H. B. 3084
(By Delegates Barrett, Sponaugle and Caputo)
[Introduced March 25, 2013; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §19-23-13b of the Code of West
Virginia, 1931, as amended, relating to restricted races at
pari-mutuel thoroughbred horse race tracks; permitting up to
two restricted races if there are at least seven single
betting interests; permitting a third restricted race if there
are at least nine single betting interests; and eliminating a
provision concerning if less than seventy-five percent of the
restricted races fail to receive enough entries to race.
Be it enacted by the Legislature of West Virginia:
That §19-23-13b of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 23. HORSE AND DOG RACING.
§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 1, 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
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 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 continued in the
State Treasury called the "Administration and Promotion Account":
And provided however further, That four and one-half percent of the
deposits into the thoroughbred development fund shall be placed in
the Administration and Promotion Account, except that of this
percentage, no more than $305,000 shall be placed in the account in
any year.
(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 through July 31, 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. 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 up to two restricted
races required by this subsection and at least nine single betting
interests received for a third restricted race required by this
subsection: Provided, however, 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 three 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 at each track;
(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 $1,000,000 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.
NOTE: The purpose of this bill is to permit up to two
restricted races at pari-mutuel thoroughbred horse race tracks if
there are at least seven single betting interests. The bill
permits a third restricted race if there are at least nine single
betting interests. The bill eliminates a provision concerning if
less than seventy-five percent of the restricted races fail to
receive enough entries to race.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.