THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ORIE, VOGEL, WAUGH, ALLOWAY, MENSCH AND D. WHITE, JANUARY 23, 2012

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, JANUARY 23, 2012  

AN ACT

Amending the act of December 17, 1981 (P.L.435, No.135),

entitled "An act providing for the regulation of pari-mutuel

thoroughbred horse racing and harness horse racing

activities; imposing certain taxes and providing for the

disposition of funds from pari-mutuel tickets," further

providing for the powers and duties of the commissions;

establishing the Office of Race Horse Integrity Unit;

providing for additional fees; further providing for existing

fees, taxes, fines and penalties and for funding by the

commissions; and making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 202(b) of the act of December 17, 1981

(P.L.435, No.135), known as the Race Horse Industry Reform Act,

is amended by adding paragraphs to read:

Section 202.  General powers of the commissions.

* * *

(b)  Without limiting the generality of the foregoing and in

addition to its other powers:

* * *

(6)  The commissions may charge annual license fees on

all licensees and impose an application fee for the issuance

of any license.

(7)  The commissions may charge a fee for each horse

claimed in a race.

(8)  The commissions may authorize the State Racing Fund

to accept moneys from any legitimate sources.

(9)  The commissions may require out of competition drug

testing and drug testing of horses not stabled at racetracks.

(10)  The commissions may license and regulate account

deposit wagering entities and online wagering companies doing

business in this Commonwealth.

(11)  The commissions may provide mediation services with

respect to live racing payments between racetracks and

horsemen's organizations in accordance with the prior

authority relating to backside improvement plans.

(12)  The commissions may provide for the duties of

laboratories conducting drug testing.

(13)  The commissions are authorized to enter into

interstate compacts relating to thresholds and sanctions for

drug testing programs and account deposit wagering

activities.

(14)  The commissions are authorized to engage in

marketing activities relating to horse racing in this

Commonwealth and all situations relating to the horse racing

industry.

(15)  The commissions may award matching grants for horse

racing rehabilitation and retirement centers and provide

oversight to ensure the proper use of the grants.

(16)  The commissions may grant waivers for the Statewide

minimum number of required racing days based on the best

interests of race horses and the industry.

* * *

Section 2.  The act is amended by adding a section to read:

Section 202.1.  Horse Racing Integrity Unit.

(a)  Establishment.--There is established within the Office

of Attorney General the Horse Racing Integrity Unit.

(b)  Powers and duties.--The unit shall have the powers and

duties to review and conduct investigations in connection with

all licenses issued under this act and any alleged violations of

this act.

(c)  Personnel.--

(1)  The Attorney General shall assign agents to

supervisory and other capacities in the unit as necessary.

All other personnel of the unit may be civilians.

(2)  Except as provided in paragraph (3), all personnel

shall continue in their employment with the unit with the

same pay scales, salaries, wages, seniority benefits, pension

rights and other incidents of employment.

(3)  The unit director, in consultation with the Attorney

General, shall determine which personnel transferred under

this section shall be retained as unit employees and which

personnel transferred under this section shall be replaced

within a six-month period after the appointment of the unit

director except employees covered under a current collective

bargaining agreement.

(d)  Employment requirements.--

(1)  Prospective employees of the unit shall submit an

application and a personal disclosure form to the unit

director which shall include a complete criminal history,

including convictions and current charges for all felonies

and misdemeanors.

(2)  Prospective employees shall be required to undergo

testing which detects the presence of illegal substances in

the body.

(3)  The unit director shall obtain fingerprints and

photographs for each prospective employee consistent with the

standards adopted by the Pennsylvania State Police.

(4)  The unit director shall verify the identification,

employment and education of each prospective employee,

including:

(i)  Legal name, including any alias, date of birth

and Social Security number.

(ii)  All educational institutions attended

regardless of graduation status.

(iii)  Places of residence for the past ten years.

(iv)  Employment history for the past 15 years.

(5)  The unit director shall not hire a prospective

employee if the prospective employee:

(i)  has been convicted of a crime that bears a close

relationship to the duties and responsibilities of the

position for which employment is sought;

(ii)  has been dismissed from other employment for

gross misconduct; or

(iii)  has intentionally made a false statement

concerning a material fact in connection with the

application to the unit director.

(6)  The unit director shall not employ a person unless

the requirements of paragraphs (1), (2), (3) and (4) have

been met.

(7)  The unit director shall:

(i)  Immediately refer any criminal matter involving

an employee to the Pennsylvania State Police.

(ii)  Develop a disciplinary process for an employee

charged with a crime or with gross misconduct.

(iii)  Immediately suspend from employment any

employee charged with a felony.

(iv)  Develop a process to discipline all other

instances of misconduct.

(8)  Disciplinary action shall be instituted promptly

against an employee who, while on or off duty, engages in

serious misconduct which may bring the Office of Attorney

General into disrepute.

(e)  Expenses and budget.--The expenses of the unit shall be

reimbursed by the Department of Revenue through the

implementation of appropriate fees on those licensed by the

commissions under this act and at levels which cover the annual

expenses incurred by the unit.

(f)  Annual report.--The unit shall prepare and submit an

annual itemized expense report and annual budget to the

department.

Section 3.  Section 204(b) of the act, amended July 3, 1984

(P.L.577, No.115), is amended to read:

Section 204.  Filing of information concerning stock transfers;

necessity for commissions' approval.

* * *

(b)  If, after the filing of any affidavit required to be

filed, there shall be any change in the status of any affiant

with respect to any of the matters set forth in subsection (a)

(1) of the affidavit filed, the affiant shall file with the

corporation with which his affidavit was so filed a new

affidavit, executed by him in duplicate, setting forth the

change of status [and], the corporation shall file one of these

affidavits with the appropriate commission and shall pay a fee

set by the commission for the costs of background investigations

and other costs.

* * *

Section 4.  Section 208(a) of the act, amended December 30,

1983 (P.L.400, No.93), is amended to read:

Section 208.  State admissions taxes.

(a)  Every corporation holding a thoroughbred horse race

meeting under this act shall collect, in addition to the

admission price of tickets sold or otherwise disposed of, for

each meeting held by the corporation, a tax [equivalent to 15%

of the admission price, or 15¢ whichever is greater]. In case of

failure to collect the tax, the tax shall be imposed upon the

corporation holding the race meeting. The tax shall be paid to

the Department of Revenue within ten days of collection. The

amounts collected shall be paid into the State Treasury to the

credit of the State Racing Fund. Before any corporation liable

to pay the tax shall hold any race meeting, or exercise any of

the powers conferred by this act, the corporation shall pay all

taxes due, and shall file a statement with the Department of

Revenue containing the name of the place and stating the time

when the races are to be held. Nothing in this section shall

apply to a race meeting conducted by any state, county or other

agricultural association. Retroactive to September 1, 1981 and

thereafter, the admission tax shall be decreased to a tax

equivalent to 10% of the admission price. Then on September 1,

1982 and thereafter, the admission tax shall be decreased to a

tax equivalent to 5% of the admission price.

* * *

Section 5.  Section 210(b) of the act, amended July 3, 1984

(P.L.577, No.115), is amended to read:

Section 210.  Shareholders.

* * *

(b)  It shall be the duty of each licensed corporation within

ten days after any transfer of stock comprising an interest of

5% or more in such licensee, to notify the appropriate

commission of the transfer and to pay a fee set by the

commission for the costs of background investigations and other

costs.

* * *

Section 6.  Section 214(a) of the act, amended May 16, 1986

(P.L.205, No.63), is amended to read:

Section 214.  Power of commissions to impose fines and

penalties.

(a)  In addition to their power to suspend or revoke licenses

granted by them, the commissions are authorized and empowered to

impose fines upon any corporation, association or person

participating in any way in any horse race meet at which pari-

mutuel wagering is conducted, other than as a patron and whether

licensed by the commissions or not, for a violation of any

provision of this act or the rules and regulations promulgated

by the commissions, not exceeding [$5,000] $25,000 for each

violation, which fines shall be paid into the State Treasury

through the Department of Revenue and credited to the General

Fund. Following exhaustion of any administrative remedies

promulgated by the commissions for such purpose, the action of

the commissions in imposing any monetary fine shall be subject

to appeal to the Commonwealth Court and as approved by that

court system, or if no court appeal is taken, then as imposed,

may be collected in an action of assumpsit.

* * *

Section 7.  Sections 218-A(c) and 302 of the act, amended or

added May 16, 1986 (P.L.205, No.63), are amended to read:

Section 218-A.  Wagering at nonprimary locations.

* * *

[(c)  The commissions shall jointly conduct an evaluation of

the use of telephone account wagering, including the use of

master accounts, transfer accounts, credit or debit cards, any

other form of electronic signal transmission and live

telecasting to or from areas open to the public not primary to

or contiguous with a racetrack. The evaluation shall consider

whether such activities are in the public interest and are

beneficial to racing and shall recommend, if such activities are

deemed desirable by the commissions, appropriate rules and

regulations for the conduct of such activities: Provided, That a

licensed corporation shall not be permitted to conduct pari-

mutuel wagering at any location which is within the primary

market area of another licensed corporation, as defined in

section 102 and section 218(e). The evaluation shall also

recommend whether any enlargement or modification to the laws

regulating such activities is necessary or desirable. In

performing the evaluation, the commissions shall study in detail

experimental activities authorized by the commissions, including

an analysis of the impact of conducting such activities at each

experimental site approved by the commissions. The evaluation is

to be completed by October 31, 1986, with copies of the

commissions' report being forwarded, within two weeks of that

date, to the Governor, the President pro tempore of the Senate,

the Speaker of the House, the Chairman of the Senate State

Government Committee and the Chairman of the State Government

Committee of the House of Representatives. The evaluation shall

include, but not be limited to, an investigation and study of

the following matters:

(1)  Which laws permit or prohibit the use of telephone

account wagering in coordination with live telecasting to

public locations and the utilization of transfer accounts,

master accounts, credit or debit cards or other forms of

electronic signal transmissions for pari-mutuel wagering at

such locations.

(2)  In situations where such activities occur at

premises licensed by the Liquor Control Board to serve

alcoholic beverages, whether such activities violate any

portion of the act of April 12, 1951 (P.L.90, No.21), known

as the "Liquor Code."

(3)  The financial viability of live telecasting to

public locations, together with the use of telephone account

wagering, transfer accounts, electronic signal transmissions,

or credit or debit card wagering, including the benefits or

disadvantages for the commissions, the licensed racing

corporation, horsemen and the general public.

(4)  The local and Statewide community, fiscal and social

impact of such wagering activities at public locations.

(5)  An analysis of the commissions' ability to properly

regulate and control such wagering at public locations in

order to protect the public and the integrity of the racing

industry.

(6)  The ability of the commissions to investigate the

background of individuals owning or having an interest in

premises upon which such wagering takes place.

(7)  Patron betting behavior and satisfaction or abuse of

telephone account wagering, transfer accounts, credit or

debit cards or other forms of electronic signal transmissions

for the purpose of pari-mutuel wagering.

(8)  What types of promotional activities have taken

place by the racing corporation or particular wagering sites

to encourage such wagering and what types of promotional

activities are proper and appropriate.

(9)  What types of reporting procedures and records have

been and should be required from the licensed racing

corporation and individual wagering sites so as to assure all

revenues are accounted for and winners names are filed with

the proper taxing authorities.

(10)  What minimum requirements with regard to physical

structures, facilities, equipment, security and public health

and safety are necessary and appropriate for locations at

which such wagering occurs.]

* * *

Section 302.  Establishment of the Pennsylvania Race Horse

Testing Program.

(a)  There is hereby established the Pennsylvania Race Horse

Testing Program. The program shall be administered by a

management committee composed of the two chairpersons of the

commissions, the Secretary of Agriculture and two persons

appointed by the Governor. One person appointed by the Governor

must be a doctor of veterinary medicine or a veterinary medical

doctor and a member of the faculty of a school of veterinary

medicine located within this Commonwealth and the other person

must be employed within the private sector and have a background

in biological and/or chemical laboratory management. The program

is placed in and made a part of the Department of Agriculture.

[All costs of the program shall be paid by the commissions.]

Subject to all provisions of the act of April 9, 1929 (P.L.177,

No.175), known as "The Administrative Code of 1929," that apply

to the department, the management committee shall appoint and

direct all personnel as necessary, establish a facility or

contract for the provision of testing services, acquire all

necessary equipment and supplies and adopt all necessary

procedures.

(b)  The purposes of the Pennsylvania Race Horse Testing

Program are to analyze samples for the presence in race horses

of any medication, to develop techniques, equipment and

procedures, to collect and test for the presence of medication

in race horses, to ascertain permitted tolerance levels or

therapeutic dose allowances for medication, to offer

consultation and advice to the public on all issues regarding

the medication of race horses and to conduct research in

medication issues involving race horses.

[(c)  In order to evaluate the effectiveness of testing

services performed by personnel of the Department of Agriculture

and determine whether the manner in which these services are

provided, the tests utilized and tolerance levels permitted

should be modified, the commissions shall equally fund a

contracted evaluation of existing laboratory services to be

conducted by a nongovernmental entity with documented expertise

to accurately evaluate existing laboratory services and

formulate recommendations for improvement of the testing

program. Upon review of the evaluation results, the department

may implement in consultation with the management committee a

program to improve laboratory services, including, if necessary

and appropriate, the selection of a contractor or contractors to

provide testing services. This study shall be completed on or

before January 1, 1987, and copies provided to the Governor, the

President pro tempore of the Senate, the Speaker of the House of

Representatives and the members of the State Government

Committees of the Senate and the House of Representatives within

15 working days.]

Section 8.  This act shall take effect in 60 days.