H.B. 3292
(By Delegates Doyle, Tabb and Wysong)
[Introduced on March 25, 2005; referred to the Committee on
Government Organization then Finance.]
A BILL to amend and reenact §19-23-4, §19-23-6, §19-23-9 and 19-23-
12b of the Code of West Virginia, 1931, as amended, all
relating to amending certain provisions of the code involving
horse and dog racing
; increasing the number of members on the
Commission, requiring a representative of the horsemen on the
Commission; requiring a representative of the dog owners on
the Commission; expanding the arbitration provisions to
include all disputes between a licensee and the representative
of a majority of the horsemen at a track and any other
organized group of employees at a licensee upon the request of
any party; abolishing the prohibition on interfering in the
internal affairs of the licensee; requiring the licensee and
the representatives of a majority of the horsemen at the licensee to negotiate and agree on the condition and purse
structure; increasing the number of racing days a licensee is
required to apply for; and requiring a licensee to make up all
cancellations in January and February that are due to adverse
weather conditions.
Be it enacted by the Legislature of West Virginia:
That
§19-23-4, §19-23-6, §19-23-9 and 19-23-12b
of the Code of
West Virginia, 1931, as amended, be amended and reenacted, all to
read as follows:
CHAPTER 19. AGRICULTURE.
ARTICLE 23. HORSE AND DOG RACING.
§19-23-4. West Virginia Racing Commission continued as a public
corporation; composition; terms; vacancies; qualifications,
expenses of members; principal office; meetings; election of
officers; quorum; inspection of records; annual report.
(a) The "West Virginia Racing Commission," is continued in
existence as a public corporation and, as such, may contract and be
contracted with, plead and be impleaded, sue and be sued and have
and use a common seal.
(b) The Racing Commission shall consist of three five members,
not more than two three of whom shall belong to the same political
party, to be appointed by the Governor by and with the advice and
consent of the Senate. At least one member of the Commission shall
be a representative of a majority of the horsemen at the licensees in the state and at least one member of the Commission shall be a
representative of the majority of dog owners at a licensee. The
term of office for the members of the Racing Commission is four
years, and until their successors have been appointed and have
qualified, and members of the Racing Commission may serve any
number of successive terms. The members of the Racing Commission in
office on the effective date of the amendment and reenactment of
this section in two thousand one two thousand five shall, unless
removed by the Governor after the effective date of this article,
continue to serve until their terms expire and until their
successors have been appointed and have qualified. Any vacancy in
the office of a member of the Racing Commission shall be filled by
appointment by the Governor for the unexpired term of the member
whose office shall be vacant. No person is eligible for appointment
to or to serve upon the Racing Commission:
(1) Unless he or she is an actual and bona fide resident of
this state, shall have resided in this state for a period of at
least five years next preceding his or her appointment, shall be a
qualified voter of this state and be not less than twenty-five
years of age;
(2) Who directly or indirectly, or in any capacity, owns or
has any interest, in any manner whatever, in any racetrack where
horse or dog race meetings may be held, including, but not limited
to, an interest as owner, lessor, lessee, stockholder or employee;
(3) While serving as a member of the Legislature or as an elective officer of this state; or
(4) Who has been or shall be convicted of an offense which,
under the law of this state or any other state or of the United
States of America, constitutes a felony, or is a violation of
article four, chapter sixty-one of this code.
(c) Each member of the Racing Commission shall be reimbursed
for all reasonable and necessary expenses actually incurred in the
performance of his or her duties as a member of the Racing
Commission.
(d) The Racing Commission shall have its principal office at
the seat of government, and shall meet annually at its principal
office in the month of January, and at any other times and places
designated by its chairman. At the annual meeting the Racing
Commission shall elect from its membership a chairman and any other
officers that are desired. Other meetings of the Racing Commission
may be called by the chairman on such notice to the other members
prescribed by the Racing Commission.
(e) A majority of the members of the Racing Commission
constitute a quorum for the transaction of its business or the
exercise of any of its powers and authority. No person not a bona
fide member of the Racing Commission shall vote upon or participate
in the deliberations of the Racing Commission on any matter which
may come before it. All Racing Commission records, except as
otherwise provided by law, shall be open to public inspection
during regular office hours.
(f) As soon as possible after the close of each calendar year,
the Racing Commission shall submit to the Governor a report of the
transactions of the Racing Commission during the preceding calendar
year.
§19-23-6. Powers and authority of Racing Commission.
The Racing Commission has full jurisdiction over and shall
supervise all horse race meetings, all dog race meetings and all
persons involved in the holding or conducting of horse or dog race
meetings and, in this regard, it has plenary power and authority:
(1) To investigate applicants and determine the eligibility of
the applicants for a license or permit or construction permit under
the provisions of this article;
(2) To fix, from time to time, the annual fee to be paid to
the Racing Commission for any permit required under the provisions
of section two of this article;
(3) To promulgate reasonable rules and regulations
implementing and making effective the provisions of this article
and the powers and authority conferred and the duties imposed upon
the Racing Commission under the provisions of this article,
including, but not limited to, reasonable rules and regulations
under which all horse races, dog races, horse race meetings and dog
race meetings shall be held and conducted, all of which reasonable
rules and regulations shall be promulgated in accordance with the
provisions of article three, chapter twenty-nine-a of this code:
Provided, That in accordance with article three, chapter twenty-nine-a, the Racing Commission shall promulgate separate rules
pertaining to the kinds of legal combination wagers which may be
placed in connection with the pari-mutuel system of wagering
authorized by this article;
(4) To register colors and assumed names and to fix, from time
to time, the annual fee to be paid to the Racing Commission for any
such registration;
(5) To fix and regulate the minimum purse to be offered during
any horse or dog race meeting;
(6) To fix a minimum and a maximum number of horse races or
dog races to be held on any respective racing day;
(7) To enter the office, horse racetrack, dog racetrack,
kennel, facilities and other places of business of any licensee to
determine whether the provisions of this article and its reasonable
rules and regulations are being complied with, and for this
purpose, the Racing Commission, its racing secretary,
representatives and employees may visit, investigate and have free
access to any such office, horse racetrack, dog racetrack, kennel,
facilities and other places of business;
(8) To investigate alleged violations of the provisions of
this article, its reasonable rules and regulations, orders and
final decisions and to take appropriate disciplinary action against
any licensee or permit holder or construction permit holder for the
violation thereof or institute appropriate legal action for the
enforcement thereof or take such disciplinary action and institute such legal action;
(9) By reasonable rules and regulations, to authorize
stewards, starters and other racing officials to impose reasonable
fines or other sanctions upon any person connected with or involved
in any horse or dog racing or any horse or dog race meeting; and to
authorize stewards to rule off the grounds of any horse or dog
racetrack any tout, bookmaker or other undesirable individual
determined inimical to the best interests of horse and dog racing
or the pari-mutuel system of wagering in connection therewith;
(10) To require at any time the removal of any racing official
or racing employee of any licensee, for the violation of any
provision of this article, any reasonable rule and regulation of
the Racing Commission or for any fraudulent practice;
(11) To acquire, establish, maintain and operate, or to
provide by contract for the maintenance and operation of, a testing
laboratory and related facilities, for the purpose of conducting
saliva, urine and other tests on the horse or dog or horses or dogs
run or to be run in any horse or dog race meeting, and to purchase
all equipment and supplies considered necessary or desirable in
connection with the acquisition, establishment, maintenance and
operation of any testing laboratory and related facilities and all
such tests;
(12) To hold up, in any disputed horse or dog race, the
payment of any purse, pending a final determination of the results
thereof;
(13) To require each licensee to file an annual balance sheet
and profit and loss statement pertaining to the licensee's horse or
dog racing activities in this state, together with a list of each
licensee's stockholders or other persons having any beneficial
interest in the horse or dog racing activities of the licensee;
(14) To issue subpoenas for the attendance of witnesses and
subpoenas duces tecum for the production of any books, records and
other pertinent documents, and to administer oaths and affirmations
to such witnesses, whenever, in the judgment of the Racing
Commission, it is necessary to do so for the effective discharge of
its duties under the provisions of this article;
(15) To keep accurate and complete records of its proceedings
and to certify the same as may be appropriate;
(16) To take any other action that may be reasonable or
appropriate to effectuate the provisions of this article and its
reasonable rules and regulations;
(17) To provide breeders' awards, purse supplements and moneys
for capital improvements at racetracks in compliance with section
thirteen-b of this article; and
(18) To mediate on site, upon request of a party, all disputes
existing between the racetrack licensees located in this state and
representatives of a majority of the horse owners and trainers
licensed at the track and any other organized group of employees at
a licensee which threaten to disrupt any scheduled racing event or
events. The Racing Commission shall, upon the request of a party, mediate on site, all disputes existing between racetrack licensees
and representatives of pari-mutuel clerks which threaten to disrupt
any scheduled racing event or events. When a request for mediation
is made, the commission shall designate from among its members one
person to act as mediator in each dispute that arises. Each
opposing party involved in any dispute shall negotiate in good
faith with the goal of reaching a fair and mutual resolution. The
mediator may issue recommendations designed to assist each side
toward reaching a fair compromise: Provided, That no owner or
operator or any horse owner or trainer or any pari-mutuel clerk
licensed at the track or any other organized group of employees at
the licensee may be required to abide by any recommendation made by
any mediator acting pursuant to this subsection. The racing
commission shall not interfere in the internal business or internal
affairs of any licensee.
§19-23-9. Pari-mutuel system of wagering authorized; licensee
authorized to deduct commissions from pari-mutuel pools; retention
of breakage; auditing; minors.
(a) The pari-mutuel system of wagering upon the results of any
horse or dog race at any horse or dog race meeting conducted or
held by any licensee is hereby authorized, if and only if such
pari-mutuel wagering is conducted by the licensee within the
confines of the licensee's horse racetrack or dog racetrack, and
the provisions of section one, article ten, chapter sixty-one of
this code, relating to gaming shall not apply to the pari-mutuel system of wagering in manner and form as provided for in this
article at any horse or dog race meeting within this state where
horse or dog racing shall be permitted for any purse by any
licensee. A licensee shall permit or conduct only the pari-mutuel
system of wagering within the confines of the licensee's racetrack
at which any horse or dog race meeting is conducted or held.
(b) A licensee is hereby expressly authorized to deduct a
commission from the pari-mutuel pools, as follows:
(1) The commission deducted by any licensee from the pari-
mutuel pools on thoroughbred horse racing, except from thoroughbred
horse racing pari-mutuel pools involving what is known as multiple
betting in which the winning pari-mutuel ticket or tickets are
determined by a combination of two or more winning horses, shall
not exceed seventeen and one-fourth percent of the total of the
pari-mutuel pools for the day. Out of the commission, as is
mentioned in this subdivision, the licensee: (i) Shall pay the
pari-mutuel pools tax provided for in subsection (b), section ten
of this article; (ii) shall make a deposit into a special fund to
be established by the licensee and to be used for the payment of
regular purses offered for thoroughbred racing by the licensee,
which deposits out of pari-mutuel pools for each day during the
months of January, February, March, October, November and December
shall be seven and three hundred seventy-five one-thousandths
percent of the pari-mutuel pools and which, out of pari-mutuel
pools for each day during all other months, shall be six and eight hundred seventy-five one-thousandths percent of the pari-mutuel
pools, which shall take effect beginning fiscal year one thousand
nine hundred ninety; (iii) shall, after allowance for the exclusion
given by subsection (b), section ten of this article, make a
deposit into a special fund to be established by the Racing
Commission and to be used for the payment of breeders, awards and
capital improvements as authorized by section thirteen-b of this
article, which deposits out of pari-mutuel pools shall from the
effective date of this section and for fiscal year one thousand
nine hundred eighty-five, be four-tenths percent; for fiscal year
one thousand nine hundred eighty-six, be seven-tenths percent; for
fiscal year one thousand nine hundred eighty-seven, be one percent;
for fiscal year one thousand nine hundred eighty-eight, be one and
one-half percent; and for fiscal year one thousand nine hundred
eighty-nine, and each year thereafter, be two percent of the pools;
and (iv) shall pay one tenth of one percent of the pari-mutuel
pools into the general fund of the county commission of the county
in which the racetrack is located, except if within a municipality,
then to the municipal general fund. The remainder of the commission
shall be retained by the licensee.
Each licensee that permits or conducts pari-mutuel wagering at
the licensee's thoroughbred horse racetrack shall annually pay five
hundred thousand dollars from the special fund required by this
section to be established by the licensee for the payment of
regular purses offered for thoroughbred racing by the licensee into a special fund established by the Racing Commission for transfer to
a pension plan established by the Racing Commission for all back-
stretch personnel, including, but not limited to, exercise riders,
trainers, grooms and stable forepersons licensed by the Racing
Commission to participate in horse racing in this state and their
dependents.
Each thoroughbred racetrack licensee is authorized to enter
into an agreement with its local Horsemen's Benevolent and
Protective Association under which an agreed upon percentage of up
to two percent of purses actually paid during the preceding month
may be paid to the local Horsemen's Benevolent and Protective
Association from the special fund required by this section for
their respective medical trusts for backstretch personnel and
administrative fees.
The commission deducted by any licensee from the pari-mutuel
pools on thoroughbred horse racing involving what is known as
multiple betting in which the winning pari-mutuel ticket or tickets
are determined by a combination of two winning horses shall not
exceed nineteen percent and by a combination of three or more
winning horses shall not exceed twenty-five percent of the total of
such pari-mutuel pools for the day. Out of the commission, as is
mentioned in this paragraph, the licensee: (i) Shall pay the pari-
mutuel pools tax provided for in subsection (b), section ten of
this article; (ii) shall make a deposit into a special fund to be
established by the licensee and to be used for the payment of regular purses offered for thoroughbred racing by the licensee,
which deposits out of pari-mutuel pools for each day during the
months of January, February, March, October, November and December
for pools involving a combination of two winning horses shall be
eight and twenty-five one-hundredths percent and out of pari-mutuel
pools for each day during all other months shall be seven and
seventy-five one-hundredths percent of the pari-mutuel pools; and
involving a combination of three or more winning horses for the
months of January, February, March, October, November and December
the deposits out of the fund shall be eleven and twenty-five one-
hundredths percent of the pari-mutuel pools; and which, out of
pari-mutuel pools for each day during all other months, shall be
ten and seventy-five one-hundredths percent of the pari-mutuel
pools; (iii) shall, after allowance for the exclusion given by
subsection (b), section ten of this article, make a deposit into a
special fund to be established by the Racing Commission and to be
used for the payment of breeders' awards and capital improvements
as authorized by section thirteen-b of this article, which deposits
out of pari-mutuel pools shall from the effective date of this
section and for fiscal year one thousand nine hundred eighty-five,
be four-tenths percent; for fiscal year one thousand nine hundred
eighty-six, be seven-tenths percent; for fiscal year one thousand
nine hundred eighty-seven, be one percent; for fiscal year one
thousand nine hundred eighty-eight, be one and one-half percent;
and for fiscal year one thousand nine hundred eighty-nine, and each
year thereafter, be two percent of the pools; and (iv) shall pay one tenth of one percent of the pari-mutuel pools into the general
fund of the county commission of the county in which the racetrack
is located, except if within a municipality, then to the municipal
general fund. The remainder of the commission shall be retained by
the licensee.
The commission deducted by the licensee under this subdivision may
be reduced only by mutual agreement between the licensee and a
majority of the trainers and horse owners licensed by subsection
(a), section two of this article or their designated
representative. The reduction in licensee commissions may be for a
particular race, racing day or days or for a horse race meeting.
Fifty percent of the reduction shall be retained by the licensee
from the amounts required to be paid into the special fund
established by the licensee under the provisions of this
subdivision. The Racing Commission shall promulgate any reasonable
rules that are necessary to implement the foregoing provisions.
(2) The commission deducted by any licensee from the pari-
mutuel pools on harness racing shall not exceed seventeen and one-
half percent of the total of the pari-mutuel pools for the day. Out
of the commission the licensee shall pay the pari-mutuel pools tax
provided for in subsection (c), section ten of this article and
shall pay one tenth of one percent into the general fund of the
county commission of the county in which the racetrack is located,
except if within a municipality, then to the municipal general
fund. The remainder of the commission shall be retained by the licensee.
(3) The commission deducted by any licensee from the pari-
mutuel pools on dog racing, except from dog racing pari-mutuel
pools involving what is known as multiple betting in which the
winning pari-mutuel ticket or tickets are determined by a
combination of two or more winning dogs, shall not exceed sixteen
and thirty one-hundredths percent of the total of all pari-mutuel
pools for the day. The commission deducted by any licensee from the
pari-mutuel pools on dog racing involving what is known as multiple
betting in which the winning pari-mutuel ticket or tickets are
determined by a combination of two winning dogs shall not exceed
nineteen percent, by a combination of three winning dogs shall not
exceed twenty percent, and by a combination of four or more winning
dogs shall not exceed twenty-one percent of the total of such pari-
mutuel pools for the day. The foregoing commissions are in effect
for the fiscal years one thousand nine hundred ninety and one
thousand nine hundred ninety-one. Thereafter, the commission shall
be at the percentages in effect prior to the effective date of this
article unless the Legislature, after review, determines otherwise.
Out of the commissions, the licensee shall pay the pari-mutuel
pools tax provided for in subsection (d), section ten of this
article and one tenth of one percent of such pari-mutuel pools into
the general fund of the county commission of the county in which
the racetrack is located. In addition, out of the commissions, if
the racetrack is located within a municipality, then the licensee shall also pay three tenths of one percent of the pari-mutuel pools
into the general fund of the municipality; or, if the racetrack is
located outside of a municipality, then the licensee shall also pay
three tenths of one percent of the pari-mutuel pools into the state
road fund for use by the division of highways in accordance with
the provisions of this subdivision. The remainder of the commission
shall be retained by the licensee.
For the purposes of this section, "municipality" means and
includes any Class I, Class II and Class III city and any Class IV
town or village incorporated as a municipal corporation under the
laws of this state prior to the first day of January, one thousand
nine hundred eighty-seven.
Each dog racing licensee, when required by the provisions of this
subdivision to pay a percentage of its commissions to the state
road fund for use by the division of highways, shall transmit the
required funds, in such manner and at such times as the Racing
Commission shall by procedural rule direct, to the state treasurer
for deposit in the state treasury to the credit of the division of
highways state road fund. All funds collected and received in the
state road fund pursuant to the provisions of this subdivision
shall be used by the division of highways in accordance with the
provisions of article seventeen-a, chapter seventeen of this code
for the acquisition of right-of-way for, the construction of, the
reconstruction of and the improvement or repair of any interstate
or other highway, secondary road, bridge and toll road in the state. If on the first day of July, one thousand nine hundred
eighty-nine, any area encompassing a dog racetrack has incorporated
as a Class I, Class II or Class III city or as a Class IV town or
village, whereas such city, town or village was not incorporated as
such on the first day of January, one thousand nine hundred eighty-
seven, then on and after the first day of July, one thousand nine
hundred eighty-nine, any balances in the state road fund existing
as a result of payments made under the provisions of this
subdivision may be used by the state road fund for any purpose for
which other moneys in the fund may lawfully be used, and in lieu of
further payments to the state road fund, the licensee of a
racetrack which is located in the municipality shall thereafter pay
three tenths of one percent of the pari-mutuel pools into the
general fund of the municipality. If no incorporation occurs before
the first day of July, one thousand nine hundred eighty-nine, then
payments to the state road fund shall thereafter continue as
provided for under the provisions of this subdivision.
A dog racing licensee, before deducting the commissions authorized
by this subdivision, shall give written notification to the Racing
Commission not less than thirty days prior to any change in the
percentage rates for the commissions. The Racing Commission shall
prescribe blank forms for filing the notification. The notification
shall disclose the following: (A) The revised commissions to be
deducted from the pari-mutuel pools each day on win, place and show
betting and on different forms of multiple bettings; (B) the dates to be included in the revised betting; (C) such other information
as may be required by the Racing Commission.
The licensee shall establish a special fund to be used only
for capital improvements or long-term debt amortization or both:
Provided, That any licensee, heretofore licensed for a period of
eight years prior to the effective date of the amendment made to
this section during the regular session of the Legislature held in
the year one thousand nine hundred eighty-seven, shall establish
the special fund to be used only for capital improvements or
physical plant maintenance, or both, at the licensee's licensed
facility or at the licensee's commonly owned racing facility
located within this state. Deposits made into the funds shall be in
an amount equal to twenty-five percent of the increased rate total
over and above the applicable rate in effect as of the first day of
January, one thousand nine hundred eighty-seven, of the pari-mutuel
pools for the day. Any amount deposited into the funds must be
expended or liability therefor incurred within a period of two
years from the date of deposit. Any funds not expended shall be
transferred immediately into the state general fund after
expiration of the two-year period.
The licensee shall make a deposit into a special fund
established by the licensee and used for payment of regular purses
offered for dog racing, which deposits out of the licensee's
commissions for each day shall be three and seventy-five one-
hundredths percent of the pari-mutuel pools.
The licensee shall further establish a special fund to be used
exclusively for marketing and promotion programs; the funds shall
be in an amount equal to five percent over and above the applicable
rates in effect as of the first day of January, one thousand nine
hundred eighty-seven of the total pari-mutuel pools for the day.
The Racing Commission shall prepare and transmit annually to the
Governor and the Legislature a report of the activities of the
Racing Commission under this subdivision. The report shall include
a statement of: The amount of commissions retained by licensees;
the amount of taxes paid to the state; the amounts paid to
municipalities, counties and the division of highways dog racing
fund; the amounts deposited by licensees into special funds for
capital improvements or long-term debt amortization and a certified
statement of the financial condition of any licensee depositing
into the fund; the amounts paid by licensees into special funds and
used for regular purses offered for dog racing; the amounts paid by
licensees into special funds and used for marketing and promotion
programs; and such other information as the Racing Commission may
consider appropriate for review.
(c) In addition to any commission, a licensee of horse race or
dog race meetings shall also be entitled to retain the legitimate
breakage, which shall be made and calculated to the dime, and from
the breakage, the licensee of a horse race meeting (excluding dog
race meetings), shall deposit daily fifty percent of the total of
the breakage retained by the licensee into the special fund created pursuant to the provisions of subdivision (1), subsection (b) of
this section for the payment of regular purses.
(d) The director of audit, and any other auditors employed by
the Racing Commission who are also certified public accountants or
experienced public accountants, shall have free access to the space
or enclosure where the pari-mutuel system of wagering is conducted
or calculated at any horse or dog race meeting for the purpose of
ascertaining whether or not the licensee is deducting and retaining
only a commission as provided in this section and is otherwise
complying with the provisions of this section. They shall also, for
the same purposes only, have full and free access to all records
and papers pertaining to the pari-mutuel system of wagering and
shall report to the Racing Commission in writing, under oath,
whether or not the licensee has deducted and retained any
commission in excess of that permitted under the provisions of this
section or has otherwise failed to comply with the provisions of
this section.
(e) No licensee shall permit or allow any individual under the
age of eighteen years to wager at any horse or dog racetrack,
knowing or having reason to believe that the individual is under
the age of eighteen years.
(f) Notwithstanding the foregoing provisions of subdivision
(1), subsection (b) of this section, to the contrary, a
thoroughbred licensee qualifying for and paying the alternate
reduced tax on pari-mutuel pools provided in section ten of this article shall distribute the commission authorized to be deducted
by subdivision (1), subsection (b) of this section as follows: (i)
The licensee shall pay the alternate reduced tax provided in
section ten of this article; (ii) the licensee shall pay one tenth
of one percent of the pari-mutuel pools into the general fund of
the county commission of the county in which the racetrack is
located, except if within a municipality, then to the municipal
general fund; (iii) the licensee shall pay one half of the
remainder of the commission into the special fund established by
the licensee and to be used for the payment of regular purses
offered for thoroughbred racing by the licensee; and (iv) the
licensee shall retain the amount remaining after making the
payments required in this subsection.
(g) Each kennel which provides or races dogs owned or leased
by others shall furnish to the commission a surety bond in an
amount to be determined by the commission to secure the payment to
the owners or lessees of the dogs the portion of any purse owed to
the owner or lessee.
(h) Before the licensee prepares and publishes what is known
as the condition book, the licensee shall negotiate with the
representatives of the majority of the horse owners and trainers
licensed at the track in establishing the purses and conditions of
the forthcoming meep.
§19-23-12b. Televised racing days; merging of pari-mutuel wagering
pools.
(a) For the purposes of this section:
(1) "Televised racing day" means a calendar day, assigned by
the commission, at a licensed racetrack on which pari-mutuel
betting is conducted on horse or dog races run at other racetracks
in this state or at racetracks outside of this state which are
broadcast by television at a licensed racetrack and which day or
days have had the prior written approval of the representative of
the majority of the owners and trainers who hold permits required
by section two of this article; and
(2) "Host racing association" means any person who, pursuant
to a license or other permission granted by the host governmental
entity, conducts the horse or dog race upon which wagers are
placed.
(b) A licensee conducting not less than two hundred twenty
live racing dates for each horse or dog race meeting may, with the
prior approval of the state Racing Commission, contract with any
legal wagering entity in this state or in any other governmental
jurisdiction to receive telecasts and accept wagers on races
conducted by the legal wagering entity: Provided, That at those
thoroughbred racetracks the licensee, in applying for racing dates,
shall apply for not less than two hundred ten fourty five live
racing dates for each horse race meeting: Provided, however, That
at those thoroughbred racetracks that have participated in the West
Virginia thoroughbred development fund for a period of more than
four consecutive calendar years prior to the thirty-first day of December, one thousand nine hundred ninety-two, the licensee may
apply for not less than one hundred fifty-nine live racing dates
during the calendar year of one thousand nine hundred ninety-seven.
A licensee shall make up all cancellations that are due to adverse
weather conditions in January and February. If, thereafter, for
reasons beyond the licensee's control, related to adverse weather
conditions, unforeseen casualty occurrences or a shortage of
thoroughbred horses eligible to compete for purses, the licensee
concludes that this number of racing days cannot be attained, the
licensee may file a request with the Racing Commission to reduce
the authorized live racing days. Upon receipt of the request the
Racing Commission shall within seventy-two hours of the receipt of
the request notify the licensee and the representative of a
majority of the owners and trainers at the requesting track and the
representative of the majority of the mutuel clerks at the
requesting track that such request has been received and that if no
objection to the request is received within ten days of the
notification the request will be approved: Provided further, That
the commission shall give consideration to whether there existed
available unscheduled potential live racing dates following the
adverse weather or casualty and prior to the end of the race
meeting which could be used as new live racing dates in order to
maintain the full live racing schedule previously approved by the
Racing Commission. If an objection is received by the commission
within the time limits, the commission shall, within thirty days of receipt of such objection, set a hearing on the question of
reducing racing days, which hearing shall be conducted at a
convenient place in the county in which the requesting racetrack is
located. The commission shall hear from all parties concerned and,
based upon testimony and documentary evidence presented at the
hearing, shall determine the required number of live racing days:
And provided further, That the commission shall not reduce the
number of live racing days below one hundred eighty-five days for
a horse race meeting unless the licensee requesting such reduction
has: (i) Filed with the commission a current financial statement,
which shall be subject to independent audit; and (ii) met the
burden of proving that just cause exists for such requested
reduction in live racing days. The telecasts may be received and
wagers accepted at any location authorized by the provisions of
section twelve-a of this article. The contract must receive the
approval of the representative of the majority of the owners and
trainers who hold permits required by section two of this article
at the receiving thoroughbred racetrack.
(c) The commission may allow the licensee to commingle its
wagering pools with the wagering pools of the host racing
association. If the pools are commingled, the wagering at the
licensee's racetrack must be on tabulating equipment capable of
issuing pari-mutuel tickets and be electronically linked with the
equipment at the sending racetrack. Subject to the approval of the
commission, the types of betting, licensee commissions anddistribution of winnings on pari-mutuel pools of the sending
licensee racetrack are those in effect at the licensee racetrack.
Breakage for pari-mutuel pools on a televised racing day must be
calculated in accordance with the law or rules governing the
sending racetrack and must be distributed in a manner agreed to
between the licensee and the sending racetrack. For the televised
racing services it provides, the host racing association shall
receive a fee to be paid by the receiving licensee racetrack which
shall be in an amount to be agreed upon by the receiving licensee
racetrack and the host racing association.
(d) The commission may assign televised racing days at any
time. When a televised racing day is assigned, the commission shall
assign either a steward or an auditor to preside over the televised
races at the licensee racetrack.
(e) (1) From the licensee commissions authorized by subsection
(c) of this section, the licensee shall pay one tenth of one
percent of each commission into the general fund of the county, in
which the racetrack is located and at which the wagering occurred
and there is imposed and the licensee shall pay, for each televised
racing day on which the total pari-mutuel pool exceeds one hundred
thousand dollars, the greater of either: (i) The total of the daily
license tax and the pari-mutuel pools tax required by section ten
of this article; or (ii) a daily license tax of one thousand two
hundred fifty dollars. For each televised racing day on which the
total pari-mutuel pool is one hundred thousand dollars or less,the licensee shall pay a daily license tax of five hundred dollars plus
an additional license tax of one hundred dollars for each ten
thousand dollars, or part thereof, that the pari-mutuel pool
exceeds fifty thousand dollars, but does not exceed one hundred
thousand dollars. The calculation of the total pari-mutuel pool for
purposes of this subsection shall include only one half of all
wagers placed at a licensed racetrack in this state on televised
races conducted at another licensed racetrack within this state.
Payments of the tax imposed by this section are subject to the
requirements of subsection (e), section ten of this article.
(2) From the licensee commissions authorized by subsection (c)
of this section, after payments are made in accordance with the
provisions of subdivision (1) of this subsection, the licensee
shall pay, for each televised racing day, one fourth of one percent
of the total pari-mutuel pools for and on behalf of all employees
of the licensed racing association by making a deposit into a
special fund to be established by the Racing Commission and to be
used for payments into the pension plan for all employees of the
licensed racing association.
(3) From the licensee commissions authorized by subsection (c)
of this section, after payments are made in accordance with the
provisions of subdivisions (1) and (2) of this subsection,
thoroughbred licensees shall pay, one-half percent of net simulcast
income and for each televised racing day on or after the first day
of July, one thousand nine hundred ninety-seven, anadditional five and one-half percent of net simulcast income into the West Virginia
thoroughbred development fund established by the Racing Commission
according to section thirteen-b of this article: Provided, That no
licensee qualifying for the alternate tax provisions of subsection
(b), section ten of this article shall be required to make the
payments unless the licensee has participated in the West Virginia
thoroughbred development fund for a period of more than four
consecutive calendar years prior to the thirty-first day of
December, one thousand nine hundred ninety-two. For the purposes of
this section, the term "net simulcast income" means the total
commission deducted each day by the licensee from the pari-mutuel
pools on simulcast horse or dog races, less direct simulcast
expenses, including, but not limited to, the cost of simulcast
signals, telecommunication costs and decoder costs.
(f) After deducting the tax and other payments required by
subsection (e) of this section, the amount required to be paid
under the terms of the contract with the host racing association
and the cost of transmission, the horse racing association shall
make a deposit equal to fifty percent of the remainder into the
purse fund established under the provisions of subdivision (1),
subsection (b), section nine of this article. After deducting the
tax and other payments required by subsection (e) of this section,
dog racetracks shall pay an amount equal to two tenths of one
percent of the daily simulcast pari-mutuel pool to the "West
Virginia Racing Commission Special Account-West Virginia GreyhoundBreeding Development Fund".
(g) The provisions of the "Federal Interstate Horseracing Act
of 1978", also known as Public Law 95-515, Section 3001-3007 of
Title 15, U.S. Code, as amended, controls in determining the intent
of this section.
NOTE: The purpose of this bill is to amend provisions of
the code involving horse and dog racing as follows: (1)
Increase
the number of members on the Commission to five members; (2)
Require a member of the Commission to be a representative of a
majority of the horsemen at the licensees in the state; (3)
Require a member of the Commission to be a representative of a
majority of the
dog owners at a licensee; (4) Expanding the
arbitration provisions to include any other organized group of
employees at a licensee upon the request of any party; (5)
Requiring the licensee and the representative of a majority of
the horsemen at a licensee to negotiate and agree on the
condition and book structure; (7) Requiring a licensee to apply
for 245 days of racing; and (8) Requiring a licensee to make up
all cancellations in January and February that are due to adverse
weather conditios.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
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