Senate Bill No. 436
(By Senators Yoder, Dugan, By Request)
____________
[Introduced February 20, 1995;
referred to the Committee on the Judiciary;
and then to the Committee on Finance.]
____________
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; simulcast betting and merging of pari-mutuel
wagering pools; 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; and 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 be further amended by adding thereto three new sections,
designated sections twelve-c, twelve-d and twelve-e, all to read as
follows:
ARTICLE 23. HORSE AND DOG RACING.
PART VI. PARI-MUTUEL SYSTEM OF WAGERING AUTHORIZED;
COMMISSIONS DEDUCTED FROM PARI-MUTUEL POOLS.
§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, or by
a licensed agency at the licensed agency's agency facility 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 license
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.
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 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 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; 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 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 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.
§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 races racing 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
procedure set forth in this section. If, thereafter, for reasons
beyond the 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 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 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 license 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; applications;
licensing; penalties.
(a) This section shall be know 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 bill 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 sate and at
agency locations, and to permit telecommunications betting. It is
the further intent of the Legislature through this legislation 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 any and 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 this 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" shall mean any person, firm, partnership, corporation, association or other entity which is
either a licensed racetrack in this state or which has been issued
a license pursuant to article seven, chapter sixty of this code;
and
(5) "Licensed agency" shall mean 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 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 such racetrack notifies the
racing commission in writing that the racetrack elects not to
participate in the pari-mutuel agency program. A racetrack so
electing 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
such electing racetrack: Provided, That the racing commission may
issue agency licenses within thirty air miles of such electing
racetrack upon receipt from such 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 such 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 a 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 and regulations 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; and
(2) 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 wager 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 and
regulations 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 shall 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 shall in any manner place any wager of
telecommunications to a track or agency facility on behalf of a
holder of a telecommunications account. Only the holder of a
telecommunications account shall place a telecommunications bet.
Any person violating this subsection shall be 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 such election.
(a) Notwithstanding any other provision of law to the
contrary, the voters of any county may prohibit the conduct of the
pari-mutuel agency program at agency facilities within said 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 said 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 said county, the county commission for said county
shall order an election to determine whether it is the will of the
voters of said 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 said county.
(b) Any election to determine whether it is the will of the
voters of said county that the conduct of the pari-mutuel agency
program be prohibited in said 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 such election
by publication of such notice as a Class II-O legal advertisement
in accordance with the provisions of article three chapter fifty-
nine of this code. Such notice shall be published within twenty-
one consecutive days next preceding the date of said 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, West Virginia?
? Yes ? No
(Place a cross mark in the square opposite your choice.)"
Each individual qualified to vote in said county shall be
qualified to vote at the local option election. The votes in said 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 the same are applicable. The county
commission shall, without delay, canvass the votes cast at such
local option election and certify the results thereof to the racing
commission, and shall transmit a certified copy of said results to
the secretary of state.
(e) If a majority of the voters voting at such local option
election vote no, another election on such issue shall not be held.
(f) If a majority of the voters voting at such local option
election vote yes, the racing commission shall, after the
certification of the results of such local option election,
thereafter deny any and all applications for an agency license in
said county to conduct the pari-mutuel agency program at an agency
facility other than a racetrack of a racing association license
under section one of this article. After five years from such a
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 article, 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 said county that the pari-mutuel agency
program be permitted at agency facilities in said county. The
provisions of subsections (b) and (c) of this section shall govern
said 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, 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 such
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.
Section 12c, 12d and 12e are new therefore strike-throughs and underscoring have been omitted.