HB4601 SUB

COMMITTEE SUBSTITUTE
FOR
H. B. 4601
(By Delegates Farris, Sorah,
Houvouras and Mezzatesta)

(Originating in the House Committee on the Judiciary)

[March 1, l994]

A BILL to amend chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article twenty-four, relating to authorizing vessel and casino gaming; providing generally therefor; stating legislative findings relating to state ownership, operation, regulation and control of the gambling games; defining certain terms; declaring gaming and wagering legal when conducted under terms specified in article; stating that article does not apply to racing, lottery or activities regulated by article twenty of chapter forty-seven; establishing state commission on vessel and casino gaming and providing generally therefor; setting forth composition, qualifications, terms, compensation, reimbursement, oath and bond of commission; allowing governor to designate chair; setting forth meeting requirements; providing for appointment of executive director and providing generally therefor; stating duties and compensation of executive director; providing for appointment of staff; setting forth commission powers and duties; providing for the adoption of regulation and requiring certain regulations; providing for the coordination and cost of law enforcement activities; extending jurisdiction of local law enforcement in stated circumstances; requiring local approval of gaming activities; providing for local control in certain matters relating to hours or operation and gambling while temporarily docked; allowing local governing body to approve applicant being awarded license within stated time limitations; requiring licenses in itemized areas; providing generally for license to operate casino; stating number of gaming vessel and casino licenses; stating qualifications and requirements for gaming vessel and casino licenses; itemizing areas for commission to consider in granting licenses; giving preference to racing facilities; requiring racing facilities granted license to maintain stated minimum of live racing; requiring investigation of applicants for gaming vessel or casino license; requiring licensee to execute surety bond and providing generally therefor; stating authorization of license and prohibiting transfer, assignment, sale or pledge as collateral; requiring audits and inventories; providing penalty for non-operation of casino license; stating specific requirements regarding construction of gaming vessel and shore construction; setting forth specific employment requirements, including percentage of state residents and full-time employment, minimum wage, health insurance and licenses; requiring recognition of labor organization under certain circumstances; requiring licensees' annual reports and itemizing various inclusions; defining licensees' records as public records; requiring license for supplier of gaming vessel and casino and providing generally therefor, including investigation requirement; requiring license for gaming device operator and providing generally therefor, including background information and investigation requirement; requiring license for gaming vessel or casino employees and providing generally therefor, including background information and investigation requirement; setting forth annual license fee for all licenses; providing that all licenses consent to warrantless searches of person, personal property and certain premises under control of licensee; setting forth additional license requirements and prohibitions; describing license and requiring display thereof; providing for expiration and renewal every five years; stating renewal fee for all licenses; providing for license denial, revocation and reprimand subsequent to hearing thereon; providing generally for such hearings; setting forth navigable waterways where vessel gaming may be conducted; restricting hours of operation; allowing consumption of alcohol on licensed premises during certain hours notwithstanding laws to the contrary; prohibiting vessel gaming while vessel is temporarily docked; allowing gaming while docked under stated circumstances within discretion of captain; requiring reporting of captain-ordered docking and restricting total hours of operation in which vessel may be docked; requiring admission fee with stated exception; designating fee be used for local law enforcement and municipal services; requiring patrons to show identification; requiring records of residence of patrons; requiring patrons to consent to law enforcement presence; allowing gaming operators to set wagers; requiring use of licensed suppliers; imposing state and local tax on adjusted gross receipts; imposing occupation tax on casinos; providing for higher tax percentage based on prevalence of state patronage; providing generally for filing and payment of taxes; creating state gaming fund; providing for distribution of state tax, including for higher education; establishing "future corps" scholarship program for public and community workers and providing generally therefor; requiring that fifty percent of the local tax be used for improvement to local infrastructure; prohibiting licensed persons for making political contributions and stating penalty for offense; prohibiting defrauding devices as itemized; prohibiting unauthorized representation as licensee or licenseholder; setting forth prohibitions and requirements as to conduct of wagering; itemizing numerous misdemeanor and felony offenses and stating penalty of offense; authorizing for forfeiture of certain property; prohibiting participation in gaming by certain individuals under certain circumstances; providing for civil penalties; and providing for severability in event any provision held invalid.

Be it enacted by the Legislature of West Virginia:

That chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article twenty-four, to read as follows:

ARTICLE 24. VESSEL AND CASINO GAMING.

§ 29-24-1. Vessel and casino gaming authorized; findings.

Vessel and casino gaming and the system of wagering incorporated in vessel and casino gaming is authorized to the extent it is conducted as provided in this article.

The Legislature finds and declares that the state can own the gambling games and gaming devices authorized to be played on gaming vessels and in casinos in accordance with the provisions of this article by possessing a proprietary interest in the rules of the gambling games through outright ownership or through an exclusive license agreement with the owner of the gambling games, which license is nontransferable.
The Legislature further finds and declares that the state can operate such games and exercise its ownership thereof by permitting the operation of such games in gaming facilities which are licensed, regulated and controlled by the state pursuant to this act.
The Legislature further finds and declares that the state can exercise regulation and control of such games through enforcement of this article, along with continuous monitoring of the gaming activities occurring at any licensed gaming vessel or casino by an employee or employees of the commission. Such monitoring may be by direct observation, by electronic means, or by any other means necessary to assure compliance with the terms of this article.

§ 29-24-2 . Definitions.

As used in this article unless the context otherwise requires, the following words and phrases shall have the meanings indicated.

(1) "Casino" means a designated area on the premises of a resort hotel which is used for authorized and licensed casino gaming.
(2) "Commission" means the state commission on vessel and casino gaming, created and authorized by this article.
(3) "Controlling interest" means:
(A) For a partnership, an interest as a general or limited partner;
(B) For a corporation, an interest of more than fifty percent of the stock in the corporation; and
(C) For any other entity, an ownership interest of more than fifty percent in the entity.
(4) "Adjusted gross receipts" means the gross receipts less winnings paid to wagerers.
(5) "Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens or electronic cards by patrons of a gaming vessel or casino owned by a licensed gaming vessel or casino operator.
(6) "Gambling game" means any of the following, or a variation or combination thereof:
(A) Baccarat.
(B) Twenty-one.
(C) Poker.
(D) Craps.
(E) Slot machine.
(F) Video games of chance.
(G) Roulette wheel.
(H) Klondike table.
(I) Punchboard.
(J) Faro layout.
(K) Keno layout.
(L) Numbers ticket.
(M) Push card.
(N) Jar ticket.
(O) Pull tab.
(P) Big six.
(7) "Gaming" means the operation or playing of a gaming device for which a prize is awarded.
(8) "Gaming device" means a slot machine, paddle wheel, wheel of fortune, chance book, cards, dice, or other mechanism or strategy for playing a gambling game.
(9) "Applicant" means an individual applying for a license.
(10) "License" means a license issued by the commission, including:
(A) A license to operate a gaming vessel or casino;
(B) A license to operate a gaming device; or
(C) A license to supply a gaming vessel or casino.
(11) "Licensee" means a licensed gaming vessel operator or a licensed casino operator.
(12) "Licenseholder" means a licensed gaming vessel or casino supplier, a licensed gaming device operator, or a licensed employee of a gaming vessel or casino.
(13) "Licensed gaming device operator" means an individual who is licensed by the commission to engage in the business of operating a gaming device, either as an employee or independent contractor of a licensed gaming vessel or casino operator.
(14) "Licensed gaming vessel or casino supplier" means a person who is licensed by the commission to engage in the business of supplying gaming supplies to a gaming vessel or casino.
(15) "Gaming vessel or casino employee" means any individual employed by a licensed gaming vessel or casino operator.
(16) "Vessel" or "gaming vessel" means a self propelled excursion vessel that is used for authorized and licensed vessel gaming, which meets all federal and state passenger safety and navigation requirements.
(17) "Dock" means the location where a gaming vessel moors for the purpose of embarking and disembarking passengers.
(18) "State gaming fund" means a special fund in the state treasury created in section thirty-five of this article to which deposits and disbursements are made and from which the operating costs of the commission will be disbursed and for other activities as proscribed pursuant to this article.
(19) "Person" means any natural person, corporation, association, partnership, limited partnership or other entity, regardless of its forms, structure or nature.
§ 29-24-3. Scope of provisions.
(a) Notwithstanding any provision of law to the contrary, the system of vessel and casino gaming and wagering as provided by this article is legal when conducted under the terms specified by this article.
(b) This article does not apply to the parimutuel system of wagering used or intended to be used in connection with the horse-race or dog-race meeting as authorized under article twenty-three, chapter nineteen of this code; lottery or lotto games authorized under article twenty-two of this chapter; or bingo, raffles, or games of skill or chance authorized under article twenty, chapter forty-seven of this code.
§ 29-24-4. Establishment of commission.
There is hereby established within the department of tax and revenue an independent, self-sustaining state commission on vessel and casino gaming which shall have the powers and duties specified in this article and all other powers necessary and proper to fully and effectively execute this article for the purposes of administering, regulating, overseeing and enforcing the system of vessel and casino gaming established by this article. Its jurisdiction shall extend to every person involved in vessel gaming operations in this state.
While the commission is self-sustaining and independent, it, its members, its executive director and its employees are subject to article nine-a of chapter six; to chapter six-b; to chapter twenty-nine-a of this code; and chapter twenty-nine-b.

§ 29-24-5. Composition; qualifications; terms; compensation; reimbursement; oath and bond.

(a) Composition. -- The commission shall consist of five members to be appointed by the governor, with the advice and consent of the Senate. No more than three members of the commission shall belong to the same political party:

(1) One member shall be a lawyer licensed to practice law in the state;
(2) One member shall be a certified public accountant experienced in taxation, accounting and auditing;
(3) One member shall have at least five years experience in law enforcement and criminal investigation;
(4) One member shall be representative of the tourism and hospitality industry;
(5) One member shall be a representative of the public at large.
(b) Qualifications. -- Each member shall have appropriate qualifications to ensure the provisions of the article are exercised to the full extent authorized. Thus, each member:
(1) Shall be a citizen of the United States, a resident of the state of West Virginia and at least twenty-one years of age;
(2) Shall have knowledge of the practice, procedure and principles of gaming operations;
(3) Shall be of good moral character;
(4) May not be a licensee or licenseholder, or spouse, child or parent of a licensee or licenseholder, or otherwise be subject to the regulation of the commission, or be a member or subject to the regulation of the West Virginia Racing Commission or the West Virginia Lottery Commission;
(5) May not have a financial interest in any activity regulated by the commission or receive compensation from a person regulated by the commission;
(6) May not be a staff member of the commission nor receive compensation from a person who was or is a member of the commission;
(7) May not hold any other public office for which compensation is received;
(8) May not have been convicted of, or under indictment for, a felony under the laws of this state, another state, a territory of the United States, the United States or any foreign country; and
(9) Must provide the commission with fingerprints and any other relevant material requested to assist in a thorough background investigation, which shall be undertaken by a representative of a state or federal law enforcement agency or a qualified private security agency that the commission designates in order that a thorough background investigation is completed
(c) Terms. -- The terms and conditions of the commission shall be pursuant to the provisions under this subsection.
(1) The term of each member of the commission made pursuant to this section shall be for four years, except that for an initial period, the terms of office of the initial commission will commence from the initial date of appointment and run as follows:
(A) One member for a term ending on the first day of July, one thousand nine hundred ninety-six;
(B) Two members for a term ending on the first day of July, one thousand nine hundred ninety-seven; and
(C) Two members for a term ending on the first day of July, one thousand nine hundred ninety-eight.
(2) After the initial appointments, all members shall be appointed for terms of four years from the expiration date of the previous term: Provided, That no member shall serve more than two terms, including the initial term.
(3) Appointments to fill vacancies on the commission shall be for the unexpired term of the member to be replaced.
(4) At the end of the maximum period in which a member can serve, the member shall continue to serve until a successor is appointed and qualifies, but no longer than one hundred eighty calendar days.
(5) The governor may remove any commission member for cause, incompetence or misconduct, notwithstanding the provisions of section four, article six, chapter six of this code.
(d) Compensation. -- Each member of the commission shall receive one hundred dollars for each day or portion thereof spent in the discharge of his or her official duties. All such payments shall be made from the state gaming fund.
(e) Reimbursement. -- Each member of the commission shall be reimbursed for all actual and necessary expenses and disbursements involved in the execution of official duties. All such payments shall be made from the state gaming fund.
(f) Oath and bond. -- Before entering upon the discharge of the duties as commissioner, each commissioner shall:
(1) Take and subscribe to the oath of office prescribed in section five, article four of the constitution of West Virginia; and
(2) Enter into a bond the penal sum of one hundred thousand dollars with a corporate surety authorized to engage in business in this state, conditioned upon the faithful discharge and performance of the duties of the office. The executed oath and bond shall be filed in the office of the secretary of state.
§ 29-24-6 . Commission chair.
The governor shall designate a chairperson from among the members of the commission. The term of the chairperson is three years. The chairperson may not serve more than two consecutive terms as chairperson.
§ 29-24-7. Meeting requirements.
The commission shall initiate operation of the commission on a continuous basis at the earliest and most practicable time, and under the following conditions:
(1) The commission shall meet within the state at least once every three months.
(2) Three members of the commission constitute a quorum for the transaction of any business and for the performance of any duty.
(3) A majority vote of the members present shall be required for any final determination by the commission.
(4) The commission may elect to meet in executive session after an affirmative vote of a majority of its members present in accordance with section four, article nine-a, chapter six of this code.
(5) The commission shall keep a complete and accurate record of all its meetings in accordance with section five, article nine-a, chapter six of this code.

§ 29-24-8. Appointment of executive director; duties; compensation.

(a) Appointment. -- There is hereby created the position of commission executive director whose duties include the management and administration of the state's vessel and casino gaming regulation office. The executive director shall:

(1) Be appointed by the commission within sixty days after the appointment of the initial slate of commission members;
(2) Serve at the pleasure of the commission, and shall not be replaced unless three commission members vote in the affirmative;
(3) Serve on a full-time basis and shall not engage in any other profession or occupation, including the holding of a political office in the state either by election or appointment, while serving as executive director;
(4) Be of good repute, particularly in the areas of honesty and integrity and shall favorably pass a thorough background investigation, including finger printing and criminal investigation, prior to appointment;
(5) Not be a licensee or licenseholder, or spouse, child or parent of a licensee or licenseholder, or otherwise be subject to the regulation of the commission, or be a member of or subject to the regulation of the West Virginia Racing Commission or the West Virginia Lottery Commission; and
(6) Not have a financial interest in any activity regulated by or receive compensation from a person regulated by the commission.
(b) Duties. -- The duties of the executive director shall encompass the following:
(1) Direct and administer the daily operations of the commission;
(2) Collect the taxes and fees imposed under this article or regulations adopted by the commission;
(3) Keep the records and papers of the commission, including a record of each proceeding;
(4) Administer the licensing of individuals who work in connection with vessel and casino gaming;
(5) Prepare, issue and submit reports of the commission;
(6) Perform any other duty that the commission directs.
(c) Compensation. -- All payments to the executive director shall be made from the state gaming fund. The executive director is entitled to:
(1) A reasonable and competitive compensation package to be established by the commission; and
(2) Reimbursement for expenses under the standard state travel regulations.

§ 29-24-9. Appointment of commission staff; conditions of employment.

(a) Appointment of staff. -- With the approval of the commission, the executive director shall appoint such professional, clerical, technical and administrative personnel, who shall be state employees hired in accordance with article six, chapter twenty-nine of this code, as may be necessary to carry out the provisions of this article. No employee of the commission shall hold an official relation to or hold any financial interest in connection with a person licensed under this article or any other gaming enterprise or business, including the West Virginia Racing Commission or the West Virginia Lottery Commission.

(b) Conditions of employment. -- As a condition of employment with the commission, each employee of the commission shall provide the commission with the individual's fingerprints and any other relevant material requested to assist in a thorough background investigation. The fingerprints and any other relevant material shall be taken by a representative of a state or federal law enforcement agency or a qualified private security agency that the commission designates in order that a thorough background investigation is completed.

§ 29-24-10. Commission powers and duties.

(a) Powers. -- In addition to the powers set forth elsewhere in this article, the commission may:

(1) Sue to enforce any provision of this article by injunction;
(2) Issue a subpoena for the attendance of a witness to testify and to produce evidence;
(3) Administer oaths;
(4) Enter or investigate the gaming vessel or casino of a licensed gaming vessel or casino operator to ensure that the regulations of the commission are strictly complied with;
(5) Place a professionally qualified individual on the gaming vessel or casino operated by a licensed gaming vessel or casino operator for the purpose of investigation and operational accounting as deemed appropriate by the commission;
(6) Subject to the state's requirements for fair hearing, require that an employee or official of a licensed gaming vessel or casino operator be removed from the job;
(7) Eject or exclude, or authorize the ejection or exclusion of, any person from a gaming vessel or casino if the person is in violation of this article or any regulation adopted under this article or interferes with the orderly conduct of vessel gaming; and
(8) Exercise such other powers as may be necessary to effectuate the provisions of this article.
(b) Duties. -- In addition to the duties set forth elsewhere in this article, the commission shall:
(1) Adopt regulations to implement the provisions of this article in accordance with the provisions of chapter twenty-nine-a;
(2) Investigate applicants and determine the eligibility of applicants for a license and select among competing applicants for a license the applicant which best serves the interests of the citizens of West Virginia;
(3) Issue all licenses, including licenses for gaming device operators;
(4) Control, own and operate all gambling games approved by the commission to be played in licensed gaming vessels or casinos by acquiring a proprietary interest or exclusive license in the rules of the gambling games and by continuous monitoring of gaming activities at all licensed gaming facilities;
(5) Identify gaming devices within the vessel or casino gaming operation which require licensed operators, and adopt standards for licensing gaming device operators;
(6) Charge such fees for the issuance, operation and renewal of licenses as may be authorized, required or specified in this article and to receive, accept and pay all fees collected under this article into the state gaming fund;
(7) Keep a list of all gaming device operators, gaming vessel and casino operators, and gaming vessel and casino suppliers who are currently licensed;
(8) Keep a record of all commission proceedings available for public inspection;
(9) Require that a gaming device operator, gaming vessel or casino operator, or gaming vessel or casino supplier who is licensed under this article keep financial records in a manner determined by the commission;
(10) File a written annual report to the governor, the president of the Senate and the speaker of the House of Delegates on or before the thirtieth day of January of each year and such additional reports as the governor or Legislature may request. The annual reports shall include:
(A) A statement of receipts and disbursements by the commission and its financial position;
(B) The number and percentage of state residents under training and employed by each licensed gaming vessel and casino;
(C) Actions taken by the commission; and
(D) Any additional information and recommendations that the commission may deem valuable or the governor or Legislature may request.
(11) Provide staff to supervise and inspect the operation of vessel and casino gaming, which supervision and inspection shall include, at a minimum:
(A) State police presence for embarking and disembarking a gaming vessel and during operation of a gaming vessel or casino;
(B) Continuous on-line monitoring of all gaming activity and gaming devices on any gaming vessel or in any casino licensed pursuant to this article; and
(C) Such other monitoring as may be required to assure continuous compliance with all regulations of the commission and provisions of this article;
(12) Provide for the investigation of any complaints relating to vessel and casino gaming;
(13) Provide for the inspection of equipment and supplies used in vessel and casino gaming; and
(14) Review complaints from licensees and licenseholders relating to investigative procedures or inspections of the commission or its staff.
§ 29-24-11. Regulations.
(a) Generally. -- The commission shall adopt regulations in accordance with article three, chapter twenty-nine-a that:
(1) Set standards for electronic or mechanical gaming devices;
(2) Set standards for casinos, gaming vessels and facilities for vessel and casino gaming;
(3) Establish minimum levels of insurance to be maintained by a licensee;
(4) Provide for the protection of security interest holders; and
(5) Provide for implementation and enforcement of the provisions of this article.
(b) Initial regulations. -- Any such regulations promulgated by the commission before the first day of September, one thousand nine hundred ninety-four may be by emergency rule.
§ 29-24-12. Law enforcement.
(a) Generally. -- The commission shall coordinate with the law-enforcement officers of the state and the law-enforcement officers of appropriate municipalities and counties to enforce the provisions of this article. The law-enforcement officers of the state and of the municipalities or counties shall provide assistance to the commission to enforce the provisions of this article upon the request of the executive director. For purposes of law enforcement on gaming vessels, the law enforcement officers of the municipality or county where a gaming vessel is docked shall have jurisdiction over activity on the gaming vessel, which jurisdiction shall extend beyond the territory of the municipality or county to the extent that the law enforcement officer is on the gaming vessel and the vessel has gone beyond the territorial waters of the municipality or county.
(b) Costs. -- The actual cost of services provided by law-enforcement officers of the state in connection with enforcement provisions of this article shall be paid by the commission from the fund designated as the state gaming fund, which costs shall include all costs of required training and equipment and the salaries and benefits of required additional personnel. Such payments shall be made in accordance with established procedures for the transfer of funds from the state gaming fund to the appropriate account of the division of public safety.
The costs of services provided by law-enforcement officers of municipalities or counties shall be paid from the passenger admission fees required by section thirty-two of this article, which costs shall include all costs of required training and equipment and the salaries and benefits of additional personnel.

§ 29-24-13. Local option; local control.

(a) No gaming vessel or casino operation shall be licensed in a locality unless and until the local governing body holds an election on the question of whether gaming activities are to be conducted within such municipality or county. If a facility is to be located within the boundaries of a municipal corporation, the election shall be determined by a vote of the resident voters of the municipality, and if a facility is to be located outside the boundaries of a municipal corporation, the election shall be determined by a vote of the resident voters of the county in which the facility is proposed to be located: Provided, That the location of a navigational vessel shall be deemed to be the single location where it is authorized to be docked.

Any local option election shall determine whether the citizens of the municipality or county, as the case may be, approve or disapprove of the proposed authorization of gaming activities within the municipality or county, and such election shall be in accordance with such procedures as may be adopted by the commission. Such local option election may be held in conjunction with a primary or general election, or at a special election. Approval shall be by a majority of the voters casting votes on the question of approval or disapproval of gaming activities at the election.
Failure to obtain approval from the voters of a municipality or county shall not prevent the governing body of the municipality or county from placing the question of approving or disapproving gaming activities before the voters of the municipality or county at a subsequent general, primary or special election, subject to any required passage of time or other conditions established by the Legislature by general law.
(b) The governing body of any municipality or county voting to approve gaming activity pursuant to this section shall be notified by the commission of all applicants seeking to be licensed in that municipality or county and subsequently notified of the applicant chosen by the commission. The governing body of the municipality or county may request that the commission consider other applicants, and the commission shall be bound by the choice of the municipality or county. In the event that the governing body of the municipality or county approves no applicant within sixty days of notification that an applicant has been approved by the commission, the commission may issue the license to the applicant of its choice.
(c) The local governing body may further limit the hours of operation set forth in section twenty-nine of this article. A local option election may be held to determine whether vessel gaming may be conducted while the gaming vessel is docked for the purpose of passenger embarking and disembarking. No other local law or regulation providing any penalty, disability, restriction, regulation or prohibition for operating a gaming vessel or casino, operating a gaming device or supplying a gaming vessel shall be enacted, and the provisions of this article preempt all regulations, rules, ordinances and laws of any county or municipality in conflict herewith.
(d) Except as specifically provided in this article, no other fees or taxes may be imposed by a local governing body.
§ 29-24-14. Licenses required.
(a) A person shall not engage in the business of, attempt to engage in the business of, or offer to engage in the business of operating a gaming device, operating a gaming vessel or casino, or supplying a gaming vessel or casino in the state unless licensed by the commission or operating in accordance with this article.
(b) Licenses are required for the following purposes:
(1) To operate a gaming vessel or casino whenever the individual or entity engages in the business of operating a gaming vessel or casino in the state;
(2) To supply a gaming vessel or casino whenever the person or entity engages in the business of supplying gaming supplies in excess of fifty thousand dollars annually to a gaming vessel in the state;
(3) To operate a gaming device whenever the individual engages in the business of operating a gaming device in the state; and
(4) To be employed by a licensed operator of a gaming vessel or casino.
(c) All other licenses required by the state or local governing body shall be required as may apply.

§ 29-24-15. License to operate casino.

(a) Number of licenses. -- The commission shall issue no more than two licenses to operate casinos, and each casino shall be located on the premises of a resort hotel having not fewer than six hundred and fifty guest rooms in one contiguous facility under the same ownership and substantial guest recreational amenities in addition to the casino.

(b) Applicant qualifications. -- Each applicant must be the owner of the resort where the casino is located, and the resort must be located within the jurisdiction of a municipality or county approving the casino. Each applicant who is an individual, or each individual holding a controlling interest of an applicant that is not an individual, shall meet such qualifications and requirements as are set forth in subsection (c) of section twenty of this article and such other qualifications or requirements as the commission establishes by regulation for license applicants.
(c) Competition among applicants. -- In determining whether to grant a license to operate a gaming vessel to an applicant, the commission shall consider:
(1) The character, reputation, experience, and financial integrity of the applicant and any individual who holds a controlling interest in the applicant;
(2) The design and decor of the proposed casino, which shall be in keeping with the locale;
(3) The prospective total revenue to be derived by the state from the conduct of vessel gaming;
(4) The good faith affirmative action plan of each applicant to recruit, train and upgrade minorities, women, handicapped and the unemployed in all employment classifications;
(5) The good faith effort and action plan of each applicant meet the requirements set forth in section seventeen of this article;
(6) Any available local redevelopment and community revitalization plans, charts, or abstracts which would be indicative of the applicant's intention to promote positive relations with the local community and act in a manner consistent with good corporate citizenship;
(7) Whether the applicant has the capability of obtaining and maintaining adequate liability and casualty insurance;
(8) Whether the applicant has the capability or adequate capital to construct and maintain a safe and navigable gaming vessel for the duration of a license;
(9) The extent to which the applicant meets or exceeds other standards for the issuance of a license to operate a gaming vessel that the commission adopts by regulation; and
(10) The amount of tax the applicant is willing to remit to the state or locality in excess of the percentages required in section thirty-four of this article.
(d) Preferred applicants. -- Any applicant who is licensed to operate an existing parimutuel racing facility under the jurisdiction of the racing commission shall be given preferential consideration if otherwise qualified for a license in accordance with the provisions of this section: Provided, That the licensed racetrack shall not conduct less than two hundred twenty days of live racing during each racing meeting.
(e) License application requirements. -- An applicant for a license shall:
(1) Submit an application to the commission on the form that the commission requires;
(2) Pay to the commission a nonrefundable application fee for deposit into the state gaming fund in the amount of fifty thousand dollars for a license to operate a casino;
(3) Include on the application the following information:
(A) The identity of any person who has a controlling interest in the casino and, as to each, the information required by subsection (c) of section twenty of this article and information necessary to do a thorough credit check;
(B) The location of the casino and resort; and
(C) Any other information required by the commission.
(f) Casino and resort qualifications. -- An applicant for a license to operate a casino must operate a casino that (1) is accessible to disabled individuals; (2) is fully registered and licensed in accordance with all other applicable state and federal laws, including those specifying safety requirements and proper maintenance of sanitary conditions; and (3) meets any other qualifications specified by regulations adopted by the commission. The resort where the casino is located must have not fewer than six hundred and fifty guest rooms in a single, contiguous facility under the same ownership, have substantial guest recreational amenities in addition to the casino, and be accessible to disabled individuals.
(g) Investigation fee. -- When an applicant for a license to operate a casino submits an application, the applicant shall pay an investigation fee in the sum of fifty thousand dollars, which shall be applied to the cost of any investigation of the applicant required under this article.
(1) If the costs of the investigation of an applicant are greater than fifty thousand dollars the investigative agency shall show cause for the additional cost. If the commission approves, the applicant shall pay the additional costs as required by the commission, but not to exceed a total investigative fee of one hundred thousand dollars.
(2) If the costs of the investigation of an applicant are less than any amounts paid to the commission for investigation, the commission shall refund the difference.
(h) Surety bond requirement. -- A licensee or a holder of a prequalification permit shall execute a surety bond to be given to the state to guarantee the licensee faithfully makes the payments, keeps bonds and records, makes reports, and conducts gaming in the licensee's casino in accordance with this article and pursuant to regulations adopted by the commission. The surety bond shall be:
(1) In the amount of five million dollars;
(2) In a form that the commission approves; and
(3) With a surety that the commission approves.
The bond shall be used to guarantee that the licensee faithfully makes the payments, keeps its books and records and makes reports, and conducts its gambling games in conformity with this article and the rules adopted by the commission. The bond may not be canceled by a surety on less than thirty days notice in writing to the commission. The bond shall not be canceled during the term of the license. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.
(i) Local approval of issuance of licensee. -- The municipality or county where the casino is located shall approve the applicant prior to issuance of license in accordance with the provisions of subsection (b) of section thirteen of this article. In the event that the municipality or county does not approve any applicant within sixty days from notification of the commission's choice, the commission may issue the license to the applicant of its choice.
(j) Authorization of licensees. -- A license to operate a casino authorizes the licensee to engage in the business of operating a casino while the license is effective. Without prior authorization by the commission, a license to operate a casino is not transferable or assignable and cannot be sold or pledged as collateral.
(k) Audits. -- A licensed gaming vessel operator shall submit an annual audit by a certified public accountant registered in the state of West Virginia of the financial transactions and condition of the licensee's total operations. Such audit shall be in accordance with generally accepted auditing principles.
(l) Inventory. -- A licensed casino operator shall submit a list and inventory of all gaming devices offered for sale or lease in connection with the casino under this article.
(m) Annual license maintenance fee. -- The licensed casino operator shall pay to the commission an annual license maintenance fee of five thousand dollars.
(n) Penalty for non-operation of license. -- Any license who fails to operate a casino after issuance of a license therefor shall forfeit the surety bond executed pursuant to this section.
§ 29-24-16. License to operate gaming vessel.
(a) Number of licenses. -- The commission shall issue no more than eight licenses to operate gaming vessels. No more than one license shall be issued to operate the same gaming vessel, each gaming vessel shall have its own license, and no more than two licenses shall be issued to the same gaming vessel operator to enable the operator to operate no more than two gaming vessels.
(b) Licenses generally. -- An applicant and licensee shall meet all the requirements of section fifteen of this article, and the commission shall grant licenses in accordance with the provisions set forth in subsections (c) and (d) of section fifteen: Provided, That the term casino as used in the previous section shall mean gaming vessel in the context of a license to operate a gaming vessel, the requirement that the applicant own the resort shall be deemed a requirement to own the vessel, the application shall also state the location where the vessel is to be docked, and the county or municipality where the gaming vessel is to be docked must have approved the gaming vessel operation.
(c) Vessel qualifications; construction requirements. -- An applicant for a license to operate a gaming vessel must operate a gaming vessel that (1) has a capacity of at least seven hundred individuals; (2) is accessible to disabled individuals; (3) is fully registered and licensed in accordance with all other applicable state and federal laws, including those specifying passenger safety requirements and proper maintenance of sanitary conditions; (4) is constructed in accordance with the provisions of this subsection; and (5) meets any other qualifications specified by regulations adopted by the commission.
All aspects of construction of any gaming vessel other than the keel and hull and any subsequent construction projects shall be performed in the state of West Virginia. No less than ninety percent of the non-management personnel used in the construction shall be residents of the state of West Virginia at the time the project was let to bid or non-residents referred through a union hiring hall.
All aspects of shore construction shall be permanent improvements approved by the local governing body.
All construction projects undertaken by or on behalf of a licensed gaming vessel operator, both for shore-based and vessel activities, shall be built at prevailing wage rates as dictated in section one, article five-a, chapter twenty-one of this code.

§ 29-24-17. Licensees' employment requirements; recognition of labor organizations; profit percentage for local improvement projects.

(a) Ninety percent of all non-management employees shall be residents of West Virginia for at least one hundred eighty days prior to the time of application for employment.

No less than seventy-five percent of the non-management workers shall be full-time employees.
No employee shall be paid less than forty percent more than the federal minimum wage, and it shall be a condition of the issuance and renewal of any license issued to a gaming vessel or casino operator that the average salary of all employees of that licensee, exclusive of the salary or wages of officers, directors and executive officers, shall be at least twenty-four thousand dollars per year.
All non-management employees shall be provided with a health insurance plan that is comparable to that provided by the state of West Virginia for its employees with the licensee paying the full premium.
Anyone operating a gaming device shall be licensed in accordance with section twenty of this article, and all other employees shall be licensed in accordance with the provisions of section twenty-one of this article.
(b) If fifty percent plus one of the eligible employees sign an authorization card requesting that they be represented by a labor organization, management shall recognize that organization and commence good faith contract negotiations as provided by federal law.

§ 29-24-18. Licensees' annual reports; penalty for false reports.

(a) Each licensee shall file an annual balance sheet and profit and loss statement pertaining to the licensee's gambling activities in this state, together with a list of the stockholders or other persons having any beneficial interest in the gambling activities of each licensee.

(b) A licensee shall keep its books and records so as to clearly show the following:
(1) The total number of admissions to gambling excursions conducted by it on each day, including the number of admissions upon fee-free passes;
(2) The total number of daily patrons who are residents of West Virginia, expressed as a percentage of the total number of daily patrons;
(3) The amount received daily from admission fees; and
(4) The total amount of money wagered during each excursion day and the adjusted gross receipts for the day.
(c) The licensee shall furnish to the commission reports and information as the commission may require with respect to its activities.
(d) The books and records kept by a licensee as provided by this section are public records and examination, publication and dissemination of the books and records are governed by the provisions of article one, chapter twenty-nine-b of this code.

§ 29-24-19. License to supply gaming vessel or casino.

(a) Number of licenses. -- The commission shall issue a license to each applicant for a license to supply a gaming vessel who meets the requirements of this section.

(b) License qualifications. -- To qualify for a license, an applicant shall meet the requirements of this section. Each applicant who is an individual, and each individual holding a controlling interest of an applicant that is not an individual, shall meet the qualifications and requirements set forth in subsection (c) of section twenty of this article and such other qualifications or requirements as the commission establishes by regulation.
(c) Supplier specifications. -- An applicant for a license to supply gaming devices, equipment and supplies to a gaming vessel or casino shall demonstrate that the gaming devices, equipment and supplies that the applicant plans to sell or lease to a licensed gaming vessel operator conform to standards established by regulations of the commission and applicable state law.
(d) License application requirements. -- An applicant for a license shall:
(1) Submit an application to the commission on the form that the commission requires; and
(2) Pay to the commission a nonrefundable application fee for deposit into the state gaming fund in the amount of fifty thousand dollars for a license to supply a gaming vessel.
(e) Investigation fee. -- When an applicant for a license to supply a gaming vessel or casino submits an application, the applicant shall pay an investigation fee in the sum of fifty thousand dollars, which shall be applied to the cost of any investigation of the applicant required under this article.
(1) If the costs of the investigation of an applicant are greater than fifty thousand dollars the investigative agency shall show cause for the additional cost. If the commission approves, the applicant shall pay the additional costs as required by the commission, but not to exceed a total investigative fee of one hundred thousand dollars.
(2) If the costs of the investigation of an applicant are less than any amounts paid to the commission for investigation, the commission shall refund the difference.
(f) Authorization of licenseholderes. -- A license to supply a gaming vessel or casino authorizes the licensee to engage in the business of supplying a gaming vessel or casino while the license is effective.
(g) Inventory. -- A licensed gaming vessel supplier shall submit a list and inventory of all equipment, gaming devices, and supplies connected with vessel gaming under this article.
(h) Annual license maintenance fee. -- The licensed gaming vessel supplier shall pay to the commission an annual license maintenance fee of five thousand dollars.

§ 29-24-20. License to operate gaming device.

(a) Number of licenses. -- The commission shall issue a license to each applicant for a license to operate a gaming device who meets the requirements of this section.

(b) License application requirements. -- An applicant for a license to operate a gaming device shall:
(1) Submit an application to the commission on the form that the commission requires;
(2) Pay to the commission a nonrefundable application fee for deposit into the state gaming fund in the amount set by regulation by the commission for a license to operate a gaming device.
(c) Background information required. -- The application shall include the full name, social security number, residence, date of birth and other personal identifying information of the applicant that the commission considers necessary to assure that the applicant is of good character and reputation and at least twenty-one years old. The application shall also indicate whether the applicant has any of the following:
(1) A record of conviction of a felony;
(2) An active addiction to alcohol or a controlled substance; or
(3) A history of mental illness or repeated acts of violence.
An applicant shall submit pictures, fingerprints, and descriptions of physical characteristics to the commission in the manner prescribed on the application forms.
(d) Investigation and fee. -- The commission shall charge the applicant a fee set by the department of public safety, criminal identification bureau, which fee shall be approved by the commission, that is in addition to the application fee to defray the costs associated with the search and classification of fingerprints required in subsection (c) of this section.
Before a license is granted, the superintendent of the division of public safety shall conduct a thorough background investigation of the applicant for a license to operate a gaming device. The applicant shall provide information on a form as required by the superintendent.
(e) Authorization of licenseholders. -- A license to operate a gaming device authorizes the licenseholder to engage in the business of operating a gaming device while the license is effective.
(f) Annual license maintenance fees. -- The licensed gaming device operator shall pay to the commission an annual license maintenance fee set by the commission.

§ 29-24-21. License to be employed by operator of gaming vessel or casino.

(a) Number of licenses. -- The commission shall issue a license to each applicant for a license to be employed by a gaming vessel or casino who meets the requirements of this section.

§ 29-24-22. Consent to warrantless search.

As a condition of licensure and notwithstanding the separate licensure of the facility as a private club pursuant to article seven, chapter sixty of this code, any licensee or a licenseholder shall consent to members of the division of public safety or commission employees designated by the director of the commission to any search without a warrant of the licensee or licenseholder's person, personal property and effects, and premises which are located on the gaming vessel or in the casino or adjacent facilities under control of the licensee, to inspect or investigate for criminal violations of this article or violations of rules adopted by the commission.

§ 29-24-23. False statements on applications; other license requirements and prohibitions.

(a) Any person who knowingly makes a false statement on an application is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than one hundred nor more than five hundred dollars, or confined in the county or regional jail not less than six months, or both fined and confined.

(b) A license may only be granted to an applicant upon the express condition that:
(1) A licensee shall not, by a lease, contract, understanding, or arrangement of any kind, grant, assign, or turn over to a person the operation of a licensed gaming vessel or casino. This section does not prohibit a management contract approved by the commission; and
(2) The licensee shall not in any manner permit a person other than the licensee to have a share, percentage, or proportion of the money received for admissions to the gaming vessel or casino.
(c) A license shall not be granted if there is substantial evidence that the applicant for a license:
(1) Has been suspended from operating a gambling game, gaming device or gambling operation in another jurisdiction by a board or commission of that jurisdiction;
(2) Has not demonstrated financial responsibility sufficient to meet adequately the requirements of the enterprise proposed;
(3) Is not the true owner of the enterprise proposed;
(4) Is not the sole owner, and other persons have ownership in the enterprise which fact has not been disclosed;
(5) Is a corporation and five percent of the stock of the corporation is subject to a contract or option to purchase at any time during the period for which the license is issued unless the contract or option was disclosed to the commission and the commission approved the sale or transfer during the period of the license;
(6) Has knowingly made a false statement of a material fact to the commission;
(7) Has demonstrated either by a police record a lack of respect for law and order;
(8) Has been convicted of a felony or other crime involving moral turpitude; or
(9) Has failed to meet any monetary obligation in connection with an excursion gambling boat.
(d) Character references may be required of persons licensed, but the character references shall not be obtained from persons in the same or similar occupations or professions in other states.

§ 29-24-24. Licenses; display; change of address.

(a) The commission shall include on each license that the commission issues:

(1) The type of license;
(2) The identity and address of the licensee or licenseholder;
(3) The effective date of the license; and
(4) Any other information the commission deems appropriate.
(b) Each licensee or licensed supplier of a gaming vessel or casino shall display the license conspicuously in the office or place of business of the licensee. Each holder of a license to operate a gaming device or be employed by a gaming vessel or casino shall carry the license on his or her person and have some indicia of licensure prominently displayed on his or her person.
(c) Each licensed gaming vessel operator shall keep a certificate of vessel inspection on the gaming vessel at all times.
(d) Each licensee or licenseholder shall give the commission written notice of any change of address, and any other relevant material.
§ 29-24-25. Expiration date and renewal .
(a) A license expires on the fifth anniversary of its effective date, unless the license is renewed for additional five-year terms as provided in this section.
(b) At least two months before the license expires, the commission shall send to the licensee or licenseholder, by mail to the last known address of the licensee or licenseholder, a renewal application form and a notice that states:
(1) The date on which the current license expires;
(2) The date by which the commission must receive the renewal application for the renewal to be issued and mailed before the existing license expires; and
(3) The amount of the renewal fee.
(c) Before the license expires, the licensee or licenseholder, may renew it for successive additional five-year terms, if the licensee or licenseholder:
(1) Otherwise is entitled to be licensed;
(2) Pays to the commission a renewal fee:
(A) As set by the commission for a license to operate a gaming device;
(B) As set by the commission for a license to be employed by an operator of a gaming vessel or casino, which renewal fee may be paid by the employer;
(C) A sum of twenty-five thousand dollars for a license to operate a gaming vessel or casino; and
(D) A sum of five thousand dollars for a license to supply a gaming vessel or casino.
(3) Submits to the commission:
(A) A renewal application in the form that the commission requires; and
(B) Satisfactory evidence of compliance with any additional requirements set by regulations of the commission for license renewal.
(d) The commission shall renew the license and issue a renewal certificate to each licensee or licenseholder who meets the requirements of this section and pursuant to the provisions of this article.

§ 29-24-26 . License denial, revocation and reprimand.

(a) Subject to hearing provisions of section twenty-seven of this article, the commission, by the affirmative vote of a majority of its members, may deny a license to any applicant, reprimand any licensee or licenseholder, or suspend or revoke a license if the applicant or licensee or an individual holding a controlling interest in the applicant or licensee or the licenseholder:

(1) Fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another;
(2) Fraudulently or deceptively uses a license; or
(3) Has been convicted of a felony under the laws of this state, another state, a territory of the United States or the United States.
(b) Instead of or in addition to reprimanding a licensee or licenseholder or suspending or revoking a license, the commission may impose a civil penalty under section forty-seven of this article.
(c) In addition to any other grounds specified in this article, and subject to the hearing provisions of section twenty-seven of this article, the commission, on the affirmative vote of a majority of its members, may deny a license to operate a gaming vessel or casino to any applicant, reprimand any licensee or licenseholder, or suspend or revoke a license if the applicant or licensee or an individual holding a controlling interest in the applicant or licensee or licenseholder:
(1) Employs an individual in a senior management position who has been convicted of a felony under the laws of this state, another state, a territory of the United States, or the United States or employs any individual in a senior management position who has had a license to operate a gaming vessel revoked by this state or any other state; or
(2) Controls more than fifty percent of a person holding a license to operate a gaming vessel.
(d) An incomplete application is cause for denial of a license by the commission.
§ 29-24-27. Hearing procedures.
Except as otherwise provided by law, before the commission takes any action under the provisions of this article, it shall give the person against whom the action is contemplated an opportunity for a hearing before the commission.
The commission shall give notice and hold the hearing in accordance with state law, such notice to be given to the person by certified mail to the last known address of the person at least thirty days before the hearing. The person may be represented at the hearing by counsel.
If a person fails to comply with a subpoena issued under this subsection, on petition of the commission, the circuit court may compel obedience to the subpoena. If after due notice the person against whom the action is contemplated fails or refuses to appear, the commission may hear and determine the matter.
Any person aggrieved by a final decision of the commission in a contested case, as defined in governing state statute, may take an appeal as allowed.
§ 29-24-28. Vessel gaming sites.
Vessel gaming as authorized under this article may be conducted on the following commercially navigable waterways within the state:
(1) The Ohio River from the northernmost site of Hancock County to the southernmost site of Wayne County;
(2) The Great Kanawha River from Point Pleasant to Belle; and
(3) The Monongahela River from Fairmont to the northern border of Monongalia County.
§ 29-24-29. Operating hour restrictions.
Vessel and casino gaming is prohibited during the hours of two o'clock a.m. through twelve o'clock noon.
Notwithstanding section twelve, article seven, chapter sixty of this code, vessel gaming operators that are licensed are permitted to serve alcoholic liquors and nonintoxicating beer during operating hours: Provided, That the vessel departs from its dock before the legal period for the consumption of alcoholic beverages has passed.
Vessel gaming operators are required to comply with existing requirements with respect to the period in which alcoholic beverages may be served and consumed while the vessel is docked.
§ 29-24-30. Vessel gaming restrictions.
Gaming may not be conducted while the gaming vessel is docked unless:
(1) The gaming vessel is temporarily docked for embarking or disembarking passengers, crew or supplies, and the local referendum area has approved gaming while the vessel is temporarily docked; or
(2) The gaming vessel is docked pursuant to section thirty-one of this article.

§ 29-24-31. Safety exemption; reporting requirement; limitation on docked time.

(a) Safety exemption. -- The captain of the gaming vessel has the sole discretion to order the gaming vessel docked under the following circumstances:

(1) The safety of the passengers or crew is at risk, including mechanical problems or other conditions affecting safe navigation;
(2) Inclement weather; or
(3) Any other basis the commission deems appropriate.
(b) Reporting requirement. -- If the gaming vessel is docked by orders of the captain, a report must be filed with the commission within seven calendar days.
The report shall include:
(1) Full and complete justification for the docking, including any relevant weather information; and
(2) Any other information required by the commission.
(c) Limitation on docked time. -- The gaming vessel may not be docked in excess of thirty percent of the operating hours calculated on an annual basis, unless the commission makes a determination that normal excursions could not reasonably be undertaken: Provided, That the captain has the affirmative duty to sail unless demonstrable evidence is provided which meets the conditions set forth in subsection (a) of this section.

§ 29-24-32. Admission tickets; admission fees; identification and record of residency required; consent to presence of law enforcement officers.

(a) Admission tickets. -- A licensed gaming vessel or casino operator is required to issue nontransferable admission tickets to each individual embarking on a gaming vessel or entering a casino.

(b) Admission fees. -- A licensed gaming vessel or casino operator shall remit to the commission an admission fee for each individual embarking on a gaming vessel with a ticket of admission. The admission fee is two dollars per passenger or casino patron, which fee may be collected from the patron or paid directly by the gaming vessel or casino operator, and shall be remitted to the commission in accordance with established procedures therefor. The commission shall allocate and disburse all funds collected under this section to the local host municipality, or county commission if the dock site or casino is located outside a municipality. The admission fee paid to the municipality or county shall fund the provisions relating to local law enforcement under section twelve of this article and other municipal services.
The licensed gaming vessel or casino operator may issue admission fee-free passes to actual and necessary officials, gaming vessel employees, and under any other circumstance the commission deems appropriate.
(c) Identification. -- No individual shall be allowed to board a gaming vessel or allowed in a casino without showing proper identification setting forth the age and residence of the individual. The operator of any gaming facility shall keep a contemporaneous record of the total number of patrons of the facility and shall further record the number who are residents of the state of West Virginia expressed as a percentage of the total number of patrons of that facility.
(d) Consent to presence of law-enforcement officers. -- Any individual boarding a gaming vessel or allowed in a casino shall be advised of the possible presence of state, county or municipal law-enforcement officers without court order or warrant and by boarding the vessel or entering the casino impliedly consents to the presence of such law-enforcement officer.
§ 29-24-33. Vessel gaming wagering; supplies.
Licensed gaming vessel and casino operators may set minimum and maximum wagers used for a gaming device on a gaming vessel.
Vessel and casino gaming may only be conducted with equipment, gaming devices, and supplies from a licensed gaming vessel supplier.
§ 29-25-34. Taxes.
(a) Imposition and rate. -- A tax is hereby imposed on the adjusted gross receipts received by a licensed gaming vessel or casino operator, which is in addition to all other applicable state and local taxes.
The state tax rate is a minimum of fifteen percent of the adjusted gross receipts received by a licensed gaming vessel or casino operator, although the commission may negotiate with an applicant for a higher state tax rate. The amount of the tax shall be distributed as set forth in section thirty-five of this article.
The municipal tax rate, if the casino be located or the gaming vessel be docked in a municipality, shall be three and one-half percent, which percentage shall be paid to the county commission in the event the casino is not located or the gaming vessel is not docked in a municipality. The commission, county or municipality may negotiate with an applicant for a higher tax rate.
In addition to the taxes set forth in this subsection, each operator of a resort licensed to operate a casino shall pay a two dollar occupation tax per hotel guest per night to the municipality in which the resort is located or, if not located in a municipality, then to the county, which tax shall be in addition to all other taxes imposed by law.
(b) Tax filing date. -- A licensed gaming vessel or casino operator shall file with the state tax commissioner a vessel gaming or casino tax return prescribed by the tax commissioner on or before the twenty-first day following the month in which the licensed gaming vessel or casino operator received any gross receipts.
(c) Tax payment. -- A licensed gaming vessel or casino operator shall pay the vessel gaming or casino taxes imposed in subsection (a) of this section together with a return prescribed by the tax commissioner that covers the month that the licensed gaming vessel or casino operator received the gross receipts and, in the case of casino, the occupation tax. The taxes shall be paid to the tax commissioner for deposit in the state gaming fund created in section thirty-five of this article for disbursement in accordance with section thirty-five of this article.
(d) Increased tax rate. -- Notwithstanding the provisions of subsection (a) of this section, after the first twelve months of operation of any gaming vessel or casino licensed pursuant to this article and at the end of every twelve-month period thereafter, the state tax rate, plus the municipal tax rate, plus the admission fees, plus the occupation tax, if any, to be paid by that gaming facility shall equal the same percentage of the adjusted gross receipts of that gaming facility as the percentage of its patrons during the preceding twelve-month period who were residents of the state of West Virginia: Provided, That in no case shall the state tax rate be lower than fifteen percent of the adjusted gross receipts of any gaming facility licensed pursuant to this article. No such facility shall prevent or otherwise discourage the entry of that facility by any person or otherwise discriminate against any person based on the state of residency of that person.

§ 29-24-35. State gaming fund; allocation of adjusted gross receipts.

(a) There is hereby created a special fund in the state treasury which shall be designated and known as the "state gaming fund." The fund shall consist 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 from licenses and applications under this article and all tax revenues from the tax imposed under section thirty-four of this article shall be deposited with the state treasurer and placed in the state gaming fund. The revenue shall be disbursed in the manner herein provided for the purposes stated herein and shall not be treated by the auditor and treasurer as part of the general revenue of the state. The authority to disburse shall include the authority to transfer moneys deposited in the fund to counties and municipalities in such amounts as are set forth in subsection (b) of this section.

(b) A minimum of fifteen percent of the adjusted gross receipts of each facility which is authorized to conduct gaming activities shall be paid to the general fund of the state and shall be distributed as follows:
(1) Seventy-five percent of the state's share of the adjusted gross receipts shall be allocated by the Legislature for appropriation to the following categories:
(A) public school and higher education programs and services; (B) maintenance or construction of public school and higher education facilities;
(C) economic development not related to gaming activities;
(D) tourism not related to gaming activities; or
(E) programs and services for senior citizens.
(2) Twenty percent of the state's share of the adjusted gross receipts shall be proportionally divided among the counties of this state, using a formula based upon the population of the counties according to the most recent decennial census conducted by the bureau of the census of the United States department of commerce, and each county shall thereafter proportionally divide its share so as to provide each municipality within the county its proportionate share based upon the population of the municipality according to the most recent decennial census, retaining the balance for use by the county; and
(3) Five percent of the state's share of the adjusted gross receipts shall be allocated by the Legislature for public higher education scholarships for West Virginia residents who attend public institutions of higher education in West Virginia, and for prevention and treatment programs directed at reducing the incidence of gambling addiction. All moneys provided for higher education scholarships shall be allocated to the higher education grant program set forth in article five, chapter eighteen-c of this code, and such allocation shall be in addition to the amount of appropriation allocated to the higher education grant program for the fiscal year one thousand nine hundred ninety-four, which amount shall not be reduced.
(c) A minimum of three and one-half percent of the adjusted gross receipts of each facility which is authorized to conduct gaming activities shall be paid to the municipality or county wherein the facility is located, to be allocated by the governing body of the municipality or county. At least fifty percent of this amount shall be used for improvement to local infrastructure. The local governing body may negotiate a higher percentage of the adjusted gross receipts to be paid.
(d) An adequate portion of the receipts allocated to higher education shall be allotted to establish a "future corps program for public and community workers." Such program shall be constituted as follows:
(1) Establishment; purpose. -- The board of trustees and the board of directors shall establish a program entitled the "Future Corps," designed to help individuals earn the means for a college education through public service positions meeting human service and local needs.
The purpose of this program shall be to provide public service to the community at large and to provide, as well, benefits to participating individuals including incentives to finish high school in order to qualify for Future Corps service; achievement of educational goals without onerous debt burdens; an alternative to military service; and the development of an interest in public service careers.
(2) Administration generally; director. -- The board of trustees and board of directors shall develop and monitor the Future Corps mission, solicit foundation and other private sector contributions, develop policy and monitor expenditures.
The boards shall appoint a state director whose primary responsibilities shall include: Development and implementation of a state program that is regionally based; development of selection criteria for potential project sponsors and a process to inform sponsors of their duties; supervising the internship and educational development components of the program; review and evaluation of sponsor performance; coordinating contracts for insurance benefits; operating statewide recruitment and promotions; and development of linkages with public and private educational and employment organizations, and with community service opportunities offered by public schools and post-secondary institutions.
The state director shall coordinate recruitment and placement of Future Corps workers. State employment offices, private industry councils, high school counselors, post-secondary education placement offices, and related career and jobs centers shall receive Future Corps materials and be requested to take part in recruitment efforts. A rigorous screening procedure shall be implemented and in addition the board of directors and board of trustees shall adjust the selection of interns by cultural and racial background, family income level and geographic residence to maximize diversity of membership. The state director shall each year submit a plan to the board of directors and board of trustees to recruit minority, low-income and other individuals who could not otherwise afford a college education.
(3) Sponsors; service categories. -- Sponsors may apply to Future Corps for placements. A sponsor must demonstrate that it does not practice discrimination, that a Future Corps intern will help them meet important human services or environmental needs which are unable to be met by existing personnel and that existing personnel will not be displaced. Service interns shall be placed individually with approved sponsors. Sponsors will be responsible for the cost of one half of the Future Corps intern's stipend at the state minimum wage.
An activity may be designated as a service category and receive Future Corps workers if the board and the director determine that the activity is of substantial social benefit in meeting unmet human, social or environmental needs. The service categories referred to in this section include: Service in state, local and regional government agencies; service in nursing homes, hospices, senior centers and hospitals; local libraries, parks, recreational facilities, day care centers and schools; service in law enforcement agencies and penal and probation systems; service in private nonprofit organizations whose principal purpose is social service; service in the rehabilitation or improvement of public facilities; neighborhood improvements; literacy training; repairs to low-income housing; energy conservation; and conservation, maintenance, or restoration of natural resources on publicly held lands; and any other service that the boards determine to be appropriate for purposes of this article.
The service categories referred to in this subsection may not include an position in: A business organized for profit; labor union; partisan political organization; or organization engaged in religious activities, unless such position does not involve any religious function.
(4) Tuition voucher, etc. -- Any person who serves in a Future Corps project under this article shall be not less than seventeen years of age. Any person who does not hold a high school diploma or its equivalent may not be accepted in Future Corps unless such person works out a plan acceptable to the state director for achieving a high school equivalency. Continued enrollment in Future Corps is conditional upon successful completion of the plan. All Future Corps interns shall commit themselves to at least one year and no more than two years of service. During their service, interns shall receive a weekly stipend equivalent to payment at the state minimum wage. In addition, those interns who complete one year of service in Future Corps shall earn a tuition voucher in an amount equivalent to the cost of two years of tuition, room, board and fees at any of the public institutions of higher education under the governing authority of the board of trustees and board of directors. Future Corps interns who complete two years of service shall earn a tuition voucher in an amount equivalent to the cost of four years of tuition, room, board and fees. If an intern so chooses, the voucher shall be issued for use at any accredited private institution of higher education. Any person serving in a Future Corps project may arrange to receive academic credit at any accredited institution of higher education in recognition of learning and skills for service satisfactorily completed. All Future Corps members shall be covered by workers' compensation and health insurance during their terms of service.
(5) Reports to director. -- Sponsors receiving grants under section three shall provide oversight of Future Corps workers in accordance with procedures established by the board. Each sponsor receiving a grant under section three shall prepare and submit reports as determined by the director.

§ 29-24-36. Prohibition of political contributions.

Any person who has been issued a license pursuant to the provisions of this article, or any person who is an applicant for such license, or any officer, agent or person on behalf of a licensee or on behalf of an applicant for such license, who pays, gives or lends, or authorizes to be paid, given or lent, any money or other thing of value to any candidate, financial agent or political committee or other person, for the payment of any primary, general or other election expenses incurred or to be incurred in connection with an election in this state, is guilty of a felony, and, upon conviction thereof, shall be imprisoned in the penitentiary not less than one year nor more than ten years, or, in the discretion of the court, be confined in jail not more than one year and shall be fined not more than five thousand dollars. In the case of a person other than a natural person, where an offense under this subsection is neither punishable by imprisonment nor confinement, a fine may be imposed in an amount not to exceed fifty thousand dollars.

§ 29-24-37. Prohibition of defrauding devices.
A person on a licensed gaming vessel or in a casino may not use, nor possess with the intent to use, any device to assist in:
(1) Projecting the outcome of a gambling game;
(2) Keeping track of the cards played or in play;
(3) Analyzing the probability of the occurrence of an event relating to any gambling game;
(4) Analyzing the strategy for playing or betting to be used in the gambling game;
(5) Acts or employs another person to act, as a shill or decoy to encourage participation in a gambling game; or
(6) Defrauding, cheating, or otherwise bringing into risk the legitimate operation, integrity, or outcome of the vessel gaming or casino operations.
§ 29-24-38. Unauthorized representation.
Unless authorized to engage in the business of operating a gaming device, operating a gaming vessel or casino, or supplying a gaming vessel or casino under this article, a person may not represent to the public by use of the title "licensed gaming device operator," "licensed gaming vessel operator," "licensed casino operator," or "licensed gaming vessel and casino supplier," by other title, by description of services or otherwise, that the person is authorized to engage in the business of operating a gaming device, operating a gaming vessel or casino, or supplying a gaming vessel or casino.
§ 29-24-39. Prohibitions on wagering.
(a) A licensee or licensed gaming device operator shall not permit any form of wagering except as authorized under this article.
(b) The licensee or licensed gaming device operator shall receive wagers only from an individual present on a licensed gaming vessel or in a licensed casino.
(c) All vessel and casino gaming operations shall utilize a cashless wagering system whereby all players' money is converted to tokens, electronic cards, or chips at the request of the wagerer which can only be used for wagering on a licensed gaming vessel or casino.
(d) Wagering shall not be conducted with money or other negotiable currency.
(e) The licensee shall not loan to any person money or any other thing of value for the purpose of permitting that person to wager on any gambling game.
§ 29-24-40. Offenses and penalties.
(a) A person is guilty of unlawful operation of a gambling excursion when:
(1) Such person operates a gambling excursion where wagering is used or is to be used without a license issued by the commission.
(2) Such person operates a gambling excursion where wagering is permitted other than in the manner specified by section nine of this article.
(3) Such person acts, or employs another person to act, as a shill or decoy to encourage participation in a gambling game.
(4) Such person knowingly permits an individual under the age of twenty-one years of age to board a gaming vessel or enter a casino or to make a wager.
(5) Such person exchanges tokens, chips or other forms of credit to be used on gambling games for anything of value except in exchange for money as a result of the wagering.
(b) A person is guilty of felonious wagering when:
(1) Such person offers, promises, or gives anything of value or benefit to a person who is connected with a vessel or casino gaming operation, pursuant to an agreement or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to whom the offer, promise, or gift was made in order to affect or attempt to affect the outcome of a gambling game, or to influence official action of a member of the commission. For the purposes of this subdivision and subdivision (2) of this subsection, the term "person who is connected with a vessel or casino gaming operation" includes, but is not limited to, an officer or employee of a licensee or licensed gaming device operator.
(2) Such person solicits or knowingly accepts or receives a promise of anything of value or benefit while the person is connected with an excursion gambling boat, pursuant to an understanding or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to affect or attempt to affect the outcome of a gambling game, or to influence official action of a member of the commission.
(3) Such person uses or possesses with the intent to use a device to assist:
(A) In projecting the outcome of the gambling game;
(B) In keeping track of the cards played;
(C) In analyzing the probability of the occurrence of an event relating to the gambling game; or
(D) In analyzing the strategy for playing or betting to be used in the gambling game, except as permitted by the commission.
(4) Such person cheats at a gambling game.
(5) Such person manufactures, sells, or distributes any cards, chips, dice, game or device which is intended to be used to violate any provision of this article.
(6) Such person instructs a person in cheating or in the use of a device for that purpose with the knowledge or intent that the information or use conveyed may be employed to violate any provision of the article.
(7) Such person alters or misrepresents the outcome of a gambling game on which wagers have been made after the outcome is made sure but before it is revealed to the players.
(8) Such person places a bet after acquiring knowledge, not available to all players, of the outcome of the gambling game which is subject of the bet or to aid a person in acquiring the knowledge for the purpose of placing a bet contingent on that outcome.
(9) Such person claims, collects, or takes, or attempts to claim, collect, or take, money or anything of value in or from the gambling games, with intent to defraud, without having made a wager contingent on winning a gambling game, or claims, collects, or takes an amount of money or thing of value of greater value than the amount won.
(10) Such person knowingly entices or induces an individual to go to any place where a gambling game is being conducted or operated in violation of the provisions of this article with the intent that the individual plays or participates in a gambling game.
(11) Such person uses counterfeit chips or tokens in a gambling game.
(12) Such person knowingly uses, other than chips, tokens, coin, or other methods or credit approved by the commission, legal tender of the United States of America, or to use coin not of the denomination as the coin intended to be used in the gambling games.
(13) Such person, not a gambling licensee or employee of a gambling licensee acting in furtherance of the employee's employment, has in his or her possession any device intended to be used to violate a provision of this article.
(14) Such person, not a gambling licensee or employee of a gambling licensee acting in furtherance of the employee's employment, has in his or her possession any key or device designed for the purpose of opening, entering, or affecting the operation of a gambling game, drop box, or an electronic or mechanical device connected with the gambling game or for removing coins, tokens, chips or other contents of a gambling game.
(c) Any person who violates the provisions of subsection (a) of this section is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than one hundred dollars nor more than five thousand dollars and confined in the county or regional jail not more than six months.
(d) Any person who violates the provisions of subsection (b) of this section is guilty of a felony, and, upon conviction thereof, shall be fined not less than five thousand dollars nor more than ten thousand dollars and imprisoned in the penitentiary for a definite term not less than one year nor more than five years.

§ 29-24-41. Forfeiture of property.

(a) Anything of value, including all traceable proceeds including, but not limited to, real and personal property, moneys, negotiable instruments, securities, and conveyances, is subject to forfeiture to the state of West Virginia if the item was used for any of the following:

(1) In exchange for a bribe intended to affect the outcome of a gambling game; or
(2) In exchange for or to facilitate a violation of this article.
(b) All moneys, coin, and currency found in close proximity of wagers, or of records of wagers, are presumed forfeited. The burden of proof is upon the claimant of the property to rebut this presumption.
(c) Subsections (a) and (b) do not apply if the act or omission which would give rise to the forfeiture was committed or omitted without the owner's knowledge or consent.
§ 29-24-42. Individual gaming restrictions.
(a) An individual may not participate in vessel or casino gaming:
(1) Unless the individual is present on a gaming vessel that is owned by a licensed gaming vessel operator or is a registered overnight guest in the resort hotel on whose premises a casino is located;
(2) If the individual is intoxicated; or
(3) If the individual is determined by the licensed gaming vessel or casino operator to be unruly, disruptive, or otherwise interfering with vessel or casino gaming.
(b) An individual under the age of twenty-one years shall not:
(1) Board a gaming vessel on which gaming is being conducted or enter a casino in which gaming is being conducted; or
(2) Participate in any gaming on a gaming vessel or in a casino.
§ 29-24-43. Civil penalties.
The commission may impose on a person who violates a provision of this article a civil penalty not to exceed five thousand dollars for each violation, whether or not the person is licensed under this article.
§ 29-24-44. Severability.
If any provision of this article or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this article, and to this end the provisions of this article are declared to be severable.

FINANCE COMMITTEE AMENDMENTS

On page five, section one, line four, by striking out the word "is" and inserting in lieu thereof the word "are".
On page five, section one, line five, by striking out the words "it is" and inserting in lieu thereof the words "they are".
On page six, section two, line twenty-two, by inserting a new subsection, designated subsection (6), to read as follows:
(6) "Net profits" means all earnings of a licensee for the applicable tax year from operations, after deducting therefrom all current operating expenses, actual losses, accrued dividends on preferred stock, if any, and all federal and state taxes" followed by a period, and renumbering the subsequent subsections accordingly.
On page seven, section two, line seventeen, following the word "means", by striking out the words "an individual" and inserting in lieu thereof the words "a person".
On page nine, section three, line nine, by striking out the words "article twenty" and inserting in lieu thereof the words "articles twenty, twenty-one and twenty-three of" and by striking the comma.
On page nine, section three, line nine, by adding a new subsection (c) to read as follows:
"(c) All provisions of state and local law and regulation of general application not specifically excepted or in conflict with the provisions of this article, including but not limited to laws relating to the conduct of business; the taxation of business, property and income; zoning; employment; and private clubs and the regulation of alcohol, non-intoxicating beer and wine, shall apply, as appropriate, to the vessel and casino gaming operations authorized by this article" followed by a period.
On page twelve, section five, line fifteen, following the word "receive", by striking out the words "one hundred dollars" and inserting in lieu thereof the words "the amount of compensation authorized for state legislators when in special session".
On page twelve, section five, line twenty-seven, following the word "bond", by inserting the word "in".
On page twenty-two, section thirteen, line six, following the word "election", by striking the remainder of the sentence and inserting in lieu thereof a colon and the words " Provided, That there shall be no more than one election held within any two-year period: Provided, however, That during such two-year period, no election shall be held in the same county unless the same is approved by a vote of the county commission" followed by a period.
On page twenty-three, section thirteen, line four, following the word "body", by adding the following: "that are specific to the gaming industry authorized by this article: Provided, That all provisions of local law and regulation of general application not specifically excepted or in conflict with the provisions of this article, including but not limited to laws relating to licensure, business and property taxation, and zoning, shall apply, as appropriate, to the vessel and casino gaming operations authorized by this article".
On page twenty-four, section fifteen, line ten, following the period, by inserting a new sentence to read as follows: "Each applicant that is not domiciled in or organized under the laws of this state shall be licensed to do business in this state or shall have signed an agreement consenting to the taxing authority and laws of the state of West Virginia."
On page twenty-six, section fifteen, line two, following the word "meeting", by changing the period to a colon and inserting the following: "Provided, however, That no casino shall be located within fifty air miles of any horse-racing facility licensed in the state on the first day of January, one thousand nine hundred ninety-four, unless (1) such casino is owned and operated by the racing facility or owns or operates the racing facility, (2) the racing facility continues to operate as a horse-racing facility under the provisions of article twenty-three, chapter nineteen of this code, and (3) no less than five percent of the net profits of the casino operation is transferred to the horse-racing facility for distribution as set forth in section nine, article twenty-three, chapter nineteen of this code: Provided further, That no casino shall be located within fifty air miles of any horse-racing facility in this state under any circumstances unless such horse-racing facility has a racing strip of at least one mile in circumference which is used for eighty percent of its horse races, and such one-mile racing strip has a radius of at least three hundred seventy feet in each turn measured to the inside rail."
On page twenty-nine, section fifteen, line four, following the word "Any", by striking out the word "license" and inserting in lieu thereof the word "licensee".
On page twenty-nine, section sixteen, line twenty-four, by changing the period to a colon and adding the following: "Provided, however, That the provisions of subsection (d) of section fifteen of this article relating to the proximity of casinos to horse-racing facilities shall not apply to gaming vessels."
On page thirty-one, section seventeen, line five, by changing the period to a colon and adding the following: "Provided, That the term "salary" as used in this subsection shall not include any health, vacation or retirement benefits."
On page thirty-one, section seventeen, following line eighteen, by inserting a new subsection, designated subsection (c), to read as follows:
"(c) No less than ten percent of a licensee's net profits shall be reinvested in local public improvement projects in a manner and on a timetable approved by the local governing body."
On page thirty-one, section eighteen, line twenty-four, following the period, by inserting the following: "Each licensee shall file with the commission, within ninety days after such licensee's fiscal year end, a financial report with respect to the licensee, its parent corporation, if any; each of its subsidiaries, if any; and each of its affiliates, if any. Each such financial report shall include, for the licensee, its parent, each of its subsidiaries and each of its affiliates, at least a financial statement prepared by a certified public accountant in accordance with generally accepted accounting principles, including a balance sheet and income statement: Provided, That a licensee may file with the commission, in lieu of separate financial reports for the licensee, its parent, its subsidiaries and its affiliates, a consolidated financial statement prepared by a certified public accountant in accordance with generally accepted accounting principles, including a balance sheet and income statement, for such licensee, its parent, its subsidiaries and its affiliates."
On page thirty-two, section eighteen, line twelve, following the period, by adding the following: "All reports required by this section shall be signed and acknowledged before a notary public, and the making or filing of any report, information or other document or copy thereof required to be made or filed pursuant to this article shall constitute a certification by the person making or filing such return, statement or other document or copy thereof that the statements contained therein are true and that any copy filed is a true copy. Any person who: (1) Knowingly files a false or fraudulent report or other document under any provision of this article; (2) willfully delivers or discloses to the commission any list, account, statement, record or other document known by such person to be fraudulent or false as to any material matter; or (3) willfully attempts in any other manner to evade the requirements of this section, is guilty of a felony and, notwithstanding any other provision of this code, upon conviction thereof, shall be fined not less than one thousand dollars nor more than ten thousand dollars, or imprisoned in the penitentiary for a definite term of not less than one nor more than three years, or, in the discretion of the court, be confined in the county jail not more than one year, or both fined and imprisoned."
On page thirty-eight, section twenty-three, line two, by striking out the word "and".
On page thirty-eight, section twenty-three, following line two, by adding a new subdivision (2) to read as follows:
"(2) A licensee shall waive any and all rights to qualify for or receive any tax credit or tax incentive available pursuant to articles thirteen-c and thirteen-d, chapter eleven of this code; article two-d, chapter five-b of this code; or article one, chapter five-e of this code as a result of the investment of either property or employment within this state by the licensee or a parent corporation of the licensee, if any, or any subsidiary or affiliate of the licensee, if any, or any other entity which has a controlling interest in the licensee or any entity in which the licensee has a controlling interest" followed by a semicolon and the word "and".
On page thirty-eight, section twenty-three, line three, by renumbering "(2)" as "(3)".
On page forty-seven, section thirty-four, line one, by striking out the word "A" and inserting the words: "In addition to all other taxes imposed by the state or authorized by the state to be imposed by a local governing body, a".
On page forty-seven, section thirty-four, line twenty-three, by changing the period to a colon and inserting the following: "Provided, That any municipality with a boundary within five miles of a casino not located in a municipality shall receive a pro-rated portion of the occupation tax, such portion to be based on the municipality's population as a percentage of the county's population."
On page forty-eight, section thirty-four, line sixteen, following the second word "the", by striking out the word "municipal" and inserting in lieu thereof the word "local".