Senate Bill No. 681
(By Senator Sprouse)
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[Introduced February 20, 2006; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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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.