ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2406
(By Delegates DeLong, Tabb, Doyle and Wysong)
[Passed March 10, 2007; in effect ninety days from passage.]
AN ACT to amend and reenact §19-23-3 of the Code of West Virginia,
1931, as amended, and to amend and reenact §19-23-10 and §19-
23-13b of said code, all relating to horse and dog racing
generally; providing that in the event a yearling was born in
another state and transported to this state, the definition of
"Raiser of an accredited West Virginia horse" does not apply
to any pari-mutuel racing facility in Jefferson County;
providing for a five-year sunset provision relative to the
applicability of this definition at any pari-mutuel racing
facility in Hancock County; changing formula for distribution
of the greyhound breeder development fund moneys to equalize
purses by establishment of a points system as approved by the
West Virginia Racing Commission; authorizing use of reserve
balance funds for a training facility; authorizing the racing
commission to annually establish appropriate numbers of West
Virginia whelped greyhounds at racetrack kennels; sanctions
for not kenneling the minimum number of West Virginia whelped greyhounds; adding accreditation to the qualification of a
West Virginia thoroughbred sire; adding a minimum of fourteen
stakes horse races at Charles Town for restricted races; races
adding two restricted per racing day where sufficient horses
and purse funds are available; funding for additional races at
Charles Town; and continuing limitation on certain purse funds
at Mountaineer Park.
Be it enacted by the Legislature of West Virginia:
That §19-23-3, §19-23-10 and §19-23-13b of the Code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 23. HORSE AND DOG RACING.
§19-23-3. Definitions.
Unless the context in which used clearly requires a different
meaning, as used in this article:
(1) "Horse racing" means any type of horse racing, including,
but not limited to, thoroughbred racing and harness racing;
(2) "Thoroughbred racing" means flat or running type horse
racing in which each horse participating therein is a thoroughbred
and is mounted by a jockey;
(3) "Harness racing" means horse racing in which the horses
participating therein are harnessed to a sulky, carriage or other
vehicle and shall not include any form of horse racing in which the
horses are mounted by jockeys;
(4) "Horse race meeting" means the whole period of time for
which a license is required by the provisions of section one of this article;
(5) "Dog racing" means any type of dog racing, including, but
not limited to, greyhound racing;
(6) "Purse" means any purse, stake or award for which a horse
or dog race is run;
(7) "Racing association" or "person" means any individual,
partnership, firm, association, corporation or other entity or
organization of whatever character or description;
(8) "Applicant" means any racing association making
application for a license under the provisions of this article or
any person making application for a permit under the provisions of
this article, or any person making application for a construction
permit under the provisions of this article, as the case may be;
(9) "License" means the license required by the provisions of
section one of this article;
(10) "Permit" means the permit required by the provisions of
section two of this article;
(11) "Construction permit" means the construction permit
required by the provisions of section eighteen of this article;
(12) "Licensee" means any racing association holding a license
required by the provisions of section one of this article and
issued under the provisions of this article;
(13) "Permit holder" means any person holding a permit
required by the provisions of section two of this article and
issued under the provisions of this article;
(14) "Construction permit holder" means any person holding a construction permit required by the provisions of section eighteen
of this article and issued under the provisions of this article;
(15) "Hold or conduct" includes "assist, aid or abet in
holding or conducting";
(16) "Racing commission" means the West Virginia Racing
Commission;
(17) "Stewards" means the steward or stewards representing the
racing commission, the steward or stewards representing a licensee
and any other steward or stewards, whose duty it is to supervise
any horse or dog race meeting, all as may be provided by reasonable
rules of the racing commission, and the reasonable rules shall
specify the number of stewards to be appointed, the method and
manner of their appointment and their powers, authority and duties;
(18) "Pari-mutuel" means a mutuel or collective pool that can
be divided among those who have contributed their wagers to one
central agency, the odds to be reckoned in accordance to the
collective amounts wagered upon each contestant running in a horse
or dog race upon which the pool is made, but the total to be
divided among the first three contestants on the basis of the
number of wagers on these;
(19) "Pari-mutuel clerk" means any employee of a licensed
racing association who is responsible for the collection of wagers,
the distribution of moneys for winning pari-mutuel tickets,
verification of the validity of pari-mutuel tickets and accounting
for pari-mutuel funds;
(20) "Pool" means a combination of interests in a joint wagering enterprise or a stake in such enterprise;
(21) "Legitimate breakage" is the percentage left over in the
division of a pool;
(22) "To the dime" means that wagers shall be figured and paid
to the dime;
(23) "Code" means the Code of West Virginia, 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. In the event the yearling was born in
another state and transported to this state, this definition does
not apply after the thirty-first day of December, two thousand
seven, to any pari-mutuel racing facility located in Jefferson
County; nor shall it apply after the thirty-first day of December,
two thousand twelve, and thereafter to any pari-mutuel racing
facility located in Hancock County. Prior to the horse being
shipped out of the state for sales, the raiser must notify the
racing commission of his or her intentions;
(28) The "owner of an accredited West Virginia sire" is the
owner of record at the time the offspring is conceived;
(29) The "owner of an accredited West Virginia horse" means
the owner at the time the horse earned designated purses to qualify
for restricted purse supplements provided in section thirteen-b of
this article;
(30) "Registered greyhound owner" means an owner of a
greyhound that is registered with the National Greyhound
Association;
(31) "Fund" means the West Virginia Thoroughbred Development
Fund established in section thirteen-b of this article; and,
(32) "Regular purse" means both regular purses and stakes
purses.
§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, a training facility 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 points 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 points 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 point value at all greyhound tracks shall be the same as
approved by the racing commission to be effective April 1, 2007.
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 points 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;
Provided, That not more than one million dollars from the balance
in the purse supplemental fund shall be used for the construction
and maintenance of a dog training track and facilities if such be
approved by the West Virginia Racing Commission. The West Virginia
Racing Commission shall be authorized to promulgate rules governing
dog training tracks.
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. To assure breeders of accredited West Virginia
whelped greyhounds an opportunity to participate in the West
Virginia Greyhound Breeding Development Fund the West Virginia
Racing Commission by the first day of July 1 each year shall
establish and announce the minimum number of accredited West
Virginia whelped greyhounds that greyhound racing kennels at West
Virginia dog tracks must have on their racing active list during
the calendar year following such action. The minimum number may
vary from dog track to dog track. The minimum number shall be
established after consultation with the West Virginia Greyhound
Owners and Breeders Association and kennel owners and operators.
Factors to be considered in establishing this minimum number shall
be the number of individually registered accredited West Virginia
whelped greyhounds whelped in the previous two years. The number
of all greyhounds seeking qualification at each West Virginia dog
track, the ratio of active running greyhounds to housed number of
greyhounds at each West Virginia dog track, and the size and number
of racing kennels at each West Virginia dog track. Any greyhound
racing kennel not having the minimum number of accredited West
Virginia whelped greyhounds determined by the West Virginia Racing
Commission on their active list shall only be permitted to race the maximum allowable number on the active list less the number of
accredited West Virginia whelped greyhounds below the established
minimum number. Consistent violations of this minimum requirement
may for review by the Racing Commission and may constitute cause
for denial or revocation of a kennel's racing license. 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 and capital improvement
account". The racing commission is authorized to expend the moneys
deposited in the administration, promotion and educational and
capital improvement 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.
§19-23-13b. West Virginia Thoroughbred Development Fund;
distribution; restricted races; nonrestricted purse supplements; preference for West Virginia
accredited thoroughbreds.
(a) The Racing Commission shall deposit moneys required to be
withheld by an association or licensee in subsection (b), section
nine of this article in a banking institution of its choice in a
special account to be known as "West Virginia Racing Commission
Special Account -- West Virginia Thoroughbred Development Fund":
Provided, That after the West Virginia Lottery Commission has
divided moneys between the West Virginia Thoroughbred Development
Fund and the West Virginia Greyhound Breeding Development Fund
pursuant to the provisions of sections ten and ten-b, article
twenty-two-a, chapter twenty-nine of this code, the Racing
Commission shall, beginning the first day of October, two thousand
five, deposit the remaining moneys required to be withheld from an
association or licensee designated to the Thoroughbred Development
Fund under the provisions of subsection (b), section nine of this
article, subdivision (3), subsection (e), section twelve-b of this
article, subsection (b), section twelve-c of this article,
paragraph (B), subdivision (3), subsection (b), section thirteen-c
of this article and sections ten and ten-b, article twenty-two-a,
chapter twenty-nine of this code into accounts for each
thoroughbred racetrack licensee with a banking institution of its
choice with a separate account for each association or licensee.
Each separate account shall be a special account to be known as
"West Virginia Racing Commission Special Account - West Virginia
Thoroughbred Development Fund" and shall name the licensee for which the special account has been established:
Provided, however,
That the Racing Commission shall deposit all moneys paid into the
Thoroughbred Development Fund by a thoroughbred racetrack licensee
that did not participate in the Thoroughbred Development Fund for
at least four consecutive calendar years prior to the thirty-first
day of December, one thousand nine hundred ninety-two from the
eighth day of July, two thousand five until the effective date of
the amendment to this section passed during the fourth
extraordinary session of the seventy-seventh Legislature shall be
paid into the purse fund of that thoroughbred racetrack licensee:
Provided further, That the moneys paid into the Thoroughbred
Development Fund by a thoroughbred racetrack licensee that did not
participate in the Thoroughbred Development Fund for at least four
consecutive calendar years prior to the thirty-first day of
December, one thousand nine hundred ninety-two, shall be
transferred into that licensee's purse fund until the first day of
April, two thousand six. Notice of the amount, date and place of
the deposits shall be given by the Racing Commission, in writing,
to the State Treasurer. The purpose of the funds is to promote
better breeding and racing of thoroughbred horses in the state
through awards and purses for accredited breeders/raisers, sire
owners and thoroughbred race horse owners:
And provided further,
That five percent of the deposits required to be withheld by an
association or licensee in subsection (b), section nine of this
article shall be placed in a special revenue account hereby created
in the State Treasury called the "Administration and Promotion Account".
(b) The Racing Commission is authorized to expend the moneys
deposited in the administration and promotion account at times and
in amounts as the Commission determines to be necessary for
purposes of administering and promoting the thoroughbred
development program:
Provided, That during any fiscal year in
which the Commission anticipates spending any money from the
account, the Commission shall submit to the executive department
during the budget preparation period prior to the Legislature
convening before that fiscal year for inclusion in the executive
budget document and budget bill the recommended expenditures, as
well as requests of appropriations for the purpose of
administration and promotion of the program. The Commission shall
make an annual report to the Legislature on the status of the
administration and promotion account, including the previous year's
expenditures and projected expenditures for the next year.
(c) The fund or funds and the account or accounts established
in subsection (a) of this section shall operate on an annual basis.
(d) Funds in the Thoroughbred Development Fund or funds in the
separate accounts for each association or licensee as provided in
subsection (a) of this section shall be expended for awards and
purses except as otherwise provided in this section. Annually, the
first eight hundred thousand dollars shall be available for
distribution for a minimum of fourteen accredited stakes races at
a racetrack which has participated in the West Virginia
Thoroughbred Development Fund for a period of more than four consecutive calender years prior to the thirty-first day of
December, one thousand nine hundred ninety-two. The weights for
all accredited stakes races shall be weight for age. One of the
stakes races shall be the West Virginia Futurity and the second
shall be the Frank Gall Memorial Stakes. For the purpose of
participating in the West Virginia Futurity only, all mares,
starting with the breeding season beginning 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 accredited stake races shall be chosen by the
committee set forth in subsection (f) of this section.
(e) Awards and purses shall be distributed as follows:
(1) The breeders/raisers of accredited thoroughbred horses
that earn a purse at a participating West Virginia meet shall
receive a bonus award calculated at the end of the year as a
percentage of the fund dedicated to the breeders/raisers, which
shall be sixty percent of the fund available for distribution in
any one year. The total amount available for the
breeders'/raisers' awards shall be distributed according to the
ratio of purses earned by an accredited race horse to the total
amount earned in the participating races by all accredited race
horses for that year as a percentage of the fund dedicated to the
breeders/raisers. However, no breeder/raiser may receive from the
fund dedicated to breeders'/raisers' awards an amount in excess of the earnings of the accredited horse at West Virginia meets. In
addition, should a horse's breeder and raiser qualify for the same
award on the same horse, they will each be awarded one half of the
proceeds. The bonus referred to in this subdivision may only be
paid on the first 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 an accredited West Virginia sire of an
accredited thoroughbred horse that earns a purse in any race at a
participating West Virginia meet shall receive a bonus award
calculated at the end of the year as a percentage of the fund
dedicated to sire owners, which shall be fifteen percent of the
fund available for distribution in any one year. The total amount
available for the sire owners' awards shall be distributed
according to the ratio of purses earned by the progeny of
accredited West Virginia stallions in the participating races for
a particular stallion to the total purses earned by the progeny of
all accredited West Virginia stallions in the participating races.
However, no sire owner may receive from the fund dedicated to sire
owners an amount in excess of thirty-five percent of the accredited
earnings for each sire. 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.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any participating race at a West Virginia meet shall
receive a restricted purse supplement award calculated at the end of the year, which shall be twenty-five percent of the fund
available for distribution in any one year, based on the ratio of
the earnings in the races of a particular race horse to the total
amount earned by all accredited race horses in the participating
races during that year as a percentage of the fund dedicated to
purse supplements. However, the owners may not receive from the
fund dedicated to purse supplements an amount in excess of
thirty-five 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 (f) of this section. Any
amount not so used shall revert into the general account of the
Thoroughbred Development Fund for each racing association or
licensee for distribution in the next year.
Distribution shall be made on the fifteenth day of each
February for the preceding year's achievements.
(f) (1) Each pari-mutuel thoroughbred horse track shall
provide at least one restricted race per racing day:
Provided, That sufficient horses and funds are available. For purposes of
this subsection, there are sufficient horses if there are at least
seven single betting interests received for the race.
Provided
further, That, if sufficient horses and funds are available, any
thoroughbred horse racetrack whose licensee participated in the
Thoroughbred Development Fund for at least four consecutive
calendar years prior to the thirty-first day of December one
thousand nine hundred ninety-two, shall provide two restricted
races per racing day, at least one of which may be split at the
discretion of the racing secretary. The restricted race required
by this section must be included in the first nine races written in
the condition book for that racing day.
(2) The restricted races established in this subsection shall
be administered by a three-member committee at each track
consisting of:
(A) The racing secretary;
(B) A member appointed by the authorized representative of a
majority of the owners and trainers at the thoroughbred track; and
(C) A member appointed by the West Virginia Thoroughbred
Breeders Association.
(3) Restricted races shall be funded by each racing
association from:
(A) Moneys placed in the general purse fund:
Provided, That
a thoroughbred horse racetrack which did not participate in the
West Virginia Thoroughbred Development fund for a period of more
than four consecutive years prior to the thirty-first day of December, one thousand nine hundred ninety-two, may fund restricted
races in an amount not to exceed one million 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".
(4) The racing schedules, purse amounts and types of races are
subject to the approval of the West Virginia Racing Commission.
(5) If less than seventy-five percent of the restricted races
required by this subsection fail to receive enough entries to race,
the Racing Commission shall, on a quarterly basis, dedicate funds
in each fund back to the general purse fund of the racing
association or licensee:
Provided, That no moneys may be dedicated
back to a general purse fund if the dedication would leave less
than two hundred fifty thousand dollars in the fund.
(g) As used in this section, "West Virginia bred-foal" means
a horse that was born in the State of West Virginia.
(h) To qualify for the West Virginia Accredited Race Fund, the
breeder must qualify under one of the following:
(1) The breeder of the West Virginia bred-foal is a West
Virginia resident;
(2) The breeder of the West Virginia bred-foal is not a West
Virginia resident, but keeps his or her breeding stock in West
Virginia year round; or
(3) The breeder of the West Virginia bred-foal is not a West
Virginia resident and does not qualify under subdivision (2) of
this subsection, but either the sire of the West Virginia bred-foal is a West Virginia stallion, or the mare is covered only by a West
Virginia accredited stallion or stallions before December 31 of the
calendar year following the birth of that West Virginia bred-foal.
(i) From 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 participates in the West Virginia Thoroughbred Development
Fund.
(j) Beginning the first day of July, two thousand six, any
racing association licensed by the Racing Commission to conduct
thoroughbred racing and permitting and conducting pari-mutuel
wagering under the provisions of this article must have a West
Virginia Thoroughbred Racing Breeders Program.
(k) The Commission shall, during calendar year two thousand
nine, conduct a study of the adequacy of funding provided for the
Thoroughbred Development Fund at any thoroughbred racetrack which
has not participated in the West Virginia Thoroughbred Development
Fund for a period of more than four consecutive calendar years
prior to the thirty-first day of December, one thousand nine
hundred ninety-two, and shall report its findings and
recommendations to the Joint Committee on Government and Finance on
or before the first day of December, two thousand nine.