SENATE AMENDED PRIOR PRINTER'S NOS. 1365, 2699, 2864 PRINTER'S NO. 3326
No. 1177 Session of 1983
INTRODUCED BY SEVENTY, PISTELLA, MURPHY, DeLUCA, CAPPABIANCA, DUFFY, VAN HORNE, OLASZ, McVERRY, DAWIDA, PETRONE, COLE, DAVIES AND TRELLO, JUNE 7, 1983
SENATOR O'CONNELL, STATE GOVERNMENT, IN SENATE, RE-REPORTED AS AMENDED, JUNE 27, 1984
AN ACT 1 Amending the act of December 17, 1981 (P.L.435, No.135), 2 entitled "An act providing for the regulation of pari-mutuel 3 thoroughbred horse racing and harness horse racing 4 activities; imposing certain taxes and providing for the 5 disposition of funds from pari-mutuel tickets," PROVIDING FOR <-- 6 CERTAIN SIMULCASTING OF HORSE RACES; DEFINING OWNERSHIP 7 INTEREST SUBJECT TO REGULATION; AND providing for monitoring <-- 8 of wagering on video screens. RESTRICTING THE POWER OF THE <-- 9 COMMISSION RELATING TO NIGHT RACING; FURTHER REGULATING 10 INTERSTATE SIMULCASTING OF HORSE RACES; PLACING CERTAIN 11 LIMITATIONS ON THE TELEVISING OF HORSE RACES; AND PROVIDING 12 ADDITIONAL RACING DATES UNDER CERTAIN CIRCUMSTANCES. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. The SECTIONS 204 AND 210 SECTION 204 OF THE act <-- 16 of December 17, 1981 (P.L.435, No.135), known as the Race Horse 17 Industry Reform Act, is amended by adding a section ARE IS <-- 18 AMENDED to read: 19 SECTION 204. FILING OF INFORMATION CONCERNING STOCK TRANSFERS; <-- 20 NECESSITY FOR COMMISSIONS' APPROVAL. 21 (A) WHENEVER A TRANSFER OF STOCK [OF] COMPRISING AN INTEREST
1 OF 5% OR MORE IN ANY LICENSED CORPORATION [OR OF], ANY 2 CORPORATION WHICH LEASES TO A LICENSED CORPORATION THE TRACK 3 FACILITY AT WHICH IT CONDUCTS PARI-MUTUEL HORSE RACES OR ANY 4 CORPORATION WHICH OWNS 25% OR MORE OF THE STOCK OF THE LICENSED 5 CORPORATION SHALL BE MADE, THERE SHALL BE FILED, SIMULTANEOUSLY, 6 WITH THE CORPORATION WHICH ISSUED SUCH STOCK THE FOLLOWING: 7 (1) IN DUPLICATE, AN AFFIDAVIT EXECUTED BY THE 8 TRANSFEREE OF THE INTEREST STATING THAT HE IS TO BE THE SOLE 9 BENEFICIAL OWNER THEREOF, AND WHETHER OR NOT HE: 10 (I) HAS BEEN CONVICTED OF A CRIME INVOLVING MORAL 11 TURPITUDE; 12 (II) HAS BEEN ENGAGED IN BOOKMAKING OR OTHER FORMS 13 OF ILLEGAL GAMBLING; 14 (III) HAS BEEN FOUND GUILTY OF ANY FRAUD OR 15 MISREPRESENTATION IN CONNECTION WITH RACING OR BREEDING; 16 (IV) HAS BEEN GUILTY OF ANY VIOLATION OR ATTEMPT TO 17 VIOLATE ANY LAW, RULE OR REGULATION OF ANY RACING 18 JURISDICTION, FOR WHICH SUSPENSION FROM RACING MIGHT BE 19 IMPOSED IN SUCH JURISDICTION; OR 20 (V) HAS VIOLATED ANY RULE, REGULATION OR ORDER OF 21 THE COMMISSIONS. 22 IF THE TRANSFEREE OF THE INTEREST IS NOT, OR IS NOT TO BE, 23 THE SOLE BENEFICIAL OWNER, THERE SHALL BE ANNEXED TO THE 24 AFFIDAVIT OF THE TRANSFEREE, AND EXPRESSLY STATED IN SUCH 25 AFFIDAVIT, A TRUE AND COMPLETE COPY OF ALL TERMS OF THE 26 AGREEMENT PURSUANT TO WHICH THE [STOCK] INTEREST IN THE 27 CORPORATION IS TO BE HELD BY THE TRANSFEREE, INCLUDING A 28 DETAILED STATEMENT OF THE INTEREST OF EACH PERSON WHO IS TO 29 HAVE ANY INTEREST THEREIN. 30 (2) IN DUPLICATE, AN AFFIDAVIT EXECUTED BY EACH PERSON 19830H1177B3326 - 2 -
1 FOR WHOM THE [STOCK, OR ANY] INTEREST [THEREIN,] IS TO BE
2 HELD BY THE TRANSFEREE, SETTING FORTH WHETHER OR NOT THE
3 AFFIANT:
4 (I) HAS BEEN CONVICTED OF A CRIME INVOLVING MORAL
5 TURPITUDE;
6 (II) HAS ENGAGED IN BOOKMAKING OR OTHER FORMS OF
7 ILLEGAL GAMBLING;
8 (III) HAS BEEN FOUND GUILTY OF ANY FRAUD OR
9 MISREPRESENTATION IN CONNECTION WITH RACING OR BREEDING;
10 (IV) HAS BEEN GUILTY OF ANY VIOLATION OR ATTEMPT TO
11 VIOLATE ANY LAW, RULE OR REGULATION OF ANY RACING
12 JURISDICTION, FOR WHICH SUSPENSION FROM RACING MIGHT BE
13 IMPOSED IN SUCH JURISDICTION; OR
14 (V) HAS VIOLATED ANY RULE, REGULATION OR ORDER OF
15 THE COMMISSIONS.
16 TO EACH OF THE AFFIDAVITS SHALL BE ANNEXED, AND EXPRESSLY
17 STATED IN SUCH AFFIDAVIT, A TRUE AND COMPLETE COPY OF ALL THE
18 TERMS OF THE AGREEMENT PURSUANT TO WHICH [STOCK] THE INTEREST
19 IS TO BE HELD BY THE TRANSFEREE, INCLUDING A DETAILED
20 STATEMENT OF THE INTEREST OF EACH PERSON WHO IS TO HAVE ANY
21 INTEREST THEREIN. THE CORPORATION SHALL FILE WITH THE
22 APPROPRIATE COMMISSION ONE OF EACH DUPLICATE AFFIDAVITS.
23 (B) IF, AFTER THE FILING OF ANY AFFIDAVIT REQUIRED TO BE
24 FILED, THERE SHALL BE ANY CHANGE IN THE STATUS OF ANY AFFIANT
25 WITH RESPECT TO ANY OF THE MATTERS SET FORTH IN SUBSECTION
26 (A)(1) OF THE AFFIDAVIT FILED, THE AFFIANT SHALL FILE WITH THE
27 CORPORATION WITH WHICH HIS AFFIDAVIT WAS SO FILED A NEW
28 AFFIDAVIT, EXECUTED BY HIM IN DUPLICATE, SETTING FORTH THE
29 CHANGE OF STATUS AND THE CORPORATION SHALL FILE ONE OF THESE
30 AFFIDAVITS WITH THE APPROPRIATE COMMISSION.
19830H1177B3326 - 3 -
1 (C) WHENEVER ANY CHANGE SHALL BE MADE IN THE AMOUNT, NATURE 2 OR OF THE INTEREST OF ANY PERSON HAVING AN INTEREST OF 5% OR 3 MORE IN [STOCK OF] ANY CORPORATION, OR ANY NEW INTEREST OF 5% OR 4 MORE SHALL BE CREATED THEREIN, WITHOUT A TRANSFER AS PROVIDED, 5 THE RECORD OWNER OF THE STOCK, AND EACH PERSON WHOSE INTEREST 6 HAS BEEN ATTEMPTED TO BE CHANGED OR CREATED, SHALL FILE WITH THE 7 CORPORATION WHICH ISSUED THE STOCK, IN DUPLICATE, AFFIDAVITS AS 8 PROVIDED BY SUBSECTION (A)(1) AND (2), EXCEPT THAT THESE 9 AFFIDAVITS NEED NOT INCLUDE THE MATTER REFERRED TO IN SUBSECTION 10 (A) UNLESS THEN REQUIRED PURSUANT TO SUBSECTION (B) AND ONE COPY 11 THEREOF SHALL BE FILED BY THE CORPORATION WITH THE APPROPRIATE 12 COMMISSION. 13 (D) IF THE APPROPRIATE COMMISSION DETERMINES THAT IT IS 14 INCONSISTENT WITH THE PUBLIC INTEREST, CONVENIENCE, OR 15 NECESSITY, OR WITH THE BEST INTEREST OF RACING GENERALLY, THAT 16 ANY PERSON HAVING AN INTEREST OF 5% OR MORE CONTINUE TO BE A <-- 17 STOCKHOLDER OF RECORD, OR THE BENEFICIAL OWNER OF [ANY] THAT <-- 18 INTEREST IN STOCK STANDING IN THE NAME OF ANOTHER IN ANY 19 LICENSED CORPORATION OR OF ANY CORPORATION WHICH LEASES TO SUCH 20 LICENSED CORPORATION THE TRACK AT WHICH IT CONDUCTS PARI-MUTUEL 21 HORSE RACING OR WHICH OWNED 25% OR MORE OF THE STOCK OF THE 22 LICENSEE, THE APPROPRIATE COMMISSION SHALL HAVE FULL POWER AND 23 AUTHORITY TO ORDER EACH SUCH STOCKHOLDER OR BENEFICIAL OWNER TO <-- 24 DISPOSE OF HIS STOCK OR INTEREST WITHIN A PERIOD OF TIME TO BE 25 SPECIFIED BY THE APPROPRIATE COMMISSION, WHICH PERIOD THE 26 APPROPRIATE COMMISSION SHALL HAVE FULL POWER TO EXTEND. 27 (E) IF THE COMMISSIONS SHALL MAKE ANY ORDER OR DIRECTION AS 28 PROVIDED IN SUBSECTION (D), THE PERSON AGGRIEVED SHALL BE GIVEN 29 NOTICE OF THE TIME AND PLACE OF A HEARING BEFORE THE APPROPRIATE 30 COMMISSION, AT WHICH TIME THE APPROPRIATE COMMISSION WILL HEAR 19830H1177B3326 - 4 -
1 THE PERSON IN REFERENCE THERETO. 2 SECTION 2. SECTION 207 OF THE ACT IS AMENDED BY ADDING A <-- 3 SUBSECTION TO READ: 4 SECTION 207. ALLOCATION OF RACING DAYS. 5 * * * 6 (E) AFTER JULY 1, 1984, THE COMMISSION SHALL NOT HAVE THE 7 POWER TO EXTEND THE PRIVILEGE OF NIGHT RACING TO ANY LICENSED 8 CORPORATION WHICH DID NOT HAVE THE AUTHORITY TO CONDUCT NIGHT 9 RACING PRIOR TO JULY 1, 1984. 10 SECTION 3. SECTIONS 210 AND 216 OF THE ACT ARE AMENDED TO 11 READ: 12 SECTION 210. SHAREHOLDERS. 13 (A) EACH LICENSED CORPORATION SHALL, ONCE A YEAR, PROVIDE 14 THE APPROPRIATE COMMISSION WITH A COMPLETE LIST OF ALL ITS 15 SHAREHOLDERS HAVING AN INTEREST OF 5% OR MORE IN THE <-- 16 CORPORATION, INDICATING THE NUMBER OF SHARES BY EACH LISTED <-- 17 SHAREHOLDER. 18 (B) IT SHALL BE THE DUTY OF EACH LICENSED CORPORATION WITHIN 19 TEN DAYS AFTER ANY TRANSFER OF STOCK COMPRISING AN INTEREST OF 20 5% OR MORE IN SUCH LICENSEE, TO NOTIFY THE APPROPRIATE 21 COMMISSION OF THE TRANSFER. 22 (C) EACH CERTIFICATE OF STOCK ISSUED BY A LICENSED 23 CORPORATION TO A SHAREHOLDER HAVING AN INTEREST OF 5% OR MORE IN <-- 24 THE CORPORATION A 5% OR GREATER INTEREST SHALL HAVE NOTED ON THE <-- 25 FACE THEREOF THAT THE PERSON WHOSE NAME IS INDICATED AS THE 26 OWNER OF [THE] SUCH SHARES OF STOCK BY THE CERTIFICATE IS THE <-- 27 SOLE AND ABSOLUTE OWNER, AND THAT HE IS NOT HOLDING [THE] SUCH <-- 28 SHARES OF STOCK OR ANY PORTION OF [THE] SUCH SHARES OF STOCK <-- 29 REPRESENTED BY THE CERTIFICATE IN TRUST FOR ANY PERSON, 30 PARTNERSHIP, FIRM OR CORPORATION WHO OR WHICH IS PROHIBITED FROM 19830H1177B3326 - 5 -
1 OWNING [THE] SUCH SHARES OF STOCK. IF ANY OF [THE] SUCH SHARES <-- 2 OF STOCK REPRESENTED BY A CERTIFICATE OF STOCK ARE HELD SUBJECT 3 TO THE TERMS OF EITHER AN INTER VIVOS OR TESTAMENTARY TRUST FOR 4 THE BENEFIT OF ANY PERSON WHO COULD LAWFULLY OWN SUCH STOCK IN 5 HIS OWN NAME, THE FACT SHALL BE NOTED ON THE FACE OF THE 6 CERTIFICATE AND A COPY OF THE INSTRUMENT WHICH CREATED THE TRUST 7 SHALL BE ATTACHED. A DUPLICATE COPY OF THE INSTRUMENT WHICH 8 CREATED THE TRUST SHALL BE FILED WITH THE APPROPRIATE 9 COMMISSION. 10 (D) NO PROPERTY RIGHTS SHALL EXIST IN ANY SHARES OF STOCK OF 11 ANY LICENSED CORPORATION ISSUED TO A SHAREHOLDER HAVING AN <-- 12 INTEREST OF 5% OR MORE IN THE CORPORATION WHICH SHARES WHICH ARE <-- 13 HELD IN TRUST CONTRARY TO THE PROVISIONS OF THIS SECTION AND THE 14 SAME SHALL BE FORFEITED TO THE COMMONWEALTH AFTER REASONABLE 15 NOTICE AND UPON HEARING AND PROOF THEREOF IN ANY SUIT INSTITUTED 16 BY THE ATTORNEY GENERAL OF PENNSYLVANIA. UPON IT BEING 17 ESTABLISHED THAT THE STOCK IS SUBJECT TO FORFEITURE BY LEGAL 18 ADJUDICATION, THE APPROPRIATE COMMISSION SHALL SELL THE 19 FORFEITED STOCK AT PUBLIC SALE, UPON PROPER NOTICE, TO THE 20 HIGHEST BIDDER. THE PROCEEDS FROM THE SALE SHALL BE DEPOSITED IN 21 THE GENERAL FUND OF THE COMMONWEALTH OF PENNSYLVANIA. 22 (E) AS USED IN THIS SECTION, THE TERM "LICENSED CORPORATION" 23 SHALL INCLUDE ANY LICENSED CORPORATION AS DEFINED IN SECTION 102 24 AND ALSO ANY FIRM, ASSOCIATION OR CORPORATION WHICH OWNS OR 25 LEASES TO ANY LICENSED ASSOCIATION OR CORPORATION A RACE TRACK 26 AT WHICH PARI-MUTUEL RACING IS CONDUCTED, OR ANY FIRM, 27 ASSOCIATION OR CORPORATION WHICH PARTICIPATES IN THE MANAGEMENT 28 OF ANY SUCH LICENSED CORPORATION. 29 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION SECTIONS <-- 30 to read: 19830H1177B3326 - 6 -
1 Section 233. Monitoring of wagering on video screens. 2 Every corporation licensed to conduct pari-mutuel betting 3 shall display on video screens the approximate odds or 4 approximate will pays on each horse for each race as well as any 5 combination of races including, but not limited to, quinellas, 6 exactas, perfectas and any other combination or pool of races. 7 NO DISPLAY OF APPROXIMATE ODDS OR APPROXIMATE WILL PAYS SHALL BE <-- 8 REQUIRED WHERE THE WAGER IS ON HORSES IN FOUR OR MORE RACES, 9 SUCH AS "PICK 4, PICK 5 OR PICK 6." In addition to displaying 10 the amount of money wagered, the approximate odds or approximate 11 will pays on each horse or combination of horses shall be shown 12 on video screens IN EACH WAGERING DIVISION. For trifectas, in <-- 13 lieu of odds or approximate will pays, the amount of money being 14 wagered on each horse to win in the trifecta pool shall be 15 displayed on video screens separately from any other 16 information. The above required information shall be displayed 17 from the opening of bets or wagering and be continually 18 displayed until the wagering is closed. At least one video 19 screen in each wagering division shall display the amount of 20 money wagered on each horse involved in any trifecta pool. 21 SECTION 234. EXPERIMENTAL SIMULCASTINGS. <-- 22 THE STATE HARNESS RACING COMMISSION MAY, UPON REQUEST FROM A 23 LICENSED CORPORATION, GRANT PERMISSION ON AN EXPERIMENTAL BASIS 24 TO A FACILITY WHICH CONDUCTED LESS THAN 80 DAYS OF RACING PER 25 YEAR TO SIMULCAST INTRASTATE RACING. THE PERIOD OF EXPERIMENTAL 26 SIMULCASTING SHALL BE THROUGH NOVEMBER, 1984. SUCH SIMULCASTS 27 ARE TO BE OPERATED BY THE LICENSED CORPORATION AT THE RACE TRACK 28 ENCLOSURE WHERE A HORSE RACE MEETING IS BEING CONDUCTED DURING, 29 BETWEEN, BEFORE OR AFTER POSTED RACES FOR THAT RACING DAY. ALL 30 FORMS OF PARI-MUTUEL WAGERING AS DESCRIBED UNDER SECTION 221 19830H1177B3326 - 7 -
1 SHALL BE ALLOWED ON HORSE RACES TO BE TELEVISED BY SIMULCASTING. 2 THE STATE HARNESS RACING COMMISSION MAY PROMULGATE RULES OR 3 REGULATIONS TO REGULATE THE WAGERING AND THE OPERATION OF THESE 4 HORSE RACES. ALL MONEYS WAGERED BY PATRONS ON THESE HORSE RACES 5 SHALL BE COMPUTED IN THE AMOUNT OF MONEY WAGERED EACH RACING DAY 6 FOR PURPOSES OF TAXATION UNDER SECTION 222. 7 SECTION 3. (A) SECTION 1 SHALL TAKE EFFECT IMMEDIATELY. <-- 8 (B) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 120 DAYS. 9 SECTION 216. INTERSTATE SIMULCASTINGS OF HORSE RACES. 10 EACH COMMISSION MAY, UPON REQUEST BY ANY LICENSED 11 CORPORATION, GRANT PERMISSION FOR ELECTRONICALLY TELEVISED 12 SIMULCASTS OF HORSE RACES TO BE OPERATED BY THE LICENSED 13 CORPORATION AT THE RACE TRACK ENCLOSURE WHERE A HORSE RACE 14 MEETING IS BEING CONDUCTED DURING, BETWEEN, BEFORE OR AFTER 15 POSTED RACES FOR THAT RACING DAY. THE POSTED RACES FOR THAT 16 RACING DAY SHALL INCLUDE A MINIMUM OF EIGHT LIVE RACES, EXCEPT, 17 AT THOROUGHBRED TRACKS ON THE ONE DAY DESIGNATED AS BREEDERS' 18 CUP EVENT DAY, THERE SHALL BE A MINIMUM OF FIVE LIVE RACES. THE 19 SIMULCASTS SHALL BE LIMITED TO HORSE RACES CONDUCTED AT 20 FACILITIES OUTSIDE THIS COMMONWEALTH AND TELEVISED TO RACE TRACK 21 ENCLOSURES WITHIN THIS COMMONWEALTH. THE SIMULCASTS SHALL ALSO 22 BE LIMITED TO THOROUGHBRED RACES DESIGNATED AS GRADE I STAKES, 23 OR THE INTERNATIONAL EQUIVALENT THERETO, WITH PURSES OF AT LEAST 24 $100,000, AND STANDARD BRED RACES WITH PURSES OF AT LEAST 25 $100,000. CROSS SIMULCASTING OF THE AFOREMENTIONED RACES SHALL 26 BE PERMITTED AS LONG AS THE PARTICULAR RACE IS AVAILABLE TO ALL 27 RACE TRACKS IN THE COMMONWEALTH WHICH ARE OPERATING LIVE RACING 28 THAT DAY. ALL SIMULCASTS OF HORSE RACES FROM OUTSIDE THIS 29 COMMONWEALTH SHALL ALSO COMPLY WITH THE PROVISIONS OF THE 30 INTERSTATE HORSE RACING ACT OF 1978, 92 STAT. 1811, 15 USC 3001 19830H1177B3326 - 8 -
1 ET SEQ. ALL FORMS OF PARI-MUTUEL WAGERING AS DESCRIBED UNDER 2 SECTION 221 SHALL BE ALLOWED ON HORSE RACES TO BE TELEVISED BY 3 SIMULCASTING. EACH COMMISSION MAY PROMULGATE RULES OR 4 REGULATIONS TO REGULATE THE WAGERING AND THE OPERATION OF THESE 5 HORSE RACES. ALL MONEYS WAGERED BY PATRONS ON THESE HORSE RACES 6 SHALL BE COMPUTED IN THE AMOUNT OF MONEY WAGERED EACH RACING DAY 7 FOR PURPOSES OF TAXATION UNDER SECTION 222. 8 SECTION 4. THE ACT IS AMENDED BY ADDING SECTIONS TO READ: 9 SECTION 216.1. TELEVISION LIMITATION. 10 THE TELEVISING OF HORSE RACES CONDUCTED AT FACILITIES IN THIS 11 COMMONWEALTH SHALL BE BLACKED OUT WITHIN A 25-MILE RADIUS OF ANY 12 OTHER RACING FACILITY WHERE A HORSE RACE MEETING IS BEING 13 CONDUCTED ON THAT DAY. 14 SECTION 235. ADDITIONAL HARNESS RACING DATES. 15 WHENEVER A CORPORATION IS THE ONLY CORPORATION LICENSED AT A 16 FACILITY AND IT HAS BEEN GRANTED 150 HARNESS RACING DATES AT 17 THAT FACILITY AND THE 750 HARNESS RACING DATES AUTHORIZED IN 18 THIS ACT HAVE NOT BEEN ALLOCATED, UPON REQUEST THE STATE HARNESS 19 RACING COMMISSION MAY GRANT UP TO AN ADDITIONAL 50 HARNESS 20 RACING DATES FROM THE UNALLOCATED HARNESS RACING DATES TO THE 21 CORPORATION HAVING AN OWNERSHIP INTEREST AT THE FACILITY. BEFORE 22 THE STATE HORSE RACING COMMISSION MAY GRANT ANY ADDITIONAL 23 HARNESS RACING DATES, THE DEPARTMENT OF AGRICULTURE SHALL HAVE 24 GIVEN ITS APPROVAL. 25 SECTION 5. SECTION 2 OF THIS AMENDATORY ACT SHALL BE 26 RETROACTIVE TO JULY 1, 1984. 27 SECTION 3 6. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. <-- F3L04JLW/19830H1177B3326 - 9 -