COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 153
(By Senators Tomblin, Mr. President, and Sprouse, By Request of
the Executive)
____________
[Originating in the Committee on Government Organization;
reported February 20, 2003.]
____________
A BILL to amend chapter twenty-nine of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article twenty-nine,
relating to legal gaming; creating a division of gaming;
transferring all legal gaming activities, powers, funds and
functions to the division; definitions; transferring the
racing commission and the lottery commission to the division;
adding the regulation of all legal gaming activities, except
racing activities, to the duties of the lottery commission;
division's powers and duties; transition provisions; gaming
director; director's powers and duties; and continuing the
division.
Be it enacted by the Legislature of West Virginia:
That chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding
thereto a new article, designated article twenty-nine, to read as
follows:
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 29. DIVISION OF GAMING.
§29-29-1. Legislative findings.
(a) The Legislature finds
that
dog and horse racing
, the
state-owned
lottery, racetrack video lottery
, limited video lottery
games, gaming facilities, charitable
bingo, charitable
raffles, and
charitable
raffle boards and games are all activities of a similar
nature
, are all legal gaming activities and that the people of West
Virginia would be better served if these legal gaming
activities
were regulated by one single agency.
(b) Therefore, the Legislature hereby creates the division of
gaming to regulate the following legal gaming activities in West
Virginia:
(1) Horse and dog racing activities as set out under the
provisions of article twenty-three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of
article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of
article twenty-two-a of this chapter;
(4)
Limited video lottery as set out under the provisions of
article twenty-two-b of this chapter;
(5)
Gaming facilities as set out under the provisions of
article twenty-five of this chapter;
(6)
Charitable bingo as set out under the provisions of
article twenty, chapter forty-seven of this code
;
(7)
Charitable raffles as set out under the provisions of
article twenty-one, chapter forty-seven of this code
; and
(8)
Charitable raffle boards and games as set out under the
provisions of
article twenty-three, chapter forty-seven of this
code
.
§29-29-2. Definitions.
As used in this article, the following words and terms have
the following meanings, unless the context clearly indicates
otherwise:
(a) "Director" or "gaming director" means the person who
administers the division of gaming.
(b) "Division" means the division of gaming which regulates
all the legal gaming activities in West Virginia.
(c) "Dog racing" means any type of dog racing, including
greyhound racing, as defined in section three, article twenty-
three, chapter nineteen of this code
.
(d) "Horse racing" means any type of horse racing, including
thoroughbred racing and harness racing, as defined in section
three, article twenty-three, chapter nineteen of this code.
(e) "Legal gaming" means the following activities regulated by
the division of gaming:
(1) Horse and dog racing activities as set out under the
provisions of article twenty-three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of
article twenty-two-a of this chapter;
(4)
Limited video lottery as set out under the provisions of
article twenty-two-b of this chapter;
(5)
Gaming facilities as set out under the provisions of
article twenty-five of this chapter;
(6)
Charitable bingo as set out under the provisions of
article twenty, chapter forty-seven of this code
;
(7)
Charitable raffles as set out under the provisions of
article twenty-one, chapter forty-seven of this code
; and
(8)
Charitable raffle boards and games as set out under the
provisions of
article twenty-three, chapter forty-seven of this
code
.
(f) "Lottery" means the public gaming systems or games
established and operated by the division of gaming.
(g) "Lottery commission" means the seven member commission,
whose establishment, powers and duties
are
set out under the
provisions of article twenty-two of this chapter. The lottery
commission's powers and duties include the regulation of the
following activities
:
(1) Pari-mutuel wagering as set out under the provisions of
article twenty-three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of
article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of
article twenty-two-a of this chapter;
(4)
Limited video lottery as set out under the provisions of
article twenty-two-b of this chapter;
(5)
Gaming facilities as set out under the provisions of
article twenty-five of this chapter;
(6)
Charitable bingo as set out under the provisions of
article twenty, chapter forty-seven of this code
;
(7)
Charitable raffles as set out under the provisions of
article twenty-one, chapter forty-seven of this code
; and
(8)
Charitable raffle boards and games as set out under the
provisions of
article twenty-three, chapter forty-seven of this
code
.
(h) "Lottery tickets" or "tickets" means tickets or other
tangible evidence of participation used in lottery games or gaming
systems.
(i) "Pari-mutuel wagering" means a form of wagering on the
outcome of an event in which all wagers are pooled and held by an
association for distribution of the total amount, less the
deductions authorized by law, to holders of tickets on the winning
horses or dogs.
(j) "Racing commission" means the three member commission,
whose establishment, powers and duties,
except the
power to
regulate
pari-mutuel wagering,
are set out under the provisions of
article twenty-three, chapter nineteen of this code
.
§29-29-3. Racing commission.
On and after the first day of July, two thousand three,
the racing commission, established pursuant to the provisions of
article twenty-three, chapter nineteen of this code,
is hereby
transferred and continued as a commission in the division of
gaming. The racing commission will have the same membership,
powers and duties, except the power to regulate
pari-mutuel
wagering,
as set out in
article twenty-three, chapter nineteen of
this code.
§29-29-4. Lottery commission.
On and after the first day of July, two thousand three,
the
lottery commission, established pursuant to the provisions of
article twenty-two of this chapter
,
is hereby transferred and
continued as a commission in the division of gaming. The lottery
commission will have the same membership, powers and duties as set
out in
article twenty-two of this chapter
and will
also regulate
the following activities
:
(1) Pari-mutuel wagering as set out under the provisions of
article twenty-three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of
article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of
article twenty-two-a of this chapter;
(4)
Limited video lottery as set out under the provisions of
article twenty-two-b of this chapter;
(5)
Gaming facilities as set out under the provisions of
article twenty-five of this chapter;
(6)
Charitable bingo as set out under the provisions of
article twenty, chapter forty-seven of this code
;
(7)
Charitable raffles as set out under the provisions of
article twenty-one, chapter forty-seven of this code
; and
(8)
Charitable raffle boards and games as set out under the
provisions of
article twenty-three, chapter forty-seven of this
code
.
§29-29-5. Division of gaming; powers and duties.
(a) Effective the first day of July, two thousand three, there
is hereby created a division of gaming under the department of tax
and revenue. The state lottery office, created pursuant to article
twenty-two of this chapter, is hereby abolished.
(b) The division has the following powers and duties:
(1) To oversee all the legal gaming activities in West
Virginia;
(2) Rulemaking authority;
(3) All the powers and duties formerly held by the state
lottery office pursuant to the provisions of article twenty-two of
this chapter; and
(4) Perform such other duties as are needed to oversee legal
gaming activities.
(c)
All records, responsibilities, obligations, assets and
property, of whatever kind and character, of the state lottery
office, the racing commission and the lottery commission are hereby
transferred to the division of gaming.
(d) The balances of all funds of the state lottery office, the
racing commission and the lottery commission are transferred to the division of gaming.
(e) The division of gaming is hereby authorized to receive
federal funds.
(f) The department of tax and revenue, the division of gaming,
the state lottery office, the racing commission and the lottery
commission are authorized to undertake such actions as are
reasonably required for an orderly transfer of legal gaming
functions.
(g) Any commission or office transferred to the division
pursuant to this article will not have their appellate or
independent decision-making status affected by the enactment of
this article.
§29-29-6. Transition provisions.
(a) All orders, determinations, rules, permits, grants,
contracts, certificates, licenses, waivers, bonds, authorizations
and privileges which have been issued, made, granted, or allowed to
become effective by the governor, any state department or agency or
official thereof, or by a court of competent jurisdiction, in the
performance of functions which have been transferred to the
director or to the division, and were in effect on the date such
transfer occurred continue in effect, for the benefit of the
division, according to their terms until modified, terminated,
superseded, set aside, or revoked in accordance with the law by the
governor, the secretary, the director, or other authorized
official, a court of competent jurisdiction, or by operation of
law.
(b) Any proceedings, including notices of proposed rule
making, or any application for any license, permit, certificate, or
financial assistance pending before any commission or office,
functions of which were transferred to the division of gaming are
not affected by the transfer. Orders issued in any such
proceedings shall continue in effect until modified, terminated,
superseded, or revoked by the governor, the secretary, by a court
of competent jurisdiction, or by operation of law. Nothing in this
subsection prohibits the discontinuance or modification of any such
proceeding under the same terms and conditions and to the same
extent that such proceeding could have been discontinued or
modified if the division had not been created or if functions or
offices had not been transferred to the division. The creation of
the division of gaming and the subsequent transfer of functions do
not affect suits commenced prior to the effective date of the
creation, by or against any commission, office or officer, and in
all such suits, proceedings shall be had, appeals taken, and
judgments rendered in the same manner and with like effect as if
the creation or transfer had not occurred, except that the director
of the division of gaming or other officer may, in an appropriate
case, be substituted or added as a party.
§29-29-7. Director.
(a) There is hereby created the position of director of the
division of gaming, whose duties include the management and
administration of the division of gaming. The director shall be
qualified by training and experience to direct the operations of the division. No person shall be appointed director who has been
convicted of a felony or crime involving moral turpitude.
(b) The director shall be appointed by the governor, by and
with the advice and consent of the Senate, and shall serve at the
will and pleasure of the governor. By the first day of July, two
thousand three, the governor shall appoint a director. The
lottery director, in office on the thirtieth day of June, two
thousand three, is eligible for appointment as the director of
gaming.
(c) The director serves on a full-time basis and cannot
engage in any other profession or occupation.
(d) 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 political office, 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 racing commission and the lottery commission; 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.
(e) 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.
§29-29-8. Powers and duties of the director.
(a) The director shall have the following powers and duties:
(1) The responsibilities established in article twenty-two of
this chapter;
(2)
Establish,
with the approval of the racing commission and
the lottery commission,
offices or sections to oversee the legal
gaming activities;
(3) Appoint, with the approval of the racing commission and
the lottery commission, a deputy director for each of the offices
or sections established pursuant to this article. The deputy
directors appointed shall serve at the will and pleasure of the
director at an annual salary established by the racing commission
and the lottery commission. Deputy directors shall not be eligible
for civil service coverage as provided in section four, article
six, chapter twenty-nine of this code;
(4) Hire, pursuant to the approval of the racing commission
and the lottery commission, such professional, clerical, technical
and administrative personnel as may be necessary to carry out the provisions of this article. No person shall be employed by the
division who has been convicted of a felony or other crime
involving moral turpitude. Each person employed by the division
shall execute an authorization to allow an investigation of that
person's background; and
(5) Do such other activities as needed to regulate legal
gaming in West Virginia.
(b)
Upon the transfer of all the legal gaming functions to
the division of gaming, the gaming director is empowered to
authorize the transfer of funds associated with the transfer and
facilitate an orderly transfer of functions. The authority to make
transfers pursuant to this article expires on the thirtieth day of
June, two thousand four.
(c) All employees of the division, except as otherwise
provided herein and which exception includes those employees of the
racing commission set out in subparagraph (b), 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.
(d) The director shall, pursuant to the advise and approval of
the racing commission and the lottery commission:
(1) Prepare and submit, by the first day of January,
an annual
report on all the legal gaming activities in West Virginia to the
joint committee on government and finance, the department of tax
and revenue, and the governor; and
(2) Prepare and submit
the annual proposed appropriations for the division to the governor.
§29-29-9. Continuation.
The division of gaming shall continue to exist, pursuant to
the provisions of article ten, chapter four of this code, until the
first day of July, two thousand five, unless sooner terminated,
continued or reestablished pursuant to the provisions of that
article.