PRINTER'S NO. 333
No. 313 Session of 1977
INTRODUCED BY PETRARCA, LAUDADIO, BITTINGER, STEWART, BRUNNER,
GARZIA, NOVAK, DAVIES, GLEESON, TRELLO, CAPUTO, ABRAHAM,
M. M. MULLEN, MRKONIC, MISCEVICH, FEE, MILLIRON, MILANOVICH,
McLANE, YAHNER, PRATT, KOLTER, LETTERMAN, McGINNIS, TADDONIO,
DOMBROWSKI, F. TAYLOR, VALICENTI, COHEN AND C. GEORGE,
FEBRUARY 9, 1977
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 9, 1977
AN ACT
1 Providing for and regulating dog racing with pari-mutuel
2 wagering on the results thereof, creating the State Dog
3 Racing Commission as an independent administrative commission
4 and defining its powers and duties; providing for the
5 establishment and operation of dog racing plants; imposing
6 taxes on revenues of such plants; disposing of all moneys
7 received by the commission and all moneys collected from the
8 taxes; authorizing penalties; and making appropriations.
9 TABLE OF CONTENTS
10 Section 1. State Dog Racing Commission.
11 Section 2. General powers of State Dog Racing Commission.
12 Section 3. Incorporation.
13 Section 4. Filing of information concerning stock
14 transfers; necessity for commission's approval.
15 Section 5. Pari-mutuel betting at dog races.
16 Section 6. State admission tax.
17 Section 7. Licenses for dog racing meetings.
18 Section 8. Shareholders.
19 Section 9. Prohibition of interest by public officers,
1 public employees and party officers in pari-
2 mutuel dog racing activities.
3 Section 10. Officials at dog race meetings.
4 Section 11. License for participants and employees of dog
5 race meetings.
6 Section 12. Power of State Dog Racing Commission to impose
7 fines and penalties.
8 Section 13. Refunds.
9 Section 14. Place and manner of conducting pari-mutuel
10 betting.
11 Section 15. Books and records of pari-mutuel betting.
12 Section 16. Filing of certain agreements with the State Dog
13 Racing Commission.
14 Section 17. Disposition of pari-mutuel pools.
15 Section 18. Disposition and appropriation of funds accruing
16 under the provisions of this act.
17 Section 19. Revocation of license.
18 Section 20. Hearing of refusal or revocation of license.
19 Section 21. Approval of plans of corporation.
20 Section 22. Prohibition of wagering by certain officials,
21 employees and minors; prohibition of attendance
22 by minors.
23 Section 23. Free passes, cards, or badges.
24 Section 24. Employees at dog race meetings.
25 Section 25. Effective date.
26 The General Assembly of the Commonwealth of Pennsylvania
27 hereby enacts as follows:
28 Section 1. State Dog Racing Commission.
29 The State Dog Racing Commission is hereby established as an
30 independent administrative commission, and it shall have general
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1 jurisdiction over all pari-mutuel dog racing activities in the
2 State and the corporations engaged therein. Such commission
3 shall consist of three members who shall be appointed by the
4 Governor, by and with the advice and consent of the Senate. The
5 Governor shall designate one of the members as chairman of the
6 Commission. The chairman of such commission shall hold office
7 for a term of three years, and the other two members shall hold
8 office for terms of one and two years, respectively, as
9 designated by the Governor. Thereafter their successors shall be
10 appointed for a full term of three years. Such commissioners
11 shall receive no salary but shall be reimbursed for expenses
12 incurred in the performance of their official duties. The
13 commission shall appoint such deputies, secretaries, officers,
14 representatives and counsel as it may deem necessary, who shall
15 serve during its pleasure, and shall also appoint such employees
16 it may deem necessary and whose duties shall be prescribed by
17 the commission and whose compensation shall be fixed by the
18 commission within the appropriations available therefor. It
19 shall be the duty of the secretary to keep a full and faithful
20 record of the proceedings of such commission, preserve at the
21 general office of such commission all books, maps, documents,
22 and papers entrusted to his care, prepare for service such
23 papers and notices as may be required of him by the commission,
24 and perform such other duties as the commission may prescribe.
25 It shall be the duty of the secretary to keep, at the offices of
26 the commission, a docket setting forth the names of all
27 stockholders in all corporations licensed under this act, the
28 number of shares held by each such stockholder, and the date on
29 which each shareholder acquired his stock in the corporate
30 licensee. Such docket shall be open for public inspection. The
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1 commission, or such officers, employees or agents of the
2 commission as may be designated by the commission for such
3 purpose, shall have the power to administer oaths and examine
4 witnesses, and may issue subpoenas to compel attendance of
5 witnesses, and the production of all relevant and material
6 reports, books, papers, documents, correspondence, and other
7 evidence. Such commission shall, annually, by March 1, make a
8 full report to the Governor of its proceedings for the preceding
9 calendar year and such suggestions and recommendations as it
10 shall deem desirable.
11 Section 2. General powers of State Dog Racing Commission.
12 (a) General powers.--Pursuant to the provisions of this act,
13 the State Dog Racing Commission shall have power to supervise
14 generally all dog race meetings in this State at which pari-
15 mutuel betting is conducted. The commission may adopt rules and
16 regulations not inconsistent with this act to carry into effect
17 its purposes and provisions and to prevent circumvention or
18 evasion thereof.
19 (b) Specific powers.--Without limiting the generality of the
20 foregoing, and in addition to its other powers:
21 (1) The State Dog Racing Commission shall have power to
22 fix minimum and maximum charges for admission to dog race
23 meetings at which pari-mutuel betting is conducted, but such
24 minimum charges shall not be less than 50¢ for general
25 admission, exclusive of taxes, except that the commission
26 shall have power to fix the charge for admission of soldiers,
27 sailors and marines, in uniform, at one-half of the amount
28 fixed for such admission generally under authority of this
29 section, whether or not such one-half of the amount fixed is
30 less than the minimum prescribed therein.
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1 (2) The State Dog Racing Commission shall prescribe
2 rules and regulations for effectually preventing the use of
3 improper devices, the administration of drugs or stimulants,
4 or other improper acts for the purpose of affecting the speed
5 of dogs in races in which they are about to participate.
6 (3) The rules of the commission shall also provide that
7 all winning pari-mutuel tickets must be presented for payment
8 before April 1 of the year following the year of their
9 purchase and failure to present any such ticket within the
10 prescribed period of time shall constitute a waiver of the
11 right to participate in the award or dividend. After April 1
12 of the year following, all licensees will forward to the
13 State Treasurer all funds so held for such uncashed tickets.
14 Section 3. Incorporation.
15 (a) Certificate.--Any number of persons, not less than five,
16 may incorporate for the purpose of conducting dog race meetings
17 at which pari-mutuel betting will be conducted, with all the
18 general powers of corporations created under the laws of this
19 State, by making, signing, acknowledging and filing with the
20 Department of State a certificate which shall contain:
21 (1) The name of the proposed corporation.
22 (2) The objects for which it is to be formed and the
23 location at which it is proposed to conduct its business.
24 (3) The amount and description of the capital stock.
25 (4) The location of its principal business office.
26 (5) Its duration, which may be forever.
27 (6) The number of its directors, not less than 5 nor
28 more than 13.
29 (7) The names and post office addresses of the directors
30 for the first year.
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1 (8) The post office addresses of the subscribers and a
2 statement of the number of shares of stock which each agrees
3 to take in the corporation.
4 (b) Other requirements.--Each such certificate shall be
5 accompanied by the fees, bonus and taxes required by law in the
6 case of corporations organized under the act of May 5, 1933
7 (P.L.364, No.106), known as the "Business Corporation Law."
8 (c) Restrictions.--No corporation organized pursuant to this
9 act shall have or be given the right or power to conduct any dog
10 race meet pursuant to this act, except on obtaining a license
11 from the commission and at the location designated in its
12 certificate of incorporation as the place at which it was
13 proposed to conduct its business. This restriction shall not
14 apply to any such corporation whose racing plant or the
15 usefulness thereof or of any material part thereof, in the
16 discretion of the commission, shall, for any reason beyond the
17 control of such corporation, be totally destroyed or so
18 substantially interfered with or damaged as to render same unfit
19 for continued operation. Pending the rebuilding or restoration
20 of its usefulness, or the making of the required repairs to said
21 plant or the part thereof so destroyed or damaged, the State Dog
22 Racing Commission may license such corporation to conduct its
23 dog racing meetings at any other suitable location.
24 Section 4. Filing of information concerning stock transfers;
25 necessity for commission's approval.
26 (a) Affidavit.--Whenever a transfer of stock of any
27 corporation which is licensed under this act, or of any
28 corporation which leases to such licensee the track at which it
29 conducts pari-mutuel dog races or which owns 25% or more of the
30 stock of such licensee shall be made, there shall be filed,
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1 simultaneously, with the corporation which issued such stock the
2 following:
3 (1) In duplicate, an affidavit executed by the
4 transferee stating that he is to be the sole beneficial owner
5 thereof, and whether or not he:
6 (i) has been convicted of a crime involving moral
7 turpitude;
8 (ii) has been engaged in bookmaking or other forms
9 of illegal gambling;
10 (iii) has been found guilty of any fraud or
11 misrepresentation in connection with dog racing or
12 breeding;
13 (iv) has been guilty of any violation or attempt to
14 violate any law, rule or regulation of any dog racing
15 jurisdiction, for which suspension from dog racing might
16 be imposed in such jurisdiction; or
17 (v) has violated any rule, regulation or order of
18 the commission.
19 If the transferee is not, or is not to be, the sole beneficial
20 owner thereof, then there shall be annexed to said affidavit of
21 the transferee, and expressly stated in such affidavit to be
22 deemed a part thereof, a true and complete copy of all terms of
23 the agreement pursuant to which the stock is to be so held by
24 the transferee, including a detailed statement of the interest
25 therein of each person who is to have any interest therein; and
26 (2) In duplicate, an affidavit executed by each person
27 for whom the said stock, or any interest therein, is to be
28 held by said transferee, setting forth whether or not the
29 affiant:
30 (i) has been convicted of a crime involving moral
19770H0313B0333 - 7 -
1 turpitude;
2 (ii) has engaged in bookmaking or other forms of
3 illegal gambling;
4 (iii) has been found guilty of any fraud or
5 misrepresentation in connection with dog racing or
6 breeding;
7 (iv) has been guilty of any violation or attempt to
8 violate any law, rule or regulation of any dog racing
9 jurisdiction, for which suspension from dog racing might
10 be imposed in such jurisdiction; or
11 (v) has violated any rule, regulation or order of
12 the commission.
13 To each of such affidavits shall be annexed, and expressly
14 stated in such affidavit to be deemed a part thereof, a true and
15 complete copy of all the terms of the agreement pursuant to
16 which stock is to be so held by the transferee, including a
17 detailed statement of the interest therein of each person who is
18 to have any interest herein. Said corporation shall forthwith
19 file with the commission one of each of said duplicate
20 affidavits.
21 (b) Additional affidavit required.--If, after the filing of
22 any affidavit hereinabove required to be filed, there shall be
23 any change in the status of any such affiant with respect to any
24 of the matters set forth in subsection (a)(1) of the affidavit
25 theretofore filed by him, such affiant shall forthwith file with
26 the corporation with which his affidavit was so filed a new
27 affidavit executed by him in duplicate, setting forth such
28 change of status, and the corporation shall forthwith file one
29 of said affidavits with the commission.
30 (c) Additional affidavit required for stock transfers.--
19770H0313B0333 - 8 -
1 Whenever any change shall be made in the amount, nature, or
2 otherwise, of the interest of any person having an interest in
3 stock of any such corporation, or any new interest shall be
4 created therein, without a transfer thereof as hereinabove
5 provided, the record owner of such stock, and each person whose
6 interest therein has been so attempted to be changed or created,
7 shall file with the corporation which issued such stock, in
8 duplicate, affidavits as provided by subsection (a)(1) and (2),
9 except that such affidavits need not include the matter referred
10 to in subsection (a) unless then required pursuant to subsection
11 (b) and one copy thereof shall forthwith be filed by the
12 corporation with the commission.
13 (d) Commission's power to order divestment.--If the
14 commission determines that it is inconsistent with the public
15 interest, convenience, or necessity, or with the best interest
16 of dog racing generally, that any person continue to be a
17 stockholder of record, or the beneficial owner of any interest
18 in stock standing in the name of another in any corporation
19 licensed under this act, or of any corporation which leases to
20 such licensee the track at which it conducts pari-mutuel dog
21 racing or which owned 25% or more of the stock of such licensee,
22 the commission shall have full power and authority to order or
23 direct each such stockholder or beneficial owner to dispose of
24 his stock or interest therein within a period of time to be
25 specified by the commission, which period the commission shall
26 have full power and authority to extend from time to time.
27 (e) Hearing on divestment order.--If the commission shall
28 make any order or direction as provided in subsection (d), the
29 person aggrieved thereby shall be given notice of the time and
30 place of a hearing before the commission, at which the
19770H0313B0333 - 9 -
1 commission will hear such person in reference thereto. The
2 action of the commission in making any such order or direction
3 shall be reviewable in the Commonwealth Court.
4 Section 5. Pari-mutuel betting at dog races.
5 Three corporations shall be licensed by the State Dog Racing
6 Commission to conduct a pari-mutuel meet or meets. One
7 corporation shall conduct its meets in Philadelphia, one in
8 Pittsburgh and one in the central Pennsylvania area. No
9 corporation shall be licensed to conduct dog racing for more
10 than 60 days in any calendar year. Said pari-mutuel betting
11 conducted at such meeting shall be under the general supervision
12 and control of the State Dog Racing Commission which shall make
13 rules regulating the conduct of such pari-mutuel betting in
14 accordance with the provisions of this act. The Department of
15 Revenue is charged with the financial administration of pari-
16 mutuel betting as prescribed in this act and as supplemented by
17 the rules and regulations of the State Dog Racing Commission.
18 The Department of Revenue shall have authority to prescribe the
19 forms and the system of accounting to be employed, and through
20 its representatives shall, at all times, have power of access
21 to, and examination of, any equipment relating to such betting.
22 Section 6. State admission tax.
23 (a) Imposition of tax.--Every corporation holding a dog race
24 meeting pursuant to this act shall collect, in addition to the
25 admission price of tickets sold or otherwise disposed of, for
26 each such meeting held by such corporation, a tax equivalent to
27 15% of such admission price, or 15¢, whichever is greater, which
28 tax is hereby imposed. In case of failure to collect such tax,
29 the same shall be imposed upon the corporation holding the race
30 meeting. Such tax shall be paid to the Department of Revenue
19770H0313B0333 - 10 -
1 within ten days of collection. The amounts so collected shall be
2 paid into the State Treasury to the credit of the State Dog
3 Racing Fund. Before any corporation liable to pay the tax hereby
4 imposed shall hold any race meeting, or exercise any of the
5 powers conferred by this act, it or he shall pay all taxes
6 theretofore due, and shall file a statement with the Department
7 of Revenue containing the name of the place and stating the time
8 when such races are to be held.
9 (b) Powers of Department of Revenue.--The Department of
10 Revenue shall have the power to examine, or cause to be
11 examined, the books and records of the corporation so conducting
12 any such dog race meeting, and may hear testimony and take
13 proofs and material for its information therefrom, or from any
14 other data which shall be satisfactory to it. The Department of
15 Revenue may order and state an account for the tax due the
16 State, together with the expense of such examination. A penalty
17 of 5% and interest at the rate of 1% per month from the due date
18 to the date of payment of the tax shall be payable in case any
19 tax imposed by this section is not paid when due.
20 Section 7. Licenses for dog racing meetings.
21 (a) Application for and issuance of licenses.--Any
22 corporation desiring to conduct dog race meetings at which pari-
23 mutuel betting shall be permitted may apply to the State Dog
24 Racing Commission for a license to do so. If, in the judgment of
25 the State Dog Racing Commission, the public interest,
26 convenience or necessity will be served thereby and a proper
27 case for the issuance of such license is shown consistent with
28 the purposes of this act and the best interests of dog racing
29 generally, it may grant such license for a term ending not later
30 than November 15 next succeeding the granting thereof,
19770H0313B0333 - 11 -
1 specifying dates and hours during which, and the place where,
2 the licensee may operate. Any license so issued may be renewed
3 upon application.
4 (b) Conditions.--Every such license shall be issued upon
5 condition:
6 (1) That every dog race meeting at which pari-mutuel
7 betting is conducted shall be subject to the supervision of
8 and to the reasonable rules and regulations from time to time
9 prescribed by the State Dog Racing Commission.
10 (2) That pari-mutuel betting conducted thereunder shall
11 also be subject to the supervision of and to the reasonable
12 regulations from time to time prescribed by the Department of
13 Revenue. Any such license may also be issued upon any other
14 condition that the State Dog Racing Commission shall
15 determine to be necessary or desirable to insure that the
16 public interest, convenience or necessity is served.
17 (c) Forms and definition.--Applications for licenses shall
18 be in such form as may be prescribed by the commission and shall
19 contain such information or other material or evidence as the
20 commission may require. The term "racing week" shall not include
21 Sunday, and no racing shall be authorized or permitted on that
22 day.
23 (d) Grounds for refusal of license.--The commission may
24 refuse to grant a license to a corporation, if it shall
25 determine that:
26 (1) Any officer, director, member or stockholder of such
27 corporation applying for a license or of any corporation
28 which owns stock in or shares in the profits, or participates
29 in the management of the affairs of such applicant, or which
30 leases to such applicant the track where it shall operate:
19770H0313B0333 - 12 -
1 (i) has been convicted of a crime involving moral
2 turpitude;
3 (ii) has engaged in bookmaking or other forms of
4 illegal gambling;
5 (iii) has been found guilty of any fraud or
6 misrepresentation in connection with dog racing or
7 breeding;
8 (iv) has been guilty of any violation or attempt to
9 violate any law, rule or regulation of any dog racing
10 jurisdiction, for which suspension from racing might be
11 imposed in such jurisdiction; or
12 (v) has violated any rule, regulation or order of
13 the commission.
14 (2) The experience, character, or general fitness of any
15 officer, director, or stockholder of any of the aforesaid
16 corporations is such that the participation of such person in
17 dog racing or related activities would be inconsistent with
18 the public interest, convenience or necessity or with the
19 best interests of dog racing generally, but if the commission
20 determines that the interest of any stockholder referred to
21 in this paragraph or in paragraph (1) is sufficient, in the
22 opinion of the commission, to affect adversely the conduct of
23 pari-mutuel dog racing by such corporation in accordance with
24 the provisions of this act, the commission may disregard such
25 interest in determining whether or not to grant a license to
26 such corporation.
27 (3) The applicant is not the owner or the lessee of the
28 track at which it will conduct pari-mutuel dog racing
29 pursuant to the license applied for, or that any person, firm
30 association, or corporation other than the applicant shares,
19770H0313B0333 - 13 -
1 or will share, in the profits of the applicant, other than by
2 dividends as a stockholder, or participates, or will
3 participate, in the management of the affairs of the
4 applicant.
5 (e) Other grounds for refusal.--The commission shall also
6 have power to refuse to grant a license:
7 (1) To any corporation, the charter or certificate of
8 incorporation of which shall fail to contain a provision
9 requiring any stockholder, upon written demand of the
10 corporation, to sell his stock to the corporation at a price
11 to be fixed by the commission, provided such demand be made
12 pursuant to written direction of the commission, and from and
13 after the date of the making of such demand prohibiting the
14 transfer of such certificate of stock except to the
15 corporation.
16 (2) To any corporation which, having been a licensee,
17 has failed, in the opinion of the commission, to properly
18 maintain its track and plant in good condition or has failed
19 to make adequate provision for rehabilitation and capital
20 improvements to its tract and plant.
21 (f) Temporary license.--Pending final determination of any
22 question under this section, the commission may issue a
23 temporary license upon such terms and conditions as it may deem
24 necessary, desirable or proper to effectuate the provisions of
25 this act.
26 (g) Stock certificates.--The commission shall have power to
27 direct that every certificate of stock of a corporation licensed
28 under the provisions of this act shall bear a legend, plainly
29 and prominently imprinted upon the face of the certificate
30 reading: "This certificate of stock is transferable only subject
19770H0313B0333 - 14 -
1 to the provisions of the Pennsylvania Dog Racing Law."
2 Section 8. Shareholders.
3 (a) List.--Each licensee shall provide the commission with a
4 complete list of all its stockholders, indicating the number of
5 shares held by each shareholder.
6 (b) Duty to notify upon transfer.--It shall be the duty of
7 each licensee, within ten days after any transfer of stock of
8 such licensee, to notify the State Dog Racing Commission of such
9 transfer.
10 (c) Contents of certificate.--Each certificate of stock
11 issued by a licensee shall have noted on the face thereof that
12 the person whose name is indicated as the owner of the shares of
13 stock represented by such certificate is the sole and absolute
14 owner thereof, and that he is not holding the shares of stock or
15 any portion of the shares of stock represented by said
16 certificate in trust for any person, partnership, firm or
17 corporation whatsoever, who or which is prohibited by this act
18 from owning such shares of stock. If any of the shares of stock
19 represented by a certificate of stock are held subject to the
20 terms of either an inter vivos or testamentary trust for the
21 benefit of any person who could lawfully own such stock in his
22 own name, such fact shall be so noted on the face of the
23 certificate and a copy of the instrument which created the trust
24 shall be attached thereto. A duplicate copy of the instrument
25 which created the trust shall be filed with the commission.
26 (d) Forfeiture of stock.--No property rights shall exist in
27 any shares of stock of any licensee which are held in trust
28 contrary to the provisions of this section and the same shall be
29 forfeited to the Commonwealth of Pennsylvania, after reasonable
30 notice, and upon hearing and proof thereof in any suit
19770H0313B0333 - 15 -
1 instituted by the Attorney General of Pennsylvania in
2 Commonwealth Court. Upon it being established that such stock is
3 subject to forfeiture by legal adjudication as herein provided,
4 the State Dog Racing Commission shall sell such forfeited stock
5 at public sale, upon proper notice, to the highest public
6 bidder. The proceeds from such sale shall be deposited in the
7 General Fund of the Commonwealth of Pennsylvania.
8 (e) Definition.--As used in this section the term "licensee"
9 shall mean any association or corporation which holds any
10 license from the State Dog Racing Commission, or any firm,
11 association or corporation which owns or leases to any licensed
12 association or corporation a race track at which pari-mutual dog
13 racing is conducted, or any firm, association or corporation
14 which participates in the management of any association or
15 corporation which holds any license from the commission.
16 (f) Construction of section.--The provisions of this section
17 shall be in effect in addition to the provisions of section 4.
18 Section 9. Prohibition of interest by public officers, public
19 employees and party officers in pari-mutuel dog
20 racing activities.
21 (a) General rule.--No public officer, public employee or
22 party officer shall:
23 (1) hold any license from the State Dog Racing
24 Commission;
25 (2) own or hold, directly or indirectly, any proprietary
26 interest, stock or obligation of any firm, association or
27 corporation:
28 (i) which is licensed by such commission to conduct
29 pari-mutuel dog racing,
30 (ii) which is licensed to conduct its occupation,
19770H0313B0333 - 16 -
1 trade or business at dog race tracks at which pari-mutuel
2 dog race meets are conducted,
3 (iii) which owns or leases to any licensed
4 association or corporation a dog race track at which
5 pari-mutuel racing is conducted; or
6 (iv) which participates in the management of any
7 licensee conducting pari-mutuel dog racing;
8 (3) hold any office or employment with any firm,
9 association or corporation specified in paragraph (2); or
10 (4) sell (or be a member of a firm or own 10% or more of
11 the stock of any corporation which sells) any goods or
12 services to any firm, association or corporation specified in
13 paragraph (2).
14 The provisions of paragraph (3) shall not apply to a public
15 employee of a political subdivision (other than a police officer
16 or paid employee of a police department, sheriff's office,
17 district attorney's office or other law enforcement agency)
18 whose compensation is less than $6,000 per annum, except that
19 such employment of employees of a political subdivision may be
20 prohibited by ordinance, resolution or local law adopted by the
21 local legislative body or other governing board of such
22 political subdivision.
23 (b) Penalty. Notwithstanding any other provision of law and
24 in addition to any other cause of removal provided by law, a
25 knowing and wilful violation of this section shall be cause for
26 removal from public office, public employment or party office.
27 In any such case, such public officer, public employee or party
28 officer, violating this section, shall be removed from office by
29 appropriate authority having the power of removal or at the suit
30 of the Attorney General.
19770H0313B0333 - 17 -
1 (c) Refusal to grant, and suspension and revocation of
2 licenses.--The State Dog Racing Commission shall have the power
3 to refuse to grant or to revoke or suspend a license of any
4 firm, association or corporation which aids or knowingly permits
5 or conspires to permit any public officer, public employee or
6 party officer to acquire or retain any interest prohibited by
7 this section.
8 (d) Definitions.--The following words and phrases when used
9 in this section shall have, unless the context clearly indicates
10 otherwise, the meanings given to them in this subsection:
11 "Party officer." The following members or officers of any
12 political party:
13 (1) A member of a National committee.
14 (2) A chairman, vice-chairman, secretary, treasurer of
15 counsel of a State committee.
16 (3) A county chairman, vice-chairman, counsel, secretary
17 or treasurer of a county committee.
18 (4) A city chairman, vice-chairman, counsel, secretary
19 or treasurer of a city committee.
20 "Public employee." Every person employed by the Commonwealth
21 or any political subdivision thereof.
22 "Public officer." Every person elected to any public office
23 of the Commonwealth or any political subdivision thereof.
24 Section 10. Officials at dog race meetings.
25 At all dog race meetings licensed by the State Dog Racing
26 Commission in accordance with the provisions of this act,
27 qualified stewards, judges and starters shall be approved by the
28 commission. Such officials shall enforce the rules and
29 regulations of the State Dog Racing Commission and shall render
30 regular written reports of the activities and conduct of such
19770H0313B0333 - 18 -
1 race meetings to the State Dog Racing Commission. The
2 compensation of such judges and starters shall be fixed by the
3 State Dog Racing Commission and paid by the corporation
4 conducting such race meeting.
5 Section 11. License for participants and employees of dog race
6 meetings.
7 (a) General rule.--For the purpose of maintaining a proper
8 control over dog race meetings conducted pursuant to this act,
9 the State Dog Racing Commission may license trainers and such
10 other persons participating in dog race meets, as the commission
11 may by rule prescribe, including, if the commission deems it
12 necessary to do so, owners and some or all persons exercising
13 their occupation or employed at dog race meets. The State Dog
14 Racing Commission may, by rule, fix the license fees to be paid
15 by persons or corporations so licensed, except that such
16 occupational license fees so fixed shall not exceed $5, which
17 fees shall be paid to the commission and by it paid into the
18 State Treasury through the Department of Revenue and credited to
19 the State Dog Racing Fund. All such licenses, unless revoked for
20 cause, shall be for the period ending December 31 of the year in
21 which the same shall be issued. The application shall be in such
22 form and contain such information as the commission may require.
23 (b) Issuance of license.--If the State Dog Racing Commission
24 shall find that the experience, character and general fitness of
25 the applicant are such that the participation of such person in
26 dog race meets will be consistent with the public interest,
27 convenience and necessity, and with the best interests of dog
28 racing generally in conformity with the purposes of this act, it
29 may thereupon grant a license.
30 (c) Grounds for refusal to grant license.--Without limiting
19770H0313B0333 - 19 -
1 the generality of subsection (b), the commission may refuse to
2 issue a license pursuant to this section, if it shall find that
3 the applicant:
4 (1) Has been convicted of a crime involving moral
5 turpitude.
6 (2) Has engaged in bookmaking or other form of illegal
7 gambling.
8 (3) Has been found guilty of any fraud or
9 misrepresentation in connection with dog racing, or breeding.
10 (4) Has been found guilty of any violation or attempt to
11 violate any law, rule or regulation of dog racing in any
12 jurisdiction, for which suspension from dog racing might be
13 imposed in such jurisdiction.
14 (5) Has violated any rule, regulation or order of the
15 commission.
16 (d) Suspension and revocation of licenses.--The commission
17 may suspend or revoke a license issued pursuant to this section,
18 if it shall determine that:
19 (1) The applicant or licensee:
20 (i) has been convicted of a crime involving moral
21 turpitude;
22 (ii) has engaged in bookmaking or other form of
23 illegal gambling;
24 (iii) has been found guilty of any fraud in
25 connection with dog racing or breeding;
26 (iv) has been guilty of any violation or attempt to
27 violate any law, rule or regulation of any dog racing
28 jurisdiction for which suspension from dog racing might
29 be imposed in such jurisdiction; or
30 (v) who has violated any rule, regulation or order of
19770H0313B0333 - 20 -
1 the commission.
2 (2) That the experience, character, or general fitness
3 of any applicant or licensee is such that the participation
4 of such person in dog racing or related activities would be
5 inconsistent with the public interest, convenience or
6 necessity or with the best interests of dog racing generally.
7 (e) Temporary licenses.--Pending final determination of any
8 question under this section, the commission may issue a
9 temporary license upon such terms and conditions as it may deem
10 necessary, desirable or proper to effectuate the provisions of
11 this act.
12 Section 12. Power of State Dog Racing Commission to impose
13 fines and penalties.
14 In addition to its power to suspend or revoke licenses
15 granted by it, the State Dog Racing Commission is hereby
16 authorized and empowered to impose fines upon any corporation,
17 association, or person participating in any way in any dog race
18 meet at which pari-mutuel betting is conducted, other than as a
19 patron, and whether licensed by the commission or not, for a
20 violation of any provision of this act or the rules promulgated
21 by the commission pursuant thereto, not exceeding $5,000 for
22 each violation, which fines shall be paid into the State
23 Treasury through the Department of Revenue and credited to the
24 General Fund. The action of the commission in imposing any
25 monetary fine shall be subject to appeal to Commonwealth Court
26 and as approved by that court, or if no appeal is taken, then as
27 imposed, may be collected in an action of assumpsit.
28 Section 13. Refunds.
29 Moneys received by the commission pursuant to this act may,
30 within one year from the receipt thereof, be refunded, to the
19770H0313B0333 - 21 -
1 party for whose account the same were received, on proof
2 satisfactory to the commission that:
3 (1) Such moneys were in excess of the amount required by
4 law.
5 (2) The license for which application was made has been
6 refused by the commission.
7 (3) Such moneys were received as a fine and the
8 commission has, after review, reduced the amount of such
9 fine.
10 (4) Upon appeal, the court reduced or remitted the fine
11 imposed and paid.
12 Such refunds shall, upon approval by the commission and after
13 approval by the Board of Finance and Revenue, be paid from any
14 moneys in the State Dog Racing Fund and as much of such moneys
15 as may be necessary from time to time is hereby appropriated for
16 that purpose.
17 Section 14. Place and manner of conducting pari-mutuel
18 betting.
19 Any corporation licensed to conduct pari-mutuel betting at a
20 dog race meeting shall provide a place or places within race
21 meeting grounds or enclosure, at which such licensee shall
22 conduct the pari-mutuel system of betting by its patrons on the
23 result of the dog races at such meetings. Such licensee shall
24 cause to be erected a sign or board upon which shall be
25 displayed the approximate straight odds on each dog in any race;
26 the value of a $2 winning mutuel ticket, straight, place or show
27 on the first three dogs in the race; the elapsed time of the
28 race; the value of a $2 winning daily double ticket, if a daily
29 double be conducted, and any other information that the State
30 Dog Racing Commission may deem necessary for the guidance of the
19770H0313B0333 - 22 -
1 general public. The commission may prescribe, by rule, the type
2 and kind of equipment to be used for the display of the
3 foregoing information or any part thereof.
4 Section 15. Books and records of pari-mutuel betting.
5 Every corporation, conducting dog race meetings at which
6 pari-mutuel betting is authorized, shall keep its books and
7 records so as to clearly show by separate record the total
8 amount of money contributed to every pari-mutuel pool, including
9 daily double pools, if any. The Department of Revenue or its
10 duly authorized representative shall, at all reasonable times,
11 have access to all such books and records for the purpose of
12 examining and checking the same and ascertaining whether or not
13 the proper amount or amounts due to the State of Pennsylvania
14 are being paid by such licensed corporation.
15 Section 16. Filing of certain agreements with the State Dog
16 Racing Commission.
17 Every corporation licensed to conduct dog race meetings at
18 which pari-mutuel betting is permitted shall promptly after
19 entering any lease agreement concerning any concession, labor
20 management relation, the hiring of designated classes of
21 officers, employees, or contractors specified by the commission,
22 or any such other contract, agreement or arrangements as the
23 State Dog Racing Commission may from time to time prescribe,
24 file with the State Dog Racing Commission a true and correct
25 copy, or an accurate summary, if oral, thereof.
26 Section 17. Disposition of pari-mutuel pools.
27 Every corporation authorized under this act to conduct pari-
28 mutuel betting at a dog race meeting on races run thereat shall
29 distribute all sums deposited in any pari-mutuel pool to the
30 holders of winning tickets therein, provided such tickets be
19770H0313B0333 - 23 -
1 presented for payment before April 1 of the year following the
2 year of their purchase, less 15% of the total deposits plus the
3 breaks. At the close of each racing day, the permit holder out
4 of the amount retained on said day by said permit holder, shall
5 pay, through the Department of Revenue into the State Treasury
6 for credit to the State Dog Racing Fund, a tax of 5% of the
7 amount wagered each day, which tax is hereby imposed. In
8 addition, each permit holder shall be allowed to retain the odd
9 cents of all redistribution to be made on all mutuel
10 contributions exceeding a sum equal to the next lowest multiple
11 of ten, subject to a tax of 50% of the total sum of such odd
12 cents, which tax is hereby imposed and shall be paid by the
13 permit holder at the close of each racing day to the Department
14 of Revenue for credit to the State Dog Racing Fund.
15 Section 18. Disposition and appropriation of funds accruing
16 under the provisions of this act.
17 (a) State Dog Racing Fund.--All moneys paid into the State
18 Treasury under the provisions of this act shall be paid into a
19 special fund hereby created and to be known as the State Dog
20 Racing Fund.
21 (b) Appropriations from fund.--As much as may be necessary
22 of such moneys is hereby appropriated to pay:
23 (1) The salaries of employees of the commission employed
24 by or for it in accordance with the provisions of the act of
25 April 9, 1929 (P.L.177, No.175), known as "The Administrative
26 Code of 1929," and its amendments.
27 (2) The payment of the compensation of employees of the
28 Department of Revenue when used in collecting taxes and
29 penalties imposed by this act.
30 (3) To pay all other expenses incurred by the commission
19770H0313B0333 - 24 -
1 in administering this act.
2 (c) Disposition of remaining funds. The balance of all
3 moneys remaining in the State Dog Racing Fund and not required
4 for payments under subsection (b) shall be paid into the General
5 Fund and used for the payment of costs of paid prescriptions for
6 senior citizens.
7 Section 19. Revocation of license.
8 The State Dog Racing Commission may revoke or suspend a
9 license for the conduct of dog race meetings at which pari-
10 mutuel betting is conducted:
11 (1) for any cause which would permit or require its
12 refusal to issue a license; or
13 (2) if it shall determine that the corporation, to which
14 such license shall have been issued, or its officers or
15 directors fail to conduct racing at its track, including
16 pari-mutuel betting on the races thereat, in accordance with
17 the terms and conditions of such license, the rules of such
18 commission or of the Department of Revenue, or the provisions
19 of this act, or if such corporation or its officers or
20 directors shall knowingly permit on its grounds or within the
21 enclosure of its race track, lotteries, pool selling or
22 bookmaking, or any other kind of gambling, in violation of
23 this act or of Title 18 of the Pennsylvania Consolidated
24 Statutes (relating to crimes and offenses).
25 Section 20. Hearing of refusal or revocation of license.
26 If the State Dog Racing Commission shall refuse to grant a
27 license applied for under this act, or shall revoke or suspend
28 such a license granted by it, the applicant or licensee may
29 demand, within ten days after notice of the said act of the
30 commission, a hearing before the commission and the commission
19770H0313B0333 - 25 -
1 shall give prompt notice of a time and place for such hearing at
2 which the commission will hear such applicant or licensee in
3 reference thereto. Pending such a hearing and final
4 determination thereon, the action of the commission in refusing
5 to grant or in revoking or suspending a license shall remain in
6 full force and effect. The commission may continue such hearing
7 from time to time for the convenience of any of the parties. Any
8 of the parties affected by such hearing may be represented by
9 counsel, and the commission shall be represented by the Attorney
10 General, or a deputy attorney general. In the conduct of such
11 hearing, the commission shall not be bound by technical rules of
12 evidence, but all evidence offered before the commission shall
13 be reduced to writing, and such evidence, together with the
14 exhibits, if any, and the findings of the commission shall be
15 permanently preserved and shall constitute the record of the
16 commission in such case. In connection with such hearing, the
17 commission shall have the power to administer oaths and examine
18 witnesses, and may issue subpoenas to compel attendance of
19 witnesses, and the production of all material and relevant
20 reports, books, papers, documents, correspondence and other
21 evidence. The commission may, if occasion shall require, by
22 order, refer to one or more of its officers the duty of taking
23 testimony in such matter, and to report thereon to the
24 commission, but no determination shall be made therein except by
25 the commission. Within 30 days after the conclusion of such
26 hearing, the commission shall make a final order in writing,
27 setting forth the reasons for the action taken by it and a copy
28 thereof shall be served on such applicant or licensee, as the
29 case may be. The action of the commission in refusing to grant a
30 license or in revoking or suspending a license shall be
19770H0313B0333 - 26 -
1 reviewable by the Commonwealth Court as provided in the act of
2 June 4, 1945 (P.L.1388, No.442), known as the "Administrative
3 Agency Law."
4 Section 21. Approval of plans of corporation.
5 The State Dog Racing Commission shall not grant to a
6 corporation hereafter formed pursuant to this act a license to
7 conduct a dog race meeting at which pari-mutuel betting may be
8 conducted within the State, until such corporation shall have
9 submitted to the commission a statement of the location of tis
10 proposed grounds and race track, together with a plan of such
11 track and plans of all buildings, seating stands, and other
12 structures, in such form as the commission may prescribe, and
13 such plans shall have been approved by the commission.
14 Section 22. Prohibition of wagering by certain officials,
15 employees and minors; prohibition of attendance by
16 minors.
17 No commissioner, secretary, deputy, officer, representative,
18 employee or counsel of the commission shall bet upon the outcome
19 of any dog race conducted at a track at which pari-mutuel
20 betting is conducted by any licensee of the commission, and no
21 corporation which is licensed under this act shall permit any
22 person who is actually and apparently under 18 years of age to
23 bet at or attend a dog race meeting conducted by it. This
24 section shall not be construed to prohibit persons under 18
25 years of age, who are legally employed, from being in and upon
26 the race track premises for the purpose solely of engaging in
27 the performance of their duties as employees. The State Dog
28 Racing Commission shall, by rule, provide for enforcement of
29 this section.
30 Section 23. Free passes, cards, or badges.
19770H0313B0333 - 27 -
1 A corporation licensed to conduct pari-mutuel betting on dog
2 races run at its race track shall not issue free passes, cards,
3 or badges except to persons hereafter described: Officers and
4 employees of the corporation conducting the race meeting;
5 members, officers and employees of the State Dog Racing
6 Commission, members of dog racing associations of other states
7 and foreign counties; public officers engaged in the performance
8 of their duties; persons actually employed and accredited by the
9 press to attend such meetings; owners, stable managers,
10 trainers, concessionaires, and other persons whose actual duties
11 require their presence at such race track. The issuance of tax-
12 free passes, cards, or badges shall be under the rules and
13 regulations of the State Dog Racing Commission and a list of all
14 persons to whom free passes, cards, or badges are issued shall
15 be filed with the State Dog Racing Commission.
16 Section 24. Employees at dog race meetings.
17 At least 85% of the persons, exclusive of racing officials,
18 employed each day in the operation and conduct of the pari-
19 mutuel betting at dog race meets licensed pursuant to this act,
20 shall be citizens of the United States of America and residents
21 of the State of Pennsylvania for at least two years immediately
22 prior to the commencement of such employment in the operation
23 and conduct of pari-mutuel betting at dog race meets, and each
24 employee shall be required to execute and submit, to the
25 corporation by which he is employed, a duly verified affidavit
26 setting forth his qualifications for employment pursuant to the
27 provisions of this section.
28 Section 25. Effective date.
29 This act shall take effect immediately.
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