AN ACT

 

<-1Amending the act of December 17, 1981 (P.L.435, No.135),
2entitled "An act providing for the regulation of pari-mutuel
3thoroughbred horse racing and harness horse racing
4activities; imposing certain taxes and providing for the
5disposition of funds from pari-mutuel tickets," further 
6providing for definitions; repealing provisions related to 
7the State Horse Racing Commission and State Harness Racing 
8Commission; and providing for racing oversight and for the 
9cessation of the State Horse Racing Commission and the State 
10Harness Racing Commission.

<-11Amending the act of December 17, 1981 (P.L.435, No.135),
12entitled "An act providing for the regulation of pari-mutuel
13thoroughbred horse racing and harness horse racing
14activities; imposing certain taxes and providing for the
15disposition of funds from pari-mutuel tickets," further
16providing for definitions; repealing provisions related to
17the State Horse Racing Commission and State Harness Racing
18Commission; and providing for racing oversight, for pari-
19mutuel wagering licensing and for advance deposit wagering;
20further providing for mandatory requirements for medication
21rules, for establishment of Pennsylvania Race Horse Testing
22Program, for costs for enforcement of medication rules; and
23providing for the cessation of the State Horse Racing
24Commission and the State Harness Racing Commission.

25The General Assembly of the Commonwealth of Pennsylvania 
26hereby enacts as follows:

<-27Section 1. Section 102 of the act of December 17, 1981 
28(P.L.435, No.135), known as the Race Horse Industry Reform Act,
 

1amended or added May 16, 1986 (P.L.205, No.63) and November 30, 
21988 (P.L.1090, No.127), is amended to read:

3Section 102. Definitions.

4The following words and phrases when used in this act shall
5have, unless the context clearly indicates otherwise, the
6meanings given to them in this section:

7["Air mile." A unit of distance equal to 1,852 kilometers or
85,280 feet for purposes of this act.]

9"Board." The Pennsylvania Gaming Control Board.

10"Bureau." The Bureau of Horse Racing.

11"Business entity." A person, corporation, business trust,
12estate, limited liability partnership or other form of legal
13business entity.

14"Clean letter of credit." A letter of credit which is
15available to the beneficiary against presentation of only a
16draft or receipt.

17["Commissions." The State Horse Racing Commission and the
18State Harness Racing Commission.

19"Commissioners." The persons appointed by the Governor and
20confirmed by the Senate who serve on the State Horse Racing
21Commission or the State Harness Racing Commission and who
22administer the applicable provisions of this act.]

23"Electronic wagering." A legal wager placed by an individual
24in this Commonwealth related only to the outcome of a horse race
25taking place in this Commonwealth, placed or transmitted by an
26individual through telephone or any electronic media approved by
27the board and accepted by a licensed business entity or its
28approved off-track betting system located in this Commonwealth.

29"Evergreen clause." A term in a letter of credit providing
30for automatic renewal of the letter of credit.

1"Horse racing." Standardbred horse racing and thoroughbred
2horse racing.

3"Horseman's organization." A trade association which
4represents the majority of owners and trainers who own and race
5horses at a racetrack.

6"Irrevocable clean letter of credit." A clean letter of
7credit which cannot be canceled or amended unless there is an
8agreement to cancel or amend among all parties to the letter of
9credit.

10"Land mile." A unit of distance equal to 1,852 kilometers or
115,280 feet.

12"Licensed [corporations] business entity." The [corporations
13that have] business entity that has obtained a license from
14[either] the former State Horse Racing Commission [or the], the
15former State Harness Racing Commission or the board to conduct
16[thoroughbred or harness] horse race meetings [respectively]
17with pari-mutuel wagering.

18"Nonprimary location." Any facility in which pari-mutuel
19wagering is conducted pursuant to this act other than the
20primary racetrack location.

21["Nonprimary location statement." The written statement
22pursuant to this act submitted to the appropriate commission by
23a licensed corporation planning to establish a nonprimary
24location.]

25"Primary market area of a racetrack." The land area included
26in a circle drawn with the racetrack as the center and a radius
27of 35 land miles.

28"Racetrack." The physical facility where a licensed
29[corporation] business entity conducts thoroughbred or [harness]
30standardbred race meetings respectively with pari-mutuel

1wagering.

2"Racetrack enclosure." For purposes of this act, the term
3"racetrack enclosure," with respect to each licensed
4[corporation] business entity, shall be deemed to include at
5least one primary racetrack location at which horse [race]
6racing meetings authorized to be held by the licensed
7[corporation] business entities are conducted, and all primary,
8nonprimary, contiguous and noncontiguous locations of the
9licensed [corporation] business entity which are specifically
10approved by the [appropriate commission] board for conducting
11the pari-mutuel system of wagering on the results of horse
12[races] racing held at such meetings or [race] racing meetings
13conducted by another licensed [corporation] business entity or
14televised to such locations by simulcasting.

15"Secondary market area of a racetrack." The land area
16included in a circle drawn with the racetrack as the center and
17a radius of 50 land miles, not including the primary market area
18of the racetrack.

19"Simulcast." The transmission of live electronically
20televised video/audio races from the host racetrack to the race
21track receiving the television transmission.

22"Standardbred horse racing." A form of horse racing in which
23the horses participating are attached "in harness" to a sulky or
24other similar vehicle, at a specific gait, either a trot or
25pace.

26"Thoroughbred horse racing." The form of horse racing in
27which each participating horse is mounted by a jockey, is duly
28registered with The Jockey Club of New York and engages in horse
29racing on the flat, which may include a steeplechase or hurdle
30race.

1"Totalisator." A computer system used to pool wagers, record 
2sales, calculate payoffs and display wagering data on a display 
3device that is located at a pari-mutuel facility or nonprimary 
4location.

5Section 2. Chapter 2 of the act is repealed:

6[CHAPTER 2

7STATE HORSE RACING COMMISSION AND STATE HARNESS

8RACING COMMISSION

9Section 201. Establishment of the commissions.

10(a) The State Horse Racing Commission is hereby established
11as a departmental administrative commission within the
12Department of Agriculture. The commission shall have general
13jurisdiction over all pari-mutuel thoroughbred horse racing
14activities in the Commonwealth and the corporations engaged
15therein. For the purposes of this act, "thoroughbred horse
16racing" means that form of horse racing in which each
17participating horse is mounted by a jockey, is duly registered
18with the Jockey Club, New York, New York and engages in races on
19the flat. Thoroughbred horse racing may include a steeplechase
20or hurdle race. The commission shall consist of three members
21who shall be appointed by the Governor, by and with the advice
22and consent of the Senate. Each commissioner shall hold office
23for a term of three years and until a successor is qualified.

24(b) The State Harness Racing Commission is hereby
25established as a departmental administrative commission within
26the Department of Agriculture. The commission shall have general
27jurisdiction over all pari-mutuel harness racing activities in
28the Commonwealth and the corporations engaged therein. The
29commission shall consist of three members who shall be appointed
30by the Governor, by and with the advice and consent of the

1Senate. Each commissioner shall hold office for a term of three
2years and until a successor is qualified.

3(c) The commissioners shall be reimbursed for documented
4expenses incurred in the performance of their official duties.
5The commissioners shall be paid $150 per diem for performing
6their duties as directed by the Secretary of Agriculture. One of
7the commissioners for each commission shall be appointed by the
8Governor as chairperson. The commissioner appointed by the
9Governor as chairperson shall serve in that position at the
10pleasure of the Governor. The Secretary of Agriculture or his
11designee shall be a nonvoting ex officio member of the
12commissions. The commissions shall meet at least once a month
13and at other times as the Secretary of Agriculture or the
14commission chairperson deems necessary. Adequate public notice
15of the time and place of the meetings shall be given. A
16commissioner who fails to attend three consecutive meetings
17shall be subject to removal. A commissioner shall be excused
18from meetings due to illness or death of an immediate family
19member. All commissioners shall be licensed under the provisions
20of section 213.

21(d) Each commission shall engage an executive secretary,
22deputies, secretaries, officers and representatives as it may
23deem necessary, who shall serve during its pleasure. The
24commissions shall also engage other employees as they see fit
25and whose duties shall be prescribed by the commissions and
26whose compensation shall be fixed by the commissions within the
27appropriations available. Legal counsel for the commissions
28shall be appointed in accordance with the act of October 15,
291980 (P.L.950, No.164), known as the "Commonwealth Attorneys
30Act." Each commission shall be subject to the provisions of the

1act of April 9, 1929 (P.L.177, No.175), known as "The
2Administrative Code of 1929," as to classification and
3compensation for all its employees.

4(e) It shall be the duty of the executive secretary to keep
5a full and faithful record of the proceedings of the
6commissions, preserve at the general office of the commissions
7all books, maps, documents and papers entrusted to the executive
8secretary's care, prepare for service the papers and notices as
9may be required by the commissions and perform other duties as
10the commissions may prescribe. It shall be the duty of the
11executive secretary to keep, at the offices of the commissions,
12a docket setting forth the names of all stockholders in all
13corporations licensed under this act, the number of shares held
14by each stockholder and the date on which each shareholder
15acquired stock in the licensed corporation. The docket shall be
16open for public inspection. It shall be the duty of the
17executive secretary to appear before the Appropriations
18Committees of the Senate and the House of Representatives for
19budgetary review and recommendations.

20(f) The commissions or designated officers, employees or
21agents of the commissions shall have the power to administer
22oaths and examine witnesses and may issue subpoenas to compel
23attendance of witnesses and production of all relevant and
24material reports, books, papers, documents, correspondence and
25other evidence. The commissions shall, annually, make a full
26report to the Secretary of Agriculture of their proceedings for
27the preceding calendar year and suggestions and recommendations
28as they see fit. The commissions shall exercise their powers and
29duties in accordance with the provisions of "The Administrative
30Code of 1929."

1(g) The terms and termination dates of the terms of the
2three commissioners who constitute the State Horse Racing
3Commission under the act of December 11, 1967 (P.L.707, No.331),
4referred to as the Pennsylvania Thoroughbred Horse Racing Law,
5shall continue under this act. Any commissioner whose term has
6already expired on the effective date of this act and who has
7not been replaced by a new member or has not been confirmed for
8another term, shall continue in his or her present status until
9replaced by a new member or confirmed for another term.

10(h) The terms and termination dates of the terms of the
11three commissioners who constitute the State Harness Racing
12Commission under the act of December 22, 1959 (P.L.1978,
13No.728), referred to as the Pennsylvania Harness Racing Law,
14shall continue under this act. Any commissioner whose term has
15already expired on the effective date of this section and who
16has not been replaced by a new member or has not been confirmed
17for another term, shall continue in his or her present status
18until replaced by a new member or confirmed for another term.

19(i) All rules and regulations promulgated under the
20provisions of the Pennsylvania Thoroughbred Horse Racing Law and
21the Pennsylvania Harness Racing Law shall remain in effect
22except to the extent that they are in direct conflict with the
23provisions of this act. The commissions may amend, revise or
24alter these rules and regulations as they deem necessary.

25(j) All licenses issued under the provisions of section 11
26of the Pennsylvania Thoroughbred Horse Racing Law and under the
27provisions of section 9 of the Pennsylvania Harness Racing Law,
28shall remain in effect for the remainder of the term for which
29these licenses were issued. After these licenses have expired,
30all renewals or new licenses shall be issued under the

1provisions of this act.

2(k) All licenses issued to corporations under the provisions
3of section 7 of the Pennsylvania Thoroughbred Horse Racing Law
4and under the provisions of section 7 of the Pennsylvania
5Harness Racing Law, shall continue with the same force and
6effect and shall be governed by the provisions of section 209.

7Section 202. General powers of the commissions.

8(a) The State Horse Racing Commission shall have the power
9to supervise all thoroughbred horse race meetings at which pari-
10mutuel wagering is conducted. The State Harness Racing
11Commission shall have the power to supervise all harness horse
12racing meetings at which pari-mutuel wagering is conducted. The
13commissions may adopt rules and regulations to effect the
14purposes and provisions of this act.

15(b) Without limiting the generality of the foregoing and in
16addition to its other powers:

17(1) Each commission shall have power to fix a minimum
18charge for admission to horse race meetings at which pari-
19mutuel wagering is conducted, but the minimum charge shall
20not be less than 50¢ for general admission, exclusive of
21taxes. The commissions shall have power to fix the charge for
22admission of soldiers, sailors and marines, in uniform, at
23one-half of the amount fixed for general admission, whether
24or not the one-half of the amount fixed is less than the
25minimum prescribed therein.

26(2) Each commission shall at all times have in effect
27rules and regulations as required under Chapter 3 regarding
28medication rules and enforcement provisions.

29(3) The rules of the commissions shall also provide that
30all winning pari-mutuel tickets must be presented for payment

1before April 1 of the year following the year of their
2purchase and failure to present the ticket within the
3prescribed period of time shall constitute a waiver of the
4right to participate in the award. After April 1 of the year
5following, all licensed corporations will forward to the
6State Treasurer through the Department of Revenue for credit
7to the State Racing Fund all funds so held for the uncashed
8tickets. Where it is shown to the satisfaction of the
9appropriate commission and the Department of Revenue, through
10substantiated and recorded data, that the reason for the
11pari-mutuel ticket or tickets being outstanding and unclaimed
12is loss, misplacement or theft within the confines and
13control of the pari-mutuel department of any licensed
14corporation and it is shown to the satisfaction of the
15appropriate commission and the Department of Revenue that the
16pari-mutuel ticket or tickets in question have been cashed by
17the pari-mutuel department, the Department of Revenue, with
18the approval of the appropriate commission, may adjust and
19credit the licensed corporation's outstanding ticket account
20accordingly on March 31 of the year following the year of
21purchase or after a complete audit of the outstanding tickets
22accounts have been performed. The licensed corporation shall
23reimburse any employee who has been held personally
24accountable and paid for the lost, misplaced or stolen
25tickets.

26(4) The commissions may adopt a general promotion
27program to assist the licensed corporations in increasing
28their attendance and average daily handle. Any expenditures
29for a promotional program shall be authorized and approved in
30the same manner as other operational costs of the

1commissions.

2(5) In the event that a state bordering Pennsylvania
3enacts a wagering tax scheme that may place Pennsylvania
4horse race meetings at a competitive disadvantage in the
5purses that can be offered for horse races, a licensed
6corporation may petition the appropriate commission for an
7emergency financial grant to augment its purse structure. If
8the appropriate commission finds that the effect of the
9enacted wagering tax scheme of a bordering state is to place
10Pennsylvania horse race meetings at a competitive
11disadvantage in purse structure, the appropriate commission
12shall make an emergency financial grant to the petitioning
13licensed corporation for augmentation to its purse structure
14out of moneys that the commission has budgeted for this
15purpose; provided, however, that the Secretary of Agriculture
16and the Secretary of the Office of Budget and Administration
17have also agreed to the grant.

18(c) The State Harness Racing Commission shall have
19jurisdiction over and shall promulgate regulations as necessary
20for the proper administration of all racing conducted by a
21county agricultural society or an independent agricultural
22society, as provided for under section 5(1)(iii) and (iv) of the
23act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania
24Agricultural Fair Act."

25Section 203.

26(c) No corporation shall have the right to conduct any horse
27race meet except on obtaining a license from the appropriate
28commission and at the location or locations designated in its
29license or any amendment thereto or as approved at any time by
30the commission as the place or places at which it was proposed

1to conduct its business. This restriction shall not apply to any
2corporation whose racing plant or usefulness, in the discretion
3of the appropriate commissions, shall, for any reason beyond the
4control of the corporation, be totally destroyed or so
5substantially interfered with as to render same unfit for
6continued operation. Pending the rebuilding or restoration of
7its usefulness, or the making of the required repairs to the
8plant or the part destroyed or damaged, the commissions may
9license such corporation to conduct its horse race meetings at
10any other suitable location.

11Section 204. Filing of information concerning stock transfers;
12necessity for commissions' approval.

13(a) Whenever a transfer of stock comprising an interest of
145% or more in any licensed corporation, or comprising an
15interest of 5% or more in any corporation which leases to a
16licensed corporation the track facility at which it conducts
17pari-mutuel horse races or comprising an interest of 5% or more
18in any corporation which owns 25% or more of the stock of the
19licensed corporation shall be made, there shall be filed,
20simultaneously, with the corporation which issued such stock the
21following:

22(1) In duplicate, an affidavit executed by the
23transferee of the interest stating that he is to be the sole
24beneficial owner thereof, and whether or not he:

25(i) has been convicted of a crime involving moral
26turpitude;

27(ii) has been engaged in bookmaking or other forms
28of illegal gambling;

29(iii) has been found guilty of any fraud or
30misrepresentation in connection with racing or breeding;

1(iv) has been guilty of any violation or attempt to
2violate any law, rule or regulation of any racing
3jurisdiction, for which suspension from racing might be
4imposed in such jurisdiction; or

5(v) has violated any rule, regulation or order of
6the commissions.

7If the transferee of the interest is not, or is not to be,
8the sole beneficial owner, there shall be annexed to the
9affidavit of the transferee, and expressly stated in such
10affidavit, a true and complete copy of all terms of the
11agreement pursuant to which the interest in the corporation
12is to be held by the transferee, including a detailed
13statement of the interest of each person who is to have any
14interest therein.

15(2) In duplicate, an affidavit executed by each person
16for whom the interest is to be held by the transferee,
17setting forth whether or not the affiant:

18(i) has been convicted of a crime involving moral
19turpitude;

20(ii) has engaged in bookmaking or other forms of
21illegal gambling;

22(iii) has been found guilty of any fraud or
23misrepresentation in connection with racing or breeding;

24(iv) has been guilty of any violation or attempt to
25violate any law, rule or regulation of any racing
26jurisdiction, for which suspension from racing might be
27imposed in such jurisdiction; or

28(v) has violated any rule, regulation or order of
29the commissions.

30To each of the affidavits shall be annexed, and expressly

1stated in such affidavit, a true and complete copy of all the
2terms of the agreement pursuant to which the interest is to
3be held by the transferee, including a detailed statement of
4the interest of each person who is to have any interest
5therein. The corporation shall file with the appropriate
6commission one of each duplicate affidavits.

7(b) If, after the filing of any affidavit required to be
8filed, there shall be any change in the status of any affiant
9with respect to any of the matters set forth in subsection (a)
10(1) of the affidavit filed, the affiant shall file with the
11corporation with which his affidavit was so filed a new
12affidavit, executed by him in duplicate, setting forth the
13change of status and the corporation shall file one of these
14affidavits with the appropriate commission.

15(c) Whenever any change shall be made in the amount, nature
16or of the interest of any person having an interest of 5% or
17more in any corporation, or any new interest of 5% or more shall
18be created therein, without a transfer as provided, the record
19owner of the stock, and each person whose interest has been
20attempted to be changed or created, shall file with the
21corporation which issued the stock, in duplicate, affidavits as
22provided by subsection (a)(1) and (2), except that these
23affidavits need not include the matter referred to in subsection
24(a) unless then required pursuant to subsection (b) and one copy
25thereof shall be filed by the corporation with the appropriate
26commission.

27(d) If the appropriate commission determines that it is
28inconsistent with the public interest, convenience, or
29necessity, or with the best interest of racing generally, that
30any person continue to be a stockholder of record, or the

1beneficial owner of any interest in stock standing in the name
2of another in any licensed corporation or of any corporation
3which leases to such licensed corporation the track at which it
4conducts pari-mutuel horse racing or which owned 25% or more of
5the stock of the licensee, the appropriate commission shall have
6full power and authority to order each stockholder or beneficial
7owner to dispose of his stock or interest within a period of
8time to be specified by the appropriate commission, which period
9the appropriate commission shall have full power to extend.

10(e) If the commissions shall make any order or direction as
11provided in subsection (d), the person aggrieved shall be given
12notice of the time and place of a hearing before the appropriate
13commission, at which time the appropriate commission will hear
14the person in reference thereto.

15Section 205. Number of horse racing corporations.

16(a) No more than six corporations shall be licensed by the
17State Horse Racing Commission to conduct a pari-mutuel meet or
18meets. No corporation licensed under this act to conduct harness
19racing with pari-mutuel wagering or under the act of December
2022, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
21Harness Racing Law, shall be licensed to conduct thoroughbred
22horse racing with pari-mutuel wagering.

23(b) No more than five corporations shall be licensed by the
24State Harness Racing Commission to conduct a pari-mutuel meet or
25meets. No corporation licensed under this act to conduct
26thoroughbred horse racing with pari-mutuel wagering or under the
27act of December 11, 1967 (P.L.707, No.331), referred to as the
28Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to
29conduct harness horse racing with pari-mutuel wagering.

30Section 206. Responsibilities of the Department of Revenue.

1The Department of Revenue is charged with the financial
2administration of pari-mutuel wagering under this act, as
3supplemented by the rules and regulations of the commissions.
4The Department of Revenue shall have authority to prescribe the
5forms and the system of accounting to be employed, and through
6its representatives shall, at all times, have power of access
7to, and examination of, any equipment relating to such wagering.

8Section 207. Allocation of racing days.

9(a) Up to 125 but no less than 25 racing days shall be
10allocated to each licensed corporation conducting thoroughbred
11horse race meetings in any calendar year; except, that upon
12request, the State Horse Racing Commission may grant up to an
13additional 25 racing days over the 125 days to a licensed
14corporation in each calendar year, if racing meet schedules can
15accommodate these extra days. Whenever two or more corporations
16licensed to conduct racing at the same facility apply to the
17State Horse Racing Commission for an allocation of racing days
18at the same facility, the commission shall allocate the racing
19days in the following manner:

20(1) If there is an agreement between the licensed
21corporations as to the allocation of racing days then as
22provided for therein.

23(2) If there is no agreement between the licensed
24corporations as to the allocation of racing days, then
25equally between them.

26(b) No more than 125 racing days shall be allocated to each
27licensed corporation conducting harness horse race meetings in
28any calendar year. Every corporation shall hold its license
29under the provisions of section 209. The State Harness Racing
30Commission shall allocate the racing days in accordance with the

1following guidelines:

2(1) A licensed corporation that has an ownership
3interest in the facility at which the racing days are to be
4conducted shall be granted up to 125 racing days in any
5calendar year upon request to the State Harness Racing
6Commission. The State Harness Racing Commission shall grant
7all racing days requested by licensed corporations described
8in this paragraph before any other racing days are granted to
9any other licensed corporation that desires to conduct a meet
10at the same facility owned in part or in whole by a licensed
11corporation that also desires to conduct a meet there.

12(2) Whenever one or more licensed corporations that have
13an ownership interest in the facility at which the racing
14days are to be conducted apply to the State Harness Racing
15Commission for an allocation of racing days, the State
16Harness Racing Commission shall allocate an equal number of
17racing days to each licensed corporation or to each licensed
18corporation based upon an agreement between the licensed
19corporations as to the allocation of racing days.

20(3) Upon request the State Harness Racing Commission may
21grant up to an additional 25 racing days over the 125 racing
22days to a licensed corporation in each calendar year, and the
23commission may grant up to 50 additional days of racing if
24that corporation is the only corporation operating at the
25facility, if racing meet schedules can accommodate these
26extra racing days.

27(4) For purposes of this section, an ownership interest
28shall mean that a licensed corporation directly or through a
29parent or subsidiary has at least 35% equity interest in the
30track facility at which it conducts harness horse race

1meetings or is the primary tenant at such facility. For
2purposes of this subsection, a primary tenant shall be that
3licensed corporation, if any, which is a tenant conducting
4horse race meetings at a track facility at which no licensed
5corporation conducting horse race meetings has directly or
6through a parent or subsidiary at least a 35% equity interest
7in such facility, and if there is more than one such tenant
8at any such facility during the year prior to the year for
9which dates are requested, then among or between such tenants
10the primary tenant, if any, shall be designated by agreement
11among or between those licensed corporations which propose to
12conduct horse race meetings at the said track facility during
13the year for which dates are requested.

14(c) The commissions shall certify to the Secretary of the
15Department of Revenue within 20 days after the allocation of
16racing days to licensed corporations the following information:

17(1) the names and addresses of the corporations;

18(2) the names and addresses of the presidents and
19general managers of the corporations;

20(3) the names and locations of the facilities where the
21racing days are to be conducted;

22(4) the number of racing days allocated to each
23corporation; and

24(5) a numbered list of each racing day assigned to each
25calendar day of the year for the purposes of taxation.

26(d) If a racing day is cancelled by a licensed corporation
27for reasons beyond its control, the appropriate commission shall
28grant the licensed corporation the right to conduct that racing
29day in the same or the next ensuing calendar year, if schedules
30permit. The racing day for purposes of taxation under section

1222 shall be at the lowest tax rate at which the licensed
2corporation conducted a racing day during that year.

3Section 208. State admissions taxes.

4(a) Every corporation holding a thoroughbred horse race
5meeting under this act shall collect, in addition to the
6admission price of tickets sold or otherwise disposed of, for
7each meeting held by the corporation, a tax equivalent to 15% of
8the admission price, or 15¢ whichever is greater. In case of
9failure to collect the tax, the tax shall be imposed upon the
10corporation holding the race meeting. The tax shall be paid to
11the Department of Revenue within ten days of collection. The
12amounts collected shall be paid into the State Treasury to the
13credit of the State Racing Fund. Before any corporation liable
14to pay the tax shall hold any race meeting, or exercise any of
15the powers conferred by this act, the corporation shall pay all
16taxes due, and shall file a statement with the Department of
17Revenue containing the name of the place and stating the time
18when the races are to be held. Nothing in this section shall
19apply to a race meeting conducted by any state, county or other
20agricultural association. Retroactive to September 1, 1981 and
21thereafter, the admission tax shall be decreased to a tax
22equivalent to 10% of the admission price. Then on September 1,
231982 and thereafter, the admission tax shall be decreased to a
24tax equivalent to 5% of the admission price.

25(b) Every corporation holding a harness horse race meeting
26shall collect, in addition to the admission price of tickets
27sold or otherwise disposed of, for each such meeting held by the
28corporation, a tax equivalent to 5% of the admission price. In
29case of failure to collect the tax, the tax shall be imposed
30upon the corporation holding the race meeting. The tax shall be

1paid to the Department of Revenue within ten days after the
2close of each race meeting. The amounts collected shall be paid
3into the State Treasury to the credit of the State Racing Fund.
4Before any corporation liable to pay the tax shall hold any race
5meeting, or exercise any of the powers conferred by this act,
6the corporation shall pay all taxes due and file a statement
7with the Department of Revenue containing the name of the place
8and stating the time when the races are to be held. Nothing in
9this section shall apply to a race meeting conducted by any
10state, county or other agricultural association.

11(c) The Department of Revenue shall have the power to
12examine the books and records of the corporation conducting any
13horse race meeting and may hear testimony and take proofs and
14material for its information, or from any other data which shall
15be satisfactory to it. The Department of Revenue may order and
16state an account for the tax due the State, together with the
17expense of such examination. A penalty of 5% and interest at the
18rate of 1% per month from the due date to the date of payment of
19the tax shall be payable in case any tax imposed by this section
20is not paid when due.

21Section 209. Licenses for horse race meetings.

22(a) Any corporation desiring to conduct horse race meetings
23at which pari-mutuel wagering shall be permitted may apply to
24the appropriate commission for a license. The license gives its
25holder the privilege to conduct horse race meetings at which
26pari-mutuel wagering is permitted. The license does not give its
27holder a property right. If, in the judgment of the appropriate
28commission, the public interest, convenience or necessity will
29be served and a proper case for the issuance of the license is
30shown, the appropriate commission may issue the license. The

1license shall remain in effect so long as the licensed
2corporation complies with all conditions, rules and regulations
3and provisions of this act. A commission may revoke or suspend
4the license of any corporation, if the commission finds by a
5preponderance of the evidence that the corporation, its
6officers, employees or agents, has not complied with the
7conditions, rules, regulations and provisions of this act and
8that it would be in the public interest, convenience or
9necessity to revoke or suspend the license. A license is not
10transferable.

11(b) Every license shall be issued upon the following
12conditions:

13(1) A horse race meeting at which pari-mutuel wagering
14is conducted is subject to the supervision of and to the
15reasonable rules and regulations prescribed by the
16appropriate commission.

17(2) Pari-mutuel wagering conducted is also subject to
18the supervision of and to the reasonable regulations
19prescribed by the Department of Revenue. Any license may also
20be issued upon any other condition that the appropriate
21commission determines to be necessary or desirable to insure
22that the public interest, convenience or necessity is served.

23(3) The corporation can prove by a preponderance of the
24evidence that it has obtained the use of a facility to
25conduct horse race meetings. The proof may be demonstrated by
26documentation of an ownership interest in the facility or by
27a written lease for use of the facility. For purposes of this
28paragraph, an ownership interest shall mean that a licensed
29corporation directly or through a parent or subsidiary has at
30least a 35% equity interest in the track facility at which it

1conducts horse race meetings or is the primary tenant at such
2facility. For purposes of this paragraph, a primary tenant
3shall be that licensed corporation, if any, which is a tenant
4conducting horse racing meetings at a track facility at which
5no licensed corporation conducting horse race meetings has
6directly or through a parent or subsidiary at least a 35%
7equity interest in such facility, and if there is more than
8one such tenant at any such facility during the year prior to
9the year for which dates are requested, then among or between
10such tenants the primary tenant, if any, shall be designated
11by agreement among or between those licensed corporations
12which propose to conduct horse race meetings at the said
13track facility during the year for which dates are requested.

14(4) The corporation posts, in favor of the appropriate
15commission, a bond or irrevocable letter of credit in an
16amount equal to the sum of the corporation's average weekly
17payment, during active racing, into the State Racing Fund, as
18determined by the appropriate commission on the basis of the
19immediately preceding year, during the year for which dates
20are requested.

21(5) The licensed corporation prints in its racing
22programs the procedure for filing a complaint with the
23appropriate commission.

24(c) Applications for licenses shall be in the form
25prescribed by the appropriate commission and shall contain
26information, material or evidence as the appropriate commission
27may require. The term "racing week" shall include Sunday at the
28discretion of the licensed corporation.

29(d) In considering an application for a license to a
30corporation, the commissions may give consideration to the

1number of licenses already granted. No license shall be granted
2to any track located within ten miles of a State, county or
3other political subdivision fair conducting horse racing unless
4the association, corporation, society, political subdivision or
5State agency conducting the fair shall affirmatively waive
6objection to the issuance of the license for dates within the
7period.

8(e) The commissions may refuse to grant, may revoke, or may
9suspend a license to a corporation, if it shall determine that:

10(1) Any officer, director, member or stockholder of the
11corporation applying for a license or of any corporation
12which owns stock in or shares in the profits, or participates
13in the management of the affairs of the applicant, or which
14leases to the applicant the track where it shall operate:

15(i) has been convicted of a crime involving moral
16turpitude;

17(ii) has engaged in bookmaking or other forms of
18illegal gambling;

19(iii) has been found guilty of any fraud or
20misrepresentation in connection with racing or breeding;

21(iv) has been guilty of any violation or attempt to
22violate any law, rule or regulation of any racing
23jurisdiction, for which suspension from racing might be
24imposed in such jurisdiction; or

25(v) has violated any rule, regulation or order of
26the commissions.

27(2) The experience, character or fitness of any officer,
28director or stockholder of any of the corporations is such
29that the participation of the person in horse racing or
30related activities would be inconsistent with the public

1interest, convenience or necessity or with the best interests
2of racing. If the commission determines that the interest of
3any stockholder referred to in this paragraph or in paragraph
4(1) is insufficient to affect adversely the conduct of pari-
5mutuel horse racing by the corporation in accordance with the
6provisions of this act, the commissions may disregard the
7interest in determining whether or not to grant a license to
8the corporation.

9(3) The applicant is not the owner or the lessee of the
10track at which it will conduct pari-mutuel horse racing under
11the license applied for, or that any person, firm,
12association or corporation other than the applicant shares,
13or will share, in the profits of the applicant, other than by
14dividends as a stockholder, or participates, or will
15participate in the management of the affairs of the
16applicant.

17(4) The corporation does not have the use of a facility
18to conduct horse race meetings. Such use must be proved by a
19preponderance of the evidence. The proof may be demonstrated
20by documentation of an ownership interest in the facility or
21by a written lease for use of the facility.

22(5) A licensed corporation does not have proof of a
23written lease of a facility to conduct horse race meetings.
24Under this paragraph, the appropriate commission may suspend
25a license for a period of two years. After the expiration of
26the suspension, the appropriate commission may then revoke
27the license, if the licensed corporation has failed to
28contract for a facility at which to conduct horse race
29meetings.

30(6) A licensed corporation has commingled horsemen's

1funds in violation of section 235(c) or has refused to place
2on deposit a letter of credit under section 236.

3(f) The commissions shall also have power to refuse to
4grant, revoke or suspend a license:

5(1) To any corporation, the charter or certificate of
6incorporation of which shall fail to contain a provision
7requiring any stockholder, upon written demand of the
8corporation, to sell his stock to the corporation at a price
9to be fixed by the appropriate commission, provided the
10demand be made pursuant to written direction of the
11appropriate commission and from the date of the making of the
12demand prohibiting the transfer of the certificate of stock
13except to the corporation.

14(2) To any corporation which, having been a licensee,
15has failed, in the opinion of the appropriate commission, to
16properly maintain its track and plant in good condition or
17has failed to make adequate provision for rehabilitation and
18capital improvements to its track and plant.

19(g) Pending final determination of any question under this
20section, the commissions may issue a temporary license upon such
21terms and conditions as they see fit to effectuate the
22provisions of this act.

23(h) The commissions shall have power to direct that every
24certificate of stock of a licensed corporation shall bear a
25legend, plainly and prominently imprinted upon the face of the
26certificate, reading: "This certificate of stock is transferable
27only subject to the provisions of the 'Race Horse Industry
28Reform Act'." The provisions of this subsection shall not apply
29to stock heretofore issued by a licensed corporation under the
30provisions of the act of December 11, 1967 (P.L.707, No.331), as

1amended, and referred to as the Pennsylvania Thoroughbred Horse
2Racing Law or of the act of December 22, 1959 (P.L.1978,
3No.728), as amended, and referred to as the Pennsylvania Harness
4Racing Law.

5Section 210. Shareholders.

6(a) Each licensed corporation shall, once a year, provide
7the appropriate commission with a complete list of all its
8shareholders, indicating the number of shares by each
9shareholder.

10(b) It shall be the duty of each licensed corporation within
11ten days after any transfer of stock comprising an interest of
125% or more in such licensee, to notify the appropriate
13commission of the transfer.

14(c) Each certificate of stock issued by a licensed
15corporation to a shareholder having a 5% or greater interest
16shall have noted on the face thereof that the person whose name
17is indicated as the owner of such shares of stock by the
18certificate is the sole and absolute owner, and that he is not
19holding such shares of stock or any portion of such shares of
20stock represented by the certificate in trust for any person,
21partnership, firm or corporation who or which is prohibited from
22owning such shares of stock. If any of such shares of stock
23represented by a certificate of stock are held subject to the
24terms of either an inter vivos or testamentary trust for the
25benefit of any person who could lawfully own such stock in his
26own name, the fact shall be noted on the face of the certificate
27and a copy of the instrument which created the trust shall be
28attached. A duplicate copy of the instrument which created the
29trust shall be filed with the appropriate commission.

30(d) No property rights shall exist in any shares of stock of

1any licensed corporation which are held in trust contrary to the
2provisions of this section and the same shall be forfeited to
3the Commonwealth after reasonable notice and upon hearing and
4proof thereof in any suit instituted by the Attorney General of
5Pennsylvania. Upon it being established that the stock is
6subject to forfeiture by legal adjudication, the appropriate
7commission shall sell the forfeited stock at public sale, upon
8proper notice, to the highest bidder. The proceeds from the sale
9shall be deposited in the General Fund of the Commonwealth of
10Pennsylvania.

11(e) As used in this section, the term "licensed corporation"
12shall include any licensed corporation as defined in section 102
13and also any firm, association or corporation which owns or
14leases to any licensed association or corporation a race track
15at which pari-mutuel racing is conducted, or any firm,
16association or corporation which participates in the management
17of any such licensed corporation.

18Section 211. Prohibition of interest by public officers, public
19employees and party officers in pari-mutuel racing
20activities.

21(a) No public officer, public employee or party officer
22shall:

23(1) hold any license to conduct a pari-mutuel meet from
24the commissions;

25(2) own or hold, directly or indirectly, any proprietary
26interest, stock or obligation of any firm, association or
27corporation:

28(i) which is licensed by the commissions to conduct
29pari-mutuel racing;

30(ii) which is licensed to conduct its occupation,

1trade or business at race tracks at which pari-mutuel
2race meets are conducted;

3(iii) which owns or leases to any licensed
4association or corporation a race track at which pari-
5mutuel racing is conducted; or

6(iv) which participates in the management of any
7licensed corporation conducting pari-mutuel racing; and

8(3) hold any office or employment with any firm,
9association or corporation specified in paragraph (2); or

10(4) sell or be a member of a firm or own 10% or more of
11the stock of any corporation which sells any goods or
12services to any firm, association or corporation specified in
13paragraph (2).

14The provisions of paragraph (3) shall not apply to a public
15employee other than a police officer or paid employee of a
16police department, sheriff's office, district attorney's office
17or other law enforcement agency so long as such employment of
18employees of a political subdivision may be prohibited by
19ordinance, resolution or local law.

20(b) A knowing and willful violation of this section shall be
21cause for removal from public office, public employment or party
22office. In any such case, the public officer, public employee or
23party officer, violating this section, shall be removed from
24office by appropriate authority having the power of removal.

25(c) The following words and phrases when used in this act
26shall have, unless the context clearly indicates otherwise, the
27meanings given to them in this section:

28"Party officer." The following members or officers of any
29political party:

30(1) a member of a national committee;

1(2) a chairman, vice-chairman, secretary, treasurer or
2counsel of a State committee or member of the executive
3committee of a State committee;

4(3) a county chairman, vice-chairman, counsel, secretary
5or treasurer of a county committee; or

6(4) a city chairman, vice-chairman, counsel, secretary
7or treasurer of a city committee.

8"Public employee." Every person employed by the Commonwealth
9or any political subdivision thereof.

10"Public officer." Every person elected to any public office
11of the Commonwealth or any political subdivision thereof.

12(d) The commissions shall have the power to refuse to grant
13or to revoke or suspend a license of any firm, association or
14corporation which aids or knowingly permits or conspires to
15permit any public officer, public employee or party officer to
16acquire or retain any interest prohibited by this section.

17(e) The provisions of this section shall allow any person
18other than members, employees or appointees of the commissions
19to own and to be licensed to race a horse at any licensed race
20track.

21Section 212. Officials at horse race meetings.

22(a) At all thoroughbred horse race meetings licensed by the
23State Horse Racing Commission, qualified judges and starters
24shall be approved by the commission. These officials shall
25enforce the rules and regulations of the State Horse Racing
26Commission and shall render written reports of the activities
27and conduct of such race meetings to the State Horse Racing
28Commission. The compensation of these judges and starters shall
29be paid by the corporation conducting the race meeting.

30(b) At all harness race meetings licensed by the State

1Harness Racing Commission, qualified judges and starters shall
2be approved by the commission. No person shall be approved as a
3judge or starter unless he is licensed by the United States
4Trotting Association as a duly qualified pari-mutuel race
5meeting official. The officials shall enforce the rules and
6regulations of the State Harness Racing Commission and shall
7render regular written reports of the activities and conduct of
8the race meetings to the State Harness Racing Commission. The
9compensation of the presiding judge and two associate judges at
10each race track shall be fixed and paid by the State Harness
11Racing Commission. The commission shall adopt a selection
12process to approve the appointment of these officials. The
13licensed corporations shall participate in this selection
14process for approval of these officials.

15Section 213. Licenses for commissioners, employees and
16participants at horse race meetings.

17(a) Each commission shall license trainers, jockeys,
18drivers, persons participating in thoroughbred and harness horse
19race meetings, horse owners and all other persons and vendors
20exercising their occupation or employed at thoroughbred and
21harness horse race meetings. The license gives its holder a
22privilege to engage in the specified activity, but the license
23does not give its holder a property right. Licenses are not
24transferable. Each commission shall fix the license fees to be
25paid by persons or corporations so licensed; provided, however,
26that such occupational license fees shall not exceed $100. All
27fees shall be paid to the commissions and by them paid into the
28State Treasury through the Department of Revenue and credited to
29the State Racing Fund. The application shall be in the form and
30contain the information as each commission may require.

1Applicants must have their fingerprints taken or have
2fingerprint records on file with the respective commission, the
3Federal Bureau of Investigation, the State Police or any other
4organization recognized by the respective commission as part of
5the background investigation. Each commission may exempt
6applicants from the fingerprint requirement for positions not
7related to the care or training of horses, racing, wagering,
8security or the management operations of the racing corporation
9or racetrack. All licenses shall be issued for three-year terms
10and shall be automatically renewed, upon payment of the required
11fee, unless subsection (f) applies. Each commission may
12establish a temporary license and fee valid for four months
13within a twelve-month period. No applicant, however, may receive
14more than one temporary license within 12 months of the issuance
15of his or her preceding temporary license. The commissions may
16also stagger the termination dates and renewal dates of the
17licenses, in order to process and issue the licenses in an
18orderly manner that provides for approximately one-third of the
19licenses to be renewed each year. The commissions shall fix the
20manner by which licenses are processed and issued by rule or
21regulation.

22(b) All commissioners and all employees, agents and
23representatives of the commissions shall be licensed under this
24act. There shall be no fee for this license. The commissions
25shall fix by rule or regulation the manner in which these
26licenses under this subsection shall be processed and issued.

27(c) If the commissions find that the experience, character
28and general fitness of the applicant are such that the
29participation of the person in horse race meets is consistent
30with the public interest, convenience and necessity, and with

1the best interests of racing generally in conformity with the
2purposes of this act, it may grant a license.

3(d) The commissions may refuse to issue a license under this
4section, if they shall find that the applicant:

5(1) Has been convicted of a crime involving moral
6turpitude.

7(2) Has engaged in bookmaking or other form of illegal
8gambling.

9(3) Has been found guilty of any fraud or
10misrepresentation in connection with racing or breeding.

11(4) Has been found guilty of any violation or attempt to
12violate any law, rule or regulation of racing in any
13jurisdiction, for which suspension from racing might be
14imposed in that jurisdiction.

15(5) Has violated any rule, regulation or order of the
16commissions.

17(d.1) The commissions shall refuse to issue a license under
18this section if they shall find that the applicant has been
19convicted of an offense relating to fixing races. This
20subsection shall not apply if the conviction is overturned on
21appeal under the laws of the jurisdiction of the original
22finding.

23(e) Each commission shall have the right to inspect all
24contracts between licensed corporations and vendors for goods
25and services. Each commission shall require by rule or
26regulation that vendors disclose to the appropriate commission
27all principal officers and a description of their interests in
28the vendors' business. Failure to properly disclose this
29information shall constitute grounds to deny, to revoke or to
30suspend any vendor's license issued under the provisions of this

1act.

2(f) The commissions may suspend, refuse to renew or revoke a
3license issued under this section, if it shall determine that:

4(1) The applicant or licensee:

5(i) has been convicted of a crime involving moral
6turpitude;

7(ii) has engaged in bookmaking or other form of
8illegal gambling;

9(iii) has been found guilty of any fraud in
10connection with racing or breeding;

11(iv) has been guilty of any violation or attempt to
12violate any law, rule or regulation of any racing
13jurisdiction for which suspension from racing might be
14imposed in that jurisdiction;

15(v) has violated any rule, regulation or order of
16the commissions; or

17(vi) has been convicted of a felony offense related
18to the use, possession or sale of drugs or alcohol.

19(2) That the experience, character or general fitness of
20any applicant or licensee is such that the participation of
21the person in horse racing or related activities would be
22inconsistent with the public interest, convenience or
23necessity or with the best interests of racing.

24(f.1) The commissions shall suspend, refuse to renew or
25revoke a license issued under this section if it shall determine
26that the applicant or licensee has been convicted of an offense
27related to fixing races unless the conviction has been
28overturned on appeal under the laws of the jurisdiction of the
29original finding.

30(g) Pending final determination of any question under this

1section, the commissions may issue a temporary license upon such
2terms and conditions as they may deem necessary or proper to
3effectuate the provisions of this act.

4(h) The commissions may suspend a license under subsection
5(f) pending a hearing on the matter. The hearing must take place
6within ten days of the suspension.

7(i) The commissions shall not grant licenses to citizens of
8states that do not grant licenses to citizens of this
9Commonwealth on the basis of in-state preference.

10Section 214. Power of commissions to impose fines and
11penalties.

12(a) In addition to their power to suspend or revoke licenses
13granted by them, the commissions are authorized and empowered to
14impose fines upon any corporation, association or person
15participating in any way in any horse race meet at which pari-
16mutuel wagering is conducted, other than as a patron and whether
17licensed by the commissions or not, for a violation of any
18provision of this act or the rules and regulations promulgated
19by the commissions, not exceeding $5,000 for each violation,
20which fines shall be paid into the State Treasury through the
21Department of Revenue and credited to the General Fund.
22Following exhaustion of any administrative remedies promulgated
23by the commissions for such purpose, the action of the
24commissions in imposing any monetary fine shall be subject to
25appeal to the Commonwealth Court and as approved by that court
26system, or if no court appeal is taken, then as imposed, may be
27collected in an action of assumpsit.

28(b) No officer or employee of a licensed corporation or
29their spouses, parents, fathers-in-law, mothers-in-law, sons,
30daughters, sons-in-law or daughters-in-law shall have any direct

1or indirect interest in a race horse that is participating in a
2race at a meet at which such person or heretofore-mentioned
3relative holds any interest in the licensed corporation
4conducting the meet and/or the track facility. An officer or
5employee of a licensed corporation or their spouses, parents,
6fathers-in-law, mothers-in-law, sons, daughters, sons-in-law or
7daughters-in-law may have an interest in a race horse and enter
8it at meets that are conducted by licensed corporations or at
9race tracks in which such a person or heretofore-mentioned
10relative holds no direct or indirect interest. Each commission
11shall impose a fine or penalty upon any person for violation of
12this subsection as provided for under subsection (a). For
13purposes of this subsection an interest shall not include:

14(1) any breeder's fund award as a result of a horse
15being a registered Pennsylvania-bred thoroughbred horse under
16the provisions of section 223; and

17(2) any interest in a licensed corporation or track
18facility that was held by a person, partnership, association
19or corporation on or before January 1, 1988.

20Section 215. Security personnel; powers and duties; penalty.

21(a) The commissions and any licensed corporations are
22authorized and empowered to employ persons as security
23personnel. These persons shall possess the powers and duties of
24a peace officer with respect to the enforcement of the criminal
25laws of the Commonwealth within the race meeting grounds or
26enclosure. The designated persons are also authorized to
27interrogate and eject from the race meeting grounds or enclosure
28any persons suspected of violating any rule or regulation
29promulgated by the commissions. The commissions may refuse
30admission to and eject from enclosure of the race track operated

1by any licensed corporation, any person whose presence there is,
2in the judgment of the commission, inconsistent with the orderly
3or proper conduct of a race meeting or whose presence or conduct
4is deemed detrimental to the best interest of horse racing. The
5action of the commissions in refusing any person admission, or
6ejecting him from, a race meeting ground or enclosure shall not
7be because of the race, creed, color, sex, national origin or
8religion of that person and shall be reviewable by the
9Commonwealth Court.

10(b) Except as provided for in subsections (c) and (d), any
11licensed corporation may refuse admission to and eject from the
12enclosure of the race track operated by any association any
13person except that no person shall be refused admission or be
14ejected because of the race, color, creed, sex, national origin
15or religion of that person.

16(c) A licensed corporation may refuse admission to and eject
17from the enclosure of the race track operated by the
18corporation, any person licensed by the commissions under
19section 213, employed at his occupation at the race track, whose
20presence there is deemed detrimental to the best interests of
21horse racing, citing the reasons for that determination. The
22action of the corporation in refusing the person admission to or
23ejecting him from a race meeting ground or enclosure shall have
24immediate effect. The person refused admission or ejected shall
25receive a hearing before the appropriate commission, if
26requested, pursuant to rules and regulations adopted for that
27purpose by the appropriate commission and a decision rendered
28following that hearing.

29(d) A licensed corporation may not refuse admission to or
30eject a law enforcement official while that official is actually

1engaged in the performance of official duties.

2(e) A person found within a race track enclosure after
3having been refused admission thereto or ejected therefrom
4shall, upon conviction thereof in a summary proceeding, be
5sentenced to pay a fine not exceeding $300 or undergo
6imprisonment for a term not exceeding 90 days, or both.

7Section 216. Interstate simulcastings of horse races.

8Each commission may, upon request by any licensed
9corporation, grant permission for electronically televised
10simulcasts of horse races to be operated by the licensed
11corporation at the race track enclosure where a horse race
12meeting is being conducted during, between, before or after
13posted races for that racing day. The posted races for that
14racing day shall include a minimum of eight live races, except,
15at thoroughbred tracks on the one day designated as Breeders'
16Cup Event Day, there shall be a minimum of five live races. The
17simulcasts shall be limited to horse races conducted at
18facilities outside this Commonwealth and televised to race track
19enclosures within this Commonwealth. The simulcasts shall also
20be limited to thoroughbred races designated as Grade I stakes,
21or the international equivalent thereto, with purses of at least
22$100,000; standard bred races with purses of at least $100,000;
23and other stakes races which have, in the opinion of the
24appropriate commission, significant value to the Pennsylvania
25racing industry. Cross simulcasting of the aforementioned races
26shall be permitted as long as the particular race is available
27to all race tracks in the Commonwealth which are operating live
28racing that day. All simulcasts of horse races from outside this
29Commonwealth shall also comply with the provisions of the
30Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001

1et seq. All forms of pari-mutuel wagering as described under
2section 221 shall be allowed on horse races to be televised by
3simulcasting. Each commission may promulgate rules or
4regulations to regulate the wagering and the operation of these
5horse races. All moneys wagered by patrons on these horse races
6shall be computed in the amount of money wagered each racing day
7for purposes of taxation under section 222.

8Section 216.1. Televised international and interstate
9simulcastings of horse races.

10(a) Each commission may, upon request by a licensed
11corporation, grant permission to maintain common pari-mutuel
12pools on international and interstate races transmitted to and
13from the racetrack enclosures within this Commonwealth, such
14licensed corporation to be designated as the "host licensee."
15The permission to act as host licensee for international and
16interstate simulcast races shall be limited to licensed
17corporations:

18(1) which have a live racing agreement with a horseman's
19organization representing a majority of owners and trainers
20at the facility where the licensed corporation conducts
21racing dates;

22(2) which have scheduled 95% of the total number of
23horse or harness racing days scheduled in 1986 by it or its
24predecessor at the facility where the licensed corporation
25conducts racing dates; and

26(3) which, subject to actions or activities beyond the
27control of the licensee, conduct not less than eight live
28races per race date during each meet at the facility where
29the licensed corporation conducts racing dates, except for
30thoroughbred tracks on the day designated as Breeder's Cup

1Event Day, when the facility shall hold a minimum of five
2live races.

3A horseman's organization representing a majority of owners and
4trainers at a racetrack may consent to waiving or modifying the
5provisions pertaining to the required number of racing days and
6races per day scheduled by a licensed corporation at that
7racetrack.

8(b) Cross simulcasting of the races described in subsection
9(a) shall be permitted if all amounts wagered on the races in
10this Commonwealth are included in common pari-mutuel pools. A
11host licensee seeking permission to cross simulcast must obtain
12approval from both the State Harness Racing Commission and the
13State Horse Racing Commission. All simulcasts of horse races
14shall also comply with the provisions of the Interstate Horse
15Racing Act of 1978 (92 Stat. 1811, 15 U.S.C. § 3001 et seq.).
16All forms of pari-mutuel wagering as described under section 221
17shall be allowed on horse races to be televised by simulcasting.
18Each commission may permit pari-mutuel pools in this
19Commonwealth to be combined with pari-mutuel pools created under
20the laws of another jurisdiction and may permit pari-mutuel
21pools created under the laws of another jurisdiction to be
22combined with pari-mutuel pools in this Commonwealth. Each
23commission may promulgate rules or regulations to regulate
24wagering on televised simulcasts.

25(c) All moneys wagered by patrons in this Commonwealth on
26these horse races shall be computed in the amount of money
27wagered each racing day for purposes of taxation under section
28222 and all thoroughbred races shall be considered a part of a
29thoroughbred horse race meeting and all harness races shall be
30considered a part of a harness horse race meeting for purposes

1of section 222(b)(5).

2Section 217. Refunds.

3(a) Money received by the commissions may, within one year
4from receipts thereof, be refunded, to the party for whose
5account the same were received, on proof satisfactory to the
6commissions that:

7(1) the moneys were in excess of the amount required by
8law;

9(2) the license for which application was made has been
10refused by the commission;

11(3) the moneys were received as a fine and the
12commission has, after review, reduced the amount of the fine;
13or

14(4) upon appeal, the court reduced or remitted the fine
15imposed and paid.

16(b) Refunds shall, upon approval by the commission and after
17approval by the Board of Finance and Revenue, be paid from any
18moneys in the State Racing Fund.

19Section 218. Place and manner of conducting pari-mutuel
20wagering.

21(a) Every licensed corporation shall provide during a horse
22race meeting a place or places within the race track enclosure
23at which the licensed corporation shall conduct the pari-mutuel
24system of wagering by its patrons on the results of horse races
25held at such meetings or televised to the race track enclosure
26by simulcasting. The licensed corporation shall erect a sign or
27board upon which shall be displayed the approximate straight
28odds on each horse in any race; the value of a winning mutuel
29ticket, straight, place or show on the first three horses in the
30race; the elapsed time of the race; the value of a winning daily

1double ticket, if a daily double be conducted, and any other
2information that the commissions may deem necessary for the
3guidance of the general public. The commissions may prescribe,
4by rule, the type and kind of equipment to be used for the
5display of the foregoing information.

6(b) Each commission may upon request by any licensed
7corporation grant permission to the licensed corporation to
8conduct a telephone account wagering system: Provided, however,
9That all telephone messages to place wagers must be to a place
10within the race track enclosure: And further provided, That all
11moneys used to place telephone wagers be on deposit in an amount
12sufficient to cover the wager at the race track where the
13account is opened. Each commission may promulgate rules or
14regulations to regulate telephone account wagering. All moneys
15wagered as a result of telephone account wagering shall be
16included in the amount wagered each racing day for purposes of
17taxation under section 222 and shall be included in the same
18pari-mutuel pools for each posted race. All telephone account
19wagering systems shall be solely operated by the licensed
20corporations.

21(c) A licensed corporation shall only accept and tabulate a
22wager by a direct telephone call from the holder of a telephone
23wagering account. No person shall directly or indirectly act as
24an intermediary, transmitter or agent in the placing of wagers
25for a holder of a telephone wagering account. No person shall in
26any manner place any wager by telephone to a facility in the
27race track enclosure on behalf of a holder of a telephone
28wagering account. Only the holder of a telephone wagering
29account shall place a telephone wager. Any person violating this
30subsection shall be guilty of a misdemeanor of the first degree.

1(d) A licensed corporation shall not accept a telephone
2wager from, nor establish a telephone betting account for, any
3person located in or residing in an area defined herein as the
4primary market area of a race track, other than the race track
5at which the licensed corporation is conducting a racing meet.
6Nothing herein shall prohibit the licensed corporation from
7accepting a telephone wager from, or establishing a telephone
8betting account for, any person located in or residing in the
9primary market area of the track at which the licensed
10corporation is conducting a meet and, if two tracks share
11primary market area as defined herein, both tracks shall have
12equal rights to the market in the shared area.

13(e) The primary market area of a race track, for purposes of
14this act, is defined as that land area included in a circle
15drawn with the race track as the center and a radius of 35 air
16miles.

17(f) The secondary market area of a racetrack, for purposes
18of this act, is defined as that land area included in a circle
19drawn with the racetrack as the center and a radius of 50 air
20miles, but not including the primary market area of the
21racetrack.

22(g) Notwithstanding any other provisions of this act to the
23contrary, upon approval by the appropriate commission, a
24licensed corporation may establish one or more nonprimary
25locations at which it shall conduct pari-mutuel wagering on all
26horse races conducted by such licensed corporation and may
27conduct pari-mutuel wagering on horse races conducted by another
28licensed corporation, which horse races may be televised to the
29locations, or on horse races simulcast to the locations pursuant
30to section 216, provided that:

1(1) No licensed corporation may establish nonprimary
2locations within the primary market area, as set forth in
3subsection (e), of any racetrack other than a racetrack at
4which the licensed corporation conducts race meetings.
5Establishment of a nonprimary location by a licensed
6corporation within the primary market area of a racetrack at
7which the licensed corporation conducts race meetings shall
8require approval of the commission regulating the activities
9of such licensed corporation.

10(2) Any licensed corporation may establish a nonprimary
11location within the secondary market area of a racetrack as
12set forth in subsection (f), provided that the nonprimary
13location is approved by both the State Harness Racing
14Commission and the State Horse Racing Commission.

15(3) Any licensed corporation may establish a nonprimary
16location in areas outside the primary and secondary market
17areas of any racetrack, provided that the location is
18approved by the commission which regulates the activities of
19the licensed corporation establishing the location.

20(4) Where a site is approved by the commission as a
21nonprimary location established by more than one licensed
22corporation, by agreement between the licensed corporations
23and with the approval of the appropriate commission, one
24licensed corporation may operate the pari-mutuel equipment
25for one or more of the licensed corporations at that
26location, but the location may still be considered a part of
27the racetrack enclosure of each of the licensed corporations
28approved to conduct pari-mutuel wagering at that location.

29(5) (i) Any licensed corporation, planning to establish
30a nonprimary location, shall submit to the appropriate

1commission a nonprimary location statement in a form
2prescribed by the appropriate commission which specifies,
3but is not limited to, the following:

4(A) The number of permanent and part-time jobs
5to be created at the proposed facility.

6(B) The population of the town or municipality,
7and surrounding area, where the proposed facility is
8to be located.

9(C) The proximity of the proposed facility to
10any other nonprimary location or licensed racetrack.

11(D) The type of seating to be provided,
12including areas in the proposed facility where
13patrons can handicap races.

14(E) The total seating capacity of the proposed
15facility.

16(F) The size and number of toilet facilities.

17(G) The availability of food and beverages,
18including the number of tables, chairs, kitchen
19facilities and concession stands.

20(H) The number of available parking spaces.

21(I) A description of the general demeanor of the
22facility, including lighting, decor and plans for the
23exterior of the facility.

24(J) The number of betting windows and stand-
25alone terminals to be provided.

26(K) A description of the heating and air
27conditioning units, the smoke removal equipment and
28other climate control devices.

29(L) The total square feet of the proposed
30facility.

1(ii) The General Assembly recognizes the economic
2importance of the horse racing industry in this
3Commonwealth; and further recognizes that the
4Pennsylvania horse racing industry is in a state of
5decline. Therefore, it is the intent of the General
6Assembly through this amendatory act to revitalize and
7secure the economic future of the horse racing industry
8and to encourage statewide economic development by
9assisting in the development of nonprimary locations. It
10is the further intent of the General Assembly through
11this amendatory act that in no case shall the appropriate
12commission approve a nonprimary location statement when
13the sole purpose of that statement is to provide wagering
14opportunities pursuant to this act; rather, the
15appropriate commission shall only approve a nonprimary
16location statement that plans for a public facility
17offering not only wagering opportunities, but other
18amenities, such as high class restaurants and quality
19handicapping facilities, so that all or part of the
20nonprimary facility will resemble the clubhouse
21facilities of a racetrack. It is the further intent of
22the General Assembly through this amendatory act to offer
23the potential for the creation of jobs, not only in the
24racing and wagering industry, but more particularly in
25other service jobs, such as parking attendants, waiters
26and waitresses, security guards, custodial workers and
27food service personnel.

28(iii) In determining whether the nonprimary location
29statement meets the legislative intent of this amendatory
30act, the appropriate commission shall consider factors

1which include, but are not limited to, the following:

2(A) The purposes and provisions of this
3amendatory act.

4(B) The public interest.

5(C) The integrity of live racing.

6(D) The impact on the local community.

7(E) The potential for job creation.

8(F) The quality of the physical facilities and
9all services to be provided therein.

10(iv) In considering whether the appropriate
11commission will grant, suspend or revoke approval of
12nonprimary locations, the provisions of section 209(f)(2)
13shall apply. In connection therewith, the commission
14shall annually conduct inspections of the primary
15facility.

16(v) The rights, duties and obligations of the
17appropriate commission, as set forth in this amendatory
18act, shall apply to nonprimary locations and any
19employees or vendors of the licensed corporation
20establishing the nonprimary location.

21(6) (i) In addition to the requirements of paragraph
22(10), any licensed corporation which is authorized to
23conduct racing at any primary racetrack location at which
24there has not been, in the previous calendar year, a
25minimum of 142 days of live racing shall not be eligible
26to establish nonprimary locations outside its primary
27market area and shall only be eligible to establish
28nonprimary locations within its primary market area
29according to the following schedule.

30Year

 

1 

2 

3 

4 

5 

6 

7 

Number of




live racing
days
conducted

Number of days




in subsequent
year permitted
to operate
nonprimary
locations
within primary
market area

Number of




live racing
days
conducted

Number of days




in subsequent
year permitted
to operate
nonprimary
locations
within primary
market area

81988

50

365

 

 

91989

69

365

Under 69

307

101990

88

365

Under 88

259

111991

107

365

Under 107

191

121992

126

365

Under 126

133

131993

142

365

Under 142

75

14(ii) Notwithstanding the chart contained in
15subparagraph (i), if any such licensed corporation
16schedules 69 or more racing days in calendar year 1989,
17it may, upon approval of the appropriate commission,
18establish nonprimary locations within its primary market
19area for that calendar year.

20(7) (i) The licensed corporation authorized to hold
21race meetings at a primary racetrack location at which
22more than one license is so authorized may be granted up
23to two nonprimary locations by the appropriate
24commission, up to a maximum of four per primary racetrack
25location. The licensed corporation authorized to hold
26race meetings at a primary racetrack location at which
27there is only one such licensed corporation so authorized
28may be granted up to three nonprimary locations.

29(ii) In addition to the nonprimary locations
30authorized by subparagraph (i), during each of the

1calendar years 1989 and 1990, the appropriate commission
2may approve no more than one additional nonprimary
3location per primary racetrack location, for one licensed
4corporation authorized to conduct racing at the primary
5racetrack location.

6(iii) The General Assembly may, at any time, stop
7the further approval of any nonprimary locations. The
8State Harness Racing Commission and the State Horse
9Racing Commission shall not have the authority to approve
10any greater number of nonprimary locations after December
1131, 1990, unless further authorized by the General
12Assembly.

13(iv) It shall be the duty of both the State Harness
14Racing Commission and the State Horse Racing Commission
15to annually report to the General Assembly on the effect
16of nonprimary locations on such factors as the local
17economy, the public interest and the integrity of live
18racing, and make suggestions and recommendations.

19(8) (i) Moneys wagered at all primary and nonprimary
20locations pursuant to this act shall be included in
21common pari-mutuel pools. All money wagered by patrons on
22these races shall be computed in the amount of money
23wagered each racing day for purposes of taxation under
24section 222. The licensed corporation conducting the race
25meeting and maintaining the pari-mutuel pools shall
26maintain accurate records of the amount wagered in each
27pool from every primary and nonprimary location.

28(ii) The retained moneys as provided for in section
29222(e) shall be calculated for each location where pari-
30mutuel wagering is being conducted. If wagering has taken

1place at a nonprimary location where the wagering is
2conducted by a licensed corporation other than the
3licensed corporation conducting the race meeting, the
4licensed corporation conducting the race meeting shall
5retain any moneys to which it is entitled by agreement
6between such licensed corporations and shall pay over the
7balance of the retained moneys to the licensed
8corporation conducting the wagering at the nonprimary
9location.

10(9) (i) A licensed corporation conducting a race
11meeting on which pari-mutuel wagering is conducted at one
12or more nonprimary locations shall distribute to the
13horseman's organization representing a majority of owners
14and trainers at its racetrack, or in accordance with the
15practice of the parties, to be used for payment of purses
16at that racetrack, an amount equal to not less than 6% of
17the daily gross wagering handle on such races at a
18nonprimary location: Provided, however, That when the
19gross wagering handle on such races at any such
20nonprimary location on a given day is less than $30,000,
21the above-referenced percentage shall be not less than
223%, and when the gross wagering handle on such races at
23any such nonprimary location on a given day is between
24$30,000 and $75,000 inclusive, the above-referenced
25percentage shall be not less than 4.75%: And provided
26further, That whenever a nonprimary location is within
27the primary market area of a licensed corporation other
28than the licensed corporation conducting such races, the
29applicable percentage shall be distributed one-half to
30the horseman's organization representing a majority of

1owners and trainers at the racetrack, or in accordance
2with the practice of the parties, where the race meeting
3is being conducted to be used for the payment of purses
4at that racetrack and one-half to such horseman's
5organization, or in accordance with the practice of the
6parties, at the racetrack within the primary market area
7to be used for the payment of purses at that racetrack.
8Nothing in this subparagraph shall prevent a licensed
9corporation from agreeing to distribute amounts greater
10than the percentages set forth in this subparagraph.
11However, if no alternative agreement has been reached,
12the total percentage paid for purses under this
13subparagraph shall be in accordance with the minimum
14percentages set forth in this subparagraph.

15(ii) Notwithstanding subparagraph (i), or any other
16provision in this act to the contrary, a nonprimary
17location may be established within the primary market
18area of a racetrack by agreement between the licensed
19corporation and the horseman's organization representing
20a majority of the owners and trainers at that racetrack
21specifying the total percentage of handle wagered at such
22nonprimary location to be distributed to that horseman's
23organization, or in accordance with the practice of the
24parties, to be used for the payment of purses at that
25racetrack. If no such agreement is reached covering such
26locations, the total percentage to be paid for purses
27pursuant to this subparagraph shall be the same as that
28applied to on-track wagering at the racetrack located
29within the primary market area.

30(10) The provisions of section 234 relating to the

1required number of racing days apply to this subsection.
2However, a horseman's organization representing a majority of
3owners and trainers at a racetrack may consent to waiving or
4modifying the provisions as pertaining to the required number
5of racing days scheduled by a licensed corporation at that
6racetrack.

7Section 219. Books and records of pari-mutuel wagering.

8Every corporation that conducts a horse race meeting at which
9pari-mutuel wagering is authorized, shall keep books and records
10so as to clearly show by separate record the total amount of
11money contributed to every pari-mutuel pool. The Department of
12Revenue or its authorized representative shall have access to
13all books and records for the purpose of examining the same and
14ascertaining whether the proper amount due to the State is being
15paid by the licensed corporation.

16Section 220. Filing of certain agreements with the commissions.

17Every corporation licensed to conduct horse race meetings at
18which pari-mutuel wagering is permitted shall promptly after
19entering any lease agreement concerning any concession, labor
20management relation, hiring of designated classes of officers,
21employees or contractors specified by the commissions or any
22such other contract or agreement as the commissions may
23prescribe, file with the appropriate commission a true and
24correct copy, or an accurate summary, if oral.

25Section 221. Retention percentages for pari-mutuel pools.

26(a) Every licensed corporation shall distribute the moneys
27in any pari-mutuel pool to the holders of winning tickets under
28the following requirements:

29(1) all tickets shall be presented for payment before
30the first day of April of the year following the year of

1their purchase; and

2(2) seventeen percent of the moneys plus the breakage
3from regular wagering pools shall be retained by the licensed
4corporations for further distribution under section 222; or

5(3) nineteen percent of the moneys plus the breakage
6from regular wagering pools from licensed corporations whose
7total deposits in all pari-mutuel pools averaged less than
8$300,000 per racing day for their previous meeting at the
9same facility; or

10(4) twenty percent of the moneys plus the breakage from
11the exacta, daily double, quinella and other wagering pools
12involving two horses each racing day shall be retained by the
13licensed corporations for further distribution under section
14222; or

15(5) at least 26% but no more than 35% of the moneys plus
16the breakage from the trifecta or other wagering pools
17involving more than two horses in one or more races each
18racing day shall be retained by the licensed corporations for
19further distribution under section 222; and

20(6) except as provided for in subsection (d.1) of
21section 222, every corporation may retain less than 17%, 19%
22or 20% of the moneys in the wagering pools under paragraphs
23(2), (3) and (4) or less than 26% of the moneys in the
24wagering pools under paragraph (5) upon approval from the
25appropriate commission; and

26(7) every corporation may retain more than 25% but no
27more than 35% of the moneys in the wagering pools under
28paragraph (5) upon approval from the appropriate commission;
29and

30(8) all moneys remaining in the wagering pools described

1under paragraphs (2), (3), (4), (5), (6) and (7) shall be
2distributed to the holders of winning tickets.

3(b) Breakage shall mean the odd cents of redistributions to
4be made on all contributions to pari-mutuel pools exceeding a
5sum equal to the next lowest multiple of ten.

6(c) The commissions shall establish by rule or regulation
7provisions for minus-pools relating to the retention
8requirements under this section.

9Section 222. Distribution of moneys retained from pari-mutuel
10pools; taxation.

11(a) There is hereby created the State Racing Fund. All
12licensed corporations that conduct harness race meetings shall
13pay a tax through the Department of Revenue for credit to the
14State Racing Fund. All licensed corporations that conduct
15thoroughbred horse race meetings shall pay a tax through the
16Department of Revenue for credit to the State Racing Fund. The
17tax imposed on all licensed corporations shall be a percentage
18tax on the amount wagered each racing day and be paid from the
19moneys retained under section 221.

20(a.1) At the close of each day of racing, all corporations
21licensed to conduct harness horse race meetings or thoroughbred
22horse race meetings which annually conduct at least 100 days of
23racing, or when two licensed corporations conduct their race
24meetings at the same facility and between them annually conduct
25at least 175 days of racing, will pay out of the moneys retained
26on that day under section 221, through the Department of Revenue
27for credit to the State Horse Racing Fund the following taxes
28for the time periods stated:

29(1) From January 1, 1984 through June 30, 1984 - 3.8%.

30(2) From July 1, 1984 through June 30, 1986 - 2.0%.

1(3) After June 30, 1986 - 1.5%, except as provided in
2subsection (a.4).

3(a.2) Corporations not annually conducting at least 100 days
4of racing, or 175 days of racing in conjunction with another
5licensee at the same facility as described above, will pay 2.5%
6from July 1, 1984 to June 30, 1986, and 2.0% thereafter. This
7subsection shall not apply if races are not conducted because of
8an act of God or because of a strike resulting from a labor
9dispute.

10(a.3) For purposes of this section, a racing day shall be
11considered conducted after the appropriate commission has
12certified the allocation of racing days to the Secretary of the
13Department of Revenue under the provisions of section 207(b)
14even if the racing day is subsequently cancelled by the licensed
15corporation for reasons beyond its control.

16(a.4) Any corporation which does not hold a license under
17section 209 on the effective date of this act and which is
18granted a license under this act shall be subject to payment out
19of moneys retained under section 221, through the Department of
20Revenue for credit to the State Horse Racing Fund, of the
21following tax for a period of four years from the issuance date
22of the license - 1.0%, at which time said licensee shall be
23subject to the lawful rate then in effect under subsection (a.1)
24(3).

25(a.5) In order to qualify for the 1.0% tax rate authorized
26under subsection (a.4), the newly licensed corporation may not
27include any officer, director or the immediate relative (spouse,
28children or parents) of any officer or director of any licensed
29racing corporation which conducted, at any time within the
30immediately preceding five years, any horse or harness race

1meetings at the racetrack enclosure for which the license is
2sought. Also, the newly licensed corporation may not include any
3shareholder (or their immediate relative) holding a 5% or
4greater interest who also held a 5% or greater interest in any
5corporation licensed at any time within the immediately
6preceding five years to conduct horse or harness race meetings
7at the racetrack enclosure for which the license is sought.

8(b) The commissions shall distribute moneys from the State
9Racing Fund, together with the interest earned thereon, in the
10following manner:

11(1) The salaries of employees of the commission employed
12by or for it under the provisions of this act and the act of
13April 9, 1929 (P.L.177, No.175), known as "The Administrative
14Code of 1929," net of any income earned or received by the
15commission.

16(2) The payment of the compensation of employees of the
17Department of Revenue when used in collecting taxes and
18penalties imposed by this act.

19(3) The expenses of the Secretary and the Department of
20Agriculture incurred in administering their duties under this
21act.

22(4) To pay all other expenses incurred by the commission
23in administering this act, net of any income earned or
24received by the commission.

25(5) From remaining moneys in the State Racing Fund:

26(i) An amount equivalent to one percent of the
27amount wagered each racing day at thoroughbred horse race
28meetings shall be paid by the Horse Racing Commission
29from the State Racing Fund through the Department of
30Revenue for credit to the Pennsylvania Breeding Fund.

1(ii) An amount equivalent to one and one-half
2percent of the amount wagered each racing day at harness
3horse race meetings shall be paid by the Harness Racing
4Commission from the State Racing Fund through the
5Department of Revenue for credit to the Pennsylvania Sire
6Stakes Fund, beginning on July 1, 1983.

7(6) All remaining moneys in the State Racing Fund shall
8be paid into the General Fund.

9(c) All breakage retained under section 221 by licensed
10corporations that conduct thoroughbred horse race meetings shall
11be distributed in the following manner:

12(1) Fifty percent of the breakage shall be retained by
13the licensed corporations.

14(2) Twenty-five percent of the breakage shall be
15retained by the licensed corporations to be used solely for
16purses to the horsemen.

17(3) Twenty-five percent of the breakage shall be paid to
18the Department of Revenue for credit to the State Horse
19Racing Fund.

20(d) All breakage retained under section 221 by licensed
21corporations that conduct harness horse race meetings shall be
22distributed in the following manner:

23(1) Fifty percent of the breakage shall be retained by
24the licensed corporations.

25(2) The remaining 50% of the breakage shall be retained
26by the licensed corporations of which one-half of this
27breakage shall be used solely by the licensed corporations
28for claiming and nonclaiming races where entry is restricted
29to Pennsylvania-sired horses in the following manner:

30(i) On January 1, 1982, and thereafter at least five

1of the horses programmed to start shall be Pennsylvania-
2sired horses. If at least five of the horses programmed
3to start are not Pennsylvania-sired horses, then the
4licensed corporation conducting the meet shall cancel the
5race.

6(ii) On January 1, 1983, and thereafter at least
7seven of the horses programmed to start shall be
8Pennsylvania-sired horses. If at least seven of the
9horses programmed to start are not Pennsylvania-sired
10horses, then the licensed corporation conducting the meet
11shall cancel the race.

12(iii) On January 1, 1984, and thereafter, only
13Pennsylvania-sired horses shall be allowed to start in
14these races. If all the positions are not filled by
15Pennsylvania-sired horses in these races, then the
16licensed corporation conducting the meet shall cancel the
17race.

18All breakage moneys due licensed corporations for the purses for
19claiming and nonclaiming races under this paragraph but not
20expended as a result of a race cancellation shall be carried
21forward to the next succeeding meet by the licensed corporations
22to be used for claiming and nonclaiming races which restrict
23entry to Pennsylvania-sired horses under the provisions of this
24paragraph.

25(d.1) An amount equivalent to one percent of the amount
26wagered at each racing day at thoroughbred and harness horse
27race meetings as set forth in section 221(a)(4) and (5) shall be
28paid through the Department of Revenue for credit to the State
29Racing Fund.

30(e) All remaining moneys retained under section 221 and not

1heretofore distributed shall be kept by the licensed
2corporations for their use.

3Section 223. Pennsylvania Breeding Fund.

4(a) There is hereby created a restricted account in the
5State Racing Fund to be known as the Pennsylvania Breeding Fund
6which shall consist of the money appropriated under the
7provisions of section 222 and which shall be administered by the
8State Horse Racing Commission.

9(b) After the deduction of expenses related to the
10administration and development of the Pennsylvania Breeding Fund
11program incurred by the Pennsylvania Horse Breeders'
12Association, the State Horse Racing Commission shall, by rule or
13regulation, provide for awards as follows:

14(1) An award of 30% of the purse earned by every
15registered Pennsylvania-bred thoroughbred horse sired by a
16registered Pennsylvania sire at the time of conception of the
17registered Pennsylvania-bred thoroughbred horse, or an award
18of 20% of the purse earned by every registered Pennsylvania-
19bred thoroughbred horse sired by a nonregistered sire, which
20finishes first, second or third in any race conducted by a
21licensed corporation under this act shall be paid to the
22breeder of said registered Pennsylvania-bred thoroughbred
23horse. A single award under this paragraph may not exceed 1%
24of the total annual fund money.

25(2) An award of 10% of the purse earned by any
26Pennsylvania-bred thoroughbred horse which finishes first,
27second or third in any race conducted by a licensed
28corporation under this act shall be paid to the owner of the
29registered Pennsylvania sire which regularly stood in
30Pennsylvania at the time of conception of said Pennsylvania-


1bred thoroughbred horse. A single award under this paragraph
2may not exceed .5% of the total annual fund money.

3(3) An award of 10% of the purse earned by any
4registered Pennsylvania-bred thoroughbred horse which
5finishes first in any race conducted by a licensed
6corporation under this act not restricting entry to
7registered Pennsylvania-bred thoroughbred horses shall be
8paid to the licensed owner of said registered Pennsylvania-
9bred thoroughbred horse at the time of winning. A single
10award under this paragraph may not exceed .5% of the total
11annual fund money.

12(c) Up to one-fifth of the total of the estimated fund
13moneys remaining each year after the deduction of expenses
14related to the administration and development of the
15Pennsylvania Breeding Fund program and the payment of breeder,
16stallion and owner awards, shall be divided among the licensed
17corporations that conduct thoroughbred horse race meetings in
18direct proportion to the rate by which each licensed corporation
19generated the fund moneys during the previous year to be used
20solely for purses for Pennsylvania Breeding Fund stakes races
21which restrict entry to registered Pennsylvania-bred
22thoroughbred horses.

23(d) The fund moneys remaining following disbursements as
24directed in subsection (b)(1), (2) and (3) and subsection (c)
25shall be divided among the licensed corporations that conduct
26thoroughbred horse race meetings in direct proportion to the
27rate by which each licensed corporation generated the fund
28moneys during the previous year to be used for purses as
29follows:

30(1) Claiming and nonclaiming Pennsylvania Breeding Fund

1races which restrict entry to registered Pennsylvania-bred
2thoroughbred horses.

3(2) Claiming and nonclaiming Pennsylvania Breeding Fund
4races which prefer registered Pennsylvania-bred thoroughbred
5horses as starters. In these races, should eight or more
6registered Pennsylvania-bred horses pass the entry box, the
7race shall be considered closed to horses other than
8registered Pennsylvania-bred thoroughbred horses.

9(e) Those Pennsylvania Breeding Fund moneys due licensed
10corporations as outlined in subsections (c) and (d) but not
11expended during the calendar year may be carried forth in the
12fund on the account of said licensed corporations to be expended
13during the succeeding year in addition to said corporations'
14fund moneys annually due them for purses.

15(f) The Pennsylvania Breeding Fund Advisory Committee, under
16the jurisdiction of the State Horse Racing Commission, is hereby
17established and shall be part of the Pennsylvania State Horse
18Racing Commission. The commission shall consist of five members,
19all of whom shall be residents of Pennsylvania, to be appointed
20by the commission by June 1 of each year. The committee shall
21consist of two members of the Pennsylvania Horse Breeders'
22Association, one member from the licensed corporations, one
23member from the association representing horsemen racing in
24Pennsylvania and one member of the commission. If any member
25other than the commission member has not been recommended by
26June 1 of each year, the commission shall make an appointment
27for the organization failing to so recommend a member of the
28committee. The committee shall assist and advise the commission
29under the provisions of this act but shall have no power in
30administering the fund. The members of the committee shall

1receive no compensation for their services as members.

2(g) The State Horse Racing Commission may contract with the
3Pennsylvania Horse Breeders' Association as the sole responsible
4body for the registration and records of Pennsylvania-breds. The
5Pennsylvania Horse Breeders' Association shall advise the
6commission when called upon and shall determine the
7qualifications for Pennsylvania-bred thoroughbred horses and
8Pennsylvania sires. Its registration and record facts are hereby
9declared as official Pennsylvania records. At the close of each
10calendar year, the Pennsylvania Horse Breeders' Association,
11through the Pennsylvania Breeding Fund Advisory Committee, shall
12submit to the commission for its approval an itemized budget of
13projected expenses for the ensuing year relating to the
14administration and development of the Pennsylvania Breeding Fund
15program. The commission, on no more than a quarterly basis,
16shall reimburse from the fund the Pennsylvania Horse Breeders'
17Association for those expenses actually incurred in the
18administration and development of the Breeding Fund program.

19Section 224. Pennsylvania Sire Stakes Fund.

20(a) There is hereby created a restricted account in the
21State Racing Fund to be known as the Pennsylvania Sire Stakes
22Fund which shall consist of the money appropriated under the
23provisions of section 222 and which shall be administered by the
24State Harness Racing Commission.

25(b) Sixty percent of the money remaining in the excess fund
26account of the Pennsylvania Sire Stakes Fund at the end of the
27calendar year in which this subsection is enacted shall be
28distributed to licensed corporations that conduct harness horse
29race meetings to be used in the next succeeding calendar year as
30purse money for Pennsylvania-sired horses. The remaining 40% of

1the money in the excess fund account at the end of the calendar
2year of the enactment of this subsection, together with the
3interest earned on that money, shall be distributed to licensed
4corporations that conduct harness horse race meetings to be used
5in the next succeeding calendar year following the next
6succeeding calendar year as purse money for Pennsylvania-sired
7horses. After deduction of sufficient funds to cover the State
8Harness Racing Commission's cost of administration, 80%, unless
9a smaller percentage is necessary in order to comply with the
10minimum dollar requirement of subsection (e), of all remaining
11moneys in the Pennsylvania Sire Stakes Fund at the end of the
12calendar year shall be distributed to licensed corporations that
13conduct harness horse race meetings to be used as purse money
14for Pennsylvania-sired horses. The State Harness Racing
15Commission may then allocate up to a total of and not exceeding
1640% of the total amount to be distributed to licensed
17corporations in a calendar year for use for a series of
18championship final races at the race tracks of licensed
19corporations that conduct harness horse race meetings. The State
20Harness Racing Commission shall allocate the moneys to these
21championship final races in an equal amount for each sex, age
22and gait for two- and three-year-old trotters and pacers. The
23State Harness Racing Commission shall determine conditions
24establishing eligibility to these final events. No pari-mutuel
25harness track shall be awarded more than 50% of the championship
26final races in any calendar year. The State Harness Racing
27Commission shall schedule these final events so as to evenly
28alternate classes at each race track each year. After the
29allocation for the championship final races has been determined,
30the remaining funds to be distributed to licensed corporations

1that conduct harness horse race meetings shall be divided
2equally among the licensed corporations. Each licensed
3corporation shall divide the funds received equally for each of:

4(1) four two-year-old races; one pace for colts, one
5pace for fillies, one trot for colts and one trot for
6fillies; and

7(2) four three-year-old races; one pace for colts, one
8pace for fillies, one trot for colts and one trot for
9fillies.

10(c) Each allotment shall provide purse money for the
11respective races. The purse money shall be in addition to any
12entry fees or other funds available.

13(d) Entry for these races shall be limited to harness horses
14which were sired by a standardbred stallion regularly standing
15in Pennsylvania and each race shall be designated a Pennsylvania
16sire stakes race. The State Harness Racing Commission shall make
17the provisions and regulations as it shall deem necessary for
18the proper administration of the entry restriction.

19(e) The remaining moneys in the Pennsylvania Sire Stakes
20Fund up to a total of and not exceeding $25,000 for each
21agricultural fair and one- or two-day events as defined in
22harness racing commission regulations shall be divided equally
23among those agricultural fairs and one- or two-day events, not
24to exceed more than five one- or two-day events per year and as
25authorized by the State Harness Racing Commission, provided that
26no more than two one-day or two-day events per county are
27authorized unless, after a date established by the commission,
28all five of the events have not been allocated, conducting
29harness horse races for two-year-old and three-year-old harness
30horses: Provided, however, That in no event shall less than

1$225,000 be allocated from the Pennsylvania Sire Stakes Fund and
2be divided equally among those agricultural fairs and one- or
3two-day events conducting these races. Each fair or one- or two-
4day events receiving the funds shall divide the total amount
5equally among all eligible races for two-year-old and three-
6year-old harness horses and shall apply the funds solely as
7additional purse funds. Only races to which entry is restricted
8to Pennsylvania-sired horses shall be eligible. The State
9Harness Racing Commission shall make the provisions and
10regulations as it shall deem necessary for the proper
11administration of all racing provided for in this subsection,
12including, but not limited to, portable stall rentals at one-day
13or two-day events.

14(f) The fund moneys remaining following disbursements as
15directed in subsections (b), (c), (d) and (e) shall, except as
16provided in subsection (b), be divided among active licensed
17corporations that conduct harness horse race meetings under this
18act in direct proportion to the rate by which each licensed
19corporation generated the fund moneys during the previous year.
20The fund moneys so divided shall be used for purses as follows:

21(1) A minimum of four races, claiming and nonclaiming,
22shall be carded per week on the condition sheet for overnight
23claiming and nonclaiming Pennsylvania Fund races which
24restrict entry to registered Pennsylvania-sired or wholly
25Pennsylvania-owned harness horses.

26(2) Claiming and nonclaiming Pennsylvania Fund races
27which prefer registered Pennsylvania-sired harness horses as
28starters. In these races, should seven or more registered
29Pennsylvania-sired harness horses pass the entry box, the
30race shall be considered closed to horses other than

1registered Pennsylvania-sired harness horses.

2Section 225.1. Fair Fund proceeds.

3The Secretary of Agriculture shall distribute certain moneys
4in the Fair Fund annually, on or before March 1, for
5reimbursement for each county agricultural society and each
6independent agricultural society conducting harness horse racing
7during its annual fair other than races for two- and three-year
8old colts and fillies, an amount of money equal to that used
9during their annual fair as purse money for harness horse
10racing, track and stable maintenance, starting gate rental and
11the cost of all harness horse racing officials required during
12their annual fair, but not more than $13,000, a minimum of
13$4,000 of which must be used for purse money and the balance of
14said allotment per fair, not used for purse money over the
15minimum $4,000 allotment, shall be used for said specific
16purposes herein before referenced, or otherwise said allotment
17shall be retained in the fund. The State Harness Racing
18Commission shall cause to be carried out as its responsibility a
19yearly inspection of each track facility and shall advise each
20operating fair of necessary track maintenance which is necessary
21to insure adequate racing surface during the course of scheduled
22fairs and racing events. If it is the opinion of the commission
23that the fair society or event sponsor is not adequately
24financing track maintenance through its permissible
25reimbursement under this paragraph, the commission shall so
26surcharge the Fair Fund account of said fair society or event
27sponsor to effectuate said remediation.

28Section 226. Hearing of refusal or revocation of license.

29If the commissions refuse to grant any license applied for
30under this act, or shall revoke or suspend any license granted,

1the applicant or licensee may demand, within ten days after
2notice of the decision of the appropriate commission, a hearing
3before the appropriate commission. The commission shall give
4prompt notice of the time and place for the hearing at which
5time the commission will hear the applicant or licensee. Pending
6the hearing and final determination, the action of the
7commissions in refusing to grant or in revoking or suspending a
8license shall remain in full force. The commissions may continue
9any hearing from time to time for the convenience of any of the
10parties. Any of the parties affected by a hearing may be
11represented by counsel. In the conduct of the hearing, the
12commissions shall not be bound by technical rules of evidence,
13but all evidence offered before the commissions shall be reduced
14to writing. All evidence, exhibits and findings of the
15commissions shall be permanently preserved and shall constitute
16the record of the commission. In connection with the hearing,
17the commissions shall have the power to administer oaths and
18examine witnesses, and may issue subpoenas to compel attendance
19of witnesses and the production of all material and relevant
20reports, books, papers, documents, correspondence and other
21evidence. The commissions may by order refer to one or more of
22its officers the duty of taking testimony in the matter and to
23report to the commission. Within 30 days after the conclusion of
24the hearing, the appropriate commission shall make a final order
25in writing, setting forth the reasons for the action taken by it
26and a copy thereof shall be served on the applicant or licensee.

27Section 227. Approval of the racing facility.

28The commissions shall not grant to a corporation formed under
29this act a license to conduct a horse race meeting at which
30pari-mutuel betting may be conducted, until the corporation has

1submitted to the appropriate commission a statement of the
2location of its proposed grounds and race track, together with a
3plan of the track and plans of all buildings, seating stands and
4other structures in a form as the appropriate commission may
5prescribe. All plans shall be approved by the appropriate
6commission before the issuance of any license to conduct a pari-
7mutuel horse race meeting.

8Section 228. Prohibition of wagering by certain officials,
9employees and minors.

10No commissioner, executive secretary, deputy, officer,
11representative, employee or counsel of the commission shall
12wager upon the outcome of any horse race conducted at a track at
13which pari-mutuel wagering is conducted by any licensed
14corporation of the commissions. No licensed corporation shall
15permit any person who is actually and apparently under 18 years
16of age to wager at a race meeting conducted by it. No licensed
17corporation shall permit any person who is under 18 years of age
18to attend a horse race meeting conducted by it unless the person
19is accompanied by a parent or guardian. This section shall not
20be construed to prohibit persons under 18 years of age, who are
21legally employed, from being upon the race track premises for
22the sole purpose of engaging in the performance of their duties
23as employees. The commissions shall, by rule, provide for
24enforcement of this section.

25Section 229. State horse racing veterinarians and State
26stewards.

27(a) The State Horse Racing Commission shall appoint and
28employ licensed veterinarians and stewards to serve as the horse
29racing veterinarians and State stewards for horse racing,
30respectively, at each meeting conducted by a corporation

1licensed by the State Horse Racing Commission. The State Horse
2Racing Commission shall have the authority to employ other
3individuals as shall be necessary to carry out the
4responsibilities of this section.

5(b) The costs and compensation of the horse racing
6veterinarians, State stewards and other individuals employed
7shall be fixed and paid by the State Horse Racing Commission.

8(c) The State Horse Racing Commission shall establish a job
9description and professional criteria for stewards to assure
10that they have a working knowledge of the horse racing industry.

11Section 230. State harness racing veterinarians.

12(a) The State Harness Racing Commission shall appoint and
13employ licensed veterinarians to serve as the harness racing
14veterinarians for harness racing at each meeting conducted by a
15corporation licensed by the State Harness Racing Commission. The
16State Harness Racing Commission shall have the authority to
17employ other individuals as shall be necessary to carry out the
18responsibilities under this section.

19(b) The costs and compensation of the harness racing
20veterinarians and other individuals employed to carry out the
21provisions of this act shall be fixed and paid by the State
22Harness Racing Commission.

23Section 231. Free passes, cards or badges.

24(a) A licensed corporation shall not issue free passes,
25cards or badges without admission tax, except to persons
26hereafter described: officers, employees and shareholders of the
27corporation conducting the race meeting; members, officers and
28employees of the commissions; members of horse racing
29associations of other states and foreign countries; public
30officers engaged in the performance of their duties; persons

1employed and accredited by the press to attend such meeting;
2owners, stable managers, trainers, jockeys, concessionaries and
3other persons whose actual duties require their presence at the
4race tracks.

5(b) The commissions may allow a licensed corporation to
6issue free passes, cards or badges for special promotional
7programs and seasonal discount ticket programs, so long as the
8corporation has obtained approval from the appropriate
9commission. The admissions taxes under section 208 shall be
10imposed on the price of all seasonal discount tickets sold by a
11licensed corporation.

12(c) The issuance of tax-free passes, cards or badges shall
13be under the rules and regulations of the commissions. A list of
14all persons, except persons admitted under an approved special
15promotional program or seasonal discount ticket program, to whom
16free passes, cards or badges are issued shall be filed with the
17appropriate commission.

18Section 232. Political subdivision agricultural fairs and horse
19race meetings not licensed to conduct pari-mutuel
20wagering.

21Pari-mutuel wagering on horse races at any county or other
22political subdivision, agricultural or other fair shall not be
23authorized. No lottery, pool selling, bookmaking or any other
24kind of gambling upon the results of races, heats or contests of
25speed of horses shall be allowed at any fair or at any horse
26race meeting conducted in the State, except those licensed to
27operate pari-mutuel wagering under the provisions of this act.

28Section 233. Monitoring of wagering on video screens.

29Every corporation licensed to conduct pari-mutuel betting
30shall display on video screens the approximate odds or

1approximate will-pays on each horse for each race as well as any
2combination of races including, but not limited to, quinellas,
3exactas, perfectas and any other combination or pool of races.
4No display of approximate odds or approximate will-pays shall be
5required where the wager is on horses in four or more races,
6such as "Pick 4, Pick 5 or Pick 6." In addition to displaying
7the amount of money wagered, the approximate odds or approximate
8will-pays on each horse or combination of horses shall be shown
9on video screens in each wagering division. For trifectas, in
10lieu of odds or approximate will-pays, the amount of money being
11wagered on each horse to win in the trifecta pool shall be
12displayed on video screens separately from any other
13information. The above required information shall be displayed
14from the opening of bets or wagering and be continually
15displayed until the wagering is closed. At least one video
16screen in each wagering division shall display the amount of
17money wagered on each horse involved in any trifecta pool.

18Section 234. Simulcasting.

19The State Horse Racing Commission and the State Harness
20Racing Commission shall only permit intrastate simulcasting of
21live racing between two licensed corporations when each
22continues to schedule 95% of the total number of horse or
23harness racing days scheduled in 1986 at the facility where each
24said licensed corporation conducts its horse or harness racing
25dates, and when the average number of live horse or harness
26races per race day equals 90% of the average number of live
27horse or harness races conducted per day in 1985 at the facility
28where each said licensed corporation conducts its horse or
29harness racing dates, subject to any actions or activities
30beyond the control of the licensee: Provided, however, That for

1any licensed corporation that was granted a permanent license
2for horse racing and operating at a facility where the average
3daily handle at the facility at which the licensed corporation
4conducts racing dates is less than $150,000 in any calendar year
5after 1985, the State Horse Racing Commission may permit
6intrastate simulcasting when the licensed corporation first
7schedules a minimum of 50 racing days in the calendar year in
8which it wishes to simulcast. A newly licensed corporation
9racing at the facility may be permitted to intrastate simulcast
10by the State Horse Racing Commission when it first schedules at
11least 50 racing dates in the year in which it wishes to
12simulcast. If a newly licensed corporation is awarded harness or
13horse racing dates after 1987 and races those dates at a horse
14or harness racing facility existing in 1987, other than a
15facility whose average daily handle is less than $150,000, the
16respective commissions shall not permit intrastate simulcasting
17unless the same number of horse or harness dates scheduled at
18that facility in 1987 are scheduled at that facility in the year
19that the corporation wishes to simulcast subject to any actions
20or activities beyond the control of the licensees (i.e. act of
21God, strike). For a licensed corporation awarded racing dates at
22a facility which did not conduct horse or harness racing prior
23to 1987, the respective commissions may permit intrastate
24simulcasting if the licensed corporation is the only corporation
25operating that facility when that corporation first schedules a
26minimum of 125 days of racing dates in the calendar year in
27which it wishes to simulcast or when more than one such
28corporation is awarded dates for racing at the same facility
29when those corporations first schedule a minimum of 200 days of
30racing in the calendar year in which they wish to simulcast. For

1purposes of this section a racing day shall consist of a minimum
2of eight live races, except at thoroughbred tracks on Breeders'
3Cup Event Day. For any licensed racing corporation engaged in
4simulcasting, regardless of location or distance from another
5licensed racing corporation, there shall exist a written
6agreement with the horseman's organization representing a
7majority of the owners and trainers at both the sending and
8receiving racetracks. If no agreement can be reached, then the
9licensed corporation may petition the court of common pleas in
10the county in which the licensed corporation racetrack is
11located, which may, upon good cause shown by the licensed
12corporation that failure to consent would be detrimental to the
13Pennsylvania racing industry, direct the organization
14representing the horsemen to approve the simulcast agreement.
15The respective commission may then authorize the simulcasting,
16if, in the opinion of the appropriate commission, such
17simulcasting will have significant value to the Pennsylvania
18racing industry. The simulcast signal shall be encoded, and the
19racetrack receiving the simulcast signal shall not send this
20signal anywhere other than public locations authorized under
21section 218 or 218-A. All forms of pari-mutuel wagering
22described in section 221 shall be allowed on races to be
23televised by simulcasting under this section. The State Horse
24Racing Commission and the State Harness Racing Commission may
25promulgate regulations on wagering and the operation of these
26races. All money wagered by patrons on these races shall be
27computed in the amount of money wagered each racing day for
28purposes of taxation under section 222. In the event the
29simulcast is between a thoroughbred racetrack and a harness
30racetrack, both commissions shall have jurisdiction, and any

1approval required hereunder must be received from both
2commissions: Provided, however, That if no agreement can be
3reached between the horseman's organization aforementioned, then
4the licensed corporation may petition the court of common pleas
5in the county in which the licensed corporation racetrack is
6located, which may, upon good cause shown by the licensed
7corporation that failure to consent would be detrimental to the
8Pennsylvania racing industry, direct the organization
9representing the horsemen to approve the simulcast agreement.
10The respective commissions may then authorize the simulcasting
11if, in the opinions of the respective commission, such
12simulcasting will have a significant value to the Pennsylvania
13racing industry. The provisions of this section with regard to
14the required number of racing days may be waived or modified by
15the applicable commission if the waiver or modification has been
16consented to by the horseman's organization representing a
17majority of the owners and trainers at the racetrack where the
18racing days are to be scheduled or raced.

19Section 235. Commingling.

20(a) This section shall be applicable only to licensed
21thoroughbred racing corporations.

22(b) The race secretary shall receive entries and
23declarations as an agent for the licensed corporation for which
24the race secretary acts. The race secretary or an individual
25designated by the licensed corporation may receive stakes,
26forfeits, entrance money, jockey's and other fees, purchase
27money in claiming races and other money that can properly come
28into his possession as an agent for the licensed corporation for
29which the race secretary or designee is acting.

30(c) A licensed corporation shall maintain a separate

1account, called a Horsemen's Account. Money owing to owners in
2regard to purses, stakes, rewards, claims and deposits shall be
3deposited into the Horsemen's Account. Funds in the account
4shall be recognized and denominated as being the sole property
5of owners. Deposited funds may not be commingled with funds of
6the licensed corporation unless a licensed corporation has
7established, in favor of the organization which represents a
8majority of the owners and trainers racing with the licensed
9corporation, an irrevocable clean letter of credit with an
10evergreen clause. The minimum amount of the credit must be the
11greater of $1,000,000 or 110% of the highest monthly balance in
12the Horsemen's Account in the immediate prior year. To calculate
13the monthly balance in the Horsemen's Account, the sum of the
14daily balances shall be divided by the number of days in the
15month. The evergreen clause must provide that, 30 days prior to
16the expiration of the letter of credit, the financial
17institution can elect not to renew the letter of credit; that,
18upon this election, the financial institution must notify the
19designee of the organization which represents a majority of the
20owners and trainers racing with the licensed corporation, by
21registered mail, return receipt requested, of the election not
22to renew; and that the financial institution will honor the
23letter of credit for six months after expiration. Purse money
24earned by owners shall be deposited by the licensed corporation
25in the Horsemen's Account within 48 hours after the result of
26the race in which the money was earned has been declared
27official and the purse has been released by the commission.

28(d) A licensed corporation shall designate a bookkeeper who
29is authorized to receive and disburse funds from the Horsemen's
30Account. The bookkeeper must be bonded to provide indemnity for

1malfeasance, nonfeasance and misfeasance. A certified copy of
2the bond shall be filed with the commission.

3(e) The Horsemen's Account and the investment and deposit
4schedules relating to the account are subject to examination, at
5reasonable times, by a designee of the organization which
6represents a majority of the owners and trainers racing with the
7licensed corporation and by the commission. The bookkeeper shall
8provide each owner with access, at reasonable times during a
9racing day, to the amount of funds in the Horsemen's Account
10credited to that owner. At the close of a race meeting, the
11bookkeeper shall mail to each owner a record of deposits,
12withdrawals and transfers affecting the amount of funds in the
13Horsemen's Account credited to that owner.

14(f) The Horsemen's Account shall be audited periodically as
15deemed appropriate by the commission. There shall be at least
16one audit per year. Monthly statements shall be provided to the
17designee of the organization which represents a majority of the
18owners and trainers racing with the licensed corporation.

19(g) Fifty percent of the money earned as interest on funds
20in the Horsemen's Account shall be paid to the organization
21which represents a majority of the owners and trainers racing
22with the licensed corporation on a weekly basis. This amount
23shall be for the benefit of the horsemen as determined by the
24organization which represents the majority of the owners and
25trainers racing with the licensed corporation. The remaining 50%
26of the interest earned shall be for the benefit of the licensed
27corporation which shall have the responsibility to fund all
28costs associated with the administration of the fund. Interest
29each month must be earned in an amount equal to the Federal
30Reserve Discount Rate on the first day of the month.

1Section 236. Harness racing purse moneys.

2Each licensed harness horse racing association must place on
3deposit with the State Harness Racing Commission by March 1 of
4each year an irrevocable letter of credit equivalent to its
5average weekly purse total from the immediate prior year. The
6commission shall hold the letter of credit in trust for the
7harness horsemen racing at that licensed corporation in the
8event that purse checks are not issued or that insufficient
9funds are available to cover the purse checks.

10Section 237. Limitations on day and night racing.

11(a) For the purpose of this section day racing shall be
12racing days for which the starting time for the first race is at
13or before 2:00 p.m., and night racing shall be racing days for
14which the starting time for the first race is after 5:00 p.m.
15Day racing may not be conducted at any racing facility after
161985 on any comparable type racing day or holiday on which day
17racing was not conducted in 1985 unless all presently operating
18licensed corporations conducting day racing agree, in writing,
19to allow such day racing activities.

20(b) Night racing may not be conducted at any racing facility
21after 1985 on any comparable type racing night or holiday on
22which night racing was not conducted in 1985 unless all
23presently operating racing facilities conducting night racing
24agree, in writing, to allow night racing activities.

25(c) Each appropriate commission shall have the authority to
26grant exceptions to this section upon application by a licensed
27racing corporation for not more than five racing days per
28calendar year with respect to each licensed corporation. The
29provisions of this section shall be effective until July 1,
301991.]

1Section 3. The act is amended by adding a chapter to read:

2CHAPTER 2-A

3RACING OVERSIGHT

4Section 201-A. Bureau of Horse Racing.

5(a) Establishment.--The Bureau of Horse Racing is
6established within the board to regulate the operations of horse
7racing and pari-mutuel operations.

8(b) Jurisdiction.--The board shall have jurisdiction and
9regulatory authority over the following:

10(1) Pari-mutuel wagering and other horse racing
11activities in this Commonwealth.

12(2) A licensed business entity engaged in pari-mutuel
13horse racing activities.

14(3) Out-of-competition drug testing, which shall include
15the random drug testing of all horses entered in a race,
16stabled on the grounds or shipped into a licensed business
17entity's facility.

18(4) The conduct of horse racing in this Commonwealth.

19(c) Records.--The board shall maintain at its office the
20following:

21(1) All documents provided to or filed with the board.
22Documents may be designated as confidential in accordance
23with board policy.

24(2) A docket setting forth the names of all stockholders
25in a business entity, licensed under this act. The docket
26shall be available for public inspection during normal
27business hours of the board.

28(3) The number of shares held by each stockholder.

29(4) A complete record of proceedings of the board
30relating to horse racing and pari-mutuel wagering.

1(d) Rules and regulations.--The following shall apply:

2(1) All rules and regulations promulgated under the
3former act of December 11, 1967 (P.L.707, No.331), referred
4to as the Pennsylvania Thoroughbred Horse Racing Law, or the
5former act of December 22, 1959 (P.L.1978, No.728), referred
6to as the Pennsylvania Harness Racing Law, shall remain in
7effect except to the extent that they are in direct conflict
8with this act. The board may adopt, amend, revise or alter
9the rules and regulations as the board deems necessary.

10(2) The board shall promulgate rules and regulations
11necessary for the administration and enforcement of this act.
12Except as provided in paragraph (3), regulations shall be
13promulgated in accordance with law.

14(3) In order to facilitate the prompt implementation of
15this act, regulations promulgated by the board shall be
16deemed temporary regulations which shall not expire for a
17period of three years following publication. Temporary
18regulations shall not be subject to:

19(i) Sections 201, 202, 203, 204 and 205 of the
20Commonwealth Documents Law.

21(ii) The Regulatory Review Act.

22(iii) Sections 204(b) and 301(10) of the act of 
23October 15, 1980 (P.L.950, No.164), known as the 
24Commonwealth Attorneys Act.

25(4) Except for temporary regulations governing
26procedures for collecting and testing for illegal or
27performance enhancing substances and practices in horse
28racing, the board's authority to promulgate temporary
29regulations under paragraph (3) shall expire three years
30after the effective date of this section. Regulations adopted

1after this period shall be promulgated as provided by law.

2(e) Application.--The board shall develop a joint
3application for Category 1 licensees and licensed business
4entities.

5(f) Licenses.--Each license issued prior to January 1, 2014,
6shall remain in effect for the remainder of the term for which
7the license was issued unless revoked or suspended. After a
8license has expired, a license renewal or new license shall be
9issued under this act. A license renewal shall be subject to and
10made consistent with the requirements of 4 Pa.C.S. § 1326
11(relating to license renewals).

12Section 202-A. Additional powers.

13The board shall regulate horse racing at which pari-mutuel
14wagering is conducted and approve the number of racing days
15allocated to each licensed business entity. In addition to any
16other powers of the board:

17(1) The board shall promulgate regulations regarding
18medication rules.

19(2) The board shall require applicants under this act to
20submit to fingerprinting and photographing by the
21Pennsylvania State Police or by a local law enforcement
22agency capable of submitting fingerprints and photographs
23electronically to the Pennsylvania State Police utilizing the
24Integrated Automated Fingerprint Identification System and
25the Commonwealth Photo Imaging Network or in a manner
26provided by the Pennsylvania State Police. The Pennsylvania
27State Police shall submit fingerprints to the Federal Bureau
28of Investigation to verify the identity of applicants and to
29obtain criminal records. The board shall consider information 
30obtained pursuant to this provision for the purpose of
 

1screening applicants for fitness for licensure in accordance 
2with the provisions of this act. National criminal history 
3record information received by the board shall be handled and 
4maintained in accordance with Federal Bureau of Investigation 
5policy. Fingerprints and photographs obtained under this
6paragraph may be maintained by the board and the Pennsylvania
7State Police to enforce this act and for general law
8enforcement purposes. In addition to any other fee or cost
9assessed by the board, an applicant shall pay for the cost of
10fingerprinting and photographing. The board may exempt 
11certain categories of employment from this paragraph.

12(3) Two years following the effective date of this
13section, the board may adopt regulations to annually increase
14any fee, charge or cost authorized under this act.

15(4) The board or designated employee of the board shall 
16have the power to administer oaths and examine witnesses and 
17may issue subpoenas to compel attendance of witnesses and 
18production of all relevant and material reports, books, 
19papers, documents, correspondence and other evidence.

20Section 202.1-A. Budget.

21The board shall annually submit an itemized proposed budget
22to the Office of the Budget and the chairman of the
23Appropriations Committee of the Senate and the chairman of the
24Appropriations Committee of the House of Representatives
25consisting of amounts to be appropriated from the State Racing 
26Fund, the Pennsylvania Race Horse Development Fund or the 
27General Fund to administer and enforce this act.

28Section 203-A. License.

29After January 1, 2015, a licensed business entity shall
30conduct a horse racing meeting at the location designated and

1approved by the board under 4 Pa.C.S. §§ 1302 (relating to
2Category 1 slot machine license) and 1303 (relating to
3additional Category 1 slot machine license requirements).

4Section 204-A. (Reserved).

5Section 205-A. Number of horse racing corporations.

6(a) Standardbred horse racing.--No more than four business
7entities shall be licensed to conduct a pari-mutuel meet. No
8business entity licensed under this act to conduct standardbred
9horse racing with pari-mutuel wagering shall be licensed to
10conduct thoroughbred horse racing with pari-mutuel wagering.

11(b) Thoroughbred horse racing.--No more than three business
12entities shall be licensed by the board to conduct a pari-mutuel
13meet. No business entity licensed under this act to conduct
14thoroughbred horse racing with pari-mutuel wagering shall be
15licensed to conduct standardbred horse racing with pari-mutuel
16wagering.

17Section 206-A. Department of Revenue.

18The Department of Revenue shall provide financial
19administration of pari-mutuel wagering under this act in
20accordance with Department of Revenue regulations and
21regulations of the board. The Department of Revenue shall
22prescribe the form and system of accounting to be used by
23licensed business entities, and may access and examine records,
24equipment and other information relating to pari-mutuel
25wagering.

26Section 207-A. Allocation of racing days.

27(a) General rule.--Racing shall be conducted consistent with
284 Pa.C.S. § 1303 (relating to additional category 1 slot machine
29license requirements).

30(b) Certification.--The board shall submit to the Secretary

1of Revenue the approved number of racing days for each licensed
2business entity, including the following information:

3(1) the names and addresses of the licensed business
4entities;

5(2) the names and addresses of the owners, officers and
6general managers of the licensed business entities; and

7(3) any other information the board deems appropriate.

8(c) Cancellation.--

9(1) If a racing day is canceled by a licensed business 
10entity for reasons beyond the licensed business entity's 
11control, the board shall grant the licensed business entity 
12the right to conduct that racing day in the same or the next 
13ensuing calendar year, if schedules permit.

14(2) The board may require the cancellation of a race if
15it is determined that less than six horses have entered a
16race.

17Section 208-A. (Reserved).

18Section 209-A. Licenses for horse racing meetings.

19(a) Procedure and terms.--

20(1) After January 1, 2015, a business entity desiring to
21conduct horse racing meetings for which a Category 1 license
22has been issued and at which pari-mutuel wagering is
23permitted may apply to the board for a license or the renewal
24of an existing license.

25(2) A licensed business entity shall have the privilege
26to conduct a horse racing meeting at which pari-mutuel
27wagering is permitted. A license to conduct a horse racing
28meeting shall not be a property right.

29(3) The board may revoke or suspend the license of a
30licensed business entity if the board finds that the business

1entity, its owners, officers, managers or agents, has not
2complied with this act and regulations promulgated in
3accordance with this act.

4(4) A licensed business entity may not transfer a
5license without the approval of the board.

6(b) Conditions.--Each horse racing license shall be issued
7upon the following conditions:

8(1) A horse racing meeting at which pari-mutuel wagering
9is conducted shall be regulated by the board.

10(2) The conduct of pari-mutuel wagering shall also be
11regulated by the Department of Revenue.

12(3) The licensed business entity prints in its racing
13programs the procedure for filing a complaint with the board.

14(c) Applications.--Applications for a licensed business
15entity shall be in the form prescribed by the board and shall
16contain information as the board may require.

17(d) Grounds for denial, revocation or suspension.--The board
18may deny, revoke or suspend the license of a business entity, if
19it determines that:

20(1) Any owner, officer, director or manager of the
21business entity applying for a license or of any business
22entity which participates in the management of the affairs of
23the applicant, or which leases to the licensed business
24entity the track where it shall operate:

25(i) has been convicted of bookmaking or other forms
26of illegal gambling;

27(ii) has been convicted of any fraud or
28misrepresentation in connection with racing or breeding;

29(iii) has been convicted of any violation or attempt
30to violate any law, rule or regulation of any horse

1racing jurisdiction, for which suspension from horse
2racing might be imposed in that jurisdiction;

3(iv) has violated any rule, regulation or order of
4the board;

5(v) has been convicted of a felony; or

6(vi) has furnished the board with false or
7misleading information.

8(2) The experience, character or fitness of any owner,
9officer, director or manager of the licensed business entity
10is such that the participation of the person in horse racing
11or related activities would be inconsistent with the public
12interest or with the best interests of horse racing.

13(3) The licensed business entity does not have use of
14the racetrack or racetrack enclosure in accordance with the
15requirements of 4 Pa.C.S. Pt. II (relating to gaming).

16(4) A licensed business entity has commingled horsemen's
17funds in violation of section 235-A(c) or has refused to
18place on deposit a letter of credit under section 236-A.

19(5) The board determines that the licensed business
20entity has failed to properly maintain its racetrack and
21racetrack enclosure in good condition or to provide adequate
22capital improvements to the racetrack and racetrack enclosure
23as required under this act and 4 Pa.C.S. § 1404 (relating to
24distributions from licensee's revenue receipts).

25(e) Conditional licenses.--Pending a final determination
26under this section, the board may issue a conditional license
27upon such terms and conditions as are necessary to effectuate
28the provisions of this act.

29Section 210-A. (Reserved).

30Section 211-A. Financial and employment interests.

1(a) General rule.--A business entity applying for a license
2or a licensed business entity shall comply with the provisions
3of 4 Pa.C.S. §§ 1512 (relating to financial and employment 
4interests), 1512.1 (relating to additional restrictions) and 
51513 (relating to political influence).

6(b) Gifts.--No owner, officer, manager or employee of an
7applicant or licensed business entity or their spouses, parents,
8fathers-in-law, mothers-in-law, siblings, children, sons-in-law
9or daughters-in-law shall accept gifts from breeders, owners,
10trainers or other individuals who participate in the conduct of
11horse racing in this Commonwealth.

12Section 212-A. Officials at horse racing meetings.

13All qualified judges and starters shall be approved by the
14board. For standardbred horse racing meetings, no person shall
15be approved as a judge or starter unless the person is licensed
16by the United States Trotting Association as a duly qualified
17pari-mutuel racing meeting official. All officials shall enforce
18the law and shall provide written reports of the activities and
19conduct of horse racing meetings to the board. The compensation
20of these officials shall be paid by the board.

21Section 213-A. Licenses for individuals.

22(a) General rule.--The board shall develop a licensing
23classification system for the regulation of vendors, trainers,
24jockeys, drivers, horsemen's organizations, horse owners and
25other individuals participating in horse racing and all other
26persons required to be licensed as determined by the board. The
27license shall not be a property right.

28(b) Fee.--The board shall fix and may establish classes for
29application fees to be paid by persons or licensed business
30entities. A license fee shall not exceed $1,000. All fees shall

1be paid to the board and deposited into the State Racing Fund.

2(c) Application.--The application shall be in the form and
3contain the information as the board may require.

4(d) Renewal.--All licenses shall be subject to renewal every
5three years. Nothing in this act shall be construed to relieve a
6licensee of the affirmative duty to notify the board of any
7changes relating to the status of its license or to any other
8information contained in the application materials on file with
9the board. The application for renewal shall be submitted at
10least 60 days prior to expiration of the license and shall
11include an update of the information contained in the initial
12application and any prior renewal applications and the payment
13of any renewal fee required by the board. A license for which a
14completed renewal application and fee, if required, has been
15received by the board shall continue in effect unless and until
16the board sends written notification to the holder of the
17license that the board had denied the renewal of the license.

18(e) Licenses.--The board may issue one of the following:

19(1) A temporary license for four months within a 12-
20month period pending a final determination.

21(2) A conditional license upon the terms and conditions
22as necessary to administer this act.

23(f) Processing and issuance.--The board shall adopt
24regulations to fix the manner by which licenses are processed
25and issued.

26(g) Denial.--The board may deny a license under this
27section, if it determines that the applicant:

28(1) Has been convicted of bookmaking or other forms of
29illegal gambling.

30(2) Has been convicted of any fraud or misrepresentation

1in connection with racing or breeding.

2(3) Has been convicted of any violation or attempt to
3violate any law, rule or regulation of horse racing in any
4jurisdiction, for which suspension from horse racing might be
5imposed in that jurisdiction.

6(4) Has been convicted of an offense under 18 Pa.C.S. §
75511 (relating to cruelty to animals).

8(5) Has violated any rule, regulation or order of the
9board.

10(6) Has been convicted of an offense relating to fixing
11races.

12(7) Has been convicted of a felony offense.

13(8) Has failed to comply with payment requirements under
14section 304 relating to testing for medication.

15(9) The experience or character of any applicant or
16licensee is such that the participation in horse racing would
17be inconsistent with the best interest of horse racing.

18(h) Inspection.--The board shall have the right to inspect
19all contracts between licensed business entities and vendors for
20goods and services. The board shall adopt regulations to require
21vendors to disclose all principal owners and officers and a
22description of their interests in the vendors' business. Failure
23to disclose this information shall constitute grounds to deny,
24to revoke or to suspend any vendor's license issued under this
25act.

26(i) Suspension, revocation and refusal to renew.--The board
27may suspend, refuse to renew or revoke a license issued under
28this section, if:

29(1) The applicant or licensee:

30(i) has been convicted of bookmaking or other form

1of illegal gambling;

2(ii) has been convicted of any fraud or
3misrepresentation in connection with racing or breeding;

4(iii) has been convicted of any violation or attempt
5to violate any law, rule or regulation of any horse
6racing jurisdiction for which suspension from horse
7racing might be imposed in that jurisdiction;

8(iv) has been convicted of an offense under 18
9Pa.C.S. § 5511.

10(v) has violated any rule, regulation or order of
11the board;

12(vi) has been convicted of a felony offense;

13(vii) has failed to comply with payment requirements
14under section 304; or

15(viii) has furnished the board with false or
16misleading information or that the information contained
17in the application or any renewal application is no
18longer true and correct.

19(2) The experience or character of any applicant or
20licensee is such that the participation of the person in
21horse racing or related activities would be inconsistent with
22the public interest or with the best interests of horse
23racing.

24(3) The applicant or licensee has been convicted of an
25offense related to fixing races unless the conviction has
26been overturned on appeal under the laws of the jurisdiction
27of the original finding.

28(4) In the event of a revocation or failure to renew,
29the applicant's authorization to conduct previously approved
30activity shall immediately cease and all fees paid in

1connection therewith shall be deemed to be forfeited. In the
2event of a suspension, the applicant's authorization to
3conduct the previously approved activity shall immediately
4cease until the board has notified the applicant that the
5suspension is no longer in effect.

6(j) Hearings.--The board may suspend a license under
7subsection (i) pending a hearing on the matter.

8(k) Reciprocity.--The board shall not grant licenses to
9citizens of states that prohibit the grant of licenses to
10citizens of this Commonwealth on the basis of in-state
11preference.

12Section 213.1-A. Providers.

13(a) Totalisator provider.--Beginning at the renewal of an 
14existing contract or execution of a new contract, a person that 
15provides totalisator services to a licensed business entity 
16located in this Commonwealth shall be licensed by the board and 
17remit an annual license fee not to exceed $100,000. The license 
18fee shall be deposited in the State Racing Fund. The provider 
19shall submit information on operating systems and procedures as 
20required by the board.

21(b) Medical providers.--A manufacturer, wholesaler, 
22distributor or vendor of any equine drug, medication,
23therapeutic substance or metabolic derivative purchased by or
24delivered to a licensee or other individual participating in
25horse racing in this Commonwealth by means of Internet, mail
26delivery, in person delivery or other means shall be licensed by 
27the board. The board shall develop a fee schedule to licensed 
28medical providers under this subsection.

29Section 214-A. Power of board to impose fines.

30(a) General rule.--The board may impose administrative fines

1upon any licensed or unlicensed business entity, association or
2person participating in horse racing at which pari-mutuel
3wagering is conducted, other than as a patron, for a violation
4of any provision of this act or rule or regulation of the board,
5not exceeding $100,000 for each violation. Each day may be
6considered a separate violation. Fines shall be deposited in the
7State Racing Fund and may be appropriated for the enforcement of
8this act.

9(b) Interests.--

10(1) No owner, officer or employee of a licensed business
11entity or their spouses, parents, fathers-in-law, mothers-in-
12law, siblings, children, sons-in-law or daughters-in-law
13shall have any direct or indirect interest in a race horse
14that is participating in a race at a meet at which the person
15or relative listed under this paragraph holds any interest in
16the licensed business entity conducting the meet or in the
17racetrack facility.

18(2) The board shall impose a fine upon any person for a
19violation of this subsection in accordance with subsection
20(a).

21Section 215-A. Security personnel.

22(a) General rule.--The board shall require licensed business
23entities to employ persons as security personnel. Designated
24security personnel may interrogate, eject or exclude from the
25racetrack or enclosure any individual suspected of violating
26this act.

27(b) Penalty.--An individual found within a race track
28enclosure after having been refused admission thereto or ejected
29therefrom shall, upon conviction, be guilty of a summary offense
30and be sentenced to pay a fine of not more than $500.

1Section 216-A. Interstate simulcasting.

2The board may approve the application of a licensed business
3entity to electronically televise simulcasts of horse races to
4be operated by the licensed business entity at the race track
5enclosure where a horse race is being conducted during, between,
6before or after posted races for that racing day. Each simulcast
7of horse races from outside this Commonwealth shall comply with
8the Interstate Horseracing Act of 1978 (Public Law 95-515, 15
9U.S.C. § 3001 et seq.). All forms of pari-mutuel wagering under
10section 221-A shall be allowed on horse races to be televised by
11simulcasting. The board shall promulgate regulations regarding
12the wagering and the operation of interstate simulcasting of 
13horse racing. All money wagered on horse races shall be computed
14in the amount of money wagered each racing day for purposes of
15taxation under section 222-A.

16Section 216.1-A. Televised simulcastings.

17(a) Host licensees.--Upon request by a licensed business
18entity, the board may designate the entity as a host licensee,
19authorized to maintain common pari-mutuel pools on international
20and interstate races transmitted to and from the racetrack
21enclosures within this Commonwealth. All simulcasts of horse
22races shall comply with the provisions of the Interstate
23Horseracing Act of 1978 (Public Law 95-515, 15 U.S.C. § 3001 et
24seq.) and the laws of each state involved, placed or transmitted
25by an individual in one state via telephone, Internet or other
26electronic media and accepted and maintained in common pari-
27mutuel pools. The designation as a host licensee for
28international and interstate simulcast races shall be limited to
29licensed business entities which comply with 4 Pa.C.S. § 1303(d)
30(relating to additional Category 1 slot machine license

1requirements).

2(b) Simulcasts.--The following apply:

3(1) Cross simulcasting of the races described in
4subsection (a) shall be permitted if all amounts wagered on
5the races in this Commonwealth are included in common pari-
6mutuel pools. A host licensee seeking permission to cross
7simulcast must obtain approval from the board.

8(2) Forms of pari-mutuel wagering shall be allowed on
9horse races to be televised by simulcasting. The board may
10permit pari-mutuel pools in this Commonwealth to be combined
11with pari-mutuel pools created under the laws of another
12jurisdiction and may permit pari-mutuel pools created under
13the laws of another jurisdiction to be combined with pari-
14mutuel pools in this Commonwealth. The board shall promulgate
15regulations necessary to regulate wagering on televised
16simulcasts.

17(c) Taxation.--Money wagered by patrons in this Commonwealth
18on horse races shall be computed by the amount of money wagered
19each racing day for purposes of taxation under section 222-A.
20Thoroughbred races shall be considered a part of a thoroughbred
21horse racing meeting and standardbred horse races shall be
22considered a part of a standardbred horse racing meeting.

23Section 217-A. (Reserved).

24Section 218.1-A. Place and manner of conducting pari-mutuel
25wagering.

26(a) Wagering location.--A licensed business entity shall
27provide a location during a horse racing meeting within the
28racetrack enclosure where the licensed business entity shall
29operate the pari-mutuel system of wagering by its patrons on the
30results of horse races held at the racetrack or televised to the

1racetrack enclosure by simulcasting under section 216.1-A. The
2licensed business entity shall erect a sign or board compatible
3with the totalisator systems which shall display all of the
4following:

5(1) The approximate straight odds on each horse in any
6race.

7(2) The value of a winning mutuel ticket, straight,
8place or show on the first three horses in the race.

9(3) The elapsed time of the race.

10(4) The value of a winning daily double ticket, if a
11daily double is conducted, and any other information that the
12board deems necessary to inform the general public.

13(b) Equipment.--The board may test and examine the equipment
14to be used for the display of the information under subsection
15(a).

16(c) Electronic wagering.--A licensed business entity may
17operate electronic wagering on horse racing in accordance with
18all of the following:

19(1) Messages to place wagers shall be to a place within
20the racetrack enclosure.

21(2) Money used to place wagers under this subsection
22shall be on deposit in an amount sufficient to cover the
23wager at the racetrack where the account is opened.

24The board may promulgate regulations necessary to regulate
25electronic wagering for horse racing.

26(d) Taxation.--Money wagered as a result of electronic
27wagering shall be included in the amount wagered each racing day
28for purposes of taxation under section 222-A and shall be
29included in the same pari-mutuel pools for each posted race.
30Electronic wagering shall be operated by the licensed business

1entity or by a duly licensed vendor.

2(e) Conditions.--

3(1) A licensed business entity shall only accept and
4tabulate a wager by a direct request via electronic media
5from the holder of an electronic wagering account. Only the
6holder of the electronic wagering account shall place a
7wager.

8(2) Any person who violates this subsection commits a
9misdemeanor of the first degree.

10(f) Primary market area.--

11(1) No licensed business entity may accept a wager or
12establish electronic wagering for any person located in the
13primary market area of a racetrack, other than the racetrack
14at which the licensed business entity is conducting a racing
15meet.

16(2) Nothing in this subsection shall be construed to
17prohibit a licensed business entity from accepting a wager
18from or establishing an electronic wagering account for any
19person located in the primary market area of the racetrack
20where the licensed business entity is conducting a meet. If
21two tracks share the primary market area, both racetracks
22shall have equal rights to the market in the shared area.

23Section 218.2-A. Pari-mutuel wagering at nonprimary locations.

24(a) Nonprimary locations.--The following shall apply:

25(1) Notwithstanding any other provisions of this act,
26beginning January 2015, the board may approve a licensed
27business entity to continue to operate a nonprimary location
28where it has conducted pari-mutuel wagering on horse races
29conducted by the licensed business entity. The licensed
30business entity may continue to conduct pari-mutuel wagering

1at the location on horse races conducted by another licensed
2business entity, which horse races may be televised to the
3location or on horse races simulcast to the location under
4section 216-A, provided that:

5(i) A licensed business entity has not established a
6nonprimary location within the primary market area of any
7racetrack other than a racetrack where the licensed
8business entity conducts racing meetings. Establishment
9of a nonprimary location by a licensed business entity
10within the primary market area of a racetrack where the
11licensed business entity conducts racing meetings shall
12require approval of the board.

13(ii) A licensed business entity has not established
14a nonprimary location within the secondary market area of
15a racetrack if the nonprimary location is approved by the
16board.

17(iii) A licensed business entity has not established
18a nonprimary location in an area outside the primary and
19secondary market areas of any racetrack if the location
20is approved by the board.

21(2) Except as provided under paragraph (1), no
22additional licenses shall be permitted.

23(3) The board shall annually conduct inspections of the
24primary facility.

25(4) The regulatory authority of the board shall apply to
26nonprimary locations and any employees or vendors of the
27licensed business entity establishing the nonprimary
28location.

29(b) (Reserved).

30(c) Taxation and records.--Money wagered at all primary and

1nonprimary locations under this act shall be included in common
2pari-mutuel pools. Money wagered by patrons on the races shall
3be computed by the amount of money wagered each racing day for
4purposes of taxation under section 222-A. The licensed business
5entity conducting the racing meeting and maintaining the pari-
6mutuel pools shall maintain accurate records of the amount
7wagered in each pool from every primary and nonprimary location.

8(d) Retention.--Money retained under section 222-A(e) shall
9be calculated for each location where pari-mutuel wagering is
10being conducted. If wagering has taken place at a nonprimary
11location where the wagering is conducted by a licensed business
12entity other than the licensed business entity conducting the
13racing meeting, the licensed business entity conducting the
14racing meeting shall retain any money to which it is entitled by
15agreement. The licensed business entity conducting the meeting
16shall pay over the balance of the retained money to the licensed
17business entity conducting the wagering at the nonprimary
18location.

19(e) Payment of purses.--A licensed business entity
20conducting a racing meeting where pari-mutuel wagering is
21conducted at one or more nonprimary locations shall distribute
22money to the horseman's organization representing a majority of
23owners and trainers at its racetrack, or in accordance with the
24practice of the parties, to be used for payment of purses at
25that racetrack, as follows:

26(1) Except as provided for in paragraphs (2), (3), (4)
27and (5), an amount equal to but not less than 6% of the daily
28gross wagering handle on the races at a nonprimary location.

29(2) When the gross wagering handle on the races at a
30nonprimary location on a given day is less than $30,000, the

1percentage may not be less than 3%.

2(3) When the gross wagering handle on the races at a
3nonprimary location on a given day is between $30,000 and
4$75,000 inclusive, the percentage may not be less than 4.75%.

5(4) Whenever a nonprimary location is within the primary
6market area of a licensed business entity other than the
7licensed business entity conducting the races, the applicable
8percentage shall be distributed one-half to the horseman's
9organization representing a majority of owners and trainers
10at the racetrack or in accordance with the practice of the
11parties.

12(5) Where the racing meeting is being conducted to be
13used for the payment of purses at the racetrack and one-half
14to the horseman's organization, or in accordance with the
15practice of the parties, at the racetrack within the primary
16market area to be used for the payment of purses at the
17racetrack.

18Nothing in this subsection shall be construed to prevent a
19licensed business entity from agreeing to distribute amounts
20greater than the percentages set forth in this subsection.
21However, if no alternative agreement has been reached, the total
22percentage for purses under this subsection shall be paid in
23accordance with the minimum percentages set forth in this
24subparagraph.

25(f) Other payments.--Notwithstanding any other provision of
26this act, a nonprimary location may be established within the
27primary market area of a racetrack by agreement between the
28licensed business entity and the horseman's organization
29representing a majority of the owners and trainers at the
30racetrack specifying the total percentage of handle wagered at

1the nonprimary location to be distributed to the horseman's
2organization, or in accordance with the practice of the parties,
3to be used for the payment of purses at that racetrack. If no
4agreement is reached covering the locations, the total
5percentage to be paid for purses shall be the same as that
6applied to on-track wagering at the racetrack located within the
7primary market area.

8Section 219-A. Books and records of pari-mutuel wagering.

9Every Category 1 licensed facility that conducts a horse
10racing meeting at which pari-mutuel wagering is authorized,
11shall maintain books and records that clearly show by separate
12record the total amount of money contributed to every pari-
13mutuel pool. The Department of Revenue or its authorized
14representative shall have access to examine all books and
15records and ascertain whether the proper amount due to the State
16is being paid by the licensed business entity.

17Section 220-A. Filing of certain agreements with the board.

18A licensed business entity shall promptly file with the board
19any lease agreement concerning any concession, labor management
20relation, hiring of designated classes of officers, employees or
21contractors specified by the board or any other contract or
22agreement as the board may prescribe.

23Section 221-A. Tax.

24(a) Fund.--There is hereby established in the State Treasury
25the State Racing Fund. A licensed business entity that conducts
26horse racing meetings shall pay a tax to the Department of
27Revenue for deposit in the State Racing Fund.

28(b) Tax rate.--The tax imposed on a licensed entity shall be
291.5% of the amount wagered each racing day and 2.5% of the total
30amount on an exacta, daily double, quinella and trifecta wager.

1(c) Expenditures.--Funds collected and deposited under
2subsection (b) and any interest shall be used solely for the
3administration and enforcement of this act including:

4(1) Funds to the board in an amount appropriated by the
5General Assembly.

6(2) Funds to the Department of Revenue in an amount
7appropriated by the General Assembly.

8(d) Remainder.--The remainder of the money shall be
9distributed as follows:

10(1) An amount equivalent to 1% of the amount wagered
11each racing day at thoroughbred horse race meetings shall be
12paid by the Department of Revenue from the State Racing Fund
13for credit to the Pennsylvania Breeding Fund.

14(2) An amount equivalent to 1.5% of the amount wagered
15each racing day at standardbred horse race meetings shall be
16paid by the Department of Revenue from the State Racing Fund
17through the Department of Revenue for credit to the
18Pennsylvania Sire Stakes Fund.

19(3) The remainder of the amount wagered each racing day
20shall be deposited in the State Racing Fund, for
21appropriation for the promotion of horse racing.

22Section 222-A. Pari-mutuel pool distribution.

23(a) Distribution.--A licensed business entity shall
24distribute money in a pari-mutuel pool to the holders of winning
25ticket presented for payment before the first day of April of
26the year following the date of purchase. After April 1 of the
27year following the year of purchase, a licensed business entity
28shall forward the necessary funds held for uncashed tickets to
29the Department of Revenue. The funds shall be deposited into the
30State Racing Fund.

1(b) Remainder.--The remainder of the money shall be retained
2by the licensed entity in the following manner:

3(1) Seventeen percent of the money plus the breakage
4from regular wagering pools or 19% of the money plus the
5breakage from regular wagering pools for licensed entities
6whose daily total in all pari-mutuel pools averaged less than
7$300,000.

8(2) Twenty percent of the money plus breakage from the
9exacta, daily double, quinella and other wagering pools as
10determined by the board.

11(3) At least 26%, but no more than 35%, from the
12trifecta or other wagering pools as determined by the board.

13(c) Retention.--A licensed business entity may retain less
14percentages upon approval of the board.

15(d) Definitions.--As used in this section, the term
16"breakage" shall mean the odd cents of redistributions to be
17made on contributions to pari-mutuel pools exceeding a sum equal
18to the next lowest multiple of ten.

19Section 223-A. Pennsylvania Breeding Fund.

20(a) Establishment.--There is hereby created a restricted
21account in the State Racing Fund to be known as the Pennsylvania
22Breeding Fund which shall consist of the money deposited under
23section 222-A and which shall be distributed by the Department
24of Revenue.

25(b) Awards from the Pennsylvania Breeding Fund.--The
26Department of Revenue shall distribute money from the
27Pennsylvania Breeding Fund as follows:

28(1) An award of 30% of the purse earned by every
29registered Pennsylvania-bred thoroughbred racing horse sired
30by a registered Pennsylvania sire at the time of conception

1of the registered Pennsylvania-bred thoroughbred horse, or an
2award of 20% of the purse earned by every registered
3Pennsylvania-bred thoroughbred horse sired by a nonregistered
4sire, which finishes first, second or third in any race
5conducted by a licensed business entity under this act shall
6be paid to the breeder of said registered Pennsylvania-bred
7thoroughbred horse. A single award under this paragraph may
8not exceed 1% of the total annual fund money.

9(2) An award of 10% of the purse earned by any
10Pennsylvania-bred thoroughbred horse which finishes first,
11second or third in any race conducted by a licensed business
12entity under this act shall be paid to the owner of the
13registered Pennsylvania sire which regularly stood in
14Pennsylvania at the time of conception of the Pennsylvania-
15bred thoroughbred horse. A single award under this paragraph
16may not exceed 0.5% of the total annual fund money.

17(3) An award of 10% of the purse earned by any
18registered Pennsylvania-bred thoroughbred horse which
19finishes first in any race conducted by a licensed business
20entity under this act not restricting entry to registered
21Pennsylvania-bred thoroughbred horses shall be paid to the
22licensed owner of said registered Pennsylvania-bred
23thoroughbred horse at the time of winning. A single award
24under this paragraph may not exceed 0.5% of the total annual
25fund money.

26(c) Purses from Pennsylvania Breeding Fund.--Up to one-fifth
27of the total of the estimated Pennsylvania Breeding Fund money
28remaining each year after the deduction of expenses related to
29the administration and development of the Pennsylvania Breeding
30Fund program and the payment of breeder, stallion and owner

1awards, shall be divided among the licensed business entities
2that conduct thoroughbred horse racing meetings in direct
3proportion to the rate by which each licensed business entity
4generated the fund money during the previous year to be used
5solely for purses for Pennsylvania Breeding Fund stakes races
6which restrict entry to registered Pennsylvania-bred
7thoroughbred horses.

8(d) Remaining funds.--The Pennsylvania Breeding Fund money
9remaining following disbursements as directed in subsection (b)
10(1), (2) and (3) and subsection (c) shall be divided among the
11licensed business entities that conduct thoroughbred horse
12racing meetings in direct proportion to the rate by which each
13licensed business entity generated the fund money during the
14previous year to be used for purses as follows:

15(1) Claiming and nonclaiming Pennsylvania Breeding Fund
16races which restrict entry to registered Pennsylvania-bred
17thoroughbred horses.

18(2) Claiming and nonclaiming Pennsylvania Breeding Fund
19races which prefer registered Pennsylvania-bred thoroughbred
20horses as starters. In these races, should eight or more
21registered Pennsylvania-bred horses pass the entry box, the
22race shall be considered closed to horses other than
23registered Pennsylvania-bred thoroughbred horses.

24(e) Funds not expended.--Pennsylvania Breeding Fund money
25due licensed business entities, as outlined in subsections (c)
26and (d), but not expended during the calendar year may be
27carried forth in the fund on the accounts of the licensed
28business entities to be expended during the succeeding year in
29addition to the business entities' fund money annually due them
30for purses.

1(e.1) Committee.--There is hereby established the
2Pennsylvania Breeding Fund Advisory Committee. The committee
3shall consist of members, who are residents of Pennsylvania, to
4be appointed by the board by June 1 of each year. The committee
5shall consist of two members of the Pennsylvania Horse Breeders'
6Association, one member from the licensed business entities, one
7member from the association representing horsemen racing in
8Pennsylvania and one member of the board. If a member other than
9the board member has not been recommended by June 1 of each
10year, the board shall make an appointment for the organization
11failing to so recommend a member of the committee. The committee
12shall assist and advise the board under the provisions of this
13act but shall have no power in administering the fund. Members
14of the advisory committee shall not receive compensation or
15reimbursements for participation on the committee.

16(f) Pennsylvania Horse Breeders' Association.--The board 
17shall contract with the Pennsylvania Horse Breeders' Association 
18as the organization responsible body for the registration and 
19records of Pennsylvania-bred horses. The Pennsylvania Horse 
20Breeders' Association shall advise the board when called upon 
21and shall determine the qualifications for Pennsylvania-bred 
22thoroughbred horses and Pennsylvania sires. Registration and 
23records of the association shall be official records of the 
24Commonwealth. At the close of each calendar year, the 
25Pennsylvania Horse Breeders' Association shall submit to the 
26board for its approval an itemized budget of projected expenses 
27for the ensuing year relating to the administration and 
28development of the Pennsylvania Breeding Fund program. The board 
29shall reimburse the Pennsylvania Horse Breeders' Association for 
30those expenses actually incurred in the administration and

1development of the Pennsylvania Breeding Fund program from the
2Pennsylvania Breeding Fund, no more than on a quarterly basis.
3No more than 5% of the fund may be utilized for administrative
4costs.

5Section 224-A. Pennsylvania Sire Stakes Fund.

6(a) Establishment.--There is created a restricted account in
7the State Racing Fund to be known as the Pennsylvania Sire
8Stakes Fund which shall consist of the money deposited under
9section 222-A and which shall be administered by the board.

10(b) Distribution and use of funds.--Funds shall be
11distributed as follows:

12(1) Sixty percent of the money remaining in the excess
13fund account of the Pennsylvania Sire Stakes Fund at the end
14of the calendar year in which this subsection is enacted
15shall be distributed to licensed business entities that
16conduct standardbred horse racing meetings to be used in the
17next succeeding calendar year as purse money for
18Pennsylvania-sired horses. The remaining 40% of the money in
19the excess fund account at the end of the calendar year of
20the enactment of this subsection, together with the interest
21earned on that money, shall be distributed to licensed
22business entities that conduct standardbred horse racing
23meetings to be used in the next succeeding calendar year
24following the next succeeding calendar year as purse money
25for Pennsylvania-sired horses.

26(2) After deduction of sufficient funds to cover the
27board's cost of administration, 80% of all remaining money in
28the Pennsylvania Sire Stakes Fund at the end of the calendar
29year shall be distributed to licensed business entities that
30conduct standardbred horse racing meetings to be used as

1purse money for Pennsylvania-sired horses. The board may
2allocate up to a total of 40% of the amount to be distributed
3to licensed business entities in a calendar year for use for
4a series of championship final races at the race tracks of
5licensed business entities that conduct standardbred horse
6racing meetings. The board shall distribute the money to
7these championship final races in an equal amount for each
8sex, age and gait for two-year-old and three-year-old
9trotters and pacers based on conditions establishing
10eligibility to these final events. No pari-mutuel
11standardbred racetrack shall be awarded more than 50% of the
12championship final races in any calendar year. The board
13shall schedule these final events so as to evenly alternate
14classes at each race track each year. After the allocation
15for the championship final races has been determined, the
16remaining funds to be distributed to licensed business
17entities that conduct standardbred horse racing meetings
18shall be divided equally among the licensed business
19entities. Each licensed business entity shall divide the
20funds received equally for each of:

21(i) four two-year-old races; one pace for colts, one
22pace for fillies, one trot for colts and one trot for
23fillies; and

24(ii) four three-year-old races; one pace for colts,
25one pace for fillies, one trot for colts and one trot for
26fillies.

27(c) Purse money.--Each allotment shall provide purse money
28for the respective races. The purse money shall be in addition
29to any entry fees or other funds available.

30(d) Entry restriction.--Entry for these races shall be

1limited to standardbred horses which were sired by a
2standardbred stallion regularly standing in Pennsylvania and
3each race shall be designated a Pennsylvania sire stakes race.
4The board shall adopt regulations as necessary to administer the
5entry restriction.

6Section 225-A. Fair Fund proceeds.

7(a) Distribution.--The Department of Agriculture shall
8distribute money in the Fair Fund annually, on or before March
91, for reimbursement for each county agricultural society and
10each independent agricultural society conducting standardbred
11horse racing during its annual fair, other than races for two-
12year-old and three-year-old colts and fillies, an amount of
13money equal to that used during their annual fair as purse money
14for standardbred horse racing, track and stable maintenance,
15starting gate rental and the cost of all standardbred horse
16racing officials required during their annual fair. The
17reimbursement amount may not be more than $13,000, a minimum of
18$4,000 of which must be used for purse money and the balance of
19the allotment per fair, not used for purse money over the
20minimum $4,000 allotment, shall be used for the specific
21purposes referenced above or otherwise the allotment shall be
22retained in the fund.

23(b) Inspection.--The Department of Agriculture shall
24annually inspect each track facility at a county fair and advise
25each operating fair about track maintenance which is necessary
26to ensure adequate racing surface during the course of scheduled
27fairs and racing events. If it is the opinion of the Department
28of Agriculture that the fair society or event sponsor is not
29adequately financing track maintenance, the Department of
30Revenue shall surcharge the Fair Fund account of the fair

1society or event sponsor to effectuate the remediation.

2Section 226-A. Hearing.

3If the board denies any license application or revokes or
4suspends any license granted, an applicant or licensee may
5demand, within ten days after notice of the decision of the
6board, a hearing before the board. The provisions of 2 Pa.C.S.
7Chs. 5 Subch. A (relating to practice and procedure of
8Commonwealth agencies) and 7 Subch. A (relating to judicial
9review of Commonwealth agency action) shall apply.

10Section 227-A. (Reserved).

11Section 228-A. Prohibition of wagering.

12No board member or employee of the board shall wager upon the
13outcome of any horse race conducted at or simulcast to a track
14at which pari-mutuel wagering is conducted by any licensed
15business entity of the board. No licensed business entity shall
16permit any person who is actually and apparently under 18 years
17of age to wager at a racing meeting conducted by the licensed
18business entity. No licensed business entity shall permit any
19person who is under 18 years of age to attend a horse racing
20meeting conducted by the licensed business entity unless the
21person is accompanied by a parent or guardian. This section
22shall not be construed to prohibit persons under 18 years of
23age, who are legally employed, from being upon the race track
24premises for the sole purpose of engaging in the performance of
25their duties as employees.

26Section 229-A. Veterinarians and State stewards.

27(a) General rule.--The board shall have the authority to
28contract with licensed veterinarians, stewards and other
29personnel deemed appropriate by the board to serve at each
30meeting conducted by a licensed business entity. The board may

1employ other individuals as shall be necessary to carry out the
2responsibilities of this section.

3(b) Costs and compensation.--The costs and compensation of
4the horse racing veterinarians, State stewards and other
5personnel shall be fixed and paid by the board from the State
6Racing Fund.

7(c) Agricultural society horse racing.--The department of
8agriculture may promulgate regulations to oversee horse racing
9conducted by a county agricultural society or an independent
10agricultural society, as provided for under section 5(1)(iii)
11and (iv) of the act of July 8, 1986 (P.L.437, No.92), known as 
12the Pennsylvania Agricultural Fair Act.

13Section 230-A. (Reserved).

14Section 231-A. Promotions and discounts.

15The board may approve a licensed business entity to issue a
16free pass, card or badge for a special promotional program and
17seasonal discount ticket program.

18Section 232-A. (Reserved).

19Section 233-A. Monitoring of wagering on video screens.

20A licensed business entity conducting pari-mutuel wagering
21shall display on video screens the approximate odds or
22approximate will-pays on each horse for each race as well as a
23combination of races, including quinellas, exactas, perfectas
24and any other combination or pool of races. A display of
25approximate odds or approximate will-pays is not required where
26the wager is on horses in four or more races, such as "Pick 4,
27Pick 5 or Pick 6." In addition to displaying the amount of money
28wagered, the approximate odds or approximate will-pays on each
29horse or combination of horses must be shown on video screens in
30each wagering division. For trifectas, in lieu of odds or

1approximate will-pays, the amount of money being wagered on each
2horse to win in the trifecta pool must be displayed on video
3screens separately from any other information. Information must
4be displayed from the opening of bets or wagering and be
5continually displayed until the wagering is closed. At least one
6video screen in each wagering division shall display the amount
7of money wagered on each horse involved in a trifecta pool.

8Section 234-A. Simulcasting.

9(a) General rule.--The board shall permit intrastate
10simulcasting of live racing.

11(b) Simulcast signal.--The simulcast signal shall be
12encoded, and the racetrack receiving the simulcast signal may
13not send the signal anywhere other than a public location
14authorized under section 218.1-A or 218.2-A.

15(c) Forms of pari-mutuel wagering.--The forms of pari-mutuel
16wagering described in section 221-A are allowed on a race to be
17televised by simulcasting under this section.

18(d) Regulations.--The board may promulgate regulations on
19wagering and the operation of horse racing.

20(e) Computation of money wagered.--The money wagered by a
21patron on a race must be computed in the amount of money wagered
22each racing day for purposes of taxation under section 222-A.

23(f) Thoroughbred and standardbred horse racetracks.--If a
24simulcast is between a thoroughbred racetrack and a standardbred
25horse racetrack, the board has jurisdiction. An approval
26required under this section must be received from the board,
27provided that if an agreement is not reached between the
28organization representing the horsemen, the licensed business
29entity may petition the court of common pleas in the county in
30which the licensed entity's racetrack is located. The court of

1common pleas may direct the organization representing the
2horsemen to approve the simulcast agreement upon good cause
3shown by the licensed business entity that failure to consent
4would be detrimental to the racing industry in this
5Commonwealth. The board may authorize the simulcasting if the
6simulcasting will have a significant value to the racing
7industry in this Commonwealth.

8(g) Definition.--As used in this section, the term "racing
9day" consists of a minimum of eight live races, except at
10thoroughbred tracks on Breeders' Cup Event Day.

11Section 235-A. Commingling.

12(a) Applicability.--This section is applicable only to
13licensed business entities that conduct thoroughbred racing.

14(b) Race secretary.--The race secretary shall receive
15entries and declarations as an agent for the licensed business
16entity for which the race secretary acts. The race secretary or
17an individual designated by the licensed business entity may
18receive stakes, forfeits, entrance money, jockey fees and other
19fees, purchase money in claiming races and other money that can
20properly come into the race secretary's possession as an agent
21for the licensed business entity for which the race secretary or
22designee is acting.

23(c) Horsemen's Account.--A licensed business entity shall
24maintain a separate account, to be known as a Horsemen's 
25Account. Money owed to owners in regard to purses, stakes,
26rewards, claims and deposits shall be deposited into the
27Horsemen's Account. Funds in the account are recognized and
28denominated as being the sole property of owners. Deposited
29funds may not be commingled with funds of the licensed business
30entity unless a licensed business entity established an

1irrevocable clean letter of credit with an evergreen clause in 
2favor of the organization which represents a majority of the 
3owners and trainers racing with the licensed business entity.
4The minimum amount of the credit must be the greater of
5$1,000,000 or 110% of the highest monthly balance in the
6Horsemen's Account in the immediate prior year. To calculate the
7monthly balance in the Horsemen's Account, the sum of the daily
8balances shall be divided by the number of days in the month.
9The evergreen clause must provide that:

10(1) thirty days prior to the expiration of the letter of
11credit, the financial institution can elect not to renew the
12letter of credit;

13(2) upon an election under paragraph (1), the financial
14institution must notify the designee of the organization that
15represents a majority of the owners and trainers racing with
16the licensed business entity, by registered mail, return
17receipt requested, of the election not to renew; and

18(3) the financial institution will honor the letter of
19credit for six months after expiration.

20Purse money earned by owners shall be deposited by the licensed
21business entity in the Horsemen's Account within 48 hours after
22the result of the race in which the money was earned has been
23declared official and the purse has been released by the board.

24(d) Accounting.--A licensed business entity shall designate
25individuals authorized to receive and disburse funds from the
26Horsemen's Account. Individuals designated under this subsection
27shall be bonded to provide indemnity for malfeasance,
28nonfeasance and misfeasance. A certified copy of the bond shall
29be filed with the board.

30(e) Examination, access and records.--The Horsemen's Account

1and the investment and deposit schedules relating to the account
2are subject to examination, at reasonable times, by a designee
3of the organization which represents a majority of the owners
4and trainers racing with the licensed business entity and by the
5board. The individual designated under subsection (d) shall
6provide each owner with access, at reasonable times during a
7racing day, to the amount of funds in the Horsemen's Account
8credited to that owner. At the close of a horse racing meeting,
9the designated individual shall mail to each owner a record of
10deposits, withdrawals and transfers affecting the amount of
11funds in the Horsemen's Account credited to that owner.

12(f) Auditing and monthly statements.--The Horsemen's Account
13shall be audited annually and at any other time determined by
14the board. Monthly statements shall be provided to the designee
15of the organization which represents a majority of the owners
16and trainers racing with the licensed business entity and the
17board.

18(g) Interest.--Fifty percent of the money earned as interest
19on funds in the Horsemen's Account shall be paid to the
20organization that represents a majority of the owners and
21trainers racing with the licensed business entity on a weekly
22basis. The amount is for the benefit of the horsemen as
23determined by the organization that represents the majority of
24the owners and trainers racing with the licensed business
25entity. The remaining 50% of the interest earned is for the
26benefit of the licensed business entity that has the
27responsibility to fund the costs associated with the
28administration of the fund. Interest each month must be earned
29in an amount equal to the Federal Reserve Discount Rate on the
30first day of the month.

1Section 236-A. Standardbred horse racing purse money.

2A licensed business entity must place on deposit with the
3board by March 1 of each year an irrevocable letter of credit
4equivalent to its average weekly purse total from the immediate
5prior year. The board shall hold the letter of credit in trust
6for the standardbred horsemen racing at that licensed business
7entity's horse race meeting if the purse checks are not issued
8or insufficient funds are available to cover the purse checks.

9Section 4. Section 301 of the act is amended to read:

10Section 301. Mandatory requirements for medication rules.

11(a) [The commissions shall have in effect at all times when]
12When a licensed [corporation] business entity conducts a horse
13racing meeting with pari-mutuel wagering the board shall have in
14effect rules or regulations to control the use and
15administration of any medication and the use and administration
16of any device that affects the performance of a race horse. The
17[commissions may establish permitted tolerance levels and
18therapeutic dose allowances for all medication to be used or
19administered to a race horse.] board shall adopt a comprehensive
20schedule of equine drugs, medications, therapeutic substances or
21metabolic derivatives which are authorized to be administered to
22race horses, including tolerance levels and therapeutic dose
23allowances. The board shall consult with the Pennsylvania Board
24of Veterinary Medicine, academic institutes in other states and
25experts as necessary to develop the approved schedule.

26(b) The [commissions] board shall establish in their rules
27or regulations penalty provisions for the violation of these
28rules or regulations.

29Section 5. Section 302(a) and (c) of the act, amended May
3016, 1986 (P.L.205, No.63), are amended to read:

1Section 302. Establishment of the Pennsylvania Race Horse
2Testing Program.

3(a) There is hereby established the Pennsylvania Race Horse
4Testing Program. The program shall be administered by [a
5management committee composed of the two chairpersons of the
6commissions, the Secretary of Agriculture and two persons
7appointed by the Governor. One person appointed by the Governor
8must be a doctor of veterinary medicine or a veterinary medical
9doctor and a member of the faculty of a school of veterinary
10medicine located within this Commonwealth and the other person
11must be employed within the private sector and have a background
12in biological and/or chemical laboratory management. The program
13is placed in and made a part of the Department of Agriculture]
14the board. All costs of the program shall be paid by the
15[commissions] fees collected under section 304. [Subject to all
16provisions of the act of April 9, 1929 (P.L.177, No.175), known
17as "The Administrative Code of 1929," that apply to the
18department, the management committee shall appoint and direct
19all personnel as necessary, establish a facility or contract for
20the provision of testing services, acquire all necessary
21equipment and supplies and adopt all necessary procedures.]

22* * *

23[(c) In order to evaluate the effectiveness of testing
24services performed by personnel of the Department of Agriculture
25and determine whether the manner in which these services are
26provided, the tests utilized and tolerance levels permitted
27should be modified, the commissions shall equally fund a
28contracted evaluation of existing laboratory services to be
29conducted by a nongovernmental entity with documented expertise
30to accurately evaluate existing laboratory services and

1formulate recommendations for improvement of the testing
2program. Upon review of the evaluation results, the department
3may implement in consultation with the management committee a
4program to improve laboratory services, including, if necessary
5and appropriate, the selection of a contractor or contractors to
6provide testing services. This study shall be completed on or
7before January 1, 1987, and copies provided to the Governor, the
8President pro tempore of the Senate, the Speaker of the House of
9Representatives and the members of the State Government
10Committees of the Senate and the House of Representatives within
1115 working days.]

12Section 6. Section 304 of the act is amended to read:

13Section 304. Costs of the enforcement of the medication rules
14or regulations.

15[All costs for the collection and testing samples for any
16manner of medication shall be paid by the commissions.] The
17board shall establish a fee schedule to be charged to horse
18owners for the actual costs of the collections and testing for
19medication. The costs of collections and testing shall include
20the cost of equipment, supplies and facilities, except holding
21barns or stables, to be located at race horse meeting
22facilities, grounds or enclosures or at other locations
23designated by the board. The fee schedule shall be published in
24the Pennsylvania Bulletin and shall be in effect 60 days after
25being published.

26Section 6.1. The following shall apply:

27(1) Notwithstanding any other law, no later than 180
28days after the effective date of this section, the State
29Horse Racing Commission and the State Harness Racing
30Commission shall cease to exist and the powers and duties of

1the State Horse Racing Commission and the State Harness
2Racing Commission shall be transferred to the Pennsylvania
3Gaming Control Board. Notification of the date of the
4transfer of the powers and duties of the State Horse Racing
5Commission and State Harness Racing Commission to the
6Pennsylvania Gaming Control Board shall be submitted by the
7Pennsylvania Gaming Control Board for publication in the
8Pennsylvania Bulletin.

9(2) Upon the transfer of the powers and duties of the
10State Horse Racing Commission and the State Harness Racing
11Commission to the Pennsylvania Gaming Control Board, the
12following shall apply:

13(i) The following shall be transferred to and shall
14become employees of the Pennsylvania Gaming Control Board
15and their status as an employee of the Department of
16Agriculture shall cease:

17(A) An individual who is employed by the
18Department of Agriculture and assigned to the State
19Horse Racing Commission or the State Harness Racing
20Commission.

21(B) An individual who is employed by the
22Department of Agriculture and whose duties
23substantially involve licensing or enforcement, the
24development of laws or the development or adoption of
25regulations or policy related to horse racing under
26the act or who have other discretionary authority
27which may affect the outcome of an action, proceeding
28or decision under the act.

29(ii) Subject to the provisions of subparagraphs
30(xii), (xiii) and (xiv), the Pennsylvania Gaming Control

1Board shall establish salaries and other compensation for
2an individual transferred under subparagraph (i) in
3accordance with the existing policies of the Pennsylvania
4Gaming Control Board.

5(iii) An individual transferred under subparagraph
6(i) shall remain a State employee for purposes of 71
7Pa.C.S. Pt. XXV and the individual's service shall be
8considered continual and uninterrupted.

9(iv) Subject to the provisions of subparagraphs
10(xii), (xiii) and (xiv), on and after the date of
11transfer to the Pennsylvania Gaming Control Board, a
12transferred employee shall be eligible for paid holidays
13and the accrual of sick and annual leave and any other
14leave in accordance with the policies of the Pennsylvania
15Gaming Control Board.

16(v) Sick and annual leave accrued by a transferred
17employee prior to the date of transfer shall be
18transferred based upon the accrued sick and annual leave
19balances credited to the transferred employee by the
20Department of Agriculture as of the day immediately
21preceding the transferred employee's date of transfer.

22(vi) The Department of Agriculture shall provide
23payment to the Pennsylvania Gaming Control Board for the
24accrued sick and annual leave time transferred under
25subparagraph (v). Within 30 days of the transfer of
26employees, the Department of Agriculture shall provide in
27writing to the Pennsylvania Gaming Control Board all
28leave information requested by the Pennsylvania Gaming
29Control Board for employees transferred under
30subparagraph (i).

1(vii) Subject to the provisions of subparagraphs
2(xii), (xiii) and (xiv), accrued sick or annual leave
3which exceeds the maximum allowed by the policies of the
4Pennsylvania Gaming Control Board in effect on the day
5immediately preceding the date of transfer and any other
6leave may not be transferred and credited. The Department
7of Agriculture shall provide a lump sum payment to an
8individual transferred under subparagraph (i) for sick or
9annual leave and any other leave which is not transferred
10and credited under this paragraph.

11(viii) Subject to the provisions of subparagraphs
12(xii), (xiii) and (xiv), transferred employees and their
13dependents shall continue to be eligible to receive
14medical plan benefits, supplemental benefits and other
15benefits as determined by the trustees of the
16Pennsylvania Employees Benefits Trust Fund.

17(ix) Subject to the provisions of subparagraphs
18(xii), (xiii) and (xiv), transferred employees and their
19dependents shall continue to be eligible to elect
20coverage upon retirement under the Retired Employees
21Health Program.

22(x) The Department of Agriculture shall be obligated
23and required to provide a lump sum payment to the
24Pennsylvania Gaming Control Board to underwrite or offset
25the cost of accrued Retired Employees Health Program and
26pension benefits.

27(xi) The Pennsylvania Gaming Control Board shall
28submit a report to the chairman and minority chairman of
29the Appropriations Committee of the Senate and the
30chairman and minority chairman of the Appropriations

1Committee of the House of Representatives containing the
2expenditures for compensation and related expenditures
3for individuals who are transferred under this section.

4(xii) All collective bargaining agreements and
5memoranda of understanding, including any side letters
6attendant to a collective bargaining agreement and
7memoranda of understanding, between the Commonwealth and
8an employee organization covering employees transferred
9under subparagraph (i) shall remain in force and effect.
10The Pennsylvania Gaming Control Board shall become a
11signatory to the collective bargaining agreements and
12memoranda of understanding.

13(xiii) An employee transferred under subparagraph
14(i) shall retain the right to union representation and
15collective bargaining as an employee of the Pennsylvania
16Gaming Control Board.

17(xiv) Within 90 days after the effective date of
18this section, the Pennsylvania Gaming Control Board and
19the employee organization representing transferred
20employees shall enter into negotiations for purposes of
21negotiating terms specific to the transferred employees,
22including promotions, transfers, seniority and other
23necessary items.

24(xv) Nothing under this act shall be construed to
25require an employee transferred to the Pennsylvania
26Gaming Control Board under subparagraph (i) to obtain a
27license or permit under this act or 4 Pa.C.S. Pt. II as a
28condition of employment with the Pennsylvania Gaming
29Control Board.

30Section 7. When the Pennsylvania Gaming Control Board is

1prepared to implement this act, it shall transmit notice to the
2Legislative Reference Bureau for publication in the Pennsylvania
3Bulletin.

4Section 8. This act shall take effect as follows:

5(1) The following provisions shall take effect
6immediately:

7(i) Section 7 of this act.

8(ii) This section.

9(2) The remainder of this act shall take effect upon the
10earlier of the following:

11(i) The date of publication of the notice under
12section 7 of this act.

13(ii) In 180 days.

<-14Section 1. Section 102 of the act of December 17, 1981
15(P.L.435, No.135), known as the Race Horse Industry Reform Act,
16amended or added May 16, 1986 (P.L.205, No.63) and November 30,
171988 (P.L.1090, No.127), is amended to read:

18Section 102. Definitions.

19The following words and phrases when used in this act shall
20have, unless the context clearly indicates otherwise, the
21meanings given to them in this section:

22["Air mile." A unit of distance equal to 1,852 kilometers or
235,280 feet for purposes of this act.]

24"Advance deposit account wagering." A form of pari-mutuel
25wagering in which an individual may establish an account with a
26person licensed by the commission, and may place a pari-mutuel
27wager through that account.

28"Applicant." A person who, on his own behalf or on behalf of
29another, is applying for permission to engage in an act or
30activity which is regulated under the provisions of this act. If

1the applicant is a person other than an individual, the
2commission shall determine the associated persons whose
3qualifications are necessary as a precondition to the licensing
4of the applicant.

5"Backside area." As defined in 4 Pa.C.S. § 1103 (relating to
6definitions).

7"Breakage." The odd cents of redistributions to be made on
8contributions to pari-mutuel pools exceeding a sum equal to the
9next lowest multiple of ten.

10"Clean letter of credit." A letter of credit which is
11available to the beneficiary against presentation of only a
12draft or receipt.

13"Commission." The State Horse Racing Commission.

14["Commissions." The State Horse Racing Commission and the
15State Harness Racing Commission.]

16"Commissioners." The persons appointed by the Governor and
17confirmed by the Senate who serve on the State [Horse Racing
18Commission or the State Harness] Racing Commission and who
19administer the applicable provisions of this act.

20"Conviction." As defined in 4 Pa.C.S. §1103 (relating to
21definitions).

22"Electronic wagering." A legal wager placed by an individual
23in this Commonwealth related only to the outcome of a horse race
24taking place in this Commonwealth, placed or transmitted by an
25individual through telephone or any electronic media approved by
26the commission and accepted by a licensed racing entity or its
27approved off-track betting system located in this Commonwealth.

28"Evergreen clause." A term in a letter of credit providing
29for automatic renewal of the letter of credit.

30"Ex parte communication." An off-the-record communication

1engaged in or received by a commissioner or hearing officer of
2the commission regarding the merits of, or any fact in issue
3relating to, a pending matter before the commission or hearing
4officer or which may reasonably be expected to come before the
5commission or hearing officer in a contested on-the-record
6proceeding. The term shall not include:

7(1) An off-the-record communication by or between a
8commissioner or hearing officer of the commission, the
9Department of Revenue, Pennsylvania State Police, Attorney
10General or other law enforcement official, prior to the
11beginning of the proceeding solely for the purpose of seeking
12clarification or correction to evidentiary materials intended
13for use in the proceedings.

14(2) A communication between the commission or a
15commissioner and legal counsel.

16"Felony." As defined in 4 Pa.C.S. § 1213(4) (relating to
17license or permit prohibition).

18"Financial interest." An ownership, property, leasehold or
19other beneficial interest in an entity. The term shall not
20include an interest which is held or deemed to be held in any of
21the following:

22(1) Securities that are held in a pension plan, profit-
23sharing plan, individual retirement account, tax-sheltered
24annuity, a plan established under section 457 of the Internal
25Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §457), Or
26any successor provision, deferred compensation plan whether
27qualified or not qualified under the Internal Revenue Code of
281986, or any successor provision or other retirement plan
29that:

30(i) Is not self-directed by the individual.

1(ii) Is advised by an independent investment adviser
2who has sole authority to make investment decisions with
3respect to contributions made by the individual to these
4plans.

5(2) A tuition account plan organized and operated under
6section 529 of the Internal Revenue Code of 1986 that is not
7self-directed by the individual.

8(3) A mutual fund where the interest owned by the mutual
9fund in a licensed racing entity does not constitute a
10controlling interest as defined in 4 Pa.C.S. §1103 (relating
11to definitions).

12"Horse racing." Standardbred horse racing and thoroughbred
13horse racing.

14"Horseman's organization." A trade association which
15represents the majority of owners and trainers who own and race
16horses at a racetrack.

17"Irrevocable clean letter of credit." A clean letter of
18credit which cannot be canceled or amended unless there is an
19agreement to cancel or amend among all parties to the letter of
20credit.

21"Land mile." A unit of distance equal to 1,852 kilometers or
225,280 feet.

23["Licensed corporations." The corporations that have
24obtained a license from either the State Horse Racing Commission
25or the State Harness Racing Commission to conduct thoroughbred
26or harness horse race meetings respectively with pari-mutuel
27wagering.]

28"Licensed advance deposit account wagering entity." A person
29licensed by the commission to conduct advance deposit account
30wagering and accept deposits and wagers, issue receipts or other

1confirmation to the account holder evidencing such deposits and
2wagers, and transfer credits and debits to and from accounts.

3"Licensed entity." As defined in 4 Pa.C.S. § 1103 (relating
4to definitions).

5"Licensed facility." As defined in 4 Pa.C.S. § 1103
6(relating to definitions).

7"Licensed entity representative." A person, including an
8attorney, agent or lobbyist, acting on behalf of or authorized
9to represent the interest of any applicant, licensee, permittee
10or other person authorized by the commission to engage in any
11act or activity regulated by the commission under this act
12regarding any matter before, or which may be reasonably expected
13to come before, the commission. The term shall include a person
14representing a horseman's organization or a horse breeder's
15organization.

16"Licensed racing entity." Any person that has obtained a
17license to conduct live thoroughbred or harness horse race
18meetings respectively with pari-mutuel wagering from the
19commission.

20"Licensee." The holder of a license issued under this act.

21"Nonprimary location." Any facility in which pari-mutuel
22wagering is conducted by a licensed racing entity pursuant to
23this act other than the [primary racetrack location] racetrack 
24where live racing is conducted.

25["Nonprimary location statement." The written statement
26pursuant to this act submitted to the appropriate commission by
27a licensed corporation planning to establish a nonprimary
28location.]

29"Ownership interest." Owning or holding, or being deemed to
30hold, debt or equity securities or other ownership interest or

1profit interest.

2"Permittee." The holder of a permit issued under this act.

3"Primary market area of a racetrack." The land area included
4in a circle drawn with the racetrack as the center and a radius
5of 35 land miles.

6"Racetrack." The physical facility where a licensed
7[corporation] racing entity conducts thoroughbred or [harness] 
8standardbred race meetings respectively with pari-mutuel
9wagering.

10"Racetrack enclosure." For purposes of this act, the term
11"racetrack enclosure," with respect to each licensed
12[corporation] racing entity, shall be deemed to include at least
13one primary racetrack location at which horse race meetings
14authorized to be held by the licensed [corporation] racing 
15entities are conducted, and all primary, nonprimary, contiguous
16and noncontiguous locations of the licensed [corporation] racing 
17entity which are specifically approved by the [appropriate]
18commission for conducting the pari-mutuel system of wagering on
19the results of horse [races] racing held at such meetings or
20race meetings conducted by another licensed [corporation] racing 
21entity or televised to such locations by simulcasting.

22"Secondary market area of a racetrack." The land area
23included in a circle drawn with the racetrack as the center and
24a radius of 50 land miles, not including the primary market area
25of the racetrack.

26"Simulcast." The transmission of live electronically
27televised video/audio races from the host racetrack to the [race
28track] racetrack receiving the television transmission.

29"Standardbred horse racing" or "harness racing." A form of
30horse racing in which the horses participating are attached "in

1harness" to a sulky or other similar vehicle, at a specific
2gait, either a trot or pace.

3"Thoroughbred horse racing." The form of horse racing in
4which each participating horse is mounted by a jockey, is duly
5registered with The Jockey Club of New York and engages in horse
6racing on the flat, which may include a steeplechase or hurdle
7race.

8"Totalisator." A computer system used to pool wagers, record 
9sales, calculate payoffs and display wagering data on a display 
10device that is located at a pari-mutuel facility or nonprimary 
11location.

12Section 2. Chapter 2 of the act is repealed:

13[CHAPTER 2

14STATE HORSE RACING COMMISSION AND STATE HARNESS

15RACING COMMISSION

16Section 201. Establishment of the commissions.

17(a) The State Horse Racing Commission is hereby established
18as a departmental administrative commission within the
19Department of Agriculture. The commission shall have general
20jurisdiction over all pari-mutuel thoroughbred horse racing
21activities in the Commonwealth and the corporations engaged
22therein. For the purposes of this act, "thoroughbred horse
23racing" means that form of horse racing in which each
24participating horse is mounted by a jockey, is duly registered
25with the Jockey Club, New York, New York and engages in races on
26the flat. Thoroughbred horse racing may include a steeplechase
27or hurdle race. The commission shall consist of three members
28who shall be appointed by the Governor, by and with the advice
29and consent of the Senate. Each commissioner shall hold office
30for a term of three years and until a successor is qualified.

1(b) The State Harness Racing Commission is hereby
2established as a departmental administrative commission within
3the Department of Agriculture. The commission shall have general
4jurisdiction over all pari-mutuel harness racing activities in
5the Commonwealth and the corporations engaged therein. The
6commission shall consist of three members who shall be appointed
7by the Governor, by and with the advice and consent of the
8Senate. Each commissioner shall hold office for a term of three
9years and until a successor is qualified.

10(c) The commissioners shall be reimbursed for documented
11expenses incurred in the performance of their official duties.
12The commissioners shall be paid $150 per diem for performing
13their duties as directed by the Secretary of Agriculture. One of
14the commissioners for each commission shall be appointed by the
15Governor as chairperson. The commissioner appointed by the
16Governor as chairperson shall serve in that position at the
17pleasure of the Governor. The Secretary of Agriculture or his
18designee shall be a nonvoting ex officio member of the
19commissions. The commissions shall meet at least once a month
20and at other times as the Secretary of Agriculture or the
21commission chairperson deems necessary. Adequate public notice
22of the time and place of the meetings shall be given. A
23commissioner who fails to attend three consecutive meetings
24shall be subject to removal. A commissioner shall be excused
25from meetings due to illness or death of an immediate family
26member. All commissioners shall be licensed under the provisions
27of section 213.

28(d) Each commission shall engage an executive secretary,
29deputies, secretaries, officers and representatives as it may
30deem necessary, who shall serve during its pleasure. The

1commissions shall also engage other employees as they see fit
2and whose duties shall be prescribed by the commissions and
3whose compensation shall be fixed by the commissions within the
4appropriations available. Legal counsel for the commissions
5shall be appointed in accordance with the act of October 15,
61980 (P.L.950, No.164), known as the "Commonwealth Attorneys
7Act." Each commission shall be subject to the provisions of the
8act of April 9, 1929 (P.L.177, No.175), known as "The
9Administrative Code of 1929," as to classification and
10compensation for all its employees.

11(e) It shall be the duty of the executive secretary to keep
12a full and faithful record of the proceedings of the
13commissions, preserve at the general office of the commissions
14all books, maps, documents and papers entrusted to the executive
15secretary's care, prepare for service the papers and notices as
16may be required by the commissions and perform other duties as
17the commissions may prescribe. It shall be the duty of the
18executive secretary to keep, at the offices of the commissions,
19a docket setting forth the names of all stockholders in all
20corporations licensed under this act, the number of shares held
21by each stockholder and the date on which each shareholder
22acquired stock in the licensed corporation. The docket shall be
23open for public inspection. It shall be the duty of the
24executive secretary to appear before the Appropriations
25Committees of the Senate and the House of Representatives for
26budgetary review and recommendations.

27(f) The commissions or designated officers, employees or
28agents of the commissions shall have the power to administer
29oaths and examine witnesses and may issue subpoenas to compel
30attendance of witnesses and production of all relevant and

1material reports, books, papers, documents, correspondence and
2other evidence. The commissions shall, annually, make a full
3report to the Secretary of Agriculture of their proceedings for
4the preceding calendar year and suggestions and recommendations
5as they see fit. The commissions shall exercise their powers and
6duties in accordance with the provisions of "The Administrative
7Code of 1929."

8(g) The terms and termination dates of the terms of the
9three commissioners who constitute the State Horse Racing
10Commission under the act of December 11, 1967 (P.L.707, No.331),
11referred to as the Pennsylvania Thoroughbred Horse Racing Law,
12shall continue under this act. Any commissioner whose term has
13already expired on the effective date of this act and who has
14not been replaced by a new member or has not been confirmed for
15another term, shall continue in his or her present status until
16replaced by a new member or confirmed for another term.

17(h) The terms and termination dates of the terms of the
18three commissioners who constitute the State Harness Racing
19Commission under the act of December 22, 1959 (P.L.1978,
20No.728), referred to as the Pennsylvania Harness Racing Law,
21shall continue under this act. Any commissioner whose term has
22already expired on the effective date of this section and who
23has not been replaced by a new member or has not been confirmed
24for another term, shall continue in his or her present status
25until replaced by a new member or confirmed for another term.

26(i) All rules and regulations promulgated under the
27provisions of the Pennsylvania Thoroughbred Horse Racing Law and
28the Pennsylvania Harness Racing Law shall remain in effect
29except to the extent that they are in direct conflict with the
30provisions of this act. The commissions may amend, revise or

1alter these rules and regulations as they deem necessary.

2(j) All licenses issued under the provisions of section 11
3of the Pennsylvania Thoroughbred Horse Racing Law and under the
4provisions of section 9 of the Pennsylvania Harness Racing Law,
5shall remain in effect for the remainder of the term for which
6these licenses were issued. After these licenses have expired,
7all renewals or new licenses shall be issued under the
8provisions of this act.

9(k) All licenses issued to corporations under the provisions
10of section 7 of the Pennsylvania Thoroughbred Horse Racing Law
11and under the provisions of section 7 of the Pennsylvania
12Harness Racing Law, shall continue with the same force and
13effect and shall be governed by the provisions of section 209.

14Section 202. General powers of the commissions.

15(a) The State Horse Racing Commission shall have the power
16to supervise all thoroughbred horse race meetings at which pari-
17mutuel wagering is conducted. The State Harness Racing
18Commission shall have the power to supervise all harness horse
19racing meetings at which pari-mutuel wagering is conducted. The
20commissions may adopt rules and regulations to effect the
21purposes and provisions of this act.

22(b) Without limiting the generality of the foregoing and in
23addition to its other powers:

24(1) Each commission shall have power to fix a minimum
25charge for admission to horse race meetings at which pari-
26mutuel wagering is conducted, but the minimum charge shall
27not be less than 50¢ for general admission, exclusive of
28taxes. The commissions shall have power to fix the charge for
29admission of soldiers, sailors and marines, in uniform, at
30one-half of the amount fixed for general admission, whether

1or not the one-half of the amount fixed is less than the
2minimum prescribed therein.

3(2) Each commission shall at all times have in effect
4rules and regulations as required under Chapter 3 regarding
5medication rules and enforcement provisions.

6(3) The rules of the commissions shall also provide that
7all winning pari-mutuel tickets must be presented for payment
8before April 1 of the year following the year of their
9purchase and failure to present the ticket within the
10prescribed period of time shall constitute a waiver of the
11right to participate in the award. After April 1 of the year
12following, all licensed corporations will forward to the
13State Treasurer through the Department of Revenue for credit
14to the State Racing Fund all funds so held for the uncashed
15tickets. Where it is shown to the satisfaction of the
16appropriate commission and the Department of Revenue, through
17substantiated and recorded data, that the reason for the
18pari-mutuel ticket or tickets being outstanding and unclaimed
19is loss, misplacement or theft within the confines and
20control of the pari-mutuel department of any licensed
21corporation and it is shown to the satisfaction of the
22appropriate commission and the Department of Revenue that the
23pari-mutuel ticket or tickets in question have been cashed by
24the pari-mutuel department, the Department of Revenue, with
25the approval of the appropriate commission, may adjust and
26credit the licensed corporation's outstanding ticket account
27accordingly on March 31 of the year following the year of
28purchase or after a complete audit of the outstanding tickets
29accounts have been performed. The licensed corporation shall
30reimburse any employee who has been held personally

1accountable and paid for the lost, misplaced or stolen
2tickets.

3(4) The commissions may adopt a general promotion
4program to assist the licensed corporations in increasing
5their attendance and average daily handle. Any expenditures
6for a promotional program shall be authorized and approved in
7the same manner as other operational costs of the
8commissions.

9(5) In the event that a state bordering Pennsylvania
10enacts a wagering tax scheme that may place Pennsylvania
11horse race meetings at a competitive disadvantage in the
12purses that can be offered for horse races, a licensed
13corporation may petition the appropriate commission for an
14emergency financial grant to augment its purse structure. If
15the appropriate commission finds that the effect of the
16enacted wagering tax scheme of a bordering state is to place
17Pennsylvania horse race meetings at a competitive
18disadvantage in purse structure, the appropriate commission
19shall make an emergency financial grant to the petitioning
20licensed corporation for augmentation to its purse structure
21out of moneys that the commission has budgeted for this
22purpose; provided, however, that the Secretary of Agriculture
23and the Secretary of the Office of Budget and Administration
24have also agreed to the grant.

25(c) The State Harness Racing Commission shall have
26jurisdiction over and shall promulgate regulations as necessary
27for the proper administration of all racing conducted by a
28county agricultural society or an independent agricultural
29society, as provided for under section 5(1)(iii) and (iv) of the
30act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania

1Agricultural Fair Act."

2Section 203.

3(c) No corporation shall have the right to conduct any horse
4race meet except on obtaining a license from the appropriate
5commission and at the location or locations designated in its
6license or any amendment thereto or as approved at any time by
7the commission as the place or places at which it was proposed
8to conduct its business. This restriction shall not apply to any
9corporation whose racing plant or usefulness, in the discretion
10of the appropriate commissions, shall, for any reason beyond the
11control of the corporation, be totally destroyed or so
12substantially interfered with as to render same unfit for
13continued operation. Pending the rebuilding or restoration of
14its usefulness, or the making of the required repairs to the
15plant or the part destroyed or damaged, the commissions may
16license such corporation to conduct its horse race meetings at
17any other suitable location.

18Section 204. Filing of information concerning stock transfers;
19necessity for commissions' approval.

20(a) Whenever a transfer of stock comprising an interest of
215% or more in any licensed corporation, or comprising an
22interest of 5% or more in any corporation which leases to a
23licensed corporation the track facility at which it conducts
24pari-mutuel horse races or comprising an interest of 5% or more
25in any corporation which owns 25% or more of the stock of the
26licensed corporation shall be made, there shall be filed,
27simultaneously, with the corporation which issued such stock the
28following:

29(1) In duplicate, an affidavit executed by the
30transferee of the interest stating that he is to be the sole

1beneficial owner thereof, and whether or not he:

2(i) has been convicted of a crime involving moral
3turpitude;

4(ii) has been engaged in bookmaking or other forms
5of illegal gambling;

6(iii) has been found guilty of any fraud or
7misrepresentation in connection with racing or breeding;

8(iv) has been guilty of any violation or attempt to
9violate any law, rule or regulation of any racing
10jurisdiction, for which suspension from racing might be
11imposed in such jurisdiction; or

12(v) has violated any rule, regulation or order of
13the commissions.

14If the transferee of the interest is not, or is not to be,
15the sole beneficial owner, there shall be annexed to the
16affidavit of the transferee, and expressly stated in such
17affidavit, a true and complete copy of all terms of the
18agreement pursuant to which the interest in the corporation
19is to be held by the transferee, including a detailed
20statement of the interest of each person who is to have any
21interest therein.

22(2) In duplicate, an affidavit executed by each person
23for whom the interest is to be held by the transferee,
24setting forth whether or not the affiant:

25(i) has been convicted of a crime involving moral
26turpitude;

27(ii) has engaged in bookmaking or other forms of
28illegal gambling;

29(iii) has been found guilty of any fraud or
30misrepresentation in connection with racing or breeding;

1(iv) has been guilty of any violation or attempt to
2violate any law, rule or regulation of any racing
3jurisdiction, for which suspension from racing might be
4imposed in such jurisdiction; or

5(v) has violated any rule, regulation or order of
6the commissions.

7To each of the affidavits shall be annexed, and expressly
8stated in such affidavit, a true and complete copy of all the
9terms of the agreement pursuant to which the interest is to
10be held by the transferee, including a detailed statement of
11the interest of each person who is to have any interest
12therein. The corporation shall file with the appropriate
13commission one of each duplicate affidavits.

14(b) If, after the filing of any affidavit required to be
15filed, there shall be any change in the status of any affiant
16with respect to any of the matters set forth in subsection (a)
17(1) of the affidavit filed, the affiant shall file with the
18corporation with which his affidavit was so filed a new
19affidavit, executed by him in duplicate, setting forth the
20change of status and the corporation shall file one of these
21affidavits with the appropriate commission.

22(c) Whenever any change shall be made in the amount, nature
23or of the interest of any person having an interest of 5% or
24more in any corporation, or any new interest of 5% or more shall
25be created therein, without a transfer as provided, the record
26owner of the stock, and each person whose interest has been
27attempted to be changed or created, shall file with the
28corporation which issued the stock, in duplicate, affidavits as
29provided by subsection (a)(1) and (2), except that these
30affidavits need not include the matter referred to in subsection

1(a) unless then required pursuant to subsection (b) and one copy
2thereof shall be filed by the corporation with the appropriate
3commission.

4(d) If the appropriate commission determines that it is
5inconsistent with the public interest, convenience, or
6necessity, or with the best interest of racing generally, that
7any person continue to be a stockholder of record, or the
8beneficial owner of any interest in stock standing in the name
9of another in any licensed corporation or of any corporation
10which leases to such licensed corporation the track at which it
11conducts pari-mutuel horse racing or which owned 25% or more of
12the stock of the licensee, the appropriate commission shall have
13full power and authority to order each stockholder or beneficial
14owner to dispose of his stock or interest within a period of
15time to be specified by the appropriate commission, which period
16the appropriate commission shall have full power to extend.

17(e) If the commissions shall make any order or direction as
18provided in subsection (d), the person aggrieved shall be given
19notice of the time and place of a hearing before the appropriate
20commission, at which time the appropriate commission will hear
21the person in reference thereto.

22Section 205. Number of horse racing corporations.

23(a) No more than six corporations shall be licensed by the
24State Horse Racing Commission to conduct a pari-mutuel meet or
25meets. No corporation licensed under this act to conduct harness
26racing with pari-mutuel wagering or under the act of December
2722, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
28Harness Racing Law, shall be licensed to conduct thoroughbred
29horse racing with pari-mutuel wagering.

30(b) No more than five corporations shall be licensed by the

1State Harness Racing Commission to conduct a pari-mutuel meet or
2meets. No corporation licensed under this act to conduct
3thoroughbred horse racing with pari-mutuel wagering or under the
4act of December 11, 1967 (P.L.707, No.331), referred to as the
5Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to
6conduct harness horse racing with pari-mutuel wagering.

7Section 206. Responsibilities of the Department of Revenue.

8The Department of Revenue is charged with the financial
9administration of pari-mutuel wagering under this act, as
10supplemented by the rules and regulations of the commissions.
11The Department of Revenue shall have authority to prescribe the
12forms and the system of accounting to be employed, and through
13its representatives shall, at all times, have power of access
14to, and examination of, any equipment relating to such wagering.

15Section 207. Allocation of racing days.

16(a) Up to 125 but no less than 25 racing days shall be
17allocated to each licensed corporation conducting thoroughbred
18horse race meetings in any calendar year; except, that upon
19request, the State Horse Racing Commission may grant up to an
20additional 25 racing days over the 125 days to a licensed
21corporation in each calendar year, if racing meet schedules can
22accommodate these extra days. Whenever two or more corporations
23licensed to conduct racing at the same facility apply to the
24State Horse Racing Commission for an allocation of racing days
25at the same facility, the commission shall allocate the racing
26days in the following manner:

27(1) If there is an agreement between the licensed
28corporations as to the allocation of racing days then as
29provided for therein.

30(2) If there is no agreement between the licensed

1corporations as to the allocation of racing days, then
2equally between them.

3(b) No more than 125 racing days shall be allocated to each
4licensed corporation conducting harness horse race meetings in
5any calendar year. Every corporation shall hold its license
6under the provisions of section 209. The State Harness Racing
7Commission shall allocate the racing days in accordance with the
8following guidelines:

9(1) A licensed corporation that has an ownership
10interest in the facility at which the racing days are to be
11conducted shall be granted up to 125 racing days in any
12calendar year upon request to the State Harness Racing
13Commission. The State Harness Racing Commission shall grant
14all racing days requested by licensed corporations described
15in this paragraph before any other racing days are granted to
16any other licensed corporation that desires to conduct a meet
17at the same facility owned in part or in whole by a licensed
18corporation that also desires to conduct a meet there.

19(2) Whenever one or more licensed corporations that have
20an ownership interest in the facility at which the racing
21days are to be conducted apply to the State Harness Racing
22Commission for an allocation of racing days, the State
23Harness Racing Commission shall allocate an equal number of
24racing days to each licensed corporation or to each licensed
25corporation based upon an agreement between the licensed
26corporations as to the allocation of racing days.

27(3) Upon request the State Harness Racing Commission may
28grant up to an additional 25 racing days over the 125 racing
29days to a licensed corporation in each calendar year, and the
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