Introduced Version
Senate Bill 455 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 455
(By Senators Green, Edgell, Fitzsimmons, D. Hall and Yost)
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[Introduced March 6, 2013; referred to the Committee on the
Judiciary; and then to the Committee on Finance .]
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A BILL to amend and reenact §19-23-6, §19-23-7, §19-23-9 and §19-
23-12b of the Code of West Virginia, 1931, as amended; to
amend and reenact §29-22A-3, §29-22A-10 and §29-22A-10b of
said code; and to amend and reenact §29-22C-8, §29-22C-10 and
§29-22C-26 of said code, all relating to providing that within
the minimum and maximum set by the commission, the number of
horse races or dog races to be held on a racing day be set by
the licensee; providing for use of funds paid to Horsemen's
Benevolent and Protective Association from special fund for
payment of regular purses; decreasing the number of dates
required for a horse or dog race meeting license application;
decreasing the number of live racing dates required for
receiving telecasts and accepting wagers on horse and dog race
meetings; decreasing the number of dates on which live racing
must be conducted by racetrack table games licensee; providing for distribution of certain amounts of net terminal income
derived from racetrack video lottery terminals; providing for
annual racetrack table games license renewal fee; and
decreasing percentage of table games privilege tax.
Be it enacted by the Legislature of West Virginia:
That §19-23-6, §19-23-7, §19-23-9 and §19-23-12b of the Code
of West Virginia, 1931, as amended, be amended and reenacted; that
§29-22A-3, §29-22A-10 and §29-22A-10b of said code be amended and
reenacted; and that §29-22C-8, §29-22C-10 and §29-22C-26 of said
code be amended and reenacted, all to read as follows:
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-6. Powers and authority of Racing Commission.
The Racing Commission has full jurisdiction over and shall
supervise all horse race meetings, all dog race meetings and all
persons involved in the holding or conducting of horse or dog race
meetings and, in this regard, it has plenary power and authority:
(1) To investigate applicants and determine the eligibility of
the applicants for a license or permit or construction permit under
the provisions of this article;
(2) To fix, from time to time, the annual fee to be paid to
the Racing Commission for any permit required under the provisions
of section two of this article;
(3) To promulgate reasonable rules implementing and making
effective the provisions of this article and the powers and
authority conferred and the duties imposed upon the Racing
Commission under the provisions of this article, including, but not
limited to, reasonable rules under which all horse races, dog
races, horse race meetings and dog race meetings shall be held and
conducted, all of which reasonable rules shall be promulgated in
accordance with the provisions of article three, chapter twenty-
nine-a of this code except that the Racing Commission shall
promulgate separate rules, in accordance with article three,
chapter twenty-nine-a, pertaining to the kinds of legal combination
wagers which may be placed in connection with the pari-mutuel
system of wagering authorized by this article;
(4) To register colors and assumed names and to fix, from time
to time, the annual fee to be paid to the Racing Commission for any
such registration;
(5) To fix and regulate the minimum purse to be offered during
any horse or dog race meeting;
(6) To fix a minimum and a maximum number of horse races or
dog races to be held on any respective racing day: Provided, That
within the parameters established, the licensee or permit holder
may set the actual number of races to be held on any respective
racing day;
(7) To enter the office, horse racetrack, dog racetrack, kennel, facilities and other places of business of any licensee to
determine whether the provisions of this article and its reasonable
rules are being complied with, and for this purpose, the Racing
Commission, its executive director, representatives and employees
may visit, investigate and have free access to any such office,
horse racetrack, dog racetrack, kennel, facilities and other places
of business;
(8) To investigate alleged violations of the provisions of
this article, its reasonable rules, orders and final decisions and
to take appropriate disciplinary action against any licensee or
permit holder or construction permit holder for a violation or
institute appropriate legal action for enforcement or take
disciplinary action and institute legal action;
(9) By reasonable rules, to authorize stewards, starters and
other racing officials to impose reasonable fines or other
sanctions upon a person connected with or involved in any horse or
dog racing or any horse or dog race meeting and to authorize
stewards to rule off the grounds of any horse or dog racetrack any
tout, bookmaker or other undesirable individual determined inimical
to the best interests of horse and dog racing or the pari-mutuel
system of wagering in connection therewith;
(10) To require at any time the removal of any racing official
or racing employee of any licensee for the violation of any
provision of this article, any reasonable rule of the Racing Commission or for any fraudulent practice;
(11) To acquire, establish, maintain and operate, or to
provide by contract for the maintenance and operation of, a testing
laboratory and related facilities for the purpose of conducting
saliva, urine and other tests on the horse or dog or horses or dogs
run or to be run in any horse or dog race meeting and to purchase
all equipment and supplies considered necessary or desirable in
connection with the acquisition, establishment, maintenance and
operation of any testing laboratory and related facilities and all
such tests;
(12) To hold up, in any disputed horse or dog race, the
payment of any purse pending a final determination of the results
thereof;
(13) To require each licensee to file an annual balance sheet
and profit and loss statement pertaining to the licensee's horse or
dog racing activities in this state together with a list of each
licensee's stockholders or other persons having any beneficial
interest in the horse or dog racing activities of the licensee;
(14) To issue subpoenas for the attendance of witnesses and
subpoenas duces tecum for the production of any books, records and
other pertinent documents and to administer oaths and affirmations
to such witnesses, whenever, in the judgment of the Racing
Commission, it is necessary to do so for the effective discharge of
its duties under the provisions of this article;
(15) To keep accurate and complete records of its proceedings
and to certify the same as may be appropriate;
(16) To take any other action that may be reasonable or
appropriate to effectuate the provisions of this article and its
reasonable rules;
(17) To provide breeders' awards, purse supplements and moneys
for capital improvements at racetracks in compliance with section
thirteen-b of this article; and
(18) To mediate on site, upon request of a party, all disputes
existing between the racetrack licensees located in this state and
representatives of a majority of the horse owners and trainers
licensed at the track which threaten to disrupt any scheduled
racing event or events. The Racing Commission shall, upon the
request of a party, mediate on site all disputes existing between
racetrack licensees and representatives of pari-mutuel clerks which
threaten to disrupt any scheduled racing event or events. When a
request for mediation is made, the commission shall designate from
among its members one person to act as mediator in each dispute
that arises. Each opposing party involved in any dispute shall
negotiate in good faith with the goal of reaching a fair and mutual
resolution. The mediator may issue recommendations designed to
assist each side toward reaching a fair compromise. No owner or
operator or any horse owner or trainer or any pari-mutuel clerk
licensed at the track is required to abide by any recommendation made by any mediator acting pursuant to this subsection.
The Racing Commission shall not interfere in the internal
business or internal affairs of any licensee.
§19-23-7. Application for license; forms; time for filing;
disclosure required; verification; bond;
application for permit.
(a) Any racing association desiring to hold or conduct a horse
or dog race meeting, where the pari-mutuel system of wagering is
permitted and conducted, during any calendar year, shall file with
the Racing Commission an application for a license to hold or
conduct such horse or dog race meeting. A separate application
shall be filed for each separate license sought for each horse or
dog race meeting which such applicant proposes to hold or conduct.
The Racing Commission shall prescribe blank forms to be used in
making such application. Such application shall be filed on or
before a day to be fixed by the Racing Commission and shall
disclose, but not be limited to, the following:
(1) If the applicant be an individual, the full name and
address of the applicant;
(2) If the applicant be a partnership, firm or association,
the full name and address of each partner or member thereof, the
name of the partnership, firm or association and its post-office
address;
(3) If the applicant be a corporation, its name, the state of its incorporation, its post-office address, the full name and
address of each officer and director thereof, and if a foreign
corporation, whether it is qualified to do business in this state;
(4) The dates, totaling not less than two hundred one hundred
fifty, such applicant intends to hold or conduct such horse or dog
race meeting (which may be on any day including Sundays);
(5) The location of the horse or dog racetrack, place or
enclosure where such applicant proposes to hold or conduct such
horse or dog race meeting;
(6) Whether the applicant, any partner, member, officer or
director has previously applied for a license under the provisions
of this article or for a similar license in this or any other
state, and if so, whether such license was issued or refused, and,
if issued, whether it was ever suspended or revoked; and
(7) Such other information as the Racing Commission may
reasonably require which may include information relating to any
criminal record of the applicant, if an individual, or of each
partner or member, if a partnership, firm or association, or of
each officer and director, if a corporation.
(b) Such application shall be verified by the oath or
affirmation of the applicant for such license, if an individual, or
if the applicant is a partnership, firm, association or
corporation, by a partner, member or officer thereof, as the case
may be. When required by the Racing Commission, an applicant for a license shall also furnish evidence satisfactory to the Racing
Commission of such applicant's ability to pay all taxes due the
state, purses, salaries of officials and other expenses incident to
the horse or dog race meeting for which a license is sought. In
the event the applicant is not able to furnish such satisfactory
evidence of such applicant's ability to pay such expenses and fees,
the Racing Commission may require bond or other adequate security
before the requested license is issued.
(c) Any person desiring to obtain a permit, as required by the
provisions of section two of this article, shall make application
therefor on a form prescribed by the Racing Commission. The
application for any such permit shall be accompanied by the fee
prescribed therefor by the Racing Commission. Each applicant for
a permit shall set forth in the application such information as the
Racing Commission shall reasonably require.
§19-23-9. Pari-mutuel system of wagering authorized; licensee
authorized to deduct commissions from pari-mutuel
pools; retention of breakage; auditing; minors.
(a) The pari-mutuel system of wagering upon the results of any
horse or dog race at any horse or dog race meeting conducted or
held by any licensee is hereby authorized if, and only if, such
pari-mutuel wagering is conducted by the licensee within the
confines of the licensee's horse racetrack or dog racetrack and the
provisions of section one, article ten, chapter sixty-one of this code relating to gaming shall not apply to the pari-mutuel system
of wagering in manner and form as provided in this article at any
horse or dog race meeting within this state where horse or dog
racing is permitted for any purse by any licensee. A licensee
shall permit or conduct only the pari-mutuel system of wagering
within the confines of the licensee's racetrack at which any horse
or dog race meeting is conducted or held.
(b) A licensee is hereby expressly authorized to deduct a
commission from the pari-mutuel pools as follows:
(1) The commission deducted by any licensee from the pari-
mutuel pools on thoroughbred horse racing, except from thoroughbred
horse racing pari-mutuel pools involving what is known as multiple
betting in which the winning pari-mutuel ticket or tickets are
determined by a combination of two or more winning horses, shall
not exceed seventeen and one-fourth percent of the total of the
pari-mutuel pools for the day. Out of the commission mentioned in
this subdivision, the licensee: (i) Shall pay the pari-mutuel
pools tax provided in subsection (b), section ten of this article;
(ii) shall make a deposit into a special fund to be established by
the licensee and to be used for the payment of regular purses
offered for thoroughbred racing by the licensee, which deposits out
of pari-mutuel pools for each day during the months of January,
February, March, October, November and December shall be seven and
three hundred seventy-five one-thousandths percent of the pari-mutuel pools and which, out of pari-mutuel pools for each day
during all other months, shall be six and eight hundred seventy-
five one-thousandths percent of the pari-mutuel pools, which shall
take effect beginning fiscal year 1990; (iii) shall pay one tenth
of one percent of the pari-mutuel pools into the General Fund of
the county commission of the county in which the racetrack is
located, except if within a municipality, then to the Municipal
General Fund; and (iv) Any licensee which has participated in the
West Virginia Thoroughbred Development Fund for a period of more
than four consecutive calendar years prior to December 31, 1992,
shall make a deposit into a special fund to be established by the
Racing Commission and to be used for the payment of breeders
awards, restrictive races and stakes purses as authorized by
section thirteen-b of this article, which deposits out of pari-
mutuel pools shall, from the effective date of this section, be two
percent of the pools. The remainder of the commission shall be
retained by the licensee.
Each licensee that permits or conducts pari-mutuel wagering at
the licensee's thoroughbred horse racetrack shall annually pay
$500,000 from the special fund required by this section to be
established by the licensee for the payment of regular purses
offered for thoroughbred racing by the licensee into a special fund
established by the Racing Commission for transfer to a pension plan
established by the Racing Commission for all back stretch personnel, including, but not limited to, exercise riders,
trainers, grooms and stable forepersons licensed by the Racing
Commission to participate in horse racing in this state and their
dependents.
Each thoroughbred racetrack licensee is authorized to enter
into an agreement with its local Horsemen's Benevolent and
Protective Association under which an agreed upon percentage of up
to two percent of purses actually paid during the preceding month
may be paid to the local Horsemen's Benevolent and Protective
Association from the special fund required by this section for
their respective medical trusts for backstretch personnel and
administrative fees specifically related to such medical trusts for
backstretch personnel: Provided, That such administrative fees may
not include payments for legal actions; legal fees; lobbying
expenses; reimbursement of expenses of board members of such
associations; reimbursement for travel and meals of staff and
employees of such associations; or administrative costs, wages and
expenses incurred other than those incurred specifically in
administration of medical trusts for backstretch personnel. The
foregoing expenses set forth as ineligible administrative fees may
be paid from membership dues paid to or contributions made to a
Horsemen's Benevolent and Protective Association, or any other
lawful source.
The commission deducted by any licensee from the pari-mutuel pools on thoroughbred horse racing involving what is known as
multiple betting in which the winning pari-mutuel ticket or tickets
are determined by a combination of two winning horses shall not
exceed nineteen percent and by a combination of three or more
winning horses shall not exceed twenty-five percent of the total of
such pari-mutuel pools for the day. Out of the commission, as is
mentioned in this paragraph, the licensee: (i) Shall pay the pari-
mutuel pools tax provided in subsection (b), section ten of this
article; (ii) shall make a deposit into a special fund to be
established by the licensee and to be used for the payment of
regular purses offered for thoroughbred racing by the licensee,
which deposits out of pari-mutuel pools for each day during the
months of January, February, March, October, November and December,
for pools involving a combination of two winning horses shall be
eight and twenty-five one-hundredths percent and out of pari-mutuel
pools for each day during all other months shall be seven and
seventy-five one-hundredths percent of the pari-mutuel pools, and
involving a combination of three or more winning horses for the
months of January, February, March, October, November and December
the deposits out of the fund shall be eleven and twenty-five one-
hundredths percent of the pari-mutuel pools, and which, out of
pari-mutuel pools for each day during all other months, shall be
ten and seventy-five one-hundredths percent of the pari-mutuel
pools; (iii) shall pay one tenth of one percent of the pari-mutuel pools into the General Fund of the county commission of the county
in which the racetrack is located, except if within a municipality,
then to the Municipal General Fund; and (iv) any licensee which has
participated in the West Virginia Thoroughbred Development Fund for
a period of more than four consecutive calendar years prior to
December 31, 1992, shall make a deposit into a special fund to be
established by the Racing Commission and to be used for the payment
of breeder awards, for restrictive races and stakes purses which
deposits out of pari-mutuel pools shall, from the effective date of
this section, be two percent of the pools. The remainder of the
commission shall be retained by the licensee.
The commission deducted by the licensee under this subdivision
may be reduced only by mutual agreement between the licensee and a
majority of the trainers and horse owners licensed by subsection
(a), section two of this article or their designated
representative. The reduction in licensee commissions may be for
a particular race, racing day or days or for a horse race meeting.
Fifty percent of the reduction shall be retained by the licensee
from the amounts required to be paid into the special fund
established by the licensee under the provisions of this
subdivision. The Racing Commission shall promulgate any reasonable
rules that are necessary to implement the foregoing provisions.
(2) The commission deducted by any licensee from the pari-
mutuel pools on harness racing shall not exceed seventeen and one-half percent of the total of the pari-mutuel pools for the day.
Out of the commission the licensee shall pay the pari-mutuel pools
tax provided in subsection (c), section ten of this article and
shall pay one tenth of one percent into the General Fund of the
county commission of the county in which the racetrack is located,
except if within a municipality, then to the Municipal General
Fund. The remainder of the commission shall be retained by the
licensee.
(3) The commission deducted by any licensee from the pari-
mutuel pools on dog racing, except from dog racing pari-mutuel
pools involving what is known as multiple betting in which the
winning pari-mutuel ticket or tickets are determined by a
combination of two or more winning dogs, shall not exceed sixteen
and thirty one-hundredths percent of the total of all pari-mutuel
pools for the day. The commission deducted by any licensee from
the pari-mutuel pools on dog racing involving what is known as
multiple betting in which the winning pari-mutuel ticket or tickets
are determined by a combination of two winning dogs shall not
exceed nineteen percent, by a combination of three winning dogs
shall not exceed twenty percent and by a combination of four or
more winning dogs shall not exceed twenty-one percent of the total
of such pari-mutuel pools for the day. The foregoing commissions
are in effect for the fiscal years 1990 and 1991. Thereafter, the
commission shall be at the percentages in effect prior to the effective date of this article unless the Legislature, after
review, determines otherwise. Out of the commissions, the licensee
shall pay the pari-mutuel pools tax provided in subsection (d),
section ten of this article and one tenth of one percent of such
pari-mutuel pools into the General Fund of the county commission of
the county in which the racetrack is located. In addition, out of
the commissions, if the racetrack is located within a municipality,
then the licensee shall also pay three tenths of one percent of the
pari-mutuel pools into the Municipal General Fund; or, if the
racetrack is located outside of a municipality, then the licensee
shall also pay three tenths of one percent of the pari-mutuel pools
into the State Road Fund for use by the Division of Highways in
accordance with the provisions of this subdivision. The remainder
of the commission shall be retained by the licensee.
For the purposes of this section, "municipality" means and
includes any Class I, Class II and Class III city and any Class IV
town or village incorporated as a municipal corporation under the
laws of this state prior to January 1, 1987.
Each dog racing licensee, when required by the provisions of
this subdivision to pay a percentage of its commissions to the
State Road Fund for use by the Division of Highways, shall transmit
the required funds, in such manner and at such times as the Racing
Commission shall by procedural rule direct, to the State Treasurer
for deposit in the State Treasury to the credit of the Division of Highways State Road Fund. All funds collected and received in the
State Road Fund pursuant to the provisions of this subdivision
shall be used by the Division of Highways in accordance with the
provisions of article seventeen-a, chapter seventeen of this code
for the acquisition of right-of-way for, the construction of, the
reconstruction of and the improvement or repair of any interstate
or other highway, secondary road, bridge and toll road in the
state. If on July 1, 1989, any area encompassing a dog racetrack
has incorporated as a Class I, Class II or Class III city or as a
Class IV town or village, whereas such city, town or village was
not incorporated as such on January 1, 1987, then on and after July
1, 1989, any balances in the State Road Fund existing as a result
of payments made under the provisions of this subdivision may be
used by the State Road Fund for any purpose for which other moneys
in the fund may lawfully be used and in lieu of further payments to
the State Road Fund, the licensee of a racetrack which is located
in the municipality shall thereafter pay three tenths of one
percent of the pari-mutuel pools into the General Fund of the
municipality. If no incorporation occurs before July 1, 1989, then
payments to the State Road Fund shall thereafter continue as
provided under the provisions of this subdivision.
A dog racing licensee, before deducting the commissions
authorized by this subdivision, shall give written notification to
the Racing Commission not less than thirty days prior to any change in the percentage rates for the commissions. The Racing Commission
shall prescribe blank forms for filing the notification. The
notification shall disclose the following: (A) The revised
commissions to be deducted from the pari-mutuel pools each day on
win, place and show betting and on different forms of multiple
bettings; (B) the dates to be included in the revised betting; and
(C) such other information as may be required by the Racing
Commission.
The licensee shall establish a special fund to be used only
for capital improvements or long-term debt amortization or both:
Provided, That any licensee, heretofore licensed for a period of
eight years prior to the effective date of the amendment made to
this section during the regular session of the Legislature held in
the year 1987, shall establish the special fund to be used only for
capital improvements or physical plant maintenance, or both, at the
licensee's licensed facility or at the licensee's commonly owned
racing facility located within this state. Deposits made into the
funds shall be in an amount equal to twenty-five percent of the
increased rate total over and above the applicable rate in effect
as of January 1, 1987, of the pari-mutuel pools for the day. Any
amount deposited into the funds must be expended or liability
therefor incurred within a period of two years from the date of
deposit. Any funds not expended shall be transferred immediately
into the state General Fund after expiration of the two-year period.
The licensee shall make a deposit into a special fund
established by the licensee and used for payment of regular purses
offered for dog racing, which deposits out of the licensee's
commissions for each day shall be three and seventy-five one-
hundredths percent of the pari-mutuel pools.
The licensee shall further establish a special fund to be used
exclusively for marketing and promotion programs; the funds shall
be in an amount equal to five percent over and above the applicable
rates in effect as of January 1, 1987, of the total pari-mutuel
pools for the day.
The Racing Commission shall prepare and transmit annually to
the Governor and the Legislature a report of the activities of the
Racing Commission under this subdivision. The report shall include
a statement of: The amount of commissions retained by licensees;
the amount of taxes paid to the state; the amounts paid to
municipalities, counties and the Division of Highways Dog Racing
Fund; the amounts deposited by licensees into special funds for
capital improvements or long-term debt amortization and a certified
statement of the financial condition of any licensee depositing
into the fund; the amounts paid by licensees into special funds and
used for regular purses offered for dog racing; the amounts paid by
licensees into special funds and used for marketing and promotion
programs; and such other information as the Racing Commission may consider appropriate for review.
(c) In addition to any commission, a licensee of horse race or
dog race meetings shall also be entitled to retain the legitimate
breakage, which shall be made and calculated to the dime, and from
the breakage, the licensee of a horse race meeting (excluding dog
race meetings), shall deposit daily fifty percent of the total of
the breakage retained by the licensee into the special fund created
pursuant to the provisions of subdivision (1), subsection (b) of
this section for the payment of regular purses.
(d) The director of audit, and any other Auditors employed by
the Racing Commission who are also certified public accountants or
experienced public accountants, shall have free access to the space
or enclosure where the pari-mutuel system of wagering is conducted
or calculated at any horse or dog race meeting for the purpose of
ascertaining whether or not the licensee is deducting and retaining
only a commission as provided in this section and is otherwise
complying with the provisions of this section. They shall also,
for the same purposes only, have full and free access to all
records and papers pertaining to the pari-mutuel system of wagering
and shall report to the Racing Commission in writing, under oath,
whether or not the licensee has deducted and retained any
commission in excess of that permitted under the provisions of this
section or has otherwise failed to comply with the provisions of
this section.
(e) No licensee shall permit or allow any individual under the
age of eighteen years to wager at any horse or dog racetrack,
knowing or having reason to believe that the individual is under
the age of eighteen years.
(f) Notwithstanding the foregoing provisions of subdivision
(1), subsection (b) of this section, to the contrary, a
thoroughbred licensee qualifying for and paying the alternate
reduced tax on pari-mutuel pools provided in section ten of this
article shall distribute the commission authorized to be deducted
by subdivision (1), subsection (b) of this section as follows: (i)
The licensee shall pay the alternate reduced tax provided in
section ten of this article; (ii) the licensee shall pay one tenth
of one percent of the pari-mutuel pools into the General Fund of
the county commission of the county in which the racetrack is
located, except if within a municipality, then to the Municipal
General Fund; (iii) the licensee shall pay one half of the
remainder of the commission into the special fund established by
the licensee and to be used for the payment of regular purses
offered for thoroughbred racing by the licensee; and (iv) the
licensee shall retain the amount remaining after making the
payments required in this subsection.
(g) Each kennel which provides or races dogs owned or leased
by others shall furnish to the commission a surety bond in an
amount to be determined by the commission to secure the payment to the owners or lessees of the dogs the portion of any purse owed to
the owner or lessee.
§19-23-12b. Televised racing days; merging of pari-mutuel wagering
pools.
(a) For the purposes of this section:
(1) "Televised racing day" means a calendar day, assigned by
the commission, at a licensed racetrack on which pari-mutuel
betting is conducted on horse or dog races run at other racetracks
in this state or at racetracks outside of this state which are
broadcast by television at a licensed racetrack and which day or
days have had the prior written approval of the representative of
the majority of the owners and trainers who hold permits required
by section two of this article; and
(2) "Host racing association" means any person who, pursuant
to a license or other permission granted by the host governmental
entity, conducts the horse or dog race upon which wagers are
placed.
(b) A licensee conducting not less than two hundred twenty one
hundred fifty live racing dates for each horse or dog race meeting
may, with the prior approval of the state Racing Commission,
contract with any legal wagering entity in this state or in any
other governmental jurisdiction to receive telecasts and accept
wagers on races conducted by the legal wagering entity: Provided,
That at those thoroughbred racetracks the licensee, in applying for racing dates, shall apply for not less than two hundred ten one
hundred fifty live racing dates for each horse race meeting:
Provided, however, That at those thoroughbred racetracks that have
participated in the West Virginia Thoroughbred Development Fund for
a period of more than four consecutive calendar years prior to
December 31, 1992, the licensee may apply for not less than one
hundred fifty-nine fifty live racing dates during the calendar year
1997. If, thereafter, for reasons beyond the licensee's control,
related to adverse weather conditions, unforeseen casualty
occurrences or a shortage of thoroughbred horses eligible to
compete for purses, the licensee concludes that this number of
racing days cannot be attained, the licensee may file a request
with the Racing Commission to reduce the authorized live racing
days. Upon receipt of the request the Racing Commission shall
within seventy-two hours of the receipt of the request notify the
licensee and the representative of a majority of the owners and
trainers at the requesting track and the representative of the
majority of the mutuel clerks at the requesting track that such
request has been received and that if no objection to the request
is received within ten days of the notification the request will be
approved: Provided further, That the commission shall give
consideration to whether there existed available unscheduled
potential live racing dates following the adverse weather or
casualty and prior to the end of the race meeting which could be used as new live racing dates in order to maintain the full live
racing schedule previously approved by the Racing Commission. If
an objection is received by the commission within the time limits,
the commission shall, within thirty days of receipt of such
objection, set a hearing on the question of reducing racing days,
which hearing shall be conducted at a convenient place in the
county in which the requesting racetrack is located. The
commission shall hear from all parties concerned and, based upon
testimony and documentary evidence presented at the hearing, shall
determine the required number of live racing days: And provided
further, That the commission shall not reduce the number of live
racing days below one hundred eighty-five fifty days for a horse
race meeting unless the licensee requesting such reduction has:
(i) Filed with the commission a current financial statement, which
shall be subject to independent audit; and (ii) met the burden of
proving that just cause exists for such requested reduction in live
racing days. The telecasts may be received and wagers accepted at
any location authorized by the provisions of section twelve-a of
this article. The contract must receive the approval of the
representative of the majority of the owners and trainers who hold
permits required by section two of this article at the receiving
thoroughbred racetrack.
(c) The commission may allow the licensee to commingle its
wagering pools with the wagering pools of the host racing association. If the pools are commingled, the wagering at the
licensee's racetrack must be on tabulating equipment capable of
issuing pari-mutuel tickets and be electronically linked with the
equipment at the sending racetrack. Subject to the approval of the
commission, the types of betting, licensee commissions and
distribution of winnings on pari-mutuel pools of the sending
licensee racetrack are those in effect at the licensee racetrack.
Breakage for pari-mutuel pools on a televised racing day must be
calculated in accordance with the law or rules governing the
sending racetrack and must be distributed in a manner agreed to
between the licensee and the sending racetrack. For the televised
racing services it provides, the host racing association shall
receive a fee to be paid by the receiving licensee racetrack which
shall be in an amount to be agreed upon by the receiving licensee
racetrack and the host racing association.
(d) The commission may assign televised racing days at any
time. When a televised racing day is assigned, the commission
shall assign either a steward or an auditor to preside over the
televised races at the licensee racetrack.
(e) (1) From the licensee commissions authorized by subsection
(c) of this section, the licensee shall pay one tenth of one
percent of each commission into the General Fund of the county, in
which the racetrack is located and at which the wagering occurred
and there is imposed and the licensee shall pay, for each televised racing day on which the total pari-mutuel pool exceeds $100,000,
the greater of either: (i) The total of the daily license tax and
the pari-mutuel pools tax required by section ten of this article;
or (ii) a daily license tax of $1,250. For each televised racing
day on which the total pari-mutuel pool is $100,000, the licensee
shall pay a daily license tax of $500 plus an additional license
tax of $100 for each $10,000, or part thereof, that the pari-mutuel
pool exceeds $50,000, but does not exceed $100,000. The
calculation of the total pari-mutuel pool for purposes of this
subsection shall include only one half of all wagers placed at a
licensed racetrack in this state on televised races conducted at
another licensed racetrack within this state. Payments of the tax
imposed by this section are subject to the requirements of
subsection (e), section ten of this article.
(2) From the licensee commissions authorized by subsection (c)
of this section, after payments are made in accordance with the
provisions of subdivision (1) of this subsection, the licensee
shall pay, for each televised racing day, one fourth of one percent
of the total pari-mutuel pools 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 and to be
used for payments into the pension plan for all employees of the
licensed racing association.
(3) From the licensee commissions authorized by subsection (c) of this section, after payments are made in accordance with the
provisions of subdivisions (1) and (2) of this subsection,
thoroughbred licensees shall pay, one-half percent of net simulcast
income and for each televised racing day on or after July 1, 1997,
an additional five and one-half percent of net simulcast income
into the West Virginia Thoroughbred Development Fund established by
the Racing Commission according to section thirteen-b of this
article: Provided, That no licensee qualifying for the alternate
tax provisions of subsection (b), section ten of this article shall
be required to make the payments unless the licensee has
participated in the West Virginia Thoroughbred Development Fund for
a period of more than four consecutive calendar years prior to
December 31, 1992. For the purposes of this section, the term "net
simulcast income" means the total commission deducted each day by
the licensee from the pari-mutuel pools on simulcast horse or dog
races, less direct simulcast expenses, including, but not limited
to, the cost of simulcast signals, telecommunication costs and
decoder costs.
(f) After deducting the tax and other payments required by
subsection (e) of this section, the amount required to be paid
under the terms of the contract with the host racing association
and the cost of transmission, the horse racing association shall
make a deposit equal to fifty percent of the remainder into the
purse fund established under the provisions of subdivision (1), subsection (b), section nine of this article. After deducting the
tax and other payments required by subsection (e) of this section,
dog racetracks shall pay an amount equal to two tenths of one
percent of the daily simulcast pari-mutuel pool to the "West
Virginia Racing Commission Special Account-West Virginia Greyhound
Breeding Development Fund".
(g) The provisions of the "Federal Interstate Horseracing Act
of 1978", also known as Public Law 95-515, Section 3001-3007 of
Title 15, U.S. Code, as amended, controls in determining the intent
of this section.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-3. Definitions.
As used in this article:
(a) "Applicant" means any person applying for any video
lottery license or permit.
(b) "Associated equipment" means any hardware located on a
licensed racetrack's premises which is connected to the video
lottery system for the purpose of performing communication,
validation or other functions, but not including the video lottery
terminals or the communication facilities of a regulated public
utility.
(c) "Background investigation" means a security, criminal and
credit investigation of a person, as defined in this section, who has applied for a video lottery license or permit, or who has been
granted a video lottery license or permit.
(d) "Central computer," "central control computer" or "central
site system" means any central site computer provided to and
controlled by the commission to which video lottery terminals
communicate for purposes of information retrieval and terminal
activation and to disable programs.
(e) "Commission" or "state Lottery Commission" means the West
Virginia Lottery Commission created by article twenty-two of this
chapter.
(f) "Control" means the authority to direct the management and
policies of an applicant or a license or permit holder.
(g) "Costs" means the expenses incurred by the commission in
the testing and examination of video lottery terminals and the
performance of background investigations and other related
activities which are charged to and collected from applicants or
license or permit holders.
(h) "Director" means the individual appointed by the Governor
to provide management and administration necessary to direct the
State Lottery Office.
(i) "Disable" or "terminal disable" means the process of
executing a shutdown command from the central control computer
which causes video lottery terminals to cease functioning.
(j) "Display" means the visual presentation of video lottery game features on a video lottery terminal in the form of video
images, actual symbols or both.
(k) "EPROM" and "erasable programmable read-only memory chips"
means the electronic storage medium on which the operation software
for all games playable on a video lottery terminal resides and
which can also be in the form of CD-ROM, flash RAM or other new
technology medium that the commission may from time to time approve
for use in video lottery terminals. All electronic storage media
are considered to be the property of the State of West Virginia.
(l) "Floor attendant" means a person, employed by a licensed
racetrack, who holds a permit issued by the commission and who
corrects paper jams and bill jams in video lottery terminals and
also provides courtesy services for video lottery players.
(m) "Gross terminal income" means the total amount of cash,
vouchers or tokens inserted into the video lottery terminals
operated by a licensee, minus the total value of coins and tokens
won by a player and game credits which are cleared from the video
lottery terminals in exchange for winning redemption tickets.
(n) "License" or "video lottery license" means authorization
granted by the commission to a racetrack which is licensed by the
West Virginia Racing Commission to conduct thoroughbred or
greyhound racing meetings pursuant to article twenty-three, chapter
nineteen of this code permitting the racetrack to operate video
lottery terminals authorized by the commission.
(o) "Lottery" means the public gaming systems or games
established and operated by the State Lottery Commission.
(p) "Manufacturer" means any person holding a permit granted
by the commission to engage in the business of designing, building,
constructing, assembling or manufacturing video lottery terminals,
the electronic computer components of the video lottery terminals,
the random number generator of the video lottery terminals, or the
cabinet in which it is housed, and whose product is intended for
sale, lease or other assignment to a licensed racetrack in West
Virginia, and who contracts directly with the licensee for the
sale, lease or other assignment to a licensed racetrack in West
Virginia.
(q) "Net terminal income" means gross terminal income minus an
amount deducted by the commission to reimburse the commission for
its actual costs of administering racetrack video lottery at the
licensed racetrack. No deduction for any or all costs and expenses
of a licensee related to the operation of video lottery games shall
be deducted from gross terminal income.
(r) "Noncash prize" means merchandise which a video lottery
player may be given the option to receive in lieu of cash in
exchange for a winning redemption ticket and which shall be
assigned a redemption value equal to the actual cost of the
merchandise to the licensed racetrack.
(s) "Own" means any beneficial or proprietary interest in any property or business of an applicant or licensed racetrack.
(t) "Pari-mutuel racing facility," "licensed racetrack,"
"racetrack" or "track" means a facility where horse or dog race
meetings are held and the pari-mutuel system of wagering is
authorized pursuant to the provisions of article twenty-three,
chapter nineteen of this code: Provided, That for the purposes of
this article, "pari-mutuel racing facility," "licensed racetrack,"
"racetrack" or "track" includes only a facility which was licensed
prior to January 1, 1994, to hold horse or dog race meetings, and
which conducts not less than two hundred twenty one hundred fifty
live racing dates for each horse or dog race meeting or such other
number of live racing dates as may be approved by the Racing
Commission in accordance with the provisions of section twelve-b,
article twenty-three, chapter nineteen of this code.
(u) "Permit" means authorization granted by the commission to
a person to function as either a video lottery manufacturer,
service technician or validation manager.
(v) "Person" means any natural person, corporation,
association, partnership, limited partnership, or other entity,
regardless of its form, structure or nature.
(w) "Player" means a person who plays a video lottery game on
a video lottery terminal at a racetrack licensed by the commission
to conduct video lottery games.
(x) "Service technician" means a person, employed by a licensed racetrack, who holds a permit issued by the commission and
who performs service, maintenance and repair on licensed video
lottery terminals in this state.
(y) "Video lottery game" means a commission approved, owned
and controlled electronically simulated game of chance which is
displayed on a video lottery terminal and which:
(1) Is connected to the commission's central control computer
by an on-line or dial-up communication system;
(2) Is initiated by a player's insertion of coins, currency,
vouchers or tokens into a video lottery terminal, which causes game
play credits to be displayed on the video lottery terminal and,
with respect to which, each game play credit entitles a player to
choose one or more symbols or numbers or to cause the video lottery
terminal to randomly select symbols or numbers;
(3) Allows the player to win additional game play credits,
coins or tokens based upon game rules which establish the random
selection of winning combinations of symbols or numbers or both and
the number of free play credits, coins or tokens to be awarded for
each winning combination of symbols or numbers or both;
(4) Is based upon computer-generated random selection of
winning combinations based totally or predominantly on chance;
(5) In the case of a video lottery game which allows the
player an option to select replacement symbols or numbers or
additional symbols or numbers after the game is initiated and in the course of play, either: (A) Signals the player, prior to any
optional selection by the player of randomly generated replacement
symbols or numbers, as to which symbols or numbers should be
retained by the player to present the best chance, based upon
probabilities, that the player may select a winning combination;
(B) signals the player, prior to any optional selection by the
player of randomly generated additional symbols or numbers, as to
whether such additional selection presents the best chance, based
upon probabilities, that the player may select a winning
combination; or (C) randomly generates additional or replacement
symbols and numbers for the player after automatically selecting
the symbols and numbers which should be retained to present the
best chance, based upon probabilities, for a winning combination,
so that in any event, the player is not permitted to benefit from
any personal skill, based upon a knowledge of probabilities, before
deciding which optional numbers or symbols to choose in the course
of video lottery game play;
(6) Allows a player at any time to simultaneously clear all
game play credits and print a redemption ticket entitling the
player to receive the cash value of the free plays cleared from the
video lottery terminal; and
(7) Does not use the following game themes commonly associated
with casino gambling: Roulette, dice, or baccarat card games:
Provided, That games having a display with symbols which appear to roll on drums to simulate a classic casino slot machine, game
themes of other card games and keno may be used.
(z) "Validation manager" means a person who holds a permit
issued by the commission and who performs video lottery ticket
redemption services.
(aa) "Video lottery" means a lottery which allows a game to be
played utilizing an electronic computer and an interactive computer
terminal device, equipped with a video screen and keys, a keyboard
or other equipment allowing input by an individual player, into
which the player inserts coins, currency, vouchers or tokens as
consideration in order for play to be available, and through which
terminal device the player may receive free games, coins, tokens or
credit that can be redeemed for cash, annuitized payments over
time, a noncash prize or nothing, as may be determined wholly or
predominantly by chance. "Video lottery" does not include a
lottery game which merely utilizes an electronic computer and a
video screen to operate a lottery game and communicate the results
of the game, such as the game "Travel", and which does not utilize
an interactive electronic terminal device allowing input by an
individual player.
(bb) "Video lottery terminal" means a commission-approved
interactive electronic terminal device which is connected with the
commission's central computer system, and which is used for the
purpose of playing video lottery games authorized by the commission. A video lottery terminal may simulate the play of one
or more video lottery games.
(cc) "Wager" means a sum of money or thing of value risked on
an uncertain occurrence.
§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:
(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 $2 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 beginning on July 1, 2013, and thereafter, the first $6 million generated by this
subdivision shall be deposited into the Community-Based Services
Fund for use as set forth in section twenty-seven of article
twenty-two-c, chapter twenty-nine of this code: Provided, however,
That in any fiscal year when the amount of money generated by this
subdivision totals $11 $17 million, with $6 million having been
deposited into the Community-Based Services Fund and $11 million
having been deposited into the Workers' Compensation Debt Reduction
Fund, 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 the first $6 million of such funds shall thereafter be
deposited into the Community-Based Services Fund for use as set
forth in section twenty-seven of article twenty-two-c, chapter
twenty-nine of this code, and any additional amounts 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.
§29-22A-10b. Distribution of excess net terminal income.
(a) For all years beginning on or after July 1, 2001, 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 June
30, 2001, 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) Until July 1, 2005, 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 in article twenty-three,
chapter nineteen of this code; on and after July 1, 2005, the rate
shall be four 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) 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 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, 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 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 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 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-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 June 30, 2004, this three percent of net
terminal income shall be distributed pursuant to the provisions of
paragraph (B), subdivision (8), subsection (c), section ten of this
article;
(9) (A) On and after July 1, 2005, four 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 beginning on July 1,
2013, and thereafter, the first $6 million generated by this
subdivision, together with the total allocation transferred by the
operation of subdivision (9), subsection (c), section ten of this
article, shall be deposited into the Community-Based Services Fund
for use as set forth in section twenty-seven of article twenty-two-
c, chapter twenty-nine of this code: Provided, however, That in
any fiscal year when the amount of money generated by this
subdivision together with the total allocation transferred by the
operation of subdivision (9), subsection (c), section ten of this article totals $11,000,000 $17 million, with $6 million having been
deposited into the Community-Based Services Fund and $11 million
having been deposited into the Workers' Compensation Debt Reduction
Fund, all subsequent distributions under this subdivision (9)
during that fiscal year 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;
(B) The deposit of the four 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, which and the first $6 million of such funds shall
thereafter be deposited into the Community-Based Services Fund for
use as set forth in section twenty-seven of article twenty-two-c,
chapter twenty-nine of this code, and any additional amounts 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 is
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 in
its entirety; and
(10) (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
June 30, 2004, this one percent of net terminal income shall be
distributed pursuant to the provisions of subparagraph (ii),
paragraph (B), subdivision (9), subsection (c), section ten of this
article.
(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.
ARTICLE 22C. WEST VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT.
§29-22C-8. License to operate a racetrack with West Virginia
Lottery table games.
(a) Racetrack table games licenses. -- The commission may
issue up to four racetrack table games licenses to operate West Virginia Lottery table games in accordance with the provisions of
this article. The Legislature intends that no more than four
licenses to operate a racetrack with West Virginia Lottery table
games in this state shall be permitted in any event.
(b) Grant of license. -- Upon the passage of a local option
election in a county in accordance with the provisions of section
seven of this article, the commission shall immediately grant a
West Virginia Lottery table games license, and a license for the
right to conduct West Virginia Lottery table games as assignee to
the intellectual property rights of the state, to allow the
licensee to conduct West Virginia table games at the licensed pari-
mutuel racetrack identified on the local option election ballot,
provided that racetrack holds a valid racetrack video lottery
license issued by the commission pursuant to article twenty-two-a
of this chapter and a valid racing license granted by the West
Virginia Racing Commission pursuant to the provision of article
twenty-three, chapter nineteen of this code and has otherwise met
the requirements for licensure under the provisions of this article
and the rules of the commission.
(c) Location. -- A racetrack table games license authorizes
the operation of West Virginia Lottery table games on the grounds
of the particular licensed facility identified in the racetrack
video lottery license issued pursuant to article twenty-two-a and
the license to conduct horse or dog racing issued pursuant to article twenty-three, chapter nineteen of this code.
(d) Floor plan submission requirement. -- Prior to commencing
the operation of any table games in a designated gaming area, a
racetrack table games licensee shall submit to the commission for
its approval a detailed floor plan depicting the location of the
designated gaming area in which table games gaming equipment will
be located and its proposed arrangement of the table games gaming
equipment. Any floor plan submission that satisfies the
requirements of the rules promulgated by the commission shall be
considered approved by the commission unless the racetrack table
games licensee is notified in writing to the contrary within one
month of filing a detailed floor plan.
(e) Management service contracts. --
(1) Approval. -- A racetrack table games licensee may not
enter into any management service contract that would permit any
person other than the licensee to act as the commission's agent in
operating West Virginia Lottery table games unless the management
service contract is: (A) With a person licensed under this article
to provide management services; (B) is in writing; and (C) the
contract has been approved by the commission.
(2) Material change. -- The licensed racetrack table games
licensee shall submit any material change in a management service
contract previously approved by the commission to the commission
for its approval or rejection before the material change may take effect.
(3) Prohibition on assignment or transfer. -- A management
services contract may not be assigned or transferred to a third
party.
(4) Other commission approvals and licenses. -- The duties and
responsibilities of a management services provider under a
management services contract may not be assigned, delegated,
subcontracted or transferred to a third party to perform without
the prior approval of the commission. Third parties must be
licensed under this article before providing service. The
commission may by rule clarify application of this subdivision and
provide exceptions to its application. The commission shall
license and require the display of West Virginia Lottery game logos
on appropriate game surfaces and other gaming items and locations
as the commission considers appropriate.
(f) Coordination of licensed activities. -- In order to
coordinate various licensed activities within racetrack facilities,
the following provisions apply to licensed racetrack facilities:
(1) The provisions of this article and of article twenty-two-a
of this chapter shall be interpreted to allow West Virginia Lottery
table games and racetrack video lottery operations under those
articles to be harmoniously conducted in the same designated gaming
area.
(2) On the effective date of this article, the provisions of section twenty-three of this article apply to all video lottery
games conducted within a racetrack facility, notwithstanding any
inconsistent provisions contained in article twenty-two-a of this
chapter to the contrary.
(3) On and after the effective date of this article, vacation
of the premises after service of beverages ceases is not required,
notwithstanding to the contrary any inconsistent provisions of this
code or inconsistent rules promulgated by the Alcohol Beverage
Control Commissioner with respect to hours of sale of those
beverages, or required vacation of the premises.
(g) Fees, expiration date and renewal. --
(1) An initial racetrack table games license fee of $1,500,000
shall be paid to the commission at the time of issuance of the
racetrack table games license, regardless of the number of months
remaining in the license year for which it is issued. All licenses
expire at the end of the day on June 30 each year.
(2) The commission shall annually renew a racetrack table
games license as of July 1, of each year provided the licensee:
(A) Successfully renews its racetrack video lottery license
under article twenty-two-a of this chapter before July 1;
(B) Pays to the commission the annual license renewal fee of
$2,500,000 required by this section at the time it files its
application for renewal of its license under article twenty-two-a
of this chapter: Provided, That beginning July 1, 2013, and thereafter, the annual license renewal fee required by this section
shall be $1 million due at the time of filing such application for
renewal of a license under article twenty-two-a of this chapter;
and
(C) During the current license year, the licensee complied
with all provisions of this article, all rules adopted by the
commission and all final orders of the commission applicable to the
licensee.
(3) Annual license surcharge for failure to construct hotel on
premises. -- It is the intent of the Legislature that each
racetrack for which a racetrack table games license has been issued
be or become a destination tourism resort facility. To that end,
it is important that each racetrack for which a racetrack table
games license has been issued operate a hotel with significant
amenities. Therefore, in addition to all other taxes and fees
required by the provisions of this article, there is hereby
imposed, upon each racetrack for which a racetrack table games
license has been issued an annual license surcharge, payable to the
commission in the amount of $2,500,000 if that racetrack does not
operate a hotel on its racing property that contains at least one
hundred fifty guest rooms with significant amenities within three
years of the passage of the local option election in its county
authorizing table games at the racetrack, provided the time for
completion of the hotel shall be extended by the same number of days as the completion of the hotel is delayed by a force majeure
events or conditions beyond the reasonable control of the racetrack
licensee. The surcharge shall be paid upon each renewal of its
racetrack table games license made after the expiration of the
three year period, and may be extended by the above force majeure
events or conditions, until the racetrack opens a qualifying hotel.
(4) If the licensee fails to apply to renew its license under
article twenty-three, chapter nineteen and article twenty-two-a,
chapter twenty-nine of this code until after the license expires,
the commission shall renew its license under this article at the
time it renews its license under article twenty-two-a of this
chapter provided the licensee has paid the annual license fee
required by this section and during the preceding license year the
licensee complied with all provisions of this article, all rules
adopted by the commission and all final orders of the commission
applicable to the licensee.
(h) Facility qualifications. -- A racetrack table games
licensee shall demonstrate that the racetrack with West Virginia
Lottery table games will: (1) Be accessible to disabled
individuals in accordance with applicable federal and state laws;
(2) be licensed in accordance with this article, and all other
applicable federal, state and local laws; and (3) meet any other
qualifications specified in rules adopted by the commission.
(i) Surety bond. -- A racetrack table games licensee shall execute a surety bond to be given to the state to guarantee the
licensee faithfully makes all payments in accordance with the
provisions of this article and rules promulgated by the commission.
The surety bond shall be:
(1) In the amount determined by the commission to be adequate
to protect the state against nonpayment by the licensee of amounts
due the state under this article;
(2) In a form approved by the commission; and
(3) With a surety approved by the commission who is licensed
to write surety insurance in this state. The bond shall remain in
effect during the term of the license and may not be canceled by a
surety on less than thirty days' notice in writing to the
commission. The total and aggregate liability of the surety on the
bond is limited to the amount specified in the bond.
(j) Authorization. -- A racetrack table games license
authorizes the licensee act as an agent of the commission in
operating an unlimited amount of West Virginia Lottery table games
while the license is active, subject to subsection (d) of this
section. A racetrack table games license is not transferable or
assignable and cannot be sold or pledged as collateral.
(k) Audits. -- When applying for a license and annually
thereafter prior to license renewal, a racetrack table games
licensee shall submit to the commission an annual audit, by a
certified public accountant, of the financial transactions and condition of the licensee's total operations. The audit shall be
made in accordance with generally accepted accounting principles
and applicable federal and state laws.
(l) Commission office space. -- A racetrack table games
licensee shall provide to the commission, at no cost to the
commission, suitable office space at the racetrack facility for the
commission to perform the duties required of it by this article and
the rules of the commission.
§29-22C-10. Duties of racetrack table games licensee.
(a) General. -- All racetrack table games licensees shall:
(1) Promptly report to the commission any facts or
circumstances related to the operation of a racetrack with West
Virginia Lottery table games which constitute a violation of state
or federal law;
(2) Conduct all table games activities and functions in a
manner which does not pose a threat to the public health, safety or
welfare of the citizens of this state and which does not adversely
affect the security or integrity of the operation of West Virginia
Lottery table games;
(3) Hold the commission and this state harmless from and
defend and pay for the defense of any and all claims which may be
asserted against a racetrack licensee, the commission, the state or
employees thereof, arising from the licensee's actions or omission
while acting as an agent of the commission by operation of West Virginia Lottery table games pursuant to this article;
(4) Assist the commission in maximizing table games revenues;
(5) Give preference in hiring to existing employees who have
expressed an interest in transferring to an entry level West
Virginia Lottery Table games job and who have demonstrated the
potential to succeed in that job. To enable these employees to
develop the skills necessary to fill an entry level West Virginia
Lottery table games position, a licensee shall provide customary
industry training for entry level West Virginia Lottery table games
jobs. The dates, times, place and manner of providing such
training, the appropriate qualifications and certifications, the
number of existing employees to be trained, the determination of
standards for evaluating successful performance in live auditions
for such positions and the determination of who shall be given West
Virginia Lottery table game jobs shall be within the sole business
discretion of the licensee's management, provided that among
equally qualified applicants, as determined by the licensee, length
of service shall be the determining factor;
(6) Maintain all records required by the commission;
(7) Upon request by the commission, provide the commission
access to all records and the physical premises where the
licensee's table games activities and related activities occur, for
the purpose of monitoring or inspecting the licensee's activities
and the table games, gaming equipment and security equipment;
(8) Keep current in all payments and obligations to the
commission; and
(9) Conduct no less than two hundred twenty one hundred fifty
live racing dates for each horse or dog race meeting or such other
number of live racing dates as may be approved by the Racing
Commission in accordance with the provisions of section twelve-b,
article twenty-three, chapter nineteen of this code, and otherwise
keep in good standing, all licenses and permits granted by the
Racing Commission pursuant to section six, article twenty-three,
chapter nineteen of this code, and any rules promulgated
thereunder.
(b) Specific. -- All racetrack table games licensees shall:
(1) Acquire West Virginia Lottery table games and gaming
equipment by purchase, lease or other assignment and provide a
secure location for the placement, operation and play of the table
games and gaming equipment;
(2) Permit no person to tamper with or interfere with the
operation of any West Virginia Lottery table game;
(3) Ensure that West Virginia Lottery table games are within
the sight and control of designated employees of the licensed
racetrack with West Virginia Lottery table games and under
continuous observation by security equipment in conformity with
specifications and requirements of the commission;
(4) Ensure that West Virginia Lottery table games are placed and remain placed in the specific locations within designated
gaming areas at the licensed racetrack which have been approved by
the commission. West Virginia Lottery table games at a licensed
racetrack shall only be relocated in accordance with the rules of
the commission;
(5) Maintain at all times sufficient cash and gaming tokens,
chips and electronic cards or other electronic media;
(6) Install, post and display conspicuously at locations
within or about the licensed racetrack with West Virginia Lottery
table games, signs, redemption information and other promotional
material as required by the commission; and
(7) Assume liability for stolen money from any table game.
§29-22C-26. Tax on the privilege of holding a license to operate
West Virginia Lottery table games.
(a) Imposition and rate of tax. -- For the privilege of
holding a license under this article to operate table games, there
is levied and shall be collected from the racetrack table games
licensee the annual privilege tax imposed by this section. The tax
shall be thirty-five twenty-five percent of the licensee's adjusted
gross receipts from the operation of West Virginia Lottery table
games. For purposes of calculating the amount of tax due under
this section, the licensee shall use the accrual method of
accounting.
(b) Tax returns and payment of tax. --
(1) The annual tax levied by subsection (a) of this section is
due and payable to the commission in weekly installments on or
before the Wednesday of the calendar week following the week in
which the adjusted gross receipts were received and the tax
accrued.
(2) The racetrack table games licensee shall, on or before
Wednesday of each week, make out and submit by electronic
communication to the commission, a return for the preceding week,
in the form prescribed by the commission, showing:
(A) The total gross receipts and adjusted gross receipts from
operation of West Virginia Lottery table games during that week;
(B) The amount of tax for which the racetrack table games
licensee is liable; and
(C) Any additional information necessary in the computation
and collection of the tax required by the commission.
(3) The amount of tax shown to be due on the return shall be
remitted by electronic funds transfer simultaneously with the
filing of the return. All payments received pursuant to this
section shall be deposited in the Racetrack Table Games Fund in
accordance with the provisions of section twenty-seven of this
article.
(4) When adjusted gross receipts for a week is a negative
number because the winnings paid to patrons wagering on the
racetrack's West Virginia Lottery table games exceeds the racetrack's gross receipts from the purchase of table game tokens,
chips or electronic media by patrons, the commission shall allow
the licensee to, pursuant to rules of the commission, carry over
the negative amount of adjusted gross receipts to returns filed for
subsequent weeks. The negative amount of adjusted gross receipts
may not be carried back to an earlier week and the commission is
not required to refund any tax received by the commission, except
when the licensee surrenders its license to act as agent of the
commission in operating West Virginia lottery table games under
this article and the licensee's last return filed under this
section shows negative adjusted gross receipts. In that case, the
commission shall multiply the amount of negative adjusted gross
receipts by the applicable rate of tax and pay the amount to the
licensee, in accordance with rules of the commission.
(c) Tax imposed by this section is in lieu of other taxes. --
(1) With the exception of the ad valorem property tax
collected under chapter eleven-a of this code, the tax imposed by
this section is in lieu of all other state taxes and fees imposed
on the operation of, or the proceeds from operation of West
Virginia Lottery table games, except as otherwise provided in this
section.
The Consumers Sales and Services Tax imposed pursuant to
article fifteen, chapter eleven of this code, shall not apply to
the licensee's gross receipts from any wagering on West Virginia Lottery table games authorized pursuant to this article or to the
licensee's purchase of gaming equipment, supplies or services
directly used in operation of the table games authorized by this
article. These purchases are also exempt from the Use Tax imposed
by article fifteen-a, chapter eleven of this code.
(2) With the exception of the ad valorem property tax
collected under chapter eleven-a of this code, the tax imposed by
this section is in lieu of all local taxes and fees levied on or
imposed with respect to the privilege of offering West Virginia
Lottery table games to the public, including, but not limited to,
the municipal business and occupation taxes and amusement taxes
authorized by article thirteen, chapter eight of this code, and the
municipal sales and service tax and use taxes authorized by article
thirteen-c, chapter eight of this code.
(d) Prohibition on credits. -- Notwithstanding any other
provision of this code to the contrary, no credit may be allowed
against the tax imposed by this section or against any other tax
imposed by any other provision of this code for any investment in
gaming equipment, or for any investment in real property, or in
improvements to the real property, that is used in the operation of
West Virginia Lottery table games.
NOTE: The purpose of this bill is to provide that the number
of horse races or dog races held on a racing day be set by the licensee. The bill reduces the number of racing dates required for
a horse or dog racing meeting license application. The bill
provides for use of funds paid to Horsemen's Benevolent and
Protective Association from special fund for payment of regular
purses. The bill further decreases the number of live racing dates
required for receiving telecasts and accepting wagers on horse and
dog race meetings. The bill further decreases the number of dates
on which live racing must be conducted by racetrack video lottery
and racetrack table games licensee. The bill provides for
distribution of certain amounts of net terminal income derived from
racetrack video lottery terminals to Community-Based Services Fund
to offset reduced racetrack table games license renewal fee and
decrease in table game privilege tax. The bill further provides
for annual racetrack table games license renewal fee and to
decrease percentage of table games privilege tax.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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