HB 4640 — Relating to the transfer of certain revenues derived from lottery activities

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for House Bill 4640 NOTE By DelegateDelegates EspinosaEspinosa, and W.

Clark [Introducedand JanuaryAkers 12,[Originating 2024;in the Committee on Finance;

ReferredReported toon theFebruary Committee12, on2024] Finance]CS Intrfor HB 2024R10844640 A BILL to amend and reenact §29-22A-10d,§29-22A-10d and §29-22A-10e of the Code of West Virginia, 1931, as amended;

and to amend and reenact §29-22C-27a of said code, all relating to thechanges in distribution of racetrack video lottery changesnet interminal distributionincome, ofracetrack video lottery excess net terminal income;income, and lottery racetrack table games adjusted gross receipts;

changesrestoring indistributions distributionto ofpurse adjustedfunds grossand receiptsdevelopment infunds thethat lotteryhave racetrackpreviously tablebeen games;redirected since 2014;

and toremoving restoreobsolete moneysprovisions. previously removed from net terminal income in 2014.

(c) The total amount of reductions resulting from subsection (b) of this section shall be paid into the State Excess Lottery Revenue Fund, created by 29-22-18a§29-22-18a of this code.

For the fiscal year beginning July 1, 2014, and each fiscal year thereafter, distributions to be made pursuant to subdivisions (2) and (5), subsection (c), section ten of this article shall be reduced by ten percent, and the amounts resulting from the reduction shall be paid into the State Excess Lottery Revenue Fund 1 CS for HB 4640 (d) Notwithstanding any other provision of this code to the contrary, for the fiscal year beginning July 1, 2014, and each fiscal year thereafter, moneys deposited to the State Excess Intr HB 2024R1084 Lottery Revenue Fund pursuant to this section shall be expended by the Lottery in accordance with appropriations.

(e) Prior to payment of any appropriation made pursuant to this section, debt service payments payable from the State Excess Lottery Fund shall first be paid in accordance with the provisions of §29-22A-18a,§29-22-18a, §29-22A-18d,§29-22-18d, and §29-22A-18-e§29-22-18e of this code and in the priority as defined by §29-22A-18f(c)§29-22-18f(c) of this code.

(f) Notwithstanding any other provision of this code to the contrary, after payment of debt service from the State Excess Lottery Revenue Fund, all other distributions required by section §29-22A-18a§29-22-18a of this code and the distributions appropriated pursuant to this section shall be paid on a pro rata basis.

2 CS for HB 4640 (B) Notwithstanding any provision of subdivision (1) of this subsection or any provision of §29-22A-10(c)(9)(B) of this code or any other provision of this code to the contrary, the Governor Intr HB 2024R1084 may, by Executive Order, redirect one-half of the deposits of revenues derived from net terminal income imposed under this article, for any period commencing after June 30, 2016, and ending before July 1, 2017, to the General Revenue Fund, instead of to the funds otherwise mandated in this article, in §23-2D-1 et seq.

(a) Notwithstanding any provision of subsection (a), section ten-b of this article §29-22A- 10b(a) of this code to the contrary, for the fiscal year beginning July 1, 2014, and each fiscal year thereafter, each distribution, except those distributions to be made pursuant to §29-22A-10b(a) (1), (2), (3), (4), (5) and (7) of this code, shall be reduced by 100 percent.

For the fiscal year beginning July 1, 2014, and each fiscal year thereafter, distributions to be made pursuant to subdivisions (2) and (5), subsection (a), section ten-b of this article shall be reduced by ten percent, and the amounts resulting from the reduction shall be paid into the State Excess Lottery Revenue Fund (c) Notwithstanding any other provision of this code to the contrary, for the fiscal year beginning July 1, 2014, and each fiscal year thereafter, moneys deposited to the State Excess 3 CS for HB 4640 Lottery Revenue Fund pursuant to this section shall be expended by the Lottery in accordance with appropriations.

Intr HB 2024R1084 (d) Prior to payment of any appropriation made pursuant to this section, debt service payments payable from the State Excess Lottery Fund shall first be paid in accordance with the §29-22-18a, §29-22-18d, and §29-22-18-e§29-22-18e of this code and in the priority as defined by §29-22- 18f(c) of this code.

(f)(1) Except as provided in subdivision (2) of this subsection, notwithstanding the provisions of §29-22A-10b(9)(a)(B)§29-22A-10b(a)(9)(B) of this code, upon certification of the Governor to the Legislature that an independent actuary has determined that the unfunded liability of the Old Fund, as defined in chapter 23 of this code, has been paid or provided for in its entirety, the transfers made to the Workers’ Compensation Debt Reduction Fund pursuant to §29-22A-10b(a)(9)9A)§29-22A-10b(a)(9)(A) of this code shall expire and those funds shall remain in the State Excess Lottery Revenue Fund subject to appropriation.

4 CS for HB 4640 (B) Notwithstanding any provision of subdivision (1) of this subsection or any provision of §29-22A-10b(a)(9)(B) of this code or any other provision of this code to the contrary, the Governor may, by Executive Order, redirect one-half of the deposits of revenues derived from net terminal Intr HB 2024R1084 income imposed under this article, for any period commencing after June 30, 2016, and ending before July 1, 2017, to the General Revenue Fund, instead of to the funds otherwise mandated in this article, in §23-2D-1 et seq.

(a) Notwithstanding any provision of §29-22C-27 of this code to the contrary, for the fiscal year beginning July 1, 2014, and each fiscal year thereafter, the distribution directed pursuant to subdivision (1), subsection (d) of that section §29-22C-27(d)(1) of this code shall be reduced by 100 percent.

5 CS for HB 4640 (d) Prior to payment of any appropriation made pursuant to this section, debt service payments payable from the State Excess Lottery Fund shall first be paid in accordance with the provisions of §29-22-18a, §29-22-18d, and §29-22-18e of this code and in the priority as defined by §29-22-18f(c) of this code.

Intr HB 2024R1084 (e) Notwithstanding any other provision of this code to the contrary, after payment of debt service from the State Excess Lottery Revenue Fund, all other distributions required by §29-22- 18a of this code and the distributions appropriated pursuant to this section shall be paid on a pro rata basis.

NOTE:

The purpose of this bill is to restore moneys previously removed from net terminal income in 2014 and the racetrack video lottery and racetrack table games.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.