FISCAL NOTE
FUND(S):
Lottery Fund and Excess Lottery Revenue Fund
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
In 2004, as part of the Governor's workers compensation reform legislation, W.Va. Code 29-22A-10 and 29-22A-10b were amended to reduce the amount of racetrack video lottery net terminal income available to pay racing purses. The money was redirected to the new Workers Compensation Debt Reduction Fund and was capped at $11 million per year.
By amending W.Va. Code 29-22A-(c)(9)(A), the bill reverses the Legislature's 2004 actions and reverts the $11 million annually to pay racing purses in addition to the money for racing purses now received from W.Va. Code 29-22A-10(c)(2)and 29-22A-10b(a)(2).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-11,000,000 |
-11,000,000 |
Explanation of above estimates (including long-range effect):
The Lottery has already made the $11 million transfer to the Workers Compensation Debt Reduction Fund for FY 2010. Beginning in FY 2011, the State would give up the $11,000,000 it now receives for Workers Compensation Debt Reduction Fund, and the $11,000,000 would instead go to private persons in the form of racing purses at pari-mutuel racetracks.
In W.Va. Code 29-22C-27(b)(2)and (c)(2), the bill would divide the the 2.5% share of table gaming revenue differently. Currently, the 2.5% share is divided equally between the two horse tracks and the two dog tracks. TEH bill would pay the 2.5% share pro rata to the two horse tracks and the two dog tracks, in essence using 2.5% of a track's revenue from table games for that track's racing purses.
Memorandum
The bill amends sections in Chapter 19, Article 23, the Horse and Dog Racing law administered by the State Racing Commission. The bill also amends Chapter 29, Articles 22A, the Racetrack Video Lottery Act, and Chapter 29, Article 22C, the Racetrack Table Games Act, which are each administered by the West Virginia Lottery. This fiscal note only deals with changes to the two lottery law sections and not with the racing law changes.
Person submitting Fiscal Note: John Melton
Email Address: jmelton@wvlottery.com