other provision of this code to the
contrary, for the fiscal year beginning July 1, 2014, and each fiscal year
thereafter, moneys deposited to the State Excess Lottery Revenue Fund pursuant
to this section shall be expended by the lottery in accordance with
appropriations.
(e) Prior to payment of any appropriation made pursuant to
this section, debt service payments payable from the State Excess Lottery Fund
shall first be paid in accordance with the provisions of sections eighteen-a,
eighteen-d and eighteen-e, article twenty-two of this chapter and in the
priority as defined by subsection (c), section eighteen-f, article twenty-two
of this chapter.
(f) Notwithstanding any other provision of this code to the
contrary, after payment of debt service from the State Excess Lottery Revenue
Fund, all other distributions required by section eighteen-a, article twenty-two
of this chapter and the distributions appropriated pursuant to this section
shall be paid on a pro rata basis.
(g)(1) Except as provided in subdivision (2) of this
subsection, notwithstanding the provisions of paragraph (B), subdivision (9),
subsection (c), section ten of this article, upon certification of the Governor
to the Legislature that an independent actuary has determined that the unfunded
liability of the Old Fund, as defined in chapter twenty-three of this code, has
been paid or provided for in its entirety, the transfers made to the Workers’
Compensation Debt Reduction Fund pursuant to paragraph (A), subdivision (9),
subsection (c), section ten of this article shall expire and those funds shall
remain in the State Excess Lottery Revenue Fund subject to appropriation.
(2)(A) Notwithstanding any provision of subdivision (1) of
this subsection or any provision of paragraph (B), subdivision (9), subsection
(c), section ten of this article or any other provision of this code to the
contrary, if the budget shortfall, as determined by the state budget office as
of December 1, 2015, is greater than $100 million, then the Governor may, by executive
order, redirect deposits of revenues derived from net terminal income imposed
under this article, for any period commencing after February 29, 2016 and
ending before July 1, 2016, to the General Revenue Fund, instead of to the
funds otherwise mandated in this article, in article two-d, chapter
twenty-three of this code or in any other provision of this code.
(B)
Notwithstanding any provision of subdivision (1) of this subsection or any
provision of paragraph (B), subdivision (9), subsection (c), section ten of
this article or any other provision of this code to the contrary, the Governor
may, by executive order, redirect one-half of the deposits of revenues derived
from net terminal income imposed under this article, for any period commencing
after June 30, 2016, and ending before July 1, 2017, to the General Revenue
Fund, instead of to the funds otherwise mandated in this article, in article
two-d, chapter twenty-three of this code or in any other provision of this
code, until certification of the Governor to the Legislature that an
independent actuary has determined that the unfunded liability of the Old Fund,
as defined in chapter twenty three of this code, has been paid or provided for
in its entirety.
§29-22A-10e. Changes in
distribution of excess net terminal income; distributions from excess lottery
fund.
(a) Notwithstanding any provision of subsection (a), section
ten-b of this article to the contrary, for the fiscal year beginning July 1,
2014, and each fiscal year thereafter, each distribution, except those
distributions to be made pursuant to subdivisions (1), (2), (3), (4), (5) and
(7), subsection (a), section ten-b of this article, shall be reduced by one
hundred percent. For fiscal year
beginning July 1, 2017, and each fiscal year thereafter, the distribution to
the special fund established by the licensee, and used for payment of regular
purses, pursuant to subdivision (2), subsection (a), section ten-b of this
article may only include amounts to be distributed to each thoroughbred
racetrack video lottery licensee. Payments
shall not be made pursuant to section ten-b of this article, other than those
excepted by this subsection, and are made in lieu thereof in an amount to be
determined by appropriation from the State Excess Lottery Revenue Fund.
(b) The total amount of reductions resulting from subsection
(a) of this section shall be paid into the State Excess Lottery Revenue Fund
created in section eighteen-a, article twenty-two of this chapter. For the
fiscal year beginning July 1, 2014, and each fiscal year thereafter,
distributions to be made pursuant to subdivisions (2) and (5), subsection (a),
section ten-b of this article shall be reduced by ten percent, and the amounts
resulting from the reduction shall be paid into the State Excess Lottery
Revenue Fund.
(c) Notwithstanding any other provision of this code to the
contrary, for the fiscal year beginning July 1, 2014, and each fiscal year
thereafter, moneys deposited to the State Excess Lottery Revenue Fund pursuant
to this section shall be expended by the lottery in accordance with
appropriations.
(d) Prior to payment of any appropriation made pursuant to
this section, debt service payments payable from the State Excess Lottery Fund
shall first be paid in accordance with the provisions of sections eighteen-a,
eighteen-d, and eighteen-e, article twenty-two of this chapter and in the priority
as defined by subsection (c), section eighteen-f, article twenty-two of this
chapter.
(e) Notwithstanding any other provision of this code to the
contrary, after payment of debt service from the State Excess Lottery Revenue
Fund, all other distributions required by section eighteen-a, article twenty-two
of this chapter and the distributions appropriated pursuant to this section
shall be paid on a pro rata basis.
(f)(1) Except as provided in subdivision (2) of this
subsection, notwithstanding the provisions of paragraph (B), subdivision (9),
subsection (a), section ten-b of this article, upon certification of the
Governor to the Legislature that an independent actuary has determined that the
unfunded liability of the Old Fund, as defined in chapter twenty-three of this
code, has been paid or provided for in its entirety, the transfers made to the
Workers’ Compensation Debt Reduction Fund pursuant to paragraph (A),
subdivision (9), subsection (a), section ten-b of this article shall expire and
those funds shall remain in the State Excess Lottery Revenue Fund subject to
appropriation.
(2)(A) Notwithstanding any provision of subdivision (1) of
this subsection or any provision of paragraph (B), subdivision (9), subsection
(a), section ten-b of this article or any other provision of this
code to the contrary, if the budget shortfall, as determined by the state budget
office as of December 1, 2015, is greater than $100 million, then the Governor
may, by executive order, redirect deposits of revenues derived from net
terminal income imposed under this article, for any period commencing after
February 29, 2016 and ending before July 1, 2016, to the General Revenue Fund,
instead of to the funds otherwise mandated in this article, in article two-d,
chapter twenty-three of this code or in any other provision of this code.
(B)
Notwithstanding any provision of subdivision (1) of this subsection or any
provision of paragraph (B), subdivision (9), subsection (a), section ten-b of
this article or any other provision of this code to the contrary, the Governor
may, by executive order, redirect one-half of the deposits of revenues derived
from net terminal income imposed under this article, for any period commencing
after June 30, 2016, and ending before July 1, 2017, to the General Revenue
Fund, instead of to the funds otherwise mandated in this article, in article
two-d, chapter twenty-three of this code or in any other provision of this
code, until certification of the Governor to the Legislature that an
independent actuary has determined that the unfunded liability of the Old Fund,
as defined in chapter twenty three of this code, has been paid or provided for
in its entirety.
ARTICLE 22C. WEST
VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT.
§29-22C-8. License to
operate a racetrack with West Virginia Lottery table games.
(a) Racetrack table games licenses. -- The commission may
issue up to four racetrack table games licenses to operate West Virginia
Lottery table games in accordance with the provisions of this article. The
Legislature intends that no more than four licenses to operate a racetrack with
West Virginia Lottery table games in this state shall be permitted in any
event.
(b) Grant of license. -- Upon the passage of a local option
election in a county in accordance with the provisions of section seven of this
article, the commission shall immediately grant a West Virginia Lottery table
games license, and a license for the right to conduct West Virginia Lottery
table games as assignee to the intellectual property rights of the state, to
allow the licensee to conduct West Virginia table games at the licensed
pari-mutuel racetrack identified on the local option election ballot, provided
that racetrack holds a valid racetrack video lottery license issued by the
commission pursuant to article twenty-two-a of this chapter and a valid
racing license granted by the West Virginia Racing Commission pursuant to the
provisions of article twenty-three, chapter nineteen of this code and has
otherwise met the requirements for licensure under the provisions of this
article and the rules of the commission.
(c) Location. -- A racetrack table games license authorizes
the operation of West Virginia Lottery table games on the grounds of the
particular licensed facility identified in the racetrack video lottery license
issued pursuant to article twenty-two-a and the license to conduct horse or dog
racing issued pursuant to article twenty-three, chapter nineteen of this code.
(d) Floor plan submission requirement. -- Prior to commencing
the operation of any table games in a designated gaming area, a racetrack table
games licensee shall submit to the commission for its approval a detailed floor
plan depicting the location of the designated gaming area in which table games
gaming equipment will be located and its proposed arrangement of the table
games gaming equipment. Any floor plan submission that satisfies the
requirements of the rules promulgated by the commission shall be considered
approved by the commission unless the racetrack table games licensee is
notified in writing to the contrary within one month of filing a detailed floor
plan.
(e) Management service contracts. --
(1) Approval. -- A racetrack table games licensee may not
enter into any management service contract that would permit any person other
than the licensee to act as the commission's agent in operating West Virginia
Lottery table games unless the management service contract is: (A) With a
person licensed under this article to provide management services; (B) is in
writing; and (C) the contract has been approved by the commission.
(2) Material change. -- The licensed racetrack table games
licensee shall submit any material change in a management service contract
previously approved by the commission to the commission for its approval or
rejection before the material change may take effect.
(3) Prohibition on assignment or transfer. -- A management
services contract may not be assigned or transferred to a third party.
(4) Other commission approvals and licenses. -- The duties
and responsibilities of a management services provider under a management
services contract may not be assigned, delegated, subcontracted or transferred
to a third party to perform without the prior approval of the commission. Third
parties must be licensed under this article before providing service. The
commission may by rule clarify application of this subdivision and provide
exceptions to its application. The commission shall license and require the
display of West Virginia Lottery game logos on appropriate game surfaces and
other gaming items and locations as the commission considers appropriate.
(f) Coordination of licensed activities. -- In order to
coordinate various licensed activities within racetrack facilities, the
following provisions apply to licensed racetrack facilities:
(1) The provisions of this article and of article
twenty-two-a of this chapter shall be interpreted to allow West Virginia
Lottery table games and racetrack video lottery operations under those articles
to be harmoniously conducted in the same designated gaming area.
(2) On the effective date of this article, the provisions of
section twenty-three of this article apply to all video lottery games conducted
within a racetrack facility, notwithstanding any inconsistent provisions
contained in article twenty-two-a of this chapter to the contrary.
(3) On and after the effective date of this article, vacation
of the premises after service of beverages ceases is not required,
notwithstanding to the contrary any inconsistent provisions of this code or
inconsistent rules promulgated by the Alcohol Beverage Control Commissioner
with respect to hours of sale of those beverages, or required vacation of the
premises.
(g) Fees, expiration date and renewal. --
(1) An initial racetrack table games license fee of $1,500,000
be paid to the commission at the time of issuance of the racetrack table games
license, regardless of the number of months remaining in the license year for
which it is issued. All licenses expire at the end of the day on June 30 each
year.
(2) The commission shall annually renew a racetrack table
games license as of July 1 of each year provided the licensee:
(A) Successfully renews its racetrack video lottery license
under article twenty-two-a of this chapter before July 1;
(B) Pays to the commission the annual license renewal fee of $2,500,000
required by this section at the time it files its application for renewal of
its license under article twenty-two-a of this chapter; and
(C) During the current license year, the licensee complied
with all provisions of this article, all rules adopted by the commission and
all final orders of the commission applicable to the licensee.
(3) Annual license surcharge for failure to construct hotel
on premises. -- It is the intent of the Legislature that each racetrack for
which a racetrack table games license has been issued be or become a
destination tourism resort facility. To that end, it is important that each
racetrack for which a racetrack table games license has been issued operate a
hotel with significant amenities. Therefore, in addition to all other taxes and
fees required by the provisions of this article, there is hereby imposed, upon
each racetrack for which a racetrack table games license has been issued an
annual license surcharge, payable to the commission in the amount of $2,500,000
if that racetrack does not operate a hotel on its racing property that contains
at least one hundred fifty guest rooms with significant amenities within three
years of the passage of the local option election in its county authorizing
table games at the racetrack, provided the time for completion of the hotel
shall be extended by the same number of days as the completion of the hotel is
delayed by a force majeure events or conditions beyond the reasonable control
of the racetrack licensee. The surcharge shall be paid upon each renewal of its
racetrack table games license made after the expiration of the three year
period, and may be extended by the above force majeure events or conditions,
until the racetrack opens a qualifying hotel.
(4) If the licensee fails to apply to renew its license under
article twenty-three, chapter nineteen and article twenty-two-a, chapter
twenty-nine of this code until after the license expires, the commission shall
renew its license under this article at the time it renews its license under
article twenty-two-a of this chapter provided the licensee has paid the annual
license fee required by this section and during the preceding license year the
licensee complied with all provisions of this article, all rules adopted by the
commission and all final orders of the commission applicable to the licensee.
(h) Facility qualifications. -- A racetrack table games
licensee shall demonstrate that the racetrack with West Virginia Lottery table
games will: (1) Be accessible to disabled individuals in accordance with
applicable federal and state laws; (2) be licensed in accordance with this
article, and all other applicable federal, state and local laws; and (3) meet
any other qualifications specified in rules adopted by the commission.
(i) Surety bond. -- A racetrack table games licensee shall
execute a surety bond to be given to the state to guarantee the licensee
faithfully makes all payments in accordance with the provisions of this article
and rules promulgated by the commission. The surety bond shall be:
(1) In the amount determined by the commission to be adequate
to protect the state against nonpayment by the licensee of amounts due the
state under this article;
(2) In a form approved by the commission; and
(3) With a surety approved by the commission who is licensed
to write surety insurance in this state. The bond shall remain in effect during
the term of the license and may not be canceled by a surety on less than thirty
days' notice in writing to the commission. The total and aggregate liability of
the surety on the bond is limited to the amount specified in the bond.
(j) Authorization. -- A racetrack table games license
authorizes the licensee act as an agent of the commission in operating an
unlimited amount of West Virginia Lottery table games while the license is
active, subject to subsection (d) of this section. A racetrack table games
license is not transferable or assignable and cannot be sold or pledged as collateral.
(k) Audits. -- When applying for a license and annually
thereafter prior to license renewal, a racetrack table games licensee shall
submit to the commission an annual audit, by a certified public accountant, of
the financial transactions and condition of the licensee's total operations.
The audit shall be made in accordance with generally accepted accounting
principles and applicable federal and state laws.
(l) Commission office space. -- A racetrack table games
licensee shall provide to the commission, at no cost to the commission,
suitable office space at the racetrack facility for the commission to perform
the duties required of it by this article and the rules of the commission.
§29-22C-27. West Virginia Lottery Racetrack Table Games
Fund; Community-Based Service Fund; State Debt Reduction Fund; distribution of
funds.
(a) (1) The special fund in
the State Treasury known as the West Virginia Lottery Racetrack Table Games
Fund is continued and all tax collected under this article shall be deposited
with the State Treasurer and placed in the West Virginia Lottery Racetrack
Table Games Fund. The fund shall be an
interest-bearing account with all interest or other return earned on the money
of the fund credited to and deposited in the fund.
(2) Notwithstanding any
provision of this article to the contrary, all racetrack table games license
fees received by the commission pursuant to section eight of this article shall
be deposited into the Community-Based Service Fund which is continued in the
State Treasury. Moneys of the fund shall
be expended by the Bureau of Senior Services upon appropriation of the
Legislature solely for the purpose of enabling the aged and disabled citizens
of this state to maintain their residency in the community-based setting
through the provision of home and community-based services.
(b) From the gross amounts
deposited into the Racetrack Table Games Fund pursuant to subsection (a) of
this section, the commission shall:
(1) Retain an amount for
the administrative expenses of the commission as determined by the commission
in accordance with subsection (e) of this section;
(2) Transfer two and
one-half percent of adjusted gross receipts from all thoroughbred racetracks
with West Virginia Lottery table games to the special funds established by each
thoroughbred racetrack table games licensees for the payment of regular
racetrack purses, the amount being divided on a pro rata basis between the
special funds of each thoroughbred racetrack table games licensee and transfer
two and one-half percent of adjusted gross receipts from all greyhound
racetracks with West Virginia Lottery table games to the special funds
established by each greyhound racetrack table games licensees for the payment
of regular racetrack purses, the amount being divided equally between the
special funds of each greyhound racetrack table games licensee;
(3) Transfer two percent of
the adjusted gross receipts from all licensed racetracks to the West Virginia
Thoroughbred Development Fund created under section thirteen-b, article
twenty-three, chapter nineteen of this code and the West Virginia Greyhound
Breeding Development Fund created under section ten, article twenty-three,
chapter nineteen of this code. The total
amount transferred under this subdivision shall be divided pro rata among the
development funds for each racetrack table games licensee based on relative
adjusted receipts from each racetrack.
The amounts transferred to these funds may not be used for the benefit
of any person or activity other than at or associated with a racetrack table
games licensee;
(4) Transfer one percent of
the adjusted gross receipts from each licensed racetrack to the county
commissions of the counties where racetracks with West Virginia Lottery table
games are located. County commissions may
pledge this money to make payments on lottery revenue bonds issued pursuant to
article two-h, chapter thirteen of this code.
The one percent transferred under this subdivision shall be divided pro
rata among the counties with a racetrack with West Virginia Lottery table games
based on relative adjusted gross receipts from each county’s racetrack: Provided,
That the county board of education of a growth county, as that term is defined
in section three, article twenty, chapter seven of this code, which has enacted
the Local Powers Act, and in which county a racetrack is located that has
participated in the West Virginia Thoroughbred Development Fund since on or
before January 1, 1991, shall receive the one percent of adjusted gross
receipts as provided in this subdivision for the purpose of public projects, as
defined in section two, article two-h, chapter thirteen of this code or to make
payments on lottery revenue bonds issued to finance public projects;
(5) Transfer two percent of
the adjusted gross receipts from each licensed racetrack to the governing
bodies of municipalities within counties where racetracks with West Virginia
Lottery table games are located.
Municipalities may pledge the money to make payments on lottery revenue
bonds issued pursuant to article two-h, chapter thirteen of this code. This money shall be allocated as follows:
(A) One half of the amounts
transferred under this subdivision shall be allocated to the municipalities
within each county having a racetrack table games licensee, based on relative
adjusted gross receipts from West Virginia Lottery table games from those
racetracks and the total amount allocated to the municipalities within a county
shall be divided pro rata among the municipalities based on each municipality’s
population determined at the most recent United States decennial census of
population: Provided, That: (i) For
each allocation, when a municipality is physically located in two or more
counties, only that portion of its population residing in the county where the
authorized table games are located shall be considered; (ii) a single
municipality in a county where West Virginia Lottery racetrack table games are
played may not receive a total share under this paragraph that is in excess of
seventy-five percent of the total distribution under this paragraph for the
county in which the municipality is located; and (iii) a municipality receiving
moneys under this paragraph may not receive an amount which is less than that
received by a municipality under provisions of subdivision (4), subsection (d)
of this section; and
(B) One half of the amounts
transferred under this subdivision shall be allocated pro rata to the
municipalities within all the counties, having a racetrack table games licensee
based on each municipality’s population determined at the most recent United
States decennial census of population:
Provided, That: (i) A municipality
which received funds above its pro rata share pursuant to subpart (iii),
paragraph (A) of this subdivision may not receive an allocation under this
paragraph; (ii) for each allocation, when a municipality is physically located
in two or more counties, only that portion of its population residing in the
county where the authorized table games are located shall be considered; and
(iii) a single municipality in a county where West Virginia Lottery racetrack
games are played may not receive a total share under this paragraph that is in
excess of twenty-five percent of the total transfers under this paragraph: Provided, however, That the county board
of education of a growth county, as that term is defined in section three,
article twenty, chapter seven of this code, which has enacted the Local Powers
Act, and in which county a racetrack is located that has participated in the
West Virginia Thoroughbred Development Fund since on or before January 1, 1991,
shall receive the two percent of adjusted gross receipts as provided in this
subdivision for the purpose of public projects, as defined in section two,
article two-h, chapter thirteen of this code, or to make payments on lottery
revenue bonds issued to finance the public projects;
(6) Transfer one half of
one percent of the adjusted gross receipts to the governing bodies of
municipalities in which a racetrack table games licensee is located. The municipalities shall each receive an
equal share of the total amount allocated under this subdivision: Provided, That distribution under this
subdivision may not be made to any municipality which did not have a licensed
racetrack within its municipal boundaries as they existed on January 1,
2007: Provided, however, That if no racetrack table games licensee is
located within a municipality, a transfer may not be made under this
subdivision. The municipality may pledge
this money to make payments on lottery revenue bonds issued pursuant to article
two-h, chapter thirteen of this code; and
(7) Distribute the
remaining amounts, hereinafter referred to as the net amounts in the Racetrack
Table Games Funds, in accordance with the provisions of subsection (d) of this
section.
(c) Beginning with the
fiscal year following the licensing of every licensed racetrack to offer West
Virginia Lottery racetrack table games under this article, subsection (b) of
this section shall be superseded and replaced by this subsection for
distribution of the balances in the fund established by subsection (a) of this
section. From the gross amounts
deposited into the fund, the commission shall:
(1) Retain an amount for
the administrative expenses of the commission as determined by the commission
in accordance with subsection(e) of this section;
(2) Transfer two and
one-half percent of adjusted gross receipts from all thoroughbred racetracks
with West Virginia Lottery table games to the special funds established by each
thoroughbred racetrack table games licensee for the payment of regular
racetrack purses, the amount being divided on a pro rata basis between the
special funds of each thoroughbred racetrack table games licensee and transfer
two and one-half percent of adjusted gross receipts from all greyhound racetracks
with West Virginia Lottery table games to the special funds established by each
greyhound racetrack table games licensee for the payment of regular racetrack
purses, the amount being divided equally between the special funds of each
greyhound racetrack table games licensee;
(3) Transfer two percent of
the adjusted gross receipts from all licensed racetracks to the West Virginia
Thoroughbred Development Fund created under section thirteen-b, article
twenty-three, chapter nineteen of this code and the West Virginia Greyhound
Breeding Development Fund created under section ten, article twenty-three,
chapter nineteen of this code. The total
amount transferred under this subdivision shall be divided pro rata among the
development funds for each racetrack table games licensee based on relative
adjusted receipts from each racetrack.
The amounts transferred to these funds may not be used for the benefit
of any person or activity other than at or associated with a racetrack table
games licensee;
(4) Transfer two percent of
the adjusted gross receipts from each licensed racetrack to the county
commissions of the counties where racetracks with West Virginia Lottery table
games are located. The money transferred
under this subdivision shall be divided pro rata among the counties with a
racetrack with West Virginia Lottery table games based on relative adjusted
gross receipts from each county’s racetrack: Provided, That the county
board of education of a growth county, as that term is defined in section
three, article twenty, chapter seven of this code, which has enacted the Local
Powers Act, and in which a racetrack is located that has participated in the
West Virginia Thoroughbred Development Fund since on or before January 1, 1991,
shall receive one half of that county’s share of adjusted gross receipts as
provided in this subdivision for the purpose of capital improvements;
(5) Transfer three percent
of the adjusted gross receipts from each licensed racetrack to the governing
bodies of municipalities within counties where racetracks with West Virginia
Lottery table games are located, which shall be allocated as follows:
(A) One half of the money
transferred by this subdivision shall be allocated to the municipalities within
each county, other than a county described in paragraph (C) of this
subdivision, having a racetrack table games licensee based on relative adjusted
gross receipts from West Virginia Lottery table games from those racetracks and
the total amount allocated to the municipalities within a county shall be
divided pro rata among the municipalities based on each municipality’s
population determined at the most recent United States decennial census of
population: Provided, That: (i) For each allocation, when a municipality
is physically located in two or more counties, only that portion of its
population residing in the county where the authorized table games are located
shall be considered; (ii) a single municipality in a county where West Virginia
Lottery racetrack table games are played may not receive a total share under
this paragraph that is in excess of seventy-five percent of the total
distribution under this paragraph for the county in which the municipality is
located; and (iii) a municipality receiving moneys under this paragraph may not
receive an amount which is less than that received by a municipality under
provisions of subdivision (4), subsection (d) of this section.
(B) One half of the money
transferred under this subdivision shall be allocated pro rata to the
municipalities within all the counties, other than a county described in
paragraph (C) of this subdivision, having a racetrack table games licensee
based on each municipality’s population determined at the most recent United
States decennial census of population:
Provided, That: (i) A
municipality which received funds above its pro rata share pursuant to
subparagraph (iii), paragraph (A) of this subdivision shall not receive an
allocation under this paragraph; (ii) for each allocation, when a municipality
is physically located in two or more counties, only that portion of its
population residing in the county where the authorized table games are located
shall be considered; and (iii) a single municipality in a county where West
Virginia Lottery racetrack games are played may not receive a total share under
this paragraph that is in excess of twenty-five percent of the total transfers
under this paragraph.
(C) Notwithstanding the
provisions of paragraphs (A) and (B) of this subdivision, when a racetrack is
located in a growth county, as that term is defined in section three, article
twenty, chapter seven of this code, which has enacted the Local Powers Act, and
in which county a racetrack is located that has participated in the West
Virginia Thoroughbred Development Fund since on or before January 1, 1991, the county
board of education shall receive two thirds of the share of adjusted gross
receipts from West Virginia Lottery table games from the racetrack in the
county as provided in this subdivision and the municipalities within the county
shall share the remaining one third of the total amount allocated as provided
in this paragraph. The municipal
one-third share shall be divided pro rata among the municipalities based on
each municipality’s population determined at the most recent United States
decennial census of population. All
money transferred under this paragraph shall be used by the county board of
education and by the municipalities for the purpose of capital improvements;
(6) Transfer one half of
one percent of the adjusted gross receipts to the governing bodies of
municipalities in which a racetrack table games licensee is located. The municipalities shall each receive an
equal share of the total amount allocated under this subdivision: Provided, That distribution under this
subdivision may not be made to any municipality that did not have a licensed
racetrack within its municipal boundaries as they existed on January 1, 2007: Provided, however, That if no racetrack
table games licensee is located within a municipality, a transfer may not be
made under this subdivision; and
(7) Distribute the
remaining amounts, hereinafter referred to as the net amounts in the Racetrack
Table Games Funds, in accordance with the provisions of subsection (d) of this
section.
(d) From the net amounts in
the Racetrack Table Games Fund, the commission shall:
(1) Transfer seventy-six
percent to the State Debt Reduction Fund which is hereby continued in the State
Treasury. Moneys of the fund shall be
expended solely for the purpose of accelerating the reduction of existing
unfunded liabilities and existing bond indebtedness of the state and shall be
expended or transferred only upon appropriation of the Legislature;
(2) Transfer four percent, divided
pro rata based on relative adjusted gross receipts from the individual licensed
racetracks for and on behalf of all employees of each Licensed Racing Association,
into a special fund to be established by the Racing Commission to be used for
payment into the pension plan for all employees of each Licensed Racing Association;
(3) Transfer ten percent,
to be divided and paid in equal shares, to each county commission in the state
that is not eligible to receive a distribution under subdivision (4),
subsection (b) of this section: Provided, That funds transferred to
county commissions under this subdivision shall be used only to pay regional
jail expenses and the costs of infrastructure improvements and other capital
improvements: Provided, however, That up to fifty percent of these funds may be
pledged to make payments on lottery revenue bonds issued pursuant to article
two-h, chapter thirteen of this code; and
(4) Transfer ten percent,
to be divided and paid in equal shares, to the governing bodies of each
municipality in the state that is not eligible to receive a distribution under
subdivisions (5) and (6), subsection (b) of this section: Provided, That funds
transferred to municipalities under this subdivision shall be used only to pay
for debt reduction in municipal police and fire pension funds and the costs of
infrastructure improvements and other capital improvements: Provided,
however, That up to fifty percent of these funds may be pledged to make
payments on lottery revenue bonds issued pursuant to article two-h, chapter
thirteen of this code.
(e) All expenses of the
commission incurred in the administration and enforcement of this article shall
be paid from the Racetrack Table Games Fund, including reimbursement of state
law-enforcement agencies for services performed at the request of the commission
pursuant to this article. The
commission’s expenses associated with a particular racetrack with authorized
table games under this article may not exceed three percent of the total annual
adjusted gross receipts received from that licensee’s operation of table games
under this article, including, but not limited to, all license fees or other
amounts attributable to the licensee’s operation of table games under this
article, except as provided in subdivision (2), subsection (a) of this section. However, for the fiscal year following the
licensing of every licensed racetrack to offer West Virginia Lottery racetrack
table games under this article and for the fiscal year thereafter, the
commission’s expenses associated with a particular racetrack with authorized
table games under this article may not exceed four percent of the total annual
adjusted gross receipts received from that licensee’s operation of table games
under this article, including, but not limited to, all license fees or other
amounts attributable to the licensee’s operation of table games under this
article, except as provided in subdivision (2), subsection (a) of this
section. These expenses shall either be
allocated to the racetrack with West Virginia Lottery table games for which the
expense is incurred, if practicable, or be treated as general expenses related
to all racetrack table games facilities and be allocated pro rata among the
racetrack table games facilities based on the ratio that annual adjusted gross
receipts from operation of table games at each racetrack with West Virginia
Lottery table games bears to total annual adjusted gross receipts from
operation of table games at all racetracks with West Virginia Lottery table
games during the fiscal year of the state.
From this allowance, the commission shall transfer at least $100,000 but
not more than $500,000 into the Compulsive Gambling Treatment Fund created in
section nineteen, article twenty-two-a of this chapter.
(f) The provisions of
this section relating to the Greyhound Breeding Development Fund are hereby
altered and amended by the provisions of section ten-a, article twenty-three,
chapter nineteen of this code as enacted during the 2017 legislative session.
§29-22C-27a. Changes in
distribution of adjusted gross receipts; distributions from Excess Lottery Fund.
(a) Notwithstanding any
provision of section twenty-seven of this article to the contrary, for the
fiscal year beginning July 1, 2014, and each fiscal year thereafter, the
distribution directed pursuant to subdivision (1), subsection (d) of that
section shall be reduced by one hundred percent. For fiscal year
beginning July 1, 2017, and each fiscal year thereafter, the distribution to
the special fund established by the licensee, and used for payment of regular
purses, pursuant to subdivision (2), subsection (c), section twenty-seven of
this article shall only include amounts to be distributed to each thoroughbred
racetrack table games licensee.
(b) The total amount of reductions resulting
from subsection (a) of this section shall be paid into the State Excess Lottery
Revenue Fund created in section eighteen-a, article twenty-two of this chapter.
For the fiscal year beginning July 1, 2014, and each fiscal year thereafter,
distributions to be made pursuant to subdivisions (2) and (3), subsection (c),
section twenty-seven of this article shall be reduced by ten percent, and the
amounts resulting from the reduction shall be paid into the State Excess
Lottery Revenue Fund.
(c) Notwithstanding any
other provision of this code to the contrary, for the fiscal year beginning
July 1, 2014, and each fiscal year thereafter, moneys deposited to the State
Excess Lottery Revenue Fund pursuant to this section shall be expended by the lottery
in accordance with appropriations.
(d) Prior to payment of any
appropriation made pursuant to this section, debt service payments payable from
the State Excess Lottery Fund shall first be paid in accordance with the provisions
of sections eighteen-a, eighteen-d and eighteen-e, article twenty-two of this
chapter and in the priority as defined by subsection (c), section eighteen-f,
article twenty-two of this chapter.
(e) Notwithstanding any
other provision of this code to the contrary, after payment of debt service
from the State Excess Lottery Revenue Fund, all other distributions required by
section eighteen-a, article twenty-two of this chapter and the distributions
appropriated pursuant to this section shall be paid on a pro rata basis.
NOTE: The purpose of this bill is
to transfer all the funds now existing or created in the future in the
Greyhound Breeding Development Fund to the Excess Lottery Revenue Fund.
Strike-throughs indicate language
that would be stricken from a heading or the present law, and underscoring
indicates new language that would be added.