WEST virginia Legislature
2017 regular session
By
[
to the Committee on Small Business, Entrepreneurship and Economic Development
then the Judiciary then Finance.
A BILL to amend and
reenact §29-22B-1101 and §29-22B-1408 of the Code of West Virginia, 1931, as
amended, all relating to permitting licensed limited video lottery retailers to
have up to seven video lottery terminals; permitting certain fraternal
societies and veterans’ organizations to have up to twelve video lottery
terminals; and providing that a portion of the revenue generated by the lottery
terminals be deposited into the State Road Fund.
Be it enacted by the
Legislature of West Virginia:
That §29-22B-1101 and §29-22B-1408
of the Code of West Virginia, 1931, as amended, be amended and reenacted, all
to read as follows:
ARTICLE 22B. LIMITED
VIDEO LOTTERY.
PART 11. ALLOCATION AND
DISTRIBUTION
OF VIDEO LOTTERY TERMINALS.
§29-22B-1101. Limitation
on number and location of video lottery terminals.
(a) The Lottery Commission
may not authorize the placement of more than nine thousand video lottery
terminals in restricted access adult-only facilities in this state.
(b) No person may directly
or indirectly operate more than seven and one-half percent of the number of
video lottery terminals authorized in this section, which shall be located only
in restricted access adult-only facilities.
(c) No licensed limited video
lottery retailer may be authorized to have on the premises for which the
license was issued more than five seven video lottery terminals
except that a fraternal society or veteran's
organization that is (A) a fraternal beneficiary society that is exempt from
federal income tax under Section 501(c)(8) of the Internal Revenue Code of
1986, as amended, (B) a domestic fraternal society that is exempt from federal
income tax under Section 501(c)(10), or (C) a veterans' organization that is exempt from federal income tax
under Section 501(c)(19) of the Internal Revenue Code may be authorized to have
on the premises for which the license was issued not more than ten twelve
video lottery terminals.
§29-22B-1408.
Distribution of state's share of gross
terminal income.
(a) The state's share of gross terminal income is calculated as
follows:
(1) The commission shall
deposit two percent of gross terminal income into the stateWest Virginia
Lottery Fund for the commission's
costs and expenses incurred in administering this article. From this amount,
not less than $150,000 nor more than $1,000,000 per fiscal year, as determined
by the commission each year, shall be transferred to the compulsive gambling
treatment fund created in section 29-22A-19 nineteen, article twenty-two-a
of this chapter. In the event that the percentage allotted under this
subsection for the commission's costs and
expenses incurred in administering this article generates a surplus, the
surplus shall be allowed to accumulate to an amount not to exceed $250,000. On
a monthly basis, the director shall report to the Joint Committee on Government
and Finance of the Legislature any surplus in excess of $250,000 and remit to the
State Treasurer the entire amount of those surplus funds in excess of $250,000
to be deposited in the fund established in section 29-22-18a eighteen-a,
article twenty-two of this chapter: Provided, That at the close of
each of the fiscal years ending June 30, 2006, 2007, 2008, 2009, 2010 and 2011,
the portion of the two percent allowance for administrative expenses provided
in this subdivision (1) that remains unspent for costs and expenses
incurred in administering this article, not to exceed $20,000,000 in any fiscal
year, shall be transferred to the Revenue Center Construction Fund created by
subsection (l), of section eighteen, article twenty-two of this chapter
for the purpose of constructing a state office building.
(2) Gross profits are
determined by deducting the percentage described in subdivision (1) of this
subsection, from gross terminal income.
(3) The commission shall
receive thirty percent of gross profits as defined in subdivision (2) of this
subsection except as otherwise provided in this subdivision. On June 1, 2002,
the commission shall calculate the aggregate average daily gross terminal
income for all operating video lottery terminals during the preceding three-month
period. Thereafter, the commission shall make the calculation on the first day
of the month preceding the months of October, January, April and July of each
year. So long as the aggregate average gross terminal income per day for the
operating video lottery terminals does not exceed $60, the commission's share of gross profits shall continue to be thirty
percent for the succeeding quarter of the year beginning July 1. Beginning on
July 1, 2002 and the first days of October, January, April and July in 2002 and
thereafter, if the commission's
calculation of aggregate average daily gross terminal income per video lottery
terminal yields an amount greater than $60, one of the following schedules
apply: If the amount is greater than $60 per day but not greater than $80 per
day, the commission's share of gross
profits for the ensuing quarter beginning the first day of the quarter of the
year described in this subdivision shall be thirty-four percent; if the amount
is greater than $80 per day but not greater than $100 per day, the commission's share of gross profits for the ensuing quarter
beginning the first day of the quarter of the year described in this subdivision
shall be thirty-eight percent; if the amount is greater than $100 per day but
not greater than $120 per day, the commission's
share of gross profits for the ensuing quarter beginning the first day of the
quarter of the year described in this subdivision shall be forty-two percent;
if the amount is greater than $120 per day but not greater than $140 per day,
the commission's share of gross profits
for the ensuing quarter beginning the first day of the quarter of the year
described in this subdivision shall be forty-six percent; if the amount is
greater than $140 per day, the commission's
share of gross profits for the ensuing quarter beginning the first day of the
quarter of the year described in this subdivision shall be fifty percent. This
amount shall be known as net terminal income.
(b) Net terminal income
shall be distributed by the commission as follows:
(1)(A) Beginning July 1,
2002, a county and the incorporated municipalities within that county shall
receive two percent of the net terminal income generated by limited video
lottery terminals located within the county;
(B) From this two percent
of net terminal income, each municipality shall receive a share that bears the
same proportion to the total two percent of net terminal income as the population
of the municipality bears to the total population of the county as determined
by the most recent decennial United States census of population, and the county
shall receive the remaining portion of the two percent of net terminal income;
and
(2) Any remaining funds
shall be deposited into the state Excess Lottery Revenue Fund established in
section eighteen-a, article twenty-two of this chapter.
(c)(1) Notwithstanding
any provision of subsections (a) and (b) of this section to the contrary, the
gross and net proceeds of a licensed limited video lottery retailer who has
been issued more than five video lottery terminals, as permitted by section one
thousand one hundred one of this article, the state’s portion of the gross
terminal income and the net terminal income shall be calculated and deposited
as follows:
(A) For retailers that
have six terminals, one-sixth of all the entire gross and net terminal incomes
shall be deposited in the State Road Fund.
(B) For retailers that
have seven terminals, two-sevenths of the entire gross and net terminal incomes
shall be deposited in the State Road Fund.
(c)(2) Notwithstanding
any provision of subsections (a) and (b) of this section to the contrary, the
gross and net proceeds of a licensed fraternal society or veteran's organization who has been issued more than ten video
lottery terminals, as permitted by section one thousand one hundred one of this
article, the state’s portion of the gross terminal income and the net terminal
income shall be calculated and deposited as follows:
(A) For fraternal
societies and veterans’ organizations that have eleven terminals, one-eleventh
of all the entire gross and net terminal incomes shall be deposited in the
State Road Fund.
(B) For fraternal
societies and veterans’ organizations that have twelve terminals, one-sixth of
the entire gross and net terminal incomes shall be deposited in the State Road
Fund.
(c) (d) The licensed operators and limited video
lottery retailers shall receive the balance of gross terminal income remaining
after deduction of the state's share as
calculated pursuant to this section.
NOTE: The purpose of this bill is
to permit licensed limited video lottery retailers to have up to seven video
lottery terminals. The bill permits certain fraternal societies and veterans’
organizations to have up to twelve video lottery terminals. The bill provides
that a portion of the revenue generated by the lottery terminals be deposited
into the State Road Fund.
Strike-throughs indicate language
that would be stricken from a heading or the present law, and underscoring
indicates new language that would be added.