Senate Bill No. 718
(By Senator Snyder)
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[Introduced March 23, 2009; referred to the Committee on the
Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact §29-22C-27 of the Code of West
Virginia, 1931, as amended, relating to allocating to certain
municipalities and counties an increased proportion of the
adjusted gross receipts from licensed racetracks with West
Virginia Lottery table games and a corresponding decrease in
funds transferred to the state when the voters of all the
counties that have licensed racetracks have approved that West
Virginia Lottery table games are permitted at those licensed
racetracks.
Be it enacted by the Legislature of West Virginia:
That §29-22C-27 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
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) There is hereby created and established a special fund
in the State Treasury to be known as the West Virginia Lottery
Racetrack Table Games Fund 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 hereby
created 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 (d) 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, such amount being divided equally between
such 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, such amount being divided equally between such
special funds of each greyhound racetrack table games licensee;
(3) Transfer two percent of the adjusted gross receipts from
all licensed racetracks to the Thoroughbred Development Fund
created under section thirteen-b, article twenty-three, chapter
nineteen of this code and the 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. No portion of the amounts transferred to
these funds may 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
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) no single municipality in a
county where West Virginia Lottery racetrack table games are played
may receive a total share under this part A that is in excess of
seventy-five percent of the total distribution under this part A
for the county in which the municipality is located; and (iii) no
municipality receiving moneys under this part A shall receive an
amount which is less than that received by a municipality under
provisions of subdivision
four (4), subsection (c) 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,
other than those counties that have enacted the Local
Powers Act, 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) No
municipality which received funds above its pro rata share pursuant
to subpart (iii) of part A above shall receive an allocation under
this part B; (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) no single
municipality in a county where West Virginia Lottery racetrack
games are played may receive a total share under this part B that
is in excess of twenty-five percent of the total transfers under
this part B:
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, which municipalities
shall each receive an equal share of the total amount allocated
under this subdivision:
Provided, That no distribution under this
subdivision shall 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, no transfer shall
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 (c) of this section.
(c) 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 created 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.
(d) 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. At no time may the
commission's expenses associated with a particular racetrack with
authorized table games under this article 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 licensees operation of table games under this article.
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.
(e) Notwithstanding any provision in this article to the
contrary, at such time that the voters in all of the counties that
have licensed racetracks have voted to permit West Virginia Lottery
table games to be located at those racetracks, the percentage
proportion of the adjusted gross receipts from those licensed
racetracks payable to counties and municipalities as set forth in
subdivisions (4), (5) and (6), subsection (b) of this section shall
be doubled: Provided, That at such time the gross receipts to the
state shall be decreased in an amount equal to the increase to the
counties and municipalities.
NOTE: The purpose of this bill is to permit certain
municipalities and counties to double their proportionate share of
the adjusted gross receipts from licensed racetracks with West
Virginia Lottery table games, and a corresponding decrease in funds
transferred to the state, when the voters of all the counties that
have licensed racetracks have approved that West Virginia Lottery
table games are permitted at those racetracks.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.