COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 446

(By Senators Kessler, Beach and Stollings)

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[Originating in the Committee on

 the Judiciary;

reported March 2, 2015.]

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A BILL to amend and reenact §29-22B-1101 of the Code of West Virginia, 1931, as amended, relating to increasing number of limited video lottery terminals allowed at a retail location; and requiring Lottery Commission to conduct a bid for current permit holders prior to September 1, 2015.

Be it enacted by the Legislature of West Virginia:

            That §29-22B-1101 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 22B. LIMITED VIDEO LOTTERY.

PART 11. ALLOCATION AND DISTRIBUTION

OF VIDEO LOTTERY TERMINALS.

§29-22B-1101. Limitation on number and location of video lottery terminals.

            (a) The Lottery Commission may not authorize the placement of more than nine thousand video lottery terminals in restricted access adult-only facilities in this state.

            (b) No person may directly or indirectly operate more than seven and one-half percent of the number of video lottery terminals authorized in this section, which shall may be located only in restricted access adult-only facilities.

            (c) No licensed limited video lottery retailer may be authorized to have on the premises for which the license was issued more than five seven video lottery terminals except that a fraternal society or veteran's organization that is: (A) A fraternal beneficiary society that is exempt from federal income tax under section 501 (c) (8) of the Internal Revenue Code of 1986, as amended; (B) a domestic fraternal society that is exempt from federal income tax under section 501 (c) (10) of the Internal Revenue Code; or (C) a veterans' organization that is exempt from federal income tax under section 501 (c) (19) of the Internal Revenue Code may be authorized to have on the premises for which the license was issued not more than ten video lottery terminals.

            (d) To help accommodate the change in the number of terminals authorized by the amendment to this section enacted during the 2015 regular session of the Legislature, the commission shall conduct a bid no later than September 1, 2015, for permits expiring June 30, 2021, which bid shall be open to current permit holders only and which shall be conducted in accordance with sections one thousand one hundred six, one thousand one hundred seven and one thousand one hundred nine of this article.