
H. B. 4165

(By Delegates Mezzatesta and Frederick)

[Introduced January 26, 2000; referred to the

Committee on Government Organization then Finance.]
A BILL to amend and reenact section six, article five-p, chapter
sixteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to further amend said
article by adding thereto a new section, designated section
ten-a; and to amend and reenact section ten, article
twenty-two-a, chapter twenty-nine of said code, all relating
to the "senior citizens prescription drug subsidy program";
enumerating criteria to be used in determining eligibility
to participate; requiring the bureau for senior services to
administer the program; requiring transfer of those funds
into a special account for the program; naming the account;
providing that three and three-fourths of video lottery net terminal income shall be placed in a special account and
used for the "senior citizens prescription drug subsidy
program"; and setting forth effective date.
Be it enacted by the Legislature of West Virginia:
That section six, article five-p, chapter sixteen of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; and that said article be
further amended by adding thereto a new section, designated
section ten-a; and that section ten, article twenty-two-a,
chapter twenty-nine of said code be amended and reenacted, all to
read as follows:
CHAPTER 16. PUBLIC HEALTH.
ARTICLE 5P. SENIOR SERVICES.
§16-5P-6. Powers and duties generally.
The commissioner shall be the executive and administrative
head of the bureau and shall have the power and duty to:
(a) Exercise general supervision of the bureau;
(b) Propose legislative rules for the effective and
expeditious performance and discharge of the duties and
responsibilities placed upon the commissioner by law;
(c) Conduct and coordinate studies of the problems of
encountered by the state's older people citizens;
(d) Encourage and promote the establishment of local
programs and services for the aging;
(e) Conduct public education programs of public education on
the problems of the related to aging;
(f) Review state programs for the aging, and annually make
recommendations to the governor and the Legislature;
(g) Encourage and assist governmental and private agencies
to coordinate effective efforts on behalf of the aging;
(h) Coordinate statewide local and voluntary efforts to
serve the aging and develop programs at the local level;
(i) Supervise fiscal management and responsibilities of the
bureau;
(j) Keep an accurate and complete record of all bureau
proceedings, record and file all bonds and contracts and assume
responsibility for the custody and preservation of all papers and
documents of the bureau;
(k) Submit an annual report to the governor on the
condition, operation and functioning of the bureau;
(l) Invoke any legal or special remedy for the enforcement
of orders or the provisions of this chapter;
(m) Standardize administration, expedite bureau business, revise rules and promote the efficiency of the service;
(n) Provide a program of continuing professional, technical
and specialized instruction for the personnel of the bureau and
local service providers; and
(o) Receive on behalf of the state any grant or gift and
accept the same, so that the title shall pass to the state. All
moneys from grants or gifts shall be deposited with the state
treasurer in a special fund and shall be used for the purposes
set forth in the grant or gift; and
(p) Administer the program provided for in section ten-a of
this article by subsidizing, within the funds available, the cost
of prescription drugs for eligible persons over the age of
sixty-five.
§16-5P-10a. Senior citizens prescription drug subsidy program.
(a) There is hereby created a senior citizens prescription
drug subsidy program, which shall be administered by the bureau
of senior services in accordance with the provisions of this
section and within the funding made available through the
provisions of section ten, article twenty-two-a, chapter
twenty-nine of this code and any appropriations: Provided, That
the provisions of this section shall not be construed to require legislative appropriations. The program shall be designed to
provide a subsidy for prescription medications purchased by
eligible citizens over the age of sixty-five: Provided, however,
That the otherwise eligible citizen does not qualify for other
third-party reimbursement for prescription drugs. Funds
administered as reimbursement for prescription drugs under the
provisions of this section may be paid directly to qualified
pharmaceutical providers, or the eligible citizen, upon proof of
purchase.
(b) The bureau shall propose legislative rules in accordance
with the provisions of article three, chapter twenty-nine-a of
this code, to accomplish the following:
(1) Establish eligibility guidelines for program
participation based on income and the need for the prescription
drugs;
(2) Develop criteria, which is to be applied uniformly, to
determine which pharmaceutical providers may participate in the
program;
(3) Determine the percentage of subsidy to be provided based
on the cost of the particular prescription drug, the availability
of an equivalent generic prescription drug, and the amount of funds available in the account;
(4) Develop criteria, which is to be applied uniformly, to
determine the circumstances in which a pharmaceutical provider or
eligible person would be declared ineligible; and
(5) Develop a system to verify that the prescription drug
has actually been dispensed to the eligible person.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§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 such deduction shall be the net terminal income. The
amount deducted for administrative costs and expenses of the
commission may not exceed four percent of gross terminal income.
(c) Net terminal income shall be divided as set out in this
subsection. The licensed racetrack's share shall be 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 general revenue
fund of the state to be appropriated by the Legislature;
(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, said 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) Beginning the first day of April, two thousand, three
and three fourths of one percent of net terminal income shall be
deposited in a special account hereby created in the treasury,
named the "Senior Citizen's Drug Prescription Assistance Fund"
and, subject to appropriation by the Legislature, used by the
senior citizens prescription drug subsidy program to subsidize,
within the funds available, the cost of prescription drugs for
eligible persons over the age of sixty-five in accordance with
the provisions of section ten-a, article five-p, chapter sixteen
of this code.

(5) (6) 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) (7) The West Virginia thoroughbred breeders classic
shall receive one percent of the net terminal income which shall
be used for purses. The moneys shall be deposited in the
separate account established for the classic under section
thirteen, article twenty-three, chapter nineteen of this code;

(7) (8) A licensee shall receive forty-seven percent of net
terminal income;

(8) (9) 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) (10) 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, chapter twenty-nine of this code: 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, chapter twenty-nine of this code
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, and
not more than twenty thousand dollars be deposited in the "John
F. 'Jack' Bennett Fund": 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,
article four, chapter five-a of this code and the grants for
competitive arts program fund created under section three,
article one, chapter twenty-nine of this code.
(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, which 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 must 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 such 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 must 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 create the "Senior
Citizens Prescription Drug Subsidy Program." Provisions of the
bill include: (1) Enumerating criteria to be used in determining
eligibility to benefit from the program; (2) requiring the bureau
of senior citizens to administer the program; and (3) providing
that three and three fourths of one percent of video lottery net
terminal income be placed in a special account and used to fund
the program.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
Section 10-a is new; therefore, strike-throughs and
underscoring have been omitted.