This article shall be known and may be cited as the "Racetrack Video Lottery Act."
(a) The Legislature finds and declares that the limited video lottery games authorized by this article are "lotteries" as that term is commonly understood and as that term is used in West Virginia Constitution, article VI, section thirty-six, the video lottery games authorized by this article being lottery games which utilize advanced computer technology; and that the Constitution grants to the Legislature the authority to establish, by general law, the manner of regulation, control, ownership and operation of lottery games in the state of West Virginia.
(b) The Legislature further finds and declares that the state can control, own and operate a video lottery by possessing a proprietary interest in the main logic boards, all erasable, programmable read-only memory chips used in any video lottery equipment or games, and software consisting of computer programs, documentation and other related materials necessary for the video lottery system to be operated. The state may acquire a proprietary interest in video lottery game software, for purposes of this article, through outright ownership or through an exclusive product license agreement with a manufacturer whereby the manufacturer retains copyrighted ownership of the software but the license granted to the state is nontransferable and authorizes the state to run the software program, solely for its own use, on the state's central equipment unit and electronic video terminals networked to the central equipment unit.
(c) The Legislature further finds and declares that the state can control and regulate a video lottery if the state limits licensure to a limited number of video lottery facilities located at qualified horse or dog racetracks, extends strict and exclusive state regulation to all persons, locations, practices and associations related to the operation of licensed video lottery facilities, and provides comprehensive law enforcement supervision of video lottery activities.
(d) The Legislature further finds and declares that since the public has an interest in video lottery operations and since lottery operations conducted pursuant to West Virginia Constitution, article VI, section thirty-six, and under this article represent an exception to the general statutory policy of the state concerning wagering for private gain, participation in a video lottery by a licensee or permittee under this article shall be deemed a privilege conditioned upon the proper and continued qualification of the licensee or permittee and upon the discharge of the affirmative responsibility of each licensee to provide to the regulatory and investigatory authorities established by this article any assistance and information necessary to assure that the policies declared by this article are achieved. Consistent with this policy, it is the intent of this article to preclude the creation of any property right in any license or permit issued by the state under this article, the accrual of any value to the privilege of participation in any video lottery operation, or the transfer of any license or permit, and to require that participation in video lottery operations be solely conditioned upon the individual qualifications of persons seeking such privilege.
(e) The purpose of this article is to define and provide specific standards for the operation of video lottery games at pari-mutuel racing facilities licensed by the state racing commission pursuant to article twenty-three, chapter nineteen of this code. The Legislature finds and declares that the existing pari-mutuel racing facilities in West Virginia provide a valuable tourism resource for this state and provide significant economic benefits to the citizens of this state through the provision of jobs and the generation of state revenues; that this valuable tourism resource is threatened because of a general decline in the racing industry and because of increasing competition from racing facilities and lottery products offered by neighboring states; and that the survival of West Virginia's pari-mutuel racing industry is in jeopardy unless modern lottery games areauthorized at the racetracks.
(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 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.
(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 racetrack which is licensed by the West Virginia racing commission to conduct thoroughbred or greyhound racing meetings pursuant to article twenty-three, chapter nineteen 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 commission.
(p) "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) "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) "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) "Own" means any beneficial or proprietary interest in any property or business of an applicant or licensed racetrack.
(t) "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, chapter nineteen 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 the first day of January, one thousand nine hundred ninety-four, 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) "Permit" means authorization granted by the commission to a person to function as either a video lottery manufacturer, service technician or validation manager.
(v) "Person" means any natural person, corporation, association, partnership, limited partnership, or other entity, regardless of its form, structure or nature.
(w) "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.
(x) "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) "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, 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 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) "Validation manager" means a person who holds a permit issued by the commission and who performs video lottery ticket redemption services.
(aa) "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) "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) "Wager" means a sum of money or thing of value risked on an uncertain occurrence.
The state lottery commission is authorized to implement and operate video lottery games at pari-mutuel racing facilities in this state in accordance with the provisions of this article and the applicable provisions of article twenty-two of this chapter. The provisions of article twenty-two of this chapter apply to this article, except in the event of conflict or inconsistency between any of the provisions of this article and the provisions of article twenty-two of this chapter. In that event, the provisions of this article shall supersede any conflicting or inconsistent provisions contained in article twenty-two of this chapter.
(a) Video lottery terminals registered with and approved by the commission for use at licensed racetracks may offer video lottery games regulated, controlled, owned and operated by the commission in accordance with the provisions of this section, and utilizing specific game rules separately filed from time to time by the commission with the secretary of state.
(b) A manufacturer may not sell or lease a video lottery terminal for placement at a licensed racetrack in this state unless the terminal has been approved by the commission. Only manufacturers with permits may apply for approval of a video lottery terminal or associated equipment. The manufacturer shall submit two copies of terminal illustrations, schematics, block diagrams, circuit analysis, technical and operation manuals and any other information requested by the commission for the purpose of analyzing and testing the video lottery terminal or associated equipment.
(c) The commission may require that two working models of a video lottery terminal be transported to the location designated by the commission for testing, examination and analysis.
(1) The manufacturer shall pay all costs of testing, examination, analysis and transportation of such video lottery terminal models. The testing, examination and analysis of any video lottery terminal model may require dismantling of the terminal and some tests may result in damage or destruction to one or more electronic components of such terminal model. The commission may require that the manufacturer provide specialized equipment or pay for the services of an independent technical expert to test the terminal.
(2) The manufacturer shall pay the cost of transportation of two video lottery terminals to lottery headquarters. The commission shall conduct an acceptance test to determine terminal functions and central system compatibility. If the video lottery terminal fails the acceptance test conducted by the commission, the manufacturer shall make all modifications required by the commission.
(d) After each test has been completed, the commission shall provide the terminal manufacturer with a report containing findings, conclusions and pass/fail results. The report may contain recommendations for video lottery terminal modification to bring the terminal into compliance with the provisions of this article. Prior to approving a particular terminal model, the commission may require a trial period not in excess of sixty days for a licensed racetrack to test the terminal. During the trial period, the manufacturer may not make any modifications to the terminal model unless such modifications are approved by the commission.
(e) The video lottery terminal manufacturer and licensed racetrack are jointly responsible for the assembly and installation of all video lottery terminals and associated equipment. The manufacturer and licensed racetrack shall not change the assembly or operational functions of a terminal licensed for placement in West Virginia unless a request for modification of an existing video terminal prototype is approved by the commission. The request must contain a detailed description of the type of change, the reasons for the change and technical documentation of the change.
(f) Each video lottery terminal approved for placement at a licensed racetrack must conform to the exact specifications of the video lottery terminal prototype tested and approved by the commission. If any video lottery terminal or any video lottery terminal modification, which has not been approved by the commission, is supplied by a manufacturer and operated by alicensed racetrack, the commission shall seize and destroy all of that licensed racetrack's and manufacturer's noncomplying video lottery terminals and shall suspend the license and permit of the licensed racetrack and manufacturer.
(1) Electrical and mechanical parts and design principles may not subject a player to physical hazards or injury.
(2) A surge protector shall be installed on the electrical power supply line to each video lottery terminal. A battery or equivalent power back-up for the electronic meters shall be capable of maintaining accuracy of all accounting records and terminal status reports for a period of one hundred eighty days after power is disconnected from the terminal. The power back-up device shall be located within the locked logic board compartment of the video lottery terminal.
(3) An on/off switch which controls the electrical current used in the operation of the terminal shall be located in an accessible place within the interior of the video lottery terminal.
(4) The operation of each video lottery terminal may not be adversely affected by any static discharge or other electromagnetic interference.
(5) A minimum of one electronic or mechanical coin acceptor or other means accurately and efficiently to establish credits shall be installed on each video lottery terminal. Each video lottery terminal may also contain bill acceptors for any legal United States currency. All coin and bill acceptors shall be approved by the commission prior to use on any video lottery terminal in this state.
(6) Access to the interior of a video lottery terminal shall be controlled through a series of locks and seals.
(7) The main logic boards and all erasable programmable read-only memory chips (EPROMS) are considered to be owned by the commission and shall be located in a separate locked and sealed area within the video lottery terminal.
(8) The cash compartment shall be located in a separate locked area within or attached to the video lottery terminal.
(9) No hardware switches, jumpers, wire posts or any other means of manipulation may be installed which alter the pay tables or payout percentages in the operation of a game. Hardware switches on a video lottery terminal to control the terminal's graphic routines, speed of play, sound and other purely cosmetic features may be approved by the commission.
(10) Each video lottery terminal shall contain a single printing mechanism capable of printing an original ticket and retaining an exact legible copy within the video lottery terminal or other means of capturing and retaining an electronic copy of the ticket data as approved by the commission: Provided, That such printing mechanism is optional on any video lottery terminal which is designed and equipped exclusively for coin or token payouts. The following information shall be recorded on the ticket when credits accrued on a video lottery terminal are redeemed for cash:
(i) The number of credits accrued;
(ii) Value of the credits in dollars and cents displayed in both numeric and written form;
(iii) Time of day and date;
(iv) Validation number; and
(v) Any other information required by the commission.
(11) A permanently installed and affixed identification plate shall appear on the exterior of each video lottery terminal and the following information shall be on the plate:
(i) Manufacturer of the video lottery terminal;
(ii) Serial number of the terminal; and
(iii) Model number of the terminal.
(12) The rules of play for each game shall be displayed on the video lottery terminal face or screen. The commission may reject any rules of play which are incomplete, confusing, misleading or inconsistent with game rules approved by the commission. For each video lottery game there shall be a display detailing the credits awarded for the occurrence of each possible winning combination of numbers or symbols. A video lottery terminal may allow the amounts of minimum and maximum wagers on a single game to be determined by licensee or permit holder in the exercise of its business judgment subject to the approval of the commission. All information required by this subdivision shall be displayed under glass or another transparent substance. No stickers or other removable devices shall be placed on the video lottery terminal screen or face without the prior approval of the commission.
(13) Communication equipment and devices shall be installed to enable each video lottery terminal to communicate with the commission's central computer system by use of a communications protocol provided by the commission to each permitted manufacturer, which protocol shall include information retrieval and terminal activation and disable programs, and the commission may require each licensed racetrack to pay the cost of a central site computer as a part of the licensing requirement.
(14) All video lottery terminals shall have a security system which temporarily disables the gaming function of the terminal while opened.
(b) Each video lottery terminal shall have a random number generator to determine randomly the occurrence of each specific symbol or number used in video lottery games. A selection process is random if it meets the following statistical criteria:
(1) Chi-square test. -- Each symbol or number shall satisfy the ninety-nine percent confidence level using the standard chi-square statistical analysis of the difference between the expected result and the observed result.
(2) Runs test. -- Each symbol or number may not produce a significant statistic with regard to producing patterns of occurrences. Each symbol or number is random if it meets the ninety-nine percent confidence level with regard to the runs test for the existence of recurring patterns within a set of data.
(3) Correlation test. -- Each pair of symbols or numbers is random if it meets the ninety-nine percent confidence level using standard correlation analysis to determine whether each symbol or number is independently chosen without regard to another symbol or number within a single game play.
(4) Serial correlation test. -- Each symbol or number is random if it meets the ninety-nine percent confidence level using standard serial correlation analysis to determine whether each symbol or number is independently chosen without reference to the same symbol or number in a previous game.
(c) Each video lottery terminal shall meet the following maximum and minimum theoretical percentage payout during the expected lifetime of the terminal:
(1) Video lottery games shall pay out no less than eighty percent and no more than ninety-five percent of the amount wagered. The theoretical payout percentage will be determined using standard methods of probability theory.
(2) Manufacturers must file a request and receive approval from the commission prior to manufacturing for placement in this state video lottery terminals programmed for a payout greater than ninety-two percent of the amount wagered. Commission approval shall be obtained prior to applying for testing of the high payout terminals.
(3) Each terminal shall have a probability greater than one in seventeen million of obtaining the maximum payout for each play.
(d) Each video lottery terminal shall be capable of continuing the current game with all current game features after a video lottery terminal malfunction is cleared. If a video lottery terminal is rendered totally inoperable during game play, the current wager and all credits appearing on the video lottery terminal screen prior to the malfunction shall be returned to the player.
(e) Each video lottery terminal shall at all times maintain electronic accounting regardless of whether the terminal is being supplied with electrical power. Each meter shall be capable of maintaining a total of no less than eight digits in length for each type of data required. The electronic meters shall record the following information:
(1) Number of coins inserted by players or the coin equivalent if a bill acceptor is being used or tokens or vouchers are used;
(2) Number of credits wagered;
(3) Number of total credits, coins and tokens won;
(4) Number of credits paid out by a printed ticket;
(5) Number of coins or tokens won, if applicable;
(6) Number of times the logic area was accessed;
(7) Number of times the cash door was accessed;
(8) Number of credits wagered in the current game;
(9) Number of credits won in the last complete video lottery game; and
(10) Number of cumulative credits representing money inserted by a player and credits for video lottery games won but not collected.
(f) No video lottery terminal may have any mechanism which allows the electronic accounting meters to clear automatically. Electronic accounting meters may not be cleared without the prior approval of the commission. Both before and after any electronic accounting meter is cleared, all meter readings shall be recorded in the presence of a commission employee.
(g) The primary responsibility for the control and regulation of any video lottery games and video lottery terminals operated pursuant to this article rests with the commission.
(h) The commission shall, directly or through a contract with a third-party vendor other than the video lottery licensee, maintain a central site system of monitoring the lottery terminals utilizing an on-line or dial-up inquiry. The central site system shall be capable of monitoring the operation of each video lottery game or video lottery terminal operating pursuant to this article and, at the direction of the director, immediately disable and cause not to operate any video lottery game and video lottery terminal. As provided in this section, the commission may require the licensed racetrack to pay the cost of a central site computer as part of the licensing requirement.
(1) An applicant for a video lottery license must hold a valid racing license granted by the West Virginia racing commission under provisions of article twenty-three, chapter nineteen 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.
(b) The question of whether video lottery games shall be permitted at pari-mutuel racetracks shall be determined by local option election in each county in which a pari-mutuel racetrack is located. The local option election on this question may be placed on the ballot in each county at any general election. The county commission of the county in which the racetrack is located shall give notice to the public of the election by publication of the notice as a Class II-0 legal advertisement in compliance with the provisions of article three, chapter fifty-nine of this code, and the publication area for the publication shall be the county in which the election is to be held. The date of the last publication of the notice shall fall on a date within the period of the fourteen consecutive days next preceding the election.
On the local option election ballot shall be printed the following:
Shall West Virginia lottery commission video lottery games be permitted within an area at the [name of racetrack] in which pari-mutuel betting is authorized by law?
[ ] Yes[ ] No
(Place a cross mark in the square opposite your choice.)
The ballots shall be counted, returns made and canvassed as in general elections, and the results certified by the commissioners of election to the county commission. The county commission shall, without delay, certify the result of the election to the commission.
(c) Upon receipt of the results of the election from the county commission, and if a majority has voted "yes", the commission shall issue the requested license if the applicant is otherwise qualified for the license. If a majority has voted "no", the commission shall notify the applicant of the results, the application shall be denied, and another election on the issue shall not be held for a period of two years: Provided, That for purposes of this section, the term "two years" means the interval between a general election and the next general election, and in no event shall it mean or encompass a period of time in excess of one hundred four weeks. If a majority has voted "yes", another local option election on the issue shall not be held for a period of five years. A local option election may thereafter be held if a written petition of qualified voters residing within the county equal to at least five percent of the number of persons who were registered to vote in the next preceding general election is received by the county commission of the county in which the horse or dog racetrack is located. The petition may be in any number of counterparts.
The petition shall be in the following form:
Petition For Local Option Election
We, the undersigned legally qualified voters, resident within
the county of __________________, do hereby petition that a special
election be held within the county of _________________ upon the
following question: Shall West Virginia lottery commission video
lottery games be permitted within an area at the [name of
racetrack] in which pari-mutuel betting is authorized by law?
Name Address Date
(Post office or street address)
(d) The commission may not issue any license or permit until background investigations are concluded. The commission shall make an affirmative determination that the applicant is qualified and the applicable license or permit fees have been paid prior to issuing any license or permit.
(e) The commission shall notify the applicant if an application is incomplete and the notification shall state the deficiencies in the application.
(f) The commission shall notify applicants in writing of the denial, suspension or revocation of a permit or license and the reasons for the denial, suspension or revocation in accordance with the provisions of section fifteen of this article.
(g) An applicant may request a hearing to review a license or permit denial, suspension or revocation in accordance with section fifteen of this article.
(h) The following license or permit fees shall be paid annually by each licensed racetrack, or permitted manufacturer, service technician, floor attendant or validation manager:
(1) Racetrack: ................................. $1,000
(2) Manufacturer: ..............................$10,000
(3) Service technician: ...........................$100
(4) Validation manager: ............................$50
(5) Floor attendant: ..............................$50
The fees shall be paid to the commission at the time of license or permit application and on or before the first day of July of each year thereafter, at which time the license or permit may be renewed.
(i) An applicant for a video lottery license shall, prior to the issuance of the license, post a bond or irrevocable letter of credit in a manner and in an amount established by the commission. The bond shall be issued by a surety company authorized to transact business in West Virginia and the company shall be approved by the insurance commissioner of this state as to solvency and responsibility.
(j) The commission shall renew video lottery licenses and permits annually as of the first day of July of each year, if each person seeking license or permit renewal submits the applicable renewal fee, completes all renewal forms provided by the commission, and continues to meet all qualifications for a license or permit.
(k) License and permit holders shall notify the commission of any proposed change of ownership or control of the license or permit holder and of all other transactions or occurrences relevant to license or permit qualification. In order for a license or permit to remain in effect, commission approval is required prior to completion of any proposed change of ownership or control of a license or permit holder.
(l) A license or permit is a privilege personal to the license or permit holder and is not a legal right. A license or permit granted or renewed pursuant to this article may not be transferred or assigned to another person, nor may a license or a permit be pledged as collateral. The purchaser or successor of any license or permit holder shall independently qualify for a license or permit. The sale of more than five percent of a license or permit holder's voting stock, or more than five percent of the voting stock of a corporation which controls the license or permit holder or the sale of a license or permit holder's assets, other than those bought and sold in the ordinary course of business, or any interest therein, to any person not already determined to have met the qualifications of section seven of this article voids the license unless the sale has been approved in advance by the commission.
(1) Promptly report to the commission any facts or circumstances related to video lottery operations which constitute a violation of state or federal law;
(2) Conduct all video lottery activities and functions in a manner which does not pose a threat to the public health, safety or welfare of the citizens of this state, and which does not adversely affect the security or integrity of the lottery;
(3) Hold the commission and this state harmless from and defend and pay for the defense of any and all claims which may be asserted against a license or permit holder, the commission, the state or the employees thereof, arising from the license or permit holder's participation in the video lottery system authorized by this article;
(4) Assist the commission in maximizing video lottery revenues;
(5) Maintain all records required by the commission;
(6) Upon request by the commission, provide the commission access to all records and the physical premises of the business or businesses where the license or permit holder's video lottery activities occur, for the purpose of monitoring or inspecting the license or permit holder's activities and the video lottery games, video lottery terminals and associated equipment; and
(7) Keep current in all payments and obligations to the commission.
(b) Manufacturers shall:
(1) Manufacture terminals and associated equipment for placement in this state in accordance with the specifications and procedures specified in sections five and six of this article;
(2) Manufacture terminals and associated equipment to ensure timely delivery to licensed racetracks;
(3) Maintain and provide an inventory of spare parts to assure the timely repair and continuous operation of licensed video lottery terminals intended for placement in this state;
(4) Provide to licensed racetracks and permitted service technicians technical assistance and training in the service and repair of video lottery terminals and associated equipment so as to assure the continuous authorized operation and play of the video lottery terminals; and
(5) Obtain certification of compliance under the provisions of part fifteen of the federal communication commission rules for all video lottery terminals placed in this state.
(c) Service technicians shall:
(1) Maintain all skills necessary for the timely repair and service of licensed video lottery terminals and associated equipment so as to ensure the continued, approved operation of those terminals;
(2) Attend all commission mandated meetings, seminars and training sessions concerning the repair and maintenance of licensed video lottery terminals and associated equipment; and
(3) Promptly notify the commission of any electronic or mechanical video lottery terminal malfunctions.
(d) Validation managers shall:
(1) Attend all commission mandated meetings, seminars and training sessions concerning the validation and redemption of video lottery winning tickets and the operation of all ticket validation terminals and equipment;
(2) Maintain all skills necessary for the accurate validation of video lottery tickets; and
(3) Supervise video lottery ticket validation procedures at the applicable licensed racetrack.
(e) Floor attendants shall:
(1) Provide change and assistance to persons playing video lottery games in a licensed racetrack video lottery gaming area;
(2) Open video lottery terminal access doors to clear ticket paper jams and to insert new paper ticket tapes into the video lottery terminals; and
(3) Open video lottery terminal access doors to clear bill jams from the bill acceptors in video lottery terminals.
(f) The specific duties required of all licensed racetracks are as follows:
(1) Acquire video lottery terminals by purchase, lease or other assignment and provide a secure location for the placement, operation and play of the video lottery terminals;
(2) Pay for the installation and operation of commission approved telephone lines to provide direct dial-up or on-line communication between each video lottery terminal and the commission's central control computer;
(3) Permit no person to tamper with or interfere with the operation of any video lottery terminal;
(4) Ensure that telephone lines from the commission's central control computer to the video lottery terminals located at the licensed racetrack are at all times connected and prevent any person from tampering or interfering with the operation of the telephone lines;
(5) Ensure that video lottery terminals are within the sight and control of designated employees of the licensed racetrack;
(6) Ensure that video lottery terminals are placed and remain placed in the specific locations within the licensed racetrack which have been approved by the commission. No video lottery terminal or terminals at a racetrack shall be relocated without the prior approval of the commission;
(7) Monitor video lottery terminals to prevent access to or play by persons who are under the age of eighteen years or who are visibly intoxicated;
(8) Maintain at all times sufficient change and cash in the denominations accepted by the video lottery terminals;
(9) Provide no access by a player to an automated teller machine (ATM) in the area of the racetrack where video lottery games are played, accept no credit card or debit card from a player for the exchange or purchase of video lottery game credits or for an advance of coins or currency to be utilized by a player to play video lottery games, and extend no credit, in any manner, to a player so as to enable the player to play a video lottery game;
(10) Pay for all credits won upon presentment of a valid winning video lottery ticket;
(11) Report promptly to the manufacturer and the commission all video lottery terminal malfunctions and notify the commission of the failure of a manufacturer or service technician to provide prompt service and repair of such terminals and associated equipment;
(12) Conduct no video lottery advertising and promotional activities without the prior written approval of the director;
(13) Install, post and display prominently at locations within or about the licensed racetrack, signs, redemption information and other promotional material as required by the commission;
(14) Permit video lottery to be played only during those hours established and approved by the commission;
(15) Maintain general liability insurance coverage for all video lottery terminals in an amount of at least two million dollars per claim;
(16) Promptly notify the commission in writing of any breaks or tears to any logic unit seals;
(17) Assume liability for lost or stolen money from any video lottery terminal; and
(18) Submit an audited financial statement, which has been approved by the commission, to the commission when applying for a license or permit and annually thereafter prior to the time a license or permit may be renewed.
(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:
(1) 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 four percent 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 30,2011 through June 30, 2020, the term
"actual costs and expenses" may include transfers of$ up to $10
million in surplus allocations for each fiscal year, as calculated
by the commission when it has closed its books for the fiscal year,
to the Licensed Racetrack Modernization Fund created by
subdivision(2), subsection (b) of this section. For all fiscal
years beginning on or after July 1, 2001, the commission shall not
receive an amount of gross terminal income in excess of the amount
of gross terminal income received during the fiscal year ending on
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 on June 30, 2001, shall be
deposited into the fund established in section eighteen-a, article
twenty-two of this chapter; and
(2) A Licensed Racetrack Modernization Fund is created within
the lottery fund. For all fiscal years beginning on or after July 1, 2011, and ending with the fiscal year beginning July 1, 2020,
the commission shall deposit such amounts as are available
according to subdivision (1), subsection (b) of this section into
a separate facility modernization account maintained within the
Licensed Racetrack Modernization Fund for each racetrack. Each
racetrack's share of each year's deposit shall be calculated in the
same ratio as each racetrack's apportioned contribution to the four
percent administrative costs and expenses allowance provided for in
subdivision (1), subsection (b) of this section for that year. For
each two dollars expended by a licensed racetrack for facility
modernization improvements at the racetrack, having a useful life
of three or more years and placed in service after July 1, 2011,
the licensed racetrack shall receive $1 in recoupment from its
facility modernization account. If the licensed racetrack's
facility modernization account contains a balance in any fiscal
year, the unexpended balance from that fiscal year will be
available for matching for one additional fiscal year, after which
time, the remaining unused balance carried forward shall revert to
the lottery fund. For purposes of this section, the term "facility
modernization improvements" includes acquisitions of new and unused
video lottery terminals and related equipment. Video lottery
terminals financed through the recoupment provided in this
subdivision must be retained by the licensee in its West Virginia
licensed location for a period of not less than five years from the
date of initial installation.
(c) The amount resulting after the deductions required by
subsection (b) of this section constitutes net terminal income that
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 on 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 thirty percent of net
terminal income, which shall be paid into the State Lottery Fund as
provided in section ten-a of this article;
(2) Until July 1, 2005, fourteen percent 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 of this code, on and after July 1,
2005, the rate shall be seven percent of net terminal income;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income: Provided,
That:
(A) Beginning July 1, 1999, and thereafter, any amount in excess of the two percent 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 fifty percent of the excess
amount; and
(ii) The municipalities of the county shall receive fifty
percent of the excess amount, said fifty percent 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 two percent 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 fifty percent of the excess
amount; and
(ii) The municipality shall receive fifty percent of the
excess amount; and
(C) This proviso shall 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) One percent 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 of
this code and the West Virginia Greyhound Breeding Development Fund
created under section ten of said article shall receive an equal
share of a total of not less than one and one-half percent of the
net terminal income;
(6) The West Virginia Racing Commission shall receive one
percent of the net terminal income which shall be deposited and
used as provided in section thirteen-c, article twenty-three,
chapter nineteen of this code.
(7) A licensee shall receive forty-six and one-half percent of
net terminal income.
(8)(A) The Tourism Promotion Fund established in section
twelve, article two, chapter five-b of this code shall receive
three percent 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 three
percent 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 three percent of net terminal income and the
three percent 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, 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, seven percent 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 in article twenty-three, chapter nineteen of this
code;
(B) The deposit of the seven percent 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 in article twenty-three, chapter nineteen 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 one percent of net terminal income shall be
deposited as follows:
(A) For the fiscal year beginning July 1, 2003, 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 $20,000 of the one percent of net terminal income
provided 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, $100,000 of the one
percent of net terminal income provided 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 $500,000 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) 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
(ii) The remainder of the one percent of net terminal income
and all of the one percent of net terminal income described in
paragraph (B), subdivision (9), subsection (a), section ten-b of
this article 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 $1,500,000 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.
Notwithstanding the provisions of subdivision one, subsection
(c), section ten of this article, beginning on the first day of
July, one thousand nine hundred ninety-five and continuing
thereafter, the net terminal income received by the commission
shall be paid into the state lottery fund created by section
eighteen, article twenty-two of this chapter, to be appropriated by
the Legislature: Provided, That income deposited pursuant to this
section shall not be subject to the provisions of subsections (b),
(c), (d) or (e), section eighteen, article twenty-two of this
chapter.
(1) The Commission shall receive forty-one percent of net
terminal income, which the Commission shall deposit in the State
Excess Lottery Revenue Fund created in section eighteen-a, article
twenty-two of this chapter;
(2) Until the first day of July, two thousand five, eight
percent 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
in article twenty-three, chapter nineteen of this code; on and
after the first day of July, two thousand five, the rate shall be
four percent of net terminal income;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income Provided,
That:
(A) Any amount by which the total amount under this section
and subdivision (3), subsection (c), section ten of this article is
in excess of the two percent received during fiscal year one
thousand nine hundred ninety-nine by a county in which a racetrack is located that has participated in the West Virginia thoroughbred
development fund since on or before the first day of January, one
thousand nine hundred ninety-nine, shall be divided as follows:
(i) The county shall receive fifty percent of the excess
amount; and
(ii) The municipalities of the county shall receive fifty
percent of the excess amount, the fifty percent 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) Any amount by which the total amount under this section
and subdivision (3), subsection (c), section ten of this article is
in excess of the two percent received during fiscal year one
thousand nine hundred ninety-nine 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 the first day of
January, one thousand nine hundred ninety-nine, shall be divided,
if applicable, as follows:
(i) The county shall receive fifty percent of the excess
amount; and
(ii) The municipality shall receive fifty percent of the
excess amount; and
(C) This proviso shall not affect the amount to be received
under this subdivision by any county other than a county described
in paragraph (A) or (B) of this proviso;
(4) One half of one percent 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 of
this code and the West Virginia greyhound breeding development fund
created under section ten of said article shall receive an equal
share of a total of not less than one and one-half percent of the
net terminal income.
(6) The West Virginia Racing Commission shall receive one
percent of the net terminal income which shall be deposited and
used as provided in section thirteen-c, article twenty-three,
chapter nineteen of this code;
(7) A licensee shall receive forty-two percent of net terminal
income;
(8) The tourism promotion fund established in section twelve,
article two, chapter five-b of this code shall receive three
percent of the net terminal income: Provided, That for each fiscal
year beginning after the thirtieth day of June, two thousand four,
this three percent of net terminal income shall be distributed
pursuant to the provisions of paragraph (B), subdivision (8),
subsection (c), section ten of this article;
(9) (A) On and after the first day of July, two thousand five,
four percent 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 together with the total allocation transferred by the
operation of subdivision (9), subsection (c), section ten of this
article totals eleven million dollars, all subsequent distributions
under this subdivision (9) during that fiscal year shall be
deposited in the special fund established by the licensee and used
for payment of regular purses in addition to other amounts provided
in article twenty-three, chapter nineteen of this code;
(B) The deposit of the four percent 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, which 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 in article twenty-three, chapter
nineteen 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 is 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 in its entirety; and
(10) (A) One percent of the 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; and
(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, for each fiscal year beginning after
the thirtieth day of June, two thousand four, this one percent of
net terminal income shall be distributed pursuant to the provisions
of subparagraph (ii), paragraph (B), subdivision (9), subsection
(c), section ten of this article.
(b) The Commission may establish orderly and effective
procedures for the collection and distribution of funds under this
section in accordance with the provisions of this section and
section ten of this article.
(b) A Capital Reinvestment Fund is hereby created within the
Lottery Fund. Forty-two percent of the surcharge amount
attributable to each racetrack shall be retained by the commission
and deposited into a separate Capital Reinvestment Account for that
licensed racetrack. For each dollar expended by a licensed
racetrack for capital improvements at the racetrack, at the
location of any amenity associated with the licensed racetrack's
destination resort facility operations, or at adjacent facilities
owned by the licensee, having a useful life of three or more years
and placed in service after April 1, 2001, the licensed racetrack
shall receive $1 in recoupment from its Capital Reinvestment Fund
Account: Provided, That in the case of thoroughbred horse tracks,
four cents of every dollar in recoupment shall be reserved into a
separate account, which shall only be spent on capital improvements
and upgrading to facilities used for the housing and care of
horses, facilities located inside the perimeter of the racing
surface, including the surface thereof, facilities used for housing
persons responsible for the care of horses, and that any such
capital improvements and upgrading shall be subject to recoupment under this section only if they have been approved by the
Horsemen's Benevolent and Protective Association acting on behalf
of the horsemen: Provided, however, That in the case of greyhound
race tracks, four cents of every dollar in recoupment shall be
spent on capital improvements and upgrading in the kennel area or
other areas at the track. If a licensed racetrack's unrecouped
capital improvements exceed its capital reinvestment fund account
at the end of any fiscal year, the excess improvements may be
carried forward to fifteen subsequent fiscal years.
(c) Fifty-eight percent of the surcharge amount plus any
moneys remaining in a racetrack's Capital Reinvestment Fund Account
at the end of any fiscal year shall be deposited in the State
Excess Lottery Revenue Fund created in section eighteen-a, article
twenty-two of this chapter.
(a) No video lottery terminal may be placed in operation in
this state until the manufacturer provides training in the
service and repair of each approved video lottery terminal model
and service technicians complete such training. Manufacturers
must submit to the commission the following information on each
training program conducted:
(1) An outline of the training curriculum;
(2) A list of the instructors and their qualifications;
(3) Instructional materials; and
(4) The time, dates and location of the training programs.
(b) Manufacturers shall notify all licensed racetracks who
have purchased or leased that manufacturer's video lottery
terminals of all scheduled training programs. Training programs
must be scheduled at convenient locations within this state to
facilitate attendance by service technicians. Manufacturers must
inform licensed racetracks of any new developments in the service
and repair of video lottery terminals and provide appropriate
subsequent training programs.
(c) The manufacturers shall issue training certificates to each person upon successful completion of a video lottery
training program. The certificate shall include the name of the
person who completed the training program and the date and the
location of the training program. A person who successfully
completes training is eligible for a service technician's permit.
No person may conduct maintenance on any video lottery terminal
or associated equipment unless the commission has issued a
service technician permit to that person.
(d) Each manufacturer shall file with the commission the
following information within two weeks after the completion of a
training program:
(1) The name of each person who attended and completed the
training program;
(2) The name of the manufacturer offering the course;
(3) The manufacturer's video lottery terminal models on
which training for service and repair was provided;
(4) The date and location of the training program; and
(5) Copies of all certificates of completion.
(e) A written maintenance log shall be kept within the main
cabinet access area in each video lottery terminal. Every
person, including lottery personnel, who gains entry into any
internal space of a video lottery terminal must sign the log,
record the time and date of entry, record the mechanical meter
readings and list the areas inspected or repaired. The
maintenance log forms shall be retained by licensed racetracks
for a period of three years from the date of the last entry. The
maintenance logs shall be available upon request for inspection by the commission.
(f) Licensed racetracks shall provide the commission with a
master key for access into the main cabinet door of each video
lottery terminal placed in operation. A logic box seal shall be
provided by the commission. The seal shall be affixed by
commission personnel to prevent unauthorized access to the video
lottery terminal logic unit.
(g) No repairs to, or replacement of, the logic board or
circuitry within the logic area may occur unless authorized
commission personnel are present and observe the repairs or
replacement. The logic area seal shall not be broken by anyone
other than authorized commission personnel. Each service
technician shall submit a written report within twenty-four hours
after the repairs or replacement are completed and the report
shall include the serial number of any replacement board and thenew logic area seal number.
(h) The software eproms on the logic board of each video
lottery terminal shall be tested by the commission prior to
sealing the logic area. Licensed racetracks or permit holders
shall notify the commission in writing of any discovered damage,
tears or breaks in the logic area seal and, upon notice, the
video lottery terminal shall be disabled. The video lottery
terminal shall remain disabled until completion by the commission
of an investigation of the seal damage.
(b) All video lottery terminals in licensed racetracks shall
be physically located as follows:
(1) The video lottery location shall be continuously monitored
through the use of a closed circuit television system capable of
recording activity for a continuous 24-hour period. All video
tapes shall be retained for a period of at least thirty days;
(2) Access to video lottery terminal locations shall be
restricted to persons legally entitled by age to play video lottery
games;
(3) The licensed racetrack shall submit for commission
approval a floor plan of the area or areas where video lottery
terminals are to be operated showing terminal locations and security camera mount locations;
(4) No video lottery terminal may be relocated without prior
approval from the commission; and
(5) Operational video lottery terminals may only be located in
the building or structure in which the grandstand area of the
racetrack is located and in the area of the building or structure
where pari-mutuel wagering is permitted under the provisions of
article twenty-three, chapter nineteen of this code: Provided,
That if the commission, before the first day of November, one
thousand nine hundred ninety-three, has authorized any racetrack to
operate video lottery terminals and offer video lottery games in a
location which would not conform to the requirements of this
subdivision, the racetrack may continue to use video lottery
terminals registered with and approved by the commission at that
nonconforming location and to offer the games and any variations or
composites of the games as may be approved by the commission.
(c) A licensee shall allow video lottery games to be played
only on days when live racing is being conducted at the racetrack
and/or on televised racing days: Provided, That this restriction
shall not apply to any racetrack authorized by the commissioner
prior to the first day of November, one thousand nine hundred
ninety-three, to operate video lottery terminals and conduct video lottery games.
(d) Security personnel shall be present during all hours of
operation at each video lottery terminal location. Each license
holder shall employ the number of security personnel the commission
determines is necessary to provide for safe and approved operation
of the video lottery facilities and the safety and well-being of
the players.
(1) The ticket is fully legible and printed on paper approved
by the commission and the ticket contains all information required
by this article;
(2) The ticket is not mutilated, altered, unreadable or
tampered with in any manner;
(3) The ticket is not counterfeit, in whole or in part; and
(4) The ticket is presented by a person authorized to play
video lottery pursuant to this article.
(b) Each licensed racetrack shall designate validation
managers and employees authorized to redeem tickets and to sell and
redeem tokens during the business hours of operation. Credits
shall be immediately paid in cash, by check, by annuitized payments
over time or in the form of a noncash prize, when a player presents
a valid ticket for payment.
(c) Licensed racetracks shall not redeem tickets for credits
awarded on video lottery terminals which are not located on its
premises. A ticket must be presented for payment no later than ten days after the date the ticket is printed. The commission is not
liable for the payment of any video lottery ticket credits.
(d) All tickets redeemed by a licensed racetrack shall be
defaced in a manner which prevents any subsequent presentment and
payment.
(e) The commission is not responsible for any video lottery
terminal malfunction which causes a credit to be wrongfully awarded
or denied to players. The licensed racetrack is solely responsible
for any wrongful award or denial of credits.
(a) Trucking companies or common carriers shipping video
lottery terminals shall be bonded and shall ship all terminals
in sealed trailers.
(b) A manufacturer transporting one or more video lottery
terminals into this state shall, prior to shipment, provide the
commission with the following information on forms prescribed by
the commission:
(1) The full name, address and permit number of the person
shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name, address and license number of the
licensed racetrack to which the video lottery terminals are being
sent and the destination of the terminals if different from the
address;
(4) The number of video lottery terminals in the shipment;
(5) The serial number of each video lottery terminal in the
shipment;
(6) The model number and description of each video lottery
terminal in the shipment; and
(7) The expected arrival date of the video lottery terminals
at their respective destination within this state.
(c) A licensed racetrack which purchases or leases a video
lottery terminal shall, upon receipt of the terminal, provide the
commission with the following information on forms prescribed by
the commission:
(1) The full name, address and license number of the licensed racetrack receiving the video lottery terminal;
(2) The full name, address and permit number of the
manufacturer from whom the video lottery terminal was received;
(3) The serial number of each video lottery terminal
received;
(4) The model number and description of each video lottery
terminal received;
(5) The expected date and time of video lottery terminal
arrival; and
(6) The expected date and time of video lottery terminal
installation, and if a video lottery terminal is not placed in
operation, the licensed racetrack must notify the commission of
the location where the terminal is stored.
(d) Any person transporting a video lottery terminal from
one location to another in this state, other than for repair or
servicing purposes, shall notify the commission in writing prior
to the transportation of the terminal and provide the following
information on forms required by the commission:
(1) The full name, address and license number of the person
or entity transporting the video lottery terminal;
(2) The reason for transporting the video lottery terminal;
(3) The full name, address and license number of the person
or entity to whom the terminal is being sent and the destination
of the video lottery terminal if it is different from the
address;
(4) The serial and model number of the video lottery
terminal;
(5) The video lottery terminal license number, if affixed;
(6) The manufacturer of the video lottery terminal; and
(7) The expected date and time of video lottery terminal
installation or reinstallation.
(e) Any person shipping video lottery terminals to a
destination outside of this state shall, prior to the shipment,
provide the commission with the following information on forms
prescribed by the commission:
(1) The full name, address and license or permit number of
the person shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name and address of the person to whom the
video lottery terminals are being sent and the destination of the
video lottery terminals if different from the address;
(4) The serial number of each video lottery terminal being
shipped;
(5) The model number and description of the video lottery
terminal being shipped;
(6) The video lottery terminal control number, if affixed;
(7) The manufacturer of the video lottery terminal being
shipped; and
(8) The expected date and time of the shipment.
(f) Each video lottery terminal placed in operation in this
state must have a commission registration decal permanently
affixed, with a video lottery terminal registration control
number placed thereon. A decal registration fee is hereby
imposed. The amount of the fee shall equal six percent of the total consideration paid to the manufacturer for the use or the
ownership of the video lottery terminal. The fee shall be paid
by the manufacturer to the commission prior to the receipt of
the registration decal. The registration decal fee shall be
collected by the commission and deposited to the credit of the
general revenue fund of the state. No person other than
authorized commission personnel shall affix or remove a
registration control number. The affixing of the commission
decal on a video lottery terminal evidences that the decal
registration fee has been paid and that the terminal has been
registered, inspected and approved for operation in this state.
No terminal may be transported out of this state until authorized
commission personnel have removed the commission registration
control number.
(a) If the commission refuses to issue a license or permit,
or suspends or revokes a license or permit, it shall make and
enter an order to that effect including a statement of the
reasons for that action and shall, by certified mail, return
receipt requested, mail a copy of the order to the applicant, or
the license or permit holder, or serve the same in the manner
provided for the service of legal process.
(b) Any applicant or licensee or permit holder adversely
affected by such order has the right to a hearing thereon before
the commission or a person designated as hearing examiner, if a
petition in writing requesting a hearing is served upon the
commission within ten days following the receipt of the order by
such applicant, or license or permit holder.
(c) The petition for a hearing shall be in writing and shall
include an original and one copy. The petition must contain the
following:
(1) A clear and concise statement of each error which the
petitioner alleges to have been committed by the commission in refusing to issue a license or permit, or suspending or revoking
a license or permit, with each assignment of error being shown
in separately numbered paragraphs.
(2) A clear and concise statement of fact upon which the
petitioner relies as sustaining each assignment of error.
(3) A prayer setting forth the relief sought.
(4) The signature of the petitioner.
(5) Verification by the petitioner.
(d) The person demanding a hearing shall give security for
the cost of the hearing in the amount of three hundred dollars
in the form of certified check, cashier's check or money order,
which shall accompany the petition demanding a hearing.
(e) In all hearings held under this article, oral and
documentary evidence may be required through the use of subpoenas
and subpoenas duces tecum. Subpoenas or subpoenas duces tecum
may be issued by either the commission or its duly appointed
hearing examiner and the following provisions shall govern and
control:
(1) Every subpoena or subpoena duces tecum must be served at
least five days before the return date thereof, either by
personal service made by any person eighteen years of age or
older, or by registered or certified mail, but a return
acknowledgment signed by the person to whom the subpoena or
subpoena duces tecum is directed is required to prove service by
registered or certified mail.
(2) All subpoenas and subpoenas duces tecum shall be issued
in the name of the commission. Service of subpoenas and subpoenas duces tecum issued at the insistence of the commission
are the responsibility of the commission, but any party
requesting issuance of a subpoena or subpoena duces tecum is
responsible for service of any such subpoena. Any person who
serves a subpoena or subpoena duces tecum is entitled to the same
fee as sheriffs who serve witness subpoenas for the circuit
courts of this state and fees for the attendance and travel of
witnesses shall be the same as for witnesses before the circuit
courts of this state.
(3) All fees shall be paid by the commission if the subpoena
or subpoena duces tecum is issued, without the request of an
interested party, at the insistence of the commission.
(4) All fees related to any subpoenas or subpoena duces
tecum issued at the insistence of an interested party shall be
paid by the interested party.
(5) All requests by an interested party for a subpoena and
subpoena duces tecum shall be in writing and shall contain a
statement acknowledging that the requesting party agrees to pay
such fees.
(6) Any person receiving a subpoena or subpoena duces tecum
issued hereunder shall honor the same as though it were issued
by a circuit court of this state and shall appear as a witness
or produce such books, records or papers as are requested in
response to a subpoena or subpoena duces tecum. In case of
disobedience or neglect of any subpoena or subpoena duces tecum
served on any person or the refusal of any witness to testify to
any matter regarding which he or she may be lawfully interrogated, the circuit court of the county in which the
hearing is being held, or the judge thereof in vacation, shall,
upon application by the commission, compel obedience by contempt
proceedings as in the case of disobedience of the requirements of
a subpoena or subpoena duces tecum issued from the circuit court
or a refusal to testify therein.
(f) The service of a petition for hearing upon the
commission shall not operate to suspend the execution of any
suspension or revocation of a video lottery license or permit
with respect to which a hearing is being demanded.
(g) The commission shall set a date for any hearing demanded
and notify the person demanding a hearing not later than seven
days before the hearing date of the date and time of the hearing,
which hearing shall be held within thirty days after receipt of
the petition.
(h) Hearings may not be delayed by a motion for continuance
made less than ten days before the date set for the hearing.
(i) The commission may designate a hearing examiner to
conduct any hearing.
(j) The petitioner may appear individually, or by legal
counsel.
(k) The petitioner, or his duly authorized representative,
may, with the approval of the commission, waive the right to a
hearing and agree to submit the case for decision upon the
petition and record, with or without a written brief. Waivers
and agreements must be in writing or upon the record.
(l) The petitioner shall be given an opportunity for argument within the time limits fixed by the commission following
submission of evidence. The commission, upon request of the
petitioner, shall accept briefs in addition to or in lieu of
argument. Briefs must be filed within ten days after the hearing
date.
(m) The commission may admit any relevant evidence, except
that it shall observe the rules of privilege recognized by law.
A finding is to be supported by the kind of evidence commonly
relied upon by reasonably prudent men in the conduct of their
affairs, whether or not the evidence would be admissible before
a jury. The commission may exclude any evidence which is
irrelevant, unduly repetitious or lacking in substantial
probative effect.
(n) There shall be a record made of all hearings held
pursuant to this article.
(o) After the conclusion of the hearing and within ten days
of receipt of the transcript thereof and receipt of any briefs,
the person designated by the commission as hearing examiner shall
prepare a recommended decision, supported by findings of fact and
conclusions of law, affirming, modifying or vacating the earlier
order of the commission. Thereafter, the commission, within ten
days of receipt of the recommended decision, shall either accept
or reject the recommended decision, and if it accepts the
decision, it shall cause the director to sign and acknowledge the
recommended decision as its own, after having reviewed the
transcript and all exhibits attached and affixed thereto; and if
it shall reject the same, it shall within ten days of receipt of the recommended decision prepare a decision setting forth its own
findings of fact and conclusions of law. In either event, the
decision shall be final unless vacated or modified upon judicial
review thereof. A copy of the decision shall be served upon eachparty to the hearing and their attorney of record, if any, in
person or by registered or certified mail.
(p) A petition for appeal by an applicant, licensee or
permit holder may be filed with the circuit court of Kanawha
County, West Virginia, or with the circuit court of the county in
which the racetrack is located, if filed no later than thirty
days after the date upon which the petitioner receives notice of
the final decision of the commission.
(a) A licensee who places a video lottery game or video
lottery terminal into play without authority of the commission to
do so is guilty of a misdemeanor, and, upon conviction thereof,
shall be confined in jail not more than one year and fined not
more than five thousand dollars, except that in the case of a
person other than a natural person, the amount of the fine
imposed may be not more than twenty-five thousand dollars.
(b) A person who operates, carries on or exposes for play a
video lottery game or video lottery terminal after the person's
license has expired and prior to the actual renewal thereof is
guilty of a misdemeanor, and, upon conviction thereof, shall be
confined in jail not more than one year and fined not more than
five thousand dollars, except that in the case of a person other
than a natural person, the amount of the fine imposed may be not
more than twenty-five thousand dollars.
(c) A licensee who possesses any video lottery terminal or
other device, equipment or material which the person knows has
been manufactured, distributed, sold, tampered with or serviced
in violation of the provisions of this article is guilty of a
misdemeanor, and, upon conviction thereof, shall be confined in
jail not more than one year and fined not more than five thousand
dollars, except that in the case of a person other than a natural
person, the amount of the fine imposed may be not more than
twenty-five thousand dollars.
(d) A licensee who knowingly conducts, carries on, operates
or exposes for play, or allows to be conducted, carried on, operated or exposed for play any video lottery game, video
lottery terminal, or other device, equipment or material which
has in any manner been tampered with, or placed in a condition,
or operated in a manner, the result of which tends to deceive
the public or tends to alter the normal random selection of
characteristics or the normal chance of the video lottery game
which could determine or alter the result of the game is guilty
of a misdemeanor, and, upon conviction thereof, shall be confined
in jail not more than one year and fined not more than five
thousand dollars, except that in the case of a person other than
a natural person, the amount of the fine imposed may be not more
than fifty thousand dollars.
(e) A licensee who employs or continues to employ an
individual, not issued a permit under the provisions of this
article, in a position with duties which would require a permit
under the provisions of this article is guilty of a misdemeanor,
and, upon conviction thereof, shall be confined in jail not more
than one year and fined not more than five thousand dollars,
except that in the case of a person other than a natural person,
the amount of the fine imposed may be not more than twenty-five
thousand dollars.
(f) A person who, without obtaining the requisite permit as
provided for in this article, works or is employed in a position
with duties which would require a permit under the provisions of
this article is guilty of a misdemeanor, and, upon conviction
thereof, shall be confined in jail not more than one year and
fined not more than ten thousand dollars.
(g) A person who, while a video lottery game is being played
at a licensed racetrack, uses, or assists another in the use of,
an electronic, electrical, or mechanical device which is
designed, constructed, or programmed specifically for use in
obtaining an advantage at playing any video lottery game is
guilty of a misdemeanor, and, upon conviction thereof, shall be
confined in jail not more than six months or fined not more than
one thousand dollars, or both.
(h) A person who knowingly violates a provision of this
article, or the rules of play or game rules of a video lottery
game and who profits thereby in an amount equal to one thousand
dollars or more, is guilty of a felony, and, upon conviction
thereof, shall be imprisoned in the penitentiary not less than
one nor more than ten years, or, in the discretion of the court,be confined in jail not more than one year and shall be fined not
more than two thousand five hundred dollars. If the person
profits thereby in an amount less than one thousand dollars, such
person is guilty of a misdemeanor, and, upon conviction thereof,
shall be confined in jail for a term not to exceed one year or
fined not to exceed two thousand five hundred dollars, or both.
(i) A person who fails to perform any of the duties or
obligations created and imposed upon them by the provisions of
this article shall be subject to a civil penalty as may be
determined by the commission, not to exceed ten thousand dollars.
In the event of a disagreement between the racing commission
and the lottery commission with regard to their respective duties
or responsibilities in carrying out the purposes of this article,
such disagreement shall be resolved by the secretary of the
department of tax and revenue in a manner not inconsistent with
the provisions of this article, article twenty-two-a of this
chapter and article twenty-three, chapter nineteen of this code.
If any provision of this article or the application thereof
to any person or circumstance is held invalid, such invalidity
shall not affect other provisions or applications of this
article, and to this end the provisions of this article are
declared to be severable.
(b) The Department of Health and Human Resources shall
administer the grants and funds issued from the "Compulsive
Gambling Treatment Fund".
(c) The Department of Health and Human Resources shall develop
criteria consistent with this section which a treatment program for
compulsive gamblers must meet in order to become eligible for a
grant from the funds made available for treatment programs pursuant
to this provision.
(d) The Department of Health and Human Resources is not
subject to the purchasing requirements as set forth in the
legislative rule of the Purchasing Division of the Department of
Administration: Provided, That the Department of Health and Human
Resources shall comply with all contract requirements set forth in
this section.
(e) The Department of Health and Human Resources shall develop
procedures for bidding and awarding the contract, which must
include:
(1) The procedures to be followed for submitting bids and the
procedures for making awards;
(2) The proposed general terms and conditions for the
contract;
(3) The description of the commodities and services required
for the contract, with sufficient clarity to assure that there is
a comprehensive understanding of the project's scope and
requirements, including, but not limited to, the following
elements:
(A) Services to be provided, including education, prevention,
crisis intervention, outreach, assessment, referral and treatment
for problem gamblers, and protocols for emergency treatment;
(B) Requirements for the business and professional licensing
of providers, parameters for media-related advertising and public
service announcements;
(C) Training, licensing, monitoring, evaluation and reporting
requirements;
(D) Requirements for maintaining the confidentiality of the
client population; and
(E) Rights to conduct financial and performance audits;
(4) A proposed time schedule commencement and completion of
the contract;
(5) A budget for the contract;
(6) Requirements or restrictions for the subletting of
specific portions of the contract, if any; and
(7) Requirements for professional liability and other
insurance coverage.
(f) The Department of Health and Human Resources may award the
contract based on low bid, best value, sole source or other basis,
or may choose to reject all bids and reissue an invitation for
bids: Provided, That the Department of Health and Human Resources
shall document the basis of its decisions under this subsection and
shall report its decisions in the annual report required in
subsection (j) of this section.
(g) The Department of Health and Human Resources shall hold a
post award conference with the contractor to ensure a clear and
mutual understanding of all contract terms and conditions, and the
respective responsibilities of all parties. The agenda for the
conference shall include, at a minimum, the introduction of all
participants and identification of department and contractor key
personnel, and discussion of the following items:
(1) The scope of the contract, including specifications of
requirements set forth in the bid request;
(2) The contract terms and conditions, particularly any
special contract provisions;
(3) The technical and reporting requirements of the contract;
(4) The contract administration procedures, including contract monitoring and progress measurement;
(5) The rights and obligations of both parties and the
contractor performance evaluation procedures;
(6) An explanation that the contractor will be evaluated on
its performance both during and at the conclusion of the contract
and that such information may be considered in the selection of
future contracts;
(7) Potential contract problem areas and possible solutions;
(8) Invoicing requirements and payment procedures, with
particular attention to whether payment will be made according to
outcomes achieved by the contractor; and
(9) An explanation of the limits of authority of the personnel
of both the department and the contractor.
(h) The Department of Health and Human Resources shall develop
a comprehensive and objective monitoring checklist which:
(1) Measures treatment outcomes;
(2) Monitors compliance with contract requirements; and
(3) Assesses contractor performance on a quarterly and annual
basis.
(i) The commission may not influence or interfere with the
operation of the program or the advertising and marketing decisions
of the contractor.
(j) The Department of Health and Human Resources may monitor
contract performance, review compliance with the contract's terms
and conditions, request and review pertinent information in support of tendered invoices and conduct other investigation so as to
enable it to properly assess whether the project's objectives and
the contract's terms and conditions are being met. However, the
Department of Health and Human Resources may not unduly influence
or interfere with the operation of the program or the advertising
and marketing decisions of the contractor.
(k) Once any contract to render services under a compulsive
gambling treatment program is awarded pursuant to this section, the
contract shall be administrated by the Department of Health and
Human Resources, and the department shall maintain all records
pertaining to each request for reimbursement and disbursement for
under said contract for a minimum of five (5) years.
(l) The contractor may prominently promote, display or
advertise the Compulsive Gambler's Treatment Program, its purpose,
its hotline or its program events in any location in which the
Lottery Commission promotes, displays, advertises or conducts
operations or in any other location: Provided, That the Lottery
Commission's name, logo or other indicia may not appear on any
advertising, marketing or promotional material of the contractor.
(m) The Department of Health and Human Resources shall report
annually to the Joint Committee on Government and Finance on the
amount of program funds distributed, the amount of administrative
fee retained by the department and its use of the fee, the number
of persons served by the program, and on each requirement set forth
in this section.
Note: WV Code updated with legislation passed through the 2012 1st Special Session
(a) For all years beginning on or after the first day of July,
two thousand one, any amount of net terminal income generated
annually by a licensed racetrack in excess of the amount of net
terminal income generated by that licensed racetrack during the
fiscal year ending on the thirtieth day of June, two thousand one,
shall be divided as follows:
(a) For all fiscal years beginning on or after July 1, 2001,
there shall be imposed a surcharge of ten percent against the
excess of total net terminal income generated from a licensed
racetrack for that fiscal year over total net terminal income from
that licensed racetrack for the fiscal year ending June 30, 2001.
(a) A racetrack which has been licensed to conduct video
lottery games has the right to install and operate up to four
hundred video lottery terminals at a licensed racetrack. A
licensed racetrack may apply to the commission for authorization to
install and operate more than four hundred video lottery terminals.
If the commission determines that the installation of additional
machines is in the best interest of the licensed racetrack, the
lottery commission and the citizens of this state, the commission
may grant permission to install and operate additional machines.
(a) No payment for credits awarded on a video lottery terminal
may be made unless the ticket meets the following requirements:
(a) There is hereby created and established a separate special
account to be known as the "Compulsive Gambling Treatment Fund".
The fund shall be appropriated from the Commission's administrative
expense account and shall be not less than one hundred fifty
thousand dollars nor more than five hundred thousand dollars per
fiscal year, as determined by the commission, as well as other
amounts designated for in this chapter to provide funds for
compulsive gambling treatment programs in the state.
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