ENGROSSED
COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 442
(By Senators McKenzie, Kessler, Edgell, Facemyer and Lanham)
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[Originating in the Committee on Finance;
reported March 24, 2005.]
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A BILL to amend and reenact §29-22-18 of the Code of West Virginia,
1931, as amended; and to amend said code by adding thereto a
new article, designated §29-22C-1, §29-22C-2, §29-22C-3,
§29-22C-4, §29-22C-5, §29-22C-6, §29-22C-7, §29-22C-8,
§29-22C-9, §29-22C-10, §29-22C-11, §29-22C-12, §29-22C-13,
§29-22C-14, §29-22C-15, §29-22C-16, §29-22C-17, §29-22C-18,
§29-22C-19, §29-22C-20, §29-22C-21, §29-22C-22, §29-22C-23,
§29-22C-24, §29-22C-25, §29-22C-26, §29-22C-27, §29-22C-28,
§29-22C-29, §29-22C-30, §29-22C-31, §29-22C-32, §29-22C-33 and
§29-22C-34, all relating generally to authorizing table games
at licensed horse and dog racetracks; setting initial
percentage for operation and administration expenses; short title; providing for legislative findings and intent;
requiring local option elections to approve licensure of
authorized table games at racetrack facilities; defining
certain terms; providing for duties and powers and
administrative expenses of the State Lottery Commission;
appointment of Lottery Commission staff; adoption and proposal
of rules; providing for licenses to engage in activities
related to operation of authorized table games at racetrack
facilities; providing for local option elections;
qualifications for applicant for license to operate authorized
table games at a racetrack facility; floor plan requirements;
management service contracts; coordination of licensed
activities; license application requirements; racetrack table
games licensee qualifications; license fees; requirement for
surety bond; issuance of licenses and prohibiting transfer,
assignment, sale or pledge as collateral; audits and reports
of licensee; duties of racetrack table games licensees;
requirements for supplier licensees; requirements for license
for employees of operator of racetrack with authorized table
games; requirements for management services provider license;
prohibition of false statements on application for license;
grounds for denial, revocation or suspension of license;
hearing procedures; expiration and renewal of licenses;
renewal fees; information included on license; display and availability of license; notice of change of address;
promulgation of legislative and emergency rules; commission
approval of table games rules of play; determination of
betting limits, operations and services by racetrack licensee;
posting of betting limits; standards for offering
complimentary goods and services; contract agreements and cost
for law-enforcement services; warrantless searches of person
and property; imposing privilege tax on adjusted gross
receipts of racetrack with authorized table games; payment by
racetrack licensee and Lottery Commission into the Compulsive
Gambling Treatment Fund and to the regional multicounty
economic development authorities; providing for filing and
payment of taxes; creating State Racetrack Table Games Fund;
distribution of amounts in Fund; prohibited wagers and other
activities; prohibiting wagers by certain persons;
establishing criminal offenses and penalties; forfeiture of
certain property; providing civil penalties; preemption of
certain local laws and rules; and exemption from certain
federal laws relating to shipment of gambling devices.
Be it enacted by the Legislature of West Virginia:
That §29-22-18 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that said code be amended by adding
thereto a new article, designated §29-22C-1, §29-22C-2, §29-22C-3,
§29-22C-4, §29-22C-5, §29-22C-6, §29-22C-7, §29-22C-8, §29-22C-9, §29-22C-10, §29-22C-11, §29-22C-12, §29-22C-13, §29-22C-14,
§29-22C-15, §29-22C-16, §29-22C-17, §29-22C-18, §29-22C-19,
§29-22C-20, §29-22C-21, §29-22C-22, §29-22C-23, §29-22C-24,
§29-22C-25, §29-22C-26, §29-22C-27, §29-22C-28, §29-22C-29,
§29-22C-30, §29-22C-31, §29-22C-32, §29-22C-33 and §29-22C-34, all
to read as follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18. State Lottery Fund; appropriations and deposits; not
part of general revenue; no transfer of state funds
after initial appropriation; use and repayment of
initial appropriation; allocation of Fund for
prizes, net profit and expenses; surplus; State
Lottery Education Fund; State Lottery Senior
Citizens Fund; allocation and appropriation of net
profits.
(a) There is hereby continued a special revenue fund in the
State Treasury which shall be designated and known as the State
Lottery Fund. The Fund consists of all appropriations to the Fund
and all interest earned from investment of the Fund and any gifts,
grants or contributions received by the Fund. All revenues
received from the sale of lottery tickets, materials and games
shall be deposited with the State Treasurer and placed into the
State Lottery Fund. The revenue shall be disbursed in the manner
provided in this section for the purposes stated in this section and shall not be treated by the Auditor and Treasurer as part of
the general revenue of the state.
(b) No appropriation, loan or other transfer of state funds
may be made to the Commission or Lottery Fund after the initial
appropriation.
(c) A minimum annual average of forty-five percent of the
gross amount received from each lottery shall be allocated and
disbursed as prizes.
(d) Not more than fifteen percent of the gross amount received
from each lottery may be allocated to and may be disbursed as
necessary for fund operation and administration expenses:
Provided, That for the period beginning the first day of January,
two thousand two through the thirtieth day of June, two thousand
three the month following the first passage of a referendum
election held pursuant to section seven, article twenty-two-c of
this chapter and for eighteen months thereafter, not more than
seventeen percent of the gross amount received from each lottery
shall be allocated to and may be disbursed as necessary for fund
operation and administration expenses.
(e) The excess of the aggregate of the gross amount received
from all lotteries over the sum of the amounts allocated by
subsections (c) and (d) of this section shall be allocated as net
profit. In the event that the percentage allotted for operations
and administration generates a surplus, the surplus shall be allowed to accumulate to an amount not to exceed two hundred fifty
thousand dollars. On a monthly basis, the Director shall report to
the Joint Committee on Government and Finance of the Legislature
any surplus in excess of two hundred fifty thousand dollars and
remit to the State Treasurer the entire amount of those surplus
funds in excess of two hundred fifty thousand dollars which shall
be allocated as net profit.
(f) After first satisfying the requirements for funds
dedicated to the School Building Debt Service Fund in subsection
(h) of this section to retire the bonds authorized to be issued
pursuant to section eight, article nine-d, chapter eighteen of this
code, and then satisfying the requirements for funds dedicated to
the Education, Arts, Sciences and Tourism Debt Service Fund in
subsection (i) of this section to retire the bonds authorized to be
issued pursuant to section eleven-a, article six, chapter five of
this code, any and all remaining funds in the State Lottery Fund
shall be made available to pay debt service in connection with any
revenue bonds issued pursuant to section eighteen-a of this
article, if and to the extent needed for such purpose from time to
time. The Legislature shall annually appropriate all of the
remaining amounts allocated as net profits in subsection (e) of
this section, in such proportions as it considers beneficial to the
citizens of this state, to: (1) The Lottery Education Fund created
in subsection (g) of this section; (2) the School Construction Fund created in section six, article nine-d, chapter eighteen of this
code; (3) the Lottery Senior Citizens Fund created in subsection
(j) of this section; and (4) the Division of Natural Resources
created in section three, article one, chapter twenty of this code
and the West Virginia Development Office as created in section one,
article two, chapter five-b of this code, in accordance with
subsection (k) of this section. No transfer to any account other
than the school building debt service account, the Education, Arts,
Sciences and Tourism Debt Service Fund, the economic development
project fund created under section eighteen-a, article twenty-two,
chapter twenty-nine of this code, or any fund from which debt
service is paid under subsection (c), section eighteen-a of this
article, may be made in any period of time in which a default
exists in respect to debt service on bonds issued by the School
Building Authority, the State Building Commission, the Economic
Development Authority or which are otherwise secured by lottery
proceeds. No additional transfer may be made to any account other
than the school building debt service account and the Education,
Arts, Sciences and Tourism Debt Service Fund when net profits for
the preceding twelve months are not at least equal to one hundred
fifty percent of debt service on bonds issued by the School
Building Authority and the State Building Commission which are
secured by net profits.
(g) There is hereby continued a special revenue fund in the State Treasury which shall be designated and known as the Lottery
Education Fund. The Fund shall consist of the amounts allocated
pursuant to subsection (f) of this section, which shall be
deposited into the Lottery Education Fund by the State Treasurer.
The Lottery Education Fund shall also consist of all interest
earned from investment of the Lottery Education Fund and any other
appropriations, gifts, grants, contributions or moneys received by
the Lottery Education Fund from any source. The revenues received
or earned by the Lottery Education Fund shall be disbursed in the
manner provided below in this section and may not be treated by the
Auditor and Treasurer as part of the general revenue of the state.
Annually, the Legislature shall appropriate the revenues received
or earned by the Lottery Education Fund to the state system of
public and higher education for these educational programs it
considers beneficial to the citizens of this state.
(h) On or before the twenty-eighth day of each month, as long
as revenue bonds or refunding bonds are outstanding, the Lottery
Director shall allocate to the school building debt service fund
created pursuant to the provisions of section six, article nine-d,
chapter eighteen of this code, as a first priority from the net
profits of the lottery for the preceding month, an amount equal to
one tenth of the projected annual principal, interest and coverage
ratio requirements on any and all revenue bonds and refunding bonds
issued, or to be issued, on or after the first day of April, one thousand nine hundred ninety-four, as certified to the Lottery
Director in accordance with the provisions of section six, article
nine-d, chapter eighteen of this code. In no event shall the
monthly amount allocated exceed one million eight hundred thousand
dollars, nor may the total allocation of the net profits to be paid
into the school building debt service fund, as provided in this
section, in any fiscal year exceed the lesser of the principal and
interest requirements certified to the Lottery Director or eighteen
million dollars. In the event there are insufficient funds
available in any month to transfer the amount required to be
transferred pursuant to this subsection to the school debt service
fund, the deficiency shall be added to the amount transferred in
the next succeeding month in which revenues are available to
transfer the deficiency. A lien on the proceeds of the State
Lottery Fund up to a maximum amount equal to the projected annual
principal, interest and coverage ratio requirements, not to exceed
twenty-seven million dollars annually, may be granted by the School
Building Authority in favor of the bonds it issues which are
secured by the net lottery profits.
When the school improvement bonds, secured by profits from the
lottery and deposited in the school debt service fund mature, the
profits shall become available for debt service on additional
school improvement bonds as a first priority from the net profits
of the lottery or may at the discretion of the authority be placed into the School Construction Fund created pursuant to the
provisions of section six, article nine-d, chapter eighteen of this
code.
(i) Beginning on or before the twenty-eighth day of July, one
thousand nine hundred ninety-six, and continuing on or before the
twenty-eighth day of each succeeding month thereafter, as long as
revenue bonds or refunding bonds are outstanding, the Lottery
Director shall allocate to the Education, Arts, Sciences and
Tourism Debt Service Fund created pursuant to the provisions of
section eleven-a, article six, chapter five of this code, as a
second priority from the net profits of the lottery for the
preceding month, an amount equal to one tenth of the projected
annual principal, interest and coverage ratio requirements on any
and all revenue bonds and refunding bonds issued, or to be issued,
on or after the first day of April, one thousand nine hundred
ninety-six, as certified to the Lottery Director in accordance with
the provisions of that section. In no event may the monthly amount
allocated exceed one million dollars nor may the total allocation
paid into the Education, Arts, Sciences and Tourism Debt Service
Fund, as provided in this section, in any fiscal year exceed the
lesser of the principal and interest requirements certified to the
Lottery Director or ten million dollars. In the event there are
insufficient funds available in any month to transfer the amount
required pursuant to this subsection to the Education, Arts, Sciences and Tourism Debt Service Fund, the deficiency shall be
added to the amount transferred in the next succeeding month in
which revenues are available to transfer the deficiency. A
second-in-priority lien on the proceeds of the State Lottery Fund
up to a maximum amount equal to the projected annual principal,
interest and coverage ratio requirements, not to exceed fifteen
million dollars annually, may be granted by the State Building
Commission in favor of the bonds it issues which are secured by the
net lottery profits.
When the bonds, secured by profits from the lottery and
deposited in the Education, Arts, Sciences and Tourism Debt Service
Fund mature, the profits shall become available for debt service on
additional bonds as a second priority from the net profits of the
lottery.
(j) There is hereby continued a special revenue fund in the
State Treasury which shall be designated and known as the Lottery
Senior Citizens Fund. The fund shall consist of the amounts
allocated pursuant to subsection (f) of this section, which amounts
shall be deposited into the Lottery Senior Citizens Fund by the
State Treasurer. The Lottery Senior Citizens Fund shall also
consist of all interest earned from investment of the Lottery
Senior Citizens Fund and any other appropriations, gifts, grants,
contributions or moneys received by the Lottery Senior Citizens
Fund from any source. The revenues received or earned by the Lottery Senior Citizens Fund shall be distributed in the manner
provided below and may not be treated by the Auditor or Treasurer
as part of the general revenue of the state. Annually, the
Legislature shall appropriate the revenues received or earned by
the Lottery Senior Citizens Fund to such any senior citizens
medical care and other programs as it considers beneficial to the
citizens of this state.
(k) The Division of Natural Resources and the West Virginia
Development Office, as appropriated by the Legislature, may use the
amounts allocated to them pursuant to subsection (f) of this
section for one or more of the following purposes: (1) The payment
of any or all of the costs incurred in the development,
construction, reconstruction, maintenance or repair of any project
or recreational facility, as these terms are defined in section
four, article five, chapter twenty of this code, pursuant to the
authority granted to it under article five, chapter twenty of this
code; (2) the payment, funding or refunding of the principal of,
interest on or redemption premiums on any bonds, security interests
or notes issued by the parks and recreation section of the Division
of Natural Resources under article five, chapter twenty of this
code; or (3) the payment of any advertising and marketing expenses
for the promotion and development of tourism or any tourist
facility or attraction in this state.
ARTICLE 22C. RACETRACK LOTTERY TABLE GAMES ACT.
§29-22C-1. Short title.
This article shall be known and may be cited as the Racetrack
Lottery Table Games Act.
§29-22C-2. Authorization of table games at licensed racetrack
facilities; legislative findings and declarations.
(a) Operation of authorized table games. -- Notwithstanding
any provision of law to the contrary, the operation of authorized
table games and ancillary activities at a licensed racetrack and
the playing of those authorized table games at a licensed racetrack
is not unlawful when conducted in accordance with the provisions of
this article and rules of the Commission.
(b) Legislative findings and declarations. --
(1) The Legislature finds and declares that the tourism
industry plays a critical role in the economy of this state and
that a substantial state interest exists in protecting that
industry. It further finds and declares that the authorization of
the operation of table games, pursuant to this article, at the four
existing racetracks in this state that hold racetrack video lottery
licenses will protect and preserve existing lottery and video
lottery revenues of this state, will protect and enhance the
tourism industry in this state and will indirectly benefit other
segments of the economy of this state.
(2) The Legislature further finds and declares that the state
can control and regulate the operation of authorized table games under this article if the state limits the operation of authorized
table games to the four existing racetracks in this state that hold
racetrack video lottery licenses issued by the State Lottery
Commission pursuant to article twenty-two-a of this chapter.
(3) The Legislature further finds and declares that permitting
the operation of the authorized table games in accordance with the
provisions of this article at racetracks licensed under article
twenty-two-a of this chapter to operate video lottery terminals
constitutes the operation of lottery games owned, controlled,
operated and regulated by the State of West Virginia within the
purview of section thirty-six, article VI of the Constitution of
this state.
(c) Legislative intent. --
(1) The Legislature declares that permitting the operation of
authorized table games at licensed racetracks in accordance with
the provisions of this article is intended to enhance the tourism
market throughout the state, including, but not limited to,
year-round recreational and tourism locations in the state.
(2) The Legislature further declares that permitting the
operation of authorized table games at licensed racetracks in
accordance with the provisions of this article is intended to
preserve and protect existing racetrack video lottery revenues to
the state.
(3) The Legislature further declares that permitting the operation of authorized table games at licensed racetracks in
accordance with the provisions of this article is intended to
provide broad economic opportunities to the citizens of the state,
including the creation of a significant number of year-round
employment opportunities.
(4) The Legislature further declares that permitting the
operation of authorized table games at licensed racetracks in
accordance with the provisions of this article is intended to
positively assist the state's racing industry and support programs
intended to foster and promote horse and dog racing and breeding.
§29-22C-3. Definitions.
(a) Applicability of definitions. -- For the purposes of this
article, the words or terms defined in this section, and any
variation of those words or terms required by the context, have the
meanings ascribed to them in this section. These definitions are
applicable unless a different meaning clearly appears from the
context in which the word or term is used.
(b) Terms defined. --
(1) "Adjusted gross receipts" means gross receipts from
authorized table games less winnings paid to patrons wagering on
the racetrack's table games.
(2) "Applicant" means any person who on his or her own behalf,
or on behalf of another, has applied for permission to engage in
any act or activity that is regulated under the provision of this article for which a license is required by this article or rule of
the Commission.
(3) "Application" means any written request for permission to
engage in any act or activity that is regulated under the
provisions of this article submitted in the form prescribed by the
Commission.
(4) "Authorized table game" means any game played with cards,
dice or any mechanical, electromechanical or electronic device or
machine for money, credit or any representative of value,
including, but not limited to, baccarat, blackjack, poker, craps,
roulette, wheel of fortune, any variation of these games approved
by the Commission, and any other game expressly authorized by
interpretive rule of the Commission, including multiplayer
electronic table games, machines and devices, but excluding video
lottery, punchboards, faro, numbers tickets, push cards, jar
tickets, pull tabs or similar games.
(5) "Background investigation" means a security, criminal and
credit investigation of an applicant who has applied for the
issuance or renewal of a license pursuant to this article, or a
licensee who holds a current license.
(6) "Commission" or "State Lottery Commission" means the West
Virginia Lottery Commission created by article twenty-two of this
chapter.
(7) "Complimentary" means a service or item provided at no cost or at a reduced price.
(8) "Compensation" means any money, thing of value, or
financial benefit conferred or received by a person in return for
services rendered, or to be rendered, whether by that person or
another.
(9) "Contested case" means a proceeding before the Commission,
or a hearing examiner designated by the Commission to hear the
contested case, in which the legal rights, duties, interests or
privileges of specific persons are required by law or
constitutional right to be determined after a Commission hearing,
but does not include cases in which the Commission issues a
license, permit or certificate after an examination to test the
knowledge or ability of the applicant where the controversy
concerns whether the examination was fair or whether the applicant
passed the examination and does not include rulemaking.
(10) "Control" means the authority directly or indirectly to
direct the management and policies of an applicant for a license
issued under this article or the holder of a license issued under
this article.
(11) "Designated gaming area" means one or more specific floor
areas of a licensed racetrack within which the Commission has
authorized operation of racetrack video lottery terminals or table
games, or the operation of both racetrack video lottery terminals
and table games.
(12) "Director" means the Director of the West Virginia State
Lottery Commission appointed pursuant to section six, article
twenty-two of this chapter.
(13) "Disciplinary action" is an action by the Commission
suspending or revoking a license, fining, excluding, reprimanding,
or otherwise penalizing a person for violating this article or
rules promulgated by the Commission.
(14) "Financial interest" or "financially interested" means
any interest in investments, awarding of contracts, grants, loans,
purchases, leases, sales, or similar matters under consideration
for consummation by the Commission. A member, employee, or agent
of the Commission will be considered to have a financial interest
in a matter under consideration if any of the following
circumstances exist:
(A) He or she owns one percent or more of any class of
outstanding securities that are issued by a party to the matter
under consideration by the Commission; or
(B) He or she is employed by an independent contractor for a
party to the matter under consideration or consummated by the
Commission.
(15) "Gaming equipment" means gaming tables, cards, dice,
chips, shufflers, drop boxes or any other mechanical, electronic or
other device, mechanism or equipment or related supplies used or
consumed in the operation of any authorized table game at a licensed racetrack.
(16) "Gross receipts" means the total of all sums including
valid or invalid checks, currency, tokens, coupons, vouchers, or
instruments of monetary value whether collected or uncollected,
received by a racetrack with table games from table gaming,
including all entry fees assessed for tournaments or other
contests.
(17) "Indirect ownership" means an interest a person owns in
an entity or in property solely as a result of application of
constructive ownership rules without regard to any direct ownership
interest (or other beneficial interest) in the entity or property.
"Indirect ownership" shall be determined under the same rules
applicable to determining whether a gain or loss between related
parties is recognized for federal income tax purposes.
(18) "Licensed racetrack" means a thoroughbred horse or
greyhound dog racing facility licensed under both article twenty-
two-a of this chapter and article twenty-three, chapter nineteen of
this code.
(19) "License" means any license applied for or issued by the
Commission under this article, including, but not limited to:
(A) A license to operate authorized table games at a licensed
racetrack;
(B) A license to supply a racetrack licensed under this
article to operate table games with table gaming equipment or services necessary for the operation of table games;
(C) A license to be employed at a racetrack licensed under
this article to operate authorized table games when the employee
works in a designated gaming area that has table games or performs
duties in furtherance of or associated with the operation of table
games at the licensed racetrack; and
(D) A license to provide management services under a contract
to a racetrack licensed under this article to operate table games.
(20) "Licensee" means any person who is licensed under any
provision of this article.
(21) "Lottery" means the public gaming systems or games
regulated, controlled, owned and operated by the State Lottery
Commission as provided in this article and in articles twenty-two,
twenty-two-a, twenty-two-b and twenty-five of this chapter.
(22) "Member" means a Commission member appointed to the West
Virginia Lottery Commission under article twenty-two of this
chapter.
(23) "National criminal history background check system" means
the criminal history record system maintained by the Federal Bureau
of Investigation based on fingerprint identification or any other
method of positive identification.
(24) "Own" means any beneficial or proprietary interest in any
property and includes, but is not limited to, any direct or
indirect beneficial or proprietary interest in any business of an applicant or licensee.
(25) "Person" means any natural person, and any corporation,
association, partnership, limited liability company, limited
liability partnership, trust or other entity, regardless of its
form, structure or nature other than a government agency or
instrumentality.
(26) "Player", "Patron" or "Wagerer" means a person who plays
an authorized game at a racetrack licensed under this article to
have table games.
(27) "Player's account" means a financial record established
by a licensed racetrack for an individual racetrack patron to which
the racetrack may credit winnings and other amounts due to the
racetrack patron and from which the patron may withdraw moneys due
to the patron for purchase of tokens, chips or electronic media or
other purposes.
(28) "Racetrack table games license" means authorization
granted under this article by the Commission to a racetrack that is
already licensed under article twenty-two-a of this chapter to
operate racetrack video lottery terminals, which permits the
racetrack to operate authorized table games in one or more
designated gaming areas in one or more buildings owned by the
licensed racetrack on the grounds where live pari-mutuel racing is
conducted by the licensee.
(29) "Racetrack Table Games Fund" means the special fund in the State Treasury created in section twenty-seven of this article.
(30) "Significant influence" means the capacity of a person to
affect substantially (but not control) either, or both, of the
financial and operating policies of another person.
(31) "Supplier" means a person who the Commission has
identified under rules promulgated by the Commission as requiring
a license to provide a racetrack table games licensee with goods or
services to be used in connection with operation of table games.
(32) "Wager" means a sum of money or thing of value risked on
an uncertain occurrence.
(33) "Winnings" means the total cash value of all property or
sums including currency, tokens, or instruments of monetary value
paid to players as a direct result of wagers placed at or through
authorized table games.
§29-22C-4. Commission duties and powers.
(a) Duties. -- In addition to the duties set forth elsewhere
in this article or in articles twenty-two, twenty-two-a,
twenty-two-b and twenty-five of this chapter, the Commission shall:
(1) Establish minimum standards for gaming equipment,
including, but not limited to, electronic and mechanical gaming
equipment;
(2) Approve, modify or reject rules proposed by the licensee
for all authorized table games proposed to be operated by a
racetrack table games licensee;
(3) Approve, modify or reject minimum internal control
standards proposed by the licensee governing racetrack table game
operations, including the maintenance of financial records;
(4) Approve staff considered necessary by the Director to
oversee, inspect and monitor the operation of table games at any
racetrack licensed under this article and article twenty-two-a of
this chapter, including, but not limited to, inspection of
designated gaming areas, gaming equipment and security equipment
used in the operation of table games to assure continuous
compliance with the provisions of this article and applicable rules
of the Commission;
(5) Determine eligibility of a person to hold or continue to
hold a license issued under this article;
(6) Issue all licenses;
(7) Maintain a record of all licenses issued;
(8) Levy and collect the taxes imposed by this article and the
fees authorized, required or specified in this article or the
legislative rules of the Commission, and receive, accept and pay
all taxes and fees collected under this article into the Racetrack
Table Games Fund; and
(9) Keep a public record of all Commission actions and
proceedings with respect to racetrack table games.
(b) Powers. -- In addition to the powers set forth elsewhere
in this article or in articles twenty-two, twenty-two-a, twenty-two-b and twenty-five of this chapter, the Commission may:
(1) Sue to enforce any provision of this article or any rule
of the Commission, whether by civil action or petition for
injunctive relief;
(2) Hold hearings, administer oaths and issue subpoenas for
attendance of witnesses to testify or subpoena duces tecums for the
production of documents or other evidence;
(3) Enter a licensed racetrack with authorized table games at
any time and without notice to ensure strict compliance with this
article and with the rules of the Commission;
(4) Bar, for cause, any person from:
(A) Entering a designated gaming area of a licensed racetrack
with table games, or the grounds of a racetrack licensed under this
article; or
(B) Participating in any capacity in the play of any table
game, or in the operation of table games;
(5) Promulgate, in accordance with the provision of article
three, chapter twenty-nine-a of this code, any legislative,
interpretive and procedural rules the Commission considers
necessary for the successful implementation, administration and
enforcement of this article, and to amend or revoke any promulgated
rule, in accordance with provisions of article three, chapter
twenty-nine-a of this code, at the discretion of the Commission;
and
(6) Exercise any other powers that may be necessary to
effectuate the provisions of this article and the rules of the
Commission.
§29-22C-5. Appointment of Commission staff; conditions of
employment.
(a) The Director, with the approval of the Commission, may
appoint any professional, clerical, technical and administrative
personnel, who shall be state employees hired in accordance with
article six, chapter twenty-nine of this code, which the Director
considers necessary to carry out the provisions of this article.
Prior to his or her appointment, each applicant for a position
shall provide his or her fingerprints and shall undergo a thorough
background investigation.
(b) No Commission employee may directly or indirectly hold an
ownership or a financial interest in any racetrack table game
licensee, or a supplier licensee, or in a holding company that owns
the licensee, or in a business related to the licensee for federal
income tax purposes, or in an applicant for either license.
(c) No Commission employee shall knowingly wager or be paid
any prize from any wager at any licensed racetrack with authorized
table games within this state or at any facility outside this state
or this country that is directly or indirectly owned or operated:
(1) By a racetrack table games licensee that is licensed
pursuant to this article, or
(2) By any person who directly or indirectly owns the
racetrack table games licensee.
§29-22C-6. Licenses required.
(a) No person may engage in any activity in connection with a
racetrack with authorized table games in this state for which a
license is required by this article or rules of the Commission
unless all necessary licenses have been obtained in accordance with
this article and rules of the Commission.
(b) Licenses are required for the following purposes:
(1) For any person owning or operating a racetrack authorized
table game in the state;
(2) For any person supplying a racetrack table games licensee
with gaming equipment or gaming equipment services;
(3) For any individual employed by a racetrack table games
licensee in connection with the operation of authorized table games
in the state; and
(4) For any person providing management services under a
contract to a racetrack table games licensee.
(c) The Commission may not grant a license to an applicant
until the Commission determines that each person who has control of
the applicant also meets all of the qualifications the applicant
must meet to hold the license for which application is made. The
following persons are considered to have control of an applicant:
(1) Each person associated with a corporate applicant, including any corporate holding company, parent company or
subsidiary company of the applicant, but not including a bank or
other licensed lending institution which holds a mortgage or other
lien acquired in the ordinary course of business, who has the
ability to control the activities of the corporate applicant or
elect a majority of the board of Directors of that corporation;
(2) Each person associated with a noncorporate applicant who
directly or indirectly holds any beneficial or proprietary interest
in the applicant or who the Commission determines to have the
ability to control the applicant; and
(3) Key personnel of an applicant, including any executive,
employee or agent, having the power to exercise significant
influence over decisions concerning any part of the applicant's
business operation.
(d) Any license required by this article or rules of the
Commission is in addition to all other licenses or permits required
by applicable federal, state or local law.
§29-22C-7. Local option election.
(a) No racetrack may be licensed under this article to operate
authorized table games until a local option election is held in the
county in which pari-mutuel wagers are received at a racetrack
licensed under article twenty-three, chapter nineteen of this code
and the voters of that county voting on the question approve having
authorized table games at the racetrack.
(b) The county commission shall place the question on the
ballot upon the receipt of a written notice from a licensed
racetrack located within that county requesting that the question
be placed on the ballot.
(c) The county commission of the county in which table games
would be located shall give notice to the public of the election by
publication of the notice as a Class II-0 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 election is to be held. The date of the
last publication of the notice shall fall on a date within the
period of the fourteen consecutive days next preceding the day of
the election.
(d) On the local option election ballot shall be printed the
following:
Shall West Virginia Lottery Commission authorized table games
be permitted at the [name of licensed racetrack]?
[ ] Yes [ ] No
(Place a cross mark in the square opposite your choice.)
(e) The local option election shall be held in conjunction
with the next primary or general election scheduled more than
ninety days following receipt by the county commission of the
notice required by this section, or at a special election:
Provided, That upon written request by the licensed racetrack that a special election be called, the county commission shall order a
special election to be held on the question within ninety days
after the receipt by the county commission of that request:
Provided, however, That the county commission may require the
licensed racetrack to pay the entire cost incurred by the county to
hold the special election. Approval shall be by a majority of the
voters casting votes at the election on the question of approval or
disapproval of authorized table games at a licensed racetrack.
(f) If the majority votes against allowing table games at a
licensed racetrack, no election on the issue shall be held for a
period of one hundred four weeks. A local option election may
thereafter be held in the manner provided in this section. The
process to hold another election on the question shall start anew,
as if no prior request for an election on the question had been
filed with county commission and as if there had been no prior
election on the question.
(g) If the majority votes for allowing authorized table games
at a licensed racetrack facility in a county, no further election
shall thereafter be held in that county on that issue or on the
issue of authorization of racetrack video lottery pursuant to
section eight, article twenty-two-a of this chapter.
§29-22C-8. License to operate a racetrack with authorized table
games.
(a) Racetrack table games licenses. -- The Commission may issue up to four racetrack table games licenses to operate
authorized table games in accordance with the provisions of this
article. The Legislature intends that no more than four licenses
to operate a racetrack with authorized table games in this state
shall be permitted in any event.
(b) Eligibility. -- A person may apply for a racetrack table
games license if that person holds a valid racetrack video lottery
license issued by the Commission pursuant to article twenty-two-a
of this chapter.
(c) Location. -- A racetrack table games license authorizes
the operation of authorized table games at the particular licensed
facility identified in the racetrack video lottery license issued
pursuant to article twenty-two-a of this chapter.
(d) Floor plan submission requirement. -- Prior to commencing
the operation of any table games in a designated gaming area, a
racetrack table games licensee shall submit to the Commission for
its approval a detailed floor plan depicting the location of the
designated gaming area in which table games will be located and its
proposed arrangement of the table games. Any floor plan submission
that satisfies the requirements of the rules promulgated by the
Commission shall be considered approved by the Commission unless
the racetrack table games licensee is notified in writing to the
contrary within one month of filing a detailed floor plan.
(e) Management service contracts. --
(1) Approval. -- A racetrack table games licensee may not
enter into any management service contract that would act to permit
any person other than the licensee to operate authorized table
games unless the management service contract is: (A) With a person
licensed under this article to provide management services; (B) is
in writing; and (C) the contract has been approved by the
Commission.
(2) Material change. -- The license racetrack table games
licensee shall submit any material change in a management service
contract previously approved by the Commission to the Commission
for its approval or rejection before the material change may take
effect.
(3) Prohibition on assignment or transfer. -- A management
services contract may not be assigned or transferred to a third
party.
(4) Other Commission approvals and licenses. -- The duties and
responsibilities of a management services provider under a
management services contract may not be assigned, delegated,
subcontracted or transferred to a third party to perform without
the prior approval of the Commission. Third parties must be
licensed under this article before providing service. The
Commission may by rule clarify application of this subdivision and
provide exceptions to its application.
(f) Coordination of licensed activities. -- In order to co-ordinate various licensed activities within racetrack
facilities, the following provisions apply to licensed racetrack
facilities:
(1) The provisions of this article and of article twenty-two-a
of this chapter shall be interpreted to allow table games and video
lottery operations under those articles to be harmoniously
conducted in the same designated gaming area.
(2) On the effective date of this article, the provisions of
section twenty-one of this article apply to all video lottery games
conducted within a racetrack facility, notwithstanding any
inconsistent provisions contained in article twenty-two-a of this
chapter.
(3) On and after the effective date of this article, beverages
regulated by the Alcohol Beverage Control Commissioner, pursuant to
chapter sixty and article sixteen, chapter eleven of this code, may
be sold throughout the hours of operation of a racetrack facility,
and vacation of the premises after service of beverages ceases is
not required, notwithstanding any inconsistent provisions of this
code or inconsistent rules promulgated by the Alcohol Beverage
Control Commissioner with respect to hours of sale of those
beverages, or required vacation of the premises.
(g) Fees, expiration date and renewal. --
(1) An initial racetrack table games license fee of
twenty-five thousand dollars shall be paid to the Commission at the time of issuance of the racetrack table games license, regardless
of the number of months remaining in the license year for which it
is issued. All licenses expire at the end of the day on the
thirtieth day of June each year.
(2) The Commission shall annually renew a racetrack table
games license as of the first day of July of each year provided the
licensee:
(A) Successfully renews its racetrack video lottery license
under article twenty-two-a of this chapter before the first day of
July;
(B) Pays to the Commission the annual license renewal fee of
twenty-five thousand dollars required by this section at the time
it files its application for renewal of its license under article
twenty-two-a of this chapter; and
(C) During the then current license year, the licensee
complied with all provisions of this article, all rules adopted by
the Commission and all final orders of the Commission applicable to
the licensee.
(3) If the licensee fails to apply to renew its license under
article twenty-two-a of this code until after the license expires,
the Commission shall renew its license under this article at the
time it renews its license under article twenty-two-a of this
chapter provided the licensee has paid the annual license fee
required by this section and during the preceding license year the licensee complied with all provisions of this article, all rules
adopted by the Commission and all final orders of the Commission
applicable to the licensee.
(h) Facility qualifications. -- A racetrack table games
licensee shall demonstrate that the racetrack with authorized table
games will: (1) Be accessible to disabled individuals in
accordance with applicable federal and state laws; (2) be licensed
in accordance with this article, and all other applicable federal,
state and local laws; and (3) meet any other qualifications
specified in rules adopted by the Commission.
(i) Surety bond. -- A racetrack table games licensee shall
execute a surety bond to be given to the state to guarantee the
licensee faithfully makes all payments in accordance with the
provisions of this article and rules promulgated by the Commission.
The surety bond shall be:
(1) In the amount determined by the Commission to be adequate
to protect the state against nonpayment by the licensee of amounts
due the state under this article;
(2) In a form approved by the Commission; and
(3) With a surety approved by the Commission who is licensed
to write surety insurance in this state.
The bond shall remain in effect during the term of the license
and may not be canceled by a surety on less than thirty days'
notice in writing to the Commission. The total and aggregate liability of the surety on the bond is limited to the amount
specified in the bond.
(j) Authorization. -- A racetrack table games license
authorizes the licensee to operate an unlimited amount of
authorized table games while the license is active, subject to
subsection (d) of this section. Licenses to operate authorized
table games and to operate video lottery games at a licensed
racetrack shall continue, notwithstanding a licensee's failure to
meet the requirements of subdivision six, subsection (a), section
seven, article twenty-two-a of this chapter. A racetrack table
games license is not transferable or assignable and cannot be sold
or pledged as collateral.
(k) Audits. -- When applying for a license and annually
thereafter prior to license renewal, a racetrack table games
licensee shall submit to the Commission an annual audit, by a
certified public accountant, of the financial transactions and
condition of the licensee's total operations. The audit shall be
made in accordance with generally accepted accounting principles
and applicable federal and state laws.
(l) Commission office space. -- A racetrack table games
licensee shall provide to the Commission, at no cost to the
Commission, suitable office space at the racetrack facility for the
Commission to perform the duties required of it by this article and
the rules of the Commission.
§29-22C-9. Duties of racetrack table games licensee.
(a) General. -- All racetrack table games licensees shall:
(1) Promptly report to the Commission any facts or
circumstances related to the operation of a racetrack with
authorized table games which constitute a violation of state or
federal law;
(2) Conduct all table games activities and functions in a
manner which does not pose a threat to the public health, safety or
welfare of the citizens of this state and which does not adversely
affect the security or integrity of the operation of authorized
table games;
(3) Hold the Commission and this state harmless from and
defend and pay for the defense of any and all claims which may be
asserted against a racetrack licensee, the Commission, the state or
employees thereof, arising from the licensee's participation in
table games authorized under this article;
(4) Assist the Commission in maximizing table games revenues;
(5) Maintain all records required by the Commission;
(6) Upon request by the Commission, provide the Commission
access to all records and the physical premises where the
licensee's table games activities and related activities occur, for
the purpose of monitoring or inspecting the licensee's activities
and the table games, gaming equipment and security equipment; and
(7) Keep current in all payments and obligations to the Commission.
(b) Specific. -- All racetrack table games licensees shall:
(1) Acquire table games and gaming equipment by purchase,
lease or other assignment and provide a secure location for the
placement, operation and play of the table games and gaming
equipment;
(2) Permit no person to tamper with or interfere with the
operation of any authorized table game;
(3) Ensure that authorized table games are within the sight
and control of designated employees of the licensed racetrack with
authorized table games and under continuous observation by security
equipment in conformity with specifications and requirements of the
Commission;
(4) Ensure that authorized table games are placed and remain
placed in the specific locations within designated gaming areas at
the licensed racetrack which have been approved by the Commission.
Authorized table games at a licensed racetrack shall only be
relocated in accordance with the rules of the Commission;
(5) Maintain at all times sufficient cash and gaming tokens,
chips and electronic cards or other electronic media;
(6) Install, post and display conspicuously at locations
within or about the licensed racetrack with authorized table games,
signs, redemption information and other promotional material as
required by the Commission; and
(7) Assume liability for lost or stolen money from any table
game.
§29-22C-10. Reports by a racetrack table games licensee.
A racetrack table games licensee shall maintain daily records
showing the gross receipts and adjusted gross receipts of the
racetrack from authorized table games and shall timely file with
the Commission any additional reports required by rule promulgated
by the Commission, or as may be required by other provisions of
this code.
§29-22C-11. License to supply a racetrack with gaming equipment
or services.
(a) License. -- The Commission may issue a license to a person
to supply a racetrack licensed under this article with gaming
equipment or services when the Commission determines that the
person meets the requirements of this section and any applicable
rules of the Commission.
(b) License qualifications. -- Each applicant who is an
individual and each individual who controls an applicant, as
defined in subsection (c) section six of this article, shall be of
good moral character, honesty and integrity and shall have the
necessary experience and financial ability to successfully carry
out the functions of an authorized table games supplier. The
Commission may adopt rules establishing additional requirements for
an authorized table games supplier. The Commission may accept licensing by another jurisdiction, specifically determined by the
Commission to have similar licensing requirements, as evidence the
applicant meets authorized table games supplier licensing
requirements.
(c) Supplier specifications. -- An applicant for a license to
supply gaming equipment or services to a racetrack table games
licensee shall demonstrate that the gaming equipment or services
that the applicant plans to offer to the racetrack table games
licensee conform or will conform to standards established by rules
of the Commission and applicable state law. The Commission may
accept gaming equipment or services approval by another
jurisdiction, specifically determined by the Commission to have
similar equipment standards, as evidence the applicant meets the
standards established by the Commission and applicable state law.
(d) License application requirements. -- An applicant for a
license to supply a racetrack table games licensee shall:
(1) Submit an application to the Commission in the form the
Commission requires including adequate information to serve as a
basis for a thorough background check;
(2) Submit fingerprints for a national criminal records check
by the Criminal Identification Bureau of the West Virginia State
Police and the Federal Bureau of Investigation. The fingerprints
shall be furnished by all persons required to be named in the
application and shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and
the Federal Bureau of Investigation. The Commission may require
any applicant seeking the renewal of a license or permit to furnish
fingerprints for a national criminal records check by the Criminal
Identification Bureau of the West Virginia State Police and the
Federal Bureau of Investigation; and
(3) Pay to the Commission a nonrefundable application and
license fee for deposit into the Racetrack Table Games Fund in the
amount of one hundred dollars, which shall be in lieu of the first
year's license fee provided in subsection (g) of this section.
(e) Authorization. -- A license to supply a racetrack table
games licensee authorizes the licensee to sell or lease gaming
equipment or offer services to a racetrack with authorized table
games while the license is active. The Commission may by rule
establish the conditions which constitute an emergency under which
the Commission may issue provisional licenses pending completion of
final action on an application.
(f) Inventory. -- A licensed table games supplier shall submit
to the Commission a list of all gaming equipment and services sold,
delivered to or offered to a racetrack with authorized table games
in this state when required by the Commission.
(g) Fees, expiration date and renewal. -- A licensed table
games supplier shall pay to the Commission an annual license fee of
one hundred dollars for an initial term beginning prior to the date of the supplier's first sale to a racetrack table games licensee
and continuing through the end of the twelfth month thereafter
whenever the licensee has paid the renewal fee and has continued to
comply with all applicable statutory and rule requirements. The
Commission shall renew a license to supply a racetrack with
authorized table games annually thereafter. A racetrack table
games licensee may continue to use supplies acquired from a
licensed table games supplier while that supplier was licensed,
notwithstanding the expiration of the supplier's license, unless
the Commission finds a defect in those gaming supplies.
§29-22C-12. License to be employed in a racetrack with authorized
table games.
(a) Licenses. -- The Commission shall issue a license to be
employed in the operation of racetrack table games to a person who
meets the requirements of this section.
(b) License qualifications. -- To qualify for a license to be
employed in the operation of racetrack table games, the applicant
shall be an individual of good moral character, honesty and
integrity, and have been offered employment by the racetrack table
games licensee contingent upon licensure pursuant to the provisions
of this section. The Commission by rule may establish different
specific requirements for each job classification that may be
created by the Commission to recognize the extent to which a
particular job classification has the ability to impact the proper operation of table games.
(c) License application requirements. -- An applicant for a
license to be employed by a racetrack with authorized table games
in a position or to perform duties for which a license is required
under this article or rules of the Commission shall:
(1) Submit an application to the Commission in the form
required by the Commission for each job classification including
adequate information to serve as a basis for a thorough background
check;
(2) Submit fingerprints for a national criminal records check
by the Criminal Identification Bureau of the West Virginia State
Police and the Federal Bureau of Investigation. The fingerprints
shall be furnished by all persons required to be named in the
application and shall be accompanied by a signed authorization for
the release of information by the Criminal Investigation Bureau and
the Federal Bureau of Investigation. The Commission may require
any applicant seeking the renewal of a license or permit to furnish
fingerprints for a national criminal records check by the Criminal
Identification Bureau of the West Virginia State Police and the
Federal Bureau of Investigation; and
(3) Pay to the Commission a nonrefundable application fee for
deposit into the Racetrack Table Games Fund in the amount of one
hundred dollars. The fee may be paid on behalf of applicant by the
employer.
(d) Authorization. -- A license to be employed by a racetrack
with authorized table games permits the licensee to be employed in
the capacity designated by the Commission with respect to the
license while the license is still active.
(e) Renewal fee and form. -- Each licensed employee shall pay
to the Commission an annual license fee set by the Commission by
rule by the thirtieth day of June of each year. The fee may vary
based on the job classification of the applicant, but in no event
shall it exceed one hundred dollars. The fee may be paid on behalf
of the licensed employee by the employer. In addition to a renewal
fee, each licensed employee shall submit a renewal application on
the form required by the Commission.
§29-22C-13. License to a provider of management services.
(a) License. -- The Commission may issue a license to a person
providing management services under a management services contract
to a racetrack table games licensee when the Commission determines
that the person meets the requirements of this section and any
applicable rules of the Commission.
(b) License qualifications. -- Each applicant who is an
individual and each individual who controls an applicant, as
defined in subsection (c) section six of this article, shall be of
good moral character, honesty and integrity and shall have the
necessary experience and financial ability to successfully carry
out the functions of a management services provider. The Commission may adopt rules establishing additional requirements for
an authorized management services provider. The Commission may
accept licensing by another jurisdiction, specifically determined
by the Commission to have similar licensing requirements, as
evidence the applicant meets authorized management services
provider licensing requirements.
(c) Management service provider specifications. -- An
applicant for a license to provide management services to a
racetrack table games licensee shall demonstrate that the
management services that the applicant plans to offer to the
racetrack table games licensee conform or will conform to standards
established by rules of the Commission and applicable state law.
The Commission may accept management services provider approval by
another jurisdiction, specifically determined by the Commission to
have management services, as evidence the applicant meets the
standards established by the Commission and applicable state law.
(d) License application requirements. -- An applicant for a
license to provide management services to a racetrack table games
licensee shall:
(1) Submit an application to the Commission in the form
required by the Commission including adequate information to serve
as a basis for a thorough background check;
(2) Submit fingerprints for a national criminal records check
by the Criminal Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation. The fingerprints
shall be furnished by all persons required to be named in the
application and shall be accompanied by a signed authorization for
the release of information by the Criminal Investigation Bureau and
the Federal Bureau of Investigation. The Commission may require
any applicant seeking the renewal of a license or permit to furnish
fingerprints for a national criminal records check by the Criminal
Identification Bureau of the West Virginia State Police and the
Federal Bureau of Investigation; and
(3) Pay to the Commission a nonrefundable application and
license fee for deposit into the Racetrack Table Games Fund in the
amount of one hundred dollars, which shall be in lieu of the first
year's license fee provided in subsection (f) of this section.
(e) Authorization. -- A license to provide management services
to a racetrack table games licensee authorizes the licensee to
provide management services to a racetrack with authorized table
games while the license is active. The Commission may by rule
establish the conditions which constitute an emergency under which
the Commission may issue provisional licenses pending completion of
final action on an application.
(f) Fees, expiration date and renewal. -- A licensed provider
of management services shall pay to the Commission an annual
license fee of one hundred dollars for an initial term beginning
prior to the date of the provider's first contract with a racetrack table games licensee and continuing through the end of the twelfth
month thereafter whenever the licensee has paid the renewal fee and
has continued to comply with all applicable statutory and rule
requirements. The Commission shall renew a license to provide
management services to a racetrack with authorized table games
annually thereafter. A racetrack table games licensee may continue
to use the management services provided by the management services
provider while that provider was licensed, notwithstanding the
expiration of the provider's license, unless the Commission finds
with the services provided are not conforming to standards
established by rule of the Commission and applicable state law.
§29-22C-14. License prohibitions.
(a) The Commission may not grant any license pursuant to the
provisions of this article if evidence satisfactory to the
Commission exists that the applicant:
(1) Has knowingly made a false statement of a material fact to
the Commission;
(2) Has been suspended from operating a gambling game, gaming
device or gaming operation, or had a license revoked in another
jurisdiction by a board or other governmental authority of that
jurisdiction having responsibility for the regulation of gambling
or gaming activities; or
(3) Has been convicted of a crime of moral turpitude, a
gambling-related offense, a theft or fraud offense, or has otherwise demonstrated, either by a police record or other
satisfactory evidence, a lack of respect for law and order;
(b) In the case of an applicant for a license to supply a
racetrack with authorized table games, the Commission may deny a
license to any applicant, reprimand any licensee or suspend or
revoke a license:
(1) If the applicant or licensee has not demonstrated to the
satisfaction of the Commission financial responsibility sufficient
to adequately meet the requirements of the proposed enterprise;
(2) If the applicant or licensee is not the true owner of the
business or is not the sole owner and has not disclosed the
existence or identity of other persons who have an ownership
interest in the business; or
(3) If the applicant or licensee is a corporation which sells
more than five percent of a licensee's voting stock, or more than
five percent of the voting stock of a corporation which controls
the licensee, or sells a licensee's assets, other than those bought
and sold in the ordinary course of business, or any interest in the
assets, to any person not already determined by the Commission to
have met the qualifications of a licensee under this article.
(c) In the case of an applicant for a racetrack table games
license, the Commission may deny a license to any applicant,
reprimand any licensee or suspend or revoke a license:
(1) If the applicant or licensee knowingly employs an individual in a job classification which includes table games
management duties who has been convicted of a crime of moral
turpitude, a gambling-related offense, or a theft or fraud offense
under the laws of this state, another state, the United States or
a territory of the United States or knowingly employs any
individual in a job classification which includes table games
management duties who has had a license relating to the operation
of a gaming activity revoked by this state or any other state; or
(2) If the applicant or licensee is not the true owner of the
business or is not the sole owner and has not disclosed the
existence or identity of other persons who have an ownership
interest in the business; or
(3) If the applicant or licensee is a corporation, which sells
more than five percent of a licensee's voting stock, or more than
five percent of the voting stock of a corporation which controls
the licensee or sells a licensee's assets, other than those bought
and sold in the ordinary course of business, or any interest in the
assets, to any person not already determined by the Commission to
have met the qualifications of a licensee under this article,
unless the sale has been approved in advance by the Commission.
§29-22C-15. License denial, revocation, suspension and reprimand.
(a) Notwithstanding the provisions of subsection (b), section
twelve of this article, the Commission may deny a license to any
applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee, or any person having control of the
applicant or licensee:
(1) Fraudulently or deceptively obtains or attempts to obtain
a license for the applicant or licensee or another person;
(2) Fraudulently or deceptively uses a license;
(3) Is convicted of a felony under the laws of this state,
another state, the United States or a territory of the United
States; or
(4) Is convicted of a misdemeanor under the laws of this
state, another state, the United States or a territory of the
United States for gambling or gambling related activity.
(b) Instead of or in addition to reprimanding a licensee or
suspending or revoking a license, the Commission may impose a civil
penalty under section thirty of this article.
§29-22C-16. Hearing procedures.
(a) Right to a hearing. -- Except as otherwise provided by
law, before the Commission takes any adverse action involving a
licensee under the provisions of this article, it shall give the
persons against whom the action is contemplated an opportunity for
a hearing before the Commission or a hearing examiner designated by
the Commission.
(b) Notice of hearing and right to counsel. -- The Commission
shall give notice and hold the hearing in accordance with article
five, chapter twenty-nine-a of this code. The notice shall be sent to the person by certified mail addressed to the last known address
of the person at least thirty days before the hearing. The person
may be represented at the hearing by legal counsel.
(c) Failure to comply with subpoena. -- If a person fails to
comply with a subpoena issued for purposes of this section, on
petition of the Commission, the circuit court may compel obedience
to the subpoena. If after due notice the person against whom the
action is contemplated fails or refuses to appear or provide the
item or items for which a subpoena duces tecum was issued, the
Commission or the Commission's designated hearing examiner may hear
and determine the matter.
(d) Appeal. -- Any person aggrieved by a final order or
decision of the Commission in a contested case may file a petition
for appeal in the circuit court of Kanawha County within thirty
days after the person received notice of the final order or
decision, as provided in section four, article five, chapter
twenty-nine-a of this code.
§29-22C-17. Notice of license expiration and renewal.
(a) At least two months before any license issued under this
article expires, the Commission shall send to the licensee, by mail
addressed to the last known address of the licensee, a renewal
application form and notice that states:
(1) The date on which the current license expires;
(2) The date by which the Commission must receive the renewal application for the renewal to be issued and mailed before the
existing license expires; and
(3) The amount of the renewal fee.
§29-22C-18. Miscellaneous license provisions.
(a) The Commission shall include on each license that it
issues:
(1) The type of license;
(2) The identity and address of the licensee;
(3) The effective date of the license;
(4) For employee licenses, the picture of the licensee; and
(5) Any other information the Commission considers
appropriate.
(b) Each racetrack table games licensee, licensed supplier of
a racetrack with authorized table games or a licensed management
services provider shall display the license conspicuously in its
place of business or have the license readily available for
inspection at the request of any agent of the Commission or of a
state, local or municipal law-enforcement agency.
(c) Each holder of a license to be employed by a racetrack
with authorized table games shall carry the license on his or her
person at all times when present in a racetrack with authorized
table games and, if required by rules adopted by the Commission
with respect to the particular capacity in which the licensee is
employed, have some indicia of licensure prominently displayed on his or her person in accordance with rules of the Commission.
(d) Each person licensed under this article shall give the
Commission written notice of any change of address or any change of
any other information provided in the licensee's application for a
license or for renewal of a license, as soon as the effective date
of the change is known to the licensee but not later than thirty
days after the change occurs.
§29-22C-19. Emergency legislative rules.
(a) The Commission shall propose for promulgation legislative
rules in accordance with the provisions of article three, chapter
twenty-nine-a of this code, as the Commission considers necessary
to provide for the successful implementation and enforcement of the
provisions of this article.
(b) Any rule proposed by the Commission before the first day
of September, two thousand five, may be promulgated as an emergency
rule, which shall be effective when notice of the emergency rule is
filed in the state register published by the Secretary of State.
§29-22C-20. Game rules of play.
(a) Each racetrack licensed to operate table games shall have
written rules of play for each table game it operates that are
approved by the Commission before the table game is offered to the
public. Rules of play proposed by a racetrack table games licensee
may be approved, amended or rejected by the Commission.
(b) All authorized table games shall be conducted according to the specific rules of play approved by the Commission. All wagers
and pay-offs of winning wagers shall be made according to those
rules of play, which shall establish any limitations necessary to
assure the vitality of table games operations.
(c) Each racetrack table game licensee shall make available in
printed form to any patron, upon request of the patron, the
complete text of the rules of play of any authorized table game in
operation at its racetrack facility, pay-offs of winning wagers,
and any other advice to the player required by the Commission.
§29-22C-21. Betting limits; operations and services.
(a) A racetrack licensee may, in the exercise of its business
judgment, determine and establish the following:
(1) Minimum and maximum wagers;
(2) Advertising and promotional activities, and the offering
of complimentaries to players, subject to the standards provided in
section twenty-three of this article and rules of the Commission;
(3) Hours of operation;
(4) The days during which games may be played; and
(5) Currency denominations accepted by any mechanical or
electronic bill acceptors.
(b) The Commission may establish the following parameters for
any situation or for any Commission regulated game played at a
licensed racetrack:
(1) Minimum and maximum payout percentages;
(2) Any probability limits of obtaining the maximum payout for
a particular play; and
(3) Limitations on the types and sizes of financial
transactions a racetrack can enter into with its patrons.
§29-22C-22. Posting of betting limits.
A racetrack table game licensee shall conspicuously post a
sign at each authorized table game indicating the permissible
minimum and maximum wagers pertaining at that table. A racetrack
table games licensee may not require any wager to be greater than
the stated minimum or less than the stated maximum. However, any
wager actually made by a patron and not rejected by a racetrack
table games licensee prior to the commencement of play shall be
treated as a valid wager.
§29-22C-23. Complimentaries.
(a) No racetrack table games licensee shall offer or provide
any complimentary service, gift, cash or other item of value to any
person unless:
(1) The complimentary consists of room, food, beverage or
entertainment expenses provided directly to the patron and his or
her guests by the racetrack table games licensee or indirectly to
the patron and his or her guests on behalf of the licensee by a
third party;
(2) The complimentary consists of documented transportation
expenses provided directly to the patron and his or her guests on behalf of a racetrack table games licensee by a third party,
provided that the licensee complies with rules promulgated by the
Commission to ensure that a patron's and his or her guests'
documented transportation expenses are paid for or reimbursed only
once; or
(3) The complimentary consists of coins, tokens, cash or other
complimentary items or services provided through any complimentary
distribution program, the terms of which shall be filed with the
Commission upon implementation of the program or maintained
pursuant to Commission rule. Any change in the terms of a
complimentary program shall be filed with the Commission upon
implementation of the change.
(b) Notwithstanding subsection (a) of this section, a
racetrack table games licensee may offer and provide complimentary
cash or noncash gifts that are not otherwise included in said
subsection to any person: Provided, That any complimentary cash or
noncash gifts in excess of an amount per trip to be set by
interpretive rule of the Commission, are supported by documentation
regarding the reason the gift was provided to the patron and his or
her guests, including where applicable a patron's player rating.
The documentation shall be maintained by a racetrack table games
licensee in accordance with Commission rules. For purposes of this
subsection, all gifts presented to a patron and a patron's guests
directly by the racetrack table games licensee or indirectly on behalf of the licensee by a third party within any five-day period
shall be considered to have been made during a single trip.
§29-22C-24. Law enforcement.
(a) Generally. -- Notwithstanding any provision of this code
to the contrary, the Commissioner may by contract or cooperative
agreements with state law-enforcement agencies arrange for those
law-enforcement services that are necessary to enforce the
provisions of this article.
(b) Costs. -- The cost of services provided by a State
Law-Enforcement Agency pursuant to a contract or cooperative
agreement shall be paid from the Racetrack Table Games Fund.
§29-22C-25. Inspection and seizure.
As a condition of licensure, to inspect or investigate for
criminal violations of this article or violations of the rules
promulgated by the Commission, the Commission's agents and the
State Police may each without notice and without warrant:
(1) Inspect and examine all premises of the racetrack with
authorized table games; or gaming devices; or the premises where
gaming equipment is manufactured, sold, distributed, or serviced;
or any premises in which any records of the activities are prepared
or maintained;
(2) Inspect any gaming equipment in, about, upon or around the
premises of a racetrack with authorized table games;
(3) Seize summarily and remove from the premises and impound any gaming equipment for the purposes of examination, inspection or
testing;
(4) Inspect, examine and audit all books, records, and
documents pertaining to a racetrack table games licensee's
operation;
(5) Summarily seize, impound or assume physical control of any
book, record, ledger, table game, gaming equipment or device, cash
box and its contents, counting room or its equipment, or racetrack
table games operations; and
(6) Inspect the person, and the person's personal effects
present on the grounds of a licensed racetrack with authorized
table games, of any holder of a license issued pursuant to this
article, while that person is present on the grounds of a licensed
racetrack with authorized table games.
§29-22C-26. Tax on privilege of operating authorized table games.
(a) Imposition and rate of tax. -- For the privilege of
holding a license under this article to operate table games, there
is levied and shall be collected from the racetrack table games
licensee the annual privilege tax imposed by this section. The tax
shall be twenty-three and one-half percent of the licensee's
adjusted gross receipts from the operation of table games. For
purposes of calculating the amount of tax due under this section,
the licensee shall use the accrual method of accounting.
(b) Tax returns and payment of tax. --
(1) The annual tax levied by subsection (a) of this section is
due and payable in weekly installments on or before the Wednesday
of the calendar week following the week in which the adjusted gross
receipts were received and the tax accrued.
(2) In addition to the rate of tax imposed by subsection (a)
of this section, each licensee shall make the following annual
payments to the following funds:
(A) Each licensee shall pay in weekly installments the annual
amount of sixty-two thousand five hundred dollars to the Commission
for deposit into the Compulsive Gambling Treatment Fund created in
section nineteen, article twenty-two-a of this chapter.
(B) Each licensee shall pay to the state Racing Commission in
weekly installments the annual amount of one hundred twenty-five
thousand dollars to be paid among the statutorily created regional
multicounty economic development authorities pursuant to rules
promulgated by the West Virginia Development Authority.
(3) The racetrack table games licensee shall, on or before
Wednesday of each week, make out and submit by electronic
communication to the Commission, a return for the preceding week,
in the form prescribed by the Commission, showing:
(A) The total gross receipts and adjusted gross receipts from
operation of authorized table games during that week;
(B) The amount of tax for which the racetrack table games
licensee is liable; and
(C) Any additional information necessary in the computation
and collection of the tax required by the Commission.
(4) The amount of tax shown to be due on the return shall be
remitted by electronic funds transfer simultaneously with the
filing of the return. All payments received pursuant to this
section shall be deposited in the Racetrack Table Games Fund.
(5) When adjusted gross receipts for a week is a negative
number because the winnings paid to patrons wagering on the
racetrack's table games exceeds the racetrack's gross receipts from
the purchase of table game tokens, chips or electronic media by
patrons, the Commission shall allow the licensee to, pursuant to
rules of the Commission, carry over the negative amount of adjusted
gross receipts to returns filed for subsequent weeks. The negative
amount of adjusted gross receipts may not be carried back to an
earlier week and the Commission is not required to refund any tax
received by the Commission, except when the licensee surrenders its
license to operate table games under this article and the
licensee's last return filed under this section shows negative
adjusted gross receipts. In that case, the Commission shall
multiply the amount of negative adjusted gross receipts by the
applicable rate of tax and pay the amount to the licensee, in
accordance with rules of the Commission.
(c) Tax imposed by this section is in lieu of other taxes. --
(1) With the exception of the ad valorem property tax collected under chapter eleven-a of this code, the tax imposed by
this section is in lieu of all other state taxes and fees imposed
on the operation of, or the proceeds from operation of, racetrack
table games, except as otherwise provided in this section.
The consumers sales and services tax imposed pursuant to
article fifteen, chapter eleven of this code, shall not apply to
the licensee's gross receipts from any wagering on table games
authorized pursuant to this article or to the licensee's purchase
of gaming equipment, supplies or services directly used in
operation of the table games authorized by this article. These
purchases are also exempt from the use tax imposed by article
fifteen-a, chapter eleven of this code.
(2) With the exception of the ad valorem property tax
collected under chapter eleven-a of this code, the tax imposed by
this section is in lieu of all local taxes and fees levied on or
imposed with respect to the privilege of offering table games to
the public, including, but not limited to, the municipal business
and occupation taxes and amusement taxes authorized by article
thirteen, chapter eight of this code, and the municipal sales and
service tax and use taxes authorized by article thirteen-c, chapter
eight of this code.
(d) Prohibition on credits. -- Notwithstanding any other
provision of this code to the contrary, no credit may be allowed
against the tax imposed by this section or against any other tax imposed by any other provision of this code for any investment in
gaming equipment, or for any investment in real property, or in
improvements to the real property, that is used in the operation of
authorized table games.
§29-22C-27. Racetrack Table Games Fund.
(a) There is created and established a special fund in the
State Treasury to be known as the Racetrack Table Games Fund. All
moneys received by the Commission from licensees and applicants
under this article and all tax collected under this article shall
be deposited with the State Treasurer and placed in the Racetrack
Table Games Fund. The Fund shall be an interest bearing account
with interest to be credited to and deposited in the Racetrack
Table Games Fund.
(b) All expenses of the Commission incurred in the
administration and enforcement of this article shall be paid from
the Racetrack Table Games Fund, including reimbursement of state
law-enforcement agencies for services performed at the request of
the Commission pursuant to this article. At no time may the
Commission's expenses associated with a particular racetrack with
authorized table games under this article exceed fifteen percent of
the total annual adjusted gross receipts received from that
licensee's operation of table games under this article, including,
but not limited to, all license fees or other amounts required to
be deposited in the Racetrack Table Games Fund attributable to the licensees operation of table games under this article. These
expenses shall either be allocated to the racetrack with authorized
table games for which the expense is incurred, if practicable, or
be treated as general expenses related to all racetrack table games
facilities and be allocated pro rata among the racetrack table
games facilities based on the ratio that annual adjusted gross
receipts from operation of table games at each racetrack with
authorized table games bears to total annual adjusted gross
receipts from operation of table games at all racetracks with
authorized table games during the fiscal year of the state. From
this allowance, the Commission shall deposit two hundred fifty
thousand dollars into the Compulsive Gambling Treatment Fund
created in section nineteen, article twenty-two-a of this chapter.
Also from this amount, the Commission shall pay into the West
Virginia Infrastructure Fund created in section nine, article
fifteen-a, chapter thirty-one of this code.
(c) The unencumbered balance of the Racetrack Table Games Fund
at the end of each fiscal year of the state shall be divided as
follows:
(1) Eighty-six percent shall be paid into the General Revenue
Fund to be appropriated by the Legislature:
Provided, That, within
the General Fund, five percent be directed to the Regional Jail and
Correctional Facility Authority, as provided for in article twenty,
chapter thirty-one of this code, to offset the cost of maintaining inmates and reduce the daily amount charged to counties for housing
inmates;
(2) Eight percent shall be paid to the special funds
established by each of the racetrack table games licensees for the
payment of regular racetrack purses. The total amount under this
subdivision shall be allocated pro rata to the special fund of each
racetrack table games licensee based on adjusted gross receipts
from each racetrack with authorized table games;
(3) Two percent shall be paid to the county where the
authorized racetrack table games are located;
(4) Two percent shall be paid to municipalities located within
the county where the authorized table games are located. The total
amount under this subdivision shall be allocated pro rata to each
municipality based on its population determined at the most recent
United States decennial census of population: Provided, That when
the municipality is physically located in two or more counties,
only that portion of its population residing in the country where
the authorized table games are located shall be considered;
(5) One-half percent shall be paid
among the statutorily
created regional multicounty economic development authorities
pursuant to rules promulgated by the West Virginia Development
Authority
; and
(6) One and one-half percent shall be paid to the Tourism
Promotion Fund established in section nine, article one, chapter five-b of this code.
§29-22C-28. Prohibition on unauthorized wagering.
(a) A racetrack table games licensee may receive wagers only
from an individual physically present in a designated gaming area
at licensed racetrack with authorized table games.
(b) All racetracks with authorized table games shall use a
method of wagering whereby the table game player's money for
wagering on table games is, at the request of the player, converted
to tokens, electronic cards or other electronic media, or chips at
the table or elsewhere at the licensed racetrack.
(1) The tokens, electronic cards or other electronic media, or
chips issued by a licensee racetrack with authorized table games
can only be used for wagering at that racetrack.
(2) Wagering on table games may not be conducted with money or
other negotiable currency, or with tokens, electronic cards or
other electronic media, or chips not issued by the racetrack where
the table games will be played.
(3) At the request of the player, the licensee shall convert
a player's tokens, electronic cards or other electronic media, or
chips back to money.
(4) The licensee may not charge a fee for converting a
player's money to an acceptable media for play at a gaming table,
or charge a fee for converting the acceptable media for wagering at
a gaming table back to money.
(c) No licensed racetrack employee may place a wager on any
table game at the employer's racetrack.
§29-22C-29. Offenses and penalties.
(a) A racetrack table games licensee is guilty of unlawful
operation when:
(1) The licensee operates a table game without authority of
the Commission to do so;
(2) The licensee operates an authorized table game in any
location that is not a designated gaming area approved by the
Commission;
(3) The licensee knowingly conducts, carries on, operates, or
exposes for play, or allows to be conducted, carried on, operated
or exposed for play any table game, or other device, equipment or
material that has in any manner been tampered with, or placed in a
condition, or operated in a manner, the result of which is designed
to deceive the public;
(4) The licensee employs an individual in a position, or to
perform duties, for which a license is required by this article or
rules of the Commission and the employee does not have a license
issued under the provisions of this article, or the licensee
continues to employ the individual in a position, or to perform
duties, for which a license is required by this article or rules of
the Commission, after the employee's license expired, was revoked
by the Commission or not renewed by the Commission;
(5) The licensee acts or employs another person to act as if
he or she is not an agent or employee of the licensee in order to
encourage participation in an authorized table game at the licensed
racetrack;
(6) The licensee knowingly permits an individual under the age
of twenty-one years of age to enter or remain in a designated
gaming area or to play racetrack video lottery terminals or table
games at a licensed racetrack authorized under this article to
operate table games; or
(7) The licensee exchanges tokens, chips, electronic media or
other forms of credit to be used for wagering at a licensed
racetrack authorized under this article to operate table games, for
anything of value except in exchange for money or credits to a
player's account.
(b) A person is guilty of a misdemeanor when:
(1) The person knowingly makes a false statement on any
application for a license under this article or on an application
for renewal of a license issued under this article;
(2) The person operates, carries on or exposes for play a
table game prior to obtaining a license, or after the person's
license has expired and prior to actual renewal of the license, or
before the table game and the licensee's rules for play of the game
are approved or modified and approved by the Commission; or
(3) The person works or is employed in a position requiring a license under the provisions of this article without having the
license required by this article.
(c) A person is guilty of a felony when:
(1) The person offers, promises, or gives anything of value or
benefit to a person who has an ownership or financial interest in,
is employed by, or has a service contract with, a racetrack with
authorized table games, or to that person's spouse or any dependent
child or dependent parent, pursuant to an agreement or arrangement,
in fact or implied from the circumstances, with intent that the
promise or thing of value or benefit will influence the actions of
the person in order to affect or attempt to affect the outcome of
an authorized table game, or to influence official action of the
Commission. For the purposes of this subdivision and subdivision
(2) of this subsection, the term "person who is connected with a
table games facility" includes, but is not limited to, a person
licensed under this article as well as an officer or employee of a
licensee;
(2) The person solicits or knowingly accepts or receives a
promise of anything of value or benefit while the person is
connected with a racetrack with authorized table games, pursuant to
an understanding or arrangement in fact or implied from the
circumstances, with the intent that the promise or thing of value
or benefit will influence the actions of the person to affect or
attempt to affect the outcome of an authorized table game, or to influence official action of the Commission; or
(3) The person uses, or possesses on property owned by the
licensed racetrack, or on property contiguous to the licensed
racetrack, with the intent to use, an electronic, electrical or
mechanical device that is designed, constructed or programmed to
assist the user or another person:
(A) In projecting the outcome of an authorized table game;
(B) In keeping track of the cards dealt or in play;
(C) In analyzing the probability of the occurrence of an event
relating to an authorized table game;
(D) In analyzing the strategy for playing or betting to be
used in an authorized table game, except as permitted in writing by
the Commission; or
(E) In obtaining an advantage at playing any table game at a
licensed racetrack authorized under this article to operate table
games.
(4) The person cheats during play of an authorized table game
at a licensed racetrack authorized under this article to operate
table games;
(5) The person manufactures, sells, or distributes any card,
chip, die, game or device, by whatever name called, that is
intended by that person to be used to violate any provision of this
article or the table gaming laws of any other state;
(6) The person instructs a person in cheating, or in the use of any card, chip, die or other device, by whatever name called,
for the purpose of cheating, at any table game with the knowledge
or intent that the information or use conveyed is to be employed to
cheat during play of any table game authorized by this article or
the play of any similar table gaming allowed under the laws of any
other state;
(7) The person places a bet after unlawfully acquiring
knowledge of the outcome of the authorized table game that is the
subject of the bet, or aids a person in acquiring that knowledge
for the purpose of placing a bet contingent on the outcome of a
table game authorized under this article;
(8) The person claims, collects, takes, or attempts to claim,
collect, or take anything of value into or from a racetrack with
authorized table games, with intent to defraud, without having made
a wager contingent on winning an authorized table game, or
knowingly claims, collects or takes an amount of money or thing of
value of greater value than the amount won;
(9) The person uses chips, electronic media or tokens that are
counterfeit to place a wager at a racetrack with authorized table
games;
(10) The person knowingly uses any medium to place a wager at
a racetrack licensed under this article other than tokens, chips,
electronic cards or other electronic media, or other method of
credit approved by the Commission and issued by the racetrack licensed under this article at which the wager is placed on an
authorized table game;
(11) The person, not a licensed racetrack under this article
or an employee or agent of a racetrack licensed under this article
acting in furtherance of the licensee's interest, has in his or her
possession on grounds owned by the racetrack licensed under this
article, or on grounds contiguous to the licensed racetrack, any
device, by whatever name called, intended to be used to violate a
provision of this article or a rule of the Commission implementing
or explaining a provision of this article; or
(12) The person, not a licensee or employee or agent of a
licensee acting in furtherance of the racetrack table games
licensee's interests, has in his or her possession any key or
device designed for the purpose of opening, entering or affecting
the operation of an authorized table game, drop box or an
electronic or mechanical device connected with or used in
connection with an authorized table game in a licensed racetrack or
for removing bills, tokens, chips or other contents therefrom.
(d) Any person who violates any provision of subsection (a) or
(b) of this section is guilty of a misdemeanor and, upon conviction
thereof, shall be fined not more than one thousand dollars and
committed to a state correctional facility for not more than six
months, except that in the case of a person other than a natural
person, the amount of the fine imposed may not be more than twenty-five thousand dollars.
(e) Any person who violates any provision of subsection (c) of
this section is guilty of a felony and, upon conviction thereof,
shall be fined not less than five thousand dollars nor more than
ten thousand dollars and committed to a state correctional facility
for a term of imprisonment not less than one year nor more than
five years.
(f) With regard to subdivision (3), subsection (c) of this
section, each racetrack table games licensee shall post notice of
this prohibition and the penalties of this section in a manner
determined by the Commission.
§29-22C-30. Forfeiture of property.
(a) Anything of value, including all traceable proceeds,
including, but not limited to, real and personal property, moneys,
negotiable instruments, securities and conveyances, is subject to
forfeiture to the State of West Virginia if the item is used for
any of the following:
(1) As a bribe intended to affect the outcome of an authorized
table game in a licensed racetrack; or
(2) In exchange for, or to facilitate, a violation of this
article.
(b) The Legislature finds and declares that the seizure and
sale of items under the provisions of this section is not
contemplated to be a forfeiture as that term is used in section 5, article XII of the West Virginia Constitution and, to the extent
that a seizure and sale may be found to be such a forfeiture, the
Legislature hereby finds and declares that the proceeds from a
seizure and sale under this article are not part of net proceeds as
it is contemplated by section 5, article XII of the West Virginia
Constitution.
(c) If the forfeited property includes the racetrack real
property and all of its improvements and related personal property,
the Commission may take control of and operate the racetrack and
all related functions until the forfeited property is sold or is
returned to the licensee as a result of due process proceedings.
(d) Subsection (a) of this section does not apply if the act
or omission that gives rise to the forfeiture is committed or
omitted without the actual or reasonably implied knowledge or
consent of the owner of the property to be forfeited.
§29-22C-31. Civil penalties.
(a) The Commission may impose on any person who violates the
provisions of this article a civil penalty not to exceed fifty
thousand dollars for each violation, whether or not the person is
licensed under this article.
(b) The provisions of article five, chapter twenty-nine-a of
this code apply to any civil penalty imposed pursuant to the
provisions of this section.
§29-22C-32. Preemption.
No local law or rule providing any penalty, disability,
restriction, regulation or prohibition for operating a racetrack
with authorized table games or supplying a licensed racetrack may
be enacted, and the provisions of this article preempt all
regulations, rules, ordinances and laws of any county or
municipality in conflict with this article.
§29-22C-33. Exemption from federal law.
Pursuant to section 2 of chapter 1194, 64 Stat. 1134, 15
U.S.C. 1172, approved January 2, 1951, the State of West Virginia,
acting by and through duly elected and qualified members of the
Legislature, does declare and proclaim that the state is exempt
from chapter 1194, 64 Stat. 1134, 15 U.S.C. 1171 to 1178.
§29-22C-34. Shipment of gambling devices.
All shipments of gambling devices, including video lottery
machines, to licensed racetracks in this state, the registering,
recording, and labeling of which have been completed by the
manufacturer or dealer thereof in accordance with Chapter 1194, 64
Stat. 1134, 15 U. S. C. §1171 to §1178, are legal shipments of
gambling devices into the State of West Virginia.