Senate Bill No. 337
(By Senators Snyder, Unger and Kessler)
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[Introduced January 12, 2010; referred to the Committee on the
Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact §19-23-10, §19-23-13 and §19-23-13b
of the Code of West Virginia, 1931, as amended; to amend and
reenact §29-22A-10 of said code; and to amend and reenact
§29-22C-27 of said code, all relating to requiring all of an
established $11 million Racetrack Video Lottery Fund to be
transferred into the existing West Virginia Racing
Commission Special Account - Unredeemed Pari-Mutuel Tickets
account, to be used to pay certain current and unpaid debt
payments and, when those debt obligations have been fully
met, all moneys deposited in the Video Lottery Fund will
fund the Workers' Compensation debt service until that debt
is retired; placing certain funds in the West Virginia
Racing Commission Special Account - West Virginia Greyhound
Breeding Development Fund; removing a provision concerning
the Thoroughbred Development Fund; eliminating a $200,000
annual payment for providing health and disability benefits
to jockeys and their dependents; eliminating an obsolete
provision concerning a special trust fund; providing that
the Racing Commission may use current funds to pay for
previously incurred obligations; requiring certain
obligations be paid on an annual basis, some on a monthly
basis and others on a weekly basis; certain receipts from
all thoroughbred and greyhound racetracks be divided on a
pro rata basis between those racetracks; and modifying a
current Treasury account to include funds for greyhound
adoption, spaying and neutering.
Be it enacted by the Legislature of West Virginia:
That §19-23-10, §19-23-13 and §19-23-13b of the Code of West
Virginia, 1931, as amended, be amended and reenacted; that §29-
22A-10 of said code be amended and reenacted; and that §29-22C-27
of said code be amended and reenacted, all to read as follows:
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-10. Daily license tax; pari-mutuel pools tax; how taxes
paid; alternate tax; credits.
(a) Any racing association conducting thoroughbred racing at
any horse racetrack in this state shall pay each day upon which
horse races are run a daily license tax of $250. Any racing
association conducting harness racing at any horse racetrack in
this state shall pay each day upon which horse races are run a
daily license tax of $150. Any racing association conducting dog races shall pay each day upon which dog races are run a daily
license tax of $150. In the event thoroughbred racing, harness
racing, dog racing or any combination of the foregoing are
conducted on the same day at the same racetrack by the same
racing association, only one daily license tax in the amount of
$250 shall be paid for that day. Any daily license tax shall not
apply to any local, county or state fair, horse show or
agricultural or livestock exposition at which horse racing is
conducted for not more than six days.
(b) Any racing association licensed by the Racing Commission
to conduct thoroughbred racing and permitting and conducting
pari-mutuel wagering under the provisions of this article shall,
in addition to the daily license tax set forth in subsection (a)
of this section, pay to the Racing Commission, from the
commission deducted each day by the licensee from the pari-mutuel
pools on thoroughbred racing a tax calculated on the total daily
contribution of all pari-mutuel pools conducted or made at any
and every thoroughbred race meeting of the licensee licensed
under the provisions of this article. The tax, on the pari-
mutuel pools conducted or made each day during the months of
January, February, March, October, November and December, shall
be calculated at four- tenths of one percent of the pool; and, on
the pari-mutuel pools conducted or made each day during all other
months, shall be calculated at one and four-tenths percent of the
pool:
Provided, That out of the amount realized from the three
tenths of one percent decrease in the tax effective for fiscal
year 1991 and thereafter, which decrease correspondingly
increases the amount of commission retained by the licensee, the
licensee shall annually expend or dedicate: (i) One half of the
realized amount for capital improvements in its barn area at the
track, subject to the Racing Commission's prior approval of the
plans for the improvements; and (ii) the remaining one half of
the realized amount for capital improvements as the licensee may
determine appropriate at the track. The term "capital
improvement" shall be as defined by the Internal Revenue Code:
Provided, however, That any racing association operating a horse
racetrack in this state having an average daily pari-mutuel pool
on horse racing of $280,000 or less per day for the race meetings
of the preceding calendar year shall, in lieu of payment of the
pari-mutuel pool tax, calculated as in this subsection, be
permitted to conduct pari-mutuel wagering at the horse racetrack
on the basis of a daily pari-mutuel pool tax fixed as follows:
On the daily pari-mutuel pool not exceeding $300,000 the daily
pari-mutuel pool tax shall be $1,000 plus the otherwise
applicable percentage rate imposed by this subsection of the
daily pari-mutuel pool, if any, in excess of $300,000:
Provided
further, That upon the effective date of the reduction of the
daily pari-mutuel pool tax to $1,000 from the former $2,000, the
association or licensee shall daily deposit $500 into the special
fund for regular purses established by subdivision (1), subsection (b), section nine of this article:
And provided
further, That if an association or licensee qualifying for the
foregoing alternate tax conducts more than one racing
performance, each consisting of up to thirteen races in a
calendar day, the association or licensee shall pay both the
daily license tax imposed in subsection (a) of this section and
the alternate tax in this subsection for each performance:
And
provided further, That a licensee qualifying for the foregoing
alternate tax is excluded from participation in the fund
established by section thirteen-b of this article:
And provided
further, That this exclusion shall not apply to any thoroughbred
racetrack at which the licensee has participated in the West
Virginia Thoroughbred Development Fund for more than four
consecutive years prior to December 31, 1992.
(c) Any racing association licensed by the Racing Commission
to conduct harness racing and permitting and conducting pari-
mutuel wagering under the provisions of this article shall, in
addition to the daily license tax required under subsection (a)
of this section, pay to the Racing Commission, from the
commission deducted each day by the licensee from the pari-mutuel
pools on harness racing, as a tax, three percent of the first
$100,000 wagered, or any part thereof; four percent of the next
$150,000; and five and three-fourths percent of all over that
amount wagered each day in all pari-mutuel pools conducted or
made at any and every harness race meeting of the licensee
licensed under the provisions of this article.
(d) Any racing association licensed by the Racing Commission
to conduct dog racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition
to the daily license tax required under subsection (a) of this
section, pay to the Racing Commission, from the commission
deducted each day by the licensee from the pari-mutuel pools on
dog racing, as a tax, four percent of the first $50,000 or any
part thereof of the pari-mutuel pools, five percent of the next
$50,000 of the pari-mutuel pools, six percent of the next
$100,000 of the pari-mutuel pools, seven percent of the next
$150,000 of the pari-mutuel pools, and eight percent of all over
$350,000 wagered each day:
Provided, That the licensee shall
deduct daily from the pari-mutuel tax an amount equal to one
tenth of one percent of the daily pari-mutuel pools in dog racing
in fiscal year 1990; fifteen hundredths of one percent in fiscal
year 1991; two tenths of one percent in fiscal year 1992; one
quarter of one percent in fiscal year 1993; and three tenths of
one percent in fiscal year 1994 and every fiscal year thereafter.
The amounts deducted shall be paid to the Racing Commission to be
deposited by the Racing Commission in a banking institution of
its choice in a special account to be known as "West Virginia
Racing Commission-Special Account-West Virginia Greyhound
Breeding Development Fund". The purpose of the fund is to
promote better breeding, training track facilities and racing of greyhounds in the state through awards and purses to bona fide
resident registered greyhound owners of accredited West Virginia
whelped greyhounds. In order to participate and be eligible to
receive an award or purse through the fund, the registered
greyhound owner must have an appropriate license from the Racing
Commission to race in West Virginia. The registered greyhound
dam at the time of breeding must be wholly or solely owned or
leased by a bona fide resident or residents of West Virginia.
The accredited West Virginia whelped greyhound must be wholly or
solely owned by a bona fide resident or residents of this state.
To qualify as a bona fide resident of West Virginia, a registered
greyhound owner may not claim residency in any other state. A
registered greyhound owner must prove bona fide residency by
providing to the commission personal income tax returns filed in
the State of West Virginia for the most recent tax year and the
three previous tax years, has real or personal property in this
state on which the owner has paid real or personal property taxes
during the most recent tax year and the previous three tax years
and an affidavit stating that the owner claims no other state of
residency. The Racing Commission shall maintain a registry for
West Virginia bred greyhounds. The moneys shall be expended by
the Racing Commission for purses for stake races, training track
facilities, supplemental purse awards, administration, promotion,
and educational education and greyhound adoption programs
involving West Virginia whelped dogs, owned by residents of this
state under rules promulgated by the Racing Commission. The
Racing Commission shall pay out of the greyhound breeding
development fund to each of the licensed dog racing tracks the
sum of $75,000 for the fiscal year ending June 30, 1994. The
licensee shall deposit the sum into the special fund for regular
purses established under the provisions of section nine of this
article. The funds shall be expended solely for the purpose of
supplementing regular purses under rules promulgated by the
Racing Commission.
Supplemental purse awards will be distributed as follows:
Supplemental purses shall be paid directly to the registered
greyhound owner of an accredited greyhound.
The registered greyhound owner of accredited West Virginia
whelped greyhounds that earn points at any West Virginia meet
will receive a bonus award calculated at the end of each month as
a percentage of the fund dedicated to the owners as purse
supplements, which shall be a minimum of fifty percent of the
total moneys deposited into the West Virginia Greyhound Breeding
Development fund monthly.
The total amount of the fund available for the owners'
awards shall be distributed according to the ratio of points
earned by an accredited greyhound to the total amount earned in
races by all accredited West Virginia whelped greyhounds for that
month as a percentage of the funds dedicated to the owners' purse
supplements. The point value at all greyhound tracks shall be the same as approved by the Racing Commission to be effective April
1, 2007. The West Virginia Greyhound Owners and Breeders
Association shall submit a list of any additions or deletions to
the registry of accredited West Virginia whelped greyhounds on
the first of each month. The Racing Commission shall not require
anyone to be a member of a particular association in order to
participate in the West Virginia Greyhound Breeding Development
Fund.
The registered greyhound owner of an accredited West
Virginia whelped greyhound shall file a purse distribution form
with the Racing Commission for a percentage of his or her dog's
earnings to be paid directly to the registered greyhound owner or
owners of the greyhound. Distribution shall be made on the
fifteenth day of each month for the preceding month's
achievements.
In no event shall points earned at a meet held at a track
which did not make contributions to the West Virginia Greyhound
Breeding Development Fund out of the daily pool on the day the
meet was held qualify or count toward eligibility for
supplemental purse awards.
Any balance in the purse supplement funds after all
distributions have been made for the year revert to the general
account of the fund for distribution in the following year:
Provided, That not more than $2 million from the balance in the
purse supplemental fund shall be used for the construction and
maintenance of two dog training track facilities if such be
approved by the Racing Commission:
Provided, however, That not
more than $1 million may be allocated for the construction and
maintenance of each training track:
Provided further, That both
training track facilities must be located in West Virginia. The
West Virginia Racing Commission shall be authorized to promulgate
rules governing dog training tracks:
And provided further, That
the Racing Commission shall: (1) Provide a process in its rules
for competitive bidding of the construction or maintenance, or
both, of the training tracks; and (2) set standards to assure
that only the actual costs of construction and maintenance shall
be paid out of the foregoing fund.
In an effort to further promote the breeding of quality West
Virginia whelped greyhounds, a bonus purse supplement shall be
established in the amount of $50,000 per annum, to be paid in
equal quarterly installments of $12,500 per quarter using the
same method to calculate and distribute these funds as the
regular supplemental purse awards. This bonus purse supplement
is for three years only, commencing on July 1, 1993, and ending
June 30, 1996. This money would come from the current existing
balance in the greyhound development fund.
Each pari-mutuel greyhound track shall provide stakes races
for accredited West Virginia whelped greyhounds:
Provided, That
each pari-mutuel track shall have one juvenile and one open stake
race annually. Each pari-mutuel dog track shall provide at least three restricted races for accredited West Virginia whelped
greyhounds per race card:
Provided, however, That sufficient
dogs are available. To assure breeders of accredited West
Virginia whelped greyhounds an opportunity to participate in the
West Virginia Greyhound Breeding Development Fund the West
Virginia Racing Commission by July 1, each year shall establish
and announce the minimum number of accredited West Virginia
whelped greyhounds that greyhound racing kennels at West Virginia
dog tracks must have on their racing active list during the
calendar year following such action. The minimum number may vary
from dog track to dog track. The minimum number shall be
established after consultation with the West Virginia Greyhound
Owners and Breeders Association and kennel owners and operators.
Factors to be considered in establishing this minimum number
shall be the number of individually registered accredited West
Virginia whelped greyhounds whelped in the previous two years.
The number of all greyhounds seeking qualification at each West
Virginia dog track, the ratio of active running greyhounds to
housed number of greyhounds at each West Virginia dog track, and
the size and number of racing kennels at each West Virginia dog
track. Any greyhound racing kennel not having the minimum number
of accredited West Virginia whelped greyhounds determined by the
West Virginia Racing Commission on their active list shall only
be permitted to race the maximum allowable number on the active
list less the number of accredited West Virginia whelped
greyhounds below the established minimum number. Consistent
violations of this minimum requirement may be reviewed by the
Racing Commission and may constitute cause for denial or
revocation of a kennel's racing license. The Racing Commission
shall oversee and approve racing schedules and purse amounts.
Ten percent of the deposits into the greyhound breeding
development fund beginning July 1, 1993 and continuing each year
thereafter, shall be withheld by the Racing Commission and placed
in a special revenue account hereby created in the State Treasury
called the "administration, promotion,
and educational and
education, capital improvement
and greyhound adoption programs to
include spaying and neutering account". The Racing Commission is
authorized to expend the moneys deposited in the administration,
promotion,
and educational and education, capital improvement
and
greyhound adoption programs to include spaying and neutering
account at such times and in such amounts as the commission
determines to be necessary for purposes of administering and
promoting the greyhound development program:
Provided, That
beginning with fiscal year 1995 and in each fiscal year
thereafter in which the commission anticipates spending any money
from the account, the commission shall submit to the executive
department during the budget preparation period prior to the
Legislature convening before that fiscal year for inclusion in
the executive budget document and budget bill, the recommended
expenditures, as well as requests of appropriations for the purpose of administration, promotion,
and education,
capital
improvement and greyhound adoption programs to include spaying
and neutering. The commission shall make an annual report to the
Legislature on the status of the administration, promotion,
and
education,
capital improvement and greyhound adoption programs to
include spaying and neutering account, including the previous
year's expenditures and projected expenditures for the next year.
The Racing Commission, for the fiscal year 1994 only, may
expend up to $35,000 from the West Virginia Greyhound Breeding
Development Fund to accomplish the purposes of this section
without strictly following the requirements in the previous
paragraph.
(e) All daily license and pari-mutuel pools tax payments
required under the provisions of this section shall be made to
the Racing Commission or its agent after the last race of each
day of each horse or dog race meeting, and the pari-mutuel pools
tax payments shall be made from all contributions to all pari-
mutuel pools to each and every race of the day.
(f) Every association or licensee subject to the provisions
of this article, including the changed provisions of sections
nine and ten of this article, shall annually submit to the Racing
Commission and the Legislature financial statements, including a
balance sheet, income statement, statement of change in financial
position and an audit of any electronic data system used for
pari-mutuel tickets and betting, prepared in accordance with
generally accepted auditing standards, as certified by an
experienced public accountant or a certified public accountant.
§19-23-13. Disposition of funds for payment of outstanding and
unredeemed pari-mutuel tickets; publication of
notice; irredeemable tickets; stake races for dog
tracks.
(a) All moneys held by any licensee for the payment of
outstanding and unredeemed pari-mutuel tickets, if not claimed
within ninety days after the close of a horse or dog race meeting
or the televised racing day, as the case may be, in connection
with which the tickets were issued, shall be turned over by the
licensee to the Racing Commission within fifteen days after the
expiration of the ninety-day period, and the licensee shall give
any information required by the Racing Commission concerning the
outstanding and unredeemed tickets. The moneys shall be
deposited by the Racing Commission in a banking institution of
its choice in a special account to be known as "West Virginia
Racing Commission Special Account - Unredeemed Pari-Mutuel
Tickets." Notice of the amount, date and place of each deposit
shall be given by the Racing Commission, in writing, to the State
Treasurer. The Racing Commission shall then cause to be
published a notice to the holders of the outstanding and
unredeemed pari-mutuel tickets, notifying them to present their
unredeemed tickets for payment at the principal office of the
Racing Commission within ninety days from the date of the publication of the notice. The notice shall be published within
fifteen days following the receipt of the outstanding and
unredeemed pari-mutuel ticket moneys by the commission from the
licensee as a Class I legal advertisement in compliance with the
provisions of article three, chapter fifty-nine of this code, and
the publication area for the publication shall be the county in
which the horse or dog race meeting was held and the county in
which the televised racing day wagering was conducted in this
state.
(b) Any outstanding and unredeemed pari-mutuel tickets that
are not presented for payment within ninety days from the date of
the publication of the notice are thereafter irredeemable, and
the moneys theretofore held for the redemption of the pari-mutuel
tickets shall become the property of the Racing Commission and
shall be expended as provided in this subsection. The Racing
Commission shall maintain separate accounts for each licensee and
shall record in each separate account the moneys turned over by
the licensee and the amount expended at the licensee's track for
the purposes set forth in this subsection. The moneys in the
West Virginia Racing Commission special account - unredeemed
pari-mutuel tickets shall be expended as follows:
(1) To the owner of the winning horse in any horse race at a
horse race meeting held or conducted by any licensee:
Provided,
That the owner of the horse is at the time of the horse race a
bona fide resident of this state, a sum equal to ten percent of
the purse won by the horse at that race:
Provided, however, That
in the event there are more than ten races in any performance,
the award to the resident owner of the winning horse will be that
fractional share of the purse with a numerator of one and a
denominator representing the number of races on the day of the
performance. The commission may require proof that the owner
was, at the time of the race, a bona fide resident of this state.
Upon proof by the owner that he or she filed a personal income
tax return in this state for the previous two years and that he
or she owned real or personal property in this state and paid
taxes in this state on real or personal property for the previous
two years, he or she shall be presumed to be a bona fide resident
of this state; and
(2) To the breeder (that is, the owner of the mare) of the
winning horse in any horse race at a horse race meeting held or
conducted by any licensee:
Provided, That the mare foaled in
this state, a sum equal to ten percent of the purse won by the
horse:
Provided, however, That in the event there are more than
ten races in any performance, the award to the breeder will be
that fractional share of the purse with a numerator of one and a
denominator representing the number of races on the day of the
performance; and
(3) To the owner of the stallion which sired the winning
horse in any horse race at a horse race meeting held or conducted
by any licensee:
Provided, That the mare which foaled the winning horse was served by a stallion standing and registered in
this state, a sum equal to ten percent of the purse won by the
horse:
Provided, however, That in the event there are more than
ten races in any performance, the award to the owner of the
stallion will be percentage of the purse based upon the
fractional share represented by the number of races on the day of
the performance;
(
4) To those horse racing licensees not participating in the
Thoroughbred Development Fund authorized in section thirteen-b of
this article, the unexpended balance of the licensee's account
not expended as provided in subdivisions (1), (2) and (3) of this
subsection: Provided, That all moneys distributed under this
subdivision shall be expended solely for capital improvements at
the licensee's track: Provided, however, That the capital
improvements must be approved, in writing, by the West Virginia
Racing Commission before funds are expended by the licensee for
that capital improvement; and
(4) The Racing Commission shall make all current and past
payments required by subdivisions (1), (2) and (3) of this
subsection on a monthly basis. The commission shall make all
current and past payments required by paragraphs (A) and (B),
subdivision (6) of this subsection on an annual basis.
Obligations incurred pursuant to subdivisions (1), (2) and (3) of
this subsection from previous years may be paid with current
funds. Obligations incurred pursuant to paragraphs (A) and (B),
subdivision (6) of this subsection for the years 2007, 2008 and
2009 shall be paid from those funds established by subdivision
(6) of this subsection. These funds are to be placed in the West
Virginia Racing Commission Special Account - West Virginia
Greyhound Breeding Development Fund established by subsection
(d), section ten of this article. These funds will be disbursed
as supplemental purses on a pro rata basis beginning July 1, 2010
and ending on June 30, 2011;
(5) In order that all thoroughbred and greyhound tracks
receive equal funding to each purse accounts, each track shall
receive the same amount as the track that receives the highest
amount pursuant to subdivisions (1), (2) and (3) of this
subsection. To this end the Racing Commission shall, after
making the payments required by those subdivisions, direct funds
to make up those differences, if any, to each track's regular
purse funds on a weekly basis; and
(5) (6) When the moneys in the special account, known as the
West Virginia Racing Commission special account - unredeemed
pari-mutuel tickets will more than satisfy the requirements of
subdivisions (1), (2)
and (3)
, (4) of this subsection, the West
Virginia Racing Commission shall have the authority to expend the
excess moneys from unredeemed horse racing pari-mutuel tickets as
purse money in any race conditioned exclusively for West Virginia
bred or sired horses, and to expend the excess moneys from
unredeemed dog racing pari-mutuel tickets in supplementing purses and establishing stake races and dog racing handicaps at the dog
tracks:
Provided, That the $11 million as authorized by
paragraph (A), subdivision (9), subsection (c), section ten,
article twenty-two-a, chapter twenty-nine of this code shall be
used in the following manner: first, for the payment of current
obligations, those equal funding amounts established by
subdivision (5) of this subsection and, over a two year period,
any unpaid debt payments owed pursuant to subdivisions (1), (2)
and (3) of this subsection and paragraphs (A) and (B),
subdivision (6) of this subsection; and second, all remaining
funds be used to reduce the workers' compensation debt or to pay
debt service on bonds sold for the purpose of reducing or paying
the workers' compensation debt in accordance with section five,
article two-d, chapter twenty-three of this code: Provided,
however, That at such time the aforementioned workers'
compensation debt has been extinguished any remaining amount,
after the financial requirements of this section have been met,
shall be deposited in the appropriate regular purse fund for each
track, Provided further, That subject to the availability of
funds, the commission shall, after the requirements of
subdivisions (1), (2)
and (3),
and (4) of this subsection have
been satisfied.
(A) Transfer annually $200,000 to the West Virginia Racing
Commission special account - West Virginia Greyhound Breeding
Development Fund;
and
(B) Transfer annually $200,000 into a separate account to be
used for stakes races for West Virginia bred greyhounds at dog
racetracks.
and
(C) Transfer annually $200,000 to a trust maintained and
administered by the organization which is recognized by the West
Virginia Racing Commission, pursuant to a legislative rule
proposed for promulgation by the commission and authorized by the
Legislature, as the representative of the majority of the active
jockeys in West Virginia, for the purpose of providing health and
disability benefits to eligible active or disabled West Virginia
jockeys and their dependents in accordance with eligibility
criteria established by said organization. For purposes of this
section in determining health benefits, an eligible active jockey
is one who rides at least one hundred mounts per calendar year of
which fifty-one must be in the State of West Virginia: Provided,
That a jockey is not eligible for health benefits if he or she
receives health benefits from any other state; and
(D) After all payments to satisfy the requirements of (A),
(B) and (C) of this proviso have been satisfied, the commission
shall have authority to transfer $150,000 left from all uncashed
pari-mutuel tickets to the trust maintained and administered by
the organization which is recognized by the West Virginia Racing
Commission, pursuant to legislative rule proposed for
promulgation by the commission and authorized by the Legislature
as the representative of the majority of the active jockeys in West Virginia.
(c) The commission shall submit to the Legislative Auditor a
quarterly report and accounting of the income, expenditures and
unobligated balance in the special account created by this
section known as the West Virginia Racing Commission special
account - unredeemed pari-mutuel tickets.
(d) Nothing contained in this article shall prohibit one
person from qualifying for all or more than one of the aforesaid
awards or for awards under section thirteen-b of this article.
(e) The cost of publication of the notice provided for in
this section shall be paid from the funds in the hands of the
State Treasurer collected from the pari-mutuel pools' tax
provided for in section ten of this article, when not otherwise
provided in the budget; but no such costs shall be paid unless an
itemized account thereof, under oath, be first filed with the
State Auditor.
(f) The Racing Commission is authorized to promulgate
emergency rules
prior to July 1, 2004, to incorporate
the any
revisions to this article.
enacted during the 2004 regular
legislative session.
§19-23-13b. West Virginia Thoroughbred Development Fund;
distribution; restricted races; nonrestricted
purse supplements; preference for West Virginia
accredited thoroughbreds.
(a) The Racing Commission shall deposit moneys required to
be withheld by an association or licensee in subsection (b),
section nine of this article in a banking institution of its
choice in a special account to be known as "West Virginia Racing
Commission Special Account -- West Virginia Thoroughbred
Development Fund"
: Provided, That after the West Virginia
Lottery Commission has divided moneys between the West Virginia
Thoroughbred Development Fund and the West Virginia Greyhound
Breeding Development Fund pursuant to the provisions of sections
ten and ten-b, article twenty-two-a, chapter twenty-nine of this
code, the Racing Commission shall, beginning October 1, 2005,
deposit the remaining moneys required to be withheld from an
association or licensee designated to the Thoroughbred
Development Fund under the provisions of subsection (b), section
nine of this article, subdivision (3), subsection (e), section
twelve-b of this article, subsection (b), section twelve-c of
this article, paragraph (B), subdivision (3), subsection (b),
section thirteen-c of this article and sections ten and ten-b,
article twenty-two-a, chapter twenty-nine of this code into
accounts for each thoroughbred racetrack licensee with a banking
institution of its choice with a separate account for each
association or licensee. Each separate account shall be a
special account to be known as "West Virginia Racing Commission
Special Account - West Virginia Thoroughbred Development Fund"
and shall name the licensee for which the special account has
been established:
Provided, however, That the Racing Commission shall deposit all moneys paid into the Thoroughbred Development
Fund by a thoroughbred racetrack licensee that did not
participate in the Thoroughbred Development Fund for at least
four consecutive calendar years prior to December 31, 1992 from
July 8, 2005 until the effective date of the amendment to this
section passed during the fourth extraordinary session of the
seventy-seventh Legislature shall be paid into the purse fund of
that thoroughbred racetrack licensee:
Provided further, That the
moneys paid into the Thoroughbred Development Fund by a
thoroughbred racetrack licensee that did not participate in the
Thoroughbred Development Fund for at least four consecutive
calendar years prior to December 31, 1992, shall be transferred
into that licensee's purse fund until April 1, 2006. Notice of
the amount, date and place of the deposits shall be given by the
Racing Commission, in writing, to the State Treasurer. The
purpose of the funds is to promote better breeding and racing of
thoroughbred horses in the state through awards and purses for
accredited breeders/raisers, sire owners and thoroughbred race
horse owners:
And provided further, That five percent of the
deposits required to be withheld by an association or licensee in
subsection (b), section nine of this article shall be placed in a
special revenue account hereby created in the state Treasury
called the "Administration and Promotion Account".
(b) The Racing Commission is authorized to expend the moneys
deposited in the administration and promotion account at times
and in amounts as the Commission determines to be necessary for
purposes of administering and promoting the thoroughbred
development program:
Provided, That during any fiscal year in
which the Commission anticipates spending any money from the
account, the Commission shall submit to the executive department
during the budget preparation period prior to the Legislature
convening before that fiscal year for inclusion in the executive
budget document and budget bill the recommended expenditures, as
well as requests of appropriations for the purpose of
administration and promotion of the program. The Commission
shall make an annual report to the Legislature on the status of
the administration and promotion account, including the previous
year's expenditures and projected expenditures for the next year.
(c) The fund or funds and the account or accounts
established in subsection (a) of this section shall operate on an
annual basis.
(d) Funds in the Thoroughbred Development Fund or funds in
the separate accounts for each association or licensee as
provided in subsection (a) of this section shall be expended for
awards and purses except as otherwise provided in this section.
Annually, the first $800,000 shall be available for distribution
for a minimum of fourteen accredited stakes races at a racetrack
which has participated in the West Virginia Thoroughbred
Development Fund for a period of more than four consecutive
calendar years prior to December 31, 1992. The weights for all accredited stakes races shall be weight for age. One of the
stakes races shall be the West Virginia Futurity and the second
shall be the Frank Gall Memorial Stakes. For the purpose of
participating in the West Virginia Futurity only, all mares,
starting with the breeding season beginning the first day of
February through July 31, 2004, and each successive breeding
season thereafter shall be bred back that year to an accredited
West Virginia stallion only which is registered with the West
Virginia Thoroughbred Breeders Association. The accredited stake
races shall be chosen by the committee set forth in subsection
(f) of this section.
(e) Awards and purses shall be distributed as follows:
(1) The breeders/raisers of accredited thoroughbred horses
that earn a purse at a participating West Virginia meet shall
receive a bonus award calculated at the end of the year as a
percentage of the fund dedicated to the breeders/raisers, which
shall be sixty percent of the fund available for distribution in
any one year. The total amount available for the
breeders'/raisers' awards shall be distributed according to the
ratio of purses earned by an accredited race horse to the total
amount earned in the participating races by all accredited race
horses for that year as a percentage of the fund dedicated to the
breeders/raisers. However, no breeder/raiser may receive from
the fund dedicated to breeders'/raisers' awards an amount in
excess of the earnings of the accredited horse at West Virginia
meets. In addition, should a horse's breeder and raiser qualify
for the same award on the same horse, they will each be awarded
one half of the proceeds. The bonus referred to in this
subdivision may only be paid on the first $100,000 of any purse
and not on any amounts in excess of the first $100,000.
(2) The owner of an accredited West Virginia sire of an
accredited thoroughbred horse that earns a purse in any race at a
participating West Virginia meet shall receive a bonus award
calculated at the end of the year as a percentage of the fund
dedicated to sire owners, which shall be fifteen percent of the
fund available for distribution in any one year. The total
amount available for the sire owners' awards shall be distributed
according to the ratio of purses earned by the progeny of
accredited West Virginia stallions in the participating races for
a particular stallion to the total purses earned by the progeny
of all accredited West Virginia stallions in the participating
races. However, no sire owner may receive from the fund
dedicated to sire owners an amount in excess of thirty-five
percent of the accredited earnings for each sire. The bonus
referred to in this subdivision shall only be paid on the first
$100,000 of any purse and not on any amounts in excess of the
first $100,000.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any participating race at a West Virginia meet shall
receive a restricted purse supplement award calculated at the end of the year, which shall be twenty-five percent of the fund
available for distribution in any one year, based on the ratio of
the earnings in the races of a particular race horse to the total
amount earned by all accredited race horses in the participating
races during that year as a percentage of the fund dedicated to
purse supplements. However, the owners may not receive from the
fund dedicated to purse supplements an amount in excess of
thirty-five percent of the total accredited earnings for each
accredited race horse. The bonus referred to in this subdivision
shall only be paid on the first $100,000 of any purse and not on
any amounts in excess of the first $100,000.
(4) In no event may purses earned at a meet held at a track
which did not make a contribution to the Thoroughbred Development
Fund out of the daily pool on the day the meet was held qualify
or count toward eligibility for an award under this subsection.
(5) Any balance in the breeders/raisers, sire owners and
purse supplement funds after yearly distributions shall first be
used to fund the races established in subsection (f) of this
section. Any amount not so used shall revert into the general
account of the Thoroughbred Development Fund for each racing
association or licensee for distribution in the next year.
Distribution shall be made on the fifteenth day of each
February for the preceding year's achievements.
(f) (1) Each pari-mutuel thoroughbred horse track shall
provide at least one restricted race per racing day:
Provided,
That sufficient horses and funds are available. For purposes of
this subsection, there are sufficient horses if there are at
least seven single betting interests received for the race:
Provided further, That, if sufficient horses and funds are
available, any thoroughbred horse racetrack whose licensee
participated in the Thoroughbred Development Fund for at least
four consecutive calendar years prior to December 31, 1992, shall
provide two restricted races per racing day, at least one of
which may be split at the discretion of the racing secretary.
The restricted race required by this section must be included in
the first nine races written in the condition book for that
racing day.
(2) The restricted races established in this subsection
shall be administered by a three-member committee at each track
consisting of:
(A) The racing secretary
at each track;
(B) A member appointed by the authorized representative of a
majority of the owners and trainers at the thoroughbred track;
and
(C) A member appointed by the West Virginia Thoroughbred
Breeders Association.
(3) Restricted races shall be funded by each racing
association from:
(A) Moneys placed in the General Purse Fund:
Provided, That
a thoroughbred horse racetrack which did not participate in the West Virginia Thoroughbred Development Fund for a period of more
than four consecutive years prior to December 31, 1992, may fund
restricted races in an amount not to exceed $1 million per year.
(B) Moneys as provided in subdivision (5), subsection (e) of
this section, which shall be placed in a special fund called the
"West Virginia Accredited Race Fund".
(4) The racing schedules, purse amounts and types of races
are subject to the approval of the West Virginia Racing
Commission.
(5) If less than seventy-five percent of the restricted
races required by this subsection fail to receive enough entries
to race, the Racing Commission shall, on a quarterly basis,
dedicate funds in each fund back to the general purse fund of the
racing association or licensee:
Provided, That no moneys may be
dedicated back to a General purse fund if the dedication would
leave less than $250,000 in the fund.
(g) As used in this section, "West Virginia bred-foal" means
a horse that was born in the State of West Virginia.
(h) To qualify for the West Virginia Accredited Race Fund,
the breeder must qualify under one of the following:
(1) The breeder of the West Virginia bred-foal is a West
Virginia resident;
(2) The breeder of the West Virginia bred-foal is not a West
Virginia resident, but keeps his or her breeding stock in West
Virginia year round; or
(3) The breeder of the West Virginia bred-foal is not a West
Virginia resident and does not qualify under subdivision (2) of
this subsection, but either the sire of the West Virginia bred-
foal is a West Virginia stallion, or the mare is covered only by
a West Virginia accredited stallion or stallions before December
31 of the calendar year following the birth of that West Virginia
bred-foal.
(i) From July 1, 2001, West Virginia accredited thoroughbred
horses have preference for entry in all accredited races at a
thoroughbred race track at which the licensee participates in the
West Virginia Thoroughbred Development Fund.
(j) Beginning July 1, 2006, any racing association licensed
by the Racing Commission to conduct thoroughbred racing and
permitting and conducting pari-mutuel wagering under the
provisions of this article must have a West Virginia Thoroughbred
Racing Breeders Program.
(k) The Commission shall, during calendar year 2009, conduct
a study of the adequacy of funding provided for the Thoroughbred
Development Fund at any thoroughbred racetrack which has not
participated in the West Virginia Thoroughbred Development Fund
for a period of more than four consecutive calendar years prior
to December 31, 1992, and shall report its findings and
recommendations to the Joint Committee on Government and Finance
on or before December 1, 2009.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-10. Accounting and reporting; commission to provide
communications protocol data; distribution of net
terminal income; remittance through electronic
transfer of funds; establishment of accounts and
nonpayment penalties; commission control of
accounting for net terminal income; settlement of
accounts; manual reporting and payment may be
required; request for reports; examination of
accounts and records.
(a) The commission shall provide to manufacturers, or
applicants applying for a manufacturer's permit, the protocol
documentation data necessary to enable the respective
manufacturer's video lottery terminals to communicate with the
commission's central computer for transmitting auditing program
information and for activation and disabling of video lottery
terminals.
(b) The gross terminal income of a licensed racetrack shall
be remitted to the commission through the electronic transfer of
funds. Licensed racetracks shall furnish to the commission all
information and bank authorizations required to facilitate the
timely transfer of moneys to the commission. Licensed racetracks
must provide the commission thirty days' advance notice of any
proposed account changes in order to assure the uninterrupted
electronic transfer of funds. From the gross terminal income
remitted by the licensee to the commission, the commission shall
deduct an amount sufficient to reimburse the commission for its
actual costs and expenses incurred in administering racetrack
video lottery at the licensed racetrack, and the resulting amount
after the deduction is the net terminal income. The amount
deducted for administrative costs and expenses of the commission
may not exceed four percent of gross terminal income:
Provided,
That any amounts deducted by the commission for its actual costs
and expenses that exceeds its actual costs and expenses shall be
deposited into the state Lottery Fund. For the fiscal years
ending June 30, 2006, 2007, 2008, 2009, 2010 and 2011, the term
"actual costs and expenses" shall include transfers of no more
than $20 million in any year to the Revenue Center Construction
Fund created by subsection (l), section eighteen, article twenty-
two of this chapter for the purpose of constructing a state
office building. For all fiscal years beginning on or after July
1, 2001, the commission shall not receive an amount of gross
terminal income in excess of the amount of gross terminal income
received during the fiscal year ending on June 30, 2001, but four
percent of any amount of gross terminal income received in excess
of the amount of gross terminal income received during the fiscal
year ending on June 30, 2001, shall be deposited into the fund
established in section eighteen-a, article twenty-two of this
chapter.
(c) Net terminal income shall be divided as set out in this
subsection. For all fiscal years beginning on or after July 1,
2001, any amount of net terminal income received in excess of the
amount of net terminal income received during the fiscal year
ending on June 30, 2001, shall be divided as set out in section
ten-b of this article. The licensed racetrack's share is in lieu
of all lottery agent commissions and is considered to cover all
costs and expenses required to be expended by the licensed
racetrack in connection with video lottery operations. The
division shall be made as follows:
(1) The commission shall receive thirty percent of net
terminal income, which shall be paid into the state Lottery Fund
as provided in section ten-a of this article;
(2) Until the July 1, 2005, fourteen percent of net terminal
income at a licensed racetrack shall be deposited in the special
fund established by the licensee, and used for payment of regular
purses in addition to other amounts provided for in article
twenty- three, chapter nineteen of this code, on and after July
1, 2005, the rate shall be seven percent of net terminal income;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income:
Provided,
That:
(A) Beginning July 1, 1999, and thereafter, any amount in
excess of the two percent received during the fiscal year 1999 by
a county in which a racetrack is located that has participated in
the West Virginia Thoroughbred Development Fund since on or
before January 1, 1999 shall be divided as follows:
(i) The county shall receive fifty percent of the excess
amount; and
(ii) The municipalities of the county shall receive fifty
percent of the excess amount, said fifty percent to be divided
among the municipalities on a per capita basis as determined by
the most recent decennial United States census of population; and
(B) Beginning July 1, 1999, and thereafter, any amount in
excess of the two percent received during the fiscal year 1999 by
a county in which a racetrack other than a racetrack described in
paragraph (A) of this proviso is located and where the racetrack
has been located in a municipality within the county since on or
before January 1, 1999 shall be divided, if applicable, as
follows:
(i) The county shall receive fifty percent of the excess
amount; and
(ii) The municipality shall receive fifty percent of the
excess amount; and
(C) This proviso shall not affect the amount to be received
under this subdivision by any other county other than a county
described in paragraph (A) or (B) of this proviso;
(4) One percent of net terminal income shall be paid for and
on behalf of all employees of the Licensed Racing Association by
making a deposit into a special fund to be established by the Racing Commission to be used for payment into the pension plan
for all employees of the Licensed Racing Association;
(5) The West Virginia Thoroughbred Development Fund created
under section thirteen-b, article twenty-three, chapter nineteen
of this code and the West Virginia Greyhound Breeding Development
Fund created under section ten of said article shall receive an
equal share of a total of not less than one and one-half percent
of the net terminal income;
(6) The West Virginia Racing Commission shall receive one
percent of the net terminal income which shall be deposited and
used as provided in section thirteen-c, article twenty-three,
chapter nineteen of this code.
(7) A licensee shall receive forty-six and one-half percent
of net terminal income.
(8)(A) The Tourism Promotion Fund established in section
twelve, article two, chapter five-b of this code shall receive
three percent of the net terminal income:
Provided, That for the
fiscal year beginning July 1, 2003, the tourism commission shall
transfer from the Tourism Promotion Fund $5 million of the three
percent of the net terminal income described in this section and
section ten-b of this article into the fund administered by the
West Virginia Economic Development Authority pursuant to section
seven, article fifteen, chapter thirty-one of this code, $5
million into the Capitol Renovation and Improvement Fund
administered by the Department of Administration pursuant to
section six, article four, chapter five-a of this code and $5
million into the tax reduction and federal funding increased
compliance fund; and
(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, for each fiscal year beginning after
June 30, 2004, this three percent of net terminal income and the
three percent of net terminal income described in paragraph (B),
subdivision (8), subsection (a), section ten-b of this article
shall be distributed as provided in this paragraph as follows:
(i) 1.375 percent of the total amount of net terminal income
described in this section and in section ten-b of this article
shall be deposited into the Tourism Promotion Fund created under
section twelve, article two, chapter five-b of this code;
(ii) 0.375 percent of the total amount of net terminal
income described in this section and in section ten-b of this
article shall be deposited into the Development Office Promotion
Fund created under section three-b, article two, chapter five-b
of this code;
(iii) 0.5 percent of the total amount of net terminal income
described in this section and in section ten-b of this article
shall be deposited into the Research Challenge Fund created under
section ten, article one-b, chapter eighteen-b of this code;
(iv) 0.6875 percent of the total amount of net terminal
income described in this section and in section ten-b of this
article shall be deposited into the Capitol Renovation and Improvement Fund administered by the Department of Administration
pursuant to section six, article four, chapter five-a of this
code; and
(v) 0.0625 percent of the total amount of net terminal
income described in this section and in section ten-b of this
article shall be deposited into the 2004 Capitol Complex Parking
Garage Fund administered by the Department of Administration
pursuant to section five-a, article four, chapter five-a of this
code;
(9)(A) On and after July 1, 2005, seven percent of net
terminal income shall be deposited into the Workers' Compensation
Debt Reduction Fund created in section five, article two-d,
chapter twenty-three of this code:
Provided, That in any fiscal
year when the amount of money generated by this subdivision
totals $11 million,
that $11 million shall be deposited in the
West Virginia Racing Commission Special Account - Unredeemed
Pari-Mutuel Tickets account as established by subsection (b),
section thirteen, article twenty-three, chapter nineteen of this
code and distributed in accordance with subdivision (6) of that
subsection. All subsequent distributions under this subdivision
shall be deposited in the special fund established by the
licensee and used for the payment of regular purses in addition
to the other amounts provided for in article twenty-three,
chapter nineteen of this code;
(B) The deposit of the seven percent of net terminal income
into the Worker's Compensation Debt Reduction Fund pursuant to
this subdivision shall expire and not be imposed with respect to
these funds and shall be deposited in the special fund
established by the licensee and used for payment of
regular
purses in addition to the other amounts provided for in the
amounts required by article twenty-three, chapter nineteen of
this code, on and after the first day of the month following the
month in which the Governor certifies to the Legislature that:
(i) The revenue bonds issued pursuant to article two-d, chapter
twenty-three of this code, have been retired or payment of the
debt service provided for; and (ii) that an independent certified
actuary has determined that the unfunded liability of the old
fund, as defined in chapter twenty-three of this code, has been
paid or provided for in its entirety; and
(10) The remaining one percent of net terminal income shall
be deposited as follows:
(A) For the fiscal year beginning July 1, 2003, the veterans
memorial program shall receive one percent of the net terminal
income until sufficient moneys have been received to complete the
veterans memorial on the grounds of the State Capitol Complex in
Charleston, West Virginia. The moneys shall be deposited in the
State Treasury in the Division of Culture and History special
fund created under section three, article one-i, chapter twenty-
nine of this code:
Provided, That only after sufficient moneys
have been deposited in the fund to complete the veterans memorial and to pay in full the annual bonded indebtedness on the veterans
memorial, not more than $20,000 of the one percent of net
terminal income provided for in this subdivision shall be
deposited into a Special Revenue Fund in the State Treasury, to
be known as the "John F. 'Jack' Bennett Fund". The moneys in
this fund shall be expended by the Division of Veterans Affairs
to provide for the placement of markers for the graves of
veterans in perpetual cemeteries in this state. The Division of
Veterans Affairs shall promulgate legislative rules pursuant to
the provisions of article three, chapter twenty-nine-a of this
code specifying the manner in which the funds are spent,
determine the ability of the surviving spouse to pay for the
placement of the marker and setting forth the standards to be
used to determine the priority in which the veterans grave
markers will be placed in the event that there are not sufficient
funds to complete the placement of veterans grave markers in any
one year, or at all. Upon payment in full of the bonded
indebtedness on the Veterans Memorial, $100,000 of the one
percent of net terminal income provided for in this subdivision
shall be deposited in the special fund in the Division of Culture
and History created under section three, article one-I, chapter
twenty-nine of this code and be expended by the Division of
Culture and History to establish a West Virginia Veterans
Memorial Archives within the cultural center to serve as a
repository for the documents and records pertaining to the
Veterans Memorial, to restore and maintain the monuments and
memorial on the capitol grounds:
Provided, however, That
$500,000 of the one percent of net terminal income shall be
deposited in the state Treasury in a special fund of the
Department of Administration, created under section five, article
four, chapter five-a of this code, to be used for construction
and maintenance of a parking garage on the state Capitol Complex;
and the remainder of the one percent of net terminal income shall
be deposited in equal amounts in the Capitol Dome and
Improvements Fund created under section two, article four,
chapter five-a of this code and cultural facilities and Capitol
Resources Matching Grant Program Fund created under section
three, article one of this chapter.
(B) For each fiscal year beginning after June 30, 2004:
(i) $500,000 of the one percent of net terminal income shall
be deposited in the State Treasury in a special fund of the
Department of Administration, created under section five, article
four, chapter five-a of this code, to be used for construction
and maintenance of a parking garage on the State Capitol Complex;
and
(ii) The remainder of the one percent of net terminal income
and all of the one percent of net terminal income described in
paragraph (B), subdivision (9), subsection (a), section ten-b of
this article twenty-two-a shall be distributed as follows: The
net terminal income shall be deposited in equal amounts into the Capitol Dome and Capitol Improvements Fund created under section
two, article four, chapter five-a of this code and the Cultural
Facilities and Capitol Resources Matching Grant Program Fund
created under section three, article one, chapter twenty-nine of
this code until a total of $1,500,000 is deposited into the
cultural facilities and Capitol Resources Matching Grant Program
Fund; thereafter, the remainder shall be deposited into the
Capitol Dome and Capitol Improvements Fund.
(d) Each licensed racetrack shall maintain in its account an
amount equal to or greater than the gross terminal income from
its operation of video lottery machines, to be electronically
transferred by the commission on dates established by the
commission. Upon a licensed racetrack's failure to maintain this
balance, the commission may disable all of a licensed racetrack's
video lottery terminals until full payment of all amounts due is
made. Interest shall accrue on any unpaid balance at a rate
consistent with the amount charged for state income tax
delinquency under chapter eleven of this code. The interest
shall begin to accrue on the date payment is due to the
commission.
(e) The commission's central control computer shall keep
accurate records of all income generated by each video lottery
terminal. The commission shall prepare and mail to the licensed
racetrack a statement reflecting the gross terminal income
generated by the licensee's video lottery terminals. Each
licensed racetrack shall report to the commission any
discrepancies between the commission's statement and each
terminal's mechanical and electronic meter readings. The
licensed racetrack is solely responsible for resolving income
discrepancies between actual money collected and the amount shown
on the accounting meters or on the commission's billing
statement.
(f) Until an accounting discrepancy is resolved in favor of
the licensed racetrack, the commission may make no credit
adjustments. For any video lottery terminal reflecting a
discrepancy, the licensed racetrack shall submit to the
commission the maintenance log which includes current mechanical
meter readings and the audit ticket which contains electronic
meter readings generated by the terminal's software. If the
meter readings and the commission's records cannot be reconciled,
final disposition of the matter shall be determined by the
commission. Any accounting discrepancies which cannot be
otherwise resolved shall be resolved in favor of the commission.
(g) Licensed racetracks shall remit payment by mail if the
electronic transfer of funds is not operational or the commission
notifies licensed racetracks that remittance by this method is
required. The licensed racetracks shall report an amount equal
to the total amount of cash inserted into each video lottery
terminal operated by a licensee, minus the total value of game
credits which are cleared from the video lottery terminal in exchange for winning redemption tickets, and remit the amount as
generated from its terminals during the reporting period. The
remittance shall be sealed in a properly addressed and stamped
envelope and deposited in the United States mail no later than
noon on the day when the payment would otherwise be completed
through electronic funds transfer.
(h) Licensed racetracks may, upon request, receive
additional reports of play transactions for their respective
video lottery terminals and other marketing information not
considered confidential by the commission. The commission may
charge a reasonable fee for the cost of producing and mailing any
report other than the billing statements.
(i) The commission has the right to examine all accounts,
bank accounts, financial statements and records in a licensed
racetrack's possession, under its control or in which it has an
interest and the licensed racetrack shall authorize all third
parties in possession or in control of the accounts or records to
allow examination of any of those accounts or records by the
commission.
ARTICLE 22C. WEST VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT.
§29-22C-27. West Virginia Lottery Racetrack Table Games Fund;
Community-Based Service Fund; State Debt
Reduction Fund; distribution of funds.
(a) (1) The special fund in the State Treasury known as the
West Virginia Lottery Racetrack Table Games Fund is continued and
all tax collected under this article shall be deposited with the
State Treasurer and placed in the West Virginia Lottery Racetrack
Table Games Fund. The fund shall be an interest-bearing account
with all interest or other return earned on the money of the fund
credited to and deposited in the fund.
(2) Notwithstanding any provision of this article to the
contrary, all racetrack table games license fees received by the
commission pursuant to section eight of this article shall be
deposited into the Community-Based Service Fund which is
continued in the State Treasury. Moneys of the fund shall be
expended by the Bureau of Senior Services upon appropriation of
the Legislature solely for the purpose of enabling the aged and
disabled citizens of this state to maintain their residency in
the community-based setting through the provision of home and
community-based services.
(b) From the gross amounts deposited into the Racetrack
Table Games Fund pursuant to subsection (a) of this section, the
commission shall:
(1) Retain an amount for the administrative expenses of the
commission as determined by the commission in accordance with
subsection (e) of this section;
(2) Transfer two and one-half percent of adjusted gross
receipts from all thoroughbred racetracks with West Virginia
Lottery table games to the special funds established by each
thoroughbred racetrack table games licensees for the payment of regular racetrack purses, the amount being divided
equally on a
pro rata basis between the special funds of each thoroughbred
racetrack table games licensee and transfer two and one-half
percent of adjusted gross receipts from all greyhound racetracks
with West Virginia Lottery table games to the special funds
established by each greyhound racetrack table games licensees for
the payment of regular racetrack purses, the amount being divided
equally between the special funds of each greyhound racetrack
table games licensee;
(3) Transfer two percent of the adjusted gross receipts from
all licensed racetracks to the West Virginia Thoroughbred
Development Fund created under section thirteen-b, article
twenty-three, chapter nineteen of this code and the West Virginia
Greyhound Breeding Development Fund created under section ten,
article twenty-three, chapter nineteen of this code. The total
amount transferred under this subdivision shall be divided pro
rata among the development funds for each racetrack table games
licensee based on relative adjusted receipts from each racetrack.
The amounts transferred to these funds may not be used for the
benefit of any person or activity other than at or associated
with a racetrack table games licensee;
(4) Transfer one percent of the adjusted gross receipts from
each licensed racetrack to the county commissions of the counties
where racetracks with West Virginia Lottery table games are
located. The one percent transferred under this subdivision
shall be divided pro rata among the counties with a racetrack
with West Virginia Lottery table games based on relative adjusted
gross receipts from each county's racetrack:
Provided, That the
county board of education of a growth county, as that term is
defined in section three, article twenty, chapter seven of this
code, which has enacted the Local Powers Act, and in which county
a racetrack is located that has participated in the West Virginia
Thoroughbred Development Fund since on or before January 1, 1991,
shall receive the one percent of adjusted gross receipts as
provided in this subdivision for the purpose of capital
improvements;
(5) Transfer two percent of the adjusted gross receipts from
each licensed racetrack to the governing bodies of municipalities
within counties where racetracks with West Virginia Lottery table
games are located, which shall be allocated as follows:
(A) One half of the amounts transferred under this
subdivision shall be allocated to the municipalities within each
county having a racetrack table games licensee, based on relative
adjusted gross receipts from West Virginia Lottery table games
from those racetracks and the total amount allocated to the
municipalities within a county shall be divided pro rata among
the municipalities based on each municipality's population
determined at the most recent United States decennial census of
population:
Provided, That: (i) For each allocation, when a
municipality is physically located in two or more counties, only that portion of its population residing in the county where the
authorized table games are located shall be considered; (ii) a
single municipality in a county where West Virginia Lottery
racetrack table games are played may not receive a total share
under this paragraph that is in excess of seventy-five percent of
the total distribution under this paragraph for the county in
which the municipality is located; and (iii) a municipality
receiving moneys under this paragraph may not receive an amount
which is less than that received by a municipality under
provisions of subdivision (4), subsection (d) of this section;
and
(B) One half of the amounts transferred under this
subdivision shall be allocated pro rata to the municipalities
within all the counties, having a racetrack table games licensee
based on each municipality's population determined at the most
recent United States decennial census of population:
Provided,
That: (i) A municipality which received funds above its pro rata
share pursuant to subpart (iii), paragraph (A) of this
subdivision may not receive an allocation under this paragraph;
(ii) for each allocation, when a municipality is physically
located in two or more counties, only that portion of its
population residing in the county where the authorized table
games are located shall be considered; and (iii) a single
municipality in a county where West Virginia Lottery racetrack
games are played may not receive a total share under this
paragraph that is in excess of twenty-five percent of the total
transfers under this paragraph:
Provided, however, That the
county board of education of a growth county, as that term is
defined in section three, article twenty, chapter seven of this
code, which has enacted the Local Powers Act, and in which county
a racetrack is located that has participated in the West Virginia
Thoroughbred Development Fund since on or before January 1, 1991,
shall receive the two percent of adjusted gross receipts as
provided in this subdivision for the purpose of capital
improvements;
(6) Transfer one half of one percent of the adjusted gross
receipts to the governing bodies of municipalities in which a
racetrack table games licensee is located. The municipalities
shall each receive an equal share of the total amount allocated
under this subdivision:
Provided, That distribution under this
subdivision may not be made to any municipality which did not
have a licensed racetrack within its municipal boundaries as they
existed on January 1, 2007:
Provided, however, That if no
racetrack table games licensee is located within a municipality,
a transfer may not be made under this subdivision; and
(7) Distribute the remaining amounts, hereinafter referred
to as the net amounts in the Racetrack Table Games Funds, in
accordance with the provisions of subsection (d) of this section.
(c) Beginning with the fiscal year following the licensing
of every licensed racetrack to offer West Virginia lottery racetrack table games under this article, subsection (b) of this
section shall be superseded and replaced by this subsection for
distribution of the balances in the fund established by
subsection (a) of this section. From the gross amounts deposited
into the fund, the commission shall:
(1) Retain an amount for the administrative expenses of the
commission as determined by the commission in accordance with
subsection(e) of this section;
(2) Transfer two and one-half percent of adjusted gross
receipts from all thoroughbred racetracks with West Virginia
Lottery table games to the special funds established by each
thoroughbred racetrack table games licensee for the payment of
regular racetrack purses, the amount being divided
equally on a
pro rata basis between the special funds of each thoroughbred
racetrack table games licensee and transfer two and one-half
percent of adjusted gross receipts from all greyhound racetracks
with West Virginia Lottery table games to the special funds
established by each greyhound racetrack table games licensee for
the payment of regular racetrack purses, the amount being divided
equally between the special funds of each greyhound racetrack
table games licensee;
(3) Transfer two percent of the adjusted gross receipts from
all licensed racetracks to the West Virginia Thoroughbred
Development Fund created under section thirteen-b, article
twenty-three, chapter nineteen of this code and the West Virginia
Greyhound Breeding Development Fund created under section ten,
article twenty-three, chapter nineteen of this code. The total
amount transferred under this subdivision shall be divided pro
rata among the development funds for each racetrack table games
licensee based on relative adjusted receipts from each racetrack.
The amounts transferred to these funds may not be used for the
benefit of any person or activity other than at or associated
with a racetrack table games licensee;
(4) Transfer two percent of the adjusted gross receipts from
each licensed racetrack to the county commissions of the counties
where racetracks with West Virginia Lottery table games are
located. The money transferred under this subdivision shall be
divided pro rata among the counties with a racetrack with West
Virginia Lottery table games based on relative adjusted gross
receipts from each county's racetrack:
Provided, That the county
board of education of a growth county, as that term is defined in
section three, article twenty, chapter seven of this code, which
has enacted the Local Powers Act, and in which a racetrack is
located that has participated in the West Virginia Thoroughbred
Development Fund since on or before January 1, 1991, shall
receive one half of that county's share of adjusted gross
receipts as provided in this subdivision for the purpose of
capital improvements;
(5) Transfer three percent of the adjusted gross receipts
from each licensed racetrack to the governing bodies of municipalities within counties where racetracks with West
Virginia Lottery table games are located, which shall be
allocated as follows:
(A) One half of the money transferred by this subdivision
shall be allocated to the municipalities within each county,
other than a county described in paragraph (C) of this
subdivision, having a racetrack table games licensee based on
relative adjusted gross receipts from West Virginia Lottery table
games from those racetracks and the total amount allocated to the
municipalities within a county shall be divided pro rata among
the municipalities based on each municipality's population
determined at the most recent United States decennial census of
population:
Provided, That: (i) For each allocation, when a
municipality is physically located in two or more counties, only
that portion of its population residing in the county where the
authorized table games are located shall be considered; (ii) a
single municipality in a county where West Virginia Lottery
racetrack table games are played may not receive a total share
under this paragraph that is in excess of seventy-five percent of
the total distribution under this paragraph for the county in
which the municipality is located; and (iii) a municipality
receiving moneys under this paragraph may not receive an amount
which is less than that received by a municipality under
provisions of subdivision (4), subsection (d) of this section.
(B) One half of the money transferred under this subdivision
shall be allocated pro rata to the municipalities within all the
counties, other than a county described in paragraph (C) of this
subdivision, having a racetrack table games licensee based on
each municipality's population determined at the most recent
United States decennial census of population:
Provided, That:
(i) A municipality which received funds above its pro rata share
pursuant to subparagraph (iii), paragraph (A) of this subdivision
shall not receive an allocation under this paragraph; (ii) for
each allocation, when a municipality is physically located in two
or more counties, only that portion of its population residing in
the county where the authorized table games are located shall be
considered; and (iii) a single municipality in a county where
West Virginia Lottery racetrack games are played may not receive
a total share under this paragraph that is in excess of twenty-
five percent of the total transfers under this paragraph.
(C) Notwithstanding the provisions of paragraphs (A) and (B)
of this subdivision, when a racetrack is located in a growth
county, as that term is defined in section three, article twenty,
chapter seven of this code, which has enacted the Local Powers
Act, and in which county a racetrack is located that has
participated in the West Virginia Thoroughbred Development Fund
since on or before January 1, 1991, the county board of education
shall receive two thirds of the share of adjusted gross receipts
from West Virginia Lottery table games from the racetrack in the
county as provided in this subdivision and the municipalities within the county shall share the remaining one third of the
total amount allocated as provided in this paragraph. The
municipal one-third share shall be divided pro rata among the
municipalities based on each municipality's population determined
at the most recent United States decennial census of population.
All money transferred under this paragraph shall be used by the
county board of education and by the municipalities for the
purpose of capital improvements;
(6) Transfer one half of one percent of the adjusted gross
receipts to the governing bodies of municipalities in which a
racetrack table games licensee is located. The municipalities
shall each receive an equal share of the total amount allocated
under this subdivision:
Provided, That distribution under this
subdivision may not be made to any municipality that did not have
a licensed racetrack within its municipal boundaries as they
existed on January 1, 2007:
Provided, however, That if no
racetrack table games licensee is located within a municipality,
a transfer may not be made under this subdivision; and
(7) Distribute the remaining amounts, hereinafter referred
to as the net amounts in the Racetrack Table Games Funds, in
accordance with the provisions of subsection (d) of this section.
(d) From the net amounts in the Racetrack Table Games Fund,
the commission shall:
(1) Transfer seventy-six percent to the State Debt Reduction
Fund which is hereby continued in the State Treasury. Moneys of
the fund shall be expended solely for the purpose of accelerating
the reduction of existing unfunded liabilities and existing bond
indebtedness of the state and shall be expended or transferred
only upon appropriation of the Legislature;
(2) Transfer four percent, divided pro rata based on
relative adjusted gross receipts from the individual licensed
racetracks for and on behalf of all employees of each licensed
racing association, into a special fund to be established by the
Racing Commission to be used for payment into the pension plan
for all employees of each licensed racing association;
(3) Transfer ten percent, to be divided and paid in equal
shares, to each county commission in the state that is not
eligible to receive a distribution under subdivision (4),
subsection (b) of this section:
Provided, That funds transferred
to county commissions under this subdivision shall be used only
to pay regional jail expenses and the costs of infrastructure
improvements and other capital improvements; and
(4) Transfer ten percent, to be divided and paid in equal
shares, to the governing bodies of each municipality in the state
that is not eligible to receive a distribution under subdivisions
(5) and (6), subsection (b) of this section:
Provided, That
funds transferred to municipalities under this subdivision shall
be used only to pay for debt reduction in municipal police and
fire pension funds and the costs of infrastructure improvements
and other capital improvements.
(e) All expenses of the commission incurred in the
administration and enforcement of this article shall be paid from
the Racetrack Table Games Fund, including reimbursement of state
law-enforcement agencies for services performed at the request of
the commission pursuant to this article. The commission's
expenses associated with a particular racetrack with authorized
table games under this article may not exceed three percent of
the total annual adjusted gross receipts received from that
licensee's operation of table games under this article,
including, but not limited to, all license fees or other amounts
attributable to the licensee's operation of table games under
this article, except as provided in subdivision (2), subsection
(a) of this section. However, for the fiscal year following the
licensing of every licensed racetrack to offer West Virginia
lottery racetrack table games under this article and for the
fiscal year thereafter, the commission's expenses associated with
a particular racetrack with authorized table games under this
article may not exceed four percent of the total annual adjusted
gross receipts received from that licensee's operation of table
games under this article, including, but not limited to, all
license fees or other amounts attributable to the licensee's
operation of table games under this article, except as provided
in subdivision (2), subsection (a) of this section. These
expenses shall either be allocated to the racetrack with West
Virginia Lottery table games for which the expense is incurred,
if practicable, or be treated as general expenses related to all
racetrack table games facilities and be allocated pro rata among
the racetrack table games facilities based on the ratio that
annual adjusted gross receipts from operation of table games at
each racetrack with West Virginia Lottery table games bears to
total annual adjusted gross receipts from operation of table
games at all racetracks with West Virginia Lottery table games
during the fiscal year of the state. From this allowance, the
commission shall transfer at least $100,000 but not more than
$500,000 into the Compulsive Gambling Treatment Fund created in
section nineteen, article twenty-two-a of this chapter.
NOTE: The purpose of this bill is to require all of an
established $11 million Racetrack Video Lottery Fund to be
transferred into the existing West Virginia Racing Commission
Special Account - Unredeemed Pari-Mutuel Tickets account to be
used to pay certain current and unpaid debt payments. The bill
also provides that when those debt obligations have been fully
met all monies deposited in the Video Lottery Fund will be used
for the Workers' Compensation debt service until that debt is
retired. The bill removes a provision concerning the
Thoroughbred Development Fund. The bill eliminates a $200,000
annual payment for providing health and disability benefits to jockeys and their dependents and also eliminates an obsolete
provision concerning a special trust fund. The bill further
provides that the Racing Commission may use current funds to pay
previously incurred obligations. Additionally, the bill requires
certain obligations be paid on a monthly basis and that certain
receipts from all thoroughbred racetracks be divided on a pro
rata basis between those racetracks. The bill modifies a current
treasury account to include funds for greyhound adoption, spaying
and neutering.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.