H. B. 102
(By Mr. Speaker, (Mr. Thompson))
[By Request of the Executive]
[Introduced May 31, 2009; referred to the
Committee on Finance.]
A BILL to amend and reenact §29-22C-27 of the Code of West
Virginia, 1931, as amended, relating to the allocation of
adjusted gross receipts from pari-mutuel racetracks with West
Virginia Lottery racetrack table games; increasing the share
allocated to certain municipalities and counties after each
pari-mutuel racetrack in the state is licensed to offer West
Virginia Lottery racetrack table games; providing a
corresponding adjustment of funds transferred to the state;
providing for the allocation of funds in growth counties that
have enacted the Local Powers Act; and increasing for two
fiscal years the share allocated to the Lottery Commission for
administration and enforcement upon the occurrence of certain
conditions.
Be it enacted by the Legislature of West Virginia:
That §29-22C-27 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 22C. WEST VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT.
§29-22C-27. West Virginia Lottery Racetrack Table Games Fund;
Community-Based Service Fund; State Debt Reduction
Fund; distribution of funds.
(a)(1)
There is hereby created and established a The special
fund in the State Treasury
to be known as the West Virginia Lottery
Racetrack Table Games Fund
is continued and all tax collected under
this article shall be deposited with the State Treasurer and placed
in the West Virginia Lottery Racetrack Table Games Fund. The fund
shall be an interest-bearing account with all interest or other
return earned on the money of the fund credited to and deposited in
the fund.
(2) Notwithstanding any provision of this article to the
contrary, all racetrack table games license fees received by the
commission pursuant to section eight of this article shall be
deposited into the Community-Based Service Fund which is
hereby
created continued in the State Treasury. Moneys of the fund shall
be expended by the Bureau of Senior Services upon appropriation of
the Legislature solely for the purpose of enabling the aged and
disabled citizens of this state to maintain their residency in the
community-based setting through the provision of home and
community-based services.
(b) From the gross amounts deposited into the Racetrack Table Games Fund pursuant to subsection (a) of this section, the
commission shall:
(1) Retain an amount for the administrative expenses of the
commission as determined by the commission in accordance with
subsection
(d) (e) of this section;
(2) Transfer two and one-half percent of adjusted gross
receipts from all thoroughbred racetracks with West Virginia
Lottery table games to the special funds established by each
thoroughbred racetrack table games licensees for the payment of
regular racetrack purses,
such the amount being divided equally
between
such the special funds of each thoroughbred racetrack table
games licensee and transfer two and one-half percent of adjusted
gross receipts from all greyhound racetracks with West Virginia
Lottery table games to the special funds established by each
greyhound racetrack table games licensees for the payment of
regular racetrack purses,
such the amount being divided equally
between
such the special funds of each greyhound racetrack table
games licensee;
(3) Transfer two percent of the adjusted gross receipts from
all licensed racetracks to the
West Virginia Thoroughbred
Development Fund created under section thirteen-b, article
twenty-three, chapter nineteen of this code and the
West Virginia
Greyhound Breeding Development Fund created under section ten,
article twenty-three, chapter nineteen of this code. The total amount transferred under this subdivision shall be divided pro rata
among the development funds for each racetrack table games licensee
based on relative adjusted receipts from each racetrack.
No
portion of The amounts transferred to these funds may
not be used
for the benefit of any person or activity other than at or
associated with a racetrack table games licensee;
(4) Transfer one percent of the adjusted gross receipts from
each licensed racetrack to the county commissions of the counties
where racetracks with West Virginia Lottery table games are
located. The one percent transferred under this subdivision shall
be divided pro rata among the counties with a racetrack with West
Virginia Lottery table games based on relative adjusted gross
receipts from each county's racetrack:
Provided, That the county
board of education of a growth county, as that term is defined in
section three, article twenty, chapter seven of this code, which
has enacted the Local Powers Act, and in which county a racetrack
is located that has participated in the West Virginia Thoroughbred
Development Fund since on or before January 1, 1991, shall receive
the one percent of adjusted gross receipts as provided in this
subdivision for the purpose of capital improvements;
(5) Transfer two percent of the adjusted gross receipts from
each licensed racetrack to the governing bodies of municipalities
within counties where racetracks with West Virginia Lottery table
games are located, which shall be allocated as follows:
(A) One half of the amounts transferred under this subdivision
shall be allocated to the municipalities within each county having
a racetrack table games licensee, based on relative adjusted gross
receipts from West Virginia Lottery table games from those
racetracks and the total amount allocated to the municipalities
within a county shall be divided pro rata among the municipalities
based on each municipality's population determined at the most
recent United States decennial census of population:
Provided,
That: (i) For each allocation, when a municipality is physically
located in two or more counties, only that portion of its
population residing in the county where the authorized table games
are located shall be considered; (ii)
no a single municipality in
a county where West Virginia Lottery racetrack table games are
played may
not receive a total share under this
part A paragraph
that is in excess of seventy-five percent of the total distribution
under this
part A paragraph for the county in which the
municipality is located; and (iii)
no a municipality receiving
moneys under this
part A shall paragraph may not receive an amount
which is less than that received by a municipality under provisions
of subdivision
four (4), subsection
(c) (d) of this section; and
(B) One half of the amounts transferred under this subdivision
shall be allocated pro rata to the municipalities within all the
counties, having a racetrack table games licensee based on each
municipality's population determined at the most recent United States decennial census of population:
Provided, That: (i)
No A
municipality which received funds above its pro rata share pursuant
to subpart (iii),
of part A above shall paragraph (A) of this
subdivision may not receive an allocation under this
part B
paragraph; (ii) for each allocation, when a municipality is
physically located in two or more counties, only that portion of
its population residing in the county where the authorized table
games are located shall be considered; and (iii)
no a single
municipality in a county where West Virginia Lottery racetrack
games are played may
not receive a total share under this
part (B)
paragraph that is in excess of twenty-five percent of the total
transfers under this
part (B) paragraph: Provided, however, That
the county board of education of a growth county, as that term is
defined in section three, article twenty, chapter seven of this
code, which has enacted the Local Powers Act, and in which county
a racetrack is located that has participated in the West Virginia
Thoroughbred Development Fund since on or before January 1, 1991,
shall receive the two percent of adjusted gross receipts as
provided in this subdivision for the purpose of capital
improvements;
(6) Transfer one half of one percent of the adjusted gross
receipts to the governing bodies of municipalities in which a
racetrack table games licensee is located.
which The
municipalities shall each receive an equal share of the total amount allocated under this subdivision:
Provided, That
no
distribution under this subdivision
shall may not be made to any
municipality which did not have a licensed racetrack within its
municipal boundaries as they existed on January 1, 2007:
Provided,
however, That if no racetrack table games licensee is located
within a municipality,
no a transfer
shall may not be made under
this subdivision; and
(7) Distribute the remaining amounts, hereinafter referred to
as the net amounts in the Racetrack Table Games Funds, in
accordance with the provisions of subsection
(c) (d) of this
section.
(c) Beginning with the fiscal year following the licensing by
the commission of every pari-mutuel racetrack authorized by section
one, article twenty-three, chapter nineteen of this code to offer
West Virginia Lottery racetrack table games, subsection (b) of this
section shall be superseded and replaced by this subsection for
distribution of the balances in the fund established by subsection
(a) of this section. From the gross amounts deposited into the
fund, the commission shall:
(1) Retain an amount for the administrative expenses of the
commission as determined by the commission in accordance with
subsection (e) of this section;
(2) Transfer two and one-half percent of adjusted gross
receipts from all thoroughbred racetracks with West Virginia Lottery table games to the special funds established by each
thoroughbred racetrack table games licensee for the payment of
regular racetrack purses, the amount being divided equally between
the special funds of each thoroughbred racetrack table games
licensee and transfer two and one-half percent of adjusted gross
receipts from all greyhound racetracks with West Virginia Lottery
table games to the special funds established by each greyhound
racetrack table games licensee for the payment of regular racetrack
purses, the amount being divided equally between the special funds
of each greyhound racetrack table games licensee;
(3) Transfer two percent of the adjusted gross receipts from
all licensed racetracks to the West Virginia Thoroughbred
Development Fund created under section thirteen-b, article
twenty-three, chapter nineteen of this code and the West Virginia
Greyhound Breeding Development Fund created under section ten,
article twenty-three, chapter nineteen of this code. The total
amount transferred under this subdivision shall be divided pro rata
among the development funds for each racetrack table games licensee
based on relative adjusted receipts from each racetrack. The
amounts transferred to these funds may not be used for the benefit
of any person or activity other than at or associated with a
racetrack table games licensee;
(4) Transfer two percent of the adjusted gross receipts from
each licensed racetrack to the county commissions of the counties where racetracks with West Virginia Lottery table games are
located. The money transferred under this subdivision shall be
divided pro rata among the counties with a racetrack with West
Virginia Lottery table games based on relative adjusted gross
receipts from each county's racetrack: Provided, That the county
board of education of a growth county, as that term is defined in
section three, article twenty, chapter seven of this code, which
has enacted the Local Powers Act, and in which a racetrack is
located that has participated in the West Virginia Thoroughbred
Development Fund since on or before January 1, 1991, shall receive
one half of that county's share of adjusted gross receipts as
provided in this subdivision for the purpose of capital
improvements;
(5) Transfer three percent of the adjusted gross receipts from
each licensed racetrack to the governing bodies of municipalities
within counties where racetracks with West Virginia Lottery table
games are located, which shall be allocated as follows:
(A) One half of the money transferred by this subdivision
shall be allocated to the municipalities within each county, other
than those counties that have enacted the Local Powers Act, having
a racetrack table games licensee based on relative adjusted gross
receipts from West Virginia Lottery table games from those
racetracks and the total amount allocated to the municipalities
within a county shall be divided pro rata among the municipalities based on each municipality's population determined at the most
recent United States decennial census of population: Provided,
That: (i) For each allocation, when a municipality is physically
located in two or more counties, only that portion of its
population residing in the county where the authorized table games
are located shall be considered; (ii) a single municipality in a
county where West Virginia Lottery racetrack table games are played
may not receive a total share under this paragraph that is in
excess of seventy-five percent of the total distribution under this
paragraph for the county in which the municipality is located; and
(iii) a municipality receiving moneys under this paragraph may not
receive an amount which is less than that received by a
municipality under provisions of subdivision (4), subsection (d) of
this section.
(B) One half of the money transferred under this subdivision
shall be allocated pro rata to the municipalities within all the
counties, other than those counties that have enacted the Local
Powers Act, having a racetrack table games licensee based on each
municipality's population determined at the most recent United
States decennial census of population: Provided, That: (i) A
municipality which received funds above its pro rata share pursuant
to subparagraph (iii), paragraph (A) of this subdivision shall not
receive an allocation under this paragraph; (ii) for each
allocation, when a municipality is physically located in two or more counties, only that portion of its population residing in the
county where the authorized table games are located shall be
considered; and (iii) a single municipality in a county where West
Virginia Lottery racetrack games are played may not receive a total
share under this paragraph that is in excess of twenty-five percent
of the total transfers under this paragraph.
(C) Notwithstanding the provisions of paragraphs (A) and (B)
of this subdivision, when a racetrack is located in a growth
county, as that term is defined in section three, article twenty,
chapter seven of this code, which has enacted the Local Powers Act,
and in which county a racetrack is located that has participated in
the West Virginia Thoroughbred Development Fund since on or before
January 1, 1991, the county board of education shall receive two
thirds of the share of adjusted gross receipts from West Virginia
Lottery table games from the racetrack in the county as provided in
this subsection and the municipalities within the county shall
share the remaining one third of the total amount allocated as
provided in this paragraph. The municipal one-third share shall be
divided pro rata among the municipalities based on each
municipality's population determined at the most recent United
States decennial census of population. All money transferred under
this paragraph shall be used by the county board of education and
by the municipalities for the purpose of capital improvements;
(6) Transfer one half of one percent of the adjusted gross receipts to the governing bodies of municipalities in which a
racetrack table games licensee is located. The municipalities
shall each receive an equal share of the total amount allocated
under this subdivision: Provided, That distribution under this
subdivision may not be made to any municipality that did not have
a licensed racetrack within its municipal boundaries as they
existed on January 1, 2007: Provided, however, That if no
racetrack table games licensee is located within a municipality, a
transfer may not be made under this subdivision; and
(7) Distribute the remaining amounts, hereinafter referred to
as the net amounts in the Racetrack Table Games Funds, in
accordance with the provisions of subsection (d) of this section.
(c) (d) From the net amounts in the Racetrack Table Games
Fund, the commission shall:
(1) Transfer seventy-six percent to the state Debt Reduction
Fund
which is hereby created in the State Treasury. Moneys of the
fund shall be expended solely for the purpose of accelerating the
reduction of existing unfunded liabilities and existing bond
indebtedness of the state and shall be expended or transferred only
upon appropriation of the Legislature;
(2) Transfer four percent, divided pro rata based on relative
adjusted gross receipts from the individual licensed racetracks for
and on behalf of all employees of each licensed racing association,
into a special fund to be established by the Racing Commission to be used for payment into the pension plan for all employees of each
licensed racing association;
(3) Transfer ten percent, to be divided and paid in equal
shares, to each county commission in the state that is not eligible
to receive a distribution under subdivision (4), subsection (b) of
this section
: Provided, That funds transferred to county
commissions under this subdivision shall be used only to pay
regional jail expenses and the costs of infrastructure improvements
and other capital improvements;
and
(4) Transfer ten percent, to be divided and paid in equal
shares, to the governing bodies of each municipality in the state
that is not eligible to receive a distribution under subdivisions
(5) and (6), subsection (b) of this section:
Provided, That funds
transferred to municipalities under this subdivision shall be used
only to pay for debt reduction in municipal police and fire pension
funds and the costs of infrastructure improvements and other
capital improvements.
(d) (e) All expenses of the commission incurred in the
administration and enforcement of this article shall be paid from
the Racetrack Table Games Fund, including reimbursement of state
law-enforcement agencies for services performed at the request of
the commission pursuant to this article.
At no time may The
commission's expenses associated with a particular racetrack with
authorized table games under this article
may not exceed three percent of the total annual adjusted gross receipts received from
that licensee's operation of table games under this article,
including, but not limited to, all license fees or other amounts
attributable to the licensee's operation of table games under this
article.
However, for the fiscal year following the licensing by
the commission of every pari-mutuel racetrack authorized by section
one, article twenty-three, chapter nineteen of this code to offer
West Virginia Lottery racetrack table games and for the fiscal year
thereafter, the commission's expenses associated with a particular
racetrack with authorized table games under this article may not
exceed four percent of the total annual adjusted gross receipts
received from that licensee's operation of table games under this
article, including, but not limited to, all license fees or other
amounts attributable to the licensee's operation of table games
under this article. These expenses shall either be allocated to
the racetrack with West Virginia Lottery table games for which the
expense is incurred, if practicable, or be treated as general
expenses related to all racetrack table games facilities and be
allocated pro rata among the racetrack table games facilities based
on the ratio that annual adjusted gross receipts from operation of
table games at each racetrack with West Virginia Lottery table
games bears to total annual adjusted gross receipts from operation
of table games at all racetracks with West Virginia Lottery table
games during the fiscal year of the state. From this allowance, the commission shall transfer at least $100,000 but not more than
$500,000 into the Compulsive Gambling Treatment Fund created in
section nineteen, article twenty-two-a of this chapter.
NOTE: The purpose of this bill is to permit certain
municipalities and counties to increase their proportionate share
of the adjusted gross receipts from licensed pari-mutuel racetracks
with West Virginia Lottery table games after every pari-mutuel
racetrack in the state is licensed to offer West Virginia Lottery
racetrack table games, and a corresponding decrease in funds
transferred to the state after every pari-mutuel racetrack in the
state is licensed to offer West Virginia Lottery racetrack table
games. The bill also increases the percentage of gross receipts at
each racetrack that is able to be allocated for administrative or
enforcement purposes.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.