Senate Bill No. 675
(By Senator Sypolt)
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[Introduced March 23, 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 §29-22A-3 of the Code of West
Virginia, 1931, as amended, relating to definitions
applicable to racetrack video lottery; defining "horse
rescue league"; authorizing the construction and operation
of a pari-mutuel horse racing facility in northeastern West
Virginia; designating said facility as a horse-themed park;
requiring said facility to have certain amenities; and
establishing a date certain for the beginning of
construction to maintain licensure.
Be it enacted by the Legislature of West Virginia:
That §29-22A-3 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-3. Definitions.
As used in this article:
(a) "Applicant" means any person applying for any video
lottery license or permit.
(b) "Associated equipment" means any hardware located on a
licensed racetrack's premises which is connected to the video
lottery system for the purpose of performing communication,
validation or other functions, but not including the video
lottery terminals or the communication facilities of a regulated
public utility.
(c) "Background investigation" means a security, criminal
and credit investigation of a person, as defined in this section,
who has applied for a video lottery license or permit, or who has
been granted a video lottery license or permit.
(d) "Central computer," "central control computer" or
"central site system" means any central site computer provided to
and controlled by the commission to which video lottery terminals
communicate for purposes of information retrieval and terminal
activation and to disable programs.
(e) "Commission" or "state Lottery Commission" means the
West Virginia Lottery Commission created by article twenty-two of
this chapter.
(f) "Control" means the authority to direct the management
and policies of an applicant or a license or permit holder.
(g) "Costs" means the expenses incurred by the commission in
the testing and examination of video lottery terminals and the
performance of background investigations and other related
activities which are charged to and collected from applicants or license or permit holders.
(h) "Director" means the individual appointed by the
Governor to provide management and administration necessary to
direct the state lottery office.
(I) "Disable" or "terminal disable" means the process of
executing a shutdown command from the central control computer
which causes video lottery terminals to cease functioning.
(j) "Display" means the visual presentation of video lottery
game features on a video lottery terminal in the form of video
images, actual symbols or both.
(k) "EPROM" and "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 which can also be in the form of CD-ROM, flash RAM 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 the property of the State of
West Virginia.
(l) "Floor attendant" means a person, employed by a licensed
racetrack, who holds a permit issued by the commission and who
corrects paper jams and bill jams in video lottery terminals and
also provides courtesy services for video lottery players.
(m) "Gross terminal income" means the total amount of cash,
vouchers or tokens inserted into the video lottery terminals
operated by a licensee, 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.
(n) "Horse rescue league" means a nonprofit organization for
the purpose of rescuing, rehabilitating and retraining race and
performance horses.
(n) (o) "License" or "video lottery license" means
authorization granted by the commission to a racetrack which is
licensed by the West Virginia Racing Commission to conduct
thoroughbred or greyhound racing meetings pursuant to article
twenty-three, chapter nineteen of this code permitting the
racetrack to operate video lottery terminals authorized by the
commission.
(o) (p) "Lottery" means the public gaming systems or games
established and operated by the state Lottery Commission.
(p) (q) "Manufacturer" means any person holding a permit
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 racetrack in West Virginia, and who contracts directly
with the licensee for the sale, lease or other assignment to a
licensed racetrack in West Virginia.
(q) (r) "Net terminal income" means gross terminal income minus an amount deducted by the commission to reimburse the
commission for its actual costs of administering racetrack video
lottery at the licensed racetrack. 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) (s) "Noncash prize" means merchandise which a video
lottery player may be given the option to receive in lieu of cash
in exchange for a winning redemption ticket and which shall be
assigned a redemption value equal to the actual cost of the
merchandise to the licensed racetrack.
(s) (t) "Own" means any beneficial or proprietary interest
in any property or business of an applicant or licensed
racetrack.
(t) (u) "Pari-mutuel racing facility," "licensed racetrack,"
"racetrack" or "track" means a facility where horse or dog race
meetings are held and the pari-mutuel system of wagering is
authorized pursuant to the provisions of article twenty-three,
chapter nineteen of this code:
Provided, That, for the purposes
of this article, "pari-mutuel racing facility," "licensed
racetrack," "racetrack" or "track" includes only a facility which
was licensed prior to January 1, 1994, to hold horse or dog race
meetings, and which conducts not less than two hundred twenty
live racing dates for each horse or dog race meeting or such
other number of live racing dates as may be approved by the
Racing Commission in accordance with the provisions of section
twelve-b, article twenty-three, chapter nineteen of this code.
Also, a facility located in Northern Preston County, West
Virginia, designated as a "horse theme park," which shall include
at a minimum, the following elements that will be enclosed by a
structure, not less than seven stories in height: An oval
racetrack dedicated primarily to the racing and showing of
thoroughbred horses, quarter horses, and other horse breeds, show
arenas, veterinary clinic and hotel rooms, retail shopping areas,
amusement park, water park, museums, a horse rescue league and
may have a kindergarten through twelfth grade school and daycare
facility: Provided, That, the amendments to this section enacted
during the 2009 regular session of the Legislature shall only
have effect if construction of the structure of at least seven
stories is undertaken and ongoing within one year of the
effective date of said amendments: Provided, however, That
actual completion of the project is required for the 2009
amendments to remain in effect.
(u) (v) "Permit" means authorization granted by the
commission to a person to function as either a video lottery
manufacturer, service technician or validation manager.
(v) (w) "Person" means any natural person, corporation,
association, partnership, limited partnership, or other entity,
regardless of its form, structure or nature.
(w) (x) "Player" means a person who plays a video lottery
game on a video lottery terminal at a racetrack licensed by the commission to conduct video lottery games.
(x) (y) "Service technician" means a person, employed by a
licensed racetrack, who holds a permit issued by the commission
and who performs service, maintenance and repair on licensed
video lottery terminals in this state.
(y) (z) "Video lottery game" 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 coins, currency,
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 credit 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 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.
(z) (aa) "Validation manager" means a person who holds a
permit issued by the commission and who performs video lottery
ticket redemption services.
(aa) (bb) "Video lottery" means a lottery which allows a
game to be played utilizing an electronic computer and an
interactive computer terminal device, equipped with a video
screen and keys, a keyboard or other equipment allowing input by
an individual player, into which the player inserts coins,
currency, vouchers or tokens as consideration in order for play
to be available, and through which terminal device the player may
receive free games, coins, tokens or credit that can be redeemed
for cash, annuitized payments over time, a noncash prize or
nothing, as may be determined wholly or predominantly by chance.
"Video lottery" does not include a lottery game which merely
utilizes an electronic computer and a video screen to operate a
lottery game and communicate the results of the game, such as the
game "Travel," and which does not utilize an interactive
electronic terminal device allowing input by an individual
player.
(bb) (cc) "Video lottery terminal" means a
commission-approved interactive electronic terminal device which
is connected with the commission's central computer system, and
which is used for the purpose of playing video lottery games
authorized by the commission. A video lottery terminal may
simulate the play of one or more video lottery games.
(cc) (dd) "Wager" means a sum of money or thing of value
risked on an uncertain occurrence.
NOTE: The purpose of this bill is to define horse rescue
league; authorizing the construction and operation of a
pari-mutual horse racing facility in northeastern West Virginia;
designating said facility as a horse theme park; requiring said
facility to have certain amenities and establishing a date
certain for the beginning of construction to maintain licensure.