ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 649
(By Senators Sharpe, Edgell, Minard, Ross, Anderson,
Bowman and Kessler)
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[Originating in the Committee on Finance;
reported February 26, 2002.]
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A BILL to amend and reenact section ten, article twenty-two,
chapter twenty-nine of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to increasing
licensed lottery sales agent commissions to seven percent of
gross sales.
Be it enacted by the Legislature of West Virginia:
That section ten, article twenty-two, chapter twenty-nine of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-10. Licensed lottery sales agents; restrictions; annual
license and fee; factors; application; bond; age;
nonassignable license; organizations qualified; commissions;
display of license; geographic distribution; monopoly
prohibited; lottery retailers; preprinted instant type lottery tickets; fee; certificate of authority; security; bond.
(a) The commission shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code for the licensing of lottery
sales agents for the sale and dispensing of lottery tickets,
materials and lottery games, and the operations of electronic
computer terminals therefor, subject to the following:
(1) The commission shall issue its annual license to the
lottery sales agents for each lottery outlet and for such a fee as
is established by the commission to cover its costs thereof, but
not to exceed one thousand dollars. Application for licensing as
a lottery sales agent shall be on forms to be prescribed and
furnished by the director;
(2) No licensee may engage in business exclusively as a
lottery sales agent;
(3) The commission shall ensure geographic distribution of
lottery sales agents throughout the state;
(4) Before issuance of a license to an applicant, the
commission shall consider factors such as the financial
responsibility, security, background, accessibility of the place of
business or activity to the public, public convenience and the
volume of expected sales;
(5) No person under the age of twenty-one may be licensed as
an agent. No licensed agent may employ any person under the age of
eighteen for sales or dispensing of lottery tickets or materials or
operation of a lottery terminal;
(6) A license is valid only for the premises stated thereon.
on the license;
(7) The director may issue a temporary license when determined
necessary;
(8) A license is not assignable or transferable;
(9) Before a license is issued, an agent shall be bonded for
an amount and in the form and manner to be determined by the
director, or shall provide such other security, in an amount, form
and manner determined by the director, as that will ensure the
performance of the agent's duties and responsibilities as a
licensed lottery agent or the indemnification of the commission;
(10) The commission may issue licenses to any legitimate
business, organization, person or entity, including, but not
limited to, civic or fraternal organizations; parks and recreation
commissions or similar authorities; senior citizen centers, state-
owned stores, persons lawfully engaged in nongovernmental business
on state property, persons lawfully engaged in the sale of
alcoholic beverages; political subdivisions or their agencies or
departments, state agencies, commission-operated agencies; persons
licensed under the provisions of article twenty-three, chapter
nineteen of this code; and religious, charitable or seasonal
businesses;
(11) Licensed lottery sales agents shall receive six and one
quarter seven percent of gross sales as commission for the
performance of their duties: Provided, That a portion of the
commission not to exceed one and one quarter percent of gross sales may be paid from unclaimed prize moneys accumulated under section
sixteen of this article. In addition, the commission may
promulgate a bonus-incentive plan as additional compensation not to
exceed one percent of annual gross sales. The method and time of
payment shall be determined by the commission;
(12) Licensed lottery sales agents shall prominently display
the license on the premises where lottery sales are made; and
(13) No person or entity or subsidiary, agent or subcontractor
thereof of that person or entity may receive or hold more than
twenty-five percent of the licenses to act as licensed lottery
sales agent in any one county or municipality nor more than five
percent of the licenses issued throughout this state: Provided,
That the limitations of twenty-five percent and five percent in
this subdivision do not apply if it is determined by the commission
that there are not a sufficient number of qualified applicants for
licenses to comply with these requirements.
(b) The commission shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code specifying the terms and
conditions for contracting with lottery retailers for sale of
preprinted instant type lottery tickets and may provide for the
dispensing of such the tickets through machines and devices.
Tickets may be sold or dispensed in any public or private store,
operation or organization, without limitation. The commission may
establish an annual fee not to exceed fifty dollars for such those
persons, per location or site, and shall issue a certificate of authority to act as a lottery retailer to such persons them. The
commission shall establish procedures to ensure the security,
honesty and integrity of the lottery and distribution system. The
commission shall establish the method of payment, commission
structure, methods of payment of winners, including payment in
merchandise and tickets, and may require prepayment by lottery
retailers, require bond or security for payment and require deposit
of receipts in accounts established therefor. Retailers shall
prominently display the certificate of authority issued by the
commission on the premises where lottery sales are made.