ENROLLED
H. B. 4523
(By Delegates Michael, Doyle,
G. White and Foster)
[Passed March 13, 2004; in effect ninety days from passage.]
AN ACT to amend and reenact §19-23-3, §19-23-9, §19-23-10, §19-23-
13 and §19-23-13b of the code of West Virginia, 1931, as
amended, all relating to horse and dog racing generally;
defining certain terms;
allowing a yearling horse to be
shipped from the state to obtain veterinary services without
losing its status as an accredited thoroughbred horse
;
authorizing thoroughbred racetrack licensees to enter into
agreements with local Horsemen's Benevolent and Protective
Association for payment of up to two percent of purses
actually paid for medical trusts for backstretch personnel and
administrative fees; allowing certain racing associations or
licensees qualifying for an alternate tax, when conducting
more than one racing performance a day, to increase the number
of races each performance may have to thirteen, before it must
pay both the daily license tax and the alternative tax;
requiring owners of accredited West Virginia whelped greyhounds to be both bona fide residents of West Virginia and
registered for purposes of receiving funds from the greyhound
breeding development fund; establishing qualifications to be
considered a bona fide resident; establishing qualifications
for considerations as an accredited West Virginia whelped
greyhound; providing breeding requirements for mares
participating in the West Virginia futurity; and increasing
the amount of restricted thoroughbred horse races in certain
circumstances.
Be it enacted by the Legislature of West Virginia:
That §19-23-3, §19-23-9, §19-23-10, §19-23-13 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.
PART VII. TAXATION OF HORSE AND DOG RACING AND PARI-MUTUEL
WAGERING; DISPOSITION OF REVENUES.
§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 and regulations of the racing commission, and the reasonable
rules and regulations 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, one thousand nine
hundred thirty-one, 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. 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; and
(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.
(32) "Regular Purse" means both regular purses and stakes
purses.
§19-23-9. Pari-mutuel system of wagering authorized; licensee
authorized to deduct commissions from pari-mutuel pools;
retention of breakage; auditing; minors.
(a) The pari-mutuel system of wagering upon the results of any
horse or dog race at any horse or dog race meeting conducted or
held by any licensee is hereby authorized, if and only if such
pari-mutuel wagering is conducted by the licensee within the
confines of the licensee's horse racetrack or dog racetrack, and
the provisions of section one, article ten, chapter sixty-one of
this code, relating to gaming shall not apply to the pari-mutuel
system of wagering in manner and form as provided for in this article at any horse or dog race meeting within this state where
horse or dog racing shall be permitted for any purse by any
licensee. A licensee shall permit or conduct only the pari-mutuel
system of wagering within the confines of the licensee's racetrack
at which any horse or dog race meeting is conducted or held.
(b) A licensee is hereby expressly authorized to deduct a
commission from the pari-mutuel pools, as follows:
(1) The commission deducted by any licensee from the pari-
mutuel pools on thoroughbred horse racing, except from thoroughbred
horse racing pari-mutuel pools involving what is known as multiple
betting in which the winning pari-mutuel ticket or tickets are
determined by a combination of two or more winning horses, shall
not exceed seventeen and one-fourth percent of the total of the
pari-mutuel pools for the day. Out of the commission, as is
mentioned in this subdivision, the licensee: (i) Shall pay the
pari-mutuel pools tax provided for in subsection (b), section ten
of this article; (ii) shall make a deposit into a special fund to
be established by the licensee and to be used for the payment of
regular purses offered for thoroughbred racing by the licensee,
which deposits out of pari-mutuel pools for each day during the
months of January, February, March, October, November and December
shall be seven and three hundred seventy-five one-thousandths
percent of the pari-mutuel pools and which, out of pari-mutuel
pools for each day during all other months, shall be six and eight hundred seventy-five one-thousandths percent of the pari-mutuel
pools, which shall take effect beginning fiscal year one thousand
nine hundred ninety; (iii) shall, after allowance for the exclusion
given by subsection (b), section ten of this article, make a
deposit into a special fund to be established by the racing
commission and to be used for the payment of breeders, awards and
capital improvements as authorized by section thirteen-b of this
article, which deposits out of pari-mutuel pools shall from the
effective date of this section and for fiscal year one thousand
nine hundred eighty-five, be four-tenths percent; for fiscal year
one thousand nine hundred eighty-six, be seven-tenths percent; for
fiscal year one thousand nine hundred eighty-seven, be one percent;
for fiscal year one thousand nine hundred eighty-eight, be one and
one-half percent; and for fiscal year one thousand nine hundred
eighty-nine, and each year thereafter, be two percent of the pools;
and (iv) shall pay one tenth of one percent of the pari-mutuel
pools into the general fund of the county commission of the county
in which the racetrack is located, except if within a municipality,
then to the municipal general fund. The remainder of the commission
shall be retained by the licensee.
Each licensee that permits or conducts pari-mutuel wagering at
the licensee's thoroughbred horse racetrack shall annually pay five
hundred thousand dollars from the special fund required by this
section to be established by the licensee for the payment of regular purses offered for thoroughbred racing by the licensee into
a special fund established by the racing commission for transfer to
a pension plan established by the racing commission for all back-
stretch personnel, including, but not limited to, exercise riders,
trainers, grooms and stable forepersons licensed by the racing
commission to participate in horse racing in this state and their
dependents.
Each thoroughbred racetrack licensee is authorized to enter
into an agreement with its local Horsemen's Benevolent and
Protective Association under which an agreed upon percentage of up
to two percent of purses actually paid during the preceding month
may be paid to the local Horsemen's Benevolent and Protective
Association from the special fund required by this section for
their respective medical trusts for backstretch personnel and
administrative fees.
The commission deducted by any licensee from the pari-mutuel
pools on thoroughbred horse racing involving what is known as
multiple betting in which the winning pari-mutuel ticket or tickets
are determined by a combination of two winning horses shall not
exceed nineteen percent and by a combination of three or more
winning horses shall not exceed twenty-five percent of the total of
such pari-mutuel pools for the day. Out of the commission, as is
mentioned in this paragraph, the licensee: (i) Shall pay the pari-
mutuel pools tax provided for in subsection (b), section ten of this article; (ii) shall make a deposit into a special fund to be
established by the licensee and to be used for the payment of
regular purses offered for thoroughbred racing by the licensee,
which deposits out of pari-mutuel pools for each day during the
months of January, February, March, October, November and December
for pools involving a combination of two winning horses shall be
eight and twenty-five one-hundredths percent and out of pari-mutuel
pools for each day during all other months shall be seven and
seventy-five one-hundredths percent of the pari-mutuel pools; and
involving a combination of three or more winning horses for the
months of January, February, March, October, November and December
the deposits out of the fund shall be eleven and twenty-five one-
hundredths percent of the pari-mutuel pools; and which, out of
pari-mutuel pools for each day during all other months, shall be
ten and seventy-five one-hundredths percent of the pari-mutuel
pools; (iii) shall, after allowance for the exclusion given by
subsection (b), section ten of this article, make a deposit into a
special fund to be established by the racing commission and to be
used for the payment of breeders' awards and capital improvements
as authorized by section thirteen-b of this article, which deposits
out of pari-mutuel pools shall from the effective date of this
section and for fiscal year one thousand nine hundred eighty-five,
be four-tenths percent; for fiscal year one thousand nine hundred
eighty-six, be seven-tenths percent; for fiscal year one thousand nine hundred eighty-seven, be one percent; for fiscal year one
thousand nine hundred eighty-eight, be one and one-half percent;
and for fiscal year one thousand nine hundred eighty-nine, and each
year thereafter, be two percent of the pools; and (iv) shall pay
one tenth of one percent of the pari-mutuel pools into the general
fund of the county commission of the county in which the racetrack
is located, except if within a municipality, then to the municipal
general fund. The remainder of the commission shall be retained by
the licensee.
The commission deducted by the licensee under this subdivision
may be reduced only by mutual agreement between the licensee and a
majority of the trainers and horse owners licensed by subsection
(a), section two of this article or their designated
representative. The reduction in licensee commissions may be for a
particular race, racing day or days or for a horse race meeting.
Fifty percent of the reduction shall be retained by the licensee
from the amounts required to be paid into the special fund
established by the licensee under the provisions of this
subdivision. The racing commission shall promulgate any reasonable
rules that are necessary to implement the foregoing provisions.
(2) The commission deducted by any licensee from the pari-
mutuel pools on harness racing shall not exceed seventeen and one-
half percent of the total of the pari-mutuel pools for the day. Out
of the commission the licensee shall pay the pari-mutuel pools tax provided for in subsection (c), section ten of this article and
shall pay one tenth of one percent into the general fund of the
county commission of the county in which the racetrack is located,
except if within a municipality, then to the municipal general
fund. The remainder of the commission shall be retained by the
licensee.
(3) The commission deducted by any licensee from the pari-
mutuel pools on dog racing, except from dog racing pari-mutuel
pools involving what is known as multiple betting in which the
winning pari-mutuel ticket or tickets are determined by a
combination of two or more winning dogs, shall not exceed sixteen
and thirty one-hundredths percent of the total of all pari-mutuel
pools for the day. The commission deducted by any licensee from the
pari-mutuel pools on dog racing involving what is known as multiple
betting in which the winning pari-mutuel ticket or tickets are
determined by a combination of two winning dogs shall not exceed
nineteen percent, by a combination of three winning dogs shall not
exceed twenty percent, and by a combination of four or more winning
dogs shall not exceed twenty-one percent of the total of such pari-
mutuel pools for the day. The foregoing commissions are in effect
for the fiscal years one thousand nine hundred ninety and one
thousand nine hundred ninety-one. Thereafter, the commission shall
be at the percentages in effect prior to the effective date of this
article unless the Legislature, after review, determines otherwise. Out of the commissions, the licensee shall pay the pari-mutuel
pools tax provided for in subsection (d), section ten of this
article and one tenth of one percent of such pari-mutuel pools into
the general fund of the county commission of the county in which
the racetrack is located. In addition, out of the commissions, if
the racetrack is located within a municipality, then the licensee
shall also pay three tenths of one percent of the pari-mutuel pools
into the general fund of the municipality; or, if the racetrack is
located outside of a municipality, then the licensee shall also pay
three tenths of one percent of the pari-mutuel pools into the state
road fund for use by the division of highways in accordance with
the provisions of this subdivision. The remainder of the commission
shall be retained by the licensee.
For the purposes of this section, "municipality" means and
includes any Class I, Class II and Class III city and any Class IV
town or village incorporated as a municipal corporation under the
laws of this state prior to the first day of January, one thousand
nine hundred eighty-seven.
Each dog racing licensee, when required by the provisions of
this subdivision to pay a percentage of its commissions to the
state road fund for use by the division of highways, shall transmit
the required funds, in such manner and at such times as the racing
commission shall by procedural rule direct, to the state treasurer
for deposit in the state treasury to the credit of the division of highways state road fund. All funds collected and received in the
state road fund pursuant to the provisions of this subdivision
shall be used by the division of highways in accordance with the
provisions of article seventeen-a, chapter seventeen of this code
for the acquisition of right-of-way for, the construction of, the
reconstruction of and the improvement or repair of any interstate
or other highway, secondary road, bridge and toll road in the
state. If on the first day of July, one thousand nine hundred
eighty-nine, any area encompassing a dog racetrack has incorporated
as a Class I, Class II or Class III city or as a Class IV town or
village, whereas such city, town or village was not incorporated as
such on the first day of January, one thousand nine hundred eighty-
seven, then on and after the first day of July, one thousand nine
hundred eighty-nine, any balances in the state road fund existing
as a result of payments made under the provisions of this
subdivision may be used by the state road fund for any purpose for
which other moneys in the fund may lawfully be used, and in lieu of
further payments to the state road fund, the licensee of a
racetrack which is located in the municipality shall thereafter pay
three tenths of one percent of the pari-mutuel pools into the
general fund of the municipality. If no incorporation occurs before
the first day of July, one thousand nine hundred eighty-nine, then
payments to the state road fund shall thereafter continue as
provided for under the provisions of this subdivision.
A dog racing licensee, before deducting the commissions
authorized by this subdivision, shall give written notification to
the racing commission not less than thirty days prior to any change
in the percentage rates for the commissions. The racing commission
shall prescribe blank forms for filing the notification. The
notification shall disclose the following: (A) The revised
commissions to be deducted from the pari-mutuel pools each day on
win, place and show betting and on different forms of multiple
bettings; (B) the dates to be included in the revised betting; (C)
such other information as may be required by the racing commission.
The licensee shall establish a special fund to be used only
for capital improvements or long-term debt amortization or both:
Provided, That any licensee, heretofore licensed for a period of
eight years prior to the effective date of the amendment made to
this section during the regular session of the Legislature held in
the year one thousand nine hundred eighty-seven, shall establish
the special fund to be used only for capital improvements or
physical plant maintenance, or both, at the licensee's licensed
facility or at the licensee's commonly owned racing facility
located within this state. Deposits made into the funds shall be in
an amount equal to twenty-five percent of the increased rate total
over and above the applicable rate in effect as of the first day of
January, one thousand nine hundred eighty-seven, of the pari-mutuel
pools for the day. Any amount deposited into the funds must be expended or liability therefor incurred within a period of two
years from the date of deposit. Any funds not expended shall be
transferred immediately into the state general fund after
expiration of the two-year period.
The licensee shall make a deposit into a special fund
established by the licensee and used for payment of regular purses
offered for dog racing, which deposits out of the licensee's
commissions for each day shall be three and seventy-five one-
hundredths percent of the pari-mutuel pools.
The licensee shall further establish a special fund to be
used exclusively for marketing and promotion programs; the funds
shall be in an amount equal to five percent over and above the
applicable rates in effect as of the first day of January, one
thousand nine hundred eighty-seven of the total pari-mutuel pools
for the day.
The racing commission shall prepare and transmit annually to
the governor and the Legislature a report of the activities of the
racing commission under this subdivision. The report shall include
a statement of: The amount of commissions retained by licensees;
the amount of taxes paid to the state; the amounts paid to
municipalities, counties and the division of highways dog racing
fund; the amounts deposited by licensees into special funds for
capital improvements or long-term debt amortization and a certified
statement of the financial condition of any licensee depositing into the fund; the amounts paid by licensees into special funds and
used for regular purses offered for dog racing; the amounts paid by
licensees into special funds and used for marketing and promotion
programs; and such other information as the racing commission may
consider appropriate for review.
(c) In addition to any commission, a licensee of horse race or
dog race meetings shall also be entitled to retain the legitimate
breakage, which shall be made and calculated to the dime, and from
the breakage, the licensee of a horse race meeting (excluding dog
race meetings), shall deposit daily fifty percent of the total of
the breakage retained by the licensee into the special fund created
pursuant to the provisions of subdivision (1), subsection (b) of
this section for the payment of regular purses.
(d) The director of audit, and any other auditors employed by
the racing commission who are also certified public accountants or
experienced public accountants, shall have free access to the space
or enclosure where the pari-mutuel system of wagering is conducted
or calculated at any horse or dog race meeting for the purpose of
ascertaining whether or not the licensee is deducting and retaining
only a commission as provided in this section and is otherwise
complying with the provisions of this section. They shall also, for
the same purposes only, have full and free access to all records
and papers pertaining to the pari-mutuel system of wagering and
shall report to the racing commission in writing, under oath, whether or not the licensee has deducted and retained any
commission in excess of that permitted under the provisions of this
section or has otherwise failed to comply with the provisions of
this section.
(e) No licensee shall permit or allow any individual under the
age of eighteen years to wager at any horse or dog racetrack,
knowing or having reason to believe that the individual is under
the age of eighteen years.
(f) Notwithstanding the foregoing provisions of subdivision
(1), subsection (b) of this section, to the contrary, a
thoroughbred licensee qualifying for and paying the alternate
reduced tax on pari-mutuel pools provided in section ten of this
article shall distribute the commission authorized to be deducted
by subdivision (1), subsection (b) of this section as follows: (i)
The licensee shall pay the alternate reduced tax provided in
section ten of this article; (ii) the licensee shall pay one tenth
of one percent of the pari-mutuel pools into the general fund of
the county commission of the county in which the racetrack is
located, except if within a municipality, then to the municipal
general fund; (iii) the licensee shall pay one half of the
remainder of the commission into the special fund established by
the licensee and to be used for the payment of regular purses
offered for thoroughbred racing by the licensee; and (iv) the
licensee shall retain the amount remaining after making the payments required in this subsection.
(g) Each kennel which provides or races dogs owned or leased
by others shall furnish to the commission a surety bond in an
amount to be determined by the commission to secure the payment to
the owners or lessees of the dogs the portion of any purse owed to
the owner or lessee.
§19-23-10. Daily license tax; pari-mutuel pools tax; how taxes
paid; alternate tax; credits.
(a) Any racing association conducting thoroughbred racing at
any horse racetrack in this state shall pay each day upon which
horse races are run a daily license tax of two hundred fifty
dollars. Any racing association conducting harness racing at any
horse racetrack in this state shall pay each day upon which horse
races are run a daily license tax of one hundred fifty dollars.
Any racing association conducting dog races shall pay each day upon
which dog races are run a daily license tax of one hundred fifty
dollars. In the event thoroughbred racing, harness racing, dog
racing, or any combination of the foregoing are conducted on the
same day at the same racetrack by the same racing association, only
one daily license tax in the amount of two hundred fifty dollars
shall be paid for that day. Any daily license tax shall not apply
to any local, county or state fair, horse show or agricultural or
livestock exposition at which horse racing is conducted for not more than six days.
(b) 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 shall, in
addition to the daily license tax set forth in subsection (a) of
this section, pay to the racing commission, from the commission
deducted each day by the licensee from the pari-mutuel pools on
thoroughbred racing a tax calculated on the total daily
contribution of all pari-mutuel pools conducted or made at any and
every thoroughbred race meeting of the licensee licensed under the
provisions of this article. The tax, on the pari-mutuel pools
conducted or made each day during the months of January, February,
March, October, November and December, shall from the effective
date of this section and for fiscal year one thousand nine hundred
eighty-five be calculated at two and six-tenths percent; for fiscal
year one thousand nine hundred eighty-six, be calculated at two and
three-tenths percent; for fiscal year one thousand nine hundred
eighty-seven, be calculated at two percent of the pool; for fiscal
year one thousand nine hundred eighty-eight, be calculated at one
and one-half percent; for fiscal year one thousand nine hundred
eighty-nine, be calculated at one percent of the pool; for fiscal
year one thousand nine hundred ninety, seven tenths of one percent,
and for fiscal year one thousand nine hundred ninety-one and each
fiscal year thereafter be calculated at four tenths of one percent of the pool; and, on the pari-mutuel pools conducted or made each
day during all other months, shall from the effective date of this
section and for fiscal year one thousand nine hundred eighty-five,
be calculated at three and six-tenths percent; for fiscal year one
thousand nine hundred eighty-six, be calculated at three and
three-tenths percent; for fiscal year one thousand nine hundred
eighty-seven, be calculated at three percent of the pool; for
fiscal year one thousand nine hundred eighty-eight, be calculated
at two and one-half percent; for fiscal year one thousand nine
hundred eighty-nine, be calculated at two percent of the pool; for
fiscal year one thousand nine hundred ninety, be calculated at one
and seven-tenths percent of the pool; and for fiscal year one
thousand nine hundred ninety-one and each fiscal year thereafter,
be calculated at one and four-tenths percent of the pool:
Provided, That out of the amount realized from the three tenths of
one percent decrease in the tax effective for fiscal year one
thousand nine hundred ninety-one and thereafter, which decrease
correspondingly increases the amount of commission retained by the
licensee, the licensee shall annually expend or dedicate: (i) One
half of the realized amount for capital improvements in its barn
area at the track, subject to the racing commission's prior
approval of the plans for the improvements; and (ii) the remaining
one half of the realized amount for capital improvements as the
licensee may determine appropriate at the track. The term "capital improvement" shall be as defined by the Internal Revenue Code:
Provided, however, That any racing association operating a horse
racetrack in this state having an average daily pari-mutuel pool on
horse racing of two hundred eighty thousand dollars or less per day
for the race meetings of the preceding calendar year shall, in lieu
of payment of the pari-mutuel pool tax, calculated as in this
subsection, be permitted to conduct pari-mutuel wagering at the
horse racetrack on the basis of a daily pari-mutuel pool tax fixed
as follows: On the daily pari-mutuel pool not exceeding three
hundred thousand dollars the daily pari-mutuel pool tax shall be
one thousand dollars plus the otherwise applicable percentage rate
imposed by this subsection of the daily pari-mutuel pool, if any,
in excess of three hundred thousand dollars: Provided further,
That upon the effective date of the reduction of the daily
pari-mutuel pool tax to one thousand dollars from the former two
thousand dollars, the association or licensee shall daily deposit
five hundred dollars into the special fund for regular purses
established by subdivision (1), subsection (b), section nine of
this article: And provided further, That if an association or
licensee qualifying for the foregoing alternate tax conducts more
than one racing performance, each consisting of up to thirteen
races in a calendar day, the association or licensee shall pay both
the daily license tax imposed in subsection (a) of this section and
the alternate tax in this subsection for each performance: And provided further, That a licensee qualifying for the foregoing
alternate tax is excluded from participation in the fund
established by section thirteen-b of this article: And provided
further, That this exclusion shall not apply to any thoroughbred
racetrack at which the licensee has participated in the West
Virginia thoroughbred development fund for more than four
consecutive years prior to the thirty-first day of December, one
thousand nine hundred ninety-two.
(c) Any racing association licensed by the racing commission
to conduct harness racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition to
the daily license tax required under subsection (a) of this
section, pay to the racing commission, from the commission deducted
each day by the licensee from the pari-mutuel pools on harness
racing, as a tax, three percent of the first one hundred thousand
dollars wagered, or any part thereof; four percent of the next one
hundred fifty thousand dollars; and five and three-fourths percent
of all over that amount wagered each day in all pari-mutuel pools
conducted or made at any and every harness race meeting of the
licensee licensed under the provisions of this article.
(d) Any racing association licensed by the racing commission
to conduct dog racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition to
the daily license tax required under subsection (a) of this section, pay to the racing commission, from the commission deducted
each day by the licensee from the pari-mutuel pools on dog racing,
as a tax, four percent of the first fifty thousand dollars or any
part thereof of the pari-mutuel pools, five percent of the next
fifty thousand dollars of the pari-mutuel pools, six percent of the
next one hundred thousand dollars of the pari-mutuel pools, seven
percent of the next one hundred fifty thousand dollars of the
pari-mutuel pools, and eight percent of all over three hundred
fifty thousand dollars wagered each day: Provided, That the
licensee shall deduct daily from the pari-mutuel tax an amount
equal to one tenth of one percent of the daily pari-mutuel pools in
dog racing in fiscal year one thousand nine hundred ninety; fifteen
hundredths of one percent in fiscal year one thousand nine hundred
ninety-one; two tenths of one percent in fiscal year one thousand
nine hundred ninety-two; one quarter of one percent in fiscal year
one thousand nine hundred ninety-three; and three tenths of one
percent in fiscal year one thousand nine hundred ninety-four and
every fiscal year thereafter. The amounts deducted shall be paid
to the racing commission to be deposited by the racing commission
in a banking institution of its choice in a special account to be
known as "West Virginia Racing Commission-Special Account-West
Virginia Greyhound Breeding Development Fund". The purpose of the
fund is to promote better breeding and racing of greyhounds in the
state through awards and purses to bona fide resident registered greyhound owners of accredited West Virginia whelped greyhounds.
In order to be eligible to receive an award or purse through the
fund, the registered greyhound owner of the accredited West
Virginia whelped greyhound must be a bona fide resident of this
state.
To qualify as a bona fide resident of West Virginia, a
registered greyhound owner may not claim residency in any other
state. A registered greyhound owner must prove bona fide residency
by providing to the commission personal income tax returns filed in
the state of West Virginia for the most recent tax year and the
three previous tax years, has real or personal property in this
state on which the owner has paid real or personal property taxes
during the most recent tax year and the previous three tax years
and an affidavit stating that the owner claims no other state of
residency. The racing commission and the West Virginia registered
greyhound owners and breeders association shall maintain a registry
for West Virginia bred greyhounds. The moneys shall be expended by
the racing commission for purses for stake races, supplemental
purse awards, administration, promotion and educational programs
involving West Virginia whelped dogs, owned by residents of this
state under rules promulgated by the racing commission. The racing
commission shall pay out of the greyhound breeding development fund
to each of the licensed dog racing tracks the sum of seventy-five
thousand dollars for the fiscal year ending the thirtieth day of
June, one thousand nine hundred ninety-four. The licensee shall deposit the sum into the special fund for regular purses
established under the provisions of section nine of this article.
The funds shall be expended solely for the purpose of supplementing
regular purses under rules promulgated by the racing commission.
Supplemental purse awards will be distributed as follows:
Supplemental purses shall be paid directly to the registered
greyhound owner of an accredited greyhound.
The registered greyhound owner of accredited West Virginia
whelped greyhounds that earn a purse at any West Virginia meet will
receive a bonus award calculated at the end of each month as a
percentage of the fund dedicated to the owners as purse
supplements, which shall be a minimum of fifty percent of the total
moneys deposited into the West Virginia greyhound breeding
development fund monthly.
The total amount of the fund available for the owners' awards
shall be distributed according to the ratio of purses earned by an
accredited greyhound to the total amount earned in races by all
accredited West Virginia whelped greyhounds for that month as a
percentage of the funds dedicated to the owners' purse supplements.
The registered greyhound owner of an accredited West Virginia
whelped greyhound shall file a purse distribution form with the
racing commission for a percentage of his or her dog's earnings to
be paid directly to the registered greyhound owner or owners of the greyhound. Distribution shall be made on the fifteenth day of each
month for the preceding month's achievements.
In no event shall purses earned at a meet held at a track
which did not make contributions to the West Virginia greyhound
breeder's development fund out of the daily pool on the day the
meet was held qualify or count toward eligibility for supplemental
purse awards.
Any balance in the purse supplement funds after all
distributions have been made for the year revert to the general
account of the fund for distribution in the following year.
In an effort to further promote the breeding of quality West
Virginia whelped greyhounds, a bonus purse supplement shall be
established in the amount of fifty thousand dollars per annum, to
be paid in equal quarterly installments of twelve thousand five
hundred dollars per quarter using the same method to calculate and
distribute these funds as the regular supplemental purse awards.
This bonus purse supplement is for three years only, commencing on
the first day of July, one thousand nine hundred ninety-three, and
ending the thirtieth day of June, one thousand nine hundred
ninety-six. This money would come from the current existing
balance in the greyhound development fund.
Each pari-mutuel greyhound track shall provide stakes races
for accredited West Virginia whelped greyhounds: Provided, That each pari-mutuel track shall have one juvenile and one open stake
race annually. The racing commission shall oversee and approve
racing schedules and purse amounts.
Ten percent of the deposits into the greyhound breeding
development fund beginning the first day of July, one thousand nine
hundred ninety-three and continuing each year thereafter, shall be
withheld by the racing commission and placed in a special revenue
account hereby created in the state treasury called the
"administration, promotion and educational account". The racing
commission is authorized to expend the moneys deposited in the
administration, promotion and educational account at such times and
in such amounts as the commission determines to be necessary for
purposes of administering and promoting the greyhound development
program: Provided, That beginning with fiscal year one thousand
nine hundred ninety-five and in each fiscal year thereafter 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, promotion and education. The commission shall make
an annual report to the Legislature on the status of the
administration, promotion and education account, including the previous year's expenditures and projected expenditures for the
next year.
The racing commission, for the fiscal year one thousand nine
hundred ninety-four only, may expend up to thirty-five thousand
dollars from the West Virginia greyhound breeding development fund
to accomplish the purposes of this section without strictly
following the requirements in the previous paragraph.
(e) All daily license and pari-mutuel pools tax payments
required under the provisions of this section shall be made to the
racing commission or its agent after the last race of each day of
each horse or dog race meeting, and the pari-mutuel pools tax
payments shall be made from all contributions to all pari-mutuel
pools to each and every race of the day.
(f) Every association or licensee subject to the provisions of
this article, including the changed provisions of sections nine and
ten of this article, shall annually submit to the racing commission
and the Legislature financial statements, including a balance
sheet, income statement, statement of change in financial position
and an audit of any electronic data system used for pari-mutuel
tickets and betting, prepared in accordance with generally accepted
auditing standards, as certified by an experienced public
accountant or a certified public accountant.
§19-23-13. Disposition of funds for payment of outstanding and
unredeemed pari-mutuel tickets; publication of
notice; irredeemable tickets; stake races for dog
tracks.
(a) All moneys held by any licensee for the payment of
outstanding and unredeemed pari-mutuel tickets, if not claimed
within ninety days after the close of a horse or dog race meeting
or the televised racing day, as the case may be, in connection with
which the tickets were issued, shall be turned over by the licensee
to the racing commission within fifteen days after the expiration
of the ninety-day period, and the licensee shall give any
information required by the racing commission concerning the
outstanding and unredeemed tickets. The moneys shall be deposited
by the racing commission in a banking institution of its choice in
a special account to be known as "West Virginia Racing Commission
Special Account - Unredeemed Pari-Mutuel Tickets." Notice of the
amount, date and place of each deposit shall be given by the racing
commission, in writing, to the state treasurer. The racing
commission shall then cause to be published a notice to the holders
of the outstanding and unredeemed pari-mutuel tickets, notifying
them to present their unredeemed tickets for payment at the
principal office of the racing commission within ninety days from
the date of the publication of the notice. The notice shall be
published within fifteen days following the receipt of the
outstanding and unredeemed pari-mutuel ticket moneys by the commission from the licensee as a Class I legal advertisement in
compliance with the provisions of article three, chapter fifty-nine
of this code, and the publication area for the publication shall be
the county in which the horse or dog race meeting was held and the
county in which the televised racing day wagering was conducted in
this state.
(b) Any outstanding and unredeemed pari-mutuel tickets that
are not presented for payment within ninety days from the date of
the publication of the notice are thereafter irredeemable, and the
moneys theretofore held for the redemption of the pari-mutuel
tickets shall become the property of the racing commission and
shall be expended as provided in this subsection. The racing
commission shall maintain separate accounts for each licensee and
shall record in each separate account the moneys turned over by the
licensee and the amount expended at the licensee's track for the
purposes set forth in this subsection. The moneys in the West
Virginia racing commission special account - unredeemed pari-mutuel
tickets shall be expended as follows:
(1) To the owner of the winning horse in any horse race at a
horse race meeting held or conducted by any licensee: Provided,
That the owner of the horse is at the time of the horse race a bona
fide resident of this state, a sum equal to ten percent of the
purse won by the horse at that race:
Provided, however, That in
the event there are more than ten races in any performance, the award to the resident owner of the winning horse will be that
fractional share of the purse with a numerator of one and a
denominator representing the number of races on the day of the
performance.
The commission may require proof that the owner was,
at the time of the race, a bona fide resident of this state. Upon
proof by the owner that he or she filed a personal income tax
return in this state for the previous two years and that he or she
owned real or personal property in this state and paid taxes in
this state on real or personal property for the previous two years,
he or she shall be presumed to be a bona fide resident of this
state; and
(2) To the breeder (that is, the owner of the mare) of the
winning horse in any horse race at a horse race meeting held or
conducted by any licensee: Provided, That the mare foaled in this
state, a sum equal to ten percent of the purse won by the horse:
Provided, however, That in the event there are more than ten races
in any performance, the award to the breeder will be that
fractional share of the purse with a numerator of one and a
denominator representing the number of races on the day of the
performance; and
(3) To the owner of the stallion which sired the winning horse
in any horse race at a horse race meeting held or conducted by any
licensee: Provided, That the mare which foaled the winning horse
was served by a stallion standing and registered in this state, a sum equal to ten percent of the purse won by the horse:
Provided,
however, That in the event there are more than ten races in any
performance, the award to the owner of the stallion will be
percentage of the purse based upon the fractional share represented
by the number of races on the day of the performance; and
(4) To those horse racing licensees not participating in the
thoroughbred development fund authorized in section thirteen-b of
this article, the unexpended balance of the licensee's account not
expended as provided in subdivisions (1), (2) and (3) of this
subsection: Provided, That all moneys distributed under this
subdivision shall be expended solely for capital improvements at
the licensee's track: Provided, however, That the capital
improvements must be approved, in writing, by the West Virginia
racing commission before funds are expended by the licensee for
that capital improvement; and
(5) When the moneys in the special account, known as the West
Virginia racing commission special account - unredeemed pari-mutuel
tickets will more than satisfy the requirements of subdivisions
(1), (2), (3) and (4) of this subsection, the West Virginia racing
commission shall have the authority to expend the excess moneys
from unredeemed horse racing pari-mutuel tickets as purse money in
any race conditioned exclusively for West Virginia bred or sired
horses, and to expend the excess moneys from unredeemed dog racing
pari-mutuel tickets in supplementing purses and establishing stake races and dog racing handicaps at the dog tracks: Provided, That
subject to the availability of funds, the commission shall, after
the requirements of subdivisions (1), (2), (3) and (4) of this
subsection have been satisfied:
(A) Transfer annually two hundred thousand dollars to the West
Virginia racing commission special account - West Virginia
greyhound breeding development fund;
(B) Transfer annually two hundred thousand dollars into a
separate account to be used for stakes races for West Virginia bred
greyhounds at dog racetracks; and
(C) Transfer annually two hundred thousand dollars to a trust
maintained and administered by the organization which is recognized
by the West Virginia racing commission, pursuant to a legislative
rule proposed for promulgation by the commission and authorized by
the Legislature, as the representative of the majority of the
active jockeys in West Virginia, for the purpose of providing
health and disability benefits to eligible active or disabled West
Virginia jockeys and their dependents in accordance with
eligibility criteria established by said organization. For purposes
of this section in determining health benefits, an eligible active
jockey is one who rides at least one hundred mounts per calendar
year of which fifty-one must be in the state of West Virginia:
Provided, That a jockey is not eligible for health benefits if he
or she receives health benefits from any other state; and
(D) After all payments to satisfy the requirements of (A), (B)
and (C) of this proviso have been satisfied, the commission shall
have authority to transfer one hundred fifty thousand dollars left
from all uncashed pari-mutuel tickets to the trust maintained and
administered by the organization which is recognized by the West
Virginia racing commission, pursuant to legislative rule proposed
for promulgation by the commission and authorized by the
Legislature as the representative of the majority of the active
jockeys in West Virginia.
(c) The commission shall submit to the legislative auditor a
quarterly report and accounting of the income, expenditures and
unobligated balance in the special account created by this section
known as the West Virginia racing commission special account -
unredeemed pari-mutuel tickets.
(d) Nothing contained in this article shall prohibit one
person from qualifying for all or more than one of the aforesaid
awards or for awards under section thirteen-b of this article.
(e) The cost of publication of the notice provided for in this
section shall be paid from the funds in the hands of the state
treasurer collected from the pari-mutuel pools' tax provided for in
section ten of this article, when not otherwise provided in the
budget; but no such costs shall be paid unless an itemized account
thereof, under oath, be first filed with the state auditor.
(f) The racing commission is authorized to promulgate
emergency rules, prior to the first day of July, two thousand four,
to incorporate the revisions to this article enacted during the two
thousand four regular legislative session.
§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."
Notice of the amount, date and place of the deposit shall be given
by the racing commission, in writing, to the state treasurer. The
purpose of the fund 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. A further objective of the fund is to aid in the
rejuvenation and development of the present horse tracks now
operating in West Virginia for capital improvements, operations or
increased purses: Provided, 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 and the account established in subsection (a) of
this section shall operate on an annual basis.
(d) Funds in the thoroughbred development fund shall be
expended for awards and purses except as otherwise provided in this
section. Annually, the first three hundred thousand dollars of the
fund shall be available for distribution for stakes races. 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 the first day of
February through the thirty-first day of July, two thousand four,
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 remaining races may be chosen by the committee
set forth in subsection (g) 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 any 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 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 (1) may only be paid on the first one hundred thousand
dollars of any purse, and not on any amounts in excess of the first
one hundred thousand dollars.
(2) The owner of a West Virginia sire of an accredited
thoroughbred horse that earns a purse in any race at a 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 races for a particular stallion to the total purses earned
by the progeny of all accredited West Virginia stallions in the
races. However, no sire owner may receive from the fund dedicated
to sire owners an amount in excess of thirty-five percent of the
accredited earnings for each sire. The bonus referred to in this
subdivision (2) shall only be paid on the first one hundred
thousand dollars of any purse, and not on any amounts in excess of
the first one hundred thousand dollars.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any 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 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 percent of the total
accredited earnings for each accredited race horse. The bonus
referred to in this subdivision shall only be paid on the first one
hundred thousand dollars of any purse, and not on any amounts in
excess of the first one hundred thousand dollars.
(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 (g) of this section. Any
amount not so used shall revert back into the general account of
the thoroughbred development fund for distribution in the next
year.
Distribution shall be made on the fifteenth day of each
February for the preceding year's achievements.
(f) The remainder, if any, of the thoroughbred development
fund that is not available for distribution in the program provided
for in subsection (e) of this section in any one year is reserved
for regular purses, marketing expenses and for capital improvements
in the amounts and under the conditions provided in this subsection
(f).
(1) Fifty percent of the remainder shall be reserved for
payments into the regular purse fund established in subsection (b),
section nine of this article.
(2) Up to five hundred thousand dollars per year shall be
available for:
(A) Capital improvements at the eligible licensed horse racing
tracks in the state; and
(B) Marketing and advertising programs above and beyond two
hundred fifty thousand dollars for the eligible licensed horse
racing tracks in the state: Provided, That moneys shall be
expended for capital improvements or marketing and advertising
purposes as described in this subsection only in accordance with a
plan filed with and receiving the prior approval of the racing
commission, and on a basis of fifty percent participation by the
licensee and fifty percent participation by moneys from the fund,
in the total cost of approved projects: Provided, however, That
funds approved for one track may not be used at another track unless the first track ceases to operate or is viewed by the
commission as unworthy of additional investment due to financial or
ethical reasons.
(g)(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.
(2) The restricted races established in this subsection shall
be administered by a three-member committee consisting of:
(A) The racing secretary;
(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 a majority of the thoroughbred
breeders.
(3) The purses for the restricted races established in this
subsection shall be twenty percent larger than the purses for
similar type races at each track.
(4) Restricted races shall be funded by each racing
association from:
(A) Moneys placed in the general purse fund up to a maximum of
three hundred fifty thousand dollars 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."
(5) The racing schedules, purse amounts and types of races are
subject to the approval of the West Virginia racing commission.
(h) As used in this section, "West Virginia bred-foal" means
a horse that was born in the state of West Virginia.
(i) 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 by a West
Virginia stallion following the birth of that West Virginia
bred-foal.
(j) No association or licensee qualifying for the alternate
tax provision of subsection (b), section ten of this article is
eligible for participation in any of the provisions of this
section: Provided, That the provisions of this subsection do not
apply to a thoroughbred race track at which the licensee has participated in the West Virginia thoroughbred development fund for
a period of more than four consecutive calendar years prior to the
thirty-first day of December, one thousand nine hundred ninety-two.
(k) From the first day of July, two thousand one, West
Virginia accredited thoroughbred horses have preference for entry
in all accredited races at a thoroughbred race track at which the
licensee has participated in the West Virginia thoroughbred
development fund for a period of more than four consecutive
calendar years prior to the thirty-first day of December, one
thousand nine hundred ninety-two.