ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 197
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Passed March 13, 2004; in effect ninety days from passage.]
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AN ACT to amend the code of West Virginia, 1931, as amended, by
adding thereto three new sections, designated §5A-4-5a, §5A-4-
6 and §5A-4-7; to amend and reenact §5B-2-12 of said code; and
to amend and reenact §29-22A-10 and §29-22A-10b of said code,
all relating generally to distribution of net terminal income
of racetrack video lottery terminals for funding purposes;
creating a fund to be used for the construction and
maintenance of a parking garage; distributing net terminal
income to funds for the construction and maintenance of
parking garages, to the capitol dome and improvements fund, to
the cultural facilities and capitol resources matching grant
program fund, to the capitol renovation and improvement fund,
to the tourism promotion fund and to purposes determined by
appropriation in the state budget; creating a fund for
renovations and improvements of the existing state capitol
building and the capitol complex; and prohibiting members of the tourism commission from participating in the discussion
of, or action upon, an application for or an award of any
grant in which the member has a direct financial interest.
Be it enacted by the Legislature of West Virginia:
That the code of West Virginia, 1931, as amended, be amended
by adding thereto three new sections, designated §5A-4-5a, §5A-4-6
and §5A-4-7; that §5B-2-12 of said code be amended and reenacted;
and that §29-22A-10 and §29-22A-10b of said code be amended and
reenacted, all to read as follows:
CHAPTER 5A. DEPARTMENT OF ADMINISTRATION.
ARTICLE 4. GENERAL SERVICES DIVISION.
§5A-4-5a. Construction of parking garage for general public;
creation of fund.
(a) It is the intent of the Legislature to provide a parking
facility for the general public and to direct the secretary of the
department of administration to plan and construct a parking garage
at the state capitol complex that will provide sufficient and
additional parking exclusively for the general public.
(b) There is created the state treasury, to be administered by
the department of administration, a special fund to be named the
"2004 capitol complex parking garage fund" in which shall be
deposited funds that are appropriated and funds from other sources
to be used for the construction and maintenance of a parking garage
on or adjacent to the state capitol complex.
§5A-4-6. Distribution of funds.
Notwithstanding any other provision of this code to the
contrary, in each fiscal year beginning after the thirtieth day of
June, two thousand four, the total amount of the remainder of the
one percent of net terminal income described in subparagraph (ii),
paragraph (B), subdivision (9), subsection (c), section ten,
article twenty-two-a, chapter twenty-nine of this code and all of
the one percent of net terminal income described in subdivision
(9), subsection (a), section ten-b of said article shall be
distributed as follows:
Equal amounts of the total shall be deposited 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 until a total of one million five
hundred thousand dollars is deposited into the cultural facilities
and capitol resources matching grant program fund; thereafter, the
remainder shall be deposited into the capitol dome and improvements
fund.
§5A-4-7. Renovation and improvement of capitol building and
capitol complex.
(a) It is the intent of the Legislature to provide renovation
and improvement of the existing state capitol building and the
capitol complex and to direct the secretary of the department of
administration to plan and make renovations and improvements of the
existing state capitol building and the capitol complex for the
purpose of reversing deterioration to existing facilities, securing the safety of the general public and state employees, promoting
efficiency of governmental operations and to enhance tourism in the
state.
(b) There is created the state treasury to be administered by
the department of administration a special fund to be named the
"capitol renovation and improvement fund" in which shall be
deposited funds that are appropriated and funds from other sources
to be used for renovations and improvements of the existing state
capitol building and the capitol complex.
CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.
ARTICLE 2. WEST VIRGINIA DEVELOPMENT OFFICE.
§5B-2-12. Tourism promotion fund continued; use of funds.
There is hereby continued in the state treasury the special
revenue fund known as the "tourism promotion fund" created under
prior enactment of section nine, article one of this chapter.
(a) 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:
Provided, That no less than twenty
percent of these funds 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, or
any combination thereof.
(b) 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 commission. The funds shall be made available to
these districts beginning the first day of July, one thousand nine
hundred ninety-five, according to legislative rules authorized for
promulgation by the tourism commission.
(c) All advertising expenditures over twenty-five thousand
dollars from the tourism promotion fund require prior approval by
recorded vote of the commission. No member of the commission or of
any committee created by the commission to evaluate applications
for advertising or other grants may participate in the discussion
of, or action upon, an application for or an award of any grant in
which the member has a direct financial interest.
(d) Notwithstanding any other provision of this code to the
contrary:
(1) In the fiscal year beginning the first day of July, two
thousand four, the total amount of the three percent of net
terminal income described in paragraph (B), subdivision (8),
subsection (c), section ten, article twenty-two-a, chapter twenty-
nine of this code and the three percent of net terminal income
described in paragraph (B), subdivision (9), subsection (a),
section ten-b of said article shall be distributed as follows:
(A) Not more than six million dollars shall be deposited in
the tourism promotion fund;
(B) Not more than five hundred thousand dollars shall be
deposited in the state treasury in a special fund of the department of administration, created under section five-a, article four,
chapter five-a of this code to be used for construction and
maintenance of a parking garage on or adjacent to the state capitol
complex;
(C) Not more than five million five hundred thousand dollars
shall be deposited in the state treasury in a special fund of the
department of administration, created under section seven, article
four, chapter five-a of this code to be used for renovation and
improvement of the existing state capitol building and the capitol
complex; and
(D) The remainder of the three percent of net terminal income
shall be available only upon appropriation by the Legislature as
part of the state budget.
(2) In each fiscal year beginning after the thirtieth day of
June, two thousand five, the total amount of the three percent of
net terminal income described in paragraph (B), subdivision (8),
subsection (c), section ten, article twenty-two-a, chapter twenty-
nine of this code and the three percent of net terminal income
described in paragraph (B), subdivision (9), subsection (a),
section ten-b of said article shall be distributed as follows:
(A) Not more than eleven million dollars shall be deposited in
the tourism promotion fund;
(B) Not more than five hundred thousand dollars shall be
deposited in the state treasury in a special fund of the department
of administration, created under section five-a, article four,
chapter five-a of this code to be used for construction and maintenance of a parking garage on or adjacent to the state capitol
complex;
(C) Not more than five million five hundred thousand dollars
shall be deposited in the state treasury in a special fund of the
department of administration, created under section seven, article
four, chapter five-a of this code to be used for renovation and
improvement of the existing state capitol building and the capitol
complex; and
(D) The remainder of the three percent of net terminal income
shall be available only upon appropriation by the Legislature as
part of the state budget.
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
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 all fiscal years beginning on or after the
first day of July, two thousand one, 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
the thirtieth day of June, two thousand one, 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 the thirtieth day of June, two thousand one, shall be
deposited into the fund established in section eighteen-a, article
twenty-two of this chapter.
(c) Net terminal income shall be divided as set out in this
subsection. For all fiscal years beginning on or after the first
day of July, two thousand one, any amount of net terminal income
received in excess of the amount of net terminal income received
during the fiscal year ending on the thirtieth day of June, two
thousand one, 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) 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 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) 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, the 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) 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 subdivision;
(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 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:
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 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
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)(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 the first day of July, two thousand three,
the tourism commission shall transfer from the tourism promotion fund no more than five million dollars of the three percent of the
net terminal income into the fund administered by the West Virginia
economic development authority pursuant to section seven, article
fifteen, chapter thirty-one of this code; and
(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, for each fiscal year beginning after
the thirtieth day of June, two thousand four, this three percent of
net terminal income shall be distributed pursuant to the provisions
of subsection (d), section twelve, article two, chapter five-b of
this code; and
(9) The remaining one percent of net terminal income shall be
deposited as follows:
(A) For the fiscal year beginning the first day of July, two
thousand three the, veterans memorial program shall receive that
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:
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; and 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 the thirtieth day of
June, two thousand four:
(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
shall be distributed pursuant to the provisions of section six,
article four, chapter five-a 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. 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.
§29-22A-10b. Distribution of excess net terminal income.
(a) For all years beginning on or after the first day of July,
two thousand one, any amount of net terminal income generated
annually by a licensed racetrack in excess of the amount of net
terminal income generated by that licensed racetrack during the
fiscal year ending on the thirtieth day of June, two thousand one,
shall be divided as follows:
(1) The commission shall receive forty-one percent of net
terminal income, which the commission shall deposit in the state
excess lottery revenue fund created in section eighteen-a, article
twenty-two of this chapter;
(2) Eight 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) Any amount by which the total amount under this section
and subdivision (3), subsection (c), section ten of this article is
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, the 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) Any amount by which the total amount under this section
and subdivision (3), subsection (c), section ten of this article is 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-two 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:
Provided, That for each fiscal
year beginning after the thirtieth day of June, two thousand four,
this three percent of net terminal income shall be distributed
pursuant to the provisions of subsection (d), section twelve,
article two, chapter five-b of this code; and
(9)(A) One percent of the 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; and
(B) Notwithstanding any provision of paragraph (A) of this subdivision to the contrary, for each fiscal year beginning after
the thirtieth day of June, two thousand four, this one percent of
net terminal income shall be distributed pursuant to the provisions
of section six, article four, chapter five-a of this code..
(b) The commission may establish orderly and effective
procedures for the collection and distribution of funds under this
section in accordance with the provisions of this section and
section ten of this article.