2023 Session

Budget Amendments - HB1400 (Member Request)

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Chief Patron: Krizek
Regulation of Historical Horse Racing, Consultant

Item 111 #1h

Item 111 #1h

First Year - FY2023 Second Year - FY2024
Agriculture and Forestry
Virginia Racing Commission FY2023 $0 FY2024 $250,000 GF

Page 98, line 20, strike "$4,573,891" and insert "$4,823,891".

Page 99, after line 30, insert:

"H. Out of this appropriation, $250,000 the second year from the general fund is provided to engage an outside consultant with expertise in the regulating process of historical horse racing (HHR) to advise the Virginia Racing Commission (VRC) to ensure proper operations at HHR facilities and effectively minimize risks as per the recommendations of the JLARC study, "Oversight and Administration of Gaming in the Commonwealth." This consultation would include, inter alia, the establishment of internal control requirements for day-to-day operations of HHR facilities, requirements for the HHR operator to submit an annual independent financial audit, including the management letter, conducting regular, formal inspections of HHR facilities to identify and remedy any noncompliance, and creating mechanisms that can be used for enforcement. It would also include developing internal policies for ensuring the HHR operator's compliance with all applicable laws and regulations. At a minimum, the outside consultant should establish (i) procedures for inspecting HHR facilities, observing operations and wagering at the facilities, and documenting any noncompliance; (ii) the aspects of operations and facilities to be inspected and observed and what constitutes a satisfactory inspection, (iii) procedures for routine financial and operational audits, and (iv) the frequency with which compliance activities will be conducted. Finally, it would include the development of policies detailing how it will participate in statewide efforts to prevent and treat problem gambling."


(This amendment provides $250,000 from the general fund the second year for the Virginia Racing Commission to engage a consultant to provide recommendations to improve the Commission's oversight activities in relation to historical horse racing.)