                                 CODE OF VIRGINIA

POWERS AND DUTIES OF THE COMMISSION (§ 59.1-369)

The Commission shall have all powers and duties necessary to carry out the
provisions of this chapter and to exercise the control of horse racing as set
forth in § 59.1-364. Such powers and duties shall include the following:

1. The Commission is vested with jurisdiction and supervision over all horse
racing licensed under the provisions of this chapter including all persons
conducting, participating in, or attending any race meeting. It shall employ
such persons to be present at race meetings as are necessary to ensure that they
are conducted with order and the highest degree of integrity. It may eject or
exclude from the enclosure or from any part thereof any person, whether or not
he possesses a license or permit, whose conduct or reputation is such that his
presence may, in the opinion of the Commission, reflect on the honesty and
integrity of horse racing or interfere with the orderly conduct of horse racing.

2. The Commission, its representatives, and employees shall visit, investigate,
and have free access to the office, track, facilities, satellite facilities or
other places of business of any license or permit holder, and may compel the
production of any of the books, documents, records, or memoranda of any license
or permit holder for the purpose of satisfying itself that this chapter and its
regulations are strictly complied with. In addition, the Commission may require
any person granted a permit by the Commission and shall require any person
licensed by the Commission, the recognized majority horsemen&#8217;s group, and
the nonprofit industry stakeholder organization recognized by the Commission
under this chapter to produce an annual balance sheet and operating statement
prepared by a certified public accountant approved by the Commission. The
Commission may require the production of any contract to which such person is or
may be a party.

3. The Commission shall promulgate regulations and conditions under which horse
racing with pari-mutuel wagering shall be conducted in the Commonwealth, and all
such other regulations it deems necessary and appropriate to effect the purposes
of this chapter, including a requirement that licensees post, in a conspicuous
place in every place where pari-mutuel wagering is conducted, (i) a sign that
bears a toll-free telephone number for the National Problem Gambling Helpline
and (ii) a sign that bears the toll-free number and website for the illegal
gaming tip line established and administered by the Office of the Gaming
Enforcement Coordinator in the Department of State Police pursuant to &#xA7;
52-54 for members of the public to report concerns about, or suspected instances
of, illegal gaming activities. Such regulations shall include provisions for
affirmative action to assure participation by minority persons in contracts
granted by the Commission and its licensees. Nothing in this subdivision shall
be deemed to preclude private local ownership or participation in any horse
racetrack. Such regulations may include penalties for violations. The
regulations shall be subject to the Administrative Process Act (&#xA7; 2.2-4000
et seq.).

4. The Commission shall promulgate regulations and conditions under which
simulcast horse racing shall be conducted at a licensed horse racetrack or
satellite facility in the Commonwealth and all such other regulations it deems
necessary and appropriate to effect the purposes of this chapter. Such
regulations shall include provisions that all simulcast horse racing shall
comply with the Interstate Horse Racing Act of 1978 (15 U.S.C. &#xA7; 3001 et
seq.) and shall require the holder of a license to schedule no more than 125
live racing days in the Commonwealth each calendar year; however, the Commission
shall have the authority to alter the required number of live racing days in the
event of force majeure. Such regulations shall authorize up to 10 satellite
facilities and restrict majority ownership of satellite facilities to an entity
licensed by the Commission that is a significant infrastructure limited
licensee, or if by August 1, 2015, there is no such licensee or a pending
application for such license, then the nonprofit industry stakeholder
organization recognized by the Commission may be granted licenses to own or
operate satellite facilities. If, however, after the issuance of a license to
own or operate a satellite facility to such nonprofit industry stakeholder
organization, the Commission grants a license to a significant infrastructure
limited licensee pursuant to &#xA7; 59.1-376, then such limited licensee may own
or operate the remaining available satellite facilities authorized in accordance
with this subdivision. In no event shall the Commission authorize any such
entities to own or operate more than a combined total of 10 satellite
facilities. Nothing in this subdivision shall be deemed to preclude private
local ownership or participation in any satellite facility. Except as authorized
pursuant to subdivision 5, wagering on simulcast horse racing shall take place
only at a licensed horse racetrack or satellite facility. For purposes of this
subdivision, &#8220;force majeure&#8221; means an event or events reasonably
beyond the ability of the Commission to anticipate and control. &#8220;Force
majeure&#8221; includes acts of God, incidences of terrorism, war or riots,
labor strikes or civil disturbances, floods, earthquakes, fire, explosions,
epidemics, hurricanes, tornadoes, and governmental actions and restrictions.

5. The Commission shall promulgate regulations and conditions regulating and
controlling advance deposit account wagering. Such regulations shall include (i)
standards, qualifications, and procedures for the issuance of a license to an
entity for the operation of pari-mutuel wagering in the Commonwealth; except
that the Commission shall not issue a license to, and shall revoke the license
of, an entity that, either directly or through an entity under common control
with it, withholds the sale at fair market value to a licensee of simulcast
horse racing signals that such entity or an entity under common control with it
sells to other racetracks, satellite facilities, or advance deposit account
wagering providers located in or outside of the Commonwealth; (ii) provisions
regarding access to books, records, and memoranda, and submission to
investigations and audits, as authorized by subdivisions 2 and 10; and (iii)
provisions regarding the collection of all revenues due to the Commonwealth from
the placing of such wagers. No pari-mutuel wager may be made on or with any
computer owned or leased by the Commonwealth, or any of its subdivisions, or at
any public elementary or secondary school or institution of higher education.
The Commission also shall ensure that, except for this method of pari-mutuel
wagering, all wagering on simulcast horse racing shall take place only at a
licensed horse racetrack or satellite facility.
			Nothing in this subdivision shall be construed to limit the
Commission&#8217;s authority as set forth elsewhere in this section.

6. The Commission may issue subpoenas for the attendance of witnesses before it,
administer oaths, and compel production of records or other documents and
testimony of such witnesses whenever, in the judgment of the Commission, it is
necessary to do so for the effectual discharge of its duties.

7. The Commission may compel any person holding a license or permit to file with
the Commission such data as shall appear to the Commission to be necessary for
the performance of its duties including financial statements and information
relative to stockholders and all others with any pecuniary interest in such
person. It may prescribe the manner in which books and records of such persons
shall be kept.

8. The Commission may enter into arrangements with any foreign or domestic
government or governmental agency, for the purposes of exchanging information or
performing any other act to better ensure the proper conduct of horse racing.

9. The Commission shall report annually on or before March 1 to the Governor and
the General Assembly, which report shall include a financial statement of the
operation of the Commission.

10. The Commission may order such audits, in addition to those required by
&#xA7; 59.1-394, as it deems necessary and desirable.

11. The Commission shall upon the receipt of a complaint of an alleged criminal
violation of this chapter immediately report the complaint to the Attorney
General of the Commonwealth and the State Police for appropriate action.

12. The Commission shall provide for the withholding of the applicable amount of
state and federal income tax of persons claiming a prize or pay-off for a
winning wager and shall establish the thresholds for such withholdings.

13. The Commission, its representatives and employees may, within the enclosure,
stable, or other facility related to the conduct of racing, and during regular
or usual business hours, subject any (i) permit holder to personal inspections,
including alcohol and drug testing for illegal drugs, inspections of personal
property, and inspections of other property or premises under the control of
such permit holder and (ii) horse eligible to race at a race meeting licensed by
the Commission to testing for substances foreign to the natural horse within the
racetrack enclosure or other place where such horse is kept. Any item, document
or record indicative of a violation of any provision of this chapter or
Commission regulations may be seized as evidence of such violation. All permit
holders consent to the searches and seizures authorized by this subdivision,
including breath, blood and urine sampling for alcohol and illegal drugs, by
accepting the permit issued by the Commission. The Commission may revoke or
suspend the permit of any person who fails or refuses to comply with this
subdivision or any rules of the Commission. Commission regulations in effect on
July 1, 1998, shall continue in full force and effect until modified by the
Commission in accordance with law.

14. The Commission shall require the existence of a contract between each
licensee and the recognized majority horsemen&#8217;s group for that licensee.
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 the
provisions regarding purses and prizes. Such contracts shall provide that on
pools generated by wagering on simulcast horse racing from outside the
Commonwealth, (i) for the first $75 million of the total pari-mutuel handle for
each breed, the licensee shall deposit funds at the minimum rate of five percent
in the horsemen&#8217;s purse account, (ii) for any amount in excess of $75
million but less than $150 million of the total pari-mutuel handle for each
breed, the licensee shall deposit funds at the minimum rate of six percent in
the horsemen&#8217;s purse account, (iii) for amounts in excess of $150 million
for each breed, the licensee shall deposit funds at the minimum rate of seven
percent in the horsemen&#8217;s purse account. Such deposits shall be made in
the horsemen&#8217;s purse accounts of the breed that generated the pools and
such deposits shall be made within five days from the date on which the licensee
receives wagers. In the absence of the required contract between the licensee
and the recognized majority horsemen&#8217;s group, the Commission may permit
wagering to proceed on simulcast horse racing from outside of the Commonwealth,
provided that the licensee deposits into the State Racing Operations Fund
created pursuant to &#xA7; 59.1-370.1 an amount equal to the minimum percentage
of the total pari-mutuel handles as required in clauses (i), (ii), and (iii) or
such lesser amount as the Commission may approve. The deposits shall be made
within five days from the date on which the licensee receives wagers. Once a
contract between the licensee and the recognized majority horsemen&#8217;s group
is executed and approved by the Commission, the Commission shall transfer these
funds to the licensee and the horsemen&#8217;s purse accounts.

15. Notwithstanding the provisions of &#xA7; 59.1-391, the Commission may grant
provisional limited licenses or provisional unlimited licenses to own or operate
racetracks or satellite facilities to an applicant prior to the applicant
securing the approval through the local referendum required by &#xA7; 59.1-391.
The provisional licenses issued by the Commission shall only become effective
upon the approval of the racetrack or satellite wagering facilities in a
referendum conducted pursuant to &#xA7; 59.1-391 in the jurisdiction in which
the racetrack or satellite wagering facility is to be located.

16. The Commission or its representatives shall participate in the Problem
Gambling Treatment and Support Advisory Committee established pursuant to &#xA7;
37.2-304 by the Department of Behavioral Health and Developmental Services to
enable collaboration among prevention and treatment providers and operators of
legal gaming in the Commonwealth on efforts to reduce the negative effects of
problem gambling.

17. The Commission shall promulgate regulations requiring, for each calendar
year, any significant infrastructure limited licensee that offers pari-mutuel
wagering on historical horse racing to hold at least one live Thoroughbred horse
racing day, consisting of not less than eight races per day, for every 100
historical horse racing terminals installed at its significant infrastructure
facility together with any satellite facility owned, operated, controlled,
managed, or otherwise directly or indirectly affiliated with such licensee. The
regulations shall require any such significant infrastructure limited licensee
that holds more than one live Thoroughbred horse racing day in accordance with
the provisions of this subdivision to hold at least one of those racing days on
a weekend. The number of historical horse racing terminals installed at a
significant infrastructure facility shall be calculated as of December 31 of the
calendar year in question; however, only historical horse racing terminals that
are fully operational shall be included in such calculation.

HISTORY: 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; 2011, c. 732; 2015, cc. 731, 751; 2023,
cc. 588, 589, 590, 591; 2024, c. 593; 2023, cc. 588, 589; 2025, c. 336.