COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 4013
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Originating in the Committee on Finance;
reported September 12, 2005.]
____________
A BILL to amend and reenact §19-23-9, §19-23-13b and §19-23-13c of
the Code of West Virginia, 1931, as amended; and to amend and
reenact §29-22A-10b of said code, all relating to amending
certain provisions of the code involving horse and dog racing
and distribution of certain proceeds; providing special funds,
to be established by the Racing Commission, to be used for the
payment of breeders' awards, restrictive races and stakes
purses; deleting obsolete provisions; deleting the stated
objective for the Fund to aid in the rejuvenation and
development of horse tracks in the state for capital
improvements and other purposes; providing that the Commission
establish funds and accounts for each association and licensee
rather than holding funds in deposit in one fund; deleting
current provisions concerning the distribution of balances remaining in breeders, raisers, sire owners and purse
supplement funds; clarifying the meaning of the phrase
"sufficient horses" for purposes of pari-mutuel thoroughbred
horse tracks' provision of restricted races; providing that
the requirement increasing certain purses in restricted races
is only applicable to thoroughbred racetracks that have
participated in the West Virginia Thoroughbred Development
Fund for more than four consecutive years; providing the
Racing Commission may transfer funds back to the general purse
fund if less than seventy-five percent of the restricted races
fail to receive enough entries; deleting the provision that
prohibits associations and licensees who qualify for alternate
tax provisions contained in subsection (b), section ten,
article twenty-three, chapter nineteen of this code from
eligibility for treatment under the provisions of section
thirteen-b of said article; providing that on the first day of
January, two thousand six, licensed racing associations must
have a West Virginia Thoroughbred Racing Breeders' Program;
clarifying disbursement of funds for the benefit of the West
Virginia Breeders' Classic; requiring Racing Commission to
conduct a study of the adequacy of funding of certain
thoroughbred development funds and requiring a report thereon
to the Legislature; allowing for different uses of
thoroughbred development funds by thoroughbred racing tracks
based upon differences in circumstance; deleting provisions of
the Racetrack Video Lottery Act exempting certain licensees from paying into the thoroughbred and greyhound breeders'
funds; increasing maximum amount from the general purse fund
for purposes of restricted races for the thoroughbred
racetrack which participated in the Thoroughbred Development
Fund for at least four consecutive years prior to the thirty-
first day of December, one thousand nine hundred ninety-two;
and making technical corrections and providing reversion of
racetrack video lottery excess net terminal income diverted
from the racetrack purse funds to Workers' Compensation Debt
Reduction Fund pursuant to Enrolled Senate Bill No. 1004 which
took effect the twenty-ninth day of January, two thousand
five, to revert to racetrack purse after a total amount of
eleven million dollars of net terminal income and excess net
terminal income has been diverted each fiscal year from the
purse funds to the workers' compensation debt.
Be it enacted by the Legislature of West Virginia:
That §19-23-9, §19-23-13b and §19-23-13c of the Code of West
Virginia, 1931, as amended, be amended and reenacted; and that §29-
22A-10b of said code be amended and reenacted, all to read as
follows:
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-9. Pari-mutuel system of wagering authorized; licensee
authorized to deduct commissions from pari-mutuel
pools; retention of breakage; auditing; minors.
(a) The pari-mutuel system of wagering upon the results of any horse or dog race at any horse or dog race meeting conducted or
held by any licensee is hereby authorized, if and only if, such
pari-mutuel wagering is conducted by the licensee within the
confines of the licensee's horse racetrack or dog racetrack, and
the provisions of section one, article ten, chapter sixty-one of
this code, relating to gaming shall not apply to the pari-mutuel
system of wagering in manner and form as provided
for in this
article at any horse or dog race meeting within this state where
horse or dog racing
shall be is permitted for any purse by any
licensee. A licensee shall permit or conduct only the pari-mutuel
system of wagering within the confines of the licensee's racetrack
at which any horse or dog race meeting is conducted or held.
(b) A licensee is hereby expressly authorized to deduct a
commission from the pari-mutuel pools, as follows:
(1) The commission deducted by any licensee from the
pari-mutuel pools on thoroughbred horse racing, except from
thoroughbred horse racing pari-mutuel pools involving what is known
as multiple betting in which the winning pari-mutuel ticket or
tickets are determined by a combination of two or more winning
horses, shall not exceed seventeen and one-fourth percent of the
total of the pari-mutuel pools for the day. Out of the commission,
as is mentioned in this subdivision, the licensee: (i) Shall pay
the pari-mutuel pools tax provided
for in subsection (b), section
ten of this article; (ii) shall make a deposit into a special fund
to be established by the licensee and to be used for the payment of
regular purses offered for thoroughbred racing by the licensee, which deposits out of pari-mutuel pools for each day during the
months of January, February, March, October, November and December
shall be seven and three hundred seventy-five one-thousandths
percent of the pari-mutuel pools and which, out of pari-mutuel
pools for each day during all other months, shall be six and eight
hundred seventy-five one-thousandths percent of the pari-mutuel
pools, which shall take effect beginning fiscal year one thousand
nine hundred ninety;
(iv) (iii) shall pay one tenth of one percent
of the pari-mutuel pools into the general fund of the county
commission of the county in which the racetrack is located, except
if within a municipality, then to the Municipal General Fund
. The
remainder of the commission shall be retained by the licensee
(iii) and (iv) Any licensee which has participated in the West
Virginia Thoroughbred Development Fund for a period of more than
four consecutive calendar years prior to the thirty-first day of
December, nineteen hundred ninety-two shall after allowance for the
exclusion given by subsection (b), section ten of this article,
make a deposit into a special fund to be established by the racing
commission and to be used for the payment of breeders, awards and
capital improvements breeders awards, restrictive races and stakes
purses as authorized by section thirteen-b of this article, which
deposits out of pari-mutuel pools shall, from the effective date of
this section, and for fiscal year one thousand nine hundred
eighty-five, be four-tenths percent; for fiscal year one thousand
nine hundred eighty-six, be seven-tenths percent; for fiscal year
one thousand nine hundred eighty-seven, be one percent; for fiscal year one thousand nine hundred eighty-eight, be one and one-half
percent; and for fiscal year one thousand nine hundred eighty-nine,
and each year thereafter, be two percent of the pools. The
remainder of the commission shall be retained by the licensee.
Each licensee that permits or conducts pari-mutuel wagering at
the licensee's thoroughbred horse racetrack shall annually pay five
hundred thousand dollars from the special fund required by this
section to be established by the licensee for the payment of
regular purses offered for thoroughbred racing by the licensee into
a special fund established by the Racing Commission for transfer to
a pension plan established by the Racing Commission for all back
stretch personnel, including, but not limited to, exercise riders,
trainers, grooms and stable forepersons licensed by the Racing
Commission to participate in horse racing in this state and their
dependents.
Each thoroughbred racetrack licensee is authorized to enter
into an agreement with its local Horsemen's Benevolent and
Protective Association under which an agreed upon percentage of up
to two percent of purses actually paid during the preceding month
may be paid to the local Horsemen's Benevolent and Protective
Association from the special fund required by this section for
their respective medical trusts for backstretch personnel and
administrative fees.
The commission deducted by any licensee from the pari-mutuel
pools on thoroughbred horse racing involving what is known as
multiple betting in which the winning pari-mutuel ticket or tickets are determined by a combination of two winning horses shall not
exceed nineteen percent and by a combination of three or more
winning horses shall not exceed twenty-five percent of the total of
such pari-mutuel pools for the day. Out of the commission, as is
mentioned in this paragraph, the licensee: (i) Shall pay the
pari-mutuel pools tax provided for in subsection (b), section ten
of this article; (ii) shall make a deposit into a special fund to
be established by the licensee and to be used for the payment of
regular purses offered for thoroughbred racing by the licensee,
which deposits out of pari-mutuel pools for each day during the
months of January, February, March, October, November and December,
for pools involving a combination of two winning horses shall be
eight and twenty-five one-hundredths percent and out of pari-mutuel
pools for each day during all other months shall be seven and
seventy-five one-hundredths percent of the pari-mutuel pools, and
involving a combination of three or more winning horses for the
months of January, February, March, October, November and December
the deposits out of the fund shall be eleven and twenty-five
one-hundredths percent of the pari-mutuel pools, and which, out of
pari-mutuel pools for each day during all other months, shall be
ten and seventy-five one-hundredths percent of the pari-mutuel
pools; and (iv) (iii) shall pay one tenth of one percent of the
pari-mutuel pools into the general fund of the county commission of
the county in which the racetrack is located, except if within a
municipality, then to the Municipal General Fund. The remainder of
the commission shall be retained by the licensee; (iii) and (iv) any licensee which has participated in the West Virginia
Thoroughbred Development Fund for a period of more than four
consecutive calendar years prior to the thirty-first day of
December, nineteen hundred ninety-two shall after allowance for the
exclusion given by subsection (b), section ten of this article,
make a deposit into a special fund to be established by the racing
commission and to be used for the payment of breeders' awards and
capital improvements as authorized by section thirteen-b of this
article, which deposits out of breeder awards, for restrictive
races and stakes purses which deposits out of pari-mutuel pools
shall, from the effective date of this section, and for fiscal year
one thousand nine hundred eighty-five, be four-tenths percent; for
fiscal year one thousand nine hundred eighty-six, be seven-tenths
percent; for fiscal year one thousand nine hundred eighty-seven, be
one percent; for fiscal year one thousand nine hundred
eighty-eight, be one and one-half percent; and for fiscal year one
thousand nine hundred eighty-nine, and each year thereafter, be two
percent of the pools. The remainder of the commission shall be
retained by the licensee.
The commission deducted by the licensee under this subdivision
may be reduced only by mutual agreement between the licensee and a
majority of the trainers and horse owners licensed by subsection
(a), section two of this article or their designated
representative. The reduction in licensee commissions may be for
a particular race, racing day or days or for a horse race meeting.
Fifty percent of the reduction shall be retained by the licensee from the amounts required to be paid into the special fund
established by the licensee under the provisions of this
subdivision. The Racing Commission shall promulgate any reasonable
rules that are necessary to implement the foregoing provisions.
(2) The commission deducted by any licensee from the
pari-mutuel pools on harness racing shall not exceed seventeen and
one-half percent of the total of the pari-mutuel pools for the day.
Out of the commission the licensee shall pay the pari-mutuel pools
tax provided for in subsection (c), section ten of this article and
shall pay one tenth of one percent into the general fund of the
county commission of the county in which the racetrack is located,
except if within a municipality, then to the Municipal General
Fund. The remainder of the commission shall be retained by the
licensee.
(3) The commission deducted by any licensee from the
pari-mutuel pools on dog racing, except from dog racing pari-mutuel
pools involving what is known as multiple betting in which the
winning pari-mutuel ticket or tickets are determined by a
combination of two or more winning dogs, shall not exceed sixteen
and thirty one-hundredths percent of the total of all pari-mutuel
pools for the day. The commission deducted by any licensee from
the pari-mutuel pools on dog racing involving what is known as
multiple betting in which the winning pari-mutuel ticket or tickets
are determined by a combination of two winning dogs shall not
exceed nineteen percent, by a combination of three winning dogs
shall not exceed twenty percent, and by a combination of four or more winning dogs shall not exceed twenty-one percent of the total
of such pari-mutuel pools for the day. The foregoing commissions
are in effect for the fiscal years one thousand nine hundred ninety
and one thousand nine hundred ninety-one. Thereafter, the
commission shall be at the percentages in effect prior to the
effective date of this article unless the Legislature, after
review, determines otherwise. Out of the commissions, the licensee
shall pay the pari-mutuel pools tax provided for in subsection (d),
section ten of this article and one tenth of one percent of such
pari-mutuel pools into the general fund of the county commission of
the county in which the racetrack is located. In addition, out of
the commissions, if the racetrack is located within a municipality,
then the licensee shall also pay three tenths of one percent of the
pari-mutuel pools into the general fund of the municipality
Municipal General Fund; or, if the racetrack is located outside of
a municipality, then the licensee shall also pay three tenths of
one percent of the pari-mutuel pools into the State Road Fund for
use by the Division of Highways in accordance with the provisions
of this subdivision. The remainder of the commission shall be
retained by the licensee.
For the purposes of this section, "municipality" means and
includes any Class I, Class II and Class III city and any Class IV
town or village incorporated as a municipal corporation under the
laws of this state prior to the first day of January, one thousand
nine hundred eighty-seven.
Each dog racing licensee, when required by the provisions of this subdivision to pay a percentage of its commissions to the
State Road Fund for use by the Division of Highways, shall transmit
the required funds, in such manner and at such times as the Racing
Commission shall by procedural rule direct, to the State Treasurer
for deposit in the State Treasury to the credit of the Division of
Highways State Road Fund. All funds collected and received in the
State Road Fund pursuant to the provisions of this subdivision
shall be used by the Division of Highways in accordance with the
provisions of article seventeen-a, chapter seventeen of this code
for the acquisition of right-of-way for, the construction of, the
reconstruction of and the improvement or repair of any interstate
or other highway, secondary road, bridge and toll road in the
state. If on the first day of July, one thousand nine hundred
eighty-nine, any area encompassing a dog racetrack has incorporated
as a Class I, Class II or Class III city or as a Class IV town or
village, whereas such city, town or village was not incorporated as
such on the first day of January, one thousand nine hundred
eighty-seven, then on and after the first day of July, one thousand
nine hundred eighty-nine, any balances in the State Road Fund
existing as a result of payments made under the provisions of this
subdivision may be used by the State Road Fund for any purpose for
which other moneys in the fund may lawfully be used, and in lieu of
further payments to the State Road Fund, the licensee of a
racetrack which is located in the municipality shall thereafter pay
three tenths of one percent of the pari-mutuel pools into the
general fund of the municipality. If, no incorporation occurs before the first day of July, one thousand nine hundred
eighty-nine, then payments to the State Road Fund shall thereafter
continue as provided for under the provisions of this subdivision.
A dog racing licensee, before deducting the commissions
authorized by this subdivision, shall give written notification to
the Racing Commission not less than thirty days prior to any change
in the percentage rates for the commissions. The Racing Commission
shall prescribe blank forms for filing the notification. The
notification shall disclose the following: (A) The revised
commissions to be deducted from the pari-mutuel pools each day on
win, place and show betting and on different forms of multiple
bettings; (B) the dates to be included in the revised betting; and
(C) such other information as may be required by the Racing
Commission.
The licensee shall establish a special fund to be used only
for capital improvements or long-term debt amortization or both:
Provided, That any licensee, heretofore licensed for a period of
eight years prior to the effective date of the amendment made to
this section during the regular session of the Legislature held in
the year one thousand nine hundred eighty-seven, shall establish
the special fund to be used only for capital improvements or
physical plant maintenance, or both, at the licensee's licensed
facility or at the licensee's commonly owned racing facility
located within this state. Deposits made into the funds shall be
in an amount equal to twenty-five percent of the increased rate
total over and above the applicable rate in effect as of the first day of January, one thousand nine hundred eighty-seven, of the
pari-mutuel pools for the day. Any amount deposited into the funds
must be expended or liability therefor incurred within a period of
two years from the date of deposit. Any funds not expended shall
be transferred immediately into the State General Fund after
expiration of the two-year period.
The licensee shall make a deposit into a special fund
established by the licensee and used for payment of regular purses
offered for dog racing, which deposits out of the licensee's
commissions for each day shall be three and seventy-five
one-hundredths percent of the pari-mutuel pools.
The licensee shall further establish a special fund to be used
exclusively for marketing and promotion programs; the funds shall
be in an amount equal to five percent over and above the applicable
rates in effect as of the first day of January, one thousand nine
hundred eighty-seven of the total pari-mutuel pools for the day.
The Racing Commission shall prepare and transmit annually to
the Governor and the Legislature a report of the activities of the
Racing Commission under this subdivision. The report shall include
a statement of: The amount of commissions retained by licensees;
the amount of taxes paid to the state; the amounts paid to
municipalities, counties and the Division of Highways Dog Racing
Fund; the amounts deposited by licensees into special funds for
capital improvements or long-term debt amortization and a certified
statement of the financial condition of any licensee depositing
into the fund; the amounts paid by licensees into special funds and used for regular purses offered for dog racing; the amounts paid by
licensees into special funds and used for marketing and promotion
programs; and such other information as the racing commission may
consider appropriate for review.
(c) In addition to any commission, a licensee of horse race or
dog race meetings shall also be entitled to retain the legitimate
breakage, which shall be made and calculated to the dime, and from
the breakage, the licensee of a horse race meeting (excluding dog
race meetings), shall deposit daily fifty percent of the total of
the breakage retained by the licensee into the special fund created
pursuant to the provisions of subdivision (1), subsection (b) of
this section for the payment of regular purses.
(d) The director of audit, and any other auditors employed by
the Racing Commission who are also certified public accountants or
experienced public accountants, shall have free access to the space
or enclosure where the pari-mutuel system of wagering is conducted
or calculated at any horse or dog race meeting for the purpose of
ascertaining whether or not the licensee is deducting and retaining
only a commission as provided in this section and is otherwise
complying with the provisions of this section. They shall also,
for the same purposes only, have full and free access to all
records and papers pertaining to the pari-mutuel system of wagering
and shall report to the Racing Commission in writing, under oath,
whether or not the licensee has deducted and retained any
commission in excess of that permitted under the provisions of this
section or has otherwise failed to comply with the provisions of this section.
(e) No licensee shall permit or allow any individual under the
age of eighteen years to wager at any horse or dog racetrack,
knowing or having reason to believe that the individual is under
the age of eighteen years.
(f) Notwithstanding the foregoing provisions of subdivision
(1), subsection (b) of this section, to the contrary, a
thoroughbred licensee qualifying for and paying the alternate
reduced tax on pari-mutuel pools provided in section ten of this
article shall distribute the commission authorized to be deducted
by subdivision (1), subsection (b) of this section as follows: (i)
The licensee shall pay the alternate reduced tax provided in
section ten of this article; (ii) the licensee shall pay one tenth
of one percent of the pari-mutuel pools into the general fund of
the county commission of the county in which the racetrack is
located, except if within a municipality, then to the Municipal
General Fund; (iii) the licensee shall pay one half of the
remainder of the commission into the special fund established by
the licensee and to be used for the payment of regular purses
offered for thoroughbred racing by the licensee; and (iv) the
licensee shall retain the amount remaining after making the
payments required in this subsection.
(g) Each kennel which provides or races dogs owned or leased
by others shall furnish to the Commission a surety bond in an
amount to be determined by the Commission to secure the payment to
the owners or lessees of the dogs the portion of any purse owed to the owner or lessee.
§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 the first day of October, two thousand
five, 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 the thirty-first
day of December, one thousand nine hundred ninety-two from the
eighth day of July, two thousand five until the effective date of
the amendment to this section passed during the Fourth
Extraordinary Session of the 77th 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 the thirty-first day of December, on
thousand nine hundred ninety-two, shall be transferred into that
licensee's purse fund until the first day of April, two thousand
six. Notice of the amount, date and place of the deposit deposits
shall be given by the Racing Commission, in writing, to the State
Treasurer. The purpose of the fund 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: A further objective of the fund is
to aid in the rejuvenation and development of the present horse tracks now operating in West Virginia for capital improvements,
operations or increased purses Provided, 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 three hundred thousand dollars of the each fund shall be
available for distribution for stakes races at a racetrack which
has participated in the West Virginia Thoroughbred Development Fund
for a period of more than four consecutive calender years prior to
the thirty-first day of December, nineteen hundred ninety-two. 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 the thirty-first day of July, two thousand four,
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 remaining races may be chosen by the committee
set forth in subsection (g) (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 any 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 (1) may only
be paid on the first one hundred thousand dollars of any purse, and
not on any amounts in excess of the first one hundred thousand
dollars.
(2) The owner of a 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
(2) shall only be paid on the first one hundred thousand dollars of
any purse, and not on any amounts in excess of the first one hundred thousand dollars.
(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 one hundred thousand dollars of any
purse, and not on any amounts in excess of the first one hundred
thousand dollars.
(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 (g) (f) of this section.
Any amount not so used shall revert back 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) The remainder, if any, of the thoroughbred development
fund that is not available for distribution in the program provided
for in subsection (e) of this section in any one year is reserved
for regular purses, marketing expenses and for capital improvements
in the amounts and under the conditions provided in this subsection
(f).
(1) Fifty percent of the remainder shall be reserved for
payments into the regular purse fund established in subsection (b),
section nine of this article.
(2) Up to five hundred thousand dollars per year shall be
available for:
(A) Capital improvements at the eligible licensed horse racing
tracks in the state; and
(B) Marketing and advertising programs above and beyond two
hundred fifty thousand dollars for the eligible licensed horse
racing tracks in the state: Provided, That moneys shall be
expended for capital improvements or marketing and advertising
purposes as described in this subsection only in accordance with a
plan filed with and receiving the prior approval of the racing
commission, and on a basis of fifty percent participation by the
licensee and fifty percent participation by moneys from the fund,
in the total cost of approved projects: Provided, however, That
funds approved for one track may not be used at another track
unless the first track ceases to operate or is viewed by the commission as unworthy of additional investment due to financial or
ethical reasons.
(g) (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. 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;
(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 a majority of the West Virginia
Thoroughbred Breeders Association.
(3) The purses for the restricted races established in this
subsection shall be twenty percent larger than the purses for
similar type races at each track or equal to or of greater value
than a comparable race: Provided, That sufficient funds are
available: Provided, however, That the twenty percent requirement
is applicable only to a thoroughbred racetrack which has
participated in the West Virginia Thoroughbred Development Fund for
a period of more than four consecutive calender years prior to the
thirty-first day of December, one thousand nine hundred ninety-two.
(4) Restricted races shall be funded by each racing
association from:
(A) Moneys placed in the general purse fund up to a maximum of
three hundred fifty thousand dollars per year: Provided, That a
thoroughbred horse racetrack which has participated in the West
Virginia Thoroughbred Development fund for a period of more than
four consecutive years prior to the thirty-first day of December,
one thousand nine hundred ninety-two may fund restricted races in
an amount not to exceed one million five hundred thousand dollars
from the general purse fund.
(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."
(5) The racing schedules, purse amounts and types of races are
subject to the approval of the West Virginia Racing Commission.
(6) 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 two hundred fifty thousand dollars in the fund.
(h) (g) As used in this section, "West Virginia bred-foal"
means a horse that was born in the State of West Virginia.
(i) (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 by a West
Virginia stallion following the birth of that West Virginia
bred-foal.
(j) No association or licensee qualifying for the alternate
tax provision of subsection (b), section ten of this article is
eligible for participation in any of the provisions of this
section: Provided, That the provisions of this subsection do not
apply to a thoroughbred race track at which the licensee has
participated in the West Virginia thoroughbred development fund for
a period of more than four consecutive calendar years prior to the
thirty-first day of December, one thousand nine hundred ninety-two.
(k) (i) From the first day of July, two thousand one, West
Virginia accredited thoroughbred horses have preference for entry
in all accredited races at a thoroughbred race track at which the
licensee has participated participates in the West Virginia
Thoroughbred Development Fund. for a period of more than four
consecutive calendar years prior to the thirty-first day of
December, one thousand nine hundred ninety-two
(j) Beginning the first day of July, two thousand six, 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 two thousand
nine, 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 the thirty-first day of December, nineteen hundred ninety-
two, and shall report its findings and recommendations to the Joint
Committee on Government and Finance on or before the first day of
December, two thousand nine.
§19-23-13c. Expenditure of racetrack video lottery distribution.
(a) Funds received by the Racing Commission pursuant to
subdivision (6), subsection (c), section ten, article twenty-two-a,
chapter twenty-nine of this code, and subdivision (5), subsection
(a), section ten-b, article twenty-two-a, chapter twenty-nine of
this code, after the effective date of this section together with
the balance in the bank account previously established by the
Commission to receive those funds shall be deposited in a banking
institution of its choice in a special account to be known as "West
Virginia Racing Commission Racetrack Video Lottery Account."
Notice of the amount, date and place of each deposit shall be given
by the Racing Commission, in writing, to the State Treasurer.
(b) Funds in this account shall be allocated and expended as
follows:
(1) For each fiscal year, the first eight hundred thousand
dollars deposited in the separate account plus the amount then
remaining of the June thirtieth, one thousand nine hundred
ninety-seven, balance in the separate account previously
established for the West Virginia breeders classic under section
thirteen of this article, shall be used by the Commission for
promotional activities, advertising, administrative costs and
purses for the West Virginia Thoroughbred Breeders Classic, which
shall give equal consideration to all horses qualifying under the
West Virginia breeders program for each stake race, based solely on
the horses' sex, age and earnings.
(2) For each fiscal year, the next two hundred thousand
dollars deposited into the separate account shall be used by the
Commission for promotional activities and purses for open stake
races for a race event to be known as the West Virginia Derby to be
held at a thoroughbred racetrack which does not participate in the
West Virginia thoroughbred development fund Breeders Classic.
(3) For each fiscal year, once the amounts provided in
subdivisions (1) and (2) of this subsection (b) have been deposited
into separate bank accounts for use in connection with the West
Virginia Thoroughbred Breeders Classics and the West Virginia
Derby, the Commission shall return to each racetrack all additional
amounts deposited which originate during that fiscal year from each
respective racetrack pursuant to subdivision (6), subsection (c), section ten, article twenty-two-a, chapter twenty-nine of this
code, which returned excess funds shall be used as follows:
(A) For each dog racetrack, one half of the returned excess
funds shall be used for capital improvements at the racetrack and
one half of the returned excess funds shall be deposited into the
West Virginia Racing Commission Special Account - West Virginia
Greyhound Breeding Development Fund.
(B) At those thoroughbred racetracks that have participated in
the West Virginia Thoroughbred Development Fund for a period of
more than four consecutive calendar years prior to the thirty-first
day of December, one thousand nine hundred ninety-two, one half of
the returned excess funds shall be used for capital improvements at
the licensee's racetrack and one half of the returned excess funds
shall be equally divided between the West Virginia Thoroughbred
Breeders Classic and the West Virginia Thoroughbred Development
Fund.
(C) At those thoroughbred horse racetracks which do not
participate in the West Virginia thoroughbred development fund
Breeders Classic, one half of the returned excess funds shall be
used for capital improvements at the licensee's racetrack and one
half of the returned excess funds shall be used for purses for the
open stakes race event known as the West Virginia Derby.
(c) All expenditures that are funded under this section must
be approved in writing by the West Virginia Racing Commission
before the funds are expended for any of the purposes authorized by
this section.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-10b. Distribution of excess net terminal income.
(a) For all years beginning on or after the first day of July,
two thousand one, any amount of net terminal income generated
annually by a licensed racetrack in excess of the amount of net
terminal income generated by that licensed racetrack during the
fiscal year ending on the thirtieth day of June, two thousand one,
shall be divided as follows:
(1) The commission shall receive forty-one percent of net
terminal income, which the commission shall deposit in the state
excess lottery revenue fund created in section eighteen-a, article
twenty-two of this chapter;
(2) Until the first day of July, two thousand five, eight
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 the first day of July, two thousand five, the rate shall be
four 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) Any amount by which the total amount under this section
and subdivision (3), subsection (c), section ten of this article is
in excess of the two percent received during fiscal year one thousand nine hundred ninety-nine by a county in which a racetrack
is located that has participated in the West Virginia thoroughbred
development fund since on or before the first day of January, one
thousand nine hundred ninety-nine, 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, the 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) Any amount by which the total amount under this section
and subdivision (3), subsection (c), section ten of this article is
in excess of the two percent received during fiscal year one
thousand nine hundred ninety-nine 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 the first day of
January, one thousand nine hundred ninety-nine, 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 county other than a county described
in paragraph (A) or (B) of this proviso;
(4) One half of 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, article twenty-three, chapter nineteen
of this code shall receive an equal share of a total of not less
than one and one-half percent of the net terminal income
;
Provided, That for any racetrack which does not have a breeder's
program supported by the thoroughbred development fund or the
greyhound breeding development fund, the one and one-half percent
provided for in this subdivision 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 subdivision
(2) of this subsection and article twenty-three, chapter nineteen
of this code.
(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-two percent of net terminal
income;
(8) 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 each fiscal
year beginning after the thirtieth day of June, two thousand four,
this three percent of net terminal income shall be distributed
pursuant to the provisions of paragraph (B), subdivision (8),
subsection (c), section ten of this article;
(9)
(A) On and after the first day of July, two thousand five,
four 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 together with the total allocation transferred by the
operation of subdivision (9), subsection (c), section ten of this
article totals eleven million dollars, all subsequent distributions
under this subdivision (9)
during that fiscal year 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;
(B) The deposit of the four 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, which 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 in 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 is 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 in its entirety; and
(10) (A) One percent of the 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; and
(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, for each fiscal year beginning after
the thirtieth day of June, two thousand four, this one percent of
net terminal income shall be distributed pursuant to the provisions
of subparagraph (ii), paragraph (B), subdivision (9), subsection
(c), section ten of this article.
(b) The commission may establish orderly and effective
procedures for the collection and distribution of funds under this
section in accordance with the provisions of this section and
section ten of this article.
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