59.1-369 - Powers and duties of the Commission.
§ 59.1-369. Powers and duties of the Commission.
The Commission shall have all powers and duties necessary to carry out theprovisions of this chapter and to exercise the control of horse racing as setforth in § 59.1-364. Such powers and duties shall include but not be limitedto the following:
1. The Commission is vested with jurisdiction and supervision over all horseracing licensed under the provisions of this chapter including all personsconducting, participating in, or attending any race meeting. It shall employsuch persons to be present at race meetings as are necessary to ensure thatthey are conducted with order and the highest degree of integrity. It mayeject or exclude from the enclosure or from any part thereof any person,whether or not he possesses a license or permit, whose conduct or reputationis such that his presence may, in the opinion of the Commission, reflect onthe honesty and integrity of horse racing or interfere with the orderlyconduct of horse racing.
2. The Commission, its representatives, and employees shall visit,investigate, and have free access to the office, track, facilities, satellitefacilities or other places of business of any license or permit holder, andmay compel the production of any of the books, documents, records, ormemoranda of any license or permit holder for the purpose of satisfyingitself that this chapter and its regulations are strictly complied with. Inaddition, the Commission may require the production of an annual balancesheet and operating statement of any person licensed or granted a permitpursuant to the provisions of this chapter and may require the production ofany contract to which such person is or may be a party.
3. The Commission shall promulgate regulations and conditions under whichhorse racing with pari-mutuel wagering shall be conducted in theCommonwealth, and all such other regulations it deems necessary andappropriate to effect the purposes of this chapter, including a requirementthat licensees post, in a conspicuous place in every place where pari-mutuelwagering is conducted, a sign which bears a toll-free telephone number for"Gamblers Anonymous" or other organization which provides assistance tocompulsive gamblers. Such regulations shall include provisions foraffirmative action to assure participation by minority persons in contractsgranted by the Commission and its licensees. Nothing in this subdivisionshall be deemed to preclude private local ownership or participation in anyhorse racetrack. Such regulations may include penalties for violations. Theregulations shall be subject to the Administrative Process Act (§ 2.2-4000 etseq.).
4. The Commission shall promulgate regulations and conditions under whichsimulcast horse racing shall be conducted at a licensed horse racetrack orsatellite facility in the Commonwealth and all such other regulations itdeems necessary and appropriate to effect the purposes of this chapter. Suchregulations shall include provisions that all simulcast horse racing shallcomply with the Interstate Horse Racing Act of 1978 (15 U.S.C. § 3001 etseq.) and shall require the holder of an unlimited license to schedule notless than 150 live racing days in the Commonwealth each calendar year;however, the Commission shall have the authority to alter the required numberof live racing days based on what the Commission deems to be in the bestinterest of the Virginia horse industry. Such regulations shall authorize upto 10 satellite facilities and restrict majority ownership of satellitefacilities to an entity licensed by the Commission which owns a horseracetrack in the Commonwealth. Nothing in this subdivision shall be deemed topreclude private local ownership or participation in any satellite facility.Except as authorized pursuant to subdivision 5, wagering on simulcast horseracing shall take place only at a licensed horse racetrack or satellitefacility.
5. The Commission shall promulgate regulations and conditions regulating andcontrolling advance deposit account wagering. Such regulations shall include,but not be limited to, (i) standards, qualifications, and procedures for theissuance of a license to any such entity or entities pursuant to § 59.1-375to operate pari-mutuel wagering in the Commonwealth; (ii) provisionsregarding access to books, records, and memoranda, and submission toinvestigations and audits, as authorized by subdivisions 2 and 10 of thissection; and (iii) provisions regarding the collection of all revenues due tothe Commonwealth from the placing of such wagers. No pari-mutuel wager may bemade on or with any computer owned or leased by the Commonwealth, or any ofits subdivisions, or at any public elementary or secondary school, or anypublic college or university. The Commission also shall ensure that, exceptfor this method of pari-mutuel wagering, all wagering on simulcast horseracing shall take place only at a licensed horse racetrack or satellitefacility.
Notwithstanding the provisions of § 59.1-392, the allocation of revenue fromadvance deposit account wagering shall include (i) a licensee fee paid to theCommission; (ii) an additional fee equal to 10 percent of all wagers madewithin the Commonwealth placed through an advance deposit account wageringlicensee, out of which shall be paid: (a) one-half to all unlimited licenseesand (b) one-half to representatives of the recognized majority horsemengroups; and (iii) an additional fee equal to one percent of all wagers madewithin the Commonwealth placed through an advance deposit account wageringlicensee, which shall be paid to the Virginia Breeders Fund.
Nothing in this subdivision shall be construed to limit the Commission'sauthority as set forth elsewhere in this section.
6. The Commission may issue subpoenas for the attendance of witnesses beforeit, administer oaths, and compel production of records or other documents andtestimony of such witnesses whenever, in the judgment of the Commission, itis necessary to do so for the effectual discharge of its duties.
7. The Commission may compel any person holding a license or permit to filewith the Commission such data as shall appear to the Commission to benecessary for the performance of its duties including but not limited tofinancial statements and information relative to stockholders and all otherswith any pecuniary interest in such person. It may prescribe the manner inwhich books and records of such persons shall be kept.
8. The Commission may enter into arrangements with any foreign or domesticgovernment or governmental agency, for the purposes of exchanging informationor performing any other act to better ensure the proper conduct of horseracing.
9. The Commission shall report annually on or before March 1 to the Governorand the General Assembly, which report shall include a financial statement ofthe operation of the Commission.
10. The Commission may order such audits, in addition to those required by §59.1-394, as it deems necessary and desirable.
11. The Commission shall upon the receipt of a complaint of an allegedcriminal violation of this chapter immediately report the complaint to theAttorney General of the Commonwealth and the State Police for appropriateaction.
12. The Commission shall provide for the withholding of the applicable amountof state and federal income tax of persons claiming a prize or pay-off for awinning wager and shall establish the thresholds for such withholdings.
13. The Commission, its representatives and employees may, within theenclosure, stable, or other facility related to the conduct of racing, andduring regular or usual business hours, subject any (i) permit holder topersonal inspections, including alcohol and drug testing for illegal drugs,inspections of personal property, and inspections of other property orpremises under the control of such permit holder and (ii) horse eligible torace at a race meeting licensed by the Commission to testing for substancesforeign to the natural horse within the racetrack enclosure or other placewhere such horse is kept. Any item, document or record indicative of aviolation of any provision of this chapter or Commission regulations may beseized as evidence of such violation. All permit holders consent to thesearches and seizures authorized by this subdivision, including breath, bloodand urine sampling for alcohol and illegal drugs, by accepting the permitissued by the Commission. The Commission may revoke or suspend the permit ofany person who fails or refuses to comply with this subdivision or any rulesof the Commission. Commission regulations in effect on July 1, 1998, shallcontinue in full force and effect until modified by the Commission inaccordance with law.
14. The Commission shall require the existence of a contract between thelicensee and the recognized majority horseman's group providing for pursesand prizes. Such contract shall be subject to the approval of the Commission,which shall have the power to approve or disapprove any of its items,including but not limited to the provisions regarding purses and prizes. Suchcontracts shall provide that on pools generated by wagering on simulcasthorse racing from outside the Commonwealth, (i) for the first $75 million ofthe total pari-mutuel handle for each breed, the licensee shall deposit fundsat the minimum rate of five percent in the horsemen's purse account, (ii) forany amount in excess of $75 million but less than $150 million of the totalpari-mutuel handle for each breed, the licensee shall deposit funds at theminimum rate of six percent in the horsemen's purse account, (iii) foramounts in excess of $150 million for each breed, the licensee shall depositfunds at the minimum rate of seven percent in the horsemen's purse account.Such deposits shall be made in the horsemen's purse accounts of the breedthat generated the pools and such deposits shall be made within five daysfrom the date on which the licensee receives wagers.
15. Notwithstanding the provisions of § 59.1-391, the Commission may grantprovisional limited licenses or provisional unlimited licenses to own oroperate racetracks or satellite facilities to an applicant prior to theapplicant securing the approval through the local referendum required by §59.1-391. The provisional licenses issued by the Commission shall only becomeeffective upon the approval of the racetrack or satellite wagering facilitiesin a referendum conducted pursuant to § 59.1-391 in the jurisdiction in whichthe racetrack or satellite wagering facility is to be located.
(1988, c. 855; 1990, c. 271; 1991, c. 591; 1992, c. 820; 1993, c. 430; 1998,cc. 619, 845; 2000, cc. 99, 1031; 2003, c. 682; 2004, c. 774; 2005, cc. 633,700; 2007, c. 757; 2009, c. 142.)