ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 649
(Senators Sharpe, Edgell, Minard, Ross, Anderson,
Bowman and Kessler, original sponsors)
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[Passed March 9, 2002; to take effect July 1, 2002.]
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AN ACT 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 a fee
established by the commission to cover its costs, but not to exceed
one thousand dollars. Application for licensing as a lottery sales
agent shall be on forms 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 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 determined by the director, or
shall provide other security, in an amount, form and manner
determined by the director, 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 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
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 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 those persons, per
location or site, and shall issue a certificate of authority to act
as a lottery retailer to 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.