HB2718 HFIN FBM

HOUSE COMMITTEE ON FINANCE

FLOOR BOOK MEMO

COM. SUB. FOR HOUSE BILL 2718 (RACETRACK MODERNIZATION FUND)

Sponsors:   Delegates Gearheart, Butler, Hamrick, Howell, Householder, Westfall, Miller, Border, Cooper, Hanshaw and Ellington

Attorney:    McO   / Assistant:

Date:           February 21, 2015

Title:           OK

Fiscal Note:          No

Code:          §29-22A-10g (new)

Purpose: The bill as introduced would close the Licensed Racetrack Modernization Fund July 1, 2016, and direct the transfer of any remaining balance in the fund to the State Road Fund. For the fiscal year beginning July 1, 2015, the bill would also direct the Lottery Commission to transfer up to $9 million from any surplus allocation as calculated by the Commission from those amounts deducted from racetrack video lottery gross terminal income for its actual administrative costs and expenses that would otherwise be deposited into the Licensed Racetrack Modernization Fund.

COMMITTEE ACTION: The bill was reported as a Committee Substitute that would not adopt the approach of the bill as introduced. Instead the bill would suspend the deduction of any money for the Licensed Racetrack Modernization Fund during the fiscal year that begins July 1, 2015. During that fiscal year, the Lottery Commission would be directed to deduct a total of $9 million dollars from the racetrack video lottery revenues known as gross terminal income and allocate and deposit that money as follows:

          $6 million into the state road fund for maintenance, contract paving, and secondary road maintenance purposes;

          $1 million for the Title XIX Aged and Disabled Waiver program;

          $1 million for Health Right Free Clinics; and

          $1 million for the Substance Abuse Continuum of Care program.

The bill would create a new special revenue fund under the administration of the Secretary of the Department of Health and Human Resources to receive the deposits for expenditure for the Health Right Free Clinics and the Substance Abuse Continuum of Care programs

Finally, the racetracks would have an additional year to access any moneys available to them in the Licensed Racetrack Modernization Fund.

Effective Date:     Regular