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Introduced Version Senate Bill 575 History

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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 575

(By Senators Guills, Caruth, Kessler, Bowman and Foster)

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[Introduced March 13, 2009; referred to the Committee on the Judiciary; and then to the Committee on Finance.]

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A BILL to amend and reenact §29-25-1, §29-25-2, §29-25-3, §29-25-5, §29-25-6, §29-25-8, §29-25-9, §29-25-11, §29-25-12, §29-25-13, §29-25-16, §29-25-17, §29-25-18, §29-25-19, §29-25-20, §29-25-21, §29-25-22, §29-25-23, §29-25-24, §29-25-25 and §29-25-26 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto twelve new sections, designated §29-25-22a, §29-25-28, §29-25-29, §29-25-30, §29-25-31, §29-25-32, §29-25-33, §29-25-34, §29-25-35, §29-25-36, §29-25-37 and §29-25-38 of said code, all relating to criminal offenses and penalties; suspension, revocation and denial of licenses; imposition of civil penalties; creating a Human Resource Benefit Fund; establishing fees; and other modifications necessary to bring conformity to one historic resort hotel with a gaming facility license and up to four pari-mutuel racetracks in the state with gaming licenses.

Be it enacted by the Legislature of West Virginia:
That §29-25-1, §29-25-2, §29-25-3, §29-25-5, §29-25-6, §29-25-8, §29-25-9, §29-25-11, §29-25-12, §29-25-13, §29-25-16, §29-25-17, §29-25-18, §29-25-19, §29-25-20, §29-25-21, §29-25-22, §29-25-23, §29-25-24, §29-25-25 and §29-25-26 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto twelve new sections, designated §29-25-22a, §29-25-28, §29-25-29, §29-25-30, §29-25-31, §29-25-32, §29-25-33, §29-25-34, §29-25-35, §29-25-36, §29-25-37 and §29-25-38, all to read as follows:
ARTICLE 25. AUTHORIZED GAMING FACILITY.
§29-25-1. Authorization of limited gaming facility; findings; intent.

(a) Operation of authorized games of chance. -- Notwithstanding any provision of law to the contrary, the operation of West Virginia lottery games permitted by this article and the related operation of a gaming facility and ancillary activities is not unlawful when conducted under the terms specified in this article and article twenty-two-c of this chapter.
(b) Legislative findings. -- The Legislature finds and declares that the tourism industry plays a critical role in the economy of this state and that a substantial state interest exists in protecting that industry. It further finds and declares that the authorization of the operation of a gaming facility at no more than one well-established historic resort hotel in this state as provided in this article will serve to protect and enhance the tourism industry, and indirectly other segments of the economy of this state, by providing a resort hotel amenity which is becoming increasingly important to many actual and potential resort hotel patrons.
The Legislature finds and declares that video lottery operations pursuant to subsection (c), section three twenty-eight of this article and the operation of the other authorized games of chance permitted by this article constitute the operation of lotteries within the purview of section thirty-six, article VI of the Constitution of West Virginia.
(c) Legislative intent. -- It is the intent of the Legislature in the enactment of this article to promote tourism and year-round employment in this state. It is expressly not the intent of the Legislature to promote gaming. As a consequence, it is the intent of the Legislature to allow limited gaming as authorized by this article and article twenty-two-c of this chapter with all moneys gained from the operation of the gaming facility, other than those necessary to reimburse reasonable costs of operation, to inure to the benefit of the state. Further, it is the intent of the Legislature that amendments made to this article by the 2009 Regular Session will establish appropriate conformity between the operations of video lottery and authorized games of chance at the licensed gaming facility and the operations of video lottery and table games at the pari-mutuel racetracks licensed under article twenty-two-a and article twenty-two-c of this chapter.
§29-25-2. Definitions.
As used in this article unless the context otherwise requires, the following words and phrases have meanings indicated:
(a) "Applicant" means any person or entity applying for a license.
(b) "Adjusted gross receipts" means the gross receipts of a gaming facility from authorized games of chance less winnings paid to wagerers in such games.
(c) "Annual average gross receipts of the pari-mutuel racetracks with table games licenses" means the amount obtained by adding the adjusted gross receipts of all West Virginia pari-mutuel racetracks with table games licenses, and then dividing that calculation by the number of West Virginia pari-mutuel racetracks with table games licenses.
(c) (d) "Authorized game of chance" includes means baccarat, twenty-one or blackjack, poker, craps, roulette, wheel of fortune, video lottery games and any other Monte Carlo style table game expressly authorized by rule of the commission, but expressly excludes punchboard, faro, keno, numbers ticket, push card, jar ticket, pull tab or similar games.
(e) "Background investigation" means a security, criminal and credit investigation of an applicant who has applied for the issuance or renewal or a license pursuant to this article, or a licensee who holds a current license.
(d) (f) "Controlling interest" means:
(1) For a partnership, an interest as a general or limited partner holding more than fifty five percent interest in the entity;
(2) For a corporation, an interest of more than fifty five percent of the stock in the corporation; and
(3) For any other entity, an ownership interest of more than fifty five percent in the entity.
(e) (g) "Controlling person" means, with respect to another person, any person directly or indirectly owning or holding a controlling interest in that other person.
(f) (h) "Commission" means the State Lottery Commission created in section four, article twenty-two, chapter twenty-nine of this code.
(i) "Designated gaming area" means one or more specific floor areas of a licensed gaming facility within which the commission has authorized operation of video lottery terminals or authorized games of chance, or the operation of both video lottery terminals and authorized games of chance.
(g)(j) "Director" shall mean the director of the State Lottery Commission.
(k) "EPROM", an "erasable programmable read-only memory chips" means the electronic storage medium on which the operation software for all games playable on a video lottery terminal resides and can also be in the form of CD ROM, flash ROM or other new technology medium that the commission may from time to time approve for use in video lottery terminals. All electronic storage media are considered to be property of the State of West Virginia.
(l) "Fringe benefits" means sickness and accident benefits and benefits relating to medical and pension coverage.
(h) (m) "Gaming devices and supplies" mean gaming tables for all authorized games of chance, roulette wheels, wheels of fortune, video lottery terminals, cards, dice, chips, tokens, markers or any other mechanical, electronic or other device, mechanism or equipment or related supplies utilized in the operation of an authorized game of chance.
(i) (n) "Gaming facility" means a designated area on the premises of an existing historic resort hotel in which authorized games of chance are conducted by a gaming licensee.
(j) (o) "Gaming licensee" means the licensed operator of a gaming facility.
(k) (p) "Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens, or electronic cards by patrons of a gaming facility reduced by gross terminal income to the extend extent gross terminal income is included in the amount of money exchanged.
(l) (q) "Gross terminal income," has the same meaning ascribed to the term as set forth in article twenty-two-a of this chapter as used in this article, and as used in article twenty-two-a of this chapter, means the total amount of cash, vouchers or tokens inserted into the video lottery terminals operated by a licensee, minus promotional credits played, and minus the total value of coins and tokens won by a player and game credits which are cleared from the video lottery terminals in exchange for winning redemption tickets.
(m) (r) "Historic resort hotel" means a resort hotel registered with the United States Department of the Interior as a national historic landmark in its National Registry of Historic Places having not fewer than five hundred guest rooms under common ownership and having substantial recreational guest amenities in addition to the gaming facility.
(s) "State gaming "Historic Resort Hotel Fund" means the special fund in the State Treasury created in section twenty-two of this article.
(t) "Historic resort hotel licensee" means the historic resort hotel with the license to operate a gaming facility as provided by this chapter.
(u) "Human Resource Benefit Fund" means the special fund in the State Treasury created in section twenty-two-a of this article.
(v) "Human Resource Benefit Advisory Board" or "board" means the advisory board created in section twenty-two-a of this article.
(n) (w) "License" means a license issued by the commission, including:
(1) A license to operate a gaming facility;
(2) A license to supply gaming devices and supplies to a gaming facility; or
(3) A license to be employed in connection with the operation of a gaming facility; or
(4) A license to provide management services under a contract to a gaming facility under this article.
(o) (x) "Licensed gaming facility employee" means any individual licensed to be employed by a gaming licensee in connection with the operation of a gaming facility.
(p) (y) "Licensed gaming facility supplier" means a person who is licensed by the commission to engage in the business of supplying gaming devices and gaming supplies to a gaming facility.
(q) (z) "Licensee" means a gaming licensee, a licensed gaming facility supplier or a licensed gaming facility employee.
(aa) "Manufacturer" means any person holding a license granted by the commission to engage in the business of designing, building, constructing, assembling or manufacturing video lottery terminals, the electronic computer components of the video lottery terminals, the random number generator of the video lottery terminals, or the cabinet in which it is housed, and whose product is intended for sale, lease or other assignment to a licensed gaming facility in West Virginia, and who contracts directly with the licensee for the sale, lease or other assignment to a licensed gaming facility in West Virginia.
(bb) "Net terminal income" means gross terminal income minus an amount deducted by the commission to reimburse the commission for its actual cost of administering video lottery at the licensed gaming facility. No deduction for any or all costs and expenses of a licensee related to the operation of video lottery games shall be deducted from gross terminal income.
(r) (cc) "Person" means any natural person, corporation, association, partnership, limited partnership, limited liability company or other entity, regardless of its form, structure or nature.
(dd) "Premises of an existing historic resort hotel" means the historic resort hotel, attachments of the historic resort hotel, and the traditional, immediate grounds of the historic resort hotel.
(ee) "Promotional credits" means credits given by the licensed gaming facility or licensed racetrack to players allowing limited free play of video lottery terminals in total amounts and under conditions approved in advance by the commission.
(t) (ff) "Video lottery games game," and video lottery terminals" shall have the same meaning ascribed the terms in article twenty-two-a of this chapter as used in this article, and as used in article twenty-two-a of this chapter, means a commission approved, owned and controlled electronically simulated game of chance which is displayed on a video lottery terminal and which:
(1) Is connected to the commission's central control computer by an on-line or dial-up communication system;
(2) Is initiated by a player's insertion of cash, vouchers or tokens into a video lottery terminal, which causes game play credits to be displayed on the video lottery terminal and, with respect to which, each game play credits entitles a player to choose one or more symbols or numbers or to cause the video lottery terminal to randomly select symbols or numbers;
(3) Allows the player to win additional game play credits, coins or tokens based upon game rules which establish the random selection of winning combinations of symbols or numbers or both and the number of free play credits, coins or tokens to be awarded for each winning combination of symbols or numbers or both;
(4) Is based upon a computer-generated random selection of winning combinations based totally or predominantly on chance;
(5) In the case of a video lottery game which allows the player an option to select replacement symbols or numbers or additional symbols or numbers after the game is initiated and in the course of play, either:
(A) Signals the player, prior to any optional selection by the player of randomly generated replacement symbols or numbers, as to which symbols or numbers should be retained by the player to present the best chance, based upon probabilities, that the player may select a winning combination;
(B) Signals the player, prior to any optional selection by the player of randomly generated additional symbols or numbers, as to whether such additional selection presents the best chance, based upon probabilities, that the player may select a winning combination; or
(C) Randomly generates additional or replacement symbols and numbers for the player after automatically selecting the symbols and numbers which should be retained to present the best chance, based upon probabilities, for a winning combination, so that in any event, the player is not permitted to benefit from any personal skill, based upon a knowledge of probabilities, before deciding which optional numbers or symbols to choose in the course of video lottery game play;
(6) Allows a player at any time to simultaneously clear all game play credits and print a redemption ticket entitling the player to receive the cash value of the free plays cleared from the video lottery terminal; and
(7) Does not use the following game themes commonly associated with casino gambling: Roulette, dice or baccarat card games:
Provided, That games having a display with symbols which appear to roll on drums to simulate a classic casino slot machine, game themes of other card games and keno may be used.
(gg) "Wager" means a sum of money or thing of value risked on an uncertain occurrence.
§29-25-3. Commission duties and powers.
(a) Duties. -- In addition to the duties set forth elsewhere in this article, the commission shall:
(1) Establish minimum standards for gaming devices and supplies, including electronic or mechanical gaming devices;
(2) Approve, modify or reject game rules of play for all authorized games of chance proposed to be operated by a gaming licensee;
(3) Establish standards governing gaming facilities generally, Approve, modify or reject minimum internal control standards proposed by the licensee gaming facility for authorized games of chance, including the maintenance of financial books and records;
(4) Provide staff to supervise, inspect and monitor the operation of any gaming facility, including inspection of gaming devices and supplies used in the operation to assure continuous compliance with all rules of the commission and provisions of this article;
(5) Establish minimum levels of insurance to be maintained with respect to a gaming facility;
(6) Investigate applicants to determine eligibility for any license and, where appropriate, select among competing applicants;
(7) Designate appropriate classifications of personnel to be employed in the operation of a gaming facility and establish appropriate licensing standards within the classifications;
(8) Issue all licenses;
(9) Charge and collect the taxes and fees authorized, required or specified in this article: and receive, accept and pay taxes and fees collected under this article into the state gaming fund
(i) Receive, accept and pay the specified percentage of taxes collected under sections twenty and twenty-one of this article into the Historic Resort Hotel Fund; and
(ii) Receive, accept and pay the specified percentage of taxes collected under sections twenty and twenty-one of this article into the Human Resource Benefit Fund;

(10) Maintain a record of all licenses issued;
(11) Keep a public record of all commission actions and proceedings; and
(12) File a written annual report to the Governor, the President of the Senate and the Speaker of the House of Delegates on or before January 30 of each year and any additional reports as the Governor or Legislature may request.
(b) Powers. -- In addition to the powers set forth elsewhere in this article, the commission has the following powers:
(1) To sue to enforce any provision of this article by injunction;
(2) To hold hearings, administer oaths and issue subpoenas for the attendance of a witness to testify and to produce evidence;
(3) To enter a gaming facility at any time and without notice to ensure strict compliance with the rules of the commission;
(4) To bar, for cause, any person from entering or participating in any capacity in the operation of a gaming facility; and
(5) To exercise such other powers as may be necessary to effectuate the provisions of this article.
(c)Video lottery games. -- The commission is authorized to implement and operate video lottery games at the gaming facility licensed pursuant to this article consistent with the gaming licensee's operation of the gaming facility. With respect to video lottery games the provisions of article twenty-two-a of this chapter apply to this article, except in the event of a conflict or inconsistency between any of the provisions of this article and the provisions of article twenty-two-a of this chapter. In that event, the provisions of this article shall supersede any conflicting or inconsistent provisions contained in article twenty-two-a of this chapter. In carrying out its authority hereunder, the commission may: (1) Specify by rule additional licensure and fee requirements consistent with the provisions of article twenty-two-a respecting video lottery manufacturers, service technicians and validation managers; and (2) adopt and specify any reasonable procedure, protocol or requirement to enable video lottery terminals to effectively and efficiently communicates with the commission's central computer system used in administering article twenty-two-a of this chapter.
§29-25-5. Rules.
The commission shall propose for promulgation legislative rules in accordance with the provisions of article three, chapter twenty-nine-a of this code as are necessary to provide for implementation and enforcement of the provisions of this article. Any such legislative rules proposed by the commission before September one thousand nine hundred ninety-nine 2009, may be by emergency rule.
§29-25-6. Law enforcement.
(a) Generally. -- Notwithstanding any provision of this code to the contrary, the director may commission shall, by contract or cooperative agreements, with state, county or municipal law enforcement agencies operating in the county in which the gaming facility is located arrange for such law enforcement services as agreement with the West Virginia State Police, arrange for those law-enforcement services uniquely related to gaming as such occurs at the gaming facility that are necessary to enforce the provisions of this article.
(b) Costs. --The actual cost of services provided by the State Police or municipal law enforcement agencies in connection with enforcement of the provisions of this article West Virginia State Police pursuant to a contract or cooperative agreement entered into pursuant to the provisions of subsection (a) of this section, including, but not limited to necessary training costs, shall be paid from the state gaming fund, which cost shall include all costs of required training and equipment as well as salary, benefits and other direct costs of additional required personnel by the commission as an administrative expense.
The costs of services related to a gaming facility provided by law-enforcement officers of the county in which such gaming facility is located shall be paid from that portion of the state gaming fund allocated to such county. The costs shall include all costs of required training and equipment as well as salary, benefits and other direct costs of additional personnel.
(c) Notwithstanding any provision of this code to the contrary, the West Virginia State Police shall have exclusive jurisdiction over felony offenses committed on the grounds of the gaming facility.
§29-25-8. Licenses required.
(a) No person may engage in any activity in connection with a gaming facility in this state for which a license is required by subsection (b) of this section unless that person has been licensed by the commission in accordance with this article.
(b) Licenses are required for the following purposes:
(1) For any person engaging in the business of operating a gaming facility in the state;
(2) For any person engaging in the business of supplying a gaming facility with gaming devices, supplies or services; if the gaming facility expends more than fifty thousand dollars annually with such person
(3) For any individual employed by a gaming licensee in connection with the operation of a gaming facility in the state; and
(4) For any person providing management services under a contract to a gaming facility.
(c) Any license required under this article shall be in addition to all other licenses or permits otherwise required by law.
§29-25-9. License to operate a gaming facility.
(a) Single license. -- The commission may issue only one license to operate a gaming facility. If the one license limitation in the preceding sentence is found to be unconstitutional in a final, nonappealable order by a court of competent jurisdiction, the commission shall have no authority to issue any license under this article and, in such event, the provisions of this article shall not be severable, and any license issued under the provisions of this article prior thereto shall be void. The Legislature intends that no more than one license to operate one gaming facility in this state shall be authorized in any event.
(b) Applicant qualifications. -- Any applicant must be the owner or be wholly owned by the owner of an existing historic resort hotel in which the gaming facility is to be located, and the resort hotel must be located within the jurisdiction of a county approving the operation of a gaming facility in accordance with section seven of this article. Any applicant must meet the qualifications and requirements set forth in this article and rules adopted by the commission. In determining whether to grant a license to operate a gaming facility to an applicant, the commission shall consider:
(1) The character, reputation, experience and financial integrity of the applicant and any controlling person of the applicant;
(2) Whether the applicant has adequate capital to construct and maintain the proposed gaming facility for the duration of a license;
(3) The extent to which the applicant meets standards contained in rules adopted by the commission relating to public safety or other standards; and
(4) The plan submitted by the applicant regarding employment levels and the extent to which the submitted plan demonstrates an ability on the part of the applicant to create at least one hundred full-time equivalent jobs with a salary and benefit package commensurate with existing employees at the historic resort hotel.
(c) Conditions attached to license. -- A license to operate a gaming facility may only be granted to an applicant upon the express condition that: Floor plan submission requirement. -- Prior to commencing the operation of any games of chance in a designated gaming area, the gaming facility licensee shall submit to the commission for its approval a detailed floor plan depicting the location of the designated gaming area in which games of chance gaming equipment will be located and its proposed arrangement of the games of chance gaming equipment. If the floor plans for the designated gaming area preserves the historic integrity of the historic resort hotel where the licensed gaming facility is located, then any floor plan submission that satisfies the requirements of the rules promulgated by the commission shall be considered approved by the commission unless a gaming facility is notified in writing to the contrary within one month of filing a detailed floor plan.
(1)The licensee may not enter into any management service contract, understanding or arrangement of any kind which would act to permit any person other than the licensee to operate a licensed gaming facility unless the management service contract, understanding or arrangement is in writing and has been approved by the commission, which approval shall be conditioned upon successful completion of a thorough background investigation at the expense of the licensee;
(2) The licensee may not in any manner permit a person other than the licensee to have a share, percentage or proportion of any profits generated from the operation of a gaming facility;
(3) The licensee may not in any manner permit a person other than the licensee to have a share, percentage or proportion of any profits generated from the operation of the gaming facility without the prior written approval of the director of the Lottery Commission; and,
(4) The licensee shall permit authorized games of chance to be played only during those hours established and approved by the commission.
(d) Management service contracts. --
(1)
Approval. -- A gaming facility may not enter into any management service contract that would permit any person other than the licensee to act as the commission's agent in operating games of chance unless the management service contract: (A) Is with a person licensed under this article to provide management services; (B) is in writing; and (C) the contract has been approved by the commission.
(2)
Material change. -- A licensed gaming facility shall submit any material change in a management service contract previously approved by the commission to the commission for its approval or rejection before the material change may take effect.
(3)
Prohibition on assignment or transfer. -- A management services contract may not be assigned or transferred to a third party.
(4)
Other commission approvals and licenses. -- The duties and responsibility of a management services provider under a management services contract may not be assigned, delegated, subcontracted or transferred to a third party to perform without the prior approval of the commission. Third parties must be licensed under this article before providing service. The commission shall license and require the display of West Virginia Lottery game logos on appropriate game surfaces and other gaming items and locations as the commission considers appropriate.
(d) (e) License application requirements. -- An applicant for a license to operate a gaming facility shall:
(1) Submit an application to the commission on a form prescribed by the commission, which form must include:
(A) Information concerning the applicant and of any controlling person of the applicant sufficient to serve as a basis for a thorough background check;
(B) Subject to the provisions of subsection (e) of this section with respect to publicly traded corporation, the identity of all stockholders or other persons having a financial interest in either the applicant or any controlling person of the applicant and the identity of each director or executive officer of the applicant and of any controlling person of the applicant;
(C) The identity of the historic resort hotel at which the gaming facility is to be located, including identification of the county in which the historic resort hotel is located; and
(D) Any other information designated by the commission as appropriate to assist it in determining whether a license should be issued;
(2) Pay to the commission a nonrefundable application fee for deposit into the state gaming Community Based Service Fund in the amount of $25,000 $65,000;
(3) Pay to the commission an investigative fee for deposit in the state gaming fund in the amount of twenty thousand dollars.
(f) Privately-held corporations. -- In the event that an applicant or any controlling person of an applicant is a privately- held corporation, then the commission may not grant a license until the commission determines that each person who has control of the applicant also meets all of the qualifications the applicant must meet to hold the license for which application is made. The following persons are 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; and
(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.
(e) (g) Publicly traded corporations. -- In the event that an applicant or any controlling person of an applicant is a publicly traded corporation, then information otherwise required to be furnished by an applicant with respect to stockholders, directors and executive officers of the publicly traded corporation shall be limited to information concerning only those executive officers of the publicly traced traded corporation whose ongoing and regular responsibilities relate or are expected to relate directly to the operation or oversight of the gaming facility. "Publicly traded corporation" as used herein means any corporation or other legal entity, except a natural person, which has one or more classes of securities registered pursuant to section twelve of the Securities Exchange Act of 1934, as amended (15 U.S.C. §78), or is an issues subject to section fifteen-d of that act.
(f) (h) Gaming facility qualifications. -- An applicant for a license to operate a gaming facility must demonstrate that the license to operate a gaming facility must demonstrate that the gaming facility will: (1) Be accessible to disabled individuals; (2) not be located at the main entrance to the historic resort hotel; (3) be licensed in accordance with all other applicable federal, state and local laws; and (4) meet any other qualifications specified by rules adopted by the commission.
(g)Investigative fee. -- The investigative fee paid by an applicant at the time of submitting an application shall be applied to the cost of any investigation relating to the applicant required under this article.
(1) If the cost of the investigation is greater than twenty thousand dollars, the investigative agency shall show cause for the additional cost. The applicant shall pay the additional costs to the extent approved by the commission, but not to exceed a total investigative fee of forty thousand dollars;
(2)If the cost of the investigation is less than the aggregate investigative fee paid by an applicant, the commission shall refund the difference.
(h) (i) Surety bond requirement. -- The licensed operator of a gaming facility shall execute a surety bond to be given to the state to guarantee the licensee faithfully makes the all payments keeps books and records, makes reports and conducts gaming in the licensee's gaming facility in accordance with the provisions of this article and rules promulgated by the commission. The surety bond shall be:
(1) In the an amount of five million dollars determined by the commission to be adequate to protect the state against nonpayment by the licensee of amounts due the state under this article;
(2) In a form approved by the commission; and
(3) With a surety approved by the commission who is licensed to write surety insurance in this state. The bond shall remain in effect during the term of the license and may not be canceled by a surety on less than thirty days' notice in writing to the commission. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond. The bond must remain in effect during the term of the license, and may not be canceled by a surety on less than thirty days notice in writing to the commission. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.
(i) (j) Authorization of license. -- A license to operate a gaming facility authorizes the licensee to engage in the business of operating a gaming facility while the license is effective. A license to operate a gaming facility is not transferable or assignable and cannot be sold or pledged as collateral.
(j) (k) Audits. -- A licensed gaming facility operator must submit to the commission an annual audit, by a certified public accountant who is, or whose firm is, licensed in the State of West Virginia, or by a nationally recognized accounting firm, of the financial transactions and condition of the licensee's total operations. The audit must be in accordance with generally accepted auditing principles.
(k) (l) Annual license maintenance renewal fee. -- For the second year that it is licensed, the licensed gaming facility operator must pay to the commission an annual a license maintenance renewal fee of five thousand dollars $250,000. For the third year that it is licensed, the licensed gaming facility must pay to the commission a license renewal fee of $500,000. For every year after the third year that it is licensed, the licensed gaming facility must pay to the commission a license renewal fee that is calculated by determining the annual average gross receipts of the West Virginia pari-mutuel racetracks with table games licenses for the last full fiscal year of adjusted gross receipts available, and dividing that number into the licensed gaming facility operator's adjusted gross receipts for the same full fiscal year of adjusted gross receipts to obtain a percentage, and by multiplying the resulting percentage by $2,500,000: Provided, That the amount required to be paid by the licensed gaming facility shall be not less than $500,000, nor more than $2,500,000.
(l) (m) The licensed gaming facility operator shall provide to the commission, at no cost to the commission, suitable office space at the gaming facility to perform the duties required of it by the provisions of this article.
§29-25-11. License to supply gaming facility.
(a) Licenses. -- The commission may issue a license to each applicant for a license to supply a gaming facility with gaming devices, gaming supplies or services who meets the requirements of this section.
(b) License qualifications. -- To qualify for a license, applicant shall meet the requirements of this section. Each applicant who is an individual who is a controlling person of an applicant that is not an individual must be of good moral character and reputation, and must have the necessary experience and financial ability to successfully carry out the functions of a gaming facility supplier. The commission may adopt rules establishing additional requirements for a gaming facility supplier.
(c) Supplier specification. -- An applicant for a license to supply gaming devices, equipment and supplies to a gaming facility must demonstrate that the gaming devices, equipment and supplies that the applicant plans to sell or lease to the licensed operator of the gaming facility, conform or will conform to standards established by rules of the commission and applicable state law.
(d) License application requirements. -- An applicant for a license shall:
(1) Submit an application to the commission on the form that the commission requires including adequate information to serve as a basis for a thorough background check;
(2) Submit 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; and
(2) (3) Pay to the commission a nonrefundable application fee for deposit into the state gaming fund in the amount of $5,000 $100 to be retained by the commission as reimbursement for the licensing process.
(3) Pay to the commission an investigative fee for deposit into the state gaming fund in the amount of ten thousand dollars, or a lesser amount as the commission upon application may conditionally approve in a particular case.
(e)Investigative fee. -- the investigative fee paid by an applicant for a license to supply a gaming facility must be applied to the cost of any investigation of the applicant required under this article.
(1) If the costs of the investigation of an applicant are greater than ten thousand dollars, or the lesser investigative fee as may have been conditionally approved by the commission, the investigative agency must show cause for the additional cost. If the commission approves, the applicant shall pay the additional costs as required by the commission, but not to exceed a total investigative fee of fifty thousand dollars.
(2) If the costs of the investigation of an application are less than the aggregate investigative fee paid to the commission, the commission shall refund the difference.
(f) (e) Authorization of licensee. -- A license to supply a gaming facility authorizes the licensee to engage in the business of selling gaming devices and supplies to a gaming facility while the license is effective.
(g) (h) Inventory. -- A licensed gaming facility supplier shall submit to the commission a list of all equipment, gaming devices and supplies sold or delivered to a gaming facility in this state when required by the commission.
(h) (i) Annual license maintenance renewal fee.-- A licensed gaming facility supplier shall pay to the commission an annual license maintenance renewal fee of $5,000 $100.
§29-25-12. License to be employed by operator of gaming facility.
(a) Licenses. -- The commission shall issue a license to each applicant for a license to be employed in the operation of a gaming facility who meets the requirements of this section.
(b) License qualifications. -- To qualify for a license to be employed in a gaming facility, the applicant shall be an individual of good moral character and reputation and have been offered employment by the gaming facility contingent upon licensure pursuant to the provisions of this section. The commission by rule, may specify additional requirements to be met by applicants based on the specific job classification in which the applicant is to be employed.
(c) License application requirements. -- An applicant for a license to be employed in the operation of a gaming facility shall:
(1) Submit an application to the commission on the form that the commission requires, including adequate information to serve as a basis for a thorough background check;
(2) Submit 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; and
(2) (3) Pay to the commission a nonrefundable investigative application fee for deposit into the state gaming fund in the amount of three hundred dollars $100 to be retained by the commission as reimbursement for the licensing process. This which fee may be paid on behalf of the applicant by the employer.
(3)Pay to the commission a nonrefundable investigative fee for deposit into the state gaming fund in an amount to be fixed by the commission by rule, which fee may be paid on behalf of the applicant by the employer.
(d) Authorization of licensee. -- A license to be employed by a gaming facility authorizes the licensee to be so employed in the capacity designated by the commission with respect to the license while the license is effective.
(e) Annual license maintenance renewal fee. -- Each licensed employee shall pay to the commission an annual license maintenance renewal fee set by the commission, which maintenance renewal fee may vary based on the capacity designated with respect to the licensee but in no event to exceed three hundred dollars $100. The fee may be paid on behalf of the licensed employee by the employer.
§29-25-13. False statements on applications; other license requirements and prohibitions.
(a) Any person who knowingly makes a false statement on an application is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than one hundred nor more than $500 $1,000, or confined in the county or regional jail and committed to a state correctional facility for not less more than six months, or both fined and confined except that in the case of a person other than a natural person, the amount of the fine imposed may not be more than $25,000.
(b) The commission may not grant a license pursuant to the provisions of this article if there is substantial evidence that the applicant:
(1) Has knowingly made a false statement of a material fact to the commission;
(2) Has been suspended from operating a gambling game, gaming device or gambling operation in another jurisdiction by a board or other governmental authority of that jurisdiction having responsibility for the regulation of gambling or gaming activities;
(3) Has been convicted of a felony, an offense of moral turpitude, a gambling offense, a theft or fraud offense, or has otherwise demonstrated, either by a police record or other satisfactory evidence, a lack of respect for law and order;
(4) Has failed to meet any monetary obligation in connection with a gaming facility or any other form of gaming; or
(5) In the case of an applicant for a license to operate a gaming facility or to supply a gaming facility;
(A) Has not demonstrated financial responsibility sufficient to meet adequately the requirements of the enterprise proposed;
(B) Is not the true owner of the enterprise or is not the sole owner and has not disclosed the existence or identity of other persons who have an ownership interest in such enterprise; or
(C) Is a corporation and five percent or more of the stock of the corporation is subject to a contract or option to purchase at any time during the period for which the license is issued unless the contract or option was disclosed to and approved by the commission.
(c) In addition to any other grounds specified in this article, and subject to the hearing provisions of section seventeen of this article, in the case of a license to operate a gaming facility the commission may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee or any controlling person of the applicant or licensee knowingly employs an individual in a senior management position who has been convicted of a felony under the laws of this state, another state, a territory of the United States, or the United States or employs any individual in a senior management position who has had a license relating to the operation of a gaming facility revoked by this state or any other state.
(d) Character references may be required of persons licensed, but the character referenced may not be obtained from persons in the same or similar occupations or professions in other states.
§29-25-16. License denial, revocation and reprimand.
(a) The commission may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee, or any controlling person of the applicant or license:
(1) Fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another;
(2) Fraudulently or deceptively uses a license; or
(3) Is convicted of a felony under the laws of this state, another state, a territory of the United States or the United States;
(4) Is convicted of a misdemeanor under the laws of this state, another state, the United States or a territory of the United States for gambling or a gambling related activity; or
(5) Is not complying with this Act, the rules, or the minimum internal control standards promulgated by the commission or the gaming facility.
(b) Instead of or in addition to reprimanding a licensee or suspending or revoking a license, the commission may impose a civil penalty under section twenty-seven of this article.
§29-25-17. Hearing procedures.
(a) Right to a hearing. -- Except as otherwise provided by law, before the commission takes any action involving a licensee under the provisions of this article, it must give the persons against whom the action is contemplated an opportunity for a hearing before the commission.
(b) Notice of hearing and right to counsel. -- The commission shall give notice and hold the hearing in accordance with state law, article five, chapter twenty-nine-a of this code. The notice must be given to the person by certified mail to the last known address of the person at least thirty days before the hearing. The person may be represented at the hearing by counsel.
(c) Failure to comply with subpoena. -- If a person fails to comply with a subpoena issued under this section, on petition of the commission, the circuit court may compel obedience to the subpoena. If after due notice the person against whom the action is contemplated fails or refuses to appear, the commission may hear and determine the matter.
(d) Appeal. -- Any person aggrieved by a final decision of the commission in a contested case may file a petition for appeal in the circuit court of Kanawha County within thirty days after the person received notice of the final order or decision, as provided in section four, article five, as defined in chapter twenty-nine-a of this code. may appeal as provided for in that chapter
§29-25-18. Inspection and seizure.
As a condition of licensure, to inspect or investigate for criminal violations of this and notwithstanding the separate licensure of the facility as a private club pursuant to article or violations of the rule promulgated by the commission, the commission's seven, chapter sixty of this code, any licensee must consent to any search without a warrant by agents of the commission or of the State Police designated by the commission of the licensee's person, personal property and effects, and premises which are located in the gaming facility or adjacent facilities under the control of the licensee, to inspect or investigate for criminal violations of this article or violations of rules adopted by the commission. and the West Virginia State Police may each, without notice and without warrant:
(1) Inspect and examine all premises of the gaming facility with authorized games of chance, gaming devices, the premises where gaming equipment is manufactured, sold, distributed or serviced or any premises in which any records of the activities are prepared or maintained;
(2) Inspect any gaming equipment in, about, upon or around the premises of a gaming facility with authorized games of chance;
(3) Seize summarily and remove from the premises and impound any gaming equipment for the purposes of examination, inspection or testing;
(4) Inspect, examine and audit all books, records, and documents pertaining to a gaming facility licensee's operation;
(5) Summarily seize, impound or assume physical control of any book, record, ledger, authorize game of chance, gaming equipment or device, cash box and its contents, counting room or its equipment or authorized game of chance operations; and
(6) Inspect the person, and the person's personal effects present on the grounds of a licensed gaming facility with authorized games of chance, of any holder of a license issued pursuant to this article, while that person is present on the grounds of a licensed gaming facility with authorized games of chance.
§29-25-19. Consent to presence of law-enforcement officers; wagering limits; operations and services; posting of betting limits.
(a) Consent to presence of law-enforcement officers. -- Any individual entering a gaming facility must be advised by the posting of a notice or other suitable means of the possible presence of state, county or municipal law-enforcement officers, and by entering the gaming facility impliedly consents to the presence of the law-enforcement officers.
(b) Setting of wagering limits Commission discretion in gaming operations. --The operator of a gaming facility may set minimum wagers for any authorized game of chance, except for video lottery. Video lottery terminals operated at the gaming facility may not allow more than two dollars to be wagered on a single game. The following subsections apply exclusively to articles twenty-two-a, twenty-two-c, and twenty-five of this chapter:
(1) Any minimum wager, maximum wager, days during which games may be played, or currency denominations accepted by any mechanical or electronic bill acceptors as imposed by articles twenty-two-a, twenty-two-c and twenty-five of this chapter or by any West Virginia legislative rule are repealed.
(2) Subject to the approval of the commission, each racetrack and gaming facility licensee shall, with respect to video lottery, authorized games of chance, and table games, the following:
(A) Maximum and minimum wagers;
(B) Advertising and promotional activities;
(C) Hours of operation;
(D) The days during which games may be played; and
(E) Currency denominations accepted by any mechanical or electronic bill acceptors.
(3) The commission may consider multiple factors, including, but not limited to, industry standards, outside competition, and any other factor as determined by the commission to be relevant in its decision to approve a racetrack or a gaming facility's determination of those items listed in subdivision (2), subsection (b) of this section.
(c)
Setting of operations. -- Notwithstanding anything to the contrary contained elsewhere in this chapter, the commission may establish the following parameters for commission regulated lottery games of any kind which is played at a licensed gaming facility:
(1) Minimum and maximum payout percentages;
(2) Any probability limits of obtaining the maximum payout for a particular play; and
(3) Limitations on the types and amounts of financial transactions, including extension of credit to a patron, which a gaming facility can enter into with its patrons.
(d)
Posting of betting limits. -- A gaming facility shall conspicuously post a sign at each authorized game of chance indicating the permissible minimum and maximum wagers pertaining at that table. A gaming facility licensee may not require any wager to be greater than the stated minimum or less than the state maximum. However, any wager actually made by a patron and not rejected by a gaming facility licensee prior to the commencement of play shall be treated as a valid wager.
§29-25-20. Accounting and reporting of gross terminal income; distribution of net terminal income.
The licensed gaming facility shall submit fifty-three thirty-ix percent of the gross terminal income from video lottery games at the licensed gaming facility to the commission through electronic funds transfer to be deposited into the Historic Resort Hotel Fund created in twenty-two of this article. The licensed gaming facility shall also submit seventeen percent of the gross terminal income from video lottery games at the licensed gaming facility to the commission through electronic funds transfer to be deposited into the Human Resource Benefit Fund created in section twenty-two-a of this article. Each of these submissions shall be made to the commission weekly. The gaming licensee shall furnish to the commission all information and bank authorizations required to facilitate the timely transfer of moneys to the commission. The gaming licensee shall provide the commission thirty days' advance notice of any proposed account changes in order to assure the uninterrupted electronic transfer of funds.
§29-25-21. Taxes on games other than video lottery games.
(a) Imposition and rate of limited gaming profits tax. -- There is hereby levied and shall be collected a privilege tax against a gaming license in an amount to be determined by the application of the rate against adjusted gross receipts of the licensed gaming facility. The rate of tax is thirty-seven thirty- five percent. Of that thirty-five percent, thirty percent shall be directly deposited by the commission into the Historic Resort Hotel Fund created in section twenty-two of this article, and the remaining five percent shall be directly deposited by the commission into the Human Resource Benefit Fund created in section twenty-two-a of this article. For purposes of calculating the amount of tax due under this section, the licensee shall use the accrual method of accounting. This tax is in addition to all other taxes and fees imposed:Provided, That the consumers sales and services tax imposed pursuant to article fifteen, chapter eleven of this code may not apply to the proceeds from any wagering with respect to an authorized game of chance pursuant to this article. (b) Computation and payment of tax. --The taxes levied under the provisions of this section are due and payable to the commission in monthly weekly installments on or before the twenty- first day Wednesday of the month each week. following the month in which the tax is accrued The taxpayer shall, on or before the twenty-first day Wednesday of each month week make out and mail submit by electronic communication to the commission a return for the preceding month week, in the form prescribed by the commission, showing: (1) The total gross receipts from the gaming facility for that month and the adjusted gross receipts; (2) the amount of tax for which the taxpayer is liable; and (3) any further information necessary in the computation and collection of the tax which the Tax Commissioner or the commission may require. Payment of the amount of tax due must accompany the return. All payments made pursuant to this section shall be deposited in the state gaming fund accordance with sections twenty-two and twenty-two-a of this chapter. Payments due to the commission under this section and payments due to the commission under section twenty of this chapter shall be sent simultaneously.
(c) Negative Adjusted gross receipts. -- When adjusted gross receipts for a week is a negative number because the winnings paid to patrons wagering on the gaming facility's authorized games of chance exceeds the gaming facility's gross receipts from the purchase of table game tokens, chips or electronic media by patrons, the commission shall allow the licensee to, pursuant to rules of the commission, carry over the negative amount of adjusted gross receipts to returns filed for subsequent weeks. The negative amount of adjusted gross receipts may not be carried back to an earlier week and the commission is not required to refund any tax received by the commission, except when the licensee surrenders its license to act as agent of the commission in operating authorized games of chance under this article and the licensee's last return filed under this section shows negative adjusted gross receipts. In that case, the commission shall multiply the amount of negative adjusted gross receipts by the applicable rate of tax and pay the amount to the licensee, in accordance with rules of the commission.
(c) (d) Prohibition on credits. -- Notwithstanding any other provision of this code to the contrary, no credits may be allowed against any tax imposed on any taxpayer by this code for an investment in gaming devices and supplies, for an investment in real property which would be directly utilized for the operation of a gaming facility or for any jobs created at a gaming facility. Notwithstanding any other provision of this code to the contrary, the tax imposed by this section may not be added to federal taxable income in determining West Virginia taxable income of a taxpayer for purposed of article twenty-four, chapter eleven of this code.
(e) Tax imposed by this section is in lieu of other taxes. --
(1) With the exception of the ad valorem property tax collected under chapter eleven-a of this code, the tax imposed by this section is in lieu of all other state taxes and fees imposed on the operation of, or the proceeds from operation of authorized games of chance, except as otherwise provided in this section. The consumers sales and services tax imposed pursuant to article fifteen, chapter eleven of this code, shall not apply to the licensee's gross receipts from any wagering on authorized games of chance pursuant to this article or to the licensee's purchasing of gaming equipment, supplies or services directly used in operation of the games of chance authorized by this article. These purchases are also exempt from the use tax imposed by article fifteen-a, chapter eleven of this code.
(2) With the exception of the ad valorem property tax collected under chapter eleven-a of this code, the tax imposed by this section is in lieu of all local taxes and fees levied on or imposed with respect to the privilege of offering authorized games of chance to the public, including, but not limited to, the municipal business and occupation taxes and amusement taxes authorized by article thirteen, chapter eight of this code, and the municipal sales and service tax and use taxes authorized by article thirteen-c, chapter eight of this code.
§29-25-22. Historic resort hotel fund; allocation of adjusted gross receipts.

(a) There is hereby created a special fund in the State Treasury which shall be designated and known as the "state gaming Historic Resort Hotel Fund." All revenues received from licenses and applicants under this article, all Thirty-six percent of the gross terminal income received by the commission under section twenty of this article and all tax revenues from the tax imposed thirty percent of the adjusted gross receipts received by the commission under section twenty-one of this article shall be deposited with the State Treasurer and placed in the state gaming Historic Resort Hotel Fund. The fund shall be an interest bearing account with interest to be credited to and deposited in the state gaming Historic Resort Hotel Fund.
(b) All expenses of the commission shall be paid from the state gaming Historic Resort Hotel Fund, including reimbursement of the State Police for activities performed at the request of the commission in connection with background investigations or enforcement activities pursuant to this article. At no time may the commission's expenses under this article exceed fifteen percent of the total of the annual revenue received from the licensee under this article, including all license fees, taxes or other amounts required to be deposited in the state gaming Historic Resort Hotel Fund.
(c) The balance of the state gaming Historic Resort Hotel Fund shall become net income and shall be divided as follows:
(1) Eighty-nine Sixty-four percent of the state gaming Historic Resort Hotel Fund net income shall be paid into the General Revenue Fund to be appropriated by the Legislature;
(2) Twenty percent of the Historic Resort Hotel Fund net income shall be paid into the debt reduction fund established in section twenty-seven, article twenty-two-c of this chapter to be appropriated by the Legislature;
(2) (3) The Tourism Promotion Fund established in section nine, article one, chapter five-b of this code shall receive three percent of the state gaming Historic Resort Hotel Fund net income;
(3) (4) The county where the gaming facility is located shall receive four percent of the state gaming Historic Resort Hotel Fund net income;
(4) (5) The municipality where the gaming facility is located or the municipality closest to the gaming facility by paved road access as of the effective date of the reenactment of this section by the 2009 Regular Session of the Legislature shall receive two and one-half percent of the state gaming Historic Resort Hotel Fund net income; and
(5) (6) The municipalities within the county where the gaming facility is located, except for the municipality receiving funds under subdivision (4) (5) of this subsection, shall receive equal shares of two and one-half percent of the state gaming Historic Resort Hotel Fund net income;
(7) Each county commission in the state that is not eligible to receive a distribution under subdivision four of this subsection, shall receive equal shares of two and one-half percent of the Historic Resort Hotel Fund net income: Provided, That funds transferred to county commission under this subdivision shall be used only to pay regional jail expenses and the costs of infrastructure improvements and other capital improvements; and
(8) Each governing body of each municipality in the state that is not eligible to receive a distribution under subdivisions five and six of this subsection, shall receive equal shares of two and one-half percent of the Historic Resort Hotel Fund net income
: Provided, That funds transferred to municipalities under this subdivision shall be used only to pay for debt reduction in municipal police and fire pension funds and the costs of infrastructure improvements and other capital improvements.
(d) Notwithstanding any provision of this article to the contrary, all limited gaming facility license fees and license renewal fees received by the commission pursuant to section nine of this article shall be deposited into the Community Based Service Fund which was created in subdivision two, subsection (a), section twenty-seven, article twenty-two-c, chapter twenty-nine of this code.
(e) With the exception of the license fees and license renewal fees received by the commission pursuant to section nine of this article, all revenues received from licensees and license applicants under this article shall be retained by the commission as reimbursement for the licensing process.
§29-25-22a. Human Resource Benefit Fund.
(a) There is hereby created a special fund in the State Treasury which shall be designated and known as the "Human Resource Benefit Fund." Seventeen percent of the gross terminal income received by the commission under section twenty of this article and five percent of the adjusted gross receipts received by the commission under section twenty-one of this article shall be deposited with the State Treasurer and placed in the Human Resource Benefit Fund. The fund shall be an interest bearing account with interest to be credited to and deposited in the Human Resource Benefit Fund.
(b) For each dollar expended by the historic resort hotel licensee for fringe benefits for the employees of the historic resort hotel licensee, the historic resort hotel licensee shall receive one dollar in recoupment from the Human Resource Benefit Fund
: Provided, That the historic resort hotel licensee is not entitled to recoupment for money spent on fringe benefits beyond the amount of money available to be expended from the Human Resource Benefit Fund at the time the request for recoupment is made by the historic resort hotel licensee.
(c) The commission shall have full rights and powers to audit the spending of money from the Human Resource Benefit Fund to ensure that the money is being used in the manner prescribed under this section. The commission shall have the power and authority to audit as frequently as it sees fit, so long as it conducts at least two audits each fiscal year.
(d) There is herein created the "Human Resource Benefit Advisory Board", which shall meet every six months to verify the commission's audit.
(1) The board shall consist of five members, all residents and citizens of the State of West Virginia:
(A) One member shall be an employee representative elected by the majority of the employees of the historic resort hotel licensee;
(B) One member shall be a representative of the historic resort hotel licensee; and
(C) Three members shall be employees of the commission.
(2) The members shall be appointed or elected by the entity or persons that they represent. Establishment of terms for members shall be determined by the entity or persons that they represent, if the entity or persons choose to set terms.
(3) A majority of members constitutes a quorum for the transaction of business.
(4) The board shall meet every six months at the headquarters of the commission. Upon its own motion or upon the request of the commission, it may hold meetings in addition to the required meetings. The commission shall pay the travel expenses of members of the board who are not employed by the commission.
(5) All meetings of the board shall be open to the public.
(6) The board shall operate in an advisory capacity. Its functions shall include, but are not limited to, reviewing and verifying financial audits of the Human Resource Benefit Fund conducted by the commission and its employees, and reviewing source documents associated with disbursements from the Human Resource Benefit Fund.
(7) Within thirty days of any board meeting, the board shall report to the commission its findings and any recommendations it may have. The report to the commission shall be made at a commission meeting that is open to the public.
(e) In the event that an audit conducted by the commission, or suggested changes to the audit submitted by the board and adopted by the commission, reveals that the historic resort hotel licensee has acted improperly or negligently in its claim for money from the Human Resource Benefit Fund, the commission may impose a civil penalty against the historic resort hotel licensee of up to one hundred percent of the improperly claimed amount. Any civil penalty imposed on the historic resort hotel licensee by the commission under this subsection shall be deposited by the commission into the Historic Resort Hotel Fund.
§29-25-23. Prohibition on unauthorized wagering; complimentary service, gift, cash or other item.
(a) A gaming licensee may not permit any form of wagering except as authorized under this article, or articles twenty-two, twenty-two-a, or twenty-two-c of this chapter.
(b) A gaming licensee may receive wagers only from an individual present in a licensed gaming facility.
(c) All gaming facility operations must utilize a cashless wagering system whereby all players' money is converted to tokens, paper vouchers, electronic cards or chips at the request of the wagerer which can only be used for wagering in a licensed gaming facility, and wagering may not be conducted with money or other negotiable currency:
(1) Wagering on authorized games of chance may not be conducted with money or other negotiable currency or with tokens, electronic cards or other electronic media or chips not issued by the gaming facility where the games of chance will be played.
(2) At the request of the player, the licensee shall convert a player's tokens, electronic cards or other electronic media or chips back to money.
(3) The licensee may not charge a fee for converting a player's money to an acceptable media for play a game of chance or charge a fee for converting the acceptable media for wagering a game of chance back to money.
(d) The gaming licensee is prohibited from offering any complimentary service, gift, cash or other item of value to any person unless: property or service, other than incidental food and beverages, to any person as an inducement to participate in a game of chance. This prohibition includes the offering of complimentary or discounted rooms in exchange for a guest participating in any game of chance at the gaming facility.
(1) The complimentary consists of room, food, beverage or entertainment expenses provided directly to the patron and his or her guests by the gaming facility licensee or indirectly to the patron and his or her guests on behalf of the licensee by a third party;
(2) The complimentary consists of documented transportation expenses provided directly to the patron and his or her guests on behalf of a gaming facility licensee by a third party
: Provided, That the licensee complies with the rules promulgated by the commission to ensure that a patron's and his or her guests' documented transportation expenses are paid for or reimbursed only once; or
(3) The complimentary consists of coins, tokens, cash or other complimentary items or services provided through any complimentary distribution program, the terms of which shall be filed with the commission upon implementation of the program or maintained pursuant to commission rule. Any change in the terms of a complimentary program shall be filed with the commission upon implementation of the change.
(e) Notwithstanding any provision of subsection (d) of this section to the contrary, a gaming facility licensee may offer and provide complimentary cash or noncash gifts that are not otherwise included in that subsection to any person
: Provided, That any complimentary cash or noncash gifts in excess of an amount per trip to be set by interpretive rule of the commission, are supported by documentation regarding the reason the gift was provided to the patron and his or her guests, including where applicable a patron's player rating. The documentation shall be maintained by a gaming facility licensee in accordance with commission rules. For purposes of this subsection, all gifts presented to a patron and a patron's guests directly by the gaming facility licensee or indirectly on behalf of the licensee by a third party within any five-day period shall be considered to have been made during a single trip.
§29-25-24. Individual gaming restrictions.
(a) An individual may not enter a designated gaming facility area or remain in a designated gaming facility to participate in authorized games of chance area if the individual:
(1) Is not a;
(A) A registered overnight guest at the historic resort hotel on whose premises the gaming facility is located;
(B) A person who is not a registered overnight guest, but is a registered participant at a convention or event:
Provided, That the historic resort hotel has met ninety percent of its available room capacity; or
(C) Member of a home owner or facility association that entitles members to substantial privileges at the historic resort hotel on whose premises the gaming facility is located or an overnight guest of such a member
: Provided, That the association was in existence as of April 1, 2009;
(2) Is under the age of twenty-one years;
(3) Is visibly intoxicated;
(4) Is determined by the gaming facility operator or the commission to be unruly, disruptive or otherwise interfering with operation of the gaming facility; or to be likely to commit, or to attempt to commit a violation of this article; or
(5) Has been barred by the commission from entering a gaming facility.
(b) Notwithstanding any provisions of this code to the contrary, no employee of the commission or employee of the historic resort hotel or any member of his or her immediate household may wager at the gaming facility.
§29-25-25. Offenses and penalties.
(a) A gaming licensee is guilty of unlawful operation of a game of chance when:
(1) The licensee operates a game of chance or places a video lottery game or video lottery terminal in any location other than a gaming facility that is not a designated gaming area approved by the commission;
(2) The licensee acts, or employs another person to act, as if he or she is not an agent or employee of the licensee in order a shill or decoy to encourage participation in a game of chance in a gaming facility;
(3) The licensee knowingly permits an individual under the age of twenty-one years of age to enter or remain in a gaming facility for the purpose of making a wager designated gaming area or to play video lottery terminals or authorized games of chance at a licensed gaming facility; or
(4) The licensee exchanges tokens, chips or other forms of credit to be used for wagering in a gaming facility for anything of value except in exchange for money or credits to a player's account;
(5) The licensee operates a game of chance or places a video lottery game or video lottery terminal into play without authority of the commission to do so;
(6) The licensee knowingly conducts, carries on, operates or exposes for play or allows to be conducted, carried on, operated or exposed for play any game of chance, video lottery game, video lottery terminal or other device, equipment or material that has in any manner been tampered with or placed in a condition or operated in a manner, the result of which is designed to deceive the public; or
(7) The licensee employs an individual in a position or to perform duties, for which a license is required by this article or rules of the commission and the employee does not have a license issued under the provisions of this article or the licensee continues to employ the individual in a position or to perform duties, for which a license is required by this article or rules of the commission, after the employee's license expired, was revoked by the commission or not renewed by the commission.
(b) A person is guilty of a misdemeanor when:
(1) The person operates, carries on or exposes for play an authorized game of chance prior to obtaining a license or after the person's license has expired and prior to actual renewal of the license or before the authorized game of chance and the licensee's rules for play for the game are approved or modified and approved by the commission;
(2) The person works or is employed in a position requiring a license under the provisions of this article without having the license required by this article;
(3) A licensee who possesses any video lottery terminal or other device, equipment or material which the person knows has been manufactured, distributed, sold, tampered with or serviced in violation of the provisions of this article;
(4) A licensee who knowingly conducts, carries on, operates or exposes for play, or allows to be conducted, carried on, operated or exposed for play any video lottery game, video lottery terminal, or other device, equipment or material which has in any manner been tampered with, or placed in a condition, or operated in a manner, the result of which tends to deceive the public or tends to alter the normal random selection of characteristics or the normal random selection of characteristics or the normal chance of the video lottery game.
(b) (c) A person is guilty of felonious wager a felony when:
(1) The person offers, promises or gives anything of value or benefit to a person who is connected has an ownership or financial interest in, is employed by or has a service contract with, a gaming facility or to that person's spouse or any dependent child or dependent parent, pursuant to an agreement or arrangement, in fact or implied from the circumstances, or with intent that the promise or thing of value or benefit will influence the actions of the person to whom the offer, promise, or gift was made in order to affect or attempt to affect the outcome of an authorized game of chance, or to influence official action of the commission. For the purposes of this subdivision and subdivision (2) of this subsection, the term "person who is connected with a gaming facility" includes, but is not limited to, a person licensed under this article as well as an officer or employee of a licensee;
(2) The person solicits or knowingly accepts or receives a promise of anything of value or benefit while the person is connected with a gaming facility, pursuant to an understanding or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to affect or attempt to affect the outcome of an authorized game of chance, or to influence official action of the commission;
(3) The person uses or possesses on property owned by the licensed gaming facility or on property contiguous to the gaming facility, with the intent to use, an electronic, electrical or mechanical a device that is designed, constructed or programmed to assist the user or another person:
(A) In projecting the outcome of an authorized game of chance;
(B) In keeping track of cards played dealt or in play;
(C) In analyzing the probability of the occurrence of an event relating to an authorized game of chance; or
(D) In analyzing the strategy for playing or betting to be used in an authorized game of chance, except as permitted in writing by the commission; or
(E) In obtaining an advantage at playing any authorized game of chance at a licensed gaming facility authorized under this article to operate authorized games of chance.
(4) The person cheats at an authorized game of chance in a gaming facility;
(5) The person manufacturers, sells, or distributed any cards, chips, dice, game or device which is intended to be used to violate any provision of this article or the table gaming laws of any other state;
(6) The person instructs a person in cheating or in the use of a device for that purpose with the knowledge or intent that the information or use conveyed may be employed to violate any provision of the article;
(7) The person places a bet after acquiring knowledge, not available to all players, of the outcome of the game of chance which is the subject of the bet, or aids a person in acquiring the knowledge for the purpose of placing a bet contingent on that outcome;
(8) The person claims, collects, takes or attempts to claim, collect, or take, money or anything of value into or from a gaming facility, with intent to defraud, without having made a wager contingent on winning a game of chance, or claims, collects, or takes an amount of money or thing of value or greater value than the amount won;
(9) The person knowingly uses chips, electronic media or tokens that are counterfeit chips or tokens to place a wager in a gaming facility;
(10) The person knowingly uses any medium other than chips, tokens or other methods of credit approved by the commission to place a wager in a gaming facility;
(11) The person, not a gaming licensee or employee or agent of a gaming licensee gaming facility licensed under this article acting in furtherance of the gaming licensee's interests, has in his or her possession on grounds owned by the gaming facility licensed under this article or on grounds contiguous to the gaming facility, any device, by whatever name called, intended to be used to violate a provision of this article or a rule of the commission implementing or explaining a provision of this article; or
(12) The person, not a gaming licensee or agent of a gaming licensee acting in furtherance of the gaming licensee's interests, has in his or her possession any key or device designed for the purpose of opening, entering, or affecting the operation of an authorized game of chance, drop box or an electronic or mechanical device connected with or used in connection with an authorized games of chance in a gaming facility or for removing coins, tokens, chips or other contents therefrom.
(c) (d) Any person who violates the provisions of subsection (a) or (b) of this section is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000 or confined in a county or regional jail for not more than and confined in jail for not more than six months, except that in the case of a person other than a natural person, the amount of the fine imposed may not be more than $25,000.
(d) (e) Any person who violates the provisions of subsection (b) (c) of this section is guilty or a felony and, upon conviction thereof, shall be fined not less than $5,000 nor more than $10,000 and committed to the department of corrections of a definite a state correctional facility for a term of imprisonment of not less than one year nor more than five years.
(f) With regard to subdivision (3), subsection (c) of this section, the gaming facility licensee shall post notice of this prohibition and the penalties of this section in a manner determined by the commission.
§29-25-26. Forfeiture of property.
(a) Anything of value, including all traceable proceeds including, but not limited to, real and personal property, moneys negotiable instruments, securities and conveyances, is subject to forfeiture to the State of West Virginia if the item was used for any of the following:
(1) As a bribe intended to affect the outcome of an authorized game of chance in a gaming facility; or
(2) In exchange for or to facilitate a violation of this article.
(b) The Legislature finds and declares that the seizure and sale of items under the provisions of this section is not contemplated to be a forfeiture as that term is used in Section 5, Article XII of the Constitution of West Virginia, and, to the extent that a seizure and sale may be found to be such a forfeiture, the Legislature hereby finds and declares that the proceeds from a seizure and sale under this article are not part of net proceeds as it is contemplated by Section five, Article XII of the Constitution of West Virginia.
(b) (c) Subsection (a) of this section does not apply if the act or omission which would give rise to the forfeiture was committed or omitted without knowledge or consent of the owner of the property to be forfeited.
§29-25-28. Specific provision for video lottery and slot machines games.
The commission is authorized to implement and operate slot machines and video lottery games at one gaming facility in this state in accordance with the provisions of this article and the applicable provisions of article twenty-two of this chapter. The provisions of article twenty-two of this chapter apply to this article, except in the event of conflict or inconsistency between any of the provisions of this article and the provisions of article twenty-two of this chapter. In that event, the provisions of this article shall supersede any conflicting or inconsistent provisions contained in article twenty-two of this chapter.
§29-25-29. Video lottery terminal requirements; application for approval of a slot machine or video lottery terminal; testing of video lottery terminals; report of test results; modifications to previously approved models; conformity to prototype; seizure and destruction of terminals.

(a) Video lottery terminals registered with and approved by the commission for use at the gaming facility may offer video lottery games regulated, controlled, owned and operated by the commission in accordance with the provisions of this section, and utilizing specific game rules.
(b) A manufacturer may not sell or lease a video lottery terminal for placement at the gaming facility unless the terminal has been approved by the commission. Only manufacturers with licenses may apply for approval of a video lottery terminal or associated equipment. The manufacturer shall submit two copies of terminal illustrations, schematics, block diagrams, circuit analysis, technical and operation manuals and any other information requested by the commission for the purpose of analyzing and testing the video lottery terminal or associated equipment.
(c) The commission may require that two working models of a video lottery terminal be transported to the location designated by the commission for testing, examination and analysis.
(1) The manufacturer shall pay all costs of testing, examination, analysis and transportation of such video lottery terminal models. The testing, examination and analysis of any video lottery terminal model may require dismantling of the terminal and some tests may result in damage or destruction to one or more electronic components of such terminal model. The commission may require that the manufacturer provide specialized equipment or pay for the services of an independent technical expert to test the terminal.
(2) The manufacturer shall pay the cost of transportation of two video lottery terminals to lottery headquarters. The commission shall conduct an acceptance test to determine terminal functions and central system compatibility. If the video lottery terminal fails the acceptance test conducted by the commission, the manufacturer shall make all modifications required by the commission.
(d) After each test has been completed, the commission shall provide the terminal manufacturer with a report containing findings, conclusions and pass/fail results. The report may contain recommendations for video lottery terminal modification to bring the terminal into compliance with the provisions of this article. Prior to approving a particular terminal model, the commission may require a trial period not in excess of sixty days for a licensed gaming facility to test the terminal. During the trial period, the manufacturer may not make any modifications to the terminal model unless such modifications are approved by the commission.
(e) The video lottery terminal manufacturer and licensed gaming facility are jointly responsible for the assembly and installation of all video lottery terminals and associated equipment. The manufacturer and licensed gaming facility shall not change the assembly or operational functions of a terminal licensed for placement in West Virginia unless a request for modification of an existing video terminal prototype is approved by the commission. The request must contain a detailed description of the type of change, the reasons for the change and technical documentation of the change.
(f) Each video lottery terminal approved for placement at the gaming facility must conform to the exact specifications of the video lottery terminal prototype tested and approved by the commission. If any video lottery terminal or any video lottery terminal modification, which has not been approved by the commission, is supplied by a manufacturer and operated by the gaming facility, the commission shall seize and destroy all of that licensed gaming facility's and manufacturer's noncomplying video lottery terminals and shall suspend the license and permit of the licensed gaming facility and manufacturer.
§29-25-30. Video lottery terminal hardware and software requirements; hardware specifications; software requirements for randomness testing; software requirements for percentage payout; software requirements for continuation of video lottery game after malfunction; software requirements for play transaction records.

(a) The commission may approve video lottery terminals and in doing so shall take into account advancements in computer technology, competition from nearby states and the preservation of jobs at the historic resort hotel. In approving video lottery terminals licensed for placement in this state the commission shall insure that the terminals meet the following hardware specifications: (1) Electrical and mechanical parts and design principles may not subject a player to physical hazards or injury. (2) A surge protector shall be installed on the electrical power supply line to each video lottery terminal. A battery or equivalent power back-up for the electronic meters shall be capable of maintaining accuracy of all accounting records and terminal status reports for a period of one hundred eighty days after power is disconnected from the terminal. The power back-up device shall be located within the locked logic board compartment of the video lottery terminal.
(3) An on/off switch which controls the electrical current used in the operation of the terminal shall be located in an accessible place within the interior of the video lottery terminal. (4) The operation of each video lottery terminal may not be adversely affected by any static discharge or other electromagnetic interference.
(5) A bill or voucher acceptor or other means accurately and efficiently to establish credits shall be installed on each video lottery terminal. All acceptors must be approved by the commission prior to use on any video lottery terminal in this state. (6) Access to the interior of video lottery terminal shall be controlled through a series of locks and seals. (7) The main logic boards and all erasable programmable read- only memory chips (Eproms) are deemed to be owned by the commission and shall be located in a separate locked and sealed area within the video lottery terminal.
(8) The cash compartment shall be located in a separate locked area within or attached to the video lottery terminal. (9) No hardware switches, jumpers, wire posts or any other means of manipulation may be installed which alter the pay tables or payout percentages in the operation of a game. Hardware switches on a video lottery terminal to control the terminal's graphic routines, speed of play, sound and other purely cosmetic features may be approved by the commission.
(10) Each video lottery terminal shall contain a single printing mechanism capable of printing an original ticket and capturing and retaining an electronic copy of the ticket data as approved by the commission: Provided, That such printing mechanism is optional on any video lottery terminal which is designed and equipped exclusively for coin or token payouts. The following information shall be recorded on the ticket when credits accrued on a video lottery terminal are redeemed for cash:
(i) The number of credits accrued;
(ii) Value of the credits in dollars and cents displayed in both numeric and written form;
(iii) Time of day and date;
(iv) Validation number; and
(v) Any other information required by the commission. (11) A permanently installed and affixed identification plate shall appear on the exterior of each video lottery terminal and the following information shall be on the plate:
(i) Manufacturer of the video lottery terminal;
(ii) Serial number of the terminal; and
(iii) Model number of the terminal.
(12) The rules of play for each game shall be displayed on the video lottery terminal face or screen. The commission may reject any rules of play which are incomplete, confusing, misleading or inconsistent with game rules approved by the commission. For each video lottery game, there shall be a display detailing the credits awarded for the occurrence of each possible winning combination of numbers or symbols. All information required by this subdivision shall be displayed under glass or another transparent substance. No stickers or other removable devices may be placed on the video lottery terminal screen or face without the prior approval of the commission. (13) Communication equipment and devices shall be installed to enable each video lottery terminal to communicate with the commission's central computer system by use of a communications protocol provided by the commission to each permitted manufacturer, which protocol shall include information retrieval and terminal activation and disable programs, and the commission may require each licensed racetrack to pay the cost of a central site computer as a part of the licensing requirement.
(14) All video lottery terminals shall have a security system which temporarily disables the gaming function of the terminal while opened.
(b) Each video lottery terminal shall have a random number generator to determine randomly the occurrence of each specific symbol or number used in video lottery games. A selection process is random if it meets the following statistical criteria:
(1) Chi-square test. -- Each symbol or number shall satisfy the ninety-nine percent confidence limit using the standard chi-square statistical analysis of the difference between the expected result and the observed result.
(2) Runs test. -- Each symbol or number may not produce a significant statistic with regard to producing patterns of occurrences. Each symbol or number is random if it meets the ninety- nine percent confidence level with regard to the "runs test" for the existence of recurring patterns within a set of data. (3) Correlation test. -- Each pair of symbols or numbers is random if it meets the ninety-nine percent confidence level using standard correlation analysis to determine whether each symbol or number is independently chosen without regard to another symbol or number within a single game play.
(4) Serial correlation test. -- Each symbol or number is random if it meets the ninety-nine percent confidence level using standard serial correlation analysis to determine whether each symbol or number is independently chosen without reference to the same symbol or number in a previous game.
(c) Each video lottery terminal shall pay out no less than eighty percent and no more than ninety-nine percent of the amount wagered. The theoretical payout percentage will be determined using standard methods of probability theory.
(d) Each video lottery terminal shall be capable of continuing the current game with all current game features after a video lottery terminal malfunction is cleared. If a video lottery terminal is rendered totally inoperable during game play, the current wager and all credits appearing on the video lottery terminal screen prior to the malfunction shall be returned to the player.
(e) Each video lottery terminal shall at all times maintain electronic accounting regardless of whether the terminal is being supplied with electrical power. Each meter shall be capable of maintaining a total of no less than eight digits in length for each type of data required. The electronic meters shall record the following information:
(1) Number of coins inserted by players or the coin equivalent if a bill acceptor is being used or tokens or vouchers are used;
(2) Number of credits wagered;
(3) Number of total credits, coins and tokens won;
(4) Number of credits paid out by a printed ticket;
(5) Number of coins or tokens won, if applicable;
(6) Number of times the logic area was accessed;
(7) Number of times the cash door was accessed;
(8) Number of credits wagered in the current game;
(9) Number of credits won in the last complete video lottery game; and
(10) Number of cumulative credits representing money inserted by a player and credits for video lottery games won, but not collected.
(f) No video lottery terminal may have any mechanism which allows the electronic accounting meters to clear automatically. Electronic accounting meters may not be cleared without the prior approval of the commission. Both before and after any electronic accounting meter is cleared, all meter readings shall be recorded in the presence of a commission employee.
(g) The primary responsibility for the control and regulation of any video lottery games and video lottery terminals operated pursuant to this article rests with the commission.
(h) The commission shall directly or through a contract with a third party vendor other than the video lottery licensee, maintain a central site system of monitoring the lottery terminals, utilizing an on-line or dial-up inquiry. The central site system shall be capable of monitoring the operation of each video lottery game or video lottery terminal operating pursuant to this article and, at the direction of the director, immediately disable and cause not to operate, any video lottery game and video lottery terminal. As provided in this section, the commission may require the licensed racetrack to pay the cost of a central site computer as part of the licensing requirement.
§29-25-31. The specific video lottery duties required of the gaming facility.
The gaming facility licensee shall:
(a) Acquire video lottery terminals by purchase, lease or other assignment and provide a secure location for the placement, operation and play of the video lottery terminals;
(b) Pay for the installation and operation of commission approved telephone lines to provide direct dial up or on-line communication between each video lottery terminal and the commission's central control computer;
(c) Permit no person to tamper with or interfere with the operation of any video lottery terminal;
(d) Ensure that any telephone lines from the commission's central control computer to the video lottery terminals located at the licensed gaming facility are at all times connected and prevent any person from tampering or interfering with the operation of the telephone lines;
(e) Ensure that video lottery terminals are within the sight and control of designated employees of the license gaming facility;
(f) Ensure that video lottery terminals are placed and remain placed in the specific locations within the gaming facility that have been approved by the commission. No video lottery terminal or terminals at the gaming facility shall be relocated without the prior approval of the commission;
(g) Monitor video lottery terminals to prevent access to or play by persons who are under the age of twenty-one years or who are visibly intoxicated;
(h) Maintain at all times sufficient change and cash in the denominations accepted by the video lottery terminals;
(i) Provide no access by a player to an automated teller machine (ATM) in the area of the gaming facility where video lottery games are played;
(j) Pay for all credits won upon presentment of a valid winning video lottery ticket;
(k) Report promptly to the manufacturer and the commission all video lottery terminal malfunctions and notify the commission of the failure of a manufacturer or service technician to provide prompt service and repair of such terminals and associated equipment;
(l) Install, post and display prominently at locations within or about the licensed gaming facility, signs, redemption information and other promotional material as required by the commission; and
(m) Promptly notify the commission in writing of any breaks or tears to any logic unit seals.
§29-25-32. Surcharge; Capital Reinvestment Fund.
(a) For all fiscal years beginning on or after July 1, 2009, there shall be imposed a surcharge of ten percent against the share of gross terminal income retained by the gaming facility as provided by section twenty of this article.
(b) A Capital Reinvestment Fund is hereby created within the lottery fund. The surcharge amount attributable to the gaming facility shall be retained by the commission and deposited into a separate capital reinvestment account for the gaming facility. For each dollar expended by the gaming facility for capital improvements at the gaming facility, of any amenity associated with the licensed gaming facility's destination resort facility operations, or at adjacent facilities owned by the licensee having a useful life of seven or more years and placed in service after April 1, 2009, the licensed gaming facility shall receive one dollar in recoupment from its Capital Reinvestment Fund account: If a licensed gaming facility's unrecouped capital improvements exceed its Capital Reinvestment Fund account at the end of any fiscal year, the excess improvements may be carried forward to seven subsequent fiscal years.
(c) Any moneys remaining in the gaming facility's Capital Reinvestment Fund account at the end of any fiscal year shall be deposited in the Historic Resort Hotel Fund.
§29-25-33. License to be a provider of management services.
(a) License. -- The commission may issue a license to a person providing management services under a management services contract to a gaming facility when the commission determines that the person meets the requirements of this section and any applicable rules of the commission.
(b) License qualifications. -- Each applicant who is an individual and each individual who controls and applicant, as provided in subsection (f) section two of this article, shall be of good moral character, honesty and integrity and shall have the necessary experience and financial ability to successfully carry out the functions of a management services provider. The commission may adopt rules establishing additional requirements for an authorized management services provider. The commission may accept licensing by another jurisdiction, specifically determined by the commission to have similar licensing requirements, as evidence the applicant meets authorized management services provider licensing requirements.
(c) Management service provider specifications. -- An applicant for a license to provide management services to a gaming facility licensee shall demonstrate that the management services that the applicant plans to offer to the gaming facility licensee conform or will conform to standards established by rules of the commission and applicable state law.
(d) License application requirements. -- An applicant for a license to provide management services to a gaming facility licensee shall:
(1) Submit an application to the commission in the form required by the commission including adequate information to serve as a basis for a thorough background check;
(2) Submit 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; and
(3) Pay to the commission a nonrefundable application fee for deposit into the Historic Resort Hotel Fund in the amount of $100 to be retained by the commission as reimbursement for the licensing process. This fee may be paid on behalf of the applicant by the employer.
(e) Authorization. -- A license to provide management services to a gaming facility licensee authorizes the licensee to provide management service to a gaming facility while the licensee is active. The commission may by rule establish the conditions which constitute an emergency under which the commission may issue provisional licenses pending completion of final action on an application.
(f) Fees, expiration date and renewal. -- A licensed provider of management services shall pay to the commission an annual license fee of $100 for an initial term beginning prior to the date of the provider's first contract with a gaming facility licensee and continuing through the end of the twelfth month thereafter whenever the licensee has paid the renewal fee and has continued to comply with all applicable statutory and rule requirements. The commission shall renew a license to provide management services to a gaming facility annually thereafter. A gaming facility licensee may continue to use the management services provided by the management services provider while that provider was licensed, notwithstanding the expiration of the provider's license, unless the commission finds the services provided are not conforming to standards established by rule of the commission and applicable state law.
§29-25-34. State ownership of games of chance.
All authorized games of chance by this article shall be West Virginia lottery games owned by the State of West Virginia. A gaming facility license granted to a historic resort hotel by the commission pursuant to this article shall include the transfer by the commission to the historic resort hotel limited license rights in and to the commission's intellectual property ownership of the West Virginia lottery games which includes granting licensees limited lawful authority relating to the conduct of lottery table games for consideration, within the terms and conditions established pursuant to this article and any rules promulgated under this article.
§29-25-35. Preemption.
No local law or rule providing any penalty, disability, restriction, regulation or prohibition for operating a historic resort hotel with authorized games of change or supplying a licensed gaming facility may be enacted, and the provisions of this article preempt all regulations, rules, ordinances and laws of any county or municipality in conflict with this article.
§29-25-36. Exemption from federal law.
Pursuant to section 2 of chapter 1194, 64 Stat. 1134, 15 U.S.C. §1172, approved January 2, 1951, the State of West Virginia, acting by and through duly elected and qualified members of the Legislature, does declare and proclaim that the state is exempt from chapter 1194, 64 Stat. 1134, 15 U.S.C. §1171 to §1178.
§29-25-37. Game rules of play; disputes.
(a) As an agent of the commission authorized to operate games of chance, the gaming facility licensee shall have written rules of play for each authorized game of chance it operates that are approved by the commission before the game of chance is offered to the public. Rules of play proposed by the gaming facility may be approved, amended or rejected by the commission.
(b) All authorized games of chance shall be conducted according to the specific rules of play approved by the commission. All wagers and pay-offs of winning wagers shall be made according to those rules of play, which shall establish any limitations necessary to assure the vitality of games of chance operations.
(c) The gaming facility licensee shall make available in printed form to any patron, upon request of the patron, the complete texts of the rules of play of any authorized game of chance in operation at the gaming facility, pay-offs of winning wagers and any other advice to the player required by the commission.
(d) Patrons are considered to have agreed that the determination of whether the patron is a valid winner is subject to the game of play rules and, in the case of any dispute, will be determined by the commission. The determination by the commission shall be final and binding upon all patrons and shall not be subject to further review or appeal.
§29-25-38. Shipment of gambling devices.
All shipments of gambling devices, including video lottery machines, to the licensed gaming facility in this state, the registering, recording, and labeling of which have been completed by the manufacturer or dealer thereof in accordance with Chapter 1194, 64 Stat. 1134, 15 U.S.C. §1171 to §1178, are legal shipments of gambling devices into the State of West Virginia.
NOTE: The purpose of this bill is to update article twenty-five, chapter twenty-nine of this code, in order to achieve conformity between the operations of video lottery and authorized games of chance at the historic resort hotel and the operations of video lottery and table games at the pari-mutuel racetracks licensed under section one, article twenty-two-a, chapter twenty-nine, et seq. and section one, article twenty-two-c, chapter twenty-nine, et seq. The bill also changes the distribution of net gaming receipts from gaming at a historic resort hotel to be more parallel to the distribution for licensed racetracks. The bill establishes a Human Resource Benefit Fund to benefit all employees of the historic resort hotel licensee. State revenues from both types of venues would come from the application of identical percentages to the video lottery and table game income.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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