Regular Session 2015-2016 House Resolution 0616 P.N. 2848

PRIOR PRINTER'S NO. 2637

PRINTER'S NO. 2848

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE RESOLUTION

No.

616

Session of

2015

INTRODUCED BY CAUSER AND CARROLL, DECEMBER 9, 2015

AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,

HOUSE OF REPRESENTATIVES, AS AMENDED, FEBRUARY 10, 2016

A RESOLUTION

Directing the Joint State Government Commission, with assistance

from the Independent Fiscal Office, to conduct a study on the

impact of regulations and policies concerning Pennsylvania's

horse racing industry.

WHEREAS, It is in the best interests of this Commonwealth to

to consider reforming the regulations and policies of

Pennsylvania's horse racing industry; therefore be it

RESOLVED, That the House of Representatives direct the Joint

State Government Commission, with assistance from the

Independent Fiscal Office, to conduct a study and provide a

report to the chairperson and minority chairperson of the

Agriculture and Rural Affairs Committee of the Senate and the

chairperson and minority chairperson of the Agriculture and

Rural Affairs Committee of the House of Representatives no later

than February 1, 2017. The report shall include an assessment of

the financial, regulatory and market factors listed under

paragraphs (1), (2), (3), (4), (5), (6), (7), (8) and (9), (9),

(10) AND 11 and shall offer recommendations on best practices in

each area for the Commonwealth to consider. The study shall

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provide an assessment of and recommendation on the following:

(1) Potential cost savings and regulatory streamlining

in the oversight of racing, including those associated with

combining Pennsylvania's gaming oversight functions, such as

horse racing, casino gaming and lottery, into a single,

coordinated entity.

(2) The necessity, efficiency and benefits of having

separate racing commissions or divisions within a single

commission for thoroughbred and harness tracks.

(3) A determination of best regulatory practices in

other jurisdictions, such as New York, Ohio and Maryland and

other states or provinces and comparing Pennsylvania's

approach against the best regulatory practices in other

jurisdictions.

(4) In addition to the Auditor General's June 17, 2014,

Special Performance Audit of the State Racing Fund, a

determination of what safeguards and policies can be

implemented to avoid future inappropriate cost allocations by

the Department of Agriculture of the Commonwealth to the

racing commissions.

(5) An evaluation of the cost effectiveness of the

Pennsylvania Equine Toxicology Research Laboratory and

comparing the laboratory's functions to other jurisdictions.

(6) Consideration of the imposition of increased fines

and the assessment of Pennsylvania Equine Toxicology Research

Laboratory costs against those found to have engaged in the

impermissible doping of race horses and examination of how to

strengthen property owner rights in the ejectment of bad

actors in racing.

(7) A determination of the economic return to the

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Commonwealth on the investment of gaming tax revenues

collected under the act of July 5, 2004 (P.L.572, No.71),

entitled, "An act amending Title 4 (Amusements) of the

Pennsylvania Consolidated Statutes, authorizing certain

racetrack and other gaming; providing for regulation of

gaming licensees; establishing and providing for the powers

and duties of the Pennsylvania Gaming Control Board;

conferring powers and imposing duties on the Department of

Revenue, the Department of Health, the Office of Attorney

General, the Pennsylvania State Police and the Pennsylvania

Liquor Control Board; establishing the State Gaming Fund, the

Pennsylvania Race Horse Development Fund, the Pennsylvania

Gaming Economic Development and Tourism Fund, the Compulsive

and Problem Gambling Treatment Fund and the Property Tax

Relief Fund; providing for enforcement; imposing penalties;

making appropriations; and making related repeals."

(8) A determination of the nature of thoroughbred and

standardbred breeding in this Commonwealth since the

enactment of the act of July 5, 2004 (P.L.572, No.71), and

comparing it to the nature of breeding before enactment of

the act of July 5, 2004 (P.L.572, No.71).

(9) A determination of how Pennsylvania's race horse

industry and regulatory entities can best be positioned for

future success or at a minimum financial stability in an

environment of declining race track patrons and handle,

competition from live racing from neighboring states and the

increasing availability of alternative gaming platforms, such

as Internet and mobile gaming and fantasy sports.

Specifically, the study shall consider options for reforming

and promoting horse racing meetings that will increase

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handle, reduce racing costs, promote the health of the horse

and advance the best interests of racing fans and bettors.

(10) AN EVALUATION OF THE BENEFITS AND HARMS TO

PENNSYLVANIA'S RACE HORSE INDUSTRY AND REGULATED ENTITIES OF

THE EXPANSION OF PARI-MUTUEL WAGERING, ADVANCED DEPOSIT

ACCOUNT WAGERING AND ELECTRONIC WAGERING TO SECONDARY PARI-

MUTUEL ORGANIZATIONS. THE EVALUATION SHALL INCLUDE:

(I) ASSESSING THE CURRENT PREVALENCE OF UNLAWFUL

ADVANCED DEPOSIT ACCOUNT WAGERING AND ELECTRONIC WAGERING

AND WAYS TO PREVENT OR ENFORCE THE LAW AGAINST UNLAWFUL

WAGERING.

(II) ASSESSING THE IMPACT OF THE EXPANSION ON LIVE

RACING AND CAPITAL INVESTMENT BY AND EMPLOYMENT AT

LICENSED RACING ENTITIES.

(III) THE APPROPRIATE TERMS, CONDITIONS AND

REQUIREMENTS THAT SHOULD BE IMPOSED TO PROTECT

PENNSYLVANIA'S RACE HORSE INDUSTRY AND TO ENSURE THE

INTEGRITY OF WAGERING IN THIS COMMONWEALTH IF THE

EXPANSION PROCEEDS.

(11) AN ASSESSMENT OF LIVE RACING MARKETING PROGRAMS AT

EACH TRACK AND THE IMPACT ON PARI-MUTUEL WAGERING AND PUBLIC

ATTENDANCE ON RACE DAYS. THIS ASSESSMENT SHALL INCLUDE

MARKETING OR ADVERTISING EXPENDITURES AND THE RETURN ON

INVESTMENT OF THOSE EXPENDITURES SPECIFIC TO RACING.

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