COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 362
(By Senators Sharpe, Minard, Minear, Snyder and Edgell)
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[Originating in the Committee on the Judiciary;
reported February 16, 2000.]
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A BILL to amend and reenact sections seven and twelve, article
twenty-two-a, chapter twenty-nine of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
all relating to racetrack video lottery generally; requiring
a national crime records check for licensure; and reducing
required number of video lottery terminals.
Be it enacted by the Legislature of West Virginia:
That sections seven and twelve, article twenty-two-a, 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 22A. RACETRACK VIDEO LOTTERY.
§29-22A-7. License and permit qualifications; individual
qualifications; applicant required to furnish information; waiver of liability; oath or affirmation; duty to provide
accurate and material information.
(a) No video lottery license or permit may be granted unless
the commission has determined that the applicant satisfies all of
the following qualifications:
(1) An applicant for a video lottery license must hold a valid
racing license granted by the West Virginia racing commission under
provisions of article twenty-three, chapter nineteen of this code.
(2) An applicant must be a person of good character and
integrity.
(3) An applicant must be a person whose background, including
criminal record, reputation and associations, does not pose a
threat to the security and integrity of the lottery or to the
public interest of the state. All new applicants for licenses and
permits issued by the commission shall furnish fingerprints for a
national criminal records check by the criminal identification
bureau of the West Virginia state police and the federal bureau of
investigation. The fingerprints shall be furnished by all persons
required to be named in the application and shall be accompanied by
a signed authorization for the release of information by the
criminal investigation bureau and the federal bureau of
investigation. The commission may require any applicant seeking
the renewal of a license or permit to furnish fingerprints for a national criminal records check by the criminal identification
bureau of the West Virginia state police and the federal bureau of
investigation. A person who has been convicted of any violation of
article twenty-two of this chapter or of this article or of any
crime related to theft, bribery, gambling or involving moral
turpitude is not eligible for any license or permit. The
commission shall revoke the license or permit of any person who is
convicted of any such crime after a license or permit is granted.
(4) An applicant must be a person who demonstrates the
business ability and experience necessary to establish, operate and
maintain the business for which a video lottery license or permit
application is made.
(5) An applicant must be a person who has secured adequate
financing for the business for which a video lottery license or
permit application is made. The commission shall determine whether
financing is from a source which meets the qualifications of this
section and is adequate to support the successful performance of
the duties and responsibilities of the licensed racetrack or permit
holder. An applicant for a video lottery license shall disclose
all financing or refinancing arrangements for the purchase, lease
or other acquisition of video lottery terminals and associated
equipment in the degree of detail requested by the commission. A
licensed racetrack shall request commission approval of any change in financing or lease arrangements at least thirty days before the
effective date of the change.
(6) A racetrack applying for a video lottery license or a
license renewal must present to the commission evidence of the
existence of an agreement, regarding the proceeds from video
lottery terminals, between the applicant and the representative of
a majority of the horse owners and trainers, the representative of
a majority of the pari-mutuel clerks and the representative of a
majority of the breeders or the representative of a majority of the
kennel owners for the applicable racetrack who hold permits
required by section two, article twenty-three, chapter nineteen of
this code.
(7) A racetrack applying for a video lottery license or a
license renewal must file with the commission a copy of any current
or proposed agreement between the applicant and any manufacturer
for the sale, lease or other assignment to the racetrack of video
lottery terminals, the electronic computer components thereof of
the terminals, the random number generator thereof of the
terminals, or the cabinet in which it is housed. Once filed with
the commission, such the agreement shall be is a public document
subject to the provisions of article one, chapter twenty-nine-b of
this code.
(b) No video lottery license or permit may be granted to an applicant until the commission determines that each person who has
control of the applicant meets all applicable qualifications of
considered to have control of an applicant:
(1) Each person associated with a corporate applicant,
including any corporate holding company, parent company or
subsidiary company of the applicant, but not including a bank or
other licensed lending institution which holds a mortgage or other
lien acquired in the ordinary course of business, who has the
ability to control the activities of the corporate applicant or
elect a majority of the board of directors of that corporation.
(2) Each person associated with a noncorporate applicant who
directly or indirectly holds any beneficial or proprietary interest
in the applicant or who the commission determines to have the
ability to control the applicant.
(3) Key personnel of an applicant, including any executive,
employee or agent, having the power to exercise significant
influence over decisions concerning any part of the applicant's
business operation.
(c) Applicants must furnish all information, including
financial data and documents, certifications, consents, waivers,
individual history forms and other materials requested by the
commission for purposes of determining qualifications for a license
or permit. No video lottery license or permit may be granted to an applicant who fails to provide information and documentation
requested by the commission. The burden of proving qualification
for any video lottery license or permit shall be is on the
applicant.
(d) Each applicant shall bear bears all risks of adverse
public notice, embarrassment, criticism, damages or financial loss
which may result from any disclosure or publication of any material
or information obtained by the commission pursuant to action on an
application. The applicant shall, as a part of its application,
expressly waive any and all claims against the commission, the
state of West Virginia and the employees of either for damages as
a result of any background investigation, disclosure or publication
relating to an application for a video lottery license or permit.
(e) All application, registration and disclosure forms and
other documents submitted to the commission by or on behalf of the
applicant for purposes of determining qualification for a video
lottery license or permit shall be sworn to or affirmed before an
officer qualified to administer oaths.
(f) An applicant who knowingly fails to reveal any fact
material to qualification or who knowingly submits false or
misleading material information is ineligible for a video lottery
license or permit.
§29-22A-12. Number and location of video lottery terminals security.
(a) A racetrack which has been licensed to conduct video
lottery games has the right to install and operate up to four
hundred video lottery terminals at a licensed racetrack. A
licensed racetrack may apply to the commission for authorization to
install and operate more than four hundred video lottery terminals.
If the commission determines that the installation of additional
machines is in the best interest of the licensed racetrack, the
lottery commission and the citizens of this state, the commission
may grant permission to install and operate additional machines.
(b) All video lottery terminals in licensed racetracks shall
be physically located as follows:
(1) The video lottery location shall be continuously monitored
through the use of a closed circuit television system capable of
recording activity for a continuous 24-hour period. All video
tapes shall be retained for a period of at least thirty days;
(2) Access to video lottery terminal locations shall be
restricted to persons legally entitled by age to play video lottery
games;
(3) The licensed racetrack shall submit for commission
approval a floor plan of the area or areas where video lottery
terminals are to be operated showing terminal locations and
security camera mount locations;
(4) No video lottery terminal may be relocated without prior
approval from the commission; and
(5) Operational video lottery terminals may only be located in
the building or structure in which the grandstand area of the
racetrack is located and in the area of the building or structure
where pari-mutuel wagering is permitted under the provisions of
article twenty-three, chapter nineteen of this code: Provided,
That if the commission, before the first day of November, one
thousand nine hundred ninety-three, has authorized any racetrack to
operate video lottery terminals and offer video lottery games in a
location which would not conform to the requirements of this
subdivision, the racetrack may continue to use video lottery
terminals registered with and approved by the commission at that
nonconforming location and to offer the games and any variations or
composites of the games as may be approved by the commission:
Provided, however, That on the effective date of this section, for
each two video lottery terminals located in a nonconforming
location, the racetrack shall locate and operate one video lottery
terminal in the building or structure in which the grandstand area
of the racetrack is located and in the area of the building or
structure where pari-mutuel wagering is permitted.
(c) A licensee shall allow video lottery games to be played
only on days when live racing is being conducted at the racetrack and/or on televised racing days: Provided, That this restriction
shall not apply to any racetrack authorized by the commissioner
prior to the first day of November, one thousand nine hundred
ninety-three, to operate video lottery terminals and conduct video
lottery games.
(d) Security personnel shall be present during all hours of
operation at each video lottery terminal location. Each license
holder shall employ the number of security personnel the commission
determines is necessary to provide for safe and approved operation
of the video lottery facilities and the safety and well-being of
the players.
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(NOTE: The purpose of this bill is to require all applicants
for video lottery licenses and permits to furnish fingerprints to
the Lottery Commission for criminal background investigations and
to remove the requirement for additional video lottery terminals at
racetracks when terminals are added in nonconforming locations.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.)