Senate Bill No. 112
(By Senator Chernenko)
____________
[Introduced January 26, 1994; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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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-two-a,
relating to the operation of video lottery games at licensed
horse and dog racetracks; providing legislative findings,
relating to intent; providing definitions of terms;
specifying video lottery terminal requirements and
specifications; relating to applications for approval of
video lottery terminals, testing of video lottery terminals
and report of test results, modifications to approved video
lottery terminals, seizure and destruction of nonconforming
video lottery terminals, hardware specifications, software
specifications for randomness testing, percentage payout,
continuation of game play after malfunction and play
transaction records; providing license and permit
qualifications for manufacturers, racetracks, service
technicians and validation managers; relating to information
to be furnished by applicants for license or permit and
waiver of liability; requiring oath or affirmation of
applications; requiring applicants to provide accurate and
material information; relating to forms of application;
authorizing local option elections; relating to form of
petition for local option elections, legal publications
related to local option elections, certification of results
of local option elections, issuance of video lottery
license, notice of incomplete application and notice of
license or permit denial, suspension or revocation;
providing procedures for review of license or permit denial,
suspension or revocation; relating to license and permit
fees, renewal fees and renewal dates, bonding, renewal of
license or permit and notice of change affecting license or
permit; providing that license or permit is not
transferrable or assignable; relating to general duties of
all video lottery license and permit holders, specific
duties of permitted manufacturers, permitted service
technicians, permitted validation managers and licensed
racetracks; specifying video lottery game accounting and
reporting requirements; relating to communications protocol
data, distribution of net terminal income, remittance
through electronic transfer of funds, commission control of
accounting for net terminal income, optional manual
reporting and payment, request for reports, examination of
accounts and records and video lottery terminal maintenance;requiring manufacturers to provide training; relating to
availability of training, reports and certificates of
training programs, requirements of service technicians,
requirement for maintenance logs, keys to video lottery
terminals, notification of repairs to the logic area,
notification of broken seals on logic boards, number and
location of terminals, security requirements and payment of
credits, method of payments and restrictions on payment of
credits; requiring defacing of redeemed tickets; relating to
liability for video lottery terminal malfunction and
transportation and registration of video lottery terminals;
and providing hearing and appeal procedures.
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-two-a, to
read as follows:
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-1. Short title.
This article shall be known and may be cited as the
"Racetrack Video Lottery Act".
§29-22A-2. Legislative purposes, findings and intent.
The purpose of this article is to define and provide
specific standards for the operation of video lottery games at
pari-mutuel racing facilities licensed by the state racing
commission pursuant to article twenty-three, chapter nineteen ofthis code. The Legislature finds and declares that the existing
pari-mutuel racing facilities in West Virginia provide a valuable
tourism resource for this state and provide significant economic
benefits to the citizens of this state through the provision of
jobs and the generation of state revenues; that this valuable
tourism resource is threatened because of a general decline in
the racing industry and because of increasing competition from
racing facilities and lottery products offered by neighboring
states; and that the survival of West Virginia's pari-mutuel
racing industry is in jeopardy unless modern lottery games are
authorized at the racetracks. The Legislature further finds and
declares that the limited video lottery games authorized by this
article are "lotteries" as that term is commonly understood and
as that term is used in the West Virginia constitution, article
six, section thirty-six, the video lottery games authorized by
this article being lottery games which utilize advanced computer
technology; that the constitution grants to the Legislature the
authority to establish the manner of regulation, control,
ownership and operation of lottery games; and that the most
efficient manner of regulation, control, ownership and operation
for video lottery games includes the ownership of physical
devices utilized in connection with video lottery by private
entities licensed by the state lottery commission, while vesting
control and ownership of the video lottery games in the
commission.
§29-22A-3. Definitions.
As used in this article:
(a) "Applicant" means any person applying for any video
lottery license or permit.
(b) "Associated equipment" means any hardware located on the
licensed racetrack's premises which is connected to the video
lottery system for the purpose of performing communication,
validation or other functions, but not including the video
lottery terminals or the communication facilities of a regulated
public utility.
(c) "Background investigation" means a security and credit
investigation of a person who has applied for a video lottery
license or permit, or who has been granted a video lottery
license or permit.
(d) "Commission" or "state lottery commission" means the
West Virginia lottery commission created by article twenty-two of
this chapter.
(e) "Control" means the authority to direct the management
and policies of an applicant or a license or permit holder.
(f) "Costs" means the expenses incurred by the commission in
the testing and examination of video lottery terminals and the
performance of background investigations and other related
activities which are charged to and collected from applicants or
license or permit holders.
(g) "Director" means the individual appointed by the
governor to provide management and administration necessary to
direct the state lottery office.
(h) "Disable" or "terminal disable" means the process of
executing a shutdown command from the central control computer
which causes video lottery terminals to cease functioning.
(i) "Display" means the visual presentation of video lottery
game features on the video display monitor or screen of a video
lottery terminal.
(j) "License" or "video lottery license" means authorization
granted by the commission to a racetrack licensed by the West
Virginia racing commission to conduct thoroughbred or greyhound
racing meetings pursuant to article twenty-three, chapter
nineteen, of this code, permitting the racetrack to operate video
lottery terminals authorized by the commission.
(k) "Lottery" means the public gaming systems or games
established and operated by the state lottery commission.
(l) "Net terminal income" means the total amount of cash
inserted into a video lottery terminal minus the total value of
game credits which are cleared from the video lottery terminal in
exchange for winning redemption tickets.
(m) "Manufacturer" means any person holding a permit granted
by the commission to engage in the business of designing,
building, constructing, assembling or manufacturing video lottery
terminals, the electronic computer components thereof, the random
number generator thereof, or the cabinet in which it is housed,
and whose product is intended for sale, lease or other assignment
to a licensed racetrack in West Virginia.
(n) "Own" means any beneficial or proprietary interest inany property or business of an applicant or licensed racetrack.
(o) "Permit" means authorization granted by the commission
to a person to function as either a video lottery manufacturer,
service technician or validation manager.
(p) "Person" means any natural person, corporation,
association, partnership, limited partnership or other entity,
regardless of its form, structure or nature.
(q) "Player" means a person who plays a video lottery game
on a video lottery terminal at a racetrack licensed by the
commission to conduct video lottery games.
(r) "Service technician" means a person who holds a permit
issued by the commission and who performs service, maintenance
and repair on licensed video lottery terminals in this state.
(s) "Video lottery game" means a commission approved, owned
and controlled electronically simulated game of chance which is
displayed on the screen or video monitor of a video lottery
terminal and which: (1) Is connected to the commission's central
control computer by on-line or dial-up communication system; (2)
is initiated by a player's insertion of coins or currency into a
video lottery terminal, which causes game play credits to be
displayed on the video lottery terminal and, with respect to
which, each game play credit entitles a player to choose one or
more symbols or numbers or to cause the video lottery terminal to
randomly select symbols or numbers; (3) is to allow the player to
win additional game play credits based upon game rules which
establishes the random selection of winning combinations ofsymbols or numbers or both and the number of free play credits to
be awarded for each winning combination of symbols or numbers or
both; (4) is based upon computer generated selection of winning
combinations based totally on chance, but a video lottery game
may allow a player to use knowledge of probabilities in deciding
which numbers or symbols to choose in the course of video lottery
game play; and (5) allows a player at any time to simultaneously
clear all game play credits and print a redemption ticket
entitling the player to receive the cash value of the free plays
cleared from the video lottery terminal.
(t) "Validation manager" means a person who holds a permit
issued by the commission and who performs video lottery ticket
redemption services.
(u) "Video lottery terminal" means a commission approved
machine or device, which is compatible with the commission's
central computer system, and which is used for the purpose of
playing commission licensed video lottery games.
(v) "Wager" means a sum of money or thing of value risked on
an uncertain occurrence.
§29-22A-4. Video lottery games authorized.
The state lottery commission is authorized to implement and
operate video lottery games at pari-mutuel racing facilities in
this state in accordance with the provisions of this article and
the applicable provisions of article twenty-two of this chapter:
Provided, That a pari-mutuel racing facility for horse racing, in
order to be eligible to operate video lottery games, must race atleast two hundred twenty-three days a year with at least ten
races a day: Provided, however, That a pari-mutuel racing
facility for dog racing, in order to be eligible to operate video
lottery games, must race at least three hundred eleven days a
year with at least fifteen races a day. The provisions of
article twenty-two of this chapter apply to this article, except
in the event of conflict or inconsistency between any of the
provisions of this article and the provisions of article twenty-
two of this chapter. In that event, the provisions of this
article shall supersede any conflicting or inconsistent
provisions contained in article twenty-two of this chapter.
§29-22A-5. Video lottery terminal requirements; application for
approval of a video lottery terminal; testing of video
lottery terminals; report of test results; modifications to
previously approved models; conformity to prototype; seizure
and destruction of terminals.
(a) Video lottery terminals registered with and approved by
the commission may offer video lottery games utilizing specific
game rules separately filed from time to time by the commission
with the secretary of state. A video lottery terminal may
simulate the play of one or more video lottery games.
(b) A manufacturer may not sell or lease a video lottery
terminal for placement at a licensed racetrack in this state
unless the terminal has been approved by the commission. Only
manufacturers with permits may apply for approval of a video
lottery terminal or associated equipment. The manufacturer shallsubmit two copies of terminal illustrations, schematics, block
diagrams, circuit analysis, technical and operation manuals and
any other information requested by the commission for the purpose
of analyzing and testing the video lottery terminal or associated
equipment.
(c) The commission may require that two working models of a
video lottery terminal be transported to the location designated
by the commission for testing, examination and analysis.
(1) The manufacturer shall pay all costs of testing,
examination, analysis and transportation of such video lottery
terminal models. The testing, examination and analysis of any
video lottery terminal model may require dismantling of the
terminal and some tests may result in damage or destruction to
one or more electronic components of such terminal model. The
commission may require that the manufacturer provide specialized
equipment or pay for the services of an independent technical
expert to test the terminal.
(2) The manufacturer shall pay the cost of transportation of
two video lottery terminals to lottery headquarters. The
commission shall conduct an acceptance test to determine terminal
functions and central system compatibility. If the video lottery
terminal fails the commission conducted acceptance test, the
manufacturer shall make all modifications required by the
commission.
(d) After each test has been completed, the commission shall
provide the terminal manufacturer with a report containingfindings, conclusions and pass/fail results. The report may
contain recommendations for video lottery terminal modification
to bring the terminal into compliance with the provisions of this
article. Prior to approving a particular terminal model, the
commission may require a trial period not in excess of sixty days
for a licensed racetrack to test the terminal. During the trial
period, the manufacturer may not make any modifications to the
terminal model unless such modifications are approved by the
commission.
(e) The video lottery terminal manufacturer and licensed
racetrack are jointly responsible for the assembly and
installation of all video lottery terminals and associated
equipment. The manufacturer and licensed racetrack shall not
change the assembly or operational functions of a terminal
licensed for placement in West Virginia unless a request for
modification of an existing video terminal prototype is approved
by the commission. The request must contain a detailed
description of the type of change, the reasons for the change and
technical documentation of the change.
(f) Each video lottery terminal approved for placement at a
licensed racetrack must conform to the exact specifications of
the video lottery terminal prototype tested and approved by the
commission. If any video lottery terminal or any video lottery
terminal modification, which has not been approved by the
commission, is supplied by a manufacturer and operated by a
licensed racetrack, the commission shall seize and destroy all ofthat licensed racetrack's and manufacturer's noncomplying video
lottery terminals and shall suspend the license and permit of the
licensed racetrack and manufacturer.
§29-22A-6. Video lottery terminal hardware and software
requirements; hardware specifications; software requirements
for randomness testing; software requirements for percentage
payout; software requirements for continuation of video
lottery game after malfunction; software requirements for
play transaction records.
(a) Video lottery terminals licensed for placement in this
state shall meet the following hardware specifications:
(1) Electrical and mechanical parts and design principles
may not subject a player to physical hazards or injury.
(2) A surge protector shall be installed on the electrical
power supply line to each video lottery terminal. A battery or
equivalent power back-up for the electronic meters shall be
capable of maintaining accuracy of all accounting records and
terminal status reports for a period of one hundred eighty days
after power is disconnected from the terminal. The power back-up
device shall be located within the locked logic board compartment
of the video lottery terminal.
(3) An on/off switch which controls the electrical current
used in the operation of the terminal shall be located in an
accessible place within the interior of the video lottery
terminal.
(4) The operation of each video lottery terminal may not beadversely affected by any static discharge or other
electromagnetic interference.
(5) A minimum of one electronic or mechanical coin acceptor
or other means accurately and efficiently to establish credits
shall be installed on each video lottery terminal. Each video
lottery terminal may also contain bill acceptors for one or more
of the following: One dollar bills, five dollar bills, ten
dollar bills and twenty dollar bills. All coin and bill
acceptors must be approved by the commission prior to use on any
video lottery terminal in this state.
(6) Access to the interior of video lottery terminal shall
be controlled through a series of locks and seals.
(7) The main logic boards and all erasable programmable
read-only memory chips (EPROMS) are deemed to be owned by the
commission and shall be located in a separate locked and sealed
area within the video lottery terminal.
(8) The cash compartment shall be located in a separate
locked area within or attached to the video lottery terminal.
(9) No hardware switches, jumpers, wire posts or any other
means of manipulation may be installed which alter the pay tables
or payout percentages in the operation of a game. Hardware
switches on a video lottery terminal to control the terminal's
graphic routines, speed of play, sound and other purely cosmetic
features may be approved by the commission.
(10) Each video lottery terminal shall contain a single
printing mechanism capable of printing an original ticket andretaining an exact legible copy within the video lottery terminal
or other means of capturing and retaining an electronic copy of
the ticket data as approved by the commission. The following
information shall be recorded on the ticket when credits accrued
on a video lottery terminal are redeemed for cash:
(A) The number of credits accrued;
(B) Value of the credits in dollars and cents displayed in
both numeric and written form;
(C) Time of day and date;
(D) Validation number; and
(E) Any other information required by the commission.
(11) A permanently installed and affixed identification
plate shall appear on the exterior of each video lottery terminal
and the following information shall be on the plate:
(A) Manufacturer of the video lottery terminal;
(B) Serial number of the terminal; and
(C) Model number of the terminal.
(12) The rules of play for each game shall be displayed on
the video lottery terminal face or screen. The commission may
reject any rules of play which are incomplete, confusing,
misleading or inconsistent with game rules approved by the
commission. For each video lottery game, there shall be a
display detailing the credits awarded for the occurrence of each
possible winning combination of numbers or symbols. A video
lottery terminal may not allow more than two dollars to be
wagered on a single game. All information required by thissubdivision shall be displayed under glass or another transparent
substance. No stickers or other removable devices may be placed
on the video lottery terminal screen or face without the prior
approval of the commission.
(13) Communication equipment and devices shall be installed
to enable each video lottery terminal to communicate with the
commission's central computer system by use of a communications
protocol provided by the commission to each permitted
manufacturer, which protocol shall include information retrieval
and terminal activation and disable programs, and the commission
may require each licensed racetrack to pay the cost of a central
site computer as a part of the licensing requirement.
(14) All video lottery terminals shall have a security
system which temporarily disables the gaming function of the
terminal while opened.
(b) Each video lottery terminal shall have a random number
generator to determine randomly the occurrence of each specific
symbol or number used in video lottery games. A selection
process is random if it meets the following statistical criteria:
(1) Chi-square test. Each symbol or number shall satisfy
the ninety-nine percent confidence limit using the standard
chi-square statistical analysis of the difference between the
expected result and the observed result.
(2) Runs test. Each symbol or number may not produce a
significant statistic with regard to producing patterns of
occurrences. Each symbol or number is random if it meets theninety-nine percent confidence level with regard to the "runs
test" for the existence of recurring patterns within a set of
data.
(3) Correlation test. Each pair of symbols or numbers is
random if it meets the ninety-nine percent confidence level using
standard correlation analysis to determine whether each symbol or
number is independently chosen without regard to another symbol
or number within a single game play.
(4) Serial correlation test. Each symbol or number is
random if it meets the ninety-nine percent confidence level using
standard serial correlation analysis to determine whether each
symbol or number is independently chosen without reference to the
same symbol or number in a previous game.
(c) Each video lottery terminal shall meet the following
maximum and minimum theoretical percentage payout during the
expected lifetime of said terminal:
(1) Video lottery games shall pay out no less than eighty
percent and no more than ninety-five percent of the amount
wagered. The theoretical payout percentage will be determined
using standard methods of probability theory.
(2) Manufacturers must file a request and receive approval
from the commission prior to manufacturing for placement in this
state video lottery terminals programmed for a payout greater
than ninety-two percent of the amount wagered. Commission
approval must be obtained prior to applying for testing of such
high payout terminals.
(3) Each terminal shall have a probability greater than one
in seventeen million of obtaining the maximum payout for each
play.
(d) Each video lottery terminal shall be capable of
continuing the current game with all current game features after
a video lottery terminal malfunction is cleared. If a video
lottery terminal is rendered totally inoperable during game play,
the current wager and all credits appearing on the video lottery
terminal screen prior to the malfunction shall be returned to the
player.
(e) Each video lottery terminal shall at all times maintain
electronic accounting regardless of whether the terminal is being
supplied with electrical power. Each meter shall be capable of
maintaining a total of no less than eight digits in length for
each type of data required. The electronic meters shall record
the following information:
(1) Number of coins inserted by players or the coin
equivalent if a bill acceptor is being used;
(2) Number of credits wagered;
(3) Number of credits won;
(4) Number of credits paid out by a printed ticket;
(5) Number of times the logic area was accessed;
(6) Number of times the cash door was accessed;
(7) Number of credits wagered in the current game;
(8) Number of credits won in the last complete video lottery
game; and
(9) Number of cumulative credits representing money inserted
by a player and credits for video lottery games won but not
collected.
(f) No video lottery terminal may have any mechanism which
allows the electronic accounting meters to clear automatically.
Electronic accounting meters may not be cleared without the prior
approval of the commission. Both before and after any electronic
accounting meter is cleared, all meter readings shall be recorded
in the presence of a commission employee.
§29-22A-7. License and permit qualifications; individual
qualifications; applicant required to furnish information;
waiver of liability; oath or affirmation; duty to provide
accurate and material information.
(a) No video lottery license or permit may be granted unless
the commission has determined that the applicant satisfies all of
the following qualifications:
(1) An applicant for a video lottery license must hold a
valid racing license granted by the West Virginia racing
commission under provisions of article twenty-three, chapter
nineteen of this code;
(2) An applicant must be a person of good character and
integrity;
(3) An applicant must be a person whose background,
including criminal record, reputation and associations, does not
pose a threat to the security and integrity of the lottery or to
the public interest of the state. A person who has beenconvicted of any violation of article twenty-two of this chapter
or of this article or of any crime related to theft, bribery,
gambling or involving moral turpitude is not eligible for any
license or permit. The commission shall revoke the license or
permit of any person who is convicted of any such crime after a
license or permit is granted;
(4) An applicant must be a person who demonstrates the
business ability and experience necessary to establish, operate
and maintain the business for which a video lottery license or
permit application is made;
(5) An applicant must be a person who has secured adequate
financing for the business for which a video lottery license or
permit application is made. The commission shall determine
whether financing is from a source which meets the qualifications
of this section, and is adequate to support the successful
performance of the duties and responsibilities of the licensed
racetrack or permit holder. An applicant for a video lottery
license shall disclose all financing or refinancing arrangements
for the purchase, lease or other acquisition of video lottery
terminals and associated equipment in the degree of detail
requested by the commission. A licensed racetrack shall request
commission approval of any change in financing or lease
arrangements at least thirty days before the effective date of
the change;
(6) A racetrack applying for a video lottery license or a
license renewal must present to the commission evidence of theexistence of an agreement between the applicant and the
representative of a majority of the horse owners and trainers or
the kennel owners for the applicable racetrack who hold permits
required by section two, article twenty-three, chapter nineteen
of this code regarding the proceeds from video lottery terminals.
(b) No video lottery license or permit may be granted to an
applicant until the commission determines that each person who
has control of the applicant meets all applicable qualifications
of subsection (a) of this section. The following persons are
deemed to have control of an applicant:
(1) Each person associated with a corporate applicant,
including any corporate holding company, parent company or
subsidiary company of the applicant (but not including a bank or
other licensed lending institution which holds a mortgage or
other lien acquired in the ordinary course of business) who has
the ability to control the activities of the corporate applicant
or elect a majority of the board of directors of that
corporation;
(2) Each person associated with a noncorporate applicant who
directly or indirectly holds any beneficial or proprietary
interest in the applicant or who the commission determines to
have the ability to control the applicant;
(3) Key personnel of an applicant, including any executive,
employee or agent, having the power to exercise significant
influence over decisions concerning any part of the applicant's
business operation.
(c) Applicants must furnish all information, including
financial data and documents, certifications, consents, waivers,
individual history forms and other materials requested by the
commission for purposes of determining qualifications for a
license or permit. No video lottery license or permit may be
granted to an applicant who fails to provide information and
documentation requested by the commission. The burden of proving
qualification for any video lottery license or permit shall be on
the applicant.
(d) Each applicant shall bear all risks of adverse public
notice, embarrassment, criticism, damages or financial loss which
may result from any disclosure or publication of any material or
information obtained by the commission pursuant to action on an
application. The applicant shall, as a part of its application,
expressly waive any and all claims against the commission, the
state of West Virginia and the employees of either for damages as
a result of any background investigation, disclosure or
publication relating to an application for a video lottery
license or permit.
(e) All application, registration and disclosure forms and
other documents submitted to the commission by or on behalf of
the applicant for purposes of determining qualification for a
video lottery license or permit shall be sworn to or affirmed
before an officer qualified to administer oaths.
(f) An applicant who knowingly fails to reveal any fact
material to qualification or who knowingly submits false ormisleading material information is ineligible for a video lottery
license or permit.
§29-22A-8. Form of application; local option elections; issuance
of license; notice of incomplete application; notice of
license or permit denial, suspension or revocation;
procedure for review of license or permit denial, suspension
or revocation; fees, renewal fees and renewal dates;
bonding; renewal of licenses and permits; notice of change
affecting license or permit; license or permit not
transferrable or assignable.
(a) The commission shall determine the forms of application
to be used and shall not consider incomplete applications.
Applications may be considered when the applicant has completed
and executed all forms and documents required by the commission
and all application fees and costs have been paid.
(b) Any horse or dog racing association licensed under the
provisions of article twenty-three, chapter nineteen of this code
to conduct horse or dog racing meetings and desiring to conduct
video lottery games authorized by the state lottery commission,
shall file an application with the commission. Upon receipt of
the application, the commission shall forthwith prepare and
publish a notice to the public by publication thereof as a Class
II-0 legal publication in compliance with the provisions of
article three, chapter fifty-nine of this code, and the
publication area shall be the area in which the track is located,
that an application has been received and that the commission mayissue a license to the applicant at the expiration of sixty days
from the date of the first publication of the notice (which date
shall be specified in the notice) unless within that time a
written petition of qualified voters residing within the county
equal to at least five percent of the number of persons who were
registered to vote in the next preceding general election is
received by the county commission of the county in which the
horse or dog racetrack is located. The petition may be in any
number of counterparts.
The petition shall be in the following form:
Petition For Local Option Election
We, the undersigned legally qualified voters, resident
within the county of __________________, do hereby petition that
a special election be held within the county of _________________
upon the following question: Shall West Virginia lottery
commission video lottery games be permitted at the [name of
track] Racetrack within the area in which pari-mutuel betting is
authorized by law?
NameAddressDate
(Post office or street address)
(c) In the event the petition is not received within the
required time frame, the commission shall issue the requested
license, provided all other licensing requirements have been met.
If, however, there has been a filing of such a petition within
the required period of time signed by not less than five percent
of the qualified voters within the county, the county commissionshall give notice of a special local option election by
publication thereof as a Class II-0 legal advertisement in
compliance with the provisions of article three, chapter fifty-
nine of this code, and the publication area for the publication
shall be the area in which the election is to be held. The
notice shall be published within fourteen consecutive days next
preceding the election. The election shall be held not more than
ninety nor less than sixty days from the filing of the petition.
Local option elections shall be conducted within the county in
the same manner provided for general elections. A local option
election may not be held within sixty days of a primary, general
or municipal election.
On the local option election ballot shall be printed the
following:
Shall West Virginia lottery commission video lottery games
be permitted within an area in which pari-mutuel betting is
permitted at the [name of racetrack]?
___ ___
/___/ Yes /___/ No
(Place a cross mark in the square opposite your choice.)
The ballots shall be counted, returns made and canvassed as
in general elections, and the results certified by the
commissioners of election to the county commission. The county
commission shall, without delay, certify the result of the
election to the commission.
(d) Upon receipt of the results of the election from the
county commission, and if a majority has voted "yes," the
commission shall issue the requested license if the applicant is
otherwise qualified for the license. If a majority has voted
"no," the commission shall so notify the applicant, the
application shall be denied, and another election on such issue
shall not be held for a period of two years.
(e) If the commission has issued a video lottery license to
a racing association in accordance with the provisions of this
section, no local option election may thereafter be conducted
with respect to the permitted or authorized video lottery games.
If the commission, prior to the first day of November, one
thousand nine hundred ninety-three, has authorized any racetrack
to conduct video lottery games at its pari-mutuel facility, the
games may continue to operate pending the results of any local
option election under this section.
(f) The commission may not issue any license or permit until
background investigations are concluded. The commission mustmake an affirmative determination that the applicant is qualified
and the applicable license or permit fees have been paid prior to
issuing any license or permit.
(g) The commission shall notify the applicant if an
application is incomplete and the notification shall state the
deficiencies in the application.
(h) The commission shall notify applicants in writing of the
denial, suspension or revocation of a permit or license and the
reasons for the denial, suspension or revocation in accordance
with the provisions of section fifteen of this article.
(i) An applicant may request a hearing to review a license
or permit denial, suspension or revocation in accordance with
section fifteen of this article.
(j) The following license or permit fees shall be paid
annually by each licensed racetrack, or permitted manufacturer,
service technician or validation manager:
(1) Racetrack: $1,000.
(2) Manufacturer: $10,000.
(3) Service technician: $100.
(4) Validation manager: $50.
The fees shall be paid to the commission at the time of
license or permit application and on the first day of July of
each year thereafter, at which time the license or permit may be
renewed.
(k) An applicant for a video lottery license shall, prior to
the issuance of the license, post a bond or irrevocable letter ofcredit in a manner and in an amount established by the
commission. The bond shall be issued by a surety company
authorized to transact business in West Virginia and the company
shall be approved by the insurance commissioner of this state as
to solvency and responsibility.
(l) The commission shall renew video lottery licenses and
permits annually as of the first day of July of each year, if
each person seeking license or permit renewal submits the
applicable renewal fee, completes all renewal forms provided by
the commission, and continues to meet all qualifications for a
license or permit.
(m) License and permit holders shall notify the commission
of any proposed change of ownership or control of the license or
permit holder and of all other transactions or occurrences
relevant to license or permit qualification. In order for a
license or permit to remain in effect, commission approval is
required prior to completion of any proposed change of ownership
or control of a license or permit holder.
(n) A license or permit is a privilege personal to the
license or permit holder and is not a legal right. A license or
permit granted or renewed pursuant to this article may not be
transferred or assigned to another person, nor may a license or
a permit be pledged as collateral. The purchaser or successor of
any license or permit holder must independently qualify for a
license or permit. The sale of more than five percent of a
license or permit holder's voting stock, or more than fivepercent of the voting stock of a corporation which controls the
license or permit holder or the sale of a license or permit
holder's assets, other than those bought and sold in the ordinary
course of business, or any interest therein, to any person not
already determined to have met the qualifications of section
seven of this article voids the license unless the sale has been
approved in advance by the commission.
§29-22A-9. General duties of all video lottery license and
permit holders; duties of permitted manufacturers; duties of
permitted service technicians; duties of permitted
validation managers; duties of licensed racetracks.
(a) The general duties required of all video lottery license
and permit holders are as follows:
(1) Promptly report to the commission any facts or
circumstances related to video lottery operations which
constitute a violation of state or federal law;
(2) Conduct all video lottery activities and functions in a
manner which does not pose a threat to the public health, safety
or welfare of the citizens of this state, and which does not
adversely affect the security or integrity of the lottery;
(3) Hold the commission and this state harmless from and
defend and pay for the defense of any and all claims which may be
asserted against a license or permit holder, the commission, the
state or the employees thereof, arising from the license or
permit holder's participation in the video lottery system
authorized by this article;
(4) Assist the commission in maximizing video lottery
revenues;
(5) Maintain all records required by the commission;
(6) Upon request by the commission, provide the commission
access to all records and the physical premises of the business
or businesses where the license or permit holder's video lottery
activities occur, for the purpose of monitoring or inspecting the
license or permit holder's activities and the video lottery
games, video lottery terminals and associated equipment;
(7) Keep current in all payments and obligations to the
commission.
(b) The specific duties required of manufacturers are as
follows:
(1) Manufacture terminals and associated equipment for
placement in this state in accordance with the specifications and
procedures specified in sections five and six of this article;
(2) Manufacture terminals and associated equipment to ensure
timely delivery to licensed racetracks;
(3) Maintain and provide an inventory of spare parts to
assure the timely repair and continuous operation of licensed
video lottery terminals intended for placement in this state;
(4) Provide to licensed racetracks and permitted service
technicians technical assistance and training in the service and
repair of video lottery terminals and associated equipment so as
to assure the continuous authorized operation and play of such
video lottery terminals;
(5) Obtain certification of compliance under the provisions
of part fifteen of the federal communication commission rules for
all video lottery terminals placed in this state.
(c) The specific duties required of service technicians are
as follows:
(1) Maintain all skills necessary for the timely repair and
service of licensed video lottery terminals and associated
equipment so as to ensure the continued, approved operation of
those terminals;
(2) Attend all commission mandated meetings, seminars and
training sessions concerning the repair and maintenance of
licensed video lottery terminals and associated equipment;
(3) Promptly notify the commission of any electronic or
mechanical video lottery terminal malfunctions.
(d) The specific duties required of validation managers are
as follows:
(1) Attend all commission mandated meetings, seminars and
training sessions concerning the validation and redemption of
video lottery winning tickets and the operation of all ticket
validation terminals and equipment;
(2) Maintain all skills necessary for the accurate
validation of video lottery tickets;
(3) Supervise video lottery ticket validation procedures at
the applicable licensed racetrack.
(e) The specific duties required of all licensed racetracks
are as follows:
(1) Acquire video lottery terminals by purchase, lease or
other assignment and provide a secure location for the placement,
operation and play of the video lottery terminals;
(2) Pay for the installation and operation of commission
approved telephone lines to provide direct dial-up or on-line
communication between each video lottery terminal and the
commission's central control computer;
(3) Permit no person to tamper with or interfere with the
operation of any video lottery terminal;
(4) Ensure that telephone lines from the commission's
central control computer to the video lottery terminals located
at the licensed racetrack are at all times connected and prevent
any person from tampering or interfering with the operation of
the telephone lines;
(5) Ensure that video lottery terminals are within the sight
and control of designated employees of the licensed racetrack;
(6) Ensure that video lottery terminals are placed and
remain placed in the specific locations within the licensed
racetrack which have been approved by the commission. No video
lottery terminal or terminals at a racetrack shall be relocated
without the prior approval of the commission;
(7) Monitor video lottery terminals to prevent access to or
play by persons who are under the age of eighteen years or who
are visibly intoxicated;
(8) Maintain at all times sufficient change and cash in the
denominations accepted by the video lottery terminals;
(9) Extend no credit for video lottery terminal play;
(10) Pay for all credits won upon presentment of a valid
winning video lottery ticket;
(11) Report promptly to the manufacturer and the commission
all video lottery terminal malfunctions and notify the commission
of the failure of a manufacturer or service technician to provide
prompt service and repair of such terminals and associated
equipment;
(12) Conduct no video lottery advertising and promotional
activities without the prior written approval of the director;
(13) Install, post and display prominently at locations
within or about the licensed racetrack, signs, redemption
information and other promotional material as required by the
commission;
(14) Permit video lottery to be played only during those
hours established and approved by the commission;
(15) Maintain general liability insurance coverage for all
video lottery terminals in an amount of at least two million
dollars per claim;
(16) Promptly notify the commission in writing of any breaks
or tears to any logic unit seals;
(17) Assume liability for lost or stolen money from any
video lottery terminal.
§29-22A-10. Accounting and reporting; commission to provide
communications protocol data; distribution of net terminal
income; remittance through electronic transfer of funds;
establishment of accounts and nonpayment penalties;
commission control of accounting for net terminal income;
settlement of accounts; manual reporting and payment may be
required; request for reports; examination of accounts and
records.
(a) The commission shall provide to manufacturers, or
applicants applying for a manufacturer's permit, the protocol
documentation data necessary to enable the respective
manufacturer's video lottery terminals to communicate with the
commission's central computer for transmitting auditing program
information and for activation and disabling of video lottery
terminals.
(b) Net terminal income shall be divided as set out in this
subsection. The licensed racetrack's share shall be in lieu of
all lottery agent commissions and shall be deemed to cover all
costs and expenses required to be expended by the licensed
racetrack in connection with video lottery operations. The
division shall be as follows:
(1) The commission shall receive thirty percent of net
terminal income, which shall be paid into the general revenue
fund of the state to be used for teacher's and state employees'
salaries and raises;
(2) Horsemen, dog and kennel owners shall receive, as
increased purses, fifteen percent of net terminal income;
(3) The municipality or county where the video lottery
machines are located shall receive five percent of the netterminal income;
(4) The licensed racetrack shall receive fifty percent of
net terminal income.
(c) The state's percentage of net terminal income shall be
remitted to the commission through the electronic transfer of
funds. Licensed racetracks shall furnish to the commission all
information and bank authorizations required to facilitate the
timely transfer of moneys to the commission. Licensed racetracks
must provide the commission thirty days' advance notice of any
proposed account changes in order to assure the uninterrupted
electronic transfer of funds.
(d) Each licensed racetrack shall maintain in its account a
balance sufficient to cover the state's percentage of net
terminal income to be electronically transferred by the
commission on dates established by the commission. Upon a
licensed racetrack's failure to maintain this balance, the
commission may disable all of a licensed racetrack's video
lottery terminals until full payment of all amounts due is made.
Interest shall accrue on any unpaid balance at a rate consistent
with the amount charged for state income tax delinquency under
chapter eleven of this code, which interest shall begin to accrue
on the date payment is due to the commission.
(e) The commission's central control computer shall keep
accurate records of all income generated by each video lottery
terminal. The commission shall prepare and mail to the licensed
racetrack a statement reflecting the net terminal income and thestate's percentage of that amount prior to the date payment is
remitted through the electronic transfer of funds. Each licensed
racetrack must report to the commission any discrepancies in net
terminal income between the commission's statement and each
terminal's mechanical and electronic meter readings. The
licensed racetrack shall be solely responsible for resolving net
terminal income discrepancies between actual money collected and
the amount shown on the accounting meters or on the commission's
billing statement.
(f) Until an accounting discrepancy is resolved in favor of
the licensed racetrack, the commission may make no credit
adjustments. For any video lottery terminal reflecting a
discrepancy, the licensed racetrack shall submit to the
commission the maintenance log which includes current mechanical
meter readings and the audit ticket which contains electronic
meter readings generated by the terminal's software. If the
meter readings and the commission's records cannot be reconciled,
final disposition of the matter shall be determined by the
commission. Any accounting discrepancies which cannot be
otherwise resolved shall be resolved in favor of the commission.
(g) Licensed racetracks shall remit payment by mail of the
state's percentage of net terminal income if the electronic
transfer of funds is not operational or the commission notifies
licensed racetracks that remittance by this method is required.
The licensed racetracks shall report the amount of net terminal
income per terminal and remit payment for the state's percentageof the net terminal income generated from its terminals during
the reporting period. The remittance shall be sealed in a
properly addressed and stamped envelope and deposited in the
United States mail no later than noon on the day when the payment
would otherwise be completed through electronic funds transfer.
(h) Licensed racetracks may, upon request, receive
additional reports of play transactions for their respective
video lottery terminals and other marketing information not
considered confidential by the commission. The commission may
charge a reasonable fee for the cost of producing and mailing any
report other than the billing statements.
(i) The commission has the right to examine all accounts,
bank accounts, financial statements and records in a licensed
racetrack's possession, under its control or in which it has an
interest and the licensed racetrack must authorize all third
parties in possession or in control of the accounts or records to
allow examination of any of those accounts or records by the
commission.
§29-22A-11. Maintenance of video lottery terminals;
manufacturers required to provide training; notice of
availability of training; reports and certificates of
training programs; terminals to be maintained in the
condition approved; maintenance log required; keys to video
lottery terminals; notice of repairs to the logic area;
notice of broken seals on logic board.
(a) No video lottery terminal may be placed in operation inthis state until the manufacturer provides training in the
service and repair of each approved video lottery terminal model
and service technicians complete such training. Manufacturers
must submit to the commission the following information on each
training program conducted:
(1) An outline of the training curriculum;
(2) A list of the instructors and their qualifications;
(3) Instructional materials; and
(4) The time, dates and location of the training programs.
(b) Manufacturers shall notify all licensed racetracks who
have purchased or leased that manufacturer's video lottery
terminals of all scheduled training programs. Training programs
must be scheduled at convenient locations within this state to
facilitate attendance by service technicians. Manufacturers must
inform licensed racetracks of any new developments in the service
and repair of video lottery terminals and provide appropriate
subsequent training programs.
(c) The manufacturers shall issue training certificates to
each person upon successful completion of a video lottery
training program. The certificate shall include the name of the
person who completed the training program and the date and the
location of the training program. A person who successfully
completes training is eligible for a service technician's permit.
No person may conduct maintenance on any video lottery terminal
or associated equipment unless the commission has issued a
service technician permit to that person.
(d) Each manufacturer shall file with the commission the
following information within two weeks after the completion of a
training program:
(1) The name of each person who attended and completed the
training program;
(2) The name of the manufacturer offering the course;
(3) The manufacturer's video lottery terminal models on
which training for service and repair was provided;
(4) The date and location of the training program; and
(5) Copies of all certificates of completion.
(e) A written maintenance log shall be kept within the main
cabinet access area in each video lottery terminal. Every
person, including lottery personnel, who gains entry into any
internal space of a video lottery terminal must sign the log,
record the time and date of entry, record the mechanical meter
readings and list the areas inspected or repaired. The
maintenance log forms shall be retained by licensed racetracks
for a period of three years from the date of the last entry. The
maintenance logs shall be available upon request for inspection
by the commission.
(f) Licensed racetracks shall provide the commission with a
master key for access into the main cabinet door of each video
lottery terminal placed in operation. A logic box seal shall be
provided by the commission. The seal shall be affixed by
commission personnel to prevent unauthorized access to the video
lottery terminal logic unit.
(g) No repairs to, or replacement of, the logic board or
circuitry within the logic area may occur unless authorized
commission personnel are present and observe the repairs or
replacement. The logic area seal shall not be broken by anyone
other than authorized commission personnel. Each service
technician shall submit a written report within twenty-four hours
after the repairs or replacement are completed and the report
shall include the serial number of any replacement board and the
new logic area seal number.
(h) The software EPROMS on the logic board of each video
lottery terminal shall be tested by the commission prior to
sealing the logic area. Licensed racetracks or permit holders
shall notify the commission in writing of any discovered damage,
tears or breaks in the logic area seal and, upon notice, the
video lottery terminal shall be disabled. The video lottery
terminal shall remain disabled until completion by the commission
of an investigation of the seal damage.
§29-22A-12. Number and location of video lottery terminals;
security.
(a) A licensed racetrack has the right to install and
operate up to three hundred video lottery terminals at a licensed
racetrack. A licensed racetrack may apply to the commission for
authorization to install and operate more than three hundred
video lottery terminals. If the commission determines that the
installation of additional machines is in the best interest of
the licensed racetrack, the lottery commission and the citizensof this state, the commission may grant permission to install and
operate additional machines, but the licensed racetrack may not
have more than four hundred video lottery terminals in operation
at any time.
(b) All video lottery terminals in licensed racetracks shall
be physically located as follows:
(1) The video lottery location shall be continuously
monitored through the use of a closed circuit television system
capable of recording activity for a continuous twenty-four hour
period. All video tapes shall be retained for a period of at
least thirty days;
(2) Access to video lottery terminal locations shall be
restricted to persons legally entitled by age to play video
lottery games;
(3) The licensed racetrack shall submit for commission
approval a floor plan of the area or areas where video lottery
terminals are to be operated showing terminal locations and
security camera mount locations;
(4) No video lottery terminal may be relocated without prior
approval from the commission; and
(5) No operational video lottery terminals may be located in
any building or structure which is not a site where pari-mutuel
wagering is permitted under the provisions of article twenty-
three, chapter nineteen of this code.
(c) Security personnel shall be present during all hours of
operation at each video lottery terminal location. Each licenseholder shall employ such number of security personnel as the
commission determines to be necessary to provide for safe and
approved operation of the video lottery facilities and the safety
and well-being of the players.
§29-22A-13. Payment of credits; no state liability; method of
payment; restrictions on payment of credits; redeemed
tickets required to be defaced; liability for video lottery
terminal malfunction.
(a) No payment for credits awarded on a video lottery
terminal may be made unless the ticket meets the following
requirements:
(1) The ticket is fully legible and printed on paper
approved by the commission and the ticket contains all
information required by this article;
(2) The ticket is not mutilated, altered, unreadable or
tampered with in any manner;
(3) The ticket is not counterfeit, in whole or in part; and
(4) The ticket is presented by a person authorized to play
video lottery pursuant to this article.
(b) Each licensed racetrack shall designate validation
managers and employees authorized to redeem tickets during the
business hours of operation. Credits shall be immediately paid
in cash or by check when a player presents a valid ticket for
payment. No credits may be paid in tokens, chips or merchandise.
(c) Licensed racetracks shall not redeem tickets for credits
awarded on video lottery terminals which are not located on itspremises. A ticket must be presented for payment no later than
ten days after the date the ticket is printed. The commission is
not liable for the payment of any video lottery ticket credits.
(d) All tickets redeemed by a licensed racetrack shall be
defaced in a manner which prevents any subsequent presentment and
payment.
(e) The commission is not responsible for any video lottery
terminal malfunction which causes a credit to be wrongfully
awarded or denied to players. The licensed racetrack is solely
responsible for any wrongful award or denial of credits.
§29-22A-14. Transportation and registration of video lottery.
(a) Trucking companies or common carriers shipping video
lottery terminals shall be bonded and shall ship all terminals in
sealed trailers.
(b) A manufacturer transporting one or more video lottery
terminals into this state shall, prior to shipment, provide the
commission with the following information on forms prescribed by
the commission:
(1) The full name, address and permit number of the person
shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name, address and license number of the
licensed racetrack to which the video lottery terminals are being
sent and the destination of the terminals if different from the
address;
(4) The number of video lottery terminals in the shipment;
(5) The serial number of each video lottery terminal in the
shipment;
(6) The model number and description of each video lottery
terminal in the shipment; and
(7) The expected arrival date of the video lottery terminals
at their respective destination within this state.
(c) A licensed racetrack which purchases or leases a video
lottery terminal shall, upon receipt of the terminal, provide the
commission with the following information on forms prescribed by
the commission:
(1) The full name, address and license number of the
licensed racetrack receiving the video lottery terminal;
(2) The full name, address and permit number of the
manufacturer from whom the video lottery terminal was received;
(3) The serial number of each video lottery terminal
received;
(4) The model number and description of each video lottery
terminal received;
(5) The expected date and time of video lottery terminal
arrival; and
(6) The expected date and time of video lottery terminal
installation, and if a video lottery terminal is not placed in
operation, the licensed racetrack must notify the commission of
the location where the terminal is stored.
(d) Any person transporting a video lottery terminal from
one location to another in this state, other than for repair orservicing purposes, shall notify the commission in writing prior
to the transportation of the terminal and provide the following
information on forms required by the commission:
(1) The full name, address and license number of the person
or entity transporting the video lottery terminal;
(2) The reason for transporting the video lottery terminal;
(3) The full name, address and license number of the person
or entity to whom the terminal is being sent and the destination
of the video lottery terminal if it is different from the
address;
(4) The serial and model number of the video lottery
terminal;
(5) The video lottery terminal license number, if affixed;
(6) The manufacturer of the video lottery terminal; and
(7) The expected date and time of video lottery terminal
installation or reinstallation.
(e) Any person shipping video lottery terminals to a
destination outside of this state shall, prior to the shipment,
provide the commission with the following information on forms
prescribed by the commission:
(1) The full name, address and license or permit number of
the person shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name and address of the person to whom the
video lottery terminals are being sent and the destination of the
video lottery terminals if different from the address;
(4) The serial number of each video lottery terminal being
shipped;
(5) The model number and description of the video lottery
terminal being shipped;
(6) The video lottery terminal control number, if affixed;
(7) The manufacturer of the video lottery terminal being
shipped; and
(8) The expected date and time of the shipment.
(f) Each video lottery terminal placed in operation in this
state must have a commission registration decal permanently
affixed, with a video lottery terminal registration control
number placed thereon. No person other than authorized
commission personnel shall affix or remove a registration control
number. The affixing of the commission decal on a video lottery
terminal evidences that the terminal has been registered,
inspected and approved for operation in this state. No terminal
may be transported out of this state until authorized commission
personnel have removed the commission registration control
number.
§29-22A-15. Hearing and appeal procedure; order refusing license
or permit or suspending or revoking same; petition for
hearing; petition requirements; cost of hearings; subpoenas
and subpoenas duces tecum; no stay of suspension or
revocation order; hearing date; place of hearing;
continuances; absence of petitioner; hearing; argument and
briefs; evidence admissible at hearing; record of
proceedings; commission's decision; appeal to circuit court.
(a) If the commission refuses to issue a license or permit,
or suspends or revokes a license or permit, it shall make and
enter an order to that effect including a statement of the
reasons for that action and shall, by certified mail, return
receipt requested, mail a copy of the order to the applicant, or
the license or permit holder, or serve the same in the manner
provided for the service of legal process.
(b) Any applicant or license or permit holder adversely
affected by such order has the right to a hearing thereon before
the commission or a person designated as hearing examiner, if a
petition in writing requesting a hearing is served upon the
commission within ten days following the receipt of the order by
such applicant, or license or permit holder.
(c) The petition for a hearing shall be in writing and shall
include an original and one copy. The petition must contain the
following:
(1) A clear and concise statement of each error which the
petitioner alleges to have been committed by the commission in
refusing to issue a license or permit, or suspending or revoking
a license or permit, with each assignment of error being shown in
separately numbered paragraphs;
(2) A clear and concise statement of fact upon which the
petitioner relies as sustaining each assignment of error;
(3) A prayer setting forth the relief sought;
(4) The signature of the petitioner;
(5) Verification by the petitioner.
(d) The person demanding a hearing shall give security for
the cost of the hearing in the amount of three hundred dollars in
the form of certified check, cashier's check or money order,
which shall accompany the petition demanding a hearing.
(e) In all hearings held under this article, oral and
documentary evidence may be required through the use of subpoenas
and subpoenas duces tecum. Subpoenas or subpoenas duces tecum
may be issued by either the commission or its duly appointed
hearing examiner and the following provisions shall govern and
control:
(1) Every subpoena or subpoena duces tecum must be served at
least five days before the return date thereof, either by
personal service made by any person eighteen years of age or
older, or by registered or certified mail, but a return
acknowledgement signed by the person to whom the subpoena or
subpoena duces tecum is directed is required to prove service by
registered or certified mail;
(2) All subpoenas and subpoenas duces tecum shall be issued
in the name of the commission. Service of subpoenas and
subpoenas duces tecum issued at the insistence of the commission
are the responsibility of the commission, but any party
requesting issuance of a subpoena or subpoena duces tecum is
responsible for service of any such subpoena. Any person who
serves a subpoena or subpoena duces tecum is entitled to the same
fee as sheriffs who serve witness subpoenas for the circuitcourts of this state and fees for the attendance and travel of
witnesses shall be the same as for witnesses before the circuit
courts of this state;
(3) All fees shall be paid by the commission if the subpoena
or subpoena duces tecum is issued, without the request of an
interested party, at the insistence of the commission;
(4) All fees related to any subpoenas or subpoena duces
tecum issued at the insistence of an interested party shall be
paid by the interested party;
(5) All requests by an interested party for a subpoena and
subpoena duces tecum shall be in writing and shall contain a
statement acknowledging that the requesting party agrees to pay
such fees;
(6) Any person receiving a subpoena or subpoena duces tecum
issued hereunder shall honor the same as though it were issued by
a circuit court of this state and shall appear as a witness or
produce such books, records or papers as are requested in
response to a subpoena or subpoena duces tecum. In case of
disobedience or neglect of any subpoena or subpoena duces tecum
served on any person or the refusal of any witness to testify to
any matter regarding which he or she may be lawfully
interrogated, the circuit court of the county in which the
hearing is being held, or the judge thereof in vacation, shall,
upon application by the commission, compel obedience by contempt
proceedings as in the case of disobedience of the requirements of
a subpoena or subpoena duces tecum issued from the circuit courtor a refusal to testify therein.
(f) The service of a petition for hearing upon the
commission shall not operate to suspend the execution of any
suspension or revocation of a video lottery license or permit
with respect to which a hearing is being demanded.
(g) The commission shall set a date for any hearing demanded
and notify the person demanding a hearing not later than seven
days before the hearing date of the date and time of the hearing,
which hearing shall be held within thirty days after receipt of
the petition.
(h) Hearings may not be delayed by a motion for continuance
made less than ten days before the date set for the hearing.
(i) The commission may designate a hearing examiner to
conduct any hearing.
(j) The petitioner may appear individually, or by legal
counsel.
(k) The petitioner, or his duly authorized representative,
may, with the approval of the commission, waive the right to a
hearing and agree to submit the case for decision upon the
petition and record, with or without a written brief. Waivers
and agreements must be in writing or upon the record.
(l) The petitioner shall be given an opportunity for
argument within the time limits fixed by the commission following
submission of evidence. The commission, upon request of the
petitioner, shall accept briefs in addition to or in lieu of
argument. Briefs must be filed within ten days after the hearingdate.
(m) The commission may admit any relevant evidence, except
that it shall observe the rules of privilege recognized by law.
A finding is to be supported by the kind of evidence commonly
relied upon by reasonably prudent men in the conduct of their
affairs, whether or not the evidence would be admissible before
a jury. The commission may exclude any evidence which is
irrelevant, unduly repetitious or lacking in substantial
probative effect.
(n) There shall be a record made of all hearings held
pursuant to this article.
(o) After the conclusion of the hearing and within ten days
of receipt of the transcript thereof and receipt of any briefs,
the person designated by the commission as hearing examiner shall
prepare a recommended decision, supported by findings of fact and
conclusions of law, affirming, modifying or vacating the earlier
order of the commission. Thereafter, the commission, within ten
days of receipt of the recommended decision, shall either accept
or reject the recommended decision, and if it accepts the
decision, it shall cause the director to sign and acknowledge the
recommended decision as its own, after having reviewed the
transcript and all exhibits attached and affixed thereto; and if
it shall reject the same, it shall within ten days of receipt of
the recommended decision prepare a decision setting forth its own
findings of fact and conclusions of law. In either event, the
decision shall be final unless vacated or modified upon judicialreview thereof. A copy of the decision shall be served upon each
party to the hearing and their attorney of record, if any, in
person or by registered or certified mail.
(p) An appeal by the applicant or license or permit holder
may be filed with the circuit court of Kanawha County, West
Virginia, or with a judge thereof in vacation, if filed no later
than thirty days after the date upon which the petitioner
receives notice of the final decision of the commission.
§29-22A-16. Severability.
If any provision of this article or the 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.
NOTE: The purpose of this bill is to authorize the West
Virginia Lottery Commission to operate video lottery games at
horse and dog racetracks licensed by the West Virginia Racing
Commission, to provide for local option elections on video
lottery at racetracks and to provide specific definitions and
standards governing the operation of such video lottery games.
This bill further provides that race tracks with a video
lottery license, if a horse track, shall race at least 223 days
a year and run at least 10 races a day, and, if a dog track,
shall race at least 311 days a year and run at least 15 races a
day. It also provides that all income derived from a video
lottery be divided as follows: 15% to the horsemen and dog and
kennel owners as increased purses; 5% to the municipality or
county where the machines are located; 50% to the owners of the
race tracks; and 30% to the State of West Virginia to be used for
teacher's and other state employees' pay raises. The bill
provides local option elections to allow residents of each county
where race tracks are located to vote their desirability, with a
requirement of 5% of the voters voting in the previous election
being able to petition for a local option election on the subjectof the use of video lottery at the race track. And, finally,
this bill limits to 300 the number of video lottery devices at
each racetrack.
This article is new; therefore, strike-throughs and
underscoring have been omitted.