H. B. 4372
(By Delegates Martin and Argento)
[Introduced February 1, 2008; referred to the
Committee on Government Organization then Finance.]
A BILL to amend and reenact §19-23-10 of the Code of West Virginia,
1931, as amended, relating to authorizing the creation of a
special revenue account in the State Treasury called the "West
Virginia Racing Commission-Special Account-West Virginia
Greyhound Breeding Development Fund."
Be it enacted by the Legislature of West Virginia:
That §19-23-10 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
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 two hundred fifty
dollars. 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 one hundred fifty dollars.
Any racing association conducting dog races shall pay each day upon
which dog races are run a daily license tax of one hundred fifty
dollars. 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 two hundred fifty dollars
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 from the effective date of this section and for fiscal year one thousand nine hundred
eighty-five be calculated at two and six-tenths percent; for fiscal
year one thousand nine hundred eighty-six, be calculated at two and
three-tenths percent; for fiscal year one thousand nine hundred
eighty-seven, be calculated at two percent of the pool; for fiscal
year one thousand nine hundred eighty-eight, be calculated at one
and one-half percent; for fiscal year one thousand nine hundred
eighty-nine, be calculated at one percent of the pool; for fiscal
year one thousand nine hundred ninety, seven tenths of one percent,
and for fiscal year one thousand nine hundred ninety-one and each
fiscal year thereafter 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 from the effective date of this
section and for fiscal year one thousand nine hundred eighty-five,
be calculated at three and six-tenths percent; for fiscal year one
thousand nine hundred eighty-six, be calculated at three and
three-tenths percent; for fiscal year one thousand nine hundred
eighty-seven, be calculated at three percent of the pool; for
fiscal year one thousand nine hundred eighty-eight, be calculated
at two and one-half percent; for fiscal year one thousand nine
hundred eighty-nine, be calculated at two percent of the pool; for
fiscal year one thousand nine hundred ninety, be calculated at one
and seven-tenths percent of the pool; and for fiscal year one
thousand nine hundred ninety-one and each fiscal year thereafter, 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 one
thousand nine hundred ninety-one 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 two hundred eighty thousand dollars 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 three
hundred thousand dollars the daily pari-mutuel pool tax shall be
one thousand dollars plus the otherwise applicable percentage rate
imposed by this subsection of the daily pari-mutuel pool, if any,
in excess of three hundred thousand dollars:
Provided further, That upon the effective date of the reduction of the daily
pari-mutuel pool tax to one thousand dollars from the former two
thousand dollars, the association or licensee shall daily deposit
five hundred dollars 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 the thirty-first day of December, one
thousand nine hundred ninety-two.
(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 one hundred thousand
dollars wagered, or any part thereof; four percent of the next one
hundred fifty thousand dollars; 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 fifty thousand dollars or any
part thereof of the pari-mutuel pools, five percent of the next
fifty thousand dollars of the pari-mutuel pools, six percent of the
next one hundred thousand dollars of the pari-mutuel pools, seven
percent of the next one hundred fifty thousand dollars of the
pari-mutuel pools, and eight percent of all over three hundred
fifty thousand dollars 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 one thousand nine hundred ninety; fifteen
hundredths of one percent in fiscal year one thousand nine hundred ninety-one; two tenths of one percent in fiscal year one thousand
nine hundred ninety-two; one quarter of one percent in fiscal year
one thousand nine hundred ninety-three; and three tenths of one
percent in fiscal year one thousand nine hundred ninety-four 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".
Beginning with the
effective date of this section on the first day of July, two
thousand eight, whichever is earlier and continuing thereafter, the
amounts deducted, and any interest earnings thereon, which funds
were previously deposited in a banking account, are to be placed in
a new special revenue interest bearing account hereby created in
the State Treasury to be known as the "West Virginia Racing
Commission-Special Account-West Virginia Greyhound Breeding
Development Fund", which may be invested in the manner permitted by
the provisions of article six, chapter twelve of this code, with
the interest income a proper credit to the fund. These further
funds shall be available only in accordance with an appropriation
by the Legislature. Any and all funds previously held by the
Racing Commission in any banking institution or institutions of its
choice, pursuant to this section, shall be transferred to the
special revenue account in the State Treasury created herein and called the "West Virginia Racing Commission-Special Account-West
Virginia Greyhound Breeding Development Fund", within thirty days
of the effective date of this section. The purpose of the fund is
to promote better breeding, a training facility 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 be eligible to receive an award or
purse through the fund, the registered greyhound owner of the
accredited West Virginia whelped greyhound must be a bona fide
resident 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 and the West
Virginia registered greyhound owners and breeders association shall
maintain a registry for West Virginia bred greyhounds. The moneys
shall be expended by the Racing Commission for purses for stake
races, supplemental purse awards, administration, promotion and
educational 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 seventy-five thousand dollars for the fiscal year ending
the thirtieth day of June, one thousand nine hundred ninety-four.
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 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
breeder's 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 one million dollars from the balance
in the purse supplemental fund shall be used for the construction
and maintenance of a dog training track and facilities if such be
approved by the West Virginia Racing Commission. The West Virginia
Racing Commission shall be authorized to promulgate rules governing
dog training tracks.
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 fifty thousand dollars per annum, to
be paid in equal quarterly installments of twelve thousand five
hundred dollars 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
the first day of July, one thousand nine hundred ninety-three, and
ending the thirtieth day of June, one thousand nine hundred
ninety-six. 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. 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 the first day of July 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 for review 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 the first day of July, one thousand nine
hundred ninety-three 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 capital improvement
account". The Racing Commission is authorized to expend the moneys deposited in the administration, promotion and educational and
capital improvement 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 one thousand nine hundred
ninety-five 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. The commission shall make an annual report to the
Legislature on the status of the administration, promotion and
education account, including the previous year's expenditures and
projected expenditures for the next year.
The Racing Commission, for the fiscal year one thousand nine
hundred ninety-four only, may expend up to thirty-five thousand
dollars 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.
NOTE: The purpose of this bill is to authorize the creation of
a special revenue account in the State Treasury called the "West
Virginia Racing Commission-Special Account-West Virginia Greyhound
Breeding Development Fund."
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.