Introduced Version
Senate Bill 548 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 548
(By Senator McKenzie)
____________
[Introduced February 17, 2004; referred to the Committee on the
Judiciary/ and then to the Committee on Finance.]
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A BILL to amend the code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §29-25A-1, §29-25A-2,
§29-25A-3, §29-25A-4, §29-25A-5, §29-25A-6, §29-25A-7,
§29-25A-8, §29-25A-9, §29-25A-10, §29-25A-11, §29-25A-12,
§29-25A-13, §29-25A-14, §29-25A-15, §29-25A-16, §29-25A-17,
§29-25A-18, §29-25A-19, §29-25A-20, §29-25A-21, §29-25A-22,
§29-25A-23, §29-25A-24, §29-25A-25, §29-25A-26 and §29-25A-27,
all
relating generally to authorizing racetrack table gaming
facilities at licensed horse and dog racetracks and providing
generally therefor; providing for legislative findings and
intent; requiring local option elections to approve licensure
of racetrack table gaming facilities; defining certain terms;
duties and powers of the state lottery commission; appointment
of lottery commission staff; adoption and proposal of rules;
contract agreements and cost for law-enforcement services; providing generally for licenses to engage in activities
related to operation of racetrack table gaming facilities;
severability of article; qualifications for applicant for
license to operate a racetrack table gaming facility;
conditions of license; license application requirements;
information required of certain corporations; racetrack table
gaming facility qualifications; application, license and
investigative fees; requirement for surety bond; authorization
of license and prohibiting transfer, assignment, sale or
pledge as collateral; audits and reports of licensee;
requirements for license for supplier of racetrack table
gaming facility; requirements for license for employee of
operator of racetrack table gaming facility; prohibition of
false statements on application for license; grounds for
denial, revocation or suspension of license; reprimand of
licensee; information included on license; display and
availability of license; notice of change of address;
expiration and renewal of licenses; renewal fees; hearing
procedures; licensee consent to warrantless searches of person
and property; patron consent to presence of law-enforcement
officers; permitting racetrack table gaming operators to set
wagers; transfers of gross terminal income to state racetrack
table gaming fund; imposing privilege tax on adjusted gross
receipts of racetrack table gaming facility; providing generally for filing and payment of taxes; creating state
racetrack table gaming fund; distribution of amounts in fund;
prohibited wagers and other activities; prohibiting wagers by
certain persons; establishing criminal offenses and penalties;
forfeiture of certain property; and providing civil penalties.
Be it enacted by the Legislature of West Virginia:
That the code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §29-25A-1, §29-25A-2,
§29-25A-3, §29-25A-4, §29-25A-5, §29-25A-6, §29-25A-7, §29-25A-8,
§29-25A-9, §29-25A-10, §29-25A-11, §29-25A-12, §29-25A-13,
§29-25A-14, §29-25A-15, §29-25A-16, §29-25A-17, §29-25A-18,
§29-25A-19, §29-25A-20, §29-25A-21, §29-25A-22, §29-25A-23,
§29-25A-24, §29-25A-25, §29-25A-26
and §29-25A-27,
all to read as
follows:
ARTICLE 25A. RACETRACK TABLE GAMING ACT.
§29-25A-1. Short title.
This article shall be known as and may be cited as the
"Racetrack Table Gaming Act."
§29-25A-2. Authorization of racetrack table gaming facilities;
findings; intent.
(a) Operation of authorized games of chance. --
Notwithstanding any provision of law to the contrary, the operation
of those authorized games of chance permitted by this article and
the related operation of racetrack table gaming facilities and ancillary activities is not unlawful when conducted under the terms
specified in this article.
(b) Legislative findings. -- The Legislature finds and
declares that the tourism industry plays a critical role in the
economy of this state and that a substantial state interest exists
in protecting that industry. It further finds and declares that
the authorization of the operation of racetrack table gaming
facilities in this state as provided in this article will protect
and preserve existing video lottery revenues of this state, and
will also serve to protect and enhance the tourism industry, and
indirectly benefit other segments of the economy of this state.
The Legislature finds and declares that the operation of the
authorized games of chance permitted by this article constitutes
the operation of lottery games owned, controlled, operated, and
regulated by the state of West Virginia within the purview of
section thirty-six, article VI of the constitution of this state.
§29-25A-3. Definitions.
(a) "Adjusted gross receipts" means the gross receipts of a
racetrack table gaming facility from authorized games of chance
less winnings paid to wagerers in the games.
(b) "Applicant" means any person or entity applying for a
license.
(c) "Authorized game of chance" includes baccarat, twenty-one
or blackjack, poker, craps, roulette, wheel of fortune, and any
other Monte Carlo style table game expressly authorized by rule of the commission, but expressly excludes video lottery, punchboards,
faro, keno, numbers tickets, push cards, jar tickets, pull tabs or
similar games.
(d) "Controlling interest" means:
(1) For a partnership, an interest as a general or limited
partner holding more than fifty percent interest in the entity;
(2) For a corporation, an interest of more than fifty percent
of the stock in the corporation; and
(3) For any other entity, an ownership interest of more than
fifty percent in the entity.
(e) "Commission" means the state lottery commission created in
section four, article twenty-two of this chapter.
(f) "Controlling person" means, with respect to another
person, any person directly or indirectly owning or holding a
controlling interest in that other person.
(g) "Director" means the director of the state lottery
commission.
(h) "Gaming devices and supplies" means gaming tables for all
authorized games of chance, roulette wheels, wheels of fortune,
cards, dice, chips, tokens, markers or any other mechanical,
electronic or other device, mechanism or equipment or related
supplies utilized in the operation of an authorized game of chance.
(i) "Gaming licensee" means the licensed operator of a
racetrack table gaming facility.
(j) "Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens or electronic cards by patrons of
a racetrack table gaming facility.
(k) "License" means a license issued by the commission,
including:
(1) A license to operate a racetrack table gaming facility;
(2) A license to supply gaming devices and supplies to a
racetrack table gaming facility; or
(3) A license to be employed in connection with the operation
of a racetrack table gaming facility.
(l) "Licensee" means a gaming licensee, a licensed racetrack
table gaming facility supplier or a licensed racetrack table gaming
facility employee.
(m) "Licensed racetrack" means a racetrack that holds a valid
license to operate video lottery terminals pursuant to article
twenty-two-a of this chapter.
(n) "Licensed racetrack table gaming facility employee" means
any individual licensed to be employed by a gaming licensee in
connection with the operation of a racetrack table gaming facility.
(o) "Licensed racetrack table gaming facility supplier" means
a person who is licensed by the commission to engage in the
business of supplying gaming devices and gaming supplies to a
racetrack table gaming facility.
(p) "Person" means any natural person, corporation,
association, partnership, limited partnership, limited liability company or other entity, regardless of its form, structure or
nature.
(q) "Racetrack table gaming facility" means a designated area
on the premises of a licensed racetrack in which authorized games
of chance are conducted by a gaming licensee.
(r) "State racetrack table gaming fund" means the special fund
in the state treasury created in section twenty-one of this
article.
§29-25A-4. Commission duties and powers.
(a) Duties. -- In addition to the duties set forth elsewhere
in this article, the commission shall:
(1) Establish standards for gaming devices and supplies,
including electronic or mechanical gaming devices;
(2) Approve rules for all authorized games of chance proposed
to be operated by a gaming licensee;
(3) Establish standards governing gaming facilities generally,
including the maintenance of financial books and records;
(4) Provide staff to supervise, inspect and monitor the
operation of any racetrack table gaming facility, including
inspection of gaming devices and supplies used in the operation to
assure continuous compliance with all rules of the commission and
provisions of this article;
(5) Establish minimum levels of insurance to be maintained
with respect to a racetrack table gaming facility;
(6) Investigate applicants to determine eligibility for any
license;
(7) Designate appropriate classifications of personnel to be
employed in the operation of a racetrack table gaming facility and
establish appropriate licensing standards within the
classifications;
(8) Issue all licenses;
(9) Charge and collect the taxes and fees authorized, required
or specified in this article and receive, accept and pay all taxes
and fees collected under this article into the state racetrack
table gaming fund;
(10) Maintain a record of all licenses issued;
(11) Keep a public record of all commission actions and
proceedings; and
(12) File a written report to the governor, the president of
the Senate and the speaker of the House of Delegates on or before
the thirtieth day of January of each year and any additional
reports as the governor or Legislature may request.
(b) Powers. -- In addition to the powers set forth elsewhere
in this article, the commission has the following powers:
(1) To sue to enforce any provision of this article by
injunction;
(2) To hold hearings, administer oaths and issue subpoenas for
the attendance of a witness to testify and to produce evidence;
(3) To enter a racetrack table gaming facility at any time and
without notice to ensure strict compliance with the rules of the
commission;
(4) To bar, for cause, any person from entering or
participating in any capacity in the operation of a racetrack table
gaming facility; and
(5) To exercise any other powers that may be necessary to
effectuate the provisions of this article
. §29-25A-5. Appointment of
commission staff; conditions of employment.
The director, pursuant to the provisions of section six,
article twenty-two of this chapter, with the approval of the
commission, may appoint any professional, clerical, technical and
administrative personnel, who shall be state employees hired in
accordance with article six of this chapter, which may be necessary
to carry out the provisions of this article. Prior to his or her
appointment, each staff person shall undergo a thorough background
investigation, including fingerprinting and a check of criminal
records. No employee may directly or indirectly hold any financial
interest in any entity licensed under this article.
§29-25A-6. Rules.
The commission shall propose for promulgation legislative
rules in accordance with the provisions of article three, chapter
twenty-nine-a of this code as are necessary to provide for
implementation and enforcement of the provisions of this article.
Any rules proposed by the commission before the first day of September, two thousand four, may be by emergency rule.
§29-25A-7. Law enforcement.
(a) Generally. -- Notwithstanding any provision of this code
to the contrary, the director may by contract or cooperative
agreements with state, county or municipal law-enforcement agencies
operating in the county in which the racetrack table gaming
facility is located arrange for those law-enforcement services that
are necessary to enforce the provisions of this article.
(b) Costs. -- The actual cost of services provided by the
state police or municipal law-enforcement agencies in connection
with enforcement of the provisions of this article shall be paid
from the state racetrack table gaming fund, and shall include all
costs of required training and equipment as well as salary,
benefits and other direct costs of additional required personnel.
The costs of services related to a racetrack table gaming
facility provided by law-enforcement officers of the county in
which the racetrack table gaming facility is located shall be paid
from that portion of the state racetrack table gaming fund
allocated to that county. The costs shall include all costs of
required training and equipment as well as salary, benefits and
other direct costs of additional required personnel.
§29-25A-8. Local option.
(a) No racetrack table gaming facility may be licensed to
operate in a county until a local option election is held on the question of whether a racetrack table gaming facility may be
operated within the county and the voters approve the operation of
a racetrack table gaming facility in the county. The election
shall be determined by a vote of the resident voters of the county
in which the facility is proposed to be located.
(b) The county commission shall place the question on the
ballot upon the receipt of notice by a licensed racetrack filed
with the county commission in the county in which the racetrack
table gaming facility is to be located requesting the question be
placed on the ballot.
(c) The county commission of the county in which the proposed
facility is located shall give notice to the public of the election
by publication of the notice as a Class II-0 legal advertisement in
compliance with the provisions of article three, chapter fifty-nine
of this code, and the publication area for the publication shall be
the county in which the election is to be held. The date of the
last publication of the notice shall fall on a date within the
period of the fourteen consecutive days next preceding the
election.
On the local option election ballot shall be printed the
following:
Shall a West Virginia lottery commission licensed racetrack
table gaming facility be permitted within an area at the [name of
licensed racetrack]?
[ ] Yes [ ] No
(Place a cross mark in the square opposite your choice.)
Any local option election to approve or disapprove of the
proposed authorization of a racetrack table gaming facility within
a county shall be in accordance with procedures adopted by the
commission. The local option election shall be held in conjunction
with the next primary or general election scheduled more than
ninety days following receipt by the county commission of the
notice required by this section, or at a called special election:
Provided, That upon request of the licensed racetrack that a
special election be called, the county commission shall order a
special election on the question within six months of the request:
Provided, however, That the county commission may require the
licensed racetrack to pay the entire cost incurred by the county to
hold the special election. Approval shall be by a majority of the
voters casting votes on the question of approval or disapproval of
racetrack table gaming facility operations at the election.
If a majority votes against allowing a racetrack table gaming
facility, no election on the issue shall be held for a period of
one hundred four weeks. A local option election may thereafter be
held in the manner herein provided: Provided, That the issue may
not be placed on the ballot until all statutory notice requirements
have been met.
(d) No local law or regulation providing any penalty,
disability, restriction, regulation or prohibition for operating a racetrack table gaming facility or supplying a racetrack table
gaming facility may be enacted, and the provisions of this article
preempt all regulations, rules, ordinances and laws of any county
or municipality in conflict with this article.
(e) Except as specifically provided in this article, no other
fees or taxes may be imposed by a local governing body.
§29-25A-9. Licenses required.
(a) No person may engage in any activity in connection with a
racetrack table gaming facility in this state for which a license
is required by subsection (b) of this section unless that person
has been licensed by the commission in accordance with this
article.
(b) Licenses are required for the following purposes:
(1) For any person engaging in the business of operating a
racetrack table gaming facility in the state;
(2) For any person engaging in the business of supplying a
racetrack table gaming facility with gaming devices, supplies or
services if the racetrack table gaming facility expends more than
fifty thousand dollars annually with that person; and
(3) For any individual employed by a gaming licensee in
connection with the operation of a racetrack table gaming facility
in the state.
(c) Any license required under this article is in addition to
all other licenses or permits otherwise required by law.
§29-25A-10. License to operate a racetrack table gaming facility.
(a) Applicant qualifications. -- An applicant for a license to
operate a racetrack table gaming facility shall be the owner or be
wholly owned by the owner of the licensed racetrack in which the
racetrack table gaming facility is to be located, and the licensed
racetrack shall be located within the jurisdiction of a county
approving the operation of a racetrack table gaming facility in
accordance with section seven of this article. An applicant shall
meet the qualifications and requirements set forth in this article
and rules adopted by the commission. In determining whether to
grant a license to operate a racetrack table gaming facility to an
applicant, the commission shall consider:
(1) The character, reputation, experience and financial
integrity of the applicant and any controlling person of the
applicant;
(2) Whether the applicant has adequate capital to construct
and maintain the proposed racetrack table gaming facility for the
duration of a license;
(3) The extent to which the applicant meets standards
contained in rules adopted by the commission relating to public
safety or other standards; and
(4) The plan submitted by the applicant regarding employment
levels and the extent to which the submitted plan demonstrates an
ability on the part of the applicant to create at least two hundred fifty full-time equivalent jobs with a salary and benefit package
commensurate with existing employees at the licensed racetrack.
(b) Conditions attached to license. -- A license to operate a
racetrack table gaming facility may only be granted to an applicant
upon the express condition that:
(1) The licensee may not enter into any management service
contract, understanding or arrangement of any kind which would act
to permit any person other than the licensee to operate a licensed
racetrack table gaming facility unless the management service
contract, understanding or arrangement is in writing and has been
approved by the commission. The commission shall condition its
approval upon the successful completion of a thorough background
investigation at the expense of the licensee;
(2) The licensee may not in any manner permit a person other
than the licensee to have a share, percentage or proportion of any
profits generated from the operation of a racetrack table gaming
facility;
(3) The licensee shall not conduct any advertising and
promotional activities related to the racetrack table gaming
facility without the prior written approval of the director of the
lottery commission; and
(4) The licensee shall permit authorized games of chance to be
played only during those hours established and approved by the
commission.
(c) License application requirements. -- An applicant for a
license to operate a racetrack table gaming facility shall:
(1) Submit an application to the commission on a form
prescribed by the commission, which shall include:
(A) Information concerning the applicant and of any
controlling person of the applicant sufficient to serve as a basis
for a thorough background check;
(B) Subject to the provisions of subsection (e) of this
section with respect to publicly-traded corporations, the identity
of all stockholders or other persons having a financial interest in
either the applicant or any controlling person of the applicant and
the identity of each director or executive officer of the applicant
and of any controlling person of the applicant;
(C) The identity of the licensed racetrack at which the
racetrack table gaming facility is to be located, including
identification of the county in which the licensed racetrack is
located; and
(D) Any other information designated by the commission as
appropriate to assist it in determining whether a license should be
issued;
(2) Pay to the commission a nonrefundable application fee for
deposit into the state racetrack table gaming fund in the amount of
twenty-five thousand dollars; and
(3) Pay to the commission an investigative fee for deposit in the state racetrack table gaming fund in the amount of twenty
thousand dollars.
(d) Publicly-traded corporations. -- In the event that an
applicant or any controlling person of an applicant is a
publicly-traded corporation, then information otherwise required to
be furnished by an applicant with respect to stockholders,
directors and executive officers of the publicly-traded corporation
shall be limited to information concerning only those executive
officers of the publicly-traded corporation whose ongoing and
regular responsibilities relate or are expected to relate directly
to the operation or oversight of the racetrack table gaming
facility. "Publicly-traded corporation" as used in this subsection
means any corporation or other legal entity except a natural person
which has one or more classes of securities registered pursuant to
section twelve of the Securities Exchange Act of 1934, as amended,
or is an issuer subject to section fifteen-d of that act.
(e) Racetrack table gaming facility qualifications. -- An
applicant for a license to operate a racetrack table gaming
facility shall demonstrate that the racetrack table gaming facility
will: (1) Be accessible to disabled individuals; (2) be licensed
in accordance with all other applicable federal, state and local
laws; and (3) meet any other qualifications specified by rules
adopted by the commission.
(f) Investigative fee. -- The investigative fee paid by an applicant at the time of submitting an application shall be applied
to the cost of any investigation relating to the applicant required
under this article.
(1) If the cost of the investigation is greater than twenty
thousand dollars, the investigative agency shall show cause for the
additional cost. The applicant shall pay the additional costs to
the extent approved by the commission, but not to exceed a total
investigative fee of forty thousand dollars;
(2) If the cost of the investigation is less than the
aggregate investigative fee paid by an applicant, the commission
shall refund the difference.
(g) Surety bond requirement. -- The licensed operator of a
racetrack table gaming facility shall execute a surety bond to be
given to the state to guarantee the licensee faithfully makes the
payments, keeps books and records, makes reports and conducts
gaming in the licensee's racetrack table gaming facility in
accordance with the provisions of this article and rules
promulgated by the commission. The surety bond shall be:
(1) In the amount of two million dollars;
(2) In a form approved by the commission; and
(3) With a surety approved by the commission.
The bond shall remain in effect during the term of the license
and may not be canceled by a surety on less than thirty days notice
in writing to the commission. The total and aggregate liability of the surety on the bond is limited to the amount specified in the
bond.
(h) Authorization of license. -- A license to operate a
racetrack table gaming facility authorizes the licensee to engage
in the business of operating a racetrack table gaming facility
while the license is effective. A license to operate a racetrack
table gaming facility is not transferable or assignable and cannot
be sold or pledged as collateral.
(i) Audits. -- A licensed racetrack table gaming facility
operator shall submit to the commission an annual audit, by a
certified public accountant of the financial transactions and
condition of the licensee's total operations. The audit shall be
in accordance with generally accepted auditing principles.
(j) Annual license maintenance fee. -- The licensed racetrack
table gaming facility operator shall pay to the commission an
annual license maintenance fee of five thousand dollars.
(k) The licensed racetrack table gaming facility operator
shall provide to the commission, at no cost to the commission,
suitable office space at the racetrack table gaming facility to
perform the duties required of it by the provisions of this
article.
§29-25A-11. Reports by licensee.
(a) A gaming licensee shall file with the commission an annual
balance sheet and profit and loss statement pertaining to the licensee's operation of a racetrack table gaming facility in this
state. A gaming licensee also shall file with the commission an
annual statement identifying each controlling person of the
licensee and all stockholders, partners, officers or directors for
the licensee and any controlling person: Provided, That if a
gaming licensee or controlling person is a publicly-traded
corporation, then as to the publicly-traded corporation the annual
report is required to identify only executive officers whose
ongoing regular duties relate directly to the operation of the
racetrack table gaming facility. A gaming licensee shall file
further reports with the commission as the commission may require
by rule.
(b) A gaming licensee shall maintain daily records showing the
following:
(1) The total number of patrons of the racetrack table gaming
facility; and
(2) The gross receipts and the adjusted gross receipts.
§29-25A-12. License to supply racetrack table gaming facility.
(a) Licenses. -- The commission may issue a license to each
applicant for a license to supply a racetrack table gaming facility
with gaming devices, gaming supplies or services who meets the
requirements of this section.
(b) License qualifications. -- To qualify for a license, an
applicant shall meet the requirements of this section. Each applicant who is an individual and each individual who is a
controlling person of an applicant that is not an individual shall
be of good moral character and reputation, and shall have the
necessary experience and financial ability to successfully carry
out the functions of a racetrack table gaming facility supplier.
The commission may adopt rules establishing additional requirements
for a racetrack table gaming facility supplier.
(c) Supplier specifications. -- An applicant for a license to
supply gaming devices, equipment and supplies to a racetrack table
gaming facility shall demonstrate that the gaming devices,
equipment and supplies that the applicant plans to sell or lease to
the licensed operator of the racetrack table gaming facility,
conform or will conform to standards established by rules of the
commission and applicable state law.
(d) License application requirements. -- An applicant for a
license shall:
(1) Submit an application to the commission on the form that
the commission requires;
(2) Pay to the commission a nonrefundable application fee for
deposit into the state racetrack table gaming fund in the amount of
five thousand dollars; and
(3) Pay to the commission an investigative fee for deposit
into the state racetrack table gaming fund in the amount of ten
thousand dollars, or a lesser amount as the commission upon application may conditionally approve in a particular case.
(e) Investigative fee. -- The investigative fee paid by an
applicant for a license to supply a racetrack table gaming facility
shall be applied to the cost of any investigation of the applicant
required under this article:
(1) If the costs of the investigation of an applicant are
greater than ten thousand dollars, or the lesser investigative fee
as may have been conditionally approved by the commission, the
investigative agency must show cause for the additional cost. If
the commission approves, the applicant shall pay the additional
costs as required by the commission, but not to exceed a total
investigative fee of fifty thousand dollars.
(2) If the costs of the investigation of an applicant are less
than the aggregate investigative fee paid to the commission, the
commission shall refund the difference.
(f) Authorization of licensee. -- A license to supply a
racetrack table gaming facility authorizes the licensee to engage
in the business of selling gaming devices and supplies to a
racetrack table gaming facility while the license is effective.
(g) Inventory. -- A licensed racetrack table gaming facility
supplier shall submit to the commission a list of all equipment,
gaming devices and supplies sold or delivered to a racetrack table
gaming facility in this state when required by the commission.
(h) Annual license maintenance fee. -- A licensed racetrack table gaming facility supplier shall pay to the commission an
annual license maintenance fee of five thousand dollars.
§29-25A-13. License to be employed by operator of racetrack table
gaming facility.
(a) Licenses. -- The commission shall issue a license to each
applicant for a license to be employed in the operation of a
racetrack table gaming facility who meets the requirements of this
section.
(b) License qualifications. -- To qualify for a license to be
employed in a racetrack table gaming facility, the applicant shall
be an individual of good moral character and reputation and have
been offered employment by the racetrack table gaming facility
contingent upon licensure pursuant to the provisions of this
section. The commission by rule may specify additional
requirements to be met by applicants based on the specific job
classifications in which the applicant is to be employed.
(c) License application requirements. -- An applicant for a
license to be employed in the operation of a racetrack table gaming
facility shall:
(1) Submit an application to the commission on the form that
the commission requires, including adequate information to serve as
a basis for a thorough background check;
(2) Pay to the commission a nonrefundable application fee for
deposit into the state racetrack table gaming fund in the amount of
three hundred dollars, which fee may be paid on behalf of the applicant by the employer; and
(3) Pay to the commission a nonrefundable investigative fee
for deposit into the state racetrack table gaming fund in an amount
to be fixed by the commission by rule, which fee may be paid on
behalf of the applicant by the employer.
(d) Authorization of licensee. -- A license to be employed by
a racetrack table gaming facility authorizes the licensee to be
employed in the capacity designated by the commission with respect
to the license while the license is effective.
(e) Annual license maintenance fee. -- Each licensed employee
shall pay to the commission an annual license maintenance fee set
by the commission. The maintenance fee may vary based on the
capacity designated with respect to the licensee but in no event to
exceed three hundred dollars. The fee may be paid on behalf of the
licensed employee by the employer.
§29-25A-14. False statements on applications; other license
requirements and prohibitions.
(a) Any person who knowingly makes a false statement on an
application is guilty of a misdemeanor and, upon conviction
thereof, shall be fined not less than one hundred nor more than
five hundred dollars, or confined in jail not less than six months,
or both fined and confined.
(b) The commission may not grant a license pursuant to the
provisions of this article if there is substantial evidence that
the applicant:
(1) Has knowingly made a false statement of a material fact to
the commission;
(2) Has been suspended from operating a gambling game, gaming
device or gambling operation in another jurisdiction by a board or
other governmental authority of that jurisdiction having
responsibility for the regulation of gambling or gaming activities;
(3) Has been convicted of a felony, an offense of moral
turpitude, a gambling offense, a theft or fraud offense, or has
otherwise demonstrated, either by a police record or other
satisfactory evidence, a lack of respect for law and order;
(4) Has failed to meet any monetary obligation in connection
with a racetrack table gaming facility or any other form of gaming;
or
(5) In the case of an applicant for a license to operate a
racetrack table gaming facility or to supply a racetrack table
gaming facility:
(A) Has not demonstrated financial responsibility sufficient
to meet adequately the requirements of the enterprise proposed; or
(B) Is not the true owner of the enterprise or is not the sole
owner and has not disclosed the existence or identity of other
persons who have an ownership interest in such enterprise.
(c) In addition to any other grounds specified in this
article, and subject to the hearing provisions of section seventeen
of this article, in the case of a license to operate a racetrack table gaming facility the commission may deny a license to any
applicant, reprimand any licensee, or suspend or revoke a license
if the applicant or licensee or any controlling person of the
applicant or licensee knowingly employs an individual in a senior
management position who has been convicted of a felony under the
laws of this state, another state, a territory of the United States
or the United States or employs any individual in a senior
management position who has had a license relating to the operation
of a racetrack table gaming facility revoked by this state or any
other state.
(d) Character references may be required of persons licensed,
but the character references may not be obtained from persons in
the same or similar occupations or professions in other states.
§29-25A-15. Licenses; availability for inspection; change of
address.
(a) The commission shall include on each license that the
commission issues:
(1)The type of license;
(2) The identity and address of the licensee;
(3) The effective date of the license; and
(4)Any other information the commission considers
appropriate.
(b) Each gaming licensee or licensed supplier of a racetrack
table gaming facility shall display the license conspicuously in its place of business or have the license readily available for
inspection at the request of any agent of the commission or of the
state police. Each holder of a license to be employed by a
racetrack table gaming facility shall carry the license on his or
her person at all times when present in a racetrack table gaming
facility and, if required by rules adopted by the commission with
respect to the particular capacity in which the licensee is
employed, have some indicia of licensure prominently displayed on
his or her person.
(c) Each licensee shall give the commission written notice of
any change of address and any other relevant information necessary
for the maintenance of accurate records by the commission.
§29-25A-16. Expiration date and renewal of gaming license.
(a) A license expires on the fifth anniversary of its
effective date, unless the license is renewed for additional
five-year terms as provided in this section.
(b) At least two months before a license expires, the
commission shall send to the licensee, by mail to the last known
address, a renewal application form and notice that states:
(1) The date on which the current license expires;
(2) The date by which the commission must receive the renewal
application for the renewal to be issued and mailed before the
existing license expires; and
(3) The amount of the renewal fee.
(c) Before the license expires the licensee may renew it for
successive additional five-year terms if the licensee:
(1) Otherwise is entitled to be licensed;
(2) Pays to the commission the following renewal fee:
(A) The sum of twenty-five thousand dollars for a license to
operate a racetrack table gaming facility;
(B) The sum of five thousand dollars for a license to supply
a racetrack table gaming facility; and
(C) As set by the commission by rule in the case of a licensee
to be employed by an operator of a racetrack table gaming facility,
not to exceed three hundred dollars, which renewal fee may be paid
on behalf of the licensee by the employer; and
(3) Submits to the commission a renewal application in the
form that the commission requires accompanied by satisfactory
evidence of compliance with any additional requirements set by
rules of the commission for license renewal; and
(4) Submits to the commission evidence satisfactory to the
commission of the racetrack table gaming facility operator's
compliance with the plan described in subdivision (4), subsection
(a), section nine of this article to create at least two hundred
fifty full-time equivalent positions with a salary and benefit
package commensurate with existing employees at the licensed
racetrack. Notwithstanding the provisions of subsection (d) of
this section, the failure to substantially comply with the plan, as determined by the commission, may constitute grounds for the denial
of the renewal of the license.
(d) The commission shall renew the license of each licensee
who meets the requirements of this section.
§29-25A-17. License denial, revocation and reprimand.
(a) The commission may deny a license to any applicant,
reprimand any licensee, or suspend or revoke a license if the
applicant or licensee, or any controlling person of the applicant
or licensee:
(1) Fraudulently or deceptively obtains or attempts to obtain
a license for the applicant or licensee or for another;
(2) Fraudulently or deceptively uses a license; or
(3) Is convicted of a felony under the laws of this state,
another state, a territory of the United States or the United
States.
(b) Instead of or in addition to reprimanding a licensee or
suspending or revoking a license, the commission may impose a civil
penalty under section twenty-seven of this article.
§29-25A-18. Hearing procedures.
Except as otherwise provided by law, before the commission
takes any action involving a licensee under the provisions of this
article, it shall give the persons against whom the action is
contemplated an opportunity for a hearing before the commission.
The commission shall give notice and hold the hearing in accordance with state law. The notice shall be given to the person
by certified mail to the last known address of the person at least
thirty days before the hearing. The person may be represented at
the hearing by counsel.
If a person fails to comply with a subpoena issued under this
section, on petition of the commission, the circuit court shall
compel obedience to the subpoena. If after due notice the person
against whom the action is contemplated fails or refuses to appear,
the commission may hear and determine the matter.
Any person aggrieved by a final decision of the commission in
a contested case, as defined in chapter twenty-nine-a of this code,
may appeal as provided for in that chapter.
§29-25A-19. Consent to warrantless search.
As a condition of licensure and notwithstanding the separate
licensure of the facility as a private club pursuant to article
seven, chapter sixty of this code, any licensee shall consent to
any search without a warrant by agents of the commission or of the
state police designated by the commission of the licensee's person,
personal property and effects, and premises which are located in
the racetrack table gaming facility or adjacent facilities under
the control of the licensee, to inspect or investigate for criminal
violations of this article or violations of rules adopted by the
commission.
§29-25A-20. Consent to presence of law-enforcement officers; wagering limits.
(a) Consent to presence of law-enforcement officers. -- Any
individual entering a racetrack table gaming facility shall be
advised by the posting of a notice or other suitable means of the
possible presence of state, county or municipal law-enforcement
officers, and by entering the racetrack table gaming facility
impliedly consents to the presence of the law-enforcement officers.
(b) Setting of wagering limits. -- The operator of a racetrack
table gaming facility may set minimum and maximum wagers for any
authorized game of chance.
§29-25A-21. Taxes on racetrack table games.
(a) Imposition and rate of racetrack table gaming profits tax.
-- There is hereby levied and shall be collected a privilege tax
against a gaming licensee in an amount to be determined by
application of the rate against adjusted gross receipts of the
licensed racetrack table gaming facility. The rate of tax is
thirty-seven percent. This tax is in addition to all other taxes
and fees imposed: Provided, That the consumers sales and services
tax imposed pursuant to article fifteen, chapter eleven of this
code may not apply to the proceeds from any wagering with respect
to an authorized game of chance pursuant to this article.
(b) Computation and payment of tax. -- The taxes levied under
the provisions of this section are due and payable in monthly
installments on or before the twenty-first day of the month following the month in which the tax is accrued. The taxpayer
shall, on or before the twenty-first day of each month make out and
mail to the commission a return for the preceding month, in the
form prescribed by the commission, showing: (1) The total gross
receipts from the racetrack table gaming facility for that month
and the adjusted gross receipts; (2) the amount of tax for which
the taxpayer is liable; and (3) any further information necessary
in the computation and collection of the tax which the tax
commissioner or the commission may require. Payment of the amount
of tax due shall accompany the return. All payments made pursuant
to this section shall be deposited in the state racetrack table
gaming fund.
(c) Prohibition on credits. -- Notwithstanding any other
provision of this code to the contrary, no credits may be allowed
against any tax imposed on any taxpayer by this code for an
investment in gaming devices and supplies, for an investment in
real property which would be directly utilized for the operation of
a racetrack table gaming facility or for any jobs created at a
racetrack table gaming facility. Notwithstanding any other
provision of this code to the contrary, the tax imposed by this
section may not be added to federal taxable income in determining
West Virginia taxable income of a taxpayer for purposes of article
twenty-four, chapter eleven of this code.
§29-25A-22. State racetrack table gaming fund created; allocation of net income.
(a) There is hereby created a special fund in the state
treasury designated and to be known as the "state racetrack table
gaming fund." All revenues received from licenses and applicants
under this article, and all tax revenues from the tax imposed under
section twenty of this article shall be deposited with the state
treasurer and placed in the state racetrack table gaming fund. The
fund shall be an interest bearing account with interest to be
credited to and deposited in the state racetrack table gaming fund.
(b) All expenses of the commission shall be paid from the
state racetrack table gaming fund, including reimbursement of the
state police for activities performed at the request of the
commission in connection with background investigations or
enforcement activities pursuant to this article, and including
payment of a salary supplement of fifty thousand dollars per year
to the lottery director from and after the beginning of actual
operation of a racetrack table gaming facility under this article
as additional compensation for the increased duties and
responsibilities associated with administering the gaming
facilities. At no time may the commission's expenses under this
article exceed fifteen percent of the total of the annual revenue
received from the licensee under this article, including all
license fees, taxes or other amounts required to be deposited in
the state racetrack table gaming fund. These expenses shall either be allocated to the particular racetrack table gaming facility for
which the expense is incurred, or for general expenses, shall be
allocated pro rata to the racetrack table gaming facilities based
on relative income from each gaming facility.
(c) The balance of the state racetrack table gaming fund after
deduction of the expenses paid under subsection (b) of this
section, which is referred to below as "state racetrack table
gaming fund net income," shall be divided as follows:
(1) Seventy-nine percent of the state racetrack table gaming
fund net income shall be paid into the general revenue fund to be
appropriated by the Legislature;
(2) The tourism promotion fund established in section nine,
article one, chapter five-b of this code shall receive three
percent of the state racetrack table gaming fund net income;
(3) The special fund established by each racetrack licensee,
and used for the payment of regular purses, shall receive fourteen
percent of the state racetrack table gaming fund net income;
(4) The county where the gaming facility is located shall
receive two percent of the state racetrack table gaming fund net
income;
(5) The municipalities within the county where the racetrack
table gaming facility is located, shall receive pro rata shares,
based on population at the last census, of two percent of the state
racetrack table gaming fund net income.
§29-25A-23. Prohibition on unauthorized wagering.
(a) A gaming licensee may not permit any form of wagering
except as authorized under this article.
(b) A gaming licensee may receive wagers only from an
individual present in a licensed racetrack table gaming facility.
(c) All racetrack table gaming facility operations shall use
a cashless wagering system whereby all players' money is converted
to tokens, electronic cards or chips at the request of the wagerer
which can only be used for wagering in a licensed racetrack table
gaming facility, and wagering may not be conducted with money or
other negotiable currency.
(d) The gaming licensee is prohibited from offering any
property or service, other than incidental food beverages and
discounts on overnight accommodations, to any person as an
inducement to participate in a game of chance.
§29-25A-24. Individual gaming restrictions.
(a) An individual may not enter a racetrack table gaming
facility or remain in a racetrack table gaming facility to
participate in authorized games of chance if the individual:
(1) Is under the age of eighteen years;
(2) Is intoxicated;
(3) Is determined by the racetrack table gaming facility
operator or the commission to be unruly, disruptive or otherwise
interfering with operation of the racetrack table gaming facility;
or to be likely to commit, or to attempt to commit, a violation of this article; or
(4) Has been barred by the commission from entering a
racetrack table gaming facility.
(b) Notwithstanding any provisions of this code to the
contrary, no employee of the commission may wager at the racetrack
table gaming facility.
§29-25A-25. Offenses and penalties.
(a) A gaming licensee is guilty of unlawful operation of a
game of chance when:
(1) The licensee operates the games authorized by this article
in any location in this state other than a racetrack table gaming
facility;
(2) The licensee acts, or employs another person to act, as a
shill or decoy to encourage participation in a game of chance in a
racetrack table gaming facility;
(3) The licensee knowingly permits an individual under the age
of eighteen years of age to enter or remain in a racetrack table
gaming facility for the purpose of making a wager; or
(4) The licensee exchanges tokens, chips or other forms of
credit to be used for wagering in a racetrack table gaming facility
for anything of value except in exchange for money.
(b) A person is guilty of felonious wager when:
(1) The person offers, promises or gives anything of value or
benefit to a person who is connected with a racetrack table gaming facility pursuant to an agreement or arrangement or with intent
that the promise or thing of value or benefit will influence the
actions of the person to whom the offer, promise, or gift was made
in order to affect or attempt to affect the outcome of an
authorized game of chance, or to influence official action of the
commission. For the purposes of this subdivision and subdivision
(2) of this subsection, the term "person who is connected with a
racetrack table gaming facility" includes, but is not limited to,
an officer or employee of a licensee;
(2) The person solicits or knowingly accepts or receives a
promise of anything of value or benefit while the person is
connected with a racetrack table gaming facility, pursuant to an
understanding or arrangement or with the intent that the promise or
thing of value or benefit will influence the actions of the person
to affect or attempt to affect the outcome of an authorized game of
chance, or to influence official action of the commission;
(3) The person uses or possesses with the intent to use a
device to assist:
(A) In projecting the outcome of an authorized game of chance;
(B) In keeping track of cards played or in play;
(C) In analyzing the probability of the occurrence of an event
relating to an authorized game of chance; or
(D) In analyzing the strategy for playing or betting to be
used in an authorized game of chance, except as permitted by the commission;
(4) The person cheats at an authorized game of chance in a
racetrack table gaming facility;
(5) The person manufactures, sells, or distributes any cards,
chips, dice, game or device which is intended to be used to violate
any provision of this article;
(6) The person instructs a person in cheating or in the use of
a device for that purpose with the knowledge or intent that the
information or use conveyed may be employed to violate any
provision of the article;
(7) The person places a bet after acquiring knowledge, not
available to all players, of the outcome of the game of chance
which is the subject of the bet, or aids a person in acquiring the
knowledge for the purpose of placing a bet contingent on that
outcome;
(8) The person claims, collects, takes, or attempts to claim,
collect or take, money or anything of value into or from a
racetrack table gaming facility, with intent to defraud, without
having made a wager contingent on winning a game of chance, or
claims, collects or takes an amount of money or thing of value of
greater value than the amount won;
(9) The person uses counterfeit chips or tokens to place a
wager in a racetrack table gaming facility;
(10) The person knowingly uses any medium other than chips, tokens or other methods of credit approved by the commission to
place a wager in a racetrack table gaming facility;
(11) The person, not a gaming licensee or employee or agent of
a gaming licensee acting in furtherance of the gaming licensee's
interests, has in his or her possession any device intended to be
used to violate a provision of this article; or
(12) The person, not a gaming licensee or agent of a gaming
licensee acting in furtherance of the gaming licensee's interests,
has in his or her possession any key or device designed for the
purpose of opening, entering or affecting the operation of an
authorized game of chance, drop box or an electronic or mechanical
device connected with or used in connection with an authorized game
of chance in a racetrack table gaming facility or for removing
coins, tokens, chips or other contents therefrom.
(c) Any person who violates the provisions of subsection (a)
of this section is guilty of a misdemeanor and, upon conviction
thereof, shall be fined not more than one thousand dollars or
confined in a jail for not more than six months.
(d) Any person who violates the provisions of subsection (b)
of this section is guilty of a felony and, upon conviction thereof,
shall be fined not less than five thousand dollars nor more than
ten thousand dollars or imprisoned in a state correctional facility
not less than one year nor more than five years, or both fined and
imprisoned.
§29-25A-26. Forfeiture of property.
(a) Anything of value, including all traceable proceeds
including, but not limited to, real and personal property, moneys,
negotiable instruments, securities and conveyances, is subject to
forfeiture to the state of West Virginia if the item was used for
any of the following:
(1) As a bribe intended to affect the outcome of an authorized
game of chance in a racetrack table gaming facility; or
(2) In exchange for or to facilitate a violation of this
article.
(b) Subsection (a) of this section does not apply if the act
or omission which would give rise to the forfeiture was committed
or omitted without knowledge or consent of the owner of the
property to be forfeited.
§29-25A-27. Civil penalties.
The commission may impose on a person who violates the
provisions of this article a civil penalty not to exceed ten
thousand dollars for each violation, whether or not the person is
licensed under this article.
The provisions of article five, chapter twenty-nine-a, of this
code shall apply to any civil penalty imposed pursuant to the
provisions of this section.
NOTE: The purpose of this bill is, subject to passage of
local option elections on the issue, to authorize racetrack table gaming facilities at licensed racetracks. This bill also provides
for state control, regulation and operation of these gaming
activities at licensed racetracks.
This article is new; therefore, strike-throughs and
underscoring have been omitted.
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