H. B. 2805
(By Delegate Love, By Request)
[Introduced February 24, 1995; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact section twelve-b, article
twenty-three, chapter nineteen of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating
to equal treatment of all thoroughbred racetracks
participating in simulcast wagering in connection with live
Be it enacted by the Legislature of West Virginia:
That section twelve-b, article twenty-three, chapter
nineteen of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
ARTICLE 23. HORSE AND DOG RACING.
§19-23-12b. Televised racing days; merging of pari-mutuel
(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 racetracks
outside of the 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 state,
conducts the horse or dog race subject to the interstate wager.
(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 any other state to receive telecasts
and accept wagers on races conducted by the legal wagering
entity: Provided, That at
those thoroughbred racetracks participating in the West Virginia thoroughbred development fund
authorized by section thirteen-b of this article, the licensee,
in applying for racing dates, shall apply for not less than two
hundred twenty live racing dates for each horse race meeting.
If, thereafter, for reasons beyond the licensees licensee's
control, 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 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.
If an objection is received by the commission within the time
limits, the commission shall establish a binding arbitration
board. The board shall consist of one member appointed by the
licensee, one member appointed by the representative of a
majority of the owners and trainers at the racetrack and a third
member to be selected by the two appointed members. In the event the two members cannot agree on the third member, each member
shall submit two names to the racing commission and from those
names the racing commission shall appoint the third member of the
board. The board shall hear from all parties concerned and
thereupon shall make recommendations to the racing commission on
the required number of live racing days. The recommendations of
the board are final. 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
(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 and
distribution 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.
(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.
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.
(f) After deducting the tax required by subsection (e) of
this section, the amount required to be paid under the terms of
the contract with the legal wagering entity of another state 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.
(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.
(h) On and after the first day of January, one thousand nine
hundred ninety-five, the handle from televised simulcast racing
shall be included in the calculation of "average daily handle" as
it is calculated in section ten of this article to determine the
alternative daily pari-mutuel pool tax.
NOTE: The purpose of this bill is to provide equal
treatment of all thoroughbred racetracks with respect to
requirements for live race days.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.