ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 332
(Senators Oliverio, Buckalew, Craigo, Ball, Sprouse, Fanning,
Bowman, Plymale, Ross, Sharpe and Anderson, original sponsors)
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[Passed April 3, 1997; to take effect July 1, 1997.]
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AN ACT to amend and reenact sections ten and sixteen, article
twenty-two, chapter twenty-nine of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
all relating to lottery sales agents; providing for an
increase in lottery sales agent commissions; and providing
for payment of the increased commissions from unclaimed
prize funds.
Be it enacted by the Legislature of West Virginia:
That sections ten and sixteen, article twenty-two, chapter
twenty-nine of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-10. Licensed lottery sales agents; restrictions; annual
license and fee; factors; application; bond; age;
nonassignable license; organizations qualified;
commissions; display of license; geographic
distribution; monopoly prohibited; lottery
retailers; preprinted instant type lottery
tickets; fee; certificate of authority; security;
bond.
(a) The commission shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code, for the licensing of lottery
sales agents for the sale and dispensing of lottery tickets,
materials and lottery games, and the operations of electronic
computer terminals therefor, subject to the following:
(1) The commission shall issue its annual license to the
lottery sales agents for each lottery outlet and for such fee as
is established by the commission to cover its costs thereof, but
not to exceed one thousand dollars. Application for licensing as
a lottery sales agent shall be on forms to be prescribed and
furnished by the director.
(2) No licensee may engage in business exclusively as a
lottery sales agent.
(3) The commission shall ensure geographic distribution of lottery sales agents throughout the state.
(4) Before issuance of a license to an applicant, the
commission shall consider factors such as the financial
responsibility, security, background, accessibility of the place
of business or activity to the public, public convenience and the
volume of expected sales.
(5) No person under the age of twenty-one may be licensed as
an agent. No licensed agent may employ any person under the age
of eighteen for sales or dispensing of lottery tickets or
materials or operation of a lottery terminal.
(6) A license is valid only for the premises stated thereon.
(7) The director may issue a temporary license when
determined necessary.
(8) A license is not assignable or transferable.
(9) Before a license is issued, an agent shall be bonded for
an amount and in the form and manner to be determined by the
director, or shall provide such other security, in an amount,
form and manner determined by the director, as will ensure the
performance of the agent's duties and responsibilities as a
licensed lottery agent or the indemnification of the commission.
(10) The commission may issue licenses to any legitimate
business, organization, person or entity, including, but not
limited to, civic or fraternal organizations; parks and
recreation commissions or similar authorities; senior citizen centers, state-owned stores, persons lawfully engaged in
nongovernmental business on state property, persons lawfully
engaged in the sale of alcoholic beverages; political
subdivisions or their agencies or departments, state agencies,
commission-operated agencies; persons licensed under the
provisions of article twenty-three, chapter nineteen of this
code, and religious, charitable or seasonal businesses.
(11) Licensed lottery sales agents shall receive six and one
quarter percent of gross sales as commission for the performance
of their duties: Provided, That a portion of the commission not
to exceed one and one quarter percent of gross sales may be paid
from unclaimed prize moneys accumulated under section sixteen of
this article. In addition, the commission may promulgate a
bonus-incentive plan as additional compensation not to exceed one
percent of annual gross sales. The method and time of payment
shall be determined by the commission.
(12) Licensed lottery sales agents shall prominently display
the license on the premises where lottery sales are made.
(13) No person or entity or subsidiary, agent or
subcontractor thereof may receive or hold more than twenty-five
percent of the licenses to act as licensed lottery sales agent in
any one county or municipality nor more than five percent of the
licenses issued throughout this state: Provided, That the limitations of twenty-five percent and five percent in this
subdivision do not apply if it is determined by the commission
that there are not a sufficient number of qualified applicants
for licenses to comply with these requirements.
(b) The commission shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code, specifying the terms and
conditions for contracting with lottery retailers for sale of
preprinted instant type lottery tickets and may provide for the
dispensing of such tickets through machines and devices. Tickets
may be sold or dispensed in any public or private store,
operation or organization, without limitation. The commission
may establish an annual fee not to exceed fifty dollars for such
persons, per location or site, and shall issue a certificate of
authority to act as a lottery retailer to such persons. The
commission shall establish procedures to ensure the security,
honesty and integrity of the lottery and distribution system.
The commission shall establish the method of payment, commission
structure, methods of payment of winners, including payment in
merchandise and tickets, and may require prepayment by lottery
retailers, require bond or security for payment and require
deposit of receipts in accounts established therefor. Retailers
shall prominently display the certificate of authority issued by
the commission on the premises where lottery sales are made.
§29-22-16. Disposition of unclaimed prize money.
Unclaimed prize money for the prize on a winning ticket
shall be retained by the director for the person entitled thereto
for one hundred eighty days after the drawing in which the prize
was won or for one hundred eighty days after the announced end of
a game. If no claim is made for said money within one hundred
eighty days, the prize money reverts to the state lottery fund
for the purposes of paying a portion of the sales commission to
lottery sales agents pursuant to section ten of this article or
for awarding additional prizes. The commission shall promulgate
rules for the awarding of additional prizes.