Senate Bill No. 681

(By Senator Sprouse)

____________

[Introduced February 20, 2006; referred to the Committee

on the Judiciary; and then to the Committee on Finance.]

____________




A BILL to amend and reenact §29-22B-1101 and §29-22B-1102 of the Code of West Virginia, 1931, as amended, all relating to the reduction of video lottery terminals; limiting the number of permits that may be authorized; and providing for permits by fraternal societies and veterans' organizations.

Be it enacted by the Legislature of West Virginia:
That §29-22B-1101 and §29-22B-1102 of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:
ARTICLE 22B. LIMITED VIDEO LOTTERY.
PART 11. ALLOCATION AND DISTRIBUTION

OF VIDEO LOTTERY TERMINALS.

§29-22B-1101. Limitation on number and location of video lottery terminals.

(a) The Lottery Commission may not authorize the placement of more than nine thousand video lottery terminals in restricted access adult-only facilities in this state: Provided, That the number of video lottery terminals that may be authorized shall be reduced to three thousand by the first day of January, two thousand thirteen.
(b) No person may directly or indirectly operate more than seven and one-half percent of the number of video lottery terminals authorized in this section, which shall be located only in restricted access adult-only facilities.
(c) No licensed limited video lottery retailer may be authorized to have on the premises for which the license was issued more than five video lottery terminals except that a fraternal society or veteran's organization that is: (i) A fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended; (ii) a domestic fraternal society that is exempt from federal income tax under section 501(c)(10); or (iii) a veterans' organization that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code may be authorized to have on the premises for which the license was issued not more than ten video lottery terminals.
§29-22B-1102. Permits to operate video lottery terminals; expiration date; annual fee to be paid by May 1st.

(a) The Lottery Commission shall establish forms for an operator's permit to own or lease and operate video lottery terminals and a permit for a limited video lottery retailer that allows the holder to own or lease video lottery terminals from a licensed manufacturer. The number of video lottery terminals that a person may own or lease or have on a limited video lottery retailer premises shall be stated in the license or permit issued by the commission as provided in this article.
(b) Permits shall be issued by the commission for a period of ten years, except that all permits expire on the thirtieth day of June, 2011 two thousand eleven, unless they are sooner surrendered, modified, suspended or revoked as provided in this article: Provided, That the annual fee imposed by this part for each video lottery terminal authorized in the permit shall be paid on or before the first day of May each year: Provided, however, That upon expiration, the commission shall only issue, or reissue if the permit is surrendered, suspended or revoked prior to expiration, permits to a fraternal society or veterans' organization that is: (i) A fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended; (ii) a domestic fraternal society that is exempt from federal income tax under section 501(c)(10); or (iii) a veterans' organization that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code.



NOTE: The purpose of this bill is to reduce the number of video lottery terminals to 3,000 by the year 2013 and to limit issuance of future permits to only fraternal societies or veterans' organizations.

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