The bill amends sections 29-22A-10 and 29-22A-10b of the Code of West Virginia to enhance the distribution of net terminal income from racetrack video lottery operations to municipalities and counties. A key feature of the bill is the creation of a Licensed Racetrack Modernization Fund, which will receive deposits based on net terminal income, enabling licensed racetracks to recover funds for facility modernization improvements. For every $2 spent on eligible improvements, racetracks will receive $1 back from their modernization account, contingent upon retaining video lottery terminals for a minimum of five years. The bill also details the allocation of net terminal income to various funds, including the State Lottery Fund and specific distributions for employee pensions and veterans' memorials, while imposing penalties for racetracks that do not maintain required account balances.

Additionally, the bill allows licensed racetracks to request additional reports on play transactions and marketing information from the commission, which may charge a reasonable fee for these services. The commission is empowered to examine all financial records related to the racetracks and is responsible for ensuring compliance with the new regulations, including resolving discrepancies in reported income. The bill specifies how excess net terminal income will be distributed among various entities, including local counties and municipalities, and outlines changes to specific distributions after certain dates, such as the reduction of the percentage allocated for regular purses after July 1, 2005. Overall, the legislation aims to create a structured and equitable framework for the distribution of funds generated from video lottery terminals at racetracks.

Statutes affected:
Introduced Version: 29-22A-10, 29-22A-10b
Committee Substitute: 29-22A-10, 29-22A-10b
Engrossed Committee Substitute: 29-22A-10, 29-22A-10b
Enrolled Committee Substitute: 29-22A-10, 29-22A-10b