Introduced Version - Originating in Committee
Senate Bill 763 History
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Senate Bill No. 763
(By Senators Bowman, Boley, Browning, Caruth, Kessler, McCabe,
Minard, Snyder, Sypolt, White and Williams)
____________
[Originating in the Committee on Government Organization;
reported March 26, 2009.]
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A BILL to amend and reenact º19-23-3, º19-23-13a and º19-23-13b of
the Code of West Virginia, 1931, as amended, all relating to
clarifying that registration of
certain thoroughbred race
horses is under the authorization and oversight of the
Racing
Commission
.
Be it enacted by the Legislature of West Virginia:
That º19-23-3, º19-23-13a and º19-23-13b 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:
(24) (a) "Accredited thoroughbred horse" means a thoroughbred
horse that is:
(a) (1) Foaled in West Virginia;
(b) (2) Sired by an accredited West Virginia sire; or
(c) (3) 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) (b) "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 the West Virginia Thoroughbred
Breeders Association under the authorization and oversight of the
Racing Commission.
(8) (c) "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
(26) (d) "Breeder of an accredited West Virginia horse" is the
owner of the foal at the time it was born in West Virginia.
(23) (e) "Code" means the Code of West Virginia, 1931, as
heretofore and hereinafter amended.
(11) (f) "Construction permit" means the construction permit required by the provisions of section eighteen of this article.
(14) (g) "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.
(5) (h) "Dog racing" means any type of dog racing, including,
but not limited to, greyhound racing.
(31) (i) "Fund" means the West Virginia Thoroughbred
Development Fund established in section thirteen-b of this article.
(3) (j) "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.
(15)(k) "Hold or conduct" includes "assist, aid or abet in
holding or conducting".
(4) (l) "Horse race meeting" means the whole period of time
for which a license is required by the provisions of section one of
this article.
(1) (m) "Horse racing" means any type of horse racing,
including, but not limited to, thoroughbred racing and harness
racing.
(21) (n) "Legitimate breakage" is the percentage left over in
the division of a pool.
(9) (o) "License" means the license required by the provisions of section one of this article.
(12) (p) "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.
(29) (q) 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.
(28) (r) The "owner of an accredited West Virginia sire" is
the owner of record at the time the offspring is conceived.
(18) (s) "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) (t) "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.
(10) (u) "Permit" means the permit required by the provisions
of section two of this article.
(13) (v) "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.
(20) (w) "Pool" means a combination of interests in a joint
wagering enterprise or a stake in such enterprise.
(6) (x) "Purse" means any purse, stake or award for which a
horse or dog race is run.
(7) (y) "Racing association" or "person" means any individual,
partnership, firm, association, corporation or other entity or
organization of whatever character or description.
(16) (z) "Racing commission" means the West Virginia Racing
Commission.
(27) (aa) "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 December 31, 2007, to any pari-mutuel racing
facility located in Jefferson County; nor shall it apply after
December 31, 2012, 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.
(30) (bb) "Registered greyhound owner" means an owner of a
greyhound that is registered with the National Greyhound
Association.
(32) (cc) "Regular purse" means both regular purses and stakes
purses.
(17) (dd) "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.
(22) (ee) "To the dime" means that wagers shall be figured and
paid to the dime. and
(2) (ff) "Thoroughbred racing" means flat or running type
horse racing in which each horse participating therein is a
thoroughbred and is mounted by a jockey.
§19-23-13a. West Virginia Bonus Race Fund.
(a) An association licensed by the West Virginia Racing
Commission to conduct horse race meetings may establish at its
track a special fund to be known as the Bonus Race Fund, in the manner hereinafter provided by this section.
(b) The fund shall be established only if written approval is
given by the duly authorized representative of a majority of the
owners and trainers who hold the permit required by section eight
of this article at the horse racetrack and by the authorized agent
of the association.
(c) The association shall deposit each day, into the fund
hereby established, an amount equal to one tenth of one percent of
the total daily pari-mutuel pool or pools, which sum shall be
appropriated from the special purse fund established in subdivision
(1), subsection (b), section nine of this article. In addition
thereto, the association shall, from the commission retained by the
association under the provisions of said section nine of this
article, deposit into the Bonus Race Fund the following sums: Each
day an amount equal to four one hundredths of one percent of the
total daily pari-mutuel pool during the fiscal year beginning July
1, 1982, and each year thereafter; an additional three one
hundredths of one percent of the total daily pari-mutuel pools for
the fiscal year beginning July 1, 1983 and each year thereafter;
and an additional three one hundredths of one percent of the total
daily pari-mutuel pools for the fiscal year beginning July 1, 1984,
and each year thereafter.
(d) To be eligible to participate in purses to be paid from
the proceeds of this fund, each horse must be registered with the West Virginia Thoroughbred Breeders Association
under the
authorization and oversight of the Racing Commission
. To qualify
for such registration the said horse must have been foaled in the
State of West Virginia or sired by a stallion standing in the State
of West Virginia or both foaled in West Virginia and sired by a
stallion standing in West Virginia.
(a) (1) A horse is bred where it is foaled. The breeder is
the owner of the dam at the time of foaling.
(b) Any owner or breeder may appeal from the refusal of the
West Virginia thoroughbred breeders association to register a horse
under this rule to the West Virginia racing commission, and the
decision of the commission shall be final.
(c) (2) To be considered a West Virginia stallion, it is
required that he be in the State of West Virginia for at least one
full breeding season, commonly understood to be the first six
months of a year, or if the stallion is brought in subsequent to
the start of the breeding season, he must be approved as a West
Virginia stallion by the West Virginia
Thoroughbred Breeders
Association
under the authorization and oversight of the Racing
Commission
.
(e) An owner or breeder may appeal to the West Virginia Racing
Commission any decision
of the West Virginia Thoroughbred Breeders
Association concerning registration of a horse. The decision of
the Racing Commission
is final.
(f) At each horse racetrack at which such the fund is created,
the funds shall be administered by a committee comprised of the
following five members:
(1) Two elected members of the West Virginia Thoroughbred
Breeders Association;
(2) One elected member of the local Horsemen's Benevolent
Protective Association;
(3) The general manager of the local track or his or her
representative; and
(4) A member of the West Virginia Racing Commission or someone
designated by the Racing Commission.
(g) The powers and authority of the Racing Commission
established under the provisions of section six of this article are
extended to supervision of the fund created by this section and to
the promulgation of reasonable rules and regulations for
implementing and making effective the provisions of this section.
§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 October 10, 2005, 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 December 31, 1992, from July 8, 2005, until
effective date of the amendment to this section passed during the
fourth extraordinary session of the seventy-seventh Legislature
September 13, 2005, 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 December 31, 1992, shall be transferred into that licensee's
purse fund until April 1, 2006. 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 $800,000 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 calendar years prior to
December 31, 1992. 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 February 1, 2004, through July 1, 2004, 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 under the
authorization and oversight of the Racing Commission
.
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 $100,000 of any purse and not on any amounts in
excess of the first $100,000.
(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 $100,000 of any purse and not on
any amounts in excess of the first $100,000.
(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 $100,000 of any purse and not on
any amounts in excess of the first $100,000.
(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 December 31, 1992, 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 December 31, 1992, may fund
restricted races in an amount not to exceed $1 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 $250,000 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 July 1, 2001, 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 July 1, 2006, 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 2009, 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
December 31, 1992, and shall report its findings and
recommendations to the Joint Committee on Government and Finance on
or before the December 1, 2009.