Part II. Application for a License
11VAC10-40-110. Where to file application.
An applicant for a license to own or operate a satellite facility shall submit an application on a form, prepared by the commission, to the main office of the commission. The application shall be submitted either by certified mail or hand delivered.
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. Delivery to other than the commission's main office is not acceptable.
4. The applicant assumes full responsibility for the method chosen to deliver the application.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.1, eff. March 23, 1994.
11VAC10-40-120. Application fee.
An applicant for a license to own or operate a satellite facility must 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 $500. In the event the cost of the background investigation exceeds the application fee, the applicant must remit the amount of the difference by certified check or bank draft within 10 days after receipt of a bill from the commission.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.2, eff. March 23, 1994.
11VAC10-40-130. Identification of applicant for a license.
An application for a license to own or operate a satellite facility 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.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.3, eff. March 23, 1994.
11VAC10-40-140. Applicant's affidavit.
An application for a license shall include an affidavit from the chief executive officer, director, officer or other participant in the applicant setting forth:
1. That the application is made for a license to own or operate a satellite wagering facility at which pari-mutuel wagering on horse racing is conducted;
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;
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 and the commission 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, 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; as to those matters, the affiant believes them to be true;
7. That the applicant recognizes all representations in the application are binding on it, 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 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 local, state and federal statutes, regulations and ordinances;
9. The affiant's signature, name, organization, position, address, and telephone number; and
10. The date.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.4, eff. March 23, 1994.
11VAC10-40-150. Disclosure of ownership and control.
An applicant must disclose, if not already a licensee of the commission:
1. The type of organizational structure of the applicant, whether individual, business corporation, nonprofit corporation, partnership, joint venture, trust, association, or other;
2. If the applicant is an individual, the applicant's legal name, whether the applicant is a United States citizen, any aliases and business or trade names currently or previously used by the applicant, and copies of all state and federal tax returns for the past five years;
3. If the applicant is a corporation:
a. The applicant's full corporate name and any trade names currently or previously used by the applicant;
b. The jurisdiction and date of incorporation;
c. The date the applicant began doing business in Virginia and a copy of the applicant's certificate of authority to do business in Virginia;
d. Copies of the applicant's articles of incorporation, bylaws, and all state and federal corporate tax returns for the past five years;
e. The general nature of the applicant's business;
f. Whether the applicant is publicly held as defined by the rules and regulations of the Securities and Exchange Commission;
g. The classes of stock of the applicant. As to each class, the number of shares authorized, number of shares subscribed to, number issued, number outstanding, par value per share, issue price, current market price, number of shareholders, terms, position, rights, and privileges must be disclosed;
h. Whether the applicant has any other obligations or securities authorized or outstanding which bear voting rights either absolutely or upon any contingency, the nature thereof, face or par value, number of units authorized, number outstanding, and conditions under which they may be voted;
i. The names, in alphabetical order, and addresses of the directors and, in a separate list, officers of the applicant. The number of shares held of record directly or indirectly by each director and officer as of the application date of each class of stock, including stock options and subscriptions, and units held of record or beneficially of other obligations or securities which bear voting rights must be disclosed;
j. The names, in alphabetical order, and addresses of each recordholder as of the date of application or beneficial owner of shares, including stock options and subscriptions, of the applicant or units of other obligations or securities which bear voting rights. As to each holder of shares or units, the number and class or type of shares or units must be disclosed;
k. Whether the requirements of the Securities Act of 1933 and Securities and Exchange Act of 1934, as amended, and Securities and Exchange Commission rules and regulations have been met in connection with issuance of applicant's securities, and copies of the most recent registration statement and annual report filed with the Securities and Exchange Commission;
l. Whether the securities registration and filing requirements of the applicant's jurisdiction of incorporation have been met, and a copy of the most recent registration statement filed with the securities regulator in that jurisdiction; and
m. Whether the securities registration and filing requirements of the Commonwealth of Virginia have been met. If they have not, the applicant must disclose the reasons why. The applicant must provide copies of all securities filings with Virginia's State Corporation Commission during the past five years;
4. If the applicant is an organization other than a corporation:
a. The applicant's full name and any aliases, business, or trade names currently or previously used by the applicant;
b. The jurisdiction of organization of the applicant;
c. The date the applicant began doing business in Virginia;
d. Copies of any agreements creating or governing the applicant's organization and all of the applicant's state and federal tax returns for the past five years;
e. The general nature of the applicant's business;
f. The names, in alphabetical order, and addresses of any partners and officers of the applicant and other persons who have or share policymaking authority. As to each, the applicant must disclose the nature and extent of any ownership interest, direct or indirect, including options, or other voting interest, whether absolute or contingent, in the applicant; and
g. The names, in alphabetical order, and addresses of any individual or other entity holding a record or beneficial ownership interest, direct or indirect, including options, as of the date of the application, or other voting interest, whether absolute or contingent, in the applicant. As to each, the applicant must disclose the nature and extent of the interest;
5. If a nonindividual record or nonindividual beneficial holder of an ownership or other voting interest of 5.0% or more in the applicant is identified pursuant to subdivision 3 i or j, or subdivision 4 f and g, the applicant shall disclose the information required by those subdivisions as to record or beneficial holders of an ownership or voting interest of 5.0% or more in that nonindividual holder. The commission shall have the right to inquire for further disclosure of the applicant as it deems necessary. When an applicant is unable to provide the information required, it shall explain fully and document its inability to do so;
6. Whether the applicant is directly or indirectly controlled to any extent or in any manner by another individual or entity. If so, the applicant must disclose the identity of the controlling entity and a description of the nature and extent of control;
7. Any agreements or understandings which the applicant or any individual or entity identified pursuant to this section has entered into regarding ownership or operation of the applicant's satellite facility, and copies of any such agreements in writing;
8. Any agreements or understandings which the applicant has entered into for the payment of fees, rents, salaries, or other compensation concerning the proposed satellite facility by the applicant, and copies of any such agreements in writing; and
9. Whether the applicant, any partner, director, officer, other policymaker, or holder of a direct or indirect record or beneficial ownership interest or other voting interest or control of 5.0% or more has held or holds a license or permit issued by any governmental authority to own or operate a horse racing facility, pari-mutuel wagering facility or any other form of gambling or has a financial interest in such an enterprise or conducts any aspect of horse racing or gambling. If so, the applicant must disclose the identity of the license or permit holder, nature of the license or permit, issuing authority, and dates of issuance and termination.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.5, eff. March 23, 1994.
11VAC10-40-160. Disclosure of character information.
Unless the applicant for a license is already a licensee or holder of a permit from the commission, the applicant shall disclose and furnish particulars regarding whether the applicant or any individual or other entity identified pursuant to 11VAC10-40-150 or 11VAC10-40-220 of this chapter or a lease holder of the site of the facility has:
1. Been charged in any criminal proceeding other than in connection with a traffic violation. If so, the applicant must 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 must disclose the date of commencement, circumstances and disposition;
3. Been accused in an administrative or judicial proceeding of violating a statute or regulation relating to horse racing or gambling;
4. Been charged in an administrative or judicial proceeding of violating a statute or regulation relating to unfair labor practices or discrimination;
5. Begun an administrative or judicial action against a governmental regulator of horse racing or gambling. If so, the applicant must disclose the date of commencement, forum, circumstances and disposition;
6. Been the subject of voluntary or involuntary bankruptcy proceedings. If so, the applicant must disclose the date of commencement, forum, circumstances, date of decision and disposition;
7. Failed to satisfy any judgment, decree or order of an administrative or judicial tribunal. If so, the applicant must disclose the date and circumstances; and
8. Been delinquent in filing a tax return required or remitting a tax imposed by any government. If so, the applicant must disclose the date and circumstances.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.6, eff. March 23, 1994.
11VAC10-40-170. Disclosure of site and facilities.
An applicant for a license must disclose with respect to the satellite facility:
1. The address of the facility, ownership of the site for the last three years, legal description, mortgagors, proof of title insurance, its size and geographical location, including reference to county and municipal boundaries;
2. A site map showing parking facilities, highways and streets adjacent to the facility, and separately showing any proposed highways and streets adjacent to the facility that are under construction, including their scheduled completion dates;
3. A description of the satellite facility, including portions of the facility not used for pari-mutuel wagering, giving:
a. Total capacity;
b. Total number of square feet;
c. Dimensions of the facility;
d. Configuration of the viewing, dining and concession facilities with the facility;
e. Approximate location of mutuel windows and cash security areas;
f. Description of the wagering equipment, including vendor and manufacturer, if known; and
g. Preliminary architectural plans of the interior and exterior of the facility, if the proposed facility is to be constructed by the licensee.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.7, eff. March 23, 1994.
11VAC10-40-180. Disclosure of development process.
An applicant for a license may propose to lease, acquire or construct premises for each satellite facility. Such premises may be adjacent to or located within other businesses including but not limited to hotels and restaurants. Further, an applicant for a license must disclose with regard to the development of the satellite facility:
1. If the facility is to be constructed, the total cost of construction of the facility distinguishing between known costs and projected cost;
2. Separate identification of the following costs:
a. Facility design;
b. Site acquisition or rental costs;
c. Satellite reception and video equipment; and
d. Organizational, administrative, accounting and legal.
3. Documentation of the nature of interim financing, if any, and the nature of permanent financing, if any;
4. Documentation of fixed costs;
5. The schedule for construction, acquisition or leasing of the facility, giving, as the case may be:
a. Acquiring or leasing the site;
b. Soliciting bids;
c. Zoning and construction permit approval;
d. Awarding construction contracts;
e. Beginning construction;
f. Completing construction;
g. Training staff; and
h. Beginning of operation;
6. Schematic drawings;
7. Copies of contracts, if any, with performance bonds from the:
a. Architect or other design professional;
b. Project engineer;
c. Construction engineer;
d. Contractors and subcontractors; and
e. Equipment procurement personnel;
8. Whether the site has been acquired or leased by the applicant; and
9. Whether present planning envisions future expansion of the facility.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.8, eff. March 23, 1994.
11VAC10-40-190. Disclosure of financial resources.
An applicant for a license must provide the following with regard to financial resources:
1. Unless the applicant is already the holder of a license from the commission, the applicant shall submit the most recently audited financial statement showing:
a. The applicant's current assets, including investments in affiliated entities, loans and accounts receivable;
b. Fixed assets;
c. Current liabilities, including loans and accounts payable;
d. Long-term debt and equity;
e. Contingent tax liability; and
f. Statement of income and expenses, and statement of cash flow.
2. Equity and debt sources of funds to develop, own and operate a satellite facility:
a. With respect to each source of equity:
(1) Identification of the source;
(2) Amount;
(3) Form;
(4) Method of payment;
(5) Nature and amount of present commitment; and
(6) Documentation, copies of agreements and actions which the applicant will take to obtain commitments for additional amounts.
b. With respect to each source of debt:
(1) Identification of the source;
(2) Amount;
(3) Terms of debt;
(4) Collateral;
(5) Identity of guarantors;
(6) Nature and amount of commitments; and
(7) Documentation, copies of agreements and actions the applicant will take to obtain commitments for additional amounts.
3. Identification and description of sources of additional funds needed due to cost overruns, nonreceipt of expected equity or debt funds, failure to achieve projected revenues or other cause.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.9, eff. March 23, 1994.
11VAC10-40-200. Disclosure of financial plan.
An applicant for a license shall submit detailed financial projections for the operation of the satellite facility at the location that includes financing and income, expenses, profits or losses. The applicant shall include projections for purse money, the Virginia Breeders Fund, revenue to the Commonwealth and localities. The applicant shall also include the basis for the projections.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.10, eff. March 23, 1994.
11VAC10-40-210. Disclosure of governmental actions.
An applicant for a license must disclose whether it is in compliance with all state statutes, local charter provisions, local ordinances, and state and local regulations pertaining to the development, ownership and operation of the satellite facility. If the applicant is not in compliance, the applicant must disclose the reasons why the applicant is not in compliance and summarize plans to obtain compliance.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.11, eff. March 23, 1994.
11VAC10-40-220. Disclosure of management.
An applicant for a license must disclose with regard to the management of the satellite facility:
1. A description of the applicant's management plan, with budget and identification of management personnel by function, job description and qualifications for each management position, and a copy of the organization chart;
2. Management personnel to the extent known and with respect to each:
a. Legal name, alias or aliases and previous name or names;
b. Current residence and business addresses and telephone numbers;
c. Qualifications and experience in the following areas:
(1) General business;
(2) Marketing, promotion and advertising;
(3) Finance and accounting;
(4) Horse racing;
(5) Pari-mutuel wagering;
(6) Security; and
(7) Operation of satellite wagering facilities;
d. Description of the terms and conditions of employment and each applicant upon request shall provide to the commission a copy of each form of agreement;
3. Consultants and other contractors who have provided or will provide management-related services to the applicant and with respect to each:
a. Full name;
b. Current address and telephone number;
c. Nature of services;
d. Qualifications and experience; and
e. Description of terms and conditions of each contractor's agreement and a copy of the agreement;
4. Memberships of the applicant, management personnel and consultants in horse racing organizations;
5. Description of the applicant's marketing, promotion and advertising plans;
6. A description of the applicant's plan for concessions, including whether the licensee will operate the concessions and, if not who will; and
7. A description of training of the applicant's personnel.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.12, eff. March 23, 1994.
11VAC10-40-230. Disclosure of affirmative action plan.
An applicant for a license shall develop and disclose a plan to be in compliance with all laws pertaining to discrimination, equal employment and affirmative action; policies regarding recruitment, use and advancement of minorities; policies with respect to minority contracting; and a copy of the Equal Employment Opportunity statement. Such disclosure shall include, but not be limited to, a general policy statement, goals, objectives and strategies for ensuring that the licensee is in compliance with all relevant laws.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.13, eff. March 23, 1994.
11VAC10-40-240. Disclosure of lease.
If the applicant leases the site of the satellite 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.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.14, eff. March 23, 1994.
11VAC10-40-250. Disclosure of safety and security plans.
An applicant for a license must disclose with regard to the development of the satellite facility the emergency services available; the fire, safety and security equipment and procedures; the security personnel to be employed; and a plan for uniform identification of employees, enabling customers to generally identify the function of each except undercover security personnel who shall carry a badge cleared with its local police jurisdiction. The disclosure shall include a description of the internal accounting controls to create cross checks and balances in order to safeguard assets and detect fraud and embezzlement.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.15, eff. March 23, 1994.
11VAC10-40-260. Disclosure of impact of the satellite facility.
An applicant for a license must disclose and document the projected impact of satellite facility, including:
1. Economic impact, giving:
a. Number of jobs created, permanent or temporary, type of work, compensation, employer, gender, and race;
b. Purchases of goods and services, types of purchases, and projected expenditures;
c. Public investment and private investment; and
d. State tax revenues generated and local tax revenues generated;
2. Environmental impact;
3. Impact on energy conservation and development of alternative energy sources; and
4. Social impact on the community in which the facility would be located.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.16, eff. March 23, 1994.
11VAC10-40-270. Disclosure of assistance in preparation of application.
An applicant must disclose the name, addresses and telephone numbers of individuals and businesses who assisted the applicant in the completion of its application and supply copies of all studies completed for the applicant.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.17, eff. March 23, 1994.
11VAC10-40-280. Personal information and authorization for release.
In an application for a license, the applicant shall include the following with respect to each individual identified as an applicant, partner, director, officer, other policymaker, or holder of a direct or indirect record or beneficial ownership interest or other voting interest or control of 5.0% or more in the applicant, any lease holder of a site of satellite facility, and each individual identified pursuant to subdivisions 2 and 3 of 11VAC10- 40-220.
1. Full name, business and residence addresses, and telephone numbers, residence addresses for the past five years, date of birth, place of birth, social security number if the individual is willing to provide it, and two references; and
2. An authorization for release of personal information, on a form prepared by the commission, signed by the individual providing that he:
a. Authorizes a review by, and full disclosure to the Federal Bureau of Investigation, 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 and the commission to determine the individual's qualifications for a license; and
c. Releases authorized providers and users of the information from any liability under state or federal data privacy statutes.
Statutory Authority
§ 59.1-369 of the Code of Virginia.
Historical Notes
Derived from VR662-02-05 § 2.18, eff. March 23, 1994.