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PRIOR PRINTER'S NO. 259
PRINTER'S NO. 505
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
352
Session of
2015
INTRODUCED BY VOGEL, YAW, YUDICHAK, VULAKOVICH, WOZNIAK, HUGHES,
WHITE, RAFFERTY, SCARNATI AND WARD, JANUARY 28, 2015
SENATOR VOGEL, AGRICULTURE AND RURAL AFFAIRS, AS AMENDED,
FEBRUARY 24, 2015
AN ACT
Amending the act of December 17, 1981 (P.L.435, No.135),
entitled "An act providing for the regulation of pari-mutuel
thoroughbred horse racing and harness horse racing
activities; imposing certain taxes and providing for the
disposition of funds from pari-mutuel tickets," in general
provisions, further providing for definitions; repealing
provisions relating to the State Horse Racing Commission and
State Harness Racing Commission; in racing oversight,
providing for racing oversight, for pari-mutuel wagering
licensing and for advance deposit wagering; in medication
rules and enforcement provisions, further providing for
mandatory requirements for medication rules, for
establishment of Pennsylvania Race Horse Testing Program, for
costs for enforcement of medication rules; and providing for
the cessation of the State Horse Racing Commission and the
State Harness Racing Commission.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 102 of the act of December 17, 1981
(P.L.435, No.135), known as the Race Horse Industry Reform Act,
amended or added May 16, 1986 (P.L.205, No.63) and November 30,
1988 (P.L.1090, No.127), is amended to read:
Section 102. Definitions.
The following words and phrases when used in this act shall
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have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
["Air mile." A unit of distance equal to 1,852 kilometers or
5,280 feet for purposes of this act.]
"Advance deposit account wagering." A form of pari-mutuel
wagering in which an individual may establish an account with a
person licensed by the commission, and may place a pari-mutuel
wager through that account.
"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 act. 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." As defined in 4 Pa.C.S. § 1103 (relating to
definitions).
"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.
["Commissions." The State Horse Racing Commission and the
State Harness Racing Commission.
"Commissioners." The persons appointed by the Governor and
confirmed by the Senate who serve on the State [Horse Racing
Commission or the State Harness] Racing Commission and who
administer the applicable provisions of this act.]
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"Commissioner." An individual appointed to and sworn in as a
member of the commission in accordance with section 201-A(c)
201-A(B) .
"Conviction." As defined in 4 Pa.C.S. § 1103 (relating to
definitions).
"Electronic wagering." A legal wager placed by an individual
in this Commonwealth related only to the outcome of a horse race
taking place in this Commonwealth, placed or transmitted by an
individual through telephone or any electronic media approved by
the commission and accepted by a licensed racing entity or its
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 or hearing officer of
the commission regarding the merits of, or any fact in issue
relating to, a pending matter before the commission or hearing
officer or which may reasonably be expected to come before the
commission or hearing officer in a contested on-the-record
proceeding. The term shall not include:
(1) An off-the-record communication by a commissioner or
hearing officer of the commission, 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.
"Felony." As defined in 4 Pa.C.S. § 1213(4) (relating to
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license or permit prohibition).
"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
COMMISSION.
"Horse racing." Standardbred horse racing and thoroughbred
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horse racing.
"Horseman'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.
["Licensed corporations." The corporations that have
obtained a license from either the State Horse Racing Commission
or the State Harness Racing Commission to conduct thoroughbred
or harness horse race meetings respectively with pari-mutuel
wagering.]
"Licensed advance deposit account wagering entity." A person
licensed by the commission to conduct advance deposit account
wagering and accept deposits and wagers, issue receipts or other
confirmation to the account holder evidencing such deposits and
wagers, and transfer credits and debits to and from accounts.
"Licensed entity." As defined in 4 Pa.C.S. § 1103 (relating
to definitions).
"Licensed facility." As defined in 4 Pa.C.S. § 1103
(relating to definitions).
"Licensed entity representative." A person, including an
attorney, agent or lobbyist, acting on behalf of or authorized
to represent the interest of any applicant, licensee, permittee
or other person authorized by the commission to engage in any
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act or activity regulated by the commission under this act
regarding any matter before, or which may be reasonably expected
to come before, the commission. The term shall include a person
representing a horseman's organization or a horse breeder's
organization.
"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 act.
"Nonprimary location." Any facility in which pari-mutuel
wagering is conducted by a licensed racing entity pursuant to
this act other than the [primary racetrack location] racetrack
where live racing is conducted.
["Nonprimary location statement." The written statement
pursuant to this act submitted to the appropriate commission by
a licensed corporation planning to establish a nonprimary
location.]
"Ownership interest." Owning or holding, or being deemed to
hold, debt or equity securities or other ownership interest or
profit interest.
"Permittee." The holder of a permit issued under this act.
"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.
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"Racetrack." The physical facility where a licensed
[corporation] racing entity conducts thoroughbred or [harness]
standardbred race meetings respectively with pari-mutuel
wagering.
"Racetrack enclosure." For purposes of this act, the term
"racetrack enclosure," with respect to each licensed
[corporation] 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 [corporation] racing
entities are conducted, and all primary, nonprimary, contiguous
and noncontiguous locations of the licensed [corporation] racing
entity which are specifically approved by the [appropriate]
commission for conducting the pari-mutuel system of wagering on
the results of horse [races] racing held at such meetings or
race meetings conducted by another licensed [corporation] racing
entity or televised to such locations by simulcasting.
"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.
"Simulcast." The transmission of live electronically
televised video/audio races from the host racetrack to the [race
track] racetrack receiving the television transmission.
"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.
"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
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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.
Section 2. Chapter 2 of the act is repealed:
[CHAPTER 2
STATE HORSE RACING COMMISSION AND STATE HARNESS
RACING COMMISSION
Section 201. Establishment of the commissions.
(a) The State Horse Racing Commission is hereby established
as a departmental administrative commission within the
Department of Agriculture. The commission shall have general
jurisdiction over all pari-mutuel thoroughbred horse racing
activities in the Commonwealth and the corporations engaged
therein. For the purposes of this act, "thoroughbred horse
racing" means that form of horse racing in which each
participating horse is mounted by a jockey, is duly registered
with the Jockey Club, New York, New York and engages in races on
the flat. Thoroughbred horse racing may include a steeplechase
or hurdle race. The commission shall consist of three members
who shall be appointed by the Governor, by and with the advice
and consent of the Senate. Each commissioner shall hold office
for a term of three years and until a successor is qualified.
(b) The State Harness Racing Commission is hereby
established as a departmental administrative commission within
the Department of Agriculture. The commission shall have general
jurisdiction over all pari-mutuel harness racing activities in
the Commonwealth and the corporations engaged therein. The
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commission shall consist of three members who shall be appointed
by the Governor, by and with the advice and consent of the
Senate. Each commissioner shall hold office for a term of three
years and until a successor is qualified.
(c) The commissioners shall be reimbursed for documented
expenses incurred in the performance of their official duties.
The commissioners shall be paid $150 per diem for performing
their duties as directed by the Secretary of Agriculture. One of
the commissioners for each commission shall be appointed by the
Governor as chairperson. The commissioner appointed by the
Governor as chairperson shall serve in that position at the
pleasure of the Governor. The Secretary of Agriculture or his
designee shall be a nonvoting ex officio member of the
commissions. The commissions shall meet at least once a month
and at other times as the Secretary of Agriculture or the
commission chairperson deems necessary. Adequate public notice
of the time and place of the meetings shall be given. A
commissioner who fails to attend three consecutive meetings
shall be subject to removal. A commissioner shall be excused
from meetings due to illness or death of an immediate family
member. All commissioners shall be licensed under the provisions
of section 213.
(d) Each commission shall engage an executive secretary,
deputies, secretaries, officers and representatives as it may
deem necessary, who shall serve during its pleasure. The
commissions shall also engage other employees as they see fit
and whose duties shall be prescribed by the commissions and
whose compensation shall be fixed by the commissions within the
appropriations available. Legal counsel for the commissions
shall be appointed in accordance with the act of October 15,
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1980 (P.L.950, No.164), known as the "Commonwealth Attorneys
Act." Each commission shall be subject to the provisions of the
act of April 9, 1929 (P.L.177, No.175), known as "The
Administrative Code of 1929," as to classification and
compensation for all its employees.
(e) It shall be the duty of the executive secretary to keep
a full and faithful record of the proceedings of the
commissions, preserve at the general office of the commissions
all books, maps, documents and papers entrusted to the executive
secretary's care, prepare for service the papers and notices as
may be required by the commissions and perform other duties as
the commissions may prescribe. It shall be the duty of the
executive secretary to keep, at the offices of the commissions,
a docket setting forth the names of all stockholders in all
corporations licensed under this act, the number of shares held
by each stockholder and the date on which each shareholder
acquired stock in the licensed corporation. The docket shall be
open for public inspection. It shall be the duty of the
executive secretary to appear before the Appropriations
Committees of the Senate and the House of Representatives for
budgetary review and recommendations.
(f) The commissions or designated officers, employees or
agents of the commissions shall have the power to administer
oaths and examine witnesses and may issue subpoenas to compel
attendance of witnesses and production of all relevant and
material reports, books, papers, documents, correspondence and
other evidence. The commissions shall, annually, make a full
report to the Secretary of Agriculture of their proceedings for
the preceding calendar year and suggestions and recommendations
as they see fit. The commissions shall exercise their powers and
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duties in accordance with the provisions of "The Administrative
Code of 1929."
(g) The terms and termination dates of the terms of the
three commissioners who constitute the State Horse Racing
Commission under the act of December 11, 1967 (P.L.707, No.331),
referred to as the Pennsylvania Thoroughbred Horse Racing Law,
shall continue under this act. Any commissioner whose term has
already expired on the effective date of this act and who has
not been replaced by a new member or has not been confirmed for
another term, shall continue in his or her present status until
replaced by a new member or confirmed for another term.
(h) The terms and termination dates of the terms of the
three commissioners who constitute the State Harness Racing
Commission under the act of December 22, 1959 (P.L.1978,
No.728), referred to as the Pennsylvania Harness Racing Law,
shall continue under this act. Any commissioner whose term has
already expired on the effective date of this section and who
has not been replaced by a new member or has not been confirmed
for another term, shall continue in his or her present status
until replaced by a new member or confirmed for another term.
(i) All rules and regulations promulgated under the
provisions of the Pennsylvania Thoroughbred Horse Racing Law and
the Pennsylvania Harness Racing Law shall remain in effect
except to the extent that they are in direct conflict with the
provisions of this act. The commissions may amend, revise or
alter these rules and regulations as they deem necessary.
(j) All licenses issued under the provisions of section 11
of the Pennsylvania Thoroughbred Horse Racing Law and under the
provisions of section 9 of the Pennsylvania Harness Racing Law,
shall remain in effect for the remainder of the term for which
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these licenses were issued. After these licenses have expired,
all renewals or new licenses shall be issued under the
provisions of this act.
(k) All licenses issued to corporations under the provisions
of section 7 of the Pennsylvania Thoroughbred Horse Racing Law
and under the provisions of section 7 of the Pennsylvania
Harness Racing Law, shall continue with the same force and
effect and shall be governed by the provisions of section 209.
Section 202. General powers of the commissions.
(a) The State Horse Racing Commission shall have the power
to supervise all thoroughbred horse race meetings at which pari-
mutuel wagering is conducted. The State Harness Racing
Commission shall have the power to supervise all harness horse
racing meetings at which pari-mutuel wagering is conducted. The
commissions may adopt rules and regulations to effect the
purposes and provisions of this act.
(b) Without limiting the generality of the foregoing and in
addition to its other powers:
(1) Each commission shall have power to fix a minimum
charge for admission to horse race meetings at which pari-
mutuel wagering is conducted, but the minimum charge shall
not be less than 50¢ for general admission, exclusive of
taxes. The commissions shall have power to fix the charge for
admission of soldiers, sailors and marines, in uniform, at
one-half of the amount fixed for general admission, whether
or not the one-half of the amount fixed is less than the
minimum prescribed therein.
(2) Each commission shall at all times have in effect
rules and regulations as required under Chapter 3 regarding
medication rules and enforcement provisions.
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(3) The rules of the commissions shall also provide that
all winning pari-mutuel tickets must be presented for payment
before April 1 of the year following the year of their
purchase and failure to present the ticket within the
prescribed period of time shall constitute a waiver of the
right to participate in the award. After April 1 of the year
following, all licensed corporations will forward to the
State Treasurer through the Department of Revenue for credit
to the State Racing Fund all funds so held for the uncashed
tickets. Where it is shown to the satisfaction of the
appropriate commission and the Department of Revenue, through
substantiated and recorded data, that the reason for the
pari-mutuel ticket or tickets being outstanding and unclaimed
is loss, misplacement or theft within the confines and
control of the pari-mutuel department of any licensed
corporation and it is shown to the satisfaction of the
appropriate commission and the Department of Revenue that the
pari-mutuel ticket or tickets in question have been cashed by
the pari-mutuel department, the Department of Revenue, with
the approval of the appropriate commission, may adjust and
credit the licensed corporation's outstanding ticket account
accordingly on March 31 of the year following the year of
purchase or after a complete audit of the outstanding tickets
accounts have been performed. The licensed corporation shall
reimburse any employee who has been held personally
accountable and paid for the lost, misplaced or stolen
tickets.
(4) The commissions may adopt a general promotion
program to assist the licensed corporations in increasing
their attendance and average daily handle. Any expenditures
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for a promotional program shall be authorized and approved in
the same manner as other operational costs of the
commissions.
(5) In the event that a state bordering Pennsylvania
enacts a wagering tax scheme that may place Pennsylvania
horse race meetings at a competitive disadvantage in the
purses that can be offered for horse races, a licensed
corporation may petition the appropriate commission for an
emergency financial grant to augment its purse structure. If
the appropriate commission finds that the effect of the
enacted wagering tax scheme of a bordering state is to place
Pennsylvania horse race meetings at a competitive
disadvantage in purse structure, the appropriate commission
shall make an emergency financial grant to the petitioning
licensed corporation for augmentation to its purse structure
out of moneys that the commission has budgeted for this
purpose; provided, however, that the Secretary of Agriculture
and the Secretary of the Office of Budget and Administration
have also agreed to the grant.
(c) The State Harness Racing Commission shall have
jurisdiction over and shall promulgate regulations as necessary
for the proper administration of all racing conducted by a
county agricultural society or an independent agricultural
society, as provided for under section 5(1)(iii) and (iv) of the
act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania
Agricultural Fair Act."
Section 203.
(c) No corporation shall have the right to conduct any horse
race meet except on obtaining a license from the appropriate
commission and at the location or locations designated in its
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license or any amendment thereto or as approved at any time by
the commission as the place or places at which it was proposed
to conduct its business. This restriction shall not apply to any
corporation whose racing plant or usefulness, in the discretion
of the appropriate commissions, shall, for any reason beyond the
control of the corporation, be totally destroyed or so
substantially interfered with as to render same unfit for
continued operation. Pending the rebuilding or restoration of
its usefulness, or the making of the required repairs to the
plant or the part destroyed or damaged, the commissions may
license such corporation to conduct its horse race meetings at
any other suitable location.
Section 204. Filing of information concerning stock transfers;
necessity for commissions' approval.
(a) Whenever a transfer of stock comprising an interest of
5% or more in any licensed corporation, or comprising an
interest of 5% or more in any corporation which leases to a
licensed corporation the track facility at which it conducts
pari-mutuel horse races or comprising an interest of 5% or more
in any corporation which owns 25% or more of the stock of the
licensed corporation shall be made, there shall be filed,
simultaneously, with the corporation which issued such stock the
following:
(1) In duplicate, an affidavit executed by the
transferee of the interest stating that he is to be the sole
beneficial owner thereof, and whether or not he:
(i) has been convicted of a crime involving moral
turpitude;
(ii) has been engaged in bookmaking or other forms
of illegal gambling;
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(iii) has been found guilty of any fraud or
misrepresentation in connection with racing or breeding;
(iv) has been guilty of any violation or attempt to
violate any law, rule or regulation of any racing
jurisdiction, for which suspension from racing might be
imposed in such jurisdiction; or
(v) has violated any rule, regulation or order of
the commissions.
If the transferee of the interest is not, or is not to be,
the sole beneficial owner, there shall be annexed to the
affidavit of the transferee, and expressly stated in such
affidavit, a true and complete copy of all terms of the
agreement pursuant to which the interest in the corporation
is to be held by the transferee, including a detailed
statement of the interest of each person who is to have any
interest therein.
(2) In duplicate, an affidavit executed by each person
for whom the interest is to be held by the transferee,
setting forth whether or not the affiant:
(i) has been convicted of a crime involving moral
turpitude;
(ii) has engaged in bookmaking or other forms of
illegal gambling;
(iii) has been found guilty of any fraud or
misrepresentation in connection with racing or breeding;
(iv) has been guilty of any violation or attempt to
violate any law, rule or regulation of any racing
jurisdiction, for which suspension from racing might be
imposed in such jurisdiction; or
(v) has violated any rule, regulation or order of
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the commissions.
To each of the affidavits shall be annexed, and expressly
stated in such affidavit, a true and complete copy of all the
terms of the agreement pursuant to which the interest is to
be held by the transferee, including a detailed statement of
the interest of each person who is to have any interest
therein. The corporation shall file with the appropriate
commission one of each duplicate affidavits.
(b) If, after the filing of any affidavit required to be
filed, there shall be any change in the status of any affiant
with respect to any of the matters set forth in subsection (a)
(1) of the affidavit filed, the affiant shall file with the
corporation with which his affidavit was so filed a new
affidavit, executed by him in duplicate, setting forth the
change of status and the corporation shall file one of these
affidavits with the appropriate commission.
(c) Whenever any change shall be made in the amount, nature
or of the interest of any person having an interest of 5% or
more in any corporation, or any new interest of 5% or more shall
be created therein, without a transfer as provided, the record
owner of the stock, and each person whose interest has been
attempted to be changed or created, shall file with the
corporation which issued the stock, in duplicate, affidavits as
provided by subsection (a)(1) and (2), except that these
affidavits need not include the matter referred to in subsection
(a) unless then required pursuant to subsection (b) and one copy
thereof shall be filed by the corporation with the appropriate
commission.
(d) If the appropriate commission determines that it is
inconsistent with the public interest, convenience, or
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necessity, or with the best interest of racing generally, that
any person continue to be a stockholder of record, or the
beneficial owner of any interest in stock standing in the name
of another in any licensed corporation or of any corporation
which leases to such licensed corporation the track at which it
conducts pari-mutuel horse racing or which owned 25% or more of
the stock of the licensee, the appropriate commission shall have
full power and authority to order each stockholder or beneficial
owner to dispose of his stock or interest within a period of
time to be specified by the appropriate commission, which period
the appropriate commission shall have full power to extend.
(e) If the commissions shall make any order or direction as
provided in subsection (d), the person aggrieved shall be given
notice of the time and place of a hearing before the appropriate
commission, at which time the appropriate commission will hear
the person in reference thereto.
Section 205. Number of horse racing corporations.
(a) No more than six corporations shall be licensed by the
State Horse Racing Commission to conduct a pari-mutuel meet or
meets. No corporation licensed under this act to conduct harness
racing with pari-mutuel wagering or under the act of December
22, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
Harness Racing Law, shall be licensed to conduct thoroughbred
horse racing with pari-mutuel wagering.
(b) No more than five corporations shall be licensed by the
State Harness Racing Commission to conduct a pari-mutuel meet or
meets. No corporation licensed under this act to conduct
thoroughbred horse racing with pari-mutuel wagering or under the
act of December 11, 1967 (P.L.707, No.331), referred to as the
Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to
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conduct harness horse racing with pari-mutuel wagering.
Section 206. Responsibilities of the Department of Revenue.
The Department of Revenue is charged with the financial
administration of pari-mutuel wagering under this act, as
supplemented by the rules and regulations of the commissions.
The Department of Revenue shall have authority to prescribe the
forms and the system of accounting to be employed, and through
its representatives shall, at all times, have power of access
to, and examination of, any equipment relating to such wagering.
Section 207. Allocation of racing days.
(a) Up to 125 but no less than 25 racing days shall be
allocated to each licensed corporation conducting thoroughbred
horse race meetings in any calendar year; except, that upon
request, the State Horse Racing Commission may grant up to an
additional 25 racing days over the 125 days to a licensed
corporation in each calendar year, if racing meet schedules can
accommodate these extra days. Whenever two or more corporations
licensed to conduct racing at the same facility apply to the
State Horse Racing Commission for an allocation of racing days
at the same facility, the commission shall allocate the racing
days in the following manner:
(1) If there is an agreement between the licensed
corporations as to the allocation of racing days then as
provided for therein.
(2) If there is no agreement between the licensed
corporations as to the allocation of racing days, then
equally between them.
(b) No more than 125 racing days shall be allocated to each
licensed corporation conducting harness horse race meetings in
any calendar year. Every corporation shall hold its license
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under the provisions of section 209. The State Harness Racing
Commission shall allocate the racing days in accordance with the
following guidelines:
(1) A licensed corporation that has an ownership
interest in the facility at which the racing days are to be
conducted shall be granted up to 125 racing days in any
calendar year upon request to the State Harness Racing
Commission. The State Harness Racing Commission shall grant
all racing days requested by licensed corporations described
in this paragraph before any other racing days are granted to
any other licensed corporation that desires to conduct a meet
at the same facility owned in part or in whole by a licensed
corporation that also desires to conduct a meet there.
(2) Whenever one or more licensed corporations that have
an ownership interest in the facility at which the racing
days are to be conducted apply to the State Harness Racing
Commission for an allocation of racing days, the State
Harness Racing Commission shall allocate an equal number of
racing days to each licensed corporation or to each licensed
corporation based upon an agreement between the licensed
corporations as to the allocation of racing days.
(3) Upon request the State Harness Racing Commission may
grant up to an additional 25 racing days over the 125 racing
days to a licensed corporation in each calendar year, and the
commission may grant up to 50 additional days of racing if
that corporation is the only corporation operating at the
facility, if racing meet schedules can accommodate these
extra racing days.
(4) For purposes of this section, an ownership interest
shall mean that a licensed corporation directly or through a
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parent or subsidiary has at least 35% equity interest in the
track facility at which it conducts harness horse race
meetings or is the primary tenant at such facility. For
purposes of this subsection, a primary tenant shall be that
licensed corporation, if any, which is a tenant conducting
horse race meetings at a track facility at which no licensed
corporation conducting horse race meetings has directly or
through a parent or subsidiary at least a 35% equity interest
in such facility, and if there is more than one such tenant
at any such facility during the year prior to the year for
which dates are requested, then among or between such tenants
the primary tenant, if any, shall be designated by agreement
among or between those licensed corporations which propose to
conduct horse race meetings at the said track facility during
the year for which dates are requested.
(c) The commissions shall certify to the Secretary of the
Department of Revenue within 20 days after the allocation of
racing days to licensed corporations the following information:
(1) the names and addresses of the corporations;
(2) the names and addresses of the presidents and
general managers of the corporations;
(3) the names and locations of the facilities where the
racing days are to be conducted;
(4) the number of racing days allocated to each
corporation; and
(5) a numbered list of each racing day assigned to each
calendar day of the year for the purposes of taxation.
(d) If a racing day is cancelled by a licensed corporation
for reasons beyond its control, the appropriate commission shall
grant the licensed corporation the right to conduct that racing
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day in the same or the next ensuing calendar year, if schedules
permit. The racing day for purposes of taxation under section
222 shall be at the lowest tax rate at which the licensed
corporation conducted a racing day during that year.
Section 208. State admissions taxes.
(a) Every corporation holding a thoroughbred horse race
meeting under this act shall collect, in addition to the
admission price of tickets sold or otherwise disposed of, for
each meeting held by the corporation, a tax equivalent to 15% of
the admission price, or 15¢ whichever is greater. In case of
failure to collect the tax, the tax shall be imposed upon the
corporation holding the race meeting. The tax shall be paid to
the Department of Revenue within ten days of collection. The
amounts collected shall be paid into the State Treasury to the
credit of the State Racing Fund. Before any corporation liable
to pay the tax shall hold any race meeting, or exercise any of
the powers conferred by this act, the corporation shall pay all
taxes due, and shall file a statement with the Department of
Revenue containing the name of the place and stating the time
when the races are to be held. Nothing in this section shall
apply to a race meeting conducted by any state, county or other
agricultural association. Retroactive to September 1, 1981 and
thereafter, the admission tax shall be decreased to a tax
equivalent to 10% of the admission price. Then on September 1,
1982 and thereafter, the admission tax shall be decreased to a
tax equivalent to 5% of the admission price.
(b) Every corporation holding a harness horse race meeting
shall collect, in addition to the admission price of tickets
sold or otherwise disposed of, for each such meeting held by the
corporation, a tax equivalent to 5% of the admission price. In
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case of failure to collect the tax, the tax shall be imposed
upon the corporation holding the race meeting. The tax shall be
paid to the Department of Revenue within ten days after the
close of each race meeting. The amounts collected shall be paid
into the State Treasury to the credit of the State Racing Fund.
Before any corporation liable to pay the tax shall hold any race
meeting, or exercise any of the powers conferred by this act,
the corporation shall pay all taxes due and file a statement
with the Department of Revenue containing the name of the place
and stating the time when the races are to be held. Nothing in
this section shall apply to a race meeting conducted by any
state, county or other agricultural association.
(c) The Department of Revenue shall have the power to
examine the books and records of the corporation conducting any
horse race meeting and may hear testimony and take proofs and
material for its information, or from any other data which shall
be satisfactory to it. The Department of Revenue may order and
state an account for the tax due the State, together with the
expense of such examination. A penalty of 5% and interest at the
rate of 1% per month from the due date to the date of payment of
the tax shall be payable in case any tax imposed by this section
is not paid when due.
Section 209. Licenses for horse race meetings.
(a) Any corporation desiring to conduct horse race meetings
at which pari-mutuel wagering shall be permitted may apply to
the appropriate commission for a license. The license gives its
holder the privilege to conduct horse race meetings at which
pari-mutuel wagering is permitted. The license does not give its
holder a property right. If, in the judgment of the appropriate
commission, the public interest, convenience or necessity will
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be served and a proper case for the issuance of the license is
shown, the appropriate commission may issue the license. The
license shall remain in effect so long as the licensed
corporation complies with all conditions, rules and regulations
and provisions of this act. A commission may revoke or suspend
the license of any corporation, if the commission finds by a
preponderance of the evidence that the corporation, its
officers, employees or agents, has not complied with the
conditions, rules, regulations and provisions of this act and
that it would be in the public interest, convenience or
necessity to revoke or suspend the license. A license is not
transferable.
(b) Every license shall be issued upon the following
conditions:
(1) A horse race meeting at which pari-mutuel wagering
is conducted is subject to the supervision of and to the
reasonable rules and regulations prescribed by the
appropriate commission.
(2) Pari-mutuel wagering conducted is also subject to
the supervision of and to the reasonable regulations
prescribed by the Department of Revenue. Any license may also
be issued upon any other condition that the appropriate
commission determines to be necessary or desirable to insure
that the public interest, convenience or necessity is served.
(3) The corporation can prove by a preponderance of the
evidence that it has obtained the use of a facility to
conduct horse race meetings. The proof may be demonstrated by
documentation of an ownership interest in the facility or by
a written lease for use of the facility. For purposes of this
paragraph, an ownership interest shall mean that a licensed
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corporation directly or through a parent or subsidiary has at
least a 35% equity interest in the track facility at which it
conducts horse race meetings or is the primary tenant at such
facility. For purposes of this paragraph, a primary tenant
shall be that licensed corporation, if any, which is a tenant
conducting horse racing meetings at a track facility at which
no licensed corporation conducting horse race meetings has
directly or through a parent or subsidiary at least a 35%
equity interest in such facility, and if there is more than
one such tenant at any such facility during the year prior to
the year for which dates are requested, then among or between
such tenants the primary tenant, if any, shall be designated
by agreement among or between those licensed corporations
which propose to conduct horse race meetings at the said
track facility during the year for which dates are requested.
(4) The corporation posts, in favor of the appropriate
commission, a bond or irrevocable letter of credit in an
amount equal to the sum of the corporation's average weekly
payment, during active racing, into the State Racing Fund, as
determined by the appropriate commission on the basis of the
immediately preceding year, during the year for which dates
are requested.
(5) The licensed corporation prints in its racing
programs the procedure for filing a complaint with the
appropriate commission.
(c) Applications for licenses shall be in the form
prescribed by the appropriate commission and shall contain
information, material or evidence as the appropriate commission
may require. The term "racing week" shall include Sunday at the
discretion of the licensed corporation.
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(d) In considering an application for a license to a
corporation, the commissions may give consideration to the
number of licenses already granted. No license shall be granted
to any track located within ten miles of a State, county or
other political subdivision fair conducting horse racing unless
the association, corporation, society, political subdivision or
State agency conducting the fair shall affirmatively waive
objection to the issuance of the license for dates within the
period.
(e) The commissions may refuse to grant, may revoke, or may
suspend a license to a corporation, if it shall determine that:
(1) Any officer, director, member or stockholder of the
corporation applying for a license or of any corporation
which owns stock in or shares in the profits, or participates
in the management of the affairs of the applicant, or which
leases to the applicant the track where it shall operate:
(i) has been convicted of a crime involving moral
turpitude;
(ii) has engaged in bookmaking or other forms of
illegal gambling;
(iii) has been found guilty of any fraud or
misrepresentation in connection with racing or breeding;
(iv) has been guilty of any violation or attempt to
violate any law, rule or regulation of any racing
jurisdiction, for which suspension from racing might be
imposed in such jurisdiction; or
(v) has violated any rule, regulation or order of
the commissions.
(2) The experience, character or fitness of any officer,
director or stockholder of any of the corporations is such
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that the participation of the person in horse racing or
related activities would be inconsistent with the public
interest, convenience or necessity or with the best interests
of racing. If the commission determines that the interest of
any stockholder referred to in this paragraph or in paragraph
(1) is insufficient to affect adversely the conduct of pari-
mutuel horse racing by the corporation in accordance with the
provisions of this act, the commissions may disregard the
interest in determining whether or not to grant a license to
the corporation.
(3) The applicant is not the owner or the lessee of the
track at which it will conduct pari-mutuel horse racing under
the license applied for, or that any person, firm,
association or corporation other than the applicant shares,
or will share, in the profits of the applicant, other than by
dividends as a stockholder, or participates, or will
participate in the management of the affairs of the
applicant.
(4) The corporation does not have the use of a facility
to conduct horse race meetings. Such use must be proved by a
preponderance of the evidence. The proof may be demonstrated
by documentation of an ownership interest in the facility or
by a written lease for use of the facility.
(5) A licensed corporation does not have proof of a
written lease of a facility to conduct horse race meetings.
Under this paragraph, the appropriate commission may suspend
a license for a period of two years. After the expiration of
the suspension, the appropriate commission may then revoke
the license, if the licensed corporation has failed to
contract for a facility at which to conduct horse race
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meetings.
(6) A licensed corporation has commingled horsemen's
funds in violation of section 235(c) or has refused to place
on deposit a letter of credit under section 236.
(f) The commissions shall also have power to refuse to
grant, revoke or suspend a license:
(1) To any corporation, the charter or certificate of
incorporation of which shall fail to contain a provision
requiring any stockholder, upon written demand of the
corporation, to sell his stock to the corporation at a price
to be fixed by the appropriate commission, provided the
demand be made pursuant to written direction of the
appropriate commission and from the date of the making of the
demand prohibiting the transfer of the certificate of stock
except to the corporation.
(2) To any corporation which, having been a licensee,
has failed, in the opinion of the appropriate commission, to
properly maintain its track and plant in good condition or
has failed to make adequate provision for rehabilitation and
capital improvements to its track and plant.
(g) Pending final determination of any question under this
section, the commissions may issue a temporary license upon such
terms and conditions as they see fit to effectuate the
provisions of this act.
(h) The commissions shall have power to direct that every
certificate of stock of a licensed corporation shall bear a
legend, plainly and prominently imprinted upon the face of the
certificate, reading: "This certificate of stock is transferable
only subject to the provisions of the 'Race Horse Industry
Reform Act'." The provisions of this subsection shall not apply
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to stock heretofore issued by a licensed corporation under the
provisions of the act of December 11, 1967 (P.L.707, No.331), as
amended, and referred to as the Pennsylvania Thoroughbred Horse
Racing Law or of the act of December 22, 1959 (P.L.1978,
No.728), as amended, and referred to as the Pennsylvania Harness
Racing Law.
Section 210. Shareholders.
(a) Each licensed corporation shall, once a year, provide
the appropriate commission with a complete list of all its
shareholders, indicating the number of shares by each
shareholder.
(b) It shall be the duty of each licensed corporation within
ten days after any transfer of stock comprising an interest of
5% or more in such licensee, to notify the appropriate
commission of the transfer.
(c) Each certificate of stock issued by a licensed
corporation to a shareholder having a 5% or greater interest
shall have noted on the face thereof that the person whose name
is indicated as the owner of such shares of stock by the
certificate is the sole and absolute owner, and that he is not
holding such shares of stock or any portion of such shares of
stock represented by the certificate in trust for any person,
partnership, firm or corporation who or which is prohibited from
owning such shares of stock. If any of such shares of stock
represented by a certificate of stock are held subject to the
terms of either an inter vivos or testamentary trust for the
benefit of any person who could lawfully own such stock in his
own name, the fact shall be noted on the face of the certificate
and a copy of the instrument which created the trust shall be
attached. A duplicate copy of the instrument which created the
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trust shall be filed with the appropriate commission.
(d) No property rights shall exist in any shares of stock of
any licensed corporation which are held in trust contrary to the
provisions of this section and the same shall be forfeited to
the Commonwealth after reasonable notice and upon hearing and
proof thereof in any suit instituted by the Attorney General of
Pennsylvania. Upon it being established that the stock is
subject to forfeiture by legal adjudication, the appropriate
commission shall sell the forfeited stock at public sale, upon
proper notice, to the highest bidder. The proceeds from the sale
shall be deposited in the General Fund of the Commonwealth of
Pennsylvania.
(e) As used in this section, the term "licensed corporation"
shall include any licensed corporation as defined in section 102
and also any firm, association or corporation which owns or
leases to any licensed association or corporation a race track
at which pari-mutuel racing is conducted, or any firm,
association or corporation which participates in the management
of any such licensed corporation.
Section 211. Prohibition of interest by public officers, public
employees and party officers in pari-mutuel racing
activities.
(a) No public officer, public employee or party officer
shall:
(1) hold any license to conduct a pari-mutuel meet from
the commissions;
(2) own or hold, directly or indirectly, any proprietary
interest, stock or obligation of any firm, association or
corporation:
(i) which is licensed by the commissions to conduct
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pari-mutuel racing;
(ii) which is licensed to conduct its occupation,
trade or business at race tracks at which pari-mutuel
race meets are conducted;
(iii) which owns or leases to any licensed
association or corporation a race track at which pari-
mutuel racing is conducted; or
(iv) which participates in the management of any
licensed corporation conducting pari-mutuel racing; and
(3) hold any office or employment with any firm,
association or corporation specified in paragraph (2); or
(4) sell or be a member of a firm or own 10% or more of
the stock of any corporation which sells any goods or
services to any firm, association or corporation specified in
paragraph (2).
The provisions of paragraph (3) shall not apply to a public
employee other than a police officer or paid employee of a
police department, sheriff's office, district attorney's office
or other law enforcement agency so long as such employment of
employees of a political subdivision may be prohibited by
ordinance, resolution or local law.
(b) A knowing and willful violation of this section shall be
cause for removal from public office, public employment or party
office. In any such case, the public officer, public employee or
party officer, violating this section, shall be removed from
office by appropriate authority having the power of removal.
(c) The following words and phrases when used in this act
shall have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
"Party officer." The following members or officers of any
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political party:
(1) a member of a national committee;
(2) a chairman, vice-chairman, secretary, treasurer or
counsel of a State committee or member of the executive
committee of a State committee;
(3) a county chairman, vice-chairman, counsel, secretary
or treasurer of a county committee; or
(4) a city chairman, vice-chairman, counsel, secretary
or treasurer of a city committee.
"Public employee." Every person employed by the Commonwealth
or any political subdivision thereof.
"Public officer." Every person elected to any public office
of the Commonwealth or any political subdivision thereof.
(d) The commissions shall have the power to refuse to grant
or to revoke or suspend a license of any firm, association or
corporation which aids or knowingly permits or conspires to
permit any public officer, public employee or party officer to
acquire or retain any interest prohibited by this section.
(e) The provisions of this section shall allow any person
other than members, employees or appointees of the commissions
to own and to be licensed to race a horse at any licensed race
track.
Section 212. Officials at horse race meetings.
(a) At all thoroughbred horse race meetings licensed by the
State Horse Racing Commission, qualified judges and starters
shall be approved by the commission. These officials shall
enforce the rules and regulations of the State Horse Racing
Commission and shall render written reports of the activities
and conduct of such race meetings to the State Horse Racing
Commission. The compensation of these judges and starters shall
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be paid by the corporation conducting the race meeting.
(b) At all harness race meetings licensed by the State
Harness Racing Commission, qualified judges and starters shall
be approved by the commission. No person shall be approved as a
judge or starter unless he is licensed by the United States
Trotting Association as a duly qualified pari-mutuel race
meeting official. The officials shall enforce the rules and
regulations of the State Harness Racing Commission and shall
render regular written reports of the activities and conduct of
the race meetings to the State Harness Racing Commission. The
compensation of the presiding judge and two associate judges at
each race track shall be fixed and paid by the State Harness
Racing Commission. The commission shall adopt a selection
process to approve the appointment of these officials. The
licensed corporations shall participate in this selection
process for approval of these officials.
Section 213. Licenses for commissioners, employees and
participants at horse race meetings.
(a) Each commission shall license trainers, jockeys,
drivers, persons participating in thoroughbred and harness horse
race meetings, horse owners and all other persons and vendors
exercising their occupation or employed at thoroughbred and
harness horse race meetings. The license gives its holder a
privilege to engage in the specified activity, but the license
does not give its holder a property right. Licenses are not
transferable. Each commission shall fix the license fees to be
paid by persons or corporations so licensed; provided, however,
that such occupational license fees shall not exceed $100. All
fees shall be paid to the commissions and by them paid into the
State Treasury through the Department of Revenue and credited to
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the State Racing Fund. The application shall be in the form and
contain the information as each commission may require.
Applicants must have their fingerprints taken or have
fingerprint records on file with the respective commission, the
Federal Bureau of Investigation, the State Police or any other
organization recognized by the respective commission as part of
the background investigation. Each commission may exempt
applicants from the fingerprint requirement for positions not
related to the care or training of horses, racing, wagering,
security or the management operations of the racing corporation
or racetrack. All licenses shall be issued for three-year terms
and shall be automatically renewed, upon payment of the required
fee, unless subsection (f) applies. Each commission may
establish a temporary license and fee valid for four months
within a twelve-month period. No applicant, however, may receive
more than one temporary license within 12 months of the issuance
of his or her preceding temporary license. The commissions may
also stagger the termination dates and renewal dates of the
licenses, in order to process and issue the licenses in an
orderly manner that provides for approximately one-third of the
licenses to be renewed each year. The commissions shall fix the
manner by which licenses are processed and issued by rule or
regulation.
(b) All commissioners and all employees, agents and
representatives of the commissions shall be licensed under this
act. There shall be no fee for this license. The commissions
shall fix by rule or regulation the manner in which these
licenses under this subsection shall be processed and issued.
(c) If the commissions find that the experience, character
and general fitness of the applicant are such that the
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participation of the person in horse race meets is consistent
with the public interest, convenience and necessity, and with
the best interests of racing generally in conformity with the
purposes of this act, it may grant a license.
(d) The commissions may refuse to issue a license under this
section, if they shall find that the applicant:
(1) Has been convicted of a crime involving moral
turpitude.
(2) Has engaged in bookmaking or other form of illegal
gambling.
(3) Has been found guilty of any fraud or
misrepresentation in connection with racing or breeding.
(4) Has been found guilty of any violation or attempt to
violate any law, rule or regulation of racing in any
jurisdiction, for which suspension from racing might be
imposed in that jurisdiction.
(5) Has violated any rule, regulation or order of the
commissions.
(d.1) The commissions shall refuse to issue a license under
this section if they shall find that the applicant has been
convicted of an offense relating to fixing races. This
subsection shall not apply if the conviction is overturned on
appeal under the laws of the jurisdiction of the original
finding.
(e) Each commission shall have the right to inspect all
contracts between licensed corporations and vendors for goods
and services. Each commission shall require by rule or
regulation that vendors disclose to the appropriate commission
all principal officers and a description of their interests in
the vendors' business. Failure to properly disclose this
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information shall constitute grounds to deny, to revoke or to
suspend any vendor's license issued under the provisions of this
act.
(f) The commissions may suspend, refuse to renew or revoke a
license issued under this section, if it shall determine that:
(1) The applicant or licensee:
(i) has been convicted of a crime involving moral
turpitude;
(ii) has engaged in bookmaking or other form of
illegal gambling;
(iii) has been found guilty of any fraud in
connection with racing or breeding;
(iv) has been guilty of any violation or attempt to
violate any law, rule or regulation of any racing
jurisdiction for which suspension from racing might be
imposed in that jurisdiction;
(v) has violated any rule, regulation or order of
the commissions; or
(vi) has been convicted of a felony offense related
to the use, possession or sale of drugs or alcohol.
(2) That the experience, character or general fitness of
any applicant or licensee is such that the participation of
the person in horse racing or related activities would be
inconsistent with the public interest, convenience or
necessity or with the best interests of racing.
(f.1) The commissions shall suspend, refuse to renew or
revoke a license issued under this section if it shall determine
that the applicant or licensee has been convicted of an offense
related to fixing races unless the conviction has been
overturned on appeal under the laws of the jurisdiction of the
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original finding.
(g) Pending final determination of any question under this
section, the commissions may issue a temporary license upon such
terms and conditions as they may deem necessary or proper to
effectuate the provisions of this act.
(h) The commissions may suspend a license under subsection
(f) pending a hearing on the matter. The hearing must take place
within ten days of the suspension.
(i) The commissions shall not grant licenses to citizens of
states that do not grant licenses to citizens of this
Commonwealth on the basis of in-state preference.
Section 214. Power of commissions to impose fines and
penalties.
(a) In addition to their power to suspend or revoke licenses
granted by them, the commissions are authorized and empowered to
impose fines upon any corporation, association or person
participating in any way in any horse race meet at which pari-
mutuel wagering is conducted, other than as a patron and whether
licensed by the commissions or not, for a violation of any
provision of this act or the rules and regulations promulgated
by the commissions, not exceeding $5,000 for each violation,
which fines shall be paid into the State Treasury through the
Department of Revenue and credited to the General Fund.
Following exhaustion of any administrative remedies promulgated
by the commissions for such purpose, the action of the
commissions in imposing any monetary fine shall be subject to
appeal to the Commonwealth Court and as approved by that court
system, or if no court appeal is taken, then as imposed, may be
collected in an action of assumpsit.
(b) No officer or employee of a licensed corporation or
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their spouses, parents, fathers-in-law, mothers-in-law, sons,
daughters, sons-in-law or daughters-in-law shall have any direct
or indirect interest in a race horse that is participating in a
race at a meet at which such person or heretofore-mentioned
relative holds any interest in the licensed corporation
conducting the meet and/or the track facility. An officer or
employee of a licensed corporation or their spouses, parents,
fathers-in-law, mothers-in-law, sons, daughters, sons-in-law or
daughters-in-law may have an interest in a race horse and enter
it at meets that are conducted by licensed corporations or at
race tracks in which such a person or heretofore-mentioned
relative holds no direct or indirect interest. Each commission
shall impose a fine or penalty upon any person for violation of
this subsection as provided for under subsection (a). For
purposes of this subsection an interest shall not include:
(1) any breeder's fund award as a result of a horse
being a registered Pennsylvania-bred thoroughbred horse under
the provisions of section 223; and
(2) any interest in a licensed corporation or track
facility that was held by a person, partnership, association
or corporation on or before January 1, 1988.
Section 215. Security personnel; powers and duties; penalty.
(a) The commissions and any licensed corporations are
authorized and empowered to employ persons as security
personnel. These persons shall possess the powers and duties of
a peace officer with respect to the enforcement of the criminal
laws of the Commonwealth within the race meeting grounds or
enclosure. The designated persons are also authorized to
interrogate and eject from the race meeting grounds or enclosure
any persons suspected of violating any rule or regulation
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promulgated by the commissions. The commissions may refuse
admission to and eject from enclosure of the race track operated
by any licensed corporation, any person whose presence there is,
in the judgment of the commission, inconsistent with the orderly
or proper conduct of a race meeting or whose presence or conduct
is deemed detrimental to the best interest of horse racing. The
action of the commissions in refusing any person admission, or
ejecting him from, a race meeting ground or enclosure shall not
be because of the race, creed, color, sex, national origin or
religion of that person and shall be reviewable by the
Commonwealth Court.
(b) Except as provided for in subsections (c) and (d), any
licensed corporation may refuse admission to and eject from the
enclosure of the race track operated by any association any
person except that no person shall be refused admission or be
ejected because of the race, color, creed, sex, national origin
or religion of that person.
(c) A licensed corporation may refuse admission to and eject
from the enclosure of the race track operated by the
corporation, any person licensed by the commissions under
section 213, employed at his occupation at the race track, whose
presence there is deemed detrimental to the best interests of
horse racing, citing the reasons for that determination. The
action of the corporation in refusing the person admission to or
ejecting him from a race meeting ground or enclosure shall have
immediate effect. The person refused admission or ejected shall
receive a hearing before the appropriate commission, if
requested, pursuant to rules and regulations adopted for that
purpose by the appropriate commission and a decision rendered
following that hearing.
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(d) A licensed corporation may not refuse admission to or
eject a law enforcement official while that official is actually
engaged in the performance of official duties.
(e) A person found within a race track enclosure after
having been refused admission thereto or ejected therefrom
shall, upon conviction thereof in a summary proceeding, be
sentenced to pay a fine not exceeding $300 or undergo
imprisonment for a term not exceeding 90 days, or both.
Section 216. Interstate simulcastings of horse races.
Each commission may, upon request by any licensed
corporation, grant permission for electronically televised
simulcasts of horse races to be operated by the licensed
corporation at the race track enclosure where a horse race
meeting is being conducted during, between, before or after
posted races for that racing day. The posted races for that
racing day shall include a minimum of eight live races, except,
at thoroughbred tracks on the one day designated as Breeders'
Cup Event Day, there shall be a minimum of five live races. The
simulcasts shall be limited to horse races conducted at
facilities outside this Commonwealth and televised to race track
enclosures within this Commonwealth. The simulcasts shall also
be limited to thoroughbred races designated as Grade I stakes,
or the international equivalent thereto, with purses of at least
$100,000; standard bred races with purses of at least $100,000;
and other stakes races which have, in the opinion of the
appropriate commission, significant value to the Pennsylvania
racing industry. Cross simulcasting of the aforementioned races
shall be permitted as long as the particular race is available
to all race tracks in the Commonwealth which are operating live
racing that day. All simulcasts of horse races from outside this
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Commonwealth shall also comply with the provisions of the
Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001
et seq. All forms of pari-mutuel wagering as described under
section 221 shall be allowed on horse races to be televised by
simulcasting. Each commission may promulgate rules or
regulations to regulate the wagering and the operation of these
horse races. All moneys wagered by patrons on these horse races
shall be computed in the amount of money wagered each racing day
for purposes of taxation under section 222.
Section 216.1. Televised international and interstate
simulcastings of horse races.
(a) Each commission may, upon request by a licensed
corporation, grant permission to maintain common pari-mutuel
pools on international and interstate races transmitted to and
from the racetrack enclosures within this Commonwealth, such
licensed corporation to be designated as the "host licensee."
The permission to act as host licensee for international and
interstate simulcast races shall be limited to licensed
corporations:
(1) which have a live racing agreement with a horseman's
organization representing a majority of owners and trainers
at the facility where the licensed corporation conducts
racing dates;
(2) which have scheduled 95% of the total number of
horse or harness racing days scheduled in 1986 by it or its
predecessor at the facility where the licensed corporation
conducts racing dates; and
(3) which, subject to actions or activities beyond the
control of the licensee, conduct not less than eight live
races per race date during each meet at the facility where
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the licensed corporation conducts racing dates, except for
thoroughbred tracks on the day designated as Breeder's Cup
Event Day, when the facility shall hold a minimum of five
live races.
A horseman's organization representing a majority of owners and
trainers at a racetrack may consent to waiving or modifying the
provisions pertaining to the required number of racing days and
races per day scheduled by a licensed corporation at that
racetrack.
(b) Cross simulcasting of the races described in subsection
(a) shall be permitted if all amounts wagered on the races in
this Commonwealth are included in common pari-mutuel pools. A
host licensee seeking permission to cross simulcast must obtain
approval from both the State Harness Racing Commission and the
State Horse Racing Commission. All simulcasts of horse races
shall also comply with the provisions of the Interstate Horse
Racing Act of 1978 (92 Stat. 1811, 15 U.S.C. § 3001 et seq.).
All forms of pari-mutuel wagering as described under section 221
shall be allowed on horse races to be televised by simulcasting.
Each commission may permit pari-mutuel pools in this
Commonwealth to be combined with pari-mutuel pools created under
the laws of another jurisdiction and may permit pari-mutuel
pools created under the laws of another jurisdiction to be
combined with pari-mutuel pools in this Commonwealth. Each
commission may promulgate rules or regulations to regulate
wagering on televised simulcasts.
(c) All moneys wagered by patrons in this Commonwealth on
these horse races shall be computed in the amount of money
wagered each racing day for purposes of taxation under section
222 and all thoroughbred races shall be considered a part of a
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thoroughbred horse race meeting and all harness races shall be
considered a part of a harness horse race meeting for purposes
of section 222(b)(5).
Section 217. Refunds.
(a) Money received by the commissions may, within one year
from receipts thereof, be refunded, to the party for whose
account the same were received, on proof satisfactory to the
commissions that:
(1) the moneys were in excess of the amount required by
law;
(2) the license for which application was made has been
refused by the commission;
(3) the moneys were received as a fine and the
commission has, after review, reduced the amount of the fine;
or
(4) upon appeal, the court reduced or remitted the fine
imposed and paid.
(b) Refunds shall, upon approval by the commission and after
approval by the Board of Finance and Revenue, be paid from any
moneys in the State Racing Fund.
Section 218. Place and manner of conducting pari-mutuel
wagering.
(a) Every licensed corporation shall provide during a horse
race meeting a place or places within the race track enclosure
at which the licensed corporation shall conduct the pari-mutuel
system of wagering by its patrons on the results of horse races
held at such meetings or televised to the race track enclosure
by simulcasting. The licensed corporation shall erect a sign or
board upon which shall be displayed the approximate straight
odds on each horse in any race; the value of a winning mutuel
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ticket, straight, place or show on the first three horses in the
race; the elapsed time of the race; the value of a winning daily
double ticket, if a daily double be conducted, and any other
information that the commissions may deem necessary for the
guidance of the general public. The commissions may prescribe,
by rule, the type and kind of equipment to be used for the
display of the foregoing information.
(b) Each commission may upon request by any licensed
corporation grant permission to the licensed corporation to
conduct a telephone account wagering system: Provided, however,
That all telephone messages to place wagers must be to a place
within the race track enclosure: And further provided, That all
moneys used to place telephone wagers be on deposit in an amount
sufficient to cover the wager at the race track where the
account is opened. Each commission may promulgate rules or
regulations to regulate telephone account wagering. All moneys
wagered as a result of telephone account wagering shall be
included in the amount wagered each racing day for purposes of
taxation under section 222 and shall be included in the same
pari-mutuel pools for each posted race. All telephone account
wagering systems shall be solely operated by the licensed
corporations.
(c) A licensed corporation shall only accept and tabulate a
wager by a direct telephone call from the holder of a telephone
wagering account. No person shall directly or indirectly act as
an intermediary, transmitter or agent in the placing of wagers
for a holder of a telephone wagering account. No person shall in
any manner place any wager by telephone to a facility in the
race track enclosure on behalf of a holder of a telephone
wagering account. Only the holder of a telephone wagering
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account shall place a telephone wager. Any person violating this
subsection shall be guilty of a misdemeanor of the first degree.
(d) A licensed corporation shall not accept a telephone
wager from, nor establish a telephone betting account for, any
person located in or residing in an area defined herein as the
primary market area of a race track, other than the race track
at which the licensed corporation is conducting a racing meet.
Nothing herein shall prohibit the licensed corporation from
accepting a telephone wager from, or establishing a telephone
betting account for, any person located in or residing in the
primary market area of the track at which the licensed
corporation is conducting a meet and, if two tracks share
primary market area as defined herein, both tracks shall have
equal rights to the market in the shared area.
(e) The primary market area of a race track, for purposes of
this act, is defined as that land area included in a circle
drawn with the race track as the center and a radius of 35 air
miles.
(f) The secondary market area of a racetrack, for purposes
of this act, is defined as that land area included in a circle
drawn with the racetrack as the center and a radius of 50 air
miles, but not including the primary market area of the
racetrack.
(g) Notwithstanding any other provisions of this act to the
contrary, upon approval by the appropriate commission, a
licensed corporation may establish one or more nonprimary
locations at which it shall conduct pari-mutuel wagering on all
horse races conducted by such licensed corporation and may
conduct pari-mutuel wagering on horse races conducted by another
licensed corporation, which horse races may be televised to the
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locations, or on horse races simulcast to the locations pursuant
to section 216, provided that:
(1) No licensed corporation may establish nonprimary
locations within the primary market area, as set forth in
subsection (e), of any racetrack other than a racetrack at
which the licensed corporation conducts race meetings.
Establishment of a nonprimary location by a licensed
corporation within the primary market area of a racetrack at
which the licensed corporation conducts race meetings shall
require approval of the commission regulating the activities
of such licensed corporation.
(2) Any licensed corporation may establish a nonprimary
location within the secondary market area of a racetrack as
set forth in subsection (f), provided that the nonprimary
location is approved by both the State Harness Racing
Commission and the State Horse Racing Commission.
(3) Any licensed corporation may establish a nonprimary
location in areas outside the primary and secondary market
areas of any racetrack, provided that the location is
approved by the commission which regulates the activities of
the licensed corporation establishing the location.
(4) Where a site is approved by the commission as a
nonprimary location established by more than one licensed
corporation, by agreement between the licensed corporations
and with the approval of the appropriate commission, one
licensed corporation may operate the pari-mutuel equipment
for one or more of the licensed corporations at that
location, but the location may still be considered a part of
the racetrack enclosure of each of the licensed corporations
approved to conduct pari-mutuel wagering at that location.
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(5) (i) Any licensed corporation, planning to establish
a nonprimary location, shall submit to the appropriate
commission a nonprimary location statement in a form
prescribed by the appropriate commission which specifies,
but is not limited to, the following:
(A) The number of permanent and part-time jobs
to be created at the proposed facility.
(B) The population of the town or municipality,
and surrounding area, where the proposed facility is
to be located.
(C) The proximity of the proposed facility to
any other nonprimary location or licensed racetrack.
(D) The type of seating to be provided,
including areas in the proposed facility where
patrons can handicap races.
(E) The total seating capacity of the proposed
facility.
(F) The size and number of toilet facilities.
(G) The availability of food and beverages,
including the number of tables, chairs, kitchen
facilities and concession stands.
(H) The number of available parking spaces.
(I) A description of the general demeanor of the
facility, including lighting, decor and plans for the
exterior of the facility.
(J) The number of betting windows and stand-
alone terminals to be provided.
(K) A description of the heating and air
conditioning units, the smoke removal equipment and
other climate control devices.
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(L) The total square feet of the proposed
facility.
(ii) The General Assembly recognizes the economic
importance of the horse racing industry in this
Commonwealth; and further recognizes that the
Pennsylvania horse racing industry is in a state of
decline. Therefore, it is the intent of the General
Assembly through this amendatory act to revitalize and
secure the economic future of the horse racing industry
and to encourage statewide economic development by
assisting in the development of nonprimary locations. It
is the further intent of the General Assembly through
this amendatory act that in no case shall the appropriate
commission approve a nonprimary location statement when
the sole purpose of that statement is to provide wagering
opportunities pursuant to this act; rather, the
appropriate commission shall only approve a nonprimary
location statement that plans for a public facility
offering not only wagering opportunities, but other
amenities, such as high class restaurants and quality
handicapping facilities, so that all or part of the
nonprimary facility will resemble the clubhouse
facilities of a racetrack. It is the further intent of
the General Assembly through this amendatory act to offer
the potential for the creation of jobs, not only in the
racing and wagering industry, but more particularly in
other service jobs, such as parking attendants, waiters
and waitresses, security guards, custodial workers and
food service personnel.
(iii) In determining whether the nonprimary location
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statement meets the legislative intent of this amendatory
act, the appropriate commission shall consider factors
which include, but are not limited to, the following:
(A) The purposes and provisions of this
amendatory act.
(B) The public interest.
(C) The integrity of live racing.
(D) The impact on the local community.
(E) The potential for job creation.
(F) The quality of the physical facilities and
all services to be provided therein.
(iv) In considering whether the appropriate
commission will grant, suspend or revoke approval of
nonprimary locations, the provisions of section 209(f)(2)
shall apply. In connection therewith, the commission
shall annually conduct inspections of the primary
facility.
(v) The rights, duties and obligations of the
appropriate commission, as set forth in this amendatory
act, shall apply to nonprimary locations and any
employees or vendors of the licensed corporation
establishing the nonprimary location.
(6) (i) In addition to the requirements of paragraph
(10), any licensed corporation which is authorized to
conduct racing at any primary racetrack location at which
there has not been, in the previous calendar year, a
minimum of 142 days of live racing shall not be eligible
to establish nonprimary locations outside its primary
market area and shall only be eligible to establish
nonprimary locations within its primary market area
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according to the following schedule.
Year 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
1988 50 365
1989 69 365 Under 69 307
1990 88 365 Under 88 259
1991 107 365 Under 107 191
1992 126 365 Under 126 133
1993 142 365 Under 142 75
(ii) Notwithstanding the chart contained in
subparagraph (i), if any such licensed corporation
schedules 69 or more racing days in calendar year 1989,
it may, upon approval of the appropriate commission,
establish nonprimary locations within its primary market
area for that calendar year.
(7) (i) The licensed corporation authorized to hold
race meetings at a primary racetrack location at which
more than one license is so authorized may be granted up
to two nonprimary locations by the appropriate
commission, up to a maximum of four per primary racetrack
location. The licensed corporation authorized to hold
race meetings at a primary racetrack location at which
there is only one such licensed corporation so authorized
may be granted up to three nonprimary locations.
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(ii) In addition to the nonprimary locations
authorized by subparagraph (i), during each of the
calendar years 1989 and 1990, the appropriate commission
may approve no more than one additional nonprimary
location per primary racetrack location, for one licensed
corporation authorized to conduct racing at the primary
racetrack location.
(iii) The General Assembly may, at any time, stop
the further approval of any nonprimary locations. The
State Harness Racing Commission and the State Horse
Racing Commission shall not have the authority to approve
any greater number of nonprimary locations after December
31, 1990, unless further authorized by the General
Assembly.
(iv) It shall be the duty of both the State Harness
Racing Commission and the State Horse Racing Commission
to annually report to the General Assembly on the effect
of nonprimary locations on such factors as the local
economy, the public interest and the integrity of live
racing, and make suggestions and recommendations.
(8) (i) Moneys wagered at all primary and nonprimary
locations pursuant to this act shall be included in
common pari-mutuel pools. All money wagered by patrons on
these races shall be computed in the amount of money
wagered each racing day for purposes of taxation under
section 222. The licensed corporation conducting the race
meeting and maintaining the pari-mutuel pools shall
maintain accurate records of the amount wagered in each
pool from every primary and nonprimary location.
(ii) The retained moneys as provided for in section
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222(e) shall be calculated for each location where pari-
mutuel wagering is being conducted. If wagering has taken
place at a nonprimary location where the wagering is
conducted by a licensed corporation other than the
licensed corporation conducting the race meeting, the
licensed corporation conducting the race meeting shall
retain any moneys to which it is entitled by agreement
between such licensed corporations and shall pay over the
balance of the retained moneys to the licensed
corporation conducting the wagering at the nonprimary
location.
(9) (i) A licensed corporation conducting a race
meeting on which pari-mutuel wagering is conducted at one
or more nonprimary locations shall distribute to the
horseman's organization representing a majority of owners
and trainers at its racetrack, or in accordance with the
practice of the parties, to be used for payment of purses
at that racetrack, an amount equal to not less than 6% of
the daily gross wagering handle on such races at a
nonprimary location: Provided, however, That when the
gross wagering handle on such races at any such
nonprimary location on a given day is less than $30,000,
the above-referenced percentage shall be not less than
3%, and when the gross wagering handle on such races at
any such nonprimary location on a given day is between
$30,000 and $75,000 inclusive, the above-referenced
percentage shall be not less than 4.75%: And provided
further, That whenever a nonprimary location is within
the primary market area of a licensed corporation other
than the licensed corporation conducting such races, the
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applicable percentage shall be distributed one-half to
the horseman's organization representing a majority of
owners and trainers at the racetrack, or in accordance
with the practice of the parties, where the race meeting
is being conducted to be used for the payment of purses
at that racetrack and one-half to such horseman's
organization, or in accordance with the practice of the
parties, at the racetrack within the primary market area
to be used for the payment of purses at that racetrack.
Nothing in this subparagraph shall prevent a licensed
corporation from agreeing to distribute amounts greater
than the percentages set forth in this subparagraph.
However, if no alternative agreement has been reached,
the total percentage paid for purses under this
subparagraph shall be in accordance with the minimum
percentages set forth in this subparagraph.
(ii) Notwithstanding subparagraph (i), or any other
provision in this act to the contrary, a nonprimary
location may be established within the primary market
area of a racetrack by agreement between the licensed
corporation and the horseman's organization representing
a majority of the owners and trainers at that racetrack
specifying the total percentage of handle wagered at such
nonprimary location to be distributed to that horseman's
organization, or in accordance with the practice of the
parties, to be used for the payment of purses at that
racetrack. If no such agreement is reached covering such
locations, the total percentage to be paid for purses
pursuant to this subparagraph shall be the same as that
applied to on-track wagering at the racetrack located
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within the primary market area.
(10) The provisions of section 234 relating to the
required number of racing days apply to this subsection.
However, a horseman's organization representing a majority of
owners and trainers at a racetrack may consent to waiving or
modifying the provisions as pertaining to the required number
of racing days scheduled by a licensed corporation at that
racetrack.
Section 218-A. Wagering at nonprimary locations.
(a) Notwithstanding any other provisions of this act to the
contrary, licensed corporations shall not be authorized to
provide live telecasts of races to any locations open to the
public which are not primary to or contiguous with the licensed
corporation's racetrack and at which telephone account wagering
is also conducted and shall not be permitted to establish or
utilize master accounts or transfer accounts for telephone
account wagering or to accept credit or debit card telephone
account wagers or any other form of electronic signal
transmissions unless:
(1) after completion of the 1986 racing season, such
activities are conducted pursuant to regulations adopted by
the appropriate racing commission and approved pursuant to
the act of June 25, 1982 (P.L.633, No.181), known as the
"Regulatory Review Act"; or
(2) during the 1986 racing season, any such activities
are limited to areas, accounts and credit arrangements for
which applications are submitted to the appropriate
commission prior to June 1, 1986, and which are subsequently
approved by the respective commission after appropriate
investigation and review.
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(b) Regulations authorizing activities subject to the
moratorium provided by subsection (a) shall not be published for
Notice Of Proposed Rulemaking until completion of the evaluation
as required by subsection (c). Nothing in this section shall be
construed to expand or enlarge any regulatory authority
otherwise conferred upon the respective commissions by this act.
(c) The commissions shall jointly conduct an evaluation of
the use of telephone account wagering, including the use of
master accounts, transfer accounts, credit or debit cards, any
other form of electronic signal transmission and live
telecasting to or from areas open to the public not primary to
or contiguous with a racetrack. The evaluation shall consider
whether such activities are in the public interest and are
beneficial to racing and shall recommend, if such activities are
deemed desirable by the commissions, appropriate rules and
regulations for the conduct of such activities: Provided, That a
licensed corporation shall not be permitted to conduct pari-
mutuel wagering at any location which is within the primary
market area of another licensed corporation, as defined in
section 102 and section 218(e). The evaluation shall also
recommend whether any enlargement or modification to the laws
regulating such activities is necessary or desirable. In
performing the evaluation, the commissions shall study in detail
experimental activities authorized by the commissions, including
an analysis of the impact of conducting such activities at each
experimental site approved by the commissions. The evaluation is
to be completed by October 31, 1986, with copies of the
commissions' report being forwarded, within two weeks of that
date, to the Governor, the President pro tempore of the Senate,
the Speaker of the House, the Chairman of the Senate State
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Government Committee and the Chairman of the State Government
Committee of the House of Representatives. The evaluation shall
include, but not be limited to, an investigation and study of
the following matters:
(1) Which laws permit or prohibit the use of telephone
account wagering in coordination with live telecasting to
public locations and the utilization of transfer accounts,
master accounts, credit or debit cards or other forms of
electronic signal transmissions for pari-mutuel wagering at
such locations.
(2) In situations where such activities occur at
premises licensed by the Liquor Control Board to serve
alcoholic beverages, whether such activities violate any
portion of the act of April 12, 1951 (P.L.90, No.21), known
as the "Liquor Code."
(3) The financial viability of live telecasting to
public locations, together with the use of telephone account
wagering, transfer accounts, electronic signal transmissions,
or credit or debit card wagering, including the benefits or
disadvantages for the commissions, the licensed racing
corporation, horsemen and the general public.
(4) The local and Statewide community, fiscal and social
impact of such wagering activities at public locations.
(5) An analysis of the commissions' ability to properly
regulate and control such wagering at public locations in
order to protect the public and the integrity of the racing
industry.
(6) The ability of the commissions to investigate the
background of individuals owning or having an interest in
premises upon which such wagering takes place.
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(7) Patron betting behavior and satisfaction or abuse of
telephone account wagering, transfer accounts, credit or
debit cards or other forms of electronic signal transmissions
for the purpose of pari-mutuel wagering.
(8) What types of promotional activities have taken
place by the racing corporation or particular wagering sites
to encourage such wagering and what types of promotional
activities are proper and appropriate.
(9) What types of reporting procedures and records have
been and should be required from the licensed racing
corporation and individual wagering sites so as to assure all
revenues are accounted for and winners names are filed with
the proper taxing authorities.
(10) What minimum requirements with regard to physical
structures, facilities, equipment, security and public health
and safety are necessary and appropriate for locations at
which such wagering occurs.
(d) As used in this section "public locations" are deemed to
be areas open to the public and shall include all types of
commercial establishments, whether open to the public at large
or any segment of the public.
Section 219. Books and records of pari-mutuel wagering.
Every corporation that conducts a horse race meeting at which
pari-mutuel wagering is authorized, shall keep books and records
so as to clearly show by separate record the total amount of
money contributed to every pari-mutuel pool. The Department of
Revenue or its authorized representative shall have access to
all books and records for the purpose of examining the same and
ascertaining whether the proper amount due to the State is being
paid by the licensed corporation.
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Section 220. Filing of certain agreements with the commissions.
Every corporation licensed to conduct horse race meetings at
which pari-mutuel wagering is permitted shall promptly after
entering any lease agreement concerning any concession, labor
management relation, hiring of designated classes of officers,
employees or contractors specified by the commissions or any
such other contract or agreement as the commissions may
prescribe, file with the appropriate commission a true and
correct copy, or an accurate summary, if oral.
Section 221. Retention percentages for pari-mutuel pools.
(a) Every licensed corporation shall distribute the moneys
in any pari-mutuel pool to the holders of winning tickets under
the following requirements:
(1) all tickets shall be presented for payment before
the first day of April of the year following the year of
their purchase; and
(2) seventeen percent of the moneys plus the breakage
from regular wagering pools shall be retained by the licensed
corporations for further distribution under section 222; or
(3) nineteen percent of the moneys plus the breakage
from regular wagering pools from licensed corporations whose
total deposits in all pari-mutuel pools averaged less than
$300,000 per racing day for their previous meeting at the
same facility; or
(4) twenty percent of the moneys plus the breakage from
the exacta, daily double, quinella and other wagering pools
involving two horses each racing day shall be retained by the
licensed corporations for further distribution under section
222; or
(5) at least 26% but no more than 35% of the moneys plus
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the breakage from the trifecta or other wagering pools
involving more than two horses in one or more races each
racing day shall be retained by the licensed corporations for
further distribution under section 222; and
(6) except as provided for in subsection (d.1) of
section 222, every corporation may retain less than 17%, 19%
or 20% of the moneys in the wagering pools under paragraphs
(2), (3) and (4) or less than 26% of the moneys in the
wagering pools under paragraph (5) upon approval from the
appropriate commission; and
(7) every corporation may retain more than 25% but no
more than 35% of the moneys in the wagering pools under
paragraph (5) upon approval from the appropriate commission;
and
(8) all moneys remaining in the wagering pools described
under paragraphs (2), (3), (4), (5), (6) and (7) shall be
distributed to the holders of winning tickets.
(b) Breakage shall mean the odd cents of redistributions to
be made on all contributions to pari-mutuel pools exceeding a
sum equal to the next lowest multiple of ten.
(c) The commissions shall establish by rule or regulation
provisions for minus-pools relating to the retention
requirements under this section.
Section 222. Distribution of moneys retained from pari-mutuel
pools; taxation.
(a) There is hereby created the State Racing Fund. All
licensed corporations that conduct harness race meetings shall
pay a tax through the Department of Revenue for credit to the
State Racing Fund. All licensed corporations that conduct
thoroughbred horse race meetings shall pay a tax through the
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Department of Revenue for credit to the State Racing Fund. The
tax imposed on all licensed corporations shall be a percentage
tax on the amount wagered each racing day and be paid from the
moneys retained under section 221.
(a.1) At the close of each day of racing, all corporations
licensed to conduct harness horse race meetings or thoroughbred
horse race meetings which annually conduct at least 100 days of
racing, or when two licensed corporations conduct their race
meetings at the same facility and between them annually conduct
at least 175 days of racing, will pay out of the moneys retained
on that day under section 221, through the Department of Revenue
for credit to the State Horse Racing Fund the following taxes
for the time periods stated:
(1) From January 1, 1984 through June 30, 1984 - 3.8%.
(2) From July 1, 1984 through June 30, 1986 - 2.0%.
(3) After June 30, 1986 - 1.5%, except as provided in
subsection (a.4).
(a.2) Corporations not annually conducting at least 100 days
of racing, or 175 days of racing in conjunction with another
licensee at the same facility as described above, will pay 2.5%
from July 1, 1984 to June 30, 1986, and 2.0% thereafter. This
subsection shall not apply if races are not conducted because of
an act of God or because of a strike resulting from a labor
dispute.
(a.3) For purposes of this section, a racing day shall be
considered conducted after the appropriate commission has
certified the allocation of racing days to the Secretary of the
Department of Revenue under the provisions of section 207(b)
even if the racing day is subsequently cancelled by the licensed
corporation for reasons beyond its control.
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(a.4) Any corporation which does not hold a license under
section 209 on the effective date of this act and which is
granted a license under this act shall be subject to payment out
of moneys retained under section 221, through the Department of
Revenue for credit to the State Horse Racing Fund, of the
following tax for a period of four years from the issuance date
of the license - 1.0%, at which time said licensee shall be
subject to the lawful rate then in effect under subsection (a.1)
(3).
(a.5) In order to qualify for the 1.0% tax rate authorized
under subsection (a.4), the newly licensed corporation may not
include any officer, director or the immediate relative (spouse,
children or parents) of any officer or director of any licensed
racing corporation which conducted, at any time within the
immediately preceding five years, any horse or harness race
meetings at the racetrack enclosure for which the license is
sought. Also, the newly licensed corporation may not include any
shareholder (or their immediate relative) holding a 5% or
greater interest who also held a 5% or greater interest in any
corporation licensed at any time within the immediately
preceding five years to conduct horse or harness race meetings
at the racetrack enclosure for which the license is sought.
(b) The commissions shall distribute moneys from the State
Racing Fund, together with the interest earned thereon, in the
following manner:
(1) The salaries of employees of the commission employed
by or for it under the provisions of this act and the act of
April 9, 1929 (P.L.177, No.175), known as "The Administrative
Code of 1929," net of any income earned or received by the
commission.
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(2) The payment of the compensation of employees of the
Department of Revenue when used in collecting taxes and
penalties imposed by this act.
(3) The expenses of the Secretary and the Department of
Agriculture incurred in administering their duties under this
act.
(4) To pay all other expenses incurred by the commission
in administering this act, net of any income earned or
received by the commission.
(5) From remaining moneys in the State Racing Fund:
(i) An amount equivalent to one percent of the
amount wagered each racing day at thoroughbred horse race
meetings shall be paid by the Horse Racing Commission
from the State Racing Fund through the Department of
Revenue for credit to the Pennsylvania Breeding Fund.
(ii) An amount equivalent to one and one-half
percent of the amount wagered each racing day at harness
horse race meetings shall be paid by the Harness Racing
Commission from the State Racing Fund through the
Department of Revenue for credit to the Pennsylvania Sire
Stakes Fund, beginning on July 1, 1983.
(6) All remaining moneys in the State Racing Fund shall
be paid into the General Fund.
(c) All breakage retained under section 221 by licensed
corporations that conduct thoroughbred horse race meetings shall
be distributed in the following manner:
(1) Fifty percent of the breakage shall be retained by
the licensed corporations.
(2) Twenty-five percent of the breakage shall be
retained by the licensed corporations to be used solely for
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purses to the horsemen.
(3) Twenty-five percent of the breakage shall be paid to
the Department of Revenue for credit to the State Horse
Racing Fund.
(d) All breakage retained under section 221 by licensed
corporations that conduct harness horse race meetings shall be
distributed in the following manner:
(1) Fifty percent of the breakage shall be retained by
the licensed corporations.
(2) The remaining 50% of the breakage shall be retained
by the licensed corporations of which one-half of this
breakage shall be used solely by the licensed corporations
for claiming and nonclaiming races where entry is restricted
to Pennsylvania-sired horses in the following manner:
(i) On January 1, 1982, and thereafter at least five
of the horses programmed to start shall be Pennsylvania-
sired horses. If at least five of the horses programmed
to start are not Pennsylvania-sired horses, then the
licensed corporation conducting the meet shall cancel the
race.
(ii) On January 1, 1983, and thereafter at least
seven of the horses programmed to start shall be
Pennsylvania-sired horses. If at least seven of the
horses programmed to start are not Pennsylvania-sired
horses, then the licensed corporation conducting the meet
shall cancel the race.
(iii) On January 1, 1984, and thereafter, only
Pennsylvania-sired horses shall be allowed to start in
these races. If all the positions are not filled by
Pennsylvania-sired horses in these races, then the
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licensed corporation conducting the meet shall cancel the
race.
All breakage moneys due licensed corporations for the purses for
claiming and nonclaiming races under this paragraph but not
expended as a result of a race cancellation shall be carried
forward to the next succeeding meet by the licensed corporations
to be used for claiming and nonclaiming races which restrict
entry to Pennsylvania-sired horses under the provisions of this
paragraph.
(d.1) An amount equivalent to one percent of the amount
wagered at each racing day at thoroughbred and harness horse
race meetings as set forth in section 221(a)(4) and (5) shall be
paid through the Department of Revenue for credit to the State
Racing Fund.
(e) All remaining moneys retained under section 221 and not
heretofore distributed shall be kept by the licensed
corporations for their use.
Section 223. Pennsylvania Breeding Fund.
(a) There is hereby created a restricted account in the
State Racing Fund to be known as the Pennsylvania Breeding Fund
which shall consist of the money appropriated under the
provisions of section 222 and which shall be administered by the
State Horse Racing Commission.
(b) After the deduction of expenses related to the
administration and development of the Pennsylvania Breeding Fund
program incurred by the Pennsylvania Horse Breeders'
Association, the State Horse Racing Commission shall, by rule or
regulation, provide for awards as follows:
(1) An award of 30% of the purse earned by every
registered Pennsylvania-bred thoroughbred horse sired by a
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registered Pennsylvania sire at the time of conception of the
registered Pennsylvania-bred thoroughbred horse, or an award
of 20% of the purse earned by every registered Pennsylvania-
bred thoroughbred horse sired by a nonregistered sire, which
finishes first, second or third in any race conducted by a
licensed corporation under this act shall be paid to the
breeder of said registered Pennsylvania-bred thoroughbred
horse. A single award under this paragraph may not exceed 1%
of the total annual fund money.
(2) An award of 10% of the purse earned by any
Pennsylvania-bred thoroughbred horse which finishes first,
second or third in any race conducted by a licensed
corporation under this act shall be paid to the owner of the
registered Pennsylvania sire which regularly stood in
Pennsylvania at the time of conception of said Pennsylvania-
bred thoroughbred horse. A single award under this paragraph
may not exceed .5% of the total annual fund money.
(3) An award of 10% of the purse earned by any
registered Pennsylvania-bred thoroughbred horse which
finishes first in any race conducted by a licensed
corporation under this act not restricting entry to
registered Pennsylvania-bred thoroughbred horses shall be
paid to the licensed owner of said registered Pennsylvania-
bred thoroughbred horse at the time of winning. A single
award under this paragraph may not exceed .5% of the total
annual fund money.
(c) Up to one-fifth of the total of the estimated fund
moneys remaining each year after the deduction of expenses
related to the administration and development of the
Pennsylvania Breeding Fund program and the payment of breeder,
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stallion and owner awards, shall be divided among the licensed
corporations that conduct thoroughbred horse race meetings in
direct proportion to the rate by which each licensed corporation
generated the fund moneys during the previous year to be used
solely for purses for Pennsylvania Breeding Fund stakes races
which restrict entry to registered Pennsylvania-bred
thoroughbred horses.
(d) The fund moneys remaining following disbursements as
directed in subsection (b)(1), (2) and (3) and subsection (c)
shall be divided among the licensed corporations that conduct
thoroughbred horse race meetings in direct proportion to the
rate by which each licensed corporation generated the fund
moneys during the previous year to be used for purses as
follows:
(1) Claiming and nonclaiming Pennsylvania Breeding Fund
races which restrict entry to registered Pennsylvania-bred
thoroughbred horses.
(2) Claiming and nonclaiming Pennsylvania Breeding Fund
races which prefer registered Pennsylvania-bred thoroughbred
horses as starters. In these races, should eight or more
registered Pennsylvania-bred horses pass the entry box, the
race shall be considered closed to horses other than
registered Pennsylvania-bred thoroughbred horses.
(e) Those Pennsylvania Breeding Fund moneys due licensed
corporations as outlined in subsections (c) and (d) but not
expended during the calendar year may be carried forth in the
fund on the account of said licensed corporations to be expended
during the succeeding year in addition to said corporations'
fund moneys annually due them for purses.
(f) The Pennsylvania Breeding Fund Advisory Committee, under
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the jurisdiction of the State Horse Racing Commission, is hereby
established and shall be part of the Pennsylvania State Horse
Racing Commission. The commission shall consist of five members,
all of whom shall be residents of Pennsylvania, to be appointed
by the commission by June 1 of each year. The committee shall
consist of two members of the Pennsylvania Horse Breeders'
Association, one member from the licensed corporations, one
member from the association representing horsemen racing in
Pennsylvania and one member of the commission. If any member
other than the commission member has not been recommended by
June 1 of each year, the commission shall make an appointment
for the organization failing to so recommend a member of the
committee. The committee shall assist and advise the commission
under the provisions of this act but shall have no power in
administering the fund. The members of the committee shall
receive no compensation for their services as members.
(g) The State Horse Racing Commission may contract with the
Pennsylvania Horse Breeders' Association as the sole responsible
body for the registration and records of Pennsylvania-breds. The
Pennsylvania Horse Breeders' Association shall advise the
commission when called upon and shall determine the
qualifications for Pennsylvania-bred thoroughbred horses and
Pennsylvania sires. Its registration and record facts are hereby
declared as official Pennsylvania records. At the close of each
calendar year, the Pennsylvania Horse Breeders' Association,
through the Pennsylvania Breeding Fund Advisory Committee, shall
submit to the commission for its approval an itemized budget of
projected expenses for the ensuing year relating to the
administration and development of the Pennsylvania Breeding Fund
program. The commission, on no more than a quarterly basis,
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shall reimburse from the fund the Pennsylvania Horse Breeders'
Association for those expenses actually incurred in the
administration and development of the Breeding Fund program.
Section 224. Pennsylvania Sire Stakes Fund.
(a) There is hereby created a restricted account in the
State Racing Fund to be known as the Pennsylvania Sire Stakes
Fund which shall consist of the money appropriated under the
provisions of section 222 and which shall be administered by the
State Harness Racing Commission.
(b) Sixty percent of the money remaining in the excess fund
account of the Pennsylvania Sire Stakes Fund at the end of the
calendar year in which this subsection is enacted shall be
distributed to licensed corporations that conduct harness horse
race meetings to be used in the next succeeding calendar year as
purse money for Pennsylvania-sired horses. The remaining 40% of
the money in the excess fund account at the end of the calendar
year of the enactment of this subsection, together with the
interest earned on that money, shall be distributed to licensed
corporations that conduct harness horse race meetings to be used
in the next succeeding calendar year following the next
succeeding calendar year as purse money for Pennsylvania-sired
horses. After deduction of sufficient funds to cover the State
Harness Racing Commission's cost of administration, 80%, unless
a smaller percentage is necessary in order to comply with the
minimum dollar requirement of subsection (e), of all remaining
moneys in the Pennsylvania Sire Stakes Fund at the end of the
calendar year shall be distributed to licensed corporations that
conduct harness horse race meetings to be used as purse money
for Pennsylvania-sired horses. The State Harness Racing
Commission may then allocate up to a total of and not exceeding
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40% of the total amount to be distributed to licensed
corporations in a calendar year for use for a series of
championship final races at the race tracks of licensed
corporations that conduct harness horse race meetings. The State
Harness Racing Commission shall allocate the moneys to these
championship final races in an equal amount for each sex, age
and gait for two- and three-year-old trotters and pacers. The
State Harness Racing Commission shall determine conditions
establishing eligibility to these final events. No pari-mutuel
harness track shall be awarded more than 50% of the championship
final races in any calendar year. The State Harness Racing
Commission shall schedule these final events so as to evenly
alternate classes at each race track each year. After the
allocation for the championship final races has been determined,
the remaining funds to be distributed to licensed corporations
that conduct harness horse race meetings shall be divided
equally among the licensed corporations. Each licensed
corporation shall divide the funds received equally for each of:
(1) four two-year-old races; one pace for colts, one
pace for fillies, one trot for colts and one trot for
fillies; and
(2) four three-year-old races; one pace for colts, one
pace for fillies, one trot for colts and one trot for
fillies.
(c) Each allotment shall provide purse money for the
respective races. The purse money shall be in addition to any
entry fees or other funds available.
(d) Entry for these races shall be limited to harness horses
which were sired by a standardbred stallion regularly standing
in Pennsylvania and each race shall be designated a Pennsylvania
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sire stakes race. The State Harness Racing Commission shall make
the provisions and regulations as it shall deem necessary for
the proper administration of the entry restriction.
(e) The remaining moneys in the Pennsylvania Sire Stakes
Fund up to a total of and not exceeding $25,000 for each
agricultural fair and one- or two-day events as defined in
harness racing commission regulations shall be divided equally
among those agricultural fairs and one- or two-day events, not
to exceed more than five one- or two-day events per year and as
authorized by the State Harness Racing Commission, provided that
no more than two one-day or two-day events per county are
authorized unless, after a date established by the commission,
all five of the events have not been allocated, conducting
harness horse races for two-year-old and three-year-old harness
horses: Provided, however, That in no event shall less than
$225,000 be allocated from the Pennsylvania Sire Stakes Fund and
be divided equally among those agricultural fairs and one- or
two-day events conducting these races. Each fair or one- or two-
day events receiving the funds shall divide the total amount
equally among all eligible races for two-year-old and three-
year-old harness horses and shall apply the funds solely as
additional purse funds. Only races to which entry is restricted
to Pennsylvania-sired horses shall be eligible. The State
Harness Racing Commission shall make the provisions and
regulations as it shall deem necessary for the proper
administration of all racing provided for in this subsection,
including, but not limited to, portable stall rentals at one-day
or two-day events.
(f) The fund moneys remaining following disbursements as
directed in subsections (b), (c), (d) and (e) shall, except as
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provided in subsection (b), be divided among active licensed
corporations that conduct harness horse race meetings under this
act in direct proportion to the rate by which each licensed
corporation generated the fund moneys during the previous year.
The fund moneys so divided shall be used for purses as follows:
(1) A minimum of four races, claiming and nonclaiming,
shall be carded per week on the condition sheet for overnight
claiming and nonclaiming Pennsylvania Fund races which
restrict entry to registered Pennsylvania-sired or wholly
Pennsylvania-owned harness horses.
(2) Claiming and nonclaiming Pennsylvania Fund races
which prefer registered Pennsylvania-sired harness horses as
starters. In these races, should seven or more registered
Pennsylvania-sired harness horses pass the entry box, the
race shall be considered closed to horses other than
registered Pennsylvania-sired harness horses.
Section 225.1. Fair Fund proceeds.
The Secretary of Agriculture shall distribute certain moneys
in the Fair Fund annually, on or before March 1, for
reimbursement for each county agricultural society and each
independent agricultural society conducting harness horse racing
during its annual fair other than races for two- and three-year
old colts and fillies, an amount of money equal to that used
during their annual fair as purse money for harness horse
racing, track and stable maintenance, starting gate rental and
the cost of all harness horse racing officials required during
their annual fair, but not more than $13,000, a minimum of
$4,000 of which must be used for purse money and the balance of
said allotment per fair, not used for purse money over the
minimum $4,000 allotment, shall be used for said specific
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purposes herein before referenced, or otherwise said allotment
shall be retained in the fund. The State Harness Racing
Commission shall cause to be carried out as its responsibility a
yearly inspection of each track facility and shall advise each
operating fair of necessary track maintenance which is necessary
to insure adequate racing surface during the course of scheduled
fairs and racing events. If it is the opinion of the commission
that the fair society or event sponsor is not adequately
financing track maintenance through its permissible
reimbursement under this paragraph, the commission shall so
surcharge the Fair Fund account of said fair society or event
sponsor to effectuate said remediation.
Section 226. Hearing of refusal or revocation of license.
If the commissions refuse to grant any license applied for
under this act, or shall revoke or suspend any license granted,
the applicant or licensee may demand, within ten days after
notice of the decision of the appropriate commission, a hearing
before the appropriate commission. The commission shall give
prompt notice of the time and place for the hearing at which
time the commission will hear the applicant or licensee. Pending
the hearing and final determination, the action of the
commissions in refusing to grant or in revoking or suspending a
license shall remain in full force. The commissions may continue
any hearing from time to time for the convenience of any of the
parties. Any of the parties affected by a hearing may be
represented by counsel. In the conduct of the hearing, the
commissions shall not be bound by technical rules of evidence,
but all evidence offered before the commissions shall be reduced
to writing. All evidence, exhibits and findings of the
commissions shall be permanently preserved and shall constitute
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the record of the commission. In connection with the hearing,
the commissions shall have the power to administer oaths and
examine witnesses, and may issue subpoenas to compel attendance
of witnesses and the production of all material and relevant
reports, books, papers, documents, correspondence and other
evidence. The commissions may by order refer to one or more of
its officers the duty of taking testimony in the matter and to
report to the commission. Within 30 days after the conclusion of
the hearing, the appropriate commission shall make a final order
in writing, setting forth the reasons for the action taken by it
and a copy thereof shall be served on the applicant or licensee.
Section 227. Approval of the racing facility.
The commissions shall not grant to a corporation formed under
this act a license to conduct a horse race meeting at which
pari-mutuel betting may be conducted, until the corporation has
submitted to the appropriate commission a statement of the
location of its proposed grounds and race track, together with a
plan of the track and plans of all buildings, seating stands and
other structures in a form as the appropriate commission may
prescribe. All plans shall be approved by the appropriate
commission before the issuance of any license to conduct a pari-
mutuel horse race meeting.
Section 228. Prohibition of wagering by certain officials,
employees and minors.
No commissioner, executive secretary, deputy, officer,
representative, employee or counsel of the commission shall
wager upon the outcome of any horse race conducted at a track at
which pari-mutuel wagering is conducted by any licensed
corporation of the commissions. No licensed corporation shall
permit any person who is actually and apparently under 18 years
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of age to wager at a race meeting conducted by it. No licensed
corporation shall permit any person who is under 18 years of age
to attend a horse race meeting conducted by it unless the person
is accompanied by a parent or guardian. This section shall not
be construed to prohibit persons under 18 years of age, who are
legally employed, from being upon the race track premises for
the sole purpose of engaging in the performance of their duties
as employees. The commissions shall, by rule, provide for
enforcement of this section.
Section 229. State horse racing veterinarians and State
stewards.
(a) The State Horse Racing Commission shall appoint and
employ licensed veterinarians and stewards to serve as the horse
racing veterinarians and State stewards for horse racing,
respectively, at each meeting conducted by a corporation
licensed by the State Horse Racing Commission. The State Horse
Racing Commission shall have the authority to employ other
individuals as shall be necessary to carry out the
responsibilities of this section.
(b) The costs and compensation of the horse racing
veterinarians, State stewards and other individuals employed
shall be fixed and paid by the State Horse Racing Commission.
(c) The State Horse Racing Commission shall establish a job
description and professional criteria for stewards to assure
that they have a working knowledge of the horse racing industry.
Section 230. State harness racing veterinarians.
(a) The State Harness Racing Commission shall appoint and
employ licensed veterinarians to serve as the harness racing
veterinarians for harness racing at each meeting conducted by a
corporation licensed by the State Harness Racing Commission. The
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State Harness Racing Commission shall have the authority to
employ other individuals as shall be necessary to carry out the
responsibilities under this section.
(b) The costs and compensation of the harness racing
veterinarians and other individuals employed to carry out the
provisions of this act shall be fixed and paid by the State
Harness Racing Commission.
Section 231. Free passes, cards or badges.
(a) A licensed corporation shall not issue free passes,
cards or badges without admission tax, except to persons
hereafter described: officers, employees and shareholders of the
corporation conducting the race meeting; members, officers and
employees of the commissions; members of horse racing
associations of other states and foreign countries; public
officers engaged in the performance of their duties; persons
employed and accredited by the press to attend such meeting;
owners, stable managers, trainers, jockeys, concessionaries and
other persons whose actual duties require their presence at the
race tracks.
(b) The commissions may allow a licensed corporation to
issue free passes, cards or badges for special promotional
programs and seasonal discount ticket programs, so long as the
corporation has obtained approval from the appropriate
commission. The admissions taxes under section 208 shall be
imposed on the price of all seasonal discount tickets sold by a
licensed corporation.
(c) The issuance of tax-free passes, cards or badges shall
be under the rules and regulations of the commissions. A list of
all persons, except persons admitted under an approved special
promotional program or seasonal discount ticket program, to whom
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free passes, cards or badges are issued shall be filed with the
appropriate commission.
Section 232. Political subdivision agricultural fairs and horse
race meetings not licensed to conduct pari-mutuel
wagering.
Pari-mutuel wagering on horse races at any county or other
political subdivision, agricultural or other fair shall not be
authorized. No lottery, pool selling, bookmaking or any other
kind of gambling upon the results of races, heats or contests of
speed of horses shall be allowed at any fair or at any horse
race meeting conducted in the State, except those licensed to
operate pari-mutuel wagering under the provisions of this act.
Section 233. Monitoring of wagering on video screens.
Every corporation licensed to conduct pari-mutuel betting
shall display on video screens the approximate odds or
approximate will-pays on each horse for each race as well as any
combination of races including, but not limited to, quinellas,
exactas, perfectas and any other combination or pool of races.
No display of approximate odds or approximate will-pays shall be
required where the wager is on horses in four or more races,
such as "Pick 4, Pick 5 or Pick 6." In addition to displaying
the amount of money wagered, the approximate odds or approximate
will-pays on each horse or combination of horses shall be shown
on video screens in each wagering division. For trifectas, in
lieu of odds or approximate will-pays, the amount of money being
wagered on each horse to win in the trifecta pool shall be
displayed on video screens separately from any other
information. The above required information shall be displayed
from the opening of bets or wagering and be continually
displayed until the wagering is closed. At least one video
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screen in each wagering division shall display the amount of
money wagered on each horse involved in any trifecta pool.
Section 234. Simulcasting.
The State Horse Racing Commission and the State Harness
Racing Commission shall only permit intrastate simulcasting of
live racing between two licensed corporations when each
continues to schedule 95% of the total number of horse or
harness racing days scheduled in 1986 at the facility where each
said licensed corporation conducts its horse or harness racing
dates, and when the average number of live horse or harness
races per race day equals 90% of the average number of live
horse or harness races conducted per day in 1985 at the facility
where each said licensed corporation conducts its horse or
harness racing dates, subject to any actions or activities
beyond the control of the licensee: Provided, however, That for
any licensed corporation that was granted a permanent license
for horse racing and operating at a facility where the average
daily handle at the facility at which the licensed corporation
conducts racing dates is less than $150,000 in any calendar year
after 1985, the State Horse Racing Commission may permit
intrastate simulcasting when the licensed corporation first
schedules a minimum of 50 racing days in the calendar year in
which it wishes to simulcast. A newly licensed corporation
racing at the facility may be permitted to intrastate simulcast
by the State Horse Racing Commission when it first schedules at
least 50 racing dates in the year in which it wishes to
simulcast. If a newly licensed corporation is awarded harness or
horse racing dates after 1987 and races those dates at a horse
or harness racing facility existing in 1987, other than a
facility whose average daily handle is less than $150,000, the
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respective commissions shall not permit intrastate simulcasting
unless the same number of horse or harness dates scheduled at
that facility in 1987 are scheduled at that facility in the year
that the corporation wishes to simulcast subject to any actions
or activities beyond the control of the licensees (i.e. act of
God, strike). For a licensed corporation awarded racing dates at
a facility which did not conduct horse or harness racing prior
to 1987, the respective commissions may permit intrastate
simulcasting if the licensed corporation is the only corporation
operating that facility when that corporation first schedules a
minimum of 125 days of racing dates in the calendar year in
which it wishes to simulcast or when more than one such
corporation is awarded dates for racing at the same facility
when those corporations first schedule a minimum of 200 days of
racing in the calendar year in which they wish to simulcast. For
purposes of this section a racing day shall consist of a minimum
of eight live races, except at thoroughbred tracks on Breeders'
Cup Event Day. For any licensed racing corporation engaged in
simulcasting, regardless of location or distance from another
licensed racing corporation, there shall exist a written
agreement with the horseman's organization representing a
majority of the owners and trainers at both the sending and
receiving racetracks. If no agreement can be reached, then the
licensed corporation may petition the court of common pleas in
the county in which the licensed corporation racetrack is
located, which may, upon good cause shown by the licensed
corporation that failure to consent would be detrimental to the
Pennsylvania racing industry, direct the organization
representing the horsemen to approve the simulcast agreement.
The respective commission may then authorize the simulcasting,
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if, in the opinion of the appropriate commission, such
simulcasting will have significant value to the Pennsylvania
racing industry. The simulcast signal shall be encoded, and the
racetrack receiving the simulcast signal shall not send this
signal anywhere other than public locations authorized under
section 218 or 218-A. All forms of pari-mutuel wagering
described in section 221 shall be allowed on races to be
televised by simulcasting under this section. The State Horse
Racing Commission and the State Harness Racing Commission may
promulgate regulations on wagering and the operation of these
races. All money wagered by patrons on these races shall be
computed in the amount of money wagered each racing day for
purposes of taxation under section 222. In the event the
simulcast is between a thoroughbred racetrack and a harness
racetrack, both commissions shall have jurisdiction, and any
approval required hereunder must be received from both
commissions: Provided, however, That if no agreement can be
reached between the horseman's organization aforementioned, then
the licensed corporation may petition the court of common pleas
in the county in which the licensed corporation racetrack is
located, which may, upon good cause shown by the licensed
corporation that failure to consent would be detrimental to the
Pennsylvania racing industry, direct the organization
representing the horsemen to approve the simulcast agreement.
The respective commissions may then authorize the simulcasting
if, in the opinions of the respective commission, such
simulcasting will have a significant value to the Pennsylvania
racing industry. The provisions of this section with regard to
the required number of racing days may be waived or modified by
the applicable commission if the waiver or modification has been
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consented to by the horseman's organization representing a
majority of the owners and trainers at the racetrack where the
racing days are to be scheduled or raced.
Section 235. Commingling.
(a) This section shall be applicable only to licensed
thoroughbred racing corporations.
(b) The race secretary shall receive entries and
declarations as an agent for the licensed corporation for which
the race secretary acts. The race secretary or an individual
designated by the licensed corporation may receive stakes,
forfeits, entrance money, jockey's and other fees, purchase
money in claiming races and other money that can properly come
into his possession as an agent for the licensed corporation for
which the race secretary or designee is acting.
(c) A licensed corporation shall maintain a separate
account, called a Horsemen's Account. Money owing to owners in
regard to purses, stakes, rewards, claims and deposits shall be
deposited into the Horsemen's Account. Funds in the account
shall be recognized and denominated as being the sole property
of owners. Deposited funds may not be commingled with funds of
the licensed corporation unless a licensed corporation has
established, in favor of the organization which represents a
majority of the owners and trainers racing with the licensed
corporation, an irrevocable clean letter of credit with an
evergreen clause. The minimum amount of the credit must be the
greater of $1,000,000 or 110% of the highest monthly balance in
the Horsemen's Account in the immediate prior year. To calculate
the monthly balance in the Horsemen's Account, the sum of the
daily balances shall be divided by the number of days in the
month. The evergreen clause must provide that, 30 days prior to
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the expiration of the letter of credit, the financial
institution can elect not to renew the letter of credit; that,
upon this election, the financial institution must notify the
designee of the organization which represents a majority of the
owners and trainers racing with the licensed corporation, by
registered mail, return receipt requested, of the election not
to renew; and that the financial institution will honor the
letter of credit for six months after expiration. Purse money
earned by owners shall be deposited by the licensed corporation
in the Horsemen's Account within 48 hours after the result of
the race in which the money was earned has been declared
official and the purse has been released by the commission.
(d) A licensed corporation shall designate a bookkeeper who
is authorized to receive and disburse funds from the Horsemen's
Account. The bookkeeper must be bonded to provide indemnity for
malfeasance, nonfeasance and misfeasance. A certified copy of
the bond shall be filed with the commission.
(e) The Horsemen's Account and the investment and deposit
schedules relating to the account are subject to examination, at
reasonable times, by a designee of the organization which
represents a majority of the owners and trainers racing with the
licensed corporation and by the commission. The bookkeeper shall
provide each owner with access, at reasonable times during a
racing day, to the amount of funds in the Horsemen's Account
credited to that owner. At the close of a race meeting, the
bookkeeper shall mail to each owner a record of deposits,
withdrawals and transfers affecting the amount of funds in the
Horsemen's Account credited to that owner.
(f) The Horsemen's Account shall be audited periodically as
deemed appropriate by the commission. There shall be at least
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