Senate Bill No. 453

(By Senator Schoonover)

____________

[Introduced February 20, 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 authorizing a gaming facility; providing generally therefor; stating legislative findings that gaming facilities are important to the tourism industry and that the limited authorized games of chance are not lotteries or gift enterprises and relating to state regulation and control of the same; defining certain terms; declaring gaming and wagering legal when conducted under terms specified in article; stating that article does not apply to racing, lottery or activities regulated by article twenty, chapter forty-seven of this code; establishing division on limited gaming within the lottery commission and providing generally therefor; providing for the adoption of regulation and requiring certain rules; providing for the coordination and cost of law-enforcement activities; extending jurisdiction of local law enforcement in stated circumstances; requiring local approval of a gaming facility; providing generally for license to operate gaming facility; stating qualifications and requirements for gaming facility licenses; itemizing areas for division to consider in granting licenses; requiring licensee to execute surety bond and providing generally therefor; stating authorization of license and prohibiting transfer, assignment, sale or pledge as collateral; requiring audits and inventories; requiring licensees' annual reports and itemizing various inclusions; defining licensees' records as public records; requiring license for supplier of gaming facility and providing generally therefor, including investigation requirement; requiring license for gaming device operator and providing generally therefor, including background information and investigation requirement; requiring license for gaming facility employees and providing generally therefor, including background information and investigation requirement; setting forth annual license fee for all licenses; providing that all licensees consent to warrantless searches for person, personal property and certain premises under control of licensee; setting forth additional license requirements and prohibitions; describing license and requiring display thereof; providing for expiration and renewal every five years; stating renewal fee for all licenses; providing for license denial, revocation and reprimand subsequent to hearing thereon; providing generally for such hearings; requiring occupancy fee; designating fee be used for local law-enforcement and municipal services; requiring patrons to consent to law enforcement presence; allowing gaming operators to set wagers; requiring use of licensed suppliers; imposing tax on adjusted gross receipts; providing generally for filing and payment of taxes; creating state gaming fund; providing for distribution of state tax; prohibiting defrauding devices as itemized; setting forth prohibitions and requirements as to conduct of wagering; itemizing numerous misdemeanor and felony offenses and stating penalty of offense; authorizing for forfeiture of certain property; prohibiting participation in gaming by certain individuals under certain circumstances; providing for civil penalties; and providing for severability in event any provision held invalid.

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. AUTHORIZED GAMING FACILITY.
§29-24-1. Authorization of gaming facility; findings.
The operation of a gaming facility and related ancillary activities is authorized to the extent conducted as provided in this article.
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 iming facility as provided in the article will serve to protendustry; and, further, that the authorization of the operation of a gact and enhance the resort hotel segment of 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 the operation of gaming facilities as authorized by this article twenty-four does not constitute the operation of lotteries or gift enterprises within the purview of section thirty-six of article VI of the Constitution of this state.
§29-24-2. Definitions.
As used in this article unless the context otherwise requires, the following words and phrases shall have meanings indicated.
(1) "Gaming facility" means a designated area on the premises of a duly licensed resort hotel in which authorized games of chance are conducted.
(2) "Division" means Limited Gaming Oversight Division of the West Virginia State Lottery Commission created and authorized by this article.
(3) "Controlling interest" means:
(A) For a partnership, and interest as a general or limited partner;
(B) For a corporation, and 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.
(4) "Adjusted gross receipts" means the gross receipts of a gaming facility less winnings paid to wagerers.
(5) "Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens or electronic cards by patrons of a gaming facility.
(6) "Authorized game of chance" means any of the following, or a variation or combination there of:
(A) Baccarat;
(B) Twenty-one (blackjack);
(C) Poker;
(D) Craps;
(E) Slot machine;
(F) Video games of chance; or
(G) Roulette wheel; but shall expressly exclude punchboard, faro, keno, numbers ticket, push card, jar ticket, pull tab, or similar game.
(7) "Gaming device" means a slot machine, paddle wheel, wheel of fortune, roulette wheel, craps table, blackjack table, cards, dice, or other mechanism or equipment utilized in the operation of an authorized game of chance.
(8) "Applicant" means an individual applying for a license.
(9) "License" means a license issued by the division, including:
(A) A license to operate a gaming facility;
(B) A license to supply a gaming facility; or
(C) A license to be employed in connection with the operation of a gaming facility.
(10) "Gaming Licensee" means the licensed operator of a gaming facility.
(11) "Licensee" or "Licenseholder" means a gaming licensee, a licensed gaming facility supplier, or a licensed employee of a gaming facility.
(12) "Licensed gaming supplier" means a person who is licensed by the division to engage in the business of supplying gaming devices and supplies to a gaming facility.
(13) "Gaming facility employee" means any individual employed by a gaming licensee in connection with the operation of a gaming facility.
(14) "State gaming fund" means a special fund in the state treasury created in section thirty-five of this article to which deposits and disbursements are made and from which the operating costs of the division will be disbursed and for other activities as proscribed pursuant to this article.
(15) "Person" means any natural person, corporation, association, partnership, limited partnership or other entity, regardless of its form, structure or nature.
(16) "Resort hotel" means a single building located within a county approving the operation of a gaming facility pursuant to subsection (c), section x, article five of this chapter, containing not fewer than five hundred guest rooms under common ownership and having substantial recreational guest amenities in addition to a gaming facility. A resort hotel may annex additional buildings or facilities to in crease the amount of its meeting, exhibition, dining, entertainment, sports and kitchen support facilities space, but not to increase its number of guest rooms or the area in which authorized games of chance are conducted. In no event shall the main entrance or only access to a resort hotel qualifying under this section be through a gaming facility.
§29-24-3. Scope of provisions.
(a) Notwithstanding any provision of law to the contrary, the operation of a gaming facility is legal when conducted under the terms specified by this article.
(b) This article does not apply to the parimutuel system of wagering under article twenty-three, chapter nineteen of this code; lottery or lotto games authorized under article twenty-two of this chapter; or bingo, raffles, or games of skill or chance authorized under article twenty, chapter forty-seven of this code.
§29-24-4. Establishment of limited gaming division.
There is hereby established within the lottery commission a separate division to be known as the Limited Gaming Oversight Division 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 established by this article relating to gaming facilities in this state. Its jurisdiction shall extend to every person involved in the operations of any gaming facility in this state.
§29-24-5. Appointment of division director; duties;
compensa tion.

(a) Appointment. -- There is hereby created the position of deputy director whose duties include the management and administration of the division. The deputy director shall;
(1) Be appointed by the executive director of the West Virginia Lottery Commission within sixty days after the effective date of this article;
(2) Serve at the pleasure of the executive director;
(3) Serve on a full-time basis and shall 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 deputy 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 licenseholder, or spouse, child or parent of a licensee or licenseholder, or otherwise be subject to the regulation of the division, or be a member of or subject to the regulation of the West Virginia Racing Commission; and
(6) Not have a financial interest in any activity regulated by or receive compensation from a person regulated by the division.
(b) Duties. -- The duties of the executive director shall encompass the following:
(1) Direct and administer the daily operations of the division;
(2) Collect the taxes and fees imposed under this article or regulations adopted by the division;
(3) Keep the records and papers of the division, including a record of each proceeding;
(4) Administer the licensing of individuals who work in connection with operation of a gaming facility;
(5) Prepare, issue and submit reports of the division;
(6) Perform any other duty necessary and appropriate to the conduct of the operations of the division.
(c) Compensation. -- All payments to the deputy director shall be made from the state gaming fund. The deputy director is entitled to:
(1) A reasonable and competitive compensation package to be established by the West Virginia Lottery Commission; and
(2) Reimbursement for expenses under the standard state travel regulations.
§29-24-6. Appointment of division staff; conditions of employment.
(a) Appointment of staff. -- With the approval of the executive director of the West Virginia Lottery Commission, the deputy director shall appoint such professional, clerical, technical and administrative personnel, who shall be state employees hired in accordance with article six, chapter twenty-nine of the code, as may be necessary to carry out the provisions of this article. No employee of the division 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.
(b) Conditions of employment. -- As a condition of employment with the division, each employee of the division shall undergo a thorough background investigation, and in connection therewith shall provide the division with fingerprints and any other relevant material requested. To the extent deemed necessary by the division to ensure the thoroughness of such 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 designated by the division.
§29-24-7. Division powers and duties.
(a) Powers. -- In addition to the powers set forth elsewhere in this article, the division may:
(1) Sue to enforce any provision of this article by injunction;
(2) Issue a subpoena for the attendance of a witness to testify and to produce evidence;
(3) Administer oaths;
(4) Enter or investigate a gaming facility to ensure that the regulations of the division are strictly complied with;
(5) Place a professionally qualified individual in a gaming facility for the purpose of investigation and operational accounting as deemed appropriate by the division;
(6) Subject to the state's requirements for fair hearing, require that an employee or official of a gaming licensee be removed from the job;
(7) Eject or exclude, or authorize the ejection or exclusion of any person from a gaming facility if the person is in violation of this article or any regulation adopted under this article or interferes with the orderly conduct of the operation of such gaming facility; and
(8) Exercise such other powers as may be necessary to effectuate the provisions of this article.
(b) Duties. -- In addition to the duties set forth elsewhere in this article, the division shall:
(1) Adopt regulations to implement the provisions of this article in accordance with the provisions of chapter twenty-nine-a;
(2) Investigate applicants to determine eligibility for any license and, where appropriate, select among competing applicants;
(3) Issue all licenses;
(4) Approve the rules of all authorized games of chance and monitor all gaming activities at any licensed gaming facility;
(5) Designate appropriate classifications of personnel to be employed in the operation of a gaming facility and establish appropriate licensing standards within such classifications;
(6) charge such fees for the issuance, operation and renewal of licenses as may be authorized, required or specified in this article and receive, accept and pay all fees collected under this article into the state gaming fund;
(7) Keep a list of all gaming facility operators, gaming facility suppliers, and individuals employed in connection with a gaming facility who are currently licensed;
(8) Keep a record of all division proceedings available for public inspection;
(9) Require that a gaming facility licensee or gaming facility supplier licensed under this article keep financial records in a manner determined by the division;
(10) 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 thirtieth 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 division and its financial position;
(B) The number and percentage of state residents under training and employed by any gaming facility;
(C) Actions taken by the division, and
(D) Any additional information and recommendations that the division may deem valuable or the governor or Legislature may request.
(11) Provide staff to supervise and inspect the operation of any gaming facility, which supervision and inspection shall include, at a minimum:
(A) Monitoring of all activity and gaming devices in any gaming facility licensed pursuant to this article; and
(B) Such other monitoring as may be required to assure continuous compliance with all regulations of the division and provisions of this article;
(12) Provide for the investigation of any complaints relating to any gaming facility;
(13) Provide for the inspection of equipment and supplies used in the operation of any gaming facility; and
(14) Review complaints form licensees and licenseholders relating to investigative procedures or inspections of the division or its staff.
§29-24-8. Rules.
(a) Generally. -- The division shall adopt rules in accordance with article three, chapter twenty-nine-a that:
(1) Set standards for electronic or mechanical gaming devices;
(2) Set gaming facility standards;
(3) Establish minimum levels of insurance to be maintained by a gaming facility licensee; and
(4) Provide for implementation and enforcement of the provisions of this article.
(b) Initial rules. -- Any such rules promulgated by the division before the first day of September, on thousand nine hundred ninety-five may be by emergency rule.
§29-24-9. Law enforcement.
(a) Generally. -- The division shall coordinate with the law-enforcement officers of the state and the law-enforcement officers of appropriate municipalities and counties to enforce the provisions of this article. The law-enforcement officers of the state and of the municipalities or counties shall provide assistance to the division to enforce the provisions of this article upon the request of the deputy director.
(b) Costs. -- The actual cost of services provided by law- enforcement officers of the state in connection with enforcement provisions of this article shall be paid by the division from the fund designated as the state gaming fund, which costs shall include all costs of required training and equipment and the salaries and benefits of required additional personnel. Such payments shall be made in accordance with established procedures for the transfer of funds from the state gaming fund to the appropriate account of the division of public safety.
The costs of services provided by law-enforcement officers of municipalities or counties shall be paid from the resort hotel occupancy fee required by section thirty-two of this article, which costs shall include all costs of required training and equipment and the salaries and benefits of additional personnel.
§29-24-10. Local option.
(a) No gaming facility shall be licensed to operate in a locality unless and until the local governing body holds an election on the question of whether a gaming facility may be operated within such municipality or county. If a facility is to be located within the boundaries of a municipal corporation, the election shall be determined by a vote of the resident voters of the municipality, and if a facility is to be located outside the boundaries of a municipal corporation, the election shall be determined by a vote of the resident voters of the county in which the facility is proposed to be located.
Any local option election to approve or disapprove of the proposed authorization of a gaming facility within a municipality or county shall be in accordance with such procedures as may be adopted by the division. Such local option election may be held in conjunction with a primary or general election, or at a special election. Approval shall be by a majority of the voters casting votes on the question of approval or disapproval of gaming facility operations at the election.
Failure to obtain approval from the voters of a municipality or county shall not prevent the governing body of the municipality or county from again placing the question before the voters of the municipality or county at a subsequent general, primary or special election, subject to any required passage of time or other conditions established by the Legislature by general law.
(b) No local law or regulation providing any penalty, disability, restriction, regulation or prohibition for operating a gaming facility or supplying a gaming facility shall be enacted, and the provisions of the article preempt all regulations, rules, ordinances and laws of any county or municipality in conflict herewith.
(c) Except as specifically provided in this article, no other fees or taxes may be imposed by a local governing body.
§29-24-11. Licenses required.
(a) A person shall not engage in the business of, or attempt to engage in the business of, operating a gaming facility or supplying a gaming facility in the state unless licensed by the division or operating 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 gaming facilities in the state if such business generates in excess of fifty thousand dollars annually;
(3) For any individual employed by a gaming licensee in connection with the operation of a gaming facility in the state.
(c) All other licenses required by the state or local governing body shall be required as may apply.
§29-24-12. License to operate a gaming facility.
(a) Single license. -- The division shall issue no more than one license to operate a gaming facility in the state.
(b) Applicant qualifications. -- An applicant must be the owner of an existing resort hotel in which the gaming facility is to be located, and the resort hotel must be located within the jurisdiction of a municipality or county approving the operation of a gaming facility. Each applicant who is an individual, or, except as provided in section thirty-eight of this article with respect to publicly traded corporations, each individual holding a controlling interest of an applicant that is not an individual, shall meet such qualifications and requirements as are set forth in this article and such other qualifications or requirements as the division establishes by regulation for license applicants.
(c) Competition among applicants. -- In determining whether to grant a license to operate a gaming facility to an applicant, the division 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 design and decor of the proposed gaming facility, which shall be of high quality and in keeping with the locale;
(3) The effect such gaming facility will have in protecting or enhancing tourism in this state;
(4) The prospective total revenue to be derived by the state from the operation of such gaming facility;
(5) Whether the applicant has the capability of obtaining and maintaining adequate liability and casualty insurance;
(6) Whether the applicant has adequate capital to construct and maintain the proposed gaming facility for the duration of a license; and
(7) The extent to which the applicant meets or exceeds standards relating to public safety or similar concerns that the division adopts by regulation.
(d) License application requirements. -- Subject to section thirty-eight of this article with respect to publicly traded corporations, an applicant for a license to operate a gaming facility shall:
(1) Submit an application to the division on the form that the division requires;
(2) Pay to the division a nonrefundable application fee for deposit into the state gaming fund in the amount of fifty thousand dollars;
(3) Include on the application the following information:
(A) The identity of any person who has a controlling interest in the applicant and, as to each, the information required by the division as necessary to do a thorough credit check;
(B) The location of the resort hotel in which the proposed gaming facility is to be located; and
(C) Any other information required by the division.
(e) Gaming facility qualifications. -- An applicant for a license to operate a gaming facility must demonstrate that such gaming facility will: (1) Be accessible to disable individuals; (2) be fully registered and licensed in accordance with all other applicable state and federal laws; and (3) meet any other qualifications specified by regulations adopted by the division.
(f) Investigation fee. -- When an applicant for a license to operate a gaming facility submits an application, the applicant shall pay an investigation fee in the sum of twenty thousand dollars, which shall 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 twenty thousand dollars the investigative agency shall show cause for the additional cost. If the division approves, the applicant shall pay the additional costs as required by the division, but not to exceed a total investigative fee of eighty thousand dollars.
(2) If the costs of the investigation of an applicant are less than any amounts paid to the division for investigation, the division shall refund the difference.
(g) Surety bond requirement. -- A licensed operator of a gaming facility 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 in the licensee's gaming facility in accordance with this article and pursuant to regulations adopted by the division. The surety bond shall be:
(1) In the amount of five million dollars;
(2) In a form that the division approves; and
(3) With a surety that the division approves.
The bond may not be canceled by a surety on less than thirty days notice in writing to the division. The bond shall not be canceled during the term of the license. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.
(h) Authorization of licensees. -- 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. Without prior authorization by the division, a license to operate a gaming facility is not transferable or assignable and cannot be sold or pledged as collateral.
(i) Audits. -- A licensed gaming facility operator shall submit an annual audit by a certified public accountant registered in the state of West Virginia of the financial transactions and condition of the licensee's total operations. Such audit shall be in accordance with generally accepted auditing principles.
(j) Annual license maintenance fee. -- The licensed gaming facility operator shall pay to the division an annual license maintenance fee of five thousand dollars.
§29-24-13. Licensees' reports.
(a) Subject to the requirements of section forty-four of this article with respect to publicly traded corporations, each gaming licensee shall file an annual balance sheet and profit and loss statement pertaining to the licensee's operation of a gaming facility this state, together with a list of the stockholders or other persons having any beneficial interest in the gaming facility.
(b) A licensee shall keep its books and records so as to clearly show the following:
(1) The total number of daily patrons of any gaming facility; (2) The amount received daily from occupancy fees; and
(3) The total amount of money wagered each day and the adjusted gross receipts for the day.
(c) The licensee shall furnish to the division reports and information as the division may require with respect to its activities.
(d) The books and records kept by a licensee as provided by this section are public records, and examination, publication and dissemination of the books and records are governed by the provisions of article one, chapter twenty-nine-b of this code.
§29-24-14. License to supply gaming facility.
(a) Licenses. -- The division shall issue a license to each applicant for a license to supply a gaming facility who meets the requirements of this section.
(b) License qualifications. -- To qualify for a license, an applicant shall meet the requirements of this section. Each applicant who is an individual, and each individual holding a controlling interest of an applicant that is not an individual, shall meet the qualifications and requirements set forth in subsection (c) of section twenty of this article and such other qualifications or requirements as the division establishes by regulation.
(c) Supplier specifications. -- An applicant for a license to supply gaming devices, equipment and supplies to a gaming facility shall demonstrate that the gaming devices, equipment and supplies that the applicant plans to sell or lease to the licensed operator of such gaming facility conform to standards established by regulations of the division and applicable state law.
(d) License application requirements. -- An applicant for a license shall:
(1) Submit an application to the division on the form that the division requires; and
(2) Pay to the division a nonrefundable application fee for deposit into the state gaming fund in the amount of five thousand dollars for a license to supply a gaming facility.
(e) Investigation fee. -- When an applicant for a license to supply a gaming facility submits an application, the applicant shall pay an investigation fee in the sum of ten thousand dollars, which shall 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 the investigative agency shall show cause for the additional cost. If the division approves, the applicant shall pay the additional costs as required by the division, but not to exceed a total investigative fee of fifty thousand dollars.
(2) If the costs of the investigation of an applicant are less than any amounts paid to the division for investigation, the division shall refund the difference.
(f) Authorization of licenseholders. -- A license to supply a gaming facility authorizes the licensee to engage in the business of supplying a gaming facility while the license is effective.
(g) Inventory. -- A licensed gaming facility supplier shall submit a list and inventory of all equipment, gaming devices, and supplies sold or delivered in connection with a gaming facility in this state.
(h) Annual license maintenance fee. -- A licensed gaming facility supplier shall pay to the division an annual license maintenance fee of five thousand dollars.
§29-24-15.
License to be employed by operator of gaming

facility.
(a) Licenses. -- The division 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 application requirements. -- An applicant for a license to be employed in the operation of a gaming facility shall:
(1) Submit an application to the division on the form that the division requires; and
(2) Pay to the division a nonrefundable application fee for deposit into the state gaming fund in the amount set by regulation by the division for a license to be employed by a gaming facility, which fee may be paid by the employer.
(c) Background information and investigation required. -- To qualify for a license, an applicant shall meet the requirements of this section, shall meet the qualifications and requirements set forth in subsection (c) of section twenty of this article and such other qualifications or requirements as the division establishes by regulation. Either the applicant or the employer shall be charged for an investigation to be conducted in accordance with subsection (d) of section twenty of this article.
(d) Authorization of licenseholders. -- A license to be employed by a gaming facility authorizes the licenseholder to be so employed in the capacity designated by the division with respect to such license while the license is effective.
(e) Annual license maintenance fee. -- The licensed employee or the employer shall pay to the division an annual license maintenance fee set by the division.
§29-24-16. Consent to warrantless search.
As a condition of licensure and notwithstanding the separate licensure of the facility as a private club pursuant to article seven, chapter sixty of this code, any licensee or a licenseholder shall consent to members of the division of public safety or division employees designated by the deputy director of the division to any search without a warrant of the licensee or licenseholder's person, personal property and effects, and premises which are located in the gaming facility or adjacent facilities under control of the licensee, to inspect or investigate for criminal violations of this article or violations of rules adopted by the division.
§29-24-17. 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 five hundred dollars, or confined in the county or regional jail not less than six months, or both fined and confined.
(b) A license may only be granted to an applicant upon the express condition that:
(1) A licensee shall not, by a lease, contract, understanding, or arrangement or any kind, grant, assign, or turn over to a person the operation of a licensed gaming facility. This section does not prohibit a management contract approved by the division; and
(2) The licensee shall not in any manner permit a person other than the licensee to have a share, percentage, or proportion of the net profits generated from the operation of a gaming facility.
(c) A license shall not be granted if there is substantial evidence that the applicant for a license:
(1) Has been suspended from operating a gambling game, gaming device or gambling operation in another jurisdiction by a board or division of that jurisdiction;
(2) Has not demonstrated financial responsibility sufficient to meet adequately the requirements of the enterprise proposed;
(3) Is not the true owner of the enterprise proposed;
(4) Is not the sole owner, and other persons have ownership in the enterprise which fact has not been disclosed;
(5) Is a corporation and five percent 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 the division and the division approved the sale or transfer during the period of the license;
(6) Has knowingly made a false statement of a material fact to the division;
(7) Has demonstrated either by a police record other evidence satisfactory to the division a lack of respect for law and order;
(8) Has been convicted of a felony or other crime involving moral turpitude; or
(9) Has failed to meet any monetary obligation in connection with a gaming facility or any other form of gaming.
(d) Character references may be required of persons licensed, but the character references shall not be obtained from persons in the same or similar occupations or professions in other states.
§29-24-18. Licenses; display; change of address.
(a) The division shall include on each license that the division issues:
(1) The type of license;
(2) The identity and address of the licensee or licenseholder;
(3) The effective date of the license; and
(4) Any other information the division deems appropriate.
(b) Each licensee or licensed supplier of a gaming facility shall display the license conspicuously in the place of business of the licensee. Each holder of a license to be employed by a gaming facility shall carry the license on his or her person and have some indicia of licensure prominently displayed on his or her person.
(c) Each licensee or licenseholder shall give the division written notice of any change of address, and any other relevant material.
§29-24-19. Expiration date and renewal.
(a) 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.
(b) At least two months before the license expires, the division shall send to the licensee or licenseholder, by mail to the last know address, a renewal application form and notice that states:
(1) The date on which the current license expires;
(2) The date by which the division must receive the renewal application for the renewal to be issued and mailed before the existing license expires; and
(3) The amount of the renewal fee.
(c) Before the license expires, the licensee, may renew it for successive additional five-year terms, if the licensee:
(1) Otherwise is entitled to be licensed;
(2) Pays to the division a renewal fee:
(A) As set by the division for a license to be employed by an operator of a gaming facility, which renewal fee may be paid by the employer;
(B) A sum of twenty-five thousand dollars for a license to operate a gaming facility; and
(C) A sum of five thousand dollars for a license to supply a gaming facility.
(3) Submits to the division:
(A) A renewal application in the form that the division requires; and
(B) Satisfactory evidence of compliance with any additional requirements set by regulations of the division for license renewal.
(d) The division shall renew the license and issue a renewal certificate to each licensee or licenseholder who meets the requirements of this section and pursuant to the provisions of this article.
§29-24-20. License denial, revocation and reprimand.
(a) Subject to hearing provisions of section twenty-seven of this article, the division, may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee, or any person 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 division 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, in the case of a license to operate a gaming facility the division, on 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 any person holding a controlling interest in the applicant or licensee or licenseholder:
(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 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; or
(2) Controls more than fifty percent of any other a person holding a license to operate a gaming facility.
(d) An incomplete application is cause for denial of a license by the division.
§29-24-21. Hearing procedures.
Except as otherwise provided by law, before the division 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 division.
The division shall give notice and hold the hearing in accordance with state law, such notice to be given to the person by certified mail to the last know address of the person at least thirty days before the hearing. The person may be represented at the hearing by council.
If a person fails to comply with a subpoena issued under this subsection, on petition of the division, 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 division may hear and determine the matter.
Any person aggrieved by a final decision of the division in a contested case, as defined in governing state statute, may take an appeal as allowed.
§29-24-22. Occupancy fee; consent to presence of law enforcement officers.
(a) Occupancy fees. -- Each licensed gaming facility operator shall remit to the division an occupancy fee of two dollar per night occupancy fee per hotel guest over the age of twenty-one years, which fee may be paid directly by the gaming facility operator in lieu of being collected from patrons. The division shall allocate and disburse all funds collected under this section to the local host municipality or county. The occupancy fee paid to the municipality or county shall fund the provisions relating to local law enforcement under section twelve of this article and other municipal services. No person other than a registered overnight guest of the resort hotel over the age of twenty-one years shall be permitted in a gaming facility for the purpose of engaging in authorized games of chance.
(b) Consent to presence of law-enforcement officers. -- Any individual entering a gaming facility shall 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 such law-enforcement officer.
§29-24-23. Wagering limits; supplies.
The operator of a gaming facility may set minimum and maximum wagers for any authorized game of chance.
A gaming facility may operate authorized games of chance only with equipment, gaming devices, and supplies from a licensed gaming facility supplier.
§29-25-24. Taxes.
(a) Imposition and rate. -- A state tax is hereby imposed on the adjusted gross receipts received by a licensed gaming facility operator, which is in addition to all other applicable state and local taxes.
The state tax rate is fifteen percent of adjusted gross receipts. The amount of the tax shall be distributed as set forth in section thirty-five of this article.
(b) Tax filing date. -- A gaming facility operator shall file with the state tax division a gaming facility tax return prescribed by the tax division on or before the twenty-first day following the month in which the gaming facility operator received any gross receipts.
(c) Tax payment. -- A gaming facility operator shall pay the gaming facility tax imposed in subsection (a) of this section together with a return prescribed by the tax division that covers the month that the or gaming facility operator received the adjusted gross receipts. The taxes shall be paid for deposit in the state gaming fund created in section thirty-five of this article for disbursement in accordance with section thirty-five of this article.
§29-24-25. State gaming 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 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-four 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 purposed stated herein and shall not be treated by the auditor and treasurer as part of the general revenue of the state. The authority to disburse shall include the authority to transfer moneys deposited in the fund to a county or municipality in such amounts as are set forth in subsection (a) of this section.
(a) An amount equal to three and one-half percent of the adjusted gross receipts of the gaming facility shall be paid to the municipality or county wherein the gaming facility is located, to be allocated by the governing body of the municipality or county. At least fifty percent of this amount shall be used for improvement to local infrastructure.
(b) The balance of the state gaming fund shall be transferred to the Lottery Fund, to be allocated in the same manner as revenues derived from the operation of the state lottery.
§29-24-26. Prohibition on wagering.
(a) A licensee or licensed gaming device operator shall not permit any form of wagering except as authorized under this article.
(b) The licensee or licensed gaming device operator shall receive wagers only from an individual present in a licensed gaming facility.
(c) All gaming facility operations shall utilize a cashless wagering system whereby all players' money is converted to tokens, electronic cards, or chips at the request of the wagerer which can only be used for wagering on a licensed gaming facility, and wagering shall not be conducted with money or other negotiable currency.
(d) The gaming licensee shall not loan to any person money or any other thing of value for the purpose of permitting that person to participate in any authorized game of chance.
§29-24-27. Offenses and penalties.
(a) A person is guilty of unlawful operation of a game of chance when:
(1) Such person operates a game of chance in any location other than a licensed gaming facility.
(2) Such person acts, or employs another person to act, as a shill or decoy to encourage participation in a game of chance.
(3) Such person knowingly permits an individual under the age of twenty-one years of age to enter a gaming facility or to make a wager.
(4) Such person exchanges tokens, chips or other forms of credit to be used on gambling games for anything of value except in exchange for money.
(b) A person is guilty of felonious wagering when:
(1) Such person offers, promises, or gives anything of value or benefit to a person who is connected with a gaming facility, pursuant to an agreement or arrangement or with the 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 division. 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, an officer or employee of a licensee.
(2) Such 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 division.
(3) Such person uses or possesses with the intent to use a device to assist:
(A) In projecting the outcome of an authorized game of chance;
(B) In keeping track of cards played 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 by the division.
(4) Such person cheats at an authorized game of chance.
(5) Such person manufactures, sells, or distributes any cards, chips, dice, game or device which is intended to be used to violate any provision of this article.
(6) Such 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) Such person alters or misrepresents the outcome of an authorized game of chance on which wagers have been made after the outcome is made sure but before it is revealed to the players.
(8) Such person places a bet after acquiring knowledge, not available to all players, of the outcome of the game of chance which is subject of the bet or to aid a person in acquiring the knowledge for the purpose of placing a bet contingent on that outcome.
(9) Such person claims, collects, or takes, or attempts to claim, collect, or take, money or anything of value in or from the gambling games, 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 of greater value than the amount won.
(10) such person knowingly entices or induces an individual to go to any place where a game of chance is being conducted or operated in violation of the provisions of this article with the intent that the individual plays or participates in a such game of chance.
(11) Such person uses counterfeit chips or tokens in an authorized game of chance.
(12) Such person knowingly uses, any medium other than chips, tokens or other methods or credit approved by the division in an authorized game of chance.
(13) Such person, not a licensee or employee or agent of a licensee acting in furtherance of the licensee's interests, has in his or her possession any device intended to be used to violate a provision of this article.
(14) Such person, not a licensee or employee or agent of a 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 game of chance or for removing coins, tokens, chips or other contents therefrom.
(c) Any person who violates the provisions of subsection (a) of this section is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than one hundred dollars or regional jail not more than six months.
(d) Any person who violates the provisions of subsection (b) of this section is guilty of a felony, and, upon conviction thereof, shall be fined no less than five thousand dollars nor more than ten thousand dollars and imprisoned in the penitentiary for a definite term not less than one year nor more than five years.
§29-24-28. 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) In exchange for a bribe intended to affect the outcome of an authorized game of chance; or
(2) In exchange for or to facilitate a violation of this article.
(b) All moneys, coin, and currency found in close proximity of wagers, or of records of wagers, are presumed forfeited. The burden of proof is upon the claimant of the property to rebut this presumption.
(c) Subsections (a) and (b) do not apply if the act or omission which would give rise to the forfeiture was committed or omitted without the owner's knowledge or consent.
§29-24-29. Individual gaming restrictions.
(a) An individual may not participate in authorized games of chance in a gaming facility:
(1) Unless the individual is a registered overnight guest in the resort hotel on whose premises the gaming facility is located;
(2) If the individual is intoxicated; or
(3) If the individual is determined by the gaming facility operator or the division 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.
(b) An individual under the age of twenty-one years shall not enter a gaming facility in which authorized games of change are being conducted.
§29-24-30. Civil penalties.
The division 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.
§29-24-31.
Publicly traded corporation; Exemptions from

certain requirements; compliance with alternative requirements.
The division, through the adoption of appropriate regulations, may exempt a publicly traded corporation from compliance with some or all of the provisions of this article relating to the application of qualification for receipt of a license. To the extent of such an exemption, the corporation shall comply instead with the provisions of such regulations, except as otherwise ordered by the division. "Publicly traded corporation" as used herein means any corporation or other legal entity except a natural person which has one of more classes of securities registered pursuant to section 12 of the Securities Exchange Act of 1934, as amended (15 U.S.C. § 781), or is an issuer subject to section 15(d) of the Securities Exchange Act of 1934, as amended (15 U.S.C. §780).
§29-24-32. Severability.
If any provision of this article or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this article, and to this end the provisions of this article are declared to be severable.



NOTE: The purpose of this bill is to provide for authorized gaming facilities.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.