Senate Bill No. 18
(By Senator Snyder)
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[Introduced February 14, 2001; referred to the Committee on the
Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact section ten, article twenty-two-a,
chapter twenty-nine of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
the distribution of proceeds from net terminal income of
racetrack video lottery proceeds; and providing funds for
health, disability and retirement benefits for eligible
active, disabled and retired West Virginia jockeys and their
dependents.
Be it enacted by the Legislature of West Virginia:
That section nine, article twenty-three, chapter nineteen of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted; and that section ten, article twenty-two-a, chapter twenty-nine of said code, be
amended and reenacted, all to read as follows:
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
PART VI. PARI-MUTUEL SYSTEM OF WAGERING AUTHORIZED;
COMMISSIONS DEDUCTED FROM PARI-MUTUEL POOLS.
§19-23-9. Pari-mutuel system of wagering authorized; licensee
authorized to deduct commissions from pari-mutuel pools;
retention of breakage; auditing; minors.
(a) The pari-mutuel system of wagering upon the results of
any horse or dog race at any horse or dog race meeting conducted
or held by any licensee is hereby authorized, if and only if such
pari-mutuel wagering is conducted by the licensee within the
confines of the licensee's horse racetrack or dog racetrack and
the provisions of section one, article ten, chapter sixty-one of
this code relating to gaming, shall not apply to the pari-mutuel
system of wagering in manner and form as provided for in this
article at any horse or dog race meeting within this state where
horse or dog racing shall be permitted for any purse by any
licensee. A licensee shall permit or conduct only the pari-
mutuel system of wagering within the confines of the licensee's racetrack at which any horse or dog race meeting is conducted or
held.
(b) A licensee is hereby expressly authorized to deduct a
commission from the pari-mutuel pools, as follows:
(1) The commission deducted by any licensee from the pari-
mutuel pools on thoroughbred horse racing, except from
thoroughbred horse racing pari-mutuel pools involving what is
known as multiple betting in which the winning pari-mutuel ticket
or tickets are determined by a combination of two or more winning
horses, shall not exceed seventeen and one-fourth percent of the
total of the pari-mutuel pools for the day. Out of the
commission, as is mentioned in this subdivision, the licensee:
(i) Shall pay the pari-mutuel pools tax provided for in
subsection (b), section ten of this article; (ii) shall make a
deposit into a special fund to be established by the licensee and
to be used for the payment of regular purses offered for
thoroughbred racing by the licensee, which deposits out of pari-
mutuel pools for each day during the months of January, February,
March, October, November and December shall be seven and three
hundred seventy-five one-thousandths percent of the pari-mutuel
pools and which, out of pari-mutuel pools for each day during all other months, shall be six and eight hundred seventy-five
one-thousandths percent of the pari-mutuel pools, which shall
take effect beginning fiscal year one thousand nine hundred
ninety; (iii) shall, after allowance for the exclusion given by
subsection (b), section ten of this article, make a deposit into
a special fund to be established by the racing commission and to
be used for the payment of breeders, awards and capital
improvements as authorized by section thirteen-b of this article,
which deposits out of pari-mutuel pools shall from the effective
date of this section and for fiscal year one thousand nine
hundred eighty-five, be four-tenths percent; for fiscal year one
thousand nine hundred eighty-six, be seven-tenths percent; for
fiscal year one thousand nine hundred eighty-seven, be one
percent; for fiscal year one thousand nine hundred eighty-eight,
be one and one-half percent; and for fiscal year one thousand
nine hundred eighty-nine, and each year thereafter, be two
percent of the pools; (iv) shall annually pay
three hundred fifty
thousand dollars into a special fund established by the racing
commission for payment into a pension plan established by the
racing commission for all exercise boys, trainers, grooms and
stable foreman licensed by the racing commission to participate in horse racing in this state and their dependents, who
participate in racing at thoroughbred race tracks that have
participated in the thoroughbred development fund created in
section thirteen-b of this article for period of more than four
consecutive years prior to the thirty-first day of December, one
thousand nine hundred ninety-two; and (iv) (v) shall pay one
tenth of one percent of the pari-mutuel pools into the general
fund of the county commission of the county in which the
racetrack is located, except if within a municipality, then to
the municipal general fund. The remainder of the commission
shall be retained by the licensee.
The commission deducted by any licensee from the pari-mutuel
pools on thoroughbred horse racing involving what is known as
multiple betting in which the winning pari-mutuel ticket or
tickets are determined by a combination of two winning horses
shall not exceed nineteen percent and by a combination of three
or more winning horses shall not exceed twenty-five percent of
the total of such pari-mutuel pools for the day. Out of the
commission, as is mentioned in this paragraph, the licensee: (i)
Shall pay the pari-mutuel pools tax provided for in subsection
(b), section ten of this article; (ii) shall make a deposit into a special fund to be established by the licensee and to be used
for the payment of regular purses offered for thoroughbred racing
by the licensee, which deposits out of pari-mutuel pools for each
day during the months of January, February, March, October,
November and December for pools involving a combination of two
winning horses shall be eight and twenty-five one-hundredths
percent and out of pari-mutuel pools for each day during all
other months shall be seven and seventy-five one-hundredths
percent of the pari-mutuel pools; and involving a combination of
three or more winning horses for the months of January, February,
March, October, November and December the deposits out of the
fund shall be eleven and twenty-five one-hundredths percent of
the pari-mutuel pools; and which, out of pari-mutuel pools for
each day during all other months, shall be ten and seventy-five
one-hundredths percent of the pari-mutuel pools; (iii) shall,
after allowance for the exclusion given by subsection (b),
section ten of this article, make a deposit into a special fund
to be established by the racing commission and to be used for the
payment of breeders' awards and capital improvements as
authorized by section thirteen-b of this article, which deposits
out of pari-mutuel pools shall from the effective date of this section and for fiscal year one thousand nine hundred eighty-
five, be four-tenths percent; for fiscal year one thousand nine
hundred eighty-six, be seven-tenths percent; for fiscal year one
thousand nine hundred eighty-seven, be one percent; for fiscal
year one thousand nine hundred eighty-eight, be one and one-half
percent; and for fiscal year one thousand nine hundred eighty-
nine, and each year thereafter, be two percent of the pools; and
(iv) shall pay one tenth of one percent of the pari-mutuel pools
into the general fund of the county commission of the county in
which the racetrack is located, except if within a municipality,
then to the municipal general fund. The remainder of the
commission shall be retained by the licensee.
The commission deducted by the licensee under this
subdivision may be reduced only by mutual agreement between the
licensee and a majority of the trainers and horse owners licensed
by subsection (a), section two of this article or their
designated representative. The reduction in licensee commissions
may be for a particular race, racing day or days or for a horse
race meeting. Fifty percent of the reduction shall be retained
by the licensee from the amounts required to be paid into the
special fund established by the licensee under the provisions of this subdivision. The racing commission shall promulgate any
reasonable rules and regulations that are necessary to implement
the foregoing provisions.
(2) The commission deducted by any licensee from the pari-
mutuel pools on harness racing shall not exceed seventeen and
one-half percent of the total of the pari-mutuel pools for the
day. Out of the commission the licensee shall pay the pari-
mutuel pools tax provided for in subsection (c), section ten of
this article and shall pay one tenth of one percent into the
general fund of the county commission of the county in which the
racetrack is located, except if within a municipality, then to
the municipal general fund. The remainder of the commission
shall be retained by the licensee.
(3) The commission deducted by any licensee from the pari-
mutuel pools on dog racing, except from dog racing pari-mutuel
pools involving what is known as multiple betting in which the
winning pari-mutuel ticket or tickets are determined by a
combination of two or more winning dogs, shall not exceed sixteen
and thirty one-hundredths percent of the total of all pari-mutuel
pools for the day. The commission deducted by any licensee from
the pari-mutuel pools on dog racing involving what is known as multiple betting in which the winning pari-mutuel ticket or
tickets are determined by a combination of two winning dogs shall
not exceed nineteen percent, by a combination of three winning
dogs shall not exceed twenty percent, and by a combination of
four or more winning dogs shall not exceed twenty-one percent of
the total of such pari-mutuel pools for the day. The foregoing
commissions are in effect for the fiscal years one thousand nine
hundred ninety and one thousand nine hundred ninety-one.
Thereafter, the commission shall be at the percentages in effect
prior to the effective date of this article unless the
Legislature, after review, determines otherwise. Out of the
commissions, the licensee shall pay the pari-mutuel pools tax
provided for in subsection (d), section ten of this article and
one tenth of one percent of such pari-mutuel pools into the
general fund of the county commission of the county in which the
racetrack is located. In addition, out of the commissions, if
the racetrack is located within a municipality, then the licensee
shall also pay three tenths of one percent of the pari-mutuel
pools into the general fund of the municipality; or, if the
racetrack is located outside of a municipality, then the licensee
shall also pay three tenths of one percent of the pari-mutuel pools into the state road fund for use by the division of
highways in accordance with the provisions of this subdivision.
The remainder of the commission shall be retained by the
licensee.
For the purposes of this section, "municipality" means and
includes any Class I, Class II and Class III city and any Class
IV town or village incorporated as a municipal corporation under
the laws of this state prior to the first day of January, one
thousand nine hundred eighty-seven.
Each dog racing licensee, when required by the provisions of
this subdivision to pay a percentage of its commissions to the
state road fund for use by the division of highways, shall
transmit the required funds, in such manner and at such times as
the racing commission shall by procedural rule direct, to the
state treasurer for deposit in the state treasury to the credit
of the division of highways state road fund. All funds collected
and received in the state road fund pursuant to the provisions of
this subdivision shall be used by the division of highways in
accordance with the provisions of article seventeen-a, chapter
seventeen of this code for the acquisition of right-of-way for,
the construction of, the reconstruction of and the improvement or repair of any interstate or other highway, secondary road, bridge
and toll road in the state. If on the first day of July, one
thousand nine hundred eighty-nine, any area encompassing a dog
racetrack has incorporated as a Class I, Class II or Class III
city or as a Class IV town or village, whereas such city, town or
village was not incorporated as such on the first day of January,
one thousand nine hundred eighty-seven, then on and after the
first day of July, one thousand nine hundred eighty-nine, any
balances in the state road fund existing as a result of payments
made under the provisions of this subdivision may be used by the
state road fund for any purpose for which other moneys in the
fund may lawfully be used, and in lieu of further payments to the
state road fund, the licensee of a racetrack which is located in
the municipality shall thereafter pay three tenths of one percent
of the pari-mutuel pools into the general fund of the
municipality. If no incorporation occurs before the first day of
July, one thousand nine hundred eighty-nine, then payments to the
state road fund shall thereafter continue as provided for under
the provisions of this subdivision.
A dog racing licensee, before deducting the commissions
authorized by this subdivision, shall give written notification to the racing commission not less than thirty days prior to any
change in the percentage rates for the commissions. The racing
commission shall prescribe blank forms for filing the
notification. The notification shall disclose the following:
(A) The revised commissions to be deducted from the pari-mutuel
pools each day on win, place and show betting and on different
forms of multiple bettings; (B) the dates to be included in the
revised betting; (C) such other information as may be required by
the racing commission.
The licensee shall establish a special fund to be used only
for capital improvements or long-term debt amortization or both:
Provided, That any licensee, heretofore licensed for a period of
eight years prior to the effective date of the amendment made to
this section during the regular session of the Legislature held
in the year one thousand nine hundred eighty-seven, shall
establish the special fund to be used only for capital
improvements or physical plant maintenance, or both, at the
licensee's licensed facility or at the licensee's commonly owned
racing facility located within this state. Deposits made into
the funds shall be in an amount equal to twenty-five percent of
the increased rate total over and above the applicable rate in effect as of the first day of January, one thousand nine hundred
eighty-seven, of the pari-mutuel pools for the day. Any amount
deposited into the funds must be expended or liability therefor
incurred within a period of two years from the date of deposit.
Any funds not expended shall be transferred immediately into the
state general fund after expiration of the two-year period.
The licensee shall make a deposit into a special fund
established by the licensee and used for payment of regular
purses offered for dog racing, which deposits out of the
licensee's commissions for each day shall be three and seventy-
five one-hundredths percent of the pari-mutuel pools.
The licensee shall further establish a special fund to be
used exclusively for marketing and promotion programs; the funds
shall be in an amount equal to five percent over and above the
applicable rates in effect as of the first day of January, one
thousand nine hundred eighty-seven of the total pari-mutuel pools
for the day.
The racing commission shall prepare and transmit annually to
the governor and the Legislature a report of the activities of
the racing commission under this subdivision. The report shall
include a statement of: The amount of commissions retained by licensees; the amount of taxes paid to the state; the amounts
paid to municipalities, counties and the division of highways dog
racing fund; the amounts deposited by licensees into special
funds for capital improvements or long-term debt amortization and
a certified statement of the financial condition of any licensee
depositing into the fund; the amounts paid by licensees into
special funds and used for regular purses offered for dog racing;
the amounts paid by licensees into special funds and used for
marketing and promotion programs; and such other information as
the racing commission may consider appropriate for review.
The racing commission shall report to the governor,
president of the Senate, speaker of the House of Delegates and
the Legislature on or before the thirty-first day of December,
one thousand nine hundred ninety-three, on the effects of the
amendments to this article by the acts of the Legislature,
regular session, one thousand nine hundred eighty-seven, on dog
racing licensees and pari-mutuel taxation for use by the
Legislature in review of the amendments.
(c) In addition to any commission, a licensee of horse race
or dog race meetings shall also be entitled to retain the
legitimate breakage, which shall be made and calculated to the dime, and from the breakage, the licensee of a horse race meeting
(excluding dog race meetings), shall deposit daily fifty percent
of the total of the breakage retained by the licensee into the
special fund created pursuant to the provisions of subdivision
(1), subsection (b) of this section for the payment of regular
purses.
(d) The director of audit, and any other auditors employed
by the racing commission who are also certified public
accountants or experienced public accountants, shall have free
access to the space or enclosure where the pari-mutuel system of
wagering is conducted or calculated at any horse or dog race
meeting for the purpose of ascertaining whether or not the
licensee is deducting and retaining only a commission as provided
in this section and is otherwise complying with the provisions of
this section. They shall also, for the same purposes only, have
full and free access to all records and papers pertaining to the
pari-mutuel system of wagering and shall report to the racing
commission in writing, under oath, whether or not the licensee
has deducted and retained any commission in excess of that
permitted under the provisions of this section or has otherwise
failed to comply with the provisions of this section.
(e) No licensee shall permit or allow any individual under
the age of eighteen years to wager at any horse or dog racetrack,
knowing or having reason to believe that the individual is under
the age of eighteen years.
(f) Notwithstanding the foregoing provisions of subdivision
(1), subsection (b) of this section, to the contrary, a
thoroughbred licensee qualifying for and paying the alternate
reduced tax on pari-mutuel pools provided in section ten of this
article shall distribute the commission authorized to be deducted
by subdivision (1), subsection (b) of this section as follows:
(i) The licensee shall pay the alternate reduced tax provided in
section ten of this article; (ii) the licensee shall pay one
tenth of one percent of the pari-mutuel pools into the general
fund of the county commission of the county in which the
racetrack is located, except if within a municipality, then to
the municipal general fund; (iii) the licensee shall pay one half
of the remainder of the commission into the special fund
established by the licensee and to be used for the payment of
regular purses offered for thoroughbred racing by the licensee;
and (iv) the licensee shall retain the amount remaining after
making the payments required in this subsection.
(g) Each kennel which provides or races dogs owned or leased
by others shall furnish to the commission a surety bond in an
amount to be determined by the commission to secure the payment
to the owners or lessees of the dogs the portion of any purse
owed to the owner or lessee.
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 such the deduction shall be 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.
(c) Net terminal income shall be divided as set out in this
subsection. The licensed racetrack's share shall be 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 twenty-nine and
one-half percent of net terminal income, which shall be paid into
the general revenue fund of the state to be appropriated by the
Legislature;
(2) 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;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income: Provided,
That:
(A) Beginning the first day of July, one thousand nine
hundred ninety-nine, and thereafter, any amount in excess of the
two percent received during fiscal year one thousand nine hundred
ninety-nine by a county in which a racetrack is located that has
participated in the West Virginia thoroughbred development fund
since on or before the first day of January, one thousand nine
hundred ninety-nine, 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 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) Beginning the first day of July, one thousand nine
hundred ninety-nine, and thereafter, any amount in excess of the
two percent received during fiscal year one thousand nine hundred
ninety-nine 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 the first day of January, one
thousand nine hundred ninety-nine, 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, article twenty-three, chapter
nineteen of this code shall receive an equal share of a total of
not less than one and one-half percent of the net terminal
income: Provided, That for any racetrack which does not have a
breeder's program supported by the thoroughbred development fund
or the greyhound breeding development fund, the one and one-half
percent provided for in this subdivision 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
subdivision (2) of this subsection and article twenty-three,
chapter nineteen of this code;
(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-seven 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; and
(9) 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
twenty thousand dollars 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, one
hundred thousand dollars 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, and
not more than twenty thousand dollars shall be deposited in the
"John F. 'Jack' Bennett Fund": Provided, however, That 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: Provided further, That 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
.
(10) One half of one percent of net terminal income, not to
exceed three hundred fifty thousand dollars, shall be paid to the
"Jockeys' Guild Health and Welfare Trust" to be maintained and
administered by "Jockeys' Guild, Inc.", for the purpose of
providing health, disability and retirement benefits to eligible
active, disabled and retired West Virginia jockeys and their dependents in accordance with eligibility criteria established by
"Jockeys' Guild, Inc.": Provided, That any amount exceeding
three hundred fifty thousand dollars shall be received and paid
by the commission to the state general revenue 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,. which 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 must 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 such 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 must 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 23. HORSE AND DOG RACING.
§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. 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; 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; and
(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
(5) 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), (3) and (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 subject to the availability of funds, the
commission shall, after the requirements of subdivisions (1),
(2), (3) and (4) of this subsection have been satisfied:
(A) Transfer annually two hundred thousand dollars to the
West Virginia racing commission special account - West Virginia
greyhound breeding development fund; and
(B) Transfer annually two hundred thousand dollars into a
separate account to be used for stakes races for West Virginia
bred greyhounds at dog racetracks.
(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.
§19-23-13b. West Virginia thoroughbred development fund;
distribution; restricted races; nonrestricted purse
supplements.
(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." Notice of the amount, date and place of the
deposit shall be given by the racing commission, in writing, to
the state treasurer. The purpose of the fund 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. A further objective
of the fund is to aid in the rejuvenation and development of the
present horse tracks now operating in West Virginia for capital
improvements, operations or increased purses: Provided, 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 such
times and in such 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 and the account established in subsection (a)
of this section shall operate on an annual basis.
(d) Funds in the thoroughbred development fund shall be
expended for awards and purses except as otherwise provided in
this section. Annually, the first one hundred thousand dollars
of the fund shall be available for distribution for a maximum of
four stakes races. One of these races shall be the West Virginia
futurity and the second shall be the Frank Gall memorial stakes.
The remaining races may be chosen by the committee set forth in
subsection(g) 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 any 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 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 (1) shall only be paid
on the first one hundred thousand dollars of any purse, and not
on any amounts in excess thereof.
(2) The owner of a West Virginia sire of an accredited
thoroughbred horse that earns a purse in any race at a 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 races for a particular stallion to the total purses earned by the progeny of all accredited West Virginia
stallions in the 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 (2) shall only be paid on the
first one hundred thousand dollars of any purse, and not on any
amounts in excess thereof.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any 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 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 one hundred thousand dollars of any purse, and
not on any amounts in excess thereof.
(4) In no event shall 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 (e).
(5) Any balance in the breeders/raisers, sire owners and
purse supplement funds after yearly distributions shall first be
utilized to fund the races established in subsection (g) of this
section. Any amount not so used shall revert back into the
general account of the thoroughbred development fund for
distribution in the next year.
Distribution shall be made on the fifteenth day of each
February for the preceding year's achievements.
(f) The remainder, if any, of the thoroughbred development
fund that is not available for distribution in the program
provided for in subsection (e) of this section in any one year is
reserved for regular purses, marketing expenses and for capital
improvements in the amounts and under the conditions provided in
this subsection (f).
(1) Fifty percent of the remainder shall be reserved for
payments into the regular purse fund established in subsection (b), section nine of this article.
(2) Up to five hundred thousand dollars per year shall be
available for:
(A) Capital improvements at the eligible licensed horse
racing tracks in the state; and
(B) Marketing and advertising programs above and beyond two
hundred fifty thousand dollars for the eligible licensed horse
racing tracks in the state: Provided, That moneys shall be
expended for capital improvements or marketing and advertising
purposes as described in this subsection only in accordance with
a plan filed with and receiving the prior approval of the racing
commission, and on a basis of fifty percent participation by the
licensee and fifty percent participation by moneys from the fund,
in the total cost of approved projects: Provided, however, That
funds approved for one track may not be used at another track
unless the first track ceases to operate or is viewed by the
commission as unworthy of additional investment due to financial
or ethical reasons.
(g)(1) Each pari-mutuel thoroughbred horse track shall
provide at least one restricted race per three racing days.
(2) The restricted races established in this subsection shall be administered by a three-member committee consisting of:
(A) The racing secretary;
(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 a majority of the thoroughbred
breeders.
(3) The purses for the restricted races established in this
subsection shall be twenty percent larger than the purses for
similar type races at each track.
(4) Restricted races shall be funded by each racing
association from:
(A) Moneys placed in the general purse fund up to a maximum
of three hundred fifty thousand dollars 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".
(5) The racing schedules, purse amounts and types of races
are subject to the approval of the West Virginia racing
commission.
(h) Effective on and after the first day of July, two thousand, as used in this section, "West Virginia bred-foal"
means a horse that was born in the state of West Virginia.
(i) 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 (2) above, but
either the sire of the West Virginia bred-foal is a West Virginia
stallion, or the mare is covered by a West Virginia stallion
following the birth of that West Virginia bred-foal.
(j) No association or licensee qualifying for the alternate
tax provision of subsection (b), section ten of this article is
eligible for participation in any of the provisions of this
section: Provided, That the provisions of this subsection shall
not apply to a thoroughbred race track at which the licensee has
participated in the West Virginia thoroughbred development fund
for a period of more than four consecutive calendar years prior to the thirty-first day of December, one thousand nine hundred
ninety-two.
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