W. Va. Code R. § 179-5-16 - Reservation of authority to have video lottery terminals on or before August 1, 2001by persons who held a private club license or Class "A" nonintoxicating beer license on January 1, 2001

16.1. On or before August 1, 2001, every person who on the January 1, 2001 held a private club license issued as provided W. Va. Code § 60-7-1 et seq., or a Class "A" nonintoxicating beer license issued as provided in W. Va. Code § 11-16-1 et seq., and who wants to offer video lottery terminals, as defined in this rule, for the enjoyment of the licensee's customers may file an application to be licensed as a limited video lottery retailer under this rule.

16.2. The applications shall be submitted on forms supplied by the director. Each application shall:

16.2.a. Be signed by the applicant or a person authorized to sign the application filed for a person who is not an individual; and

16.2.b. Provide all of the information requested by the commission.

16.3. The commission shall return to the applicant, for completion and re-filing an application that is incomplete in any material respect.

16.4. The application shall also elect and state whether the applicant intends to own or lease up to 2 video lottery terminals (up to 7 in the case of eligible fraternal and veterans' organizations) from a licensed manufacturer or obtain them from a licensed operator.

16.5. A licensee who elects to own 2 video lottery terminals (or 7 in the case of certain fraternal and veteran organizations) may obtain additional video lottery terminals from an operator or by being a successful bidder under W.Va. Code § 29-22B-1107 provided the total number of video lottery terminals on the licensee's premises does not exceed the number specified in subsection 16.4 of this section.

16.6. An applicant, upon payment of $1,000 per video lottery terminal the applicant intends to own or lease, shall be issued a permit to purchase or lease from a licensed manufacturer the number of video lottery terminals stated in the permit if the applicant held a private club license on January 1, 2001, and the applicant elects to own or lease up to 2 video lottery terminals from a licensed manufacturer (or up to 7 video lottery terminals in the case of an eligible fraternal or veterans' organization), and the applicant qualifies as a private club for a limited video lottery license.

16.7. An applicant who intends to own or lease video lottery terminals, upon payment of $1,000 per video lottery terminal, shall be issued a permit to purchase or lease from a licensed manufacturer the number of video lottery terminals stated in the permit if the applicant held a Class "A" nonintoxicating beer license on January 1, 2001, but did not also hold a private club license on that date for the location for which the application for a limited video lottery retailer's license is submitted.

16.8. The commission, when issuing a limited video lottery retailer's license to an applicant who qualifies as a private club for a limited video lottery license, shall also issue the applicant a certificate reserving up to 2 video lottery terminal authorizations (or up to 7 video lottery terminals authorizations in the case of an eligible fraternal or veterans' organization) as requested in the application filed on or before August 1, 2001 if the applicant held a private club license on January 1, 2001, and the applicant does not elect to own or lease up to 2 video lottery terminals from a licensed manufacturer (or up to 7 video lottery terminal authorizations in the case of an eligible fraternal or veterans' organization);

16.8.a. The applicant may then contract with an operator for video lottery terminals and give the certificate of reservation to the operator; and.

16.8.b. The operator, upon submitting to the commission a true copy of its contract with the licensed video lottery retailer along with the certificate of reservation issued to the retailer by the commission and payment of $1,000 per video lottery terminal stated in the certificate of reservation shall be issued a permit or an amended permit.

16.8.c. When a retailer that received a certificate of reservation, and has transferred that certificate of reservation to an operator, loses its limited video lottery retailer license, the underlying permit received in exchange for the retailer's certificate of reservation is void after the passage of 100 days for the number of terminals represented by the certificate of reservation.

16.9. When the commission issues a limited video lottery retailer's license to an applicant who held a Class "A" nonintoxicating beer license on January 1, 2001, but did not also hold a private club license on that date for the location for which the application for a limited video lottery retailer's license is submitted, and the applicant does not elect to own or lease up to 2 video lottery terminals from a licensed manufacturer (or up to 7 video lottery terminal authorizations in the case of an eligible fraternal or veterans' organization), the commission shall also issue the applicant a certificate reserving up to 2 video lottery terminal authorizations (or up to 7 video lottery terminals authorizations in the case of an eligible fraternal or veterans' organization) as requested in the application if it was filed on or before August 1, 2001;

16.9.a. The licensee may then contract with an operator for video lottery terminals and may give the certificate of reservation to the operator; and

16.9.b. The operator, upon submitting to the commission a true copy of its contract with the licensed video lottery retailer along with the certificate of reservation issued to the retailer by the commission and payment of $1,000 per video lottery terminal stated in the certificate of reservation shall be issued a permit or an amended permit.

16.10. An applicant shall not be issued a permit to purchase or lease video lottery terminals from a licensed manufacturer or a certificate of reservation if the applicant held a private club license or Class "A" nonintoxicating beer license on January 1, 2001, and if on August 1, 2001, the person does not qualify for issuance of a limited video lottery license. The person shall be required to obtain all video lottery terminals from a licensed operator or be a successful bidder under W.Va. Code § 29-22B-1107 if the person qualify in the future for a limited video lottery retailer's license.

16.11. An applicant shall not be issued a permit to purchase or lease video lottery terminals from a licensed manufacturer or a certificate of reservation if the applicant held a Class "A" nonintoxicating beer license on January 1, 2001 but not a private club license as of that date, and if on August 1, 2001, the person does not qualify for issuance of a limited video lottery license as a holder of a Class "A" nonintoxicating beer license. The person shall obtain all video lottery terminals from a licensed operator or be a successful bidder under W.Va. Code § 29-22B-1107 for authorization to purchase or lease video lottery terminals from a licensed manufacturer if the person is issued a private club license after December 31, 2000, and qualifies for a limited video lottery retailer's license.

16.12. A certificate of reservation issued by the commission that is not converted to a permit by December 31, 2004 is void.

Notes

W. Va. Code R. § 179-5-16