ENGROSSED

COMMITTEE SUBSTITUTE

FOR

H. B. 2205

(By Mr. Speaker, Mr. Kiss, and Delegate Trump)

[By Request of the Executive]

)

(Originating in the Committee on Finance)

[April 3, 2001]



A BILL to amend and reenact section five, article two, chapter fifteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact sections two, three, eight and eight-a, article four, chapter eighteen- a of said code; and to amend chapter twenty-nine of said code by adding thereto a new article, designated article twenty-two-b, all relating generally to providing salary increases and associated employee benefits for various employees of the state and the counties, including but not limited to salary increases for teachers, members of the state police, correctional officers and other state employees, effective January 1, 2002, and providing a source of funding therefor; creating the source of funding therefor by allowing video lottery games to be played at restricted access adult-only facilities licensed by alcohol beverage control commissioner and by lottery commission under regulation of lottery commission; providing short title and statements of legislative purposes, findings and intents; providing certain hardware and software requirements; providing for video lottery terminals to be connected to lottery commission's central computer system; limiting aggregate number of video lottery terminals that may be located at all licensed restricted access adult-only facilities; limiting number of video lottery terminals that may be owned or leased by a licensed operator; limiting the number of video lottery terminals located at any single licensed restricted access adult-only facility; providing for licensure of manufacturers and operators of video lottery terminals, location managers of restricted access adult-only facilities and service technicians; providing for allocation of video lottery terminal among operators to be by competitive bid; providing for distribution of net terminal income; defining certain terms; specifying powers and duties of lottery commission; specifying conditions for licensure and duties of licensees; providing administrative procedures; providing administrative and judicial remedies; providing administrative and judicial due process; providing certain civil money penalties; providing criminal penalties for certain violations; declaring gray gambling machines contraband after specified date; providing for forfeiture and disposition of contraband; providing for distribution of proceeds of forfeiture; defining relationship between this new article and existing state and local laws, and providing for timing of implementation.

Be it enacted by the Legislature of West Virginia:
That section five, article two, chapter fifteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that sections two, two-a, three, eight and eight-a, article four, chapter eighteen-a of said code be amended and reenacted; and that chapter twenty-nine of said code be amended and reenacted by adding thereto a new article, designated article twenty-two-b, all to read as follows:
CHAPTER 15. PUBLIC SAFETY.

ARTICLE 2. WEST VIRGINIA STATE POLICE.
§15-2-5. Career progression system; salaries; exclusion from wage and hour law, with supplemental payment; bond; leave time for members called to duty in guard or reserves.

(a) The superintendent shall establish within the West Virginia state police a system to provide for: The promotion of members to the supervisory ranks of sergeant, first sergeant, second lieutenant and first lieutenant; the classification of nonsupervisory members within the field operations force to the ranks of trooper, senior trooper, trooper first class or corporal; the classification of members assigned to the forensic laboratory as criminalist I-VII; and the temporary reclassification of members assigned to administrative duties as administrative support specialist I-VIII.
(b) The superintendent is authorized to propose legislative rules for promulgation in accordance with article three [§§ 29A-3-1 et seq.], chapter twenty-nine-a of this code for the purpose of ensuring consistency, predictability and independent review of any system developed under the provisions of this section.
(c) The superintendent shall provide to each member a written manual governing any system established under the provisions of this section and specific procedures shall be identified for the evaluation and testing of members for promotion or reclassification and the subsequent placement of any members on a promotional eligibility or reclassification recommendation list.
(d) Beginning on the first day of July, two thousand one, and continuing thereafter, members shall receive annual salaries as follows:
ANNUAL SALARY SCHEDULE (BASE PAY)

SUPERVISORY AND NONSUPERVISORY RANKS

Cadet During Training .................................. $1,747 Mo. $20,964
Cadet Trooper After Training ....................... 2,150 Mo. 25,800
Trooper Second Year ........................................................ 26,256
Trooper Third Year ........................................................... 26,628
Trooper Fourth & Fifth Year ............................................. 26,928
Senior Trooper ................................................................... 29,016
Trooper First Class ............................................................ 31,104
Corporal ............................................................................. 33,192
Sergeant ............................................................................. 37,368
First Sergeant ..................................................................... 39,456
Second Lieutenant .............................................................. 41,544
First Lieutenant .................................................................. 43,632
Captain ............................................................................... 45,720
Major .................................................................................. 47,808
Lieutenant Colonel ............................................................. 49,896
Cadet During Training ................................. $2,039 Mo. $24,476
Cadet Trooper After Training ....................... 2,442 Mo. 29,312
Trooper Second Year ......................................................... 29,768
Trooper Third Year ............................................................ 30,140
Trooper Fourth & Fifth Year .............................................. 30,440
Senior Trooper .................................................................... 32,528
Trooper First Class .............................................................. 34,616
Corporal ............................................................................... 36,704
Sergeant ............................................................................... 40,880
First Sergeant ...................................................................... 42,968
Second Lieutenant ................................................................ 45,056
First Lieutenant .................................................................... 47,144
Captain ................................................................................. 49,232
Major ................................................................................... 51,320
Lieutenant Colonel .............................................................. 53,408
ANNUAL SALARY SCHEDULE (BASE PAY)

ADMINISTRATION

SUPPORT SPECIALIST CLASSIFICATION

I ......................................................................................... 26,928
II ........................................................................................ 29,016
III ....................................................................................... 31,104
IV ....................................................................................... 33,192
V ........................................................................................ 37,368
VI ....................................................................................... 39,456
VII ...................................................................................... 41,544
VIII ..................................................................................... 43,632
I ........................................................................................... 30,440
II .......................................................................................... 32,528
III ......................................................................................... 34,616
IV ........................................................................................ 36,704
V ......................................................................................... 40,880
VI ........................................................................................ 42,968
VII ....................................................................................... 45,056
VIII ...................................................................................... 47,144
ANNUAL SALARY SCHEDULE (BASE PAY)

CRIMINALIST CLASSIFICATION

I ........................................................................................ 26,928
II ....................................................................................... 29,016
III ...................................................................................... 31,104
IV ...................................................................................... 33,192
V ........................................................................................ 37,368
VI ....................................................................................... 39,456
VII ...................................................................................... 41,544
I ........................................................................................... 30,440
II .......................................................................................... 32,528
III ........................................................................................ 34,616
IV ........................................................................................ 36,704
V ......................................................................................... 40,880
VI ........................................................................................ 42,968
VII ....................................................................................... 45,056
Each member of the West Virginia state police whose salary is fixed and specified in this annual salary schedule is entitled to the length of service increases set forth in subsection (f) of this section and supplemental pay as provided in subsection (g) of this section.
(e) Each member of the West Virginia state police whose salary is fixed and specified pursuant to this section shall receive, and is entitled to, an increase in salary over that set forth in subsection (d) of this section, for grade in rank, based on length of service, including that service served before and after the effective date of this section with the West Virginia state police as follows: At the end of five years of service with the West Virginia state police, the member shall receive a salary increase of three hundred dollars to be effective during his or her next three years of service and a like increase at three-year intervals thereafter, with the increases to be cumulative: Provided, that for length of service periods reached on and after July 1, 2001, the salary increase provided for herein shall be at a rate of one thousand two hundred dollars.
(f) In applying the salary schedules set forth in this section where salary increases are provided for length of service, members of the West Virginia state police in service at the time the schedules become effective shall be given credit for prior service and shall be paid such salaries as the same length of service entitles them to receive under the provisions of this section.
(g) The Legislature finds and declares that because of the unique duties of members of the West Virginia state police, it is not appropriate to apply the provisions of state wage and hour laws to them. Accordingly, members of the West Virginia state police are excluded from the provisions of state wage and hour law. This express exclusion shall not be construed as any indication that the members were or were not covered by the wage and hour law prior to this exclusion.
In lieu of any overtime pay they might otherwise have received under the wage and hour law, and in addition to their salaries and increases for length of service, members who have completed basic training and who are exempt from federal Fair Labor Standards Act guidelines may receive supplemental pay as provided in this section.
The superintendent shall, within thirty days after the effective date of this section, propose a legislative rule for promulgation in accordance with article three [§§ 29A-3-1 et seq.], chapter twenty-nine-a of this code, to establish the number of hours per month which constitute the standard work month for the members of the West Virginia state police. The rule shall further establish, on a graduated hourly basis, the criteria for receipt of a portion or all of supplemental payment when hours are worked in excess of the standard work month. The superintendent shall certify monthly to the West Virginia state police's payroll officer the names of those members who have worked in excess of the standard work month and the amount of their entitlement to supplemental payment. The supplemental payment may not exceed two hundred thirty-six dollars monthly. The superintendent and civilian employees of the West Virginia state police are not eligible for any supplemental payments.
(h) Each member of the West Virginia state police, except the superintendent and civilian employees, shall execute, before entering upon the discharge of his or her duties, a bond with security in the sum of five thousand dollars payable to the state of West Virginia, conditioned upon the faithful performance of his or her duties, and the bond shall be approved as to form by the attorney general and as to sufficiency by the governor.
(i) Any member of the West Virginia state police who is called to perform active duty for training or inactive duty training in the national guard or any reserve component of the armed forces of the United States annually shall be granted, upon request, leave time not to exceed thirty calendar days for the purpose of performing the active duty for training or inactive duty training and the time granted may not be deducted from any leave accumulated as a member of the West Virginia state police.
(j) Beginning on the first day of July, one thousand nine hundred ninety-nine, and continuing thereafter, members shall receive annual salaries as follows:
AMENDED ANNUAL SALARY SCHEDULE

(BASE PAY)

SUPERVISORY AND NONSUPERVISORY RANKS

Cadet During Training ..................... $1,913 Mo. $22,964
Cadet Trooper After Training ............ 2,316 Mo. 27,800
Trooper Second Year ............................................ 28,256
Trooper Third Year ............................................... 28,628
Trooper Fourth & Fifth Year ................................ 28,928
Senior Trooper ...................................................... 31,016
Trooper First Class ................................................ 33,104
Corporal ................................................................. 35,192
Sergeant ............................................................ 39,368
First Sergeant .................................................... 41,456
Second Lieutenant ............................................ 43,544
First Lieutenant ................................................ 45,632
Captain ............................................................. 47,720
Major ............................................................... 49,808
Lieutenant Colonel .......................................... 51,896
AMENDED ANNUAL SALARY SCHEDULE

(BASE PAY) ADMINISTRATION

SUPPORT SPECIALIST CLASSIFICATION

I ............ 28,928
II ............ 31,016
III ............ 33,104
IV ............ 35,192
V ............ 39,368
VI ............ 41,456
VII ............ 43,544
VIII ............ 45,632
AMENDED ANNUAL SALARY SCHEDULE

(BASE PAY)

CRIMINALIST CLASSIFICATION

I ............ 28,928
II ............ 31,016
III ............ 33,104
IV ............ 35,192
V ............ 39,368
VI ............ 41,456
VII ............ 43,544
Each member of the West Virginia state police whose salary is fixed and specified in the amended annual salary schedules is entitled to the length of service increases set forth in subsection (f) of this section and supplemental pay as provided in subsection (g) of this section.
(k) Beginning on the first day of July, two thousand, and continuing thereafter, members shall receive annual salaries as follows:
AMENDED ANNUAL SALARY SCHEDULE

(BASE PAY)

SUPERVISORY AND NONSUPERVISORY RANKS

Cadet During Training ...................................$1,976 Mo. $23,720
Cadet Trooper After Training ........................ 2,379 Mo. 28,556
Trooper Second Year ........................................................ 29,012
Trooper Third Year ........................................................... 29,384
Trooper Fourth & Fifth Year ............................................ 29,684
Senior Trooper .................................................................. 31,772
Trooper First Class ........................................................... 33,860
Corporal ............................................................................ 35,948
Sergeant ............................................................................ 40,124
First Sergeant .................................................................... 42,212
Second Lieutenant ............................................................ 44,300
First Lieutenant ................................................................ 46,388
Captain ............................................................................. 48,476
Major ................................................................................ 50,564
Lieutenant Colonel ........................................................... 52,652
AMENDED ANNUAL SALARY SCHEDULE (BASE PAY)

ADMINISTRATION

SUPPORT SPECIALIST CLASSIFICATION

I ............................................................... 29,684
II .............................................................. 31,772
III ............................................................. 33,860
IV .............................................................. 35,948
V ............................................................... 40,124
VI .............................................................. 42,212
VII ............................................................. 44,300
VIII ............................................................ 46,388


AMENDED ANNUAL SALARY SCHEDULE (BASE PAY)

CRIMINALIST CLASSIFICATION

I ............................................................... 29,684
II .............................................................. 31,772
III ............................................................. 33,860
IV .............................................................. 35,948
V ............................................................... 40,124
VI .............................................................. 42,212
VII ............................................................. 44,300
Each member of the West Virginia state police whose salary is fixed and specified in the amended annual salary schedules is entitled to the length of service increases set forth in subsection (f) of this section and supplemental pay as provided in subsection (g) of this section.
CHAPTER 18A. SCHOOL PERSONNEL.

ARTICLE 4. SALARIES, WAGES AND OTHER BENEFITS.

§18A-4-2. State minimum salaries for teachers.
(a) Each teacher shall receive the amount prescribed in the "state minimum salary schedule I" as set forth in this section, specific additional amounts prescribed in this section or article, and any county supplement in effect in a county pursuant to section five-a of this article during the contract year: Provided, That beginning on the first day of the second half of the teacher's employment term in the school year two thousand one-two thousand two, and thereafter, each teacher shall receive the amount prescribed in "state minimum salary schedule II" as set forth in this section, specific additional amounts prescribed in this section or article, and any county supplement in effect in a county pursuant to section five-a of this article during the contract year.
STATE MINIMUM SALARY SCHEDULE I

(1)(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)

Years
4th
3rd
2nd
A.B.
M.A.
M.A.
M.A.
Doc-

Exp.
Class
Class
Class
A.B.
+15
M.A.
+15
+30
+45
trate

0 18,572 19,209 19,464 20,674 21,409 23,117 23,852 24,587 25,322 26,322
1 18,853 19,490 19,745 21,139 21,874 23,582 24,317 25,052 25,787 26,787
2 19,134 19,772 20,027 21,604 22,339 24,047 24,782 25,517 26,252 27,252
3 19,416 20,053 20,308 22,069 22,804 24,512 25,247 25,982 26,717 27,717
4 19,933 20,570 20,826 22,770 23,505 25,213 25,948 26,683 27,418 28,418
5 20,214 20,852 21,107 23,235 23,970 25,678 26,413 27,148 27,883 28,883
6 20,496 21,133 21,388 23,700 24,435 26,143 26,878 27,613 28,348 29,348
7 20,496 21,414 21,670 24,165 24,900 26,608 27,343 28,078 28,813 29,813
8 20,496 21,696 21,951 24,630 25,365 27,073 27,808 28,543 29,278 30,278
9 20,496   22,232 25,095 25,830 27,538 28,273 29,008 29,743 30,743
10 20,496   22,513 25,561 26,296 28,004 28,739 29,474 30,209 31,209
11 20,496     26,026 26,761 28,469 29,204 29,939 30,674 31,674
12 20,496     26,491 27,226 28,934 29,669 30,404 31,139 32,139
13 20,496     26,956 27,691 29,399 30,134 30,869 31,604 32,604
14 20,496         29,864 30,599 31,334 32,069 33,069
15 20,496         30,329 31,064 31,799 32,534 33,534
16 20,496         30,794 31,529 32,264 32,999 33,999
17 20,496             32,729 33,464 34,464
18 20,496             33,194 33,929 34,929
19 20,496             33,659 34,394 35,394
Subject to a recommendation by the governor for a pay raise through the delivery of an executive message to the Legislature and an appropriation by the Legislature for a pay raise, each teacher shall receive, effective the first day of July, one thousand nine hundred ninety-nine, and thereafter, the amount prescribed in "state minimum salary schedule II" as set forth in this section or article, and any county supplement in effect in a county pursuant to section five-a of this article during the contract year.
STATE MINIMUM SALARY SCHEDULE II

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)

Years
4th3rd
2nd
A.B.
M.A.
M.A.
M.A.
Doc-

Exp.Class
Class
Class
A.B.
+15
M.A.
+15
+30
+45
trate

0 19,328 19,965 20,220 21,430 22,165 23,873 24,608 25,343 26,078 27,078
1 19,609 20,246 20,501 21,895 22,630 24,338 25,073 25,808 26,543 27,543
2 19,890 20,528 20,783 22,360 23,095 24,803 25,538 26,273 27,008 28,008
3 20,172 20,809 21,064 22,825 23,560 25,268 26,003 26,738 27,473 28,473
4 20,689 21,326 21,582 23,526 24,261 25,969 26,704 27,439 28,174 29,174
5 20,970 21,608 21,863 23,991 24,726 26,434 27,169 27,904 28,639 29,639
6 21,252 21,889 22,144 24,456 25,191 26,899 27,634 28,369 29,104 30,104
7 21,252 22,170 22,426 24,921 25,656 27,364 28,099 28,834 29,569 30,569
8 21,252 22,452 22,707 25,386 26,121 27,829 28,564 29,299 30,034 31,034
9 21,252   22,988 25,851 26,586 28,294 29,029 29,764 30,499 31,499
10 21,252   23,269 26,317 27,052 28,760 29,495 30,230 30,965 31,965
11 21,252     26,782 27,517 29,225 29,960 30,695 31,430 32,430
12 21,252     27,247 27,982 29,690 30,425 31,160 31,895 32,895
13 21,252     27,712 28,447 30,155 30,890 31,625 32,360 33,360
14 21,252         30,620 31,355 32,090 32,825 33,825
15 21,252         31,085 31,820 32,555 33,290 34,290
16 21,252         31,550 32,285 33,020 33,755 34,755
17 21,252             33,485 34,220 35,220
18 21,252             33,950 34,685 35,685
19 21,252             34,415 35,150 36,150
If "state minimum salary schedule II" becomes effective on the first day of July, one thousand nine hundred ninety-nine, and the governor recommends a pay raise through the delivery of an executive message to the Legislature and the Legislature appropriates money for a pay raise, each teacher shall receive, effective the first day of July, two thousand, and thereafter, the amount prescribed in "state minimum salary schedule III" as set forth in this section or article, and any county supplement in effect in a county pursuant to section five-a of this article during the contract year.
STATE MINIMUM SALARY SCHEDULE III I

  1. (2)
    (3)
    (4)
    (5)
    (6)
    (7)
    (8)
    (9)
    (10)
    (11)

Years
4th
3rd
2nd
A.B.
M.A.
M.A.
M.A.
Doc-

Exp.
Class
Class
Class
A.B.
+15
M.A.
+15
+30
+45
trate
0 20,084 20,721 20,976 22,186 22,921 24,629 25,364 26,099 26,834 27,834
1 20,365 21,002 21,257 22,651 23,386 25,094 25,829 26,564 27,299 28,299
2 20,646 21,284 21,539 23,116 23,851 25,559 26,294 27,029 27,764 28,764
3 20,928 21,565 21,820 23,581 24,316 26,024 26,759 27,494 28,229 29,229
4 21,445 22,082 22,338 24,282 25,017 26,725 27,460 28,195 28,930 29,930
5 21,726 22,364 22,619 24,747 25,482 27,190 27,925 28,660 29,395 30,395
6 22,008 22,645 22,900 25,212 25,947 27,655 28,390 29,125 29,860 30,860
7 22,008 22,926 23,182 25,677 26,412 28,120 28,855 29,590 30,325 31,325
8 22,008 23,208 23,463 26,142 26,877 28,585 29,320 30,055 30,790 31,790
9 22,008   23,744 26,607 27,342 29,050 29,785 30,520 31,255 32,255
10 22,008   24,025 27,073 27,808 29,516 30,251 30,986 31,721 32,721
11 22,008     27,538 28,273 29,981 30,716 31,451 32,186 33,186
12 22,008     28,003 28,738 30,446 31,181 31,916 32,651 33,651
13 22,008     28,468 29,203 30,911 31,646 32,381 33,116 34,116
14 22,008         31,376 32,111 32,846 33,581 34,581
15 22,008         31,841 32,576 33,311 34,046 35,046
16 22,008         32,306 33,041 33,776 34,511 35,511
17 22,008             34,241 34,976 35,976
18 22,008             34,706 35,441 36,441
19 22,008             35,171 35,906 36,906
STATE MINIMUM SALARY SCHEDULE II

(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)
Years4th3rd2ndA.B. M.A.M.A.M.A. Doc-
Exp.ClassClassClassA.B.+15M.A.+15+30+45trate
0 21,084 21,721 21,976 23,186 23,921 25,629 26,364 27,099 27,834 28,834
1 21,365 22,002 22,257 23,651 24,386 26,094 26,829 27,564 28,299 29,299
2 21,646 22,284 22,539 24,116 24,851 26,559 27,294 28,029 28,764 29,764
3 21,928 22,565 22,820 24,581 25,316 27,024 27,759 28,494 29,229 30,229
4 22,445 23,082 23,338 25,282 26,017 27,725 28,460 29,195 29,930 30,930
5 22,726 23,364 23,619 25,747 26,482 28,190 28,925 29,660 30,395 31,395
6 23,008 23,645 23,900 26,212 26,947 28,655 29,390 30,125 30,860 31,860
7 22,008 23,926 24,182 26,677 27,412 29,120 29,855 30,590 31,325 32,325
8 22,008 24,208 24,463 27,142 27,877 29,585 30,320 31,055 31,790 32,790
9 22,008   24,744 27,607 28,342 30,050 30,785 31,520 32,255 33,255
10 22,008   25,025 28,073 28,808 30,516 31,251 31,986 32,721 33,721
11 22,008     28,538 29,273 30,981 31,716 32,451 33,186 34,186
12 22,008     29,003 29,738 31,446 32,181 32,916 33,651 34,651
13 22,008     29,468 30,203 31,911 32,646 33,381 34,116 35,116
14 22,008         32,376 33,111 33,846 34,581 35,581
15 22,008         32,841 33,576 34,311 35,046 36,046
16 22,008         33,306 34,041 34,776 35,511 36,511
17 22,008             35,241 35,976 36,976
18 22,008             35,706 36,441 37,441
19 22,008             36,171 36,906 37,906
(b) Six hundred dollars shall be paid annually to each classroom teacher who has at least twenty years of teaching experience. The payments: (i) Shall be in addition to any amounts prescribed in the applicable state minimum salary schedule; (ii) shall be paid in equal monthly installments; and (iii) shall be considered a part of the state minimum salaries for teachers.
(c) In addition to any amounts prescribed in the applicable state minimum salary schedule, each professional educator shall be paid annually the following increment amounts in accordance with their years of experience. The payments shall be paid in equal monthly installments and shall be considered a part of the state minimum salaries for teachers.
Years of Experience
Increment

23
200

26
200

29
200

32
200

35
200

§18A-4-2a.  State minimum salary bonus for classroom teachers with national board certification.
(a) The Legislature hereby finds and declares that the rigorous standards and processes for certification by the national board for professional teaching standards (NBPTS) helps to promote the quality of teaching and learning.  Therefore, classroom teachers in the public schools of West Virginia should be encouraged to achieve national board certification through a reimbursement of expenses and an additional salary bonus which reflects their additional certification, to be paid in accordance with subsection (b) of this section.
(b) Beginning on the first day of July, one thousand nine hundred ninety-eight, and subject to legislative appropriation, one thousand Two thousand five hundred dollars shall be paid annually at the conclusion of the first semester to each classroom teacher who holds a valid certificate issued by the national board of professional teaching standards for the life of the certification, but in no event more than ten years for any one certification. The payments: (i) Shall be in addition to any amounts prescribed in the applicable state minimum salary schedule; (ii) shall be paid in equal monthly installments; and (iii) shall be considered a part of the state minimum salaries for teachers.
(c) Subject to legislative appropriation, one-half the certification fee one thousand dollars shall be paid for reimbursement once to each teacher who enrolls in the program for the national board for professional teaching standards certification and one-half the certification fee one thousand dollars shall be paid for reimbursement once to each teacher who completes the national board for professional teaching standards certification.  Teachers who achieve national board for professional teaching standards certification may be reimbursed a maximum of six hundred dollars for expenses actually incurred while obtaining the national board for professional teaching standards certification.
(d) The state board shall limit the number of teachers who receive the initial reimbursements to one two hundred teachers annually.  The state board shall establish selection criteria for the one two hundred teachers by the legislative rule required pursuant to subsection (g) of this section.
(e) Funding for reimbursement of the certification fee and expenses actually incurred while obtaining the national board for professional teaching standards certifications shall be administered by the state department of education from an appropriation established for that purpose by the Legislature.  If funds appropriated by the Legislature to accomplish the purposes of this section subsection are insufficient, the state department shall prorate the reimbursements for expenses and salary bonuses and shall request of the Legislature, at its next regular session, funds sufficient to accomplish the purposes of this section subsection, including needed retroactive payments.
(f) Nothing is this section shall be construed to require any level of appropriation by the Legislature nor to create any entitlement for payments pursuant to the provisions of this section.
(g) (f) The state board shall promulgate legislative rules pursuant to article three-b, chapter twenty-nine-a of this code to implement the provisions of this section.
 §18A-4-3. State minimum annual salary increments for principals
and assistant principals.

In addition to any salary increments for principals and assistant principals, in effect on the first day of January, one thousand nine hundred ninety-six, and paid from local funds, and in addition to the county schedule in effect for teachers, the county board shall pay each principal, a principal's salary increment and each assistant principal an assistant principal's salary increment as prescribed by this section commencing on the first day of July, one thousand nine hundred ninety-six, from state funds appropriated for the salary increments.
State funds for this purpose shall be paid within the West Virginia public school support plan in accordance with article nine-a, chapter eighteen of this code.
The salary increment in this section for each principal shall be determined by multiplying the basic salary for teachers in accordance with the classification of certification and of training of the principal as prescribed in this article, by the appropriate percentage rate prescribed in this section according to the number of teachers supervised.
STATE MINIMUM SALARY INCREMENT

RATES FOR PRINCIPALS

No. of Teachers
SupervisedRates
1-76.0% 9.0%
8-146.5% 9.5%
15-247.0% 10.0%
25-387.5% 10.5%
39-578.0% 11.0%
58 and up8.5% 11.5%
The salary increment in this section for each assistant principal shall be determined in the same manner as that for principals, utilizing the number of teachers supervised by the principal under whose direction the assistant principal works, except that the percentage rate shall be fifty percent of the rate prescribed for the principal.
Salaries for employment beyond the minimum employment term shall be at the same daily rate as the salaries for the minimum employment terms.
For the purpose of determining the number of teachers supervised by a principal, the county board shall use data for the second school month of the prior school term and the number of teachers shall be interpreted to mean the total number of professional educators assigned to each school on a full-time equivalency basis: Provided, That if there is a change in circumstances because of consolidation or catastrophe, the county board shall determine what is a reasonable number of supervised teachers in order to establish the appropriate increment percentage rate.
No county may reduce local funds allocated for salary increments for principals and assistant principals in effect on the first day of January, one thousand nine hundred ninety-six, and used in supplementing the state minimum salaries as provided for in this article, unless forced to do so by defeat of a special levy, or a loss in assessed values or events over which it has no control and for which the county board has received approval from the state board prior to making the reduction.
Nothing in this section prevents a county board from providing, in a uniform manner, salary increments greater than those required by this section.
§18A-4-8. Employment term and class titles of service personnel; definitions.
(a) The purpose of this section is to establish an employment term and class titles for service personnel. The employment term for service personnel may be no less than ten months. A month is defined as twenty employment days: Provided, That the county board may contract with all or part of these service personnel for a longer term. The beginning and closing dates of the ten-month employment term may not exceed forty-three weeks.
(b) Service personnel employed on a yearly or twelve-month basis may be employed by calendar months. Whenever there is a change in job assignment during the school year, the minimum pay scale and any county supplement are applicable.
(c) Service personnel employed in the same classification for more than the two hundred day minimum employment term shall be paid for additional employment at a daily rate of not less than the daily rate paid for the two hundred day minimum employment term.
(d) No service employee, without his or her agreement, may be required to report for work more than five days per week and no part of any working day may be accumulated by the employer for future work assignments, unless the employee agrees thereto.
(e) If an employee whose regular work week is scheduled from Monday through Friday agrees to perform any work assignments on a Saturday or Sunday, the employee shall be paid for at least one-half day of work for each day he or she reports for work, and if the employee works more than three and one-half hours on any Saturday or Sunday, he or she shall be paid for at least a full day of work for each day.
(f) Custodians, aides, maintenance, office and school lunch employees required to work a daily work schedule that is interrupted, that is, who do not work a continuous period in one day, shall be paid additional compensation equal to at least one eighth of their total salary as provided by their state minimum salary and any county pay supplement, and payable entirely from county funds: Provided, That when engaged in duties of transporting students exclusively, aides shall not be regarded as working an interrupted schedule. Maintenance personnel are defined as personnel who hold a classification title other than in a custodial, aide, school lunch, office or transportation category as provided in section one, article one of this chapter.
(g) Upon the change in classification or upon meeting the requirements of an advanced classification of or by any employee, the employee's salary shall be made to comply with the requirements of this article, and to any county salary schedule in excess of the minimum requirements of this article, based upon the employee's advanced classification and allowable years of employment.
(h) An employee's contract as provided in section five, article two of this chapter shall state the appropriate monthly salary the employee is to be paid, based on the class title as provided in this article and any county salary schedule in excess of the minimum requirements of this article.
(i) The column heads of the state minimum pay scale and class titles, set forth in section eight-a of this article, are defined as follows:
(1) "Pay grade" means the monthly salary applicable to class titles of service personnel;
(2) "Years of employment" means the number of years which an employee classified as service personnel has been employed by a board in any position prior to or subsequent to the effective date of this section and including service in the armed forces of the United States, if the employee were employed at the time of his or her induction. For the purpose of section eight-a of this article, years of employment shall be limited to the number of years shown and allowed under the state minimum pay scale as set forth in section eight-a of this article;
(3) "Class title" means the name of the position or job held by service personnel;
(4) "Accountant I" means personnel employed to maintain payroll records and reports and perform one or more operations relating to a phase of the total payroll;
(5) "Accountant II" means personnel employed to maintain accounting records and to be responsible for the accounting process associated with billing, budgets, purchasing and related operations;
(6) "Accountant III" means personnel who are employed in the county board office to manage and supervise accounts payable and/or payroll procedures;
(7) "Accounts payable supervisor" means personnel who are employed in the county board office who have primary responsibility for the accounts payable function, which may include the supervision of other personnel, and who have either completed twelve college hours of accounting courses from an accredited institution of higher education or have at least eight years of experience performing progressively difficult accounting tasks.
(7) (8) "Aide I" means those personnel selected and trained for teacher-aide classifications such as monitor aide, clerical aide, classroom aide or general aide;
(8) (9) "Aide II" means those personnel referred to in the "Aide I" classification who have completed a training program approved by the state board, or who hold a high school diploma or have received a general educational development certificate. Only personnel classified in an Aide II class title may be employed as an aide in any special education program;
(9) (10) "Aide III" means those personnel referred to in the "Aide I" classification who hold a high school diploma or a general educational development certificate and have completed six semester hours of college credit at an institution of higher education or are employed as an aide in a special education program and have one year's experience as an aide in special education;
(10) (11) "Aide IV" means personnel referred to in the "Aide I" classification who hold a high school diploma or a general educational development certificate and who have completed eighteen hours of state board-approved college credit at a regionally accredited institution of higher education, or who have completed fifteen hours of state board-approved college credit at a regionally accredited institution of higher education and successfully completed an in-service training program determined by the state board to be the equivalent of three hours of college credit;
(11) (12) "Audiovisual technician" means personnel employed to perform minor maintenance on audiovisual equipment, films, supplies and the filling of requests for equipment;
(12) (13) "Auditor" means personnel employed to examine and verify accounts of individual schools and to assist schools and school personnel in maintaining complete and accurate records of their accounts;
(13) (14) "Autism mentor" means personnel who work with autistic students and who meet standards and experience to be determined by the state board: Provided, That if any employee has held or holds an aide title and becomes employed as an autism mentor, the employee shall hold a multiclassification status that includes aide and autism mentor titles, in accordance with section eight-b of this article;
(14) (15) "Braille or sign language specialist" means personnel employed to provide braille and/or sign language assistance to students: Provided, That if any employee has held or holds an aide title and becomes employed as a braille or sign language specialist, the employee shall hold a multiclassification status that includes aide and braille or sign language specialist title, in accordance with section eight-b of this article;
(15) (16) "Bus operator" means personnel employed to operate school buses and other school transportation vehicles as provided by the state board;
(16) (17) "Buyer" means personnel employed to review and write specifications, negotiate purchase bids and recommend purchase agreements for materials and services that meet predetermined specifications at the lowest available costs;
(17) (18) "Cabinetmaker" means personnel employed to construct cabinets, tables, bookcases and other furniture;
(18) (19) "Cafeteria manager" means personnel employed to direct the operation of a food services program in a school, including assigning duties to employees, approving requisitions for supplies and repairs, keeping inventories, inspecting areas to maintain high standards of sanitation, preparing financial reports and keeping records pertinent to food services of a school;
(19) (20) "Carpenter I" means personnel classified as a carpenter's helper;
(20) (21) "Carpenter II" means personnel classified as a journeyman carpenter;
(21) (22) "Chief mechanic" means personnel employed to be responsible for directing activities which ensure that student transportation or other board-owned vehicles are properly and safely maintained;
(22) (23) "Clerk I" means personnel employed to perform clerical tasks;
(23) (24) "Clerk II" means personnel employed to perform general clerical tasks, prepare reports and tabulations and operate office machines;
(24) (25) "Computer operator" means qualified personnel employed to operate computers;
(25) (26) "Cook I" means personnel employed as a cook's helper;
(26) (27) "Cook II" means personnel employed to interpret menus, to prepare and serve meals in a food service program of a school and shall include personnel who have been employed as a "Cook I" for a period of four years, if the personnel have not been elevated to this classification within that period of time;
(27) (28) "Cook III" means personnel employed to prepare and serve meals, make reports, prepare requisitions for supplies, order equipment and repairs for a food service program of a school system;
(28) (29) "Crew leader" means personnel employed to organize the work for a crew of maintenance employees to carry out assigned projects;
(29) (30) "Custodian I" means personnel employed to keep buildings clean and free of refuse;
(30) (31) "Custodian II" means personnel employed as a watchman or groundsman;
(31) (32) "Custodian III" means personnel employed to keep buildings clean and free of refuse, to operate the heating or cooling systems and to make minor repairs;
(32) (33) "Custodian IV" means personnel employed as head custodians. In addition to providing services as defined in "custodian III," their duties may include supervising other custodian personnel;
(33) (34) "Director or coordinator of services" means personnel who are assigned to direct a department or division. Nothing in this subdivision may prohibit professional personnel or professional educators as defined in section one, article one of this chapter, from holding this class title, but professional personnel may not be defined or classified as service personnel unless the professional personnel held a service personnel title under this section prior to holding class title of "director or coordinator of services." Directors or coordinators of service positions shall be classified as either a professional personnel or service personnel position for state aid formula funding purposes and funding for directors or coordinators of service positions shall be based upon the employment status of the director or coordinator either as a professional personnel or service personnel;
(34) (35) "Draftsman" means personnel employed to plan, design and produce detailed architectural/engineering drawings;
(35) (36) "Electrician I" means personnel employed as an apprentice electrician helper or who holds an electrician helper license issued by the state fire marshal;
(36) (37) "Electrician II" means personnel employed as an electrician journeyman or who holds a journeyman electrician license issued by the state fire marshal;
(37) (38) "Electronic technician I" means personnel employed at the apprentice level to repair and maintain electronic equipment;
(38) (39) "Electronic technician II" means personnel employed at the journeyman level to repair and maintain electronic equipment;
(39) (40) "Executive secretary" means personnel employed as the county school superintendent's secretary or as a secretary who is assigned to a position characterized by significant administrative duties;
(40) (41) "Food services supervisor" means qualified personnel not defined as professional personnel or professional educators in section one, article one of this chapter, employed to manage and supervise a county school system's food service program. The duties would include preparing in-service training programs for cooks and food service employees, instructing personnel in the areas of quantity cooking with economy and efficiency and keeping aggregate records and reports;
(41) (42) "Foremen" means skilled persons employed for supervision of personnel who work in the areas of repair and maintenance of school property and equipment;
(42) (43) "General maintenance" means personnel employed as helpers to skilled maintenance employees and to perform minor repairs to equipment and buildings of a county school system;
(43) (44) "Glazier" means personnel employed to replace glass or other materials in windows and doors and to do minor carpentry tasks;
(44) (45) "Graphic artist" means personnel employed to prepare graphic illustrations;
(45) (46) "Groundsmen" means personnel employed to perform duties that relate to the appearance, repair and general care of school grounds in a county school system. Additional assignments may include the operation of a small heating plant and routine cleaning duties in buildings;
(46) (47) "Handyman" means personnel employed to perform routine manual tasks in any operation of the county school system;
(47) (48) "Heating and air conditioning mechanic I" means personnel employed at the apprentice level to install, repair and maintain heating and air conditioning plants and related electrical equipment;
(48) (49) "Heating and air conditioning mechanic II" means personnel employed at the journeyman level to install, repair and maintain heating and air conditioning plants and related electrical equipment;
(49) (50) "Heavy equipment operator" means personnel employed to operate heavy equipment;
(50) (51) "Inventory supervisor" means personnel who are employed to supervise or maintain operations in the receipt, storage, inventory and issuance of materials and supplies;
(51) (52) "Key punch operator" means qualified personnel employed to operate key punch machines or verifying machines;
(52) (53) "Locksmith" means personnel employed to repair and maintain locks and safes;
(53) (54) "Lubrication man" means personnel employed to lubricate and service gasoline or diesel-powered equipment of a county school system;
(54) (55) "Machinist" means personnel employed to perform machinist tasks which include the ability to operate a lathe, planer, shaper, threading machine and wheel press. These personnel should also have, the ability to work from blueprints and drawings;
(55) (56) "Mail clerk" means personnel employed to receive, sort, dispatch, deliver or otherwise handle letters, parcels and other mail;
(56) (57) "Maintenance clerk" means personnel employed to maintain and control a stocking facility to keep adequate tools and supplies on hand for daily withdrawal for all school maintenance crafts;
(57) (58) "Mason" means personnel employed to perform tasks connected with brick and block laying and carpentry tasks related to such laying;
(58) (59) "Mechanic" means personnel employed who can independently perform skilled duties in the maintenance and repair of automobiles, school buses and other mechanical and mobile equipment to use in a county school system;
(59) (60) "Mechanic assistant" means personnel employed as a mechanic apprentice and helper;
(60) (61) "Multiclassification" means personnel employed to perform tasks that involve the combination of two or more class titles in this section. In these instances the minimum salary scale shall be the higher pay grade of the class titles involved;
(61) (62) "Office equipment repairman I" means personnel employed as an office equipment repairman apprentice or helper;
(62) (63) "Office equipment repairman II" means personnel responsible for servicing and repairing all office machines and equipment. Personnel are responsible for parts being purchased necessary for the proper operation of a program of continuous maintenance and repair;
(63) (64) "Painter" means personnel employed to perform duties of painting, finishing and decorating of wood, metal and concrete surfaces of buildings, other structures, equipment, machinery and furnishings of a county school system;
(64) (65) "Paraprofessional" means a person certified pursuant to section two-a, article three of this chapter to perform duties in a support capacity including, but not limited to, facilitating in the instruction and direct or indirect supervision of pupils under the direction of a principal, a teacher or another designated professional educator: Provided, That no person employed on the effective date of this section in the position of an aide may be reduced in force or transferred to create a vacancy for the employment of a paraprofessional: Provided, however, That if any employee has held or holds an aide title and becomes employed as a paraprofessional, the employee shall hold a multiclassification status that includes aide and paraprofessional titles in accordance with section eight-b of this article: Provided further, That once an employee who holds an aide title becomes certified as a paraprofessional and is required to perform duties that may not be performed by an aide without paraprofessional certification, he or she shall receive the paraprofessional title pay grade;
(66) "Payroll supervisor" means personnel who are employed in the county board office who have primary responsibility for the payroll function, which may include the supervision of other personnel, and who have either completed twelve college hours of accounting from an accredited institution of higher education or have at least eight years of experience performing progressively difficult accounting tasks;
(65) (67) "Plumber I" means personnel employed as an apprentice plumber and helper;
(66) (68) "Plumber II" means personnel employed as a journeyman plumber;
(67) (69) "Printing operator" means personnel employed to operate duplication equipment, and as required, to cut, collate, staple, bind and shelve materials;
(68) (70) "Printing supervisor" means personnel employed to supervise the operation of a print shop;
(69) (71) "Programmer" means personnel employed to design and prepare programs for computer operation;
(70) (72) "Roofing/sheet metal mechanic" means personnel employed to install, repair, fabricate and maintain roofs, gutters, flashing and duct work for heating and ventilation;
(71) (73) "Sanitation plant operator" means personnel employed to operate and maintain a water or sewage treatment plant to ensure the safety of the plant's effluent for human consumption or environmental protection;
(72) (74) "School bus supervisor" means qualified personnel employed to assist in selecting school bus operators and routing and scheduling of school buses, operate a bus when needed, relay instructions to bus operators, plan emergency routing of buses and promoting good relationships with parents, pupils, bus operators and other employees;
(73) (75) "Secretary I" means personnel employed to transcribe from notes or mechanical equipment, receive callers, perform clerical tasks, prepare reports and operate office machines;
(74) (76) "Secretary II" means personnel employed in any elementary, secondary, kindergarten, nursery, special education, vocational or any other school as a secretary. The duties may include performing general clerical tasks, transcribing from notes or stenotype or mechanical equipment or a sound-producing machine, preparing reports, receiving callers and referring them to proper persons, operating office machines, keeping records and handling routine correspondence. There is nothing implied in this subdivision that would prevent the employees from holding or being elevated to a higher classification;
(75) (77) "Secretary III" means personnel assigned to the county board office administrators in charge of various instructional, maintenance, transportation, food services, operations and health departments, federal programs or departments with particular responsibilities of purchasing and financial control or any personnel who have served in a position which meets the definition of "secretary II" or "secretary III" in this section for eight years;
(76) (78) "Supervisor of maintenance" means skilled personnel not defined as professional personnel or professional educators as in section one, article one of this chapter. The responsibilities would include directing the upkeep of buildings and shops, issuing instructions to subordinates relating to cleaning, repairs and maintenance of all structures and mechanical and electrical equipment of a board;
(77) (79) "Supervisor of transportation" means qualified personnel employed to direct school transportation activities, properly and safely, and to supervise the maintenance and repair of vehicles, buses and other mechanical and mobile equipment used by the county school system;
(78) (80) "Switchboard operator-receptionist" means personnel employed to refer incoming calls, to assume contact with the public, to direct and to give instructions as necessary, to operate switchboard equipment and to provide clerical assistance;
(79) (81) "Truck driver" means personnel employed to operate light or heavy duty gasoline and diesel-powered vehicles;
(80) (82) "Warehouse clerk" means personnel employed to be responsible for receiving, storing, packing and shipping goods;
(81) (83) "Watchman" means personnel employed to protect school property against damage or theft. Additional assignments may include operation of a small heating plant and routine cleaning duties; and
(82) (84) "Welder" means personnel employed to provide acetylene or electric welding services for a school system.
(j) In addition to the compensation provided for in section eight-a of this article, for service personnel, each service employee is, notwithstanding any provisions in this code to the contrary, entitled to all service personnel employee rights, privileges and benefits provided under this or any other chapter of this code without regard to the employee's hours of employment or the methods or sources of compensation.
(k) Service personnel whose years of employment exceed the number of years shown and provided for under the state minimum pay scale set forth in section eight-a of this article may not be paid less than the amount shown for the maximum years of employment shown and provided for in the classification in which he or she is employed.
(l) The county boards shall review each service personnel employee job classification annually and shall reclassify all service employees as required by the job classifications. The state superintendent of schools may withhold state funds appropriated pursuant to this article for salaries for service personnel who are improperly classified by the county boards. Further, the state superintendent shall order county boards to correct immediately any improper classification matter and with the assistance of the attorney general shall take any legal action necessary against any county board to enforce the order.
(m) No service employee, without his or her written consent, may be reclassified by class title, nor may a service employee, without his or her written consent, be relegated to any condition of employment which would result in a reduction of his or her salary, rate of pay, compensation or benefits earned during the current fiscal year or which would result in a reduction of his or her salary, rate of pay, compensation or benefits for which he or she would qualify by continuing in the same job position and classification held during that fiscal year and subsequent years.
(n) Any board failing to comply with the provisions of this article may be compelled to do so by mandamus, and is liable to any party prevailing against the board for court costs and the prevailing party's reasonable attorney fee, as determined and established by the court.
(o) Notwithstanding any provisions in this code to the contrary, service personnel who hold a continuing contract in a specific job classification and who are physically unable to perform the job's duties as confirmed by a physician chosen by the employee shall be given priority status over any employee not holding a continuing contract in filling other service personnel job vacancies if qualified as provided in section eight-e of this article.
§18A-4-8a. Service personnel minimum monthly salaries.
(1) The minimum monthly pay for each service employee whose employment is for a period of more than three and one-half hours a day shall be at least the amounts indicated in the "state minimum pay scale pay grade I" and the minimum monthly pay for each service employee whose employment is for a period of three and one-half hours or less a day shall be at least one-half the amount indicated in the "state minimum pay scale pay grade I" set forth in this section: Provided, That beginning the first day of the second half of the employment term in the school year two thousand one-two thousand two the minimum monthly pay for each service employee whose employment is for a period of more than three and one-half hours a day shall be at least the amounts indicated in the "state minimum pay scale pay grade II" and the minimum monthly pay for each service employee whose employment is for a period of three and one-half hours or less a day shall be at least one-half the amount indicated in the "state minimum pay scale pay grade II" set forth in this section.
STATE MINIMUM PAY SCALE PAY GRADE I

A
B
C
D
E
F
G
H

01,100
1,1201,160
1,210
1,260
1,320
1,3501,420

11,1271,1471,1871,2371,287
1,3471,3771,447

21,1541,1741,2141,2641,3141,3741,4041,474
31,1811,2011,2411,2911,3411,4011,4311,501
41,2081,2281,2681,3181,3681,4281,4581,528
51,2351,2551,2951,3451,3951,4551,4851,555
61,2621,2821,3221,3721,4221,4821,5121,582
71,2891,3091,3491,3991,4491,5091,5391,609
81,3161,3361,3761,4261,4761,5361,5661,636
91,3431,3631,4031,4531,5031,5631,5931,663
101,3701,3901,4301,4801,5301,5901,6201,690
111,3971,4171,4571,5071,5571,6171,6471,717
121,4241,4441,4841,5341,5841,6441,6741,744
131,4511,4711,5111,5611,6111,6711,7011,771
141,4781,4981,5381,5881,6381,6981,7281,798
151,5051,5251,5651,6151,6651,7251,7551,825
161,5321,5521,5921,6421,6921,7521,7821,852
171,5591,5791,6191,6691,7191,7791,8091,879
181,5861,6061,6461,6961,7461,8061,8361,906
191,6131,6331,6731,7231,7731,8331,8631,933
201,6401,6601,7001,7501,8001,8601,8901,960
211,6671,6871,7271,7771,8271,8871,9171,987
221,6941,7141,7541,8041,8541,9141,9442,014
231,7211,7411,7811,8311,8811,9411,9712,041
241,7481,7681,8081,8581,9081,9681,9982,068
251,7751,7951,835
1,885
1,935
1,9952,0252,095

261,8021,8221,8621,9121,9622,0222,0522,122
271,8291,8491,8891,9391,9892,0492,0792,149
281,8561,8761,916
1,966
2,0162,0762,1062,176

291,8831,9031,9431,9932,0432,1032,1332,203
301,9101,9301,9702,0202,0702,1302,1602,230
311,9371,9571,9972,0472,0972,1572,1872,257
321,9641,9842,0242,0742,1242,1842,2142,284
331,9912,0112,0512,1012,1512,2112,2412,311
342,0182,0382,078
2,128
2,1782,2382,2682,338

352,0452,0652,1052,1552,2052,2652,2952,365
362,0722,0922,1322,1822,2322,2922,3222,392
Subject to a recommendation by the governor for a pay raise through the delivery of an executive message to the Legislature and an appropriation by the Legislature for a pay raise, effective the first day of July, one thousand nine hundred ninety-nine and thereafter, the minimum monthly pay for each service employee whose employment is for a period of more than three and one-half hours a day shall be at least the amounts indicated in the "state minimum pay scale pay grade II" and the minimum monthly pay for each service employee whose employment is for a period of three and one-half hours or less a day shall be at least one-half the amount indicated in the "state minimum pay scale pay grade II" set forth in this section.
STATE MINIMUM PAY SCALE PAY GRADE II

Years of
Employment
Pay Grade

 A B C D E F G H
01,1601,1801,2201,2701,3201,3801,410
1,480

11,1881,2081,2481,2981,3481,4081,4381,508
21,2161,2361,2761,3261,3761,4361,4661,536
31,2441,2641,3041,3541,4041,4641,4941,564
41,2721,2921,3321,3821,4321,4921,5221,592
51,3001,3201,3601,4101,4601,5201,5501,620
61,3281,3481,3881,4381,4881,5481,5781,648
71,3561,3761,4161,4661,5161,5761,6061,676
81,3841,4041,4441,4941,5441,6041,6341,704
91,4121,4321,4721,5221,5721,6321,6621,732
101,4401,4601,5001,5501,6001,6601,6901,760
111,4681,4881,5281,5781,6281,6881,7181,788
121,4961,5161,5561,6061,6561,7161,7461,816
131,5241,5441,5841,6341,6841,744
1,7741,844

141,5521,5721,6121,6621,7121,7721,8021,872
151,5801,6001,6401,6901,7401,800
1,8301,900

161,6081,6281,6681,7181,7681,82
1,8581,928

171,6361,6561,6961,7461,7961,8561,8861,956
181,6641,6841,7241,7741,8241,8841,9141,984
191,6921,7121,7521,8021,8521,912
1,9422,012

201,7201,7401,7801,8301,8801,9401,9702,040
211,7481,7681,8081,8581,9081,9681,9982,068
221,7761,7961,8361,8861,9361,9962,0262,096
231,8041,8241,8641,9141,9642,0242,0542,124
241,8321,8521,8921,9421,9922,0522,0822,152
251,8601,8801,9201,9702,0202,0802,1102,180
261,8881,9081,9481,9982,0482,1082,1382,208
27 1,916 1,936 1,976 2,026 2,076 2,1362,1662,236
281,9441,9642,004
2,0542,1042,1642,1942,264

291,9721,9922,0322,0822,1322,192
2,222 2,292

302,000
2,020
2,0602,1102,1602,2202,250
2,320

312,0282,0482,0882,1382,1882,2482,2782,348
322,056
2,076
2,116
2,166
2,216
2,276
2,306
2,376

332,084
2,104
2,144
2,194
2,244
2,304
2,334
2,404

342,112
2,132
2,172
2,222
2,272
2,332
2,362
2,432

352,140
2,160
2,200
2,250
2,300
2,360
2,390
2,460

362,168
2,188
2,228
2,278
2,328
2,388
2,418
2,488

If "state minimum pay scale pay grade II" becomes effective on the first day of July, one thousand nine hundred ninety-nine, and the governor recommends a pay raise through the delivery of an executive message to the Legislature and the Legislature appropriates money for a pay raise, the minimum monthly pay for each service employee whose employment is for a period of more than three and one-half hours a day shall be at least the amounts indicated in the "state minimum pay scale pay grade III" and the minimum monthly pay for each service employee whose employment is for a period of three and one-half hours or less a day shall be at least one-half the amount indicated in the "state minimum pay scale pay grade III" set forth in this section.
STATE MINIMUM PAY SCALE PAY GRADE III I

Years of
Employment
Pay Grade

A
B C D E F G H

0
1,220
1,240
1,280
1,330
1,380
1,440
1,470
1,540

11,2491,2691,309
1,359
1,409
1,469
1,4991,569

21,278
1,298
1,338
1,388
1,438
1,498
1,5281,598

3
1,307
1,327
1,367
1,417
1,467
1,527
1,5571,627

41,336
1,356
1,396
1,446
1,496
1,556
1,5861,656

51,365
1,385
1,425
1,475
1,525
1,585
1,6151,685

61,394
1,414
1,454
1,504
1,554
1,6141,6441,714

71,423
1,443
1,483
1,533
1,583
1,6431,6731,743

81,452
1,472
1,512
1,562
1,612
1,6721,7021,772

91,481
1,501
1,541
1,591
1,641
1,701
1,7311,801

101,510
1,530
1,570
1,620
1,670
1,730
1,7601,830

111,539
1,559
1,599
1,649
1,699
1,7591,7891,859

121,568
1,588
1,628
1,678
1,728
1,7881,8181,888

131,597
1,617
1,657
1,707
1,757
1,8171,8471,917

141,626
1,646
1,686
1,736
1,786
1,8461,8761,946

151,655
1,675
1,715
1,765
1,815
1,8751,9051,975

161,684
1,704
1,744
1,794
1,844
1,904
1,9342,004

171,713
1,733
1,773
1,8231,873
1,9331,9632,033

181,742
1,762
1,802
1,852
1,902
1,9621,9922,062

191,771
1,791
1,831
1,881
1,931
1,9912,0212,091

201,800
1,820
1,860
1,910
1,960
2,0202,0502,120

211,829
1,849
1,889
1,939
1,989
2,0492,0792,149

221,858
1,878
1,918
1,968
2,018
2,0782,1082,178

231,887
1,907
1,947
1,997
2,047
2,1072,1372,207

241,916
1,936
1,976
2,026
2,076
2,1362,1662,236

251,945
1,965
2,005
2,055
2,105
2,1652,1952,265

261,974
1,994
2,034
2,084
2,134
2,1942,2242,294

272,003
2,023
2,063
2,113
2,163
2,2232,2532,323

282,0322,0522,092
2,142
2,192
2,2522,2822,352

292,061
2,081
2,121
2,171
2,221
2,2812,3112,381

302,090
2,110
2,150
2,200
2,250
2,3102,3402,410

312,119
2,139
2,179
2,229
2,279
2,3392,3692,439

322,148
2,168
2,208
2,258
2,308
2,3682,3982,468

332,177
2,197
2,237
2,287
2,337
2,3972,4272,497

342,206
2,226
2,266
2,316
2,366
2,4262,4562,526

352,235
2,255
2,295
2,345
2,395
2,4552,4852,555

362,264
2,284
2,324
2,374
2,424
2,4842,5142,584

372,293
2,313
2,353
2,403
2,453
2,5132,5432,613

382,322
2,342
2,382
2,432
2,482
2,5422,5722,642

392,351
2,371
2,411
2,461
2,511
2,5712,6012,671

402,380
2,400
2,440
2,490
2,540
2,6002,6302,700

STATE MINIMUM PAY SCALE PAY GRADE II

Years of
Employment Pay Grade
 A B C D E F G H
01,2951,3151,3551,4051,4551,5151,5451,615
11,3241,3441,3841,4341,4841,5441,5741,644
21,3531,3731,4131,4631,5131,5731,6031,673
31,3821,4021,4421,4921,5421,6021,6321,702
41,4111,4311,4711,5211,5711,6311,6611,731
51,4401,4601,5001,5501,6001,6601,6901,760
61,4691,4891,5291,5791,6291,6891,7191,789
71,4981,5181,5581,6081,6581,7181,7481,818
81,5271,5471,5871,6371,6871,7471,7771,847
91,5561,5761,6161,6661,7161,7761,8061,876
101,5851,6051,6451,6951,7451,8051,8351,905
111,6141,6341,6741,7241,7741,8341,8641,934
121,6431,6631,7031,7531,8031,8631,8931,963
131,6721,6921,7321,7821,8321,8921,9221,992
141,7011,7211,7611,8111,8611,9211,9512,021
151,7301,7501,7901,8401,8901,9501,9802,050
161,7591,7791,8191,8691,9191,9792,0092,079
171,7881,8081,8481,8981,9482,0082,0382,108
181,8171,8371,8771,9271,9772,0372,0672,137
191,8461,8661,9061,9562,0062,0662,0962,166
201,8751,8951,9351,9852,0352,0952,1252,195
211,9041,9241,9642,0142,0642,1242,1542,224
221,9331,9531,9932,0432,0932,1532,1832,253
231,9621,9822,0222,0722,1222,1822,2122,282
241,9912,0112,0512,1012,1512,2112,2412,311
252,0202,0402,0802,1302,1802,2402,2702,340
262,0492,0692,1092,1592,2092,2692,2992,369
272,0782,0982,1382,1882,2382,2982,3282,398
282,1072,1272,1672,2172,2672,3272,3572,427
292,1362,1562,1962,2462,2962,3562,3862,456
302,1652,1852,2252,2752,3252,3852,4152,485
312,1942,2142,2542,3042,3542,4142,4442,514
322,2232,2432,2832,3332,3832,4432,4732,543
332,2522,2722,3122,3622,4122,4722,5022,572
342,2812,3012,3412,3912,4412,5012,5312,601
352,3102,3302,3702,4202,4702,5302,5602,630
362,3392,3592,3992,4492,4992,5592,5892,659
372,3682,3882,4282,4782,5282,5882,6182,688
382,3972,4172,4572,5072,5572,6172,6472,717
392,4262,4462,4862,5362,5862,6462,6762,746
402,4552,4752,5152,5652,6152,6752,7052,775
CLASS TITLEPAY GRADE
Accountant ID
Accountant IIE
Accountant IIIF
Accounts Payable SupervisorG
Aide IA
Aide IIB
Aide IIIC
Aide IVD
Audiovisual TechnicianC
AuditorG
Autism MentorE
Braille or Sign Language SpecialistE
Bus OperatorD
BuyerF
CabinetmakerG
Cafeteria ManagerD
Carpenter IE
Carpenter IIF
Chief MechanicG
Clerk IB
Clerk IIC
Computer OperatorE
Cook IA
Cook IIB
Cook IIIC
Crew LeaderF
Custodian IA
Custodian IIB
Custodian IIIC
Custodian IVD
Director or Coordinator of ServicesH
DraftsmanD
Electrician IF
Electrician IIG
Electronic Technician IF
Electronic Technician IIG
Executive SecretaryG
Food Services SupervisorG
ForemanG
General MaintenanceC
GlazierD
Graphic ArtistD
GroundsmanB
HandymanB
Heating and Air Conditioning Mechanic IE
Heating and Air Conditioning Mechanic IIG
Heavy Equipment OperatorE
Inventory SupervisorD
Key Punch OperatorB
LocksmithG
Lubrication ManC
MachinistF
Mail ClerkD
Maintenance Clerk C
MasonG
MechanicF
Mechanic AssistantE
Office Equipment Repairman IF
Office Equipment Repairman IIG
PainterE
ParaprofessionalF
Payroll SupervisorG
Plumber IE
Plumber IIG
Printing OperatorB
Printing SupervisorD
ProgrammerH
Roofing/Sheet Metal MechanicF
Sanitation Plant OperatorF
School Bus SupervisorE
Secretary ID
Secretary IIE
Secretary IIIF
Supervisor of MaintenanceH
Supervisor of TransportationH
Switchboard Operator-ReceptionistD
Truck DriverD
Warehouse ClerkC
WatchmanB
WelderF
(2) An additional ten twelve dollars per month shall be added to the minimum monthly pay of each service employee who holds a high school diploma or its equivalent.
(3) An additional ten dollars per month also shall be added to the minimum monthly pay of each service employee for each of the following:
(A) A service employee who holds twelve college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(B) A service employee who holds twenty-four college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(C) A service employee who holds thirty-six college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(D) A service employee who holds forty-eight college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(E) A service employee who holds sixty college hours or comparable credit obtained in a trade or vocational school as approved by the state board; and
(F) A service employee who holds seventy-two college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(G) A service employee who holds eighty-four college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(H) A service employee who holds ninety-six college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(I) A service employee who holds one hundred eight college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(J) A service employee who holds one hundred twenty college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(K) A service employee who holds a bachelor's degree; and
(L) A service employee who holds a master's degree.
(4) When any part of a school service employee's daily shift of work is performed between the hours of six o'clock p.m. and five o'clock a.m. the following day, the employee shall be paid no less than an additional ten dollars per month and one half of the pay shall be paid with local funds.
(5) Any service employee required to work on any legal school holiday shall be paid at a rate one and one-half times the employee's usual hourly rate.
(6) Any full-time service personnel required to work in excess of their normal working day during any week which contains a school holiday for which they are paid shall be paid for the additional hours or fraction of the additional hours at a rate of one and one-half times their usual hourly rate and paid entirely from county board funds.
(7) No service employee may have his or her daily work schedule changed during the school year without the employee's written consent and the employee's required daily work hours may not be changed to prevent the payment of time and one-half wages or the employment of another employee.
(8) The minimum hourly rate of pay for extra duty assignments as defined in section eight-b of this article shall be no less than one seventh of the employee's daily total salary for each hour the employee is involved in performing the assignment and paid entirely from local funds: Provided, That an alternative minimum hourly rate of pay for performing extra duty assignments within a particular category of employment may be utilized if the alternate hourly rate of pay is approved both by the county board and by the affirmative vote of a two-thirds majority of the regular full-time employees within that classification category of employment within that county: Provided, however, That the vote shall be by secret ballot if requested by a service personnel employee within that classification category within that county. The salary for any fraction of an hour the employee is involved in performing the assignment shall be prorated accordingly. When performing extra duty assignments, employees who are regularly employed on a one-half day salary basis shall receive the same hourly extra duty assignment pay computed as though the employee were employed on a full-day salary basis.
(9) The minimum pay for any service personnel employees engaged in the removal of asbestos material or related duties required for asbestos removal shall be their regular total daily rate of pay and no less than an additional three dollars per hour or no less than five dollars per hour for service personnel supervising asbestos removal responsibilities for each hour these employees are involved in asbestos related duties. Related duties required for asbestos removal include, but are not limited to, travel, preparation of the work site, removal of asbestos decontamination of the work site, placing and removal of equipment and removal of structures from the site. If any member of an asbestos crew is engaged in asbestos related duties outside of the employee's regular employment county, the daily rate of pay shall be no less than the minimum amount as established in the employee's regular employment county for asbestos removal and an additional thirty dollars per each day the employee is engaged in asbestos removal and related duties. The additional pay for asbestos removal and related duties shall be payable entirely from county funds. Before service personnel employees may be utilized in the removal of asbestos material or related duties, they shall have completed a federal Environmental Protection Act approved training program and be licensed. The employer shall provide all necessary protective equipment and maintain all records required by the Environmental Protection Act.
(10) For the purpose of qualifying for additional pay as provided in section eight, article five of this chapter, an aide shall be considered to be exercising the authority of a supervisory aide and control over pupils if the aide is required to supervise, control, direct, monitor, escort or render service to a child or children when not under the direct supervision of certificated professional personnel within the classroom, library, hallway, lunchroom, gymnasium, school building, school grounds or wherever supervision is required. For purposes of this section, "under the direct supervision of certificated professional personnel" means that certificated professional personnel is present, with and accompanying the aide.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 22B. LIMITED VIDEO LOTTERY.
Part 1. General Provisions.

§29-22B-101. Short title.
This article shall be known and may be cited as the "Limited Video Lottery Act".
§29-22B-102. Authorization for limited video lottery; regulation by lottery commission.

Limited video lottery is hereby authorized and may be operated and maintained subject to the provisions of this article. The limited video lottery authorized by this article, being a lottery, is subject to regulation by the West Virginia lottery commission.
§29-22B-103. Exceptions.
(a) Nothing in this article shall be construed in any way to modify, amend, or otherwise affect the validity of any provisions regulating charitable bingo and raffles as set forth in articles 47-20-1, et seq., and 47-21-1, et seq., of this code.
(b) Nothing contained in this article shall be construed to modify, amend, or otherwise affect the validity of any provisions regulating racetrack video lottery as set forth in article 22A of this chapter.
Part 2. Legislative Findings.

§29-22B-201. Legislative finding; constitutional authority; limited video lottery is a lottery.

The Legislature finds and declares that:
(1) The Constitution grants to the Legislature the authority to establish, by general law, lotteries which are regulated, controlled, owned and operated by the state of West Virginia; and
(2) The limited video lottery authorized by this article is a "lottery" as that term is commonly understood and as that term is used in the West Virginia Constitution, article 6, section 36. The limited video lottery authorized as video lottery games in this article is a system of lottery games that utilize advanced computer technology.
§29-22B-202. Legislative finding; state ownership of video lottery through outright ownership or possession of a proprietary interest in computer hardware and software.

The Legislature further finds and declares that:
(1) The state can control, own and operate a video lottery by possessing a proprietary interest in the main logic boards, all erasable, programmable read-only memory chips used in any video lottery equipment or games, and software consisting of computer programs, documentation and other related materials necessary for the video lottery system to be operated;
(2) The state may possess a proprietary interest in video lottery game software, for purposes of this article, through outright ownership or through an exclusive product license agreement with a manufacturer whereby (A) the manufacturer retains copyrighted ownership of the software, (B) the product license granted to the state is nontransferable, and (C) the agreement authorizes the state to run the software program, solely for its own use, on the state's central equipment unit and electronic video terminals networked to the central equipment unit; and
(3) The state can control and regulate a video lottery if the state (A) restricts licensure to a limited number of video lottery terminals at qualified locations, (B) extends strict and exclusive state regulation to all persons, locations, practices and associations related to the operation of licensed limited video lottery facilities, and (C) provides comprehensive law enforcement supervision of limited video lottery activities.
§29-22B-203. Legislative finding; license to participate in limited video lottery is a privilege.

The Legislature further finds and declares that:
(1) A person seeking a license or other affirmative lottery commission approval has no right to a license or to the granting of the approval sought. Any license issued or other commission approval granted pursuant to the provisions of this article is a revocable privilege;
(2) The licensing, control and regulation of limited video lottery by the state does not create (A) any property right in a license issued pursuant to this article, (B) any right to transfer or encumber a license, (C) any vested right in a license, or (D) the accrual of any value to the privilege of participation in any limited video lottery activity; and
(3) That the privilege of participation in limited video lottery operations is conditioned upon (A) the proper and continuing individual qualification of an applicant or licensee, and (B) the discharge of the affirmative responsibility of each licensee to provide the regulatory and investigatory authorities with any assistance and information necessary to assure that the policies declared by this article are achieved.
Part 3. Definitions.

§29-22B-301. Applicability of definitions.
For the purposes of this article, the words or terms defined in this part 3, and any variation of those words or terms required by the context, have the meanings ascribed to them in this part 3. These definitions are applicable unless a different meaning clearly appears from the context.
§29-22B-302. Applicant defined.
"Applicant" means a person applying for a license required by this article for lawful participation in limited video lottery.
§29-22B-303. Associated equipment defined.
"Associated equipment" means any hardware located on an operator's premises, other than the video lottery terminals themselves, that is connected to the video lottery terminal or to the central computer for the purpose of performing communication, validation or other functions. "Associated equipment" does not include the communication equipment and facilities of a regulated public utility.
§29-22B-304. Background investigation defined.
"Background investigation" means a security, criminal and credit investigation of an applicant who has applied for the issuance or renewal of a license pursuant to this article, or a licensee who holds a current license.
§29-22B-305. Central computer, central control computer or central site system defined.
"Central computer," "central control computer" or "central site system" means any central site computer provided to and controlled by the commission to which video lottery terminals communicate for purposes of information retrieval and terminal activation and to disable programs.
§29-22B-306. Commission or state lottery commission defined.
"Commission" or "state lottery commission" means the West Virginia lottery commission created by article 22 of this chapter.
§29-22B-307. Control defined.
"Control" means the authority to direct the management and policies of an applicant or a license holder.
§29-22B-308. Director defined.
"Director" means the individual appointed by the governor to provide management and administration necessary to direct the state lottery office.
§29-22B-309. Disable or terminal disable defined.
"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.
§29-22B-310. Display defined.
"Display" means the visual presentation of video lottery game features on the video display monitor or screen of a video lottery terminal.
§29-22B-311. EPROM and erasable programmable read-only memory chips defined.

"EPROM" and "erasable programmable read-only memory chips" means the electronic storage medium on which the operation software for all games playable on a video lottery terminal resides and which can also be in the form of CD-ROM, flash RAM or other new technology medium that the commission may from time to time approve for use in video lottery terminals. All electronic storage media are considered to be the property of the state of West Virginia.
§29-22B-312. Identification document defined.
"Identification document" means a document made or issued by or under the authority of the United States government, a state, a political subdivision of a state, a foreign government or a political subdivision of a foreign government, which, when completed with information concerning a particular individual, is of the type intended or commonly accepted for the purpose of identifying individuals.
§29-22B-313. Indirect ownership defined.
"Indirect ownership" means an interest a person owns in an entity or in property solely as a result of application of constructive ownership rules without regard to any direct ownership interest (or other beneficial interest) in the entity or property. "Indirect ownership" shall be determined under the same rules applicable to determining whether a gain or loss between related parties is recognized for federal income tax purposes.
§29-22B-314. License defined.
"License" or "video lottery license" means authorization granted by the commission pursuant to this article to a person permitting that person to engage in the activity for which the license was issued. "License used in this article" means a license issued by the commission as provided in this article that has not expired or been cancelled, revoked or suspended by the director or the commission.
§29-22B-315. Location defined.
"Location" means a restricted access adult-only facility located on premises in which the limited video lottery retailer holds a license as provided in section 22B-501 of this article.
§29-22B-316. Limited video lottery retailer defined.
"Limited video lottery retailer" means a person who holds either a valid license issued under article seven, chapter sixty of this code, to operate a private club, or who holds a valid Class A license issued under article sixteen, chapter eleven of this code, to operate a business where nonintoxicating beer is sold for consumption on the premises, or who holds both licenses, and the person also holds a valid limited video lottery retailer's license issued under this article.
§29-22B-317. Lottery defined.
"Lottery" means the public gaming systems or games regulated, controlled, owned and operated by the state lottery commission as provided in this article and in articles twenty-two, twenty-two-a and twenty-five of this chapter.
§29-22B-318. Manufacturer defined.
"Manufacturer" means any person holding a license issued under this article by the commission which allows the person to engage in the business of designing, building, constructing, assembling or manufacturing video lottery terminals, the electronic computer components of the video lottery terminals, the random number generator of the video lottery terminals, or the cabinet in which the video lottery terminal is housed, and whose product is intended for sale, lease or other assignment to a person who is licensed under this article as an operator in West Virginia.
§29-22B-319. National criminal history background check system defined.

"National criminal history background check system" means the criminal history record system maintained by the Federal Bureau of Investigation based on fingerprint identification or any other method of positive identification;
§29-22B-320. Net terminal income and gross terminal income defined.
"Net terminal income" means the portion of gross terminal income collected by the commission from the operators determined to be net terminal income as calculated under subsection 22B-1408(a) of this article. "Gross terminal income" means the total amount of cash inserted into video lottery terminals operated by a licensee, minus the total value of game credits which are cleared from the video lottery terminals in exchange for winning redemption tickets. A licensee may not deduct costs or expenses related to the operation of video lottery games from net terminal income.
§29-22B-321. Operator defined.
"Operator" means a person holding an operator's license granted under this article by the commission allowing the person to: (1) Own or lease a specified number of video lottery terminals from one or more manufacturers; (2) service and repair those video lottery terminals; and (3) enter into contracts with limited video lottery retailers for placement of those video lottery terminals in a restricted access adult-only facility located on the premises of the limited video lottery retailers.
§29-22B-322. Own defined.
"Own" means any beneficial or proprietary interest in any property and includes, but is not limited to, any direct or indirect beneficial or proprietary interest in any business of an applicant or licensee.
§29-22B-323. Permit defined.
"Permit" means the authorization issued by the commission allowing a person licensed as an operator under this article to own or lease a specified number of video lottery terminals.
§29-22B-324. Person defined.
"Person" means any natural person, and any corporation, association, partnership, limited partnership, limited liability company or other entity, regardless of its form, structure or nature, other than a government agency or instrumentality.
§29-22B-325. Player defined.
"Player" means a person who plays a video lottery game on a video lottery terminal at a location licensed by the commission to have video lottery on its premises.
§29-22B-326. Resident of this state defined.
"Resident of this state" means an individual who: (1) Maintains a bona fide full time primary place of abode in this state; (2) is not registered to vote in any other state; (3) if licensed to drive, holds a valid driver's license in this state and does not hold a current driver's license issued by any other state; (4) timely filed personal income tax returns as a resident of this state for the two preceding calendar years (determined by including any authorized extension of time for filing the return); and (5) does not claim to be a resident of any other state for any purpose whatsoever.
§29-22B-327. Restricted access adult-only facility defined.
"Restricted access adult-only facility" means:
(1) A private club licensed under article seven, chapter sixty of this code that is licensed under this article by the commission to allow its members and their guests to play video lottery games; and
(2) A place of business that: (A) Has a "Class A" license issued under article sixteen, chapter eleven of this code to sell nonintoxicating beer for consumption on the premises; (B) derives at least forty percent of its annual gross receipts at that location from sales of nonintoxicating beer to consumers and of such sales, at least sixty percent are sales of nonintoxicating beer for consumption on the premises; (C) maintains a suitable kitchen and dining facility and related equipment for serving meals for on-premises consumption; (D) regularly prepares and sells meals for consumption on the premises; (E) has a separate room suitable for the location of video lottery terminals with adult-only restricted access, the interior of which is not visible to persons outside the room; and (F) after meeting any additional standards developed by the commission to implement and apply this subdivision (2), is licensed under this article by the commission to allow video lottery games to be played in the restricted access adult-only separate room on the premises.
§29-22B-328. Service technician defined.
"Service technician" means an individual who is licensed under this article to service, maintain and repair video lottery terminals that are licensed under this article. A licensed service technician may be a sole proprietor, an employee of the operator of the licensed video lottery terminals or an employee of a business licensed under this article to service, maintain and repair video lottery terminals owned or leased by an operator who is licensed under this article.
§29-22B-329. Video lottery defined.
"Video lottery" means a lottery that allows a game to be played utilizing an electronic computer and an interactive terminal device, equipped with a video screen and keys, a keyboard or other equipment allowing input by an individual player, into which the player inserts coins or currency as consideration in order for play to be available, and through which terminal device, the player may receive free games or a voucher that can be redeemed for a cash or non-cash prize, or nothing, determined wholly or predominantly by chance. "Video lottery" does not include a lottery game that merely utilizes an electronic computer and a video screen to operate a lottery game and communicate the results of the game and which does not utilize an interactive electronic terminal device allowing input by one or more players.
§29-22B-330. Video gambling machine defined.
(a) "Video gambling machine" means a computerized device:
(1) That is not approved and registered by the commission under the provisions of this article or used, possessed or operated pursuant to and under the requirements of the provisions of articles 29-22-1, et seq., 29-22A-1, et seq., 29-25-1, et seq., 47-20-1, et seq., or 47-21-1, et seq., or any reenactment thereof;
(2) That employs a monitor that has a display screen, software programs, graphics board, graphics card or any other necessary components that give the monitor graphics capabilities for displaying and manipulating pictures, words, numbers or symbols;
(3) That has an internal random generator and has a storage medium containing the source language or executable code of a computer program that cannot be reasonably demonstrated to have any use other than, through the display of pictures, words, numbers or symbols, simulating the play of such games as poker, blackjack, roulette, bacarrat, keno, craps, or any other game of skill or chance of whatever name or kind;
(4) That allows a person, by inserting currency, coins, tokens or other similar objects into the machine, or by otherwise making some payment of consideration, to make the machine available for the person to play;
(5) That allows a person playing the machine an opportunity to win (A) cash, (B) play credits, (C) tokens, tickets, vouchers or other things that can be exchanged for cash or any other thing of value, or (D) prizes, premiums, merchandise or any other thing of value, whether by reason of the skill of the player or by the application of the element of chance, or both; and
(6) That can result in a payoff to a winning player automatically from the machine or in any other manner whatsoever.
(b) "Video gambling machine" does not include:
(1) Pin ball machines;
(2) Automatic weighing, measuring, musical, and vending machines which are designed and constructed to give a uniform and fair return in value for each coin deposited and in which there is no element of chance; or
(3) Crane machines.
(c) A machine described in subsection (a) of this section is no less a video gambling machine because it is not in working order or because some mechanical act of manipulation or repair is required to accomplish its adaptation, conversion or workability.
§29-22B-331. Video lottery game defined.
"Video lottery game" means an electronically simulated game of chance that is approved, owned and controlled under this article by the commission, which is displayed on the screen or video monitor of a video lottery terminal and that:
(1) Is connected to the commission's central control computer by an 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) Allows the player to win additional game play credits based upon game rules which establish the random selection of winning combinations of symbols 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 random selection of winning combinations based totally or predominantly on chance;
(5) In the case of a video lottery game which allows the player an option to select replacement symbols or numbers or additional symbols or numbers after the game is initiated and in the course of play, either: (A) Signals the player, prior to any optional selection by the player of randomly generated replacement symbols or numbers, as to which symbols or numbers should be retained by the player to present the best chance, based upon probabilities, that the player may select a winning combination; (B) signals the player, prior to any optional selection by the player of randomly generated additional symbols or numbers, as to whether the additional selection presents the best chance, based upon probabilities, that the player may select a winning combination; or (C) randomly generates additional or replacement symbols and numbers for the player after automatically selecting the symbols and numbers which should be retained to present the best chance, based upon probabilities, for a winning combination, so that in any event, the player is not permitted to benefit from any personal skill, based upon a knowledge of probabilities, before deciding which optional numbers or symbols to choose in the course of video lottery game play;
(6) 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; and
(7) Does not use game themes of roulette, dice or baccarat card games commonly associated with casino gambling: Provided, That games having a video display depicting symbols that appear to roll on drums to simulate a classic casino slot machine, game themes of other card games and keno may be used.
§29-22B-332. Video lottery terminal defined.
"Video lottery terminal" means a commission-approved machine or device that is compatible with the lottery commission's central computer system, and that is used for the purpose of playing video lottery games authorized by the lottery commission.
§29-22B-333. Wager defined.
"Wager" means a sum of money or thing of value risked on an uncertain occurrence.
Part 4. Administration of Limited video lottery.

§29-22B-401. General authority of state lottery commission and director; conflicts.

(a) The lottery commission created by section 29-22-4 of this code is authorized to implement and operate a system of limited video lottery in accordance with the provisions of this article and the applicable provisions of article 22 of this chapter.
(b) The state lottery commission and the director of the commission shall exercise their respective powers and perform their respective duties and functions as specified in this article.
(c) The provisions of article 22 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 22 of this chapter. In that event, the provisions of this article shall supersede any conflicting or inconsistent provisions contained in article 22 of this chapter.
§29-22B-402. Powers and duties of the state lottery commission.

In addition to any other powers and duties set forth in this article or article 22 of this chapter, the lottery commission has the following powers and duties:
(1) To propose legislative rules for promulgation by the Legislature in accordance with the provisions of article 29A-3-1, et seq., of this code, governing the licensing, conduct, and operation of limited video lottery that may be necessary to carry out the purposes of this article. The director shall prepare and submit to the lottery commission written recommendations concerning proposed legislative rules for this purpose;
(2) To propose other rules for promulgation as provided in article 29A-3-1, et seq., of this code not inconsistent with this article which the commission in its discretion believes to be necessary. Authority to propose rules includes the authority to propose amendments to rules and to propose repealing rules;
(3) Notwithstanding any other provision of this code to the contrary, proposed legislative rules for this article filed in the state register by the first day of August, 2001, may be filed as emergency rules.
(4) To conduct hearings upon complaints charging violations of this article or applicable rules, and to conduct other hearings as may be required by this article or rules of the lottery commission;
(3) To enter into written agreements with the state police and local law enforcement agencies for the conduct of identification and investigation of applicants, licensees or employees in accordance with the provisions of this article, including, but not limited to, (A) performing background investigations and criminal records checks and (B) investigating possible violations that may be discovered as a result of an investigatory process or discovered by the tax commissioner, the alcohol beverage control commissioner or the lottery commission in the course of conducting their respective business. Disclosure to the state police or other law enforcement officials of a possible violation of this article and material facts related thereto shall not be deemed to be an unauthorized disclosure of information under section 11-10-5d of this code. Nothing in this section prevents or impairs the state police or local law enforcement agencies from engaging in the activities set forth in this subdivision on their own initiative;
(4) To conduct a continuous study and investigation of limited video lottery throughout the state (A) to ascertain any defects in this article or in legislative rules that may conflict with the purposes of this article, (B) to discover any abuses in the administration, control and oversight of limited video lottery or (C) to discover any violation of this article or applicable legislative rules;
(5) To formulate and recommend proposed legislation amending this article or any applicable legislative rule so as to increase the efficiency and effectiveness of this article;
(6) To report immediately to the governor, the speaker of the house of delegates, the president of the senate, the minority leaders of both houses, and such other state officers as the lottery commission deems appropriate concerning any laws which it determines may require immediate amendment to prevent abuses and violations of this article or any applicable rule or to remedy undesirable conditions in connection with the administration or the operation of limited video lottery;
(7) To require such special reports from the director as it considers necessary;
(8) To issue licenses to those involved in the ownership, participation, or conduct of limited video lottery;
(9) To delegate to the director the authority to issue or deny licenses and renewals under criteria established by the board;
(10) Upon complaint, or upon its own motion, to levy civil penalties and to suspend or revoke licenses that the lottery commission has issued for failure to comply with any applicable provision of this article or rule of the commission;
(11) To establish and collect fees upon persons, licenses, and gaming devices used in, or participating in, limited video lottery as provided in this article or rule of the commission;
(12) To obtain all information from licensees and other persons and agencies which the lottery commission deems necessary or desirable in the conduct of its business;
(13) To issue subpoenas for the appearance or production of persons, records, and things in connection with applications before the lottery commission or in connection with disciplinary or contested cases considered by the lottery commission;
(14) To apply for injunctive or declaratory relief to enforce the provisions of this article and any rules promulgated pursuant to this article;
(15) To impose and collect civil penalties as provided for under this article;
(16) To inspect and examine without notice all premises wherein limited video lottery is conducted or devices or equipment used in limited video lottery are located, manufactured, sold, or distributed, and to summarily seize, remove, and impound, without notice or hearing from such premises any equipment, devices, supplies, books, or records for the purpose of examination or inspection;
(17) To exercise other incidental powers as may be necessary to ensure the safe and orderly regulation of limited gaming and the secure collection of all revenues, including but not limited to taxes, fees, civil penalties and other monies due the commission;
(18) To establish internal control procedures for licensees, including accounting procedures, reporting procedures, and personnel policies;
(19) To establish and collect fees for performing background checks on all applicants for licenses and on all persons with whom the commission may agree with or contract with for the providing of goods or services, as the commission deems appropriate;
(20) To establish and collect fees for performing, or having performed, tests on equipment and devices to be used in limited video lottery;
(21) To demand, at any time when business is being conducted, access to and inspection, examination, photocopying, and auditing of all papers, books, and records of applicants and licensees, on their premises or elsewhere as practicable by authorized employees or agents of the commission and in the presence of the licensee or his agent, pertaining to the gross income produced by any licensed gaming establishment and to require verification of income, and all other matters affecting the enforcement of the policies of the lottery commission or any provision of this article; and to impound or remove all papers, books, and records of applicants and licensees, without hearing, for inspection or examination; and
(22) To prescribe voluntary alternative methods for the making, filing, signing, subscribing, verifying, transmitting, receiving, or storing of returns, writings or other documents.
§29-22B-403. Powers and duties of the director.

In addition to the duties imposed upon the director elsewhere in this article and article 22 of this chapter, the director shall:
(1) Supervise and administer the operation of licensed limited video lottery in accordance with the provisions of this article and the rules of the lottery commission;
(2) Issue licenses to manufacturers, operators, limited video lottery retailers and service technicians, after approval by the lottery commission;
(3) Register video lottery terminals and equipment and issue registration decals;
(4) Collect and deposit license and registration fees due under this article;
(5) Require the mandatory posting by limited video lottery retailers of the rules of play and the odds or house percentage on each video lottery game;
(6) Attend meetings of the lottery commission or appoint a designee to attend in the director's place;
(7) Employ and direct such personnel as may be necessary to carry out the purposes of this article, but no person shall be employed who has been convicted of a felony or gambling-related offense;
(8) With the approval of the lottery commission, enter into agreements with any department, agency, or unit of state government to secure services which the director deems necessary and to provide for the payment for such services;
(9) Employ and compensate such consultants and technical assistants as may be required and as otherwise permitted by law;
(10) Confer with the lottery commission as necessary or desirable, with regard to the operation of the division;
(11) Make available for inspection by the lottery commission or any member of the commission, upon request, all books, records, files, and other information and documents in the director's office;
(12) Advise the lottery commission and recommend to the commission such rules and other procedures as the director deems necessary and advisable to improve the operation of limited video lottery;
(13) With the concurrence of the lottery commission or pursuant to commission requirements and procedures, enter into contracts for materials, equipment, and supplies;
(14) Make a continuous study and investigation of the operation and the administration of similar laws which may be in effect in other states or countries; of any literature on video gaming which from time to time may be published or available; and of any federal laws which may affect the conduct of limited video lottery in this state with a view to recommending or effecting changes that would serve the purposes of this article;
(15) Publish as a public document a monthly report that contains a full and complete statement of the revenue and expenses for each month from limited video lottery operations;
(16) Provide copies of the monthly revenue and expense statement to the lottery commission, the secretary of the department of tax and revenue, the governor, the speaker of the house of delegates, the president of the senate, and the minority leaders of both houses of the Legislature; and
(17) Perform any other acts that the lottery commission finds are necessary or desirable in order to carry out the purposes of this article.
Part 5. Requirements and Qualifications for Licensure.

§29-22B-501. Types of licenses issued for participation in limited video lottery activities.

(a) The lottery commission may issue four types of limited video lottery licenses, as follows:
(1) A manufacturer's license;
(2) An operator's license;
(3) A video lottery retailer's license; and
(4) A service technician's license.
(b) A manufacturer's license is required for all persons who act as a manufacturer as defined in section 3-318 of this article.
(c) An operator's license is required for all persons who engage in the business of placing and operating video gaming machines on the premises of a retailer. A licensed operator shall obtain video gaming machines only from a licensed manufacturer.
(d) A video lottery retailer's license is required for all persons conducting limited video lottery on their premises. Each person licensed as a retailer shall have and maintain sole and exclusive legal possession of the entire premises for which the retail license is issued.
(e) Each license issued pursuant to this section expires one year from the date of its issuance but may be successively renewed upon the filing and approval of an application for renewal.
§29-22B-502. General qualifications for all types of limited video lottery licenses.

No limited video lottery license or license renewal may be granted unless the lottery commission has determined that the applicant satisfies all of the following qualifications:
(1) The applicant is a person of good character, honesty and integrity;
(2) The applicant is a person whose background, criminal record, if any, reputation, habits and associations, do not threaten to (A) compromise the public interest of the citizens of the state, (B) weaken the effective regulation and control of video gaming, (C) breach the security and integrity of the lottery, or (D) introduce corrupt, unfair, or illegal practices, methods and activities into the operation of video gaming or the business or financial transactions incidental to the operation of video gaming;
(3) The applicant has not been convicted of any violation of this article, article 19-23-1, et seq., of this code, articles 22, 22A or 25 of this chapter, or any felony related to theft, bribery, gambling or involving moral turpitude in this or in any other state or foreign country;
(4) The applicant has disclosed to the lottery commission the identity of each person who has control of the applicant, as control is described in section 22B-507, and those persons satisfy all qualifications required by this section and any applicable qualifications required by sections 22B-503 through 22B-506;
(5) The applicant has provided a set of fingerprints and has completed and signed the statement provided for in section 22B- 602;
(6) The applicant has furnished all information, including financial data and documents, certifications, consents, waivers, individual history forms and other materials requested by the lottery commission for purposes of determining qualifications for a license.;
(7) The applicant has not defaulted or been terminated for failure to pay workers' compensation premiums or failed to comply with the terms of a reinstatement agreement; and
(8) The applicant has not failed to pay contributions to employment security.
§29-22B-503. Additional qualifications for an applicant for an operator's license.

No operator's license or license renewal can be granted unless the lottery commission has determined that, in addition to the general requirements set forth in section 22B-502, the applicant satisfies all of the following qualifications:
(1)(A) If the applicant is an individual, the applicant has been a citizen of the United States and a resident of this state for the two year period immediately preceding the application;
(B) If the applicant is a corporation, partnership or other business entity, the chief executive officer and the majority of the officers, directors, members and partners (to the extent each of these groups exists with respect to a particular business organization) have been citizens of the United States and residents of this state for the two year period immediately preceding the application;
(2) The applicant has demonstrated the training, education, business ability and experience necessary to establish, operate and maintain the business for which the license application is made;
(3) The applicant has secured any necessary financing for the business for which the license application is made, and the financing (A) is from a source that meets the qualifications of this section and (B) is adequate to support the successful performance of the duties and responsibilities of the licensee;
(4) The applicant has disclosed 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 lottery commission;
(5) The applicant has filed with the lottery commission a copy of any current or proposed agreement between the applicant and any manufacturer for the sale, lease or other assignment to the operator of video lottery terminals, the electronic computer components of the terminals, the random number generators of the terminals, or the cabinets in which they are housed; and
(6) The applicant does not hold any other license under this article, article 19-23-1, et seq., of this code, or articles 22, 22A or 25 of this chapter, except that an applicant may also be licensed as a service technician.
 (b)(1) A person or a member of his or her immediate family who has an ownership interest in a business entity that submits an application for an operator's license may not (A) submit an application for another operator's license as an individual, (B) serve as an officer, director, member or partner of a business entity that submits an application for another operator's license, or (C) have an ownership interest in any other business entity that submits an application for an operator's license.
(2) Business entities that have common owners or common officers, directors, members or partners may not submit an application for more than one operator's license.

§29-22B-504. Additional qualifications for an applicant for a video gaming retailer's license.
No video gaming retailer's license or license renewal can be granted unless the lottery commission has determined that, in addition to the general requirements set forth in section 22B-502, the applicant satisfies all of the following qualifications:
(1)(A) If the applicant is an individual, the applicant has been a citizen of the United States and a resident of this state for the two year period immediately preceding the application;
(B) If the applicant is a corporation, partnership or other business entity, the chief executive officer and the majority of the officers, directors, members and partners (to the extent each of these groups exists with respect to a particular business organization) have been citizens of the United States and residents of this state for the two year period immediately preceding the application;
(2) The applicant has disclosed to the lottery commission the identity of each person who has control of the applicant, as control is described in section 22B-507;
(3) The applicant holds either (A) a valid license issued under article 60-7-1, et seq., of this code to operate a private club, (B) a valid Class A license issued under article 11-16-1, et seq., of this code to operate a business where nonintoxicating beer is sold for consumption on the premises, or (C) both licenses;
(4) The applicant has demonstrated the training, education, business ability and experience necessary to establish, operate and maintain the business for which the license application is made;
(5) The applicant has secured any necessary financing for the business for which the license application is made, and the financing (A) is from a source that meets the qualifications of this section and (B) is adequate to support the successful performance of the duties and responsibilities of the licensee;
(6) The applicant has disclosed all financing or refinancing arrangements for placement on the applicant's premises of video lottery terminals and associated equipment in the degree of detail requested by the lottery commission;
(7) The applicant has filed with the lottery commission a copy of any current or proposed agreement between the applicant and a licensed operator for the placement on the applicant's premises of video lottery terminals;
(8) The applicant has filed with the lottery commission a copy of any current or proposed agreement between the applicant and a licensed operator for the servicing and maintenance of video lottery terminals by licensed service technicians; and
(9) The applicant does not hold any other license under this article, article 19-23-1, et seq., of this code, or articles 22, 22A or 25 of this chapter, except that an applicant may also be licensed as a service technician.
§29-22B-505. Additional qualification for an applicant for a service technician's license.

No service technician's license or license renewal can be granted unless the lottery commission has determined that, in addition to the general requirements set forth in section 22B- 502, the applicant has passed a technical competence test administered or approved by the lottery commission.
§29-22B-506. Additional qualifications for an applicant for a manufacturer's license.

No manufacturer's license or license renewal can be granted unless the lottery commission has determined that, in addition to the general requirements set forth in section 22B-502, the applicant satisfies all of the following qualifications:
(1) The applicant has obtained, or can obtain, certification of compliance under the provisions of part 15 of the federal communications commission rules for all video lottery terminals placed in this state;
(2) The applicant has demonstrated the capacity to manufacture terminals and associated equipment for placement in this state in accordance with the specifications and procedures set forth in part 9 of this article;
(3) The applicant has demonstrated the ability to maintain and provide an inventory of spare parts so as to assure the timely repair and continuous operation of licensed video lottery terminals placed in this state; and
(4) The applicant has demonstrated the capacity to timely deliver video lottery terminals and associated equipment to licensed operators.
§29-22B-507. Persons having control of an applicant for a limited video lottery license.

The following persons are considered 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.
§29-22B-508. Commission action on applications.

(a) The commission may not issue any license until after the background investigations are concluded. This provision shall not apply to an application for renewal of a license except to the extent background investigations are required of an applicant for renewal of a license in legislative rules of the commission.
(b) The commission shall make an affirmative determination that the applicant is qualified and that the applicable license fees have been paid prior to issuing any license.
§29-22B-509. Incomplete application not to be considered.

(a) The lottery commission shall notify the applicant in writing if an application is incomplete and the notification shall state the deficiencies in the application.
(b)The commission may not consider incomplete applications. The commission may consider an application when the applicant has completed and executed all forms and documents required by the commission and all application fees and costs have been paid.
§29-22B-510. Burden of proving qualification for license.

The burden of proving qualification for any limited video lottery license or for renewal thereof is on the applicant.
§29-22B-511. Issuance of order refusing to issue or renew license, or suspending or revoking same.

(a) The commission shall notify applicants and licensees in writing of the denial, suspension or revocation of a license and the reasons for the denial, suspension or revocation in accordance with the provisions of section 22B-518.
(b) An applicant may request a hearing to review a license denial, suspension or revocation in accordance with part 15 of this article.
§29-22B-512. Review of continuing eligibility for license.

The lottery commission shall determine on a continuing basis the eligibility of licensees to hold a license. Notwithstanding any other provision of this article, each operator and video gaming retailer shall be a resident of this state during the period in which the licensed issued for the operator or video gaming retailer is in effect.
§29-22B-513. Application forms and other documents.

(a) The commission shall determine the forms of application to be used.
(b) All application, registration and disclosure forms and other documents submitted to the lottery commission by or on behalf of the applicant for purposes of determining qualification for a video lottery license shall be sworn to or affirmed before an officer qualified to administer oaths.
§29-22B-514. Failure to reveal material fact; false or misleading material.

An applicant who knowingly fails to reveal any fact that is material to qualification or who knowingly submits false or misleading material information is ineligible for a video lottery license.
§29-22B-515. Bonding requirements for operator's license.

An applicant for an operator's license shall, prior to the issuance of the license, post a bond or irrevocable letter of credit in a manner and in an amount established by the commission. The bond must be issued by a surety company authorized to transact business in West Virginia and the company must be approved by the insurance commission of this state as to solvency and responsibility.
§29-22B-516. Applicant bears the risk of adverse publicity.

Each applicant bears 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 lottery commission pursuant to action on an application. The applicant shall, as a part of its application, expressly waive any and all claims against the lottery 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.
§29-22B- 517. Renewal of licenses.
The commission shall renew video lottery licenses annually on a date set by the commission, if each person seeking license renewal submits the applicable renewal fee, completes all renewal forms provided by the commission, and continues to meet all qualifications for a license.
§29-22B- 518. Annual license fees.
(a) The following license fees shall be paid annually by each licensed operator, manufacturer or service technician:
(1) Operator: $500;
(2) Manufacturer: $10,000;
(3) Service technician: $100.
(b) The applicable fee shall be paid to the commission at the time the application for a license is submitted to the commission and upon the annual renewal date each year thereafter, at which time the license may be renewed.
(c) A manufacturer who ceases supplying any additional video lottery terminals to operators in this state may continue to supply repair parts and service for video lottery terminals previously provided to operators, if an annual renewal fee of one thousand dollars is paid and the manufacturer is otherwise eligible for licensure under this article.
(d) License fees collected under this section shall be deposited in the state tax revenue economic enhancement trust established in section 22B-1409.
Part 6. Background Investigations.

§29-22B-601. Establishment of procedures for background investigations.

(a) The lottery commission, through a cooperative agreement with the state police, shall establish procedures for conducting background investigations for the purpose of determining whether an applicant has been charged with, indicted for, or convicted of a crime that may have bearing upon the applicant's fitness to hold a license under this article.
(b) A background investigation must include, but not be limited to, (1) accessing the national criminal history background check system as defined in section 22B-319 and (2) reviewing any other readily accessible state or federal criminal history records that may be pertinent to the background investigation.
(c) The state police shall make a determination whether the applicant has been convicted of, or is under pending indictment for, a crime that bears upon the applicant's fitness to hold a license under this article and shall convey that determination to the lottery commission.
§29-22B-602. Responsibility of state police in conducting background investigations.

The state police shall establish and maintain an adequate system for background investigations that:
(1) Ensures that timely background investigations are conducted on applicants for limited video lottery licenses, current licensees, and other persons required to be investigated by the lottery commission in accordance with the provisions of this article or by legislative rules promulgated pursuant to this article;
(2) Provides for review and oversight of applicants, current licensees, and other persons on an ongoing basis;
(3) Provides that upon receipt of a background check report lacking disposition data, further research will be conducted in whatever state and local recordkeeping systems are available in order to obtain complete data;
(4) Provides for prompt notification to the lottery commission of the results of background investigations before the issuance or renewal of any of license; and
(5) Clearly defines a standard whereby a person's prior activities, criminal record, if any, or reputation, habits and associations are such as to pose a threat to the public interest or to the effective regulation of limited video lottery, or create or enhance the dangers of unsuitable, unfair, or illegal practices and methods and activities in the conduct of gaming, thereby rendering that person ineligible for licensing.
§29-22B-603. Guidelines for background investigations.
The lottery commission may not request a background check of an applicant under section 22B-601 unless the applicant first provides a set of fingerprints and completes and signs a statement that:
(1) Contains the name, address, and date of birth appearing on a valid identification document (as defined in section 22B- 312) of the applicant;
(2) Declares that the applicant has not been convicted of a crime or, if the applicant has been convicted of a crime, contains a description of the crime and the particulars of the conviction;
(3) Notifies the applicant that the lottery commission will request a background check under section 22B-601; and
(4) Notifies the applicant of the applicant's rights under section 22B-604.
§29-22B-604. Applicant's rights regarding background investigations.

Each applicant who is the subject of a background check is entitled to a copy of any background investigation report, and has the right to challenge the accuracy and completeness of any information contained in the report and to obtain a prompt determination as to the validity of the challenge before a final determination is made by the lottery commission.
Part 7. Duties and Responsibilities of Licensees.

§29-22B-701. General duties of all licensees.
All video lottery license holders shall:
(1) Promptly report to the commission any facts or circumstances related to video lottery operations that constitute a violation of state or federal law;
(2) Conduct all video lottery activities and functions in a manner that 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 that may be asserted against a license holder, this state or the commission and its employees arising from the license 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 or any designated agent of the commission, provide the commission access to all records and the physical premises of the business or businesses where the license holder's video lottery activities occur, for the purpose of monitoring or inspecting the license 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; and
(8) Notify the commission in writing of any proposed change of ownership or control of the license holder and of all other transactions or occurrences relevant to license qualification, and receive commission approval prior to any change of ownership or control of a licensed manufacturer, operator or video lottery retailer.
§29-22B-702. Additional duties of limited video lottery retailers.
In addition to the general duties imposed on all licensees in section 22B-701, a limited video lottery retailer shall:
(1) Attend all commission mandated meetings, seminars and training sessions concerning operation of video lottery terminals, 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 operations and ticket validation procedures at the applicable location;
(4) Permit no person to tamper with or interfere with the operation of any video lottery terminal;
(5) Ensure that telephone lines from the commission's central control computer to the video lottery terminals located at the approved location are at all times connected, and prevent any person from tampering or interfering with the operation of the telephone lines;
(6) Ensure that video lottery terminals are within the sight and control of designated employees of the limited video lottery retailer;
(7) Ensure that video lottery terminals are placed and remain placed in the specific locations which have been approved by the commission. No video lottery terminal or terminals at a location shall be relocated without the prior written approval of the commission;
(8) Monitor video lottery terminals to prevent access to or play by persons who are under the age of twenty-one years or who are visibly intoxicated;
(9) Maintain at all times sufficient change and cash in the denominations accepted by the video lottery terminals;
(10) Provide no access by a player to an automated teller machine (ATM) in the restricted access adult-only facility where video lottery games are played, accept no credit card or debit card from a player for the exchange or purchase of video lottery game credits or for an advance of coins or currency to be utilized by a player to play video lottery games and extend no credit, in any manner, to a player so as to enable the player to play a video lottery game;
(11) Pay for all credits won upon presentment of a valid winning video lottery ticket;
(12) Report promptly in writing to the operator and the commission all video lottery terminal malfunctions and notify the commission in writing of the failure of an operator or service technician to provide prompt service and repair of the terminals and associated equipment;
(13) Conduct no video lottery advertising or promotional activities;
(14) Not use the words "video lottery" in the name of the approved location, or in any directions or advertising visible from outside the retailer's establishment;
(15) Install, post and display prominently within or about the approved location signs, redemption information and other promotional material as required by the commission;
(16) Permit video lottery to be played only during those hours established and approved by the commission: Provided, That the limited video lottery retailer shall not permit video lottery to be played beyond the hour during which liquor may be served;
(17) Contract with no more than one licensed operator for the placement of video lottery terminals at the licensed location;
(18) Maintain insurance covering all losses as the result of fire, theft or vandalism to video lottery terminals and associated equipment; and
(19) Comply with all applicable provisions of this article and rules and orders of the commission.
§29-22B-703. Duties of limited video lottery retailer regarding payment of credits.

(a) A limited video lottery retailer shall not make payment for credits awarded on a video lottery terminal 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 limited video lottery retailer shall 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. The limited video lottery retailer is responsible for all income tax reporting of prize payments paid to players above the threshold set by the United States Internal Revenue Service.
(1) A limited video lottery retailer may not redeem tickets for credits awarded on a video lottery terminal that is not located on its premises;
(2) 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.
(c) A limited video lottery retailer shall deface all redeemed tickets in a manner that prevents any subsequent presentment and payment.
(d) The commission is not responsible for any video lottery terminal malfunction that causes a credit to be wrongfully awarded or denied to players. The operator is solely responsible for any wrongful award or denial of credits.
§29-22B-704. Additional duties of manufacturers.
In addition to the general duties imposed on all licensees in section 22B-701 of this article, a manufacturer shall:
(1) Manufacture terminals and associated equipment for placement in this state in accordance with the specifications and procedures specified in part 9 of this article;
(2) Manufacture terminals and associated equipment to ensure timely delivery to licensed operators;
(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) Pay no compensation of any kind to any limited video lottery retailer or give or transfer anything of value to any limited video lottery retailer, beyond a nominal consideration of one dollar per year;
(5) Provide to licensed operators 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 the video lottery terminals;
(6) 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; and
(7) Comply with all applicable provisions of this article and rules and orders of the commission.
§29-22B-705. Additional duties of operators.
In addition to the general duties imposed on all licensees in section 22B-701 of this article, an operator shall:
(1) Acquire video lottery terminals by purchase, lease or other assignment only from licensed manufacturers;
(2) Acquire no video lottery terminals in excess of the number they are authorized to operate in this state;
(3) Contract with limited video lottery retailers for a secure location for the placement, operation and play of the video lottery terminals;
(4) Pay no compensation of any kind to any limited video lottery retailer or give or transfer anything of value to any limited video lottery retailer, that is in addition to the consideration stated in the written agreement between the operator and the limited video lottery retailer, which may be not less than forty percent nor more than fifty percent of the amount of net terminal income received by the operator in connection with the video lottery terminals at that location;
(5) 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;
(6) Permit no person to tamper with or interfere with the operation of any video lottery terminal;
(7) Ensure that telephone lines from the commission's central control computer to the video lottery terminals located at the approved location are at all times connected, and prevent any person from tampering or interfering with the operation of the telephone lines;
(8) Ensure that video lottery terminals are placed and remain placed in the specific places within the approved locations which have been approved by the commission. No video lottery terminal or terminals at a location shall be relocated without the prior written approval of the commission;
(9) Assume financial responsibility for proper and timely payments by limited video lottery retailers of all credits awarded to players in accordance with legislative rules promulgated by the commission;
(10) Enter into contracts with limited video lottery retailers to provide for the maintenance and repair of video lottery terminals and associated equipment, and to provide for the placement of video lottery terminals pursuant to the provisions of this article;
(11) Conduct no video lottery advertising and promotional activities;
(12) Install, post and display prominently within or about the approved location signs, redemption information and other material as required by the commission;
(13) Maintain general liability insurance coverage for all video lottery terminals in an amount of at least one million dollars per claim;
(14) Promptly notify the commission in writing of any breaks or tears to any logic unit seals;
(15) Assume liability for all amounts due to the commission in connection with any money lost or stolen from any video lottery terminal; and
(16) Comply with all applicable provisions of this article and rules and orders of the commission.
§29-22B-706. Additional duties of service technicians.
In addition to the general duties imposed on all licensees in section 22B-701 of this article, a service technician shall:
(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 in writing of any electronic or mechanical video lottery terminal malfunctions; and
(4) Comply with all applicable provisions of this article and rules and orders of the commission.
Part 8. Approval of video lottery terminals and associated equipment.

§29-22B-801. Manufacturer seeking approval of terminal must be licensed; prohibition against placement of unapproved terminal.

(a) Only licensed manufacturers may apply to the lottery commission for approval of a video lottery terminal or associated equipment.
(b) A manufacturer may not sell or lease a video lottery terminal for placement in a licensed facility in the state unless the terminal has been approved by the lottery commission.
§29-22B-802. Testing of video lottery terminals and associated equipment.

(a) The manufacturer shall submit 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.
(b) The lottery commission may require that the manufacturer transport two working models of a video lottery terminal to the location designated by the lottery commission for testing, examination and analysis. When this is required:
(1) The manufacturer shall pay all costs of testing, examination, analysis and transportation of the 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 the terminal model. The lottery commission may require that the manufacturer provide specialized equipment or pay for the services of an independent technical expert to test the terminal; and
(2) The manufacturer shall pay the cost of transportation of two video lottery terminals to lottery headquarters. The lottery 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.
§29-22B-803. Reporting of testing results.

After each test has been completed, the commission shall provide the terminal manufacturer with a report containing findings, 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.
Part 9. Video lottery hardware and software.

§29-22B-901. Hardware specifications.
Video lottery terminals licensed for placement in this state must meet the hardware specifications set forth in this part 9.
§29-22B-902. Control of electrical power.
(a) 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 ninety 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.
(b) An on/off switch that 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.
(c) The operation of each video lottery terminal may not be adversely affected by any static discharge or other electromagnetic interference.
§29-22B-903. Coin or bill acceptors.
(a) A minimum of one electronic or mechanical coin acceptor or other means by which to accurately and efficiently establish credits must 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.
(b) The lottery commission shall approve all coin and bill acceptors prior to use on any video lottery terminal in this state.
(c) A video lottery terminal shall not allow more than two dollars to be wagered on a single game.
§29-22B-904. Security; access to the interior of video lottery terminals.

(a) Access to the interior of video lottery terminals shall be controlled through a series of locks and seals.
(b) The main logic boards and all erasable programmable read-only memory chips (EPROMS) are considered to be owned by the lottery commission and shall be located in a separate locked and sealed area within the video lottery terminal.
(c) The cash compartment shall be located in a separate locked area within or attached to the video lottery terminal.
(d) 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.
(e) All video lottery terminals shall have a security system which will temporarily disable the gaming function of the terminal while opened.
§29-22B-905. Printing mechanism.
Each video lottery terminal must contain a single printing mechanism capable of printing an original ticket and retaining 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 lottery commission. The following information must be recorded on the ticket when credits accrued on a video lottery terminal are redeemed for cash:
(1) The number of credits accrued;
(2) The value of the credits in dollars and cents displayed in both numeric and written form;
(3) The time of day and date;
(4) The validation number; and
(5) Any other information required by the commission.
§29-22B-906. Identification plate.
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:
(1) The manufacturer of the video lottery terminal;
(2) The serial number of the terminal; and
(3) The model number of the terminal.
§29-22B-907. Display of information on terminal face or screen.
All information required by this section must be displayed under glass or another transparent substance.
(1) 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 that are incomplete, confusing, misleading or inconsistent with game rules approved by the commission.
(2) 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.
(3) No stickers or other removable devices shall be placed on the video lottery terminal screen or face without the prior written approval of the commission.
(4) A label prominently displaying information on how to locate and contact persons or organizations available for help, assistance or treatment for persons who may have a gambling addiction, together with the telephone number "1-800-GAMBLER."
§29-22B-908. Communication with central computer system.
Communication equipment and devices shall be installed to enable each video lottery terminal to communicate with the lottery commission's central computer system. The commission shall provide to licensed manufacturers, or applicants applying for a manufacturer's license, 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.
§29-22B-909. Random number generator required.
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 the ninety-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; and
(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.
§29-22B-910. Payout standards.
Each video lottery terminal shall meet the following maximum and minimum theoretical percentage payout during the expected lifetime of the 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 shall be determined using standard methods of probability theory;
(2) Manufacturers shall file a request and receive written approval from the commission prior to manufacturing for placement in this state video lottery games programmed for a payout greater than ninety-two percent of the amount wagered. Commission approval shall be obtained prior to applying for testing of the high payout terminals; and
(3) Each game shall have a probability greater than one in seventeen million of obtaining the maximum payout for each play.
§29-22B-911. Continuation of current game after malfunction.
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 limited video lottery retailer shall return the current wager and all credits appearing on the video lottery terminal screen prior to the malfunction to the player.
§29-22B-912. Electronic accounting required.
(a) 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) The number of coins inserted by players or the coin equivalent if a bill acceptor is being used;
(2) The number of credits wagered;
(3) The number of credits won;
(4) The number of credits paid out by a printed ticket;
(5) The number of times the logic area was accessed;
(6) The number of times the cash door was accessed;
(7) The number of credits wagered in the current game;
(8) The number of credits won in the last complete video lottery game; and
(9) The number of cumulative credits representing money inserted by a player and credits for video lottery games won but not collected.
(b) No video lottery terminal may have any mechanism that would allow 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, the limited video lottery retailer shall record all meter readings in the presence of a commission employee.
Part 10. Conditions for Sale or Lease of Video Lottery Terminals.

§29-22B-1001. Manufacturer must be licensed.
A manufacturer of video lottery terminals may not sell or lease video lottery terminals to any person for use in this state unless the manufacturer possesses a current manufacturer's license issued by the lottery commission as provided in this article.
§29-22B-1002. Manufacturers may sell or lease only to operators.
A licensed manufacturer of video lottery terminals may only sell or lease video lottery terminals for use in this state to a person who possesses at the time of delivery a valid permit to own or lease one or more video lottery terminals and a valid operator's license issued by the lottery commission as provided in this article.
§29-22B-1003. Terminals must be approved.
A licensed manufacturer may not sell or lease a video lottery terminal for placement by an operator in this state unless the terminal has been approved by the lottery commission as provided in this article.
§29-22B-1004. Purchase or lease by operators.
Licensed operators may only purchase or lease video lottery terminals placed in use in this state from a licensed manufacturer.
Part 11. Permits to Own or Lease and Operate Video Lottery Terminals.

§29-22B-1101. Limitation on number and location of video lottery terminals.
The lottery commission may not authorize the placement of more than nine thousand video lottery terminals in limited video lottery facilities in this state. No person may directly or indirectly operate more than five percent of the number of video lottery terminals authorized in this section, which shall be located only in restricted access adult-only facilities.
§29-22B-1102. Permits and licenses to operate video lottery terminals; expiration date; annual fee to be paid by May 1st.
(a) The lottery commission shall establish forms for an operator's permit to own or lease and operate video lottery terminals and a limited video lottery retailer's license that allows the holder to own or lease video lottery terminals from a licensed manufacturer and to operate them on the premise for which the license was issued. The number of video lottery terminals that a person may own or lease or have on a limited video lottery retailer premises shall be stated the license or permit issued by the commission as provided in this article.
(b) Expiration of license and permits. - All license and permits issued by the commission allowing the holder to own or lease video lottery terminals from a manufacturer shall expire on the first day of May each year unless by that date the holder has paid to the lottery commission the annual fee for each video lottery terminal the holder is authorized to operate and the holder remains qualified to hold the license or permit and operate the number of video lottery terminals specified in the license or permit.
§29-22B-1103. Reservation of authority to operate video lottery terminals.
(a)(1) On and after the effective date of this article, every operator who wants to own or lease and operate video lottery terminals in a private club licensed as provided in article 60-7-1 et seq. of this code on or before the first day of January, 2001, or in a premises for which a class "A" nonintoxicating beer license was issued as provided in article 11-16-1 et seq. of this code on or before the first day of January, 2001, shall file an application to be licensed as an operator under this article.
(2) On or before the first day of August, 2001, every person who held on the first day of January, 2001, a private club license issued as provided in article 60-7-1 et seq. of this code, or a class "A" nonintoxicating beer license issued as provided in article 11-16-1 et seq. of this code, and wants to offer video lottery terminals, as defined in this article, for the enjoyment of the licensee's customers after the effective date of this article shall file an application to be licensed as a limited video lottery retailer under this article.
(b) The applications described is subsection (a) of this section shall be in the form prescribed by the lottery commission, be signed by the applicant or a person authorized to sign an application filed for a person who is not an individual, and provided all of the information requested by the lottery commission. The commission shall not consider any application that is incomplete in any material respect and the incomplete application shall be returned to the applicant for completion and refiling. An incomplete application submitted for a limited video lottery retailer's license shall be returned to the applicant for completion and refiling by the first day of August, 2001.
(c) Applications for a limited video lottery retailer's license -- (1)An application for a limited video lottery retailer's license shall state the number of video lottery terminals to be located on the premise of the applicant. The application shall be subject to the following:
(A) A fraternal society or veteran's organization that is (A) a fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended, (B) a domestic fraternal society that is exempt from federal income tax under section 501(c)(10), or (C) a veterans' organization that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code may own and operate on its premises not more than ten video lottery terminals; and
(B) A person who holds two or more limited lottery retailer's licenses may have on the premises for which the licenses are issued no more than an average of five terminals at those locations: Provided, That each location has at least one video lottery terminal. No other holder of a private club license or class A nonintoxicating beer license may own and operate on its premises more than five video lottery terminals.
(2) The applicant for the limited video lottery retailer license shall establish to the satisfaction of the lottery commission that the applicant had on its premises on the thirty- first day of December, 2000, coin-operate nonpayout machines with a free play feature at least equal to the number of video lottery terminals stated in the application for a limited video lottery retailer's license. The applicant shall identify the make, model and serial number of each such coin operated amusement devices and provide clear convincing evidence of three of the following:
(A) that personal property taxes were timely paid on the coin- operated nonpayout machines with a free play feature for the property tax year ending the thirty-first day of December, 2000;
(B) that consumers sales and services taxes were timely paid on the income of the coin-operated nonpayout machines with a free play feature;
(C) that municipal business and occupation taxes were timely paid on the income of the coin-operated nonpayout machines with a free play feature for the calendar year ending the thirty-first day of December, 2000, if the machines were located in a municipality that imposes a municipal business and occupation tax on that activity. If the applicant files annual municipal business and occupation tax returns on a basis other than a calendar year, the proof submitted shall be for the most recently completed fiscal year of the applicant;
(D) that municipal license taxes were timely paid on the coin-operated nonpayout machines with a free play feature for the license year that began the first day of July, 2000, if the machines were located in a municipality that imposes a license tax on coin-operated machines; and
(E) that the income of coin-operated nonpayout machines with a free play feature was included in the amount reported as sales on the applicable page or schedule of the federal income tax return filed by the applicant for the calendar year ending the thirty-first day of December, 2000. If the applicant keeps its books and records on a basis other than the calendar year, the proof shall be submitted for the most recently completed fiscal year of the applicant.
(3) The number of video lottery terminals a limited video lottery retail licensee is authorized to have on its premises shall be stated in the limited video lottery license issued to the licensee. Once the license is issued, the retail licensee may purchase or lease the number of video lottery terminals authorized in the license.
(4) Annual permit fee. - For the privilege of holding a limited lottery retailer license that authorized the licensee to own or lease video lottery terminals from a licensed manufacturer, the person shall pay an annual fee of one thousand dollars per video lottery terminal for which the license is issued. This fee shall initially be paid at the time the license is issued and shall thereafter be due and payable each first day of May while the person holds the a limited lottery retailer license that authorizes the retailer to own or lease video lottery terminals from a licensed manufacturer. In no event may a limited lottery retailer license be issued after October 31, 2001.
§29-22B-1104. Operator permit.
(a) An operator who holds a permit issued under this section shall be allowed to operate the number of video lottery terminals specified in the permit. All video lottery terminals shall be placed restricted access adult-only facilities on premises of persons who (1) hold limited retail lottery licenses issued under this article and who hold a private club license issued under article 60-7-1 of this code or a class "A" nonintoxicating beer license issued under article 11-16-1 et seq. of this code.
(b) After the thirtieth day of September, 2001, a person who is licensed as operator of video lottery terminals as provided in this article may apply to the lottery commission for a permit to operate the number of video lottery terminals set forth in the application. Attached to the application shall be a true copy of all contracts the applicant has entered into with persons who hold a limited video lottery retailer's license issued under this article for placement of video lottery terminals in the premises of the retailer.
(c) No more than five video lottery terminals may be located on the premise for which a limited lottery retailer's license has been issued under this article, except that when the holder of an operator's permit supplies video lottery terminals to a person that holds a private club license issued under article 60-71 et seq. of this code or a class "A" nonintoxicating beer license issued under article 11-16-1 et seq. of this code and the person is (1) a fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended, (2) a domestic fraternal society that is exempt from federal income tax under section 501(c)(10), or (3) a veterans' organization that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code, then the number of video lottery terminals in the premises of a tax exempt fraternal or veteran organization holds a private club liquor license or a class "A" nonintoxicating beer license may exceed five per location as long as the average number of terminals the operator has per location does not exceed five and the number of video lottery terminals at the location of the tax exempt fraternal or veteran's organization does not exceed ten.
(d) The contract between the operator and the limited video lottery retail shall be in writing and be signed by the parties, or their duly authorized representative when the party is a person who is not an individual.
(e) Application for supplemental permit. - After an operator has filed an application for a permit to operate a specific number of video lottery terminals, the operator may apply for authorization to operate additional video lottery terminals by submitting to the lottery commission a supplemental application for a permit to operate the additional number of video lottery terminals set forth in the supplemental application. Attached to the supplemental application shall be a true copy of all contracts the applicant has entered into with persons who hold a limited video lottery retailer's license issued under this article for placement of the video lottery terminals for which supplemental authorization is requested.
(f) The contract between the operator and the limited video lottery retail shall be in writing and be signed by the parties, or their duly authorized representative when the party is a person who is not an individual.
(g) Annual permit fee. - For the privilege of holding a operator's permit, the person shall pay an annual fee of one thousand dollars per video lottery terminal for which the permit is issued. This fee shall initially be paid at the time application for the permit is filed with the commission and shall thereafter be due and payable each first day of May while the person holds the operator's permit.
§29-22B-1105. Delivery and receipt of applications.
(a) Delivery of applications. - (1) An application for a limited video lottery retailer's license and an application for an operator's permit or a supplemental application for an amended permit may be delivered to the state lottery office when the office is open between the hours of 8:30 a.m. and 4:30 p.m. Monday through Friday, except when the office is closed because the day or a portion thereof is a legal holiday as provided in section 2-2-1 of this code.
(2) An application delivered by the United States postal service or by any other means of delivery shall not be deemed to have been filed with the lottery commission until after the application is physically received in the state lottery office and the application has been date and time stamped by an employee of the lottery commission.
§29-22B-1106. Allocation of video lottery terminals to operators.
The number of video lottery terminals that an operator shall be allowed to own and operate shall be determined by the signed contracts the operator enters into with one or more licensed video lottery retailers. A licensed operator may only place at the premises of a licensed video lottery retailer the number of video lottery terminals authorized in the retailer's license.
§29-22B-1107. Reduction of video lottery terminals authorized in a retailer's license.
If after a limited video lottery license is issued or an operator's permit is issued, an retailer surrenders the license in whole or in part, or the license is modified, revoked or canceled by operation of law, the lottery commission shall then allocate authorizations to operate those video lottery terminals as provided in section 1108 of this article, subject to the limitations and requirements of this article.
§29-22B-1107.1. Reduction of gambling.
Each video approved gambling operation shall conspicuously post and disseminate the telephone numbers of state approved providers of problem gambling information, treatment and referral support services and further conspicuously post the following: "CAUTION Gambling and playing this machine can be hazardous to your health, your finances, and your future."
§29-22B-1108. Allocation of permits before and after November 1, 2001.
(a) Initial Allocation.-On or before the first day of August, 2001, every person who held on the first day of January, 2001, a private club license issued as provided in article 60-7-1 et seq. of this code, or a class "A" nonintoxicating beer license issued as provided in article 11-16-1 et seq. of this code, that wants to be offered video lottery terminals, as defined in this article, for the enjoyment of the licensee's customers after the effective date of this article shall file an application to be licensed as a limited video lottery retailer under this article.
(b) There may be no placement of video lottery terminals on the premises of an applicant for a limited video lottery retailer's license until after the lottery commission determines that the applicant is qualified to be issued the license. When an applicant for a limited video lottery retailer's license submits the information required by this section, the commission shall reserve in the name of the applicant authorization to have on its premises the number of video lottery terminals requested in the application or three video lottery terminals, whichever is less, except that when the applicant is a fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended, a domestic fraternal society that is exempt from federal income tax under section 501(c)(10), or a veterans' organization that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code, the commission shall reserve authorization to have in its premises the number of video lottery terminals state in the application or ten, whichever is less.
(c) After the initial round of authorizations is completed as provided in this section, if any of the 9000 video lottery terminals have not been reserved, the remainder shall be allocated as follows. The commission shall identify the applications submitted by qualified applicants that requested reservation of five or less terminals but more than three video lottery terminals and in the case of an applicant who is a tax exempt fraternal society or veterans organization, the applicant who requested reservation of less than ten video lottery terminals. Next, the commission shall determine when the applicant first received a private club license issued under article 60-7-1 et seq. of this code or a class "A" nonintoxicating beer license issued under article 11-16-1 et seq. of this code. Beginning with the applicant with the earliest date of issue of either a private club license or a class "A" nonintoxicating beer license and proceeding to the youngest date of issuance, the commission shall reserve authorizations for the number of video lottery terminals requested in the application is excess of three authorizations: Provided, That in no event may the total number of authorizations for an applicant exceed five video lottery terminals per location except that when the applicant is a tax exempt fraternal society or veteran's organization, the total number of video lottery terminals authorized for the location may not exceed ten. In the event that two or more applicants for a limited video lottery retailer's license have the same date of issuance of a private club or class "A" nonintoxicating beer license, and insufficient authorization remains to fill all of the requests, the authorizations shall be allocated among these applicants based upon the date the applications were received in the state lottery office, proceeding from first to last. In the event, any of the remaining authorizations may not be awarded in this manner, these remaining authorizations shall be awarded by lot conducted in accordance with rules promulgated by the lottery as provided in article 29A-3-1 et seq.
(d) The number of video lottery terminals a limited video lottery retail licensee is authorized to have on its premises shall be stated in the limited video lottery license issued to the licensee. Once the license is issued, the retail licensee may purchase or lease the number of video lottery terminals authorized in the license, or enter into a contract with a licensed operator to supply them.
(e) After January 1, 2002, any available limited video retail licenses will be allocated according to subsection (c) of this section. Allocation may be made to any existing holders of a private club license issued as provided in article 60-7-1 et seq. of this code, or a class "A" nonintoxicating beer license issued as provided in article 11-16-1 et seq. of this code who satisfy all requirements of this article and obtain a limited video lottery retail license in the manner described in this article.
§29-22B-1109. Operation of authorized video lottery terminals; forfeiture of authorization for failure to operate.
(a) A person who holds a permit or license to operate video lottery terminals shall place the video lottery terminals authorized by the license or permit in operation within six months after receiving the license or permit in which the terminals are first authorized.
(b) After a video lottery terminal is connected to the commission's central site system of monitoring lottery terminals, the terminal may not be off-line for more than sixty consecutive days, unless the terminal is off-line due to fire, flood, or other act beyond the control of the operator. If the terminal is off-line due to fire, flood, or other act beyond the control of the operator, the terminal shall be reconnected to the commission's central site by the date ordered by the commission. The commission shall propose a legislative rule for promulgation in accordance with the provisions of article 29A-3-1, et seq., of this code, defining the term "other act beyond the control of the operator" and providing for application of this subsection (b).
(c) Except as otherwise provided in this section, authorization to operate a video lottery terminal that is not connected to the commission's central site system of monitoring lottery terminals shall be forfeited to the commission on the first day after expiration of the applicable period specified in this subsection (a) or (b) of this section.
Part 12. Placement and transportation of Video Lottery Terminals.

§29-22B-1201. Placement of video lottery terminals.
(a) Video lottery terminals allowed by this article may be placed only in licensed limited video lottery locations approved by the commission.
(b) All video lottery terminals in approved locations shall be physically located as follows:
(1) The video lottery terminals shall be continuously monitored through the use of a closed circuit television system capable of identifying players and terminal faces and of recording activity for a continuous twenty-four hour period. All video tapes or other recording medium approved in writing by the commission shall be retained for a period of at least sixty days and be available for viewing by an authorized representative of the commission or the commissioner of alcohol beverage control. The cost of monitoring shall be paid by the limited video lottery retailer;
(2) Access to video lottery terminal locations shall be restricted to persons legally entitled by age to play video lottery games;
(3) The operator 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 location; and
(4) No video lottery terminal may be relocated without prior written approval from the commission.
(c) Personnel of the limited video lottery retailer shall be present during all hours of operation at each video lottery terminal location. These personnel shall make periodic inspections of the restricted access adult-only facility in order to provide for the safe and approved operation of the video lottery terminals and the safety and well-being of the players.
(d) Security personnel of the commission and investigators of the alcohol beverage control commissioner shall have unrestricted access to video lottery terminal locations.
(e) Notwithstanding any other provision of this article to the contrary, the commission may not approve the placement of a video lottery terminal in a state park.
§29-22B-1202. No limited video lottery retailer license for premises within 150 feet of another licensed premises; no two license retailer locations within a common structure.

(a) A limited video lottery retailer license may not be granted for operation of video lottery terminals on a premises if, at the time of application for the license, the applicant's premises are within one hundred fifty feet of, or has an external structural connection not amounting to a common internal wall to, a premises that already has a license for video lottery terminals and if the two premises have one or more common owners.
(1) A measurement of the distance between two premises must be taken between the nearest exterior wall of each premises.
(2) When determining common ownership, the commission shall consider direct as well as indirect ownership.
(b) A premises for which a private club license to dispense alcoholic liquors, under provisions of article seven, chapter sixty of this code, or a Class A nonintoxicating beer license, under the provisions of article sixteen, chapter eleven of this code, was granted, was applied for, or the transfer of which was validly contracted for prior to the first day of January, two thousand one, is not subject to subsection (a) of this section.
(c) No more than one restricted access adult-only facility shall hold a limited video lottery retailer license to operate video lottery terminals in any single structure under one roof.
§29-22B-1203. Registration decals.
(a) Each video lottery terminal placed in operation in this state shall have a commission registration decal permanently affixed, with a video lottery terminal registration control number placed on the video lottery terminal.
(b) 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.
(c) No terminal shall be transported out of this state until authorized commission personnel have removed the commission registration control number, except when the transportation of the terminal both begins and ends in this state.
§29-22B-1204. Installation of approved lottery terminals.
(a) The video lottery terminal manufacturer and licensed operator are jointly responsible for the assembly and installation of all video lottery terminals and associated equipment.
(b) The manufacturer and licensed operator may 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.
(c) The request for modification shall contain a detailed description of the type of change, the reasons for the change and technical documentation of the change.
(d) Each video lottery terminal approved for placement at a licensed location shall conform to the exact specifications of the video lottery terminal prototype tested and approved by the commission.
(e) 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 operator, the video lottery terminal shall be prima facie determined to be contraband. The commission or any law- enforcement officer having jurisdiction shall seize and destroy all of the licensed operator's and manufacturer's noncomplying video lottery terminals, as provided in part 18 of this article.
(f) In addition, the commission shall suspend the licenses of the licensed operator and the licensed manufacturer for the period of time the commission considers to be appropriate under the circumstances and may impose a civil penalty, as provided in part 16 of this article.
§29-22B-1205. Transportation from manufacturer and registration of video lottery terminals.

(a) A manufacturer transporting or arranging for the transportation of 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 and address 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 operator to which the video lottery terminals are being sent and the destination of the terminals if different from the address of the operator;
(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.
(b) An operator that 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 and address of the limited video lottery retailer who will receive the video lottery terminal;
(2) The full name and address 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 date and time of video lottery terminal arrival; and
(6) The expected date and time of video lottery terminal installation.
(c) If a video lottery terminal is not placed in operation, the operator shall notify the commission in writing of the location where the terminal is stored.
§29-22B-1206. Any other transportation of video lottery terminals.
(a) Any person transporting a video lottery terminal from one location to another in this state, other than for repair or servicing 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 and address of the person or entity transporting the video lottery terminal;
(2) The reason for transporting the video lottery terminal;
(3) The full name and address 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.
(b) 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 and address 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.
Part 13. Maintenance and repair of Video Lottery Terminals.

§29-22B-1301. Maintenance of video lottery terminals.
(a) No video lottery terminal may be placed in operation in this state until the manufacturer provides training in the service and repair of each approved video lottery terminal model and service technicians complete the training.
(b) Manufacturers shall 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.
(c) Manufacturers shall notify all licensed operators who have purchased or leased that manufacturer's video lottery terminals of all scheduled training programs.
(d) The manufacturers shall schedule training programs at convenient locations within this state to facilitate attendance by service technicians.
(e) Manufacturers shall inform licensed operators of any new developments in the service and repair of video lottery terminals and provide appropriate subsequent training programs.
(f) The manufacturers shall issue a training certificate to each person upon successful completion of a video lottery training program.
(g) The certificate shall include the name of the person who completed the training program and the date and the location of the training program.
(h) A person who successfully completes training is eligible for a service technician's license.
(i) No person may conduct maintenance (other than clearing paper ticket jams or clearing coin and bill acceptor jams) on any video lottery terminal or associated equipment unless the commission has issued a service technician license to that person.
(j) 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.
§29-22B-1302. Maintenance log.
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 shall 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 operators 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.
§29-22B-1303. Master keys.
Operators shall provide the commission with a master key for access into the main cabinet door of each video lottery terminal placed in operation. The commission shall provide a logic box seal. The seal shall be affixed by commission personnel to prevent unauthorized access to the video lottery terminal logic unit.
§29-22B-1304. Repairs to logic board or circuitry.
(a) No repairs to, or replacement of, the logic board or circuitry within the logic area shall occur unless authorized commission personnel are present and observe the repairs or replacement.
(b) The logic area seal shall not be broken by anyone other than authorized commission personnel.
(c) 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.
(d) The commission shall test the software EPROMS on the logic board of each video lottery terminal prior to sealing the logic area.
(e) License holders shall promptly notify the commission in writing of any discovered damage, tears or breaks in the logic area seal. This written notification shall be delivered electronically or by telephone facsimile machine whenever possible. Upon receipt of that notice, the commission shall disable the video lottery terminal. The video lottery terminal shall remain disabled until completion by the commission of an investigation of the seal damage.
Part 14. Net Terminal Income and Distribution of Revenues.

§29-22B-1401. Accounting for the state's share of gross terminal income.
(a) The gross terminal income from all operating video lottery terminals of an operator licensee shall be calculated periodically by the commission.
(b) Each licensed operator shall maintain in its bank account an amount equal to or greater than the lottery commission's share of the gross terminal income from its operation of video lottery machines, to be electronically transferred by the lottery commission on dates established by the commission.
(c) Upon a licensed operator's failure to maintain the bank account balance required in subsection (b) of this section, the commission may disable all of a licensed operator's video lottery terminals until full payment of all amounts due is made.
(d) Interest shall accrue on any unpaid balance due the commission at the rates charged for state income tax delinquency under chapter eleven of this code. The interest shall begin to accrue on the date payment is due to the commission and shall continue to accrue until the amount due, including applicable interest, is paid. Payments shall be applied first to interest and then to the balance of the amount due the commission.
§29-22B-1402. Resolution of discrepancies.
(a) The commission's central control computer shall keep accurate records of all income generated by each video lottery terminal. The commission shall prepare and send to the licensed operator a statement by mail, facsimile or internet e-mail reflecting the gross terminal income generated by the licensee's video lottery terminals. Each licensed operator shall report to the commission any discrepancies between the commission's statement and each terminal's mechanical and electronic meter readings.
(b) The licensed operator is solely responsible for resolving income discrepancies between actual money collected and the amount shown on the accounting meters or on the commission's billing statement.
(c) The licensed operator is solely responsible for paying the negotiated share of net terminal income, to each limited video lottery retailer to whom it has supplied video lottery terminals under the provisions of this article.
(d) Each limited video lottery retailer's periodic distribution from the appropriate operator shall be paid by check or by electronic funds transfer to the limited video lottery retailer's designated bank account.
(e) Until an accounting discrepancy is resolved in favor of the licensed operator, the commission may make no credit adjustments.
(f) For any video lottery terminal reflecting a discrepancy, the licensed operator 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.
(g) If the meter readings and the commission's records cannot be reconciled, final disposition of the matter shall be determined by the commission.
(h) Any accounting discrepancies that cannot be otherwise resolved shall be resolved in favor of the commission.
§29-22B-1403. Payover of state's share of gross terminal income.
(a) The commission shall periodically transfer from each licensed operator's bank account described in subsection 22B- 1401(b) the state's share of gross terminal income as calculated under section 22B-1408.
(b) Licensed operators shall remit payment by mail if the electronic transfer of funds is not operational or the commission notifies licensed operators that remittance by this method is required.
(c) The licensed operators shall report an amount equal to the total amount of cash inserted into each video lottery terminal operated by a licensee, minus the total value of game credits which are cleared from the video lottery terminal in exchange for winning redemption tickets, and remit the state's share of the amount 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.
(d) Licensed operators 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.
§29-22B-1404. Operators to furnish bank authorizations.
(a) Each licensed operator shall furnish to the commission all information and bank authorizations required to facilitate the timely transfer of moneys to the commission and from the commission to each licensed operator.
(b) Each licensed operator shall provide the commission thirty days' advance notice of any proposed account changes in order to assure the uninterrupted electronic transfer of funds.
§29-22B-1405. State's share of gross terminal income held in trust.
The amount of gross terminal income required to be paid over to the commission, shall be deemed to be moneys held in trust for the state of West Virginia while in the possession or constructive possession of any operator or limited video lottery retailer and until the state's share of gross terminal income is paid over to the commission.
§29-22B-1406. Examination of operator books and records.
The commission has the right to examine all accounts, bank accounts, financial statements and records in a licensed operator's possession, under its control or in which it has an interest and the licensed operator shall 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.
§29-22B-1407. Civil penalty for failure to pay over state's share of gross terminal income.

(a) Any person required by law or contract to collect, truthfully account for, and pay over any of the state's share of gross terminal income who willfully fails to truthfully account for and pay over the net terminal income, or willfully attempts in any manner to evade or defeat any payment thereof, shall, in addition to other penalties provided by law, be liable for payment of a civil money penalty equal to the total amount of the state's share of gross terminal income not paid over to the commission.
(b)(1) No penalty may be imposed under subsection (a) unless the director notifies the operator in writing, delivered in person or by mail sent to the last known address of the operator or limited video lottery retailer, that he or she is subject to an assessment of this penalty.
(2) The mailing of the notice described in subdivision (1) (or, in the case of notice delivered in person, the delivery) shall precede any notice and demand for payment of any penalty under subsection (a)of this section, by at least sixty days.
(3) If a notice described in subdivision (1) of this subsection (b) with respect to any penalty is mailed or delivered in person before the expiration of the three-year period for the assessment of the penalty (determined without regard to this subdivision), the three-year period provided for the assessment of a penalty shall not expire before the later of:
(A) The date ninety days after the date on which such notice was mailed, or delivered in person, or
(B) If there is a timely protest of the proposed assessment, the date thirty days after the director makes a final administrative determination with respect to the protest.
(4) The requirement that preliminary notice be given shall not apply if the director finds that the collection of the penalty is in jeopardy.
(c) This penalty may be collected by civil action instituted within three years after the date the amount of net terminal income not paid over to the commission should have been paid over to the commission, except as provided in subsection (b) of this section.
(d) If more than one person is liable for the penalty under subsection (a) with respect to any payment of net terminal income, each person who paid the penalty shall be entitled to recover from other persons who are liable for the penalty an amount equal to the excess of the amount paid by the person over that person's proportionate share of the penalty. Any claim for such a recovery may be made only in a proceeding which is separate from, and is not joined or consolidated with, an action for collection of such penalty brought by the state of West Virginia.
(e) No penalty shall be imposed by subsection (a) on any unpaid, volunteer member of any board of trustees or directors of an organization exempt from tax under section 501 of the Internal Revenue Code of 1986, as amended, if such member:
(1) Is solely serving in an honorary capacity;
(2) Does not participate in the day-to-day or financial operations of the organization; and
(3) Does not have actual knowledge of the failure on which the penalty is imposed.
This subsection (e) shall not apply if it results in no person being liable for the penalty imposed by subsection (a) of this section.
§29-22B-1408. Distribution of state's share of gross terminal income.
(a) The state's share of gross terminal income is calculated as follows:
(1) The commission shall deposit two percent of gross terminal income into the state lottery fund for the commission's costs and expenses incurred in administering this article. From this amount, not less than one hundred fifty thousand dollars nor more than one million dollars per fiscal year, as determined by the commission each year, shall be transferred to the compulsive gambling treatment fund created in section 29-22A-19 of this chapter. In the event that the percentage allotted under this subsection for the commission's costs and expenses incurred in administering this article generates a surplus, the surplus shall be allowed to accumulate to an amount not to exceed two hundred fifty thousand dollars. On a monthly basis, the director shall report to the joint committee on government and finance of the Legislature any surplus in excess of two hundred fifty thousand dollars and remit to the state treasurer the entire amount of those surplus funds in excess of two hundred fifty thousand dollars to be deposited in the fiscal enhancement fund established in section 22B-1409;
(2) Gross profits are determined by deducting, from the balance of gross terminal income remaining after deduction of the percentage described in subdivision (1) of this subsection, the percentage described in subdivision (3) of this subsection.
(3) Net terminal income is the percentage of gross profits prescribed in this section. The commission shall deposit thirty percent of gross profits as provided in subdivision (2) of this subsection. Beginning on the first day of June, two thousand two, and the first day of June of each year thereafter, the commission shall calculate the aggregate average daily gross terminal income for all operating video lottery terminal during the preceding six month period. So long as the aggregate average gross terminal income per day for the operating video lottery terminals does not exceed sixty dollars, the commission's share of gross profits shall continue to be thirty percent for the succeeding fiscal year beginning the first day of July. Beginning on the first day of July, two thousand two and the first day of July in each year thereafter, if the commission's calculation of aggregate average daily gross terminal income per video lottery terminal yields an amount greater than sixty dollars, one of the following schedules will apply: If the amount is greater than sixty dollars per day but not greater than eighty dollars per day, the commission's share of gross profits for the ensuing fiscal year beginning the first day of July shall be thirty-four percent; if the amount is greater than eighty dollars per day but not greater than one hundred dollars per day, the commission's share of gross profits for the ensuing fiscal year beginning the first day of July shall be thirty-eight percent; if the amount is greater than one hundred dollars per day, the commission's share of gross profits for the ensuing fiscal year beginning the first day of July shall be forty-two percent.
(b) Net terminal income shall be distributed by the commission as follows:
(1)(A) Beginning July 1, 2002, a county and the incorporated municipalities within that county shall receive two percent of the net terminal income generated by limited video lottery terminals located within the county;
(B) From this two percent of net terminal income, each municipality shall receive a share that bears the same proportion to the total two percent of net terminal income as the population of the municipality bears to the total population of the county as determined by the most recent decennial United States census of population, and the county shall receive the remaining portion of the two percent of net terminal income; and

(3) Any remaining funds shall be deposited into the state tax revenue economic enhancement trust established in section 22B-1409.
(c) The licensed operators shall receive the balance of gross terminal income remaining after deduction of the state's share as calculated pursuant to this section.
§29-22B-1409. Establishment of state tax revenue economic enhancement trust; purposes.
(a) There is hereby established in the office of the treasurer a special revenue account designated the "state tax revenue economic enhancement trust". All revenues, including but not limited to taxes, license fees, civil penalties and other monies collected by the commission pursuant to the provisions of this article, except the amounts due the commission under 22B- 1408(a)(1), shall be deposited in the account.
(b) During fiscal year 2002 and until June 30, 2002, the monies of the fund shall be used for the purpose of subsidizing salary increases and associated employee benefits effective January 1, 2002, including but not limited to the salary increase for teachers provided in 18A-4-1, et seq., by enactment of the Legislature in 2001, the salary increase for members of the state police provided in 15-2-5 by enactment of the Legislature in 2001, and general salary increases for state employees: Provided, That effective January 1, 2002, the full year salary increases for state employees other than correctional officers and members of the state police equal $756; and that the full year salary increases for correctional officers equal $2000. Until June 30, 2002, the director of the finance division of the department of administration is hereby authorized and empowered to transfer the monies of the account to such accounts or funds within the treasury of the state as may be necessary as may be directed by the governor to provide sufficient funding for the salary increases described in this subsection. Beginning July 1, 2002 and thereafter, the authority and power of the director granted by this subsection is terminated.
(c) On July 1, 2002, and thereafter, the monies of the state tax revenue economic enhancement trust account shall be expended pursuant to appropriations of the Legislature.
Part 15. Appeal of Order of the Commission.

§29-22B-1501. Appeal of order.
(a) Any applicant or license holder adversely affected by an order issued under this article has the right to a hearing on the order 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 the applicant, or license holder.
(b) A petition for hearing shall be served on the commission by delivery in person at the primary office of the commission or by certified mail. By procedural rule, the commission may allow other methods of service.
(c) 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 any other order of the commission with respect to which a hearing is being demanded.
(d) The commission shall set a date for any hearing demanded and notify the person demanding the hearing not later than ten days before the hearing date of the date, time and place of the hearing. The hearing shall be held within thirty days after receipt of the petition.
§29-22B-1502. Contents of petition for hearing; security.
(a) A petition for a hearing shall be in writing and shall include an original and one copy. The petition shall 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 suspending or revoking a license, 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; and
(5) Verification by the petitioner.
(b) 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 a certified check, cashier's check or money order, which shall accompany the petition demanding a hearing.
§29-22B-1503. Hearing procedures.
(a) Hearings held under this article shall be subject to the provisions of article 29A-5-1, et seq., of this code except to the extent otherwise provided in this article. In case of any conflict, the provisions of this article shall control.
(b) In all hearings held under this article, oral and documentary evidence may be required through the use of subpoenas and subpoenas duces tecum. The 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 shall 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 acknowledgment 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 is the responsibility of the commission, but any party requesting issuance is responsible for service. Any person who serves any subpoena or subpoena duces tecum is entitled to the same fee as sheriffs who serve witness subpoenas for the circuit courts 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 the fees; and
(6) Any person receiving a subpoena or subpoena duces tecum issued under this section shall honor the subpoena or subpoena duces tecum 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 in response to the 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 court or a refusal to testify in the circuit court.
(c) Hearings may not be delayed by a motion for continuance made less than seven days before the date set for the hearing.
(d) The commission may designate a hearing examiner to conduct the hearing.
(e) The petitioner may appear individually, or by legal counsel.
(f) The petitioner, or his or her 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. The waivers and agreements shall be in writing or upon the record.
(g) 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 shall be filed within ten days after the hearing date.
(h) 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.
(i) A record shall be made of all hearings held pursuant to this article. Testimony may be recorded electronically or by a court reporter.
(j) After the conclusion of the hearing and within ten days of receipt of the transcript of the hearing, 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 decision as its own, after having reviewed the transcript and all exhibits attached and affixed to the decision; if the commission rejects the decision, 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 is final unless vacated or modified upon judicial review of the decision. 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.
§29-22B-1504. Judicial review.
The applicant or license holder who filed the petition for administrative review may appeal the decision of the commission issued under section 22B-1503 to the circuit court of Kanawha County, West Virginia, if the petition for appeal is filed no later than thirty days after the date upon which the petitioner receives written notice of the final decision of the commission.
Part 16. Civil Penalties.

§29-22B-1601. Imposition of fines civil penalties by the commission.
The commission may impose the fines civil penalties provided for in this part 16. These fines civil penalties may be imposed in conjunction with one or more other fines civil penalties provided in this section and in conjunction with a license suspension or revocation or other administrative action taken against a licensee, or as a result of an action or inaction by a licensee for which the commission is also seeking criminal prosecution.
§29-22B-1602. Civil penalties applicable to limited video lottery retailers.
(a) For allowing persons under age twenty-one to play video lottery games, the limited video lottery retailer shall be fined:
(1) One hundred dollars for a first violation;
(2) One thousand dollars for a second violation; and
(3) Five thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by five thousand dollars.
(b) For allowing persons under age twenty-one to be present at a video lottery terminal or in the immediate area where video lottery terminals are present, the limited video lottery retailer may be fined:
(1) One hundred dollars for a first violation;
(2) Two hundred dollars for a second violation; and
(3) Three hundred dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by one hundred dollars.
(c) For allowing a person or persons to tamper in any way with, or disconnect, any data line or feature that allows the state's central control computer to communicate with each video lottery terminal in the premises, the limited video lottery retailer may be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by ten thousand dollars.
(d) For entering the logic area of a video lottery terminal or allowing an unauthorized person or persons to enter the logic area of a video lottery terminal, or tampering in any way with the lottery security seal, any EPROM or other chip or memory device installed in the logic area, whether or not any tampering would alter any characteristic of the video lottery terminal, the limited video lottery retailer may be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by ten thousand dollars.
(e) For failure to aim or focus a closed circuit television camera on all video lottery terminals in the premises or for failure to record all video lottery terminals during the hours of operation of the limited access adults-only facility, the limited video lottery retailer shall be fined:
(1) One hundred dollars for a first violation;
(2) One thousand dollars for a second violation; and
(3) Five thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by five thousand dollars.
§29-22B-1603. Civil penalties applicable to service technicians.
(a) For entering the logic area of any video lottery terminal at any time when a representative of the West Virginia Lottery Commission is not present and observing the process, the service technician shall be fined:
(1) One hundred dollars for a first violation;
(2) One thousand dollars for a second violation; and
(3) Three thousand dollars for a third violation.
(b) For each subsequent violation, the fine imposed by the commission shall increase by one hundred dollars. If two or more service technicians participate in violation of this section, each service technician shall be fined according to this schedule.
§29-22B-1604. Civil penalties applicable to operators.
(a) For employing or contracting with persons, other than service technicians licensed by the commission, to repair video lottery terminals, the operator shall be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by ten thousand dollars.
(b) For acquiring, or installing in licensed premises, any video lottery terminal that has not been manufactured and supplied by a licensed manufacturer, that has not also been tested and approved by the commission's independent testing laboratory, and that has not been approved for use in this state by the commission, the operator shall be fined:
(1) Five thousand dollars for a first violation;
(2) Ten thousand dollars for a second violation.
(c) For each subsequent violation, the fine imposed by the commission shall increase by ten thousand dollars.
§29-22B-1605. Civil penalties applicable to manufacturers.
(a) For shipping a video lottery terminal into this state to a person who is not licensed by the commission either as an operator under this article or a racetrack licensed under provisions of article 22A of this chapter, the manufacturer shall be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
(b) For each subsequent violation, the fine imposed by the commission shall increase by ten thousand dollars.
(c) For shipping a video lottery terminal into this state that is not identical to a video lottery terminal make and model approved by the commission, including the electronic computer components, the random number generator, the coin acceptor, the bill acceptor, and the cabinet in which the video lottery terminal is housed, the manufacturer shall be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
(d) For each subsequent violation, the fine imposed by the commission shall increase by ten thousand dollars.
§29-22B-1606. Civil penalties for failure of licensees to perform duties.

A person who fails to perform any of the duties or obligations created and imposed upon them by the provisions of this article or legislative rule of the commission is subject to a civil penalty as may be determined by the commission in an amount not to exceed ten thousand dollars.
§29-22B-1607. Civil action to collect penalty.
(a) The commission may collect any money penalty imposed pursuant to this article by instituting civil action in any court of this state having jurisdiction over the named defendant.
(b) Collection shall be barred unless the civil action is commenced within six years after the later of (1) the date on which the prohibited conduct establishing the cause of action occurred, or (2) the date on which the commission first knew or should reasonably have known the prohibited conduct had occurred.
Part 17. Criminal Offenses.

§29-22B-1701. Financial interest of director, etc.; receiving reward from interested party; criminal penalty; application of bribery statute.

(a) Neither the director of the commission, nor any member or employee of the commission, may be financially interested, or have any beneficial personal interest, direct or indirect, in any person furnishing video lottery terminals or video lottery games, or in any person who is a bidder for video lottery terminals, or who is a holder of a license issued under this article.
(b) Neither the director of the commission, nor any member or employee of the commission, may accept or receive, directly or indirectly, from any person known by the director, commission member or employee of the commission to be interested in any bid, contract or licensee under this article, by rebate, gift or otherwise, any money or other thing of value whatsoever, or any promise, obligation or contract for future reward, or compensation.
(c) A person who violates this section shall be guilty of a misdemeanor and, upon conviction thereof, shall be confined in jail not less than three months nor more than one year, or fined not less than fifty nor more than one thousand dollars, or both, in the discretion of the court: Provided, That any person who violates any of the provisions of subsection (b) of this section under circumstances constituting the crime of bribery under the provisions of section 61-5A-3 of this code, shall, upon conviction of bribery, be punished as provided in article 61-5A- 1, et seq., of this code.
§29-22B-1702. Criminal penalties for unlawful inducement.
(a) Any person who gives another person any thing of value to induce the other to refrain from bidding for a video lottery permit is guilty of a misdemeanor and, upon conviction, shall be fined not more than ten thousand dollars and, in addition, shall be subject to a civil penalty payable to the commission of five hundred thousand dollars.
(b) Any person who gives a person any thing of value to induce the other to refrain from placing a video lottery terminal at a restricted access adult-only facility is guilty of a misdemeanor and, upon conviction, shall be fined not more than ten thousand dollars and, in addition, shall be subject to a civil penalty payable to the commission of five hundred thousand dollars.
§29-22B-1703. Criminal penalty for unauthorized game on authorized video lottery terminal.

(a) A licensee who places a video lottery game on a video lottery terminal that is allowed under this article without authority of the commission to do so is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be confined in a county or regional jail for a term of not more than one year, and fined not more than five thousand dollars, except that, in the case of a person other than an individual, the amount of the fine imposed may be not more than twenty-five thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years and fined not less than five thousand dollars nor more than ten thousand dollars, except that in the case of a person other than an individual, the fine may not be less than twenty-five thousand dollars nor more than fifty thousand dollars.
§29-22B-1704. Criminal penalty for unauthorized video lottery terminal.

(a) A licensee who places a video gambling machine into play is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be confined in a county or regional jail for a term of not more than one year, and fined not less than five thousand dollars nor more than ten thousand dollars, except that, in the case of a person other than an individual, the fine may not be less than twenty thousand dollars nor more than thirty thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years and fined not less than ten thousand dollars nor more than twenty thousand dollars, except that in the case of a person other than an individual, the fine may not be less than twenty-five thousand dollars nor more than fifty thousand dollars.
§29-22B-1705. Criminal penalty for possession of video gambling machine.

(a) After December 31, 2001, any person who has a video gambling machine in their actual or constructive possession in this state is guilty of a felony and, upon conviction thereof, shall for a first conviction be confined in a state correctional facility for a term of not less than one year nor more than three years, and fined not less than fifty thousand dollars nor more than one hundred thousand dollars, for each video gambling machine in the person's actual or constructive possession in this state, except that, in the case of a person other than an individual, the fine may not be less than one hundred thousand dollars nor more than five hundred thousand dollars for each video gambling machine in the person's actual or constructive possession in this state.
(b) For any second or subsequent conviction under this section the person shall be confined in a state correctional facility for a term of not less than two years nor more than five years, and fined not less than one hundred thousand dollars nor more than five hundred thousand dollars, for each video gambling machine in their actual or constructive possession in this state, except that, in the case of a person other than an individual, the fine may not be less than five hundred thousand dollars nor more than one million dollars for each video gambling machine in the person's actual or constructive possession in this state.
§29-22B-1706. Criminal penalty for expired operator or limited video lottery retailer's license.

(a) A person who operates, carries on or exposes for play a video lottery game or video lottery terminal after the person's license has expired and prior to the actual renewal of the license is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be confined in a county or regional jail for not more than one year or fined not less than one thousand dollars nor more than five thousand dollars, except that, in the case of a person other than an individual, the amount of the fine imposed may not be less than ten thousand dollars nor more than twenty-five thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years and fined not less than ten thousand dollars nor more than twenty thousand dollars, except that in the case of a person other than an individual, the fine may not be less than twenty-five thousand dollars nor more than fifty thousand dollars.
§29-22B-1707. Criminal penalty for possession of altered or nonconforming video lottery terminal, device or related material.

(a) A person who possesses any video lottery terminal that is not a video gambling machine or possesses any other device, equipment or material which the person knows has been manufactured, distributed, sold, tampered with or serviced in violation of the provisions of this article is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be confined in a county or regional jail not more than one year and fined not less than one thousand dollars nor more than five thousand dollars, except that, in the case of a person other than an individual, the amount of the fine imposed may be not less than five thousand dollars nor more than twenty-five thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years and fined not less than five thousand dollars nor more than twenty-five thousand dollars, except that in the case of a person other than an individual, the fine may not be less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1708. Criminal penalty for tampered game, terminal, device or other equipment.

(a) A person who knowingly conducts, carries on, operates or exposes for play, or allows to be conducted, carried on, operated or exposed for play, any video lottery game, video lottery terminal or other device, equipment or material which has in any manner been tampered with or placed in a condition or operated in a manner the result of which tends to deceive the public or tends to alter the normal random selection of characteristics or the normal chance of the video lottery game which could determine or alter the result of the game is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be confined in a county or regional jail not more than one year and fined not less than one thousand dollars nor more than five thousand dollars, except that, in the case of a person other than an individual, the amount of the fine imposed may be not less than twenty-five thousand dollars nor more than fifty thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years and fined not less than five thousand dollars nor more than twenty-five thousand dollars, except that in the case of a person other than an individual, the fine may be not less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1709. Criminal penalty for deceptive practices.
(a) A person who knowingly conducts, carries on, operates or exposes for play, or allows to be conducted, carried on, operated or exposed for play, any video lottery game, video lottery terminal, data line connection with the central control computer, or other device, equipment or material which has in any manner been tampered with or placed in a condition or operated in a manner the result of which tends to deceive the state lottery commission or tends to alter the accurate recording of credits played and credits won by the commission's central control computer, or the central control computer's ability to disable and cause not to operate any or all video lottery terminals of a licensed limited video lottery retailer, for the first offense is guilty of a misdemeanor and, upon conviction thereof, shall be confined in a county or regional jail not more than one year and fined not more than five thousand dollars, except that, in the case of a person other than an individual, the amount of the fine imposed may be not more than fifty thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for at least one year but not more than five years, and fined not less than one thousand dollars nor more than five thousand dollars, except that when the person is not an individual, the amount of the fine imposed may be not less than five thousand dollars nor more than fifty thousand dollars.
§29-22B-1710. Employment of unlicensed person who is required to be licensed.

(a) A person who employs or continues to employ an individual not issued a license under the provisions of this article in a position with duties which would require a license under the provisions of this article is guilty of a misdemeanor and, upon conviction thereof, shall for a first offense be confined in a county or regional jail for not more than one year and fined not more than five thousand dollars, except that, in the case of a person other than an individual, the amount of the fine imposed may be not more than twenty-five thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years, and fined not less than five thousand dollars nor more than twenty-five thousand dollars, except that, in the case of a person other than an individual, the fine may not be less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1711. Criminal penalty for unlicensed person to work in a position for which license is required.

(a) An individual who is required by this article to obtain a license from the commission to work as a limited video lottery retailer or service technician but who works as a limited video lottery retailer or service technician without obtaining the requisite license, as provided for in this article, or is employed in a position with duties which would require a license under the provisions of this article is guilty of a misdemeanor and, upon conviction thereof, shall be confined in a county or regional jail not more than one year and fined not more than ten thousand dollars.
(b) A second and each subsequent offense under this section shall be a misdemeanor and, upon conviction thereof, the person shall be confined in a county or regional jail for a term not to exceed one year and fined not less than five thousand dollars nor more than twenty thousand dollars.
§29-22B-1712. Criminal penalty for use of device that gives player an unauthorized advantage.

(a) A person who, while a video lottery game is being played, uses, or assists another person in the use of, an electronic, electrical or mechanical device which is designed, constructed or programmed specifically for use in obtaining an advantage at playing any video lottery game is guilty of a felony and, upon conviction thereof, shall for a first offense be confined in a state correctional facility for at least one year but not more than five years, or shall be fined not less than one thousand dollars nor more than five thousand dollars, or both.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years, and fined not less than five thousand dollars nor more than twenty-five thousand dollars, except that, in the case of a person other than an individual, the fine may be not less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1713. Criminal penalty for violation of rules of play.
A person who knowingly violates a provision of this article or the rules of play or game rules of a video lottery game, and who profits thereby in an amount equal to one thousand dollars or more, is guilty of a felony and, upon conviction thereof, shall be imprisoned in the state correctional facility not less than one nor more than ten years or, in the discretion of the court, be confined in jail for not more than one year and be fined not less than two thousand dollars nor more than five thousand dollars. If the person profits thereby in an amount less than one thousand dollars, that person is guilty of a misdemeanor and, upon conviction thereof, shall be confined in a county or regional jail for a term not to exceed one year or fined an amount not less than one thousand dollars nor more than two thousand five hundred dollars, or both.
Part 18. Seizure and Destruction of Contraband; Forfeitures.

§29-22B-1801. Video gambling machines declared contraband.
Effective January 1, 2002, and thereafter, video gambling machines are per se illegal gambling devices which may be seized and destroyed as illegal contraband by any law-enforcement agency having jurisdiction over the political subdivision in which the device is found, and the owner or owners of the device have no right to compensation for the seizure and destruction of any video gambling machine: Provided, That one machine may be owned for "amusement purposes only" by an individual in the privacy of their home upon the registration and payment of a $100 license fee to the lottery commission for the machine.
§29-22B-1802. Legislative findings regarding seizure and sale of video gambling machines and other property.

The Legislature hereby finds and declares that the seizure and sale of items under the provisions of this article is not contemplated to be a forfeiture as the same is used in article 12, section 5 of the West Virginia Constitution and, to the extent that a seizure and sale may be found to be such a forfeiture, the Legislature hereby finds and declares that the proceeds from a seizure and sale under this article is not part of net proceeds as the same is contemplated by such article 12, section 5 of the West Virginia Constitution.
§29-22B-1803. Items subject to forfeiture.

(a) The following items are subject to forfeiture:
(1) Any video gambling machine present in this state after January 1, 2002;
(2) All property found with the video gambling machine that in any way facilitates its operation for any purpose;
(3) Any video lottery terminal registered under this article that is found on the premises where a video gambling machine is found;
(4) All conveyances, including aircraft, vehicles or vessels, which are used, have been used, or are intended for use, to transport, or in any manner to facilitate the transportation, sale, receipt, possession or concealment of a video gambling machine, except as follows:
(A) No conveyance used by any person as a common carrier in the transaction of business as a common carrier shall be forfeited under this section unless it appears that the person owning such conveyance is a consenting party or privy to a violation of this article;
(B) No conveyance shall be forfeited under the provisions of this article if the person owning the conveyance establishes that he or she neither knew, nor had reason to know, that the conveyance was being employed or was likely to be employed in a violation of this article; and
(C) No bona fide security interest or other valid lien in any conveyance shall be forfeited under the provisions of this article, unless the state proves by a preponderance of the evidence that the holder of such security interest or lien either knew, or had reason to know, that such conveyance was being used or was likely to be used in a violation of this article.
(5) All books, records and materials, including microfilm, tapes and data which are used, or have been used, or are intended for use with a gray gambling device;
(6) All moneys, negotiable instruments, securities or other things of value furnished or intended to be furnished in violation of this article by any person in exchange for a gray gambling device or in exchange for playing or operating a gray gambling device, all proceeds traceable to such an exchange, and all moneys, negotiable instruments and securities used, or which have been used, or which are intended to be used to facilitate any violation of this article: Provided, That no property may be forfeited under this subdivision, to the extent of the interest of an owner, by reason of any act or omission established by that owner to have been committed or omitted without his knowledge or consent; and
(7) All real property, including any right, title and interest in any lot or tract of land, and any appurtenances or improvements, which are used, or have been used, or are intended to be used, in any manner or part, to commit, or to facilitate the commission of a violation of this article punishable by more than one year imprisonment: Provided, That no property may be forfeited under this subdivision, to the extent of an interest of an owner, by reason of any act or omission established by that owner to have been committed or omitted without his knowledge or consent.
(b) The requirements of this section pertaining to the removal of seized property are not mandatory in the case of real property and the appurtenances thereto.
(c) Property subject to forfeiture under this section may be seized by any person granted law-enforcement powers (hereinafter referred to as the "appropriate person" in section 22B-1804).
§29-22B-1804. Procedure for seizure of forfeitable property.
(a) Seizure of property made subject to forfeiture by the provisions of sections 22B-1802 and 22B-1803 may be made upon process issued by any court of record having jurisdiction over the property.
(b) Notwithstanding the provisions of subsection (a) of this section, seizure of property subject to forfeiture by the provisions of this article may be made without process if:
(1) The seizure is incident to a lawful arrest or pursuant to a search under a search warrant or an inspection warrant;
(2) The property subject to seizure has been the subject of a prior judgment in favor of the state in a forfeiture proceeding based upon this section; or
(3) The appropriate person has probable cause to believe that the property was used or intended for use in violation of this chapter.
(c) In the event of seizure pursuant to subsection (b) of this section, forfeiture proceedings shall be instituted within ninety days of the seizure thereof.
(d) Property taken or detained under this section shall not be subject to replevin, but is deemed to be in the custody of the appropriate person, subject only to the orders and decrees of the court having jurisdiction over the forfeiture proceedings. When property is seized under this article, the appropriate person may:
(1) Place the property under seal;
(2) Remove the property to a place designated by him or her;
(3) Require the appropriate law-enforcement agency to take custody of the property and remove it to an appropriate location for disposition in accordance with law; or
(4) In the case of seized moneys, securities or other negotiable instruments, place the assets in any interest-bearing depository insured by an agency of the federal government.
The requirements of this subsection (d), pertaining to the removal of seized property, are not mandatory in the case of real property and appurtenances thereto.
§29-22B-1805. Procedures for forfeiture.
(a) The following procedures for forfeiture shall be followed:
(1) Any proceeding wherein the state seeks forfeiture of property subject to forfeiture under this section shall be a civil proceeding. A petition for forfeiture may be filed on behalf of the state and any law-enforcement agency making a seizure under this article by the prosecuting attorney of a county, or duly appointed special prosecutor;
(2) A petition for forfeiture may be filed and proceedings held thereon in the circuit court of the county wherein the seizure was made or the circuit court of the county wherein any owner of the property subject to forfeiture may reside;
(3) Any civil trial stemming from a petition for forfeiture brought under this chapter at the demand of either party shall be by jury;
(4) A petition for forfeiture of the seized property shall be filed within ninety days after the seizure of the property in question. The petition shall be verified by oath or affirmation of a law-enforcement officer representing the law-enforcement agency responsible for the seizure or the prosecuting attorney and shall contain the following:
(A) A description of the property seized;
(B) A statement as to who is responsible for the seizure;
(C) A statement of the time and place of seizure;
(D) The identity of the owner or owners of the property, if known;
(E) The identity of the person or persons in possession of the property at the time seized, if known;
(F) A statement of facts upon which probable cause for belief that the seized property is subject to forfeiture pursuant to the provisions of this article is based;
(G) The identity of all persons or corporations having a perfected security interest or lien in the subject property, as well as the identity of all persons or corporations known to the affiant who may be holding a possessory or statutory lien against such property; and
(H) A prayer for an order directing forfeiture of the seized property to the state, and vesting ownership of such property in the state.
(b) At the time of filing or as soon as practicable thereafter, a copy of the petition for forfeiture shall be served upon the owner or owners of the seized property, as well as all holders of a perfected security interest or lien or of a possessory or statutory lien in the same class, if known. Should diligent efforts fail to disclose the lawful owner or owners of the seized property, a copy of the petition for forfeiture shall be served upon any person who was in possession or alleged to be in possession of the property at the time of seizure, where such person's identity is known. The above service shall be made pursuant to the provisions of the West Virginia Rules of Civil Procedure. Any copy of the petition for forfeiture so served shall include a notice substantially as follows:
"To any claimant to the within described property: You have the right to file an answer to this petition setting forth your title in, and right to possession of, the property within thirty days from the service hereof. If you fail to file an answer, a final order forfeiting the property to the state will be entered, and such order is not subject to appeal."
If no owner or possessors, lienholders or holders of a security interest be found, then such service may be made by Class II legal publication in accordance with the provisions of article 59-3-1, et seq., of this code, and the publication area shall be the county wherein such property was located at the time of seizure and the county wherein the petition for forfeiture is filed.
(c) In addition to the requirements of subsection (b) of this section, the prosecuting attorney or law-enforcement officer upon whose oath or affirmation the petition for forfeiture is based, shall be responsible for the publication of a further notice. Such further notice that a petition for forfeiture has been filed shall be published by Class II legal advertisement in accordance with article 59-3-1, et seq., of this code. The publication area shall be the county wherein the property was seized and the county wherein the petition for forfeiture is filed. The notice shall advise any claimant to the property of their right to file a claim on or before the date set forth in the notice, which date shall not be less than thirty days from the date of the first publication. The notice shall specify that any claim must clearly state the identity of the claimant and an address where legal process can be served upon that person. In addition, such notice shall contain the following information:
(1) A description of the property seized;
(2) A statement as to who is responsible for the seizure;
(3) A statement of the time and place of seizure;
(4) The identity of the owner or owners of the property, if known;
(5) The identity of the person or persons in possession of the property at the time of seizure, if known; and
(6) A statement that prayer for an order directing forfeiture of the seized property to the state, and vesting ownership of such property in the state, shall be requested of the court.
(d) If no answer or claim is filed within thirty days of the date of service of the petition pursuant to subsection (b) of this section, or within thirty days of the first publication pursuant to subsection (b) of this section, the court shall enter an order forfeiting the seized property to the state. If any claim to the seized property is timely filed, a time and place shall be set for a hearing upon such claim. The claimant or claimants shall be given notice of such hearing not less than ten days prior to the date set for the hearing.
(e) At the hearing upon the claim or claims, the state shall have the burden of proving by a preponderance of the evidence that the seized property is subject to forfeiture pursuant to the provisions of this chapter.
(f) Any order forfeiting property to the state and entered pursuant to this section perfects the state's right, title and interest in the forfeited property and relates back to the date of seizure: Provided, That in any proceeding under this article the circuit court shall in its final order make specific findings with respect to whether or not probable cause to seize such property existed at the time of such seizure.
(g) During the pendency of a forfeiture proceeding, it is unlawful for any property owner or holder of a bona fide security interest or other valid lien-holder to transfer or attempt to transfer any ownership interest or security interest in seized property with the intent to defeat the purpose of this article, and the court wherein the petition for forfeiture is filed may enjoin a property owner or holder of a security interest or other lien-holder from making such a transfer should one come to its attention. Any such transfer, that is made in violation of the provisions of this subsection, shall have no effect upon an order of the court forfeiting seized property to the state if a notice of lis pendens is filed prior to the recording of the instrument of transfer.
(h) The court may void any transfer of property made before or after a forfeiture proceeding has been commenced, which is subject to forfeiture, if the transfer was not to a bona fide purchaser without notice for value.
(i) An appeal of a decision of the circuit court concerning a forfeiture proceeding brought pursuant to this chapter must be filed within one hundred twenty days of the date of entry of the final appealable order. The appellant shall be required to give notice of intent to appeal within thirty days of the entry of such appealable order.
§29-22B-1806. Disposition of forfeited moneys, securities or other negotiable instruments.

(a) Whenever moneys, securities or other negotiable instruments are forfeited under the provisions of this article, such proceeds shall be distributed as follows:
(1) Ten percent of the proceeds shall be tendered to the office of the prosecuting attorney which initiated the forfeiture proceeding; and
(2) The balance shall be deposited in a special law-enforcement investigation fund. The fund may be placed in any interest-bearing depository insured by an agency of the federal government. The fund shall be administered by the chief of the law-enforcement agency that seized the forfeited property.
(b) No funds shall be expended from the special law-enforcement investigation fund except as follows:
(1) In the case of the funds belonging to the West Virginia state police, the funds shall only be expended at the direction of the superintendent and in accordance with the provisions of section 5A-2-15 and subsection 12-2-2(j) of this code;
(2) In the case of funds belonging to the office of either the sheriff or prosecuting attorney of any county in which the special fund has been created, the funds therein may only be expended in the manner provided in sections 7-5-4 and 5 of this code; and
(3) In the case of funds belonging to the police department of any municipality in which the special fund has been created, the funds therein may only be expended in the manner provided in section 8-13-22 of this code.
§29-22B-1807. Disposition of other forfeited property; distribution of proceeds.

(a) When property other than that referred to in section 22B-1806 of this part is forfeited under this section, the circuit court ordering the forfeiture, upon application by the prosecuting attorney or the chief of the law-enforcement agency that seized said forfeited property, may direct that:
(1) Title to the forfeited property be vested in the law-enforcement agency so petitioning; or
(2) The law-enforcement agency responsible for the seizure retain the property for official use; or
(3) The forfeited property shall be offered at public auction to the highest bidder for cash. Notice of such public auction shall be published as a Class III legal advertisement in accordance with article 59-3-1, et seq., of this code. The publication area shall be the county where the public auction will be held.
(b) When a law-enforcement agency receives property pursuant to this section, the court may, upon request of the prosecuting attorney initiating the forfeiture proceeding, require the law-enforcement agency to pay unto the office of said prosecuting attorney a sum not to exceed ten percent of the value of the property received to compensate said office for actual costs and expenses incurred.
(c) The proceeds of every public sale conducted pursuant to this section shall be paid and applied as follows: First, to the balance due on any security interest preserved by the court; second, to the costs incurred in the storage, maintenance and security of the property; third, to the costs incurred in selling the property.
(d) Any proceeds of a public sale remaining after distribution pursuant to this section shall be distributed as follows:
(1) Ten percent of such proceeds shall be tendered to the office of the prosecuting attorney who initiated the forfeiture proceeding; and
(2) The balance shall be deposited in a special law-enforcement investigation fund. Such fund shall be administered by the chief of the law-enforcement agency that seized the forfeited property sold and shall take the form of an interest-bearing account with any interest earned to be compounded to the fund. Any funds deposited in the special law-enforcement investigative fund pursuant to this article shall be expended only to defray the costs of protracted or complex investigations, to provide additional technical equipment or expertise, to provide matching funds to obtain federal grants or for such other law-enforcement purposes as the chief of the law-enforcement agency may deem appropriate; however, these funds may not be utilized for regular operating needs.
(e) If more than one law-enforcement agency was substantially involved in effecting the seizure and forfeiture of property, the court wherein the petition for forfeiture was filed shall equitably distribute the forfeited property among the law-enforcement agencies. In the event of a public sale of such property pursuant to subsection (a) of this section, the court shall equitably distribute any proceeds remaining after distribution pursuant to subsection (c) and subdivision (1), subsection (d) of this section, among such law-enforcement agencies for deposit into their individual special law-enforcement investigative fund. Equitable distribution shall be based upon the overall contribution of the individual law-enforcement agency to the investigation which led to the seizure.
(f) Upon the sale of any forfeited property for which title or registration is required by law, the state shall issue a title or registration certificate to any bona fide purchaser at a public sale of the property conducted pursuant to this section. Upon the request of the law-enforcement agency receiving, pursuant to the order of the court, or electing to retain, pursuant to this section, any forfeited property for which title or registration is required by law, the state shall issue a title or registration certificate to the appropriate governmental body.
(g) Any funds expended pursuant to the provisions of this section, shall only be expended in the manner provided in subsection 60A-7-705(b), of this code.
(h) Every prosecuting attorney or law-enforcement agency receiving forfeited property or proceeds from the sale of forfeited property pursuant to this article shall submit an annual report to the body which has budgetary authority over such agency. Such report shall specify the type and approximate value of all forfeited property and the amount of proceeds from the sale of forfeited property received in the preceding year. No county or municipality may use anticipated receipts of forfeited property in their budgetary process.
(i) In lieu of the sale of any forfeited property subject to a bona fide security interest preserved by an order of the court, the law-enforcement agency receiving the forfeited property may pay the balance due on any security interest preserved by the court from funds budgeted to the office or department or from the special fund and retain possession of the forfeited property for official use pursuant to this section.
(j) In every case where property is forfeited, disposition of the forfeited property, in accordance with this article, shall be made within six months of the date upon which the court of jurisdiction orders forfeiture. Should the office or agency receiving the property fail either to place the property in official use or dispose of the property in accordance with law, the court of jurisdiction shall cause disposition of the property to be made with any proceeds therefrom to be awarded to the state.
(k) No disposition shall occur until all applicable periods for filing a notice of intent to appeal has expired and no party in interest shall have filed such notice. The filing of the notice of intent to appeal shall stay any such disposition until the appeal has been finally adjudicated or until the appeal period of one hundred eighty days has expired without an appeal having actually been taken or filed, unless a valid extension of the appeal has been granted by the circuit court under the provisions of section 58-4-7 of this code.
(l) The special law-enforcement investigative funds of each law-enforcement agency may be placed in an interest-bearing depository insured by the federal government.

Part 19. Miscellaneous provisions.

§29-22B-1901. Effect of this article on certain taxes.
(a) Notwithstanding any provision of this code to the contrary, effective July 1, 2002, persons who hold a current operator's license issued under this article shall be exempt from paying the taxes imposed by articles 11-15-1, et seq., and 11- 15A-1, et seq., of this code on their purchases of video lottery terminals and video lottery games.
(b) Notwithstanding any provision of this code to the contrary, effective July 1, 2002, the consideration paid by a patron of a restricted access adult-only facility to play of video lottery games shall be exempt from the tax imposed by article 11-15-1, et seq., of this code.
(c) Notwithstanding the provisions of section 8-13-4 of this code to the contrary, effective July 1, 2002, municipalities may not impose the license fees imposed by this article on manufacturers, operators, limited video lottery retailers and service technicians. Municipalities may continue to impose any other license fees they are allowed to impose under this code.
(d) Notwithstanding any provision of this code to the contrary, effective July 1, 2002, municipalities may not impose the municipal business and occupation taxes imposed pursuant to section 8-13-5 of this code, or an amusement tax imposed pursuant to section 8-13-6 of this code on the income of an operator of video lottery terminals from income derived directly from activities conducted pursuant to the provisions of this article.
(e) Notwithstanding any provision of this code to the contrary, effective July 1, 2002, municipalities may not impose the municipal business and occupation taxes imposed pursuant to section 8-13-5 of this code on payments a limited video lottery retailer receives from an operator of video lottery terminals for activities conducted pursuant to the provisions of this article.
§29-22B-1902. Preemption of state laws or local regulation.
(a) No state or local law or regulation providing any penalty, disability, restriction, regulation or prohibition for the manufacture, transportation, storage, distribution, advertising, possession or sale of any lottery video lottery terminal, games or materials or for the operation of any lottery shall apply to operations by the lottery commission or persons licensed pursuant to this article or operations or activities that are authorized in this article.
(b) The provisions of this article preempt all regulations, rules, ordinances and laws of any county or municipality in conflict herewith: Provided, That nothing herein shall invalidate any zoning law, or Sunday closing law under article 61-10-1, et seq., of this code.
(c) Nothing in this article shall be deemed to permit the operation of any lottery otherwise prohibited by the laws of this state, not owned and operated by this state and permitted by this article.
§29-22B-1903. Timing of implementation.
The Legislature finds and declares that the success of this state's implementation of video lottery operations under this article requires that the operations be phased in over a manageable transition period designed to allow careful regulation and control of the implementation of operations under this article and also to allow persons possessing devices that are declared by this article to be contraband gambling devices a reasonable opportunity to remove any existing devices from this state.