Regular Session 2015-2016 House Bill 1589 P.N. 2811

PRINTER'S NO. 2811

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1589

Session of

2015

INTRODUCED BY CAUSER, ADOLPH, BAKER, BOBACK, CUTLER, DUSH,

ELLIS, EMRICK, FEE, GREINER, HAHN, A. HARRIS, HEFFLEY,

HENNESSEY, HICKERNELL, JAMES, KAUFFMAN, M. K. KELLER,

MARSICO, MASSER, MENTZER, MILLARD, PICKETT, RAPP, REED,

SAYLOR, SONNEY, WARD, EVERETT, WATSON, ROSS AND GROVE,

FEBRUARY 5, 2016

REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,

FEBRUARY 5, 2016

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled,

as amended, "An act relating to the finances of the State

government; providing for the settlement, assessment,

collection, and lien of taxes, bonus, and all other accounts

due the Commonwealth, the collection and recovery of fees and

other money or property due or belonging to the Commonwealth,

or any agency thereof, including escheated property and the

proceeds of its sale, the custody and disbursement or other

disposition of funds and securities belonging to or in the

possession of the Commonwealth, and the settlement of claims

against the Commonwealth, the resettlement of accounts and

appeals to the courts, refunds of moneys erroneously paid to

the Commonwealth, auditing the accounts of the Commonwealth

and all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," in additional special funds, further providing

for distributions from the Pennsylvania Racehorse Development

Fund; and providing for allocations from the Pennsylvania

Racehorse Development Restricted Receipt Account.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1723-A.1 of the act of April 9, 1929

(P.L.343, No.176), known as The Fiscal Code, amended July 10,

2014 (P.L.1053, No.126), is amended to read:

Section 1723-A.1. Distributions from Pennsylvania Race Horse

Development Fund.

Funds in the fund are appropriated to the department on a

continuing basis for the purposes set forth in this subsection

and shall be distributed to each active and operating Category 1

licensee conducting live racing as follows:

(1) An amount equal to 18% of the daily gross terminal

revenue of each Category 1 licensee shall be distributed to

each active and operating Category 1 licensee conducting live

racing unless the daily assessments are affected by the daily

assessment cap provided for in 4 Pa.C.S. § 1405(c) (relating

to Pennsylvania Race Horse Development Fund). In cases in

which the daily assessment cap affects daily assessments, the

distribution to each active and operating Category 1 licensee

conducting live racing for that day shall be a percentage of

the total daily assessments paid into the fund for that day

equal to the gross terminal revenue of each active and

operating Category 1 licensee conducting live racing for that

day divided by the total gross terminal revenue of all active

and operating Category 1 licensees conducting live racing for

that day. Except as provided in paragraphs (2) and (2.1), the

distributions to licensed racing entities from the fund shall

be allocated as follows:

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(i) Eighty percent shall be deposited weekly into a

separate, interest-bearing purse account to be

established by and for the benefit of the horsemen. The

earned interest on the account shall be credited to the

purse account. Licensees shall combine these funds with

revenues from existing purse agreements to fund purses

for live races consistent with those agreements with the

advice and consent of the horsemen.

(ii) For thoroughbred tracks, 16% shall be deposited

on a monthly basis into the Pennsylvania Breeding Fund as

defined in section 223 of the Race Horse Industry Reform

Act. For standardbred tracks, 8% shall be deposited on a

monthly basis in the Pennsylvania Sire Stakes Fund as

defined in section 224 of the Race Horse Industry Reform

Act, and 8% shall be deposited on a monthly basis into a

restricted account in the State Racing Fund to be known

as the Pennsylvania Standardbred Breeders Development

Fund. The State Harness Racing Commission shall, in

consultation with the Secretary of Agriculture, by rule

or by regulation, adopt a standardbred breeders program

that will include the administration of the Pennsylvania

Stallion Award, the Pennsylvania Bred Award and the

Pennsylvania Sired and Bred Award.

(iii) Four percent shall be used to fund health and

pension benefits for the members of the horsemen's

organizations representing the owners and trainers at the

racetrack at which the licensed racing entity operates

for the benefit of the organization's members, their

families, employees and others in accordance with the

rules and eligibility requirements of the organization,

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as approved by the State Horse Racing Commission or the

State Harness Racing Commission. This amount shall be

deposited within five business days of the end of each

month into a separate account to be established by each

respective horsemen's organization at a banking

institution of its choice. Of this amount, $250,000 shall

be paid annually by the horsemen's organization to the

thoroughbred jockeys or standardbred drivers organization

at the racetrack at which the licensed racing entity

operates for health insurance, life insurance or other

benefits to active and disabled thoroughbred jockeys or

standardbred drivers in accordance with the rules and

eligibility requirements of that organization.

(2) Distributions from the fund shall be allocated as

follows:

(i) For fiscal years 2013-2014 and 2014-2015, each

week, $802,682 in the fund shall be transferred to the

account. This transfer shall not exceed $17,659,000

annually.

(i.1) In addition to the transfer under subparagraph

(i), for a total of 14 weeks from the effective date of

this subparagraph, each week, $300,000 shall be

transferred from the fund, for a total amount of

$4,200,000, to the State Racing Fund to be used

exclusively for the enforcement of the act of December

17, 1981 (P.L.435, No.135), known as the Race Horse

Industry Reform Act. Moneys transferred pursuant to this

subparagraph shall not be transferred subsequently to any

other State fund or account for any purpose.

(i.2) (A) For fiscal year 2015-2016, each week,

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beginning on the effective date of this subparagraph

and ending on June 30, 2016, an amount in the fund

equal to the amount as determined under clause (ii)

shall be transferred to the account. The transfer

shall not exceed $25,759,000 annually.

(B) Within five days of the effective date of

this subparagraph, the Secretary of the Budget shall

do all of the following:

(I) Determine the number of weeks in which

deposits from the fund to the account under this

subparagraph may be made.

(II) Divide the amount of $25,759,000 by the

number determined under subclause (I).

(III) Notify the Majority and Minority

Chairmen of the Appropriations Committee of the

Senate and the Majority and Minority Chairmen of

the Appropriations Committee of the House of

Representatives of the amount determined under

this subclause.

(ii) Each week, the money remaining in the fund

after any transfer under subparagraphs (i) [and], (i.1)

and (i.2) shall be distributed to each active and

operating Category 1 licensee conducting live racing in

accordance with the following formula:

(A) Divide:

(I) the total daily assessments paid, by

each active and operating Category 1 licensee

conducting live racing, into the fund for that

week; by

(II) the total daily assessments paid, by

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all active and operating Category 1 licensees

conducting live racing, into the fund for that

week.

(B) Multiply the quotient under clause (A) by

the amount to be distributed under this subparagraph.

(iii) The distribution under subparagraph

(ii) shall be allocated as follows:

(A) The greater of 4% of the amount to be

distributed under subparagraph (ii) or $220,000 shall

be used to fund health and pension benefits for the

members of the horsemen's organizations representing

the owners and trainers at the racetrack at which the

licensed racing entity operates for the benefit of

the organization's members, their families, employees

and others in accordance with the rules and

eligibility requirements of the organization, as

approved by the State Horse Racing Commission or the

State Harness Racing Commission. This amount shall be

deposited within five business days of the end of

each week into a separate account to be established

by each respective horsemen's organization at a

banking institution of its choice. Of this amount, a

minimum of $250,000 shall be paid annually by the

horsemen's organization to the thoroughbred jockeys

or standardbred drivers organization at the racetrack

at which the licensed racing entity operates for

health insurance, life insurance or other benefits to

active and disabled thoroughbred jockeys or

standardbred drivers in accordance with the rules and

eligibility requirements of that organization. The

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total distribution under this clause in any fiscal

year shall not exceed $11,400,000.

(B) Of the money remaining to be distributed

under subparagraph (ii) after application of clause

(A), the following disbursements shall be made:

(I) Eighty-three and one-third percent of

the money to be distributed under this clause

shall be deposited on a weekly basis into a

separate, interest-bearing purse account to be

established by and for the benefit of the

horsemen. The earned interest on the account

shall be credited to the purse account. Licensees

shall combine these funds with revenues from

existing purse agreements to fund purses for live

races consistent with those agreements with the

advice and consent of the horsemen.

(II) For thoroughbred tracks, 16 and 2/3% of

the money to be distributed under this clause

shall be deposited on a weekly basis into the

Pennsylvania Breeding Fund established in section

223 of the Race Horse Industry Reform Act. For

standardbred tracks, 8 and 1/3% of the money to

be distributed under this clause shall be

deposited on a weekly basis into the Pennsylvania

Sire Stakes Fund as defined in section 224 of the

Race Horse Industry Reform Act; and 8 and 1/3% of

the money to be distributed under this clause

shall be deposited on a weekly basis into a

restricted account in the State Racing Fund to be

known as the Pennsylvania Standardbred Breeders

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Development Fund. The State Harness Racing

Commission shall, in consultation with the

Secretary of Agriculture, promulgate regulations

adopting a standardbred breeders program that

will include the administration of the

Pennsylvania Stallion Award, the Pennsylvania

Bred Award and the Pennsylvania Sired and Bred

Award.

Section 2. The act is amended by adding a section to read:

S ection 1724- A. 1. A llocations from P ennsylvania R ace H orse

Development Restricted Receipt Account.

(a) G eneral rule.-- E xcept as provided under subsection (b),

money transferred to the P ennsylvania R ace H orse Development

Restricted Receipt Account each fiscal year shall only be used

as appropriated by the G eneral A ssembly.

(b) E xception.-- F or the 2015-2016 fiscal year, money in the

account shall be distributed as follows:

(1) Nineteen and forty-one hundredths percent shall be

transferred to the State Farm Products Show Fund.

(2) Twenty and seventy-seven hundredths percent is

hereby appropriated to the Department of Agriculture, upon

approval of the Governor, for use by the Animal Health

Commission.

(3) Twenty and sixty-one hundredths percent is hereby

appropriated to the Department of Agriculture, upon approval

by the Governor, for use by the Pennsylvania Veterinary

Laboratory System.

(4) Fifteen and fifty-three hundredths percent is hereby

appropriated to the Department of Agriculture, upon approval

by the Governor, for use for payments to the Pennsylvania

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fairs.

(5) Twenty-three and sixty-eight hundredths percent

shall be transferred to the State Racing Fund.

Section 3. This act shall take effect immediately.

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