This bill amends the Code of West Virginia to modify the percentage of gross terminal income that the Lottery Commission deposits into the State Lottery Fund for administrative costs. Currently, the commission deposits a flat rate of 2% of gross terminal income. The new provisions, effective July 1, 2026, will adjust this percentage based on the gross terminal income from the preceding fiscal year. Specifically, if the gross terminal income is between $0 and $300 million, the commission will continue to deposit 2%; if it is between $300 million and $400 million, the deposit will be reduced to 1.5%; and if it exceeds $400 million, the deposit will be further reduced to 1%.

Additionally, the bill includes a provision that allows for the accumulation of surplus funds generated from the administrative costs, with a cap of $250,000. Any surplus exceeding this amount must be reported to the Joint Committee on Government and Finance and remitted to the State Treasurer. The bill also clarifies the calculation of gross profits and the distribution of net terminal income, ensuring that local counties and municipalities receive their respective shares from the net terminal income generated by limited video lottery terminals. Overall, the bill aims to create a more flexible funding structure for the State Lottery Fund based on the performance of gross terminal income.

Statutes affected:
Introduced Version: 29-22B-1408