H. B. 4519
(By Delegates T. Walker, Doyle, Blair, Duke,
Cowles and J. Miller)
[Introduced
February 16, 2010
; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §19-23-10, §19-23-13 and §19-23-13b of
the Code of West Virginia, 1931, as amended; to amend and
reenact §29-22A-10 of said code; and to amend and reenact
§29-22C-27 of said code, all relating to requiring all of an
established $11 million Racetrack Video Lottery Fund to be
transferred into the existing West Virginia Racing Commission
Special Account - Unredeemed Pari-Mutuel Tickets account, to
be used to pay certain current and unpaid debt payments and,
when those debt obligations have been fully met, all moneys
deposited in the Video Lottery Fund will fund the Workers'
Compensation debt service until that debt is retired; placing
certain funds in the West Virginia Racing Commission Special
Account - West Virginia Greyhound Breeding Development Fund;
removing a provision concerning the Thoroughbred Development
Fund; eliminating a $200,000 annual payment for providing
health and disability benefits to jockeys and their
dependents; eliminating an obsolete provision concerning a special trust fund; providing that the Racing Commission may
use current funds to pay for previously incurred obligations;
requiring certain obligations be paid on an annual basis, some
on a monthly basis and others on a weekly basis; certain
receipts from all thoroughbred and greyhound racetracks be
divided on a pro rata basis between those racetracks; and
modifying a current treasury account to include funds for
greyhound adoption, spaying and neutering.
Be it enacted by the Legislature of West Virginia:
That §19-23-10, §19-23-13 and §19-23-13b of the Code of West
Virginia, 1931, as amended, be amended and reenacted; that §29-22A-
10 of said code be amended and reenacted; and that §29-22C-27 of
said code be amended and reenacted, all to read as follows:
CHAPTER 19. AGRICULTURE.
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.
(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,
and educational 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,
and educational and
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,
and educational and 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,
and 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,
and 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.
§19-23-13. Disposition of funds for payment of outstanding and
unredeemed pari-mutuel tickets; publication of
notice; irredeemable tickets; stake races for dog
tracks.
(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 this subsection. 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. The moneys in the West
Virginia Racing Commission special account - unredeemed pari-mutuel
tickets shall be expended as follows:
(1) 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
(2) 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
(3) 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;
(4) To those horse racing licensees not participating in the
Thoroughbred Development Fund authorized in section thirteen-b of
this article, the unexpended balance of the licensee's account not expended as provided in subdivisions (1), (2) and (3) of this
subsection: Provided, That all moneys distributed under this
subdivision shall be expended solely for capital improvements at
the licensee's track: Provided, however, That the capital
improvements must be approved, in writing, by the West Virginia
Racing Commission before funds are expended by the licensee for
that capital improvement; and
(4) The Racing Commission shall make all current and past
payments required by subdivisions (1), (2) and (3) of this
subsection on a monthly basis. The commission shall make all
current and past payments required by paragraphs (A) and (B),
subdivision (6) of this subsection on an annual basis. Obligations
incurred pursuant to subdivisions (1), (2) and (3) of this
subsection from previous years may be paid with current funds.
Obligations incurred pursuant to paragraphs (A) and (B),
subdivision (6) of this subsection for the years 2007, 2008 and
2009 shall be paid from those funds established by subdivision (6)
of this subsection. These funds are to be placed in the West
Virginia Racing Commission Special Account - West Virginia
Greyhound Breeding Development Fund established by subsection (d),
section ten of this article. These funds will be disbursed as
supplemental purses on a pro rata basis beginning July 1, 2010 and
ending on June 30, 2011;
(5) In order that all thoroughbred and greyhound tracks
receive equal funding to each purse accounts, each track shall receive the same amount as the track that receives the highest
amount pursuant to subdivisions (1), (2) and (3) of this
subsection. To this end the Racing Commission shall, after making
the payments required by those subdivisions, direct funds to make
up those differences, if any, to each track's regular purse funds
on a weekly basis; and
(5) (6) When the moneys in the special account, known as the
West Virginia Racing Commission special account - unredeemed pari-
mutuel tickets will more than satisfy the requirements of
subdivisions (1), (2)
and (3)
(4) of this subsection, the West
Virginia Racing Commission shall have the authority to expend the
excess moneys from unredeemed horse racing pari-mutuel tickets as
purse money in any race conditioned exclusively for West Virginia
bred or sired horses, and to expend the excess moneys from
unredeemed dog racing pari-mutuel tickets in supplementing purses
and establishing stake races and dog racing handicaps at the dog
tracks:
Provided, That the $11 million as authorized by paragraph
(A), subdivision (9), subsection (c), section ten, article twenty-
two-a, chapter twenty-nine of this code shall be used in the
following manner: first, for the payment of current obligations,
those equal funding amounts established by subdivision (5) of this
subsection and, over a two year period, any unpaid debt payments
owed pursuant to subdivisions (1), (2) and (3) of this subsection
and paragraphs (A) and (B), subdivision (6) of this subsection; and
second, all remaining funds be used to reduce the workers' compensation debt or to pay debt service on bonds sold for the
purpose of reducing or paying the Workers' Compensation debt in
accordance with section five, article two-d, chapter twenty-three
of this code: Provided, however, That at such time the
aforementioned Workers' Compensation debt has been extinguished any
remaining amount, after the financial requirements of this section
have been met, shall be deposited in the appropriate regular purse
fund for each track, Provided further, That subject to the
availability of funds, the commission shall, after the requirements
of subdivisions (1), (2)
and (3),
and (4) of this subsection have
been satisfied.
(A) Transfer annually $200,000 to the West Virginia Racing
Commission special account - West Virginia Greyhound Breeding
Development Fund;
and
(B) Transfer annually $200,000 into a separate account to be
used for stakes races for West Virginia bred greyhounds at dog
racetracks.
and
(C) Transfer annually $200,000 to a trust maintained and
administered by the organization which is recognized by the West
Virginia Racing Commission, pursuant to a legislative rule proposed
for promulgation by the commission and authorized by the
Legislature, as the representative of the majority of the active
jockeys in West Virginia, for the purpose of providing health and
disability benefits to eligible active or disabled West Virginia
jockeys and their dependents in accordance with eligibility criteria established by said organization. For purposes of this
section in determining health benefits, an eligible active jockey
is one who rides at least one hundred mounts per calendar year of
which fifty-one must be in the State of West Virginia: Provided,
That a jockey is not eligible for health benefits if he or she
receives health benefits from any other state; and
(D) After all payments to satisfy the requirements of (A), (B)
and (C) of this proviso have been satisfied, the commission shall
have authority to transfer $150,000 left from all uncashed pari-
mutuel tickets to the trust maintained and administered by the
organization which is recognized by the West Virginia Racing
Commission, pursuant to legislative rule proposed for promulgation
by the commission and authorized by the Legislature as the
representative of the majority of the active jockeys in West
Virginia.
(c) The commission shall submit to the Legislative Auditor a
quarterly report and accounting of the income, expenditures and
unobligated balance in the special account created by this section
known as the West Virginia Racing Commission special account -
unredeemed pari-mutuel tickets.
(d) 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.
(e) 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.
(f) The Racing Commission is authorized to promulgate
emergency rules
prior to July 1, 2004, to incorporate
the any
revisions to this article.
enacted during the 2004 regular
legislative session.
§19-23-13b. West Virginia Thoroughbred Development Fund;
distribution; restricted races; nonrestricted
purse supplements; preference for West Virginia
accredited thoroughbreds.
(a) The Racing Commission shall deposit moneys required to be
withheld by an association or licensee in subsection (b), section
nine of this article in a banking institution of its choice in a
special account to be known as "West Virginia Racing Commission
Special Account -- West Virginia Thoroughbred Development Fund"
:
Provided, That after the West Virginia Lottery Commission has
divided moneys between the West Virginia Thoroughbred Development
Fund and the West Virginia Greyhound Breeding Development Fund
pursuant to the provisions of sections ten and ten-b, article
twenty-two-a, chapter twenty-nine of this code, the Racing
Commission shall, beginning October 1, 2005, deposit the remaining
moneys required to be withheld from an association or licensee designated to the Thoroughbred Development Fund under the
provisions of subsection (b), section nine of this article,
subdivision (3), subsection (e), section twelve-b of this article,
subsection (b), section twelve-c of this article, paragraph (B),
subdivision (3), subsection (b), section thirteen-c of this article
and sections ten and ten-b, article twenty-two-a, chapter twenty-
nine of this code into accounts for each thoroughbred racetrack
licensee with a banking institution of its choice with a separate
account for each association or licensee. Each separate account
shall be a special account to be known as "West Virginia Racing
Commission Special Account - West Virginia Thoroughbred Development
Fund" and shall name the licensee for which the special account has
been established:
Provided, however, That the Racing Commission
shall deposit all moneys paid into the Thoroughbred Development
Fund by 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 from July 8, 2005 until
the effective date of the amendment to this section passed during
the fourth extraordinary session of the seventy-seventh Legislature
shall be paid into the purse fund of that thoroughbred racetrack
licensee:
Provided further, That the moneys paid into the
Thoroughbred Development Fund by 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, shall be transferred into that licensee's purse fund until April 1, 2006. Notice of the amount, date and place of the
deposits shall be given by the Racing Commission, in writing, to
the State Treasurer. The purpose of the funds is to promote better
breeding and racing of thoroughbred horses in the state through
awards and purses for accredited breeders/raisers, sire owners and
thoroughbred race horse owners:
And provided further, That five
percent of the deposits required to be withheld by an association
or licensee in subsection (b), section nine of this article shall
be placed in a special revenue account hereby created in the State
Treasury called the "Administration and Promotion Account".
(b) The Racing Commission is authorized to expend the moneys
deposited in the administration and promotion account at times and
in amounts as the commission determines to be necessary for
purposes of administering and promoting the thoroughbred
development program:
Provided, That during any fiscal year 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 and promotion of the program. The commission shall
make an annual report to the Legislature on the status of the
administration and promotion account, including the previous year's
expenditures and projected expenditures for the next year.
(c) The fund or funds and the account or accounts established
in subsection (a) of this section shall operate on an annual basis.
(d) Funds in the Thoroughbred Development Fund or funds in the
separate accounts for each association or licensee as provided in
subsection (a) of this section shall be expended for awards and
purses except as otherwise provided in this section. Annually, the
first $800,000 shall be available for distribution for a minimum of
fourteen accredited stakes races at a racetrack which has
participated in the West Virginia Thoroughbred Development Fund for
a period of more than four consecutive calendar years prior to
December 31, 1992. The weights for all accredited stakes races
shall be weight for age. One of the stakes races shall be the West
Virginia Futurity and the second shall be the Frank Gall Memorial
Stakes. For the purpose of participating in the West Virginia
Futurity only, all mares, starting with the breeding season
beginning the first day of February through July 31, 2004, and each
successive breeding season thereafter shall be bred back that year
to an accredited West Virginia stallion only which is registered
with the West Virginia Thoroughbred Breeders Association. The
accredited stake races shall be chosen by the committee set forth
in subsection (f) of this section.
(e) Awards and purses shall be distributed as follows:
(1) The breeders/raisers of accredited thoroughbred horses
that earn a purse at a participating West Virginia meet shall
receive a bonus award calculated at the end of the year as a percentage of the fund dedicated to the breeders/raisers, which
shall be sixty percent of the fund available for distribution in
any one year. The total amount available for the
breeders'/raisers' awards shall be distributed according to the
ratio of purses earned by an accredited race horse to the total
amount earned in the participating races by all accredited race
horses for that year as a percentage of the fund dedicated to the
breeders/raisers. However, no breeder/raiser may receive from the
fund dedicated to breeders'/raisers' awards an amount in excess of
the earnings of the accredited horse at West Virginia meets. In
addition, should a horse's breeder and raiser qualify for the same
award on the same horse, they will each be awarded one half of the
proceeds. The bonus referred to in this subdivision may only be
paid on the first $100,000 of any purse and not on any amounts in
excess of the first $100,000.
(2) The owner of an accredited West Virginia sire of an
accredited thoroughbred horse that earns a purse in any race at a
participating West Virginia meet shall receive a bonus award
calculated at the end of the year as a percentage of the fund
dedicated to sire owners, which shall be fifteen percent of the
fund available for distribution in any one year. The total amount
available for the sire owners' awards shall be distributed
according to the ratio of purses earned by the progeny of
accredited West Virginia stallions in the participating races for
a particular stallion to the total purses earned by the progeny of all accredited West Virginia stallions in the participating races.
However, no sire owner may receive from the fund dedicated to sire
owners an amount in excess of thirty-five percent of the accredited
earnings for each sire. The bonus referred to in this subdivision
shall only be paid on the first $100,000 of any purse and not on
any amounts in excess of the first $100,000.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any participating race at a West Virginia meet shall
receive a restricted purse supplement award calculated at the end
of the year, which shall be twenty-five percent of the fund
available for distribution in any one year, based on the ratio of
the earnings in the races of a particular race horse to the total
amount earned by all accredited race horses in the participating
races during that year as a percentage of the fund dedicated to
purse supplements. However, the owners may not receive from the
fund dedicated to purse supplements an amount in excess of thirty-
five percent of the total accredited earnings for each accredited
race horse. The bonus referred to in this subdivision shall only
be paid on the first $100,000 of any purse and not on any amounts
in excess of the first $100,000.
(4) In no event may purses earned at a meet held at a track
which did not make a contribution to the Thoroughbred Development
Fund out of the daily pool on the day the meet was held qualify or
count toward eligibility for an award under this subsection.
(5) Any balance in the breeders/raisers, sire owners and purse supplement funds after yearly distributions shall first be used to
fund the races established in subsection (f) of this section. Any
amount not so used shall revert into the general account of the
Thoroughbred Development Fund for each racing association or
licensee for distribution in the next year.
Distribution shall be made February 15 for the preceding year's
achievements.
(f) (1) Each pari-mutuel thoroughbred horse track shall provide
at least one restricted race per racing day:
Provided, That
sufficient horses and funds are available. For purposes of this
subsection, there are sufficient horses if there are at least seven
single betting interests received for the race:
Provided further,
however, That, if sufficient horses and funds are available, any
thoroughbred horse racetrack whose licensee participated in the
Thoroughbred Development Fund for at least four consecutive calendar
years prior to December 31, 1992, shall provide two restricted races
per racing day, at least one of which may be split at the discretion
of the racing secretary. The restricted race required by this
section must be included in the first nine races written in the
condition book for that racing day.
(2) The restricted races established in this subsection shall
be administered by a three-member committee at each track consisting
of:
(A) The racing secretary
at each track;
(B) A member appointed by the authorized representative of a majority of the owners and trainers at the thoroughbred track; and
(C) A member appointed by the West Virginia Thoroughbred
Breeders Association.
(3) Restricted races shall be funded by each racing association
from:
(A) Moneys placed in the General Purse Fund:
Provided, That
a thoroughbred horse racetrack which did not participate in the West
Virginia Thoroughbred Development Fund for a period of more than
four consecutive years prior to December 31, 1992, may fund
restricted races in an amount not to exceed $1 million per year.
(B) Moneys as provided in subdivision (5), subsection (e) of
this section, which shall be placed in a special fund called the
"West Virginia Accredited Race Fund".
(4) The racing schedules, purse amounts and types of races are
subject to the approval of the West Virginia Racing Commission.
(5) If less than seventy-five percent of the restricted races
required by this subsection fail to receive enough entries to race,
the Racing Commission shall, on a quarterly basis, dedicate funds
in each fund back to the General Purse Fund of the racing
association or licensee:
Provided, That no moneys may be dedicated
back to a General Purse Fund if the dedication would leave less than
$250,000 in the fund.
(g) As used in this section, "West Virginia bred-foal" means
a horse that was born in the State of West Virginia.
(h) To qualify for the West Virginia Accredited Race Fund, the breeder must qualify under one of the following:
(1) The breeder of the West Virginia bred-foal is a West
Virginia resident;
(2) The breeder of the West Virginia bred-foal is not a West
Virginia resident, but keeps his or her breeding stock in West
Virginia year round; or
(3) The breeder of the West Virginia bred-foal is not a West
Virginia resident and does not qualify under subdivision (2) of this
subsection, but either the sire of the West Virginia bred-foal is
a West Virginia stallion, or the mare is covered only by a West
Virginia accredited stallion or stallions before December 31 of the
calendar year following the birth of that West Virginia bred-foal.
(i) From July 1, 2001, West Virginia accredited thoroughbred
horses have preference for entry in all accredited races at a
thoroughbred race track at which the licensee participates in the
West Virginia Thoroughbred Development Fund.
(j) Beginning July 1, 2006, 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 must have a West Virginia Thoroughbred Racing Breeders
Program.
(k) The Commission shall, during calendar year 2009, conduct
a study of the adequacy of funding provided for the Thoroughbred
Development Fund at any thoroughbred racetrack which has not
participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to
December 31, 1992, and shall report its findings and recommendations
to the Joint Committee on Government and Finance on or before
December 1, 2009.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§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, 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, 2006, 2007, 2008, 2009, 2010 and 2011,
the term "actual costs and expenses" shall include transfers of no
more than $20 million in any year to the Revenue Center Construction
Fund created by subsection (l), section eighteen, article twenty-two
of this chapter for the purpose of constructing a state office
building. 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.
(c) Net terminal income 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 the 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,
that $11 million shall be deposited in the West Virginia
Racing Commission Special Account - Unredeemed Pari-Mutuel Tickets
account as established by subsection (b), section thirteen, article
twenty-three, chapter nineteen of this code and distributed in
accordance with subdivision (6) of that subsection. 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 for 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 for in the amounts required by 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
for 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 for 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 Progr am 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 twenty-two-a 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.
ARTICLE 22C. WEST VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT.
§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
equally 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.
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 capital improvements;
(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, which 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 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 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; 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
equally 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; 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.
(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.
NOTE: The purpose of this bill is to require all of an
established $11 million Racetrack Video Lottery Fund to be
transferred into the existing West Virginia Racing Commission
Special Account - Unredeemed Pari-Mutuel Tickets account to be used
to pay certain current and unpaid debt payments. The bill also
provides that when those debt obligations have been fully met all
monies moneys deposited in the Video Lottery Fund will be used for
the Workers' Compensation debt service until that debt is retired.
The bill removes a provision concerning the Thoroughbred Development
Fund. The bill eliminates a $200,000 annual payment for providing
health and disability benefits to jockeys and their dependents and
also eliminates an obsolete provision concerning a Special Trust
Fund. The bill further provides that the Racing Commission may use
current funds to pay previously incurred obligations. Additionally,
the bill requires certain obligations be paid on a monthly basis and
that certain receipts from all thoroughbred racetracks be divided on
a pro rata basis between those racetracks. The bill modifies a
current treasury account to include funds for greyhound adoption,
spaying and neutering.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.