Senate Bill No. 526


(By Senators Craigo, Anderson, Chafin, Dittmar, Love, Minard,

Prezioso, Wooton, McKenzie, Ball, Bowman, Sharpe, Edgell,

Helmick, Ross, McCabe, Dawson, Redd, Kessler,

Plymale, Bailey, Jackson, Snyder, Boley, Hunter, Unger, Mitchell, Fanning and Tomblin, Mr. President)

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[Introduced February 17, 2000; referred to the Committee on Government Organization; and then to the Committee on Finance.]
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A BILL to repeal sections eight, nine, eleven, twelve and thirteen, article two, chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact section four, article ten, chapter four of said code; to amend and reenact sections two and ten, article two, chapter five-b of said code; to amend and reenact section one, article two, chapter five-f of said code; to further amend said code by adding thereto a new chapter, designated chapter five-h; to amend and reenact section two, article five, chapter twenty of said code; to amend and reenact section ten, article twenty-two-a, chapter twenty-nine of said code; and to amend and reenact section twenty-two, article twenty-five of said chapter, all relating to the tourism commission; making an independent division of tourism within the bureau of commerce; transferring certain duties of the tourism director to a newly created position of director of the division of tourism; authorizing the governor to appoint the director of the division; and providing for the transfer of certain funds, employees and property from the development office to the division of tourism.

Be it enacted by the Legislature of West Virginia:
That sections eight, nine, eleven, twelve and thirteen, article two, chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that section four, article ten, chapter four of said code be amended and reenacted; that sections two and ten, article two, chapter five-b of said code be amended and reenacted; that section one, article two, chapter five-f of said code be amended and reenacted; that said code be further amended by adding thereto a new chapter, designated chapter five-h; that section two, article five, chapter twenty of said code be amended and reenacted; that section ten, article twenty-two-a, chapter twenty-nine of said code be amended and reenacted; and that section twenty-two, article twenty-five of said chapter be amended and reenacted, all to read as follows:
CHAPTER 4. THE LEGISLATURE.

ARTICLE 10. THE WEST VIRGINIA SUNSET LAW.
§4-10-4. Termination of agencies following full performance evaluations.
The following agencies shall be are terminated on the date indicated, but no agency may be is terminated under this section unless a full performance evaluation has been conducted upon such the agency:
(1) On the first day of July, two thousand: Division of corrections; division of environmental protection; division of workers' compensation; department of health and human resources; department of tax and revenue.
(2) On the first day of July, two thousand one: Division of natural resources; purchasing division within the department of administration; division of motor vehicles.
(3) On the first day of July, two thousand two: Division of highways; division of labor.
(4) On the first day of July, two thousand three: Division of culture and history; school building authority.
(5) On the first day of July, two thousand four: Division of personnel; division of rehabilitation services.
(6) On the first day of July, two thousand five: Parkways, economic development and tourism authority; division of tourism functions within the development office and tourism commission.
CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.

ARTICLE 2. WEST VIRGINIA DEVELOPMENT OFFICE.

§5B-2-2. Council for community and economic development; members, appointment and expenses; meetings; appointment and compensation of director.

(a) The council for community and economic development, within the West Virginia development office, is a body corporate and politic, constituting a public corporation and government instrumentality. Membership on the council consists of:
(1) Nine members to be appointed by the governor, with the advice and consent of the Senate, representing community or regional interests, including economic development, commerce, banking, manufacturing, the utility industry, the mining industry, the telecommunications/data processing industry, small business, labor, tourism or agriculture: Provided, That one member appointed pursuant to this subsection shall be a member of a regional planning and development council. Of the nine members representing community or regional interests, three members shall be from each congressional district of the state and shall be appointed in such a manner as to provide a broad geographical distribution of members of the council;
(2) Two at-large members to be appointed by the governor with the advice and consent of the Senate;
(3) One member to be appointed by the governor from a list of two persons recommended by the speaker of the House of Delegates;
(4) One member to be appointed by the governor from a list of two persons recommended by the president of the Senate;
(5) The president of the West Virginia economic development council; and
(6) The chair director, or his or her designee, of the division of tourism commission created pursuant to the provisions of section eight of this article one, chapter five-h of this code.
(b) The governor shall appoint the appointed members of the council for four-year terms. Any member whose term has expired shall serve until his or her successor has been duly appointed and qualified. Any person appointed to fill a vacancy shall serve serves only for the unexpired term. Any member is eligible for reappointment. In cases of any vacancy in the office of a member, the vacancy shall be filled by the governor in the same manner as the original appointment.
(c) Members of the council are not entitled to compensation for services performed as members, but are entitled to reimbursement for all reasonable and necessary expenses actually incurred in the performance of their duties. A majority of the members constitute a quorum for the purpose of conducting business. The council shall elect its chair for a term to run concurrent with the term of office of the member elected as chair. The chair is eligible for successive terms in that position.
(d) The council shall employ an executive director of the West Virginia development office, who is qualified for the position by reason of his or her extensive education and experience in the field of professional economic development. The executive director shall serve serves at the will and pleasure of the council. The salary of the director shall be fixed by the council. The director shall have has overall management responsibility and administrative control and supervision within the West Virginia development office. It is the intention of the Legislature that the director provide professional and technical expertise in the field of professional economic and tourism development in order to support the policy making functions of the council, but that the director not be a public officer, agent, servant or contractor within the meaning of section thirty-eight, article VI of the constitution of the state and not be a statutory officer within the meaning of section one, article two, chapter five-f of this code. Subject to the provisions of the contract provided for in section four of this article, the director may hire and fire economic development representatives employed pursuant to the provisions of section five of this article.
§5B-2-10. Program and policy action statement; submission to joint committee on government and finance.
The tourism commission, the West Virginia development office and any other authorities, boards, commissions, corporations or other entities created or amended under this chapter and article eleven, chapter eighteen-b of this code, shall prepare and submit to the joint committee on government and finance on or before the first day of December, one thousand nine hundred ninety-five, and of each year, thereafter a program and policy action statement which shall outline outlines in specific detail according to the purpose, powers and duties of the office or section, its procedure, plan and program to be used in accomplishing its goals and duties as required under this article.
CHAPTER 5F. REORGANIZATION OF THE EXECUTIVE BRANCH

OF STATE GOVERNMENT.

ARTICLE 2. TRANSFER OF AGENCIES AND BOARDS.

§5F-2-1. Transfer and incorporation of agencies and boards; funds.
(a) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any such the agency or board, are hereby transferred to and incorporated in and shall be administered as a part of the department of administration:
(1) Building commission provided for in article six, chapter five of this code;
(2) Public employees insurance agency and public employees insurance agency advisory board provided for in article sixteen, chapter five of this code;
(3) Governor's mansion advisory committee provided for in article five, chapter five-a of this code;
(4) Commission on uniform state laws provided for in article one-a, chapter twenty-nine of this code;
(5) Education and state employees grievance board provided for in article twenty-nine, chapter eighteen of this code and article six-a, chapter twenty-nine of this code;
(6) Board of risk and insurance management provided for in article twelve, chapter twenty-nine of this code;
(7) Boundary commission provided for in article twenty-three, chapter twenty-nine of this code;
(8) Public defender services provided for in article twenty-one, chapter twenty-nine of this code;
(9) Division of personnel provided for in article six, chapter twenty-nine of this code;
(10) The West Virginia ethics commission provided for in article two, chapter six-b of this code;
(11) Consolidated public retirement board provided for in article ten-d, chapter five of this code; and
(12) The child support enforcement division designated in chapter forty-eight-a of this code.
(b) The department of commerce, labor and environmental resources and the office of secretary of the department of commerce, labor and environmental resources are hereby abolished. For purposes of administrative support and liaison with the office of the governor, the following agencies and boards, including all allied, advisory and affiliated entities shall be grouped under three bureaus as follows:
(1) Bureau of commerce:
(A) Division of labor provided for in article one, chapter twenty-one of this code, which shall include:
(i) Occupational safety and health review commission provided for in article three-a, chapter twenty-one of this code; and
(ii) Board of manufactured housing construction and safety provided for in article nine, chapter twenty-one of this code;
(B) Office of miners' health, safety and training provided for in article one, chapter twenty-two-a of this code. The following boards are transferred to the office of miners' health, safety and training for purposes of administrative support and liaison with the office of the governor:
(i) Board of coal mine health and safety and coal mine safety and technical review committee provided for in article six, chapter twenty-two-a of this code;
(ii) Board of miner training, education and certification provided for in article seven, chapter twenty-two-a of this code; and
(iii) Mine inspectors' examining board provided for in article nine, chapter twenty-two-a of this code;
(C) The West Virginia development office provided for in article two, chapter five-b of this code, which shall include:
(i) Enterprise zone authority provided for in article two-b, chapter five-b of this code; and
(ii) Economic development authority provided for in article fifteen, chapter thirty-one of this code; and
(iii) Tourism commission provided for in article two, chapter five-b of this code and the office of the tourism commissioner;
(D) Division of natural resources and natural resources commission provided for in article one, chapter twenty of this code. The Blennerhassett historical state park provided for in article eight, chapter twenty-nine of this code shall be is under the division of natural resources;
(E) Division of forestry provided for in article one-a, chapter nineteen of this code;
(F) Geological and economic survey provided for in article two, chapter twenty-nine of this code;
(G) Water development authority and board provided for in article one, chapter twenty-two-c of this code; and
(H) Division of tourism and tourism commission provided for in article one, chapter five-h of this code;
(2) Bureau of employment programs provided for in article one, chapter twenty-one-a of this code;
(3) Bureau of environment:
(A) Air quality board provided for in article two, chapter twenty-two-b of this code;
(B) Solid waste management board provided for in article three, chapter twenty-two-c of this code;
(C) Environmental quality board, or its successor board, provided for in article three, chapter twenty-two-b of this code;
(D) Division of environmental protection provided for in article one, chapter twenty-two of this code;
(E) Surface mine board provided for in article four, chapter twenty-two-b of this code;
(F) Oil and gas inspectors' examining board provided for in article seven, chapter twenty-two-c of this code;
(G) Shallow gas well review board provided for in article eight, chapter twenty-two-c of this code; and
(H) Oil and gas conservation commission provided for in article nine, chapter twenty-two-c of this code.
(c) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any such the agency or board, are hereby transferred to and incorporated in and shall be administered as a part of the department of education and the arts:
(1) Library commission provided for in article one, chapter ten of this code;
(2) Educational broadcasting authority provided for in article five, chapter ten of this code;
(3) University of West Virginia board of trustees provided for in article two, chapter eighteen-b of this code;
(4) Board of directors of the state college system provided for in article three, chapter eighteen-b of this code;
(5) Joint commission for vocational-technical-occupational education provided for in article three-a, chapter eighteen-b of this code;
(6) Division of culture and history provided for in article one, chapter twenty-nine of this code; and
(7) Division of rehabilitation services provided for in section two, article ten-a, chapter eighteen of this code.
(d) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any such agency or board, are hereby transferred to and incorporated in and shall be administered as a part of the department of health and human resources:
(1) Human rights commission provided for in article eleven, chapter five of this code;
(2) Division of human services provided for in article two, chapter nine of this code;
(3) Bureau of public Division of health provided for in article one, chapter sixteen of this code;
(4) Office of emergency medical services and the emergency medical services advisory council thereto provided for in article four-c, chapter sixteen of this code;
(5) Health care cost review authority provided for in article twenty-nine-b, chapter sixteen of this code;
(6) Commission on mental retardation provided for in article fifteen, chapter twenty-nine of this code;
(7) Women's commission provided for in article twenty, chapter twenty-nine of this code; and
(8) The child support enforcement division designated in chapter forty-eight-a of this code.
(e) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any such agency or board, are hereby transferred to and incorporated in and shall be administered as a part of the department of military affairs and public safety:
(1) Adjutant general's department provided for in article one-a, chapter fifteen of this code;
(2) Armory board provided for in article six, chapter fifteen of this code;
(3) Military awards board provided for in article one-g, chapter fifteen of this code;
(4) West Virginia state police provided for in article two, chapter fifteen of this code;
(5) Office of emergency services and disaster recovery board provided for in article five, chapter fifteen of this code and emergency response commission provided for in article five-a of said chapter;
(6) Sheriffs' bureau provided for in article eight, chapter fifteen of this code;
(7) Division of corrections provided for in chapter twenty-five of this code;
(8) Fire commission provided for in article three, chapter twenty-nine of this code;
(9) Regional jail and correctional facility authority provided for in article twenty, chapter thirty-one of this code;
(10) Board of probation and parole provided for in article twelve, chapter sixty-two of this code; and
(11) Division of veterans' affairs and veterans' council provided for in article one, chapter nine-a of this code.
(f) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any such the agency or board, are hereby transferred to and incorporated in and shall be administered as a part of the department of tax and revenue:
(1) Tax division provided for in article one, chapter eleven of this code;
(2) Racing commission provided for in article twenty-three, chapter nineteen of this code;
(3) Lottery commission and position of lottery director provided for in article twenty-two, chapter twenty-nine of this code;
(4) Agency of insurance commissioner provided for in article two, chapter thirty-three of this code;
(5) Office of alcohol beverage control commissioner provided for in article sixteen, chapter eleven of this code and article two, chapter sixty of this code;
(6) Board of banking and financial institutions provided for in article three, chapter thirty-one-a of this code;
(7) Lending and credit rate board provided for in chapter forty-seven-a of this code;
(8) Division of banking provided for in article two, chapter thirty-one-a of this code; and
(9) The child support enforcement division as designated in chapter forty-eight-a of this code.
(g) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any such the agency or board, are hereby transferred to and incorporated in and shall be administered as a part of the department of transportation:
(1) Division of highways provided for in article two-a, chapter seventeen of this code;
(2) Parkways, economic development and tourism authority provided for in article sixteen-a, chapter seventeen of this code;
(3) Division of motor vehicles provided for in article two, chapter seventeen-a of this code;
(4) Driver's licensing advisory board provided for in article two, chapter seventeen-b of this code;
(5) Aeronautics commission provided for in article two-a, chapter twenty-nine of this code;
(6) State rail authority provided for in article eighteen, chapter twenty-nine of this code; and
(7) Port authority provided for in article sixteen-b, chapter seventeen of this code.
(h) Except for such those powers, authority and duties as have been delegated to the secretaries of the departments by the provisions of section two of this article, the existence of the position of administrator and of the agency and the powers, authority and duties of each administrator and agency shall is not be affected by the enactment of this chapter.
(i) Except for such those powers, authority and duties as have been delegated to the secretaries of the departments by the provisions of section two of this article, the existence, powers, authority and duties of boards and the membership, terms and qualifications of members of such the boards shall is not be affected by the enactment of this chapter and all boards which are appellate bodies or were otherwise established to be independent decision makers shall do not have their appellate or independent decision-making status affected by the enactment of this chapter.
(j) Any department previously transferred to and incorporated in a department created in section two, article one of this chapter by prior enactment of this section in chapter three, acts of the Legislature, first extraordinary session, one thousand nine hundred eighty-nine, and subsequent amendments thereto, shall henceforth be read, construed and understood to mean means a division of the appropriate department so created. Wherever elsewhere in this code, in any act, in general or other law, in any rule or regulation, or in any ordinance, resolution or order, reference is made to any department transferred to and incorporated in a department created in section two, article one of this chapter, such the reference shall henceforth be read, construed and understood to mean means a division of the appropriate department so created, and any such reference elsewhere to a division of a department so transferred and incorporated shall henceforth be read, construed and understood to mean means a section of the appropriate division of the department so created.
(k) When an agency, board or commission is transferred under a bureau or agency other than a department headed by a secretary pursuant to this section, that transfer shall be construed to be is solely for purposes of administrative support and liaison with the office of the governor, a department secretary or a bureau. The bureaus created by the Legislature upon the abolishment of the department of commerce, labor and environmental resources in the year one thousand nine hundred ninety-four shall be headed by a commissioner or other statutory officer of an agency within that bureau. Nothing in this section shall be construed to extend extends the powers of department secretaries under section two of this article to any person other than a department secretary and nothing herein shall be construed to limit or abridge in this section limits or abridges the statutory powers and duties of statutory commissioners or officers pursuant to this code. Upon the abolishment of the office of secretary of the department of commerce, labor and environmental resources, the governor may appoint a statutory officer serving functions formerly within that department to a position which was filled by the secretary ex officio.
CHAPTER 5H. TOURISM.

ARTICLE 1. DIVISION OF TOURISM.
§5H-1-1. Division of tourism.
There is within the bureau of commerce a division of tourism.
§5H-1-2. Director of the division of tourism.
(a) The governor shall appoint, with the advice and consent of the Senate, a director of the division of tourism. The annual salary of the director is seventy thousand dollars. The director shall assist the tourism commission in the performance of its responsibilities and perform other duties required in this article.
(b) The director is the chief executive officer of the division. The director shall organize the division into units of activity the director considers desirable for the orderly, efficient and economical administration of the division and for the accomplishment of its objects and purposes. The director may appoint assistants and other employees needed for the operation of the division and may prescribe their powers and duties. All employees of the division shall be in the classified service.
(b) The director has the power to and may designate supervisory officers or other officers or employees of the division to substitute for him or her on any board or commission established under this code or to sit in his or her place in any meetings or other activities with the substitute having the same powers, duties, authority and responsibility as the director.
(c) The director has the power and duty:
(1) To acquire for the state in the name of the division by purchase, lease or agreement, or accept or reject for the state, in the name of the division, gifts, donations, contributions, bequests or devises of money, security or property, both real and personal, and any interest in the property, to effectuate or support the purposes of this article;
(2) To make recommendations to the governor and the Legislature of any legislation considered necessary to facilitate the carrying out of any of the director's powers and duties and to exercise any other power that may be necessary or proper for the orderly conduct of the business of the division and the effective discharge of the duties of the director;
(3) To cooperate and assist in the production of motion pictures and television and other communications;
(4) To purchase advertising time or space in or upon any medium generally engaged or employed for advertising, to advertise and market the resources of the state or to inform the public at large or any specifically targeted group or industry about the benefits of living in, investing in, producing in, buying from, contracting with, or in any other way related to, the state of West Virginia or any business, industry, agency, institution or other entity in the state. Of any funds appropriated and allocated for purposes of advertising and marketing expenses for the promotion and development of tourism, at least twenty percent of the funds shall be expended, with the approval of the director of the division of natural resources, to advertise, promote and market state parks, state forests, state recreation areas and wildlife recreational resources;
(5) To promote and disseminate information related to the attractions of the state through the operation of the state's telemarketing initiative, which telemarketing initiative shall include a centralized reservation and information system for state parks and recreational facilities; and
(6) To take additional actions as may be necessary to carry out the duties and programs described in this article.
(d) The director shall submit a report annually to the council for community and economic development about the development of the tourism industry in the state.
(e)(1) The director shall propose for promulgation, legislative rules pursuant to the provisions of chapter twenty-nine-a of this code to carry out the division's purposes and programs, to include generally the programs available, the procedure and eligibility of applications relating to assistance under the programs and the staff structure necessary to support the programs, which structure shall include the qualifications for a professional staff person qualified by reason of exceptional training and experience in the field of advertising to supervise the advertising and promotion functions of the division, and shall further include provision for the management of West Virginia welcome centers. The director is further authorized to promulgate procedural rules to include instructions and forms for applications relating to assistance.
(2) Rules of the tourism commission in effect on the effective day of this article continue in effect until lawfully changed by the director.
§5H-1-3. Tourism commission; members, appointment and expenses.
(a) The tourism commission created under former provisions of section eight, article two, chapter five-b of this code is continued. It is a body corporate and politic, constituting a public corporation and government instrumentality. Membership on the council consists of thirteen members:
(1) Nine members to be appointed by the governor, with the advice and consent of the Senate, representing participants in the state's tourism industry. At least seven of the members shall be from the private sector. Of the nine members so appointed, one shall represent a convention and visitors bureau and another shall be a member of a convention and visitors bureau. In making the appointments the governor may select from a list provided by the West Virginia hospitality and travel association of qualified applicants. Of the nine members so appointed, no more than three may be from each congressional district within the state and shall be appointed to provide the broadest geographic distribution which is feasible;
(2) One member to be appointed by the governor from the membership of the council for community and economic development created pursuant to the provisions of section two, article two, chapter five-b of this code;
(3) One member to be appointed by the governor to represent public sector nonstate participants in the tourism industry within the state;
(4) The secretary of transportation or his or her designee, ex officio; and
(5) The director of the division of natural resources or his or her designee, ex officio.
(b) Each member appointed by the governor shall serve staggered terms of four years. Any member whose term has expired serves until his or her successor has been appointed. Any person appointed to fill a vacancy serves only for the unexpired term. Any member is eligible for reappointment. In cases of vacancy in the office of member, the vacancy shall be filled by the governor in the same manner as the original appointment. All members serving on the effective date of this chapter may continue to serve until their terms expire.
(c) Members of the commission are not entitled to compensation for services performed as members. A majority of these members constitute a quorum for the purpose of conducting business. The governor shall appoint a chair of the commission for a term to run concurrent with the term of the office of the member appointed to be the chair. The chair is eligible for successive terms in that position.
§5H-1-4. Powers and duties of tourism commission.
(a) The commission shall develop a comprehensive tourism promotion and development strategy for West Virginia. "Comprehensive tourism promotion and development strategy" means a plan that outlines strategies and activities designed to continue, diversify or expand the tourism base of the state as a whole; create tourism jobs; develop a highly skilled tourism work force; facilitate business access to capital for tourism; advertise and market the resources offered by the state with respect to tourism promotion and development; facilitate cooperation among local, regional and private tourism enterprises; improve infrastructure on a state, regional and community level in order to facilitate tourism development; improve the tourism business climate generally; and leverage funding from sources other than the state, including local, federal and private sources.
(b) In developing its strategies, the commission shall consider the following:
(1) Improvement and expansion of existing tourism marketing and promotion activities;
(2) Promotion of cooperation among municipalities, counties, and the West Virginia infrastructure and jobs development council in funding physical infrastructure to enhance the potential for tourism development.
§5H-1-5. Program and policy action statement; submission to joint committee on government and finance.

The director shall prepare and submit to the joint committee on government and finance on or before the first day of December, two thousand and each year after that, a program and policy action statement which outlines in specific detail according to the purpose, powers and duties of the director, the director's procedure, plan and program to be used in implementing the commission's comprehensive tourism promotion and development strategy and in accomplishing the director's goals and duties as required under this article.
§5H-1-6. Public private partnerships.
(a) The director is authorized to enter into contractual or joint venture agreements with a nonprofit corporation organized pursuant to the corporate laws of the state, organized to permit qualification pursuant to Section 501(c) of the Internal Revenue Code and organized for purposes of the promotion and development of tourism in West Virginia, and funded from sources other than the state. Members of the commission and the director are authorized to sit on the board of directors of the private nonprofit corporation.
(b) From time to time the director may enter into joint ventures in which the division of tourism and the nonprofit corporation share in the development and funding of tourism promotion or development programs.
(c) Contracts entered into pursuant to this section for longer than one fiscal year shall contain, in substance, a provision that the contract is considered canceled without further obligation on the part of the state if the Legislature or, where appropriate, the federal government fails to appropriate sufficient funds for the contract or acts to impair the contract or cause it to be canceled.
§5H-1-7. Tourism promotion fund continued; use of funds.
(a) The tourism promotion fund is continued in the state treasury. It the a special revenue fund known as the "tourism promotion fund" created under prior enactment of section twelve, article two, chapter five-b of this code.
(b) A minimum of five percent of the moneys deposited in the fund each year shall be used solely for direct advertising for West Virginia travel and tourism. At least twenty percent of these funds shall be expended, with the approval of the director of the division of natural resources, to effectively promote and market the state's parks, state forests, state recreation areas and wildlife recreational resources. Direct advertising means advertising which is limited to television, radio, mailings, newspaper, magazines and outdoor billboards, in any combination.
(c) The balance of the moneys deposited in the fund shall be used for direct advertising within the state's travel regions as defined by the director. The funds shall be made available to these districts according to legislative rules promulgated by the director.
§5H-1-8. Savings and transfer provisions.
(a) All actions which have been taken by the tourism commission prior to the effective date of this article continue in effect according to their terms until modified, terminated, superseded, set aside or revoked in accordance with the law.
(b) It is the intent of this article to transfer from the development office into the division of tourism those functions relating to the development of tourism in the state. All personnel payroll positions and employees occupying positions in the development office primarily dedicated to the support of the tourism commission shall be transferred to the division of tourism. In order to provide for a smooth transition, the commissioner of commerce may determine those positions and employees that are to be transferred and provide that the transfers take effect no later than the last day of September, two thousand. Funds allocated for the positions transferred shall also be transferred to the division of tourism.
(d) It is the intent of the Legislature that the reduction in the responsibilities of the tourism commission and the creation of the division of tourism not hinder or interfere in any ongoing programs.
(e) All equipment and records of the development office primarily dedicated to or relating to the tourism commission and its activities shall be transferred to the division of tourism. The commissioner of commerce may determine the equipment and records to be transferred and provide that the transfers provided for in this subsection take effect no later than the last day of September, two thousand.
§5H-1-9. Continuation.
Pursuant to the provisions of chapter four, article ten of this code, the division of tourism and the tourism commission shall continue to exist until the first day of July, two thousand five.
CHAPTER 20. NATURAL RESOURCES.

ARTICLE 5. PARKS AND RECREATION.
§20-5-2. Powers of the director with respect to the section of parks and recreation.
The director of the division of natural resources is responsible for the execution and administration of the provisions in this article as an integral part of the parks and recreation program of the state and shall organize and staff the section of parks and recreation for the orderly, efficient and economical accomplishment of these ends. The authority granted in the year one thousand nine hundred ninety-four to the director of the division of natural resources to employ up to six additional unclassified personnel to carry out the parks functions of the division of natural resources is continued.
The director of the division of natural resources shall:
(a) Establish, manage and maintain the state's parks and recreation system for the benefit of the people of this state and do all things necessary and incidental to the development and administration of the state's parks and recreation system;
(b) Acquire property for the state in the name of the division of natural resources by purchase, lease or agreement; retain, employ and contract with legal advisors and consultants; or accept or reject for the state, in the name of the division, gifts, donations, contributions, bequests or devises of money, security or property, both real and personal, and any interest in the property, including lands and waters, for state park or recreational areas for the purpose of providing public recreation: Provided, That the provisions of section twenty, article one of this chapter are specifically made applicable to any acquisitions of land: Provided, however, That any sale, exchange or transfer of property for the purposes of completing land acquisitions or providing improved recreational opportunities to the citizens of the state is subject to the procedures of article one-a of this chapter: Provided further, That no sale of any park or recreational area property, including lands and waters, used for purposes of providing public recreation on the effective date of this article and no privatization of any park may occur without statutory authority;
(c) Approve and direct the use of all revenue derived from the operation of the state parks and public recreation system for the operation, maintenance and improvement of the system, individual projects of the system or for the retirement of park development revenue bonds;
(d) Approve the use of no less than twenty percent of the: (i) Funds appropriated for purposes of advertising and marketing expenses related to the promotion and development of tourism, pursuant to subsection (j), section eighteen, article twenty-two, chapter twenty-nine of this code; and (ii) funds authorized for expenditure from the tourism promotion fund for purposes of direct advertising, pursuant to section twelve, article two, chapter five- b seven, article one, chapter five-h of this code and section ten, article twenty-two-a, chapter twenty-nine of this code, to effectively promote and market the state's parks, state forests, state recreation areas and wildlife recreational resources;
(e) Issue park development revenue bonds as provided in this article;
(f) Provide for the construction and operation of cabins, lodges, resorts, restaurants and other developed recreational service facilities, subject to the provisions of section fifteen of this article and section twenty, article one of this chapter;
(g) Propose rules to control uses of the parks, subject to the provisions of chapter twenty-nine-a of this code: Provided, That the director may not permit public hunting, the exploitation of minerals or the harvesting of timber for commercial purposes in any state park;
(h) Exempt designated state parks from the requirement that all payments must be deposited in a bank within twenty-four hours for amounts less than two hundred fifty dollars notwithstanding any other provision of this code to the contrary;
(i) Waive the use fee normally charged to an individual or group for one day's use of a picnic shelter or one week's use of a cabin in a state recreation area when the individual or group donates the materials and labor for the construction of the picnic shelter or cabin: Provided, That the individual or group was authorized by the director to construct the picnic shelter or cabin and that it was constructed in accordance with the authorization granted and the standards and requirements of the division pertaining to the construction. The individual or group to whom the waiver is granted may use the picnic shelter for one reserved day or the cabin for one reserved week during each calendar year until the amount of the donation equals the amount of the loss of revenue from the waiver or until the individual dies or the group ceases to exist, whichever first occurs. The waiver is not transferable. The director shall permit free use of picnic shelters or cabins to individuals or groups who have contributed materials and labor for construction of picnic shelters or cabins prior to the effective date of this section. The director shall propose a legislative rule for promulgation in accordance with the provisions of article three, chapter twenty-nine-a of this code governing the free use of picnic shelters or cabins provided for in this section, the eligibility for free use, the determination of the value of the donations of labor and materials, the appropriate definitions of a group and the maximum time limit for the use;
(j) Provide within the parks a market for West Virginia arts, crafts and products, which shall permit gift shops within the parks to offer for sale items purchased on the open market from local artists, artisans, craftsmen and suppliers and local or regional crafts cooperatives;
(k) Provide that reservations for reservable campsites may be made, upon two days advance notice, for any date for which space is available within a state park or recreational area managed by the parks and recreation section;
(l) Provide that reservations for all state parks and recreational areas managed by the parks and recreation section of the division may be made by use of a valid credit card; and
(m) Develop a plan to establish a centralized computer reservation system for all state parks and recreational areas managed by the parks and recreation section and to implement the plan as funds become available.
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 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 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 does 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 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) 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 seven, article one, chapter five-h 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 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.
ARTICLE 25. AUTHORIZED GAMING FACILITY.
§29-25-22. State gaming fun; allocation of net income.
(a) There is hereby created a The special fund in the state treasury which shall be designated and known as the "state gaming fund" is continued. All revenues received from licenses and applicants under this article, all gross terminal income received by the commission under section twenty of this article and all tax revenues from the tax imposed under section twenty-one of this article shall be deposited with the state treasurer and placed in the state gaming fund. The fund shall be an interest bearing account with interest to be credited to and deposited in the state gaming fund.
(b) All expenses of the commission shall be paid from the state gaming fund, including reimbursement of the state police for activities performed at the request of the commission in connection with background investigations or enforcement activities pursuant to this article. At no time may the commission's expenses under this article exceed fifteen percent of the total of the annual revenue received from the licensee under this article, including all license fees, taxes or other amounts required to be deposited in the state gaming fund.
(c) The balance of the state gaming fund shall be divided as follows:
(1) Eighty-nine percent of the state gaming fund net income shall be paid into the general revenue fund to be appropriated by the Legislature;
(2) The tourism promotion fund established in section nine, article one, chapter five-b seven, article one, chapter five-h of this code shall receive three percent of the state gaming fund net income;
(3) The county where the gaming facility is located shall receive four percent of the state gaming fund net income;
(4) The municipality where the gaming facility is located or the municipality closest to the gaming facility by paved road access shall receive two percent of the state gaming fund net income; and
(5) The municipalities within the county where the gaming facility is located, except for the municipality receiving funds under subdivision (4) of this subsection, shall receive equal shares of two percent of the state gaming fund net income.




NOTE: The purpose of this bill is to create a separate Division of Tourism within the Bureau of Commerce and to authorize the Governor to appoint a Director of the Division. The bill also transfers many of the Commission's duties to the Director and provides for the transfer of certain funds, employees and property from the West Virginia Development Office to the Division of Tourism.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

Chapter 5H is new; therefore, strike-throughs and underscoring have been omitted.