COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 575
(By Senators Guills, Caruth, Kessler, Bowman and Foster)
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[Originating in the Committee on the Judiciary;
reported March 19, 2009.]
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A BILL to amend and reenact §29-25-1, §29-25-2, §29-25-3, §29-25-5,
§29-25-6, §29-25-8, §29-25-9, §29-25-11, §29-25-12, §29-25-13,
§29-25-16, §29-25-17, §29-25-18, §29-25-19, §29-25-20,
§29-25-21, §29-25-22, §29-25-23, §29-25-24, §29-25-25 and
§29-25-26 of the Code of West Virginia, 1931, as amended; and
to amend said code by adding thereto twelve new sections,
designated §29-25-22a, §29-25-28, §29-25-29, §29-25-30,
§29-25-31, §29-25-32, §29-25-33, §29-25-34, §29-25-35,
§29-25-36, §29-25-37 and §29-25-38 of said code, all relating
to gaming at a historic resort hotel and pari-mutuel
racetracks generally; updating and conforming provisions for
consistency purposes between hotel and racetracks; legislative
findings and intent; authorizing certain games of chance;
modifying licensure requirements and fees therefor; renaming
State Gaming Fund the Historic Resort Hotel Fund; distributing
revenue; creating formula for renewal fee assessments;
expanding licensees' authority to set wagers with commission approval; redefining gross terminal income to allow and
account for promotional play at hotel and racetracks; defining
terms; authorizing hotel to contract for management services
with commission approval; establishing Human Resource Benefit
Advisory Board and setting criteria for membership thereon and
powers; authorizing certain complimentary services;
restricting who may enter the designated gaming area of the
hotel to overnight guests, certain participants at hotel-based
events and residents; clarifying forfeiture of property
provisions; authorizing commission to operate slot machines
and video lottery games; establishing requirements for video
lottery terminals; establishing specific duties required of
the gaming facility; creating Capital Reinvestment Fund;
imposing surcharge against share of gross terminal income to
be paid into the Capital Reinvestment Fund; declaring all
authorized games of chance to be owned by the state,
preempting inconsistent county and municipal ordinances or
rules; declaring exemption from federal law to facilitate
authorization of legal gaming; establishing rules of play and
dispute resolution; authorizing shipment of gambling devices
into state; modifying distribution of revenue; license
suspension and revocation; civil penalties; authorizing
emergency rulemaking; and establishing and modifying criminal
offenses and penalties.
Be it enacted by the Legislature of West Virginia:
That §29-25-1, §29-25-2, §29-25-3, §29-25-5, §29-25-6, §29-25-8, §29-25-9, §29-25-11, §29-25-12, §29-25-13, §29-25-16,
§29-25-17, §29-25-18, §29-25-19, §29-25-20, §29-25-21, §29-25-22,
§29-25-23, §29-25-24, §29-25-25 and §29-25-26 of the Code of West
Virginia, 1931, as amended, be amended and reenacted; and that said
code be amended by adding thereto twelve new sections, designated
§29-25-22a, §29-25-28, §29-25-29, §29-25-30, §29-25-31, §29-25-32,
§29-25-33, §29-25-34, §29-25-35, §29-25-36, §29-25-37 and
§29-25-38, all to read as follows:
ARTICLE 25. AUTHORIZED GAMING FACILITY.
§29-25-1. Authorization of limited gaming facility; findings;
intent.
(a)
Operation of authorized games of chance. --
Notwithstanding any provision of law to the contrary, the operation
of West Virginia lottery games permitted by this article and the
related operation of a gaming facility and ancillary activities is
not unlawful when conducted under the terms specified in this
article and article twenty-two-c of this chapter.
(b)
Legislative findings. -- The Legislature finds and
declares that the tourism industry plays a critical role in the
economy of this state and that a substantial state interest exists
in protecting that industry. It further finds and declares that
the authorization of the operation of a gaming facility at no more
than one well-established historic resort hotel in this state as
provided in this article will serve to protect and enhance the
tourism industry, and indirectly other segments of the economy of this state, by providing a resort hotel amenity which is becoming
increasingly important to many actual and potential resort hotel
patrons.
The Legislature finds and declares that video lottery
operations pursuant to
subsection (c), section
three twenty-eight
of this article and the operation of the other authorized games of
chance permitted by this article constitute the operation of
lotteries within the purview of section thirty-six, article VI of
the Constitution of West Virginia.
(c)
Legislative intent. -- It is the intent of the Legislature
in the enactment of this article to promote tourism and year-round
employment in this state. It is expressly not the intent of the
Legislature to promote gaming. As a consequence, it is the intent
of the Legislature to allow limited gaming as authorized by this
article and article twenty-two-c of this chapter with all moneys
gained from the operation of the gaming facility, other than those
necessary to reimburse reasonable costs of operation, to inure to
the benefit of the state.
Further, it is the intent of the
Legislature that amendments made to this article by the 2009
Regular Session will establish appropriate conformity between the
operations of video lottery and authorized games of chance at the
licensed gaming facility and the operations of video lottery and
table games at the pari-mutuel racetracks licensed under article
twenty-two-a and article twenty-two-c of this chapter.
§29-25-2. Definitions.
As used in this article unless the context otherwise requires, the following words and phrases have meanings indicated:
(a) "Applicant" means any person or entity applying for a
license.
(b) "Adjusted gross receipts" means the gross receipts of a
gaming facility from authorized games of chance less winnings paid
to wagerers in such games.
(c) "Annual average gross receipts of the pari-mutuel
racetracks with table games licenses" means the amount obtained by
adding the adjusted gross receipts of all West Virginia pari-mutuel
racetracks with table games licenses, and then dividing that
calculation by the number of West Virginia pari-mutuel racetracks
with table games licenses.
(c) (d) "Authorized game of chance"
includes means baccarat,
twenty-one or blackjack, poker, craps, roulette, wheel of fortune,
video lottery games and any other Monte Carlo style table game
expressly authorized by rule of the commission, but expressly
excludes punchboard, faro, keno, numbers ticket, push card, jar
ticket, pull tab or similar games.
(e) "Background investigation" means a security, criminal and
credit investigation of an applicant who has applied for the
issuance or renewal or a license pursuant to this article, or a
licensee who holds a current license.
(d) (f) "Controlling interest" means:
(1) For a partnership, an interest as a general or limited
partner holding more than
fifty five percent interest in the
entity;
(2) For a corporation, an interest of more than
fifty five
percent of the stock in the corporation; and
(3) For any other entity, an ownership interest of more than
fifty five percent in the entity.
(e) (g) "Controlling person" means, with respect to another
person, any person directly or indirectly owning or holding a
controlling interest in that other person.
(f) (h) "Commission" means the State Lottery Commission
created in section four, article twenty-two, chapter twenty-nine of
this code.
(i) "Designated gaming area" means one or more specific floor
areas of a licensed gaming facility within which the commission has
authorized operation of video lottery terminals or authorized games
of chance, or the operation of both video lottery terminals and
authorized games of chance.
(g)(j) "Director" shall mean the director of the State
Lottery Commission.
(k) "EPROM", an "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 can
also be in the form of CD ROM, flash ROM 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 property of the State of West Virginia.
(l) "Fringe benefits" means sickness and accident benefits and
benefits relating to medical and pension coverage.
(h) (m) "Gaming devices and supplies" mean gaming tables for
all authorized games of chance, roulette wheels, wheels of fortune,
video lottery terminals, cards, dice, chips, tokens, markers or any
other mechanical, electronic or other device, mechanism or
equipment or related supplies utilized in the operation of an
authorized game of chance.
(i) (n) "Gaming facility" means a designated area on the
premises of an
existing historic resort hotel in which authorized
games of chance are conducted by a gaming licensee.
(j) (o) "Gaming licensee" means the licensed operator of a
gaming facility.
(k) (p) "Gross receipts" means the total amount of money
exchanged for the purchase of chips, tokens, or electronic cards by
patrons of a gaming facility reduced by gross terminal income to
the
extend extent gross terminal income is included in the amount
of money exchanged.
(l) (q) "Gross terminal income,"
has the same meaning ascribed
to the term as set forth in article twenty-two-a of this chapter as
used in this article, and as used in article twenty-two-a of this
chapter, means the total amount of cash, vouchers or tokens
inserted into the video lottery terminals operated by a licensee,
minus promotional credits played, and 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.
(m) (r) "Historic resort hotel" means a resort hotel registered with the United States Department of the Interior as a
national historic landmark in its National Registry of Historic
Places having not fewer than five hundred guest rooms under common
ownership and having substantial recreational guest amenities in
addition to the gaming facility.
(s)
"State gaming "Historic Resort Hotel Fund" means the
special fund in the State Treasury created in section twenty-two of
this article.
(t) "Historic resort hotel licensee" means the historic resort
hotel with the license to operate a gaming facility as provided by
this chapter.
(u) "Human Resource Benefit Fund" means the special fund in
the State Treasury created in section twenty-two-a of this article.
(v) "Human Resource Benefit Advisory Board" or "board" means
the advisory board created in section twenty-two-a of this article.
(n) (w) "License" means a license issued by the commission,
including:
(1) A license to operate a gaming facility;
(2) A license to supply gaming devices and supplies to a
gaming facility;
or
(3) A license to be employed in connection with the operation
of a gaming facility;
or
(4) A license to provide management services under a contract
to a gaming facility under this article.
(o) (x) "Licensed gaming facility employee" means any
individual licensed to be employed by a gaming licensee in connection with the operation of a gaming facility.
(p) (y) "Licensed gaming facility supplier" means a person who
is licensed by the commission to engage in the business of
supplying gaming devices and gaming supplies to a gaming facility.
(q) (z) "Licensee" means a gaming licensee, a licensed gaming
facility supplier or a licensed gaming facility employee.
(aa) "Manufacturer" means any person holding a license 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 gaming facility in
West Virginia, and who contracts directly with the licensee for the
sale, lease or other assignment to a licensed gaming facility in
West Virginia.
(bb) "Net terminal income" means gross terminal income minus
an amount deducted by the commission to reimburse the commission
for its actual cost of administering video lottery at the licensed
gaming facility. 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) (cc) "Person" means any natural person, corporation,
association, partnership, limited partnership, limited liability
company or other entity, regardless of its form, structure or
nature.
(dd) "Premises of an existing historic resort hotel" means the
historic resort hotel, attachments of the historic resort hotel,
and the traditional, immediate grounds of the historic resort
hotel.
(ee) "Promotional credits" means credits given by the licensed
gaming facility or licensed racetrack to players allowing limited
free play of video lottery terminals in total amounts and under
conditions approved in advance by the commission.
(t) (ff) "Video lottery
games game,"
and video lottery
terminals" shall have the same meaning ascribed the terms in
article twenty-two-a of this chapter as used in this article, and
as used in article twenty-two-a of this chapter, 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 cash, vouchers or
tokens into a video lottery terminal, which causes game play
credits to be displayed on the video lottery terminal and, with
respect to which, each game play credits 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 a 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.
(gg) "Wager" means a sum of money or thing of value risked on
an uncertain occurrence.
§29-25-3. Commission duties and powers.
(a)
Duties. -- In addition to the duties set forth elsewhere
in this article, the commission shall:
(1) Establish
minimum standards for gaming devices and
supplies, including electronic or mechanical gaming devices;
(2) Approve,
modify or reject game rules
of play for all
authorized games of chance proposed to be operated by a gaming
licensee;
(3)
Establish standards governing gaming facilities generally,
Approve, modify or reject minimum internal control standards
proposed by the licensee gaming facility for authorized games of
chance, including the maintenance of financial books and records;
(4) Provide staff to supervise, inspect and monitor the
operation of any gaming facility, including inspection of gaming
devices and supplies used in the operation to assure continuous
compliance with all rules of the commission and provisions of this article;
(5) Establish minimum levels of insurance to be maintained
with respect to a gaming facility;
(6) Investigate applicants to determine eligibility for any
license and, where appropriate, select among competing applicants;
(7) Designate appropriate classifications of personnel to be
employed in the operation of a gaming facility and establish
appropriate licensing standards within the classifications;
(8) Issue all licenses;
(9) Charge and collect the taxes and fees authorized, required
or specified in this article:
and receive, accept and pay taxes
and fees collected under this article into the state gaming fund
(i) Receive, accept and pay the specified percentage of taxes
collected under sections twenty and twenty-one of this article into
the Historic Resort Hotel Fund; and
(ii) Receive, accept and pay the specified percentage of taxes
collected under sections twenty and twenty-one of this article into
the Human Resource Benefit Fund;
(10) Maintain a record of all licenses issued;
(11) Keep a public record of all commission actions and
proceedings; and
(12) File a written annual report to the Governor, the
President of the Senate and the Speaker of the House of Delegates
on or before January 30 of each year and any additional reports as
the Governor or Legislature may request.
(b)
Powers. -- In addition to the powers set forth elsewhere in this article, the commission has the following powers:
(1) To sue to enforce any provision of this article by
injunction;
(2) To hold hearings, administer oaths and issue subpoenas for
the attendance of a witness to testify and to produce evidence;
(3) To enter a gaming facility at any time and without notice
to ensure strict compliance with the rules of the commission;
(4) To bar, for cause, any person from entering or
participating in any capacity in the operation of a gaming
facility; and
(5) To exercise such other powers as may be necessary to
effectuate the provisions of this article.
(c)Video lottery games. -- The commission is authorized to
implement and operate video lottery games at the gaming facility
licensed pursuant to this article consistent with the gaming
licensee's operation of the gaming facility. With respect to video
lottery games the provisions of article twenty-two-a of this
chapter apply to this article, except in the event of a conflict or
inconsistency between any of the provisions of this article and the
provisions of article twenty-two-a of this chapter. In that event,
the provisions of this article shall supersede any conflicting or
inconsistent provisions contained in article twenty-two-a of this
chapter. In carrying out its authority hereunder, the commission
may: (1) Specify by rule additional licensure and fee requirements
consistent with the provisions of article twenty-two-a respecting
video lottery manufacturers, service technicians and validation managers; and (2) adopt and specify any reasonable procedure,
protocol or requirement to enable video lottery terminals to
effectively and efficiently communicates with the commission's
central computer system used in administering article twenty-two-a
of this chapter.
§29-25-5. Rules.
The commission shall propose for promulgation legislative
rules in accordance with the provisions of article three, chapter
twenty-nine-a of this code as are necessary to provide for
implementation and enforcement of the provisions of this article.
Any such
legislative rules proposed by the commission before
September
one thousand nine hundred ninety-nine 2009, may be by
emergency rule.
§29-25-6. Law enforcement.
(a)
Generally. -- Notwithstanding any provision of this code
to the contrary, the
director may commission shall, by contract or
cooperative
agreements, with state, county or municipal law
enforcement agencies operating in the county in which the gaming
facility is located arrange for such law enforcement services as
agreement with the West Virginia State Police, arrange for those
law-enforcement services uniquely related to gaming as such occurs
at the gaming facility that are necessary to enforce the provisions
of this article.
(b)
Costs. --The actual cost of services provided by
the
State Police or municipal law enforcement agencies in connection with enforcement of the provisions of this article West Virginia
State Police pursuant to a contract or cooperative agreement
entered into pursuant to the provisions of subsection (a) of this
section, including, but not limited to necessary training costs,
shall be paid
from the state gaming fund, which cost shall include
all costs of required training and equipment as well as salary,
benefits and other direct costs of additional required personnel
by the commission as an administrative expense.
The costs of services related to a gaming facility provided by
law-enforcement officers of the county in which such gaming
facility is located shall be paid from that portion of the state
gaming fund allocated to such county. The costs shall include all
costs of required training and equipment as well as salary,
benefits and other direct costs of additional personnel.
(c) Notwithstanding any provision of this code to the
contrary, the West Virginia State Police shall have exclusive
jurisdiction over felony offenses committed on the grounds of the
gaming facility.
§29-25-8. Licenses required.
(a) No person may engage in any activity in connection with a
gaming facility in this state for which a license is required by
subsection (b) of this section unless that person has been licensed
by the commission in accordance with this article.
(b) Licenses are required for the following purposes:
(1) For any person engaging in the business of operating a
gaming facility in the state;
(2) For any person engaging in the business of supplying a
gaming facility with gaming devices, supplies or services;
if the
gaming facility expends more than fifty thousand dollars annually
with such person
(3) For any individual employed by a gaming licensee in
connection with the operation of a gaming facility in the state;
and
(4) For any person providing management services under a
contract to a gaming facility.
(c) Any license required under this article shall be in
addition to all other licenses or permits otherwise required by
law.
§29-25-9. License to operate a gaming facility.
(a)
Single license. -- The commission may issue only one
license to operate a gaming facility. If the one license
limitation in the preceding sentence is found to be
unconstitutional in a final, nonappealable order by a court of
competent jurisdiction, the commission shall have no authority to
issue any license under this article and, in such event, the
provisions of this article shall not be severable, and any license
issued under the provisions of this article prior thereto shall be
void. The Legislature intends that no more than one license to
operate one gaming facility in this state shall be authorized in
any event.
(b)
Applicant qualifications. -- Any applicant must be the
owner or be wholly owned by the owner of an existing historic resort hotel in which the gaming facility is to be located, and the
resort hotel must be located within the jurisdiction of a county
approving the operation of a gaming facility in accordance with
section seven of this article. Any applicant must meet the
qualifications and requirements set forth in this article and rules
adopted by the commission. In determining whether to grant a
license to operate a gaming facility to an applicant, the
commission shall consider:
(1) The character, reputation, experience and financial
integrity of the applicant and any controlling person of the
applicant;
(2) Whether the applicant has adequate capital to construct
and maintain the proposed gaming facility for the duration of a
license;
(3) The extent to which the applicant meets standards
contained in rules adopted by the commission relating to public
safety or other standards; and
(4) The plan submitted by the applicant regarding employment
levels and the extent to which the submitted plan demonstrates an
ability on the part of the applicant to create at least one hundred
full-time equivalent jobs with a salary and benefit package
commensurate with existing employees at the historic resort hotel.
(c)
Conditions attached to license. -- A license to operate
a gaming facility may only be granted to an applicant upon the
express condition that: Floor plan submission requirement. --
Prior to commencing the operation of any games of chance in a designated gaming area, the gaming facility licensee shall submit
to the commission for its approval a detailed floor plan depicting
the location of the designated gaming area in which games of chance
gaming equipment will be located and its proposed arrangement of
the games of chance gaming equipment. If the floor plans for the
designated gaming area preserves the historic integrity of the
historic resort hotel where the licensed gaming facility is
located, then any floor plan submission that satisfies the
requirements of the rules promulgated by the commission shall be
considered approved by the commission unless a gaming facility is
notified in writing to the contrary within one month of filing a
detailed floor plan.
(1)The licensee may not enter into any management service
contract, understanding or arrangement of any kind which would act
to permit any person other than the licensee to operate a licensed
gaming facility unless the management service contract,
understanding or arrangement is in writing and has been approved by
the commission, which approval shall be conditioned upon successful
completion of a thorough background investigation at the expense of
the licensee;
(2) The licensee may not in any manner permit a person other
than the licensee to have a share, percentage or proportion of any
profits generated from the operation of a gaming facility;
(3) The licensee may not in any manner permit a person other
than the licensee to have a share, percentage or proportion of any
profits generated from the operation of the gaming facility without the prior written approval of the director of the Lottery
Commission; and,
(4) The licensee shall permit authorized games of chance to be
played only during those hours established and approved by the
commission.
(d) Management service contracts. --
(1) Approval. -- A gaming facility may not enter into any
management service contract that would permit any person other than
the licensee to act as the commission's agent in operating games of
chance unless the management service contract: (A) Is with a
person licensed under this article to provide management services;
(B) is in writing; and (C) the contract has been approved by the
commission.
(2) Material change. -- A licensed gaming facility shall
submit any material change in a management service contract
previously approved by the commission to the commission for its
approval or rejection before the material change may take effect.
(3) Prohibition on assignment or transfer. -- A management
services contract may not be assigned or transferred to a third
party.
(4) Other commission approvals and licenses. -- The duties and
responsibility of a management services provider under a management
services contract may not be assigned, delegated, subcontracted or
transferred to a third party to perform without the prior approval
of the commission. Third parties must be licensed under this
article before providing service. The commission shall license and require the display of West Virginia Lottery game logos on
appropriate game surfaces and other gaming items and locations as
the commission considers appropriate.
(d) (e) License application requirements. -- An applicant for
a license to operate a gaming facility shall:
(1) Submit an application to the commission on a form
prescribed by the commission, which form must include:
(A) Information concerning the applicant and of any
controlling person of the applicant sufficient to serve as a basis
for a thorough background check;
(B) Subject to the provisions of subsection (e) of this
section with respect to publicly traded corporation, the identity
of all stockholders or other persons having a financial interest in
either the applicant or any controlling person of the applicant and
the identity of each director or executive officer of the applicant
and of any controlling person of the applicant;
(C) The identity of the historic resort hotel at which the
gaming facility is to be located, including identification of the
county in which the historic resort hotel is located; and
(D) Any other information designated by the commission as
appropriate to assist it in determining whether a license should be
issued;
(2) Pay to the commission a nonrefundable application fee for
deposit into
the state gaming Community Based Service Fund in the
amount of
$25,000 $65,000;
(3) Pay to the commission an investigative fee for deposit in the state gaming fund in the amount of twenty thousand dollars.
(f) Privately-held corporations. -- In the event that an
applicant or any controlling person of an applicant is a privately-
held corporation, then the commission may not grant a license until
the commission determines that each person who has control of the
applicant also meets all of the qualifications the applicant must
meet to hold the license for which application is made. The
following persons are considered to have control of an applicant:
(1) Each person associated with a corporate applicant,
including any corporate holding company, parent company or
subsidiary company of the applicant, but not including a bank or
other licensed lending institution which holds a mortgage or other
lien acquired in the ordinary course of business, who has the
ability to control the activities of the corporate applicant or
elect a majority of the board of directors of that corporation;
(2) Each person associated with a noncorporate applicant who
directly or indirectly holds any beneficial or proprietary interest
in the applicant or who the commission determines to have the
ability to control the applicant; and
(3) Key personnel of an applicant, including any executive,
employee or agent, having the power to exercise significant
influence over decisions concerning any part of the applicant's
business operation.
(e) (g) Publicly traded corporations. -- In the event that an
applicant or any controlling person of
an applicant is a publicly
traded corporation, then information otherwise required to be furnished by an applicant with respect to stockholders, directors
and executive officers of the publicly traded corporation shall be
limited to information concerning only those executive officers of
the publicly
traced traded corporation whose ongoing and regular
responsibilities relate or are expected to relate directly to the
operation or oversight of the gaming facility. "Publicly traded
corporation" as used herein means any corporation or other legal
entity, except a natural person, which has one or more classes of
securities registered pursuant to section twelve of the Securities
Exchange Act of 1934, as amended (15 U.S.C. §78), or is an issues
subject to section fifteen-d of that act.
(f) (h) Gaming facility qualifications. -- An applicant for a
license to operate a gaming facility must demonstrate that the
license to operate a gaming facility must demonstrate that the
gaming facility will: (1) Be accessible to disabled individuals;
(2) not be located at the main entrance to the historic resort
hotel; (3) be licensed in accordance with all other applicable
federal, state and local laws; and (4) meet any other
qualifications specified by rules adopted by the commission.
(g)Investigative fee. -- The investigative fee paid by an
applicant at the time of submitting an application shall be applied
to the cost of any investigation relating to the applicant required
under this article.
(1) If the cost of the investigation is greater than twenty
thousand dollars, the investigative agency shall show cause for the
additional cost. The applicant shall pay the additional costs to the extent approved by the commission, but not to exceed a total
investigative fee of forty thousand dollars;
(2)If the cost of the investigation is less than the
aggregate investigative fee paid by an applicant, the commission
shall refund the difference.
(h) (i) Surety bond requirement. -- The licensed
operator of
a gaming facility shall execute a surety bond to be given to the
state to guarantee the licensee faithfully makes
the all payments
keeps books and records, makes reports and conducts gaming in the
licensee's gaming facility in accordance with the provisions of
this article and rules promulgated by the commission. The surety
bond shall be:
(1) In
the an amount
of five million dollars determined by the
commission to be adequate to protect the state against nonpayment
by the licensee of amounts due the state under this article;
(2) In a form approved by the commission; and
(3) With a surety approved by the commission
who is licensed
to write surety insurance in this state. The bond shall remain in
effect during the term of the license and may not be canceled by a
surety on less than thirty days' notice in writing to the
commission. The total and aggregate liability of the surety on the
bond is limited to the amount specified in the bond. The bond must
remain in effect during the term of the license, and may not be
canceled by a surety on less than thirty days notice in writing to
the commission. The total and aggregate liability of the surety on
the bond is limited to the amount specified in the bond.
(i) (j) Authorization of license. -- A license to operate a
gaming facility authorizes the licensee to engage in the business
of operating a gaming facility while the license is effective. A
license to operate a gaming facility is not transferable or
assignable and cannot be sold or pledged as collateral.
(j) (k) Audits. -- A licensed gaming facility operator must
submit to the commission an annual audit, by a certified public
accountant
who is, or whose firm is, licensed in the State of West
Virginia,
or by a nationally recognized accounting firm, of the
financial transactions and condition of the licensee's total
operations. The audit must be in accordance with generally
accepted auditing principles.
(k) (l) Annual license maintenance renewal fee. -- For the
second year that it is licensed, the licensed gaming facility
operator must pay to the commission
an annual a license
maintenance
renewal fee of
five thousand dollars $250,000. For the third year
that it is licensed, the licensed gaming facility must pay to the
commission a license renewal fee of $500,000. For every year after
the third year that it is licensed, the licensed gaming facility
must pay to the commission a license renewal fee that is calculated
by determining the annual average gross receipts of the West
Virginia pari-mutuel racetracks with table games licenses for the
last full fiscal year of adjusted gross receipts available, and
dividing that number into the licensed gaming facility operator's
adjusted gross receipts for the same full fiscal year of adjusted
gross receipts to obtain a percentage, and by multiplying the resulting percentage by $2,500,000: Provided, That the amount
required to be paid by the licensed gaming facility shall be not
less than $500,000, nor more than $2,500,000.
(l) (m) The licensed gaming facility
operator shall provide to
the commission, at no cost to the commission, suitable office space
at the gaming facility to perform the duties required of it by the
provisions of this article.
§29-25-11. License to supply gaming facility.
(a)
Licenses. -- The commission may issue a license to each
applicant for a license to supply a gaming facility with gaming
devices, gaming supplies or services who meets the requirements of
this section.
(b)
License qualifications. -- To qualify for a license,
applicant shall meet the requirements of this section. Each
applicant who is an individual who is a controlling person of an
applicant that is not an individual must be of good moral character
and reputation, and must have the necessary experience and
financial ability to successfully carry out the functions of a
gaming facility supplier. The commission may adopt rules
establishing additional requirements for a gaming facility
supplier.
(c)
Supplier specification. -- An applicant for a license to
supply gaming devices, equipment and supplies to a gaming facility
must demonstrate that the gaming devices, equipment and supplies
that the applicant plans to sell or lease to the licensed operator of the gaming facility, conform or will conform to standards
established by rules of the commission and applicable state law.
(d)
License application requirements. -- An applicant for a
license shall:
(1) Submit an application to the commission on the form that
the commission requires
including adequate information to serve as
a basis for a thorough background check;
(2) Submit fingerprints for a national criminal records check
by the Criminal Identification Bureau of the West Virginia State
Police and the Federal Bureau of Investigation. The fingerprints
shall be furnished by all persons required to be named in the
application and shall be accompanied by a signed authorization for
the release of information by the Criminal Investigation Bureau and
the Federal Bureau of Investigation. The commission may require
any applicant seeking the renewal of a license or permit to furnish
fingerprints for a national criminal records check by the Criminal
Identification Bureau of the West Virginia State Police and the
Federal Bureau of Investigation; and
(2) (3) Pay to the commission a nonrefundable application fee
for deposit into the state gaming fund in the amount of
$5,000 $100
to be retained by the commission as reimbursement for the licensing
process.
(3) Pay to the commission an investigative fee for deposit
into the state gaming fund in the amount of ten thousand dollars,
or a lesser amount as the commission upon application may
conditionally approve in a particular case.
(e)Investigative fee. -- the investigative fee paid by an
applicant for a license to supply a gaming facility must be applied
to the cost of any investigation of the applicant required under
this article.
(1) If the costs of the investigation of an applicant are
greater than ten thousand dollars, or the lesser investigative fee
as may have been conditionally approved by the commission, the
investigative agency must show cause for the additional cost. If
the commission approves, the applicant shall pay the additional
costs as required by the commission, but not to exceed a total
investigative fee of fifty thousand dollars.
(2) If the costs of the investigation of an application are
less than the aggregate investigative fee paid to the commission,
the commission shall refund the difference.
(f) (e) Authorization of licensee. -- A license to supply a
gaming facility authorizes the licensee to engage in the business
of selling gaming devices and supplies to a gaming facility while
the license is effective.
(g) (h) Inventory. -- A licensed gaming facility supplier
shall submit to the commission a list of all equipment, gaming
devices and supplies sold or delivered to a gaming facility in
this state when required by the commission.
(h) (i) Annual license maintenance renewal fee.-- A licensed
gaming facility supplier shall pay to the commission an annual
license
maintenance renewal fee of
$5,000 $100.
§29-25-12. License to be employed by operator of gaming facility.
(a)
Licenses. -- The commission shall issue a license to each
applicant for a license to be employed in the operation of a gaming
facility who meets the requirements of this section.
(b)
License qualifications. -- To qualify for a license to be
employed in a gaming facility, the applicant shall be an individual
of good moral character and reputation and have been offered
employment by the gaming facility contingent upon licensure
pursuant to the provisions of this section. The commission by
rule, may specify additional requirements to be met by applicants
based on the specific job classification in which the applicant is
to be employed.
(c)
License application requirements. -- An applicant for a
license to be employed in the operation of a gaming facility shall:
(1) Submit an application to the commission on the form that
the commission requires, including adequate information to serve as
a basis for a thorough background check;
(2) Submit fingerprints for a national criminal records check
by the Criminal Identification Bureau of the West Virginia State
Police and the Federal Bureau of Investigation. The fingerprints
shall be furnished by all persons required to be named in the
application and shall be accompanied by a signed authorization for
the release of information by the Criminal Investigation Bureau and
the Federal Bureau of Investigation. The commission may require
any applicant seeking the renewal of a license or permit to furnish
fingerprints for a national criminal records check by the Criminal
Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation; and
(2) (3) Pay to the commission a nonrefundable
investigative
application fee
for deposit into the state gaming fund in the
amount of
three hundred dollars $100 to be retained by the
commission as reimbursement for the licensing process. This which
fee may be paid on behalf of the applicant by the employer.
(3)Pay to the commission a nonrefundable investigative fee
for deposit into the state gaming fund in an amount to be fixed by
the commission by rule, which fee may be paid on behalf of the
applicant by the employer.
(d)
Authorization of licensee. -- A license to be employed by
a gaming facility authorizes the licensee to be so employed in the
capacity designated by the commission with respect to the license
while the license is effective.
(e)
Annual license maintenance renewal fee. -- Each licensed
employee shall pay to the commission an annual license
maintenance
renewal fee set by the commission, which
maintenance renewal fee
may vary based on the capacity designated with respect to the
licensee but in no event to exceed
three hundred dollars $100.
The fee may be paid on behalf of the licensed employee by the
employer.
§29-25-13. False statements on applications; other license
requirements and prohibitions.
(a) Any person who knowingly makes a false statement on an
application is guilty of a misdemeanor and, upon conviction thereof, shall be fined not
less than one hundred nor more than
$500 $1,000, or confined in the county or regional jail and
committed to a state correctional facility for not less more than
six months
, or both fined and confined except that in the case of
a person other than a natural person, the amount of the fine
imposed may not be more than $25,000.
(b) The commission may not grant a license pursuant to the
provisions of this article if there is substantial evidence that
the applicant:
(1) Has knowingly made a false statement of a material fact to
the commission;
(2) Has been suspended from operating a gambling game, gaming
device or gambling operation in another jurisdiction by a board or
other governmental authority of that jurisdiction having
responsibility for the regulation of gambling or gaming activities;
(3) Has been convicted of a felony, an offense of moral
turpitude, a gambling offense, a theft or fraud offense, or has
otherwise demonstrated, either by a police record or other
satisfactory evidence, a lack of respect for law and order;
(4) Has failed to meet any monetary obligation in connection
with a gaming facility or any other form of gaming; or
(5) In the case of an applicant for a license to operate a
gaming facility or to supply a gaming facility;
(A) Has not demonstrated financial responsibility sufficient
to meet adequately the requirements of the enterprise proposed;
(B) Is not the true owner of the enterprise or is not the sole owner and has not disclosed the existence or identity of other
persons who have an ownership interest in such enterprise; or
(C) Is a corporation and five percent or more of the stock of
the corporation is subject to a contract or option to purchase at
any time during the period for which the license is issued unless
the contract or option was disclosed to and approved by the
commission.
(c) In addition to any other grounds specified in this
article, and subject to the hearing provisions of section seventeen
of this article, in the case of a license to operate a gaming
facility the commission may deny a license to any applicant,
reprimand any licensee, or suspend or revoke a license if the
applicant or licensee or any controlling person of the applicant or
licensee knowingly employs an individual in a senior management
position who has been convicted of a felony under the laws of this
state, another state, a territory of the United States, or the
United States or employs any individual in a senior management
position who has had a license relating to the operation of a
gaming facility revoked by this state or any other state.
(d) Character references may be required of persons licensed,
but the character referenced may not be obtained from persons in
the same or similar occupations or professions in other states.
§29-25-16. License denial, revocation and reprimand.
(a) The commission may deny a license to any applicant,
reprimand any licensee, or suspend or revoke a license if the
applicant or licensee, or any controlling person of the applicant or license:
(1) Fraudulently or deceptively obtains or attempts to obtain
a license for the applicant or licensee or for another;
(2) Fraudulently or deceptively uses a license;
or
(3) Is convicted of a felony under the laws of this state,
another state, a territory of the United States or the United
States;
(4) Is convicted of a misdemeanor under the laws of this
state, another state, the United States or a territory of the
United States for gambling or a gambling related activity; or
(5) Is not complying with this Act, the rules, or the minimum
internal control standards promulgated by the commission or the
gaming facility.
(b) Instead of or in addition to reprimanding a licensee or
suspending or revoking a license, the commission may impose a civil
penalty under section twenty-seven of this article.
§29-25-17. Hearing procedures.
(a) Right to a hearing. -- Except as otherwise provided by
law, before the commission takes any action involving a licensee
under the provisions of this article, it must give the persons
against whom the action is contemplated an opportunity for a
hearing before the commission.
(b) Notice of hearing and right to counsel. -- The commission
shall give notice and hold the hearing in accordance with
state
law, article five, chapter twenty-nine-a of this code. The notice
must be given to the person by certified mail to the last known address of the person at least thirty days before the hearing. The
person may be represented at the hearing by counsel.
(c) Failure to comply with subpoena. -- If a person fails to
comply with a subpoena issued under this section, on petition of
the commission, the circuit court may compel obedience to the
subpoena. If after due notice the person against whom the action
is contemplated fails or refuses to appear, the commission may hear
and determine the matter.
(d) Appeal. -- Any person aggrieved by a final decision of the
commission in a contested case may file a
petition for appeal in
the circuit court of Kanawha County within thirty days after the
person received notice of the final order or decision, as provided
in section four, article five, as defined in chapter twenty-nine-a
of this code.
may appeal as provided for in that chapter
§29-25-18. Inspection and seizure.
As a condition of licensure
, to inspect or investigate for
criminal violations of this and notwithstanding the separate
licensure of the facility as a private club pursuant to article
or
violations of the rule promulgated by the commission, the
commission's seven, chapter sixty of this code, any licensee must
consent to any search without a warrant by agents
of the commission
or of the State Police designated by the commission of the
licensee's person, personal property and effects, and premises
which are located in the gaming facility or adjacent facilities
under the control of the licensee, to inspect or investigate for
criminal violations of this article or violations of rules adopted by the commission. and the West Virginia State Police may each,
without notice and without warrant:
(1) Inspect and examine all premises of the gaming facility
with authorized games of chance, gaming devices, the premises where
gaming equipment is manufactured, sold, distributed or serviced or
any premises in which any records of the activities are prepared or
maintained;
(2) Inspect any gaming equipment in, about, upon or around the
premises of a gaming facility with authorized games of chance;
(3) Seize summarily and remove from the premises and impound
any gaming equipment for the purposes of examination, inspection or
testing;
(4) Inspect, examine and audit all books, records, and
documents pertaining to a gaming facility licensee's operation;
(5) Summarily seize, impound or assume physical control of any
book, record, ledger, authorize game of chance, gaming equipment or
device, cash box and its contents, counting room or its equipment
or authorized game of chance operations; and
(6) Inspect the person, and the person's personal effects
present on the grounds of a licensed gaming facility with
authorized games of chance, of any holder of a license issued
pursuant to this article, while that person is present on the
grounds of a licensed gaming facility with authorized games of
chance.
§29-25-19. Consent to presence of law-enforcement officers;
wagering limits; operations and services; posting of betting limits.
(a)
Consent to presence of law-enforcement officers. -- Any
individual entering a gaming facility must be advised by the
posting of a notice or other suitable means of the possible
presence of state, county or municipal law-enforcement officers,
and by entering the gaming facility impliedly consents to the
presence of the law-enforcement officers.
(b)
Setting of wagering limits Commission discretion in gaming
operations. --The operator of a gaming facility may set minimum
wagers for any authorized game of chance, except for video lottery.
Video lottery terminals operated at the gaming facility may not
allow more than two dollars to be wagered on a single game.
(1) Subject to the approval of the commission, the gaming
facility licensee shall, with respect to video lottery and
authorized games of chance, establish the following:
(A) Maximum and minimum wagers;
(B) Advertising and promotional activities;
(C) Hours of operation;
(D) The days during which games may be played; and
(E) Currency denominations accepted by any mechanical or
electronic bill acceptors.
(2) The commission may consider multiple factors, including,
but not limited to, industry standards, outside competition, and
any other factor as determined by the commission to be relevant in
its decision to approve the gaming facility's determination of
those items listed in subdivision (1), subsection (b) of this section.
(c) Setting of operations. -- Notwithstanding anything to the
contrary contained elsewhere in this chapter, the commission may
establish the following parameters for commission regulated lottery
games of any kind which is played at a licensed gaming facility:
(1) Minimum and maximum payout percentages;
(2) Any probability limits of obtaining the maximum payout for
a particular play; and
(3) Limitations on the types and amounts of financial
transactions, including extension of credit to a patron, which a
gaming facility can enter into with its patrons.
(d) Posting of betting limits. -- A gaming facility shall
conspicuously post a sign at each authorized game of chance
indicating the permissible minimum and maximum wagers pertaining at
that table. A gaming facility licensee may not require any wager
to be greater than the stated minimum or less than the state
maximum. However, any wager actually made by a patron and not
rejected by a gaming facility licensee prior to the commencement of
play shall be treated as a valid wager.
§29-25-20. Accounting and reporting of gross terminal income;
distribution of net terminal income.
The licensed gaming facility shall submit
fifty-three
thirty-six percent of the gross terminal income from video lottery
games at the licensed gaming facility to the commission through
electronic funds transfer
to be deposited into the Historic Resort Hotel Fund created in twenty-two of this article. The licensed
gaming facility shall also submit seventeen percent of the gross
terminal income from video lottery games at the licensed gaming
facility to the commission through electronic funds transfer to be
deposited into the Human Resource Benefit Fund created in section
twenty-two-a of this article. Each of these submissions shall be
made to the commission weekly. The gaming licensee shall furnish
to the commission all information and bank authorizations required
to facilitate the timely transfer of moneys to the commission. The
gaming licensee shall provide the commission thirty days' advance
notice of any proposed account changes in order to assure the
uninterrupted electronic transfer of funds.
§29-25-21. Taxes on games other than video lottery games.
(a)
Imposition and rate of limited gaming profits tax. --
There is hereby levied and shall be collected a privilege tax
against a gaming license in an amount to be determined by the
application of the rate against adjusted gross receipts of the
licensed gaming facility. The rate of tax is
thirty-seven thirty-
five percent.
Of that thirty-five percent, thirty percent shall be
directly deposited by the commission into the Historic Resort Hotel
Fund created in section twenty-two of this article, and the
remaining five percent shall be directly deposited by the
commission into the Human Resource Benefit Fund created in section
twenty-two-a of this article. For purposes of calculating the
amount of tax due under this section, the licensee shall use the
accrual method of accounting. This tax is in addition to all other taxes and fees imposed:
Provided, That the consumers sales and
services tax imposed pursuant to article fifteen, chapter eleven of
this code may not apply to the proceeds from any wagering with
respect to an authorized game of chance pursuant to this article.
(b)
Computation and payment of tax. --The taxes levied under
the provisions of this section are due and payable
to the
commission in
monthly weekly installments on or before the
twenty-
first day Wednesday of
the month each week. following the month in
which the tax is accrued The taxpayer shall, on or before the
twenty-first day Wednesday of each
month week make out and
mail
submit by electronic communication to the commission a return for
the preceding
month week, in the form prescribed by the commission,
showing: (1) The total gross receipts from the gaming facility for
that month and the adjusted gross receipts; (2) the amount of tax
for which the taxpayer is liable; and (3) any further information
necessary in the computation and collection of the tax which the
Tax Commissioner or the commission may require. Payment of the
amount of tax due must accompany the return. All payments made
pursuant to this section shall be deposited in
the state gaming
fund accordance with sections twenty-two and twenty-two-a of this
chapter. Payments due to the commission under this section and
payments due to the commission under section twenty of this chapter
shall be sent simultaneously.
(c) Negative Adjusted gross receipts. -- When adjusted gross
receipts for a week is a negative number because the winnings paid
to patrons wagering on the gaming facility's authorized games of chance exceeds the gaming facility's gross receipts from the
purchase of table game tokens, chips or electronic media by
patrons, the commission shall allow the licensee to, pursuant to
rules of the commission, carry over the negative amount of adjusted
gross receipts to returns filed for subsequent weeks. The negative
amount of adjusted gross receipts may not be carried back to an
earlier week and the commission is not required to refund any tax
received by the commission, except when the licensee surrenders its
license to act as agent of the commission in operating authorized
games of chance under this article and the licensee's last return
filed under this section shows negative adjusted gross receipts.
In that case, the commission shall multiply the amount of negative
adjusted gross receipts by the applicable rate of tax and pay the
amount to the licensee, in accordance with rules of the commission.
(c) (d) Prohibition on credits. -- Notwithstanding any other
provision of this code to the contrary, no credits may be allowed
against any tax imposed on any taxpayer by this code for an
investment in gaming devices and supplies, for an investment in
real property which would be directly utilized for the operation of
a gaming facility or for any jobs created at a gaming facility.
Notwithstanding any other provision of this code to the contrary,
the tax imposed by this section may not be added to federal
taxable income in determining West Virginia taxable income of a
taxpayer for purposed of article twenty-four, chapter eleven of
this code.
(e) Tax imposed by this section is in lieu of other taxes. --
(1) With the exception of the ad valorem property tax
collected under chapter eleven-a of this code, the tax imposed by
this section is in lieu of all other state taxes and fees imposed
on the operation of, or the proceeds from operation of authorized
games of chance, except as otherwise provided in this section. The
consumers sales and services tax imposed pursuant to article
fifteen, chapter eleven of this code, shall not apply to the
licensee's gross receipts from any wagering on authorized games of
chance pursuant to this article or to the licensee's purchasing of
gaming equipment, supplies or services directly used in operation
of the games of chance authorized by this article. These purchases
are also exempt from the use tax imposed by article fifteen-a,
chapter eleven of this code.
(2) With the exception of the ad valorem property tax
collected under chapter eleven-a of this code, the tax imposed by
this section is in lieu of all local taxes and fees levied on or
imposed with respect to the privilege of offering authorized games
of chance to the public, including, but not limited to, the
municipal business and occupation taxes and amusement taxes
authorized by article thirteen, chapter eight of this code, and the
municipal sales and service tax and use taxes authorized by article
thirteen-c, chapter eight of this code.
§29-25-22.
Historic resort hotel fund; allocation of adjusted
gross receipts.
(a) There is hereby created a special fund in the State
Treasury which shall be designated and known as the "
state gaming Historic Resort Hotel Fund."
All revenues received from licenses
and applicants under this article, all Thirty-six percent of the
gross terminal income received by the commission under section
twenty of this article and
all tax revenues from the tax imposed
thirty percent of the adjusted gross receipts received by the
commission under section twenty-one of this article shall be
deposited with the State Treasurer and placed in
the state gaming
Historic Resort Hotel Fund. The fund shall be an interest bearing
account with interest to be credited to and deposited in
the state
gaming Historic Resort Hotel Fund.
(b) All expenses of the commission shall be paid from
the
state gaming Historic Resort Hotel Fund, including reimbursement of
the State Police for activities performed at the request of the
commission in connection with background investigations or
enforcement activities pursuant to this article. At no time may
the commission's expenses under this article exceed fifteen percent
of the total of the annual revenue received from the licensee under
this article, including all license fees, taxes or other amounts
required to be deposited in
the state gaming Historic Resort Hotel
Fund.
(c) The balance of the
state gaming Historic Resort Hotel Fund
shall
become net income and shall be divided as follows:
(1)
Eighty-nine Sixty-four percent
of the state gaming
Historic Resort Hotel Fund net income shall be paid into the
General Revenue Fund to be appropriated by the Legislature;
(2) Nineteen percent of the Historic Resort Hotel Fund net income shall be paid into the debt reduction fund established in
section twenty-seven, article twenty-two-c of this chapter to be
appropriated by the Legislature;
(2) (3) The Tourism Promotion Fund established in section
nine
twelve, article
one two, chapter five-b of this code shall receive
three percent
of the
state
gaming Historic Resort Hotel Fund net
income;
(3) (4) The county where the gaming facility is located shall
receive four percent of the state gaming Historic Resort Hotel Fund
net income;
(4) (5) The municipality where the gaming facility is located
or the municipality closest to the gaming facility by paved road
access as of the effective date of the reenactment of this section
by the 2009 Regular Session of the Legislature shall receive two
and one-half percent of the state gaming Historic Resort Hotel Fund
net income; and
(5) (6) The municipalities within the county where the gaming
facility is located, except for the municipality receiving funds
under subdivision (4) (5) of this subsection, shall receive equal
shares of two and one-half percent of the state gaming Historic
Resort Hotel Fund net income;
(7) Each county commission in the state that is not eligible
to receive a distribution under subdivision four of this
subsection, shall receive equal shares of two and one-half percent
of the Historic Resort Hotel Fund net income: Provided, That funds
transferred to county commission under this subdivision shall be used only to pay regional jail expenses and the costs of
infrastructure improvements and other capital improvements; and
(8) Each governing body of each municipality in the state that
is not eligible to receive a distribution under subdivisions five
and six of this subsection, shall receive equal shares of two and
one-half percent of the Historic Resort Hotel Fund net income:
Provided, That funds transferred to municipalities under this
subdivision shall be used only to pay for debt reduction in
municipal police and fire pension funds and the costs of
infrastructure improvements and other capital improvements.
(d) Notwithstanding any provision of this article to the
contrary, all limited gaming facility license fees and license
renewal fees received by the commission pursuant to section nine of
this article shall be deposited into the Community Based Service
Fund which was created in subdivision two, subsection (a), section
twenty-seven, article twenty-two-c, chapter twenty-nine of this
code.
(e) With the exception of the license fees and license renewal
fees received by the commission pursuant to section nine of this
article, all revenues received from licensees and license
applicants under this article shall be retained by the commission
as reimbursement for the licensing process.
§29-25-22a. Human Resource Benefit Fund.
(a) There is hereby created a special fund in the State
Treasury which shall be designated and known as the "Human Resource
Benefit Fund." Seventeen percent of the gross terminal income received by the commission under section twenty of this article and
five percent of the adjusted gross receipts received by the
commission under section twenty-one of this article shall be
deposited with the State Treasurer and placed in the Human Resource
Benefit Fund. The fund shall be an interest bearing account with
interest to be credited to and deposited in the Human Resource
Benefit Fund.
(b) For each dollar expended by the historic resort hotel
licensee for fringe benefits for the employees of the historic
resort hotel licensee, the historic resort hotel licensee shall
receive one dollar in recoupment from the Human Resource Benefit
Fund: Provided, That the historic resort hotel licensee is not
entitled to recoupment for money spent on fringe benefits beyond
the amount of money available to be expended from the Human
Resource Benefit Fund at the time the request for recoupment is
made by the historic resort hotel licensee.
(c) The commission shall have full rights and powers to audit
the spending of money from the Human Resource Benefit Fund to
ensure that the money is being used in the manner prescribed under
this section. The commission shall have the power and authority to
audit as frequently as it sees fit, so long as it conducts at least
two audits each fiscal year.
(d) There is herein created the "Human Resource Benefit
Advisory Board", which shall meet every six months to verify the
commission's audit.
(1) The board shall consist of five members, all residents and citizens of the State of West Virginia:
(A) One member shall be an employee representative elected by
the majority of the employees of the historic resort hotel
licensee;
(B) One member shall be a representative of the historic
resort hotel licensee; and
(C) Three members shall be employees of the commission.
(2) The members shall be appointed or elected by the entity or
persons that they represent. Establishment of terms for members
shall be determined by the entity or persons that they represent,
if the entity or persons choose to set terms.
(3) A majority of members constitutes a quorum for the
transaction of business.
(4) The board shall meet every six months at the headquarters
of the commission. Upon its own motion or upon the request of the
commission, it may hold meetings in addition to the required
meetings. The commission shall pay the travel expenses of members
of the board who are not employed by the commission.
(5) All meetings of the board shall be open to the public.
(6) The board shall operate in an advisory capacity. Its
functions shall include, but are not limited to, reviewing and
verifying financial audits of the Human Resource Benefit Fund
conducted by the commission and its employees, and reviewing source
documents associated with disbursements from the Human Resource
Benefit Fund.
(7) Within thirty days of any board meeting, the board shall report to the commission its findings and any recommendations it
may have. The report to the commission shall be made at a
commission meeting that is open to the public.
(e) In the event that an audit conducted by the commission, or
suggested changes to the audit submitted by the board and adopted
by the commission, reveals that the historic resort hotel licensee
has acted improperly or negligently in its claim for money from the
Human Resource Benefit Fund, the commission may impose a civil
penalty against the historic resort hotel licensee of up to one
hundred percent of the improperly claimed amount. Any civil
penalty imposed on the historic resort hotel licensee by the
commission under this subsection shall be deposited by the
commission into the Historic Resort Hotel Fund.
§29-25-23. Prohibition on unauthorized wagering; complimentary
service, gift, cash or other item.
(a) A gaming licensee may not permit any form of wagering
except as authorized under this article, or articles twenty-two,
twenty-two-a, or twenty-two-c of this chapter.
(b) A gaming licensee may receive wagers only from an
individual present in a licensed gaming facility.
(c) All gaming facility operations must utilize a cashless
wagering system whereby all players' money is converted to tokens,
paper vouchers, electronic cards or chips at the request of the
wagerer which can only be used for wagering in a licensed gaming
facility, and wagering may not be conducted with money or other
negotiable currency:
(1) Wagering on authorized games of chance may not be
conducted with money or other negotiable currency or with tokens,
electronic cards or other electronic media or chips not issued by
the gaming facility where the games of chance will be played.
(2) At the request of the player, the licensee shall convert
a player's tokens, electronic cards or other electronic media or
chips back to money.
(3) The licensee may not charge a fee for converting a
player's money to an acceptable media for play a game of chance or
charge a fee for converting the acceptable media for wagering a
game of chance back to money.
(d) The gaming licensee is prohibited from offering any
complimentary service, gift, cash or other item of value to any
person unless: property or service, other than incidental food and
beverages, to any person as an inducement to participate in a game
of chance. This prohibition includes the offering of complimentary
or discounted rooms in exchange for a guest participating in any
game of chance at the gaming facility.
(1) The complimentary consists of room, food, beverage or
entertainment expenses provided directly to the patron and his or
her guests by the gaming facility licensee or indirectly to the
patron and his or her guests on behalf of the licensee by a third
party;
(2) The complimentary consists of documented transportation
expenses provided directly to the patron and his or her guests on
behalf of a gaming facility licensee by a third party: Provided, That the licensee complies with the rules promulgated by the
commission to ensure that a patron's and his or her guests'
documented transportation expenses are paid for or reimbursed only
once; or
(3) The complimentary consists of coins, tokens, cash or other
complimentary items or services provided through any complimentary
distribution program, the terms of which shall be filed with the
commission upon implementation of the program or maintained
pursuant to commission rule. Any change in the terms of a
complimentary program shall be filed with the commission upon
implementation of the change.
(e) Notwithstanding any provision of subsection (d) of this
section to the contrary, a gaming facility licensee may offer and
provide complimentary cash or noncash gifts that are not otherwise
included in that subsection to any person: Provided, That any
complimentary cash or noncash gifts in excess of an amount per trip
to be set by interpretive rule of the commission, are supported by
documentation regarding the reason the gift was provided to the
patron and his or her guests, including where applicable a patron's
player rating. The documentation shall be maintained by a gaming
facility licensee in accordance with commission rules. For
purposes of this subsection, all gifts presented to a patron and a
patron's guests directly by the gaming facility licensee or
indirectly on behalf of the licensee by a third party within any
five-day period shall be considered to have been made during a
single trip.
§29-25-24. Individual gaming restrictions.
(a) An individual may not enter a designated gaming facility
area or remain in a designated gaming facility to participate in
authorized games of chance area if the individual:
(1) Is not a;
(A) A registered overnight guest at the historic resort hotel
on whose premises the gaming facility is located;
(B) A person who is not a registered overnight guest, but is
a registered participant at a convention or event being held at the
historic resort hotel: Provided, That the historic resort hotel
has met ninety percent of its available room capacity; or
(C) Member of a home owner or facility association that
entitles members to substantial privileges at the historic resort
hotel on whose premises the gaming facility is located or an
overnight guest of such a member: Provided, That the association
was in existence as of April 1, 2009;
(2) Is under the age of twenty-one years;
(3) Is visibly intoxicated;
(4) Is determined by the gaming facility operator or the
commission to be unruly, disruptive or otherwise interfering with
operation of the gaming facility; or to be likely to commit, or to
attempt to commit a violation of this article; or
(5) Has been barred by the commission from entering a gaming
facility.
(b) Notwithstanding any provisions of this code to the
contrary, no employee of the commission or employee of the historic resort hotel or any member of his or her immediate household may
wager at the gaming facility.
§29-25-25. Offenses and penalties.
(a) A gaming licensee is guilty of unlawful operation of a
game of chance when:
(1) The licensee operates a game of chance or places a video
lottery game or video lottery terminal in any location other than
a gaming facility that is not a designated gaming area approved by
the commission;
(2) The licensee acts, or employs another person to act, as if
he or she is not an agent or employee of the licensee in order a
shill or decoy to encourage participation in a game of chance in a
gaming facility;
(3) The licensee knowingly permits an individual under the age
of twenty-one years of age to enter or remain in a gaming facility
for the purpose of making a wager designated gaming area or to play
video lottery terminals or authorized games of chance at a licensed
gaming facility; or
(4) The licensee exchanges tokens, chips or other forms of
credit to be used for wagering in a gaming facility for anything of
value except in exchange for money or credits to a player's
account;
(5) The licensee operates a game of chance or places a video
lottery game or video lottery terminal into play without authority
of the commission to do so;
(6) The licensee knowingly conducts, carries on, operates or exposes for play or allows to be conducted, carried on, operated or
exposed for play any game of chance, video lottery game, video
lottery terminal or other device, equipment or material that has in
any manner been tampered with or placed in a condition or operated
in a manner, the result of which is designed to deceive the public;
or
(7) The licensee employs an individual in a position or to
perform duties, for which a license is required by this article or
rules of the commission and the employee does not have a license
issued under the provisions of this article or the licensee
continues to employ the individual in a position or to perform
duties, for which a license is required by this article or rules of
the commission, after the employee's license expired, was revoked
by the commission or not renewed by the commission.
(b) A person is guilty of a misdemeanor when:
(1) The person operates, carries on or exposes for play an
authorized game of chance prior to obtaining a license or after the
person's license has expired and prior to actual renewal of the
license or before the authorized game of chance and the licensee's
rules for play for the game are approved or modified and approved
by the commission;
(2) The person works or is employed in a position requiring a
license under the provisions of this article without having the
license required by this article;
(3) 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;
(4) 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 random
selection of characteristics or the normal chance of the video
lottery game.
(b) (c) A person is guilty of felonious wager a felony when:
(1) The person offers, promises or gives anything of value or
benefit to a person who is connected has an ownership or financial
interest in, is employed by or has a service contract with, a
gaming facility or to that person's spouse or any dependent child
or dependent parent, pursuant to an agreement or arrangement, in
fact or implied from the circumstances, or with intent that the
promise or thing of value or benefit will influence the actions of
the person to whom the offer, promise, or gift was made in order to
affect or attempt to affect the outcome of an authorized game of
chance, or to influence official action of the commission. For the
purposes of this subdivision and subdivision (2) of this
subsection, the term "person who is connected with a gaming
facility" includes, but is not limited to, a person licensed under
this article as well as an officer or employee of a licensee;
(2) The person solicits or knowingly accepts or receives a
promise of anything of value or benefit while the person is
connected with a gaming facility, pursuant to an understanding or
arrangement or with the intent that the promise or thing of value
or benefit will influence the actions of the person to affect or
attempt to affect the outcome of an authorized game of chance, or
to influence official action of the commission;
(3) The person uses or possesses on property owned by the
licensed gaming facility or on property contiguous to the gaming
facility, with the intent to use, an electronic, electrical or
mechanical a device that is designed, constructed or programmed to
assist the user or another person:
(A) In projecting the outcome of an authorized game of chance;
(B) In keeping track of cards played dealt or in play;
(C) In analyzing the probability of the occurrence of an event
relating to an authorized game of chance; or
(D) In analyzing the strategy for playing or betting to be
used in an authorized game of chance, except as permitted in
writing by the commission; or
(E) In obtaining an advantage at playing any authorized game
of chance at a licensed gaming facility authorized under this
article to operate authorized games of chance.
(4) The person cheats at an authorized game of chance in a
gaming facility;
(5) The person manufacturers, sells, or distributed any cards,
chips, dice, game or device which is intended to be used to violate any provision of this article or the table gaming laws of any other
state;
(6) The person instructs a person in cheating or in the use of
a device for that purpose with the knowledge or intent that the
information or use conveyed may be employed to violate any
provision of the article;
(7) The person places a bet after acquiring knowledge, not
available to all players, of the outcome of the game of chance
which is the subject of the bet, or aids a person in acquiring the
knowledge for the purpose of placing a bet contingent on that
outcome;
(8) The person claims, collects, takes or attempts to claim,
collect, or take, money or anything of value into or from a gaming
facility, with intent to defraud, without having made a wager
contingent on winning a game of chance, or claims, collects, or
takes an amount of money or thing of value or greater value than
the amount won;
(9) The person knowingly uses chips, electronic media or
tokens that are counterfeit chips or tokens to place a wager in a
gaming facility;
(10) The person knowingly uses any medium other than chips,
tokens or other methods of credit approved by the commission to
place a wager in a gaming facility;
(11) The person, not a gaming licensee or employee or agent of
a gaming licensee gaming facility licensed under this article
acting in furtherance of the gaming licensee's interests, has in his or her possession on grounds owned by the gaming facility
licensed under this article or on grounds contiguous to the gaming
facility, any device, by whatever name called, intended to be used
to violate a provision of this article or a rule of the commission
implementing or explaining a provision of this article; or
(12) The person, not a gaming licensee or agent of a gaming
licensee acting in furtherance of the gaming licensee's interests,
has in his or her possession any key or device designed for the
purpose of opening, entering, or affecting the operation of an
authorized game of chance, drop box or an electronic or mechanical
device connected with or used in connection with an authorized
games of chance in a gaming facility or for removing coins, tokens,
chips or other contents therefrom.
(c) (d) Any person who violates the provisions of subsection
(a) or (b) of this section is guilty of a misdemeanor and, upon
conviction thereof, shall be fined not more than $1,000 or confined
in a county or regional jail for not more than and confined in jail
for not more than six months, except that in the case of a person
other than a natural person, the amount of the fine imposed may not
be more than $25,000.
(d) (e) Any person who violates the provisions of subsection
(b) (c) of this section is guilty or a felony and, upon conviction
thereof, shall be fined not less than $5,000 nor more than $10,000
and committed to the department of corrections of a definite a
state correctional facility for a term of imprisonment of not less
than one year nor more than five years.
(f) With regard to subdivision (3), subsection (c) of this
section, the gaming facility licensee shall post notice of this
prohibition and the penalties of this section in a manner
determined by the commission.
§29-25-26. Forfeiture of property.
(a) Anything of value, including all traceable proceeds
including, but not limited to, real and personal property, moneys
negotiable instruments, securities and conveyances, is subject to
forfeiture to the State of West Virginia if the item was used for
any of the following:
(1) As a bribe intended to affect the outcome of an authorized
game of chance in a gaming facility; or
(2) In exchange for or to facilitate a violation of this
article.
(b) The Legislature finds and declares that the seizure and
sale of items under the provisions of this section is not
contemplated to be a forfeiture as that term is used in Section 5,
Article XII of the Constitution of West Virginia, and, to the
extent that a seizure and sale may be found to be such a
forfeiture, the Legislature hereby finds and declares that the
proceeds from a seizure and sale under this article are not part of
net proceeds as it is contemplated by Section five, Article XII of
the Constitution of West Virginia.
(b) (c) Subsection (a) of this section does not apply if the
act or omission which would give rise to the forfeiture was
committed or omitted without knowledge or consent of the owner of the property to be forfeited.
§29-25-28. Specific provision for video lottery and slot machines
games.
The commission is authorized to implement and operate slot
machines and video lottery games at one gaming facility 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.
§29-25-29. Video lottery terminal requirements; application for
approval of a slot machine or video lottery
terminal; testing of video lottery terminals;
report of test results; modifications to previously
approved models; conformity to prototype; seizure
and destruction of terminals.
(a) Video lottery terminals registered with and approved by the
commission for use at the gaming facility 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.
(b) A manufacturer may not sell or lease a video lottery terminal for placement at the gaming facility unless the terminal has
been approved by the commission. Only manufacturers with licenses
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 gaming
facility 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 gaming
facility are jointly responsible for the assembly and installation of
all video lottery terminals and associated equipment. The
manufacturer and licensed gaming facility 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 the
gaming facility 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 the gaming facility, the
commission shall seize and destroy all of that licensed gaming facility's and manufacturer's noncomplying video lottery terminals
and shall suspend the license and permit of the licensed gaming
facility and manufacturer.
§29-25-30. Video lottery terminal hardware and software
requirements; hardware specifications; software
requirements for randomness testing; software
requirements for percentage payout; software
requirements for continuation of video lottery game
after malfunction; software requirements for play
transaction records.
(a) The commission may approve video lottery terminals and in
doing so shall take into account advancements in computer technology,
competition from nearby states and the preservation of jobs at the
historic resort hotel. In approving video lottery terminals licensed
for placement in this state the commission shall insure that the
terminals meet the following hardware specifications:
(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 bill or voucher acceptor or other means accurately and
efficiently to establish credits shall be installed on each video
lottery terminal. All acceptors must be approved by the commission
prior to use on any video lottery terminal in this state.
(6) Access to the interior of 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 deemed 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 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. All information required by this subdivision shall be displayed under glass or another transparent substance. No
stickers or other removable devices may 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 limit 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 pay out no less than
eighty percent and no more than ninety-nine percent of the amount
wagered. The theoretical payout percentage will be determined using
standard methods of probability theory.
(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.
§29-25-31. The specific video lottery duties required of the gaming
facility.
The gaming facility licensee shall:
(a) 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;
(b) 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;
(c) Permit no person to tamper with or interfere with the
operation of any video lottery terminal;
(d) Ensure that any telephone lines from the commission's
central control computer to the video lottery terminals located at
the licensed gaming facility are at all times connected and prevent
any person from tampering or interfering with the operation of the
telephone lines;
(e) Ensure that video lottery terminals are within the sight and
control of designated employees of the license gaming facility;
(f) Ensure that video lottery terminals are placed and remain
placed in the specific locations within the gaming facility that have
been approved by the commission. No video lottery terminal or
terminals at the gaming facility shall be relocated without the prior
approval of the commission;
(g) Monitor video lottery terminals to prevent access to or play
by persons who are under the age of twenty-one years or who are
visibly intoxicated;
(h) Maintain at all times sufficient change and cash in the
denominations accepted by the video lottery terminals;
(i) Provide no access by a player to an automated teller machine
(ATM) in the area of the gaming facility where video lottery games
are played;
(j) Pay for all credits won upon presentment of a valid winning
video lottery ticket;
(k) 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;
(l) Install, post and display prominently at locations within or
about the licensed gaming facility, signs, redemption information and
other promotional material as required by the commission; and
(m) Promptly notify the commission in writing of any breaks or
tears to any logic unit seals.
§29-25-32. Surcharge; Capital Reinvestment Fund.
(a) For all fiscal years beginning on or after July 1, 2009,
there shall be imposed a surcharge of ten percent against the share
of gross terminal income retained by the gaming facility as provided
by section twenty of this article.
(b) A Capital Reinvestment Fund is hereby created within the
lottery fund. The surcharge amount attributable to the gaming
facility shall be retained by the commission and deposited into a
separate capital reinvestment account for the gaming facility. For
each dollar expended by the gaming facility for capital improvements
at the gaming facility, of any amenity associated with the licensed
gaming facility's destination resort facility operations, or at
adjacent facilities owned by the licensee having a useful life of
seven or more years and placed in service after April 1, 2009, the
licensed gaming facility shall receive one dollar in recoupment
from its Capital Reinvestment Fund account: If a licensed gaming
facility'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 seven subsequent fiscal
years.
(c) Any moneys remaining in the gaming facility's Capital
Reinvestment Fund account at the end of any fiscal year shall be
deposited in the Historic Resort Hotel Fund.
§29-25-33. License to be a provider of management services.
(a) License. -- The commission may issue a license to a person
providing management services under a management services contract to a gaming facility when the commission determines that the person
meets the requirements of this section and any applicable rules of
the commission.
(b) License qualifications. -- Each applicant who is an
individual and each individual who controls and applicant, as
provided in subsection (f) section two of this article, shall be of
good moral character, honesty and integrity and shall have the
necessary experience and financial ability to successfully carry out
the functions of a management services provider. The commission may
adopt rules establishing additional requirements for an authorized
management services provider. The commission may accept licensing by
another jurisdiction, specifically determined by the commission to
have similar licensing requirements, as evidence the applicant meets
authorized management services provider licensing requirements.
(c) Management service provider specifications. -- An applicant
for a license to provide management services to a gaming facility
licensee shall demonstrate that the management services that the
applicant plans to offer to the gaming facility licensee conform or
will conform to standards established by rules of the commission and
applicable state law.
(d) License application requirements. -- An applicant for a
license to provide management services to a gaming facility licensee
shall:
(1) Submit an application to the commission in the form required
by the commission including adequate information to serve as a basis
for a thorough background check;
(2) Submit fingerprints for a national criminal records check by
the Criminal Identification Bureau of the West Virginia State Police
and the Federal Bureau of Investigation. The fingerprints shall be
furnished by all persons required to be named in the application and
shall be accompanied by a signed authorization for the release of
information by the Criminal Investigation Bureau and the Federal
Bureau of Investigation. The commission may require any applicant
seeking the renewal of a license or permit to furnish fingerprints
for a national criminal records check by the Criminal Identification
Bureau of the West Virginia State Police and the Federal Bureau of
Investigation; and
(3) Pay to the commission a nonrefundable application fee for
deposit into the Historic Resort Hotel Fund in the amount of $100 to
be retained by the commission as reimbursement for the licensing
process. This fee may be paid on behalf of the applicant by the
employer.
(e) Authorization. -- A license to provide management services
to a gaming facility licensee authorizes the licensee to provide
management service to a gaming facility while the licensee is active.
The commission may by rule establish the conditions which constitute
an emergency under which the commission may issue provisional
licenses pending completion of final action on an application.
(f) Fees, expiration date and renewal. -- A licensed provider of
management services shall pay to the commission an annual license fee
of $100 for an initial term beginning prior to the date of the
provider's first contract with a gaming facility licensee and continuing through the end of the twelfth month thereafter whenever
the licensee has paid the renewal fee and has continued to comply
with all applicable statutory and rule requirements. The commission
shall renew a license to provide management services to a gaming
facility annually thereafter. A gaming facility licensee may
continue to use the management services provided by the management
services provider while that provider was licensed, notwithstanding
the expiration of the provider's license, unless the commission finds
the services provided are not conforming to standards established by
rule of the commission and applicable state law.
§29-25-34. State ownership of games of chance.
All authorized games of chance by this article shall be West
Virginia lottery games owned by the State of West Virginia. A gaming
facility license granted to a historic resort hotel by the commission
pursuant to this article shall include the transfer by the commission
to the historic resort hotel limited license rights in and to the
commission's intellectual property ownership of the West Virginia
lottery games which includes granting licensees limited lawful
authority relating to the conduct of lottery table games for
consideration, within the terms and conditions established pursuant
to this article and any rules promulgated under this article.
§29-25-35. Preemption.
No local law or rule providing any penalty, disability,
restriction, regulation or prohibition for operating a historic
resort hotel with authorized games of change or supplying a licensed
gaming facility may be enacted, and the provisions of this article preempt all regulations, rules, ordinances and laws of any county or
municipality in conflict with this article.
§29-25-36. Exemption from federal law.
Pursuant to section 2 of chapter 1194, 64 Stat. 1134, 15 U.S.C.
§1172, approved January 2, 1951, the State of West Virginia, acting
by and through duly elected and qualified members of the Legislature,
does declare and proclaim that the state is exempt from chapter 1194,
64 Stat. 1134, 15 U.S.C. §1171 to §1178.
§29-25-37. Game rules of play; disputes.
(a) As an agent of the commission authorized to operate games of
chance, the gaming facility licensee shall have written rules of play
for each authorized game of chance it operates that are approved by
the commission before the game of chance is offered to the public.
Rules of play proposed by the gaming facility may be approved,
amended or rejected by the commission.
(b) All authorized games of chance shall be conducted according
to the specific rules of play approved by the commission. All wagers
and pay-offs of winning wagers shall be made according to those rules
of play, which shall establish any limitations necessary to assure
the vitality of games of chance operations.
(c) The gaming facility licensee shall make available in printed
form to any patron, upon request of the patron, the complete texts of
the rules of play of any authorized game of chance in operation at
the gaming facility, pay-offs of winning wagers and any other advice
to the player required by the commission.
(d) Patrons are considered to have agreed that the determination of whether the patron is a valid winner is subject to the game of
play rules and, in the case of any dispute, will be determined by the
commission. The determination by the commission shall be final and
binding upon all patrons and shall not be subject to further review
or appeal.
§29-25-38. Shipment of gambling devices.
All shipments of gambling devices, including video lottery
machines, to the licensed gaming facility in this state, the
registering, recording, and labeling of which have been completed by
the manufacturer or dealer thereof in accordance with Chapter 1194,
64 Stat. 1134, 15 U.S.C. §1171 to §1178, are legal shipments of
gambling devices into the State of West Virginia.
NOTE: The purpose of this bill is to update article twenty-five,
chapter twenty-nine of this code, in order to achieve conformity
between the operations of video lottery and authorized games of
chance at the historic resort hotel and the operations of video
lottery and table games at the pari-mutuel racetracks licensed under
section one, article twenty-two-a, chapter twenty-nine, et seq. and
section one, article twenty-two-c, chapter twenty-nine, et seq. The
bill also changes the distribution of net gaming receipts from gaming
at a historic resort hotel to be more parallel to the distribution
for licensed racetracks. The bill establishes a Human Resource
Benefit Fund to benefit all employees of the historic resort hotel
licensee. State revenues from both types of venues would come from
the application of identical percentages to the video lottery and
table game income.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.