H. B. 2583
(By Delegates Doyle and Manuel)
[Introduced February 21, 1995; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact sections nine and twelve-b, article
twenty-three, chapter nineteen of the code of West Virginia,
one thousand nine hundred thirty-one, as amended; and to
further amend said article by adding thereto three new
sections, designated sections twelve-c, twelve-d and
twelve-e, all relating to the pari-mutuel system of wagering
authorized and commissions deducted from pari-mutuel pools;
televised racing days; and simulcast betting and
merging of pari-mutuel wagering pools; the establishment of
a pari-mutuel agency program; statement of intent;
definitions; applications; licensing; penalties;
telecommunications betting; local option election procedure;
form of ballot or ballot labels; effect of such election.
Be it enacted by the Legislature of West Virginia:
That sections nine and 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; and
that said article twenty-three be amended by adding thereto three
new sections, designated sections twelve-c, twelve-d and twelve-
e, all to read as follows:
PART VI. PARI-MUTUEL SYSTEM OF WAGERING AUTHORIZED;
COMMISSIONS DEDUCTED FROM PARI-MUTUEL POOLS.
ARTICLE 23. HORSE AND DOG RACING.
§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
the pari-mutuel wagering is conducted by the licensee within the
confines of the licensee's horse racetrack or dog racetrack or by
a licensed agency at its agency's facility and the provisions of
section one, article ten, chapter sixty-one of this code,
relating to gaming, shall may 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 may 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.
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 may not exceed nineteen percent and by a combination of
three or more winning horses shall may not exceed twenty-five percent of the total of such the 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 and regulations that are necessary to implement
the foregoing provisions.
(2) The commission deducted by any licensee from the
pari-mutuel pools on harness racing shall may 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 may 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 may not exceed nineteen percent, by a combination of
three winning dogs shall may not exceed twenty percent, and by a combination of four or more winning dogs shall may not exceed
twenty-one percent of the total of such the 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 the 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 the manner and at such the
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 the 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; and (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.
The racing commission shall report to the governor,
president of the Senate, speaker of the House of Delegates and
the Legislature on or before the thirty-first day of December,
one thousand nine hundred ninety-three, on the effects of the
amendments to this article by the acts of the Legislature,
regular session, one thousand nine hundred eighty-seven, on dog
racing licensees and pari-mutuel taxation for use by the
Legislature in review of the amendments.
(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 may 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.
PART VII. TAXATION OF HORSE AND DOG RACING AND
PARI-MUTUEL WAGERING; DISPOSITION OF REVENUES.
§19-23-12b. Televised racing days; merging of pari-mutuel
wagering pools.
(a) For the purposes of this section article:
(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 racing or dog racing races run at
racetracks inside or 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;
and
(3) "Simulcast" means the telecast of live audio and visual
signals of horse racing or dog racing for the purpose of
pari-mutuel wagering.
(b) A licensee conducting not less than two hundred twenty
live racing dates for each horse or dog race meeting, or such lesser number of live racing dates as may be approved by the
racing commission pursuant to the procedures set forth in this
section, 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 to simulcast
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, or such lesser number of live racing
dates as may be approved by the racing commission pursuant to the
procedures set forth in this section. If, thereafter, for
reasons beyond the licensees 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 simulcast
may be conducted at a racetrack of a racing association licensed
under section one of this article or at an agency facility of a
licensed agency licensed under section nine-c of this article:
Provided, That any simulcast conducted at an agency facility that
is not a racetrack of a racing association licensed under section
one of this article, may be conducted only through a simulcast
received from a racetrack of a racing association licensed under
section one of this article, regardless of the location of the
sending racetrack. 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 racetrack.
(c) The commission may allow the licensee and licensed
agency to commingle its their wagering pools with the wagering
pools of the host racing association. If the pools are
commingled, the wagering at the licensee's racetrack receiving
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.
§19-23-12c. Pari-Mutuel Agency Program; definitions;
application; licensing; penalties.
(a) This section shall be known as the "West Virginia
Pari-Mutuel Agency Program."
(b) The Legislature recognizes the economic importance of
the racing industry in this state and further recognizes that the
West Virginia horse racing industry is in a state of decline.
Therefore, it is the intent of the Legislature through this
program to revitalize and secure the economic future of the horse
racing industry and to encourage statewide economic development by permitting simulcast betting at racetracks in this state and
at agency locations, and to permit telecommunications betting.
It is the further intent of the Legislature through this program
to offer the potential for the creation of jobs, not only in the
racing and wagering industry, but more particularly in other
service jobs, such as parking attendants, waiters and waitresses,
security guards, custodial workers and food service personnel.
(c) The racing commission has jurisdiction over the West
Virginia pari-mutuel agency program to the same extent as when
live racing is held by a licensee under section one of this
article.
(d) For purposes of this article:
(1) "Adjusted wagering" means all money bet at all agency
facilities, less a four percent commission to the agency facility
for wagers on one contestant running in a horse or dog race, and
less a six percent commission to the agency facility for wagers
on two or more contestants running in a horse or dog race.
(2) "Agency facility" means the premises in the state owned
or leased by a licensed agency for purposes of the West Virginia
pari-mutuel agency program;
(3) "Agency license" means the license issued by the racing
commission to an eligible agency pursuant to this section.
(4) "Eligible agency" means any person, firm, partnership,
corporation, association or similar entity which is either a licensed racetrack or consortium of racetracks in this state or
which has been issued a license pursuant to article seven,
chapter sixty of this code; and
(5) "Licensed agency" means any eligible agency which has
been issued an agency license by the racing commission pursuant
to this section.
(e) The West Virginia pari-mutuel agency program shall
consist of:
(1) Pari-mutuel wagering at the agency facility on a race
that is simulcast from a racetrack of a racing association
licensed under section one of this article, regardless of the
location of the sending racetrack, on a horse race or dog race
conducted by a legal wagering entity as defined in section
twelve-a of this article; and
(2) Transmission of the pari-mutuel information regarding
bets at the agency facility to the sending racetrack, and, if
such sending racetrack be an out of state racetrack, to the
racetrack of a racing association licensed under section one of
this article from which the agency facility receives the
simulcast.
(f) A racetrack of a racing association licensed under
section one of this article shall automatically be deemed a
licensed agency for all purposes under this article, unless
within sixty days of the effective date of this section the racetrack notifies the racing commission in writing that the
racetrack elects not to participate in the pari-mutuel agency
program. A racetrack which elects not to participate in the
pari-mutuel agency program may not thereafter seek licensure as
a licensed agency until a period of at least twelve months has
elapsed from the date of election to not participate in the
pari-mutuel agency program. Upon receipt of the written election
of a racetrack to not participate in the pari-mutuel agency
program, the racing commission shall thereafter not issue any
agency license or licenses within thirty air miles of the
electing racetrack: Provided, That the racing commission may
issue agency licenses within thirty air miles of the electing
racetrack upon receipt from the electing racetrack of a written
waiver of this thirty air mile exclusion.
(g) Any eligible agency desiring to obtain an agency license
under this section shall submit to the racing commission an
application therefor on a form prescribed by the racing
commission. The application for an agency license shall be
accompanied by the fee prescribed therefor by the racing
commission.
(h) The racing commission shall conduct a personal and
financial background check of an eligible agency applying for an
agency license, including:
(1) A review, by a certified public accountant, of the certified financial statements of the applicant, including
contingent or pledged liabilities, sufficient to determine the
ability of the applicant to purchase or lease, and develop and
maintain the agency facility;
(2) A statement of financial and related records of any
person in which the eligible agency has at least a majority
interest;
(3) A disclosure of all financial interest in any licensed
agency, racing and any other legalized betting activity;
(4) The disclosure of each person who is a beneficial owner
of the eligible agency; and
(5) With the assistance of federal, state and local law
enforcement authorities, a criminal background review.
The racing commission in its discretion may waive any
portion of the review for any eligible agency that is a licensee
under section one of this article: Provided, That no person,
directly or indirectly, may own any interest in more than one
licensed agency. For purposes of this section, a person shall be
considered as having an ownership interest in a licensed agency
if the person or member of his or her immediate family as defined
in section three, article two, chapter six-b of this code has any
interest as an owner or shareholder of a licensed agency or as a
creditor of a licensed agency exceeding thirty thousand dollars
of the total indebtedness of the licensed agency.
(i) All adjusted wagering shall be included in the
applicable mutuel pools at the sending racetrack.
(j) Except as provided in subsection (h) of this section,
the breakage, state tax and takeout on all simulcast betting
shall be computed in the way normally applicable to pari-mutuel
betting on a race at the sending racetrack as provided in section
twelve-b of this article.
(k) A licensed agency may not lend or give money to a person
for pari-mutuel betting.
(l) The simulcast to licensed agency may be disconnected by
a sending racetrack if the licensed agency:
(1) Fails to deposit money under this section as the same
becomes due; or
(2) Knowingly or willfully submits a report that understates
the amount due.
A licensed agency whose license is revoked under this
subsection may not hold a license for at least one year.
(m) If the racing commission finds that a licensed agency is
not complying with the provisions of this section and the rules
of the racing commission promulgated hereunder, the racing
commission may impose a penalty on the licensed agency similar to
those penalties levied on licensees as provided under sections
twenty-five and twenty-six of this article.
(n) 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.
(o) The racing commission shall adopt regulations to:
(1) Define the criteria for a licensed agency, which may
include a nonrefundable application fee;
(2) Require that notwithstanding any other provision of this
code to the contrary, no entity may be issued an agency license
which has not been a restaurant licensed to do business pursuant
to article twelve, chapter eleven of this code, or a private club
licensed by the West Virginia alcoholic beverage control
commissioner pursuant to article four, chapter sixty of this
code, for at least six months prior to the issuance of the
license; and
(3) Otherwise carry out this article.
§19-23-12d. Telecommunications betting.
(a) For purposes of this section, "telecommunications
betting" means a form of pari-mutuel wagering where an individual
may deposit money in an account at a track or with a licensed
agency and may place a wager by direct communication through
electronic media owned by the holder of the account to the
licensee or to the licensed agency.
(b) Any licensee under section one of this article or
licensed agency under section twelve-c of this article may conduct and operate a telecommunications betting system:
Provided, That all moneys used to place telecommunication wagers
be on deposit in an amount sufficient to cover the wager at the
agency facility where the account is opened. The commission
shall promulgate rules to regulate telecommunications betting.
All adjusted wagering as a result of telecommunication betting
shall be included in an amount wagered each racing day for
purposes of taxation under section ten of this article and shall
be included in the same pari-mutuel pools for each posted race.
All telecommunications betting systems shall be solely operated
by the licensee or licensed agency.
(c) A licensee and licensed agency shall only accept and
tabulate a wager by telecommunications from the holder of the
telecommunications betting account. No person may directly or
indirectly act as an intermediary, transmittal or agent in the
placing of wagers for a holder of a telecommunications betting
account. No person may in any manner place any wager of
telecommunications to a race track or agency facility on behalf
of a holder of a telecommunications account. Only the holder of
a telecommunications account may place a telecommunications bet.
Any person who violates this subsection is guilty of a
misdemeanor.
(d) Telecommunications betting is permitted at any track
where racing is authorized.
(e) The breakage and takeout on all telephone betting shall
be computed in the way normally applicable to pari-mutuel
wagering on racing the licensee holds.
§19-23-12e. Local option election procedure; form of ballot or
ballot labels; effect of election.
(a) Notwithstanding any other provision of this code to the
contrary, the voters of any county may prohibit the conduct of
the pari-mutuel agency program at agency facilities within the
county, other than at a racetrack of a racing association
licensed under section one of this article, in the manner set
forth in this section. Upon presentation of a petition in
writing of qualified voters residing within the county equal to
at least fifteen percent of the number of persons who voted in
that county in the next preceding general election, which
petition may be in any number of counterparts, to order an
election to determine whether it is the will of the voters of the
county that the pari-mutuel agency program at agency facilities
other than a racetrack of a racing association licensed under
section one of this article be prohibited in the county, the
county commission for the county shall order an election to
determine whether it is the will of the voters of the county that
the pari-mutuel agency program at agency facilities other than a
racetrack of a racing association licensed under section one of
this article be prohibited in the county.
(b) Any election to determine whether it is the will of the
voters of the county that the conduct of the pari-mutuel agency
program be prohibited in the county, except at a racetrack of a
racing association licensed under section one of this article,
shall be held at a general or primary election.
(c) The county commission shall give notice of the election
by publication of the notice as a Class II-O legal advertisement
in accordance with the provisions of article three, chapter
fifty-nine of this code. The notice shall be published within
twenty-one consecutive days next preceding the date of the
election.
(d) The ballot, or the ballot labels where voting machines
are used, shall have printed thereon substantially the following:
"Shall pari-mutuel wagering on horse races and dog races at
facilities other than a racetrack of a racing association duly
licensed by the racing commission be prohibited in (county name)
County, West Virginia?
Yes No
(Place a cross mark in the square opposite your choice.)"
Each individual qualified to vote in the county shall be
qualified to vote at the local option election. The votes in the
local option election shall be counted and returns made by the
election officers and the results certified by the commissioners
of election to the county commission, which shall canvass the ballots, all in accordance with the laws of this state relating
to general elections insofar as they are applicable. The county
commission shall, without delay, canvass the votes cast at the
local option election and certify the results thereof to the
racing commission, and shall transmit a certified copy of the
results to the secretary of state.
(e) If a majority of the voters voting at the local option
election vote yes, another election on the issue may not be held.
(f) If a majority of the voters voting at the local option
election vote no, the racing commission shall, after the
certification of the results of the local option election,
thereafter deny any application for an agency license in the
county to conduct the pari-mutuel agency program at an agency
facility other than a racetrack of a racing association licensed
under section one of this section. After five years from such
vote prohibiting the conduct of the pari-mutuel agency program at
agency facilities other than a racetrack of a racing association
licensed under section one of this section, it shall be the duty
of the county commission upon a petition in writing of qualified
voters residing within the county equal to at least fifteen
percent of the number of persons who voted in that county in the
next preceding general election, which petition may be in any
number of counterparts, to order an election to determine whether
it is the will of the voters of the county that the pari-mutuel agency program be permitted at agency facilities in the county.
The provisions of subsections (b) and (c) of this section shall
govern the election. The ballot, or the ballot labels where
voting machines are used, shall have printed thereon
substantially the following:
"Shall pari-mutuel wagering on horse races and dog races at
facilities other than a racetrack duly licensed by the racing
association be permitted in (county name) County, West Virginia?
Yes No
(Place a cross mark in the square opposite your choice.)"
NOTE: The purpose of this bill is to authorize pari-mutuel
wagering in West Virginia at regulated, licensed locations other
than racetracks; to authorize a local option election whereby the
wagering may be prohibited; and to authorize telecommunications
betting on regulated horse races and dog races.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
Sections twelve-c, twelve-d and twelve-e are new; therefore,
strike-throughs and underscoring have been omitted.