                                 CODE OF VIRGINIA

LIVE HORSERACING COMPACT; FORM OF COMPACT (§ 59.1-394.1)

The Live Horseracing Compact is enacted into law and entered into with all other
jurisdictions legally joining therein in the form substantially as follows:
		ARTICLE I. Purposes.
		§ 1. Purposes.
		The purposes of this compact are to:

1. Establish uniform requirements among the party states for the licensing of
participants in live horse racing with pari-mutuel wagering, and ensure that all
such participants who are licensed pursuant to this compact meet a uniform
minimum standard of honesty and integrity.

2. Facilitate the growth of the horse racing industry in each party state and
nationwide by simplifying the process for licensing participants in live racing,
and reduce the duplicative and costly process of separate licensing by the
regulatory agency in each state that conducts live horse racing with pari-mutuel
wagering.

3. Authorize the Virginia Racing Commission to participate in this compact.

4. Provide for participation in this compact by officials of the party states,
and permit those officials, through the compact committee established by this
compact, to enter into contracts with governmental agencies and nongovernmental
persons to carry out the purposes of this compact.

5. Establish the compact committee created by this compact as an interstate
governmental entity duly authorized to request and receive criminal history
record information from the Federal Bureau of Investigation and other state and
local law-enforcement agencies.
			ARTICLE II. Definitions.
			&#xA7; 2. Definitions.
			&#8220;Compact committee&#8221; means the organization of officials from the
party states that is authorized and empowered by this compact to carry out the
purposes of this compact.
			&#8220;Official&#8221; means the appointed, elected, designated or otherwise
duly selected representative of a racing commission or the equivalent thereof in
a party state who represents that party state as a member of the compact
committee.
			&#8220;Participants in live racing&#8221; means participants in live horse
racing with pari-mutuel wagering in the party states.
			&#8220;Party state&#8221; means each state that has enacted this compact.
			&#8220;State&#8221; means each of the several states of the United States,
the District of Columbia, the Commonwealth of Puerto Rico and each territory or
possession of the United States.
			ARTICLE III. Entry into Force, Eligible Parties and Withdrawal.
			&#xA7; 3. Entry into force.
			This compact shall come into force when enacted by any four states.
Thereafter, this compact shall become effective as to any other state upon (i)
that state&#8217;s enactment of this compact and (ii) the affirmative vote of a
majority of the officials on the compact committee as provided in &#xA7; 8.
			&#xA7; 4. States eligible to join compact.
			Any state that has adopted or authorized horse racing with pari-mutuel
wagering shall be eligible to become party to this compact.
			&#xA7; 5. Withdrawal from compact and impact thereof on force and effect of
compact.
			Any party state may withdraw from this compact by enacting a statute
repealing this compact, but no such withdrawal shall become effective until the
head of the executive branch of the withdrawing state has given notice in
writing of such withdrawal to the head of the executive branch of all other
party states. If as a result of withdrawals participation in this compact
decreases to less than three party states, this compact no longer shall be in
force and effect unless and until there are at least three or more party states
again participating in this compact.
			ARTICLE IV. Compact Committee.
			&#xA7; 6. Compact committee established.
			There is hereby created an interstate governmental entity to be known as the
&#8220;compact committee,&#8221; which shall be comprised of one official from
the racing commission or its equivalent in each party state who shall be
appointed, serve and be subject to removal in accordance with the laws of the
party state he represents. Pursuant to the laws of his party state, each
official shall have the assistance of his state&#8217;s racing commission or the
equivalent thereof in considering issues related to licensing of participants in
live racing and in fulfilling his responsibilities as the representative from
his state to the compact committee. If an official is unable to perform any duty
in connection with the powers and duties of the compact committee, the racing
commission or equivalent thereof from his state shall designate an alternate who
shall serve in his place and represent the party state as its official on the
compact committee until that racing commission or equivalent thereof determines
that the original representative official is able once again to perform his
duties as that party state&#8217;s representative official on the compact
committee. The designation of an alternate shall be communicated by the affected
state&#8217;s racing commission or equivalent thereof to the compact committee
as the committee&#8217;s bylaws may provide.
			&#xA7; 7. Powers and duties of compact committee.
			In order to carry out the purposes of this compact, the compact committee is
hereby granted the power and duty to:

1. Determine which categories of participants in live racing, including but not
limited to owners, trainers, jockeys, grooms, mutuel clerks, racing officials,
veterinarians, and farriers, and which categories of equivalent participants in
live racing with pari-mutuel wagering authorized in two or more of the party
states, should be licensed by the committee, and establish the requirements for
the initial licensure of applicants in each such category, the term of the
license for each category, and the requirements for renewal of licenses in each
category. Provided, however, that with regard to requests for criminal record on
the issuance or renewal of a license, the compact committee shall determine for
each category of participants in live racing which licensure requirements for
that category are, in its judgment, the most restrictive licensure requirements
of any party state for that category and shall adopt licensure requirements for
that category that are, in its judgment, comparable to those most restrictive
requirements.

2. Investigate applicants for a license from the compact committee and, as
permitted by federal and state law, gather information on such applicants,
including criminal history record information from the Federal Bureau of
Investigation and relevant state and local law-enforcement agencies, and, where
appropriate, from the Royal Canadian Mounted Police and law-enforcement agencies
of other countries, necessary to determine whether a license should be issued
under the licensure requirements established by the committee as provided in
paragraph 1 of this section. Only officials on, and employees of, the compact
committee may receive and review such criminal history record information, and
those officials and employees may use that information only for the purposes of
this compact. No such official or employee may disclose or disseminate such
information to any person or entity other than another official or employee of
the compact committee. The fingerprints of each applicant for a license from the
compact committee shall be taken by the compact committee, its employees, or its
designee and, pursuant to Public Law 92-544 or Public Law 100-413, shall be
forwarded to a state identification bureau, or an association of state officials
regulating pari-mutuel wagering designated by the Attorney General of the United
States, for submission to the Federal Bureau of Investigation for a criminal
history record check. Such fingerprints may be submitted on a fingerprint card
or by electronic or other means authorized by the Federal Bureau of
Investigation or other receiving law-enforcement agency.

3. Issue licenses to, and renew the licenses of, participants in live racing
listed in paragraph 1 of this section who are found by the committee to have met
the licensure and renewal requirements established by the committee. The compact
committee shall not have the power or authority to deny a license. If it
determines that an applicant will not be eligible for the issuance or renewal of
a compact committee license, the compact committee shall notify the applicant
that it will not be able to process his application further. Such notification
does not constitute and shall not be considered to be the denial of a license.
Any such applicant shall have the right to present additional evidence to, and
to be heard by, the compact committee, but the final decision on issuance or
renewal of the license shall be made by the compact committee using the
requirements established pursuant to paragraph 1 of this section.

4. Enter into contracts or agreements with governmental agencies and with
nongovernmental persons to provide personal services for its activities and such
other services as may be necessary to effectuate the purposes of this compact.

5. Create, appoint, and abolish those offices, employments, and positions,
including an executive director, as it deems necessary for the purposes of this
compact, prescribe their powers, duties and qualifications, hire persons to fill
those offices, employments and positions, and provide for the removal, term,
tenure, compensation, fringe benefits, retirement benefits and other conditions
of employment of its officers, employees and other positions.

6. Borrow, accept, or contract for the services of personnel from any state, the
United States, or any other governmental agency, or from any person, firm,
association, corporation or other entity.

7. Acquire, hold, and dispose of real and personal property by gift, purchase,
lease, license, or in other similar manner, in furtherance of the purposes of
this compact.

8. Charge a fee to each applicant for an initial license or renewal of a
license.

9. Receive other funds through gifts, grants and appropriations.
			§ 8. Voting requirements.

   A. Each official shall be entitled to one vote on the compact committee.

   B. All action taken by the compact committee with regard to the addition of
   party states as provided in &#xA7; 3, the licensure of participants in live
   racing, and the receipt and disbursement of funds shall require a majority
   vote of the total number of officials (or their alternates) on the committee.
   All other action by the compact committee shall require a majority vote of
   those officials (or their alternates) present and voting.

   C. No action of the compact committee may be taken unless a quorum is present.
   A majority of the officials (or their alternates) on the compact committee
   shall constitute a quorum.
   				&#xA7; 9. Administration and management.

   A. The compact committee shall elect annually from among its members a
   chairman, a vice-chairman, and a secretary/treasurer.

   B. The compact committee shall adopt bylaws for the conduct of its business by
   a two-thirds vote of the total number of officials (or their alternates) on
   the committee at that time and shall have the power by the same vote to amend
   and rescind such bylaws. The committee shall publish its bylaws in convenient
   form and shall file a copy thereof and a copy of any amendments thereto with
   the secretary of state or equivalent agency of each of the party states.

   C. The compact committee may delegate the day-to-day management and
   administration of its duties and responsibilities to an executive director and
   his support staff.

   D. Employees of the compact committee shall be considered governmental
   employees.
   				&#xA7; 10. Immunity from liability for performance of official
   responsibilities and duties.
   				No official of a party state or employee of the compact committee shall be
   held personally liable for any good faith act or omission that occurs during
   the performance and within the scope of his responsibilities and duties under
   this compact.
   				ARTICLE V. Rights and Responsibilities of Each Party State.
   				&#xA7; 11. Rights and responsibilities of each party state.

   A. By enacting this compact, each party state:

1. Agrees (i) to accept the decisions of the compact committee regarding the
issuance of compact committee licenses to participants in live racing pursuant
to the committee&#8217;s licensure requirements and (ii) to reimburse or
otherwise pay the expenses of its official representative on the compact
committee or his alternate.

2. Agrees not to treat a notification to an applicant by the compact committee
under paragraph 3 of &#xA7; 7 that the compact committee will not be able to
process his application further as the denial of a license, or to penalize such
an applicant in any other way based solely on such a decision by the compact
committee.

3. Reserves the right (i) to charge a fee for the use of a compact committee
license in that state, (ii) to apply its own standards in determining whether,
on the facts of a particular case, a compact committee license should be
suspended or revoked, (iii) to apply its own standards in determining licensure
eligibility, under the laws of that party state, for categories of participants
in live racing that the compact committee determines not to license and for
individual participants in live racing who do not meet the licensure
requirements of the compact committee, and (iv) to establish its own licensure
standards for the licensure of nonracing employees at horse racetracks and
employees at separate satellite wagering facilities. Any party state that
suspends or revokes a compact committee license shall, through its racing
commission or the equivalent thereof or otherwise, promptly notify the compact
committee of that suspension or revocation.

   B. No party state shall be held liable for the debts or other financial
   obligations incurred by the compact committee.
   				ARTICLE VI. Construction and Severability.
   				&#xA7; 12. Construction and severability.
   				This compact shall be liberally construed so as to effectuate its
   purposes. The provisions of this compact shall be severable, and, if any
   phrase, clause, sentence or provision of this compact is declared to be
   contrary to the Constitution of the United States or of any party state, or
   the applicability of this compact to any government, agency, person or
   circumstance is held invalid, the validity of the remainder of this compact
   and the applicability thereof to any government, agency, person or
   circumstance shall not be affected thereby. If all or some portion of this
   compact is held to be contrary to the constitution of any party state, the
   compact shall remain in full force and effect as to the remaining party states
   and in full force and effect as to the state affected as to all severable
   matters.

HISTORY: 2000, c. 992; 2003, c. 722.