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PRIOR PRINTER'S NOS. 1244, 2649 PRINTER'S NO. 2662
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
941
Session of
2015
INTRODUCED BY REGAN, MILLARD, MARSHALL, IRVIN, PICKETT,
A. HARRIS, SANKEY, GIBBONS, COHEN, READSHAW, GROVE, MURT,
MOUL, PHILLIPS-HILL AND SAYLOR, APRIL 16, 2015
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
DECEMBER 14, 2015
AN ACT
Amending the act of April 9, 1929 (P.L.177, No.175), entitled
"An act providing for and reorganizing the conduct of the
executive and administrative work of the Commonwealth by the
Executive Department thereof and the administrative
departments, boards, commissions, and officers thereof,
including the boards of trustees of State Normal Schools, or
Teachers Colleges; abolishing, creating, reorganizing or
authorizing the reorganization of certain administrative
departments, boards, and commissions; defining the powers and
duties of the Governor and other executive and administrative
officers, and of the several administrative departments,
boards, commissions, and officers; fixing the salaries of the
Governor, Lieutenant Governor, and certain other executive
and administrative officers; providing for the appointment of
certain administrative officers, and of all deputies and
other assistants and employes in certain departments, boards,
and commissions; and prescribing the manner in which the
number and compensation of the deputies and all other
assistants and employes of certain departments, boards and
commissions shall be determined," IN ORGANIZATION OF
INDEPENDENT ADMINISTRATIVE BOARDS AND COMMISSIONS, PROVIDING
FOR PENNSYLVANIA GAMING CONTROL BOARD; in organization,
further providing for advisory boards and commissions; in
Commonwealth agency fees, further providing for distillery of
historical significance license fee reduction; in powers and
duties of Pennsylvania Public Utility Commission, providing
for transportation network companies; providing for race
horse industry reform; conferring duties upon the Joint State
Government Commission; making editorial changes; and making
related repeals.
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The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of April 9, 1929 (P.L.177,
No.175), known as The Administrative Code of 1929, is amended to
read:
AN ACT
Providing for and reorganizing the conduct of the executive and
administrative work of the Commonwealth by the Executive
Department thereof and the administrative departments,
boards, commissions, and officers thereof, including the
boards of trustees of State Normal Schools, or Teachers
Colleges; abolishing, creating, reorganizing or authorizing
the reorganization of certain administrative departments,
boards, and commissions; defining the powers and duties of
the Governor and other executive and administrative officers,
and of the several administrative departments, boards,
commissions, and officers; fixing the salaries of the
Governor, Lieutenant Governor, and certain other executive
and administrative officers; providing for the appointment of
certain administrative officers, and of all deputies and
other assistants and employes in certain departments, boards,
and commissions; providing for transportation network
companies; providing for the regulation of pari-mutuel
thoroughbred horse racing and harness horse racing
activities, imposing certain taxes and providing for the
disposition of funds from pari-mutuel tickets; and
prescribing the manner in which the number and compensation
of the deputies and all other assistants and employes of
certain departments, boards and commissions shall be
determined.
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SECTION 1.1. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 309. PENNSYLVANIA GAMING CONTROL BOARD.--(A) NOT
LATER THAN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE
PENNSYLVANIA GAMING CONTROL BOARD SHALL SUBMIT A REPORT TO THE
CHAIRPERSON AND MINORITY CHAIRPERSON OF THE COMMUNITY, ECONOMIC
AND RECREATIONAL DEVELOPMENT COMMITTEE OF THE SENATE AND THE
CHAIRPERSON AND MINORITY CHAIRPERSON OF THE GAMING OVERSIGHT
COMMITTEE OF THE HOUSE OF REPRESENTATIVES ON THE POTENTIAL OF
FANTASY SPORTS AS A GAMBLING PRODUCT IN THIS COMMONWEALTH.
(B) IN COMPILING THE REPORT, THE PENNSYLVANIA GAMING CONTROL
BOARD SHALL CONSIDER AND ADDRESS THE FOLLOWING:
(1) A DEFINITION OF "FANTASY SPORTS."
(2) THE STRUCTURE OF THE DIFFERENT FANTASY SPORTS FORMATS
AND THE UNDERLYING ACTIVITIES THAT MAY BE APPROPRIATE FOR
OVERSIGHT.
(3) FANTASY SPORTS ENTITIES, INCLUDING THE ROLES AND
RELATIONSHIPS OF ANCILLARY FANTASY SPORTS BUSINESSES, INCLUDING
HOST INTERNET WEBSITES, COLLEGIATE AND PROFESSIONAL SPORTS
ORGANIZATIONS AND PERSONS WITH A CONTROLLING INTEREST IN FANTASY
SPORTS ENTITIES.
(4) HOW REGULATION OF FANTASY SPORTS WOULD FIT INTO THE
COMMONWEALTH'S CURRENT GAMBLING LAWS AND POLICIES.
(5) COMPULSIVE AND PROBLEM GAMBLING.
(6) PROTECTION OF MINORS.
(7) MEASURES TO ENSURE THE WELL-BEING AND SAFETY OF PLAYERS.
(8) SAFEGUARDS AND MECHANISMS TO ENSURE THE REPORTING OF
GAMBLING WINNINGS AND FACILITATE THE COLLECTION OF APPLICABLE
FEDERAL AND STATE TAXES IN COMPLIANCE WITH FEDERAL AND STATE
LAW.
(9) RECOMMENDATIONS FOR LEGISLATIVE ACTION.
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(10) ANY OTHER INFORMATION RELATED TO THE CONDUCT AND
OPERATION OF FANTASY SPORTS AS THE BOARD MAY DEEM APPROPRIATE.
Section 1.1 1.2. Section 448(p) of the act, added December
3, 1970 (P.L.834, No.275), is amended to read:
Section 448. Advisory Boards and Commissions.--The advisory
boards and commissions, within the several administrative
departments, shall be constituted as follows:
* * *
(p) The Citizens Advisory Council shall be an independent
advisory council administratively housed within the Department
of Environmental Protection and shall consist of the Secretary
of Environmental [Resources] Protection who shall serve in an ex
officio capacity, six members who shall be appointed by the
Governor, no more than three of whom shall be of the same
political party, six members who shall be appointed by the
President Pro Tempore of the Senate, no more than three of whom
shall be of the same political party, and six members who shall
be appointed by the Speaker of the House of Representatives no
more than three of whom shall be of the same political party.
The appointed members of the council shall be citizens of the
State, who, during their respective terms, shall hold no other
State office to which any salary is attached except that of
membership on the Environmental Quality Board.
The term of office of each appointed member shall be three
years, measured from the third Tuesday of January of the year in
which he takes office, or until his successor has been
appointed; except that in the initial appointments of the
members of the council, the respective appointing authorities
shall appoint two members for terms of one year each, two
members for terms of two years each, and two members for terms
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of three years each.
The Citizens Advisory Council shall include persons
knowledgeable in fields related to the work of the Department of
Environmental Resources such as, but not limited to, ecology,
limnology, toxicology, pharmacology, organiculture, and
industrial technology.
The council shall annually elect one of its appointed members
as chairman and shall elect a secretary who need not be a member
of the council. Meetings of the council shall be held at least
quarterly or at the call of the chairman.
The council shall have the sole power to employ and fix the
compensation of an executive director and such experts,
stenographers, and assistants as may be deemed necessary to
carry out the work of the council, but due diligence shall be
exercised by the council to enlist such voluntary assistance as
may be available from citizens, research organizations, and
other agencies in Pennsylvania or elsewhere, generally
recognized as qualified to aid the council.
Section 1.2 2. Section 614-A(13)(iii) of the act, amended
July 1, 1990 (P.L.277, No.67), is amended to read:
Section 614-A. Liquor Control Board.--The Pennsylvania
Liquor Control Board is authorized to charge fees for the
following purposes and in the following amounts:
* * *
(13) Distillery of historical significance:
* * *
(iii) License fee (prorated quarterly).....
* * *
[5,400.00]
1,200.00
Section 3. The act is amended by adding a section to read:
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Section 2802.1. Transportation Network Companies.--(a)
Notwithstanding any law to the contrary, a certificate of public
convenience for experimental service granted by the Public
Utility Commission to allow for the provisions of service by a
transportation network company shall continue in effect under
the terms and conditions of the commission's orders granting the
certificate of public convenience until the effective date of
legislation adopted to regulate the provisions of these
services.
(b) A transportation network company operating pursuant to a
certificate of public convenience issued by the commission may
operate in all municipalities in this Commonwealth, including a
city of the first class.
(c) All operations in this Commonwealth of a transportation
network company under this section shall be subject to the terms
and conditions of the certificate of public convenience for
experimental service issued by the commission, including the
authority to impose penalties or suspend, revoke or rescind a
license for failure to comply with the provisions of the
certificate.
(d) A parking authority of a city of the first class may
adopt reasonable regulations relating to enforcement under this
section that do not impose additional burdens on the
transportation network company and are consistent with those
imposed by the commission on transportation network companies
under the certificate of public convenience. A transportation
network company driver operating in a city of the first class
may not solicit or accept a prearranged ride at any of the
following locations:
(1) A designated taxi stand, no stopping or standing zone or
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other area where a personal vehicle may not enter at an
international airport owned by the city of the first class and
located in whole or in part in the city of the first class.
(2) A designated taxi stand, no stopping or standing zone or
other area where a personal vehicle may not enter at a train
station owned by AMTRAK located in the city of the first class.
(3) Organized lines of taxis at hotels utilized to provide
services to patrons and visitors at the hotel.
(4) The following shall apply to a city of the first class:
(i) The authority may issue an order to a transportation
network company requiring disqualification of a driver from
being a transportation network company driver if during any
three-year period the driver commits five or more violations of
the regulations promulgated under this section.
(ii) An authority directive to the transportation network
company to disqualify a driver from being a transportation
network company driver may occur only after the filing and
adjudication of a formal complaint pursuant to 52 Pa. Code Ch.
1005 (relating to formal proceedings) , by which the
transportation network company shall be afforded full due
process, including notice and opportunity to be heard.
(iii) The authority may adopt regulations to allow
reinstatement of a driver following an appropriate
disqualification period and compliance with any conditions
imposed by the authority.
(iv) The authority may only confiscate the vehicle of a
driver if the driver continues to provide service while
disqualified or following suspension or revocation of a
transportation network company's license by the commission.
(e) A transportation network company operating in a city of
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the first class shall pay to the city's parking authority an
amount equal to one per cent (1%) of the gross receipts from all
fares charged to all passengers for prearranged rides that
originate in the city of the first class. The amount assessed
shall be remitted on a quarterly basis and deposited into a
restricted receipts account in the State Treasury. The Treasurer
shall, beginning January 1, 2016, distribute sixty-six and
sixty-seven hundredths per cent (66.67%) to a school district of
the first class and thirty-three and three tenths per cent
(33.3%) to the parking authority of the city of the first class
on a quarterly basis.
(f) For the purpose of this section, a transportation
network company shall mean a motor carrier service that uses an
online application, software or Internet website to provide
prearranged rides to passengers.
(g) This section shall expire December 31, 2016. (RESERVED).
Section 4. The act is amended by adding an article to read:
ARTICLE XXVIII-D
RACE HORSE INDUSTRY REFORM
(a) Preliminary Provisions
Section 2801-D. Definitions.
The following words and phrases when used in this article
shall have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
"Account." An account for account wagering with a specific
identifiable record of deposits, wagers and withdrawals
established by an account holder and managed by the licensed
racing entity or secondary pari-mutuel organization.
"Account holder." An individual who successfully completed
an application and for whom the licensed racing entity or
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secondary pari-mutuel organization has opened an account.
"Advance deposit account wagering system." A system by which
wagers are debited and payouts are credited to an advance
deposit account held by a licensed racing entity or secondary
pari-mutuel organization on behalf of a person.
"Applicant." A person who, on his own behalf or on behalf of
another, is applying for permission to engage in an act or
activity which is regulated under the provisions of this
article. If the applicant is a person other than an individual,
the commission shall determine the associated persons whose
qualifications are necessary as a precondition to the licensing
of the applicant.
"Backside area." An area of the racetrack enclosure that is
not generally accessible to the public and which includes, but
is not limited to, a facility commonly referred to as a barn,
paddock enclosure, track kitchen, recreation hall, backside
employee quarters and training track, and roadways providing
access to the area. The term does not include an area of the
racetrack enclosure which is generally accessible to the public,
including the various buildings commonly referred to as the
grandstand or the racing surface and walking ring.
"Breakage." The odd cents of redistributions to be made on
contributions to pari-mutuel pools exceeding a sum equal to the
next lowest multiple of ten.
"Clean letter of credit." A letter of credit which is
available to the beneficiary against presentation of only a
draft or receipt.
"Commission." The State Horse Racing Commission.
"Commissioner." An individual appointed to and sworn in as a
member of the commission in accordance with section 2811-D(b).
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"Conviction." A finding of guilt or a plea of guilty or nolo
contendere, whether or not a judgment of sentence has been
imposed as determined by the law of the jurisdiction in which
the prosecution was held. The term does not include a conviction
that has been expunged or overturned or for which an individual
has been pardoned or an order of accelerated rehabilitative
disposition.
"Electronic wagering." A method of placing or transmitting a
legal wager by an individual in this Commonwealth through
telephone, electromechanical, computerized system or any other
form of electronic media approved by the commission and accepted
by a secondary pari-mutuel organization or a licensed racing
entity or the licensed racing entity's approved off-track
betting system located in this Commonwealth.
"Evergreen clause." A term in a letter of credit providing
for automatic renewal of the letter of credit.
"Ex parte communication." An off-the-record communication
engaged in or received by a commissioner of the commission
regarding the merits of, or any fact in issue relating to, a
pending matter before the commission or which may reasonably be
expected to come before the commission in a contested on-the-
record proceeding. The term shall not include:
(1) An off-the-record communication by a commissioner,
the Department of Revenue, Pennsylvania State Police,
Attorney General or other law enforcement official, prior to
the beginning of the proceeding solely for the purpose of
seeking clarification or correction to evidentiary materials
intended for use in the proceedings.
(2) A communication between the commission or a
commissioner and legal counsel.
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"Felony." An offense under the laws of this Commonwealth or
the laws of another jurisdiction, punishable by imprisonment for
more than five years.
"Financial interest." An ownership, property, leasehold or
other beneficial interest in an entity. The term shall not
include an interest which is held or deemed to be held in any of
the following:
(1) Securities that are held in a pension plan, profit-
sharing plan, individual retirement account, tax-sheltered
annuity, a plan established under section 457 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 457), or
any successor provision, deferred compensation plan whether
qualified or not qualified under the Internal Revenue Code of
1986, or any successor provision or other retirement plan
that:
(i) Is not self-directed by the individual.
(ii) Is advised by an independent investment adviser
who has sole authority to make investment decisions with
respect to contributions made by the individual to these
plans.
(2) A tuition account plan organized and operated under
section 529 of the Internal Revenue Code of 1986 that is not
self-directed by the individual.
(3) A mutual fund where the interest owned by the mutual
fund in a licensed racing entity does not constitute a
controlling interest as defined in 4 Pa.C.S. § 1103 (relating
to definitions).
"Horse race meeting." A specified period and dates each year
during which a licensed racing entity is authorized to conduct
live racing or pari-mutuel wagering as approved by the
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commission.
"Horse racing." Standardbred horse racing and thoroughbred
horse racing.
"Horsemen's organization." A trade association which
represents the majority of owners and trainers who own and race
horses at a racetrack.
"Immediate family." A spouse, parent, brother, sister or
child.
"Irrevocable clean letter of credit." A clean letter of
credit which cannot be canceled or amended unless there is an
agreement to cancel or amend among all parties to the letter of
credit.
"Land mile." A unit of distance equal to 1,609.3 meters or
5,280 feet, as measured in a straight line.
"Licensed racing entity." Any person that has obtained a
license to conduct live thoroughbred or harness horse race
meetings respectively with pari-mutuel wagering from the
commission.
"Licensee." The holder of a license issued under this
article.
"Nominal change in ownership." The sale, pledge,
encumbrance, execution of an option agreement or other transfer
of less than 5% of the equity securities or other ownership
interest of a person whose percentage ownership does not affect
the decisions of the licensed racing entity.
"Nonprimary location." Any facility in which pari-mutuel
wagering is conducted by a licensed racing entity pursuant to
this article other than the racetrack where live racing is
conducted .
"Ownership interest." Owning or holding, or being deemed to
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hold, debt or equity securities or other ownership interest or
profit interest.
"Pari-mutuel wagering." A form of wagering, including
manual, electronic, computerized and other forms as approved by
the commission, on the outcome of a horse racing event in which
all wagers are pooled and held by a licensed racing entity or
secondary pari-mutuel organization for distribution of the total
amount, less the deductions authorized by law, to holders of
winning tickets.
"Person." Any natural person, corporation, foundation,
organization, business trust, estate, limited liability company,
license corporation, trust, partnership, limited liability
partnership, association or any other form of legal business
entity.
"Primary market area of a racetrack." The land area included
in a circle drawn with the racetrack as the center and a radius
of 35 land miles.
"Principal." Any of the following individuals associated
with a partnership, trust association, limited liability company
or corporation:
(1) The chairman and each member of the board of
directors of a corporation.
(2) Each partner of a partnership and each participating
member of a limited liability company.
(3) Each trustee and trust beneficiary of an
association.
(4) The president or chief executive officer and each
other officer, manager and employee who has policy-making or
fiduciary responsibility within the organization.
(5) Each stockholder or other individual who owns, holds
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or controls, either directly or indirectly, 5% or more of
stock or financial interest in the collective organization.
(6) Any other employee, agent, guardian, personal
representative, lender or holder of indebtedness who has the
power to exercise a significant influence over the
applicant's or licensee's operation.
"Racetrack." The physical facility where a licensed racing
entity conducts thoroughbred or standardbred HORSE race meetings
respectively with pari-mutuel wagering.
"Racetrack enclosure." For purposes of this article, the
term "racetrack enclosure," with respect to each licensed racing
entity , shall be deemed to include at least one primary
racetrack location at which horse race meetings authorized to be
held by the licensed racing entities are conducted, including
the grandstand, frontside and backside facilities and all
primary, nonprimary, contiguous and noncontiguous locations of
the licensed racing entity which are specifically approved by
the commission for conducting the pari-mutuel system of wagering
on the results of horse racing held at such meetings or race
meetings conducted by another licensed racing entity or
transmitted to such locations by simulcasting.
"Racing vendor." A person who provides goods or services to
a licensed racing entity directly related to racing or the
racing product, as determined by the commission.
"Secondary market area of a racetrack." The land area
included in a circle drawn with the racetrack as the center and
a radius of 50 land miles, not including the primary market area
of the racetrack.
"Secondary pari-mutuel organization." A licensed entity,
other than a licensed racing entity, that offers and accepts
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pari-mutuel wagers. A person or entity that provides to a
licensed racing entity hardware, software, equipment, content or
services used to manage, conduct, operate or record pari-mutuel
wagering activity by or from residents of this Commonwealth
shall not be deemed to be a secondary pari-mutuel organization
solely by virtue of the provision of the assets or services.
"Simulcast." Live video and audio transmission of a race and
pari-mutuel information for the purpose of pari-mutuel wagering
at locations other than the racetrack where the race is run.
"Standardbred horse racing" or "harness racing." A form of
horse racing in which the horses participating are attached "in
harness" to a sulky or other similar vehicle, at a specific
gait, either a trot or pace.
"Substantial change in ownership." The sale, pledge,
encumbrance, execution of an option agreement or another
transfer of 5% or more of the equity securities or other
ownership interest of a person whose percentage ownership
affects the decisions of the licensed racing entity.
"Thoroughbred horse racing." The form of horse racing in
which each participating horse is mounted by a jockey, is duly
registered with The Jockey Club of New York and engages in horse
racing on the flat, which may include a steeplechase or hurdle
race.
"Totalisator." A computer system used to pool wagers, record
sales, calculate payoffs and display wagering data on a display
device that is located at a pari-mutuel facility or nonprimary
location.
(b) Racing Oversight
Section 2811-D. State Horse Racing Commission.
(a) Establishment.--The State Horse Racing Commission is
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established as a commission within the Department of Agriculture
to independently regulate the operations of horse racing, the
conduct of pari-mutuel wagering and the promotion and marketing
of horse racing in this Commonwealth in accordance with this
article.
(b) Membership.--The commission shall consist of the
following members:
(1) Four members appointed by the Governor as follows:
(i) One individual representing the thoroughbred
horsemen's organizations in this Commonwealth, selected
from a list of at least 10 qualified individuals
submitted by the thoroughbred horsemen's organizations.
(ii) One individual representing a thoroughbred
breeder organization in this Commonwealth, selected from
a list of at least 10 qualified individuals submitted by
a thoroughbred breeder organization.
(iii) One individual representing the standardbred
horsemen's organizations in this Commonwealth, selected
from a list of at least 10 qualified individuals
submitted by the standardbred horsemen's organizations.
(iv) One individual representing a standardbred
breeder organization in this Commonwealth, selected from
a list of at least 10 qualified individuals submitted by
a standardbred breeder organization.
(2) One member appointed by each of the following, none
of whom shall be a member of a horsemen's organization or
breeder organization:
(i) The President pro tempore of the Senate.
(ii) The Minority Leader of the Senate.
(iii) The Speaker of the House of Representatives.
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(iv) The Minority Leader of the House of
Representatives.
(3) The Secretary of Agriculture or the secretary's
designee, who shall be a nonvoting ex officio member.
(4) One individual who is a licensed doctor of
veterinary medicine in this Commonwealth, who shall not be a
member of a horsemen's organization or breeder organization,
appointed by the Governor.
(5) Each appointing authority shall make its
appointments within 30 days of the effective date of this
section. Appointments to fill a vacancy shall be made within
10 days of the creation of the vacancy. An appointment shall
not be final until receipt by the appointing authority of a
background investigation of the appointee by the Pennsylvania
State Police, which shall be completed within 30 days of the
appointment. A person who has been convicted in a domestic or
foreign jurisdiction of a felony, infamous crime, gambling
offense or an offense related to fixing horse races or animal
cruelty may not be appointed to the commission.
(6) The following shall apply to appointees,
commissioners, employees and independent contractors:
(i) Each commissioner at the time of appointment
must be at least 25 years of age and must have been a
resident of this Commonwealth for a period of at least
one year immediately preceding appointment. Each
commissioner must remain a resident of this Commonwealth
during the term of membership on the commission.
(ii) Except for the commissioner appointed under
paragraph (3), a person may not be appointed a
commissioner if the person is a public official or party
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officer as defined in 4 Pa.C.S. § 1512 (relating to
financial and employment interests) in this Commonwealth
or any of its political subdivisions.
(iii) Each commissioner, employee and independent
contractor of the commission must sign an agreement not
to disclose confidential information.
(iv) Except for a commissioner appointed under
paragraph (1), a commissioner, employee or independent
contractor of the commission or other agency having
regulatory authority over horse racing under this article
may not be employed, hold an office or position or be
engaged in an activity which is incompatible with the
position, employment or contract.
(v) A commissioner may not be paid or receive a fee
or other compensation for any activity related to the
duties or authority of the commission other than
compensation and expenses provided by law.
(vi) A commissioner, employee or independent
contractor of the commission may not participate in a
hearing, proceeding or other matter in which the member,
employee or independent contractor, or the immediate
family thereof, has a financial interest in the subject
matter of the hearing or proceeding or other interest
that could be substantially affected by the outcome of
the hearing or proceeding without first fully disclosing
the nature of the interest to the commission and other
persons participating in the hearing or proceeding. The
commission shall determine if the interest is a
disqualifying interest that requires the disqualification
or nonparticipation of a commissioner, an employee or
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independent contractor.
(vii) At the time of appointment and annually
thereafter, each commissioner shall disclose the
existence of any financial interest in any applicant or
licensed racing entity and in an affiliate, intermediary,
subsidiary or holding company thereof held by the
commissioner or known to be held by a commissioner's
immediate family. The disclosure statement shall be filed
with each director established under subsection (d)(2)
and with the appointing authority for such commissioner
and shall be open to inspection by the public at the
office of the commission during the normal business hours
of the commission and posted on the commission's Internet
website for the duration of a commissioner's term and for
two years after a commissioner leaves office.
(viii) (Reserved).
(ix) A commissioner, employee or bureau director of
the commission may not directly or indirectly solicit,
request, suggest or recommend to any applicant, licensed
racing entity , licensed gaming entity or an affiliate,
intermediary, subsidiary or holding company thereof or to
an employee or agent thereof, the appointment or
employment of any person in any capacity by the
applicant, licensed racing entity , licensed gaming entity
or an affiliate, intermediary, subsidiary or holding
company thereof during the term of office or employment
with the commission.
(x) Except for a commissioner appointed under
paragraph (1), a commissioner may not accept employment
with an applicant for a horse racing license, a licensed
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racing entity, or an affiliate, intermediary, subsidiary
or holding company thereof, for a period of two years
from the termination of term of office.
(xi) A former commissioner may not appear before the
commission in any hearing or proceeding or participate in
any other activity on behalf of any applicant for a horse
racing license, a licensed racing entity, or an
affiliate, intermediary, subsidiary or holding company of
an applicant or licensed racing entity for a period of
two years from the termination of term of office.
(xii) A commissioner or employee of the commission
may not accept a complimentary service, place a wager or
be paid any prize from any wager on a horse race at a
racetrack or nonprimary location within this Commonwealth
or at any other racetrack or nonprimary location outside
this Commonwealth which is owned or operated by a
licensed racing entity or any of its affiliates,
intermediaries, subsidiaries or holding companies for the
duration of the commissioner's or employee's term of
office or employment. Nothing in this section shall be
construed to prohibit a commissioner appointed under
paragraph (1) from being awarded a purse or breeders'
award for the commissioner's participation in horse
racing.
(xiii) A commissioner who has been convicted during
his term of office in a domestic or foreign jurisdiction
of a felony, infamous crime, offense related to fixing or
rigging horse races or gambling offense shall, upon
conviction, be automatically removed from the commission
and shall be ineligible to become a commissioner in the
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future.
(xiv) The following shall apply to an employee of
the commission, who is not subject to a collective
bargaining agreement, whose duties substantially involve
licensing, enforcement, development of law, promulgation
of regulations or development of policy, relating to
horse racing under this article or who has other
discretionary authority which may affect or influence the
outcome of an action, proceeding or decision under this
article, including the director of a bureau:
(A) The individual may not, for a period of two
years following termination of employment, accept
employment with or be retained by an applicant for a
horse racing license or a licensed racing entity or
by an affiliate, intermediary, subsidiary or holding
company of an applicant or a licensed racing entity.
(B) The individual may not, for a period of two
years following termination of employment, appear
before the commission in a hearing or proceeding or
participate in activity on behalf of any applicant,
licensee or licensed racing entity or on behalf of an
affiliate, intermediary, subsidiary or holding
company of any applicant, licensee or licensed racing
entity.
(C) This subparagraph shall not apply to an
employee subject to the jurisdiction of the
Pennsylvania Supreme Court under section 10(c) of
Article V of the Constitution of Pennsylvania.
(xv) Nothing under subparagraph (xiv) shall prevent
a current or former employee of the commission from
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appearing before the commission in a hearing or
proceeding as a witness or testifying as to a fact or
information.
(xvi) The State Ethics Commission shall issue a
written determination of whether a person is subject to
subparagraph (xiv) upon the written request of the person
or the person's employer or potential employer. A person
that relies in good faith on a determination issued under
this paragraph shall not be subject to any penalty for an
action taken, if all material facts set forth in the
request for the determination are correct.
(xvii) The State Ethics Commission shall publish a
list of all employment positions within the commission
whose duties would subject the individuals in those
positions to the provisions of subparagraph (xiv). The
commission shall assist the State Ethics Commission in
the development of the list, which shall be published by
the State Ethics Commission in the Pennsylvania Bulletin
biennially and posted by the commission on the
commission's Internet website. Upon request, employees of
the commission shall have a duty to provide the State
Ethics Commission with adequate information to accurately
develop and maintain the list. The State Ethics
Commission may impose a civil penalty under 65 Pa.C.S. §
1109(f) (relating to penalties) upon an individual who
fails to cooperate with the State Ethics Commission under
this subparagraph. An individual who relies in good faith
on the list published by the State Ethics Commission
shall not be subject to any penalty for a violation of
subparagraph (xiv).
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(xviii) A commissioner may not solicit, request,
suggest or recommend the employment by the commission of
an immediate family member.
(xix) If a commissioner violates any provision of
this section, the appointing authority may remove the
person from the commission. A commissioner removed under
this paragraph shall, for a period of five years
following removal, be prohibited from future appointment
to the commission and shall be prohibited from applying
for a license , permit or other authorization under this
article and from becoming an independent contractor with
the commission.
(xx) Except for a commissioner appointed under
paragraph (1), a commissioner or employee of the
commission may not directly or indirectly have an
ownership interest in a race horse which is entered in a
horse race meeting in this Commonwealth.
(7) A commissioner shall not be personally liable for
any of the following:
(i) Obligations of the commission.
(ii) Actions which were within the scope of their
office and made in good faith.
(b.1) Initial appointments to commission.--
(1) Appointees initially appointed under subsection (b)
shall serve an initial term of two years and until their
successors are appointed and qualified.
(2) An appointment to fill a vacancy created by a
commissioner appointed in accordance with paragraph (1) shall
be for the remainder of the unexpired term.
(b.2) Terms of office.--Upon the expiration of a term of a
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commissioner appointed under subsections (b) and (b.1), the
following shall apply:
(1) The term of office of a gubernatorial appointee
shall be three years and until a successor is appointed and
qualified.
(2) The term of office of a legislative appointee shall
be two years and until a successor is appointed and
qualified.
(3) A legislative appointee shall serve no more than
three full consecutive terms.
(4) A gubernatorial appointee shall serve no more than
two full consecutive terms.
(5) An appointment to fill a vacancy shall be for the
remainder of the unexpired term.
(6) A commissioner appointed to fill a vacancy under
paragraph (3) may serve three full terms following the
expiration of the term related to the vacancy.
(7) A commissioner appointed to fill a vacancy under
paragraph (4) may serve two full terms following the
expiration of the term related to the vacancy.
(c) Chairperson.--The governor shall appoint the chairperson
of the commission.
(c.1) Compensation.--Commissioners shall be reimbursed for
documented expenses incurred in the performance of their
official duties and except for commissioners appointed under
subsection (b)(3), commissioners shall be paid $300 $150 per
diem.
(c.2) Meetings.--The commission shall meet at least once a
month and at other times as the commission chairperson deems
necessary. Public notice of the time and place of meetings of
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the commission shall be given in accordance with 65 Pa.C.S. Ch.
7 (relating to open meetings).
(d) Office of Horse Racing.--There is hereby established
within the commission an Office of Horse Racing.
(1) The office shall be comprised of the following:
(i) The Bureau of Thoroughbred Horse Racing shall
have oversight over the conduct of thoroughbred horse
racing in this Commonwealth.
(ii) The Bureau of Standardbred Horse Racing shall
have oversight over the conduct of standardbred horse
racing in this Commonwealth.
(2) There shall be a Director of the Bureau of
Thoroughbred Horse Racing and a director of the Bureau of
Standardbred Horse Racing to serve and report to the
commission. The director of each bureau shall not be
supervised by the Department of Agriculture. The commission
shall assign the directors duties and responsibilities as
required to fulfill the commission's obligations under this
ARTICLE or any other act. The commission may, by order,
delegate duties and responsibilities to the bureau director
as the commission determines necessary to discharge the day-
to-day licensing, enforcement and administrative operations
of the commission. The director of each bureau established in
this section must meet all of the following requirements:
(i) Has either:
(A) been certified as a racing official; or
(B) has at least five years' experience in the
management of a licensed racing entity or equivalent
racing experience.
(ii) Any other criteria established by the
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commission.
(3) Each bureau established under this subsection shall
have the following powers and duties:
(i) Evaluate and review all applicants and
applications for a thoroughbred horse racing or
standardbred horse racing license. A bureau under this
section shall be prohibited from disclosing any portion
of an evaluation to a commissioner prior to the decision
relating to the applicant's suitability for licensure by
the commission.
(ii) Inspect and monitor licensees and other persons
regulated under this article for noncriminal violations,
including potential violations referred to either bureau
by the commission or other person.
(iii) Monitor horse racing operations to ensure
compliance with this article.
(iv) Inspect and examine licensed racing entities
and racetrack facilities.
(A) Inspections may include the review and
reproduction of any document or record.
(B) Examinations may include the review of
accounting, administrative and financial records,
management control systems, procedures and other
records.
(v) Refer possible criminal violation to law
enforcement.
(vi) Cooperate in the investigation and prosecution
of any criminal violation.
(vii) Issue administrative subpoenas to effectuate
an inspection and review under this paragraph, administer
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oaths and take testimony as necessary for the
administration of this article.
(e) Jurisdiction.--The commission shall have jurisdiction
and regulatory authority over the following:
(1) Pari-mutuel wagering and other horse racing
activities in this Commonwealth.
(2) A licensed person engaged in pari-mutuel horse
racing activities.
(3) Out-of-competition drug testing, which shall include
the random drug testing of any horse entered in a race,
notwithstanding the physical location of the horse, stabled
on the grounds or shipped into a licensed racing entity's
facility.
(4) The conduct of horse racing in this Commonwealth.
(f) Voting.--
(1) Except as otherwise provided in this subsection,
actions of the commission shall be subject to a simple
majority vote of the commission.
(2) A qualified majority vote consisting of the two
commissioners appointed under subsection (b)(1)(i) and (ii)
and as many votes of the remaining voting commissioners as
necessary to constitute a majority of those commissioners
voting shall be required to:
(i) Approve, issue, deny or condition a license to
conduct thoroughbred horse racing RACE meetings under
section 2818-D.
(ii) Adopt regulations governing thoroughbred horse
racing RACE meetings and regulations governing medication
under this section.
(iii) Employ a director of the Bureau of
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Thoroughbred Horse Racing under subsection (d)(2).
(3) A qualified majority vote consisting of the two
commissioners appointed under subsection (b)(1)(iii) and (iv)
and as many votes of the remaining voting commissioners as
necessary to constitute a majority of those commissioners
voting shall be required to:
(i) Approve, issue, deny or condition a license to
conduct standardbred horse racing RACE meetings under
section 2818-D.
(ii) Adopt rules and regulations governing
standardbred horse racing RACE meetings and regulations
governing medication under this section.
(iii) Employ a director of the Bureau of
Standardbred Horse Racing under subsection (d)(2).
(4) Commissioners appointed under subsection (b)(1)(i)
and (ii) shall be disqualified and must abstain from voting
on any matter under paragraph (3).
(5) Commissioners appointed under subsection (b)(1)(iii)
and (iv) shall be disqualified and must abstain from voting
on any matter under paragraph (2).
(6) If one or more appointees under subsection (b)(1) is
not participating in voting on any matter upon which they are
otherwise eligible to vote under paragraph (2) or (3), the
qualified majority shall consist of the remaining appointee
under the respective subparagraph of subsection (b)(1)
pursuant to which the nonparticipating commissioner has been
appointed, if any, and as many commissioners as necessary to
constitute a majority of those commissioners voting.
(g) Records.--The commission shall maintain at its office
the following:
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(1) All documents, digital or nondigital, provided to or
filed with the commission relating to the regulation of horse
racing and pari-mutuel wagering under this article. The
commission may accept digital signatures on documents
provided or filed and documents may be designated as
confidential in accordance with commission policy.
(2) A docket setting forth the names of all stockholders
in a licensed racing entity. The docket shall be available
for public inspection during normal business hours of the
commission.
(3) The number of shares held by each stockholder.
(4) A complete record of proceedings of the commission
relating to horse racing and pari-mutuel wagering.
(h) Rules and regulations.--The following shall apply:
(1) All rules and regulations promulgated under the
former act of December 11, 1967 (P.L.707, No.331), referred
to as the Pennsylvania Thoroughbred Horse Racing Law, or the
former act of December 22, 1959 (P.L.1978, No.728), referred
to as the Pennsylvania Harness Racing Law, shall remain in
effect except to the extent that they are in direct conflict
with this article. The commission may adopt, amend, revise or
alter the rules and regulations as the commission deems
necessary.
(2) The commission shall promulgate rules and
regulations necessary for the administration and enforcement
of this article. Except as provided in this paragraph and
paragraph (3), regulations shall be promulgated in accordance
with law.
(3) In order to facilitate the prompt implementation of
this article, regulations promulgated by the commission shall
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be deemed temporary regulations which shall not expire for a
period of three years following publication. Temporary
regulations shall not be subject to:
(i) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(ii) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(iii) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(4) The commission's authority to promulgate temporary
regulations under paragraph (3) shall expire three years
after the effective date of this section. Regulations adopted
after this period shall be promulgated as provided by law.
(i) Application.--The commission shall develop an
application for applicants seeking a license to conduct horse
racing pursuant to this article.
(j) Licenses.--Each license to conduct horse racing or any
other activity under this article issued prior to January 1,
2017, shall remain in effect for the remainder of the term for
which the license was issued unless revoked or suspended.
Beginning January 1, 2017, a license shall be renewed or a new
license shall be issued in accordance with this article.
(k) Report of commission.--Twelve months after the effective
date of this section and every year on that date thereafter, the
commission, through the Department of Agriculture, shall issue a
report to the Governor and each member of the General Assembly
on the general operation of the commission and each licensee's
performance, including number and win per race and total gross
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revenue at each facility of a licensed racing entity during the
previous year, all taxes, fees, fines and other revenues
collected and, where appropriate, disbursed, the costs of
operation of the commission, all hearings conducted and the
results of the hearings and other information that the
commission deems necessary and appropriate. Notwithstanding any
other reporting requirements in 4 Pa.C.S. § 1211 (relating to
reports of board), the Pennsylvania Gaming Control Board and the
Department of Agriculture must jointly submit the report under
this subsection relating to racing on an annual basis.
(l) Record of proceedings.--The commission shall cause to be
made and kept a record of all proceedings held at public
meetings of the commission. A verbatim transcript of those
proceedings shall be prepared by the commission upon the request
of any person and the payment by that person of the costs of
preparation.
(m) Public records.--The commission shall annually post on
its Internet website, a list of all the itemized expenses of
employees and commissioners that were or are to be reimbursed
from the State Racing Fund. The list shall identify the nature
of the expense, the employee, member or the agency and employee
of the agency to which an expense is attributable. By October 1
of each year, a final report of all expenses described in this
subsection for the preceding fiscal year shall be posted on the
commission's Internet website and shall be submitted to the
Appropriations Committee of the Senate, the Agriculture and
Rural Affairs Committee of the Senate, the Appropriations
Committee of the House of Representatives and the Agriculture
and Rural Affairs Committee of the House of Representatives.
Information posted on the Internet website pursuant to this
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subsection shall be financial records for the purposes of and
subject to redaction under the Right-to-Know Law.
(n) Reimbursement.--The Department of Agriculture's
provision of shared administrative services, shared staff and
shared facilities to the commission must be reimbursed from the
State Racing Fund and shall be limited to actual costs of
providing the services, staff and facilities, including
salaries, benefits and expenses of employees providing the
shared administrative services. The Department of Agriculture
must retain records regarding administrative shared services
provided to the commission by a Department of Agriculture's
employee.
Section 2812-D. Additional powers of commission.
The commission shall regulate horse racing at which pari-
mutuel wagering is conducted and approve the number of racing
days allocated to each licensed racing entity. In addition to
any other powers of the commission:
(1) The commission shall promulgate regulations
regarding medication rules as required under Subarticle E.
(2) The following shall apply:
(i) The commission shall require an applicant under
this article to submit to fingerprinting for a report of
Federal criminal history record information.
(ii) The applicant must submit a full set of
fingerprints to the Pennsylvania State Police or the
Pennsylvania State Police's authorized agent for the
purpose or a record check. The Pennsylvania State Police
or the Pennsylvania State Police's authorized agent must
then submit the fingerprints to the Federal Bureau of
Investigation for the purpose of verifying the identity
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