Senate Bill No. 1

(By Senator Blatnik)

____________

[Introduced January 11, 1995; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
____________




A BILL to amend chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article twenty-four, relating to the economic development and vessel gaming regulation act; providing a short title, legislative findings and purpose; defining certain terms; limiting the scope of application; establishing a state commission on vessel gaming in the department of tax and revenue; providing that the director and employees are subject to ethics law; providing for the qualifications, terms and compensation of members of the commission; requiring an oath and bond; providing that the governor designate a chairman of the commission; providing for meetings of the commission, appointment, duties and compensation of commission executive director; providing for the appointment of commission staff; requiring staff and commission members to meet certain conditions; setting certain powers and duties of the commission; authorizing certain persons to administer oaths; authorizing the commission to require the removal of certain vessel gaming employees; requiring that all fees collected by the commission be placed in the state gaming fund; giving the commission authority to promulgate regulations; requiring coordination with state and local police departments and payment of certain police costs from the gaming fund; requiring licenses for gaming vessels, gaming devices and for supplying gaming devices; requiring licensees to meet certain qualifications; setting vessel and supplier specifications; requiring applications for licenses; providing for denial of a license; requiring an investigation fee and allowing certain applicants to prequalify for a license; requiring fingerprinting of certain applicants; requiring a bond; limiting the number of licenses to operate gaming vessels to ten; providing for additional licenses under certain circumstances; clarifying activities of licensees; expiration, renewal and license fees; establishing certain duties and requirements of licensees; providing for license denial, revocation and reprimands; providing for hearings; authorizing vessel gaming and specifying vessel gaming waterways; setting operating hour restrictions; restricting vessel gaming to certain locations; providing for docking and vessel gaming in emergencies; requiring certain reports and certifications; providing that municipalities may by ordinance prohibit gaming vessels from docking in the municipality; requiring admission tickets and charging a fee of two dollars per passenger; providing for minimum and maximum wagering; imposing an additional ten percent tax on gross receipts of licensed gaming operators; requiring payment on monthly basis; establishing a state gaming fund; requiring that ten percent of net profits be distributed to the counties; requiring a license; prohibiting defrauding devices; prohibiting certain misrepresentations; prohibiting persons under twenty-one years of age from gaming vessels; restricting wagering; prohibiting gaming by certain persons; allowing the commission to levy certain civil penalties; and providing misdemeanor penalties for violations.

Be it enacted by the Legislature of West Virginia:
That chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article twenty-four, to read as follows:
ARTICLE 24. ECONOMIC DEVELOPMENT AND VESSEL GAMING.

§29-24-1. Short title.

This article may be cited as the "Economic Development and Vessel Gaming Regulation Act of 1995".
§29-24-2. Findings; purpose.

(a) Findings. -- The Legislature finds the following:
(1) Throughout the state of West Virginia there are pressing unmet human, educational, environmental and public safety needs.
(2) The citizens of West Virginia desire to affirm common responsibilities and shared values that transcend race, religion or regional interests.
(3) The rising costs of maintaining social stability and stimulating local economic growth and development is placing greater pressure on the traditional tax revenue base.
(4) Other states in the United States have successfully adopted legalized gaming as a means to stimulate local economic activity without resorting to increased taxation.
(5) The citizens of West Virginia would benefit economically through the adoption of regulated vessel gaming on navigable and commercial waterways.
(6) While it was necessary for the citizens of the state of West Virginia to amend the Constitution of the state of West Virginia for the purpose of establishing a state lottery system such an action is not necessary for implementing gaming as stipulated and authorized under this article.
(b) Purposes and intent. -- It is the intent of the Legislature to promote the economic development of the state and to encourage the recreational tourism industry by authorizing regulated vessel gaming:
(1) Public confidence and trust can only be maintained through the strict regulation of all activities related to the operation of licensed gaming establishments, the manufacture or distribution of gambling devices and equipment and the activities of licensed gaming suppliers;
(2) Additional and critically needed revenue would be generated through the adoption of regulated vessel gaming, without resorting to traditional taxation measures;
(3) The state would position itself as a leader and have the competitive advantages of being an early entrant in the growing vessel gaming industry, while utilizing the state's unique and picturesque waterways; and
(4) The state would establish an agency to ensure that appropriate safeguards are instituted, oversee all aspects of the vessel gaming operations, and protect the public health, safety, moral and general welfare of the residents of the state.
§29-24-3. Definitions.

(a) Definitions. -- As used in this article unless the context otherwise requires, the following words and phrases shall have the meanings indicated.
(1) "Commission" means the state commission on vessel gaming, created and authorized by this article.
(2) "Controlling interest" means:
(A) For a partnership, an interest as a general or limited partner;
(B) For a corporation, an interest of more than fifty percent of the stock in the corporation; and
(C) For any other entity, an ownership interest of more than fifty percent in the entity.
(3) "Adjusted gross receipts" means the gross receipts less winnings paid to wagerers.
(4) "Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens or electronic cards by patrons of a gaming vessel owned by a licensed gaming vessel operator.
(5) "Engage in the business of operating a gaming device" means to engage in the business of operating a gaming device on a gaming vessel owned by a licensed gaming vessel operator.
(6) "Engage in the business of supplying a gaming vessel" means to engage in the business of supplying gaming equipment and supplies to a gaming vessel operated by a licensed gaming vessel operator.
(7) "Gaming" means the operation or playing of a gaming device for which a prize is awarded.
(8) "Gaming device" means a slot machine, paddle wheel, wheel of fortune, chance book, card game, dice game or other mechanism for playing a game of chance.
(9) "License" means a license issued by the commission, including:
(A) A license to operate a gaming vessel;
(B) A license to operate a gaming device; or
(C) A license to supply a gaming vessel.
(10) "Licensed gaming device operator" means an individual who is licensed by the commission to engage in the business of operating a gaming device, either as an employee or independent contractor of a licensed gaming vessel operator.
(11) "Licensed gaming vessel operator" means a person who is licensed by the commission to engage in the business of operating a gaming vessel.
(12) "Licensed gaming vessel supplier" means a person who is licensed by the commission to engage in the business of supplying gaming supplies to a gaming vessel.
(13) "License to operate a gaming device" means a license issued by the commission to engage in the business of operating a gaming device.
(14) "License to operate a gaming vessel" means a license issued by the commission to engage in the business of operating a gaming vessel.
(15) "License to supply a gaming vessel" means a license issued by the commission to engage in the business of supplying gaming supplies in excess of fifty thousand dollars annually to a gaming vessel.
(16) "Vessel gaming" means gaming on a gaming vessel operated by a licensed gaming vessel operator.
(17) "Gaming vessel employee" means any person employed by a licensed gaming vessel operator under this article.
(18) "Excursion season" includes the period beginning the first day of April through the thirty-first day of October, inclusive, of each year.
(19) "Off season" includes the period from the first day of November through the thirty-first day of March, inclusive,of each year.
(20) "Gaming vessel" means a self propelled excursion vessel that is used for authorized and licensed vessel gaming, which meets all federal and state passenger safety and navigation requirements.
(21) "Dock" means the location where a gaming vessel moors for the purpose of embarking and disembarking passengers, and the location where the gaming vessel moors for the off season.
(22) "State gaming fund" means a special fund in the state treasury created in section forty of this article to which deposits and disbursements are made and from which the operating costs of the commission will be disbursed and for other activities as proscribed pursuant to this article.
§29-24-4. Scope of provisions.
(a) Notwithstanding any provision of law to the contrary, the system of vessel gaming wagering as provided by this article is legal when conducted under the terms specified by this article.
(b) This article does not apply to the pari-mutuel system of wagering used or intended to be used in connection with the horse-race or dog-race meeting as authorized under article twenty-three, chapter nineteen of this code; lottery or lotto games authorized under article twenty-two, chapter nineteen of this code; or bingo, raffles, or games of skill or chance authorized under article twenty, chapter forty-seven of this code.
§29-24-5. Establishment.
There is hereby established within the department of tax and revenue an independent, self-sustaining state commission on vessel gaming which shall have the powers and duties specified in this article and all other powers necessary and proper to fully and effectively execute this article for the purposes of administering, regulating, overseeing and enforcing the system of vessel gaming established by this article. Its jurisdiction shall extend to every person involved in vessel gaming operations in this state.
§29-24-6. Unauthorized actions.
While the commission is self-sustaining and independent, it, its members, its executive director and its employees are subject to chapter six-b of this code.
§29-24-7. Composition; qualifications; terms; compensation;

reimbursement; oath and bond.
(a) Composition. -- The commission shall consist of five members to be appointed by the governor, with the advice and consent of the Senate. No more than three members of the commission sh
all belong to the same political party:
(1) One member
sh
all be a lawyer licensed to practice law in the state;
(2
) One member shall be a certified public accountant experienced in taxation, accounting and auditing;
(3) One member shall have at least five years experience in law enforcement and criminal investigation;
(4) One member shall be a representative of the tourism and hospitality industry;
(5) One member shall be a representative of the public at large who is at least twenty-one years old.
(b) Qualifications. -- Each member shall have appropriate qualifications to ensure the provisions of the article are exercised to the full extent authorized. Thus, each member:
(1) Shall be a citizen of the United States, a resident of the state of West Virginia and at least twenty-one years of age;
(2) Shall have knowledge of the practice, procedure and principles of gaming operations;
(3) Shall be of good moral character;
(4) May not be a licensee, or spouse, child or parent of a licensee or otherwise be subject to the regulation of the commission, or is a member or subject to the regulation of the West Virginia Racing Commission or the West Virginia Lottery Commission;
(5) May not have a financial interest in or receive compensation from a person regulated by the commission;
(6) May not be a staff member of the commission nor receive compensation from a person who was or is a member of the commission;
(7) May not hold any other public office for which compensation is received; and
(8) May not have been convicted of, or under indictment for, a felony under the laws of this state, another state, a territory of the United States, the United States or any foreign country.
(c) Terms. -- The terms and conditions of the commission shall be pursuant to the provisions under this subsection.
(1) The term of each member of the commission made pursuant to this section shall be for four years, except that for an initial period, the terms of office of the initial commission will commence from the effective date of this article and run as follows:
(A) One member for a term ending on the first day of July, one thousand nine hundred ninety-eight;
(B) Two members for a term ending on the first day of July, one thousand nine hundred ninety-nine; and
(C) Two members for a term ending on the first day of July, two thousand.
(2) After the initial appointments, all members shall be appointed for terms of four years from the expiration date of the previous term: Provided, That no member shall serve more than two terms, including the initial term.
(3) Appointments to fill vacancies on the commission shall be for the unexpired term of the member to be replaced.
(4) At the end of the maximum period in which a member can serve, the member shall continue to serve until a successor is appointed and qualifies, but no longer than one hundred eighty calendar days.
(5) The governor may remove any commission member for cause, incompetence or misconduct, notwithstanding the provisions of section four, article six, chapter six of this code.
(d) Compensation. -- Each member of the commission shall receive one hundred dollars for each day or portion thereof spent in the discharge of his or her official duties. All such payments shall be made from the state gaming fund.
(e) Reimbursement. -- Each member of the commission shall be reimbursed for all actual and necessary expenses and disbursements involved in the execution of official duties. All such payments shall be made from the state gaming fund.
(f) Oath and bond. -- Before entering upon the discharge of the duties as commissioner, each commissioner shall:
(1) Take and subscribe to the oath of office prescribed in section five, article four of the Constitution of West Virginia; and
(2) Enter into a bond the penal sum of one hundred thousand dollars with a corporate surety authorized to engage in business in this state, conditioned upon the faithful discharge and performance of the duties of the office. The executed oath and bond shall be filed in the office of the secretary of state.
§29-24-8. Commission chair.
The governor shall designate a chairperson from among the members of the commission. The term of the chairperson is three years. The chairperson may not serve more than two consecutive terms as chairperson.
§29-24-9. Meeting requirements.
(a) Meeting requirements. -- The commission shall initiate operation of the commission on a continuous basis at the earliest and most practicable time, and under the following conditions:
(1) The commission shall meet within the state at least once every three months.
(2) Three members of the commission constitute a quorum for the transaction of any business and for the performance of any duty.
(3) A majority vote of the members present shall be required for any final determination by the commission.
(4) The commission may elect to conduct business in executive session after an affirmative vote of a majority of its members present in accordance with section four, article nine-a, chapter six of this code.
(5) The commission shall keep a complete and accurate record of all its meetings in accordance with section five, article nine-a, chapter six of this code.
§29-24-10. Appointment; duties; compensation of commission

executive director.
(a) Appointment. --
There is hereby created the position of commission executive director whose duties include the management and administration of the state's vessel gaming regulation offic
e. The executive director shall:
(1) Be appointed by the commission within sixty days after the appointment of the initial slate of commission members;
(2) Serve at the pleasure of the commission, and shall not be replaced unless three commission members vote in the affirmative;
(3) Serve on a full-time basis and may not engage in any other profession or occupation, including the holding of a political office in the state, either by election or appointment while serving as executive director;
(4) Be of good repute, particularly in the areas of honesty and integrity and shall favorably pass a thorough background investigation, including finger printing and criminal investigation, prior to appointment;
(5) Not be a licensee or spouse, child or parent of a licensee or otherwise be subject to the regulation of the commission, or subject to the regulation of the West Virginia Racing Commission or the West Virginia Lottery Commission; and
(6) Not have a financial interest in or receive compensation from a person regulated by the commission.
(b) Duties. -- The duties of the executive director shall encompass the following:
(1) Direct and administer the daily operations of the commission;
(2) Collect the taxes and fees imposed under this article or regulations adopted by the commission;
(3) Keep the records and papers of the commission, including a record of each proceeding;
(4) Administer the licensing of individuals who work in connection with vessel gaming;
(5) Prepare, issue and submit reports of the commission;
(6) Perform any other duty that the commission directs.
(c) Compensation. -- The executive director is entitled to:
(1) A reasonable and competitive compensation package to be established by the commission;
(2) Reimbursement for expenses under the standard state travel regulations;
(3) All such payments shall be made from the state gaming fund.
§29-24-11. Ap

pointment o
f commission staff; conditions on membership and employees.
(a) Appointment of staff. -- With the approval of the commission and subject to the merit system, the executive director shall appoint such professional, clerical, technical and administrative personnel as may be necessary to carry out the provisions of this article. No employee of the commission shall hold an official relation to or hold any financial interest in connection with a person licensed under this article or any other gaming enterprise or business, including the West Virginia Racing Commission or the West Virginia Lottery Commission.
(b) Conditions on membership and employees. -- As a condition of membership on the commission or employment with the commission, each member and employee of the commission shall provide the commission with the individual's fingerprints and any other relevant material requested to assist in a thorough background investigation. The fingerprints and any other relevant material shall be taken by a representative of a state or federal law enforcement agency or a qualified private security agency that the commission designates in order that a thorough background investigation is completed.
§29-24-12. Po

wers; duties; oaths; removal of licensed gaming vessel employees.
(a) Powers. -- In addition to the powers set forth elsewhere in this article, the commission may:
(1) Adopt regulations to implement the provisions of this article;
(2) Sue to enforce any provision of this article by injunction;
(3) Require that a gaming device operator, gaming vessel operator or gaming vessel supplier who is licensed under this article keep financial records in a manner determined by the commission;
(4) Receive and accept the fees applicable to this article for payment into the state gaming fund;
(5) Issue a subpoena for the attendance of a witness to testify and to produce evidence;
(6) Enter or investigate the gaming vessel of a licensed gaming vessel operator to ensure that the regulations of the commission are strictly complied with; and
(7) Place a professionally qualified individual on the gaming vessel operated by a licensed gaming vessel operator for the purpose of investigation and operational accounting as deemed appropriate by the commission and require that the licensed gaming vessel operator pay the salary and expenses of the professional if any wrongdoing is confirmed or the designated accounting system is not being applied.
(b) Duties. -- In addition to the duties set forth elsewhere in this article, the commission shall:
(1) Keep a list of all gaming device operators, gaming vessel operators and gaming vessel suppliers who are currently licensed;
(2) Keep a record of all commission proceedings available for public inspection;
(3) File a written annual report to the governor, the president of the Senate and the speaker of the House of Delegates on or before the fifteenth day of January of each year and such additional reports as the governor or Legislature may request. The annual reports shall include:
(A) A statement of receipts and disbursements by the commission;
(B) The number and percentage of state residents under training and employed by each licensed gaming vessel;
(C) Actions taken by the commission; and
(D) Any additional information and recommendations that the commission may deem valuable or the governor or Legislature may request.
(4) Provide staff to supervise and inspect the operation of vessel gaming;
(5) Provide for the investigation of any complaints relating to vessel gaming;
(6) Provide for the inspection of equipment and supplies used in vessel gaming; and
(7) Review complaints from licensees relating to investigative procedures or inspections of the commission or its staff.
(c) Oaths. -- Any member of the commission or the executive director may administer oaths.
(d) Removal of licensed gaming vessel employees. -- Upon order of the commission and subject to the state's requirements for fair hearing, the commission may:
(1) Require that an employee or official of a licensed gaming vessel operator be removed from the job; or
(2) Eject or exclude any person from a gaming vessel if the person is in violation of this article or any regulation adopted under this article or interferes with the orderly conduct of vessel gaming.
§29-24-13. Fees.

The fees for issuance, operation and renewal of licenses shall be those specifically set by this article. The commission shall pay all fees collected under this article into the state gaming fund.
§29-24-14. Regulations.
(a) Generally. -- The commission shall adopt regulations in accordance with article three, chapter twenty-nine that:
(1) Set standards for electronic or mechanical gaming devices;
(2) Set standards for gaming vessel and facilities for vessel gaming;
(3) Establish minimum levels of insurance to be maintained by a licensee of the commission;
(4) Provide for the protection of security interest holders; and
(5) Provide for enforcement of the provisions of this article.
(b) Initial regulations. -- Any such regulations promulgated by the commission before the first day of September, one thousand nine hundred ninety-five may be by emergency rule.
§29-24-15. Law enforcement.
(a) Generally. -- The commission shall coordinate with the law-enforcement officers of the state and the law-enforcement officers of appropriate municipalities to enforce the provisions of this article. The law-enforcement officers of the state and municipalities shall provide assistance to the commission to enforce the provisions of this article upon the request of the executive director.
(b) Costs. --
(1) The costs of services provided by law-enforcement officers of the state in connection with enforcement provisions of this article shall be paid by the commission from the fund designated as the state gaming fund in the general fund of the state.
(2) The costs of services provided by law-enforcement officers of municipalities shall be paid from the local passenger tax revenue generated by this article and authorized under section thirty-two of this article.
§29-24-16. Licenses required.
Licenses are required for the following purposes:
(1) A per
son must have a license to operate a gaming vessel whenever the person engages in the business of operating a gaming vessel in the state;
(2) An individual must have a license to operate a gaming device whenever the individual engages in the business of operating a gaming device in the state; and
(3) A person must have a license to supply a gaming vessel whenever the person engages in the business of supplying gaming supplies in excess of fifty thousand dollars annually to a gaming vessel in the state.
§29-24-17. License qualifications; vessel specifications; supplier specifications.

(a) License qualifications. -- To qualify for a license, an applicant shall be a person who meets the requirements of this section.
(1) The applicant, if the applicant is an individual, and each individual holding a controlling interest of an applicant that is not an individual shall:
(A) Be of good character and reputation;
(B) Be at least twenty-one years old;
(C) Meet such other qualifications or requirements as the commission establishes by regulation for individual license applicants.
(b) In determining whether to grant a license to operate a gaming vessel to an applicant, the commission shall consider:
(1) The character, reputation, experience, and financial integrity of the applicant and any individual who holds a controlling interest in the applicant;
(2) The prospective total revenue to be derived by the state from the conduct of vessel gaming;
(3) The good faith affirmative action plan of each applicant to recruit, train and upgrade minorities, women, and the unemployed in all employment classifications;
(4) The good faith effort and action plan of each applicant to achieve the goal of employing eighty-five percent resident West Virginians;
(5) Any available local redevelopment and community revitalization plans, charts, or abstracts which would be indicative of the applicant's intention to promote positive relations with the local community and act in a manner consistent with good corporate citizenship;
(6) Whether the applicant has the capability of obtaining and maintaining adequate liability and casualty insurance;
(7) Whether the applicant has the capability or adequate capital to purchase and maintain a safe and navigable gaming vessel for the duration of a license; and
(8) The extent to which the applicant meets or exceeds other standards for the issuance of a license to operate a gaming vessel that the commission adopts by regulation.
(c) Vessel specifications. -- In addition to the qualifications specified in this article, an applicant for a license to operate a gaming vessel must operate a gaming vessel that:
(1) Has a capacity of at least seven hundred individuals;
(2) Is accessible to disabled individuals;
(3) Is fully registered and licensed in accordance with all other applicable state and federal laws, including those specifying passenger safety requirements and proper maintenance of sanitary conditions; and
(4) Meets any other qualifications specified by regulations adopted by the commission.
(d) Supplier specifications. -- An applicant for a license to supply gaming supplies to a gaming vessel shall demonstrate that the gaming equipment and supplies that the applicant plans to sell or lease to a licensed gaming vessel operator conform to standards established by regulations of the commission and applicable state law.
§29-24-18. License application requirements; denial.
(a) License application requirements. -- An applicant for a license shall:
(1) Submit an application to the commission on the form that the commission requires; and
(2) Pay to the commission a nonrefundable application fee for deposit into the state gaming fund:
(A) In the amount set by regulation by the commission for a license to operate a gaming device;
(B) The sum of ten thousand dollars for a license to supply a gaming vessel;
(C) The sum of fifty thousand dollars for a license to operate a gaming vessel.
(3) An application for a license to operate a gaming vessel shall contain:
(A) The identity of any person who has a controlling interest in the gaming vessel on which gaming is to be conducted by the applicant;
(B) The location where the gaming vessel is to be docked;
(C) The identity and address of each individual who has a controlling interest in the applicant, if the applicant is not an individual;
(D) Personal information on the applicant, if the applicant is an individual, or on each individual owning a controlling interest in the applicant; and
(E) Any other information required by the commission.
(b) Denial. -- An incomplete application is cause for denial of a license by the commission.
§29-24-19. Investigation fee; prelicense qualification.
(a) Investigation fee. -- When an applicant for a license to operate a gaming vessel submits an application, the applicant shall pay an investigation fee in the sum of fifty thousand dollars.
(1) The investigation fee required under this section shall be applied to the cost of any investigation of the applicant required under this article.
(2) If the costs of the investigation of an applicant are greater than fifty thousand dollars the investigative agency shall 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 one hundred thousand dollars.
(3) If the costs of the investigation of an applicant are less than any amounts paid to the commission for investigation, the commission shall refund the difference.
(4) Except as provided in paragraph (5) of this subsection (a), the information obtained by the commission in connection with the application for a license to operate a gaming vessel, or in the course of evaluating or investigating an applicant, shall be privileged, strictly confidential, and used only for the purpose of evaluating the application.
(5) Except for any action deemed necessary by the commission, the information obtained by the commission in connection with the application for a license to operate a gaming vessel, or in the course of evaluating or investigating an applicant, may not be admissible as evidence nor discoverable in any administrative hearing or court action.
(b) Prelicense qualification. -- The commission may prequalify a gaming vessel operator applicant if the applicant has applied for a gaming vessel operators license pursuant to this article and has obtained a gaming vessel operator license from another state providing:
(1) Such a prequalification will not prejudge the outcome of the commission's investigation;
(2) The permit is temporary, authorizing gaming at a specific location for which the applicant is applying;
(3) The permit is valid for a period of one hundred eighty days, subject to automatic renewal based on the progress of the commission's investigation;
(4) The applicant assumes all responsibility and financial risk if the commission subsequently denies the applicant's vessel gaming operator license;
(5) This subsection extends to vessel gaming device operators and vessel gaming suppliers as necessary to begin operations, and as defined in this article.
§29-24-20. Fingerprint requirement.
Each applicant, if the applicant is an individual, or each individual holding a controlling interest in the applicant, shall submit two sets of fingerprints. The fingerprints shall be taken by a representative of a state or federal law enforcement agency or a qualified private security agency that the commission designates.
§29-24-21. Surety bond requirement.
An applicant for a license to operate a gaming vessel or a holder of a prequalification permit shall execute a surety bond to be given to the state to guarantee the licensee faithfully makes the payments, keeps bonds and records, makes reports, and conducts gaming on the licensee's gaming vessel in accordance with this article and pursuant to regulations adopted by the commission. The surety bond shall be:
(1) In the amount of two hundred fifty thousand dollars;
(2) In a form that the commission approves; and
(3) With a surety that the commission approves.
§29-24-22. License limitations and issuance.
(a) The commission shall issue a license to each applicant for a license to operate a gaming device or a license to supply a gaming vessel who meets the requirements of this article.
(b) The commission may not issue more than:
(1) Ten licenses to operate gaming vessels: Provided, That an additional two licenses may be granted after the first day of July, one thousand nine hundred ninety-seven, if market, maritime, and safety conditions merit as determined by the commission: Provided, however, That the commission must issue a finding concerning the granting of additional licenses by the first day of April, one thousand nine hundred ninety-seven;
(2) One license to operate the same gaming vessel; and
(3) One license to the same gaming vessel operator which may enable the operator to operate up to two gaming vessels.
(c) The commission shall include on each license that the commission issues:
(1) The type of license;
(2) The identity and address of the licensee;
(3) The effective date of the license; and
(4) Any other information the commission deems appropriate.
§29-24-23. Authorization of licensees.
(a) A license to operate a gaming vessel authorizes the licensee to engage in the business of operating a gaming vessel while the license is effective.
(b) A license to operate a gaming device authorizes the licensee to engage in the business of operating a gaming device while the license is effective.
(c) A license to supply a gaming vessel authorizes the licensee to engage in the business of supplying a gaming vessel while the license is effective.
§29-24-24. Expiration date and renewal; annual license fee.
(a) Expiration date and renewal. -- A license expires on the fifth anniversary of its effective date, unless the license is renewed for additional five-year terms as provided in this section.
(1) At least two months before the license expires, the commission shall send to the licensee, by mail to the last known address of the licensee, a renewal application form and a notice that states:
(A) The date on which the current license expires;
(B) The date by which the commission must receive the renewal application for the renewal to be issued and mailed before the existing license expires; and
(C) The amount of the renewal fee.
(2) Before the license expires, the licensee may renew it for successive additional five-year terms, if the licensee:
(A) Otherwise is entitled to be licensed;
(B) Pays to the commission a renewal fee:
(i) As set by the commission for a license to operate a gaming device;
(ii) A sum of twenty-five thousand dollars for a license to operate a gaming vessel;
(iii) A sum of five thousand dollars for a license to supply a gaming vessel.
(C) Submits to the commission:
(i) A renewal application in the form that the commission requires; and
(ii) Satisfactory evidence of compliance with any additional requirements set by regulations of the commission for license renewal.
(3) The commission shall renew the license and issue a renewal certificate to each licensee who meets the requirements of this section and pursuant to the provisions of this article.
(b) Annual license maintenance fee. -- The following annual license maintenance fees are authorized under this subsection:
(1) The licensed gaming device operator shall pay to the commission an annual license maintenance fee set by the commission.
(2) The licensed gaming vessel operator shall pay to the commission an annual license maintenance fee of five thousand dollars.
(3) The licensed gaming vessel supplier shall pay to the commission an annual license maintenance fee of five thousand dollars.
§29-24-25. License requirements.
(a) In addition to other requirements of the commission:
(1) A licensed gaming vessel operator shall submit an annual audit by a certified public accountant of the financial transactions and condition of the licensee's total operations;
(2) A licensed gaming vessel supplier shall submit a list and inventory of all equipment, gaming devices, and supplies connected with vessel gaming under this article; and
(3) A licensed gaming vessel operator shall submit a list and inventory of all gaming devices offered for sale or lease in connection with the gaming vessel under this article.
(b) Each licensee shall display the license conspicuously in the office or place of business of the licensee.
(c) Each licensed gaming vessel operator shall keep a certificate of vessel inspection on the gaming vessel at all times.
(d) Each licensee shall give the commission written notice of any change of address, and any other relevant material.
§29-24-26. License denial, revocation and reprimand.
(a) License denial, revocation and reprimand. -- Subject to hearing provisions of section twenty-seven of this article, the commission, by the affirmative vote of a majority of its members, may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee or an individual holding a controlling interest in the applicant or licensee:
(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) Has been convicted of a felony under the laws of this state, another state, a territory of the United States or the United States.
(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 forty-seven of this article.
(c) In addition to any other grounds specified in this article, and subject to the hearing provisions of section twenty- seven of this article, the commission, on the affirmative vote of a majority of its members, may deny a license to operate a gaming vessel to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee or an individual holding a controlling interest in the applicant or licensee:
(1) 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 person in a senior management position who has had a license to operate a gaming vessel revoked by this state or any other state.
(2) Controls more than fifty percent of a person holding a license to operate a gaming vessel.
§29-24-27. Hearing procedures.
Except as otherwise provided by law, before the commission takes any action under the provisions of this article, it shall give the person against whom the action is contemplated an opportunity for a hearing before the commission.
(1) The commission shall give notice and hold the hearing in accordance with state articles and laws.
(2) The commission may administer oaths in connection with any proceeding under this section.
(3) The hearing notice to be given to the person shall be sent by certified mail to the last known address of the person at least thirty days before the hearing.
(4) The person may be represented at the hearing by counsel.
(5) The commission may issue subpoenas in connection with any proceeding under this section. If a person fails to comply with a subpoena issued under this subsection, on petition of the commission, the circuit court may compel obedience to the subpoena.
(6) 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.
(7) Any person aggrieved by a final decision of the commission in a contested case, as defined in governing state statute, may take an appeal as allowed.
§29-24-28. Authorization.
(a) Generally. -- Vessel gaming and the system of wagering incorporated in vessel gaming is authorized to the extent it is conducted as provided in this article.
(b) Vessel gaming is subject to the provisions of sections thirty-one and thirty-two of this article.
(c) Vessel gaming is permitted during the excursion season if excursion routes, schedule, and duration are filed with the commission by the licensed gaming vessel operator: Provided, That the commission must be notified within fifteen calendar days of any modification to the licensed gaming vessel operator's regular excursion schedule.
(d) Vessel gaming is permitted during the off season providing the gaming vessel is docked.
(e) The gaming vessel operator must certify by the fifteenth day of March of each year that its gaming vessel is fully operational for licensed vessel gaming excursions for the next excursion season as authorized under this article.
§29-24-29. Vessel gaming sites.
Vessel gaming as authorized under this article may be conducted on any commercially navigable waterway within the state on which a gaming vessel can be safely operated as defined under this section:
(1) The Ohio River including the contiguous locations from the northernmost site of Hancock County to the southernmost site of Cabell County;
(2) The Great Kanawha River from Pt. Pleasant to Belle; and
(3) The Monongahela River from Fairmont to the northern border of Monongahela County.
§29-24-30. Operating hour restrictions.
Vessel gaming is prohibited during the hours of four o'clock a.m. through ten o'clock a.m.:
(1) Notwithstanding section twelve, article seven, chapter sixty of this code, vessel gaming operators that are licensed are permitted to serve alcoholic liquors and nonintoxicating beer during operating hours during the excursion season: Provided, That the vessel departs from its dock before the legal period for the consumption of alcoholic beverages has passed;
(2) Vessel gaming operators are required to comply with existing requirements with respect to the period in which alcoholic beverages may be served and consumed during the off season.
§29-24-31. Vessel gaming restrictions.
Vessel gaming may not be conducted while the gaming vessel is docked unless:
(1) It is docked during the off season;
(2) It is temporarily docked for embarking or disembarking passengers, crew or supplies; or
(3) It is docked pursuant to subsection thirty-two of this article.
§29-24-32. Safety exemption; reporting requirement;

certification.
(a) Safety exemption. -- The captain of the gaming vessel has the sole discretion to order the gaming vessel docked during the excursion season under the following circumstances:
(1) The safety of the passengers or crew is at risk, including mechanical problems or other conditions affecting safe navigation;
(2) Inclement weather;
(3) Any other basis the commission deems appropriate.
(b) Reporting requirement. -- If the gaming vessel is docked by orders of the captain, a report must be filed with the commission within seven calendar days.
The report shall include:
(1) Full and complete justification for the docking, including any relevant weather information; and
(2) Any other information required by the commission.
(c) Certification. -- The gaming vessel may not be docked in excess of thirty percent of the excursion season, unless the commission makes a determination that normal excursions could not reasonably be undertaken: Provided, That the captain has the affirmative duty to sail unless demonstrable evidence is provided which meets the conditions set forth in subsection (b) of this section.
§29-24-33. Local municipality choice.
(a) A licensed vessel gaming operator may not dock a gaming vessel within the jurisdiction of a municipality which enacts an ordinance that prohibits vessel gaming within its jurisdiction within sixty days following the effective date of this article. Other than as provided in the preceding sentence, no state or local law or regulation providing any penalty, disability, restriction, regulation or prohibition for operating a gaming vessel, operating a gaming device or supplying a gaming vessel in accordance with this article shall apply: Provided, That the provisions of this article preempt all regulations, rules, ordinances, and laws of any county or municipality in conflict herewith.
(b) Except as provided in section thirty-four (b) of this article, no other fees may be imposed by a local municipality.
(c) Except as provided in section thirty-six, no other county or city tax may be imposed on the gaming vessel operator.
§29-24-34. Admission tickets; admission fees.
(a) Admission tickets. -- A licensed gaming vessel operator is required to issue nontransferable admission tickets to each person embarking on a gaming vessel.
(b) Admission fees. -- A licensed gaming vessel operator shall remit to the commission an admission fee for each person embarking on a gaming vessel with a ticket of admission.
(1) The admission fee is two dollars per passenger, and the commission shall allocate and disburse all funds collected under this section to the local host municipality, or county commission if the dock site is located outside a municipality.
(2) The admission fee paid to the municipality shall fund, in part, the provisions relating to municipal law enforcement under section fifteen of this article.
(3) If complimentary admission tickets are issued, the licensed gaming vessel operator shall be required to pay the per passenger tax as if such tickets were issued at the established rate.
(4) The licensed gaming vessel operator may issue admission fee-free passes to actual and necessary officials, gaming vessel employees, and under any other circumstance the commission deems appropriate.
§29-24-35. Vessel gaming wagering.
Licensed gaming vessel operators may set minimum and maximum wagers used for a gaming device on a gaming vessel. Vessel gaming may only be conducted with equipment, gaming devices, and supplies from a licensed gaming vessel supplier.
§29-25-36. Tax.
A tax is hereby imposed on the adjusted gross receipts received by a licensed gaming vessel operator. This tax is in addition to all other taxes.
§29-24-37. Tax rate.
The vessel gaming tax rate is ten percent of the adjusted gross receipts received by a licensed gaming vessel operator.
§29-24-38. Tax filing date.
A licensed gaming vessel operator shall file with the state tax commissioner a vessel gaming tax return prescribed by the tax commissioner on or before the twenty-first day following the month in which the licensed gaming vessel operator received any gross receipts.
§29-24-39. Tax payment.
A licensed gaming vessel operator shall pay the vessel gaming tax with the return prescribed by the tax commissioner that covers the month that the licensed gaming vessel operator received the gross receipts specified in the return.
§29-24-40. State gaming fund; allocation of net profits.
(a) State gaming fund. -- There is hereby created a special fund in the state treasury which shall be designated and known as the "state gaming fund." The fund shall consist of all appropriations to the fund and all interest earned from investment of the fund, and any gifts, grants or contributions received by the fund. All revenues received from licenses and applications under this article and all tax revenues from the tax imposed under section thirty-six of this article shall be deposited with the state treasurer and placed in the state gaming fund. The revenue shall be disbursed in the manner herein provided for the purposes stated herein and shall not be treated by the auditor and treasurer as part of the general revenue of the state.
(b) Allocation of net profits. -- Ten percent of the moneys in the fund at the end of each fiscal year shall be allocated to each county of this state on a per capita basis to be used by each county to promote economic development. Ten percent of the moneys in the fund at the end of each fiscal year shall be allocated to those counties in which vessel gaming is conducted to be used to promote economic development and for police, fire and safety equipment and personnel. The remainder of the moneys shall be allocated to the general revenue fund of the state for appropriation by the Legislature for economic development purposes only.
§29-24-41. License requirement.
A person may not engage in the business of, attempt to engage in the business of, or offer to engage in the business of operating a gaming device, operating a gaming vessel, or supplying a gaming vessel in the state unless licensed by the commission or operating in accordance with section nineteen of this article.
§29-24-42. Prohibition of defrauding devices.
A person on a licensed gaming vessel may not use, nor possess with the intent to use, any device to assist in:
(1) Projecting the outcome of the game;
(2) Keeping track of the cards played or in play;
(3) Analyzing the probability of the occurrence of an event relating to any game;
(4) Analyzing the strategy for playing or betting to be used in the game;
(5) Acts or employs another person to act, as a shill or decoy to encourage participation in a game; or
(6) Defrauding, cheating, or otherwise bringing into risk the legitimate operation, integrity, or outcome of the vessel gaming operations.
§29-24-43. Unauthorized representation.
Unless authorized to engage in the business of operating a gaming device, operating a gaming vessel, or supplying a gaming vessel under this article, a person may not represent to the public by use of the title "licensed gaming device operator," "licensed gaming vessel operator," or "licensed gaming vessel supplier," by other title, by description of services or otherwise, that the person is authorized to engage in the business of operating a gaming device, operating a gaming vessel, or supplying a gaming vessel.
§29-24-44. Age requirement.
An individual under the age of twenty-one years may not:
(1) Board a gaming vessel on which gaming is being conducted; or
(2) Participate in any gaming on a gaming vessel.
§29-24-45. Prohibition on wagering.
A person licensed under this article may not permit any form of wagering except as authorized under this article.
§29-24-46. Individual gaming restrictions.
A person may not participate in vessel gaming:
(1) Unless the person is present on a gaming vessel that is owned by a licensed gaming vessel operator;
(2) If the person is intoxicated; or
(3) Determined by the licensed gaming vessel operator to be unruly, disruptive, or otherwise interfering with vessel gaming.
§29-24-47. Civil penalties.
The commission may impose on a person who violates a provision of this article a civil penalty not to exceed five thousand dollars for each violation, whether or not the person is licensed under this article.
§29-24-48. Criminal penalties.
A person who violates any provision of this article is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not more than one thousand dollars, or imprisoned in the county or regional jail not more than one year or both fined and imprisoned.



NOTE: The purpose of this bill is to establish a system of authorizing and regulating vessel gaming on any commercially navigable waterway within the state on which a gaming vessel can be safely operated, including:

(1) The Ohio River and the contiguous locations from the northernmost site of Hancock County to the southernmost site of Cabell County;

(2) The Great Kanawha River from Pt. Pleasant to Belle; and

(3) The Monongahela River from Fairmont to the northern border of Monongahela County.

The bill levies a 10% tax on the gross proceeds of vessel gaming to be used by the state and counties for economic development purposes.

This article is new; therefore, strike-throughs and underscoring have been omitted.