PRINTER'S NO. 143
No. 129 Session of 1985
INTRODUCED BY HALUSKA, PERZEL, VAN HORNE, OLASZ, PRESTON AND
KOSINSKI, JANUARY 30, 1985
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
JANUARY 30, 1985
AN ACT
1 Providing for and regulating dog racing with wagering on the
2 results thereof; creating the State Dog Racing Commission and
3 defining its powers and duties; providing for the
4 establishment and operation of dog racing meetings; imposing
5 taxes; disposing of moneys received by the commission and
6 moneys collected from the taxes; and providing for penalties.
7 TABLE OF CONTENTS
8 Chapter 1. General Provisions
9 Section 101. Short title.
10 Section 102. Definitions.
11 Chapter 2. State Dog Racing Commission
12 Section 201. Establishment of the commission.
13 Section 202. General powers of the commission.
14 Section 203. Incorporation.
15 Section 204. Filing of information concerning stock transfers;
16 necessity for commission's approval.
17 Section 205. License restriction.
18 Section 206. Responsibilities of the Department of Revenue.
19 Section 207. Allocation of racing days.
1 Section 208. State admission taxes.
2 Section 209. Licenses for dog race meetings.
3 Section 210. Shareholders.
4 Section 211. Prohibition of interests by public officers, public
5 employees and party officers in pari-mutuel racing
6 activities.
7 Section 212. Officials at dog race meetings.
8 Section 213. Licenses for commissioners, employees,
9 participants, owners and dogs at race meetings.
10 Section 214. Power of commission to impose fines and
11 penalties.
12 Section 215. Security personnel; powers and duties; penalty.
13 Section 216. Interstate simulcastings of dog races.
14 Section 217. Refunds.
15 Section 218. Place and manner of conducting pari-mutuel
16 wagering.
17 Section 219. Books and records of pari-mutuel wagering.
18 Section 220. Filing of certain agreements with the commission.
19 Section 221. Retention percentages for pari-mutuel pools.
20 Section 222. Distribution of moneys retained from pari-mutuel
21 pools; taxation.
22 Section 223. Pennsylvania Dog Breeding Fund.
23 Section 224. The Pennsylvania Dog Breeding Fund Advisory
24 Committee.
25 Section 225. Hearing of refusal or revocation of license.
26 Section 226. Approval of the racing facility.
27 Section 227. Prohibition of wagering by certain officials,
28 employees and minors.
29 Section 228. Dog racing veterinarians and State steward.
30 Section 229. Free passes, cards or badges.
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1 Section 230. Political subdivision agricultural fairs and dog
2 race meetings not licensed to conduct or regulate
3 or tax pari-mutuel wagering.
4 Chapter 3. Medication Rules and Enforcement Provisions
5 Section 301. Mandatory requirements for medication rules.
6 Section 302. Establishment of the Pennsylvania Race Dog
7 Testing Laboratory.
8 Chapter 4. Miscellaneous Provisions
9 Section 401. Repeals.
10 Section 402. Severability.
11 Section 403. Effective date.
12 CHAPTER 1
13 GENERAL PROVISIONS
14 Section 101. Short title.
15 This act shall be known and may be cited as the Dog Racing
16 Act.
17 Section 102. Definitions.
18 The following words and phrases when used in this act shall
19 have the meanings given to them in this section unless the
20 context clearly indicates otherwise:
21 "Commission." The State Dog Racing Commission.
22 "Commissioners." The persons appointed by the Governor and
23 confirmed by the Senate who serve on the commission and who
24 administer the applicable provisions of this act.
25 "Licensed corporations." The corporations that have obtained
26 a license from the commission to conduct dog race meetings with
27 pari-mutuel wagering.
28 CHAPTER 2
29 STATE DOG RACING COMMISSION
30 Section 201. Establishment of the commission.
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1 (a) Creation.--The commission is hereby established as a
2 departmental administrative commission within the Department of
3 Agriculture. The commission shall have general jurisdiction over
4 all pari-mutuel dog racing activities in the Commonwealth and
5 the corporations engaged therein. The commission shall consist
6 of three members who shall be appointed by the Governor, by and
7 with the advice and consent of the Senate. Each commissioner
8 shall hold office for a term of three years and until a
9 successor is qualified.
10 (b) Commission generally.--The commissioners shall be
11 reimbursed for documented expenses incurred in the performance
12 of their official duties. The commissioners shall be paid $150
13 per diem for performing their duties as directed by the
14 Secretary of Agriculture. One of the commissioners shall be
15 appointed as chairperson by the Governor, and shall serve in
16 that position at his pleasure. The Secretary of Agriculture or
17 his designee shall be a nonvoting ex officio member of the
18 commission. The commission shall meet at least once a month and
19 at other times as the Secretary of Agriculture or the commission
20 chairperson deems necessary. Adequate public notice of the time
21 and place of the meetings shall be given. A commissioner who
22 fails to attend three consecutive meetings shall be subject to
23 removal. A commissioner shall be excused from meetings due to
24 illness or the death of an immediate family member. All
25 commissioners shall be licensed under the provisions of section
26 213.
27 (c) Commission employees.--The commission shall engage an
28 executive secretary, deputies, secretaries, officers and
29 representatives as it may deem necessary, who shall serve during
30 its pleasure. The commission shall also engage other employees
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1 as it sees fit and whose duties shall be prescribed by the
2 commission and whose compensation shall be fixed by the
3 commission within the appropriations available. Legal counsel
4 for the commission shall be appointed in accordance with the act
5 of October 15, 1980 (P.L.950, No.164), known as the Commonwealth
6 Attorneys Act. The commission shall be subject to the provisions
7 of the act of April 9, 1929 (P.L.177, No.175), known as The
8 Administrative Code of 1929, as to classification and
9 compensation of its employees.
10 (d) Duties of executive secretary.--It shall be the duty of
11 the executive secretary to keep a full and faithful record of
12 the proceedings of the commission,preserve at the general office
13 of the commission all books, maps, documents and papers
14 entrusted to the executive secretary's care, prepare for service
15 the papers and notices as may be required by the commission and
16 perform other duties as the commission may prescribe. It shall
17 be the duty of the executive secretary to keep, at the office of
18 the commission, a docket setting forth the names of all
19 stockholders in all corporations licensed under this act, the
20 number of shares held by each stockholder and the date on which
21 each shareholder acquired stock in the licensed corporation. The
22 docket shall be open for public inspection.
23 (e) Commission hearings.--The commission or its designated
24 officers, employees or agents shall have the power to administer
25 oaths and examine witnesses and may issue subpoenas to compel
26 attendance of witnesses and the production of all relevant and
27 material reports, books, papers, documents, correspondence and
28 other evidence. The commission shall, annually, make a full
29 report to the Secretary of Agriculture of its proceedings for
30 the preceding calendar year and suggestions and recommendations
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1 as may be deemed appropriate. The commission shall exercise its
2 powers and duties in accordance with the provisions of The
3 Administrative Code of 1929.
4 Section 202. General powers of the commission.
5 (a) General rule.--The commission shall have the power to
6 supervise all dog race meetings at which pari-mutuel wagering is
7 conducted. The commission may adopt rules and regulations to
8 effect the purposes and provisions of this act.
9 (b) Additional commission powers.--Without limiting the
10 generality of the foregoing and in addition to its other powers:
11 (1) The commission shall have power to fix a minimum
12 charge for admission to dog race meetings at which pari-
13 mutuel wagering is conducted, but the minimum charge shall
14 not be less than 50¢ for general admission, exclusive of
15 taxes. The commission shall have power to fix the charge for
16 admission of soldiers, sailors and marines, in uniform, at
17 one-half of the amount fixed for general admission, whether
18 or not the one-half of the amount fixed is less than the
19 minimum prescribed therein.
20 (2) The commission shall at all times have in effect
21 rules and regulations as required under Chapter 3 regarding
22 medication rules and enforcement provisions.
23 (3) The rules of the commission shall also provide that
24 all winning pari-mutuel tickets must be presented for payment
25 before April 1 of the year following the year of their
26 purchase and failure to present the ticket within the
27 prescribed period of time shall constitute a waiver of the
28 right to participate in the award. After April 1 of the year
29 following, all licensed corporations will forward to the
30 State Treasurer through the Department of Revenue for credit
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1 to the dog racing funds all funds so held for the uncashed
2 tickets. Where it is shown to the satisfaction of the
3 commission and the Department of Revenue, through
4 substantiated and recorded data, that the reason for the
5 pari-mutuel ticket or tickets being outstanding and unclaimed
6 is loss, misplacement or theft within the confines and
7 control of the pari-mutuel department of any licensed
8 corporation and it is shown to the satisfaction of the
9 commission and the Department of Revenue that the pari-mutuel
10 ticket or tickets in question have been cashed by the pari-
11 mutuel department, the Department of Revenue, with the
12 approval of the appropriate commission, may adjust and credit
13 the licensed corporation's outstanding ticket account
14 accordingly on March 31 of the year following the year of
15 purchase or after a complete audit of the outstanding tickets
16 accounts have been performed. The licensed corporation shall
17 reimburse any employee who has been held personally
18 accountable and paid for the lost, misplaced or stolen
19 tickets.
20 (4) The commission may adopt a general promotion program
21 to assist the licensed corporations in increasing their
22 attendance and average daily handle. Any expenditures for a
23 promotional program shall be authorized and approved in the
24 same manner as other operational costs of the commission.
25 (5) In the event that a state bordering Pennsylvania
26 enacts a wagering tax scheme that may place Pennsylvania dog
27 race meetings at a competitive disadvantage in the purses
28 that can be offered for dog races, a licensed corporation may
29 petition the commission for an emergency financial grant to
30 augment its purse structure. If the commission finds that the
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1 effect of the enacted wagering tax scheme of a bordering
2 state is to place Pennsylvania dog race meetings at a
3 competitive disadvantage in purse structure, the commission
4 shall make an emergency financial grant to the petitioning
5 licensed corporation for augmentation to its purse structure
6 out of moneys that the commission has budgeted for this
7 purpose: Provided, however, That the Secretary of Agriculture
8 and the Secretary of the Budget have also agreed to the
9 grant.
10 Section 203. Incorporation.
11 (a) General rule.--Any number of persons, not less than
12 five, may incorporate for the purpose of conducting dog race
13 meetings at which pari-mutuel wagering will be conducted, with
14 all the general powers of corporations created under the laws of
15 this Commonwealth, by making, signing, acknowledging and filing
16 with the Department of State a certificate which shall contain:
17 (1) The name of the proposed corporation.
18 (2) The objects for which it is to be formed and the
19 location at which it is proposed to conduct its business.
20 (3) The amount and description of the capital stock.
21 (4) The location of its principal business office.
22 (5) Its duration, which may be forever.
23 (6) The number of its directors, not less than five nor
24 more than 13.
25 (7) The names and post office addresses of the directors
26 for the first year.
27 (8) The post office addresses of the subscribers and a
28 statement of the number of shares of stock which each agrees
29 to take in the corporation.
30 (b) Fees and expenses.--Each such certificate shall be
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1 accompanied by the fees, bonus and taxes required by law in the
2 case of corporations organized under the act of May 5, 1933
3 (P.L.364, No.106), known as the Business Corporation Law.
4 (c) Commission license.--No corporation organized under this
5 act shall have the right to conduct any dog race meeting except
6 on obtaining a license from the commission and at the location
7 or locations designated in its license or any amendment thereto
8 or as approved at any time by the commission as the place or
9 places at which it was proposed to conduct its business. This
10 restriction shall not apply to any corporation whose racing
11 plant or usefulness, in the discretion of the commission shall,
12 for any reason beyond the control of the corporation, be totally
13 destroyed or so substantially interfered with as to render same
14 unfit for continued operation. Pending the rebuilding or
15 restoration of its usefulness, or the making of the required
16 repairs to the plant or the part destroyed or damaged, the
17 commission may license such corporation to conduct its dog race
18 meetings at any other suitable location.
19 Section 204. Filing of information concerning stock transfers;
20 necessity for commission's approval.
21 (a) General rule.--Whenever a transfer of stock of any
22 licensed corporation or of any corporation which leases to a
23 licensed corporation the track facility at which it conducts
24 pari-mutuel dog races or which owns 25% or more of the stock of
25 the licensed corporation shall be made, there shall be filed,
26 simultaneously, with the corporation which issued such stock,
27 the following:
28 (1) In duplicate, an affidavit executed by the
29 transferee stating that he is to be the sole beneficial owner
30 thereof, and whether or not he:
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1 (i) Has been convicted of a crime involving moral
2 turpitude.
3 (ii) Has been engaged in bookmaking or other forms
4 of illegal gambling.
5 (iii) Has been found guilty of any fraud or
6 misrepresentation in connection with racing or breeding.
7 (iv) Has been guilty of any violation or attempt to
8 violate any law, rule or regulation of any racing
9 jurisdiction for which suspension from racing might be
10 imposed in such jurisdiction.
11 (v) Has violated any rule, regulation or order of
12 the commission.
13 If the transferee is not, or is not to be, the sole
14 beneficial owner, there shall be annexed to the affidavit of
15 the transferee, and expressly stated in such affidavit, a
16 true and complete copy of all terms of the agreement pursuant
17 to which the stock is to be held by the transferee, including
18 a detailed statement of the interest of each person who is to
19 have any interest therein.
20 (2) In duplicate, an affidavit executed by each person
21 for whom the stock, or any interest therein, is to be held by
22 the transferee, setting forth whether or not the affiant:
23 (i) Has been convicted of a crime involving moral
24 turpitude.
25 (ii) Has engaged in bookmaking or other forms of
26 illegal gambling.
27 (iii) Has been found guilty of any fraud or
28 misrepresentation in connection with racing or breeding.
29 (iv) Has been guilty of any violation or attempt to
30 violate any law, rule or regulation of any racing
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1 jurisdiction for which suspension of racing might be
2 imposed in such jurisdiction.
3 (v) Has violated any rule, regulation or order of
4 the commission.
5 To each of the affidavits shall be annexed and expressly
6 stated in such affidavit a true and complete copy of all the
7 terms of the agreement pursuant to which stock is to be held
8 by the transferee, including a detailed statement of the
9 interest of each person who is to have any interest therein.
10 The corporation shall file with the commission one of each
11 duplicate affidavits.
12 (b) Change in status.--If, after the filing of any affidavit
13 required to be filed, there shall be any change in the status of
14 any affiant with respect to any of the matters set forth in
15 subsection (a)(1), the affiant shall file with the corporation
16 with which his affidavit was so filed a new affidavit, executed
17 by him in duplicate, setting forth the change of status and the
18 corporation shall file one of these affidavits with the
19 appropriate commission.
20 (c) Change in stock amount, nature or interest.--Whenever
21 any change shall be made in the amount, nature or of the
22 interest of any person having an interest in stock of any
23 corporation, or any new interest shall be created therein,
24 without a transfer as provided, the record owner of the stock,
25 and each person whose interest has been attempted to be changed
26 or created, shall file with the corporation which issued the
27 stock, in duplicate, affidavits but need not include the matter
28 referred to in subsection (a), unless then required pursuant to
29 subsection (b), and one copy thereof shall be filed by the
30 corporation with the appropriate commission.
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1 (d) Commission approval.--If the commission determines that
2 it is inconsistent with the public interest, convenience or
3 necessity, or with the best interest of racing generally, that
4 any person continue to be a stockholder of record, or the
5 beneficial owner of any interest in stock standing in the name
6 of another in any licensed corporation or of any corporation
7 which leases to such licensed corporation the track at which it
8 conducts pari-mutuel dog racing or which owned 25% or more of
9 the stock of the licensee, the commission shall have full power
10 and authority to order each stockholder or beneficial owner to
11 dispose of his stock or interest within a period of time to be
12 specified by the commission, which period the commission shall
13 have full power to extend.
14 (e) Hearing notice.--If the commission shall make any order
15 or direction as provided in subsection (d), the person aggrieved
16 shall be given notice of the time and place of a hearing before
17 the commission, at which time the commission will hear the
18 person in reference thereto.
19 Section 205. License restriction.
20 Notwithstanding any other provision of the law, the
21 commission shall not issue a license pursuant to section 209 to
22 any applicant if the place where the dog races are to be held is
23 within a radius of 40 miles of the place where such races have
24 already been licensed pursuant to section 209.
25 Section 206. Responsibilities of the Department of Revenue.
26 The Department of Revenue is charged with the financial
27 administration of pari-mutuel wagering under this act, as
28 supplemented by the rules and regulations of the commission. The
29 Department of Revenue shall have authority to prescribe the
30 forms and the system of accounting to be employed and, through
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1 its representatives, shall at all times have power of access to,
2 and examination of, any equipment relating to such wagering.
3 Section 207. Allocation of racing days.
4 (a) General rule.--Up to 125, but no less than 25, racing
5 days shall be allocated to each licensed corporation conducting
6 dog race meetings in any calendar year, except, that upon
7 request, the commission may grant up to an additional 25 racing
8 days over the 125 days to a licensed corporation in each
9 calendar year, if racing meet schedules can accommodate these
10 extra days. Whenever two or more corporations licensed to
11 conduct racing at the same facility apply to the commission for
12 an allocation of racing days at the same facility, the
13 commission shall allocate the racing days in the following
14 manner:
15 (1) If there is an agreement between the licensed
16 corporations as to the allocation of racing days, then as
17 provided for therein.
18 (2) If there is no agreement between the licensed
19 corporations as to the allocation of racing days, then
20 equally between them.
21 (3) Whenever one or more licensed corporations that have
22 an ownership interest in the facility at which the racing
23 days are to be conducted apply to the commission for an
24 allocation of racing days, the commission shall allocate an
25 equal number of racing days to each licensed corporation or
26 to each licensed corporation based upon an agreement between
27 the licensed corporations as to the allocation of racing
28 days. For the purposes of this paragraph, an ownership
29 interest shall mean that a licensed corporation directly or
30 through a parent or subsidiary has at least 35% equity
19850H0129B0143 - 13 -
1 interest in the track facility at which it conducts dog race
2 meetings or is the primary tenant at such facility. For
3 purposes of this paragraph, a primary tenant shall be that
4 licensed corporation, if any, which is a tenant conducting
5 dog race meetings at a track facility at which no licensed
6 corporation conducting dog race meetings had directly, or
7 through a parent or subsidiary, at least a 35% equity
8 interest in such facility and, if there is more than one such
9 tenant at any such facility during the year prior to the year
10 for which dates are requested, then among or between such
11 tenants the primary tenant, if any, shall be designated by
12 agreement among or between those licensed corporations which
13 propose to conduct dog race meetings at the said track
14 facility during the year for which dates are requested.
15 (b) Information to Department of Revenue.--The commission
16 shall certify to the Secretary of the Department of Revenue,
17 within 20 days after the allocation of racing days to licensed
18 corporations, the following information:
19 (1) The names and addresses of the corporations.
20 (2) The names and addresses of the presidents and
21 general managers of the corporations.
22 (3) The names and locations of the facilities where the
23 racing days are to be conducted.
24 (4) The number of racing days allocated to each
25 corporation.
26 (5) A numbered list of each racing day assigned to each
27 calendar day of the year for the purposes of taxation.
28 (c) Canceled racing days.--If a racing day is canceled by a
29 licensed corporation for reasons beyond its control, the
30 appropriate commission shall grant the licensed corporation the
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1 right to conduct that racing day in the same or the next ensuing
2 calendar year, if schedules permit. The racing day, for purposes
3 of taxation under section 222, shall be at the lowest tax rate
4 at which the licensed corporation conducted a racing day during
5 that year.
6 Section 208. State admission taxes.
7 (a) Collection of taxes.--Every corporation holding a dog
8 race meeting shall collect, in addition to the admission price
9 of tickets sold or otherwise disposed of, for each such meeting
10 held by the corporation, a tax equivalent to 5% of the admission
11 price. In case of failure to collect the tax, the tax shall be
12 imposed upon the corporation holding the race meeting. The tax
13 shall be paid to the Department of Revenue within ten days after
14 the close of each race meeting. The amounts collected shall be
15 paid into the State Treasury to the credit of the State Dog
16 Racing Fund. Before any corporation liable to pay the tax shall
17 hold any race meeting or exercise any of the powers conferred by
18 this act, the corporation shall pay all taxes due and file a
19 statement with the Department of Revenue containing the name of
20 the place and stating the time when the races are to be held.
21 Nothing in this section shall apply to a race meeting conducted
22 by any State, county or other agricultural association.
23 (b) Inspection for taxes due.--The Department of Revenue
24 shall have the power to examine the books and records of the
25 corporation conducting any dog race meeting and may hear
26 testimony and take proofs and material for its information, or
27 from any other data which shall be satisfactory to it. The
28 Department of Revenue may order and state an account for the tax
29 due the State, together with the expense of such examination. A
30 penalty of 5% and interest at the rate of 1% per month from the
19850H0129B0143 - 15 -
1 due date to the date of payment of the tax shall be payable in
2 case any tax imposed by this section is not paid when due.
3 Section 209. Licenses for dog race meetings.
4 (a) General rule.--Any corporation desiring to conduct dog
5 race meetings at which pari-mutuel wagering shall be permitted
6 may apply to the commission for a license. If, in the judgment
7 of the commission, the public interest, convenience or necessity
8 will be served and a proper case for the issuance of the license
9 is shown, the commission may issue the license. The license
10 shall remain in effect so long as the licensed corporation
11 complies with all conditions, rules and regulations and
12 provisions of this act. The commission may revoke or suspend the
13 license of any corporation if it finds by a preponderance of the
14 evidence that the corporation, its officers, employees or
15 agents, has not complied with the conditions, rules, regulations
16 and provisions of this act and that it would be in the public
17 interest, convenience or necessity to revoke or suspend the
18 license.
19 (b) Conditions for issuance of license.--Every license shall
20 be issued upon condition that:
21 (1) Every dog race meeting at which pari-mutuel wagering
22 is conducted shall be subject to the supervision of and to
23 the reasonable rules and regulations prescribed by the
24 commission.
25 (2) Pari-mutuel wagering conducted shall also be subject
26 to the supervision of and to the reasonable regulations
27 prescribed by the Department of Revenue. Any license may also
28 be issued upon any other condition that the commission shall
29 determine to be necessary or desirable to insure that the
30 public interest, convenience or necessity is served.
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1 (3) The corporation can prove by a preponderance of the
2 evidence that it has obtained the use of a facility to
3 conduct dog race meetings. The proof may be demonstrated by
4 documentation of an ownership interest in the facility or by
5 a written lease for use of the facility. For purposes of this
6 paragraph, an ownership interest shall mean that a licensed
7 corporation, directly or through a parent or subsidiary, has
8 at least a 35% equity interest in the track facility at which
9 it conducts dog race meetings or is the primary tenant at
10 such facility. For purposes of this paragraph, a primary
11 tenant shall be that licensed corporation, if any, which is a
12 tenant conducting dog race meetings at a track facility at
13 which no licensed corporation conducting dog race meetings
14 had, directly or through a parent or subsidiary, at least a
15 35% equity interest in such facility, and if there is more
16 than one such tenant at any such facility during the year
17 prior to the year for which dates are requested, then among
18 or between such tenants the primary tenant, if any, shall be
19 designated by agreement among or between those licensed
20 corporations which propose to conduct dog race meetings at
21 the said track facility during the year for which dates are
22 requested.
23 (c) Applications.--Applications for licenses shall be in the
24 form prescribed by the commission and shall contain information,
25 material or evidence as the commission may require.
26 (d) Considerations for application approval.--In considering
27 an application for a license to a corporation, the commission
28 may give consideration to the number of licenses already
29 granted. No license shall be granted to any track located within
30 ten miles of a State, county or other political subdivision fair
19850H0129B0143 - 17 -
1 conducting dog racing unless the association, corporation,
2 society, political subdivision or State agency conducting the
3 fair shall affirmatively waive objection to the issuance of the
4 license for dates within the period.
5 (e) Disapproval, revocation or suspension of license.--The
6 commission may refuse to grant, may revoke or may suspend a
7 license to a corporation, if it shall determine that:
8 (1) Any officer, director, member or stockholder of the
9 corporation applying for a license or of any corporation
10 which owns stock in or shares in the profits, or participates
11 in the management of the affairs of the applicant, or which
12 leases to the applicant the track where it shall operate:
13 (i) Has been convicted of a crime involving moral
14 turpitude.
15 (ii) Has engaged in bookmaking or other forms of
16 illegal gambling.
17 (iii) Has been found guilty of any fraud or
18 misrepresentation in connection with racing or breeding.
19 (iv) Has been guilty of any violation or attempt to
20 violate any law, rule or regulation of any racing
21 jurisdiction for which suspension from racing might be
22 imposed in such jurisdiction.
23 (v) Has violated any rule, regulation or order of
24 the commission.
25 (2) The experience, character or fitness of any officer,
26 director or stockholder of any of the corporations is such
27 that the participation of the person in dog racing or related
28 activities would be inconsistent with the public interest,
29 convenience or necessity or with the best interests of
30 racing. If the commission determines that the interest of any
19850H0129B0143 - 18 -
1 stockholder referred to in this paragraph or in paragraph (1)
2 is insufficient to affect adversely the conduct of pari-
3 mutuel dog racing by the corporation in accordance with the
4 provisions of this act, the commission may disregard the
5 interest in determining whether or not to grant a license to
6 the corporation.
7 (3) The applicant is not the owner or the lessee of the
8 track at which it will conduct pari-mutuel dog racing under
9 the license applied for, or that any person, firm,
10 association or corporation other than the applicant shares,
11 or will share, in the profits of the applicant, other than by
12 dividends as a stockholder, or participates, or will
13 participate in the management of the affairs of the
14 applicant.
15 (4) The corporation does not have the use of a facility
16 to conduct dog race meetings. Such use must be proved by a
17 preponderance of the evidence. The proof may be demonstrated
18 by documentation of an ownership interest in the facility or
19 by a written lease for use of the facility.
20 (5) If the commission finds that a licensed corporation
21 does not have proof of a written lease of a facility to
22 conduct dog race meetings, it may suspend its license for a
23 period of up to two years. The commission may then revoke the
24 license if the licensed corporation has failed to contract
25 for a facility at which to conduct dog race meetings within a
26 reasonable time.
27 (6) The charter or certificate of incorporation of any
28 corporation which fails to contain a provision requiring any
29 stockholder, upon written demand of the corporation, to sell
30 his stock to the corporation at a price to be fixed by the
19850H0129B0143 - 19 -
1 commission, provided the demand be made pursuant to written
2 direction of the commission and from the date of the making
3 of the demand prohibiting the transfer of the certificate of
4 stock except to the corporation.
5 (7) The corporation, having been a licensee, has failed,
6 in the opinion of the commission, to properly maintain its
7 track and plant in good condition or has failed to make
8 adequate provision for rehabilitation and capital
9 improvements to its track and plant.
10 (g) Temporary license.--Pending final determination of any
11 question under this section, the commission may issue a
12 temporary license upon such terms and conditions as it sees fit
13 to effectuate the provisions of this act.
14 (h) Legend on certificate of stock.--The commission shall
15 have power to direct that every certificate of stock of a
16 licensed corporation shall bear a legend, plainly and
17 prominently imprinted upon the face of the certificate, reading:
18 "This certificate of stock is transferable only subject to the
19 provisions of the Dog Racing Act."
20 (i) Definitions.--As used in this section, the term "racing
21 week" shall include Sunday at the discretion of the licensed
22 corporation.
23 Section 210. Shareholders.
24 (a) List of shareholders.--Each licensed corporation shall
25 provide the commission with a complete list of all its
26 shareholders, indicating the number of shares by each
27 shareholder.
28 (b) Transfer of stock.--It shall be the duty of each
29 licensed corporation, within ten days after any transfer of
30 stock in such licensee, to notify the commission of the
19850H0129B0143 - 20 -
1 transfer.
2 (c) Stock ownership; trusts.--Each certificate of stock
3 issued by a licensed corporation shall have noted on the face
4 thereof that the person whose name is indicated as the owner of
5 the shares of stock by the certificate is the sole and absolute
6 owner and that he is not holding the shares of stock or any
7 portion of the shares of stock represented by the certificate in
8 trust for any person, partnership, firm or corporation who or
9 which is prohibited from owning the shares of stock. If any of
10 the shares of stock represented by a certificate of stock are
11 held subject to the terms of either an inter vivos or
12 testamentary trust for the benefit of any person who could
13 lawfully own such stock in his own name, the fact shall be noted
14 on the face of the certificate and a copy of the instrument
15 which created the trust shall be filed with the appropriate
16 commission.
17 (d) Forfeiture of stock held in trusts.--No property rights
18 shall exist in any shares of stock of any licensed corporation
19 which are held in trust contrary to the provisions of this
20 section and the same shall be forfeited to the Commonwealth
21 after reasonable notice and upon hearing and proof thereof in
22 any suit instituted by the Attorney General. Upon it being
23 established that the stock is subject to forfeiture by legal
24 adjudication, the commission shall sell the forfeited stock at
25 public sale, upon proper notice, to the highest bidder. The
26 proceeds from the sale shall be deposited in the State Dog
27 Racing Fund.
28 (e) Definitions.--As used in this section, the term
29 "licensed corporation" shall include any licensed corporation as
30 defined in section 102 and also any firm, association or
19850H0129B0143 - 21 -
1 corporation which owns or leases to any licensed association or
2 corporation a race track at which pari-mutuel racing is
3 conducted, or any firm, association or corporation which
4 participates in the management of any such licensed corporation.
5 Section 211. Prohibition of interest by public officers, public
6 employees and party officers in pari-mutuel
7 racing activities.
8 (a) General rule.--No public officer, public employee or
9 party officer shall:
10 (1) Hold any license to conduct a pari-mutuel meeting
11 from the commission.
12 (2) Own or hold, directly or indirectly, any proprietary
13 interest, stock or obligation of any firm, association or
14 corporation:
15 (i) Which is licensed by the commission to conduct
16 pari-mutuel racing.
17 (ii) Which is licensed to conduct its occupation,
18 trade or business at race tracks at which pari-mutuel
19 race meetings are conducted.
20 (iii) Which owns or leases to any licensed
21 association or corporation a race track at which pari-
22 mutuel racing is conducted.
23 (iv) Which participates in the management of any
24 licensed corporation conducting pari-mutuel racing.
25 (3) Hold any office or employment with any firm,
26 association or corporation specified in paragraph (2).
27 (4) Sell or be a member of a firm or own 10% or more of
28 the stock of any corporation which sells any goods or
29 services to any firm, association or corporation specified in
30 paragraph (2).
19850H0129B0143 - 22 -
1 The provisions of paragraph (3) shall not apply to a public
2 employee other than a police officer or paid employee of a
3 police department, sheriff's office, district attorney's office
4 or other law enforcement agency so long as such employment of
5 employees of a political subdivision may be prohibited by
6 ordinance, resolution or local law.
7 (b) Penalties for violation.--The commission or the
8 appropriate authority having the power of removal shall:
9 (1) Refuse to grant, remove or suspend a license of any
10 firm, association or corporation which aids, knowingly
11 permits or conspires to permit any public officer, public
12 employee or party officer to acquire or retain any interest
13 prohibited by this section.
14 (2) Remove from public office, public employment or
15 party office any individual that knowingly and willfully
16 violates this section.
17 (c) Application.--The provisions of this section shall allow
18 any person other than members, employees or appointees of the
19 commission to own and to be licensed to race a dog at any
20 licensed race track.
21 (d) Definitions.--As used in this section the following
22 words and phrases shall have the meanings given to them in this
23 subsection:
24 "Party officer." The following members or officers of any
25 political party:
26 (1) A member of a national committee.
27 (2) A chairman, vice chairman, secretary, treasurer or
28 counsel of a State committee or member of the executive
29 committee of a State committee.
30 (3) A county chairman, vice chairman, counsel, secretary
19850H0129B0143 - 23 -
1 or treasurer of a county committee.
2 (4) A city chairman, vice chairman, counsel, secretary
3 or treasurer of a city committee.
4 "Public employee." Every person employed by the Commonwealth
5 or any political subdivision thereof.
6 "Public officer." Every person elected to any public office
7 of the Commonwealth or any political subdivision thereof.
8 Section 212. Officials at dog race meetings.
9 At all dog race meetings licensed by the commission,
10 qualified stewards, judges and starters shall be approved by the
11 commission. These officials shall enforce the rules and
12 regulations of the commission and shall render written reports
13 of the activities and conduct of such race meetings to the
14 commission. The compensation of these judges and starters shall
15 be paid by the corporation conducting the race meeting.
16 Section 213. Licenses for commissioners, employees,
17 participants, owners and dogs at race meetings.
18 (a) General rule.--The commission shall license trainers,
19 breeders, kennel masters, persons participating in dog race
20 meetings, dog owners and all other persons and vendors
21 exercising their occupation or employed at dog race meetings.
22 The commission shall fix the license fee to be paid by persons
23 or corporations so licensed: Provided, however, That such
24 occupational license fees shall not exceed $100. All fees shall
25 be paid to the commission and by them paid into the State
26 Treasury through the Department of Revenue and credited to the
27 State Dog Racing Fund. The application shall be in the form and
28 contain the information as the commission may require. All
29 licenses may be issued for more than a one-year term. The
30 commission may also stagger the termination dates and renewal
19850H0129B0143 - 24 -
1 dates of the licenses in order to process and issue the licenses
2 in an orderly manner. The commission shall fix the manner by
3 which licenses are processed and issued by rule or regulation.
4 (b) Licenses for commissioners.--All commissioners and all
5 employees, agents and representatives of the commission shall be
6 licensed under this act. There shall be no fee for this license.
7 The commission shall fix by rule or regulation the manner in
8 which these licenses under this subsection shall be processed
9 and issued.
10 (c) Character and fitness of applicants.--If the commission
11 finds that the experience, character and general fitness of the
12 applicant are such that the participation of the person in dog
13 race meetings is consistent with the public interest,
14 convenience and necessity, and with the best interests of racing
15 generally in conformity with the purposes of this act, it may
16 grant a license.
17 (d) Commission refusal of license.--The commission may
18 refuse to issue a license under this section, if it shall find
19 that the applicant:
20 (1) Has been convicted of a crime involving moral
21 turpitude.
22 (2) Has engaged in bookmaking or other form of illegal
23 gambling.
24 (3) Has been found guilty of any fraud or
25 misrepresentation in connection with racing or breeding.
26 (4) Has been found guilty of any violation or attempt to
27 violate any law, rule or regulation of racing in any
28 jurisdiction for which suspension from racing might be
29 imposed in that jurisdiction.
30 (5) Has violated any rule, regulation or order of the
19850H0129B0143 - 25 -
1 commission.
2 (e) Inspection of contracts.--The commission shall have the
3 right to inspect all contracts between licensed corporations and
4 vendors of goods and services. The commission shall require by
5 rule or regulation that vendors disclose to the commission all
6 principal officers and a description of their interests in the
7 vendors' business. Failure to properly disclose this information
8 shall constitute grounds to deny, to revoke or to suspend any
9 vendor's license issued under the provisions of this act.
10 (f) Suspension or revocation of license.--The commission
11 shall suspend or revoke a license issued under this section, if
12 it determines that:
13 (1) The applicant or licensee:
14 (i) Has been convicted of a crime involving moral
15 turpitude.
16 (ii) Has engaged in bookmaking or other form of
17 illegal gambling.
18 (iii) Has been found guilty of any fraud in
19 connection with racing or breeding.
20 (iv) Has been guilty of any violation or attempt to
21 violate any law, rule or regulation of any racing
22 jurisdiction for which suspension from racing might be
23 imposed in that jurisdiction.
24 (v) Has violated any rule, regulation or order of
25 the commission.
26 (2) The experience, character or general fitness of any
27 applicant or licensee is such that the participation of the
28 person in dog racing or related activities would be
29 inconsistent with the public interest, convenience or
30 necessity or with the best interests of racing.
19850H0129B0143 - 26 -
1 (g) Temporary license.--Pending final determination of any
2 question under this section, the commission may issue a
3 temporary license upon such terms and conditions as it may deem
4 necessary or proper to effectuate the provisions of this act.
5 (h) Commission licensing and registration of dogs.--The
6 commission shall provide, through reasonable rules and
7 regulations, for the licensing and registration of all dogs
8 competing in dog race meetings governed by this act. The
9 registration shall include the dog's name, which shall be the
10 only name under which said dog shall compete. The name shall not
11 be changed without prior written approval by the commission, and
12 shall not be used by any other Pennsylvania registered dog. The
13 licensed owner of a registered dog shall renew the registration
14 yearly and shall promptly notify the commission of the
15 retirement from racing or death of the registered dog. This duty
16 may be delegated to a State dog owners or breeders association
17 by contract if such an association is incorporated under the
18 laws of this Commonwealth. Said contract must be approved by the
19 Governor upon the recommendation of the Secretary of
20 Agriculture.
21 Section 214. Power of commission to impose fines and penalties.
22 (a) General rule.-- The commission is authorized and
23 empowered to impose fines upon any corporation, association or
24 person participating in any way in any dog race meeting at which
25 pari-mutuel wagering is conducted, other than as a patron and
26 whether licensed by the commission or not, for a violation of
27 any provision of this act or the rules and regulations
28 promulgated by the commission, not exceeding $5,000 for each
29 violation, which fines shall be paid into the General Fund
30 through the Department of Revenue. Following exhaustion of any
19850H0129B0143 - 27 -
1 administrative remedies promulgated by the commission for such
2 purpose, the action of the commission in imposing any monetary
3 fine shall be subject to appeal to the Commonwealth Court and as
4 approved by that court system, or if no court appeal is taken,
5 then as imposed, may be collected in an action of assumpsit.
6 (b) Conflicts of interests.--No officer or employee of a
7 licensed corporation or their spouses, parents, fathers-in-law,
8 sons, daughters, sons-in-law or daughters-in-law shall have any
9 direct or indirect interest in a racing dog that is
10 participating in a race at a meet at which such person or
11 heretofore mentioned relative holds any interest in the licensed
12 corporation conducting the meet or the track facility. An
13 officer or employee of a licensed corporation or their spouses,
14 parents, fathers-in-law, mothers-in-law, sons, daughters, sons-
15 in-law or daughters-in-law may have an interest in a racing dog
16 and enter it at meets that are conducted by licensed
17 corporations or at race tracks in which such a person or
18 heretofore mentioned relative holds no direct or indirect
19 interest. The commission shall impose a fine or penalty upon any
20 person for violation of this subsection as provided for under
21 subsection (a).
22 Section 215. Security personnel; powers and duties; penalty.
23 (a) General rule.--The commission and any licensed
24 corporations are authorized and empowered to employ persons as
25 security personnel. These persons shall possess the powers and
26 duties of a peace officer with respect to the enforcement of the
27 criminal laws of this Commonwealth within the race meeting
28 grounds or enclosure. The designated persons are also authorized
29 to interrogate and eject from the race meeting grounds or
30 enclosure any persons suspected of violating any rule or
19850H0129B0143 - 28 -
1 regulation promulgated by the commission. The commission may
2 refuse admission to and eject from enclosure of the race track
3 operated by the licensed corporation, any person whose presence
4 there is, in the judgment of the commission, inconsistent with
5 the orderly or proper conduct of a race meeting or whose
6 presence or conduct is deemed detrimental to the best interest
7 of dog racing. The action of the commission in refusing any
8 person admission to, or ejecting him from, a race meeting ground
9 or enclosure shall not be because of the race, creed, color,
10 sex, national origin or religion of that person and shall be
11 reviewable by the Commonwealth Court.
12 (b) Corporation power refuse admission.--Except as provided
13 for in subsections (c) and (d), any licensed corporation may
14 refuse any person admission to, and eject any person from, the
15 enclosure of the race track operated by any association. No
16 person shall be refused admission or be ejected because of the
17 race, color, creed, sex, national origin or religion of that
18 person.
19 (c) Right to a hearing.--A licensed corporation may refuse
20 admission to, and eject from, the enclosure of the race track
21 operated by the corporation, any person licensed by the
22 commission under section 213 and employed at his occupation at
23 the race track but whose presence there is deemed detrimental to
24 the best interests of dog racing. The corporation shall cite the
25 reasons for determination that the person's presence is deemed
26 to be detrimental. The action of the corporation in refusing the
27 person admission to, or ejecting him from, a race meeting ground
28 or enclosure shall have immediate effect. The person refused
29 admission or ejected shall receive a hearing before the
30 commission, if requested, pursuant to rules and regulations
19850H0129B0143 - 29 -
1 adopted for that purpose by the appropriate commission and a
2 decision rendered following the hearing.
3 (d) Law enforcement official.--A licensed corporation may
4 not refuse admission to or eject a law enforcement official
5 while that official is actually engaged in the performance of
6 official duties.
7 (e) Fine and punishment.--A person found within a race track
8 enclosure after having been refused admission thereto or ejected
9 therefrom shall, upon conviction thereof in a summary
10 proceeding, be sentenced to pay a fine not exceeding $300 or
11 undergo imprisonment for a term not exceeding 90 days, or both.
12 Section 216. Interstate simulcastings of dog races.
13 The commission may, upon request by any licensed corporation,
14 grant permission for electronically televised simulcasts of dog
15 races to be operated by the licensed corporation at the race
16 track enclosure where a dog race meeting is being conducted
17 during, between, before or after posted races for that racing
18 day. The simulcasts shall be limited to dog races conducted at
19 facilities outside this Commonwealth and televised to race track
20 enclosures within this Commonwealth. All simulcasts of dog races
21 from outside this Commonwealth shall also comply with any
22 Federal law regulating such wagering. All forms of pari-mutuel
23 wagering as described under section 221 shall be allowed on dog
24 races to be televised by simulcasting. The commission may
25 promulgate rules or regulations to regulate the wagering and the
26 operation of these dog races. All money wagered by patrons on
27 these dog races shall be computed in the amount of money wagered
28 each racing day for purposes of taxation under section 222.
29 Section 217. Refunds.
30 (a) General rule.--Money received by the commission may,
19850H0129B0143 - 30 -
1 within one year from receipts thereof, be refunded to the party
2 for whose account the same was received, on proof satisfactory
3 to the commission that:
4 (1) the moneys were in excess of the amount required by
5 law;
6 (2) the license for which application was made has been
7 refused by the commission;
8 (3) the moneys were received as a fine and the
9 commission has, after review, reduced the amount of the fine;
10 or
11 (4) upon appeal, the court reduced or remitted the fine
12 imposed and paid.
13 (b) Source of refunds.--Refunds shall, upon approval by the
14 commission and after approval by the Board of Finance and
15 Revenue, be paid from any moneys in the State Dog Racing Fund.
16 Section 218. Place and manner of conducting pari-mutuel
17 wagering.
18 (a) General rule.--Every licensed corporation shall provide,
19 during a dog race meeting, a place or places within the race
20 track enclosure at which the licensed corporation shall conduct
21 the pari-mutuel system of wagering by its patrons on the results
22 of dog races held at such meetings or televised to the race
23 track enclosure by simulcasting. The licensed corporation shall
24 erect a sign or board upon which shall be displayed the
25 approximate straight odds on each dog in any race; the value of
26 a winning mutuel ticket, straight, place or show, on the first
27 three dogs in the race; the elapsed time of the race; the value
28 of a winning daily double ticket, if a daily double be
29 conducted; and any other information that the commission may
30 deem necessary for the guidance of the general public. The
19850H0129B0143 - 31 -
1 commission may prescribe, by rule, the type and kind of
2 equipment to be used for the display for the foregoing
3 information.
4 (b) Telephone wagering system.--The commission may, upon
5 request by any licensed corporation, grant permission to the
6 licensed corporation to conduct a telephone account wagering
7 system: Provided, however, That all telephone messages to place
8 wagers must be to a place within the race track enclosure: And
9 provided further, That all moneys used to place telephone wagers
10 be on deposit in an amount sufficient to cover the wager at the
11 race track where the account is opened. Each commission may
12 promulgate rules or regulations to regulate telephone account
13 wagering. All moneys wagered as a result of telephone account
14 wagering shall be included in the amount wagered each racing day
15 for purposes of taxation under section 222 and shall be included
16 in the same pari-mutuel pools for each posted race. All
17 telephone account wagering systems shall be solely operated by
18 the licensed corporations.
19 (c) Rules for telephone wagering.--A licensed corporation
20 shall only accept and tabulate a wager by a direct telephone
21 call from the holder of a telephone wagering account. No person
22 shall directly or indirectly act as an intermediary, transmitter
23 or agent in the placing of wagers for a holder of a telephone
24 wagering account. No person shall in any manner place any wager
25 by telephone to a facility in the race track enclosure on behalf
26 of a holder of a telephone wagering account. Only the holder of
27 a telephone wagering account shall place a telephone wager. Any
28 person violating this subsection shall be guilty of a
29 misdemeanor of the first degree.
30 Section 219. Books and records of pari-mutuel wagering.
19850H0129B0143 - 32 -
1 Every corporation that conducts a dog race meeting at which
2 pari-mutuel wagering is authorized shall keep books and records
3 so as to clearly show by separate record the total amount of
4 money contributed to every pari-mutuel pool. The Department of
5 Revenue or its authorized representative shall have access to
6 all books and records for the purpose of examining the same and
7 ascertaining whether the proper amount due to the State is being
8 paid by the licensed corporation.
9 Section 220. Filing of certain agreements with the commission.
10 Every corporation licensed to conduct dog race meetings at
11 which pari-mutuel wagering is permitted shall promptly, after
12 entering any lease agreement concerning any concession, labor
13 management relation, hiring of designated classes of officers,
14 employees or contractors specified by the commission or any such
15 other contract or agreement as the commission may prescribe,
16 file with the appropriate commission a true and correct copy, or
17 an accurate summary, if oral.
18 Section 221. Retention percentages for pari-mutuel pools.
19 (a) General rule.--Every licensed corporation shall
20 distribute the moneys in any pari-mutuel pool to the holders of
21 winning tickets under the following requirements:
22 (1) All tickets shall be presented for payment before
23 April 1 of the year following the year of their purchase.
24 (2) Seventeen percent of the moneys plus the breakage
25 from regular wagering pools shall be retained by the licensed
26 corporations for further distribution under section 222.
27 (3) Nineteen percent of the moneys plus the breakage
28 from regular wagering pools from licensed corporations whose
29 total deposits in all pari-mutuel pools averaged less than
30 $300,000 per racing day for their previous meeting at the
19850H0129B0143 - 33 -
1 same facility shall be retained by the licensed corporations
2 for further distribution under section 222.
3 (4) Nineteen percent of the moneys plus the breakage
4 from the exacta, daily double, quinella and other wagering
5 pools involving two dogs each racing day shall be retained by
6 the licensed corporations for further distribution under
7 section 222.
8 (5) At least 25% but no more than 35% of the moneys plus
9 the breakage from the trifecta or other wagering pools
10 involving more than two dogs in one or more races each racing
11 day shall be retained by the licensed corporations for
12 further distribution under section 222.
13 (6) Every corporation may retain less than 17% or 19% of
14 the moneys in the wagering pools under paragraphs (2), (3)
15 and (4) or less than 25% of the moneys in the wagering pools
16 under paragraph (5) upon approval from the commission.
17 (7) Every corporation may retain more than 25% but no
18 more than 35% of the moneys in the wagering pools under
19 paragraph (5) upon approval from the commission.
20 (8) All money remaining in the wagering pools described
21 under paragraphs (2), (3), (4), (5), (6) and (7) shall be
22 distributed to the holders of winning tickets.
23 (b) Definition.--Breakage shall mean the odd cents of
24 redistributions to be made on all contributions to pari-mutuel
25 pools exceeding a sum equal to the next lowest multiple of ten.
26 (c) Rules and regulations.--The commission shall establish
27 by rule or regulation provisions from minus-pools relating to
28 the retention requirements under this section.
29 Section 222. Distribution of moneys retained from pari-mutuel
30 pools; taxation.
19850H0129B0143 - 34 -
1 (a) General rule.--At the close of each racing day, all
2 licensed corporations, out of the moneys retained on that day
3 under section 221, shall distribute the moneys in the following
4 manner:
5 (1) Seven-tenths of one percent of the amount wagered
6 each racing day at dog race meetings shall be paid through
7 the Department of Revenue into the State Treasury for credit
8 to the Pennsylvania Dog Breeding Fund.
9 (2) There is hereby created the State Dog Racing Fund.
10 All licensed corporations that conduct dog race meetings
11 shall pay a tax through the Department of Revenue for credit
12 to the State Dog Racing Fund. The tax imposed on all licensed
13 corporations shall be a percentage tax on the amount wagered
14 each racing day and be paid from the money retained under
15 section 221. The tax shall be computed according to the
16 following schedule:
17 (i) For the first 35 racing days in each calendar
18 year conducted by each licensed corporation, the tax is 4
19 1/2%.
20 (ii) For the 36th racing day through the 55th racing
21 day in each calendar year conducted by each licensed
22 corporation, the tax is 4%.
23 (iii) For the 56th racing day through the 75th
24 racing day in each calendar year conducted by each
25 licensed corporation, the tax is 3 1/2%.
26 (iv) For the 76th racing day through the 95th racing
27 day in each calendar year conducted by each licensed
28 corporation, the tax is 2 1/2%.
29 (v) For the 96th racing day through the 115th racing
30 day in each calendar year conducted by each licensed
19850H0129B0143 - 35 -
1 corporation, the tax is 2 1/2%.
2 (vi) For the 116th racing day through the 150th
3 racing day in each calendar year conducted by each
4 licensed corporation, the tax is 2%.
5 For purposes of this subsection, a racing day shall be
6 considered conducted after the appropriate commission has
7 certified the allocation of racing days to the Secretary of the
8 Department of Revenue under the provisions of section 207(b)
9 even if the racing day is subsequently canceled by the licensed
10 corporation for reasons beyond its control.
11 (b) Manner of distribution of State Dog Racing Fund.--Money
12 in the State Dog Racing Fund shall be distributed by the
13 Department of Revenue in the following manner:
14 (1) The salaries of employees of the commission employed
15 by or for it under the provisions of this act and the act of
16 April 9, 1929 (P.L.177, No.175), known as The Administrative
17 Code of 1929.
18 (2) The payment of the compensation of employees of the
19 Department of Revenue when used in collecting taxes and
20 penalties imposed by this act.
21 (3) The expenses of the Secretary and the Department of
22 Agriculture incurred in administering their duties under this
23 act.
24 (4) All other expenses incurred by the commission in
25 administering this act.
26 (5) On or before February 15 of each year, to the
27 various school districts throughout the Commonwealth, the
28 excess money in the State Dog Racing Fund after the payments
29 required in paragraphs (1) through (4) are made.
30 (i) The payment to each school district shall be
19850H0129B0143 - 36 -
1 made under the direction of the Department of Education,
2 which shall compute the amount due each school district
3 according to its subsidy formula for basic education.
4 (ii) Each school district shall reduce its school
5 property tax by an amount equal to 90% of the money it
6 receives from the State Dog Racing Fund each year.
7 (c) Manner of distribution of breakage.--All breakage
8 retained under section 221 by licensed corporations that conduct
9 dog race meetings shall be distributed in the following manner:
10 (1) Fifty percent of the breakage shall be retained by
11 the licensed corporations.
12 (2) Twenty-five percent of the breakage shall be paid to
13 the Pennsylvania Dog Breeding Fund.
14 (3) Twenty-five percent of the breakage shall be paid to
15 the Department of Revenue for credit to the State Dog Racing
16 Fund.
17 (d) Remaining moneys.--All remaining moneys retained under
18 section 221 and not heretofore distributed shall be kept by the
19 licensed corporations for their use.
20 Section 223. Pennsylvania Dog Breeding Fund.
21 (a) Creation.--There is hereby created a restricted account
22 in the State Dog Racing Fund to be known as the Pennsylvania Dog
23 Breeding Fund which shall consist of the amount of money
24 appropriated under the provisions of section 222 and which shall
25 be administered by the State Dog Racing Commission.
26 (b) Provisions for awards.--After the deduction of expenses
27 related to the administration and development of the
28 Pennsylvania Dog Breeding Fund Program incurred by the
29 commission shall, by rule or regulation, provide for awards as
30 follows:
19850H0129B0143 - 37 -
1 (1) An award of 20% of the purse earned by every
2 registered Pennsylvania-bred dog which finishes first, second
3 or third in any race conducted by a licensed corporation
4 under this act shall be paid to the breeder of said
5 registered Pennsylvania-bred dog.
6 (2) An award of 10% of the purse earned by the
7 Pennsylvania-bred dog which finishes first, second or third
8 in any race conducted by a licensed corporation under this
9 act shall be paid to the owner of the registered Pennsylvania
10 dog which regularly stood in Pennsylvania at the time of
11 conception of said Pennsylvania-bred dog.
12 (3) An award of 10% of the purse earned by any
13 registered Pennsylvania-bred dog which finishes first in any
14 race conducted by a licensed corporation under this act not
15 restricting entry to registered Pennsylvania-bred dogs shall
16 be paid to the licensed owner of said registered
17 Pennsylvania-bred dog at the time of winning.
18 (c) Purses for restricted entry.--Up to one-fifth of the
19 total of the estimated fund moneys remaining each year after the
20 deduction of expenses related to the administration and
21 development of the Pennsylvania Dog Breeding Fund Program and
22 the payment of breeder, dog and owner awards, shall be divided
23 among the licensed corporations that conduct dog meetings in
24 direct proportion to the rate by which each licensed corporation
25 generated the fund moneys during the previous year to be used
26 solely for purses for Pennsylvania Dog Breeding Fund stakes
27 races which restrict entry to registered Pennsylvania-bred dogs.
28 (d) Division of remaining moneys.--The fund moneys remaining
29 following disbursements as directed in subsections (b) and (c)
30 shall be divided among the licensed corporations that conduct
19850H0129B0143 - 38 -
1 dog race meetings in direct proportion to the rate by which each
2 licensed corporation generated the fund moneys during the
3 previous year to be used for purses as follows:
4 (1) Claiming and nonclaiming Pennsylvania Dog Breeding
5 Fund races which restrict entry to registered Pennsylvania-
6 bred dogs.
7 (2) Claiming and nonclaiming Pennsylvania Dog Breeding
8 Fund races which prefer registered Pennsylvania-bred dogs as
9 starters. In these races, should eight or more registered
10 Pennsylvania-bred dogs pass the entry box, the race shall be
11 considered closed to dogs other than registered Pennsylvania-
12 bred dogs.
13 (e) Disposition of unexpended moneys.--Those Pennsylvania
14 Dog Breeding Fund moneys due licensed corporations as outlined
15 in subsections (c) and (d) but not expended during the calendar
16 year may be carried forth in the fund on the account of said
17 licensed corporations to be expended during the succeeding year
18 in addition to said corporations' fund moneys annually due them
19 in purses.
20 Section 224. The Pennsylvania Dog Breeding Fund Advisory
21 Committee.
22 The Pennsylvania Dog Breeding Fund Advisory Committee, under
23 the jurisdiction of the State Dog Racing Commission is hereby
24 established and shall be part of the State Dog Racing
25 Commission. The commission shall consist of five members, all of
26 whom shall be residents of this Commonwealth, to be appointed by
27 the commission by June 1 of each year. The committee shall
28 consist of two members of the Pennsylvania Dog Breeders'
29 Association, one member from the licensed corporations, one
30 member from the association representing dog owners racing in
19850H0129B0143 - 39 -
1 Pennsylvania and one member of the commission. If any member
2 other than the commission member has not been recommended by
3 June 1 of each year, the committee shall make an appointment for
4 the organization failing to recommend a member to the committee.
5 The committee shall assist and advise the commission under the
6 provisions of this act but shall have no power in administering
7 the fund. The members of the committee shall receive no
8 compensation for their services as members.
9 Section 225. Hearing of refusal or revocation of license.
10 If the commission refuses to grant any license applied for
11 under this act, or shall revoke or suspend any license granted,
12 the applicant or licensee may demand, within ten days after
13 notice of the decision of the commission, a hearing before the
14 commission. The commission shall give prompt notice of the time
15 and place for the hearing, at which time the commission will
16 hear the applicant or licensee. Pending the hearing and final
17 determination, the action of the commission in refusing to grant
18 or in revoking or suspending a license shall remain in full
19 force. The commission may continue any hearing, from time to
20 time, for the convenience of any of the parties. Any of the
21 parties affected by a hearing may be represented by counsel. In
22 the conduct of the hearing, the commission shall not be bound by
23 technical rules of evidence, but all evidence offered before the
24 commission shall be reduced to writing. All evidence, exhibits
25 and findings of the commission shall be permanently preserved
26 and shall constitute the record of the commission. In connection
27 with the hearing, the commission shall have the power to
28 administer oaths and examine witnesses, and may issue subpoenas
29 to compel attendance of witnesses and the production of all
30 material and relevant reports, books, papers, documents,
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1 correspondence and other evidence. The commission may by order
2 refer to one or more of its officers the duty of taking
3 testimony in the matter and to report to the commission. Within
4 30 days after the conclusion of the hearing, the commission
5 shall make a final order in writing, setting forth the reasons
6 for the action taken by it and a copy thereof shall be served on
7 the applicant or licensee.
8 Section 226. Approval of the racing facility.
9 The commission shall not grant to a corporation formed under
10 this act a license to conduct a dog race meeting at which pari-
11 mutuel betting may be conducted until the corporation has
12 submitted to the commission a statement of the location of its
13 proposed grounds and race track, together with a plan of the
14 track and plans of all buildings, seating stands and other
15 structures in a form as the commission may prescribe. All plans
16 shall be approved by the commission before the issuance of any
17 license to conduct a pari-mutuel dog race meeting.
18 Section 227. Prohibition of wagering by certain officials,
19 employees and minors.
20 No commissioner, executive secretary, deputy, officer,
21 representative, employee or counsel of the commission shall
22 wager upon the outcome of any dog race conducted at a track at
23 which pari-mutuel wagering is conducted by any licensed
24 corporation of the commission. No licensed corporation shall
25 permit any person who is actually and apparently under 18 years
26 of age to wager at a race meeting conducted by it. No licensed
27 corporation shall permit any person who is under 18 years of age
28 to attend a dog race meeting conducted by it unless the person
29 is accompanied by a parent or guardian. This section shall not
30 be construed to prohibit persons under 18 years of age, who are
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1 legally employed, from being upon the race track premises for
2 the sole purpose of engaging in the performance of their duties
3 as employees. The commission shall, by rule, provide for
4 enforcement of this section.
5 Section 228. Dog racing veterinarians and State steward.
6 (a) General rule.--The commission shall appoint and employ
7 licensed veterinarians and a steward to serve as the dog racing
8 veterinarians and State steward for dog racing, respectively, at
9 each meeting conducted by a corporation licensed by the
10 commission. The commission shall have the authority to employ
11 other individuals as shall be necessary to carry out the
12 responsibilities of this section.
13 (b) Costs and compensation.--The costs and compensation of
14 the dog racing veterinarians, State steward and other
15 individuals employed shall be fixed and paid by the commission.
16 Section 229. Free passes, cards or badges.
17 (a) General rule.--A licensed corporation shall not issue
18 free passes, cards or badges without admission tax, except to
19 persons hereafter described:
20 (1) Officers, employees and shareholders of the
21 corporation conducting the race meeting.
22 (2) Members, officers and employees of the commission.
23 (3) Members of dog racing associations of other states
24 and foreign countries.
25 (4) Public officers engaged in the performance of their
26 duties.
27 (5) Persons employed and accredited by the press to
28 attend such meeting.
29 (6) Owners, kennel managers, trainers, concessionaires
30 and other persons whose actual duties require their presence
19850H0129B0143 - 42 -
1 at the race track.
2 (b) Seasonal tickets and special promotional programs.--The
3 commission may allow a licensed corporation to issue free
4 passes, cards or badges for special promotional programs and
5 seasonal discount ticket programs, so long as the corporation
6 has obtained approval from the commission. The admission taxes
7 under section 208 shall be imposed on the price of all seasonal
8 discount tickets sold by a licensed corporation.
9 (c) Rules and regulations.--The issuance of tax-free passes,
10 cards or badges shall be under the rules and regulations of the
11 commission. A list of all persons, except persons admitted under
12 an approved special promotional program or seasonal discount
13 ticket program, to whom free passes, cards or badges are issued
14 shall be filed with the appropriate commission.
15 Section 230. Political subdivision agricultural fairs and dog
16 race meetings not licensed to conduct or regulate
17 or tax pari-mutuel wagering.
18 (a) General rule.--Pari-mutuel wagering or dog races at any
19 county or other political subdivision, agricultural or other
20 fair shall not be authorized. No lottery, pool selling,
21 bookmaking or any other kind of gambling upon the results of
22 races, heats or contests of speed of dogs shall be allowed at
23 any fair or at any dog race meeting conducted in the State,
24 except those licensed to operate pari-mutuel wagering under the
25 provisions of this act.
26 (b) Exclusive regulatory statute.--This act is intended to
27 be the exclusive regulatory statute for dog racing in the
28 Commonwealth. No political subdivision shall attempt to regulate
29 or tax a dog race meeting, licensed under this act, held within
30 its borders.
19850H0129B0143 - 43 -
1 CHAPTER 3
2 MEDICATION RULES AND ENFORCEMENT PROVISIONS
3 Section 301. Mandatory requirements for medication rules.
4 (a) General rule.--The commission shall have in effect, at
5 all times when a licensed corporation conducts a dog race
6 meeting with pari-mutuel wagering, rules or regulations to
7 control the use and administration of any medication and the use
8 and administration of any device that affects the performance of
9 a race dog. The commission may establish permitted tolerance
10 levels and therapeutic dose allowances for all medication to be
11 used or administered to a race dog.
12 (b) Rules and regulations.--The commission shall establish
13 in its rules or regulations penalty provisions for the violation
14 of these rules or regulations.
15 Section 302. Establishment of the Pennsylvania Race Dog Testing
16 Laboratory.
17 (a) General rule.--The Pennsylvania Race Dog Testing
18 Laboratory shall be administered by a management committee
19 composed of the chairperson of the commission and the Secretary
20 of Agriculture. The laboratory is placed in and made a part of
21 the Department of Agriculture. All costs of the laboratory shall
22 be paid by the commission. The management committee shall
23 appoint and direct all personnel, establish a facility, acquire
24 all necessary equipment and supplies and adopt all necessary
25 procedures.
26 (b) Purposes.--The purposes of the Pennsylvania Race Dog
27 Testing Laboratory are to analyze samples for the presence in
28 race dogs of any medication, to develop techniques, equipment
29 and procedures, to collect and test for the presence of
30 medication in race dogs to ascertain permitted tolerance levels
19850H0129B0143 - 44 -
1 or therapeutic dose allowances for medication, to offer
2 consultation and advice to the public on all issues regarding
3 the medication of race dogs and to conduct research in
4 medication issues involving race dogs.
5 CHAPTER 4
6 MISCELLANEOUS PROVISIONS
7 Section 401. Repeals.
8 All acts and parts of acts are repealed insofar as they are
9 inconsistent with this act.
10 Section 402. Severability.
11 The provisions of this act are severable. If any provision of
12 this act or its application to any person or circumstance is
13 held invalid, the invalidity shall not affect other provisions
14 or applications of this act which can be given effect without
15 the invalid provision or application.
16 Section 403. Effective date.
17 This act shall take effect in 60 days.
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