Virginia 2025 Regular Session

Virginia House Bill HB2498 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	2025 SESSION
2		-
3		-	HOUSE SUBSTITUTE
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5		-	25105578D
	1	+	OFFERED FOR CONSIDERATION 1/27/2025
6	2
7	3		HOUSE BILL NO. 2498
8	4
9	5		AMENDMENT IN THE NATURE OF A SUBSTITUTE
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11	7		(Proposed by the House Committee on General Laws
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13	9		on ________________)
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15	11		(Patron Prior to SubstituteDelegate Krizek)
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17	13		A BILL to amend and reenact 2.2-203.3, 2.2-401.01, 2.2-3705.3, 2.2-3705.6, 2.2-3705.7, 2.2-3711, 2.2-3802, 2.2-4002, 2.2-4346, 3.2-102, 3.2-6201, 4.1-100, 4.1-206.3, as it is currently effective and as it shall become effective, 8.01-216.3, 8.01-534, 11-16.1, 11-16.2, 15.2-912.2, 15.2-2825, 18.2-325, 18.2-326, 18.2-334.2 through 18.2-334.5, 19.2-66, 19.2-215.1, 19.2-389, 19.2-390, 22.1-140.1, 37.2-314.2, 52-53, 52-54, 58.1-3, 58.1-439, 58.1-460, 58.1-3510, 58.1-3732.1, and 59.1-542.1 of the Code of Virginia; to amend the Code of Virginia by adding a title numbered 29.5, containing a subtitle numbered I, containing chapters numbered 1 through 6, consisting of sections numbered 29.5-100 through 29.5-648, and a subtitle numbered II, containing chapters numbered 7 and 8, consisting of sections numbered 29.5-700 through 29.5-814; and to repeal 2.2-2455 and 2.2-2456, Article 1.1:1 ( 18.2-340.15 through 18.2-340.37) of Chapter 8 of Title 18.2, Chapter 40 ( 58.1-4000 through 58.1-4048) of Title 58.1, Chapter 41 ( 58.1-4100 through 58.1-4141) of Title 58.1, Chapter 29 ( 59.1-364 through 59.1-405) of Title 59.1, and Chapter 51 ( 59.1-556 through 59.1-570) of Title 59.1 of the Code of Virginia, relating to Virginia Gaming Commission; established; penalties.
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21	17		Be it enacted by the General Assembly of Virginia:
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23	19		1. That 2.2-203.3, 2.2-401.01, 2.2-3705.3, 2.2-3705.6, 2.2-3705.7, 2.2-3711, 2.2-3802, 2.2-4002, 2.2-4346, 3.2-102, 3.2-6201, 4.1-100, 4.1-206.3, as it is currently effective and as it shall become effective, 8.01-216.3, 8.01-534, 11-16.1, 11-16.2, 15.2-912.2, 15.2-2825, 18.2-325, 18.2-326, 18.2-334.2 through 18.2-334.5, 19.2-66, 19.2-215.1, 19.2-389, 19.2-390, 22.1-140.1, 37.2-314.2, 52-53, 52-54, 58.1-3, 58.1-439, 58.1-460, 58.1-3510, 58.1-3732.1, and 59.1-542.1 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding a title numbered 29.5, containing a subtitle numbered I, containing chapters numbered 1 through 6, consisting of sections numbered 29.5-100 through 29.5-648, and a subtitle numbered II, containing chapters numbered 7 and 8, consisting of sections numbered 29.5-700 through 29.5-814, as follows:
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25	21		2.2-203.3. Position established; agencies for which responsible; additional duties.
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27	23		The position of Secretary of Agriculture and Forestry (the Secretary) is created. The Secretary shall be responsible to the Governor for the following agencies: Department of Forestry, Department of Agriculture and Consumer Services, and Virginia Agricultural Council, and Virginia Racing Commission. The Governor, by executive order, may assign any state executive agency to the Secretary, or reassign any agency listed in this section to another Secretary.
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29	25		2.2-401.01. Liaison to Virginia Indian tribes; Ombudsman for Tribal Consultation; Virginia Indigenous People's Trust Fund.
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31	27		A. The Secretary of the Commonwealth shall:
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33	29		1. Serve as the Governor's liaison to the Virginia Indian tribes;
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35	31		2. Designate an Ombudsman for Tribal Consultation pursuant to subsection B; and
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37	33		3. Report annually on the status of Indian tribes in Virginia.
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39	35		B. The Secretary of the Commonwealth shall designate, in consultation with and upon the advice of federally recognized Tribal Nations in the Commonwealth, an Ombudsman for Tribal Consultation (the Ombudsman). The Ombudsman shall:
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41	37		1. Facilitate communication between federally recognized Tribal Nations in the Commonwealth and relevant state agencies and local governments for consultation on environmental, cultural, and historical permits and reviews;
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43	39		2. Develop a list of localities in ongoing consultation with the federally recognized Tribal Nations in which federally recognized Tribal Nations in the Commonwealth shall be consulted regarding actions and projects pursuant to 10.1-104.02, 10.1-1186.3:1, 10.1-2205.1, and 28.2-104.01;
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45	41		3. Assist the Department of Environmental Quality, the Department of Conservation and Recreation, the Department of Historic Resources, and the Virginia Marine Resources Commission in developing policies and procedures to ensure meaningful and appropriate consultation with federally recognized Tribal Nations in the Commonwealth regarding permits and reviews; and
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47	43		4. Make recommendations to the Governor about additional permits and reviews that, in the opinion of the Ombudsman, should require consultation with federally recognized Tribal Nations in the Commonwealth.
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49	45		C. The Secretary of the Commonwealth may establish a Virginia Indian advisory board to assist the Secretary in reviewing applications seeking recognition as a Virginia Indian tribe and to make recommendations to the Secretary, the Governor, and the General Assembly on such applications and other matters relating to recognition as follows:
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51	47		1. The members of any such board shall be composed of no more than seven members to be appointed by the Secretary as follows: at least three of the members shall be members of Virginia recognized tribes to represent the Virginia Indian community, and one nonlegislative citizen member shall represent the Commonwealth's scholarly community. The Librarian of Virginia, the Director of the Department of Historic Resources, and the Superintendent of Public Instruction, or their designees, shall serve ex officio with voting privileges. Nonlegislative citizen members of any such board shall be citizens of the Commonwealth. Ex officio members shall serve terms coincident with their terms of office. Nonlegislative citizen members shall be appointed for a term of two years. Appointments to fill vacancies, other than by expiration of a term, shall be for the unexpired terms. All members may be reappointed. The Secretary of the Commonwealth shall appoint a chairperson from among the members for a two-year term. Members shall be reimbursed for reasonable and necessary expenses incurred in the performance of their duties as provided in 2.2-2813 and 2.2-2825.
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53	49		2. Any such board shall have the following powers and duties:
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55	51		a. Establish guidance for documentation required to meet the criteria for full recognition of the Virginia Indian tribes that is consistent with the principles and requirements of federal tribal recognition;
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57	53		b. Establish a process for accepting and reviewing all applications for full tribal recognition;
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59	55		c. Appoint and establish a workgroup on tribal recognition composed of nonlegislative citizens at large who have knowledge of Virginia Indian history and current status. Such workgroup (i) may be activated in any year in which an application for full tribal recognition has been submitted and in other years as deemed appropriate by any such board and (ii) shall include at a minimum a genealogist and at least two scholars with recognized familiarity with Virginia Indian tribes. No member of the workgroup shall be associated in any way with the applicant. Members of the workgroup shall be reimbursed for reasonable and necessary expenses incurred in the performance of their duties as provided in 2.2-2813 and 2.2-2825;
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61	57		d. Solicit, accept, use, and dispose of gifts, grants, donations, bequests, or other funds or real or personal property for the purpose of aiding or facilitating the work of the board;
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63	59		e. Make recommendations to the Secretary for full tribal recognition based on the findings of the workgroup and the board; and
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65	61		f. Perform such other duties, functions, and activities as may be necessary to facilitate and implement the objectives of this subsection.
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67	63		D. There is hereby created in the state treasury a special nonreverting fund to be known as the Virginia Indigenous People's Trust Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All funds appropriated for such purpose, any tax revenue accruing to the Fund pursuant to 58.1-4125 29.5-327, and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. After payment of the costs of administration of the Fund, moneys in the Fund shall be used to make disbursements on a quarterly basis in equal amounts to each of the six Virginia Indian tribes federally recognized under P.L. 115-121 of 2018. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Secretary of the Commonwealth.
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69	65		2.2-3705.3. Exclusions to application of chapter; records relating to administrative investigations.
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71	67		The following information contained in a public record is excluded from the mandatory disclosure provisions of this chapter but may be disclosed by the custodian in his discretion, except where such disclosure is prohibited by law. Redaction of information excluded under this section from a public record shall be conducted in accordance with 2.2-3704.01.
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73	69		1. Information relating to investigations of applicants for licenses and permits, and of all licensees and permittees, made by or submitted to the Virginia Alcoholic Beverage Control Authority, the Virginia Cannabis Control Authority, the Virginia Gaming Commission, the Virginia Lottery pursuant to Chapter 40 ( 58.1-4000 et seq.) and Chapter 41 ( 58.1-4100 et seq.) of Title 58.1, the Virginia Racing Commission, the Department of Agriculture and Consumer Services relating to investigations and applications pursuant to Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 of Title 18.2, or the Private Security Services Unit of the Department of Criminal Justice Services.
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75	71		2. Records of active investigations being conducted by the Virginia Cannabis Control Authority or by the Department of Health Professions or any health regulatory board in the Commonwealth pursuant to 54.1-108.
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77	73		3. Investigator notes, and other correspondence and information, furnished in confidence with respect to an active investigation of individual employment discrimination complaints made to the Department of Human Resource Management, to such personnel of any local public body, including local school boards, as are responsible for conducting such investigations in confidence, or to any public institution of higher education. However, nothing in this subdivision shall prevent the disclosure of information taken from inactive reports in a form that does not reveal the identity of charging parties, persons supplying the information, or other individuals involved in the investigation.
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79	75		4. Records of active investigations being conducted by the Department of Medical Assistance Services pursuant to Chapter 10 ( 32.1-323 et seq.) of Title 32.1.
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81	77		5. Investigative notes and other correspondence and information furnished in confidence with respect to an investigation or conciliation process involving an alleged unlawful discriminatory practice under the Virginia Human Rights Act ( 2.2-3900 et seq.) or under any local ordinance adopted in accordance with the authority specified in 2.2-524, or adopted pursuant to 15.2-965, or adopted prior to July 1, 1987, in accordance with applicable law, relating to local human rights or human relations commissions. However, nothing in this subdivision shall prevent the distribution of information taken from inactive reports in a form that does not reveal the identity of the parties involved or other persons supplying information.
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83	79		6. Information relating to studies and investigations by the Virginia Lottery of (i) lottery agents, (ii) lottery vendors, (iii) lottery crimes under 58.1-4014 through 58.1-4018 29.5-713 and 29.5-803 through 29.5-807, (iv) defects in the law or regulations that cause abuses in the administration and operation of the lottery and any evasions of such provisions, or (v) the use of the lottery as a subterfuge for organized crime and illegal gambling where such information has not been publicly released, published, or copyrighted. All studies and investigations referred to under clauses (iii), (iv), and (v) shall be open to inspection and copying upon completion of the study or investigation.
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85	81		7. Investigative notes, correspondence and information furnished in confidence, and records otherwise exempted by this chapter or any Virginia statute, provided to or produced by or for (i) the Auditor of Public Accounts; (ii) the Joint Legislative Audit and Review Commission; (iii) an appropriate authority as defined in 2.2-3010 with respect to an allegation of wrongdoing or abuse under the Fraud and Abuse Whistle Blower Protection Act ( 2.2-3009 et seq.); (iv) the Office of the State Inspector General with respect to an investigation initiated through the Fraud, Waste and Abuse Hotline or an investigation initiated pursuant to Chapter 3.2 ( 2.2-307 et seq.); (v) internal auditors appointed by the head of a state agency or by any public institution of higher education; (vi) the committee or the auditor with respect to an investigation or audit conducted pursuant to 15.2-825; (vii) the auditors, appointed by the local governing body of any county, city, or town or a school board, who by charter, ordinance, or statute have responsibility for conducting an investigation of any officer, department, or program of such body; or (viii) the Behavioral Health Commission. Information contained in completed investigations shall be disclosed in a form that does not reveal the identity of the complainants or persons supplying information to investigators. Unless disclosure is excluded by this subdivision, the information disclosed shall include the agency involved, the identity of the person who is the subject of the complaint, the nature of the complaint, and the actions taken to resolve the complaint. If an investigation does not lead to corrective action, the identity of the person who is the subject of the complaint may be released only with the consent of the subject person. Local governing bodies shall adopt guidelines to govern the disclosure required by this subdivision.
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87	83		8. The names and personal contact information of complainants furnished in confidence with respect to an investigation of individual zoning enforcement complaints or complaints relating to the Uniform Statewide Building Code ( 36-97 et seq.) or the Statewide Fire Prevention Code ( 27-94 et seq.) made to a local governing body. As used in this subdivision, "personal contact information" includes the complainant's home or business (i) address, (ii) email address, or (iii) telephone number or comparable number assigned to any other electronic communication device.
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89	85		9. Records of active investigations being conducted by the Department of Criminal Justice Services pursuant to Article 4 ( 9.1-138 et seq.), Article 4.1 ( 9.1-150.1 et seq.), Article 11 ( 9.1-185 et seq.), and Article 12 ( 9.1-186 et seq.) of Chapter 1 of Title 9.1.
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91	87		10. Information furnished to or prepared by the Board of Education pursuant to subsection D of 22.1-253.13:3 in connection with the review or investigation of any alleged breach in security, unauthorized alteration, or improper administration of tests by local school board employees responsible for the distribution or administration of the tests. However, this section shall not prohibit the disclosure of such information to (i) a local school board or division superintendent for the purpose of permitting such board or superintendent to consider or to take personnel action with regard to an employee or (ii) any requester, after the conclusion of a review or investigation, in a form that (a) does not reveal the identity of any person making a complaint or supplying information to the Board on a confidential basis and (b) does not compromise the security of any test mandated by the Board.
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93	89		11. Information contained in (i) an application for licensure or renewal of a license for teachers and other school personnel, including transcripts or other documents submitted in support of an application, and (ii) an active investigation conducted by or for the Board of Education related to the denial, suspension, cancellation, revocation, or reinstatement of teacher and other school personnel licenses including investigator notes and other correspondence and information, furnished in confidence with respect to such investigation. However, this subdivision shall not prohibit the disclosure of such (a) application information to the applicant at his own expense or (b) investigation information to a local school board or division superintendent for the purpose of permitting such board or superintendent to consider or to take personnel action with regard to an employee. Information contained in completed investigations shall be disclosed in a form that does not reveal the identity of any complainant or person supplying information to investigators. The completed investigation information disclosed shall include information regarding the school or facility involved, the identity of the person who was the subject of the complaint, the nature of the complaint, and the actions taken to resolve the complaint. If an investigation fails to support a complaint or does not lead to corrective action, the identity of the person who was the subject of the complaint may be released only with the consent of the subject person. No personally identifiable information regarding a current or former student shall be released except as permitted by state or federal law.
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95	91		12. Information provided in confidence and related to an investigation by the Attorney General under Article 1 ( 3.2-4200 et seq.) or Article 3 ( 3.2-4204 et seq.) of Chapter 42 of Title 3.2, Article 10 ( 18.2-246.6 et seq.) of Chapter 6 or Chapter 13 ( 18.2-512 et seq.) of Title 18.2, or Article 1 ( 58.1-1000) of Chapter 10 of Title 58.1. However, information related to an investigation that has been inactive for more than six months shall, upon request, be disclosed provided such disclosure is not otherwise prohibited by law and does not reveal the identity of charging parties, complainants, persons supplying information, witnesses, or other individuals involved in the investigation.
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97	93		13. Records of active investigations being conducted by the Department of Behavioral Health and Developmental Services pursuant to Chapter 4 ( 37.2-400 et seq.) of Title 37.2.
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99	95		2.2-3705.6. Exclusions to application of chapter; proprietary records and trade secrets.
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101	97		The following information contained in a public record is excluded from the mandatory disclosure provisions of this chapter but may be disclosed by the custodian in his discretion, except where such disclosure is prohibited by law. Redaction of information excluded under this section from a public record shall be conducted in accordance with 2.2-3704.01.
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103	99		1. Proprietary information gathered by or for the Virginia Port Authority as provided in 62.1-132.4 or 62.1-134.1.
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105	101		2. Financial statements not publicly available filed with applications for industrial development financings in accordance with Chapter 49 ( 15.2-4900 et seq.) of Title 15.2.
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107	103		3. Proprietary information, voluntarily provided by private business pursuant to a promise of confidentiality from a public body, used by the public body for business, trade, and tourism development or retention; and memoranda, working papers, or other information related to businesses that are considering locating or expanding in Virginia, prepared by a public body, where competition or bargaining is involved and where disclosure of such information would adversely affect the financial interest of the public body.
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109	105		4. Information that was filed as confidential under the Toxic Substances Information Act ( 32.1-239 et seq.), as such Act existed prior to July 1, 1992.
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111	107		5. Fisheries data that would permit identification of any person or vessel, except when required by court order as specified in 28.2-204.
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113	109		6. Confidential financial statements, balance sheets, trade secrets, and revenue and cost projections provided to the Department of Rail and Public Transportation, provided such information is exempt under the federal Freedom of Information Act or the federal Interstate Commerce Act or other laws administered by the Surface Transportation Board or the Federal Railroad Administration with respect to data provided in confidence to the Surface Transportation Board and the Federal Railroad Administration.
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115	111		7. Proprietary information related to inventory and sales, voluntarily provided by private energy suppliers to the Department of Energy, used by that Department for energy contingency planning purposes or for developing consolidated statistical information on energy supplies.
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117	113		8. Confidential proprietary information furnished to the Board of Medical Assistance Services or the Medicaid Prior Authorization Advisory Committee pursuant to Article 4 ( 32.1-331.12 et seq.) of Chapter 10 of Title 32.1.
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119	115		9. Proprietary, commercial, or financial information, balance sheets, trade secrets, and revenue and cost projections provided by a private transportation business to the Virginia Department of Transportation and the Department of Rail and Public Transportation for the purpose of conducting transportation studies needed to obtain grants or other financial assistance under the Transportation Equity Act for the 21st Century (P.L. 105-178) for transportation projects if disclosure of such information is exempt under the federal Freedom of Information Act or the federal Interstate Commerce Act or other laws administered by the Surface Transportation Board or the Federal Railroad Administration with respect to data provided in confidence to the Surface Transportation Board and the Federal Railroad Administration. However, the exclusion provided by this subdivision shall not apply to any wholly owned subsidiary of a public body.
120	116
121	117		10. Confidential information designated as provided in subsection F of 2.2-4342 as trade secrets or proprietary information by any person in connection with a procurement transaction or by any person who has submitted to a public body an application for prequalification to bid on public construction projects in accordance with subsection B of 2.2-4317.
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123	119		11. a. Memoranda, staff evaluations, or other information prepared by the responsible public entity, its staff, outside advisors, or consultants exclusively for the evaluation and negotiation of proposals filed under the Public-Private Transportation Act of 1995 ( 33.2-1800 et seq.) or the Public-Private Education Facilities and Infrastructure Act of 2002 ( 56-575.1 et seq.) where (i) if such information was made public prior to or after the execution of an interim or a comprehensive agreement, 33.2-1820 or 56-575.17 notwithstanding, the financial interest or bargaining position of the public entity would be adversely affected and (ii) the basis for the determination required in clause (i) is documented in writing by the responsible public entity; and
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125	121		b. Information provided by a private entity to a responsible public entity, affected jurisdiction, or affected local jurisdiction pursuant to the provisions of the Public-Private Transportation Act of 1995 ( 33.2-1800 et seq.) or the Public-Private Education Facilities and Infrastructure Act of 2002 ( 56-575.1 et seq.) if disclosure of such information would reveal (i) trade secrets of the private entity; (ii) financial information of the private entity, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise; or (iii) other information submitted by the private entity where if such information was made public prior to the execution of an interim agreement or a comprehensive agreement, the financial interest or bargaining position of the public or private entity would be adversely affected. In order for the information specified in clauses (i), (ii), and (iii) to be excluded from the provisions of this chapter, the private entity shall make a written request to the responsible public entity:
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127	123		(1) Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
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129	125		(2) Identifying with specificity the data or other materials for which protection is sought; and
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131	127		(3) Stating the reasons why protection is necessary.
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133	129		The responsible public entity shall determine whether the requested exclusion from disclosure is necessary to protect the trade secrets or financial information of the private entity. To protect other information submitted by the private entity from disclosure, the responsible public entity shall determine whether public disclosure prior to the execution of an interim agreement or a comprehensive agreement would adversely affect the financial interest or bargaining position of the public or private entity. The responsible public entity shall make a written determination of the nature and scope of the protection to be afforded by the responsible public entity under this subdivision. Once a written determination is made by the responsible public entity, the information afforded protection under this subdivision shall continue to be protected from disclosure when in the possession of any affected jurisdiction or affected local jurisdiction.
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135	131		Except as specifically provided in subdivision 11 a, nothing in this subdivision shall be construed to authorize the withholding of (a) procurement records as required by 33.2-1820 or 56-575.17; (b) information concerning the terms and conditions of any interim or comprehensive agreement, service contract, lease, partnership, or any agreement of any kind entered into by the responsible public entity and the private entity; (c) information concerning the terms and conditions of any financing arrangement that involves the use of any public funds; or (d) information concerning the performance of any private entity developing or operating a qualifying transportation facility or a qualifying project.
136	132
137	133		For the purposes of this subdivision, the terms "affected jurisdiction," "affected local jurisdiction," "comprehensive agreement," "interim agreement," "qualifying project," "qualifying transportation facility," "responsible public entity," and "private entity" shall mean the same as those terms are defined in the Public-Private Transportation Act of 1995 ( 33.2-1800 et seq.) or in the Public-Private Education Facilities and Infrastructure Act of 2002 ( 56-575.1 et seq.).
138	134
139	135		12. Confidential proprietary information or trade secrets, not publicly available, provided by a private person or entity pursuant to a promise of confidentiality to the Virginia Resources Authority or to a fund administered in connection with financial assistance rendered or to be rendered by the Virginia Resources Authority where, if such information were made public, the financial interest of the private person or entity would be adversely affected.
140	136
141	137		13. Trade secrets or confidential proprietary information that is not generally available to the public through regulatory disclosure or otherwise, provided by a (i) bidder or applicant for a franchise or (ii) franchisee under Chapter 21 ( 15.2-2100 et seq.) of Title 15.2 to the applicable franchising authority pursuant to a promise of confidentiality from the franchising authority, to the extent the information relates to the bidder's, applicant's, or franchisee's financial capacity or provision of new services, adoption of new technologies or implementation of improvements, where such new services, technologies, or improvements have not been implemented by the franchisee on a nonexperimental scale in the franchise area, and where, if such information were made public, the competitive advantage or financial interests of the franchisee would be adversely affected.
142	138
143	139		In order for trade secrets or confidential proprietary information to be excluded from the provisions of this chapter, the bidder, applicant, or franchisee shall (a) invoke such exclusion upon submission of the data or other materials for which protection from disclosure is sought, (b) identify the data or other materials for which protection is sought, and (c) state the reason why protection is necessary.
144	140
145	141		No bidder, applicant, or franchisee may invoke the exclusion provided by this subdivision if the bidder, applicant, or franchisee is owned or controlled by a public body or if any representative of the applicable franchising authority serves on the management board or as an officer of the bidder, applicant, or franchisee.
146	142
147	143		14. Information of a proprietary or confidential nature furnished by a supplier or manufacturer of charitable gaming supplies to the Department of Agriculture and Consumer Services Virginia Gaming Commission (i) pursuant to subsection E of 18.2-340.34 29.5-225 and (ii) pursuant to regulations promulgated by the Commissioner of Agriculture and Consumer Services Virginia Gaming Commission Board related to approval of electronic and mechanical equipment.
148	144
149	145		15. Information related to Virginia apple producer sales provided to the Virginia State Apple Board pursuant to 3.2-1215.
150	146
151	147		16. Trade secrets submitted by CMRS providers as defined in 56-484.12 to the former Wireless Carrier E-911 Cost Recovery Subcommittee created pursuant to former 56-484.15, relating to the provision of wireless E-911 service.
152	148
153	149		17. Information relating to a grant or loan application, or accompanying a grant or loan application, to the Commonwealth Health Research Board pursuant to Chapter 5.3 ( 32.1-162.23 et seq.) of Title 32.1 if disclosure of such information would (i) reveal proprietary business or research-related information produced or collected by the applicant in the conduct of or as a result of study or research on medical, rehabilitative, scientific, technical, technological, or scholarly issues, when such information has not been publicly released, published, copyrighted, or patented, and (ii) be harmful to the competitive position of the applicant.
154	150
155	151		18. Confidential proprietary information and trade secrets developed and held by a local public body (i) providing telecommunication services pursuant to 56-265.4:4 and (ii) providing cable television services pursuant to Article 1.1 ( 15.2-2108.2 et seq.) of Chapter 21 of Title 15.2 if disclosure of such information would be harmful to the competitive position of the locality.
156	152
157	153		In order for confidential proprietary information or trade secrets to be excluded from the provisions of this chapter, the locality in writing shall (a) invoke the protections of this subdivision, (b) identify with specificity the information for which protection is sought, and (c) state the reasons why protection is necessary. However, the exemption provided by this subdivision shall not apply to any authority created pursuant to the BVU Authority Act ( 15.2-7200 et seq.).
158	154
159	155		19. Confidential proprietary information and trade secrets developed by or for a local authority created in accordance with the Virginia Wireless Service Authorities Act ( 15.2-5431.1 et seq.) to provide qualifying communications services as authorized by Article 5.1 ( 56-484.7:1 et seq.) of Chapter 15 of Title 56, where disclosure of such information would be harmful to the competitive position of the authority, except that information required to be maintained in accordance with 15.2-2160 shall be released.
160	156
161	157		20. Trade secrets or financial information of a business, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise, provided to the Department of Small Business and Supplier Diversity as part of an application for certification as a small, women-owned, or minority-owned business in accordance with Chapter 16.1 ( 2.2-1603 et seq.). In order for such trade secrets or financial information to be excluded from the provisions of this chapter, the business shall (i) invoke such exclusion upon submission of the data or other materials for which protection from disclosure is sought, (ii) identify the data or other materials for which protection is sought, and (iii) state the reasons why protection is necessary.
162	158
163	159		21. Information of a proprietary or confidential nature disclosed by a carrier to the State Health Commissioner pursuant to 32.1-276.5:1 and 32.1-276.7:1.
164	160
165	161		22. Trade secrets, including, but not limited to, financial information, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise, and revenue and cost projections supplied by a private or nongovernmental entity to the State Inspector General for the purpose of an audit, special investigation, or any study requested by the Office of the State Inspector General in accordance with law.
166	162
167	163		In order for the information specified in this subdivision to be excluded from the provisions of this chapter, the private or nongovernmental entity shall make a written request to the State Inspector General:
168	164
169	165		a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
170	166
171	167		b. Identifying with specificity the data or other materials for which protection is sought; and
172	168
173	169		c. Stating the reasons why protection is necessary.
174	170
175	171		The State Inspector General shall determine whether the requested exclusion from disclosure is necessary to protect the trade secrets or financial information of the private entity. The State Inspector General shall make a written determination of the nature and scope of the protection to be afforded by it under this subdivision.
176	172
177	173		23. Information relating to a grant application, or accompanying a grant application, submitted to the Tobacco Region Revitalization Commission that would (i) reveal (a) trade secrets, (b) financial information of a grant applicant that is not a public body, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise, or (c) research-related information produced or collected by the applicant in the conduct of or as a result of study or research on medical, rehabilitative, scientific, technical, technological, or scholarly issues, when such information has not been publicly released, published, copyrighted, or patented, and (ii) be harmful to the competitive position of the applicant; and memoranda, staff evaluations, or other information prepared by the Commission or its staff exclusively for the evaluation of grant applications. The exclusion provided by this subdivision shall apply to grants that are consistent with the powers of and in furtherance of the performance of the duties of the Commission pursuant to 3.2-3103.
178	174
179	175		In order for the information specified in this subdivision to be excluded from the provisions of this chapter, the applicant shall make a written request to the Commission:
180	176
181	177		a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
182	178
183	179		b. Identifying with specificity the data, information or other materials for which protection is sought; and
184	180
185	181		c. Stating the reasons why protection is necessary.
186	182
187	183		The Commission shall determine whether the requested exclusion from disclosure is necessary to protect the trade secrets, financial information, or research-related information of the applicant. The Commission shall make a written determination of the nature and scope of the protection to be afforded by it under this subdivision.
188	184
189	185		24. a. Information held by the Commercial Space Flight Authority relating to rate structures or charges for the use of projects of, the sale of products of, or services rendered by the Authority if disclosure of such information would adversely affect the financial interest or bargaining position of the Authority or a private entity providing the information to the Authority; or
190	186
191	187		b. Information provided by a private entity to the Commercial Space Flight Authority if disclosure of such information would (i) reveal (a) trade secrets of the private entity; (b) financial information of the private entity, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise; or (c) other information submitted by the private entity and (ii) adversely affect the financial interest or bargaining position of the Authority or private entity.
192	188
193	189		In order for the information specified in clauses (a), (b), and (c) of subdivision 24 b to be excluded from the provisions of this chapter, the private entity shall make a written request to the Authority:
194	190
195	191		(1) Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
196	192
197	193		(2) Identifying with specificity the data or other materials for which protection is sought; and
198	194
199	195		(3) Stating the reasons why protection is necessary.
200	196
201	197		The Authority shall determine whether the requested exclusion from disclosure is necessary to protect the trade secrets or financial information of the private entity. To protect other information submitted by the private entity from disclosure, the Authority shall determine whether public disclosure would adversely affect the financial interest or bargaining position of the Authority or private entity. The Authority shall make a written determination of the nature and scope of the protection to be afforded by it under this subdivision.
202	198
203	199		25. Information of a proprietary nature furnished by an agricultural landowner or operator to the Department of Conservation and Recreation, the Department of Environmental Quality, the Department of Agriculture and Consumer Services, or any political subdivision, agency, or board of the Commonwealth pursuant to 10.1-104.7, 10.1-104.8, and 10.1-104.9, other than when required as part of a state or federal regulatory enforcement action.
204	200
205	201		26. Trade secrets provided to the Department of Environmental Quality pursuant to the provisions of 10.1-1458. In order for such trade secrets to be excluded from the provisions of this chapter, the submitting party shall (i) invoke this exclusion upon submission of the data or materials for which protection from disclosure is sought, (ii) identify the data or materials for which protection is sought, and (iii) state the reasons why protection is necessary.
206	202
207	203		27. Information of a proprietary nature furnished by a licensed public-use airport to the Department of Aviation for funding from programs administered by the Department of Aviation or the Virginia Aviation Board, where if such information was made public, the financial interest of the public-use airport would be adversely affected.
208	204
209	205		In order for the information specified in this subdivision to be excluded from the provisions of this chapter, the public-use airport shall make a written request to the Department of Aviation:
210	206
211	207		a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
212	208
213	209		b. Identifying with specificity the data or other materials for which protection is sought; and
214	210
215	211		c. Stating the reasons why protection is necessary.
216	212
217	213		28. Information relating to a grant, loan, or investment application, or accompanying a grant, loan, or investment application, submitted to the Commonwealth of Virginia Innovation Partnership Authority (the Authority) established pursuant to Article 11 ( 2.2-2351 et seq.) of Chapter 22, an advisory committee of the Authority, or any other entity designated by the Authority to review such applications, to the extent that such records would (i) reveal (a) trade secrets; (b) financial information of a party to a grant, loan, or investment application that is not a public body, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise; or (c) research-related information produced or collected by a party to the application in the conduct of or as a result of study or research on medical, rehabilitative, scientific, technical, technological, or scholarly issues, when such information has not been publicly released, published, copyrighted, or patented, and (ii) be harmful to the competitive position of a party to a grant, loan, or investment application; and memoranda, staff evaluations, or other information prepared by the Authority or its staff, or a reviewing entity designated by the Authority, exclusively for the evaluation of grant, loan, or investment applications, including any scoring or prioritization documents prepared for and forwarded to the Authority.
218	214
219	215		29. Proprietary information, voluntarily provided by a private business pursuant to a promise of confidentiality from a public body, used by the public body for a solar services or carbon sequestration agreement, where disclosure of such information would (i) reveal (a) trade secrets of the private business; (b) financial information of the private business, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise; or (c) other information submitted by the private business and (ii) adversely affect the financial interest or bargaining position of the public body or private business.
220	216
221	217		In order for the information specified in clauses (i)(a), (b), and (c) to be excluded from the provisions of this chapter, the private business shall make a written request to the public body:
222	218
223	219		a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
224	220
225	221		b. Identifying with specificity the data or other materials for which protection is sought; and
226	222
227	223		c. Stating the reasons why protection is necessary.
228	224
229	225		30. Information contained in engineering and construction drawings and plans submitted for the sole purpose of complying with the Building Code in obtaining a building permit if disclosure of such information would identify specific trade secrets or other information that would be harmful to the competitive position of the owner or lessee. However, such information shall be exempt only until the building is completed. Information relating to the safety or environmental soundness of any building shall not be exempt from disclosure.
230	226
231	227		31. Trade secrets, including, but not limited to, financial information, including balance sheets and financial statements that are not generally available to the public through regulatory disclosure or otherwise, and revenue and cost projections supplied by a private or nongovernmental entity to the Virginia Department of Transportation for the purpose of an audit, special investigation, or any study requested by the Virginia Department of Transportation in accordance with law.
232	228
233	229		In order for the records specified in this subdivision to be excluded from the provisions of this chapter, the private or nongovernmental entity shall make a written request to the Department:
234	230
235	231		a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
236	232
237	233		b. Identifying with specificity the data or other materials for which protection is sought; and
238	234
239	235		c. Stating the reasons why protection is necessary.
240	236
241	237		The Virginia Department of Transportation shall determine whether the requested exclusion from disclosure is necessary to protect trade secrets or financial records of the private entity. The Virginia Department of Transportation shall make a written determination of the nature and scope of the protection to be afforded by it under this subdivision.
242	238
243	239		32. Information related to a grant application, or accompanying a grant application, submitted to the Department of Housing and Community Development that would (i) reveal (a) trade secrets, (b) financial information of a grant applicant that is not a public body, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise, or (c) research-related information produced or collected by the applicant in the conduct of or as a result of study or research on medical, rehabilitative, scientific, technical, technological, or scholarly issues, when such information has not been publicly released, published, copyrighted, or patented, and (ii) be harmful to the competitive position of the applicant. The exclusion provided by this subdivision shall only apply to grants administered by the Department, the Director of the Department, or pursuant to 36-139, Article 26 ( 2.2-2484 et seq.) of Chapter 24, or the Virginia Telecommunication Initiative as authorized by the appropriations act.
244	240
245	241		In order for the information submitted by the applicant and specified in this subdivision to be excluded from the provisions of this chapter, the applicant shall make a written request to the Department:
246	242
247	243		a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
248	244
249	245		b. Identifying with specificity the data, information, or other materials for which protection is sought; and
250	246
251	247		c. Stating the reasons why protection is necessary.
252	248
253	249		The Department shall determine whether the requested exclusion from disclosure is necessary to protect the trade secrets or confidential proprietary information of the applicant. The Department shall make a written determination of the nature and scope of the protection to be afforded by it under this subdivision.
254	250
255	251		33. Financial and proprietary records submitted with a loan application to a locality for the preservation or construction of affordable housing that is related to a competitive application to be submitted to either the U.S. Department of Housing and Urban Development (HUD) or the Virginia Housing Development Authority (VHDA), when the release of such records would adversely affect the bargaining or competitive position of the applicant. Such records shall not be withheld after they have been made public by HUD or VHDA.
256	252
257	253		34. Information of a proprietary or confidential nature disclosed by a health carrier or pharmacy benefits manager pursuant to 38.2-3407.15:6, a wholesale distributor pursuant to 54.1-3436.1, or a manufacturer pursuant to 54.1-3442.02.
258	254
259	255		35. Trade secrets, proprietary information, or financial information, including balance sheets and financial statements, that are not generally available to the public through regulatory disclosure or otherwise, supplied by an individual or a private or nongovernmental entity to the Fort Monroe Authority for the purpose of complying with the obligations of any lease, easement, license, permit, or other agreement, whether of a commercial or residential real estate nature, pertaining to the use or occupancy of any portion of Fort Monroe.
260	256
261	257		In order for the records specified in this subdivision to be excluded from the provisions of this chapter, the individual or private or nongovernmental entity shall make a written request to the Fort Monroe Authority:
262	258
263	259		a. Invoking such exclusion upon submission of the data or other materials for which protection from disclosure is sought;
264	260
265	261		b. Identifying with specificity the data, information, or other materials for which protection is sought; and
266	262
267	263		c. Stating the reasons why protection is necessary.
268	264
269	265		2.2-3705.7. Exclusions to application of chapter; records of specific public bodies and certain other limited exclusions.
270	266
271	267		The following information contained in a public record is excluded from the mandatory disclosure provisions of this chapter but may be disclosed by the custodian in his discretion, except where such disclosure is prohibited by law. Redaction of information excluded under this section from a public record shall be conducted in accordance with 2.2-3704.01.
272	268
273	269		1. State income, business, and estate tax returns, personal property tax returns, and confidential records held pursuant to 58.1-3.
274	270
275	271		2. Working papers and correspondence of the Office of the Governor, the Lieutenant Governor, or the Attorney General; the members of the General Assembly, the Division of Legislative Services, or the Clerks of the House of Delegates or the Senate of Virginia; the mayor or chief executive officer of any political subdivision of the Commonwealth; or the president or other chief executive officer of any public institution of higher education in the Commonwealth. However, no information that is otherwise open to inspection under this chapter shall be deemed excluded by virtue of the fact that it has been attached to or incorporated within any working paper or correspondence. Further, information publicly available or not otherwise subject to an exclusion under this chapter or other provision of law that has been aggregated, combined, or changed in format without substantive analysis or revision shall not be deemed working papers. Nothing in this subdivision shall be construed to authorize the withholding of any resumes or applications submitted by persons who are appointed by the Governor pursuant to 2.2-106 or 2.2-107.
276	272
277	273		As used in this subdivision:
278	274
279	275		"Members of the General Assembly" means each member of the Senate of Virginia and the House of Delegates and their legislative aides when working on behalf of such member.
280	276
281	277		"Office of the Governor" means the Governor; the Governor's chief of staff, counsel, director of policy, and Cabinet Secretaries; the Assistant to the Governor for Intergovernmental Affairs; and those individuals to whom the Governor has delegated his authority pursuant to 2.2-104.
282	278
283	279		"Working papers" means those records prepared by or for a public official identified in this subdivision for his personal or deliberative use.
284	280
285	281		3. Information contained in library records that can be used to identify (i) both (a) any library patron who has borrowed or accessed material or resources from a library and (b) the material or resources such patron borrowed or accessed or (ii) any library patron under 18 years of age. For the purposes of clause (ii), access shall not be denied to the parent, including a noncustodial parent, or guardian of such library patron.
286	282
287	283		4. Contract cost estimates prepared for the confidential use of the Department of Transportation in awarding contracts for construction or the purchase of goods or services, and records and automated systems prepared for the Department's Bid Analysis and Monitoring Program.
288	284
289	285		5. Lists of registered owners of bonds issued by a political subdivision of the Commonwealth, whether the lists are maintained by the political subdivision itself or by a single fiduciary designated by the political subdivision.
290	286
291	287		6. Information furnished by a member of the General Assembly to a meeting of a standing committee, special committee, or subcommittee of his house established solely for the purpose of reviewing members' annual disclosure statements and supporting materials filed under 30-110 or of formulating advisory opinions to members on standards of conduct, or both.
292	288
293	289		7. Customer account information of a public utility affiliated with a political subdivision of the Commonwealth, including the customer's name and service address, but excluding the amount of utility service provided and the amount of money charged or paid for such utility service.
294	290
295	291		8. Personal information, as defined in 2.2-3801, (i) filed with the Virginia Housing Development Authority concerning individuals who have applied for or received loans or other housing assistance or who have applied for occupancy of or have occupied housing financed, owned or otherwise assisted by the Virginia Housing Development Authority; (ii) concerning persons participating in or persons on the waiting list for federally funded rent-assistance programs; (iii) filed with any local redevelopment and housing authority created pursuant to 36-4 concerning persons participating in or persons on the waiting list for housing assistance programs funded by local governments or by any such authority; or (iv) filed with any local redevelopment and housing authority created pursuant to 36-4 or any other local government agency concerning persons who have applied for occupancy or who have occupied affordable dwelling units established pursuant to 15.2-2304 or 15.2-2305. However, access to one's own information shall not be denied.
296	292
297	293		9. Information regarding the siting of hazardous waste facilities, except as provided in 10.1-1441, if disclosure of such information would have a detrimental effect upon the negotiating position of a governing body or on the establishment of the terms, conditions, and provisions of the siting agreement.
298	294
299	295		10. Information on the site-specific location of rare, threatened, endangered, or otherwise imperiled plant and animal species, natural communities, caves, and significant historic and archaeological sites if, in the opinion of the public body that has the responsibility for such information, disclosure of the information would jeopardize the continued existence or the integrity of the resource. This exclusion shall not apply to requests from the owner of the land upon which the resource is located.
300	296
301	297		11. Memoranda, graphics, video or audio tapes, production models, data, and information of a proprietary nature produced by or for or collected by or for the Virginia Lottery relating to matters of a specific lottery game design, development, production, operation, ticket price, prize structure, manner of selecting the winning ticket, manner of payment of prizes to holders of winning tickets, frequency of drawings or selections of winning tickets, odds of winning, advertising, or marketing, where such information not been publicly released, published, copyrighted, or patented. Whether released, published, or copyrighted, all game-related information shall be subject to public disclosure under this chapter upon the first day of sales for the specific lottery game to which it pertains.
302	298
303	299		12. Information held by the Virginia Retirement System, acting pursuant to 51.1-124.30, or a local retirement system, acting pursuant to 51.1-803, or by a local finance board or board of trustees of a trust established by one or more local public bodies to invest funds for post-retirement benefits other than pensions, acting pursuant to Article 8 ( 15.2-1544 et seq.) of Chapter 15 of Title 15.2, or by the board of visitors of the University of Virginia, acting pursuant to 23.1-2210, or by the board of visitors of The College of William and Mary in Virginia, acting pursuant to 23.1-2803, or by the Commonwealth Savers Plan, acting pursuant to 23.1-704, relating to the acquisition, holding, or disposition of a security or other ownership interest in an entity, where such security or ownership interest is not traded on a governmentally regulated securities exchange, if disclosure of such information would (i) reveal confidential analyses prepared for the board of visitors of the University of Virginia, prepared for the board of visitors of The College of William and Mary in Virginia, prepared by the retirement system, a local finance board or board of trustees, or the Commonwealth Savers Plan, or provided to the retirement system, a local finance board or board of trustees, or the Commonwealth Savers Plan under a promise of confidentiality of the future value of such ownership interest or the future financial performance of the entity and (ii) have an adverse effect on the value of the investment to be acquired, held, or disposed of by the retirement system, a local finance board or board of trustees, the board of visitors of the University of Virginia, the board of visitors of The College of William and Mary in Virginia, or the Commonwealth Savers Plan. Nothing in this subdivision shall be construed to prevent the disclosure of information relating to the identity of any investment held, the amount invested, or the present value of such investment.
304	300
305	301		13. Financial, medical, rehabilitative, and other personal information concerning applicants for or recipients of loan funds submitted to or maintained by the Assistive Technology Loan Fund Authority under Chapter 11 ( 51.5-53 et seq.) of Title 51.5.
306	302
307	303		14. Information held by the Virginia Commonwealth University Health System Authority pertaining to any of the following: an individual's qualifications for or continued membership on its medical or teaching staffs; proprietary information gathered by or in the possession of the Authority from third parties pursuant to a promise of confidentiality; contract cost estimates prepared for confidential use in awarding contracts for construction or the purchase of goods or services; information of a proprietary nature produced or collected by or for the Authority or members of its medical or teaching staffs; financial statements not publicly available that may be filed with the Authority from third parties; the identity, accounts, or account status of any customer of the Authority; consulting or other reports paid for by the Authority to assist the Authority in connection with its strategic planning and goals; the determination of marketing and operational strategies where disclosure of such strategies would be harmful to the competitive position of the Authority; and information of a proprietary nature produced or collected by or for employees of the Authority, other than the Authority's financial or administrative records, in the conduct of or as a result of study or research on medical, scientific, technical, or scholarly issues, whether sponsored by the Authority alone or in conjunction with a governmental body or a private concern, when such information has not been publicly released, published, copyrighted, or patented. This exclusion shall also apply when such information is in the possession of Virginia Commonwealth University.
308	304
309	305		15. Information held by the Department of Environmental Quality, the State Water Control Board, the State Air Pollution Control Board, or the Virginia Waste Management Board relating to (i) active federal environmental enforcement actions that are considered confidential under federal law and (ii) enforcement strategies, including proposed sanctions for enforcement actions. Upon request, such information shall be disclosed after a proposed sanction resulting from the investigation has been proposed to the director of the agency. This subdivision shall not be construed to prevent the disclosure of information related to inspection reports, notices of violation, and documents detailing the nature of any environmental contamination that may have occurred or similar documents.
310	306
311	307		16. Information related to the operation of toll facilities that identifies an individual, vehicle, or travel itinerary, including vehicle identification data or vehicle enforcement system information; video or photographic images; Social Security or other identification numbers appearing on driver's licenses; credit card or bank account data; home addresses; phone numbers; or records of the date or time of toll facility use.
312	308
313	309		17. Information held by the Virginia Lottery pertaining to (i) the social security number, tax identification number, state sales tax number, home address and telephone number, personal and lottery banking account and transit numbers of a retailer, and financial information regarding the nonlottery operations of specific retail locations and (ii) individual lottery winners, except that a winner's name, hometown, and amount won shall be disclosed. If the value of the prize won by the winner exceeds $10 million, the information described in clause (ii) shall not be disclosed unless the winner consents in writing to such disclosure.
314	310
315	311		18. Information held by the Board for Branch Pilots relating to the chemical or drug testing of a person regulated by the Board, where such person has tested negative or has not been the subject of a disciplinary action by the Board for a positive test result.
316	312
317	313		19. Information pertaining to the planning, scheduling, and performance of examinations of holder records pursuant to the Virginia Disposition of Unclaimed Property Act ( 55.1-2500 et seq.) prepared by or for the State Treasurer or his agents or employees or persons employed to perform an audit or examination of holder records.
318	314
319	315		20. Information held by the Virginia Department of Emergency Management or a local governing body relating to citizen emergency response teams established pursuant to an ordinance of a local governing body that reveal the name, address, including e-mail address, telephone or pager numbers, or operating schedule of an individual participant in the program.
320	316
321	317		21. Information held by state or local park and recreation departments and local and regional park authorities concerning identifiable individuals under the age of 18 years. However, nothing in this subdivision shall operate to prevent the disclosure of information defined as directory information under regulations implementing the federal Family Educational Rights and Privacy Act, 20 U.S.C. 1232g, unless the public body has undertaken the parental notification and opt-out requirements provided by such regulations. Access shall not be denied to the parent, including a noncustodial parent, or guardian of such person, unless the parent's parental rights have been terminated or a court of competent jurisdiction has restricted or denied such access. For such information of persons who are emancipated, the right of access may be asserted by the subject thereof. Any parent or emancipated person who is the subject of the information may waive, in writing, the protections afforded by this subdivision. If the protections are so waived, the public body shall open such information for inspection and copying.
322	318
323	319		22. Information submitted for inclusion in the Statewide Alert Network administered by the Department of Emergency Management that reveal names, physical addresses, email addresses, computer or internet protocol information, telephone numbers, pager numbers, other wireless or portable communications device information, or operating schedules of individuals or agencies, where the release of such information would compromise the security of the Statewide Alert Network or individuals participating in the Statewide Alert Network.
324	320
325	321		23. Information held by the Judicial Inquiry and Review Commission made confidential by 17.1-913.
326	322
327	323		24. Information held by the Virginia Retirement System acting pursuant to 51.1-124.30, a local retirement system acting pursuant to 51.1-803 (hereinafter collectively referred to as the retirement system), or the Commonwealth Savers Plan, acting pursuant to 23.1-704 relating to:
328	324
329	325		a. Internal deliberations of or decisions by the retirement system or the Commonwealth Savers Plan on the pursuit of particular investment strategies, or the selection or termination of investment managers, prior to the execution of such investment strategies or the selection or termination of such managers, if disclosure of such information would have an adverse impact on the financial interest of the retirement system or the Commonwealth Savers Plan; and
330	326
331	327		b. Trade secrets provided by a private entity to the retirement system or the Commonwealth Savers Plan if disclosure of such records would have an adverse impact on the financial interest of the retirement system or the Commonwealth Savers Plan.
332	328
333	329		For the records specified in subdivision b to be excluded from the provisions of this chapter, the entity shall make a written request to the retirement system or the Commonwealth Savers Plan:
334	330
335	331		(1) Invoking such exclusion prior to or upon submission of the data or other materials for which protection from disclosure is sought;
336	332
337	333		(2) Identifying with specificity the data or other materials for which protection is sought; and
338	334
339	335		(3) Stating the reasons why protection is necessary.
340	336
341	337		The retirement system or the Commonwealth Savers Plan shall determine whether the requested exclusion from disclosure meets the requirements set forth in subdivision b.
342	338
343	339		Nothing in this subdivision shall be construed to prevent the disclosure of the identity or amount of any investment held or the present value and performance of all asset classes and subclasses.
344	340
345	341		25. Information held by the Department of Corrections made confidential by former 53.1-233.
346	342
347	343		26. Information maintained by the Department of the Treasury or participants in the Local Government Investment Pool ( 2.2-4600 et seq.) and required to be provided by such participants to the Department to establish accounts in accordance with 2.2-4602.
348	344
349	345		27. Personal information, as defined in 2.2-3801, contained in the Veterans Care Center Resident Trust Funds concerning residents or patients of the Department of Veterans Services Care Centers, except that access shall not be denied to the person who is the subject of the information.
350	346
351	347		28. Information maintained in connection with fundraising activities by the Veterans Services Foundation pursuant to 2.2-2716 that reveal the address, electronic mail address, facsimile or telephone number, social security number or other identification number appearing on a driver's license or other document issued under Chapter 3 ( 46.2-300 et seq.) of Title 46.2 or the comparable law of another jurisdiction, or credit card or bank account data of identifiable donors, except that access shall not be denied to the person who is the subject of the information. Nothing in this subdivision, however, shall be construed to prevent the disclosure of information relating to the amount, date, purpose, and terms of the pledge or donation or the identity of the donor, unless the donor has requested anonymity in connection with or as a condition of making a pledge or donation. The exclusion provided by this subdivision shall not apply to protect from disclosure (i) the identities of sponsors providing grants to or contracting with the foundation for the performance of services or other work or (ii) the terms and conditions of such grants or contracts.
352	348
353	349		29. Information prepared for and utilized by the Commonwealth's Attorneys' Services Council in the training of state prosecutors or law-enforcement personnel, where such information is not otherwise available to the public and the disclosure of such information would reveal confidential strategies, methods, or procedures to be employed in law-enforcement activities or materials created for the investigation and prosecution of a criminal case.
354	350
355	351		30. Information provided to the Department of Aviation by other entities of the Commonwealth in connection with the operation of aircraft where the information would not be subject to disclosure by the entity providing the information. The entity providing the information to the Department of Aviation shall identify the specific information to be protected and the applicable provision of this chapter that excludes the information from mandatory disclosure.
356	352
357	353		31. Information created or maintained by or on the behalf of the judicial performance evaluation program related to an evaluation of any individual justice or judge made confidential by 17.1-100.
358	354
359	355		32. Information reflecting the substance of meetings in which (i) individual sexual assault cases are discussed by any sexual assault response team established pursuant to 15.2-1627.4, (ii) individual child abuse or neglect cases or sex offenses involving a child are discussed by multidisciplinary child sexual abuse response teams established pursuant to 15.2-1627.5, (iii) individual cases of abuse, neglect, or exploitation of adults as defined in 63.2-1603 are discussed by multidisciplinary teams established pursuant to 15.2-1627.5 and 63.2-1605, or (iv) individual human trafficking cases are discussed by any human trafficking response team established pursuant to 15.2-1627.6. The findings of any such team may be disclosed or published in statistical or other aggregated form that does not disclose the identity of specific individuals.
360	356
361	357		33. Information contained in the strategic plan, marketing plan, or operational plan prepared by the Virginia Economic Development Partnership Authority pursuant to 2.2-2237.1 regarding target companies, specific allocation of resources and staff for marketing activities, and specific marketing activities that would reveal to the Commonwealth's competitors for economic development projects the strategies intended to be deployed by the Commonwealth, thereby adversely affecting the financial interest of the Commonwealth. The executive summaries of the strategic plan, marketing plan, and operational plan shall not be redacted or withheld pursuant to this subdivision.
362	358
363	359		34. Information discussed in a closed session of the Physical Therapy Compact Commission or the Executive Board or other committees of the Commission for purposes set forth in subsection E of 54.1-3491.
364	360
365	361		35. Information held by the Commonwealth of Virginia Innovation Partnership Authority (the Authority), an advisory committee of the Authority, or any other entity designated by the Authority, relating to (i) internal deliberations of or decisions by the Authority on the pursuit of particular investment strategies prior to the execution of such investment strategies and (ii) trade secrets, as defined in the Uniform Trade Secrets Act ( 59.1-336 et seq.), provided by a private entity to the Authority, if such disclosure of records pursuant to clause (i) or (ii) would have an adverse impact on the financial interest of the Authority or a private entity.
366	362
367	363		36. Personal information provided to or obtained by the Virginia Lottery Gaming Commission in connection with the voluntary exclusion program administered pursuant to 58.1-4015.1 29.5-118.
368	364
369	365		37. Personal information provided to or obtained by the Virginia Lottery Gaming Commission concerning the identity of any person reporting prohibited conduct pursuant to 58.1-4043 29.5-414.
370	366
371	367		2.2-3711. Closed meetings authorized for certain limited purposes.
372	368
373	369		A. Public bodies may hold closed meetings only for the following purposes:
374	370
375	371		1. Discussion, consideration, or interviews of prospective candidates for employment; assignment, appointment, promotion, performance, demotion, salaries, disciplining, or resignation of specific public officers, appointees, or employees of any public body; and evaluation of performance of departments or schools of public institutions of higher education where such evaluation will necessarily involve discussion of the performance of specific individuals. Any teacher shall be permitted to be present during a closed meeting in which there is a discussion or consideration of a disciplinary matter that involves the teacher and some student and the student involved in the matter is present, provided the teacher makes a written request to be present to the presiding officer of the appropriate board. Nothing in this subdivision, however, shall be construed to authorize a closed meeting by a local governing body or an elected school board to discuss compensation matters that affect the membership of such body or board collectively.
376	372
377	373		2. Discussion or consideration of admission or disciplinary matters or any other matters that would involve the disclosure of information contained in a scholastic record concerning any student of any public institution of higher education in the Commonwealth or any state school system. However, any such student, legal counsel and, if the student is a minor, the student's parents or legal guardians shall be permitted to be present during the taking of testimony or presentation of evidence at a closed meeting, if such student, parents, or guardians so request in writing and such request is submitted to the presiding officer of the appropriate board.
378	374
379	375		3. Discussion or consideration of the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body.
380	376
381	377		4. The protection of the privacy of individuals in personal matters not related to public business.
382	378
383	379		5. Discussion concerning a prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business' or industry's interest in locating or expanding its facilities in the community.
384	380
385	381		6. Discussion or consideration of the investment of public funds where competition or bargaining is involved, where, if made public initially, the financial interest of the governmental unit would be adversely affected.
386	382
387	383		7. Consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body. For the purposes of this subdivision, "probable litigation" means litigation that has been specifically threatened or on which the public body or its legal counsel has a reasonable basis to believe will be commenced by or against a known party. Nothing in this subdivision shall be construed to permit the closure of a meeting merely because an attorney representing the public body is in attendance or is consulted on a matter.
388	384
389	385		8. Consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel. Nothing in this subdivision shall be construed to permit the closure of a meeting merely because an attorney representing the public body is in attendance or is consulted on a matter.
390	386
391	387		9. Discussion or consideration by governing boards of public institutions of higher education of matters relating to gifts, bequests and fund-raising activities, and of grants and contracts for services or work to be performed by such institution. However, the terms and conditions of any such gifts, bequests, grants, and contracts made by a foreign government, a foreign legal entity, or a foreign person and accepted by a public institution of higher education in the Commonwealth shall be subject to public disclosure upon written request to the appropriate board of visitors. For the purpose of this subdivision, (i) "foreign government" means any government other than the United States government or the government of a state or a political subdivision thereof, (ii) "foreign legal entity" means any legal entity (a) created under the laws of the United States or of any state thereof if a majority of the ownership of the stock of such legal entity is owned by foreign governments or foreign persons or if a majority of the membership of any such entity is composed of foreign persons or foreign legal entities or (b) created under the laws of a foreign government, and (iii) "foreign person" means any individual who is not a citizen or national of the United States or a trust territory or protectorate thereof.
392	388
393	389		10. Discussion or consideration by the boards of trustees of the Virginia Museum of Fine Arts, the Virginia Museum of Natural History, the Jamestown-Yorktown Foundation, the Fort Monroe Authority, and The Science Museum of Virginia of matters relating to specific gifts, bequests, and grants from private sources.
394	390
395	391		11. Discussion or consideration of honorary degrees or special awards.
396	392
397	393		12. Discussion or consideration of tests, examinations, or other information used, administered, or prepared by a public body and subject to the exclusion in subdivision 4 of 2.2-3705.1.
398	394
399	395		13. Discussion, consideration, or review by the appropriate House or Senate committees of possible disciplinary action against a member arising out of the possible inadequacy of the disclosure statement filed by the member, provided the member may request in writing that the committee meeting not be conducted in a closed meeting.
400	396
401	397		14. Discussion of strategy with respect to the negotiation of a hazardous waste siting agreement or to consider the terms, conditions, and provisions of a hazardous waste siting agreement if the governing body in open meeting finds that an open meeting will have an adverse effect upon the negotiating position of the governing body or the establishment of the terms, conditions and provisions of the siting agreement, or both. All discussions with the applicant or its representatives may be conducted in a closed meeting.
402	398
403	399		15. Discussion by the Governor and any economic advisory board reviewing forecasts of economic activity and estimating general and nongeneral fund revenues.
404	400
405	401		16. Discussion or consideration of medical and mental health records subject to the exclusion in subdivision 1 of 2.2-3705.5.
406	402
407	403		17. Deliberations of the Virginia Lottery Board in a licensing appeal action conducted pursuant to subsection D of 58.1-4007 29.5-707 regarding the denial or revocation of a license of a lottery sales agent; and discussion, consideration, or review of Virginia Lottery matters related to proprietary lottery game information and studies or investigations excluded from disclosure under subdivision 6 of 2.2-3705.3 and subdivision 11 of 2.2-3705.7.
408	404
409	405		18. Those portions of meetings in which the State Board of Local and Regional Jails discusses or discloses the identity of, or information tending to identify, any prisoner who (i) provides information about crimes or criminal activities, (ii) renders assistance in preventing the escape of another prisoner or in the apprehension of an escaped prisoner, or (iii) voluntarily or at the instance of a prison official renders other extraordinary services, the disclosure of which is likely to jeopardize the prisoner's life or safety.
410	406
411	407		19. Discussion of plans to protect public safety as it relates to terrorist activity or specific cybersecurity threats or vulnerabilities and briefings by staff members, legal counsel, or law-enforcement or emergency service officials concerning actions taken to respond to such matters or a related threat to public safety; discussion of information subject to the exclusion in subdivision 2 or 14 of 2.2-3705.2, where discussion in an open meeting would jeopardize the safety of any person or the security of any facility, building, structure, information technology system, or software program; or discussion of reports or plans related to the security of any governmental facility, building or structure, or the safety of persons using such facility, building or structure.
412	408
413	409		20. Discussion by the Board of the Virginia Retirement System, acting pursuant to 51.1-124.30, or of any local retirement system, acting pursuant to 51.1-803, or by a local finance board or board of trustees of a trust established by one or more local public bodies to invest funds for postemployment benefits other than pensions, acting pursuant to Article 8 ( 15.2-1544 et seq.) of Chapter 15 of Title 15.2, or by the board of visitors of the University of Virginia, acting pursuant to 23.1-2210, or by the Board of the Commonwealth Savers Plan, acting pursuant to 23.1-706, regarding the acquisition, holding or disposition of a security or other ownership interest in an entity, where such security or ownership interest is not traded on a governmentally regulated securities exchange, to the extent that such discussion (i) concerns confidential analyses prepared for the board of visitors of the University of Virginia, prepared by the retirement system, or a local finance board or board of trustees, or the Commonwealth Savers Plan or provided to the retirement system, a local finance board or board of trustees, or the Commonwealth Savers Plan under a promise of confidentiality, of the future value of such ownership interest or the future financial performance of the entity, and (ii) would have an adverse effect on the value of the investment to be acquired, held, or disposed of by the retirement system, a local finance board or board of trustees, the board of visitors of the University of Virginia, or the Commonwealth Savers Plan. Nothing in this subdivision shall be construed to prevent the disclosure of information relating to the identity of any investment held, the amount invested or the present value of such investment.
414	410
415	411		21. Those portions of meetings in which individual child death cases are discussed by the State Child Fatality Review Team established pursuant to 32.1-283.1, those portions of meetings in which individual child death cases are discussed by a regional or local child fatality review team established pursuant to 32.1-283.2, those portions of meetings in which individual death cases are discussed by family violence fatality review teams established pursuant to 32.1-283.3, those portions of meetings in which individual adult death cases are discussed by the state Adult Fatality Review Team established pursuant to 32.1-283.5, those portions of meetings in which individual adult death cases are discussed by a local or regional adult fatality review team established pursuant to 32.1-283.6, those portions of meetings in which individual death cases are discussed by overdose fatality review teams established pursuant to 32.1-283.7, those portions of meetings in which individual maternal death cases are discussed by the Maternal Mortality Review Team pursuant to 32.1-283.8, and those portions of meetings in which individual death cases of persons with developmental disabilities are discussed by the Developmental Disabilities Mortality Review Committee established pursuant to 37.2-314.1.
416	412
417	413		22. Those portions of meetings of the board of visitors of the University of Virginia or the Eastern Virginia Medical School Board of Visitors, as the case may be, and those portions of meetings of any persons to whom management responsibilities for the University of Virginia Medical Center or Eastern Virginia Medical School, as the case may be, have been delegated, in which there is discussed proprietary, business-related information pertaining to the operations of the University of Virginia Medical Center or Eastern Virginia Medical School, as the case may be, including business development or marketing strategies and activities with existing or future joint venturers, partners, or other parties with whom the University of Virginia Medical Center or Eastern Virginia Medical School, as the case may be, has formed, or forms, any arrangement for the delivery of health care, if disclosure of such information would adversely affect the competitive position of the Medical Center or Eastern Virginia Medical School, as the case may be.
418	414
419	415		23. Discussion or consideration by the Virginia Commonwealth University Health System Authority or the board of visitors of Virginia Commonwealth University of any of the following: the acquisition or disposition by the Authority of real property, equipment, or technology software or hardware and related goods or services, where disclosure would adversely affect the bargaining position or negotiating strategy of the Authority; matters relating to gifts or bequests to, and fund-raising activities of, the Authority; grants and contracts for services or work to be performed by the Authority; marketing or operational strategies plans of the Authority where disclosure of such strategies or plans would adversely affect the competitive position of the Authority; and members of the Authority's medical and teaching staffs and qualifications for appointments thereto.
420	416
421	417		24. Those portions of the meetings of the Health Practitioners' Monitoring Program Committee within the Department of Health Professions to the extent such discussions identify any practitioner who may be, or who actually is, impaired pursuant to Chapter 25.1 ( 54.1-2515 et seq.) of Title 54.1.
422	418
423	419		25. Meetings or portions of meetings of the Board of the Commonwealth Savers Plan wherein personal information, as defined in 2.2-3801, which has been provided to the Board or its employees by or on behalf of individuals who have requested information about, applied for, or entered into prepaid tuition contracts or savings trust account agreements pursuant to Chapter 7 ( 23.1-700 et seq.) of Title 23.1 is discussed.
424	420
425	421		26. Discussion or consideration, by the former Wireless Carrier E-911 Cost Recovery Subcommittee created pursuant to former 56-484.15, of trade secrets submitted by CMRS providers, as defined in 56-484.12, related to the provision of wireless E-911 service.
426	422
427	423		27. Those portions of disciplinary proceedings by any regulatory board within the Department of Professional and Occupational Regulation, Department of Health Professions, or the Board of Accountancy conducted pursuant to 2.2-4019 or 2.2-4020 during which the board deliberates to reach a decision or meetings of health regulatory boards or conference committees of such boards to consider settlement proposals in pending disciplinary actions or modifications to previously issued board orders as requested by either of the parties.
428	424
429	425		28. Discussion or consideration of information subject to the exclusion in subdivision 11 of 2.2-3705.6 by a responsible public entity or an affected locality or public entity, as those terms are defined in 33.2-1800, or any independent review panel appointed to review information and advise the responsible public entity concerning such records.
430	426
431	427		29. Discussion of the award of a public contract involving the expenditure of public funds, including interviews of bidders or offerors, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body.
432	428
433	429		30. Discussion or consideration of grant or loan application information subject to the exclusion in subdivision 17 of 2.2-3705.6 by the Commonwealth Health Research Board.
434	430
435	431		31. Discussion or consideration by the Commitment Review Committee of information subject to the exclusion in subdivision 5 of 2.2-3705.2 relating to individuals subject to commitment as sexually violent predators under Chapter 9 ( 37.2-900 et seq.) of Title 37.2.
436	432
437	433		32. Discussion or consideration of confidential proprietary information and trade secrets developed and held by a local public body providing certain telecommunication services or cable television services and subject to the exclusion in subdivision 18 of 2.2-3705.6. However, the exemption provided by this subdivision shall not apply to any authority created pursuant to the BVU Authority Act ( 15.2-7200 et seq.).
438	434
439	435		33. Discussion or consideration by a local authority created in accordance with the Virginia Wireless Service Authorities Act ( 15.2-5431.1 et seq.) of confidential proprietary information and trade secrets subject to the exclusion in subdivision 19 of 2.2-3705.6.
440	436
441	437		34. Discussion or consideration by the State Board of Elections or local electoral boards of voting security matters made confidential pursuant to 24.2-410.2 or 24.2-625.1.
442	438
443	439		35. Discussion or consideration by the Forensic Science Board or the Scientific Advisory Committee created pursuant to Article 2 ( 9.1-1109 et seq.) of Chapter 11 of Title 9.1 of criminal investigative files.
444	440
445	441		36. Discussion or consideration by the Brown v. Board of Education Scholarship Committee of information or confidential matters subject to the exclusion in subdivision A 3 of 2.2-3705.4, and meetings of the Committee to deliberate concerning the annual maximum scholarship award, review and consider scholarship applications and requests for scholarship award renewal, and cancel, rescind, or recover scholarship awards.
446	442
447	443		37. Discussion or consideration by the Virginia Port Authority of information subject to the exclusion in subdivision 1 of 2.2-3705.6 related to certain proprietary information gathered by or for the Virginia Port Authority.
448	444
449	445		38. Discussion or consideration by the Board of Trustees of the Virginia Retirement System acting pursuant to 51.1-124.30, by the Investment Advisory Committee appointed pursuant to 51.1-124.26, by any local retirement system, acting pursuant to 51.1-803, by the Board of the Commonwealth Savers Plan acting pursuant to 23.1-706, or by the Commonwealth Savers Plan's Investment Advisory Committee appointed pursuant to 23.1-702 of information subject to the exclusion in subdivision 24 of 2.2-3705.7.
450	446
451	447		39. Discussion or consideration of information subject to the exclusion in subdivision 3 of 2.2-3705.6 related to economic development.
452	448
453	449		40. Discussion or consideration by the Board of Education of information relating to the denial, suspension, or revocation of teacher licenses subject to the exclusion in subdivision 11 of 2.2-3705.3.
454	450
455	451		41. Those portions of meetings of the Virginia Military Advisory Council or any commission created by executive order for the purpose of studying and making recommendations regarding preventing closure or realignment of federal military and national security installations and facilities located in Virginia and relocation of such facilities to Virginia, or a local or regional military affairs organization appointed by a local governing body, during which there is discussion of information subject to the exclusion in subdivision 8 of 2.2-3705.2.
456	452
457	453		42. Discussion or consideration by the Board of Trustees of the Veterans Services Foundation of information subject to the exclusion in subdivision 28 of 2.2-3705.7 related to personally identifiable information of donors.
458	454
459	455		43. Discussion or consideration by the Virginia Tobacco Region Revitalization Commission of information subject to the exclusion in subdivision 23 of 2.2-3705.6 related to certain information contained in grant applications.
460	456
461	457		44. Discussion or consideration by the board of directors of the Commercial Space Flight Authority of information subject to the exclusion in subdivision 24 of 2.2-3705.6 related to rate structures or charges for the use of projects of, the sale of products of, or services rendered by the Authority and certain proprietary information of a private entity provided to the Authority.
462	458
463	459		45. Discussion or consideration of personal and proprietary information related to the resource management plan program and subject to the exclusion in (i) subdivision 25 of 2.2-3705.6 or (ii) subsection E of 10.1-104.7. This exclusion shall not apply to the discussion or consideration of records that contain information that has been certified for release by the person who is the subject of the information or transformed into a statistical or aggregate form that does not allow identification of the person who supplied, or is the subject of, the information.
464	460
465	461		46. Discussion or consideration by the Board of Directors of the Virginia Alcoholic Beverage Control Authority of information subject to the exclusion in subdivision 1 of 2.2-3705.3 related to investigations of applicants for licenses and permits and of licensees and permittees.
466	462
467	463		47. Discussion or consideration of grant, loan, or investment application records subject to the exclusion in subdivision 28 of 2.2-3705.6 for a grant, loan, or investment pursuant to Article 11 ( 2.2-2351 et seq.) of Chapter 22.
468	464
469	465		48. Discussion or development of grant proposals by a regional council established pursuant to Article 26 ( 2.2-2484 et seq.) of Chapter 24 to be submitted for consideration to the Virginia Growth and Opportunity Board.
470	466
471	467		49. Discussion or consideration of (i) individual sexual assault cases by a sexual assault response team established pursuant to 15.2-1627.4, (ii) individual child abuse or neglect cases or sex offenses involving a child by a child sexual abuse response team established pursuant to 15.2-1627.5, (iii) individual cases involving abuse, neglect, or exploitation of adults as defined in 63.2-1603 pursuant to 15.2-1627.5 and 63.2-1605, or (iv) individual human trafficking cases by any human trafficking response team established pursuant to 15.2-1627.6.
472	468
473	469		50. Discussion or consideration by the Board of the Virginia Economic Development Partnership Authority, the Joint Legislative Audit and Review Commission, or any subcommittees thereof, of the portions of the strategic plan, marketing plan, or operational plan exempt from disclosure pursuant to subdivision 33 of 2.2-3705.7.
474	470
475	471		51. Those portions of meetings of the subcommittee of the Board of the Virginia Economic Development Partnership Authority established pursuant to subsection F of 2.2-2237.3 to review and discuss information received from the Virginia Employment Commission pursuant to subdivision C 2 of 60.2-114 and the Department of Workforce Development and Advancement pursuant to subsection B of 2.2-2040.
476	472
477	473		52. Discussion or consideration by the Commonwealth of Virginia Innovation Partnership Authority (the Authority), an advisory committee of the Authority, or any other entity designated by the Authority, of information subject to the exclusion in subdivision 35 of 2.2-3705.7.
478	474
479	475		53. Deliberations of the Virginia Lottery Gaming Commission Board conducted pursuant to 58.1-4105 29.5-305 regarding the denial or revocation of a license of a casino gaming operator, or the refusal to issue, suspension of, or revocation of any license or permit related to casino gaming, and discussion, consideration, or review of matters related to investigations excluded from mandatory disclosure under subdivision 1 of 2.2-3705.3.
480	476
481	477		54. Deliberations of the Virginia Lottery Gaming Commission Board in an appeal conducted pursuant to 58.1-4007 29.5-104 regarding the denial of, revocation of, suspension of, or refusal to renew any license or permit related to sports betting and any discussion, consideration, or review of matters related to investigations excluded from mandatory disclosure under subdivision 1 of 2.2-3705.3.
482	478
483	479		55. Meetings or portions of meetings of the Board of Criminal Justice Services or the Department of Criminal Justice Services concerning the decertification of an identifiable law-enforcement or jail officer.
484	480
485	481		B. No resolution, ordinance, rule, contract, regulation or motion adopted, passed or agreed to in a closed meeting shall become effective unless the public body, following the meeting, reconvenes in open meeting and takes a vote of the membership on such resolution, ordinance, rule, contract, regulation, or motion that shall have its substance reasonably identified in the open meeting.
486	482
487	483		C. Public officers improperly selected due to the failure of the public body to comply with the other provisions of this section shall be de facto officers and, as such, their official actions are valid until they obtain notice of the legal defect in their election.
488	484
489	485		D. Nothing in this section shall be construed to prevent the holding of conferences between two or more public bodies, or their representatives, but these conferences shall be subject to the same procedures for holding closed meetings as are applicable to any other public body.
490	486
491	487		E. This section shall not be construed to (i) require the disclosure of any contract between the Department of Health Professions and an impaired practitioner entered into pursuant to Chapter 25.1 ( 54.1-2515 et seq.) of Title 54.1 or (ii) require the board of directors of any authority created pursuant to the Industrial Development and Revenue Bond Act ( 15.2-4900 et seq.), or any public body empowered to issue industrial revenue bonds by general or special law, to identify a business or industry to which subdivision A 5 applies. However, such business or industry shall be identified as a matter of public record at least 30 days prior to the actual date of the board's authorization of the sale or issuance of such bonds.
492	488
493	489		2.2-3802. Systems to which chapter inapplicable.
494	490
495	491		The provisions of this chapter shall not apply to personal information systems:
496	492
497	493		1. Maintained by any court of the Commonwealth;
498	494
499	495		2. Which may exist in publications of general circulation;
500	496
501	497		3. Contained in the Criminal Justice Information System as defined in 9.1-126 through 9.1-137 or in the Sex Offender and Crimes Against Minors Registry maintained by the Department of State Police pursuant to Chapter 9 ( 9.1-900 et seq.) of Title 9.1, except to the extent that information is required to be posted on the Internet pursuant to 9.1-913;
502	498
503	499		4. Contained in the Virginia Juvenile Justice Information System as defined in 16.1-222 through 16.1-225;
504	500
505	501		5. Maintained by agencies concerning persons required by law to be licensed in the Commonwealth to engage in the practice of any profession, in which case the names and addresses of persons applying for or possessing the license may be disseminated upon written request to a person engaged in the profession or business of offering professional educational materials or courses for the sole purpose of providing the licensees or applicants for licenses with informational materials relating solely to available professional educational materials or courses, provided the disseminating agency is reasonably assured that the use of the information will be so limited;
506	502
507	503		6. Maintained by the Parole Board, the Crime Commission, the Judicial Inquiry and Review Commission, the Virginia Racing Gaming Commission, the Virginia Criminal Sentencing Commission, and the Virginia Alcoholic Beverage Control Authority;
508	504
509	505		7. Maintained by any of the following and that deal with investigations and intelligence gathering related to criminal activity:
510	506
511	507		a. The Department of State Police;
512	508
513	509		b. The police department of the Chesapeake Bay Bridge and Tunnel Commission;
514	510
515	511		c. Police departments of cities, counties, and towns;
516	512
517	513		d. Sheriff's departments of counties and cities;
518	514
519	515		e. Campus police departments of public institutions of higher education as established by Article 3 ( 23.1-809 et seq.) of Chapter 8 of Title 23.1; and
520	516
521	517		f. The Division of Capitol Police.
522	518
523	519		8. Maintained by local departments of social services regarding alleged cases of child abuse or neglect while such cases are also subject to an ongoing criminal prosecution;
524	520
525	521		9. Maintained by the Virginia Port Authority as provided in 62.1-132.4 or 62.1-134.1;
526	522
527	523		10. Maintained by the Virginia Tourism Authority in connection with or as a result of the promotion of travel or tourism in the Commonwealth, in which case names and addresses of persons requesting information on those subjects may be disseminated upon written request to a person engaged in the business of providing travel services or distributing travel information, provided the Virginia Tourism Authority is reasonably assured that the use of the information will be so limited;
528	524
529	525		11. Maintained by the Division of Consolidated Laboratory Services of the Department of General Services and the Department of Forensic Science, which deal with scientific investigations relating to criminal activity or suspected criminal activity, except to the extent that 9.1-1104 may apply;
530	526
531	527		12. Maintained by the Department of Corrections or the Office of the State Inspector General that deal with investigations and intelligence gathering by persons acting under the provisions of Chapter 3.2 ( 2.2-307 et seq.);
532	528
533	529		13. Maintained by (i) the Office of the State Inspector General or internal audit departments of state agencies or institutions that deal with communications and investigations relating to the Fraud, Waste and Abuse Hotline or (ii) an auditor appointed by the local governing body of any county, city, or town or a school board that deals with local investigations required by 15.2-2511.2;
534	530
535	531		14. Maintained by the Department of Social Services or any local department of social services relating to public assistance fraud investigations;
536	532
537	533		15. Maintained by the Department of Social Services related to child welfare or public assistance programs when requests for personal information are made to the Department of Social Services. Requests for information from these systems shall be made to the appropriate local department of social services that is the custodian of that record. Notwithstanding the language in this section, an individual shall not be prohibited from obtaining information from the central registry in accordance with the provisions of 63.2-1515; and
538	534
539	535		16. Maintained by the Department for Aging and Rehabilitative Services related to adult services, adult protective services, or auxiliary grants when requests for personal information are made to the Department for Aging and Rehabilitative Services. Requests for information from these systems shall be made to the appropriate local department of social services that is the custodian of that record.
540	536
541	537		2.2-4002. Exemptions from chapter generally.
542	538
543	539		A. Although required to comply with 2.2-4103 of the Virginia Register Act ( 2.2-4100 et seq.), the following agencies shall be exempted from the provisions of this chapter, except to the extent that they are specifically made subject to 2.2-4024, 2.2-4030, and 2.2-4031:
544	540
545	541		1. The General Assembly.
546	542
547	543		2. Courts, any agency of the Supreme Court, and any agency that by the Constitution is expressly granted any of the powers of a court of record.
548	544
549	545		3. The Department of Wildlife Resources in promulgating regulations regarding the management of wildlife and for all case decisions rendered pursuant to any provisions of Chapters 2 ( 29.1-200 et seq.), 3 ( 29.1-300 et seq.), 4 ( 29.1-400 et seq.), 5 ( 29.1-500 et seq.), and 7 ( 29.1-700 et seq.) of Title 29.1.
550	546
551	547		4. The Virginia Housing Development Authority.
552	548
553	549		5. Municipal corporations, counties, and all local, regional, or multijurisdictional authorities created under this Code, including those with federal authorities.
554	550
555	551		6. Educational institutions operated by the Commonwealth, provided that, with respect to 2.2-4031, such educational institutions shall be exempt from the publication requirements only with respect to regulations that pertain to (i) their academic affairs, (ii) the selection, tenure, promotion, and disciplining of faculty and employees, (iii) the selection of students, and (iv) rules of conduct and disciplining of students.
556	552
557	553		7. The Milk Commission in promulgating regulations regarding (i) producers' licenses and bases, (ii) classification and allocation of milk, computation of sales, and shrinkage, and (iii) class prices for producers' milk, time and method of payment, butterfat testing, and differential.
558	554
559	555		8. The Virginia Resources Authority.
560	556
561	557		9. Agencies expressly exempted by any other provision of this Code.
562	558
563	559		10. The Department of General Services in promulgating standards for the inspection of buildings for asbestos pursuant to 2.2-1164.
564	560
565	561		11. The State Council of Higher Education for Virginia, in developing, issuing, and revising guidelines pursuant to 23.1-207.
566	562
567	563		12. The Commissioner of Agriculture and Consumer Services in adopting regulations pursuant to subsection B of 3.2-6002 and in adopting regulations pursuant to 3.2-6023.
568	564
569	565		13. The Commissioner of Agriculture and Consumer Services and the Board of Agriculture and Consumer Services in promulgating regulations pursuant to subsections B and D of 3.2-3601, subsection B of 3.2-3701, 3.2-4002, subsections B and D of 3.2-4801, 3.2-5121 and 3.2-5206, and subsection A of 3.2-5406.
570	566
571	567		14. The Board of Optometry when specifying therapeutic pharmaceutical agents, treatment guidelines, and diseases and abnormal conditions of the human eye and its adnexa for TPA-certification of optometrists pursuant to Article 5 ( 54.1-3222 et seq.) of Chapter 32 of Title 54.1.
572	568
573	569		15. The Commissioner of the Department of Veterans Services in adopting regulations pursuant to 2.2-2001.3.
574	570
575	571		16. The State Board of Education, in developing, issuing, and revising guidelines pursuant to 22.1-203.2.
576	572
577	573		17. The Virginia Racing Gaming Commission, (i) when acting by and through its duly appointed stewards or in matters related to any specific race meeting or (ii) in promulgating technical rules regulating actual live horse racing at race meetings licensed by the Commission.
578	574
579	575		18. The Virginia Small Business Financing Authority.
580	576
581	577		19. The Virginia Economic Development Partnership Authority.
582	578
583	579		20. The Board of Agriculture and Consumer Services in adopting, amending, or repealing regulations pursuant to subsection A (ii) of 59.1-156.
584	580
585	581		21. The Insurance Continuing Education Board pursuant to 38.2-1867.
586	582
587	583		22. The Board of Health in promulgating the list of diseases that shall be reported to the Department of Health pursuant to 32.1-35 and in adopting, amending, or repealing regulations pursuant to subsection C of 35.1-14 that incorporate the Food and Drug Administration's Food Code pertaining to restaurants or food service.
588	584
589	585		23. The Board of Pharmacy when specifying special subject requirements for continuing education for pharmacists pursuant to 54.1-3314.1.
590	586
591	587		24. The Virginia Department of Veterans Services when promulgating rules and regulations pursuant to 58.1-3219.7 or 58.1-3219.11.
592	588
593	589		25. The Virginia Department of Criminal Justice Services when developing, issuing, or revising any training standards established by the Criminal Justice Services Board under 9.1-102, provided such actions are authorized by the Governor in the interest of public safety.
594	590
595	591		B. Agency action relating to the following subjects shall be exempted from the provisions of this chapter:
596	592
597	593		1. Money or damage claims against the Commonwealth or agencies thereof.
598	594
599	595		2. The award or denial of state contracts, as well as decisions regarding compliance therewith.
600	596
601	597		3. The location, design, specifications, or construction of public buildings or other facilities.
602	598
603	599		4. Grants of state or federal funds or property.
604	600
605	601		5. The chartering of corporations.
606	602
607	603		6. Customary military, militia, naval, or police functions.
608	604
609	605		7. The selection, tenure, dismissal, direction, or control of any officer or employee of an agency of the Commonwealth.
610	606
611	607		8. The conduct of elections or eligibility to vote.
612	608
613	609		9. Inmates of prisons or other such facilities or parolees therefrom.
614	610
615	611		10. The custody of persons in, or sought to be placed in, mental health facilities or penal or other state institutions as well as the treatment, supervision, or discharge of such persons.
616	612
617	613		11. Traffic signs, markers, or control devices.
618	614
619	615		12. Instructions for application or renewal of a license, certificate, or registration required by law.
620	616
621	617		13. Content of, or rules for the conduct of, any examination required by law.
622	618
623	619		14. The administration of pools authorized by Chapter 47 ( 2.2-4700 et seq.).
624	620
625	621		15. Any rules for the conduct of specific lottery games, so long as such rules are not inconsistent with duly adopted regulations of the Virginia Lottery Board, and provided that such regulations are published and posted.
626	622
627	623		16. Orders condemning or closing any shellfish, finfish, or crustacea growing area and the shellfish, finfish, or crustacea located thereon pursuant to Article 2 ( 28.2-803 et seq.) of Chapter 8 of Title 28.2.
628	624
629	625		17. Any operating procedures for review of child deaths developed by the State Child Fatality Review Team pursuant to 32.1-283.1, any operating procedures for review of adult deaths developed by the Adult Fatality Review Team pursuant to 32.1-283.5, any operating procedures for review of adult deaths developed by the Maternal Mortality Review Team pursuant to 32.1-283.8, and any operating procedures for review of the deaths of persons with a developmental disability developed by the Developmental Disabilities Mortality Review Committee pursuant to 37.2-314.1.
630	626
631	627		18. The regulations for the implementation of the Health Practitioners' Monitoring Program and the activities of the Health Practitioners' Monitoring Program Committee pursuant to Chapter 25.1 ( 54.1-2515 et seq.) of Title 54.1.
632	628
633	629		19. The process of reviewing and ranking grant applications submitted to the Commonwealth Neurotrauma Initiative Advisory Board pursuant to Article 12 ( 51.5-178 et seq.) of Chapter 14 of Title 51.5.
634	630
635	631		20. Loans from the Small Business Environmental Compliance Assistance Fund pursuant to Article 4 ( 10.1-1197.1 et seq.) of Chapter 11.1 of Title 10.1.
636	632
637	633		21. The Virginia Breeders Fund created pursuant to 59.1-372 29.5-611.
638	634
639	635		22. The types of pari-mutuel wagering pools available for live or simulcast horse racing.
640	636
641	637		23. The administration of medication or other substances foreign to the natural horse.
642	638
643	639		24. Any rules adopted by the Department of Agriculture and Consumer Services Virginia Gaming Commission for the approval and conduct of game variations for the conduct of raffles, bingo, network bingo, and instant bingo games, provided that such rules are (i) consistent with Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 2 ( 29.5-200 et seq.) of Title 18.2 29.5 and (ii) published and posted.
644	640
645	641		C. Minor changes to regulations published in the Virginia Administrative Code under the Virginia Register Act ( 2.2-4100 et seq.), made by the Virginia Code Commission pursuant to 30-150, shall be exempt from the provisions of this chapter.
646	642
647	643		2.2-4346. Other exemptions for certain transactions.
648	644
649	645		The following public bodies may enter into contracts as provided in this section.
650	646
651	647		A. Contracts for certain essential election materials and services are exempted from the requirements of Articles 1 ( 2.2-4300 et seq.), 2 ( 2.2-4303 et seq.), and 5 ( 2.2-4357 et seq.) of this chapter pursuant to 24.2-602.
652	648
653	649		B. Any local school board may authorize any of its public schools or its school division to enter into contracts providing that caps and gowns, photographs, class rings, yearbooks and graduation announcements will be available for purchase or rental by students, parents, faculty or other persons using nonpublic money through the use of competitive negotiation as provided in this chapter; competitive sealed bidding is not necessarily required for such contracts. The Superintendent of Public Instruction may provide assistance to public school systems regarding this chapter and other related laws.
654	650
655	651		C. The Virginia Racing Gaming Commission, with the advice of, in consultation with, and with the consent of the Virginia Racing Commission, may designate an entity to administer and promote the Virginia Breeders Fund created pursuant to 59.1-372 29.5-611 without competitive procurement.
656	652
657	653		3.2-102. General powers and duties of the Commissioner.
658	654
659	655		A. The Commissioner shall be vested with the powers and duties set out in 2.2-601, the powers and duties herein provided, and such other powers and duties as may be prescribed by law, including those prescribed in Title 59.1. He shall be the executive officer of the Board, and shall see that its orders are carried out. He shall see to the proper execution of laws relating to the Department. Unless the Governor expressly reserves such power to himself, the Commissioner shall promote, protect, and develop the agricultural interests of the Commonwealth. The Commissioner shall develop, implement, and maintain programs within the Department including those that promote the development and marketing of the Commonwealth's agricultural products in domestic and international markets, including promotions, market development and research, marketing assistance, market information, and product grading and certification; promote the creation of new agribusiness including new crops, biotechnology and new uses of agricultural products, and the expansion of existing agribusiness within the Commonwealth; develop, promote, and maintain consumer protection programs that protect the safety and quality of the Commonwealth's food supply through food and dairy inspection activities, industry and consumer education, and information on food safety; work with other state agencies to preserve the Commonwealth's agricultural lands; ensure animal health and protect the Commonwealth's livestock industries through disease control and surveillance, maintaining animal health diagnostic laboratories, and encouraging the humane treatment and care of animals; protect public health and the environment through regulation and proper handling of pesticides, agricultural stewardship, and protection of endangered plant and insect species; protect crop and plant health and productivity; ensure consumer protection and fair trade practices in commerce; develop plans and emergency response protocols to protect the agriculture industry from bioterrorism, plant and animal diseases, and agricultural pests; assist as directed by the Governor in the Commonwealth's response to natural disasters; develop and implement programs and inspection activities to ensure that the Commonwealth's agricultural products move freely in trade domestically and internationally; and enter into agreements with federal, state, and local governments, land grant universities, and other organizations that include marketing, plant protection, pest control, pesticides, and meat and poultry inspection.
660	656
661	657		B. In addition, the Commissioner shall:
662	658
663	659		1. Establish and maintain a farm-to-school website. The purpose of the website shall be to facilitate and promote the purchase of Virginia farm products by schools, universities, and other educational institutions under the jurisdiction of the State Department of Education. The website shall present such current information as the availability of Virginia farm products, including the types and amount of products, and the names of and contact information for farmers, farm organizations, and businesses marketing such products;
664	660
665	661		2. Establish and operate a nonprofit, nonstock corporation under Chapter 10 ( 13.1-801 et seq.) of Title 13.1 as a public instrumentality exercising public and essential governmental functions to promote, develop, and sustain markets for licensed Virginia wineries and farm wineries, as defined in 4.1-100. Such corporation shall provide wholesale wine distribution services for wineries and farm wineries licensed in accordance with 4.1-206.1. The board of directors of such corporation shall be composed of the Commissioner and four members appointed by the Board, including one owner or manager of a winery or farm winery licensee that is not served by a wholesaler when the owner or manager is appointed to the board; one owner or manager of a winery or farm winery licensee that produces no more than 10,000 cases per year; and two owners or managers of wine wholesaler licensees. In making appointments to the board of directors, the Board shall consider nominations of winery and farm winery licensees submitted by the Virginia Wineries Association and wine wholesale licensees submitted by the Virginia Wine Wholesalers Association. The Commissioner shall require such corporation to report to him at least annually on its activities, including reporting the quantity of wine distributed for each winery and farm winery during the preceding year. The provisions of the Virginia Public Procurement Act ( 2.2-4300 et seq.) shall not apply to the establishment of such corporation nor to the exercise of any of its powers granted under this section;
666	662
667	663		3. Establish and operate a nonprofit, nonstock corporation under Chapter 10 ( 13.1-801 et seq.) of Title 13.1 as a public instrumentality exercising public and essential governmental functions to promote, develop, and sustain markets for Virginia breweries and limited breweries. Such corporation shall provide wholesale beer distribution services for Virginia breweries and limited breweries licensed in accordance with 4.1-206.1. The board of directors of such corporation shall be composed of the Commissioner and four members appointed by the Board, (i) two of whom shall be an owner or manager of a Virginia beer wholesale licensee, (ii) one of whom shall be an owner or manager of a brewery or limited brewery licensee, and (iii) one of whom shall be an owner or manager of a brewery or limited brewery licensee that is not served by a wholesaler at the time such owner or manager is appointed to the board of directors. In making appointments to the board of directors, the Board shall consider nominations submitted by the Virginia Beer Wholesalers Association regarding members listed in clause (i) and nominations submitted by the Virginia Craft Brewers Guild regarding members listed in clauses (ii) and (iii). At least annually, such corporation shall be required to report to the Commissioner on its activities, including reporting the quantity of beer distributed for each brewery or limited brewery licensee during the preceding year. The Commissioner shall report such information to the General Assembly. The provisions of the Virginia Public Procurement Act ( 2.2-4300 et seq.) shall not apply to the establishment of such corporation nor to the exercise of any of its powers granted under this section; and
668	664
669	665		4. Promulgate regulations in accordance with the Administrative Process Act ( 2.2-4000 et seq.) not inconsistent with the laws of Virginia necessary to carry out the provisions of Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 of Title 18.2. Such regulations may include penalties for violations; and
670	666
671	667		5. Ensure that the Department compiles and publishes the annual report relating to foreign adversary ownership of agricultural land required under 55.1-509.
672	668
673	669		3.2-6201. Horse racing excluded.
674	670
675	671		The provisions of this chapter shall not apply to horse racing, as that term is defined by 59.1-365 29.5-601.
676	672
677	673		4.1-100. Definitions.
678	674
679	675		As used in this subtitle unless the context requires a different meaning:
680	676
681	677		"Alcohol" means the product known as ethyl or grain alcohol obtained by distillation of any fermented liquor, rectified either once or more often, whatever the origin, and shall include synthetic ethyl alcohol, but shall not include methyl alcohol and alcohol completely denatured in accordance with formulas approved by the government of the United States.
682	678
683	679		"Alcohol vaporizing device" means any device, machine, or process that mixes any alcoholic beverages with pure oxygen or other gas to produce a vaporized product for the purpose of consumption by inhalation.
684	680
685	681		"Alcoholic beverages" includes alcohol, spirits, wine, and beer, and any one or more of such varieties containing one-half of one percent or more of alcohol by volume, including mixed alcoholic beverages, and every liquid or solid, powder or crystal, patented or not, containing alcohol, spirits, wine, or beer and capable of being consumed by a human being. Any liquid or solid containing more than one of the four varieties shall be considered as belonging to that variety which has the higher percentage of alcohol, however obtained, according to the order in which they are set forth in this definition; except that beer may be manufactured to include flavoring materials and other nonbeverage ingredients containing alcohol, as long as no more than 49 percent of the overall alcohol content of the finished product is derived from the addition of flavors and other nonbeverage ingredients containing alcohol for products with an alcohol content of no more than six percent by volume; or, in the case of products with an alcohol content of more than six percent by volume, as long as no more than one and one-half percent of the volume of the finished product consists of alcohol derived from added flavors and other nonbeverage ingredients containing alcohol.
686	682
687	683		"Arts venue" means a commercial or nonprofit establishment that is open to the public and in which works of art are sold or displayed.
688	684
689	685		"Authority" means the Virginia Alcoholic Beverage Control Authority created pursuant to this subtitle.
690	686
691	687		"Barrel" means any container or vessel having a capacity of more than 43 ounces.
692	688
693	689		"Bed and breakfast establishment" means any establishment (i) having no more than 15 bedrooms; (ii) offering to the public, for compensation, transitory lodging or sleeping accommodations; and (iii) offering at least one meal per day, which may but need not be breakfast, to each person to whom overnight lodging is provided. For purposes of the licensing requirements of this subtitle, "bed and breakfast establishment" includes any property offered to the public for short-term rental, as that term is defined in 15.2-983, other than a hotel as defined in this section, regardless of whether a meal is offered to each person to whom overnight lodging is provided.
694	690
695	691		"Beer" means any alcoholic beverage obtained by the fermentation of an infusion or decoction of barley, malt, and hops or of any similar products in drinkable water and containing one-half of one percent or more of alcohol by volume.
696	692
697	693		"Board" means the Board of Directors of the Virginia Alcoholic Beverage Control Authority.
698	694
699	695		"Bottle" means any vessel intended to contain liquids and having a capacity of not more than 43 ounces.
700	696
701	697		"Bus" means a motor vehicle that (i) is operated by a common carrier licensed under Chapter 20 ( 46.2-2000 et seq.) of Title 46.2 to transport passengers for compensation over the highways of the Commonwealth on regular or irregular routes of not less than 100 miles, (ii) seats no more than 24 passengers, (iii) is 40 feet in length or longer, (iv) offers wireless Internet services, (v) is equipped with charging stations at every seat for cellular phones or other portable devices, and (vi) during the transportation of passengers, is staffed by an attendant who has satisfied all training requirements set forth in this subtitle or Board regulation.
702	698
703	699		"Club" means any private nonprofit corporation or association which is the owner, lessee, or occupant of an establishment operated solely for a national, social, patriotic, political, athletic, or other like purpose, but not for pecuniary gain, the advantages of which belong to all of the members. It also means the establishment so operated. A corporation or association shall not lose its status as a club because of the conduct of charitable gaming conducted pursuant to Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 2 ( 29.5-200 et seq.) of Title 18.2 29.5 in which nonmembers participate frequently or in large numbers, provided that no alcoholic beverages are served or consumed in the room where such charitable gaming is being conducted while such gaming is being conducted and that no alcoholic beverages are made available upon the premises to any person who is neither a member nor a bona fide guest of a member.
704	700
705	701		Any such corporation or association which has been declared exempt from federal and state income taxes as one which is not organized and operated for pecuniary gain or profit shall be deemed a nonprofit corporation or association.
706	702
707	703		"Commercial lifestyle center" means a mixed-use commercial development covering a minimum of 10 acres of land and having at least 100,000 square feet of retail space featuring national specialty chain stores and a combination of dining, entertainment, office, residential, or hotel establishments located in a physically integrated outdoor setting that is pedestrian friendly and that is governed by a commercial owners' association that is responsible for the management, maintenance, and operation of the common areas thereof.
708	704
709	705		"Container" means any barrel, bottle, carton, keg, vessel, or other receptacle used for holding alcoholic beverages.
710	706
711	707		"Contract winemaking facility" means the premises of a licensed winery or farm winery that obtains grapes, fruits, and other agricultural products from a person holding a winery or farm winery license and crushes, processes, ferments, bottles, or provides any combination of such services pursuant to an agreement with the winery or farm winery licensee. For all purposes of this subtitle, wine produced by a contract winemaking facility for a winery or farm winery shall be considered to be wine owned and produced by the winery or farm winery that supplied the grapes, fruits, or other agricultural products used in the production of the wine. The contract winemaking facility shall have no right to sell the wine so produced, unless the terms of payment have not been fulfilled in accordance with the contract. The contract winemaking facility may charge the winery or farm winery for its services. A winery licensee may utilize contract winemaking services only for the manufacture or processing of wine of which no less than 90 percent of the grapes, fruits, and other agricultural products used to make such wine are grown in the Commonwealth.
712	708
713	709		"Convenience grocery store" means an establishment that (i) has an enclosed room in a permanent structure where stock is displayed and offered for sale and (ii) maintains an inventory of edible items intended for human consumption consisting of a variety of such items of the types normally sold in grocery stores.
714	710
715	711		"Culinary lodging resort" means a facility (i) having not less than 13 overnight guest rooms in a building that has at least 20,000 square feet of indoor floor space; (ii) located on a farm in the Commonwealth with at least 1,000 acres of land zoned agricultural; (iii) equipped with a full-service kitchen; and (iv) offering to the public, for compensation, at least one meal per day, lodging, and recreational and educational activities related to farming, livestock, and other rural activities.
716	712
717	713		"Delicatessen" means an establishment that sells a variety of prepared foods or foods requiring little preparation, such as cheeses, salads, cooked meats, and related condiments.
718	714
719	715		"Designated area" means a room or area approved by the Board for on-premises licensees.
720	716
721	717		"Dining area" means a public room or area in which meals are regularly served.
722	718
723	719		"Drugstore" means an establishment that sells medicines prepared by a licensed pharmacist pursuant to a prescription and other medicines and items for home and general use.
724	720
725	721		"Establishment" means any place where alcoholic beverages of one or more varieties are lawfully manufactured, sold, or used.
726	722
727	723		"Farm winery" means (i) an establishment or cooperative located in the Commonwealth on land zoned agricultural that has (a) a vineyard, orchard, or similar growing area that produces fruits or other agricultural products used to manufacture the wine of such farm winery, subject to the requirements set forth in 4.1-219, and (b) facilities for fermenting and bottling wine on the premises where such farm winery manufactures wine that contains not more than 21 percent alcohol by volume or (ii) an accredited public or private institution of higher education, provided that (a) no wine manufactured by the institution shall be sold, (b) the wine manufactured by the institution shall be used solely for research and educational purposes, (c) the wine manufactured by the institution shall be stored on the premises of such farm winery that shall be separate and apart from all other facilities of the institution, and (d) such farm winery is operated in strict conformance with the requirements of this clause (ii) and Board regulations. As used in this definition, the term "cooperative" means a cooperative formed by an association of individuals for the purpose of manufacturing wine. In determining whether a cooperative licensed as a farm winery has met the requirements set forth in clause (i), the Board shall consider all land in the Commonwealth that is owned or leased by a member of the cooperative. For purposes of this definition, "land zoned agricultural" means (1) land zoned as an agricultural district or classification or (2) land otherwise permitted by a locality for farm winery use. For purposes of this definition, "land zoned agricultural" does not include land zoned "residential conservation." Except for the limitation on land zoned "residential conservation," nothing in the definition of "land zoned agricultural" shall otherwise limit or affect local zoning authority.
728	724
729	725		"Gift shop" means any bona fide retail store selling, predominantly, gifts, books, souvenirs, specialty items relating to history, original and handmade arts and products, collectibles, crafts, and floral arrangements, which is open to the public on a regular basis. Such shop shall be a permanent structure where stock is displayed and offered for sale and which has facilities to properly secure any stock of wine or beer. Such shop may be located (i) on the premises or grounds of a government registered national, state or local historic building or site or (ii) within the premises of a museum. The Board shall consider the purpose, characteristics, nature, and operation of the shop in determining whether it shall be considered a gift shop.
730	726
731	727		"Gourmet brewing shop" means an establishment which sells to persons to whom wine or beer may lawfully be sold, ingredients for making wine or brewing beer, including packaging, and rents to such persons facilities for manufacturing, fermenting and bottling such wine or beer.
732	728
733	729		"Gourmet oyster house" means an establishment that (i) is located on the premises of a commercial marina, (ii) is permitted by the Department of Health to serve oysters and other fresh seafood for consumption on the premises, and (iii) offers to the public events for the purpose of featuring and educating the consuming public about local oysters and other seafood products.
734	730
735	731		"Gourmet shop" means an establishment provided with adequate inventory, shelving, and storage facilities, where, in consideration of payment, substantial amounts of domestic and imported wines and beers of various types and sizes and related products such as cheeses and gourmet foods are habitually furnished to persons.
736	732
737	733		"Government store" means a store established by the Authority for the sale of alcoholic beverages.
738	734
739	735		"Grocery store" means an establishment that sells food and other items intended for human consumption, including a variety of ingredients commonly used in the preparation of meals.
740	736
741	737		"Historic cinema house" means a nonprofit establishment exempt from taxation under 501(c)(3) of the Internal Revenue Code that was built prior to 1970 and that exists for the primary purpose of showing motion pictures to the public.
742	738
743	739		"Hotel" means any duly licensed establishment, provided with special space and accommodation, where, in consideration of payment, food and lodging are habitually furnished to persons, and which has four or more bedrooms. It shall also mean the person who operates such hotel.
744	740
745	741		"Interdicted person" means a person to whom the sale of alcoholic beverages is prohibited by order pursuant to this subtitle.
746	742
747	743		"Internet wine and beer retailer" means a person who owns or operates an establishment with adequate inventory, shelving, and storage facilities, where, in consideration of payment, Internet or telephone orders are taken and shipped directly to consumers and which establishment is not a retail store open to the public.
748	744
749	745		"Intoxicated" means a condition in which a person has drunk enough alcoholic beverages to observably affect his manner, disposition, speech, muscular movement, general appearance, or behavior.
750	746
751	747		"Licensed" means the holding of a valid license granted by the Authority.
752	748
753	749		"Licensee" means any person to whom a license has been granted by the Authority.
754	750
755	751		"Liqueur" means any of a class of highly flavored alcoholic beverages that do not exceed an alcohol content of 25 percent by volume.
756	752
757	753		"Low alcohol beverage cooler" means a drink containing one-half of one percent or more of alcohol by volume, but not more than seven and one-half percent alcohol by volume, and consisting of spirits mixed with nonalcoholic beverages or flavoring or coloring materials; it may also contain water, fruit juices, fruit adjuncts, sugar, carbon dioxide, preservatives or other similar products manufactured by fermenting fruit or fruit juices. Low alcohol beverage coolers shall be treated as wine for all purposes of this subtitle, except that low alcohol beverage coolers may be manufactured by a licensed distiller or a distiller located outside the Commonwealth.
758	754
759	755		"Marina store" means an establishment that is located on the same premises as a marina, is operated by the owner of such marina, and sells food and nautical and fishing supplies.
760	756
761	757		"Meals" means, for a mixed beverage license, an assortment of foods commonly ordered in bona fide, full-service restaurants as principal meals of the day. Such restaurants shall include establishments specializing in full course meals with a single substantial entree.
762	758
763	759		"Member of a club" means (i) a person who maintains his membership in the club by the payment of monthly, quarterly, or annual dues in the manner established by the rules and regulations thereof or (ii) a person who is a member of a bona fide auxiliary, local chapter, or squadron composed of direct lineal descendants of a bona fide member, whether alive or deceased, of a national or international organization to which an individual lodge holding a club license is an authorized member in the same locality. It shall also mean a lifetime member whose financial contribution is not less than 10 times the annual dues of resident members of the club, the full amount of such contribution being paid in advance in a lump sum.
764	760
765	761		"Mixed beverage" or "mixed alcoholic beverage" means a drink composed in whole or in part of spirits.
766	762
767	763		"Mixer" means any prepackaged ingredients containing beverages or flavoring or coloring materials, and which may also contain water, fruit juices, fruit adjuncts, sugar, carbon dioxide, or preservatives which are not commonly consumed unless combined with alcoholic beverages, whether or not such ingredients contain alcohol. Such specialty beverage product shall be manufactured or distributed by a Virginia corporation.
768	764
769	765		"Municipal golf course" means any golf course that is owned by any town incorporated in 1849 and which is the county seat of Smyth County.
770	766
771	767		"Performing arts facility" means an indoor or outdoor amphitheater, arena, multipurpose theater, or similar facility at which live musical, dance, theatre, or similar performances, the types of which are approved by the Authority, are performed, provided that the facility has stationary stadium or similar seating for more than 500 persons.
772	768
773	769		"Place or premises" means the real estate, together with any buildings or other improvements thereon, designated in the application for a license as the place at which the manufacture, bottling, distribution, use or sale of alcoholic beverages shall be performed, except that portion of any such building or other improvement actually and exclusively used as a private residence.
774	770
775	771		"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 equity ownership of any person that is a licensee of the Authority, 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 equity ownership. "Principal stockholder" does not include a broker-dealer registered under the Securities Exchange Act of 1934, as amended, that holds in inventory shares for sale on the financial markets for a publicly traded corporation holding, directly or indirectly, a license from the Authority.
776	772
777	773		"Public place" means any place, building, or conveyance to which the public has, or is permitted to have, access, including restaurants, soda fountains, hotel dining areas, lobbies and corridors of hotels, and any park, place of public resort or amusement, highway, street, lane, or sidewalk adjoining any highway, street, or lane.
778	774
779	775		"Public place" does not include (i) hotel or restaurant dining areas or ballrooms while in use for private meetings or private parties limited in attendance to members and guests of a particular group, association or organization; (ii) restaurants licensed by the Authority in office buildings or industrial or similar facilities while such restaurant is closed to the public and in use for private meetings or parties limited in attendance to employees and nonpaying guests of the owner or a lessee of all or part of such building or facility; (iii) offices, office buildings or industrial facilities while closed to the public and in use for private meetings or parties limited in attendance to employees and nonpaying guests of the owner or a lessee of all or part of such building or facility; or (iv) private recreational or chartered boats which are not licensed by the Board and on which alcoholic beverages are not sold.
780	776
781	777		"Residence" means any building or part of a building or structure where a person resides, but does not include any part of a building that is not actually and exclusively used as a private residence, nor any part of a hotel or club other than a private guest room thereof.
782	778
783	779		"Resort complex" means a facility (i) with a hotel owning year-round sports and recreational facilities located contiguously on the same property; (ii) owned by a nonstock, nonprofit, taxable corporation with voluntary membership which, as its primary function, makes available golf, ski, and other recreational facilities both to its members and to the general public; or (iii) operated by a corporation that operates as a management company which, as its primary function, makes available (a) vacation accommodations, guest rooms, or dwelling units and (b) golf, ski, and other recreational facilities to members of the managed entities and the general public. The hotel or corporation shall have or manage a minimum of 140 private guest rooms or dwelling units contained on not less than 50 acres, whether or not contiguous to the licensed premises; if the guest rooms or dwelling units are located on property that is not contiguous to the licensed premises, such guest rooms and dwelling units shall be located within the same locality. The Authority may consider the purpose, characteristics, and operation of the applicant establishment in determining whether it shall be considered as a resort complex. All other pertinent qualifications established by the Board for a hotel operation shall be observed by such licensee.
784	780
785	781		"Restaurant" means, for a wine and beer license or a limited mixed beverage restaurant license, any establishment provided with special space and accommodation, where, in consideration of payment, meals or other foods prepared on the premises are regularly sold.
786	782
787	783		"Restaurant" means, for a mixed beverage license other than a limited mixed beverage restaurant license, an established place of business (i) where meals with substantial entrees are regularly sold and (ii) which has adequate facilities and sufficient employees for cooking, preparing, and serving such meals for consumption at tables in dining areas on the premises, and includes establishments specializing in full course meals with a single substantial entree.
788	784
789	785		"Sale" and "sell" includes soliciting or receiving an order for; keeping, offering or exposing for sale; peddling, exchanging or bartering; or delivering otherwise than gratuitously, by any means, alcoholic beverages.
790	786
791	787		"Sangria" means a drink consisting of red or white wine mixed with some combination of sweeteners, fruit, fruit juice, soda, or soda water that may also be mixed with brandy, triple sec, or other similar spirits.
792	788
793	789		"Special agent" means an employee of the Virginia Alcoholic Beverage Control Authority whom the Board has designated as a law-enforcement officer pursuant to 4.1-105.
794	790
795	791		"Special event" means an event sponsored by a duly organized nonprofit corporation or association and conducted for an athletic, charitable, civic, educational, political, or religious purpose.
796	792
797	793		"Spirits" means any beverage that contains alcohol obtained by distillation mixed with drinkable water and other substances, in solution, and includes, among other things, brandy, rum, whiskey, and gin, or any one or more of the last four named ingredients, but shall not include any such liquors completely denatured in accordance with formulas approved by the United States government.
798	794
799	795		"Sports facility" means a coliseum, stadium, racetrack, or similar facility at which professional sports, as defined in 58.1-4030 29.5-400, or similar events, the types of which are approved by the Authority, are conducted.
800	796
801	797		"Wine" means any alcoholic beverage, including cider, obtained by the fermentation of the natural sugar content of fruits or other agricultural products containing (i) sugar, including honey and milk, either with or without additional sugar; (ii) one-half of one percent or more of alcohol by volume; and (iii) no product of distillation. "Wine" includes any wine to which wine spirits have been added, as provided in the Internal Revenue Code, to make products commonly known as "fortified wine" which do not exceed an alcohol content of 21 percent by volume.
802	798
803	799		"Wine cooler" means a drink containing one-half of one percent or more of alcohol by volume, and not more than three and two-tenths percent of alcohol by weight or four percent by volume consisting of wine mixed with nonalcoholic beverages or flavoring or coloring materials, and which may also contain water, fruit juices, fruit adjuncts, sugar, carbon dioxide, or preservatives and shall include other similar products manufactured by fermenting fruit or fruit juices. Wine coolers and similar fermented fruit juice beverages shall be treated as wine for all purposes except for taxation under 4.1-236.
804	800
805	801		"With or without meals" means the selling and serving of alcoholic beverages by retail licensees for on-premises consumption whether or not accompanied by food so long as the total food-beverage ratio required by 4.1-206.3, or the monthly food sale requirement established by Board regulation, is met by such retail licensee.
806	802
807	803		4.1-206.3. (Effective until July 1, 2026) Retail licenses.
808	804
809	805		A. The Board may grant the following mixed beverages licenses:
810	806
811	807		1. Mixed beverage restaurant licenses, which shall authorize the licensee to sell and serve mixed beverages for on-premises consumption in dining areas and other designated areas of such restaurant or off-premises consumption. Such license may be granted only to persons (i) who operate a restaurant and (ii) whose gross receipts from the sale of food cooked, or prepared, and consumed on the premises and nonalcoholic beverages served on the premises, after issuance of such license, amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food. For the purposes of this subdivision, other designated areas shall include outdoor dining areas, whether or not contiguous to the licensed premises, which outdoor dining areas may have more than one means of ingress and egress to an adjacent public thoroughfare, provided such areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201.
812	808
813	809		If the restaurant is located on the premises of a hotel or motel with no fewer than four permanent bedrooms where food and beverage service is customarily provided by the restaurant in designated areas, bedrooms, and other private rooms of such hotel or motel, such licensee may (a) sell and serve mixed beverages for on-premises consumption in such designated areas, bedrooms, and other private rooms or off-premises consumption and (b) sell spirits packaged in original closed containers purchased from the Board for on-premises consumption to registered guests and at scheduled functions of such hotel or motel only in such bedrooms or private rooms. However, with regard to a hotel classified as a resort complex, the Board may authorize the sale and on-premises consumption of alcoholic beverages in all areas within the resort complex deemed appropriate by the Board. Nothing herein shall prohibit any person from keeping and consuming his own lawfully acquired spirits in bedrooms or private rooms.
814	810
815	811		If the restaurant is located on the premises of and operated by a private, nonprofit, or profit club exclusively for its members and their guests, or members of another private, nonprofit, or profit club in another city with which it has an agreement for reciprocal dining privileges, such license shall also authorize the licensees to (1) sell and serve mixed beverages for on-premises or off-premises consumption and (2) sell spirits that are packaged in original closed containers with a maximum capacity of two fluid ounces or 50 milliliters and purchased from the Board for on-premises consumption. Where such club prepares no food in its restaurant but purchases its food requirements from a restaurant licensed by the Board and located on another portion of the premises of the same hotel or motel building, this fact shall not prohibit the granting of a license by the Board to such club qualifying in all other respects. The club's gross receipts from the sale of nonalcoholic beverages consumed on the premises and food resold to its members and guests and consumed on the premises shall amount to at least 45 percent of its gross receipts from the sale of mixed beverages and food. The food sales made by a restaurant to such a club shall be excluded in any consideration of the qualifications of such restaurant for a license from the Board.
816	812
817	813		If the restaurant is located on the premises of and operated by a municipal golf course, the Board shall recognize the seasonal nature of the business and waive any applicable monthly food sales requirements for those months when weather conditions may reduce patronage of the golf course, provided that prepared food, including meals, is available to patrons during the same months. The gross receipts from the sale of food cooked, or prepared, and consumed on the premises and nonalcoholic beverages served on the premises, after the issuance of such license, shall amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food on an annualized basis.
818	814
819	815		If the restaurant is located on the premises of and operated by a culinary lodging resort, such license shall authorize the licensee to (A) sell alcoholic beverages, without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises, for off-premises consumption or for on-premises consumption in areas upon the licensed premises approved by the Board and other designated areas of the resort, including outdoor areas under the control of the licensee, and (B) permit the possession and consumption of lawfully acquired alcoholic beverages by persons to whom overnight lodging is being provided in bedrooms and private guest rooms.
820	816
821	817		If the restaurant is located on the premises of a mixed beverage casino licensee owned by an operator licensed under Article Chapter 3 ( 58.1-4108 29.5-300 et seq.) of Chapter 41 of Title 58.1 29.5, such mixed beverage restaurant license shall authorize the licensee to sell alcoholic beverages for on-premises consumption on the licensed premises of the restaurant during all hours of operation of the mixed beverage casino licensee. Any alcoholic beverages purchased from such restaurant may be (I) taken onto the premises of the mixed beverage casino licensee and (II) possessed or consumed in areas designated by the Board, after consultation with the mixed beverage casino licensee. Designated areas may include any areas on the premises of the mixed beverage casino licensee, including entertainment venues, conference rooms, private rooms, hotels, pools, marinas, or green spaces. Alcoholic beverages purchased from a restaurant pursuant to this subdivision shall be contained in glassware or a paper, plastic, or similar disposable container that clearly displays the name or logo of the restaurant from which the alcoholic beverage was purchased.
822	818
823	819		The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption and in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
824	820
825	821		2. Mixed beverage caterer's licenses, which may be granted only to a person regularly engaged in the business of providing food and beverages to others for service at private gatherings or at special events, which shall authorize the licensee to sell and serve alcoholic beverages for on-premises consumption. The annual gross receipts from the sale of food cooked and prepared for service and nonalcoholic beverages served at gatherings and events referred to in this subdivision shall amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food.
826	822
827	823		3. Mixed beverage limited caterer's licenses, which may be granted only to a person regularly engaged in the business of providing food and beverages to others for service at private gatherings or at special events, not to exceed 12 gatherings or events per year, which shall authorize the licensee to sell and serve alcoholic beverages for on-premises consumption. The annual gross receipts from the sale of food cooked and prepared for service and nonalcoholic beverages served at gatherings and events referred to in this subdivision shall amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food.
828	824
829	825		4. Mixed beverage carrier licenses to (i) persons operating a common carrier of passengers by train, boat, bus, or airplane, which shall authorize the licensee to sell and serve mixed beverages anywhere in the Commonwealth to passengers while in transit aboard any such common carrier, and in designated rooms of establishments of air carriers at airports in the Commonwealth and (ii) financial institutions, subsidiaries of a financial institution, or persons approved by the applicable airport authority that have entered into a contract with a financial institution or subsidiary of a financial institution to operate a passenger lounge, which shall authorize the licensee to sell and serve mixed beverages in designated areas of a passenger lounge for ticketed air carrier passengers that is located within an airport in the Commonwealth. For purposes of supplying its airplanes, as well as any airplanes of a licensed express carrier flying under the same brand, an air carrier licensee may appoint an authorized representative to load alcoholic beverages onto the same airplanes and to transport and store alcoholic beverages at or in close proximity to the airport where the alcoholic beverages will be delivered onto airplanes of the air carrier and any such licensed express carrier. The air carrier licensee shall (a) designate for purposes of its license all locations where the inventory of alcoholic beverages may be stored and from which the alcoholic beverages will be delivered onto airplanes of the air carrier and any such licensed express carrier and (b) maintain records of all alcoholic beverages to be transported, stored, and delivered by its authorized representative. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
830	826
831	827		For the purposes of this subdivision:
832	828
833	829		"Financial institution" means any bank, trust company, savings institution, industrial loan association, consumer finance company, or credit union.
834	830
835	831		"Passenger lounge" means any restricted-access passenger waiting room or lounge leased to persons by the applicable airport authority in which food and beverage services are provided to ticketed passengers.
836	832
837	833		5. Annual mixed beverage sports facility licenses to persons operating a sports facility or food concessions at a sports facility, which shall authorize the licensee to sell mixed beverages during any event and immediately subsequent thereto to patrons within all seating areas, concourses, walkways, concession areas, and additional locations designated by the Board (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
838	834
839	835		6. Limited mixed beverage restaurant licenses, which shall authorize the licensee to sell and serve dessert wines as defined by Board regulation and no more than six varieties of liqueurs, which liqueurs shall be combined with coffee or other nonalcoholic beverages, for on-premises consumption in dining areas of the restaurant or off-premises consumption. Such license may be granted only to persons who operate a restaurant and in no event shall the sale of such wine or liqueur-based drinks, together with the sale of any other alcoholic beverages, exceed 10 percent of the total annual gross sales of all food and alcoholic beverages. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
840	836
841	837		7. Annual mixed beverage performing arts facility licenses, which shall (i) authorize the licensee to sell, on the dates of performances or events, alcoholic beverages in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption in all seating areas, concourses, walkways, concession areas, similar facilities, and other areas upon the licensed premises approved by the Board and (ii) automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1. Such licenses may be granted to persons operating a performing arts facility or food concessions at a performing arts facility.
842	838
843	839		8. Combined mixed beverage restaurant and caterer's licenses, which may be granted to any restaurant or hotel that meets the qualifications for both a mixed beverage restaurant pursuant to subdivision 1 and mixed beverage caterer pursuant to subdivision 2 for the same business location, and which license shall authorize the licensee to operate as both a mixed beverage restaurant and mixed beverage caterer at the same business premises designated in the license, with a common alcoholic beverage inventory for purposes of the restaurant and catering operations. Such licensee shall meet the separate food qualifications established for the mixed beverage restaurant license pursuant to subdivision 1 and mixed beverage caterer's license pursuant to subdivision 2. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
844	840
845	841		9. Bed and breakfast licenses, which shall authorize the licensee to (i) serve alcoholic beverages in dining areas, private guest rooms, and other designated areas to persons to whom overnight lodging is being provided, with or without meals, for on-premises consumption only in such rooms and areas, and without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises and (ii) permit the consumption of lawfully acquired alcoholic beverages by persons to whom overnight lodging is being provided in (a) bedrooms or private guest rooms or (b) other designated areas of the bed and breakfast establishment. For purposes of this subdivision, "other designated areas" includes outdoor dining areas, whether or not contiguous to the licensed premises, which may have more than one means of ingress and egress to an adjacent public thoroughfare, provided that such outdoor dining areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201.
846	842
847	843		10. Museum licenses, which may be issued to nonprofit museums exempt from taxation under 501(c)(3) of the Internal Revenue Code, which shall authorize the licensee to (i) permit the consumption of lawfully acquired alcoholic beverages on the premises of the licensee by any bona fide member and guests thereof and (ii) serve alcoholic beverages on the premises of the licensee to any bona fide member and guests thereof. However, alcoholic beverages shall not be sold or charged for in any way by the licensee. The privileges of this license shall be limited to the premises of the museum, regularly occupied and utilized as such.
848	844
849	845		11. Commercial lifestyle center licenses, which may be issued only to a commercial owners' association governing a commercial lifestyle center, which shall authorize any retail on-premises restaurant licensee that is a tenant of the commercial lifestyle center to sell alcoholic beverages to any bona fide customer to whom alcoholic beverages may be lawfully sold for consumption on that portion of the licensed premises of the commercial lifestyle center designated by the Board, including (i) plazas, seating areas, concourses, walkways, or such other similar areas and (ii) the premises of any tenant location of the commercial lifestyle center that is not a retail licensee of the Board, upon approval of such tenant, but excluding any parking areas. Only alcoholic beverages purchased from such retail on-premises restaurant licensees may be consumed on the licensed premises of the commercial lifestyle center, and such alcoholic beverages shall be contained in paper, plastic, or similar disposable containers with the name or logo of the restaurant licensee that sold the alcoholic beverage clearly displayed. Alcoholic beverages shall not be sold or charged for in any way by the commercial lifestyle center licensee. The licensee shall post appropriate signage clearly demarcating for the public the boundaries of the licensed premises; however, no physical barriers shall be required for this purpose. The licensee shall provide adequate security for the licensed premises to ensure compliance with the applicable provisions of this subtitle and Board regulations.
850	846
851	847		12. Mixed beverage port restaurant licenses, which shall authorize the licensee to sell and serve mixed beverages for consumption in dining areas and other designated areas of such restaurant. Such license may be granted only to persons operating a business (i) that is primarily engaged in the sale of meals; (ii) that is located on property owned by the United States government or an agency thereof and used as a port of entry to or egress from the United States; and (iii) whose gross receipts from the sale of food cooked, or prepared, and consumed on the premises and nonalcoholic beverages served on the premises, after issuance of such license, amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food. For the purposes of this subdivision, other designated areas shall include outdoor dining areas, whether or not contiguous to the licensed premises, which outdoor dining areas may have more than one means of ingress and egress to an adjacent public thoroughfare, provided such areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
852	848
853	849		13. Annual mixed beverage special events licenses to (i) a duly organized nonprofit corporation or association operating either a performing arts facility or an art education and exhibition facility; (ii) a nonprofit corporation or association chartered by Congress for the preservation of sites, buildings, and objects significant in American history and culture; (iii) persons operating an agricultural event and entertainment park or similar facility that has a minimum of 50,000 square feet of indoor exhibit space and equine and other livestock show areas, which includes barns, pavilions, or other structures equipped with roofs, exterior walls, and open-door or closed-door access; or (iv) a locality for special events conducted on the premises of a museum for historic interpretation that is owned and operated by the locality. The operation in all cases shall be upon premises owned by such licensee or occupied under a bona fide lease, the original term of which was for more than one year's duration. Such license shall authorize the licensee to sell alcoholic beverages during scheduled events and performances for on-premises consumption in areas upon the licensed premises approved by the Board.
854	850
855	851		14. Mixed beverage casino licenses, which shall authorize the licensee to (i) sell and serve mixed beverages for on-premises consumption in areas designated by the Board, after consultation with the mixed beverage casino licensee, without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises and (ii) provide complimentary mixed beverages to patrons for on-premises consumption in private areas or restricted access areas designated by the Board, after consultation with the mixed beverage casino licensee. Designated areas may include any areas on the premises of the mixed beverage casino licensee, including entertainment venues, private rooms, conference rooms, hotels, pools, marinas, or green spaces. The granting of a license pursuant to this subdivision shall authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption and in closed containers for off-premises consumption in accordance with the provisions of this subdivision governing mixed beverages; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1. Notwithstanding any law or regulation to the contrary, a mixed beverage casino licensee may exercise the privileges of its license as set forth in this subdivision during all hours of operation of the casino gaming establishment; however, such licensee shall not sell wine or beer for off-premises consumption between the hours of 12 a.m. and 6 a.m.
856	852
857	853		A mixed beverage casino licensee may (a) provide patrons gifts of alcoholic beverages in closed containers for personal consumption off the licensed premises or in areas designated by the Board, after consultation with the mixed beverage casino licensee, and (b) enable patrons who participate in a loyalty or reward credit program to redeem credits for the purchase of alcoholic beverages for on-premises consumption. A summary of the operation of such loyalty or reward credit program shall be provided to the Board upon request.
858	854
859	855		A mixed beverage casino license may only be issued to a casino gaming establishment owned by an operator licensed under Article Chapter 3 ( 58.1-4108 29.5-300 et seq.) of Chapter 41 of Title 58.1 29.5.
860	856
861	857		B. The Board may grant an on-and-off-premises wine and beer license to the following:
862	858
863	859		1. Hotels, restaurants, and clubs, which shall authorize the licensee to sell wine and beer (i) in closed containers for off-premises consumption or (ii) for on-premises consumption, either with or without meals, in dining areas and other designated areas of such restaurants, or in dining areas, private guest rooms, and other designated areas of such hotels or clubs, for consumption only in such rooms and areas. However, with regard to a hotel classified by the Board as (a) a resort complex, the Board may authorize the sale and consumption of alcoholic beverages in all areas within the resort complex deemed appropriate by the Board or (b) a limited service hotel, the Board may authorize the sale and consumption of alcoholic beverages in dining areas, private guest rooms, and other designated areas to persons to whom overnight lodging is being provided, for on-premises consumption in such rooms or areas, and without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises, provided that at least one meal is provided each day by the hotel to such guests. With regard to facilities registered in accordance with Chapter 49 ( 38.2-4900 et seq.) of Title 38.2 as continuing care communities that are also licensed by the Board under this subdivision, any resident may, upon authorization of the licensee, keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas covered by the license. For purposes of this subdivision, "other designated areas" includes outdoor dining areas, whether or not contiguous to the licensed premises, which may have more than one means of ingress and egress to an adjacent public thoroughfare, provided that such outdoor dining areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201.
864	860
865	861		2. Hospitals, which shall authorize the licensee to sell wine and beer (i) in the rooms of patients for their on-premises consumption only in such rooms, provided the consent of the patient's attending physician is first obtained or (ii) in closed containers for off-premises consumption.
866	862
867	863		3. Rural grocery stores, which shall authorize the licensee to sell wine and beer for on-premises consumption or in closed containers for off-premises consumption. No license shall be granted unless (i) the grocery store is located in any town or in a rural area outside the corporate limits of any city or town and (ii) it appears affirmatively that a substantial public demand for such licensed establishment exists and that public convenience and the purposes of this subtitle will be promoted by granting the license.
868	864
869	865		4. Coliseums, stadiums, and racetracks, which shall authorize the licensee to sell wine and beer during any event and immediately subsequent thereto to patrons within all seating areas, concourses, walkways, concession areas, and additional locations designated by the Board (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. Such licenses may be granted to persons operating food concessions at coliseums, stadiums, racetracks, or similar facilities.
870	866
871	867		5. Performing arts food concessionaires, which shall authorize the licensee to sell wine and beer during the performance of any event to patrons within all seating areas, concourses, walkways, or concession areas, or other areas approved by the Board (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. Such licenses may be granted to persons operating food concessions at any performing arts facility.
872	868
873	869		6. Exhibition halls, which shall authorize the licensee to sell wine and beer during the event to patrons or attendees within all seating areas, exhibition areas, concourses, walkways, concession areas, and such additional locations designated by the Board in such facilities (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. Such licenses may be granted to persons operating food concessions at exhibition or exposition halls, convention centers, or similar facilities located in any county operating under the urban county executive form of government or any city that is completely surrounded by such county. For purposes of this subdivision, "exhibition or exposition hall" and "convention centers" mean facilities conducting private or public trade shows or exhibitions in an indoor facility having in excess of 100,000 square feet of floor space.
874	870
875	871		7. Concert and dinner-theaters, which shall authorize the licensee to sell wine and beer during events to patrons or attendees within all seating areas, exhibition areas, concourses, walkways, concession areas, dining areas, and such additional locations designated by the Board in such facilities, for on-premises consumption or in closed containers for off-premises consumption. Persons licensed pursuant to this subdivision shall serve food, prepared on or off premises, whenever wine or beer is served. Such licenses may be granted to persons operating concert or dinner-theater venues on property fronting Natural Bridge School Road in Natural Bridge Station and formerly operated as Natural Bridge High School.
876	872
877	873		8. Historic cinema houses, which shall authorize the licensee to sell wine and beer, either with or without meals, during any showing of a motion picture to patrons to whom alcoholic beverages may be lawfully sold, for on-premises consumption or in closed containers for off-premises consumption. The privileges of this license shall be limited to the premises of the historic cinema house regularly occupied and utilized as such.
878	874
879	875		9. Nonprofit museums, which shall authorize the licensee to sell wine and beer for on-premises consumption or in closed containers for off-premises consumption in areas approved by the Board. Such licenses may be granted to persons operating a nonprofit museum exempt from taxation under 501(c)(3) of the Internal Revenue Code, located in the Town of Front Royal, and dedicated to educating the consuming public about historic beer products. The privileges of this license shall be limited to the premises of the museum, regularly occupied and utilized as such.
880	876
881	877		C. The Board may grant the following off-premises wine and beer licenses:
882	878
883	879		1. Retail off-premises wine and beer licenses, which may be granted to a convenience grocery store, delicatessen, drugstore, gift shop, gourmet oyster house, gourmet shop, grocery store, or marina store as defined in 4.1-100 and Board regulations. Such license shall authorize the licensee to sell wine and beer in closed containers for off-premises consumption and, notwithstanding the provisions of 4.1-308, to give to any person to whom wine or beer may be lawfully sold a sample of wine or beer for on-premises consumption; however, no single sample shall exceed four ounces of beer or two ounces of wine and no more than 12 ounces of beer or five ounces of wine shall be served to any person per day. The licensee may also give samples of wine and beer in designated areas at events held by the licensee for the purpose of featuring and educating the consuming public about the alcoholic beverages being tasted. With the consent of the licensee, farm wineries, wineries, breweries, distillers, and wholesale licensees or authorized representatives of such licensees may participate in such tastings, including the pouring of samples. The licensee shall comply with any food inventory and sales volume requirements established by Board regulation.
884	880
885	881		2. Gourmet brewing shop licenses, which shall authorize the licensee to sell to any person to whom wine or beer may be lawfully sold, ingredients for making wine or brewing beer, including packaging, and to rent to such persons facilities for manufacturing, fermenting, and bottling such wine or beer, for off-premises consumption in accordance with subdivision 6 of 4.1-200.
886	882
887	883		3. Confectionery licenses, which shall authorize the licensee to prepare and sell on the licensed premises for off-premises consumption confectionery that contains five percent or less alcohol by volume. Any alcohol contained in such confectionery shall not be in liquid form at the time such confectionery is sold.
888	884
889	885		D. The Board may grant the following banquet, special event, and tasting licenses:
890	886
891	887		1. Per-day event licenses.
892	888
893	889		a. Banquet licenses to persons in charge of private banquets, and to duly organized nonprofit corporations or associations in charge of special events, which shall authorize the licensee to sell or give wine and beer in rooms or areas approved by the Board for the occasion for on-premises consumption in such rooms or areas. Licensees who are nonprofit corporations or associations conducting fundraisers (i) shall also be authorized to sell wine, as part of any fundraising activity, in closed containers for off-premises consumption to persons to whom wine may be lawfully sold; (ii) shall be limited to no more than one such fundraiser per year; and (iii) if conducting such fundraiser through an online meeting platform, may ship such wine, in accordance with Board regulations, in closed containers to persons located within the Commonwealth. Except as provided in 4.1-215, a separate license shall be required for each day of each banquet or special event. For the purposes of this subdivision, when the location named in the original application for a license is outdoors, the application may also name an alternative location in the event of inclement weather. However, no such license shall be required of any hotel, restaurant, or club holding a retail wine and beer license.
894	890
895	891		b. Mixed beverage special events licenses to a duly organized nonprofit corporation or association in charge of a special event, which shall authorize the licensee to sell and serve mixed beverages for on-premises consumption in areas approved by the Board on the premises of the place designated in the license. A separate license shall be required for each day of each special event.
896	892
897	893		c. Mixed beverage club events licenses to a club holding a wine and beer club license, which shall authorize the licensee to sell and serve mixed beverages for on-premises consumption by club members and their guests in areas approved by the Board on the club premises. A separate license shall be required for each day of each club event. No more than 12 such licenses shall be granted to a club in any calendar year. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
898	894
899	895		d. Tasting licenses, which shall authorize the licensee to sell or give samples of alcoholic beverages of the type specified in the license in designated areas at events held by the licensee. A tasting license shall be issued for the purpose of featuring and educating the consuming public about the alcoholic beverages being tasted. A separate license shall be required for each day of each tasting event. No tasting license shall be required for conduct authorized by 4.1-201.1.
900	896
901	897		2. Annual licenses.
902	898
903	899		a. Annual banquet licenses to duly organized private nonprofit fraternal, patriotic, or charitable membership organizations that are exempt from state and federal taxation and in charge of banquets conducted exclusively for members and their guests, which shall authorize the licensee to serve wine and beer in rooms or areas approved by the Board for the occasion for on-premises consumption in such rooms or areas. Such license shall authorize the licensee to conduct no more than 12 banquets per calendar year. For the purposes of this subdivision, when the location named in the original application for a license is outdoors, the application may also name an alternative location in the event of inclement weather. However, no such license shall be required of any hotel, restaurant, or club holding a retail wine and beer license.
904	900
905	901		b. Banquet facility licenses to volunteer fire departments and volunteer emergency medical services agencies, which shall authorize the licensee to permit the consumption of lawfully acquired alcoholic beverages on the premises of the licensee by any person, and bona fide members and guests thereof, otherwise eligible for a banquet license. However, lawfully acquired alcoholic beverages shall not be purchased or sold by the licensee or sold or charged for in any way by the person permitted to use the premises. Such premises shall be a volunteer fire or volunteer emergency medical services agency station or both, regularly occupied as such and recognized by the governing body of the county, city, or town in which it is located. Under conditions as specified by Board regulation, such premises may be other than a volunteer fire or volunteer emergency medical services agency station, provided such other premises are occupied and under the control of the volunteer fire department or volunteer emergency medical services agency while the privileges of its license are being exercised.
906	902
907	903		c. Designated outdoor refreshment area licenses to a locality, business improvement district, or nonprofit organization, which shall authorize (i) the licensee to permit the consumption of alcoholic beverages within the area designated by the Board for the designated outdoor refreshment area and (ii) any permanent retail on-premises licensee that is located within the area designated by the Board for the designated outdoor refreshment area to sell alcoholic beverages within the permanent retail location for consumption in the area designated for the designated outdoor refreshment area, including sidewalks and the premises of businesses not licensed to sell alcoholic beverages at retail, upon approval of such businesses. In determining the designated area for the designated outdoor refreshment area, the Board shall consult with the locality. Designated outdoor refreshment area licensees shall be limited to 16 events per year, and the duration of any event shall not exceed three consecutive days. However, the Board may increase the frequency and duration of events after adoption of an ordinance by a locality requesting such increase in frequency and duration. Such ordinance shall include the size and scope of the area within which such events will be held, a public safety plan, and any other considerations deemed necessary by the Board. Such limitations on the number of events that may be held shall not apply during the effective dates of any rule, regulation, or order that is issued by the Governor or State Health Commissioner to meet a public health emergency and that effectively reduces allowable restaurant seating capacity; however, designated outdoor refreshment area licensees shall be subject to all other applicable provisions of this subtitle and Board regulations and shall provide notice to the Board regarding the days and times during which the privileges of the license will be exercised. Only alcoholic beverages purchased from permanent retail on-premises licensees located within the designated area may be consumed at the event, and such alcoholic beverages shall be contained in paper, plastic, or similar disposable containers that clearly display the name or logo of the retail on-premises licensee from which the alcoholic beverage was purchased. Alcoholic beverages shall not be sold or charged for in any way by the designated outdoor refreshment area licensee. The designated outdoor refreshment area licensee shall post appropriate signage clearly demarcating for the public the boundaries of the event; however, no physical barriers shall be required for this purpose. The designated outdoor refreshment area licensee shall provide adequate security for the event to ensure compliance with the applicable provisions of this subtitle and Board regulations.
908	904
909	905		d. Annual mixed beverage banquet licenses to duly organized private nonprofit fraternal, patriotic, or charitable membership organizations that are exempt from state and federal taxation and in charge of banquets conducted exclusively for members and their guests, which shall authorize the licensee to serve mixed beverages for on-premises consumption in areas approved by the Board on the premises of the place designated in the license. Such license shall authorize the licensee to conduct no more than 12 banquets per calendar year. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
910	906
911	907		e. Equine sporting event licenses, which may be issued to organizations holding equestrian, hunt, and steeplechase events, which shall authorize the licensee to permit the consumption of lawfully acquired alcoholic beverages on the premises of the licensee by patrons thereof during such event. However, alcoholic beverages shall not be sold or charged for in any way by the licensee. The privileges of this license shall be (i) limited to the premises of the licensee, regularly occupied and utilized for equestrian, hunt, and steeplechase events, and (ii) exercised on no more than four calendar days per year.
912	908
913	909		f. Annual arts venue event licenses, to persons operating an arts venue, which shall authorize the licensee participating in a community art walk that is open to the public to serve lawfully acquired wine or beer on the premises of the licensee to adult patrons thereof during such events. However, alcoholic beverages shall not be sold or charged for in any way, directly or indirectly, by the licensee, and the licensee shall not give more than two five-ounce glasses of wine or two 12-ounce glasses of beer to any one adult patron. The privileges of this license shall be (i) limited to the premises of the arts venue regularly occupied and used as such and (ii) exercised on no more than 12 calendar days per year.
914	910
915	911		E. The Board may grant a marketplace license to persons operating a business enterprise of which the primary function is not the sale of alcoholic beverages, which shall authorize the licensee to serve complimentary wine or beer to bona fide customers on the licensed premises subject to any limitations imposed by the Board; however, the licensee shall not give more than two five-ounce glasses of wine or two 12-ounce glasses of beer to any customer per day, nor shall it sell or otherwise charge a fee to such customer for the wine or beer served or consumed. In order to be eligible for and retain a marketplace license, the applicant's business enterprise must (i) provide a single category of goods or services in a manner intended to create a personalized experience for the customer; (ii) employ staff with expertise in such goods or services; (iii) be ineligible for any other license granted by the Board; (iv) have an alcoholic beverage control manager on the licensed premises at all times alcohol is served; (v) ensure that all employees satisfy any training requirements imposed by the Board; and (vi) purchase all wine and beer to be served from a licensed wholesaler or the Authority and retain purchase records as prescribed by the Board. In determining whether to grant a marketplace license, the Board shall consider (a) the average amount of time customers spend at the business; (b) the business's hours of operation; (c) the amount of time that the business has been in operation; and (d) any other requirements deemed necessary by the Board to protect the public health, safety, and welfare.
916	912
917	913		F. The Board may grant the following shipper, bottler, and related licenses:
918	914
919	915		1. Wine and beer shipper licenses, which shall carry the privileges and limitations set forth in 4.1-209.1.
920	916
921	917		2. Internet wine and beer retailer licenses, which shall authorize persons located within or outside the Commonwealth to sell and ship wine and beer, in accordance with 4.1-209.1 and Board regulations, in closed containers to persons in the Commonwealth to whom wine and beer may be lawfully sold for off-premises consumption. Such licensee shall not be required to comply with the monthly food sale requirement established by Board regulations.
922	918
923	919		3. Bottler licenses, which shall authorize the licensee to acquire and receive deliveries and shipments of beer in closed containers and to bottle, sell, and deliver or ship it, in accordance with Board regulations to (i) wholesale beer licensees for the purpose of resale, (ii) owners of boats registered under the laws of the United States sailing for ports of call of a foreign country or another state, and (iii) persons outside the Commonwealth for resale outside the Commonwealth.
924	920
925	921		4. Fulfillment warehouse licenses, which shall authorize associations as defined in 13.1-313 with a place of business located in the Commonwealth to (i) receive deliveries and shipments of wine or beer owned by holders of wine and beer shipper's licenses; (ii) store such wine or beer on behalf of the owner; and (iii) pick, pack, and ship such wine or beer as directed by the owner, all in accordance with Board regulations. No wholesale wine or wholesale beer licensee, whether licensed in the Commonwealth or not, or any person under common control of such licensee, shall acquire or hold any financial interest, direct or indirect, in the business for which any fulfillment warehouse license is issued.
926	922
927	923		5. Marketing portal licenses, which shall authorize agricultural cooperative associations organized under the provisions of the Agricultural Cooperative Association Act ( 13.1-312 et seq.), with a place of business located in the Commonwealth, in accordance with Board regulations, to solicit and receive orders for wine or beer through the use of the Internet from persons in the Commonwealth to whom wine or beer may be lawfully sold, on behalf of holders of wine and beer shipper's licenses. Upon receipt of an order for wine or beer, the licensee shall forward it to a holder of a wine and beer shipper's license for fulfillment. Marketing portal licensees may also accept payment on behalf of the shipper.
928	924
929	925		6. Third-party delivery licenses, which shall carry the privileges and limitations set forth in 4.1-212.2.
930	926
931	927		4.1-206.3. (Effective July 1, 2026) Retail licenses.
932	928
933	929		A. The Board may grant the following mixed beverages licenses:
934	930
935	931		1. Mixed beverage restaurant licenses, which shall authorize the licensee to sell and serve mixed beverages for consumption in dining areas and other designated areas of such restaurant. Such license may be granted only to persons (i) who operate a restaurant and (ii) whose gross receipts from the sale of food cooked, or prepared, and consumed on the premises and nonalcoholic beverages served on the premises, after issuance of such license, amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food. For the purposes of this subdivision, other designated areas shall include outdoor dining areas, whether or not contiguous to the licensed premises, which outdoor dining areas may have more than one means of ingress and egress to an adjacent public thoroughfare, provided such areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201.
936	932
937	933		If the restaurant is located on the premises of a hotel or motel with no fewer than four permanent bedrooms where food and beverage service is customarily provided by the restaurant in designated areas, bedrooms, and other private rooms of such hotel or motel, such licensee may (a) sell and serve mixed beverages for consumption in such designated areas, bedrooms, and other private rooms and (b) sell spirits packaged in original closed containers purchased from the Board for on-premises consumption to registered guests and at scheduled functions of such hotel or motel only in such bedrooms or private rooms. However, with regard to a hotel classified as a resort complex, the Board may authorize the sale and on-premises consumption of alcoholic beverages in all areas within the resort complex deemed appropriate by the Board. Nothing herein shall prohibit any person from keeping and consuming his own lawfully acquired spirits in bedrooms or private rooms.
938	934
939	935		If the restaurant is located on the premises of and operated by a private, nonprofit, or profit club exclusively for its members and their guests, or members of another private, nonprofit, or profit club in another city with which it has an agreement for reciprocal dining privileges, such license shall also authorize the licensees to (1) sell and serve mixed beverages for on-premises consumption and (2) sell spirits that are packaged in original closed containers with a maximum capacity of two fluid ounces or 50 milliliters and purchased from the Board for on-premises consumption. Where such club prepares no food in its restaurant but purchases its food requirements from a restaurant licensed by the Board and located on another portion of the premises of the same hotel or motel building, this fact shall not prohibit the granting of a license by the Board to such club qualifying in all other respects. The club's gross receipts from the sale of nonalcoholic beverages consumed on the premises and food resold to its members and guests and consumed on the premises shall amount to at least 45 percent of its gross receipts from the sale of mixed beverages and food. The food sales made by a restaurant to such a club shall be excluded in any consideration of the qualifications of such restaurant for a license from the Board.
940	936
941	937		If the restaurant is located on the premises of and operated by a municipal golf course, the Board shall recognize the seasonal nature of the business and waive any applicable monthly food sales requirements for those months when weather conditions may reduce patronage of the golf course, provided that prepared food, including meals, is available to patrons during the same months. The gross receipts from the sale of food cooked, or prepared, and consumed on the premises and nonalcoholic beverages served on the premises, after the issuance of such license, shall amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food on an annualized basis.
942	938
943	939		If the restaurant is located on the premises of and operated by a culinary lodging resort, such license shall authorize the licensee to (A) sell alcoholic beverages for on-premises consumption, without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises, in areas upon the licensed premises approved by the Board and other designated areas of the resort, including outdoor areas under the control of the licensee, and (B) permit the possession and consumption of lawfully acquired alcoholic beverages by persons to whom overnight lodging is being provided in bedrooms and private guest rooms.
944	940
945	941		If the restaurant is located on the premises of a mixed beverage casino licensee owned by an operator licensed under Article Chapter 3 ( 58.1-4108 29.5-300 et seq.) of Chapter 41 of Title 58.1 29.5, such mixed beverage restaurant license shall authorize the licensee to sell alcoholic beverages for on-premises consumption on the licensed premises of the restaurant during all hours of operation of the mixed beverage casino licensee. Any alcoholic beverages purchased from such restaurant may be (I) taken onto the premises of the mixed beverage casino licensee and (II) possessed or consumed in areas designated by the Board, after consultation with the mixed beverage casino licensee. Designated areas may include any areas on the premises of the mixed beverage casino licensee, including entertainment venues, conference rooms, private rooms, hotels, pools, marinas, or green spaces. Alcoholic beverages purchased from a restaurant pursuant to this subdivision shall be contained in glassware or a paper, plastic, or similar disposable container that clearly displays the name or logo of the restaurant from which the alcoholic beverage was purchased.
946	942
947	943		The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption and in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
948	944
949	945		2. Mixed beverage caterer's licenses, which may be granted only to a person regularly engaged in the business of providing food and beverages to others for service at private gatherings or at special events, which shall authorize the licensee to sell and serve alcoholic beverages for on-premises consumption. The annual gross receipts from the sale of food cooked and prepared for service and nonalcoholic beverages served at gatherings and events referred to in this subdivision shall amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food.
950	946
951	947		3. Mixed beverage limited caterer's licenses, which may be granted only to a person regularly engaged in the business of providing food and beverages to others for service at private gatherings or at special events, not to exceed 12 gatherings or events per year, which shall authorize the licensee to sell and serve alcoholic beverages for on-premises consumption. The annual gross receipts from the sale of food cooked and prepared for service and nonalcoholic beverages served at gatherings and events referred to in this subdivision shall amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food.
952	948
953	949		4. Mixed beverage carrier licenses to (i) persons operating a common carrier of passengers by train, boat, bus, or airplane, which shall authorize the licensee to sell and serve mixed beverages anywhere in the Commonwealth to passengers while in transit aboard any such common carrier, and in designated rooms of establishments of air carriers at airports in the Commonwealth and (ii) financial institutions, subsidiaries of a financial institution, or persons approved by the applicable airport authority that have entered into a contract with a financial institution or subsidiary of a financial institution to operate a passenger lounge, which shall authorize the licensee to sell and serve mixed beverages in designated areas of a passenger lounge for ticketed air carrier passengers that is located within an airport in the Commonwealth. For purposes of supplying its airplanes, as well as any airplanes of a licensed express carrier flying under the same brand, an air carrier licensee may appoint an authorized representative to load alcoholic beverages onto the same airplanes and to transport and store alcoholic beverages at or in close proximity to the airport where the alcoholic beverages will be delivered onto airplanes of the air carrier and any such licensed express carrier. The air carrier licensee shall (a) designate for purposes of its license all locations where the inventory of alcoholic beverages may be stored and from which the alcoholic beverages will be delivered onto airplanes of the air carrier and any such licensed express carrier and (b) maintain records of all alcoholic beverages to be transported, stored, and delivered by its authorized representative. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
954	950
955	951		For the purposes of this subdivision:
956	952
957	953		"Financial institution" means any bank, trust company, savings institution, industrial loan association, consumer finance company, or credit union.
958	954
959	955		"Passenger lounge" means any restricted-access passenger waiting room or lounge leased to persons by the applicable airport authority in which food and beverage services are provided to ticketed passengers.
960	956
961	957		5. Annual mixed beverage sports facility licenses to persons operating a sports facility or food concessions at a sports facility, which shall authorize the licensee to sell mixed beverages during any event and immediately subsequent thereto to patrons within all seating areas, concourses, walkways, concession areas, and additional locations designated by the Board (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
962	958
963	959		6. Limited mixed beverage restaurant licenses, which shall authorize the licensee to sell and serve dessert wines as defined by Board regulation and no more than six varieties of liqueurs, which liqueurs shall be combined with coffee or other nonalcoholic beverages, for consumption in dining areas of the restaurant. Such license may be granted only to persons who operate a restaurant and in no event shall the sale of such wine or liqueur-based drinks, together with the sale of any other alcoholic beverages, exceed 10 percent of the total annual gross sales of all food and alcoholic beverages. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
964	960
965	961		7. Annual mixed beverage performing arts facility licenses, which shall (i) authorize the licensee to sell, on the dates of performances or events, alcoholic beverages in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption in all seating areas, concourses, walkways, concession areas, similar facilities, and other areas upon the licensed premises approved by the Board and (ii) automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1. Such licenses may be granted to persons operating a performing arts facility or food concessions at a performing arts facility.
966	962
967	963		8. Combined mixed beverage restaurant and caterer's licenses, which may be granted to any restaurant or hotel that meets the qualifications for both a mixed beverage restaurant pursuant to subdivision 1 and mixed beverage caterer pursuant to subdivision 2 for the same business location, and which license shall authorize the licensee to operate as both a mixed beverage restaurant and mixed beverage caterer at the same business premises designated in the license, with a common alcoholic beverage inventory for purposes of the restaurant and catering operations. Such licensee shall meet the separate food qualifications established for the mixed beverage restaurant license pursuant to subdivision 1 and mixed beverage caterer's license pursuant to subdivision 2. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
968	964
969	965		9. Bed and breakfast licenses, which shall authorize the licensee to (i) serve alcoholic beverages in dining areas, private guest rooms, and other designated areas to persons to whom overnight lodging is being provided, with or without meals, for on-premises consumption only in such rooms and areas, and without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises and (ii) permit the consumption of lawfully acquired alcoholic beverages by persons to whom overnight lodging is being provided in (a) bedrooms or private guest rooms or (b) other designated areas of the bed and breakfast establishment. For purposes of this subdivision, "other designated areas" includes outdoor dining areas, whether or not contiguous to the licensed premises, which may have more than one means of ingress and egress to an adjacent public thoroughfare, provided that such outdoor dining areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201.
970	966
971	967		10. Museum licenses, which may be issued to nonprofit museums exempt from taxation under 501(c)(3) of the Internal Revenue Code, which shall authorize the licensee to (i) permit the consumption of lawfully acquired alcoholic beverages on the premises of the licensee by any bona fide member and guests thereof and (ii) serve alcoholic beverages on the premises of the licensee to any bona fide member and guests thereof. However, alcoholic beverages shall not be sold or charged for in any way by the licensee. The privileges of this license shall be limited to the premises of the museum, regularly occupied and utilized as such.
972	968
973	969		11. Commercial lifestyle center licenses, which may be issued only to a commercial owners' association governing a commercial lifestyle center, which shall authorize any retail on-premises restaurant licensee that is a tenant of the commercial lifestyle center to sell alcoholic beverages to any bona fide customer to whom alcoholic beverages may be lawfully sold for consumption on that portion of the licensed premises of the commercial lifestyle center designated by the Board, including (i) plazas, seating areas, concourses, walkways, or such other similar areas and (ii) the premises of any tenant location of the commercial lifestyle center that is not a retail licensee of the Board, upon approval of such tenant, but excluding any parking areas. Only alcoholic beverages purchased from such retail on-premises restaurant licensees may be consumed on the licensed premises of the commercial lifestyle center, and such alcoholic beverages shall be contained in paper, plastic, or similar disposable containers with the name or logo of the restaurant licensee that sold the alcoholic beverage clearly displayed. Alcoholic beverages shall not be sold or charged for in any way by the commercial lifestyle center licensee. The licensee shall post appropriate signage clearly demarcating for the public the boundaries of the licensed premises; however, no physical barriers shall be required for this purpose. The licensee shall provide adequate security for the licensed premises to ensure compliance with the applicable provisions of this subtitle and Board regulations.
974	970
975	971		12. Mixed beverage port restaurant licenses, which shall authorize the licensee to sell and serve mixed beverages for consumption in dining areas and other designated areas of such restaurant. Such license may be granted only to persons operating a business (i) that is primarily engaged in the sale of meals; (ii) that is located on property owned by the United States government or an agency thereof and used as a port of entry to or egress from the United States; and (iii) whose gross receipts from the sale of food cooked, or prepared, and consumed on the premises and nonalcoholic beverages served on the premises, after issuance of such license, amount to at least 45 percent of the gross receipts from the sale of mixed beverages and food. For the purposes of this subdivision, other designated areas shall include outdoor dining areas, whether or not contiguous to the licensed premises, which outdoor dining areas may have more than one means of ingress and egress to an adjacent public thoroughfare, provided such areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption or in closed containers for off-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
976	972
977	973		13. Annual mixed beverage special events licenses to (i) a duly organized nonprofit corporation or association operating either a performing arts facility or an art education and exhibition facility; (ii) a nonprofit corporation or association chartered by Congress for the preservation of sites, buildings, and objects significant in American history and culture; (iii) persons operating an agricultural event and entertainment park or similar facility that has a minimum of 50,000 square feet of indoor exhibit space and equine and other livestock show areas, which includes barns, pavilions, or other structures equipped with roofs, exterior walls, and open-door or closed-door access; or (iv) a locality for special events conducted on the premises of a museum for historic interpretation that is owned and operated by the locality. The operation in all cases shall be upon premises owned by such licensee or occupied under a bona fide lease, the original term of which was for more than one year's duration. Such license shall authorize the licensee to sell alcoholic beverages during scheduled events and performances for on-premises consumption in areas upon the licensed premises approved by the Board.
978	974
979	975		14. Mixed beverage casino licenses, which shall authorize the licensee to (i) sell and serve mixed beverages for on-premises consumption in areas designated by the Board, after consultation with the mixed beverage casino licensee, without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises and (ii) provide complimentary mixed beverages to patrons for on-premises consumption in private areas or restricted access areas designated by the Board, after consultation with the mixed beverage casino licensee. Designated areas may include any areas on the premises of the mixed beverage casino licensee, including entertainment venues, private rooms, conference rooms, hotels, pools, marinas, or green spaces. The granting of a license pursuant to this subdivision shall authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption and in closed containers for off-premises consumption in accordance with the provisions of this subdivision governing mixed beverages; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1. Notwithstanding any law or regulation to the contrary, a mixed beverage casino licensee may exercise the privileges of its license as set forth in this subdivision during all hours of operation of the casino gaming establishment; however, such licensee shall not sell wine or beer for off-premises consumption between the hours of 12 a.m. and 6 a.m.
980	976
981	977		A mixed beverage casino licensee may (a) provide patrons gifts of alcoholic beverages in closed containers for personal consumption off the licensed premises or in areas designated by the Board, after consultation with the mixed beverage casino licensee, and (b) enable patrons who participate in a loyalty or reward credit program to redeem credits for the purchase of alcoholic beverages for on-premises consumption. A summary of the operation of such loyalty or reward credit program shall be provided to the Board upon request.
982	978
983	979		A mixed beverage casino license may only be issued to a casino gaming establishment owned by an operator licensed under Article Chapter 3 ( 58.1-4108 29.5-300 et seq.) of Chapter 41 of Title 58.1 29.5.
984	980
985	981		B. The Board may grant an on-and-off-premises wine and beer license to the following:
986	982
987	983		1. Hotels, restaurants, and clubs, which shall authorize the licensee to sell wine and beer (i) in closed containers for off-premises consumption or (ii) for on-premises consumption, either with or without meals, in dining areas and other designated areas of such restaurants, or in dining areas, private guest rooms, and other designated areas of such hotels or clubs, for consumption only in such rooms and areas. However, with regard to a hotel classified by the Board as (a) a resort complex, the Board may authorize the sale and consumption of alcoholic beverages in all areas within the resort complex deemed appropriate by the Board or (b) a limited service hotel, the Board may authorize the sale and consumption of alcoholic beverages in dining areas, private guest rooms, and other designated areas to persons to whom overnight lodging is being provided, for on-premises consumption in such rooms or areas, and without regard to the amount of gross receipts from the sale of food prepared and consumed on the premises, provided that at least one meal is provided each day by the hotel to such guests. With regard to facilities registered in accordance with Chapter 49 ( 38.2-4900 et seq.) of Title 38.2 as continuing care communities that are also licensed by the Board under this subdivision, any resident may, upon authorization of the licensee, keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas covered by the license. For purposes of this subdivision, "other designated areas" includes outdoor dining areas, whether or not contiguous to the licensed premises, which may have more than one means of ingress and egress to an adjacent public thoroughfare, provided that such outdoor dining areas are under the control of the licensee and approved by the Board. Such noncontiguous designated areas shall not be approved for any retail license issued pursuant to subdivision A 5 of 4.1-201.
988	984
989	985		2. Hospitals, which shall authorize the licensee to sell wine and beer (i) in the rooms of patients for their on-premises consumption only in such rooms, provided the consent of the patient's attending physician is first obtained or (ii) in closed containers for off-premises consumption.
990	986
991	987		3. Rural grocery stores, which shall authorize the licensee to sell wine and beer for on-premises consumption or in closed containers for off-premises consumption. No license shall be granted unless (i) the grocery store is located in any town or in a rural area outside the corporate limits of any city or town and (ii) it appears affirmatively that a substantial public demand for such licensed establishment exists and that public convenience and the purposes of this subtitle will be promoted by granting the license.
992	988
993	989		4. Coliseums, stadiums, and racetracks, which shall authorize the licensee to sell wine and beer during any event and immediately subsequent thereto to patrons within all seating areas, concourses, walkways, concession areas, and additional locations designated by the Board (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. Such licenses may be granted to persons operating food concessions at coliseums, stadiums, racetracks, or similar facilities.
994	990
995	991		5. Performing arts food concessionaires, which shall authorize the licensee to sell wine and beer during the performance of any event to patrons within all seating areas, concourses, walkways, or concession areas, or other areas approved by the Board (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. Such licenses may be granted to persons operating food concessions at any performing arts facility.
996	992
997	993		6. Exhibition halls, which shall authorize the licensee to sell wine and beer during the event to patrons or attendees within all seating areas, exhibition areas, concourses, walkways, concession areas, and such additional locations designated by the Board in such facilities (i) in closed containers for off-premises consumption or (ii) in paper, plastic, or similar disposable containers or in single original metal cans for on-premises consumption. Upon authorization of the licensee, any person may keep and consume his own lawfully acquired alcoholic beverages on the premises in all areas and locations covered by the license. Such licenses may be granted to persons operating food concessions at exhibition or exposition halls, convention centers, or similar facilities located in any county operating under the urban county executive form of government or any city that is completely surrounded by such county. For purposes of this subdivision, "exhibition or exposition hall" and "convention centers" mean facilities conducting private or public trade shows or exhibitions in an indoor facility having in excess of 100,000 square feet of floor space.
998	994
999	995		7. Concert and dinner-theaters, which shall authorize the licensee to sell wine and beer during events to patrons or attendees within all seating areas, exhibition areas, concourses, walkways, concession areas, dining areas, and such additional locations designated by the Board in such facilities, for on-premises consumption or in closed containers for off-premises consumption. Persons licensed pursuant to this subdivision shall serve food, prepared on or off premises, whenever wine or beer is served. Such licenses may be granted to persons operating concert or dinner-theater venues on property fronting Natural Bridge School Road in Natural Bridge Station and formerly operated as Natural Bridge High School.
1000	996
1001	997		8. Historic cinema houses, which shall authorize the licensee to sell wine and beer, either with or without meals, during any showing of a motion picture to patrons to whom alcoholic beverages may be lawfully sold, for on-premises consumption or in closed containers for off-premises consumption. The privileges of this license shall be limited to the premises of the historic cinema house regularly occupied and utilized as such.
1002	998
1003	999		9. Nonprofit museums, which shall authorize the licensee to sell wine and beer for on-premises consumption or in closed containers for off-premises consumption in areas approved by the Board. Such licenses may be granted to persons operating a nonprofit museum exempt from taxation under 501(c)(3) of the Internal Revenue Code, located in the Town of Front Royal, and dedicated to educating the consuming public about historic beer products. The privileges of this license shall be limited to the premises of the museum, regularly occupied and utilized as such.
1004	1000
1005	1001		C. The Board may grant the following off-premises wine and beer licenses:
1006	1002
1007	1003		1. Retail off-premises wine and beer licenses, which may be granted to a convenience grocery store, delicatessen, drugstore, gift shop, gourmet oyster house, gourmet shop, grocery store, or marina store as defined in 4.1-100 and Board regulations. Such license shall authorize the licensee to sell wine and beer in closed containers for off-premises consumption and, notwithstanding the provisions of 4.1-308, to give to any person to whom wine or beer may be lawfully sold a sample of wine or beer for on-premises consumption; however, no single sample shall exceed four ounces of beer or two ounces of wine and no more than 12 ounces of beer or five ounces of wine shall be served to any person per day. The licensee may also give samples of wine and beer in designated areas at events held by the licensee for the purpose of featuring and educating the consuming public about the alcoholic beverages being tasted. With the consent of the licensee, farm wineries, wineries, breweries, distillers, and wholesale licensees or authorized representatives of such licensees may participate in such tastings, including the pouring of samples. The licensee shall comply with any food inventory and sales volume requirements established by Board regulation.
1008	1004
1009	1005		2. Gourmet brewing shop licenses, which shall authorize the licensee to sell to any person to whom wine or beer may be lawfully sold, ingredients for making wine or brewing beer, including packaging, and to rent to such persons facilities for manufacturing, fermenting, and bottling such wine or beer, for off-premises consumption in accordance with subdivision 6 of 4.1-200.
1010	1006
1011	1007		3. Confectionery licenses, which shall authorize the licensee to prepare and sell on the licensed premises for off-premises consumption confectionery that contains five percent or less alcohol by volume. Any alcohol contained in such confectionery shall not be in liquid form at the time such confectionery is sold.
1012	1008
1013	1009		D. The Board may grant the following banquet, special event, and tasting licenses:
1014	1010
1015	1011		1. Per-day event licenses.
1016	1012
1017	1013		a. Banquet licenses to persons in charge of private banquets, and to duly organized nonprofit corporations or associations in charge of special events, which shall authorize the licensee to sell or give wine and beer in rooms or areas approved by the Board for the occasion for on-premises consumption in such rooms or areas. Licensees who are nonprofit corporations or associations conducting fundraisers (i) shall also be authorized to sell wine, as part of any fundraising activity, in closed containers for off-premises consumption to persons to whom wine may be lawfully sold; (ii) shall be limited to no more than one such fundraiser per year; and (iii) if conducting such fundraiser through an online meeting platform, may ship such wine, in accordance with Board regulations, in closed containers to persons located within the Commonwealth. Except as provided in 4.1-215, a separate license shall be required for each day of each banquet or special event. For the purposes of this subdivision, when the location named in the original application for a license is outdoors, the application may also name an alternative location in the event of inclement weather. However, no such license shall be required of any hotel, restaurant, or club holding a retail wine and beer license.
1018	1014
1019	1015		b. Mixed beverage special events licenses to a duly organized nonprofit corporation or association in charge of a special event, which shall authorize the licensee to sell and serve mixed beverages for on-premises consumption in areas approved by the Board on the premises of the place designated in the license. A separate license shall be required for each day of each special event.
1020	1016
1021	1017		c. Mixed beverage club events licenses to a club holding a wine and beer club license, which shall authorize the licensee to sell and serve mixed beverages for on-premises consumption by club members and their guests in areas approved by the Board on the club premises. A separate license shall be required for each day of each club event. No more than 12 such licenses shall be granted to a club in any calendar year. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
1022	1018
1023	1019		d. Tasting licenses, which shall authorize the licensee to sell or give samples of alcoholic beverages of the type specified in the license in designated areas at events held by the licensee. A tasting license shall be issued for the purpose of featuring and educating the consuming public about the alcoholic beverages being tasted. A separate license shall be required for each day of each tasting event. No tasting license shall be required for conduct authorized by 4.1-201.1.
1024	1020
1025	1021		2. Annual licenses.
1026	1022
1027	1023		a. Annual banquet licenses to duly organized private nonprofit fraternal, patriotic, or charitable membership organizations that are exempt from state and federal taxation and in charge of banquets conducted exclusively for members and their guests, which shall authorize the licensee to serve wine and beer in rooms or areas approved by the Board for the occasion for on-premises consumption in such rooms or areas. Such license shall authorize the licensee to conduct no more than 12 banquets per calendar year. For the purposes of this subdivision, when the location named in the original application for a license is outdoors, the application may also name an alternative location in the event of inclement weather. However, no such license shall be required of any hotel, restaurant, or club holding a retail wine and beer license.
1028	1024
1029	1025		b. Banquet facility licenses to volunteer fire departments and volunteer emergency medical services agencies, which shall authorize the licensee to permit the consumption of lawfully acquired alcoholic beverages on the premises of the licensee by any person, and bona fide members and guests thereof, otherwise eligible for a banquet license. However, lawfully acquired alcoholic beverages shall not be purchased or sold by the licensee or sold or charged for in any way by the person permitted to use the premises. Such premises shall be a volunteer fire or volunteer emergency medical services agency station or both, regularly occupied as such and recognized by the governing body of the county, city, or town in which it is located. Under conditions as specified by Board regulation, such premises may be other than a volunteer fire or volunteer emergency medical services agency station, provided such other premises are occupied and under the control of the volunteer fire department or volunteer emergency medical services agency while the privileges of its license are being exercised.
1030	1026
1031	1027		c. Designated outdoor refreshment area licenses to a locality, business improvement district, or nonprofit organization, which shall authorize (i) the licensee to permit the consumption of alcoholic beverages within the area designated by the Board for the designated outdoor refreshment area and (ii) any permanent retail on-premises licensee that is located within the area designated by the Board for the designated outdoor refreshment area to sell alcoholic beverages within the permanent retail location for consumption in the area designated for the designated outdoor refreshment area, including sidewalks and the premises of businesses not licensed to sell alcoholic beverages at retail, upon approval of such businesses. In determining the designated area for the designated outdoor refreshment area, the Board shall consult with the locality. Designated outdoor refreshment area licensees shall be limited to 16 events per year, and the duration of any event shall not exceed three consecutive days. However, the Board may increase the frequency and duration of events after adoption of an ordinance by a locality requesting such increase in frequency and duration. Such ordinance shall include the size and scope of the area within which such events will be held, a public safety plan, and any other considerations deemed necessary by the Board. Such limitations on the number of events that may be held shall not apply during the effective dates of any rule, regulation, or order that is issued by the Governor or State Health Commissioner to meet a public health emergency and that effectively reduces allowable restaurant seating capacity; however, designated outdoor refreshment area licensees shall be subject to all other applicable provisions of this subtitle and Board regulations and shall provide notice to the Board regarding the days and times during which the privileges of the license will be exercised. Only alcoholic beverages purchased from permanent retail on-premises licensees located within the designated area may be consumed at the event, and such alcoholic beverages shall be contained in paper, plastic, or similar disposable containers that clearly display the name or logo of the retail on-premises licensee from which the alcoholic beverage was purchased. Alcoholic beverages shall not be sold or charged for in any way by the designated outdoor refreshment area licensee. The designated outdoor refreshment area licensee shall post appropriate signage clearly demarcating for the public the boundaries of the event; however, no physical barriers shall be required for this purpose. The designated outdoor refreshment area licensee shall provide adequate security for the event to ensure compliance with the applicable provisions of this subtitle and Board regulations.
1032	1028
1033	1029		d. Annual mixed beverage banquet licenses to duly organized private nonprofit fraternal, patriotic, or charitable membership organizations that are exempt from state and federal taxation and in charge of banquets conducted exclusively for members and their guests, which shall authorize the licensee to serve mixed beverages for on-premises consumption in areas approved by the Board on the premises of the place designated in the license. Such license shall authorize the licensee to conduct no more than 12 banquets per calendar year. The granting of a license pursuant to this subdivision shall automatically authorize the licensee to obtain a license to sell and serve wine and beer for on-premises consumption; however, the licensee shall be required to pay the local fee required for such additional license pursuant to 4.1-233.1.
1034	1030
1035	1031		e. Equine sporting event licenses, which may be issued to organizations holding equestrian, hunt, and steeplechase events, which shall authorize the licensee to permit the consumption of lawfully acquired alcoholic beverages on the premises of the licensee by patrons thereof during such event. However, alcoholic beverages shall not be sold or charged for in any way by the licensee. The privileges of this license shall be (i) limited to the premises of the licensee, regularly occupied and utilized for equestrian, hunt, and steeplechase events, and (ii) exercised on no more than four calendar days per year.
1036	1032
1037	1033		f. Annual arts venue event licenses, to persons operating an arts venue, which shall authorize the licensee participating in a community art walk that is open to the public to serve lawfully acquired wine or beer on the premises of the licensee to adult patrons thereof during such events. However, alcoholic beverages shall not be sold or charged for in any way, directly or indirectly, by the licensee, and the licensee shall not give more than two five-ounce glasses of wine or two 12-ounce glasses of beer to any one adult patron. The privileges of this license shall be (i) limited to the premises of the arts venue regularly occupied and used as such and (ii) exercised on no more than 12 calendar days per year.
1038	1034
1039	1035		E. The Board may grant a marketplace license to persons operating a business enterprise of which the primary function is not the sale of alcoholic beverages, which shall authorize the licensee to serve complimentary wine or beer to bona fide customers on the licensed premises subject to any limitations imposed by the Board; however, the licensee shall not give more than two five-ounce glasses of wine or two 12-ounce glasses of beer to any customer per day, nor shall it sell or otherwise charge a fee to such customer for the wine or beer served or consumed. In order to be eligible for and retain a marketplace license, the applicant's business enterprise must (i) provide a single category of goods or services in a manner intended to create a personalized experience for the customer; (ii) employ staff with expertise in such goods or services; (iii) be ineligible for any other license granted by the Board; (iv) have an alcoholic beverage control manager on the licensed premises at all times alcohol is served; (v) ensure that all employees satisfy any training requirements imposed by the Board; and (vi) purchase all wine and beer to be served from a licensed wholesaler or the Authority and retain purchase records as prescribed by the Board. In determining whether to grant a marketplace license, the Board shall consider (a) the average amount of time customers spend at the business; (b) the business's hours of operation; (c) the amount of time that the business has been in operation; and (d) any other requirements deemed necessary by the Board to protect the public health, safety, and welfare.
1040	1036
1041	1037		F. The Board may grant the following shipper, bottler, and related licenses:
1042	1038
1043	1039		1. Wine and beer shipper licenses, which shall carry the privileges and limitations set forth in 4.1-209.1.
1044	1040
1045	1041		2. Internet wine and beer retailer licenses, which shall authorize persons located within or outside the Commonwealth to sell and ship wine and beer, in accordance with 4.1-209.1 and Board regulations, in closed containers to persons in the Commonwealth to whom wine and beer may be lawfully sold for off-premises consumption. Such licensee shall not be required to comply with the monthly food sale requirement established by Board regulations.
1046	1042
1047	1043		3. Bottler licenses, which shall authorize the licensee to acquire and receive deliveries and shipments of beer in closed containers and to bottle, sell, and deliver or ship it, in accordance with Board regulations to (i) wholesale beer licensees for the purpose of resale, (ii) owners of boats registered under the laws of the United States sailing for ports of call of a foreign country or another state, and (iii) persons outside the Commonwealth for resale outside the Commonwealth.
1048	1044
1049	1045		4. Fulfillment warehouse licenses, which shall authorize associations as defined in 13.1-313 with a place of business located in the Commonwealth to (i) receive deliveries and shipments of wine or beer owned by holders of wine and beer shipper's licenses; (ii) store such wine or beer on behalf of the owner; and (iii) pick, pack, and ship such wine or beer as directed by the owner, all in accordance with Board regulations. No wholesale wine or wholesale beer licensee, whether licensed in the Commonwealth or not, or any person under common control of such licensee, shall acquire or hold any financial interest, direct or indirect, in the business for which any fulfillment warehouse license is issued.
1050	1046
1051	1047		5. Marketing portal licenses, which shall authorize agricultural cooperative associations organized under the provisions of the Agricultural Cooperative Association Act ( 13.1-312 et seq.), with a place of business located in the Commonwealth, in accordance with Board regulations, to solicit and receive orders for wine or beer through the use of the Internet from persons in the Commonwealth to whom wine or beer may be lawfully sold, on behalf of holders of wine and beer shipper's licenses. Upon receipt of an order for wine or beer, the licensee shall forward it to a holder of a wine and beer shipper's license for fulfillment. Marketing portal licensees may also accept payment on behalf of the shipper.
1052	1048
1053	1049		8.01-216.3. False claims; civil penalty.
1054	1050
1055	1051		A. Any person who:
1056	1052
1057	1053		1. Knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;
1058	1054
1059	1055		2. Knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim;
1060	1056
1061	1057		3. Conspires to commit a violation of subdivision 1, 2, 4, 5, 6, 7, 8, or 9;
1062	1058
1063	1059		4. Has possession, custody, or control of property or money used, or to be used, by the Commonwealth and knowingly delivers, or causes to be delivered, less than all such money or property;
1064	1060
1065	1061		5. Has possession, custody, or control of an illegal gambling device, as defined in 18.2-325, knowing such device is illegal, and knowingly conceals, avoids, or decreases an obligation to pay or transmit money to the Commonwealth that is derived from the operation of such device;
1066	1062
1067	1063		6. Manufactures for sale, sells, or distributes an illegal gaming device knowing that such device is or is intended to be operated in the Commonwealth in violation of Article 1 ( 18.2-325 et seq.) or Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 2 ( 29.5-200 et seq.) of Title 18.2 29.5;
1068	1064
1069	1065		7. Is authorized to make or deliver a document certifying receipt of property used, or to be used, by the Commonwealth and, intending to defraud the Commonwealth, makes or delivers the receipt without completely knowing that the information on the receipt is true;
1070	1066
1071	1067		8. Knowingly buys or receives as a pledge of an obligation or debt, public property from an officer or employee of the Commonwealth who lawfully may not sell or pledge the property; or
1072	1068
1073	1069		9. Knowingly makes, uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the Commonwealth or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the Commonwealth;
1074	1070
1075	1071		shall be liable to the Commonwealth for a civil penalty of not less than $10,957 and not more than $21,916, except that these lower and upper limits on liability shall automatically be adjusted to equal the amounts allowed under the Federal False Claims Act, 31 U.S.C. 3729 et seq., as amended, as such penalties in the Federal False Claims Act are adjusted for inflation by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended (28 U.S.C. 2461 Note, P.L. 101-410), plus three times the amount of damages sustained by the Commonwealth.
1076	1072
1077	1073		A person violating this section shall be liable to the Commonwealth for reasonable attorney fees and costs of a civil action brought to recover any such penalties or damages. All such fees and costs shall be paid to the Attorney General's Office by the defendant and shall not be included in any damages or civil penalties recovered in a civil action based on a violation of this section.
1078	1074
1079	1075		B. If the court finds that (i) the person committing the violation of this section furnished officials of the Commonwealth responsible for investigating false claims violations with all information known to the person about the violation within 30 days after the date on which the defendant first obtained the information; (ii) such person fully cooperated with any Commonwealth investigation of such violation; (iii) at the time such person furnished the Commonwealth with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced with respect to such violation; and (iv) the person did not have actual knowledge of the existence of an investigation into such violation, the court may assess not less than two times the amount of damages that the Commonwealth sustains because of the act of that person. A person violating this section shall also be liable to the Commonwealth for the costs of a civil action brought to recover any such penalty or damages.
1080	1076
1081	1077		C. For purposes of this section, the terms "knowing" and "knowingly" mean that a person, with respect to information, (i) has actual knowledge of the information; (ii) acts in deliberate ignorance of the truth or falsity of the information; or (iii) acts in reckless disregard of the truth or falsity of the information and require no proof of specific intent to defraud.
1082	1078
1083	1079		D. Except as provided in subdivision A 5, this section shall not apply to claims, records, or statements relating to state or local taxes.
1084	1080
1085	1081		8.01-534. Grounds of action for pretrial levy or seizure of attachment.
1086	1082
1087	1083		A. It shall be sufficient ground for an action for pretrial levy or seizure or an attachment that the principal defendant or one of the principal defendants:
1088	1084
1089	1085		1. Is a foreign corporation, or is not a resident of this Commonwealth, and has estate or has debts owing to such defendant within the county or city in which the attachment is, or that such defendant being a nonresident of this Commonwealth, is entitled to the benefit of any lien, legal or equitable, on property, real or personal, within the county or city in which the attachment is. The word "estate," as herein used, includes all rights or interests of a pecuniary nature which can be protected, enforced, or proceeded against in courts of law or equity;
1090	1086
1091	1087		2. Is removing or is about to remove himself out of this Commonwealth with intent to change his domicile;
1092	1088
1093	1089		3. Intends to remove, or is removing, or has removed the specific property sued for, or his own estate, or the proceeds of the sale of his property, or a material part of such estate or proceeds, out of this Commonwealth so that there will probably not be therein effects of such debtor sufficient to satisfy the claim when judgment is obtained therefor should only the ordinary process of law be used to obtain the judgment;
1094	1090
1095	1091		4. Is converting, is about to convert or has converted his property of whatever kind, or some part thereof, into money, securities or evidences of debt with intent to hinder, delay, or defraud his creditors;
1096	1092
1097	1093		5. Has assigned or disposed of or is about to assign or dispose of his estate, or some part thereof, with intent to hinder, delay or defraud his creditors;
1098	1094
1099	1095		6. Has absconded or is about to abscond or has concealed or is about to conceal himself or his property to the injury of his creditors, or is a fugitive from justice;
1100	1096
1101	1097		7. Has conducted, financed, managed, supervised, directed, sold, or owned a gambling device that is located in an unregulated location pursuant to 18.2-331.1;
1102	1098
1103	1099		8. Has violated any provision of law related to charitable gaming pursuant to Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 2 ( 29.5-200 et seq.) of Title 18.2 29.5.
1104	1100
1105	1101		The intent mentioned in subdivisions 4 and 5 may be stated either in the alternative or conjunctive.
1106	1102
1107	1103		B. It shall be sufficient ground for an action for pretrial levy or seizure or an attachment if the specific personal property sought to be levied or seized:
1108	1104
1109	1105		1. Will be sold, removed, secreted, or otherwise disposed of by the defendant, in violation of an obligation to the plaintiff, so as not to be forthcoming to answer the final judgment of the court respecting the same; or
1110	1106
1111	1107		2. Will be destroyed, or materially damaged or injured if permitted to remain in the possession of the principal defendant or one of the principal defendants or other person or persons claiming under them.
1112	1108
1113	1109		C. In an action for rent, it also shall be a sufficient ground if there is an immediate danger that the property subject to the landlord's lien for rent will be destroyed or concealed.
1114	1110
1115	1111		11-16.1. Exemption from the chapter.
1116	1112
1117	1113		This chapter shall not apply to any bet, wager, or casino gaming permitted by Chapter 41 3 ( 58.1-4100 29.5-300 et seq.) of Title 58.1 29.5 or to any contract, conduct, or transaction arising from conduct lawful thereunder.
1118	1114
1119	1115		11-16.2. Exemption; authorized sports betting.
1120	1116
1121	1117		This chapter shall not apply to any sports betting or related activity that is lawful under Article 2 ( 58.1-4030 et seq.) of Chapter 40 4 ( 29.5-400 et seq.) of Title 58.1 29.5.
1122	1118
1123	1119		15.2-912.2. Proceeds exempt from local taxation.
1124	1120
1125	1121		No locality may impose a gross receipts, entertainment, admission, or any other tax based on revenues of qualified organizations derived from the conduct of charitable gaming.
1126	1122
1127	1123		The definitions set forth in 18.2-340.16 29.5-200 shall apply to this section.
1128	1124
1129	1125		15.2-2825. Smoking in restaurants prohibited; exceptions; posting of signs; penalty for violation.
1130	1126
1131	1127		A. Effective December 1, 2009, smoking shall be prohibited and no person shall smoke in any restaurant in the Commonwealth or in any restroom within such restaurant, except that smoking may be permitted in:
1132	1128
1133	1129		1. Any place or operation that prepares or stores food for distribution to persons of the same business operation or of a related business operation for service to the public. Examples of such places or operations include the preparation or storage of food for catering services, pushcart operations, hotdog stands, and other mobile points of service;
1134	1130
1135	1131		2. Any outdoor area of a restaurant, with or without roof covering, at such times when such outdoor area is not enclosed in whole or in part by any screened walls, roll-up doors, windows or other seasonal or temporary enclosures;
1136	1132
1137	1133		3. Any restaurants located on the premises of any manufacturer of tobacco products;
1138	1134
1139	1135		4. Any portion of a restaurant that is used exclusively for private functions, provided such functions are limited to those portions of the restaurant that meet the requirements of subdivision 5;
1140	1136
1141	1137		5. Any portion of a restaurant that is constructed in such a manner that the area where smoking may be permitted is (i) structurally separated from the portion of the restaurant in which smoking is prohibited and to which ingress and egress is through a door and (ii) separately vented to prevent the recirculation of air from such area to the area of the restaurant where smoking is prohibited. At least one public entrance to the restaurant shall be into an area of the restaurant where smoking is prohibited. For the purposes of the preceding sentence, nothing shall be construed to require the creation of an additional public entrance in cases where the only public entrance to a restaurant in existence as of December 1, 2009, is through an outdoor area described in subdivision 2;
1142	1138
1143	1139		6. Any private club; and
1144	1140
1145	1141		7. Any portion of a facility licensed to conduct casino gaming pursuant to Chapter 41 3 ( 58.1-4100 29.5-300 et seq.) of Title 58.1 29.5 designated pursuant to the provisions of and that meets the requirements of 15.2-2827. Any restaurant within a facility licensed to conduct casino gaming shall comply with the provisions of this section.
1146	1142
1147	1143		B. For the purposes of this section:
1148	1144
1149	1145		"Proprietor" means the owner, lessee, or other person who ultimately controls the activities within the restaurant. The term "proprietor" includes corporations, associations, or partnerships as well as individuals.
1150	1146
1151	1147		"Structurally separated" means a stud wall covered with drywall or other building material or other like barrier, which, when completed, extends from the floor to the ceiling, resulting in a physically separated room. Such wall or barrier may include portions that are glass or other gas-impervious building material.
1152	1148
1153	1149		C. No individual who is wait staff or bus staff in a restaurant shall be required by the proprietor to work in any area of the restaurant where smoking may be permitted without the consent of such individual. Nothing in this subsection shall be interpreted to create a cause of action against such proprietor.
1154	1150
1155	1151		D. The proprietor of any restaurant shall:
1156	1152
1157	1153		1. Post signs stating "No Smoking" or containing the international "No Smoking" symbol, consisting of a pictorial representation of a burning cigarette enclosed in a red circle with a bar across it, clearly and conspicuously in every restaurant where smoking is prohibited in accordance with this section; and
1158	1154
1159	1155		2. Remove all ashtrays and other smoking paraphernalia from any area in the restaurant where smoking is prohibited in accordance with this section.
1160	1156
1161	1157		E. Any proprietor of a restaurant who fails to comply with the requirements of this section shall be subject to the civil penalty of not more than $25.
1162	1158
1163	1159		F. No person shall smoke in any area of a restaurant in which smoking is prohibited as provided in this section. Any person who continues to smoke in such area after having been asked to refrain from smoking shall be subject to a civil penalty of not more than $25.
1164	1160
1165	1161		G. It shall be an affirmative defense to a complaint brought against a proprietor for a violation of this section that the proprietor or an employee of such proprietor:
1166	1162
1167	1163		1. Posted a "No Smoking" sign as required;
1168	1164
1169	1165		2. Removed all ashtrays and other smoking paraphernalia from all areas where smoking is prohibited;
1170	1166
1171	1167		3. Refused to seat or serve any individual who was smoking in a prohibited area; and
1172	1168
1173	1169		4. If the individual continued to smoke after an initial warning, asked the individual to leave the establishment.
1174	1170
1175	1171		H. Civil penalties assessed under this section shall be paid into the Virginia Health Care Fund established under 32.1-366.
1176	1172
1177	1173		I. Any local health department or its designee shall, while inspecting a restaurant as otherwise required by law, inspect for compliance with this section.
1178	1174
1179	1175		18.2-325. Definitions.
1180	1176
1181	1177		1. "Illegal gambling" means the making, placing, or receipt of any bet or wager in the Commonwealth of money or other consideration or thing of value, made in exchange for a chance to win a prize, stake, or other consideration or thing of value, dependent upon the result of any game, contest, or any other event the outcome of which is uncertain or a matter of chance, whether such game, contest, or event occurs or is to occur inside or outside the limits of the Commonwealth.
1182	1178
1183	1179		For the purposes of this subdivision and notwithstanding any provision in this section to the contrary, the making, placing, or receipt of any bet or wager of money or other consideration or thing of value shall include the purchase of a product, Internet access, or other thing made in exchange for a chance to win a prize, stake, or other consideration or thing of value by means of the operation of a gambling device as described in subdivision 3 b, regardless of whether the chance to win such prize, stake, or other consideration or thing of value may be offered in the absence of a purchase.
1184	1180
1185	1181		"Illegal gambling" also means the playing or offering for play of any skill game.
1186	1182
1187	1183		2. "Interstate gambling" means the conduct of an enterprise for profit that engages in the purchase or sale within the Commonwealth of any interest in a lottery of another state or country whether or not such interest is an actual lottery ticket, receipt, contingent promise to pay, order to purchase, or other record of such interest.
1188	1184
1189	1185		3. "Gambling device" includes:
1190	1186
1191	1187		a. Any device, machine, paraphernalia, equipment, or other thing, including books, records, and other papers, which are actually used in an illegal gambling operation or activity;
1192	1188
1193	1189		b. Any machine, apparatus, implement, instrument, contrivance, board, or other thing, or electronic or video versions thereof, including but not limited to those dependent upon the insertion of a coin or other object for their operation, which operates, either completely automatically or with the aid of some physical act by the player or operator, in such a manner that, depending upon elements of chance, it may eject something of value or determine the prize or other thing of value to which the player is entitled, provided, however, that the return to the user of nothing more than additional chances or the right to use such machine is not deemed something of value within the meaning of this subsection; and provided further, that machines that only sell, or entitle the user to, items of merchandise of equivalent value that may differ from each other in composition, size, shape, or color, shall not be deemed gambling devices within the meaning of this subsection; and
1194	1190
1195	1191		c. Skill games.
1196	1192
1197	1193		Such devices are no less gambling devices if they indicate beforehand the definite result of one or more operations but not all the operations. Nor are they any less a gambling device because, apart from their use or adaptability as such, they may also sell or deliver something of value on a basis other than chance.
1198	1194
1199	1195		4. "Operator" includes any person, firm, or association of persons, who conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling enterprise, activity, or operation.
1200	1196
1201	1197		5. "Skill" means the knowledge, dexterity, or any other ability or expertise of a natural person.
1202	1198
1203	1199		6. "Skill game" means an electronic, computerized, or mechanical contrivance, terminal, machine, or other device that requires the insertion of a coin, currency, ticket, token, or similar object to operate, activate, or play a game, the outcome of which is determined by any element of skill of the player and that may deliver or entitle the person playing or operating the device to receive cash or cash equivalents, gift cards, vouchers, billets, tickets, tokens, or electronic credits to be exchanged for cash or cash equivalents whether the payoff is made automatically from the device or manually. "Skill game" includes (i) a device that contains a meter or measurement device that records the number of free games or portions of games that are rewarded and (ii) a device designed or adapted to enable a person using the device to increase the chances of winning free games or portions of games by paying more than the amount that is ordinarily required to play the game. "Skill game" does not include any amusement device, as defined in 18.2-334.6.
1204	1200
1205	1201		7. "Unregulated location" means any location that is not regulated or operated by the Virginia Lottery or Virginia Lottery Board, the Department of Agriculture and Consumer Services, the Virginia Alcoholic Beverage Control Authority, or the Virginia Racing Gaming Commission.
1206	1202
1207	1203		18.2-326. Penalty for illegal gambling.
1208	1204
1209	1205		Except as otherwise provided in this article, any person who illegally gambles or engages in interstate gambling as defined in 18.2-325 shall be is guilty of a Class 3 misdemeanor. If an association or pool of persons illegally gamble, each person therein shall be is guilty of illegal gambling.
1210	1206
1211	1207		However, if any person makes, places, or receives any bet or wager of money or other thing of value on a horse race in the Commonwealth, whether the race is inside or outside the limits of the Commonwealth at any place or through any means other than (i) at a racetrack licensed by the Virginia Racing Gaming Commission pursuant to Chapter 29 6 ( 59.1-364 29.5-600 et seq.) of Title 59.1 29.5 or (ii) at a satellite facility or through advance deposit account wagering, as those terms are defined in 59.1-365 29.5-601, licensed by the Virginia Racing Gaming Commission pursuant to Chapter 29 6 ( 59.1-364 29.5-600 et seq.) of Title 59.1 29.5, such person shall be is guilty of a Class 1 misdemeanor. For the purposes of this paragraph, venue shall be in any county or city in which any act was performed in furtherance of any course of conduct constituting illegal gambling.
1212	1208
1213	1209		18.2-334.2. Same; bingo games, raffles, duck races, and Texas Hold'em poker tournaments conducted by certain organizations.
1214	1210
1215	1211		Nothing in this article shall apply to any bingo game, instant bingo, network bingo, raffle, duck race, or Texas Hold'em poker tournament conducted solely by organizations as defined in 18.2-340.16 29.5-200 which have received a permit as set forth in 18.2-340.25 29.5-209, or which are exempt from the permit requirement under 18.2-340.23 29.5-206.
1216	1212
1217	1213		18.2-334.3. Exemptions to article.
1218	1214
1219	1215		Nothing in this article shall apply to:
1220	1216
1221	1217		1. Any lottery conducted by the Commonwealth pursuant to Article 1 Subtitle II ( 58.1-4000 29.5-700 et seq.) of Chapter 40 of Title 58.1 29.5;
1222	1218
1223	1219		2. Any sports betting or related activity that is lawful under Article 2 ( 58.1-4030 et seq.) of Chapter 40 4 ( 29.5-400 et seq.) of Title 58.1 29.5; or
1224	1220
1225	1221		3. The placement or operation of or communication to and from data center equipment in the Commonwealth associated with the hosting of lottery games duly authorized by another state or jurisdiction and regulated and operated consistent with and exclusively for the benefit of such state or jurisdiction, provided that wagering on such games is legally authorized in such other state or jurisdiction and the individuals wagering on such games are required by the laws or regulations of such other state or jurisdiction to be physically located within the geographic bounds of such other state or jurisdiction at the time the wager is initiated or placed.
1226	1222
1227	1223		18.2-334.4. Exemptions to article; pari-mutuel wagering.
1228	1224
1229	1225		Nothing in this article shall be construed to make it illegal to participate in any race meeting or pari-mutuel wagering conducted in accordance with Chapter 29 6 ( 59.1-364 29.5-600 et seq.) of Title 59.1 29.5.
1230	1226
1231	1227		18.2-334.5. Exemptions to article; certain gaming operations.
1232	1228
1233	1229		Nothing in this article shall be construed to make it illegal to participate in any casino gaming operation conducted in accordance with Chapter 41 3 ( 58.1-4100 29.5-300 et seq.) of Title 58.1 29.5.
1234	1230
1235	1231		19.2-66. When Attorney General or Chief Deputy Attorney General may apply for order authorizing interception of communications.
1236	1232
1237	1233		A. The Attorney General or Chief Deputy Attorney General, if the Attorney General so designates in writing, in any case where the Attorney General is authorized by law to prosecute or pursuant to a request in his official capacity of an attorney for the Commonwealth in any city or county, may apply to a judge of competent jurisdiction for an order authorizing the interception of wire, electronic, or oral communications by the Department of State Police, when such interception may reasonably be expected to provide evidence of the commission of a felonious offense of extortion, bribery, kidnapping, murder, any felony violation of 18.2-248 or 18.2-248.1, any felony violation of Chapter 29 ( 59.1-364 et seq.) of Title 59.1, any felony violation of Article 2 ( 18.2-38 et seq.), Article 2.1 ( 18.2-46.1 et seq.), Article 2.2 ( 18.2-46.4 et seq.), Article 5 ( 18.2-58 et seq.), Article 6 ( 18.2-59 et seq.), or any felonies that are not Class 6 felonies in Article 7 ( 18.2-61 et seq.) of Chapter 4 of Title 18.2, any felony violation of Chapter 6 ( 29.5-600 et seq.) of Title 29.5, or any conspiracy to commit any of the foregoing offenses. The Attorney General or Chief Deputy Attorney General may apply for authorization for the observation or monitoring of the interception by a police department of a county or city, by a sheriff's office, or by law-enforcement officers of the United States. Such application shall be made, and such order may be granted, in conformity with the provisions of 19.2-68.
1238	1234
1239	1235		B. The application for an order under subsection B of 19.2-68 shall be made as follows:
1240	1236
1241	1237		1. In the case of an application for a wire or electronic interception, a judge of competent jurisdiction shall have the authority to issue an order under subsection B of 19.2-68 if there is probable cause to believe that an offense was committed, is being committed, or will be committed or the person or persons whose communications are to be intercepted live, work, subscribe to a wire or electronic communication system, maintain an address or a post office box, or are making the communication within the territorial jurisdiction of the court.
1242	1238
1243	1239		2. In the case of an application for an oral intercept, a judge of competent jurisdiction shall have the authority to issue an order under subsection B of 19.2-68 if there is probable cause to believe that an offense was committed, is being committed, or will be committed or the physical location of the oral communication to be intercepted is within the territorial jurisdiction of the court.
1244	1240
1245	1241		C. For the purposes of an order entered pursuant to subsection B of 19.2-68 for the interception of a wire or electronic communication, such communication shall be deemed to be intercepted in the jurisdiction where the order is entered, regardless of the physical location or the method by which the communication is captured or routed to the monitoring location.
1246	1242
1247	1243		19.2-215.1. Functions of a multi-jurisdiction grand jury.
1248	1244
1249	1245		The functions of a multi-jurisdiction grand jury are:
1250	1246
1251	1247		1. To investigate any condition that involves or tends to promote criminal violations of:
1252	1248
1253	1249		a. Title 10.1 for which punishment as a felony is authorized;
1254	1250
1255	1251		b. Section 13.1-520;
1256	1252
1257	1253		c. Sections 18.2-47 and 18.2-48;
1258	1254
1259	1255		d. Sections 18.2-111 and 18.2-112;
1260	1256
1261	1257		e. Article 6 ( 18.2-59 et seq.) of Chapter 4 of Title 18.2;
1262	1258
1263	1259		f. Article 7.1 ( 18.2-152.1 et seq.) of Chapter 5 of Title 18.2;
1264	1260
1265	1261		g. Article 1 ( 18.2-247 et seq.) and Article 1.1 ( 18.2-265.1 et seq.) of Chapter 7 of Title 18.2;
1266	1262
1267	1263		h. Article 1 ( 18.2-325 et seq.) and Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 of Title 18.2, Chapter 29 and Chapters 2 ( 59.1-364 29.5-200 et seq.) and 6 ( 29.5-600 et seq.) of Title 59.1 29.5 or any other provision prohibiting, limiting, regulating, or otherwise affecting gaming or gambling activity;
1268	1264
1269	1265		i. Section 18.2-434, when violations occur before a multi-jurisdiction grand jury;
1270	1266
1271	1267		j. Article 2 ( 18.2-438 et seq.) and Article 3 ( 18.2-446 et seq.) of Chapter 10 of Title 18.2;
1272	1268
1273	1269		k. Section 18.2-460 for which punishment as a felony is authorized;
1274	1270
1275	1271		l. Article 1.1 ( 18.2-498.1 et seq.) of Chapter 12 of Title 18.2;
1276	1272
1277	1273		m. Article 1 ( 32.1-310 et seq.) of Chapter 9 of Title 32.1;
1278	1274
1279	1275		n. Chapter 4.2 ( 59.1-68.6 et seq.) of Title 59.1;
1280	1276
1281	1277		o. Article 9 ( 3.2-6570 et seq.) of Chapter 65 of Title 3.2;
1282	1278
1283	1279		p. Article 1 ( 18.2-30 et seq.) of Chapter 4 of Title 18.2;
1284	1280
1285	1281		q. Article 2.1 ( 18.2-46.1 et seq.) and Article 2.2 ( 18.2-46.4 et seq.) of Chapter 4 of Title 18.2;
1286	1282
1287	1283		r. Article 5 ( 18.2-186 et seq.) and Article 6 ( 18.2-191 et seq.) of Chapter 6 of Title 18.2;
1288	1284
1289	1285		s. Chapter 6.1 ( 59.1-92.1 et seq.) of Title 59.1;
1290	1286
1291	1287		t. Section 18.2-178 where the violation involves insurance fraud;
1292	1288
1293	1289		u. Section 18.2-346.01, 18.2-348, or 18.2-349 for which punishment as a felony is authorized or 18.2-355, 18.2-356, 18.2-357, or 18.2-357.1;
1294	1290
1295	1291		v. Article 9 ( 18.2-246.1 et seq.) of Chapter 6 of Title 18.2;
1296	1292
1297	1293		w. Article 2 ( 18.2-38 et seq.) of Chapter 4 of Title 18.2;
1298	1294
1299	1295		x. Malicious felonious assault and malicious bodily wounding under Article 4 ( 18.2-51 et seq.) of Chapter 4 of Title 18.2;
1300	1296
1301	1297		y. Article 5 ( 18.2-58 et seq.) of Chapter 4 of Title 18.2;
1302	1298
1303	1299		z. Felonious sexual assault under Article 7 ( 18.2-61 et seq.) of Chapter 4 of Title 18.2;
1304	1300
1305	1301		aa. Arson in violation of 18.2-77 when the structure burned was occupied or a Class 3 felony violation of 18.2-79;
1306	1302
1307	1303		ab. Chapter 13 ( 18.2-512 et seq.) of Title 18.2;
1308	1304
1309	1305		ac. Section 18.2-246.14 and Chapter 10 ( 58.1-1000 et seq.) of Title 58.1;
1310	1306
1311	1307		ad. Subsection A or B of 18.2-57 where the victim was selected because of his race, religious conviction, gender, disability, gender identity, sexual orientation, color, or ethnic or national origin;
1312	1308
1313	1309		ae. Section 18.2-121 for which punishment as a felony is authorized;
1314	1310
1315	1311		af. Article 5 ( 18.2-420 et seq.) of Chapter 9 of Title 18.2;
1316	1312
1317	1313		ag. 18.2-178.1 and 18.2-178.2;
1318	1314
1319	1315		ah. 18.2-369; and
1320	1316
1321	1317		ai. Any other provision of law when such condition is discovered in the course of an investigation that a multi-jurisdiction grand jury is otherwise authorized to undertake and to investigate any condition that involves or tends to promote any attempt, solicitation, or conspiracy to violate the laws enumerated in this section.
1322	1318
1323	1319		2. To report evidence of any criminal offense enumerated in subdivision 1 and for which a court reporter has recorded all oral testimony as provided by 19.2-215.9 to the attorney for the Commonwealth or United States attorney of any jurisdiction where such offense could be prosecuted or investigated, or to the chief law-enforcement officer of any jurisdiction where such offense could be prosecuted or investigated, or to a sworn investigator designated pursuant to 19.2-215.6, or, when appropriate, to the Attorney General.
1324	1320
1325	1321		3. To consider bills of indictment prepared by a special counsel to determine whether there is sufficient probable cause to return each such indictment as a "true bill." Only bills of indictment which allege an offense enumerated in subdivision 1 may be submitted to a multi-jurisdiction grand jury.
1326	1322
1327	1323		4. The provisions of this section shall not abrogate the authority of an attorney for the Commonwealth in a particular jurisdiction to determine the course of a prosecution in that jurisdiction.
1328	1324
1329	1325		19.2-389. Dissemination of criminal history record information.
1330	1326
1331	1327		A. Criminal history record information shall be disseminated, whether directly or through an intermediary, only to:
1332	1328
1333	1329		1. Authorized officers or employees of criminal justice agencies, as defined by 9.1-101, for purposes of the administration of criminal justice and the screening of an employment application or review of employment by a criminal justice agency with respect to its own employees or applicants, and dissemination to the Virginia Parole Board, pursuant to this subdivision, of such information on all state-responsible inmates for the purpose of making parole determinations pursuant to subdivisions 1, 2, 3, 4, and 6 of 53.1-136 shall include collective dissemination by electronic means every 30 days. For purposes of this subdivision, criminal history record information includes information sent to the Central Criminal Records Exchange pursuant to 37.2-819 and 64.2-2014 when disseminated to any full-time or part-time employee of the State Police, a police department or sheriff's office that is a part of or administered by the Commonwealth or any political subdivision thereof, and who is responsible for the prevention and detection of crime and the enforcement of the penal, traffic or highway laws of the Commonwealth for the purposes of the administration of criminal justice;
1334	1330
1335	1331		2. Such other individuals and agencies that require criminal history record information to implement a state or federal statute or executive order of the President of the United States or Governor that expressly refers to criminal conduct and contains requirements or exclusions expressly based upon such conduct, except that information concerning the arrest of an individual may not be disseminated to a noncriminal justice agency or individual if an interval of one year has elapsed from the date of the arrest and no disposition of the charge has been recorded and no active prosecution of the charge is pending;
1336	1332
1337	1333		3. Individuals and agencies pursuant to a specific agreement with a criminal justice agency to provide services required for the administration of criminal justice pursuant to that agreement which shall specifically authorize access to data, limit the use of data to purposes for which given, and ensure the security and confidentiality of the data;
1338	1334
1339	1335		4. Individuals and agencies for the express purpose of research, evaluative, or statistical activities pursuant to an agreement with a criminal justice agency that shall specifically authorize access to data, limit the use of data to research, evaluative, or statistical purposes, and ensure the confidentiality and security of the data;
1340	1336
1341	1337		5. Agencies of state or federal government that are authorized by state or federal statute or executive order of the President of the United States or Governor to conduct investigations determining employment suitability or eligibility for security clearances allowing access to classified information;
1342	1338
1343	1339		6. Individuals and agencies where authorized by court order or court rule;
1344	1340
1345	1341		7. Agencies of any political subdivision of the Commonwealth, public transportation companies owned, operated or controlled by any political subdivision, and any public service corporation that operates a public transit system owned by a local government for the conduct of investigations of applicants for employment, permit, or license whenever, in the interest of public welfare or safety, it is necessary to determine under a duly enacted ordinance if the past criminal conduct of a person with a conviction record would be compatible with the nature of the employment, permit, or license under consideration;
1346	1342
1347	1343		7a. Commissions created pursuant to the Transportation District Act of 1964 ( 33.2-1900 et seq.) of Title 33.2 and their contractors, for the conduct of investigations of individuals who have been offered a position of employment whenever, in the interest of public welfare or safety and as authorized in the Transportation District Act of 1964, it is necessary to determine if the past criminal conduct of a person with a conviction record would be compatible with the nature of the employment under consideration;
1348	1344
1349	1345		8. Public or private agencies when authorized or required by federal or state law or interstate compact to investigate (i) applicants for foster or adoptive parenthood or (ii) any individual, and the adult members of that individual's household, with whom the agency is considering placing a child or from whom the agency is considering removing a child due to abuse or neglect, on an emergency, temporary, or permanent basis pursuant to 63.2-901.1 and 63.2-1505, subject to the restriction that the data shall not be further disseminated to any party other than a federal or state authority or court as may be required to comply with an express requirement of law;
1350	1346
1351	1347		9. To the extent permitted by federal law or regulation, public service companies as defined in 56-1, for the conduct of investigations of applicants for employment when such employment involves personal contact with the public or when past criminal conduct of an applicant would be incompatible with the nature of the employment under consideration;
1352	1348
1353	1349		10. The appropriate authority for purposes of granting citizenship and for purposes of international travel, including, but not limited to, issuing visas and passports;
1354	1350
1355	1351		11. A person requesting a copy of his own criminal history record information as defined in 9.1-101 at his cost, except that criminal history record information shall be supplied at no charge to a person who has applied to be a volunteer with (i) a Virginia affiliate of Big Brothers/Big Sisters of America; (ii) a volunteer fire company; (iii) the Volunteer Emergency Families for Children; (iv) any affiliate of Prevent Child Abuse, Virginia; (v) any Virginia affiliate of Compeer; or (vi) any board member or any individual who has been offered membership on the board of a Crime Stoppers, Crime Solvers or Crime Line program as defined in 15.2-1713.1;
1356	1352
1357	1353		12. Administrators and board presidents of and applicants for licensure or registration as a child welfare agency as defined in 63.2-100 for dissemination to the Commissioner of Social Services' representative pursuant to 63.2-1702 for the conduct of investigations with respect to employees of and volunteers at such facilities, caretakers, and foster and adoptive parent applicants of private child-placing agencies, pursuant to 63.2-1719, 63.2-1720, and 63.2-1721, subject to the restriction that the data shall not be further disseminated by the facility or agency to any party other than the data subject, the Commissioner of Social Services' representative or a federal or state authority or court as may be required to comply with an express requirement of law for such further dissemination; however, nothing in this subdivision shall be construed to prohibit the Commissioner of Social Services' representative from issuing written certifications regarding the results of a background check that was conducted before July 1, 2021, in accordance with subsection J of 22.1-289.035 or 22.1-289.039;
1358	1354
1359	1355		13. The Department of Social Services for the purpose of screening individuals as a condition of licensure, employment, volunteering, or providing services on a regular basis in a licensed child welfare agency pursuant to 63.2-1721 and 63.2-1726 or foster or adoptive home approved by a child-placing agency pursuant to 63.2-901.1;
1360	1356
1361	1357		14. The school boards of the Commonwealth for the purpose of screening individuals who are offered or who accept public school employment and those current school board employees for whom a report of arrest has been made pursuant to 19.2-83.1;
1362	1358
1363	1359		15. The Virginia Lottery for the conduct of investigations as set forth in the Virginia Lottery Law ( 58.1-4000 29.5-700 et seq.) and casino gaming as set forth in Chapter 41 ( 58.1-4100 et seq.) of Title 58.1, and the Department of Agriculture and Consumer Services the Virginia Gaming Commission for the conduct of investigations as set forth in Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 of Title 18.2 Chapters 2 ( 29.5-200 et seq.) and 6 ( 29.5-600 et seq.) of Title 29.5;
1364	1360
1365	1361		16. Licensed nursing homes, hospitals and home care organizations for the conduct of investigations of applicants for compensated employment in licensed nursing homes pursuant to 32.1-126.01, hospital pharmacies pursuant to 32.1-126.02, and home care organizations pursuant to 32.1-162.9:1, subject to the limitations set out in subsection E;
1366	1362
1367	1363		17. Licensed assisted living facilities and licensed adult day centers for the conduct of investigations of applicants for compensated employment in licensed assisted living facilities and licensed adult day centers pursuant to 63.2-1720, subject to the limitations set out in subsection F;
1368	1364
1369	1365		18. The Virginia Alcoholic Beverage Control Authority for the conduct of investigations as set forth in 4.1-103.1;
1370	1366
1371	1367		19. The State Board of Elections and authorized officers and employees thereof and general registrars appointed pursuant to 24.2-110 in the course of conducting necessary investigations with respect to voter registration, limited to any record of felony convictions;
1372	1368
1373	1369		20. The Commissioner of Behavioral Health and Developmental Services (the Commissioner) or his designees for individuals who are committed to the custody of or being evaluated by the Commissioner pursuant to 19.2-168.1, 19.2-169.1, 19.2-169.2, 19.2-169.5, 19.2-169.6, 19.2-182.2, 19.2-182.3, 19.2-182.8, and 19.2-182.9 where such information may be beneficial for the purpose of placement, evaluation, treatment, or discharge planning;
1374	1370
1375	1371		21. Any alcohol safety action program certified by the Commission on the Virginia Alcohol Safety Action Program for (i) interventions with first offenders under 18.2-251 or (ii) services to offenders under 18.2-51.4, 18.2-266, or 18.2-266.1;
1376	1372
1377	1373		22. Residential facilities for juveniles regulated or operated by the Department of Social Services, the Department of Education, or the Department of Behavioral Health and Developmental Services for the purpose of determining applicants' fitness for employment or for providing volunteer or contractual services;
1378	1374
1379	1375		23. The Department of Behavioral Health and Developmental Services and facilities operated by the Department for the purpose of determining an individual's fitness for employment pursuant to departmental instructions;
1380	1376
1381	1377		24. Pursuant to 22.1-296.3, the governing boards or administrators of private elementary or secondary schools which are accredited pursuant to 22.1-19 or a private organization coordinating such records information on behalf of such governing boards or administrators pursuant to a written agreement with the Department of State Police;
1382	1378
1383	1379		25. Public institutions of higher education and nonprofit private institutions of higher education for the purpose of screening individuals who are offered or accept employment;
1384	1380
1385	1381		26. Members of a threat assessment team established by a local school board pursuant to 22.1-79.4, by a public institution of higher education pursuant to 23.1-805, or by a private nonprofit institution of higher education, for the purpose of assessing or intervening with an individual whose behavior may present a threat to safety; however, no member of a threat assessment team shall redisclose any criminal history record information obtained pursuant to this section or otherwise use any record of an individual beyond the purpose that such disclosure was made to the threat assessment team;
1386	1382
1387	1383		27. Executive directors of community services boards or the personnel director serving the community services board for the purpose of determining an individual's fitness for employment, approval as a sponsored residential service provider, permission to enter into a shared living arrangement with a person receiving medical assistance services pursuant to a waiver, or permission for any person under contract with the community services board to serve in a direct care position on behalf of the community services board pursuant to 37.2-506, 37.2-506.1, and 37.2-607;
1388	1384
1389	1385		28. Executive directors of behavioral health authorities as defined in 37.2-600 for the purpose of determining an individual's fitness for employment, approval as a sponsored residential service provider, permission to enter into a shared living arrangement with a person receiving medical assistance services pursuant to a waiver, or permission for any person under contract with the behavioral health authority to serve in a direct care position on behalf of the behavioral health authority pursuant to 37.2-506, 37.2-506.1, and 37.2-607;
1390	1386
1391	1387		29. The Commissioner of Social Services for the purpose of locating persons who owe child support or who are alleged in a pending paternity proceeding to be a putative father, provided that only the name, address, demographics and social security number of the data subject shall be released;
1392	1388
1393	1389		30. Authorized officers or directors of agencies licensed pursuant to Article 2 ( 37.2-403 et seq.) of Chapter 4 of Title 37.2 by the Department of Behavioral Health and Developmental Services for the purpose of determining if any applicant who accepts employment in any direct care position or requests approval as a sponsored residential service provider, permission to enter into a shared living arrangement with a person receiving medical assistance services pursuant to a waiver, or permission for any person under contract with the provider to serve in a direct care position has been convicted of a crime that affects his fitness to have responsibility for the safety and well-being of individuals with mental illness, intellectual disability, or substance abuse pursuant to 37.2-416, 37.2-416.1, 37.2-506, 37.2-506.1, and 37.2-607;
1394	1390
1395	1391		31. The Commissioner of the Department of Motor Vehicles, for the purpose of evaluating applicants for and holders of a motor carrier certificate or license subject to the provisions of Chapters 20 ( 46.2-2000 et seq.) and 21 ( 46.2-2100 et seq.) of Title 46.2;
1396	1392
1397	1393		32. The Chairman of the Senate Committee for Courts of Justice or the Chairman of the House Committee for Courts of Justice for the purpose of determining if any person being considered for election to any judgeship has been convicted of a crime;
1398	1394
1399	1395		33. Heads of state agencies in which positions have been identified as sensitive for the purpose of determining an individual's fitness for employment in positions designated as sensitive under Department of Human Resource Management policies developed pursuant to 2.2-1201.1;
1400	1396
1401	1397		34. The Office of the Attorney General, for all criminal justice activities otherwise permitted under subdivision A 1 and for purposes of performing duties required by the Civil Commitment of Sexually Violent Predators Act ( 37.2-900 et seq.);
1402	1398
1403	1399		35. Shipyards, to the extent permitted by federal law or regulation, engaged in the design, construction, overhaul, or repair of nuclear vessels for the United States Navy, including their subsidiary companies, for the conduct of investigations of applications for employment or for access to facilities, by contractors, leased laborers, and other visitors;
1404	1400
1405	1401		36. Any employer of individuals whose employment requires that they enter the homes of others, for the purpose of screening individuals who apply for, are offered, or have accepted such employment;
1406	1402
1407	1403		37. Public agencies when and as required by federal or state law to investigate (i) applicants as providers of adult foster care and home-based services or (ii) any individual with whom the agency is considering placing an adult on an emergency, temporary, or permanent basis pursuant to 63.2-1601.1, subject to the restriction that the data shall not be further disseminated by the agency to any party other than a federal or state authority or court as may be required to comply with an express requirement of law for such further dissemination, subject to limitations set out in subsection G;
1408	1404
1409	1405		38. The Department of Medical Assistance Services, or its designee, for the purpose of screening individuals who, through contracts, subcontracts, or direct employment, volunteer, apply for, are offered, or have accepted a position related to the provision of transportation services to enrollees in the Medicaid Program or the Family Access to Medical Insurance Security (FAMIS) Program, or any other program administered by the Department of Medical Assistance Services;
1410	1406
1411	1407		39. The State Corporation Commission for the purpose of investigating individuals who are current or proposed members, senior officers, directors, and principals of an applicant or person licensed under Chapter 16 ( 6.2-1600 et seq.), Chapter 19 ( 6.2-1900 et seq.), or Chapter 26 ( 6.2-2600 et seq.) of Title 6.2. Notwithstanding any other provision of law, if an application is denied based in whole or in part on information obtained from the Central Criminal Records Exchange pursuant to Chapter 16, 19, or 26 of Title 6.2, the Commissioner of Financial Institutions or his designee may disclose such information to the applicant or its designee;
1412	1408
1413	1409		40. The Department of Professional and Occupational Regulation for the purpose of investigating individuals for initial licensure pursuant to 54.1-2106.1;
1414	1410
1415	1411		41. The Department for Aging and Rehabilitative Services and the Department for the Blind and Vision Impaired for the purpose of evaluating an individual's fitness for various types of employment and for the purpose of delivering comprehensive vocational rehabilitation services pursuant to Article 11 ( 51.5-170 et seq.) of Chapter 14 of Title 51.5 that will assist the individual in obtaining employment;
1416	1412
1417	1413		42. Bail bondsmen, in accordance with the provisions of 19.2-120;
1418	1414
1419	1415		43. The State Treasurer for the purpose of determining whether a person receiving compensation for wrongful incarceration meets the conditions for continued compensation under 8.01-195.12;
1420	1416
1421	1417		44. The Department of Education or its agents or designees for the purpose of screening individuals seeking to enter into a contract with the Department of Education or its agents or designees for the provision of child care services for which child care subsidy payments may be provided;
1422	1418
1423	1419		45. The Department of Juvenile Justice to investigate any parent, guardian, or other adult members of a juvenile's household when completing a predispositional or postdispositional report required by 16.1-273 or a Board of Juvenile Justice regulation promulgated pursuant to 16.1-233;
1424	1420
1425	1421		46. The State Corporation Commission, for the purpose of screening applicants for insurance licensure under Chapter 18 ( 38.2-1800 et seq.) of Title 38.2;
1426	1422
1427	1423		47. Administrators and board presidents of and applicants for licensure or registration as a child day program or family day system, as such terms are defined in 22.1-289.02, for dissemination to the Superintendent of Public Instruction's representative pursuant to 22.1-289.013 for the conduct of investigations with respect to employees of and volunteers at such facilities pursuant to 22.1-289.034 through 22.1-289.037, subject to the restriction that the data shall not be further disseminated by the facility or agency to any party other than the data subject, the Superintendent of Public Instruction's representative, or a federal or state authority or court as may be required to comply with an express requirement of law for such further dissemination; however, nothing in this subdivision shall be construed to prohibit the Superintendent of Public Instruction's representative from issuing written certifications regarding the results of prior background checks in accordance with subsection J of 22.1-289.035 or 22.1-289.039;
1428	1424
1429	1425		48. The National Center for Missing and Exploited Children for the purpose of screening individuals who are offered or accept employment or will be providing volunteer or contractual services with the National Center for Missing and Exploited Children;
1430	1426
1431	1427		49. The Executive Director or investigators of the Board of Accountancy for the purpose of the enforcement of laws relating to the Board of Accountancy in accordance with 54.1-4407; and
1432	1428
1433	1429		50. Other entities as otherwise provided by law.
1434	1430
1435	1431		Upon an ex parte motion of a defendant in a felony case and upon the showing that the records requested may be relevant to such case, the court shall enter an order requiring the Central Criminal Records Exchange to furnish the defendant, as soon as practicable, copies of any records of persons designated in the order on whom a report has been made under the provisions of this chapter.
1436	1432
1437	1433		Notwithstanding any other provision of this chapter to the contrary, upon a written request sworn to before an officer authorized to take acknowledgments, the Central Criminal Records Exchange, or the criminal justice agency in cases of offenses not required to be reported to the Exchange, shall furnish a copy of conviction data covering the person named in the request to the person making the request; however, such person on whom the data is being obtained shall consent in writing, under oath, to the making of such request. A person receiving a copy of his own conviction data may utilize or further disseminate that data as he deems appropriate. In the event no conviction data is maintained on the data subject, the person making the request shall be furnished at his cost a certification to that effect.
1438	1434
1439	1435		B. Use of criminal history record information disseminated to noncriminal justice agencies under this section shall be limited to the purposes for which it was given and may not be disseminated further, except as otherwise provided in subdivision A 47.
1440	1436
1441	1437		C. No criminal justice agency or person shall confirm the existence or nonexistence of criminal history record information for employment or licensing inquiries except as provided by law.
1442	1438
1443	1439		D. Criminal justice agencies shall establish procedures to query the Central Criminal Records Exchange prior to dissemination of any criminal history record information on offenses required to be reported to the Central Criminal Records Exchange to ensure that the most up-to-date disposition data is being used. Inquiries of the Exchange shall be made prior to any dissemination except in those cases where time is of the essence and the normal response time of the Exchange would exceed the necessary time period. A criminal justice agency to whom a request has been made for the dissemination of criminal history record information that is required to be reported to the Central Criminal Records Exchange may direct the inquirer to the Central Criminal Records Exchange for such dissemination. Dissemination of information regarding offenses not required to be reported to the Exchange shall be made by the criminal justice agency maintaining the record as required by 15.2-1722.
1444	1440
1445	1441		E. Criminal history information provided to licensed nursing homes, hospitals and to home care organizations pursuant to subdivision A 16 shall be limited to the convictions on file with the Exchange for any offense specified in 32.1-126.01, 32.1-126.02, and 32.1-162.9:1.
1446	1442
1447	1443		F. Criminal history information provided to licensed assisted living facilities and licensed adult day centers pursuant to subdivision A 17 shall be limited to the convictions on file with the Exchange for any offense specified in 63.2-1720.
1448	1444
1449	1445		G. Criminal history information provided to public agencies pursuant to subdivision A 37 shall be limited to the convictions on file with the Exchange for any offense set forth in clause (i) of the definition of barrier crime in 19.2-392.02.
1450	1446
1451	1447		H. Upon receipt of a written request from an employer or prospective employer, the Central Criminal Records Exchange, or the criminal justice agency in cases of offenses not required to be reported to the Exchange, shall furnish at the employer's cost a copy of conviction data covering the person named in the request to the employer or prospective employer making the request, provided that the person on whom the data is being obtained has consented in writing to the making of such request and has presented a photo-identification to the employer or prospective employer. In the event no conviction data is maintained on the person named in the request, the requesting employer or prospective employer shall be furnished at his cost a certification to that effect. The criminal history record search shall be conducted on forms provided by the Exchange.
1452	1448
1453	1449		I. Nothing in this section shall preclude the dissemination of a person's criminal history record information pursuant to the rules of court for obtaining discovery or for review by the court.
1454	1450
1455	1451		19.2-390. Reports to be made by local law-enforcement officers, conservators of the peace, clerks of court, Secretary of the Commonwealth, and Corrections officials to State Police; material submitted by other agencies.
1456	1452
1457	1453		A. 1. Every state official or agency having the power to arrest, the sheriffs of counties, the police officials of cities and towns, and any other local law-enforcement officer or conservator of the peace having the power to arrest for a felony shall make a report to the Central Criminal Records Exchange, on forms provided by it, of any arrest, including those arrests involving the taking into custody of, or service of process upon, any person on charges resulting from an indictment, presentment or information, the arrest on capias or warrant for failure to appear, and the service of a warrant for another jurisdiction, for each charge when any person is arrested on any of the following charges:
1458	1454
1459	1455		a. Treason;
1460	1456
1461	1457		b. Any felony;
1462	1458
1463	1459		c. Any offense punishable as a misdemeanor under Title 54.1;
1464	1460
1465	1461		d. Any misdemeanor punishable by confinement in jail (i) under Title 18.2 or 19.2, or any similar ordinance of any county, city or town, (ii) under 20-61, or (iii) under 16.1-253.2; or
1466	1462
1467	1463		e. Any offense in violation of 3.2-6570, 4.1-309.1, 5.1-13, 15.2-1612, 22.1-289.041, 29.5-808, 46.2-339, 46.2-341.21, 46.2-341.24, 46.2-341.26:3, 46.2-817, 58.1-3141, 58.1-4018.1, 60.2-632, or 63.2-1509.
1468	1464
1469	1465		The reports shall contain such information as is required by the Exchange and shall be accompanied by fingerprints of the individual arrested for each charge. Effective January 1, 2006, the corresponding photograph of the individual arrested shall accompany the report. Fingerprint cards prepared by a law-enforcement agency for inclusion in a national criminal justice file shall be forwarded to the Exchange for transmittal to the appropriate bureau. Nothing in this section shall preclude each local law-enforcement agency from maintaining its own separate photographic database. Fingerprints and photographs required to be taken pursuant to this subsection or subdivision A 3c of 19.2-123 may be taken at the facility where the magistrate is located, including a regional jail, even if the accused is not committed to jail.
1470	1466
1471	1467		Law-enforcement agencies and clerks of court shall only submit reports to the Central Criminal Records Exchange only for those offenses enumerated in this subsection. Only reports received for those offenses enumerated in this subsection shall be included in the Central Criminal Records Exchange.
1472	1468
1473	1469		2. For persons arrested and released on summonses in accordance with subsection B of 19.2-73 or 19.2-74, such report shall not be required until (i) a conviction is entered and no appeal is noted or if an appeal is noted, the conviction is upheld upon appeal or the person convicted withdraws his appeal; (ii) the court defers or dismisses the proceeding pursuant to 18.2-57.3, 18.2-251, or 19.2-303.2; or (iii) an acquittal by reason of insanity pursuant to 19.2-182.2 is entered. Upon such conviction or acquittal, the court shall remand the individual to the custody of the office of the chief law-enforcement officer of the county or city. It shall be the duty of the chief law-enforcement officer, or his designee who may be the arresting officer, to ensure that such report is completed for each charge after a determination of guilt or acquittal by reason of insanity. The court shall require the officer to complete the report immediately following the person's conviction or acquittal, and the individual shall be discharged from custody forthwith, unless the court has imposed a jail sentence to be served by him or ordered him committed to the custody of the Commissioner of Behavioral Health and Developmental Services.
1474	1470
1475	1471		3. For persons arrested on a capias for any allegation of a violation of the terms or conditions of a suspended sentence or probation for a felony offense pursuant to 18.2-456, 19.2-306, or 53.1-165, a report shall be made to the Central Criminal Records Exchange pursuant to subdivision 1. Upon finding such person in violation of the terms or conditions of a suspended sentence or probation for such felony offense, the court shall order that the fingerprints and photograph of such person be taken by a law-enforcement officer for each such offense and submitted to the Central Criminal Records Exchange.
1476	1472
1477	1473		4. For any person served with a show cause for any allegation of a violation of the terms or conditions of a suspended sentence or probation for a felony offense pursuant to 18.2-456, 19.2-306, or 53.1-165, such report to the Central Criminal Records Exchange shall not be required until such person is found to be in violation of the terms or conditions of a suspended sentence or probation for such felony offense. Upon finding such person in violation of the terms or conditions of a suspended sentence or probation for such felony offense, the court shall order that the fingerprints and photograph of such person be taken by a law-enforcement officer for each such offense and submitted to the Central Criminal Records Exchange.
1478	1474
1479	1475		5. If the accused is in custody when an indictment or presentment is found or made, or information is filed, and no process is awarded, the attorney for the Commonwealth shall so notify the court of such at the time of first appearance for each indictment, presentment, or information for which a report is required upon arrest pursuant to subdivision 1, and the court shall order that the fingerprints and photograph of the accused be taken for each offense by a law-enforcement officer or by the agency that has custody of the accused at the time of first appearance. The law-enforcement officer or agency taking the fingerprints and photograph shall submit a report to the Central Criminal Records Exchange for each offense.
1480	1476
1481	1477		B. Within 72 hours following the receipt of (i) a warrant or capias for the arrest of any person on a charge of a felony or (ii) a Governor's warrant of arrest of a person issued pursuant to 19.2-92, the law-enforcement agency which received the warrant shall enter the person's name and other appropriate information required by the Department of State Police into the "information systems" known as the Virginia Criminal Information Network (VCIN), established and maintained by the Department pursuant to Chapter 2 ( 52-12 et seq.) of Title 52 and the National Crime Information Center (NCIC), maintained by the Federal Bureau of Investigation. The report shall include the person's name, date of birth, social security number and such other known information which the State Police or Federal Bureau of Investigation may require. Where feasible and practical, the magistrate or court issuing the warrant or capias may transfer information electronically into VCIN. When the information is electronically transferred to VCIN, the court or magistrate shall forthwith forward the warrant or capias to the local police department or sheriff's office. When criminal process has been ordered destroyed pursuant to 19.2-76.1, the law-enforcement agency destroying such process shall ensure the removal of any information relating to the destroyed criminal process from the VCIN and NCIC.
1482	1478
1483	1479		B1. Within 72 hours following the receipt of a written statement issued by a parole officer pursuant to 53.1-149 or 53.1-162 authorizing the arrest of a person who has violated the provisions of his post-release supervision or probation, the law-enforcement agency that received the written statement shall enter, or cause to be entered, the person's name and other appropriate information required by the Department of State Police into the "information systems" known as the Virginia Criminal Information Network (VCIN), established and maintained by the Department pursuant to Chapter 2 ( 52-12 et seq.) of Title 52.
1484	1480
1485	1481		C. For offenses not charged on a summons in accordance with subsection B of 19.2-73 or 19.2-74, the clerk of each circuit court and district court shall make an electronic report to the Central Criminal Records Exchange of (i) any dismissal, including a dismissal pursuant to 18.2-57.3, 18.2-251, or 19.2-303.2, indefinite postponement or continuance, charge still pending due to mental incompetency or incapacity, deferral, nolle prosequi, acquittal, or conviction of, including any sentence imposed, or failure of a grand jury to return a true bill as to, any person charged with an offense listed in subsection A, including any action that may have resulted from an indictment, presentment or information, or any finding that the person is in violation of the terms or conditions of a suspended sentence or probation for a felony offense and (ii) any adjudication of delinquency based upon an act that, if committed by an adult, would require fingerprints to be filed pursuant to subsection A. For offenses listed in subsection A and charged on a summons in accordance with subsection B of 19.2-73 or 19.2-74, such electronic report by the clerk of each circuit court and district court to the Central Criminal Records Exchange may be submitted but shall not be required until (a) a conviction is entered and no appeal is noted or, if an appeal is noted, the conviction is upheld upon appeal or the person convicted withdraws his appeal; (b) the court defers or dismisses the proceeding pursuant to 18.2-57.3, 18.2-251, or 19.2-303.2; or (c) an acquittal by reason of insanity pursuant to 19.2-182.2 is entered. The clerk of each circuit court shall make an electronic report to the Central Criminal Records Exchange of any finding that a person charged on a summons is in violation of the terms or conditions of a suspended sentence or probation for a felony offense. Upon conviction of any person, including juveniles tried and convicted in the circuit courts pursuant to 16.1-269.1, whether sentenced as adults or juveniles, for an offense for which registration is required as defined in 9.1-902, the clerk shall within seven days of sentencing submit a report to the Sex Offender and Crimes Against Minors Registry. The report to the Registry shall include the name of the person convicted and all aliases that he is known to have used, the date and locality of the conviction for which registration is required, his date of birth, social security number, and last known address, and specific reference to the offense for which he was convicted. No report of conviction or adjudication in a district court shall be filed unless the period allowed for an appeal has elapsed and no appeal has been perfected. In the event that the records in the office of any clerk show that any conviction or adjudication has been nullified in any manner, he shall also make a report of that fact to the Exchange and, if appropriate, to the Registry. In addition, each clerk of a circuit court, upon receipt of certification thereof from the Supreme Court, shall report to the Exchange or the Registry, or to the law-enforcement agency making the arrest in the case of offenses not required to be reported to the Exchange, on forms provided by the Exchange or Registry, as the case may be, any reversal or other amendment to a prior sentence or disposition previously reported. When criminal process is ordered destroyed pursuant to 19.2-76.1, the clerk shall report such action to the law-enforcement agency that entered the warrant or capias into the VCIN.
1486	1482
1487	1483		D. In addition to those offenses enumerated in subsection A, the Central Criminal Records Exchange may receive, classify, and file any other fingerprints, photographs, and records of confinement submitted to it by any correctional institution or the Department of Corrections. Unless otherwise prohibited by law, any such fingerprints, photographs, and records received by the Central Criminal Records Exchange from any correctional institution or the Department of Corrections may be classified and filed as criminal history record information.
1488	1484
1489	1485		E. Corrections officials, sheriffs, and jail superintendents of regional jails, responsible for maintaining correctional status information, as required by the regulations of the Department of Criminal Justice Services, with respect to individuals about whom reports have been made under the provisions of this chapter shall make reports of changes in correctional status information to the Central Criminal Records Exchange. The reports to the Exchange shall include any commitment to or release or escape from a state or local correctional facility, including commitment to or release from a parole or probation agency.
1490	1486
1491	1487		F. Any pardon, reprieve, or executive commutation of sentence by the Governor shall be reported to the Exchange by the office of the Secretary of the Commonwealth.
1492	1488
1493	1489		G. Officials responsible for reporting disposition of charges, and correctional changes of status of individuals under this section, including those reports made to the Registry, shall adopt procedures reasonably designed at a minimum (i) to ensure that such reports are accurately made as soon as feasible by the most expeditious means and in no instance later than 30 days after occurrence of the disposition or correctional change of status and (ii) to report promptly any correction, deletion, or revision of the information.
1494	1490
1495	1491		H. Upon receiving a correction, deletion, or revision of information, the Central Criminal Records Exchange shall notify all criminal justice agencies known to have previously received the information.
1496	1492
1497	1493		I. As used in this section:
1498	1494
1499	1495		"Chief law-enforcement officer" means the chief of police of cities and towns and sheriffs of counties, unless a political subdivision has otherwise designated its chief law-enforcement officer by appropriate resolution or ordinance, in which case the local designation shall be controlling.
1500	1496
1501	1497		"Electronic report" means a report transmitted to, or otherwise forwarded to, the Central Criminal Records Exchange in an electronic format approved by the Exchange. The report shall contain the name of the person convicted and all aliases which he is known to have used, the date and locality of the conviction, his date of birth, social security number, last known address, and specific reference to the offense including the Virginia Code section and any subsection, the Virginia crime code for the offense, and the offense tracking number for the offense for which he was convicted.
1502	1498
1503	1499		22.1-140.1. School Construction Fund and Program.
1504	1500
1505	1501		A. For the purpose of this section:
1506	1502
1507	1503		"Local school division" includes joint or regional schools established pursuant to 22.1-26.
1508	1504
1509	1505		"Public school buildings and facilities" or "public school buildings" includes any building or facility used for career and technical education programs provided at any regional comprehensive school established pursuant to 22.1-26.
1510	1506
1511	1507		B. There is hereby created in the state treasury a special nonreverting fund to be known as the School Construction Fund. The Fund shall be established on the books of the Comptroller. All funds appropriated for such purpose, including funds appropriated pursuant to subdivision B 5 of 58.1-4125 29.5-327, and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purposes of awarding grants pursuant to the School Construction Program established in subsection C. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the president of the Board.
1512	1508
1513	1509		C. There is hereby established the School Construction Program (the Program) for the purpose of awarding grants from the Fund to local school boards to fund the construction of new public school buildings or the renovation or expansion of existing public school buildings and facilities in the local school division. The Program shall be administered by the Board in accordance with criteria and other requirements set forth in the general appropriation act.
1514	1510
1515	1511		TITLE 29.5.
1516	1512
1517	1513		GAMING AND WAGERING.
1518	1514
1519	1515		SUBTITLE I.
1520	1516
1521	1517		VIRGINIA GAMING COMMISSION.
1522	1518
1523	1519		CHAPTER 1.
1524	1520
1525	1521		GENERAL PROVISIONS.
1526	1522
1527	1523		29.5-100. Definitions.
1528	1524
1529	1525		As used in this subtitle, unless the context requires a different meaning:
1530	1526
1531	1527		"Board" means the Virginia Gaming Commission Board established pursuant to 29.5-103.
1532	1528
1533	1529		"Commission" means the Virginia Gaming Commission established pursuant to 29.5-101.
1534	1530
1535	1531		"Commissioner" means the Commissioner of the Virginia Gaming Commission appointed pursuant 29.5-102.
1536	1532
1537	1533		"Executive Secretary" means the Executive Secretary of Racing and Deputy Commissioner of Gaming appointed pursuant to 29.5-105.
1538	1534
1539	1535		"Racing Commission" means the Virginia Racing Commission established pursuant to 29.5-602.
1540	1536
1541	1537		29.5-101. Virginia Gaming Commission established.
1542	1538
1543	1539		Notwithstanding the provisions of Article 1 ( 18.2-325 et seq.) of Chapter 8 of Title 18.2 or any other provision of law, there is hereby established as an independent agency of the Commonwealth, exclusive of the legislative, executive, or judicial branches of government, the Virginia Gaming Commission, which shall include the (i) Virginia Racing Commission established pursuant to 29.5-602, (ii) Charitable Gaming Advisory Board established pursuant to 29.5-201, and (iii) Virginia Gaming Commission Board established pursuant to 29.5-103 and a Commissioner appointed pursuant to 29.5-102 for the purpose of overseeing all gaming regulatory operations in the Commonwealth, except as otherwise provided in Subtitle II ( 29.5-700 et seq.).
1544	1540
1545	1541		29.5-102. Commissioner appointed; salary; powers and duties.
1546	1542
1547	1543		A. The Commission shall be under the immediate supervision and direction of a Commissioner, who shall be a person of good reputation, particularly as to honesty and integrity, and shall be subject to a thorough background investigation conducted by the Department of State Police prior to appointment. The Commissioner shall possess demonstrated experience and expertise in one or more of the following fields: law, finance, public policy, or management of a significant regulatory enterprise. The Commissioner shall be appointed by and serve at the pleasure of the Governor, subject to confirmation by a majority of the members elected to each house of the General Assembly if in session when the appointment is made, and if not in session, then at its next succeeding session. The Commissioner shall receive a salary as provided in the general appropriation act.
1548	1544
1549	1545		The Commissioner shall devote his full time to the performance of his official duties and shall not be engaged in any other profession or occupation.
1550	1546
1551	1547		Before entering upon the discharge of his duties, the Commissioner shall take an oath that he will faithfully and honestly execute the duties of his office during his continuance therein and shall give bond in such amount as may be fixed by the Governor, conditioned upon the faithful discharge of his duties. The premium on such bond shall be paid out of the Commonwealth Gaming Operations Fund, established pursuant to 29.5-119.
1552	1548
1553	1549		B. The Commissioner shall have the following powers and duties:
1554	1550
1555	1551		1. Supervise and administer the operation of the Virginia Gaming Commission in accordance with the provisions of this subtitle and with the rules and regulations promulgated pursuant to this subtitle.
1556	1552
1557	1553		2. Employ such (i) deputy commissioners; (ii) professional, technical, and clerical assistants; and (iii) other qualified personnel as may be required to carry out the functions and duties of the Commission, including (a) an Executive Secretary of Racing and Deputy Commissioner of Gaming, (b) a Deputy Commissioner of Gaming and Regulatory Oversight, (c) a Chief Operating Officer, and (d) all necessary regular and special counsel notwithstanding the provisions of Chapter 5 ( 2.2-500 et seq.) of Title 2.2.
1558	1554
1559	1555		3. Act as secretary and executive officer of the Board.
1560	1556
1561	1557		4. Require bond or other surety satisfactory to the Commissioner from Commission employees with access to Commission funds, in such amount as provided in the rules and regulations of the Board. The Commissioner may also require bond from other employees, as he deems necessary.
1562	1558
1563	1559		5. Confer regularly, but not less than four times each year, with the Board on the operation and oversight of gaming activities regulated by the Commission; make available for inspection by the Board, upon request, all books, records, files, and other information and documents of the Commission; and advise the Board and recommend such matters as he deems necessary and advisable to improve the operation and oversight of gaming activities regulated by the Commission.
1564	1560
1565	1561		6. Suspend, revoke, or refuse to renew any license, permit, or registration issued pursuant to this subtitle or the rules and regulations adopted pursuant to this subtitle.
1566	1562
1567	1563		7. Enter into any arrangements with any foreign or domestic governmental agency for the purposes of exchanging information or performing any other act to better ensure the proper conduct of all gaming activities regulated by the Commission pursuant to this subtitle or the efficient conduct of the Commissioner's duties.
1568	1564
1569	1565		8. Participate in the Problem Gambling Treatment and Support Advisory Committee established pursuant to 37.2-304 by the Department of Behavioral Health and Developmental Services to enable collaboration among prevention and treatment providers and operators of legal gaming in the Commonwealth on efforts to reduce the negative effects of problem gambling.
1570	1566
1571	1567		C. The Commissioner shall establish the following divisions within the Commission:
1572	1568
1573	1569		1. A Problem Gambling Division for the purpose of coordinating with local, state, and national stakeholders to manage problem gambling research, prevention, recovery, and treatment efforts.
1574	1570
1575	1571		2. An External Affairs and Policy Division for the purpose of communicating with relevant stakeholders in the Commonwealth and recommending gaming policy decisions and legislative proposals to the General Assembly.
1576	1572
1577	1573		3. Any other division necessary to accomplish the goals of this subtitle.
1578	1574
1579	1575		29.5-103. Virginia Gaming Commission Board established; membership; appointment; terms; compensation.
1580	1576
1581	1577		A. There is hereby created the Virginia Gaming Commission Board (the Board) within the Virginia Gaming Commission. The Board shall have a total membership of 11 members that shall consist of nine nonlegislative citizen members and two ex officio members. Members shall be appointed as follows: five nonlegislative citizen members, who shall be appointed by and serve at the pleasure of the Governor, subject to confirmation by a majority of the members elected to each house of the General Assembly if in session when the appointment is made, and if not in session, then at its next succeeding session; two nonlegislative citizen members appointed by the Speaker of the House of Delegates from a list of at least four nominees provided by the Chairman of the House Committee on General Laws; and two nonlegislative citizen members appointed by the Senate Committee on Rules from a list of at least four nominees provided by the Chairman of the Senate Committee on General Laws and Technology. Of the nonlegislative citizen members appointed by the Governor, at least one nonlegislative citizen member shall have experience in criminal investigations and law enforcement, and at least one nonlegislative citizen member shall be a certified public accountant authorized to practice in the Commonwealth or have experience in corporate finance and securities. A current member of the Virginia Racing Commission and the Executive Secretary of Racing and Deputy Commissioner of Gaming, or his designee, shall serve ex officio with nonvoting privileges. Nonlegislative citizen members of the Board shall be individuals of good reputation, particularly as to honesty and integrity, and shall be citizens of the Commonwealth. Consideration shall be given with respect to the political affiliation and the geographic residence of the nonlegislative citizen members prior to their appointment.
1582	1578
1583	1579		B. Ex officio members of the Board shall serve terms coincident with their terms of office. Appointments to fill vacancies, other than by expiration of a term, shall be for the unexpired terms. Vacancies shall be filled in the same manner as the original appointments. All members may be reappointed.
1584	1580
1585	1581		C. After the initial staggering of terms, nonlegislative citizen members shall be appointed for a term of five years. No nonlegislative citizen member shall serve more than two consecutive five-year terms. The remainder of any term to which a member is appointed to fill a vacancy shall not constitute a term in determining the member's eligibility for reappointment.
1586	1582
1587	1583		D. The Board shall elect a chairman and vice-chairman from among its membership. A majority of the members shall constitute a quorum. The meetings of the Board shall be held at the call of the chairman or whenever the majority of the members so request.
1588	1584
1589	1585		E. Members shall receive such compensation for the performance of their duties as provided in 2.2-2813. All members shall be reimbursed for all reasonable and necessary expenses incurred in the performance of their duties as provided in 2.2-2813 and 2.2-2825. Funding for the costs of compensation and expenses of the members shall be provided by the Virginia Gaming Commission.
1590	1586
1591	1587		F. Before entering upon the discharge of their duties, members shall take an oath that they will faithfully and honestly execute the duties of the office during their continuance therein and shall give bond in such amount as may be fixed by the Governor, conditioned upon the faithful discharge of their duties. The premium on such bond shall be paid out of the Commonwealth Gaming Operations Fund, established pursuant to 29.5-119.
1592	1588
1593	1589		G. No member shall:
1594	1590
1595	1591		1. Have any direct or indirect financial, ownership, or management interest in any gaming activities regulated by the Commission or any agency of the Commonwealth.
1596	1592
1597	1593		2. Receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities regulated by the Commission or any agency of the Commonwealth.
1598	1594
1599	1595		3. Have an interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of independent consulting services in connection with any gaming establishment or gaming activity regulated by the Commission or any agency of the Commonwealth.
1600	1596
1601	1597		29.5-104. Powers and duties of the Board.
1602	1598
1603	1599		A. The Board shall have the power to (i) promulgate regulations governing the establishment and operation of charitable gaming, casino gaming, sports betting, and fantasy contests pursuant to Chapter 2 ( 29.5-200 et seq.) and (ii) oversee the promulgation of regulations governing live horse racing, historical horse racing, and simulcast horse racing with pari-mutuel wagering pursuant to the provisions of Chapter 6 ( 29.5-600 et seq.). Such regulations shall be promulgated in accordance with the Administrative Process Act ( 2.2-4000 et seq.). The regulations shall provide for all matters necessary or desirable for the efficient, honest, and economical operation and administration of all forms of gaming regulated by the Board.
1604	1600
1605	1601		B. The Board shall also exercise the following powers and duties, and such others as may be provided by law:
1606	1602
1607	1603		1. Administer a voluntary exclusion program as provided in 29.5-118.
1608	1604
1609	1605		2. Establish a consumer protection program and publish a consumer protection bill of rights. Such program and bill of rights shall include measures to protect sports bettors, as defined in 29.5-400, with respect to identity, funds and accounts, consumer complaints, self-exclusion, and any other consumer protection measure the Board determines to be reasonable.
1610	1606
1611	1607		3. Adjust the percentage of uncollectible gaming receivables allowed to be subtracted from adjusted gross revenue, as defined in 29.5-400, if it determines that a different percentage is reasonable and customary in the sports betting industry.
1612	1608
1613	1609		4. Hear and decide an appeal of any (i) penalty, (ii) denial of a permit or renewal, or (iii) suspension or revocation of a permit imposed by the Commissioner pursuant to Chapter 4 ( 29.5-400 et seq.).
1614	1610
1615	1611		5. Promulgate regulations for the operation of a sports betting program under the direction of the Commissioner, who shall allow applicants to apply for permits to engage in sports betting operations in the Commonwealth. The Commission shall not operate a sports betting platform or a sports betting facility.
1616	1612
1617	1613		6. Partner with law-enforcement authorities, including the Office of the Attorney General and the Office of the Gaming Enforcement Coordinator in the Department of State Police, to address instances of illegal gaming activities in the Commonwealth.
1618	1614
1619	1615		C. The Board shall make policy and legislative recommendations to the Governor and General Assembly related to (i) the regulation of existing legal gaming and wagering, (ii) the expansion of new gaming types, and (iii) the eradication of illegal gaming activity in the Commonwealth.
1620	1616
1621	1617		29.5-105. Executive Secretary of Racing and Deputy Commissioner of Gaming; powers and duties.
1622	1618
1623	1619		A. The Executive Secretary of Racing and Deputy Commissioner of Gaming shall have the following powers and duties:
1624	1620
1625	1621		1. Appoint stewards pursuant to 29.5-605, with the advice of, in consultation with, and with the consent of the Virginia Racing Commission.
1626	1622
1627	1623		2. Keep a true and full record of all proceedings of the Racing Commission and preserve at the Virginia Gaming Commission's general office all books, documents, and papers of the Racing Commission.
1628	1624
1629	1625		3. Exercise and perform such powers and duties as may be delegated to him by the Commissioner or the Board or as may be conferred or imposed upon him by law.
1630	1626
1631	1627		B. Neither the Executive Secretary nor his spouse nor any member of his immediate family shall make any contributions to a candidate for office or office holder at the local or state level, or cause such a contribution to be made on his behalf.
1632	1628
1633	1629		29.5-106. Deputy Commissioner of Gaming and Regulatory Oversight; powers and duties.
1634	1630
1635	1631		A. The Deputy Commissioner of Gaming and Regulatory Oversight shall have the following powers and duties:
1636	1632
1637	1633		1. Oversee regulation of all gaming activities authorized pursuant to this subtitle;
1638	1634
1639	1635		2. Manage a gaming compliance and audit division for the Commission;
1640	1636
1641	1637		3. Assume responsibility for all gaming licensing and permitting and related investigations;
1642	1638
1643	1639		4. Oversee electronic gaming operations authorized pursuant to this subtitle;
1644	1640
1645	1641		5. Exercise and perform such powers and duties as may be delegated to him by the Commissioner or the Board or as may be conferred or imposed upon him by law.
1646	1642
1647	1643		B. Neither the Deputy Commissioner of Gaming and Regulatory Oversight nor his spouse nor any member of his immediate family shall make any contributions to a candidate for office or office holder at the local or state level, or cause such a contribution to be made on his behalf.
1648	1644
1649	1645		29.5-107. Chief Operating Officer; powers and duties.
1650	1646
1651	1647		A. The Chief Operating Officer shall have the following powers and duties:
1652	1648
1653	1649		1. Oversee and manage human resources, information technology systems, facilities and security, finance and accounting, purchasing, and internal auditing departments within the Commission; and
1654	1650
1655	1651		2. Exercise and perform such powers and duties as may be delegated to him by the Commissioner or the Board or as may be conferred or imposed upon him by law.
1656	1652
1657	1653		B. Neither the Chief Operating Officer nor his spouse nor any member of his immediate family shall make any contributions to a candidate for office or office holder at the local or state level, or cause such a contribution to be made on his behalf.
1658	1654
1659	1655		29.5-108. Financial interests of Board, employees, and family members prohibited.
1660	1656
1661	1657		A. No Board member or employee of the Commission shall (i) be a principal stockholder or (ii) otherwise have any financial interest, direct or indirect, in any licensee or permit holder subject to the provisions of this subtitle. No Board member and no spouse or immediate family member of a Board member shall make any contribution to a candidate for office or officeholder at the local or state level or cause such a contribution to be made on his behalf.
1662	1658
1663	1659		B. No employee of the Commission and no spouse or immediate family member of a Board member shall:
1664	1660
1665	1661		1. Have any direct or indirect financial, ownership, or management interest in any gaming activities regulated by the Commission or any agency of the Commonwealth.
1666	1662
1667	1663		2. Receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities regulated by the Commission or any agency of the Commonwealth.
1668	1664
1669	1665		3. Have an interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of independent consulting services in connection with any gaming establishment or gaming activity regulated by the Commission or any agency of the Commonwealth.
1670	1666
1671	1667		29.5-109. Leases and purchases of property by the Board.
1672	1668
1673	1669		The making of leases and the purchasing of real estate by the Board under the provisions of this subtitle are exempt from the Virginia Public Procurement Act ( 2.2-4300 et seq.). The Commission shall be exempt from the provisions of 2.2-1149 and from any rules, regulations, and guidelines of the Division of Engineering and Buildings of the Department of General Services in relation to leases of real property into which it enters.
1674	1670
1675	1671		29.5-110. Exemption of Commission from personnel and procurement procedures; information systems; etc.
1676	1672
1677	1673		A. The provisions of the Virginia Personnel Act ( 2.2-2900 et seq.) and the Virginia Public Procurement Act ( 2.2-4300 et seq.) shall not apply to the Commission in the exercise of any power conferred under this subtitle, nor shall the provisions of Chapter 20.1 ( 2.2-2005 et seq.) of Title 2.2 or Article 2 ( 51.1-1104 et seq.) of Chapter 11 of Title 51.1 apply to the Commission in the exercise of any power conferred under this subtitle.
1678	1674
1679	1675		B. To effect its implementation, the Commission's procurement of goods, services, insurance, and construction and the disposition of surplus materials shall be exempt from:
1680	1676
1681	1677		1. State agency requirements regarding disposition of surplus materials and distribution of proceeds from the sale or recycling of surplus materials under 2.2-1124 and 2.2-1125;
1682	1678
1683	1679		2. The requirement to purchase from the Department for the Blind and Vision Impaired under 2.2-1117; and
1684	1680
1685	1681		3. Any other state statutes, rules, regulations, or requirements relating to the procurement of goods, services, insurance, and construction, including Article 3 ( 2.2-1109 et seq.) of Chapter 11 of Title 2.2, regarding the duties, responsibilities, and authority of the Division of Purchases and Supply of the Department of General Services, and Article 4 ( 2.2-1129 et seq.) of Chapter 11 of Title 2.2, regarding the review and the oversight by the Division of Engineering and Buildings of the Department of General Services of contracts for the construction of the Commission's capital projects and construction-related professional services under 2.2-1132.
1686	1682
1687	1683		C. The Commission (i) may purchase from and participate in all statewide contracts for goods and services, including information technology goods and services; (ii) shall use directly or by integration or interface the Commonwealth's electronic procurement system subject to the terms and conditions agreed upon between the Commission and the Department of General Services; and (iii) shall post on the Department of General Services' central electronic procurement website all Invitations to Bid, Requests for Proposal, sole source award notices, and emergency award notices to ensure visibility and access to the Commission's procurement opportunities on one website.
1688	1684
1689	1685		29.5-111. Assistance from Department of State Police.
1690	1686
1691	1687		The Department of State Police shall assist in the conduct of investigations by the Commission.
1692	1688
1693	1689		29.5-112. Criminal history records check required on certain employees; reimbursement of costs.
1694	1690
1695	1691		All persons hired by the Commission whose job duties involve access to or handling of the Commission's funds shall be subject to a criminal history records check before, and as a condition of, employment.
1696	1692
1697	1693		The Board shall develop policies regarding the employment of persons who have been convicted of a felony or a crime involving moral turpitude.
1698	1694
1699	1695		The Department of State Police shall be reimbursed by the Commission for the cost of investigations conducted pursuant to this section.
1700	1696
1701	1697		29.5-113. Employees of the Commission.
1702	1698
1703	1699		Employees of the Commission shall be considered employees of the Commonwealth. Employees of the Commission shall be eligible for membership in the Virginia Retirement System or other retirement plan as authorized by Article 4 ( 51.1-125 et seq.) of Chapter 1 of Title 51.1 and participation in all health and related insurance and other benefits, including premium conversion and flexible benefits, available to state employees as provided by law. Employees of the Commission shall be employed on such terms and conditions as established by the Board. The Board shall develop and adopt policies and procedures that afford its employees grievance rights, ensure that employment decisions shall be based upon the merit and fitness of applicants, and prohibit discrimination because of race, color, religion, ethnic or national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, sexual orientation, gender identity, military status, or disability. Notwithstanding any other provision of law, the Board shall develop, implement, and administer a paid leave program, which may include annual, personal, and sick leave or any combination thereof. All other leave benefits shall be administered in accordance with Chapter 11 ( 51.1-1100 et seq.) of Title 51.1, except as otherwise provided in this section.
1704	1700
1705	1701		29.5-114. Liability of Board members; suits by and against Board members.
1706	1702
1707	1703		A. No Board member may be sued civilly for doing or omitting to do any act in the performance of his duties as prescribed by this subtitle, except by the Commonwealth, and then only in the Circuit Court of the City of Richmond. Such proceedings by the Commonwealth shall be instituted and conducted by the Attorney General.
1708	1704
1709	1705		B. The Board may, in the name of the Commonwealth, be sued in the Circuit Court of the City of Richmond to enforce any contract made by it or to recover damages for any breach thereof. The Board may defend the proceedings and may institute proceedings in any court. No such proceedings shall be taken against, or in the names of, the members of the Board.
1710	1706
1711	1707		29.5-115. Counsel for members, agents, and employees of Board.
1712	1708
1713	1709		If any member, agent, or employee of the Board is arrested, indicted, or otherwise prosecuted on any charge arising out of any act committed in the discharge of his official duties, the Board chairman may employ special counsel approved by the Attorney General to defend such member, agent, or employee. The compensation for special counsel employed pursuant to this section shall, subject to the approval of the Attorney General, be paid in the same manner as other expenses incident to the administration of this subtitle are paid.
1714	1710
1715	1711		29.5-116. Hearings; representation by counsel.
1716	1712
1717	1713		Any licensee, permittee, registrant, or applicant for a license, permit, or registration authorized by this subtitle shall have the right to be represented by counsel at any Board hearing for which he has received notice. The licensee, permittee, registrant, or applicant shall not be required to be represented by counsel during such hearing. Any officer or director of a corporation may examine, cross-examine, and question witnesses, present evidence on behalf of the corporation, and draw conclusions and make arguments before the Board or hearing officers without being in violation of the provisions of 54.1-3904.
1718	1714
1719	1715		29.5-117. Hearings; allowances to witnesses.
1720	1716
1721	1717		Witnesses subpoenaed to appear on behalf of the Board shall be entitled to the same allowance for expenses as witnesses for the Commonwealth in criminal cases in accordance with 17.1-611. Such allowances shall be paid out of the fund from which other costs incurred by the Board are paid upon certification to the Comptroller.
1722	1718
1723	1719		29.5-118. Voluntary exclusion program.
1724	1720
1725	1721		The Board shall adopt regulations to establish and implement a voluntary exclusion program.
1726	1722
1727	1723		The regulations shall include the following provisions:
1728	1724
1729	1725		1. Except as provided by regulation of the Board, a person who participates in the voluntary exclusion program agrees to refrain from (i) participating in charitable gaming, as defined in 29.5-200; (ii) engaging in any form of casino gaming authorized under the provisions of Chapter 3 ( 29.5-300 et seq.); (iii) participating in sports betting, as defined in 29.5-400; (iv) participating in fantasy contests, as defined in 29.5-500; (v) participating in pari-mutuel wagering on live horse racing, historical horse racing, or simulcast horse racing authorized pursuant to the provisions of Chapter 6 ( 29.5-600 et seq.); or (vi) playing any account-based lottery game authorized under the provisions of Subtitle II ( 29.5-700 et seq.). Any state agency, at the request of the Commission, shall assist in administering the voluntary exclusion program pursuant to the provisions of this section.
1730	1726
1731	1727		2. A person who participates in the voluntary exclusion program may choose an exclusion period of two years, five years, or lifetime.
1732	1728
1733	1729		3. Except as provided by regulation of the Board, a person who participates in the voluntary exclusion program may not petition the Board for removal from the voluntary exclusion program for the duration of his exclusion period.
1734	1730
1735	1731		4. The name of a person participating in the voluntary exclusion program shall be included on a list of excluded persons. The list of persons entering the voluntary exclusion program and the personal information of the participants shall be confidential, with dissemination by the Board limited to any parties the Board deems necessary for purposes of enforcement. The list and the personal information of participants in the voluntary exclusion program shall not be subject to disclosure under the Virginia Freedom of Information Act ( 2.2-3700 et seq.). In addition, the Board may disseminate the list to other parties upon request by the participant and agreement by the Board.
1736	1732
1737	1733		5. Permit holders, as defined in 29.5-400, and owners and operators of casino gaming establishments shall make all reasonable attempts as determined by the Board to cease all direct marketing efforts to a person participating in the voluntary exclusion program. The voluntary exclusion program shall not preclude permit holders or owners and operators of casino gaming establishments from seeking the payment of a debt incurred by a person before entering the voluntary exclusion program. In addition, any permit holder or owner or operator of a casino gaming establishment may share the names of individuals who self-exclude across its corporate enterprise, including sharing such information with any of its affiliates.
1738	1734
1739	1735		29.5-119. Commonwealth Gaming Operations Fund.
1740	1736
1741	1737		There is hereby created in the state treasury a special nonreverting fund to be known as the Commonwealth Gaming Operations Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All funds appropriated for such purpose and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely to offset the Commission's costs associated with (i) the conduct of investigations required pursuant to any provision of this subtitle and (ii) the enforcement of regulations promulgated by the Virginia Gaming Commission Board pursuant to 29.5-104. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Commissioner.
1742	1738
1743	1739		CHAPTER 2.
1744	1740
1745	1741		CHARITABLE GAMING.
1746	1742
1747	1743		29.5-200. Definitions.
1748	1744
1749	1745		As used in this chapter, unless the context requires a different meaning:
1750	1746
1751	1747		"Bingo" means a specific game of chance played with (i) individual cards having randomly numbered squares ranging from one to 75, (ii) Board-approved electronic devices that display facsimiles of bingo cards and are used for the purpose of marking and monitoring players' cards as numbers are called, or (iii) Board-approved cards, in which prizes are awarded on the basis of designated numbers on such cards conforming to a predetermined pattern of numbers selected at random.
1752	1748
1753	1749		"Bona fide member" means an individual who participates in activities of a qualified organization other than such organization's charitable gaming activities.
1754	1750
1755	1751		"Charitable gaming" or "charitable games" means those raffles, Texas Hold'em poker tournaments, and games of chance explicitly authorized by this chapter. Unless otherwise specified, "charitable gaming" includes electronic gaming authorized by this chapter.
1756	1752
1757	1753		"Charitable gaming permit" or "permit" means a permit issued by the Commissioner to an organization that authorizes such organization to conduct charitable gaming, and if such organization is qualified as a social organization, electronic gaming.
1758	1754
1759	1755		"Charitable gaming supplies" includes bingo cards or sheets, devices for selecting bingo numbers, instant bingo cards, pull-tab cards and seal cards, playing cards for Texas Hold'em poker, poker chips, and any other equipment or product manufactured for or intended to be used in the conduct of charitable games. However, for the purposes of this chapter, charitable gaming supplies shall not include items incidental to the conduct of charitable gaming such as markers, wands, or tape.
1760	1756
1761	1757		"Conduct" means the actions associated with the provision of a gaming operation during and immediately before or after the permitted activity, which may include (i) selling bingo cards or packs, electronic devices, instant bingo or pull-tab cards, or raffle tickets, (ii) calling bingo games, (iii) distributing prizes, and (iv) any other services provided by volunteer workers.
1762	1758
1763	1759		"Electronic gaming" or "electronic games" means any instant bingo, pull tab, or seal card gaming that is conducted primarily by use of an electronic device. "Electronic gaming" does not include (i) the game of chance identified in clause (ii) of the definition of "bingo" or (ii) network bingo.
1764	1760
1765	1761		"Electronic gaming adjusted gross receipts" means the gross receipts derived from electronic gaming less the total amount in prize money paid out to players.
1766	1762
1767	1763		"Electronic gaming manufacturer" means a manufacturer of electronic devices used to conduct electronic gaming.
1768	1764
1769	1765		"Fair market rental value" means the rent that a rental property will bring when offered for lease by a lessor who desires to lease the property but is not obligated to do so and leased by a lessee under no necessity of leasing.
1770	1766
1771	1767		"Gaming expenses" means prizes, supplies, costs of publicizing gaming activities, audit and administration or permit fees, and a portion of the rent, utilities, accounting and legal fees, and such other reasonable and proper expenses as are directly incurred for the conduct of charitable gaming.
1772	1768
1773	1769		"Gross receipts" means the total amount of money generated by an organization from charitable gaming before the deduction of expenses, including prizes.
1774	1770
1775	1771		"Instant bingo," "pull tabs," or "seal cards" means specific games of chance played by the random selection of one or more individually prepacked cards with winners being determined by the preprinted or predetermined appearance of concealed letters, numbers, or symbols that must be exposed by the player to determine wins and losses and may include the use of a seal card that conceals one or more numbers or symbols that have been designated in advance as prize winners. Such cards may be dispensed by mechanical equipment.
1776	1772
1777	1773		"Jackpot" means a bingo game that the organization has designated on its game program as a jackpot game in which the prize amount is greater than $100.
1778	1774
1779	1775		"Landlord" means any person or his agent, firm, association, organization, partnership, or corporation, employee, or immediate family member thereof, that owns and leases, or leases any premises devoted in whole or in part to the conduct of bingo games or other charitable gaming pursuant to this chapter, and any person residing in the same household as a landlord.
1780	1776
1781	1777		"Management" means the provision of oversight of a gaming operation, which may include the responsibilities of applying for and maintaining a permit or authorization, compiling, submitting, and maintaining required records and financial reports, and ensuring that all aspects of the operation are in compliance with all applicable statutes and regulations.
1782	1778
1783	1779		"Network bingo" means a specific bingo game in which pari-mutuel play is permitted.
1784	1780
1785	1781		"Network bingo provider" means a person licensed by the Commissioner to operate network bingo.
1786	1782
1787	1783		"Operation" means the activities associated with production of a charitable gaming or electronic gaming activity, which may include (i) the direct on-site supervision of the conduct of charitable gaming and electronic gaming; (ii) coordination of volunteers; and (iii) all responsibilities of charitable gaming and electronic gaming designated by the organization's management.
1788	1784
1789	1785		"Organization" means any one of the following:
1790	1786
1791	1787		1. A volunteer fire department or volunteer emergency medical services agency or auxiliary unit thereof that has been recognized in accordance with 15.2-955 by an ordinance or resolution of the political subdivision where the volunteer fire department or volunteer emergency medical services agency is located as being a part of the safety program of such political subdivision;
1792	1788
1793	1789		2. An organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code, is operated, and has always been operated, exclusively for educational purposes, and awards scholarships to accredited public institutions of higher education or other postsecondary schools licensed or certified by the Board of Education or the State Council of Higher Education for Virginia;
1794	1790
1795	1791		3. An athletic association or booster club or a band booster club established solely to raise funds for school-sponsored athletic or band activities for a public school or private school accredited pursuant to 22.1-19 or to provide scholarships to students attending such school;
1796	1792
1797	1793		4. An association of war veterans or auxiliary units thereof organized in the United States;
1798	1794
1799	1795		5. A fraternal association or corporation operating under the lodge system;
1800	1796
1801	1797		6. An organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code and is operated, and has always been operated, exclusively to provide services and other resources to older Virginians, as defined in 51.5-116;
1802	1798
1803	1799		7. An organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code and is operated, and has always been operated, exclusively to foster youth amateur sports;
1804	1800
1805	1801		8. An organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code and is operated, and has always been operated, exclusively to provide health care services or conduct medical research;
1806	1802
1807	1803		9. An accredited public institution of higher education or other postsecondary school licensed or certified by the Board of Education or the State Council of Higher Education for Virginia that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code;
1808	1804
1809	1805		10. A church or religious organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code;
1810	1806
1811	1807		11. An organization that is exempt from income tax pursuant to 501(c)(3) or 501(c)(4) of the Internal Revenue Code and is operated, and has always been operated, exclusively to (i) create and foster a spirit of understanding among the people of the world; (ii) promote the principles of good government and citizenship; (iii) take an active interest in the civic, cultural, social, and moral welfare of the community; (iv) provide a forum for the open discussion of matters of public interest; (v) encourage individuals to serve the community without personal financial reward; and (vi) encourage efficiency and promote high ethical standards in commerce, industries, professions, public works, and private endeavors;
1812	1808
1813	1809		12. An organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code and is operated, and has always been operated, exclusively to (i) raise awareness of law-enforcement officers who died in the line of duty; (ii) raise funds for the National Law Enforcement Officers Memorial and Museum; and (iii) raise funds for the charitable causes of other organizations that are exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code;
1814	1810
1815	1811		13. An organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code and is operated, and has always been operated, exclusively to (i) promote the conservation of the environment, caves, or other natural resources; (ii) promote or develop opportunities for the use of science and technology to advance the conservation of the environment, caves, or other natural resources; and (iii) raise funds for the conservation of the environment, caves, or other natural resources or provide grant opportunities to other nonprofit organizations that are devoted to such conservation efforts;
1816	1812
1817	1813		14. An organization that is exempt from income tax pursuant to 501(c)(3) of the Internal Revenue Code that manages a museum that is operated, and has always been operated, exclusively for the purposes of musical heritage and the legacy of the "1927 Bristol Sessions";
1818	1814
1819	1815		15. An organization (i) established on or before December 31, 1963, as a result of its members being prohibited from joining similar existing organizations because of laws such as the Public Assemblages Act of 1926, which required the racial segregation of all public events in the Commonwealth; (ii) that is exempt from income tax pursuant to 501(c)(7) of the Internal Revenue Code; and (iii) that is operated, and has always been operated, for community awareness and action through educational, economic, and cultural service activities;
1820	1816
1821	1817		16. An organization established on or before December 31, 1977, that is exempt from income tax pursuant to 501(c)(7) of the Internal Revenue Code and is incorporated, in part, to raise funds for donation to organizations whose missions include promoting early detection of and public education about and supporting research and treatment options for heart disease and various cancers;
1822	1818
1823	1819		17. A local chamber of commerce; or
1824	1820
1825	1821		18. Any other nonprofit organization that is exempt from income tax pursuant to 501(c) of the Internal Revenue Code and that raises funds by conducting raffles, bingo, instant bingo, pull tabs, or seal cards that generate annual gross receipts of $40,000 or less, provided that such gross receipts, less expenses and prizes, are used exclusively for charitable, educational, religious, or community purposes. Notwithstanding 29.5-213, proceeds from instant bingo, pull tabs, and seal cards shall be included when calculating an organization's annual gross receipts for the purposes of this subdivision.
1826	1822
1827	1823		"Pari-mutuel play" means an integrated network operated by a licensee of the Commission composed of participating charitable organizations for the conduct of network bingo games in which the purchase of a network bingo card by a player automatically includes the player in a pool with all other players in the network, and where the prize to the winning player is awarded based on a percentage of the total amount of network bingo cards sold in a particular network.
1828	1824
1829	1825		"Qualified organization" means any organization to which a valid permit has been issued by the Commissioner to conduct charitable gaming or any organization that is exempt pursuant to 29.5-206.
1830	1826
1831	1827		"Raffle" means a lottery in which the prize is won by (i) a random drawing of the name or prearranged number of one or more persons purchasing chances or (ii) a random contest in which the winning name or preassigned number of one or more persons purchasing chances is determined by a race involving inanimate objects floating on a body of water, commonly referred to as a "duck race."
1832	1828
1833	1829		"Reasonable and proper business expenses" means business expenses actually incurred by a qualified organization in the conduct of charitable gaming and not otherwise allowed under this chapter or under Board regulations on real estate and personal property tax payments, travel expenses, payments of utilities and trash collection services, legal and accounting fees, costs of business furniture, fixtures and office equipment and costs of acquisition, maintenance, repair, or construction of an organization's real property. For the purpose of this definition, (i) salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of an organization's members or (ii) expenses for social or recreational activities for the principal benefit of a social organization's members may qualify as a business expense, if so determined by the Board. However, payments made pursuant to 51.1-1204 to the Volunteer Firefighters' and Rescue Squad Workers' Service Award Fund shall be deemed a reasonable and proper business expense.
1834	1830
1835	1831		"Social organization" means any qualified organization that provides certification to the Commission that it is:
1836	1832
1837	1833		1. An accredited public institution of higher education or other postsecondary school licensed or certified by the Board of Education or the State Council of Higher Education for Virginia qualified under 501(c)(3) of the Internal Revenue Code;
1838	1834
1839	1835		2. An organization established on or before November 10, 1922, that is qualified under 501(c)(4) of the Internal Revenue Code, is the only federally chartered Marine Corps-related veterans organization in the country, and is operated for the purpose of promoting the interest and preserving the traditions of the United States Marine Corps;
1840	1836
1841	1837		3. An organization established on or before December 31, 1963, as a result of its members being prohibited from joining similar existing organizations because of laws such as the Public Assemblages Act of 1926, which required the racial segregation of all public events in the Commonwealth, that is qualified under 501(c)(7) of the Internal Revenue Code;
1842	1838
1843	1839		4. An organization established on or before December 31, 1977, that is qualified under 501(c)(7) of the Internal Revenue Code and is incorporated, in part, to raise funds for donation to organizations whose missions include promoting early detection of and public education about and supporting research and treatment options for heart disease and various cancers;
1844	1840
1845	1841		5. A fraternal beneficiary society, order, or association qualified under 501(c)(8) of the Internal Revenue Code;
1846	1842
1847	1843		6. A domestic fraternal society, order, or association qualified under 501(c)(10) of the Internal Revenue Code; or
1848	1844
1849	1845		7. A post or organization of past or present members of the Armed Forces of the United States, or an auxiliary unit or society of, or a trust or foundation for, any such post or organization qualified under 501(c)(19) of the Internal Revenue Code.
1850	1846
1851	1847		"Social quarters" means, in addition to any specifications prescribed by the Board, an area at a social organization's primary location that (i) such organization designates to be used predominantly by its members for social and recreational activities, (ii) is accessible exclusively to members of the social organization and their guests, and (iii) is not advertised or open to the general public. It shall not disqualify the area from being considered social quarters if guests occasionally accompany members into the area, so long as such guests do not spend their own funds to participate in charitable gaming or electronic gaming activities conducted in the area. In determining if an area is social quarters for purposes of 29.5-215, the Board may rely on publications of the Internal Revenue Service regarding the allowable participation of guests in an organization's social and recreational activities for purposes of 501 of the Internal Revenue Code.
1852	1848
1853	1849		"Supplier" means any person who offers to sell, sells, or otherwise provides charitable gaming supplies to any qualified organization.
1854	1850
1855	1851		"Texas Hold'em poker game" means a variation of poker in which (i) players receive two cards facedown that may be used individually, (ii) five cards shown face up are shared among all players in the game, (iii) players combine any number of their individual cards with the shared cards to make the highest five-card hand to win the value wagered during the game, and (iv) the ranking of hands and the rules of the game are governed by the official rules of the Poker Tournament Directors Association.
1856	1852
1857	1853		"Texas Hold'em poker tournament" or "tournament" means an organized competition of players (i) who pay a fixed fee for entry into the competition and for a certain amount of poker chips for use in the competition; (ii) who may be allowed to pay an additional fee, during set preannounced times of the competition, to receive additional poker chips for use in the competition; (iii) who may be seated at one or more tables simultaneously playing Texas Hold'em poker games; (iv) who upon running out of poker chips are eliminated from the competition; and (v) a pre-set number of whom are awarded prizes of value according to how long such players remain in the competition.
1858	1854
1859	1855		29.5-201. Charitable Gaming Advisory Board established; powers and duties.
1860	1856
1861	1857		A. The Charitable Gaming Advisory Board (the Advisory Board) is hereby established as an advisory board within the Virginia Gaming Commission for the purpose of advising the Commission on all aspects of the conduct of charitable gaming in Virginia.
1862	1858
1863	1859		B. The Advisory Board shall consist of nine members who shall be appointed by the Governor subject to confirmation by the General Assembly as follows: one member who is a member of a charitable organization subject to the provisions of this chapter in good standing with the Commission; one member who is a charitable gaming supplier registered and in good standing with the Commission; one member who is an owner, lessor, or lessee of premises where charitable gaming is conducted; at least one member who is or has been a law-enforcement officer in the Commonwealth but who (i) is not a charitable gaming supplier registered with the Commission, (ii) is not a lessor of premises where charitable gaming is conducted, (iii) is not a member of a charitable organization, and (iv) does not have an interest in or is not affiliated with such supplier or charitable organization or owner, lessor, or lessee of premises where charitable gaming is conducted; and five citizens who do not have an interest in or are not affiliated with a charitable organization, charitable gaming supplier, or owner, lessor, or lessee of premises where charitable gaming is conducted.
1864	1860
1865	1861		To the extent practicable, the Advisory Board shall consist of individuals from different geographic regions of the Commonwealth. Each member of the Advisory Board shall have been a resident of the Commonwealth for a period of at least three years next preceding his appointment, and his continued residency shall be a condition of his tenure in office. Members shall be appointed for four-year terms. Vacancies shall be filled by the Governor in the same manner as the original appointment for the unexpired portion of the term. Each Advisory Board member shall be eligible for reappointment for a second consecutive term at the discretion of the Governor. Persons who are first appointed to initial terms of less than four years shall thereafter be eligible for reappointment to two consecutive terms of four years each. No sitting member of the General Assembly shall be eligible for appointment to the Advisory Board. The members of the Advisory Board shall serve at the pleasure of the Governor.
1866	1862
1867	1863		C. The Advisory Board shall elect from among its members a chairman and vice-chairman from among its members.
1868	1864
1869	1865		D. A quorum shall consist of five members. The decision of a majority of those members present and voting shall constitute a decision of the Advisory Board.
1870	1866
1871	1867		E. For each day or part thereof spent in the performance of his duties, each member of the Advisory Board shall receive such compensation and reimbursement for his reasonable expenses as provided in 2.2-2104.
1872	1868
1873	1869		F. The Advisory Board shall adopt rules and procedures for the conduct of its business, including a provision that Advisory Board members shall abstain or otherwise recuse themselves from voting on any matter in which they or a member of their immediate family have a personal interest in a transaction as defined in 2.2-3101. The Advisory Board shall meet at least four times a year, and other meetings may be held at any time or place determined by the Advisory Board or upon call of the chairman or upon a written request to the chairman by any two members. Except for emergency meetings, all members shall be duly notified of the time and place of any regular or other meeting at least 10 days in advance of such meeting.
1874	1870
1875	1871		G. The Advisory Board shall:
1876	1872
1877	1873		1. Advise the Virginia Gaming Commission on the conduct of charitable gaming in Virginia and recommend changes to this chapter;
1878	1874
1879	1875		2. Advise on other matters related to charitable gaming that the Commission may request or the Advisory Board may deem necessary; and
1880	1876
1881	1877		3. Keep a complete and accurate record of its proceedings. A copy of such record and any other public records not exempt from disclosure under the Virginia Freedom of Information Act ( 2.2-3700 et seq.) shall be available for public inspection and copying during regular office hours at the Commission.
1882	1878
1883	1879		29.5-202. Powers and duties of the Commission and the Board.
1884	1880
1885	1881		The Commission shall have all powers and duties necessary to carry out the provisions of this chapter and to exercise the control of charitable gaming. Such powers and duties shall include the following:
1886	1882
1887	1883		1. The Commission is vested with jurisdiction and supervision over all charitable gaming authorized under the provisions of this chapter and including all persons that conduct or provide goods, services, or premises used in the conduct of charitable gaming. It may employ such persons as are necessary to ensure that charitable gaming is conducted in conformity with the provisions of this chapter and Board regulations. The Commission shall designate such agents and employees as it deems necessary and appropriate who shall be sworn to enforce the provisions of this chapter and the criminal laws of the Commonwealth and who shall be law-enforcement officers as defined in 9.1-101.
1888	1884
1889	1885		2. The Commission, its agents, and employees charged with the enforcement of charitable gaming laws shall have free access to the offices, facilities, or any other place of business of any organization, including any premises devoted in whole or in part to the conduct of charitable gaming. These individuals may enter such places or premises for the purpose of carrying out any duty imposed by this chapter, securing records required to be maintained by an organization, investigating complaints, or conducting audits.
1890	1886
1891	1887		3. The Board may compel the production of any books, documents, records, or memoranda of any organization, electronic gaming manufacturer, or supplier involved in the conduct of charitable gaming for the purpose of satisfying itself that this chapter and its regulations are strictly complied with. In addition, the Board may require the production of an annual balance sheet and operating statement of any person granted a permit pursuant to the provisions of this chapter and may require the production of any contract to which such person is or may be a party.
1892	1888
1893	1889		4. The Board may issue subpoenas for the attendance of witnesses before it, administer oaths, and compel production of records or other documents and testimony of such witnesses whenever, in the judgment of the Commission, it is necessary to do so for the effectual discharge of its duties.
1894	1890
1895	1891		5. The Board may compel any person conducting charitable gaming to file with the Commission such documents, information, or data as shall appear to the Commission to be necessary for the performance of its duties.
1896	1892
1897	1893		6. The Commissioner may enter into arrangements with any governmental agency of this or any other state or any locality in the Commonwealth or any agency of the federal government for the purposes of exchanging information or performing any other act to better ensure the proper conduct of charitable gaming.
1898	1894
1899	1895		7. The Commissioner may issue a charitable gaming permit while the permittee's tax-exempt status is pending approval by the Internal Revenue Service.
1900	1896
1901	1897		8. The Commission shall report annually to the Governor and the General Assembly, which report shall include a financial statement of the operation of the Commission and any recommendations for legislation applicable to charitable gaming in the Commonwealth.
1902	1898
1903	1899		9. The Commission, its agents, and employees may conduct such audits, in addition to those required by 29.5-223, as they deem necessary and desirable.
1904	1900
1905	1901		10. The Board may limit the number of organizations for which a person may manage, operate, or conduct charitable games.
1906	1902
1907	1903		11. The Board may promulgate regulations that require any landlord that leases to a qualified organization any premises devoted in whole or in part to the conduct of bingo games or any other charitable gaming to register with the Commission.
1908	1904
1909	1905		12. The Commission may report any alleged criminal violation of this chapter to the appropriate attorney for the Commonwealth for appropriate action.
1910	1906
1911	1907		13. Beginning July 1, 2026, and at least once every five years thereafter, the Commission shall convene a stakeholder work group to review the limitations on prize amounts and provide any recommendations to the General Assembly by November 30 of the year in which the stakeholder work group is convened.
1912	1908
1913	1909		29.5-203. Regulations of the Board.
1914	1910
1915	1911		A. The Board shall adopt regulations that:
1916	1912
1917	1913		1. Require, as a condition of receiving a charitable gaming permit or authorization to conduct electronic gaming, that the applicant use a predetermined percentage of its receipts for those lawful religious, charitable, community, or educational purposes for which the organization is specifically chartered or organized, including (i) those expenses relating to the acquisition, construction, maintenance, or repair of any interest in real property or (ii) expenses related to the rental of real property by an organization as described by subdivision 5, 6, or 7 of the definition of "social organization" in 29.5-200 where such real property is involved in the operation of the organization and used for lawful religious, charitable, community, or educational purposes, as follows:
1918	1914
1919	1915		a. With respect to charitable gaming, other than electronic gaming, a predetermined percentage of its gross receipts.
1920	1916
1921	1917		b. With respect to electronic gaming, a predetermined percentage of its electronic gaming adjusted gross receipts.
1922	1918
1923	1919		2. Specify the conditions under which a complete list of the organization's members who participate in the management, operation, or conduct of charitable gaming may be required in order for the Commissioner to ascertain the percentage of Virginia residents in accordance with subdivision A 3 of 29.5-207.
1924	1920
1925	1921		Membership lists furnished to the Commission in accordance with this subdivision shall not be a matter of public record and shall be exempt from disclosure under the provisions of the Virginia Freedom of Information Act ( 2.2-3700 et seq.).
1926	1922
1927	1923		3. Prescribe fees for processing applications for charitable gaming permits and authorizing social organizations to conduct electronic gaming. Such fees may reflect the nature and extent of the charitable gaming activity proposed to be conducted.
1928	1924
1929	1925		4. Establish requirements for the audit of all reports required in accordance with 29.5-221 and 29.5-222.
1930	1926
1931	1927		5. Define electronic and mechanical equipment used in the conduct of charitable gaming. Board regulations shall include capacity for such equipment to provide full automatic daubing as numbers are called. For the purposes of this subdivision, electronic or mechanical equipment for instant bingo, pull tabs, or seal cards shall include such equipment that displays facsimiles of instant bingo, pull tabs, or seal cards and is used solely for the purpose of dispensing or opening such paper or electronic cards, or both, but shall not include (i) devices operated by dropping one or more coins or tokens into a slot and pulling a handle or pushing a button or touchpoint on a touchscreen to activate one to three or more reels marked into horizontal segments by varying symbols, where the predetermined prize amount depends on how and how many of the symbols line up when the rotating reels come to rest, or (ii) other similar devices that display flashing lights or illuminations, or bells, whistles, or other sounds, solely intended to entice players to play. Such regulations shall not prohibit (a) devices that display spinning, rotating, or rolling reels or animations or flashing lights; (b) devices that accept vouchers; (c) the purchase and play of an electronic pull tab with a single press or touch of a button; or (d) the use of multiple video monitors or touchscreens on an electronic gaming device.
1932	1928
1933	1929		6. Prescribe the conditions under which a qualified organization may (i) provide food and nonalcoholic beverages to its members who participate in the management, operation, or conduct of bingo; (ii) permit members who participate in the management, operation, or conduct of bingo to play bingo; and (iii) subject to the provisions of subdivision 12 of 29.5-224, permit nonmembers to participate in the conduct of bingo so long as the nonmembers are under the direct supervision of a bona fide member of the organization during the bingo game.
1934	1930
1935	1931		7. Prescribe the conditions under which a qualified organization may sell raffle tickets for a raffle drawing that will be held outside the Commonwealth pursuant to subsection B of 29.5-212.
1936	1932
1937	1933		8. Prescribe the conditions under which persons who are bona fide members of a qualified organization or a child, above the age of 13 years, of a bona fide member of such organization may participate in the conduct or operation of bingo games.
1938	1934
1939	1935		9. Prescribe the conditions under which a person below the age of 18 years may play bingo, provided that such person is accompanied by his parent or legal guardian.
1940	1936
1941	1937		10. Require all qualified organizations that are subject to Board regulations to post in a conspicuous place in every place where charitable gaming is conducted a sign that bears a toll-free telephone number for "Gamblers Anonymous" or other organization that provides assistance to compulsive gamblers.
1942	1938
1943	1939		11. Require all qualified organizations that are subject to Board regulations to post in a conspicuous place in every place where charitable gaming is conducted a sign that bears the toll-free telephone number and website for the illegal gaming tip line established and administered by the Office of the Gaming Enforcement Coordinator in the Department of State Police pursuant to 52-54 for members of the public to report concerns about, or suspected instances of, illegal gaming activities.
1944	1940
1945	1941		12. Prescribe the conditions under which a qualified organization may sell network bingo cards in accordance with 29.5-218 and establish a percentage of proceeds derived from network bingo sales to be allocated to (i) prize pools, (ii) the organization conducting the network bingo, and (iii) the network bingo provider. The regulations shall also establish procedures for the retainage and ultimate distribution of any unclaimed prize.
1946	1942
1947	1943		13. Prescribe the conditions under which a qualified organization may manage, operate, or contract with operators of or conduct Texas Hold'em poker tournaments.
1948	1944
1949	1945		14. Prescribe the conditions under which a qualified organization may lease the premises of a permitted social organization for the purpose of conducting bingo, network bingo, instant bingo, pull tabs, seal cards, and electronic gaming permitted under this chapter and establish requirements for proper financial reporting of all disbursements, gross receipts, and electronic gaming adjusted gross receipts and payment of all fees required under this chapter.
1950	1946
1951	1947		B. The Board may, by regulation, approve variations to the card formats for bingo games, provided that such variations result in bingo games that are conducted in a manner consistent with the provisions of this chapter. Board-approved variations may include bingo games commonly referred to as player selection games and 90-number bingo.
1952	1948
1953	1949		29.5-204. Denial, suspension, or revocation of permit; hearings and appeals.
1954	1950
1955	1951		A. The Commissioner may deny, suspend, or revoke the permit of any organization found not to be in strict compliance with the provisions of this chapter and Board regulations. The action of the Commissioner in denying, suspending, or revoking any permit shall be subject to the Administrative Process Act ( 2.2-4000 et seq.).
1956	1952
1957	1953		B. Except as provided in 8.01-534, 29.5-209, 29.5-221, 29.5-222, and 29.5-228, no permit to conduct charitable gaming or authorization to conduct electronic gaming shall be denied, suspended, or revoked, and no charitable games or funds from charitable gaming operations shall be seized, except upon notice stating the proposed basis for such action and the time and place for the hearing. At the discretion of the Commissioner, hearings may be conducted by hearing officers who shall be selected from the list prepared by the Executive Secretary of the Supreme Court. After a hearing on the issues, the Commissioner may refuse to issue or may suspend or revoke any such permit or authorization if it determines that the organization has not complied with the provisions of this chapter or Board regulations.
1958	1954
1959	1955		C. Any person aggrieved by a refusal of the Commissioner to issue any permit, the suspension or revocation of a permit, or any other action of the Commission may seek review of such action in accordance with Article 5 ( 2.2-4025 et seq.) of the Administrative Process Act.
1960	1956
1961	1957		29.5-205. Permitted forms of gaming; prizes not gaming contracts.
1962	1958
1963	1959		A. This chapter permits qualified organizations to conduct (i) raffles, bingo, network bingo, instant bingo games, and Texas Hold'em poker tournaments and (ii) electronic gaming authorized pursuant to the provisions of 29.5-215. All games not explicitly authorized by this chapter or Board regulations adopted in accordance with 29.5-203 are prohibited. Nothing herein shall be construed to authorize the Board to approve the conduct of any other form of poker in the Commonwealth.
1964	1960
1965	1961		B. The award of any prize money for any charitable game shall not be deemed to be part of any gaming contract within the purview of 11-14.
1966	1962
1967	1963		C. Nothing in this chapter shall prohibit an organization from using the Virginia Lottery's Pick-3 number or any number or other designation selected by the Virginia Lottery in connection with any lottery, as the basis for determining the winner of a raffle.
1968	1964
1969	1965		29.5-206. Organizations exempt from certain fees and reports.
1970	1966
1971	1967		A. No organization that reasonably expects, on the basis of prior charitable gaming annual results or any other quantifiable method, to realize gross receipts of $40,000 or less in any 12-month period from raffles conducted in accordance with the provisions of this chapter shall be required to (i) notify the Commission of its intention to conduct raffles or (ii) comply with Board regulations governing raffles.
1972	1968
1973	1969		B. Any organization that reasonably expects, on the basis of prior charitable gaming annual results or any other quantifiable method, to realize gross receipts of $40,000 or less from all charitable gaming other than raffles on a total of no more than seven days per calendar year shall be required to register with the Commission pursuant to the provisions of 29.5-208.
1974	1970
1975	1971		C. If any organization's actual gross receipts from raffles for the 12-month period exceed $40,000 as described in subsection A or actual gross receipts from all charitable gaming other than raffles conducted on a total of no more than seven days per calendar year exceed $40,000 as described in subsection B, the Commission shall require the organization to obtain a permit pursuant to the provisions of 29.5-209 and file by a specified date the report required by 29.5-221.
1976	1972
1977	1973		D. Any (i) organization described in subdivision 18 of the definition of "organization" in 29.5-200 or (ii) volunteer fire department or volunteer emergency medical services agency or auxiliary unit thereof that has been recognized in accordance with 15.2-955 by an ordinance or resolution of the political subdivision where the volunteer fire department or volunteer emergency medical services agency is located as being part of the safety program of such political subdivision shall be exempt from the payment of application fees required by 29.5-209 and the payment of audit fees required by 29.5-223. Any such organization, department, agency, or unit that conducts electronic gaming shall be subject to such application fees and audit fees for its electronic gaming activities; however, in accordance with the provisions of 29.5-223, any audit fees may be paid by either the organization or the electronic gaming manufacturer whose electronic gaming devices are present on the premises of the organization, department, agency, or unit. Nothing in this subsection shall be construed as exempting any organizations described in subdivision 18 of the definition of "organization" in 29.5-200, volunteer fire departments, or volunteer emergency medical services agencies from any other provisions of this chapter or other Board regulations.
1978	1974
1979	1975		E. Nothing in this section shall prevent the Commission from conducting any investigation or audit it deems appropriate to ensure an organization's compliance with the provisions of this chapter and, to the extent applicable, Board regulations.
1980	1976
1981	1977		29.5-207. Eligibility for permit; exceptions; where valid.
1982	1978
1983	1979		A. To be eligible for a permit to conduct charitable gaming, an organization shall:
1984	1980
1985	1981		1. Have been in existence and met on a regular basis in the Commonwealth for a period of at least three years immediately prior to applying for a permit.
1986	1982
1987	1983		The three-year residency requirement shall not apply (i) to any lodge or chapter of a national or international fraternal order or of a national or international civic organization that is exempt under 501(c) of the United States Internal Revenue Code and that has a lodge or chapter holding a charitable gaming permit issued under the provisions of this chapter anywhere within the Commonwealth; (ii) to booster clubs that have been operating for less than three years and that have been established solely to raise funds for school-sponsored activities in public schools or private schools accredited pursuant to 22.1-19; (iii) to recently established volunteer fire and rescue companies or departments, after county, city, or town approval; or (iv) to an organization that relocates its meeting place on a permanent basis from one jurisdiction to another, complies with the requirements of subdivision 2, and was the holder of a valid permit at the time of its relocation.
1988	1984
1989	1985		2. Be operating currently and have always been operated as a nonprofit organization.
1990	1986
1991	1987		3. Have at least 50 percent of its membership consist of residents of the Commonwealth; however, if an organization (i) does not consist of bona fide members and (ii) is exempt under 501(c)(3) of the United States Internal Revenue Code, the Commission shall exempt such organization from the requirements of this subdivision.
1992	1988
1993	1989		B. Any organization whose gross receipts from all charitable gaming exceeds or can be expected to exceed $40,000 in any calendar year shall have been granted tax-exempt status pursuant to 501(c) of the United States Internal Revenue Code. At the same time tax-exempt status is sought from the Internal Revenue Service, the same documentation may be filed with the Commission in conjunction with an application for a charitable gaming permit. If such documentation is filed, the Commissioner may, after reviewing such documentation it deems necessary, issue a charitable gaming permit.
1994	1990
1995	1991		C. A permit shall be valid only for the dates and times designated in the permit.
1996	1992
1997	1993		29.5-208. Registration requirements; certain organizations.
1998	1994
1999	1995		A. Any organization seeking to conduct charitable gaming in accordance with subsection B of 29.5-206 shall first register with the Commission on a form prescribed by the Board. The Board shall only require the organization to provide (i) proof of the organization's nonprofit status; (ii) contact information for the chief executive officer of the organization or his designee; (iii) the location, dates, and times of any expected charitable gaming activity; (iv) a description of the general nature of the anticipated charitable gaming activity; and (v) a signed attestation that the organization (a) does not reasonably expect to realize more than $40,000 in gross receipts on a total of no more than seven days per calendar year for the charitable gaming activities listed on the registration form, (b) understands that should the organization exceed the $40,000 threshold, it will be required to file the report in accordance with 29.5-221, and (c) understands it shall be required to comply with the provisions of this chapter and Board regulations.
2000	1996
2001	1997		B. Any organization that registers with the Commission pursuant to this section is subject to random audits of its charitable gaming activities by the Commission and is subject to the penalties specified in 29.5-228 and 29.5-230 for gross violations of this chapter.
2002	1998
2003	1999		C. The Commissioner may deny, suspend, or revoke the registration of any organization found not to be in compliance with the provisions of this chapter and Board regulations. The action of the Commissioner in denying, suspending, or revoking any registration shall be subject to the Administrative Process Act ( 2.2-4000 et seq.).
2004	2000
2005	2001		D. Any person aggrieved by the denial, suspension, or revocation of a registration or any other action of the Commission may seek review of such action in accordance with Article 5 ( 2.2-4025 et seq.) of the Administrative Process Act.
2006	2002
2007	2003		29.5-209. Permit required; application fee; form of application.
2008	2004
2009	2005		A. Except as provided for in 29.5-206, prior to the commencement of any charitable game, an organization shall obtain a permit from the Commission.
2010	2006
2011	2007		B. All complete applications for a permit shall be acted upon by the Commissioner within 45 days from the filing thereof. Upon compliance by the applicant with the provisions of this chapter, and at the discretion of the Commissioner, a permit may be issued. All permits when issued shall be valid for the period specified in the permit unless it is sooner suspended or revoked. No permit shall be valid for longer than two years. The application shall be a matter of public record.
2012	2008
2013	2009		All permits shall be subject to regulation by the Board to ensure the public safety and welfare in the operation of charitable games. The permit shall only be granted after a reasonable investigation has been conducted by the Commission. The Commission may require any prospective employee, permit holder, or applicant to submit to fingerprinting and to provide personal descriptive information to be forwarded along with employee's, licensee's, or applicant's fingerprints through the Central Criminal Records Exchange to the Federal Bureau of Investigation for the purposes of obtaining criminal history record information regarding such prospective employee, permit holder, or applicant. The Central Criminal Records Exchange, upon receipt of a prospective employee, licensee, or applicant record or notification that no record exists, shall forward the report to the Commissioner or his designee, who shall belong to a governmental entity. However, nothing in this subsection shall be construed to require the routine fingerprinting of volunteer bingo workers.
2014	2010
2015	2011		C. In no case shall an organization receive more than one permit allowing it to conduct charitable gaming, except that an organization may also apply for and receive a temporary permit pursuant to 29.5-211.
2016	2012
2017	2013		D. Application for a charitable gaming permit shall be made on forms prescribed by the Board and shall be accompanied by payment of the fee for processing the application.
2018	2014
2019	2015		E. Applications for renewal of permits shall be made in accordance with Board regulations. If a complete renewal application is received 45 days or more prior to the expiration of the permit, the permit shall continue to be effective until such time as the Commissioner has taken final action. Otherwise, the permit shall expire at the end of its term.
2020	2016
2021	2017		F. The failure to meet any of the requirements of 29.5-207 shall cause the automatic denial of the permit, and no organization shall conduct any charitable gaming until the requirements are met and a permit is obtained.
2022	2018
2023	2019		29.5-210. Authorization to conduct electronic gaming required; fee.
2024	2020
2025	2021		A. In addition to a charitable gaming permit, a social organization shall receive authorization from the Commissioner prior to conducting any electronic gaming pursuant to the provisions of 29.5-215. A social organization may request such authorization from the Commissioner by providing certain information, as determined by the Board, on a form prescribed by the Board.
2026	2022
2027	2023		B. All requests for authorization to conduct electronic gaming shall be acted upon by the Commissioner within 45 days from the date of the request. A social organization that meets the necessary requirements pursuant to this chapter may be, at the discretion of the Commissioner, authorized to conduct electronic gaming pursuant to the provisions of 29.5-215. Any such authorization granted by the Commissioner shall be noted on the social organization's charitable gaming permit and shall be valid for the time specified in the permit unless it is sooner suspended or revoked. No authorization to conduct electronic gaming shall be valid for longer than two years. All requests received by the Commission shall be a matter of public record.
2028	2024
2029	2025		All authorizations to conduct electronic gaming shall be subject to regulation by the Board to ensure the public safety and welfare in the operation of electronic games. The authorization shall only be granted after a reasonable investigation has been conducted by the Commission.
2030	2026
2031	2027		C. In no case shall a social organization be authorized to conduct electronic gaming at more than one location.
2032	2028
2033	2029		D. Requests for authorization to conduct electronic gaming shall be made on forms prescribed by the Board and shall be accompanied by payment of a fee.
2034	2030
2035	2031		E. Requests for renewal of such authorizations shall be made in accordance with Board regulations. If a complete renewal request is received 45 days or more prior to the expiration of the authorization, the authorization shall continue to be effective until such time as the Commissioner has taken final action. Otherwise, the authorization shall expire at the end of its term.
2036	2032
2037	2033		29.5-211. Temporary permits authorized; limitations.
2038	2034
2039	2035		A. Any qualified organization described in subdivision 4 or 5 of the definition of "organization" in 29.5-200 may obtain a temporary permit from the Commissioner allowing such organization to sell instant bingo, pull tabs, or seal cards upon premises located anywhere in the Commonwealth during a convention, conference, or related event lasting no more than seven consecutive days held by such organization's affiliated state, regional, or national organization up to once per quarter as designated in the permit.
2040	2036
2041	2037		B. All complete applications for a permit shall be acted upon by the Commissioner within 45 days from the filing thereof. Upon compliance by the applicant with the provisions of this chapter, and at the discretion of the Commissioner, a temporary permit may be issued. All temporary permits when issued shall be valid for the period specified in the permit unless it is sooner suspended or revoked. No permit shall be valid for longer than one year. The application shall be a matter of public record.
2042	2038
2043	2039		All temporary permits shall be subject to regulation by the Board to ensure the public safety and welfare in the operation of charitable games. The temporary permit shall only be granted after a reasonable investigation has been conducted by the Commission. The Commission may require any prospective employee, permit holder, or applicant to submit to fingerprinting and to provide personal descriptive information to be forwarded along with the employee's, permit holder's, or applicant's fingerprints through the Central Criminal Records Exchange to the Federal Bureau of Investigation for the purposes of obtaining criminal history record information regarding such prospective employee, permit holder, or applicant. The Central Criminal Records Exchange, upon receipt of a prospective employee, permit holder, or applicant record or notification that no record exists, shall forward the report to the Commissioner or his designee, who shall belong to a governmental entity. However, nothing in this subsection shall be construed to require the routine fingerprinting of volunteer bingo workers.
2044	2040
2045	2041		C. In no case shall an organization receive more than one temporary permit allowing it to conduct charitable gaming; however, an organization may also receive a permit in accordance with the provisions of 29.5-209.
2046	2042
2047	2043		D. Application for a temporary permit shall be made on forms prescribed by the Board and shall be accompanied by payment of the fee for processing the application.
2048	2044
2049	2045		E. Applications for renewal of temporary permits shall be made in accordance with Board regulations. If a complete renewal application is received 45 days or more prior to the expiration of the temporary permit, the temporary permit shall continue to be effective until such time as the Commissioner has taken final action. Otherwise, the temporary permit shall expire at the end of its term.
2050	2046
2051	2047		F. The failure to meet any of the requirements of 29.5-207 shall cause the automatic denial of the temporary permit, and no organization shall conduct any charitable gaming in accordance with the provisions of subsection A until such requirements are met and a temporary permit is obtained.
2052	2048
2053	2049		29.5-212. Sale of raffle tickets; drawings.
2054	2050
2055	2051		A. Except as provided in subsection B, a qualified organization may sell raffle tickets both in and out of the jurisdiction designated in its permit and shall conduct the drawing within the Commonwealth.
2056	2052
2057	2053		B. A qualified organization may sell raffle tickets for a raffle drawing that will be held outside the Commonwealth, provided the raffle is conducted in accordance with (i) Board regulations and (ii) the laws and regulations of the jurisdiction in which the raffle drawing will be held.
2058	2054
2059	2055		C. Before a prize drawing, each stub or other detachable section of each ticket sold or won through some other authorized charitable game conducted by the same organization holding the raffle shall be placed into a receptacle from which the winning tickets are drawn. The receptacle shall be designed so that each ticket placed in it has an equal chance of being drawn.
2060	2056
2061	2057		29.5-213. Sale of instant bingo, pull tabs, or seal cards.
2062	2058
2063	2059		A. Except as provided in subsection D, instant bingo, pull tabs, or seal cards may be sold only (i) by a qualified organization, as defined in 29.5-200, (ii) upon premises that are owned or exclusively and entirely leased by the qualified organization or leased by the qualified organization pursuant to subsection C, and (iii) at such times that the premises in which the instant bingo, pull tabs, or seal cards are sold is open only to members and their guests via controlled access. Except as provided in subsections C and D, no organization may sell instant bingo, pull tabs, or seal cards (a) at a location outside of the county, city, or town in which the organization's principal office, as registered with the State Corporation Commission, is located or in an adjoining county, city, or town or (b) at an establishment that has been granted a license pursuant to Chapter 2 ( 4.1-200 et seq.) of Title 4.1 unless such license is held by the organization. Nothing in this chapter shall be construed to prohibit the conduct of games of chance involving the sale of pull tabs or seal cards, commonly known as last sale games, conducted in accordance with this section or, if such games are electronic games, in accordance with 29.5-215.
2064	2060
2065	2061		B. It is prohibited to use an electronic device to conduct instant bingo, pull tabs, or seal cards except as permitted under 29.5-215.
2066	2062
2067	2063		C. Notwithstanding the provisions of subsection A, a qualified organization may lease the premises of any social organization authorized pursuant to 29.5-215 for the purpose of selling instant bingo, pull tabs, or seal cards.
2068	2064
2069	2065		D. Notwithstanding the provisions of subsection A, instant bingo, pull tabs, or seal cards may be sold by a qualified organization that has received a temporary permit from the Commissioner pursuant to 29.5-211 upon premises located anywhere in the Commonwealth during a convention, conference, or related event lasting no more than seven consecutive days held by such organization's affiliated state, regional, or national organization up to once per quarter as designated in the temporary permit.
2070	2066
2071	2067		29.5-214. Sale of instant bingo, pull tabs, or seal cards dispensed by mechanical equipment.
2072	2068
2073	2069		As a part of its annual fundraising event, any qualified organization may sell instant bingo, pull tabs, or seal cards, provided that (i) any such instant bingo, pull tabs, or seal cards are dispensed by mechanical equipment only; (ii) the sale of the same is limited to a single event of no more than seven days per calendar year; (iii) any such event is open to the public; and (iv) no such organization realizes actual gross receipts of more than $40,000 from the conduct of all charitable gaming other than raffles on a total of no more than seven days per calendar year. Notwithstanding the provisions of 29.5-217, an organization authorized under this section shall not be required to sell such instant bingo, pull tabs, or seal cards at such times designated in the permit for regular bingo games or at a location at which the organization is authorized to conduct regular bingo games pursuant to subsections E and F of 29.5-216. If any organization's actual gross receipts from the sale of instant bingo, pull tabs, or seal cards pursuant to this section exceed $40,000, the Commission shall require the organization to obtain a permit pursuant to the provisions of 29.5-209 and file by a specified date the report required by 29.5-221. The Commission may require organizations authorized under this section to make such financial reporting as it deems necessary.
2074	2070
2075	2071		Nothing in this section shall be construed as exempting organizations authorized to sell instant bingo, pull tabs, or seal cards under this section from any other provisions of this chapter or other Board regulations.
2076	2072
2077	2073		29.5-215. Electronic gaming; penalty.
2078	2074
2079	2075		A. The Commissioner may authorize a social organization to conduct electronic gaming (i) within its social quarters and (ii) elsewhere on the premises of its primary location. Any such authorized social organization may lease its premises to any qualified organization for the purpose of conducting electronic gaming. A qualified organization that leases the premises of a social organization pursuant to this section shall be subject to the rules and regulations prescribed by the Board. No other electronic gaming shall be allowed under this chapter. Any person who conducts or participates in electronic gaming that is not authorized under this section shall be subject to the penalties specified in 29.5-230.
2080	2076
2081	2077		B. A social organization may request authorization from the Commissioner to conduct electronic gaming pursuant to this section in accordance with the procedures established under 29.5-204 and 29.5-209. Any fee charged by the Commission for the purpose of such authorization shall be in addition to any fee charged for a charitable gaming permit. Any charitable gaming permit that also authorizes a social organization to conduct electronic gaming shall identify the expiration date of such authorization and the number of electronic gaming devices authorized at the location.
2082	2078
2083	2079		C. A social organization and any qualified organization that leases the premises of a social organization pursuant to this section are prohibited from advertising any electronic gaming activities to the general public.
2084	2080
2085	2081		D. The Commission may authorize a maximum of 18 electronic gaming devices at a location. Each such device shall bear a mark indicating it has been authorized and approved by the Commission.
2086	2082
2087	2083		E. An electronic gaming manufacturer that has been issued a permit by the Commissioner in accordance with 29.5-225 shall report all electronic gaming adjusted gross receipts pursuant to the provisions of 29.5-222.
2088	2084
2089	2085		F. The use of electronic gaming devices utilizing multiple video monitors or touchscreens shall be limited to one player at a time.
2090	2086
2091	2087		G. No social organization or qualified organization leasing the premises of a social organization shall allow any individual younger than 21 years of age to participate in electronic gaming. No individual younger than 21 years of age shall participate in electronic gaming or otherwise use an electronic device to play or redeem any instant bingo, pull tabs, or seal cards.
2092	2088
2093	2089		H. No social organization or any qualified organization leasing the premises of a social organization shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards in payment of any charges or assessments for players to participate in electronic gaming.
2094	2090
2095	2091		29.5-216. Conduct of bingo games.
2096	2092
2097	2093		A. A qualified organization shall accept only cash or, at its option, checks or debit cards in payment of any charges or assessments for players to participate in bingo games. However, no such organization shall accept postdated checks in payment of any charges or assessments for players to participate in bingo games.
2098	2094
2099	2095		B. No qualified organization or any person on the premises shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards in payment of any charges or assessments for players to participate in bingo games.
2100	2096
2101	2097		C. Bingo games may be held by qualified organizations on any calendar day.
2102	2098
2103	2099		D. Qualified organizations may hold an unlimited number of bingo sessions on any calendar day.
2104	2100
2105	2101		E. Except as provided in subsection F, no organization may conduct bingo games (i) at a location outside of the county, city, or town in which its principal office, as registered with the State Corporation Commission, is located or in an adjoining county, city, or town or (ii) at an establishment that has been granted a license pursuant to Chapter 2 ( 4.1-200 et seq.) of Title 4.1 unless such license is held by the organization.
2106	2102
2107	2103		F. Notwithstanding the provisions of subsection E, a qualified organization may lease the premises of any social organization authorized pursuant to 29.5-215 for the purpose of conducting bingo games.
2108	2104
2109	2105		29.5-217. Conduct of instant bingo, network bingo, pull tabs, and seal cards.
2110	2106
2111	2107		A. Any organization qualified to conduct bingo games pursuant to the provisions of this chapter may also play instant bingo, network bingo, pull tabs, or seal cards; however, such games shall be played only at such times designated in the permit for regular bingo games and only at locations at which the organization is authorized to conduct regular bingo games pursuant to subsections E and F of 29.5-216, except that a qualified organization that is issued a temporary permit pursuant to 29.5-211 shall be authorized to play instant bingo, pull tabs, or seal cards in accordance with subsection D of 29.5-213. It is prohibited to use an electronic device to conduct instant bingo, pull tabs, or seal cards except as permitted under 29.5-215.
2112	2108
2113	2109		B. Any organization conducting instant bingo, network bingo, pull tabs, or seal cards shall maintain a record of the date, quantity, and card value of instant bingo supplies purchased as well as the name and address of the supplier of such supplies. The organization shall also maintain a written invoice or receipt from a nonmember of the organization verifying any information required by this subsection. Such supplies shall be paid for only by check drawn on the gaming account of the organization. A complete inventory of all such gaming supplies shall be maintained by the organization on the premises where the gaming is being conducted.
2114	2110
2115	2111		C. No qualified organization shall sell any instant bingo, network bingo, pull tabs, or seal cards to any individual younger than 18 years of age. No individual younger than 18 years of age shall play or redeem any instant bingo, network bingo, pull tabs, or seal cards.
2116	2112
2117	2113		D. No qualified organization or any person on the premises shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards in payment of any charges or assessments for players to participate in instant bingo, network bingo, pull tabs, or seal cards.
2118	2114
2119	2115		29.5-218. Conduct of network bingo.
2120	2116
2121	2117		A. Any organization qualified to conduct bingo games pursuant to the provisions of this chapter may also sell network bingo cards; however, network bingo shall be sold only at such times designated in the permit for regular bingo games and only at locations at which the organization is authorized to conduct regular bingo games pursuant to subsections E and F of 29.5-216.
2122	2118
2123	2119		B. Any organization selling network bingo cards shall maintain a record of the date and quantity of network bingo cards purchased from a licensed network bingo provider. The organization shall also maintain a written invoice or receipt from a licensed supplier verifying any information required by this subsection. Such supplies shall be paid for only by check drawn on the gaming account of the organization or by electronic fund transfer. A complete inventory of all such gaming supplies shall be maintained by the organization on the premises where network bingo cards are sold.
2124	2120
2125	2121		C. No qualified organization shall sell any network bingo cards to any individual younger than 18 years of age. No individual younger than 18 years of age shall play or redeem any network bingo cards.
2126	2122
2127	2123		D. A qualified organization shall accept only cash or, at its option, checks or debit cards in payment of any charges or assessments for players to participate in any network bingo game. However, no such organization shall accept postdated checks in payment of any charges or assessments for players to participate in network bingo games.
2128	2124
2129	2125		E. No qualified organization or any person on the premises shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards in payment of any charges or assessments for players to participate in network bingo games.
2130	2126
2131	2127		F. No qualified organization shall conduct network bingo more frequently than one day in any calendar week, which shall not be the same day of each week.
2132	2128
2133	2129		G. No qualified organization shall sell network bingo cards on the Internet or other online service or allow the play of network bingo on the Internet or other online service. However, the location where network bingo games are conducted shall be equipped with a video monitor, television, or video screen, or any other similar means of visually displaying a broadcast or signal, that relays live, real-time video of the numbers as they are called by a live caller. The Internet or other online service may be used to relay information about winning players.
2134	2130
2135	2131		H. Qualified organizations may award network bingo prizes on a graduated scale; however, no single network bingo prize shall exceed $25,000.
2136	2132
2137	2133		I. Nothing in this section shall be construed to prohibit an organization from participating in more than one network bingo network.
2138	2134
2139	2135		29.5-219. Conduct of Texas Hold'em poker tournaments by qualified organizations; limitation of operator fee; conditions.
2140	2136
2141	2137		A. Any organization qualified to conduct bingo games on or after July 1, 2019, may conduct Texas Hold'em poker tournaments; however, no such organization may conduct individual Texas Hold'em poker games. The Board shall promulgate regulations establishing circumstances under which organizations qualified to conduct bingo games prior to July 1, 2019, may conduct Texas Hold'em poker tournaments.
2142	2138
2143	2139		B. A qualified organization may contract with an operator to administer Texas Hold'em poker tournaments. Limitations on operator fees shall be established by Board regulations.
2144	2140
2145	2141		C. A qualified organization shall accept only cash or, at its option, checks in payment of any charges or assessments for players to participate in Texas Hold'em poker tournaments. However, no such organization shall accept postdated checks in payment of any charges or assessments for players to participate in Texas Hold'em poker tournaments.
2146	2142
2147	2143		D. No qualified organization or any person on the premises shall extend lines of credit or accept any credit or debit card or other electronic fund transfer in payment of any charges or assessments for players to participate in Texas Hold'em poker tournaments.
2148	2144
2149	2145		E. No qualified organization shall allow any individual younger than 18 years of age to participate in Texas Hold'em poker tournaments.
2150	2146
2151	2147		29.5-220. Joint operation of bingo games; written reports; joint permit required.
2152	2148
2153	2149		A. Any two or more qualified organizations may jointly organize and conduct bingo games provided both have fully complied with all other provisions of this chapter.
2154	2150
2155	2151		B. Any two or more qualified organizations jointly conducting such games shall be (i) subject to the same restrictions and prohibitions contained in this chapter that would apply to a single organization conducting bingo games and (ii) required to furnish to the Commission a written report setting forth the location where such games will be held and the division of manpower, costs, and proceeds for each game to be jointly conducted.
2156	2152
2157	2153		Upon a finding that the division of manpower and costs for each game bears a reasonable relationship to the division of proceeds, the Commissioner shall issue a joint permit.
2158	2154
2159	2155		C. No bingo game shall be jointly conducted until the joint permit issued pursuant to subsection B is obtained by the organizations.
2160	2156
2161	2157		29.5-221. Reports of gross receipts, electronic gaming adjusted gross receipts, and disbursements required; form of reports; failure to file.
2162	2158
2163	2159		A. 1. Each qualified organization shall keep a complete record of all:
2164	2160
2165	2161		a. Inventory of charitable gaming supplies purchased.
2166	2162
2167	2163		b. Receipts from its charitable gaming operation, including a breakdown of receipts attributable to each type of game offered.
2168	2164
2169	2165		c. Electronic gaming adjusted gross receipts.
2170	2166
2171	2167		d. Disbursements related to charitable gaming and electronic gaming operations, including a breakdown of disbursements for each purpose specified in subdivision 1 of 29.5-224.
2172	2168
2173	2169		2. Except as provided in 29.5-206 and 29.5-222, each qualified organization shall file under penalty of perjury and at least annually, on a form prescribed by the Board, a report of all receipts and disbursements specified in subdivision 1, the amount of money on hand attributable to charitable gaming as of the end of the period covered by the report, and any other information related to its charitable gaming operation that the Commission may require. In addition, the Board, by regulation, may require any qualified organization, except any qualified organization that realizes annual gross receipts of $40,000 or less, whose net receipts exceed a specified amount during any three-month period to file a report of its receipts and disbursements for such period. All reports filed pursuant to this section shall be a matter of public record.
2174	2170
2175	2171		B. All reports required by this section shall be filed on or before the date prescribed by the Commissioner. The Board, by regulation, shall establish a schedule of late fees to be assessed for any organization that fails to submit required reports by the due date.
2176	2172
2177	2173		C. Except as provided in 29.5-206, each qualified organization shall designate or compensate an outside individual or group who shall be responsible for filing an annual, and, if required, quarterly, financial report if the organization goes out of business or otherwise ceases to conduct charitable gaming activities. The Commission shall require such reports as it deems necessary until all proceeds of any charitable gaming have been used for the purposes specified in 29.5-203 or have been disbursed in a manner approved by the Commission.
2178	2174
2179	2175		D. Each qualified organization shall maintain for three years a complete written record of (i) all charitable gaming sessions using Board-prescribed forms or reasonable facsimiles thereof approved by the Commission; (ii) the name and address of each individual to whom is awarded any charitable gaming prize or jackpot that meets or exceeds the requirements of Internal Revenue Service Publication 3079, as well as the amount of the award; and (iii) an itemized record of all receipts and disbursements, including operating costs and use of proceeds incurred in operating bingo games.
2180	2176
2181	2177		E. The failure to file reports within 30 days of the time such reports are due shall cause the automatic revocation of the permit, and no organization shall conduct any bingo game or raffle thereafter until the report is properly filed and a new permit is obtained. However, the Commissioner may grant an extension of time for filing such reports for a period not to exceed 45 days if requested by an organization, provided the organization requests an extension within 15 days of the time such reports are due and all projected fees are paid. For the term of any such extension, the organization's permit shall not be automatically revoked, such organization may continue to conduct charitable gaming, or electronic gaming if authorized to do so pursuant to the provisions of this chapter, and no new permit shall be required.
2182	2178
2183	2179		F. For purposes of this section, the requirement to file a report shall also include the payment of any applicable fees required to accompany such report.
2184	2180
2185	2181		29.5-222. Reports of electronic gaming adjusted gross receipts by electronic gaming manufacturer required; form of reports; failure to file.
2186	2182
2187	2183		A. Each electronic gaming manufacturer that holds a permit issued by the Commissioner pursuant to 29.5-225 shall keep a complete record of all electronic gaming adjusted gross receipts and shall file at least annually, on a form prescribed by the Board, a report of all such receipts and any other information related to the manufacture of electronic gaming devices that the Commission may require.
2188	2184
2189	2185		B. The report required by this section shall be filed on or before the date prescribed by the Commission. The Board, by regulation, shall establish a schedule of late fees to be assessed for any electronic gaming manufacturer that fails to submit required reports by the due date.
2190	2186
2191	2187		C. Each electronic gaming manufacturer shall maintain for three years a complete written record of all electronic gaming adjusted gross receipts.
2192	2188
2193	2189		D. The failure to file the report required by this section within 30 days of the time such report is due shall cause the automatic revocation of the electronic gaming manufacturer's permit, and no such manufacturer shall manufacture any new electronic gaming device until the report is properly filed and a new permit is obtained. However, the Commissioner may grant an extension of time for filing such report for a period not to exceed 45 days if requested by a manufacturer, provided that the manufacturer requests an extension within 15 days of the time such report is due and all projected fees are paid. For the term of any such extension, the manufacturer's permit shall not be automatically revoked, such manufacturer may continue to manufacture electronic gaming devices, and no new permit shall be required.
2194	2190
2195	2191		E. For purposes of this section, the requirement to file a report shall also include the payment of any applicable fees required to accompany such report.
2196	2192
2197	2193		29.5-223. Audit of reports; exemption; audit and administration fee; additional assessment of gross receipts and electronic gaming adjusted gross receipts.
2198	2194
2199	2195		A. All reports filed pursuant to 29.5-221 and 29.5-222 shall be subject to audit by the Commission in accordance with Board regulations. The Commission may engage the services of independent certified public accountants to perform any audits deemed necessary to fulfill the Commission's responsibilities under this chapter.
2200	2196
2201	2197		B. The Commission shall prescribe a reasonable audit and administration fee to be paid by (i) any organization conducting charitable gaming under a permit issued by the Commissioner unless the organization is exempt from such fee pursuant to 29.5-206 or (ii) any electronic gaming manufacturer that holds a permit issued by the Commissioner pursuant to 29.5-225. Such fee shall not exceed one-half of one percent of the gross receipts that an organization reports pursuant to 29.5-221 or one-half of one percent of the electronic gaming adjusted gross receipts that an electronic gaming manufacturer reports pursuant to 29.5-222. The audit and administration fee shall accompany each report for each calendar quarter.
2202	2198
2203	2199		C. The audit and administration fee shall be payable to the Treasurer of Virginia. All such fees received by the Treasurer of Virginia shall be separately accounted for and shall be used only by the Commissioner for the purposes of auditing and regulating charitable gaming.
2204	2200
2205	2201		D. In addition to the fee imposed under subsection B, an additional fee of (i) one-quarter of one percent of the gross receipts that an organization reports pursuant to 29.5-221 shall be paid by the organization or (ii) one-quarter of one percent of the electronic gaming adjusted gross receipts that an electronic gaming manufacturer reports pursuant to 29.5-222 shall be paid by the electronic gaming manufacturer to the Treasurer of Virginia. All such amounts shall be collected and deposited in the same manner as prescribed in subsections B and C and shall be used for the same purposes.
2206	2202
2207	2203		29.5-224. Prohibited practices.
2208	2204
2209	2205		In addition to those other practices prohibited by this chapter, the following acts or practices are prohibited:
2210	2206
2211	2207		1. No part of the gross receipts or electronic gaming adjusted gross receipts derived by a qualified organization may be used for any purpose other than (i) gaming expenses; (ii) reasonable and proper business expenses; and (iii) those lawful religious, charitable, community, or educational purposes for which the organization is specifically chartered or organized.
2212	2208
2213	2209		2. Except as provided in 29.5-226, no qualified organization shall enter into a contract with or otherwise employ for compensation any person for the purpose of organizing, managing, or conducting any charitable games. However, organizations composed of or for deaf or blind persons may use a part of their gross receipts for costs associated with providing clerical assistance in the management and operation but not the conduct of charitable gaming.
2214	2210
2215	2211		The provisions of this subdivision shall not prohibit the joint operation of bingo games held in accordance with 29.5-220.
2216	2212
2217	2213		3. No person shall pay or receive for use of any premises wholly devoted to the conduct of any charitable games any consideration in excess of the current fair market rental value of such property. Fair market rental value consideration shall not be based upon or determined by reference to a percentage of the proceeds derived from the operation of any charitable games or to the number of people in attendance at such charitable games.
2218	2214
2219	2215		4. No person shall participate in the management or operation of any charitable game unless such person is and, for a period of at least 30 days immediately preceding such participation, has been a bona fide member of the organization. For any organization that is not composed of members, a person who is not a bona fide member may volunteer in the conduct of a charitable game as long as that person is directly supervised by a bona fide official member of the organization.
2220	2216
2221	2217		The provisions of this subdivision shall not apply to (i) persons employed as clerical assistants by qualified organizations composed of or for deaf or blind persons; (ii) employees of a corporate sponsor of a qualified organization, provided such employees' participation is limited to the management, operation, or conduct of no more than one raffle per year; (iii) the spouse or family member of any such bona fide member of a qualified organization, provided at least one bona fide member is present; or (iv) persons employed by a qualified organization authorized to sell pull tabs or seal cards in accordance with 29.5-200, provided (a) such sales are conducted by no more than two on-duty employees and (b) such employees receive no compensation for or based on the sale of the pull tabs or seal cards.
2222	2218
2223	2219		5. No person shall receive any remuneration for participating in the management, operation, or conduct of any charitable game, except that:
2224	2220
2225	2221		a. Persons employed by organizations composed of or for deaf or blind persons may receive remuneration not to exceed $30 per event for providing clerical assistance in the management and operation but not the conduct of charitable games only for such organizations;
2226	2222
2227	2223		b. Persons under the age of 19 who sell raffle tickets for a qualified organization to raise funds for youth activities in which they participate may receive nonmonetary incentive awards or prizes from the organization;
2228	2224
2229	2225		c. Remuneration may be paid to off-duty law-enforcement officers from the jurisdiction in which such bingo games are played for providing uniformed security for such bingo games even if such officer is a member of the sponsoring organization, provided the remuneration paid to such member is in accordance with off-duty law-enforcement personnel work policies approved by the local law-enforcement official and further provided that such member is not otherwise engaged in the management, operation, or conduct of the bingo games of that organization, or to private security services businesses licensed pursuant to 9.1-139 providing uniformed security for such bingo games, provided that employees of such businesses shall not otherwise be involved in the management, operation, or conduct of the bingo games of that organization;
2230	2226
2231	2227		d. A member of a qualified organization lawfully participating in the management, operation, or conduct of a bingo game may be provided food and nonalcoholic beverages by such organization for on-premises consumption during the bingo game, provided the food and beverages are provided in accordance with Board regulations;
2232	2228
2233	2229		e. Remuneration may be paid to bingo managers or callers who have a current registration certificate issued by the Commissioner in accordance with 29.5-226, or who are exempt from such registration requirement. Such remuneration shall not exceed $100 per session; and
2234	2230
2235	2231		f. Volunteers of a qualified organization may be reimbursed for their reasonable and necessary travel expenses, not to exceed $50 per session.
2236	2232
2237	2233		6. No landlord shall, at bingo games conducted on the landlord's premises, (i) participate in the conduct, management, or operation of any bingo games; (ii) sell, lease, or otherwise provide for consideration any bingo supplies, including bingo cards, instant bingo cards, or other game pieces; or (iii) require as a condition of the lease or by contract that a particular manufacturer, distributor, or supplier of bingo supplies or equipment be used by the organization.
2238	2234
2239	2235		The provisions of this subdivision shall not apply to any qualified organization conducting bingo games on its own behalf at premises owned by it.
2240	2236
2241	2237		7. No qualified organization shall enter into any contract with or otherwise employ or compensate any member of the organization on account of the sale of bingo supplies or equipment.
2242	2238
2243	2239		8. No organization shall award any bingo prize money or any merchandise valued in excess of the following amounts:
2244	2240
2245	2241		a. No bingo door prize shall exceed $250 for a single door prize or $500 in cumulative door prizes in any one session;
2246	2242
2247	2243		b. No regular bingo or special bingo game prize shall exceed $100. However, up to 10 games per bingo session may feature a regular bingo or special bingo game prize of up to $200;
2248	2244
2249	2245		c. No instant bingo, pull tab, or seal card prize for a single card shall exceed $2,000;
2250	2246
2251	2247		d. Except as provided in this subdivision 8, no bingo jackpot of any nature whatsoever shall exceed $1,000, nor shall the total amount of bingo jackpot prizes awarded in any one session exceed $1,000. Proceeds from the sale of bingo cards and the sheets used for bingo jackpot games shall be accounted for separately from the bingo cards or sheets used for any other bingo games; and
2252	2248
2253	2249		e. No single network bingo prize shall exceed $25,000. Proceeds from the sale of network bingo cards shall be accounted for separately from bingo cards and sheets used for any other bingo game.
2254	2250
2255	2251		9. The provisions of subdivision 8 shall not apply to any progressive bingo game, in which (i) a regular or special prize, not to exceed $100, is awarded on the basis of predetermined numbers or patterns selected at random and (ii) a progressive prize, not to exceed $500 for the initial progressive prize and $5,000 for the maximum progressive prize, is awarded if the predetermined numbers or patterns are covered when a certain number of numbers is called, provided that (a) there are no more than six such games per session per organization, (b) the amount of increase of the progressive prize per session is no more than $200, (c) the bingo cards or sheets used in such games are sold separately from the bingo cards or sheets used for any other bingo games, (d) the organization separately accounts for the proceeds from such sale, and (e) such games are otherwise operated in accordance with the Commission's rules of play.
2256	2252
2257	2253		10. No organization shall award any raffle prize valued at more than $100,000.
2258	2254
2259	2255		The provisions of this subdivision shall not apply to a raffle conducted no more than three times per calendar year by a qualified organization qualified as a tax-exempt organization pursuant to 501(c) of the Internal Revenue Code for a prize consisting of a lot improved by a residential dwelling where 100 percent of the moneys received from such a raffle, less deductions for the fair market value for the cost of acquisition of the land and materials, are donated to lawful religious, charitable, community, or educational organizations specifically chartered or organized under the laws of the Commonwealth and qualified as a 501(c) tax-exempt organization. No more than one such raffle shall be conducted in any one geographical region of the Commonwealth.
2260	2256
2261	2257		11. No qualified organization composed of or for deaf or blind persons that employs a person not a member to provide clerical assistance in the management and operation but not the conduct of any charitable games shall conduct such games unless it has in force fidelity insurance, as defined in 38.2-120, written by an insurer licensed to do business in the Commonwealth.
2262	2258
2263	2259		12. No person shall participate in the management or operation of any charitable game if he has ever been convicted of any felony or if he has been convicted of any misdemeanor involving fraud, theft, or financial crimes within the preceding five years. No person shall participate in the conduct of any charitable game if, within the preceding 10 years, he has been convicted of any felony or if, within the preceding five years, he has been convicted of any misdemeanor involving fraud, theft, or financial crimes. In addition, no person shall participate in the management, operation, or conduct of any charitable game if that person, within the preceding five years, has participated in the management, operation, or conduct of any charitable game that was found by the Commission or a court of competent jurisdiction to have been operated in violation of state law, local ordinance, or Board regulation.
2264	2260
2265	2261		13. Qualified organizations jointly conducting bingo games pursuant to 29.5-220 shall not circumvent any restrictions and prohibitions that would otherwise apply if a single organization were conducting such games. These restrictions and prohibitions shall include the frequency with which bingo games may be held, the value of merchandise or money awarded as prizes, or any other practice prohibited under this section.
2266	2262
2267	2263		14. A qualified organization shall not purchase any charitable gaming supplies for use in the Commonwealth from any person who is not currently registered with the Commission as a supplier pursuant to 29.5-225.
2268	2264
2269	2265		15. Unless otherwise permitted in this chapter, no part of an organization's charitable gaming gross receipts shall be used for an organization's social or recreational activities.
2270	2266
2271	2267		16. No organization qualified to conduct Texas Hold'em poker tournaments pursuant to 29.5-219 shall conduct any Texas Hold'em poker games where the game has no predetermined end time and the players wager actual money or poker chips that have cash value.
2272	2268
2273	2269		29.5-225. Suppliers of charitable gaming supplies; manufacturers of electronic gaming devices; permit; qualification; suspension, revocation, or refusal to renew certificate; maintenance, production, and release of records.
2274	2270
2275	2271		A. No person shall offer to sell, sell, or otherwise provide charitable gaming supplies to any qualified organization and no manufacturer shall distribute electronic gaming devices for charitable gaming in the Commonwealth unless and until such person has made application for and has been issued a permit by the Commissioner. An application for permit shall be made on forms prescribed by the Board and shall be accompanied by a fee in the amount of $1,000. Each permit shall remain valid for a period of one year from the date of issuance. Application for renewal of a permit shall be accompanied by a fee in the amount of $1,000 and shall be made on forms prescribed by the Board.
2276	2272
2277	2273		B. The Board shall have authority to prescribe by regulation reasonable criteria consistent with the provisions of this chapter for the registration of suppliers and manufacturers of electronic gaming devices for charitable gaming. The Commissioner shall refuse to issue a permit to any supplier or manufacturer who has, or who has any officer, director, partner, or owner who has, (i) been convicted of or pleaded nolo contendere to a felony in any state or federal court or has been convicted of any offense that, if committed in the Commonwealth, would be a felony; (ii) been convicted of or pleaded nolo contendere to a crime involving gambling; (iii) violated the gaming laws of any jurisdiction within the last five years, including violations for failure to register; or (iv) had any license, permit, certificate, or other authority related to charitable gaming suspended or revoked in the Commonwealth or in any other jurisdiction within the last five years. The Commissioner may refuse to issue a permit to any supplier or manufacturer who has, or who has any officer, director, partner, or owner who has, (a) failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth or (b) failed to establish a registered office or registered agent in the Commonwealth if so required by 13.1-634 or 13.1-763.
2278	2274
2279	2275		C. The Commissioner shall suspend, revoke, or refuse to renew the permit of any supplier or manufacturer for any conduct described in clause (i), (ii), (iii), or (iv) of subsection B. The Commissioner shall suspend, revoke, or refuse to renew the permit of any supplier or manufacturer for any conduct described in clause (a) or (b) of subsection B or for any violation of this chapter or regulation of the Board. Before taking any such action, the Commissioner shall give the supplier or manufacturer a written statement of the grounds upon which he proposes to take such action and an opportunity to be heard. Every hearing in a contested case shall be conducted in accordance with the Administrative Process Act ( 2.2-4000 et seq.).
2280	2276
2281	2277		D. Each supplier shall document each sale of charitable gaming supplies, including electronic gaming devices, and other items incidental to the conduct of charitable gaming, such as markers, wands, or tape, to a qualified organization on an invoice that clearly shows (i) the name and address of the qualified organization to which such supplies or items were sold; (ii) the date of the sale; (iii) the name or form and serial number of each deal of instant bingo cards and pull-tab raffle cards, the quantity of deals sold, and the price per deal paid by the qualified organization; (iv) the serial number of the top sheet in each packet of bingo paper, the serial number for each series of uncollated bingo paper, and the cut, color, and quantity of bingo paper sold; and (v) any other information with respect to charitable gaming supplies, including electronic gaming devices, or other items incidental to the conduct of charitable gaming as the Board may prescribe by regulation. A legible copy of the invoice shall accompany the charitable gaming supplies when delivered to the qualified organization.
2282	2278
2283	2279		Each manufacturer of electronic gaming devices shall document each distribution of such devices to a qualified organization or supplier on an invoice that clearly shows (a) the name and address of the qualified organization or supplier to which such systems were distributed; (b) the date of distribution; (c) the serial number of each such device; and (d) any other information with respect to electronic gaming devices as the Board may prescribe by regulation. A legible copy of the invoice shall accompany the electronic gaming devices when delivered to the qualified organization or supplier.
2284	2280
2285	2281		E. Each supplier and manufacturer shall maintain a legible copy of each invoice required by subsection D for a period of three years from the date of sale. Each supplier and manufacturer shall make such documents immediately available for inspection and copying to any agent or employee of the Commission upon request made during normal business hours. This subsection shall not limit the right of the Commission to require the production of any other documents in the possession of the supplier or manufacturer that relate to its transactions with qualified organizations. All documents and other information of a proprietary nature furnished to the Commission in accordance with this subsection shall not be a matter of public record and shall be exempt from disclosure under the provisions of the Virginia Freedom of Information Act ( 2.2-3700 et seq.).
2286	2282
2287	2283		F. Each supplier and manufacturer shall provide to the Commission the results of background checks and any other records or documents necessary for the Commission to enforce the provisions of subsections B and C.
2288	2284
2289	2285		29.5-226. Bingo managers and callers; remuneration; registration; qualification; suspension, revocation, or refusal to renew certificate; exceptions.
2290	2286
2291	2287		A. No person shall receive remuneration as a bingo manager or caller from any qualified organization unless and until such person has made application for and has been issued a registration certificate by the Commissioner. Application for registration shall be made on forms prescribed by the Board and shall be accompanied by a fee in the amount of $75. Each registration certificate shall remain valid for a period of one year from the date of issuance. Application for renewal of a registration certificate shall be accompanied by a fee in the amount of $75 and shall be made on forms prescribed by the Board.
2292	2288
2293	2289		B. As a condition of registration as a bingo manager, the applicant shall (i) have been a bona fide member of the qualified organization for at least 12 consecutive months prior to making application for registration and (ii) be required to complete a reasonable training course developed and conducted by the Board.
2294	2290
2295	2291		As a condition of registration as a bingo caller, the applicant shall be required to complete a reasonable training course developed and conducted by the Board.
2296	2292
2297	2293		The Commissioner may refuse to register any bingo manager or caller who has (a) been convicted of or pleaded nolo contendere to a felony in any state or federal court or has been convicted of any offense that, if committed in the Commonwealth, would be a felony; (b) been convicted of or pleaded nolo contendere to a crime involving gambling; (c) had any license, permit, certificate, or other authority related to activities defined as charitable gaming in the Commonwealth suspended or revoked in the Commonwealth or in any other jurisdiction; or (d) failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth.
2298	2294
2299	2295		C. The Commissioner may suspend, revoke, or refuse to renew the registration certificate of any bingo manager or caller for any conduct described in subsection B or for any violation of this chapter or Board regulations. Before taking any such action, the Commissioner shall give the bingo manager or caller a written statement of the grounds upon which he proposes to take such action and an opportunity to be heard. Every hearing in a contested case shall be conducted in accordance with the Administrative Process Act ( 2.2-4000 et seq.).
2300	2296
2301	2297		D. The provisions of subsection A requiring registration for bingo callers with the Commission shall not apply to a bingo caller for a volunteer fire department or volunteer emergency medical services agency or auxiliary unit thereof that has been recognized in accordance with 15.2-955 by an ordinance or resolution of the political subdivision where the volunteer fire department or volunteer emergency medical services agency is located as being a part of the safety program of such political subdivision.
2302	2298
2303	2299		29.5-227. Licensing of network bingo providers; qualification; suspension, revocation, or refusal to renew license; maintenance, production, and release of records.
2304	2300
2305	2301		A. No person shall sell or offer to sell or otherwise provide access to a network bingo network to any qualified organization unless and until such person has made application for and has been issued a license by the Commissioner. An application for license shall be made on forms prescribed by the Board and shall be accompanied by a fee in the amount of $500. Each license shall remain valid for a period of two years from the date of issuance. Application for renewal of a license shall be accompanied by a fee in the amount of $500 and shall be made on forms prescribed by the Board.
2306	2302
2307	2303		B. The Board shall have authority to prescribe by regulation reasonable criteria consistent with the provisions of this chapter for the licensure of network bingo providers. The Commissioner may refuse to issue a license to any network bingo provider that has any officer, director, partner, or owner who has (i) been convicted of or pleaded nolo contendere to a felony in any state or federal court or has been convicted of any offense that, if committed in the Commonwealth, would be a felony; (ii) been convicted of or pleaded nolo contendere to a crime involving gambling; (iii) had any license, permit, certificate, or other authority related to activities defined as charitable gaming in the Commonwealth suspended or revoked in the Commonwealth or in any other jurisdiction; (iv) failed to file or been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth; or (v) failed to establish a registered office or registered agent in the Commonwealth if so required by 13.1-634 or 13.1-763.
2308	2304
2309	2305		C. The Commissioner may suspend, revoke, or refuse to renew the license of any network bingo provider for any conduct described in subsection B or for any violation of this chapter or regulation of the Board. Before taking any such action, the Commissioner shall give the network bingo provider a written statement of the grounds upon which he proposes to take such action and an opportunity to be heard. Every hearing in a contested case shall be conducted in accordance with the Administrative Process Act ( 2.2-4000 et seq.).
2310	2306
2311	2307		D. The Board by regulation shall require network bingo providers to have onsite independent supervision of network bingo games as the numbers are called.
2312	2308
2313	2309		E. Each network bingo provider shall document each sale of network bingo supplies and other items incidental to the conduct of network bingo to a qualified organization on an invoice that clearly shows (i) the name and address of the qualified organization to which such supplies or items were sold; (ii) the date of the sale; (iii) the name or form and serial number of each network bingo card, the quantity of cards sold, and the price per card paid by the qualified organization; and (iv) any other information required by the Commission. A legible copy of the invoice shall accompany the network bingo supplies when delivered to the qualified organization.
2314	2310
2315	2311		F. Each network bingo provider shall maintain a legible copy of each invoice required by subsection E for a period of three years from the date of sale. Each network bingo provider shall make such documents immediately available for inspection and copying to any agent or employee of the Commission upon request made during normal business hours. This subsection shall not limit the right of the Commission to require the production of any other documents in the possession of the network bingo provider that relate to its transactions with qualified organizations. All documents and other information of a proprietary nature furnished to the Commission in accordance with this subsection shall be exempt from disclosure under the provisions of the Virginia Freedom of Information Act ( 2.2-3700 et seq.).
2316	2312
2317	2313		29.5-228. Suspension of permit and registration.
2318	2314
2319	2315		A. When any officer charged with the enforcement of the charitable gaming laws of the Commonwealth has reasonable cause to believe that the conduct of charitable gaming is being conducted by an organization in violation of this chapter or Board regulations, he may apply to any judge, magistrate, or other person having authority to issue criminal warrants for the immediate suspension of the permit or registration of the organization conducting charitable gaming. If the judge, magistrate, or person to whom such application is presented is satisfied that probable cause exists to suspend the permit or registration, he shall suspend the permit or registration. Immediately upon such suspension, the officer shall notify the organization in writing of such suspension.
2320	2316
2321	2317		B. Written notice specifying the particular basis for the immediate suspension shall be provided by the officer to the organization within one business day of the suspension and a hearing held thereon by the Commission or its designated hearing officer within 10 days of the suspension unless the organization consents to a later date. No charitable gaming shall be conducted by the organization until the suspension has been lifted by the Commission or a court of competent jurisdiction.
2322	2318
2323	2319		29.5-229. Civil penalty.
2324	2320
2325	2321		A. Any person or organization, whether permitted or qualified pursuant to this chapter or not, that (i) conducts charitable gaming without first obtaining a permit to do so, (ii) continues to conduct such games after revocation or suspension of such permit, or (iii) otherwise violates any provision of this chapter shall, in addition to any other penalties provided, be subject to a civil penalty of not less than $25,000 and not more than $50,000 per incident. Any civil penalties collected pursuant to this section shall be payable to the State Treasurer for remittance to the Commission.
2326	2322
2327	2323		B. Any electronic gaming manufacturer, whether permitted pursuant to this chapter or not, shall, in addition to any other penalties provided, be subject to the penalty identified in subsection A for any violation of any provision of this chapter.
2328	2324
2329	2325		29.5-230. Criminal penalties.
2330	2326
2331	2327		A. Any person who violates the provisions of this chapter or who willfully and knowingly files, or causes to be filed, a false application, report, or other document or who willfully and knowingly makes a false statement, or causes a false statement to be made, on any application, report, or other document required to be filed with or made to the Commission is guilty of a Class 1 misdemeanor.
2332	2328
2333	2329		B. Each day in violation of this section shall constitute a separate offense.
2334	2330
2335	2331		C. Any person who converts funds derived from any charitable gaming to his own or another's use, when the amount of funds is less than $1,000, is guilty of petit larceny and, when the amount of funds is $1,000 or more, is guilty of grand larceny. The provisions of this section shall not preclude the applicability of any other provision of the criminal law of the Commonwealth that may apply to any course of conduct that violates this section.
2336	2332
2337	2333		CHAPTER 3.
2338	2334
2339	2335		CASINO GAMING.
2340	2336
2341	2337		Article 1.
2342	2338
2343	2339		General Provisions.
2344	2340
2345	2341		29.5-300. Definitions.
2346	2342
2347	2343		As used in this chapter, unless the context requires a different meaning:
2348	2344
2349	2345		"Adjusted gross receipts" means the gross receipts from casino gaming less winnings paid to winners.
2350	2346
2351	2347		"Casino gaming" or "game" means baccarat, blackjack, twenty-one, poker, craps, dice, slot machines, roulette wheels, Klondike tables, Mah Jongg, electronic table games, hybrid table games, punchboards, faro layouts, numbers tickets, push cards, jar tickets, or pull tabs, or any variation of the aforementioned games, and any other activity that is authorized by the Board as a wagering game or device under this chapter. "Casino gaming" or "game" includes on-premises mobile casino gaming.
2352	2348
2353	2349		"Casino gaming establishment" means the premises, including the entire property located at the address of the licensed casino, upon which lawful casino gaming is authorized and licensed as provided in this chapter. "Casino gaming establishment" does not include a riverboat or similar vessel.
2354	2350
2355	2351		"Casino gaming operator" means any person issued a license by the Commissioner to operate a casino gaming establishment.
2356	2352
2357	2353		"Cheat" means to alter the selection criteria that determine the result of a game or the amount or frequency of payment in a game for the purpose of obtaining an advantage for one or more participants in a game over other participants in a game.
2358	2354
2359	2355		"Counter check" means an interest-free negotiable instrument for a specified amount executed by a player and held by the casino that serves as evidence of the casino gaming patron's obligation to pay the casino and that can be exchanged by the casino gaming patron for the specified amount in chips, tokens, credits, electronic credits, electronic cash, or electronic cards.
2360	2356
2361	2357		"Eligible host city" means any city described in 29.5-307 in which a casino gaming establishment is authorized to be located.
2362	2358
2363	2359		"Entity" means a person that is not a natural person.
2364	2360
2365	2361		"Gaming operation" means the conduct of authorized casino gaming within a casino gaming establishment.
2366	2362
2367	2363		"Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens, electronic credits, electronic cash, or electronic cards by casino gaming patrons. "Gross receipts" does not include the cash value of promotions or credits provided to and exchanged by casino gaming patrons for chips, tokens, electronic credits, electronic cash, or electronic cards. "Gross receipts" also does not include uncollectable counter checks.
2368	2364
2369	2365		"Immediate family" means (i) a spouse and (ii) any other person residing in the same household as an officer or employee and who is a dependent of the officer or employee or of whom the officer or employee is a dependent.
2370	2366
2371	2367		"Individual" means a natural person.
2372	2368
2373	2369		"Licensee" or "license holder" means any person holding an operator's license under 29.5-312.
2374	2370
2375	2371		"On-premises mobile casino gaming" means casino gaming offered by a casino gaming operator at a casino gaming establishment using a computer network of both federal and nonfederal interoperable packet-switched data networks through which the casino gaming operator may offer casino gaming to individuals who have established an on-premises mobile casino gaming account with the casino gaming operator and who are physically present on the premises of the casino gaming establishment, as authorized by regulations promulgated by the Board.
2376	2372
2377	2373		"Permit holder" means any person holding a supplier or service permit pursuant to this chapter.
2378	2374
2379	2375		"Person" means an individual, partnership, joint venture, association, limited liability company, stock corporation, or nonstock corporation and includes any person that directly or indirectly controls or is under common control with another person.
2380	2376
2381	2377		"Preferred casino gaming operator" means the proposed casino gaming establishment and operator thereof submitted by an eligible host city to the Board as an applicant for licensure.
2382	2378
2383	2379		"Prepaid access instrument" means a system device that allows a casino gaming patron access to funds that have been paid in advance and can be retrieved or transferred at some point in the future through such a device. In order to transfer funds for gaming purposes, a prepaid access instrument shall be redeemed for tokens, chips, credits, electronic credits, electronic cash, or electronic cards or used in conjunction with an approved cashless wagering system or interactive gaming account.
2384	2380
2385	2381		"Principal" means any individual who solely or together with his immediate family members (i) owns or controls, directly or indirectly, five percent or more of the pecuniary interest in any entity that is a licensee or (ii) has the power to vote or cause the vote of five percent or more of the voting securities or other ownership interests of such entity, and any person who manages a gaming operation on behalf of a licensee.
2386	2382
2387	2383		"Professional sports" means the same as that term is defined in 29.5-400.
2388	2384
2389	2385		"Security" has the same meaning as provided in 13.1-501. If the Board finds that any obligation, stock, or other equity interest creates control of or voice in the management operations of an entity in the manner of a security, then such interest shall be considered a security.
2390	2386
2391	2387		"Sports betting" means the same as that term is defined in 29.5-400.
2392	2388
2393	2389		"Sports betting facility" means an area, kiosk, or device located inside a casino gaming establishment licensed pursuant to this chapter that is designated for sports betting.
2394	2390
2395	2391		"Supplier" means any person that sells or leases, or contracts to sell or lease, any casino gaming equipment, devices, or supplies, or provides any management services, to a licensee.
2396	2392
2397	2393		"Voluntary exclusion program" means a program established by the Board pursuant to 29.5-118 that allows individuals to voluntarily exclude themselves from engaging in the activities described in subdivision 1 of 29.5-118 by placing their names on a voluntary exclusion list and following the procedures set forth by the Board.
2398	2394
2399	2395		"Youth sports" means the same as that term is defined in 29.5-400.
2400	2396
2401	2397		29.5-301. Regulation and control of casino gaming; limitation.
2402	2398
2403	2399		A. Casino gaming shall be licensed and permitted as herein provided to benefit the people of the Commonwealth. The Board is vested with authority to prescribe regulations and conditions under this chapter. The Commissioner shall retain control of all other facets of control for all casino gaming in the Commonwealth. The purposes of this chapter are to assist economic development, promote tourism, and provide for the implementation of casino gaming operations of the highest quality, honesty, and integrity and free of any corrupt, incompetent, dishonest, or unprincipled practices.
2404	2400
2405	2401		B. The conduct of casino gaming shall be limited to the qualified locations established in 29.5-307. The Commissioner shall be limited to the issuance of a single operator's license for each such qualified location.
2406	2402
2407	2403		C. The conduct of any casino gaming and entrance to such establishment is a privilege that may be granted or denied by the Commissioner or his duly authorized representatives in his discretion in order to effectuate the purposes set forth in this chapter. Any proposed site for a casino gaming establishment shall be privately owned property subject to the local land use and property taxation authority of the eligible host city in which the casino gaming establishment is located.
2408	2404
2409	2405		29.5-302. Additional powers of the Commissioner.
2410	2406
2411	2407		In addition to the powers and duties set forth in 29.5-102, the Commissioner shall:
2412	2408
2413	2409		1. Issue permits and licenses under this chapter and supervise all gaming operations licensed under the provisions of this chapter, including all persons conducting or participating in any gaming operation. The Commissioner shall employ such persons to be present during gaming operations as are necessary to ensure that such gaming operations are conducted with order and the highest degree of integrity.
2414	2410
2415	2411		2. Issue an operator's license only to a person who meets the criteria of 29.5-309.
2416	2412
2417	2413		3. Suspend, revoke, or refuse to renew any license or permit issued pursuant to this chapter.
2418	2414
2419	2415		4. Eject or exclude from a casino gaming establishment any person, whether or not he possesses a license or permit, whose conduct or reputation is such that his presence may, in the opinion of the Commissioner, reflect negatively on the honesty and integrity of casino gaming or interfere with the orderly gaming operations.
2420	2416
2421	2417		5. Immediately upon the receipt of a credible complaint of an alleged criminal violation of this chapter, report the complaint to the Attorney General and the Office of the Gaming Enforcement Coordinator at the Department of State Police for appropriate action.
2422	2418
2423	2419		6. Inspect and investigate, and have free access to, the offices, facilities, or other places of business of any licensee or permit holder and may compel the production of any of the books, documents, records, or memoranda of any licensee or permit holder for the purpose of ensuring compliance with this chapter and Board regulations.
2424	2420
2425	2421		7. Compel any person holding a license or permit pursuant to this chapter to file with the Commission such information as shall appear to the Commissioner to be necessary for the performance of the Commission's functions, including financial statements and information relative to principals and all others with any pecuniary interest in such person.
2426	2422
2427	2423		8. Impose a fine or penalty not to exceed $1 million upon any person determined, in proceedings commenced pursuant to 29.5-305, to have violated any of the provisions of this chapter or regulations promulgated by the Board.
2428	2424
2429	2425		9. Report annually to the Governor and the General Assembly on the expenses incurred in the regulation of casino gaming operations. Such annual report shall also include recommendations for changes in this chapter, as the Commissioner and Board deem necessary or desirable.
2430	2426
2431	2427		10. Report immediately to the Governor and the General Assembly any matters that require immediate changes in the laws of the Commonwealth in order to prevent abuses and evasions of this chapter or the rules and regulations adopted hereunder or to rectify undesirable conditions in connection with the operation or regulation of casino gaming in the Commonwealth.
2432	2428
2433	2429		29.5-303. Additional powers and duties of the Board; regulations.
2434	2430
2435	2431		In addition to the powers and duties set forth in 29.5-104, the Board shall have the power and duty to:
2436	2432
2437	2433		1. Adopt regulations regarding the conditions under which casino gaming shall be conducted in the Commonwealth and all such other regulations it deems necessary and appropriate to further the purposes of this chapter.
2438	2434
2439	2435		2. Issue subpoenas for the attendance of witnesses before the Board, administer oaths, and compel production of records or other documents and testimony of such witnesses whenever in the judgment of the Board it is necessary to do so for the effectual discharge of its duties.
2440	2436
2441	2437		3. Order such audits as it deems necessary and desirable.
2442	2438
2443	2439		4. Provide for the withholding of the applicable amount of state and federal income tax of persons claiming a prize or payoff for winning a game and establish the thresholds for such withholdings.
2444	2440
2445	2441		29.5-304. Fingerprints and background investigations.
2446	2442
2447	2443		The Commissioner, in conjunction with an accredited law-enforcement agency, shall conduct a background investigation, including a criminal history records check and fingerprinting, of the following individuals: (i) every individual applying for a license or permit pursuant to this chapter; (ii) every individual who is an officer, director, or principal of a licensee or applicant for a license and every employee of the licensee who conducts gaming operations; (iii) all security personnel of any licensee; and (iv) all permit holders and officers, directors, principals, and employees of permit holders whose duties relate to gaming operations in the Commonwealth. Each such individual shall submit his fingerprints and personal descriptive information to the Central Criminal Records Exchange to be forwarded to the Federal Bureau of Investigation for a national criminal records search and to the Department of State Police for a Virginia criminal history records check. The results of the background check and national and state criminal records check shall be returned to the Commissioner.
2448	2444
2449	2445		29.5-305. Hearing and appeal.
2450	2446
2451	2447		Any person aggrieved by a refusal of the Commissioner to issue any license or permit, the suspension or revocation of a license or permit, the imposition of a fine, or any other action of the Commission may seek review of such action in accordance with Board regulations and Article 3 ( 2.2-4018 et seq.) of the Administrative Process Act in the Circuit Court of the City of Richmond. Further appeals shall also be in accordance with Article 5 ( 2.2-4025 et seq.) of the Administrative Process Act.
2452	2448
2453	2449		29.5-306. Injunction.
2454	2450
2455	2451		The Commission may apply to the appropriate circuit court for an injunction against any person who has violated or may violate any provision of this chapter, Board regulation, or final decision of the Commission. The order granting or refusing such injunction shall be subject to appeal as in other cases in equity.
2456	2452
2457	2453		Article 2.
2458	2454
2459	2455		Eligible Host City; Certification of Preferred Casino Gaming Operator.
2460	2456
2461	2457		29.5-307. Eligible host city; certification of preferred casino gaming operator.
2462	2458
2463	2459		A. The conduct of casino gaming shall be limited to the following eligible host cities:
2464	2460
2465	2461		1. Any city (i) in which at least 40 percent of the assessed value of all real estate in such city is exempt from local property taxation, according to the Virginia Department of Taxation Annual Report for Fiscal Year 2018, and (ii) that experienced a population decrease of at least seven percent from 1990 to 2016, according to data provided by the U.S. Census Bureau;
2466	2462
2467	2463		2. Any city that had (i) an annual unemployment rate of at least five percent in 2018, according to data provided by the U.S. Bureau of Labor Statistics; (ii) an annual poverty rate of at least 20 percent in 2017, according to data provided by the U.S. Census Bureau; and (iii) a population decrease of at least 20 percent from 1990 to 2016, according to data provided by the U.S. Census Bureau;
2468	2464
2469	2465		3. Any city that (i) had an annual unemployment rate of at least 3.6 percent in 2018, according to data provided by the U.S. Bureau of Labor Statistics; (ii) had an annual poverty rate of at least 20 percent in 2017, according to data provided by the U.S. Census Bureau; (iii) experienced a population decrease of at least four percent from 1990 to 2016, according to data provided by the U.S. Census Bureau; and (iv) is located adjacent to a state that has adopted a Border Region Retail Tourism Development District Act;
2470	2466
2471	2467		4. Any city (i) with a population greater than 200,000 according to the 2018 population estimates from the Weldon Cooper Center for Public Service of the University of Virginia; (ii) in which at least 24 percent of the assessed value of all real estate in such city is exempt from local property taxation, according to the Virginia Department of Taxation Annual Report for Fiscal Year 2018; and (iii) that experienced a population decrease of at least five percent from 1990 to 2016, according to data provided by the U.S. Census Bureau; and
2472	2468
2473	2469		5. Any city (i) in which at least 17 percent of the assessed value of all real estate in such city is exempt from local property taxation, according to the Virginia Department of Taxation Annual Report for Fiscal Year 2016; (ii) that had a poverty rate of at least 21 percent in 2019, according to data provided by the U.S. Census Bureau; and (iii) that had an annual unemployment rate of at least 13 percent in 2020, according to data provided by the U.S. Bureau of Labor and Statistics.
2474	2470
2475	2471		B. In selecting a preferred casino gaming operator, an eligible host city shall have considered and given substantial weight to factors such as:
2476	2472
2477	2473		1. The potential benefit and prospective revenues of the proposed casino gaming establishment.
2478	2474
2479	2475		2. The total value of the proposed casino gaming establishment.
2480	2476
2481	2477		3. The proposed capital investment and the financial health of the proposer and any proposed development partners.
2482	2478
2483	2479		4. The experience of the proposer and any development partners in the operation of a casino gaming establishment.
2484	2480
2485	2481		5. Security plans for the proposed casino gaming establishment.
2486	2482
2487	2483		6. The economic development value of the proposed casino gaming establishment and the potential for community reinvestment and redevelopment in an area in need of such.
2488	2484
2489	2485		7. Availability of city-owned assets and privately owned assets, such as real property, including where there is only one location practicably available or land under a development agreement between a potential operator and the city, incorporated in the proposal.
2490	2486
2491	2487		8. The best financial interest of the city.
2492	2488
2493	2489		9. The proposer's status as a minority-owned business as defined in 2.2-1604 or the proposer's commitment to solicit equity investment in the proposed casino gaming establishment from one or more minority-owned businesses and the proposer's commitment to solicit contracts with minority-owned businesses for the purchase of goods and services.
2494	2490
2495	2491		C. The Commissioner shall, upon request of any eligible host city, provide a list of resources that may be of assistance in evaluating the technical merits of any proposal submitted pursuant to this section, provided that selection of the preferred casino gaming operator shall be at the city's sole discretion.
2496	2492
2497	2493		D. The eligible host city described in subdivision A 4 shall provide substantial and preferred consideration to a proposer who is a Virginia Indian tribe recognized in House Joint Resolution No. 54 (1983) and acknowledged by the Assistant Secretary-Indian Affairs for the U.S. Department of the Interior as an Indian tribe within the meaning of federal law that has the authority to conduct gaming activities as a matter of claimed inherent authority or under the authority of the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).
2498	2494
2499	2495		E. An eligible host city shall promptly submit its preferred casino gaming operator to the Commission for review prior to scheduling the referendum required by 29.5-325. An eligible host city shall include with the submission any written or electronic documentation considered as part of the criteria in subsection B, including any memorandums of understanding, incentives, development agreements, land purchase agreements, or local infrastructure agreements. The Commissioner shall conduct a preliminary review of the financial status and ability of the preferred casino gaming operator to operate and properly support ongoing operations in an eligible host city, as well as current casino operations in other states and territories. The Commissioner shall conduct such review within 45 days of receipt of the submission by the eligible host city. An eligible host city and preferred casino gaming operator shall fully cooperate with all necessary requests by the Commissioner in that regard. Upon successful preliminary review, the Commissioner shall certify approval for the eligible host city to proceed to the referendum required by 29.5-325. The Board shall develop guidelines establishing procedures and criteria for conducting the preliminary review required by this subsection. Certification by the Commissioner to proceed to referendum shall in no way entitle the preferred casino gaming operator to approval of any application to operate a casino gaming establishment.
2500	2496
2501	2497		29.5-308. Regional Improvement Commission.
2502	2498
2503	2499		There is hereby established the Regional Improvement Commission (the RIC). The membership of the RIC shall consist of one member appointed by the local governing body of each jurisdiction composing the transportation district created pursuant to the Transportation District Act of 1964 ( 33.2-1900 et seq.) that includes the eligible host city described in subdivision A 3 of 29.5-307. Each member shall be appointed to serve a two-year term. Notwithstanding the provisions of subdivision B 1 of 29.5-327, for a casino gaming establishment located in the eligible host city described in subdivision A 3 of 29.5-307, such transfer, otherwise returned to the city where it was collected, shall instead be made to the RIC. The purpose of the RIC shall be to (i) receive disbursements made to it; (ii) establish funding priorities for member localities related to improvements in the areas of education, transportation, and public safety; and (iii) make annual payments divided equally among the jurisdictions to fund the established priorities as determined by the RIC.
2504	2500
2505	2501		Article 3.
2506	2502
2507	2503		Licenses and Supplier's Permits.
2508	2504
2509	2505		29.5-309. Operator's license required; capital investment; equity interest; transferability; fee.
2510	2506
2511	2507		A. No person shall operate a casino gaming establishment unless he has obtained an operator's license issued by the Commissioner in accordance with the provisions of this chapter and the regulations promulgated pursuant to this chapter.
2512	2508
2513	2509		B. To obtain an operator's license issued under the provisions of this chapter, the applicant shall (i) make a capital investment of at least $300 million in a casino gaming establishment, including the value of the real property upon which such establishment is located and all furnishings, fixtures, and other improvements, and (ii) possess an equity interest equal to at least 20 percent of the casino gaming establishment.
2514	2510
2515	2511		C. A license issued under the provisions of this chapter shall be transferable, provided that the Commissioner has approved the proposed transfer and all licensure requirements are satisfied at the time the transfer takes effect.
2516	2512
2517	2513		D. A nonrefundable fee of $15 million shall be paid by the applicant to the Commission upon the issuance of a license and upon any subsequent transfer of a license to operate a casino gaming establishment. Such fees shall be deposited by the Commission into the Commonwealth Gaming Operations Fund established pursuant to 29.5-119.
2518	2514
2519	2515		E. No person issued a license pursuant to this chapter shall be precluded from obtaining a license for online sports betting pursuant to Chapter 4 ( 29.5-400 et seq.) or any subsequently created online sports betting license.
2520	2516
2521	2517		29.5-310. Submission of preferred casino gaming operator by eligible host city; application for operator's license; penalty.
2522	2518
2523	2519		A. If a majority of those voting in a referendum held pursuant to 29.5-325 vote in the affirmative, the eligible host city shall certify its preferred casino gaming operator and submit such certification to the Commission within 30 days.
2524	2520
2525	2521		B. Any preferred casino gaming operator desiring to operate a casino gaming establishment shall file with the Commission an application for an operator's license. Such application shall be filed at the place prescribed by the Board and shall be in such form and contain such information as prescribed by the Board, including the following:
2526	2522
2527	2523		1. The name and address of such person; if a corporation, the state of its incorporation, the full name and address of each officer and director thereof, and, if a foreign corporation, whether it is qualified to do business in the Commonwealth; if a partnership or joint venture, the name and address of each general partner thereof; if a limited liability company, the name and address of each manager thereof; or, if another entity, the name and address of each person performing duties similar to those of officers, directors, and general partners;
2528	2524
2529	2525		2. The name and address of each principal and of each person who has contracted to become a principal of the applicant, including providing management services with respect to any part of gaming operations; the nature and cost of such principal's interest; and the name and address of each person who has agreed to lend money to the applicant;
2530	2526
2531	2527		3. Such information as the Board considers appropriate regarding the character, background, and responsibility of the applicant and the principals, officers, and directors of the applicant;
2532	2528
2533	2529		4. A description of the casino gaming establishment in which such gaming operations are to be conducted, the city where such casino gaming establishment will be located, and the applicant's capital investment plan for the site. The Board shall require such information about a casino gaming establishment and its location as it deems necessary and appropriate to determine whether it complies with the minimum standards provided in this chapter and whether gaming operations at such location will be in furtherance of the purposes of this chapter;
2534	2530
2535	2531		5. Such information relating to the financial responsibility of the applicant, including the applicant's financing plan for the casino gaming establishment, and the applicant's ability to perform under its license as the Board considers appropriate;
2536	2532
2537	2533		6. If any of the facilities necessary for the conduct of gaming operations are to be leased, the terms of such lease;
2538	2534
2539	2535		7. Evidence of compliance by the applicant with the economic development and land use plans and design review criteria of the local governing body of the city in which the casino gaming establishment is proposed to be located, including certification that the project complies with all applicable land use ordinances pursuant to Chapter 22 ( 15.2-2200 et seq.) of Title 15.2;
2540	2536
2541	2537		8. Such information necessary to enable the Commissioner to review the application based upon the best financial interests of the Commonwealth;
2542	2538
2543	2539		9. Such information necessary to enable the Commissioner to authorize on-premises mobile casino gaming pursuant to this chapter;
2544	2540
2545	2541		10. Submission of the following: (i) a minority investment plan disclosing any equity interest owned by a minority individual or minority-owned business or the applicant's efforts to seek equity investment from minority individuals or minority-owned businesses and (ii) a plan for the participation of minority individuals or minority-owned businesses in the applicant's purchase of goods and services related to the casino gaming establishment. As used in this subdivision, "minority individual" and "minority-owned business" mean the same as those terms are defined in 2.2-1604; and
2546	2542
2547	2543		11. Any other information that the Board in its discretion considers appropriate.
2548	2544
2549	2545		C. A nonrefundable application fee of $50,000 shall be paid for each principal at the time of filing to defray the costs associated with the background investigation conducted for the Commission. If the reasonable costs of the investigation exceed the application fee, the applicant shall pay the additional amount to the Commission. The Board may establish regulations calculating the reasonable costs to the Commission in performing its functions under this chapter and allocating such costs to the applicants for licensure at the time of filing.
2550	2546
2551	2547		D. Any license application from an Indian tribe as described in subsection D of 29.5-307 shall certify that the material terms of the relevant development agreements between the Indian tribe and any development partner have been determined in the opinion of the Office of General Counsel of the National Indian Gaming Commission after review not to deprive the Indian tribe of the sole proprietor interest in the gaming operations for purposes of federal Indian gaming law.
2552	2548
2553	2549		E. Any application filed pursuant to this chapter shall be verified by the oath or affirmation of the applicant. Any person who knowingly makes a false statement on an application is guilty of a Class 4 felony.
2554	2550
2555	2551		F. The licensed operator shall be the person primarily responsible for the gaming operations under its license and compliance of such operations with the provisions of this chapter.
2556	2552
2557	2553		G. The Commissioner may use or rely on any application, supporting documentation, or information submitted pursuant to 29.5-402, in reviewing and verifying an application submitted pursuant to this chapter.
2558	2554
2559	2555		29.5-311. Issuance of operator's license to preferred casino gaming operator; standards for licensure; temporary casino gaming allowed under certain conditions.
2560	2556
2561	2557		A. If a preferred casino gaming operator, as certified by the applicable eligible host city, submits an application that meets the standards for licensure set forth in this chapter, the Commissioner shall issue an operator's license to such preferred casino gaming operator. The Commissioner shall not consider an application from any applicant that has not been certified as a preferred casino gaming operator by an eligible host city.
2562	2558
2563	2559		B. The Commissioner may issue an operator's license to an applicant only if he finds that:
2564	2560
2565	2561		1. The applicant submits a plan for addressing responsible gaming issues, including the goals of the plan, procedures, and deadlines for implementation of the plan;
2566	2562
2567	2563		2. The applicant has established a policy requiring all license and permit holders who interact directly with the public in the casino gaming establishment to complete a training course acceptable to the Board in how to recognize and report suspected human trafficking;
2568	2564
2569	2565		3. The casino gaming establishment the applicant proposes to use on a permanent basis is or will be appropriate for gaming operations consistent with the purposes of this chapter;
2570	2566
2571	2567		4. The city where the casino gaming establishment will be located certifies that the proposed project complies with all applicable land use ordinances pursuant to Chapter 22 ( 15.2-2200 et seq.) of Title 15.2;
2572	2568
2573	2569		5. Any required local infrastructure or site improvements, including necessary sewerage, water, drainage facilities, or traffic flow, are to be paid exclusively by the applicant without state or local financial assistance;
2574	2570
2575	2571		6. If the applicant is an entity, its securities are fully paid and, in the case of stock, nonassessable and have been subscribed and will be paid for only in cash or property to the exclusion of past services;
2576	2572
2577	2573		7. All principals meet the criteria of this subsection and have submitted to the jurisdiction of the courts of the Commonwealth, and all nonresident principals have designated the Commissioner as their agent for receipt of process;
2578	2574
2579	2575		8. If the applicant is an entity, it has the right to purchase at fair market value the securities of, and require the resignation of, any person who is or becomes disqualified under subsection C;
2580	2576
2581	2577		9. The applicant meets any other criteria established by this chapter and the Board's regulations for the granting of an operator's license;
2582	2578
2583	2579		10. The applicant is qualified to do business in the Commonwealth or is subject to the jurisdiction of the courts of the Commonwealth; and
2584	2580
2585	2581		11. The applicant has not previously been denied a license pursuant to subsection C.
2586	2582
2587	2583		C. The Commissioner shall deny a license to an applicant if he finds that for any reason the issuance of a license to the applicant would reflect adversely on the honesty and integrity of the casino gaming industry in the Commonwealth or that the applicant, or any officer, principal, manager, or director of the applicant:
2588	2584
2589	2585		1. Is or has been guilty of any illegal act, conduct, or practice in connection with gaming operations in this or any other state or has been convicted of a felony;
2590	2586
2591	2587		2. Has had a license or permit to hold or conduct a gaming operation denied for cause, suspended, or revoked, in this or any other state or country, unless the license or permit was subsequently granted or reinstated;
2592	2588
2593	2589		3. Has at any time during the previous five years knowingly failed to comply with the provisions of this chapter or any Board regulation;
2594	2590
2595	2591		4. Has knowingly made a false statement of material fact to the Commission or has deliberately failed to disclose any information requested by the Commission;
2596	2592
2597	2593		5. Has defaulted in the payment of any obligation or debt due to the Commonwealth and has not cured such default; or
2598	2594
2599	2595		6. Has operated or caused to be operated a casino gaming establishment for which a license is required under this chapter without obtaining such license.
2600	2596
2601	2597		D. The Commissioner shall make a determination regarding whether to issue the operator's license within 12 months of the receipt of a completed application.
2602	2598
2603	2599		E. The Commissioner shall be limited to the issuance of one operator's license for each eligible host city.
2604	2600
2605	2601		F. If, at the time of application, the applicant has not satisfied the capital investment requirement of at least $300 million pursuant to subsection B of 29.5-309 but otherwise meets the standards for licensure set forth in this chapter, the Commissioner shall issue the operator's license, which, prior to satisfying the capital investment requirement, may not be used to conduct gaming other than temporary casino gaming pursuant to subsection G.
2606	2602
2607	2603		G. The Commissioner may authorize casino gaming to occur on a temporary basis for a period of one year under the following conditions:
2608	2604
2609	2605		1. The request to authorize casino gaming is made by a preferred casino gaming operator that has been issued a license consistent with this section.
2610	2606
2611	2607		2. The preferred casino gaming operator has submitted as a part of its application for licensure a construction schedule for a casino gaming establishment that has been approved by the eligible host city and the Commissioner.
2612	2608
2613	2609		3. The temporary casino gaming is to be conducted at the same site referenced in the referendum held pursuant to 29.5-325.
2614	2610
2615	2611		4. The preferred casino gaming operator has secured suppliers and employees holding the appropriate permits required by this chapter and sufficient for the routine operation of the site where the temporary casino gaming is authorized.
2616	2612
2617	2613		5. A performance bond is posted in an amount acceptable to the Board.
2618	2614
2619	2615		H. No portion of any facility developed with the assistance of any grants or loans provided by a redevelopment and housing authority created pursuant to 36-4 shall be used as a casino gaming establishment.
2620	2616
2621	2617		The Commissioner may renew the authorization to conduct temporary casino gaming for an additional year if he determines that the preferred casino gaming operator has made a good faith effort to comply with the approved construction schedule.
2622	2618
2623	2619		I. An operator issued a license under this chapter shall not be precluded from operating a sports betting facility for individuals to participate in sports betting activities in a casino gaming establishment, which may include in-person sports betting where the bettor places a bet directly with an employee of the casino or the sports betting permit holder, or through a kiosk or device.
2624	2620
2625	2621		29.5-312. Duration and form of operator's license; bond.
2626	2622
2627	2623		A. A casino gaming operator license under this chapter shall be valid for a period of 10 years from its date of issuance but shall be reviewed no less frequently than annually to determine compliance with this chapter and Board regulations. Such annual review shall include a certification by the eligible host city of the status of the operator's compliance with local ordinances and regulations. If the certification states that the operator is not in compliance, the Commissioner shall require the operator to submit a plan of compliance, corrective action, or request for variance.
2628	2624
2629	2625		B. The Board shall establish by regulation the criteria and procedures for license renewal and for amending licenses to conform to changes in a licensee's gaming operations. Such regulations shall require the operator to submit to the Commissioner any updates or revisions to the capital investment plan provided with the initial license application pursuant to subdivision B 4 of 29.5-310. Renewal shall not be unreasonably refused.
2630	2626
2631	2627		C. The Board shall require a bond with surety acceptable to it, and in an amount determined by it, to be sufficient to cover any indebtedness incurred by the licensee to the Commonwealth.
2632	2628
2633	2629		29.5-313. Records to be kept; reports; reinvestment projection.
2634	2630
2635	2631		A. A licensed operator shall keep his books and records so as to clearly indicate the total amount of gross receipts and adjusted gross receipts.
2636	2632
2637	2633		B. The licensed operator shall furnish to the Commission reports and information as the Commission may require with respect to its activities on forms designated and supplied for such purpose by the Board.
2638	2634
2639	2635		C. Every five years the licensed operator shall submit to the Commission for review and approval a reinvestment projection related to the casino gaming establishment to cover the succeeding five-year period of operations.
2640	2636
2641	2637		29.5-314. Electronic accounting and reporting requirements; annual audit of licensed gaming operations.
2642	2638
2643	2639		A. Each casino game that operates electronically shall be connected to a central monitoring and audit system established and operated by the Commission. Such system shall provide the ability to audit and account for terminal revenues and distributions in real time. The central monitoring and audit system shall collect the following information from each electronically operated casino game, as applicable: (i) cash in, (ii) cash out, (iii) points played, (iv) points won, (v) gross terminal income, (vi) net terminal income, (vii) the number of plays of the game, (viii) the amounts paid to play the game, (ix) door openings, (x) power failures, (xi) remote activations and disabling, and (xii) any other information required by Board regulations.
2644	2640
2645	2641		B. Within 90 days after the end of each fiscal year, the licensed operator shall transmit to the Commission a third-party, independent audit of the financial transactions and condition of the licensee's total operations. All audits required by this section shall conform to Board regulations.
2646	2642
2647	2643		29.5-315. Supplier's permits; penalty.
2648	2644
2649	2645		A. The Commissioner may issue a supplier's permit to any person upon application and payment of a nonrefundable application fee set by the Board, a determination by the Commissioner that the applicant is eligible for a supplier's permit, and payment of a $5,000 initial permit fee. A supplier's permit shall be renewed at a fee to be determined by the Board, not to exceed $5,000 per year of licensure. Such fees shall be deposited by the Commission into the Commonwealth Gaming Operations Fund established pursuant to 29.5-119. The Board shall prescribe by regulation the criteria for the issuance, duration, and renewal of supplier's permits.
2650	2646
2651	2647		B. The holder of a supplier's permit may sell or lease, or contract to sell or lease, casino gaming equipment and supplies, or provide management services, to any licensee involved in the ownership or management of gaming operations to the extent provided in the permit.
2652	2648
2653	2649		C. Gaming equipment, devices, and supplies shall not be distributed unless such equipment, devices, and supplies conform to standards adopted by the Board.
2654	2650
2655	2651		D. A person is ineligible to receive a supplier's permit if:
2656	2652
2657	2653		1. The person has been convicted of a felony under the laws of the Commonwealth or any other state or of the United States;
2658	2654
2659	2655		2. The person has submitted an application for a license under this chapter that contains false information;
2660	2656
2661	2657		3. The person is a Board member, employee of the Commission, or a member of the immediate household of a Board member or Commission employee;
2662	2658
2663	2659		4. The person is an entity in which a person described in subdivision 1, 2, or 3 is an officer, director, principal, or managerial employee;
2664	2660
2665	2661		5. The firm or corporation employs a person who participates in the management or operation of casino gaming authorized under this chapter; or
2666	2662
2667	2663		6. A prior permit issued to such person to own or operate casino gaming establishments or supply goods or services to a gaming operation under this chapter or any laws of any other jurisdiction has been revoked.
2668	2664
2669	2665		E. Any person that supplies any casino gaming equipment, devices, or supplies to a licensed gaming operation or manages any operation, including a computerized network, of a casino gaming establishment shall first obtain a supplier's permit. A supplier shall furnish to the Commission a list of all management services, equipment, devices, and supplies offered for sale or lease in connection with the games authorized under this chapter. A supplier shall keep books and records for the furnishing of casino gaming equipment, devices, and supplies to gaming operations separate and distinct from any other business that the supplier might operate. A supplier shall file a quarterly return with the Commission listing all sales and leases for which a permit is required. A supplier shall permanently affix its name to all its equipment, devices, and supplies for gaming operations. Any supplier's equipment, devices, or supplies that are used by any person in an unauthorized gaming operation shall be forfeited to the Commonwealth.
2670	2666
2671	2667		F. A licensed operator may operate its own equipment, devices, and supplies and may utilize casino gaming equipment, devices, and supplies at such locations as may be approved by the Commission for the purpose of training enrollees in a school operated by the licensee to train individuals who desire to become qualified for employment or promotion in gaming operations. The Board may promulgate regulations for the conduct of any such schools.
2672	2668
2673	2669		G. Each holder of an operator's license under this chapter shall file an annual report with the Commission listing its inventories of casino gaming equipment, devices, and supplies related to its operations in the Commonwealth.
2674	2670
2675	2671		H. Any person who knowingly makes a false statement on an application for a supplier's permit is guilty of a Class 4 felony.
2676	2672
2677	2673		29.5-316. Denial of permit final.
2678	2674
2679	2675		The denial of a supplier's permit by the Commissioner shall be final unless appealed under 29.5-305. A permit may not be applied for again for a period of five years from the date of denial without the permission of the Commissioner.
2680	2676
2681	2677		29.5-317. Suspension or revocation of license or permit.
2682	2678
2683	2679		A. The Commissioner may suspend, revoke, refuse to renew, or assess a civil penalty against the holder of a license or permit in a sum not to exceed $100,000, after notice and a hearing. Such license or permit may, however, be temporarily suspended by the Commissioner without prior notice, pending any prosecution, hearing, or investigation, whether by a third party or by the Commissioner. A license may be suspended, revoked, or refused renewal by the Commissioner for one or more of the following reasons:
2684	2680
2685	2681		1. Failure to comply with, or violation of, any provision of this chapter or any regulation or condition of the Board;
2686	2682
2687	2683		2. Failure to disclose facts during the application process that indicate that such license or permit should not have been issued;
2688	2684
2689	2685		3. Conviction of a felony under the laws of the Commonwealth or any other state or of the United States subsequent to issuance of a license or permit;
2690	2686
2691	2687		4. Failure to file any return or report, to keep any records, or to pay any fees or other charges required by this chapter;
2692	2688
2693	2689		5. Any act of fraud, deceit, misrepresentation, or conduct prejudicial to public confidence in the integrity of gaming operations;
2694	2690
2695	2691		6. A material change, since issuance of the license or permit, with respect to any matters required to be considered by the Commissioner under this chapter; or
2696	2692
2697	2693		7. Other factors established by Board regulation.
2698	2694
2699	2695		B. Such action by the Commissioner shall be final unless appealed in accordance with 29.5-305. Suspension or revocation of a license or permit for any violation shall not preclude criminal liability for such violation.
2700	2696
2701	2697		29.5-318. Acquisition of interest in licensee or permit holder.
2702	2698
2703	2699		The Commission shall require any person desiring to become a principal of, or other investor in, any licensee or holder of a supplier's permit to apply to the Commissioner for approval and may demand such information of the applicant as it finds necessary. The Commissioner shall consider such application within 60 days of its receipt, and if in his judgment the acquisition by the applicant would be detrimental to the public interest, to the honesty and integrity of gaming operations, or to its reputation, the application shall be denied. All reasonable costs for review by the Commissioner shall be borne by the applicant.
2704	2700
2705	2701		Article 4.
2706	2702
2707	2703		Service Permits.
2708	2704
2709	2705		29.5-319. Service permit required.
2710	2706
2711	2707		No person shall participate in any gaming operation as a casino gaming employee or concessionaire or employee of either or in any other occupation that the Board has determined necessary to regulate in order to ensure the integrity of casino gaming in the Commonwealth unless such person possesses a service permit to perform such occupation issued by the Commissioner. The Board shall prescribe by regulation the criteria for the issuance, duration, and renewal of service permits.
2712	2708
2713	2709		29.5-320. Application for service permit.
2714	2710
2715	2711		A. Any person desiring to obtain a service permit as required by this chapter shall apply on a form prescribed by the Board. The application shall be accompanied by a fee prescribed by the Board. Such fees shall be deposited by the Commission into the Commonwealth Gaming Operations Fund established pursuant to 29.5-119.
2716	2712
2717	2713		B. Any application filed hereunder shall be verified by the oath or affirmation of the applicant.
2718	2714
2719	2715		29.5-321. Consideration of service permit application.
2720	2716
2721	2717		A. The Commissioner shall promptly consider any application for a service permit and issue or deny such service permit on the basis of the information in the application and all other information provided, including any investigation he considers appropriate. If an application for a service permit is approved, the Commissioner shall issue a service permit containing such information as the Board considers appropriate.
2722	2718
2723	2719		B. The Commissioner shall deny the application and refuse to issue the service permit, which denial shall be final unless an appeal is taken under 29.5-305, if it finds that the issuance of such service permit to such applicant would not be in the best interests of the Commonwealth or would reflect negatively on the honesty and integrity of casino gaming in the Commonwealth or that the applicant:
2724	2720
2725	2721		1. Has knowingly made a false statement of a material fact in the application or has deliberately failed to disclose any information requested by the Commission;
2726	2722
2727	2723		2. Is or has been guilty of any corrupt or fraudulent practice or conduct in connection with gaming operations in the Commonwealth or any other state;
2728	2724
2729	2725		3. Has knowingly failed to comply with the provisions of this chapter or the regulations promulgated pursuant to this chapter;
2730	2726
2731	2727		4. Has had a service permit to engage in activity related to casino gaming denied for cause, suspended, or revoked in the Commonwealth or any other state, and such denial, suspension, or revocation is still in effect;
2732	2728
2733	2729		5. Is unqualified to perform the duties required for the service permit sought; or
2734	2730
2735	2731		6. Has been convicted of a misdemeanor or felony involving unlawful conduct of wagering, fraudulent use of a gaming credential, unlawful transmission of information, touting, bribery, embezzlement, distribution or possession of drugs, excluding misdemeanor possession of marijuana, or any crime considered by the Commission to be detrimental to the honesty and integrity of casino gaming in the Commonwealth.
2736	2732
2737	2733		C. The Commissioner may refuse to issue a service permit if for any reason he determines the granting of such service permit is not consistent with the provisions of this chapter or its responsibilities or any regulations promulgated by any other agency of the Commonwealth.
2738	2734
2739	2735		29.5-322. Suspension or revocation of service permit; civil penalty.
2740	2736
2741	2737		A. The Commissioner may suspend, revoke, refuse to renew, or assess a civil penalty against the holder of a service permit in a sum not to exceed $10,000, after notice and a hearing. Such service permit may, however, be temporarily suspended by the Commissioner without prior notice, pending any prosecution, hearing, or investigation, whether by a third party or by the Commissioner. A service permit may be suspended, revoked, or refused renewal by the Commissioner for one or more of the following reasons:
2742	2738
2743	2739		1. Failure to comply with, or violation of, any provision of this chapter or any regulation or condition of the Board;
2744	2740
2745	2741		2. Failure to disclose facts during the application process that indicate that such service permit should not have been issued;
2746	2742
2747	2743		3. Conviction of a felony under the laws of the Commonwealth or any other state or of the United States subsequent to issuance of a service permit;
2748	2744
2749	2745		4. Failure to file any return or report, keep any record, or pay any fees or other charges required by this chapter;
2750	2746
2751	2747		5. Any act of fraud, deceit, misrepresentation, or conduct prejudicial to public confidence in the integrity of gaming operations;
2752	2748
2753	2749		6. A material change, since issuance of the service permit, with respect to any matters required to be considered by the Commissioner under this chapter; or
2754	2750
2755	2751		7. Other factors established by Board regulation.
2756	2752
2757	2753		B. Actions taken by the Commissioner pursuant to this section shall be final unless appealed in accordance with 29.5-305. Suspension or revocation of a service permit for any violation shall not preclude criminal liability for such violation.
2758	2754
2759	2755		Article 5.
2760	2756
2761	2757		Conduct of Casino Gaming; Local Referendum.
2762	2758
2763	2759		29.5-323. Conduct of casino gaming.
2764	2760
2765	2761		A. Casino gaming may be conducted by licensed operators, subject to the following:
2766	2762
2767	2763		1. Minimum and maximum wagers on games shall be set by Board regulations.
2768	2764
2769	2765		2. Agents of the Commission, the Department of State Police, and the local law-enforcement and fire departments may enter any casino gaming establishment and inspect such facility at any time for the purpose of determining compliance with this chapter and other applicable fire prevention and safety laws.
2770	2766
2771	2767		3. Employees of the Commission shall have the right to be present in any facilities under the control of the licensee.
2772	2768
2773	2769		4. Gaming equipment, devices, and supplies customarily used in conducting casino gaming shall be purchased or leased only from suppliers holding permits for such purpose under this chapter.
2774	2770
2775	2771		5. Persons licensed under this chapter shall permit no form of wagering on games except as permitted by this chapter.
2776	2772
2777	2773		6. Wagers may be received only from a person present at the licensed casino gaming establishment. No person present at such facility shall place or attempt to place a wager on behalf of another person who is not present at the facility.
2778	2774
2779	2775		7. No person under age 21 shall be permitted to make a wager under this chapter or be present where casino gaming is being conducted. A licensee or permit holder may employ persons between the ages of 18 and 21 for positions in nongaming areas and such employees may traverse the gaming floor, while on duty.
2780	2776
2781	2777		8. No person shall place or accept a wager on youth sports.
2782	2778
2783	2779		9. No licensee or permit holder shall accept postdated checks in payment for participation in any gaming operation. No licensee or permit holder, or any person on the premises of a casino gaming establishment, shall extend lines of credit or accept any credit card or other electronic fund transfer in payment for participation in any gaming operation. A licensee or permit holder may accept prepaid access instruments. In order to transfer funds for gaming purposes, a prepaid access instrument must be redeemed for tokens, chips, credits, electronic credits, electronic cash, or electronic cards or used in conjunction with an approved cashless wagering system or interactive gaming account. A licensee or permit holder may issue interest-free counter checks to a player provided (i) the player submits an application and (ii) the licensee or permit holder verifies funds sufficient to cover the face value of the counter check. Such counter checks shall be subject to the tax reporting requirements under state and federal law. Nothing shall preclude a player from making a wire transfer to licensees or permit holders.
2784	2780
2785	2781		B. Casino gaming wagers shall be conducted only with tokens, chips, electronic credits, electronic cash, or electronic cards purchased from a licensed casino gaming operator. The conversion of cash to tokens, chips, credits, electronic credits, electronic cash, or electronic cards at a slot machine or any other casino game is permissible and does not constitute conducting a wager. Such tokens, chips, credits, electronic credits, electronic cash, or electronic cards may be used only for the purpose of (i) making wagers on games, (ii) redeeming for cash or check, or (iii) making a donation to a charitable entity granted tax-exempt status under 501(c)(3) of the Internal Revenue Code, provided that the donated tokens, chips, credits, electronic credits, electronic cash, or electronic cards are redeemed by the same charitable entity accepting the donation. The provisions of this subsection shall not apply to sports betting in a sports betting facility, which may be conducted using cash.
2786	2782
2787	2783		29.5-324. Posting of illegal gaming tip line.
2788	2784
2789	2785		Every casino gaming operator shall post in a conspicuous place in its casino gaming establishment a sign that bears the toll-free telephone number and website for the illegal gaming tip line established and administered by the Office of the Gaming Enforcement Coordinator in the Department of State Police pursuant to 52-54 for members of the public to report concerns about, or suspected instances of, illegal gaming activities.
2790	2786
2791	2787		29.5-325. Local referendum required.
2792	2788
2793	2789		A. The Commissioner shall not grant any initial license to operate a gaming operation in an eligible host city until a referendum on the question of whether casino gaming shall be permitted in such city is approved by the voters of such city.
2794	2790
2795	2791		B. The governing body of any city containing an eligible host city shall petition the court, by resolution, asking that a referendum be held on the question of whether casino gaming shall be permitted within the city. The court, by order entered of record in accordance with Article 5 ( 24.2-681 et seq.) of Chapter 6 of Title 24.2, shall require the regular election officials of the city to open the polls and take the sense of the voters on the question as herein provided.
2796	2792
2797	2793		C. The clerk of such court of record of such city shall publish notice of such election in a newspaper of general circulation in such city once a week for three consecutive weeks prior to such election.
2798	2794
2799	2795		D. The regular election officers of such city shall open the polls at the various voting places in such city on the date specified in such order and conduct such election in the manner provided by law. The election shall be by ballot, which shall be prepared by the electoral board of the city and on which shall be printed the following question:
2800	2796
2801	2797		"Shall casino gaming be permitted at a casino gaming establishment in (name of city and location) as may be approved by the Virginia Gaming Commission?
2802	2798
2803	2799		[ ] Yes
2804	2800
2805	2801		[ ] No"
2806	2802
2807	2803		In the blank shall be inserted the name of the city in which such election is held and the proposed location of the casino gaming establishment. Any voter desiring to vote "Yes" shall mark in the square provided for such purpose immediately preceding the word "Yes," leaving the square immediately preceding the word "No" unmarked. Any voter desiring to vote "No" shall mark in the square provided for such purpose immediately preceding the word "No," leaving the square immediately preceding the word "Yes" unmarked.
2808	2804
2809	2805		E. The ballots shall be counted, the returns made and canvassed as in other elections, and the results certified by the electoral board to the court ordering such election. Thereupon, such court shall enter an order proclaiming the results of such election and a duly certified copy of such order shall be transmitted to the Commission and to the governing body of such city.
2810	2806
2811	2807		F. A subsequent local referendum shall be required if a license has not been granted by the Commissioner within five years of the court order proclaiming the results of the election.
2812	2808
2813	2809		G. The governing body of any eligible host city that holds a local referendum pursuant to this section that subsequently fails shall be prohibited from holding another local referendum on the same question for a period of three years from the date of the last referendum.
2814	2810
2815	2811		Article 6.
2816	2812
2817	2813		Taxation.
2818	2814
2819	2815		29.5-326. Tax rate on adjusted gross receipts.
2820	2816
2821	2817		A. A tax on the adjusted gross receipts of each licensed operator received from games authorized under this chapter shall be imposed as follows:
2822	2818
2823	2819		1. On the first $200 million of adjusted gross receipts of an operator each calendar year, a rate of 18 percent.
2824	2820
2825	2821		2. On the adjusted gross receipts of an operator that exceed $200 million but do not exceed $400 million each calendar year, a rate of 23 percent.
2826	2822
2827	2823		3. On the adjusted gross receipts of an operator that exceed $400 million each calendar year, a rate of 30 percent.
2828	2824
2829	2825		B. All tax revenues collected pursuant to the provisions of this section shall accrue to the Gaming Proceeds Fund and be allocated as provided in 29.5-327.
2830	2826
2831	2827		C. The taxes imposed by this section shall be paid by the licensed operator to the Commission no later than the close of the fifth day of each month for the preceding month when the adjusted gross receipts were received and shall be accompanied by forms and returns prescribed by the Board. Revenues collected pursuant to this section shall be credited to the Gaming Proceeds Fund to be appropriated as set forth in 29.5-327. The Commissioner may suspend or revoke the license of an operator for willful failure to submit the wagering tax payment or the return within the specified time.
2832	2828
2833	2829		D. The tax imposed under this section shall not apply to the receipts of a licensed operator from sports betting, whether such receipts were generated from a sports betting facility or sports betting platform; instead, such receipts shall be taxable under 29.5-407.
2834	2830
2835	2831		29.5-327. Gaming Proceeds Fund; distribution of revenue.
2836	2832
2837	2833		A. There is hereby created in the state treasury a special nonreverting fund to be known as the Gaming Proceeds Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All moneys required to be deposited into the Fund pursuant to this chapter shall be paid into the state treasury and credited to the Fund. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund.
2838	2834
2839	2835		B. Revenues from the Fund shall be apportioned by the Comptroller as follows:
2840	2836
2841	2837		1. The following amounts shall be distributed to the city in which they were collected by warrants of the Comptroller drawn on the Treasurer of Virginia on a quarterly basis:
2842	2838
2843	2839		a. An amount equal to a six percent tax on the first $200 million of adjusted gross receipts;
2844	2840
2845	2841		b. An amount equal to a seven percent tax on the adjusted gross receipts that exceed $200 million but do not exceed $400 million; and
2846	2842
2847	2843		c. An amount equal to an eight percent tax on the adjusted gross receipts that exceed $400 million.
2848	2844
2849	2845		2. For any casino gaming establishment operated by a Virginia Indian tribe recognized in House Joint Resolution No. 54 (1983) and acknowledged by the Assistant Secretary-Indian Affairs of the U.S. Department of the Interior as an Indian tribe within the meaning of federal law that has the authority to conduct gaming activities as a matter of claimed inherent authority or under the authority of the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.), an amount equal to a tax of one percent on the adjusted gross receipts of such establishment shall be deposited in the Virginia Indigenous People's Trust Fund established pursuant to 2.2-401.01.
2850	2846
2851	2847		3. Eight-tenths of one percent of the Fund shall be deposited in the Problem Gambling Treatment and Support Fund established pursuant to 37.2-314.2.
2852	2848
2853	2849		4. Two-tenths of one percent of the Fund shall be deposited in the Family and Children's Trust Fund established pursuant to 63.2-2100.
2854	2850
2855	2851		5. Any remaining revenues not apportioned pursuant to subdivisions 1 through 4 shall be deposited in the School Construction Fund established pursuant to 22.1-140.1.
2856	2852
2857	2853		Article 7.
2858	2854
2859	2855		Prohibited Acts; Penalties.
2860	2856
2861	2857		29.5-328. Illegal operation; penalty.
2862	2858
2863	2859		A. No person shall:
2864	2860
2865	2861		1. Operate casino gaming where wagering is used or to be used without a license issued by the Commissioner.
2866	2862
2867	2863		2. Operate casino gaming where wagering is permitted other than in the manner specified by this chapter.
2868	2864
2869	2865		3. Offer, promise, or give anything of value or benefit to a person who is connected with a gaming operation, including an officer or employee of a licensed operator or permit holder, pursuant to an agreement or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to whom the offer, promise, or gift was made in order to affect or attempt to affect the outcome of a game, or to influence official action of a member of the Board, the Commissioner, a Commission employee, or a local governing body.
2870	2866
2871	2867		4. Solicit or knowingly accept a promise of anything of value or benefit while the person is connected with a gaming operation, including an officer or employee of a licensed operator or permit holder, pursuant to an understanding or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to affect or attempt to affect the outcome of a game, or to influence official action of a member of the Board, the Commissioner, a Commission employee, or a local governing body.
2872	2868
2873	2869		5. Use or possess with the intent to use a device to assist in:
2874	2870
2875	2871		a. Projecting the outcome of a game;
2876	2872
2877	2873		b. Keeping track of the cards played;
2878	2874
2879	2875		c. Analyzing the probability of the occurrence of an event relating to a game; or
2880	2876
2881	2877		d. Analyzing the strategy for playing or betting to be used in a game except as permitted by Board regulation.
2882	2878
2883	2879		6. Cheat at gaming.
2884	2880
2885	2881		7. Manufacture, sell, or distribute any card, chip, dice, game, or device that is intended to be used to violate any provision of this chapter.
2886	2882
2887	2883		8. Alter or misrepresent the outcome of a game on which wagers have been made after the outcome is made sure but before it is revealed to the players.
2888	2884
2889	2885		9. Place a bet after acquiring knowledge, not available to all players, of the outcome of the game that is the subject of the bet or to aid a person in acquiring the knowledge for the purpose of placing a bet contingent on that outcome.
2890	2886
2891	2887		10. Claim, collect, or take, or attempt to claim, collect, or take, money or anything of value in or from a game, with intent to defraud, without having made a wager contingent on winning the game or claim, collect, or take an amount of money or thing of value of greater value than the amount won.
2892	2888
2893	2889		11. Use counterfeit chips or tokens in a game.
2894	2890
2895	2891		12. Possess any key or device designed for the purpose of opening, entering, or affecting the operation of a game, drop box, or electronic or mechanical device connected with the game or for removing coins, tokens, chips, or other contents of a game. This subdivision does not apply to a casino gaming licensee or employee of a casino gaming licensee acting in furtherance of the employee's employment.
2896	2892
2897	2893		B. Any person convicted of a violation of this section is guilty of a Class 6 felony. In addition, any person convicted of a violation of subsection A shall be barred for life from gaming operations under the jurisdiction of the Commission.
2898	2894
2899	2895		29.5-329. Fraudulent use of credential; penalty.
2900	2896
2901	2897		Any person other than the lawful holder thereof who has in his possession any credential, license, or permit issued by the Commissioner, or any person who has in his possession any forged or simulated credential, license, or permit of the Commission, and who uses such credential, license, or permit for the purposes of misrepresentation, fraud, or touting, is guilty of a Class 4 felony.
2902	2898
2903	2899		Any credential, license, or permit issued by the Commissioner, if used by the holder thereof for a purpose other than identification and in the performance of legitimate duties in a casino gaming establishment, shall be automatically revoked.
2904	2900
2905	2901		29.5-330. Prohibition on persons younger than 21 years of age placing wagers and sports betting on youth sports; penalty.
2906	2902
2907	2903		A. No person shall wager on or conduct any wagering on the outcome of a game pursuant to the provisions of this chapter unless such person is 21 years of age or older. No person shall accept any wager from a person younger than 21 years of age.
2908	2904
2909	2905		B. No person shall wager on or conduct any wagering on the outcome of a youth sports game. No person shall accept any wager from a person on a youth sports game.
2910	2906
2911	2907		C. Violation of this section is a Class 1 misdemeanor.
2912	2908
2913	2909		29.5-331. Conspiracies and attempts to commit violations; penalty.
2914	2910
2915	2911		A. Any person who conspires, confederates, or combines with another, within or outside the Commonwealth, to commit a felony prohibited by this chapter is guilty of a Class 6 felony.
2916	2912
2917	2913		B. Any person who attempts to commit any act prohibited by this chapter is guilty of a criminal offense and shall be punished as provided in 18.2-26, 18.2-27, or 18.2-28, as appropriate.
2918	2914
2919	2915		29.5-332. Civil penalties.
2920	2916
2921	2917		Any person who conducts a gaming operation without first obtaining a license to do so, or who continues to conduct such games after revocation of his license, in addition to other penalties provided, shall be subject to a civil penalty assessed by the Commission equal to the amount of gross receipts derived from wagering on games, whether unauthorized or authorized, conducted on the day, as well as confiscation and forfeiture of all casino gaming equipment, devices, and supplies used in the conduct of unauthorized games. Any civil penalties collected pursuant to this section shall be payable to the State Treasurer for deposit to the general fund.
2922	2918
2923	2919		29.5-333. Use of the phrase "Virginia is for Bettors" prohibited; civil penalty.
2924	2920
2925	2921		A. No licensee, or any affiliate thereof, shall use the phrase "Virginia is for Bettors" in an advertisement in association with its product or service. Any licensee, or affiliate thereof, that violates this section shall be subject to a civil penalty of not more than $50,000. The Commissioner shall enforce the provisions of this section.
2926	2922
2927	2923		B. All civil penalties collected pursuant to this section shall accrue to the general fund.
2928	2924
2929	2925		Article 8.
2930	2926
2931	2927		On-Premises Mobile Casino Gaming.
2932	2928
2933	2929		29.5-334. Federal law applicable.
2934	2930
2935	2931		On-premises mobile casino gaming shall be subject to the provisions of, and preempted and superseded by, any applicable federal law.
2936	2932
2937	2933		29.5-335. Authorized on-premises mobile casino gaming.
2938	2934
2939	2935		On-premises mobile casino gaming is prohibited except when offered by a casino gaming operator to individuals who participate in on-premises mobile casino gaming on the premises of the casino gaming establishment. Any casino gaming operator that offers on-premises mobile casino gaming shall comply with any regulations promulgated by the Board related to on-premises mobile casino gaming.
2940	2936
2941	2937		29.5-336. Location of primary on-premises mobile casino gaming operation.
2942	2938
2943	2939		A. A casino gaming operator's primary on-premises mobile casino gaming operation, including facilities, equipment, and personnel who are directly engaged in the conduct of on-premises mobile casino gaming, shall be located within a restricted area on the premises of the casino gaming establishment. Backup equipment used on a temporary basis pursuant to regulations promulgated by the Board to conduct on-premises mobile casino gaming may, with the approval of the Commissioner, be located outside the territorial limits of a casino gaming establishment.
2944	2940
2945	2941		B. Facilities used to conduct and support on-premises mobile casino gaming shall:
2946	2942
2947	2943		1. Be arranged in a manner promoting optimum security;
2948	2944
2949	2945		2. Include a closed circuit visual monitoring system according to specifications approved by the Board, with access on the premises to the system or its signal provided to the Commission;
2950	2946
2951	2947		3. Not be designed in any way that might interfere with the ability of the Commission to supervise on-premises mobile casino gaming operations; and
2952	2948
2953	2949		4. Comply in all respects with regulations of the Board pertaining thereto.
2954	2950
2955	2951		29.5-337. On-premises mobile casino gaming accounts.
2956	2952
2957	2953		A. A casino gaming operator may offer on-premises mobile casino gaming only to an individual who has established an on-premises mobile casino gaming account and uses such account to place wagers as follows:
2958	2954
2959	2955		1. Any wager shall be placed directly with the casino gaming operator by the account holder;
2960	2956
2961	2957		2. The casino gaming operator shall verify the account holder's physical presence on the premises of the casino gaming establishment; and
2962	2958
2963	2959		3. The account holder shall provide the casino licensee with the correct authentication information for access to the wagering account.
2964	2960
2965	2961		B. A casino gaming operator shall not accept a wager in an amount in excess of funds on deposit in the account of the individual placing the wager.
2966	2962
2967	2963		29.5-338. Disposition of inactive, dormant accounts.
2968	2964
2969	2965		All amounts remaining in on-premises mobile casino gaming accounts inactive or dormant for such period and under such conditions as established by regulation by the Board shall be closed. Any funds remaining in the account at such time shall be paid 50 percent to the casino gaming operator and 50 percent to the general fund. Before closing an account pursuant to this section, the casino gaming operator shall attempt to contact the account holder by mail, phone, and electronic mail.
2970	2966
2971	2967		29.5-339. Assistance to people with gambling problem.
2972	2968
2973	2969		A. In order to assist those persons who may have a gambling problem, a casino gaming operator shall:
2974	2970
2975	2971		1. Cause the words "If you or someone you know has a gambling problem and wants help, call 1-800-GAMBLER," or some comparable language approved by the Department, which language shall include the words "gambling problem" and "call 1-800 GAMBLER," to be displayed prominently at log-on and log-off times to any person visiting or logged onto on-premises mobile casino gaming; and
2976	2972
2977	2973		2. Provide a mechanism by which an account holder may establish the following controls on wagering activity through the wagering account:
2978	2974
2979	2975		a. A limit on the amount of money deposited within a specified period of time and the length of time the account holder will be unable to participate in gaming if the holder reaches the established deposit limit; and
2980	2976
2981	2977		b. A temporary suspension of gaming through the account for any number of hours or days.
2982	2978
2983	2979		B. The casino gaming operator shall not send gaming-related electronic mail to an account holder while gaming through his account is suspended, if the suspension is for at least 72 hours. The casino gaming operator shall provide a mechanism by which an account holder may change these controls, except that, while gaming through the wagering account is suspended, the account holder may not change gaming controls until the suspension expires, but the account holder shall continue to have access to the account and shall be permitted to withdraw funds from the account upon proper application therefor.
2984	2980
2985	2981		29.5-340. Offering of on-premises mobile casino gaming without approval; penalties.
2986	2982
2987	2983		Any person who offers on-premises mobile casino gaming in violation of this chapter or regulations promulgated pursuant to this chapter is guilty of a Class 6 felony and subject to a fine of not more than $25,000 and, in the case of a person other than a natural person, to a fine of not more than $100,000.
2988	2984
2989	2985		29.5-341. Tampering with equipment; penalties.
2990	2986
2991	2987		A. Any person who knowingly tampers with software, computers, or other equipment used to conduct on-premises mobile casino gaming to alter the odds or the payout of a game or disables the game from operating according to the rules of the game as promulgated by the Board is guilty of a Class 5 felony and subject to a fine of not more than $50,000 and, in the case of a person other than a natural person, to a fine of not more than $200,000.
2992	2988
2993	2989		B. In addition to the penalties provided in subsection A, an employee of the casino gaming operator who violates this section shall have his permit revoked and shall be subject to such further penalty as the Commission deems appropriate.
2994	2990
2995	2991		C. In addition to the penalties provided in subsection A, a casino gaming operator that violates this section shall have its license to conduct casino gaming suspended for a period determined by the Commissioner and shall be subject to such further penalty as the Commission deems appropriate.
2996	2992
2997	2993		29.5-342. Tampering affecting odds, payout; penalties.
2998	2994
2999	2995		A. Any person who knowingly offers or allows to be offered any on-premises mobile casino game that has been tampered with in a way that affects the odds or the payout of a game or disables the game from operating according to the rules of the game as promulgated by the Board is guilty of a Class 5 felony and subject to a fine of not more than $50,000 and, in the case of a person other than a natural person, to a fine of not more than $200,000.
3000	2996
3001	2997		B. In addition to the penalties provided in subsection A, an employee of the casino gaming operator who violates this section shall have his permit suspended for a period of not less than 30 days.
3002	2998
3003	2999		C. In addition to the penalties provided in subsection A, a casino gaming operator that violates this section shall have its license to conduct casino gaming suspended for a period of not less than 30 days.
3004	3000
3005	3001		29.5-343. Facilities permitted to conduct on-premises mobile casino gaming; violations, penalties.
3006	3002
3007	3003		No person shall make its premises available for on-premises mobile casino gaming or advertise that its premises may be used for such purpose, other than a casino gaming operator that (i) has located all of its equipment used to conduct on-premises mobile casino gaming, including computers, servers, monitoring rooms, and hubs, on the premises of its casino gaming establishment and (ii) that offers on-site mobile casino gaming only to individuals who participate in such gaming on the premises of the casino gaming establishment. Any person that is determined by the Commission to have violated the provisions of this section shall be subject to a penalty of $1,000 per player per day for making its premises available for on-premises mobile casino gaming and of $10,000 per violation for advertising that its premises may be used for such purpose.
3008	3004
3009	3005		29.5-344. Taxation.
3010	3006
3011	3007		Any gross receipts from on-premises mobile casino gaming shall be included in a casino gaming operator's adjusted gross receipts and subject to taxation pursuant to the provisions of 29.5-326 and 29.5-327.
3012	3008
3013	3009		CHAPTER 4.
3014	3010
3015	3011		SPORTS BETTING.
3016	3012
3017	3013		Article 1.
3018	3014
3019	3015		General Provisions.
3020	3016
3021	3017		29.5-400. Definitions.
3022	3018
3023	3019		As used in this chapter, unless the context requires a different meaning:
3024	3020
3025	3021		"Adjusted gross revenue" means gross revenue minus:
3026	3022
3027	3023		1. All cash and the cash value of merchandise paid out as winnings to bettors, and the value of all bonuses or promotions provided to patrons as an incentive to place or as a result of their having placed Internet sports betting wagers in an operator's first 12 months of operations;
3028	3024
3029	3025		2. Uncollectible gaming receivables, which shall not exceed two percent, or a different percentage as determined by the Board pursuant to 29.5-104, of gross revenue minus all cash paid out as winnings to bettors;
3030	3026
3031	3027		3. If the permit holder is a significant infrastructure limited licensee, as defined in 29.5-601, any funds paid into the horsemen's purse account pursuant to the provisions of subdivision 13 of 29.5-604; and
3032	3028
3033	3029		4. All excise taxes on sports betting paid pursuant to federal law.
3034	3030
3035	3031		"Amateur sports" means any sports or athletic event that is not professional sports, college sports, Virginia college sports, or youth sports. "Amateur sports" includes domestic, international, and Olympic sports or athletic events. "Amateur sports" does not include charitable gaming, as defined in 29.5-200; fantasy contests, as defined in 29.5-500; or horse racing, as defined in 29.5-601.
3036	3032
3037	3033		"College sports" means an athletic event (i) in which at least one participant is a team from a public or private institution of higher education, regardless of where such institution is located, and (ii) that does not include a team from a Virginia public or private institution of higher education.
3038	3034
3039	3035		"Covered persons" means athletes; umpires, referees, and officials; personnel associated with clubs, teams, leagues, and athletic associations; medical professionals and athletic trainers who provide services to athletes and players; and the immediate family members and associates of such persons.
3040	3036
3041	3037		"Gross revenue" means the total of all cash, property, or any other form of remuneration, whether collected or not, received by a permittee from its sports betting operations.
3042	3038
3043	3039		"Major league sports franchise" means a professional baseball, basketball, football, hockey, or soccer team that is at the highest-level league of play for its respective sport.
3044	3040
3045	3041		"Motor sports facility" means an outdoor motor sports facility that hosts a National Association for Stock Car Auto Racing (NASCAR) national touring race.
3046	3042
3047	3043		"Official league data" means statistics, results, outcomes, and other data relating to a professional sports event obtained by a permit holder under an agreement with a sports governing body or with an entity expressly authorized by a sports governing body for determining the outcome of tier 2 bets.
3048	3044
3049	3045		"Permit holder" means a person to which the Commissioner issues a permit pursuant to 29.5-402 and 29.5-403.
3050	3046
3051	3047		"Personal biometric data" means any information about an athlete that is derived from his DNA, heart rate, blood pressure, perspiration rate, internal or external body temperature, hormone levels, glucose levels, hydration levels, vitamin levels, bone density, muscle density, or sleep patterns, or other information as may be prescribed by the Board by regulation.
3052	3048
3053	3049		"Principal" means any individual who solely or together with his immediate family members (i) owns or controls, directly or indirectly, five percent or more of the pecuniary interest in any entity that is a permit holder or (ii) has the power to vote or cause the vote of five percent or more of the voting securities or other ownership interests of such entity. "Principal" includes any individual who is employed in a managerial capacity for a sports betting platform or sports betting facility on behalf of a permit holder.
3054	3050
3055	3051		"Professional sports" means an athletic event involving at least two human competitors who receive compensation, in excess of their expenses, for participating in such event. "Professional sports" does not include charitable gaming, as defined in 29.5-200; fantasy contests, as defined in 29.5-500; or horse racing, as defined in 29.5-601.
3056	3052
3057	3053		"Prohibited conduct" means any statement, action, or other communication intended to influence, manipulate, or control a betting outcome of a sports event or of any individual occurrence or performance in a sports event in exchange for financial gain or to avoid financial or physical harm. "Prohibited conduct" includes statements, actions, and communications made to a covered person by a third party. "Prohibited conduct" does not include statements, actions, or communications made or sanctioned by a sports team or sports governing body.
3058	3054
3059	3055		"Proposition bet" means a bet on an individual action, statistic, occurrence, or non-occurrence to be determined during an athletic event and includes any such action, statistic, occurrence, or non-occurrence that does not directly affect the final outcome of the athletic event to which it relates.
3060	3056
3061	3057		"Sports betting" means placing wagers on professional sports, college sports, amateur sports, sporting events, or any other event approved by the Commissioner, and any portion thereof, and includes placing wagers related to the individual performance statistics of athletes in such sports and events. "Sports betting" includes any system or method of wagering approved by the Commissioner, including single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets. "Sports betting" does not include participating in charitable gaming authorized by Chapter 2 ( 29.5-200 et seq.); participating in fantasy contests authorized by Chapter 5 ( 29.5-500 et seq.); wagering on horse racing, historical horse racing, or simulcast horse racing authorized by Chapter 6 ( 29.5-600 et seq.); or participating in any lottery game authorized under Subtitle II ( 29.5-700 et seq.). "Sports betting" does not include placing a wager on a college sports event in which a Virginia public or private institution of higher education is a participant.
3062	3058
3063	3059		"Sports betting facility" means an area, kiosk, or device located inside a casino gaming establishment licensed pursuant to Chapter 3 ( 29.5-300 et seq.) that is designated for sports betting.
3064	3060
3065	3061		"Sports betting permit" means a permit to operate a sports betting platform or sports betting facility issued pursuant to the provisions of 29.5-402, 29.5-403, and 29.5-404.
3066	3062
3067	3063		"Sports betting platform" means a website, app, or other platform accessible via the Internet or mobile, wireless, or similar communications technology that sports bettors use to participate in sports betting.
3068	3064
3069	3065		"Sports betting program" means the program established by the Board to allow sports betting as described in this chapter.
3070	3066
3071	3067		"Sports bettor" means a person physically located in Virginia who participates in sports betting.
3072	3068
3073	3069		"Sports event" or "sporting event" means professional sports, college sports, amateur sports, and any athletic event, motor race event, electronic sports event, competitive video game event, or any other event approved by the Commissioner.
3074	3070
3075	3071		"Sports governing body" means an organization, headquartered in the United States, that prescribes rules and enforces codes of conduct with respect to a professional sports or college sports event and the participants therein. "Sports governing body" includes a designee of the sports governing body.
3076	3072
3077	3073		"Stadium" means the physical facility that is the primary location at which a major league sports franchise hosts athletic events and any appurtenant facilities.
3078	3074
3079	3075		"Tier 1 bet" means a bet that is placed using the Internet and that is not a tier 2 bet.
3080	3076
3081	3077		"Tier 2 bet" means a bet that is placed using the Internet and that is placed after the event it concerns has started.
3082	3078
3083	3079		"Virginia college sports" means an athletic event in which at least one participant is a team from a Virginia public or private institution of higher education.
3084	3080
3085	3081		"Youth sports" means an athletic event (i) involving a majority of participants under age 18 or (ii) in which at least one participant is a team from a public or private elementary, middle, or secondary school, regardless of where such school is located. However, if an athletic event meets the definition of college sports or professional sports, such event shall not be considered youth sports regardless of the age of the participants. An international athletic event organized by the International Olympic Committee shall not be considered to be youth sports, regardless of the age of the participants.
3086	3082
3087	3083		29.5-401. Additional powers and duties of the Commissioner; reporting.
3088	3084
3089	3085		In addition to the powers and duties set forth in 29.5-102:
3090	3086
3091	3087		A. The Commissioner may:
3092	3088
3093	3089		1. Require bond or other surety satisfactory to the Commissioner from permit holders in such amount as provided in the rules and regulations of the Board adopted under this chapter;
3094	3090
3095	3091		2. Suspend, revoke, or refuse to renew any permit issued pursuant to this chapter or the rules and regulations adopted under this chapter; and
3096	3092
3097	3093		3. Enter into contracts for the operation of the sports betting program, and enter into contracts with other states related to sports betting, provided that a contract awarded or entered into by the Commissioner shall not be assigned by the holder thereof except by specific approval of the Commissioner; and
3098	3094
3099	3095		B. The Commissioner shall:
3100	3096
3101	3097		1. Certify monthly to the State Comptroller and the Board a full and complete statement of sports betting revenues and expenses for the previous month;
3102	3098
3103	3099		2. Report monthly to the Governor, the Secretary of Finance, and the Chairmen of the Senate Committee on Finance and Appropriations, House Committee on Finance, and House Committee on Appropriations the total sports betting revenues and expenses for the previous month and make an annual report, which shall include a full and complete statement of sports betting revenues and expenses, to the Governor and the General Assembly, including recommendations for changes in this chapter as the Commissioner and Board deem prudent;
3104	3100
3105	3101		3. In accordance with sports betting program regulations, approve methods for sports bettors to fund sports betting accounts, including automated clearing house payments, credit cards, debit cards, wire transfers, and any other method that the Board determines is appropriate for sports betting; and
3106	3102
3107	3103		4. Report immediately to the Governor and the General Assembly any matters that require immediate changes in the laws of the Commonwealth in order to prevent abuses and evasions of this chapter or the rules and regulations adopted under this chapter or to rectify undesirable conditions in connection with the administration or operation of the sports betting program.
3108	3104
3109	3105		Article 2.
3110	3106
3111	3107		Permits.
3112	3108
3113	3109		29.5-402. Application for a sports betting permit; penalty.
3114	3110
3115	3111		A. An applicant for a sports betting permit shall:
3116	3112
3117	3113		1. Submit an application to the Commission, on forms prescribed by the Board, containing the information prescribed in subsection B; and
3118	3114
3119	3115		2. Pay to the Commission a nonrefundable fee of $50,000 for each principal at the time of filing to defray the costs associated with the background investigations conducted by the Commission. If the reasonable costs of the investigation exceed the application fee, the applicant shall pay the additional amount to the Commission. The Board may establish regulations calculating the reasonable costs to the Commission in performing its functions under this chapter and allocating such costs to the applicants for licensure at the time of filing. The fees for each principal and any additional investigation costs paid to the Commission shall be deposited into the Commonwealth Gaming Operations Fund established pursuant to 29.5-119.
3120	3116
3121	3117		B. An application for a sports betting permit shall include the following information:
3122	3118
3123	3119		1. The applicant's background in sports betting;
3124	3120
3125	3121		2. The applicant's experience in wagering activities in other jurisdictions, including the applicant's history and reputation of integrity and compliance;
3126	3122
3127	3123		3. The applicant's proposed internal controls, including controls to ensure that no prohibited or voluntarily excluded person will be able to participate in sports betting;
3128	3124
3129	3125		4. The applicant's history of working to prevent compulsive gambling, including training programs for its employees;
3130	3126
3131	3127		5. If applicable, any supporting documentation necessary to establish eligibility for substantial and preferred consideration pursuant to the provisions of this section;
3132	3128
3133	3129		6. The applicant's proposed procedures to detect and report suspicious or illegal betting activity; and
3134	3130
3135	3131		7. Any other information the Board deems necessary.
3136	3132
3137	3133		C. The Commission shall conduct a background investigation on the applicant. The background investigation shall include a credit history check, a tax record check, and a criminal history records check.
3138	3134
3139	3135		D. 1. The Commissioner shall not issue any permit pursuant to this chapter until the Board has established a consumer protection program and published a consumer protection bill of rights pursuant to 29.5-104.
3140	3136
3141	3137		2. The Commissioner shall issue no fewer than four and no more than 12 permits pursuant to this section; however, if an insufficient number of applicants apply for the Commissioner to satisfy the minimum, this provision shall not be interpreted to direct the Commissioner to issue a permit to an unqualified applicant. A permit shall not count toward the minimum or maximum if it (i) is issued pursuant to subdivision 4 or 5 to a major league sports franchise or to the operator of a facility; (ii) is issued pursuant to subdivision 6 to an applicant that operates or intends to operate a casino gaming establishment; or (iii) is revoked, expires, or otherwise becomes not effective.
3142	3138
3143	3139		3. In issuing permits to operate sports betting platforms and sports betting facilities, the Commissioner shall consider the following factors:
3144	3140
3145	3141		a. The contents of the applicant's application as required by subsection B;
3146	3142
3147	3143		b. The extent to which the applicant demonstrates past experience, financial viability, compliance with applicable laws and regulations, and success with sports betting operations in other states;
3148	3144
3149	3145		c. The extent to which the applicant will be able to meet the duties of a permit holder, as specified in 29.5-404;
3150	3146
3151	3147		d. Whether the applicant has demonstrated to the Commission that it has made serious, good-faith efforts to solicit and interview a reasonable number of investors that are minority individuals, as defined in 2.2-1604;
3152	3148
3153	3149		e. The amount of adjusted gross revenue and associated tax revenue that an applicant is expected to generate;
3154	3150
3155	3151		f. The effect of issuing an additional permit on the amount of gross revenue and associated tax revenue generated by all existing permit holders, considered in the aggregate; and
3156	3152
3157	3153		g. Any other factor the Board considers relevant.
3158	3154
3159	3155		4. In issuing permits to operate sports betting platforms and sports betting facilities, the Commissioner shall give substantial and preferred consideration to any applicant that (i) has made or intends to make a capital investment of at least $300 million in a casino gaming establishment, including the value of the real property upon which such establishment is located and all furnishings, fixtures, and other improvements; (ii) has had its name submitted as a preferred casino gaming operator to the Commissioner by an eligible host city; and (iii) has been certified by the Commissioner to proceed to a local referendum on whether casino gaming will be allowed in the locality in which the applicant intends to operate a casino gaming establishment.
3160	3156
3161	3157		5. In a manner as may be required by Board regulation, any entity that applies pursuant to subdivision 4 may demonstrate compliance with the requirements of an application, the duties of a permit holder, and any other provision of this chapter through the use of a partner, subcontractor, or other affiliate of the applicant.
3162	3158
3163	3159		E. The Commissioner shall make a determination on an initial application for a sports betting permit within 90 days of receipt. The Commissioner's action shall be final unless appealed in accordance with 29.5-104.
3164	3160
3165	3161		F. The following shall be grounds for denial of a permit or renewal of a permit:
3166	3162
3167	3163		1. The Commissioner reasonably believes the applicant will be unable to satisfy the duties of a permit holder as described in subsection A of 29.5-404;
3168	3164
3169	3165		2. The Commissioner reasonably believes that the applicant or its directors lack good character, honesty, or integrity;
3170	3166
3171	3167		3. The Commissioner reasonably believes that the applicant's prior activities, criminal record, reputation, or associations are likely to (i) pose a threat to the public interest, (ii) impede the regulation of sports betting, or (iii) promote unfair or illegal activities in the conduct of sports betting;
3172	3168
3173	3169		4. The applicant or its directors knowingly make a false statement of material fact or deliberately fail to disclose information requested by the Commissioner;
3174	3170
3175	3171		5. The applicant or its directors knowingly fail to comply with the provisions of this chapter or any requirements of the Commissioner;
3176	3172
3177	3173		6. The applicant or its directors were convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust within the 10 years prior to the submission date of the permit application;
3178	3174
3179	3175		7. The applicant's license, registration, or permit to conduct a sports betting operation issued by any other jurisdiction has been suspended or revoked;
3180	3176
3181	3177		8. The applicant defaults in payment of any obligation or debt due to the Commonwealth; or
3182	3178
3183	3179		9. The applicant's application is incomplete.
3184	3180
3185	3181		G. The Commissioner shall have the discretion to waive any of the grounds for denial of a permit or renewal of a permit if he determines that denial would limit the number of applicants or permit holders in a manner contrary to the best interests of the Commonwealth.
3186	3182
3187	3183		H. Prior to issuance of a permit, each permit holder shall either (i) be bonded by a surety company entitled to do business in the Commonwealth in such amount and penalty as may be prescribed by the regulations of the Board or (ii) provide other surety, letter of credit, or reserve as may be satisfactory to the Commissioner. Such surety shall be prescribed by Board regulations and shall not exceed a reasonable amount.
3188	3184
3189	3185		I. Any person who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application pursuant to this chapter is guilty of a Class 1 misdemeanor.
3190	3186
3191	3187		J. In addition to the fee required pursuant to subdivision A 2, any applicant to which the Commissioner issues a permit shall pay a nonrefundable fee of $250,000 to the Commission prior to the issuance of such permit. Such fees shall be deposited by the Commission into the Commonwealth Gaming Operations Fund established pursuant to 29.5-119.
3192	3188
3193	3189		29.5-403. Renewals of permits.
3194	3190
3195	3191		A. A permit issued pursuant to 29.5-402 shall be valid for three years from the date issued.
3196	3192
3197	3193		B. At least 60 days before the expiration of a permit, the permit holder shall submit a renewal application, on forms prescribed by the Board, with a nonrefundable renewal fee of $200,000. Such fees shall be deposited into the Commonwealth Gaming Operations Fund established pursuant to 29.5-119.
3198	3194
3199	3195		C. The Commissioner may deny a permit renewal if he finds grounds for denial as described in subsection F of 29.5-402. The Commissioner's action shall be final unless appealed in accordance with 29.5-104.
3200	3196
3201	3197		D. The Commissioner shall make a determination on an application for a renewal of a sports betting permit within 60 days of receipt. The Commissioner's action shall be final unless appealed in accordance with 29.5-104.
3202	3198
3203	3199		29.5-404. Duties of permit holders.
3204	3200
3205	3201		A. A permit holder shall ensure that its sports betting operation takes reasonable measures to:
3206	3202
3207	3203		1. Ensure that only persons physically located in Virginia are able to place bets through its sports betting platform, if applicable;
3208	3204
3209	3205		2. Protect the confidential information of bettors using its sports betting platform or placing bets at its sports betting facility;
3210	3206
3211	3207		3. Prevent betting on events that are prohibited by 29.5-409, underage betting as prohibited by 29.5-410, and bets by persons who are prohibited from sports betting by 29.5-411;
3212	3208
3213	3209		4. Allow persons to restrict themselves from placing bets with the permit holder, including sharing, at the person's request, his request for self-exclusion with the Commission for the sole purpose of disseminating the request to other permit holders;
3214	3210
3215	3211		5. Establish procedures to detect suspicious or illegal betting activity, including measures to immediately report such activity to the Commission;
3216	3212
3217	3213		6. Provide for the issuance of applicable tax forms to persons who meet the reporting threshold for income from sports betting; and
3218	3214
3219	3215		7. If applicable, allow sports bettors to establish and fund sports betting accounts over the Internet on a sports betting platform, which may be funded through methods including automated clearing house payments, credit cards, debit cards, wire transfers, or any other method approved by the Commissioner under 29.5-401.
3220	3216
3221	3217		B. A permit holder shall maintain records on:
3222	3218
3223	3219		1. All bets, including the bettor's personal information, the amount and type of bet, the time and location of the bet, and the outcome of the bet; and
3224	3220
3225	3221		2. Suspicious or illegal betting activity.
3226	3222
3227	3223		C. A permit holder shall disclose the records described in subsection B to the Commission upon request and shall maintain such records for at least three years after the related sports event occurs.
3228	3224
3229	3225		D. 1. If a sports governing body notifies the Commission that real-time information-sharing for bets placed on its sporting events is necessary and desirable, permit holders shall, as soon as is commercially reasonable, share the information required to be retained pursuant to subdivision B 1 of 29.5-404 with the sports governing body or its designee with respect to bets on its sporting events. The information shared pursuant to this subsection shall be shared pseudonymously and shall not include personal information associated with any bettor. A permit holder shall not be required to share any information that is required to be kept confidential under federal or state law.
3230	3226
3231	3227		2. A sports governing body shall use information shared pursuant to this subsection only for the purpose of integrity monitoring and shall not use such information for any commercial purpose. A sports governing body shall provide for security measures with respect to such information so as to prevent unauthorized access and distribution.
3232	3228
3233	3229		E. In advertising its sports betting operations, a permit holder shall ensure that its advertisements:
3234	3230
3235	3231		1. Do not target persons under the age of 21;
3236	3232
3237	3233		2. Disclose the identity of the permit holder;
3238	3234
3239	3235		3. Provide information about or links to resources related to gambling addiction; and
3240	3236
3241	3237		4. Are not misleading to a reasonable person.
3242	3238
3243	3239		F. A permit holder shall not sublicense, convey, concede, or otherwise transfer its permit to a third party unless granted approval by the Commissioner. The Commissioner shall charge a nonrefundable fee of $200,000 for a permit transfer. Such fees shall be deposited into the Commonwealth Gaming Operations Fund established pursuant to 29.5-119.
3244	3240
3245	3241		G. 1. A permit holder may operate its sports betting platform under a brand other than its own but is prohibited from holding itself out to the public as a sports betting operation under more than one brand, and a permit holder shall conspicuously display its utilized brand to sports bettors; however, if a permit holder is a major league sports franchise, it shall not be required to associate the name of its sports betting platform with the name of the major league sports franchise and shall be allowed to hold its sports betting platform out to the public under a separate brand name.
3246	3242
3247	3243		2. A permit holder is prohibited from cooperatively marketing its sports betting platform with any business issued a license pursuant to the provisions of Title 4.1. If casino gaming is authorized under the laws of the Commonwealth and a casino gaming operator is licensed by the Commissioner as a permit holder, the prohibition in this subdivision shall not apply to such operator, provided that such operator shall be authorized to cooperatively market only on the premises of its casino gaming establishment. A permit holder shall not be allowed an exemption from the prohibition in this subdivision unless (i) such permit holder complies with any applicable local zoning ordinances and (ii) the local governing body approves by ordinance cooperative marketing with respect to the permit holder's stadium or casino gaming establishment.
3248	3244
3249	3245		H. A permit holder shall not purchase or use any personal biometric data unless the permit holder has received written permission from the athlete's exclusive bargaining representative.
3250	3246
3251	3247		I. Permit holders shall at all times maintain cash reserves in amounts to be established by Board regulation.
3252	3248
3253	3249		29.5-405. Suspension and revocation of permits; civil penalties.
3254	3250
3255	3251		If the Commissioner determines that a permit holder has violated this chapter, he may, with at least 15 days' notice and a hearing, (i) suspend or revoke the permit holder's permit and (ii) impose a monetary penalty of not more than $1,000 for each violation per day of this chapter. The Commission shall enforce civil penalties under this section and shall deposit all collected penalties to the general fund. The Commissioner's action shall be final unless appealed in accordance with 29.5-104.
3256	3252
3257	3253		29.5-406. Use of official league data.
3258	3254
3259	3255		A. A permit holder may use any data source for determining the result of a tier 1 bet.
3260	3256
3261	3257		B. A sports governing body may notify the Commission that it desires permit holders to use official league data to settle tier 2 bets. A notification under this subsection shall be made according to forms and procedures prescribed by the Board. The Commissioner shall notify each permit holder of the sports governing body's notification within five days after the Commission's receipt of the notification. If a sports governing body does not notify the Commission of its desire to supply official league data, a permit holder may use any data source for determining the result of a tier 2 bet on a professional sports event of the league governed by the sports governing body.
3262	3258
3263	3259		C. Within 60 days after the Commissioner notifies each permit holder as required under subsection B, permit holders shall use only official league data to determine the results of tier 2 bets on professional sports events of the league governed by the sports governing body, unless any of the following apply:
3264	3260
3265	3261		1. The sports governing body is unable to provide a feed, on commercially reasonable terms, of official league data to determine the results of a tier 2 bets, in which case permit holders may use any data source for determining the results of tier 2 bets until the data feed becomes available on commercially reasonable terms.
3266	3262
3267	3263		2. A permit holder demonstrates to the Commission that the sports governing body has not provided or offered to provide a feed of official league data to such permit holder on commercially reasonable terms, according to criteria identified in subsection D.
3268	3264
3269	3265		D. The Commissioner shall consider the following information in determining whether a sports governing body has provided or offered to provide a feed of official league data on commercially reasonable terms:
3270	3266
3271	3267		1. The availability of a sports governing body's official league data for tier 2 bets from more than one authorized source;
3272	3268
3273	3269		2. Market information regarding the purchase, in Virginia and in other states, by permit holders of data from all authorized sources;
3274	3270
3275	3271		3. The nature and quantity of the data, including the quality and complexity of the process used for collecting the data; and
3276	3272
3277	3273		4. Any other information the Commissioner deems relevant.
3278	3274
3279	3275		E. During any time period in which the Commissioner is determining whether official league data is available on commercially reasonable terms pursuant to the provisions of subsections C and D, a permit holder may use any data source for determining the results of any tier 2 bets. The Commissioner shall make a determination under subsections C and D within 120 days after a permit holder notifies the Commission that it desires to demonstrate that a sports governing body has not provided or offered to provide a feed of official league data to the permit holder on commercially reasonable terms.
3280	3276
3281	3277		Article 3.
3282	3278
3283	3279		Taxation.
3284	3280
3285	3281		29.5-407. Tax on adjusted gross revenue.
3286	3282
3287	3283		A. There shall be imposed a tax of 15 percent on a permit holder's adjusted gross revenue.
3288	3284
3289	3285		B. The tax imposed pursuant to this section is due monthly to the Commission, and the permit holder shall remit it on or before the twentieth day of the next succeeding calendar month. If the permit holder's accounting necessitates corrections to a previously remitted tax, the permit holder shall document such corrections when it pays the following month's taxes.
3290	3286
3291	3287		C. If the permit holder's adjusted gross revenue for a month is a negative number, the permit holder may carry over the negative amount to a return filed for a subsequent month and deduct such amount from its tax liability for such month, provided that such amount shall not be carried over and deducted against tax liability in any month that is more than 12 months later than the month in which such amount was accrued.
3292	3288
3293	3289		29.5-408. Distribution of tax revenue.
3294	3290
3295	3291		A. The Commission shall allocate 2.5 percent of the tax revenue collected pursuant to 29.5-407 to the Problem Gambling Treatment and Support Fund established pursuant to 37.2-314.2.
3296	3292
3297	3293		B. The Commission shall allocate the remaining 97.5 percent of the tax revenue collected pursuant to 29.5-407 to the general fund.
3298	3294
3299	3295		Article 4.
3300	3296
3301	3297		Prohibited Acts; Penalties.
3302	3298
3303	3299		29.5-409. Events on which betting is prohibited; penalty.
3304	3300
3305	3301		A. 1. No person shall place or accept a bet on youth sports.
3306	3302
3307	3303		2. No person shall place or accept a proposition bet on college sports.
3308	3304
3309	3305		3. No person shall place or accept a bet on Virginia college sports.
3310	3306
3311	3307		B. 1. A sports governing body may notify the Commission that it desires to restrict, limit, or prohibit sports betting on its sporting events by providing notice in accordance with requirements prescribed by the Board. A sports governing body also may request to restrict the types of bets that may be offered. Notwithstanding 29.5-400, for purposes of this section, "sports governing body" includes any organization that is not headquartered in the United States and that otherwise meets the definition of "sports governing body."
3312	3308
3313	3309		2. For any request made pursuant to subdivision 1, the requester shall bear the burden of establishing to the satisfaction of the Commissioner that the relevant betting or other activity poses a significant and unreasonable integrity risk. The Commissioner shall seek input from affected permit holders before making a determination on such request.
3314	3310
3315	3311		3. If the Commissioner denies a request made pursuant to subdivision 1, the Commissioner shall give the requester notice and the right to be heard and offer proof in opposition to such determination in accordance with regulations established by the Board. If the Commissioner grants a request, the Board shall promulgate by regulation such restrictions, limitations, or prohibitions as may be requested.
3316	3312
3317	3313		4. A permit holder shall not offer or take any bets in violation of regulations promulgated by the Board pursuant to this subsection.
3318	3314
3319	3315		C. The prohibitions in subdivisions A 1 and A 3 shall be limited to the single game or match in which a youth sports or Virginia college sports team is a participant. The prohibitions shall not be construed to prohibit betting on other games in a tournament or multigame event in which a youth sports or Virginia college sports team participates, so long as such other games do not have a participant that is a youth sports or Virginia college sports team.
3320	3316
3321	3317		D. Any person convicted of violating this section is guilty of a Class 1 misdemeanor.
3322	3318
3323	3319		29.5-410. Underage betting prohibited; penalty.
3324	3320
3325	3321		A. No person shall knowingly accept or redeem a sports bet by, or knowingly offer to accept or redeem a sports bet on behalf of, a person under the age of 21 years.
3326	3322
3327	3323		B. Any person convicted of violating this section is guilty of a Class 1 misdemeanor.
3328	3324
3329	3325		29.5-411. Persons prohibited from sports betting; penalty.
3330	3326
3331	3327		A. The following persons shall be prohibited from sports betting:
3332	3328
3333	3329		1. The Commissioner and any Board member, officer, or employee of the Commission;
3334	3330
3335	3331		2. Any permit holder;
3336	3332
3337	3333		3. Any director, officer, owner, or employee of a permit holder and any relative living in the same household as such persons; and
3338	3334
3339	3335		4. Any officer or employee of any entity working directly on a contract with the Commission related to sports betting.
3340	3336
3341	3337		B. The persons described in subdivision A 3 shall be prohibited from sports betting only with respect to the related permit holder, but shall not be prohibited from placing sports bets with other permit holders.
3342	3338
3343	3339		C. Any competitor, coach, trainer, employee, or owner of a team in a professional or college sports event, or any referee for a professional or college sports event, shall be prohibited from placing a bet on any event in a league in which such person participates. In determining which persons are prohibited from placing wagers under this subsection, a permit holder shall use publicly available information and any lists of persons that a sports governing body may provide to the Commission.
3344	3340
3345	3341		D. Any person convicted of violating this section is guilty of a Class 1 misdemeanor.
3346	3342
3347	3343		29.5-412. Operation and advertising of unpermitted facilities prohibited; penalty.
3348	3344
3349	3345		A. No person, except for a permit holder authorized pursuant to the provisions of this chapter, shall make its premises available for placing sports bets using the Internet or advertise that its premises may be used for such purpose.
3350	3346
3351	3347		B. The Commissioner may impose a monetary penalty for each violation of this section. For a person determined to have made its premises available for placing sports bets using the Internet, the penalty shall not exceed $1,000 per day per individual who places a sports bet. For a person determined to have advertised that its premises may be used for such purpose, the penalty shall not exceed $10,000 per violation.
3352	3348
3353	3349		29.5-413. Use of the phrase "Virginia is for Bettors" prohibited; civil penalty.
3354	3350
3355	3351		A. No permit holder, or any affiliate thereof, shall use the phrase "Virginia is for Bettors" in an advertisement in association with its product or service. Any permit holder, or affiliate thereof, that violates this section shall be subject to a civil penalty of not more than $50,000. The Commissioner shall enforce the provisions of this section.
3356	3352
3357	3353		B. All civil penalties collected pursuant to this section shall accrue to the general fund.
3358	3354
3359	3355		29.5-414. Reporting and investigating prohibited conduct.
3360	3356
3361	3357		A. The Commission shall establish a hotline or other method of communication that allows any person to confidentially report information about prohibited conduct to the Commission.
3362	3358
3363	3359		B. The Commission shall investigate all reasonable allegations of prohibited conduct by a permit holder. The Commission shall refer credible allegations of prohibited conduct by any person to the appropriate law-enforcement entity.
3364	3360
3365	3361		C. The Commission shall maintain the confidentiality of the identity of any reporting person unless such person authorizes disclosure of his identity or until such time as the allegation of prohibited conduct is referred to law enforcement. If an allegation of prohibited conduct is referred to law enforcement, the Commission shall disclose a reporting person's identity only to the applicable law-enforcement agency. The identity of a reporting person shall be excluded from the provisions of 2.2-3705.7.
3366	3362
3367	3363		D. If the Commission receives a complaint of prohibited conduct by an athlete, the Commission shall notify the appropriate sports governing body of the athlete to review the complaint.
3368	3364
3369	3365		E. The Commission and permit holders shall cooperate with investigations conducted by sports governing bodies or law-enforcement agencies. Such cooperation shall include providing or facilitating the provision of account-level betting information and audio or video files relating to persons placing wagers.
3370	3366
3371	3367		29.5-415. Required direct notification to the Commission and to sports governing bodies.
3372	3368
3373	3369		A. A permit holder shall, as soon as is commercially reasonable, report to the Commission any information relating to:
3374	3370
3375	3371		1. Criminal or disciplinary proceedings commenced against the permit holder in connection with its operations in the Commonwealth or in any other jurisdiction;
3376	3372
3377	3373		2. Abnormal betting activity or patterns that may indicate a risk to the integrity of a bet or wager;
3378	3374
3379	3375		3. Any potential breach of a sports governing body's rules and codes of conduct pertaining to sports betting, to the extent that such rules and codes of conduct are provided to and known by the permit holder;
3380	3376
3381	3377		4. Any conduct that may alter the outcome of an athletic event for purposes of financial gain, including match fixing; and
3382	3378
3383	3379		5. Suspicious or illegal wagering activities, including using funds derived from illegal activity to place bets, using bets to conceal or launder funds derived from illegal activity, using agents to place bets, and using false identification to place bets.
3384	3380
3385	3381		B. A permit holder shall, as soon as is commercially practicable, report the information described in subdivisions A 2, 3, and 4 to any sports governing body that may be affected by the activities described in subdivisions A 2, 3, and 4.
3386	3382
3387	3383		29.5-416. Liquidity pools.
3388	3384
3389	3385		The Board may promulgate rules authorizing permit holders to offset loss and manage risk, directly or with a third party approved by the Commissioner, through the use of a liquidity pool in Virginia or another jurisdiction so long as such permit holder, or an affiliate of such permit holder, is licensed by such jurisdiction to operate a sports betting business. However, a permit holder's use of a liquidity pool shall not eliminate its duty to ensure that it has sufficient funds available to pay bettors.
3390	3386
3391	3387		29.5-417. Intermediate routing of electronic data.
3392	3388
3393	3389		All sports betting shall be initiated and received within Virginia unless otherwise permitted by federal law. Consistent with the intent of the United States Congress as expressed in the Unlawful Internet Gambling Enforcement Act, 31 U.S.C. 5361 et seq., the intermediate routing of electronic data relating to lawful intrastate sports betting authorized under this chapter shall not determine the location in which such bet is initiated and received.
3394	3390
3395	3391		CHAPTER 5.
3396	3392
3397	3393		FANTASY CONTESTS.
3398	3394
3399	3395		29.5-500. Definitions.
3400	3396
3401	3397		As used in this chapter, unless the context requires otherwise:
3402	3398
3403	3399		"Confidential information" means information related to the play of a fantasy contest by fantasy contest players obtained as a result of or by virtue of a person's employment.
3404	3400
3405	3401		"Entry fee" means cash or cash equivalent that is required to be paid by a fantasy contest participant to a fantasy contest operator in order to participate in a fantasy contest.
3406	3402
3407	3403		"Fantasy contest" includes any online fantasy or simulated game or contest with an entry fee in which (i) the value of all prizes and awards offered to winning participants is established and made known to the participants in advance of the contest; (ii) all winning outcomes reflect the relative knowledge and skill of the participants and shall be determined by accumulated statistical results of the performance of individuals, including athletes in the case of sports events; and (iii) no winning outcome is based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event.
3408	3404
3409	3405		"Fantasy contest operator" or "operator" means a person or entity that offers fantasy contests for a cash prize to members of the public.
3410	3406
3411	3407		"Fantasy contest player" or "player" means a person who participates in a fantasy contest offered by a fantasy contest operator.
3412	3408
3413	3409		"Principal stockholder" means any person who individually or in concert with his spouse and immediate family members beneficially owns or controls, directly or indirectly, 15 percent or more of the equity ownership of a fantasy contest operator or who in concert with his spouse and immediate family members has the power to vote or cause the vote of 15 percent or more of the equity ownership of any such operator.
3414	3410
3415	3411		29.5-501. Registration of fantasy contest operators required; application for registration; issuance of registration certificate; penalty.
3416	3412
3417	3413		A. No fantasy contest operator shall offer any fantasy contest in the Commonwealth without first being registered with the Commission. Applications for registration shall be on forms prescribed by the Board. Any registration issued by the Commissioner shall be valid for one year from the date of issuance.
3418	3414
3419	3415		B. The application for registration submitted by a fantasy contest operator shall contain the following information:
3420	3416
3421	3417		1. The name and principal address of the applicant; if a corporation, the state of its incorporation, the full name and address of each officer and director thereof, and, if a foreign corporation, whether it is qualified to do business in the Commonwealth; if a partnership or joint venture, the name and address of each officer thereof;
3422	3418
3423	3419		2. The address of any offices of the applicant in the Commonwealth and its designated agent for process within the Commonwealth. If no such agent is designated, the applicant shall be deemed to have designated the Commissioner. If the operator does not maintain an office, the name and address of the person having custody of its financial records;
3424	3420
3425	3421		3. The place where and the date when the applicant was legally established and the form of its organization;
3426	3422
3427	3423		4. The names and addresses of the officers, directors, trustees, and principal salaried executive staff officer;
3428	3424
3429	3425		5. The name and address of each principal stockholder or member of such corporation; and
3430	3426
3431	3427		6. Such information as the Board deems necessary to ensure compliance with the provisions of this chapter.
3432	3428
3433	3429		C. Every registration filed pursuant to this chapter shall be accompanied by a nonrefundable, initial application fee set by the Board.
3434	3430
3435	3431		D. As a condition of registration, a fantasy contest operator shall submit evidence satisfactory to the Board that the operator has established and will implement procedures for fantasy contests that:
3436	3432
3437	3433		1. Prevent him or his employees and relatives living in the same household as the operator from competing in any public fantasy contest offered by such operator in which the operator offers a cash prize;
3438	3434
3439	3435		2. Prevent the sharing of confidential information that could affect fantasy contest play with third parties until the information is made publicly available;
3440	3436
3441	3437		3. Verify that any fantasy contest player is 18 years of age or older;
3442	3438
3443	3439		4. Ensure that players who are the subject of a fantasy contest are restricted from entering a fantasy contest that is determined, in whole or part, on the accumulated statistical results of a team of individuals in which such players are participants;
3444	3440
3445	3441		5. Allow individuals to restrict themselves from entering a fantasy contest upon request and take reasonable steps to prevent those individuals from entering the operator's fantasy contests;
3446	3442
3447	3443		6. Disclose the number of entries a single fantasy contest player may submit to each fantasy contest and take reasonable steps to prevent such players from submitting more than the allowable number; and
3448	3444
3449	3445		7. Segregate player funds from operational funds in separate accounts and maintain a reserve in the form of cash, cash equivalents, irrevocable letter of credit, bond, or a combination thereof in an amount sufficient to pay all prizes and awards offered to winning participants.
3450	3446
3451	3447		E. If the registration forms are filed online using a website approved by the Commissioner, the operator shall follow the procedures on that website for signing the forms.
3452	3448
3453	3449		F. Any operator that allows its registration to lapse, without requesting an extension of time to file, shall be required to resubmit an initial registration. An extension may be granted by the Commissioner upon receipt of a written request.
3454	3450
3455	3451		29.5-502. Issuance of registration; denial of same.
3456	3452
3457	3453		A. The Commissioner shall consider all applications for registration and shall issue a valid registration to an applicant that meets the criteria set forth in this chapter.
3458	3454
3459	3455		B. The Commissioner shall deny registration to any applicant unless it finds that:
3460	3456
3461	3457		1. If the corporation is a stock corporation, such stock is fully paid and nonassessable and has been subscribed and paid for only in cash or property to the exclusion of past services and, if the corporation is a nonstock corporation, that there are at least five members;
3462	3458
3463	3459		2. All principal stockholders or members have submitted to the jurisdiction of the courts of the Commonwealth for the purposes of this chapter, and all nonresident principal stockholders or members have designated the Commissioner as their agent for receipt of process;
3464	3460
3465	3461		3. The applicant's articles of incorporation provide that the corporation may, on vote of a majority of the stockholders or members, purchase at fair market value the entire membership interest of any stockholder or require the resignation of any member who is or becomes unqualified for such position under subsection C; and
3466	3462
3467	3463		4. The applicant meets the criteria established by the Board for the granting of registration.
3468	3464
3469	3465		C. The Commissioner may deny registration to an applicant if he finds that the applicant, or any officer, partner, principal stockholder, or director of the applicant:
3470	3466
3471	3467		1. Has knowingly made a false statement of material fact or has deliberately failed to disclose any information requested;
3472	3468
3473	3469		2. Is or has been found guilty of any illegal, corrupt, or fraudulent act, practice, or conduct in connection with any fantasy contest in this or any other state or has been convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust within the 10 years prior to the date of application for registration;
3474	3470
3475	3471		3. Has at any time knowingly failed to comply with the provisions of this chapter or of any requirements of the Board;
3476	3472
3477	3473		4. Has had a registration or permit to hold or conduct fantasy contests denied for just cause, suspended, or revoked in any other state or country;
3478	3474
3479	3475		5. Has legally defaulted in the payment of any obligation or debt due to the Commonwealth; or
3480	3476
3481	3477		6. Is not qualified to do business in the Commonwealth or is not subject to the jurisdiction of the courts of the Commonwealth.
3482	3478
3483	3479		D. Any operator applying for registration or renewal of a registration may operate during the application period unless the Commissioner has reasonable cause to believe that such operator is or may be in violation of the provisions of this chapter and the Commissioner requires such operator to suspend the operation of any fantasy contest until registration or renewal of registration is issued.
3484	3480
3485	3481		E. The Commissioner shall issue such registration within 60 days of receipt of the application for registration. If the registration is not issued, the Commissioner shall provide the operator with specific justification for not issuing such registration.
3486	3482
3487	3483		29.5-503. Independent audit required; submission to Commission.
3488	3484
3489	3485		A registered operator shall (i) annually contract with a certified public accountant to conduct an independent audit, consistent with the standards accepted by the Board of Accountancy; (ii) annually contract with a testing laboratory recognized by the Commission to verify compliance with the provisions of subsection D of 29.5-501; and (iii) submit to the Commission a copy of the (a) audit report and (b) report of the testing laboratory as required by clause (ii).
3490	3486
3491	3487		29.5-504. Powers and duties of the Board and the Commission.
3492	3488
3493	3489		A. The Commission shall have all powers and duties necessary to carry out the provisions of this chapter. The Board may establish procedures deemed necessary to carry out the provisions of this chapter.
3494	3490
3495	3491		B. Whenever it appears to the Commission that any person has violated any provision of this chapter, it may apply to the appropriate circuit court for an injunction against such person. The order granting or refusing such injunction shall be subject to appeal as in other cases in equity.
3496	3492
3497	3493		C. Whenever the Commission has reasonable cause to believe that a violation of this chapter may have occurred, the Commission, upon its own motion or upon complaint of any person, may investigate any fantasy contest operator to determine whether such operator has violated the provisions of this chapter. In the conduct of such investigation, the Commission may:
3498	3494
3499	3495		1. Require or permit any person to file a statement in writing, under oath or otherwise as the Commission determines, as to all facts and circumstances concerning the matter to be investigated; and
3500	3496
3501	3497		2. Administer oaths or affirmations and, upon its own motion or upon request of any party, subpoena witnesses and compel their attendance, take evidence, and require the production of any matter that is relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangibles and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence.
3502	3498
3503	3499		D. Any proceedings or hearings by the Commission under this chapter, where witnesses are subpoenaed and their attendance is required for evidence to be taken or any matter is to be produced to ascertain material evidence, shall take place within the City of Richmond.
3504	3500
3505	3501		E. Upon failure to obey a subpoena and upon reasonable notice to all persons affected thereby, the Commission may apply to the Circuit Court of the City of Richmond for an order imposing punishment for contempt of the subpoena or compelling compliance.
3506	3502
3507	3503		29.5-505. Suspension or revocation of registration.
3508	3504
3509	3505		A. After a hearing with 15 days' notice, the Commissioner may suspend or revoke any registration or impose on such operator a monetary penalty of not more than $1,000 for each violation of this chapter, not to exceed $50,000, in any case where a violation of this chapter has been shown by a preponderance of the evidence. The Commissioner may revoke a registration if he finds that facts not known by him at the time he considered the application indicate that such registration should not have been issued.
3510	3506
3511	3507		B. The Commissioner may summarily suspend any registration for a period of not more than seven days pending a hearing and final determination by the Commission if the Commissioner determines that a violation of this chapter has occurred and emergency action is required to protect the public health, safety, and welfare. The Commission shall (i) schedule a hearing within seven business days after the registration is summarily suspended and (ii) notify the registered operator not less than five business days before the hearing of the date, time, and place of the hearing.
3512	3508
3513	3509		C. If any such registration is suspended or revoked, the Commissioner shall state his reasons for doing so, which shall be entered of record. Such action shall be final unless appealed in accordance with 29.5-506. Suspension or revocation of a registration issued by the Commissioner for any violation shall not preclude civil liability for such violation.
3514	3510
3515	3511		29.5-506. Hearing and appeal.
3516	3512
3517	3513		Any person aggrieved by a denial of the Commissioner to issue a registration, the suspension or revocation of a registration, the imposition of a fine, or any other action of the Commission may seek review of such action in accordance with Article 5 ( 2.2-4025 et seq.) of the Administrative Process Act in the Circuit Court of the City of Richmond. Further appeals shall also be in accordance with Article 5 ( 2.2-4025 et seq.) of the Administrative Process Act.
3518	3514
3519	3515		29.5-507. Fees and charges.
3520	3516
3521	3517		All fees, charges, and monetary penalties collected by the Commission as provided in this chapter shall be paid into a special fund of the state treasury. Such funds shall be used to finance the administration and operation of this chapter.
3522	3518
3523	3519		29.5-508. Commission to adjust fees; certain transfer of money collected prohibited.
3524	3520
3525	3521		A. Nongeneral funds generated by fees collected in accordance with this chapter on behalf of the Commission and accounted for and deposited into a special fund by the Commissioner shall be held exclusively to cover the expenses of the Commission in administering this chapter and shall not be transferred to any other agency.
3526	3522
3527	3523		B. Following the close of any biennium, when the account for the Commission maintained under this chapter shows expenses allocated to it for the past biennium to be more than 10 percent greater or less than moneys collected on behalf of the Commission, it shall revise the fees levied by it for registration and renewal thereof so that the fees are sufficient but not excessive to cover expenses.
3528	3524
3529	3525		29.5-509. Public inspection of information filed with the Commission; charges for production.
3530	3526
3531	3527		A. Except as provided in subsection B, registrations required to be filed under this chapter shall be open to the public for inspection at such time and under such conditions as the Board may prescribe. A charge not exceeding $1 per page may be made for any copy of such documents as may be furnished to any person by the Commission.
3532	3528
3533	3529		B. Reports, data, or documents submitted to the Commission pursuant to the audit requirements of 29.5-503 and records submitted to the Commission as part of an application for registration or renewal that contain information about the character or financial responsibility of the operator or its principal stockholders shall be deemed confidential and shall be exempt from disclosure under the Virginia Freedom of Information Act ( 2.2-3700 et seq.).
3534	3530
3535	3531		29.5-510. Registration not endorsement.
3536	3532
3537	3533		No registered operator shall use or exploit the fact of registration under this chapter so as to lead the public to believe that such registration in any manner constitutes an endorsement or approval by the Commonwealth.
3538	3534
3539	3535		29.5-511. Acquisition of interest in fantasy contest operator.
3540	3536
3541	3537		A. If any person acquires actual control of a registered operator, such person shall register with the Commission in accordance with 29.5-501.
3542	3538
3543	3539		B. Where any such acquisition of control is without prior approval of the Commissioner, the Commissioner may suspend any registration it has issued to such operator, order compliance with this section, or take such other action as may be appropriate within the authority of the Commissioner.
3544	3540
3545	3541		29.5-512. Civil penalty.
3546	3542
3547	3543		In addition to the provisions of 29.5-505, any person, firm, corporation, association, agent, or employee who knowingly violates any procedure implemented under subsection D of 29.5-501 or any other provision of this chapter shall be liable for a civil penalty of not more than $1,000 for each such violation. Such amount shall be recovered in a civil action brought by the Commission and be paid into the Literary Fund.
3548	3544
3549	3545		29.5-513. Fantasy contests conducted under this chapter not illegal gambling.
3550	3546
3551	3547		A. Nothing contained in Article 1 ( 18.2-325 et seq.) of Chapter 8 of Title 18.2 shall be applicable to a fantasy contest conducted in accordance with this chapter. The award of any prize money for any fantasy contest shall not be deemed to be part of any gaming contract within the purview of 11-14.
3552	3548
3553	3549		B. This section shall not apply to any sports betting or related activity that is lawful under Chapter 4 ( 29.5-400 et seq.), which shall be regulated pursuant to such chapter.
3554	3550
3555	3551		29.5-514. Liability imposed by other laws not decreased.
3556	3552
3557	3553		Except as provided in 29.5-513, nothing contained in this chapter shall be construed as making lawful any act or omission that is now unlawful, or as decreasing the liability, civil or criminal, of any person, imposed by existing laws.
3558	3554
3559	3555		CHAPTER 6.
3560	3556
3561	3557		LIVE HORSE RACING, HISTORICAL HORSE RACING, AND SIMULCAST HORSE RACING WITH PARI-MUTUEL WAGERING.
3562	3558
3563	3559		Article 1.
3564	3560
3565	3561		General Provisions.
3566	3562
3567	3563		29.5-600. Control of live horse racing, historical horse racing, and simulcast horse racing with pari-mutuel wagering.
3568	3564
3569	3565		A. Horse racing with pari-mutuel wagering licensed pursuant to this chapter is permitted in the Commonwealth for the promotion, sustenance, and growth of a native industry, in a manner consistent with the health, safety, and welfare of the people. The Virginia Gaming Commission is vested with (i) plenary power and control of all historical horse racing and simulcast horse racing with pari-mutuel wagering in the Commonwealth and (ii) power to prescribe regulations and conditions under which live horse racing with pari-mutuel wagering shall be conducted, with the advice and in consultation with the Virginia Racing Commission established pursuant to 29.5-602, so as to maintain horse racing in the Commonwealth of the highest quality and free of any corrupt, incompetent, dishonest, or unprincipled practices and to maintain in such racing complete honesty and integrity. The Virginia Gaming Commission shall encourage participation by local individuals and businesses in those activities associated with horse racing.
3570	3566
3571	3567		B. The conduct of any horse racing with pari-mutuel wagering, participation in such horse racing or wagering, and entrance to any place where such racing or wagering is conducted is a privilege that may be granted or denied by the Commission or its duly authorized representatives in its discretion in order to effectuate the purposes set forth in this chapter.
3572	3568
3573	3569		C. The award of any prize money for any pari-mutuel wager placed at a racetrack or satellite facility licensed by the Commission shall not be construed as a part of any gaming contract within the purview of 11-14.
3574	3570
3575	3571		D. This section shall not apply to any sports betting or related activity that is lawful under Chapter 3 ( 29.5-300 et seq.) or 4 ( 29.5-400 et seq.), which shall be regulated pursuant to such chapters.
3576	3572
3577	3573		29.5-601. Definitions.
3578	3574
3579	3575		As used in this chapter, unless the context requires a different meaning:
3580	3576
3581	3577		"Advance deposit account wagering" means a method of pari-mutuel wagering conducted in the Commonwealth that is permissible under the Interstate Horseracing Act, 15 U.S.C. 3001 et seq., and in which an individual may establish an account with an entity, licensed by the Commission, to place pari-mutuel wagers in person or electronically.
3582	3578
3583	3579		"Breakage" means the odd cents by which the amount payable on each dollar wagered exceeds a multiple of $0.10.
3584	3580
3585	3581		"Commission" or "Gaming Commission" means the Virginia Gaming Commission established pursuant to 29.5-101.
3586	3582
3587	3583		"Dependent" means a son, daughter, father, mother, brother, sister, or other person, whether or not related by blood or marriage, if such person receives from an officer or employee more than one-half of his financial support.
3588	3584
3589	3585		"Drug" means the same as that term is defined in 54.1-3401. The Board shall, by regulation, define and designate those drugs the use of which is prohibited or restricted.
3590	3586
3591	3587		"Enclosure" means all areas of the property of a track to which admission can be obtained only by payment of an admission fee or upon presentation of authorized credentials, and any additional areas designated by the Racing Commission.
3592	3588
3593	3589		"Handle" means the total amount of all pari-mutuel wagering sales excluding refunds and cancellations.
3594	3590
3595	3591		"Historical horse racing" means a form of horse racing that creates pari-mutuel pools from wagers placed on previously conducted horse races and is hosted at (i) a racetrack owned or operated by a significant infrastructure limited licensee or (ii) a satellite facility that is owned or operated by (a) a significant infrastructure limited licensee or (b) the nonprofit industry stakeholder organization recognized by the Commission and licensed to own or operate such satellite facility.
3596	3592
3597	3593		"Horse racing" or "live horse racing" means a competition on a set course involving a race between horses on which pari-mutuel wagering is permitted.
3598	3594
3599	3595		"Immediate family" means (i) a spouse and (ii) any other person residing in the same household as an officer or employee, who is a dependent of the officer or employee or of whom the officer or employee is a dependent.
3600	3596
3601	3597		"Licensee" includes any person holding an owner's or operator's license pursuant to this chapter.
3602	3598
3603	3599		"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.
3604	3600
3605	3601		"Pari-mutuel wagering" means the system of wagering on horse races 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, plus any amounts provided by a licensee, less deductions required or permitted by law and includes pari-mutuel wagering on historical horse racing and simulcast horse racing originating within the Commonwealth or from any other jurisdiction.
3606	3602
3607	3603		"Participant" means any person who (i) has an ownership interest in any horse entered to race in the Commonwealth or who acts as the trainer, jockey, or driver of any horse entered to race in the Commonwealth or (ii) takes part in any horse racing subject to the jurisdiction of the Commission or in the conduct of a race meeting or pari-mutuel wagering there, including a horse owner, trainer, jockey, or driver, groom, stable foreman, valet, veterinarian, agent, pari-mutuel employee, concessionaire or employee thereof, track employee, or other position the Commission deems necessary to regulate to ensure the integrity of horse racing in Virginia.
3608	3604
3609	3605		"Permit holder" includes any person holding a permit to participate in any horse racing subject to the jurisdiction of the Commission or in the conduct of a race meeting or pari-mutuel wagering thereon as provided in 29.5-628.
3610	3606
3611	3607		"Person" means any individual, group of individuals, firm, company, corporation, partnership, business, trust, association, or other legal entity.
3612	3608
3613	3609		"Pool" means the amount wagered during a race meeting or during a specified period of a race meeting.
3614	3610
3615	3611		"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 that 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. However, "principal stockholder" shall not include a broker-dealer registered under the Securities Exchange Act of 1934, as amended, which holds in inventory shares for sale on the financial markets for a publicly traded corporation holding, directly or indirectly, a license from the Commission.
3616	3612
3617	3613		"Race meeting" means the whole consecutive period of time during which horse racing with pari-mutuel wagering is conducted by a licensee.
3618	3614
3619	3615		"Racetrack" means an outdoor course located in the Commonwealth that is laid out for horse racing and is licensed by the Commission.
3620	3616
3621	3617		"Racing Commission" means the Virginia Racing Commission established pursuant to 29.5-602.
3622	3618
3623	3619		"Recognized majority horsemen's group" means the organization recognized by the Racing Commission as the representative of the majority of owners and trainers racing at race meetings subject to the Gaming Commission's jurisdiction.
3624	3620
3625	3621		"Retainage" means the total amount deducted from the pari-mutuel wagering pool for (i) a license fee to the Commission and localities, (ii) the licensee, (iii) purse money for the participants, (iv) the Virginia Breeders Fund, and (v) certain enumerated organizations as required or permitted by law, regulation, or contract approved by the Commission.
3626	3622
3627	3623		"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.
3628	3624
3629	3625		"Significant infrastructure facility" means a horse racing facility that has been approved by a local referendum pursuant to 29.5-632 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.
3630	3626
3631	3627		"Significant infrastructure limited licensee" means a person who owns or operates a significant infrastructure facility and holds a limited license under 29.5-616.
3632	3628
3633	3629		"Simulcast horse racing" means the simultaneous transmission of the audio or video portion, or both, of horse races from a licensed horse racetrack or satellite facility to another licensed horse racetrack or satellite facility, regardless of state of licensure, whether such races originate within the Commonwealth or any other jurisdiction, by satellite communication devices, television cables, telephone lines, or any other means for the purposes of conducting pari-mutuel wagering.
3634	3630
3635	3631		"Steward" means a racing official, duly appointed by the Commission, with powers and duties prescribed by Board regulations.
3636	3632
3637	3633		"Stock" includes all classes of stock, partnership interest, membership interest, or similar ownership interest of an applicant or licensee, and any debt or other obligation of such person or an affiliated person if the Commission finds that the holder of such interest or stock derives therefrom such control of or voice in the operation of the applicant or licensee that he should be deemed an owner of stock.
3638	3634
3639	3635		"Virginia Breeders Fund" means the fund established to foster the industry of breeding race horses in the Commonwealth.
3640	3636
3641	3637		29.5-602. Virginia Racing Commission established; purpose; membership; compensation; duties.
3642	3638
3643	3639		A. The Virginia Racing Commission is established as an advisory board in state government for the purpose of advising the Virginia Gaming Commission on all aspects of the live horse racing industry in the Commonwealth. The Racing Commission shall have a total membership of five nonlegislative citizen members to be appointed by the Governor, subject to confirmation by the General Assembly. Nonlegislative citizen members shall be citizens of the Commonwealth.
3644	3640
3645	3641		Appointments to fill vacancies, other than by expiration of a term, shall be for the unexpired terms. Vacancies shall be filled in the same manner as the original appointments. All members may be reappointed.
3646	3642
3647	3643		After the initial staggering of terms, nonlegislative citizen members shall be appointed for a term of five years.
3648	3644
3649	3645		The Racing Commission shall elect a chairman and vice-chairman from among its membership. A majority of the members shall constitute a quorum. The meetings of the Racing Commission shall be held at the call of the chairman or whenever the majority of the members so request.
3650	3646
3651	3647		Members shall receive such compensation for the performance of their duties as provided in 2.2-2813. All members shall be reimbursed for all reasonable and necessary expenses incurred in the performance of their duties as provided in 2.2-2813 and 2.2-2825. Funding for the costs of compensation and expenses of the members shall be provided by the Virginia Gaming Commission.
3652	3648
3653	3649		B. The Racing Commission shall have the following powers and duties:
3654	3650
3655	3651		1. Advise the Virginia Gaming Commission on the conduct of live horse racing in the Commonwealth, including consulting with the Commission on the promulgation of all rules and regulations related to the live horse racing industry;
3656	3652
3657	3653		2. Recommend policy and legislative changes to the Commission regarding horse racing, licensure and permitting, upkeep of racetracks and stable maintenance, or other matters related to the horse racing industry;
3658	3654
3659	3655		3. Advise on other matters related to horse racing that the Commission may request or the Racing Commission may deem necessary; and
3660	3656
3661	3657		4. Keep a complete and accurate record of its proceedings. A copy of such record and any other public records not exempt from disclosure under the Virginia Freedom of Information Act ( 2.2-3700 et seq.) shall be available for public inspection and copying during regular office hours at the Commission.
3662	3658
3663	3659		29.5-603. Financial interests of Racing Commission members and family members prohibited.
3664	3660
3665	3661		No member of the Racing Commission, and no spouse or immediate family member of any such member shall have any financial interest, direct or indirect, in (i) any horse racetrack, satellite facility, or operation incident thereto subject to the provisions of this chapter; (ii) any entity that has submitted an application for a license pursuant to this chapter; (iii) the operation of any such racetrack or satellite facility within the Commonwealth; or (iv) the operation of any wagering authorized under this chapter. No member of the Racing Commission, and no spouse or immediate family member of any such member shall (a) participate as owner of a horse or otherwise as a contestant in any race subject to the jurisdiction of the Gaming Commission; (b) have any pecuniary interest in the purse or prize contested for in any such race; or (c) make any contribution to a candidate for office or office holders on the local or state level, or cause a contribution to be made on their behalf.
3666	3662
3667	3663		29.5-604. Powers and duties of the Commission.
3668	3664
3669	3665		A. The Virginia Gaming Commission shall have all powers and duties necessary to carry out the provisions of this chapter. Such powers and duties may be executed by the Virginia Gaming Commission Board, and when in regard to live horse racing, shall be executed in consultation and with the advice and consent of the Virginia Racing Commission pursuant to the provisions of 29.5-600.
3670	3666
3671	3667		B. The powers and duties of the Gaming Commission shall include the following:
3672	3668
3673	3669		1. The Commission is vested with jurisdiction and supervision over all horse racing, historical horse racing, and simulcast horse racing licensed under the provisions of this chapter including all persons conducting, participating in, or attending any race meeting. It shall employ such persons to be present at race meetings as are necessary to ensure that they are conducted with order and the highest degree of integrity. It may eject or exclude from the enclosure or from any part of such enclosure any person, whether or not he possesses a license or permit, whose conduct or reputation is such that his presence may, in the opinion of the Commission, reflect on the honesty and integrity of horse racing or interfere with the orderly conduct of horse racing.
3674	3670
3675	3671		2. The Commission, its representatives, and employees shall visit, investigate, and have free access to the office, track, facilities, satellite facilities, or other places of business of any licensee or permit holder, and may compel the production of any of the books, documents, records, or memoranda of any licensee or permit holder for the purpose of satisfying itself that this chapter and its regulations are strictly complied with. In addition, the Commission may require any person granted a permit by the Commissioner and shall require any person licensed by the Commissioner, the recognized majority horsemen's group, and the nonprofit industry stakeholder organization recognized by the Commission under this chapter to produce an annual balance sheet and operating statement prepared by a certified public accountant approved by the Commission. The Commission may require the production of any contract to which such person is or may be a party.
3676	3672
3677	3673		3. The Board shall promulgate regulations and conditions under which horse racing, historical horse racing, and simulcast horse racing with pari-mutuel wagering shall be conducted in the Commonwealth, and all such other regulations it deems necessary and appropriate to effect the purposes of this chapter, including a requirement that licensees post, in a conspicuous place in every place where pari-mutuel wagering is conducted, (i) a sign that bears a toll-free telephone number for "Gamblers Anonymous" or other organization that provides assistance to compulsive gamblers and (ii) a sign that bears the toll-free number and website for the illegal gaming tip line established and administered by the Office of the Gaming Enforcement Coordinator in the Department of State Police pursuant to 52-54 for members of the public to report concerns about, or suspected instances of, illegal gaming activities. Such regulations shall include provisions for affirmative action to assure participation by minority persons in contracts granted by the Commission and its licensees. Nothing in this subdivision shall be deemed to preclude private local ownership or participation in any horse racetrack. Such regulations may include penalties for violations. The regulations shall be subject to the Administrative Process Act ( 2.2-4000 et seq.).
3678	3674
3679	3675		4. The Board shall promulgate regulations and conditions under which simulcast horse racing shall be conducted at a licensed horse racetrack or satellite facility in the Commonwealth and all such other regulations it deems necessary and appropriate to effect the purposes of this chapter. Such regulations shall include provisions that all simulcast horse racing shall comply with the Interstate Horse Racing Act of 1978 (15 U.S.C. 3001 et seq.) and shall require the holder of a license to schedule no more than 125 live racing days in the Commonwealth each calendar year; however, the Racing Commission shall have the authority to alter the required number of live racing days in the event of force majeure. Such regulations shall authorize up to 10 satellite facilities and restrict majority ownership of satellite facilities to an entity licensed by the Commissioner that is a significant infrastructure limited licensee, or if by August 1, 2015, there is no such licensee or a pending application for such license, then the nonprofit industry stakeholder organization recognized by the Commission may be granted licenses to own or operate satellite facilities. If, however, after the issuance of a license to own or operate a satellite facility to such nonprofit industry stakeholder organization, the Commissioner grants a license to a significant infrastructure limited licensee pursuant to 29.5-616, then such limited licensee may own or operate the remaining available satellite facilities authorized in accordance with this subdivision. In no event shall the Commission authorize any such entities to own or operate more than a combined total of 10 satellite facilities. Nothing in this subdivision shall be deemed to preclude private local ownership or participation in any satellite facility. Except as authorized pursuant to subdivision 5, wagering on simulcast horse racing shall take place only at a licensed horse racetrack or satellite facility. For purposes of this subdivision, "force majeure" means an event or events reasonably beyond the ability of the Racing Commission to anticipate and control. "Force majeure" includes acts of God, incidences of terrorism, war or riots, labor strikes or civil disturbances, floods, earthquakes, fire, explosions, epidemics, hurricanes, tornadoes, and governmental actions and restrictions.
3680	3676
3681	3677		5. The Board shall promulgate regulations and conditions regulating and controlling advance deposit account wagering. Such regulations shall include (i) standards, qualifications, and procedures for the issuance of a license to an entity for the operation of pari-mutuel wagering in the Commonwealth, except that the Commissioner shall not issue a license to, and shall revoke the license of, an entity that, either directly or through an entity under common control with it, withholds the sale at fair market value to a licensee of simulcast horse racing signals that such entity or an entity under common control with it sells to other racetracks, satellite facilities, or advance deposit account wagering providers located in or outside of the Commonwealth; (ii) provisions regarding access to books, records, and memoranda, and submission to investigations and audits, as authorized by subdivisions 2 and 10; and (iii) provisions regarding the collection of all revenues due to the Commonwealth from the placing of such wagers. No pari-mutuel wager may be made on or with any computer owned or leased by the Commonwealth, or any of its subdivisions, or at any public elementary or secondary school or institution of higher education. The Commission also shall ensure that, except for this method of pari-mutuel wagering, all wagering on simulcast horse racing shall take place only at a licensed horse racetrack or satellite facility.
3682	3678
3683	3679		Nothing in this subdivision shall be construed to limit the Commission's authority as set forth elsewhere in this section.
3684	3680
3685	3681		6. The Board may issue subpoenas for the attendance of witnesses before it, administer oaths, and compel production of records or other documents and testimony of such witnesses whenever, in the judgment of the Board, it is necessary to do so for the effectual discharge of its duties.
3686	3682
3687	3683		7. The Board may compel any person holding a license or permit to file with the Commission such data as shall appear to the Board to be necessary for the performance of its duties including financial statements and information relative to stockholders and all others with any pecuniary interest in such person. It may prescribe the manner in which books and records of such persons shall be kept.
3688	3684
3689	3685		8. The Commission shall report annually on or before March 1 to the Governor and the General Assembly, which report shall include a financial statement of the operation of the Commission.
3690	3686
3691	3687		9. The Commission may order such audits, in addition to those required by 29.5-610, as it deems necessary and desirable.
3692	3688
3693	3689		10. The Commission, shall upon the receipt of a complaint of an alleged criminal violation of this chapter, immediately report the complaint to the Attorney General and the Office of the Gaming Enforcement Coordinator at the Department of State Police pursuant to 52-54 for appropriate action.
3694	3690
3695	3691		11. The Commission shall provide for the withholding of the applicable amount of state and federal income tax of persons claiming a prize or pay-off for a winning wager and shall establish the thresholds for such withholdings.
3696	3692
3697	3693		12. The Commission, its representatives, and employees may, within the enclosure, stable, or other facility related to the conduct of horse racing, and during regular or usual business hours, subject any (i) permit holder to personal inspections, including alcohol and drug testing for illegal drugs, inspections of personal property, and inspections of other property or premises under the control of such permit holder and (ii) horse eligible to race at a race meeting licensed by the Commission to testing for substances foreign to the natural horse within the racetrack enclosure or other place where such horse is kept. Any item, document, or record indicative of a violation of any provision of this chapter or Board regulations may be seized as evidence of such violation. All permit holders consent to the searches and seizures authorized by this subdivision, including breath, blood, and urine sampling for alcohol and illegal drugs, by accepting the permit issued by the Commissioner. The Commissioner may revoke or suspend the permit of any person who fails or refuses to comply with this subdivision or any rules of the Commission. Board regulations in effect on July 1, 1998, shall continue in full force and effect until modified by the Board in accordance with law.
3698	3694
3699	3695		13. The Commission shall require the existence of a contract between each licensee and the recognized majority horsemen's group for that licensee. Such contract shall be subject to the approval of the Board, which shall have the power to approve or disapprove any of its items, including the provisions regarding purses and prizes. Such contracts shall provide that on pools generated by wagering on simulcast horse racing from outside the Commonwealth, (i) for the first $75 million of the total pari-mutuel handle for each breed, the licensee shall deposit funds at the minimum rate of five percent in the horsemen's purse account; (ii) for any amount in excess of $75 million but less than $150 million of the total pari-mutuel handle for each breed, the licensee shall deposit funds at the minimum rate of six percent in the horsemen's purse account; and (iii) for amounts in excess of $150 million for each breed, the licensee shall deposit funds at the minimum rate of seven percent in the horsemen's purse account. Such deposits shall be made in the horsemen's purse accounts of the breed that generated the pools and such deposits shall be made within five days from the date on which the licensee receives wagers. In the absence of the required contract between the licensee and the recognized majority horsemen's group, the Board may permit wagering to proceed on simulcast horse racing from outside of the Commonwealth, provided that the licensee deposits into the Horse Racing Operations Fund created pursuant to 29.5-606 an amount equal to the minimum percentage of the total pari-mutuel handles as required in clauses (i), (ii), and (iii) or such lesser amount as the Board may approve. The deposits shall be made within five days from the date on which the licensee receives wagers. Once a contract between the licensee and the recognized majority horsemen's group is executed and approved by the Board, the Commission shall transfer these funds to the licensee and the horsemen's purse accounts.
3700	3696
3701	3697		14. Notwithstanding the provisions of 29.5-632, the Commissioner may grant provisional limited licenses or provisional unlimited licenses to own or operate racetracks or satellite facilities to an applicant prior to the applicant securing the approval through the local referendum required by 29.5-632. The provisional licenses issued by the Commissioner shall only become effective upon the approval of the racetrack or satellite wagering facilities in a referendum conducted pursuant to 29.5-632 in the jurisdiction in which the racetrack or satellite wagering facility is to be located.
3702	3698
3703	3699		15. The Board shall promulgate regulations requiring, for each calendar year, any significant infrastructure limited licensee that offers pari-mutuel wagering on historical horse racing to hold at least one live Thoroughbred horse racing day, consisting of not less than eight races per day, for every 100 historical horse racing terminals installed at its significant infrastructure facility together with any satellite facility owned, operated, controlled, managed, or otherwise directly or indirectly affiliated with such licensee. The regulations shall require any such significant infrastructure limited licensee that holds more than one live Thoroughbred horse racing day in accordance with the provisions of this subdivision to hold at least one of those racing days on a weekend. The number of historical horse racing terminals installed at a significant infrastructure facility shall be calculated as of December 31 of the calendar year in question; however, only historical horse racing terminals that are fully operational shall be included in such calculation.
3704	3700
3705	3701		29.5-605. Staff; stewards.
3706	3702
3707	3703		A. The Commission shall appoint such employees as it deems essential to perform its duties under this chapter, who shall possess such authority and perform such duties as the Commission shall prescribe or delegate to them. Such employees may include stewards, chemists, veterinarians, inspectors, accountants, guards, and such other employees deemed by the Commission to be necessary for the supervision and the proper conduct of the highest standard of horse racing. Such employees shall be compensated as provided by the Commission.
3708	3704
3709	3705		B. The stewards appointed by the Executive Secretary in accordance with 29.5-105 shall act as racing officials to oversee the conduct of (i) horse racing at licensed racetracks and (ii) simulcast horse racing at satellite facilities. The stewards shall have the authority to interpret and enforce the Board's regulations and to decide all questions of horse racing and simulcast horse racing not specifically covered by the regulations of the Board. Nothing in this subsection shall limit the authority of the Commission to carry out the provisions of this chapter and to exercise control of horse racing as set forth in this chapter, including the power to review all decisions and rulings of the stewards.
3710	3706
3711	3707		29.5-606. Horse Racing Operations Fund.
3712	3708
3713	3709		There is hereby created in the state treasury a special nonreverting fund to be known as the Horse Racing Operations Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All moneys and revenues received by the Virginia Gaming Commission pursuant to the provisions of this chapter shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the operation and administration of this chapter by the Virginia Gaming Commission. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Commissioner.
3714	3710
3715	3711		29.5-607. Fingerprints and background investigations; investigations from other states.
3716	3712
3717	3713		A. The Commission shall fingerprint and require a background investigation, including a criminal history record information check, conducted by a representative of a law-enforcement agency of the Commonwealth or federal government of the following persons: (i) every person licensed to hold race meetings within the Commonwealth; (ii) every person who is an officer, director, or principal stockholder of a corporation that holds such a license, and every employee of the holder of any such license whose duties relate to the horse racing business in the Commonwealth; (iii) all security personnel of any license holder; (iv) members and employees of the Virginia Gaming Commission; (v) all permit holders, owners, trainers, jockeys, apprentices, stable employees, managers, agents, blacksmiths, veterinarians, and employees of any licensee or permit holder; and (vi) any person who actively participates in the horse racing activities of any licensee or permit holder.
3718	3714
3719	3715		B. Notwithstanding the provisions of subsection A, the Board may (i) by regulation, establish a procedure to recognize a license or permit issued by another state in which horse racing is authorized when the Board, in its discretion, determines that (a) the laws or requirements of the licensing authority for such state governing fingerprinting and background investigations are substantially the same as required under this chapter and Board regulations and (b) the applicant has not been convicted of an offense as provided in subsection C of 29.5-630 and (ii) waive the requirements for fingerprinting and background investigations for permit holders participating in (a) horse racing in nonsecure areas or (b) nonracing activities.
3720	3716
3721	3717		29.5-608. Hearing and appeal.
3722	3718
3723	3719		Any person aggrieved by (i) a refusal of the Commissioner to issue any license or permit, (ii) the suspension or revocation of a license or permit, (iii) the imposition of a fine, or (iv) any other action of the Commission or Board pursuant to this chapter, may seek review of such action in accordance with Article 5 ( 2.2-4025 et seq.) of the Administrative Process Act in the Circuit Court of the City of Richmond, and any further appeals shall also be in accordance with such article.
3724	3720
3725	3721		29.5-609. Injunction.
3726	3722
3727	3723		Whenever it appears to the Commission that any person has violated or may violate any provision of this chapter, any Board regulation, or final decision of the Commission, it may apply to the appropriate circuit court for an injunction against such person. The order granting or refusing such injunction shall be subject to appeal as in other cases in equity.
3728	3724
3729	3725		29.5-610. Audit required.
3730	3726
3731	3727		A regular post-audit shall be conducted of all accounts and transactions of the Commission. An audit of a fiscal and compliance nature of the accounts and transactions of the Commission shall be conducted by the Auditor of Public Accounts as determined necessary by the Auditor of Public Accounts. The cost of the audit and post-audit examinations shall be paid by the Commission.
3732	3728
3733	3729		29.5-611. Virginia Breeders Fund.
3734	3730
3735	3731		There is hereby created within the State Treasury the Virginia Breeders Fund, referred to in this section as "the Fund," which Fund, together with the interest thereon, shall be administered in whole or in part by the Commission or by an entity designated by the Commission. The cost of administering and promoting the Fund shall be deducted from the Fund, and the balance shall be disbursed by the Commission or designated entity to the breeders of Virginia-bred horses that finish first, second, or third in races at race meetings designated by the Commission, to the owners of Virginia sires of Virginia-bred horses that finish first, second, or third in races at race meetings designated by the Commission, to the owners of Virginia-bred horses that win or earn purse money in nonrestricted races at racetracks in Virginia licensed by the Commission, to the owners of Virginia-bred horses that win races at race meetings designated by the Commission, and for purses for races restricted to Virginia-bred or Virginia-sired horses or both at race meetings designated by the Commission. To assist the Commission in establishing this awards and incentive program to foster the industry of breeding racehorses in Virginia, the Board shall appoint an advisory committee composed of two members from each of the registered breed associations representing each breed of horse participating in the Fund program, one member representing the owners and operators of racetracks, and one member representing all of the meets sanctioned by the National Steeplechase Association.
3736	3732
3737	3733		Article 2.
3738	3734
3739	3735		Live Horseracing Compact.
3740	3736
3741	3737		29.5-612. Live Horseracing Compact; form of compact.
3742	3738
3743	3739		The Live Horseracing Compact is enacted into law and entered into with all other jurisdictions legally joining therein in the form substantially as follows:
3744	3740
3745	3741		ARTICLE I. Purposes.
3746	3742
3747	3743		1. Purposes.
3748	3744
3749	3745		The purposes of this compact are to:
3750	3746
3751	3747		1. Establish uniform requirements among the party states for the licensing of participants in live horse racing with pari-mutuel wagering, and ensure that all such participants who are licensed pursuant to this compact meet a uniform minimum standard of honesty and integrity.
3752	3748
3753	3749		2. Facilitate the growth of the horse racing industry in each party state and nationwide by simplifying the process for licensing participants in live racing, and reduce the duplicative and costly process of separate licensing by the regulatory agency in each state that conducts live horse racing with pari-mutuel wagering.
3754	3750
3755	3751		3. Authorize the Virginia Gaming Commission to participate in this compact.
3756	3752
3757	3753		4. Provide for participation in this compact by officials of the party states, and permit those officials, through the compact committee established by this compact, to enter into contracts with governmental agencies and nongovernmental persons to carry out the purposes of this compact.
3758	3754
3759	3755		5. Establish the compact committee created by this compact as an interstate governmental entity duly authorized to request and receive criminal history record information from the Federal Bureau of Investigation and other state and local law-enforcement agencies.
3760	3756
3761	3757		ARTICLE II. Definitions.
3762	3758
3763	3759		2. Definitions.
3764	3760
3765	3761		"Compact committee" means the organization of officials from the party states that is authorized and empowered by this compact to carry out the purposes of this compact.
3766	3762
3767	3763		"Official" means the appointed, elected, designated, or otherwise duly selected representative of a racing commission or the equivalent thereof in a party state who represents that party state as a member of the compact committee.
3768	3764
3769	3765		"Participants in live racing" means participants in live horse racing with pari-mutuel wagering in the party states.
3770	3766
3771	3767		"Party state" means each state that has enacted this compact.
3772	3768
3773	3769		"State" means each of the several states of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and each territory or possession of the United States.
3774	3770
3775	3771		ARTICLE III. Entry into Force, Eligible Parties, and Withdrawal.
3776	3772
3777	3773		3. Entry into force.
3778	3774
3779	3775		This compact shall come into force when enacted by any four states. Thereafter, this compact shall become effective as to any other state upon (i) that state's enactment of this compact and (ii) the affirmative vote of a majority of the officials on the compact committee as provided in 8.
3780	3776
3781	3777		4. States eligible to join compact.
3782	3778
3783	3779		Any state that has adopted or authorized horse racing with pari-mutuel wagering shall be eligible to become party to this compact.
3784	3780
3785	3781		5. Withdrawal from compact and impact thereof on force and effect of compact.
3786	3782
3787	3783		Any party state may withdraw from this compact by enacting a statute repealing this compact, but no such withdrawal shall become effective until the head of the executive branch of the withdrawing state has given notice in writing of such withdrawal to the head of the executive branch of all other party states. If as a result of withdrawals participation in this compact decreases to less than three party states, this compact no longer shall be in force and effect unless and until there are at least three or more party states again participating in this compact.
3788	3784
3789	3785		ARTICLE IV. Compact Committee.
3790	3786
3791	3787		6. Compact committee established.
3792	3788
3793	3789		There is hereby created an interstate governmental entity to be known as the "compact committee," which shall be composed of one official from the racing commission or its equivalent in each party state who shall be appointed, serve, and be subject to removal in accordance with the laws of the party state he represents. Pursuant to the laws of his party state, each official shall have the assistance of his state's racing commission or the equivalent thereof in considering issues related to licensing of participants in live racing and in fulfilling his responsibilities as the representative from his state to the compact committee. If an official is unable to perform any duty in connection with the powers and duties of the compact committee, the racing commission or equivalent thereof from his state shall designate an alternate who shall serve in his place and represent the party state as its official on the compact committee until that racing commission or equivalent thereof determines that the original representative official is able once again to perform his duties as that party state's representative official on the compact committee. The designation of an alternate shall be communicated by the affected state's racing commission or equivalent thereof to the compact committee as the committee's bylaws may provide.
3794	3790
3795	3791		7. Powers and duties of compact committee.
3796	3792
3797	3793		In order to carry out the purposes of this compact, the compact committee is hereby granted the power and duty to:
3798	3794
3799	3795		1. Determine which categories of participants in live racing, including but not limited to owners, trainers, jockeys, grooms, mutuel clerks, racing officials, veterinarians, and farriers, and which categories of equivalent participants in live racing with pari-mutuel wagering authorized in two or more of the party states, should be licensed by the committee, and establish the requirements for the initial licensure of applicants in each such category, the term of the license for each category, and the requirements for renewal of licenses in each category, provided, however, that with regard to requests for criminal records on the issuance or renewal of a license, the compact committee shall determine for each category of participants in live racing which licensure requirements for that category are, in its judgment, the most restrictive licensure requirements of any party state for that category and shall adopt licensure requirements for that category that are, in its judgment, comparable to those most restrictive requirements.
3800	3796
3801	3797		2. Investigate applicants for a license from the compact committee and, as permitted by federal and state law, gather information on such applicants, including criminal history record information from the Federal Bureau of Investigation and relevant state and local law-enforcement agencies, and, where appropriate, from the Royal Canadian Mounted Police and law-enforcement agencies of other countries, necessary to determine whether a license should be issued under the licensure requirements established by the committee as provided in subdivision 1. Only officials on, and employees of, the compact committee may receive and review such criminal history record information, and those officials and employees may use that information only for the purposes of this compact. No such official or employee may disclose or disseminate such information to any person or entity other than another official or employee of the compact committee. The fingerprints of each applicant for a license from the compact committee shall be taken by the compact committee, its employees, or its designee and, pursuant to Public Law 92-544 or Public Law 100-413, shall be forwarded to a state identification bureau, or an association of state officials regulating pari-mutuel wagering designated by the Attorney General of the United States, for submission to the Federal Bureau of Investigation for a criminal history records check. Such fingerprints may be submitted on a fingerprint card or by electronic or other means authorized by the Federal Bureau of Investigation or other receiving law-enforcement agency.
3802	3798
3803	3799		3. Issue licenses to, and renew the licenses of, participants in live racing listed in subdivision 1 who are found by the committee to have met the licensure and renewal requirements established by the committee. The compact committee shall not have the power or authority to deny a license. If it determines that an applicant will not be eligible for the issuance or renewal of a compact committee license, the compact committee shall notify the applicant that it will not be able to process his application further. Such notification does not constitute and shall not be considered to be the denial of a license. Any such applicant shall have the right to present additional evidence to, and to be heard by, the compact committee, but the final decision on issuance or renewal of the license shall be made by the compact committee using the requirements established pursuant to subdivision 1.
3804	3800
3805	3801		4. Enter into contracts or agreements with governmental agencies and with nongovernmental persons to provide personal services for its activities and such other services as may be necessary to effectuate the purposes of this compact.
3806	3802
3807	3803		5. Create, appoint, and abolish those offices, employments, and positions, including an executive director, as it deems necessary for the purposes of this compact, prescribe their powers, duties, and qualifications, hire persons to fill those offices, employments, and positions, and provide for the removal, term, tenure, compensation, fringe benefits, retirement benefits, and other conditions of employment of its officers, employees, and other positions.
3808	3804
3809	3805		6. Borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental agency, or from any person, firm, association, corporation, or other entity.
3810	3806
3811	3807		7. Acquire, hold, and dispose of real and personal property by gift, purchase, lease, license, or in other similar manner, in furtherance of the purposes of this compact.
3812	3808
3813	3809		8. Charge a fee to each applicant for an initial license or renewal of a license.
3814	3810
3815	3811		9. Receive other funds through gifts, grants, and appropriations.
3816	3812
3817	3813		8. Voting requirements.
3818	3814
3819	3815		A. Each official shall be entitled to one vote on the compact committee.
3820	3816
3821	3817		B. All action taken by the compact committee with regard to the addition of party states as provided in 3, the licensure of participants in live racing, and the receipt and disbursement of funds shall require a majority vote of the total number of officials, or their alternates, on the committee. All other action by the compact committee shall require a majority vote of those officials, or their alternates, present and voting.
3822	3818
3823	3819		C. No action of the compact committee may be taken unless a quorum is present. A majority of the officials, or their alternates, on the compact committee shall constitute a quorum.
3824	3820
3825	3821		9. Administration and management.
3826	3822
3827	3823		A. The compact committee shall elect annually from among its members a chairman, a vice-chairman, and a secretary/treasurer.
3828	3824
3829	3825		B. The compact committee shall adopt bylaws for the conduct of its business by a two-thirds vote of the total number of officials or their alternates, on the committee at that time and shall have the power by the same vote to amend and rescind such bylaws. The committee shall publish its bylaws in convenient form and shall file a copy thereof and a copy of any amendments thereto with the secretary of state or equivalent agency of each of the party states.
3830	3826
3831	3827		C. The compact committee may delegate the day-to-day management and administration of its duties and responsibilities to an executive director and his support staff.
3832	3828
3833	3829		D. Employees of the compact committee shall be considered governmental employees.
3834	3830
3835	3831		10. Immunity from liability for performance of official responsibilities and duties.
3836	3832
3837	3833		No official of a party state or employee of the compact committee shall be held personally liable for any good faith act or omission that occurs during the performance and within the scope of his responsibilities and duties under this compact.
3838	3834
3839	3835		ARTICLE V. Rights and Responsibilities of Each Party State.
3840	3836
3841	3837		11. Rights and responsibilities of each party state.
3842	3838
3843	3839		A. By enacting this compact, each party state:
3844	3840
3845	3841		1. Agrees (i) to accept the decisions of the compact committee regarding the issuance of compact committee licenses to participants in live racing pursuant to the committee's licensure requirements and (ii) to reimburse or otherwise pay the expenses of its official representative on the compact committee or his alternate.
3846	3842
3847	3843		2. Agrees not to treat a notification to an applicant by the compact committee under subdivision 3 of 7 that the compact committee will not be able to process his application further as the denial of a license, or to penalize such an applicant in any other way based solely on such a decision by the compact committee.
3848	3844
3849	3845		3. Reserves the right (i) to charge a fee for the use of a compact committee license in that state; (ii) to apply its own standards in determining whether, on the facts of a particular case, a compact committee license should be suspended or revoked; (iii) to apply its own standards in determining licensure eligibility, under the laws of that party state, for categories of participants in live racing that the compact committee determines not to license and for individual participants in live racing who do not meet the licensure requirements of the compact committee; and (iv) to establish its own licensure standards for the licensure of nonracing employees at horse racetracks and employees at separate satellite wagering facilities. Any party state that suspends or revokes a compact committee license shall, through its racing commission or the equivalent thereof or otherwise, promptly notify the compact committee of that suspension or revocation.
3850	3846
3851	3847		B. No party state shall be held liable for the debts or other financial obligations incurred by the compact committee.
3852	3848
3853	3849		ARTICLE VI. Construction and Severability.
3854	3850
3855	3851		12. Construction and severability.
3856	3852
3857	3853		This compact shall be liberally construed so as to effectuate its purposes. The provisions of this compact shall be severable, and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the Constitution of the United States or of any party state, or the applicability of this compact to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If all or some portion of this compact is held to be contrary to the constitution of any party state, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.
3858	3854
3859	3855		29.5-613. Compact Committee members.
3860	3856
3861	3857		The Governor shall appoint one official to represent the Commonwealth on the Compact Committee for a term of four years. No official shall serve more than three consecutive terms. A vacancy shall be filled by the Governor for the unexpired term.
3862	3858
3863	3859		29.5-614. Cooperation of departments, agencies, and officers of the Commonwealth.
3864	3860
3865	3861		All departments, agencies, and officers of the Commonwealth and its political subdivisions are hereby authorized to cooperate with the Compact Committee in furtherance of any of its activities pursuant to the Compact.
3866	3862
3867	3863		Article 3.
3868	3864
3869	3865		Licenses and Permits.
3870	3866
3871	3867		29.5-615. Owner's and operator's license required.
3872	3868
3873	3869		A. No person shall construct, establish, or own a satellite facility where pari-mutuel wagering is permitted unless he has obtained an owner's license issued by the Commissioner in accordance with the provisions of this chapter.
3874	3870
3875	3871		B. No person shall operate pari-mutuel wagering with his knowledge or acquiescence unless he has obtained an operator's license issued by the Commissioner in accordance with the provisions of this chapter.
3876	3872
3877	3873		C. No license issued under the provisions of this chapter shall be transferable.
3878	3874
3879	3875		29.5-616. Limited licenses; transfer of meet; taxation; authority to issue; limitations.
3880	3876
3881	3877		A. Notwithstanding the provisions of 29.5-615 or 29.5-618 but subject to such regulations and criteria as it may prescribe, the Commission is authorized to issue limited licenses, provided such licenses shall permit any holder to conduct a race meeting or meetings 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.
3882	3878
3883	3879		B. The Commission may at any time, in its discretion, authorize any organization or association licensed under this section to transfer its race meeting or meetings from its own track or place for holding races to the track or place for holding races of any other organization or association licensed under this chapter upon the payment of any and all appropriate license fees. No such authority to transfer shall be granted without the express consent of the organization or association owning or leasing the track to which such transfer is made.
3884	3880
3885	3881		C. For any such meeting the licensee shall retain and pay from the pool the tax as provided in Article 5 ( 29.5-633 et seq.).
3886	3882
3887	3883		29.5-617. Application for owner's license; penalty.
3888	3884
3889	3885		A. Any person desiring to construct or own a satellite facility where pari-mutuel wagering is permitted shall file with the Commission an application for an owner's license. Such application shall be filed at the time and place, and in such form and containing such information, as prescribed by the Board with the following:
3890	3886
3891	3887		1. The name and address of such person; if a corporation, the state of its incorporation, and the full name and address of each officer and director thereof, and if a foreign corporation, whether it is qualified to do business in the Commonwealth; if a partnership or joint venture, the name and address of each officer thereof;
3892	3888
3893	3889		2. The name and address of each stockholder or member of such corporation, or each partner of such partnership or joint venture, and of each person who has contracted for a pecuniary interest in the applicant where pari-mutuel wagering will be conducted, whether such interest is an ownership or a security interest, and the nature and value of such interest, and the name and address of each person who has agreed to lend money to the applicant;
3894	3890
3895	3891		3. Such information as the Board deems appropriate regarding the character, background, and responsibility of the applicant and the members, partners, stockholders, officers, and directors of the applicant;
3896	3892
3897	3893		4. The location and description of the place where such person proposes to hold such wagering, including the name of any county, city, or town in which any property of such satellite facility is or will be located. The Board shall require such information about the location of such satellite facility as it deems necessary and appropriate to determine whether it complies with the minimum standards provided in this chapter, and whether the conduct of pari-mutuel wagering at such location would be in the best interests of the people of the Commonwealth;
3898	3894
3899	3895		5. Such information relating to the financial responsibility of the applicant as the Board deems appropriate;
3900	3896
3901	3897		6. If any of the facilities necessary for the conduct of pari-mutuel wagering are to be leased, the terms of such lease; and
3902	3898
3903	3899		7. Any other information that the Board, in its discretion, deems appropriate.
3904	3900
3905	3901		B. Any application filed hereunder shall be verified by the oath or affirmation of an officer of the applicant and accompanied by a nonrefundable application fee as prescribed by the Board.
3906	3902
3907	3903		C. Any person who knowingly makes a false statement to the Board for the purposes of obtaining a license under this chapter is guilty of a Class 4 felony.
3908	3904
3909	3905		29.5-618. Issuance of owner's license.
3910	3906
3911	3907		A. The Commissioner shall consider all applications for an owner's license and may grant a valid owner's license to applicants who meet the criteria set forth in this chapter and established by the Board. The Commissioner shall deny a license to any applicant unless he finds that the applicant's facilities are or will be appropriate for the finest quality of racing.
3912	3908
3913	3909		B. The Commissioner shall deny a license to an applicant if he finds that (i) for any reason, the issuance of a license to the applicant would not be in the interest of the people of the Commonwealth or the horse racing industry in the Commonwealth or would reflect adversely on the honesty and integrity of the horse racing industry in the Commonwealth or (ii) that the applicant, or any officer, partner, principal stockholder, or director of the applicant:
3914	3910
3915	3911		1. Has knowingly made a false statement of material fact or has deliberately failed to disclose any information requested;
3916	3912
3917	3913		2. Is or has been found guilty of any illegal, corrupt, or fraudulent act, practice, or conduct in connection with any horse racing in this or any other state, or has been convicted of a felony;
3918	3914
3919	3915		3. Has at any time knowingly failed to comply with the provisions of this chapter or of any regulations of the Board;
3920	3916
3921	3917		4. Has had a license or permit to hold or conduct a horse race meeting denied for just cause, suspended, or revoked in any other state or country;
3922	3918
3923	3919		5. Has legally defaulted in the payment of any obligation or debt due to the Commonwealth;
3924	3920
3925	3921		6. Has constructed or caused to be constructed a racetrack or satellite facility for which a license was required under 29.5-617 without obtaining such license, or has deviated substantially, without the permission of the Commissioner, from the plans and specifications submitted to the Commission; or
3926	3922
3927	3923		7. Is not qualified to do business in the Commonwealth or is not subject to the jurisdiction of the courts of the Commonwealth.
3928	3924
3929	3925		C. The Commissioner shall deny a license to any applicant unless he finds:
3930	3926
3931	3927		1. That, if the corporation is a stock corporation, that such stock is fully paid and nonassessable, has been subscribed and paid for only in cash or property to the exclusion of past services, and, if the corporation is a nonstock corporation, that there are at least 20 members;
3932	3928
3933	3929		2. That all principal stockholders or members have submitted to the jurisdiction of the courts of the Commonwealth, and all nonresident principal stockholders or members have designated the Executive Secretary as their agent for receipt of process;
3934	3930
3935	3931		3. That the applicant's articles of incorporation provide that the corporation may, on vote of a majority of the stockholders or members, purchase at fair market value the entire membership interest of any stockholder or require the resignation of any member who is or becomes unqualified for such position under 29.5-620; and
3936	3932
3937	3933		4. That the applicant meets the criteria established by the Board for the granting of an owner's license.
3938	3934
3939	3935		29.5-619. Licensing of owners or operators of certain pari-mutuel facilities.
3940	3936
3941	3937		A. Notwithstanding the provisions of 29.5-632, the Commissioner may grant a license, for a duration to be determined by the Board, to the owner or operator of a facility for the purpose of conducting pari-mutuel wagering on (i) Thoroughbred and standard bred race meetings and (ii) simulcast horse racing at that facility in conjunction with the race meetings for a period not to exceed 14 days in any calendar year, provided that, prior to making application for such license, (a) the facility has been approved by the Board and (b) the owner or operator of such facility has been granted tax-exempt status under 501(c)(3) or (4) of the Internal Revenue Code.
3942	3938
3943	3939		B. In deciding whether to grant any license pursuant to this section, the Commissioner shall consider (i) the results of, circumstances surrounding, and issues involved in any referendum conducted under the provisions of 29.5-632 and (ii) whether the Commissioner had previously granted a license to such facility, owner, or operator.
3944	3940
3945	3941		C. In no event shall the Commissioner issue more than 12 licenses in a calendar year pursuant to this section.
3946	3942
3947	3943		29.5-620. Refusal of owner's license.
3948	3944
3949	3945		No owner's license or renewal thereof shall be granted to any corporation if the Commissioner finds that any principal stockholder of such stock corporation, or any member of such nonstock corporation:
3950	3946
3951	3947		1. Is or has been guilty of any illegal, corrupt, or fraudulent act, conduct, or practice in connection with horse racing in this or any other state, or has knowingly failed to comply with the provisions of this chapter or Board regulations;
3952	3948
3953	3949		2. Has had a license or permit to hold or conduct a race meeting denied for cause, suspended, or revoked in any other state or country; or
3954	3950
3955	3951		3. Has at any time during the previous five years knowingly failed to comply with the provisions of this chapter or any Board regulations.
3956	3952
3957	3953		29.5-621. Duration, form of owner's license; bond.
3958	3954
3959	3955		A license issued under 29.5-618 shall be for the period set by the Board, not to be less than 20 years, but shall be reviewed annually. The Board shall designate on the license the duration of such license, the location of such satellite facility or proposed satellite facility and such other information as it deems proper. The Board shall establish criteria and procedures for license renewal.
3960	3956
3961	3957		The Board shall require (i) a bond with surety or (ii) a letter of credit, acceptable to the Board, and in an amount determined by it, to be sufficient to cover any indebtedness incurred by the licensee to the Commonwealth.
3962	3958
3963	3959		29.5-622. Application for operator's license.
3964	3960
3965	3961		A. Any person desiring to operate a satellite facility shall file with the Commission an application for an operator's license. Such application may be made in conjunction with an application for an owner's license, if appropriate, and shall be filed at the time and place, and in such form and containing such information, as prescribed by the Board, including all information prescribed for an owner's license under 29.5-617.
3966	3962
3967	3963		B. Any application filed pursuant to this section shall be verified by the oath or affirmation of an officer of the applicant and accompanied by a nonrefundable application fee as prescribed by the Board.
3968	3964
3969	3965		29.5-623. Issuance of operator's license.
3970	3966
3971	3967		The Commissioner shall promptly consider any application for an operator's license and grant a valid operator's license to applicants who meet the criteria set forth in this chapter and established by the Board. The Commissioner shall deny a license to any applicant, unless he finds:
3972	3968
3973	3969		1. That such applicant is a corporation organized under Title 13.1 or comparable law of another state, and qualified to do business in the Commonwealth;
3974	3970
3975	3971		2. That, if the corporation is a stock corporation, all principal stockholders have submitted to the jurisdiction of the courts of the Commonwealth and all nonresident principal stockholders have designated the Executive Secretary as their agent for process, and further, that an application shall also contain information as required by 29.5-617;
3976	3972
3977	3973		3. That the applicant's articles of incorporation provide that the corporation may, on vote of a majority of the stockholders or members, purchase at fair market value the entire membership interest of any stockholder, or require the resignation of any member, who is or becomes unqualified for such position under 29.5-620;
3978	3974
3979	3975		4. That the applicant would be qualified for a license to own such satellite facility under the provisions of 29.5-618 and 29.5-620;
3980	3976
3981	3977		5. That the applicant has made provisions satisfactory to the Board for the detection and prosecution of any illegal, corrupt, or fraudulent act, practice, or conduct in connection with any race meeting or pari-mutuel wagering, that the applicant has made provision for membership in the Thoroughbred Racing Association or other equivalent applicable association, and that the applicant shall utilize the services of the Thoroughbred Racing Protective Bureau or any other protective agency acceptable to the Commission and with the approval of the Racing Commission; and
3982	3978
3983	3979		6. That the applicant has met the criteria established by the Board for the granting of an operator's license.
3984	3980
3985	3981		29.5-624. Duration, form of operator's license; bond.
3986	3982
3987	3983		A license issued under 29.5-623 shall be for a period of 20 years from the date of issuance, but shall be reviewed annually. The Board may, as it deems appropriate, change at the beginning of any year the dates on which the licensee is authorized to conduct pari-mutuel wagering. An applicant for renewal of a license may omit any information that in the opinion of the Commission is already available to it. The Board shall establish criteria and procedures for license renewal.
3988	3984
3989	3985		Any license issued under 29.5-623 shall designate on its face (i) the type or types of pari-mutuel wagering for which it is issued, (ii) the location of the satellite facility where such wagering is to be conducted, (iii) the period during which such license is in effect, and (iv) such other information as the Board deems proper.
3990	3986
3991	3987		The Board shall require a bond with surety acceptable to it, and in an amount determined by it to be sufficient to cover any indebtedness incurred by such licensee during the days allotted for racing.
3992	3988
3993	3989		29.5-625. Denial of license final.
3994	3990
3995	3991		The denial of an owner's or operator's license by the Commissioner shall be final unless appealed under 29.5-608.
3996	3992
3997	3993		29.5-626. Suspension or revocation of license final.
3998	3994
3999	3995		A. After a hearing with 15 days' notice, the Commissioner may (i) suspend or revoke any license or (ii) fine the holder of such license a sum not to exceed $100,000 in any case where he has reason to believe that any provision of this chapter, or any regulation or condition of the Board, has not been complied with or has been violated. The Commissioner may revoke a license if he finds that facts not known by him at the time he considered the application indicate that such license should not have been issued.
4000	3996
4001	3997		B. The Commissioner shall revoke any license issued under 29.5-623 for the operation of a satellite facility if the licensee, within one year of issuance of the satellite facility license, fails to conduct (i) live racing at a racetrack licensed pursuant to 29.5-623 or (ii) the live racing days assigned to the licensee by the Racing Commission without the permission of the Racing Commission.
4002	3998
4003	3999		C. The Commissioner may summarily suspend any license for a period of not more than 90 days pending a hearing and final determination by the Board if he determines that emergency action is required to protect the public health, safety, and welfare including revenues due the Commonwealth, localities, and the horsemen's purse account. The Board shall (i) schedule a hearing within 14 business days after the license is summarily suspended and (ii) notify the licensee not less than five business days before the hearing of the date, time, and place of the hearing.
4004	4000
4005	4001		D. Deliberations of the Board pursuant to this section shall be conducted pursuant to the provisions of the Virginia Freedom of Information Act ( 2.2-3700 et seq.). If any such license is suspended or revoked, the Commissioner shall state his reasons for doing so, which shall be entered of record. Such action shall be final unless appealed in accordance with 29.5-608. Suspension or revocation of a license by the Commissioner for any violation shall not preclude criminal liability for such violation.
4006	4002
4007	4003		29.5-627. Acquisition of interest in licensee.
4008	4004
4009	4005		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 such approval and may demand such information of the applicant as it finds necessary. The Commissioner shall consider such application forthwith and shall approve or deny the application within 60 days of receipt. The Commissioner shall approve an application that meets the criteria set forth in this chapter. The Commissioner shall deny an application if in his judgment the acquisition by the applicant would be detrimental to the public interest or to the honesty, integrity, and reputation of horse racing. The Commissioner shall approve an application to acquire actual control of a licensee only if he finds that the applicant meets the criteria set forth in subsection B.
4010	4006
4011	4007		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 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 Board to assure the Commissioner 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) Board 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.
4012	4008
4013	4009		C. Any such acquisition of control without prior approval of the Commissioner shall be voidable by the Commission and, in such instance, the Commissioner may revoke any license he has issued to such licensee, order compliance with this section, or take such other action as may be appropriate within his authority.
4014	4010
4015	4011		29.5-628. Permit required; exception.
4016	4012
4017	4013		A. No participant shall engage in any horse racing subject to the jurisdiction of the Commission or in the conduct of a race meeting or pari-mutuel wagering thereon, including as a horse owner, trainer, jockey, exercise rider, groom, stable foreman, valet, veterinarian, agent, pari-mutuel employee, concessionaire or employee thereof, track employee, or other position the Commission deems necessary to regulate to ensure the integrity of horse racing in Virginia, unless such person (i) possesses a permit therefor from the Commission and (ii) complies with the provisions of this chapter and all Board regulations. No permit issued under the provisions of this chapter shall be transferable.
4018	4014
4019	4015		B. The Commissioner may waive the permit requirement for any person who possesses a valid permit or license to participate in the conduct of horse racing in another racing jurisdiction and participates in horse racing in Virginia on nonconsecutive racing days.
4020	4016
4021	4017		C. Once a horse is entered to run in Virginia, all participants shall come under the jurisdiction of the Commission and its stewards and shall be subject to regulations of the Board and sanctions it or its stewards may impose.
4022	4018
4023	4019		29.5-629. Application for permit.
4024	4020
4025	4021		Any person desiring to obtain a permit as required by this chapter shall submit an application on a form, and accompanied by a fee, as prescribed by the Board and verified by the oath or affirmation of the applicant.
4026	4022
4027	4023		29.5-630. Consideration of application.
4028	4024
4029	4025		A. The Commissioner shall promptly consider any application for a permit and issue or deny such permit based on the information in the application and all other information before him, including any investigation he deems appropriate. If an application for a permit is approved, the Commissioner shall issue a permit, which shall contain such information as the Board deems appropriate. Such permit shall be valid for one year; however, the permit of a licensee's employee shall expire automatically when such permit holder leaves the employment of the licensee or at the end of one year, whichever occurs first. The licensee shall promptly notify the Commission when a permit holder leaves the employment of the licensee. The Board shall establish criteria and procedures for permit renewal.
4030	4026
4031	4027		B. The Commissioner shall deny the application and refuse to issue the permit, which denial shall be final unless an appeal is taken under 29.5-608, if he finds that the issuance of such permit to such applicant (i) would not be in the interests of the people of the Commonwealth or the horse racing industry of the Commonwealth, or would reflect on the honesty and integrity of the horse racing industry in the Commonwealth, or (ii) that the applicant:
4032	4028
4033	4029		1. Has knowingly made a false statement of a material fact in the application, or has deliberately failed to disclose any information requested by the Commission;
4034	4030
4035	4031		2. Is or has been found guilty of any corrupt or fraudulent practice or conduct in connection with horse racing in this or any other state;
4036	4032
4037	4033		3. Has knowingly failed to comply with the provisions of this chapter or the regulations of the Board;
4038	4034
4039	4035		4. Has had a permit to engage in activity related to horse racing denied for just cause, suspended, or revoked in any other state, and such denial, suspension, or revocation is still in effect; or
4040	4036
4041	4037		5. Is unqualified to perform the duties required for the permit sought.
4042	4038
4043	4039		C. The Commissioner shall deny the application and refuse to issue the permit if, within the five years immediately preceding the date of the application for the permit sought, the applicant has been convicted of a crime involving the unlawful conduct of wagering, fraudulent use of a credential, unlawful transmission of information, touting, bribery, or administration or possession of drugs or any felony considered by the Commission to be detrimental to horse racing in the Commonwealth; the denial shall be final unless an appeal is taken under 29.5-608. Additionally, the Commissioner may deny the application and refuse to issue any permit if the applicant has been convicted of any such crime committed prior to the five years immediately preceding the date of his application.
4044	4040
4045	4041		D. The Commissioner may refuse to issue the permit if for any reason he feels the granting of such permit is not consistent with the provisions of this chapter or his responsibilities hereunder.
4046	4042
4047	4043		29.5-631. Suspension or revocation of permit; fine.
4048	4044
4049	4045		A. The Commissioner, acting by and through his stewards or at a Board meeting at which a quorum is present, may (i) suspend or revoke a permit issued under this chapter or fine the holder of such permit a sum not to exceed $10,000 or (ii) suspend a permit issued by this chapter and fine the holder of such permit a sum not to exceed $10,000 after a hearing for which proper notice has been given to the permittee, in any case where it determines by a preponderance of the evidence that any provision of this chapter, or any regulation or condition of the Board, has not been complied with or has been violated. The Commissioner may revoke such permit, after such hearing, if he finds that facts not known by him at the time he was considering the application indicate that such permit should not have been issued. Deliberations of the Commission under this section shall be conducted pursuant to the provisions of the Virginia Freedom of Information Act ( 2.2-3700 et seq.). If any permit is suspended or revoked, the Commissioner shall state his reasons for doing so, which shall be entered of record. Such action shall be final unless an appeal is taken in accordance with 29.5-608. Suspension or revocation of a permit by the Commissioner for any violation shall not preclude criminal liability for such violation.
4050	4046
4051	4047		B. The Commissioner, acting by and through his stewards, or at a Board meeting at which a quorum is present, may summarily suspend the permit of a person for a period of not more than 90 days pending a hearing and final determination by the Commissioner or his stewards, if the Commissioner or his stewards determine the protection of the integrity of horse racing requires emergency action. The Commissioner or his stewards shall (i) schedule a hearing within 14 business days after the permit is summarily suspended and (ii) notify the permit holder, not less than five business days before the hearing, of the date, time, and place of the hearing.
4052	4048
4053	4049		Article 4.
4054	4050
4055	4051		Local referendum.
4056	4052
4057	4053		29.5-632. Local referendum required.
4058	4054
4059	4055		The Commissioner shall not grant any initial license to construct, establish, operate, or own a racetrack or satellite facility until a referendum approving the question is held in each county, city, or town in which such racetrack or satellite facility is to be located, in the following manner:
4060	4056
4061	4057		1. A petition, signed by five percent of the qualified voters of such county, city, or town shall be filed with the circuit court of such county, city, or town asking that a referendum be held on the question, "Shall pari-mutuel wagering be permitted at a licensed racetrack in (name of such county, city, or town) on live horse racing at, and on simulcast horse racing transmitted from another jurisdiction to, the licensed racetrack on such days as may be approved by the Virginia Gaming Commission in accordance with Chapter 6 ( 29.5-600 et seq.) of Title 29.5 of the Code of Virginia?" In addition, or in the alternative, such petition may ask that a referendum be held on the question, "Shall pari-mutuel wagering be permitted in _______________ (the name of such county, city, or town) at satellite facilities in accordance with Chapter 6 ( 29.5-600 et seq.) of Title 29.5 of the Code of Virginia?"
4062	4058
4063	4059		2. Following the filing of such petition, the court shall, by order of record entered in accordance with 24.2-684.1, require the regular election officers of such county, city, or town to cause a special election to be held to take the sense of the qualified voters on the question. Such election shall be on a day designated by order of such court, but shall not be later than the next general election unless such general election is within 60 days of the date of the entry of such order, nor shall it be held on a date designated as a primary election.
4064	4060
4065	4061		3. The clerk of such court of record of such county, city, or town shall publish notice of such election in a newspaper of general circulation in such county, city, or town once a week for three consecutive weeks prior to such election.
4066	4062
4067	4063		4. The regular election officers of such county or city shall open the polls at the various voting places in such county or city on the date specified in such order and conduct such election in the manner provided by law. The election shall be by ballot, which shall be prepared by the electoral board of the county, city, or town and on which shall be printed either or both of the following questions:
4068	4064
4069	4065		"Shall pari-mutuel wagering be permitted at a licensed racetrack in _______________ on live horse racing at, and on simulcast horse racing transmitted from another jurisdiction to, the licensed racetrack on such days as may be approved by the Virginia Gaming Commission in accordance with Chapter 6 ( 29.5-600 et seq.) of Title 29.5 of the Code of Virginia?
4070	4066
4071	4067		[ ] Yes
4072	4068
4073	4069		[ ] No"
4074	4070
4075	4071		"Shall pari-mutuel wagering be permitted in _______________ at satellite facilities in accordance with Chapter 6 ( 29.5-600 et seq.) of Title 29.5 of the Code of Virginia?
4076	4072
4077	4073		[ ] Yes
4078	4074
4079	4075		[ ] No"
4080	4076
4081	4077		In the blank shall be inserted the name of the county, city, or town in which such election is held. Any voter desiring to vote "Yes" shall mark a check mark () or a cross mark (x or +) or a line (-) in the square provided for such purpose immediately preceding the word "Yes," leaving the square immediately preceding the word "No" unmarked. Any voter desiring to vote "No" shall mark a check mark () or a cross mark (x or +) or a line (-) in the square provided for such purpose immediately preceding the word "No," leaving the square immediately preceding the word "Yes" unmarked.
4082	4078
4083	4079		The ballots shall be counted, the returns made and canvassed as in other elections, and the results certified by the electoral board to the court ordering such election. Thereupon, such court shall enter an order proclaiming the results of such election and a duly certified copy of such order shall be transmitted to the Commission and to the governing body of such county, city, or town.
4084	4080
4085	4081		No such referendum as described above shall be held more often than every three years in the same county, city, or town.
4086	4082
4087	4083		A subsequent local referendum shall be required if a license has not been granted by the Commission within five years of the court order proclaiming the results of the election. "Town," for purposes of this section, means any town with a population of 5,000 or more.
4088	4084
4089	4085		Article 5.
4090	4086
4091	4087		Taxation; Retainage; Distribution.
4092	4088
4093	4089		29.5-633. Taxation and retainage generally.
4094	4090
4095	4091		A. Moneys payable to the Commonwealth shall be deposited in the general fund. Gross receipts for license tax purposes under Chapter 37 ( 58.1-3700 et seq.) of Title 58.1 shall not include pari-mutuel wagering pools and license taxes authorized by this article.
4096	4092
4097	4093		B. All payments by the licensee to the Commonwealth or any locality shall be made within five days from the date on which such wagers are received by the licensee. All payments by the licensee to the Virginia Breeders Fund shall be made to the Commission within five days from the date on which such wagers are received by the licensee. All payments by the licensee to the Virginia-Maryland Regional College of Veterinary Medicine, the Virginia Horse Center Foundation, the Virginia Horse Industry Board, and the Virginia Thoroughbred Association shall be made by the first day of each quarter of the calendar year. All payments made under this article shall be used in support of the policy of the Commonwealth to sustain and promote the growth of a native industry.
4098	4094
4099	4095		C. If a satellite facility is located in more than one locality, any amount a licensee is required to pay under this article to the locality in which the satellite facility is located shall be prorated in equal shares among those localities.
4100	4096
4101	4097		D. Any contractual agreement between a licensee and other entities concerning the distribution of the remaining portion of the retainage under subsections B through G of 29.5-635 and subsections A and B of 29.5-636 shall be subject to the approval of the Board.
4102	4098
4103	4099		E. The recognized majority horsemen's group racing at a licensed race meeting may, subject to the approval of the Board, withdraw for administrative costs associated with serving the interests of the horsemen an amount not to exceed two percent of the amount in the horsemen's account.
4104	4100
4105	4101		F. The legitimate breakage from each pari-mutuel pool for live, historical, and simulcast horse racing shall be distributed as follows:
4106	4102
4107	4103		1. Seventy percent to be retained by the licensee to be used for capital improvements that are subject to approval of the Board; and
4108	4104
4109	4105		2. Thirty percent to be deposited in the Racing Benevolence Fund, administered jointly by the licensee and the recognized majority horsemen's group racing at a licensed race meeting, to be disbursed with the approval of the Board for gambling addiction and substance abuse counseling, recreational, educational, or other related programs.
4110	4106
4111	4107		29.5-634. Percentage retained; tax; live horse racing.
4112	4108
4113	4109		A. On pari-mutuel pools generated by wagering at the racetrack on live horse racing conducted within the Commonwealth involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Board as jointly requested by a recognized majority horsemen's group and a licensee and the legitimate breakage, out of which shall be paid 1.25 percent to be distributed as follows: 1.0 percent to the Commonwealth as a license tax and 0.25 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection C, provided, however, that if the percentage amount approved by the Board is other than 18 percent, the amounts provided in subdivisions C 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent.
4114	4110
4115	4111		B. On pari-mutuel pools generated by wagering at each Virginia satellite facility on live horse racing conducted within the Commonwealth involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Board as jointly requested by a recognized majority horsemen's group and a licensee and the legitimate breakage, out of which shall be paid 1.25 percent to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility is located, and 0.25 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection C, provided, however, that if the percentage amount approved by the Board is other than 18 percent, the amounts provided in subdivisions C 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent.
4116	4112
4117	4113		C. On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on live horse racing conducted within the Commonwealth involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Board as jointly requested by a recognized majority horsemen's group and a licensee and the legitimate breakage, out of which shall be paid:
4118	4114
4119	4115		1. Eight percent as purses or prizes to the participants in such race meeting;
4120	4116
4121	4117		2. Seven and one-half percent and all of the breakage and the proceeds of pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator;
4122	4118
4123	4119		3. One percent to the Virginia Breeders Fund;
4124	4120
4125	4121		4. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;
4126	4122
4127	4123		5. Five one-hundredths percent to the Virginia Horse Center Foundation;
4128	4124
4129	4125		6. Five one-hundredths percent to the Virginia Horse Industry Board; and
4130	4126
4131	4127		7. The remainder as appropriate under subsection A or B.
4132	4128
4133	4129		D. On pari-mutuel pools generated by wagering at the racetrack on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Board as jointly requested by a recognized majority horsemen's group and a licensee and the legitimate breakage, out of which shall be paid 2.75 percent to be distributed as follows: 2.25 percent to the Commonwealth as a license tax, and 0.5 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection F, provided, however, that if the percentage amount approved by the Board is other than 22 percent, the amounts provided in subdivisions F 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent.
4134	4130
4135	4131		E. On pari-mutuel pools generated by wagering at each Virginia satellite facility on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Board as jointly requested by a recognized majority horsemen's group and a licensee and the legitimate breakage, out of which shall be paid 2.75 percent to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility is located, and 0.5 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection F, provided, however, that if the percentage amount approved by the Board is other than 22 percent, the amounts provided in subdivisions F 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent.
4136	4132
4137	4133		F. On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Board as jointly requested by a recognized majority horsemen's group and a licensee and the legitimate breakage, out of which shall be paid:
4138	4134
4139	4135		1. Nine percent as purses or prizes to the participants in such race meeting;
4140	4136
4141	4137		2. Nine percent and the proceeds of the pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator;
4142	4138
4143	4139		3. One percent to the Virginia Breeders Fund;
4144	4140
4145	4141		4. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;
4146	4142
4147	4143		5. Five one-hundredths percent to the Virginia Horse Center Foundation;
4148	4144
4149	4145		6. Five one-hundredths percent to the Virginia Horse Industry Board; and
4150	4146
4151	4147		7. The remainder as appropriate under subsection D or E.
4152	4148
4153	4149		29.5-635. Percentage retained; tax; simulcast horse racing.
4154	4150
4155	4151		A. On pari-mutuel wagering generated by simulcast horse racing transmitted from jurisdictions outside the Commonwealth, the licensee may, with the approval of the Board, commingle pools with the racetrack where the transmission emanates or establish separate pools for wagering within the Commonwealth. All simulcast horse racing in this subsection must comply with the Interstate Horse Racing Act of 1978 (15 U.S.C. 3001 et seq.).
4156	4152
4157	4153		B. On pari-mutuel pools generated by wagering at the racetrack on simulcast horse racing transmitted from jurisdictions outside the Commonwealth involving win, place, and show wagering, the licensee shall retain 1.25 percent of such pool to be distributed as follows: 0.75 percent to the Commonwealth as a license tax and 0.5 percent to the Virginia locality in which the racetrack is located.
4158	4154
4159	4155		C. On pari-mutuel pools generated by wagering at each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth involving win, place, and show wagering, the licensee shall retain 1.25 percent of such pool to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility is located, and 0.25 percent to the Virginia locality in which the racetrack is located.
4160	4156
4161	4157		D. On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth involving win, place, and show wagering, the licensee shall retain 1.3 percent of such pool to be distributed as follows:
4162	4158
4163	4159		1. One percent of the pool to the Virginia Breeders Fund;
4164	4160
4165	4161		2. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;
4166	4162
4167	4163		3. Five one-hundredths percent to the Virginia Horse Center Foundation;
4168	4164
4169	4165		4. Five one-hundredths percent to the Virginia Horse Industry Board; and
4170	4166
4171	4167		5. Five one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth.
4172	4168
4173	4169		E. On pari-mutuel pools generated by wagering at the racetrack on simulcast horse racing transmitted from jurisdictions outside the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain 2.75 percent of such pool to be distributed as follows: 1.75 percent to the Commonwealth as a license tax and 1.0 percent to the Virginia locality in which the racetrack is located.
4174	4170
4175	4171		F. On pari-mutuel pools generated by wagering at each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain 2.75 percent of such pool to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility is located, and 0.5 percent to the Virginia locality in which the racetrack is located.
4176	4172
4177	4173		G. On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain 1.3 percent of such pool to be distributed as follows:
4178	4174
4179	4175		1. One percent of the pool to the Virginia Breeders Fund;
4180	4176
4181	4177		2. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;
4182	4178
4183	4179		3. Five one-hundredths percent to the Virginia Horse Center Foundation;
4184	4180
4185	4181		4. Five one-hundredths percent to the Virginia Horse Industry Board; and
4186	4182
4187	4183		5. Five one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth.
4188	4184
4189	4185		29.5-636. Percentage retained; tax; historical horse racing.
4190	4186
4191	4187		A. On pari-mutuel pools generated by wagering on historical horse racing on the first 3,000 terminals authorized, the licensee shall retain 1.25 percent of such pool to be distributed as follows:
4192	4188
4193	4189		1. a. If generated at a racetrack, 0.5 percent to the locality in which the racetrack is located; or
4194	4190
4195	4191		b. If generated at a satellite facility, 0.25 percent to the locality in which the satellite facility is located and 0.25 percent to the Virginia locality in which the racetrack is located;
4196	4192
4197	4193		2. To the Problem Gambling Treatment and Support Fund established pursuant to 37.2-314.2, 0.01 percent;
4198	4194
4199	4195		3. To the (i) Virginia Breeders Fund, (ii) Virginia-Maryland Regional College of Veterinary Medicine for its equine programs, (iii) Virginia Horse Center Foundation, and (iv) Virginia Horse Industry Board, 0.025 percent each; and
4200	4196
4201	4197		4. The remainder to the Commonwealth as a license tax.
4202	4198
4203	4199		B. On pari-mutuel pools generated by wagering on historical horse racing on the 2,000 terminals authorized by the seventh enactment of Chapters 1197 and 1248 of the Acts of Assembly of 2020, the licensee shall retain 1.6 percent of such pool to be distributed as follows:
4204	4200
4205	4201		1. a. If generated at a racetrack, 0.64 percent to the locality in which the racetrack is located; or
4206	4202
4207	4203		b. If generated at a satellite facility, 0.32 percent to the locality in which the satellite facility is located and 0.32 percent to the Virginia locality in which the racetrack is located;
4208	4204
4209	4205		2. To the Problem Gambling Treatment and Support Fund established pursuant to 37.2-314.2, 0.01 percent;
4210	4206
4211	4207		3. To the (i) Virginia Breeders Fund, (ii) Virginia-Maryland Regional College of Veterinary Medicine for its equine programs, (iii) Virginia Horse Center Foundation, and (iv) Virginia Horse Industry Board, 0.025 percent each; and
4212	4208
4213	4209		4. The remainder to the Commonwealth as a license tax.
4214	4210
4215	4211		29.5-637. Advance deposit account wagering revenues; distribution.
4216	4212
4217	4213		A. Notwithstanding the provisions of this article, the allocation of revenue from advance deposit account wagering shall include (i) a licensee fee of 1.5 percent paid to the Commission; (ii) an additional fee equal to one percent of all wagers made within the Commonwealth placed through an advance deposit account wagering licensee, which shall be paid to the Virginia Breeders Fund, and (iii) an additional fee equal to nine percent of all wagers made within the Commonwealth placed through an advance deposit account wagering licensee, out of which shall be paid:
4218	4214
4219	4215		1. Four percent to a nonprofit industry stakeholder organization recognized by the Board to include the recognized majority horsemen's group, a breeder's organization, and a licensed track operator for the purpose of promoting, sustaining, and advancing horse racing within the Commonwealth; and
4220	4216
4221	4217		2. Five percent to representatives of the recognized majority horsemen's group by breed to be used for purse funds at races conducted in the Commonwealth, unless otherwise authorized by the Board.
4222	4218
4223	4219		Notwithstanding the foregoing, if the advance deposit account wagering licensee is a significant infrastructure limited licensee, the additional fee equal to nine percent of the wagers placed through such advance deposit account wagering licensee since November 1, 2014, shall instead be retained by such licensee for operational expenses, including defraying the costs of live racing.
4224	4220
4225	4221		B. The Board-recognized nonprofit industry stakeholder organization shall make distributions from fees received from advance deposit wagering to organizations within the Commonwealth providing care for retired race horses, the Virginia-Maryland Regional College of Veterinary Medicine, the Virginia Horse Center Foundation, the Virginia Horse Industry Board, and the Virginia Thoroughbred Association in the percentages of wagering handles set forth in subsections D and G of 29.5-635, and shall make a distribution of thirty-five one-hundredths of one percent of all wagers made within the Commonwealth placed through such advance deposit account wagering licensee to the locality where live racing licensed by the Commission occurred prior to January 1, 2012, and beginning January 1, 2020, to the locality or localities where such live racing occurs to be shared in a ratio of the number of such annual live races in a locality to the total number of such annual lives races in the Commonwealth. Distributions under this section from the Board-recognized nonprofit stakeholder organization to the foregoing entities and locality or localities, when added to the distributions to such entities and locality or localities under this article, shall be capped at the sum necessary to equal distributions made in the 2013 calendar year to each entity under this article, and shall be capped at the sum necessary to equal $400,000 for a locality or localities.
4226	4222
4227	4223		C. Any additional distribution of fees received from advance deposit account licensees by the Board-recognized nonprofit industry stakeholder organization shall be approved by the Board.
4228	4224
4229	4225		29.5-638. Admissions tax.
4230	4226
4231	4227		The governing body of any county or city may by ordinance impose a tax on any licensee hereunder to conduct a race meeting at a track located solely in such county or city of $0.25 on the admission of each person on each day except those holding a valid permit under this chapter and actually employed at such track in the capacity for which such permit was issued. The licensee may collect such amount from the ticket holder in addition to the amount charged for the ticket of admission.
4232	4228
4233	4229		If such track or its enclosure is located in two or in three localities, each locality may impose a tax pursuant to this section of twelve and one-half cents or eight and one-third cents per person, respectively.
4234	4230
4235	4231		Gross receipts for license tax purposes under Chapter 37 ( 58.1-3700 et seq.) of Title 58.1 shall not include the admissions tax imposed under this section.
4236	4232
4237	4233		Article 6.
4238	4234
4239	4235		Prohibited Acts; Penalties.
4240	4236
4241	4237		29.5-639. Unlawful conduct of wagering; penalty.
4242	4238
4243	4239		Any person not licensed pursuant to this chapter who conducts (i) pari-mutuel wagering or (ii) horse racing on which wagering is conducted with his knowledge or consent is guilty of a Class 4 felony.
4244	4240
4245	4241		29.5-640. Fraudulent use of credential; penalty.
4246	4242
4247	4243		A. Any person who has in his possession (i) any credential, license, or permit issued by the Commissioner other than the lawful holder thereof or (ii) a forged or simulated credential, license, or permit of the Commission, and uses such credential, license, or permit for the purpose of misrepresentation, fraud, or touting is guilty of a Class 4 felony.
4248	4244
4249	4245		B. Any credential, license, or permit issued by the Commissioner shall be automatically revoked if used by the holder thereof for a purpose other than identification and in the performance of legitimate duties on a racetrack or within a satellite facility, whether so used on or off a racetrack or satellite facility.
4250	4246
4251	4247		29.5-641. Unlawful transmission of information; penalty.
4252	4248
4253	4249		A. Any person who knowingly transmits information as to the progress or results of a horse race, or information as to wagers, betting odds, post or off times, or jockey changes in any race by any means whatsoever for the purposes of carrying on illegal gambling operations as defined in 18.2-325, or to a person engaged in illegal gambling operations is guilty of a Class 4 felony.
4254	4250
4255	4251		B. This section shall not be construed to prohibit (i) a newspaper from printing such results or information as news or (ii) any television or radio station from telecasting or broadcasting such results or information as news.
4256	4252
4257	4253		C. This section shall not be so construed as to place in jeopardy any common carrier or its agents performing operations within the scope of a public franchise or any gambling operation authorized by law.
4258	4254
4259	4255		29.5-642. Touting; penalty.
4260	4256
4261	4257		Any person who (i) knowingly and designedly by false representation persuades, procures, or causes, or attempts to persuade, procure, or cause, another person to wager on a horse in a race to be run in the Commonwealth or elsewhere, and upon which money is wagered in the Commonwealth, and (ii) asks or demands compensation as a reward for information or purported information given in such case is guilty of a Class 1 misdemeanor.
4262	4258
4263	4259		29.5-643. Bribing of a jockey, driver, or other participant; penalty.
4264	4260
4265	4261		Any person who gives, promises, or offers to any jockey, driver, groom, or any person participating in any race meeting, including owners of racetracks and their employees, stewards, trainers, judges, starters, and special policemen, any valuable thing with intent to influence him to attempt to lose or cause to be lost a horse race in which such person is taking part or expects to take part, or has any duty or connection, or who, being either jockey, driver, groom, or participant in a race meeting, solicits or accepts any valuable thing to influence him to lose or cause to be lost a horse race in which he is taking part, or expects to take part, or has any duty or connection, is guilty of a Class 4 felony.
4266	4262
4267	4263		29.5-644. Prohibited acts, administration of drugs, etc.; penalty.
4268	4264
4269	4265		A. Any person who, with the intent to defraud, acts to alter the outcome of a race by (i) the administration of any substance foreign to the natural horse, except those substances specifically permitted by the regulations of the Board, or (ii) the use of any device, electrical or otherwise, except those specifically permitted by the regulations of the Board, is guilty of a Class 4 felony.
4270	4266
4271	4267		B. Any person who, with the intent to defraud, influences or conspires with another to alter the outcome of a race by (i) the administration of any substance foreign to the natural horse, except those substances specifically permitted by the regulations of the Board, or (ii) the use of any device, electrical or otherwise, except those specifically permitted by the regulations of the Board, is guilty of a Class 4 felony.
4272	4268
4273	4269		C. Any person who (i) administers any substance foreign to the natural horse, except those substances specifically permitted by the regulations of the Board, when the horse is entered to start or (ii) at any time, exposes any substance foreign to the natural horse with the intent of impeding or increasing the speed, endurance, health, or condition of a horse, is guilty of a Class 4 felony.
4274	4270
4275	4271		29.5-645. Possessing drugs; penalty.
4276	4272
4277	4273		A. Except those drugs permitted by regulation of the Board, no person shall possess or transport any drug within the racing enclosure without a bona fide veterinarian's prescription with a complete statement of uses and purposes on the container. A copy of such prescription shall be filed with the stewards.
4278	4274
4279	4275		B. Any person knowingly violating the provisions of this section relating to the legal possession of drugs is guilty of a Class 1 misdemeanor.
4280	4276
4281	4277		C. The provisions of the Drug Control Act ( 54.1-3400 et seq.) shall apply in situations where drugs regulated by the Act are within the racing enclosure.
4282	4278
4283	4279		29.5-646. Racing under false name; penalty.
4284	4280
4285	4281		Any person who knowingly (i) enters or races any horse in any running or harness race under any name or designation other than the name or designation assigned to such horse by and registered with the Jockey Club, the United States Trotting Association, the American Quarter Horse Association, or other applicable association or (ii) instigates, engages in, or in any way furthers any act by which any horse is entered or raced in any running or trotting race under any name or designation other than the name or designation duly assigned by and registered with the Jockey Club, the United States Trotting Association, the American Quarter Horse Association, or other applicable association, is guilty of a Class 4 felony.
4286	4282
4287	4283		29.5-647. Prohibition on underage pari-mutuel wagering; penalty.
4288	4284
4289	4285		A. No person shall wager on or conduct any wagering on the outcome of a horse race pursuant to the provisions of this chapter unless such person is 18 years of age or older.
4290	4286
4291	4287		B. No person shall accept any wager from a minor.
4292	4288
4293	4289		C. No person shall be admitted into a satellite facility if such person is under 18 years of age unless accompanied by a parent or legal guardian.
4294	4290
4295	4291		D. No person under 21 years of age shall use any electronic gaming terminal or other electronic device in a satellite facility to wager on or conduct any wagering on historical horse racing.
4296	4292
4297	4293		E. Violation of this section shall be a Class 1 misdemeanor.
4298	4294
4299	4295		29.5-648. Conspiracies and attempts to commit violations; penalty.
4300	4296
4301	4297		A. Any person who conspires, confederates, or combines with another, either within or outside of the Commonwealth, to commit a felony prohibited by this chapter is guilty of a Class 4 felony.
4302	4298
4303	4299		B. Any person who attempts to commit any act prohibited by this chapter shall be guilty of a criminal offense and punished as provided in either 18.2-26, 18.2-27, or 18.2-28, as appropriate.
4304	4300
4305	4301		SUBTITLE II.
4306	4302
4307	4303		VIRGINIA LOTTERY.
4308	4304
4309	4305		CHAPTER 7.
4310	4306
4311	4307		GENERAL PROVISIONS.
4312	4308
4313	4309		29.5-700. Short title.
4314	4310
4315	4311		This subtitle shall be known and may be cited as the "Virginia Lottery Law."
4316	4312
4317	4313		29.5-701. Establishment of state lottery.
4318	4314
4319	4315		This subtitle establishes a lottery to be operated by the Commonwealth to produce revenue consonant with the probity of the Commonwealth and the general welfare of its people, to be used for the public purpose as provided in Article X, Section 7-A of the Constitution of Virginia.
4320	4316
4321	4317		29.5-702. Definitions.
4322	4318
4323	4319		As used in this subtitle, unless the context requires a different meaning:
4324	4320
4325	4321		"Board" means the Virginia Lottery Board established by this subtitle.
4326	4322
4327	4323		"Department" means the independent agency responsible for the administration of the Virginia Lottery pursuant to this subtitle.
4328	4324
4329	4325		"Director" means the Director of the Virginia Lottery.
4330	4326
4331	4327		"Lottery" or "state lottery" means the lottery or lotteries established and operated pursuant to this subtitle.
4332	4328
4333	4329		"Ticket courier service" means a third-party service operated for the purpose of purchasing Virginia Lottery tickets on behalf of individuals located within or outside of the Commonwealth and delivering or transmitting such tickets, or electronic images thereof, to such individuals as a business-for-profit delivery service.
4334	4330
4335	4331		29.5-703. Virginia Lottery established.
4336	4332
4337	4333		Notwithstanding the provisions of Article 1 ( 18.2-325 et seq.) of Chapter 8 of Title 18.2 or any other provision of law, there is hereby established as an independent agency of the Commonwealth, exclusive of the legislative, executive, or judicial branches of government, the Virginia Lottery, which shall include a Director and a Virginia Lottery Board for the purpose of operating a state lottery.
4338	4334
4339	4335		29.5-704. Membership of Board; appointment; terms; vacancies; removal; expenses.
4340	4336
4341	4337		A. The Board shall consist of five members, all of whom shall be citizens and residents of the Commonwealth and all of whom shall be appointed by and serve at the pleasure of the Governor, subject to confirmation by a majority of the members elected to each house of the General Assembly if in session when the appointment is made, and if not in session, then at its next succeeding session. Prior to the appointment of any Board members, the Governor shall consider the political affiliation and the geographic residence of the Board members. The members shall be appointed for terms of five years. The members shall annually elect one member as chairman of the Board.
4342	4338
4343	4339		B. Any vacancy on the Board occurring for any reason other than the expiration of a term shall be filled for the unexpired term in the same manner as the original term.
4344	4340
4345	4341		C. The members of the Board shall receive such compensation as provided in 2.2-2813, shall be subject to the requirements of such section, and shall be allowed reasonable expenses incurred in the performance of their official duties.
4346	4342
4347	4343		D. Before entering upon the discharge of their duties, the members of the Board shall take an oath that they will faithfully and honestly execute the duties of the office during their continuance therein and they shall give bond in such amount as may be fixed by the Governor, conditioned upon the faithful discharge of their duties. The premium on such bond shall be paid out of the Virginia Lottery Fund.
4348	4344
4349	4345		29.5-705. Appointment, qualifications, and salary of Director.
4350	4346
4351	4347		A. The Department shall be under the immediate supervision and direction of a Director, who shall be a person of good reputation, particularly as to honesty and integrity, and shall be subject to a thorough background investigation conducted by the Department of State Police prior to appointment. The Director shall be appointed by and serve at the pleasure of the Governor, subject to confirmation by a majority of the members elected to each house of the General Assembly if in session when the appointment is made, and if not in session, then at its next succeeding session. The Director shall receive a salary as provided in the general appropriation act.
4352	4348
4353	4349		B. The Director shall devote his full time to the performance of his official duties and shall not be engaged in any other profession or occupation.
4354	4350
4355	4351		C. Before entering upon the discharge of his duties, the Director shall take an oath that he will faithfully and honestly execute the duties of his office during his continuance therein and shall give bond in such amount as may be fixed by the Governor, conditioned upon the faithful discharge of his duties. The premium on such bond shall be paid out of the Virginia Lottery Fund.
4356	4352
4357	4353		29.5-706. Powers of the Director.
4358	4354
4359	4355		A. The Director shall supervise and administer the operation of the lottery in accordance with the provisions of this subtitle and with the rules and regulations promulgated hereunder.
4360	4356
4361	4357		B. The Director shall also:
4362	4358
4363	4359		1. Employ such deputy directors, professional, technical and clerical assistants, and other employees as may be required to carry out the functions and duties of the Department.
4364	4360
4365	4361		2. Act as secretary and executive officer of the Board.
4366	4362
4367	4363		3. Require bond or other surety satisfactory to the Director from licensed agents as provided in subsection E of 29.5-709 and Department employees with access to Department funds or lottery funds, in such amount as provided in the rules and regulations of the Board. The Director may also require bond from other employees as he deems necessary.
4368	4364
4369	4365		4. Confer regularly, but not less than four times each year, with the Board on the operation and administration of the lottery; make available for inspection by the Board, upon request, all books, records, files, and other information and documents of the Department; and advise the Board and recommend such matters as he deems necessary and advisable to improve the operation and administration of the lottery.
4370	4366
4371	4367		5. Suspend, revoke, or refuse to renew any license issued pursuant to this chapter or the rules and regulations adopted hereunder.
4372	4368
4373	4369		6. Enter into contracts for the operation of the lottery, or any part thereof, for the promotion of the lottery and into interstate and international lottery contracts with other states and nations. A contract awarded or entered into by the Director shall not be assigned by the holder thereof except by specific approval of the Director.
4374	4370
4375	4371		7. Certify monthly to the State Comptroller and the Board a full and complete statement of lottery revenues, prize disbursements, and other expenses for the preceding month.
4376	4372
4377	4373		8. Report monthly to the Governor, the Secretary of Finance, and the Chairmen of the Senate Committee on Finance and Appropriations, House Committee on Finance, and House Committee on Appropriations the total lottery revenues, prize disbursements, and other expenses for the preceding month and make an annual report, which shall include a full and complete statement of lottery revenues, prize disbursements, and other expenses to the Governor and the General Assembly.
4378	4374
4379	4375		9. Report immediately to the Governor and the General Assembly any matters that require immediate changes in the laws of the Commonwealth in order to prevent abuses and evasions of this subtitle or the rules and regulations adopted hereunder or to rectify undesirable conditions in connection with the administration or operation of the lottery.
4380	4376
4381	4377		10. Notify prize winners and appropriate state and federal agencies of the payment of prizes in excess of $600 in the manner required by the lottery rules and regulations.
4382	4378
4383	4379		11. Provide for the withholding of the applicable amount of state and federal income tax of persons claiming a prize for a winning ticket in excess of $5,001.
4384	4380
4385	4381		12. Participate in the Problem Gambling Treatment and Support Advisory Committee established pursuant to 37.2-304 by the Department of Behavioral Health and Developmental Services to enable collaboration among prevention and treatment providers and operators of legal gaming in the Commonwealth on efforts to reduce the negative effects of problem gambling.
4386	4382
4387	4383		C. The Director and the director of security or investigators appointed by the Director shall be vested with the powers of sheriff and sworn to enforce the statutes and regulations pertaining to the Department and to investigate violations of the statutes and regulations that the Director is required to enforce.
4388	4384
4389	4385		D. The Director may authorize temporary bonus or incentive programs for payments to licensed sales agents that he determines will be cost effective and support increased sales of lottery products.
4390	4386
4391	4387		29.5-707. Powers of the Board.
4392	4388
4393	4389		A. The Board shall have the power to adopt regulations governing the establishment and operation of a lottery pursuant to this subtitle. The regulations governing the establishment and operation of the lottery shall be promulgated by the Board after consultation with the Director. Such regulations shall be in accordance with the Administrative Process Act ( 2.2-4000 et seq.). The regulations shall provide for all matters necessary or desirable for the efficient, honest, and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares. The regulations, which may be amended, repealed, or supplemented as necessary, shall include the following:
4394	4390
4395	4391		1. The type or types of lottery or game to be conducted in accordance with 29.5-701.
4396	4392
4397	4393		2. The price or prices of tickets or shares in the lottery.
4398	4394
4399	4395		3. The numbers and sizes of the prizes on the winning tickets or shares, including informing the public of the approximate odds of winning and the proportion of lottery revenues (i) disbursed as prizes and (ii) returned to the Commonwealth as net revenues.
4400	4396
4401	4397		4. The manner of selecting the winning tickets or shares.
4402	4398
4403	4399		5. The manner of payment of prizes to the holders of winning tickets or shares.
4404	4400
4405	4401		6. The frequency of the drawings or selections of winning tickets or shares without limitation.
4406	4402
4407	4403		7. Without limitation as to number, the type or types of locations at which tickets or shares may be sold.
4408	4404
4409	4405		8. The method to be used in selling tickets or shares, including the sale of tickets or shares over the Internet.
4410	4406
4411	4407		9. The advertisement of the lottery in accordance with the provisions of subsection E of 29.5-717.
4412	4408
4413	4409		10. The licensing of agents to sell tickets or shares who will best serve the public convenience and promote the sale of tickets or shares. No person under the age of 18 shall be licensed as an agent. A licensed agent may employ a person who is 16 years of age or older to sell or otherwise vend tickets at the agent's place of business so long as the employee is supervised in the selling or vending of tickets by the manager or supervisor in charge at the location where the tickets are being sold. Employment of such person shall be in compliance with Chapter 5 ( 40.1-78 et seq.) of Title 40.1.
4414	4410
4415	4411		11. The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public. Notwithstanding the provisions of this subdivision, the Board shall not be required to approve temporary bonus or incentive programs for payments to licensed sales agents.
4416	4412
4417	4413		12. Apportionment of the total revenues accruing from the sale of tickets or shares and from all other sources and establishment of the amount of the special reserve fund as provided in 58.1-4022.
4418	4414
4419	4415		13. Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery.
4420	4416
4421	4417		The Department shall not be subject to the provisions of Chapter 43 ( 2.2-4300 et seq.) of Title 2.2; however, the Board shall promulgate regulations, after consultation with the Director, relative to departmental procurement that include standards of ethics for procurement consistent with the provisions of Article 6 ( 2.2-4367 et seq.) of Chapter 43 of Title 2.2 and that ensure that departmental procurement will be based on competitive principles.
4422	4418
4423	4419		The Board shall have the power to advise and recommend, but shall have no power to veto or modify, administrative decisions of the Director. However, the Board shall have the power to accept, modify, or reject any revenue projections before such projections are forwarded to the Governor.
4424	4420
4425	4421		B. The Board shall carry on a continuous study and investigation of the lottery throughout the Commonwealth to:
4426	4422
4427	4423		1. Ascertain any defects of this subtitle or the regulations issued hereunder that cause abuses in the administration and operation of the lottery and any evasions of such provisions.
4428	4424
4429	4425		2. Formulate, with the Director, recommendations for changes in this subtitle and the regulations promulgated hereunder to prevent such abuses and evasions.
4430	4426
4431	4427		3. Guard against the use of this subtitle and the regulations promulgated hereunder as a subterfuge for organized crime and illegal gambling.
4432	4428
4433	4429		4. Ensure that this law and the regulations of the Board are in such form and are so administered as to serve the true purpose of this subtitle.
4434	4430
4435	4431		C. The Board shall make a continuous study and investigation of (i) the operation and the administration of similar laws that may be in effect in other states or countries, (ii) any literature on the subject that may be published or available, (iii) any federal laws that may affect the operation of the lottery, and (iv) the reaction of Virginia citizens to the potential features of the lottery with a view to recommending or effecting changes that will serve the purpose of this subtitle.
4436	4432
4437	4433		D. The Board shall hear and decide an appeal of any denial by the Director of the licensing or revocation of a license of a lottery agent pursuant to subdivision A 10 and to subdivision B 5 of 29.5-706.
4438	4434
4439	4435		E. The Board shall have the authority to initiate procedures for the planning, acquisition, and construction of capital projects as set forth in Article 4 ( 2.2-1129 et seq.) of Chapter 11 and Article 3 ( 2.2-1819 et seq.) of Chapter 18 of Title 2.2.
4440	4436
4441	4437		29.5-708. Employees of the Department; background investigations of employees.
4442	4438
4443	4439		All persons employed by the Department shall be fingerprinted before, and as a condition of, employment. These fingerprints shall be submitted to the Federal Bureau of Investigation for a national criminal records search and to the Department of State Police for a Virginia criminal history records search. All board members, officers, and employees of any vendor of lottery online or instant ticket goods or services working directly on a contract with the Department for such goods or services shall be fingerprinted, and such fingerprints shall be submitted to the Federal Bureau of Investigation for a national criminal records search conducted by the chief security officer of the Department. A background investigation shall be conducted by the chief security officer of the Department on every applicant prior to employment by the Department. However, all division directors of the Department and employees of the Department performing duties primarily related to security matters shall be subject to a background investigation report conducted by the Department of State Police prior to employment by the Department. The Department of State Police shall be reimbursed by the Virginia Lottery for the cost of investigations conducted pursuant to this section or 29.5-705. No person who has been convicted of a felony, bookmaking, or other forms of illegal gambling, or of a crime involving moral turpitude shall be employed by the Department or on contracts with vendors described in this section.
4444	4440
4445	4441		29.5-709. Licensing of lottery sales agents; penalty.
4446	4442
4447	4443		A. No license as an agent to sell lottery tickets or shares shall be issued to any person to engage in business primarily as a lottery sales agent. Before issuing such license, the Director shall consider such factors as (i) the financial responsibility and security of the person and his business or activity; (ii) the accessibility of his place of business or activity to the public; (iii) the sufficiency of existing licensees to serve the public convenience; and (iv) the volume of expected sales.
4448	4444
4449	4445		B. For the purposes of this section, the term "person" means an individual, association, partnership, corporation, club, trust, estate, society, company, joint stock company, receiver, trustee, assignee, referee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals. "Person" also means all departments, commissions, agencies, and instrumentalities of the Commonwealth, including counties, cities, municipalities, agencies, and instrumentalities thereof.
4450	4446
4451	4447		C. The chief security officer of the Department shall conduct a background investigation, to include a Virginia criminal history records search, and fingerprints that shall be submitted to the Federal Bureau of Investigation if the Director deems a national criminal records search necessary, on applicants for licensure as lottery sales agents. The Director may refuse to issue a license to operate as an agent to sell lottery tickets or shares to any person who has been (i) convicted of a crime involving moral turpitude, (ii) convicted of bookmaking or other forms of illegal gambling, (iii) found guilty of any fraud or misrepresentation in any connection, (iv) convicted of a felony, or (v) engaged in conduct prejudicial to public confidence in the Lottery. The Director may refuse to grant a license or may suspend, revoke, or refuse to renew a license issued pursuant to this subtitle to a partnership or corporation, if he determines that any general or limited partner, or officer or director of such partnership or corporation has been (a) convicted of a crime involving moral turpitude, (b) convicted of bookmaking or other forms of illegal gambling, (c) found guilty of any fraud or misrepresentation in any connection, (d) convicted of a felony, or (e) engaged in conduct prejudicial to public confidence in the Lottery. Whoever knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for licensure to the Department for lottery sales agent is guilty of a Class 1 misdemeanor.
4452	4448
4453	4449		D. In the event an applicant is a former lottery sales agent whose license was suspended, revoked, or refused renewal pursuant to this section or 29.5-712, no application for a new license to sell lottery tickets or shares shall be considered for a minimum period of 90 days following the suspension, revocation, or refusal to renew.
4454	4450
4455	4451		E. Prior to issuance of a license, every lottery sales agent shall either (i) be bonded by a surety company entitled to do business in the Commonwealth in such amount and penalty as may be prescribed by the regulations of the Department or (ii) provide such other surety as may be satisfactory to the Director, payable to the Virginia Lottery and conditioned upon the faithful performance of his duties.
4456	4452
4457	4453		F. Every licensed agent shall prominently display his license, or a copy thereof, as provided in the regulations of the Department.
4458	4454
4459	4455		29.5-710. Authority of persons licensed as lottery sales agents; annual fee.
4460	4456
4461	4457		A. Notwithstanding any other provision of law, any person licensed as provided in this subtitle is hereby authorized to act as a lottery sales agent.
4462	4458
4463	4459		B. The rules and regulations of the Department shall provide for an initial licensing fee and an annual license review fee to be collected from each lottery sales agent. Such fee, as promulgated by rule and regulation of the Board, shall be designed to recover all or such portion of the installation and annual operational costs borne by the Department in providing services to the agent.
4464	4460
4465	4461		29.5-711. Meaning of "gross receipts."
4466	4462
4467	4463		A. Notwithstanding the provisions of Chapter 37 ( 58.1-3700 et seq.) of Title 58.1 or 29.5-812 relating to local license taxes, the term "gross receipts" as used in Chapter 37 shall include only the compensation actually paid to a licensed sales agent as provided by rule or regulation adopted by the Board consistent with the provisions of subdivision A 11 of 29.5-707.
4468	4464
4469	4465		B. Unless otherwise provided by contract, any person licensed as a lottery agent who makes rental payments for the business premises on which state lottery tickets are sold on the basis of retail sales shall have that portion of rental payment based on sales of state lottery tickets or shares computed on the basis of the compensation received as a lottery agent from the Virginia Lottery.
4470	4466
4471	4467		29.5-712. Suspension and revocation of licenses.
4472	4468
4473	4469		The Director may suspend, revoke, or refuse to renew, after notice and a hearing, any license issued pursuant to this subtitle. Such license may, however, be temporarily suspended by the Director without prior notice, pending any prosecution, hearing, or investigation, whether by a third party or by the Director. A license may be suspended, revoked, or refused renewal by the Director for one or more of the following reasons:
4474	4470
4475	4471		1. Failure to properly account for lottery tickets received or the proceeds of the sale of lottery tickets;
4476	4472
4477	4473		2. Failure to file a bond if required by the Director or to comply with instructions and rules and regulations of the Department concerning the licensed activity, especially with regard to the prompt payment of claims;
4478	4474
4479	4475		3. Conviction of any offense referenced in subsection C of 29.5-709 subsequent to licensure;
4480	4476
4481	4477		4. Failure to file any return or report, to keep records, or to pay any fees or other charges required by this subtitle;
4482	4478
4483	4479		5. Any act of fraud, deceit, misrepresentation, or conduct prejudicial to public confidence in the Commonwealth lottery;
4484	4480
4485	4481		6. If the number of lottery tickets sold by the lottery sales agent is insufficient to meet administrative costs and public convenience is adequately served by other licensees;
4486	4482
4487	4483		7. A material change, since issuance of the license, with respect to any matters required to be considered by the Director under this subtitle; or
4488	4484
4489	4485		8. Other factors established by Department regulation.
4490	4486
4491	4487		29.5-713. Prohibited actions; penalty.
4492	4488
4493	4489		Any person who wrongfully and fraudulently uses, disposes of, conceals, or embezzles any public money or funds associated with the operation of the lottery is guilty of a Class 3 felony. Any person who wrongfully and fraudulently tampers with any equipment or machinery used in the operation of the lottery is guilty of a Class 3 felony. Any person who makes inaccurate entries regarding a financial accounting of the lottery in order to conceal the truth, defraud the Commonwealth, and obtain money to which he is not entitled is guilty of a Class 3 felony.
4494	4490
4495	4491		29.5-714. License required for "instant ticket" games or contests; penalty.
4496	4492
4497	4493		No person who owns or is employed by any retail establishment in the Commonwealth shall use any "instant ticket" game or contest for the purpose of promoting or furthering the sale of any product without first obtaining a license to do so from the Director. For the purposes of this section, an "instant ticket" game or contest means a game of chance played on a paper ticket or card where (i) a person may receive gifts, prizes, or gratuities and (ii) winners are determined by preprinted concealed letters, numbers, or symbols which, when exposed, reveal immediately whether the player has won a prize or entry into a prize drawing, but shall not include any "instant ticket" game or contest licensed by the Virginia Gaming Commission pursuant to Chapter 2 ( 29.5-200 et seq.). The fact that no purchase is required in order to participate shall not exclude such game or contest from the provisions of this section; however, nothing in this section shall prohibit any retail establishment from using a Virginia lottery ticket to promote or further the sale of any products except those having both a federal and state excise tax placed on them. Any person convicted of a violation of this section is guilty of a Class 3 misdemeanor.
4498	4494
4499	4495		29.5-715. Unclaimed prizes.
4500	4496
4501	4497		A. Unclaimed prizes for a winning ticket or share shall be retained by the Director for the person entitled thereto for 180 days after the drawing in which the prize was won in the case of a drawing prize and for 180 days after the announced end of the lottery game in the case of a prize determined in any manner other than by means of a drawing. If no claim is made for the prize within the 180 days, the Director shall deem such prize forfeited by the person entitled to claim such winnings.
4502	4498
4503	4499		B. All prizes deemed forfeited pursuant to subsection A shall be paid into the Literary Fund. The Director may develop procedures, to be approved by the Auditor of Public Accounts, for estimating the cumulative total of such unclaimed prizes in any lottery game in lieu of specifically identifying unclaimed prizes where such specific identification would not be cost effective. The Director, within 60 days after the end of each 180-day retention period, shall report the total value of prizes forfeited at the end of such period to the Comptroller, who shall promptly transfer the total of such prizes to the Literary Fund. The total value of prizes forfeited during the fiscal year shall be audited by the Auditor of Public Accounts in accordance with 29.5-719. In the case of a prize payable over time on one or more winning tickets, if one or more winning tickets is not claimed within the 180-day redemption period, the Department shall transfer the then current monetary value of such portion of the prize remaining unclaimed to the Literary Fund in accordance with procedures approved by the State Treasurer. "Current monetary value" shall be determined by the net proceeds from the sale of that portion of jackpot securities allocated to the unclaimed winner plus the amount of the initial cash payment.
4504	4500
4505	4501		C. Subsection B shall not apply to prizes of $25 or less resulting from any lottery game other than a lottery game in which a drawing determined the prize. The Board shall adopt regulations for the disposition of all such unclaimed prizes of $25 or less not resulting from a drawing. Such disposition shall be directed in whole or in part to either the Virginia Lottery Fund or to other forms of compensation to licensed sales agents.
4506	4502
4507	4503		D. For purposes of this section, "prize" refers to a cash prize. In the case of a prize payable over time and not as a lump sum payment, "prize" means the present cash value of the prize, not the value paid over time.
4508	4504
4509	4505		E. In accordance with the provisions of the Soldiers' and Sailors' Civil Relief Act of 1940 (50 App. U.S.C.A. 525), any person whose unclaimed prize was deemed forfeited pursuant to subsection A while he was in active military service may claim such forfeited prize by presenting his winning ticket to the Director no later than 180 days after his discharge from active military service. Within 30 days of such presentation, the Director shall verify the claim and report the verification to the Comptroller. The Comptroller shall promptly pay the verified claim first from funds available in the Unclaimed Property Trust Fund; if such funds are insufficient, then, from any undesignated, unreserved year-end balance of the general fund. All verified claims shall be paid in accordance with the Board's rules and regulations then in effect regarding the manner of payment of prizes to the holders of winning tickets or shares.
4510	4506
4511	4507		29.5-716. Deposit of moneys received by agents; performance of functions, etc., in connection with operation of lottery; compensation of agents.
4512	4508
4513	4509		A. The Director shall require all lottery sales agents to deposit to the credit of the Virginia Lottery Fund in banks, designated by the State Treasurer, all moneys received by such agents from the sale of lottery tickets or shares, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares, and to file with the Director, or his designated agents, reports of their receipts, transactions, and disbursements pertaining to the sale of lottery tickets in such form and containing such information as he may require. Such deposits and reports shall be submitted at such times and within such intervals as shall be prescribed by rule and regulation of the Department. The Director may arrange for any person, including a bank, to perform such functions, activities, or services in connection with the operation of the lottery as he may deem advisable pursuant to this subtitle and the rules and regulations of the Department, and such functions, activities, and services shall constitute lawful functions, activities, and services of the person.
4514	4510
4515	4511		B. The rules and regulations of the Department shall provide for a service charge to the licensed agent if any payor bank dishonors a check or draft tendered for deposit to the credit of the Virginia Lottery Fund by a licensed agent or for an electronic transfer of funds to the Virginia Lottery Fund from the account of a licensed agent for money received from the sale of lottery tickets.
4516	4512
4517	4513		The regulations of the Department shall provide for a service charge and penalty to a licensed agent if any payor bank dishonors a check or draft from the account of a licensed agent tendered for payment of any prize by a licensed agent to any claimant. Any such charge or penalty so collected by the Department shall be used first to reimburse the claimant for any charges or penalties incurred by him as a result of the licensed agent's dishonored check tendered as payment of any prize and the remainder to offset the Department's administrative costs.
4518	4514
4519	4515		C. A licensed agent shall be charged interest as provided in 58.1-15 on the money that is not timely paid to the Virginia Lottery Fund in accordance with the rules and regulations of the Department and shall in addition thereto pay penalties as provided by rules and regulations of the Department.
4520	4516
4521	4517		D. Should the Department refer the debt of any licensed agent to the Attorney General, the Department of Taxation as provided in the Setoff Debt Collection Act ( 58.1-520 et seq.), or any other central collection unit of the Commonwealth, an additional service charge shall be imposed in the amount necessary to cover the administrative costs of the Department and agencies to which such debt is referred.
4522	4518
4523	4519		E. Notwithstanding the provisions of Chapter 5 ( 8.01-257 et seq.) of Title 8.01, in any action for the collection of a debt owed by any licensed agent to the lottery, venue shall lie in the City of Richmond.
4524	4520
4525	4521		F. All proceeds from the sale of lottery tickets or shares received by a person in the capacity of a sales agent shall constitute a trust fund until deposited into the Virginia Lottery Fund either directly or through the Department's authorized collection representative. Proceeds shall include cash proceeds of the sale of any lottery products, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares. Sales agents shall be personally liable for all proceeds.
4526	4522
4527	4523		G. If the Director determines that the deposit or collection from any sales agent of any moneys or proceeds under this section is or will be jeopardized or will otherwise be delayed, he may adjust either the time or the interval or both for such deposits or collections of any sales agent; require that all such moneys or proceeds shall be kept separate and apart from all other funds and assets and shall not be commingled with any other funds or assets prior to their deposit or collection under this section; and require such other security of any sales agent as he may deem advisable to ensure the timely deposit or collection of moneys or proceeds to the credit of the Virginia Lottery Fund.
4528	4524
4529	4525		Collection of moneys or proceeds "is or will be jeopardized or will otherwise be delayed" when (i) a check, draft, or electronic funds transfer to the credit of the Virginia Lottery Fund is dishonored as described in subsection B; (ii) an independent auditor states that the lottery sales agent's financial condition raises substantial doubt about its ability to continue as a going concern; or (iii) the lottery sales agent (a) closes for business or fails to maintain normal business hours without reasonable explanation, (b) has a credit record reflecting recent actions that cast doubt as to its creditworthiness, (c) states it has or may have cash flow problems or may be unable to meet its financial obligations, (d) states it may seek the protection of the federal bankruptcy or state insolvency law, (e) refuses to purchase additional lottery tickets or returns tickets ordered without good cause, or (f) does any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect moneys or proceeds that are or will become due and payable to the Virginia Lottery Fund.
4530	4526
4531	4527		29.5-717. Virginia Lottery Fund.
4532	4528
4533	4529		A. All moneys received from the sale of lottery tickets or shares, less payment for prizes and compensation of agents as authorized by regulation and any other revenues received under this subtitle, shall be placed in a special fund known as the "Virginia Lottery Fund." Notwithstanding any other provisions of law, interest earned from moneys in the Virginia Lottery Fund shall accrue to the benefit of such Fund.
4534	4530
4535	4531		B. The total costs for the operation and administration of the lottery shall be funded from the Virginia Lottery Fund and shall be in such amount as provided in the general appropriation act. Appropriations to the Department during any fiscal year beginning on and after July 1, 1989, exclusive of agent compensation, shall at no time exceed 10 percent of the total annual estimated gross revenues to be generated from lottery sales. However, should it be anticipated at any time by the Director that such operational and administrative costs for a fiscal year will exceed the limitation provided herein, the Director shall immediately report such information to the Board, the Governor, and the Chairmen of the Senate Committee on Finance and Appropriations and the House Committee on Appropriations. From the moneys in the Fund, the Comptroller shall establish a special reserve fund in such amount as shall be provided by regulation of the Department for (i) operation of the lottery, (ii) use if the game's pay-out liabilities exceed its cash on hand, or (iii) enhancement of the prize pool with income derived from lending securities held for payment of prize installments, which lending of securities shall be conducted in accordance with lending programs approved by the Department of the Treasury.
4536	4532
4537	4533		C. The Comptroller shall transfer to the Lottery Proceeds Fund established pursuant to 29.5-718, less the special reserve fund, the audited balances of the Virginia Lottery Fund at the close of each fiscal year. The transfer for each year shall be made in two parts: (i) on or before June 30, the Comptroller shall transfer balances of the Virginia Lottery Fund for the fiscal year, based on an estimate determined by the Virginia Lottery, and (ii) no later than 10 days after receipt of the annual audit report required by 29.5-719, the Comptroller shall transfer to the Lottery Proceeds Fund the remaining audited balances of the Virginia Lottery Fund for the fiscal year. If such annual audit discloses that the actual revenue is less than the estimate on which the transfer was based, the State Comptroller shall transfer the difference between the actual revenue and the estimate from the Lottery Proceeds Fund to the Virginia Lottery Fund.
4538	4534
4539	4535		D. In addition to such other funds as may be appropriated, 100 percent of the lottery revenues transferred to the Lottery Proceeds Fund shall be appropriated entirely and solely for the purpose of public education in the Commonwealth unless otherwise redirected pursuant to Article X, Section 7-A of the Constitution of Virginia. The additional appropriation of lottery revenues to local school divisions for public education purposes consistent with this provision shall be used for operating, capital outlay, or debt service expenses, as determined by the appropriation act. The additional appropriation of lottery revenues shall not be used by any local school division to reduce its total local expenditures for public education in accordance with the provisions of the general appropriation act.
4540	4536
4541	4537		E. As a function of the administration of this subtitle, funds may be expended for the purposes of reasonably informing the public concerning (i) the facts embraced in the subjects contained in subdivisions A 1 through 7 of 29.5-707 and (ii) the fact that the net proceeds are paid into the Lottery Proceeds Fund of the Commonwealth, but no funds shall be expended for the primary purpose of inducing persons to participate in the lottery.
4542	4538
4543	4539		29.5-718. Lottery Proceeds Fund.
4544	4540
4545	4541		A. There is hereby created in the state treasury a special nonreverting fund to be known as the Lottery Proceeds Fund, referred to in this section as the "Fund." The Fund shall be established on the books of the Comptroller and interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. The Fund shall consist of amounts deposited into it from the net revenues of any lottery conducted by the Commonwealth pursuant to Article X, Section 7-A of the Constitution of Virginia.
4546	4542
4547	4543		B. For purposes of any appropriation act enacted by the General Assembly and for the purposes of the Comptroller's preliminary and final annual reports required by 2.2-813, all deposits to and appropriations from the Lottery Proceeds Fund shall be accounted for and considered to be a part of the general fund of the state treasury.
4548	4544
4549	4545		29.5-719. Post-audit of accounts and transactions of Department; post-compliance audits.
4550	4546
4551	4547		A regular post-audit shall be conducted of all accounts and transactions of the Department. An annual audit of a fiscal and compliance nature of the accounts and transactions of the Department shall be conducted by the Auditor of Public Accounts on or before August 15 of each year. The cost of the annual audit and post-audit examinations shall be borne by the Department. The Board may order such other audits as it deems necessary and desirable.
4552	4548
4553	4549		29.5-720. Employees of the Department.
4554	4550
4555	4551		Employees of the Department shall be exempt from the provisions of the Virginia Personnel Act, Chapter 29 ( 2.2-2900 et seq.) of Title 2.2. Personnel actions shall be taken without regard to race, sex, sexual orientation, gender identity, color, ethnic or national origin, religion, age, disability, or political affiliation.
4556	4552
4557	4553		29.5-721. Judicial review.
4558	4554
4559	4555		The action of the Board in granting or denying a license or registration or in suspending or revoking any license or registration under the provisions of this subtitle shall be subject to review in accordance with the provisions of the Administrative Process Act ( 2.2-4000 et seq.). Such review shall be limited to the evidential record of the proceedings provided by the Board. Both the petitioner and the Board shall have the right to appeal to the Court of Appeals from any order of the court.
4560	4556
4561	4557		CHAPTER 8.
4562	4558
4563	4559		ADMINISTRATION OF TICKETS AND PRIZES.
4564	4560
4565	4561		29.5-800. Lottery tickets to bear telephone number for compulsive gamblers.
4566	4562
4567	4563		All lottery tickets shall bear a toll-free telephone number for "Gamblers Anonymous" or other organization that provides assistance to compulsive gamblers.
4568	4564
4569	4565		29.5-801. Posting of illegal gaming tip line.
4570	4566
4571	4567		Every licensed lottery sales agent shall post in a conspicuous place in its retail establishment a sign that bears the toll-free telephone number and website for the illegal gaming tip line established and administered by the Office of the Gaming Enforcement Coordinator in the Department of State Police pursuant to 52-54 for members of the public to report concerns about, or suspected instances of, illegal gaming activities.
4572	4568
4573	4569		29.5-802. Right to prize not assignable; exceptions.
4574	4570
4575	4571		A. No right of any person to a prize drawn shall be assignable, except that: (i) payment of any prize drawn may be paid according to the terms of a deceased prize winner's beneficiary designation or similar form filed with the Department or to the estate of a deceased prize winner who has not completed such a form; (ii) the prize to which the winner is entitled may be paid to a person pursuant to an appropriate judicial order; and (iii) payment of any prize drawn may be paid in accordance with the provisions of 29.5-811. Payments made according to the terms of a deceased prize winner's beneficiary designation or similar form filed with the Department are effective by reason of the contract involved and this statute and are not to be considered as testamentary or subject to Chapter 4 ( 64.2-400 et seq.) of Title 64.2. The Director shall be discharged of all liability upon payment of a prize pursuant to this section.
4576	4572
4577	4573		B. Investments of prize proceeds made by the Department to fund the payment of an annuitized prize are to be held in the name of the Department or the Commonwealth and not in the name of the prize winner. Any claim of a prize winner to a future payment remains inchoate until the date the payment is due under Department regulations.
4578	4574
4579	4575		C. Except as provided in Chapter 19 ( 63.2-1900 et seq.) of Title 63.2 and this subtitle, no lottery prize or installment thereof may be subject to garnishment or to a lien of any kind until such prize or installment thereof has been paid or distributed.
4580	4576
4581	4577		D. Whenever the Department or the Director is or may be named as a party in any proceeding instituted by or on behalf of one or more persons who claim ownership of a winning lottery ticket, prize, share, or portion thereof for the purpose of determining the ownership or right to such ticket, prize, share, or portion thereof, the Director may voluntarily pay or tender the prize, share, or portion thereof into the circuit court where the action is filed, or may be ordered to do so by the court, and shall thereupon be discharged from all liability as between the claimants of such ticket, prize, share, or portion thereof without regard to whether such payment was made voluntarily or pursuant to a court order.
4582	4578
4583	4579		Nothing in this section shall be deemed to constitute a waiver of the sovereign immunity of the Commonwealth or to authorize any attachment, garnishment, or lien against the prize, share, or portion thereof paid into the court except as permitted by subsection C.
4584	4580
4585	4581		29.5-803. Price of tickets or shares; who may sell; penalty.
4586	4582
4587	4583		No person shall sell a ticket or share at any price or at any location other than that fixed by rules and regulations of the Department. No person other than a licensed lottery sales agent or his employee shall sell lottery tickets or shares, except that nothing in this section shall be construed to prevent any person from giving lottery tickets or shares to another person over the age of 18 years as a gift. No person shall operate a ticket courier service in the Commonwealth.
4588	4584
4589	4585		Any person convicted of violating this section is guilty of a Class 1 misdemeanor.
4590	4586
4591	4587		29.5-804. Method of payment for purchase of tickets or shares.
4592	4588
4593	4589		Lottery sales agents licensed in accordance with this subtitle shall accept only cash or debit cards in payment for the purchase of lottery tickets or shares.
4594	4590
4595	4591		29.5-805. Sale of ticket or share to person under 18 prohibited; penalty.
4596	4592
4597	4593		No ticket or share shall be sold to or redeemed from any person under the age of 18 years. Any licensee who knowingly sells or offers to sell or redeem a lottery ticket or share to or from any person under the age of 18 years is guilty of a Class 1 misdemeanor.
4598	4594
4599	4595		29.5-806. Gift to minor prohibited; penalty.
4600	4596
4601	4597		No ticket or share shall be given as a gift or otherwise to any person under the age of 18 years. Any person who knowingly gives a lottery ticket or share to any person under the age of 18 years is guilty of a Class 3 misdemeanor.
4602	4598
4603	4599		29.5-807. Alteration and forgery; presentation of counterfeit or altered ticket or share; penalty.
4604	4600
4605	4601		Any person who forges, alters, or fraudulently makes any lottery ticket or share with intent to present for payment or to transfer to another person to be presented for payment or knowingly presents for payment or transfers to another person to be presented for payment such forged, altered, or fraudulently made counterfeit lottery ticket or share sold pursuant to this subtitle is guilty of a Class 6 felony.
4606	4602
4607	4603		29.5-808. Larceny of tickets; fraudulent notification of prizes; penalty.
4608	4604
4609	4605		A. Any person who steals or otherwise unlawfully converts to his own or another's use a lottery ticket, prize, share, or portion thereof is guilty of larceny. For purposes of this subsection, the value of a lottery ticket, prize, share, or portion thereof shall be deemed to be the greater of its face amount or its redemption value.
4610	4606
4611	4607		B. Any person who, with intent to defraud, steal, embezzle, or violate the provisions of 18.2-186.3, designs, makes, prints, or otherwise produces, in whole or in part, a document or writing, whether in printed or electronic form, that falsely purports to be correspondence from or on behalf of the lottery is guilty of a Class 5 felony.
4612	4608
4613	4609		Jurisdiction shall lie and prosecution may proceed under this subsection in any county or city (i) in which the document was created; (ii) from which it was sent, regardless of the form of delivery; or (iii) in which it was received, regardless of the form of delivery.
4614	4610
4615	4611		29.5-809. Ticket discounting; civil penalties.
4616	4612
4617	4613		A. As used in this section, "ticket discounting" means reselling or having a person other than the prize winner claim a winning lottery ticket or buying or claiming a winning lottery ticket for the purpose of assisting the original prize winner with concealing his identity as a prize winner.
4618	4614
4619	4615		B. No person shall engage in the practice of ticket discounting.
4620	4616
4621	4617		C. Any person found to have engaged in the practice of ticket discounting shall be fined as determined by the Director (i) for prizes of less than $1,000, not more than $250; (ii) for prizes of $1,000 or more but less than $5,000, more than $250 but not more than $500; and (iii) for prizes of $5,000 or more, no less than $1,000. All fines recovered for violations of this section shall be paid into the state treasury to the credit of the Literary Fund, in accordance with 19.2-353.
4622	4618
4623	4619		29.5-810. Certain persons ineligible to purchase tickets or shares or receive prizes.
4624	4620
4625	4621		A. No ticket or share shall be purchased by, and no prize shall be paid on a ticket purchased by or transferred to, any Board member, officer, or employee of the lottery, or any board member, officer or employee of any vendor to the lottery of lottery online or instant ticket goods or services working directly on a contract with the Department for such goods or services, or any person residing in the same household of such member, officer, or employee or any person under the age of 18 years, or transferee of any such persons.
4626	4622
4627	4623		B. Only natural persons may purchase lottery tickets and claim prize winnings. In all cases, the identity and social security number of all natural persons who receive a prize greater than $100 from a winning ticket redeemed at any Department office shall be provided in order to comply with this section and 29.5-805, 29.5-806, and 29.5-813 and Chapter 19 ( 63.2-1900 et seq.) of Title 63.2.
4628	4624
4629	4625		29.5-811. Voluntary assignment of lottery prizes or pledge as collateral for a loan; requirements for the assignees and lenders.
4630	4626
4631	4627		A. Lottery prizes, payable in installments over a period of time, excluding prizes payable for the winner's life, may be voluntarily assigned or pledged as collateral for a loan, in whole or in part, by the person entitled to such installments, by written contract affirming that the requirements of this section have been met and endorsed by written order of a court of competent jurisdiction after a hearing. The order shall specify the name, address, and social security number or tax identification number of the assignee or lender and shall specifically describe the payments be assigned or pledged as collateral by date and gross pre-tax amount. The Department shall be given notice of any hearing held pursuant to this section and shall have the right to appear and participate in such hearing. Venue for hearings held pursuant to this section shall be in the Circuit Court of the City of Richmond.
4632	4628
4633	4629		The rate charged for any such assignment or loan shall not exceed 15 percent.
4634	4630
4635	4631		The contract shall:
4636	4632
4637	4633		1. Be signed by the assignor and the assignee or the lender and the borrower, and the assignor or borrower shall affirm the assignment or loan has been voluntarily executed.
4638	4634
4639	4635		2. Include or be accompanied by a sworn statement attesting that the assignor or borrower (i) is of sound mind and not acting under duress; (ii) has been advised in writing by the assignee or lender to seek independent legal counsel and independent financial counsel concerning the implications of the assignment or loan, including the tax consequences, and has either received such advice or knowingly waived such advice in writing; (iii) understands that he is relinquishing or limiting his rights to receive the lottery proceeds; and (iv) has received from the Virginia Lottery, in response to a written request therefor, confirmation of the assignee's or lender's registration with the Virginia Lottery in accordance with subsection E.
4640	4636
4641	4637		3. Include a disclosure statement setting forth (i) the amounts assigned or loaned; (ii) the dates such amounts are payable; (iii) the purchase price paid for the assignment or loan; (iv) the rate of discount to present value, assuming daily compounding and funding on the contract date; (v) the amount of any fees associated with the assignment or loan and by whom such fees are payable; and (vi) the tax identification number of the assignee.
4642	4638
4643	4639		4. Expressly state that the assignor or borrower has three business days after signing the contract to cancel the assignment or loan.
4644	4640
4645	4641		5. Expressly state that the assignee or lender is eligible to purchase, share, or receive prizes of the Virginia Lottery pursuant to 29.5-805, 29.5-806, and subsection A of 29.5-810, and that the Virginia Lottery has complied with subsection B of 29.5-810 in that the original prizewinner is, or if deceased, was, a natural person if and to the extent that the prize was awarded on or after the effective date pursuant to subsection B of 29.5-810.
4646	4642
4647	4643		6. Expressly state that no amounts assigned or loaned are subject to setoff pursuant to Article 21 ( 58.1-520 et seq.) of Chapter 3 of Title 58.1.
4648	4644
4649	4645		B. The Commonwealth, the Virginia Lottery, and any employee or representative of either shall be indemnified and held harmless upon payment of amounts due as set forth in the court order.
4650	4646
4651	4647		C. The Virginia Lottery may establish a reasonable fee to process the assignments provided for in this section and to receive, review, and file the registration required by subsection E and confirm compliance with the registration requirements. The fee shall be reflective of the direct and indirect costs of processing the assignments or registrations.
4652	4648
4653	4649		D. Notwithstanding the provisions of this section, the Commonwealth and the Virginia Lottery shall not accept any assignment if either of the following has occurred:
4654	4650
4655	4651		1. Federal law provides that the right to assign lottery proceeds is deemed receipt of income in the year the lottery prize is won for all installment lottery prize winners. "Federal law" includes statutory law, rulings of courts of competent jurisdiction, and published rulings by the Internal Revenue Service.
4656	4652
4657	4653		2. State law provides that the right to assign lottery proceeds is deemed receipt of income in the year the lottery prize is won for all installment lottery prize winners. "State law" includes statutory law, rulings of courts of competent jurisdiction, and published rulings by the Department of Taxation.
4658	4654
4659	4655		E. An assignee, prospective assignee, lender, or prospective lender shall not make any representation in any written or oral communications with a lottery winner that implies that the assignee, prospective assignee, lender, or prospective lender is associated with or an agent of the Virginia Lottery. Every prospective assignee or prospective lender shall register with the Virginia Lottery prior to contracting for any assignment or loan pursuant to this section. The registration shall include (i) the assignee's or lender's standard information packet or materials given or sent to prospective assignees or borrowers; (ii) the assignee's or lender's standard form of agreement; (iii) the assignee's or lender's federal tax identification number; and (iv) where applicable, the assignee's or lender's most recent public financial statement. The Director may deny, suspend, or revoke a registration for a violation of this subtitle or for such other reasons as the Board, by regulation, may establish.
4660	4656
4661	4657		29.5-812. Exemption of lottery prizes and sales of tickets from state and local taxation.
4662	4658
4663	4659		Except as provided in 29.5-711 and Chapter 3 ( 58.1-300 et seq.) of Title 58.1, no state or local taxes of any type whatsoever shall be imposed upon any prize awarded or upon the sale of any lottery ticket sold pursuant to the Virginia Lottery Law.
4664	4660
4665	4661		29.5-813. Set-off of debts to the Commonwealth from prizes.
4666	4662
4667	4663		The Director shall establish by rule and regulation a set-off debt collection program in accordance with the provisions of the Setoff Debt Collection Act ( 58.1-520 et seq.), wherein certain prizes shall be subjected to delinquent debts of agencies and institutions of the Commonwealth. The Director shall be responsible for the administration of the program and shall ensure by rule and regulation of the Department that any agency eligible to participate in the Setoff Debt Collection Act shall be eligible to participate in the lottery prize set-off. The Tax Commissioner shall transmit to the Director, at such intervals as requested by the Director, a listing of claimant agencies and delinquent debts owed thereto.
4668	4664
4669	4665		29.5-814. Disclosure of identity of winners by the Department.
4670	4666
4671	4667		Except as provided in subsection B of 29.5-810, the Department shall not disclose information about the identity of an individual lottery winner if the value of the prize won by the winner exceeds $10 million, unless the winner consents in writing to such disclosure.
4672	4668
4673	4669		37.2-314.2. Problem Gambling Treatment and Support Fund.
4674	4670
4675	4671		A. As used in this section:
4676	4672
4677	4673		"Compulsive gambling" means persistent and recurrent problem gambling behavior leading to clinically significant impairment or distress, as indicated by an individual exhibiting four or more of the criteria as defined by the Diagnostic Statistical Manual of Mental Disorders in a 12-month period and where the behavior is not better explained by a manic episode.
4678	4674
4679	4675		"Problem gambling" means a gambling behavior that causes disruptions in any major area of life, including the psychological, social, or vocational areas of life, but does not fulfill the criteria for diagnosis as a gambling disorder.
4680	4676
4681	4677		B. There is hereby created in the state treasury a special nonreverting fund to be known as the Problem Gambling Treatment and Support Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All revenue accruing to the Fund pursuant to subsection A of 58.1-4038 29.5-408 and moneys required to be deposited into the Fund pursuant to Chapter 41 Chapter 3 ( 58.1-4100 29.5-300 et seq.) of Title 58.1 29.5 shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purposes of (i) providing counseling and other support services for compulsive and problem gamblers, (ii) developing and implementing compulsive and problem gambling treatment and prevention programs, and (iii) providing grants to support organizations that provide assistance to compulsive and problem gamblers. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Commissioner.
4682	4678
4683	4679		52-53. Definitions.
4684	4680
4685	4681		As used in this chapter, unless the context requires a different meaning:
4686	4682
4687	4683		"Coordinator" means the position of the Gaming Enforcement Coordinator established pursuant to 52-54.
4688	4684
4689	4685		"Department" means the Department of State Police.
4690	4686
4691	4687		"Gaming laws" means the laws regulating gambling under Article 1 ( 18.2-325 et seq.) of Chapter 8 of Title 18.2, charitable gaming under Article 1.1:1 Chapter 2 ( 18.2-340.15 29.5-200 et seq.) of Chapter 8 of Title 18.2 29.5, lottery games under Article 1 ( 58.1-4000 et seq.) of Chapter 40 of Title 58.1, casino gaming under Chapter 3 ( 29.5-300 et seq.) of Title 29.5, sports betting under Article 2 Chapter 4 ( 58.1-4030 29.5-400 et seq.) of Chapter 40 of Title 58.1 29.5, casino gaming under Chapter 41 ( 58.1-4100 et seq.) of Title 58.1, fantasy contests under Chapter 51 5 ( 59.1-556 29.5-500 et seq.) of Title 59.1 29.5, horse racing, historical horse racing, and simulcast horse racing with pari-mutuel wagering under Chapter 29 6 ( 59.1-364 29.5-600 et seq.) of Title 59.1 29.5, lottery games under Subtitle II ( 29.5-700 et seq.) of Title 29.5, any regulations promulgated pursuant to such laws, and any other federal, state, or local laws the Gaming Enforcement Coordinator deems relevant.
4692	4688
4693	4689		"Superintendent" means the Superintendent of State Police.
4694	4690
4695	4691		52-54. Office of the Gaming Enforcement Coordinator established; purpose; duties.
4696	4692
4697	4693		A. The Superintendent shall designate a Department employee to serve as the Gaming Enforcement Coordinator. The purpose of the office of the Coordinator shall be to synchronize the enforcement of gaming laws by state and local law enforcement, and to serve as a liaison between such agencies and federal law enforcement.
4698	4694
4699	4695		B. The Coordinator shall have the following duties:
4700	4696
4701	4697		1. Coordinating enforcement of the Commonwealth's gaming laws by the Department, the Department of Agriculture and Consumer Services Virginia Gaming Commission, and all other state agencies; attorneys for the Commonwealth; and local law enforcement;
4702	4698
4703	4699		2. Acting as a liaison between the federal government and the agencies identified in subdivision 1 for purposes of any federal investigation into gaming activities;
4704	4700
4705	4701		3. Establishing, advertising, and administering a tip line, which may be accessed by phone and by Internet, for members of the public to report concerns about, or suspected instances of, gaming activities; and
4706	4702
4707	4703		4. Performing any other duties as are necessary to promote and enable the equitable enforcement of gaming laws in the Commonwealth.
4708	4704
4709	4705		58.1-3. Secrecy of information; penalties.
4710	4706
4711	4707		A. Except in accordance with a proper judicial order or as otherwise provided by law, the Tax Commissioner or agent, clerk, commissioner of the revenue, treasurer, or any other state or local tax or revenue officer or employee, or any person to whom tax information is divulged pursuant to this section or 58.1-512 or 58.1-2712.2, or any former officer or employee of any of the aforementioned offices shall not divulge any information acquired by him in the performance of his duties with respect to the transactions, property, including personal property, income or business of any person, firm or corporation. Such prohibition specifically includes any copy of a federal return or federal return information required by Virginia law to be attached to or included in the Virginia return. This prohibition shall apply to any reports, returns, financial documents or other information filed with the Attorney General pursuant to the provisions of Article 3 ( 3.2-4204 et seq.) of Chapter 42 of Title 3.2. Any person violating the provisions of this section is guilty of a Class 1 misdemeanor. The provisions of this subsection shall not be applicable, however, to:
4712	4708
4713	4709		1. Matters required by law to be entered on any public assessment roll or book;
4714	4710
4715	4711		2. Acts performed or words spoken, published, or shared with another agency or subdivision of the Commonwealth in the line of duty under state law;
4716	4712
4717	4713		3. Inquiries and investigations to obtain information as to the process of real estate assessments by a duly constituted committee of the General Assembly, or when such inquiry or investigation is relevant to its study, provided that any such information obtained shall be privileged;
4718	4714
4719	4715		4. The sales price, date of construction, physical dimensions or characteristics of real property, or any information required for building permits;
4720	4716
4721	4717		5. Copies of or information contained in an estate's probate tax return, filed with the clerk of court pursuant to 58.1-1714, when requested by a beneficiary of the estate or an heir at law of the decedent or by the commissioner of accounts making a settlement of accounts filed in such estate;
4722	4718
4723	4719		6. Information regarding nonprofit entities exempt from sales and use tax under 58.1-609.11, when requested by the General Assembly or any duly constituted committee of the General Assembly;
4724	4720
4725	4721		7. Reports or information filed with the Attorney General by a Stamping Agent pursuant to the provisions of Article 3 ( 3.2-4204 et seq.), when such reports or information are provided by the Attorney General to a tobacco products manufacturer who is required to establish a qualified escrow fund pursuant to 3.2-4201 and are limited to the brand families of that manufacturer as listed in the Tobacco Directory established pursuant to 3.2-4206 and are limited to the current or previous two calendar years or in any year in which the Attorney General receives Stamping Agent information that potentially alters the required escrow deposit of the manufacturer. The information shall only be provided in the following manner: the manufacturer may make a written request, on a quarterly or yearly basis or when the manufacturer is notified by the Attorney General of a potential change in the amount of a required escrow deposit, to the Attorney General for a list of the Stamping Agents who reported stamping or selling its products and the amount reported. The Attorney General shall provide the list within 15 days of receipt of the request. If the manufacturer wishes to obtain actual copies of the reports the Stamping Agents filed with the Attorney General, it must first request them from the Stamping Agents pursuant to subsection C of 3.2-4209. If the manufacturer does not receive the reports pursuant to subsection C of 3.2-4209, the manufacturer may make a written request to the Attorney General, including a copy of the prior written request to the Stamping Agent and any response received, for copies of any reports not received. The Attorney General shall provide copies of the reports within 45 days of receipt of the request.
4726	4722
4727	4723		B. 1. Nothing contained in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof or the publication of delinquent lists showing the names of taxpayers who are currently delinquent, together with any relevant information which in the opinion of the Department may assist in the collection of such delinquent taxes. Notwithstanding any other provision of this section or other law, the Department, upon request by the General Assembly or any duly constituted committee of the General Assembly, shall disclose the total aggregate amount of an income tax deduction or credit taken by all taxpayers, regardless of (i) how few taxpayers took the deduction or credit or (ii) any other circumstances. This section shall not be construed to prohibit a local tax official from disclosing whether a person, firm or corporation is licensed to do business in that locality and divulging, upon written request, the name and address of any person, firm or corporation transacting business under a fictitious name. Additionally, notwithstanding any other provision of law, the commissioner of revenue is authorized to provide, upon written request stating the reason for such request, the Tax Commissioner with information obtained from local tax returns and other information pertaining to the income, sales and property of any person, firm or corporation licensed to do business in that locality.
4728	4724
4729	4725		2. This section shall not prohibit the Department from disclosing whether a person, firm, or corporation is registered as a retail sales and use tax dealer pursuant to Chapter 6 ( 58.1-600 et seq.) or whether a certificate of registration number relating to such tax is valid. Additionally, notwithstanding any other provision of law, the Department is hereby authorized to make available the names and certificate of registration numbers of dealers who are currently registered for retail sales and use tax.
4730	4726
4731	4727		3. This section shall not prohibit the Department from disclosing information to nongovernmental entities with which the Department has entered into a contract to provide services that assist it in the administration of refund processing or other services related to its administration of taxes.
4732	4728
4733	4729		4. This section shall not prohibit the Department from disclosing information to taxpayers regarding whether the taxpayer's employer or another person or entity required to withhold on behalf of such taxpayer submitted withholding records to the Department for a specific taxable year as required pursuant to subdivision C 1 of 58.1-478.
4734	4730
4735	4731		5. This section shall not prohibit the commissioner of the revenue, treasurer, director of finance, or other similar local official who collects or administers taxes for a county, city, or town from disclosing information to nongovernmental entities with which the locality has entered into a contract to provide services that assist it in the administration of refund processing or other non-audit services related to its administration of taxes. The commissioner of the revenue, treasurer, director of finance, or other similar local official who collects or administers taxes for a county, city, or town shall not disclose information to such entity unless he has obtained a written acknowledgement by such entity that the confidentiality and nondisclosure obligations of and penalties set forth in subsection A apply to such entity and that such entity agrees to abide by such obligations.
4736	4732
4737	4733		C. Notwithstanding the provisions of subsection A or B or any other provision of this title, the Tax Commissioner is authorized to (i) divulge tax information to any commissioner of the revenue, director of finance, or other similar collector of county, city, or town taxes who, for the performance of his official duties, requests the same in writing setting forth the reasons for such request; (ii) provide to the Commissioner of the Department of Social Services, upon entering into a written agreement, the amount of income, filing status, number and type of dependents, whether a federal earned income tax credit as authorized in 32 of the Internal Revenue Code and an income tax credit for low-income taxpayers as authorized in 58.1-339.8 have been claimed, and Forms W-2 and 1099 to facilitate the administration of public assistance or social services benefits as defined in 63.2-100 or child support services pursuant to Chapter 19 ( 63.2-1900 et seq.) of Title 63.2, or as may be necessary to facilitate the administration of outreach and enrollment related to the federal earned income tax credit authorized in 32 of the Internal Revenue Code and the income tax credit for low-income taxpayers authorized in 58.1-339.8; (iii) provide to the chief executive officer of the designated student loan guarantor for the Commonwealth of Virginia, upon written request, the names and home addresses of those persons identified by the designated guarantor as having delinquent loans guaranteed by the designated guarantor; (iv) provide current address information upon request to state agencies and institutions for their confidential use in facilitating the collection of accounts receivable, and to the clerk of a circuit or district court for their confidential use in facilitating the collection of fines, penalties, and costs imposed in a proceeding in that court; (v) provide to the Commissioner of the Virginia Employment Commission, after entering into a written agreement, such tax information as may be necessary to facilitate the collection of unemployment taxes and overpaid benefits; (vi) provide to the Virginia Alcoholic Beverage Control Authority, upon entering into a written agreement, such tax information as may be necessary to facilitate the collection of state and local taxes and the administration of the alcoholic beverage control laws; (vii) provide to the Director of the Virginia Lottery such tax information as may be necessary to identify those lottery ticket retailers who owe delinquent taxes; (viii) provide to the Department of the Treasury for its confidential use such tax information as may be necessary to facilitate the location of owners and holders of unclaimed property, as defined in 55.1-2500; (ix) provide to the State Corporation Commission, upon entering into a written agreement, such tax information as may be necessary to facilitate the collection of taxes and fees administered by the Commission; (x) provide to the Executive Director of the Potomac and Rappahannock Transportation Commission for his confidential use such tax information as may be necessary to facilitate the collection of the motor vehicle fuel sales tax; (xi) provide to the Commissioner of the Department of Agriculture and Consumer Services Virginia Gaming Commission such tax information as may be necessary to identify those applicants for registration as a supplier of charitable gaming supplies who have not filed required returns or who owe delinquent taxes; (xii) provide to the Department of Housing and Community Development for its confidential use such tax information as may be necessary to facilitate the administration of the remaining effective provisions of the Enterprise Zone Act ( 59.1-270 et seq.), and the Enterprise Zone Grant Program ( 59.1-538 et seq.); (xiii) provide current name and address information to private collectors entering into a written agreement with the Tax Commissioner, for their confidential use when acting on behalf of the Commonwealth or any of its political subdivisions; however, the Tax Commissioner is not authorized to provide such information to a private collector who has used or disseminated in an unauthorized or prohibited manner any such information previously provided to such collector; (xiv) provide current name and address information as to the identity of the wholesale or retail dealer that affixed a tax stamp to a package of cigarettes to any person who manufactures or sells at retail or wholesale cigarettes and who may bring an action for injunction or other equitable relief for violation of Chapter 10.1, Enforcement of Illegal Sale or Distribution of Cigarettes Act; (xv) provide to the Commissioner of Labor and Industry, upon entering into a written agreement, such tax information as may be necessary to facilitate the collection of unpaid wages under 40.1-29; (xvi) provide to the Director of the Department of Human Resource Management, upon entering into a written agreement, such tax information as may be necessary to identify persons receiving workers' compensation indemnity benefits who have failed to report earnings as required by 65.2-712; (xvii) provide to any commissioner of the revenue, director of finance, or any other officer of any county, city, or town performing any or all of the duties of a commissioner of the revenue and to any dealer registered for the collection of the Communications Sales and Use Tax, a list of the names, business addresses, and dates of registration of all dealers registered for such tax; (xviii) provide to the Executive Director of the Northern Virginia Transportation Commission for his confidential use such tax information as may be necessary to facilitate the collection of the motor vehicle fuel sales tax; (xix) provide to the Commissioner of Agriculture and Consumer Services the name and address of the taxpayer businesses licensed by the Commonwealth that identify themselves as subject to regulation by the Board of Agriculture and Consumer Services pursuant to 3.2-5130; (xx) provide to the developer or the economic development authority of a tourism project authorized by 58.1-3851.1, upon entering into a written agreement, tax information facilitating the repayment of gap financing; (xxi) provide to the Virginia Retirement System and the Department of Human Resource Management, after entering into a written agreement, such tax information as may be necessary to facilitate the enforcement of subdivision C 4 of 9.1-401; (xxii) provide to the Department of Medical Assistance Services and the Department of Social Services, upon entering into a written agreement, the name, address, social security number, email address, dependent information provided pursuant to subdivision B 2 of 58.1-341.1, number and type of personal exemptions, tax-filing status, adjusted gross income, and any additional information voluntarily provided by the taxpayer for disclosure pursuant to subdivisions B 1 and 2 of 58.1-341.1, of an individual, or spouse in the case of a married taxpayer filing jointly, who has voluntarily consented to such disclosure for purposes of identifying persons who would like to newly enroll in medical assistance; (xxiii) provide to the Commissioner of the Department of Motor Vehicles information sufficient to verify that an applicant for a driver privilege card or permit under 46.2-328.3 or an applicant for an identification privilege card under 46.2-345.3 reported income and deductions from Virginia sources, as defined in 58.1-302, or was claimed as a dependent, on an individual income tax return filed with the Commonwealth within the preceding 12 months; and (xxiv) provide to the Virginia Health Benefit Exchange, upon entering into a written agreement, for taxable years starting on January 1, 2023, or as soon thereafter as practicable, as determined by the Department of Taxation and the Virginia Health Benefit Exchange, the name, address, social security number, email address, dependent information provided pursuant to subdivision B 2 of 58.1-341.1, number and type of personal exemptions, tax-filing status, adjusted gross income, and any additional information voluntarily provided by the taxpayer for disclosure pursuant to subdivision B 3 of 58.1-341.1, of an individual, or spouse in the case of a married taxpayer filing jointly, who has voluntarily consented to such disclosure for purposes of identifying persons who do not meet the income eligibility requirements for medical assistance and would like to newly enroll in a qualified health plan. The Tax Commissioner is further authorized to enter into written agreements with duly constituted tax officials of other states and of the United States for the inspection of tax returns, the making of audits, and the exchange of information relating to any tax administered by the Department of Taxation. Any person to whom tax information is divulged pursuant to this section shall be subject to the prohibitions and penalties prescribed herein as though he were a tax official.
4738	4734
4739	4735		D. Notwithstanding the provisions of subsection A or B or any other provision of this title, the commissioner of revenue or other assessing official is authorized to (i) provide, upon written request stating the reason for such request, the chief executive officer of any county or city with information furnished to the commissioner of revenue by the Tax Commissioner relating to the name and address of any dealer located within the county or city who paid sales and use tax, for the purpose of verifying the local sales and use tax revenues payable to the county or city; (ii) provide to the Department of Professional and Occupational Regulation for its confidential use the name, address, and amount of gross receipts of any person, firm or entity subject to a criminal investigation of an unlawful practice of a profession or occupation administered by the Department of Professional and Occupational Regulation, only after the Department of Professional and Occupational Regulation exhausts all other means of obtaining such information; and (iii) provide to any representative of a condominium unit owners' association, property owners' association or real estate cooperative association, or to the owner of property governed by any such association, the names and addresses of parties having a security interest in real property governed by any such association; however, such information shall be released only upon written request stating the reason for such request, which reason shall be limited to proposing or opposing changes to the governing documents of the association, and any information received by any person under this subsection shall be used only for the reason stated in the written request. The treasurer or other local assessing official may require any person requesting information pursuant to clause (iii) of this subsection to pay the reasonable cost of providing such information. Any person to whom tax information is divulged pursuant to this subsection shall be subject to the prohibitions and penalties prescribed herein as though he were a tax official.
4740	4736
4741	4737		Notwithstanding the provisions of subsection A or B or any other provisions of this title, the treasurer or other collector of taxes for a county, city or town is authorized to provide information relating to any motor vehicle, trailer or semitrailer obtained by such treasurer or collector in the course of performing his duties to the commissioner of the revenue or other assessing official for such jurisdiction for use by such commissioner or other official in performing assessments.
4742	4738
4743	4739		This section shall not be construed to prohibit a local tax official from imprinting or displaying on a motor vehicle local license decal the year, make, and model and any other legal identification information about the particular motor vehicle for which that local license decal is assigned.
4744	4740
4745	4741		E. Notwithstanding any other provisions of law, state agencies and any other administrative or regulatory unit of state government shall divulge to the Tax Commissioner or his authorized agent, upon written request, the name, address, and social security number of a taxpayer, necessary for the performance of the Commissioner's official duties regarding the administration and enforcement of laws within the jurisdiction of the Department of Taxation. The receipt of information by the Tax Commissioner or his agent that may be deemed taxpayer information shall not relieve the Commissioner of the obligations under this section.
4746	4742
4747	4743		F. Additionally, it is unlawful for any person to disseminate, publish, or cause to be published any confidential tax document that he knows or has reason to know is a confidential tax document. A confidential tax document is any correspondence, document, or tax return that is prohibited from being divulged by subsection A, B, C, or D and includes any document containing information on the transactions, property, income, or business of any person, firm, or corporation that is required to be filed with any state official by 58.1-512. This prohibition shall not apply if such confidential tax document has been divulged or disseminated pursuant to a provision of law authorizing disclosure. Any person violating the provisions of this subsection is guilty of a Class 1 misdemeanor.
4748	4744
4749	4745		58.1-439. Major business facility job tax credit.
4750	4746
4751	4747		A. For taxable years beginning on and after January 1, 1995, but before July 1, 2025, a taxpayer shall be allowed a credit against the taxes imposed by Articles 2 ( 58.1-320 et seq.), 6 ( 58.1-360 et seq.), and 10 ( 58.1-400 et seq.) of Chapter 3; Chapter 12 ( 58.1-1200 et seq.); Article 1 ( 58.1-2500 et seq.) of Chapter 25; or Article 2 ( 58.1-2620 et seq.) of Chapter 26 as set forth in this section.
4752	4748
4753	4749		B. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
4754	4750
4755	4751		C. A "major business facility" is a company that satisfies the following criteria:
4756	4752
4757	4753		1. Subject to the provisions of subsections K or L, the establishment or expansion of the company shall result in the creation of at least 50 jobs for qualified full-time employees; the first such 50 jobs shall be referred to as the "threshold amount"; and
4758	4754
4759	4755		2. The company is engaged in any business in the Commonwealth, except a retail trade business if such trade is the principal activity of an individual facility in the Commonwealth. Examples of types of major business facilities that are eligible for the credit provided under this section include, but are not limited to, a headquarters, or portion of such a facility, where company employees are physically employed, and where the majority of the company's financial, personnel, legal or planning functions are handled either on a regional or national basis. A company primarily engaged in the Commonwealth in the business of manufacturing or mining; agriculture, forestry or fishing; transportation or communications; or a public utility subject to the corporation income tax shall be deemed to have established or expanded a major business facility in the Commonwealth if it meets the requirements of subdivision 1 during a single taxable year and such facilities are not retail establishments. A major business facility shall also include facilities that perform central management or administrative activities, whether operated as a separate trade or business, or as a separate support operation of another business. Central management or administrative activities include, but are not limited to, general management; accounting; computing; tabulating; purchasing; transportation or shipping; engineering and systems planning; advertising; technical sales and support operations; central administrative offices and warehouses; research, development and testing laboratories; computer-programming, data-processing and other computer-related services facilities; and legal, financial, insurance, and real estate services. The terms used in this subdivision to refer to various types of businesses shall have the same meanings as those terms are commonly defined in the Standard Industrial Classification Manual.
4760	4756
4761	4757		D. For purposes of this section, the "credit year" is the first taxable year following the taxable year in which the major business facility commenced or expanded operations.
4762	4758
4763	4759		E. The Department of Taxation shall make all determinations as to the classification of a major business facility in accordance with the provisions of this section.
4764	4760
4765	4761		F. A "qualified full-time employee" means an employee filling a new, permanent full-time position in a major business facility in the Commonwealth. A "new, permanent full-time position" is a job of an indefinite duration, created by the company as a result of the establishment or expansion of a major business facility in the Commonwealth, requiring a minimum of 35 hours of an employee's time a week for the entire normal year of the company's operations, which "normal year" shall consist of at least 48 weeks, or a position of indefinite duration which requires a minimum of 35 hours of an employee's time a week for the portion of the taxable year in which the employee was initially hired for, or transferred to, the major business facility in the Commonwealth. Seasonal or temporary positions, or a job created when a job function is shifted from an existing location in the Commonwealth to the new major business facility and positions in building and grounds maintenance, security, and other such positions which are ancillary to the principal activities performed by the employees at a major business facility shall not qualify as new, permanent full-time positions.
4766	4762
4767	4763		G. For any major business facility, the amount of credit earned pursuant to this section shall be equal to $1,000 per qualified full-time employee, over the threshold amount, employed during the credit year. The credit shall be allowed ratably, with one-third of the credit amount allowed annually for three years beginning with the credit year. However, for taxable years beginning on or after January 1, 2009, one-half of the credit amount shall be allowed each year for two years. The portion of the $1,000 credit earned with respect to any qualified full-time employee who is employed in the Commonwealth for less than 12 full months during the credit year will be determined by multiplying the credit amount by a fraction, the numerator of which is the number of full months that the qualified full-time employee worked for the major business facility in the Commonwealth during the credit year, and the denominator of which is 12. A separate credit year and a three-year allowance period shall exist for each distinct major business facility of a single taxpayer, except for credits allowed for taxable years beginning on or after January 1, 2009, when a two-year allowance period shall exist for each distinct major business facility of a single taxpayer.
4768	4764
4769	4765		H. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. Any credit not usable for the taxable year the credit was allowed may be, to the extent usable, carried over for the next 10 succeeding taxable years. No credit shall be carried back to a preceding taxable year. In the event that a taxpayer who is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of the Code of Virginia, or has a credit carryover from a preceding taxable year, such taxpayer shall be considered to have first utilized any credit allowed which does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.
4770	4766
4771	4767		I. No credit shall be earned pursuant to this section for any employee (i) for whom a credit under this section was previously earned by a related party as defined by Internal Revenue Code 267(b) or a trade or business under common control as defined by Internal Revenue Code 52(b); (ii) who was previously employed in the same job function in Virginia by a related party as defined by Internal Revenue Code 267(b) or a trade or business under common control as defined by Internal Revenue Code 52(b); (iii) whose job function was previously performed at a different location in Virginia by an employee of the taxpayer, a related party as defined by Internal Revenue Code 267(b), or a trade or business under common control as defined by Internal Revenue Code 52(b); or (iv) whose job function previously qualified for a credit under this section at a different major business facility on behalf of the taxpayer, a related party as defined by Internal Revenue Code 267(b), or a trade or business under common control as defined by Internal Revenue Code 52(b).
4772	4768
4773	4769		J. Subject to the provisions of subsections K or L, recapture of this credit, under the following circumstances, shall be accomplished by increasing the tax in any of the five years succeeding the taxable year in which a credit has been earned pursuant to this section if the number of qualified full-time employees decreases below the average number of qualified full-time employees employed during the credit year. Such tax increase amount shall be determined by (i) recomputing the credit which would have been earned for the original credit year using the decreased number of qualified full-time employees and (ii) subtracting such recomputed credit from the amount of credit previously earned. In the event that the average number of qualifying full-time employees employed at a major business facility falls below the threshold amount in any of the five taxable years succeeding the credit year, all credits earned with respect to such major business facility shall be recaptured. No credit amount will be recaptured more than once pursuant to this subsection. Any recapture pursuant to this section shall reduce credits earned but not yet allowed, and credits allowed but carried forward, before the taxpayer's tax liability may be increased.
4774	4770
4775	4771		K. In the event that a major business facility is located in an economically distressed area or in an enterprise zone as defined in Chapter 49 ( 59.1-538 et seq.) of Title 59.1 during a credit year, the threshold amount required to qualify for a credit pursuant to this section and to avoid full recapture shall be reduced from 50 to 25 for purposes of subdivision C 1 and subsection J. An area shall qualify as economically distressed if it is a city or county with an unemployment rate for the preceding year of at least 0.5 percent higher than the average statewide unemployment rate for such year. The Virginia Economic Development Partnership shall identify and publish a list of all economically distressed areas at least annually.
4776	4772
4777	4773		L. For taxable years beginning on or after January 1, 2004, but before January 1, 2006, in the event that a major business facility is located in a severely economically distressed area, the threshold amount required to qualify for a credit pursuant to this section and to avoid full recapture shall be reduced from 100 to 25 for purposes of subdivision C 1 and subsection J. However, the total amount of credit allowable under this subsection shall not exceed $100,000 in aggregate. An area shall qualify as severely economically distressed if it is a city or county with an unemployment rate for the preceding year of at least twice the average statewide unemployment rate for such year. The Virginia Economic Development Partnership shall identify and publish a list of all severely economically distressed areas at least annually.
4778	4774
4779	4775		M. The Tax Commissioner shall promulgate regulations, in accordance with the Administrative Process Act ( 2.2-4000 et seq.), relating to (i) the computation, carryover, and recapture of the credit provided under this section; (ii) defining criteria for (a) a major business facility, (b) qualifying full-time employees at such facility, and (c) economically distressed areas; and (iii) the computation, carryover, recapture, and redemption of the credit by affiliated companies pursuant to subsection S.
4780	4776
4781	4777		N. The provisions of this section shall apply only in instances where an announcement of intent to establish or expand a major business facility is made on or after January 1, 1994. An announcement of intent to establish or expand a major business facility includes, but is not limited to, a press conference or extensive press coverage, providing information with respect to the impact of the project on the economy of the area where the major business facility is to be established or expanded and the Commonwealth as a whole.
4782	4778
4783	4779		O. The credit allowed pursuant to this section shall be granted to the person who pays taxes for the qualified full-time employees pursuant to Chapter 5 ( 60.2-500 et seq.) of Title 60.2.
4784	4780
4785	4781		P. No person shall claim a credit allowed pursuant to this section and the credit allowed pursuant to 58.1-439.2. Any qualified business firm receiving an enterprise zone job creation grant under 59.1-547 shall not be eligible to receive a major business facility job tax credit pursuant to this section for any job used to qualify for the enterprise zone job creation grant.
4786	4782
4787	4783		Q. No person operating a business in the Commonwealth pursuant to Chapter 29 6 ( 59.1-364 29.5-600 et seq.) of Title 59.1 29.5 shall claim a credit pursuant to this section.
4788	4784
4789	4785		R. Notwithstanding subsection O, a taxpayer may, for the purpose of determining the number of qualified full-time employees at a major business facility, include the employees of a contractor or a subcontractor if such employees are permanently assigned to the taxpayer's major business facility. If the taxpayer includes the employees of a contractor or subcontractor in its total of qualified full-time employees, it shall enter into a contractual agreement with the contractor or subcontractor prohibiting the contractor or subcontractor from also claiming these employees in order to receive a credit given under this section. The taxpayer shall provide evidence satisfactory to the Department of Taxation that it has entered into such a contract.
4790	4786
4791	4787		S. For purposes of satisfying the criteria of subdivision C 1, two or more affiliated companies may elect to aggregate the number of jobs created for qualified full-time employees as the result of the establishment or expansion by the individual companies in order to qualify for the credit allowed pursuant to this section. For purposes of this subsection, "affiliated companies" means two or more companies related to each other such that (i) one company owns at least 80 percent of the voting power of the other or others or (ii) at least 80 percent of the voting power of two or more companies is owned by the same interests.
4792	4788
4793	4789		T. The General Assembly of Virginia finds that modern business infrastructure allows businesses to locate their administrative or manufacturing facilities with minimal regard to the location of markets or the transportation of raw materials and finished goods, and that the economic vitality of the Commonwealth would be enhanced if such facilities were established in Virginia. Accordingly, the provisions of this section targeting the credit to major business facilities and limiting the credit to those companies which establish a major business facility in Virginia are integral to the purpose of the credit earned pursuant to this section and shall not be deemed severable.
4794	4790
4795	4791		U. For taxable years beginning on and after January 1, 2019, and notwithstanding the provisions of 58.1-3 or any other provision of law, the Department of Taxation, in consultation with the Virginia Economic Development Partnership, shall publish the following information by November 1 of each year for the 12-month period ending on the preceding December 31:
4796	4792
4797	4793		1. The location of sites used for major business facilities for which a credit was claimed;
4798	4794
4799	4795		2. The North American Industry Classification System codes used for the major business facilities for which a credit was claimed;
4800	4796
4801	4797		3. The number of qualified full time employees for whom a credit was claimed; and
4802	4798
4803	4799		4. The total cost to the Commonwealth's general fund of the credits claimed.
4804	4800
4805	4801		Such information shall be published by the Department, regardless of how few taxpayers claimed the tax credit, in a manner that prevents the identification of particular taxpayers, reports, returns, or items.
4806	4802
4807	4803		58.1-460. Definitions.
4808	4804
4809	4805		For the purposes of this article:
4810	4806
4811	4807		"Employee" includes an individual, whether a resident or a nonresident of the Commonwealth, who performs or performed any service in the Commonwealth for wages, or a resident of the Commonwealth who performs or performed any service in the service outside the Commonwealth for wages. The word "employee" also includes an officer, employee, or elected official of the United States, the Commonwealth, or any other state or any territory, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing or an officer of a corporation. The term shall not include the beneficial owner of an individual retirement account (IRA) or simplified employee pension plan (SEPP).
4812	4808
4813	4809		"Employer" means the Commonwealth, or any political subdivision thereof, the United States, or any agency or instrumentality of any one or more of the foregoing, or the person, whether a resident or a nonresident of the Commonwealth, for whom an individual performs or performed any service as an employee or from whom a person receives a prize in excess of $5,001 pursuant to the Virginia Lottery Law ( 58.1-4000 29.5-700 et seq.), except that:
4814	4810
4815	4811		1. If the person, governmental unit, or agency thereof, for whom the individual performs or performed the service does not have control of the payment of the wages for such services, the term "employer" (except as used in the definition of "wages" herein) means the person having control of the payment of such wages, and
4816	4812
4817	4813		2. In the case of a person paying wages on behalf of a nonresident person not engaged in trade or business within the Commonwealth or on behalf of any governmental unit or agency thereof not located within the Commonwealth, the term, "employer" (except as used in the definition of "wages" herein) means such person. The term shall not include a financial institution, corporation, partnership or other person or entity with respect to benefits paid as custodian, trustee, or depository for an individual retirement account (IRA) or simplified employee pension plan (SEPP).
4818	4814
4819	4815		"Miscellaneous payroll period" means a payroll period other than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll period.
4820	4816
4821	4817		"Payroll period" means a period for which a payment of wages is ordinarily made to the employee by his employer.
4822	4818
4823	4819		"Wages" means wages as defined under 3401 (a) of the Internal Revenue Code, as well as any other amounts from which federal income tax is withheld under the provisions of 3402 and 3405 of the Internal Revenue Code and also includes all prizes in excess of $5,001 paid by the Virginia Lottery; however, such term shall not include amounts paid pursuant to individual retirement plans and simplified employee pension plans as defined in 7701 (a)(37) and 408 (c) of the Internal Revenue Code and shall not include remuneration paid for acting in or service as a member of the crew of a (i) motion picture feature film, (ii) television series or commercial, or (iii) promotional film filmed totally or partially in the Commonwealth by an individual or corporation which conducts business in the Commonwealth for less than 90 days of the tax year and when such film, series or commercial is processed, edited, and marketed outside the Commonwealth. Every such individual or corporation shall, immediately subsequent to the filming of such portion of the film, series or commercial filmed in the Commonwealth, file with the Commissioner on forms furnished the Department, a list of the names and social security account numbers of each actor or crew member who is a resident of the Commonwealth and is compensated by such individual or corporation.
4824	4820
4825	4821		58.1-3510. Definition of merchants' capital.
4826	4822
4827	4823		A. Merchants' capital is defined as follows: Inventory of stock on hand; daily rental vehicles as defined in 58.1-1735; and all other taxable personal property of any kind whatsoever, except money on hand and on deposit and except tangible personal property not offered for sale as merchandise, which tangible personal property shall be reported and assessed as such.
4828	4824
4829	4825		B. For purposes of this section, a repair and service operation (i) carried on as an integral part of and in conjunction with a business that is primarily mercantile and (ii) the principal sales of such business are subject to the tax imposed by Article 9 ( 58.1-1734 et seq.) of Chapter 17 or to the tax imposed by Chapter 24 ( 58.1-2400 et seq.) of this title shall be deemed a mercantile business, and all capital, as defined herein, including all repair parts, materials and supplies associated with such repair and service operation shall be deemed merchants' capital.
4830	4826
4831	4827		C. For purposes of valuing lottery tickets as part of a dealer's inventory, cost shall include only the compensation payable to a licensed sales agent as provided by rules or regulations adopted by the Board consistent with the provisions of subdivision A 11 of subsection A of 58.1-4007 29.5-707. The value of lottery tickets shall not be based on the cost of the tickets to the merchant.
4832	4828
4833	4829		58.1-3732.1. Limitation on gross receipts; pari-mutuel wagering.
4834	4830
4835	4831		Gross receipts for license tax purposes under Chapter 37 ( 58.1-3700 et seq.) shall not include the license and admission taxes established under 59.1-392 and 59.1-393 29.5-633, 29.5-634, 29.5-635, 29.5-636, and 29.5-638, respectively, nor shall it include pari-mutuel wagering pools as established under Article 1.1 Chapter 2 ( 18.2-340.15 29.5-200 et seq.) of Chapter 8 of Title 18.2 29.5 or 59.1-392 Article 5 ( 29.5-633 et seq.) of Chapter 6 of Title 29.5.
4836	4832
4837	4833		59.1-542.1. Local incentives; motor sports facilities.
4838	4834
4839	4835		A. A locality that is home to a motor sports facility, as defined in 58.1-4030 29.5-400, in the Commonwealth may propose local incentives that address the economic conditions within such locality and will help stimulate real property improvements and new job creation. Such local incentives may include: (i) reduction of permit fees; (ii) reduction of user fees; (iii) reduction of business, professional, and occupational license taxes; or (iv) partial exemption from taxation of substantially rehabilitated real estate pursuant to 58.1-3221. The extent and duration of such incentives shall conform to the requirements of the Constitutions of Virginia and the United States. Local incentives may also include regulatory flexibility, including (a) special zoning districts, (b) permit process reform, (c) exemptions from local ordinances, or (d) other public incentives that are binding on the locality.
4840	4836
4841	4837		B. A locality may establish eligibility criteria for local incentives that differ from the criteria required to qualify for the incentives provided by this chapter.
4842	4838
4843	4839		2. That 2.2-2455 and 2.2-2456, Article 1.1:1 ( 18.2-340.15 through 18.2-340.37) of Chapter 8 of Title 18.2, Chapter 40 ( 58.1-4000 through 58.1-4048) of Title 58.1, Chapter 41 ( 58.1-4100 through 58.1-4141) of Title 58.1, Chapter 29 ( 59.1-364 through 59.1-405) of Title 59.1, and Chapter 51 ( 59.1-556 through 59.1-570) of Title 59.1 of the Code of Virginia are repealed.
4844	4840
4845	4841		3. That there shall be established a Virginia Gaming Oversight Commission (the Oversight Commission), which shall consist of 10 members of the General Assembly. Members shall be appointed as follows: six members of the House of Delegates who are members of the House Committee on Appropriations, the House Committee for Courts of Justice, or the House Committee on General Laws to be appointed by the Speaker of the House of Delegates in accordance with the principles of proportional representation contained in the Rules of the House of Delegates and four members of the Senate who are members of the Senate Committee on Finance and Appropriations, the Senate Committee for Courts of Justice, or the Senate Committee on General Laws and Technology to be appointed by the Senate Committee on Rules. The Oversight Commission shall elect a chairman and vice-chairman from among its membership; however, the chairman and vice-chairman shall not both be members of the House of Delegates, nor shall both the chairman and vice-chairman be members of the Senate. No recommendation of the Oversight Commission shall be adopted if a majority of the House members or a majority of the Senate members appointed to the Oversight Commission (i) vote against the recommendation and (ii) vote for the recommendation to fail notwithstanding the majority vote of the Oversight Commission. The Oversight Commission shall exercise the function of overseeing the implementation of the provisions of this act and shall convene regularly in the exercise of that function. The Oversight Commission shall expire (a) on July 1, 2026, or (b) upon the appointment of all members to the Virginia Gaming Commission Board, established pursuant to 29.5-103 of the Code of Virginia, as created by this act, and the appointment of a Commissioner to the Virginia Gaming Commission pursuant to 29.5-102 of the Code of Virginia, as created by this act, whichever occurs first. The provisions of this enactment shall become effective in due course.
4846	4842
4847	4843		4. That the Virginia Gaming Oversight Commission created pursuant to the third enactment of this act shall report quarterly on its progress to the chairmen of the House Committees on Appropriations and General Laws and the Senate Committees on Finance and Appropriations and General Laws and Technology.
4848	4844
4849	4845		5. That there shall be established a Legislative Transition Executive Committee (the Executive Committee), which shall consist of four members of the Virginia Gaming Oversight Commission, to be appointed as follows: two members from the House of Delegates and two members from the Senate to be appointed by the chairman of the Virginia Gaming Oversight Commission. The Executive Committee shall function as a work group of the Virginia Gaming Oversight Commission and shall meet more frequently than the full membership of the Virginia Gaming Oversight Commission for the purpose of making decisions based on the recommendations of the Virginia Gaming Oversight Commission and providing direction to the Virginia Lottery in its role as the project management organization overseeing the implementation of the provisions of this act.
4850	4846
4851	4847		6. That the Virginia Lottery shall act as the project management organization to oversee and execute the work of the Virginia Gaming Oversight Commission and the Legislative Transition Executive Committee as such bodies exercise their duties and responsibilities pursuant to the third and fifth enactments of this act.
4852	4848
4853	4849		7. That the initial terms of office of those persons appointed to serve as nonlegislative citizen members on the Virginia Gaming Commission Board pursuant to 29.5-103 of the Code of Virginia, as created by this act, shall be staggered as follows: two persons shall be appointed for a term of five years; two persons shall be appointed for a term of four years; three persons shall be appointed for a term of three years; one person shall be appointed for a term of two years; and one person shall be appointed for a term of one year. Thereafter, nonlegislative citizen members of the Virginia Gaming Commission Board shall serve for terms of five years. The provisions of this enactment shall become effective in due course.
4854	4850
4855	4851		8. That this act shall not be construed to affect existing appointments to the Charitable Gaming Board for the terms that have not expired. However, all new appointments to the Charitable Gaming Advisory Board, established pursuant to 29.5-201 of the Code of Virginia, as created by this act, made on or after July 1, 2025, shall be made in accordance with the provisions of this act.
4856	4852
4857	4853		9. That this act shall not be construed to affect existing appointments to the Virginia Lottery Board for the terms that have not expired, with the exception of the member who is a law-enforcement officer and the member who is a certified public accountant authorized to practice in the Commonwealth, both appointed pursuant to Chapters 1197 and 1248 of the Acts of Assembly of 2020. However, all new appointments to the Virginia Lottery Board pursuant to 29.5-704 of the Code of Virginia, as created by this act, made on or after the appointment of the nonlegislative citizen members of the Virginia Gaming Commission Board established pursuant to 29.5-103 of the Code of Virginia, as created by this act, shall be made in accordance with the provisions of this act.
4858	4854
4859	4855		10. That the Chief Operating Officer of the Virginia Gaming Commission (the Commission) shall also serve as the Chief Transition Officer of the Commission to lead and coordinate the efforts between relevant state agencies and the Commission with respect to transitioning the oversight and regulation of charitable gaming, casino gaming, sports betting, fantasy sports, and horse racing from such relevant agencies to the Commission. The duties of the Chief Operations Officer that are related to such transition shall expire upon the successful completion of the transition process.
4860	4856
4861	4857		11. That the regulations of the (i) Department of Agriculture and Consumer Services promulgated pursuant to Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 of Title 18.2 of the Code of Virginia; (ii) Virginia Lottery Board promulgated pursuant to Article 2 ( 58.1-4030 et seq.) of Chapter 40 and Chapter 41 ( 58.1-4100 et seq.) of Title 58.1 of the Code of Virginia; and (iii) Virginia Racing Commission pursuant to Chapter 29 ( 59.1-364 et seq.) of Title 59.1 of the Code of Virginia, as repealed by this act, shall remain in full force and effect until the Virginia Gaming Commission Board promulgates regulations pursuant to this act. Regulations with respect to clause (i) shall be administered by the Department of Agriculture and Consumer Services and regulations with respect to clauses (ii) and (iii) shall be administered by the Virginia Lottery until the Virginia Gaming Commission Board promulgates regulations pursuant to this act. The provisions of this enactment shall become effective in due course.
4862	4858
4863	4859		12. That during the interim period between July 1, 2025, and the formal establishment of the Virginia Gaming Commission (the Commission), established pursuant to 29.5-101 of the Code of Virginia, as created by this act, the Virginia Lottery shall be responsible for conducting all necessary business functions assigned to the Commission pursuant to this act. Formal establishment shall include appointment of the Commissioner of the Commission pursuant to 29.5-102 of the Code of Virginia, as created by this act, and achievement of staffing levels adequate to allow the Commission to independently accomplish such business functions as determined by the Commissioner and the Virginia Gaming Commission Board, established pursuant to 29.5-103 of the Code of Virginia, as created by this act.
4864	4860
4865	4861		13. That in the event that ex officio membership on any board, commission, council, committee, or other body is affected by the provisions of this act, the Governor shall designate an appropriate successor officer, employee, or member of a board or agency established pursuant to the provisions of this act as a replacement.
4866	4862
4867	4863		14. That the Governor may transfer an appropriation or any portion thereof within a state agency established, abolished, or otherwise affected by the provisions of this act, or from one such agency to another, to support the changes in organization or responsibility resulting from or required by the provisions of this act.
4868	4864
4869	4865		15. That any accrued sick leave or annual leave of any employee of the Department of Agriculture and Consumer Services, the Virginia Lottery, or the Virginia Racing Commission who transfers to the Virginia Gaming Commission in accordance with the provisions of this act shall transfer with the employee.
4870	4866
4871	4867		16. That the Virginia Gaming Commission Board (the Board) shall promulgate regulations to implement the provisions of this act by January 1, 2026; however the Board shall present such regulations to the Virginia Gaming Oversight Commission for review prior to adoption. With the exception of 2.2-4031 of the Code of Virginia, neither the provisions of the Administrative Process Act ( 2.2-4000 et seq. of the Code of Virginia) nor the public participation guidelines adopted pursuant thereto shall apply to the initial adoption of any regulations pursuant to this act. Prior to adopting any regulations pursuant to this act, the Board shall publish a notice of opportunity to comment in the Virginia Register of Regulations and post the action on the Virginia Regulatory Town Hall. Such notice of opportunity to comment shall contain (i) a summary of the proposed regulations; (ii) the text of the proposed regulations; and (iii) the name, address, email address, and telephone number of the agency contact person responsible for receiving public comments. Such notice shall be made at least 60 days in advance of the last date prescribed in such notice for the submittal of public comment. The legislative review provisions of subsections A and B of 2.2-4014 of the Code of Virginia shall apply to the promulgation or final adoption process for regulations adopted pursuant to this act. The Board shall consider and keep on file all public comments received for any regulations adopted pursuant to this act. The provisions of this enactment shall become effective in due course.
4872	4868
4873	4869		17. That employees of the Virginia Gaming Commission (the Commission) shall be considered employees of the Commonwealth. Employees of the Commission shall be eligible for membership in the Virginia Retirement System or other retirement plan as authorized by Article 4 ( 51.1-125 et seq.) of Chapter 1 of Title 51.1 of the Code of Virginia and participation in all health and related insurance and other benefits, including premium conversion and flexible benefits, available to state employees as provided by law. Employees of the Commission shall be employed on such terms and conditions as established by the Virginia Gaming Commission Board (the Board). The Board shall develop and adopt policies and procedures that afford its employees grievance rights, ensure that employment decisions are based upon the merit and fitness of applicants, and prohibit discrimination because of race, color, religion, ethnic or national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, sexual orientation, gender identity, or disability. Notwithstanding any other provision of law, the Board shall develop, implement, and administer a paid leave program, which may include annual, personal, and sick leave or any combination thereof. All other leave benefits shall be administered in accordance with Chapter 11 ( 51.1-1100 et seq.) of Title 51.1 of the Code of Virginia, except as otherwise provided in this enactment.
4874	4870
4875	4871		18. That notwithstanding any other provision of law, the Virginia Gaming Commission (the Commission) shall give preference in hiring to employees of the Department of Agriculture and Consumer Services, the Virginia Lottery, and the Virginia Racing Commission (relevant state agencies). The Commission shall issue a written notice to all persons whose employment at such relevant state agencies will be transferred to the Commission. The date upon which such written notice is issued shall be referred to herein as the "Option Date." In order to facilitate an orderly and efficient transition and ensure the continuation of operations during the transition from the relevant state agencies to the Commission, the Commission shall have discretion, subject to the time limitations contained herein, to determine the date upon which any employee's employment with the relevant state agencies will end or be transferred to the Commission. This date shall be stated in the written notice and shall be referred to herein as the "Transition Date." No Transition Date shall occur prior to July 1, 2025, without the mutual agreement of the employee and the Commission. No Transition Date shall be set beyond July 1, 2026. Each person whose employment will be transferred to the Commission may, by written request made within 120 days of the Option Date, elect not to become employed by the Commission. Any employee of the relevant state agencies who (i) is not offered the opportunity to transfer to employment by the Commission or (ii) is not offered a position with the Commission for which the employee is qualified or is offered a position that requires relocation or a reduction in salary shall be eligible for the severance benefits conferred by the provisions of the Workforce Transition Act ( 2.2-3200 et seq. of the Code of Virginia). Any employee who accepts employment with the Commission shall not be considered to be involuntarily separated from state employment and shall not be eligible for the severance benefits conferred by the provisions of the Workforce Transition Act. Any eligibility for such severance benefits shall be contingent on the continued employment through an employee's Transition Date.
4876	4872
4877	4873		Notwithstanding any other provision of law to the contrary, any person whose employment is transferred to the Commission as a result of this act and who is a member of any plan for providing health insurance coverage pursuant to Chapter 28 ( 2.2-2800 et seq.) of Title 2.2 of the Code of Virginia shall continue to be a member of such health insurance plan under the same terms and conditions as if no transfer had occurred.
4878	4874
4879	4875		Notwithstanding any other provision of law to the contrary, any person whose employment is transferred to the Commission as a result of this act and who is a member of the Virginia Retirement System or other retirement plan as authorized by Article 4 ( 51.1-125 et seq.) of Chapter 1 of Title 51.1 of the Code of Virginia shall continue to be a member of the Virginia Retirement System or other such authorized retirement plan under the same terms and conditions as if no transfer had occurred.
4880	4876
4881	4877		Notwithstanding any other provision of law, any person whose employment is transferred to the Commission as a result of this act and who was subjected to a criminal history background check as a condition of employment with any of the relevant state agencies shall not be subject to any provisions of this act regarding a criminal history background check, unless the Commission deems otherwise.
4882	4878
4883	4879		19. That the Virginia Gaming Commission (the Commission) shall conduct a review of all technology systems inherited from the Department of Agriculture and Consumer Services, the Virginia Lottery, and the Virginia Racing Commission for the purpose of increasing efficiency in core functions through the reduction of manual processes and standardizing similar processes, such as licensing, auditing, and case management, across the different types of gaming that are overseen and regulated by the Commission.
4884	4880
4885	4881		20. Pursuant to 30-19.1:4, the estimated amount of the necessary appropriation is $0 for periods of imprisonment in state adult correctional facilities and cannot be determined for periods of commitment to the custody of the Department of Juvenile Justice.