H. B. 2117
(By Delegate Martin)
[Introduced February 11, 2009; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §29-22B-1408 of the Code of West
Virginia, 1931, as amended, relating to reallocating the
proceeds from limited video lottery by increasing the
percentages payable to counties, municipalities and retailers.
Be it enacted by the Legislature of West Virginia:
That §29-22B-1408 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 22B. LIMITED VIDEO LOTTERY.
§29-22B-1408. Distribution of state's share of gross terminal
income.
(a) The state's share of gross terminal income is calculated
as follows:
(1) The commission shall deposit two percent of gross terminal
income into the State Lottery Fund for the commission's costs and
expenses incurred in administering this article. From this amount, not less than $150,000 nor more than $1 million per fiscal year, as
determined by the commission each year, shall be transferred to the
compulsive gambling treatment fund created in section nineteen,
article twenty-two-a of this chapter. In the event that the
percentage allotted under this subsection for the commission's
costs and expenses incurred in administering this article generates
a surplus, the surplus shall be allowed to accumulate to an amount
not to exceed $250,000. On a monthly basis, the director shall
report to the Joint Committee on Government and Finance of the
Legislature any surplus in excess of $250,000 and remit to the
State Treasurer the entire amount of those surplus funds in excess
of $250,000 to be deposited in the fund established in section
eighteen-a, article twenty-two of this chapter:
Provided, That at
the close of each of the fiscal years ending June 30, 2006, 2007,
2008, 2009, 2010 and 2011, the portion of the two percent allowance
for administrative expenses provided in this subdivision (1) that
remains unspent for costs and expenses incurred in administering
this article, not to exceed $20 million in any fiscal year, shall
be transferred to the Revenue Center Construction Fund created by
subsection (l) of section eighteen, article twenty-two of this
chapter for the purpose of constructing a state office building.
(2) Gross profits are determined by deducting the percentage
described in subdivision (1) of this subsection, from gross
terminal income.
(3) The commission shall receive thirty percent of gross
profits as defined in subdivision (2) of this subsection except as
otherwise provided in this subdivision. On June 1, 2002, the
commission shall calculate the aggregate average daily gross
terminal income for all operating video lottery terminals during
the preceding three month period. Thereafter, the commission shall
make the calculation on the first day of the month preceding the
months of October, January, April and July of each year. So long
as the aggregate average gross terminal income per day for the
operating video lottery terminals does not exceed $60, the
commission's share of gross profits shall continue to be thirty
percent for the succeeding quarter of the year beginning July 1.
Beginning July 1, 2002, and the first days of October, January,
April and July in 2002, and thereafter, if the commission's
calculation of aggregate average daily gross terminal income per
video lottery terminal yields an amount greater than $60, one of
the following schedules apply: If the amount is greater than $60
per day but not greater than $80 per day, the commission's share of
gross profits for the ensuing quarter beginning the first day of
the quarter of the year described in this subdivision shall be
thirty-four percent; if the amount is greater than $80 per day but
not greater than $100 per day, the commission's share of gross
profits for the ensuing quarter beginning the first day of the
quarter of the year described in this subdivision shall be thirty-eight percent; if the amount is greater than $100 per day
but not greater than $120 per day, the commission's share of gross
profits for the ensuing quarter beginning the first day of the
quarter of the year described in this subdivision shall be
forty-two percent; if the amount is greater than $120 per day but
not greater than $140 per day, the commission's share of gross
profits for the ensuing quarter beginning the first day of the
quarter of the year described in this subdivision shall be
forty-six percent; if the amount is greater than $140 per day, the
commission's share of gross profits for the ensuing quarter
beginning the first day of the quarter of the year described in
this subdivision shall be fifty percent.
There shall be an
additional eight percent deducted from the gross profits and
payable to the video lottery retailers. This
remaining amount
shall be known as net terminal income.
(b) Net terminal income shall be distributed by the commission
as follows:
(1)(A) Beginning July 1,
2002 2009, a county and the
incorporated municipalities within that county shall receive
two
four percent of the net terminal income generated by limited video
lottery terminals located within the county;
(B) From this
two four percent of net terminal income, each
municipality shall receive a share that bears the same proportion
to the total
two four percent of net terminal income as the population of the municipality bears to the total population of the
county as determined by the most recent decennial United States
census of population, and the county shall receive the remaining
portion of the
two four percent of net terminal income; and
(2) Any remaining funds shall be deposited into the State
Excess Lottery Revenue Fund established in section eighteen-a,
article twenty-two of this chapter.
(c) The licensed operators and limited video lottery retailers
shall receive the balance of gross terminal income remaining after
deduction of the state's
and retailers' share shares as calculated
pursuant to this section.
NOTE: The purpose of this bill is to reallocate the proceeds
from limited video lottery by increasing the percentages payable to
counties, municipalities and retailers
.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.