COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 498
(By Senator Unger)
____________
[Originating in the Committee on Agriculture;
reported February 26, 2002.]
____________
A BILL to amend and reenact section fourteen, article eighteen,
chapter seven
of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to amend and reenact section
eighty-one, article twenty-four, chapter eight
of said code;
to further amend said article by adding thereto a new section,
designated section eighty-five; to amend article one, chapter
nineteen of said code by adding thereto a new section,
designated section four-d;
and to amend and reenact section
ten, article twenty-two-a, chapter twenty-nine of said code,
all relating to the funding of farmland preservation programs;
adding a county farmland preservation fund as a permissible
expenditure of funds from hotel occupancy taxes; allowing a
county to impose an additional tax on the privilege of transferring title to real estate for funding of farmland
preservation programs; creating a farmland preservation fund
in the department of agriculture; and funding the farmland
preservation fund in the department of agriculture with a
portion of excess proceeds from moneys remitted for
administration of racetrack video lottery.
Be it enacted by the Legislature of West Virginia:
That section fourteen, article eighteen, chapter seven
of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended be amended and reenacted; that section eighty-one, article
twenty-four, chapter eight
of said code be amended and reenacted;
that said article be further amended by adding thereto a new
section, designated section eighty-five;
that article one, chapter
nineteen of said code be amended by adding thereto a new section,
designated section four-d;
and that section ten, article twenty-
two-a, chapter twenty-nine of said code be amended and reenacted,
all to read as follows:
CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.
ARTICLE 18. HOTEL OCCUPANCY TAX.
§7-18-14. Proceeds of tax; application of proceeds.
(a) Application of proceeds. -- The net proceeds of the tax
collected and remitted to the taxing authority pursuant to this
article shall be deposited into the general revenue fund of such
municipality or county commission and, after appropriation thereof, shall be expended only as provided in subsections (b) and (c) of
this section.
(b) Required expenditures. -- At least fifty percent of the
net revenue receivable during the fiscal year by a county or a
municipality pursuant to this article shall be expended in the
following manner for the promotion of conventions and tourism:
(1) Municipalities. -- If a convention and visitor's bureau is
located within the municipality, county or region, the governing
body of such municipality shall appropriate the percentage required
by this subsection to that bureau. If a convention and visitor's
bureau is not located within such municipality, county or region,
then the percentage appropriation required by this subsection shall
be appropriated as follows:
(i) Any hotel located within such municipality, county or
region may apply to such municipality for an appropriation to such
hotel of a portion of the tax authorized by this article and
collected by such hotel and remitted to such municipality, for uses
directly related to the promotion of tourism and travel, including
advertising, salaries, travel, office expenses, publications and
similar expenses. The portion of such tax allocable to such hotel
shall not exceed seventy-five percent of that portion of such tax
collected and remitted by such hotel which is required to be
expended pursuant to this subsection: Provided, That prior to
appropriating any moneys to such hotel such municipality shall
require the submission of, and give approval to, a budget setting forth the proposed uses of such moneys.
(ii) If there is more than one convention and visitor's bureau
located within a municipality, county or region, the city council
may allocate the tax authorized by this article to one or more of
such bureaus in such portion as the city council in its sole
discretion determines.
(iii) The balance of net revenue required to be expended by
this subsection shall be appropriated to the regional travel
council serving the area in which the municipality is located.
(2) Counties. -- If a convention and visitor's bureau is
located within a county or region, the county commission shall
appropriate the percentage required by this subsection to that
convention and visitor's bureau. If a convention and visitor's
bureau is not located within such county or region, then the
percentage appropriation required by this subsection shall be
appropriated as follows:
(i) Any hotel located within such county or region may apply
to such county for an appropriation to such hotel of a portion of
the tax authorized by this article and collected by such hotel and
remitted to such county, for uses directly related to the promotion
of tourism and travel, including advertising, salaries, travel,
office expenses, publications and similar expenses. The portion of
such tax allocable to such hotel shall not exceed seventy-five
percent of that portion of such tax collected and remitted by such
hotel which is required to be expended pursuant to this subsection: Provided, That prior to appropriating any moneys to such hotel such
county shall require the submission of, and give approval to, a
budget setting forth the proposed uses of such moneys.
(ii) If there is more than one convention and visitor's bureau
located within a county or region, the county commission may
allocate the tax authorized by this article to one or more of such
bureaus in such portion as the county commission in its sole
discretion determines.
(iii) The balance of net revenue required to be expended by
this subsection shall be appropriated to the regional travel
council serving the area in which the county is located.
(3) Legislative finding. -- The Legislature hereby finds that
the support of convention and visitor's bureaus, hotels and
regional travel councils is a public purpose for which funds may be
expended. Local convention and visitor's bureaus, hotels and
regional travel councils receiving funds under this subsection may
expend such funds for the payment of administrative expenses and
for the direct or indirect promotion of conventions and tourism and
for any other uses and purposes authorized by subdivisions (1) and
(2) of this subsection.
(c) Permissible expenditures. -- After making the
appropriation required by subsection (b) of this section, the
remaining portion of the net revenues receivable during the fiscal
year by such county or municipality, pursuant to this article, may
be expended for one or more of the purposes set forth in this subsection, but for no other purpose. The purposes for which
expenditures may be made pursuant to this subsection are as
follows:
(1) The planning, construction, reconstruction, establishment,
acquisition, improvement, renovation, extension, enlargement,
equipment, maintenance, repair and operation of publicly owned
convention facilities, including, but not limited to, arenas,
auditoriums, civic centers and convention centers;
(2) The payment of principal or interest or both on revenue
bonds issued to finance such convention facilities;
(3) The promotion of conventions;
(4) The construction, operation or maintenance of public
parks, tourist information centers and recreation facilities
(including land acquisition);
(5) The promotion of the arts;
(6) Historic sites;
(7) Beautification projects; or
(8) Medical care, in an amount not exceeding one hundred
thousand dollars, in any county where: (i) There is an urgent
necessity to preserve the delivery of acute medical care services;
(ii) there is an increase in need for acute medical care services
directly related to tourism; (iii) recurrent flooding in the county
significantly disrupts, on a periodic basis, the delivery of acute
medical care services; (iv) there is an inadequate economic base
within the county from any source other than tourism to preserve the delivery of acute medical care services; (v) there is an
inadequate economic base directly related to low population in the
county, specifically, a population of less than ten thousand
persons according to the census of the year one thousand nine
hundred ninety; and (vi) there is one and only one hospital within
the county and the county commission makes specific findings, by
resolution, that all of the foregoing conditions within the county
exist.
(9) Farmland preservation as enacted beginning with section
seventy-two, article twenty-four, chapter eight of this code.
(d) Definitions. -- For purposes of this section, the
following terms are defined:
(1) Convention and visitor's bureau and visitor's and
convention bureau. -- "Convention and visitor's bureau" and
"visitor's and convention bureau" are interchangeable and either
shall mean a nonstock, nonprofit corporation with a full-time staff
working exclusively to promote tourism and to attract conventions,
conferences and visitors to the municipality, county or region in
which such convention and visitor's bureau or visitor's and
convention bureau is located or engaged in business within.
(2) Convention center. -- "Convention center" means a
convention facility owned by the state, a county, a municipality or
other public entity or instrumentality and shall include all
facilities, including armories, commercial, office, community
service and parking facilities and publicly owned facilities constructed or used for the accommodation and entertainment of
tourist and visitors, constructed in conjunction with the
convention center and forming reasonable appurtenances thereto.
(3) Fiscal year. -- "Fiscal year" means the year beginning the
first day of July and ending the thirtieth day of June of the next
calendar year.
(4) Net proceeds. -- "Net proceeds" means the gross amount of
tax collections less the amount of tax lawfully refunded.
(5) Promotion of the arts. -- "Promotion of the arts" means
activity to promote public appreciation and interest in one or more
of the arts. It includes the promotion of music for all types, the
dramatic arts, dancing, painting and the creative arts through
shows, exhibits, festivals, concerts, musicals and plays.
(6) Recreational facilities. -- "Recreational facilities"
means and includes any public park, parkway, playground, public
recreation center, athletic field, sports arena, stadium, skating
rink or arena, golf course, tennis courts and other park and
recreation facilities, whether of a like or different nature, that
are owned by a county or municipality.
(7) Region. -- "Region" means an area consisting of one or
more counties that have agreed by contract to fund a convention and
visitor's bureau to promote those counties.
(8) Regional travel council. -- "Regional travel council"
means a nonstock, nonprofit corporation, with a full-time staff
working exclusively to promote tourism and to attract conventions, conferences and visitors to the region of this state served by the
regional travel council.
(9) Historic site. -- "Historic site" means any site listed on
the United States national register of historic places, or listed
by a local historical landmarks commission, established under state
law, when such sites are owned by a city, a county or a nonprofit
historical association and are open from time to time to
accommodate visitors.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 24. PLANNING AND ZONING.
§8-24-81. Funding of farmland protection programs.
(a) Creation of fund. -- A county commission may use any funds
not specifically limited to other uses to fund and support a
farmland protection program and, once having created a county
farmland protection board, shall authorize the board to create and
maintain a farmland protection fund and hire staff as it considers
appropriate.
(a) County funds.--
(1) Creation of county funds. -- Once a county creates a
farmland protection board, the county commission shall authorize
the county farmland protection board to create and maintain a
farmland protection fund and hire staff as it considers
appropriate.
(2) Sources. -- A county farmland protection fund is comprised of:
(A) Any moneys not specifically limited to other uses and
dedicated to the fund by a county commission; and
(B) Any moneys collected pursuant to section eighty-five of
this article; and
(C) Any moneys collected pursuant to section fourteen, article
eighteen, chapter seven of this code; and
(D) Any moneys collected pursuant to section four, article
one, chapter nineteen of this code.
(b) State fund.--
(b) (1) Created and continued. -- The West Virginia farmland
protection fund is created for the purposes specified in this
article.
(c) (2) Sources. -- The West Virginia farmland protection fund
is comprised of:
(1) (A) Any money made available to the fund by general or
special fund appropriations;
(2) (B) Any money made available to the fund by grants or
transfers from governmental or private sources;
(3) (C) Any money realized by investments, interest, dividends
or distributions; and
(4) (D) Any money appropriated by the Legislature for the West
Virginia farmland protection fund.
(d) (3) Disbursements. -- The treasurer may not disburse any
money from the fund other than:
(1) (A) For costs associated with the staffing, administration
and technical and legal duties of the authority;
(2) (B) For reasonable expenses incurred by the members of the
board of trustees of the authority in the performance of official
duties; and
(3) (C) For consideration in the purchase of farmland
conservation and preservation easements.
(e) (4) Money remaining at end of fiscal year. -- Any money
remaining in the fund at the end of a fiscal year shall not revert
to the general revenue fund of the state, but shall remain in the
West Virginia farmland protection fund to be used for the purposes
specified in this chapter.
(f) (5) Budget. -- The estimated budget of the authority for
the next fiscal year shall be included with the budget of the West
Virginia department of agriculture.
(g) (6) Audit. -- The fund shall be audited annually.
§8-24-85. Tax on privilege of transferring real property.
(a) Notwithstanding the provisions of section two, article
twenty-two, chapter eleven of this code, and effective the first
day of January, two thousand three, and thereafter, in addition to
the tax imposed pursuant to article twenty-two, chapter eleven of
this code, any county that has adopted and implemented a farmland
protection program may impose an additional county excise tax for
the privilege of transferring title to real estate, as defined in
section one, article twenty-two, chapter eleven of this code, payable at the time of delivery, acceptance or presenting for
recording of the document.
(b) The tax imposed pursuant to this section is to be
administered and collected as the tax on the privilege of
transferring title to real estate imposed pursuant to the
provisions of article twenty-two, chapter eleven of this code.
CHAPTER 19. AGRICULTURE.
ARTICLE 1. DEPARTMENT OF AGRICULTURE.
§19-1-4d. Farmland preservation fees fund.
There is hereby created a special revenue account within the
state treasury to be known as "Farmland Preservation Fees Fund".
Expenditures from the fund shall be used exclusively by the
commissioner of agriculture for the purpose of funding farmland
preservation boards in
any county which has adopted and implemented
a farmland protection program
pursuant to the
farmland preservation
act as enacted beginning with section seventy-two, article twenty-
four, chapter eight of this code.
Moneys paid into the account
shall be from all moneys collected pursuant to section ten(b),
article twenty-two-a, chapter twenty-nine of this code.
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 all fiscal years beginning on or after the
first day of July, two thousand one, 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
the thirtieth day of June, two thousand one, 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 the thirtieth day of June, two thousand one, shall be
divided equally and deposited equally into the fund funds
established in section four-d, section one, chapter nineteen of
this code and 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 the first
day of July, two thousand one, any amount of net terminal income
received in excess of the amount of net terminal income received
during the fiscal year ending on the thirtieth day of June, two
thousand one, 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) 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;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income: Provided,
That:
(A) Beginning the first day of July, one thousand nine hundred
ninety-nine, and thereafter, any amount 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) Beginning the first day of July, one thousand nine hundred
ninety-nine, and thereafter, any amount 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 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: 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-seven 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; and
(9) 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 of this chapter: 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 twenty thousand dollars 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, one
hundred thousand dollars 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 of this chapter 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 five
hundred thousand dollars 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:
Provided further, That 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 of said
article and cultural facilities and capitol resources matching
grant program fund created under section three, article one of this
chapter.
(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.
NOTE: The purpose of this bill is to the allow options to the counties which have created farmland preservation boards in the
funding of those boards. The bill adds a county farmland
preservation fund as a permissible expenditure of funds from hotel
occupancy taxes. The bill allows a county to impose an additional
tax on the privilege of transferring title to real estate for
funding of farmland preservation programs. The bill creates a
farmland preservation fund in the department of agriculture; and
provides for funding the farmland preservation fund in the
department
of agriculture with a portion of excess proceeds from
moneys remitted for administration of racetrack video lottery.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§8-24-85 and §19-1-4(d) are new; therefore, strike-throughs
and underscoring have been omitted.
__________
FINANCE COMMITTEE AMENDMENTS
On page ten, section eighty-one, line one, by striking out the
word "and";
On page ten, section eighty-one, line three, by striking out
the word "and";
On page eleven, section eighty-five, line twenty-two, after
the "estate," by inserting the words "up to the amount";
And,
On page twelve, section four-d, after line seventeen, by
striking out the remainder of the bill.
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