Virginia Code 59.1-386: Acquisition of interest in licensee
A. The Commission shall require any person desiring to become a partner, member or principal stockholder of any licensee to apply to the Commission for approval thereof and may demand such information of the applicant as it finds necessary. The Commission shall consider such application forthwith and shall approve or deny the application within 60 days of receipt. The Commission shall approve an application that meets the criteria set forth in this chapter. The Commission shall deny an application if in its judgment the acquisition by the applicant would be detrimental to the public interest or to the honesty, integrity, and reputation of racing. The Commission shall approve an application to acquire actual control of a licensee only if it finds that the applicant meets the criteria set forth in subsection B.
Terms Used In Virginia Code 59.1-386
- Commission: means the Virginia Racing Commission. See Virginia Code 59.1-365
- Contract: A legal written agreement that becomes binding when signed.
- Licensee: includes any person holding an owner's or operator's license under Article 2 (§ 59. See Virginia Code 59.1-365
- Member: includes any person designated a member of a nonstock corporation, and any person who by means of a pecuniary or other interest in such corporation exercises the power of a member. See Virginia Code 59.1-365
- Person: means any individual, group of individuals, firm, company, corporation, partnership, business, trust, association, or other legal entity. See Virginia Code 59.1-365
- Principal stockholder: means any person who individually or in concert with his spouse and immediate family members, beneficially owns or controls, directly or indirectly, five percent or more of the stock of any person which is a licensee, or who in concert with his spouse and immediate family members, has the power to vote or cause the vote of five percent or more of any such stock. See Virginia Code 59.1-365
- Racetrack: means an outdoor course located in Virginia which is laid out for horse racing and is licensed by the Commission. See Virginia Code 59.1-365
- Satellite facility: means all areas of the property at which simulcast horse racing is received for the purposes of pari-mutuel wagering, and any additional areas designated by the Commission. See Virginia Code 59.1-365
B. If an applicant proposes to acquire actual control of a licensee, such person shall, pursuant to subsection A, submit to the Commission (i) its proposal for the future operation of any existing or planned racetrack, or satellite facility owned or operated by the licensee, (ii) such additional information as it desires, and (iii) such information as may be required by the Commission to assure the Commission that the licensee, under the actual control of such person, will have the experience, expertise, financial responsibility and commitment to comply with (a) the provisions of this chapter, (b) Commission regulations and orders, (c) the requirements for the continued operation of the licensee pursuant to the terms and conditions in effect on the date of the application of all licenses held by the licensee, (d) any existing contract with a recognized majority horseman’s group, and (e) any proposal submitted to the Commission by such person. The provisions of this subsection shall apply regardless of whether the control acquired is direct or indirect or whether its acquisition is accomplished individually or in concert with others.
C. Any such acquisition of control without prior approval of the Commission shall be voidable by the Commission and, in such instance, the Commission may revoke any license it has issued to such licensee, order compliance with this section, or take such other action as may be appropriate within the authority of the Commission.
1988, c. 855; 2003, c. 705.