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Introduced Version House Bill 2388 History

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hb2388 intr
H. B. 2388


(By Delegate Doyle)

[Introduced February 13, 2009; referred to the

Committee on Government Organization then Finance.]





A BILL to amend and reenact §19-23-3, §19-23-4, §19-23-5, §19-23-6 and §19-23-13b of the Code of West Virginia, 1931, as amended, all relating to the Racing Commission; defining authority of the Racing Commission; providing for five members of the Racing Commission; providing qualifications for members of the Racing Commission; abolishing certain positions within the Racing Commission; creating the position of Director of Racing; and providing authority for the Director of Racing.

Be it enacted by the Legislature of West Virginia:

That §19-23-3, §19-23-4, §19-23-5, §19-23-6 and §19-23-13b of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:

ARTICLE 23. HORSE AND DOG RACING.

§19-23-3. Definitions.

Unless the context in which used clearly requires a different
meaning, as used in this article:
(1) "Horse racing" means any type of horse racing, including, but not limited to, thoroughbred racing and harness racing;

(2) "Thoroughbred racing" means flat or running type horse racing in which each horse participating therein is a thoroughbred and is mounted by a jockey;

(3) "Harness racing" means horse racing in which the horses participating therein are harnessed to a sulky, carriage or other vehicle and shall not include any form of horse racing in which the horses are mounted by jockeys;

(4) "Horse race meeting" means the whole period of time for which a license is required by the provisions of section one of this article;

(5) "Dog racing" means any type of dog racing, including, but not limited to, greyhound racing;

(6) "Purse" means any purse, stake or award for which a horse or dog race is run;

(7) "Racing association" or "person" means any individual, partnership, firm, association, corporation or other entity or organization of whatever character or description;

(8) "Applicant" means any racing association making application for a license under the provisions of this article or any person making application for a permit under the provisions of this article, or any person making application for a construction
permit under the provisions of this article, as the case may be;
(9) "License" means the license required by the provisions of section one of this article;

(10) "Permit" means the permit required by the provisions of section two of this article;

(11) "Construction permit" means the construction permit required by the provisions of section eighteen of this article;

(12) "Licensee" means any racing association holding a license required by the provisions of section one of this article and issued under the provisions of this article;

(13) "Permit holder" means any person holding a permit required by the provisions of section two of this article and issued under the provisions of this article;

(14) "Construction permit holder" means any person holding a construction permit required by the provisions of section eighteen of this article and issued under the provisions of this article;

(15) "Hold or conduct" includes "assist, aid or abet in holding or conducting";

(16) "Racing Commission" means the West Virginia Racing Commission;

(17) "Stewards" means the steward or stewards representing the Racing Commission, the steward or stewards representing a licensee and any other steward or stewards, whose duty it is to supervise any horse or dog race meeting, all as may be provided by reasonable
rules of the Racing Commission, and the reasonable rules shall specify the number of stewards to be appointed, the method and manner of their appointment and their powers, authority and duties;
(18) "Pari-mutuel" means a mutuel or collective pool that can be divided among those who have contributed their wagers to one central agency, the odds to be reckoned in accordance to the collective amounts wagered upon each contestant running in a horse or dog race upon which the pool is made, but the total to be divided among the first three contestants on the basis of the number of wagers on these;

(19) "Pari-mutuel clerk" means any employee of a licensed racing association who is responsible for the collection of wagers, the distribution of moneys for winning pari-mutuel tickets, verification of the validity of pari-mutuel tickets and accounting for pari-mutuel funds;

(20) "Pool" means a combination of interests in a joint wagering enterprise or a stake in such enterprise;

(21) "Legitimate breakage" is the percentage left over in the division of a pool;

(22) "To the dime" means that wagers shall be figured and paid to the dime;

(23) "Code" means the Code of West Virginia, 1931, as heretofore and hereinafter amended;

(24) "Accredited thoroughbred horse" means a thoroughbred
horse that is: (a) Foaled in West Virginia; (b) sired by an accredited West Virginia sire; or (c) as a yearling, finished twelve consecutive months of verifiable residence in the state, except for thirty days grace: (A) For the horse to be shipped to and from horse sales where the horse is officially entered in the sales catalogue of a recognized thoroughbred sales company, or (B) for obtaining veterinary services, documented by veterinary reports;
(25) "Accredited West Virginia sire" is a sire that is permanently domiciled in West Virginia, stands a full season in West Virginia and is registered with West Virginia Thoroughbred Breeders Association;

(26) "Breeder of an accredited West Virginia horse" is the owner of the foal at the time it was born in West Virginia;

(27) "Raiser of an accredited West Virginia horse" is the owner of the yearling at the time it finished twelve consecutive months of verifiable residence in the state. During the period, the raiser will be granted one month of grace for his or her horse to be shipped to and from thoroughbred sales where the horse is officially entered in the sales catalogue of a recognized thoroughbred sales company. In the event the yearling was born in another state and transported to this State, this definition does not apply after December 31, 2007, to any pari-mutuel racing facility located in Jefferson County; nor shall it apply after
December 31, 2012, and thereafter to any pari-mutuel racing facility located in Hancock County. Prior to the horse being shipped out of the state for sales, the raiser must notify the Racing Commission of his or her intentions;
(28) The "owner of an accredited West Virginia sire" is the owner of record at the time the offspring is conceived;

(29) The "owner of an accredited West Virginia horse" means the owner at the time the horse earned designated purses to qualify for restricted purse supplements provided for in section thirteen-b of this article;

(30) "Registered greyhound owner" means an owner of a greyhound that is registered with the National Greyhound Association;

(31) "Fund" means the West Virginia thoroughbred development fund established in section thirteen-b of this article; and

(32) "Regular purse" means both regular purses and stakes purses;

(33) "Director of Racing" or "director" means the individual appointed by the Governor pursuant to section five of this article to provide management and administration necessary to direct the State Racing Office.

§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. One member of the commission shall have at least five years experience in law enforcement and one member of the commission shall have at least five years of experience as an accountant. Not less than one member shall reside in each county or in a county adjacent to a county where a pari-mutuel racetrack that is licensed as of January 1, 2009, is located. 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 2009 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 of this code.
(c) (b) 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 receive the same compensation as is paid to members of the Legislature for their interim duties as recommended by the Citizens Legislative Compensation Commission and authorized by law for each day or portion thereof engaged in the discharge of official duties and each member shall be reimbursed for actual and necessary expenses incurred in the discharge of official duties: Provided, That the per mile rate to be reimbursed shall be the same rate as authorized for members of the Legislature.
(d) (c) The Racing Commission shall have its principal office, the State Racing Office, at the seat of government, and shall meet annually at least quarterly at its principal office in the month of January, and at any other times and places designated by its chairman, chair person, the Director of Racing, or majority of the commission members. At the annual meeting the On July 1 of each year, the Racing Commission shall elect from its membership a chairman chair person 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) (d) 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 of the State Racing Office.
(f) (e) 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.
§19-23-5. Director of Racing and other personnel; qualifications; terms; powers and duties; compensation and expenses.

(a) The Racing Commission shall appoint a racing secretary to represent the Racing Commission and such racing secretary shall possess such powers and authority and perform such duties as the Racing Commission may direct or prescribe. The racing secretary shall preserve at the Racing Commission's principal office all books, maps, records, documents and other papers of the Racing Commission. The racing secretary shall, in addition to all other duties imposed upon him by the Racing Commission, serve in a liaison capacity between licensees and the Racing Commission. The Racing Commission may also employ, direct and define the duties of
an assistant racing secretary and such stenographers, clerks and
other office personnel as it may deem necessary to carry out the duties imposed upon it under the provisions of this article
The statutory offices of the racing secretary, assistant racing secretary, chief clerk, director of security, director of audits, and chief chemist are abolished effective on July 1, 2009.
(b) There is hereby created the position of the Director of Racing whose duties include the management and administration of the State Racing Office. The Director of Racing shall be qualified by training and experience to direct the operations of thoroughbred and dog racing, and shall be appointed, by July 1, 2009, by the Governor and shall serve at the will and pleasure of the Governor. No person may be appointed as Director of Racing who has been convicted of a felony or crime involving moral turpitude.
(c) The director serves on a full-time basis and may not be engaged in any other profession or occupation.
(d) The director:
(1) Shall have a good reputation, particularly as a person of honesty and integrity, and shall favorably pass a thorough background investigation prior to appointment;
(2) The director may not hold political office in the government of the state either by election or appointment while serving as director;
(3) The director shall be a citizen of the United States and must become a resident of the state within ninety days of appointment;
(4) The director shall receive an annual salary as provided by the Governor; and
(b) (e) In addition to the employees referred to above The Racing Commission Director, with the approval of the Racing Commission, shall employ, direct and define the duties of a chief clerk, director of security, director of audit, chief chemist stewards to represent the Racing Commission, supervisors of the pari-mutuel wagering conducted under the provisions of this article, veterinarians, inspectors, accountants, guards and all other employees deemed by the Racing Commission director to be essential in connection with any horse or dog race meeting. The Director of Audit shall be a certified public accountant or experienced public accountant.
(c) (f) No individual shall knowingly be employed or be continued in employment by the Racing Commission in any capacity whatever:
(1) 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;
(2) Who at the time is or has been within one year prior thereto a member of the Legislature or an elective officer of this state, unless he or she is experienced and qualified as a racing official; or
(3) 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. Any steward employed by the Racing Commission or by a licensee shall be a person of integrity, and experienced and qualified for such position by the generally accepted practices and customs of horse or dog racing in the United States.
(d) (g) The racing secretary and all other All employees whose functions are required or needed under the provisions of this article of the Racing Commission shall serve at the will and pleasure of the Racing Commission Director. The racing secretary and the other employees referred to in this section as Employees of the Racing Commission shall receive such compensation as may be fixed by the Racing Commission Director, with the approval of the Racing Commission and within the limit of available funds, and shall be reimbursed for all reasonable and necessary expenses actually incurred in the performance of their official duties.
(e) (h) All compensation and reimbursement for expenses of the members of the Racing Commission the racing secretary and all other employees of the Racing Commission shall be paid from the funds in the hands of the State Treasurer collected under the provisions of this article and shall be itemized in the budget in the same manner as all other departments of state government, but no reimbursement for expenses incurred shall be paid unless an itemized account thereof, under oath, be first filed with the State Auditor.
§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 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 the Director of Racing, 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, 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 contract and be contracted with, plead and be impleaded, sue and have and use a common seal; and
(18) (19) 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 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 may be required to abide by any recommendation made by any mediator acting pursuant to this subsection.
The Racing Commission shall may not interfere in the internal business or internal financial affairs of any licensee.
§19-23-13b. West Virginia Thoroughbred Development Fund; distribution; restricted races; nonrestricted purse supplements; preference for West Virginia accredited thoroughbreds.

(a) The Racing Commission shall deposit moneys required to be withheld by an association or licensee in subsection (b), section nine of this article in a banking institution of its choice in a special account to be known as "West Virginia Racing Commission Special Account -- West Virginia Thoroughbred Development Fund": Provided, That after the West Virginia Lottery Commission has divided moneys between the West Virginia Thoroughbred Development Fund and the West Virginia Greyhound Breeding Development Fund pursuant to the provisions of sections ten and ten-b, article twenty-two-a, chapter twenty-nine of this code, the Racing Commission shall, beginning October 1, 2005, deposit the remaining moneys required to be withheld from an association or licensee designated to the Thoroughbred Development Fund under the provisions of subsection (b), section nine of this article, subdivision (3), subsection (e), section twelve-b of this article, subsection (b), section twelve-c of this article, paragraph (B), subdivision (3), subsection (b), section thirteen-c of this article and sections ten and ten-b, article twenty-two-a, chapter twenty-nine of this code into accounts for each thoroughbred racetrack licensee with a banking institution of its choice with a separate account for each association or licensee. Each separate account shall be a special account to be known as "West Virginia Racing Commission Special Account - West Virginia Thoroughbred Development Fund" and shall name the licensee for which the special account has been established: Provided, however, That the Racing Commission shall deposit all moneys paid into the Thoroughbred Development Fund by a thoroughbred racetrack licensee that did not participate in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992 from the eighth day of July, 2005 until the effective date of the amendment to this section passed during the fourth extraordinary session of the seventy-seventh Legislature shall be paid into the purse fund of that thoroughbred racetrack licensee: Provided further, That the moneys paid into the Thoroughbred Development Fund by a thoroughbred racetrack licensee that did not participate in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992, shall be transferred into that licensee's purse fund until April 1, 2006. Notice of the amount, date and place of the deposits shall be given by the Racing Commission, in writing, to the State Treasurer. The purpose of the funds is to promote better breeding and racing of thoroughbred horses in the state through awards and purses for accredited breeders/raisers, sire owners and thoroughbred race horse owners: And provided further, That five percent of the deposits required to be withheld by an association or licensee in subsection (b), section nine of this article shall be placed in a special revenue account hereby created in the State Treasury called the "Administration and Promotion Account".
(b) The Racing Commission is authorized to expend the moneys deposited in the administration and promotion account at times and in amounts as the commission determines to be necessary for purposes of administering and promoting the thoroughbred development program: Provided, That during any fiscal year in which the commission anticipates spending any money from the account, the Commission shall submit to the executive department during the budget preparation period prior to the Legislature convening before that fiscal year for inclusion in the executive budget document and budget bill the recommended expenditures, as well as requests of appropriations for the purpose of administration and promotion of the program. The commission shall make an annual report to the Legislature on the status of the administration and promotion account, including the previous year's expenditures and projected expenditures for the next year.
(c) The fund or funds and the account or accounts established in subsection (a) of this section shall operate on an annual basis.
(d) Funds in the Thoroughbred Development Fund or funds in the separate accounts for each association or licensee as provided in subsection (a) of this section shall be expended for awards and purses except as otherwise provided in this section. Annually, the first $8,000 shall be available for distribution for a minimum of 14 accredited stakes races at a racetrack which has participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to December 31, 1992. The weights for all accredited stakes races shall be weight for age. One of the stakes races shall be the West Virginia Futurity and the second shall be the Frank Gall Memorial Stakes. For the purpose of participating in the West Virginia Futurity only, all mares, starting with the breeding season beginning February 1 through July 31, 2004, and each successive breeding season thereafter shall be bred back that year to an accredited West Virginia stallion only which is registered with the West Virginia Thoroughbred Breeders Association. The accredited stake races shall be chosen by the committee set forth in subsection (f) of this section.
(e) Awards and purses shall be distributed as follows:
(1) The breeders/raisers of accredited thoroughbred horses that earn a purse at a participating West Virginia meet shall receive a bonus award calculated at the end of the year as a percentage of the fund dedicated to the breeders/raisers, which shall be sixty percent of the fund available for distribution in any one year. The total amount available for the breeders'/raisers' awards shall be distributed according to the ratio of purses earned by an accredited race horse to the total amount earned in the participating races by all accredited race horses for that year as a percentage of the fund dedicated to the breeders/raisers. However, no breeder/raiser may receive from the fund dedicated to breeders'/raisers' awards an amount in excess of the earnings of the accredited horse at West Virginia meets. In addition, should a horse's breeder and raiser qualify for the same award on the same horse, they will each be awarded one half of the proceeds. The bonus referred to in this subdivision may only be paid on the first $1000,000 of any purse and not on any amounts in excess of the first $1,000.
(2) The owner of an accredited West Virginia sire of an accredited thoroughbred horse that earns a purse in any race at a participating West Virginia meet shall receive a bonus award calculated at the end of the year as a percentage of the fund dedicated to sire owners, which shall be fifteen percent of the fund available for distribution in any one year. The total amount available for the sire owners' awards shall be distributed according to the ratio of purses earned by the progeny of accredited West Virginia stallions in the participating races for a particular stallion to the total purses earned by the progeny of all accredited West Virginia stallions in the participating races. However, no sire owner may receive from the fund dedicated to sire owners an amount in excess of twenty-five percent of the accredited earnings for each sire. The bonus referred to in this subdivision shall only be paid on the first $100,000 of any purse and not on any amounts in excess of the first $1,000.
(3) The owner of an accredited thoroughbred horse that earns a purse in any participating race at a West Virginia meet shall receive a restricted purse supplement award calculated at the end of the year, which shall be twenty-five percent of the fund available for distribution in any one year, based on the ratio of the earnings in the races of a particular race horse to the total amount earned by all accredited race horses in the participating races during that year as a percentage of the fund dedicated to purse supplements. However, the owners may not receive from the fund dedicated to purse supplements an amount in excess of thirty-five of the total accredited earnings for each accredited race horse. The bonus referred to in this subdivision shall only be paid on the first $100,000 of any purse and not on any amounts in excess of the first $1,000.
(4) In no event may purses earned at a meet held at a track which did not make a contribution to the Thoroughbred Development Fund out of the daily pool on the day the meet was held qualify or count toward eligibility for an award under this subsection.
(5) Any balance in the breeders/raisers, sire owners and purse supplement funds after yearly distributions shall first be used to fund the races established in subsection (f) of this section. Any amount not so used shall revert into the general account of the Thoroughbred Development Fund for each racing association or licensee for distribution in the next year.
Distribution shall be made on the fifteenth day of each February for the preceding year's achievements.
(f)(1) Each pari-mutuel thoroughbred horse track shall provide at least one restricted race per racing day: Provided, That sufficient horses and funds are available. For purposes of this subsection, there are sufficient horses if there are at least seven single betting interests received for the race: Provided further, however, That, if sufficient horses and funds are available, any thoroughbred horse racetrack whose licensee participated in the Thoroughbred Development Fund for at least four consecutive calendar years prior to December 31, 1992, shall provide two restricted races per racing day, at least one of which may be split at the discretion of the racing secretary. The restricted race required by this section must be included in the first nine races written in the condition book for that racing day.
(2) The restricted races established in this subsection shall be administered by a three-member committee at each track consisting of:
(A) The Racing Secretary Director;
(B) A member appointed by the authorized representative of a majority of the owners and trainers at the thoroughbred track; and
(C) A member appointed by the West Virginia Thoroughbred Breeders Association.
(3) Restricted races shall be funded by each racing association from:
(A) Moneys placed in the general purse fund: Provided, That a thoroughbred horse racetrack which did not participate in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive years prior to December 31, 1992, may fund restricted races in an amount not to exceed $1 million per year.
(B) Moneys as provided in subdivision (5), subsection (e) of this section, which shall be placed in a special fund called the "West Virginia Accredited Race Fund".
(4) The racing schedules, purse amounts and types of races are subject to the approval of the West Virginia Racing Commission.
(5) If less than seventy-five percent of the restricted races required by this subsection fail to receive enough entries to race, the Racing Commission shall, on a quarterly basis, dedicate funds in each fund back to the general purse fund of the racing association or licensee: Provided, That no moneys may be dedicated back to a general purse fund if the dedication would leave less than $250,000 in the fund.
(g) As used in this section, "West Virginia bred-foal" means a horse that was born in the State of West Virginia.
(h) To qualify for the West Virginia Accredited Race Fund, the breeder must qualify under one of the following:
(1) The breeder of the West Virginia bred-foal is a West Virginia resident;
(2) The breeder of the West Virginia bred-foal is not a West Virginia resident, but keeps his or her breeding stock in West Virginia year round; or
(3) The breeder of the West Virginia bred-foal is not a West Virginia resident and does not qualify under subdivision (2) of this subsection, but either the sire of the West Virginia bred-foal is a West Virginia stallion, or the mare is covered only by a West Virginia accredited stallion or stallions before December 31 of the calendar year following the birth of that West Virginia bred-foal.
(i) From July 1, 2004, West Virginia accredited thoroughbred horses have preference for entry in all accredited races at a thoroughbred race track at which the licensee participates in the West Virginia Thoroughbred Development Fund.
(j) Beginning July 1, 2006, any racing association licensed by the Racing Commission to conduct thoroughbred racing and permitting and conducting pari-mutuel wagering under the provisions of this article must have a West Virginia Thoroughbred Racing Breeders Program.
(k) The commission shall, during calendar year 2009, conduct a study of the adequacy of funding provided for the Thoroughbred Development Fund at any thoroughbred racetrack which has not participated in the West Virginia Thoroughbred Development Fund for a period of more than four consecutive calendar years prior to December 31, 1992, and shall report its findings and recommendations to the Joint Committee on Government and Finance on or before December 1, 2009.


NOTE: The purpose of this bill is to expand the membership of the Racing Commission from three to five members and reorganizes the administrative functions of the West Virginia Racing Commission by establishing a State Racing Office and creating the position of Director of Racing. The Director of Racing will be a gubernatorial appointee and will be responsible for the daily management of the authorities and responsibilities of the West Virginia Racing Commission.

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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