COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 332
(By Senators Oliverio, Buckalew, Craigo, Ball, Sprouse,
Fanning, Bowman, Plymale, Ross, Sharpe and Anderson)
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[Originating in the Committee on Finance;
reported March 25, 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 legislative rules for promulgation 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 for the
sale and dispensing of the lottery tickets, 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 a
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 and background of the applicant,
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
on the license.
(7) The director may issue a temporary license when deemed
he or she determines it 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 and
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
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 percent of gross sales may be paid
from unclaimed prize moneys that are retained by the director
under the provisions of section sixteen of this article. In
addition, the commission may promulgate establish 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 of a person or entity 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 promulgation 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 the sale of preprinted instant type lottery tickets and may
provide for the dispensing of such the 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 the lottery retailers, per location or
site, and shall issue a certificate of authority to act as a
lottery retailer to such persons them. 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 for the deposits.
Retailers shall prominently display the certificate of authority
issued by the commission on the premises where lottery sales are
made.