H. B. 102
(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[April 16, 2001]
A BILL to amend article twenty-one, chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, by adding thereto a new section, designated section
twenty-one; to amend and reenact section five, article two, chapter fifteen of said code; to
amend and reenact section eight, article nine-b, chapter eighteen of said code; to amend and
reenact sections two, two-a, three, eight and eight-a, article four, chapter eighteen-a of said
code; to amend and reenact section thirteen-c, article twenty-three, chapter nineteen of said
code; to amend and reenact section eighteen, article twenty-two, chapter twenty-nine of said
code; to further amend said article by adding thereto a new section, designated section
eighteen-a; to amend and reenact sections six and ten, article twenty-two-a, of said chapter;
to further amend said article by adding thereto two new sections, designated sections ten-b
and ten-c; and to amend said chapter by adding thereto a new article, designated article
twenty-two-b, all relating generally to video lottery games, and providing for the distribution
of funds generated therefrom; allowing video lottery games to be played at restricted access
adult-only facilities licensed by alcohol beverage control commissioner and by lottery
commission under regulation of lottery commission; allocating the funds generated from
limited video lottery; providing a senior citizen tax credit for property tax paid on the first
ten thousand dollars taxable assessed value of a homestead in this state; providing salary
increases for teachers, service personnel, members of the state police, corrections officers
and other state employees; eliminating cap on bonds which may be issued by school building
authority; expenditure of racetrack video lottery distribution; providing for administrative
costs of state lottery commission; creating state excess lottery revenue fund and providing
for expenditure of the funds; increasing allowable wager for racetrack video lottery;
providing for distribution of excess net terminal income; creating surcharge on gross net
terminal income; creating capital reinvestment funds; use of surcharge funds; jockey's
pension fund; providing short title and statements of legislative purposes, findings and
intents; providing certain hardware and software requirements for video lottery terminals;
providing for video lottery terminals to be connected to lottery commission's central computer system; limiting aggregate number of video lottery terminals that may be located
at all licensed restricted access adult-only facilities; limiting number of video lottery
terminals that may be owned or leased by a licensed operator or limited video lottery retailer;
limiting the number of video lottery terminals located at any single licensed restricted access
adult-only facility; providing for licensure of manufacturers, operators, limited video lottery
retailers and service technicians; providing for initial allocation of terminals to restricted
access adult-only facilities by alcohol beverage control commission; providing for second
allocation of video lottery terminal to be by competitive bid; providing for distribution of net
income; defining certain terms; specifying powers and duties of lottery commission;
specifying conditions for licensure and duties of licensees; providing administrative
procedures; providing administrative and judicial remedies; providing administrative and
judicial due process; providing certain civil money penalties; providing criminal penalties
for certain violations; declaring gray gambling machines contraband after specified date;
providing for forfeiture and disposition of contraband; providing for distribution of proceeds
of forfeiture; defining relationship between this new article and existing state and local laws,
and providing for timing of implementation.
Be it enacted by the Legislature of West Virginia:
That article twenty-one, chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended by adding thereto a new section, designated section
twenty-one; that section five, article two, chapter fifteen of said code be amended and reenacted; that
section eight, article nine-b, chapter eighteen of said code be amended and reenacted; that sections
two, two-a, three, eight and eight-a, article four, chapter eighteen-a of said code be amend and
reenacted; that section thirteen-c, article twenty-three, chapter nineteen of said code be amended and
reenacted; that section eighteen, article twenty-two, chapter twenty-nine of said code be amended
and reenacted; that said article twenty-two be further amended by adding thereto a new section,
designated section eighteen-a; that sections six and ten, article twenty-two-a, of said chapter be
amended and reenacted; that said article twenty-two-a be further amended by adding thereto two new
sections, designated sections ten-b and ten-c; and that said chapter twenty-nine be further amended
by adding thereto a new article, designated article twenty-two-b, all to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-21. Senior citizens tax credit for property tax paid on first $10,000 of taxable assessed
value of a homestead in this state.
(a)
Allowance of credit. -- A low-income person who is allowed a twenty-thousand dollar
homestead exemption from the assessed value of his or her homestead for ad valorem property tax purposes as provided in section three, article six-b, of this chapter, shall be allowed a refundable
credit against the taxes imposed by this article equal to the amount of ad valorem property taxes paid
on up to the first ten thousand dollars of taxable assessed value of the homestead for property tax
years that begin on or after the first day of January two thousand two.
(b)
Terms defined. -- For purposes of this section:
(1) "Low income " means federal adjusted gross income for the taxable year that is one
hundred fifty percent or less of the federal poverty guideline for the year in which property tax was
paid, based upon the number of individuals in the family unit residing in the homestead, as
determined annually by the United States Secretary of Health and Human Services.
(2) "Taxes paid" means the aggregate of regular levies, excess levies and bond levies
extended against not more than ten thousand dollars of the taxable assessed value of a homestead
that are paid during the calendar year, determined after application of any discount for early payment
of taxes but before application of any penalty or interest for late payment of property taxes for a
property tax year that begins on or after the first day of January, two thousand two.
(c)
Legislative rule. -- The tax commissioner shall propose a legislative rule for promulgation
as provided in article three, chapter twenty-nine-a of this code to explain and implement this section.
(d)
Confidentiality. -- The tax commissioner shall utilize property tax information in the
statewide electronic data processing system network to the extent necessary for the purpose of
administering this section, notwithstanding any provision of this code to the contrary.
CHAPTER 15. PUBLIC SAFETY.
ARTICLE 2. WEST VIRGINIA STATE POLICE.
§15-2-5. Career progression system; salaries; exclusion from wage and hour law, with
supplemental payment; bond; leave time for members called to duty in guard
or reserves
.
(a) The superintendent shall establish within the West Virginia state police a system to
provide for: The promotion of members to the supervisory ranks of sergeant, first sergeant, second
lieutenant and first lieutenant; the classification of nonsupervisory members within the field
operations force to the ranks of trooper, senior trooper, trooper first class or corporal; the
classification of members assigned to the forensic laboratory as criminalist I-VII; and the temporary
reclassification of members assigned to administrative duties as administrative support specialist
I-VIII.
(b) The superintendent is authorized to propose legislative rules for promulgation in
accordance with article three, chapter twenty-nine-a of this code for the purpose of ensuring
consistency, predictability and independent review of any system developed under the provisions of
this section.
(c) The superintendent shall provide to each member a written manual governing any system
established under the provisions of this section and specific procedures shall be identified for the
evaluation and testing of members for promotion or reclassification and the subsequent placement
of any members on a promotional eligibility or reclassification recommendation list.
(d)
Beginning on the first day of July, two thousand one, and continuing thereafter, members
shall receive annual salaries as follows:
ANNUAL SALARY SCHEDULE (BASE PAY)
SUPERVISORY AND NONSUPERVISORY RANKS
Cadet During Training .............$1,747 Mo. $20,964
Cadet Trooper After Training ...... 2,150 Mo. 25,800
Trooper Second Year............................26,256
Trooper Third Year.............................26,628
Trooper Fourth & Fifth Year....................26,928
Senior Trooper.................................29,016
Trooper First Class............................31,104
Corporal.......................................33,192
Sergeant.......................................37,368
First Sergeant.................................39,456
Second Lieutenant..............................41,544
First Lieutenant...............................43,632
Captain........................................45,720
Major..........................................47,808
Lieutenant Colonel.............................49,896
Cadet During Training ............ $2,039 Mo. $24,476
Cadet Trooper After Training .......2,442 Mo. 29,312
Trooper Second Year............................29,768
Trooper Third Year.............................30,140
Trooper Fourth & Fifth Year....................30,440
Senior Trooper.................................32,528
Trooper First Class............................34,616
Corporal.......................................36,704
Sergeant.......................................40,880
First Sergeant.................................42,968
Second Lieutenant..............................45,056
First Lieutenant...............................47,144
Captain........................................49,232
Major..........................................51,320
Lieutenant Colonel.............................53,408
ANNUAL SALARY SCHEDULE (BASE PAY)
ADMINISTRATION
SUPPORT SPECIALIST CLASSIFICATION
I..............................................26,928
II.............................................29,016
III............................................31,104
IV.............................................33,192
V..............................................37,368
VI.............................................39,456
VII............................................41,544
VIII...........................................43,632
I..............................................30,440
II.............................................32,528
III............................................34,616
IV.............................................36,704
V..............................................40,880
VI.............................................42,968
VII............................................45,056
VIII...........................................47,144
ANNUAL SALARY SCHEDULE (BASE PAY)
CRIMINALIST CLASSIFICATION
I..............................................26,928
II.............................................29,016
III............................................31,104
IV.............................................33,192
V..............................................37,368
VI.............................................39,456
VII............................................41,544
I..............................................30,440
II.............................................32,528
III............................................34,616
IV.............................................36,704
V..............................................40,880
VI.............................................42,968
VII............................................45,056
Each member of the West Virginia state police whose salary is fixed and specified in this
annual salary schedule is entitled to the length of service increases set forth in subsection (f) of this
section and supplemental pay as provided in subsection (g) of this section.
(e) Each member of the West Virginia state police whose salary is fixed and specified
pursuant to this section shall receive, and is entitled to, an increase in salary over that set forth in
subsection (d) of this section, for grade in rank, based on length of service, including that service
served before and after the effective date of this section with the West Virginia state police as
follows: At the end of five years of service with the West Virginia state police, the member shall
receive a salary increase of three six hundred dollars to be effective during his or her next three years
of service and a like increase at three-year intervals thereafter, with the increases to be cumulative.
(f) In applying the salary schedules set forth in this section where salary increases are
provided for length of service, members of the West Virginia state police in service at the time the
schedules become effective shall be given credit for prior service and shall be paid such salaries as
the same length of service entitles them to receive under the provisions of this section.
(g) The Legislature finds and declares that because of the unique duties of members of the
West Virginia state police, it is not appropriate to apply the provisions of state wage and hour laws
to them. Accordingly, members of the West Virginia state police are excluded from the provisions
of state wage and hour law. This express exclusion shall not be construed as any indication that the
members were or were not covered by the wage and hour law prior to this exclusion.
In lieu of any overtime pay they might otherwise have received under the wage and hour law,
and in addition to their salaries and increases for length of service, members who have completed
basic training and who are exempt from federal Fair Labor Standards Act guidelines may receive
supplemental pay as provided in this section.
The superintendent shall, within thirty days after the effective date of this section, propose
a legislative rule for promulgation in accordance with article three, chapter twenty-nine-a of this
code, to establish the number of hours per month which constitute the standard work month for the
members of the West Virginia state police. The rule shall further establish, on a graduated hourly
basis, the criteria for receipt of a portion or all of supplemental payment when hours are worked in
excess of the standard work month. The superintendent shall certify monthly to the West Virginia
state police's payroll officer the names of those members who have worked in excess of the standard
work month and the amount of their entitlement to supplemental payment. The supplemental
payment may not exceed two hundred thirty-six dollars monthly. The superintendent and civilian
employees of the West Virginia state police are not eligible for any supplemental payments.
(h) Each member of the West Virginia state police, except the superintendent and civilian
employees, shall execute, before entering upon the discharge of his or her duties, a bond with
security in the sum of five thousand dollars payable to the state of West Virginia, conditioned upon
the faithful performance of his or her duties, and the bond shall be approved as to form by the
attorney general and as to sufficiency by the governor.
(i) Any member of the West Virginia state police who is called to perform active duty for
training or inactive duty training in the national guard or any reserve component of the armed forces
of the United States annually shall be granted, upon request, leave time not to exceed thirty calendar
days for the purpose of performing the active duty for training or inactive duty training and the time
granted may not be deducted from any leave accumulated as a member of the West Virginia state
police.
(j) Beginning on the first day of July, one thousand nine hundred ninety-nine, and continuing
thereafter, members shall receive annual salaries as follows:
AMENDED ANNUAL SALARY SCHEDULE
(BASE PAY)
SUPERVISORY AND NONSUPERVISORY RANKS
Cadet During Training ...........$1,913 Mo. $22,964
Cadet Trooper After Training.......2,316 Mo. 27,800
Trooper Second Year............................28,256
Trooper Third Year ...........................28,628
Trooper Fourth & Fifth Year....................28,928
Senior Trooper.................................31,016
Trooper First Class ..........................33,104
Corporal.......................................35,192
Sergeant.......................................39,368
First Sergeant.................................41,456
Second Lieutenant..............................43,544
First Lieutenant...............................45,632
Captain........................................47,720
Major..........................................49,808
Lieutenant Colonel.............................51,896
AMENDED ANNUAL SALARY SCHEDULE
(BASE PAY) ADMINISTRATION
SUPPORT SPECIALIST CLASSIFICATION
I ............................................$28,928
II ............................................31,016
III............................................33,104
IV ............................................35,192
V .............................................39,368
VI.............................................41,456
VII ...........................................43,544
VIII...........................................45,632
AMENDED ANNUAL SALARY SCHEDULE
(BASE PAY)
CRIMINALIST CLASSIFICATION
I..............................................28,928
II.............................................31,016
III............................................33,104
IV.............................................35,192
V .............................................39,368
VI ............................................41,456
VII ...........................................43,544
Each member of the West Virginia state police whose salary is fixed and specified in the
amended annual salary schedules is entitled to the length of service increases set forth in subsection
(f) of this section and supplemental pay as provided in subsection (g) of this section.
(k) Beginning on the first day of July, two thousand, and continuing thereafter, members shall
receive annual salaries as follows:
AMENDED ANNUAL SALARY SCHEDULE
(BASE PAY)
SUPERVISORY AND NONSUPERVISORY RANKS
Cadet During Training ............$1,976 Mo. $23,720
Cadet Trooper After Training ......2,379 Mo. 28,556
Trooper Second Year ..........................29,012
Trooper Third Year ...........................29,384
Trooper Fourth & Fifth Year ..................29,684
Senior Trooper ...............................31,772
Trooper First Class ..........................33,860
Corporal .....................................35,948
Sergeant .....................................40,124
First Sergeant ...............................42,212
Second Lieutenant ............................44,300
First Lieutenant .............................46,388
Captain ......................................48,476
Major ........................................50,564
Lieutenant Colonel ...........................52,652
AMENDED ANNUAL SALARY SCHEDULE (BASE PAY)
ADMINISTRATION
SUPPORT SPECIALIST CLASSIFICATION
I ............................................$29,684
II ............................................31,772
III ...........................................33,860
IV ............................................35,948
V .............................................40,124
VI ............................................42,212
VII ...........................................44,300
VIII ..........................................46,388
AMENDED ANNUAL SALARY SCHEDULE (BASE PAY)
CRIMINALIST CLASSIFICATION
I.............................................$29,684
II ............................................31,772
III ...........................................33,860
IV ............................................35,948
V .............................................40,124
VI ............................................42,212
VII ...........................................44,300
Each member of the West Virginia state police whose salary is fixed and specified in the
amended annual salary schedules is entitled to the length of service increases set forth in subsection
(f) of this section and supplemental pay as provided in subsection (g) of this section.
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-8. Use of proceeds of bonds; bonds exempt from taxation.
The maximum aggregate face value of bonds that may be issued by the authority, for which
the moneys in the school building debt service fund are to be pledged, is one hundred sixty million
dollars. The issuance of revenue bonds under the provisions of this article shall be authorized from
time to time by resolution or resolutions of the school building authority, which shall set forth the
proposed projects and provide for the issuance of bonds in amounts sufficient, when sold as
hereinafter provided, to provide moneys considered sufficient by the authority to pay
such the costs,
less the amounts of any other funds available for
said the costs or from any appropriation, grant or
gift
therefor for the costs: Provided, That bond issues from which bond revenues are to be
distributed in accordance with section fifteen of this article shall not be required to set forth the
proposed projects in the resolution.
Such The resolution shall prescribe the rights and duties of the
bondholders and the school building authority, and for
such that purpose may prescribe the form of
the trust agreement hereinafter referred to. The bonds may be issued from time to time, in such
amounts; shall be of such series; bear such date or dates; mature at such time or times not exceeding
forty years from their respective dates; bear interest at such rate or rates; be in such denominations; be in such form, either coupon or registered, carrying such registration, exchangeability and
interchangeability privileges; be payable in such medium of payment and at such place or places
within or without the state; be subject to such terms of redemption at such prices not exceeding one
hundred five percent of the principal amount
thereof of the bonds; and be entitled to such priorities
on the revenues paid into the fund pledged for repayment of the bonds as may be provided in the
resolution authorizing the issuance of the bonds or in any trust agreement made in connection
therewith with the bonds: Provided, however, That revenue bonds issued on or after the first day of
January, one thousand nine hundred ninety-four, which are secured by lottery proceeds shall mature
at such time or times not exceeding ten years from their respective dates.
The bonds shall be signed by the governor, and by the president or vice president of the
authority, under the great seal of the state, attested by the secretary of state, and the coupons attached
thereto to the bonds shall bear the facsimile signature of the president or vice president of the
authority. In case any of the officers whose signatures appear on the bonds or coupons cease to be
such officers before the delivery of
such the bonds,
such the signatures shall nevertheless be valid
and sufficient for all purposes the same as if such officers had remained in office until such delivery.
Such The revenue bonds shall be sold in
such the manner
as determined by the authority
may
determine to be for the best interests of the state.
Any pledge of revenues made by the school building authority for revenue bonds issued prior
to the twentieth day of July, one thousand nine hundred ninety-three, pursuant to this article
shall be
is valid and binding between the parties from the time the pledge is made; and the revenues
so
pledged shall immediately be subject to the lien of
such the pledge without any further physical
delivery thereof or further act. The lien of
such the pledge
shall be is valid and binding against all
parties having claims of any kind in tort, contract or otherwise, irrespective of whether
such the
parties have notice of the lien of
such the pledge, and
such the pledge shall be a prior and superior
charge over any other use of
such the revenues
so pledged.
The proceeds of
such any bonds shall be used solely for the purpose or purposes as may be
generally or specifically set forth in the resolution authorizing those bonds and shall be disbursed
in
such the manner and with
such the restrictions, if any,
as that the authority
may provide provides
in the resolution authorizing the issuance of
such the bonds or in the trust agreement hereinafter
referred to securing the same. If the proceeds of
such the bonds, by error in calculations or
otherwise,
shall be are less than the cost of any projects specifically set forth in the resolution,
additional bonds may in like manner be issued to provide the amount of the deficiency; and unless
otherwise provided for in the resolution or trust agreement hereinafter mentioned,
such the additional
bonds shall be considered to be of the same issue, and
shall be are entitled to payment from the same
fund, without preference or priority, as the bonds before issued for
such the projects. If the proceeds of bonds issued for
such the projects specifically set forth in the resolution authorizing
such the
bonds issued by the authority exceed the cost
thereof of the bonds, the surplus may be used for
such
any other projects
as determined by the school building authority
may determine or in
such any other
manner
as that the resolution authorizing
such the bonds
may provide provides. Prior to the
preparation of definitive bonds, the authority may, under like restrictions, issue temporary bonds
with or without coupons, exchangeable for definitive bonds upon the issuance of
such the definitive
bonds.
After the issuance of any of
such revenue bonds, the revenues
therefore pledged
for the
revenue bonds shall not be reduced as long as any of
such the revenue bonds are outstanding and
unpaid except under
such the terms, provisions and conditions
as shall be that are contained in the
resolution, trust agreement or other proceedings under which
such the revenue bonds were issued.
Such The revenue bonds and the revenue refunding bonds, and bonds issued for combined
purposes shall, together with the interest
thereon, be on the bonds, are exempt from all taxation by
the state of West Virginia, or by any county, school district, municipality or political subdivision
thereof.
To meet the operational costs of the school building authority, the school building authority
may transfer to a special revenue account in the state treasury interest on any debt service reserve
funds created within any resolution authorizing the issue of bonds or any trust agreement made in
connection
therewith with the bonds, for expenditure in accordance with legislative appropriation
or allocation of appropriation.
Any school construction bonds issued under this section shall be issued on parity with any
existing school building authority bonds previously issued under this article.
CHAPTER 18A. SCHOOL PERSONNEL.
ARTICLE 4. SALARIES, WAGES AND OTHER BENEFITS.
§18A-4-2. State minimum salaries for teachers.
(a) Each teacher shall receive the amount prescribed in the "state minimum salary schedule
I" as set forth in this section, specific additional amounts prescribed in this section or article, and any
county supplement in effect in a county pursuant to section five-a of this article during the contract
year:
Provided, That beginning on the first day of the second half of the teacher's employment term
in the school year two thousand one-two thousand two, and thereafter, each teacher shall receive the
amount prescribed in "state minimum salary schedule II" as set forth in this section, specific
additional amounts prescribed in this section or article, and any county supplement in effect in a
county pursuant to section five-a of this article during the contract year.
STATE MINIMUM SALARY SCHEDULE I
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)
Years4
th3
rd2
ndA.B.M.A.M.A.M.A.Doc-
Exp.ClassClassClassA.B.+15M.A.+15+30+45trate
0
|
18,572
|
19,209
|
19,464
|
20,674
|
21,409
|
23,117
|
23,852
|
24,587
|
25,322
|
26,322
|
1
|
18,853
|
19,490
|
19,745
|
21,139
|
21,874
|
23,582
|
24,317
|
25,052
|
25,787
|
26,787
|
2
|
19,134
|
19,772
|
20,027
|
21,604
|
22,339
|
24,047
|
24,782
|
25,517
|
26,252
|
27,252
|
3
|
19,416
|
20,053
|
20,308
|
22,069
|
22,804
|
24,512
|
25,247
|
25,982
|
26,717
|
27,717
|
4
|
19,933
|
20,570
|
20,826
|
22,770
|
23,505
|
25,213
|
25,948
|
26,683
|
27,418
|
28,418
|
5
|
20,214
|
20,852
|
21,107
|
23,235
|
23,970
|
25,678
|
26,413
|
27,148
|
27,883
|
28,883
|
6
|
20,496
|
21,133
|
21,388
|
23,700
|
24,435
|
26,143
|
26,878
|
27,613
|
28,348
|
29,348
|
7
|
20,496
|
21,414
|
21,670
|
24,165
|
24,900
|
26,608
|
27,343
|
28,078
|
28,813
|
29,813
|
8
|
20,496
|
21,696
|
21,951
|
24,630
|
25,365
|
27,073
|
27,808
|
28,543
|
29,278
|
30,278
|
9
|
20,496
|
|
22,232
|
25,095
|
25,830
|
27,538
|
28,273
|
29,008
|
29,743
|
30,743
|
10
|
20,496
|
|
22,513
|
25,561
|
26,296
|
28,004
|
28,739
|
29,474
|
30,209
|
31,209
|
11
|
20,496
|
|
|
26,026
|
26,761
|
28,469
|
29,204
|
29,939
|
30,674
|
31,674
|
12
|
20,496
|
|
|
26,491
|
27,226
|
28,934
|
29,669
|
30,404
|
31,139
|
32,139
|
13
|
20,496
|
|
|
26,956
|
27,691
|
29,399
|
30,134
|
30,869
|
31,604
|
32,604
|
14
|
20,496
|
|
|
|
|
29,864
|
30,599
|
31,334
|
32,069
|
33,069
|
15
|
20,496
|
|
|
|
|
30,329
|
31,064
|
31,799
|
32,534
|
33,534
|
16
|
20,496
|
|
|
|
|
30,794
|
31,529
|
32,264
|
32,999
|
33,999
|
17
|
20,496
|
|
|
|
|
|
|
32,729
|
33,464
|
34,464
|
18
|
20,496
|
|
|
|
|
|
|
33,194
|
33,929
|
34,929
|
19
|
20,496
|
|
|
|
|
|
|
33,659
|
34,394
|
35,394
|
Subject to a recommendation by the governor for a pay raise through the delivery of an executive
message to the Legislature and an appropriation by the Legislature for a pay raise, each teacher shall receive,
effective the first day of July, one thousand nine hundred ninety-nine, and thereafter, the amount prescribed
in "state minimum salary schedule II" as set forth in this section or article, and any county supplement in
effect in a county pursuant to section five-a of this article during the contract year.
STATE MINIMUM SALARY SCHEDULE II
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)
Years4th3
rd2
ndA.B.M.A.M.A.M.A.Doc-
Exp.ClassClassClassA.B.+15M.A.+15+30+45trate
0
|
19,328
|
19,965
|
20,220
|
21,430
|
22,165
|
23,873
|
24,608
|
25,343
|
26,078
|
27,078
|
1
|
19,609
|
20,246
|
20,501
|
21,895
|
22,630
|
24,338
|
25,073
|
25,808
|
26,543
|
27,543
|
2
|
19,890
|
20,528
|
20,783
|
22,360
|
23,095
|
24,803
|
25,538
|
26,273
|
27,008
|
28,008
|
3
|
20,172
|
20,809
|
21,064
|
22,825
|
23,560
|
25,268
|
26,003
|
26,738
|
27,473
|
28,473
|
4
|
20,689
|
21,326
|
21,582
|
23,526
|
24,261
|
25,969
|
26,704
|
27,439
|
28,174
|
29,174
|
5
|
20,970
|
21,608
|
21,863
|
23,991
|
24,726
|
26,434
|
27,169
|
27,904
|
28,639
|
29,639
|
6
|
21,252
|
21,889
|
22,144
|
24,456
|
25,191
|
26,899
|
27,634
|
28,369
|
29,104
|
30,104
|
7
|
21,252
|
22,170
|
22,426
|
24,921
|
25,656
|
27,364
|
28,099
|
28,834
|
29,569
|
30,569
|
8
|
21,252
|
22,452
|
22,707
|
25,386
|
26,121
|
27,829
|
28,564
|
29,299
|
30,034
|
31,034
|
9
|
21,252
|
|
22,988
|
25,851
|
26,586
|
28,294
|
29,029
|
29,764
|
30,499
|
31,499
|
10
|
21,252
|
|
23,269
|
26,317
|
27,052
|
28,760
|
29,495
|
30,230
|
30,965
|
31,965
|
11
|
21,252
|
|
|
26,782
|
27,517
|
29,225
|
29,960
|
30,695
|
31,430
|
32,430
|
12
|
21,252
|
|
|
27,247
|
27,982
|
29,690
|
30,425
|
31,160
|
31,895
|
32,895
|
13
|
21,252
|
|
|
27,712
|
28,447
|
30,155
|
30,890
|
31,625
|
32,360
|
33,360
|
14
|
21,252
|
|
|
|
|
30,620
|
31,355
|
32,090
|
32,825
|
33,825
|
15
|
21,252
|
|
|
|
|
31,085
|
31,820
|
32,555
|
33,290
|
34,290
|
16
|
21,252
|
|
|
|
|
31,550
|
32,285
|
33,020
|
33,755
|
34,755
|
17
|
21,252
|
|
|
|
|
|
|
33,485
|
34,220
|
35,220
|
18
|
21,252
|
|
|
|
|
|
|
33,950
|
34,685
|
35,685
|
19
|
21,252
|
|
|
|
|
|
|
34,415
|
35,150
|
36,150
|
If "state minimum salary schedule II" becomes effective on the first day of July, one thousand nine
hundred ninety-nine, and the governor recommends a pay raise through the delivery of an executive message
to the Legislature and the Legislature appropriates money for a pay raise, each teacher shall receive, effective
the first day of July, two thousand, and thereafter, the amount prescribed in "state minimum salary schedule
III" as set forth in this section or article, and any county supplement in effect in a county pursuant to section
five-a of this article during the contract year.
STATE MINIMUM SALARY SCHEDULE III I
(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)
Years4
th3
rd2
ndA.B.M.A.M.A.M.A.Doctrate
Exp.ClassClassClassA.B.+15M.A.+15+30+45
0
|
20,084
|
20,721
|
20,976
|
22,186
|
22,921
|
24,629
|
25,364
|
26,099
|
26,834
|
27,834
|
1
|
20,365
|
21,002
|
21,257
|
22,651
|
23,386
|
25,094
|
25,829
|
26,564
|
27,299
|
28,299
|
2
|
20,646
|
21,284
|
21,539
|
23,116
|
23,851
|
25,559
|
26,294
|
27,029
|
27,764
|
28,764
|
3
|
20,928
|
21,565
|
21,820
|
23,581
|
24,316
|
26,024
|
26,759
|
27,494
|
28,229
|
29,229
|
4
|
21,445
|
22,082
|
22,338
|
24,282
|
25,017
|
26,725
|
27,460
|
28,195
|
28,930
|
29,930
|
5
|
21,726
|
22,364
|
22,619
|
24,747
|
25,482
|
27,190
|
27,925
|
28,660
|
29,395
|
30,395
|
6
|
22,008
|
22,645
|
22,900
|
25,212
|
25,947
|
27,655
|
28,390
|
29,125
|
29,860
|
30,860
|
7
|
22,008
|
22,926
|
23,182
|
25,677
|
26,412
|
28,120
|
28,855
|
29,590
|
30,325
|
31,325
|
8
|
22,008
|
23,208
|
23,463
|
26,142
|
26,877
|
28,585
|
29,320
|
30,055
|
30,790
|
31,790
|
9
|
22,008
|
|
23,744
|
26,607
|
27,342
|
29,050
|
29,785
|
30,520
|
31,255
|
32,255
|
10
|
22,008
|
|
24,025
|
27,073
|
27,808
|
29,516
|
30,251
|
30,986
|
31,721
|
32,721
|
11
|
22,008
|
|
|
27,538
|
28,273
|
29,981
|
30,716
|
31,451
|
32,186
|
33,186
|
12
|
22,008
|
|
|
28,003
|
28,738
|
30,446
|
31,181
|
31,916
|
32,651
|
33,651
|
13
|
22,008
|
|
|
28,468
|
29,203
|
30,911
|
31,646
|
32,381
|
33,116
|
34,116
|
14
|
22,008
|
|
|
|
|
31,376
|
32,111
|
32,846
|
33,581
|
34,581
|
15
|
22,008
|
|
|
|
|
31,841
|
32,576
|
33,311
|
34,046
|
35,046
|
16
|
22,008
|
|
|
|
|
32,306
|
33,041
|
33,776
|
34,511
|
35,511
|
17
|
22,008
|
|
|
|
|
|
|
34,241
|
34,976
|
35,976
|
18
|
22,008
|
|
|
|
|
|
|
34,706
|
35,441
|
36,441
|
19
|
22,008
|
|
|
|
|
|
|
35,171
|
35,906
|
36,906
|
STATE MINIMUM SALARY SCHEDULE II
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)
Years4th3rd2ndA.B. M.A.M.A.M.A. Doctrate
Exp.ClassClassClassA.B.+15M.A.+15+30+45
0
|
21,084
|
21,721
|
21,976
|
23,186
|
23,921
|
25,629
|
26,364
|
27,099
|
27,834
|
28,834
|
1
|
21,365
|
22,002
|
22,257
|
23,651
|
24,386
|
26,094
|
26,829
|
27,564
|
28,299
|
29,299
|
2
|
21,646
|
22,284
|
22,539
|
24,116
|
24,851
|
26,559
|
27,294
|
28,029
|
28,764
|
29,764
|
3
|
21,928
|
22,565
|
22,820
|
24,581
|
25,316
|
27,024
|
27,759
|
28,494
|
29,229
|
30,229
|
4
|
22,445
|
23,082
|
23,338
|
25,282
|
26,017
|
27,725
|
28,460
|
29,195
|
29,930
|
30,930
|
5
|
22,726
|
23,364
|
23,619
|
25,747
|
26,482
|
28,190
|
28,925
|
29,660
|
30,395
|
31,395
|
6
|
23,008
|
23,645
|
23,900
|
26,212
|
26,947
|
28,655
|
29,390
|
30,125
|
30,860
|
31,860
|
7
|
22,008
|
23,926
|
24,182
|
26,677
|
27,412
|
29,120
|
29,855
|
30,590
|
31,325
|
32,325
|
8
|
22,008
|
24,208
|
24,463
|
27,142
|
27,877
|
29,585
|
30,320
|
31,055
|
31,790
|
32,790
|
9
|
22,008
|
|
24,744
|
27,607
|
28,342
|
30,050
|
30,785
|
31,520
|
32,255
|
33,255
|
10
|
22,008
|
|
25,025
|
28,073
|
28,808
|
30,516
|
31,251
|
31,986
|
32,721
|
33,721
|
11
|
22,008
|
|
|
28,538
|
29,273
|
30,981
|
31,716
|
32,451
|
33,186
|
34,186
|
12
|
22,008
|
|
|
29,003
|
29,738
|
31,446
|
32,181
|
32,916
|
33,651
|
34,651
|
13
|
22,008
|
|
|
29,468
|
30,203
|
31,911
|
32,646
|
33,381
|
34,116
|
35,116
|
14
|
22,008
|
|
|
|
|
32,376
|
33,111
|
33,846
|
34,581
|
35,581
|
15
|
22,008
|
|
|
|
|
32,841
|
33,576
|
34,311
|
35,046
|
36,046
|
16
|
22,008
|
|
|
|
|
33,306
|
34,041
|
34,776
|
35,511
|
36,511
|
17
|
22,008
|
|
|
|
|
|
|
35,241
|
35,976
|
36,976
|
18
|
22,008
|
|
|
|
|
|
|
35,706
|
36,441
|
37,441
|
19
|
22,008
|
|
|
|
|
|
|
36,171
|
36,906
|
37,906
|
(b) Six hundred dollars shall be paid annually to each classroom teacher who has at least
twenty years of teaching experience. The payments: (i) Shall be in addition to any amounts
prescribed in the applicable state minimum salary schedule; (ii) shall be paid in equal monthly
installments; and (iii) shall be considered a part of the state minimum salaries for teachers.
(c) In addition to any amounts prescribed in the applicable state minimum salary schedule,
each professional educator shall be paid annually the following increment amounts in accordance
with their years of experience. The payments shall be paid in equal monthly installments and shall
be considered a part of the state minimum salaries for teachers.
Years of ExperienceIncrement
23200
26200
29200
32200
35200
§18A-4-2a. State minimum salary bonus for classroom teachers with national board
certification.
(a) The Legislature hereby finds and declares that the rigorous standards and processes for
certification by the national board for professional teaching standards (NBPTS) helps to promote the
quality of teaching and learning. Therefore, classroom teachers in the public schools of West
Virginia should be encouraged to achieve national board certification through a reimbursement of
expenses and an additional salary bonus which reflects their additional certification, to be paid in
accordance with subsection (b) of this section.
(b) Beginning on the first day of July, one thousand nine hundred ninety-eight, and subject
to legislative appropriation, one thousand Two thousand five hundred dollars shall be paid annually
at the conclusion of the first semester to each classroom teacher who holds a valid certificate issued
by the national board of professional teaching standards for the life of the certification, but in no
event more than ten years for any one certification. The payments: (i) Shall be in addition to any
amounts prescribed in the applicable state minimum salary schedule; (ii) shall be paid in equal
monthly installments; and (iii) shall be considered a part of the state minimum salaries for teachers.
(c) Subject to legislative appropriation, one-half the certification fee one thousand dollars
shall be paid for reimbursement once to each teacher who enrolls in the program for the national
board for professional teaching standards certification and one-half the certification fee one thousand
dollars shall be paid for reimbursement once to each teacher who completes the national board for
professional teaching standards certification. Teachers who achieve national board for professional
teaching standards certification may be reimbursed a maximum of six hundred dollars for expenses
actually incurred while obtaining the national board for professional teaching standards certification.
(d) The state board shall limit the number of teachers who receive the initial reimbursements
to one two hundred teachers annually. The state board shall establish selection criteria for the one
two hundred teachers by the legislative rule required pursuant to subsection (g) of this section.
(e) Funding for reimbursement of the certification fee and expenses actually incurred while
obtaining the national board for professional teaching standards certifications shall be administered
by the state department of education from an appropriation established for that purpose by the
Legislature. If funds appropriated by the Legislature to accomplish the purposes of this section
subsection are insufficient, the state department shall prorate the reimbursements for expenses and salary bonuses and shall request of the Legislature, at its next regular session, funds sufficient to
accomplish the purposes of this section subsection, including needed retroactive payments.
(f) Nothing is this section shall be construed to require any level of appropriation by the
Legislature nor to create any entitlement for payments pursuant to the provisions of this section.
(g) (f) The state board shall promulgate legislative rules pursuant to article three-b, chapter
twenty-nine-a of this code to implement the provisions of this section.
§18A-4-3. State minimum annual salary increments for principals and assistant principals.
In addition to any salary increments for principals and assistant principals, in effect on the
first day of January, one thousand nine hundred ninety-six, and paid from local funds, and in addition
to the county schedule in effect for teachers, the county board shall pay each principal, a principal's
salary increment and each assistant principal an assistant principal's salary increment as prescribed
by this section commencing on the first day of July, one thousand nine hundred ninety-six, from state
funds appropriated for the salary increments.
State funds for this purpose shall be paid within the West Virginia public school support plan
in accordance with article nine-a, chapter eighteen of this code.
The salary increment in this section for each principal shall be determined by multiplying the
basic salary for teachers in accordance with the classification of certification and of training of the
principal as prescribed in this article, by the appropriate percentage rate prescribed in this section
according to the number of teachers supervised.
STATE MINIMUM SALARY INCREMENT
RATES FOR PRINCIPALS
No. of Teachers
Supervised
Rates
1-7
6.0% 9.0%
8-14
6.5% 9.5%
15-24
7.0% 10.0%
25-38
7.5% 10.5%
39-57
8.0% 11.0%
58 and up
8.5% 11.5%
The salary increment in this section for each assistant principal shall be determined in the
same manner as that for principals, utilizing the number of teachers supervised by the principal under
whose direction the assistant principal works, except that the percentage rate shall be fifty percent
of the rate prescribed for the principal.
Salaries for employment beyond the minimum employment term shall be at the same daily
rate as the salaries for the minimum employment terms.
For the purpose of determining the number of teachers supervised by a principal, the county
board shall use data for the second school month of the prior school term and the number of teachers
shall be interpreted to mean the total number of professional educators assigned to each school on
a full-time equivalency basis:
Provided, That if there is a change in circumstances because of
consolidation or catastrophe, the county board shall determine what is a reasonable number of
supervised teachers in order to establish the appropriate increment percentage rate.
No county may reduce local funds allocated for salary increments for principals and assistant
principals in effect on the first day of January, one thousand nine hundred ninety-six, and used in
supplementing the state minimum salaries as provided for in this article, unless forced to do so by
defeat of a special levy, or a loss in assessed values or events over which it has no control and for
which the county board has received approval from the state board prior to making the reduction.
Nothing in this section prevents a county board from providing, in a uniform manner, salary
increments greater than those required by this section.
§18A-4-8. Employment term and class titles of service personnel; definitions.
(a) The purpose of this section is to establish an employment term and class titles for service
personnel. The employment term for service personnel may be no less than ten months. A month
is defined as twenty employment days:
Provided, That the county board may contract with all or part
of these service personnel for a longer term. The beginning and closing dates of the ten-month
employment term may not exceed forty-three weeks.
(b) Service personnel employed on a yearly or twelve-month basis may be employed by
calendar months. Whenever there is a change in job assignment during the school year, the
minimum pay scale and any county supplement are applicable.
(c) Service personnel employed in the same classification for more than the two hundred day
minimum employment term shall be paid for additional employment at a daily rate of not less than
the daily rate paid for the two hundred day minimum employment term.
(d) No service employee, without his or her agreement, may be required to report for work
more than five days per week and no part of any working day may be accumulated by the employer
for future work assignments, unless the employee agrees thereto.
(e) If an employee whose regular work week is scheduled from Monday through Friday
agrees to perform any work assignments on a Saturday or Sunday, the employee shall be paid for at
least one-half day of work for each day he or she reports for work, and if the employee works more
than three and one-half hours on any Saturday or Sunday, he or she shall be paid for at least a full
day of work for each day.
(f) Custodians, aides, maintenance, office and school lunch employees required to work a
daily work schedule that is interrupted, that is, who do not work a continuous period in one day, shall be paid additional compensation equal to at least one eighth of their total salary as provided by their
state minimum salary and any county pay supplement, and payable entirely from county funds:
Provided, That when engaged in duties of transporting students exclusively, aides shall not be
regarded as working an interrupted schedule. Maintenance personnel are defined as personnel who
hold a classification title other than in a custodial, aide, school lunch, office or transportation
category as provided in section one, article one of this chapter.
(g) Upon the change in classification or upon meeting the requirements of an advanced
classification of or by any employee, the employee's salary shall be made to comply with the
requirements of this article, and to any county salary schedule in excess of the minimum
requirements of this article, based upon the employee's advanced classification and allowable years
of employment.
(h) An employee's contract as provided in section five, article two of this chapter shall state
the appropriate monthly salary the employee is to be paid, based on the class title as provided in this
article and any county salary schedule in excess of the minimum requirements of this article.
(i) The column heads of the state minimum pay scale and class titles, set forth in section
eight-a of this article, are defined as follows:
(1) "Pay grade" means the monthly salary applicable to class titles of service personnel;
(2) "Years of employment" means the number of years which an employee classified as
service personnel has been employed by a board in any position prior to or subsequent to the
effective date of this section and including service in the armed forces of the United States, if the
employee were employed at the time of his or her induction. For the purpose of section eight-a of
this article, years of employment shall be limited to the number of years shown and allowed under
the state minimum pay scale as set forth in section eight-a of this article;
(3) "Class title" means the name of the position or job held by service personnel;
(4) "Accountant I" means personnel employed to maintain payroll records and reports and
perform one or more operations relating to a phase of the total payroll;
(5) "Accountant II" means personnel employed to maintain accounting records and to be
responsible for the accounting process associated with billing, budgets, purchasing and related
operations;
(6) "Accountant III" means personnel who are employed in the county board office to manage
and supervise accounts payable and/or payroll procedures;
(7) "Accounts payable supervisor" means personnel who are employed in the county board
office who have primary responsibility for the accounts payable function, which may include the
supervision of other personnel, and who have either completed twelve college hours of accounting
courses from an accredited institution of higher education or have at least eight years of experience performing progressively difficult accounting tasks;
(7) (8) "Aide I" means those personnel selected and trained for teacher-aide classifications
such as monitor aide, clerical aide, classroom aide or general aide;
(8) (9) "Aide II" means those personnel referred to in the "Aide I" classification who have
completed a training program approved by the state board, or who hold a high school diploma or
have received a general educational development certificate. Only personnel classified in an Aide
II class title may be employed as an aide in any special education program;
(9) (10) "Aide III" means those personnel referred to in the "Aide I" classification who hold
a high school diploma or a general educational development certificate and have completed six
semester hours of college credit at an institution of higher education or are employed as an aide in
a special education program and have one year's experience as an aide in special education;
(10) (11) "Aide IV" means personnel referred to in the "Aide I" classification who hold a high
school diploma or a general educational development certificate and who have completed eighteen
hours of state board-approved college credit at a regionally accredited institution of higher education,
or who have completed fifteen hours of state board-approved college credit at a regionally accredited
institution of higher education and successfully completed an in-service training program determined
by the state board to be the equivalent of three hours of college credit;
(11) (12) "Audiovisual technician" means personnel employed to perform minor maintenance
on audiovisual equipment, films, supplies and the filling of requests for equipment;
(12) (13) "Auditor" means personnel employed to examine and verify accounts of individual
schools and to assist schools and school personnel in maintaining complete and accurate records of
their accounts;
(13) (14) "Autism mentor" means personnel who work with autistic students and who meet
standards and experience to be determined by the state board:
Provided, That if any employee has
held or holds an aide title and becomes employed as an autism mentor, the employee shall hold a
multiclassification status that includes aide and autism mentor titles, in accordance with section
eight-b of this article;
(14) (15) "Braille or sign language specialist" means personnel employed to provide braille
and/or sign language assistance to students:
Provided, That if any employee has held or holds an
aide title and becomes employed as a braille or sign language specialist, the employee shall hold a
multiclassification status that includes aide and braille or sign language specialist title, in accordance
with section eight-b of this article;
(15) (16) "Bus operator" means personnel employed to operate school buses and other school
transportation vehicles as provided by the state board;
(16) (17) "Buyer" means personnel employed to review and write specifications, negotiate purchase bids and recommend purchase agreements for materials and services that meet
predetermined specifications at the lowest available costs;
(17) (18) "Cabinetmaker" means personnel employed to construct cabinets, tables, bookcases
and other furniture;
(18) (19) "Cafeteria manager" means personnel employed to direct the operation of a food
services program in a school, including assigning duties to employees, approving requisitions for
supplies and repairs, keeping inventories, inspecting areas to maintain high standards of sanitation,
preparing financial reports and keeping records pertinent to food services of a school;
(19) (20) "Carpenter I" means personnel classified as a carpenter's helper;
(20) (21) "Carpenter II" means personnel classified as a journeyman carpenter;
(21) (22) "Chief mechanic" means personnel employed to be responsible for directing
activities which ensure that student transportation or other board-owned vehicles are properly and
safely maintained;
(22) (23) "Clerk I" means personnel employed to perform clerical tasks;
(23) (24) "Clerk II" means personnel employed to perform general clerical tasks, prepare
reports and tabulations and operate office machines;
(24) (25) "Computer operator" means qualified personnel employed to operate computers;
(25) (26) "Cook I" means personnel employed as a cook's helper;
(26) (27) "Cook II" means personnel employed to interpret menus, to prepare and serve meals
in a food service program of a school and shall include personnel who have been employed as a
"Cook I" for a period of four years, if the personnel have not been elevated to this classification
within that period of time;
(27) (28) "Cook III" means personnel employed to prepare and serve meals, make reports,
prepare requisitions for supplies, order equipment and repairs for a food service program of a school
system;
(28) (29) "Crew leader" means personnel employed to organize the work for a crew of
maintenance employees to carry out assigned projects;
(29) (30) "Custodian I" means personnel employed to keep buildings clean and free of refuse;
(30) (31) "Custodian II" means personnel employed as a watchman or groundsman;
(31) (32) "Custodian III" means personnel employed to keep buildings clean and free of
refuse, to operate the heating or cooling systems and to make minor repairs;
(32) (33) "Custodian IV" means personnel employed as head custodians. In addition to
providing services as defined in "custodian III," their duties may include supervising other custodian
personnel;
(33) (34) "Director or coordinator of services" means personnel who are assigned to direct a department or division. Nothing in this subdivision may prohibit professional personnel or
professional educators as defined in section one, article one of this chapter, from holding this class
title, but professional personnel may not be defined or classified as service personnel unless the
professional personnel held a service personnel title under this section prior to holding class title of
"director or coordinator of services." Directors or coordinators of service positions shall be classified
as either a professional personnel or service personnel position for state aid formula funding
purposes and funding for directors or coordinators of service positions shall be based upon the
employment status of the director or coordinator either as a professional personnel or service
personnel;
(34) (35) "Draftsman" means personnel employed to plan, design and produce detailed
architectural/engineering drawings;
(35) (36) "Electrician I" means personnel employed as an apprentice electrician helper or who
holds an electrician helper license issued by the state fire marshal;
(36) (37) "Electrician II" means personnel employed as an electrician journeyman or who
holds a journeyman electrician license issued by the state fire marshal;
(37) (38) "Electronic technician I" means personnel employed at the apprentice level to repair
and maintain electronic equipment;
(38) (39) "Electronic technician II" means personnel employed at the journeyman level to
repair and maintain electronic equipment;
(39) (40) "Executive secretary" means personnel employed as the county school
superintendent's secretary or as a secretary who is assigned to a position characterized by significant
administrative duties;
(40) (41) "Food services supervisor" means qualified personnel not defined as professional
personnel or professional educators in section one, article one of this chapter, employed to manage
and supervise a county school system's food service program. The duties would include preparing
in-service training programs for cooks and food service employees, instructing personnel in the areas
of quantity cooking with economy and efficiency and keeping aggregate records and reports;
(41) (42) "Foremen" means skilled persons employed for supervision of personnel who work
in the areas of repair and maintenance of school property and equipment;
(42) (43) "General maintenance" means personnel employed as helpers to skilled
maintenance employees and to perform minor repairs to equipment and buildings of a county school
system;
(43) (44) "Glazier" means personnel employed to replace glass or other materials in windows
and doors and to do minor carpentry tasks;
(44) (45) "Graphic artist" means personnel employed to prepare graphic illustrations;
(45) (46) "Groundsmen" means personnel employed to perform duties that relate to the
appearance, repair and general care of school grounds in a county school system. Additional
assignments may include the operation of a small heating plant and routine cleaning duties in
buildings;
(46) (47) "Handyman" means personnel employed to perform routine manual tasks in any
operation of the county school system;
(47) (48) "Heating and air conditioning mechanic I" means personnel employed at the
apprentice level to install, repair and maintain heating and air conditioning plants and related
electrical equipment;
(48) (49) "Heating and air conditioning mechanic II" means personnel employed at the
journeyman level to install, repair and maintain heating and air conditioning plants and related
electrical equipment;
(49) (50) "Heavy equipment operator" means personnel employed to operate heavy
equipment;
(50) (51) "Inventory supervisor" means personnel who are employed to supervise or maintain
operations in the receipt, storage, inventory and issuance of materials and supplies;
(51) (52) "Key punch operator" means qualified personnel employed to operate key punch
machines or verifying machines;
(52) (53) "Locksmith" means personnel employed to repair and maintain locks and safes;
(53) (54) "Lubrication man" means personnel employed to lubricate and service gasoline or
diesel-powered equipment of a county school system;
(54) (55) "Machinist" means personnel employed to perform machinist tasks which include
the ability to operate a lathe, planer, shaper, threading machine and wheel press. These personnel
should also have, the ability to work from blueprints and drawings;
(55) (56) "Mail clerk" means personnel employed to receive, sort, dispatch, deliver or
otherwise handle letters, parcels and other mail;
(56) (57) "Maintenance clerk" means personnel employed to maintain and control a stocking
facility to keep adequate tools and supplies on hand for daily withdrawal for all school maintenance
crafts;
(57) (58) "Mason" means personnel employed to perform tasks connected with brick and
block laying and carpentry tasks related to such laying;
(58) (59) "Mechanic" means personnel employed who can independently perform skilled
duties in the maintenance and repair of automobiles, school buses and other mechanical and mobile
equipment to use in a county school system;
(59) (60) "Mechanic assistant" means personnel employed as a mechanic apprentice and helper;
(60) (61) "Multiclassification" means personnel employed to perform tasks that involve the
combination of two or more class titles in this section. In these instances the minimum salary scale
shall be the higher pay grade of the class titles involved;
(61) (62) "Office equipment repairman I" means personnel employed as an office equipment
repairman apprentice or helper;
(62) (63) "Office equipment repairman II" means personnel responsible for servicing and
repairing all office machines and equipment. Personnel are responsible for parts being purchased
necessary for the proper operation of a program of continuous maintenance and repair;
(63) (64) "Painter" means personnel employed to perform duties of painting, finishing and
decorating of wood, metal and concrete surfaces of buildings, other structures, equipment, machinery
and furnishings of a county school system;
(64) (65) "Paraprofessional" means a person certified pursuant to section two-a, article three
of this chapter to perform duties in a support capacity including, but not limited to, facilitating in the
instruction and direct or indirect supervision of pupils under the direction of a principal, a teacher
or another designated professional educator:
Provided, That no person employed on the effective
date of this section in the position of an aide may be reduced in force or transferred to create a
vacancy for the employment of a paraprofessional:
Provided, however, That if any employee has
held or holds an aide title and becomes employed as a paraprofessional, the employee shall hold a
multiclassification status that includes aide and paraprofessional titles in accordance with section
eight-b of this article:
Provided further, That once an employee who holds an aide title becomes
certified as a paraprofessional and is required to perform duties that may not be performed by an aide
without paraprofessional certification, he or she shall receive the paraprofessional title pay grade;
(66) "Payroll supervisor" means personnel who are employed in the county board office who
have primary responsibility for the payroll function, which may include the supervision of other
personnel, and who have either completed twelve college hours of accounting from an accredited
institution of higher education or have at least eight years of experience performing progressively
difficult accounting tasks;
(65) (67) "Plumber I" means personnel employed as an apprentice plumber and helper;
(66) (68) "Plumber II" means personnel employed as a journeyman plumber;
(67) (69) "Printing operator" means personnel employed to operate duplication equipment,
and as required, to cut, collate, staple, bind and shelve materials;
(68) (70) "Printing supervisor" means personnel employed to supervise the operation of a
print shop;
(69) (71) "Programmer" means personnel employed to design and prepare programs for computer operation;
(70) (72) "Roofing/sheet metal mechanic" means personnel employed to install, repair,
fabricate and maintain roofs, gutters, flashing and duct work for heating and ventilation;
(71) (73) "Sanitation plant operator" means personnel employed to operate and maintain a
water or sewage treatment plant to ensure the safety of the plant's effluent for human consumption
or environmental protection;
(72) (74) "School bus supervisor" means qualified personnel employed to assist in selecting
school bus operators and routing and scheduling of school buses, operate a bus when needed, relay
instructions to bus operators, plan emergency routing of buses and promoting good relationships with
parents, pupils, bus operators and other employees;
(73) (75) "Secretary I" means personnel employed to transcribe from notes or mechanical
equipment, receive callers, perform clerical tasks, prepare reports and operate office machines;
(74) (76) "Secretary II" means personnel employed in any elementary, secondary,
kindergarten, nursery, special education, vocational or any other school as a secretary. The duties
may include performing general clerical tasks, transcribing from notes or stenotype or mechanical
equipment or a sound-producing machine, preparing reports, receiving callers and referring them to
proper persons, operating office machines, keeping records and handling routine correspondence.
There is nothing implied in this subdivision that would prevent the employees from holding or being
elevated to a higher classification;
(75) (77) "Secretary III" means personnel assigned to the county board office administrators
in charge of various instructional, maintenance, transportation, food services, operations and health
departments, federal programs or departments with particular responsibilities of purchasing and
financial control or any personnel who have served in a position which meets the definition of
"secretary II" or "secretary III" in this section for eight years;
(76) (78) "Supervisor of maintenance" means skilled personnel not defined as professional
personnel or professional educators as in section one, article one of this chapter. The responsibilities
would include directing the upkeep of buildings and shops, issuing instructions to subordinates
relating to cleaning, repairs and maintenance of all structures and mechanical and electrical
equipment of a board;
(77) (79) "Supervisor of transportation" means qualified personnel employed to direct school
transportation activities, properly and safely, and to supervise the maintenance and repair of vehicles,
buses and other mechanical and mobile equipment used by the county school system;
(78) (80) "Switchboard operator-receptionist" means personnel employed to refer incoming
calls, to assume contact with the public, to direct and to give instructions as necessary, to operate
switchboard equipment and to provide clerical assistance;
(79) (81) "Truck driver" means personnel employed to operate light or heavy duty gasoline
and diesel-powered vehicles;
(80) (82) "Warehouse clerk" means personnel employed to be responsible for receiving,
storing, packing and shipping goods;
(81) (83) "Watchman" means personnel employed to protect school property against damage
or theft. Additional assignments may include operation of a small heating plant and routine cleaning
duties; and
(82) (84) "Welder" means personnel employed to provide acetylene or electric welding
services for a school system.
(j) In addition to the compensation provided for in section eight-a of this article, for service
personnel, each service employee is, notwithstanding any provisions in this code to the contrary,
entitled to all service personnel employee rights, privileges and benefits provided under this or any
other chapter of this code without regard to the employee's hours of employment or the methods or
sources of compensation.
(k) Service personnel whose years of employment exceed the number of years shown and
provided for under the state minimum pay scale set forth in section eight-a of this article may not be
paid less than the amount shown for the maximum years of employment shown and provided for in
the classification in which he or she is employed.
(l) The county boards shall review each service personnel employee job classification
annually and shall reclassify all service employees as required by the job classifications. The state
superintendent of schools may withhold state funds appropriated pursuant to this article for salaries
for service personnel who are improperly classified by the county boards. Further, the state
superintendent shall order county boards to correct immediately any improper classification matter
and with the assistance of the attorney general shall take any legal action necessary against any
county board to enforce the order.
(m) No service employee, without his or her written consent, may be reclassified by class
title, nor may a service employee, without his or her written consent, be relegated to any condition
of employment which would result in a reduction of his or her salary, rate of pay, compensation or
benefits earned during the current fiscal year or which would result in a reduction of his or her salary,
rate of pay, compensation or benefits for which he or she would qualify by continuing in the same
job position and classification held during that fiscal year and subsequent years.
(n) Any board failing to comply with the provisions of this article may be compelled to do
so by mandamus, and is liable to any party prevailing against the board for court costs and the
prevailing party's reasonable attorney fee, as determined and established by the court.
(o) Notwithstanding any provisions in this code to the contrary, service personnel who hold a continuing contract in a specific job classification and who are physically unable to perform the
job's duties as confirmed by a physician chosen by the employee shall be given priority status over
any employee not holding a continuing contract in filling other service personnel job vacancies if
qualified as provided in section eight-e of this article.
§18A-4-8a. Service personnel minimum monthly salaries.
(1) The minimum monthly pay for each service employee whose employment is for a period
of more than three and one-half hours a day shall be at least the amounts indicated in the "state
minimum pay scale pay grade I" and the minimum monthly pay for each service employee whose
employment is for a period of three and one-half hours or less a day shall be at least one-half the
amount indicated in the "state minimum pay scale pay grade I" set forth in this section:
Provided,
That beginning the first day of the second half of the employment term in the school year two
thousand one-two thousand two the minimum monthly pay for each service employee whose
employment is for a period of more than three and one-half hours a day shall be at least the amounts
indicated in the "state minimum pay scale pay grade II" and the minimum monthly pay for each
service employee whose employment is for a period of three and one-half hours or less a day shall
be at least one-half the amount indicated in the "state minimum pay scale pay grade II" set forth in
this section.
STATE MINIMUM PAY SCALE PAY GRADE I
ABCDEFGH
01,1001,1201,1601,2101,2601,3201,3501,420
11,1271,1471,1871,2371,2871,3471,3771,447
21,1541,1741,2141,2641,3141,3741,4041,474
31,1811,2011,2411,2911,3411,4011,4311,501
41,2081,2281,2681,3181,3681,4281,4581,528
51,2351,2551,2951,3451,3951,4551,4851,555
61,2621,2821,3221,3721,4221,4821,5121,582
71,2891,3091,3491,3991,4491,5091,5391,609
81,3161,3361,3761,4261,4761,5361,5661,636
91,3431,3631,4031,4531,5031,5631,5931,663
101,3701,3901,4301,4801,5301,5901,6201,690
111,3971,4171,4571,5071,5571,6171,6471,717
121,4241,4441,4841,5341,5841,6441,6741,744
131,4511,4711,5111,5611,6111,6711,7011,771
141,4781,4981,5381,5881,6381,6981,7281,798
151,5051,5251,5651,6151,6651,7251,7551,825
161,5321,5521,5921,6421,6921,7521,7821,852
171,5591,5791,6191,6691,7191,7791,8091,879
181,5861,6061,6461,6961,7461,8061,8361,906
191,6131,6331,6731,7231,7731,8331,8631,933
201,6401,6601,7001,7501,8001,8601,8901,960
211,6671,6871,7271,7771,8271,8871,9171,987
221,6941,7141,7541,8041,8541,9141,9442,014
231,7211,7411,7811,8311,8811,9411,9712,041
241,7481,7681,8081,8581,9081,9681,9982,068
251,7751,7951,8351,8851,9351,9952,0252,095
261,8021,8221,8621,9121,9622,0222,0522,122
271,8291,8491,8891,9391,9892,0492,0792,149
281,8561,8761,9161,9662,0162,0762,1062,176
291,8831,9031,9431,9932,0432,1032,1332,203
301,9101,9301,9702,0202,0702,1302,1602,230
311,9371,9571,9972,0472,0972,1572,1872,257
321,9641,9842,0242,0742,1242,1842,2142,284
331,9912,0112,0512,1012,1512,2112,2412,311
342,0182,0382,0782,1282,1782,2382,2682,338
352,0452,0652,1052,1552,2052,2652,2952,365
362,0722,0922,1322,1822,2322,2922,3222,392
Subject to a recommendation by the governor for a pay raise through the delivery of an
executive message to the Legislature and an appropriation by the Legislature for a pay raise, effective
the first day of July, one thousand nine hundred ninety-nine and thereafter, the minimum monthly
pay for each service employee whose employment is for a period of more than three and one-half
hours a day shall be at least the amounts indicated in the "state minimum pay scale pay grade II" and
the minimum monthly pay for each service employee whose employment is for a period of three and
one-half hours or less a day shall be at least one-half the amount indicated in the "state minimum pay
scale pay grade II" set forth in this section.
STATE MINIMUM PAY SCALE PAY GRADE II
Years of
Employment
Pay Grade
A B C D E F G H
01,1601,1801,2201,2701,3201,3801,4101,480
11,1881,2081,2481,2981,3481,4081,4381,508
21,2161,2361,2761,3261,3761,4361,4661,536
31,2441,2641,3041,3541,4041,4641,4941,564
41,2721,2921,3321,3821,4321,4921,5221,592
51,3001,3201,3601,4101,4601,5201,5501,620
61,3281,3481,3881,4381,4881,5481,5781,648
71,3561,3761,4161,4661,5161,5761,6061,676
81,3841,4041,4441,4941,5441,6041,6341,704
91,4121,4321,4721,5221,5721,6321,6621,732
101,4401,4601,5001,5501,6001,6601,6901,760
111,4681,4881,5281,5781,6281,6881,7181,788
121,4961,5161,5561,6061,6561,7161,7461,816
131,5241,5441,5841,6341,6841,7441,7741,844
141,5521,5721,6121,6621,7121,7721,8021,872
151,5801,6001,6401,6901,7401,8001,8301,900
161,6081,6281,6681,7181,7681,821,8581,928
171,6361,6561,6961,7461,7961,8561,8861,956
181,6641,6841,7241,7741,8241,8841,9141,984
191,6921,7121,7521,8021,8521,9121,9422,012
201,7201,7401,7801,8301,8801,9401,9702,040
211,7481,7681,8081,8581,9081,9681,9982,068
221,7761,7961,8361,8861,9361,9962,0262,096
231,8041,8241,8641,9141,9642,0242,0542,124
241,8321,8521,8921,9421,9922,0522,0822,152
251,8601,8801,9201,9702,0202,0802,1102,180
261,8881,9081,9481,9982,0482,1082,1382,208
27 1,916 1,936 1,976 2,026 2,076 2,1362,1662,236
281,9441,9642,0042,0542,1042,1642,1942,264
291,9721,9922,0322,0822,1322,1922,222 2,292
302,0002,0202,0602,1102,1602,2202,2502,320
312,0282,0482,0882,1382,1882,2482,2782,348
322,0562,0762,1162,1662,2162,2762,3062,376
332,0842,1042,1442,1942,2442,3042,3342,404
342,1122,1322,1722,2222,2722,3322,3622,432
352,1402,1602,2002,2502,3002,3602,3902,460
362,1682,1882,2282,2782,3282,3882,4182,488
If "state minimum pay scale pay grade II" becomes effective on the first day of July, one
thousand nine hundred ninety-nine, and the governor recommends a pay raise through the delivery
of an executive message to the Legislature and the Legislature appropriates money for a pay raise,
the minimum monthly pay for each service employee whose employment is for a period of more than
three and one-half hours a day shall be at least the amounts indicated in the "state minimum pay scale
pay grade III" and the minimum monthly pay for each service employee whose employment is for a period of three and one-half hours or less a day shall be at least one-half the amount indicated in
the "state minimum pay scale pay grade III" set forth in this section.
STATE MINIMUM PAY SCALE PAY GRADE III I
Years of
EmploymentPay Grade
A B C D E F G H
01,2201,2401,2801,3301,3801,4401,4701,540
11,2491,2691,3091,3591,4091,4691,4991,569
21,2781,2981,3381,3881,4381,4981,5281,598
31,3071,3271,3671,4171,4671,5271,5571,627
41,3361,3561,3961,4461,4961,5561,5861,656
51,3651,3851,4251,4751,5251,5851,6151,685
61,3941,4141,4541,5041,5541,6141,6441,714
71,4231,4431,4831,5331,5831,6431,6731,743
81,4521,4721,5121,5621,6121,6721,7021,772
91,4811,5011,5411,5911,6411,7011,7311,801
101,5101,5301,5701,6201,6701,7301,7601,830
111,5391,5591,5991,6491,6991,7591,7891,859
121,5681,5881,6281,6781,7281,7881,8181,888
131,5971,6171,6571,7071,7571,8171,8471,917
141,6261,6461,6861,7361,7861,8461,8761,946
151,6551,6751,7151,7651,8151,8751,9051,975
161,6841,7041,7441,7941,8441,9041,9342,004
171,7131,7331,7731,8231,8731,9331,9632,033
181,7421,7621,8021,8521,9021,9621,9922,062
191,7711,7911,8311,8811,9311,9912,0212,091
201,8001,8201,8601,9101,9602,0202,0502,120
211,8291,8491,8891,9391,9892,0492,0792,149
221,8581,8781,9181,9682,0182,0782,1082,178
231,8871,9071,9471,9972,0472,1072,1372,207
241,9161,9361,9762,0262,0762,1362,1662,236
251,9451,9652,0052,0552,1052,1652,1952,265
261,9741,9942,0342,0842,1342,1942,2242,294
272,0032,0232,0632,1132,1632,2232,2532,323
282,0322,0522,0922,1422,1922,2522,2822,352
292,0612,0812,1212,1712,2212,2812,3112,381
302,0902,1102,1502,2002,2502,3102,3402,410
312,1192,1392,1792,2292,2792,3392,3692,439
322,1482,1682,2082,2582,3082,3682,3982,468
332,1772,1972,2372,2872,3372,3972,4272,497
342,2062,2262,2662,3162,3662,4262,4562,526
352,2352,2552,2952,3452,3952,4552,4852,555
362,2642,2842,3242,3742,4242,4842,5142,584
372,2932,3132,3532,4032,4532,5132,5432,613
382,3222,3422,3822,4322,4822,5422,5722,642
392,3512,3712,4112,4612,5112,5712,6012,671
402,3802,4002,4402,4902,5402,6002,6302,700
STATE MINIMUM PAY SCALE PAY GRADE II
Years of
Employment Pay Grade
A B C D E F G H
01,2951,3151,3551,4051,4551,5151,5451,615
11,3241,3441,3841,4341,4841,5441,5741,644
21,3531,3731,4131,4631,5131,5731,6031,673
31,3821,4021,4421,4921,5421,6021,6321,702
41,4111,4311,4711,5211,5711,6311,6611,731
51,4401,4601,5001,5501,6001,6601,6901,760
61,4691,4891,5291,5791,6291,6891,7191,789
71,4981,5181,5581,6081,6581,7181,7481,818
81,5271,5471,5871,6371,6871,7471,7771,847
91,5561,5761,6161,6661,7161,7761,8061,876
101,5851,6051,6451,6951,7451,8051,8351,905
111,6141,6341,6741,7241,7741,8341,8641,934
121,6431,6631,7031,7531,8031,8631,8931,963
131,6721,6921,7321,7821,8321,8921,9221,992
141,7011,7211,7611,8111,8611,9211,9512,021
151,7301,7501,7901,8401,8901,9501,9802,050
161,7591,7791,8191,8691,9191,9792,0092,079
171,7881,8081,8481,8981,9482,0082,0382,108
181,8171,8371,8771,9271,9772,0372,0672,137
191,8461,8661,9061,9562,0062,0662,0962,166
201,8751,8951,9351,9852,0352,0952,1252,195
211,9041,9241,9642,0142,0642,1242,1542,224
221,9331,9531,9932,0432,0932,1532,1832,253
231,9621,9822,0222,0722,1222,1822,2122,282
241,9912,0112,0512,1012,1512,2112,2412,311
252,0202,0402,0802,1302,1802,2402,2702,340
262,0492,0692,1092,1592,2092,2692,2992,369
272,0782,0982,1382,1882,2382,2982,3282,398
282,1072,1272,1672,2172,2672,3272,3572,427
292,1362,1562,1962,2462,2962,3562,3862,456
302,1652,1852,2252,2752,3252,3852,4152,485
312,1942,2142,2542,3042,3542,4142,4442,514
322,2232,2432,2832,3332,3832,4432,4732,543
332,2522,2722,3122,3622,4122,4722,5022,572
342,2812,3012,3412,3912,4412,5012,5312,601
352,3102,3302,3702,4202,4702,5302,5602,630
362,3392,3592,3992,4492,4992,5592,5892,659
372,3682,3882,4282,4782,5282,5882,6182,688
382,3972,4172,4572,5072,5572,6172,6472,717
392,4262,4462,4862,5362,5862,6462,6762,746
402,4552,4752,5152,5652,6152,6752,7052,775
CLASS TITLEPAY GRADE
Accountant ID
Accountant IIE
Accountant IIIF
Accounts Payable SupervisorG
Aide IA
Aide IIB
Aide IIIC
Aide IVD
Audiovisual TechnicianC
AuditorG
Autism MentorE
Braille or Sign Language SpecialistE
Bus OperatorD
BuyerF
CabinetmakerG
Cafeteria ManagerD
Carpenter IE
Carpenter IIF
Chief MechanicG
Clerk IB
Clerk IIC
Computer OperatorE
Cook IA
Cook IIB
Cook IIIC
Crew LeaderF
Custodian IA
Custodian IIB
Custodian IIIC
Custodian IVD
Director or Coordinator of ServicesH
DraftsmanD
Electrician IF
Electrician IIG
Electronic Technician IF
Electronic Technician IIG
Executive SecretaryG
Food Services SupervisorG
ForemanG
General MaintenanceC
GlazierD
Graphic ArtistD
GroundsmanB
HandymanB
Heating and Air Conditioning Mechanic IE
Heating and Air Conditioning Mechanic IIG
Heavy Equipment OperatorE
Inventory SupervisorD
Key Punch OperatorB
LocksmithG
Lubrication ManC
MachinistF
Mail ClerkD
Maintenance Clerk C
MasonG
MechanicF
Mechanic AssistantE
Office Equipment Repairman IF
Office Equipment Repairman IIG
PainterE
ParaprofessionalF
Payroll SupervisorG
Plumber IE
Plumber IIG
Printing OperatorB
Printing SupervisorD
ProgrammerH
Roofing/Sheet Metal MechanicF
Sanitation Plant OperatorF
School Bus SupervisorE
Secretary ID
Secretary IIE
Secretary IIIF
Supervisor of MaintenanceH
Supervisor of TransportationH
Switchboard Operator-ReceptionistD
Truck DriverD
Warehouse ClerkC
WatchmanB
WelderF
(2) An additional ten twelve dollars per month shall be added to the minimum monthly pay
of each service employee who holds a high school diploma or its equivalent.
(3) An additional ten dollars per month also shall be added to the minimum monthly pay of
each service employee for each of the following:
(A) A service employee who holds twelve college hours or comparable credit obtained in a
trade or vocational school as approved by the state board;
(B) A service employee who holds twenty-four college hours or comparable credit obtained in a trade or vocational school as approved by the state board;
(C) A service employee who holds thirty-six college hours or comparable credit obtained in
a trade or vocational school as approved by the state board;
(D) A service employee who holds forty-eight college hours or comparable credit obtained
in a trade or vocational school as approved by the state board;
(E) A service employee who holds sixty college hours or comparable credit obtained in a
trade or vocational school as approved by the state board; and
(F) A service employee who holds seventy-two college hours or comparable credit obtained
in a trade or vocational school as approved by the state board;
(G) A service employee who holds eighty-four college hours or comparable credit obtained
in a trade or vocational school as approved by the state board;
(H) A service employee who holds ninety-six college hours or comparable credit obtained
in a trade or vocational school as approved by the state board;
(I) A service employee who holds one hundred eight college hours or comparable credit
obtained in a trade or vocational school as approved by the state board;
(J) A service employee who holds one hundred twenty college hours or comparable credit
obtained in a trade or vocational school as approved by the state board;
(K) A service employee who holds a bachelor's degree; and
(L) A service employee who holds a master's degree.
(4) When any part of a school service employee's daily shift of work is performed between
the hours of six o'clock p.m. and five o'clock a.m. the following day, the employee shall be paid no
less than an additional ten dollars per month and one half of the pay shall be paid with local funds.
(5) Any service employee required to work on any legal school holiday shall be paid at a rate
one and one-half times the employee's usual hourly rate.
(6) Any full-time service personnel required to work in excess of their normal working day
during any week which contains a school holiday for which they are paid shall be paid for the
additional hours or fraction of the additional hours at a rate of one and one-half times their usual
hourly rate and paid entirely from county board funds.
(7) No service employee may have his or her daily work schedule changed during the school
year without the employee's written consent and the employee's required daily work hours may not
be changed to prevent the payment of time and one-half wages or the employment of another
employee.
(8) The minimum hourly rate of pay for extra duty assignments as defined in section eight-b
of this article shall be no less than one seventh of the employee's daily total salary for each hour the employee is involved in performing the assignment and paid entirely from local funds: Provided,
That an alternative minimum hourly rate of pay for performing extra duty assignments within a
particular category of employment may be utilized if the alternate hourly rate of pay is approved
both by the county board and by the affirmative vote of a two-thirds majority of the regular full-time
employees within that classification category of employment within that county: Provided, however,
That the vote shall be by secret ballot if requested by a service personnel employee within that
classification category within that county. The salary for any fraction of an hour the employee is
involved in performing the assignment shall be prorated accordingly. When performing extra duty
assignments, employees who are regularly employed on a one-half day salary basis shall receive the
same hourly extra duty assignment pay computed as though the employee were employed on a full-
day salary basis.
(9) The minimum pay for any service personnel employees engaged in the removal of
asbestos material or related duties required for asbestos removal shall be their regular total daily rate
of pay and no less than an additional three dollars per hour or no less than five dollars per hour for
service personnel supervising asbestos removal responsibilities for each hour these employees are
involved in asbestos related duties. Related duties required for asbestos removal include, but are not
limited to, travel, preparation of the work site, removal of asbestos decontamination of the work site,
placing and removal of equipment and removal of structures from the site. If any member of an
asbestos crew is engaged in asbestos related duties outside of the employee's regular employment
county, the daily rate of pay shall be no less than the minimum amount as established in the
employee's regular employment county for asbestos removal and an additional thirty dollars per each
day the employee is engaged in asbestos removal and related duties. The additional pay for asbestos
removal and related duties shall be payable entirely from county funds. Before service personnel
employees may be utilized in the removal of asbestos material or related duties, they shall have
completed a federal Environmental Protection Act approved training program and be licensed. The
employer shall provide all necessary protective equipment and maintain all records required by the
Environmental Protection Act.
(10) For the purpose of qualifying for additional pay as provided in section eight, article five
of this chapter, an aide shall be considered to be exercising the authority of a supervisory aide and
control over pupils if the aide is required to supervise, control, direct, monitor, escort or render
service to a child or children when not under the direct supervision of certificated professional
personnel within the classroom, library, hallway, lunchroom, gymnasium, school building, school
grounds or wherever supervision is required. For purposes of this section, "under the direct
supervision of certificated professional personnel" means that certificated professional personnel is present, with and accompanying the aide.
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-13c. Expenditure of racetrack video lottery distribution.
(a) Funds received by the racing commission pursuant to subdivision (6), subsection (c),
section ten, article twenty-two-a, chapter twenty-nine of this code,
and subsection (f), section 10b,
article twenty-two-a, chapter twenty-nine of this code, after the effective date of this section together
with the balance in the bank account previously established by the commission to receive those
funds shall be deposited in a banking institution of its choice in a special account to be known as
"West Virginia Racing Commission Racetrack Video Lottery Account." Notice of the amount, date
and place of each deposit shall be given by the racing commission, in writing, to the state treasurer.
(b) Funds in this account shall be allocated and expended as follows:
(1) For each fiscal year, the first eight hundred thousand dollars deposited in the separate
account plus the amount then remaining of the June thirtieth, one thousand nine hundred
ninety-seven, balance in the separate account previously established for the West Virginia breeders
classic under section thirteen of this article, shall be used by the commission for promotional
activities, advertising, administrative costs and purses for the West Virginia thoroughbred breeders
classic, which shall give equal consideration to all horses qualifying under the West Virginia
breeders program for each stake race, based solely on the horses' sex, age and earnings.
(2) For each fiscal year, the next two hundred thousand dollars deposited into the separate
account shall be used by the commission for promotional activities and purses for open stake races
for a race event to be known as the West Virginia derby to be held at a thoroughbred racetrack which
does not participate in the West Virginia thoroughbred development fund.
(3) For each fiscal year, once the amounts provided in subdivisions (1) and (2) of this
subsection (b) have been deposited into separate bank accounts for use in connection with the West
Virginia thoroughbred breeders classics and the West Virginia derby, the commission shall return
to each racetrack all additional amounts deposited which originate during that fiscal year from each
respective racetrack pursuant to subdivision (6), subsection (c), section ten, article twenty-two-a,
chapter twenty-nine of this code, which returned excess funds shall be used as follows:
(A) For each dog racetrack, one half of the returned excess funds shall be used for capital
improvements at the racetrack and one half of the returned excess funds shall be deposited into the
West Virginia racing commission special account - West Virginia greyhound breeding development
fund.
(B) At those thoroughbred racetracks that have participated in the West Virginia thoroughbred development fund for a period of more than four consecutive calendar years prior to
the thirty-first day of December, one thousand nine hundred ninety-two, one half of the returned
excess funds shall be used for capital improvements at the licensee's racetrack and one half of the
returned excess funds shall be equally divided between the West Virginia thoroughbred breeders
classic and the West Virginia thoroughbred development fund.
(C) At those thoroughbred horse racetracks which do not participate in the West Virginia
thoroughbred development fund, one half of the returned excess funds shall be used for capital
improvements at the licensee's racetrack and one half of the returned excess funds shall be used for
purses for the open stakes race event known as the West Virginia derby.
(c) All expenditures that are funded under this section must be approved in writing by the
West Virginia racing commission before the funds are expended for any of the purposes authorized
by this section.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18. State lottery fund; appropriations and deposits; not part of general revenue; no
transfer of state funds after initial appropriation; use and repayment of initial
appropriation; allocation of fund for prizes, net profit and expenses; surplus; state
lottery education fund; state lottery senior citizens fund; allocation and appropriation
of net profits.
(a) There is hereby continued a special revenue fund in the state treasury which shall be
designated and known as the "state lottery fund". The fund
shall consist consists of all
appropriations to the fund and all interest earned from investment of the fund and any gifts, grants
or contributions received by the fund. All revenues received from the sale of lottery tickets,
materials and games shall be deposited with the state treasurer and placed into the "state lottery
fund". The revenue shall be disbursed in the manner provided in this section for the purposes stated
in this section and shall not be treated by the auditor and treasurer as part of the general revenue of
the state.
(b) No appropriation, loan or other transfer of state funds may be made to the commission
or lottery fund after the initial appropriation.
(c) A minimum annual average of forty-five percent of the gross amount received from each
lottery shall be allocated and disbursed as prizes.
(d) Not more than fifteen percent of the gross amount received from each lottery
shall may
be allocated to and may be disbursed as necessary for fund operation and administration expenses:
Provided, That for the period beginning the first day of January, two thousand two, through the thirtieth day of June, two thousand three, not more than seventeen percent of the gross amount
received from each lottery shall be allocated to and may be disbursed as necessary for fund operation
and administration expenses.
(e) The excess of the aggregate of the gross amount received from all lotteries over the sum
of the amounts allocated by subsections (c) and (d) of this section shall be allocated as net profit.
In the event that the percentage allotted for operations and administration generates a surplus, the
surplus shall be allowed to accumulate to an amount not to exceed two hundred fifty thousand
dollars. On a monthly basis, the director shall report to the joint committee on government and
finance of the Legislature any surplus in excess of two hundred fifty thousand dollars and remit to
the state treasurer the entire amount of those surplus funds in excess of two hundred fifty thousand
dollars which shall be allocated as net profit.
(f) After first satisfying the requirements for funds dedicated to the school building debt
service fund in subsection (h) of this section to retire the ten-year bonds authorized to be issued
pursuant to section eight, article nine-d, chapter eighteen of this code, and then satisfying the
requirements for funds dedicated to the education, arts, sciences and tourism debt service fund in
subsection (i) of this section to retire the bonds authorized to be issued pursuant to section eleven-a,
article six, chapter five of this code, the Legislature shall annually appropriate all of the remaining
amounts allocated as net profits in subsection (e) of this section, in such proportions as it considers
beneficial to the citizens of this state, to: (1) The lottery education fund created in subsection (g) of
this section; (2) the school construction fund created in section six, article nine-d, chapter eighteen
of this code; (3) the lottery senior citizens fund created in subsection (j) of this section; and (4) the
division of natural resources created in section three, article one, chapter twenty of this code and the
West Virginia development office as created in section one, article two, chapter five-b of this code,
in accordance with subsection (k) of this section. No transfer to any account other than the school
building debt service account and the education, arts, sciences and tourism debt service fund may
be made in any period of time in which a default exists in respect to debt service on bonds issued by
the school building authority and the state building commission which are secured by lottery
proceeds. No additional transfer
shall may be made to any account other than the school building
debt service account and the education, arts, sciences and tourism debt service fund when net profits
for the preceding twelve months are not at least equal to one hundred fifty percent of debt service
on bonds issued by the school building authority and the state building commission which are
secured by net profits.
(g) There is hereby continued a special revenue fund in the state treasury which shall be
designated and known as the "lottery education fund." The fund shall consist of the amounts allocated pursuant to subsection (f) of this section, which shall be deposited into the lottery education
fund by the state treasurer. The lottery education fund shall also consist of all interest earned from
investment of the lottery education fund and any other appropriations, gifts, grants, contributions or
moneys received by the lottery education fund from any source. The revenues received or earned
by the lottery education fund shall be disbursed in the manner provided below and
shall may not be
treated by the auditor and treasurer as part of the general revenue of the state. Annually, the
Legislature shall appropriate the revenues received or earned by the lottery education fund to the
state system of public and higher education for these educational programs it considers beneficial
to the citizens of this state.
(h) On or before the twenty-eighth day of each month through the twentieth day of June, two
thousand five, the lottery director shall allocate to the school building debt service fund created
pursuant to the provisions of section six, article nine-d, chapter eighteen of this code, as a first
priority from the net profits of the lottery for the preceding month, an amount equal to one tenth of
the projected annual principal, interest and coverage ratio requirements on any and all revenue bonds
and refunding bonds issued, or to be issued, on or after the first day of April, one thousand nine
hundred ninety-four, as certified to the lottery director in accordance with the provisions of section
six, article nine-d, chapter eighteen of this code. In no event shall the monthly amount allocated
exceed one million eight hundred thousand dollars, nor
shall may the total allocation of the net
profits to be paid into the school building debt service fund, as provided in this section, in any fiscal
year exceed the lesser of the principal and interest requirements certified to the lottery director or
eighteen million dollars. In the event there are insufficient funds available in any month to transfer
the amount required to be transferred pursuant to this subsection to the school debt service fund, the
deficiency shall be added to the amount transferred in the next succeeding month in which revenues
are available to transfer the deficiency. A lien on the proceeds of the state lottery fund up to a
maximum amount equal to the projected annual principal, interest and coverage ratio requirements,
not to exceed twenty-seven million dollars annually, may be granted by the school building authority
in favor of the bonds it issues which are secured by the net lottery profits.
When the school improvement bonds, secured by profits from the lottery and deposited in
the school debt service fund, mature, the lottery director shall allocate monthly, from the net profits
of the lottery for the preceding month, an amount equal to one million five hundred thousand dollars
into the school construction fund created pursuant to the provisions of section six, article nine-d,
chapter eighteen of this code.
(i)
On Beginning on or before the twenty-eighth day of
each month July, one thousand nine
hundred ninety-six, and continuing on or before the twenty-eighth day of each succeeding month thereafter through the twenty-eighth day of June, two thousand twenty-one, the lottery director shall
allocate to the education, arts, sciences and tourism debt service fund created pursuant to the
provisions of section eleven-a, article six, chapter five of this code, as a second priority from the net
profits of the lottery for the preceding month, an amount equal to one tenth of the projected annual
principal, interest and coverage ratio requirements on any and all revenue bonds and refunding bonds
issued, or to be issued, on or after the first day of April, one thousand nine hundred ninety-six, as
certified to the lottery director in accordance with the provisions of that section. In no event
shall
may the monthly amount allocated exceed one million dollars nor
shall may the total allocation paid
into the education, arts, sciences and tourism debt service fund, as provided in this section, in any
fiscal year exceed the lesser of the principal and interest requirements certified to the lottery director
or ten million dollars. In the event there are insufficient funds available in any month to transfer the
amount required pursuant to this subsection to the education, arts, sciences and tourism debt service
fund, the deficiency shall be added to the amount transferred in the next succeeding month in which
revenues are available to transfer the deficiency. A second-in-priority lien on the proceeds of the
state lottery fund up to a maximum amount equal to the projected annual principal, interest and
coverage ratio requirements, not to exceed fifteen million dollars annually, may be granted by the
state building commission in favor of the bonds it issues which are secured by the net lottery profits.
(j) There is hereby continued a special revenue fund in the state treasury which shall be
designated and known as the "lottery senior citizens fund." The fund shall consist of the amounts
allocated pursuant to subsection (f) of this section, which
amounts shall be deposited into the lottery
senior citizens fund by the state treasurer. The lottery senior citizens fund shall also consist of all
interest earned from investment of the lottery senior citizens fund and any other appropriations, gifts,
grants, contributions or moneys received by the lottery senior citizens fund from any source. The
revenues received or earned by the lottery senior citizens fund shall
be distributed in the manner
provided below and may not be treated by the auditor or treasurer as part of the general revenue of
the state. Annually, the Legislature shall appropriate the revenues received or earned by the lottery
senior citizens fund to such senior citizens medical care and other programs as it considers beneficial
to the citizens of this state.
(k) The division of natural resources and the West Virginia development office, as
appropriated by the Legislature, may use the amounts allocated to them pursuant to subsection (f)
of this section for one or more of the following purposes: (1) The payment of any or all of the costs
incurred in the development, construction, reconstruction, maintenance or repair of any project or
recreational facility, as these terms are defined in section four, article five, chapter twenty of this
code, pursuant to the authority granted to it under article five, chapter twenty of this code; (2) the payment, funding or refunding of the principal of, interest on or redemption premiums on any bonds,
security interests or notes issued by the parks and recreation section of the division of natural
resources under article five, chapter twenty of this code; or (3) the payment of any advertising and
marketing expenses for the promotion and development of tourism or any tourist facility or attraction
in this state.
§29-22-18a. State excess lottery revenue fund.
(a) There is hereby created a special revenue fund in the state treasury which shall be
designated and known as the "state excess lottery revenue fund". The fund shall consist of all
appropriations to the fund and all interest earned from investment of the fund and any gifts, grants
or contributions received by the fund. All revenues received from the provisions of sections ten-b
and ten-c, article twenty-nine-a of this chapter and section fifty-three, article twenty-two-b of this
chapter shall be deposited with the state treasurer and placed into the "state excess lottery revenue
fund". The revenue shall be disbursed in the manner provided in this section for the purposes stated
in this section and shall not be treated by the auditor and treasurer as part of the general revenue of
the state.
(b) For the fiscal year beginning the first day of July two thousand one, the commission shall
deposit: (1) Five million five hundred thousand dollars into the account hereby created in the
treasurer's office to be known as the "education improvement fund" for appropriation by the
Legislature to the "promise scholarship fund" created in section seven, article seven, chapter
eighteen-c of this code; (2) up to twenty-five million to the school building debt service fund created
in section six, article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (3) up
to twenty-five million in the West Virginia infrastructure fund created in section nine, article
fifteen-a, chapter thirty-one of this code to be spent in accordance with the provisions of that article;
and (4) up to nineteen million for higher education and park improvements. For the fiscal year
beginning the first day of July two thousand two, the commission shall deposit: (1) Ten million
dollars into the account hereby created in the treasurer's office to be known as the "education
improvement fund" for appropriation by the Legislature to the "promise scholarship fund" created
in section seven, article seven, chapter eighteen-c of this code; (2) up to twenty-five million to the
school building debt service fund created in section six, article nine-d, chapter eighteen of this code
for the issuance of revenue bonds; (3) up to fifty million in the West Virginia infrastructure fund
created in section nine, article fifteen-a, chapter thirty-one of this code to be spent in accordance with
the provisions of that article; and (4) up to nineteen million for higher education and park
improvements.
For the fiscal year beginning the first day of July two thousand three, the
commission shall deposit: (1) Seventeen million dollars into the account hereby created in the treasurer's office to be known as the "education improvement fund" for appropriation by the
Legislature to the "promise scholarship fund" created in section seven, article seven, chapter
eighteen-c of this code; (2) up to twenty-five million to the school building debt service fund created
in section six, article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (3) up
to fifty million in the West Virginia infrastructure fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the provisions of that article; and (4)
up to nineteen million for higher education and park improvements.
For the fiscal year beginning
the first day of July two thousand four, and subsequent fiscal years, the commission shall deposit:
(1) Twenty-seven million dollars into the account hereby created in the treasurer's office to be
known as the "education improvement fund" for appropriation by the Legislature to the "promise
scholarship fund" created in section seven, article seven, chapter eighteen-c of this code; (2) up to
twenty-five million to the school building debt service fund created in section six, article nine-d,
chapter eighteen of this code for the issuance of revenue bonds; (3) up to fifty million in the West
Virginia infrastructure fund created in section nine, article fifteen-a, chapter thirty-one of this code
to be spent in accordance with the provisions of that article; and (4) up to nineteen million for higher
education and park improvements.
The commission shall deposit any remaining funds each fiscal
year in the state general revenue fund: Provided, That the Legislature considers the following as
priorities in the expenditure of the general revenue funds:
(1) Providing salary and/or increment increases for professional educators in an effort to
move average salaries closer to the national average;
(2) Providing adequate funding for the public employees insurance agency; and
(3) Providing funding to help address the shortage of qualified teachers and substitutes in
areas of need, both in number of teachers and in subject matter areas.
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§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)Video lottery terminals licensed for placement in this state shall 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 may accept any
denominations of coins and bills determined by the commission to be consistent with the
denominations commonly used by players, and all coin and bill acceptors must shall 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 considered 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. 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 shall not may allow up to five 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
shall 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 the 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 shall be obtained prior
to applying for testing of such the 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 would allow 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
the deduction shall be is the net terminal income. The amount deducted for administrative costs and
expenses of the commission may not exceed four percent of gross terminal income: Provided, That
for all fiscal years beginning on or after the first day of July, two thousand one, four percent of any
amount of gross terminal income received in excess of the amount of gross terminal income received
during the fiscal year ending on the thirtieth day of June, two thousand one, shall be deposited into
a special revenue account in the state treasury and may not expended except upon appropriation of
the Legislature.
(c) Net terminal income shall be divided as set out in this subsection. For all fiscal years
beginning on or after the first day of July, two thousand one, any amount of net terminal income
received in excess of the amount of net terminal income received during the fiscal year ending on
the thirtieth day of June, two thousand one, shall be divided as set out in section ten-b of this article.
The licensed racetrack's share shall be is 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 the
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 racing commission shall receive one percent of the net terminal
income which shall be deposited and used as provided in section thirteen-c, 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 twelve, article two, 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 veterans 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
cultural facilities and capitol resources matching grant program fund created under section three,
article one of this chapter.
(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 The 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 shall 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 the
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 shall 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-10b. Distribution of excess net terminal income.
(a) For all years beginning on or after the first day of July, two thousand one, any amount of
net terminal income generated annually by a licensed racetrack in excess of the amount of net
terminal income generated by that licensed racetrack during the fiscal year ending on the thirtieth
day of June, two thousand one, shall be divided as follows:
(1) The commission shall receive forty-two percent of net terminal income, which the
commission shall deposit in the state excess lottery revenue fund created in section eighteen-a, article
twenty-two of this chapter;
(2) Seven 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) Any amount by which the total amount under this section and subdivision three,
subsection c, section ten of this article is 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, the 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) Any amount by which the total amount under this section and subdivision three,
subsection c, section ten of this article is 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 racing commission shall receive one percent of the net terminal
income which shall be deposited and used as provided in section thirteen-c, article twenty-three,
chapter nineteen of this code;
(7) A licensee shall receive forty-two percent of net terminal income;
(8) The tourism promotion fund established in section twelve, article two, chapter five-b of
this code shall receive three percent of the net terminal income; and
(9) One percent of the 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
cultural facilities and capitol resources matching grant program fund created under section three,
article one of this chapter.
(b) The commission may establish orderly and effective procedures for the collection and
distribution of funds under this section in accordance with the provisions of this section and section
ten of this article.
§29-22A-10c. Surcharge; capital reinvestment fund.
(a) For all fiscal years beginning on or after the first day of July, two thousand one, there
shall be imposed a surcharge of ten percent against the excess of total net terminal income generated
from a licensed racetrack for that fiscal year over total net terminal income from that licensed
racetrack for the fiscal year ending the thirtieth day of June two thousand one.
(b) A capital reinvestment fund is hereby created within the lottery fund. Forty-two percent
of the surcharge amount attributable to each racetrack shall be retained by the commission and
deposited into a separate capital reinvestment account for that licensed racetrack. For each dollar
expended by a licensed racetrack for capital improvements, having a useful life of fifteen or more
years after the first day of April, two thousand one, the licensed racetrack shall receive one dollar
in recoupment from its capital reinvestment fund account. If a licensed racetrack's unrecouped
capital improvements exceed its capital reinvestment fund account at the end of any fiscal year, the
excess improvements may be carried forward to three subsequent fiscal years.
(c) Fifty-eight percent of the surcharge amount plus any moneys remaining in a racetrack's
capital reinvestment fund account at the end of any fiscal year shall be deposited in the state excess lottery revenue fund created in section eighteen-a, article twenty-two of this chapter.
ARTICLE 22B. LIMITED VIDEO LOTTERY.
Part 1. General Provisions.
§29-22B-101. Short title.
This article shall be known and may be cited as the "Limited Video Lottery Act".
§29-22B-102. Authorization for limited video lottery; regulation by lottery commission.
Limited video lottery is hereby authorized and may be operated and maintained subject to
the provisions of this article. The limited video lottery authorized by this article, being a lottery, is
subject to regulation by the West Virginia lottery commission.
§29-22B-103. Exceptions.
(a) Nothing in this article shall be construed in any way to modify, amend, or otherwise affect
the validity of any provisions regulating charitable bingo and raffles as set forth in articles 47-20-1,
et seq., and 47-21-1,
et seq., of this code.
(b) Nothing contained in this article shall be construed to modify, amend, or otherwise affect
the validity of any provisions regulating racetrack video lottery as set forth in article 22A of this
chapter.
Part 2. Legislative Findings.
§29-22B-201. Legislative finding; constitutional authority; limited video lottery is a lottery.
The Legislature finds and declares that:
(1) The Constitution grants to the Legislature the authority to establish, by general law,
lotteries which are regulated, controlled, owned and operated by the state of West Virginia; and
(2) The limited video lottery authorized by this article is a "lottery" as that term is commonly
understood and as that term is used in the West Virginia Constitution, article 6, section 36. The
limited video lottery authorized as video lottery games in this article is a system of lottery games that
utilize advanced computer technology.
§29-22B-202. Legislative finding; state ownership of video lottery through outright
ownership or possession of a proprietary interest in computer
hardware and software.
The Legislature further finds and declares that:
(1) The state can control, own and operate a video lottery by possessing a proprietary interest
in the main logic boards, all erasable, programmable read-only memory chips used in any video
lottery equipment or games, and software consisting of computer programs, documentation and other
related materials necessary for the video lottery system to be operated;
(2) The state may possess a proprietary interest in video lottery game software, for purposes of this article, through outright ownership or through an exclusive product license agreement with
a manufacturer whereby (A) the manufacturer retains copyrighted ownership of the software, (B) the
product license granted to the state is nontransferable, and (C) the agreement authorizes the state to
run the software program, solely for its own use, on the state's central equipment unit and electronic
video terminals networked to the central equipment unit; and
(3) The state can control and regulate a video lottery if the state (A) restricts licensure to a
limited number of video lottery terminals at qualified locations, (B) extends strict and exclusive state
regulation to all persons, locations, practices and associations related to the operation of licensed
limited video lottery facilities, and (C) provides comprehensive law enforcement supervision of
limited video lottery activities.
§29-22B-203. Legislative finding; license to participate in limited video lottery is a privilege.
The Legislature further finds and declares that:
(1) A person seeking a license or other affirmative lottery commission approval has no right
to a license or to the granting of the approval sought. Any license issued or other commission
approval granted pursuant to the provisions of this article is a revocable privilege;
(2) The licensing, control and regulation of limited video lottery by the state does not create
(A) any property right in a license issued pursuant to this article, (B) any right to transfer or
encumber a license, (C) any vested right in a license, or (D) the accrual of any value to the privilege
of participation in any limited video lottery activity; and
(3) That the privilege of participation in limited video lottery operations is conditioned upon
(A) the proper and continuing individual qualification of an applicant or licensee, and (B) the
discharge of the affirmative responsibility of each licensee to provide the regulatory and
investigatory authorities with any assistance and information necessary to assure that the policies
declared by this article are achieved.
Part 3. Definitions.
§29-22B-301. Applicability of definitions.
For the purposes of this article, the words or terms defined in this part 3, and any variation
of those words or terms required by the context, have the meanings ascribed to them in this part 3.
These definitions are applicable unless a different meaning clearly appears from the context.
§29-22B-302. Applicant defined.
"Applicant" means a person applying for a license required by this article for lawful
participation in limited video lottery.
§29-22B-303. Associated equipment defined.
"Associated equipment" means any hardware located on the premises of a video lottery retailers, other than the video lottery terminals themselves, that is connected to the video lottery
terminal or to the central computer for the purpose of performing communication, validation or other
functions. "Associated equipment" does not include the communication equipment and facilities
of a regulated public utility.
§29-22B-304. Background investigation defined.
"Background investigation" means a security, criminal and credit investigation of an
applicant who has applied for the issuance or renewal of a license pursuant to this article, or a
licensee who holds a current license.
§29-22B-305. Central computer, central control computer or central site system defined.
"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.
§29-22B-306. Commission or state lottery commission defined.
"Commission" or "state lottery commission" means the West Virginia lottery commission
created by article 22 of this chapter.
§29-22B-307. Control defined.
"Control" means the authority to direct the management and policies of an applicant or a
license holder.
§29-22B-308. Director defined.
"Director" means the individual appointed by the governor to provide management and
administration necessary to direct the state lottery office.
§29-22B-309. Disable or terminal disable defined.
"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.
§29-22B-310. Display defined.
"Display" means the visual presentation of video lottery game features on the video display
monitor or screen of a video lottery terminal.
§29-22B-311. EPROM and erasable programmable read-only memory chips defined.
"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.
§29-22B-312. Identification document defined.
"Identification document" means a document made or issued by or under the authority of the
United States government, a state, a political subdivision of a state, a foreign government or a
political subdivision of a foreign government, which, when completed with information concerning
a particular individual, is of the type intended or commonly accepted for the purpose of identifying
individuals.
§29-22B-313. Indirect ownership defined.
"Indirect ownership" means an interest a person owns in an entity or in property solely as a
result of application of constructive ownership rules without regard to any direct ownership interest
(or other beneficial interest) in the entity or property. "Indirect ownership" shall be determined
under the same rules applicable to determining whether a gain or loss between related parties is
recognized for federal income tax purposes.
§29-22B-314. License defined.
"License" or "video lottery license" means authorization granted by the commission pursuant
to this article to a person permitting that person to engage in the activity for which the license was
issued. "License used in this article" means a license issued by the commission as provided in this
article that has not expired or been cancelled, revoked or suspended by the director or the
commission.
§29-22B-315. Location defined.
"Location" means a restricted access adult-only facility located on premises in which the
limited video lottery retailer holds a license as provided in section 22B-501 of this article.
§29-22B-316. Limited video lottery retailer defined.
"Limited video lottery retailer" means a person who holds either a valid license issued under
article 60-7-1,
et seq., of this code, to operate a private club, or who holds a valid Class A license
issued under article 11-16-1,
et seq., of this code, to operate a business where nonintoxicating beer
is sold for consumption on the premises, or who holds both licenses, and the person also holds a
valid limited video lottery retailer's license issued under this article.
§29-22B-317. Lottery defined.
"Lottery" means the public gaming systems or games regulated, controlled, owned and
operated by the state lottery commission as provided in this article and in articles 29-22-1,
et seq.,
29-22A-1,
et seq., and article 29-25-1,
et seq.
§29-22B-318. Manufacturer defined.
"Manufacturer" means any person holding a license issued under this article by the
commission which allows the person 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 the video lottery terminal is housed, and whose product is intended for sale, lease or other
assignment to a person who is issued a permit under this under this article allowing the person to
purchase or lease video lottery terminals from a manufacturer.
§29-22B-319. National criminal history background check system
defined.
"National criminal history background check system" means the criminal history record
system maintained by the Federal Bureau of Investigation based on fingerprint identification or any
other method of positive identification.
§29-22B-320. Net terminal income and gross terminal income defined.
"Net terminal income" means the portion of gross terminal income collected by the
commission from the permittees determined to be net terminal income as calculated under subsection
22B-1408(a) of this article. "Gross terminal income" means the total amount of cash inserted into
video lottery terminals operated by a licensee, minus the total value of game credits which are
cleared from the video lottery terminals in exchange for winning redemption tickets. A licensee may
not deduct costs or expenses related to the operation of video lottery games from net terminal
income.
§29-22B-321. Operator defined.
"Operator" means a person holding an operator's license granted under this article by the
commission allowing the person to: (1) Own or lease a specified number of video lottery terminals
from one or more manufacturers; (2) service and repair those video lottery terminals; and (3) enter
into contracts with limited video lottery retailers for placement of those video lottery terminals in
a restricted access adult-only facility located on the premises of the limited video lottery retailers.
§29-22B-322. Own defined.
"Own" means any beneficial or proprietary interest in any property and includes, but is not
limited to, any direct or indirect beneficial or proprietary interest in any business of an applicant or
licensee.
§29-22B-323. Permit defined.
"Permit" means the authorization issued by the commission allowing a person licensed as
an permittee under this article to own or lease a specified number of video lottery terminals.
§29-22B-324. Permittee defined.
"Permittee" means a licensed operator or a licensed limited video lottery retailer who has a
permit for video lottery terminals issued under part 11 of this article.
§29-22B-325. Person defined.
"Person" means any natural person, and any corporation, association, partnership, limited
partnership, limited liability company or other entity, regardless of its form, structure or nature, other
than a government agency or instrumentality.
§29-22B-326. Player defined.
"Player" means a person who plays a video lottery game on a video lottery terminal at a
location licensed by the commission to have video lottery on its premises.
§29-22B-327. Resident of this state defined.
"Resident of this state" means an individual who: (1) Maintains a bona fide full time primary
place of abode in this state; (2) is not registered to vote in any other state; (3) if licensed to drive,
holds a valid driver's license in this state and does not hold a current driver's license issued by any
other state; (4) timely filed personal income tax returns as a resident of this state for the four
preceding calendar years (determined by including any authorized extension of time for filing the
return); and (5) does not claim to be a resident of any other state for any purpose whatsoever.
§29-22B-328. Restricted access adult-only facility defined.
"Restricted access adult-only facility" means:
(a)(1) A private club licensed under article 60-7-1,
et seq., of this code that is licensed under
this article by the commission to allow its members and their guests to play video lottery games:
Provided, That when the private club is a restaurant frequented by minors and their parents, video
lottery terminals shall be located in a separate room suitable for the location of video lottery
terminals with adult-only restricted access, the interior of which is not visible to persons outside the
room; and
(2) A place of business that: (A) Has a "Class A" license issued under article 11-16-1,
et
seq., of this code to sell nonintoxicating beer for consumption on the premises; (B) derives at least
forty percent of its annual gross receipts at that location from sales of nonintoxicating beer to
consumers and of such sales, at least eighty percent are sales of nonintoxicating beer for
consumption on the premises; (C) maintains a suitable kitchen and dining facility and related
equipment for serving meals for on-premises consumption; (D) regularly prepares and sells meals
for consumption on the premises; (E) has a separate room suitable for the location of video lottery
terminals with adult-only restricted access, the interior of which is not visible to persons outside the
room; and (F) after meeting any additional standards developed by the commission to implement
and apply this subdivision (2), is licensed under this article by the commission to allow video lottery
games to be played in the restricted access adult-only separate room on the premises.
(b) Notwithstanding the provisions of subsection (a) of this section, it does not include a
place of business that sells petroleum products in conjunction with the sale of other retail products which may include, but are not limited to, tobacco, alcohol or food products; nor may such place of
business establish a separate room or building which is a part of, contiguous to, or adjoining the
place of business as a restricted access adult-only facility.
§29-22B-329. Service technician defined.
"Service technician" means an individual who is licensed under this article to service,
maintain and repair video lottery terminals that are registered under this article. A licensed service
technician may be a sole proprietor, partner, or an employee of a person licensed under this article
or an employee of a business not licensed under this article that services, maintains and repairs video
lottery terminals owned or leased by a permittee through one or more service technicians.
§29-22B-330. Video lottery defined.
"Video lottery" means a lottery that allows a game to be played utilizing an electronic
computer and an interactive 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 or
currency as consideration in order for play to be available, and through which terminal device, the
player may receive free games or a voucher that can be redeemed for a cash or non-cash prize, or
nothing, determined wholly or predominantly by chance. "Video lottery" does not include a lottery
game that merely utilizes an electronic computer and a video screen to operate a lottery game and
communicate the results of the game and which does not utilize an interactive electronic terminal
device allowing input by one or more players.
§29-22B-331. Video gambling machine defined.
(a) "Video gambling machine" means a computerized device:
(1) That is not approved and registered by the commission under the provisions of this article
or used, possessed or operated pursuant to and under the requirements of the provisions of articles
29-22-1,
et seq., 29-22A-1,
et seq., 29-25-1,
et seq., 47-20-1,
et seq., or 47-21-1,
et seq., or any
reenactment thereof;
(2) That employs a monitor that has a display screen, software programs, graphics board,
graphics card or any other necessary components that give the monitor graphics capabilities for
displaying and manipulating pictures, words, numbers or symbols;
(3) That has an internal random generator and has a storage medium containing the source
language or executable code of a computer program that cannot be reasonably demonstrated to have
any use other than, through the display of pictures, words, numbers or symbols, simulating the play
of such games as poker, blackjack, roulette, baccarat, keno, craps, or any other game of skill or
chance of whatever name or kind;
(4) That allows a person, by inserting currency, coins, tokens or other similar objects into the machine, or by otherwise making some payment of consideration, to make the machine available for
the person to play;
(5) That allows a person playing the machine an opportunity to win (A) cash, (B) play
credits, (C) tokens, tickets, vouchers or other things that can be exchanged for cash or any other
thing of value, or (D) prizes, premiums, merchandise or any other thing of value, whether by reason
of the skill of the player or by the application of the element of chance, or both; and
(6) That can result in a payoff to a winning player automatically from the machine or in any
other manner whatsoever.
(b) "Video gambling machine" does not include:
(1) Pin ball machines;
(2) Automatic weighing, measuring, musical, and vending machines which are designed and
constructed to give a uniform and fair return in value for each coin deposited and in which there is
no element of chance; or
(3) Crane machines.
(c) A machine described in subsection (a) of this section is no less a video gambling machine
because it is not in working order or because some mechanical act of manipulation or repair is
required to accomplish its adaptation, conversion or workability.
§29-22B-332. Video lottery game defined.
"Video lottery game" means an electronically simulated game of chance that is approved,
owned and controlled under this article by the commission, which is displayed on the screen or video
monitor of a video lottery terminal and that:
(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 or currency 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 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 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 the 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 game themes of roulette, dice or baccarat card games commonly associated
with casino gambling:
Provided, That games having a video display depicting symbols that appear
to roll on drums to simulate a classic casino slot machine, game themes of other card games and
keno may be used.
§29-22B-333. Video lottery terminal defined.
"Video lottery terminal" means a commission-approved machine or device that is compatible
with the lottery commission's central computer system, and that is used for the purpose of playing
video lottery games authorized by the lottery commission.
§29-22B-334. Wager defined.
"Wager" means a sum of money or thing of value risked on an uncertain occurrence.
Part 4. Administration of Limited video lottery.
§29-22B-401. General authority of state lottery commission and director; conflicts.
(a) The lottery commission created by section 29-22-4 of this code is authorized to
implement and operate a system of limited video lottery in accordance with the provisions of this
article and the applicable provisions of article 22 of this chapter.
(b) The state lottery commission and the director of the commission shall exercise their
respective powers and perform their respective duties and functions as specified in this article.
(c) The provisions of article 22 of this chapter apply to this article, except in the event of
conflict or inconsistency between any of the provisions of this article and the provisions of article 22 of this chapter. In that event, the provisions of this article shall supersede any conflicting or
inconsistent provisions contained in article 22 of this chapter.
§29-22B-402. Powers and duties of the state lottery commission.
In addition to any other powers and duties set forth in this article or article 22 of this chapter,
the lottery commission has the following powers and duties:
(1) To propose legislative rules for promulgation by the Legislature in accordance with the
provisions of article 29A-3-1,
et seq., of this code, governing the licensing, conduct, and operation
of limited video lottery that may be necessary to carry out the purposes of this article. The director
shall prepare and submit to the lottery commission written recommendations concerning proposed
legislative rules for this purpose;
(2) To propose other rules for promulgation as provided in article 29A-3-1,
et seq., of this
code not inconsistent with this article which the commission in its discretion believes to be
necessary. Authority to propose rules includes the authority to propose amendments to rules and to
propose repealing rules;
(3) Notwithstanding any other provision of this code to the contrary, proposed legislative
rules for this article filed in the state register by the first day of August, 2001, may be filed as
emergency rules.
(4) To conduct hearings upon complaints charging violations of this article or applicable
rules, and to conduct other hearings as may be required by this article or rules of the lottery
commission;
(5) To enter into written agreements with the state police and local law enforcement agencies
for the conduct of identification and investigation of applicants, licensees or employees in
accordance with the provisions of this article, including, but not limited to, (A) performing
background investigations and criminal records checks and (B) investigating possible violations that
may be discovered as a result of an investigatory process or discovered by the tax commissioner, the
alcohol beverage control commissioner or the lottery commission in the course of conducting their
respective business. Disclosure to the state police or other law enforcement officials of a possible
violation of this article and material facts related thereto shall not be deemed to be an unauthorized
disclosure of information under section 11-10-5d of this code. Nothing in this section prevents or
impairs the state police or local law enforcement agencies from engaging in the activities set forth
in this subdivision on their own initiative;
(6) To conduct a continuous study and investigation of limited video lottery throughout the
state (A) to ascertain any defects in this article or in legislative rules that may conflict with the
purposes of this article, (B) to discover any abuses in the administration, control and oversight of limited video lottery or (C) to discover any violation of this article or applicable legislative rules;
(7) To formulate and recommend proposed legislation amending this article or any applicable
legislative rule so as to increase the efficiency and effectiveness of this article;
(8) To report immediately to the governor, the speaker of the house of delegates, the
president of the senate, the minority leaders of both houses, and such other state officers as the
lottery commission deems appropriate concerning any laws which it determines may require
immediate amendment to prevent abuses and violations of this article or any applicable rule or to
remedy undesirable conditions in connection with the administration or the operation of limited
video lottery;
(9) To require such special reports from the director as it considers necessary;
(10) To issue licenses to those involved in the ownership, participation, or conduct of limited
video lottery;
(11) To delegate to the director the authority to issue or deny licenses and renewals under
criteria established by the board;
(12) Upon complaint, or upon its own motion, to levy civil penalties and to suspend or
revoke licenses that the lottery commission has issued for failure to comply with any applicable
provision of this article or rule of the commission;
(13) To establish and collect fees upon persons, licenses, and gaming devices used in, or
participating in, limited video lottery as provided in this article or rule of the commission;
(14) To obtain all information from licensees and other persons and agencies which the
lottery commission deems necessary or desirable in the conduct of its business;
(15) To issue subpoenas for the appearance or production of persons, records, and things in
connection with applications before the lottery commission or in connection with disciplinary or
contested cases considered by the lottery commission;
(16) To apply for injunctive or declaratory relief to enforce the provisions of this article and
any rules promulgated pursuant to this article;
(17) To impose and collect civil penalties as provided for under this article;
(18) To inspect and examine without notice all premises wherein limited video lottery is
conducted or devices or equipment used in limited video lottery are located, manufactured, sold, or
distributed, and to summarily seize, remove, and impound, without notice or hearing from such
premises any equipment, devices, supplies, books, or records for the purpose of examination or
inspection;
(19) To exercise other incidental powers as may be necessary to ensure the safe and orderly
regulation of limited gaming and the secure collection of all revenues, including but not limited to taxes, fees, civil penalties and other monies due the commission;
(20) To establish internal control procedures for licensees, including accounting procedures,
reporting procedures, and personnel policies;
(21) To establish and collect fees for performing background checks on all applicants for
licenses and on all persons with whom the commission may agree with or contract with for the
providing of goods or services, as the commission deems appropriate;
(22) To establish and collect fees for performing, or having performed, tests on equipment
and devices to be used in limited video lottery;
(23) To demand, at any time when business is being conducted, access to and inspection,
examination, photocopying, and auditing of all papers, books, and records of applicants and
licensees, on their premises or elsewhere as practicable by authorized employees or agents of the
commission and in the presence of the licensee or his agent, pertaining to the gross income produced
by any licensed gaming establishment and to require verification of income, and all other matters
affecting the enforcement of the policies of the lottery commission or any provision of this article;
and to impound or remove all papers, books, and records of applicants and licensees, without
hearing, for inspection or examination; and
(24) To prescribe voluntary alternative methods for the making, filing, signing, subscribing,
verifying, transmitting, receiving, or storing of returns, writings or other documents.
§29-22B-403. Powers and duties of the director.
In addition to the duties imposed upon the director elsewhere in this article and article 22 of
this chapter, the director shall:
(1) Supervise and administer the operation of licensed limited video lottery in accordance
with the provisions of this article and the rules of the lottery commission;
(2) Issue licenses to manufacturers, operators, limited video lottery retailers and service
technicians, after approval by the lottery commission;
(3) Register video lottery terminals and equipment and issue registration decals;
(4) Collect and deposit license and registration fees due under this article;
(5) Require the mandatory posting by limited video lottery retailers of the rules of play and
the odds or house percentage on each video lottery game;
(6) Attend meetings of the lottery commission or appoint a designee to attend in the
director's place;
(7) Employ and direct such personnel as may be necessary to carry out the purposes of this
article, but no person shall be employed who has been convicted of a felony or gambling-related
offense;
(8) With the approval of the lottery commission, enter into agreements with any department,
agency, or unit of state government to secure services which the director deems necessary and to
provide for the payment for such services;
(9) Employ and compensate such consultants and technical assistants as may be required and
as otherwise permitted by law;
(10) Confer with the lottery commission as necessary or desirable, with regard to the
operation of the division;
(11) Make available for inspection by the lottery commission or any member of the
commission, upon request, all books, records, files, and other information and documents in the
director's office;
(12) Advise the lottery commission and recommend to the commission such rules and other
procedures as the director deems necessary and advisable to improve the operation of limited video
lottery;
(13) With the concurrence of the lottery commission or pursuant to commission requirements
and procedures, enter into contracts for materials, equipment, and supplies;
(14) Make a continuous study and investigation of the operation and the administration of
similar laws which may be in effect in other states or countries; of any literature on video gaming
which from time to time may be published or available; and of any federal laws which may affect
the conduct of limited video lottery in this state with a view to recommending or effecting changes
that would serve the purposes of this article;
(15) Publish as a public document a monthly report that contains a full and complete
statement of the revenue and expenses for each month from limited video lottery operations;
(16) Provide copies of the monthly revenue and expense statement to the lottery commission,
the secretary of the department of tax and revenue, the governor, the speaker of the house of
delegates, the president of the senate, and the minority leaders of both houses of the Legislature; and
(17) Perform any other acts that the lottery commission finds are necessary or desirable in
order to carry out the purposes of this article.
Part 5. Requirements and Qualifications for Licensure.
§29-22B-501. Types of licenses issued for participation in limited video lottery activities.
(a) The lottery commission may issue four types of limited video lottery licenses, as follows:
(1) A manufacturer's license;
(2) An operator's license;
(3) A limited video lottery retailer's license; and
(4) A service technician's license.
(b) A manufacturer's license is required for all persons who act as a manufacturer as defined
in section 22B-319 of this article.
(c) An operator's license is required for all persons who engage in the business of placing
and operating video gaming machines on the premises of a retailer. A licensed operator and a
licensed limited video lottery retail who hold a permit issued under part 11 of this article may obtain
video lottery terminals only from a licensed manufacturer.
(d) A video lottery retailer's license is required for all persons conducting limited video
lottery on their premises. Each person licensed as a retailer shall have and maintain sole and
exclusive legal possession of the entire premises for which the retail license is issued.
(e) Each license issued pursuant to this section expires one year from the date of its issuance
but may be successively renewed upon the filing and approval of an application for renewal, except
as otherwise provided in this article.
§29-22B-502. General qualifications for all types of limited video lottery licenses.
No limited video lottery license or license renewal may be granted unless the lottery
commission has determined that the applicant satisfies all of the following qualifications:
(1) The applicant is a person of good character, honesty and integrity;
(2) The applicant is a person whose background, criminal record, if any, reputation, habits
and associations, do not threaten to (A) compromise the public interest of the citizens of the state,
(B) weaken the effective regulation and control of video gaming, (C) breach the security and
integrity of the lottery, or (D) introduce corrupt, unfair, or illegal practices, methods and activities
into the operation of video gaming or the business or financial transactions incidental to the
operation of video gaming;
(3) The applicant has not been convicted of any violation of this article, article 19-23-1,
et
seq., of this code, articles 22, 22A or 25 of this chapter, or any felony related to theft, bribery,
gambling or involving moral turpitude in this or in any other state or foreign country;
(4) The applicant has disclosed to the lottery commission the identity of each person who has
control of the applicant, as control is described in section 22B-507, and those persons satisfy all
qualifications required by this section and any applicable qualifications required by sections 22B-503
through 22B-506;
(5) The applicant has provided a set of fingerprints and has completed and signed the
statement provided for in section 22B-602;
(6) The applicant has furnished all information, including financial data and documents,
certifications, consents, waivers, individual history forms and other materials requested by the lottery
commission for purposes of determining qualifications for a license.;
(7) The applicant has not defaulted or been terminated for failure to pay workers'
compensation premiums or failed to comply with the terms of a reinstatement agreement; and
(8) The applicant has not failed to pay contributions to employment security.
§29-22B-503. Additional qualifications for an applicant for an operator's license.
(a) No operator's license or license renewal may be granted unless the lottery commission
has determined that, in addition to the general requirements set forth in section 22B-502, the
applicant satisfies all of the following qualifications:
(1)(A) If the applicant is an individual, the applicant has been a citizen of the United States
and a resident of this state for the four year period immediately preceding the application;
(B) If the applicant is a corporation, partnership or other business entity, the chief executive
officer and the majority of the officers, directors, members and partners (to the extent each of these
groups exists with respect to a particular business organization) have been citizens of the United
States and residents of this state for the four year period immediately preceding the application;
(2) The applicant has demonstrated the training, education, business ability and experience
necessary to establish, operate and maintain the business for which the license application is made;
(3) The applicant has secured any necessary financing for the business for which the license
application is made, and the financing (A) is from a source that meets the qualifications of this
section and (B) is adequate to support the successful performance of the duties and responsibilities
of the licensee. A licensee shall request commission approval of any change in financing or leasing
arrangements at least thirty days before the effective date of the change;
(4) The applicant has disclosed all financing or refinancing arrangements for the purchase,
lease or other acquisition of video lottery terminals and associated equipment in the degree of detail
requested by the lottery commission;
(5) The applicant has filed with the lottery commission a copy of any current or proposed
agreement between the applicant and any manufacturer for the sale, lease or other assignment to the
operator of video lottery terminals, the electronic computer components of the terminals, the random
number generators of the terminals, or the cabinets in which they are housed; and
(6) The applicant does not hold any other license under this article, article 19-23-1,
et seq.,
of this code, or articles 22, 22A or 25 of this chapter, except that an applicant may also be licensed
as a service technician.
(b)(1) A person or a member of his or her immediate family who has an ownership interest
in a business entity that submits an application for an operator's license may not (A) submit an
application for another operator's license as an individual, (B) serve as an officer, director, member
or partner of a business entity that submits an application for another operator's license, or (C) have an ownership interest in any other business entity that submits an application for an operator's
license.
(2) Business entities that have common owners or common officers, directors, members or
partners may not submit an application for more than one operator's license.
§29-22B-504. Additional qualifications for an applicant for a limited video lottery retailer's
license.
No limited video lottery retailer's license or license renewal may be granted unless the lottery
commission has determined that, in addition to the general requirements set forth in section 22B-502,
the applicant satisfies all of the following qualifications:
(1)(A) If the applicant is an individual, the applicant has been a citizen of the United States
and a resident of this state for the four year period immediately preceding the application;
(B) If the applicant is a corporation, partnership or other business entity, the chief executive
officer and the majority of the officers, directors, members and partners (to the extent each of these
groups exists with respect to a particular business organization) have been citizens of the United
States and residents of this state for the four year period immediately preceding the application;
(2) The applicant has disclosed to the lottery commission the identity of each person who has
control of the applicant, as control is described in section 22B-507;
(3) The applicant holds either (A) a valid license issued under article 60-7-1,
et seq., of this
code to operate a private club, (B) a valid Class A license issued under article 11-16-1,
et seq., of this
code to operate a business where nonintoxicating beer is sold for consumption on the premises, or
(C) both licenses;
(4) The applicant has demonstrated the training, education, business ability and experience
necessary to establish, operate and maintain the business for which the license application is made;
(5) The applicant has secured any necessary financing for the business for which the license
application is made, and the financing (A) is from a source that meets the qualifications of this
section and (B) is adequate to support the successful performance of the duties and responsibilities
of the licensee;
(6) The applicant has disclosed all financing or refinancing arrangements for placement on
the applicant's premises of video lottery terminals and associated equipment in the degree of detail
requested by the lottery commission;
(7) The applicant has filed with the lottery commission a copy of any current or proposed
agreement between the applicant and a licensed operator for the placement on the applicant's
premises of video lottery terminals;
(8) The applicant has filed with the lottery commission a copy of any current or proposed agreement between the applicant and a licensed operator or other person for the servicing and
maintenance of video lottery terminals by licensed service technicians; and
(9) The applicant does not hold any other license under this article, article 19-23-1,
et seq.,
of this code, or articles 22, 22A or 25 of this chapter, except that an applicant may also be licensed
as a service technician.
§29-22B-505. Additional qualification for an applicant for a service technician's license.
No service technician's license or license renewal may be granted unless the lottery
commission has determined that, in addition to the general requirements set forth in section 22B-502,
the applicant has passed a technical competence test administered or approved by the lottery
commission.
§29-22B-506. Additional qualifications for an applicant for a manufacturer's license.
No manufacturer's license or license renewal may be granted unless the lottery commission
has determined that, in addition to the general requirements set forth in section 22B-502, the
applicant satisfies all of the following qualifications:
(1) The applicant has obtained, or can obtain, certification of compliance under the provisions
of part 15 of the federal communications commission rules for all video lottery terminals placed in
this state;
(2) The applicant has demonstrated the capacity to manufacture terminals and associated
equipment for placement in this state in accordance with the specifications and procedures set forth
in part 9 of this article;
(3) The applicant has demonstrated the ability to maintain and provide an inventory of spare
parts so as to assure the timely repair and continuous operation of licensed video lottery terminals
placed in this state; and
(4) The applicant has demonstrated the capacity to timely deliver video lottery terminals and
associated equipment to licensed operators and licensed limited video lottery retailers who hold
permits issued under part 11 of this article to own or lease video lottery terminals from licensed
manufacturers.
§29-22B-507. Persons having control of an applicant for a limited video lottery license.
The following persons are considered to have control of an applicant:
(1) Each person associated with a corporate applicant, including any corporate holding
company, parent company or subsidiary company of the applicant, but not including a bank or other
licensed lending institution which holds a mortgage or other lien acquired in the ordinary course of
business, who has the ability to control the activities of the corporate applicant or elect a majority
of the board of directors of that corporation.
(2) Each person associated with a noncorporate applicant who directly or indirectly holds any
beneficial or proprietary interest in the applicant or who the commission determines to have the
ability to control the applicant.
(3) Key personnel of an applicant, including any executive, employee or agent, having the
power to exercise significant influence over decisions concerning any part of the applicant's business
operation.
§29-22B-508. Commission action on applications.
(a) The commission may not issue any license until after the background investigations are
concluded. This provision shall not apply to an application for renewal of a license except to the
extent background investigations are required of an applicant for renewal of a license in legislative
rules of the commission.
(b) The commission shall make an affirmative determination that the applicant is qualified
and that the applicable license fees have been paid prior to issuing any license.
§29-22B-509. Incomplete application not to be considered.
(a) The lottery commission shall notify the applicant in writing if an application is
incomplete and the notification shall state the deficiencies in the application.
(b)The commission may not consider incomplete applications. The commission may
consider an application when the applicant has completed and executed all forms and documents
required by the commission and all application fees and costs have been paid.
§29-22B-510. Burden of proving qualification for license.
The burden of proving qualification for any limited video lottery license or for renewal
thereof is on the applicant.
§29-22B-511. Issuance of order refusing to issue or renew license, or suspending or revoking
same.
(a) The commission shall notify applicants and licensees in writing of the denial, suspension
or revocation of a license and the reasons for the denial, suspension or revocation in accordance with
the provisions of section 22B-518.
(b) An applicant may request a hearing to review a license denial, suspension or revocation
in accordance with part 15 of this article.
§29-22B-512. Review of continuing eligibility for license.
The lottery commission shall determine on a continuing basis the eligibility of licensees to
hold a license. Notwithstanding any other provision of this article, each operator and video gaming
retailer shall be a resident of this state during the period in which the licensed issued for the operator
or limited video lottery retailer is in effect.
§29-22B-513. Application forms and other documents.
(a) The commission shall determine the forms of application to be used.
(b) All application, registration and disclosure forms and other documents submitted to the
lottery commission by or on behalf of the applicant for purposes of determining qualification for a
video lottery license shall be sworn to or affirmed before an officer qualified to administer oaths.
§29-22B-514. Failure to reveal material fact; false or misleading material.
(a) An applicant who knowingly fails to reveal any fact that is material to qualification or
who knowingly submits false or misleading material information is ineligible for a video lottery
license.
(b) An applicant who is awarded a license or renewal of a license shall give the commission
written notification of any material change in the information previously submitted in or with the
application for the license or for renewal thereof, whichever is the most recent document filed with
the commission, within thirty days after the material change occurs or the licensee becomes aware
of the material change, whichever event occurs last.
§29-22B-515. Bonding requirements for operators and limited video lottery retailers who are
permittees.
Before any operator or limited video lottery retailer is issued a permit under part 11 of this
article to own or lease video lottery terminals from a licensed manufacturer, the permittee shall post
a bond or irrevocable letter of credit in a manner and in an amount established by the commission.
The bond must be issued by a surety company authorized to transact business in West Virginia and
the company must be approved by the insurance commission of this state as to solvency and
responsibility. A permittee who is a video lottery retailer that has permits for two or more restricted
access adult-only facilities may post a blanket bond.
§29-22B-516. Applicant bears the risk of adverse publicity.
Each applicant bears all risks of adverse public notice, embarrassment, criticism, damages
or financial loss which may result from any disclosure or publication of any material or information
obtained by the lottery commission pursuant to action on an application. The applicant shall, as a
part of its application, expressly waive any and all claims against the lottery commission, the state
of West Virginia and the employees of either for damages as a result of any background
investigation, disclosure or publication relating to an application for a video lottery license or permit.
§29-22B- 517. Renewal of licenses.
The commission shall renew video lottery licenses annually on a date set by the commission,
if each person seeking license renewal submits the applicable renewal fee, completes all renewal
forms provided by the commission, and continues to meet all qualifications for a license.
§29-22B- 518. Annual license fees.
(a) The following license fees shall be paid annually by each licensed operator, manufacturer
or service technician:
(1) Operator: $10,000;
(2) Manufacturer: $10,000;
(3) Service technician: $100;
(4) Limited video lottery retailer: $500.
(b) The applicable fee shall be paid to the commission at the time the application for a license
is submitted to the commission and upon the annual renewal date each year thereafter, at which time
the license may be renewed.
(c) A manufacturer who ceases supplying any additional video lottery terminals to permittees
in this state may continue to supply repair parts and service for video lottery terminals previously
provided to permittees, if an annual renewal fee of one thousand dollars is paid and the manufacturer
is otherwise eligible for licensure under this article.
(d) License fees collected under this section shall be deposited in the state tax revenue
economic enhancement trust established in section 22B-1409.
Part 6. Background Investigations.
§29-22B-601. Establishment of procedures for background investigations.
(a) The lottery commission, through a cooperative agreement with the state police, shall
establish procedures for conducting background investigations for the purpose of determining
whether an applicant has been charged with, indicted for, or convicted of a crime that may have
bearing upon the applicant's fitness to hold a license under this article.
(b) A background investigation must include, but not be limited to, (1) accessing the national
criminal history background check system as defined in section 22B-319 and (2) reviewing any other
readily accessible state or federal criminal history records that may be pertinent to the background
investigation.
(c) The state police shall make a determination whether the applicant has been convicted of,
or is under pending indictment for, a crime that bears upon the applicant's fitness to hold a license
under this article and shall convey that determination to the lottery commission.
§29-22B-602. Responsibility of state police in conducting background investigations.
The state police shall establish and maintain an adequate system for background
investigations that:
(1) Ensures that timely background investigations are conducted on applicants for limited
video lottery licenses, current licensees, and other persons required to be investigated by the lottery commission in accordance with the provisions of this article or by legislative rules promulgated
pursuant to this article;
(2) Provides for review and oversight of applicants, current licensees, and other persons on
an ongoing basis;
(3) Provides that upon receipt of a background check report lacking disposition data, further
research will be conducted in whatever state and local recordkeeping systems are available in order
to obtain complete data;
(4) Provides for prompt notification to the lottery commission of the results of background
investigations before the issuance or renewal of any of license; and
(5) Clearly defines a standard whereby a person's prior activities, criminal record, if any,
or reputation, habits and associations are such as to pose a threat to the public interest or to the
effective regulation of limited video lottery, or create or enhance the dangers of unsuitable, unfair,
or illegal practices and methods and activities in the conduct of gaming, thereby rendering that
person ineligible for licensing.
§29-22B-603. Guidelines for background investigations.
The lottery commission may not request a background check of an applicant under section
22B-601 unless the applicant first provides a set of fingerprints and completes and signs a statement
that:
(1) Contains the name, address, and date of birth appearing on a valid identification
document (as defined in section 22B-312) of the applicant;
(2) Declares that the applicant has not been convicted of a crime or, if the applicant has been
convicted of a crime, contains a description of the crime and the particulars of the conviction;
(3) Notifies the applicant that the lottery commission will request a background check under
section 22B-601; and
(4) Notifies the applicant of the applicant's rights under section 22B-604.
§29-22B-604. Applicant's rights regarding background investigations.
Each applicant who is the subject of a background check is entitled to a copy of his or her
background investigation report, and has the right to challenge the accuracy and completeness of any
information contained in the report and to obtain a prompt determination as to the validity of the
challenge before a final determination is made by the lottery commission that would deny issuance
of a license or renewal of a license.
Part 7. Duties and Responsibilities of Licensees.
§29-22B-701. General duties of all licensees.
All video lottery license holders shall:
(1) Promptly report to the commission any facts or circumstances related to video lottery
operations that constitute a violation of state or federal law;
(2) Conduct all video lottery activities and functions in a manner that does not pose a threat
to the public health, safety or welfare of the citizens of this state, and which does not adversely affect
the security or integrity of the lottery;
(3) Hold the commission and this state harmless from and defend and pay for the defense of
any and all claims that may be asserted against a license holder, this state or the commission and its
employees arising from the license holder's participation in the video lottery system authorized by
this article;
(4) Assist the commission in maximizing video lottery revenues;
(5) Maintain all records required by the commission;
(6) Upon request by the commission or any designated agent of the commission, provide the
commission access to all records and the physical premises of the business or businesses where the
license holder's video lottery activities occur, for the purpose of monitoring or inspecting the license
holder's activities and the video lottery games, video lottery terminals and associated equipment;
(7) Keep current in all payments and obligations to the commission; and
(8) Notify the commission in writing of any proposed change of ownership or control of the
license holder and of all other transactions or occurrences relevant to license qualification, and
receive commission approval prior to any change of ownership or control of a licensed manufacturer,
operator or video lottery retailer.
§29-22B-702. Additional duties of limited video lottery retailers.
In addition to the general duties imposed on all licensees in section 22B-701, a limited video
lottery retailer shall:
(1) Attend all commission mandated meetings, seminars and training sessions concerning
operation of video lottery terminals, the validation and redemption of video lottery winning tickets
and the operation of all ticket validation terminals and equipment;
(2) Maintain all skills necessary for the accurate validation of video lottery tickets;
(3) Supervise video lottery operations and ticket validation procedures at the applicable
location;
(4) Permit no person to tamper with or interfere with the operation of any video lottery
terminal;
(5) Ensure that telephone lines from the commission's central control computer to the video
lottery terminals located at the approved location are at all times connected, and prevent any person
from tampering or interfering with the operation of the telephone lines;
(6) Ensure that video lottery terminals are within the sight and control of designated
employees of the limited video lottery retailer;
(7) Ensure that video lottery terminals are placed and remain placed in the specific locations
which have been approved by the commission. A video lottery terminal in a restricted access adult-
only facility may not be relocated within the facility without the prior written approval of the
commission;
(8) Monitor video lottery terminals to prevent access to or play by persons who are under the
age of twenty-one years or who are visibly intoxicated;
(9) Maintain at all times sufficient change and cash in the denominations accepted by the
video lottery terminals;
(10) Provide no access by a player to an automated teller machine (ATM) in the restricted
access adult-only facility where video lottery games are played, accept no credit card or debit card
from a player for the exchange or purchase of video lottery game credits or for an advance of coins
or currency to be utilized by a player to play video lottery games and extend no credit, in any
manner, to a player so as to enable the player to play a video lottery game;
(11) Pay for all credits won upon presentment of a valid winning video lottery ticket;
(12) Report promptly in writing to the operator and the commission all video lottery terminal
malfunctions and notify the commission in writing of the failure of an operator or service technician
to provide prompt service and repair of the terminals and associated equipment;
(13) Conduct no video lottery advertising or promotional activities;
(14) Not use the words "video lottery" in the name of the approved location, or in any
directions or advertising visible from outside the retailer's establishment;
(15) Install, post and display prominently within or about the approved location signs,
redemption information and other promotional material as required by the commission;
(16) Permit video lottery to be played only during those hours established and approved by
the commission:
Provided, That the limited video lottery retailer shall not permit video lottery to
be played beyond the hour during which liquor may be served;
(17) Contract with no more than one licensed operator for the placement of video lottery
terminals at the licensed location;
(18) Maintain insurance covering all losses as the result of fire, theft or vandalism to video
lottery terminals and associated equipment; and
(19) Comply with all applicable provisions of this article and rules and orders of the
commission.
§29-22B-703. Additional duties of limited video lottery retailers who are permittees.
In addition to the general duties imposed on all licensees in section 22B-701 and the
additional duties imposed on all limited video lottery retailers in section 22B-702, a limited video
lottery retailer who is a permittee shall:
(1) Acquire video lottery terminals by purchase, lease or other assignment only from licensed
manufacturers;
(2) Acquire no video lottery terminals in excess of the number he or she is authorized to
operate in this state as stated in the permit issued under part 11 of this article.;
(3) Pay for the installation and operation of commission approved telephone lines to provide
direct dial-up or on-line communication between each video lottery terminal and the commission's
central control computer;
(4) Purchase or lease and install computer controller units and other associated equipment
required by the commission for video lottery terminals owned or leased by the permitee;
(5) Ensure that telephone lines from the commission's central control computer to the video
lottery terminals located at the approved location are at all times connected, and prevent any person
from tampering or interfering with the operation of the telephone lines;
(6) Assume financial responsibility for proper and timely payments of all credits awarded
to players in accordance with legislative rules promulgated by the commission;
(7) Enter into contracts with a licensed operator, licensed manufacturer or other businesses
to provide for the maintenance and repair of video lottery terminals and associated equipment only
by individuals who are license service technicians, and to provide for the placement of video lottery
terminals pursuant to the provisions of this article;
(8) Promptly notify the commission in writing of any breaks or tears to any logic unit seals;
and
(9) Assume liability for all amounts due to the commission in connection with any money
lost or stolen from any video lottery terminal.
§29-22B-704. Duties of limited video lottery retailer regarding payment of credits.
(a) A limited video lottery retailer shall not make payment for credits awarded on a video
lottery terminal 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 limited video lottery retailer shall redeem tickets during the business hours of operation. Credits shall be immediately paid in cash or by check when a player presents a valid
ticket for payment. No credits may be paid in tokens, chips or merchandise. The limited video
lottery retailer is responsible for all income tax reporting of prize payments paid to players above
the threshold set by the United States Internal Revenue Service.
(1) A limited video lottery retailer may not redeem tickets for credits awarded on a video
lottery terminal that is not located on its premises;
(2) 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.
(c) A limited video lottery retailer shall deface all redeemed tickets in a manner that prevents
any subsequent presentment and payment.
(d) The commission is not responsible for any video lottery terminal malfunction that causes
a credit to be wrongfully awarded or denied to players. The permittee is solely responsible for any
wrongful award or denial of credits.
§29-22B-705. Additional duties of manufacturers.
In addition to the general duties imposed on all licensees in section 22B-701 of this article,
a manufacturer shall:
(1) Manufacture terminals and associated equipment for placement in this state in accordance
with the specifications and procedures specified in part 9 of this article;
(2) Manufacture terminals and associated equipment to ensure timely delivery to licensed
permittees;
(3) Maintain and provide an inventory of spare parts to assure the timely repair and
continuous operation of licensed video lottery terminals intended for placement in this state;
(4) Pay no compensation of any kind to any limited video lottery retailer or give or transfer
anything of value to any limited video lottery retailer, beyond a nominal consideration of one dollar
per year;
(5) Provide to licensed permittees technical assistance and training in the service and repair
of video lottery terminals and associated equipment so as to assure the continuous authorized
operation and play of the video lottery terminals;
(6) Obtain certification of compliance under the provisions of part fifteen of the federal
communication commission rules for all video lottery terminals placed in this state;
(7) Comply with all applicable provisions of this article and rules and orders of the
commission; and
(8) Sell or lease video lottery terminals or associated equipment to a permittee who is a
limited lottery retailer under terms and conditions that are more favorable than the terms and conditions under which similar terminals or equipment are generally sold or leased to permitees who
are licensed operators.
§29-22B-706. Additional duties of operators.
In addition to the general duties imposed on all licensees in section 22B-701 of this article,
an operator shall:
(1) Acquire video lottery terminals by purchase, lease or other assignment only from licensed
manufacturers;
(2) Acquire no video lottery terminals in excess of the number they are authorized to operate
in this state as stated in the permit issued under part 11 of this article;
(3) Contract with limited video lottery retailers for a secure location for the placement,
operation and play of the video lottery terminals;
(4) Pay no compensation of any kind to any limited video lottery retailer or give or transfer
anything of value to any limited video lottery retailer, that is in addition to the consideration stated
in the written agreement between the operator and the limited video lottery retailer, which may be
not less than forty percent nor more than fifty percent of the amount of net terminal income received
by the operator in connection with the video lottery terminals at that location;
(5) Pay for the installation and operation of commission approved telephone lines to provide
direct dial-up or on-line communication between each video lottery terminal and the commission's
central control computer;
(6) Purchase or lease and install computer controller units and other associated equipment
required by the commission for video lottery terminals owned or leased by the permitee;
(7) Permit no person to tamper with or interfere with the operation of any video lottery
terminal;
(8) Ensure that telephone lines from the commission's central control computer to the video
lottery terminals located at the approved location are at all times connected, and prevent any person
from tampering or interfering with the operation of the telephone lines;
(9) Ensure that video lottery terminals are placed and remain placed in the specific places
within the approved restricted access adult-only facility that have been approved by the commission.
No video lottery terminal in a restricted access adult-only facility may be relocated within the
restricted access adult-only facility without the prior written approval of the commission;
(10) Assume financial responsibility for proper and timely payments by limited video lottery
retailers of all credits awarded to players in accordance with legislative rules promulgated by the
commission;
(11) Enter into contracts with limited video lottery retailers to provide for the maintenance
and repair of video lottery terminals and associated equipment only by licensed service technicians, and to provide for the placement of video lottery terminals pursuant to the provisions of this article;
(12) Conduct no video lottery advertising and promotional activities;
(13) Install, post and display prominently within or about the approved location signs,
redemption information and other material as required by the commission;
(14) Maintain general liability insurance coverage for all video lottery terminals in an amount
of at least one million dollars per claim;
(15) Promptly notify the commission in writing of any breaks or tears to any logic unit seals;
(16) Assume liability for all amounts due to the commission in connection with any money
lost or stolen from any video lottery terminal; and
(17) Comply with all applicable provisions of this article and rules and orders of the
commission.
§29-22B-707. Additional duties of service technicians.
In addition to the general duties imposed on all licensees in section 22B-701 of this article,
a service technician shall:
(1) Maintain all skills necessary for the timely repair and service of licensed video lottery
terminals and associated equipment so as to ensure the continued, approved operation of those
terminals;
(2) Attend all commission mandated meetings, seminars and training sessions concerning
the repair and maintenance of licensed video lottery terminals and associated equipment;
(3) Promptly notify the commission in writing of any electronic or mechanical video lottery
terminal malfunctions; and
(4) Comply with all applicable provisions of this article and rules and orders of the
commission.
Part 8. Approval of video lottery terminals and associated equipment.
§29-22B-801. Manufacturer seeking approval of terminal must be licensed; prohibition
against placement of unapproved terminal.
(a) Only licensed manufacturers may apply to the lottery commission for approval of a video
lottery terminal or associated equipment.
(b) A manufacturer may not sell or lease a video lottery terminal for placement in a licensed
facility in the state unless the terminal has been approved by the lottery commission.
§29-22B-802. Testing of video lottery terminals and associated equipment.
(a) The manufacturer shall submit two copies of terminal illustrations, schematics, block
diagrams, circuit analysis, technical and operation manuals, and any other information requested by
the commission for the purpose of analyzing and testing the video lottery terminal or associated equipment.
(b) The lottery commission may require that the manufacturer transport two working models
of a video lottery terminal to the location designated by the lottery commission for testing,
examination and analysis. When this is required:
(1) The manufacturer shall pay all costs of testing, examination, analysis and transportation
of the video lottery terminal models. The testing, examination and analysis of any video lottery
terminal model may require dismantling of the terminal, and some tests may result in damage or
destruction to one or more electronic components of the terminal model. The lottery commission
may require that the manufacturer provide specialized equipment or pay for the services of an
independent technical expert to test the terminal; and
(2) The manufacturer shall pay the cost of transportation of two video lottery terminals to
lottery headquarters. The lottery commission shall conduct an acceptance test to determine terminal
functions and central system compatibility. If the video lottery terminal fails the commission
conducted acceptance test, the manufacturer shall make all modifications required by the
commission.
§29-22B-803. Reporting of testing results.
After each test has been completed, the commission shall provide the terminal manufacturer
with a report containing findings, conclusions and pass/fail results. The report may contain
recommendations for video lottery terminal modification to bring the terminal into compliance with
the provisions of this article.
Part 9. Video lottery hardware and software.
§29-22B-901. Hardware specifications.
Video lottery terminals licensed for placement in this state must meet the hardware
specifications set forth in this part 9.
§29-22B-902. Control of electrical power.
(a) 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 ninety
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.
(b) An on/off switch that 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.
(c) The operation of each video lottery terminal may not be adversely affected by any static
discharge or other electromagnetic interference.
§29-22B-903. Coin or bill acceptors.
(a) A minimum of one electronic or mechanical coin acceptor or other means by which to
accurately and efficiently establish credits must 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.
(b) The lottery commission shall approve all coin and bill acceptors prior to use on any video
lottery terminal in this state.
(c) A video lottery terminal shall not allow more than two dollars to be wagered on a single
game.
§29-22B-904. Security; access to the interior of video lottery terminals.
(a) Access to the interior of video lottery terminals shall be controlled through a series of
locks and seals.
(b) The main logic boards and all erasable programmable read-only memory chips
(EPROMS) are considered to be owned by the lottery commission and shall be located in a separate
locked and sealed area within the video lottery terminal.
(c) The cash compartment shall be located in a separate locked area within or attached to the
video lottery terminal.
(d) 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 intended to control the terminal's graphic routines, speed of
play, sound and other purely cosmetic features may not be used without the written approval of the
commission.
(e) All video lottery terminals shall have a security system which will temporarily disable
the gaming function of the terminal while opened.
§29-22B-905. Printing mechanism.
Each video lottery terminal must 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 lottery
commission. The following information must be recorded on the ticket when credits accrued on a
video lottery terminal are redeemed for cash:
(1) The number of credits accrued;
(2) The value of the credits in dollars and cents displayed in both numeric and written form;
(3) The time of day and date;
(4) The validation number; and
(5) Any other information required by the commission.
§29-22B-906. Identification plate.
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:
(1) The manufacturer of the video lottery terminal;
(2) The serial number of the terminal; and
(3) The model number of the terminal.
§29-22B-907. Display of information on terminal face or screen.
All information required by this section must be displayed under glass or another transparent
substance.
(1) 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 that are incomplete, confusing, misleading or
inconsistent with game rules approved by the commission.
(2) 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.
(3) No stickers or other removable devices shall be placed on the video lottery terminal
screen or face without the prior written approval of the commission.
(4) A label prominently displaying information on how to locate and contact persons or
organizations available for help, assistance or treatment for persons who may have a gambling
addiction, together with the telephone number "1-800-GAMBLER."
§29-22B-908. Communication with central computer system.
Communication equipment and devices shall be installed to enable each video lottery
terminal to communicate with the lottery commission's central computer system. The commission
shall provide to licensed manufacturers, or applicants applying for a manufacturer's license, 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.
§29-22B-909. Random number generator required.
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; and
(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.
§29-22B-910. Payout standards.
Each video lottery terminal shall meet the following maximum and minimum theoretical
percentage payout during the expected lifetime of the 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 shall be determined
using standard methods of probability theory;
(2) Manufacturers shall file a request and receive written approval from the commission prior
to manufacturing for placement in this state video lottery games programmed for a payout greater
than ninety-two percent of the amount wagered. Commission approval shall be obtained prior to
applying for testing of the high payout terminals; and
(3) Each game shall have a probability greater than one in seventeen million of obtaining the
maximum payout for each play.
§29-22B-911. Continuation of current game after malfunction.
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 limited video lottery retailer shall return the current
wager and all credits appearing on the video lottery terminal screen prior to the malfunction to the
player.
§29-22B-912. Electronic accounting required.
(a) 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) The number of coins inserted by players or the coin equivalent if a bill acceptor is being
used;
(2) The number of credits wagered;
(3) The number of credits won;
(4) The number of credits paid out by a printed ticket;
(5) The number of times the logic area was accessed;
(6) The number of times the cash door was accessed;
(7) The number of credits wagered in the current game;
(8) The number of credits won in the last complete video lottery game; and
(9) The number of cumulative credits representing money inserted by a player and credits
for video lottery games won but not collected.
(b) No video lottery terminal may have any mechanism that would allow 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, the limited video lottery retailer shall record all meter readings in the presence of a
commission employee.
Part 10. Conditions for Sale or Lease of Video Lottery Terminals.
§29-22B-1001. Manufacturer must be licensed.
A manufacturer of video lottery terminals may not sell or lease video lottery terminals to any
person for use in this state unless the manufacturer possesses a current manufacturer's license issued
by the lottery commission as provided in this article.
§29-22B-1002. Manufacturers may sell or lease only to permittees.
A licensed manufacturer of video lottery terminals may only sell or lease video lottery
terminals for use in this state to a person who possesses at the time of delivery a valid permit to own
or lease one or more video lottery terminals and a valid operator's license or a valid limited video
lottery retailer's license issued by the lottery commission as provided in this article.
§29-22B-1003. Terminals must be approved.
A licensed manufacturer may not sell or lease a video lottery terminal for placement by an
permittee in this state unless the terminal has been approved by the lottery commission as provided
in this article.
§29-22B-1004. Purchase or lease by permittees.
Only permittees may purchase or lease video lottery terminals from a licensed manufacturer.
Part 11. Allocation and Distribution of Video Lottery Terminals.
§29-22B-1101. Limitation on number and location of video lottery terminals.
(a) The lottery commission may not authorize the placement of more than nine thousand
video lottery terminals in restricted access adult-only facilities in this state.
(b) No person may directly or indirectly operate more than seven and one-half percent of the
number of video lottery terminals authorized in this section, which shall be located only in restricted
access adult-only facilities.
(c) No licensed limited video lottery retailer may be authorized to have on the premises for
which the license was issued more than five video lottery terminals except that a fraternal society
or veteran's organization that is (A) a fraternal beneficiary society that is exempt from federal
income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended, (B) a
domestic fraternal society that is exempt from federal income tax under section 501(c)(10), or (C)
a veterans' organization that is exempt from federal income tax under section 501(c)(19) of the
Internal Revenue Code may be authorized to have on the premises for which the license was issued
not more than ten video lottery terminals.
§29-22B-1102. Permits to operate video lottery terminals
;
expiration date; annual fee to be
paid by May 1st.
(a) The lottery commission shall establish forms for an operator's permit to own or lease and
operate video lottery terminals and a permit for a limited video lottery retailer that allows the holder
to own or lease video lottery terminals from a licensed manufacturer. The number of video lottery
terminals that a person may own or lease or have on a limited video lottery retailer premises shall
be stated the license or permit issued by
the commission as provided in this article.
(b) Permits shall be issued by the commission for a period of ten years, except that all permits
expire on the thirtieth day of June, 2011, unless they are sooner surrendered, modified, suspended
or revoked as provided in this article: Provided, That the annual fee imposed by this part for each
video lottery terminal authorized in the permit shall be paid on or before the first day of May each
year.
§29-22B-1103. Permit fee.
For the privilege of holding a permit that authorizes the licensee to own or lease video lottery
terminals from a licensed manufacturer, the person shall pay an annual fee of one thousand dollars
per video lottery terminal for which the permit is issued. This fee shall initially be paid at the time
the permit is issued for the number of video lottery terminals a person is authorized to own or lease
without going through the bid process. Thereafter, this fee shall be due and payable each first day
of May while the person holds the permit and the amount of the fee shall be determined by the
number of video lottery terminals the person is permitted to own or lease video lottery terminals from a licensed manufacturer.
§29-22B-1104. Reservation of authority to have video lottery terminals on or before August
1, 2001
.
(a) On or before the first day of August, 2001, every person who held on the first day of
January, 2001, a private club license issued as provided in article 60-7-1 et seq. of this code, or a
class "A" nonintoxicating beer license issued as provided in article 11-16-1 et seq. of this code, and
wants to offer video lottery terminals, as defined in this article, for the enjoyment of the licensee's
customers after the effective date of this article shall file an application to be licensed as a limited
video lottery retailer under this article.
(b) The applications described in subsection (a) of this section shall be in the form prescribed
by the lottery commission, be signed by the applicant or a person authorized to sign an application
filed for a person who is not an individual, and provide all of the information requested by the lottery
commission. The commission shall not consider any application that is incomplete in any material
respect and the incomplete application shall be returned to the applicant for completion and refiling.
An incomplete application submitted for a limited video lottery retailer's license shall be returned
to the applicant for completion and refiling by the first day of August, 2001.
(c)(1) An application filed on or before the first day of August, 2001 for a limited video
lottery retailer's license shall state the number of video lottery terminals to be located on the premise
of the applicant and state whether the applicant will own or lease the video lottery terminals or obtain
them from an operator.
(2) The number of video lottery terminals a limited video lottery retail licensee is authorized
to have on its premises shall be stated in the limited video lottery retailer's license issued to the
licensee. The number of video lottery terminals a limited video lottery retailer is authorized to own
or lease from a manufacturer shall be stated in the permit issued to the licensee. Once the permit is
issued, the permitee may purchase or lease the number of video lottery terminals authorized in the
permit. A limited video lottery retailer who elects to obtain video lottery terminals from an operator
may contract with an operator for the number of video lottery terminals stated in the license.
(d) Authorization to have a video lottery terminal on the premises of a video lottery retailer
expires on the thirtieth day of June, 2011, and every ten years thereafter unless during the fiscal year
of the state ending the thirtieth day of June, 2011, and each ten years thereafter, the video lottery
retailer files an application as provided in this section for the next ensuing ten year period.
§29-22B-1105. Determination of authorizations to be issued without bid and number of
authorizations to be bid.
(a) When the applications provided for in section 22B-1104 of this part are received by the commission on or before the first day of August, 2001, the commission shall reserve for each
applicant authorizations to have no more than two video lottery terminals on the premises for which
the private club license issued under article 60-7-1 et seq., of this code, or a class "A"
nonintoxicating beer license was issued prior to the first day of January, 2001, except that a fraternal
society or veteran's organization that is (A) a fraternal beneficiary society that is exempt from
federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended, (B)
a domestic fraternal society that is exempt from federal income tax under section 501(c)(10), or (C)
a veterans' organization that is exempt from federal income tax under section 501(c)(19) of the
Internal Revenue Code may be authorized to have on the premises for which the license was issued
not more than seven video lottery terminals.
(b) The commission shall then determine the total number of authorization to have video
lottery terminals reserved under subsection (a) of this section and subtract that number from the total
number of video lottery terminals authorized for the state in section 22B-1101 of this part. This
establishes the number of authorizations available for bid as provided in section 22B-1106.
(c) If an application for a limited video lottery retailer's license is received after the first day
of August, 2001, whether from an applicant who on the first day of January, 2001, held a private
club license issued under article 60-7-1, et seq., of this code or a class "A" nonintoxicating beer
license issued under article 11-16-1, et seq., of this code, or from an applicant who is issued a
private club license or a class "A" nonintoxicating beer license after the first day of January, 2001,
no authorization to have video lottery terminals may be reserved for that applicant under this section.
The applicant may contract with a licensed operator to furnish video lottery terminals or may submit
a bid for authorization to own video lottery terminals as provided in section 22B-1106 of this part.
(d) As used in this section the term "received" means physically received in the office of the
state lottery by 4:30 p.m. on the first day of August, 2001.
§29-22B-1106. Allocation of authorization to own or lease video lottery terminals by sealed
bid.
(a) The number of video lottery terminals as determined by the commission under section
1105 of this article for which a licensed operator or limited video lottery retailer may obtain a permit
under this section shall be determined by sealed competitive bid.
(b) Bids for permits to own or lease video lottery terminals shall be governed by the
provisions of this part 11.
(c) A permit to own or lease one or more video lottery terminals, as defined in this article,
may only be issued to a person who is licensed as an operator or a limited video lottery retailer under
this article.
(d) All permits issued under this section shall be based on sealed competitive bids in
accordance with the provisions of this section.
(e) The commission may set a single uniform minimum bid for each video lottery terminal
for which bids are sought. Each time before the first publication of a legal notice soliciting bids, the
commission may set a new minimum bid.
§29-22B-1107. Bidding process.
(a) Bids for issuance of permits shall be obtained by public notice published as a Class II-0
legal advertisement in compliance with the provisions of article 59-3-1, et seq of this code;
(b) The second publication of the notice shall appear more than sixty days next preceding the
final day for submitting bids;
(c) Each bid shall indicate the number of video lottery terminals for which the permit is
sought. The bid shall state the amount bid for each video lottery terminal for which the permit is
sought;
(d) No bid may be altered or withdrawn after the appointed hour for the opening of the bids;
(e) Subject to the provisions of subsection (f) of this section, permits shall be awarded to the
persons submitting the highest per terminal bids, except that no person may be authorized to directly
or indirectly own or lease more than seven and one-half percent of the total number of video lottery
terminals authorized in section 22B-1101 of this article. If a high bidder already holds a permit
issued under this section, the bid shall be awarded to that bidder, but only to the extent the total
number of video lottery terminals the operator or limited video lottery retailer is authorized to
directly or indirectly own or lease does not exceed seven and one-half percent of the number of video
lottery terminals authorized for the entire state specified in section 22B-1101;
(f) No bid shall be considered unless the bond required by section 22B-1109 accompanies
the bid or was submitted to the state treasurer before the time designated for opening of the bid;
(g) No bid shall be considered unless the amount of the bid equals or exceeds the minimum
bid amount for a video lottery terminal specified by the commission;
(h) All bids for a permit may be rejected by the commission if the commission determines
that the bids are inadequate. In this event, the director shall begin anew the bidding process for the
permits;
(i) Whenever there are two or more bids of the same dollar amount and the number of
authorizations for which the bids were submitted exceeds the number of authorizations still available
to fill the bids, the director shall award the permit based upon the drawing of lots among the bidders.
(j) A person submitting a bid under this article shall deliver one copy to the director of
purchasing, West Virginia department of administration and deliver a second or duplicate copy to the state auditor. Both copies must be received at the respective offices prior to the specified date
and time of the bid opening;
(k) The failure to deliver or the nonreceipt of these bid forms at either of these offices prior
to the appointed date and hour are grounds for rejection of the bids. In the event of any deviation
between the copies submitted to the purchasing division and the state auditor, the bids as to which
there is a deviation shall be rejected;
(l) After the award of a permit, the director of the lottery shall indicate upon the successful
bid that it was the successful bid and the number of video lottery terminals for which a permit is
awarded to the bidder. This shall be the number of video lottery terminals for which the bid was
submitted, or the remaining number of video lottery terminals to be awarded when the number of
video lottery terminals remaining is less than the number of terminals for which the bid was
submitted. Thereafter, a copy of the bid and the bidder's application for an operator's license or a
limited video lottery retailer license shall be maintained as a public record at the commissions'
offices and shall be open to public inspection during its normal business hours. These documents
may not be destroyed without the prior written consent of the legislative auditor;
(m) Prior to issuing a permit to a successful bidder, the bid price for the number of video
lottery terminals authorized in the permit plus the amount of the operator's annual license fee or the
limited video lottery retailer's annual license fee for the first license year, as specified in section 518
of this article, shall be paid to the commission by money order, certified check or cashier's check.
If the operator's annual license fee or the limited video lottery retailer's license fee was paid for the
current license year before the due date of the bid amount, the license fee shall not be collected a
second time for the same license year. The amount paid shall be deposited into the fund established
in section eighteen-a, article twenty-two of this chapter; and
(n) All permits shall be signed by the director of the lottery in the name of the state.
(o) If the successful bidder fails to pay to the commission the bid price and the operator's
annual license fee or the limited video lottery retailer's license fee for the first license year, at the
time specified by the commission, the bond provided for in section 1108 of this article shall be
forfeited and the bidder shall not be issued the permit.
(p) In the event of a default, as provided in subsection (h) of this section, the commission
shall then issue the permit to the next highest bidder for video lottery terminals, or reject all
remaining bids and start anew the bidding procedure for the remaining number of video lottery
terminals.
(q) If after a permit is awarded, an operator or limited video lottery retailer surrenders the
permit, in whole or in part, or the permit is revoked or canceled by operation of law, the commission may seek bids for video lottery terminals for which authorization was surrendered or revoked,
subject to the limitations and requirements of this article.
(r) During the fiscal year of the state ending the thirtieth day of June, 2011, the commission
shall seek bids for the ten-year period beginning the first day of July, 2011 and ending the thirtieth
day of June, 2021.
§29-22B-1108. Preference for current permit holders.
(a) When seeking bids for the ten-year period beginning the first day of July, 2011 and
ending the thirtieth day of June, 2021, and for each subsequent ten-year period, the commission
shall, in determining the amount a current holder of a permit issued under section 1106 of this article
shall pay for authorization to place additional video lottery terminals in this state, afford the bidder
an additional preference, if the bidder submitted at least the minimum bid amount prescribed by the
commission, the amount of which shall be determined as provided in subsection (b) of this section.
(b) The preference allowed by this section shall be computed by adding five percent of the
bid price submitted by the current permit holder to the amount of the bid submitted by that holder.
(c) Where the commission determines that it has not issued permits for the number of video
lottery terminals allowed to be placed in this state, as provided in section thirty-three of this article,
the commission shall allow current permit holders to bid on the remaining video lottery terminals
before opening up the bidding to other persons. If the highest bid meets or exceeds the minimum
bid, the commission shall determine whether, at the time of the bid, the bidder held a permit for the
period ending the thirtieth day of June, 2011, or for any ten-year period thereafter, on the thirtieth
day of June preceding the expiration of the permit. If the current permit holder submitted a bid that
was not less than the minimum bid, the commission shall notify the bidder that upon paying the
amount of the highest bid, that the permit for the ten-year period beginning the first day of July,
2011, or for any ten-year period thereafter, shall be issued to the current permit holder. If, within
the time determined by the commissioner, the current permit holder pays the amount to the
commission and complies with all other requirements imposed by the provisions of this article for
the issuance of the permit, the permit for the ten-year period beginning the first day of July, 2011,
or for any ten-year period thereafter, shall be issued to the current permit holder.
§29-22B-1109. Bid bond required.
(a) Each person submitting a bid under section 22B-1107 shall furnish to the commission a
bond at the time of bidding, which shall guarantee the payment of one hundred percent of the price
bid for the permit sought by the bidder.
(b) The bond required by this section shall be furnished in cash or negotiable securities or
shall be a surety bond issued by a surety company authorized to do business with the state or an irrevocable letter of credit issued by a financial institution acceptable to the commission.
(c) If the bid bond is furnished in cash or negotiable securities, the principal shall be
deposited without restriction in the state treasurer's office and credited to the commission, but any
income shall inure to the benefit of the bidder.
(d) The bond shall be returned to the bidder following the bidding if the bidder is not a
successful bidder for authorization to place video lottery terminals in this state, as provided in this
article.
(e) If the bidder is a successful bidder, the bid bond shall be released after the permit is
issued, as provided in section 1106 of this article.
(f) If a successful bidder defaults in paying the amount due by the date specified by the
commission, as provided in section 1106 of this article, the bid bond shall be forfeited to the state.
(g) If the defaulting bidder was successful only in part because the bid submitted was for
authorization to place more video lottery terminals than were awarded to the bidder, the amount of
the bid bond shall be prorated and the portion of the bid bond attributable to video lottery terminals
not awarded to the defaulting bidder shall be returned to the bidder and the rest shall be forfeited to
the state.
§29-22B-1110. Operator permit.
(a) An operator who holds a permit issued under this section shall be allowed to operate the
number of video lottery terminals specified in the permit.
(b) The number of video lottery terminals authorized in the permit shall be the sum of the
number of authorizations for which the operator is the successful bidder under this section plus the
number of authorizations reserved under section 222B-104 for video lottery retailers that elect to
obtain video lottery terminals from the operator. The operator shall apply to the commission for a
supplemental permit to operate the number of video lottery terminals set forth in the application.
Attached to the application shall be a true copy of all contracts the applicant has entered into with
persons who hold a limited video lottery retailer's license issued under this article for placement of
video lottery terminals in the premises of the limited video lottery retailer for whom authorizations
were reserved under section 22B-1104 and a true copy of the certificate of reservation issued by the
commission to that video lottery retailer.
(c) The contract between the operator and the limited video lottery retailer shall be in writing
and be signed by the parties, or their duly authorized representative when the party is a person who
is not an individual.
§29-22B-1111. Reduction of video lottery terminals authorized in a retailer's license.
If after a limited video lottery license is issued or a permit is issued, a retailer surrenders the license in whole or in part, or the license is modified, revoked or canceled by operation of law, the
lottery commission shall then allocate authorizations to operate those video lottery terminals through
the bid process described in section 1107 of this part 11, subject to the limitations and requirements
of this article.
§29-22B-1112. Reduction of gambling.
Each limited video lottery retailer shall conspicuously post in the restricted access adult-only
facility and disseminate the telephone numbers of state approved providers of problem gambling
information, treatment and referral support services and further conspicuously post the following:
"CAUTION Gambling and playing this machine can be hazardous to your health, your finances,
and your future."
§29-22B-1113. Operation of authorized video lottery terminals; forfeiture of authorization for
failure to operate.
(a) A person who holds a permit or license to operate video lottery terminals shall place the
video lottery terminals authorized by the license or permit in operation within six months after
receiving the license or permit in which the terminals are first authorized.
(b) After a video lottery terminal is connected to the commission's central site system of
monitoring lottery terminals, the terminal may not be off-line for more than sixty consecutive days,
unless the terminal is off-line due to fire, flood, or other act beyond the control of the operator. If
the terminal is off-line due to fire, flood, or other act beyond the control of the operator, the terminal
shall be reconnected to the commission's central site by the date ordered by the commission. The
commission shall propose a legislative rule for promulgation in accordance with the provisions of
article 29A-3-1, et seq., of this code, defining the term "other act beyond the control of the operator"
and providing for application of this subsection (b).
(c) Except as otherwise provided in this section, authorization to operate a video lottery
terminal that is not connected to the commission's central site system of monitoring lottery terminals
shall be forfeited to the commission on the first day after expiration of the applicable period
specified in this subsection (a) or (b) of this section.
Part 12. Placement and transportation of Video Lottery Terminals.
§29-22B-1201. Placement of video lottery terminals.
(a) Video lottery terminals allowed by this article may be placed only in licensed limited
video lottery locations approved by the commission.
(b) All video lottery terminals in approved locations shall be physically located as follows:
(1) The video lottery terminals shall be continuously monitored through the use of a closed
circuit television system capable of identifying players and terminal faces and of recording activity for a continuous twenty-four hour period. All video tapes or other recording medium approved in
writing by the commission shall be retained for a period of at least sixty days and be available for
viewing by an authorized representative of the commission or the commissioner of alcohol beverage
control. The cost of monitoring shall be paid by the limited video lottery retailer;
(2) Access to video lottery terminal locations shall be restricted to persons legally entitled
by age to play video lottery games;
(3) The permittee shall submit for commission approval a floor plan of the area or areas
where video lottery terminals are to be operated showing terminal locations and security camera
mount location; and
(4) No video lottery terminal or video lottery camera may be relocated without prior written
approval from the commission.
(c) Personnel of the limited video lottery retailer shall be present during all hours of operation
at each video lottery terminal location. These personnel shall make periodic inspections of the
restricted access adult-only facility in order to provide for the safe and approved operation of the
video lottery terminals and the safety and well-being of the players.
(d) Security personnel of the commission and investigators of the alcohol beverage control
commissioner shall have unrestricted access to video lottery terminal locations.
(e) Notwithstanding any other provision of this article to the contrary, the commission may
not approve the placement of a video lottery terminal in a state park.
§29-22B-1202. No limited video lottery retailer license for premises within 150 feet of another
licensed premises; no two license retailer locations within a common structure.
(a) A limited video lottery retailer license may not be granted for operation of video lottery
terminals on a premises if, at the time of application for the license, the applicant's premises are
within one hundred fifty feet of, or has an external structural connection not amounting to a common
internal wall to, a premises that already has a license for video lottery terminals and if the two
premises have one or more common owners.
(1) A measurement of the distance between two premises must be taken between the nearest
exterior wall of each premises.
(2) When determining common ownership, the commission shall consider direct as well as
indirect ownership.
(b) A premises for which a private club license to dispense alcoholic liquors, under
provisions of article seven, chapter sixty of this code, or a Class A nonintoxicating beer license,
under the provisions of article sixteen, chapter eleven of this code, was granted, was applied for, or
the transfer of which was validly contracted for prior to the first day of January, two thousand one, is not subject to subsection (a) of this section.
(c) No more than one restricted access adult-only facility shall hold a limited video lottery
retailer license to offer video lottery terminals in any single structure under one roof.
§29-22B-1203. Registration decals.
(a) Each video lottery terminal placed in operation in this state shall have a commission
registration decal permanently affixed, with a video lottery terminal registration control number
placed on the video lottery terminal.
(b) No person other than authorized commission personnel shall affix or remove a
registration control number. The affixing of the commission decal on a video lottery terminal
evidences that the terminal has been registered, inspected, and approved for operation in this state.
(c) No terminal shall be transported out of this state until authorized commission personnel
have removed the commission registration control number, except when the transportation of the
terminal both begins and ends in this state.
§29-22B-1204. Installation of approved lottery terminals.
(a) The video lottery terminal manufacturer and licensed permittee are jointly responsible for
the assembly and installation of all video lottery terminals and associated equipment.
(b) The manufacturer and licensed permittee may not change the assembly or operational
functions of a terminal licensed for placement in West Virginia unless a request for modification of
an existing video terminal prototype is approved in writing by the commission.
(c) The request for modification shall contain a detailed description of the type of change,
the reasons for the change and technical documentation of the change.
(d) Each video lottery terminal approved for placement at a licensed location shall conform
to the exact specifications of the video lottery terminal prototype tested and approved by the
commission.
(e) If any video lottery terminal or any video lottery terminal modification which has not
been approved by the commission is supplied by a manufacturer and operated by a licensed
permittee, the video lottery terminal shall be prima facie determined to be contraband. The
commission or any law-enforcement officer having jurisdiction shall seize and destroy all of the
licensed permittee's and manufacturer's noncomplying video lottery terminals, as provided in part
18 of this article.
(f) In addition, the commission shall suspend the licenses of the licensed permittee and the
licensed manufacturer for the period of time the commission considers to be appropriate under the
circumstances and may impose a civil penalty, as provided in part 16 of this article.
§29-22B-1205. Transportation from manufacturer and registration of video lottery terminals.
(a) A manufacturer transporting or arranging for the transportation of one or more video
lottery terminals into this state shall, prior to shipment, provide the commission with the following
information on forms prescribed by the commission:
(1) The full name and address of the person shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name and address of the permittee to which the video lottery terminals are being
sent and the destination of the terminals if different from the address of the permittee;
(4) The number of video lottery terminals in the shipment;
(5) The serial number of each video lottery terminal in the shipment;
(6) The model number and description of each video lottery terminal in the shipment; and
(7) The expected arrival date of the video lottery terminals at their respective destination
within this state.
(b) A permittee that purchases or leases a video lottery terminal shall, upon receipt of the
terminal, provide the commission with the following information on forms prescribed by the
commission:
(1) The full name and address of the limited video lottery retailer who will receive the video
lottery terminal;
(2) The full name and address of the manufacturer from whom the video lottery terminal was
received;
(3) The serial number of each video lottery terminal received;
(4) The model number and description of each video lottery terminal received;
(5) The date and time of video lottery terminal arrival; and
(6) The expected date and time of video lottery terminal installation.
(c) If a video lottery terminal is not placed in operation, the permittee shall notify the
commission in writing of the location where the terminal is stored.
§29-22B-1206. Any other transportation of video lottery terminals.
(a) Any person who transports a video lottery terminal from one location to another in this
state, other than for repair or servicing purposes, shall notify the commission in writing prior to the
transportation of the terminal and provide the following information on forms required by the
commission:
(1) The full name and address of the person or entity transporting the video lottery terminal;
(2) The reason for transporting the video lottery terminal;
(3) The full name and address of the person or entity to whom the terminal is being sent and
the destination of the video lottery terminal if it is different from the address;
(4) The serial and model number of the video lottery terminal;
(5) The video lottery terminal license number, if affixed;
(6) The manufacturer of the video lottery terminal; and
(7) The expected date and time of video lottery terminal installation or reinstallation.
(b) Any person shipping video lottery terminals to a destination outside of this state shall,
prior to the shipment, provide the commission with the following information on forms prescribed
by the commission:
(1) The full name and address of the person shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name and address of the person to whom the video lottery terminals are being
sent and the destination of the video lottery terminals if different from the address;
(4) The serial number of each video lottery terminal being shipped;
(5) The model number and description of the video lottery terminal being shipped;
(6) The video lottery terminal control number, if affixed;
(7) The manufacturer of the video lottery terminal being shipped; and
(8) The expected date and time of the shipment.
Part 13. Maintenance and repair of Video Lottery Terminals.
§29-22B-1301. Maintenance of video lottery terminals.
(a) No video lottery terminal may be placed in operation in this state until the manufacturer
provides training in the service and repair of each approved video lottery terminal model and service
technicians complete the training.
(b) Manufacturers shall submit to the commission the following information on each training
program conducted:
(1) An outline of the training curriculum;
(2) A list of the instructors and their qualifications;
(3) Instructional materials; and
(4) The time, dates and location of the training programs.
(c) Manufacturers shall notify all licensed permittees who have purchased or leased that
manufacturer's video lottery terminals of all scheduled training programs.
(d) The manufacturers shall schedule training programs at convenient locations within this
state to facilitate attendance by service technicians.
(e) Manufacturers shall inform licensed permittees of any new developments in the service
and repair of video lottery terminals and provide appropriate subsequent training programs.
(f) The manufacturers shall issue a training certificate to each person upon successful completion of a video lottery training program.
(g) The certificate shall include the name of the person who completed the training program
and the date and the location of the training program.
(h) A person who successfully completes training is eligible for a service technician's license.
(i) No person may conduct maintenance (other than clearing paper ticket jams or clearing
coin and bill acceptor jams) on any video lottery terminal or associated equipment unless the
commission has issued a service technician license to that person.
(j) Each manufacturer shall file with the commission the following information within two
weeks after the completion of a training program:
(1) The name of each person who attended and completed the training program;
(2) The name of the manufacturer offering the course;
(3) The manufacturer's video lottery terminal models on which training for service and repair
was provided;
(4) The date and location of the training program; and
(5) Copies of all certificates of completion.
§29-22B-1302. Maintenance log.
A written maintenance log shall be kept within the main cabinet access area in each video
lottery terminal. Every person, including lottery personnel, who gains entry into any internal space
of a video lottery terminal shall sign the log, record the time and date of entry, record the mechanical
meter readings and list the areas inspected or repaired. The maintenance log forms shall be retained
by permittees for a period of three years from the date of the last entry. The maintenance logs shall
be available upon request for inspection by the commission.
§29-22B-1303. Master keys.
Permittees shall provide the commission with a master key for access into the main cabinet
door of each video lottery terminal placed in operation. The commission shall provide a logic box
seal. The seal shall be affixed by commission personnel to prevent unauthorized access to the video
lottery terminal logic unit.
§29-22B-1304. Repairs to logic board or circuitry.
(a) No repairs to, or replacement of, the logic board or circuitry within the logic area shall
occur unless authorized commission personnel are present and observe the repairs or replacement.
(b) The logic area seal shall not be broken by anyone other than authorized commission
personnel.
(c) Each service technician shall submit a written report to the commission within
twenty-four hours after the repairs or replacement are completed and the report shall include the serial number of any replacement board and the new logic area seal number.
(d) The commission shall test the software EPROMS on the logic board of each video lottery
terminal prior to sealing the logic area.
(e) License holders shall promptly notify the commission in writing of any discovered
damage, tears or breaks in the logic area seal. This written notification shall be delivered
electronically or by telephone facsimile machine whenever possible. Upon receipt of that notice,
the commission shall disable the video lottery terminal. The video lottery terminal shall remain
disabled until completion by the commission of an investigation of the seal damage.
Part 14. Net Terminal Income and Distribution of Revenues.
§29-22B-1401. Accounting for the state's share of gross terminal income.
(a) The gross terminal income from all operating video lottery terminals of a permittee shall
be calculated periodically by the commission.
(b) Each licensed permittee shall maintain in its bank account an amount equal to or greater
than the lottery commission's share of the gross terminal income from its operation of video lottery
machines, to be electronically transferred by the lottery commission on dates established by the
commission.
(c) Upon a permittee's failure to maintain the bank account balance required in subsection
(b) of this section, the commission may disable all of a permittee's video lottery terminals until full
payment of all amounts due is made.
(d) Interest shall accrue on any unpaid balance due the commission at the rates charged for
state income tax delinquency under chapter eleven of this code. The interest shall begin to accrue
on the date payment is due to the commission and shall continue to accrue until the amount due,
including applicable interest, is paid. Payments shall be applied first to interest and then to the
balance of the amount due the commission.
§29-22B-1402. Resolution of discrepancies.
(a) The commission's central control computer shall keep accurate records of all income
generated by each video lottery terminal. The commission shall prepare and send to the permittee
a statement by mail, facsimile or internet e-mail reflecting the gross terminal income generated by
the licensee's video lottery terminals. Each permittee shall report to the commission any
discrepancies between the commission's statement and each terminal's mechanical and electronic
meter readings.
(b) The permittee 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.
(c) The permittee is solely responsible for paying the negotiated share of net terminal income,
to each limited video lottery retailer to whom it has supplied video lottery terminals under the
provisions of this article.
(d) Each limited video lottery retailer's periodic distribution from the appropriate operator
shall be paid by check or by electronic funds transfer to the limited video lottery retailer's designated
bank account.
(e) Until an accounting discrepancy is resolved in favor of the permittee, the commission may
make no credit adjustments.
(f) For any video lottery terminal reflecting a discrepancy, the permittee 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.
(g) If the meter readings and the commission's records cannot be reconciled, final disposition
of the matter shall be determined by the commission.
(h) Any accounting discrepancies that cannot be otherwise resolved shall be resolved in favor
of the commission.
§29-22B-1403. Payover of state's share of gross terminal income.
(a) The commission shall periodically transfer from each permittee's bank account described
in subsection 22B-1401(b) the state's share of gross terminal income as calculated under section
22B-1408.
(b) The permittee shall remit payment by mail if the electronic transfer of funds is not
operational or the commission notifies the permittee that remittance by this method is required.
(c) The permittee 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 the state's
share of the amount 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.
(d) A permittee 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.
§29-22B-1404. Permittees to furnish bank authorizations.
(a) Each permittee shall furnish to the commission all information and bank authorizations required to facilitate the timely transfer of moneys to the commission and from the commission to
each permittee.
(b) Each permittee shall provide the commission thirty days' advance notice of any proposed
account changes in order to assure the uninterrupted electronic transfer of funds.
§29-22B-1405. State's share of gross terminal income held in trust.
The amount of gross terminal income required to be paid over to the commission, shall be
deemed to be moneys held in trust for the state of West Virginia while in the possession or
constructive possession of any operator or limited video lottery retailer and until the state's share of
gross terminal income is paid over to the commission.
§29-22B-1406. Examination of permittee books and records.
The commission has the right to examine all accounts, bank accounts, financial statements
and records in a permittee's possession, under its control or in which it has an interest and the
licensed permittee shall 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.
§29-22B-1407. Civil penalty for failure to pay over state's share of gross terminal income.
(a) Any person required by law or contract to collect, truthfully account for, and pay over any
of the state's share of gross terminal income who willfully fails to truthfully account for and pay over
the net terminal income, or willfully attempts in any manner to evade or defeat any payment thereof,
shall, in addition to other penalties provided by law, be liable for payment of a civil money penalty
equal to the total amount of the state's share of gross terminal income not paid over to the
commission.
(b)(1) No penalty may be imposed under subsection (a) unless the director notifies the person
in writing, delivered in person or by mail sent to the last known address of the operator or limited
video lottery retailer, that he or she is subject to an assessment of this penalty.
(2) The mailing of the notice described in subdivision (1) (or, in the case of notice delivered
in person, the delivery) shall precede any notice and demand for payment of any penalty under
subsection (a)of this section, by at least sixty days.
(3) If a notice described in subdivision (1) of this subsection (b) with respect to any penalty
is mailed or delivered in person before the expiration of the three-year period for the assessment of
the penalty (determined without regard to this subdivision), the three-year period provided for the
assessment of a penalty shall not expire before the later of:
(A) The date ninety days after the date on which such notice was mailed, or delivered in
person, or
(B) If there is a timely protest of the proposed assessment, the date thirty days after the director makes a final administrative determination with respect to the protest.
(4) The requirement that preliminary notice be given shall not apply if the director finds that
the collection of the penalty is in jeopardy.
(c) This penalty may be collected by civil action instituted within three years after the date
the state's share of gross terminal income not paid over to the commission should have been paid
over to the commission, except as provided in subsection (b) of this section.
(d) If more than one person is liable for the penalty under subsection (a) with respect to any
payment of the state's share of gross terminal income, each person who paid the penalty shall be
entitled to recover from other persons who are liable for the penalty an amount equal to the excess
of the amount paid by the person over that person's proportionate share of the penalty. Any claim
for such a recovery may be made only in a proceeding which is separate from, and is not joined or
consolidated with, an action for collection of such penalty brought by the state of West Virginia.
(e) No penalty shall be imposed by subsection (a) on any unpaid, volunteer member of any
board of trustees or directors of an organization exempt from tax under section 501 of the Internal
Revenue Code of 1986, as amended, if such member:
(1) Is solely serving in an honorary capacity;
(2) Does not participate in the day-to-day or financial operations of the organization; and
(3) Does not have actual knowledge of the failure on which the penalty is imposed.
This subsection (e) shall not apply if it results in no person being liable for the penalty
imposed by subsection (a) of this section.
§29-22B-1408. Distribution of state's share of gross terminal income.
(a) The state's share of gross terminal income is calculated as follows:
(1) The commission shall deposit two percent of gross terminal income into the state lottery
fund for the commission's costs and expenses incurred in administering this article. From this
amount, not less than one hundred fifty thousand dollars nor more than one million dollars per fiscal
year, as determined by the commission each year, shall be transferred to the compulsive gambling
treatment fund created in section 29-22A-19 of this chapter. In the event that the percentage allotted
under this subsection for the commission's costs and expenses incurred in administering this article
generates a surplus, the surplus shall be allowed to accumulate to an amount not to exceed two
hundred fifty thousand dollars. On a monthly basis, the director shall report to the joint committee
on government and finance of the Legislature any surplus in excess of two hundred fifty thousand
dollars and remit to the state treasurer the entire amount of those surplus funds in excess of two
hundred fifty thousand dollars to be deposited in the fiscal enhancement fund established in section
22B-1409;
(2) Gross profits are determined by deducting, from the balance of gross terminal income
remaining after deduction of the percentage described in subdivision (1) of this subsection, the
percentage described in subdivision (3) of this subsection.
(3) Net terminal income is the percentage of gross profits prescribed in this section. The
commission shall deposit thirty percent of gross profits as provided in subdivision (2) of this
subsection. On the first day of June, two thousand two, the commission shall calculate the aggregate
average daily gross terminal income for all operating video lottery terminal during the preceding
three month period. Thereafter, the commission shall make the calculation on the first day of the
month preceding the months of October, January, April and July of each year. So long as the
aggregate average gross terminal income per day for the operating video lottery terminals does not
exceed sixty dollars, the commission's share of gross profits shall continue to be thirty percent for
the succeeding quarter of the year beginning the first day of July. Beginning on the first day of July,
2001 and the first days of October, January, April and July in 2001 and thereafter, if the
commission's calculation of aggregate average daily gross terminal income per video lottery
terminal yields an amount greater than sixty dollars, one of the following schedules will apply: If
the amount is greater than sixty dollars per day but not greater than eighty dollars per day, the
commission's share of gross profits for the ensuing fiscal year beginning the first day of the quarter
of the year described in this subdivision shall be thirty-four percent; if the amount is greater than
eighty dollars per day but not greater than one hundred dollars per day, the commission's share of
gross profits for the ensuing fiscal year beginning the first day of the quarter of the year described
in this subdivision shall be thirty-eight percent; if the amount is greater than one hundred dollars
per day but not greater than one hundred twenty dollars per day, the commission's share of gross
profits for the ensuing fiscal year beginning the first day of the quarter of the year described in this
subdivision shall be forty-two percent; if the amount is greater than one hundred twenty dollars per
day but not greater than one hundred forty dollars per day, the commission's share of gross profits
for the ensuing fiscal year beginning the first day of the quarter of the year described in this
subdivision shall be forty-six percent; if the amount is greater than one hundred forty dollars per
day, the commission's share of gross profits for the ensuing fiscal year beginning the first day of the
quarter of the year described in this subdivision shall be fifty percent.
(b) Net terminal income shall be distributed by the commission as follows:
(1)(A) Beginning the first day of July, 2001, a county and the incorporated municipalities
within that county shall receive two percent of the net terminal income generated by limited video
lottery terminals located within the county;
(B) From this two percent of net terminal income, each municipality shall receive a share that bears the same proportion to the total two percent of net terminal income as the population of the
municipality bears to the total population of the county as determined by the most recent decennial
United States census of population, and the county shall receive the remaining portion of the two
percent of net terminal income; and
(2) Any remaining funds shall be deposited into the state excess lottery revenue fund
established in section eighteen-a, article twenty-two of this chapter.
(c) The licensed operators shall receive the balance of gross terminal income remaining after
deduction of the state's share as calculated pursuant to this section.
Part 15. Appeal of Order of the Commission.
§29-22B-1501. Appeal of order.
(a) Any applicant or license holder adversely affected by an order issued under this article
has the right to a hearing on the order before the commission or a person designated as hearing
examiner, if a petition in writing requesting a hearing is served upon the commission within ten days
following the receipt of the order by the applicant, or license holder.
(b) A petition for hearing shall be served on the commission by delivery in person at the
primary office of the commission or by certified mail. By procedural rule, the commission may
allow other methods of service.
(c) The service of a petition for hearing upon the commission shall not operate to suspend
the execution of any suspension or revocation of a video lottery license or any other order of the
commission with respect to which a hearing is being demanded.
(d) The commission shall set a date for any hearing demanded and notify the person
demanding the hearing not later than ten days before the hearing date of the date, time and place of
the hearing. The hearing shall be held within thirty days after receipt of the petition.
§29-22B-1502. Contents of petition for hearing; security.
(a) A petition for a hearing shall be in writing and shall include an original and one copy.
The petition shall contain the following:
(1) A clear and concise statement of each error which the petitioner alleges to have been
committed by the commission in refusing to issue a license, or suspending or revoking a license,
with each assignment of error being shown in separately numbered paragraphs;
(2) A clear and concise statement of fact upon which the petitioner relies as sustaining each
assignment of error;
(3) A prayer setting forth the relief sought;
(4) The signature of the petitioner; and
(5) Verification by the petitioner.
(b) The person demanding a hearing shall give security for the cost of the hearing in the
amount of three hundred dollars in the form of a certified check, cashier's check or money order,
which shall accompany the petition demanding a hearing.
§29-22B-1503. Hearing procedures.
(a) Hearings held under this article shall be subject to the provisions of article 29A-5-1,
et
seq., of this code except to the extent otherwise provided in this article. In case of any conflict, the
provisions of this article shall control.
(b) In all hearings held under this article, oral and documentary evidence may be required
through the use of subpoenas and subpoenas duces tecum. The subpoenas or subpoenas duces tecum
may be issued by either the commission or its duly appointed hearing examiner, and the following
provisions shall govern and control:
(1) Every subpoena or subpoena duces tecum shall be served at least five days before the
return date thereof, either by personal service made by any person eighteen years of age or older, or
by registered or certified mail, but a return acknowledgment signed by the person to whom the
subpoena or subpoena duces tecum is directed is required to prove service by registered or certified
mail;
(2) All subpoenas and subpoenas duces tecum shall be issued in the name of the commission.
Service of subpoenas and subpoenas duces tecum issued at the insistence of the commission is the
responsibility of the commission, but any party requesting issuance is responsible for service. Any
person who serves any subpoena or subpoena duces tecum is entitled to the same fee as sheriffs who
serve witness subpoenas for the circuit courts of this state, and fees for the attendance and travel of
witnesses shall be the same as for witnesses before the circuit courts of this state;
(3) All fees shall be paid by the commission if the subpoena or subpoena duces tecum is
issued, without the request of an interested party, at the insistence of the commission;
(4) All fees related to any subpoenas or subpoena duces tecum issued at the insistence of an
interested party shall be paid by the interested party;
(5) All requests by an interested party for a subpoena and subpoena duces tecum shall be in
writing and shall contain a statement acknowledging that the requesting party agrees to pay the fees;
and
(6) Any person receiving a subpoena or subpoena duces tecum issued under this section shall
honor the subpoena or subpoena duces tecum as though it were issued by a circuit court of this state,
and shall appear as a witness or produce such books, records or papers in response to the subpoena
or subpoena duces tecum. In case of disobedience or neglect of any subpoena or subpoena duces
tecum served on any person or the refusal of any witness to testify to any matter regarding which he or she may be lawfully interrogated, the circuit court of the county in which the hearing is being
held, or the judge thereof in vacation, shall, upon application by the commission, compel obedience
by contempt proceedings as in the case of disobedience of the requirements of a subpoena or
subpoena duces tecum issued from the circuit court or a refusal to testify in the circuit court.
(c) Hearings may not be delayed by a motion for continuance made less than seven days
before the date set for the hearing.
(d) The commission may designate a hearing examiner to conduct the hearing.
(e) The petitioner may appear individually, or by legal counsel.
(f) The petitioner, or his or her duly authorized representative, may, with the approval of the
commission, waive the right to a hearing and agree to submit the case for decision upon the petition
and record, with or without a written brief. The waivers and agreements shall be in writing or upon
the record.
(g) The petitioner shall be given an opportunity for argument within the time limits fixed by
the commission following submission of evidence. The commission, upon request of the petitioner,
shall accept briefs in addition to or in lieu of argument. Briefs shall be filed within ten days after
the hearing date.
(h) The commission may admit any relevant evidence, except that it shall observe the rules
of privilege recognized by law. A finding is to be supported by the kind of evidence commonly
relied upon by reasonably prudent men in the conduct of their affairs, whether or not the evidence
would be admissible before a jury. The commission may exclude any evidence which is irrelevant,
unduly repetitious, or lacking in substantial probative effect.
(i) A record shall be made of all hearings held pursuant to this article. Testimony may be
recorded electronically or by a court reporter.
(j) After the conclusion of the hearing and within ten days of receipt of the transcript of the
hearing, and receipt of any briefs, the person designated by the commission as hearing examiner
shall prepare a recommended decision, supported by findings of fact and conclusions of law,
affirming, modifying or vacating the earlier order of the commission. Thereafter, the commission,
within ten days of receipt of the recommended decision, shall either accept or reject the
recommended decision, and if it accepts the decision, it shall cause the director to sign and
acknowledge the decision as its own, after having reviewed the transcript and all exhibits attached
and affixed to the decision; if the commission rejects the decision, it shall within ten days of receipt
of the recommended decision prepare a decision setting forth its own findings of fact and
conclusions of law. In either event, the decision is final unless vacated or modified upon judicial
review of the decision. A copy of the decision shall be served upon each party to the hearing and their attorney of record, if any, in person or by registered or certified mail.
§29-22B-1504. Judicial review.
The applicant or license holder who filed the petition for administrative review may appeal
the decision of the commission issued under section 22B-1503 to the circuit court of Kanawha
County, West Virginia, if the petition for appeal is filed no later than thirty days after the date upon
which the petitioner receives written notice of the final decision of the commission.
Part 16. Civil Penalties.
§29-22B-1601. Imposition of civil penalties by the commission.
The commission may impose the civil penalties provided for in this part 16. These civil
penalties may be imposed in conjunction with one or more other civil penalties provided in this part
16 and in conjunction with a license suspension or revocation or other administrative action taken
against a licensee, or as a result of an action or inaction by a licensee for which the commission is
also seeking criminal prosecution.
§29-22B-1602. Civil penalties applicable to limited video lottery retailers.
(a) For allowing persons under age twenty-one to play video lottery games, the limited video
lottery retailer shall be fined:
(1) One hundred dollars for a first violation;
(2) One thousand dollars for a second violation; and
(3) Five thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by five
thousand dollars.
(b) For allowing persons under age twenty-one to be present at a video lottery terminal or in
the immediate area where video lottery terminals are present, the limited video lottery retailer may
be fined:
(1) One hundred dollars for a first violation;
(2) Two hundred dollars for a second violation; and
(3) Three hundred dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by one
hundred dollars.
(c) For allowing a person or persons to tamper in any way with, or disconnect, any data line
or feature that allows the state's central control computer to communicate with each video lottery
terminal in the premises, the limited video lottery retailer may be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by ten
thousand dollars.
(d) For entering the logic area of a video lottery terminal or allowing an unauthorized person
or persons to enter the logic area of a video lottery terminal, or tampering in any way with the lottery
security seal, any EPROM or other chip or memory device installed in the logic area, whether or not
any tampering would alter any characteristic of the video lottery terminal, the limited video lottery
retailer may be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by ten
thousand dollars.
(e) For failure to aim or focus a closed circuit television camera on all video lottery terminals
in the premises or for failure to record all video lottery terminals during the hours of operation of the
limited access adults-only facility, the limited video lottery retailer shall be fined:
(1) One hundred dollars for a first violation;
(2) One thousand dollars for a second violation; and
(3) Five thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by five
thousand dollars.
§29-22B-1603. Civil penalties applicable to service technicians.
(a) For entering the logic area of any video lottery terminal at any time when a representative
of the West Virginia Lottery Commission is not present and observing the process, the service
technician shall be fined:
(1) One hundred dollars for a first violation;
(2) One thousand dollars for a second violation; and
(3) Three thousand dollars for a third violation.
(b) For each subsequent violation, the fine imposed by the commission shall increase by one
thousand dollars. If two or more service technicians participate in violation of this section, each
service technician shall be fined according to this schedule.
§29-22B-1604. Civil penalties applicable to permittees.
(a) For employing or contracting with persons, other than service technicians licensed by the
commission, to repair video lottery terminals, the permittee shall be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
For each subsequent violation, the fine imposed by the commission shall increase by ten
thousand dollars.
(b) For acquiring, or installing in licensed premises, any video lottery terminal that has not
been manufactured and supplied by a licensed manufacturer, that has not also been tested and
approved by the commission's independent testing laboratory, and that has not been approved for
use in this state by the commission, the permittee shall be fined:
(1) Five thousand dollars for a first violation;
(2) Ten thousand dollars for a second violation.
(c) For each subsequent violation, the fine imposed by the commission shall increase by ten
thousand dollars.
§29-22B-1605. Civil penalties applicable to manufacturers.
(a) For shipping a video lottery terminal into this state to a person who does not have a permit
issued by the commission under this article, the manufacturer shall be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
(b) For each subsequent violation, the fine imposed by the commission shall increase by ten
thousand dollars.
(c) For shipping a video lottery terminal into this state that is not identical to a video lottery
terminal make and model approved by the commission, including the electronic computer
components, the random number generator, the coin acceptor, the bill acceptor, and the cabinet in
which the video lottery terminal is housed, the manufacturer shall be fined:
(1) One thousand dollars for a first violation;
(2) Five thousand dollars for a second violation; and
(3) Ten thousand dollars for a third violation.
(d) For each subsequent violation, the fine imposed by the commission shall increase by ten
thousand dollars.
§29-22B-1606. Civil penalties for failure of licensees to perform duties.
A person who fails to perform any of the duties or obligations created and imposed upon
them by the provisions of this article or legislative rule of the commission is subject to a civil penalty
as may be determined by the commission in an amount not to exceed ten thousand dollars.
§29-22B-1607. Civil action to collect penalty.
(a) The commission may collect any money penalty imposed pursuant to this article by
instituting civil action in any court of this state having jurisdiction over the named defendant.
(b) Collection shall be barred unless the civil action is commenced within six years after the
later of (1) the date on which the prohibited conduct establishing the cause of action occurred, or (2)
the date on which the commission first knew or should reasonably have known the prohibited
conduct had occurred.
Part 17. Criminal Offenses.
§29-22B-1701. Financial interest of director, etc.; receiving reward from interested party;
criminal penalty; application of bribery statute.
(a) Neither the director of the commission, nor any member or employee of the commission,
may be financially interested, or have any beneficial personal interest, direct or indirect, in any
person furnishing video lottery terminals or video lottery games, or in any person who is a bidder
for video lottery terminals, or who is a holder of a license issued under this article.
(b) Neither the director of the commission, nor any member or employee of the commission,
may accept or receive, directly or indirectly, from any person known by the director, commission
member or employee of the commission to be interested in any bid, contract or licensee under this
article, by rebate, gift or otherwise, any money or other thing of value whatsoever, or any promise,
obligation or contract for future reward, or compensation.
(c) A person who violates this section shall be guilty of a misdemeanor and, upon conviction
thereof, shall be confined in jail not less than three months nor more than one year, or fined not less
than fifty nor more than one thousand dollars, or both, in the discretion of the court:
Provided, That
any person who violates any of the provisions of subsection (b) of this section under circumstances
constituting the crime of bribery under the provisions of section 61-5A-3 of this code, shall, upon
conviction of bribery, be punished as provided in article 61-5A-1,
et seq., of this code.
§29-22B-1702. Criminal penalties for unlawful inducement.
(a) Any person who gives another person any thing of value to induce the other to refrain
from bidding for a video lottery permit is guilty of a misdemeanor and, upon conviction, shall be
fined not more than ten thousand dollars and, in addition, shall be subject to a civil penalty payable
to the commission of five hundred thousand dollars.
(b) Any person who gives a person any thing of value to induce the other to refrain from
placing a video lottery terminal at a restricted access adult-only facility is guilty of a misdemeanor
and, upon conviction, shall be fined not more than ten thousand dollars and, in addition, shall be
subject to a civil penalty payable to the commission of five hundred thousand dollars.
§29-22B-1703. Criminal penalty for unauthorized game on authorized video lottery terminal.
(a) A licensee who places a video lottery game on a video lottery terminal that is allowed
under this article without authority of the commission to do so is guilty of a misdemeanor and, upon
conviction thereof, shall for a first conviction be confined in a county or regional jail for a term of
not more than one year, and fined not more than five thousand dollars, except that, in the case of a
person other than an individual, the amount of the fine imposed may be not more than twenty-five
thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for a term of not less
than one year nor more than three years and fined not less than five thousand dollars nor more than
ten thousand dollars, except that in the case of a person other than an individual, the fine may not
be less than twenty-five thousand dollars nor more than fifty thousand dollars.
§29-22B-1704. Criminal penalty for unauthorized video lottery terminal.
(a) A licensee who places a video gambling machine into play is guilty of a misdemeanor
and, upon conviction thereof, shall for a first conviction be confined in a county or regional jail for
a term of not more than one year, and fined not less than five thousand dollars nor more than ten
thousand dollars, except that, in the case of a person other than an individual, the fine may not be
less than twenty thousand dollars nor more than thirty thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for a term of not less
than one year nor more than three years and fined not less than ten thousand dollars nor more than
twenty thousand dollars, except that in the case of a person other than an individual, the fine may
not be less than twenty-five thousand dollars nor more than fifty thousand dollars.
§29-22B-1705. Criminal penalty for possession of video gambling machine.
(a) After December 31, 2001, any person who has a video gambling machine in their actual
or constructive possession in this state is guilty of a felony and, upon conviction thereof, shall for
a first conviction be confined in a state correctional facility for a term of not less than one year nor
more than three years, and fined not less than fifty thousand dollars nor more than one hundred
thousand dollars, for each video gambling machine in the person's actual or constructive possession
in this state, except that, in the case of a person other than an individual, the fine may not be less than
one hundred thousand dollars nor more than five hundred thousand dollars for each video gambling
machine in the person's actual or constructive possession in this state.
(b) For any second or subsequent conviction under this section the person shall be confined
in a state correctional facility for a term of not less than two years nor more than five years, and fined not less than one hundred thousand dollars nor more than five hundred thousand dollars, for each
video gambling machine in their actual or constructive possession in this state, except that, in the
case of a person other than an individual, the fine may not be less than five hundred thousand dollars
nor more than one million dollars for each video gambling machine in the person's actual or
constructive possession in this state.
§29-22B-1706. Criminal penalty for expired operator or limited video lottery retailer's license.
(a) A person who operates, carries on or exposes for play a video lottery game or video
lottery terminal after the person's license has expired and prior to the actual renewal of the license
is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be confined in
a county or regional jail for not more than one year or fined not less than one thousand dollars nor
more than five thousand dollars, except that, in the case of a person other than an individual, the
amount of the fine imposed may not be less than ten thousand dollars nor more than twenty-five
thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for a term of not less
than one year nor more than three years and fined not less than ten thousand dollars nor more than
twenty thousand dollars, except that in the case of a person other than an individual, the fine may
not be less than twenty-five thousand dollars nor more than fifty thousand dollars.
§29-22B-1707. Criminal penalty for possession of altered or nonconforming video lottery
terminal, device or related material.
(a) A person who possesses any video lottery terminal that is not a video gambling machine
or possesses any other device, equipment or material which the person knows has been
manufactured, distributed, sold, tampered with or serviced in violation of the provisions of this
article is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be
confined in a county or regional jail not more than one year and fined not less than one thousand
dollars nor more than five thousand dollars, except that, in the case of a person other than an
individual, the amount of the fine imposed may be not less than five thousand dollars nor more than
twenty-five thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for a term of not less
than one year nor more than three years and fined not less than five thousand dollars nor more than
twenty-five thousand dollars, except that in the case of a person other than an individual, the fine
may not be less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1708. Criminal penalty for tampered game, terminal, device or other equipment.
(a) A person who knowingly conducts, carries on, operates or exposes for play, or allows to
be conducted, carried on, operated or exposed for play, any video lottery game, video lottery
terminal or other device, equipment or material which has in any manner been tampered with or
placed in a condition or operated in a manner the result of which tends to deceive the public or tends
to alter the normal random selection of characteristics or the normal chance of the video lottery game
which could determine or alter the result of the game is guilty of a misdemeanor and, upon
conviction thereof, shall for a first conviction be confined in a county or regional jail not more than
one year and fined not less than one thousand dollars nor more than five thousand dollars, except
that, in the case of a person other than an individual, the amount of the fine imposed may be not less
than twenty-five thousand dollars nor more than fifty thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for a term of not less
than one year nor more than three years and fined not less than five thousand dollars nor more than
twenty-five thousand dollars, except that in the case of a person other than an individual, the fine
may be not less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1709. Criminal penalty for deceptive practices.
(a) A person who knowingly conducts, carries on, operates or exposes for play, or allows to
be conducted, carried on, operated or exposed for play, any video lottery game, video lottery
terminal, data line connection with the central control computer, or other device, equipment or
material which has in any manner been tampered with or placed in a condition or operated in a
manner the result of which tends to deceive the state lottery commission or tends to alter the accurate
recording of credits played and credits won by the commission's central control computer, or the
central control computer's ability to disable and cause not to operate any or all video lottery
terminals of a licensed limited video lottery retailer, for the first offense is guilty of a misdemeanor
and, upon conviction thereof, shall be confined in a county or regional jail not more than one year
and fined not more than five thousand dollars, except that, in the case of a person other than an
individual, the amount of the fine imposed may be not more than fifty thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for at least one year
but not more than five years, and fined not less than one thousand dollars nor more than five
thousand dollars, except that when the person is not an individual, the amount of the fine imposed
may be not less than five thousand dollars nor more than fifty thousand dollars.
§29-22B-1710. Employment of unlicensed person who is required to be licensed.
(a) A person who employs or continues to employ an individual not issued a license under the provisions of this article in a position with duties which would require a license under the
provisions of this article is guilty of a misdemeanor and, upon conviction thereof, shall for a first
offense be confined in a county or regional jail for not more than one year and fined not more than
five thousand dollars, except that, in the case of a person other than an individual, the amount of the
fine imposed may be not more than twenty-five thousand dollars.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for a term of not less
than one year nor more than three years, and fined not less than five thousand dollars nor more than
twenty-five thousand dollars, except that, in the case of a person other than an individual, the fine
may not be less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1711. Criminal penalty for unlicensed person to work in a position for which license
is required.
(a) An individual who is required by this article to obtain a license from the commission to
work as a limited video lottery retailer or service technician but who works as a limited video lottery
retailer or service technician without obtaining the requisite license, as provided for in this article,
or is employed in a position with duties which would require a license under the provisions of this
article is guilty of a misdemeanor and, upon conviction thereof, shall be confined in a county or
regional jail not more than one year and fined not more than ten thousand dollars.
(b) A second and each subsequent offense under this section shall be a misdemeanor and,
upon conviction thereof, the person shall be confined in a county or regional jail for a term not to
exceed one year and fined not less than five thousand dollars nor more than twenty thousand dollars.
§29-22B-1712. Criminal penalty for use of device that gives player an unauthorized
advantage.
(a) A person who, while a video lottery game is being played, uses, or assists another person
in the use of, an electronic, electrical or mechanical device which is designed, constructed or
programmed specifically for use in obtaining an advantage at playing any video lottery game is
guilty of a felony and, upon conviction thereof, shall for a first offense be confined in a state
correctional facility for at least one year but not more than five years, or shall be fined not less than
one thousand dollars nor more than five thousand dollars, or both.
(b) A second and each subsequent offense under this section shall be a felony and, upon
conviction thereof, the person shall be confined in a state correctional facility for a term of not less
than one year nor more than three years, and fined not less than five thousand dollars nor more than
twenty-five thousand dollars, except that, in the case of a person other than an individual, the fine
may be not less than fifty thousand dollars nor more than one hundred thousand dollars.
§29-22B-1713. Criminal penalty for violation of rules of play.
A person who knowingly violates a provision of this article or the rules of play or game rules
of a video lottery game, and who profits thereby in an amount equal to one thousand dollars or more,
is guilty of a felony and, upon conviction thereof, shall be imprisoned in the state correctional
facility not less than one nor more than ten years or, in the discretion of the court, be confined in jail
for not more than one year and be fined not less than two thousand dollars nor more than five
thousand dollars. If the person profits thereby in an amount less than one thousand dollars, that
person is guilty of a misdemeanor and, upon conviction thereof, shall be confined in a county or
regional jail for a term not to exceed one year or fined an amount not less than one thousand dollars
nor more than two thousand five hundred dollars, or both.
Part 18. Seizure and Destruction of Contraband; Forfeitures.
§29-22B-1801. Video gambling machines declared contraband.
Effective January 1, 2001, and thereafter, video gambling machines are per se illegal
gambling devices which may be seized and destroyed as illegal contraband by any law-enforcement
agency having jurisdiction over the political subdivision in which the device is found, and the owner
or owners of the device have no right to compensation for the seizure and destruction of any video
gambling machine.
§29-22B-1802. Legislative findings regarding seizure and sale of video gambling machines and
other property.
The Legislature hereby finds and declares that the seizure and sale of items under the
provisions of this part 18 is not contemplated to be a forfeiture as the same is used in article 12,
section 5 of the West Virginia Constitution and, to the extent that a seizure and sale may be found
to be such a forfeiture, the Legislature hereby finds and declares that the proceeds from a seizure and
sale under this article is not part of net proceeds as the same is contemplated by such article 12,
section 5 of the West Virginia Constitution.
§29-22B-1803. Items subject to forfeiture.
(a) The following items are subject to forfeiture:
(1) Any video gambling machine present in this state after January 1, 2001;
(2) All property found with the video gambling machine that in any way facilitates its
operation for any purpose;
(3) Any video lottery terminal registered under this article that is found on the premises
where a video gambling machine is found;
(4) All conveyances, including aircraft, vehicles or vessels, which are used, have been used,
or are intended for use, to transport, or in any manner to facilitate the transportation, sale, receipt, possession or concealment of a video gambling machine, except as follows:
(A) No conveyance used by any person as a common carrier in the transaction of business
as a common carrier shall be forfeited under this section unless it appears that the person owning
such conveyance is a consenting party or privy to a violation of this article;
(B) No conveyance shall be forfeited under the provisions of this article if the person owning
the conveyance establishes that he or she neither knew, nor had reason to know, that the conveyance
was being employed or was likely to be employed in a violation of this article; and
(C) No bona fide security interest or other valid lien in any conveyance shall be forfeited
under the provisions of this article, unless the state proves by a preponderance of the evidence that
the holder of such security interest or lien either knew, or had reason to know, that such conveyance
was being used or was likely to be used in a violation of this article.
(5) All books, records and materials, including microfilm, tapes and data which are used, or
have been used, or are intended for use with a gray gambling device;
(6) All moneys, negotiable instruments, securities or other things of value furnished or
intended to be furnished in violation of this article by any person in exchange for a gray gambling
device or in exchange for playing or operating a gray gambling device, all proceeds traceable to such
an exchange, and all moneys, negotiable instruments and securities used, or which have been used,
or which are intended to be used to facilitate any violation of this article:
Provided, That no property
may be forfeited under this subdivision, to the extent of the interest of an owner, by reason of any
act or omission established by that owner to have been committed or omitted without his knowledge
or consent; and
(7) All real property, including any right, title and interest in any lot or tract of land, and any
appurtenances or improvements, which are used, or have been used, or are intended to be used, in
any manner or part, to commit, or to facilitate the commission of a violation of this article punishable
by more than one year imprisonment:
Provided, That no property may be forfeited under this
subdivision, to the extent of an interest of an owner, by reason of any act or omission established by
that owner to have been committed or omitted without his knowledge or consent.
(b) The requirements of this section pertaining to the removal of seized property are not
mandatory in the case of real property and the appurtenances thereto.
(c) Property subject to forfeiture under this section may be seized by any person granted law-
enforcement powers (hereinafter referred to as the "appropriate person" in section 22B-1804).
§29-22B-1804. Procedure for seizure of forfeitable property.
(a) Seizure of property made subject to forfeiture by the provisions of sections 22B-1802 and
22B-1803 may be made upon process issued by any court of record having jurisdiction over the property.
(b) Notwithstanding the provisions of subsection (a) of this section, seizure of property
subject to forfeiture by the provisions of this article may be made without process if:
(1) The seizure is incident to a lawful arrest or pursuant to a search under a search warrant
or an inspection warrant;
(2) The property subject to seizure has been the subject of a prior judgment in favor of the
state in a forfeiture proceeding based upon this section; or
(3) The appropriate person has probable cause to believe that the property was used or
intended for use in violation of this article.
(c) In the event of seizure pursuant to subsection (b) of this section, forfeiture proceedings
shall be instituted within ninety days of the seizure thereof.
(d) Property taken or detained under this section shall not be subject to replevin, but is
deemed to be in the custody of the appropriate person, subject only to the orders and decrees of the
court having jurisdiction over the forfeiture proceedings. When property is seized under this article,
the appropriate person may:
(1) Place the property under seal;
(2) Remove the property to a place designated by him or her;
(3) Require the appropriate law-enforcement agency to take custody of the property and
remove it to an appropriate location for disposition in accordance with law; or
(4) In the case of seized moneys, securities or other negotiable instruments, place the assets
in any interest-bearing depository insured by an agency of the federal government.
The requirements of this subsection (d), pertaining to the removal of seized property, are not
mandatory in the case of real property and appurtenances thereto.
§29-22B-1805. Procedures for forfeiture.
(a) The following procedures for forfeiture shall be followed:
(1) Any proceeding wherein the state seeks forfeiture of property subject to forfeiture under
this section shall be a civil proceeding. A petition for forfeiture may be filed on behalf of the state
and any law-enforcement agency making a seizure under this article by the prosecuting attorney of
a county, or duly appointed special prosecutor;
(2) A petition for forfeiture may be filed and proceedings held thereon in the circuit court of
the county wherein the seizure was made or the circuit court of the county wherein any owner of the
property subject to forfeiture may reside;
(3) Any civil trial stemming from a petition for forfeiture brought under this part 18 at the
demand of either party shall be by jury;
(4) A petition for forfeiture of the seized property shall be filed within ninety days after the
seizure of the property in question. The petition shall be verified by oath or affirmation of a
law-enforcement officer representing the law-enforcement agency responsible for the seizure or the
prosecuting attorney and shall contain the following:
(A) A description of the property seized;
(B) A statement as to who is responsible for the seizure;
(C) A statement of the time and place of seizure;
(D) The identity of the owner or owners of the property, if known;
(E) The identity of the person or persons in possession of the property at the time seized, if
known;
(F) A statement of facts upon which probable cause for belief that the seized property is
subject to forfeiture pursuant to the provisions of this article is based;
(G) The identity of all persons or corporations having a perfected security interest or lien in
the subject property, as well as the identity of all persons or corporations known to the affiant who
may be holding a possessory or statutory lien against such property; and
(H) A prayer for an order directing forfeiture of the seized property to the state, and vesting
ownership of such property in the state.
(b) At the time of filing or as soon as practicable thereafter, a copy of the petition for
forfeiture shall be served upon the owner or owners of the seized property, as well as all holders of
a perfected security interest or lien or of a possessory or statutory lien in the same class, if known.
Should diligent efforts fail to disclose the lawful owner or owners of the seized property, a copy of
the petition for forfeiture shall be served upon any person who was in possession or alleged to be in
possession of the property at the time of seizure, where such person's identity is known. The above
service shall be made pursuant to the provisions of the West Virginia Rules of Civil Procedure. Any
copy of the petition for forfeiture so served shall include a notice substantially as follows:
"To any claimant to the within described property: You have the right to file an answer to
this petition setting forth your title in, and right to possession of, the property within thirty days from
the service hereof. If you fail to file an answer, a final order forfeiting the property to the state will
be entered, and such order is not subject to appeal."
If no owner or possessors, lienholders or holders of a security interest be found, then such
service may be made by Class II legal publication in accordance with the provisions of article 59-3-
1,
et seq., of this code, and the publication area shall be the county wherein such property was
located at the time of seizure and the county wherein the petition for forfeiture is filed.
(c) In addition to the requirements of subsection (b) of this section, the prosecuting attorney or law-enforcement officer upon whose oath or affirmation the petition for forfeiture is based, shall
be responsible for the publication of a further notice. Such further notice that a petition for forfeiture
has been filed shall be published by Class II legal advertisement in accordance with article 59-3-1,
et seq., of this code. The publication area shall be the county wherein the property was seized and
the county wherein the petition for forfeiture is filed. The notice shall advise any claimant to the
property of their right to file a claim on or before the date set forth in the notice, which date shall not
be less than thirty days from the date of the first publication. The notice shall specify that any claim
must clearly state the identity of the claimant and an address where legal process can be served upon
that person. In addition, such notice shall contain the following information:
(1) A description of the property seized;
(2) A statement as to who is responsible for the seizure;
(3) A statement of the time and place of seizure;
(4) The identity of the owner or owners of the property, if known;
(5) The identity of the person or persons in possession of the property at the time of seizure,
if known; and
(6) A statement that prayer for an order directing forfeiture of the seized property to the state,
and vesting ownership of such property in the state, shall be requested of the court.
(d) If no answer or claim is filed within thirty days of the date of service of the petition
pursuant to subsection (b) of this section, or within thirty days of the first publication pursuant to
subsection (b) of this section, the court shall enter an order forfeiting the seized property to the state.
If any claim to the seized property is timely filed, a time and place shall be set for a hearing upon
such claim. The claimant or claimants shall be given notice of such hearing not less than ten days
prior to the date set for the hearing.
(e) At the hearing upon the claim or claims, the state shall have the burden of proving by a
preponderance of the evidence that the seized property is subject to forfeiture pursuant to the
provisions of this part 18.
(f) Any order forfeiting property to the state and entered pursuant to this section perfects the
state's right, title and interest in the forfeited property and relates back to the date of seizure:
Provided, That in any proceeding under this article the circuit court shall in its final order make
specific findings with respect to whether or not probable cause to seize such property existed at the
time of such seizure.
(g) During the pendency of a forfeiture proceeding, it is unlawful for any property owner or
holder of a bona fide security interest or other valid lien-holder to transfer or attempt to transfer any
ownership interest or security interest in seized property with the intent to defeat the purpose of this article, and the court wherein the petition for forfeiture is filed may enjoin a property owner or holder
of a security interest or other lien-holder from making such a transfer should one come to its
attention. Any such transfer, that is made in violation of the provisions of this subsection, shall have
no effect upon an order of the court forfeiting seized property to the state if a notice of lis pendens
is filed prior to the recording of the instrument of transfer.
(h) The court may void any transfer of property made before or after a forfeiture proceeding
has been commenced, which is subject to forfeiture, if the transfer was not to a bona fide purchaser
without notice for value.
(i) An appeal of a decision of the circuit court concerning a forfeiture proceeding brought
pursuant to this part 18 must be filed within one hundred twenty days of the date of entry of the final
appealable order. The appellant shall be required to give notice of intent to appeal within thirty days
of the entry of such appealable order.
§29-22B-1806. Disposition of forfeited moneys, securities or other negotiable instruments.
(a) Whenever moneys, securities or other negotiable instruments are forfeited under the
provisions of this part 18, such proceeds shall be distributed as follows:
(1) Ten percent of the proceeds shall be tendered to the office of the prosecuting attorney
which initiated the forfeiture proceeding; and
(2) The balance shall be deposited in a special law-enforcement investigation fund. The fund
may be placed in any interest-bearing depository insured by an agency of the federal government.
The fund shall be administered by the chief of the law-enforcement agency that seized the forfeited
property.
(b) No funds shall be expended from the special law-enforcement investigation fund except
as follows:
(1) In the case of the funds belonging to the West Virginia state police, the funds shall only
be expended at the direction of the superintendent and in accordance with the provisions of section
5A-2-15 and subsection 12-2-2(j) of this code;
(2) In the case of funds belonging to the office of either the sheriff or prosecuting attorney
of any county in which the special fund has been created, the funds therein may only be expended
in the manner provided in sections 7-5-4 and 5 of this code; and
(3) In the case of funds belonging to the police department of any municipality in which the
special fund has been created, the funds therein may only be expended in the manner provided in
section 8-13-22 of this code.
§29-22B-1807. Disposition of other forfeited property; distribution of proceeds.
(a) When property other than that referred to in section 22B-1806 of this part is forfeited under this section, the circuit court ordering the forfeiture, upon application by the prosecuting
attorney or the chief of the law-enforcement agency that seized said forfeited property, may direct
that:
(1) Title to the forfeited property be vested in the law-enforcement agency so petitioning; or
(2) The law-enforcement agency responsible for the seizure retain the property for official
use; or
(3) The forfeited property shall be offered at public auction to the highest bidder for cash.
Notice of such public auction shall be published as a Class III legal advertisement in accordance with
article 59-3-1,
et seq., of this code. The publication area shall be the county where the public auction
will be held.
(b) When a law-enforcement agency receives property pursuant to this section, the court may,
upon request of the prosecuting attorney initiating the forfeiture proceeding, require the
law-enforcement agency to pay unto the office of said prosecuting attorney a sum not to exceed ten
percent of the value of the property received to compensate said office for actual costs and expenses
incurred.
(c) The proceeds of every public sale conducted pursuant to this section shall be paid and
applied as follows: First, to the balance due on any security interest preserved by the court; second,
to the costs incurred in the storage, maintenance and security of the property; third, to the costs
incurred in selling the property.
(d) Any proceeds of a public sale remaining after distribution pursuant to this section shall
be distributed as follows:
(1) Ten percent of such proceeds shall be tendered to the office of the prosecuting attorney
who initiated the forfeiture proceeding; and
(2) The balance shall be deposited in a special law-enforcement investigation fund. Such
fund shall be administered by the chief of the law-enforcement agency that seized the forfeited
property sold and shall take the form of an interest-bearing account with any interest earned to be
compounded to the fund. Any funds deposited in the special law-enforcement investigative fund
pursuant to this article shall be expended only to defray the costs of protracted or complex
investigations, to provide additional technical equipment or expertise, to provide matching funds to
obtain federal grants or for such other law-enforcement purposes as the chief of the law-enforcement
agency may deem appropriate; however, these funds may not be utilized for regular operating needs.
(e) If more than one law-enforcement agency was substantially involved in effecting the
seizure and forfeiture of property, the court wherein the petition for forfeiture was filed shall equitably distribute the forfeited property among the law-enforcement agencies. In the event of a
public sale of such property pursuant to subsection (a) of this section, the court shall equitably
distribute any proceeds remaining after distribution pursuant to subsection (c) and subdivision (1),
subsection (d) of this section, among such law-enforcement agencies for deposit into their individual
special law-enforcement investigative fund. Equitable distribution shall be based upon the overall
contribution of the individual law-enforcement agency to the investigation which led to the seizure.
(f) Upon the sale of any forfeited property for which title or registration is required by law,
the state shall issue a title or registration certificate to any bona fide purchaser at a public sale of the
property conducted pursuant to this section. Upon the request of the law-enforcement agency
receiving, pursuant to the order of the court, or electing to retain, pursuant to this section, any
forfeited property for which title or registration is required by law, the state shall issue a title or
registration certificate to the appropriate governmental body.
(g) Any funds expended pursuant to the provisions of this section, shall only be expended
in the manner provided in subsection 60A-7-705(b), of this code.
(h) Every prosecuting attorney or law-enforcement agency receiving forfeited property or
proceeds from the sale of forfeited property pursuant to this part 18 shall submit an annual report to
the body which has budgetary authority over such agency. Such report shall specify the type and
approximate value of all forfeited property and the amount of proceeds from the sale of forfeited
property received in the preceding year. No county or municipality may use anticipated receipts of
forfeited property in their budgetary process.
(i) In lieu of the sale of any forfeited property subject to a bona fide security interest
preserved by an order of the court, the law-enforcement agency receiving the forfeited property may
pay the balance due on any security interest preserved by the court from funds budgeted to the office
or department or from the special fund and retain possession of the forfeited property for official use
pursuant to this section.
(j) In every case where property is forfeited, disposition of the forfeited property, in
accordance with this part 18, shall be made within six months of the date upon which the court of
jurisdiction orders forfeiture. Should the office or agency receiving the property fail either to place
the property in official use or dispose of the property in accordance with law, the court of jurisdiction
shall cause disposition of the property to be made with any proceeds therefrom to be awarded to the
state.
(k) No disposition shall occur until all applicable periods for filing a notice of intent to appeal
has expired and no party in interest shall have filed such notice. The filing of the notice of intent to
appeal shall stay any such disposition until the appeal has been finally adjudicated or until the appeal period of one hundred eighty days has expired without an appeal having actually been taken or filed,
unless a valid extension of the appeal has been granted by the circuit court under the provisions of
section 58-4-7 of this code.
(l) The special law-enforcement investigative funds of each law-enforcement agency may
be placed in an interest-bearing depository insured by the federal government.
Part 19. Miscellaneous provisions.
§29-22B-1901. Effect of this article on certain taxes.
(a) Notwithstanding any provision of this code to the contrary, effective the first day of July,
2001, persons who hold a current operator's license or a current limited video lottery retailer's
license issued under this article shall be exempt from paying the taxes imposed by articles 11-15-1,
et seq., and 11-15A-1,
et seq., of this code on their purchases of video lottery terminals and video
lottery games.
(b) Notwithstanding any provision of this code to the contrary, effective the first day of July,
2001, the consideration paid by a patron of a restricted access adult-only facility to play of video
lottery games shall be exempt from the tax imposed by article 11-15-1,
et seq., of this code.
(c) Notwithstanding the provisions of section 8-13-4 of this code to the contrary, effective
the first day of July, 2001, municipalities may not impose the license fees imposed by this article on
manufacturers, operators, limited video lottery retailers and service technicians. Municipalities may
continue to impose any other license fees they are allowed to impose under this code.
(d) Notwithstanding any provision of this code to the contrary, effective the first day of July,
2001, municipalities may not impose the municipal business and occupation taxes imposed pursuant
to section 8-13-5 of this code, or an amusement tax imposed pursuant to section 8-13-6 of this code
on the income of an permittee of video lottery terminals from income derived directly from activities
conducted pursuant to the provisions of this article.
(e) Notwithstanding any provision of this code to the contrary, effective the first day of July,
2001, municipalities may not impose the municipal business and occupation taxes imposed pursuant
to section 8-13-5 of this code on payments a limited video lottery retailer receives from an operator
of video lottery terminals for activities conducted pursuant to the provisions of this article.
§29-22B-1902. Preemption of state laws or local regulation.
(a) No state or local law or regulation providing any penalty, disability, restriction, regulation
or prohibition for the manufacture, transportation, storage, distribution, advertising, possession or
sale of any lottery video lottery terminal, games or materials or for the operation of any lottery shall
apply to operations by the lottery commission or persons licensed pursuant to this article or
operations or activities that are authorized in this article.
(b) The provisions of this article preempt all regulations, rules, ordinances and laws of any
county or municipality in conflict herewith:
Provided, That nothing herein shall invalidate any
zoning law, or Sunday closing law under article 61-10-1,
et seq., of this code.
(c) Nothing in this article shall be deemed to permit the operation of any lottery otherwise
prohibited by the laws of this state, not owned and operated by this state and permitted by this
article.
§29-22B-1903. Timing of implementation.
The Legislature finds and declares that the success of this state's implementation of video
lottery operations under this article requires that the operations be phased in over a manageable
transition period designed to allow careful regulation and control of the implementation of
operations under this article and also to allow persons possessing devices that are declared by this
article to be contraband gambling devices a reasonable opportunity to remove any existing devices
from this state.