W. Va. Code R. § 179-1-4 - Licensing

Current through Register Vol. XXXIX, No. 11, March 18, 2022

4.1. The Commission shall license as lottery sales agents and as lottery retailers those persons who will, in the judgment of the Commission, meet the statutory requirements for licensing, promote the sale of lottery tickets and materials, promote the best interest of the Lottery and of the State, and achieve the goals of the statute.
4.1.a. Any person interested in obtaining a license as a lottery retailer or licensed lottery sales agent shall first file an application with the Director on a form supplied for that purpose by the Director. The application form shall be designed to solicit sufficient relevant information from an applicant to permit the Director to make the determination required by the Lottery Act and this rule for issuance of a license by the Commission.
4.1.b. The license of a licensed lottery sales agent or lottery retailer in any capacity is a privilege personal to that person and is not a legal right. The license is revocable by the Director. A licensed lottery sales agent or lottery retailer may surrender the license to the Director.
4.2. Eligibility for licensing. Any person may submit an application for licensing as a lottery agent or retailer, except:
4.2.a. No person may submit an application who will engage in business solely as a licensed lottery sales agent or lottery retailer;
4.2.b. No person under the age of twenty-one (21) may submit an application for licensing as a lottery sales agent or lottery retailer;
4.2.c. No person may submit an application who is a member of the Commission or an employee of the agency, or who is the spouse, child, brother, sister or parent, by blood or marriage, residing as a member of the same household or in the principal place of abode of a member of the Commission or employee of the agency;
4.2.d. No person may submit an application who is a vendor of lottery tickets or material or data processing services, or, which is owned by, controlled by, or affiliated with a vendor of lottery tickets or materials or data processing services;
4.2.e. No foreign corporation may submit an application unless it is currently registered to do business within the State of West Virginia; and,
4.2.f. No establishment may qualify to receive an additional endorsement to sell the TRAVEL game unless that establishment complies with general law relating to the game TRAVEL.
4.3. Disqualification, grounds of refusal of a license.
4.3.a. The Commission shall require all new applicants for licenses to furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation. The fingerprints shall be furnished by all persons required to be named in the application and shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation.
4.3.b. The Commission may require any applicant seeking the renewal of a license to furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation. The West Virginia Lottery may require all or any part of the persons required to be named in an application to provide fingerprints and the fingerprints shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation.
4.3.c. The Commission shall refuse to grant a license to any person who is subject to an exception to subsection 4.2. of this rule or to any applicant who has been convicted of a violation of:
4.3.c.1. W. Va. Code § 29-22-1 et seq.;
4.3.c.2. Any felony; or
4.3.c.3. Any crime related to theft or gambling or involving moral turpitude unless within the discretion of the Commission, it is determined that an appropriate amount of time has elapsed since the conviction to ensure rehabilitation of the applicant: Provided, That upon conviction of the crimes enumerated in this subdivision 4.3.3 of this subsection a current licensee is disqualified from holding a license for a period of at least five years: Provided, however, that no applicant may be licensed if convicted of the crimes enumerated in this paragraph within the five year period immediately preceding the filing of an application for a license.
4.4. Issuance of licenses. Upon receipt, review and investigation of applications and applicant background, the Commission may issue annual licenses for sales of lottery tickets in accordance with this rule. The Commission shall license only those persons or entities which, in its opinion, will best serve the public interest and public trust in the Lottery and promote the sales of lottery tickets. Prior to issuing any license, the Commission shall consider the following factors:
4.4.a. The moral character and reputation of the applicant;
4.4.b. The financial responsibility and security of the applicant and his or her business or activity;
4.4.c. The accessibility of the public to the licensed premises proposed by applicant;
4.4.d. The number and sufficiency of existing licenses to serve the public interest;
4.4.e. The volume of applicant's expected lottery ticket sales;
4.4.f. The security and efficient operation of the Lottery;
4.4.g. Whether the applicant is ineligible under any provisions of the Lottery Act;
4.4.h. Whether the applicant has received or will hold, either as principal, entity, subsidiary agent, or subcontractor more than twenty-five percent (25%) of the licenses to act as lottery sales agent in any one (1) county or municipality, or more than five percent (5%) of the licenses issued statewide, unless eligible for consideration for an exception under the Act;
4.4.i. Whether the applicant has provided false or misleading information or has misrepresented information regarding qualifications or fitness for licensure;
4.4.j. Whether the applicant is a West Virginia corporation or is currently licensed to do business within the State of West Virginia and whether the applicant's state taxes are current; and
4.4.k. Whether any person listed on the application owes an unpaid debt to the West Virginia Lottery other than a debt extinguished by bankruptcy discharge.
4.5. Revocation; grounds for removal or suspension of license or non-renewal of license.
4.5.a. The Commission may, for any reason outlined in this section, or for other cause shown revoke, suspend, or decline to renew a license of a lottery sales agent or lottery retailer.
4.5.b. If at any time after issuance of a license, it is determined by the Director that a licensed lottery sales agent or lottery retailer would no longer meet the standards for the issuance of a license provided in this rule, he or she may immediately suspend the license. The suspension shall remain in effect until the reason for suspension has abated, or in the alternative, he or she may ask the Commission to revoke the license.
4.5.c. If the licensed lottery sales agent or lottery retailer fails to observe and comply with the procedures and the rules of the Commission or with the provisions of the Lottery Act, or orders or instructions of the Director, the Commission may suspend or revoke the license of that person.
4.5.d. Additional grounds for suspension or revocation of license.
4.5.d.1. Non-compliance with Lottery Act or Rules. The Director may suspend or recommend to the Commission that it revoke the license of a licensed lottery sales agent or lottery retailer who does not comply with the Lottery Act and all rules, conditions, standards and other policies adopted, promulgated or issued under the Lottery Act, by the Commission or the Director.
4.5.d.2. Violation of prohibitions. The Commission may suspend or revoke the license of any licensed lottery sales agent or lottery retailer who violates one of the prohibitions set out in the subparagraphs of this paragraph.
4.5.d.2.A. A licensed lottery sales agent or lottery retailer shall not sell a ticket at a price greater than or less than that stated by the Commission. No ticket may be sold on a credit basis by an agent or retailer.
4.5.d.2.B. A licensed lottery sales agent or lottery retailer shall not sell a ticket at a location or premises different than that shown on the license certificate.
4.5.4.2.C. A licensed lottery sales agent or lottery retailer shall not permit any other person to sell tickets consigned to him or her; provided that a licensed lottery sales agent or lottery retailer may sell tickets through his or her employees.
4.5.d.2.D. No licensed lottery sales agent or lottery retailer shall sell a ticket to any person under eighteen (18) years of age.
4.5.d.2.E. No licensed lottery sales agent or lottery retailer, directly or indirectly, on behalf of himself or herself, or another, nor any organization, shall invite, solicit, demand, or offer or accept any payment, contribution, favor, or other consideration to influence the award, renewal or retention of a license.
4.5.d.2.F. A ticket shall not be purchased with food stamps or other government food subsidy coupons and the licensed lottery sales agent or lottery retailer shall not accept as consideration for a ticket food stamps or other government food subsidy coupons nor any other coupons whatsoever unless specifically sanctioned and/or offered by the West Virginia Lottery Commission and securely identified as sanctioned.
4.5.d.2.G. A licensed lottery sales agent or lottery retailer shall not transfer ticket stock, used for on-line terminals, between stores in the same chain unless the transfer is consented to in writing by a person authorized by the Director to consent.
4.5.d.2.H. A licensed lottery sales agent or lottery retailer shall not transfer instant tickets between individual stores in the same chain unless the licensed lottery sales agent or lottery retailer verbally or in written form notifies the Director, or a person authorized by the Director to grant written consent, that it intends to transfer instant tickets between individual stores within the same chain. Notification shall occur prior to the transfer of tickets.
4.5.d.2.I. A licensed lottery sales agent or lottery retailer shall not sell any lottery ticket, lottery chance or lottery product unless the game being sold is approved by the Commission.
4.5.d.3. Grounds relating to the honest and efficient conduct of the Lottery. The Director may suspend or recommend to the Commission the revocation of a licensed lottery sales agent's or lottery retailer's license for any of the following:
4.5.d.3.A. The licensed lottery sales agent or lottery retailer has made a fraudulent misrepresentation in connection with his or her application for a license, in any of his or her reports, or to any person in connection with a lottery transaction;
4.5.d.3.B. The licensed lottery sales agent or lottery retailer has failed to maintain the sales levels set for him or her by the Director;
4.5.d.3.C. The licensed lottery sales agent or lottery retailer has begun to engage in the sale of lottery tickets as his or her sole business, occupation or activity;
4.5.d.3.D. The licensed lottery sales agent or lottery retailer has failed to take adequate security precautions for the safe handling of tickets, lottery materials or ticket sales proceeds due from the licensed lottery sales agent's or lottery retailer's ticket sales;
4.5.d.3.E. The licensed lottery sales agent or lottery retailer has failed to regularly, promptly and accurately settle the accounts of his or her lottery transactions and pay the amounts due from the licensed lottery sales agent's or lottery retailer's ticket sales;
4.5.d.3.F. The licensed lottery sales agent or lottery retailer has failed to notify the Director of any change in ownership;
4.5.d.3.G. The licensed lottery sales agent or lottery retailer has failed to open his or her books or records for reasonable inspection by the Lottery Commission or Director;
4.5.d.3.H. The licensed lottery sales agent or lottery retailer has failed to display his or her license or required advertising and display material; or
4.5.d.3.I. The licensed lottery sales agent or lottery retailer has failed to make a report of a violation of this rule or the retailer's conviction of any felony or crime related to theft or gambling or involving moral turpitude. At any time during the term of his or her license, if a lottery retailer or a licensed lottery sales agent is convicted of a felony or a gambling related offense, the lottery retailer or licensed lottery sales agent or licensee shall within fourteen (14) days, notify the Director, in writing, of the conviction and the offense. For purposes of this section, a licensed lottery sales agent or lottery retailer includes any natural person or in the case of other persons, as defined in subsections 2.14 and 2.15 of this rule, any person who holds ownership or a controlling interest in the entity.
4.6. Transfers of licenses; licensed premises.
4.6.a. Licenses nontransferable. Each license shall authorize a specified person to sell tickets at a specified location. No license may be transferred to another person. If the control of a licensed lottery sales agent or lottery retailer changes hands, the licensed lottery sales agent or lottery retailer may not sell any more tickets until he or she has submitted a new license application and the Director has issued a new license.
4.6.b. Change of location. If a licensed lottery sales agent or lottery retailer changes the location of his or her place of business, he or she shall not sell tickets at the new location until the Director has authorized the transfer of lottery sales agent's or lottery retailer's license to the lottery sales agent's or lottery retailer's new location. The Director shall consider all information concerning the licensed lottery sales agent's or lottery retailer's new location in the manner which would be required were the licensed lottery sales agent or lottery retailer making an initial application for a license at that location.
4.7. License term and renewal, fees.
4.7.a. Provisional licenses. Pending a final resolution of any question arising in respect of a licensing decision, the Director may issue a license subject to any terms and conditions he or she considers appropriate. Any provisional license expires on the expiration date shown on its face which in any case shall not be more than one (1) year from the date the provisional license is issued.
4.7.b. Annual license. Every holder of a license, other than a provisional license, shall renew the license annually, by July 1.
4.7.c. Temporary license. For specific events and activities or under special conditions and for limited duration the Director may issue to organizations or other persons a temporary license for the duration of the event or conditions with special terms the Director considers desirable.
4.7.d. License fees.
4.7.d.1. Upon initial application for licensing as a lottery retailer, the applicant shall pay to the Commission a non-transferable non-refundable license fee of twenty-five dollars ($25.00).
4.7.d.2. Upon initial application for installation of a lottery sales terminal, the applicant shall submit a fee of two hundred fifty dollars ($250) , which shall be a deposit refundable only under certain terms to be set out in the Lottery contract for lottery sales agents.
4.7.d.3. Upon application for renewal of licensing as a lottery retailer or licensed lottery sales agent, all lottery retailers shall submit a uniform annual fee of five dollars ($5.00).
4.7.d.4. After the initial year of operation as a lottery sales agent, the agent may be charged a uniform weekly service fee of five dollars ($5.00) as long as the agent weekly average sales of meet or exceed the uniform standards set by the Commission. When any agent's weekly average sales is less than the minimum amount set by the Commission, the agent may be required to reimburse the Commission for the difference of the minimum amount set by the Commission and the agent's weekly average sales. The weekly average sales standards shall be set in a reasonable and uniform amount to cover the Commission's estimated cost of providing services and equipment related to the sale of traditional lottery products at the agent's licensed location: Provided, That such services and equipment are limited to those provided pursuant to the relevant terms of the Lottery's contract with its central system and services vendor and at no point shall any reimbursement exceed three hundred fifty dollars ($350) .
4.7.d.5. In the event that a business changes ownership and an on-line terminal is in place and operating and the new owner meets all other requirements for licensing as a lottery retailer, there shall be no initial installation fee and the agent may be charged the uniform weekly service fee of up to five dollars ($5.00) effective from the first day of operation.
4.8. Bonds
4.8.a. Each lottery sales agent shall participate in the Financial Guarantee Bond program provided by the Lottery in the amount of at least ten thousand dollars ($10,000) for each terminal on the premises. The bond shall be renewed on an annual continuing basis. Payment for bonding shall be made by Electronic Funds Transfer from the sales agents' bank accounts to the lottery's Revenues and Transfers Account each year.
4.8.b. If it is determined by the Director that the lottery sales agent should be bonded for an amount and in a form and manner different from the Financial Guarantee Bond of at least ten thousand dollars ($10,000), or if other security should be provided by the agent to ensure the performance of the agent's duties and responsibilities as a licensed lottery agent or the indemnification of the Commission, the Director shall determine the amount, form and manner of the coverage.
4.9. Contract
4.9.a. The Director shall enter into a contract with each lottery retailer and licensed lottery sales agent. The contract shall set out the duties, responsibilities, and obligations pertaining to the parties to the contract. The contract shall continue in effect during the period which the retailer or agent complies with applicable statutes, rules, fee requirements, and any other duties or requirements under the terms of the contract.

Notes

W. Va. Code R. § 179-1-4

The following state regulations pages link to this page.



State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.