ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2595
(By Delegates Pettit, Doyle, Manuel, Seacrist and
Faircloth)
[Passed April 12, 1997; in effect ninety days from passage.]
AN ACT to amend and reenact sections twelve-b, twelve-c and
thirteen, article twenty-three, chapter nineteen of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, all relating to simulcasting of horse and dog races
and pari-mutuel wagering on simulcast races; providing for
broadcast of televised horse and dog races between racetracks
within the state of West Virginia; providing for live racing
dates; providing for a negotiated signal transmission fee as
consideration for a host racing association's televised racing
services; providing for payments into racetrack employees'
pension funds, the thoroughbred development fund and purse
funds; disposition of funds for payment of outstanding and
unredeemed pari-mutuel tickets; publication of notice;
irredeemable tickets; stake races for dog tracks
Be it enacted by the Legislature of West Virginia:
That sections twelve-b, twelve-c and thirteen, article twenty- three, chapter nineteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended and reenacted, all
to read as follows:
ARTICLE 23. HORSE AND DOG RACING.
§19-23-12b. Televised racing days; merging of pari-mutuel
wagering pools.
(a) For the purposes of this section:
(1) "Televised racing day" means a calendar day, assigned by
the commission, at a licensed racetrack on which pari-mutuel
betting is conducted on horse or dog races run at other racetracks
in this state or at racetracks outside of this 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 governmental
entity, conducts the horse or dog race upon which wagers are
placed.
(b) A licensee conducting not less than two hundred twenty
live racing dates for each horse or dog race meeting may, with the
prior approval of the state racing commission, contract with any
legal wagering entity in this state or in any other governmental jurisdiction to receive telecasts and accept wagers on races
conducted by the legal wagering entity:
Provided, That at those
thoroughbred racetracks the licensee, in applying for racing dates,
shall apply for not less than two hundred ten live racing dates for
each horse race meeting:
Provided, however, That at those
thoroughbred racetracks that have 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, the licensee may
apply for not less than one hundred fifty-nine live racing dates
during the calendar year of one thousand nine hundred ninety-seven.
If, thereafter, for reasons beyond the licensee's control, related
to adverse weather conditions, unforeseen casualty occurrences or
a shortage of thoroughbred horses eligible to compete for purses,
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 and the representative of the majority of the
mutuel clerks 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:
Provided further, That the commission shall give consideration to
whether there existed available unscheduled potential live racing
dates following the adverse weather or casualty and prior to the
end of the race meeting which could be used as new live racing
dates in order to maintain the full live racing schedule previously
approved by the racing commission. If an objection is received by
the commission within the time limits, the commission shall, within
thirty days of receipt of such objection, set a hearing on the
question of reducing racing days, which hearing shall be conducted
at a convenient place in the county in which the requesting
racetrack is located. The commission shall hear from all parties
concerned and, based upon testimony and documentary evidence
presented at the hearing, shall determine the required number of
live racing days:
And provided further, That the commission shall
not reduce the number of live racing days below one hundred eighty- five days for a horse race meeting unless the licensee requesting
such reduction has: (i) Filed with the commission a current
financial statement, which shall be subject to independent audit;
and (ii) met the burden of proving that just cause exists for such
requested reduction in live racing days. The telecasts may be
received and wagers accepted at any location authorized by the
provisions of section twelve-a of this article. The contract must
receive the approval of the representative of the majority of the
owners and trainers who hold permits required by section two of this article at the receiving thoroughbred racetrack.
(c) The commission may allow the licensee to commingle its
wagering pools with the wagering pools of the host racing
association. If the pools are commingled, the wagering at the
licensee's racetrack must be on tabulating equipment capable of
issuing pari-mutuel tickets and be electronically linked with the
equipment at the sending racetrack. Subject to the approval of the
commission, the types of betting, licensee commissions and
distribution of winnings on pari-mutuel pools of the sending
licensee racetrack are those in effect at the licensee racetrack.
Breakage for pari-mutuel pools on a televised racing day must be
calculated in accordance with the law or rules governing the
sending racetrack and must be distributed in a manner agreed to
between the licensee and the sending racetrack. For the televised
racing services it provides, the host racing association shall
receive a fee to be paid by the receiving licensee racetrack which
shall be in an amount to be agreed upon by the receiving licensee
racetrack and the host racing association.
(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. The calculation of the total pari-mutuel pool
for purposes of this subsection shall include only one half of all
wagers placed at a licensed racetrack in this state on televised
races conducted at another licensed racetrack within this state.
Payments of the tax imposed by this section are subject to the
requirements of subsection (e), section ten of this article.
(2) From the licensee commissions authorized by subsection
(c) of this section, after payments are made in accordance with the
provisions of subdivision (1) of this subsection, the licensee
shall pay, for each televised racing day, one fourth of one percent
of the total pari-mutuel pools for and on behalf of all employees of the licensed racing association by making a deposit into a
special fund to be established by the racing commission and to be
used for payments into the pension plan for all employees of the
licensed racing association.
(3) From the licensee commissions authorized by subsection
(c) of this section, after payments are made in accordance with the
provisions of subdivisions (1) and (2) of this subsection,
thoroughbred licensees shall pay,, one-half percent of net simulcast
income and for each televised racing day on or after the first day
of July, one thousand nine hundred ninety-seven, an additional five
and one-half percent of net simulcast income into the West Virginia
thoroughbred development fund established by the racing commission
according to section thirteen-b of this article:
Provided, That no
licensee qualifying for the alternate tax provisions of subsection
(b), section ten of this article shall be required to make the
payments unless 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. For the purposes
of this section, the term "net simulcast income" means the total
commission deducted each day by the licensee from the pari-mutuel
pools on simulcast horse or dog races, less direct simulcast
expenses, including, but not limited to, the cost of simulcast
signals, telecommunication costs and decoder costs.
(f) After deducting the tax and other payments required by
subsection (e) of this section, the amount required to be paid under the terms of the contract with the host racing association
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. After deducting the
tax and other payments required by subsection (e) of this section,
dog racetracks shall pay an amount equal to two- tenths of one
percent of the daily simulcast pari-mutuel pool to the "West
Virginia Racing Commission Special Account-West Virginia Greyhound
Breeding Development Fund.
(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.
§19-23-12c. Interstate simulcasts by licensed racetracks.
(a) Any licensed racing association may be authorized by the
commission to transmit broadcasts of races conducted at its
racetrack to legal wagering entities located outside this state,
which legal wagering entities located outside this state shall not
be subject to the provisions of subsection (e), of section twelve-b of
this article:
Provided, That as consideration for the televised
racing services it provides, the host racing association shall
receive a signal transmission fee to be paid by the receiving legal
wagering entity which shall be in an amount agreed upon by the receiving legal wagering entity and the host racing association.
All broadcasts of horse races shall be in accordance with all of
the provisions of the "Federal Interstate Horseracing Act of
1978", also known as Public Law 95-515, Ssection 3001-3007 of Title
15 of the United States Code.
(b) One percent of the total signal transmission fee provided
in subsection (a) of this section shall be paid into a special fund
to be established by the racing commission for and on behalf of all
employees of the licensed racing association to be used for
payments into the pension plan for all employees of the licensed
racing association, and any thoroughbred horse racetrack which 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.
Seven and one-half percent of the signal transmission fee shall be
paid into the West Virginia thoroughbred development fund
established by the racing commission according to section thirteen- b of this article. After deducting (i) the amounts required to be
placed into the pension plan for all employees of the licensed
racing association under this section, (ii) the amounts, if any,
required to be paid into the West Virginia thoroughbred development
fund under this section. The racing association may deduct from
the signal transmission fee direct costs necessary to send a live
audio and visual signal of horse races or dog races from any
racetrack licensed under the provisions of section one of this article to any legal wagering entities outside this state for the
purpose of pari-mutuel wagering, which direct costs shall include
the cost of satellite equipment necessary to transmit the signal,
a satellite operator and the satellite time necessary to broadcast
the signal and the cost of telecommunication and facsimile services
needed to communicate necessary information to all legal wagering
entities for the purpose of pari-mutuel wagering. After the
deductions provided for in this subsection are made, thoroughbred
horseracing associations shall make a deposit equal to fifty
percent of the remainder into the purse fund established under the
provisions of subdivision (1b), subsection (b1), section nine of this
article.
§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 such ninety-day period, and the licensee shall give such
information as the racing commission may require concerning such
outstanding and unredeemed tickets. All such 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 such 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 such outstanding and unredeemed pari-mutuel tickets,
notifying them to present such tickets for payment at the principal
office of the racing commission within ninety days from the date of
the publication of such notice. Such notice shall be published
within fifteen days following the receipt of said 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 such publication shall
be the county in which such horse or dog race meeting was held and
the county in which the televised racing day wagering was conducted
in this state.
(b) Any such pari-mutuel tickets that shall not be presented
for payment within ninety days from the date of the publication of
the notice shall thereafter be irredeemable, and the moneys
theretofore held for the redemption of such 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
therein the moneys turned over by such licensee and the amount expended at such 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 such horse is at the time of such horse race a
bona fide resident of this state, a sum equal to ten percent of the
purse won by such horse. 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 filed a personal income tax
return in this state for the previous two years and that he owned
real or personal property in this state and paid taxes in this
state on said property for the previous two years, he 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 such horse;
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 such winning horse
was served by a stallion standing and registered in this state, a sum equal to ten percent of the purse won by such horse; 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 such 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 such 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 during the fiscal year beginning on the
first day of July, one thousand nine hundred ninety-six, but not
thereafter, and subject to availability of funds, the commission shall, after the requirements of subdivisions (1), (2), (3) and (4)
of this subsection have been satisfied, transfer three hundred
thousand dollars of such excess moneys into a separate account to
be used for promotional activities and purses for stakes races for
the West Virginia thoroughbred breeders classics, which shall give
equal consideration to all horses qualifying under the West
Virginia breeders program for each stake race, based solely on the
horses' sex, age and earnings:
Provided, however, That beginning
with the fiscal year beginning on the first day of July, one
thousand nine hundred ninety-seven, and 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:
(i) Transfer annually two hundred thousand dollars to the
"West Virginia Racing Commission Special Account - West Virginia
Greyhound Breeding Development Fund"; and
(ii) Transfer annually two hundred thousand dollars into a
separate account to be used for stakes races for West Virginia bred
greyhounds at dog racetracks.
(6) Notwithstanding any limitations on use of funds pursuant
to subdivision (6)six, of subsection (c), section ten, article twenty- two-a, chapter twenty-nine of this code to the contrary, beginning
on the first day of July, one thousand nine hundred ninety-seven,
those funds deposited into the separate account previously dedicated solely to the West Virginia thoroughbred breeders
classics shall thereafter be allocated as follows:
(A) For each fiscal year, the first eight hundred thousand
dollars deposited in the separate account, together with any
balance remaining in the separate account on the thirtieth day of
June, one thousand nine hundred ninety-seven, shall be used by the
commission for promotional activities, advertising, administrative
costs and purses for the West Virginia thoroughbred breeders
classics, which shall give equal consideration to all horses
qualifying under the West Virginia breeders program for each stake
race, based solely on the horses' sex, age and earnings.
(B) For each fiscal year, the next two hundred thousand
dollars deposited into the separate account shall be used by the
commission for promotional activities and purses for open stake
races for a race event to be known as the West Virginia derby to be
held at a thoroughbred racetrack which does not participate in the
West Virginia thoroughbred development fund.
(C) For each fiscal year, once the amounts provided in
paragraphs
(A) and (B) of this subdivision have been deposited into
the separate account for use in connection with the West Virginia
thoroughbred breeders classics and the West Virginia derby, the
commission shall return to each racetrack all additional amounts
deposited which originate during that fiscal year from each
respective racetrack pursuant to subdivision (6)six, of subsection (c),
section ten, article twenty-two-a, chapter twenty-nine of this code, which returned excess funds shall be used as follows:
(i) For each dog racetrack, one- half of the returned excess
funds shall be used for capital improvements at the racetrack and
one- half of the returned excess funds shall be deposited into the
"West Virginia Racing Commission Special Account - West Virginia
Greyhound Breeding Development Fund".
(ii) At those thoroughbred racetracks that have 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, one- half of
the returned excess funds shall be used for capital improvements at
the licensee's racetrack and one-half of the returned excess funds
shall be equally divided between the West Virginia thoroughbred
breeders classics and the West Virginia thoroughbred development
fund.
(iii) At those thoroughbred horse racetracks which do not
participate in the West Virginia thoroughbred development fund,
one- half of the returned excess funds shall be used for capital
improvements at the licensee's racetrack and one- half of the
returned excess funds shall be used for purses for the open stakes
race event known as the West Virginia derby as provided in
paragraph (B) of this subdivision.
(iv) All expenditures which are funded under this subdivision
(6)six must be approved in writing by the West Virginia racing
commission before the funds are expended for any of the purposes authorized by this subdivision.
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".
(c) 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.
(d) 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.
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