H. B. 4458
(By Delegates Campbell and Klempa)
[Introduced
February 11, 2010
; referred to the
Committee on Political Subdivisions then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §13-2H-1, §13-2H-2,
§13-2H-3, §13-2H-4, §13-2H-5, §13-2H-6, §13-2H-7, §13-2H-8,
§13-2H-9, §13-2H-10, §13-2H-11 and §13-2H-12; and to amend and
reenact §29-22C-27 of said code, all relating to the
authorization of municipalities, county commissions and
certain boards of education to issue revenue bonds secured by
lottery revenue for the purpose of acquiring or constructing
public projects.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §13-2H-1, §13-2H-2,
§13-2H-3, §13-2H-4, §13-2H-5, §13-2H-6, §13-2H-7, §13-2H-8, §13-2H-
9, §13-2H-10, §13-2H-11 and §13-2H-12; and that §29-22C-27 of said
code be amended and reenacted, all to read as follows:
CHAPTER 13. PUBLIC BONDED INDEBTEDNESS.
ARTICLE 2H. LOTTERY REVENUE BOND ACT.
§13-2H-1. Short title.
This article may be known as and may be cited as the Lottery
Revenue Bond Act.
§13-2H-2. Definitions.
Unless the context clearly indicates otherwise, as used in
this article:
(a) "Board of education" means a 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, and is receiving lottery
revenues.
(b) "Governmental body" means any municipality, county or
board of education that receives lottery revenues.
(c) "Lottery revenues" means the funds distributed to a
governmental body pursuant to the provisions of sections ten and
ten-b, article twenty-two-a, chapter twenty-nine of this code;
section one thousand four hundred eight, article twenty-two-b of
said chapter, or section twenty-seven, article twenty-two-c of said
chapter or section twenty-two, article twenty-five, chapter twenty-
nine of this code.
(d) "Lottery revenue bonds" means bonds, debentures, notes, certificates of participation, certificates of beneficial interest,
certificates of ownership or other evidences of indebtedness or
ownership that are issued by a governmental body, the proceeds of
which are used directly or indirectly to finance or refinance
public projects pursuant to this article and are secured by the
lottery revenues of the governmental body.
(e) "Lottery Revenue Fund" means the fund required to be
established by the governmental body to deposit lottery revenues if
the governmental body issues lottery revenue bonds.
(f) "Public project" means any project approved by a
governmental body to acquire, improve, renovate, extend, enlarge,
increase, repair, construct, equip, maintain and operate public
buildings, structures, fixtures, property, public infrastructure
and appurtenant facilities of any type or types for which the
governmental body is permitted by law to expend public funds
including, but not limited to, those projects as defined in section
one, article sixteen, chapter eight of this code.
§13-2H-3. Powers conferred on counties and municipalities.
In addition to any other powers which a county or municipality
may now have, each county, by and through its county commission,
and each municipality, by and through its council or other
governing body in lieu thereof, may: (a) Acquire, whether by
purchase, construction, gift, lease or otherwise, one or more
public projects, or additions thereto, which shall be located
within this state; and (b) issue and deliver lottery revenue bonds secured by lottery revenues to finance or refinance public
projects.
§13-2H-4. Issuance of lottery revenue bonds by county.
(a) The county commission may issue lottery revenue bonds of
the county as provided in this section to finance or refinance all
or part of a public project and pledge all or any part of the
lottery revenues for the payment of the principal of and interest
on such lottery revenue bonds and for reserves therefor: Provided,
That a county commission receiving lottery revenues pursuant to the
provisions of subdivision (3), subsection (c), section twenty-
seven, article twenty-two-c, chapter twenty-nine of this code may
only pledge fifty percent of the lottery revenues to the payment of
principal and interest on the lottery revenue bonds and for
reserves therefor. Any pledge of lottery revenue funds for lottery
revenue bonds is a prior and superior charge on the lottery
revenues and Lottery Revenue Fund over the use of any of the moneys
to pay for the cost of any of the purposes on a cash basis.
(b) The lottery revenue bonds may be authorized and issued by
the county commission to finance or refinance, in whole or in part,
public projects in an aggregate principal amount not exceeding the
amount which the county commission determines can be paid as to
both principal and interest and reasonable margins for a reserve
therefor from the lottery revenues and the Lottery Revenue Fund.
A county commission issuing lottery revenue bonds shall establish
a fund to deposit lottery revenues and call such fund the Lottery Revenue Fund. The county commission shall thereafter deposit all
lottery revenues pledged to the payment of principal and interest
of lottery revenue bonds into the Lottery Revenue Fund.
(c) The issuance of lottery revenue bonds may be authorized by
an order of the county commission. The lottery revenue bonds
shall: (1) Bear a date or dates; (2) mature at a time or times not
exceeding forty years from their respective dates; (3) be in a
specific denomination; (4) be in a registered form with
exchangeability and interchangeability privileges; (5) be payable
in a medium of payment and at a place or places within or without
the state; (6) be subject to terms of prior redemption at those
prices; and (7) may have such other terms and provisions as
determined by the county commission. The lottery revenue bonds
shall be signed by the president of the county commission under the
seal of the county commission, attested by the clerk of the county
commission. Lottery revenue bonds may be sold in a manner as the
county commission determines is for the best interests of the
county.
(d) The county commission may enter into: (1) Trust
agreements with banks or trust companies within or without the
state and in trust agreements or orders authorizing the issuance of
bonds; (2) valid and legally binding covenants with the holders of
the lottery revenue bonds as to the custody, safeguarding and
disposition of the proceeds of the lottery revenue bonds, the
moneys in the Lottery Revenue Fund, sinking funds, reserve funds or any other moneys or funds; as to the rank and priority, if any, or
different issues of lottery revenue bonds by the county commission
under the provisions of this section; (3) agreements as to such
provisions as payment, term, security, default and remedy
provisions as the county commission shall consider necessary or
desirable; and
(4) Agreements as to any other matters or provisions which are
considered necessary and advisable by the county commission in the
best interests of the county and to enhance the marketability of
such lottery revenue bonds.
(e) The lottery revenue bonds are negotiable instruments under
the Uniform Commercial Code of this state and are not obligations
or debts of the state or of the county issuing the bonds and the
credit or taxing power of the state or county may not be pledged
therefor, but the lottery revenue bonds may be payable only from
the revenue pledged therefor as provided in this section.
(f) A holder of lottery revenue bonds has a lien against the
lottery revenues and the Lottery Revenue Fund for payment of the
lottery revenue bond and the interest thereon and may bring suit to
enforce the lien.
(g) A county commission may issue and secure additional bonds
payable out of the lottery revenues and the Lottery Revenue Fund
which bonds may rank on a parity with, or be subordinate or
superior to, other bonds issued by the county commission and
payable from the Lottery Revenue Fund.
§13-2H-5. Issuance of lottery revenue bonds by municipality.
(a) A municipality may issue lottery revenue bonds as provided
in this section to finance or refinance all or part of a public
project and pledge all or any part of the lottery revenues for the
payment of the principal of and interest on the lottery revenue
bonds and for reserves therefor: Provided, That a municipality
receiving lottery revenues pursuant to the provisions of
subdivision (4), subsection (c), section twenty-seven, article
twenty-two-c, chapter twenty-nine of this code may only pledge
fifty percent of the lottery revenues to the payment of principal
and interest on the lottery revenue bonds and for reserves
therefor. Any pledge of lottery revenue funds for lottery revenue
bonds is a prior and superior charge on the lottery revenues and
Lottery Revenue Fund over the use of any of the moneys to pay for
the cost of any of such purposes on a cash basis.
(b) The lottery revenue bonds may be authorized and issued by
the municipality to finance or refinance, in whole or in part,
public projects in an aggregate principal amount not exceeding the
amount which the municipality determines can be paid as to both
principal and interest and reasonable margins for a reserve
therefor from the lottery revenues and the Lottery Revenue Fund.
A municipality issuing lottery revenue bonds shall establish a fund
to deposit lottery revenues and call the fund the Lottery Revenue
Fund. The municipality shall thereafter deposit all lottery
revenues pledged to the payment of principal and interest of lottery revenue bonds into the Lottery Revenue Fund.
(c) The issuance of lottery revenue bonds may be authorized by
an ordinance of the municipality and such lottery revenue bonds
shall be issued pursuant to the provisions of article sixteen,
chapter eight of this code.
(d) The lottery revenue bonds are negotiable instruments under
the Uniform Commercial Code of this state and may not be considered
to be obligations or debts of the state or of the municipality
issuing the bonds and the credit or taxing power of the state or
municipality may not be pledged therefor, but the lottery revenue
bonds may be payable only from the revenue pledged therefor as
provided in this section.
(e) A holder of lottery revenue bonds has a lien against the
lottery revenues and the Lottery Revenue Fund for payment of the
lottery revenue bond and the interest thereon and may bring suit to
enforce the lien.
(f) A municipality may issue and secure additional bonds
payable out of the lottery revenues and the Lottery Revenue Fund
which bonds may rank on a parity with, or be subordinate or
superior to, other bonds issued by the municipality and payable
from the Lottery Revenue Fund.
§13-2H-6. Issuance of lottery revenue bonds by board of education.
(a) A board of education may issue and deliver lottery revenue
bonds secured by lottery revenues to finance or refinance public
projects. The board of education may issue lottery revenue bonds of the school district as provided in this section to finance or
refinance all or part of a public project and pledge all or any part
of the lottery revenues for the payment of the principal of and
interest on lottery revenue bonds and for reserves therefor. Any
pledge of lottery revenue funds for lottery revenue bonds is a prior
and superior charge on the lottery revenues and Lottery Revenue Fund
over the use of any of the moneys to pay for the cost of any of such
purposes on a cash basis.
(b) Lottery revenue bonds may be authorized and issued by the
Board of Education to finance or refinance, in whole or in part,
public projects in an aggregate principal amount not exceeding the
amount which the board of education determines can be paid as to both
principal and interest and reasonable margins for a reserve therefor
from the lottery revenues and the Lottery Revenue Fund. A board of
education issuing lottery revenue bonds shall establish a fund to
deposit lottery revenues and call the fund the Lottery Revenue Fund.
The board of education shall thereafter deposit all lottery revenues
pledged to the payment of principal and interest of lottery revenue
bonds into the Lottery Revenue Fund.
(c) The issuance of lottery revenue bonds may be authorized by
an order of the board of education and the lottery revenue bonds
shall: (1) Bear a specific date or dates; (2) mature at such time or
times not exceeding forty years from their respective dates; (3) be
in a specific denomination; (4) be in registered form with
exchangeability and interchangeability privileges; (5) be payable in the medium of payment and at a specific place or places within or
without the state; (6) be subject to terms of prior redemption at
specific prices; and (7) have such other terms and provisions as
determined by the board of education. The lottery revenue bonds shall
be signed by the president of the board of education under the seal
of the board of education, attested by the secretary of the board of
education. Lottery revenue bonds may be sold in the manner as the
board of education determines is for the best interests of the school
district.
(d) The board of education may enter into: (1) Trust agreements
with banks or trust companies, within or without the state; (2) trust
agreements or the orders authorizing the issuance of the bonds; (3)
valid and legally binding covenants with the holders of the lottery
revenue bonds as to the custody, safeguarding and disposition of the
proceeds of the lottery revenue bonds, the moneys in the Lottery
Revenue Fund, sinking funds, reserve funds or any other moneys or
funds; (4) agreements as to the rank and priority, if any, or
different issues of lottery revenue bonds by the board of education
under the provisions of this section; (5) agreements as to the
provisions of payment, term, security, default and remedy provisions
as the board of education may consider necessary or desirable; and (6)
agreements as to any other matters or provisions which are considered
necessary and advisable by the board of education in the best
interests of the school district and to enhance the marketability of
such lottery revenue bonds.
(e) The lottery revenue bonds are negotiable instruments under
the Uniform Commercial Code of this state and may not be considered
to be obligations or debts of the state or of the board of education
issuing the bonds and the credit or taxing power of the state or board
of education may not be pledged therefor, but the lottery revenue
bonds may be payable only from the revenue pledged therefor as
provided in this section.
(f) A holder of lottery revenue bonds has a lien against the
lottery revenues and the Lottery Revenue Fund for payment of the
lottery revenue bond and the interest thereon and may bring suit to
enforce the lien.
(g) A board of education may issue and secure additional bonds
payable out of the lottery revenues or Lottery Revenue Fund which
bonds may rank on a parity with, or be subordinate or superior to,
other bonds issued by the board of education and payable from the
Lottery Revenue Fund.
§13-2H-7. Use of proceeds from sale of bonds.
(a) The proceeds from the sale of any bonds issued under
authority of this article may be applied only for the purpose for
which the bonds were issued: Provided, That any accrued interest
received in any sale shall be applied to the payment of the principal
of or the interest on the bonds sold. If for any reason any portion
of the proceeds are not needed for the purpose for which the bonds
were issued, then the unneeded portion of the proceeds shall be
applied to the purchase of bonds for cancellation or payment of the principal of or the interest on the bonds or held in reserve for the
payment thereof.
(b) The costs of any public project shall be considered to
include the following:
(1) Capital costs, including, but not limited to, the actual
costs of the construction of public works or improvements, capital
improvements and facilities, new buildings, structures and fixtures,
the demolition, alteration, remodeling, repair or reconstruction of
existing buildings, structures and fixtures, the removal or
containment of, or the restoration of soil or groundwater affected by
environmental pollution, environmental remediation, the acquisition
of equipment and site clearing, grading and preparation;
(2) Financing costs, including, but not limited to, any interest
paid to holders of evidences of indebtedness issued to pay for project
costs, all costs of issuance and any redemption premiums, credit
enhancement or other related costs;
(3) Real property acquisition costs;
(4) Professional service costs, including, but not limited to,
those costs incurred for architectural planning, engineering and legal
advice and services;
(5) Imputed administrative costs, including, but not limited to,
reasonable charges for time spent by governmental body employees in
connection with the implementation of a project;
(6) Relocation costs, including, but not limited to, those
relocation payments made following condemnation and job training and retraining and costs for utility relocation; and
(7) Organizational costs, including, but not limited to, the
costs of conducting environmental impact and other studies and the
costs of informing the public with respect to the implementation of
project plans.
§13-2H-8. Redemption of bonds.
The lottery revenue bonds issued pursuant to this article may
contain a provision therein to the effect that they, or any of them,
may be called for redemption at any time prior to maturity by the
governmental body and at such redemption prices or premiums, which
terms shall be stated in the bond.
§13-2H-9. Refunding bonds.
Any lottery revenue bonds issued hereunder and at any time
outstanding may, at any time and from time to time, be refunded by a
county, municipality or board of education by the issuance of its
refunding bonds in such amount as the governmental body may determine
necessary to refund the principal of the bonds so to be refunded,
together with any unpaid interest thereon; to make any improvements
or alterations in the public project; and any premiums and commissions
necessary to be paid in connection therewith. Any refunding may be
effected whether the bonds to be refunded have then matured or shall
thereafter mature, either by sale of the refunding bonds and the
application of the proceeds thereof for the redemption of the bonds
to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby: Provided, That the holders of any bonds
so to be refunded may not be compelled without their consent to
surrender their bonds for payment or exchange prior to the date on
which they are payable or, if they are called for redemption, prior
to the date on which they are by their terms subject to redemption.
Any refunding bonds issued under the authority of this article shall
be payable from the lottery revenues, the Lottery Revenue Fund or from
other moneys or the principal of and interest on or other investment
yield from investments or proceeds of bonds or other applicable funds
and moneys, including investments of proceeds of any refunding bonds,
and are subject to the provisions contained in section five, six or
seven of this article, as applicable.
§13-2H-10. Joint establishment by two or more governmental bodies.
Any two or more governmental bodies may jointly acquire by
construction or purchase, or both, or finance one or more public
projects or additions thereto by the issuance and delivery of lottery
revenue bonds in which case such governmental bodies shall jointly
exercise all the rights, authority, power and duties herein conferred
upon a county commission, a municipality or a board of education when
acting singly and they shall also be subject to the same limitations,
restrictions and conditions as are herein imposed on a singly
governmental body in connection with the acquisition or finance of a
public project. Notwithstanding the signing and sealing requirements
set forth in section four, five or six of this article, one of such
governing bodies may sign and seal bonds issued pursuant to this article on both its own behalf and on behalf of all other
participating governing bodies, and signature in the manner set forth
in the said section four, five or six, as applicable, by one governing
body shall be effect as to all other participating governing bodies.
The respective governing bodies, acting jointly, may also provide by
agreement among themselves, any other terms and conditions of such
joint participation.
§13-2H-11. Exemption from taxation.
The lottery revenue bonds issued pursuant to this article and the
income therefrom are exempt from all taxation by the State of West
Virginia, or by any county, school district, municipality or political
subdivision thereof, except inheritance, estate and transfer taxes;
and the real and personal property which a county commission, a
municipality or board of education may acquire pursuant to the
provisions of this article shall be exempt from taxation by the state,
or any county, municipality or other levying body, as public property,
so long as the same is owned by such county, municipality or board of
education.
§13-2H-12. Construction of article.
This article may not be construed as a restriction or limitation
upon any powers which a county, municipality or board of education
might otherwise have under any laws of this state, but shall be
construed as alternative or additional. This article may not be
construed as requiring an election by the voters of a county,
municipality or board of education prior to the issuance of bonds hereunder by a county, municipality or board of education and may not
be construed as requiring any proceeding under any law or laws, other
than that which is required by this article.
CHAPTER 29. MISCELLANEOUS AND OFFICERS.
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 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.
County
commissions may pledge this money to make payments on lottery revenue
bonds issued pursuant to article two-h, chapter thirteen of this code.
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 public projects, as defined in section two, article two-
h, chapter thirteen of this code or to make payments on lottery
revenue bonds issued to finance public projects;
(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.
Municipalities may pledge the money to make payments on
lottery revenue bonds issued pursuant to article two-h, chapter
thirteen of this code. which This money 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 public projects, as defined in section two, article two-
h, chapter thirteen of this code, or to make payments on lottery
revenue bonds issued to finance the public projects;
(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.
The municipality may pledge this money to make
payments on lottery revenue bonds issued pursuant to article two-h,
chapter thirteen of this code; 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 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:
Provided, however, That up to fifty percent of these funds may be
pledged to make payments on lottery revenue bonds issued pursuant to article two-h, chapter thirteen of this code; 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:
Provided, however, That up to fifty percent of these funds may be
pledged to make payments on lottery revenue bonds issued pursuant to
article two-h, chapter thirteen of this code.
(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 authorize county
commissions, municipalities and boards of education that receive
lottery revenues to issue bonds secured by such lottery revenues to
construct public projects. This will allow county commissions,
municipalities and boards of education to construct more public
projects which creates jobs and stimulates the economy.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be
added.