S SB B ORG2/CFB
Senate Bill No. 332
(By Senators Oliverio, Buckalew, Craigo, Ball, Sprouse,
Fanning, Bowman, Plymale, Ross, Sharpe, Kimble and Anderson)
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[Originating in the Committee on Small Business;
reported March 13, 1997.]
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A BILL to amend and reenact section ten, article twenty-two,
chapter twenty-nine of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, 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 section ten, article twenty-two, chapter twenty-nine of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted 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 promulgate rules and regulations
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 such
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 shall 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 deemed
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 five six
percent of gross sales as commission for the performance of their
duties: Provided, That a portion of the commission not to exceed
one 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 shall 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 shall 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 promulgate rules and regulations
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.
NOTE: The purpose of this bill is to increase lottery sales
agent commissions, with the increase to be paid from unclaimed
prize funds.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.