SB 285 — Eliminating WV Greyhound Breeding Development Fund

Part II.  Definitions;

West Virginia Racing Commissioner – Organization and Operation.

Article 23.

horse and dog racing.

§19-23-3.

Definitions.

Unless the context clearly requires a different meaning, as used in this article:

(1) “Horse racing” means any type of horse racing, including, but not limited to, thoroughbred racing and harness racing;

(2) “Thoroughbred racing” means flat or running type horse racing in which each horse participating is a thoroughbred and mounted by a jockey;

(3) “Harness racing” means horse racing in which the horses participating are harnessed to a sulky, carriage, or other vehicle and does not include any form of horse racing in which the horses are mounted by jockeys;

(4) “Horse race meeting” means the whole period of time for which a license is required by the provisions of §19-23-1 of this code;

(5) “Dog racing” means any type of dog racing, including, but not limited to, greyhound racing;

(6) “Purse” means any purse, stake or award for which a horse or dog race is run;

(7) “Racing association” or “person” means any individual, partnership, firm, association, corporation, or other entity or organization of whatever character or description;

(8) “Applicant” means any racing association making application for a license under the provisions of this article or any person making application for a permit under the provisions of this article or any person making application for a construction permit under the provisions of this article;

(9) “License” means the license required by the provisions of §19-23-1 of this code or the license required to conduct televised racing pursuant to §19-23-12b of this code;

(10) “Permit” means the permit required by the provisions of §19-23-2 of this code;

(11) “Construction permit” means the construction permit required by the provisions of §19-23-18 of this code;

(12) “Licensee” means any racing association holding a license required by the provisions of §19-23-1 of this code and issued under the provisions of this article;

(13) “Permit holder” means any person holding a permit required by the provisions of §19-23-2 of this code and issued under the provisions of this article;

(14) “Construction permit holder” means any person holding a construction permit required by the provisions of §19-23-18 of this code and issued under the provisions of this article;

(15) “Hold or conduct” includes “assist, aid, or abet in holding or conducting”;

(16) “Racing Commission” means the West Virginia Racing Commission;

(17) “Stewards” means the steward or stewards representing the Racing Commission, the steward or stewards representing a licensee, and any other steward or stewards whose duty it is to supervise any horse or dog race meeting, all as may be provided by reasonable rules of the Racing Commission which rules shall specify the number of stewards to be appointed, the method and manner of their appointment, and their powers, authority, and duties;

(18) “Pari-mutuel” means a mutuel or collective pool that can be divided among those who have contributed their wagers to one central agency, the odds to be reckoned in accordance to the collective amounts wagered upon each contestant running in a horse or dog race upon which the pool is made, but the total to be divided among the first three contestants on the basis of the number of wagers on these;

(19) “Pari-mutuel clerk” means any employee of a licensed racing association who is responsible for the collection of wagers, the distribution of moneys for winning pari-mutuel tickets, verification of the validity of pari-mutuel tickets, and accounting for pari-mutuel funds;

(20) “Pool” means a combination of interests in a joint wagering enterprise or a stake in such enterprise;

(21) “Legitimate breakage” is the percentage left over in the division of a pool;

(22) “To the dime” means that wagers shall be figured and paid to the dime;

(23) “Code” means the Code of West Virginia, 1931, as heretofore and hereinafter amended;

(24) “Accredited thoroughbred horse” means a thoroughbred horse that is registered with the West Virginia Thoroughbred Breeders Association and that is:

(A) Foaled in West Virginia;

or (B) Sired by an accredited West Virginia sire;

or (C) As a yearling, finished consecutive months of verifiable residence in the state, except for 30 days’ grace:

 (i) For the horse to be shipped to and from horse sales where the horse is officially entered in the sales catalogue of a recognized thoroughbred sales company, or (ii) For obtaining veterinary services, documented by veterinary reports;

(25) “Accredited West Virginia sire” is a sire that is permanently domiciled in West Virginia, stands a full season in West Virginia, and is registered with the West Virginia Thoroughbred Breeders Association;

(26) “Breeder of an accredited West Virginia horse” is the owner of the foal at the time it was born in West Virginia;

(27) “Raiser of an accredited West Virginia horse” is the owner of the yearling at the time it finished 12 consecutive months of verifiable residence in the state.

During the period, the raiser will be granted one month of grace for his or her horse to be shipped to and from thoroughbred sales where the horse is officially entered in the sales catalogue of a recognized thoroughbred sales company.

In the event the yearling was born in another state and transported to this state, this definition does not apply after the December 31, 2007, to any pari-mutuel racing facility located in Jefferson County nor shall it apply after the December 31, 2012, and thereafter to any pari-mutuel racing facility located in Hancock County.

Prior to the horse being shipped out of the state for sales, the raiser must notify the Racing Commission of his or her intentions;

(28) The “owner of an accredited West Virginia sire” is the owner of record at the time the offspring is conceived;

(29) The “owner of an accredited West Virginia horse” means the owner at the time the horse earned designated purses to qualify for restricted purse supplements provided in §19-23-13b of this code;

(30) “Registered greyhound owner” means an owner of a greyhound that is registered with the National Greyhound Association;

(31) “Fund” means the West Virginia Thoroughbred Development Fund established in §19-23-13b of this code;

and (32) “Regular purse” means both regular purses and stakes purses.

Part V.

License and Permit Procedures.

§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 200, such applicant intends to hold or conduct such horse or dog race meeting (which may be on any day including Sundays):

Provided, That effective July 1, 2020, and thereafter, an applicant is not required to race any minimum number of dates in order to qualify for a license to hold a dog race meeting;

(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 §19-23-2 of this code, 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.

Part VII.

Taxation of Horse and Dog Racing and Pari-Mutuel Wagering;

Disposition of Revenues.

§19-23-10.

Daily license tax;

pari-mutuel pools tax;

how taxes paid;

alternate tax;

credits.

(a) Any racing association conducting thoroughbred racing at any horse racetrack in this state shall pay each day upon which horse races are run a daily license tax of $250.

Any racing association conducting harness racing at any horse racetrack in this state shall pay each day upon which horse races are run a daily license tax of $150.

Any racing association conducting dog races shall pay each day upon which dog races are run a daily license tax of $150.

In the event thoroughbred racing, harness racing, dog racing, or any combination of the foregoing are conducted on the same day at the same racetrack by the same racing association, only one daily license tax in the amount of $250 shall be paid for that day.

Any daily license tax shall not apply to any local, county, or state fair, horse show or agricultural or livestock exposition at which horse racing is conducted for not more than six days.

(b) Any racing association licensed by the Racing Commission to conduct thoroughbred racing and permitting and conducting pari-mutuel wagering under the provisions of this article shall, in addition to the daily license tax set forth in subsection (a) of this section, pay to the Racing Commission, from the commission deducted each day by the licensee from the pari-mutuel pools on thoroughbred racing a tax calculated on the total daily contribution of all pari-mutuel pools conducted or made at any and every thoroughbred race meeting of the licensee licensed under the provisions of this article.

The tax, on the pari-mutuel pools conducted or made each day during the months of January, February, March, October, November, and December, shall be calculated at four tenths of one percent of the pool;

and, on the pari-mutuel pools conducted or made each day during all other months, shall be calculated at one and four-tenths percent of the pool:

Provided, That out of the amount realized from the three tenths of one percent decrease in the tax effective for fiscal year 1991 and thereafter, which decrease correspondingly increases the amount of commission retained by the licensee, the licensee shall annually expend or dedicate:

(i) One half of the realized amount for capital improvements in its barn area at the track, subject to the Racing Commission’s prior approval of the plans for the improvements;

and (ii) the remaining one half of the realized amount for capital improvements as the licensee may determine appropriate at the track.

The term “capital improvement” shall be as defined by the Internal Revenue Code:

Provided, however, That any racing association operating a horse racetrack in this state having an average daily pari-mutuel pool on horse racing of $280,000 or less per day for the race meetings of the preceding calendar year shall, in lieu of payment of the pari-mutuel pool tax, calculated as in this subsection, be permitted to conduct pari-mutuel wagering at the horse racetrack on the basis of a daily pari-mutuel pool tax fixed as follows:

On the daily pari-mutuel pool not exceeding $300,000 the daily pari-mutuel pool tax shall be $1,000 plus the otherwise applicable percentage rate imposed by this subsection of the daily pari-mutuel pool, if any, in excess of $300,000:

Provided further, That upon the effective date of the reduction of the daily pari-mutuel pool tax to $1,000 from the former $2,000, the association or licensee shall daily deposit $500 into the special fund for regular purses established by §19-23-9(b)(1) of this code:

And provided further, That if an association or licensee qualifying for the foregoing alternate tax conducts more than one racing performance, each consisting of up to 13 races in a calendar day, the association or licensee shall pay both the daily license tax imposed in subsection (a) of this section and the alternate tax in this subsection for each performance:

And provided further, That a licensee qualifying for the foregoing alternate tax is excluded from participation in the fund established by §19-23-13b of this code:

And provided further, That this exclusion shall not apply to any thoroughbred racetrack at which the licensee has participated in the West Virginia Thoroughbred Development Fund for more than four consecutive years prior to December 31, 1992.

(c) Any racing association licensed by the Racing Commission to conduct harness racing and permitting and conducting pari-mutuel wagering under the provisions of this article shall, in addition to the daily license tax required under subsection (a) of this section, pay to the Racing Commission, from the commission deducted each day by the licensee from the pari-mutuel pools on harness racing, as a tax, three percent of the first $100,000 wagered, or any part thereof;

four percent of the next $150,000;

and five and three-fourths percent of all over that amount wagered each day in all pari-mutuel pools conducted or made at any and every harness race meeting of the licensee licensed under the provisions of this article.

(d) Any racing association licensed by the Racing Commission to conduct dog racing and permitting and conducting pari-mutuel wagering under the provisions of this article shall, in addition to the daily license tax required under subsection (a) of this section, pay to the Racing Commission, from the commission deducted each day by the licensee from the pari-mutuel pools on dog racing, as a tax, four percent of the first $50,000 or any part thereof of the pari-mutuel pools, five percent of the next $50,000 of the pari-mutuel pools, six percent of the next $100,000 of the pari-mutuel pools, seven percent of the next $150,000 of the pari-mutuel pools, and eight percent of all over $350,000 wagered each day:

Provided, That the licensee shall deduct daily from the pari-mutuel tax an amount equal to one tenth of one percent of the daily pari-mutuel pools in dog racing in fiscal year 1990;

fifteen hundredths of one percent in fiscal year 1991;

two tenths of one percent in fiscal year 1992;

one quarter of one percent in fiscal year 1993;

and three tenths of one percent in fiscal year 1994 and every fiscal year thereafter.

The amounts deducted shall be paid to the Racing Commission to be deposited by the Racing Commission in a banking institution of its choice in a special account to be known as the West Virginia Racing Commission-Special Account-West Virginia Greyhound Breeding Development Fund:

Provided, however, That effective July 1, 2020, and thereafter, the amounts deducted and any other moneys required by this section to be deposited in the West Virginia Greyhound Breeding Development Fund shall instead be deposited in the State Excess Lottery Revenue Fund pursuant to the provisions of §19-23-10a of this code:

Provided further, That effective July 1, 2020, and thereafter, any expenditures from the West Virginia Greyhound Breeding Development Fund required by this section shall be discontinued:

And provided further, That effective July 1, 2020, and thereafter, all amounts required by this section to be deposited into any fund or paid for the purpose of funding purses, awards, or providing any other funding for dog races shall be discontinued pursuant to §19-23-10a of this code.

The purpose of the West Virginia Greyhound Breeding Development Fund is to promote better breeding, training track facilities, and racing of greyhounds in the state through awards and purses to bona fide resident registered greyhound owners of accredited West Virginia whelped greyhounds.

In order to participate and be eligible to receive an award or purse through the fund, the registered greyhound owner must have an appropriate license from the Racing Commission to race in West Virginia.

The registered greyhound dam at the time of breeding must be wholly or solely owned or leased by a bona fide resident or residents of West Virginia.

The accredited West Virginia whelped greyhound must be wholly or solely owned by a bona fide resident or residents of this state.

To qualify as a bona fide resident of West Virginia, a registered greyhound owner may not claim residency in any other state.

A registered greyhound owner must prove bona fide residency by providing to the commission personal income tax returns filed in the State of West Virginia for the most recent tax year and the three previous tax years, has real or personal property in this state on which the owner has paid real or personal property taxes during the most recent tax year and the previous three tax years and an affidavit stating that the owner claims no other state of residency.

The Racing Commission shall maintain a registry for West Virginia bred greyhounds.

The moneys shall be expended by the Racing Commission for purses for stake races, training track facilities, supplemental purse awards, administration, promotion, education, and greyhound adoption programs involving West Virginia whelped dogs, owned by residents of this state under rules promulgated by the Racing Commission.

The Racing Commission shall pay out of the greyhound breeding development fund to each of the licensed dog racing tracks the sum of $75,000 for the fiscal year ending June 30, 1994.

The licensee shall deposit the sum into the special fund for regular purses established under the provisions of §19-23-9 of this code.

The funds shall be expended solely for the purpose of supplementing regular purses under rules promulgated by the Racing Commission.

Supplemental purse awards will be distributed as follows:

Supplemental purses shall be paid directly to the registered greyhound owner of an accredited greyhound.

The registered greyhound owner of accredited West Virginia whelped greyhounds that earn points at any West Virginia meet will receive a bonus award calculated at the end of each month as a percentage of the fund dedicated to the owners as purse supplements, which shall be a minimum of 50 percent of the total moneys deposited into the West Virginia Greyhound Breeding Development Fund monthly.

The total amount of the fund available for the owners’ awards shall be distributed according to the ratio of points earned by an accredited greyhound to the total amount earned in races by all accredited West Virginia whelped greyhounds for that month as a percentage of the funds dedicated to the owners’ purse supplements.

The point value at all greyhound tracks shall be the same as approved by the Racing Commission to be effective April 1, 2007.

The West Virginia Greyhound Owners and Breeders Association shall submit a list of any additions or deletions to the registry of accredited West Virginia whelped greyhounds on the first of each month.

The Racing Commission shall not require anyone to be a member of a particular association in order to participate in the West Virginia Greyhound Breeding Development Fund.

The registered greyhound owner of an accredited West Virginia whelped greyhound shall file a purse distribution form with the Racing Commission for a percentage of his or her dog’s earnings to be paid directly to the registered greyhound owner or owners of the greyhound.

Distribution shall be made on the 15th day of each month for the preceding month’s achievements.

In no event shall points earned at a meet held at a track which did not make contributions to the West Virginia Greyhound Breeding Development Fund out of the daily pool on the day the meet was held qualify or count toward eligibility for supplemental purse awards.

Any balance in the purse supplement funds after all distributions have been made for the year revert to the general account of the fund for distribution in the following year:

Provided, That not more than $2 million from the balance in the purse supplemental fund shall be used for the construction and maintenance of two dog training track facilities if such be approved by the Racing Commission:

Provided, however, That not more than $1 million may be allocated for the construction and maintenance of each training track:

Provided further, That both training track facilities must be located in West Virginia.

The West Virginia Racing Commission shall be authorized to promulgate rules governing dog training tracks:

And provided further, That the Racing Commission shall:

(1) Provide a process in its rules for competitive bidding of the construction or maintenance, or both, of the training tracks;

and (2) set standards to assure that only the actual costs of construction and maintenance shall be paid out of the foregoing fund.

In an effort to further promote the breeding of quality West Virginia whelped greyhounds, a bonus purse supplement shall be established in the amount of $50,000 per annum, to be paid in equal quarterly installments of $12,500 per quarter using the same method to calculate and distribute these funds as the regular supplemental purse awards.

This bonus purse supplement is for three years only, commencing on July 1, 1993, and ending June 30, 1996.

This money would come from the current existing balance in the greyhound development fund.

Each pari-mutuel greyhound track shall provide stakes races for accredited West Virginia whelped greyhounds:

Provided, That each pari-mutuel track shall have one juvenile and one open stake race annually.

Each pari-mutuel dog track shall provide at least three restricted races for accredited West Virginia whelped greyhounds per race card:

Provided, however, That sufficient dogs are available.

To assure breeders of accredited West Virginia whelped greyhounds an opportunity to participate in the West Virginia Greyhound Breeding Development Fund the West Virginia Racing Commission by July 1 each year shall establish and announce the minimum number of accredited West Virginia whelped greyhounds that greyhound racing kennels at West Virginia dog tracks must have on their racing active list during the calendar year following such action.

The minimum number may vary from dog track to dog track.

The minimum number shall be established after consultation with the West Virginia Greyhound Owners and Breeders Association and kennel owners and operators.

Factors to be considered in establishing this minimum number shall be the number of individually registered accredited West Virginia whelped greyhounds whelped in the previous two years.

The number of all greyhounds seeking qualification at each West Virginia dog track, the ratio of active running greyhounds to housed number of greyhounds at each West Virginia dog track, and the size and number of racing kennels at each West Virginia dog track.

Any greyhound racing kennel not having the minimum number of accredited West Virginia whelped greyhounds determined by the West Virginia Racing Commission on their active list shall only be permitted to race the maximum allowable number on the active list less the number of accredited West Virginia whelped greyhounds below the established minimum number.

Consistent violations of this minimum requirement may be reviewed by the Racing Commission and may constitute cause for denial or revocation of a kennel’s racing license.

The Racing Commission shall oversee and approve racing schedules and purse amounts.

Ten percent of the deposits into the Greyhound Breeding Development Fund beginning July 1, 1993 and continuing each year thereafter, shall be withheld by the Racing Commission and placed in a special revenue account hereby created in the State Treasury called the Administration, Promotion, Education, Capital Improvement and Greyhound Adoption Programs to Include Spaying and Neutering Account.

The Racing Commission is authorized to expend the moneys deposited in the Administration, Promotion, Education, Capital Improvement and Greyhound Adoption Programs to Include Spaying and Neutering Account at such times and in such amounts as the commission determines to be necessary for purposes of administering and promoting the greyhound development program:

Provided, That beginning with fiscal year 1995 and in each fiscal year thereafter in which the commission anticipates spending any money from the account, the commission shall submit to the executive department during the budget preparation period prior to the Legislature convening before that fiscal year for inclusion in the Executive Budget Document and Budget Bill, the recommended expenditures, as well as requests of appropriations for the purpose of administration, promotion, education, capital improvement, and greyhound adoption programs to include spaying and neutering.

The commission shall make an annual report to the Legislature on the status of the Administration, Promotion, Education, Capital Improvement and Greyhound Adoption Programs to Include Spaying and Neutering Account, including the previous year’s expenditures and projected expenditures for the next year.

The Racing Commission, for the fiscal year 1994 only, may expend up to $35,000 from the West Virginia Greyhound Breeding Development Fund to accomplish the purposes of this section without strictly following the requirements in the previous paragraph.

(e) All daily license and pari-mutuel pools tax payments required under the provisions of this section shall be made to the Racing Commission or its agent after the last race of each day of each horse or dog race meeting, and the pari-mutuel pools tax payments shall be made from all contributions to all pari-mutuel pools to each and every race of the day.

(f) Every association or licensee subject to the provisions of this article, including the changed provisions of §19-23-9 and §19-23-10 of this code, shall annually submit to the Racing Commission and the Legislature financial statements, including a balance sheet, income statement, statement of change in financial position, and an audit of any electronic data system used for pari-mutuel tickets and betting, prepared in accordance with generally accepted auditing standards, as certified by an experienced public accountant or a certified public accountant.

§19-23-10a.

West Virginia Greyhound Breeding Development Fund;

transfer of current funds and future deposits.

(a) Notwithstanding any other provision of this code, effective July 1, 2020, the West Virginia Greyhound Breeding Development Fund created in §19-23-10 of this code is discontinued.

On or before July 1, 2020, all amounts remaining in the West Virginia Greyhound Breeding Development Fund shall be transferred to the State Excess Lottery Revenue Fund created in §29-22-18a of this code for appropriation by the Legislature:

Provided, That $1 million shall be withheld by the Racing Commission and placed in the special revenue account called the Administration, Promotion, Education, Capital Improvement and Greyhound Adoption Programs to Include Spaying and Neutering Account created in §19-23-10(d) of this code, to be allocated specifically to facilitate care for and adoption of, or placement in no-kill animal shelters of, accredited West Virginia whelped greyhounds actively running at each West Virginia dog track:

Provided, however, That $3 million shall be withheld by the Racing Commission and placed in a special revenue account hereby created in the State Treasury called the Displaced Racing Workers Employment Retraining Fund, which is to be allocated by Workforce West Virginia for the retraining of any workers with a direct relationship to the greyhound racing industry who are displaced as a direct result of the termination of the West Virginia Greyhound Breeding Development Fund, as verified by the Racing Commission.  Any funds remaining in either the Administration, Promotion, Education, Capital Improvement and Greyhound Adoption Programs to Include Spaying and Neutering Account or the Displaced Racing Workers Employment Retraining Fund as of June 30, 2021, shall thereafter be transferred into the State Excess Lottery Revenue Fund for appropriation by the Legislature.

(b) Notwithstanding any other provision of this code, effective July 1, 2020, and thereafter, all amounts required to be deposited into the West Virginia Greyhound Breeding Development Fund prior to the enactment of this section shall, in lieu thereof, be deposited into the State Excess Lottery Revenue Fund for appropriation by the Legislature:

Provided, That net terminal lottery income shall be distributed as provided in §29-22A-10(c)(5) and §29-22A-10b(a)(5) of this code.

(c) Notwithstanding any other provision of this code to the contrary, effective July 1, 2020, and thereafter, all amounts required to be deposited into any fund or paid for the purpose of funding purses, awards or providing any other funding for greyhound races shall, in lieu thereof, be deposited into the State Excess Lottery Fund for appropriation by the Legislature.

§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 §19-23-2 of this code;

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) (1) A licensee conducting not less than 220 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 effective July 1, 2020, and thereafter, a licensee that was licensed prior to January 1, 1994, to conduct dog racing is not required to conduct a minimum number of live racing dates to contract with a legal wagering entity in this state or in any other governmental jurisdiction to receive telecasts and accept wagers on dog and horse races:

Provided, however, That at those thoroughbred racetracks the licensee, in applying for racing dates, shall apply for not less than 210 live racing dates for each horse race meeting:

Provided further, 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 159 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 72 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 10 days of the notification the request will be approved:

And 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 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 185 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 §19-23-12a of this code.

The contract must receive the approval of the representative of the majority of the owners and trainers who hold permits required by §19-23-2 of this code at the receiving thoroughbred racetrack.

(2) A facility that was licensed prior to January 1, 1994, to conduct dog racing is required to hold a racing license to receive telecasts and accept wagers on dog and horse races, regardless of whether the facility continues to conduct live dog racing.  (3) The commission shall have the authority to promulgate rules, including emergency rules, in accordance with §29A-3-1 et seq.

of this code, as it deems necessary to implement and efficiently administer the requirement of subdivision (2) of this subsection:

Provided, That the rules are to be consistent with the rules promulgated for pari-mutuel wagering on televised races at live racetracks.

(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 §19-23-10 of this code;

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 §19-23-10(e) of this code.

(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 §19-23-13b of this code:

Provided, That no licensee qualifying for the alternate tax provisions of §19-23-10(b) of this code 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 50 percent of the remainder into the purse fund established under the provisions of §19-23-9(b)(1) of this code.

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:

Provided, That effective July 1, 2020, and thereafter, the amount required to be paid to the West Virginia Greyhound Breeding Development Fund by this subsection shall instead be paid to the State Excess Lottery Revenue Fund pursuant to §19-23-10a of this code.

(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.

Part VIII.

Disposition of Funds for Payment of Outstanding and Unredeemed Pari-Mutuel Tickets;

Irredeemable Tickets;

Awards.

§19-23-13.  Disposition of funds for payment of outstanding and unredeemed pari-mutuel tickets;

publication of notice;

irredeemable tickets;

payment of past obligations.

(a) All moneys held by any licensee for the payment of outstanding and unredeemed pari-mutuel tickets, if not claimed within 90 days after the close of a horse or dog race meeting or the televised racing day, as the case may be, in connection with which the tickets were issued, shall be turned over by the licensee to the Racing Commission within 15 days after the expiration of the 90-day period, and the licensee shall give any information required by the Racing Commission concerning the outstanding and unredeemed tickets.

The moneys shall be deposited by the Racing Commission in a banking institution of its choice in a special account to be known as West Virginia Racing Commission Special Account - Unredeemed Pari-Mutuel Tickets.

Notice of the amount, date and place of each deposit shall be given by the Racing Commission, in writing, to the State Treasurer.

The Racing Commission shall then cause to be published a notice to the holders of the outstanding and unredeemed pari-mutuel tickets, notifying them to present their unredeemed tickets for payment at the principal office of the Racing Commission within 90 days from the date of the publication of the notice.

The notice shall be published within 15 days following the receipt of the outstanding and unredeemed pari-mutuel ticket moneys by the commission from the licensee as a Class I legal advertisement in compliance with the provisions of §59-3-1 et seq.

of this code, and the publication area for the publication shall be the county in which the horse or dog race meeting was held and the county in which the televised racing day wagering was conducted in this state.

(b) Any outstanding and unredeemed pari-mutuel tickets that are not presented for payment within 90 days from the date of the publication of the notice are thereafter irredeemable, and the moneys theretofore held for the redemption of the pari-mutuel tickets shall become the property of the Racing Commission and shall be expended as provided in subsections (c) and (d) of this section.

The Racing Commission shall maintain separate accounts for each licensee and shall record in each separate account the moneys turned over by the licensee and the amount expended at the licensee’s track for the purposes set forth in this subsection.

(c) In the fiscal year beginning on July 1, 2010, the Racing Commission shall keep separate the unredeemed pari-mutuel tickets received from each of the two licensee horse racetracks.

(1) The unredeemed pari-mutuel tickets attributable to each licensee horse racetrack together with funds distributed pursuant to §29-22-18a of this code shall be used for claims received pursuant to this subsection by the Racing Commission each calendar quarter:

Provided, That the first distribution after the effective date of amendments to this section made during the 2010 regular legislative session shall not occur until February 2011 and then each calendar quarter thereafter.  Any claims made pursuant to this subsection must be submitted to the Racing Commission no later than 15 days after the race where the funds are awarded.

The funds in the two special accounts - unredeemed pari-mutuel tickets shall be distributed based on claims received from each horse racetrack as follows:

(A) To the owner of the winning horse in any horse race at a horse race meeting held or conducted by any licensee:

Provided, That the owner of the horse is at the time of the horse race a bona fide resident of this state, a sum equal to 10 percent of the purse won by the horse at that race:

Provided, however, That in the event there are more than 10 races in any performance, the award to the resident owner of the winning horse will be that fractional share of the purse with a numerator of one and a denominator representing the number of races on the day of the performance.

The commission may require proof that the owner was, at the time of the race, a bona fide resident of this state.

Upon proof by the owner that he or she filed a personal income tax return in this state for the previous two years and that he or she owned real or personal property in this state and paid taxes in this state on real or personal property for the previous two years, he or she shall be presumed to be a bona fide resident of this state;

and (B) To the breeder (that is, the owner of the mare) of the winning horse in any horse race at a horse race meeting held or conducted by any licensee:

Provided, That the mare foaled in this state, a sum equal to 10 percent of the purse won by the horse:

Provided, however, That in the event there are more than 10 races in any performance, the award to the breeder will be that fractional share of the purse with a numerator of one and a denominator representing the number of races on the day of the performance;

and (C) To the owner of the stallion which sired the winning horse in any horse race at a horse race meeting held or conducted by any licensee:  Provided, That the mare which foaled the winning horse was served by a stallion standing and registered in this state, a sum equal to 10 percent of the purse won by the horse:  Provided, however, That in the event there are more than 10 races in any performance, the award to the owner of the stallion will be a percentage of the purse based upon the fractional share represented by the number of races on the day of the performance.

(2) If in any calendar quarter insufficient funds are available in each licensee horse racetrack’s special account - unredeemed pari-mutuel tickets administered by the Racing Commission for payments pursuant to subdivision (1) of  this subsection, payments shall be made on a pro rata basis pursuant to paragraphs (A), (B), and (C), subdivision (1), of this subsection of the claims submitted from races won at each horse racetrack.

Once payments on each claim are made, whether in full or on a pro rata basis, no further obligation for payment is created by this subdivision.

Claims received after the deadline are not valid.

(3) If after paying any claims pursuant to this subsection and funds remain in the accounts, those funds shall carry over to the next calendar quarter.

If in any quarter the surplus in either account reaches a balance of $1 million, then that surplus balance shall be placed in to the regular purse fund of that licensee horse racetrack whose unredeemed pari-mutuel account achieves the surplus.

(d) Any unredeemed pari-mutuel tickets received from licensee dog racetracks shall be combined into a single balance and distributed quarterly to the West Virginia Racing Commission Special Account - West Virginia Greyhound Breeding Development Fund:

Provided, That effective July 1, 2020, and thereafter, the balance shall instead be distributed to the State Excess Lottery Revenue Fund pursuant to §19-23-10a of this code.

The deposit made pursuant to this subsection does not create a continuing obligation of payment except to the extent that there are unredeemed pari-mutuel tickets from the licensee dog racetracks.

(e) The amendments to this section made during the 2010 regular legislative session shall become effective July 1, 2010.

(f) The Racing Commission shall satisfy obligations of the prior enactment of this section for all claims received on purses won on or before June 30, 2010.

Claimants must submit all claims on or before July 15, 2010, for verification by the Racing Commission.

Claims received after July 15, 2010, are not valid.

(1) A transfer of $2.5 million from the State Excess Lottery Revenue Fund available on the last day of the fiscal year which began July 1, 2009, shall be made to the nonappropriated fund with the State Treasurer known as the Unredeemed Pari-Mutuel Tickets Fund.

The Racing Commission shall also transfer to the account with the State Treasurer moneys from the Racing Commission Special Accounts - Unredeemed Pari-Mutuel Tickets for deposits received in each of those accounts that have been credited with unredeemed pari-mutuel tickets for races completed at any licensee racetrack as of June 30, 2010, and any other moneys appropriated by the Legislature.

Unredeemed pari-mutuel tickets for races completed after June 30, 2010, must remain in the special accounts - unredeemed pari-mutuel tickets to satisfy future payments pursuant to this section.

(2) The Racing Commission is authorized to pay claims received for races completed on or before June 30, 2010, without regard to date of deposit or date of claim.

Claims shall be paid in date order, with the oldest claims being paid first, until all claims have been satisfied.  All payments made pursuant to this subsection for claims received on purses won on or before June 30, 2010, shall extinguish any further obligation by the state with respect to those claims.

(g) The commission shall submit to the Legislative Auditor a quarterly report and accounting of the income and expenditures in the special account created by this section known as the West Virginia Racing Commission Special Account - Unredeemed Pari-mutuel Tickets.

(h) Nothing contained in this article shall prohibit one person from qualifying for all or more than one of the aforesaid awards or for awards under §19-23-13b of this code.

(i) The cost of publication of the notice provided for in this section shall be paid from the funds in the hands of the State Treasurer collected from the pari-mutuel pools’ tax provided for in §19-23-10 of this code, when not otherwise provided in the budget;

but no such costs shall be paid unless an itemized account thereof, under oath, be first filed with the State Auditor.

(j) The Racing Commission is authorized to promulgate emergency rules, prior to September 1, 2010, to incorporate the revisions to this article enacted during the 2010 regular legislative session.

Part IX.

Disposition of Permit Fees, Registration Fees, and Fines.

§19-23-13c.

Expenditure of racetrack video lottery distribution.

(a) Funds received by the Racing Commission pursuant to §29-22A-10(c)(6) of this code, and §29-22A-10b(a)(5) of this code, after the effective date of this section together with the balance in the bank account previously established by the commission to receive those funds shall be deposited in a banking institution of its choice in a special account to be known as the West Virginia Racing Commission Racetrack Video Lottery Account.

Notice of the amount, date, and place of each deposit shall be given by the Racing Commission, in writing, to the State Treasurer.

(b) Funds in this account shall be allocated and expended as follows:

(1) For each fiscal year, the first $800,000 deposited in the separate account plus the amount then remaining of the June 30, 1997, balance in the separate account previously established for the West Virginia breeders classic under §19-23-13 of this code, shall be used by the commission for promotional activities, advertising, administrative costs, and purses for the West Virginia Thoroughbred Breeders Classic, which shall give equal consideration to all horses qualifying under the West Virginia breeders program for each stake race, based solely on the horses’ sex, age, and earnings.

(2) For each fiscal year, the next $200,000 deposited into the separate account shall be used by the commission for promotional activities and purses for open stake races for a race event to be known as the West Virginia Derby to be held at a thoroughbred racetrack which does not participate in the West Virginia Breeders Classic.

(3) For each fiscal year, once the amounts provided in subdivisions (1) and (2) of this subsection have been deposited into separate bank accounts for use in connection with the West Virginia Thoroughbred Breeders Classics and the West Virginia Derby, the commission shall return to each racetrack all additional amounts deposited which originate during that fiscal year from each respective racetrack pursuant to §29-22A-10(c)(6) of this code, which returned excess funds shall be used as follows:

(A) For each dog racetrack, one half of the returned excess funds shall be used for capital improvements at the racetrack and one half of the returned excess funds shall be deposited into the West Virginia Racing Commission Special Account - West Virginia Greyhound Breeding Development Fund:

Provided, That effective July 1, 2020, and thereafter, the funds required by this paragraph to be deposited in the West Virginia Racing Commission Special Account – West Virginia Greyhound Breeding Development Fund shall instead be deposited in the State Excess Lottery Revenue Fund pursuant to §19-23-10a of this code.

(B) 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, one half of the returned excess funds shall be used for capital improvements at the licensee’s racetrack and one half of the returned excess funds shall be equally divided between the West Virginia Thoroughbred Breeders Classic and the West Virginia Thoroughbred Development Fund.

(C) At those thoroughbred horse racetracks which do not participate in the West Virginia Breeders Classic, one half of the returned excess funds shall be used for capital improvements at the licensee’s racetrack and one half of the returned excess funds shall be used for purses for the open stakes race event known as the West Virginia Derby.

(c) All expenditures that are funded under this section must be approved in writing by the West Virginia Racing Commission before the funds are expended for any of the purposes authorized by this section.

chapter 29.

miscellaneous boards and officers.

article 22.

state lottery act.

§29-22-18a.

State Excess Lottery Revenue Fund.

(a) The State Lottery Fund in the State Treasury which is designated and known as the State Excess Lottery Revenue Fund is continued.

The fund consists of all appropriations to the fund and all interest earned from investment of the fund and any gifts, grants, or contributions received by the fund.

All revenues received under the provisions of §29-22A-10b and §29-22A-10c of this code and under §29-22B-101 et seq.

of this code, except the amounts due the commission under §29-22B-1408(a)(1) of this code, shall be deposited in the State Treasury and placed into the State Excess Lottery Revenue Fund.

The revenue shall be disbursed in the manner provided in this section for the purposes stated in this section and shall not be treated by the State Auditor and the State Treasurer as part of the general revenue of the state.

(b) For the fiscal year beginning July 1, 2002, the commission shall deposit:

(1) $65 million into the subaccount of the State Excess Lottery Revenue Fund hereby created in the State Treasury to be known as the General Purpose Account to be expended pursuant to appropriation of the Legislature;

(2) $10 million into the Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund created in §18C-7-7 of this code;

(3) $19 million into the Economic Development Project Fund created in subsection (e) of this section for the issuance of revenue bonds and to be spent in accordance with the provisions of said subsection;

(4) $20 million into the School Building Debt Service Fund created in §18-9D-6 of this code for the issuance of revenue bonds;

(5) $40 million into the West Virginia Infrastructure Fund created in §31-15A-9 of this code to be spent in accordance with the provisions of said article;

(6) $10 million into the Higher Education Improvement Fund for higher education;

and (7) $5 million into the State Park Improvement Fund for park improvements.

For the fiscal year beginning July 1, 2003, the commission shall deposit:

(1) $65 million into the General Purpose Account to be expended pursuant to appropriation of the Legislature;

(2) $17 million into the Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund created in §18C-7-7 of this code;

(3) $19 million into the Economic Development Project Fund created in subsection (e) of this section for the issuance of revenue bonds and to be spent in accordance with the provisions of said subsection;

(4) $20 million into the School Building Debt Service Fund created in §18-9D-6 of this code for the issuance of revenue bonds;

(5) $40 million into the West Virginia Infrastructure Fund created in §31-15A-9 of this code to be spent in accordance with the provisions of said article;

(6) $10 million into the Higher Education Improvement Fund for higher education;

and (7) $7 million into the State Park Improvement Fund for park improvements.

(c) For the fiscal year beginning July 1, 2004, and subsequent fiscal years through the fiscal year ending June 30, 2009, the commission shall deposit:

(1) $65 million into the General Purpose Account to be expended pursuant to appropriation of the Legislature;

(2) $27 million into the Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund created in §18C-7-7 of this code;

(3) $19 million into the Economic Development Project Fund created in subsection (e) of this section for the issuance of revenue bonds and to be spent in accordance with the provisions of said subsection;

(4) $19 million into the School Building Debt Service Fund created in §18-9D-6 of this code for the issuance of revenue bonds:

Provided, That for the fiscal year beginning July 1, 2008, and subsequent fiscal years, no moneys shall be deposited in the School Building Debt Service Fund pursuant to this subsection and instead $19 million shall be deposited into the Excess Lottery School Building Debt Service Fund;

(5) $40 million into the West Virginia Infrastructure Fund created in §31-15A-9 of this code to be spent in accordance with the provisions of said article;

(6) $10 million into the Higher Education Improvement Fund for higher education;

and (7) $5 million into the State Park Improvement Fund for park improvements.

No portion of the distributions made as provided in this subsection and subsection (b) of this section, except distributions made in connection with bonds issued under subsection (e) of this section, may be used to pay debt service on bonded indebtedness until after the Legislature expressly authorizes issuance of the bonds and payment of debt service on the bonds through statutory enactment or the adoption of a concurrent resolution by both houses of the Legislature.

Until subsequent legislative enactment or adoption of a resolution that expressly authorizes issuance of the bonds and payment of debt service on the bonds with funds distributed under this subsection and subsection (b) of this section, except distributions made in connection with bonds issued under subsection (d) of this section, the distributions may be used only to fund capital improvements that are not financed by bonds and only pursuant to appropriation of the Legislature.

(d) For the fiscal year beginning July 1, 2009, and subsequent fiscal years, the commission shall deposit:

(1) $65 million into the General Purpose Account to be expended pursuant to appropriation of the Legislature;

(2) $29 million into the Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund created in §18C-7-7 of this code;

(3) $19 million into the Economic Development Project Fund created in subsection (e) of this section for the issuance of revenue bonds and to be spent in accordance with the provisions of said subsection;

(4) $19 million into the Excess Lottery School Building Debt Service Fund created in §18-9D-6 of this code;

(5) $40 million into the West Virginia Infrastructure Fund created in §31-15A-9 of this code to be spent in accordance with the provisions of said article;

(6) $10 million into the Higher Education Improvement Fund for higher education;

and (7) $5 million into the State Park Improvement Fund for park improvements.

No portion of the distributions made as provided in this subsection and subsection (b) of this section, except distributions made in connection with bonds issued under subsection (e) of this section, may be used to pay debt service on bonded indebtedness until after the Legislature expressly authorizes issuance of the bonds and payment of debt service on the bonds through statutory enactment or the adoption of a concurrent resolution by both houses of the Legislature.

Until subsequent legislative enactment or adoption of a resolution that expressly authorizes issuance of the bonds and payment of debt service on the bonds with funds distributed under this subsection and subsection (b) of this section, except distributions made in connection with bonds issued under subsection (e) of this section, the distributions may be used only to fund capital improvements that are not financed by bonds and only pursuant to appropriation of the Legislature.

(e) The Legislature finds and declares that in order to attract new business, commerce, and industry to this state, to retain existing business and industry providing the citizens of this state with economic security, and to advance the business prosperity of this state and the economic welfare of the citizens of this state, it is necessary to provide public financial support for constructing, equipping, improving, and maintaining economic development projects, capital improvement projects, and infrastructure which promote economic development in this state.

(1) The West Virginia Economic Development Authority created and provided for in §31-15-1 et seq.

of this code shall, by resolution, in accordance with the provisions of this article and §31-15-1 et seq.

of this code, and upon direction of the Governor, issue revenue bonds of the Economic Development Authority in no more than two series to pay for all or a portion of the cost of constructing, equipping, improving, or maintaining projects under this section or to refund the bonds at the discretion of the authority.

Any revenue bonds issued on or after July 1, 2002, which are secured by state excess lottery revenue proceeds shall mature at a time or times not exceeding 30 years from their respective dates.

The principal of and the interest and redemption premium, if any, on the bonds shall be payable solely from the special fund provided in this section for the payment.

(2) The special revenue fund named the Economic Development Project Fund into which shall be deposited the amounts to be deposited in the fund as specified in subsections (b), (c), and (d) of this section is continued.

The Economic Development Project Fund shall consist of all such moneys, all appropriations to the fund, all interest earned from investment of the fund, and any gifts, grants, or contributions received by the fund.

All amounts deposited in the fund shall be pledged to the repayment of the principal, interest, and redemption premium, if any, on any revenue bonds or refunding revenue bonds authorized by this section, including any and all commercially customary and reasonable costs and expenses which may be incurred in connection with the issuance, refunding, redemption, or defeasance of the bonds.

The West Virginia Economic Development Authority may further provide in the resolution and in the trust agreement for priorities on the revenues paid into the Economic Development Project Fund that are necessary for the protection of the prior rights of the holders of bonds issued at different times under the provisions of this section.

The bonds issued pursuant to this subsection shall be separate from all other bonds which may be or have been issued, from time to time, under the provisions of this article.

(3) After the West Virginia Economic Development Authority has issued bonds authorized by this section and after the requirements of all funds have been satisfied, including any coverage and reserve funds established in connection with the bonds issued pursuant to this subsection, any balance remaining in the Economic Development Project Fund may be used for the redemption of any of the outstanding bonds issued under this subsection which, by their terms, are then redeemable for the purchase of the outstanding bonds at the market price, but not to exceed the price, if any, at which redeemable, and all bonds redeemed or purchased shall be immediately canceled and shall not again be issued.

(4) Bonds issued under this subsection shall state on their face that the bonds do not constitute a debt of the State of West Virginia;

that payment of the bonds, interest, and charges thereon cannot become an obligation of the State of West Virginia;

and that the bondholders’ remedies are limited in all respects to the Special Revenue Fund established in this subsection for the liquidation of the bonds.

(5) The West Virginia Economic Development Authority shall expend the bond proceeds from the revenue bond issues authorized and directed by this section for projects certified under the provision of this subsection:

Provided, That the bond proceeds shall be expended in accordance with the requirements and provisions of §21-5A-1 et seq.

of this code and either §5-22-1 et seq.

or §5-22A-1 et seq.

of this code, as the case may be:

Provided, however, That if the bond proceeds are expended pursuant to §5-22A-1 et seq.

of this code and if the Design-Build Board created under said article determines that the execution of a design-build contract in connection with a project is appropriate pursuant to the criteria set forth in said article and that a competitive bidding process was used in selecting the design builder and awarding the contract, the determination shall be conclusive for all purposes and shall be considered to satisfy all the requirements of said article.

(6) For the purpose of certifying the projects that will receive funds from the bond proceeds, a committee is hereby established and comprised of the Governor, or his or her designee, the Secretary of the Department of Revenue, the Executive Director of the West Virginia Development Office, and six persons appointed by the Governor:

Provided, That at least one citizen member must be from each of the state’s three congressional districts.

The committee shall meet as often as necessary and make certifications from bond proceeds in accordance with this subsection.

The committee shall meet within 30 days of the effective date of this section.

(7) Applications for grants submitted on or before July 1, 2002, shall be considered refiled with the committee.

Within 10 days from the effective date of this section, as amended in the year 2003, the lead applicant shall file with the committee any amendments to the original application that may be necessary to properly reflect changes in facts and circumstances since the application was originally filed with the committee.

(8) When determining whether or not to certify a project, the committee shall take into consideration the following:

(A) The ability of the project to leverage other sources of funding;

(B) Whether funding for the amount requested in the grant application is or reasonably should be available from commercial sources;

(C) The ability of the project to create or retain jobs, considering the number of jobs, the type of jobs, whether benefits are or will be paid, the type of benefits involved, and the compensation reasonably anticipated to be paid persons filling new jobs or the compensation currently paid to persons whose jobs would be retained;

(D) Whether the project will promote economic development in the region and the type of economic development that will be promoted;

(E) The type of capital investments to be made with bond proceeds and the useful life of the capital investments;

and (F) Whether the project is in the best interest of the public.

(9) A grant may not be awarded to an individual or other private person or entity.

Grants may be awarded only to an agency, instrumentality, or political subdivision of this state or to an agency or instrumentality of a political subdivision of this state.

The project of an individual or private person or entity may be certified to receive a low-interest loan paid from bond proceeds.

The terms and conditions of the loan, including, but not limited to, the rate of interest to be paid and the period of the repayment, shall be determined by the Economic Development Authority after considering all applicable facts and circumstances.

(10) Prior to making each certification, the committee shall conduct at least one public hearing, which may be held outside of Kanawha County.

Notice of the time, place, date, and purpose of the hearing shall be published in at least one newspaper in each of the three congressional districts at least 14 days prior to the date of the public hearing.

(11) The committee may not certify a project unless the committee finds that the project is in the public interest and the grant will be used for a public purpose.

For purposes of this subsection, projects in the public interest and for a public purpose include, but are not limited to:

(A) Sports arenas, fields, parks, stadiums, and other sports and sports-related facilities;

(B) Health clinics and other health facilities;

(C) Traditional infrastructure, such as water and wastewater treatment facilities, pumping facilities, and transmission lines;

(D) State-of-the-art telecommunications infrastructure;

(E) Biotechnical incubators, development centers, and facilities;

(F) Industrial parks, including construction of roads, sewer, water, lighting, and other facilities;

(G) Improvements at state parks, such as construction, expansion, or extensive renovation of lodges, cabins, conference facilities, and restaurants;

(H) Railroad bridges, switches, and track extension or spurs on public or private land necessary to retain existing businesses or attract new businesses;

(I) Recreational facilities, such as amphitheaters, walking and hiking trails, bike trails, picnic facilities, restrooms, boat docking and fishing piers, basketball and tennis courts, and baseball, football, and soccer fields;

(J) State-owned buildings that are registered on the National Register of Historic Places;

(K) Retail facilities, including related service, parking and transportation facilities, appropriate lighting, landscaping, and security systems to revitalize decaying downtown areas;

and (L) Other facilities that promote or enhance economic development, educational opportunities, or tourism opportunities thereby promoting the general welfare of this state and its residents.

(12) Prior to the issuance of bonds under this subsection, the committee shall certify to the Economic Development Authority a list of those certified projects that will receive funds from the proceeds of the bonds.

Once certified, the list may not thereafter be altered or amended other than by legislative enactment.

(13) If any proceeds from sale of bonds remain after paying costs and making grants and loans as provided in this subsection, the surplus may be deposited in an account in the State Treasury known as the Economic Development Project Bridge Loan Fund administered by the Economic Development Authority created in §31-15-1 et seq.

of this code.

Expenditures from the fund are not authorized from collections but are to be made only in accordance with appropriation by the Legislature and in accordance with the provisions of §12-3-1 et seq.

of this code and upon fulfillment of the provisions of §5A-2-1 et seq.

of this code.

Loan repayment amounts, including the portion attributable to interest, shall be paid into the fund created in this subdivision.

(f) If the commission receives revenues in an amount that is not sufficient to fully comply with the requirements of subsections (b), (c), (d), (i), and (m) of this section, the commission shall first make the distribution to the Economic Development Project Fund;

second, make the distribution or distributions to the other funds from which debt service is to be paid;

third, make the distribution to the Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund;

and fourth, make the distribution to the General Purpose Account:

Provided, That, subject to the provisions of this subsection, to the extent the revenues are not pledged in support of revenue bonds which are or may be issued, from time to time, under this section, the revenues shall be distributed on a pro rata basis.

(g) Each fiscal year, the commission shall, after meeting the requirements of subsections (b), (c), (d), (i), and (m) of this section and after transferring to the State Lottery Fund created under §29-22-18 of this code an amount equal to any transfer from the State Lottery Fund to the Excess Lottery Fund pursuant to §29-22-18(f) of this code, deposit 50 percent of the amount by which annual gross revenue deposited in the State Excess Lottery Revenue Fund exceeds $225 million in a fiscal year in a separate account in the State Lottery Fund to be available for appropriation by the Legislature.

(h) When bonds are issued for projects under subsections (d) and (e) of this section or for the School Building Authority, infrastructure, higher education, or park improvement purposes described in this section that are secured by profits from lotteries deposited in the State Excess Lottery Revenue Fund, the Lottery Commission Director shall allocate first to the Economic Development Project Fund an amount equal to one tenth of the projected annual principal, interest, and coverage requirements on any and all revenue bonds issued, or to be issued as certified to the Lottery Commission Director;

and second, to the fund or funds from which debt service is paid on bonds issued under this section for the School Building Authority, infrastructure, higher education, and park improvements an amount equal to one tenth of the projected annual principal, interest, and coverage requirements on any and all revenue bonds issued, or to be issued as certified to the Lottery Commission Director.

In the event there are insufficient funds available in any month to transfer the amounts required pursuant to this subsection, the deficiency shall be added to the amount transferred in the next succeeding month in which revenues are available to transfer the deficiency.

(i) Prior to the distributions provided in subsection (d) of this section, the Lottery Commission shall deposit into the General Revenue Fund amounts necessary to provide reimbursement for the refundable credit allowable under §11-21-21 of this code.

(j)(1) The Legislature considers the following as priorities in the expenditure of any surplus revenue funds:

(A) Providing salary and/or increment increases for professional educators and public employees;

(B) Providing adequate funding for the Public Employees Insurance Agency;

and (C) Providing funding to help address the shortage of qualified teachers and substitutes in areas of need, both in number of teachers and in subject matter areas.

(2) The provisions of this subsection may not be construed by any court to require any appropriation or any specific appropriation or level of funding for the purposes set forth in this subsection.

(k) The Legislature further directs the Governor to focus resources on the creation of a prescription drug program for senior citizens by pursuing a Medicaid waiver to offer prescription drug services to senior citizens;

by investigating the establishment of purchasing agreements with other entities to reduce costs;

by providing discount prices or rebate programs for seniors;

by coordinating programs offered by pharmaceutical manufacturers that provide reduced cost or free drugs;

by coordinating a collaborative effort among all state agencies to ensure the most efficient and cost-effective program possible for the senior citizens of this state;

and by working closely with the state’s congressional delegation to ensure that a national program is implemented.

The Legislature further directs that the Governor report his or her progress back to the Joint Committee on Government and Finance on an annual basis until a comprehensive program has been fully implemented.

(l) After all of the expenditures in subsections (a) through (i), inclusive, of this section have been satisfied in any fiscal year, the next $2 million shall be distributed as follows:

(1) On the last day of the fiscal year that begins on July 1, 2010, and for each fiscal year thereafter, percent shall be placed in the general purse fund of a thoroughbred racetrack licensee that did not participate in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992, for payment of regular purses;

(2) Forty-three and one-half percent shall be distributed to the Racing Commission Special Account — Unredeemed Pari-mutuel Tickets, established on behalf of a thoroughbred racetrack licensee that did participate in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992;

(3) Five and one-half percent shall be distributed to the Racing Commission Special Account — Unredeemed Pari-mutuel Tickets, established on behalf of a thoroughbred racetrack licensee that did not participate in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992;

and (4) Five percent shall be distributed to the Racing Commission Special Account – Greyhound Breeding Development Fund:

Provided, That effective July 1, 2020, and thereafter, the amount required by this subdivision to be distributed to the West Virginia Greyhound Breeding Development Fund shall remain in the State Excess Lottery Revenue Fund.

(m) For the fiscal year beginning July 1, 2019, and subsequent fiscal years, the commission shall deposit $11 million to be distributed into the special funds established by the respective licensees and used for the payment of regular purses in addition to the other amounts provided in §19-23-1 et seq.

of this code;

such distribution shall be on a pro rata basis based upon the actual purse earnings of each such licensee as specified in §29-22A-10(c)(2) and §29-22A-10b(a)(2) of this code.

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 §29-22-1 et seq.

of this code.

(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.

“Employees of the licensed racing association” means a person or persons employed to work at a facility by an employer, or employer’s predecessors or successors, that was licensed to conduct greyhound racing as a “pari-mutual racing facility”, “licensed racetrack”, “racetrack”, or racing association” prior to January 1, 1994.

(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 §19-23-1 et seq.

of this code permitting the racetrack to operate video lottery terminals authorized by the commission:

Provided, That effective July 1, 2020, and thereafter, “license” or “video lottery license” also means authorization granted pursuant to said article to a racetrack which was licensed to conduct greyhound racing meetings prior to January 1, 1994.  (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 §19-23-1 et seq.

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 220 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 §19-23-12b of this code: