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Engrossed Version Senate Bill 153 History

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Key: Green = existing Code. Red = new code to be enacted


ENGROSSED

COMMITTEE SUBSTITUTE

FOR

COMMITTEE SUBSTITUTE

FOR


Senate Bill No. 153

(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)

____________

[Originating in the Committee on Finance;

reported February 26, 2003.]

____________

A BILL to amend chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article twenty-nine, relating to legal gaming; creating a division of gaming; transferring all legal gaming activities, powers, funds and functions to the division; definitions; transferring the racing commission and the lottery commission to the division; renaming the lottery commission the gaming commission; adding the regulation of all legal gaming activities, except racing activities, to the duties of the gaming commission; division's powers and duties; transition provisions; gaming director; director's powers and duties; and continuing the division.

Be it enacted by the Legislature of West Virginia:
That chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article twenty-nine, to read as follows:
ARTICLE 29. DIVISION OF GAMING.
§29-29-1. Legislative findings.
(a) The Legislature finds that dog and horse racing, the state-owned lottery, racetrack video lottery, limited video lottery games, gaming facilities, charitable bingo, charitable raffles and charitable raffle boards and games are all activities of a similar nature, are all legal gaming activities and that the people of West Virginia would be better served if these legal gaming activities were regulated by one single agency.
(b) Therefore, the Legislature hereby creates the division of gaming to regulate the following legal gaming activities in West Virginia:
(1) Horse and dog racing activities as set out under the provisions of article twenty-three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of article twenty-two-a of this chapter;
(4) Limited video lottery as set out under the provisions of article twenty-two-b of this chapter;
(5) Gaming facilities as set out under the provisions of article twenty-five of this chapter;
(6) Charitable bingo as set out under the provisions of article twenty, chapter forty-seven of this code;
(7) Charitable raffles as set out under the provisions of article twenty-one, chapter forty-seven of this code; and
(8) Charitable raffle boards and games as set out under the provisions of article twenty-three, chapter forty-seven of this code.
§29-29-2. Definitions.
As used in this article, the following words and terms have the following meanings, unless the context clearly indicates otherwise:
(a) "Director" or "gaming director" means the person who administers the division of gaming.
(b) "Division" means the division of gaming which regulates all the legal gaming activities in West Virginia.
(c) "Dog racing" means any type of dog racing, including greyhound racing, as defined in section three, article twenty- three, chapter nineteen of this code.
(d) "Gaming commission" means the seven-member commission formerly established as the lottery commission under the provisions of article twenty-two of this chapter. The gaming commission's powers and duties include the regulation of the following activities:
(1) The security, audit and other financial aspects of pari- mutuel wagering as set out under the provisions of article twenty- three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of article twenty-two-a of this chapter;
(4) Limited video lottery as set out under the provisions of article twenty-two-b of this chapter;
(5) Gaming facilities as set out under the provisions of article twenty-five of this chapter;
(6) Charitable bingo as set out under the provisions of article twenty, chapter forty-seven of this code;
(7) Charitable raffles as set out under the provisions of article twenty-one, chapter forty-seven of this code; and
(8) Charitable raffle boards and games as set out under the provisions of article twenty-three, chapter forty-seven of this code.
(e) "Horse racing" means any type of horse racing, including thoroughbred racing and harness racing, as defined in section three, article twenty-three, chapter nineteen of this code.
(f) "Legal gaming" means the following activities regulated by the division of gaming:
(1) Horse and dog racing activities as set out under the provisions of article twenty-three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of article twenty-two-a of this chapter, including the manner in which all gaming and gaming activities may be administered;
(4) Limited video lottery as set out under the provisions of article twenty-two-b of this chapter;
(5) Gaming facilities as set out under the provisions of article twenty-five of this chapter;
(6) Charitable bingo as set out under the provisions of article twenty, chapter forty-seven of this code;
(7) Charitable raffles as set out under the provisions of article twenty-one, chapter forty-seven of this code; and
(8) Charitable raffle boards and games as set out under the provisions of article twenty-three, chapter forty-seven of this code.
(g) "Lottery" means the public gaming systems or games established and operated by the division of gaming.
(h) "Lottery tickets" or "tickets" means tickets or other tangible evidence of participation used in lottery games or gaming systems.
(i) "Pari-mutuel wagering" means a form of wagering on the outcome of an event in which all wagers are pooled and held by a racing association for distribution of the total amount, less the deductions authorized by law, to holders of tickets on the winning horses or dogs.
(j) "Racing commission" means the three-member commission, whose establishment, powers and duties, except the powers relating to security, audit and other financial aspects of pari-mutuel wagering, are set out under the provisions of article twenty-three, chapter nineteen of this code.
§29-29-3. Racing commission.

On and after the first day of July, two thousand three, the racing commission, established pursuant to the provisions of article twenty-three, chapter nineteen of this code, is hereby transferred and continued as a commission in the division of gaming. The racing commission will have the same membership, powers and duties, except the powers relating to security, audit and other financial aspects of pari-mutuel wagering, as set out in article twenty-three, chapter nineteen of this code.
§29-29-4. Gaming commission.

On and after the first day of July, two thousand three, the lottery commission, established pursuant to the provisions of article twenty-two of this chapter, is hereby transferred, renamed the gaming commission and continued as a commission in the division of gaming. The gaming commission will have the same membership, powers and duties as set out in said article and will also regulate the following activities:
(1) The security, audit and other financial aspects of pari- mutuel wagering as set out under the provisions of article twenty- three, chapter nineteen of this code;
(2) The state-owned lottery as set out under the provisions of article twenty-two of this chapter;
(3) Racetrack video lottery as set out under the provisions of article twenty-two-a of this chapter;
(4) Limited video lottery as set out under the provisions of article twenty-two-b of this chapter;
(5) Gaming facilities as set out under the provisions of article twenty-five of this chapter;
(6) Charitable bingo as set out under the provisions of article twenty, chapter forty-seven of this code;
(7) Charitable raffles as set out under the provisions of article twenty-one, chapter forty-seven of this code; and
(8) Charitable raffle boards and games as set out under the provisions of article twenty-three, chapter forty-seven of this code.
§29-29-5. Division of gaming; powers and duties.
(a) Effective the first day of July, two thousand three, there is hereby created a division of gaming under the department of tax and revenue. The state lottery office, created pursuant to article twenty-two of this chapter, is hereby abolished.
(b) The division has the following powers and duties:
(1) To oversee all the legal gaming activities in West Virginia;
(2) Rule-making authority;
(3) All the powers and duties formerly held by the state lottery office pursuant to the provisions of article twenty-two of this chapter; and
(4) Perform such other duties as are needed to oversee legal gaming activities.
(c) All records, responsibilities, obligations, assets and property, of whatever kind and character, of the state lottery office, the racing commission and the lottery commission are hereby transferred to the division of gaming.
(d) The balances of all funds of the state lottery office, the racing commission and the lottery commission are transferred to the division of gaming.
(e) The division of gaming is hereby authorized to receive federal funds.
(f) The department of tax and revenue, the division of gaming, the state lottery office, the racing commission, the lottery commission and the gaming commission are authorized to undertake such actions as are reasonably required for an orderly transfer of legal gaming functions.
(g) Any commission or office transferred to the division pursuant to this article will not have their appellate or independent decision-making status affected by the enactment of this article.
§29-29-6. Transition provisions.
(a) All orders, determinations, rules, permits, grants, contracts, certificates, licenses, waivers, bonds, authorizations and privileges which have been issued, made, granted, or allowed to become effective by the governor, any state department or agency or official thereof, or by a court of competent jurisdiction, in the performance of functions which have been transferred to the director or to the division, and were in effect on the date such transfer occurred continue in effect, for the benefit of the division, according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with the law by the governor, the secretary, the director, or other authorized official, a court of competent jurisdiction, or by operation of law.
(b) Any proceedings, including notices of proposed rulemaking, or any application for any license, permit, certificate or financial assistance pending before any commission or office, functions of which were transferred to the division of gaming are not affected by the transfer. Orders issued in any such proceedings shall continue in effect until modified, terminated, superseded or revoked by the governor, the secretary, by a court of competent jurisdiction or by operation of law. Nothing in this subsection prohibits the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if the division had not been created or if functions or offices had not been transferred to the division. The creation of the division of gaming and the subsequent transfer of functions do not affect suits commenced prior to the effective date of the creation, by or against any commission, office or officer, and in all such suits, proceedings shall be had, appeals taken and judgments rendered in the same manner and with like effect as if the creation or transfer had not occurred, except that the director of the division of gaming or other officer may, in an appropriate case, be substituted or added as a party.
§29-29-7. Director.
(a) There is hereby created the position of director of the division of gaming, whose duties include the management and administration of the division of gaming. The director shall be qualified by training and experience to direct the operations of the division. No person shall be appointed director who has been convicted of a felony or crime involving moral turpitude.
(b) The director shall be appointed by the governor, by and with the advice and consent of the Senate, and shall serve at the will and pleasure of the governor. By the first day of July, two thousand three, the governor shall appoint a director. The lottery director, in office on the thirtieth day of June, two thousand three, is eligible for appointment as the director of gaming.
(c) The director serves on a full-time basis and cannot engage in any other profession or occupation.
(d) The director:
(1) Shall have a good reputation, particularly as a person of honesty and integrity, and shall favorably pass a thorough background investigation prior to appointment;
(2) The director shall not hold political office, either by election or appointment, while serving as director;
(3) The director shall be a citizen of the United States and must become a resident of the state within ninety days of appointment;
(4) The director shall receive an annual salary as provided for by the racing commission and the gaming commission; and
(5) The director and his or her executive secretary are ineligible for civil service coverage as provided in section four, article six, chapter twenty-nine of this code.
(e) Before entering upon the discharge of the duties as director, the director shall take and subscribe to the oath of office prescribed in section five, article IV of the constitution of West Virginia and shall enter into a bond in the penal sum of one hundred thousand dollars with a corporate surety authorized to engage in business in this state, conditioned upon the faithful discharge and performance of the duties of the office. The executed oath and bond shall be filed in the office of the secretary of state.
§29-29-8. Powers and duties of the director.
(a) The director shall have the following powers and duties:
(1) The responsibilities established in article twenty-two of this chapter;
(2) Establish, with the approval of the racing commission and the gaming commission, offices or sections to oversee the legal gaming activities;
(3) Appoint, with the approval of the racing commission and the gaming commission, a deputy director for each of the offices or sections established pursuant to this article. The deputy directors appointed shall serve at the will and pleasure of the director at an annual salary established by the racing commission and the gaming commission. Deputy directors shall not be eligible for civil service coverage as provided in section four, article six, chapter twenty-nine of this code;
(4) Hire, pursuant to the approval of the racing commission and the gaming commission, such professional, clerical, technical and administrative personnel as may be necessary to carry out the provisions of this article. No person shall be employed by the division who has been convicted of a felony or other crime involving moral turpitude. Each person employed by the division shall execute an authorization to allow an investigation of that person's background; and
(5) Do such other activities as needed to regulate legal gaming in West Virginia.
(b) Upon the transfer of all the legal gaming functions to the division of gaming, the gaming director is empowered to authorize the transfer of funds associated with the transfer and facilitate an orderly transfer of functions. The authority to make transfers pursuant to this article expires on the thirtieth day of June, two thousand four.
(c) All employees of the division, except as otherwise provided herein and which exception includes those employees of the racing commission set out in subparagraph (b), section five, article twenty-three, chapter nineteen of this code, shall be in the classified service under the provisions of article six, chapter twenty-nine of this code.
(d) The director shall, pursuant to the advise and approval of the racing commission and the gaming commission:
(1) Prepare and submit, by the first day of January, an annual report on all the legal gaming activities in West Virginia to the joint committee on government and finance, the department of tax and revenue and the governor; and
(2) Prepare and submit the annual proposed appropriations for the division to the governor.
§29-29-9. Continuation.
The division of gaming shall continue to exist, pursuant to the provisions of article ten, chapter four of this code, until the first day of July, two thousand five, unless sooner terminated, continued or reestablished pursuant to the provisions of that article.
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