SENATE CONCURRENT RESOLUTION NO. 62

(By Senators M. Hall, Snyder, Prezioso, D. Hall and Stollings)

Requesting the Joint Committee on Government and Finance establish a select committee consisting of ten members, five being from the House of Delegates and five being from the Senate, with no more than three members from each house from a single political party, to be responsible for a comprehensive study of West Virginia's racing and gaming industries as provided herein, including making recommendations and coordinating professional services procured in furtherance of the objectives herein described.

            Whereas, West Virginia's racing industry has a long and storied history, beginning in 1787 when George Washington's youngest brother Charles raced horses through the streets of what would become Charles Town, West Virginia; and

            Whereas, Formal horse racing tracks were established in West Virginia some years later, with the racetrack at Charles Town opening in 1933 and the precursor to Mountaineer Racetrack being founded in 1937. West Virginia greyhound racing followed with the opening of Wheeling Downs, a facility which found its racing origin in 1937 and in 1985, Tri-State Greyhound Park, now Mardi Gras Casino and Racetrack, opened; and

            Whereas, In an effort to protect and preserve West Virginia's celebrated racing industry, the West Virginia Legislature voted to allow slot-machine style video lottery in 1994 and casino-style table games in 2007 at our state's four racetracks, pending approval by the local electorate, in accord with the provisions of article twenty-two-c, chapter twenty-nine of the Code of West Virginia; and

            Whereas, Each of the four counties in West Virginia where a racetrack is located ultimately exercised their referendum rights under section seven, article twenty-two-c, chapter twenty-nine of the Code of West Virginia and voted to approve racetrack video lottery and table games at their respective racetrack facilities based on the promise that a portion of the revenues generated would be used to preserve and protect live racing, as well as promote the industry of breeding thoroughbred horses and greyhounds, while creating green space; and

            Whereas, Invariably, after five years, section seven, article twenty-two-c, chapter twenty-nine of the Code of West Virginia also provides for a subsequent local county referendum to revisit the decision by local voters to approve casino style gaming at racetrack venues; and

            Whereas, The "racinos" in West Virginia not only employ thousands of West Virginians and generate hundreds of millions of dollars of revenue for state government, the statutory structure by which they are licensed and operate has fostered the development of an industry of live racing and breeding of thoroughbreds and greyhounds, as provided for in the statute; and

             Whereas, Many individuals, companies, partnerships and entities have made and continue to make substantial investments in West Virginia, based on the statutory framework designed to preserve and protect live racing and promote the industry of breeding of thoroughbred horses and greyhound racing stock; and

            Whereas, In addition to supplementing racing and local governments, moneys generated by gaming at our state's racetracks have been used to bolster our state's general revenue fund as well as the state’s Development Office Promotion Fund, debt reduction funds, State Capitol improvements, the Division of Tourism, finance public school construction through the West Virginia School Building Authority, fund the Promise Scholarship Program, contribute to racetrack employee pensions and capital improvements for racetrack facilities; and

            Whereas, West Virginia's racino model proved most successful, becoming a reliable source of income for the state, but now the model is confronted with declining levels of performance for West Virginia; and

            Whereas, Until recent years, West Virginia's four racinos benefitted from modest market competition in neighboring states, thereby claiming a large portion of the gaming market east of the Mississippi River; and

            Whereas, Our surrounding states have learned from our successful gaming regulations and have implemented similar models, allowing for new casino properties to open near to West Virginia's borders in Ohio, Pennsylvania and Maryland; and

            Whereas, Though West Virginia’s four "racinos" once enjoyed little competition for regional gaming dollars, there are now approximately 20 new casinos in neighboring states with which West Virginia's"racinos" must compete for revenues and others under yet to become active which increases the competition for regional gaming dollars; and

            Whereas, Due to this competition, racing and gaming revenues upon which our state has become so dependent are decreasing at a rapid pace which creates a diminishing amount of money for all of the distributees of money generated by "racinos" and allocated in accordance with current law; and

            Whereas, In addition to the loss of revenues for the state, the jobs of thousands of West Virginia families who rely on the live racing and gaming industries for their livelihood are also at risk; and

            Whereas, The time has come to revisit our racing and gaming industry structure to determine a course of action that is in the best interest of West Virginia and its people, therefore, be it

            Resolved by the Legislature of West Virginia:

            That the Joint Committee on Government and Finance is hereby requested to establish a select committee consisting of ten members, five being from the House of Delegates and five being from the Senate, with no more than three members from each house from a single political party, to be responsible for a comprehensive study of West Virginia's racing and gaming industries as provided herein, including making recommendations and coordinating professional services procured in furtherance of the objectives herein described; and, be it

            Further Resolved, That the Select Committee to be established by the Joint Committee on Government and Finance is hereby requested to perform a comprehensive study of West Virginia's racing and gaming industries, which shall include, but not be limited to: (1) A review of all related laws, rules and regulations associated with all facets of live racing of greyhounds and thoroughbred horses, with recommendations for the modernization and streamlining of the same; (2) a review of all laws, rules and regulations associated with the business of both greyhound breeding and thoroughbred breeding, with recommendations for modernization and streamlining of the same; (3) a comprehensive review of the flow of revenues generated from racetrack video lottery, table games and any other sources contributing to money administered by the West Virginia Lottery in the form of excess lottery proceeds as a means of information for state policymakers; (4) a comprehensive investigation of appropriate governing structures for live racing and gaming activities from neighboring jurisdictions and beyond, with a recommendation of revisions and/or statutory overhaul of the governance of all forms of gaming in West Virginia, including general lottery, adult video lottery, racetrack video lottery and table games; (5) a comparative analysis of the job functions of the West Virginia Racing Commissions with comparable agencies in jurisdictions with a similar racing presence to determine the appropriateness of staff and funding levels with recommendations as to appropriate levels of each; (6) an analysis of the staff and funding levels associated with administration of all facets of the West Virginia Lottery, recognizing its unique configuration of administering conventional lottery operations, adult video lottery, racetrack video lottery and table games, and recommendations for economizing the operations of the West Virginia Lottery consistent with best industry practices; (7) an analysis of innovative and creative additions to West Virginia's gaming mix, including: innovative and creative ways to more efficiently and profitably administer West Virginia’s gaming activities, ways to provide for convenient consumer access to products offered within the array of gaming products offered by West Virginia, ways to provide policymakers with the status of internet gaming in West Virginia, and ways to identify any and all prospects which may enhance revenue generation by the entirety of West Virginia's gaming activities of all descriptions through new and additional games or manner of delivery of products to the lottery and gaming consuming public; and (8) the continuing legal effects, if any, of referendums on gaming heretofore undertaken to approve such in Jefferson, Hancock, Ohio and Kanawha counties, as well as the legal effects, if any, to reexercise those rights as provided by statute; and to provide any and all suggestions for the improvement, modernization, efficiency and economization of West Virginia's entire complement of gaming activities, including live racing; and, be it

            Further Resolved, That stakeholder representatives in all facets of West Virginia’s gaming industry of lottery, "racinos", live racing, greyhound breeding and thoroughbred breeding be actively engaged as part of any study process; and, be it

            Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2016, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

            Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.