H. B. 2901
(By Delegates Walters, Carmichael and Lane)
[Introduced March 7, 2005; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §29-22B-1408 of the Code of West
Virginia, 1931, as amended, relating to distribution of
state's share of gross terminal income from limited video
lottery; increasing the lottery Commission's share of gross
profits from video lottery gross terminal income; increasing
the share of net terminal income distributed to counties and
incorporated municipalities.
Be it enacted by the Legislature of West Virginia:
That §29-22B-1408 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 22B. LIMITED VIDEO LOTTERY.
§29-22B-1408. Distribution of state's share of gross terminal
income.
(a) The state's share of gross terminal income is calculated
as follows:
(1) The Commission shall deposit two percent of gross terminal
income into the State Lottery Fund for the Commission's costs and
expenses incurred in administering this article. From this amount,
not less than one hundred fifty thousand dollars nor more than one
million dollars per fiscal year, as determined by the Commission
each year, shall be transferred to the compulsive gambling
treatment fund created in section nineteen, article
twenty-a
twenty-two-a of this chapter. In the event that the percentage
allotted under this subsection for the Commission's costs and
expenses incurred in administering this article generates a
surplus, the surplus shall be allowed to accumulate to an amount
not to exceed two hundred fifty thousand dollars. On a monthly
basis, the Director shall report to the Joint Committee on
Government and Finance of the Legislature any surplus in excess of
two hundred fifty thousand dollars and remit to the State Treasurer
the entire amount of those surplus funds in excess of two hundred
fifty thousand dollars to be deposited in the Fund established in
section eighteen-a,
chapter twenty-nine, article twenty-two
section
eighteen-a of this chapter.
(2) Gross profits are determined by deducting the percentage
described in subdivision (1) of this subsection, from gross
terminal income.
(3)
(i) The Commission shall receive thirty percent of gross
profits as defined in subdivision (2) of this subsection except as otherwise provided in this subdivision. On the first day of June,
2002, the Commission shall calculate the aggregate average daily
gross terminal income for all operating video lottery terminals
during the preceding three-month period. Thereafter, the
Commission shall make the calculation on the first day of the month
preceding the months of October, January, April and July of each
year. So long as the aggregate average gross terminal income per
day for the operating video lottery terminals does not exceed sixty
dollars, the Commission's share of gross profits shall continue to
be thirty percent for the succeeding quarter of the year beginning
the first day of July. Beginning on the first day of July, 2002,
and the first days of October, January, April and July in 2002, and
thereafter, if the Commission's calculation of aggregate average
daily gross terminal income per video lottery terminal yields an
amount greater than sixty dollars, one of the following schedules
apply: If the amount is greater than sixty dollars per day but not
greater than eighty dollars per day, the Commission's share of
gross profits for the ensuing quarter beginning the first day of
the quarter of the year described in this subdivision shall be
thirty-four percent; if the amount is greater than eighty dollars
per day but not greater than one hundred dollars per day, the
Commission's share of gross profits for the ensuing quarter
beginning the first day of the quarter of the year described in
this subdivision shall be thirty-eight percent; if the amount is greater than one hundred dollars per day but not greater than one
hundred twenty dollars per day, the Commission's share of gross
profits for the ensuing quarter beginning the first day of the
quarter of the year described in this subdivision shall be
forty-two percent; if the amount is greater than one hundred twenty
dollars per day but not greater than one hundred forty dollars per
day, the Commission's share of gross profits for the ensuing
quarter beginning the first day of the quarter of the year
described in this subdivision shall be forty-six percent; if the
amount is greater than one hundred forty dollars per day, the
Commission's share of gross profits for the ensuing quarter
beginning the first day of the quarter of the year described in
this subdivision shall be fifty percent. This amount shall be
known as net terminal income.
(ii) Beginning on the first days of July and October, two
thousand five, and thereafter on the first days of January, April
and July in two thousand six, and each year thereafter, if the
aggregate average gross terminal income per day for the operating
video terminals does not exceed sixty dollars, the Commission's
share of gross profits for the ensuing quarter shall be thirty two
dollars; if the Commission's calculation of aggregate average daily
gross terminal income per video lottery terminal yields an amount
greater than sixty dollars, one of the following schedules apply:
If the amount is greater than sixty dollars per day but not greater than eighty dollars per day, the Commission's share of gross
profits for the ensuing quarter shall be thirty-eight percent; if
the amount is greater than eighty dollars per day but not greater
than one hundred dollars per day, the Commission's share of gross
profits for the ensuing quarter shall be forty-two percent; if the
amount is greater than one hundred dollars per day but not greater
than one hundred twenty dollars per day, the Commission's share of
gross profits for the ensuing quarter shall be forty-six percent;
if the amount is greater than one hundred twenty dollars per day
but not greater than one hundred forty dollars per day, the
Commission's share of gross profits for the ensuing quarter shall
be fifty-one percent; if the amount is greater than one hundred
forty dollars per day, the Commission's share of gross profits for
the ensuing quarter shall be fifty-five percent. This amount shall
be known as net terminal income.
(b) Net terminal income shall be distributed by the Commission
as follows:
(1) (A) Beginning the first day of July, two thousand two, a
county and the incorporated municipalities within that county shall
receive two percent of the net terminal income generated by limited
video lottery terminals located within the county;
(B) From this two percent of net terminal income, each
municipality shall receive a share that bears the same proportion
to the total two percent of net terminal income as the population of the municipality bears to the total population of the county as
determined by the most recent decennial United States census of
population, and the county shall receive the remaining portion of
the two percent of net terminal income; and
(2) (A) Beginning the first day of July, two thousand five, a
county and the incorporated municipalities within that county shall
receive two and one-half percent of the net terminal income
generated by limited video lottery terminals located within the
county;
(B) From this two and one-half percent of net terminal income,
each municipality shall receive a share that bears the same
proportion to the total two and one-half percent of net terminal
income as the population of the municipality bears to the total
population of the county as determined by the most recent decennial
United States census of population, and the county shall receive
the remaining portion of the two and one-half percent of net
terminal income; and
(2) (3) Any remaining funds shall be deposited into the State
Excess Lottery Revenue Fund established in section eighteen-a,
article twenty-two of this chapter.
(c) The licensed operators and limited video lottery retailers
shall receive the balance of gross terminal income remaining after
deduction of the state's share as calculated pursuant to this
section.
NOTE: The purpose of this bill is to increase the state's
share of gross profits from video lottery terminals. The bill also
increases the share of net terminal income distributed to counties
and incorporated municipalities.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.