COMMITTEE SUBSTITUTE

FOR

H. B. 2975

(By Delegates Hrutkay, Staton, Kominar,

Boggs, Amores, Craig and Webb)


(Originating in the Committee on the Judiciary)


[April 4, 2001]


A BILL to amend and reenact section eleven, article twenty-two, chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact section nine, article twenty-two-a of said chapter; and to amend and reenact section five, article ten, chapter sixty-one of said code, prohibiting persons under the age of twenty-one from playing lottery games sanctioned by or licensed under state law; making it a misdemeanor for persons to bet or wager in any game of chance that they are not allowed by law to participate in, and providing a penalty therefor.

Be it enacted by the Legislature of West Virginia:
That section eleven, article twenty-two, chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that section nine, article twenty-two-a of said chapter be amended and reenacted; and that section five, article ten, chapter sixty-one of said code be amended and reeanacted, to read as follows:
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 22. STATE LOTTERY ACT.

§29-22-11. Prohibited acts; restrictions on sales agents and retailers; unauthorized sales; sales to minors; gifts to minors; prizes to commission officers and staff prohibited; criminal penalties for prohibited acts.

(a) No person may sell lottery tickets or materials unless authorized by the commission to so act. No person may perform the functions of a licensed lottery sales agent unless licensed by the commission. No person may perform the functions of a lottery retailer unless authorized therefor by the commission. No person may sell a lottery ticket or material at a price greater than that established by the commission; except, that nothing in this section may be construed to prevent any person from giving a lottery ticket or material to another as a gift or bonus. No person other than a licensed lottery sales agent or an employee thereof, while acting within the scope of such employment, shall sell lottery tickets, and then only on the premises stated on the license.
(b) No ticket shall be sold to any person under the age of eighteen twenty-one years. This section does not prohibit the purchase of a ticket by a person eighteen years of age or older for the purpose of making the ticket a gift to a person less than that age.
(c) No ticket may be purchased by and no prizes received by or awarded to any officers or employees of the commission or any member of their immediate household.
(d) Any person who violates the provisions of this section is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than fifty dollars nor more than five hundred dollars, or imprisoned in the county jail not more than one year, or both fined and imprisoned.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-9. General duties of all video lottery license and permit holders; duties of permitted manufacturers; duties of permitted service technicians; duties of permitted validation managers; duties of floor attendants; duties of licensed racetracks.
(a) All video lottery license and permit holders shall:
(1) Promptly report to the commission any facts or circumstances related to video lottery operations which constitute a violation of state or federal law;
(2) Conduct all video lottery activities and functions in a manner which does not pose a threat to the public health, safety or welfare of the citizens of this state, and which does not adversely affect the security or integrity of the lottery;
(3) Hold the commission and this state harmless from and defend and pay for the defense of any and all claims which may be asserted against a license or permit holder, the commission, the state or the employees thereof, arising from the license or permit holder's participation in the video lottery system authorized by this article;
(4) Assist the commission in maximizing video lottery revenues;
(5) Maintain all records required by the commission;
(6) Upon request by the commission, provide the commission access to all records and the physical premises of the business or businesses where the license or permit holder's video lottery activities occur, for the purpose of monitoring or inspecting the license or permit holder's activities and the video lottery games, video lottery terminals and associated equipment; and
(7) Keep current in all payments and obligations to the commission.
(b) Manufacturers shall:
(1) Manufacture terminals and associated equipment for placement in this state in accordance with the specifications and procedures specified in sections five and six of this article;
(2) Manufacture terminals and associated equipment to ensure timely delivery to licensed racetracks;
(3) Maintain and provide an inventory of spare parts to assure the timely repair and continuous operation of licensed video lottery terminals intended for placement in this state;
(4) Provide to licensed racetracks and permitted service technicians technical assistance and training in the service and repair of video lottery terminals and associated equipment so as to assure the continuous authorized operation and play of the video lottery terminals; and
(5) Obtain certification of compliance under the provisions of part fifteen of the federal communication commission rules for all video lottery terminals placed in this state.
(c) Service technicians 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; and
(3) Promptly notify the commission of any electronic or mechanical video lottery terminal malfunctions.
(d) Validation managers shall:
(1) Attend all commission mandated meetings, seminars and training sessions concerning the validation and redemption of video lottery winning tickets and the operation of all ticket validation terminals and equipment;
(2) Maintain all skills necessary for the accurate validation of video lottery tickets; and
(3) Supervise video lottery ticket validation procedures at the applicable licensed racetrack.
(e) Floor attendants shall:
(1) Provide change and assistance to persons playing video lottery games in a licensed racetrack video lottery gaming area;
(2) Open video lottery terminal access doors to clear ticket paper jams and to insert new paper ticket tapes into the video lottery terminals; and
(3) Open video lottery terminal access doors to clear bill jams from the bill acceptors in video lottery terminals.
(f) The specific duties required of all licensed racetracks are as follows:
(1) Acquire video lottery terminals by purchase, lease or other assignment and provide a secure location for the placement, operation and play of the video lottery terminals;
(2) Pay for the installation and operation of commission approved telephone lines to provide direct dial-up or on-line communication between each video lottery terminal and the commission's central control computer;
(3) Permit no person to tamper with or interfere with the operation of any video lottery terminal;
(4) Ensure that telephone lines from the commission's central control computer to the video lottery terminals located at the licensed racetrack are at all times connected and prevent any person from tampering or interfering with the operation of the telephone lines;
(5) Ensure that video lottery terminals are within the sight and control of designated employees of the licensed racetrack;
(6) Ensure that video lottery terminals are placed and remain placed in the specific locations within the licensed racetrack which have been approved by the commission. No video lottery terminal or terminals at a racetrack shall be relocated without the prior approval of the commission;
(7) Monitor video lottery terminals to prevent access to or play by persons who are under the age of eighteen twenty-one years or who are visibly intoxicated;
(8) Maintain at all times sufficient change and cash in the denominations accepted by the video lottery terminals;
(9) Provide no access by a player to an automated teller machine (ATM) in the area of the racetrack 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;
(10) Pay for all credits won upon presentment of a valid winning video lottery ticket;
(11) Report promptly to the manufacturer and the commission all video lottery terminal malfunctions and notify the commission of the failure of a manufacturer or service technician to provide prompt service and repair of such terminals and associated equipment;
(12) Conduct no video lottery advertising and promotional activities without the prior written approval of the director;
(13) Install, post and display prominently at locations within or about the licensed racetrack, signs, redemption information and other promotional material as required by the commission;
(14) Permit video lottery to be played only during those hours established and approved by the commission;
(15) Maintain general liability insurance coverage for all video lottery terminals in an amount of at least two million dollars per claim;
(16) Promptly notify the commission in writing of any breaks or tears to any logic unit seals;
(17) Assume liability for lost or stolen money from any video lottery terminal; and
(18) Submit an audited financial statement, which has been approved by the commission, to the commission when applying for a license or permit and annually thereafter prior to the time a license or permit may be renewed.
CHAPTER 61. CRIMES AND THEIR PUNISHMENT.

ARTICLE 10. CRIMES AGAINST PUBLIC POLICY.

§61-10-5. Betting on games of chance; furnishing money or thing of value therefor; penalty.

If any person at any place, public or private, bet or wage wager money or other thing of value on any game of chance not sanctioned by, or licensed under, the laws of this state or in which they are not allowed by law to participate, or shall knowingly furnish any money or other thing of value to any other person to bet or wage on any such game, he shall be guilty of a misdemeanor, and, upon conviction, shall be fined not less than five nor more than three hundred dollars, and shall, if required by the court, give security for his good behavior for one year, and in default of the payment of such fine and the costs and the execution of such bond, if such bond be required, shall be imprisoned in the county jail not less than ten nor more than thirty days.