Introduced Version
Senate Bill 630 History
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Senate Bill No. 630
(By Senator Prezioso)
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[Introduced February 11, 2008; referred to the Committee on the
Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact §29-22C-8 of the Code of West Virginia,
1931, as amended, relating to
licensees to engage in
activities related to operation of West Virginia Lottery table
games at racetrack facilities; and providing qualifications
for applicant for license to operate West Virginia Lottery
table games at a racetrack facility.
Be it enacted by the Legislature of West Virginia:
That §29-22C-8 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 22C. WEST VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT.
§29-22C-8. License to operate a racetrack with West Virginia
Lottery table games.
(a) Racetrack table games licenses. -- The commission may
issue up to four racetrack table games licenses to operate West
Virginia Lottery table games in accordance with the provisions of this article. The Legislature intends that no more than four
licenses to operate a racetrack with West Virginia Lottery table
games in this state shall be permitted in any event.
(b) Grant of license. -- Upon the passage of a local option
election in a county in accordance with the provisions of section
seven of this article, the commission shall immediately grant a
West Virginia Lottery table games license, and a license for the
right to conduct West Virginia Lottery table games as assignee to
the intellectual property rights of the state, to allow the
licensee to conduct West Virginia table games at the licensed
pari-mutual racetrack identified on the local option election
ballot, provided that racetrack holds a valid racetrack video
lottery license issued by the commission pursuant to article
twenty-two-a of this chapter and a valid racing license granted by
the West Virginia Racing Commission pursuant to the provision of
article twenty-three, chapter nineteen of this code and has
otherwise met the requirements for licensure under the provisions
of this article and the rules of the commission.
(c) Location. -- A racetrack table games license authorizes
the operation of West Virginia Lottery table games on the grounds
of the particular licensed facility identified in the racetrack
video lottery license issued pursuant to article twenty-two-a and
the license to conduct horse or dog racing issued pursuant to
article twenty-three, chapter nineteen of this code.
(d) Floor plan submission requirement. -- Prior to commencing
the operation of any table games in a designated gaming area, a
racetrack table games licensee shall submit to the commission for
its approval a detailed floor plan depicting the location of the
designated gaming area in which table games gaming equipment will
be located and its proposed arrangement of the table games gaming
equipment. Any floor plan submission that satisfies the
requirements of the rules promulgated by the commission shall be
considered approved by the commission unless the racetrack table
games licensee is notified in writing to the contrary within one
month of filing a detailed floor plan.
(e) Management service contracts. --
(1) Approval. -- A racetrack table games licensee 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 West Virginia Lottery table games unless the management
service contract is: (A) 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. -- The licensed racetrack table games
licensee 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
responsibilities 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 may by rule clarify application of this subdivision and
provide exceptions to its application. 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.
(f) Coordination of licensed activities. -- In order to
coordinate various licensed activities within racetrack facilities,
the following provisions apply to licensed racetrack facilities:
(1) The provisions of this article and of article twenty-two-a
of this chapter shall be interpreted to allow West Virginia Lottery
table games and racetrack video lottery operations under those
articles to be harmoniously conducted in the same designated gaming
area.
(2) On the effective date of this article, the provisions of
section twenty-three of this article apply to all video lottery games conducted within a racetrack facility, notwithstanding any
inconsistent provisions contained in article twenty-two-a of this
chapter to the contrary.
(3) On and after the effective date of this article, vacation
of the premises after service of beverages ceases is not required,
notwithstanding to the contrary any inconsistent provisions of this
code or inconsistent rules promulgated by the Alcohol Beverage
Control Commissioner with respect to hours of sale of those
beverages, or required vacation of the premises.
(g) Fees, expiration date and renewal. --
(1) An initial racetrack table games license fee of one
million five hundred thousand dollars shall be paid to the
commission at the time of issuance of the racetrack table games
license, regardless of the number of months remaining in the
license year for which it is issued. All licenses expire at the
end of the day on the thirtieth day of June each year. A license
shall be required prior to the racetrack beginning the process of
converting the facility to accommodate table games. This would
require a license prior to the racetrack obtaining architectural
renderings for expansion, required soil testing, any necessary
inspections, facility remodeling or any type of construction or
action which is necessary for the racetrack to prepare for the
conversion to table games. Failure of the racetrack to obtain the
necessary license prior to proceeding with planning for table game conversion shall result in the licensing fee being set at three
million dollars.
(2) The commission shall annually renew a racetrack table
games license as of the first day of July of each year provided the
licensee:
(A) Successfully renews its racetrack video lottery license
under article twenty-two-a of this chapter before the first day of
July;
(B) Pays to the commission the annual license renewal fee of
two million five hundred thousand dollars required by this section
at the time it files its application for renewal of its license
under article twenty-two-a of this chapter; and
(C) During the current license year, the licensee complied
with all provisions of this article, all rules adopted by the
commission and all final orders of the commission applicable to the
licensee; and
(D) Failure of any eligible racetrack to obtain a racetrack
table games license during the first twelve months following a
successful local option election shall result in the anticipated
revenue from the first annual racetrack table games license fee
being equally allocated among the racetracks who obtain a racetrack
table games license during the first twelve months following the
successful local option election. This amount shall be payable at
the time of the first annual license renewal provided in this section. The licensing fee in the second twelve months for a
racetrack that does not obtain a racetrack table games license
within the first twelve months of eligibility but does obtain a
racetrack table games license in the second twelve months following
a successful local option election shall be the aggregate of the
first two years licensing fee for a total of four million dollars.
(3) Annual license surcharge for failure to construct hotel on
premises. -- It is the intent of the Legislature that each
racetrack for which a racetrack table games license has been
issued be or become a destination tourism resort facility. To that
end, it is important that each racetrack for which a racetrack
table games license has been issued operate a hotel with
significant amenities. Therefore, in addition to all other taxes
and fees required by the provisions of this article, there is
hereby imposed, upon each racetrack for which a racetrack table
games license has been issued an annual license surcharge, payable
to the commission in the amount of two million five hundred
thousand dollars if that racetrack does not operate a hotel on its
racing property that contains at least one hundred fifty guest
rooms with significant amenities within three years of the passage
of the local option election in its county authorizing table games
at the racetrack, provided the time for completion of the hotel
shall be extended by the same number of days as the completion of
the hotel is delayed by a force majeure events or conditions beyond the reasonable control of the racetrack licensee. The surcharge
shall be paid upon each renewal of its racetrack table games
license made after the expiration of the three year period, and may
be extended by the above force majeure events or conditions, until
the racetrack opens a qualifying hotel.
(4) If the licensee fails to apply to renew its license under
article twenty-three, chapter nineteen and article twenty-two-a,
chapter twenty-nine of this code until after the license expires,
the commission shall renew its license under this article at the
time it renews its license under article twenty-two-a of this
chapter provided the licensee has paid the annual license fee
required by this section and during the preceding license year the
licensee complied with all provisions of this article, all rules
adopted by the commission and all final orders of the commission
applicable to the licensee.
(h) Facility qualifications. -- A racetrack table games
licensee shall demonstrate that the racetrack with West Virginia
Lottery table games will: (1) Be accessible to disabled
individuals in accordance with applicable federal and state laws;
(2) be licensed in accordance with this article, and all other
applicable federal, state and local laws; and (3) meet any other
qualifications specified in rules adopted by the commission.
(i) Surety bond. -- A racetrack table games licensee shall
execute a surety bond to be given to the state to guarantee the licensee faithfully makes all payments in accordance with the
provisions of this article and rules promulgated by the commission.
The surety bond shall be:
(1) In the amount 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.
(j) Authorization. -- A racetrack table games license
authorizes the licensee act as an agent of the commission in
operating an unlimited amount of West Virginia Lottery table games
while the license is active, subject to subsection (d) of this
section. A racetrack table games license is not transferable or
assignable and cannot be sold or pledged as collateral.
(k) Audits. -- When applying for a license and annually
thereafter prior to license renewal, a racetrack table games
licensee shall submit to the commission an annual audit, by a
certified public accountant, of the financial transactions and
condition of the licensee's total operations. The audit shall be made in accordance with generally accepted accounting principles
and applicable federal and state laws.
(l) Commission office space. -- A racetrack table games
licensee shall provide to the commission, at no cost to the
commission, suitable office space at the racetrack facility for the
commission to perform the duties required of it by this article and
the rules of the commission.
NOTE: The purpose of this bill is to clarify the licensing
requirements and licensing fee requirements for obtaining a
racetrack table games license.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language.
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