Administrative Code

Virginia Administrative Code
11/24/2020

Chapter 30. Limited Licenses

11VAC10-30-10. Definitions.

The following words and terms, when used in these regulations, shall have the following meaning, unless the context clearly indicates otherwise:

"Commission" means the Virginia Racing Commission.

"Licensee" includes any person holding an owner's or operator's license, or any other license issued by the commission.

"Limited license" means a license issued by the commission allowing the holder to conduct a race meeting or meetings, with any calendar year.

"Pari-mutuel wagering" means the system of wagering on horse racing in which those who wager on horses that finish in the position or positions for which wagers are taken share in the total amounts wagered, less deductions required or permitted by law.

"Person" includes a natural person, partnership, joint venture, association or corporation.

"Race meeting" means the whole consecutive period of time during which horse racing with pari-mutuel wagering is conducted by a licensee.

"Significant infrastructure facility" means a horse racing facility that has been approved by a local referendum pursuant to § 59.1-391 of the Code of Virginia and has a minimum racing infrastructure consisting of (i) a one-mile dirt track for flat racing, (ii) a seven-eighths-mile turf course for flat or jump racing, (iii) covered seating for no fewer than 500 persons, and (iv) barns with no fewer than 400 permanent stalls.

"Significant infrastructure limited licensee" means a person who owns or operates a significant infrastructure facility and holds a limited license under § 59.1-376 of the Code of Virginia.

"Totalizator" means an electronic data processing system for registering wagers placed on the outcomes of horse racing, deducting the retainage, calculating the mutuel pools and returns to ticket holders, and displaying approximate odds and payouts, including machines utilized in the sale and cashing of wagers.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-02-04 § 1, eff. December 19, 1990; amended, Volume 31, Issue 25, eff. September 9, 2015.

11VAC10-30-20. Generally.

A. The commission is authorized to issue limited licenses for the promotion, sustenance and growth of a native industry, in a manner consistent with the health, safety and welfare of the people. The horse racing, with pari-mutuel wagering privileges, shall be conducted by limited licensees so as to maintain horse racing in the Commonwealth of Virginia of the highest quality and free of any corrupt, incompetent, dishonest or unprincipled practices and to maintain in horse racing complete honesty and integrity.

B. Number of racing days. The commission may issue limited licenses to conduct horse race meetings, with pari-mutuel wagering privileges on races held at the site, for a period not to exceed 14 days in any calendar year or in the case of a significant infrastructure limited licensee, 75 days in any calendar year.

C. Local referendum. The commission shall not grant a limited license to conduct a horse race meeting, with pari-mutuel wagering privileges, until a referendum approving the question is held in the county or city in which the race meeting is to be conducted; however, the commission may, in accordance with § 59.1-378.1 of the Code of Virginia, grant a limited license to the owner or operator of a facility to conduct pari-mutuel wagering on Thoroughbred and Standardbred race meetings and simulcast horse racing at that facility in conjunction with the race meetings for a period not to exceed 14 days in any calendar year if the facility has been approved by the commission and the owner or operator of such facility has been granted tax-exempt status under § 501(c)(3) or (4) of the Internal Revenue Code.

D. Observance of regulations. The holder of a limited license shall be charged with the same duties and responsibilities as are the holders of unlimited licenses with respect to the observance and enforcement of Chapter 29 (§ 59.1-364 et seq.) of Title 59.1 of the Code of Virginia and the regulations of the commission.

E. Racing surfaces. The holders of limited licenses shall utilize racing surfaces which are safe and humane for participants and meet generally accepted standards for the type of racing being conducted.

F. Renewal of limited licenses. Limited licenses are valid for one calendar year during which the licensee may conduct as many as 14 days of horse racing with pari-mutuel wagering privileges or in the case of a significant infrastructure limited licensee, 75 days in any calendar year. A licensee may apply for a renewal of a limited license by submitting an application to the commission as set forth in 11VAC10-30-30 of this chapter. An applicant for a renewal of a limited license may incorporate by reference any information submitted in previous applications.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-02-04 § 2, eff. December 19, 1990; amended, Volume 29, Issue 04, eff. November 1, 2012; Volume 31, Issue 25, eff. September 9, 2015.

11VAC10-30-30. Application for a limited license.

A. Where to file application. An applicant for a limited license shall submit an application on a form, prepared by the commission, to the main office of the commission no later than September 1, excluding Saturdays, Sundays or holidays, for the following calendar year. The commission may, in its discretion, extend the deadline to receive applications.

1. An application to be sent by certified mail shall be addressed to:

Executive Secretary
Virginia Racing Commission
Post Office Box 1123
Richmond, VA 23218

2. An application to be hand-delivered shall be delivered to the Executive Secretary, Virginia Racing Commission at the commission's office in Richmond, Virginia.

3. An application delivered by hand or by certified mail will be timely only if received at the main office of the commission by 5 p.m. on or before the date prescribed or the extended deadline.

4. Delivery to other than the commission's main office is not acceptable.

5. The licensee assumes full responsibility for the method chosen to deliver the request.

B. Identification of applicant for limited license. An application for a limited license shall include the name, address and telephone number of the applicant, and the name, position, address, telephone number and authorized signature of an individual to whom the commission may make inquiry.

C. Applicant's affidavit. An application for a limited license shall include an affidavit from the chief executive officer, director, officer or other participant in the applicant setting forth:

1. That application is made for a limited license to conduct a horse race meeting, with pari-mutuel wagering privileges, for a period not to exceed 14 days in any calendar year or in the case of a significant infrastructure limited licensee, 75 days in any calendar year;

2. That the affiant is the agent of the applicant, its owners, partners, members, directors, officers and personnel, and is duly authorized to make the representations in the application on their behalf. Documentation of the authority must be attached (Identify attached exhibit number);

3. That the applicant seeks a grant of privilege from the Commonwealth of Virginia, and the burden of proving the applicant's qualifications rests at all times with the applicant;

4. That the applicant consents to inquiries by the Commonwealth of Virginia, its employees, commission members, staff and agents, into the financial, character and other qualifications of the applicant by contacting individuals and organizations;

5. That the applicant, its owners, partners, members, directors, officers and personnel accept any risk of adverse public notice, embarrassment, criticism or other circumstance, including financial loss, which may result from action with respect to the application and expressly waive any claim which otherwise could be made against the Commonwealth of Virginia, its employees, the commission, and its staff or agents;

6. That the affiant has read the application and knows the contents; the contents are true to the affiant's own knowledge, except matters therein stated as information and belief, and that as to those matters, the affiant believes them to be true;

7. That the applicant recognizes all representations in the application are binding, and false or misleading information in the application, omission of required information, or substantial deviation from representations in the application may result in denial, revocation, suspension or conditioning of a license or imposition of a fine, or any or all of the foregoing;

8. That the applicant will comply with all applicable state and federal statutes and regulations, all regulations of the commission and all other local ordinances;

9. The affiant's signature, name, organization, position, address and telephone number; and

10. The date.

D. Disclosure of ownership and control. An applicant for a limited license must disclose the type of organizational structure of the applicant, whether individual, business corporation, nonprofit corporation, partnership, joint venture, trust, association or other.

1. If the applicant is an individual, the applicant shall disclose his legal name, whether the applicant is a United States citizen, and any aliases and business or trade names currently or previously used.

2. If the applicant is a corporation, the applicant shall disclose the applicant's full corporate name, any trade names currently or previously used; jurisdiction of incorporation, date of incorporation, and the date the applicant began doing business in the Commonwealth of Virginia. In addition, the applicant shall include:

a. A copy of the applicant's certificate of authority to do business in Virginia;

b. A copy of the applicant's articles of incorporation;

c. A description of the general nature of the applicant's business; and

d. A list of the names, in alphabetical order, and addresses of the directors, and in a separate list, the names and addresses, in alphabetical order, of the officers of the applicant.

3. If the applicant is an organization other than a corporation, the applicant shall disclose the applicant's full name, any aliases, business or trade names currently or previously used; the jurisdiction of organization; the date the applicant began doing business in Virginia; and the general nature of the applicant's business. In addition, the applicant shall include:

a. Copies of any agreements creating or governing the applicant's organization; and

b. The names, in alphabetical order, and addresses of any partners and officers of the applicant and other persons who have or share policymaking authority.

4. If the applicant is a tax exempt organization, the applicant shall submit copies of documentation from the Internal Revenue Service granting tax exempt status.

E. Disclosure of character information. An applicant for a limited license shall disclose and furnish particulars as follows whether the applicant or any individual identified in subsection D of this section has:

1. Been charged in any criminal proceeding other than a traffic violation. If so, the applicant shall disclose the nature of the charge, the date charged, court and disposition;

2. Had a horse racing, gambling, business, professional or occupational license or permit revoked or suspended or renewal denied or been a party in a proceeding to do so. If so, the applicant shall disclose the date of commencement, circumstances and disposition; and

3. Begun an administrative or judicial action against a governmental regulator of horse racing or gambling. If so, the applicant shall disclose the date of commencement, forum, circumstances and disposition.

F. Disclosure of site and facilities. An applicant for a limited license shall disclose the following concerning the site and facilities where horse racing will be conducted with pari-mutuel wagering privileges:

1. The location of the horse racing facility including street address, municipality where the facility is located and the county in which the facility is located;

2. The present ownership of the horse racing facility;

3. If the applicant leases the site of the horse racing facility, the applicant shall submit copies of any leasing agreement, and any other arrangements for the use of the facility between the applicant and the owner of the facility;

4. The type or types of racing to be offered, the number of races to be run each day, the post time of the first race each day, type of pari-mutuel pools to be offered, and any organization that is sanctioning the races;

5. A description of the post-race detention facilities and sample collection arrangements;

6. A description of the totalizator, including vendor and manufacturer, if known;

7. A description of starting, timing, photo finish and photo patrol or video equipment, including vendor and manufacturer, if known; and

8. A description of the work areas for stewards and patrol judges.

G. Disclosure of governmental actions. An applicant for a limited license shall disclose whether the applicant is in compliance with all state statutes, local charter provisions, local ordinances, and street and local regulations pertaining to the development, ownership and operation of its horse racing facility. If the applicant is not in compliance, the applicant shall disclose the reasons why the applicant is not in compliance and summarize plans to obtain compliance.

H. Disclosure of management. An applicant for a limited license shall disclose its management personnel by listing the names of the personnel and their titles.

I. Disclosure of safety and security plan. An applicant for a limited license shall describe the safety and security plan for the horse racing facility in regards to the procedures for accepting and cashing wagers, detention facility and participants.

J. Effects on competition. An applicant for a limited license shall make a brief statement indicating why its racing days will not be harmful to other limited or unlimited licenses issued by the Virginia Racing Commission.

K. Personal information and authorization for release. An applicant for a limited license shall include the following with respect to each individual identified as an applicant, partner, director, officer, policymaker or management personnel in subsection D or H of this section:

1. Full name, business and residence addresses and telephone numbers, date of birth, place of birth, social security number, if the individual is willing to provide it;

2. An authorization for release of personal information, on a form prepared by the commission, signed by the individual and providing that he:

a. Authorizes a review by, and full disclosure to, an agent of the Virginia State Police, of all records concerning the individual;

b. Recognizes the information reviewed or disclosed may be used by the Commonwealth of Virginia, its employees, the commission, members, staff and agents to determine the signer's qualifications for a license; and

c. Release authorized providers and users of the information from any liability under state or federal data privacy statutes.

L. Additional information. Upon receipt of a properly completed application for a limited license, the commission may, in its discretion, require any further information from the applicant that it deems necessary for a full understanding and evaluation of the application.

M. Amendment of application. An applicant for a limited license may amend a properly completed and properly submitted application to the commission.

N. Application fee. An applicant for a limited license as provided for in § 59.1-376 of the Code of Virginia shall submit a nonrefundable application fee to the commission's designee at the time of application by a certified check or bank draft to the order of the Commonwealth of Virginia in the amount of $100 per number of racing days requested. The applicant also shall pay the costs of background investigations conducted by the Virginia State Police of the persons enumerated in subsections D and H of this section.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-02-04 § 3, eff. December 19, 1990; amended, Volume 31, Issue 25, eff. September 9, 2015.

11VAC10-30-40. License criteria.

A. Determination by commission. The commission may issue a limited license if it determines on the basis of all the facts before it that:

1. Issuance of a license will not adversely affect the horse racing industry in the Commonwealth of Virginia or the public interest;

2. The horse racing facility will be operated in accordance with all applicable state and federal statutes and regulations, regulations of the commission and all local ordinances; and

3. The issuance of a limited license to the applicant will not adversely affect the public health, safety and welfare.

B. Consideration of application. The commission, in determining whether the issuance of a limited license is in the public interest, shall consider the following factors:

1. The integrity of the applicant, including:

a. Criminal record;

b. Involvement in proceedings in which government regulation of horse racing or gambling was an issue; and

c. Any other factors related to integrity which the commission deems crucial to its decision making, as long as the same factors are considered with regard to all applicants.

2. The quality of physical improvements and equipment in the applicant's facility, including:

a. Detention facility;

b. Totalizator;

c. Starting, timing, photo finish, photo patrol or video equipment; and

d. Any other factors related to quality which the commission deems crucial to its decision making, as long as the same factors are considered with regard to all applicants.

3. Status of governmental actions required for the applicant's facility, including:

a. Required governmental approvals for the operation of the horse racing facility; and

b. Any other factors related to status of governmental actions which the commission deems crucial to its decision making as long as the same factors are considered with regard to all applicants.

4. The qualifications of the applicant's managers and any other factors related to management ability which the commission deems crucial to its decision making as long as the same factors are considered with regard to all applicants.

5. Compliance with applicable statutes, charters, ordinances or regulations.

6. Efforts to promote an orderly growth of horse racing in Virginia and educate the public with respect to horse racing and pari-mutuel wagering.

7. Effects on competition, including:

a. Number, nature and relative location of other licensees;

b. Minimum and optimum number of racing days sought by the applicant; and

c. Any other factors of the impact of competition which the commission deems crucial to decision making as long as the same factors are considered with regard to all applicants.

8. The commission shall also consider any other information that the applicant discloses or that is relevant and helpful to a proper determination.

C. Issuance of limited license. In issuing a limited license to an applicant, the commission shall designate in writing the location of the facility where the horse racing, with pari-mutuel wagering privileges, shall take place, the total number of racing days assigned, the dates within which the racing days are to be conducted and dark days, the breed or breeds to be utilized, the type or types of racing to be offered, and the hours of racing.

D. Denial of request final. The denial of a request by the commission shall be final unless appealed by the applicant or licensee.

E. Transfer or acquisition of an interest in a limited license. A holder of a limited license may apply to the commission to transfer its race meet or meetings to that of another horse racing facility already licensed by the commission under the provisions of 11VAC10-20-240.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-02-04 § 4, eff. December 19, 1990.

11VAC10-30-50. Limited license criteria.

A. The holder of a limited license shall conduct horse racing at a facility for the promotion, sustenance and growth of a native industry in a manner consistent with health, safety and welfare.

B. The adequacy and sufficiency with which the licensee meets the following criteria shall rest with the commission:

1. Each licensee shall accept, observe and enforce all federal and state laws, regulations of the commission and local ordinances;

2. Each licensee shall ensure that its grounds and facility are neat and clean, painted and in good repair, with special consideration for the comfort and safety of the public, employees, other persons whose business requires their attendance, and for the health and safety of the horses there stabled;

3. Each licensee shall honor commission exclusions from the horse racing facility and shall eject immediately any person found in the facility who has been excluded by the commission. The licensee shall make a report to the commission of each person who is ejected from the facility;

4. Each licensee shall provide uniformed security personnel in the areas where pari-mutuel wagering is conducted so that money and pari-mutuel tickets may be safeguarded, decorum maintained and public safety protected;

5. Each licensee shall provide a starting gate or starting apparatus that is appropriate to the type of racing being offered, sufficient, trained outriders, and timing devices or trained personnel to manually time the races and provide fractional times as deemed appropriate;

6. Each licensee shall provide a photo-finish camera and an area where photo-finish prints may be displayed to the public. The photo-finish camera and the personnel operating the camera shall be under the supervision of the stewards;

7. Each licensee shall provide a totalizator where wagers are recorded, pools calculated, approximate odds displayed visibly to the general public in the infield at periodic intervals during the wagering and with the payouts on winning tickets are displayed;

8. Each licensee shall provide an adequate number of ambulances and emergency medical services for participants and public during those hours when horse racing is conducted. At no time will horse racing be permitted unless there is at least one ambulance at the facility;

9. Each licensee shall provide at least one veterinarian to administer and provide emergency service to any horse participating in the racing program;

10. Each licensee shall provide a detention facility where samples of blood, saliva, urine and other substances can be collected from horses following racing. The commission may, in its discretion, authorize the commission veterinarian and his assistants to collect samples from horses following racing in their stalls; and

11. Each licensee shall coordinate its fire, safety and security plans with local fire and police agencies so that the public health and safety may be protected.

C. The following limited license application, regulations and guidelines are developed to implement the filing of applications pursuant to § 59.1-376 of the Code of Virginia. The applicant or its designated representative shall execute all sections of this application unless otherwise provided.

1. False or misleading information in a license application, omission of required information or substantial deviation from representation in the application is cause for denial, revocation or suspension of a license or imposition of a fine.

2. The applicant shall provide all information required to be disclosed.

3. The applicant shall provide only information relevant to disclosures required by the Virginia Racing Commission.

4. Upon filing the application, the applicant shall provide the following:

a. A letter of transmittal to the Virginia Racing Commission;

b. An original and six copies of the application, in sealed envelopes; and

c. Any exhibits and attachments to the application.

5. The applicant shall file with the application a disclosure statement on the form attached hereto (original and six copies) for itself and for each officer, director, partner, policymaker and owner or holder of 5.0% or more of the legal or beneficial ownership interest in the applicant. If 25% or more of the applicant is owned by another entity, disclosure statements shall be filed by the officers, directors, partners and policymakers of the other entity and the owner or holders of 10% or more of the legal or beneficial ownership interest in the other entity. This disclosure shall continue through as many tiers as necessary to disclose the ultimate owners or holders of 5.0% or more of the legal or beneficial ownership interest in the applicant. A person having an interest subject to disclosure in more than one applicant shall file one set of disclosure statements for each application. Each disclosure statement shall be attached to the application as an exhibit.

6. Upon request of the Virginia Racing Commission, the applicant shall provide copies of any documents used in the preparation of its application or any other documents the commission requests.

7. Each disclosure required in the application shall be provided in printed or typewritten form on 8½ by 11 inch paper.

8. Each page shall be sequentially numbered including exhibits and attachments.

9. All disclosures shall be submitted in the order that they are presented in the application.

10. If the applicant elects not to utilize this application form, then the applicant shall restate the question and the question number, immediately preceding each response.

11. All documents which are part of the application shall be submitted as a bound single assemblage (unless multiple volumes are necessary) with each disclosure section, exhibit or other attachment identified and separated by tabs.

12. An applicant shall provide photographs of any three-dimensional exhibits.

13. If a question is inappropriate or not applicable, indicate "N.A." on the application.

14. If additional forms are required, the applicant may detach the form and make as many copies as necessary.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-02-04 § 5, eff. December 19, 1990.

FORMS (11VAC10-30).

Limited License Application (eff. 12/1990)

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