                                 CODE OF VIRGINIA

ISSUANCE OF OWNER&#8217;S LICENSE (§ 59.1-378)

A. The Commission shall consider all applications for an owner&#8217;s license
and may grant a valid owner&#8217;s license to applicants who meet the criteria
set forth in this chapter and established by the Commission. The Commission
shall deny a license to any applicant unless it finds that the applicant&#8217;s
facilities are or will be appropriate for the finest quality of racing.

B. The Commission shall deny a license to an applicant if it finds that for any
reason the issuance of a license to the applicant would not be in the interest
of the people of the Commonwealth or the horse racing industry in the
Commonwealth, or would reflect adversely on the honesty and integrity of the
horse racing industry in the Commonwealth, or that the applicant, or any
officer, partner, principal stockholder, or director of the applicant:

   1. Has knowingly made a false statement of material fact or has deliberately
   failed to disclose any information requested;

   2. Is or has been found guilty of any illegal, corrupt, or fraudulent act,
   practice, or conduct in connection with any horse racing in this or any other
   state, or has been convicted of a felony;

   3. Has at any time knowingly failed to comply with the provisions of this
   chapter or of any regulations of the Commission;

   4. Has had a license or permit to hold or conduct a horse race meeting denied
   for just cause, suspended, or revoked in any other state or country;

   5. Has legally defaulted in the payment of any obligation or debt due to the
   Commonwealth;

   6. Has constructed or caused to be constructed a racetrack or satellite
   facility for which a license was required under &#xA7; 59.1-377 hereof without
   obtaining such license, or has deviated substantially, without the permission
   of the Commission, from the plans and specifications submitted to the
   Commission; or

   7. Is not qualified to do business in Virginia or is not subject to the
   jurisdiction of the courts of this Commonwealth.

C. The Commission shall deny a license to any applicant unless it finds:

   1. That, if the corporation is a stock corporation, that such stock is fully
   paid and nonassessable, has been subscribed and paid for only in cash or
   property to the exclusion of past services, and, if the corporation is a
   nonstock corporation, that there are at least twenty members;

   2. That all principal stockholders or members have submitted to the
   jurisdiction of the Virginia courts, and all nonresident principal
   stockholders or members have designated the Executive Secretary of the
   Commission as their agent for receipt of process;

   3. That the applicant&#8217;s articles of incorporation provide that the
   corporation may, on vote of a majority of the stockholders or members,
   purchase at fair market value the entire membership interest of any
   stockholder or require the resignation of any member who is or becomes
   unqualified for such position under &#xA7; 59.1-379; and

   4. That the applicant meets the criteria established by the Commission for the
   granting of an owner&#8217;s license.

HISTORY: 1988, c. 855; 1990, c. 206; 1992, c. 820; 2015, cc. 731, 751.