HB2882 H GO AM 3-24

HB2882 H GO AM 3-24
C. Roskovensky 3338
The committee on Government Organization moves to amend the bill on page seven, line fourteen, by striking everything after the enacting clause and inserting in lieu thereof the following:

"That §19-23-1, §19-23-2, §19-23-3, §19-23-4, §19-23-5, §19-23-6, §19-23-7, §19-23-7a, §19-23-8, §19-23-8a, §19-23-8b, §19-23- 8c, §19-23-9, §19-23-10, §19-23-11, §19-23-12, §19-23-12a, §19-23-12b, §19-23-12c, §19-23-13, §19-23-13a, §19-23-13b, §19-23-14, §19-23-15, §19-23-16, §19-23-17, §19-23-18, §19-23- 19, §19-23-20, §19-23-21, §19-23-22, §19-23-23, §19-23-24, §19-23-25, §19-23-26, §19-23-27, §19-23-28, §19-23-29, and §19-23-30 of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; to repeal §19-24- 1, §19-24-2, §19-24-2a, §19-23-3 and §19-23-4; to repeal §29- 5A-1, §29-5A-2, §29-5A-3, §29-5A-4, §29-5A-5, §29-5A-6, §29- 5A-7, §29-5A-8, §29-5A-9, §29-5A-10, §29-5A-11, §29-5A-12, §29-5A-13, §29-5A-14, §29-5A-15, §29-5A-16, §29-5A-17, §29-5A- 18, §29-5A-29, §29-5A-20, §29-5A-21, §29-5A-22, §29-5A-23, §29-5A-24, §29-5A-25 and §29-5A-26 of said code; to repeal §29-22-26 and §29-22-28 of said code; to repeal §29-22A-17; to repeal §47-20-1, §47-20-2, §47-20-3, §47-20-4, §47-20-5, §47- 20-6, §47-20-7, §47-20-8, §47-20-9, §47-20-10, §47-20-11, §47- 20-12, §47-20-13, §47-20-14, §47-20-15, §47-20-16, §47-20-17, §47-20-18, §47-20-19, §47-20-20, §47-20-21, §47-20-22, §47-20-23, §47-20-24, §47-20-25, §47-20-26, §47-20-27, §47-20-28, §47-20-29 and §47-20-30 of said code; to repeal §47-21-1, §47- 21-2, §47-21-3, §47-21-4, §47-21-5, §47-21-6, §47-21-7, §47- 21-8, §47-21-9, §47-21-10, §47-21-11, §47-21-12, §47-21-13, §47-21-14, §47-21-15, §47-21-16, §47-21-17, §47-21-18, §47-21- 19, §47-21-20, §47-21-21, §47-21-22, §47-21-23, §47-21-24, §47-21-25, §47-21-26, §47-21-27, §47-21-28, §47-21-29 and §47- 21-30 of said code; to repeal §47-23-1, §47-23-2, §47-23-3, §47-23-6, §47-23-7, §47-23-7a, §47-23-8, §47-23-9, §47-23-10, §47-23-11, §47-23-12, §47-23-13 and §47-23-14 of said code; to amend and reenact §5F-1-3a of said code; to amend and reenact §5F-2-1 of said code; to amend and reenact §6-7-2a of said code; to amend and reenact §8-13-8 of said code; to amend and reenact §11-9-2 and §11-9-2A of said code; to amend and reenact §11-12-2 of said code; to amend and reenact §11-23-7 of said code; to amend and reenact §11B-1-2 of said code; to amend and reenact of said code; to amend and reenact §29-22-1, §29-22-2, §29-22-3, §29-22-4, §29-22-5, §29-22-6, §29-22-7, §29-22-8, §29-22-13 and §29-22-19 of said code; to amend said code by adding thereto a new section, designated §29-22-8a; to amend and reenact §29-22A-3, §29-22A-7 and §29-22A-10 of said code; to amend and reenact §29-22B-306, §29-22B-308 and §29- 22B-335 of said code; to amend and reenact §29-22C-3 of said code; to amend said code by adding thereto thirty-four new sections designated §29-22D-1, §29-22D-2, §29-22D-3, §29-22D-4, §29-22D-5, §29-22D-6, §29-22D-7, §29-22D-8, §29-22D-9, §29- 22D-10, §29-22D-11, §29-22D-12, §29-22D-13, §29-22D-14, §29- 22D-15, §29-22D-16, §29-22D-17, §29-22D-18, §29-22D-19, §19- 22D-20, §29-22D-21, §29-22D-22, §29-22D-23, §29-22D-24, §29- 22D-25, §29-22D-26, §29-22D-27, §29-22D-28, §29-22D-29, §19- 22D-30, §29-22D-31, §29-22D-32, §29-22D-33 and §29-22D-34; to amend said code by adding thereto thirty new sections designated §29-22E-1, §29-22E-2, §29-22E-3, §29-22E-4, §29- 22E-5, §29-22E-6, §29-22E-7, §29-22E-8, §29-22E-9, §29-22E-10, §29-22E-11, §29-22E-12, §29-22E-13, §29-22E-14, §29-22E-15, §29-22E-16, §29-22E-17, §29-22E-18, §29-22E-19, §19-22E-20, §29-22E-21, §29-22E-22, §29-22E-23, §29-22E-24, §29-22E-25, §29-22E-26, §29-22E-27, §29-22E-28, §29-22E-29 and §19-22E-30 to amend said code by adding thereto thirteen new sections designated §29-22F-1, §29-22F-2, §29-22F-3, §29-22F-4, §29- 22F-5, §29-22F-6, §29-22F-7, §29-22F-8, §29-22F-9, §29-22F-10, §29-22F-11, §29-22F-12 and §29-22F-13 to amend said code by adding thereto twenty-four new sections designated §29-22G-1, §29-22G-2, §29-22G-3, §29-22G-4, §29-22G-5, §29-22G-6, §29- 22G-7, §29-22G-8, §29-22G-9, §29-22G-10, §29-22G-11, §29-22G- 12, §29-22G-13, §29-22G-14, §29-22G-15, §29-22G-16, §29-22G- 17, §29-22G-18, §29-22G-19, §19-22G-20, §29-22G-21, §29-22G- 22, §29-22G-23 and §29-22G-24; to amend said code by adding thereto thirty-six new sections designated §29-22H-1, §29-22H- 2, §29-22H-3, §29-22H-4, §29-22H-5, §29-22H-6, §29-22H-7, §29-22H-8, §29-22H-9, §29-22H-10, §29-22H-11, §29-22H-12, §29-22H- 13, §29-22H-14, §29-22H-15, §29-22H-16, §29-22H-17, §29-22H- 18, §29-22H-19, §29-22H-20, §29-22H-21, §29-22H-22, §29-22H- 23, §29-22H-24, §29-22H-25, §29-22H-26, §29-22H-27, §29-22H-28 and §29-22H-29; §29-22H-30, §29-22H-31, §29-22H-32, §29-22H- 33, §29-22H-34, §29-22H-35 and §29-22H-36; to amend said code by adding thereto five new sections designated §29-22I-1, §29- 22I-2, §29-22I-3, §29-22I-4, §29-22I-5, to amend and reenact §29-25-2 of said code; all to read as follows:

CHAPTER 5F. REORGANIZATION OF THE EXECUTIVE BRANCH.
ARTICLE 1. GENERAL PROVISIONS.
§5F-1-3a. Executive compensation commission.
There is ~~hereby created~~ continued an Executive Compensation Commission composed of three members, one of whom shall be the Secretary of Administration, one of whom shall be appointed by the Governor from the names of two or more nominees submitted by the President of the Senate, and one of whom shall be appointed by the Governor from the names of two or more nominees submitted by the Speaker of the House of Delegates. The names of ~~such~~ the nominees shall be submitted to the Governor by not later than the June 1, 2000, and the appointment of ~~such~~ the members shall be made by the Governor by not later than July 1, 2000. The members appointed by the Governor shall have had significant business management experience at the time of their appointment and shall serve without compensation other than reimbursement for their reasonable expenses necessarily incurred in the performance of their commission duties. For the regular session of the Legislature, two thousand one, and every four years thereafter, the commission shall review the compensation for cabinet secretaries and other appointed officers of this state, including, but not limited to, the following: Commissioner, Division of Highways; Commissioner, Bureau of Employment Programs; ~~Director, Division of Environmental Protection;~~ Commissioner, Bureau of Senior Services; Director of Tourism; Commissioner, Division of Tax; Administrator, Division of Health; Commissioner, Division of Corrections; Director, Division of Natural Resources; Superintendent, State Police; ~~administrator, lottery division;~~ Director, Gaming and Racing Control Agency; Director, Public Employees Insurance Agency; Administrator, Alcohol Beverage Control Commission; Commissioner, Division of Motor Vehicles; Director, Division of Personnel; Adjutant General; ~~Chairman,~~ Chair, Health Care Authority; members, Health Care Authority; Director, Division of Rehabilitation Services; Executive Director, Educational Broadcasting Authority; Executive Secretary, Library Commission; ~~chairman~~ Chair and members of the Public Service Commission; Director of Emergency Services; Administrator, Division of Human Services; Executive Director, Human Rights Commission; Director, Division of Veterans Affairs; Director, Office of Miner's Health Safety and Training; Commissioner, Division of Banking; Commissioner, Division of Insurance; Commissioner, Division of Culture and History; Commissioner, Division of Labor; Director, Prosecuting Attorneys Institute; Director, Board of Risk and Insurance Management; Commissioner, Oil and Gas Conservation Commission; Director, Geological and Economic Survey; Executive Director, Water Development Authority; Executive Director, Public Defender Services; Director, State Rail Authority; ~~chairman~~ Chair and members of the Parole Board; members, Employment Security Review Board; ~~members, workers' compensation appeal board; chairman, racing commission;~~ Chair and members, Gaming and Racing Control Commission; Executive Director, Women's Commission; and Director, Hospital Finance Authority.
Following this review, but not later than the twenty-first day of ~~such~~ the regular session, the commission shall submit an executive compensation report to the Legislature to include specific recommendations for adjusting the compensation for the officers described in this section. The recommendation may be in the form of a bill to be introduced in each house to amend this section to incorporate the recommended adjustments.
ARTICLE 2. TRANSFER OF AGENCIES AND BOARDS
§ 5F-2-1. Transfer and incorporation of agencies and boards; funds.
(a) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are incorporated in and administered as a part of the Department of Administration:
(1) Building Commission provided in article six, chapter five of this code;
(2) Public Employees Insurance Agency and Public Employees Insurance Agency Advisory Board provided in article sixteen, chapter five of this code;
(3) Governor's Mansion Advisory Committee provided for in article five, chapter five-a of this code;
(4) Commission on Uniform State Laws provided in article one- a, chapter twenty-nine of this code;
(5) West Virginia Public Employees Grievance Board provided for in article three, chapter six-c of this code;
(6) Board of Risk and Insurance Management provided for in article twelve, chapter twenty-nine of this code;
(7) Boundary Commission provided in article twenty-three, chapter twenty-nine of this code;
(8) Public Defender Services provided in article twenty-one, chapter twenty-nine of this code;
(9) Division of Personnel provided in article six, chapter twenty-nine of this code;
(10) The West Virginia Ethics Commission provided in article two, chapter six-b of this code;
(11) Consolidated Public Retirement Board provided in article ten-d, chapter five of this code; and
(12) Real Estate Division provided in article ten, chapter five-a of this code.
(b) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are incorporated in and administered as a part of the Department of Commerce:
(1) Division of Labor provided in article one, chapter twenty- one of this code, which includes:
(A) Occupational Safety and Health Review Commission provided in article three-a, chapter twenty-one of this code; and
(B) Board of Manufactured Housing Construction and Safety provided in article nine, chapter twenty-one of this code;
(2) Office of Miners' Health, Safety and Training provided in article one, chapter twenty-two-a of this code. The following boards are transferred to the Office of Miners' Health, Safety and Training for purposes of administrative support and liaison with the Office of the Governor:
(A) Board of Coal Mine Health and Safety and Coal Mine Safety and Technical Review Committee provided in article six, chapter twenty-two-a of this code;
(B) Board of Miner Training, Education and Certification provided in article seven, chapter twenty-two-a of this code; and
(C) Mine Inspectors' Examining Board provided in article nine, chapter twenty-two-a of this code;
(3) The West Virginia Development Office, which includes the Division of Tourism and the Tourism Commission provided in article two, chapter five-b of this code;
(4) Division of Natural Resources and Natural Resources Commission provided in article one, chapter twenty of this code;
(5) Division of Forestry provided in article one-a, chapter nineteen of this code;
(6) Geological and Economic Survey provided in article two, chapter twenty-nine of this code; and
(7) Workforce West Virginia provided in chapter twenty-one-a of this code, which includes:
(A) Division of Unemployment Compensation;
(B) Division of Employment Service;
(C) Division of Workforce Development; and
(D) Division of Research, Information and Analysis; and
(8) Division of Energy provided in article two-f, chapter five-b of this code.
(c) The Economic Development Authority provided in article fifteen, chapter thirty-one of this code is continued as an independent agency within the executive branch.
(d) The Water Development Authority and Board provided in article one, chapter twenty-two-c of this code is continued as an independent agency within the executive branch.
(e) The following agencies and boards, including all of the allied, advisory and affiliated entities, are transferred to the Department of Environmental Protection for purposes of administrative support and liaison with the Office of the Governor:
(1) Air Quality Board provided in article two, chapter twenty- two-b of this code;
(2) Solid Waste Management Board provided in article three, chapter twenty-two-c of this code;
(3) Environmental Quality Board, or its successor board, provided in article three, chapter twenty-two-b of this code;
(4) Surface Mine Board provided in article four, chapter twenty-two-b of this code;
(5) Oil and Gas Inspectors' Examining Board provided in article seven, chapter twenty-two-c of this code;
(6) Shallow Gas Well Review Board provided in article eight, chapter twenty-two-c of this code; and
(7) Oil and Gas Conservation Commission provided in article nine, chapter twenty-two-c of this code.
(f) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are incorporated in and administered as a part of the Department of Education and the Arts:
(1) Library Commission provided in article one, chapter ten of this code;
(2) Educational Broadcasting Authority provided in article five, chapter ten of this code;
(3) Division of Culture and History provided in article one, chapter twenty-nine of this code;
(4) Division of Rehabilitation Services provided in section two, article ten-a, chapter eighteen of this code.
(g) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are incorporated in and administered as a part of the Department of Health and Human Resources:
(1) Human Rights Commission provided in article eleven, chapter five of this code;
(2) Division of Human Services provided in article two, chapter nine of this code;
(3) Bureau for Public Health provided in article one, chapter sixteen of this code;
(4) Office of Emergency Medical Services and Advisory Council provided in article four-c, chapter sixteen of this code;
(5) Health Care Authority provided in article twenty-nine-b, chapter sixteen of this code;
(6) Commission on Mental Retardation provided in article fifteen, chapter twenty-nine of this code;
(7) Women's Commission provided in article twenty, chapter twenty-nine of this code; and
(8) The Child Support Enforcement Division provided in chapter forty-eight of this code.
(h) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are incorporated in and administered as a part of the Department of Military Affairs and Public Safety:
(1) Adjutant General's Department provided in article one-a, chapter fifteen of this code;
(2) Armory Board provided in article six, chapter fifteen of this code;
(3) Military Awards Board provided in article one-g, chapter fifteen of this code;
(4) West Virginia State Police provided in article two, chapter fifteen of this code;
(5) Division of Homeland Security and Emergency Management and Disaster Recovery Board provided in article five, chapter fifteen of this code and Emergency Response Commission provided in article five-a of said chapter;
(6) Sheriffs' Bureau provided in article eight, chapter fifteen of this code;
(7) Division of Corrections provided in chapter twenty-five of this code;
(8) Fire Commission provided in article three, chapter twenty- nine of this code;
(9) Regional Jail and Correctional Facility Authority provided in article twenty, chapter thirty-one of this code;
(10) Board of Probation and Parole provided in article twelve, chapter sixty-two of this code; and
(11) Division of Veterans' Affairs and Veterans' Council provided in article one, chapter nine-a of this code.
(i) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are incorporated in and administered as a part of the Department of Revenue:
(1) Tax Division provided in article one, chapter eleven of this code;
(2) ~~Racing Commission provided in article twenty-three, chapter nineteen of this code~~ Gaming and Racing Control Commission and the Gaming and Racing Control Agency provided in article twenty-two, chapter twenty-nine of this code;
~~(3) Lottery Commission and position of Lottery Director provided in article twenty-two, chapter twenty-nine of this code;~~
~~(4)~~ (3) Agency of Insurance Commissioner provided in article two, chapter thirty-three of this code;
~~(5)~~ (4) Office of Alcohol Beverage Control Commissioner provided in article sixteen, chapter eleven of this code and article two, chapter sixty of this code;
~~(6)~~ (5) Board of Banking and Financial Institutions provided in article three, chapter thirty-one-a of this code;
~~(7)~~ (6) Lending and Credit Rate Board provided in chapter forty-seven-a of this code;
~~(8)~~ (7) Division of Banking provided in article two, chapter thirty-one-a of this code;
~~(9)~~ (8) The State Budget Office provided in article two of this chapter;
~~(10)~~ (9) The Municipal Bond Commission provided in article three, chapter thirteen of this code; and
~~(11)~~ (10) The Office of Tax Appeals provided in article ten-a, chapter eleven of this code; ~~and~~
~~(12) The State Athletic Commission provided in article five-a, chapter twenty-nine of this code.~~
(j) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are incorporated in and administered as a part of the Department of Transportation:
(1) Division of Highways provided in article two-a, chapter seventeen of this code;
(2) Parkways, Economic Development and Tourism Authority provided in article sixteen-a, chapter seventeen of this code;
(3) Division of Motor Vehicles provided in article two, chapter seventeen-a of this code;
(4) Driver's Licensing Advisory Board provided in article two, chapter seventeen-b of this code;
(5) Aeronautics Commission provided in article two-a, chapter twenty-nine of this code;
(6) State Rail Authority provided in article eighteen, chapter twenty-nine of this code; and
(7) Port Authority provided in article sixteen-b, chapter seventeen of this code.
(k) Except for powers, authority and duties that have been delegated to the secretaries of the departments by the provisions of section two of this article, the position of administrator and the powers, authority and duties of each administrator and agency are not affected by the enactment of this chapter.
(l) Except for powers, authority and duties that have been delegated to the secretaries of the departments by the provisions of section two of this article, the existence, powers, authority and duties of boards and the membership, terms and qualifications of members of the boards are not affected by the enactment of this chapter. All boards that are appellate bodies or are independent decisionmakers ~~shall~~ may not have their appellate or independent decision-making status affected by the enactment of this chapter.
(m) Any department previously transferred to and incorporated in a department by prior enactment of this section means a division of the appropriate department. Wherever reference is made to any department transferred to and incorporated in a department created in section two, article one of this chapter, the reference means a division of the appropriate department and any reference to a division of a department so transferred and incorporated means a section of the appropriate division of the department.
(n) When an agency, board or commission is transferred under a bureau or agency other than a department headed by a secretary pursuant to this section, that transfer is solely for purposes of administrative support and liaison with the office of the Governor, a department secretary or a bureau. Nothing in this section extends the powers of department secretaries under section two of this article to any person other than a department secretary and nothing limits or abridges the statutory powers and duties of statutory commissioners or officers pursuant to this code.
CHAPTER 6. GENERAL PROVISIONS RESPECTING OFFICERS.
ARTICLE 7. COMPENSATION AND ALLOWANCES.
§6-7-2a. Terms of certain appointive state officers; appointment; qualifications; powers and salaries of ~~such~~ the officers.
(a) Each of the following appointive state officers named in this subsection shall be appointed by the Governor, by and with the advice and consent of the Senate. Each of the appointive state officers serves at the will and pleasure of the Governor for the term for which the Governor was elected and until the respective state officers' successors have been appointed and qualified. Each of the appointive state officers are subject to the existing qualifications for holding each respective office and each has and is ~~hereby~~ granted all of the powers and authority and shall perform all of the functions and services ~~heretofore~~ vested in and performed by virtue of existing law respecting each office.
Prior to July 1, 2006, each ~~such~~ the named appointive state officer shall continue to receive the annual salaries they were receiving as of the effective date of the enactment of this section in 2006, and thereafter, notwithstanding any other provision of this code to the contrary,
The annual salary of each named appointive state officer shall be as follows:
Commissioner, Division of Highways, $92,500; Commissioner, Division of Corrections, $80,000; Director, Division of Natural Resources, $75,000; Superintendent, State Police, $85,000; Commissioner, Division of Banking, $75,000; Commissioner, Division of Culture and History, $65,000; Commissioner, Alcohol Beverage Control Commission, $75,000; Commissioner, Division of Motor Vehicles, $75,000; Chairman, Health Care Authority, $80,000; members, Health Care Authority, $70,000; Director, Human Rights Commission, $55,000; Commissioner, Division of Labor, $70,000; Director, Division of Veterans' Affairs, $65,000; Chairperson, Board of Parole, $55,000; members, Board of Parole, $50,000; members, Employment Security Review Board, $17,000; and Commissioner, Bureau of Employment Programs, $75,000. Secretaries of the departments shall be paid an annual salary as follows: Health and Human Resources, $95,000; Transportation, $95,000: Provided, That if the same person is serving as both the Secretary of Transportation and the Commissioner of Highways, he or she shall be paid $120,000; Revenue, $95,000; Military Affairs and Public Safety, $95,000; Administration, $95,000; Education and the Arts, $95,000; Commerce, $95,000; and Environmental Protection, $95,000: Provided, however, That any increase in the salary of any current appointive state officer named in this subsection pursuant to the reenactment of this subsection during the regular session of the Legislature in 2006, that exceeds $5,000 shall be paid to ~~such~~ the officer or his or her successor beginning July 1, 2006, in annual increments of $5,000 per fiscal year, up to the maximum salary provided in this subsection: Provided further, That if the same person is serving as both the Secretary of Transportation and the Commissioner of Highways, then the annual increments of $5,000 per fiscal year do not apply.
(b) Each of the state officers named in this subsection shall continue to be appointed in the manner prescribed in this code and, prior to July 1, 2006, each of the state officers named in this subsection shall continue to receive the annual salaries he or she was receiving as of the effective date of the enactment of this section in 2006, and shall thereafter, notwithstanding any other provision of this code to the contrary, be paid an annual salary as follows:
Director, Board of Risk and Insurance Management, $80,000; Director, Division of Rehabilitation Services, $70,000; Director, Division of Personnel, $70,000; Executive Director, Educational Broadcasting Authority, $75,000; Secretary, Library Commission, $72,000; Director, Geological and Economic Survey, $75,000; Executive Director, prosecuting attorneys Institute, $70,000; Executive Director, Public Defender Services, $70,000; Commissioner, Bureau of Senior Services, $75,000; Director, State Rail Authority, $65,000; Executive Director, Women's Commission, $45,000; Director, Hospital Finance Authority, $35,000; ~~member, Racing Commission, twelve thousand dollars;~~ Chairman, Public Service Commission, $85,000; members, Public Service Commission, $85,000; Director, Division of Forestry, $75,000; Director, Division of Juvenile Services, $80,000; and Executive Director, Regional Jail and Correctional Facility Authority, $80,000: Provided, That any increase in the salary of any current appointive state officer named in this subsection pursuant to the reenactment of this subsection during the regular session of the Legislature in 2006 that exceeds $5,000 shall be paid to ~~such~~ the officer or his or her successor beginning July 1, 2006, in annual increments of $5,000 per fiscal year, up to the maximum salary provided in this subsection.
(c) Each of the following appointive state officers named in this subsection shall be appointed by the Governor, by and with the advice and consent of the Senate. Each of the appointive state officers serves at the will and pleasure of the Governor for the term for which the Governor was elected and until the respective state officers' successors have been appointed and qualified. Each of the appointive state officers are subject to the existing qualifications for holding each respective office and each has and is ~~hereby~~ granted all of the powers and authority and shall perform all of the functions and services ~~heretofore~~ vested in and performed by virtue of existing law respecting each office.
Prior to July 1, 2006, each ~~such~~ named appointive state officer shall continue to receive the annual salaries they were receiving as of the effective date of the enactment of this section in 2006, and thereafter, notwithstanding any other provision of this code to the contrary, the annual salary of each named appointive state officer shall be as follows:
Commissioner, State Tax Division, $92,500; Commissioner, Insurance Commission, $92,500; Director, ~~Lottery Commission, $92,500~~ Gaming and Racing Control Agency, $92,500; Director, Division of Homeland Security and Emergency Management, $65,000; and Adjutant General, $92,500.
(d) No increase in the salary of any appointive state officer pursuant to this section shall be paid until and unless the appointive state officer has first filed with the State Auditor and the Legislative Auditor a sworn statement, on a form to be prescribed by the Attorney General, certifying that his or her spending unit is in compliance with any general law providing for a salary increase for his or her employees. The Attorney General shall prepare and distribute the form to the affected spending units.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 13. TAXATION AND FINANCE.
§8-13-8. License tax on horse racing and dog racing.
(a) Every municipality within the corporate limits of which a horse ~~racetrack~~ or dog racetrack is located in whole or in part shall have plenary power and authority to impose upon the operator of the track a daily license tax for the privilege of conducting horse ~~racing~~ or dog racing within the corporate limits of the municipality.
(b) ~~Such~~ The daily license tax ~~shall~~ may not exceed the amount of the daily license tax due from ~~such~~ the operator to the state under the provisions of ~~article twenty-three, chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code.
(c) The daily license tax hereby authorized ~~shall~~ is not be applicable to any local, county or state fair, horse show or agricultural or livestock exposition at which horse racing or dog racing is conducted for not more than six days.
(d) A municipal license tax on horse ~~racing~~ or dog racing may be imposed under the provisions of this section but not under the provisions of section four of this article.
CHAPTER 11. TAXATION.
ARTICLE 9. CRIMES AND PENALTIES.
§11-9-2. Application of this article.
(a) The provisions of this article apply to the following taxes imposed by this chapter:
(1) Inheritance and transfer taxes and estate taxes imposed by article eleven of this chapter;
(2) Business registration tax imposed by article twelve of this chapter;
(3) Minimum severance tax on coal imposed by article twelve-b of this chapter;
(4) Corporate license tax imposed by article twelve-c of this chapter;
(5) Business and occupation tax imposed by article thirteen of this chapter;
(6) Severance and business privilege taxes imposed by article thirteen-a of this chapter;
(7) Additional severance taxes imposed by article thirteen-v of this chapter;
(8) Telecommunications tax imposed by article thirteen-b of this chapter;
(9) Gasoline and special fuels excise tax imposed by article fourteen of this chapter;
(10) Motor fuels excise tax imposed by article fourteen-c of this chapter;
(11) Motor carrier road tax imposed by article fourteen-a of this chapter;
(12) Interstate fuel tax agreement authorized by article fourteen-b of this chapter;
(13) Consumers sales and service tax imposed by article fifteen of this chapter;
(14) Use tax imposed by article fifteen-a of this chapter;
(15) Tobacco products excise taxes imposed by article seventeen of this chapter;
(16) Soft drinks tax imposed by article nineteen of this chapter;
(17) Personal income tax imposed by article twenty-one of this chapter;
(18) Business franchise tax imposed by article twenty-three of this chapter;
(19) Corporation net income tax imposed by article twenty-four of this chapter; and
(20) Health care provider taxes imposed by article twenty-seven of this chapter.
(b) The provisions of this article also apply to the West Virginia tax procedure and administration act in article ten of this chapter and to any other articles of this chapter when application is expressly provided by the Legislature.
(c) The provisions of this article also apply to municipal sales and use taxes imposed pursuant to article thirteen-c, chapter eight of this code. the charitable bingo fee imposed by sections six and six-a, article twenty, chapter forty-seven of this code; the charitable raffle fee imposed by section seven, article twenty-one of said chapter; and the charitable raffle boards and games fees imposed by section three, article twenty-three of said chapter.
(d) ~~Each and every provision~~ The provisions of this article ~~applies~~ apply to the articles of this chapter listed in subsections (a), (b) and (c) of this section, with like effect, as if the provisions of this article were applicable only to the tax and were set forth in extenso in this article.
§11-9-2a. Criminal investigation unit ~~division established~~ continued.
(a) ~~Criminal investigation division.~~ -- A criminal investigation ~~division~~ unit consisting of ~~no more than twelve~~ investigators, ~~of which one investigator shall serve as division director,~~ plus necessary support staff, ~~all of whom are exempt from the classified service,~~ is ~~hereby established~~ in the Compliance Division of the State Tax ~~Division~~ Department for the purpose of assuring compliance with laws and rules pertaining to the taxes, fees or credits administered under article ten of this chapter, ~~including, but not limited to, the provisions of articles twenty, twenty-one and twenty-three, chapter forty-seven of this code, but not including~~ except for income taxes imposed on individuals by article twenty-one of this chapter.
(b) Investigators employed in the criminal investigation unit shall have a background in accounting or law enforcement or related fields. Any investigator designated by the Tax Commissioner shall have all the lawful powers delegated to members of the West Virginia State Police except the power to carry firearms and shall have the authority to enforce the provisions of this article and the criminal provisions of any other article of this code to which this article applies, in any county or municipality of this state. The Tax Commissioner shall establish additional standards as he or she considers applicable or necessary. Any investigator shall, before entering upon the discharge of his or her duties, execute a bond with security in the sum of $3,500, payable to the State of West Virginia, conditioned for the faithful performance of the investigator's duties and the bond shall be approved as to form by the Attorney General and shall be filed with the Secretary of State for preservation in that office. The West Virginia State Police, any county sheriff or deputy sheriff and any municipal police officer upon request by the Tax Commissioner is authorized to assist the Tax Commissioner in enforcing the provisions of this article and any criminal penalty provision of any article of this code to which this article applies.
~~(b)~~ ~~Special audits division.~~ ~~-- A special audits division consisting of no more than eight tax examiners, plus necessary support staff, all of whom are covered by the classified service, is hereby established~~ in the auditing section of the State Tax Division for purposes of assuring compliance with laws and rules pertaining to taxes, fees or credits administered under article ten of this chapter, including, but not limited to, the provisions of articles twenty, twenty-one and twenty-three, chapter forty-seven of this code, but not including income taxes imposed on individuals by article twenty-one of this chapter.
(c) The Legislature ~~hereby~~ finds that the enforcement of the laws and rules pertaining to the taxes, fees or credits administered under article ten of this chapter, as are applicable to persons whose residence or principal place of business is outside of the State of West Virginia, requires greater efforts and investigation than required for resident persons, ~~subject thereto,~~ and does further find that there is a greater rate of noncompliance with ~~said~~ the laws and rules by nonresident persons. Therefore, the criminal investigation ~~division~~ unit ~~and the special audits~~ ~~division created in subsections (a) and (b) of this section are~~ ~~hereby~~ is directed to expend a significant amount of ~~their~~ its efforts to ensure compliance with the laws and rules pertaining to taxes, fees or credits administered under article ten of this chapter in accordance with the authority provided in this section, by persons whose residence or principal place of business is located outside the State of West Virginia.
~~(d)~~ ~~Deposits of certain fees.~~ -- Charitable bingo fees imposed by article twenty, chapter forty-seven of this code; charitable raffle fees imposed by article twenty-one of said chapter; and charitable raffle boards and games fees imposed by article twenty-three of said chapter in an amount not to exceed the amount appropriated by the Legislature in any fiscal year shall be deposited in a special revenue account established in the Office of the Treasurer. The special revenue account shall be used to support compliance expenditures relating to the establishment, operation, maintenance and support of the criminal investigation division established in subsection (a) of this section and the special audits division established in subsection (b) of this section. The expenditures may include, but shall not be limited to, employee compensation, equipment, office supplies and travel expenses. On the last day of each fiscal year, unencumbered funds in the special revenue account in excess of one hundred fifty thousand dollars shall be transferred to the General Revenue Fund.
~~(e)~~ ~~Investigators.~~ ~~-- Investigators employed in the criminal~~ ~~investigation division shall have a background in accounting or law enforcement or related fields pursuant to article twenty-nine, chapter thirty~~ of this code, or its equivalent. Any investigator designated by the Tax Commissioner shall have all the lawful powers delegated to members of the division of public safety except the power to carry firearms and shall have the authority to enforce the provisions of this article and the criminal provisions of any other article of this code to which this article applies, in any county or municipality of this state. The Tax Commissioner shall establish additional standards as he or she considers applicable or necessary. Any employee shall, before entering upon the discharge of his or her duties, execute a bond with security in the sum of $3,500, payable to the State of West Virginia, conditioned for the faithful performance of the employee's duties and the bond shall be approved as to form by the Attorney General and shall be filed with the Secretary of State for preservation in that office. The division of public safety any county sheriff or deputy sheriff and any municipal police officer upon request by the Tax Commissioner is hereby authorized to assist the Tax Commissioner in enforcing the provisions of this article and any criminal penalty provision of any article of this code to which this article applies.
~~(f)~~ (d) ~~Class A license plates.~~ -- Notwithstanding the provisions of article three, chapter seventeen-a of this code, upon application by the Tax Commissioner and payment of fees, the Commissioner of Motor Vehicles shall issue a maximum of ~~twenty~~ twelve Class A license plates to be used on state owned or leased vehicles assigned to investigators employed in the criminal investigation ~~division~~ unit.
~~(g)~~ ~~Reports.~~ -- On July 1 of each year, beginning in the year one thousand nine hundred ninety-four, the Tax Commissioner shall present a written report to the joint committee on government operations on the division's compliance with the provisions of this section, including, but not limited to, activities of the divisions created by this section and disbursement of funding.
(e) Effective July 1, 2009, persons employed by the Tax Commissioner under this article who are engaged in the regulation of charitable bingo games and charitable raffle games, and the administration of the wholesale fee on charitable raffleboards and games, are transferred to the Gaming Control Director as created by article twenty-two, chapter twenty-nine.
ARTICLE 12. BUSINESS REGISTRATION TAX.
§11-12-2. Definitions.
(a) General rule. -- Terms used in this article shall have the meaning ascribed to them in section four, article ten of this chapter, unless the context in which the term is used in this article clearly requires a different meaning, or the term is defined in subsection (b) of this section.
(b) Terms defined. -- For purposes of this article, the term:
(1) "Agriculture and farming" ~~shall mean~~ ~~and include~~ means the production of food, fiber, or woodland products (but not timbering activity) by means of cultivation or tillage of the soil, or by the conduct of animal, livestock, dairy, apiary, equine or poultry husbandry, or by horticulture, or by any other plant or animal production, and all farm practices related (usual or incidental) thereto, including the storage, packing, shipping and marketing thereof, but not including any manufacturing, milling, processing or selling of ~~such~~ the products by person other than the producer thereof.
For the purposes of this article:
(2) "Business activity" ~~shall mean and include~~ means all purposeful revenue-generating activity engaged in or caused to be engaged in with the object of gain or economic benefit, either direct or indirect, and all activities of this state and its political subdivisions which involve the sale of tangible personal property or the rendering of service when ~~such~~ the service activities compete with or may compete with the activities of another person. "Business activity" ~~shall~~ may not include:
(A) Judicial sales directed by law or court order.
(B) Sales for delinquent taxes of real or personal property.
(C) The conduct of charitable bingo by any person licensed under ~~article twenty, chapter forty-seven~~ article twenty-two-d, chapter twenty-nine of this code.
(D) The conduct of a charitable raffle by any person.
(E) The conduct of a horse or dog race meeting by any racing association licensed under ~~article twenty-three, chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code.
(F) The operation or maintenance of the pari-mutuel system of wagering during the conduct of a licensed horse or dog race meeting.
(G) The sale of any commodity during the conduct of a licensed horse or dog race meeting.
(H) The services of owners, trainers or jockeys which are essential to the effective conduct of a licensed horse or dog race meeting.
(I) Occasional or casual sales of property or services.
(3) "Business registration certificate" ~~shall mean~~ means a certificate issued by the tax commissioner authorizing a person to conduct business within the state of West Virginia; and when referred to in this article as a certificate of registration or a business franchise registration certificate, it shall mean a business registration certificate.
(4) "Occasional sale" or "casual sale" ~~shall mean~~ means a sale of tangible personal property not held or used by a seller in the course of an activity for which a business registration certificate is required, including the sale or exchange of all or substantially all the assets of any business and the reorganization or liquidation of any business: Provided, That ~~such~~ the sale or exchange is not one of a series of sales or exchanges sufficient in number, scope and character to constitute a business activity requiring the holding of a business registration certificate.
(5) "Person" or "company" ~~shall mean and include~~ means any individual, firm, copartnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, club, society, or other group or combination acting as a unit, or body politic or political subdivision (whether public or private, or quasi-public) and in the plural as well as the singular and when used in connection with the penalties imposed by section nine of this article, shall mean and include the officers, directors, trustees, or members of any firm, copartnership, joint venture, association, corporation, trust, business trust, syndicate or any other groups or combinations acting as a unit.
(6) "Registration year" ~~shall mean~~ means a period of twelve calendar months beginning July 1 and ending the following June 30.
(7) "Registrant" ~~shall mean~~ means any person who has been issued a business registration certificate under this article for the current registration year.
(8) "Tax commissioner" ~~shall mean~~ means the tax commissioner or his agent.
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-7. Persons and other organizations exempt from tax.
The following organizations and persons are exempt from the tax imposed by this article to the extent provided in this section:
(a) Natural persons doing business in this state that are not doing business in the form of a partnership, as defined in section three of this article, or in the form of a corporation, as defined in section three of this article. Natural persons include persons doing business as sole proprietors, sole practitioners and other self-employed persons;
(b) Corporations and organizations which by reason of their purposes or activities are exempt from federal income tax: Provided, That this exemption does not apply to that portion of their capital, as defined in section three of this article, which is used, directly or indirectly, in the generation of unrelated business income, as defined in the Internal Revenue Code, of any corporation or organization if the unrelated business income is subject to federal income tax;
(c) Insurance companies which pay this state a tax upon premiums and insurance companies that pay the surcharge imposed by subdivision (1) or (3), subsection (f), section three, article two-c, chapter twenty-three of this code;
(d) Production credit associations organized under the provisions of the federal Farm Credit Act of 1933: Provided, That this exemption does not apply to corporations or associations organized under the provisions of article four, chapter nineteen of this code;
(e) Any trust established pursuant to section one hundred eighty-six, chapter seven, title twenty-nine of the code of the laws of the United States (enacted as section three hundred two (c) of the Labor Management Relations Act, 1947), as amended, prior to January 1, 1985;
(f) Any credit union organized under the provisions of chapter thirty-one or any other chapter of this code: Provided, That this exemption does not apply to corporations or cooperative associations organized under the provisions of article four, chapter nineteen of this code;
(g) Any corporation organized under this code which is a political subdivision of the State of West Virginia, or is an instrumentality of a political subdivision of this state, and was created pursuant to this code;
(h) Any corporation or partnership engaged in the activity of agriculture and farming, as defined in subdivision (8), subsection (b), section three of this article: Provided, That if a corporation or partnership is not exclusively engaged in that activity, its tax base under this article is apportioned, in accordance with regulations promulgated by the Tax Commissioner, among its several activities and only that portion attributable to the activity of agriculture and farming is exempt from tax under this article;
(i) Any corporation or partnership licensed under ~~article twenty-three, chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code to conduct horse or dog racing meetings or a pari-mutuel system of wagering: Provided, That if the corporation or partnership is not exclusively engaged in this activity, its tax base under this article is apportioned, in accordance with regulations promulgated by the Tax Commissioner, among its several activities and only that portion attributable to the activity of conducting a horse or dog racing meeting or a pari-mutuel system of wagering is exempt from tax under this article;
(j) For those tax years beginning after the June 30, 1998, any corporation or partnership operating as a hunting club: Provided, That the corporation or partnership distributes no income or dividends to its owners or stockholders. For the purposes of this subsection, a hunting club is a group of persons owning land which is used principally for hunting purposes by the members of the club and guests, and where any charges made for hunting are principally for the purpose of defraying the costs of operating and maintaining the club and club properties or establishing a reasonable reserve to meet the operating and maintenance costs of the club. The Tax Commissioner shall, by legislative rule promulgated in accordance with article three, chapter twenty-nine of this code, further prescribe the definition of a hunting club and the manner and method in which this credit may be claimed; and
(k) For tax years beginning after December 31, 2002, any person or other organization engaged in the activity of providing venture capital to West Virginia businesses: Provided, That if the person or organization is not exclusively engaged in that activity, only that portion of its tax base under this article that is attributable to the providing of venture capital to West Virginia businesses is exempt from tax under this article and its tax liability under this article is determined by multiplying its precredit tax liability by a fraction equal to one minus a fraction, the numerator of which is its gross receipts attributable to its venture capital activities in this state and the denominator of which is its total gross receipts from all of its business activities in this state. For purposes of this exemption, a "person or organization engaged in the activity of providing venture capital to West Virginia business" means a certified West Virginia capital company as defined in section four, article one, chapter five-e of this code.
CHAPTER 11B. DEPARTMENT OF REVENUE.
ARTICLE 1. DEPARTMENT OF REVENUE.

§11B-1-2. Location of offices; agencies, boards, commissions, divisions and offices comprising the department of finance and revenue.

(a) The cabinet secretary of the department shall maintain his or her principal office at the seat of government and shall keep there the secretary's public records, books and papers. Agencies, boards, commissions, divisions and other offices of the department may maintain offices at the seat of government or elsewhere depending on factors not limited to available capitol space, the mission of the agency, board, commission, division or office, and convenience to the public.
~~(a)~~ (b) There shall be in the Department of Revenue the following agencies, boards, commissions, divisions and offices, including all of the allied, advisory, affiliated or related entities which are incorporated in and shall be administered as part of the Department of Revenue:
(1) The Alcohol Beverage Control Commissioner provided for in article sixteen, chapter eleven of this code and article one, chapter sixty of this code;
(2) The Division of Banking provided ~~for~~ in article two, chapter thirty-one-a of this code;
(3) The board of banking and financial institutions provided ~~for~~ in article three, chapter thirty-one-a of this code;
(4) The state budget office ~~heretofore known as the budget section of the Finance Division, Department of Administration, previously provided for in article two, chapter five-a of this code and now~~ provided ~~for~~ in article two of this chapter;
(5) The agency of Insurance Commissioner provided ~~for~~ in article two, chapter thirty-three of this code;
(6) The lending and credit rate board provided ~~for~~ in chapter forty-seven-a of this code;
(7) ~~The Lottery Commission and the position of lottery director~~ The Gaming and Racing Control Commission and the Gaming and Racing Control Agency provided ~~for~~ in article twenty-two, chapter twenty-nine of this code;
(8) The Municipal Bond Commission provided ~~for~~ in article three, chapter thirteen of this code;
(9) The office of tax appeals provided ~~for~~ in article ten-a, chapter eleven of this code; and
~~(10) The state athletic commission provided for in article five-a, chapter twenty-nine of this code;~~
~~(11)~~ (10) The Tax Division provided ~~for~~ in article one, chapter eleven of this code. ~~and~~
~~(12) The West Virginia Racing Commission provided for in article twenty-three, chapter nineteen of this code~~
(c) The department shall also include any other agency, board, commission, division, office or unit subsequently incorporated in the department by the Legislature.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
§29-22-1. Short title.
This article shall be known and may be cited as the ~~"State Lottery~~ "Gaming Control Act."
§29-22-2. Legislative purpose, continuation of judicial rulings.
(a) ~~The Legislature finds and declares that the purpose of~~ This article is to establish and implement a state-operated lottery under the supervision of the state Lottery Commission and the director of the state lottery office who shall be appointed by the Governor and hold broad authority to administer the system in a manner which will provide the state with a highly efficient operation The purpose of this article is to establish that the Gaming and Racing Control Commission and the Director of the Gaming and Racing Control Agency are responsible for administering and regulating, the sport of boxing under the provisions of article twenty-two-g, chapter twenty-nine of this code, and all legal gaming activities, including, but not limited to, horse and dog racing activities under the provisions of article twenty-two-h, chapter twenty-nine of this code, state-owned lotteries under the provisions of this article; racetrack video lottery under the provisions of article twenty-two-a of this chapter, limited video lottery games under the provisions of article twenty-two-b of this chapter, lottery racetrack table games under the provisions of article twenty-two-c of this chapter, one limited gaming facility under the provisions of article twenty-five, chapter twenty-nine of this chapter and charitable gaming under the provisions of articles twenty-two-d, twenty-two-e and twenty-two-f, chapter twenty-nine of this code.
(b) Unless otherwise superseded in this code, judicial rulings made in regards to article twenty-three, chapter nineteen, article five-a, chapter twenty-nine, article twenty-two, chapter twenty- nine, article twenty-two-a, chapter twenty-nine, article twenty- two-b, chapter twenty-nine, article twenty-two-c, chapter twenty- nine, article twenty-five, chapter twenty-nine, article twenty, chapter forty-seven, article twenty-one, chapter forty-seven, article twenty-three, chapter forty-seven of this code shall be held as valid precedent for the Gaming and Racing Control Commission and the Gaming and Racing Control Agency.
§29-22-3. Definitions.
As used in this article, and unless the context requires otherwise:
(a) "Agency" means the Gaming and Racing Control Agency created in section six of this article.
(b) "Director" means the individual appointed by the Governor to provide management and administration necessary to direct the ~~state lottery office~~ Gaming and Racing Control Agency.
(c) "Gaming and Racing Control Commission" or "commission" means the Gaming and Racing Control Commission created by this article.
~~(c)~~ (d) "Lottery" means the public gaming systems or games established and operated by the ~~state lottery office~~ Gaming and Racing Control Agency.
~~(d)~~ (e) "Lottery tickets" or "tickets" means tickets or other tangible evidence of participation used in lottery games or gaming systems.
~~(e) "State lottery~~ ~~Gaming and Racing Control Commission" or "commission" means the State lottery~~ ~~Gaming and Racing Control Commission~~ ~~created by this article.~~
§29-22-4. Gaming and Racing Control Commission created; composition; qualifications; appointment; terms of office; chairman's removal; vacancies; compensation and expenses; quorum, oath and bond.

(a) ~~There is hereby created a~~ The State Lottery Commission is abolished. Effective July 1, 2009, the Gaming and Racing Control Commission is created and ~~which~~ shall consist of ~~seven~~ nine members, all residents and citizens of the state and none of whom have a vested interest in anything regulated by the commission:
(1) One member who shall be a lawyer;
(2) One member who shall be a certified public accountant;
(3) One member who shall be a computer expert;
(4) One member who shall have not less than five years experience in law enforcement; ~~and~~
(5) One member who shall have not less than five years experience in horse racing;
(6) One member who shall have not less than five years experience in greyhound racing;
(7) One member who shall have not less than five years experience in representing labor interests;
(8) One member who shall be qualified by experience and training in the field of marketing; and
(9) ~~The two~~ One member ~~remaining members shall be~~ ~~representative~~ representing of the public at large.
(b) The Governor shall appoint the commission members on July 1, 2009.
~~The commission shall carry on a continuous study and investigation of the lottery throughout the state and advise and assist the director of the state lottery.~~
(c) The commission members shall be appointed by the Governor, by and with the advice and consent of the Senate. ~~no later than the first day of July, one thousand nine hundred eighty-five~~
(d) The Governor shall stagger the terms as follows: ~~terms of members first appointed expire as designated by the Governor at the time of appointment:~~ ~~One~~ Two at the end of one year; two at the end of two years; ~~one~~ two at the end of three years; two at the end of four years; and one at the end of five years.
(e) ~~Upon the effective date of this section, as vacancies occur, appointments to fill vacancies shall be made so that at least two~~ Three members ~~are~~ shall be appointed from each congressional district. ~~existing as of the first day of January, one thousand nine hundred ninety-three~~
(f) No more than ~~four~~ five members of ~~such~~ the commission shall belong to the same political party.
(g) ~~Members serve overlapping terms of five years and are eligible for successive appointments to the commission.~~ After the initial appointments by the Governor, each member shall be appointed for a term of five years and may not serve more than three consecutive terms. Any member who has served three consecutive full terms may not be reappointed for at least one year after completion of his or her third full term. A member may continue to serve until his or her successor has been appointed and qualified.
(h) On July 1 of each year, the commission shall select a chairman from its membership.
(i) The Governor may remove any commission member for cause, notwithstanding the provisions of section four, article six, chapter six of this code. Vacancies shall be filled in the same manner as the original appointment but only for the remainder of the term. No person convicted of a felony or crime involving moral turpitude shall be eligible for appointment nor appointed as a commissioner.
~~(b)~~ (j) The ~~board~~ Gaming and Racing Control Agency shall pay each member the same compensation as is paid to members of the Legislature for their interim duties ~~as recommended by the Citizens Legislative Compensation Commission and authorized by law~~ for each day or portion thereof engaged in the discharge of official duties and shall reimburse each member for actual and necessary expenses incurred in the discharge of official duties: Provided, That the per mile rate to be reimbursed shall be the same rate as authorized for members of the Legislature. All ~~such~~ payments shall be made from the ~~State Lottery Fund~~ nonappropriated special account created in section eight-a of this article.
~~(c)~~ (k) At least one meeting per month shall be held by the commission. Additional meetings may be held at the call of the chairman, director or majority of the commission members.
~~(d)~~ (l) A majority of the members constitutes a quorum for the transaction of business, and all actions require a majority vote of the members present.
~~(e)~~ (m) Before entering upon the discharge of the duties as commissioner, each commissioner shall take and subscribe to the oath of office prescribed in section five, article IV of the Constitution of West Virginia and shall enter into a bond in the penal sum of $100,000 with a corporate surety authorized to engage in business in this state, conditioned upon the faithful discharge and performance of the duties of the office. The executed oath and bond shall be filed in the office of the Secretary of State.
(n) The commission shall carry on a continuous study and investigation of ~~the lottery~~ gaming, lottery, charitable bingo, charitable raffle, charitable raffle boards, horse and dog racing and boxing activities throughout the state and advise and assist the director. The commission shall make recommendations to the Governor and the Legislature on the condition of the gaming, horse and dog racing and boxing industries and make any recommendations that it would enhance and improve the industries.
(o) Members of the commission or members of their immediate families may not have anything to do with the industries or entities regulated by the commission for the previous five years.
§29-22-5. Powers and Duties of the Gaming and Racing Control Commission; emergency rules.

(a) The commission shall: ~~have the authority to~~

(1) Promulgate rules in accordance with article three, chapter twenty-nine-a of this code; ~~Provided,~~ That those rules promulgated by the commission that are necessary to begin the lottery games selected shall be exempted from the provisions of chapter twenty- nine-a of this code in order that the selected games may commence as soon as possible
(2) Establish rules for conducting lottery games, a manner of selecting the winning tickets and manner of payment of prizes to the holders of winning tickets;
(3) Select the type and number of public gaming systems or games, to be played in accordance with the provisions of this article;
(4) Contract, if deemed desirable, with the educational broadcasting authority to provide services through its microwave interconnection system to make available to public broadcasting stations servicing this state, and, at no charge, for rebroadcast to commercial broadcasting stations within this state, any public gaming system or games drawing;
(5) Enter into interstate and international lottery agreements with other states in foreign countries or any combination of one or more state and one or more foreign countries;
(6) Adopt an official seal;
(7) Maintain a principal office, and, if necessary, regional suboffices at locations properly designated or provided;
(8) Prescribe a schedule of fees and charges;
(9) Sue and be sued;
(10) Lease, rent, acquire, purchase, own, hold, construct, equip, maintain, operate, sell, encumber and assign rights of any property, real or personal, consistent with the objectives of the commission as set forth in this article;
~~(11) Designate one of the deputy directors to serve as acting director during the absence of the director;~~
~~(12)~~ (11) Hold hearings on any matter of concern to the commission relating to the lottery, racing, charitable gaming, or boxing, subpoena witnesses, administer oaths, take testimony, require the production of evidence and documentary evidence and designate hearing examiners and employees to so act; and
~~(13)~~ (12) To make and enter into all agreements and do all acts necessary or incidental to the performance of its duties and the exercise of its powers under this article.
(b) Departments, boards, commissions or other agencies of this state shall provide assistance to the ~~state lottery office~~ Gaming and Racing Control Agency upon the request of the director.
(c) Upon the request of the deputy director for the security and licensing division in conjunction with the director, ~~the Attorney General, department of public safety and~~ all ~~other~~ law-enforcement agencies shall furnish to the director and the deputy director ~~such~~ information as may tend to assure the security, honesty, fairness and integrity in the operation and administration of the lottery as they may have in their possession, including, but not limited to, manual or computerized information and data. The director is to designate such employees of the security and licensing division as may be necessary to act as enforcement agents. ~~Such~~ The agents are authorized to investigate complaints made to the commission or the state lottery office concerning possible violation of the provisions of this article and determine whether to recommend criminal prosecution. If it is determined that action is necessary, an agent, after approval of the director, is to make such recommendation to the prosecuting attorney in the county wherein the violation occurred or to any appropriate law- enforcement agency.
(c) The commission and the director shall have full jurisdiction over and shall supervise all races, all horse and dog race meetings, and all persons involved in the conducting of race meetings under the provisions article twenty-two-h, of this chapter.
(d) The commission and the director shall have authority over charitable gaming under the provisions of articles twenty-two-d, twenty-two-e and twenty-two-f, of this chapter.
(e) The commission and the director shall authority over the sport of boxing as stated in article twenty-nine-g of this chapter.
(f) At the discretion of the commission, this report may be submitted in an omnibus report that includes other divisions and aspects of the Gaming and Racing Control Agency.
(g) Notwithstanding any in this code to the contrary, the commission may adopt by emergency rule annual licensing periods for all licenses that fall that are regulated by the commission that it finds to be necessary to increase the efficiency and accuracy of its licensing process.
(h) Notwithstanding any provision in this code to the contrary, the commission is authorized to promulgate emergency rules and legislative rules, on September 1, 2009, to incorporate all revisions of the Gaming Control Act. The commission shall file submit its final rule to the Legislative Rulemaking and Review Committee before November 1, 2009.
§29-22-6. Director; appointment; qualifications; oath and bond; salary.

(a) There is ~~hereby~~ created the position of the ~~lottery~~ Director of the Gaming and Racing Control Agency whose duties include the management and administration of the ~~state lottery office~~ Gaming and Racing Control Agency. The director shall be qualified by training and experience to direct the operations and regulatory oversight of the ~~lottery~~ agency, and shall be appointed ~~within ninety days of the effective date of this article,~~ by the Governor and shall serve at the will and pleasure of the Governor. No person ~~shall~~ may be appointed as director who has been convicted of a felony or crime involving moral turpitude.
(b) On July 1, 2009, the person appointed to be the Director of the State Lottery Office shall continue in office as the Director of the Gaming and Racing Control Agency until a successor is appointed and qualified.
~~(b)~~ (c) The director serves on a full-time basis and may not be engaged in any other profession or occupation.
~~(c)~~ (d) The director:
(1) Shall have a good reputation, particularly as a person of honesty and integrity, and shall favorably pass a thorough background investigation prior to appointment;
(2) ~~The director~~ ~~shall~~ May not hold any other political office in the government of the state either by election or appointment while serving as director;
(3) ~~The director~~ Shall be a citizen of the United States and must become a resident of the state within ninety days of appointment; and
~~(4) The director Shall receive an annual salary as provided for by the Governor; and~~
~~(5)~~ (4) The director and his or her executive secretary are ineligible for civil service coverage as provided in section four, article six, chapter twenty-nine of this code.
~~(d)~~ (e) Before entering upon the discharge of the duties as director, the director shall take and subscribe to the oath of office prescribed in section 5, article IV of the Constitution of West Virginia and shall enter into a bond in the penal sum of $100,000 with a corporate surety authorized to engage in business in this state, conditioned upon the faithful discharge and performance of the duties of the office. The executed oath and bond shall be filed in the office of the Secretary of State.
§29-22-7. Divisions of the Gaming and Racing Control Agency.

(a) There shall be established within the ~~state lottery office~~ Gaming and Racing Control Agency: ~~an security and licensing~~ a racing division, ~~division, a personnel, data processing, accounting and administration division and a marketing, education and information division~~ a lottery division and other divisions as the commission may authorize.
(b) Each division shall be ~~under the supervision of~~ supervised by a deputy director who shall administer and coordinate the operation of authorized activities in the respective division. ~~Each deputy director shall have had three years management experience in areas pertinent to his prospective responsibilities and an additional three years of experience in the same field.~~

§29-22-8. Director; powers and duties; deputy directors; hiring of staff; civil service coverage.

(a) The director ~~shall have the authority to~~ may:

(1) Appoint, ~~with the approval of the commission,~~ a deputy director for each of the divisions established in this article and other divisions that the commission may authorize. The deputy directors shall serve at the will and pleasure of the director at an annual salary established by the director and approved by the commission. Deputy directors ~~shall~~ are not be eligible for civil service coverage as provided in section four, article six, chapter twenty-nine of this code;
(2) Appoint an assistant director, a managing general counsel, a chief financial officer, a person to oversee licensing and a person to oversee enforcement. All persons hired under this subdivision shall serve at the will and pleasure of the director at an annual salary established by the director and approved by the commission. The persons hired under this subdivision are not eligible for civil service coverage as provided in section four, article six, chapter twenty-nine of this code;
~~(2)~~ (3) ~~The director shall~~ Hire ~~pursuant to the approval of the commission, such~~ professional, clerical, technical and administrative personnel as may be necessary to carry out the provisions of ~~this article~~ articles twenty-two, twenty-two-a, twenty two-b, twenty-two-c, twenty-two-d, twenty-two-e twenty-two- f, twenty-two-g, twenty-two-h and twenty five of this chapter.
(A) No person ~~shall~~ may be employed by the ~~lottery~~ agency who has been convicted of a felony or other crime involving moral turpitude. Each person employed by the ~~commission~~ agency shall execute an authorization to allow an investigation of that person's background; and
(B) Notwithstanding any provisions of articles twenty-two, twenty-two-a, twenty two-b, twenty-two-c, articles twenty-two-d, twenty-two-e twenty-two-f, twenty-two-g, twenty-two-h and twenty five of this chapter, to the contrary, the director may assign all employees of the agency based upon the needs of the agency and the availability of funds; and
~~(3)~~ (4) Designate the number and types of locations at which lottery tickets may be sold or authorized games may be played.
(b) ~~Effective the first day of July, one thousand nine hundred eighty-six,~~ All employees of the ~~commission~~ agency, except as otherwise provided ~~herein~~ articles twenty-two, twenty-two-a, twenty two-b, twenty-two-c, articles twenty-two-d, twenty-two-e twenty- two-f, twenty-two-g, twenty-two-h and twenty five of this chapter, of this code to the contrary, the director may assign all employees of the agency based upon the needs of the agency and the availability of funds; shall be in the classified service under the provisions of article six, chapter twenty-nine of this code.
~~(c) The director shall, pursuant to the approval of the commission, prepare and submit the annual proposed appropriations for the commission to the Governor.~~
§29-22-8a. Special account for administration of the Gaming and Racing Control Agency.
(a) There is created in the state treasury a nonappropriated special account to be named the "Gaming and Racing Control Agency - Administrative Account." The Director shall transfer administrative allowances from the following sources into the account:
(1) The administrative allowance in subsection (d), section eighteen, article twenty-two, chapter twenty-nine of this code;
(2) The administrative allowance in subsection (b), section ten, article twenty-two-a, chapter twenty-nine of this code;
(3) The administrative allowance in subdivision (1), subsection (a), section fourteen hundred eight, article twenty- two-b, chapter twenty-nine of this code;
(4) The administrative allowance in subsection (d), section twenty-seven, article twenty-two-c, chapter twenty-nine of this code;
(5) The administrative allowance in articles twenty-two-d, twenty-two-e, twenty-two-f and twenty-two-g of this chapter code;
(6) The administrative allowance in article twenty-two-h, of this chapter of this code; and
(7)The administrative allowance in subsection (b), section twenty-two, article twenty-five, chapter twenty-nine of this code.
(b) Not withstanding any requirement or limitation within any of the sections of this code stated in subdivisions one through seven, subdivision (a) of this section, the director shall expend money from collections from the account created by subsection (a) of this section for the expenses of the State Gaming and Racing Control Agency.
(c) Administrative allowances contributed by section eighteen, article twenty-two, section ten, article twenty-two-a, and section fourteen hundred eight, article twenty-two-b of this chapter may be transferred to the Revenue Center Construction Fund created by subsection (l), section eighteen, article twenty-two of this chapter. The contributions to the Revenue Center Construction Fund shall be in accordance with section eighteen, article twenty-two, section ten, article twenty-two-a, and section fourteen hundred eight, article twenty-two-b of this chapter. Administrative allowances from any other source listed in subsection (a) of this section may not be transferred into the Revenue Center Construction Fund.
(d) At the close of each fiscal year, any unencumbered and undesignated balance in the account shall be returned as surplus to the various funds from which the account received transfers.

§29-22-13. Prohibited acts; conflict of interest; prohibited gifts and gratuities.

(1) The commissioners, the director, the deputy directors and the employees of the ~~lottery~~ Gaming and Racing Control Agency may not, directly or indirectly, individually, or as a member of a partnership or as a shareholder of a corporation have an interest in ~~dealing in a lottery~~ anything regulated by the Gaming Control
Commission or the Gaming and Racing Control Agency.
(2) A member of the commission, the director, and an employee of the ~~lottery~~ Gaming and Racing Control Agency or a member of their immediate families may not ask for, offer to accept, or receive any gift, gratuity or other thing of value from any person, corporation, association or firm contracting or seeking to contract with the state to supply ~~gaming~~ equipment or materials for use in ~~the operation of a lottery~~ anything regulated by the Gaming Control
Commission or the Gaming and Racing Control Agency, or from an applicant for a any license or permit ~~to sell lottery tickets in the lottery~~ issued by the Gaming and Racing Control Agency or from a any licensee or permit holder under the Gaming and Racing Control Agency's regulation.
(3) A person, corporation, association or firm contracting or seeking to contract with the state to supply ~~gaming~~ equipment or materials for use in anything regulated by the Gaming and Racing Control Commission or the Gaming and Racing Control Agency, ~~the operation of a lottery~~, an applicant for a any license or permit ~~to sell tickets in the lottery~~ issued by the Gaming and Racing Control Agency or a any licensee or permit holder regulated by the Gaming and Racing Control Agency may not offer a member of the commission, an employee of the ~~lottery~~ Gaming and Racing Control Agency, or a member of their immediate families any gift, gratuity or other thing of value.
(4) For the purposes of this section, "thing of value" shall have the same meaning as it does in section three, article one, chapter six-b of this code.
§29-22-19. Post audit of accounts and transactions of office.
Before July 1, 2001, and at least every two fiscal years thereafter, the Legislative Auditor shall conduct a post audit of all accounts and transactions of the ~~state lottery office~~ Gaming and Racing Control Agency. The cost of the audit shall be paid out of the ~~State lottery~~ Gaming Fund moneys designated for payment of operating expenses. The commission shall have an annual audit performed by an independent certified public accountant, and the audits may be accepted by the Legislative Auditor in lieu of performance of its post audit.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-3. Definitions.
As used in this article:
(a) "Applicant" means any person applying for any video lottery license or permit.
(b) "Associated equipment" means any hardware located on a licensed racetrack's premises which is connected to the video lottery system for the purpose of performing communication, validation or other functions, but not including the video lottery terminals or the communication facilities of a regulated public utility.
(c) "Background investigation" means a security, criminal and credit investigation of a person, as defined in this section, who has applied for a video lottery license or permit, or who has been granted a video lottery license or permit.
(d) "Central computer," "central control computer" or "central site system" means any central site computer provided to and controlled by the commission to which video lottery terminals communicate for purposes of information retrieval and terminal activation and to disable programs.
(e) "Commission" or "State Lottery Commission" means the ~~West Virginia Lottery Commission~~ Gaming and Racing Control Commission created by article twenty-two of this chapter.
(f) "Control" means the authority to direct the management and policies of an applicant or a license or permit holder.
(g) "Costs" means the expenses incurred by the commission in the testing and examination of video lottery terminals and the performance of background investigations and other related activities which are charged to and collected from applicants or license or permit holders.
(h) "Director" means the individual appointed by the Governor to provide management and administration necessary to direct the ~~state lottery office~~ Gaming and Racing Control Agency.
(i) "Disable" or "terminal disable" means the process of executing a shutdown command from the central control computer which causes video lottery terminals to cease functioning.
(j) "Display" means the visual presentation of video lottery game features on a video lottery terminal in the form of video images, actual symbols or both.
(k) "EPROM" and "erasable programmable read-only memory chips" means the electronic storage medium on which the operation software for all games playable on a video lottery terminal resides and which can also be in the form of CD-ROM, flash RAM or other new technology medium that the commission may from time to time approve for use in video lottery terminals. All electronic storage media are considered to be the property of the State of West Virginia.
(l) "Floor attendant" means a person, employed by a licensed racetrack, who holds a permit issued by the commission and who corrects paper jams and bill jams in video lottery terminals and also provides courtesy services for video lottery players.
(m) "Gross terminal income" means the total amount of cash, vouchers or tokens inserted into the video lottery terminals operated by a licensee, minus the total value of coins and tokens won by a player and game credits which are cleared from the video lottery terminals in exchange for winning redemption tickets.
(n) "License" or "video lottery license" means authorization granted by the commission to a licensed racetrack ~~which is licensed by the West Virginia Racing Commission~~ to conduct thoroughbred or greyhound racing meetings pursuant to article twenty-two-h, chapter twenty-nine of this code permitting the racetrack to operate video lottery terminals authorized by the commission.
(o) "Lottery" means the public gaming systems or games established and operated by the ~~state Lottery~~ Gaming and Racing Control Commission.
(p) "Lottery office" means the division of lottery within Gaming and Racing Control Agency.
~~(p)~~ (q) "Manufacturer" means any person holding a permit granted by the commission to engage in the business of designing, building, constructing, assembling or manufacturing video lottery terminals, the electronic computer components of the video lottery terminals, the random number generator of the video lottery terminals, or the cabinet in which it is housed, and whose product is intended for sale, lease or other assignment to a licensed racetrack in West Virginia, and who contracts directly with the licensee for the sale, lease or other assignment to a licensed racetrack in West Virginia.
~~(q)~~ (r) "Net terminal income" means gross terminal income minus an amount deducted by the commission to reimburse the commission for its actual costs of administering racetrack video lottery at the licensed racetrack. No deduction for any or all costs and expenses of a licensee related to the operation of video lottery games shall be deducted from gross terminal income.
~~(r)~~ (s) "Noncash prize" means merchandise which a video lottery player may be given the option to receive in lieu of cash in exchange for a winning redemption ticket and which shall be assigned a redemption value equal to the actual cost of the merchandise to the licensed racetrack.
~~(s)~~ (t) "Own" means any beneficial or proprietary interest in any property or business of an applicant or licensed racetrack.
~~(t)~~ (u) "Pari-mutuel racing facility," "licensed racetrack," "racetrack" or "track" means a facility where horse or dog race meetings are held and the pari-mutuel system of wagering is authorized pursuant to the provisions of article ~~twenty-three~~ twenty-two-h, chapter ~~nineteen~~ twenty-nine of this code: Provided, That, for the purposes of this article, "pari-mutuel racing facility," "licensed racetrack," "racetrack" or "track" includes only a facility which was licensed prior to January 1, 1994, to hold horse or dog race meetings, and which conducts not less than two hundred twenty live racing dates for each horse or dog race meeting or ~~such~~ other number of live racing dates as may be approved by the ~~Racing~~ commission ~~in accordance with the provisions of section twelve-b, article twenty-three, chapter nineteen of this code.~~
~~(u)~~ (v) "Permit" means authorization granted by the commission to a person to function as either a video lottery manufacturer, service technician or validation manager.
~~(v)~~ (w) "Person" means any natural person, corporation, association, partnership, limited partnership, or other entity, regardless of its form, structure or nature.
~~(w)~~ (x) "Player" means a person who plays a video lottery game on a video lottery terminal at a racetrack licensed by the commission to conduct video lottery games.
(y) "Racing commission" and "West Virginia Racing Commission" mean the Gaming and Racing Control Commission.
~~(x)~~ (z) "Service technician" means a person, employed by a licensed racetrack, who holds a permit issued by the commission and who performs service, maintenance and repair on licensed video lottery terminals in this state.
~~(y)~~ (aa) "Video lottery game" means a commission approved, owned and controlled electronically simulated game of chance which is displayed on a video lottery terminal and which:
(1) Is connected to the commission's central control computer by an on-line or dial-up communication system;
(2) Is initiated by a player's insertion of ~~coins, currency~~ cash, vouchers or tokens into a video lottery terminal, which causes game play credits to be displayed on the video lottery terminal and, with respect to which, each game play credit entitles a player to choose one or more symbols or numbers or to cause the video lottery terminal to randomly select symbols or numbers;
(3) Allows the player to win additional game play credits, coins or tokens based upon game rules which establish the random selection of winning combinations of symbols or numbers or both and the number of free play credits, coins or tokens to be awarded for each winning combination of symbols or numbers or both;
(4) Is based upon computer-generated random selection of winning combinations based totally or predominantly on chance;
(5) In the case of a video lottery game which allows the player an option to select replacement symbols or numbers or additional symbols or numbers after the game is initiated and in the course of play, either:
(A) Signals the player, prior to any optional selection by the player of randomly generated replacement symbols or numbers, as to which symbols or numbers should be retained by the player to present the best chance, based upon probabilities, that the player may select a winning combination;
(B) Signals the player, prior to any optional selection by the player of randomly generated additional symbols or numbers, as to whether ~~such~~ the additional selection presents the best chance, based upon probabilities, that the player may select a winning combination; or
(C) Randomly generates additional or replacement symbols and numbers for the player after automatically selecting the symbols and numbers which should be retained to present the best chance, based upon probabilities, for a winning combination, so that in any event, the player is not permitted to benefit from any personal skill, based upon a knowledge of probabilities, before deciding which optional numbers or symbols to choose in the course of video lottery game play;
(6) Allows a player at any time to simultaneously clear all game play credits and print a redemption ticket entitling the player to receive the cash value of the free plays cleared from the video lottery terminal; and
(7) Does not use the following game themes commonly associated with casino gambling: Roulette, dice, or baccarat card games: Provided, That games having a display with symbols which appear to roll on drums to simulate a classic casino slot machine, game themes of other card games and keno may be used.
~~(z)~~ (bb) "Validation manager" means a person who holds a permit issued by the commission and who performs video lottery ticket redemption services.
~~(aa)~~ (cc) "Video lottery" means a lottery which allows a game to be played utilizing an electronic computer and an interactive computer terminal device, equipped with a video screen and keys, a keyboard or other equipment allowing input by an individual player, into which the player inserts coins, currency, vouchers or tokens as consideration in order for play to be available, and through which terminal device the player may receive free games, coins, tokens or credit that can be redeemed for cash, annuitized payments over time, a noncash prize or nothing, as may be determined wholly or predominantly by chance. "Video lottery" does not include a lottery game which merely utilizes an electronic computer and a video screen to operate a lottery game and communicate the results of the game, such as the game "Travel," and which does not utilize an interactive electronic terminal device allowing input by an individual player.
~~(bb)~~ (dd) "Video lottery terminal" means a commission-approved interactive electronic terminal device which is connected with the commission's central computer system, and which is used for the purpose of playing video lottery games authorized by the commission. A video lottery terminal may simulate the play of one or more video lottery games.
~~(cc)~~ (ee) "Wager" means a sum of money or thing of value risked on an uncertain occurrence.
§29-22A-7. License and permit qualifications; individual qualifications; applicant required to furnish information; waiver of liability; oath or affirmation; duty to provide accurate and material information.

(a) No video lottery license or permit may be granted unless the commission has determined that the applicant satisfies all of the following qualifications:
(1) An applicant for a video lottery license must hold a valid racing license granted by the ~~West Virginia racing~~ Gaming and Racing Control Commission under provisions of ~~article twenty-three, chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code.
(2) An applicant must be a person of good character and integrity.
(3) An applicant must be a person whose background, including criminal record, reputation and associations, does not pose a threat to the security and integrity of the lottery or to the public interest of the state. All new applicants for licenses and permits issued by the commission shall 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. 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. A person who has been convicted of any violation of article twenty-two of this chapter or of this article or of any crime related to theft, bribery, gambling or involving moral turpitude is not eligible for any license or permit. The commission shall revoke the license or permit of any person who is convicted of any ~~such~~ crime after a license or permit is granted.
(4) An applicant must be a person who demonstrates the business ability and experience necessary to establish, operate and maintain the business for which a video lottery license or permit application is made.
(5) An applicant must be a person who has secured adequate financing for the business for which a video lottery license or permit application is made. The commission shall determine whether financing is from a source which meets the qualifications of this section and is adequate to support the successful performance of the duties and responsibilities of the licensed racetrack or permit holder. An applicant for a video lottery license shall disclose all financing or refinancing arrangements for the purchase, lease or other acquisition of video lottery terminals and associated equipment in the degree of detail requested by the commission. A licensed racetrack shall request commission approval of any change in financing or lease arrangements at least thirty days before the effective date of the change.
(6) A racetrack applying for a video lottery license or a license renewal must present to the commission evidence of the existence of an agreement, regarding the proceeds from video lottery terminals, between the applicant and the representative of a majority of the horse owners and trainers, the representative of a majority of the pari-mutuel clerks and the representative of a majority of the breeders or the representative of a majority of the kennel owners for the applicable racetrack who hold permits required by section two, article twenty-three, chapter nineteen of this code.
(7) A racetrack applying for a video lottery license or a license renewal must file with the commission a copy of any current or proposed agreement between the applicant and any manufacturer for the sale, lease or other assignment to the racetrack of video lottery terminals, the electronic computer components of the terminals, the random number generator of the terminals, or the cabinet in which it is housed. Once filed with the commission, the agreement is a public document subject to the provisions of article one, chapter twenty-nine-b of this code.
(b) No video lottery license or permit may be granted to an applicant until the commission determines that each person who has control of the applicant meets all applicable qualifications of subsection (a) of this section. 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.
(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.
(c) Applicants must furnish all information, including financial data and documents, certifications, consents, waivers, individual history forms and other materials requested by the commission for purposes of determining qualifications for a license or permit. No video lottery license or permit may be granted to an applicant who fails to provide information and documentation requested by the commission. The burden of proving qualification for any video lottery license or permit is on the applicant.
(d) Each applicant bears all risks of adverse public notice, embarrassment, criticism, damages or financial loss which may result from any disclosure or publication of any material or information obtained by the commission pursuant to action on an application. The applicant shall, as a part of its application, expressly waive any and all claims against the commission, the State of West Virginia and the employees of either for damages as a result of any background investigation, disclosure or publication relating to an application for a video lottery license or permit. (e) All application, registration and disclosure forms and other documents submitted to the commission by or on behalf of the applicant for purposes of determining qualification for a video lottery license or permit shall be sworn to or affirmed before an officer qualified to administer oaths. (f) An applicant who knowingly fails to reveal any fact material to qualification or who knowingly submits false or misleading material information is ineligible for a video lottery license or permit.

§29-22A-10. Accounting and reporting; commission to provide communications protocol data; distribution of net terminal income; remittance through electronic transfer of funds; establishment of accounts and nonpayment penalties; commission control of accounting for net terminal income; settlement of accounts; manual reporting and payment may be required; request for reports; examination of accounts and records.

(a) The commission shall provide to manufacturers, or applicants applying for a manufacturer's permit, the protocol documentation data necessary to enable the respective manufacturer's video lottery terminals to communicate with the commission's central computer for transmitting auditing program information and for activation and disabling of video lottery terminals.
(b) The gross terminal income of a licensed racetrack shall be remitted to the commission through the electronic transfer of funds. Licensed racetracks shall furnish to the commission all information and bank authorizations required to facilitate the timely transfer of moneys to the commission. Licensed racetracks must provide the commission thirty days' advance notice of any proposed account changes in order to assure the uninterrupted electronic transfer of funds. From the gross terminal income remitted by the licensee to the commission, the commission shall deduct an amount sufficient to reimburse the commission for its actual costs and expenses incurred in administering racetrack video lottery at the licensed racetrack, and the resulting amount after the deduction is the net terminal income. The amount deducted for administrative costs and expenses of the commission may not exceed 4% of gross terminal income: Provided, That any amounts deducted by the commission for its actual costs and expenses that exceeds its actual costs and expenses shall be deposited into the State Lottery Fund. For the fiscal years ending June 30 ~~two thousand six, two thousand seven, 2008,~~ 2009, 2010 and 2011, the term "actual costs and expenses" shall include transfers of no more than $20 million in any year to the Revenue Center Construction Fund created by subsection (l), section eighteen, article twenty-two of this chapter for the purpose of constructing a state office building. For all fiscal years beginning on or after July 1, 2001, the commission ~~shall~~ may not receive an amount of gross terminal income in excess of the amount of gross terminal income received during the fiscal year ending June 30, 2001, but four percent of any amount of gross terminal income received in excess of the amount of gross terminal income received during the fiscal year ending June 30, 2001, shall be deposited into the fund established in section eighteen-a, article twenty-two of this chapter.
(c) Net terminal income shall be divided as set out in this subsection. For all fiscal years beginning on or after July 1, 2001, any amount of net terminal income received in excess of the amount of net terminal income received during the fiscal year ending June 30, 2001, shall be divided as set out in section ten-b of this article. The licensed racetrack's share is in lieu of all lottery agent commissions and is considered to cover all costs and expenses required to be expended by the licensed racetrack in connection with video lottery operations. The division shall be made as follows:
(1) The commission shall receive 30% of net terminal income, which shall be paid into the State Lottery Fund as provided in section ten-a of this article;
(2) Until the July 1, 2005, 14% of net terminal income at a licensed racetrack shall be deposited in the special fund established by the licensee, and used for payment of regular purses in addition to other amounts provided ~~for~~ in ~~article twenty-three,~~ ~~chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code; on and after the first July 1, 2005, the rate shall be 7% of net terminal income;
(3) The county where the video lottery terminals are located shall receive 2% of the net terminal income: Provided, That:
(A) Beginning July 1, 1999, and thereafter, any amount in excess of the 2% received during the fiscal year 1999 by a county in which a racetrack is located that has participated in the West Virginia Thoroughbred Development Fund since on or before January 1, 1999, shall be divided as follows:
(i) The county shall receive 50% of the excess amount; and
(ii) The municipalities of the county shall receive 50% of the excess amount, ~~said~~ the 50% to be divided among the municipalities on a per capita basis as determined by the most recent decennial United States census of population; and
(B) Beginning July 1, 1999, and thereafter, any amount in excess of the 2% received during the fiscal year 1999 by a county in which a racetrack other than a racetrack described in paragraph (A) of this proviso is located and where the racetrack has been located in a municipality within the county since on or before January 1, 1999, shall be divided, if applicable, as follows:
(i) The county shall receive 50% of the excess amount; and
(ii) The municipality shall receive 50% of the excess amount; and
(C) This proviso ~~shall~~ may not affect the amount to be received under this subdivision by any other county other than a county described in paragraph (A) or (B) of this proviso;
(4) 1% of net terminal income shall be paid for and on behalf of all employees of the licensed racing association by making a deposit into a special fund to be established by the Racing Commission to be used for payment into the pension plan for all employees of the licensed racing association;
(5) The West Virginia Thoroughbred Development Fund created under ~~section thirteen-b, article twenty-three, chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code and the West Virginia Greyhound Breeding Development Fund created under ~~section ten of said~~ article twenty-two-h, chapter twenty-nine shall receive an equal share of a total of not less than 1.5% of the net terminal income;
(6) The ~~West Virginia Racing~~ commission shall ~~receive~~ deposit 1% of the net terminal income ~~which shall be deposited~~ and used as provided in ~~section thirteen-c, article twenty-three, chapter nineteen~~ article twenty-two-h, of this chapter, of this code;
(7) A licensee shall receive 46.5% of net terminal income;
(8) (A) The tourism promotion fund established in section twelve, article two, chapter five-b of this code shall receive 3% of the net terminal income: Provided, That for the fiscal year beginning July 1, 2003, the tourism commission shall transfer from the tourism promotion fund $5 million of the 3% of the net terminal income described in this section and section ten-b of this article into the fund administered by the West Virginia economic development authority pursuant to section seven, article fifteen, chapter thirty-one of this code, $5 million into the Capitol Renovation and Improvement Fund administered by the Department of Administration pursuant to section six, article four, chapter five- a of this code and $5 million into the Tax Reduction and Federal Funding Increased Compliance Fund; and
(B) Notwithstanding any provision of paragraph (A) of this subdivision to the contrary, for each fiscal year beginning after June 30, 2004, this 3% of net terminal income and the 3% of net terminal income described in ~~paragraph (B),~~ subdivision (8), subsection (a), section ten-b of this article shall be distributed as provided in this paragraph as follows:
(i) 1.375 percent of the total amount of net terminal income described in this section and in section ten-b of this article shall be deposited into the tourism promotion fund created under section twelve, article two, chapter five-b of this code;
(ii) 0.375 percent of the total amount of net terminal income described in this section and in section ten-b of this article shall be deposited into the Development Office Promotion Fund created under section three-b, article two, chapter five-b of this code;
(iii) 0.5 percent of the total amount of net terminal income described in this section and in section ten-b of this article shall be deposited into the Research Challenge Fund created under section ~~ten~~ twelve, article one-b, chapter eighteen-b of this code;
(iv) 0.6875 percent of the total amount of net terminal income described in this section and in section ten-b of this article shall be deposited into the Capitol Renovation and Improvement Fund administered by the Department of Administration pursuant to section six, article four, chapter five-a of this code; and
(v) 0.0625 percent of the total amount of net terminal income described in this section and in section ten-b of this article shall be deposited into the 2004 Capitol Complex Parking Garage Fund administered by the Department of Administration pursuant to section five-a, article four, chapter five-a of this code;
(9) (A) On and after July 1, 2005, 7% of net terminal income shall be deposited into the Workers' Compensation Debt Reduction Fund created in section five, article two-d, chapter twenty-three of this code: Provided, That in any fiscal year when the amount of money generated by this subdivision totals $11 million, all subsequent distributions under this subdivision shall be deposited in the special fund established by the licensee and used for the payment of regular purses in addition to the other amounts provided ~~for~~ in article ~~twenty-three, chapter nineteen of~~ article twenty- two-h, chapter twenty-nine of this code;
(B) The deposit of the 7% of net terminal income into the Worker's Compensation Debt Reduction Fund pursuant to this subdivision shall expire and not be imposed with respect to these funds and shall be deposited in the special fund established by the licensee and used for payment of regular purses in addition to the other amounts provided ~~for~~ in ~~article twenty-three, chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code, on and after the first day of the month following the month in which the Governor certifies to the Legislature that:
(i) The revenue bonds issued pursuant to article two-d, chapter twenty-three of this code, have been retired or payment of the debt service provided for; and
(ii) That an independent certified actuary has determined that the unfunded liability of the old fund, as defined in chapter twenty-three of this code, has been paid or provided ~~for~~ in its entirety; and
(10) The remaining 1% of net terminal income shall be deposited as follows:
(A) For the fiscal year beginning on the first day of July, two thousand three, the veterans memorial program shall receive one percent of the net terminal income until sufficient moneys have been received to complete the veterans memorial on the grounds of the state Capitol complex in Charleston, West Virginia. The moneys shall be deposited in the State Treasury in the Division of Culture and History special fund created under section three, article one-I, chapter twenty-nine of this code~~: Provided,~~ ~~That only after sufficient moneys have been deposited in the fund to complete the veterans memorial and to pay in full the annual bonded indebtedness~~ on the veterans memorial, not more than twenty thousand dollars of the one percent of net terminal income provided for in this subdivision shall be deposited into a special revenue fund in the State Treasury, to be known as the "John F. 'Jack' Bennett Fund". The moneys in this fund shall be expended by the division of Veterans Affairs to provide for the placement of markers for the graves of veterans in perpetual cemeteries in this state. The division of Veterans Affairs shall promulgate legislative rules pursuant to the provisions of article three, chapter twenty-nine-a of this code specifying the manner in which the funds are spent, determine the ability of the surviving spouse to pay for the placement of the marker and setting forth the standards to be used to determine the priority in which the veterans grave markers will be placed in the event that there are not sufficient funds to complete the placement of veterans grave markers in any one year, or at all. Upon payment in full of the bonded indebtedness on the veterans memorial, one hundred thousand dollars of the one percent of net terminal income provided for in this subdivision shall be deposited in the special fund in the Division of Culture and History created under section three, article one-I, chapter twenty-nine of this code and be expended by the Division of Culture and History to establish a West Virginia veterans memorial archives within the cultural center to serve as a repository for the documents and records pertaining to the veterans memorial, to restore and maintain the monuments and memorial on the capitol grounds~~: Provided, however,~~ That five hundred thousand dollars of the one percent of net terminal income shall be deposited in the State Treasury in a special fund of the Department of Administration, created under section five, article four, chapter five-a of this code, to be used for construction and maintenance of a parking garage on the State Capitol complex; and the remainder of the one percent of net terminal income shall be deposited in equal amounts in the capitol dome and improvements fund created under section two, article four, chapter five-a of this code and cultural facilities and capitol resources matching grant program fund created under section three, article one of this chapter.
(B) For each fiscal year beginning after June 30, 2004:
~~(i)~~ (A) $500,000 of the 1% of net terminal income shall be deposited in the State Treasury in a special fund of the Department of Administration, created under section five, article four, chapter five-a of this code, to be used for construction and maintenance of a parking garage on the State Capitol complex; and
~~(ii)~~ (B) The remainder of the 1% of net terminal income and all of the 1% of net terminal income described in paragraph (B), subdivision ~~(9)~~ (10), subsection (a), section ten-b of this article twenty-two-a shall be distributed as follows: The net terminal income shall be deposited in equal amounts into the Capitol Dome and Capitol Improvements Fund created under section two, article four, chapter five-a of this code and the Cultural Facilities and Capitol Resources Matching Grant Program Fund created under section three, article one, chapter twenty-nine of this code until a total of $1.5 million is deposited into the Cultural Facilities and Capitol Resources Matching Grant Program Fund; thereafter, the remainder shall be deposited into the Capitol Dome and Capitol Improvements Fund.
(d) Each licensed racetrack shall maintain in its account an amount equal to or greater than the gross terminal income from its operation of video lottery machines, to be electronically transferred by the commission on dates established by the commission. Upon a licensed racetrack's failure to maintain this balance, the commission may disable all of a licensed racetrack's video lottery terminals until full payment of all amounts due is made. Interest shall accrue on any unpaid balance at a rate consistent with the amount charged for state income tax delinquency under chapter eleven of this code. The interest shall begin to accrue on the date payment is due to the commission.
(e) The commission's central control computer shall keep accurate records of all income generated by each video lottery terminal. The commission shall prepare and mail to the licensed racetrack a statement reflecting the gross terminal income generated by the licensee's video lottery terminals. Each licensed racetrack shall report to the commission any discrepancies between the commission's statement and each terminal's mechanical and electronic meter readings. The licensed racetrack is solely responsible for resolving income discrepancies between actual money collected and the amount shown on the accounting meters or on the commission's billing statement.
(f) Until an accounting discrepancy is resolved in favor of the licensed racetrack, the commission may make no credit adjustments. For any video lottery terminal reflecting a discrepancy, the licensed racetrack shall submit to the commission the maintenance log which includes current mechanical meter readings and the audit ticket which contains electronic meter readings generated by the terminal's software. If the meter readings and the commission's records cannot be reconciled, final disposition of the matter shall be determined by the commission. Any accounting discrepancies which cannot be otherwise resolved shall be resolved in favor of the commission.
(g) Licensed racetracks shall remit payment by mail if the electronic transfer of funds is not operational or the commission notifies licensed racetracks that remittance by this method is required. The licensed racetracks shall report an amount equal to the total amount of cash inserted into each video lottery terminal operated by a licensee, minus the total value of game credits which are cleared from the video lottery terminal in exchange for winning redemption tickets, and remit the amount as generated from its terminals during the reporting period. The remittance shall be sealed in a properly addressed and stamped envelope and deposited in the United States mail no later than noon on the day when the payment would otherwise be completed through electronic funds transfer.
(h) Licensed racetracks may, upon request, receive additional reports of play transactions for their respective video lottery terminals and other marketing information not considered confidential by the commission. The commission may charge a reasonable fee for the cost of producing and mailing any report other than the billing statements.
(i) The commission has the right to examine all accounts, bank accounts, financial statements and records in a licensed racetrack's possession, under its control or in which it has an interest and the licensed racetrack shall authorize all third parties in possession or in control of the accounts or records to allow examination of any of those accounts or records by the commission.

ARTICLE 22B. LIMITED VIDEO LOTTERY.

§29-22B-306. Commission or State Lottery Commission defined.
"Commission" or "State Lottery Commission" means the ~~West Virginia lottery~~ Gaming and Racing Control Commission created by article twenty-two of this chapter.
§29-22B-308. Director defined.
"Director" means the individual appointed by the Governor to provide management and administration necessary to direct the ~~state lottery office~~ Gaming and Racing Control Agency.
§29-22B-335. West Virginia Racing Commission defined.
"West Virginia Racing Commission" and "Racing Commission" means the Gaming and Racing Control Commission.
ARTICLE 22C. WEST VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT. §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 West Virginia Lottery 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) "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.
(5) "Commission" or "State Lottery Commission" means the ~~West Virginia Lottery~~ Gaming and Racing Control Commission created by article twenty- two of this chapter.
(6) "Complimentary" means a service or item provided at no cost or at a reduced price.
(7) "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.
(8) "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 rule making.
(9) "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.
(10) "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 West Virginia Lottery table games.
(11) "Director" means the Director of the ~~West Virginia State Lottery Commission~~ Gaming and Racing Control Agency appointed pursuant to ~~section six,~~ article twenty-two of this chapter.
(12) "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.
(13) "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 1% 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.
(14) "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 West Virginia Lottery table game at a licensed racetrack.
(15) "Gross receipts" means the total of all sums including valid or invalid checks, currency, tokens, coupons (excluding match play coupons), vouchers or instruments of monetary value whether collected or uncollected, received by a racetrack with table games from table gaming operations at a race track, including all entry fees assessed for tournaments or other contests.
(16) "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.
(17) "Licensed racetrack" means a thoroughbred horse or greyhound dog racing facility licensed under both article twenty- two-a and article twenty-two-h, of this chapter ~~and article twenty-three, chapter nineteen~~ of this code.
(18) "License" means any license applied for or issued by the commission under this article, including, but not limited to:
(A) A license to act as agent of the commission in operating West Virginia Lottery 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 West Virginia Lottery 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; or
(D) A license to provide management services under a contract to a racetrack licensed under this article to operate table games.
(19) "Licensee" means any person who is licensed under any provision of this article.
(20) "Lottery" means the public gaming systems or games regulated, controlled, owned and operated by the State ~~Lottery~~ Gaming and Racing Control Commission in the manner provided by general law, as provided in this article and in articles twenty- two, twenty-two-a, twenty- two-b and twenty-five of this chapter.
(21) "Member" means a commission member appointed to the ~~West Virginia Lottery Commission~~ Gaming and Racing Control Commission under article twenty-two of this chapter.
(22) "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.
(23) "Own" means any beneficial or proprietary interest in any real or personal property, including intellectual property, and also includes, but is not limited to, any direct or indirect beneficial or proprietary interest in any business of an applicant or licensee.
(24) "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.
(25) "Player" or "Patron" means a person who plays a racetrack video lottery game or a West Virginia Lottery table game at a racetrack licensed under this article to have table games.
(26) "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.
(27) "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 and holds a valid racing license granted by the ~~West Virginia Racing~~ commission pursuant to the provision of ~~article twenty-three, chapter nineteen~~ article twenty-two-h, chapter twenty-nine of this code, which permits the racetrack as an agent of the commission for the limited purpose of operation of West Virginia Lottery 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.
(28) "Racetrack Table Games Fund" means the special fund in the State Treasury created in section twenty-seven of this article.
(29) "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.
(30) "Supplier" means a person who the commission has identified under legislative rules of 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.
(31) "Wager" means a sum of money or thing of value risked on an uncertain occurrence.
(32) "West Virginia Lottery 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 or any variation of these games similar in design or operation and expressly authorized by 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.
(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 on West Virginia Lottery table games.
ARTICLE 22D. CHARITABLE BINGO.
§29-22D-1. Legislative intent.
The Legislature, in recognition of the recreational enjoyment the people of West Virginia receive from playing bingo and of the need charitable and public service organizations have for a practicable way of raising funds, declares its intent to grant the privilege of holding bingo games to those organizations which qualify for a license as provided below.
§29-22D-2. Powers and duties transferred to Gaming and Racing Control Commission.

Effective the July 1, 2009, the powers and duties of the Tax Commissioner under this article, including, but not limited to, the Tax Commissioner's authority to investigate and audit for compliance with this article are transferred to the Director of the Gaming and Racing Control Agency.
§29-22D-3. Effect of transfer on existing rules, licenses and permits.
(a) All rules promulgated by the Tax Commissioner and in effect July 1, 2009, shall remain in effect until superseded, or except as amended or repealed, in accordance with the provisions of this article.
(b) Any license or permit issued by the Tax Commissioner under the provisions of this article prior to July 1, 2009, which has not expired, been suspended or revoked prior to July 1, 2009, shall remain valid until the expiration and may be renewed.
§29-22D-4. Definitions.
For purposes of this article, unless specified otherwise:
(a) "Bingo" means the game wherein participants pay consideration for the use of one or more cards bearing several rows of numbers in which no two cards played in any one game contain the same sequence or pattern. When the game commences, numbers are selected by chance, one by one, and announced. The players cover or mark those numbers announced as they appear on the card or cards which they are using. The player who first announces that he or she has covered a predetermined sequence or pattern which had been preannounced for that game is, upon verification that he or she has covered the predetermined sequence or pattern, declared the winner of that game.
(b) "Bingo occasion" or "occasion" means a single gathering or session at which a series of one or more successive bingo games is conducted by a single licensee.
(c) "Charitable or public service activity or endeavor" means any bona fide activity or endeavor which directly benefits a number of people by:
(1) Assisting them to establish themselves in life as contributing members of society through education or religion; or
(2) Relieving them from disease, distress, suffering, constraint, or the effects of poverty;
(3) Increasing their comprehension of and devotion to the principles upon which this nation was founded and to the principles of good citizenship;
(4) Making them aware of or educating them about issues of public concern so long as the activity or endeavor is not aimed at influencing legislation or supporting or participating in the campaign of any candidate for public office;
(5) By lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which government would normally render to the people;
(6) Providing or supporting nonprofit community activities for youth, senior citizens or the disabled; or
(7) Providing or supporting nonprofit cultural or artistic activities.
(d) "Charitable or public service organization" means a bona fide, not for profit, tax-exempt, benevolent, educational, philanthropic, humane, patriotic, civic, religious, fraternal, or eleemosynary incorporated or unincorporated association or organization; or a volunteer fire department, rescue unit or other similar volunteer community service organization or association; but does not include any nonprofit association or organization, whether incorporated or not, which is organized primarily for the purposes of influencing legislation or supporting or promoting the campaign of any candidate for public office.
An organization or association is tax-exempt if it is, and has received from the Internal Revenue Service a determination letter that is currently in effect stating that the organization is, exempt from federal income taxation under subsection 501(a) and described in subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), 501(c)(19) or 501(d) of the Internal Revenue Code.
(e) "Commissioner," or "Tax Commissioner" means the State Tax Commissioner.
(f) "Concession" means any stand, booth, cart, counter or other facility, whether stationary or movable, where beverages, both alcoholic and nonalcoholic, food, snacks, cigarettes or other tobacco products, newspapers, souvenirs or any other items are sold to patrons by an individual operating the facility. Notwithstanding anything contained in article seven, chapter sixty of this code to the contrary, "concession" includes beverages which are regulated by and are subject to the provisions of chapter sixty of this code: Provided, That in no case may the sale or the consumption of alcoholic beverages or nonintoxicating beer be permitted in any area where bingo is conducted.
(g) "Conduct" means to direct the actual playing of a bingo game by activities including, but not limited to, handing out bingo cards, collecting fees, drawing the numbers, announcing the numbers, posting the numbers, verifying winners and awarding prizes.
(h) "Director" means the director of the Gaming and Racing Control Agency.
(i) "Expend net proceeds for charitable or public service purposes" means to devote the net proceeds of a bingo occasion or occasions to a qualified recipient organization or as otherwise provided by this article and approved by the director pursuant to section fifteen of this article.
(j) "Gross proceeds" means all moneys collected or received from the conduct of bingo at all bingo occasions held by a licensee during a license period; this term may not be considered to include any moneys collected or received from the sale of concessions at bingo occasions.
(k) "Joint bingo occasion" means a single gathering or session at which a series of one or more successive bingo games is conducted by two or more licensees.
(l) "Licensee" means any organization or association granted an annual, limited occasion or state fair bingo license pursuant to the provisions of this article.
(m) "Net proceeds" means all moneys collected or received from all the conduct of bingo at bingo occasions held by a licensee during a license period after payment of expenses authorized by sections fourteen, eighteen and twenty-six of this article; this term may not be considered to include moneys collected or received from the sale of concessions at bingo occasions.
(n) "Person" means any individual, association, society, incorporated or unincorporated organization, firm, partnership or other nongovernmental entity or institution.
(o) "Patron" means any individual who attends a bingo occasion other than an individual who is participating in the conduct of the occasion or in the operation of any concession, whether or not the individual is charged an entrance fee or plays any bingo games.
(p) "Qualified recipient organization" means any bona fide, not for profit, tax-exempt, as defined in subdivision (d) of this section, incorporated or unincorporated association or organization which is organized and functions exclusively to directly benefit a number of people as provided in subparagraphs (1) through (7), subdivision (c) of this section. "Qualified recipient organization" includes without limitation any licensee which is organized and functions exclusively as provided in this subdivision.
(q) "Venue" means the location in which bingo occasions are held.

§29-22D-5. Who may hold bingo games; application for license; licenses not transferable.

Any charitable or public service organization which has been in existence in this state two years prior to filing an application for a bingo license may hold bingo occasions in accordance with the provisions of this article during the time it holds a valid license.
Application for a bingo license shall be made to the and shall be on a form which shall be supplied by him or her. The application shall contain the information required by section eleven of this article and any other information which the director considers necessary. An application shall be filed not less than sixty days before the date when the applicant intends to hold its first bingo occasion. No bingo occasion may be held until an application has been approved by the director, and the bingo license has been received: Provided, That under no circumstances may a licensee organization conduct a bingo occasion before the sixty day filing period between the filing of the application and date of the first bingo occasion has elapsed: Provided, however, That the date the application is received by the director shall begin the sixty day filing period. The director shall send the applicant its license within five days after approval of the bingo application. If the filing period has elapsed, and the application has not been denied by the director, and the license has not been received by the applicant, the applicant may consider the application approved and begin to hold bingo occasions. The director shall send a bingo license to the applicant within five days after the expiration of the filing period if the application has not been otherwise denied.
No bingo license issued pursuant to this article may be transferred.
§29-22D-6. Annual license; conditions on holding of games.
A charitable or public service organization or any of its auxiliaries or other organizations otherwise affiliated with it may apply for an annual license. Only one license per year in the aggregate may be granted to a charitable or public service organization and all of its auxiliaries or other associations or organizations otherwise affiliated with it: Provided, That for purposes of this section the various branches, chapters or lodges of any national association or organization or local churches of a nationally organized church are not considered affiliates or auxiliaries of each other. The director shall by rule provide for the manner for determining to which organization, whether the parent organization, an affiliate or an auxiliary, the one license allowed under this section is granted. An annual license is valid for one year from the date of issuance and entitles only the licensee to hold no more than two bingo occasions per week. No two or more organizations may hold a joint bingo occasion under any annual licenses. No bingo occasion held pursuant to an annual license may exceed six hours duration.
A licensee shall display its annual bingo license conspicuously at the location where the bingo occasion is held.
All bingo occasions shall be open to the general public: Provided, That no licensee shall permit or allow any individual under the age of eighteen to participate in the playing of any bingo game with knowledge or reason to believe that the individual is under the age of eighteen: Provided, however, That an individual under the age of eighteen may attend the playing of a bingo game when accompanied by and under the supervision of an adult relative or a legal guardian of the individual: Provided further, That nothing contained herein may be construed to prohibit junior volunteer firefighters sixteen years of age or older from assisting the volunteer fire company of which junior firefighter is a member in the conduct of an event under this article where junior firefighter is supervised by a senior member of the same volunteer fire company who is over the age of twenty-one years.
Any licensee may receive and cash personal checks in an amount not to exceed $100 during the normal operation of a bingo game.

§29-22D-7. Limited occasion license; conditions on holding of games.

A limited occasion license is valid only for the time period specified in the application and entitles only the licensee to hold a bingo occasion once every twenty-four hours for a time period not to exceed two weeks. Two or more organizations may hold a joint bingo occasion provided each participating organization has been granted a limited occasion bingo license for jointly held occasion. No bingo occasion held pursuant to a limited occasion license may exceed twelve hours in duration. Each charitable or public service organization which desires to hold bingo occasions pursuant to this section, or any of its auxiliaries or other organizations otherwise affiliated with it, shall obtain a limited occasion license notwithstanding the fact that it holds a valid annual license: Provided, That no licensee which holds an annual license may obtain more than one limited occasion license.
Only three limited occasion licenses per year in the aggregate may be granted to a charitable or public service organization and all of its auxiliaries or other associations or organizations otherwise affiliated with it, none of which hold an annual license. For purposes of this section, the various branches, chapters or lodges of any national association or organization or local churches of a nationally organized church are not considered affiliates or auxiliaries of each other. The director shall by rule provide the manner for determining to which organization, whether the parent organization, an affiliate or an auxiliary, the three licenses allowed under this section are granted.
A licensee shall display its limited occasion license conspicuously at the location where the bingo occasion is held.
All bingo occasions shall be open to the general public: Provided, That no licensee shall permit or allow any individual under the age of eighteen to participate in the playing of any bingo game with knowledge or reason to believe that the individual is under the age of eighteen: Provided, however, That an individual under the age of eighteen may attend the playing of a bingo game when accompanied by and under the supervision of an adult relative or a legal guardian of the individual.
§29-22D-8. Venue.
Any charitable or public service organization or any of its auxiliaries or other organizations otherwise affiliated with it possessing an annual or limited occasion bingo license or a super bingo license shall conduct a bingo occasion only in the county within which the organization is principally located.
Any licensee which, in good faith, finds itself unable to comply with this requirement shall apply to the director for permission to conduct a bingo occasion in a location other than the county within which the organization is principally located: Provided, That the location shall be in a contiguous county, or, if not in a contiguous county, and not in the county where the licensee organization has its principal location, the location of the proposed bingo occasion may be no more than thirty air miles from the county within which the organization is principally located. The application shall be made on a form provided by the director and shall include the particulars of the requested change and the reasons for the change. The application shall be filed no later than sixty days before any scheduled bingo occasion.
For purposes of this section, the principal location of a licensee is the address of the licensee shown on the licensee's West Virginia business registration certificate.

§29-22D-9. License fee and exemption from taxes.

(a) A license fee shall be paid to the director for annual licenses in the amount of $500, except that for volunteer or nonprofit groups who gross less than $20,000 the fee shall be $200 and for bona fide senior citizen organizations the fee is $50. A license fee shall be paid to the director for a limited occasion license in the amount of $100. A license fee of $500 shall be paid to the director for a state fair license as provided in section twenty-six of this article. All revenue from the license fee shall be deposited in the nonappropriated special account created in section eight-a, article twenty-two, chapter twenty-nine shall be used by the Gaming and Racing Control Agency to pay salaries and other expenses. The expenditures may include, but may not be limited to, employee compensation, equipment, computer software, office supplies, rent and travel expenses. On the last day of each fiscal year, unencumbered and undesignated funds from deposits of charitable bingo fees imposed by article twenty-two-d, charitable raffle fees imposed by article twenty-two-e, and charitable raffle boards and games fees imposed by article twenty-two-f of this chapter that remain in the nonappropriated special account in excess of $250,000 shall be transferred to the General Revenue Fund. The license fee imposed by this section is in lieu of all other license or franchise taxes or fees of this state and no county or municipality or other political subdivision of this state is empowered to impose a license or franchise tax or fee.
(b) The gross proceeds derived from the conduct of a bingo occasion are exempt from state and local business and occupation taxes, income taxes, excise taxes and all special taxes. The licensee is exempt from payment of consumers sales and service taxes and use taxes on all purchases for use or consumption in the conduct of a bingo occasion and is exempt from collecting consumers sales taxes on any admission fees and sales of bingo cards: Provided, That the exemption provided in this subsection does not apply to state fair bingo proceeds.
§29-22D-10. Super bingo license.
Any charitable or public service organization may, upon payment of a $5,000 license fee, apply to the director for issuance of an annual super bingo license. All revenue from the license fee shall be deposited in the nonappropriated special account created in section eight-a, article twenty-two, chapter twenty-nine shall be used by the Gaming and Racing Control Agency to pay salaries and other expenses. The director shall promulgate legislative rules in accordance with article three, chapter twenty-nine-a of this code specifying those organizations which qualify as charitable or public service organizations.
A holder of a super bingo license may conduct one super bingo occasion each month during the period of the license at which up to $50,000 in prizes may be awarded, notwithstanding the $10,000 limitation on prizes specified in section ~~ten~~ fourteen of this article.
A charitable or public service organization that has a regular or limited occasion bingo license may apply for a super bingo license.
§29-22D-11. Information required in application.
An application for a bingo license shall include the following information:
(a) Name of the applicant and name and headquarter's address of any state or national organization of which it is a local branch or lodge;
(b) The address and telephone number of the applicant organization, if any. If the applicant organization has no telephone, then the address and telephone number of the person applying on behalf of the organization shall be supplied;
(c) For a limited occasion license, the names and addresses of two or more bona fide active members of the applicant organization who are charged with overall responsibility for the applicant's bingo operations, at least one of whom shall be present at all times bingo is conducted; and the names and addresses of the highest elected officer of the licensee and his officially appointed designee, one of whom shall be present at all times bingo is conducted; for an annual license, the names, addresses and telephone numbers of three or more bona fide active members of the applicant organization who are charged with overall responsibility for the applicant's bingo operations, at least one of whom shall be present at all times bingo is conducted; and the names and addresses and telephone numbers of the highest elected officer of the licensee and his officially appointed designee, one of whom shall be present at all times bingo is conducted;
(d) The address or location of the premises where licensed bingo games are to be held;
(e) Information as may be required by the director to satisfy that the applicant meets the requirements of:
(1) Being a charitable or public service organization as required by this article; and
(2) Being in existence in this state two years prior to filing an application for a bingo license.
(f) The day or days of the week, and the time or times when the bingo occasions will be held;
(g) The name of the owner of the premises where the bingo occasions are to be held and a copy of all rental agreements involved if leased or subleased by the applicant from the owner or lessee;
(h) A statement as to whether the applicant has ever had a previous application for any bingo license refused, or whether any previous license has been revoked or suspended;
(i) A statement of the charitable or public service purpose or purposes for which the bingo proceeds will be expended;
(j) A statement or statements to the effect that the individuals specified in subdivision (c) of this section and the officers of the applicant understand:
(1) That it is a violation of this article to allow any persons other than those authorized by this article to conduct any part of the bingo games or concessions operated in conjunction therewith;
(2) That it is required to file the reports and keep the records as provided by this article; and
(3) That it is a crime to violate the provisions of this article and, in addition, that a violation may result in suspension or revocation of its license and denial of applications for subsequent licenses;
(k) A sworn statement by an authorized representative of the applicant that the information contained in the application is true to the best of his knowledge;
(l) A list and description of estimated expenses to be incurred in connection with the holding of the bingo occasions and any concessions operated and the name and address of each payee. If a concession is operated in accordance with the provisions of section eighteen of this article, a copy of any written agreement or an explanation of any oral agreement providing for any type of remuneration to be received by the concession operator shall be attached to the application;
(m) A list of the names and addresses of all officers and members of the board of directors, governors or trustees, if any, of the applicant organizations; and
(n) Any other necessary and reasonable information which the director may require.
§29-22D-12. Amendment of license.
If circumstances beyond the control of the licensee organization prohibit it from holding any bingo occasion in accordance with the information provided by it in its license application form, the licensee organization may request approval by the director to:
(a) Modify the holding of one or more bingo occasions held pursuant to an annual license if the changes are temporary; or
(b) Modify the holding of one or more bingo occasions held pursuant to a limited occasion license if the changes affect fewer than one-third the occasions to be held under the license; or
(c) Amend its original license if the changes to the holding of occasions pursuant to an annual license are permanent or if the changes affect one third or more of the occasions to be held under a limited occasion license.
§29-22D-13. Licensee rules and regulations.
Each licensee may adopt regulations, not inconsistent with or in violation of the provisions of this article, or rules or promulgated hereunder, to govern the conduct of bingo occasions, except that no licensee may allow an individual not present to play any bingo games.
Any regulations adopted by the licensee shall be made available for inspection at all bingo occasions held. Any regulations adopted are a part of the records required to be kept by section twenty of this article.
§29-22D-14. Limits on prizes awarded -- General provisions.
Except as otherwise provided in section twenty-six of this article, during the period of a license the average total prizes awarded by a licensee, or in the aggregate by two or more limited occasion licensees holding a joint bingo occasion, for any bingo occasion held pursuant to an annual or limited occasion license, may not exceed $10,000 in value.
Prizes may be money or merchandise other than beer, nonintoxicating beer, wine, spirits or alcoholic liquor as defined in section five, article one, chapter sixty of this code. If the prizes are merchandise, the value assigned to them is their fair market value at the time of purchase.
§29-22D-15. Operator of bingo games and related concessions.
(a) Except as provided in sections eighteen and twenty-six of this article, the only persons, as defined in section four of this article, that may participate in any manner in the conduct of any bingo game or operate any concession in conjunction with a bingo occasion are either:
(1) Residents of this state and who are active members of the licensee organization or its authorized auxiliary organization and who have been active members in good standing of the licensee organization or its authorized auxiliary for at least two years prior to the date of filing of the application for a charitable bingo license or the most recent filing of an application for renewal of the license; or
(2) Employees of the licensee organization or its authorized auxiliary organization who are:
(A) Residents of this state;
(B) Residents of a state bordering this state if the county of his or her residence is contiguous to the county in this state in which the bingo operation is conducted; or
(C) Residents of a bordering state who reside within thirty-five miles of the county in which the bingo operation is conducted.
(b) Notwithstanding anything contained in this article to the contrary, no individual under the age of eighteen years may directly or indirectly participate in the conduct of a bingo game, except for junior firefighters, in accordance with the provisions of this article.
§29-22D-16. Compensation.
Except as provided otherwise in sections seventeen, eighteen and twenty-six of this article, no individual who participates in any manner in the conduct of a bingo occasion or the operation of a concession in conjunction with a bingo occasion may receive or accept any commission, wage, salary, reward, tip, donation, gratuity or other form of compensation or remuneration whether directly or indirectly, regardless of the source, for his work, labor or services.
§29-22D-17. Compensation of bingo operator; number of employees.
(a) Within the guidelines set forth in subsections (b), (c) and (d) of this section, a licensee may pay a salary, the minimum of which is the federal minimum wage and the maximum of which is not more than 120% of the state minimum wage to operators of bingo games who are either:
(1) Active members of the licensee organization and who have been active members in good standing for at least two years prior to the date of filing of the application for a charitable bingo license or the most recent filing of an application for renewal of the license; or
(2) Employees of the licensee organization or its authorized auxiliary organization who are:
(A) Residents of this state;
(B) Residents of a state bordering this state if the county of his or her residence is contiguous to the county in this state in which the bingo operation is conducted; or
(C) Residents of a bordering state who reside within thirty-five miles of the county in which the bingo operation is conducted.
(b) If the licensee's gross receipts from bingo occasions equal or exceed $100,000 for the licensee's most recently filed annual financial report, a salary may be paid to not more than eight operators.
(c) If the licensee's gross receipts from bingo occasions are less than $100,000, but equal or exceed $50,000 for the licensee's most recently filed annual financial report, a salary may be paid to not more than five operators.
(d) If the licensee's gross receipts from bingo occasions are less than $50,000 for the licensee's most recently filed annual financial report, a salary may be paid to not more than three operators.
(e) If the licensee also possesses a super bingo license, it may pay a salary to not more than fifteen operators during the super bingo occasion.
(f) In the case of a licensee lawfully holding a charitable bingo occasion simultaneously with a charitable raffle occasion, the number of paid charitable bingo operator employees allowed under this limitation for bingo licensees is in addition to the charitable raffle operator employees allowed under section nineteen, article twenty-five of this chapter. Licensees holding simultaneous occasions shall pay bingo operators from the proceeds of bingo operations and shall pay raffle operators from the proceeds of raffle operations and the charitable bingo fund and the charitable raffle fund and payments from the funds may not be commingled.
(g) For purposes of the limitations set forth in this section, the term "operator" or "bingo operator" or "raffle operator" does not include concession stand workers. Wages paid to concession workers may not exceed more than 120% of the state minimum wage.
§29-22D-18. Concessions exception.
A licensee may allow any individual, firm, partnership or corporation to operate concessions in conjunction with bingo occasions, and to be compensated for the operation, only if the individual, firm, partnership or corporation agrees to donate all net proceeds received from the sale of the concessions and all compensation received from the licensee organization to charitable or public service purposes as specified under section four, of this article.

§29-22D-19. Payment of reasonable expenses from proceeds; net proceeds disbursement.

(a) The reasonable, necessary and actual expenses incurred in connection with the conduct of bingo occasions, not to exceed 25% of the gross proceeds collected during a license period, may be paid out of the gross proceeds of the conduct of bingo, including, but not limited to:
(1) Rent paid for the use of the premises: Provided, That a copy of the rental agreement was filed with the bingo license application and any changes to the rental agreement were filed within ten days of being made: Provided, however, That in no event may the rent paid for the use of any premises exceed the fair market value of rent for the premises;
(2) The cost of custodial services;
(3) The cost to the licensee organization for equipment and supplies used to conduct the bingo occasion;
(4) The cost to the licensee organization for advertising the bingo occasion;
(5) The cost of hiring security personnel, licensed pursuant to the provisions of article eighteen, chapter thirty of this code; and
(6) The cost of providing child care services to the raffle patrons: Provided, That any proceeds received from the provision of child care services shall be handled the same as raffle proceeds.
(b) The actual cost to the licensee for prizes, not to exceed the amounts as specified in section fourteen of this article, may be paid out of the gross proceeds of the conduct of bingo.
(c) The cost of any refreshments, souvenirs or any other item sold or otherwise provided through any concession to the patrons may not be paid for out of the gross proceeds from the bingo occasion. The licensee shall expend all net bingo proceeds and any interest earned on the proceeds for the charitable or public service purposes stated in the application within one year after the expiration of the license under which the bingo occasions were conducted. A licensee which does not qualify as a qualified recipient organization may apply to the director at the time it applies for a bingo license or as provided in subsection (e) of this section for permission to apply any or all of its net proceeds to directly support a charitable or public service activity or endeavor which it sponsors.
(d) No gross proceeds from any bingo operation may be devoted or in any manner used by any licensee or qualified recipient organization for the construction or acquisition of real or personal property except that which is used exclusively for one or more charitable or public service purposes or as provided in subdivision (3), subsection (a) of this section.
(e) The director has the authority to disapprove any contract for sale of goods or services to any charitable bingo licensee for use in or with relation to any charitable bingo operation or occasion, or any lease of real or tangible personal property to any charitable bingo licensee for use in or with relation to any charitable bingo operation or occasion, if the contract or lease is unreasonable or not representative of fair market value. Contracts or leases which are disapproved shall be considered to be in contravention of this article, and are void. Any attempt by any charitable bingo licensee to engage in transactions under the terms of any lease or contract that has been disapproved is grounds for revocation or suspension of the charitable bingo license and for refusal by the director to renew the charitable bingo license.
(f) If a property owner or lessee, including his or her agent, has entered into a rental contract to hold super bingo occasions on his or her premises, the premises shall be rented, for super bingo occasions, to not more than four super bingo licensees during any period of four consecutive calendar weeks: Provided, That each of the charitable or public service organizations desiring to hold a super bingo occasion must possess its own super bingo license. Subject to this limitation, the premises may be used for super bingo occasions during two consecutive days during a conventional weekend. For purposes of this subsection, the term "conventional weekend" means Saturday and Sunday: Provided, however, That the super bingo occasions may occur at the same facility no more often than alternating weekends during a calendar month.
(g) Any licensee which, in good faith, finds itself unable to comply with the requirements of this provision shall apply to the director for permission to expend its net proceeds for one or more charitable or public service purposes other than that stated in its license application or for permission to expend its net proceeds later than the one-year time period specified in this section. The application shall be on a form furnished by the director and shall include the particulars of the requested changes and the reasons for the changes. The application shall be filed no later than sixty days before the end of the one-year period specified in this section. In the case of an application to extend the time in which the net proceeds are to be expended for a charitable or public service purpose, the licensee shall file periodic reports with the director as the director directs until the proceeds are expended.
§29-22D-20. Records; director audit.
Any licensee which holds a bingo occasion as provided by this article shall maintain a separate checking account and separate bookkeeping procedure for its bingo operations: Provided, That nothing in this article restricts a licensee from transferring moneys in the account from a bingo occasion to an account created under section seventeen, article twenty-two-d of this chapter in an amount not to exceed the actual loss of the raffle occasion receiving the transfer: Provided, however, That money transferred shall be withdrawn only by checks having preprinted consecutive numbers and made payable to the account created under section seventeen, article twenty-two-d of this code. Money for expenses shall be withdrawn only by checks having preprinted consecutive numbers and made payable to a specific person, firm or corporation and at no time shall a check be made payable to cash. A licensee shall maintain all records required by this article for at least three years and the records shall be open to the director for reasonable inspection. Whenever the director has reasonable cause to believe a licensee has violated any of the provisions of this article, he or she may perform or cause to be performed an audit of the licensee's books and records: Provided further, That the tax director shall perform or cause to be performed an audit of the books and records of any licensee that has awarded total prizes in excess of $175,000. The director shall file a copy of the completed audit with the county commission of the county wherein the licensee holds bingo occasions.
§29-22D-21. Advertising.
A licensee may advertise its bingo occasions in a manner reasonably necessary to promote the occasion: Provided, That a licensee may not hire any person, as defined in section four of this article, to develop or conduct an advertising campaign to promote any bingo occasion.

§29-22D-22. Fraud; penalties.

In addition to any other offense set forth in this code, any person who or licensee which knowingly conducts or participates in a fraudulently or deceptively conducted bingo game with intent to defraud is guilty of a felony, and, upon conviction thereof, shall be fined not less than $500 nor more than $10,000, or imprisoned in the penitentiary not less than one, nor more than five years, or both fined and imprisoned.

§29-22D-23. Obtaining license fraudulently; penalty.

In addition to any other offense set forth in this code, any individual, association, organization or corporation which knowingly obtains or assists another in obtaining a bingo license under false, deceptive or fraudulent pretenses is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $500 nor more than $10,000.
§29-22D-24. Violation of provisions; penalties.
Any person who knowingly violates the provisions of this article other than sections twenty-two and twenty-three is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $100 nor more than $1,000. Any individual who knowingly violates the provisions of this article other than sections twenty- two and twenty-three is guilty of a misdemeanor, and, upon a second or subsequent conviction thereof, shall be fined not less than $100 nor more than $1,000 or imprisoned not more than one year or both fined and imprisoned.
§29-22D-25. Proceeds of state fair.
The Legislature declares that the net proceeds of any bingo game which accrue to the West Virginia state fair are considered used for charitable or public service purposes as defined in section four of this article. Any proceeds allowed by the state fair board to be paid to or retained by persons who conduct bingo occasions at the state fair are deemed to be expenses incurred by the state fair board.
§29-22D-26. State fair bingo license; rules and regulations.
The West Virginia state fair board may apply annually to the director for a state fair bingo license to provide for the conduct of bingo occasions at the state fair. The license shall permit the state fair board to have one or more persons conduct bingo occasions at the state fair who have conducted bingo occasions on a regular basis for a least two years prior to the date of the state fair board's application. A license fee of $500 shall be paid to the director for the state fair bingo license. The provisions of sections fourteen, fifteen, sixteen, and thirty-two of this article do not apply to a state fair bingo license. No state fair bingo license may be issued unless the application includes a copy of any lease or agreement entered into between the state fair board and the persons who are to conduct bingo occasions at the state fair. The state fair board may adopt regulations, not inconsistent with or in violation of the provisions of this article, to govern the holding of bingo occasions at the state fair.
§29-22D-27. Administration; rules and regulations.
(a) The director shall administer the provisions of this article in accordance with the provisions of article three, chapter twenty-nine-a of this code.
(b) The director shall deny an application for a license if he finds that the issuance thereof would be in violation of the provisions of this article.
(c) The director may revoke, suspend or refuse to renew a license if the licensee or any member of a licensee organization has been convicted pursuant to section twenty-two or twenty-three of this article and the director finds that it would be in the public interest to do so; or if the licensee has violated any of the provisions of this article: Provided, That before revoking or suspending a license issued under the authority of this article, the director shall give at least ten days, three days for a limited occasion or state fair license, notice to the licensee. Notice shall be in writing, shall state the reason for revocation or suspension and shall designate a time and place when the licensee may show cause why the license should not be revoked or suspended. Notice shall be sent by certified mail to the address of the licensee or served by certified mail or by personal or substituted service on the person who applied for the license on behalf of the licensee. The licensee may, at the time designated for the hearing, produce evidence in its behalf and be represented by counsel. A decision of the director revoking or suspending a license is subject to judicial review upon the appeal of a licensee.
(d) The director may suspend, revoke or refuse to renew any license issued hereunder for a material failure to maintain the records or file the reports required by this article if the director finds that ~~said~~ the failure will substantially impair the director's ability to administer the provisions of this article with regard to the licensee.
(e) The director shall promulgate rules necessary to the administration of this article.
(f) The provisions of article five, chapter twenty-nine-a of this code apply to the denial, revocation, suspension of or refusal to renew a license hereunder.
(g) The burden of proof in any administrative or court proceeding is on the applicant to show cause why a bingo license should be issued or renewed and on the licensee to show cause why its license should not be revoked or suspended.
(h) Notwithstanding any other provision of this article, the director may issue an emergency order suspending a bingo license in the following manner:
(1) An emergency order may be issued only when the director believes that:
(a) There has been a criminal violation of this article;
(b) The action is necessary to prevent a criminal violation of this article; or
(c) The action is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare.
(2) The emergency order shall set forth the grounds upon which it is issued, including a statement of facts constituting the alleged emergency necessitating the action. This order shall be served by personal or substituted service on the licensee or the person who applied for the license on behalf of the licensee.
(3) The emergency order is effective immediately upon issuance and service upon the licensee.
(4) Within five days after issuance of an emergency order, the director shall set a time and place for a hearing wherein the licensee may appear and show cause why its license should not be revoked.
§29-22D-28. Filing of reports.
Each licensee holding an annual license shall file with the director a quarterly and an annual financial report summarizing its bingo operations for the time period covered by the report. Each quarterly report shall be filed within twenty days after the end of the quarter which it covers. The annual report shall be filed within thirty days after the expiration of the license under which the operations covered by the report were held. The time period covered by the annual report is the full license year or, at the election of a licensee receiving state or federal funding, the most recently ended state or federal fiscal year.
Each licensee holding a limited occasion license or state fair license shall file with the director a financial report summarizing its bingo operations for the license period within thirty days after the expiration of the license under which the operations covered by the report are held. The report shall contain the name, address and social security number of any individual who receives, during the course of a bingo occasion, prizes, the aggregate value of which exceeds $100, and other information required by the director: Provided, That any licensee failing to file the report when due is liable for a penalty of $25 for each month or fraction of a month during which the failure continues, the penalty not to exceed $100: Provided, however, That annual financial reports must contain either a compilation or review of the financial report by a certified or licensed public accountant, or may be audited by a certified or licensed public accountant, if a licensee's gross receipts exceed $50,000.

§29-22D-29. Filing of copy of license; application open to public inspection.

Whenever a license is granted pursuant to this article, the director shall cause a copy of the license to be filed and recorded with the clerk of the county commission of the county in which the bingo occasions are to be held. A copy of the application shall be made available for public inspection in the office of the director.
§29-22D-30. County option election.
A county commission is authorized to call a local option election for the purpose of determining the will of the voters as to whether the provisions of this article shall continue in effect in the county: Provided, That no local option election may be called to disapprove the playing of bingo games at the state fair in accordance with the provisions of this article.
A petition for local option election shall be in the form specified in this section and shall be signed by qualified voters residing within the county equal to at least 10% of the persons qualified to vote within the county at the last general election. The petition may be in any number of counterparts and is sufficient if substantially in the following form:
PETITION ON LOCAL OPTION ELECTION RESPECTING THE CONDUCT OF BINGO GAMES FOR CHARITABLE PURPOSES IN ............ COUNTY, WEST VIRGINIA
Each of the undersigned certifies that he or she is a person residing in ............. County, West Virginia, and is duly qualified to vote in that county under the laws of the State, and that his or her name, address, and the date of signing this petition are correctly set forth below.
The undersigned petition the County Commission to call and hold a local option election at (1) a special or (2) the next primary, general or special election (the petition shall specify (1) or (2)) upon the following question: Shall the provisions of article twenty-two-d, chapter twenty-nine of the Code of West Virginia, 1931, as amended, continue in effect in ............ County, West Virginia?
Name Address Date
.......................................................
(Each person signing must specify either his post-office address or his street number.)
Upon the filing of a petition for a local option election in accordance with the provisions of this section, the county commission shall enter an order calling a local option election as specified in the petition. The county commission shall give notice of the local option election by publication thereof 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 is the county. The notice shall be so published within fourteen consecutive days next preceding the election.
Each person qualified to vote in the county at any primary, general or special election shall likewise be qualified to vote at the local option election. The election officers appointed and qualified to serve at any primary, general or special election shall conduct the local option election. If the local option election is to be held at the same time as a primary, general or other special election, it shall be held in connection with and as a part of that primary, general or special election. The ballots in the local option election shall be counted and returns made by the election officers and the results certified by the commissioners of election to ~~said~~ the county commission which shall canvass the ballots, all in accordance with the laws of the state of West Virginia relating to primary and general elections insofar as the same are applicable. The county commission shall, without delay, canvass the ballots cast at the local option election and certify the result thereof.
The ballot to be used in the local option election shall have printed thereon substantially the following:
"Shall the playing of bingo to raise money for charitable or public service organizations continue in effect in .............. County of West Virginia?
/ / Yes / / No
(Place a cross mark in the square opposite your choice.)"
If a majority of the voters voting at any local option election vote no on the foregoing question, the provisions of article twenty-two-d, chapter twenty-nine of the code of West Virginia, 1931, as amended, no longer continue in effect in the county.
No local option election may be called in a county to resubmit question to the voters of that county, whether the question was approved or disapproved at the previous local option election, sooner than five years after the last local option election.

§29-22D-31. Prohibited acts by convicted individuals and corporations.

Any individual, organization, association or corporation convicted of any felony, or a misdemeanor for a gambling offense, is prohibited from directly or indirectly obtaining a bingo license, conducting a bingo game, operating a concession, or leasing or providing to a licensee organization any premises where bingo occasions may be held within ten years from the conviction.
§29-22D-32. Restrictions on use of bingo equipment.
A licensee may use only bingo equipment which it owns or which it borrows without compensation, or leases for a reasonable and customary amount, from another licensee.

§29-22D-33. Certain operators of bingo games to provide for smoking and nonsmoking sections.

Any bingo operator who distributes more than one hundred bingo cards or bingo sheets at any bingo occasion shall provide a smoking and nonsmoking section, if smoking is permitted.

§29-22D-34. Additional remedies for the ~~commissioner~~ director; administrative procedures; deposit of money penalties.

§29-22E-3. Effect of transfer on existing rules, licenses and permits.

(a) All rules promulgated by the Tax Commissioner and in effect on the effective date of this article shall remain in effect until superseded, or except as amended or repealed, in accordance with the provisions of this article.
(b) Any license or permit issued by the Tax Commissioner under the provisions of this article prior to July 1, 2009, which has not expired or which had not been suspended or revoked remain valid until expiration and is eligible for renewal.
§29-22E-4. Definitions.
For purposes of this article, unless specified otherwise:
(a) "Charitable or public service activity or endeavor" means any bona fide activity or endeavor which directly benefits a number of people by:
(1) Contributing to educational or religious purposes; or
(2) Relieving them from disease, distress, suffering, constraint or the effects of poverty; or
(3) Increasing their comprehension of and devotion to the principles upon which this nation was founded and to the principles of good citizenship; or
(4) Making them aware of or educating them about issues of public concern so long as the activity or endeavor is not aimed at supporting or participating in the campaign of any candidate for public office; or
(5) By lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which government would normally render to the people; or
(6) Providing or supporting nonprofit community activities for youth, senior citizens or the disabled; or
(7) Providing or supporting nonprofit cultural or artistic activities; or
(8) Providing or supporting any political party executive committee.
(b) "Charitable or public service organization" means a bona fide, not for profit, tax-exempt, benevolent, educational, philanthropic, humane, patriotic, civic, religious, fraternal or eleemosynary incorporated or unincorporated association or organization; or a volunteer fire department, rescue unit or other similar volunteer community service organization or association; but does not include any nonprofit association or organization, whether incorporated or not, which is organized primarily for the purposes of influencing legislation or supporting or promoting the campaign of any single candidate for public office.
(c) "Commissioner" or "Tax Commissioner" means the state Tax Commissioner.
(d) "Concession" means any stand, booth, cart, counter or other facility, whether stationary or movable, where beverages, both alcoholic and nonalcoholic, food, snacks, cigarettes or other tobacco products, newspapers, souvenirs or any other items are sold to patrons by an individual operating the facility. Notwithstanding anything contained in subdivision (2), subsection (a), section twelve, article seven, chapter sixty of this code to the contrary, "concession" includes beverages which are regulated by and shall be subject to the provisions of chapter sixty of this code.
(e) "Conduct" means to direct the actual holding of a raffle by activities including, but not limited to, handing out tickets, collecting money, drawing the winning numbers or names, announcing the winning numbers or names, posting the winning numbers or names, verifying winners and awarding prizes.
(f) "Expend net proceeds for charitable or public service purposes" means to devote the net proceeds of a raffle occasion or occasions to a qualified recipient organization or as otherwise provided by this article and approved by the director pursuant to section sixteen of this article.
(g) "Director" means Director of the Gaming and Racing Control Agency.
(h) "Gross proceeds" means all moneys collected or received from the conduct of a raffle or raffles at all raffle occasions held by a licensee during a license period; this term ~~shall~~ may not be deemed to include any moneys collected or received from the sale of concessions at raffle occasions.
(i) "Joint raffle occasion" means a single gathering or session at which a series of one or more successive raffles is conducted by two or more licensees.
(j) "Licensee" means any organization or association granted an annual or limited occasion license pursuant to the provisions of this article.
(k) "Net proceeds" means all moneys collected or received from the conduct of raffle or raffles at occasions held by a licensee during a license period after payment of the raffle expenses authorized by sections thirteen, fifteen and sixteen of this article; this term may not be deemed to include moneys collected or received from the sale of concessions at raffle occasions.
(l) "Person" means any individual, association, society, incorporated or unincorporated organization, firm, partnership or other nongovernmental entity or institution.
(m) "Patron" means any individual who attends a raffle occasion other than an individual who is participating in the conduct of the occasion or in the operation of any concession, whether or not the individual is charged an entrance fee or participates in any raffle.
(n) "Qualified recipient organization" means any bona fide, not for profit, tax-exempt, as defined in subdivision(q) of this section, incorporated or unincorporated association or organization which is organized and functions exclusively to directly benefit a number of people as provided in subparagraphs (1) through (7), subdivision (a) of this section. "Qualified recipient organization" includes, without limitation, any licensee which is organized and functions exclusively as provided in this subdivision.
(o) "Raffle" means a game involving the selling of tickets to participate in the game entitling the holder or holders to a chance on a prize or prizes.
(p) "Raffle occasion" or "occasion" means a single gathering or session at which a series of one or more successive raffles is conducted by a single licensee.
(q) "Tax-exempt association or organization" means an association or organization which is, and has received from the "Internal Revenue Service" a determination letter that is currently in effect stating that the organization is exempt from federal income taxation under subsection 501(a) and described in subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), 501(c)(19) or 501(d) of the Internal Revenue Code of 1986, as amended; or is exempt from income taxes under subsection 527(a) of ~~said~~ the code.

§29-22E-5. Authorizing the conduct of certain raffles without a license.

Notwithstanding any other provisions of this article to the contrary, any charitable or public service organization which has been in existence in this state for at least one year is authorized to conduct raffles without compliance with the licensing provisions of this article: Provided, That any prize awarded in any single raffle at a raffle occasion may not exceed in value the sum of $4,000: Provided, however, That the cumulative gross proceeds derived from the conduct of raffle occasions by any charitable or public service organization may not exceed $15,000 during any calendar year: Provided further, That any organization may not be subject to the record keeping provisions of section seventeen of this article but shall maintain a separate accounting for the operation of raffles. All records required by this section shall be maintained for at least three calendar years and shall be available for reasonable inspection by the director.

§29-22E-6. Who may hold raffles; application for license; licenses not transferable.

(a) Except as provided in section five of this article, persons as defined in section four of this article, who are residents of this state and who are active members of any charitable or public service organization which has been in existence in this state for at least two years prior to filing an application for a raffle license issued pursuant to section seven or eight of this article may hold raffle occasions in accordance with the provisions of this article during the time it holds a valid license.
(b) Application for a raffle license shall be made to the director and shall be on a form supplied by him or her. The application shall contain the information required by section ten of this article and any other information which the director considers necessary. No raffle may be held and no tickets may be sold pursuant to this article until the raffle application has been approved by the director and the license has been received by the applicant: Provided, That no raffle occasion may be held and no raffle tickets may be sold until a sixty day filing period, which is that time period between the receipt of that application by the director and the first raffle occasion, has expired: Provided, however, That the director shall send the applicant its license within five days after the application is approved. If the sixty day filing period has expired and the application has not been denied and the raffle license has not been received by the applicant, the applicant may consider the application approved and begin to sell tickets for the raffle or hold the raffle occasion. The director shall send the applicant its license within five days after the expiration of the filing period if the application has not been otherwise denied.
(c) No raffle license issued pursuant to this article may be transferred.
§29-22E-7. Annual license; conditions on holding of raffles.
A charitable or public service organization or any of its auxiliaries or other organizations otherwise affiliated with it, may apply for an annual license. Only one license per year in the aggregate may be granted to a charitable or public service organization and all of its auxiliaries or other associations or organizations otherwise affiliated with it: Provided, That for purposes of this section, the various branches, chapters or lodges of any national association or organization or local churches of a nationally organized church are not considered affiliates or auxiliaries of each other. The director shall by rule provide for the manner for determining to which organization, whether the parent organization, an affiliate or an auxiliary, the one license allowed under this section is granted. An annual license is valid for one year from the date of issuance. No organizations may hold a joint raffle occasion under any annual licenses.
A licensee shall display its annual raffle license conspicuously at the location where the raffle occasion is held.
§29-22E-8. Limited occasion license; conditions on holding of raffles.

Two or more organizations may hold a joint raffle occasion provided each participating organization has been granted a limited occasion raffle license for the jointly held occasion: Provided, That no licensee which holds an annual license may obtain more than one limited occasion license.
A limited occasion license is valid only for the time period specified in the application and entitles only the licensee to hold two raffle occasions during the time period so specified which may not exceed six months from the date of issuance of the limited occasion license.
Subject to the limitations set forth in this section for charitable or public service organization having an annual license, a charitable or public service organization and all of its auxiliaries or other associations or organizations otherwise affiliated with it, may be granted only three limited occasion licenses per year in the aggregate. For purposes of this section the various branches, chapters or lodges of any national association or organization or local churches of a nationally organized church are not considered affiliates or auxiliaries of each other. The director shall by rule provide the manner for determining to which organization, whether the parent organization, an affiliate or an auxiliary, the three licenses allowed under this section are granted.
A licensee shall display its limited occasion license conspicuously at the location where the raffle occasion is held.
§29-22E-9. License fee and exemption from taxes.
(a) A license fee shall be paid to the director for annual licenses in the amount of $500. A license fee shall be paid to the director for a limited occasion license in the amount of $50. All revenue from the license fee shall be deposited in the nonappropriated special account created in section eight-a, article twenty-two, chapter twenty-nine which shall be used by the Gaming and Racing Control Agency to pay salaries and other expenses. The expenditures may include, but may not be limited to, employee compensation, equipment, computer software, office supplies, rent and travel expenses. On the last day of each fiscal year, unencumbered and undesignated funds from deposits of charitable bingo fees imposed by article twenty-two-d, charitable raffle fees imposed by article twenty-two-e, and charitable raffle boards and games fees imposed by article twenty-two-f of this chapter that remain in the nonappropriated special account in excess of $250,000 shall be transferred to the General Revenue Fund. The license fee imposed by this section is in lieu of all other license or franchise taxes or fees of this state and no county or municipality or other political subdivision of this state is empowered to impose a license or franchise tax or fee on any raffle or raffle occasion.
(b) The gross proceeds derived from the conduct of a raffle occasion are exempt from state and local business and occupation taxes, income taxes, excise taxes and all special taxes. Any charitable or public service organization conducting a raffle occasion pursuant to the provisions of this article is exempt from payment of consumers sales and service taxes, use taxes and all other taxes on all purchases for use or consumption in the conduct of a raffle occasion and is exempt from collecting consumers sales taxes on any admission fees and sales of raffle tickets.
§29-22E-10. Information required in application.
An application for a raffle license shall include the following information:
(a) Name of the applicant and name and headquarter's address of any state or national organization of which the applicant is a local branch or lodge;
(b) The address and telephone number of the applicant organization, if any, and if the applicant organization has no telephone, then the address and telephone number of the person applying on behalf of the organization shall be supplied;
(c) For a limited occasion license, the names and addresses of two or more bona fide active members of the applicant organization who are charged with overall responsibility for the applicant's raffle operations, at least one of whom shall be present when the winning numbers or names are drawn, announced, posted and verified and the prizes are awarded; and the names and addresses of the highest elected officer of the licensee and his officially appointed designee, one of whom shall be present when the winning numbers or names are drawn, announced, posted and verified and the prizes are awarded; for an annual license, the names, addresses and telephone numbers of three or more bona fide active members of the applicant organization who are charged with overall responsibility for the applicant's raffle operations, at least one of whom shall be present when the winning numbers or names are drawn, announced, posted and verified and the prizes are awarded; and the names and addresses and telephone numbers of the highest elected officer of the licensee and his officially appointed designee, one of whom shall be present when the winning numbers and names are drawn, announced posted and verified and the prizes are awarded;
(d) The address or location of the premises where licensed raffles are to be held;
(e) Information as may be required by the director to satisfy him that the applicant meets the requirements of:
(1) Being a charitable or public service organization as defined by this article; and
(2) Being in existence in this state for at least one year prior to filing an application for a raffle license.
(f) Designate the date or dates and the time or times when the raffle occasions will be held;
(g) The name of the owner of the premises where the raffle occasions are to be held and a copy of all rental agreements involved if the premises are leased or subleased by the applicant from the owner or lessee;
(h) State whether the applicant has ever had a previous application for any raffle license refused, or whether any previous raffle license has been revoked or suspended;
(i) State the charitable or public service purpose or purposes for which the raffle proceeds will be expended;
(j) Provide statements to the effect that the individuals specified in subdivision (c) of this section and the officers of the applicant understand:
(1) That it is a violation of this article to allow any persons other than those authorized by this article to conduct the raffle or concessions operated in conjunction therewith;
(2) That it is required to file the reports and keep the records as provided by this article; and
(3) That it is a crime to violate the provisions of this article and, that a violation of the provisions may result in suspension or revocation of the raffle license and denial of applications for subsequent raffle licenses;
(k) Provide a sworn statement by an authorized representative of the applicant that the information contained in the application is true to the best of his knowledge;
(l) Provide a list and description of estimated expenses to be incurred in connection with the holding of the raffle occasions and any concessions operated and the name and address of each payee.
If a concession is operated in accordance with the provisions of section fifteen of this article, a copy of any written agreement or an explanation of any oral agreement providing for any type of remuneration to be received by the concession operator shall be attached to the application;
(m) A list of the names and addresses of all officers and members of the board of directors, governors or trustees, if any, of the applicant organizations; and
(n) Any other necessary and reasonable information which the director may require.
§29-22E-11. Amendment of license.
If circumstances beyond the control of the licensee organization prohibit it from holding any raffle occasion in accordance with the information provided by it in its license application form, the licensee organization may request approval by the director to: modify the terms and conditions of its license.
§29-22E-12. Licensee rules and regulations.
Each licensee may adopt regulations, not inconsistent with or in violation of the provisions of this article or rules promulgated hereunder, to govern the conduct of raffle occasions.
Any regulations adopted by the licensee shall be made available for inspection at all raffle occasions held. Any regulations adopted are a part of the records required to be kept by section seventeen of this article.
§29-22E-13. Limits on prizes awarded -- General provisions.
Prizes may be money, real or personal property or merchandise other than beer, wine, spirits or alcoholic liquor as defined in section five, article one, chapter sixty of this code. If the prizes are real or personal property or merchandise, the value assigned to them is their fair market value at the time of acquisition for the raffle or at the time of purchase.
§29-22E-14. Compensation.
(a) A licensee may pay a salary, the minimum of which is the federal minimum wage and the maximum of which is not more than 120% of the state minimum wage to operators of charitable raffle games who are either:
(1) Active members of the licensee organization and who have been active members in good standing for at least two years prior to the date of filing of the application for a charitable raffle license or the most recent filing of an application for renewal of the license; or
(2) Employees of the licensee organization or its authorized auxiliary organization who are:
(A) Residents of this state;
(B) Residents of a state bordering this state if the county of his or her residence is contiguous to the county in this state in which the raffle operation is conducted; or
(C) Residents of a bordering state who reside within thirty-five miles of the county in which the raffle operation is conducted.
(b) If the licensee's gross receipts from raffle occasions equal or exceed $100,000 for the licensee's most recently filed annual financial report, a salary may be paid to not more than eight operators.
(c) If the licensee's gross receipts from charitable raffle occasions are less than $100,000, but equal or exceed $50,000 for the licensee's most recently filed annual financial report, a salary may be paid to not more than five operators.
(d) If the licensee's gross receipts from charitable raffle occasions are less than $50,000 for the licensee's most recently filed annual financial report, a salary may be paid to no more than three operators.
(e) In the case of a licensee lawfully holding a charitable bingo occasion simultaneously with a charitable raffle occasion, the number of paid charitable raffle operator employees allowed under this limitation for charitable raffle licensees is in addition to the number of charitable bingo operator employees allowed under section seventeen, article twenty-two-d of this chapter. Licensees holding simultaneous occasions shall pay bingo operators from the proceeds of bingo operations and shall pay raffle operators from the proceeds of raffle operations and the charitable bingo fund and the charitable raffle fund and payments from the funds may not be commingled.
(f) For purposes of the limitations set forth in this section, the term "operator" or "bingo operator" or "raffle operator" do not include concession stand workers. Wages paid to concession workers may not exceed more than 120% of the state minimum wage.
§29-22E-15. Compensation for concession operator; concession operated by charitable or public service organization.

A licensee may allow any person to operate concessions in conjunction with raffle occasions, and to be compensated for the operation, in accordance with the following provisions:
(a) The licensee organization is one which meets or holds functions other than raffle occasions on a regular basis;
(b) The concession to be operated at the raffle occasion is operated regularly at the meetings or functions;
(c) The person which operates the concession at the regular meetings or functions is the same which operates the concession at the raffle occasion; and
(d) The terms of the agreement under which the person operates the concession at the raffle occasion are the same terms under which the concession is operated at the regular meetings or functions: Provided, That a copy of the agreement is filed at the time the application is made and any changes are filed within ten days of being made.
In addition, any charitable or public service organization as defined by section four of this article may operate a concession at any raffle occasions held by a licensee: Provided, That the net proceeds it receives from that concession are used solely for the charitable or public service purposes of that organization.

§29-22E-16. Payment of reasonable expenses from proceeds; net proceeds disbursement.

(a) The reasonable, necessary and actual expenses incurred in connection with the conduct of raffle occasions, not to exceed 25% of the gross proceeds collected during a license period, may be paid out of the gross proceeds of the conduct of raffle, including, but not limited to:
(1) Rent paid for the use of the premises: Provided, That a copy of the rental agreement was filed with the raffle license application with any modifications to the rental agreement to be filed within ten days of being made: Provided, however, That in no event may the rent paid for the use of any premises exceed the fair market value of rent for the premises;
(2) The cost of custodial services;
(3) The cost to the licensee organization for equipment and supplies used to conduct the raffle occasion;
(4) The cost to the licensee organization for advertising the raffle occasion;
(5) The cost of hiring security personnel, licensed pursuant to the provisions of article eighteen, chapter thirty of this code; and
(6) The cost of providing child care services to the raffle patrons: Provided, That any proceeds received from the provision of child care services shall be handled the same as raffle proceeds.
(b) The actual cost to the licensee for prizes, not to exceed the amounts as specified in section eleven of this article, may be paid out of the gross proceeds of the conduct of raffle.
(c) The cost of any refreshments, souvenirs or any other item sold or otherwise provided through any concession to the patrons may not be paid for out of the gross proceeds from the raffle occasion. The licensee shall expend all net raffle proceeds and any interest earned on the net raffle proceeds for the charitable or public service purposes stated in the application within one year after the expiration of the license under which the raffle occasions were conducted. A licensee which does not qualify as a qualified recipient organization may apply to the director at the time it applies for a raffle license or as provided in subsection (e) of this section for permission to apply any or all of its net proceeds to directly support a charitable or public service activity or endeavor which it sponsors.
(d) No gross proceeds from any raffle operation may be devoted or in any manner used by any licensee or qualified recipient organization for the construction, acquisition, or improvement, of real or personal property except that which is used exclusively for one or more charitable or public service purposes or as provided in subdivision (3), subsection (a) of this section.
(e) The director has the authority to disapprove any contract for sale of goods or services to any charitable raffle licensee for use in or with relation to any charitable raffle operation or occasion, or any lease of real or tangible personal property to any charitable raffle licensee for use in or with relation to any charitable raffle operation or occasion, if the contract or lease is unreasonable or not representative of fair market value. Disapproved contracts or leases shall be considered to be in contravention of this article, and are void. Any attempt by any charitable raffle licensee to engage in transactions under the terms of any disapproved lease or contract is grounds for revocation or suspension of the charitable raffle license and for refusal by the director to renew the charitable raffle license.
(f) Any licensee which, in good faith, finds itself unable to comply with the requirements of the subsections (a) through (e) of this section shall apply to the director for permission to expend its net proceeds for one or more charitable or public service purposes other than that stated in its license application or for permission to expend its net proceeds later than the one-year time period specified in this section. The application shall be on a form furnished by the director and shall include the particulars of the requested changes and the reasons for the changes. The application shall be filed no later than sixty days before the end of the one-year period specified in this section. In the case of an application to extend the time in which the net proceeds are to be expended for a charitable or public service purpose, the licensee shall file periodic reports with the director as the director directs until the proceeds are expended.
§29-22E-17. Records; director audit.
Any licensee which holds a raffle occasion as provided by this article shall maintain a separate account and separate book-keeping procedure for its raffle operations: Provided, That nothing in this article restricts a licensee from transferring moneys in the account from a raffle occasion to an account created under section seventeen, article twenty-two-d of this chapter in an amount not to exceed the actual loss of the bingo occasion receiving the transfer: Provided, however, That money transferred shall be withdrawn only by checks having preprinted consecutive numbers and made payable to the account created under section seventeen, article twenty-two-d of this chapter. All records required by this article shall be maintained for at least three years and shall be open to the director for reasonable inspection. Whenever the director has reasonable cause to believe a licensee has violated any of the provisions of this article, he may perform or cause to be performed an audit of the licensee's books and records.
§29-22E-18. Advertising.
A licensee may advertise its raffle occasions in a manner reasonably necessary to promote the occasion.
§29-22E-19. Fraud; penalties.
In addition to any other offense set forth in this code, any person who or licensee which knowingly conducts or participates in a fraudulently or deceptively conducted raffle with intent to defraud is guilty of a felony, and, upon conviction thereof, shall be fined not less than $500 nor more than $10,000, or imprisoned in the penitentiary not less than one, nor more than five years, or both fined and imprisoned.
§29-22E-20. Obtaining license fraudulently; penalty.
In addition to any other offense set forth in this code, any person who or licensee which knowingly obtains or assists another in obtaining a raffle license under false, deceptive or fraudulent pretenses is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $500 nor more than $10,000.
§29-22E-21. Violation of provisions; penalties.
Any person who knowingly violates any provisions of this article, other than the provisions of sections nineteen and twenty is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $100 nor more than $1,000; and, upon a second or subsequent conviction thereof, shall be fined not less than $100 nor more than $1,000 or imprisoned not more than one year or both fined and imprisoned.
§29-22E-22. Administration; rules and regulations.
(a) The director shall promulgate rules to administer the provisions of this article in accordance with the provisions of article three, chapter twenty-nine-a of this code.
(b) The ~~commissioner~~ director shall deny an application for a license or modification thereof if he finds that the issuance thereof would be in violation of the provisions of this article.
(c) The director may revoke, suspend or refuse to renew a license if the licensee or any member of a licensee organization has been convicted pursuant to sections nineteen and twenty of this article and the director finds that it would be in the public interest to do so; or if the licensee has violated any of the provisions of this article: Provided, That before revoking or suspending a license issued under the authority of this article, the director shall give at least ten days, three days for a limited occasion license, notice to the licensee. Notice shall be in writing, state the reason for revocation or suspension and designate a time and place when the licensee may show cause why the license should not be revoked or suspended. The notice required by this section shall be by personal or substituted service, in accordance with the West Virginia rules of civil procedure for trial courts of record, on the person who applied for the license on behalf of the licensee. The licensee may, at the time designated for the hearing, present evidence in its behalf and be represented by counsel. A decision of the director revoking or suspending a license is subject to judicial review upon the appeal of a licensee. The decision shall be subject to judicial review in the same manner as other decisions of the director.
(d) The director may suspend, revoke or refuse to renew any license issued hereunder for a material failure to maintain the records or file the reports required by this article if the director finds that the failure will substantially impair the director's ability to administer the provisions of this article with regard to the licensee.
(e) The director shall promulgate rules necessary to the administration of this article.
(f) The provisions of article five, chapter twenty-nine-a of this code apply to the denial, revocation, suspension of or refusal to renew a license.
(g) The burden of proof in any administrative or court proceeding is on the applicant to show cause why a raffle license should be issued or renewed and on the licensee to show cause why its license should not be revoked or suspended.
(h) Notwithstanding any other provision of this article, the director may issue an emergency order suspending a raffle license under the following circumstances and in the following manner:
(1) An emergency order may be issued only when the director believes that:
(i) There has been a criminal violation of this article;
(ii) The action is necessary to prevent a criminal violation of this article; or
(iii) The action is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare.
(2) The emergency order shall set forth the grounds upon which it is issued, including a statement of facts constituting the alleged emergency necessitating the action. This order shall be served by personal or substituted service on the licensee or the person who applied for the license on behalf of the licensee.
(3) The emergency order is effective immediately upon issuance and service upon the licensee.
(4) Within five days after issuance of an emergency order, the director shall set a time and place for a hearing wherein the licensee may appear and show cause why its license should not be revoked.
§29-22E-23. Filing of reports.
Each licensee holding an annual, limited or state fair license shall file with the director a financial report summarizing its raffle operations within thirty days after the expiration date of the license. The time period covered by an annual report is the full license year or, at the election of a licensee receiving state or federal funding, the most recently ended state or federal fiscal year.
The reports required by this section shall contain the name, address and social security number of any individual who received during the course of a raffle occasion prizes the aggregate value of which exceeded $100, and other information required by the director: Provided, That any licensee failing to file the report when due is liable for a penalty of $25 for each month or fraction of a month during which the failure continues, the penalty not to exceed $100: Provided, however, That annual financial reports must contain either a compilation or review of the financial report by a certified or licensed public accountant, or may be audited by a certified or licensed public accountant, if a licensee's gross receipts exceed $50,000.
§29-22E-24. Filing of copy of license; application open to public inspection.

Whenever a license is granted pursuant to this article, the director shall cause a copy of the license to be filed and recorded with the clerk of the county commission of the county in which the raffle occasions are to be held. A copy of the application shall be made available for public inspection in the office of the director.
§29-22E-25. County option election.
A county commission is authorized to call a local option election for the purpose of determining the will of the voters as to whether the provisions of this article shall continue in effect in the county.
A petition for a local option election shall be in the form specified in this section and shall be signed by qualified voters residing within county equal to at least 10% of the individuals qualified to vote within the county at the last general election. The petition may be in any number of counterparts and is sufficient if substantially in the following form:
PETITION ON LOCAL OPTION ELECTION RESPECTING THE CONDUCT OF RAFFLES FOR CHARITABLE PURPOSES IN _____________ COUNTY, WEST VIRGINIA
Each of the undersigned certifies that he or she is an individual residing in _____________ County, West Virginia, and is duly qualified to vote in that county under the laws of the state, and that his or her name, address and the date of signing this petition are correctly set forth below.
The undersigned petition the county commission to call and hold a local option election at (1) a special or (2) the next primary, general or special election (the petition shall specify (1) or (2)) upon the following question: Shall the provisions of article twenty-two-e, chapter twenty-nine of the code of West Virginia, 1931, as amended, continue in effect in _______________ County, West Virginia?
Name Address Date
__________________ _______________________ _____________
(Each individual signing must specify either his post-office address or his street number.)
Upon the filing of a petition for a local option election in accordance with the provisions of this section, the county commission shall enter an order calling a local option election as specified in the petition. The county commission shall give notice of the local option election by publication thereof 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. The notice shall be so published within fourteen consecutive days next preceding the election.
Each individual qualified to vote in the county at any primary, general or special election, shall likewise be qualified to vote at the local option election. The election officers appointed and qualified to serve at any primary, general or special election shall conduct the local option election. If the local option election is to be held at the same time as a primary, general or other special election, it shall be held in connection with and as a part of that primary, general or special election. The ballots in the local option election shall be counted and returns made by the election officers and the results certified by the directors of election to the county commission which shall canvass the ballots, all in accordance with the laws of the state of West Virginia relating to primary and general elections insofar as the same are applicable. The county commission shall, without delay, canvass the ballots cast at ~~said~~ the local option election and certify the results.
§29-22E-26. Prohibited acts by convicted persons.
Any person convicted of any felony, or a misdemeanor for a gambling offense, or of a violation of any provision of article twenty-two-d of this chapter, is prohibited from directly or indirectly obtaining a raffle license, conducting a raffle game, operating a concession, or leasing or providing to a licensee any premises where raffle occasions may be held, within ten years from the conviction.
§29-22E-27. Restrictions on use of raffle equipment.
A licensee may use only raffle equipment which it owns or which it borrows without compensation, or leases for a reasonable and customary amount, from another licensee.
§29-22E-28. Proceeds of state fair.
The Legislature declares that the net proceeds of any raffle game which accrue to the West Virginia state fair are considered used for charitable or public service purposes as defined in section four of this article. Any proceeds allowed by the state fair board to be paid to or retained by persons who conduct raffle occasions at the state fair are deemed to be expenses incurred by the state fair board.
§29-22E-29. State fair raffle license; rules and regulations.
The West Virginia state fair board may apply annually to the director for a state fair raffle license to provide for the conduct of raffle occasions at the state fair. The license shall permit the state fair board to have one or more persons conduct raffle occasions at the state fair who have conducted raffle occasions on a regular basis for a least one year prior to the date of the state fair board's application. A license fee of $500 shall be paid to the director for the state fair raffle license. The provisions of sections fourteen, fifteen, sixteen and twenty-seven of this article do not apply to a state fair raffle license. No state fair raffle license may be issued unless the application includes a copy of any lease or agreement entered into between the state fair board and the persons who are to conduct raffle occasions at the state fair. The state fair board may adopt regulations, not inconsistent with or in violation of the provisions of this article, to govern the holding of raffle occasions at the state fair.

§29-22E-30. Additional remedies for the director; administrative procedures; deposit of money penalties.

(a) Additional remedies. -- Notwithstanding any provision of this article to the contrary, the director may:
(1) Revoke or refuse to renew any license issued under this article for any material violation of the provisions of this article or legislative rules of the director promulgated for this article;
(2) Suspend the license of any licensee for the period of time the director deems appropriate, not to be less than one week nor more than twelve months, for any material violation of the provisions of this article or legislative rule of the director promulgated for this article;
(3) Place a licensee on probation for not less than six months nor more than five years: Provided, That in the event a licensee is placed on probation, as a condition of the probation, the licensee shall pay to the director a probation supervision fee in an amount equal to two percent of the gross proceeds derived by the licensee from the conduct of raffle occasions during the period of the suspension, but, in no event, may the probation supervision fee be less than $2,000. All probation supervision fee revenue shall be placed in a special account and used by the director, after appropriation by the Legislature, to offset the expenses and costs incurred by the tax division to supervise the licensee;
(4) Require a licensee to replace any officer who knew or should have known of a material violation of the provisions of this article or legislative rules of the director promulgated for this article;
(5) Require a licensee to prohibit one or more members, supporters, volunteers or employees of the licensee involved in acts of material violation of the provisions of this article or legislative rules of the director promulgated for this article, from all future raffle occasions held under the license, or for the period of time specified by the director;
(6) Impose a civil money penalty in an amount not less than $100 nor more than two times the annual gross proceeds derived by the licensee, for each material violation of the provisions of this article or legislative rules of the director: Provided, That in setting any monetary penalty for a first offense, the director shall take into consideration the ability of the licensee to continue to exist and operate. For each material violation which is a second or subsequent offense, the amount of the civil penalty that may be imposed may not be less than $500 and may not exceed two times the annual gross proceeds of the licensee. Application of this subdivision and the amount of civil money penalty levied shall be determined in accordance with a legislative rule promulgated by the director pursuant to article three, chapter twenty-nine-a of this code. Any licensee aggrieved by the amount of the civil penalty may surrender its license, or, after exhausting all administrative remedies, have the matter reviewed in the circuit court of the county where the offense giving rise to the civil penalty occurred; or
(7) Order any one or more, or any combination, of the penalties provided for in subdivisions (1) through (6) of this subsection: Provided, That no sanctions or other remedy shall be imposed under this article on a licensee which is exempt or qualified to be exempt from federal income taxation under subsection 501(c)(3)or 501(c)(4)of the Internal Revenue Code of 1986, as amended, but does not have bona fide members, due to failure to operate raffle occasions with members if the occasions are or were operated by residents of this state who have been employed by the licensee or been meaningfully associated with the licensee for one or more years before the date of the licensee's application for a license under this article, or its last application for renewal of a license under this article.
(b) Administrative procedures.
(1) An order issued under this section shall be served by certified mail or in the manner provided in rule 4(d) of the West Virginia rules of civil procedure for trial courts of record, as amended.
(2) A licensee may appeal an order of the director issued under this section by filing a written protest with the director, either in person or by certified mail, within twenty days after the licensee is served with a copy of the order.
(3) When a written protest is filed timely, the provisions of article five, chapter twenty-nine-a of this code shall apply. The director may by procedural rule specify the form and content of a written protest.
(4) The burden of proof in any administrative or court proceeding is on the licensee to show cause why the order of the director under this section should be modified, in whole or in part, or set aside.
(c) Deposit of money penalties. -- All fines, money penalties and fees imposed pursuant to this section, except the probation supervision fee imposed by subdivision (3), subsection (a) of this section, shall be deposited into the general revenue fund of this state.
ARTICLE 22F. CHARITABLE RAFFLE BOARDS AND GAMES.
§29-22F-1. Short title.
This article shall be known as and may be cited as the "Charitable Raffle Boards and Games Act."
§29-22F-2. Powers and duties transferred to Gaming Control Commission.
Effective July 1, 2009, the powers and duties of the Tax Commissioner under this article, including, but not limited to, the Tax Commissioner's authority to investigate and audit for compliance with this article are transferred to the Director of the Gaming and Racing Control Agency.
§29-22F-3. Effect of transfer on existing rules, licenses and permits.
(a) All rules promulgated by the Tax Commissioner and in effect on the effective date of this article shall remain in effect until superseded, or except as amended or repealed, in accordance with the provisions of this article.
(b) Any license or permit issued by the Tax Commissioner under the provisions of this article prior to July 1, 2009, which has not expired and which had not been suspended or revoked shall remain valid until expiration and is eligible for renewal.
§29-22F-4. Definitions.
For purposes of this article, unless specified otherwise:
(a) "Charitable raffle board" or "charitable raffle game" means:
(1) A board or other device that has many folded printed slips to be pulled from the board or otherwise distributed without a board on payment of a nominal sum in an effort to obtain a slip or chance that entitles the player to a designated prize;
(2) A series of paper cards with perforated break-open tabs, a face value of which is covered or otherwise hidden from view to conceal one or more numbers, letters or symbols, which, on payment of a nominal sum, entitles the player to obtain a chance to a designated prize; or
(3) Other similar game which may be defined by the director by legislative rule.
(b) "Commissioner" or "Tax Commissioner" means Tax Commissioner of the State of West Virginia.
(c) "Director" means Director of the Gaming and Racing Control Agency.
(d) "Person" means any individual, association, society, incorporated or unincorporated organization, firm, partnership or other nongovernmental entity or institution.
(e) "Retail value" means the actual consideration paid to the wholesaler by the retailer for any raffle boards or games.
(f)"Retailer" means every person engaged in the business of making retail sales of raffle chances except a charitable or public service organization authorized to conduct raffles pursuant to section three, article twenty-one of this chapter.
(g) "Sale" means the transfer of the ownership of tangible personal property for a consideration.
(h) "Verification" means a unique manufacture identifiable serial number which is required to be printed on each ticket in a charitable raffle board or charitable raffle game or the other form of identification as may be prescribed by the director upon a showing of undue hardship by the taxpayer: Provided, That the other form of identification shall be prescribed by rule in accordance with the provisions of article three, chapter twenty-nine-a of this code.
(i) "Wholesaler" or "distributor" means any person or entity engaged in the wholesale distribution of charitable raffle boards or games or similar boards or devices, as defined by the director, and licensed under the provisions of this article, to distribute the devices to charitable raffle boards or games retailers as defined in this article. It also includes anyone who is engaged in the manufacturing, packaging, preparing or repackaging of charitable raffle boards or games for distribution in this state: Provided, That no license taxes or other fees provided in this section may be charged to any newspaper or other printing or duplicating operation not regularly engaged in the business of manufacturing, packaging, preparing or repackaging charitable raffle boards or games where the gross sales of the printing or duplicating operation from such activity does not exceed $7,500 per calendar year and who is donating the items or services to a nonprofit entity without compensation may not be considered a "wholesaler" or "distributor" under this article.
§29-22F-5. Fees.
Wholesalers or distributors of charitable raffle boards and games to retailers shall be licensed and a license fee in the amount of $500 shall be paid to the director by each wholesaler or distributor for an annual license. Wholesalers and distributors shall also pay a fee of $0.20 on each dollar of retail value of each charitable raffle board or game sold to a retailer. This fee shall be in addition to any tax imposed pursuant to the provisions of article fifteen, chapter eleven of this code. This fee shall be deposited in the nonappropriated special account created in section eight-a, article twenty-two, of this chapter which shall be used by the Gaming and Racing Control Agency to pay salaries and other expenses. The expenditures may include, but may not be limited to, employee compensation, equipment, computer software, office supplies, rent and travel expenses. On the last day of each fiscal year, unencumbered and undesignated funds from deposits of charitable bingo fees imposed by article twenty-two-d, charitable raffle fees imposed by article twenty-two-e, and charitable raffle boards and games fees imposed by article twenty-two-f of this chapter that remain in the nonappropriated special account in excess of $250,000 shall be transferred to the General Revenue Fund.

§29-22F-6. No fee on charitable raffle boards and games by municipalities or other governmental subdivisions.

No municipality or governmental subdivision may levy any excise or other tax or fee requiring charitable raffle boards or games to be stamped, or requiring licenses for sale thereof, other than licenses which may be imposed as a result of licenses provided for in article twelve, chapter eleven of this code.
§29-22F-7. Surety bonds required; release of surety; new bond.
The director may require wholesalers and distributors to file continuous surety bond in an amount to be fixed by the director not less than $1,000. Upon completion of the filing of a surety bond an annual notice of renewal, only, shall be required thereafter. The surety must be authorized to engage in business within this state. The bond shall be conditioned upon faithfully complying with the provisions of this article including the filing of the returns and payment of all fees prescribed by this article.
Any surety on a bond furnished hereunder shall be released and discharged from all liability accruing on the bond after the expiration of sixty days from the date the surety shall have lodged, by certified mail, with the director a written request to be discharged. This may not relieve, release or discharge the surety from liability already accrued or which shall accrue before the expiration of the sixty day period. Whenever any surety shall seek release as herein provided, it shall be the duty of the wholesaler or distributor to supply the director with another bond.

§29-22F-8. Requirement of wholesalers and distributors to be licensed to do business in state; resident agent requirement.

(a) Any wholesaler or distributor supplying charitable raffle boards or games to retailers in this state shall be registered to do business in this state pursuant to the provisions of article twelve, chapter eleven of this code.
(b) Nonresidents otherwise complying with the provisions of this article may be licensed as wholesalers or distributors of charitable raffle boards or games upon designating to the director a resident agent upon whom notices, orders or other communications issued pursuant to this article may be served and upon whom process may be served.

§29-22F-9. How fee paid; reports required; due date; records to be kept; inspection of records and stocks; examination of witnesses, summons, etc.

The retail value fee imposed by section five of this article shall be paid by each licensed wholesaler or distributor to the director on or before the twentieth day of April, July, October and January for the preceding three calendar months. The measure of the fee on the retail value of charitable raffle boards or games shall be determined by multiplying the total amount of the retail value of all charitable raffle boards and games sold by a wholesaler or distributor to retailers during the the three-month period by 20%. The fee shall be in addition to any tax imposed pursuant to the provisions of article fifteen, chapter eleven of this code. All fees due and owing to the director by reason of this article, if paid after the due dates required by this section, shall be subject to the provisions of article ten, chapter eleven of this code. Each wholesaler or distributor shall provide with each quarterly payment of fees a return covering the business transacted in the previous three calendar months and providing the other information as the director may deem necessary for the ascertainment or assessment of the fee imposed by this article. ~~Such~~ The return shall be signed under penalty of perjury on the forms as the director may prescribe and the wholesaler or distributor shall at the time of filing remit all fees owed or due.
The returns prescribed herein are required, although a fee might not be due or no business transacted for the period covered by the return.
Each person required to file a return under this article shall make and keep the records as shall be prescribed by the director that are necessary to substantiate the returns required by this article, including, but not limited to, invoices, serial numbers or other verification, inventories, receipts, disbursements and sales, for a period of time not less than three years.
Unless otherwise permitted, in writing, by authority of the director, each delivery ticket or invoice for each purchase or sale of charitable raffle boards or games must be recorded upon a serially numbered invoice showing the name and address of the seller and the purchaser, the point of delivery, the date, quantity, serial number and price of the product sold and the fee must be set out separately, and other reasonable information as the director may require. These invoicing requirements also apply to cash sales and a person making the sales must maintain the records as may be reasonably necessary to substantiate his return.
The director shall have authority to inspect or examine the stock of charitable raffle boards and games kept in and upon the premises of any person where charitable raffle boards and games are placed, stored or sold, and he or she shall have authority to inspect or examine the records, books, papers and any equipment or records of manufacturers, wholesalers and distributors or any other person for the purpose of determining the quantity of charitable raffle boards and games acquired or disbursed to verify the truth and accuracy of any statement or return and to ascertain whether the fee imposed by this article has been properly paid.
To obtain the records, books and papers of a manufacturer, wholesaler, distributor or any other person and ascertaining the amount of fees and returns due under this article, the director shall have the power to examine witnesses under oath; and if the witness shall fail or refuse at the request of the director to grant access to the books, records or papers, the director shall certify the facts and names to the circuit court of the county having jurisdiction of the party and the court shall issue summons to the party to appear before the director, at a place designated within the jurisdiction of such court, on a day fixed, to be continued as the occasion may require for good cause shown and give the evidence and lay open for inspection the books and papers as may be required for the purpose of ascertaining the amount of fee and returns due, if any.

§29-22F-10. Penalty for failure to file return when no fee due; other offenses; penalties; seizures of illegal boards and games; disposition.

(a) In the case of any failure to make or file a return when no fee is due, as required by this article, on the date prescribed therefor, unless it be shown that the failure was due to reasonable cause and not due to willful neglect, there shall be collected a penalty of $25 for each month of the failure or fraction thereof.
(b) It shall be a misdemeanor, punishable pursuant to the terms of this article, if any person:
(1) Makes any false entry upon an invoice required to be made under the provisions of this article or with intent to evade the fee imposed by this article presents any ~~such~~ the false entry for the inspection of the director;
(2) Prevents or hinders the director from making a full inspection of any place where charitable raffle boards or games subject to the fee imposed by this state are sold or stored or prevents or hinders the full inspection of invoices, books, records or papers required to be kept under the provisions of this article;
(3) Sells any charitable raffle boards or games in this state on which the applicable fee or tax has not been paid;
(4) Being a retailer in this state, fails to produce on demand by the director invoices and verification of all charitable raffle boards and games purchased or received by him within three years prior to the demand, unless upon satisfactory proof it is shown that the nonproduction is due to providential or other causes beyond his control; or
(5) Being a retailer in this state, purchases or acquires charitable raffle boards and games from any person other than a wholesaler or distributor licensed under this article.
(c) Any person convicted of violating the provisions of subsection (b) of this section shall be confined in the county jail or regional jail for not more than one year or fined not less than $1,000 nor more than $10,000, or both.
(d) Any person who falsely or fraudulently makes, forges, alters or counterfeits any invoice or serial number prescribed by the provisions of this article, or its related rules and regulations, for the purpose of evading the fee imposed, shall be guilty of a felony, and, upon conviction thereof, shall be sentenced to pay a fine of not less than $5,000 nor more than $10,000 or imprisoned in the penitentiary for a term of not less than one year nor more than five years, or both.
(e) Whenever the director, or any of his deputies or employees authorized by him, or any peace officer of this state shall discover any charitable raffle boards or games subject to the fee as provided by this article and upon which the fee has not been paid as required, the charitable raffle boards and games shall be deemed to be contraband, and the director, or the deputy or employee or any peace officer of this state, is authorized and empowered forthwith to seize and take possession of the charitable raffle boards or games, without a warrant, and the charitable raffle boards and games shall be forfeited to the state, and the director shall retain the forfeited charitable raffle boards and games until they are no longer needed as evidence in any prosecution of the person from whom the raffle boards and games were seized. The director may within a reasonable time thereafter destroy the charitable raffle boards and games or sell the charitable raffle boards or games at public auction to the highest bidder: Provided, That ~~such~~ the seizure and destruction or public auction may not be deemed to relieve any person from fine or imprisonment for violation of any provisions of this article. The destruction may be made in any county the director deems most convenient and economical. All revenue from ~~said~~ the license fee shall be deposited in the section eight-a, article twenty-two of this chapter which shall be used by the Gaming and Racing Control Agency and used to support the investigatory activities provided for in the section.
(f) Magistrates shall have concurrent jurisdiction with any other courts having jurisdiction for the trial of all misdemeanors arising under this article.

§29-22F-11. Transportation of charitable raffle boards and games; forfeitures and sales of charitable raffle boards, charitable raffle games and equipment; criminal sanctions.

Every person who shall knowingly transport charitable raffle boards or games upon the public highways, waterways, airways, roads or streets of this state shall have in his actual possession invoices or delivery tickets for the charitable raffle boards or games which shall show the true name and the complete and exact address of the manufacturer, the true name and complete and exact address of the wholesaler or distributor who is the purchaser, the quantity and description of the charitable raffle boards and games transported and the true name and complete and exact address of the person who has or shall assume payment of the West Virginia state fee, or the tax, if any, of the state or foreign country at the point of ultimate destination. In the absence of the invoices, delivery tickets or bills of lading, the charitable raffle boards or games so transported, the vehicle or vessel in which the charitable raffle boards or games are being transported and any paraphernalia or devices used in connection with such, are declared to be contraband goods and may be seized by the director, his agents or employees or by any peace officer of the state without a warrant.
Any person who transports charitable raffle boards or games in violation of this section shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $300 nor more than $5,000, or imprisoned in the county jail not more than one year, or both.
Charitable raffle boards and games seized under this section shall be forthwith destroyed in the manner provided hereinafter in this section and the destruction may not relieve the owner of the destroyed charitable raffle boards and games of any action by the director for violations of this or any other sections of this article.
The director shall immediately, after any seizure made pursuant to this section, institute a proceeding for the confiscation thereof in the circuit court of the county in which the seizure is made. The court may proceed in a summary manner and may direct confiscation by the director: Provided, That any person claiming to be the holder of a security interest in any vehicle or vessel, the disposition of which is provided for above, may present his petition so alleging and be heard, and in the event it appears to the court that the property was unlawfully used by a person other than the claimant, and if the claimant acquired his security interest in good faith and without knowledge that the vehicle or vessel was going to be so used, the court shall waive forfeiture in favor of the claimant and order the vehicle or vessel returned to the claimant.
§29-22F-12. Administration; rulemaking; required verification.
(a) The director shall propose for promulgation, rules to administer the provisions of this article in accordance with the provisions of article three, chapter twenty-nine-a of this code. The director shall promulgate a rule which requires that every charitable raffle board or game shall each bear verification, as defined by section four of this article, printed by a manufacturer on each ticket in a game unless, upon application by the taxpayer showing undue hardship, the director consents to waive this requirement in favor of some other form of verification.
(b) The director shall deny an application for a license if he or she finds that the issuance would be in violation of the provisions of this article.
(c) The director may suspend, revoke or refuse to renew any license issued hereunder for a material failure to maintain the records or file the reports required by this article or administrative rule if the director finds that the failure will substantially impair the director's ability to administer the provisions of this article with regard to the licensee.
(d) The burden of proof in any administrative or court proceeding is on the applicant to show cause why a charitable raffle boards or games wholesaler's or distributor's license should be issued or renewed and on the licensee to show cause why its license should not be revoked or suspended.
§29-22F-13. General procedure and administration.
Each and every provision of the "West Virginia Tax Procedure and Administration Act" set forth in article ten, chapter eleven of this code shall apply to the fees imposed by this article with like effect as if the act were applicable only to the fees imposed by this article and were set forth in extenso in this article.
ARTICLE 22G. STATE ATHLETIC COMMISSION.
§29-22G-1. Commission abolished.
The State Athletic Commission is abolished effective July 1, 2009. On and after that date, the Gaming and Racing Control Commission created by article twenty-two, chapter twenty-nine of this code shall have sole responsibility for the administration of this article, except for those responsibilities delegated to and reserved for the Director of the Gaming and Racing Control Agency created under article twenty-two, chapter twenty-nine of this code.

§29-22G-2. Commission to have sole control of boxing, etc., matches; licenses; municipality not to tax boxing, etc., club.

(a) The commission has jurisdiction over all amateur, professional and semiprofessional boxing, sparring matches and exhibitions, or any form, thereof, to be conducted within the state by any club, individual, corporation or association.
(b) No boxing, sparring or exhibition may be conducted the state except pursuant to the commission's authority and held in accordance with this article. The commission may issue and revoke the license to conduct, hold or give boxing or sparring matches or exhibitions to any club, corporation, association or individual. Every license is subject to rules the commission may prescribe. Every application for a license shall be on a blank form provided by the commission.
(c) No promoter's license may be granted to any club, corporation, association or individual, unless the signer of the application is a bona fide resident of the State of West Virginia. Upon application of the promoter's license, the promoter shall pay a state license fee of $125 for one year. The fee shall be in the form of a certified check or money order and shall be paid to the order of the commission to be deposited in a nonappropriated special account established in the State Treasury by section eight-a, article twenty-two, chapter twenty-nine of this code. The fees deposited in the nonappropriated special account shall be used by the Gaming and Racing Control Agency to pay salaries and other expenditures. On the last day of each fiscal year, unencumbered and undesignated funds from the deposits of boxing fees imposed by this article that remain in the nonappropriated special account in the excess of $250,000 shall be transferred to the General Revenue Fund. If the license is not granted, the director shall refund the full amount.
(d) Nonprofit chartered and charitable organizations are exempt from this license fee for all amateur events. No municipal corporation may impose any license tax on boxing, sparring or exhibition clubs, notwithstanding the provisions of any section of the code respecting municipal taxes and licenses. The granting of a license to a club by the commission, or the holding of a license by a club, individual, corporation or association, does not prevent the commission from canceling or revoking the license to conduct an event, as provided in this section.
(e) The commission shall follow the current United States boxing authority rules and requirements to enable the proper sanctioning of all participants, referees, judges and matches or exhibitions conducted under the rules described in subdivision (1), subsection (c), section twenty-two of this article and shall cooperate fully with the boxing authority in order that the sanctioning be extended to state boxers. For full contact boxing events and other boxing events that follow nontraditional rules, the commission may impose any limitations or restrictions reasonably necessary to guarantee the safety of the participants and the fair and honest conducting of the matches or exhibitions and may refuse to license any event that poses an unreasonable degree of risk to the participants.
§29-22G-3. Licenses to be in lieu of all other licenses.
The licenses shall be in lieu of all other licenses or license taxes of West Virginia, and no county, municipality or other political subdivision of West Virginia shall be empowered to levy or impose any license or license tax on any person engaged in the business of conducting boxing or sparring matches and exhibitions under the jurisdiction of and being licensed by the commission.
§29-22G-4. Definitions.
The following terms shall be defined as follows:
(a) "Commission," "athletic commission" or "state athletic commission," means the Gaming and Racing Control Commission created by article twenty-two of this chapter.
(b) "Boxing" means any fighting event that includes or permits the striking of an opponent with a closed fist, even if wrestling moves, elements of martial arts, or striking an opponent with the feet are also permitted.
§29-22G-5. Payment of official in charge.
The deputy, inspector or other officials designated by the commission to be in charge of a boxing event shall be paid by the promoter at a rate of $75 for each weigh-in ceremony and $75 for each day of bouts. If a weigh-in occurs within three hours before the boxing bouts are scheduled to begin, the deputy, inspector or other officials will be paid only $75 once for that particular night or day's events. Judges, timekeepers and inspectors shall be paid by the promoter at a rate of $50 per day. Referees shall be paid by the promoter at a rate of $75 per day.

§29-22G-6. Interference with or restraining of professional boxing or exhibitions.

No person, club, organization or corporation shall, except in accordance with law, interfere with or restrain, or attempt to interfere with or restrain, by any act, threat or otherwise, either within or without this state, the putting on or the conducting of any professional boxing match or exhibition of this state.

§29-22G-7. Issuance of license; qualification for licenses; application of other provisions of chapter; hearings.

The commission, at its discretion, may issue a license to promote, conduct or hold professional boxing, sparring matches and exhibitions to any person, corporation, association, club or organization eligible for a license under this chapter.
Before being granted a license or the renewal of a license, the applicant must establish to the satisfaction of the commission that he or she:
(a) Is skilled, or has knowledge, in the profession of boxing;
(b) Is of good moral character;
(c) Is physically fit and mentally sound;
(d) Will conduct his business in the best interest and welfare of the public, preserving the safety and health of participants and the best interests of professional boxing generally;
(e) Will adhere to and comply with all the rules of the commission pertaining to the license.
In the case of a corporate applicant, these factors shall pertain to its officers, directors, principal stockholders and employees. Every license and licensee shall be subject to the rules as the commission may prescribe.
§29-22G-8. Sanction or permit from commission.
No boxing, sparring matches or exhibitions shall be conducted by any individual, club, organization or corporation having a license to conduct any the exhibitions in this state except by a sanction or permit from the commission.

§29-22G-9. Sanction of commission and reports, etc., for showing of telecasts of boxing, sparring, etc.

Every club, corporation or association holding, showing or exhibiting a simultaneous telecast of any live, current or spontaneous boxing, sparring or exhibition or performance on a closed circuit telecast or subscription television viewed within this state, whether originating in this state or another state, and for which an admission charge is made shall obtain a permit from the commission, and shall within twenty-four hours after the termination of the showing, furnish the commission a written report, duly verified by one of its officers, showing the number of tickets sold for the showing and the amount of the gross proceeds thereof, and other matters as the commission may prescribe.
§29-22G-10. Length of rounds; weight of gloves.
No boxing or sparring match or exhibition may be more than fifteen rounds of three minutes each in length with intermission of one minute each between rounds; and the contestants shall wear, during the contests, gloves weighing at least ten ounces, unless the commission finds that for limited categories or classes of fights a lesser weight is sufficient for the protection of the participants and authorizes the lesser weight by legislative rule.

§29-22G-11. Cancellation of license for fake boxing, etc., exhibition; penalty for participating in ~~such~~ the exhibition.

Any club, corporation, association or individual which may conduct, hold or give or participate in any sham or fake boxing, sparring or exhibition shall forfeit its license, which shall be, canceled and declared void; and it may not be entitled to receive any license pursuant to the provisions of this article, nor shall any license thereafter be granted to any club, corporation, association or individual, including among its members, directors, partners or stockholders, any member, director, partner or stockholder of the club, corporation, association or individual whose license has been so forfeited. Any contestant who shall participate in any sham or fake boxing, sparring or exhibition, and any other person whatsoever who shall in any manner be connected with the arranging, planning, holding, conducting or giving of any sham or fake boxing, sparring or exhibition shall be guilty of a misdemeanor, and, shall upon conviction thereof, be fined not less than $500, nor more than $1,000, or be confined in jail for a period of not less than six months, nor more than one year or both; and any contestant so participating shall be further totally disqualified from further admission or participation in any boxing or sparring held or given by any club, corporation, association or individual duly licensed for the purpose.
§29-22G-12. Suspension, revocation, etc., of license.
The commission may suspend, revoke or place on probation any licensee, who in the discretion of the commission:
(a) Is guilty of failure to obey any lawful order of the commission, the secretary or any inspector;
(b) Is guilty of gross immorality;
(c) Is unfit or incompetent by reason of negligence;
(d) Is guilty of violating any provision of this article or rules of the commission;
(e) Has committed fraud or deceit in securing a license for himself or another;
(f) Has been convicted of a felony or misdemeanor involving moral turpitude in any jurisdiction within one year preceding the suspension or revocation and the conviction not previously reported to the commission by the licensee;
(g) Is an habitual drunkard or addicted to the use of narcotics;
(h) Is or has become mentally incompetent;
(i) Is or has been guilty of unprofessional or unethical conduct, or the conduct as to require a suspension or revocation of license in the interest of the public;
(j) Has failed to furnish the proper party a copy of any contract or statement required by this chapter or the rules and promulgated pursuant to this section, or has breached the contract;
(k) Has loaned or permitted another person to use his or her license, or has borrowed or used the license of another;
(l) Has failed to maintain in force the bond required by this article;
(m) Has by act or omission conducted himself or herself in a manner which would tend to be detrimental to the best interests of boxing generally, or to the public interest and general welfare;
(n) Has been disciplined in any manner by the Gaming and Racing Control Commission or similar body of any jurisdiction;
(o) Has failed to pay a fine or forfeiture imposed by this chapter;
(p) Has, in any jurisdiction, by any act, threat, statement or otherwise, restrained, hindered, interfered with or prevented another promoter, club, association or booking agent, or has attempted, in any manner to restrain, hinder, interfere with or prevent another promoter, club, association or booking agent from presenting any boxing match or exhibition; or
(q) Has, either within or without this state, engaged, directly or indirectly, in restraints or monopolies or taken any action tending to create or establish restraints or monopolies or conspired with others to restrain any person or persons from participating or competing in any boxing match or exhibition for any promoter, club, association or booking agent.
(r) The provisions of article five, chapter twenty-nine-a of this code apply to the denial, revocation, suspension of or refusal to renew a license.

§29-22G-13. Reports by clubs to commission; bonds of applicants for license.

Every club, corporation, association or individual which may hold or exercise any of the privileges conferred by this article, shall within twenty-four hours after the determination of any contest, furnish to the commission a written report, duly verified by one of its officers, showing the number of tickets sold for the contest, the amount of the gross proceeds and other matters as the commission may prescribe. Before any license shall be granted to any club, corporation, association or individual to conduct, hold or give any boxing, sparring or exhibition, the applicant shall execute and file with the commission a surety bond in the sum of which shall be at the discretion of the commission, to be approved as to form and the sufficiency of the security by the commission. The bond shall cover all purses, awards and payments to be paid by the promoter.

§29-22G-14. Presence of members of commission or inspector at exhibitions and matches.

Each member of the commission shall have the privilege of being present at all exhibitions and matches without charge, and shall, when present, see that the rules are strictly observed, and may be present at the counting of the gross receipts; and in the event that no member of the commission can be present, the commission may appoint an inspector to be present representing the commission, which inspector shall have the same privilege conferred upon a member of the commission; and the inspector shall immediately mail to the commission the official box office statement received by him from the officers of the club.
§29-22G-15. Referee and judges; appointment by commission; powers, payment.

The chief official of the boxing match or exhibition shall be the referee. The referee and judges shall be appointed by the commission, and shall receive from the commission a card authorizing them to act as a judge or referee, and no club may employ or permit anyone to act as referee except one holding the card of authorization from the commission. The referee shall have general supervision and control over the match or exhibition and shall be paid by the promoter $25 for each day or night's services. The referee shall be limited to refereeing a maximum of thirty rounds per day or night unless special consent is given by the commission.

§29-22G-16. Examination of contestants by physician; presence at contest; report to commission.

In any boxing or exhibition match, each contestant must be examined by a qualified physician prior to entering the ring. The physician shall certify in writing over his signature, as to contestant's physical condition to engage in the contest. Qualified technicians may assist the physician in the examinations, and a physician shall be in attendance during any boxing bouts prepared to deal with any emergency which may arise. But in the event that the physician is convinced of the unfitness of either of the contestants to enter the contest, he or she shall at once certify the opinion to the club, corporation, association or individual under whose management the contest is conducted, and it shall be unlawful for the club, corporation, association or individual to proceed. Whenever a participant, in the opinion of the physician, is unable to continue in a boxing match, the physician may stop the bout.
§29-22G-17. Weight of boxers.
No boxer may be permitted to contest against an opponent ten pounds heavier than himself when the weight of either contestant is less than one hundred fifty pounds.
§29-22G-18. Licenses for contestants, referees and managers.
No professional contestant, trainer, inspector, referee or professional manager is permitted to take part in any boxing contest or exhibition unless holding a license from the state, the license to be issued by the commission upon payment of $10 a year. The fees shall accompany the application and shall be in the form of a certified check or money order and shall be issued to the treasurer of the state of West Virginia to be deposited in the general fund.
§29-22G-19. Penalty for engaging in unlawful contest.
Any person who engages in a boxing contest with another person for money or other things of value, or for any championship, when an admission fee is charged, either directly or indirectly in this state, except when the contest is held in compliance with this article, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $50, and not more than $500.
§29-22G-20. Penalty for violation not expressly provided for.
If any person violates any provision of this article, for which a penalty is not here expressly provided, he shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $50, nor more than $500.
§29-22G-21. Injunctive relief for violation of chapter.
In the event of violation of any provision of this chapter, in addition to any other remedy, the commission may apply to any court of record in the state of West Virginia for relief without being compelled to allege or prove that any adequate remedy at law does not exist.

§29-22G-22. Rules and regulations governing contestants and matches.

(a) The commission shall promulgate rules in compliance with the provisions of article three, chapter twenty-nine-a of this code.
(b) The commission shall promulgate rules as it determines to be necessary to regulate professional and semiprofessional boxers, and professional and semiprofessional boxing matches and exhibitions. For full contact boxing and other boxing events that follow nontraditional rules, rules guaranteeing the safety of the participants and the fair and honest conducting of the matches or exhibitions are authorized.
(c) The commission shall promulgate separate rules for amateur boxers and amateur boxing, sparring matches and exhibitions as follows:
(1) Rules which comply with the requirements of the rules of the current United States amateur boxing authority to the extent that any boxer complying with them will be eligible to participate in any state, national or international boxing match sanctioned by the current United States amateur boxing authority or the international amateur boxing association.
(2) Rules which may differ from the rules of the current United States amateur boxing authority but which adequately guarantee the safety of the participants and the fair and honest conducting of the matches or exhibitions. As a part of these rules, the commission shall include a requirement that all boxers participating in matches or exhibitions conducted under these rules be informed prior to the participation that the participation will disqualify them from participating in state, national or international matches and exhibitions sanctioned by the current United States amateur boxing authority or the international amateur boxing association.
(d) All rules promulgated by the State Athletic Commission and in effect on the effective date of this section, remain in effect unless amended or repealed.

§29-22G-23. Special permits to American Legion and other organizations.

The American Legion, National Guard, Veterans of Foreign Wars or other charitable organizations shall obtain a permit from the commission to conduct a boxing, sparring or exhibition contests for any charitable purpose. The organization may not be charged for the permit.
§29-22G-24. Certain amateur matches exempt.
The provisions of this article do not apply to amateur wrestling, amateur boxing, or amateur sparring matches or exhibitions conducted by any university, college or high school.
ARTICLE 22H. HORSE AND DOG RACING.
§29-22H-1. License required for horse and dog racing; exception.

(a) A racing association shall possess a license from the Gaming and Racing Control Commission prior to conducting any race meeting.
(b) This article does not apply to a local, county or state fair, horse show or agriculture or livestock exposition which conducts horse or dog racing, Provided, That the pari-mutuel system of wagering is not conducted.

§29-22H-2. Permits required for horse and dog racetrack positions; residency requirements for employees of licensees.

(a) The following persons including but not limited to: a horse owner, dog owner, jockey, apprentice jockey, exercise boy, kennel keeper, trainer, groom, plater, stable foreman, valet, veterinarian, agent, clerk of the scales, starter, assistant starter, timer, judge or pari-mutuel employee, or those set forth in the rules of the commission shall have a permit issued by the commission.
(b) At least 80% of the persons employed by a licensee at any horse or dog race meeting must be residents of this state for the previous year. The provisions of this subsection do not apply to persons engaged in the construction or equipping of a horse or dog racetrack, nor to racing officials designated by the commission or racing officials designated by the executive officials of a licensee.
§29-22H-3. Definitions.
Unless the context in which used clearly requires a different meaning, as used in this article:
(a) "Accredited thoroughbred horse" means a thoroughbred horse that is:
(1) Foaled in West Virginia; or
(2) Sired by an accredited West Virginia sire; or
(3) As a yearling, finished twelve consecutive months of verifiable residence in the state, except for thirty days' grace:
(A) For the horse to be shipped to and from horse sales where the horse is officially entered in the sales catalogue of a recognized thoroughbred sales company; or
(B) For obtaining veterinary services, documented by veterinary reports;
(4) And, Registered with the Jockey Club;
(b) "Accredited West Virginia sire" means a sire that is permanently domiciled in West Virginia, stands a full season in West Virginia and is registered with West Virginia Thoroughbred Breeders Association under the authorization and oversight of the commission;
(c) "Applicant" means any racing association making application for a license, any person making application for a permit, or any person making application for a construction permit under the provisions of this article;
(d) "Breeder of an accredited West Virginia horse" means the owner of the foal at the time it was born in West Virginia;
(e)"Capital improvement" means capital improvement as defined by the Internal Revenue Code;
(f) "Construction permit" means the construction permit required by the provisions of section twenty-five of this article;
(g) "Construction permit holder" means any person holding a construction permit required by the provisions of section twenty- five of this article;
(h) "Conduct" includes "assist, aid or abet in holding or conducting";
(i) "Director" means the Director of the Gaming and Racing Control Agency established in article twenty-two, chapter twenty- nine of this code.
(j) "Dog racing" means any type of dog racing, including, but not limited to, greyhound racing;
(k) "Fund" means the West Virginia Thoroughbred Development Fund established in section twenty-two of this article;
(l) "Harness racing" means horse racing in which the horses participating are harnessed to a sulky, carriage or other vehicle and may not include any form of horse racing in which the horses are mounted by jockeys;
(m) "Horse racing" means any type of horse racing, including, but not limited to, thoroughbred racing and harness racing;
(n) "Host racing association" means any person who, pursuant to a license or other permission granted by the host governmental entity, conducts the horse or dog race upon which wagers are placed.
(o) "Legal wagering entity" means any person engaged in horse racing or dog racing pursuant to a license or other permission granted by the state in which the person's racetrack is situated and conducting race meetings, with a pari-mutuel wagering system permitted under that state's laws and in which the participants are wagering with each other and not the operator.
(p) "Legitimate breakage" means the percentage left over in the division of a pool;
(q) "License" means the license required by the provisions of section one of this article;
(r) "Licensee" means any racing association holding a license required by the provisions of section one of this article.;
(s) "Live racing dates" means the actual running of a race at a licensee's racetrack in this state in which live thoroughbred horses or dogs participate in the race at the licensed racetrack.
(t) "Municipality" means any Class I, Class II and Class III city and any Class IV town or village incorporated as a municipal corporation under the laws of this state prior to the January 1, 1987.
(u) "Net simulcast income" means the total deduction deducted each day by the licensee from the pari-mutuel pools on simulcast horse or dog races, less direct simulcast expenses, including, but not limited to, the cost of simulcast signals, telecommunication costs and decoder costs;
(v) "Owner of an accredited West Virginia sire" means the owner of record at the time the offspring is conceived;
(w) "Owner of an accredited West Virginia horse" means the owner at the time the horse earned designated purses to qualify for restricted purse supplements provided in section twenty-two of this article;
(x) "Pari-mutuel" means a mutuel or collective pool that can be divided among those who have contributed their wagers to one central agency, the odds to be calculated in accordance to the collective amounts wagered upon each contestant running in a horse or dog race upon which the pool is made, but the total to be divided among the first three contestants on the basis of the number of wagers on these;
(y) "Pari-mutuel clerk" means any employee of a licensed racing association who is responsible for the collection of wagers, the distribution of moneys for winning pari-mutuel tickets, verification of the validity of pari-mutuel tickets and accounting for pari-mutuel funds;
(z) "Permit" means the permit required by the provisions of section two of this article;
(aa) "Permit holder" means any person holding a permit required by the provisions of section two of this article;
(bb) "Pool" means a combination of interests in a joint wagering enterprise or a stake in the enterprise;
(cc) "Purse" means any purse, stake or award for which a horse or dog race is run;
(dd) "Race meeting" means the whole period of time for which a license is required by the provisions of section one of this article;
(ee) "Racetrack" means a grounds, place or enclosure where a horse or dog race occurs.
(ff) "Racing association" or "person" means any individual, partnership, firm, association, corporation or other entity or organization of whatever character or description;
(gg) "Racing Commission," "Gaming and Racing Control Commission," or "Commission" means the Gaming and Racing Control Commission established in article twenty-two, chapter twenty-nine of this code;
(hh) "Raiser of an accredited West Virginia horse" means the owner of the yearling at the time it finished twelve consecutive months of verifiable residence in the state: Provided, That the horse is not an eligible West Virginia bred horse. During the period, the raiser will be granted one month of grace for his or her horse to be shipped to and from thoroughbred sales where the horse is officially entered in the sales catalogue of a recognized thoroughbred sales company. In the event the yearling was born in another state and transported to this state, this definition does not apply after December 31, 2007, to any pari-mutuel racing facility located in Jefferson County; nor shall it apply after December 31, 2012, and thereafter to any pari-mutuel racing facility located in Hancock County. Prior to the horse being shipped out of the state for sales, the raiser must notify the commission of his or her intentions;
(ii) "Registered greyhound owner" means an owner of a greyhound that is registered with the National Greyhound Association;
(jj) "Regular purse" means both regular purses and stakes purses.
(kk) "Resident of this state" means an individual who maintained a permanent place of residence in this state for the previous year.
(ll) "Stewards" means the three stewards representing the commission at each licensed race track, whose duty it is to supervise any horse or dog race meeting. Each race track shall reimburse the commission for the salary and benefits of 1 steward at each race track.
(mm) "Televised racing day" means a calendar day, assigned by the commission, at a licensed racetrack on which pari-mutuel betting is conducted on horse or dog races run at other racetracks in this state or at racetracks outside of this state which are broadcast by television at a licensed racetrack and which day or days have had the prior written approval of the representative of the majority of the owners and trainers who hold permits required by section two of this article;
(nn) "Thoroughbred racing" means flat or running type horse racing in which each horse is a thoroughbred and is mounted by a jockey; and
(oo) "To the dime" means that wagers shall be figured and paid to the dime.

§29-22H-4. West Virginia Racing Commission abolished; functions transferred to the Gaming and Racing Control Commission.

(a) The West Virginia Racing Commission is abolished effective July 1, 2009. On and after that date, the Gaming and Racing Control Commission created by article twenty-two, chapter twenty- nine of this code shall on and after that date have sole responsibility for the administration of this article, except for those responsibilities delegated to or reserved for the Director of the Gaming and Racing Control Agency created by article twenty-two, chapter twenty-nine of this code.
(b) As soon as possible after the close of each calendar year, the commission shall submit to the Governor a report of the racing transactions of the commission during the preceding calendar year. At the discretion of the commission, this report may be submitted in an omnibus report that includes other divisions and aspects of the Gaming and Racing Control Agency.
(c) All special accounts and funds in this article that were previously created and maintained in a banking institution of the Racing Commission's choice shall be reestablished in the State Treasury by July 1, 2010.
(d) All special accounts and funds in this article that contain the phrase "Racing Commission" in their names are deemed to be special accounts and funds administered by the Gaming and Racing Control Commission, and when easily achievable, the names should be changed to so reflect.
§29-22H-5. Racing secretary and other personnel offices abolished as of July 1, 2009; administrative functions and personnel placed under the supervision of the Director of the Gaming and Racing Control Commission.

(a) The statutory offices of racing secretary, assistant racing secretary, chief clerk, director of security, director of audits, and chief chemist are abolished effective July 1, 2009.
(b) The director shall employ and define the duties of stewards to represent the commission, supervisors of the pari- mutuel wagering, veterinarians, inspectors, accountants, guards and all other employees deemed by the commission and the director to be essential in connection with any race.
(c) Persons employed by this article shall serve at the will and pleasure of the director. They shall receive compensation as may be fixed by the director within the limit of available funds, and shall be reimbursed for all reasonable and necessary expenses actually incurred in the performance of their official duties.
(d) Effective July 1, 2009, all employees of the Racing Commission are transferred to the Gaming and Racing Control Agency.
§29-22H-6. Powers and authority of the commission.
(a) With respect to horse and dog races, the commission, or as the commission delegates to the director, shall:
(1) Supervise all horse and dog races;
(2) Supervise all persons involved in horse and dog races;
(3) Investigate applicants and determine the eligibility of the applicants for a license, permit or construction permit;
(4) Prescribe a form and fix the annual fee to be paid to the commission for any permit;
(5) Promulgate legislative rules in accordance with the provisions of article three, chapter twenty-nine-a of this code to :
(A) Regulate meetings and races;
(B) Describe the kinds of legal combination wagers which may be placed in connection with the pari-mutuel system of wagering;
(C) Register colors and assumed names and to fix the annual fee to be paid to the commission for the registration;
(D)Fix and regulate the minimum purse to be offered during any race meeting;
(E) To Fix a minimum and a maximum number of horse races or dog races to be held on any racing day; and,
(F) Authorize stewards, starters and other racing officials to impose fines or other sanctions upon any person connected with or involved in a race during a race meeting; and to authorize stewards to rule off the grounds of any racetrack any bookmaker or other undesirable individual determined detrimental to the best interests of horse and dog racing or the pari-mutuel system of wagering in connection therewith;
(6) Enter, have free access to and investigate the office, racetrack, kennel, facilities, training facilities and other places of business of any licensee or any training facilities to determine whether the provisions of this article and its rules are being complied with;
(7) Investigate alleged violations of the provisions of this article, its rules, orders and final decisions and to take appropriate disciplinary action against any licensee or permit holder or construction permit holder for the violation or institute appropriate legal action for the enforcement or take disciplinary action and institute legal action;
(8) Remove any racing official or racing employee of any licensee, for the violation of any provision of this article, any rule of the commission or for any fraudulent practice;
(9) Acquire, establish, maintain and operate, or to provide by contract for the maintenance and operation of, a testing laboratory and related facilities for the purpose of conducting saliva, urine and other tests on the horse or dog or horses or dogs run or to be run in any horse or dog race meeting, and to purchase all equipment and supplies considered necessary or desirable in connection with the acquisition, establishment, maintenance and operation of any testing laboratory and related facilities and all the tests;
(10) Hold up, in any disputed horse or dog race, the payment of any purse, pending a final determination of the results. The commission shall promulgate a legislative rule which establishes a procedure with a time frame;
(11) Require each licensee to file an annual balance sheet and profit and loss statement pertaining to the licensee's horse or dog racing activities in this state, together with a list of each licensee's stockholders or other persons having any beneficial interest in the horse or dog racing activities of the licensee;
(12) To issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of any books, records and other pertinent documents, and to administer oaths and affirmations to the witnesses, whenever, in the judgment of the commission, it is necessary to do so for the effective discharge of its duties;
(13) To keep accurate and complete records of its proceedings and to certify the same as may be appropriate;
(14) To take any other action that may be reasonable or appropriate to effectuate the provisions of this article and its reasonable rules and regulations;
(15) Provide breeders' awards, purse supplements and moneys for capital improvements at racetracks in compliance with section twenty-two of this article; and
(b) Mediate on site, upon request of a party, all disputes existing between the racetrack licensees located in this state and representatives of a majority of the horse owners and trainers licensed at the track which threaten to disrupt any scheduled racing event or events. The commission shall, upon the request of a party, mediate on site, all disputes existing between racetrack licensees and representatives of pari-mutuel clerks which threaten to disrupt any scheduled racing event or events. When a request for mediation is made, the commission shall retain a trained mediator to act as mediator in each dispute that arises. Each opposing party involved in any dispute shall negotiate in good faith with the goal of reaching a fair and mutual resolution. The mediator may issue recommendations designed to assist each side toward reaching a fair compromise. If a party affected requests a hearing before the commission, is shall conduct a hearing on whether or not to approve the recommendations. The commission shall issue an order within thirty days of receipt of the recommendation from the mediator or thirty days of conducting a hearing. The parties shall abide by any order of the commission.
(c) The commission may investigate the availability of educational programs for its members.

§29-22H-7. Application for license; forms; time for filing; disclosure required; verification; bond; application for permit.

(a) Any racing association desiring to conduct a race meeting shall file with the commission an application for a license.
(b) A separate application shall be filed for each license. The application shall be filed with the commission and shall disclose, but not be limited to, the following:
(1) If the applicant is an individual, the full name and address of the applicant;
(2) If the applicant be is a partnership, firm or association, the full name and address of each partner or member, the name of the partnership, firm or association and its post-office address;
(3) If the applicant be is a corporation, its name, the state of its incorporation, its post-office address, the full name and address of each officer and director, ~~thereof,~~ and if a foreign corporation, whether it is qualified to do business in this state;
(4) The live racing dates, totaling not less than two hundred twenty, the applicant intends to conduct the horse or dog race meeting;
(5) The location of the racetrack;
(6) Whether the applicant, any partner, member, officer or director has previously applied for a license or for a similar license in any other state, and if so, whether the license was issued, refused, suspended or revoked; and
(7) Other information as the commission may reasonably require;
(b) The application shall be verified by the oath or affirmation of the applicant for the license. When required by the commission, an applicant for a license shall furnish evidence satisfactory to the commission of the applicant's ability to pay all taxes due the state, purses, salaries of officials and other expenses incident to the horse or dog race meeting. In the event the applicant is not able to furnish satisfactory evidence of the applicant's ability to pay the expenses and fees, the commission may require bond or other adequate security before the requested license is issued.
(c) Any person desiring to obtain a permit shall apply application therefor on a form prescribed by the commission. The application for the permit shall be accompanied by the fee prescribed by the commission. Each applicant for a permit shall set forth in the application the information as the commission shall reasonably require.

§29-22H-8. Applicants for licenses and permits to provide fingerprints.

(a) All new applicants for licenses issued by the commission shall furnish fingerprints for examination by the West Virginia State Police and the Federal Bureau of Investigation. The fingerprints shall be furnished by all persons named in the application and shall be accompanied by a signed authorization for the release of information by the West Virginia State Police and the Federal Bureau of Investigation.
(b) The commission may require any applicant seeking the renewal of a license or permit to furnish fingerprints for examination by the West Virginia State Police and the Federal Bureau of Investigation. The commission may require any persons required to be named in an application to provide fingerprints and the fingerprints shall be accompanied by a signed authorization for the release of information by the West Virginia State Police and the Federal Bureau of Investigation.

§29-22H-9. Consideration of application for license or permit.

(a) The commission shall consider any application for a license or permit. The commission shall enter an order either approving or denying the application.
(b) If an application for a license is approved, the commission shall issue a license to conduct a race meeting, and shall designate on the face of the license:
(1) The kind or type of horse or dog racing for which the same is issued,
(2) The racing association to which it is issued;
(3) The dates upon which the race meeting is to be conducted;
(4) The location of the racetrack, and
(5) Other information the commission considers proper.
(c) The commission may deny the application and refuse to issue the license or permit, if the commission finds that the applicant:
(1) Has knowingly made false statement of a material fact in the application or has knowingly failed to disclose any information called for in the application;
(2) Is or has been guilty of any corrupt or fraudulent act, practice or conduct in connection with any horse or dog race meeting in this or any other state;
(3) Has been convicted, within ten years prior to the date of the application, of a felony or a crime involving moral turpitude in any jurisdiction;
(4) Has failed to comply with the provisions of this article or any rule of the commission;
(5) Has had a license to conduct a horse or dog race meeting or a permit denied for just cause, suspended or revoked in any other jurisdiction;
(6) Has defaulted in the payment of any obligation or debt due to this state under the provisions of this article;
(7) Is, if a corporation, neither incorporated under the laws of this state nor qualified to do business within this state;
(8) In the case of an application for a license, has failed to furnish surety bond or other adequate security, if a surety bond is required;
(9) In the case of an application for a permit, is unqualified to perform the duties required for the permit sought; or
(10) In the case of an application for a permit, is, for just cause, determined to be undesirable to perform the duties required of the applicant.
(c) In issuing licenses and fixing dates for meetings at the various racetracks in this state, the commission shall consider the horse racing circuits and dog racing circuits with which the racetracks in this state are associated or contiguous to, and shall also consider dates which are calculated to increase the tax revenues accruing from horse and dog racing.
(d) A license is neither transferable nor assignable to any other racing association and may not permit the conducting of a race meeting at any racetrack. However, if the specified racetrack becomes unsuitable for the race meeting because of flood, fire or other catastrophe, or cannot be used for any reason, the commission may, upon application, authorize the race meeting, or any remaining portion thereof, to be conducted at any other racetrack available for that purpose, provided that the owner of the racetrack willingly consents.
(e) No type of horse ~~racing~~ or dog racing shall be conducted by a licensee at any race meeting other than that type for which a license was issued.
(f) Each permit shall be for the period ending December 31 of the year for which it was issued, and shall be valid at all race meetings, unless it be sooner suspended or revoked. A permit is neither transferable nor assignable to any other person.

§29-22H-10. Applications for Sunday racing. local option election procedures; protest procedures against approval.

(a) A licensed racing association operating a race track in a county may make application for permission to conduct horse or dog racing on Sunday between the hours of one p.m. and six p.m., local time.
The application shall be filed with the commission. The commission shall prescribe blank forms to be used in making ~~such~~ the application.
The commission, if it finds the application to be in order, may grant tentative approval of the application and, if it grants tentative approval of the application, shall prepare and publish a notice to the public that the commission has granted tentative approval of the application, that the commission solicits public comment from the citizens of the county and will hold a public hearing in the county on a date specified in the notice in the county where the horse or dog racing track is located, that the commission shall take the comment into consideration in deciding whether or not to grant or deny final approval, and that the commission will make final approval of the application at the expiration of sixty days from the date of the first publication of the notice, which date shall be specified in the notice, unless within that time in accordance with subsection (c) of this section, the county commission of the county in which the race track is located shall order an election. The notice shall be published as a Class II 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 race track is located: Provided, That prior to granting final approval, the commission shall solicit public comment from the citizens of the county, and hold a public hearing in the county on a date specified in the hearing notice specified above, in the county where the horse or dog racing track is located and shall take the comment into consideration in deciding whether or not to grant final tentative approval. If no election is ordered, the commission shall proceed to consider final approval of the application.
(b) The county commission shall, upon the written petition of qualified voters residing within the county equal to at least 15% of the number of persons who voted in that county in the next preceding general election, received within the period specified in subsection (a) of this section, which petition may be in any number of counterparts, order an election to determine whether it is the will of the voters of the county that racing be permitted on Sundays in the county, which election shall be held at the next primary or general election held in the county. The commission shall permit the racing pending certification of the results of the election.
(c) If the election is ordered, the county commission shall give notice of the election by publication of the notice as a Class II-0 legal advertisement in accordance with the provisions of article three, chapter fifty-nine of this code. The notice shall be published within twenty-one consecutive days next preceding the date of the election.
(d) The ballot, or the ballot labels where voting machines are used, shall have printed thereon substantially the following:
"Shall the West Virginia Gaming and Racing Control Commission be authorized to approve horse racing on Sundays between the hours of one p.m. and six p.m. in ________________________ County, West Virginia?

/ / Yes / / No

(Place a cross mark in the square opposite your choice.)"
In a county in which dog racing is conducted, the term "dog racing" shall be substituted for "horse racing" on the ballot or ballot label.
(e) Each individual qualified to vote in the county shall be qualified to vote at the election. The votes in the election shall be counted and returns made by the election officers and the results certified by the commissioners of election to the county commission, which shall canvass the ballots, all in accordance with the laws of this state relating to general elections insofar as the same are applicable. The county commission shall, without delay, canvass the votes cast at the election and certify the results thereof to the commission, and shall transmit a certified copy of the results to the Secretary of State.
(f) After the certification of the results of ~~such~~ the election, the commission shall:
(1) Grant final approval of an application for a license which contains racing dates which fall on Sunday if a majority of the voters voting at the election vote yes, and on the racing dates all racing and other activities authorized by this article shall be lawful, any other provisions of this code to the contrary notwithstanding; or
(2) Deny final approval of an application for a license which contains racing dates which fall on Sunday if less than a majority of the voters voting at the election vote yes.
(g) After an election to determine whether it is the will of the voters of the county that racing be permitted on Sundays in the county, another election on the issue may not be held for a period of five years.
(h) After five years from the final approval, it shall be the duty of the county commission upon a petition in writing of qualified voters residing within the county equal to at least 15% of the number of persons who voted in that county in the next preceding general election, which petition may be in any number of counterparts, to order an election to determine whether it is the will of the voters of the county that racing on Sundays be discontinued in the county. The provisions of subsections (c) and (e) of this section shall govern the election. The ballot, or the ballot labels where voting machines are used, shall have printed thereon substantially the following:
"Shall racing of horses on Sunday in ________________ County, West Virginia, be discontinued?

/ / Yes / / No

(Place a cross mark in the square opposite your choice.)"
In a county in which dog racing is conducted, the word "dogs" shall be substituted for "horses" on the ballot or ballot label. If it be the will of a majority of the voters of the county that Sunday racing be discontinued in the county, it shall be the duty of the commission thereafter, for a period of at least five years and until a subsequent election shall otherwise direct, to deny applications to race on Sundays in the county.
(i) Upon the written petition of qualified voters residing within the county equal to at least 30% of the number of persons who voted in that county in the next preceding general election, which petition may be in any number of counterparts, presented to the commission within sixty days after the expiration of the publication protesting against the tentative approval, the approval may not become effective and another petition may not be filed for a period of five years.

§29-22H-11. Horse or dog racing after six o'clock postmeridian on Sundays.

(a) Notwithstanding any other provisions of this code to the contrary, a licensed racing association operating a horse or dog racetrack in a county in which Sunday racing has been approved under provisions of section ten of this article may make applications to the commission for permission to conduct horse or dog racing after the hour of six o'clock postmeridian on Sundays.
(b) The commission, if it finds the application to be in order, may grant tentative approval of the application and, if it grants tentative approval, shall prepare and publish a notice to the public and that the commission has granted tentative approval of the application and that the commission will make final confirmation of the application at the expiration of sixty days from the date of the first publication of the notice, which date shall be specified in the notice, unless within that time a petition for a local option election has been filed in accordance with subsection (c) of this section with the county commission of the county in which the racetrack is located. The notice shall be published as a Class II 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 racetrack is located: Provided, That prior to granting tentative approval hereunder, the commission shall solicit public comment from the citizens of the county where the horse racing track or dog racing track is located and shall take the comment into consideration in deciding whether or not to grant tentative approval.
(c) The county commission, upon the written petition of qualified voters residing within the county equal to at least 15% of the number of persons who voted in that county in the next preceding general election, which petition may be in any number of counterparts, shall order an election to determine whether it is the will of the voters of the county that racing be permitted after the hour of six o'clock postmeridian on Sundays in the county.
(d) No election to determine whether it is the will of the voters of a county that racing be permitted after the hour of six o'clock postmeridian on Sundays in the county may be held at a general or primary election or within sixty days of any such election or in conjunction with any other election.
(e) The ballot, or the ballot labels where voting machines are used, shall have printed thereon substantially the following:
"Shall the West Virginia Gaming and Racing Control Commission be authorized to approve horse racing on Sundays after the hour of six p.m. in ____________________________ County, West Virginia?
[ ] Yes [ ] No
(Place a cross mark in the square opposite your choice.)"
In a county in which dog racing is conducted, the term "dog racing" shall be substituted for "horse racing" on the ballot or ballot label.
(f) Each individual qualified to vote in the county is qualified to vote at the local option election. The votes in the local option election shall be counted and returns made by the election officers and the results certified by the commissioners of election to the county commission, which shall canvass the ballots, all in accordance with the laws of this state relating to general elections insofar as the same are applicable. The county commission shall, without delay, canvass the votes cast at the local option election and certify the results thereof to the commission and shall transmit a certified copy of the results to the Secretary of State.
(g) The commission shall, after the certification of the results of the local option election, thereafter approve an application for a license which contains racing dates which fall on Sunday for any hour or hours after six o'clock postmeridian if a majority of the voters voting at the local option election vote yes and on the racing dates all racing and other activities authorized by this article are lawful, any other provisions of this code to the contrary notwithstanding.
§29-22H-12. Local option election procedure.

(a) Notwithstanding any other provision of law to the contrary, No license for dog racing may be issued for dog racing in any county where horse racing has been conducted at any time during the fifteen years preceding the application for the license, unless first approved by the voters of the county in which the proposed dog racing track is to be located. The county commission of any county in which horse racing has been conducted at any time during the fifteen-year period and in which a proposed dog racing track is to be located is authorized to call a local option election for the purpose of determining the will of the qualified voters within the county as to whether the commission may approve an application for a license for dog racing if the application and the applicant are otherwise in compliance with the provisions of this article and this code.
(b) The county commission may order an election to determine whether it is the will of the voters of the county that dog racing be permitted in the county.
(c) Any election to determine whether it is the will of the voters of the county that dog racing be permitted in the county shall be held at a general or primary election.
(d) The county commission shall give notice of the election by publication of the notice as a Class II-0 legal advertisement in accordance with the provisions of article three, chapter fifty-nine of this code. The notice shall be published within twenty-one consecutive days next preceding the date of the election.
(e) The ballot, or the ballot labels where voting machines are used, shall have printed thereon substantially the following:
"Shall the West Virginia Gaming and Racing Control Commission be authorized to approve dog racing in ___________________ County, West Virginia?
[ ] Yes [ ] No
(Place a cross mark in the square opposite your choice.)"
Each individual qualified to vote in the county shall be qualified to vote at the local option election. The votes in the local option election shall be counted and returns made by the election officers and the results certified by the commissioners of election to the county commission, which shall canvass the ballots, all in accordance with the laws of this state relating to general elections insofar as the same are applicable. The county commission shall, without delay, canvass the votes cast at the local option election and certify the results thereof to the commission and shall transmit a certified copy of the results to the Secretary of State.
(f) The commission may, after the certification of the results of the local option election, thereafter approve an application for a license for dog racing if a majority of the voters voting at the local option election vote yes.
(g) After an election to determine whether it is the will of the voters of the county that dog racing be permitted in the county, another election on the issue may not be held for a period of five years.
(h) If at the election a majority of the voters of the county shall approve dog racing in the county, it is lawful for the county commission, after five years from the approval, and it shall be the duty of the county commission upon a petition in writing of qualified voters residing within the county equal to at least 15% of the number of persons who voted in that county in the next preceding general election, which petition may be in any number of counterparts, to order an election to determine whether it is the will of the voters of the county that dog racing be discontinued in the county. The provisions of subsection (c), (d) and (e) of this section shall govern the election. The ballot, or the ballot labels where voting machines are used, shall have printed thereon substantially the following:
"Shall racing of dogs in _______________________ County, West Virginia be discontinued?
[ ] Yes [ ] No
(Place a cross mark in the square opposite your choice.)"

§29-22H-13. Pari-mutuel system of wagering authorized; licensee authorized to deduct commissions from pari-mutuel pools; retention of breakage; auditing; minors.

(a) The pari-mutuel system of wagering upon the results of any horse or dog race at any horse or dog race meeting conducted or held by any licensee is authorized if, and only if, such pari-mutuel wagering is conducted by the licensee within the confines of the licensee's horse racetrack or dog racetrack and the provisions of section one, article ten, chapter sixty-one of this code relating to gaming shall not apply to the pari-mutuel system of wagering in manner and form as provided in this article at any horse or dog race meeting within this state where horse or dog racing is permitted for any purse by any licensee. A licensee shall permit or conduct only the pari-mutuel system of wagering within the confines of the licensee's racetrack at which any horse or dog race meeting is conducted or held.
(b) A licensee is hereby expressly authorized to deduct a commission from the pari-mutuel pools as follows:
(1) The commission deducted by any licensee from the pari-mutuel pools on thoroughbred horse racing, except from thoroughbred horse racing pari-mutuel pools involving what is known as multiple betting in which the winning pari-mutuel ticket or tickets are determined by a combination of two or more winning horses, shall not exceed 17.25% of the total of the pari-mutuel pools for the day. Out of the commission mentioned in this subdivision, the licensee: (i) Shall pay the pari-mutuel pools tax provided in subsection (b), section fourteen of this article; (ii) shall make a deposit into a special fund to be established by the licensee and to be used for the payment of regular purses offered for thoroughbred racing by the licensee, which deposits out of pari-mutuel pools for each day during the months of January, February, March, October, November and December shall be 7.375% of the pari-mutuel pools and which, out of pari-mutuel pools for each day during all other months, shall be 6.875% of the pari-mutuel pools, which shall take effect beginning fiscal year 1990; (iii) shall pay .10% of the pari-mutuel pools into the general fund of the county commission of the county in which the racetrack is located, except if within a municipality, then to the Municipal General Fund; and (iv) Any licensee which has participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to December 31, 1992, shall make a deposit into a special fund to be established by the Racing Commission and to be used for the payment of breeders awards, restrictive races and stakes purses as authorized by section twenty-two of this article, which deposits out of pari-mutuel pools shall, from the effective date of this section, be 2% of the pools. The remainder of the commission shall be retained by the licensee.
Each licensee that permits or conducts pari-mutuel wagering at the licensee's thoroughbred horse racetrack shall annually pay $500,000 from the special fund required by this section to be established by the licensee for the payment of regular purses offered for thoroughbred racing by the licensee into a special fund established by the Racing Commission for transfer to a pension plan established by the Racing Commission for all back stretch personnel, including, but not limited to, exercise riders, trainers, grooms and stable forepersons licensed by the commission to participate in horse racing in this state and their dependents.
Each thoroughbred racetrack licensee is authorized to enter into an agreement with its local Horsemen's Benevolent and Protective Association under which an agreed upon percentage of up to 2% of purses actually paid during the preceding month may be paid to the local Horsemen's Benevolent and Protective Association from the special fund required by this section for their respective medical trusts for backstretch personnel and administrative fees.
The commission deducted by any licensee from the pari-mutuel pools on thoroughbred horse racing involving what is known as multiple betting in which the winning pari-mutuel ticket or tickets are determined by a combination of two winning horses shall not exceed 19% and by a combination of three or more winning horses shall not exceed 25% of the total of such pari-mutuel pools for the day. Out of the commission, as is mentioned in this paragraph, the licensee: (i) Shall pay the pari-mutuel pools tax provided in subsection (b), section fourteen of this article; (ii) shall make a deposit into a special fund to be established by the licensee and to be used for the payment of regular purses offered for thoroughbred racing by the licensee, which deposits out of pari-mutuel pools for each day during the months of January, February, March, October, November and December, for pools involving a combination of two winning horses shall be 8.25% and out of pari-mutuel pools for each day during all other months shall be 7.75% of the pari-mutuel pools, and involving a combination of three or more winning horses for the months of January, February, March, October, November and December the deposits out of the fund shall be 11.25% of the pari-mutuel pools, and which, out of pari-mutuel pools for each day during all other months, shall be 10.75 of the pari-mutuel pools; (iii) shall pay .10% of the pari-mutuel pools into the general fund of the county commission of the county in which the racetrack is located, except if within a municipality, then to the Municipal General Fund; and (iv) any licensee which has participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to December 31, 1992, shall make a deposit into a special fund to be established by the commission and to be used for the payment of breeder awards, for restrictive races and stakes purses which deposits out of pari-mutuel pools shall, from the effective date of this section, be 2% of the pools. The remainder of the commission shall be retained by the licensee.
The commission deducted by the licensee under this subdivision may be reduced only by mutual agreement between the licensee and a majority of the trainers and horse owners permitted by section two of this article or their designated representative. The reduction in licensee commissions may be for a particular race, racing day or days or for a horse race meeting. 50% of the reduction shall be retained by the licensee from the amounts required to be paid into the special fund established by the licensee under the provisions of this subdivision. The commission shall promulgate any reasonable rules that are necessary to implement the foregoing provisions.
(2) The commission deducted by any licensee from the pari-mutuel pools on harness racing shall not exceed 17.50% of the total of the pari-mutuel pools for the day. Out of the commission the licensee shall pay the pari-mutuel pools tax provided in subsection (c), section fourteen of this article and shall pay .10% into the general fund of the county commission of the county in which the racetrack is located, except if within a municipality, then to the Municipal General Fund. The remainder of the commission shall be retained by the licensee.
(3) The commission deducted by any licensee from the pari-mutuel pools on dog racing, except from dog racing pari-mutuel pools involving what is known as multiple betting in which the winning pari-mutuel ticket or tickets are determined by a combination of two or more winning dogs, shall not exceed 16.30$ of the total of all pari-mutuel pools for the day. The commission deducted by any licensee from the pari-mutuel pools on dog racing involving what is known as multiple betting in which the winning pari-mutuel ticket or tickets are determined by a combination of two winning dogs shall not exceed 19%, by a combination of three winning dogs shall not exceed 20% and by a combination of four or more winning dogs shall not exceed 21% of the total of such pari-mutuel pools for the day. The foregoing commissions are in effect for the fiscal years 1990 and one 1991. Thereafter, the commission shall be at the percentages in effect prior to the effective date of this article unless the Legislature, after review, determines otherwise. Out of the commissions, the licensee shall pay the pari-mutuel pools tax provided in subsection (d), section fourteen of this article and .10% of such pari-mutuel pools into the general fund of the county commission of the county in which the racetrack is located. In addition, out of the commissions, if the racetrack is located within a municipality, then the licensee shall also pay .30% of the pari-mutuel pools into the Municipal General Fund; or, if the racetrack is located outside of a municipality, then the licensee shall also pay .30% of the pari-mutuel pools into the State Road Fund for use by the Division of Highways in accordance with the provisions of this subdivision. The remainder of the commission shall be retained by the licensee.
Each dog racing licensee, when required by the provisions of this subdivision to pay a percentage of its commissions to the State Road Fund for use by the Division of Highways, shall transmit the required funds, in such manner and at such times as the commission shall by procedural rule direct, to the State Treasurer for deposit in the State Treasury to the credit of the Division of Highways State Road Fund. All funds collected and received in the State Road Fund pursuant to the provisions of this subdivision shall be used by the Division of Highways in accordance with the provisions of article seventeen-a, chapter seventeen of this code for the acquisition of right-of-way for, the construction of, the reconstruction of and the improvement or repair of any interstate or other highway, secondary road, bridge and toll road in the state. If on July 1, 1989, any area encompassing a dog racetrack has incorporated as a Class I, Class II or Class III city or as a Class IV town or village, whereas such city, town or village was not incorporated as on January 1, 1987, then on and after July 1, 1989, any balances in the State Road Fund existing as a result of payments made under the provisions of this subdivision may be used by the State Road Fund for any purpose for which other moneys in the fund may lawfully be used and in lieu of further payments to the State Road Fund, the licensee of a racetrack which is located in the municipality shall thereafter pay .30% of the pari-mutuel pools into the general fund of the municipality. If no incorporation occurs before July 1, 1989, then payments to the State Road Fund shall thereafter continue as provided under the provisions of this subdivision.
A dog racing licensee, before deducting the commissions authorized by this subdivision, shall give written notification to the commission not less than thirty days prior to any change in the percentage rates for the commissions. The commission shall prescribe blank forms for filing the notification. The notification shall disclose the following: (A) The revised commissions to be deducted from the pari-mutuel pools each day on win, place and show betting and on different forms of multiple bettings; (B) the dates to be included in the revised betting; and (C) such other information as may be required by the Racing Commission.
The licensee shall establish a special fund to be used only for capital improvements or long-term debt amortization or both: Provided, That any licensee, heretofore licensed for a period of eight years prior to the effective date of the amendment made to this section during the regular session of the Legislature held in 1987, shall establish the special fund to be used only for capital improvements or physical plant maintenance, or both, at the licensee's licensed facility or at the licensee's commonly owned racing facility located within this state. Deposits made into the funds shall be in an amount equal to 25% of the increased rate total over and above the applicable rate in effect as of January 1, 1987, of the pari-mutuel pools for the day. Any amount deposited into the funds must be expended or liability therefor incurred within a period of two years from the date of deposit. Any funds not expended shall be transferred immediately into the State General Fund after expiration of the two-year period.
The licensee shall make a deposit into a special fund established by the licensee and used for payment of regular purses offered for dog racing, which deposits out of the licensee's commissions for each day shall be 3.75% of the pari-mutuel pools.
The licensee shall further establish a special fund to be used exclusively for marketing and promotion programs; the funds shall be in an amount equal to five percent over and above the applicable rates in effect as of January 1, 1987, of the total pari-mutuel pools for the day.
The commission shall prepare and transmit annually to the Governor and the Legislature a report of the activities of the commission under this subdivision. The report shall include a statement of: The amount of commissions retained by licensees; the amount of taxes paid to the state; the amounts paid to municipalities, counties and the Division of Highways Dog Racing Fund; the amounts deposited by licensees into special funds for capital improvements or long-term debt amortization and a certified statement of the financial condition of any licensee depositing into the fund; the amounts paid by licensees into special funds and used for regular purses offered for dog racing; the amounts paid by licensees into special funds and used for marketing and promotion programs; and such other information as the racing commission may consider appropriate for review.
(c) In addition to any commission, a licensee of horse race or dog race meetings shall also be entitled to retain the legitimate breakage, which shall be made and calculated to the dime, and from the breakage, the licensee of a horse race meeting (excluding dog race meetings), shall deposit daily 50% of the total of the breakage retained by the licensee into the special fund created pursuant to the provisions of subdivision (1), subsection (b) of this section for the payment of regular purses.
(d) The director of audit, and any other auditors employed by the commission who are also certified public accountants or experienced public accountants, shall have free access to the space or enclosure where the pari-mutuel system of wagering is conducted or calculated at any horse or dog race meeting for the purpose of ascertaining whether or not the licensee is deducting and retaining only a commission as provided in this section and is otherwise complying with the provisions of this section. They shall also, for the same purposes only, have full and free access to all records and papers pertaining to the pari-mutuel system of wagering and shall report to the commission in writing, under oath, whether or not the licensee has deducted and retained any commission in excess of that permitted under the provisions of this section or has otherwise failed to comply with the provisions of this section.
(e) No licensee shall permit or allow any individual under the age of eighteen years to wager at any horse or dog racetrack, knowing or having reason to believe that the individual is under the age of eighteen years.
(f) Notwithstanding the foregoing provisions of subdivision (1), subsection (b) of this section, to the contrary, a thoroughbred licensee qualifying for and paying the alternate reduced tax on pari-mutuel pools provided in section fourteen of this article shall distribute the commission authorized to be deducted by subdivision (1), subsection (b) of this section as follows: (i) The licensee shall pay the alternate reduced tax provided in section fourteen of this article; (ii) the licensee shall pay .10% of the pari-mutuel pools into the general fund of the county commission of the county in which the racetrack is located, except if within a municipality, then to the Municipal General Fund; (iii) the licensee shall pay 50% of the remainder of the commission into the special fund established by the licensee and to be used for the payment of regular purses offered for thoroughbred racing by the licensee; and (iv) the licensee shall retain the amount remaining after making the payments required in this subsection.
(g) Each kennel which provides or races dogs owned or leased by others shall furnish to the commission a surety bond in an amount to be determined by the Commission to secure the payment to the owners or lessees of the dogs the portion of any purse owed to the owner or lessee.

§29-22H-14. Daily license tax; pari-mutuel pools tax; how taxes paid; alternate tax; credits.

(a) Any racing association conducting thoroughbred racing at any horse racetrack in this state shall pay each day upon which horse races are run a daily license tax of $250. Any racing association conducting harness racing at any horse racetrack in this state shall pay each day upon which horse races are run a daily license tax of $150. Any racing association conducting dog races shall pay each day upon which dog races are run a daily license tax of $150. In the event thoroughbred racing, harness racing, dog racing, or any combination of the foregoing are conducted on the same day at the same racetrack by the same racing association, only one daily license tax in the amount of $250 shall be paid for that day. Any daily license tax shall not apply to any local, county or state fair, horse show or agricultural or livestock exposition at which horse racing is conducted for not more than six days.
(b) Any racing association licensed by the commission to conduct thoroughbred racing and permitting and conducting pari-mutuel wagering under the provisions of this article shall, in addition to the daily license tax set forth in subsection (a) of this section, pay to the ~~Racing~~ commission, from the commission deducted each day by the licensee from the pari-mutuel pools on thoroughbred racing a tax calculated on the total daily contribution of all pari-mutuel pools conducted or made at any and every thoroughbred race meeting of the licensee licensed under the provisions of this article. The tax, on the pari-mutuel pools conducted or made each day during the months of January, February, March, October, November and December, shall be calculated at .40% of the pool; and, on the pari-mutuel pools conducted or made each day during all other months, shall be calculated at 1.40% of the pool: Provided, That out of the amount realized from the .30% decrease in the tax effective for fiscal year 1991 and thereafter, which decrease correspondingly increases the amount of commission retained by the licensee, the licensee shall annually expend or dedicate: (i) 50% of the realized amount for capital improvements in its barn area at the track, subject to the Racing Commission's prior approval of the plans for the improvements; and (ii) the remaining 50% of the realized amount for capital improvements as the licensee may determine appropriate at the track: Provided, however, That any racing association operating a horse racetrack in this state having an average daily pari-mutuel pool on horse racing of $280,000 or less per day for the race meetings of the preceding calendar year shall, in lieu of payment of the pari-mutuel pool tax, calculated as in this subsection, be permitted to conduct pari-mutuel wagering at the horse racetrack on the basis of a daily pari-mutuel pool tax fixed as follows: On the daily pari-mutuel pool not exceeding $300,000 the daily pari-mutuel pool tax shall be $1,000 plus the otherwise applicable percentage rate imposed by this subsection of the daily pari-mutuel pool, if any, in excess of $300,000: Provided further, That upon the effective date of the reduction of the daily pari-mutuel pool tax to $1,000 from the former $2,000, the association or licensee shall daily deposit $500 into the special fund for regular purses established by subdivision (1), subsection (b), section nine of this article: And provided further, That if an association or licensee qualifying for the foregoing alternate tax conducts more than one racing performance, each consisting of up to thirteen races in a calendar day, the association or licensee shall pay both the daily license tax imposed in subsection (a) of this section and the alternate tax in this subsection for each performance: And provided further, That a licensee qualifying for the foregoing alternate tax is excluded from participation in the fund established by section twenty-two of this article: And provided further, That this exclusion shall not apply to any thoroughbred racetrack at which the licensee has participated in the West Virginia thoroughbred development fund for more than four consecutive years prior to December 31, 1992. (c) Any racing association licensed by the commission to conduct harness racing and permitting and conducting pari-mutuel wagering under the provisions of this article shall, in addition to the daily license tax required under subsection (a) of this section, pay to the commission, from the commission deducted each day by the licensee from the pari-mutuel pools on harness racing, as a tax, 3% of the first $100,000 wagered, or any part thereof; 4% of the next $150,000; and 5.75% of all over that amount wagered each day in all pari-mutuel pools conducted or made at any and every harness race meeting of the licensee licensed under the provisions of this article.
(d) Any racing association licensed by the commission to conduct dog racing and permitting and conducting pari-mutuel wagering under the provisions of this article shall, in addition to the daily license tax required under subsection (a) of this section, pay to the commission, from the commission deducted each day by the licensee from the pari-mutuel pools on dog racing, as a tax, 4% of the first $50,000 or any part thereof of the pari-mutuel pools, 5% of the next $50,000 of the pari-mutuel pools, 6% of the next $100,000 of the pari-mutuel pools, 7% of the next $150,000 of the pari-mutuel pools, and 8% of all over $350,000 wagered each day: Provided, That the licensee shall deduct daily from the pari- mutuel tax an amount equal to .10% of the daily pari-mutuel pools in dog racing in fiscal year 1990; .15% in fiscal year 1991; .20% in fiscal year 1992; .25% in fiscal year 1993; and .30% in fiscal year 1994 and every fiscal year thereafter. The amounts deducted shall be paid to the commission to be deposited by the commission in a banking institution of its choice in a special account to be known as "West Virginia Gaming and Racing Control Commission- Special Account-West Virginia Greyhound Breeding Development Fund". The purpose of the fund is to promote better breeding, training track facilities and racing of greyhounds in the state through awards and purses to bona fide resident registered greyhound owners of accredited West Virginia whelped greyhounds. In order to participate and be eligible to receive an award or purse through the fund, the registered greyhound owner must have an appropriate license from the commission to race in West Virginia. The registered greyhound dam at the time of breeding must be wholly or solely owned or leased by a bona fide resident or residents of West Virginia. The accredited West Virginia whelped greyhound must be wholly or solely owned by a bona fide resident or residents of this state. To qualify as a bona fide resident of West Virginia, a registered greyhound owner may not claim residency in any other state. A registered greyhound owner must prove bona fide residency by providing to the commission personal income tax returns filed in the State of West Virginia for the most recent tax year and the three previous tax years, has real or personal property in this state on which the owner has paid real or personal property taxes during the most recent tax year and the previous three tax years and an affidavit stating that the owner claims no other state of residency. The commission and the West Virginia Greyhound Breeder shall maintain a registry for West Virginia bred greyhounds. The West Virginia Greyhound Breeders Association shall submit a list of additions or deletions ro the registry of accredited West Virginia whelped greyhounds on the first of each month. The moneys shall be expended by the commission for purses for stake races, training track facilities, supplemental purse awards, administration, promotion and educational programs involving West Virginia whelped dogs, owned by residents of this state under rules promulgated by the commission. The commission shall pay out of the greyhound breeding development fund to each of the licensed dog racing tracks the sum of $75,000 for the fiscal year ending June 30, 1994. The licensee shall deposit the sum into the special fund for regular purses established under the provisions of section thirteen of this article. The funds shall be expended solely for the purpose of supplementing regular purses under rules promulgated by the commission.
Supplemental purse awards will be distributed as follows: Supplemental purses shall be paid directly to the registered greyhound owner of an accredited greyhound.
The registered greyhound owner of accredited West Virginia whelped greyhounds that earn points at any West Virginia meet will receive a bonus award calculated at the end of each month as a percentage of the fund dedicated to the owners as purse supplements, which shall be a minimum of 50% of the total moneys deposited into the West Virginia Greyhound Breeding Development fund monthly.
The total amount of the fund available for the owners' awards shall be distributed according to the ratio of points earned by an accredited greyhound to the total amount earned in races by all accredited West Virginia whelped greyhounds for that month as a percentage of the funds dedicated to the owners' purse supplements. The point value at all greyhound tracks shall be the same as approved by the commission to be effective April 1, 2007. The West Virginia Greyhound Owners and Breeders Association shall submit a list of any additions or deletions to the registry of accredited West Virginia whelped greyhounds on the first of each month. The commission may not require anyone to be a member of a particular association in order to participate in the West Virginia Greyhound Breeding Development Fund.
The registered greyhound owner of an accredited West Virginia whelped greyhound shall file a purse distribution form with the commission for a percentage of his or her dog's earnings to be paid directly to the registered greyhound owner or owners of the greyhound. Distribution shall be made on the fifteenth day of each month for the preceding month's achievements.
In no event shall points earned at a meet held at a track which did not make contributions to the West Virginia Greyhound Breeding Development Fund out of the daily pool on the day the meet was held qualify or count toward eligibility for supplemental purse awards.
Any balance in the purse supplement funds after all distributions have been made for the year revert to the general account of the fund for distribution in the following year: Provided, That not more than $2 million from the balance in the purse supplemental fund shall be used for the construction and maintenance of two dog training track facilities if such be approved by the commission: Provided, however, That not more than $1 million may be allocated for the construction and maintenance of each training track: Provided further, That both training track facilities must be located in West Virginia. The shall be authorized to promulgate rules governing dog training tracks: And provided further, That the commission shall (1) provide a process in its rules for competitive bidding of the construction or maintenance, or both, of the training tracks, and (2) set standards to assure that only the actual costs of construction and maintenance shall be paid out of the foregoing fund.
In an effort to further promote the breeding of quality West Virginia whelped greyhounds, a bonus purse supplement shall be established in the amount of $50,000 per annum, to be paid in equal quarterly installments of $12,500 per quarter using the same method to calculate and distribute these funds as the regular supplemental purse awards. This bonus purse supplement is for three years only, commencing on July 1, 1993, and ending June 30, 1996. This money would come from the current existing balance in the greyhound development fund.
Each pari-mutuel greyhound track shall provide stakes races for accredited West Virginia whelped greyhounds: Provided, That each pari-mutuel track shall have one juvenile and one open stake race annually. Each pari-mutuel dog track shall provide at least three restricted races for accredited West Virginia whelped greyhounds per race card: Provided, however, That sufficient dogs are available. To assure breeders of accredited West Virginia whelped greyhounds an opportunity to participate in the West Virginia Greyhound Breeding Development Fund the commission by July 1 each year shall establish and announce the minimum number of accredited West Virginia whelped greyhounds that greyhound racing kennels at West Virginia dog tracks must have on their racing active list during the calendar year following such action. The minimum number may vary from dog track to dog track. The minimum number shall be established after consultation with the West Virginia Greyhound Owners and Breeders Association and kennel owners and operators. Factors to be considered in establishing this minimum number shall be the number of individually registered accredited West Virginia whelped greyhounds whelped in the previous two years. The number of all greyhounds seeking qualification at each West Virginia dog track, the ratio of active running greyhounds to housed number of greyhounds at each West Virginia dog track, and the size and number of racing kennels at each West Virginia dog track. Any greyhound racing kennel not having the minimum number of accredited West Virginia whelped greyhounds determined by the commission on their active list shall only be permitted to race the maximum allowable number on the active list less the number of accredited West Virginia whelped greyhounds below the established minimum number. Consistent violations of this minimum requirement may be reviewed by the commission and may constitute cause for denial or revocation of a kennel's racing license. The commission shall oversee and approve racing schedules and purse amounts.
10% of the deposits into the greyhound breeding development fund beginning July 1, 1993 and continuing each year thereafter, shall be withheld by the commission and placed in a special revenue account hereby created in the State Treasury called the "administration, promotion and educational and capital improvement account". The commission is authorized to expend the moneys deposited in the administration, promotion and educational and capital improvement account at such times and in such amounts as the commission determines to be necessary for purposes of administering and promoting the greyhound development program: Provided, That beginning with fiscal year 1995 and in each fiscal year thereafter in which the commission anticipates spending any money from the account, the commission shall submit to the executive department during the budget preparation period prior to the Legislature convening before that fiscal year for inclusion in the executive budget document and budget bill, the recommended expenditures, as well as requests of appropriations for the purpose of administration, promotion and education. The commission shall make an annual report to the Legislature on the status of the administration, promotion and education account, including the previous year's expenditures and projected expenditures for the next year.
The commission, for the fiscal year 1994 only, may expend up to $35,000 from the West Virginia greyhound breeding development fund to accomplish the purposes of this section without strictly following the requirements in the previous paragraph.
(e) All daily license and pari-mutuel pools tax payments required under the provisions of this section shall be made to the commission or its agent after the last race of each day of each horse or dog race meeting, and the pari-mutuel pools tax payments shall be made from all contributions to all pari-mutuel pools to each and every race of the day.
(f) Every association or licensee subject to the provisions of this article, including the changed provisions of sections thirteen and fourteen of this article, shall annually submit to the commission and the Legislature financial statements, including a balance sheet, income statement, statement of change in financial position and an audit of any electronic data system used for pari- mutuel tickets and betting, prepared in accordance with generally accepted auditing standards, as certified by an experienced public accountant or a certified public accountant.

§29-22H-15. Revenues from horse racing and dog racing to be paid into a special account to fund commission expenses.

(a) All revenues collected pursuant to the provisions of this article as license taxes or pari-mutuel pools taxes on horse racing and dog racing and money retained by the commission as reasonable security for the costs of a hearing pursuant to subsection (g), section thirty-one of this article shall be paid by the commission to the State Treasurer who shall deposit the revenues in the nonappropriated special account created in section eight-a, article twenty-two, chapter twenty-nine of this code.
(b) The revenues in the special account shall first be available to the commission to pay salaries and other expenses for the Gaming and Racing Control Agency. On the last day of each fiscal year, unencumbered and undesignated funds from the deposits required by this section that remain in the nonappropriated special account in the excess of $250,000 shall be transferred to the General Revenue Fund.
(c) The commission shall remit all collected racing revenues to the State Treasurer at least one time during each thirty-day period of each racing season, and a final remittance as to any particular horse race or dog race meeting shall be made within thirty days from and after the close of each horse race or dog race meeting.

§29-22H-16. License to be in lieu of all other license.

No county, or municipality or other political subdivision of this state may levy or impose any license, income, pari-mutuel, excise, special or franchise tax on any licensed racing association or on the operation or maintenance of the pari-mutuel system of wagering, or on the sale of any commodity during a horse or dog race meeting at which horse or dog races are run, or at any horse or dog racetrack nor shall there be, hereafter, any imposition of tax pursuant to articles twelve, thirteen or fifteen of chapter eleven of this code on the income or receipts of owners, trainers or jockeys directly arising from their services which are essential to the effective conduct of a horse or dog racing meeting: Provided, That the foregoing provisions of this section do not affect, abridge or abolish the authority of a municipality to impose the license tax authorized by the provisions of section eight, article thirteen, chapter eight of this code.

§29-22H-17. Pari-mutuel wagering on interstate and intrastate horse and dog racing.

(1) A licensed racing association may, with the consent of the commission and the written approval of the authorized representative of a majority of the permitted owners and trainers at the horse racetrack, contract with any legal wagering entity in this or any other state to accept wagers on any race. Unless the wager becomes part of the host licensee's pari-mutuel pool, the wagering shall be conducted within the confines of the licensee's racetrack or at a hotel as defined in section three, article six, chapter sixteen of this code, controlled by the licensee and contiguous to the licensee's property, subject to the following requirements:
(A) That the hotel contain at least one hundred rooms and be in existence on the effective date of this section;
(B) That the licensee shall have invested at least $1,000,000 in the hotel; and
(C) That the hotel is within one-half mile of the licensee's racetrack surface.
(2) The horse association shall retain a deduction not to exceed 17.25% of all money wagered, plus an additional amount equal to 1.75% of the amount wagered each day on all multiple wagers determined by a combination of two winning horses, including, but not limited to, the daily double, quinella and perfecta or plus an additional amount equal to 7.75% of the amount wagered each day on all trifecta wagers or any other multiple wager which involves a single betting interest on three or more horses. Breakage shall be calculated and distributed in the manner provided by subsection (c), section thirteen of this article.
(3) The deduction by any licensee from the pari-mutuel pools on dog racing may not exceed 16.25% of the total of the pari-mutuel pools for the day.
(4) Out of the deduction under the provisions of subsections (2) and (3) of this section, the licensee shall pay .10% into the general fund of the county commission of the county in which the racetrack is located, except if within a municipality, then to the municipality's general fund.
(5) The association shall pay each day a pari-mutuel pools tax calculated under the provisions of section fourteen of this article.
(6) After deducting the county or municipal share provided for in subsection (4) of this section and the pari-mutuel pools tax required by subsection (5) of this section, and the amount required to be paid under the terms of the contract with the legal wagering entity of this or another state and the cost of transmission, the horse racing association shall make a deposit equal to 50% of the remainder into the purse fund established under the provisions of subdivision (b), subsection (1), section thirteen of this article.
(7) All of the provisions of the "Federal Interstate Horseracing Act of 1978," also known as Public Law 95-515, section 3001-3007 of title 15, U.S. Code, shall be instructive as the intent of this section.

§29-22H-18. Televised racing days; merging of pari-mutuel wagering pools.

(a) A licensee conducting not less than two hundred twenty live racing dates for each horse or dog race meeting may, with the prior approval of the commission, contract with any legal wagering entity in this state or in any other governmental jurisdiction to receive telecasts and accept wagers on races conducted by the legal wagering entity: Provided, That at those thoroughbred racetracks the licensee, in applying for racing dates, shall apply for not less than two hundred ten live racing dates for each horse race meeting.
(b) If, for reasons beyond the licensee's control, related to adverse weather conditions, unforeseen casualty occurrences or a shortage of thoroughbred horses eligible to compete for purses, the licensee concludes that this number of racing days cannot be attained, the licensee may file a request with the commission to reduce the authorized live racing dates. Upon receipt of the request the commission shall within seventy-two hours of the receipt of the request notify the licensee and the representative of a majority of the owners and trainers at the requesting track and the representative of the majority of the mutuel clerks at the requesting track that the request has been received and that if no objection to the request is received within ten days of the notification the request will be approved.
(c) The commission shall give consideration to whether there existed available unscheduled potential live racing dates following the adverse weather or casualty and prior to the end of the race meeting which could be used as new live racing dates in order to maintain the full live racing schedule previously approved by the commission.
(d) If an objection is received by the commission within the time limits, the commission shall, within thirty days of receipt of the objection, set a hearing on the question of reducing racing days, which hearing shall be conducted at a convenient place in the county in which the requesting racetrack is located. The commission shall hear from all parties concerned and, based upon testimony and documentary evidence presented at the hearing, shall determine the required number of live racing dates.
(e) The commission may not reduce the number of live racing dates below one hundred eighty-five days for a horse race meeting unless the licensee requesting the reduction has:
(1) Filed with the commission a current financial statement, which shall be subject to independent audit; and
(2) Met the burden of proving that just cause exists for the requested reduction in live racing dates.
(f) The telecasts may be received and wagers accepted at any location authorized by the provisions of section seventeen of this article. The contract must receive the approval of the representative of the majority of the permitted owners and trainers at the receiving thoroughbred racetrack.
(g) The commission may allow the licensee to commingle its wagering pools with the wagering pools of the host racing association. If the pools are commingled, the wagering at the licensee's racetrack must be on tabulating equipment capable of issuing pari-mutuel tickets and be electronically linked with the equipment at the sending racetrack. Subject to the approval of the commission, the types of betting, licensee commissions and distribution of winnings on pari-mutuel pools of the sending licensee racetrack are those in effect at the licensee racetrack. Breakage for pari-mutuel pools on a televised racing day must be calculated in accordance with the law or rules governing the sending racetrack and must be distributed in a manner agreed to between the licensee and the sending racetrack. For the televised racing services it provides, the host racing association shall receive a fee to be paid by the receiving licensee racetrack which shall be in an amount to be agreed upon by the receiving licensee racetrack and the host racing association.
(h) The commission may assign televised racing days at any time. When a televised racing day is assigned, the commission shall assign either a steward or an auditor to preside over the televised races at the licensee racetrack.
(h) (1) From the licensee deductions authorized by subsection (g) of this section, the licensee shall pay .10% of each deduction into the general fund of the county, in which the racetrack is located and at which the wagering occurred and there is imposed and the licensee shall pay, for each televised racing day on which the total pari-mutuel pool exceeds $100,000, the greater of either:
(A) The total of the daily license tax and the pari-mutuel pools tax required by section ~~ten~~ fourteen of this article; or
(B) A daily license tax of $1,250.
For each televised racing day on which the total pari-mutuel pool is $100 or less, the licensee shall pay a daily license tax of $500 plus an additional license tax of $100 for each $10,000, or part thereof, that the pari-mutuel pool exceeds $50,000, but does not exceed $100,000. The calculation of the total pari-mutuel pool for purposes of this subsection shall include only 50% of all wagers placed at a licensed racetrack in this state on televised races conducted at another licensed racetrack within this state. Payments of the tax imposed by this section are subject to the requirements of subsection (e), section fourteen of this article.
(2) From the licensee's deductions authorized by subsection (g) of this section, after payments are made in accordance with the provisions of subdivision (1) of this subsection, the licensee shall pay, for each televised racing day, .25% of the total pari-mutuel pools for and on behalf of all employees of the licensed racing association by making a deposit into a special fund to be established by the commission and to be used for payments into the pension plan for all employees of the licensed racing association.
(3) From the licensee's deduction authorized by subsection (g) of this section, after payments are made in accordance with the provisions of subdivisions (1) and (2) of this subsection, thoroughbred licensees shall pay, .50% of net simulcast income and for each televised racing day on or after the July 1, 1997, an additional 5.5% of net simulcast income into the West Virginia thoroughbred development fund established by the commission according to twenty-two of this article: Provided, That no licensee qualifying for the alternate tax provisions of subsection (b), section fourteen of this article shall be required to make the payments unless the licensee has participated in the West Virginia thoroughbred development fund for a period of more than four consecutive calendar years prior to the December 31, 1992.
(i) After deducting the tax and other payments required by subsection (h) of this section, the amount required to be paid under the terms of the contract with the host racing association and the cost of transmission, the horse racing association shall make a deposit equal to 50% of the remainder into the purse fund established under the provisions of subdivision (1), subsection (b), section thirteen of this article. After deducting the tax and other payments required by subsection (h) of this section, dog racetracks shall pay an amount equal to .20% of the daily simulcast pari-mutuel pool to the "West Virginia Gaming and Racing Control Commission Special Account-West Virginia Greyhound Breeding Development Fund".
(j) The provisions of the "Federal Interstate Horseracing Act of 1978", also known as Public Law 95-515, Section 3001-3007 of Title 15, U.S. Code, as amended, controls in determining the intent of this section.
§29-22H-19. Interstate simulcasts by licensed racetracks.
(a) Any licensed racing association may be authorized by the commission to transmit broadcasts of races conducted at its racetrack to legal wagering entities located outside this state, which legal wagering entities located outside this state are not be subject to the provisions of subsection (h), section eighteen of this article:
As consideration for the televised racing services it provides, the host racing association shall receive a signal transmission fee to be paid by the receiving legal wagering entity which shall be in an amount agreed upon by the receiving legal wagering entity and the host racing association. All broadcasts of horse races shall be in accordance with all of the provisions of the "Federal Interstate Horseracing Act of 1978," also known as Public Law 95-515, Section 3001-3007 of Title 15 of the United States Code.
(c) 1% of the total signal transmission fee provided in subsection (a) of this section shall be paid into a special fund to be established by the commission for and on behalf of all employees of the licensed racing association to be used for payments into the pension plan for all employees of the licensed racing association, and any thoroughbred horse racetrack which has participated in the West Virginia thoroughbred development fund for a period of more than four consecutive calendar years prior to December 31, 1992, shall pay 7.5% of the signal transmission fee into the West Virginia thoroughbred development fund established by the commission according to section twenty-two of this article. After deducting:
(1) The amounts required to be placed into the pension plan for all employees of the licensed racing association under this section;
(2) The amounts, if any, required to be paid into the West Virginia thoroughbred development fund under this section; and
(3) The direct costs necessary to send a live audio and visual signal of horse races or dog races from any racetrack licensed under the provisions of section one of this article to any legal wagering entities outside this state for the purpose of pari-mutuel wagering, which direct costs shall include the cost of satellite equipment necessary to transmit the signal, a satellite operator and the satellite time necessary to broadcast the signal and the cost of telecommunication and facsimile services needed to communicate necessary information to all legal wagering entities for the purpose of pari-mutuel wagering, thoroughbred horseracing associations shall make a deposit equal to 50% of the remainder into the purse fund established under the provisions of subdivision (1), subsection (b), section thirteen of this article: Provided, That the funds deposited in the purse fund pursuant to this section may be used for the payment of regular purses or, upon agreement between the horse racing association and the representative of the majority of owners and trainers at a particular thoroughbred racetrack, may be used for capital improvements supporting simulcast operations.

§29-22H-20. Disposition of funds for payment of outstanding and unredeemed pari-mutuel tickets.

(a) All moneys held by any licensee for the payment of outstanding and unredeemed pari-mutuel tickets, if not claimed within ninety days after the close of a horse or dog race meeting or the televised racing day, in connection with which the tickets were issued, shall be turned over by the licensee to the commission within fifteen days after the expiration of the ninety-day period, and the licensee shall give any information required by the commission concerning the outstanding and unredeemed tickets. The moneys shall be deposited by the commission in a nonappropriated special account in the State Treasury to be known as "West Virginia Gaming and Racing Control Commission Special Account - Unredeemed Pari-Mutuel Tickets." The commission shall publish a notice to the holders of the outstanding and unredeemed pari-mutuel tickets, notifying them to present their unredeemed tickets for payment at the principal office of the commission within ninety days from the date of the publication of the notice. The notice shall be published within fifteen days following the receipt of the outstanding and unredeemed pari-mutuel ticket moneys by the commission from the licensee as a Class I 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 horse or dog race meeting was held and the county in which the televised racing day wagering was conducted in this state.
(b) Any outstanding and unredeemed pari-mutuel tickets that are not presented for payment within ninety days from the date of the publication of the notice are irredeemable, and the moneys held for the redemption of the pari-mutuel tickets shall become the property of the commission and shall be expended from collections as provided in this subsection. The commission shall maintain separate accounts for each licensee and shall record in each separate account the moneys turned over by the licensee and the amount expended at the licensee's track for the purposes set forth in this subsection. The moneys in the Gaming and Racing Control Commission special account - unredeemed pari-mutuel tickets shall be expended as follows:
(1) To the owner of the winning horse in any horse race at a horse race meeting held or conducted by any licensee: Provided, That the owner of the horse is at the time of the horse race a bona fide resident of this state, a sum equal to 10% of the purse won by the horse at that race: Provided, however, That in the event there are more than ten races in any performance, the award to the resident owner of the winning horse will be that fractional share of the purse with a numerator of one and a denominator representing the number of races on the day of the performance. The commission may require proof that the owner was, at the time of the race, a bona fide resident of this state. Upon proof by the owner that he or she filed a personal income tax return in this state for the previous two years and that he or she owned real or personal property in this state and paid taxes in this state on real or personal property for the previous two years, he or she shall be presumed to be a bona fide resident of this state; and
(2) To the breeder (the owner of the mare) of the winning horse in any horse race at a horse race meeting conducted by any licensee: Provided, That the mare foaled in this state, a sum equal to 10% of the purse won by the horse: Provided, however, That in the event there are more than ten races in any performance, the award to the breeder will be that fractional share of the purse with a numerator of one and a denominator representing the number of races on the day of the performance; and
(3) To the owner of the stallion which sired the winning horse in any horse race at a horse race meeting held or conducted by any licensee: Provided, That the mare which foaled the winning horse was served by a stallion standing and registered in this state, a sum equal to 10% of the purse won by the horse: Provided, however, That in the event there are more than ten races in any performance, the award to the owner of the stallion will be percentage of the purse based upon the fractional share represented by the number of races on the day of the performance; and
(4) To those horse racing licensees not participating in the thoroughbred development fund authorized in section twenty-two of this article, the unexpended balance of the licensee's account not expended as provided in subdivisions (1), (2) and (3) of this subsection: Provided, That all moneys distributed under this subdivision shall be expended solely for capital improvements at the licensee's track: Provided, however, That the capital improvements must be approved, in writing, by the commission before funds are expended by the licensee for that capital improvement; and
(5) When the moneys in the special account, known as the Stage Gaming and Racing Control Commission special account - unredeemed pari-mutuel tickets will more than satisfy the requirements of subdivisions (1), (2), (3) and (4)of this subsection, the commission shall have the authority to expend the excess moneys from unredeemed horse racing pari-mutuel tickets purse money in any race conditioned exclusively for West Virginia bred or sired horses, and to expend the excess moneys from unredeemed dog racing pari-mutuel tickets in supplementing purses and establishing stake races and dog racing handicaps at the dog tracks: Provided, That subject to the availability of funds, the commission shall, after the requirements of subdivisions (1), (2), (3) and (4) of this subsection have been satisfied:
(A) Transfer annually $200,000 to the Gaming and Racing Control Commission special account - West Virginia greyhound breeding development fund;
(B) Transfer annually $200,000 into a separate account to be used for stakes races for West Virginia bred greyhounds at dog racetracks; and
(C) Transfer annually $200,000 to a trust maintained and administered by the organization which is recognized by the commission, pursuant to a legislative rule, as the representative of the majority of the active jockeys in West Virginia, for the purpose of providing health and disability benefits to eligible active or disabled West Virginia jockeys and their dependents in accordance with eligibility criteria established by the organization. For purposes of this section in determining health benefits, an eligible active jockey is one who rides at least one hundred mounts per calendar year of which fifty-one must be in the State of West Virginia: Provided, That a jockey is not eligible for health benefits if he or she receives health benefits from any other state; and
(D) After all payments to satisfy the requirements of (A), (B) and (C) subdivisions (1), (2), (3), (4), and (5), subsection (b) of this section have been satisfied, the commission shall have authority to transfer $150,000 left from all uncashed pari-mutuel tickets to the trust maintained and administered by the organization which is recognized by the commission, pursuant to legislative rule, as the representative of the majority of the active jockeys in West Virginia.
(c) The commission shall submit to the legislative auditor a quarterly report and accounting of the income, expenditures and unobligated balance in the special account created by this section known as the Gaming and Racing Control Commission special account - unredeemed pari-mutuel tickets.
(d) Nothing contained in this article may be construed to prohibit one person from qualifying for all or more than one of the aforesaid awards or for awards under section twenty-two of this article.
(e) The cost of publication of the notice provided for in this section shall be paid from the funds in the hands of the State Treasurer collected from the pari-mutuel pools' tax provided for in section fourteen of this article, when not otherwise provided in the budget; but no costs may be paid unless an itemized account, under oath, is first filed with the State Auditor.
§29-22H-21. West Virginia bonus race fund.
(a) A licensed association conducting horse race meetings may establish at its track a special fund to be known as the "Bonus Race Fund".
(b) The fund shall be established only if written approval is given by the duly authorized representative of a majority of the permitted owners and trainers at the horse racetrack and by the authorized agent of the association.
(c) The association shall deposit each day, into the fund an amount equal to .10% of the total daily pari-mutuel pool or pools, which sum shall be appropriated from the special purse fund established in subsection (b) (1), section thirteen of this article. In addition, the association shall, from the commission retained by the association under the provisions of ~~said~~ the section ~~nine~~ thirteen of this article, deposit into the "Bonus Race Fund" the following sums: Each day an amount equal to 1% of the total daily pari-mutuel pool.
(d) To be eligible to participate in purses to be paid from the proceeds of this fund, each horse must be registered with the West Virginia Thoroughbred Breeders Association, under the authority and oversight of the commission. To qualify for registration the horse must have been foaled in West Virginia or sired by a stallion standing in West Virginia or both.
(1) A horse is bred where it is foaled. The breeder is the owner of the dam at the time of foaling.
(2) To be considered a West Virginia stallion, it is required that he be in West Virginia for at least one full breeding season, the first six months of a year, or if the stallion is brought in subsequent to the start of the breeding season, he must be approved as a West Virginia stallion by the West Virginia thoroughbred Breeders Association, under the authority and oversight of the commission.
(e) At each horse racetrack at which the fund is created, the funds shall be administered by a committee comprised of the following members:
(1) Two elected members of the West Virginia thoroughbred breeders association,
(2) One elected member of the local horsemen's benevolent protective association,
(3) The general manager of the local track or his representative and
(4) A member of the commission or someone designated by the commission.
(f) Any owner or breeder may appeal to the Gaming and Racing Control Commission any decision of the the West Virginia Thoroughbred Breeders Association concerning registration of a horse. The decision of the commission is final.
(g) The powers and authority of the commission established under the provisions of section six of this article are extended to supervision of the fund created by this section and to the promulgation of rules for implementing and making effective the provisions of this section.

§29-22H-22. West Virginia Thoroughbred Development Fund.

(a) The commission shall deposit moneys required to be withheld by a racing association or licensee in subsection (b), section thirteen of this article in State Treasury in a nonappropriated special account to be known as "West Virginia Gaming and Racing Control Commission Special Account -- West Virginia Thoroughbred Development Fund". The commission shall divide moneys between the West Virginia Thoroughbred Development Fund and the West Virginia Greyhound Breeding Development Fund pursuant to the provisions of sections ten and ten-b, article twenty-two-a, chapter twenty-nine of this code. The commission shall deposit the remaining moneys required to be withheld from an association or licensee designated to the Thoroughbred Development Fund under the provisions of subsection (b), section thirteen of this article, subdivision (3), subsection (e), section eighteen of this article, subsection (b), section nineteen of this article, paragraph (B), subdivision (3), subsection (b), section twenty- three of this article and sections ten and ten-b, article twenty-two-a, chapter twenty-nine of this code into accounts for each thoroughbred racetrack licensee in the State Treasury with a separate account for each association or licensee. Each separate account shall be a special account to be known as "West Virginia Gaming and Racing Control Commission Special Account - West Virginia Thoroughbred Development Fund" and shall name the licensee for which the special account has been established. Provided, however, That the commission shall deposit all moneys paid into the Thoroughbred Development Fund by a thoroughbred racetrack licensee that did not participate in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992 from the July 8, 2005 until September 13, 2005, shall be paid into the purse fund of that thoroughbred racetrack licensee. Provided further, That The moneys paid into the Thoroughbred Development Fund by a thoroughbred racetrack licensee that did not participate in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992, shall be transferred into that licensee's purse fund until the first day of April 1, 2006. Notice of the amount, date and place of the deposits shall be given by the commission, in writing, to the State Treasurer. The purpose of the funds is to promote better breeding and racing of thoroughbred horses in the state through awards and purses for accredited breeders/raisers, sire owners and thoroughbred race horse owners. And provided further, That 5% of the deposits required to be withheld by an association or licensee in subsection (b), section thirteen of this article shall be placed in a nonappropriated special account continued in the State Treasury called the "Administration and Promotion Account".
(b) The commission is authorized to expend the moneys deposited from collections in the administration and promotion account at times and in amounts as the Commission determines to be necessary for purposes of administering and promoting the thoroughbred development program. The commission shall make an annual report to the Legislature on the status of the administration and promotion account, including the previous year's expenditures and projected expenditures for the next year.
(c) The fund or funds and the account or accounts established in subsection (a) of this section shall operate on an annual basis.
(d) Funds in the Thoroughbred Development Fund or funds in the separate accounts for each association or licensee as provided in subsection (a) of this section shall be expended for awards and purses except as otherwise provided in this section. Annually, the first $800,000 shall be available for distribution for a minimum of fourteen accredited stakes races at a racetrack which has participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to the December 31, 1992. The weights for all accredited stakes races shall be allowance conditions. One of the stakes races shall be the West Virginia Futurity and the second shall be the Frank Gall Memorial Stakes. For the purpose of participating in the West Virginia Futurity only, all mares, starting with the breeding season beginning February 1 through the July 31, 2004, and each successive breeding season thereafter shall be bred back that year to an accredited West Virginia stallion only which is registered with the West Virginia Thoroughbred Breeders Association under the authorization and oversight of the commission: Provided, That beginning with the West Virginia Futurity of 2012, the prodigy must have been sired by an accredited West Virginia sire. The accredited stake races shall be chosen by the committee set forth in subsection (f) of this section.
(e) Awards and purses shall be distributed as follows:
(1) The breeders/raisers of accredited thoroughbred horses that earn a purse at a participating West Virginia meet shall receive a bonus award calculated at the end of the year as a percentage of the fund dedicated to the breeders/raisers, which shall be 60% of the fund available for distribution in any one year. The total amount available for the breeders'/raisers' awards shall be distributed according to the ratio of purses earned by an accredited race horse to the total amount earned in the participating races by all accredited race horses for that year as a percentage of the fund dedicated to the breeders/raisers. However, no breeder/raiser may receive from the fund dedicated to breeders'/raisers' awards an amount in excess of the earnings of the accredited horse at West Virginia meets. In addition, should a horse's breeder and raiser qualify for the same award on the same horse, they will each be awarded 50% of the proceeds. The bonus referred to in this subdivision may only be paid on the first $100,000 of any purse and not on any amounts in excess of the first $100,000.
(2) The owner of an accredited West Virginia sire of an accredited thoroughbred horse that earns a purse in any race at a participating West Virginia meet shall receive a bonus award calculated at the end of the year as a percentage of the fund dedicated to sire owners, which shall be 15% of the fund available for distribution in any one year. The total amount available for the sire owners' awards shall be distributed according to the ratio of purses earned by the progeny of accredited West Virginia stallions in the participating races for a particular stallion to the total purses earned by the progeny of all accredited West Virginia stallions in the participating races. However, no sire owner may receive from the fund dedicated to sire owners an amount in excess of 35% of the accredited earnings for each sire. The bonus referred to in this subdivision shall only be paid on the first $100,000 of any purse and not on any amounts in excess of the first $100,000.
(3) The owner of an accredited thoroughbred horse that earns a purse in any participating race at a West Virginia meet shall receive a restricted purse supplement award calculated at the end of the year, which shall be 25% of the fund available for distribution in any one year, based on the ratio of the earnings in the races of a particular race horse to the total amount earned by all accredited race horses in the participating races during that year as a percentage of the fund dedicated to purse supplements. However, the owners may not receive from the fund dedicated to purse supplements an amount in excess of 35% of the total accredited earnings for each accredited race horse. The bonus referred to in this subdivision shall only be paid on the first $100,000 of any purse and not on any amounts in excess of the first $100,000.
(4) In no event may purses earned at a meet held at a track which did not make a contribution to the Thoroughbred Development Fund out of the daily pool on the day the meet was held qualify or count toward eligibility for an award under this subsection.
(5) Any balance in the breeders/raisers, sire owners and purse supplement funds after yearly distributions shall first be used to fund the races established in subsection (f) of this section. Any amount not so used shall revert into the general account of the Thoroughbred Development Fund for each racing association or licensee for distribution in the next year.
Distribution shall be made on each February 15 for the preceding year's achievements.
(f)(1) Each pari-mutuel thoroughbred horse track shall provide at least three restricted races per racing day: Provided, That sufficient horses and funds are available. For purposes of this subsection, there are sufficient horses if there are at least seven single betting interests received for the race: Provided further, That, if sufficient horses and funds are available, any thoroughbred horse racetrack whose licensee participated in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992, shall provide three restricted races per racing day, at least one of which may be split at the discretion of the director. The restricted race required by this section must be included in the first nine races written in the condition book for that racing day.
(2) The restricted races established in this subsection shall be administered by a three-member committee at each track consisting of:
(A) The director or his or her designee;
(B) A member appointed by the authorized representative of a majority of the owners and trainers at the thoroughbred track; and
(C) A member appointed by the West Virginia Thoroughbred Breeders Association.
(3) Restricted races shall be funded by each racing association from:
(A) Moneys placed in the general purse fund: Provided, That a thoroughbred horse racetrack which did not participate in the West Virginia Thoroughbred Development fund for a period of more than four consecutive years prior to December 31, 1992, may fund restricted races in an amount not to exceed $1 million per year.
(B) Moneys as provided in subdivision (5), subsection (e) of this section, which shall be placed in a nonappropriated special account in the State Treasury called the "West Virginia Accredited Race Fund".
(4) The racing schedules, purse amounts and types of races are subject to the approval of the commission.
(5) If less than 75% of the restricted races required by this subsection fail to receive enough entries to race, the commission shall, on a quarterly basis, dedicate funds in each fund back to the general purse fund of the racing association or licensee. No moneys may be dedicated back to a general purse fund if the dedication would leave less than $250,000 in the fund.
(g) As used in this section, "West Virginia bred-foal" means a horse that was born in the State of West Virginia.
(h) To qualify for the West Virginia Accredited Race Fund, the breeder must qualify under one of the following:
(1) The breeder of the West Virginia bred-foal is a West Virginia resident;
(2) The breeder of the West Virginia bred-foal is not a West Virginia resident, but keeps his or her breeding stock in West Virginia year round; or
(3) The breeder of the West Virginia bred-foal is not a West Virginia resident and does not qualify under subdivision (2) of this subsection, but either the sire of the West Virginia bred- foal is a West Virginia stallion, or the mare is covered only by a West Virginia accredited stallion or stallions before December 31 of the calendar year following the birth of that West Virginia bred-foal.
(i) West Virginia accredited thoroughbred horses have preference for entry in all accredited races at a thoroughbred race track at which the licensee participates in the West Virginia Thoroughbred Development Fund.
(j) Any racing association licensed by the commission to conduct thoroughbred racing and permitting and conducting pari-mutuel wagering under the provisions of this article must have a West Virginia Thoroughbred Racing Breeders Program.
(k) The commission shall, during calendar year 2009, conduct a study of the adequacy of funding provided for the Thoroughbred Development Fund at any thoroughbred racetrack which has not participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to the December 31, 1992, and shall report its findings and recommendations to the Joint Committee on Government and Finance on or before December 31, 2009.
§29-22H-23. Expenditure of racetrack video lottery distribution.
(a) Funds received by the ~~Racing~~ commission pursuant to subdivision (6), subsection (c), section ten, article twenty-two-a, chapter twenty-nine of this code, and subdivision (5), subsection (a), section ten-b, article twenty-two-a, chapter twenty-nine of this code, together with the balance in the bank account previously established by the commission to receive those funds shall be deposited in the state treasury in a special account to be known as "West Virginia Racing Commission Racetrack Video Lottery Account". Notice of the amount, date and place of each deposit shall be given by the commission, in writing, to the State Treasurer.
(b) Funds in this account shall be allocated and expended as follows:
(1) For each fiscal year, the first $800,000 deposited in the separate account plus the amount then remaining of the June 30, 1997, balance in the separate account previously established for the West Virginia breeders classic under section twenty of this article, shall be used by the Commission for promotional activities, advertising, administrative costs and purses for the West Virginia Thoroughbred Breeders Classic, which shall give equal consideration to all horses qualifying under the West Virginia breeders program for each stake race, based solely on the horses' sex, age and earnings.
(2) For each fiscal year, the next $200,000 deposited into the account shall be used by the Commission for promotional activities and purses for open stake races for a race event to be known as the West Virginia Derby to be held at a thoroughbred racetrack which does not participate in the West Virginia Breeders Classic.
(3) For each fiscal year, once the amounts provided in subdivisions (1) and (2) of this subsection have been deposited into separate bank accounts for use in connection with the West Virginia Thoroughbred Breeders Classics and the West Virginia Derby, the Commission shall return to each racetrack all additional amounts deposited which originate during that fiscal year from each respective racetrack pursuant to subdivision (6), subsection (c), section ten, article twenty-two-a, chapter twenty-nine of this code, which returned excess funds shall be used as follows:
(A) For each dog racetrack, one half of the returned excess funds shall be used for capital improvements at the racetrack and one half of the returned excess funds shall be deposited into the West Virginia Racing Commission Special Account - West Virginia Greyhound Breeding Development Fund.
(B) At those thoroughbred racetracks that have participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to December 31,1992, 50% of the returned excess funds shall be used for capital improvements at the licensee's racetrack and 50% of the returned excess funds shall be equally divided between the West Virginia Thoroughbred Breeders Classic and the West Virginia Thoroughbred Development Fund.
(C) At those thoroughbred horse racetracks which do not participate in the West Virginia Breeders Classic, 50% of the returned excess funds shall be used for capital improvements at the licensee's racetrack and 50% of the returned excess funds shall be used for purses for the open stakes race event known as the West Virginia Derby.
(c) All expenditures that are funded under this section must be approved in writing by the commission before the funds are expended for any of the purposes authorized by this section.

§29-22H-24. Disposition of permit and registration fees and fines.

(a) All permit fees, fees paid for the registration of colors or assumed names and fines imposed by the stewards, starters or other racing officials shall be paid into a relief fund and paid out on the order of the commission for hospitalization, medical care and funeral expenses occasioned by injuries or death resulting from an accident sustained by any permit holder while in the discharge of his duties under the jurisdiction of the commission.
(b) No payment may be made for any hospitalization, medical care or funeral expenses as to any permit holder who is covered under the workers' compensation fund of this state, or any insurance policy providing payments for hospitalization, medical care or funeral expenses. Any balance in the relief fund at any time in excess of $5,000, less any relief obligations then outstanding, shall be transferred to the state treasurer for deposit to the credit of the General Revenue Fund.

§29-22H-25. Racetrack construction permits.

(a) A person may not construct racetrack where race meetings are to be conducted and the pari-mutuel system of wagering permitted or conducted without a construction permit issued by the commission.
(b) Any person desiring to obtain a construction permit shall file with the commission an application. The commission shall prescribe blank forms to be used in making the application. The application shall disclose, but not be limited to, the following:
(1) If the applicant be an individual, the full name and address of the applicant;
(2) If the applicant be a partnership, firm or association, the full name and address of each partner or member thereof, the name of the partnership, firm or association and its post-office address;
(3) If the applicant be a corporation, its name, the state of its incorporation, its post-office address, the full name and address of each officer and director thereof, and if a foreign corporation, whether it is qualified to do business in this state;
(4) Whether the applicant, any partner, member, officer or director has previously applied for a construction permit under the provisions of this article or for a similar construction permit in this or any other state, and if so, whether the construction permit was issued or refused;
(5) The name and address of any person who has agreed to lend the applicant money for use in connection with the proposed horse or dog racetrack;
(6) The name and address of any other person who is financially interested in the proposed horse or dog racetrack;
(7) The county where the proposed horse or dog racetrack is to be constructed and established, and if the proposed horse or dog racetrack is to be constructed and established across county lines, the identification of each county;
(8) Plans showing, in such detail as the commission may require, the proposed horse or dog racetrack and all buildings and improvements to be used in connection therewith; and
(9) Other information as the commission may reasonably require which may include information relating to any criminal record of the applicant, if an individual, or of each partner or member, if a partnership, firm or association, or of each officer and director, if a corporation.
(c) The application shall be verified by the oath or affirmation of the applicant for the construction permit, if an individual, or if the applicant is a partnership, firm, association or corporation, by a partner, member or officer thereof.
(d) An application for a construction permit for the construction and establishment of a dog racetrack may not be received or acted upon by or a construction permit issued by the commission for the construction and establishment of a dog racetrack which is to be located within fifty-five air miles of an existing horse racetrack: Provided, That nothing herein contained shall be construed to prohibit establishment of a dog racetrack in conjunction with harness racetrack facilities existing on and operating as a harness racetrack February 1, 1974, if the facilities are or can be made suitable: Provided, That nothing in this section exempts any such county from the local option provisions of this article.

§29-22H-26. Tentative approval of application for construction permit; denial of application; publication of notice.

(a) Upon the basis of the application and all other information before it, the commission shall make and enter an order granting tentative approval of the application if it finds:
(1) That the applicant intends to proceed in good faith to construct and establish a horse or dog racetrack complying in all particulars with the law of this state, the provisions of this article and any reasonable rules and regulations of the commission;
(2) That the plans for proposed racetrack are adequate and have been prepared with due regard to the safety of all persons who will use the racetrack;
(3) That the applicant is financially able to complete the racetrack in accordance with the plans submitted with the application; and
(4) That the construction and establishment of the proposed racetrack would be in the best interests of racing within this state.
(b) Otherwise, the commission shall deny the application and refuse to grant tentative approval. The commission shall make and enter an order to that effect and all of the provisions of section thirty-one pertaining to the denial of any application for a license and an order in connection therewith and the provisions of section thirty-two pertaining to judicial review of a decision of the commission shall govern and control. The denial and refusal shall be final and conclusive unless a hearing thereon shall be demanded pursuant to the provisions of section thirty-one of this article considered in pari materia with the preceding sentence of this subsection (b).
(c) If the commission grants tentative approval of the application, it shall prepare and publish a notice to the public that the commission has granted tentative approval of the application and that the commission will confirm the tentative approval and issue a construction permit to the applicant at the expiration of sixty days from the date of the first publication of the notice (which date shall be specified in the notice), unless within the time a petition for a local option election shall have been filed with the county commission of the county in which any integral part of the racetrack is proposed to be constructed and established. The notice shall be published as a Class II 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 any integral part of ~~such~~ proposed racetrack is to be constructed and is established.
§29-22H-27. Petition for local option election.
A petition for a local option election on the question of the proposed construction and establishment of a racetrack must be signed by qualified voters residing within the county equal to at least 15% of the qualified voters within the county at the last general election. The petition may be in any number of counterparts, but must be filed with the county commission prior to the expiration of the sixty day period specified in the notice published by the commission in accordance with the provisions of section nineteen of this article. The petition shall be sufficient if in substantially the following form: "PETITION FOR LOCAL OPTION ELECTION CONCERNING THE PROPOSED CONSTRUCTION AND ESTABLISHMENT OF A (HORSE OR DOG) RACETRACK IN _________________ COUNTY, WEST VIRGINIA.
"Each of the undersigned certifies that he or she is an individual residing in ______________ County, West Virginia, and is a qualified voter in the county under the laws of this State, and that his or her name, address and the date of signing this petition are correctly set forth below.
"The undersigned petition the county commission to call and hold a local option election as required by article twenty-two-h, chapter twenty-nine of the Code of West Virginia, 1931, as amended, upon the following question: 'Shall the Gaming and Racing Control Commission issue a construction permit authorizing the construction and establishment of a (horse or dog) racetrack where (horse or dog) race meetings may be held or conducted and the pari-mutuel system of wagering permitted and conducted in _______________ County, West Virginia?'
Name Address Date
_______________________________________
_______________________________________
_______________________________________
(Each individual signing must specify either his post-office address or his street name and number.)"

§29-22H-28. Local option election procedure.

(a) Upon the timely filing of a proper petition for a local option election in accordance with the provisions of section twenty-seven of this article, the county commission of the county in which all or any integral part of a proposed horse or dog racetrack is to be constructed and established is authorized to call a local option election for the purpose of determining the will of the qualified voters within the county as to the construction and establishment of all or any integral part of the horse or dog racetrack within the county. Upon the timely filing of a proper petition as aforesaid, the county commission shall enter an order calling for a local option election and providing that the same shall be held at the same time and as a part of the next primary or general election to be held in county. A copy of the order so entered by the county commission shall be served upon the commission and the commission shall take no further action in connection with the issuance of the construction permit until the local option election shall be held. The county commission shall give notice of the local option 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. The notice shall be so published within fourteen consecutive days next preceding the date of election.
(b) The local option election ballots, or ballot labels where voting machines are used, shall have printed thereon substantially the following:
"Shall the Gaming and Racing Control Commission issue a construction permit authorizing the construction and establishment of a (horse or dog) racetrack where (horse or dog) race meetings may be held or conducted and the pari- mutuel system of wagering permitted and conducted?
/ / Yes / / No (Place a cross mark in the square opposite your choice.)"
(c) Each individual qualified to vote in the county at a primary or general election shall likewise be qualified to vote at the local option election. The election officers appointed and qualified to serve at the primary or general election shall conduct the local option election in connection with and as a part of the primary or general election. The votes in the local option election shall be counted and returns made by the election officers, the results certified by the commissioners of election to the county commission which shall canvass the ballots, all in accordance with the laws of this state relating to primary and general elections insofar as the same are applicable. The county commission shall, without delay, canvass the votes cast at the local option election and certify the results thereof to the commission.

§29-22H-29. Issuance construction permit; duration of construction permit; transfer and assignment of construction permit.

(a) The commission shall, after the certification of the results of the local option election, issue the construction permit if a majority of the legal votes cast at the election were in favor of the issuance of a construction permit. If a majority of the legal votes cast at the election were opposed to the issuance of a construction permit, the commission may not issue a construction permit.
(b) A construction permit issued as aforesaid shall remain valid only for a three-month period, except that if the commission is satisfied that the construction permit holder has in good faith started and is continuing construction of the proposed horse or dog racetrack, the commission may extend the construction permit for additional successive three-month periods, but in no event may the aggregate time of the construction permit exceed a period of twenty-four months from the date of the issuance of the construction permit.
(c) No construction permit may be transferred or assigned in any manner whatever without the written consent of the commission.
§29-22H-30. Further elections restricted.
When a local option election in accordance with the provisions of this article or the former provisions of this article shall have been held in a county, another election may not be held in the county for a period of five years, and within that time the commission may not accept or act upon any application for any other construction permit within the county, except that if an election be held seeking the approval of a permit for the construction of a horse racetrack another election may be held within the five-year period seeking the approval of a permit for the construction of a dog racetrack, and the reverse shall also be true. In the event a horse or dog racetrack shall be constructed in a county pursuant to a construction permit issued by the commission in accordance with the provisions of this article, no local option election shall thereafter be held as to any horse or dog racetrack constructed and established pursuant to the construction permit: Provided, That a local option election has been held for the type of racing to be conducted.

§29-22H-31. Investigation, suspension or revocation of license or permit.

(a) The commission may conduct an investigation to determine whether any provisions of this article or any of its rules have been or are about to be violated by a licensee or permit holder. The commission may suspend or revoke a license or permit if the licensee or permit holder:
(1) Is convicted of an offense which, under the law any jurisdiction constitutes a felony or a crime involving moral turpitude;
(2) Is, if a corporation, dissolved under the law of this state or ceases to be qualified to do business within this state; or
(3) Has a license or permit to which the licensee or permit holder is not lawfully entitled.
(b) The commission may also suspend or revoke a license or permit if it finds the existence of any ground upon which the license or permit could have been refused, or any ground which would be cause for refusing a license or permit to the licensee or permit holder were the licensee or permit holder then applying for the same.
(c) A majority of the stewards at any horse or dog race meeting may suspend or revoke a permit for any reason for which the commission may suspend or revoke a permit, as specified in subsections (a) and (b) of this section, or for any other reason authorized by rules promulgated by the commission.
(d) Whenever a licensee fails to keep the bond required, if any, under the provisions of section seven of this article in full force and effect, the license of the licensee shall automatically be suspended unless and until a bond or other security, if required, is furnished to the commission, in which event the suspension shall be vacated.
(e) Any suspension of a license or permit shall continue for the period specified in the order of suspension, or until the cause therefor has been eliminated or corrected, as set forth in the order of suspension. Revocation of a license or permit may not preclude application for a new license or permit, which application shall be processed in the same manner and the application approved or denied and the license or permit issued or refused on the same grounds as any other application for a license or permit is processed, considered and passed upon, except that any previous suspension and the revocation may be given the weight in deciding whether to approve or deny the application and issue or refuse the license or permit as is meet and proper under all of the circumstances.
(f) Whenever a majority of the stewards at any horse or dog race meeting shall suspend or revoke a permit, the suspension or revocation shall be effective immediately. The stewards shall, as soon as thereafter practicable, make and enter an order to that effect and serve a copy on the permit holder, in any manner in which a summons may be served in a civil action or by certified mail, return receipt requested. The order shall state the grounds for the action taken.
(g) Any person adversely affected by the order shall be entitled to a hearing, within twenty days after service of a copy, if served in any manner in which a summons may be served as aforesaid or within twenty days after receipt of a copy thereof if served by certified mail as aforesaid, such person files with the commission a written demand for the hearing. A demand for hearing shall operate automatically to stay or suspend the execution of any order suspending or revoking a license, but a demand for hearing may not operate to stay or suspend the execution of any order suspending or revoking a permit. The commission may require the person demanding such hearing to give reasonable security for the costs thereof and if such person does not substantially prevail at the hearing such costs shall be assessed against the person and may be collected by an action at law or other proper remedy.
§29-22H-32. Procedures for hearing; right of appeal.
(a) Hearings shall be governed by the provisions of article five, chapter twenty-nine-a.
(b) The commission may conduct the hearing or elect to have an administrative law judge conduct the hearing.
(c) If the hearing is conducted by an administrative law judge, at the conclusion of a hearing he or she shall prepare a proposed written order containing findings of fact and conclusions of law. The proposed order may contain proposed disciplinary actions if the commission so directs. The commission may accept, reject or modify the decision of the administrative law judge.
(d) Any member of the commission has the authority to administer oaths, examine any person under oath and issue subpoenas and subpoenas duces tecum.
(e) If, after a hearing, the commission determines the licensee has violated any provision of this article or the commission's rules, a formal written decision shall be prepared which contains findings of fact, conclusions of law and a specific description of the disciplinary actions imposed.
§19-23-33. Hearing and judicial review.
Any licensee or permit holder adversely affected by a decision of the commission entered after a hearing may obtain judicial review of the decision in accordance with section four, article five, chapter twenty-nine-a of this code, and may appeal any ruling resulting from judicial review in accordance with article six, chapter twenty-nine-a of this code.
§29-22H-34. Application to enjoin violations.
(a) Whenever it appears to the commission that any person has been or is violating or is about to violate any provision of this article, any rule or any order or final decision of the commission, the commission may apply the circuit court of the county in which the violation or violations or any part has occurred, is occurring or is about to occur, or the judge thereof in vacation, for an injunction against the person and any other persons who have been, are or are about to be, involved in any practices, acts or omissions, so in violation, enjoining the person or persons from any violation or violations. The application may be made and prosecuted to conclusion whether or not any violation or violations have resulted or shall result in prosecution or conviction under the provisions of section twenty-six of this article.
Upon application by the commission, the circuit courts may by mandatory or prohibitory injunction compel compliance with the provisions of this article, the rules and all orders and final decisions of the commission. The court may issue a temporary injunction in any case pending a decision on the merits of any application filed.
The judgment of the circuit court upon any application permitted by the provisions of this section shall be final unless reversed, vacated or modified on appeal to the supreme court of appeals. Any appeal shall be sought in the manner and within the time provided by law for appeals from circuit courts in other civil actions.
The commission shall be represented in all proceedings by the attorney general or his assistants. The commission, with the written approval of the attorney general, may employ special counsel to represent the commission in any proceedings.
§29-22H-35. Offenses and penalties.
(a) No licensee shall permit or allow any individual under the age of eighteen years to wager at any horse or dog racetrack, knowing or having reason to believe that the individual is under the age of eighteen years.
(a) Any person conducting, assisting, aiding or abetting in the conducting, of any race meeting without a license issued by the commission, shall be guilty of a misdemeanor, and, upon conviction, shall be punished by a fine of not less than $1,000 for each day of the unauthorized race meeting, or by imprisonment in jail not exceeding one year, or by both such fine and imprisonment, in the discretion of the court: Provided, That no conviction may be had or punishment imposed upon any licensee, whose license has been suspended or revoked, for conducting a horse or dog race meeting while execution of the order of suspension or revocation is stayed or suspended as provided in this article.
(b) Any person violating any provision of section four or section five of this article shall be guilty of a misdemeanor, and, upon conviction, shall be punished by a fine of not less than $500 nor more than $1,000, or by imprisonment in jail for not less than six months nor more than one year, or by both the fine and imprisonment, in the discretion of the court. The venue of any offense shall be in the county, or any one of the counties, wherein the person violating section four or section five carries out any duties of, or performs any work for, the commission, which constitute the basis of the charge or complaint.
(c) Any person violating any provision of subsection (b), section two of this article shall be guilty of a misdemeanor, and, upon conviction, shall be punished by a fine of not less than $100 nor more than $500, or by imprisonment in jail for not less than one month nor more than two months, or by both the fine and imprisonment, in the discretion of the court. The venue of any offense shall be in the county, or any one of the counties, wherein the person violating subsection (b) carries out any duties of, or performs any work for, the commission, which constitute the basis of the charge or complaint.
(d) False swearing before the commission on the part of any witness shall be deemed perjury.

§29-22H-36. Effect on existing rules, licenses and permits.

(a) All rules promulgated by the Racing Commission and in effect on the effective date of this section shall remain in full force and effect until superseded, amended or repealed.
(b) A license or permit issued by the Racing Commission under the provisions of this article, shall remain valid unless expired, suspended or revoked.
ARTICLE 22I. INTERSTATE COMPACT ON LICENSURE OF PARTICIPANTS IN LIVE HORSE RACING WITH PARI-MUTUEL WAGERING.

§29-22I-1. Interstate compact on licensure of participants in live racing with pari-mutuel wagering; form of compact.

The interstate compact on licensure of participants in live racing with pari-mutuel wagering is enacted into law and entered into with all other jurisdictions legally joining in the compact in the form substantially as follows:
ARTICLE I. PURPOSES.
§1. Purposes.
The purposes of this compact are to:
1. Establish uniform requirements among the party states for the licensing of participants in live racing with pari-mutuel wagering and ensure that all the participants who are licensed pursuant to this compact meet a uniform minimum standard of honesty and integrity.
2. Facilitate the growth of the racing industry in each party state and nationwide by simplifying the process for licensing participants in live racing and reduce the duplicative and costly process of separate licensing by the regulatory agency in each state that conducts live racing with pari-mutuel wagering.
3. Authorize the West Virginia ~~racing~~ Gaming and Racing Control Commission to participate in this compact.
4. Provide for participation in this compact by officials of the party states and permit those officials, through the compact committee established by this compact, to enter into contracts with governmental agencies and nongovernmental persons to carry out the purposes of this compact.
5. Establish the compact committee created by this compact as an interstate governmental entity duly authorized to request and receive criminal history record information from the federal bureau of investigation and other state and local law-enforcement agencies.
ARTICLE II. DEFINITIONS.
§2. Definitions.
"Compact committee" means the organization of officials from the party states that is authorized and empowered by this compact to carry out the purposes of this compact.
"Official" means the appointed, elected, designated or otherwise duly selected member of a racing commission or the equivalent of a racing commission in a party state who represents that party state as a member of the compact committee.
"Participants in live racing" means participants in live racing with pari-mutuel wagering in the party states.
"Party state" means each state that has enacted this compact.
"State" means each of the several states of the United States, the District of Columbia, the Commonwealth of Puerto Rico and each territory or possession of the United States.
ARTICLE III. ENTRY INTO FORCE, ELIGIBLE PARTIES AND WITHDRAWAL.
§3. Entry into force.
This compact shall come into force when enacted by any four states. Thereafter, this compact shall become effective as to any other state upon: (i) That state's enactment of this compact; and (ii) the affirmative vote of a majority of the officials on the compact committee as provided in section eight.
§4. States eligible to join compact.
Any state that has adopted or authorized racing with pari-mutuel wagering is eligible to become party to this compact.

§5. Withdrawal from compact and impact thereof on force and effect of compact.

Any party state may withdraw from this compact by enacting a statute repealing this compact, but the withdrawal does not become effective until the head of the executive branch of the withdrawing state has given notice in writing of the withdrawal to the head of the executive branch of all other party states. If as a result of withdrawals participation in this compact decreases to less than three party states, this compact is no longer in force and effect unless and until there are at least three or more party states again participating in this compact.
ARTICLE IV. COMPACT COMMITTEE.
§6. Compact committee established.
There is hereby created an interstate governmental entity to be known as the "compact committee", which shall be comprised of one official from the racing commission or its equivalent in each party state who shall be appointed, serve and is subject to removal in accordance with the laws of the party state he or she represents. Pursuant to the laws of his or her party state, each official shall have the assistance of his or her state's racing commission or the equivalent of a racing commission in considering issues related to licensing of participants in live racing and in fulfilling his or her responsibilities as the representative from his or her state to the compact committee. If an official is unable to perform any duty in connection with the powers and duties of the compact committee, the racing commission or equivalent from his or her state shall designate another of its members as an alternate who shall serve in his or her place and represent the party state as its official on the compact committee until that racing commission or equivalent determines that the original representative official is able once again to perform his or her duties as that party state's representative official on the compact committee. The designation of an alternate shall be communicated by the affected state's racing commission or equivalent to the compact committee as the committee's bylaws may provide.
§7. Powers and duties of compact committee.
In order to carry out the purposes of this compact, the compact committee is hereby granted the power and duty to:
1. Determine which categories of participants in live horse racing, including, but not limited to, owners, trainers, jockeys, grooms, mutuel clerks, racing officials, veterinarians and farriers, and determine which comparable categories of participants in live dog racing and other forms of live racing with pari-mutuel wagering in two (2) or more of the party states, should be licensed by the committee, and establish the requirements for the initial licensure of applicants in each such category, the term of the license for each category and the requirements for renewal of licenses in each category: Provided, That with regard to requests for criminal history record information on each applicant for a license and with regard to the effect of a criminal record on the issuance or renewal of a license, the compact committee shall determine for each category of participants in live racing which licensure requirements for that category are, in its judgment, the most restrictive licensure requirements of any party state for that category and shall adopt licensure requirements for that category that are, in its judgment, comparable to those most restrictive requirements.
2. Investigate applicants for a license from the compact committee and, as permitted by federal and state law, gather information on the applicants, including criminal history record information from the federal bureau of investigation and relevant state and local law-enforcement agencies and, where appropriate, from the royal Canadian mounted police and law-enforcement agencies of other countries, necessary to determine whether a license should be issued under the licensure requirements established by the committee as provided in paragraph one above. Only officials on, and employees of, the compact committee may receive and review the criminal history record information and those officials and employees may use that information only for the purposes of this compact. No such official or employee may disclose or disseminate the information to any person or entity other than another official on or employee of the compact committee. The fingerprints of each applicant for a license from the compact committee shall be taken by the compact committee, its employees or its designee and, pursuant to Public Law 92-544 or Public Law 100-413, shall be forwarded to a state identification bureau, or to the association of racing commissioners, international, an association of state officials regulating pari-mutuel wagering designated by the attorney general of the United States, for submission to the federal bureau of investigation for a criminal history record check. The fingerprints may be submitted on a fingerprint card or by electronic or other means authorized by the federal bureau of investigation or other receiving law-enforcement agency.
3. Issue licenses to, and renew the licenses of, participants in live racing listed in paragraph one of this section who are found by the committee to have met the licensure and renewal requirements established by the committee. The compact committee does not have the power or authority to deny a license. If it determines that an applicant will not be eligible for the issuance or renewal of a compact committee license, the compact committee shall notify the applicant that it will not be able to process his or her application further. The notification does not constitute and shall not be considered to be the denial of a license. Any such applicant has the right to present additional evidence to, and to be heard by, the compact committee, but the final decision on issuance or renewal of the license shall be made by the compact committee using the requirements established pursuant to paragraph one of this section.
4. Enter into contracts or agreements with governmental agencies and with nongovernmental persons to provide personal services for its activities and other services as may be necessary to effectuate the purposes of this compact.
5. Create, appoint and abolish those offices, employments and positions, including an executive director, as it considers necessary for the purposes of this compact, prescribe their powers, duties and qualifications, hire persons to fill those offices, employments and positions and provide for the removal, term, tenure, compensation, fringe benefits, retirement benefits and other conditions of employment of its officers, employees and other positions.
6. Borrow, accept or contract for the services of personnel from any state, the United States, any other governmental agency or from any person, firm, association, corporation or other entity.
7. Acquire, hold and dispose of real and personal property by gift, purchase, lease, license or in other similar manner, in furtherance of the purposes of this compact.
8. Charge a fee to each applicant for an initial license or renewal of a license.
9. Receive other funds through gifts, grants and appropriations.
§8. Voting requirements.
A. Each official shall be entitled to one vote on the compact committee.
B. All action taken by the compact committee with regard to the addition of party states as provided in section three, the licensure of participants in live racing, and the receipt and disbursement of funds requires a majority vote of the total number of officials, or their alternates, on the committee. All other action by the compact committee requires a majority vote of those officials, or their alternates, present and voting.
C. No action of the compact committee may be taken unless a quorum is present. A majority of the officials, or their alternates, on the compact committee constitutes a quorum.
§9. Administration and management.
A. The compact committee shall elect annually from among its members a chairman, a vice chairman and a secretary/treasurer.
B. The compact committee shall adopt bylaws for the conduct of its business by a two-thirds vote of the total number of officials, or their alternates, on the committee at that time and shall have the power by the same vote to amend and rescind these bylaws. The committee shall publish its bylaws in convenient form and shall file a copy of the bylaws and a copy of any amendments to the bylaws with the secretary of state or equivalent agency of each of the party states.
C. The compact committee may delegate the day-to-day management and administration of its duties and responsibilities to an executive director and his or her support staff.
D. Employees of the compact committee shall be considered governmental employees.

§10. Immunity from liability for performance of official responsibilities and duties.

No official of a party state or employee of the compact committee may be held personally liable for any good faith act or omission that occurs during the performance and within the scope of his or her responsibilities and duties under this compact.
ARTICLE V. RIGHTS AND RESPONSIBILITIES OF EACH PARTY STATE.
§11. Rights and responsibilities of each party state.
A. By enacting this compact, each party state:
1. Agrees: (i) To accept the decisions of the compact committee regarding the issuance of compact committee licenses to participants in live racing pursuant to the committee's licensure requirements; and (ii) to reimburse or otherwise pay the expenses of its official representative on the compact committee or his or her alternate.
2. Agrees not to treat a notification to an applicant by the compact committee under paragraph three of section seven that the compact committee will not be able to process his or her application further as the denial of a license, or to penalize such an applicant in any other way based solely on such a decision by the compact committee.
3. Reserves the right: (i) To charge a fee for the use of a compact committee license in that state; (ii) to apply its own standards in determining whether, on the facts of a particular case, a compact committee license should be suspended or revoked; (iii) to apply its own standards in determining licensure eligibility, under the laws of that party state, for categories of participants in live racing that the compact committee determines not to license and for individual participants in live racing who do not meet the licensure requirements of the compact committee; and (iv) to establish its own licensure standards for the licensure of nonracing employees at horse and dog racetracks and employees at separate satellite wagering facilities. Any party state that suspends or revokes a compact committee license shall, through its racing commission or the equivalent thereof or otherwise, promptly notify the compact committee of that suspension or revocation.
B. No party state may be held liable for the debts or other financial obligations incurred by the compact committee.
ARTICLE VI. CONSTRUCTION AND SEVERABILITY.
§12. Construction and severability.
This compact shall be liberally construed so as to effectuate its purposes. The provisions of this compact shall be severable and, if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of the United States or of any party state, or the applicability of this compact to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If all or some portion of this compact is held to be contrary to the constitution of any party state, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.
§29-22I-2. Compact committee members.
The governor shall appoint one official to represent West Virginia on the compact committee for a term of four years. No official may serve more than three consecutive terms. A vacancy shall be filled by the governor for the unexpired term.
§29-22I-3. Reimbursement for compact committee official member.
The duly appointed and designated official state representative on the compact committee shall be reimbursed for all actual expenses and expenditures incurred and expended in the performance of his or her official duties as a compact committee member, notwithstanding any provision set forth to the contrary in article twenty-three of this chapter nor any provision set forth to the contrary in section eleven, article three, chapter twelve of this code or any rules promulgated pursuant thereto.
§29-22I-4. Cooperation of departments, agencies and officers.
All departments, agencies and officers of the state and its political subdivisions are authorized to cooperate with the compact committee in furtherance of any of its activities pursuant to the compact.
§29-22I-5. Gaming and Racing Control Commission powers preserved.
Nothing in this article diminishes or limits the powers and responsibilities of the commission established in article twenty-h of this chapter, or invalidates any action of the commission previously taken, including, without limitation, any rule promulgated by the commission.

ARTICLE 25. AUTHORIZED GAMING FACILITY.

§29-25-2. Definitions.
(a) "Applicant" means any person or entity applying for a license.
(b) "Adjusted gross receipts" means the gross receipts of a gaming facility from authorized games of chance less winnings paid to wagerers in the games.
(c) "Authorized game of chance" includes baccarat, twenty-one or blackjack, poker, craps, roulette, wheel of fortune, video lottery games and any other Monte Carlo style table game expressly authorized by rule of the commission, but expressly excludes punchboards, faro, keno, numbers tickets, push cards, jar tickets, pull tabs or similar games.
(d) "Controlling interest" means:
(1) For a partnership, an interest as a general or limited partner holding more than 50% interest in the entity;
(2) For a corporation, an interest of more than fifty percent of the stock in the corporation; and
(3) For any other entity, an ownership interest of more than fifty percent in the entity.
(e) "Controlling person" means, with respect to another person, any person directly or indirectly owning or holding a controlling interest in that other person.
(f) "Commission" means the ~~state Lottery Commission~~ Gaming and Racing Control Commission created in section four, article twenty- two of this chapter.
(g) "Director" means the Director of the ~~state Lottery Commission~~ Gaming and Racing Control Agency.
(h) "Gaming devices and supplies" means gaming tables for all authorized games of chance, roulette wheels, wheels of fortune, video lottery terminals, cards, dice, chips, tokens, markers or any other mechanical, electronic or other device, mechanism or equipment or related supplies utilized in the operation of an authorized game of chance.
(I) "Gaming facility" means a designated area on the premises of an historic resort hotel in which authorized games of chance are conducted by a gaming licensee.
(j) "Gaming licensee" means the licensed operator of a gaming facility.
(k) "Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens or electronic cards by patrons of a gaming facility reduced by gross terminal income to the extent gross terminal income is included in the amount of money exchanged.
(l) "Gross terminal income" has the same meaning ascribed to the term as set forth in article twenty-two-a of this chapter.
(m) "Historic resort hotel" means a resort hotel registered with the United States Department of the Interior as a national historic landmark in its national registry of historic places having not fewer than five hundred guest rooms under common ownership and having substantial recreational guest amenities in addition to the gaming facility.
(n) "License" means a license issued by the commission, including:
(1) A license to operate a gaming facility;
(2) A license to supply gaming devices and supplies to a gaming facility; or
(3) A license to be employed in connection with the operation of a gaming facility.
(o) "Licensed gaming facility employee" means any individual licensed to be employed by a gaming licensee in connection with the operation of a gaming facility.
(p) "Licensed gaming facility supplier" means a person who is licensed by the commission to engage in the business of supplying gaming devices and gaming supplies to a gaming facility.
(q) "Licensee" means a gaming licensee, a licensed gaming facility supplier or a licensed gaming facility employee.
(r) "Person" means any natural person, corporation, association, partnership, limited partnership, limited liability company or other entity, regardless of its form, structure or nature.
(s) "State Gaming Fund" means the special fund in the State Treasury created in section twenty-two of this article.
(t) "Video lottery games" and "video lottery terminals" have the same meaning ascribed the terms in article twenty-two-a of this chapter.