
SECOND ENROLLMENT
H. B. 4689

(By Delegates Faircloth, Doyle and Manuel)

[Passed March 18, 2000; in effect from passage.]
AN ACT to amend and reenact sections thirteen and thirteen-b,
article twenty-three, chapter nineteen of the code of West
Virginia, one thousand nine hundred thirty-one, as amended; to
further amend said article twenty-three by adding thereto a
new section, designated section thirteen-c; and to amend and
reenact section ten, article twenty-two-a, chapter twenty-nine
of said code,
all relating generally to horse and dog racing;
disposition of funds for payment of outstanding and unredeemed
pari-mutuel tickets; increasing prize money for restricted
races; defining West Virginia-bred foal; limiting
qualification for payments from West Virginia accredited race
fund to West Virginia-bred foals; providing for distribution
of racetrack video lottery money for purses at breeders'
classic to be expended as provided in racing statutes; and making technical changes that make the code more readable and
delete obsolete language
.
Be it enacted by the Legislature of West Virginia:
That sections thirteen and thirteen-b, article twenty-three,
chapter nineteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted; that
said article twenty-three be further amended by adding thereto a
new section, designated section thirteen-c; and that section ten,
article twenty-two-a, chapter twenty-nine of said code, be
amended and reenacted, all to read as follows:
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-13. Disposition of funds for payment of outstanding and
unredeemed pari-mutuel tickets; publication of
notice; irredeemable tickets; stake races for dog
tracks.
(a) All moneys held by any licensee for the payment of
outstanding and unredeemed pari-mutuel tickets, if not claimed
within ninety days after the close of a horse or dog race meeting
or the televised racing day, as the case may be, in connection
with which the tickets were issued, shall be turned over by the
licensee to the racing commission within fifteen days after the
expiration of the ninety-day period, and the licensee shall give
any information required by the racing commission concerning the outstanding and unredeemed tickets. The moneys shall be deposited
by the racing commission in a banking institution of its choice
in a special account to be known as "West Virginia Racing
Commission Special Account - Unredeemed Pari-Mutuel Tickets".
Notice of the amount, date and place of each deposit shall be
given by the racing commission, in writing, to the state
treasurer. The racing commission shall then cause to be published
a notice to the holders of the outstanding and unredeemed pari-
mutuel tickets, notifying them to present their unredeemed
tickets for payment at the principal office of the racing
commission within ninety days from the date of the publication of
the notice. The notice shall be published within fifteen days
following the receipt of the outstanding and unredeemed pari-
mutuel ticket moneys by the commission from the licensee as a
Class I legal advertisement in compliance with the provisions of
article three, chapter fifty-nine of this code, and the
publication area for the publication shall be the county in which
the horse or dog race meeting was held and the county in which
the televised racing day wagering was conducted in this state.

(b) Any outstanding and unredeemed pari-mutuel tickets that
are not presented for payment within ninety days from the date of
the publication of the notice are thereafter irredeemable, and
the moneys theretofore held for the redemption of the pari-mutuel
tickets shall become the property of the racing commission and shall be expended as provided in this subsection. The racing
commission shall maintain separate accounts for each licensee and
shall record in each separate account the moneys turned over by
the licensee and the amount expended at the licensee's track for
the purposes set forth in this subsection. The moneys in the
"West Virginia Racing Commission Special Account - Unredeemed
Pari-Mutuel Tickets" shall be expended as follows:

(1) To the owner of the winning horse in any horse race at
a horse race meeting held or conducted by any licensee: Provided,
That the owner of the horse is at the time of the horse race a
bona fide resident of this state, a sum equal to ten percent of
the purse won by the horse at that race. The commission may
require proof that the owner was, at the time of the race, a bona
fide resident of this state. Upon proof by the owner that he or
she filed a personal income tax return in this state for the
previous two years and that he or she owned real or personal
property in this state and paid taxes in this state on real or
personal property for the previous two years, he or she shall be
presumed to be a bona fide resident of this state; and

(2) To the breeder (that is, the owner of the mare) of the
winning horse in any horse race at a horse race meeting held or
conducted by any licensee: Provided, That the mare foaled in this
state, a sum equal to ten percent of the purse won by the horse;
and

(3) To the owner of the stallion which sired the winning
horse in any horse race at a horse race meeting held or conducted
by any licensee: Provided, That the mare which foaled the winning
horse was served by a stallion standing and registered in this
state, a sum equal to ten percent of the purse won by the horse;
and

(4) To those horse racing licensees not participating in the
thoroughbred development fund authorized in section thirteen-b of
this article, the unexpended balance of the licensee's account
not expended as provided in subdivisions (1), (2) and (3) of this
subsection: Provided, That all moneys distributed under this
subdivision shall be expended solely for capital improvements at
the licensee's track: Provided, however, That the capital
improvements must be approved, in writing, by the West Virginia
racing commission before funds are expended by the licensee for
that capital improvement; and

(5) When the moneys in the special account, known as the
"West Virginia Racing Commission Special Account - Unredeemed
Pari-Mutuel Tickets" will more than satisfy the requirements of
subdivisions (1), (2), (3) and (4) of this subsection, the West
Virginia racing commission shall have the authority to expend the
excess moneys from unredeemed horse racing pari-mutuel tickets as
purse money in any race conditioned exclusively for West Virginia
bred or sired horses, and to expend the excess moneys from unredeemed dog racing pari-mutuel tickets in supplementing purses
and establishing stake races and dog racing handicaps at the dog
tracks: Provided, That subject to the availability of funds, the
commission shall, after the requirements of subdivisions (1),
(2), (3) and (4) of this subsection have been satisfied:

(A) Transfer annually two hundred thousand dollars to the
"West Virginia Racing Commission Special Account - West Virginia
Greyhound Breeding Development Fund"; and

(B) Transfer annually two hundred thousand dollars into a
separate account to be used for stakes races for West Virginia
bred greyhounds at dog racetracks.

(c) The commission shall submit to the legislative auditor
a quarterly report and accounting of the income, expenditures and
unobligated balance in the special account created by this
section known as the "West Virginia Racing Commission Special
Account - Unredeemed Pari-Mutuel Tickets".

(d) Nothing contained in this article shall prohibit one
person from qualifying for all or more than one of the aforesaid
awards or for awards under section thirteen-b of this article.

(e) The cost of publication of the notice provided for in
this section shall be paid from the funds in the hands of the
state treasurer collected from the pari-mutuel pools' tax
provided for in section ten of this article, when not otherwise
provided in the budget; but no such costs shall be paid unless an itemized account thereof, under oath, be first filed with the
state auditor.
§19-23-13b. West Virginia thoroughbred development fund;
distribution; restricted races; nonrestricted
purse supplements.
(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". Notice of the amount, date and place of the
deposit shall be given by the racing commission, in writing, to
the state treasurer. The purpose of the fund 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 such
times and in such 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 and the account established in subsection (a)
of this section shall operate on an annual basis.
(d) Funds in the thoroughbred development fund shall be
expended for awards and purses except as otherwise provided in
this section.
Annually, the first one hundred thousand dollars of the fund
shall be available for distribution for a maximum of four stakes
races. One of these races shall be the West Virginia futurity and the second shall be the Frank Gall memorial stakes. The
remaining races may be chosen by the committee set forth in
subsection(g) 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 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 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) shall only be paid
on the first one hundred thousand dollars of any purse, and not
on any amounts in excess thereof.
(2) The owner of a West Virginia sire of an accredited
thoroughbred horse that earns a purse in any race at a 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 races for a particular stallion to the total
purses earned by the progeny of all accredited West Virginia
stallions in the 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 thereof.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any 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 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 thereof.
(4) In no event shall 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 (e).
(5) Any balance in the breeders/raisers, sire owners and
purse supplement funds after yearly distributions shall first be
utilized to fund the races established in subsection (g) of this
section. Any amount not so used shall revert back into the
general account of the thoroughbred development fund 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)(1) Each pari-mutuel thoroughbred horse track shall
provide at least one restricted race per three racing days.
(2) The restricted races established in this subsection
shall be administered by a three-member committee 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 thoroughbred
breeders.
(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.
(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.
(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.
(h) Effective on and after the first day of July, two
thousand, as used in this section, "West Virginia bred-foal"
means a horse that was born in the State of West Virginia.
(i) 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 (2) above, 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 shall
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.
§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, 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.
(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)
of 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,
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.
(d) The commission shall submit to the legislative auditor
a quarterly report and accounting of the income, expenditures and
unobligated balance in the special bank accounts authorized by
this section.
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 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) 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-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, 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
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, 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.