Changing distribution of income from excess lottery fund
Summary
SB75 revises how certain lottery-related revenues are distributed in West Virginia, specifically revenues from racetrack video lottery and racetrack table games. The bill redirects portions of net terminal income and adjusted gross receipts that would otherwise flow to various statutory recipients into the State Excess Lottery Revenue Fund, where they are then spent only through legislative appropriation. It also preserves priority for debt service payments tied to the lottery fund before any other appropriated distributions are made.
The bill also continues provisions that allow the Governor, under specified conditions, to redirect some of these revenues to the General Revenue Fund by executive order until the state’s workers’ compensation “Old Fund” unfunded liability has been fully paid or provided for, as certified by an independent actuary. In effect, the measure updates and reenacts existing distribution rules while maintaining the state’s ability to use excess lottery proceeds for budget support and debt-related obligations.
Impact
SB75 amends West Virginia Code §§29-22A-10d, 29-22A-10e, and 29-22C-27a, changing the statutory distribution formulas for racetrack video lottery and racetrack table games revenues. It reduces certain mandated distributions by 100 percent, routes those amounts into the State Excess Lottery Revenue Fund, and requires expenditures from that fund to be made by appropriation, after debt service obligations are satisfied. The bill affects the flow of lottery proceeds to existing beneficiaries, including funds tied to workers’ compensation debt reduction and other statutory recipients, and preserves executive authority to redirect some revenues to general revenue under the conditions stated in the code.
Sentiment
The bill appears to have received generally favorable treatment overall, passing the Senate 23-9 and the House 69-28 after a failed House motion to reject it. The vote margins suggest meaningful support but also notable opposition, indicating the measure was not unanimous or broadly uncontested. No committee transcript was provided, so the available record reflects support strong enough for passage but with a clear minority of legislators opposed.
Contention
The main point of contention is the reallocation of lottery revenues away from existing statutory recipients and into the State Excess Lottery Revenue Fund, which gives the Legislature greater discretion over spending but reduces automatic distributions. Another likely source of disagreement is the continued authority for the Governor to redirect some revenues to General Revenue Fund under certain fiscal conditions, which can be viewed either as a budget tool or as a diversion from dedicated funds. The recorded opposition in both chambers suggests concern over fiscal priorities, the impact on affected funds, and the use of lottery proceeds for general budget needs rather than their prior earmarked purposes.
Expiring funds to the unappropriated surplus balance in the State Fund, General Revenue, from the Department Revenue, State Budget Office, PEIA Rainy Day Fund