Enrolled Version - Final Version
House Bill 3029 History
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ENROLLED
H. B. 3029
(By Delegates Michael, Doyle, Leach, Campbell, Kelley,
Proudfoot and Miller )
[Passed March 13, 1999; in effect ninety days from passage.]
AN ACT to
amend and reenact sections two and five, article four,
chapter five-a of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to amend and reenact
section three, article one, chapter twenty-nine of said
code; to amend and reenact sections three, six, ten, and
thirteen article twenty-two-a of said chapter; and to
further amend said article by adding a new section,
designated section nineteen, all relating to distribution of
proceeds from net terminal income of racetrack video lottery
proceeds; creating a capitol dome and capitol improvements
fund; eliminating the morris square repair fund; creating
the grants for competitive arts program fund; providing that
a portion of the net terminal income from racetrack video
lottery be deposited into the created funds; relating to the
operation of video lottery games at licensed horse and dog
racetracks; redefining certain terms; authorizing lottery
commission to approve video lottery terminals and in doing
so requiring that certain matters be taken into consideration; modifying requirement that printing
mechanisms be contained in video lottery terminals in
certain circumstances; approving changes in video lottery
terminals; permitting winnings to be paid by non-cash
prizes, annuitized payments over time, coins, vouchers or
tokens in connection with video lottery games; permitting
the display of actual symbols on video lottery terminals;
requiring electronic accounting meter in video lottery
terminals that record use of coins and tokens; and dividing
certain amounts of net terminal income between counties and
certain municipalities; and creation of compulsive gambling
treatment fund; source of funding; criteria for distribution
of funding; and reports to the Legislature operation of
video lottery games at licensed horse and dog racetracks;
redefining certain terms; authorizing lottery commission to
approve video lottery terminals and in doing so requiring
that certain matters be taken into consideration; modifying
requirement that printing mechanisms be contained in video
lottery terminals in certain circumstances; approving
changes in video lottery terminals; permitting winnings to
be paid by non-cash prizes, annuitized payments over time,
coins, vouchers or tokens in connection with video lottery
games; permitting the display of actual symbols on video
lottery terminals; requiring electronic accounting meter in
video lottery terminals that record use of coins and tokens;
and dividing certain amounts of net terminal income between counties and certain municipalities; and creation of
compulsive gambling treatment fund; source of funding;
criteria for distribution of funding; and reports to the
Legislature."
Be it enacted by the Legislature of West Virginia:
That sections two and five, article four, chapter five-a of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted; that section three, article
one, chapter twenty-nine of said code be amended and reenacted;
and that sections three, six, ten, and thirteen, article twenty- two-a of said chapter be amended and reenacted; and that said
article be further amended by adding thereto a new section
designated section nineteen, all to read as follows:
ARTICLE 4. GENERAL SERVICES DIVISION.
§5A-4-2. Care, control and custody of capitol buildings and grounds.
(a) The director has the full responsibility for the care,
control and custody of the capitol buildings and in this
connection he or she shall:
(1) Furnish janitorial services, which are to be provided by
employees of the department of administration for the main
capitol building, including east and west wings, together with
all the departments in the building, or connected with the
building, regardless of the budget or budgets, departmental or
otherwise, from which the janitorial services are paid, and shall
furnish janitorial supplies, light, heat and ventilation for all
the rooms and corridors of the buildings: Provided, That nothing
in this section shall be construed to prohibit contracts for janitorial services with sheltered workshops. The president of
the Senate and speaker of the House of Delegates, or their
respective designees, have charge of the halls and committee
rooms of their respective houses and any other quarters at the
state capitol provided for the use of the Legislature or its
staff, and shall keep the areas properly cleaned, warmed and in
good order, and shall do and perform any other duties in relation
to the areas as either house may require;
(2) Landscape and take care of the lawns and gardens; and
(3) Direct the making of all minor repairs to and
alterations of the capitol buildings and governor's mansion and
the grounds of the buildings and mansion. Major repairs and
alterations shall be made under the supervision of the director,
subject to the direction of the secretary.
(b) The offices of the assistants and employees appointed to
perform these duties shall be located where designated by the
secretary, except that they shall not be located in any of the
legislative chambers, offices, rooms or halls. Office hours
shall be arranged so that emergency or telephone service is
available at all times. The hours shall be arranged so that
janitorial service shall not interfere with other employment
during regular office hours.
(c) There is created in the state treasury a special revenue
account to be named the "capitol dome and capitol improvements
fund." The fund shall consist of moneys received under section
ten, article twenty-two-a, chapter twenty-nine of this code and
funds from any other source. Moneys in the fund shall be
expended for maintenance and repairs of the capitol dome and other capital improvements and repairs to state-owned buildings.
§5A-4-5. Regulation of parking on state-owned property in
Charleston; construction of parking garage for general
public; penalties; jurisdiction; creation of funds.
(a) It is the intent of the Legislature to provide a parking
facility for the general public and to direct the secretary of
the department of administration to plan and construct a parking
garage at the state capitol complex that will provide sufficient
and additional parking for the general public.
(b) The secretary may regulate the parking of motor vehicles
in accordance with the provisions of this section with regard to
the following state-owned property in the city of Charleston,
Kanawha County:
(1) The east side of Greenbrier street between Kanawha
boulevard and Washington street, east;
(2) The west side of California avenue between Kanawha
boulevard and Washington street, east;
(3) Upon the state-owned grounds upon which state office
building no. 3 is located;
(4) Upon the state-owned grounds which state office building
no. 4, 112 California avenue, is located;
(5) In the state-owned parking garage at 212 California
avenue and upon the state-owned grounds upon which such parking
garage is located;
(6) Upon the state-owned property at Michigan avenue and
Virginia terrace; and
(7) Upon any other property now or hereafter owned by the
state and used for parking purposes in conjunction with the state capitol or state office buildings numbers three and four,
including the Laidley field complex: Provided, That the
secretary shall present to the joint committee on government and
finance for its suggestions, on or before the first day of July,
one thousand nine hundred ninety-eight, plans for the
construction of a state capitol parking garage to be constructed,
on property owned by the state or to be purchased by the state,
no later than the thirtieth day of June, one thousand nine
hundred ninety-nine. The submitted plans shall include proposals
for general public parking, including the estimated use and cost;
relocation of parking for official state vehicles; and state
employee parking, including the estimated use and cost.
(c) The secretary shall propose rules for promulgation
respecting parking and to allocate parking spaces to public
officers and employees of the state upon all of the property set
forth in subsection (a) of this section: Provided, That during
sessions of the Legislature, including regular, extended,
extraordinary and interim sessions, parking on the east side of
Greenbrier street between Kanawha boulevard and Washington
street, east, in the science and culture center parking lot, on
the north side of Kanawha boulevard between Greenbrier street and
California avenue, and on the west side of California avenue
between Kanawha boulevard and Washington street, east, is subject
to rules promulgated jointly by the speaker of the House of
Delegates and the president of the Senate. Any person parking
any vehicle contrary to the rules promulgated under authority of
this subsection is subject to a fine of not less than one dollar
nor more than twenty-five dollars for each offense. In addition, the secretary or the Legislature, as the case may be, may cause
the removal at owner expense of any vehicle that is parked in
violation of the rules. Magistrates in Kanawha County have
jurisdiction of all the offenses.
(d) The secretary may employ the persons as may be necessary
to enforce the parking rules promulgated under the provisions of
this section.
(e) There is created in the department of administration a
special fund to be named the "Parking Garage Fund" in which shall
be deposited funds that are appropriated and funds from other
sources to be used for the construction and maintenance of a
parking garage on the state capitol complex.
ARTICLE 1. DIVISION OF CULTURE AND HISTORY.
§29-1-3. Commission on the arts.
(a) The commission on the arts is continued and shall be
composed of fifteen appointed members.
(b)(1) The governor shall appoint, by and with the advice
and consent of the Senate, the members of the commission for
staggered terms of three years. A person appointed to fill a
vacancy shall be appointed only for the remainder of that term.
(2) No more than eight members may be of the same political
party. Members of the commission shall be appointed so as to
fairly represent both sexes, the ethnic and cultural diversity of
the state and the geographic regions of the state.
(3) The commission shall elect one of its members as chair. It shall meet at the times specified by the chair. Notice of
each meeting shall be given to each member by the chair in
compliance with the open meetings laws of the state. A majority
of the members constitute a quorum for the transaction of
business. The director of the arts section shall be an ex
officio nonvoting member of the commission and shall serve as
secretary. The director or a majority of the members may also
call a meeting upon notice as provided in this section.
(4) Each member or ex officio member of the commission shall
serve without compensation, but shall be reimbursed for all
reasonable and necessary expenses actually incurred in the
performance of the duties of the office; except that in the event
the expenses are paid, or are to be paid, by a third party, the
member or ex officio member, as the case may be, shall not be
reimbursed by the state.
(5) Upon recommendation of the commissioner, the governor
may also appoint those officers of the state that are appropriate
to serve on the commission as ex officio nonvoting members.
(c) The commission has the following powers:
(1) To advise the commissioner and the director of the arts
section concerning the accomplishment of the purposes of that
section and to establish a state plan with respect to the arts
section;
(2) To approve and distribute grants-in-aid and awards from
federal and state funds relating to the purposes of the arts
section;
(3) To request, accept or expend federal funds to accomplish
the purposes of the arts section when federal law or regulations
would prohibit the same by the commissioner or section director,
but would permit the same to be done by the commission on the
arts;
(4) To otherwise encourage and promote the purposes of the
arts section;
(5) To approve rules concerning the professional policies
and functions of the section as promulgated by the director of
the arts section; and
(6) To advise and consent to the appointment of the director
by the commissioner.
(d) There is created in the state treasury a special revenue
account to be named the "grants for competitive arts program
fund." The fund shall consist of moneys received under section
ten, article twenty-two-a, chapter twenty-nine of this code and
funds from any other source. Moneys in the fund shall be
expended for the grants for competitive arts program: Provided,
That the commission shall make a women's veterans memorial statue
a priority when expending the funds: Provided, however, That the
commission shall submit the plans for the statue to the secretary
of administration for his or her approval.
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) "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) "Lottery" means the public gaming systems or games
established and operated by the state lottery commission.
(p) "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) "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) "Non-cash 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) "Own" means any beneficial or proprietary interest in
any property or business of an applicant or licensed racetrack.
(t) "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 the first day of January, one thousand nine
hundred ninety-four, 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.
(u) "Permit" means authorization granted by the commission
to a person to function as either a video lottery manufacturer,
service technician or validation manager.
(v) "Person" means any natural person, corporation,
association, partnership, limited partnership, or other entity,
regardless of its form, structure or nature.
(w) "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) "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) "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) "Validation manager" means a person who holds a permit
issued by the commission and who performs video lottery ticket
redemption services.
(aa) "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 non-cash 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) "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) "Wager" means a sum of money or thing of value risked
on an uncertain occurrence.
§29-22A-6. 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 in the West Virginia pari-mutuel racing industry. 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 minimum of one electronic or mechanical coin acceptor
or other means accurately and efficiently to establish credits
shall be installed on each video lottery terminal. Each video
lottery terminal may also contain bill acceptors for one or more
of the following: One dollar bills, five dollar bills, ten
dollar bills and twenty dollar bills. All coin and bill
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
retaining an exact legible copy within the video lottery terminal
or other means of 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. A video
lottery terminal may not allow more than two dollars to be
wagered on a single game. 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 meet the following
maximum and minimum theoretical percentage payout during the
expected lifetime of said terminal:
(1) Video lottery games shall pay out no less than eighty percent and no more than ninety-five percent of the amount
wagered. The theoretical payout percentage will be determined
using standard methods of probability theory.
(2) Manufacturers must file a request and receive approval
from the commission prior to manufacturing for placement in this
state video lottery terminals programmed for a payout greater
than ninety-two percent of the amount wagered. Commission
approval must be obtained prior to applying for testing of such
high payout terminals.
(3) Each terminal shall have a probability greater than one
in seventeen million of obtaining the maximum payout for each
play.
(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.
§29-22A-10.Accounting and reporting; commission to provide
communications protocol data; distribution of net
terminal income; remittance through electronic
transfer of funds; establishment of accounts and
nonpayment penalties; commission control of
accounting for net terminal income; settlement of
accounts; manual reporting and payment may be
required; request for reports; examination of
accounts and records.
(a) The commission shall provide to manufacturers, or
applicants applying for a manufacturer's permit, the protocol
documentation data necessary to enable the respective
manufacturer's video lottery terminals to communicate with the
commission's central computer for transmitting auditing program
information and for activation and disabling of video lottery
terminals.
(b) The gross terminal income of a licensed racetrack shall
be remitted to the commission through the electronic transfer of funds. Licensed racetracks shall furnish to the commission all
information and bank authorizations required to facilitate the
timely transfer of moneys to the commission. Licensed racetracks
must provide the commission thirty days' advance notice of any
proposed account changes in order to assure the uninterrupted
electronic transfer of funds. From the gross terminal income
remitted by the licensee to the commission, the commission shall
deduct an amount sufficient to reimburse the commission for its
actual costs and expenses incurred in administering racetrack
video lottery at the licensed racetrack, and the resulting amount
after such deduction shall be the net terminal income. The
amount deducted for administrative costs and expenses of the
commission may not exceed four percent of gross terminal income.
(c) Net terminal income shall be divided as set out in this
subsection. The licensed racetrack's share shall be in lieu of
all lottery agent commissions and is considered to cover all
costs and expenses required to be expended by the licensed
racetrack in connection with video lottery operations. The
division shall be made as follows:
(1) The commission shall receive thirty percent of net
terminal income, which shall be paid into the general revenue
fund of the state to be appropriated by the Legislature;
(2) Fourteen percent of net terminal income at a licensed
racetrack shall be deposited in the special fund established by
the licensee, and used for payment of regular purses in addition
to other amounts provided for in article twenty-three, chapter nineteen of this code;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income: Provided,
That (A) beginning the first day of July, one thousand nine
hundred ninety-nine, and thereafter, any amount in excess of the
two percent received during fiscal year one thousand nine hundred
ninety-nine by a county in which a racetrack is located that has
participated in the West Virginia thoroughbred development fund
since on or before the first day of January, one thousand nine
hundred ninety-nine shall be divided as follows:
(i) The county shall receive fifty percent of the excess
amount; and
(ii) The municipalities of the county shall receive fifty
percent of the excess amount, said fifty percent to be divided
among the municipalities on a per capita basis as determined by
the most recent decennial United States census of population; and
(B) Beginning the first day of July, one thousand nine
hundred ninety-nine, and thereafter, any amount in excess of the
two percent received during fiscal year one thousand nine hundred
ninety-nine by a county in which a racetrack other than a
racetrack described in paragraph (A) of this proviso is located
and where the racetrack has been located in a municipality within
the county since on or before the first day of January, one
thousand nine hundred ninety-nine, shall be divided, if
applicable, as follows:
(i) The county shall receive fifty percent of the excess amount; and
(ii) The municipality shall receive fifty percent of the
excess amount; and
(C) This proviso shall not affect the amount to be received
under this subdivision by any county other than a county
described in paragraph (A) or (B) of this proviso;
(4) One half of one percent of net terminal income shall be
paid for and on behalf of all employees of the licensed racing
association by making a deposit into a special fund to be
established by the racing commission to be used for payment into
the pension plan for all employees of the licensed racing
association;
(5) The West Virginia thoroughbred development fund created
under section thirteen-b, article twenty-three, chapter nineteen
of this code and the West Virginia greyhound breeding development
fund created under section ten, article twenty-three, chapter
nineteen of this code shall receive an equal share of a total of
not less than one and one-half percent of the net terminal
income: Provided, That for any racetrack which does not have a
breeder's program supported by the thoroughbred development fund
or the greyhound breeding development fund, the one and one-half
percent provided for in this subdivision shall be deposited in
the special fund established by the licensee and used for payment
of regular purses, in addition to other amounts provided for in
subdivision (2) of this subsection and article twenty-three,
chapter nineteen of this code;
(6) The West Virginia thoroughbred breeders classic shall
receive one percent of the net terminal income which shall be
used for purses. The moneys shall be deposited in the separate
account established for the classic under section thirteen,
article twenty-three, chapter nineteen of this code;
(7) A licensee shall receive forty-seven percent of net
terminal income;
(8) The tourism promotion fund established in section nine,
article one, chapter five-b of this code shall receive three
percent of the net terminal income; and
(9) The veterans memorial program shall receive one percent
of the net terminal income until sufficient moneys have been
received to complete the veterans memorial on the grounds of the
state capitol complex in Charleston, West Virginia. The moneys
shall be deposited in the state treasury in the division of
culture and history special fund created under section three,
article one-i, chapter twenty-nine of this code: Provided, That
only after sufficient moneys have been deposited in the fund to
complete the veterans memorial and to pay in full the annual
bonded indebtedness on the veterans memorial, not more than
twenty thousand dollars of the one percent of net terminal income
provided for in this subdivision shall be deposited into a
special revenue fund in the state treasury, to be known as the
"John F. 'Jack' Bennett Fund". The moneys in this fund shall be
expended by the division of veterans affairs to provide for the
placement of markers for the graves of veterans in perpetual cemeteries in this state. The division of veterans affairs shall
promulgate legislative rules pursuant to the provisions of
article three, chapter twenty-nine-a of this code specifying the
manner in which the funds are spent, determine the ability of the
surviving spouse to pay for the placement of the marker, and
setting forth the standards to be used to determine the priority
in which the veterans grave markers will be placed in the event
that there are not sufficient funds to complete the placement of
veterans grave markers in any one year, or at all. Upon payment
in full of the bonded indebtedness on the veteran's memorial, one
hundred thousand dollars of the one percent of net terminal
income provided for in this subdivision shall be deposited in the
special fund in the division of culture and history created under
section three, article one-i, chapter twenty-nine of this code
and be expended by the division of culture and history to
establish a West Virginia veterans memorial archives within the
cultural center to serve as a repository for the documents and
records pertaining to the veterans memorial, to restore and
maintain the monuments and memorial on the capitol grounds, and
not more than twenty thousand dollars be deposited in the "John
F. 'Jack' Bennett Fund": Provided, however, That five hundred
thousand dollars of the one percent of net terminal income shall
be deposited in the state treasury in a special fund of the
department of administration, created under section five, article
four, chapter five-a of this code to be used for construction and
maintenance of a parking garage on the state capitol complex: Provided further, That the remainder of the one percent of net
terminal income shall be deposited in equal amounts in the
capitol dome and improvements fund created under section two,
article four, chapter five-a of this code and the grants for
competitive arts program fund created under section three article
one, chapter twenty-nine of this code.
(d) Each licensed racetrack shall maintain in its account an
amount equal to or greater than the gross terminal income from
its operation of video lottery machines, to be electronically
transferred by the commission on dates established by the
commission. Upon a licensed racetrack's failure to maintain this
balance, the commission may disable all of a licensed racetrack's
video lottery terminals until full payment of all amounts due is
made. Interest shall accrue on any unpaid balance at a rate
consistent with the amount charged for state income tax
delinquency under chapter eleven of this code, which interest
shall begin to accrue on the date payment is due to the
commission.
(e) The commission's central control computer shall keep
accurate records of all income generated by each video lottery
terminal. The commission shall prepare and mail to the licensed
racetrack a statement reflecting the gross terminal income
generated by the licensee's video lottery terminals. Each
licensed racetrack must report to the commission any
discrepancies between the commission's statement and each
terminal's mechanical and electronic meter readings. The licensed racetrack is solely responsible for resolving income
discrepancies between actual money collected and the amount shown
on the accounting meters or on the commission's billing
statement.
(f) Until an accounting discrepancy is resolved in favor of
the licensed racetrack, the commission may make no credit
adjustments. For any video lottery terminal reflecting a
discrepancy, the licensed racetrack shall submit to the
commission the maintenance log which includes current mechanical
meter readings and the audit ticket which contains electronic
meter readings generated by the terminal's software. If the
meter readings and the commission's records cannot be reconciled,
final disposition of the matter shall be determined by the
commission. Any accounting discrepancies which cannot be
otherwise resolved shall be resolved in favor of the commission.
(g) Licensed racetracks shall remit payment by mail if the
electronic transfer of funds is not operational or the commission
notifies licensed racetracks that remittance by this method is
required. The licensed racetracks shall report an amount equal
to the total amount of cash inserted into each video lottery
terminal operated by a licensee, minus the total value of game
credits which are cleared from the video lottery terminal in
exchange for winning redemption tickets, and remit such amount as
generated from its terminals during the reporting period. The
remittance shall be sealed in a properly addressed and stamped
envelope and deposited in the United States mail no later than noon on the day when the payment would otherwise be completed
through electronic funds transfer.
(h) Licensed racetracks may, upon request, receive
additional reports of play transactions for their respective
video lottery terminals and other marketing information not
considered confidential by the commission. The commission may
charge a reasonable fee for the cost of producing and mailing any
report other than the billing statements.
(i) The commission has the right to examine all accounts,
bank accounts, financial statements and records in a licensed
racetrack's possession, under its control or in which it has an
interest and the licensed racetrack must authorize all third
parties in possession or in control of the accounts or records to
allow examination of any of those accounts or records by the
commission.
§29-22A-13. Payment of credits; no state liability; method of
payment; restrictions on payment of credits;
redeemed tickets required to be defaced;
liability for video lottery terminal
malfunction.
(a) No payment for credits awarded on a video lottery
terminal may be made unless the ticket meets the following
requirements:
(1) The ticket is fully legible and printed on paper
approved by the commission and the ticket contains all
information required by this article;
(2) The ticket is not mutilated, altered, unreadable or
tampered with in any manner;
(3) The ticket is not counterfeit, in whole or in part; and
(4) The ticket is presented by a person authorized to play
video lottery pursuant to this article.
(b) Each licensed racetrack shall designate validation
managers and employees authorized to redeem tickets and to sell
and redeem tokens during the business hours of operation.
Credits shall be immediately paid in cash, by check, by
annuitized payments over time or in the form of a non-cash prize,
when a player presents a valid ticket for payment.
(c) Licensed racetracks shall not redeem tickets for credits
awarded on video lottery terminals which are not located on its
premises. A ticket must be presented for payment no later than
ten days after the date the ticket is printed. The commission is
not liable for the payment of any video lottery ticket credits.
(d) All tickets redeemed by a licensed racetrack shall be
defaced in a manner which prevents any subsequent presentment and
payment.
(e) The commission is not responsible for any video lottery
terminal malfunction which causes a credit to be wrongfully
awarded or denied to players. The licensed racetrack is solely
responsible for any wrongful award or denial of credits.
§29-22A-19. Compulsive gambling treatment fund.
There is hereby created and established a separate special
account to be known as the "Compulsive Gambling Treatment Fund". Such fund shall be appropriated from the commission's
administrative expense account and shall be not less than one
hundred fifty thousand dollars nor more than five hundred
thousand dollars per fiscal year, as determined by the
commission, to provide funds for compulsive gambling treatment
programs in the state.
The department of health & human resources shall develop
criteria which a treatment program for compulsive gamblers must
meet in order to become eligible for a grant from the funds made
available for such treatment programs pursuant to this provision.
The department, in conjunction with the commission, shall develop
a formula for the distribution of available funds which will
result in an equitable distribution among programs submitted
which meet the eligibility criteria for grants as developed by
the department.
The Commission shall report annually to the Legislature the
number and amounts of grants distributed and the number of people
served by such programs.
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