Kokochak v. West Virginia State Lottery Commission

695 S.E.2d 185, 225 W. Va. 614, 2010 W. Va. LEXIS 88
CourtWest Virginia Supreme Court
DecidedApril 26, 2010
Docket35299, 35300
StatusPublished
Cited by3 cases

This text of 695 S.E.2d 185 (Kokochak v. West Virginia State Lottery Commission) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kokochak v. West Virginia State Lottery Commission, 695 S.E.2d 185, 225 W. Va. 614, 2010 W. Va. LEXIS 88 (W. Va. 2010).

Opinions

DAVIS, Chief Justice:

These consolidated cases involve the validity of § 179-7-2.2 (2008) of the West Virginia Code of State Rules. In Case Number 35299, the appellant herein and defendant [616]*616below, the West Virginia State Lottery Commission (hereinafter “the Commission”), appeals from an order entered August 4, 2009, by the Circuit Court of Kanawha County. By that order, the circuit court found that W. Va.C.S.R. § 179-7-2.2 is an invalid legislative rule. In Case Number 35300, the appellant herein and petitioner below, the Parkersburg BPO Elks Lodge # 198 (hereinafter “the Elks”), appeals from an order entered June 3, 2009, by the Circuit Court of Kanawha County. By that order, the circuit court affirmed the Commission’s decision finding the subject rule to be a valid interpretive rule. On appeal to this Court, the parties differ as to whether § 179-7-2.2, which purports to interpret W. Va.Code § 29-22B-1201(a) (2001) (Repl.Vol.2008) by defining the phrase “licensed limited video lottery location approved by the commission,” is a valid interpretive rule or whether it is an invalid legislative rule. Upon a review of the parties’ arguments, the record presented for appellate consideration, and the pertinent authorities, we conclude that W. Va.C.S.R. § 179-7-2.2 is a valid interpretive rule. Accordingly, we reverse the decision of the Kanawha County Circuit Court in Case Number 35299. Furthermore, we affirm the decision of the Kanawha County Circuit Court in Case Number 35300.

I.

FACTUAL AND PROCEDURAL HISTORY

Although the legal dispute raised by these consolidated appeals is virtually identical, each case has its own unique factual and procedural history.

A. Case Number 35299 — Mr. Kokochak

David Kokochak (hereinafter “Mr. Kokochak”), the appellee herein and plaintiff below, owns a building in Chester, West Virginia. Mr. Kokochak wishes to lease this building to a tenant who operates licensed video lottery machines. However, because this building is less than 300 feet from a gas station, the building is not an approved location for a video lottery establishment because W. Va. C.S.R. § 179-7-2.2.C requires that a “licensed limited video lottery” establishment be “at least three hundred feet from a business that sells petroleum products capable of being used as fuel in an internal combustion engine.”

In order to challenge the validity of § 179-7-2.2.C, Mr. Kokochak filed a declaratory judgment action in the Circuit Court of Kanawha County. By order entered August 4, 2009, the circuit court granted Mr. Kokochak’s motion for summary judgment and determined that § 179-7-2.2.C is an invalid legislative rule. In rendering its ruling, the circuit court concluded

it is clear that Rule 179-7-2.2[.]c does, in fact, “regulate private conduct” and the “exercise of private rights or privileges” and “confers rights or privileges” when it precludes businesses within three hundred feet of a business that sells petroleum products from being a licensed limited video lottery location. No such restriction was made by the legislature. Further, the unambiguous language of West Virginia Code § 29-22B-1201(a) does not give the respondent [the Commission] legislative authority to promulgate a rule relative to distances, but states only that the terminals can be placed only in “licensed ... locations approved by the commission.”
Further, it is important to note that the West Virginia legislature did, in fact, specifically address the issue of location of limited video lottery retailers in West Virginia Code § 29-22B-1202. It specifically excludes certain locations. As argued by the Respondent in another context, if there is any ambiguity regarding the legislature’s intent to exclude particular locations from its prohibition in this statute, the maxim “expressio unius est exclusio alterius” applies here. The specific mention (and exclusions) of certain loeation(s) implies that other locations would not be excluded. The exclusions are not to be accomplished by interpretive rule.
This court finds that West Virginia Code of State Rules, Rule 179-7-2.2[.]c is in fact a “legislative rule” by definition, and not an “interpretive rule.” Because said rule was never authorized or approved by the state legislature, it is void and invalid. [617]*617(Emphasis in original). From this adverse ruling, the Commission appeals to this Court.

B. Case Number 35300 — The Elks

The Elks currently holds licenses to operate as a private club and to sell beer in the City of Parkersburg, West Virginia. The Elks additionally seeks to obtain a limited video lottery license to permit it to operate licensed video lottery machines at its lodge in downtown Parkersburg, which is located less than 300 feet from two churches, namely Saint Francis Xavier Catholic Church and Trinity Episcopal Church. Therefore, the Elks applied for a limited video lottery license, which application was rejected by the Commission because of the lodge’s proximity to the aforementioned churches. In this regal’d, W. Va.C.S.R. § 179-7-2.2.b requires that a “licensed limited video lottery” establishment be “at least three hundred feet from a church, school, daycare center, or the perimeter of a public park.”

Following the denial of its application, the Elks requested the Commission to review its application, which denial was upheld. The Elks then appealed to the Circuit Court of Kanawha County. By order entered June 3, 2009, the circuit court upheld the Commission’s decision to deny the Elks a limited video lottery license based upon the restrictions contained in W. Va.C.S.R. § 179-7-2.2.b. In this regal'd, the circuit court ruled

[fjirst, the Petitioner [the Elks] “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 and ... [,] [t]he licensing, control and regulation of limited video lottery by the state does not create ... the accrual of any value to the privilege of participation in any limited video lottery activity....” W. Va.Code § 29-22B-203(l) & (2)(D)----
Second, the Limited Video Lottery Act provides that “[v]ideo lottery terminals allowed by this article may be placed only in licensed limited video lottery locations approved by the eommission[,]” W. Va.Code § 29-22B-1201(a), but does not detail what a “licensed limited video lottery locations approved by the commission” is. Under the West Virginia Code, an interpretive rule may be used to establish the conditions for the exercise of exclusive agency discretion. W. Va.Code § 29A-l-2(3) [sic]. “A statute which provides for a thing to be done ... by a prescribed person or tribunal implies that it shall not be done ... by a different person or tribunal; and the maxim expressio unius est exclusio alterius, the express mention of one thing implies the exclusion of another, applies to such statute.” Syl. Pt. 1, in part, State ex rel. Battle v. Hereford, 148 W.Va. 97, 133 S.E.2d 86 (1963). The only body empowered to approve locations is explicitly the Respondent [the Commission]; the exclusive right to approve locations is vested with the Respondent which brings ... Rule 2.2(b) [sic] clearly within the ambit of the agency discretion portion of West Virginia Code § 29A-l-2(3) [sic].

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Kokochak v. West Virginia State Lottery Commission
695 S.E.2d 185 (West Virginia Supreme Court, 2010)

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Bluebook (online)
695 S.E.2d 185, 225 W. Va. 614, 2010 W. Va. LEXIS 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kokochak-v-west-virginia-state-lottery-commission-wva-2010.