Senate Bill No. 174
(By Senators Minard, Sharpe, Bowman and Ross)
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[Introduced January 21, 2000; referred to the Committee
on Government; and then to the Committee on Finance.]
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A BILL to amend and reenact section ten, article twenty-two,
chapter twenty-nine of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to licensed
lottery sales agent commissions; providing sales incentives
for lottery retail agents; and providing sliding scale
commissions related to total weekly lottery sales at each
separate licensed lottery location.
Be it enacted by the Legislature of West Virginia:
That section ten, article twenty-two, chapter twenty-nine of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-10. Licensed lottery sales agents; restrictions; annual
license and fee; factors; application; bond; age;
nonassignable license; organizations qualified;
commissions; display of license; geographic
distribution; monopoly prohibited; lottery
retailers; preprinted instant type lottery tickets;
fee; certificate of authority; security; bond.
(a) The commission shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code, for the licensing of lottery
sales agents for the sale and dispensing of lottery tickets,
materials and lottery games, and the operations of electronic
computer terminals therefor, subject to the following:
(1) The commission shall issue its annual license to the
lottery sales agents for each lottery outlet and for such fee as is
established by the commission to cover its costs thereof, but not
to exceed one thousand dollars. Application for licensing as a
lottery sales agent shall be on forms to be prescribed and
furnished by the director.
(2) No licensee may engage in business exclusively as a
lottery sales agent.
(3) The commission shall ensure geographic distribution of
lottery sales agents throughout the state.
(4) Before issuance of a license to an applicant, the
commission shall consider factors such as the financial
responsibility, security, background, accessibility of the place of
business or activity to the public, public convenience and the
volume of expected sales.
(5) No person under the age of twenty-one may be licensed as
an agent. No licensed agent may employ any person under the age of
eighteen for sales or dispensing of lottery tickets or materials or
operation of a lottery terminal.
(6) A license is valid only for the premises stated thereon.
(7) The director may issue a temporary license when determined
necessary.
(8) A license is not assignable or transferable.
(9) Before a license is issued, an agent shall be bonded for
an amount and in the form and manner to be determined by the
director, or shall provide such other security, in an amount, form
and manner determined by the director, as will ensure the
performance of the agent's duties and responsibilities as a
licensed lottery agent or the indemnification of the commission.
(10) The commission may issue licenses to any legitimate
business, organization, person or entity, including, but not
limited to, civic or fraternal organizations; parks and recreation
commissions or similar authorities; senior citizen centers,
state-owned stores, persons lawfully engaged in nongovernmental
business on state property, persons lawfully engaged in the sale of
alcoholic beverages; political subdivisions or their agencies or
departments, state agencies, commission-operated agencies; persons
licensed under the provisions of article twenty-three, chapter
nineteen of this code, and religious, charitable or seasonal
businesses.
(11) Licensed lottery sales agents shall receive the following
six and one quarter percent of gross sales as commission for the
performance of their duties at each separate licensed lottery
location: (i) six and one quarter percent of weekly gross sales of
two thousand dollars or less; (ii) seven percent of weekly gross
sales exceeding two thousand dollars, but totaling three thousand
dollars or less; (iii) seven and one half percent of weekly gross
sales exceeding three thousand dollars, but totaling four thousand
dollars or less; and (iv) eight percent of weekly gross sales
exceeding four thousand dollars: Provided, That a portion of the commission not to exceed one and one quarter percent of gross sales
may be paid from unclaimed prize moneys accumulated under section
sixteen of this article. In addition, the commission may
promulgate a bonus-incentive plan as additional compensation not
to exceed one percent of annual gross sales. The method and time
of payment shall be determined by the commission.
(12) Licensed lottery sales agents shall prominently display
the license on the premises where lottery sales are made.
(13) No person or entity or subsidiary, agent or subcontractor
thereof may receive or hold more than twenty-five percent of the
licenses to act as licensed lottery sales agent in any one county
or municipality nor more than five percent of the licenses issued
throughout this state: Provided, That the limitations of
twenty-five percent and five percent in this subdivision do not
apply if it is determined by the commission that there are not a
sufficient number of qualified applicants for licenses to comply
with these requirements.
(b) The commission shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code, specifying the terms and
conditions for contracting with lottery retailers for sale of preprinted instant type lottery tickets and may provide for the
dispensing of such tickets through machines and devices. Tickets
may be sold or dispensed in any public or private store, operation
or organization, without limitation. The commission may establish
an annual fee not to exceed fifty dollars for such persons, per
location or site, and shall issue a certificate of authority to act
as a lottery retailer to such persons. The commission shall
establish procedures to ensure the security, honesty and integrity
of the lottery and distribution system. The commission shall
establish the method of payment, commission structure, methods of
payment of winners, including payment in merchandise and tickets,
and may require prepayment by lottery retailers, require bond or
security for payment and require deposit of receipts in accounts
established therefor. Retailers shall prominently display the
certificate of authority issued by the commission on the premises
where lottery sales are made.
NOTE: The purpose of this bill is to provide incentives for
licensed retail lottery agents to increase sales of lottery
products by creating a sliding scale of commissions related to
increased sales at each lottery location.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.