COMMITTEE SUBSTITUTE
FOR
H. B. 2668
(By Mr. Speaker, Mr. Kiss, and Delegates Clements,
Laird, Facemyer, L. White, Beane and Martin)
(Originating in the Committee on Finance)
[March 28, 1997]
A BILL to amend and reenact sections ten and sixteen, article
twenty-two, chapter twenty-nine of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating to
lottery sales agents; providing for an increase in lottery
sales agent commissions; and providing for payment of the
increased commissions from unclaimed prize funds.
Be it enacted by the Legislature of West Virginia:
That sections ten and sixteen, article twenty-two, chapter
twenty-nine of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 22. STATE LOTTERY ACT.
§29-22-10. Licensed lottery sales agents; restrictions; annual
license and fee; factors; application; bond; age;
nonassignable license; organizations qualified;
commissions; display of license; geographic distribution; monopoly prohibited; lottery
retailers; preprinted instant type lottery tickets;
fee; certificate of authority; security; bond.
(a) The commission shall
promulgate rules and regulations
propose rules for legislative approval in accordance with the
provisions of article three, chapter twenty-nine-a of this code,
for the licensing of lottery sales agents for the sale and
dispensing of lottery tickets, materials and lottery games, and the
operations of electronic computer terminals therefor, subject to
the following:
(1) The commission shall issue its annual license to
such the
lottery sales agents for each lottery outlet and for such fee as
is established by the commission to cover its costs thereof, but
not to exceed one thousand dollars. Application for licensing as
a lottery sales agent shall be on forms to be prescribed and
furnished by the director.
(2) No licensee may engage in business exclusively as a
lottery sales agent.
(3) The commission shall ensure geographic distribution of
lottery sales agents throughout the state.
(4) Before issuance of a license to an applicant, the
commission shall consider factors such as the financial
responsibility, security, background, accessibility of the place of
business or activity to the public, public convenience and the volume of expected sales.
(5) No person under the age of twenty-one may be licensed as
an agent. No licensed agent
shall may employ any person under the
age of eighteen for sales or dispensing of lottery tickets or
materials or operation of a lottery terminal.
(6) A license is valid only for the premises stated thereon.
(7) The director may issue a temporary license when
deemed
determined necessary.
(8) A license is not assignable or transferable.
(9) Before a license is issued, an agent shall be bonded for
an amount and in the form and manner to be determined by the
director, or shall provide such other security, in an amount, form
and manner determined by the director, as will ensure the
performance of the agent's duties and responsibilities as a
licensed lottery agent or the indemnification of the commission.
(10) The commission may issue licenses to any legitimate
business, organization, person or entity, including, but not
limited to, civic or fraternal organizations; parks and recreation
commissions or similar authorities; senior citizen centers, state- owned stores, persons lawfully engaged in nongovernmental business
on state property, persons lawfully engaged in the sale of
alcoholic beverages; political subdivisions or their agencies or
departments, state agencies, commission-operated agencies; persons
licensed under the provisions of article twenty-three, chapter nineteen of this code, and religious, charitable or seasonal
businesses.
(11) Licensed lottery sales agents shall receive
five six and
one-quarter percent of gross sales as commission for the
performance of their duties:
Provided, That a portion of the
commission not to exceed one and one-quarter percent of gross sales
may be paid from unclaimed prize moneys accumulated under section
sixteen of this article. In addition, the commission may
promulgate a bonus-incentive plan as additional compensation not to
exceed one percent of annual gross sales. The method and time of
payment shall be determined by the commission.
(12) Licensed lottery sales agents shall prominently display
the license on the premises where lottery sales are made.
(13) No person or entity or subsidiary, agent or subcontractor
thereof
shall may receive or hold more than twenty-five percent of
the licenses to act as licensed lottery sales agent in any one
county or municipality nor more than five percent of the licenses
issued throughout this state:
Provided, That the limitations of
twenty-five percent and five percent in this subdivision
shall do
not apply if it is determined by the commission that there are not
a sufficient number of qualified applicants for licenses to comply
with these requirements.
(b) The commission shall
promulgate rules and regulations
propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code,
specifying the terms and conditions for contracting with lottery
retailers for sale of preprinted instant type lottery tickets and
may provide for the dispensing of such tickets through machines and
devices. Tickets may be sold or dispensed in any public or private
store, operation or organization, without limitation. The
commission may establish an annual fee not to exceed fifty dollars
for such persons, per location or site, and shall issue a
certificate of authority to act as a lottery retailer to such
persons. The commission shall establish procedures to ensure the
security, honesty and integrity of the lottery and distribution
system. The commission shall establish the method of payment,
commission structure, methods of payment of winners, including
payment in merchandise and tickets, and may require prepayment by
lottery retailers, require bond or security for payment and require
deposit of receipts in accounts established therefor. Retailers
shall prominently display the certificate of authority issued by
the commission on the premises where lottery sales are made.
§29-22-16. Disposition of unclaimed prize money.
Unclaimed prize money for the prize on a winning ticket shall
be retained by the director for the person entitled thereto for one
hundred eighty days after the drawing in which the prize was won or
for one hundred eighty days after the announced end of a game. If
no claim is made for said money within one hundred eighty days, the prize money reverts to the state lottery fund for the purposes of
paying a portion of the sales commission to lottery sales agents
pursuant to section ten of this article or for awarding additional
prizes. The commission shall promulgate rules for the awarding of
awarding additional prizes.
NOTE: The purpose of this bill is to increase lottery sales
agent commissions, with the increase may be paid from unclaimed
prize funds.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.