Senate Bill No. 565

(By Senators Fanning and Caldwell)

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[Introduced February 19, 2004; referred to the Committee on the Judiciary; and then to the Committee on Finance.]

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A BILL to amend and reenact §47-20-23 of the code of West Virginia, 1931, as amended; and to amend and reenact §47-21-21 of said code, all relating to charitable bingo and charitable raffles; and allowing game proceeds to be transferred, by check, between raffle and bingo accounts to offset losses.

Be it enacted by the Legislature of West Virginia:
That §47-20-23
of the code of West Virginia, 1931, as amended, be amended and reenacted; and that §47-21-21 of said code be amended and reenacted, all to read as follows:
ARTICLE 20. CHARITABLE BINGO.

§47-20-23. Administration; rules.

(a) The tax commissioner shall administer the provisions of this article in accordance with the provisions of chapter twenty-nine-a of this code.
(b) The commissioner shall deny an application for a license if he or she finds that the issuance thereof would be in violation of the provisions of this article.
(c) The commissioner may revoke, suspend or refuse to renew a license if the licensee or any member of a licensee organization has been convicted pursuant to section eighteen or nineteen of this article and the commissioner finds that it would be in the public interest to do so; or if the licensee has violated any of the provisions of this article: Provided, That before revoking or suspending a license issued under the authority of this article, the commissioner shall give at least ten days', or three days for a limited occasion or state fair license, notice to the licensee. Notice shall must be in writing, shall must state the reason for revocation or suspension and shall must designate a time and place when the licensee may show cause why the license should not be revoked or suspended. Notice shall must be sent by certified mail to the address of the licensee or served by certified mail or by personal or substituted service on the person who applied for the license on behalf of the licensee. The licensee may, at the time designated for the hearing, produce evidence in its behalf and be represented by counsel. A decision of the commissioner revoking or suspending a license is subject to judicial review upon the appeal of a licensee.
(d) The commissioner may suspend, revoke or refuse to renew any license issued hereunder for a material failure to maintain the records or file the reports required by this article if the commissioner finds that said failure will substantially impair the commissioner's ability to administer the provisions of this article with regard to said the licensee.
(e) The commissioner shall promulgate reasonable rules and regulations necessary to the administration of this article: Provided, That nothing herein shall restrict a licensee organization from transferring game proceeds, by sequentially numbered checks from the same account, between licensee's bingo and raffle funds, not to exceed the amount of actual loss of the game receiving the transfer.
(f) The provisions of article five, chapter twenty-nine-a of this code apply to the denial, revocation, suspension of or refusal to renew a license hereunder.
(g) The burden of proof in any administrative or court proceeding is on the applicant to show cause why a bingo license should be issued or renewed and on the licensee to show cause why its license should not be revoked or suspended.
(h) Notwithstanding any other provision of this article, the commissioner may issue an emergency order suspending a bingo license in the following manner:
(1) An emergency order may be issued only when the commissioner believes that:
(A) There has been a criminal violation of this article;
(B) Such The action is necessary to prevent a criminal violation of this article; or
(C) Such The action is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare.
(2) The emergency order shall must set forth the grounds upon which it is issued, including a statement of facts constituting the alleged emergency necessitating such the action. This order shall must be served by personal or substituted service on the licensee or the person who applied for the license on behalf of the licensee.
(3) The emergency order is effective immediately upon issuance and service upon the licensee.
(4) Within five days after issuance of an emergency order, the commissioner shall set a time and place for a hearing wherein the licensee may appear and show cause why its license should not be revoked.
ARTICLE 21. CHARITABLE RAFFLES.

§47-21-21. Administration; rules.

(a) The commissioner shall promulgate rules and regulations to administer the provisions of this article in accordance with the provisions of chapter twenty-nine-a of this code.
(b) The commissioner shall deny an application for a license or modification thereof if he or she finds that the issuance thereof would be in violation of the provisions of this article.
(c) The commissioner may revoke, suspend or refuse to renew a license if the licensee or any member of a licensee organization has been convicted pursuant to section eighteen or nineteen of this article and the commissioner finds that it would be in the public interest to do so; or if the licensee has violated any of the provisions of this article: Provided, That before revoking or suspending a license issued under the authority of this article, the commissioner shall give at least ten days, or three days for a limited occasion license, notice to the licensee. Notice shall be in writing, state the reason for revocation or suspension and designate a time and place when the licensee may show cause why the license should not be revoked or suspended. The notice required by this section shall be by personal or substituted service, in accordance with the West Virginia rules of civil procedure for trial courts of record, on the person who applied for the license on behalf of the licensee. The licensee may, at the time designated for the hearing, present evidence in its behalf and be represented by counsel. A decision of the commissioner revoking or suspending a license is subject to judicial review upon the appeal of a licensee. Such decision shall be subject to judicial review in the same manner as other decisions of the commissioner.
(d) The commissioner may suspend, revoke or refuse to renew any license issued hereunder for a material failure to maintain the records or file the reports required by this article if the commissioner finds that such failure will substantially impair the commissioner's ability to administer the provisions of this article with regard to such licensee.
(e) The commissioner shall promulgate reasonable rules and regulations necessary to the administration of this article: Provided, That nothing herein shall restrict a licensee from transferring game proceeds, by sequentially numbered checks from the same account, between licensee's bingo and raffle funds, not to exceed the amount of actual loss of the game receiving the transfer.
(f) The provisions of article five, chapter twenty-nine-a of this code apply to the denial, revocation, suspension of or refusal to renew a license hereunder.
(g) The burden of proof in any administrative or court proceeding is on the applicant to show cause why a raffle license should be issued or renewed and on the licensee to show cause why its license should not be revoked or suspended.
(h) Notwithstanding any other provision of this article, the commissioner may issue an emergency order suspending a raffle license under the following circumstances and in the following manner:
(1) An emergency order may be issued only when the commissioner believes that:
(i) There has been a criminal violation of this article;
(ii) Such The action is necessary to prevent a criminal violation of this article; or
(iii) Such The action is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare.
(2) The emergency order shall must set forth the grounds upon which it is issued, including a statement of facts constituting the alleged emergency necessitating such action. This order shall must be served by personal or substituted service on the licensee or the person who applied for the license on behalf of the licensee.
(3) The emergency order is effective immediately upon issuance and service upon the licensee.
(4) Within five days after issuance of an emergency order, the commissioner shall set a time and place for a hearing wherein the licensee may appear and show cause why its license should not be revoked.



NOTE: The purpose of this bill is to ease constraints on charitable bingo games and charitable raffles by allowing across-state-line members of the licensed operations to assist in the conduct of the games. The bill permits licensees to transfer game proceeds between their bingo and raffle operations.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.