(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:
(1) 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 the deduction is the net terminal
income. The amount deducted for administrative costs and expenses
of the commission may not exceed four percent of gross terminal
income: Provided, That any amounts deducted by the commission for
its actual costs and expenses that exceeds its actual costs and
expenses shall be deposited into the State Lottery Fund.
For the
fiscal years ending June 30,2011 through June 30, 2020, the term
"actual costs and expenses" may include transfers of$ up to $10
million in surplus allocations for each fiscal year, as calculated
by the commission when it has closed its books for the fiscal year,
to the Licensed Racetrack Modernization Fund created by
subdivision(2), subsection (b) of this section. For all fiscal
years beginning on or after July 1, 2001, the commission shall not
receive an amount of gross terminal income in excess of the amount
of gross terminal income received during the fiscal year ending on
June 30, 2001, but four percent of any amount of gross terminal
income received in excess of the amount of gross terminal income
received during the fiscal year ending on June 30, 2001, shall be
deposited into the fund established in section eighteen-a, article
twenty-two of this chapter; and
(2) A Licensed Racetrack Modernization Fund is created within
the lottery fund. For all fiscal years beginning on or after July 1, 2011, and ending with the fiscal year beginning July 1, 2020,
the commission shall deposit such amounts as are available
according to subdivision (1), subsection (b) of this section into
a separate facility modernization account maintained within the
Licensed Racetrack Modernization Fund for each racetrack. Each
racetrack's share of each year's deposit shall be calculated in the
same ratio as each racetrack's apportioned contribution to the four
percent administrative costs and expenses allowance provided for in
subdivision (1), subsection (b) of this section for that year. For
each two dollars expended by a licensed racetrack for facility
modernization improvements at the racetrack, having a useful life
of three or more years and placed in service after July 1, 2011,
the licensed racetrack shall receive $1 in recoupment from its
facility modernization account. If the licensed racetrack's
facility modernization account contains a balance in any fiscal
year, the unexpended balance from that fiscal year will be
available for matching for one additional fiscal year, after which
time, the remaining unused balance carried forward shall revert to
the lottery fund. For purposes of this section, the term "facility
modernization improvements" includes acquisitions of new and unused
video lottery terminals and related equipment. Video lottery
terminals financed through the recoupment provided in this
subdivision must be retained by the licensee in its West Virginia
licensed location for a period of not less than five years from the
date of initial installation.
(c) The amount resulting after the deductions required by
subsection (b) of this section constitutes net terminal income that
shall be divided as set out in this subsection. For all fiscal
years beginning on or after July 1, 2001, any amount of net
terminal income received in excess of the amount of net terminal
income received during the fiscal year ending on June 30, 2001,
shall be divided as set out in section ten-b of this article. The
licensed racetrack's share 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 State Lottery Fund as
provided in section ten-a of this article;
(2) Until July 1, 2005, 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, on and after July 1,
2005, the rate shall be seven percent of net terminal income;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income: Provided,
That:
(A) Beginning July 1, 1999, and thereafter, any amount in excess of the two percent received during the fiscal year 1999 by
a county in which a racetrack is located that has participated in
the West Virginia Thoroughbred Development Fund since on or before
January 1, 1999 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 July 1, 1999, and thereafter, any amount in
excess of the two percent received during the fiscal year 1999 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 January 1, 1999 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 other county other than a county
described in paragraph (A) or (B) of this proviso;
(4) 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 of said article shall receive an equal
share of a total of not less than one and one-half percent of the
net terminal income;
(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-six and one-half percent of
net terminal income.
(8)(A) 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: Provided, That for the
fiscal year beginning July 1, 2003, the tourism commission shall
transfer from the Tourism Promotion Fund $5 million of the three
percent of the net terminal income described in this section and
section ten-b of this article into the fund administered by the
West Virginia Economic Development Authority pursuant to section
seven, article fifteen, chapter thirty-one of this code, $5 million
into the Capitol Renovation and Improvement Fund administered by the Department of Administration pursuant to section six, article
four, chapter five-a of this code and $5 million into the Tax
Reduction and Federal Funding Increased Compliance Fund; and
(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, for each fiscal year beginning after
June 30, 2004, this three percent of net terminal income and the
three percent of net terminal income described in paragraph (B),
subdivision (8), subsection (a), section ten-b of this article
shall be distributed as provided in this paragraph as follows:
(i) 1.375 percent of the total amount of net terminal income
described in this section and in section ten-b of this article
shall be deposited into the Tourism Promotion Fund created under
section twelve, article two, chapter five-b of this code;
(ii) 0.375 percent of the total amount of net terminal income
described in this section and in section ten-b of this article
shall be deposited into the Development Office Promotion Fund
created under section three-b, article two, chapter five-b of this
code;
(iii) 0.5 percent of the total amount of net terminal income
described in this section and in section ten-b of this article
shall be deposited into the Research Challenge Fund created under
section ten, article one-b, chapter eighteen-b of this code;
(iv) 0.6875 percent of the total amount of net terminal income
described in this section and in section ten-b of this article
shall be deposited into the Capitol Renovation and Improvement Fund administered by the Department of Administration pursuant to
section six, article four, chapter five-a of this code; and
(v) 0.0625 percent of the total amount of net terminal income
described in this section and in section ten-b of this article
shall be deposited into the 2004 Capitol Complex Parking Garage
Fund administered by the Department of Administration pursuant to
section five-a, article four, chapter five-a of this code;
(9)(A) On and after July 1, 2005, seven percent of net
terminal income shall be deposited into the Workers' Compensation
Debt Reduction Fund created in section five, article two-d, chapter
twenty-three of this code: Provided, That in any fiscal year when
the amount of money generated by this subdivision totals $11
million, all subsequent distributions under this subdivision shall
be deposited in the special fund established by the licensee and
used for the payment of regular purses in addition to the other
amounts provided in article twenty-three, chapter nineteen of this
code;
(B) The deposit of the seven percent of net terminal income
into the Worker's Compensation Debt Reduction Fund pursuant to this
subdivision shall expire and not be imposed with respect to these
funds and shall be deposited in the special fund established by the
licensee and used for payment of regular purses in addition to the
other amounts provided in article twenty-three, chapter nineteen of
this code, on and after the first day of the month following the
month in which the Governor certifies to the Legislature that: (i) The revenue bonds issued pursuant to article two-d, chapter
twenty-three of this code, have been retired or payment of the debt
service provided for; and (ii) that an independent certified
actuary has determined that the unfunded liability of the old fund,
as defined in chapter twenty-three of this code, has been paid or
provided for in its entirety; and
(10) The remaining one percent of net terminal income shall be
deposited as follows:
(A) For the fiscal year beginning July 1, 2003, 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 $20,000 of the one percent of net terminal income
provided 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, $100,000 of the one
percent of net terminal income provided 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: Provided, however, That $500,000 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; and 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.
(B) For each fiscal year beginning after June 30, 2004:
(i) 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; and
(ii) The remainder of the one percent of net terminal income
and all of the one percent of net terminal income described in
paragraph (B), subdivision (9), subsection (a), section ten-b of
this article shall be distributed as follows: The net terminal
income shall be deposited in equal amounts into the Capitol Dome
and Capitol Improvements Fund created under section two, article
four, chapter five-a of this code and the Cultural Facilities and
Capitol Resources Matching Grant Program Fund created under section
three, article one, chapter twenty-nine of this code until a total
of $1,500,000 is deposited into the Cultural Facilities and Capitol
Resources Matching Grant Program Fund; thereafter, the remainder
shall be deposited into the Capitol Dome and Capitol Improvements
Fund.
(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. The 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 shall 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 the 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 shall authorize all third
parties in possession or in control of the accounts or records to
allow examination of any of those accounts or records by the
commission.
Note: WV Code updated with legislation passed through the 2012 1st Special Session
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