Current through Register Vol. XLI, No. 36, September 6, 2024
Section 179-4-3 - Provisions Pertaining to Applications, Records and Commission Authority3.1. In the interpretation of any rules adopted by the Commission, an ambiguity shall be resolved in favor of the interpretation which would provide either of the following: 3.1.a. The greater assurance of integrity in either the operation or regulation of casino gambling; or3.1.b. Heightened public confidence in the regulation or regulatory processes relating to casino gambling.3.2. If a provision of a rule promulgated by the Commission or the application of a rule to any person or circumstance, is held invalid by a court of competent jurisdiction, then the provision or application shall not affect other provisions that can be given effect without the invalid provision or application.3.3. The limited gaming facility licensee and each supplier licensee shall maintain, in a place secure from theft, loss, or destruction, adequate records of its business and accounting operations relating to the gaming operations regulated by this rule. The limited gaming facility licensee or a supplier licensee shall make the records available to the Commission, upon request, within a reasonable time period prescribed by a subpoena duces tecum or by written request of the Director, or his or her designee. A limited gaming facility licensee shall keep and maintain the books, records, or documents in a manner and form approved or required by the Commission.3.3.a. The limited gaming facility licensee or a supplier licensee shall hold the records for the current year and the two previous years. Records held off-site shall be retrieved and presented to the Commission's representative within five days of the request to do so. The records shall include, but not be limited to, all of the following: 3.3.a.1. All correspondence with, or reports to, the Commission or any local, state, or federal governmental agency;3.3.a.2. All correspondence concerning the acquisition, construction, maintenance, or business of a proposed or existing the limited gaming facility;3.3.a.3. A personnel file on each employee; and3.3.a.4. All accounting records, ledgers, subsidiary records, computer generated data and internal audit records pertaining to gambling or video lottery activities.3.3.b. Notwithstanding the foregoing provisions of subdivision 3.3.a of this rule, a limited gaming facility licensee or supplier licensee shall hold copies of all promotional and advertising material, records, or complimentary distributions for the limited gaming facility for at least one year.3.3.c. The limited gaming facility shall organize and index all required records in a manner that enables the Commission to locate, inspect, review, and analyze the records with reasonable ease and efficiency.3.3.d. Nothing in subsection 3.3 of this rule shall be construed to require disclosure of documents subject to the attorney-client privilege if the licensee or applicant informs the Director of the existence of the document, a general description of its contents, and the basis for the privilege.3.4. Unless otherwise permitted or required, a person shall submit all forms, fees, documents, papers, and other materials to Lottery Headquarters in the manner and form prescribed by the Commission.3.5. An action of the West Virginia Lottery regarding an applicant or licensee relates only to the applicant's or licensee's qualification for licensure under the Act and this rule and does not indicate or suggest that the Commission has considered or passed on the qualifications or application of the applicant or licensee for any other purpose.3.6. A licensee shall disclose changes in information.3.6.a. Except as otherwise provided in this rule, if an obligation has been placed upon a licensee to report or submit information to the West Virginia Lottery, the reporting or submission may be accomplished by providing the information to an employee of the West Virginia Lottery.3.6.b. A licensee or an applicant for a license has a continuing duty to disclose any material changes in information provided to the West Virginia Lottery within thirty days of the time that the applicant or licensee becomes aware of the change. The duty to disclose changes in information continues throughout any period of licensure granted by the West Virginia State Lottery Commission. A licensee or applicant shall make sure that all required release of information forms submitted to the West Virginia Lottery are current.3.7. An applicant or licensee shall disclose representatives.3.7.a. An applicant or licensee shall file with the West Virginia Lottery a list of persons authorized to act on the applicant's or licensee's behalf as to any matter before the Commission. An attorney appearing on behalf of an applicant or licensee in a matter before the Commission shall promptly file an appearance identifying his or her client and the matter in which the attorney will appear.3.7.b. A person holding or applying for the limited gaming facility license or supplier license shall establish and identify a registered agent within the State of West Virginia for the purpose of accepting service of process, notices, and other forms of communication for the person holding or applying for a limited gaming facility license or supplier license.3.8. A limited gaming facility licensee or supplier licensee shall conduct a reasonable investigation of the background of employees whose duties are related to, or involved in, the conduct of gambling operations in the State of West Virginia to reasonably ensure that the employee is eligible and suitable for the employment under the licensing standards and other requirements of the Act and this rule. A limited gaming facility licensee or supplier licensee shall keep and maintain written records of investigations for all employees. The limited gaming facility licensee or supplier licensee shall make the written records available to the Commission, upon request, within a reasonable time period prescribed by the West Virginia Lottery. Licensure by the Commission may not be relied on by the licensee as the sole criterion for hiring a job applicant.3.9. Provisions for investigative hearings.3.9.a. The Commission, when necessary, may conduct hearings for the purpose of investigating an applicant, an application, a licensee, or a third party to gather information regarding eligibility and suitability for licensure, alleged violations of the Act or this rule, or other Commission action under the Act or this rule.3.9.b. The Commission may require an applicant, a licensee, or a key person or employee of an applicant or licensee to testify or to produce any documents, records, or other materials at a proceeding conducted under this rule.3.9.c. The Commission, through the Director or his or her designee, may issue subpoenas and subpoenas duces tecum for the production of persons, documents, or other items at a proceeding conducted under this rule.3.9.d. All testimony at proceedings conducted under this rule shall be given under oath or affirmation administered by a Commission member, hearing officer, or the Director or a person designated by the Director.3.10. Participation in games by owners, directors, officers, key persons, or gaming employees prohibited. An officer, director, key person, managerial employee, or occupational licensee of the limited gaming facility licensee shall not play or be permitted to play any gambling game at the limited gaming facility except in the course of employee training or when that person is demonstrating to one or more patrons how to play a permitted casino game or video lottery game. A person regulated by this rule shall not be permitted to redeem chips or tokens for any other person, except that a person may redeem chips or tokens in the course of his or her employment with the limited gaming facility.3.11. Receipt of commercially reasonable consideration for contracts and transactions are required. An applicant for, or holder of the limited gaming facility or supplier license may not enter into or perform any contract or transaction in connection with gambling operations or casino operations related to the limited gaming facility license or supplier license for which application has been made or which the licensee holds unless the applicant or licensee transfers or receives consideration that is commercially reasonable.3.12. The Commission delegates to the Director all power and authority to act in the name of the West Virginia Lottery with respect to all reasonable, necessary, and appropriate actions to administer and carry out the administrative and executive functions of the West Virginia Lottery, including, but not limited to, the power to do any of the following: 3.12.a. Issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of documents and materials;3.12.b. Administer oaths;3.12.c. Issue and renew occupational licenses under this rule;3.12.d. Request and accept documents, plans, procedures, amendments to procedures, and other information necessary for the West Virginia Lottery to carry out its duties under the Act and this rule;3.12.e. Conduct investigations, inspections, audits, share information with law enforcement agencies; and engage in other functions necessary to the proper administration and enforcement of the Act and this rule; and3.12.f. Grant requests and waivers, answer inquiries, issue interpretations, and otherwise take any action that is reasonably requested by applicants and licensees in furtherance of, and consistent with, the efficient administration and enforcement of the provisions of the Act and this rule, as determined to be necessary or appropriate by the Director.3.13. The limited gaming facility licensee or license applicant shall maintain a central repository of all of its contracts at its facility that relate to its gambling and video lottery operations. The Director and designated West Virginia Lottery employees shall be allowed unrestricted access to the repository and any contract or transaction entered into by the limited gaming facility licensee or license applicant upon demand. The licensee or applicant may be required by the Director to submit promptly copies of any contract upon written request of the Director.