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H. B. 2264\
(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Introduced January 15, 2003; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact sections four, five, ten, eleven,
thirteen, thirteen-b, sixteen, twenty-eight, article
twenty-three, chapter nineteen of the code of West Virginia,
one thousand nine hundred thirty-one, as amended; to amend and
reenact sections one, two, three, four, five, six, seven,
eight, nineteen, and twenty-six, article twenty-two, chapter
twenty-nine of said code; to amend article twenty-two-a of
said chapter, by adding thereto a new section, designated
section three-a; to amend and reenact sections three hundred
six and three hundred eight, article twenty-two-b of said
chapter; to further amend said article twenty-two-b by adding
thereto a new section, designated section three hundred
thirty-five; to amend article twenty-five of said chapter by
adding thereto a new section, designated section two-a; to
amend article twenty, chapter forty-seven of said code by adding thereto two new sections, designated sections one-a and
one-b; to amend article twenty-one of said chapter by adding
thereto two new sections, designated sections one-a and one-b;
and to amend article twenty-three of said chapter by adding
thereto two new sections, designated sections one-a and one-b,
all relating generally to gaming, including horse and dog
racing, pari-mutuel wagering, lottery, racetrack video
lottery, limited video lottery, authorized gaming facility,
charitable bingo, charitable raffles and charitable raffle
boards and games; renaming lottery commission as state gaming
commission; abolishing racing commission and transferring
powers and duties to state gaming commission; transferring
powers and duties of tax commissioner as to charitable bingo
and raffles and charitable raffle boards and games to state
gaming commission; making substantive changes necessary to
effectuate all these changes; and specifying effective dates.
Be it enacted by the Legislature of West Virginia:
That sections four, five, ten, eleven, thirteen, thirteen-b,
sixteen, twenty-eight, article twenty-three, chapter nineteen of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that sections one, two, three,
four, five, six, seven, eight, nineteen, and twenty-six, article
twenty-two, chapter twenty-nine of said chapter be amended and
reenacted; that article twenty-two-a of said chapter be amended by adding thereto a new section, designated section three-a; that
sections three hundred six and three hundred eight, article
twenty-two-b of said chapter be amended and reenacted; that said
article twenty-two-b be further amended by adding thereto a new
section, designated section three hundred thirty-five; that article
twenty-five of said chapter be amended by adding thereto a new
section, designated section two-a; article twenty, chapter
forty-seven of said code be amended by adding thereto two new
sections, designated sections one-a and one-b; that article
twenty-one of said chapter be amended by adding thereto two new
sections, designated sections one-a and one-b; and that article
twenty-three of said chapter be amended by adding thereto two new
sections, designated sections one-a and one-b, all to read as
follows:
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-4. West Virginia racing commission abolished; functions
transferred to the state gaming commission; annual
report.
(a) The "West Virginia racing commission," is continued in
existence as a public corporation, and, as such, may contract and
be contracted with, plead and be impleaded, sue and be sued and
have and use a common seal is hereby abolished effective the first
day of July, two thousand three. Powers and duties of the racing commission shall on and after that date be exercised by the state
gaming commission created by section four, article twenty-two,
chapter twenty-nine of this code.
(b) The racing commission shall consist of three members, not
more than two of whom shall belong to the same political party, to
be appointed by the governor by and with the advice and consent of
the senate. The term of office for the members of such racing
commission shall be four years, and until their successors have
been appointed and have qualified, and members of the racing
commission may serve any number of successive terms. The members
of the racing commission in office on the effective date of this
article shall, unless removed by the governor after the effective
date of the amendment and reenactment of this section in two
thousand one shall, unless removed by the governor after the
effective date of this article, continue to serve until their terms
expire and until their successors have been appointed and have
qualified. Any vacancy in the office of a member of the racing
commission shall be filled by appointment by the governor for the
unexpired term of the member whose office shall be vacant. No
person is eligible for appointment to or to serve upon the racing
commission;
(1) Unless he is an actual and bona fide resident of this
State, shall have resided in this State for a period of at least
five years next preceding his appointment, shall be a qualified voter of this State and be not less than twenty-five years of age:
(2) Who directly or indirectly, or in any capacity, owns or
has any interest, in any manner whatever, in any racetrack where
horse or dog race meetings may be held, including, but not limited
to, an interest as owner, lessor, lessee, stockholder or employee;
(3) While serving as am member of the legislature or as an
elective officer of this State; or
(4) Who has been or shall be convicted of an offense which,
under the law of this State or any other state or of the United
States of America, constitutes a felony, or is a violation of
article four, chapter sixty-one of this code.
(c) Each member of the racing commission shall be reimbursed
for all reasonable and necessary expenses actually incurred in the
performance of his or her duties as member of the racing
commission.
(d) The racing commission shall have its principal office at
the seat of government, and shall meet annually at its principal
office in the month of January, and at such other times and places
designated by its chairman. At such annual meeting the racing
commission shall elect from its membership a chairman and such
other officers that are desired. Other meetings of the racing
commission may be called by the chairman on such notice to the
other members that are prescribed by the racing commission.
(e) A majority of the members of the racing commission shall constitute a quorum for the transaction of its business or the
exercise of its powers and authority. No person not a bona fide
member of the racing commission shall vote upon or participate in
the deliberations of the racing commission on any matter which may
come before it. All racing commission records, except as
otherwise provided by law, shall be open to public inspection
during regular office hours.
(f) (b) As soon as possible after the close of each calendar
year, the racing gaming commission shall submit to the governor a
report of the racing transactions of the racing commission during
the preceding calendar year.
(c) Effective the first day of July, two thousand three,
whenever the term "racing commission" or "West Virginia racing
commission is used in this article twenty-three, or in article
twenty-four of this chapter, or anywhere else in this code, these
terms shall mean the state gaming commission established in article
twenty-two, chapter twenty-nine of this code.
§19-23-5. Racing secretary and other offices abolished as of the
first day of July, two thousand three; administrative
functions and personnel placed under the supervision
of the director of the state gaming agency.
(a) The racing commission shall appoint a racing secretary to
represent the racing commission and such racing secretary shall
possess such powers and authority and perform such duties as the racing commission may direct or prescribe. The racing secretary
shall preserve at the racing commission's principal office all
books, maps, records, documents and other papers of the racing
commission. The racing secretary shall, in addition to all other
duties imposed upon him by the racing commission, serve in a
liaison capacity between licensees and the racing commission. The
racing commission may also employ, direct and define the duties of
an assistant racing secretary and such stenographers, clerks and
other office personnel as it may deem necessary to carry out the
duties imposed upon it under the provisions of this article The
statutory offices of racing secretary, assistant racing secretary,
chief clerk, director of security, director of audits, and chief
chemist are abolished effective the first day of July, two thousand
three.
(b) In addition to the employees referred to above, The
racing commission shall employ, direct and define the duties of a
chief clerk, director of security, director of audit, chief
chemist, stewards to represent the racing commission, supervisors
of the pari-mutuel wagering conducted under the provisions of this
article, veterinarians, inspectors, accountants, guards and all
other employees deemed by the racing commission to be essential in
connection with any horse or dog race meeting. The director of
audit shall be a certified public accountant or experienced public
accountant.
(c) No individual shall knowingly be employed or be continued
in employment by the racing commission in any capacity whatever:
(1) Who directly or indirectly, or in any capacity, owns or
has any interest, in any manner whatever, in any racetrack where
horse or dog race meetings may be held, including, but not limited
to, an interest as owner, lessor, lessee, stockholder or employee;
(2) Who at the time is or has been within one year prior
thereto a member of the legislature or an elective officer of this
State, unless he is experienced and qualified as a racing official;
or
(3) Who has been or shall be convicted of an offense which,
under the law of this State or any other state or of the United
States of American, constitutes a felony, or is a violation of
article four, chapter sixty-one of this code. Any steward employed
by the racing commission or by a licensee shall be a person of
integrity, and experienced and qualified for such position by the
generally accepted practices and customs of horse or dog racing in
the United States.
(d) The racing secretary and All other employees whose
functions are required or needed under provisions of this article
of the racing commission shall serve at the will and pleasure of
the racing commission. The racing secretary and the other
employees referred to in this section as employees of the racing
commission They shall receive such compensation as may be fixed by the racing commission within the limit of available funds, and
shall be reimbursed for all reasonable and necessary expenses
actually incurred in the performance of their official duties.
(e) All compensation and reimbursement for expenses of the
members of the racing commission, the racing secretary and all
other employees of the racing commission shall be paid from the
funds in the hands of the state treasurer collected under the
provisions of this article and shall be itemized in the budget in
the same manner as all other departments of state government, but
no reimbursement for expenses incurred shall be paid unless an
itemized account thereof, under oath, be first filed with the state
auditor.
§19-23-10. Daily license tax; pari-mutuel pools tax; how taxes
paid; alternate tax; credits.
(a) Any racing association conducting thoroughbred racing at
any horse racetrack in this state shall pay each day upon which
horse races are run a daily license tax of two hundred fifty
dollars. Any racing association conducting harness racing at any
horse racetrack in this state shall pay each day upon which horse
races are run a daily license tax of one hundred fifty dollars.
Any racing association conducting dog races shall pay each day upon
which dog races are run a daily license tax of one hundred fifty
dollars. In the event thoroughbred racing, harness racing, dog
racing, or any combination of the foregoing are conducted on the same day at the same racetrack by the same racing association, only
one daily license tax in the amount of two hundred fifty dollars
shall be paid for that day. Any daily license tax shall not apply
to any local, county or state fair, horse show or agricultural or
livestock exposition at which horse racing is conducted for not
more than six days.
(b) Any racing association licensed by the racing commission
to conduct thoroughbred racing and permitting and conducting
pari-mutuel wagering under the provisions of this article shall, in
addition to the daily license tax set forth in subsection (a) of
this section, pay to the racing commission, from the commission
deducted each day by the licensee from the pari-mutuel pools on
thoroughbred racing a tax calculated on the total daily
contribution of all pari-mutuel pools conducted or made at any and
every thoroughbred race meeting of the licensee licensed under the
provisions of this article. The tax, on the pari-mutuel pools
conducted or made each day during the months of January, February,
March, October, November and December, shall from the effective
date of this section and for fiscal year one thousand nine hundred
eighty-five be calculated at two and six-tenths percent; for fiscal
year one thousand nine hundred eighty-six, be calculated at two and
three-tenths percent; for fiscal year one thousand nine hundred
eighty-seven, be calculated at two percent of the pool; for fiscal
year one thousand nine hundred eighty-eight, be calculated at one and one-half percent; for fiscal year one thousand nine hundred
eighty-nine, be calculated at one percent of the pool; for fiscal
year one thousand nine hundred ninety, seven tenths of one percent,
and for fiscal year one thousand nine hundred ninety-one and each
fiscal year thereafter be calculated at four tenths of one percent
of the pool; and, on the pari-mutuel pools conducted or made each
day during all other months, shall from the effective date of this
section and for fiscal year one thousand nine hundred eighty-five,
be calculated at three and six-tenths percent; for fiscal year one
thousand nine hundred eighty-six, be calculated at three and
three-tenths percent; for fiscal year one thousand nine hundred
eighty-seven, be calculated at three percent of the pool; for
fiscal year one thousand nine hundred eighty-eight, be calculated
at two and one-half percent; for fiscal year one thousand nine
hundred eighty-nine, be calculated at two percent of the pool; for
fiscal year one thousand nine hundred ninety, be calculated at one
and seven-tenths percent of the pool; and for fiscal year one
thousand nine hundred ninety-one and each fiscal year thereafter,
be calculated at one and four-tenths percent of the pool:
Provided, That out of the amount realized from the three tenths of
one percent decrease in the tax effective for fiscal year one
thousand nine hundred ninety-one and thereafter, which decrease
correspondingly increases the amount of commission retained by the
licensee, the licensee shall annually expend or dedicate: (i) One half of the realized amount for capital improvements in its barn
area at the track, subject to the racing commission's prior
approval of the plans for the improvements; and (ii) the remaining
one half of the realized amount for capital improvements as the
licensee may determine appropriate at the track. The term "capital
improvement" shall be as defined by the Internal Revenue Code:
Provided, however, That any racing association operating a horse
racetrack in this state having an average daily pari-mutuel pool on
horse racing of two hundred eighty thousand dollars or less per day
for the race meetings of the preceding calendar year shall, in lieu
of payment of the pari-mutuel pool tax, calculated as in this
subsection, be permitted to conduct pari-mutuel wagering at the
horse racetrack on the basis of a daily pari-mutuel pool tax fixed
as follows: On the daily pari-mutuel pool not exceeding three
hundred thousand dollars the daily pari-mutuel pool tax shall be
one thousand dollars plus the otherwise applicable percentage rate
imposed by this subsection of the daily pari-mutuel pool, if any,
in excess of three hundred thousand dollars: Provided further,
That upon the effective date of the reduction of the daily
pari-mutuel pool tax to one thousand dollars from the former two
thousand dollars, the association or licensee shall daily deposit
five hundred dollars into the special fund for regular purses
established by subdivision (1), subsection (b), section nine of
this article: And provided further, That if an association or licensee qualifying for the foregoing alternate tax conducts more
than one racing performance, each consisting of up to ten races in
a calendar day, the association or licensee shall pay both the
daily license tax imposed in subsection (a) of this section and the
alternate tax in this subsection for each performance: And
provided further, That a licensee qualifying for the foregoing
alternate tax is excluded from participation in the fund
established by section thirteen-b of this article: And provided
further, That this exclusion shall not apply to any thoroughbred
racetrack at which the licensee has participated in the West
Virginia thoroughbred development fund for more than four
consecutive years prior to the thirty-first day of December, one
thousand nine hundred ninety-two.
(c) Any racing association licensed by the racing commission
to conduct harness racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition to
the daily license tax required under subsection (a) of this
section, pay to the racing commission, from the commission deducted
each day by the licensee from the pari-mutuel pools on harness
racing, as a tax, three percent of the first one hundred thousand
dollars wagered, or any part thereof; four percent of the next one
hundred fifty thousand dollars; and five and three-fourths percent
of all over that amount wagered each day in all pari-mutuel pools
conducted or made at any and every harness race meeting of the licensee licensed under the provisions of this article.
(d) Any racing association licensed by the racing commission
to conduct dog racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition to
the daily license tax required under subsection (a) of this
section, pay to the racing commission, from the commission deducted
each day by the licensee from the pari-mutuel pools on dog racing,
as a tax, four percent of the first fifty thousand dollars or any
part thereof of the pari-mutuel pools, five percent of the next
fifty thousand dollars of the pari-mutuel pools, six percent of the
next one hundred thousand dollars of the pari-mutuel pools, seven
percent of the next one hundred fifty thousand dollars of the
pari-mutuel pools, and eight percent of all over three hundred
fifty thousand dollars wagered each day: Provided, That the
licensee shall deduct daily from the pari-mutuel tax an amount
equal to one tenth of one percent of the daily pari-mutuel pools in
dog racing in fiscal year one thousand nine hundred ninety; fifteen
hundredths of one percent in fiscal year one thousand nine hundred
ninety-one; two tenths of one percent in fiscal year one thousand
nine hundred ninety-two; one quarter of one percent in fiscal year
one thousand nine hundred ninety-three; and three tenths of one
percent. in fiscal year one thousand nine hundred ninety-four and
every fiscal year thereafter The amounts deducted shall be paid to
the racing commission to be deposited by the racing commission in a banking institution of its choice in a an unappropriated special
account to be known as "West Virginia Racing Gaming Commission-
Special Account-West Virginia Greyhound Breeding Development Fund".
The purpose of the fund is to promote better breeding and racing of
greyhounds in the state through awards and purses to resident
owners of accredited West Virginia whelped greyhounds. In order to
be eligible to receive an award or purse through the fund, the
owner of the accredited West Virginia whelped greyhound must be a
resident of this state. The moneys shall be expended by the racing
commission for purses for stake races, supplemental purse awards,
administration, promotion and educational programs involving West
Virginia whelped dogs, owned by residents of this state under rules
and regulations promulgated by the racing commission. The racing
commission shall pay out of the greyhound breeding development fund
to each of the licensed dog racing tracks the sum of seventy-five
thousand dollars for the fiscal year ending the thirtieth day of
June, one thousand nine hundred ninety-four. The licensee shall
deposit the sum into the special fund for regular purses
established under the provisions of section nine of this article.
The funds shall be expended solely for the purpose of supplementing
regular purses under rules and regulations promulgated by the
racing commission.
Supplemental purse awards will be distributed as follows:
Supplemental purses shall be paid directly to the owner of an accredited greyhound or, if the greyhound is leased, the owner may
choose to designate a percentage of the purse earned directly to
the lessor as agreed to via a written purse distribution form on
file with the racing commission.
The owner of accredited West Virginia whelped greyhounds that
earn a purse at any West Virginia meet will receive a bonus award
calculated at the end of each month as a percentage of the fund
dedicated to the owners as purse supplements, which shall be a
minimum of fifty percent of the total moneys deposited into the
West Virginia greyhound breeding development fund monthly.
The total amount of the fund available for the owners' awards
shall be distributed according to the ratio of purses earned by an
accredited greyhound to the total amount earned in races by all
accredited West Virginia whelped greyhounds for that month as a
percentage of the funds dedicated to the owners' purse supplements.
The owner of an accredited West Virginia whelped greyhound
shall file a purse distribution form with the racing commission for
a percentage of his or her dog's earnings to be paid directly to
the lessor of the greyhound. Distribution shall be made on the
fifteenth day of each month for the preceding month's achievements.
In no event shall purses earned at a meet held at a track
which did not make contributions to the West Virginia greyhound
breeder's development fund out of the daily pool on the day the
meet was held qualify or count toward eligibility for supplemental purse awards.
Any balance in the purse supplement funds after all
distributions have been made for the year revert to the general
account of the fund for distribution in the following year.
In an effort to further promote the breeding of quality West
Virginia whelped greyhounds, a bonus purse supplement shall be
established in the amount of fifty thousand dollars per annum, to
be paid in equal quarterly installments of twelve thousand five
hundred dollars per quarter using the same method to calculate and
distribute these funds as the regular supplemental purse awards.
This bonus purse supplement is for three years only, commencing on
the first day of July, one thousand nine hundred ninety-three, and
ending the thirtieth day of June, one thousand nine hundred
ninety-six. This money would come from the current existing
balance in the greyhound development fund.
Each pari-mutuel greyhound track shall provide stakes races
for accredited West Virginia whelped greyhounds: Provided, That
each pari-mutuel track shall have one juvenile and one open stake
race annually. The racing commission shall oversee and approve
racing schedules and purse amounts.
Ten percent of the deposits into the greyhound breeding
development fund beginning the first day of July, one thousand nine
hundred ninety-three and continuing each year thereafter, shall be
withheld by the racing commission and placed in a an unappropriated special revenue account hereby created in the state treasury called
the "administration, promotion and educational account". The
racing commission is authorized to expend the moneys deposited in
the administration, promotion and educational account at such times
and in such amounts as the commission determines to be necessary
for purposes of administering and promoting the greyhound
development program. Provided, That beginning with fiscal year one
thousand nine hundred ninety-five and in each fiscal year
thereafter in which the commission anticipates spending any money
from the account, the commission shall submit to the executive
department during the budget preparation period prior to the
Legislature convening before that fiscal year for inclusion in the
executive budget document and budget bill, the recommended
expenditures, as well as requests of appropriations for the purpose
of administration, promotion and education The commission shall
make an annual report to the Legislature on the status of the
administration, promotion and education account, including the
previous year's expenditures and projected expenditures for the
next year.
The racing commission, for the fiscal year one thousand nine
hundred ninety-four only, may expend up to thirty-five thousand
dollars from the West Virginia greyhound breeding development fund
to accomplish the purposes of this section without strictly
following the requirements in the previous paragraph.
(e) All daily license and pari-mutuel pools tax payments
required under the provisions of this section shall be made to the
racing commission or its agent after the last race of each day of
each horse or dog race meeting, and the pari-mutuel pools tax
payments shall be made from all contributions to all pari-mutuel
pools to each and every race of the day.
(f) Every association or licensee subject to the provisions of
this article, including the changed provisions of sections nine and
ten and this section of this article, shall annually submit to the
racing commission and the Legislature financial statements,
including a balance sheet, income statement, statement of change in
financial position and an audit of any electronic data system used
for pari-mutuel tickets and betting, prepared in accordance with
generally accepted auditing standards, as certified by an
experienced public accountant or a certified public accountant.
§19-23-11. Revenues from horse racing and dog racing to be paid
into an unappropriated special account to fund
commission expenses.
All revenues collected pursuant to the provisions of this
article as license taxes or pari-mutuel pools taxes on horse racing
and dog racing shall be paid by the racing commission to the state
treasurer, who shall deposit the revenues in a an unappropriated
special account to be denominated by him or her. The revenues in
the special account shall first be available to the commission to pay salaries and other budgeted expenses for the commission
associated with enforcement of this article. not to exceed the
amounts appropriated for such purposes in the budget bill for each
fiscal year Revenues in excess of the budgeted expenses of the
commission shall be accumulated and transferred to the general
revenue fund. The racing commission shall remit all collected
racing revenues to the state treasurer at least one time during
each thirty-day period of each racing season, and a final
remittance as to any particular horse race or dog race meeting
shall be made within thirty days from and after the close of each
horse race or such dog race meeting.
§9-23-13. Disposition of funds for payment of outstanding and
unredeemed pari-mutuel tickets; publication of
notice; irredeemable tickets; stake races for dog
tracks.
(a) All moneys held by any licensee for the payment of
outstanding and unredeemed pari-mutuel tickets, if not claimed
within ninety days after the close of a horse or dog race meeting
or the televised racing day, as the case may be, in connection with
which the tickets were issued, shall be turned over by the licensee
to the racing commission within fifteen days after the expiration
of the ninety-day period and the licensee shall give any
information required by the racing commission concerning the
outstanding and unredeemed tickets. The moneys shall be deposited by the racing commission in a banking institution of its choice in
an unappropriated special account to be known as "West Virginia
Racing Gaming Commission Special Account -- Unredeemed Pari-Mutuel
Tickets". Notice of the amount, date and place of each deposit
shall be given by the racing commission, in writing, to the state
treasurer. The racing commission shall then cause to be published
a notice to the holders of the outstanding and unredeemed
pari-mutuel tickets, notifying them to present their unredeemed
tickets for payment at the principal office of the racing
commission within ninety days from the date of the publication of
the notice. The notice shall be published within fifteen days
following the receipt of the outstanding and unredeemed pari-mutuel
ticket moneys by the commission from the licensee as a Class I
legal advertisement in compliance with the provisions of article
three, chapter fifty-nine of this code and the publication area for
the publication shall be the county in which the horse or dog race
meeting was held and the county in which the televised racing day
wagering was conducted in this state.
(b) Any outstanding and unredeemed pari-mutuel tickets that
are not presented for payment within ninety days from the date of
the publication of the notice are thereafter irredeemable and the
moneys theretofore held for the redemption of the pari-mutuel
tickets shall become the property of the racing commission and
shall be expended as provided in this subsection. The racing commission shall maintain separate accounts for each licensee and
shall record in each separate account the moneys turned over by the
licensee and the amount expended at the licensee's track for the
purposes set forth in this subsection. The moneys in the West
Virginia racing gaming commission special account -- unredeemed
pari-mutuel tickets shall be expended as follows:
(1) To the owner of the winning horse in any horse race at a
horse race meeting held or conducted by any licensee: Provided,
That the owner of the horse is at the time of the horse race a bona
fide resident of this state, a sum equal to ten percent of the
purse won by the horse at that race. The commission may require
proof that the owner was, at the time of the race, a bona fide
resident of this state. Upon proof by the owner that he or she
filed a personal income tax return in this state for the previous
two years and that he or she owned real or personal property in
this state and paid taxes in this state on real or personal
property for the previous two years, he or she shall be presumed to
be a bona fide resident of this state; and
(2) To the breeder (that is, the owner of the mare) of the
winning horse in any horse race at a horse race meeting held or
conducted by any licensee: Provided, That the mare foaled in this
state, a sum equal to ten percent of the purse won by the horse;
and
(3) To the owner of the stallion which sired the winning horse in any horse race at a horse race meeting held or conducted by any
licensee: Provided, That the mare which foaled the winning horse
was served by a stallion standing and registered in this state, a
sum equal to ten percent of the purse won by the horse; and
(4) To those horse racing licensees not participating in the
thoroughbred development fund authorized in section thirteen-b of
this article, the unexpended balance of the licensee's account not
expended as provided in subdivisions (1), (2) and (3) of this
subsection: Provided, That all moneys distributed under this
subdivision shall be expended solely for capital improvements at
the licensee's track: Provided, however, That the capital
improvements must be approved, in writing, by the West Virginia
racing commission before funds are expended by the licensee for
that capital improvement; and
(5) When the moneys in the special account, known as the West
Virginia racing gaming commission special account -- unredeemed
pari-mutuel tickets will more than satisfy the requirements of
subdivisions (1), (2), (3) and (4) of this subsection, the West
Virginia racing commission shall have the authority to expend the
excess moneys from unredeemed horse racing pari-mutuel tickets as
purse money in any race conditioned exclusively for West Virginia
bred or sired horses and to expend the excess moneys from
unredeemed dog racing pari-mutuel tickets in supplementing purses
and establishing stake races and dog racing handicaps at the dog tracks: Provided, That subject to the availability of funds, the
commission shall, after the requirements of subdivisions (1), (2),
(3) and (4) of this subsection have been satisfied:
(A) Transfer annually two hundred thousand dollars to the West
Virginia racing gaming commission special account -- West Virginia
greyhound breeding development fund;
(B) Transfer annually two hundred thousand dollars into a
separate account to be used for stakes races for West Virginia bred
greyhounds at dog racetracks; and
(C) Transfer annually two hundred thousand dollars to a trust
maintained and administered by the organization which is recognized
by the West Virginia racing commission, pursuant to a legislative
rule proposed for promulgation by the commission and authorized by
the Legislature, as the representative of the majority of the
active jockeys in West Virginia, for the purpose of providing
health and disability benefits to eligible active or disabled West
Virginia jockeys and their dependents in accordance with
eligibility criteria established by said organization. For
purposes of this section in determining health benefits, an
eligible active jockey is one who rides at least one hundred mounts
per calendar year of which fifty-one must be in the state of West
Virginia: Provided, That a jockey is not eligible for health
benefits if he or she receives health benefits from any other
state; and
(D) After all payments to satisfy the requirements of (A), (B)
and (C) of this proviso have been satisfied, the commission shall
have authority to transfer one hundred fifty thousand dollars left
from all uncashed pari-mutuel tickets to the trust maintained and
administered by the organization which is recognized by the West
Virginia racing gaming commission, pursuant to legislative rule
proposed for promulgation by the commission and authorized by the
Legislature as the representative of the majority of the active
jockeys in West Virginia.
(c) The commission shall submit to the legislative auditor a
quarterly report and accounting of the income, expenditures and
unobligated balance in the special account created by this section
known as the West Virginia racing gaming commission special account
-unredeemed pari-mutuel tickets.
(d) Nothing contained in this article shall prohibit one
person from qualifying for all or more than one of the aforesaid
awards or for awards under section thirteen-b of this article.
(e) The cost of publication of the notice provided for in this
section shall be paid from the funds in the hands of the state
treasurer collected from the pari-mutuel pools' tax provided for in
section ten of this article, when not otherwise provided in the
budget; but no such costs shall be paid unless an itemized account
thereof, under oath, be first filed with the state auditor.
§19-23-13b. West Virginia thoroughbred development fund; distribution; restricted races; nonrestricted purse
supplements; preference for West Virginia
accredited thoroughbreds.
(a) The
racing
racing
gaming commission special account -- West Virginia thoroughbred
development fund." Notice of the amount, date and place of the
deposit shall be given by the racing commission, in writing, to the
state treasurer. The purpose of the fund is to promote better
breeding and racing of thoroughbred horses in the state through
awards and purses for accredited breeders/raisers, sire owners and
thoroughbred race horse owners. A further objective of the fund is
to aid in the rejuvenation and development of the present horse
tracks now operating in West Virginia for capital improvements,
operations or increased purses: Provided, That five percent of the
deposits required to be withheld by an association or licensee in
subsection (b), section nine of this article shall be placed in an
unappropriated special revenue account hereby created in the state
treasury called the "administration and promotion account."
(b) The racing commission is authorized to expend the moneys
deposited in the administration and promotion account at times and
in amounts as the commission determines to be necessary for purposes of administering and promoting the thoroughbred
development program. Provided, That during any fiscal year in
which the commission anticipates spending any money from the
account, the commission shall submit to the executive department
during the budget preparation period prior to the Legislature
convening before that fiscal year for inclusion in the executive
budget document and budget bill the recommended expenditures, as
well as requests of appropriations for the purpose of
administration and promotion of the program The commission shall
make an annual report to the Legislature on the status of the
administration and promotion account, including the previous year's
expenditures and projected expenditures for the next year.
(c) The fund and the account established in subsection (a) of
this section shall operate on an annual basis.
(d) Funds in the thoroughbred development fund shall be
expended for awards and purses except as otherwise provided in this
section. Annually, the first three hundred thousand dollars of the
fund shall be available for distribution for stakes races. One of
the stakes races shall be the West Virginia futurity and the second
shall be the Frank Gall memorial stakes. The remaining races may
be chosen by the committee set forth in subsection (g) of this
section.
(e) Awards and purses shall be distributed as follows:
(1) The breeders/raisers of accredited thoroughbred horses that earn a purse at any West Virginia meet shall receive a bonus
award calculated at the end of the year as a percentage of the fund
dedicated to the breeders/raisers, which shall be sixty percent of
the fund available for distribution in any one year. The total
amount available for the breeders'/raisers' awards shall be
distributed according to the ratio of purses earned by an
accredited race horse to the total amount earned in the races by
all accredited race horses for that year as a percentage of the
fund dedicated to the breeders/raisers. However, no breeder/raiser
may receive from the fund dedicated to breeders'/raisers' awards an
amount in excess of the earnings of the accredited horse at West
Virginia meets. In addition, should a horse's breeder and raiser
qualify for the same award on the same horse, they will each be
awarded one half of the proceeds. The bonus referred to in this
subdivision (1) may only be paid on the first one hundred thousand
dollars of any purse, and not on any amounts in excess of the first
one hundred thousand dollars.
(2) The owner of a West Virginia sire of an accredited
thoroughbred horse that earns a purse in any race at a West
Virginia meet shall receive a bonus award calculated at the end of
the year as a percentage of the fund dedicated to sire owners,
which shall be fifteen percent of the fund available for
distribution in any one year. The total amount available for the
sire owners' awards shall be distributed according to the ratio of purses earned by the progeny of accredited West Virginia stallions
in the races for a particular stallion to the total purses earned
by the progeny of all accredited West Virginia stallions in the
races. However, no sire owner may receive from the fund dedicated
to sire owners an amount in excess of thirty-five percent of the
accredited earnings for each sire. The bonus referred to in this
subdivision (2) shall only be paid on the first one hundred
thousand dollars of any purse, and not on any amounts in excess of
the first one hundred thousand dollars.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any race at a West Virginia meet shall receive a
restricted purse supplement award calculated at the end of the
year, which shall be twenty-five percent of the fund available for
distribution in any one year, based on the ratio of the earnings in
the races of a particular race horse to the total amount earned by
all accredited race horses in the races during that year as a
percentage of the fund dedicated to purse supplements. However,
the owners may not receive from the fund dedicated to purse
supplements an amount in excess of thirty-five percent of the total
accredited earnings for each accredited race horse. The bonus
referred to in this subdivision shall only be paid on the first one
hundred thousand dollars of any purse, and not on any amounts in
excess of the first one hundred thousand dollars.
(4) In no event may purses earned at a meet held at a track which did not make a contribution to the thoroughbred development
fund out of the daily pool on the day the meet was held qualify or
count toward eligibility for an award under this subsection.
(5) Any balance in the breeders/raisers, sire owners and purse
supplement funds after yearly distributions shall first be used to
fund the races established in subsection (g) of this section. Any
amount not so used shall revert back into the general account of
the thoroughbred development fund for distribution in the next
year.
Distribution shall be made on the fifteenth day of each
February for the preceding year's achievements.
(f) The remainder, if any, of the thoroughbred development
fund that is not available for distribution in the program provided
for in subsection (e) of this section in any one year is reserved
for regular purses, marketing expenses and for capital improvements
in the amounts and under the conditions provided in this subsection
(f).
(1) Fifty percent of the remainder shall be reserved for
payments into the regular purse fund established in subsection (b),
section nine of this article.
(2) Up to five hundred thousand dollars per year shall be
available for:
(A) Capital improvements at the eligible licensed horse racing
tracks in the state; and
(B) Marketing and advertising programs above and beyond two
hundred fifty thousand dollars for the eligible licensed horse
racing tracks in the state: Provided, That moneys shall be
expended for capital improvements or marketing and advertising
purposes as described in this subsection only in accordance with a
plan filed with and receiving the prior approval of the racing
commission, and on a basis of fifty percent participation by the
licensee and fifty percent participation by moneys from the fund,
in the total cost of approved projects: Provided, however, That
funds approved for one track may not be used at another track
unless the first track ceases to operate or is viewed by the
commission as unworthy of additional investment due to financial or
ethical reasons.
(g)(1) Each pari-mutuel thoroughbred horse track shall provide
at least one restricted race per two racing days.
(2) The restricted races established in this subsection shall
be administered by a three-member committee consisting of:
(A) The racing secretary director or his or her designee;
(B) A member appointed by the authorized representative of a
majority of the owners and trainers at the thoroughbred track; and
(C) A member appointed by a majority of the thoroughbred
breeders.
(3) The purses for the restricted races established in this
subsection shall be twenty percent larger than the purses for similar type races at each track.
(4) Restricted races shall be funded by each racing
association from:
(A) Moneys placed in the general purse fund up to a maximum of
three hundred fifty thousand dollars per year.
(B) Moneys as provided in subdivision (5), subsection (e) of
this section, which shall be placed in a an unappropriated special
fund called the "West Virginia accredited race fund."
(5) The racing schedules, purse amounts and types of races are
subject to the approval of the West Virginia racing commission.
(h) As used in this section, "West Virginia bred-foal" means
a horse that was born in the state of West Virginia.
(i) To qualify for the West Virginia accredited race fund, the
breeder must qualify under one of the following:
(1) The breeder of the West Virginia bred-foal is a West
Virginia resident;
(2) The breeder of the West Virginia bred-foal is not a West
Virginia resident, but keeps his or her breeding stock in West
Virginia year-round; or
(3) The breeder of the West Virginia bred-foal is not a West
Virginia resident and does not qualify under subdivision (2) of
this subsection, but either the sire of the West Virginia bred-foal
is a West Virginia stallion, or the mare is covered by a West
Virginia stallion following the birth of that West Virginia bred-foal.
(j) No association or licensee qualifying for the alternate
tax provision of subsection (b), section ten of this article is
eligible for participation in any of the provisions of this
section: Provided, That the provisions of this subsection do not
apply to a thoroughbred race track at which the licensee has
participated in the West Virginia thoroughbred development fund for
a period of more than four consecutive calendar years prior to the
thirty-first day of December, one thousand nine hundred ninety-two.
(k) From the first day of July, two thousand one, West
Virginia accredited thoroughbred horses have preference for entry
in all accredited races at a thoroughbred race track at which the
licensee has participated in the West Virginia thoroughbred
development fund for a period of more than four consecutive
calendar years prior to the thirty-first day of December, one
thousand nine hundred ninety-two.
§19-23-16. Entry of order suspending or revoking license or
permit; service of order; contents; hearing;
decision to be in writing.
(a) Whenever the racing commission shall deny an application
for a license or a permit or shall suspend or revoke a license or
a permit, it shall make and enter an order to that effect and serve
a copy thereof on the applicant, licensee or permit holder, as the
case may be, in any manner in which a summons may be served in a civil action or by certified mail, return receipt requested. Such
order shall state the grounds for the action taken, and in the case
of an order of suspension or revocation, shall state the effective
date of such suspension or revocation.
(b) Whenever a majority of the stewards at any horse or dog
race meeting shall suspend or revoke a permit, such suspension or
revocation shall be effective immediately. The stewards shall, as
soon as thereafter practicable, make and enter an order to that
effect and serve a copy thereof on the permit holder, in any manner
in which a summons may be served in a civil action or by certified
mail, return receipt requested. Such order shall state the grounds
for the action taken.
(c) Any person adversely affected by any such order shall be
entitled to a hearing thereon if, within twenty days after service
of a copy thereof if served in any manner in which a summons may be
served as aforesaid or within twenty days after receipt of a copy
thereof if served by certified mail as aforesaid, such person files
with the racing commission a written demand for such hearing. A
demand for hearing shall operate automatically to stay or suspend
the execution of any order suspending or revoking a license, but a
demand for hearing shall not operate to stay or suspend the
execution of any order suspending or revoking a permit. The racing
commission may require the person demanding such hearing to give
reasonable security for the costs thereof and if such person does not substantially prevail at such hearing such costs shall be
assessed against such person and may be collected by an action at
law or other proper remedy.
(d) Upon receipt of a written demand for such hearing, the
racing commission shall set a time and place therefor not less than
ten and not more than thirty days thereafter. Any scheduled
hearing may be continued by the racing commission upon its own
motion or for good cause shown by the person demanding the hearing.
(e) All of the pertinent provisions of article five chapter
twenty-nine-a of this code shall apply to and govern the hearing
and the administrative procedures in connection with and following
such hearing, with like effect as if the provisions of said article
five were set forth in this subsection.
(f) Any such hearing shall be conducted by a quorum of the
racing commission or by a hearing examiner appointed by the
commission. For the purpose of conducting any such hearing, any
member of the racing commission or a hearing examiner appointed by
the commission shall have the power and authority to issue
subpoenas and subpoenas duces tecum as provided for in section six
of this article. Any such subpoenas and subpoenas duces tecum
shall be issued and served within the time, for the fees and shall
be enforced, as specified in section one, article five of said
chapter twenty-nine a, and all of the said section one provisions
dealing with subpoenas and subpoenas duces tecum shall apply to subpoenas and subpoenas duces tecum issued for the purpose of a
hearing hereunder.
(g) At any such hearing the person who demanded the same may
represent such person's own interest or be represented by an
attorney-at-law admitted to practice before the circuit court of
this state. Upon request by the racing commission director of the
state gaming agency, it he or she shall be represented at any such
hearing by the attorney general or his assistants without
additional compensation. The racing commission director of the
state gaming agency, with the written approval of the attorney
general, may employ special counsel to represent the racing
commission gaming agency at any such hearing.
(h) After any such hearing and consideration of all of the
testimony, evidence and record in the case, or after receiving the
proposed findings of fact and conclusions of law of a hearing
examiner appointed by the commission, the racing commission shall
render its decision in writing. The written decision of the racing
commission shall be accompanied by findings of fact and conclusions
of law as specified in section three, article five, chapter
twenty-nine-a of this code, and a copy of such decision and
accompanying findings and conclusions shall be served by certified
mail, return receipt requested, upon the person demanding such
hearing, and his or her attorney of record, if any.
(i) The decision of the racing commission shall be final unless reversed, vacated or modified upon judicial review thereof
in accordance with the provisions of section seventeen of this
article.
§19-23-28. Effect of article on existing rules, licenses and
permits.
All rules and regulations promulgated by the racing commission
and in effect on the effective date of this article section as
amended in the year two thousand three shall remain in full force
and effect until superseded, or except as amended or repealed, in
accordance with the provisions of this article.
Any license or permit issued by the racing commission under
the former provisions of article twenty-three of this chapter,
prior to the effective date of this section in the year two
thousand three, which has not expired and which had not been
suspended or revoked prior to the effective date of the amendments
to this article section in the year two thousand three, shall be
governed by the provisions of this article and shall remain valid
until the expiration thereof, unless such license or permit is
sooner suspended or revoked in accordance with the provisions of
this article.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE GAMING ACT.
§29-22-1. Short title.
This article shall be known and may be cited as the "State Lottery Gaming Act."
§29-22-2. Legislative findings and intent.
The Legislature finds and declares that the purpose of this
article is to administer and regulate all legal gaming activities
including, but not limited to, pari-mutuel racing activities under
provisions of article twenty-three, chapter nineteen of this code,
charitable gaming under articles twenty, twenty-one and
twenty-three, chapter forty-seven of this code, operation of
state-owned lotteries under this article, regulation of racetrack
video established and implement a state-operated lottery under
article twenty-two-a of this chapter, regulation of limited video
lottery games under article twenty-two-b of this chapter, and
regulation of one limited gaming facility under article
twenty-five, chapter twenty-nine of this chapter by the supervision
of the state lottery gaming commission and the director of the
state lottery office gaming agency who shall be appointed by the
governor and hold broad authority to administer and regulate the
system legal gaming in a manner which will provide the state with
a highly efficient operation.
§29-22-3. Definitions.
(a) "State lottery gaming commission" or "commission" means
the state lottery gaming commission created by this article.
(b) "Director" means the individual appointed by the governor
to provide management and administration necessary to direct the state lottery office gaming agency.
(c) "Lottery" means the public gaming systems or games
established and operated by the state lottery office gaming agency.
(d) "Lottery tickets" or "tickets" means tickets or other
tangible evidence of participation used in lottery games or gaming
systems.
§29-22-4. State gaming commission created; composition;
qualifications; appointment; terms of office;
chairman's removal; vacancies; compensation and
expenses; quorum, oath and bond.
(a) There is hereby created a state lottery gaming commission
which shall consist of seven members, all residents and citizens of
the state, one who shall be a lawyer, one who shall be a certified
public accountant, one who shall be a computer expert, one who
shall have not less than five years experience in law enforcement,
one who shall have not less than five years experience in
agriculture or veterinary medicine, and one who shall be qualified
by experience and training in the field of marketing. The two
remaining members member shall be representative of the public at
large. The commission shall carry on a continuous study and
investigation of the lottery gambling activities throughout the
state and advise and assist the director. of the state lottery
The commission members shall be appointed by the governor, by and
with the advice and consent of the Senate, no later than the first day of July, one thousand nine hundred eighty-five. The terms of
members first appointed expire as designated by the governor at the
time of appointment: One at the end of one year; two at the end of
two years; one at the end of three years; two at the end of four
years; and one at the end of five years. Upon the reenactment of
this article as the gaming act, the existing members of the lottery
commission then serving shall be reappointed for the remainder of
their respective terms, and one of the two at-large members will
become the member whose background must be in agriculture or
veterinary medicine. Upon the effective date of this section, As
vacancies occur, appointments to fill vacancies shall be made so
that at least two members are appointed from each congressional
district existing as of the first day of January, one two thousand
three. nine hundred ninety-three No more than four members of
such commission shall belong to the same political party. Members
serve overlapping terms of five years and are eligible for
successive appointments to the commission. On the first day of
July of each year, the commission shall select a chairman from its
membership. The governor may remove any commission member for
cause, notwithstanding the provisions of section four, article six,
chapter six of this code. Vacancies shall be filled in the same
manner as the original appointment but only for the remainder of
the term. No person convicted of a felony or crime involving moral
turpitude shall be eligible for appointment nor appointed as a commissioner.
(b) The board gaming agency shall pay each member the same
compensation as is paid to members of the Legislature for their
interim duties as recommended by the citizens legislative
compensation commission and authorized by law for each day or
portion thereof engaged in the discharge of official duties and
shall reimburse each member for actual and necessary expenses
incurred in the discharge of official duties: Provided, That the
per mile rate to be reimbursed shall be the same rate as authorized
for members of the Legislature. All such payments shall be made
from the state lottery gaming fund.
(c) At least one meeting per month shall be held by the
commission. Additional meetings may be held at the call of the
chairman, director or majority of the commission members.
(d) A majority of the appointed members constitutes a quorum
for the transaction of business, and all actions require a majority
vote of the members present.
(e) Before entering upon the discharge of the duties as
commissioner, each commissioner shall take and subscribe to the
oath of office prescribed in section five, article IV of the
constitution of West Virginia and shall enter into a bond in the
penal sum of one hundred thousand dollars with a corporate surety
authorized to engage in business in this state, conditioned upon
the faithful discharge and performance of the duties of the office. The executed oath and bond shall be filed in the office of the
secretary of state.
§29-22-5. State gaming commission; powers and duties with respect
to lotteries; cooperation of other agencies.
(a) The commission shall have the authority to:
(1) Promulgate rules in accordance with chapter twenty-nine-a
of this code: Provided, That those rules promulgated by the
commission that are necessary to begin the lottery games selected
shall be exempted from the provisions of chapter twenty-nine-a of
this code in order that the selected games may commence as soon as
possible;
(2) Establish rules for conducting lottery games, a manner of
selecting the winning tickets and manner of payment of prizes to
the holders of winning tickets;
(3) Select the type and number of public gaming systems or
games, to be played in accordance with the provisions of this
article;
(4) Contract, if deemed desirable, with the educational
broadcasting authority to provide services through its microwave
interconnection system to make available to public broadcasting
stations servicing this state, and, at no charge, for rebroadcast
to commercial broadcasting stations within this state, any public
gaming system or games drawing;
(5) Enter into interstate and international lottery agreements with other states in foreign countries or any combination of one or
more state and one or more foreign countries;
(6) Adopt an official seal;
(7) Maintain a principal office, and, if necessary, regional
suboffices at locations properly designated or provided;
(8) Prescribe a schedule of fees and charges;
(9) Sue and be sued;
(10) Lease, rent, acquire, purchase, own, hold, construct,
equip, maintain, operate, sell, encumber and assign rights of any
property, real or personal, consistent with the objectives of the
commission as set forth in this article;
(11) Designate one of the deputy directors to serve as acting
director during the absence of the director;
(12) Hold hearings on any matter of concern to the commission
relating to the lottery, subpoena witnesses, administer oaths, take
testimony, require the production of evidence and documentary
evidence and designate hearing examiners and employees to so act;
and
(13) To make and enter into all agreements and do all acts
necessary or incidental to the performance of its duties and the
exercise of its powers under this article.
(b) Departments, boards, commissions or other agencies of this
state shall provide assistance to the state lottery office gaming
agency upon the request of the director.
(c) Upon the request of the deputy director for the security
and licensing division in conjunction with the director, the
attorney general, department of public safety the West Virginia
state police and all other law-enforcement agencies shall furnish
to the director and the deputy director such information as may
tend to assure the security, honesty, fairness and integrity in the
operation and administration of the lottery as they may have in
their possession, including, but not limited to, manual or
computerized information and data. The director is to designate
such employees of the security and licensing division as may be
necessary to act as enforcement agents. Such agents are authorized
to investigate complaints made to the commission of the state
lottery office concerning possible violation of the provisions of
this article and determine whether to recommend criminal
prosecution. If it is determined that action is necessary, an
agent, after approval of the director, is to make such
recommendation to the prosecuting attorney in the county wherein
the violation occurred or to any appropriate law-enforcement
agency.
(d) The commission shall have full jurisdiction over and shall
supervise all horse race meetings, all dog race meetings and all
persons involved in the holding or conducting of horse or dog race
meetings, and, in this regard, it shall have plenary power and
authority:
(1) To investigate applicants and determine the eligibility of
the applicants for a license or permit or construction permit under
the provisions of article twenty-three, chapter nineteen of this
code;
(2) To fix, from time to time, the annual fee to be paid to
the commission for any permit required under the provisions of
section two of article twenty-three, chapter nineteen of this code;
(3) To promulgate procedural, interpretive, and legislative
rules clarifying, explaining, implementing and making effective the
provisions of article twenty-three, chapter nineteen of this code
and the powers and authority conferred and the duties imposed upon
the commission under the provisions of said article twenty-three,
including, but not limited to, reasonable rules under which all
horse races, dog races, horse race meetings and dog race meetings
shall be held and conducted, which rules shall be promulgated in
accordance with the provisions of article three, chapter
twenty-nine-a of this code;
(4) To register colors and assumed names and to fix, from time
to time, the annual fee to be paid to the commission under article
twenty-three of said chapter nineteen for any such registration;
(5) To fix and regulate the minimum purse to be offered during
any horse or dog race meeting;
(6) To fix a minimum and a maximum number of horse races or
dog races to be held on any respective racing day;
(7) To enter the office, horse racetrack, dog racetrack,
kennel, facilities and other places of business of any licensee to
determine whether the provisions of article twenty-three of said
chapter nineteen and its reasonable rules are being complied with,
and for this purpose, the commission, its director and
representatives and employees of the gaming agency may visit,
investigate and have free access to any such office, horse
racetrack, dog racetrack, kennel, facilities and other places of
business;
(8) To investigate alleged violations of the provisions of
this article twenty-three, chapter nineteen of this code, its
reasonable rules, orders and final decisions and to take
appropriate disciplinary action against any licensee or permit
holder or construction permit holder for the violation thereof or
institute appropriate legal action for the enforcement thereof or
take such disciplinary action and institute such legal action;
(9) By reasonable rules, to authorize stewards, starters and
other racing officials to impose reasonable fines or other
sanctions upon any person connected with or involved in any horse
or dog racing or any horse or dog race meeting; and to authorize
stewards to rule off the grounds of any horse or dog racetrack any
tout, bookmaker or other undesirable individual deemed inimical to
the best interests of horse and dog racing or the pari-mutuel
system of wagering in connection therewith;
(10) To require at any time the removal of any racing official
or racing employee of any licensee, for the violation of any
provision of this article, any reasonable rule of the commission or
for any fraudulent practice;
(11) To acquire, establish, maintain and operate, or to
provide by contract for the maintenance and operation of, a testing
laboratory and related facilities, for the purpose of conducting
saliva, urine and other tests on the horse or dog or horses or dogs
run or to be run in any horse or dog race meeting, and to purchase
or lease all equipment and supplies deemed necessary or desirable
in connection with the acquisition, establishment, maintenance and
operation of any such testing laboratory and related facilities and
all such tests;
(12) To hold up, in any disputed horse or dog race, the
payment of any purse, pending a final determination of the results
thereof;
(13) To require each licensee under article twenty-three of
said chapter nineteen to file an annual balance sheet and profit
and loss statement pertaining to the licensee's horse or dog racing
activities in this state, together with a list of each licensee's
stockholders or other persons having any beneficial interest in the
horse or dog racing activities of the licensee;
(14) To issue subpoenas for the attendance of witnesses and
subpoenas duces tecum for the production of any books, records and other pertinent documents, and to administer oaths and affirmations
to such witnesses, whenever, in the judgment of the commission, it
is necessary to do so for the effective discharge of its duties
under the provisions of this article and article twenty-three of
said chapter nineteen;
(15) To keep accurate and complete records of its proceedings
and to certify the same as may be appropriate;
(16) To take such other action as may be reasonable or
appropriate to effectuate the provisions of article twenty-three of
said chapter nineteen and this article as it applies to said
article twenty-three and its reasonable rules;
(17) To provide breeders' awards, purse supplements and moneys
for capital improvements at racetracks in compliance with section
thirteen-b, article twenty-three of said chapter nineteen; and
(18) The commission may, upon request of a party, mediate on
site, a dispute existing between the race track licensees' located
in this state and representatives of a majority of the horse owners
and trainers licensed at the track, which threaten to disrupt any
scheduled racing event or events. The commission may, upon the
request of a party, mediate on site, a dispute existing between
racetrack licensees and representatives of pari-mutuel clerks which
threaten to disrupt any scheduled racing event or events. When a
request for mediation is made, the commission may designate a
person to act as mediator in each such dispute that arises. Each opposing party involved in any dispute shall negotiate in good
faith with the goal of reaching a fair and mutual resolution. The
mediator may issue recommendations designed to assist each side
toward reaching a fair compromise: Provided, That no owner or
operator of any horse owner or trainer or any pari-mutuel clerk
licensed at the track may be required to abide by any
recommendation made by any mediator acting pursuant to this
subsection.
The commission shall not interfere in the internal business or
internal affairs of any licensee.
(e) Investigators employed by the commission, when designated
by the director, shall have all the lawful powers delegated to
members of the West Virginia state police, except the power to
carry firearms and shall have the authority to enforce the
provisions of this article, article twenty-three, chapter nineteen,
articles twenty-two-a, twenty-two-b and twenty-five of this
chapter, and articles twenty, twenty-one and twenty-three, chapter
forty-seven of this code, and the criminal provisions of any other
article of this code to which this article applies, in any county
or municipality of this state. The director shall establish such
additional standards as he or she considers applicable or
necessary. Any employee shall, before entering upon the discharge
of his or her duties, execute a bond with security in the sum of
three thousand five hundred dollars, payable to the state of West Virginia, conditioned for the faithful performance of the
employee's duties and the bond shall be approved as to form by the
attorney general and shall be filed with the secretary of state for
preservation in that office. The West Virginia state police, any
county sheriff or deputy sheriff and any municipal police officer
upon request by the director is hereby authorized to assist the
director in enforcing the provisions of this article, article
twenty-three, chapter nineteen, articles twenty-two-a, twenty-two-b
and twenty-five of this chapter, and articles twenty, twenty-one
and twenty-three, chapter forty-seven of this code, and any
criminal penalty provision of any article of this code to which
this article applies.
(f) Notwithstanding the provisions of article three, chapter
seventeen-a of this code, upon application by the director and
payment of fees, the commissioner of motor vehicles shall issue a
maximum of six Class A license plates to be used on state owned or
leased vehicles assigned to investigators employed by the
commission.
§29-22-6. Director; appointment; qualifications; oath and bond;
salary.
(a) There is hereby created the position of the lottery
director of the state gaming agency whose duties include the
management and administration of the state lottery office gaming
agency. The director shall be qualified by training and experience to direct the operations and regulatory oversight of the lottery
agency, and shall be appointed within ninety days of the effective
date of this article by the governor and shall serve at the will
and pleasure of the governor. No person shall be appointed as
director who has been convicted of a felony or crime involving
moral turpitude. On the effective date of the reenactment of this
section in the year two thousand three, the person appointed to be
the director of the state lottery office shall continue in office
as the director of the state gaming agency until a successor is
appointed and qualified.
(b) The director serves on a full-time basis and may not be
engaged in any other profession or occupation.
(c) The director:
(1) Shall have a good reputation, particularly as a person of
honesty and integrity, and shall favorably pass a thorough
background investigation prior to appointment;
(2) The director shall not hold any other political office in
the government of the state either by election or appointment while
serving as director;
(3) The director shall be a citizen of the United States and
must become a resident of the state within ninety days of
appointment.
(4) The director shall receive an annual salary as provided
for by the governor; and
(5) The director and his or her executive secretary are
ineligible for civil service coverage as provided in section four,
article six, chapter twenty-nine of this code.
(d) Before entering upon the discharge of the duties as
director, the director shall take and subscribe to the oath of
office prescribed in section 5, article IV of the constitution of
West Virginia and shall enter into a bond in the penal sum of one
hundred thousand dollars with a corporate surety authorized to
engage in business in this state, conditioned upon the faithful
discharge and performance of the duties of the office. The
executed oath and bond shall be filed in the office of the
secretary of state.
§29-22-7. Divisions of the state gaming agency.
There shall be established within the state lottery office
gaming control agency a security and licensing racing division; a
personnel, data processing, accounting and administration and a
marketing, education and information charitable gaming division,
and such other divisions as the commission from time to time may
authorize. Each division shall be under the supervision of a
deputy director who shall administer and coordinate the operation
of authorized activities in the respective division. Each deputy
director shall have had three years management experience in areas
pertinent to his prospective responsibilities and an additional
three years of experience in the same field.
§29-22-8. Director; powers and duties; deputy directors; hiring of
staff; civil service coverage.
(a) The director shall have the authority to:
(1) Appoint, with the approval of the commission, a deputy
director for each of the divisions established in this article and
by the commission. The deputy directors appointed shall serve at
the will and pleasure of the director at an annual salary
established by the director and approved by the commission.
Deputy directors shall not be eligible for civil service
coverage as provided in section four, article six, chapter
twenty-nine of this code;
(2) The director shall hire pursuant to the approval of the
commission, such professional, clerical, technical and
administrative personnel as may be necessary to carry out the
provisions of this article as well as article twenty three, chapter
nineteen of this code, articles twenty-two-a, twenty two-b and
twenty five of this chapter, and articles twenty, twenty-one and
twenty-three, chapter forty-seven of this code. No person shall be
employed by the lottery agency who has been convicted of a felony
or other crime involving moral turpitude. Each person employed by
the commission agency shall execute an authorization to allow an
investigation of that person's background;
(3) Designate the number and types of locations at which
lottery tickets may be sold or authorized games may be played.
(b) Effective the first day of July, one thousand nine hundred
eighty-six, All employees of the commission, except as otherwise
provided herein in this article or in section five, article
twenty-three, chapter nineteen of this code, shall be in the
classified service under the provisions of article six, chapter
twenty-nine of this code.
(c) The director shall, pursuant to the approval of the
commission, prepare and submit the annual proposed appropriations
for the commission to the governor.
§29-22-19. Post audit of accounts and transactions of office.
Before the first day of July, two thousand one and at least
every two fiscal years thereafter, the legislative auditor shall
conduct a post audit of all accounts and transactions of the state
lottery office gaming agency. The cost of the audit shall be paid
out of the state lottery gaming fund moneys designated for payment
of operating expenses. The commission shall have an annual audit
performed by an independent certified public accountant, and the
audits may be accepted by the legislative auditor in lieu of
performance of its post audit.
§29-22-26. Continuation of state gaming commission.
After having conducted a performance audit through its joint
committee on government operations, pursuant to section nine,
article ten, chapter four of this code, the Legislature hereby
finds and declares that the state lottery gaming commission should be continued and reestablished. Accordingly, notwithstanding the
provisions of section four, article ten, chapter four of this code,
the state lottery gaming commission shall continue to exist until
the first day of July, one thousand nine hundred ninety-eight two
thousand five.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-3a. Additional definitions.
(a) The terms "commission," "state lottery commission," and
"West Virginia lottery commission" as used in this article shall,
after the thirtieth day of June, two thousand three, mean the state
gaming commission created by article twenty-two of this chapter.
(b) The term "director" as used in this article shall, after
the thirtieth day of June, two thousand three, mean the individual
appointed by the governor to provide management and administration
necessary to direct the state gaming agency.
(c) The term "lottery office" as used in this article shall,
after the thirtieth day of June, two thousand three, mean the state
gaming agency.
(d) The terms "racing commission" and "West Virginia racing
commission" as used in this article shall, after the thirtieth day
of June, two thousand three, mean the state gaming commission.
ARTICLE 22B. LIMITED VIDEO LOTTERY.
§29-22B-306. Commission or state gaming commission defined.
"Commission" or "state lottery commission" means the West Virginia lottery commission created by article twenty-two of this
chapter: Provided, That after the thirtieth day of June, two
thousand two, these terms shall mean the state gaming commission
created by article twenty-two of this chapter.
§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 Provided, That after the thirtieth day of
June, two thousand three, the term "state lottery office" as used
in this article shall mean the state gaming agency.
§29-22B-335. West Virginia racing commission defined.
After the thirtieth day of June, two thousand three, the terms
"West Virginia racing commission" and "racing commission" as used
in this article shall mean the state gaming commission.
ARTICLE 25. AUTHORIZED GAMING FACILITY.
§29-25-2a. Additional definitions.
After the thirtieth day of June, two thousand three, the terms
"commission," "lottery commission", "state lottery commission" and
"West Virginia lottery commission" as used in this article shall
mean the state gaming commission created in article twenty-two of
this chapter, and the terms "director" and "director of the lottery
office" shall mean the director of the state gaming agency.
CHAPTER 47. REGULATION OF TRADE.
ARTICLE 20. CHARITABLE BINGO.
§47-20-1a. Powers and duties transferred to state gaming
commission.
Effective the first day of July, two thousand three, the
powers and duties of the tax commissioner under this article,
including, but not limited to, the tax commissioner's authority to
investigate and audit for compliance with this article are
transferred to the state gaming commission created in article
twenty-two, chapter twenty-nine of this code, and, as delegated by
the commission, to the director of the state gaming agency.
§47-20-1b. Effect of transfer on existing rules, licenses and
permits.
All rules promulgated by the tax commissioner and in effect on
the effective date of section one-a of this article shall remain in
full force and effect until superseded, or except as amended or
repealed, in accordance with the provisions of this article.
Any license or permit issued by the tax commissioner under the
provisions of this article prior to the first day of July, two
thousand three, which has not expired and which had not been
suspended or revoked prior to the first day of July, two thousand
three shall remain valid until the expiration thereof, unless such
license or permit is sooner suspended or revoked in accordance with
the provisions of this article.
ARTICLE 21. CHARITABLE RAFFLES.
§47-21-1a. Powers and duties transferred to state gaming commission.
Effective the first day of July, two thousand three, the
powers and duties of the tax commissioner under this article,
including, but not limited to, the tax commissioner's authority to
investigate and audit for compliance with this article are
transferred to the state gaming commission created in article
twenty-two, chapter twenty-nine of this code, and, as delegated by
the commission, to the director of the state gaming agency.
§47-21-1b. Effect of transfer on existing rules, licenses and
permits.
All rules promulgated by the tax commissioner and in effect on
the effective date of section one-a of this article shall remain in
full force and effect until superseded, or except as amended or
repealed, in accordance with the provisions of this article.
Any license or permit issued by the tax commissioner under the
provisions of this article prior to the first day of July, two
thousand three, which has not expired and which had not been
suspended or revoked prior to the first day of July, two thousand
three shall remain valid until the expiration thereof, unless such
license or permit is sooner suspended or revoked in accordance with
the provisions of this article.
ARTICLE 23. CHARITABLE RAFFLE BOARDS AND GAMES.
§47-23-1a. Powers and duties transferred to state gaming
commission.
Effective the first day of July, two thousand three, the
powers and duties of the tax commissioner under this article,
including, but not limited to, the tax commissioner's authority to
investigate and audit for compliance with this article are
transferred to the state gaming commission created in article
twenty-two, chapter twenty-nine of this code, and, as delegated by
the commission, to the director of the state gaming agency.
§47-23-1b. Effect of transfer on existing rules, licenses and
permits.
All rules promulgated by the tax commissioner and in effect on
the effective date of section one-a of this article shall remain in
full force and effect until superseded, or except as amended or
repealed, in accordance with the provisions of this article.
Any license or permit issued by the tax commissioner under the
provisions of this article prior to the first day of July, two
thousand three, which has not expired and which had not been
suspended or revoked prior to the first day of July, two thousand
three shall remain valid until the expiration thereof, unless such
license or permit is sooner suspended or revoked in accordance with
the provisions of this article.
NOTE: The purpose of this bill is to consolidate all
gambling-related functions under the Cabinet Secretary of the
Department of Tax and Revenue into a single gaming commission.
Strike-throughs indicate language that is would be stricken
from current law and underscoring indicates new language that would
be added.
§29-22A-3a; §29-22B-335; §29-25-2a; §§47-20-1a and 1b;
§§47-21-1a and 1b; §47-23-1a and 1b are new; therefore,
strike-throughs and underscoring have been omitted.