Senate Bill No. 286
(By Senators Hunter, Edgell, White and Deem)
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[Introduced January 26, 2006; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §7-1-3oo; to amend
said code by adding thereto a new section, designated
§8-12-5e; and to amend and reenact §29-22B-402, §29-22B-403
and §29-22B-1101 of said code, all relating to limited video
lottery; authorizing counties and municipalities to restrict
limited video lottery locations;
to freeze the issuance of new
limited video lottery retailer licenses; and to reduce the
number of limited video lottery terminals to four thousand
five hundred through attrition and restrictions on the sale
and transfer of licenses.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §7-1-3oo; that said
code be amended by adding thereto a new section, designated
§8-12-5e; and that §29-22B-402,§29-22B-403; and §29-22B-1101 of
said code be amended and reenacted, all to read as follows:
CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.
ARTICLE 1. COUNTY COMMISSIONS GENERALLY.
§7-1-3oo. Authority of counties to enact ordinance restricting
limited video lottery locations.
In the event a county has not created or designated a planning
commission pursuant to the provisions of article twenty-four,
chapter eight of this code, a county commission may, by order
entered of record, adopt an ordinance that limits the areas of the
county in which a business may offer limited video lottery. The
ordinance may restrict the location of a limited video lottery
location up to two thousand feet from a church, local or state
government, school or community center, or may require that it can
only be located in industrial zones. The ordinance may restrict
the location of a limited video lottery location to be no closer
than five thousand feet from another limited video lottery.
Any such ordinance is subject to the provisions of section
fifty, article twenty-four, chapter eight of this code:
Provided,
That in the event of the partial or total loss of any existing
business structure due to fire, flood, accident or any other
unforeseen act, that business structure may be repaired or replaced
and the business use of that structure may continue notwithstanding
the existence of any ordinance authorized by this section. Any
such repair or replacement will be limited to restoring or
replacing the damaged or lost structure with one reasonably
similar, or smaller, in size as measured in square footage, and any
enlargement of the business structure will subject the structure to any existing ordinance authorized by this section.
Notwithstanding any other provision of this code to the
contrary, no ordinance enacted pursuant to the provisions of this
section applies to or affects any municipal corporation that
either: (1) Has adopted and has in effect an ordinance restricting
the location of limited video lottery pursuant to the authority
granted in articles twelve or twenty-four, chapter eight of this
code; or (2) adopts an ordinance to exempt itself from any county
ordinance enacted pursuant to this section.
Any such ordinance is subject to the provisions of article
twenty-four, chapter twenty-nine.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 12. GENERAL AND SPECIFIC POWERS, DUTIES AND ALLIED
RELATIONS OF MUNICIPALITIES, GOVERNING BODIES AND
MUNICIPAL OFFICERS AND EMPLOYEES; SUITS AGAINST
MUNICIPALITIES.
§8-12-5e. Authority to enact ordinance restricting limited video
lottery locations.
In the event a municipality has not created or designated a
planning commission in accordance with the provisions of article
twenty-four of this chapter, every municipality and the governing
body of the municipality may, in addition to all other powers of
municipalities, adopt an ordinance that limits the areas of the
municipality in which businesses may offer limited video lottery.
The ordinance may restrict the location of a limited video lottery
location up to two thousand feet from a church, local or state government, school or community center, or may require that it can
only be located in industrial zones. The ordinance may restrict
the location of a limited video lottery location to be no closer
than five thousand feet from one another.
Any such ordinance is subject to the provisions of section
fifty, article twenty-four, chapter eight of this code:
Provided,
That in the event of the partial or total loss of any existing
business structure due to fire, flood, accident or any other
unforeseen act, that business structure may be repaired or replaced
and the business use of that structure may continue notwithstanding
the existence of any ordinance authorized by this section. Any
such repair or replacement will be limited to restoring or
replacing the damaged or lost structure with one reasonably
similar, or smaller, in size as measured in square footage, and any
enlargement of the business structure will subject the structure to
any existing ordinance authorized by this section. Any
such ordinance is subject to the provisions of article twenty-four,
chapter twenty-nine.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22B. LIMITED VIDEO LOTTERY.
PART 11. ALLOCATION AND DISTRIBUTION
OF VIDEO LOTTERY TERMINALS.
§29-22B-402. Powers and duties of the State Lottery Commission.
In addition to any other powers and duties set forth in this
article or article twenty-two of this chapter, the Lottery
Commission has the following powers and duties:
(1) To propose legislative rules for promulgation by the
Legislature in accordance with the provisions of article 29A-3-1,
et seq., of this code, governing the licensing, conduct, and
operation of limited video lottery that may be necessary to carry
out the purposes of this article. The director shall prepare and
submit to the Lottery Commission written recommendations concerning
proposed legislative rules for this purpose;
(2) To propose other rules for promulgation as provided in
article 29A-3-1,
et seq., of this code not inconsistent with this
article which the commission in its discretion believes to be
necessary. Authority to propose rules includes the authority to
propose amendments to rules and to propose repealing rules;
(3) Notwithstanding any other provision of this code to the
contrary, proposed legislative rules for this article filed in the
State Register by the first day of August, 2001, may be filed as
emergency rules.
(4) To conduct hearings upon complaints charging violations of
this article or applicable rules, and to conduct other hearings as
may be required by this article or rules of the Lottery Commission;
(5) To enter into written agreements with the State Police and
local law-enforcement agencies for the conduct of identification
and investigation of applicants, licensees or employees in
accordance with the provisions of this article, including, but not
limited to, (A) performing background investigations and criminal
records checks and (B) investigating possible violations that may
be discovered as a result of an investigatory process or discovered by the Tax Commissioner, the Alcohol Beverage Control Commissioner
or the Lottery Commission in the course of conducting their
respective business. Disclosure to the State Police or other
law-enforcement officials of a possible violation of this article
and material facts related thereto shall not be deemed to be an
unauthorized disclosure of information under section 11-10-5d of
this code. Nothing in this section prevents or impairs the State
Police or local law-enforcement agencies from engaging in the
activities set forth in this subdivision on their own initiative;
(6) To conduct a continuous study and investigation of limited
video lottery throughout the state: (A) To ascertain any defects in
this article or in legislative rules that may conflict with the
purposes of this article; (B) to discover any abuses in the
administration, control and oversight of limited video lottery or
(C) to discover any violation of this article or applicable
legislative rules;
(7) To formulate and recommend proposed legislation amending
this article or any applicable legislative rule so as to increase
the efficiency and effectiveness of this article;
(8) To report immediately to the Governor, the Speaker of the
House of Delegates, the President of the Senate, the minority
leaders of both houses, and
such any other state officers as the
Lottery Commission
deems considers appropriate concerning any laws
which it determines may require immediate amendment to prevent
abuses and violations of this article or any applicable rule or to
remedy undesirable conditions in connection with the administration or the operation of limited video lottery;
(9) To require such special reports from the director as it
considers necessary;
(10) To issue licenses to those involved in the ownership,
participation, or conduct of limited video lottery;
(11) To delegate to the director the authority to issue or
deny licenses and renewals under criteria established by the
commission;
(12) Upon complaint, or upon its own motion, to levy civil
penalties and to suspend or revoke licenses that the Lottery
Commission has issued for failure to comply with any applicable
provision of this article or rule of the commission;
(13) To establish and collect fees upon persons, licenses, and
gaming devices used in, or participating in, limited video lottery
as provided in this article or rule of the commission;
(14) To obtain all information from licensees and other
persons and agencies which the Lottery Commission deems necessary
or desirable in the conduct of its business;
(15) To issue subpoenas for the appearance or production of
persons, records, and things in connection with applications before
the Lottery Commission or in connection with disciplinary or
contested cases considered by the Lottery Commission;
(16) To apply for injunctive or declaratory relief to enforce
the provisions of this article and any rules promulgated pursuant
to this article;
(17) To impose and collect civil penalties as provided under this article;
(18) To inspect and examine without notice all premises
wherein limited video lottery is conducted or devices or equipment
used in limited video lottery are located, manufactured, sold, or
distributed, and to summarily seize, remove and impound, without
notice or hearing from such premises any equipment, devices,
supplies, book, or records for the purpose of examination or
inspection;
(19) To exercise other incidental powers as may be necessary
to ensure the safe and orderly regulation of limited gaming and the
secure collection of all revenues, including, but not limited to,
taxes, fees, civil penalties and other moneys due the commission;
(20) To establish internal control procedures for licensees,
including accounting procedures, reporting procedures, and
personnel policies;
(21) To establish and collect fees for performing background
checks on all applicants for licenses and on all persons with whom
the commission may agree with or contract with for the providing of
goods or services, as the commission deems appropriate;
(22) To establish and collect fees for performing, or having
performed, tests on equipment and devices to be used in limited
video lottery;
(23) To demand, at any time when business is being conducted,
access to and inspection, examination, photocopying, and auditing
of all papers, books, and records of applicants and licensees, on
their premises or elsewhere as practicable by authorized employees or agents of the commission and in the presence of the licensee or
his or her agent, pertaining to the gross income produced by any
licensed gaming establishment and to require verification of
income, and all other matters affecting the enforcement of the
policies of the Lottery Commission or any provision of this
article; and to impound or remove all papers, books and records of
applicants and licensees, without hearing, for inspection or
examination;
and
(24) To prescribe voluntary alternative methods for the
making, filing, signing, subscribing, verifying, transmitting,
receiving, or storing of returns, writings or other documents;
and
(25) To establish rules to reduce the total amount of video
lottery terminals to four thousand five hundred, through such
methods as attrition and restrictions on the sale or transfer of
licenses and permits.
§29-22B-403. Powers and duties of the director.
In addition to the duties imposed upon the director elsewhere
in this article and article 22 of this chapter, the director shall:
(1) Supervise and administer the operation of licensed limited
video lottery in accordance with the provisions of this article and
the rules of the Lottery Commission;
(2) Issue licenses to manufacturers, operators, limited video
lottery retailers and service technicians, after approval by the
Lottery Commission;
(3) Register video lottery terminals and equipment and issue
registration decals;
(4) Collect and deposit license and registration fees due
under this article;
(5) Require the mandatory posting by limited video lottery
retailers of the rules of play and the odds or house percentage on
each video lottery game;
(6) Attend meetings of the Lottery Commission or appoint a
designee to attend in the director's place;
(7) Employ and direct such personnel as may be necessary to
carry out the purposes of this article, but no person shall be
employed who has been convicted of a felony or gambling-related
offense;
(8) With the approval of the Lottery Commission, enter into
agreements with any department, agency, or unit of state government
to secure services which the director deems necessary and to
provide for the payment for such services;
(9) Employ and compensate such consultants and technical
assistants as may be required and as otherwise permitted by law;
(10) Confer with the Lottery Commission as necessary or
desirable, with regard to the operation of the division;
(11) Make available for inspection by the Lottery Commission
or any member of the commission, upon request, all books, records,
files and other information and documents in the director's office;
(12) Advise the Lottery Commission and recommend to the
commission such rules and other procedures as the director deems
necessary and advisable to improve the operation of limited video
lottery;
(13) With the concurrence of the Lottery Commission or
pursuant to commission requirements and procedures, enter into
contracts for materials, equipment and supplies;
(14) Make a continuous study and investigation of the
operation and the administration of similar laws which may be in
effect in other states or countries; of any literature on video
gaming which from time to time may be published or available; and
of any federal laws which may affect the conduct of limited video
lottery in this state with a view to recommending or effecting
changes that would serve the purposes of this article;
(15) Publish as a public document a monthly report that
contains a full and complete statement of the revenue and expenses
for each month from limited video lottery operations;
(16) Provide copies of the monthly revenue and expense
statement to the Lottery Commission, the Secretary of the
Department of Tax and Revenue, the Governor, the Speaker of the
House of Delegates, the President of the Senate, and the minority
leaders of both houses of the Legislature;
and
(17) Perform any other acts that the Lottery Commission finds
are necessary or desirable in order to carry out the purposes of
this article;
and
(18) Effective the first day of July, two thousand six, the
director may not issue any new licenses to video lottery retailers
until the total amount of video lottery terminals has been reduced
to four thousand five hundred: Provided, That when the total amount
of video lottery terminals has been reduced below four thousand five hundred, the director may issue new video lottery retailers
licenses: Provided, however, That the total amount of video lottery
terminals may not exceed four thousand five hundred.
§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.
Effective the first
day of July, two thousand six, the Lottery Commission shall reduce
the number of video lottery terminals to four thousand five hundred
as provided in this article.
(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 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 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); 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.
NOTE: The purpose of this bill is to authorize counties and
municipalities to restrict limited video lottery locations;
freezing the issuance of new limited video lottery retailer
licenses; and reducing the number of limited video lottery
terminals to 4500 through attrition and restrictions on the sale
and transfer of licenses.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§§8-12-5e
and
7-1-3oo
are new; therefore, strike-throughs and
underscoring have been omitted.
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