HB 2136 — Granting counties and municipalities a portion of the net terminal income from racetrack video lottery

NEWS RELEASES HELPFUL LINKS IntroducedCommittee VersionSubstitute « House Bill 2136 History OTHER VERSIONS  —  CommitteeIntroduced SubstituteVersion  |   |  Email Key:

Red = new code to be enacted WEST virginia legislature regular session IntroducedCommittee Substitute for House Bill 2136 By Delegates McGeehan and Paynter [Introduced February 10, 2021;

Referredreferred to the Committee on the Judiciary then Finance] A BILL to amend and reenact §29-22A-10 and §29-22A-10b of the Code of West Virginia, 1931, as amended, all relating to granting counties and municipalities a portion of the net terminal income from racetrack video lottery.

For the fiscal years ending June 30, 2011 through June 30, 2020,2030, the term “actual costs and expenses” may include transfers of up to $10$9 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.subsection.

For all fiscal years beginning on or after July 1, 2011, and ending with the fiscal year beginning July 1, 2020,2030, the commission shall deposit such amounts as are available according to subdivision (1),(1) subsection (b) of this sectionsubsection 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),(1) subsection (b) of this sectionsubsection for that year.

For each two$2 dollars expended by a licensed racetrack for facility modernization improvements at the racetrack, having a useful life of three or more years and placed in service after July 1, 2011, the licensed racetrack shall receive $1 in recoupment from its facility modernization account.

(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, 19991999, shall be divided as follows:

(5) The West Virginia Thoroughbred Development Fund created underpursuant to §19-23-13b of this code and the West Virginia Greyhound Breeding Development Fund created underpursuant to §19-23-10 of this code shall receive an equal share of a total of not less than one and one-half percent of the net terminal income;

(6) The West Virginia Racing Commission shall receive one percent of the net terminal income which shall be deposited and used as provided in §19-23-13c of this code.code;

(7) A licensee shall receive 46 and one-half percent of net terminal income.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 §29-22A-10b of this code into the fund administered by the West Virginia Economic Development Authority pursuant to §31-15-7 of this code, $5 million into the Capitol Renovation and Improvement Fund administered by the Department of Administration pursuant to §5A-4-6 of this codecode, 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 §29-22A-10b(a)(8)(B)§29-22a-10b(a)(8)(B) of this code 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 §29-22A-10b of this code shall be deposited into the Tourism Promotion Fund created underpursuant to §5B-2-12 of this code;

(ii) 0.375 percent of the total amount of net terminal income described in this section and in §29-22A-10b of this code shall be deposited into the Development Office Promotion Fund created underpursuant to §5B-2-3b of this code;

(iii) 0.5 percent of the total amount of net terminal income described in this section and in §29-22A-10b of this code shall be deposited into the Research Challenge Fund created underpursuant to §18B-1B-10 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 §23-2D-5§23-2d-5 of this code:

Provided, That in any fiscal year when the amount of money generated by this subdivision totals $11 million, all subsequent distributions underpursuant to 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 §19-23-1 et seq.

(B) The deposit of the seven percent of net terminal income into the Worker’sWorkers’ Compensation Debt Reduction Fund pursuant to this subdivision shall expire and not be imposed with respect to these funds and shall be deposited in the special fund established by the licensee and used for payment of regular purses in addition to the other amounts provided in §19-23-1 et seq.

of this code,code on and after the first day of the month following the month in which the Governor certifies to the Legislature that:

of this code,code have been retired or payment of the debt service provided for;

The moneys shall be deposited in the State Treasury in the Division of Culture and History special fund created underpursuant to §29-1I-3 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 “JohnJohn F.

‘Jack’ Bennett Fund”.Fund.

The Division of Veterans Affairs shall promulgate legislative rules pursuant to the provisions of §29A-3-1§29-3-1 et seq.

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 veteransveterans’ grave markers will be placed in the event that there are not sufficient funds to complete the placement of veteransveterans’ 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 underpursuant to §29-1I-3 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 underpursuant to §5A-4-5 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 underpursuant to §5A-4-2 of this code and Cultural Facilities and Capitol Resources Matching Grant Program Fund created underpursuant to §29-1-3 of this code.

(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 underpursuant to §5A-4-5 of this code, to be used for construction and maintenance of a parking garage on the State Capitol Complex;

The net terminal income shall be deposited in equal amounts into the Capitol Dome and Capitol Improvements Fund created underpursuant to §5A-4-2 of this code and the Cultural Facilities and Capitol Resources Matching Grant Program Fund created underpursuant to §29-1-3 of this code until a total of  $1.5$1,500,000 million is deposited into the Cultural Facilities and Capitol Resources Matching Grant Program Fund;

Interest shall accrue on any unpaid balance at a rate consistent with the amount charged for state income tax delinquency underpursuant to chapter 11 of this code.

(i) The commission has the right to examine all accounts, bank accounts, financial statementsstatements, 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.

(j) If a court of competent jurisdiction finds that the provisions of this section as amended and reenacted in 2021 and the provisions of §29-22A-10d of this code conflict and cannot be harmonized, the provisions of §29-22A-10d of this code shall control.

 NOTE:  NOTE:The purpose of this bill is to eliminate the discriminatory trigger mechanism “in excess of” language that prevents municipalities within counties that house a thoroughbred racetrack from equally participating in their net terminal income distributions because the “in excess of” language creates an unattainable trigger that has not been reached in years.

 The purpose of this bill is to eliminate the discriminatory trigger mechanism “in excess of” language that prevents municipalities within counties that house a thoroughbred racetrack from equally participating in their net terminal income distributions because the “in excess of” language creates an unattainable trigger that has not been reached in years.

  Bill Status  |  Bill Tracking  |  Legacy WV Code  |  Bulletin Board  |  District Maps  |  Senate Roster  |  House Roster  |  Live  |  Blog  |  Jobs  |  Links  |  Home This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.