PRINTER'S NO. 974
No. 867 Session of 1977
INTRODUCED BY RHODES, BRUNNER, ZEARFOSS, BENNETT,
A. K. HUTCHINSON, O'KEEFE, BROWN, MILLIRON, COHEN, ANDERSON,
AND SPENCER, MARCH 30, 1977
REFERRED TO COMMITTEE ON FINANCE, MARCH 30, 1977
AN ACT
1 Creating the Pennsylvania Wagering and Racing Commission;
2 defining the jurisdiction of the commission; imposing powers
3 and duties thereon; providing for and regulating harness
4 racing and thoroughbred horse racing with pari-mutuel
5 wagering on the results thereof; providing for the
6 establishment and operation of harness plants and
7 thoroughbred horse racing plants subject to local option;
8 imposing taxes on the revenues of such plants; disposing of
9 all moneys received by the commission and all moneys
10 collected from taxes; further providing for a State lottery
11 and bingo and the administration thereof; exempting the
12 prizes of the State Lottery from certain State and local
13 taxation; providing for the disposition of funds; and
14 authorizing the imposition of penalties for violations.
15 TABLE OF CONTENTS
16 Chapter 1. General Provisions
17 Section 101. Short title.
18 Section 102. Definitions.
19 Section 103. Establishment of commission.
20 Section 104. Qualifications of commissioners.
21 Section 105. Commission chairman and quorum.
22 Section 106. Commission vacancies.
23 Section 107. Broad powers of the commission.
1 Section 108. Commission powers under "The Administrative
2 Code of 1929."
3 Section 109. Commission secretary.
4 Section 110. Bureau organization.
5 Section 111. Appropriation.
6 Section 112. Annual reports.
7 Chapter 2. (Reserved)
8 Chapter 3. Pari-mutuel Horse Racing
9 Subchapter A. Licenses and Commission Powers
10 Section 301. Jurisdiction over pari-mutuel horse racing.
11 Section 302. Commission powers relating to pari-mutuel horse
12 racing.
13 Section 303. Incorporation for pari-mutuel horse racing
14 purposes.
15 Section 304. Information concerning stock transfer and
16 commission approval.
17 Section 305. Pari-mutuel betting at races.
18 Section 306. State admission tax at pari-mutuel races.
19 Section 307. Licenses for pari-mutuel horse races.
20 Section 308. Shareholders of pari-mutuel horse racing
21 corporation stock.
22 Section 309. Prohibition of interest by certain individuals
23 in pari-mutuel horse racing activities.
24 Section 310. Officials at pari-mutuel horse race meetings.
25 Section 311. License for participants and employees at
26 pari-mutuel horse race meetings.
27 Section 312. Power to impose fines and penalties for
28 pari-mutuel horse race violations.
29 Section 313. Security personnel for pari-mutuel horse races.
30 Section 314. Refunds.
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1 Section 315. Place and manner of conducting horse race
2 pari-mutuel betting.
3 Section 316. Books and records of horse race pari-mutuel
4 betting.
5 Section 317. Filing of certain racing agreements.
6 Section 318. Commission power to revoke pari-mutuel horse
7 racing license.
8 Section 319. Hearing of refusal or revocation of pari-
9 mutuel horse racing license.
10 Section 320. Approval of plans of a pari-mutuel horse racing
11 corporation.
12 Section 321. Local option for harness racing license.
13 Section 322. Wagering and attendance at pari-mutuel horse
14 races prohibited for certain individuals.
15 Section 323. Free passes, cards or badges.
16 Section 324. Political subdivision agricultural fairs and
17 horse race meetings not licensed to conduct
18 pari-mutuel betting.
19 Section 325. Employees at pari-mutuel horse race meetings.
20 Subchapter B. Appropriations and Dispositions of Funds
21 Section 350. Disposition of harness racing pari-mutuel
22 pools.
23 Section 351. Disposition of State harness racing funds.
24 Section 352. Appropriation of certain harness racing funds
25 to the Department of Commerce.
26 Section 353. Additional appropriations.
27 Section 354. Moneys to General Fund.
28 Section 355. Pennsylvania Fair Fund.
29 Section 356. Certain excess for agricultural research.
30 Section 357. Research subcommittees.
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1 Section 358. Reduction of payments.
2 Section 359. Distribution of excess.
3 Section 360. Forms prescribed.
4 Section 361. Disposition of thoroughbred horse racing pari-
5 mutuel pools.
6 Section 362. Pennsylvania Breeding Fund.
7 Section 363. Disposition and appropriation of State Horse
8 Racing Fund.
9 Chapter 4. (Reserved)
10 Chapter 5. State Lottery and Bingo
11 Subchapter A. State Lottery
12 Section 501. Statement of purpose.
13 Section 502. Powers and duties of commission with respect to
14 the State lottery.
15 Section 503. Lottery sales agents.
16 Section 504. Assignability of prizes drawn.
17 Section 505. Prohibition relating to ticket sales.
18 Section 506. Persons excluded from lottery participation.
19 Section 507. Other laws inapplicable.
20 Section 508. Disposition of funds from sale of tickets.
21 Section 509. Exemption of lottery prizes from certain
22 taxation.
23 Section 510. Unclaimed prize money.
24 Section 511. Bank deposits and control of lottery
25 transactions.
26 Subchapter B. Bingo
27 Section 531. Jurisdiction over bingo.
28 Section 532. Powers and duties relating to bingo activities.
29 Section 533. Groups which may apply for license to conduct
30 bingo.
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1 Section 534. Licenses.
2 Section 535. Prohibitions.
3 Section 536. Exclusive control and management.
4 Section 537. Profits.
5 Section 538. Records and books related to bingo.
6 Section 539. Gross receipts tax.
7 Chapter 6 (Reserved)
8 Chapter 7 (Reserved)
9 Chapter 8 (Reserved)
10 Chapter 9 (Reserved)
11 Chapter 10. Miscellaneous
12 Subchapter A. Administrative Changes
13 Section 1001. Transfers.
14 Subchapter B. Repeals and Effective Date
15 Section 1021. Repeals.
16 Section 1022. Effective date.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 CHAPTER 1
20 GENERAL PROVISIONS
21 Section 101. Short title.
22 This act shall be known and may be cited as the "Wagering and
23 Racing Code."
24 Section 102. Definitions.
25 The following words and phrases when used in this act shall
26 have, unless the context clearly indicates otherwise, the
27 meanings given to them in this section:
28 "Bureau." One of at least three mandatory subdivisions of
29 the commission to be organized to perform the daily activities
30 of the commission in relation to the legalized forms of gaming.
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1 "Commission." The Pennsylvania Wagering and Racing
2 Commission created pursuant to the provisions of section 103.
3 "Harness racing." The sport of racing standardbred horses
4 harnessed to two-wheeled sulkies.
5 "Lottery" or "State lottery." The lottery established and
6 operated pursuant to Chapter 5.
7 "Pari-mutuel horse racing." For purposes of this act the
8 term shall mean either harness racing or thoroughbred horse
9 racing.
10 "Thoroughbred horse racing." That form of horse racing in
11 which each participating horse is mounted by a jockey, is duly
12 registered with the Jockey Club, New York, New York and engages
13 in races on the flat. The term shall not include a steeplechase
14 or hurdle race.
15 Section 103. Establishment of commission.
16 An independent administrative commission to be known as the
17 "Pennsylvania Wagering and Racing Commission " is hereby
18 created. The commission shall consist of five members to be
19 appointed by the Governor by and with the advice and consent of
20 two-thirds of all members of the Senate. Of the original
21 members, two shall be appointed for a term of two years, two for
22 a term of four years, and one for a term of six years from the
23 date of his appointment and until his successor shall have been
24 appointed and qualified. Thereafter, all appointments shall be
25 for terms of six years or until successors are appointed and
26 qualified. Each member of the commission shall receive a salary
27 of $25,000 per year and the chairman of the commission shall
28 receive a salary of $26,000 per year.
29 Section 104. Qualifications of commissioners.
30 (a) General qualifications.--Each member of the commission
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1 at the time of his appointment and qualification shall be a
2 citizen of the United States and a resident of the Commonwealth
3 of Pennsylvania, shall have been a qualified elector in the
4 Commonwealth for a period of at least one year next preceding
5 his appointment, and shall be not less than 30 years of age.
6 (b) Other offices prohibited.--No member of the commission
7 during his period of service as such shall hold any other office
8 under the laws of this Commonwealth or of the United States.
9 Section 105. Commission chairman and quorum.
10 (a) Chairman.--The commission shall elect one of its members
11 as chairman. The chairman shall when present, preside at all
12 meetings, and in his absence a member designated by the chairman
13 shall preside.
14 (b) Quorum of commission.--Three members of the commission
15 shall constitute a quorum, and any action or order of the
16 commission shall require the approval of at least three members.
17 Section 106. Commission vacancies.
18 When a vacancy shall occur in the office of any commissioner,
19 a commissioner shall in the manner provided in section 104 be
20 appointed for the unexpired term.
21 Section 107. Broad powers of the commission.
22 The commission shall have the power:
23 (1) to regulate all forms of gambling made legal by any
24 law of the Commonwealth;
25 (2) to appoint such personnel as it deems necessary to
26 fulfill the duties of the commission;
27 (3) to prescribe the duties of such personnel and to fix
28 compensation within the appropriation available therefor;
29 (4) to determine, as its pleasure, the length of service
30 of such personnel;
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1 (5) to enter into contracts as it deems necessary to
2 carry out its duties;
3 (6) to promulgate such reasonable rules and regulation
4 in furtherance of its duties; and
5 (7) to exercise such other powers and duties as may be
6 provided by law and shall have jurisdiction over all forms of
7 gambling made legal by any law of the Commonwealth.
8 Section 108. Commission powers under "The Administrative Code
9 of 1929."
10 Subject to the provisions of this act or any other act
11 conferring powers and duties on the commission, the commission
12 shall have all the powers, and shall perform the duties
13 generally vested in, and imposed upon, independent
14 administrative boards and commissions by the act of April 9,
15 1929 (P.L.177, No.175), known as "The Administrative Code of
16 1929," and shall be subject to all provisions of such code which
17 apply generally to independent administrative boards and
18 commissions.
19 Section 109. Commission secretary.
20 (a) Appointment and duties of the secretary.--The commission
21 shall appoint and fix the compensation of a full-time secretary.
22 It shall be the duty of the secretary to keep a full and
23 faithful record of the proceedings of such commission, preserve
24 at the general office of such commission all books, maps,
25 documents, and papers entrusted to the secretary's care, prepare
26 for services such papers and notices as may be required by the
27 commission, and perform such other duties as the commission may
28 prescribe.
29 (b) Docket of the secretary.--It shall be the duty of the
30 secretary to keep, at the office of the commission, a docket
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1 setting forth the names of all stockholders in all corporations
2 licensed under Chapter 3, the number of shares held by each such
3 shareholder, and the date on which each shareholder acquired
4 stock in the corporate licensee. Such docket shall be open for
5 public inspection at the offices of the commission during the
6 regular business hours of the commission.
7 Section 110. Bureau organization.
8 The commission shall organize its working staff and employees
9 into three separate bureaus which shall handle the daily
10 activities of the commission in regulating legalized gaming
11 within the Commonwealth of Pennsylvania. One bureau shall work
12 with harness racing matters; one bureau shall work with
13 thoroughbred horse racing; and one bureau shall work with the
14 State lottery and bingo.
15 Section 111. Appropriation.
16 All salaries and expenses of the commission shall be paid
17 from funds specifically appropriated to the commission by the
18 General Assembly for each fiscal year.
19 Section 112. Annual reports.
20 The commission shall make a full report annually to the
21 Governor and the Legislature of its proceedings including all
22 revenues, disbursements, expenses and such recommendations as it
23 deems desirable. The commission shall also report any
24 information at any other time upon request from the Governor or
25 Legislature.
26 CHAPTER 2
27 (Reserved)
28 CHAPTER 3
29 PARI-MUTUEL HORSE RACING
30 SUBCHAPTER A
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1 LICENSES AND COMMISSION POWERS
2 Section 301. Jurisdiction over pari-mutuel horse racing.
3 The commission shall have general jurisdiction over all pari-
4 mutuel horse racing activities in the State and the corporations
5 engaged therein. The commission, or such officers, employees or
6 agents of the commission as may be designated by the commission
7 for such purpose, shall have the power to administer oaths and
8 examine witnesses, and may issue subpoenas to compel attendance
9 of witnesses, and the production of all relevant and material
10 reports, books, papers, documents, correspondence, and other
11 evidence.
12 Section 302. Commission powers relating to pari-mutuel horse
13 racing.
14 (a) General powers.--Pursuant to the provisions of this act,
15 the commission shall have power to supervise generally all pari-
16 mutuel horse race meetings in this State at which pari-mutuel
17 betting is conducted. The commission may adopt rules and
18 regulations not inconsistent with this act to carry into effect
19 its purposes and provisions and to prevent circumvention or
20 evasion thereof. In order that the rules of harness horse racing
21 may be uniform throughout the United States, the commission may
22 adopt the rules and regulations of The United States Trotting
23 Association, in whole or in part, and may adopt such other or
24 different rules as it deems necessary to carry into effect the
25 purposes and provisions of this act.
26 (b) Specific powers.--Without limiting the generality of the
27 foregoing, and in addition to its other powers:
28 (1) The commission shall have power to fix minimum and
29 maximum charges for admission to pari-mutuel horse race
30 meetings at which pari-mutuel betting is conducted, but such
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1 minimum charges shall not be less than 50¢ for general
2 admission, exclusive of taxes: Provided, however, That the
3 commission shall have power to fix the charge for admission
4 of soldiers, sailors, and marines, in uniform, at one-half of
5 the amount fixed for such admission generally under authority
6 of this section, whether or not such one-half of the amount
7 fixed is less than the minimum prescribe therein.
8 (2) The commission shall prescribe rules and regulations
9 for effectually preventing the use of improper devices, the
10 administration of drugs or stimulants, or other improper acts
11 for the purpose of affecting the speed of horses in pari-
12 mutuel races in which they are about to participate.
13 (3) The rules of the commission shall also provide that
14 all winning pari-mutuel tickets must be presented for payment
15 before April 1 of the year following the year of their
16 purchase and failure to present any such ticket within the
17 prescribed period of time shall constitute a waiver of the
18 right to participate in the award or dividend. After April 1
19 of the year following, all licensees will forward to the
20 State Treasurer all funds so held for such uncashed tickets.
21 Section 303. Incorporation for pari-mutuel horse racing
22 purposes.
23 (a) Information for incorporation.--Any number of persons,
24 not less than five, may incorporate for the purpose of conducted
25 pari-mutuel horse race meetings at which pari-mutuel betting
26 will be conducted, with all the general powers of corporations
27 created under the laws of this State, by making, signing,
28 acknowledging and filing with the Department of State a
29 certificate which shall contain:
30 (1) The name of the proposed corporation.
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1 (2) The objects for which it is to be formed and the
2 location at which it is proposed to conduct its business.
3 (3) The amount and description of the capital stock.
4 (4) The location of its principal business office.
5 (5) Its duration, which may be forever.
6 (6) The number of its directors, not less than five nor
7 more than thirteen.
8 (7) The names and post office addresses of the directors
9 for the first year.
10 (8) The post office addresses of the subscribers and a
11 statement of the number of shares of stock which each agrees
12 to take in the corporation.
13 (b) Fees.--Each such certificate shall be accompanied by the
14 fees, bonus and taxes required by law in the case of
15 corporations organized under the act of May 5, 1933 (P.L.364,
16 No.106), known as the "Business Corporation Law."
17 (c) License from commission.--No corporation organized
18 pursuant to this act shall have or be given the right of power
19 to conduct any pari-mutuel horse race meet pursuant to this act,
20 except on obtaining a license from the commission and at the
21 location designated in its certificate of incorporation as the
22 place at which it was proposed to conduct its business:
23 Provided, however, That this restriction shall not apply to any
24 such corporation whose racing plant or the usefulness thereof or
25 of any material part thereof, in the discretion of the
26 commission, shall, for any reason beyond the control of such
27 corporation, be totally destroyed or so substantially interfered
28 with or damaged as to render same unfit for continued operation.
29 Pending the rebuilding or restoration of its usefulness, or the
30 making of the required repairs to said plant or the part thereof
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1 so destroyed or damaged, the commission may license such
2 corporation to conduct its pari-mutuel horse race meetings at
3 any other suitable location in the same county or in any other
4 county in which a horse racing plant may be located.
5 Section 304. Information concerning stock transfer and
6 commission approval.
7 (a) Information to be filed with corporation.--Whenever a
8 transfer of stock of any corporation which is licensed under
9 this act, or of any corporation which leases to such licensee
10 the track at which it conducts pari-mutuel horse races or which
11 owns 25% or more of the stock of such licensee shall be made,
12 there shall be filed, simultaneously, with the corporation which
13 issued such stock the following:
14 (1) in duplicate, an affidavit executed by the
15 transferee stating that he is to be the sole beneficial owner
16 thereof, and whether or not he:
17 (i) has been convicted of a crime involving moral
18 turpitude;
19 (ii) has been engaged in bookmaking or other forms
20 of illegal gambling;
21 (iii) has been found guilty of any fraud or
22 misrepresentation in connection with racing or breeding;
23 (iv) has been guilty of any violation or attempt to
24 violate any law, rule or regulation of any racing
25 jurisdiction, for which suspension from racing might be
26 imposed in such jurisdiction; or
27 (v) has violated any rule, regulation or order of
28 the commission. If the transferee is not, or is not to
29 be, the sole beneficial owner thereof, then there shall
30 be annexed to said affidavit of the transferee, and
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1 expressly stated in such affidavit to be deemed a part
2 thereof, a true and complete copy of all terms of the
3 agreement pursuant to which the stock is to be so held by
4 the transferee, including a detailed statement of the
5 interest therein of each person who is to have any
6 interest therein; and
7 (2) in duplicate, an affidavit executed by each person
8 for whom the said stock, or any interest therein, is to be
9 held by said transferee, setting forth whether or not the
10 affiant:
11 (i) has been convicted of a crime involving moral
12 turpitude;
13 (ii) has engaged in bookmaking or other forms of
14 illegal gambling;
15 (iii) has been found guilty of any fraud or
16 misrepresentation in connection with racing or breeding;
17 (iv) has been guilty of any violation or attempt to
18 violate any law, rule or regulation of any racing
19 jurisdiction, for which suspension from racing might be
20 imposed in such jurisdiction; or
21 (v) has violated any rule, regulation or order of
22 the commission. To each of such affidavits shall be
23 annexed, and expressly stated in such affidavit to be
24 deemed a part thereof, a true and complete copy of all
25 the terms of the agreement pursuant to which stock is to
26 be so held by the transferee, including a detailed
27 statement of the interest therein of each person who is
28 to have any interest therein. Said corporation shall
29 forthwith file with the commission one of each of said
30 duplicate affidavits.
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1 (b) Additional information in certain circumstances.--If,
2 after the filing of any affidavit hereinabove required to be
3 filed, there shall be any change in the status of any such
4 affiant with respect to any of the matters set forth in
5 subsection (a)(1) of the affidavit theretofore filed by him,
6 such affiant shall forthwith file with the corporation with
7 which his affidavit was so filed a new affidavit, executed by
8 him in duplicate, setting forth such change of status, and the
9 corporation shall forthwith file one of said affidavits with the
10 commission.
11 (c) Filing with commission.--Whenever any change shall be
12 made in the amount, nature, or otherwise, of the interest of any
13 person having an interest in stock of any such corporation, or
14 any new interest shall be created therein, without a transfer
15 thereof as hereinabove provided, the record owner of such stock,
16 and each person whose interest therein has been so attempted to
17 be changed or created, shall file with the corporation which
18 issued such stock, in duplicate, affidavits as provided by
19 subsection (a)(1) and (2), except that such affidavits need not
20 include the matter referred to in subsection (a) unless then
21 required pursuant to subsection (b), and one copy thereof shall
22 forthwith be filed by the corporation with the commission.
23 (d) Commission order to dispose of stock.--If the commission
24 determines that it is inconsistent with the public interest,
25 convenience, or necessity, or with the best interest of racing
26 generally, that any person continue to be a stockholder of
27 record, or the beneficial owner of any interest in stock
28 standing in the name of another in any corporation licensed
29 under this act, or of any corporation which leases to such
30 licensee the track at which it conducts pari-mutuel horse racing
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1 or which owned 25% or more of the stock of such licensee, the
2 commission shall have full power and authority to order or
3 direct each such stockholder or beneficial owner to dispose of
4 his stock or interest therein within a period of time to be
5 specified by the commission, which period the commission shall
6 have full power and authority to extend from time to time.
7 (e) Appeal of commission disposal order.--If the commission
8 shall make any order or direction as provided in subsection (d),
9 the person aggrieved thereby shall be given notice of the time
10 and place of a hearing before the commission, at which the
11 commission will hear such person in reference thereto. The
12 action of the commission in making any such order or direction
13 shall be reviewable in the Commonwealth Court.
14 Section 305. Pari-mutuel betting at races.
15 No more than five corporations shall be licensed by the
16 commission in any one year to conduct a pari-mutuel harness race
17 meet or meets. No more than six corporations shall be licensed
18 by the commission in any one year to conduct a pari-mutuel
19 thoroughbred horse race meet or meetings. No corporation
20 licensed to conduct a pari-mutuel harness race meet shall be
21 licensed to conduct a pari-mutuel thoroughbred horse race meet.
22 No corporation licensed to a pari-mutuel thoroughbred horse race
23 meet shall be licensed to conduct a pari-mutuel harness race
24 meet. No corporation shall be licensed to conduct pari-mutuel
25 horse racing for more than 100 days in any calendar year. The
26 pari-mutuel betting conducted at such meeting shall be under the
27 general supervision and control of the commission which shall
28 make rules regulating the conduct of such pari-mutuel betting in
29 accordance with the provisions of this act. The Department of
30 Revenue is charged with the financial administration of pari-
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1 mutuel betting as prescribed in this act and as supplemented by
2 the rules and regulations of the commission. The Department of
3 Revenue shall have authority to prescribe the forms and the
4 system of accounting to be employed, and through its
5 representatives shall, at all times, have power of access to,
6 and examination of, any equipment relating to such betting.
7 Section 306. State admission tax at pari-mutuel races.
8 (a) Corporation licensed for harness races to collect tax.--
9 Every corporation holding a harness horse race meeting pursuant
10 to this act shall collect, in addition to the admission price of
11 tickets sold or otherwise disposed of, for each such meeting
12 held by such corporation, a tax equivalent to 5% of such
13 admission price, which tax is hereby imposed. In case of failure
14 to collect such tax, the same shall be imposed upon the
15 corporation holding the race meeting. Such tax shall be paid to
16 the Department of Revenue within ten days after the close of
17 each such race meeting. The amounts so collected shall be paid
18 into the State Treasury to the credit of the State Harness
19 Racing Fund. Before any corporation liable to pay the tax hereby
20 imposed shall hold any race meeting, or exercise any of the
21 powers conferred by this act, it or he shall pay all taxes
22 theretofore due, and shall file a statement with the Department
23 of Revenue containing the name of the place and stating the time
24 when such races are to be held. Nothing in this section shall
25 apply to a race meeting conducted by any State, county, or other
26 agricultural association.
27 (b) Corporation licensed for thoroughbred horse races to
28 collect tax.--Every corporation holding a thoroughbred horse
29 race meeting pursuant to this act shall collect, in addition to
30 the admission price of tickets sold or otherwise disposed of,
19770H0867B0974 - 17 -
1 for each such meeting held by such corporation, a tax equivalent
2 to 15% of such admission price, or 15¢ whichever is greater,
3 which tax is hereby imposed. In case of failure to collect such
4 tax, the same shall be imposed upon the corporation holding the
5 race meeting. Such tax shall be paid to the Department of
6 Revenue within ten days of collection. The amounts so collected
7 shall be paid into the State Treasury to the credit of the State
8 Horse Racing Fund. Before any corporation liable to pay the tax
9 hereby imposed shall hold any race meeting, or exercise any of
10 the powers conferred by this act, it or he shall pay all taxes
11 theretofore due, and shall file a statement with the Department
12 of Revenue containing the name of the place and stating the time
13 when such races are to be held. Nothing in this section shall
14 apply to a race meeting conducted by any state, county, or other
15 agricultural association.
16 (c) Department of Revenue powers relating to the State
17 admission tax.--The Department of Revenue shall have the power
18 to examine, or cause to be examined, the books and records of
19 the corporation so conducting any such pari-mutuel horse horse
20 race meeting, and may hear testimony and take proofs and
21 material for its information therefrom, or from any other data
22 which shall be satisfactory to it, the Department of Revenue may
23 order and state an account for the tax due the State, together
24 with the expense of such examination. A penalty of 5% and
25 interest at the rate of 1% per month from the due date to the
26 date of payment of the tax shall be payable in case any tax
27 imposed by this section is not paid when due.
28 Section 307. Licenses for pari-mutuel horse races.
29 (a) Commission to issue licenses.--Any corporation desiring
30 to conduct pari-mutuel horse race meetings at which pari-mutuel
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1 betting shall be permitted may apply to the commission for a
2 license to do so. If, in the judgment of the commission, the
3 public interest, convenience or necessity will be served thereby
4 and a proper case for the issuance of such license is shown
5 consistent with the purposes of this act and the best interest
6 of racing generally, it may grant such license for a term ending
7 not later than December 31, next succeeding the granting
8 thereof, specifying dates and hours during which, and the place
9 where, the licensee may operate. Any license so issued may be
10 renewed upon application.
11 (b) Conditions for pari-mutuel horse race licenses.--Every
12 such license shall be issued upon condition:
13 (1) that every pari-mutuel horse race meeting at which
14 pari-mutuel betting is conducted shall be subject to the
15 supervision of and to the reasonable rules and regulations
16 from time to time prescribed by the commission; and
17 (2) that pari-mutuel betting conducted thereunder shall
18 also be subject to the supervision of and to the reasonable
19 regulations from time to time prescribed by the Department of
20 Revenue. Any such license may also be issued upon any other
21 condition that the commission shall determine to be necessary
22 or desirable to insure that the public interest, convenience
23 or necessity is served.
24 (c) Form of application.--Applications for licenses shall be
25 in such form as may be prescribed by the commission and shall
26 contain such information or other material or evidence as the
27 commission may require. The term "racing week" shall include
28 Sunday, at the discretion of the licensee but no racing shall be
29 authorized or permitted on that day before 1 p.m.
30 (d) Additional considerations for licenses.--In considering
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1 an application for a license under this section, the commission
2 may give consideration to the number of licenses already
3 granted. No such license shall be granted to any track located
4 within ten miles of a State, county or other political
5 subdivision fair conducting horse racing unless the association,
6 corporation, society, political subdivision or State agency
7 conducting such fair shall affirmatively waive objection to the
8 issuance of such license for dates within such period.
9 (e) Refusal of license.--The commission may refuse to grant
10 a license to a corporation, if it shall determine that:
11 (1) Any officer, director, member or stockholder of such
12 corporation applying for a license or of any corporation
13 which owns stock in or shares in the profits, or participates
14 in the management of the affairs of such applicant, or which
15 leases to such applicant the track where it shall operate:
16 (i) has been convicted of a crime involving moral
17 turpitude;
18 (ii) has engaged in bookmaking or other forms of
19 illegal gambling;
20 (iii) has been found guilty of any fraud or
21 misrepresentation in connection with racing or breeding;
22 (iv) has been guilty of any violation or attempt to
23 violate any law, rule or regulation of any racing
24 jurisdiction, for which suspension from racing might be
25 imposed in such jurisdiction; or
26 (v) has violated any rule, regulation or order of
27 the commission.
28 (2) The experience, character, or general fitness of any
29 officer, director, or stockholder of any of the aforesaid
30 corporations is such that the participation of such person in
19770H0867B0974 - 20 -
1 pari-mutuel horse racing or related activities would be
2 inconsistent with the public interest, convenience or
3 necessity or with the best interests of racing generally, but
4 if the commission determines that the interest of any
5 stockholder referred to in this paragraph or in paragraph (1)
6 is sufficient, in the opinion of the commission, to affect
7 adversely the conduct of pari-mutuel horse racing by such
8 corporation in accordance with the provisions of this act,
9 the commission may disregard such interest in determining
10 whether or not to grant a license to such corporation.
11 (3) The applicant is not the owner or lessee of the
12 track at which it will conduct pari-mutuel horse racing
13 pursuant to the license applied for, or that any person,
14 firm, association, or corporation other than the applicant
15 shares, or will share, in the profits of the applicant, other
16 than by dividends as a stockholder, or participates, or will
17 participate, in the management of the affairs of the
18 applicant.
19 (f) Additional grounds for license refusal.--The commission
20 shall also have power to refuse to grant a license:
21 (1) To any corporation, the charter or certificate of
22 incorporation of which shall fail to contain a provision
23 requiring any stockholder, upon written demand of the
24 corporation, to sell his stock to the corporation at a price
25 to be fixed by the commission, provided such demand be made
26 pursuant to written direction of the commission, and from and
27 after the date of the making of such demand prohibiting the
28 transfer of such certificate of stock except to the
29 corporation.
30 (2) To any corporation which, having been a licensee,
19770H0867B0974 - 21 -
1 has failed, in the opinion of the commission, to properly
2 maintain its track and plant in good condition or has failed
3 to make adequate provision for rehabilitation and capital
4 improvements to its track and plant.
5 (g) Temporary licenses.--Pending final determination of any
6 question under this section, the commission may issue a
7 temporary license upon such terms and conditions as it may deem
8 necessary, desirable or proper to effectuate the provisions of
9 this act.
10 (h) Transfer information.--The commission shall have power
11 to direct that every certificate of stock of a corporation
12 licensed under the provisions of this act shall bear a legend,
13 plainly and prominently imprinted upon the face of the
14 certificate, reading: "This certificate of stock is transferable
15 only subject to the provisions of the 'Wagering and Racing
16 Code'."
17 Section 308. Shareholders of pari-mutuel horse racing
18 corporation stock.
19 (a) Licensee to provide commission with stockholder list.--
20 Each licensee shall provide the commission with a complete list
21 of all its stockholders, indicating the number of shares held by
22 each shareholder.
23 (b) Notice of stock transfer to commission.--It shall be the
24 duty of each licensee, within ten days after any transfer of
25 stock in such licensee, to notify the commission of such
26 transfer.
27 (c) Stock to carry certain information.--Each certificate of
28 stock issued by a licensee shall have noted on the face thereof
29 that the person whose name is indicated as the owner of the
30 shares of stock represented by such certificate is the sole and
19770H0867B0974 - 22 -
1 absolute owner thereof, and that he is not holding the shares of
2 stock or any portion of the shares of stock represented by said
3 certificate in trust for any person, partnership, firm or
4 corporation whatsoever, who or which is prohibited by this act
5 from owning such shares of stock. If any of the shares of stock
6 represented by a certificate of stock are held subject to the
7 terms of either an inter vivos or testamentary trust for the
8 benefit of any person who could lawfully own such stock in his
9 own name, such fact shall be so noted on the face of the
10 certificate and a copy of the instrument which created the trust
11 shall be attached thereto. A duplicate copy of the instrument
12 which created the trust shall be filed with the commission.
13 (d) Limitation on property rights in stock.--No property
14 rights shall exist in any shares of stock of any licensee which
15 are held in trust contrary to the provisions of this section and
16 the same shall be forfeited to the Commonwealth of Pennsylvania,
17 after reasonable notice, and upon hearing and proof thereof in
18 any suit instituted by the Attorney General of Pennsylvania in
19 the Commonwealth Court. Upon it being established that such
20 stock is subject to forfeiture by legal adjudication as herein
21 provided, the commission shall sell such forfeited stock, at
22 public sale, upon proper notice, to the highest public bidder.
23 The proceeds from such sale shall be deposited in the General
24 Fund of the Commonwealth of Pennsylvania.
25 (e) Definition of licensee.--"Licensee" means any
26 association or corporation which holds any license from the
27 commission, or any firm, association or corporation which owns
28 or leases to any licensed association or corporation a race
29 track at which pari-mutuel racing is conducted, or any firm,
30 association or corporation which participates in the management
19770H0867B0974 - 23 -
1 of any association or corporation which holds any license from
2 the commission.
3 (f) Additional applicability.--The provisions of this
4 section shall be in effect in addition to the provisions of
5 section 304.
6 Section 309. Prohibition of interest by certain individuals in
7 pari-mutuel horse racing activities.
8 (a) Definitions.--As used in this section, the following
9 terms shall mean and include:
10 "Party officer." The following members or officers of any
11 political party:
12 (i) a member of a National committee;
13 (ii) a chairman, vice-chairman, secretary, treasurer
14 or counsel of a State committee or member of the
15 executive committee of a State committee;
16 (iii) a county chairman, vice-chairman, counsel,
17 secretary or treasurer of a county committee;
18 (iv) a city chairman, vice-chairman, counsel,
19 secretary 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 (b) Prohibition of interest.--No public officer, public
25 employee or party officer shall:
26 (1) hold any license from the commission;
27 (2) own or hold, directly or indirectly, any proprietary
28 interest, stock or obligation of any firm, association or
29 corporation:
30 (i) which is licensed by such commission to conduct
19770H0867B0974 - 24 -
1 pari-mutuel horse racing;
2 (ii) which is licensed to conduct its occupation,
3 trade or business at race tracks at which pari-mutuel
4 horse race meets are conducted;
5 (iii) which owns or leases to any licensed
6 association or corporation a race track at which pari-
7 mutuel horse racing is conducted;
8 (iv) which participates in the management of any
9 licensee conducting pari-mutuel horse racing; or
10 (3) hold any office or employment with any firm,
11 association or corporation specified in paragraph (2); or
12 (4) sell (or be a member of a firm or own 10% or more of
13 the stock of any corporation which sells) any goods or
14 services to any firm, association or corporation specified in
15 paragraph (2).
16 The provisions of subsection (b)(3) shall not apply to a
17 public employee of a political subdivision (other than a police
18 officer or paid employee of a police department, sheriff's
19 office, district attorney's office or other law enforcement
20 agency): Provided, however, That such employment of employees of
21 a political subdivision may be prohibited by ordinance,
22 resolution or local law adopted by the local legislative body or
23 other governing board of such political subdivision.
24 (c) Removal from office for violations.--Notwithstanding any
25 other provision of law and in addition to any other cause of
26 removal provided by law, a knowing and willful violation of this
27 section shall be cause for removal from public office, public
28 employment or party office. In any such case, such public
29 officer, public employee or party officer, violating this
30 section, shall be removed from office by appropriate authority
19770H0867B0974 - 25 -
1 having the power of removal or at the suit of the Attorney
2 General.
3 (d) Present owner exemption.--A public officer, public
4 employee or party officer who owns or holds, directly or
5 indirectly, any proprietary interest, stock or obligation
6 prohibited by subsection (b) as of the effective date of this
7 act shall not be in violation of this section if such interest
8 or obligation is disposed of within one year from the date this
9 act takes effect.
10 (e) Certain ownership permitted.--The provisions of this
11 section shall nevertheless allow any person other than members,
12 employees or appointees of the commission to own and to be
13 licensed to race a race horse at any licensed race track.
14 (f) Power of commission over licensee for violations.--The
15 commission shall have the power to refuse to grant or to revoke
16 or suspend a license of any firm, association or corporation
17 which aids or knowingly permits or conspires to permit any
18 public officer, public employee or party officer to acquire or
19 retain any interest prohibited by this section.
20 Section 310. Officials at pari-mutuel horse race meetings.
21 At all pari-mutuel horse race meetings licensed by the
22 commission in accordance with the provisions of this act,
23 qualified stewards, judges and starters shall be approved by the
24 commission. No person shall be approved as a judge or starter
25 for pari-mutuel harness racing purposes unless he shall be
26 licensed by The United States Trotting Association as a duly
27 qualified pari-mutuel race meeting official. Such officials
28 shall enforce the rules and regulations of the commission and
29 shall render regular written reports of the activities and
30 conduct of such race meetings to the commission. The
19770H0867B0974 - 26 -
1 compensation of such judges and starters shall be fixed by the
2 commission and paid by the corporation conducting such race
3 meeting.
4 Section 311. License for participants and employees at pari-
5 mutuel horse race meetings.
6 (a) Power to license certain individuals for harness
7 races.--For the purpose of maintaining a proper control over
8 harness race meetings conducted pursuant to this act, the
9 commission may license drivers and such other persons
10 participating in harness horse race meets, as the commission may
11 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 harness race meets. The
14 commission may, by rule, fix the license fees to be paid by
15 persons or corporations so licensed: Provided, That such
16 occupational license fees so fixed shall not exceed $5, which
17 fee 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 Harness Racing Fund. All such licenses, unless revoked
20 for cause, shall be valid for the calendar year during which
21 such license shall have been issued. The application shall be in
22 such form and contain such information as the commission may
23 require.
24 (b) Power to license certain individuals for thoroughbred
25 horse races.--For the purpose of maintaining a proper control
26 over thoroughbred horse race meetings conducted pursuant to this
27 act, the commission may license trainers, jockeys and such other
28 persons participating in thoroughbred horse race meets, as the
29 commission may by rule prescribe, including, if the commission
30 deems it necessary to do so, owners and some or all persons
19770H0867B0974 - 27 -
1 exercising their occupation or employed at thoroughbred horse
2 race meets. The commission may, by rule, fix the license fees to
3 be paid by persons or corporations so licensed: Provided, That
4 such occupational license fees so fixed shall not exceed $5,
5 which fees shall be paid to the commission and by it paid into
6 the State Treasury through the Department of Revenue and
7 credited to the State Horse Racing Fund. All such licenses
8 unless revoked for cause, shall be for the period ending
9 December 31 of the year in which the same shall be issued. The
10 application shall be in such form and contain such information
11 as the commission may require.
12 (c) Standards.--If the commission shall find that the
13 experience, character, and general fitness of the applicant are
14 such that the participation of such person in harness horse race
15 meets will be consistent with the public interest, convenience
16 and necessity, and with the best interests of racing generally
17 in conformity with the purposes of this act, it may thereupon
18 grant a license.
19 (d) Refusal to license certain individuals.--Without
20 limiting the generality of the foregoing, the commission may
21 refuse to issue a license pursuant to this section, if it shall
22 fine that the applicant:
23 (1) Has been convicted of a crime involving moral
24 turpitude.
25 (2) Has engaged in bookmaking or other form of illegal
26 gambling.
27 (3) Has been found guilty of any fraud or
28 misrepresentation in connection with racing, or breeding.
29 (4) Has been found guilty of any violation or attempt to
30 violate any law, rule or regulation of racing in any
19770H0867B0974 - 28 -
1 jurisdiction, for which suspension from racing might be
2 imposed in such jurisdiction.
3 (5) Has violated any rule, regulation or order of the
4 commission.
5 (e) Suspension or revocation of license.--The commission may
6 suspend or revoke a license issued pursuant to this section, if
7 it shall determine that:
8 (1) The applicant or licensee:
9 (i) has been convicted of a crime involving moral
10 turpitude;
11 (ii) has engaged in bookmaking or other form of
12 illegal gambling;
13 (iii) has been found guilty of any fraud in
14 connection with racing or breeding;
15 (iv) has been guilty of any violation or attempt to
16 violate any law, rule or regulation of any racing
17 jurisdiction, for which suspension from racing might be
18 imposed in such jurisdiction; or
19 (v) who has violated any rule, regulation or order
20 of the commission.
21 (2) That the experience, character, or general fitness
22 of any applicant or licensee is such that the participation
23 of such person in harness racing or related activities would
24 be inconsistent with the public interest, convenience or
25 necessity or with the best interests of racing generally.
26 (f) Temporary employee or participant licenses.--Pending
27 final determination of any question under this section, the
28 commission may issue a temporary license upon such terms and
29 conditions as it may deem necessary, desirable or proper to
30 effectuate the provisions of this act.
19770H0867B0974 - 29 -
1 Section 312. Power to impose fines and penalties for pari-
2 mutuel horse race violations.
3 In addition to its power to suspend or revoke licenses
4 granted by it, the commission is hereby authorized and empowered
5 to impose fines upon any corporation, association, or person
6 participating in any way in any pari-mutuel horse race meet at
7 which pari-mutuel betting is conducted, other than as a patron,
8 and whether licensed by the commission or not, for a violation
9 of any provision of this act or the rules promulgated by the
10 commission pursuant thereto, not exceeding $5,000 for each
11 violation, which fines shall be paid into the State Treasury
12 through the Department of Revenue and credited to the General
13 Fund. The action of the commission in imposing any monetary fine
14 shall be subject to appeal to the Commonwealth Court and as
15 approved by that court, or if no appeal is taken, then as
16 imposed, may be collected in an action of assumpsit.
17 Section 313. Security personnel for pari-mutuel horse races.
18 (a) The commission and any association licensed by the
19 commission is hereby authorized and empowered to employ persons
20 as security personnel. These persons shall possess the powers
21 and duties of a peace officer with respect to the enforcement of
22 the criminal laws of the Commonwealth within the race meeting
23 grounds or enclosure. Such designated persons are also
24 authorized and empowered to interrogate and eject from the race
25 meeting grounds or enclosure any persons suspected of violating
26 any rule or regulation promulgated by the commission. The
27 commission and any association licensed by the commission may
28 refuse admission to and eject from enclosure of the race track
29 operated by any association, any person whose presence there is,
30 in the sole judgment of the association or commission,
19770H0867B0974 - 30 -
1 inconsistent with the orderly or proper conduct of a race
2 meeting or whose presence or conduct is deemed detrimental to
3 the best interest of pari-mutuel horse racing. A person so
4 refused admission or so ejected shall have all rights of appeal
5 provided for under this act.
6 (b) Power to refuse admission.--Except as provided for in
7 subsections (c) and (d), any association licensed by the
8 commission may refuse admission to and eject from the enclosure
9 of the race track operated by any association any person except
10 that no person shall be refused admission or be ejected because
11 of the race, color, creed, sex, national origin or religion of
12 such person.
13 (c) Power to refuse admission to certain persons licensed by
14 commission.--An association licensed by the commission may
15 refuse admission to and eject from the enclosure of the race
16 track operated by the association, any person licensed by the
17 commission pursuant to section 311, employed at his occupation
18 at such race track, whose presence there is deemed detrimental
19 to the best interests of horse racing, citing the reason or
20 reasons for such determination. The action of the association in
21 refusing such person admission to or ejecting him from a race
22 meeting ground or enclosure shall have immediate effect. Such
23 person refused admission or ejected shall receive a hearing
24 before the commission, if requested, pursuant to rules and
25 regulations adopted for that purpose by the commission, and a
26 decision rendered following such hearing.
27 (d) Law enforcement official.--A licensee may not refuse
28 admission to or eject a law enforcement official while such
29 official is actually engaged in the performance of his official
30 duties.
19770H0867B0974 - 31 -
1 (e) Fine.--A person found within a race track enclosure
2 after having been refused admission thereto or ejected therefrom
3 shall be guilty of a misdemeanor and upon conviction thereof
4 shall be sentenced to pay a fine not exceeding $1,000 or undergo
5 imprisonment for a term not exceeding six months, or both.
6 Section 314. Refunds.
7 Moneys received by the commission pursuant to this act may,
8 within one year from the receipt thereof, be refunded, to the
9 party for whose account the same were received, on proof
10 satisfactory to the commission that:
11 (1) Such moneys were in excess of the amount required by
12 law.
13 (2) The license for which application was made has been
14 refused by the commission.
15 (3) Such moneys were received as a fine and the
16 commission has, after review, reduced the amount of such
17 fine.
18 (4) Upon appeal, the court reduced or remitted the fine
19 imposed and paid.
20 Such refunds shall, upon approval by the commission and after
21 approval by the Board of Finance and Revenue, be paid from any
22 moneys in the State Harness Racing Fund or moneys in the State
23 Horse Racing Fund, whichever is appropriate, and as much of such
24 moneys as may be necessary from time to time is hereby
25 appropriated for that purpose.
26 Section 315. Place and manner of conducting horse race pari-
27 mutuel betting.
28 Any corporation licensed to conduct pari-mutuel betting at a
29 horse race meeting shall provide a place or places within race
30 meeting grounds or enclosure, at which such licensee shall
19770H0867B0974 - 32 -
1 conduct the pari-mutuel system of betting by its patrons on the
2 result of the horse races at such meetings. Such licensee shall
3 cause to be erected a sign or board upon which shall be
4 displayed the approximate straight odds on each horse in any
5 race; the value of a $2 winning mutuel ticket, straight, place
6 or show on the first three horses in the race; the elapsed time
7 of the race; the value of a $2 winning daily double ticket, if a
8 daily double be conducted, and any other information that the
9 commission may deem necessary for the guidance of the general
10 public. The commission may prescribe, by rule, the type and kind
11 of equipment to be used for the display of the foregoing
12 information or any part thereof.
13 Section 316. Books and records of horse race pari-mutuel
14 betting.
15 Every corporation, conducting a horse race meeting at which
16 pari-mutuel betting is authorized, shall keep its books and
17 records so as to clearly show by separate record the total
18 amount of money contributed to every pari-mutuel pool, including
19 daily double pools, if any. The Department of Revenue or its
20 duly authorized representative shall, at all reasonable times,
21 have access to all such books and records for the purpose of
22 examining and checking the same and ascertaining whether or not
23 the proper amount or amounts due to the Commonwealth of
24 Pennsylvania are being paid by such licensed corporation.
25 Section 317. Filing of certain racing agreements.
26 Every corporation licensed to conduct pari-mutuel horse race
27 meetings at which pari-mutuel betting is permitted shall,
28 promptly, after entering any lease agreement concerning any
29 concession, labor management relation, the hiring of designated
30 classes of officers, employees, or contractors specified by the
19770H0867B0974 - 33 -
1 commission, or any such other contract, agreement or
2 arrangements as the commission may from time to time, prescribe,
3 file with the commission a true and correct copy, or an accurate
4 summary, if oral, thereof.
5 Section 318. Commission power to revoke pari-mutuel horse
6 racing license.
7 The commission may revoke or suspend a license for the
8 conduct of pari-mutuel horse race meetings at which pari-mutuel
9 betting is conducted:
10 (1) for any cause which would permit or require its
11 refusal to issue a license; or
12 (2) if it shall determine that the corporation, to which
13 such license shall have been issued, or its officers or
14 directors fail to conduct racing at its track, including
15 pari-mutuel betting on the races thereat, in accordance with
16 the terms and conditions of such license, the rules of such
17 commission or of the Department of Revenue, or the provisions
18 of this act, or if such corporation or its officers or
19 directors shall knowingly permit on its grounds or within the
20 enclosure of its race track, lotteries, pool selling or
21 bookmaking, or any other kind of gambling, in violation of
22 this act or of Title 18 of the Pennsylvania Consolidated
23 Statutes (relating to crimes and offenses).
24 Section 319. Hearing of refusal or revocation of pari-mutuel
25 horse racing license.
26 If the commission shall refuse to grant a license applied for
27 under this act, or shall revoke or suspend such a license
28 granted by it, the applicant or licensee may demand, within ten
29 days after notice of the said act of the commission, a hearing
30 before the commission and the commission shall give prompt
19770H0867B0974 - 34 -
1 notice of a time and place for such hearing at which the
2 commission will hear such applicant or licensee in reference
3 thereto. Pending such a hearing and final determination thereon,
4 the action of the commission in refusing to grant or in revoking
5 or suspending a license shall remain in full force and effect.
6 The commission may continue such hearing from time to time for
7 the convenience of any of the parties. Any of the parties
8 affected by such hearing may be represented by counsel, and the
9 commission shall be represented by the Attorney General, or a
10 deputy attorney general. In the conduct of such hearing, the
11 commission shall not be bound by technical rules of evidence,
12 but all evidence offered before the commission shall be reduced
13 to writing, and such evidence, together with the exhibits, if
14 any, and the findings of the commission shall be permanently
15 preserved and shall constitute the record of the commission in
16 such case. In connection with such hearing, the commission shall
17 have the power to administer oaths and examine witnesses, and
18 may issue subpoenas to compel attendance of witnesses, and the
19 production of all material and relevant reports, books, papers,
20 documents, correspondence and other evidence. The commission
21 may, if occasion shall require, by order, refer to one or more
22 of its officers the duty of taking testimony in such matter, and
23 to report thereon to the commission, but no determination shall
24 be made therein except by the commission. Within 30 days after
25 the conclusion of such hearing, the commission shall make a
26 final order in writing, setting forth the reasons for the action
27 taken by it and a copy thereof shall be served on such applicant
28 or licensee, as the case may be. The action of the commission in
29 refusing to grant a license or in revoking or suspending a
30 license shall be reviewable by the Commonwealth Court.
19770H0867B0974 - 35 -
1 Section 320. Approval of plans of a pari-mutuel horse racing
2 corporation.
3 The commission shall not grant to a corporation hereafter
4 formed pursuant to this act a license to conduct a pari-mutuel
5 horse race meeting at which pari-mutuel betting may be conducted
6 within the State, until such corporation shall have submitted to
7 the commission a statement of the location of its proposed
8 grounds and race track, together with a plan of such race track
9 and plans of all buildings, seating stands, and other
10 structures, in such form as the commission may prescribe, and
11 such plans shall have been approved by the commission.
12 Section 321. Local option for harness racing license.
13 (a) Local majority support.--The commission shall not
14 consider an application for a license to conduct harness race
15 meetings, until a majority of the electorate of the county in
16 which the racing plant is located, shall have voted in favor of
17 locating a racing plant within the county at an election held on
18 that question. Only one such election shall be held in any
19 county in any four-year period.
20 (b) Form of question for electorate.--An election on the
21 question shall be conducted when at least 5,000 registered
22 electors in any county petition the commission therefor. Upon
23 receipt of such petition, the commission shall give notice of
24 such proposed location by public advertisement in two newspapers
25 of general circulation in such county. The petition shall be
26 certified by the commission to the county board of elections in
27 such county and at the first primary election occurring at least
28 60 days after such certification, the question shall be
29 submitted to the electorate in the manner provided by the
30 election laws of the Commonwealth. Such question shall be in the
19770H0867B0974 - 36 -
1 following form:
2 Do you favor the location of a Harness Racing Plant with
3 pari-mutuel betting in this county?
4 (c) Printing of question on ballot.--The question shall be
5 printed on separate official ballots in bound form by the county
6 board of elections of each county where it is proposed a racing
7 plant shall be located, and a sufficient number of ballots shall
8 be furnished to the election officers in each election district
9 of any such county so that one ballot may be supplied to each
10 voter at such election. In districts where voting machines are
11 used, such question shall appear on the face of the machine
12 where the machine is properly equipped for such purposes.
13 (d) Returns.--The vote at such election shall be canvassed
14 and returned in the manner provided by the election laws of the
15 Commonwealth.
16 Section 322. Wagering and attendance at pari-mutuel horse races
17 prohibited for certain individuals.
18 No commissioner, secretary, deputy, officer, representative,
19 employee or counsel of the commission shall bet upon the outcome
20 of any pari-mutuel horse race conducted at a track at which
21 pari-mutuel betting is conducted by any licensee of the
22 commission. No corporation, which is licensed under this act,
23 shall permit any person who is actually and apparently under 18
24 years of age to bet at a pari-mutuel horse race meeting
25 conducted by it. No such corporation shall permit any person who
26 is actually and apparently between 10 and 18 years of age to
27 attend a pari-mutuel horse race meeting conducted by it unless
28 such person is accompanied by a parent or guardian. No such
29 corporation shall permit any person who is actually and
30 apparently under ten years of age to attend a pari-mutuel horse
19770H0867B0974 - 37 -
1 race meeting conducted by it. This section shall not be
2 construed to prohibit persons under 18 years of age, who are
3 legally employed, from being in and upon the race track premises
4 for the purpose solely of engaging in the performance of their
5 duties as employees. The commission shall, by rule, provide for
6 enforcement of this section.
7 Section 323. Free passes, cards or badges.
8 A corporation licensed to conduct pari-mutuel betting on
9 horse races run at its race track shall not issue free passes,
10 cards, or badges except to persons hereafter described: Officers
11 and employees of the corporation conducting the race meeting;
12 members, officers and employees of the commission; members of
13 harness racing or thoroughbred horse racing associations of
14 other states and foreign countries; public officers engaged in
15 the performance of their duties; persons actually employed and
16 accredited by the press to attend such meetings; owners, stable
17 managers, trainers, drivers, jockeys, concessionaires, and other
18 persons whose actual duties require their presence at such race
19 track. The issuance of tax-free passes, cards, or badges shall
20 be under the rules and regulations of the commission and a list
21 of all persons to whom free passes, cards, or badges are issued
22 shall be filed with the commission.
23 Section 324. Political subdivision agricultural fairs and horse
24 race meetings not licensed to conduct pari-mutuel
25 betting.
26 Pari-mutuel betting on harness races or thoroughbred horse
27 races at any county, or other political subdivision agricultural
28 or other fair held within the State, shall not be authorized,
29 and no lottery, pool selling, bookmaking, or any other kind of
30 gambling upon the results of races, heats, or contests of speed
19770H0867B0974 - 38 -
1 of such horses shall be allowed at such fair, or at any horse
2 race meeting conducted in the State, except such as may be
3 licensed to operate pari-mutuel betting, pursuant to the
4 provisions of this act, which said form of betting as herein
5 provided shall alone be legalized and allowed.
6 Section 325. Employees at pari-mutuel horse race meetings.
7 At least 85% of the persons, exclusive of racing officials,
8 employed each day in the operation and conduct of the pari-
9 mutuel betting at horse race meets licensed pursuant to this
10 act, shall be citizens of the United States of America and
11 residents of the Commonwealth of Pennsylvania for at least two
12 years immediately prior to the commencement of such employment
13 in the operation and conduct of pari-mutuel betting at horse
14 race meets, and each employee shall be required to execute and
15 submit, to the corporation by which he is employed, a duly
16 verified affidavit setting forth his qualifications for
17 employment pursuant to the provisions of this section.
18 SUBCHAPTER B
19 APPROPRIATIONS AND DISPOSITIONS OF FUNDS
20 Section 350. Disposition of harness racing pari-mutuel pools.
21 Every corporation authorized under this act to conduct pari-
22 mutuel betting at a harness horse race meeting on races run
23 thereat shall distribute all sums deposited in any pari-mutuel
24 pool to the holders of winning tickets therein, provided such
25 tickets be presented for payment before April 1 of the year
26 following the year of their purchase, less 17% of the total
27 deposits plus the breaks:
28 (1) At the close of each of the racing days any permit
29 holder shall be licensed to conduct harness racing in any
30 calendar year within any school districts of the first class,
19770H0867B0974 - 39 -
1 the permit holder out of the amount retained on said day by
2 said permit holder, shall pay, through the Department of
3 Revenue into the State Treasury for credit to the State
4 Harness Racing Fund, a tax of 1 1/2% of the amount wagered
5 each day, which tax is hereby imposed, and the permit holder
6 shall pay the school district in which the harness horse race
7 meeting is held a tax of 4% of the amount wagered each day,
8 which tax is hereby imposed for general school purposes and
9 as to other permit holders, the permit holder during any
10 year, out of the amount retained on said day by said permit
11 holder shall pay, through the Department of Revenue into the
12 State Treasury for credit to the State Harness Racing Fund a
13 tax of 5 1/2% of the amount wagered each day which tax is
14 hereby imposed.
15 (2) In addition, each permit holder shall be allowed to
16 retain the odd cents of all redistribution to be made on all
17 mutuel contributions exceeding a sum equal to the next lowest
18 multiple of ten, subject to a tax of 50% of the total sum of
19 such odd cents, which tax is hereby imposed and shall be paid
20 by the permit holder to the Department of Revenue for credit
21 to the Pennsylvania Sire Stakes Fund, which fund is hereby
22 appropriated to the commission for distribution in accordance
23 with the terms of this act.
24 Section 351. Disposition of State harness racing funds.
25 All moneys paid into the State Treasury under the provisions
26 of this act relating to corporations licensed for pari-mutuel
27 harness horse racing activities shall be paid into a special
28 fund hereby created and to be known as the State Harness Racing
29 Fund.
30 Section 352. Appropriation of certain harness racing funds to
19770H0867B0974 - 40 -
1 the Department of Commerce.
2 Thirty-six and one-third per cent of such moneys paid into
3 the State Harness Racing Fund by permit holders conducting
4 racing other than in school districts of the first class shall
5 be paid to the Department of Commerce. Moneys paid to the
6 Department of Commerce are hereby appropriated for distribution
7 by the Secretary of Commerce to eligible boroughs having a
8 population of less than 12,000, eligible townships having a
9 population of less than 12,000, each of their municipality
10 authorities, or county authorities authorized to service the
11 borough or township, for projects providing for the
12 construction, rehabilitation, alteration, expansion, or
13 improvement of water facilities, sewage disposal facilities and
14 access roads, in amounts not to exceed 75% of the cost thereof
15 but not exceeding $75,000, in accordance with regulations
16 promulgated by the Secretary of Commerce and approved by the
17 Governor. No distribution shall be made in connection with any
18 project unless it is determined that the project:
19 (1) is not in conflict with programs of other
20 departments of the Commonwealth;
21 (2) is not inconsistent with an existing development
22 plan for the municipality;
23 (3) could not otherwise be financed;
24 (4) will either strengthen the income-producing
25 capability of the municipality, or improve the health and
26 safety of the community;
27 (5) is necessary to orderly community development; and
28 (6) does not involve other State funds.
29 Section 353. Additional appropriations.
30 As much as may be necessary of such moneys remaining in the
19770H0867B0974 - 41 -
1 State Harness Racing Fund after payments under section 352 is
2 hereby appropriated to pay:
3 (1) The payment of the compensation of employees of the
4 Department of Revenue when used in collecting taxes and
5 penalties imposed by this act.
6 (2) The expenses of the secretary and the Department of
7 Agriculture incurred in administering their duties under this
8 act.
9 Section 354. Moneys to General Fund.
10 Eighty-seven per cent of all moneys, remaining in the State
11 Harness Racing Fund and not required for payments under sections
12 352 and 353 shall be paid into the General Fund.
13 Section 355. Pennsylvania Fair Fund.
14 (a) Appropriation to Department of Agriculture.--The balance
15 of said moneys shall be paid into a fund known as the
16 Pennsylvania Fair Fund. Moneys in the Pennsylvania Fair Fund are
17 hereby appropriated to the Department of Agriculture and shall
18 be distributed by the Secretary of Agriculture, annually, on or
19 before March 1 beginning with the year 1979, as follows:
20 (1) For reimbursement to county agriculture societies,
21 independent agriculture societies and other organizations
22 conducting an annual agricultural fair, as defined
23 hereinafter as follows:
24 (i) a basic payment for operating expenses, the sum
25 of which may not exceed $12,000 for Class A fairs,
26 $10,000 for Class B fairs, $8,000 for Class C fairs,
27 $6,000 for Class D fairs, and $2,000 for Class E fairs.
28 Class A fairs are those which operate on 40 acres or more
29 of land and pay $10,000 or more in premiums to winners of
30 agriculture or agribusiness contests or exhibits; Class B
19770H0867B0974 - 42 -
1 fairs are those operating on 30 acres or more of land and
2 pay $7,500 to $9,999 in premiums to winners of
3 agricultural or agribusiness contests or exhibits; Class
4 C fairs are those operating on 20 acres or more and pay
5 $5,000 to $7,499 in premiums to winners of agricultural
6 or agribusiness contests or exhibits; Class D fairs are
7 those operating on ten or more acres and pay $2,500 to
8 $4,999 in premiums to winners of agricultural or
9 agribusiness contests or exhibits; and Class E fairs are
10 those operating on less than ten acres and pay less than
11 $2,500 in premiums to winners of agricultural or
12 agribusiness contests or exhibits. This basic payment may
13 also be used for the premium awards if expenses of the
14 fair do not total as much as the maximum amount which can
15 be granted in the basic payment, plus
16 (ii) fifty per cent of money paid for all other
17 agricultural premiums not included in subparagraph (i)
18 with a maximum payment for premiums not to exceed
19 $15,000.
20 To be eligible for payment from the Pennsylvania Fair Fund,
21 applications must be filed and approved during the calendar year
22 in which an activity is held.
23 (2) For reimbursement for each county agricultural
24 society and each independent agricultural society conducting
25 harness horse racing during its annual fair other than races
26 for two and three-year-old colts and fillies which races are
27 provided for in paragraph (3), an amount of money equal to
28 that used during their annual fair as purse money for harness
29 horse racing, track and stable maintenance, starting gate
30 rentals and the cost of all harness horse racing officials
19770H0867B0974 - 43 -
1 required during their annual fair, but not more than $10,000,
2 a minimum of one-third of which must be used for purse money.
3 (3) For reimbursement for each county agricultural
4 society and independent agricultural society conducting races
5 for two and three-year-old colts and fillies, at their annual
6 fair on which a maximum of $700 was paid for each such race
7 but not more than $5,600 per year. Entrance fees collected
8 for each such race shall not be included when computing the
9 amount distributed by the Secretary of Agriculture under this
10 subsection.
11 (4) For reimbursement to Statewide agricultural
12 organizations who contribute to the development of many
13 phases of agriculture and/or agribusiness as provided under
14 the rules and regulations drafted and approved by the
15 Secretary of Agriculture:
16 (i) a maximum payment of $2,000 for operating
17 expenses including the payment of agricultural premiums
18 plus;
19 (ii) fifty per cent of money paid for all other
20 agricultural premiums not included in subparagraph (i).
21 In no instance can this total amount exceed $12,000. To
22 be eligible for payment from the Pennsylvania Fair Fund,
23 applications must be filed and approved during the
24 calendar year in which an activity is held.
25 (5) To county-wide or Statewide 4-H and FFA or combined
26 FFA and FHA units of boys and girls under 21 years of age, a
27 basic payment up to $2,000 annually, to be used for the
28 general operations of such units in agriculture or
29 agribusiness programs, provided that an organization whose
30 members consist entirely of minors must apply through and be
19770H0867B0974 - 44 -
1 represented by an adult advisory group and both the
2 organization and the advisory group must be recognized by
3 their respective county governments or by the Commonwealth of
4 Pennsylvania, and further provided that each county-wide or
5 Statewide 4-H and FFA or combined FFA and FHA unit be
6 required to report on its activities and justify these
7 activities as events which contribute to the advancement of
8 agriculture or agribusiness. Such reports shall also include
9 a record of expenses incurred in the conduct of these
10 qualifying activities. The amount awarded to each such youth
11 group cannot exceed the amount of expenses reported for the
12 conduct of activities. In addition to basic payments each
13 participating 4-H, FFA, or combined FFA and FHA units whose
14 membership exceeds 1,000 members will be eligible for
15 additional payments at the rate of $2 per member for each
16 member in excess of 1,000.
17 (b) Definition of agricultural fair.--An annual agricultural
18 fair in the intent of this act shall be deemed to be an event or
19 events totaling no less than three days of activities for Class
20 D and E fairs, no less than five days of activities for Class A,
21 B and C fairs, with each day of activities for all classes
22 consisting of a program or programs of six hours or more in
23 length and all activities so designed as to contribute to the
24 development of several or many phases of agriculture and/or
25 agribusiness and with each fair required to employ the following
26 devices or meet the following requirements:
27 (1) exhibit agricultural or agribusiness products,
28 materials and equipment;
29 (2) conduct agricultural or agribusiness educational
30 activities and demonstrations;
19770H0867B0974 - 45 -
1 (3) award premiums to agricultural or agribusiness
2 contest and exhibit winners with a top award for first place
3 and proportionate awards to runners-up adjudged by position
4 following the winner but not to exceed ten in number;
5 (4) provides proper first aid through medical personnel
6 and adequate sanitary facilities which meet State and local
7 requirements;
8 (5) provide supervision and control over all activities
9 by an officially appointed committee or a board of directors
10 of not less than five persons;
11 (6) file all reports, forms and applications for
12 Pennsylvania Fair Funds and maintain records as required by
13 the rules and regulations drafted and approved by the
14 Secretary of Agriculture; and
15 (7) provides that at least 24% of the events for which
16 agricultural or agribusiness premiums are paid must be "open
17 class" events.
18 (c) When society may receive funds.--No society hereafter
19 incorporated or recognized by a county government or the
20 Commonwealth shall be entitled to the benefits of this act until
21 such society shall have conducted three consecutive annual
22 exhibitions of the character designated in subsection (b) and
23 such society upon its inception shall file with the Secretary of
24 Agriculture a declaration of its intention to apply for said
25 premium money for its fourth year. Such society must also file
26 its report during its first three years the same as any other
27 eligible society. This subsection will not apply to an eligible
28 society heretofore or hereafter incorporated, which shall resume
29 the holding of annual exhibitions of the character designated in
30 the above paragraph, which exhibitions have been for a period of
19770H0867B0974 - 46 -
1 not more than two years temporarily discontinued.
2 Section 356. Certain excess for agricultural research.
3 In the event there is in the Pennsylvania Fair Fund an excess
4 over the amount required to make payments specified in section
5 355, such excess shall be distributed as follows: no more than
6 $75,000, to be used by the Department of Agriculture for
7 marketing and consumer service programs; no more than $400,000,
8 for agricultural research projects, as determined by a committee
9 to include in its membership, the Secretary of Agriculture, the
10 chairman and a minority member of the Agriculture Committee of
11 the Senate, the chairman and a minority member of the
12 Agriculture Committee of the House of Representatives, six
13 persons designated by the Pennsylvania State Council of Farm
14 Organizations, the chairman of the Pennsylvania Wagering and
15 Racing Commission or his designate, one person designated by the
16 Pennsylvania Canners and Fruit Processors Association, one
17 person designated by the Pennsylvania Association of County
18 Fairs and three persons designated by the Secretary of
19 Agriculture from his staff.
20 Section 357. Research subcommittees.
21 There are hereby created subcommittees, the members of which
22 shall consist of the Secretary of Agriculture or his designate,
23 the chairman of the Agriculture Committee of the Senate or his
24 designate, the chairman of the Agriculture Committee of the
25 House of Representatives or his designate, and a member
26 designated by the group representing the producers involved in
27 the research project which shall meet annually in the month of
28 September to evaluate research projects and report their
29 findings and recommendations to the Secretary of Agriculture and
30 the members of the committee.
19770H0867B0974 - 47 -
1 Section 358. Reduction of payments.
2 In the event the amount of money in the Pennsylvania Fair
3 Fund is less than is required to make payments specified in
4 section 355, the amount granted to each recipient shall be
5 reduced proportionately.
6 Section 359. Distribution of excess.
7 In the event there is in the Pennsylvania Fair Fund an excess
8 over the amounts required to make payment specified in sections
9 355 and 356, such excess shall be disbursed by a committee
10 consisting of the Secretary of Agriculture, the chairman of the
11 House Agriculture and Dairy Industries Committee, the chairman
12 of the Senate Agriculture Committee and four additional members
13 to be appointed by the Secretary of Agriculture, two of which
14 shall come from fairs and two of which shall come from the
15 Department of Agriculture. Such excess shall be disbursed on a
16 matching fund basis to fairs in amounts not to exceed $25,000 to
17 any one fair for the purpose of improving buildings and groups,
18 of adding more land, or constructing new facilities for the
19 proper conduct of the fairs except that a fair shall not be
20 eligible for funds hereunder more than once every three years;
21 such disbursements to be made by the Department of Agriculture
22 according to rules and regulations drafted by the Secretary of
23 Agriculture and approved by the committee. Any balance remaining
24 in the funds shall be returned to the General Fund.
25 Section 360. Forms prescribed.
26 The Secretary of Agriculture shall provide forms for
27 application for the distribution of the funds to county and
28 independent agricultural societies and to youth groups with the
29 exception of disbursements made under section 359. The Secretary
30 of Agriculture shall prescribe such rules and regulations as he
19770H0867B0974 - 48 -
1 may deem necessary to carry out the provisions of this section
2 and may make such investigations necessary to determine the
3 validity of any claims and applications for distribution of
4 moneys hereunder.
5 Section 361. Disposition of thoroughbred horse racing pari-
6 mutuel pools.
7 (a) Disposition.--Every corporation authorized under this
8 act to conduct pari-mutuel betting at a thoroughbred horse race
9 meeting on races run thereat shall distribute all sums deposited
10 in any pari-mutuel pool to the holders of winning tickets
11 therein, provided such tickets be presented for payment before
12 April 1 of the year following the year of their purchase, less
13 17% of the total deposits plus the breaks. At the close of each
14 racing day, the permit holder out of the amount retained on said
15 day by said permit holder, shall pay, through the Department of
16 Revenue into the State Treasury for credit to the State Horse
17 Racing Fund, a tax of 4 3/4% of the amount wagered each day,
18 which tax is hereby imposed. At the close of each racing day the
19 permit holder shall pay one-half of 1% of the amount wagered
20 through the Department of Revenue into the State Treasury which
21 shall be credited to the Pennsylvania Breeding Fund by the
22 Treasury Department, which fund is hereby appropriated to the
23 commission for distribution in accordance with the terms of this
24 act, and as to thoroughbred horse race meetings held within
25 school districts of the first class the permit holder shall pay
26 the school district in which the thoroughbred horse race meeting
27 is held a tax of 2% of the amount wagered each day, which tax is
28 hereby imposed for general school purposes. The remainder shall
29 be retained by the permit holder of which at least 5% of the
30 amount wagered each day shall be paid in purse money.
19770H0867B0974 - 49 -
1 (b) Odd funds.--In addition, each permit holder shall be
2 allowed to retain the odd cents of all redistribution to be made
3 on all mutuel contributions exceeding a sum equal to the next
4 lowest multiple of ten, subject to a tax of 50% of the total sum
5 of such odd cents, which tax is hereby imposed and shall be paid
6 by the permit holder at the close of each racing day to the
7 Department of Revenue for credit to the State Horse Racing Fund.
8 Section 362. Pennsylvania Breeding Fund.
9 (a) Creation of breeding fund.--There is hereby created the
10 Pennsylvania Breeding Fund which shall consist of the money
11 appropriated under the provisions of section 361 and which shall
12 be administered by the commission.
13 (b) Division of fund.--After the deduction of expenses for
14 advisory services of the Pennsylvania Horse Breeder's
15 Association the commission shall, by rule or regulation, provide
16 for awards and for purses, the latter to be divided equally
17 among the pari-mutuel permit holders in Pennsylvania as follows:
18 (1) Nonclaiming Pennsylvania-bred fund races, with
19 Pennsylvania-bred horses preferred.
20 (2) Claiming races with Pennsylvania-bred horses
21 preferred.
22 (3) An award of 15% of the purse earned to the breeder
23 of every Pennsylvania-bred horse which finishes first, second
24 or third in a race conducted by a pari-mutuel permit holder
25 in Pennsylvania.
26 (4) An award of 5% of the purse earned to the owner of a
27 Pennsylvania sire, which regularly stands for a breeding
28 season in Pennsylvania, of any Pennsylvania-bred horse which
29 wins a race conducted by a pari-mutuel permit holder in
30 Pennsylvania.
19770H0867B0974 - 50 -
1 (c) Advisory committee.--The Pennsylvania Breeding Fund
2 Advisory Committee, under jurisdiction of the commission, is
3 hereby established and shall be part of the commission. The
4 committee shall consist of five members, all of whom shall be
5 residents of Pennsylvania, to be appointed by the commission by
6 June 1 of each year. The committee shall consist of two members
7 of the Pennsylvania Horse Breeder's Association, recommended by
8 it; one member from the permit holders recommended by them; one
9 member from the association representing horsemen racing in
10 Pennsylvania, recommended by it and one member of the commission
11 designated by it. If any member other than the commission member
12 has not been recommended by June 1 of each year, the commission
13 with the approval of the Governor shall make an appointment for
14 the organization failing to so recommend a member of the
15 committee. The committee shall assist and advise the commission
16 in accordance with the provisions of this act but shall have no
17 power in administering the fund. The members of the committee
18 shall receive no compensation for their services as members.
19 (d) Duties of breeder's association.--The Pennsylvania Horse
20 Breeder's Association as the responsible body for the
21 registration and records of Pennsylvania-breds, shall advise the
22 commission when called upon, shall determine the qualifications
23 for Pennsylvania-bred horses and Pennsylvania sires, and its
24 registration and record facts are hereby declared as official
25 Pennsylvania records. The commission shall on an annual basis
26 reimburse for expenses actually incurred, from moneys in the
27 Pennsylvania-bred Race Fund, the Pennsylvania Horse Breeder's
28 Association for the services it renders in its capacity as
29 advisor to the commission.
30 Section 363. Disposition and appropriation of State Horse
19770H0867B0974 - 51 -
1 Racing Fund.
2 (a) State Horse Racing Fund.--All moneys paid into the State
3 Treasury under the provisions of this act and relating to
4 corporations licensed for pari-mutuel thoroughbred horse racing
5 shall be paid into a special fund hereby created and to be known
6 as the State Horse Racing Fund.
7 (b) Appropriation to Department of Revenue.--As much as may
8 be necessary of such moneys is hereby appropriated to pay for
9 the compensation of employees of the Department of Revenue when
10 used in collecting taxes and penalties imposed by this act.
11 (c) Payment to General Fund.--Eighty-seven per cent of all
12 moneys remaining in the State Horse Racing Fund and not required
13 for payments under subsection (b) shall be paid into the General
14 Fund.
15 (d) Payment to Pennsylvania Fair Fund.--The balance of said
16 moneys shall be paid into a fund known as the Pennsylvania Fair
17 Fund and is hereby appropriated to the Department of Agriculture
18 and shall be distributed by the Secretary of Agriculture in
19 accordance with sections 355, 356 and 359.
20 CHAPTER 4
21 (Reserved)
22 CHAPTER 5
23 STATE LOTTERY AND BINGO
24 SUBCHAPTER A
25 STATE LOTTERY
26 Section 501. Statement of purpose.
27 This chapter is enacted to establish a lottery to be operated
28 by the State, the new proceeds of which are to be used for the
29 purposes of providing property tax relief for the elderly for
30 taxes paid and for providing certain free local transit to
19770H0867B0974 - 52 -
1 persons 65 years of age or older. It is further intended to
2 provide a means through which to curb illegal gambling
3 operations in Pennsylvania.
4 Section 502. Powers and duties of commission with respect to
5 the State lottery.
6 The commission shall have the power and it shall be its duty
7 to operate and administer the lottery, and to promulgate rules
8 and regulations governing the establishment and operation
9 thereof, including but not limited to:
10 (1) The type of lottery to be conducted.
11 (2) The price, or prices, of tickets or shares in the
12 lottery.
13 (3) The numbers and sizes of the prizes on the winning
14 tickets or shares.
15 (4) The manner of selecting the winning tickets or
16 shares.
17 (5) The manner of payment of prizes to the holders of
18 winning tickets or shares.
19 (6) The frequency of the drawings or selections of
20 winning tickets or shares, without limitation.
21 (7) Without limit as to number, the type or types of
22 locations at which tickets or shares may be sold.
23 (8) The method to be used in selling tickets or shares.
24 (9) The licensing of agents to sell tickets or shares
25 provided that no person under the age of 21 shall be licensed
26 as an agent.
27 (10) The manner and amount of compensation, if any, to
28 be paid licensed sales agents necessary to provide for the
29 adequate availability of tickets or shares to prospective
30 buyers and for the convenience of the public.
19770H0867B0974 - 53 -
1 (11) The apportionment of the total revenues accruing
2 from the sale of lottery tickets or shares and from all other
3 sources among
4 (i) the payment of prizes to the holders of winning
5 tickets or shares;
6 (ii) the payment of costs incurred in the operation
7 and administration of the lottery, including the expenses
8 of the division and the costs resulting from any contract
9 or contracts entered into for promotional, advertising or
10 operational services or for the purchase or lease of
11 lottery equipment and materials; and
12 (iii) for property tax relief and free local transit
13 for the elderly as provided in section 508: Provided,
14 however, That no less than 30% of the total revenues
15 accruing from the sale of lottery tickets or shares shall
16 be dedicated to subparagraph (iii).
17 (12) Such other matters necessary or desirable for the
18 efficient and economical operation and administration of the
19 lottery and for the convenience of the purchasers of tickets
20 or shares and the holders of winning tickets or shares.
21 (13) To report monthly to the Governor and the
22 Legislature the total lottery revenues, prize disbursements
23 and other expenses for the preceding month.
24 Section 503. Lottery sales agents.
25 (a) Qualifications.--No license as an agent to sell lottery
26 tickets or shares shall be issued to any person to engage in
27 business exclusively as a lottery sales agent. Before issuing
28 such license the commission shall consider such factors as:
29 (1) The financial responsibility and security of the
30 person and his business or activity;
19770H0867B0974 - 54 -
1 (2) The accessibility of his place of business or
2 activity to the public;
3 (3) The sufficiency of existing licenses to serve the
4 public convenience; and
5 (4) The volume of expected sales.
6 For the purposes of this section, the term "person" shall be
7 construed to mean and include an individual, association,
8 corporation, club, trust, estate, society, company, joint-stock
9 company, receiver, trustee, assignee, referee, or any other
10 person acting in a fiduciary or representative capacity, whether
11 appointed by a court or otherwise, and any combination of
12 individuals. "Person" shall also be construed to mean and
13 include all departments, commissions, agencies and
14 instrumentalities of the State, including counties and
15 municipalities and agencies and instrumentalities thereof.
16 (b) Power to grant license.--If the commission shall find
17 that the experience, character and general fitness of the
18 applicant are such that the participation of such person as a
19 lottery sales agent will be consistent with the public interest,
20 convenience and necessity, it may thereupon grant a license.
21 Without limiting the generality of the foregoing, the
22 commission may refuse to issue a license pursuant to this
23 section, or may suspend or revoke a license so issued if it
24 shall find that the applicant or licensee:
25 (1) Has been convicted of a crime involving moral
26 turpitude.
27 (2) Has engaged in bookmaking or other form of illegal
28 gambling.
29 (3) Has been found guilty of any fraud or
30 misrepresentation in any connection.
19770H0867B0974 - 55 -
1 (4) Has violated any rule, regulation or order of the
2 commission.
3 (c) Refusal or revocation of license.--The commission may
4 refuse to grant a license or may suspend or revoke a license
5 issued pursuant to this section to a corporation, if it shall
6 determine that:
7 (1) Any officer, director, member or stockholder of such
8 corporation applying for a license or of any corporation
9 which owns stock in or shares in the profits, or participates
10 in the management of the affairs of such applicant:
11 (i) has been convicted of a crime involving moral
12 turpitude,
13 (ii) has engaged in bookmaking or other forms of
14 illegal gambling,
15 (iii) has been found guilty of any fraud or
16 misrepresentation in any connection, or
17 (iv) has violated any rule, regulation or order of
18 the secretary.
19 (2) The experience, character, or general fitness of any
20 officer, director, or stockholder of any of the aforesaid
21 corporations is such that the participation of such person as
22 a lottery sales agent would be inconsistent with the public
23 interest, convenience or necessity, but if the secretary
24 determines that the interest of any stockholder referred to
25 in this paragraph or in paragraph (1) is sufficient, in the
26 opinion of the secretary, to affect adversely the conduct of
27 a lottery sales agency by such corporation in accordance with
28 the provisions of this act, the secretary may disregard such
29 interest in determining whether or not to grant a license to
30 such corporation.
19770H0867B0974 - 56 -
1 (3) The applicant is not the owner or the lessee of the
2 business at which it will conduct a lottery sales agency
3 pursuant to the license applied for, or that any person,
4 firm, association, or corporation other than the applicant
5 shares, or will share, in the profits of the applicant, other
6 than by dividends as a stockholder, or participates, or will
7 participate, in the management of the affairs of the
8 applicant.
9 (d) Temporary licenses.--Pending final determination of any
10 question under this section, the commission may issue a
11 temporary license upon such terms and conditions as it may deem
12 necessary, desirable or proper to effectuate the provisions of
13 this act.
14 Section 504. Assignability of prizes drawn.
15 No right of any person to a prize drawn shall be assignable,
16 except that payment of any prize drawn may be paid to the estate
17 of a deceased prize winner, and, except that any person pursuant
18 to an appropriate judicial order may be paid the prize to which
19 the winner is entitled. The commission shall be discharged of
20 all further liability under payment of a prize pursuant to this
21 section.
22 Section 505. Prohibition relating to ticket sales.
23 (a) Sale in excess of regulated price.--No person shall sell
24 a ticket or share at a price greater than that fixed by rule or
25 regulation of the commission.
26 (b) Sale of ticket by unlicensed individual.--No person
27 other than a licensed lottery sales agent shall sell lottery
28 tickets or shares, except that nothing in this section shall be
29 construed to prevent any person from giving lottery tickets or
30 shares to another as a gift.
19770H0867B0974 - 57 -
1 (c) Sales to minors.--No ticket or share shall be sold to
2 any person under the age of 18 years. For the purpose of making
3 a gift, a person 18 years of age or older may purchase a ticket
4 or share for the benefit of a person less than that age.
5 (d) Penalty.--Any person, agent, or employee of any agent
6 who violates the provisions of this section shall be guilty of a
7 misdemeanor, and upon conviction thereof, shall be sentenced to
8 pay a fine not exceeding $1,000.
9 Section 506. Persons excluded from lottery participation.
10 No ticket or share shall be sold to and no prize shall be
11 awarded to any officer or employee of the commission or the
12 Division of the State Lottery in the Department of Revenue or
13 any spouse, child, brother, sister or parent residing as a
14 member of the same household in the principal place of abode of
15 any of the foregoing persons.
16 Section 507. Other laws inapplicable.
17 No other law providing any penalty or disability for the sale
18 of lottery tickets or shares of any acts done in connection with
19 a lottery shall apply to the sale of tickets or shares or acts
20 performed pursuant to this act.
21 Section 508. Disposition of funds from sale of tickets.
22 (a) Fund and usage.--All moneys received from the operation
23 of the State lottery shall be deposited in a State Lottery Fund
24 which is hereby created. Such moneys shall be used to the extent
25 necessary for the payment of lottery prizes but the amount so
26 used shall not be less than 40% of the amount of which tickets
27 or shares have been sold. All payments of lottery prizes shall
28 be made as provided by law. All moneys remaining after payment
29 of prizes shall remain in the State Lottery Fund and shall be
30 allocated for the purpose of providing property tax relief for
19770H0867B0974 - 58 -
1 the elderly pursuant to the provisions of the act of March 11,
2 1971 (P.L.104, No.3), known as the "Senior Citizens Property Tax
3 Assistance Act," and for the purpose of providing local transit
4 for the elderly pursuant to the act of January 22, 1968 (P.L.42,
5 No.8), known as the "Pennsylvania Urban Mass Transportation
6 Assistance Law of 1967." In the event sufficient funds are not
7 available from the lottery receipts to meet the requirements of
8 the act of March 11, 1971 (P.L.104, No.3), known as the "Senior
9 Citizens Property Tax Assistance Act," or for providing local
10 transit for the elderly pursuant to the act of January 22, 1968
11 (P.L.42, No.8), known as the "Pennsylvania Urban Mass
12 Transportation Assistance Law of 1967," additional funds to
13 fulfill these obligations, shall be appropriated from the
14 General Fund for this purpose.
15 (b) Appropriation.--The moneys in said State Lottery Fund
16 shall be appropriated only:
17 (1) for the payment of prizes to the holders of winning
18 lottery tickets or shares; and
19 (2) for property tax relief and free local transit for
20 the elderly as provided under this section.
21 Section 509. Exemption of lottery prizes from certain taxation.
22 Except for State income taxation, no other State or local
23 taxes of any kind whatsoever shall be imposed upon the proceeds
24 from a prize awarded by the State lottery.
25 Section 510. Unclaimed prize money.
26 Unclaimed prize money on a winning lottery ticket or share
27 shall be retained by the secretary for payment to the person
28 entitled thereto for one year after the drawing in which the
29 prize was won. If no claim is made within such period, the prize
30 money shall be paid into the State Lottery Fund and used for
19770H0867B0974 - 59 -
1 purposes as otherwise herein provided.
2 Section 511. Bank deposits and control of lottery transactions.
3 The commission may, in its discretion, require any or all
4 lottery sales agents to deposit to the credit of the State
5 Lottery Fund in banks, designated by the State Treasurer, all
6 moneys received by such agents from the sale of lottery tickets
7 or shares, less the amount, if any, retained as compensation for
8 the sale of the tickets or shares, and to file with the
9 commission or its designated agents reports of their receipts
10 and transactions in the sale of lottery tickets in such form and
11 containing such information as he may require. The commission
12 may make such arrangements for any person, including a bank, to
13 perform such functions, activities or services in connection
14 with the operation of the lottery as he may deem advisable
15 pursuant to this act and the rules and regulations of the
16 commission, and such functions, activities or services shall
17 constitute lawful functions, activities and services of such
18 person.
19 SUBCHAPTER B
20 BINGO
21 Section 531. Jurisdiction over bingo.
22 The commission shall have general jurisdiction over all games
23 commonly called bingo, or substantially the same game under
24 another name, held within the State and all groups engaged
25 therein. The commission, or such officers, employees, or agents
26 designated by it, shall have the power to administer oaths and
27 examine witnesses, and may issue subpoenas to compel the
28 attendance of witnesses and the production of all relevant and
29 material reports, books, papers, documents, correspondence, and
30 other evidence with regard to bingo activities regulated by the
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1 commission.
2 Section 532. Powers and duties relating to bingo activities.
3 The commission shall have the power:
4 (1) To supervise generally all games commonly called
5 bingo, or substantially the same game under another name.
6 (2) To fix minimum and maximum charges for admission.
7 (3) To prescribe the necessary forms and formats for
8 reports to the commission.
9 (4) To issue, renew, suspend and revoke licenses.
10 (5) To collect fines and penalties.
11 (6) To impose limits on the amount of any prize offered
12 by a bingo game.
13 (7) To prohibit any prize in excess of $10,000.
14 (8) To require a percentage of the gross receipts of
15 every bingo game to be returned in the form of prizes.
16 (9) To promulgate such rules and regulations as are
17 necessary to implement the provisions of this subchapter or
18 to present the circumvention or evasion of such provisions.
19 (10) To do all things necessary to carry out the
20 provisions of this division.
21 Section 533. Groups which may apply for license to conduct
22 bingo.
23 Any religious organization under the control of or affiliated
24 with an established church of the Commonwealth, any volunteer,
25 nonprofit fire company or similar organization furnishing public
26 fire protection, any voluntary association for promotion of the
27 interests of retarded children, any volunteer, nonprofit
28 organization furnishing a public ambulance service, any group or
29 individual which or who conducts bingo at a county or local fair
30 and nonprofit athletic associations, desiring to operate or
19770H0867B0974 - 61 -
1 conduct the game commonly called bingo, or substantially the
2 same game under another name, in connection with which prizes
3 are offered to be won by chance, may upon application to the
4 commission be granted a license to conduct said game in a
5 municipality which has voted to allow granting of licenses for
6 the operation, holding or conducting of said game therein:
7 Provided, That the application of such organization is approved
8 by the majority of the legislative body of the municipality: And
9 provided further, That such organization individual or group has
10 been in existence for at least three years immediately prior to
11 the date of making application for such license.
12 Section 534. Licenses.
13 (a) Fees.--The fee for such license shall be $50 per year.
14 The proceeds of said fees shall be paid to the State Treasurer
15 and credited to the State Lottery Fund.
16 (b) Revocation or suspension.--Such license may be revoked
17 at the discretion of the commission and shall be suspended or
18 revoked upon written request to the commission by the
19 municipality approving authority as set forth in section 533.
20 The action of the commission in suspending or revoking a license
21 shall be final, and the licensee shall not have a right of
22 appeal.
23 (c) Time limitations in license.--Each license shall limit
24 the playing of such game to the hours between 7:00 p.m. and 12
25 midnight, except that on Sunday the playing of said game shall
26 be limited to a five-hour period between 1:00 p.m. and 12
27 midnight. Each such organization licensed hereunder shall be
28 limited to conducting such game to three days in each calendar
29 week and said day shall be set forth in the license.
30 Section 535. Prohibitions.
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1 (a) Alcoholic beverages.--No alcoholic beverages shall be
2 sold, dispensed or consumed in that portion of any building or
3 premises of the licensee during the hours such game is being
4 conducted.
5 (b) Minors.--No person under 18 years of age shall be
6 permitted in that portion of any building or premises of the
7 licensee during such time as such game is being played.
8 (c) Advertisement.--No game shall be advertised or
9 publicized by sign or billboard beyond the municipal limits
10 covered by each license.
11 (d) Penalty.
12 (1) Any person violating the provisions of this section
13 shall be guilty of a summary offense and fined a sum not to
14 exceed $300.
15 (2) Any group licensed to conduct bingo which violates
16 the provisions of this section shall have their license
17 suspended for a period of one year and shall pay a fine of
18 $500.
19 Section 536. Exclusive control and management.
20 (a) Local members to control.--Any organization licensed to
21 conduct the bingo game shall operate, manage and control said
22 game by members of the local branch of said organization who
23 have been such members for at least two years.
24 (b) Penalty for individual.--Whoever, not being a member of
25 such organization, operates said game under a license issued to
26 such organization shall be guilty of a misdemeanor and shall be
27 punished by a fine of $1,000 and by imprisonment for not more
28 than one year.
29 (c) Penalty for organization.--If an organization licensed
30 to conduct bingo fails to exercise exclusive control and
19770H0867B0974 - 63 -
1 management of said game, or fails to have one of its members in
2 good standing in full control and management of the game at all
3 times during its operation, it shall be guilty of a misdemeanor
4 and shall be punished by a fine of not more than $1,000.
5 Section 537. Profits.
6 The profits of any game licensed to be conducted shall be the
7 property of the organization conducting said game, and shall be
8 used for charitable, religious or educational purposes, and
9 shall not be distributed to the members of such organization. No
10 person shall be entitled to a percentage of any money received
11 as a result of conducting said game.
12 Section 538. Records and books related to bingo.
13 Accurate records and books shall be kept by each licensee
14 showing the total amount of all moneys deposited by people who
15 played, attended or participated in said games, the expenses
16 incurred and the name and address of each person receiving said
17 money. A separate checking account shall be kept of receipts and
18 expenditures of bingo and money for expenses shall be withdrawn
19 only by checks having preprinted consecutive numbers and made
20 payable to a specific person or corporation and at no time shall
21 a check be made payable to cash. Proceeds from bingo shall be
22 kept in a separate bank account and the organization shall file
23 an annual report in January of the charitable, religious or
24 educational disbursements of the preceding year with the
25 commission in such form as the commission may prescribe. Such
26 annual report shall be a public record. All moneys expended for
27 said charitable, religious or educational purposes shall be duly
28 and accurately recorded as to specific amounts expended and the
29 purposes for which expended. The commission, its duly authorized
30 agents or representatives, shall at all times have access to
19770H0867B0974 - 64 -
1 said records and books of any licensee for the purpose of
2 examining and checking the same.
3 Section 539. Gross receipts tax.
4 (a) Taxation.--A organization operating or conducting a game
5 under this division shall file a return with the Department of
6 Revenue, on a form prepared by it and approved by the Department
7 of Revenue within ten days after such game is held or within
8 such further time as said Department of Revenue may allow, and
9 shall pay therewith a tax of 5% of the gross receipts derived
10 from such game. Such return shall include the names and
11 addresses of all persons receiving prizes over $25 in such game,
12 and the amount of each such prize. All such returns and the
13 amounts of all such payments shall be public records.
14 (b) Liability for tax.--Every officer, employee or member of
15 an organization which fails to pay any sums required by this
16 section to be paid shall be personally and individually liable
17 therefor to the Commonwealth.
18 (c) Disposition of taxes collected.--All sums received by
19 the Department of Revenue from the tax imposed by this section
20 as taxes, interest thereon, fees, penalties, forfeitures, costs
21 of suits or fines, less all amounts refunded thereon, together
22 with any interests or costs paid on account of such refunds,
23 shall be paid to the State Treasurer and shall be credited as
24 follows:
25 (1) Two fifths of all such sums received shall be
26 credited to State Lottery Fund.
27 (2) Three fifths of all such sums received shall be
28 credited to the General Fund.
29 CHAPTER 6
30 (Reserved)
19770H0867B0974 - 65 -
1 CHAPTER 7
2 (Reserved)
3 CHAPTER 8
4 (Reserved)
5 CHAPTER 9
6 (Reserved)
7 CHAPTER 10
8 MISCELLANEOUS
9 SUBCHAPTER A
10 ADMINISTRATIVE CHANGES
11 Section 1001. Transfers.
12 All employees, appropriations, contracts, records, funds and
13 equipment of the State Harness Racing Commission, the State
14 Horse Racing Commission or the State Lottery Commission are
15 hereby transferred to the Pennsylvania Gaming Commission.
16 SUBCHAPTER B
17 REPEALS AND EFFECTIVE DATE
18 Section 1021. Repeals.
19 (a) Specific repeals.--The following acts are specifically
20 repealed:
21 The act of December 22, 1959 (P.L.1978, No.728), entitled, as
22 amended, "An act providing for and regulating harness racing
23 with pari-mutuel wagering on the results thereof; creating the
24 State Harness Racing Commission as a departmental administrative
25 commission within the Department of Agriculture and defining its
26 powers and duties; providing for the establishment and operation
27 of harness racing plants subject to local option; imposing taxes
28 on revenues of such plants; disposing of all moneys received by
29 the commission and all moneys collected from the taxes;
30 authorizing penalties; and making appropriations."
19770H0867B0974 - 66 -
1 The act of December 11, 1967 (P.L.707, No.331), entitled "An
2 act providing for and regulating thoroughbred horse racing with
3 pari-mutuel wagering on the results thereof, creating the State
4 Horse Racing Commission as an independent administrative
5 commission and defining its powers and duties; providing for the
6 establishment and operation of thoroughbred horse racing plants;
7 imposing taxes on revenues of such plants; disposing of all
8 moneys received by the commission and all moneys collected from
9 the taxes; authorizing penalties; and making appropriations."
10 The act of August 26, 1971 (P.L.351, No.91), known as the
11 "State Lottery Law."
12 (b) General repeal.--Any act inconsistent with the
13 provisions of this act is repealed to the extent of the
14 inconsistency.
15 Section 1022. Effective date.
16 This act shall take effect January 1, 1979.
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