Regular Session 2015-2016 Senate Bill 0352 P.N. 0505

PRIOR PRINTER'S NO. 259

PRINTER'S NO. 505

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

352

Session of

2015

INTRODUCED BY VOGEL, YAW, YUDICHAK, VULAKOVICH, WOZNIAK, HUGHES,

WHITE, RAFFERTY, SCARNATI AND WARD, JANUARY 28, 2015

SENATOR VOGEL, AGRICULTURE AND RURAL AFFAIRS, AS AMENDED,

FEBRUARY 24, 2015

AN ACT

Amending the act of December 17, 1981 (P.L.435, No.135),

entitled "An act providing for the regulation of pari-mutuel

thoroughbred horse racing and harness horse racing

activities; imposing certain taxes and providing for the

disposition of funds from pari-mutuel tickets," in general

provisions, further providing for definitions; repealing

provisions relating to the State Horse Racing Commission and

State Harness Racing Commission; in racing oversight,

providing for racing oversight, for pari-mutuel wagering

licensing and for advance deposit wagering; in medication

rules and enforcement provisions, further providing for

mandatory requirements for medication rules, for

establishment of Pennsylvania Race Horse Testing Program, for

costs for enforcement of medication rules; and providing for

the cessation of the State Horse Racing Commission and the

State Harness Racing Commission.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 102 of the act of December 17, 1981

(P.L.435, No.135), known as the Race Horse Industry Reform Act,

amended or added May 16, 1986 (P.L.205, No.63) and November 30,

1988 (P.L.1090, No.127), is amended to read:

Section 102. Definitions.

The following words and phrases when used in this act shall

have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

["Air mile." A unit of distance equal to 1,852 kilometers or

5,280 feet for purposes of this act.]

"Advance deposit account wagering." A form of pari-mutuel

wagering in which an individual may establish an account with a

person licensed by the commission, and may place a pari-mutuel

wager through that account.

"Applicant." A person who, on his own behalf or on behalf of

another, is applying for permission to engage in an act or

activity which is regulated under the provisions of this act. If

the applicant is a person other than an individual, the

commission shall determine the associated persons whose

qualifications are necessary as a precondition to the licensing

of the applicant.

"Backside area." As defined in 4 Pa.C.S. § 1103 (relating to

definitions).

"Breakage." The odd cents of redistributions to be made on

contributions to pari-mutuel pools exceeding a sum equal to the

next lowest multiple of ten.

"Clean letter of credit." A letter of credit which is

available to the beneficiary against presentation of only a

draft or receipt.

"Commission." The State Horse Racing Commission.

["Commissions." The State Horse Racing Commission and the

State Harness Racing Commission.

"Commissioners." The persons appointed by the Governor and

confirmed by the Senate who serve on the State [Horse Racing

Commission or the State Harness] Racing Commission and who

administer the applicable provisions of this act.]

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"Commissioner." An individual appointed to and sworn in as a

member of the commission in accordance with section 201-A(c)

201-A(B) .

"Conviction." As defined in 4 Pa.C.S. § 1103 (relating to

definitions).

"Electronic wagering." A legal wager placed by an individual

in this Commonwealth related only to the outcome of a horse race

taking place in this Commonwealth, placed or transmitted by an

individual through telephone or any electronic media approved by

the commission and accepted by a licensed racing entity or its

approved off-track betting system located in this Commonwealth.

"Evergreen clause." A term in a letter of credit providing

for automatic renewal of the letter of credit.

"Ex parte communication." An off-the-record communication

engaged in or received by a commissioner or hearing officer of

the commission regarding the merits of, or any fact in issue

relating to, a pending matter before the commission or hearing

officer or which may reasonably be expected to come before the

commission or hearing officer in a contested on-the-record

proceeding. The term shall not include:

(1) An off-the-record communication by a commissioner or

hearing officer of the commission, the Department of Revenue,

Pennsylvania State Police, Attorney General or other law

enforcement official, prior to the beginning of the

proceeding solely for the purpose of seeking clarification or

correction to evidentiary materials intended for use in the

proceedings.

(2) A communication between the commission or a

commissioner and legal counsel.

"Felony." As defined in 4 Pa.C.S. § 1213(4) (relating to

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license or permit prohibition).

"Financial interest." An ownership, property, leasehold or

other beneficial interest in an entity. The term shall not

include an interest which is held or deemed to be held in any of

the following:

(1) Securities that are held in a pension plan, profit-

sharing plan, individual retirement account, tax-sheltered

annuity, a plan established under section 457 of the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 457), or

any successor provision, deferred compensation plan whether

qualified or not qualified under the Internal Revenue Code of

1986, or any successor provision or other retirement plan

that:

(i) Is not self-directed by the individual.

(ii) Is advised by an independent investment adviser

who has sole authority to make investment decisions with

respect to contributions made by the individual to these

plans.

(2) A tuition account plan organized and operated under

section 529 of the Internal Revenue Code of 1986 that is not

self-directed by the individual.

(3) A mutual fund where the interest owned by the mutual

fund in a licensed racing entity does not constitute a

controlling interest as defined in 4 Pa.C.S. § 1103 (relating

to definitions).

"HORSE RACE MEETING." A SPECIFIED PERIOD AND DATES EACH YEAR

DURING WHICH A LICENSED RACING ENTITY IS AUTHORIZED TO CONDUCT

LIVE RACING OR PARI-MUTUEL WAGERING AS APPROVED BY THE

COMMISSION.

"Horse racing." Standardbred horse racing and thoroughbred

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horse racing.

"Horseman's organization." A trade association which

represents the majority of owners and trainers who own and race

horses at a racetrack.

"IMMEDIATE FAMILY." A SPOUSE, PARENT, BROTHER, SISTER OR

CHILD.

"Irrevocable clean letter of credit." A clean letter of

credit which cannot be canceled or amended unless there is an

agreement to cancel or amend among all parties to the letter of

credit.

"Land mile." A unit of distance equal to 1,609.3 meters or

5,280 feet.

["Licensed corporations." The corporations that have

obtained a license from either the State Horse Racing Commission

or the State Harness Racing Commission to conduct thoroughbred

or harness horse race meetings respectively with pari-mutuel

wagering.]

"Licensed advance deposit account wagering entity." A person

licensed by the commission to conduct advance deposit account

wagering and accept deposits and wagers, issue receipts or other

confirmation to the account holder evidencing such deposits and

wagers, and transfer credits and debits to and from accounts.

"Licensed entity." As defined in 4 Pa.C.S. § 1103 (relating

to definitions).

"Licensed facility." As defined in 4 Pa.C.S. § 1103

(relating to definitions).

"Licensed entity representative." A person, including an

attorney, agent or lobbyist, acting on behalf of or authorized

to represent the interest of any applicant, licensee, permittee

or other person authorized by the commission to engage in any

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act or activity regulated by the commission under this act

regarding any matter before, or which may be reasonably expected

to come before, the commission. The term shall include a person

representing a horseman's organization or a horse breeder's

organization.

"Licensed racing entity." Any person that has obtained a

license to conduct live thoroughbred or harness horse race

meetings respectively with pari-mutuel wagering from the

commission.

"Licensee." The holder of a license issued under this act.

"Nonprimary location." Any facility in which pari-mutuel

wagering is conducted by a licensed racing entity pursuant to

this act other than the [primary racetrack location] racetrack

where live racing is conducted.

["Nonprimary location statement." The written statement

pursuant to this act submitted to the appropriate commission by

a licensed corporation planning to establish a nonprimary

location.]

"Ownership interest." Owning or holding, or being deemed to

hold, debt or equity securities or other ownership interest or

profit interest.

"Permittee." The holder of a permit issued under this act.

"PERSON." ANY NATURAL PERSON, CORPORATION, FOUNDATION,

ORGANIZATION, BUSINESS TRUST, ESTATE, LIMITED LIABILITY COMPANY,

LICENSE CORPORATION, TRUST, PARTNERSHIP, LIMITED LIABILITY

PARTNERSHIP, ASSOCIATION OR ANY OTHER FORM OF LEGAL BUSINESS

ENTITY.

"Primary market area of a racetrack." The land area included

in a circle drawn with the racetrack as the center and a radius

of 35 land miles.

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"Racetrack." The physical facility where a licensed

[corporation] racing entity conducts thoroughbred or [harness]

standardbred race meetings respectively with pari-mutuel

wagering.

"Racetrack enclosure." For purposes of this act, the term

"racetrack enclosure," with respect to each licensed

[corporation] racing entity, shall be deemed to include at least

one primary racetrack location at which horse race meetings

authorized to be held by the licensed [corporation] racing

entities are conducted, and all primary, nonprimary, contiguous

and noncontiguous locations of the licensed [corporation] racing

entity which are specifically approved by the [appropriate]

commission for conducting the pari-mutuel system of wagering on

the results of horse [races] racing held at such meetings or

race meetings conducted by another licensed [corporation] racing

entity or televised to such locations by simulcasting.

"Secondary market area of a racetrack." The land area

included in a circle drawn with the racetrack as the center and

a radius of 50 land miles, not including the primary market area

of the racetrack.

"Simulcast." The transmission of live electronically

televised video/audio races from the host racetrack to the [race

track] racetrack receiving the television transmission.

"Standardbred horse racing" or "harness racing." A form of

horse racing in which the horses participating are attached "in

harness" to a sulky or other similar vehicle, at a specific

gait, either a trot or pace.

"Thoroughbred horse racing." The form of horse racing in

which each participating horse is mounted by a jockey, is duly

registered with The Jockey Club of New York and engages in horse

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racing on the flat, which may include a steeplechase or hurdle

race.

"Totalisator." A computer system used to pool wagers, record

sales, calculate payoffs and display wagering data on a display

device that is located at a pari-mutuel facility or nonprimary

location.

Section 2. Chapter 2 of the act is repealed:

[CHAPTER 2

STATE HORSE RACING COMMISSION AND STATE HARNESS

RACING COMMISSION

Section 201. Establishment of the commissions.

(a) The State Horse Racing Commission is hereby established

as a departmental administrative commission within the

Department of Agriculture. The commission shall have general

jurisdiction over all pari-mutuel thoroughbred horse racing

activities in the Commonwealth and the corporations engaged

therein. For the purposes of this act, "thoroughbred horse

racing" means that form of horse racing in which each

participating horse is mounted by a jockey, is duly registered

with the Jockey Club, New York, New York and engages in races on

the flat. Thoroughbred horse racing may include a steeplechase

or hurdle race. The commission shall consist of three members

who shall be appointed by the Governor, by and with the advice

and consent of the Senate. Each commissioner shall hold office

for a term of three years and until a successor is qualified.

(b) The State Harness Racing Commission is hereby

established as a departmental administrative commission within

the Department of Agriculture. The commission shall have general

jurisdiction over all pari-mutuel harness racing activities in

the Commonwealth and the corporations engaged therein. The

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commission shall consist of three members who shall be appointed

by the Governor, by and with the advice and consent of the

Senate. Each commissioner shall hold office for a term of three

years and until a successor is qualified.

expenses incurred in the performance of their official duties.

The commissioners shall be paid $150 per diem for performing

their duties as directed by the Secretary of Agriculture. One of

the commissioners for each commission shall be appointed by the

Governor as chairperson. The commissioner appointed by the

Governor as chairperson shall serve in that position at the

pleasure of the Governor. The Secretary of Agriculture or his

designee shall be a nonvoting ex officio member of the

commissions. The commissions shall meet at least once a month

and at other times as the Secretary of Agriculture or the

commission chairperson deems necessary. Adequate public notice

of the time and place of the meetings shall be given. A

commissioner who fails to attend three consecutive meetings

shall be subject to removal. A commissioner shall be excused

from meetings due to illness or death of an immediate family

member. All commissioners shall be licensed under the provisions

of section 213.

(d) Each commission shall engage an executive secretary,

deputies, secretaries, officers and representatives as it may

deem necessary, who shall serve during its pleasure. The

commissions shall also engage other employees as they see fit

and whose duties shall be prescribed by the commissions and

whose compensation shall be fixed by the commissions within the

appropriations available. Legal counsel for the commissions

shall be appointed in accordance with the act of October 15,

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1980 (P.L.950, No.164), known as the "Commonwealth Attorneys

Act." Each commission shall be subject to the provisions of the

act of April 9, 1929 (P.L.177, No.175), known as "The

Administrative Code of 1929," as to classification and

compensation for all its employees.

(e) It shall be the duty of the executive secretary to keep

a full and faithful record of the proceedings of the

commissions, preserve at the general office of the commissions

all books, maps, documents and papers entrusted to the executive

secretary's care, prepare for service the papers and notices as

may be required by the commissions and perform other duties as

the commissions may prescribe. It shall be the duty of the

executive secretary to keep, at the offices of the commissions,

a docket setting forth the names of all stockholders in all

corporations licensed under this act, the number of shares held

by each stockholder and the date on which each shareholder

acquired stock in the licensed corporation. The docket shall be

open for public inspection. It shall be the duty of the

executive secretary to appear before the Appropriations

Committees of the Senate and the House of Representatives for

budgetary review and recommendations.

(f) The commissions or designated officers, employees or

agents of the commissions shall have the power to administer

oaths and examine witnesses and may issue subpoenas to compel

attendance of witnesses and production of all relevant and

material reports, books, papers, documents, correspondence and

other evidence. The commissions shall, annually, make a full

report to the Secretary of Agriculture of their proceedings for

the preceding calendar year and suggestions and recommendations

as they see fit. The commissions shall exercise their powers and

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duties in accordance with the provisions of "The Administrative

Code of 1929."

(g) The terms and termination dates of the terms of the

three commissioners who constitute the State Horse Racing

Commission under the act of December 11, 1967 (P.L.707, No.331),

referred to as the Pennsylvania Thoroughbred Horse Racing Law,

shall continue under this act. Any commissioner whose term has

already expired on the effective date of this act and who has

not been replaced by a new member or has not been confirmed for

another term, shall continue in his or her present status until

replaced by a new member or confirmed for another term.

(h) The terms and termination dates of the terms of the

three commissioners who constitute the State Harness Racing

Commission under the act of December 22, 1959 (P.L.1978,

No.728), referred to as the Pennsylvania Harness Racing Law,

shall continue under this act. Any commissioner whose term has

already expired on the effective date of this section and who

has not been replaced by a new member or has not been confirmed

for another term, shall continue in his or her present status

until replaced by a new member or confirmed for another term.

(i) All rules and regulations promulgated under the

provisions of the Pennsylvania Thoroughbred Horse Racing Law and

the Pennsylvania Harness Racing Law shall remain in effect

except to the extent that they are in direct conflict with the

provisions of this act. The commissions may amend, revise or

alter these rules and regulations as they deem necessary.

(j) All licenses issued under the provisions of section 11

of the Pennsylvania Thoroughbred Horse Racing Law and under the

provisions of section 9 of the Pennsylvania Harness Racing Law,

shall remain in effect for the remainder of the term for which

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these licenses were issued. After these licenses have expired,

all renewals or new licenses shall be issued under the

provisions of this act.

(k) All licenses issued to corporations under the provisions

of section 7 of the Pennsylvania Thoroughbred Horse Racing Law

and under the provisions of section 7 of the Pennsylvania

Harness Racing Law, shall continue with the same force and

effect and shall be governed by the provisions of section 209.

Section 202. General powers of the commissions.

(a) The State Horse Racing Commission shall have the power

to supervise all thoroughbred horse race meetings at which pari-

mutuel wagering is conducted. The State Harness Racing

Commission shall have the power to supervise all harness horse

racing meetings at which pari-mutuel wagering is conducted. The

commissions may adopt rules and regulations to effect the

purposes and provisions of this act.

(b) Without limiting the generality of the foregoing and in

addition to its other powers:

(1) Each commission shall have power to fix a minimum

charge for admission to horse race meetings at which pari-

mutuel wagering is conducted, but the minimum charge shall

not be less than 50¢ for general admission, exclusive of

taxes. The commissions shall have power to fix the charge for

admission of soldiers, sailors and marines, in uniform, at

one-half of the amount fixed for general admission, whether

or not the one-half of the amount fixed is less than the

minimum prescribed therein.

(2) Each commission shall at all times have in effect

rules and regulations as required under Chapter 3 regarding

medication rules and enforcement provisions.

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(3) The rules of the commissions shall also provide that

all winning pari-mutuel tickets must be presented for payment

before April 1 of the year following the year of their

purchase and failure to present the ticket within the

prescribed period of time shall constitute a waiver of the

right to participate in the award. After April 1 of the year

following, all licensed corporations will forward to the

State Treasurer through the Department of Revenue for credit

to the State Racing Fund all funds so held for the uncashed

tickets. Where it is shown to the satisfaction of the

appropriate commission and the Department of Revenue, through

substantiated and recorded data, that the reason for the

pari-mutuel ticket or tickets being outstanding and unclaimed

is loss, misplacement or theft within the confines and

control of the pari-mutuel department of any licensed

corporation and it is shown to the satisfaction of the

appropriate commission and the Department of Revenue that the

pari-mutuel ticket or tickets in question have been cashed by

the pari-mutuel department, the Department of Revenue, with

the approval of the appropriate commission, may adjust and

credit the licensed corporation's outstanding ticket account

accordingly on March 31 of the year following the year of

purchase or after a complete audit of the outstanding tickets

accounts have been performed. The licensed corporation shall

reimburse any employee who has been held personally

accountable and paid for the lost, misplaced or stolen

tickets.

(4) The commissions may adopt a general promotion

program to assist the licensed corporations in increasing

their attendance and average daily handle. Any expenditures

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for a promotional program shall be authorized and approved in

the same manner as other operational costs of the

commissions.

(5) In the event that a state bordering Pennsylvania

enacts a wagering tax scheme that may place Pennsylvania

horse race meetings at a competitive disadvantage in the

purses that can be offered for horse races, a licensed

corporation may petition the appropriate commission for an

emergency financial grant to augment its purse structure. If

the appropriate commission finds that the effect of the

enacted wagering tax scheme of a bordering state is to place

Pennsylvania horse race meetings at a competitive

disadvantage in purse structure, the appropriate commission

shall make an emergency financial grant to the petitioning

licensed corporation for augmentation to its purse structure

out of moneys that the commission has budgeted for this

purpose; provided, however, that the Secretary of Agriculture

and the Secretary of the Office of Budget and Administration

have also agreed to the grant.

jurisdiction over and shall promulgate regulations as necessary

for the proper administration of all racing conducted by a

county agricultural society or an independent agricultural

society, as provided for under section 5(1)(iii) and (iv) of the

act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania

Agricultural Fair Act."

Section 203.

race meet except on obtaining a license from the appropriate

commission and at the location or locations designated in its

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license or any amendment thereto or as approved at any time by

the commission as the place or places at which it was proposed

to conduct its business. This restriction shall not apply to any

corporation whose racing plant or usefulness, in the discretion

of the appropriate commissions, shall, for any reason beyond the

control of the corporation, be totally destroyed or so

substantially interfered with as to render same unfit for

continued operation. Pending the rebuilding or restoration of

its usefulness, or the making of the required repairs to the

plant or the part destroyed or damaged, the commissions may

license such corporation to conduct its horse race meetings at

any other suitable location.

Section 204. Filing of information concerning stock transfers;

necessity for commissions' approval.

(a) Whenever a transfer of stock comprising an interest of

5% or more in any licensed corporation, or comprising an

interest of 5% or more in any corporation which leases to a

licensed corporation the track facility at which it conducts

pari-mutuel horse races or comprising an interest of 5% or more

in any corporation which owns 25% or more of the stock of the

licensed corporation shall be made, there shall be filed,

simultaneously, with the corporation which issued such stock the

following:

(1) In duplicate, an affidavit executed by the

transferee of the interest stating that he is to be the sole

beneficial owner thereof, and whether or not he:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has been engaged in bookmaking or other forms

of illegal gambling;

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(iii) has been found guilty of any fraud or

misrepresentation in connection with racing or breeding;

(iv) has been guilty of any violation or attempt to

violate any law, rule or regulation of any racing

jurisdiction, for which suspension from racing might be

imposed in such jurisdiction; or

(v) has violated any rule, regulation or order of

the commissions.

If the transferee of the interest is not, or is not to be,

the sole beneficial owner, there shall be annexed to the

affidavit of the transferee, and expressly stated in such

affidavit, a true and complete copy of all terms of the

agreement pursuant to which the interest in the corporation

is to be held by the transferee, including a detailed

statement of the interest of each person who is to have any

interest therein.

(2) In duplicate, an affidavit executed by each person

for whom the interest is to be held by the transferee,

setting forth whether or not the affiant:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has engaged in bookmaking or other forms of

illegal gambling;

(iii) has been found guilty of any fraud or

misrepresentation in connection with racing or breeding;

(iv) has been guilty of any violation or attempt to

violate any law, rule or regulation of any racing

jurisdiction, for which suspension from racing might be

imposed in such jurisdiction; or

(v) has violated any rule, regulation or order of

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the commissions.

To each of the affidavits shall be annexed, and expressly

stated in such affidavit, a true and complete copy of all the

terms of the agreement pursuant to which the interest is to

be held by the transferee, including a detailed statement of

the interest of each person who is to have any interest

therein. The corporation shall file with the appropriate

commission one of each duplicate affidavits.

(b) If, after the filing of any affidavit required to be

filed, there shall be any change in the status of any affiant

with respect to any of the matters set forth in subsection (a)

(1) of the affidavit filed, the affiant shall file with the

corporation with which his affidavit was so filed a new

affidavit, executed by him in duplicate, setting forth the

change of status and the corporation shall file one of these

affidavits with the appropriate commission.

or of the interest of any person having an interest of 5% or

more in any corporation, or any new interest of 5% or more shall

be created therein, without a transfer as provided, the record

owner of the stock, and each person whose interest has been

attempted to be changed or created, shall file with the

corporation which issued the stock, in duplicate, affidavits as

provided by subsection (a)(1) and (2), except that these

affidavits need not include the matter referred to in subsection

(a) unless then required pursuant to subsection (b) and one copy

thereof shall be filed by the corporation with the appropriate

commission.

(d) If the appropriate commission determines that it is

inconsistent with the public interest, convenience, or

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necessity, or with the best interest of racing generally, that

any person continue to be a stockholder of record, or the

beneficial owner of any interest in stock standing in the name

of another in any licensed corporation or of any corporation

which leases to such licensed corporation the track at which it

conducts pari-mutuel horse racing or which owned 25% or more of

the stock of the licensee, the appropriate commission shall have

full power and authority to order each stockholder or beneficial

owner to dispose of his stock or interest within a period of

time to be specified by the appropriate commission, which period

the appropriate commission shall have full power to extend.

(e) If the commissions shall make any order or direction as

provided in subsection (d), the person aggrieved shall be given

notice of the time and place of a hearing before the appropriate

commission, at which time the appropriate commission will hear

the person in reference thereto.

Section 205. Number of horse racing corporations.

(a) No more than six corporations shall be licensed by the

State Horse Racing Commission to conduct a pari-mutuel meet or

meets. No corporation licensed under this act to conduct harness

racing with pari-mutuel wagering or under the act of December

22, 1959 (P.L.1978, No.728), referred to as the Pennsylvania

Harness Racing Law, shall be licensed to conduct thoroughbred

horse racing with pari-mutuel wagering.

(b) No more than five corporations shall be licensed by the

State Harness Racing Commission to conduct a pari-mutuel meet or

meets. No corporation licensed under this act to conduct

thoroughbred horse racing with pari-mutuel wagering or under the

act of December 11, 1967 (P.L.707, No.331), referred to as the

Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to

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conduct harness horse racing with pari-mutuel wagering.

Section 206. Responsibilities of the Department of Revenue.

The Department of Revenue is charged with the financial

administration of pari-mutuel wagering under this act, as

supplemented by the rules and regulations of the commissions.

The Department of Revenue shall have authority to prescribe the

forms and the system of accounting to be employed, and through

its representatives shall, at all times, have power of access

to, and examination of, any equipment relating to such wagering.

Section 207. Allocation of racing days.

(a) Up to 125 but no less than 25 racing days shall be

allocated to each licensed corporation conducting thoroughbred

horse race meetings in any calendar year; except, that upon

request, the State Horse Racing Commission may grant up to an

additional 25 racing days over the 125 days to a licensed

corporation in each calendar year, if racing meet schedules can

accommodate these extra days. Whenever two or more corporations

licensed to conduct racing at the same facility apply to the

State Horse Racing Commission for an allocation of racing days

at the same facility, the commission shall allocate the racing

days in the following manner:

(1) If there is an agreement between the licensed

corporations as to the allocation of racing days then as

provided for therein.

(2) If there is no agreement between the licensed

corporations as to the allocation of racing days, then

equally between them.

(b) No more than 125 racing days shall be allocated to each

licensed corporation conducting harness horse race meetings in

any calendar year. Every corporation shall hold its license

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under the provisions of section 209. The State Harness Racing

Commission shall allocate the racing days in accordance with the

following guidelines:

(1) A licensed corporation that has an ownership

interest in the facility at which the racing days are to be

conducted shall be granted up to 125 racing days in any

calendar year upon request to the State Harness Racing

Commission. The State Harness Racing Commission shall grant

all racing days requested by licensed corporations described

in this paragraph before any other racing days are granted to

any other licensed corporation that desires to conduct a meet

at the same facility owned in part or in whole by a licensed

corporation that also desires to conduct a meet there.

(2) Whenever one or more licensed corporations that have

an ownership interest in the facility at which the racing

days are to be conducted apply to the State Harness Racing

Commission for an allocation of racing days, the State

Harness Racing Commission shall allocate an equal number of

racing days to each licensed corporation or to each licensed

corporation based upon an agreement between the licensed

corporations as to the allocation of racing days.

(3) Upon request the State Harness Racing Commission may

grant up to an additional 25 racing days over the 125 racing

days to a licensed corporation in each calendar year, and the

commission may grant up to 50 additional days of racing if

that corporation is the only corporation operating at the

facility, if racing meet schedules can accommodate these

extra racing days.

(4) For purposes of this section, an ownership interest

shall mean that a licensed corporation directly or through a

20150SB0352PN0505 - 20 -

parent or subsidiary has at least 35% equity interest in the

track facility at which it conducts harness horse race

meetings or is the primary tenant at such facility. For

purposes of this subsection, a primary tenant shall be that

licensed corporation, if any, which is a tenant conducting

horse race meetings at a track facility at which no licensed

corporation conducting horse race meetings has directly or

through a parent or subsidiary at least a 35% equity interest

in such facility, and if there is more than one such tenant

at any such facility during the year prior to the year for

which dates are requested, then among or between such tenants

the primary tenant, if any, shall be designated by agreement

among or between those licensed corporations which propose to

conduct horse race meetings at the said track facility during

the year for which dates are requested.

Department of Revenue within 20 days after the allocation of

racing days to licensed corporations the following information:

(1) the names and addresses of the corporations;

(2) the names and addresses of the presidents and

general managers of the corporations;

(3) the names and locations of the facilities where the

racing days are to be conducted;

(4) the number of racing days allocated to each

corporation; and

(5) a numbered list of each racing day assigned to each

calendar day of the year for the purposes of taxation.

(d) If a racing day is cancelled by a licensed corporation

for reasons beyond its control, the appropriate commission shall

grant the licensed corporation the right to conduct that racing

20150SB0352PN0505 - 21 -

day in the same or the next ensuing calendar year, if schedules

permit. The racing day for purposes of taxation under section

222 shall be at the lowest tax rate at which the licensed

corporation conducted a racing day during that year.

Section 208. State admissions taxes.

(a) Every corporation holding a thoroughbred horse race

meeting under this act shall collect, in addition to the

admission price of tickets sold or otherwise disposed of, for

each meeting held by the corporation, a tax equivalent to 15% of

the admission price, or 15¢ whichever is greater. In case of

failure to collect the tax, the tax shall be imposed upon the

corporation holding the race meeting. The tax shall be paid to

the Department of Revenue within ten days of collection. The

amounts collected shall be paid into the State Treasury to the

credit of the State Racing Fund. Before any corporation liable

to pay the tax shall hold any race meeting, or exercise any of

the powers conferred by this act, the corporation shall pay all

taxes due, and shall file a statement with the Department of

Revenue containing the name of the place and stating the time

when the races are to be held. Nothing in this section shall

apply to a race meeting conducted by any state, county or other

agricultural association. Retroactive to September 1, 1981 and

thereafter, the admission tax shall be decreased to a tax

equivalent to 10% of the admission price. Then on September 1,

1982 and thereafter, the admission tax shall be decreased to a

tax equivalent to 5% of the admission price.

(b) Every corporation holding a harness horse race meeting

shall collect, in addition to the admission price of tickets

sold or otherwise disposed of, for each such meeting held by the

corporation, a tax equivalent to 5% of the admission price. In

20150SB0352PN0505 - 22 -

case of failure to collect the tax, the tax shall be imposed

upon the corporation holding the race meeting. The tax shall be

paid to the Department of Revenue within ten days after the

close of each race meeting. The amounts collected shall be paid

into the State Treasury to the credit of the State Racing Fund.

Before any corporation liable to pay the tax shall hold any race

meeting, or exercise any of the powers conferred by this act,

the corporation shall pay all taxes due and file a statement

with the Department of Revenue containing the name of the place

and stating the time when the races are to be held. Nothing in

this section shall apply to a race meeting conducted by any

state, county or other agricultural association.

examine the books and records of the corporation conducting any

horse race meeting and may hear testimony and take proofs and

material for its information, or from any other data which shall

be satisfactory to it. The Department of Revenue may order and

state an account for the tax due the State, together with the

expense of such examination. A penalty of 5% and interest at the

rate of 1% per month from the due date to the date of payment of

the tax shall be payable in case any tax imposed by this section

is not paid when due.

Section 209. Licenses for horse race meetings.

(a) Any corporation desiring to conduct horse race meetings

at which pari-mutuel wagering shall be permitted may apply to

the appropriate commission for a license. The license gives its

holder the privilege to conduct horse race meetings at which

pari-mutuel wagering is permitted. The license does not give its

holder a property right. If, in the judgment of the appropriate

commission, the public interest, convenience or necessity will

20150SB0352PN0505 - 23 -

be served and a proper case for the issuance of the license is

shown, the appropriate commission may issue the license. The

license shall remain in effect so long as the licensed

corporation complies with all conditions, rules and regulations

and provisions of this act. A commission may revoke or suspend

the license of any corporation, if the commission finds by a

preponderance of the evidence that the corporation, its

officers, employees or agents, has not complied with the

conditions, rules, regulations and provisions of this act and

that it would be in the public interest, convenience or

necessity to revoke or suspend the license. A license is not

transferable.

(b) Every license shall be issued upon the following

conditions:

(1) A horse race meeting at which pari-mutuel wagering

is conducted is subject to the supervision of and to the

reasonable rules and regulations prescribed by the

appropriate commission.

(2) Pari-mutuel wagering conducted is also subject to

the supervision of and to the reasonable regulations

prescribed by the Department of Revenue. Any license may also

be issued upon any other condition that the appropriate

commission determines to be necessary or desirable to insure

that the public interest, convenience or necessity is served.

(3) The corporation can prove by a preponderance of the

evidence that it has obtained the use of a facility to

conduct horse race meetings. The proof may be demonstrated by

documentation of an ownership interest in the facility or by

a written lease for use of the facility. For purposes of this

paragraph, an ownership interest shall mean that a licensed

20150SB0352PN0505 - 24 -

corporation directly or through a parent or subsidiary has at

least a 35% equity interest in the track facility at which it

conducts horse race meetings or is the primary tenant at such

facility. For purposes of this paragraph, a primary tenant

shall be that licensed corporation, if any, which is a tenant

conducting horse racing meetings at a track facility at which

no licensed corporation conducting horse race meetings has

directly or through a parent or subsidiary at least a 35%

equity interest in such facility, and if there is more than

one such tenant at any such facility during the year prior to

the year for which dates are requested, then among or between

such tenants the primary tenant, if any, shall be designated

by agreement among or between those licensed corporations

which propose to conduct horse race meetings at the said

track facility during the year for which dates are requested.

(4) The corporation posts, in favor of the appropriate

commission, a bond or irrevocable letter of credit in an

amount equal to the sum of the corporation's average weekly

payment, during active racing, into the State Racing Fund, as

determined by the appropriate commission on the basis of the

immediately preceding year, during the year for which dates

are requested.

(5) The licensed corporation prints in its racing

programs the procedure for filing a complaint with the

appropriate commission.

prescribed by the appropriate commission and shall contain

information, material or evidence as the appropriate commission

may require. The term "racing week" shall include Sunday at the

discretion of the licensed corporation.

20150SB0352PN0505 - 25 -

(d) In considering an application for a license to a

corporation, the commissions may give consideration to the

number of licenses already granted. No license shall be granted

to any track located within ten miles of a State, county or

other political subdivision fair conducting horse racing unless

the association, corporation, society, political subdivision or

State agency conducting the fair shall affirmatively waive

objection to the issuance of the license for dates within the

period.

(e) The commissions may refuse to grant, may revoke, or may

suspend a license to a corporation, if it shall determine that:

(1) Any officer, director, member or stockholder of the

corporation applying for a license or of any corporation

which owns stock in or shares in the profits, or participates

in the management of the affairs of the applicant, or which

leases to the applicant the track where it shall operate:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has engaged in bookmaking or other forms of

illegal gambling;

(iii) has been found guilty of any fraud or

misrepresentation in connection with racing or breeding;

(iv) has been guilty of any violation or attempt to

violate any law, rule or regulation of any racing

jurisdiction, for which suspension from racing might be

imposed in such jurisdiction; or

(v) has violated any rule, regulation or order of

the commissions.

(2) The experience, character or fitness of any officer,

director or stockholder of any of the corporations is such

20150SB0352PN0505 - 26 -

that the participation of the person in horse racing or

related activities would be inconsistent with the public

interest, convenience or necessity or with the best interests

of racing. If the commission determines that the interest of

any stockholder referred to in this paragraph or in paragraph

(1) is insufficient to affect adversely the conduct of pari-

mutuel horse racing by the corporation in accordance with the

provisions of this act, the commissions may disregard the

interest in determining whether or not to grant a license to

the corporation.

(3) The applicant is not the owner or the lessee of the

track at which it will conduct pari-mutuel horse racing under

the license applied for, or that any person, firm,

association or corporation other than the applicant shares,

or will share, in the profits of the applicant, other than by

dividends as a stockholder, or participates, or will

participate in the management of the affairs of the

applicant.

(4) The corporation does not have the use of a facility

to conduct horse race meetings. Such use must be proved by a

preponderance of the evidence. The proof may be demonstrated

by documentation of an ownership interest in the facility or

by a written lease for use of the facility.

(5) A licensed corporation does not have proof of a

written lease of a facility to conduct horse race meetings.

Under this paragraph, the appropriate commission may suspend

a license for a period of two years. After the expiration of

the suspension, the appropriate commission may then revoke

the license, if the licensed corporation has failed to

contract for a facility at which to conduct horse race

20150SB0352PN0505 - 27 -

meetings.

(6) A licensed corporation has commingled horsemen's

funds in violation of section 235(c) or has refused to place

on deposit a letter of credit under section 236.

(f) The commissions shall also have power to refuse to

grant, revoke or suspend a license:

(1) To any corporation, the charter or certificate of

incorporation of which shall fail to contain a provision

requiring any stockholder, upon written demand of the

corporation, to sell his stock to the corporation at a price

to be fixed by the appropriate commission, provided the

demand be made pursuant to written direction of the

appropriate commission and from the date of the making of the

demand prohibiting the transfer of the certificate of stock

except to the corporation.

(2) To any corporation which, having been a licensee,

has failed, in the opinion of the appropriate commission, to

properly maintain its track and plant in good condition or

has failed to make adequate provision for rehabilitation and

capital improvements to its track and plant.

(g) Pending final determination of any question under this

section, the commissions may issue a temporary license upon such

terms and conditions as they see fit to effectuate the

provisions of this act.

(h) The commissions shall have power to direct that every

certificate of stock of a licensed corporation shall bear a

legend, plainly and prominently imprinted upon the face of the

certificate, reading: "This certificate of stock is transferable

only subject to the provisions of the 'Race Horse Industry

Reform Act'." The provisions of this subsection shall not apply

20150SB0352PN0505 - 28 -

to stock heretofore issued by a licensed corporation under the

provisions of the act of December 11, 1967 (P.L.707, No.331), as

amended, and referred to as the Pennsylvania Thoroughbred Horse

Racing Law or of the act of December 22, 1959 (P.L.1978,

No.728), as amended, and referred to as the Pennsylvania Harness

Racing Law.

Section 210. Shareholders.

(a) Each licensed corporation shall, once a year, provide

the appropriate commission with a complete list of all its

shareholders, indicating the number of shares by each

shareholder.

(b) It shall be the duty of each licensed corporation within

ten days after any transfer of stock comprising an interest of

5% or more in such licensee, to notify the appropriate

commission of the transfer.

corporation to a shareholder having a 5% or greater interest

shall have noted on the face thereof that the person whose name

is indicated as the owner of such shares of stock by the

certificate is the sole and absolute owner, and that he is not

holding such shares of stock or any portion of such shares of

stock represented by the certificate in trust for any person,

partnership, firm or corporation who or which is prohibited from

owning such shares of stock. If any of such shares of stock

represented by a certificate of stock are held subject to the

terms of either an inter vivos or testamentary trust for the

benefit of any person who could lawfully own such stock in his

own name, the fact shall be noted on the face of the certificate

and a copy of the instrument which created the trust shall be

attached. A duplicate copy of the instrument which created the

20150SB0352PN0505 - 29 -

trust shall be filed with the appropriate commission.

(d) No property rights shall exist in any shares of stock of

any licensed corporation which are held in trust contrary to the

provisions of this section and the same shall be forfeited to

the Commonwealth after reasonable notice and upon hearing and

proof thereof in any suit instituted by the Attorney General of

Pennsylvania. Upon it being established that the stock is

subject to forfeiture by legal adjudication, the appropriate

commission shall sell the forfeited stock at public sale, upon

proper notice, to the highest bidder. The proceeds from the sale

shall be deposited in the General Fund of the Commonwealth of

Pennsylvania.

(e) As used in this section, the term "licensed corporation"

shall include any licensed corporation as defined in section 102

and also any firm, association or corporation which owns or

leases to any licensed association or corporation a race track

at which pari-mutuel racing is conducted, or any firm,

association or corporation which participates in the management

of any such licensed corporation.

Section 211. Prohibition of interest by public officers, public

employees and party officers in pari-mutuel racing

activities.

(a) No public officer, public employee or party officer

shall:

(1) hold any license to conduct a pari-mutuel meet from

the commissions;

(2) own or hold, directly or indirectly, any proprietary

interest, stock or obligation of any firm, association or

corporation:

(i) which is licensed by the commissions to conduct

20150SB0352PN0505 - 30 -

pari-mutuel racing;

(ii) which is licensed to conduct its occupation,

trade or business at race tracks at which pari-mutuel

race meets are conducted;

(iii) which owns or leases to any licensed

association or corporation a race track at which pari-

mutuel racing is conducted; or

(iv) which participates in the management of any

licensed corporation conducting pari-mutuel racing; and

(3) hold any office or employment with any firm,

association or corporation specified in paragraph (2); or

(4) sell or be a member of a firm or own 10% or more of

the stock of any corporation which sells any goods or

services to any firm, association or corporation specified in

paragraph (2).

The provisions of paragraph (3) shall not apply to a public

employee other than a police officer or paid employee of a

police department, sheriff's office, district attorney's office

or other law enforcement agency so long as such employment of

employees of a political subdivision may be prohibited by

ordinance, resolution or local law.

(b) A knowing and willful violation of this section shall be

cause for removal from public office, public employment or party

office. In any such case, the public officer, public employee or

party officer, violating this section, shall be removed from

office by appropriate authority having the power of removal.

shall have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

"Party officer." The following members or officers of any

20150SB0352PN0505 - 31 -

political party:

(1) a member of a national committee;

(2) a chairman, vice-chairman, secretary, treasurer or

counsel of a State committee or member of the executive

committee of a State committee;

(3) a county chairman, vice-chairman, counsel, secretary

or treasurer of a county committee; or

(4) a city chairman, vice-chairman, counsel, secretary

or treasurer of a city committee.

"Public employee." Every person employed by the Commonwealth

or any political subdivision thereof.

"Public officer." Every person elected to any public office

of the Commonwealth or any political subdivision thereof.

(d) The commissions shall have the power to refuse to grant

or to revoke or suspend a license of any firm, association or

corporation which aids or knowingly permits or conspires to

permit any public officer, public employee or party officer to

acquire or retain any interest prohibited by this section.

(e) The provisions of this section shall allow any person

other than members, employees or appointees of the commissions

to own and to be licensed to race a horse at any licensed race

track.

Section 212. Officials at horse race meetings.

(a) At all thoroughbred horse race meetings licensed by the

State Horse Racing Commission, qualified judges and starters

shall be approved by the commission. These officials shall

enforce the rules and regulations of the State Horse Racing

Commission and shall render written reports of the activities

and conduct of such race meetings to the State Horse Racing

Commission. The compensation of these judges and starters shall

20150SB0352PN0505 - 32 -

be paid by the corporation conducting the race meeting.

(b) At all harness race meetings licensed by the State

Harness Racing Commission, qualified judges and starters shall

be approved by the commission. No person shall be approved as a

judge or starter unless he is licensed by the United States

Trotting Association as a duly qualified pari-mutuel race

meeting official. The officials shall enforce the rules and

regulations of the State Harness Racing Commission and shall

render regular written reports of the activities and conduct of

the race meetings to the State Harness Racing Commission. The

compensation of the presiding judge and two associate judges at

each race track shall be fixed and paid by the State Harness

Racing Commission. The commission shall adopt a selection

process to approve the appointment of these officials. The

licensed corporations shall participate in this selection

process for approval of these officials.

Section 213. Licenses for commissioners, employees and

participants at horse race meetings.

(a) Each commission shall license trainers, jockeys,

drivers, persons participating in thoroughbred and harness horse

race meetings, horse owners and all other persons and vendors

exercising their occupation or employed at thoroughbred and

harness horse race meetings. The license gives its holder a

privilege to engage in the specified activity, but the license

does not give its holder a property right. Licenses are not

transferable. Each commission shall fix the license fees to be

paid by persons or corporations so licensed; provided, however,

that such occupational license fees shall not exceed $100. All

fees shall be paid to the commissions and by them paid into the

State Treasury through the Department of Revenue and credited to

20150SB0352PN0505 - 33 -

the State Racing Fund. The application shall be in the form and

contain the information as each commission may require.

Applicants must have their fingerprints taken or have

fingerprint records on file with the respective commission, the

Federal Bureau of Investigation, the State Police or any other

organization recognized by the respective commission as part of

the background investigation. Each commission may exempt

applicants from the fingerprint requirement for positions not

related to the care or training of horses, racing, wagering,

security or the management operations of the racing corporation

or racetrack. All licenses shall be issued for three-year terms

and shall be automatically renewed, upon payment of the required

fee, unless subsection (f) applies. Each commission may

establish a temporary license and fee valid for four months

within a twelve-month period. No applicant, however, may receive

more than one temporary license within 12 months of the issuance

of his or her preceding temporary license. The commissions may

also stagger the termination dates and renewal dates of the

licenses, in order to process and issue the licenses in an

orderly manner that provides for approximately one-third of the

licenses to be renewed each year. The commissions shall fix the

manner by which licenses are processed and issued by rule or

regulation.

(b) All commissioners and all employees, agents and

representatives of the commissions shall be licensed under this

act. There shall be no fee for this license. The commissions

shall fix by rule or regulation the manner in which these

licenses under this subsection shall be processed and issued.

and general fitness of the applicant are such that the

20150SB0352PN0505 - 34 -

participation of the person in horse race meets is consistent

with the public interest, convenience and necessity, and with

the best interests of racing generally in conformity with the

purposes of this act, it may grant a license.

(d) The commissions may refuse to issue a license under this

section, if they shall find that the applicant:

(1) Has been convicted of a crime involving moral

turpitude.

(2) Has engaged in bookmaking or other form of illegal

gambling.

(3) Has been found guilty of any fraud or

misrepresentation in connection with racing or breeding.

(4) Has been found guilty of any violation or attempt to

violate any law, rule or regulation of racing in any

jurisdiction, for which suspension from racing might be

imposed in that jurisdiction.

(5) Has violated any rule, regulation or order of the

commissions.

(d.1) The commissions shall refuse to issue a license under

this section if they shall find that the applicant has been

convicted of an offense relating to fixing races. This

subsection shall not apply if the conviction is overturned on

appeal under the laws of the jurisdiction of the original

finding.

(e) Each commission shall have the right to inspect all

contracts between licensed corporations and vendors for goods

and services. Each commission shall require by rule or

regulation that vendors disclose to the appropriate commission

all principal officers and a description of their interests in

the vendors' business. Failure to properly disclose this

20150SB0352PN0505 - 35 -

information shall constitute grounds to deny, to revoke or to

suspend any vendor's license issued under the provisions of this

act.

(f) The commissions may suspend, refuse to renew or revoke a

license issued under this section, if it shall determine that:

(1) The applicant or licensee:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has engaged in bookmaking or other form of

illegal gambling;

(iii) has been found guilty of any fraud in

connection with racing or breeding;

(iv) has been guilty of any violation or attempt to

violate any law, rule or regulation of any racing

jurisdiction for which suspension from racing might be

imposed in that jurisdiction;

(v) has violated any rule, regulation or order of

the commissions; or

(vi) has been convicted of a felony offense related

to the use, possession or sale of drugs or alcohol.

(2) That the experience, character or general fitness of

any applicant or licensee is such that the participation of

the person in horse racing or related activities would be

inconsistent with the public interest, convenience or

necessity or with the best interests of racing.

(f.1) The commissions shall suspend, refuse to renew or

revoke a license issued under this section if it shall determine

that the applicant or licensee has been convicted of an offense

related to fixing races unless the conviction has been

overturned on appeal under the laws of the jurisdiction of the

20150SB0352PN0505 - 36 -

original finding.

(g) Pending final determination of any question under this

section, the commissions may issue a temporary license upon such

terms and conditions as they may deem necessary or proper to

effectuate the provisions of this act.

(h) The commissions may suspend a license under subsection

(f) pending a hearing on the matter. The hearing must take place

within ten days of the suspension.

(i) The commissions shall not grant licenses to citizens of

states that do not grant licenses to citizens of this

Commonwealth on the basis of in-state preference.

Section 214. Power of commissions to impose fines and

penalties.

(a) In addition to their power to suspend or revoke licenses

granted by them, the commissions are authorized and empowered to

impose fines upon any corporation, association or person

participating in any way in any horse race meet at which pari-

mutuel wagering is conducted, other than as a patron and whether

licensed by the commissions or not, for a violation of any

provision of this act or the rules and regulations promulgated

by the commissions, not exceeding $5,000 for each violation,

which fines shall be paid into the State Treasury through the

Department of Revenue and credited to the General Fund.

Following exhaustion of any administrative remedies promulgated

by the commissions for such purpose, the action of the

commissions in imposing any monetary fine shall be subject to

appeal to the Commonwealth Court and as approved by that court

system, or if no court appeal is taken, then as imposed, may be

collected in an action of assumpsit.

(b) No officer or employee of a licensed corporation or

20150SB0352PN0505 - 37 -

their spouses, parents, fathers-in-law, mothers-in-law, sons,

daughters, sons-in-law or daughters-in-law shall have any direct

or indirect interest in a race horse that is participating in a

race at a meet at which such person or heretofore-mentioned

relative holds any interest in the licensed corporation

conducting the meet and/or the track facility. An officer or

employee of a licensed corporation or their spouses, parents,

fathers-in-law, mothers-in-law, sons, daughters, sons-in-law or

daughters-in-law may have an interest in a race horse and enter

it at meets that are conducted by licensed corporations or at

race tracks in which such a person or heretofore-mentioned

relative holds no direct or indirect interest. Each commission

shall impose a fine or penalty upon any person for violation of

this subsection as provided for under subsection (a). For

purposes of this subsection an interest shall not include:

(1) any breeder's fund award as a result of a horse

being a registered Pennsylvania-bred thoroughbred horse under

the provisions of section 223; and

(2) any interest in a licensed corporation or track

facility that was held by a person, partnership, association

or corporation on or before January 1, 1988.

Section 215. Security personnel; powers and duties; penalty.

(a) The commissions and any licensed corporations are

authorized and empowered to employ persons as security

personnel. These persons shall possess the powers and duties of

a peace officer with respect to the enforcement of the criminal

laws of the Commonwealth within the race meeting grounds or

enclosure. The designated persons are also authorized to

interrogate and eject from the race meeting grounds or enclosure

any persons suspected of violating any rule or regulation

20150SB0352PN0505 - 38 -

promulgated by the commissions. The commissions may refuse

admission to and eject from enclosure of the race track operated

by any licensed corporation, any person whose presence there is,

in the judgment of the commission, inconsistent with the orderly

or proper conduct of a race meeting or whose presence or conduct

is deemed detrimental to the best interest of horse racing. The

action of the commissions in refusing any person admission, or

ejecting him from, a race meeting ground or enclosure shall not

be because of the race, creed, color, sex, national origin or

religion of that person and shall be reviewable by the

Commonwealth Court.

(b) Except as provided for in subsections (c) and (d), any

licensed corporation may refuse admission to and eject from the

enclosure of the race track operated by any association any

person except that no person shall be refused admission or be

ejected because of the race, color, creed, sex, national origin

or religion of that person.

from the enclosure of the race track operated by the

corporation, any person licensed by the commissions under

section 213, employed at his occupation at the race track, whose

presence there is deemed detrimental to the best interests of

horse racing, citing the reasons for that determination. The

action of the corporation in refusing the person admission to or

ejecting him from a race meeting ground or enclosure shall have

immediate effect. The person refused admission or ejected shall

receive a hearing before the appropriate commission, if

requested, pursuant to rules and regulations adopted for that

purpose by the appropriate commission and a decision rendered

following that hearing.

20150SB0352PN0505 - 39 -

(d) A licensed corporation may not refuse admission to or

eject a law enforcement official while that official is actually

engaged in the performance of official duties.

(e) A person found within a race track enclosure after

having been refused admission thereto or ejected therefrom

shall, upon conviction thereof in a summary proceeding, be

sentenced to pay a fine not exceeding $300 or undergo

imprisonment for a term not exceeding 90 days, or both.

Section 216. Interstate simulcastings of horse races.

Each commission may, upon request by any licensed

corporation, grant permission for electronically televised

simulcasts of horse races to be operated by the licensed

corporation at the race track enclosure where a horse race

meeting is being conducted during, between, before or after

posted races for that racing day. The posted races for that

racing day shall include a minimum of eight live races, except,

at thoroughbred tracks on the one day designated as Breeders'

Cup Event Day, there shall be a minimum of five live races. The

simulcasts shall be limited to horse races conducted at

facilities outside this Commonwealth and televised to race track

enclosures within this Commonwealth. The simulcasts shall also

be limited to thoroughbred races designated as Grade I stakes,

or the international equivalent thereto, with purses of at least

$100,000; standard bred races with purses of at least $100,000;

and other stakes races which have, in the opinion of the

appropriate commission, significant value to the Pennsylvania

racing industry. Cross simulcasting of the aforementioned races

shall be permitted as long as the particular race is available

to all race tracks in the Commonwealth which are operating live

racing that day. All simulcasts of horse races from outside this

20150SB0352PN0505 - 40 -

Commonwealth shall also comply with the provisions of the

Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001

et seq. All forms of pari-mutuel wagering as described under

section 221 shall be allowed on horse races to be televised by

simulcasting. Each commission may promulgate rules or

regulations to regulate the wagering and the operation of these

horse races. All moneys wagered by patrons on these horse races

shall be computed in the amount of money wagered each racing day

for purposes of taxation under section 222.

Section 216.1. Televised international and interstate

simulcastings of horse races.

(a) Each commission may, upon request by a licensed

corporation, grant permission to maintain common pari-mutuel

pools on international and interstate races transmitted to and

from the racetrack enclosures within this Commonwealth, such

licensed corporation to be designated as the "host licensee."

The permission to act as host licensee for international and

interstate simulcast races shall be limited to licensed

corporations:

(1) which have a live racing agreement with a horseman's

organization representing a majority of owners and trainers

at the facility where the licensed corporation conducts

racing dates;

(2) which have scheduled 95% of the total number of

horse or harness racing days scheduled in 1986 by it or its

predecessor at the facility where the licensed corporation

conducts racing dates; and

(3) which, subject to actions or activities beyond the

control of the licensee, conduct not less than eight live

races per race date during each meet at the facility where

20150SB0352PN0505 - 41 -

the licensed corporation conducts racing dates, except for

thoroughbred tracks on the day designated as Breeder's Cup

Event Day, when the facility shall hold a minimum of five

live races.

A horseman's organization representing a majority of owners and

trainers at a racetrack may consent to waiving or modifying the

provisions pertaining to the required number of racing days and

races per day scheduled by a licensed corporation at that

racetrack.

(b) Cross simulcasting of the races described in subsection

(a) shall be permitted if all amounts wagered on the races in

this Commonwealth are included in common pari-mutuel pools. A

host licensee seeking permission to cross simulcast must obtain

approval from both the State Harness Racing Commission and the

State Horse Racing Commission. All simulcasts of horse races

shall also comply with the provisions of the Interstate Horse

Racing Act of 1978 (92 Stat. 1811, 15 U.S.C. § 3001 et seq.).

All forms of pari-mutuel wagering as described under section 221

shall be allowed on horse races to be televised by simulcasting.

Each commission may permit pari-mutuel pools in this

Commonwealth to be combined with pari-mutuel pools created under

the laws of another jurisdiction and may permit pari-mutuel

pools created under the laws of another jurisdiction to be

combined with pari-mutuel pools in this Commonwealth. Each

commission may promulgate rules or regulations to regulate

wagering on televised simulcasts.

these horse races shall be computed in the amount of money

wagered each racing day for purposes of taxation under section

222 and all thoroughbred races shall be considered a part of a

20150SB0352PN0505 - 42 -

thoroughbred horse race meeting and all harness races shall be

considered a part of a harness horse race meeting for purposes

of section 222(b)(5).

Section 217. Refunds.

(a) Money received by the commissions may, within one year

from receipts thereof, be refunded, to the party for whose

account the same were received, on proof satisfactory to the

commissions that:

(1) the moneys were in excess of the amount required by

law;

(2) the license for which application was made has been

refused by the commission;

(3) the moneys were received as a fine and the

commission has, after review, reduced the amount of the fine;

(4) upon appeal, the court reduced or remitted the fine

imposed and paid.

(b) Refunds shall, upon approval by the commission and after

approval by the Board of Finance and Revenue, be paid from any

moneys in the State Racing Fund.

Section 218. Place and manner of conducting pari-mutuel

wagering.

(a) Every licensed corporation shall provide during a horse

race meeting a place or places within the race track enclosure

at which the licensed corporation shall conduct the pari-mutuel

system of wagering by its patrons on the results of horse races

held at such meetings or televised to the race track enclosure

by simulcasting. The licensed corporation shall erect a sign or

board upon which shall be displayed the approximate straight

odds on each horse in any race; the value of a winning mutuel

20150SB0352PN0505 - 43 -

ticket, straight, place or show on the first three horses in the

race; the elapsed time of the race; the value of a winning daily

double ticket, if a daily double be conducted, and any other

information that the commissions may deem necessary for the

guidance of the general public. The commissions may prescribe,

by rule, the type and kind of equipment to be used for the

display of the foregoing information.

(b) Each commission may upon request by any licensed

corporation grant permission to the licensed corporation to

conduct a telephone account wagering system: Provided, however,

That all telephone messages to place wagers must be to a place

within the race track enclosure: And further provided, That all

moneys used to place telephone wagers be on deposit in an amount

sufficient to cover the wager at the race track where the

account is opened. Each commission may promulgate rules or

regulations to regulate telephone account wagering. All moneys

wagered as a result of telephone account wagering shall be

included in the amount wagered each racing day for purposes of

taxation under section 222 and shall be included in the same

pari-mutuel pools for each posted race. All telephone account

wagering systems shall be solely operated by the licensed

corporations.

wager by a direct telephone call from the holder of a telephone

wagering account. No person shall directly or indirectly act as

an intermediary, transmitter or agent in the placing of wagers

for a holder of a telephone wagering account. No person shall in

any manner place any wager by telephone to a facility in the

race track enclosure on behalf of a holder of a telephone

wagering account. Only the holder of a telephone wagering

20150SB0352PN0505 - 44 -

account shall place a telephone wager. Any person violating this

subsection shall be guilty of a misdemeanor of the first degree.

(d) A licensed corporation shall not accept a telephone

wager from, nor establish a telephone betting account for, any

person located in or residing in an area defined herein as the

primary market area of a race track, other than the race track

at which the licensed corporation is conducting a racing meet.

Nothing herein shall prohibit the licensed corporation from

accepting a telephone wager from, or establishing a telephone

betting account for, any person located in or residing in the

primary market area of the track at which the licensed

corporation is conducting a meet and, if two tracks share

primary market area as defined herein, both tracks shall have

equal rights to the market in the shared area.

(e) The primary market area of a race track, for purposes of

this act, is defined as that land area included in a circle

drawn with the race track as the center and a radius of 35 air

miles.

(f) The secondary market area of a racetrack, for purposes

of this act, is defined as that land area included in a circle

drawn with the racetrack as the center and a radius of 50 air

miles, but not including the primary market area of the

racetrack.

(g) Notwithstanding any other provisions of this act to the

contrary, upon approval by the appropriate commission, a

licensed corporation may establish one or more nonprimary

locations at which it shall conduct pari-mutuel wagering on all

horse races conducted by such licensed corporation and may

conduct pari-mutuel wagering on horse races conducted by another

licensed corporation, which horse races may be televised to the

20150SB0352PN0505 - 45 -

locations, or on horse races simulcast to the locations pursuant

to section 216, provided that:

(1) No licensed corporation may establish nonprimary

locations within the primary market area, as set forth in

subsection (e), of any racetrack other than a racetrack at

which the licensed corporation conducts race meetings.

Establishment of a nonprimary location by a licensed

corporation within the primary market area of a racetrack at

which the licensed corporation conducts race meetings shall

require approval of the commission regulating the activities

of such licensed corporation.

(2) Any licensed corporation may establish a nonprimary

location within the secondary market area of a racetrack as

set forth in subsection (f), provided that the nonprimary

location is approved by both the State Harness Racing

Commission and the State Horse Racing Commission.

(3) Any licensed corporation may establish a nonprimary

location in areas outside the primary and secondary market

areas of any racetrack, provided that the location is

approved by the commission which regulates the activities of

the licensed corporation establishing the location.

(4) Where a site is approved by the commission as a

nonprimary location established by more than one licensed

corporation, by agreement between the licensed corporations

and with the approval of the appropriate commission, one

licensed corporation may operate the pari-mutuel equipment

for one or more of the licensed corporations at that

location, but the location may still be considered a part of

the racetrack enclosure of each of the licensed corporations

approved to conduct pari-mutuel wagering at that location.

20150SB0352PN0505 - 46 -

(5) (i) Any licensed corporation, planning to establish

a nonprimary location, shall submit to the appropriate

commission a nonprimary location statement in a form

prescribed by the appropriate commission which specifies,

but is not limited to, the following:

(A) The number of permanent and part-time jobs

to be created at the proposed facility.

(B) The population of the town or municipality,

and surrounding area, where the proposed facility is

to be located.

any other nonprimary location or licensed racetrack.

(D) The type of seating to be provided,

including areas in the proposed facility where

patrons can handicap races.

(E) The total seating capacity of the proposed

facility.

(F) The size and number of toilet facilities.

(G) The availability of food and beverages,

including the number of tables, chairs, kitchen

facilities and concession stands.

(H) The number of available parking spaces.

(I) A description of the general demeanor of the

facility, including lighting, decor and plans for the

exterior of the facility.

(J) The number of betting windows and stand-

alone terminals to be provided.

(K) A description of the heating and air

conditioning units, the smoke removal equipment and

other climate control devices.

20150SB0352PN0505 - 47 -

(L) The total square feet of the proposed

facility.

(ii) The General Assembly recognizes the economic

importance of the horse racing industry in this

Commonwealth; and further recognizes that the

Pennsylvania horse racing industry is in a state of

decline. Therefore, it is the intent of the General

Assembly through this amendatory act to revitalize and

secure the economic future of the horse racing industry

and to encourage statewide economic development by

assisting in the development of nonprimary locations. It

is the further intent of the General Assembly through

this amendatory act that in no case shall the appropriate

commission approve a nonprimary location statement when

the sole purpose of that statement is to provide wagering

opportunities pursuant to this act; rather, the

appropriate commission shall only approve a nonprimary

location statement that plans for a public facility

offering not only wagering opportunities, but other

amenities, such as high class restaurants and quality

handicapping facilities, so that all or part of the

nonprimary facility will resemble the clubhouse

facilities of a racetrack. It is the further intent of

the General Assembly through this amendatory act to offer

the potential for the creation of jobs, not only in the

racing and wagering industry, but more particularly in

other service jobs, such as parking attendants, waiters

and waitresses, security guards, custodial workers and

food service personnel.

(iii) In determining whether the nonprimary location

20150SB0352PN0505 - 48 -

statement meets the legislative intent of this amendatory

act, the appropriate commission shall consider factors

which include, but are not limited to, the following:

(A) The purposes and provisions of this

amendatory act.

(B) The public interest.

(D) The impact on the local community.

(E) The potential for job creation.

(F) The quality of the physical facilities and

all services to be provided therein.

(iv) In considering whether the appropriate

commission will grant, suspend or revoke approval of

nonprimary locations, the provisions of section 209(f)(2)

shall apply. In connection therewith, the commission

shall annually conduct inspections of the primary

facility.

(v) The rights, duties and obligations of the

appropriate commission, as set forth in this amendatory

act, shall apply to nonprimary locations and any

employees or vendors of the licensed corporation

establishing the nonprimary location.

(6) (i) In addition to the requirements of paragraph

(10), any licensed corporation which is authorized to

conduct racing at any primary racetrack location at which

there has not been, in the previous calendar year, a

minimum of 142 days of live racing shall not be eligible

to establish nonprimary locations outside its primary

market area and shall only be eligible to establish

nonprimary locations within its primary market area

20150SB0352PN0505 - 49 -

according to the following schedule.

Year Number of

live racing

days

conducted

Number of days

in subsequent

year permitted

to operate

nonprimary

locations within

primary market

area

Number of

live racing

days

conducted

Number of days

in subsequent

year permitted

to operate

nonprimary

locations

within primary

market area

1988 50 365

1989 69 365 Under 69 307

1990 88 365 Under 88 259

1991 107 365 Under 107 191

1992 126 365 Under 126 133

1993 142 365 Under 142 75

(ii) Notwithstanding the chart contained in

subparagraph (i), if any such licensed corporation

schedules 69 or more racing days in calendar year 1989,

it may, upon approval of the appropriate commission,

establish nonprimary locations within its primary market

area for that calendar year.

(7) (i) The licensed corporation authorized to hold

race meetings at a primary racetrack location at which

more than one license is so authorized may be granted up

to two nonprimary locations by the appropriate

commission, up to a maximum of four per primary racetrack

location. The licensed corporation authorized to hold

race meetings at a primary racetrack location at which

there is only one such licensed corporation so authorized

may be granted up to three nonprimary locations.

20150SB0352PN0505 - 50 -

(ii) In addition to the nonprimary locations

authorized by subparagraph (i), during each of the

calendar years 1989 and 1990, the appropriate commission

may approve no more than one additional nonprimary

location per primary racetrack location, for one licensed

corporation authorized to conduct racing at the primary

racetrack location.

(iii) The General Assembly may, at any time, stop

the further approval of any nonprimary locations. The

State Harness Racing Commission and the State Horse

Racing Commission shall not have the authority to approve

any greater number of nonprimary locations after December

31, 1990, unless further authorized by the General

Assembly.

(iv) It shall be the duty of both the State Harness

Racing Commission and the State Horse Racing Commission

to annually report to the General Assembly on the effect

of nonprimary locations on such factors as the local

economy, the public interest and the integrity of live

racing, and make suggestions and recommendations.

(8) (i) Moneys wagered at all primary and nonprimary

locations pursuant to this act shall be included in

common pari-mutuel pools. All money wagered by patrons on

these races shall be computed in the amount of money

wagered each racing day for purposes of taxation under

section 222. The licensed corporation conducting the race

meeting and maintaining the pari-mutuel pools shall

maintain accurate records of the amount wagered in each

pool from every primary and nonprimary location.

(ii) The retained moneys as provided for in section

20150SB0352PN0505 - 51 -

222(e) shall be calculated for each location where pari-

mutuel wagering is being conducted. If wagering has taken

place at a nonprimary location where the wagering is

conducted by a licensed corporation other than the

licensed corporation conducting the race meeting, the

licensed corporation conducting the race meeting shall

retain any moneys to which it is entitled by agreement

between such licensed corporations and shall pay over the

balance of the retained moneys to the licensed

corporation conducting the wagering at the nonprimary

location.

(9) (i) A licensed corporation conducting a race

meeting on which pari-mutuel wagering is conducted at one

or more nonprimary locations shall distribute to the

horseman's organization representing a majority of owners

and trainers at its racetrack, or in accordance with the

practice of the parties, to be used for payment of purses

at that racetrack, an amount equal to not less than 6% of

the daily gross wagering handle on such races at a

nonprimary location: Provided, however, That when the

gross wagering handle on such races at any such

nonprimary location on a given day is less than $30,000,

the above-referenced percentage shall be not less than

3%, and when the gross wagering handle on such races at

any such nonprimary location on a given day is between

$30,000 and $75,000 inclusive, the above-referenced

percentage shall be not less than 4.75%: And provided

further, That whenever a nonprimary location is within

the primary market area of a licensed corporation other

than the licensed corporation conducting such races, the

20150SB0352PN0505 - 52 -

applicable percentage shall be distributed one-half to

the horseman's organization representing a majority of

owners and trainers at the racetrack, or in accordance

with the practice of the parties, where the race meeting

is being conducted to be used for the payment of purses

at that racetrack and one-half to such horseman's

organization, or in accordance with the practice of the

parties, at the racetrack within the primary market area

to be used for the payment of purses at that racetrack.

Nothing in this subparagraph shall prevent a licensed

corporation from agreeing to distribute amounts greater

than the percentages set forth in this subparagraph.

However, if no alternative agreement has been reached,

the total percentage paid for purses under this

subparagraph shall be in accordance with the minimum

percentages set forth in this subparagraph.

(ii) Notwithstanding subparagraph (i), or any other

provision in this act to the contrary, a nonprimary

location may be established within the primary market

area of a racetrack by agreement between the licensed

corporation and the horseman's organization representing

a majority of the owners and trainers at that racetrack

specifying the total percentage of handle wagered at such

nonprimary location to be distributed to that horseman's

organization, or in accordance with the practice of the

parties, to be used for the payment of purses at that

racetrack. If no such agreement is reached covering such

locations, the total percentage to be paid for purses

pursuant to this subparagraph shall be the same as that

applied to on-track wagering at the racetrack located

20150SB0352PN0505 - 53 -

within the primary market area.

(10) The provisions of section 234 relating to the

required number of racing days apply to this subsection.

However, a horseman's organization representing a majority of

owners and trainers at a racetrack may consent to waiving or

modifying the provisions as pertaining to the required number

of racing days scheduled by a licensed corporation at that

racetrack.

Section 218-A. Wagering at nonprimary locations.

(a) Notwithstanding any other provisions of this act to the

contrary, licensed corporations shall not be authorized to

provide live telecasts of races to any locations open to the

public which are not primary to or contiguous with the licensed

corporation's racetrack and at which telephone account wagering

is also conducted and shall not be permitted to establish or

utilize master accounts or transfer accounts for telephone

account wagering or to accept credit or debit card telephone

account wagers or any other form of electronic signal

transmissions unless:

(1) after completion of the 1986 racing season, such

activities are conducted pursuant to regulations adopted by

the appropriate racing commission and approved pursuant to

the act of June 25, 1982 (P.L.633, No.181), known as the

"Regulatory Review Act"; or

(2) during the 1986 racing season, any such activities

are limited to areas, accounts and credit arrangements for

which applications are submitted to the appropriate

commission prior to June 1, 1986, and which are subsequently

approved by the respective commission after appropriate

investigation and review.

20150SB0352PN0505 - 54 -

(b) Regulations authorizing activities subject to the

moratorium provided by subsection (a) shall not be published for

Notice Of Proposed Rulemaking until completion of the evaluation

as required by subsection (c). Nothing in this section shall be

construed to expand or enlarge any regulatory authority

otherwise conferred upon the respective commissions by this act.

the use of telephone account wagering, including the use of

master accounts, transfer accounts, credit or debit cards, any

other form of electronic signal transmission and live

telecasting to or from areas open to the public not primary to

or contiguous with a racetrack. The evaluation shall consider

whether such activities are in the public interest and are

beneficial to racing and shall recommend, if such activities are

deemed desirable by the commissions, appropriate rules and

regulations for the conduct of such activities: Provided, That a

licensed corporation shall not be permitted to conduct pari-

mutuel wagering at any location which is within the primary

market area of another licensed corporation, as defined in

section 102 and section 218(e). The evaluation shall also

recommend whether any enlargement or modification to the laws

regulating such activities is necessary or desirable. In

performing the evaluation, the commissions shall study in detail

experimental activities authorized by the commissions, including

an analysis of the impact of conducting such activities at each

experimental site approved by the commissions. The evaluation is

to be completed by October 31, 1986, with copies of the

commissions' report being forwarded, within two weeks of that

date, to the Governor, the President pro tempore of the Senate,

the Speaker of the House, the Chairman of the Senate State

20150SB0352PN0505 - 55 -

Government Committee and the Chairman of the State Government

Committee of the House of Representatives. The evaluation shall

include, but not be limited to, an investigation and study of

the following matters:

(1) Which laws permit or prohibit the use of telephone

account wagering in coordination with live telecasting to

public locations and the utilization of transfer accounts,

master accounts, credit or debit cards or other forms of

electronic signal transmissions for pari-mutuel wagering at

such locations.

(2) In situations where such activities occur at

premises licensed by the Liquor Control Board to serve

alcoholic beverages, whether such activities violate any

portion of the act of April 12, 1951 (P.L.90, No.21), known

as the "Liquor Code."

(3) The financial viability of live telecasting to

public locations, together with the use of telephone account

wagering, transfer accounts, electronic signal transmissions,

or credit or debit card wagering, including the benefits or

disadvantages for the commissions, the licensed racing

corporation, horsemen and the general public.

(4) The local and Statewide community, fiscal and social

impact of such wagering activities at public locations.

(5) An analysis of the commissions' ability to properly

regulate and control such wagering at public locations in

order to protect the public and the integrity of the racing

industry.

(6) The ability of the commissions to investigate the

background of individuals owning or having an interest in

premises upon which such wagering takes place.

20150SB0352PN0505 - 56 -

(7) Patron betting behavior and satisfaction or abuse of

telephone account wagering, transfer accounts, credit or

debit cards or other forms of electronic signal transmissions

for the purpose of pari-mutuel wagering.

(8) What types of promotional activities have taken

place by the racing corporation or particular wagering sites

to encourage such wagering and what types of promotional

activities are proper and appropriate.

(9) What types of reporting procedures and records have

been and should be required from the licensed racing

corporation and individual wagering sites so as to assure all

revenues are accounted for and winners names are filed with

the proper taxing authorities.

(10) What minimum requirements with regard to physical

structures, facilities, equipment, security and public health

and safety are necessary and appropriate for locations at

which such wagering occurs.

(d) As used in this section "public locations" are deemed to

be areas open to the public and shall include all types of

commercial establishments, whether open to the public at large

or any segment of the public.

Section 219. Books and records of pari-mutuel wagering.

Every corporation that conducts a horse race meeting at which

pari-mutuel wagering is authorized, shall keep books and records

so as to clearly show by separate record the total amount of

money contributed to every pari-mutuel pool. The Department of

Revenue or its authorized representative shall have access to

all books and records for the purpose of examining the same and

ascertaining whether the proper amount due to the State is being

paid by the licensed corporation.

20150SB0352PN0505 - 57 -

Section 220. Filing of certain agreements with the commissions.

Every corporation licensed to conduct horse race meetings at

which pari-mutuel wagering is permitted shall promptly after

entering any lease agreement concerning any concession, labor

management relation, hiring of designated classes of officers,

employees or contractors specified by the commissions or any

such other contract or agreement as the commissions may

prescribe, file with the appropriate commission a true and

correct copy, or an accurate summary, if oral.

Section 221. Retention percentages for pari-mutuel pools.

(a) Every licensed corporation shall distribute the moneys

in any pari-mutuel pool to the holders of winning tickets under

the following requirements:

(1) all tickets shall be presented for payment before

the first day of April of the year following the year of

their purchase; and

(2) seventeen percent of the moneys plus the breakage

from regular wagering pools shall be retained by the licensed

corporations for further distribution under section 222; or

(3) nineteen percent of the moneys plus the breakage

from regular wagering pools from licensed corporations whose

total deposits in all pari-mutuel pools averaged less than

$300,000 per racing day for their previous meeting at the

same facility; or

(4) twenty percent of the moneys plus the breakage from

the exacta, daily double, quinella and other wagering pools

involving two horses each racing day shall be retained by the

licensed corporations for further distribution under section

222; or

(5) at least 26% but no more than 35% of the moneys plus

20150SB0352PN0505 - 58 -

the breakage from the trifecta or other wagering pools

involving more than two horses in one or more races each

racing day shall be retained by the licensed corporations for

further distribution under section 222; and

(6) except as provided for in subsection (d.1) of

section 222, every corporation may retain less than 17%, 19%

or 20% of the moneys in the wagering pools under paragraphs

(2), (3) and (4) or less than 26% of the moneys in the

wagering pools under paragraph (5) upon approval from the

appropriate commission; and

(7) every corporation may retain more than 25% but no

more than 35% of the moneys in the wagering pools under

paragraph (5) upon approval from the appropriate commission;

and

(8) all moneys remaining in the wagering pools described

under paragraphs (2), (3), (4), (5), (6) and (7) shall be

distributed to the holders of winning tickets.

(b) Breakage shall mean the odd cents of redistributions to

be made on all contributions to pari-mutuel pools exceeding a

sum equal to the next lowest multiple of ten.

provisions for minus-pools relating to the retention

requirements under this section.

Section 222. Distribution of moneys retained from pari-mutuel

pools; taxation.

(a) There is hereby created the State Racing Fund. All

licensed corporations that conduct harness race meetings shall

pay a tax through the Department of Revenue for credit to the

State Racing Fund. All licensed corporations that conduct

thoroughbred horse race meetings shall pay a tax through the

20150SB0352PN0505 - 59 -

Department of Revenue for credit to the State Racing Fund. The

tax imposed on all licensed corporations shall be a percentage

tax on the amount wagered each racing day and be paid from the

moneys retained under section 221.

(a.1) At the close of each day of racing, all corporations

licensed to conduct harness horse race meetings or thoroughbred

horse race meetings which annually conduct at least 100 days of

racing, or when two licensed corporations conduct their race

meetings at the same facility and between them annually conduct

at least 175 days of racing, will pay out of the moneys retained

on that day under section 221, through the Department of Revenue

for credit to the State Horse Racing Fund the following taxes

for the time periods stated:

(1) From January 1, 1984 through June 30, 1984 - 3.8%.

(2) From July 1, 1984 through June 30, 1986 - 2.0%.

(3) After June 30, 1986 - 1.5%, except as provided in

subsection (a.4).

(a.2) Corporations not annually conducting at least 100 days

of racing, or 175 days of racing in conjunction with another

licensee at the same facility as described above, will pay 2.5%

from July 1, 1984 to June 30, 1986, and 2.0% thereafter. This

subsection shall not apply if races are not conducted because of

an act of God or because of a strike resulting from a labor

dispute.

(a.3) For purposes of this section, a racing day shall be

considered conducted after the appropriate commission has

certified the allocation of racing days to the Secretary of the

Department of Revenue under the provisions of section 207(b)

even if the racing day is subsequently cancelled by the licensed

corporation for reasons beyond its control.

20150SB0352PN0505 - 60 -

(a.4) Any corporation which does not hold a license under

section 209 on the effective date of this act and which is

granted a license under this act shall be subject to payment out

of moneys retained under section 221, through the Department of

Revenue for credit to the State Horse Racing Fund, of the

following tax for a period of four years from the issuance date

of the license - 1.0%, at which time said licensee shall be

subject to the lawful rate then in effect under subsection (a.1)

(3).

(a.5) In order to qualify for the 1.0% tax rate authorized

under subsection (a.4), the newly licensed corporation may not

include any officer, director or the immediate relative (spouse,

children or parents) of any officer or director of any licensed

racing corporation which conducted, at any time within the

immediately preceding five years, any horse or harness race

meetings at the racetrack enclosure for which the license is

sought. Also, the newly licensed corporation may not include any

shareholder (or their immediate relative) holding a 5% or

greater interest who also held a 5% or greater interest in any

corporation licensed at any time within the immediately

preceding five years to conduct horse or harness race meetings

at the racetrack enclosure for which the license is sought.

(b) The commissions shall distribute moneys from the State

Racing Fund, together with the interest earned thereon, in the

following manner:

(1) The salaries of employees of the commission employed

by or for it under the provisions of this act and the act of

April 9, 1929 (P.L.177, No.175), known as "The Administrative

Code of 1929," net of any income earned or received by the

commission.

20150SB0352PN0505 - 61 -

(2) The payment of the compensation of employees of the

Department of Revenue when used in collecting taxes and

penalties imposed by this act.

(3) The expenses of the Secretary and the Department of

Agriculture incurred in administering their duties under this

act.

(4) To pay all other expenses incurred by the commission

in administering this act, net of any income earned or

received by the commission.

(5) From remaining moneys in the State Racing Fund:

(i) An amount equivalent to one percent of the

amount wagered each racing day at thoroughbred horse race

meetings shall be paid by the Horse Racing Commission

from the State Racing Fund through the Department of

Revenue for credit to the Pennsylvania Breeding Fund.

(ii) An amount equivalent to one and one-half

percent of the amount wagered each racing day at harness

horse race meetings shall be paid by the Harness Racing

Commission from the State Racing Fund through the

Department of Revenue for credit to the Pennsylvania Sire

Stakes Fund, beginning on July 1, 1983.

(6) All remaining moneys in the State Racing Fund shall

be paid into the General Fund.

corporations that conduct thoroughbred horse race meetings shall

be distributed in the following manner:

(1) Fifty percent of the breakage shall be retained by

the licensed corporations.

(2) Twenty-five percent of the breakage shall be

retained by the licensed corporations to be used solely for

20150SB0352PN0505 - 62 -

purses to the horsemen.

(3) Twenty-five percent of the breakage shall be paid to

the Department of Revenue for credit to the State Horse

Racing Fund.

(d) All breakage retained under section 221 by licensed

corporations that conduct harness horse race meetings shall be

distributed in the following manner:

(1) Fifty percent of the breakage shall be retained by

the licensed corporations.

(2) The remaining 50% of the breakage shall be retained

by the licensed corporations of which one-half of this

breakage shall be used solely by the licensed corporations

for claiming and nonclaiming races where entry is restricted

to Pennsylvania-sired horses in the following manner:

(i) On January 1, 1982, and thereafter at least five

of the horses programmed to start shall be Pennsylvania-

sired horses. If at least five of the horses programmed

to start are not Pennsylvania-sired horses, then the

licensed corporation conducting the meet shall cancel the

race.

(ii) On January 1, 1983, and thereafter at least

seven of the horses programmed to start shall be

Pennsylvania-sired horses. If at least seven of the

horses programmed to start are not Pennsylvania-sired

horses, then the licensed corporation conducting the meet

shall cancel the race.

(iii) On January 1, 1984, and thereafter, only

Pennsylvania-sired horses shall be allowed to start in

these races. If all the positions are not filled by

Pennsylvania-sired horses in these races, then the

20150SB0352PN0505 - 63 -

licensed corporation conducting the meet shall cancel the

race.

All breakage moneys due licensed corporations for the purses for

claiming and nonclaiming races under this paragraph but not

expended as a result of a race cancellation shall be carried

forward to the next succeeding meet by the licensed corporations

to be used for claiming and nonclaiming races which restrict

entry to Pennsylvania-sired horses under the provisions of this

paragraph.

(d.1) An amount equivalent to one percent of the amount

wagered at each racing day at thoroughbred and harness horse

race meetings as set forth in section 221(a)(4) and (5) shall be

paid through the Department of Revenue for credit to the State

Racing Fund.

(e) All remaining moneys retained under section 221 and not

heretofore distributed shall be kept by the licensed

corporations for their use.

Section 223. Pennsylvania Breeding Fund.

(a) There is hereby created a restricted account in the

State Racing Fund to be known as the Pennsylvania Breeding Fund

which shall consist of the money appropriated under the

provisions of section 222 and which shall be administered by the

State Horse Racing Commission.

(b) After the deduction of expenses related to the

administration and development of the Pennsylvania Breeding Fund

program incurred by the Pennsylvania Horse Breeders'

Association, the State Horse Racing Commission shall, by rule or

regulation, provide for awards as follows:

(1) An award of 30% of the purse earned by every

registered Pennsylvania-bred thoroughbred horse sired by a

20150SB0352PN0505 - 64 -

registered Pennsylvania sire at the time of conception of the

registered Pennsylvania-bred thoroughbred horse, or an award

of 20% of the purse earned by every registered Pennsylvania-

bred thoroughbred horse sired by a nonregistered sire, which

finishes first, second or third in any race conducted by a

licensed corporation under this act shall be paid to the

breeder of said registered Pennsylvania-bred thoroughbred

horse. A single award under this paragraph may not exceed 1%

of the total annual fund money.

(2) An award of 10% of the purse earned by any

Pennsylvania-bred thoroughbred horse which finishes first,

second or third in any race conducted by a licensed

corporation under this act shall be paid to the owner of the

registered Pennsylvania sire which regularly stood in

Pennsylvania at the time of conception of said Pennsylvania-

bred thoroughbred horse. A single award under this paragraph

may not exceed .5% of the total annual fund money.

(3) An award of 10% of the purse earned by any

registered Pennsylvania-bred thoroughbred horse which

finishes first in any race conducted by a licensed

corporation under this act not restricting entry to

registered Pennsylvania-bred thoroughbred horses shall be

paid to the licensed owner of said registered Pennsylvania-

bred thoroughbred horse at the time of winning. A single

award under this paragraph may not exceed .5% of the total

annual fund money.

moneys remaining each year after the deduction of expenses

related to the administration and development of the

Pennsylvania Breeding Fund program and the payment of breeder,

20150SB0352PN0505 - 65 -

stallion and owner awards, shall be divided among the licensed

corporations that conduct thoroughbred horse race meetings in

direct proportion to the rate by which each licensed corporation

generated the fund moneys during the previous year to be used

solely for purses for Pennsylvania Breeding Fund stakes races

which restrict entry to registered Pennsylvania-bred

thoroughbred horses.

(d) The fund moneys remaining following disbursements as

directed in subsection (b)(1), (2) and (3) and subsection (c)

shall be divided among the licensed corporations that conduct

thoroughbred horse race meetings in direct proportion to the

rate by which each licensed corporation generated the fund

moneys during the previous year to be used for purses as

follows:

(1) Claiming and nonclaiming Pennsylvania Breeding Fund

races which restrict entry to registered Pennsylvania-bred

thoroughbred horses.

(2) Claiming and nonclaiming Pennsylvania Breeding Fund

races which prefer registered Pennsylvania-bred thoroughbred

horses as starters. In these races, should eight or more

registered Pennsylvania-bred horses pass the entry box, the

race shall be considered closed to horses other than

registered Pennsylvania-bred thoroughbred horses.

(e) Those Pennsylvania Breeding Fund moneys due licensed

corporations as outlined in subsections (c) and (d) but not

expended during the calendar year may be carried forth in the

fund on the account of said licensed corporations to be expended

during the succeeding year in addition to said corporations'

fund moneys annually due them for purses.

(f) The Pennsylvania Breeding Fund Advisory Committee, under

20150SB0352PN0505 - 66 -

the jurisdiction of the State Horse Racing Commission, is hereby

established and shall be part of the Pennsylvania State Horse

Racing Commission. The commission shall consist of five members,

all of whom shall be residents of Pennsylvania, to be appointed

by the commission by June 1 of each year. The committee shall

consist of two members of the Pennsylvania Horse Breeders'

Association, one member from the licensed corporations, one

member from the association representing horsemen racing in

Pennsylvania and one member of the commission. If any member

other than the commission member has not been recommended by

June 1 of each year, the commission shall make an appointment

for the organization failing to so recommend a member of the

committee. The committee shall assist and advise the commission

under the provisions of this act but shall have no power in

administering the fund. The members of the committee shall

receive no compensation for their services as members.

(g) The State Horse Racing Commission may contract with the

Pennsylvania Horse Breeders' Association as the sole responsible

body for the registration and records of Pennsylvania-breds. The

Pennsylvania Horse Breeders' Association shall advise the

commission when called upon and shall determine the

qualifications for Pennsylvania-bred thoroughbred horses and

Pennsylvania sires. Its registration and record facts are hereby

declared as official Pennsylvania records. At the close of each

calendar year, the Pennsylvania Horse Breeders' Association,

through the Pennsylvania Breeding Fund Advisory Committee, shall

submit to the commission for its approval an itemized budget of

projected expenses for the ensuing year relating to the

administration and development of the Pennsylvania Breeding Fund

program. The commission, on no more than a quarterly basis,

20150SB0352PN0505 - 67 -

shall reimburse from the fund the Pennsylvania Horse Breeders'

Association for those expenses actually incurred in the

administration and development of the Breeding Fund program.

Section 224. Pennsylvania Sire Stakes Fund.

(a) There is hereby created a restricted account in the

State Racing Fund to be known as the Pennsylvania Sire Stakes

Fund which shall consist of the money appropriated under the

provisions of section 222 and which shall be administered by the

State Harness Racing Commission.

(b) Sixty percent of the money remaining in the excess fund

account of the Pennsylvania Sire Stakes Fund at the end of the

calendar year in which this subsection is enacted shall be

distributed to licensed corporations that conduct harness horse

race meetings to be used in the next succeeding calendar year as

purse money for Pennsylvania-sired horses. The remaining 40% of

the money in the excess fund account at the end of the calendar

year of the enactment of this subsection, together with the

interest earned on that money, shall be distributed to licensed

corporations that conduct harness horse race meetings to be used

in the next succeeding calendar year following the next

succeeding calendar year as purse money for Pennsylvania-sired

horses. After deduction of sufficient funds to cover the State

Harness Racing Commission's cost of administration, 80%, unless

a smaller percentage is necessary in order to comply with the

minimum dollar requirement of subsection (e), of all remaining

moneys in the Pennsylvania Sire Stakes Fund at the end of the

calendar year shall be distributed to licensed corporations that

conduct harness horse race meetings to be used as purse money

for Pennsylvania-sired horses. The State Harness Racing

Commission may then allocate up to a total of and not exceeding

20150SB0352PN0505 - 68 -

40% of the total amount to be distributed to licensed

corporations in a calendar year for use for a series of

championship final races at the race tracks of licensed

corporations that conduct harness horse race meetings. The State

Harness Racing Commission shall allocate the moneys to these

championship final races in an equal amount for each sex, age

and gait for two- and three-year-old trotters and pacers. The

State Harness Racing Commission shall determine conditions

establishing eligibility to these final events. No pari-mutuel

harness track shall be awarded more than 50% of the championship

final races in any calendar year. The State Harness Racing

Commission shall schedule these final events so as to evenly

alternate classes at each race track each year. After the

allocation for the championship final races has been determined,

the remaining funds to be distributed to licensed corporations

that conduct harness horse race meetings shall be divided

equally among the licensed corporations. Each licensed

corporation shall divide the funds received equally for each of:

(1) four two-year-old races; one pace for colts, one

pace for fillies, one trot for colts and one trot for

fillies; and

(2) four three-year-old races; one pace for colts, one

pace for fillies, one trot for colts and one trot for

fillies.

respective races. The purse money shall be in addition to any

entry fees or other funds available.

(d) Entry for these races shall be limited to harness horses

which were sired by a standardbred stallion regularly standing

in Pennsylvania and each race shall be designated a Pennsylvania

20150SB0352PN0505 - 69 -

sire stakes race. The State Harness Racing Commission shall make

the provisions and regulations as it shall deem necessary for

the proper administration of the entry restriction.

(e) The remaining moneys in the Pennsylvania Sire Stakes

Fund up to a total of and not exceeding $25,000 for each

agricultural fair and one- or two-day events as defined in

harness racing commission regulations shall be divided equally

among those agricultural fairs and one- or two-day events, not

to exceed more than five one- or two-day events per year and as

authorized by the State Harness Racing Commission, provided that

no more than two one-day or two-day events per county are

authorized unless, after a date established by the commission,

all five of the events have not been allocated, conducting

harness horse races for two-year-old and three-year-old harness

horses: Provided, however, That in no event shall less than

$225,000 be allocated from the Pennsylvania Sire Stakes Fund and

be divided equally among those agricultural fairs and one- or

two-day events conducting these races. Each fair or one- or two-

day events receiving the funds shall divide the total amount

equally among all eligible races for two-year-old and three-

year-old harness horses and shall apply the funds solely as

additional purse funds. Only races to which entry is restricted

to Pennsylvania-sired horses shall be eligible. The State

Harness Racing Commission shall make the provisions and

regulations as it shall deem necessary for the proper

administration of all racing provided for in this subsection,

including, but not limited to, portable stall rentals at one-day

or two-day events.

(f) The fund moneys remaining following disbursements as

directed in subsections (b), (c), (d) and (e) shall, except as

20150SB0352PN0505 - 70 -

provided in subsection (b), be divided among active licensed

corporations that conduct harness horse race meetings under this

act in direct proportion to the rate by which each licensed

corporation generated the fund moneys during the previous year.

The fund moneys so divided shall be used for purses as follows:

(1) A minimum of four races, claiming and nonclaiming,

shall be carded per week on the condition sheet for overnight

claiming and nonclaiming Pennsylvania Fund races which

restrict entry to registered Pennsylvania-sired or wholly

Pennsylvania-owned harness horses.

(2) Claiming and nonclaiming Pennsylvania Fund races

which prefer registered Pennsylvania-sired harness horses as

starters. In these races, should seven or more registered

Pennsylvania-sired harness horses pass the entry box, the

race shall be considered closed to horses other than

registered Pennsylvania-sired harness horses.

Section 225.1. Fair Fund proceeds.

The Secretary of Agriculture shall distribute certain moneys

in the Fair Fund annually, on or before March 1, for

reimbursement for each county agricultural society and each

independent agricultural society conducting harness horse racing

during its annual fair other than races for two- and three-year

old colts and fillies, an amount of money equal to that used

during their annual fair as purse money for harness horse

racing, track and stable maintenance, starting gate rental and

the cost of all harness horse racing officials required during

their annual fair, but not more than $13,000, a minimum of

$4,000 of which must be used for purse money and the balance of

said allotment per fair, not used for purse money over the

minimum $4,000 allotment, shall be used for said specific

20150SB0352PN0505 - 71 -

purposes herein before referenced, or otherwise said allotment

shall be retained in the fund. The State Harness Racing

Commission shall cause to be carried out as its responsibility a

yearly inspection of each track facility and shall advise each

operating fair of necessary track maintenance which is necessary

to insure adequate racing surface during the course of scheduled

fairs and racing events. If it is the opinion of the commission

that the fair society or event sponsor is not adequately

financing track maintenance through its permissible

reimbursement under this paragraph, the commission shall so

surcharge the Fair Fund account of said fair society or event

sponsor to effectuate said remediation.

Section 226. Hearing of refusal or revocation of license.

If the commissions refuse to grant any license applied for

under this act, or shall revoke or suspend any license granted,

the applicant or licensee may demand, within ten days after

notice of the decision of the appropriate commission, a hearing

before the appropriate commission. The commission shall give

prompt notice of the time and place for the hearing at which

time the commission will hear the applicant or licensee. Pending

the hearing and final determination, the action of the

commissions in refusing to grant or in revoking or suspending a

license shall remain in full force. The commissions may continue

any hearing from time to time for the convenience of any of the

parties. Any of the parties affected by a hearing may be

represented by counsel. In the conduct of the hearing, the

commissions shall not be bound by technical rules of evidence,

but all evidence offered before the commissions shall be reduced

to writing. All evidence, exhibits and findings of the

commissions shall be permanently preserved and shall constitute

20150SB0352PN0505 - 72 -

the record of the commission. In connection with the hearing,

the commissions shall have the power to administer oaths and

examine witnesses, and may issue subpoenas to compel attendance

of witnesses and the production of all material and relevant

reports, books, papers, documents, correspondence and other

evidence. The commissions may by order refer to one or more of

its officers the duty of taking testimony in the matter and to

report to the commission. Within 30 days after the conclusion of

the hearing, the appropriate commission shall make a final order

in writing, setting forth the reasons for the action taken by it

and a copy thereof shall be served on the applicant or licensee.

Section 227. Approval of the racing facility.

The commissions shall not grant to a corporation formed under

this act a license to conduct a horse race meeting at which

pari-mutuel betting may be conducted, until the corporation has

submitted to the appropriate commission a statement of the

location of its proposed grounds and race track, together with a

plan of the track and plans of all buildings, seating stands and

other structures in a form as the appropriate commission may

prescribe. All plans shall be approved by the appropriate

commission before the issuance of any license to conduct a pari-

mutuel horse race meeting.

Section 228. Prohibition of wagering by certain officials,

employees and minors.

No commissioner, executive secretary, deputy, officer,

representative, employee or counsel of the commission shall

wager upon the outcome of any horse race conducted at a track at

which pari-mutuel wagering is conducted by any licensed

corporation of the commissions. No licensed corporation shall

permit any person who is actually and apparently under 18 years

20150SB0352PN0505 - 73 -

of age to wager at a race meeting conducted by it. No licensed

corporation shall permit any person who is under 18 years of age

to attend a horse race meeting conducted by it unless the person

is accompanied by a parent or guardian. This section shall not

be construed to prohibit persons under 18 years of age, who are

legally employed, from being upon the race track premises for

the sole purpose of engaging in the performance of their duties

as employees. The commissions shall, by rule, provide for

enforcement of this section.

Section 229. State horse racing veterinarians and State

stewards.

(a) The State Horse Racing Commission shall appoint and

employ licensed veterinarians and stewards to serve as the horse

racing veterinarians and State stewards for horse racing,

respectively, at each meeting conducted by a corporation

licensed by the State Horse Racing Commission. The State Horse

Racing Commission shall have the authority to employ other

individuals as shall be necessary to carry out the

responsibilities of this section.

(b) The costs and compensation of the horse racing

veterinarians, State stewards and other individuals employed

shall be fixed and paid by the State Horse Racing Commission.

description and professional criteria for stewards to assure

that they have a working knowledge of the horse racing industry.

Section 230. State harness racing veterinarians.

(a) The State Harness Racing Commission shall appoint and

employ licensed veterinarians to serve as the harness racing

veterinarians for harness racing at each meeting conducted by a

corporation licensed by the State Harness Racing Commission. The

20150SB0352PN0505 - 74 -

State Harness Racing Commission shall have the authority to

employ other individuals as shall be necessary to carry out the

responsibilities under this section.

(b) The costs and compensation of the harness racing

veterinarians and other individuals employed to carry out the

provisions of this act shall be fixed and paid by the State

Harness Racing Commission.

Section 231. Free passes, cards or badges.

(a) A licensed corporation shall not issue free passes,

cards or badges without admission tax, except to persons

hereafter described: officers, employees and shareholders of the

corporation conducting the race meeting; members, officers and

employees of the commissions; members of horse racing

associations of other states and foreign countries; public

officers engaged in the performance of their duties; persons

employed and accredited by the press to attend such meeting;

owners, stable managers, trainers, jockeys, concessionaries and

other persons whose actual duties require their presence at the

race tracks.

(b) The commissions may allow a licensed corporation to

issue free passes, cards or badges for special promotional

programs and seasonal discount ticket programs, so long as the

corporation has obtained approval from the appropriate

commission. The admissions taxes under section 208 shall be

imposed on the price of all seasonal discount tickets sold by a

licensed corporation.

be under the rules and regulations of the commissions. A list of

all persons, except persons admitted under an approved special

promotional program or seasonal discount ticket program, to whom

20150SB0352PN0505 - 75 -

free passes, cards or badges are issued shall be filed with the

appropriate commission.

Section 232. Political subdivision agricultural fairs and horse

race meetings not licensed to conduct pari-mutuel

wagering.

Pari-mutuel wagering on horse races at any county or other

political subdivision, agricultural or other fair shall not be

authorized. No lottery, pool selling, bookmaking or any other

kind of gambling upon the results of races, heats or contests of

speed of horses shall be allowed at any fair or at any horse

race meeting conducted in the State, except those licensed to

operate pari-mutuel wagering under the provisions of this act.

Section 233. Monitoring of wagering on video screens.

Every corporation licensed to conduct pari-mutuel betting

shall display on video screens the approximate odds or

approximate will-pays on each horse for each race as well as any

combination of races including, but not limited to, quinellas,

exactas, perfectas and any other combination or pool of races.

No display of approximate odds or approximate will-pays shall be

required where the wager is on horses in four or more races,

such as "Pick 4, Pick 5 or Pick 6." In addition to displaying

the amount of money wagered, the approximate odds or approximate

will-pays on each horse or combination of horses shall be shown

on video screens in each wagering division. For trifectas, in

lieu of odds or approximate will-pays, the amount of money being

wagered on each horse to win in the trifecta pool shall be

displayed on video screens separately from any other

information. The above required information shall be displayed

from the opening of bets or wagering and be continually

displayed until the wagering is closed. At least one video

20150SB0352PN0505 - 76 -

screen in each wagering division shall display the amount of

money wagered on each horse involved in any trifecta pool.

Section 234. Simulcasting.

The State Horse Racing Commission and the State Harness

Racing Commission shall only permit intrastate simulcasting of

live racing between two licensed corporations when each

continues to schedule 95% of the total number of horse or

harness racing days scheduled in 1986 at the facility where each

said licensed corporation conducts its horse or harness racing

dates, and when the average number of live horse or harness

races per race day equals 90% of the average number of live

horse or harness races conducted per day in 1985 at the facility

where each said licensed corporation conducts its horse or

harness racing dates, subject to any actions or activities

beyond the control of the licensee: Provided, however, That for

any licensed corporation that was granted a permanent license

for horse racing and operating at a facility where the average

daily handle at the facility at which the licensed corporation

conducts racing dates is less than $150,000 in any calendar year

after 1985, the State Horse Racing Commission may permit

intrastate simulcasting when the licensed corporation first

schedules a minimum of 50 racing days in the calendar year in

which it wishes to simulcast. A newly licensed corporation

racing at the facility may be permitted to intrastate simulcast

by the State Horse Racing Commission when it first schedules at

least 50 racing dates in the year in which it wishes to

simulcast. If a newly licensed corporation is awarded harness or

horse racing dates after 1987 and races those dates at a horse

or harness racing facility existing in 1987, other than a

facility whose average daily handle is less than $150,000, the

20150SB0352PN0505 - 77 -

respective commissions shall not permit intrastate simulcasting

unless the same number of horse or harness dates scheduled at

that facility in 1987 are scheduled at that facility in the year

that the corporation wishes to simulcast subject to any actions

or activities beyond the control of the licensees (i.e. act of

God, strike). For a licensed corporation awarded racing dates at

a facility which did not conduct horse or harness racing prior

to 1987, the respective commissions may permit intrastate

simulcasting if the licensed corporation is the only corporation

operating that facility when that corporation first schedules a

minimum of 125 days of racing dates in the calendar year in

which it wishes to simulcast or when more than one such

corporation is awarded dates for racing at the same facility

when those corporations first schedule a minimum of 200 days of

racing in the calendar year in which they wish to simulcast. For

purposes of this section a racing day shall consist of a minimum

of eight live races, except at thoroughbred tracks on Breeders'

Cup Event Day. For any licensed racing corporation engaged in

simulcasting, regardless of location or distance from another

licensed racing corporation, there shall exist a written

agreement with the horseman's organization representing a

majority of the owners and trainers at both the sending and

receiving racetracks. If no agreement can be reached, then the

licensed corporation may petition the court of common pleas in

the county in which the licensed corporation racetrack is

located, which may, upon good cause shown by the licensed

corporation that failure to consent would be detrimental to the

Pennsylvania racing industry, direct the organization

representing the horsemen to approve the simulcast agreement.

The respective commission may then authorize the simulcasting,

20150SB0352PN0505 - 78 -

if, in the opinion of the appropriate commission, such

simulcasting will have significant value to the Pennsylvania

racing industry. The simulcast signal shall be encoded, and the

racetrack receiving the simulcast signal shall not send this

signal anywhere other than public locations authorized under

section 218 or 218-A. All forms of pari-mutuel wagering

described in section 221 shall be allowed on races to be

televised by simulcasting under this section. The State Horse

Racing Commission and the State Harness Racing Commission may

promulgate regulations on wagering and the operation of these

races. All money wagered by patrons on these races shall be

computed in the amount of money wagered each racing day for

purposes of taxation under section 222. In the event the

simulcast is between a thoroughbred racetrack and a harness

racetrack, both commissions shall have jurisdiction, and any

approval required hereunder must be received from both

commissions: Provided, however, That if no agreement can be

reached between the horseman's organization aforementioned, then

the licensed corporation may petition the court of common pleas

in the county in which the licensed corporation racetrack is

located, which may, upon good cause shown by the licensed

corporation that failure to consent would be detrimental to the

Pennsylvania racing industry, direct the organization

representing the horsemen to approve the simulcast agreement.

The respective commissions may then authorize the simulcasting

if, in the opinions of the respective commission, such

simulcasting will have a significant value to the Pennsylvania

racing industry. The provisions of this section with regard to

the required number of racing days may be waived or modified by

the applicable commission if the waiver or modification has been

20150SB0352PN0505 - 79 -

consented to by the horseman's organization representing a

majority of the owners and trainers at the racetrack where the

racing days are to be scheduled or raced.

Section 235. Commingling.

(a) This section shall be applicable only to licensed

thoroughbred racing corporations.

(b) The race secretary shall receive entries and

declarations as an agent for the licensed corporation for which

the race secretary acts. The race secretary or an individual

designated by the licensed corporation may receive stakes,

forfeits, entrance money, jockey's and other fees, purchase

money in claiming races and other money that can properly come

into his possession as an agent for the licensed corporation for

which the race secretary or designee is acting.

account, called a Horsemen's Account. Money owing to owners in

regard to purses, stakes, rewards, claims and deposits shall be

deposited into the Horsemen's Account. Funds in the account

shall be recognized and denominated as being the sole property

of owners. Deposited funds may not be commingled with funds of

the licensed corporation unless a licensed corporation has

established, in favor of the organization which represents a

majority of the owners and trainers racing with the licensed

corporation, an irrevocable clean letter of credit with an

evergreen clause. The minimum amount of the credit must be the

greater of $1,000,000 or 110% of the highest monthly balance in

the Horsemen's Account in the immediate prior year. To calculate

the monthly balance in the Horsemen's Account, the sum of the

daily balances shall be divided by the number of days in the

month. The evergreen clause must provide that, 30 days prior to

20150SB0352PN0505 - 80 -

the expiration of the letter of credit, the financial

institution can elect not to renew the letter of credit; that,

upon this election, the financial institution must notify the

designee of the organization which represents a majority of the

owners and trainers racing with the licensed corporation, by

registered mail, return receipt requested, of the election not

to renew; and that the financial institution will honor the

letter of credit for six months after expiration. Purse money

earned by owners shall be deposited by the licensed corporation

in the Horsemen's Account within 48 hours after the result of

the race in which the money was earned has been declared

official and the purse has been released by the commission.

(d) A licensed corporation shall designate a bookkeeper who

is authorized to receive and disburse funds from the Horsemen's

Account. The bookkeeper must be bonded to provide indemnity for

malfeasance, nonfeasance and misfeasance. A certified copy of

the bond shall be filed with the commission.

(e) The Horsemen's Account and the investment and deposit

schedules relating to the account are subject to examination, at

reasonable times, by a designee of the organization which

represents a majority of the owners and trainers racing with the

licensed corporation and by the commission. The bookkeeper shall

provide each owner with access, at reasonable times during a

racing day, to the amount of funds in the Horsemen's Account

credited to that owner. At the close of a race meeting, the

bookkeeper shall mail to each owner a record of deposits,

withdrawals and transfers affecting the amount of funds in the

Horsemen's Account credited to that owner.

(f) The Horsemen's Account shall be audited periodically as

deemed appropriate by the commission. There shall be at least

20150SB0352PN0505 - 81 -

one audit per year. Monthly statements shall be provided to the

designee of the organization which represents a majority of the

owners and trainers racing with the licensed corporation.

(g) Fifty percent of the money earned as interest on funds

in the Horsemen's Account shall be paid to the organization

which represents a majority of the owners and trainers racing

with the licensed corporation on a weekly basis. This amount

shall be for the benefit of the horsemen as determined by the

organization which represents the majority of the owners and

trainers racing with the licensed corporation. The remaining 50%

of the interest earned shall be for the benefit of the licensed

corporation which shall have the responsibility to fund all

costs associated with the administration of the fund. Interest

each month must be earned in an amount equal to the Federal

Reserve Discount Rate on the first day of the month.

Section 236. Harness racing purse moneys.

Each licensed harness horse racing association must place on

deposit with the State Harness Racing Commission by March 1 of

each year an irrevocable letter of credit equivalent to its

average weekly purse total from the immediate prior year. The

commission shall hold the letter of credit in trust for the

harness horsemen racing at that licensed corporation in the

event that purse checks are not issued or that insufficient

funds are available to cover the purse checks.

Section 237. Limitations on day and night racing.

(a) For the purpose of this section day racing shall be

racing days for which the starting time for the first race is at

or before 2:00 p.m., and night racing shall be racing days for

which the starting time for the first race is after 5:00 p.m.

Day racing may not be conducted at any racing facility after

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1985 on any comparable type racing day or holiday on which day

racing was not conducted in 1985 unless all presently operating

licensed corporations conducting day racing agree, in writing,

to allow such day racing activities.

(b) Night racing may not be conducted at any racing facility

after 1985 on any comparable type racing night or holiday on

which night racing was not conducted in 1985 unless all

presently operating racing facilities conducting night racing

agree, in writing, to allow night racing activities.

grant exceptions to this section upon application by a licensed

racing corporation for not more than five racing days per

calendar year with respect to each licensed corporation. The

provisions of this section shall be effective until July 1,

1991.]

Section 3. The act is amended by adding chapters to read:

CHAPTER 2-A

RACING OVERSIGHT

Section 201-A. State HORSE Racing Commission.

(a) Establishment.--The State HORSE Racing Commission is

established as an independent administrative commission to A

COMMISSION WITHIN THE DEPARTMENT OF AGRICULTURE TO INDEPENDENTLY

regulate the operations of horse racing and , the conduct of

pari-mutuel wagering AND THE PROMOTION OF HORSE RACING in this

Commonwealth in accordance with this act.

(b) (Reserved).

(1) The commission shall consist of five members

appointed as follows:

(i) One member appointed by the Governor.

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(ii) One member appointed by the President pro

tempore of the Senate.

(iii) One member appointed by the Minority Leader of

the Senate.

(iv) One member appointed by the Speaker of the

House of Representatives.

(v) One member appointed by the Minority Leader of

the House of Representatives.

(2) The commissioner appointed under paragraph (1)(i)

shall hold office for a term of three years and until a

successor is qualified. Each commissioner appointed under

paragraph (1)(ii), (iii), (iv) and (v) shall hold office for

a term of two years and until a successor is qualified. a

commissioner appointed under paragraph (1)(i) may not serve

more than two three-year terms. A commissioner appointed

under paragraph (1)(ii), (iii), (iv) and (v) may not serve

more than three two-year terms. An appointment to fill a

vacancy shall by for the remainder of the unexpired term.

(B) MEMBERSHIP.--THE COMMISSION SHALL CONSIST OF THE

FOLLOWING MEMBERS:

(1) THREE MEMBERS APPOINTED BY THE GOVERNOR AS FOLLOWS:

(I) ONE MEMBER SHALL BE A LICENSED VETERINARIAN.

(II) ONE MEMBER SHALL BE SELECTED FROM A LIST OF

RECOMMENDATIONS SUBMITTED TO THE GOVERNOR FROM EACH

STANDARDBRED HORSEMEN'S ORGANIZATION.

(III) ONE MEMBER SHALL BE SELECTED FROM A LIST OF

RECOMMENDATIONS SUBMITTED TO THE GOVERNOR FROM EACH

THOROUGHBRED HORSEMEN'S ORGANIZATION.

(2) ONE MEMBER APPOINTED BY EACH OF THE FOLLOWING:

(I) THE PRESIDENT PRO TEMPORE OF THE SENATE.

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(II) THE MINORITY LEADER OF THE SENATE.

(III) THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

(IV) THE MINORITY LEADER OF THE HOUSE OF

REPRESENTATIVES.

(3) THE SECRETARY OF AGRICULTURE OR THE SECRETARY'S

DESIGNEE.

(4) THE CHAIRMAN OF THE PENNSYLVANIA GAMING CONTROL

BOARD OR THE CHAIRMAN'S DESIGNEE.

(3) (5) Each appointing authority shall make its

appointments within 30 days of the effective date of this

section. Appointments to fill a vacancy shall be made within

10 days of the creation of the vacancy. An appointment shall

not be final until receipt by the appointing authority of a

background investigation of the appointee by the Pennsylvania

State Police, which shall be completed within 30 days of the

appointment. A person who has been convicted in a domestic or

foreign jurisdiction of a felony, infamous crime, gambling

offense or an offense related to fixing horse races or animal

cruelty may not be appointed to the commission.

(4) (6) The following shall apply to appointees and ,

commissioners , EMPLOYEES AND INDEPENDENT CONTRACTORS :

(i) Each commissioner at the time of appointment

must be at least 25 years of age and must have been a

resident of this Commonwealth for a period of at least

one year immediately preceding appointment. Each

commissioner must remain a resident of this Commonwealth

during the term of membership on the commission.

(ii) A person may not be appointed a commissioner if

the person is a public official , EXCEPT COMMISSIONERS

APPOINTED UNDER SUBSECTION (B)(3) AND (4), or party

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officer as defined in 4 Pa.C.S. § 1512 (relating to

financial and employment interests) in this Commonwealth

or any of its political subdivisions.

(iii) Each commissioner, employee and independent

contractor of the commission must sign an agreement not

to disclose confidential information.

(iv) Except for a commissioner appointed under

paragraph (1)(ii) and (iii), a commissioner, employee or

independent contractor of the commission or other agency

having regulatory authority over horse racing under this

act may not be employed, hold an office or position or be

engaged in an activity which is incompatible with the

position, employment or contract.

(v) A commissioner may not be paid or receive a fee

or other compensation for any activity related to the

duties or authority of the commission other than

compensation and expenses provided by law.

(vi) A commissioner, employee or independent

contractor of the commission may not participate in a

hearing, proceeding or other matter in which the member,

employee or independent contractor, or the immediate

family thereof, has a financial interest in the subject

matter of the hearing or proceeding or other interest

that could be substantially affected by the outcome of

the hearing or proceeding without first fully disclosing

the nature of the interest to the commission and other

persons participating in the hearing or proceeding. The

commission shall determine if the interest is a

disqualifying interest that requires the disqualification

or nonparticipation of A COMMISSIONER, an employee or

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independent contractor. For purposes of this paragraph,

the term "immediate family" shall mean a spouse, parent,

brother, sister or child.

(vii) At the time of appointment and annually

thereafter, each commissioner shall disclose the

existence of any financial interest in any applicant,

licensed racing entity or licensed facility ENTITY and in

an affiliate, intermediary, subsidiary or holding company

thereof held by the member COMMISSIONER or known to be

held by a commissioner's immediate family. The disclosure

statement shall be filed with the executive director of

the commission EACH DIRECTOR ESTABLISHED UNDER SUBSECTION

(D)(2) and with the appointing authority for such member

COMMISSIONER and shall be open to inspection by the

public at the office of the commission during the normal

business hours of the commission and posted on the

commission's Internet website for the duration of a

commissioner's term and for two years after a

commissioner leaves office. For purposes of this

paragraph, the term "immediate family" shall mean a

spouse, parent, brother, sister or child.

(viii) Prior to entering into employment or a

contract with the commission and annually thereafter, an

employee or independent contractor must disclose the

existence of any financial interest in any applicant,

licensed racing entity or licensed facility ENTITY and in

an affiliate, intermediary, subsidiary or holding company

thereof owned or held by the employee or independent

contractor or known to be held by the immediate family of

the employee or independent contractor. The disclosure

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statement shall be filed with the commission and shall be

open to inspection by the public at the office of the

commission during the normal business hours of the

commission and posted on the commission's Internet

website for the duration of the employment or contract

and for two years after termination of employment or a

contract with the commission. For purposes of this

paragraph, the term "immediate family" shall mean a

spouse, parent, brother, sister or child.

(ix) A commissioner or employee of the commission

may not directly or indirectly solicit, request, suggest

or recommend to any applicant, licensed racing entity, or

an affiliate, intermediary, subsidiary or holding company

thereof or to an employee or agent thereof, the

appointment or employment of any person in any capacity

by the applicant, licensed racing entity or an affiliate,

intermediary, subsidiary or holding company thereof

during the term of office or employment with the

commission.

(x) Except for a commissioner appointed under

paragraph (1)(ii) and (iii), a commissioner may not

accept employment with an applicant for a horse racing

license, a licensed racing entity, or an affiliate,

intermediary, subsidiary or holding company thereof, for

a period of two years from the termination of term of

office.

(xi) A former commissioner may not appear before the

commission in any hearing or proceeding or participate in

any other activity on behalf of any applicant for a horse

racing license, a licensed racing entity, or an

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affiliate, intermediary, subsidiary or holding company of

an applicant or licensed racing entity for a period of

two years from the termination of term of office.

(xii) A commissioner or employee of the commission

may not accept a complimentary service, and except for a

commissioner appointed under paragraph (1)(ii) and (iii)

place a wager or be paid any prize from any wager on a

horse race at a racetrack or nonprimary location within

this Commonwealth or at any other racetrack or nonprimary

location outside this Commonwealth which is owned or

operated by a licensed racing entity or any of its

affiliates, intermediaries, subsidiaries or holding

companies for the duration of the commissioner's or

employee's term of office or employment. NOTHING IN THIS

SECTION SHALL BE CONSTRUED TO PROHIBIT A COMMISSIONER

APPOINTED UNDER PARAGRAPH (1)(II) AND (III) FROM BEING

AWARDED A PURSE OR BREEDERS' AWARD FOR THE COMMISSIONER'S

PARTICIPATION IN HORSE RACING.

(xiii) A commissioner who has been convicted during

his term of office in a domestic or foreign jurisdiction

of a felony, infamous crime, offense related to fixing or

rigging horse races or gambling offense shall, upon

conviction, be automatically removed from the commission

and shall be ineligible to become a commissioner in the

future.

(xiv) The following shall apply to an employee of

the commission whose duties substantially involve

licensing, enforcement, development of law, promulgation

of regulations or development of policy, relating to

horse racing under this act or who has other

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discretionary authority which may affect or influence the

outcome of an action, proceeding or decision under this

act, including the director of a bureau:

(A) The individual may not, for a period of two

years following termination of employment, accept

employment with or be retained by an applicant for a

horse racing license or a licensed racing entity or

by an affiliate, intermediary, subsidiary or holding

company of an applicant or a licensed racing entity.

(B) The individual may not, for a period of two

years following termination of employment, appear

before the commission in a hearing or proceeding or

participate in activity on behalf of any applicant,

licensee, permittee or licensed racing entity or on

behalf of an affiliate, intermediary, subsidiary or

holding company of any applicant, licensee, permittee

or licensed racing entity.

(xv) Nothing under subparagraph (xiv) shall prevent

a current or former employee of the commission from

appearing before the commission in a hearing or

proceeding as a witness or testifying as to a fact or

information.

(xvi) The State Ethics Commission shall issue a

written determination of whether a person is subject to

subparagraph (xiv) upon the written request of the person

or the person's employer or potential employer. A person

that relies in good faith on a determination issued under

this paragraph shall not be subject to any penalty for an

action taken, if all material facts set forth in the

request for the determination are correct.

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(xvii) The State Ethics Commission shall publish a

list of all employment positions within the commission

whose duties would subject the individuals in those

positions to the provisions of subparagraph (xiv). The

commission shall assist the State Ethics Commission in

the development of the list, which shall be published by

the State Ethics Commission in the Pennsylvania Bulletin

biennially and posted by the commission on the

commission's Internet website. Upon request, employees of

the commission shall have a duty to provide the State

Ethics Commission with adequate information to accurately

develop and maintain the list. The State Ethics

Commission may impose a civil penalty under 65 Pa.C.S. §

1109(f) (relating to penalties) upon an individual who

fails to cooperate with the State Ethics Commission under

this subparagraph. An individual who relies in good faith

on the list published by the State Ethics Commission

shall not be subject to any penalty for a violation of

subparagraph (xiv).

(xviii) A commissioner may not solicit, request,

suggest or recommend the employment by the commission of :

(A) an individual related to the commissioner

within the second degree of consanguinity as provided

in 23 Pa.C.S. § 1304(e) (relating to restrictions on

issuance of license); or

(B) the spouse of the individual. AN IMMEDIATE

FAMILY MEMBER.

(xix) If a commissioner violates any provision of

this section, the appointing authority may remove the

person from the commission. A commissioner removed under

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this paragraph shall, for a period of five years

following removal, be prohibited from future appointment

to the commission and shall be prohibited from applying

for a license, permit or other authorization under this

act and from becoming an independent contractor with the

commission or registering as a licensed racing entity

representative.

(xx) Except for a commissioner appointed under

paragraph (1)(ii) and (iii), a commissioner or employee

of the commission may not directly or indirectly have an

ownership interest in a race horse which is entered in a

HORSE race meeting in this Commonwealth.

(5) (7) The commissioner or employee of the commission

shall serve as a fiduciary of the Commonwealth.

(6) (8) Commissioners shall exercise the standard of

care required by 20 Pa.C.S. Ch. 73 (relating to

municipalities investments) in the performance of their

duties under this act.

(7) (9) A commissioner shall not be personally liable

for any of the following:

(i) Obligations of the commission.

(ii) Actions which were within the scope of their

office and made in good faith.

(B.1) INITIAL APPOINTMENTS TO COMMISSION.--

(1) GUBERNATORIAL APPOINTEES INITIALLY APPOINTED UNDER

SUBSECTION (B)(1) SHALL SERVE AN INITIAL TERM OF ONE, TWO AND

THREE YEARS RESPECTIVELY AS DESIGNATED BY THE GOVERNOR AT THE

TIME OF APPOINTMENT AND UNTIL THEIR SUCCESSORS ARE APPOINTED

AND QUALIFIED.

(2) AN APPOINTMENT TO FILL A VACANCY CREATED BY A

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COMMISSIONER APPOINTED IN ACCORDANCE WITH PARAGRAPH (1) SHALL

BE FOR THE REMAINDER OF THE UNEXPIRED TERM.

(B.2) TERMS OF OFFICE.--UPON THE EXPIRATION OF A TERM OF A

MEMBER APPOINTED UNDER SUBSECTIONS (B) AND (B.1), THE FOLLOWING

SHALL APPLY:

(1) THE TERM OF OFFICE OF A GUBERNATORIAL APPOINTEE

SHALL BE THREE YEARS AND UNTIL A SUCCESSOR IS APPOINTED AND

QUALIFIED.

(2) THE TERM OF OFFICE OF A LEGISLATIVE APPOINTEE SHALL

BE TWO YEARS AND UNTIL A SUCCESSOR IS APPOINTED AND

QUALIFIED.

(3) A LEGISLATIVE APPOINTEE SHALL SERVE NO MORE THAN

THREE FULL CONSECUTIVE TERMS.

(4) A GUBERNATORIAL APPOINTEE SHALL SERVE NO MORE THAN

TWO FULL CONSECUTIVE TERMS.

(5) AN APPOINTMENT TO FILL A VACANCY SHALL BE FOR THE

REMAINDER OF THE UNEXPIRED TERM.

(6) A COMMISSIONER APPOINTED TO FILL A VACANCY UNDER

PARAGRAPH (3) MAY SERVE THREE FULL TERMS FOLLOWING THE

EXPIRATION OF THE TERM RELATED TO THE VACANCY.

(7) A COMMISSIONER APPOINTED TO FILL A VACANCY UNDER

PARAGRAPH (4) MAY SERVE TWO FULL TERMS FOLLOWING THE

EXPIRATION OF THE TERM RELATED TO THE VACANCY.

(c.1) (C) Chairperson.--The governor shall appoint the

chairperson of the commission.

(c.2) (C.1) Compensation.--Commissioners shall be reimbursed

for documented expenses incurred in the performance of their

official duties. Commissioners EXCEPT FOR COMMISSIONERS

APPOINTED UNDER SUBSECTION (B)(3) AND (4), COMMISSIONERS shall

be paid $300 per diem for performing their duties.

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(c.3) (C.2) Meetings.--The commission shall meet at least

once a month and at other times as the commission chairperson

deems necessary. Public notice of the time and place of meetings

of the commission shall be given in accordance with 65 Pa.C.S.

Ch. 7 (relating to open meetings).

(c.4) Employees.--Commission employees shall be considered

State employees for purposes of 71 Pa.C.S. Pt. XXV (relating to

retirement for State employees and officers).

(c.5) Legal counsel.--Legal counsel for the commission shall

be appointed in accordance with the act of October 15, 1980

(P.L.950, No.164), known as the Commonwealth Attorneys Act.

(c.6) Employee classification.--The commission shall be

subject to the provisions of the act of April 9, 1929 (P.L.177,

No.175), known as The Administrative Code of 1929, as to

classification and compensation for all its employees.

(c.7) Administrative staff and facilities.--The Department

of Agriculture shall provide administrative services,

administrative staff and facilities to the commission. The

commission shall execute a memorandum of understanding with the

Department of Agriculture for purposes of establishing a

schedule of reimbursement for the actual cost of providing

administrative services, administrative staff and facilities.

Reimbursements shall be paid from the State Racing Fund and

shall be limited to actual costs, including salaries and

benefits, and expenses of the employee providing the service.

The Department of Agriculture shall retain records regarding any

administrative service provided to the commission by a

departmental employee.

(c.8) Applicability of other acts.--

(1) The following acts shall apply to the commission:

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(i) The act of July 19, 1957 (P.L.1017, No.451),

known as the State Adverse Interest Act.

(ii) The act of February 14, 2008 (P.L.6, No.3),

known as the Right-to-Know Law.

(iii) The provisions of 65 Pa.C.S. Chs. 7 (relating

to open meetings) and 11 (relating to ethics standards

and financial disclosure).

(2) The commission shall be considered an independent

agency for the purposes of 62 Pa.C.S. Pt. I (relating to

Commonwealth procurement code). The expediting of payment of

revenue to the Commonwealth shall not be grounds for an

emergency procurement by the commission.

(3) The commission shall be considered an agency for the

purposes of:

(i) The act of July 31, 1968 (P.L.769, No.240),

referred to as the Commonwealth Documents Law.

(ii) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

(d) Office of Horse Racing.--There is hereby established

within the commission an Office of Horse Racing.

(1) The office shall be comprised of the following:

(i) The Bureau of Thoroughbred Horse Racing shall

have oversight over the conduct of thoroughbred horse

racing in this Commonwealth.

(ii) The Bureau of Standardbred Horse Racing shall

have oversight over the conduct of standardbred horse

racing in this Commonwealth.

(2) The COMMISSION BY A SUPER MAJORITY VOTE SHALL SELECT

AND EMPLOY AN INDEPENDENT DIRECTOR OF THE Bureau of

Thoroughbred Horse Racing and the Bureau of Standardbred

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Horse Racing shall each have a director and staff necessary

to carry out the provisions of this act. TO SERVE AND REPORT

TO THE COMMISSION. THE DIRECTORS OF EACH BUREAU SHALL NOT BE

SUPERVISED BY THE DEPARTMENT OF AGRICULTURE. THE COMMISSION

SHALL ASSIGN THE DIRECTORS DUTIES AND RESPONSIBILITIES AS

REQUIRED TO FULFILL THE COMMISSION'S OBLIGATIONS UNDER THIS

OR ANY OTHER ACT. The director of each bureau established in

this section must meet any of the following requirements:

(i) Has been certified as a racing official.

(ii) Have HAS at least five years' experience in the

management of a licensed racing entity OR EQUIVALENT

RACING EXPERIENCE .

(3) Each bureau established under this subsection shall

have the following powers and duties:

(i) Evaluate and review all applicants and

applications for a THOROUGHBRED horse racing or harness

STANDARDBRED HORSE racing license. A bureau under this

section shall be prohibited from disclosing any portion

of an evaluation to a commissioner prior to the decision

relating to the applicant's suitability for licensure by

the commission.

(ii) Inspect and monitor licensees and other persons

regulated under this act for noncriminal violations,

including potential violations referred to either bureau

by the commission or other person.

(iii) Monitor horse racing operations to ensure

compliance with this act.

(iv) Inspect and examine licensed racing entities.

(A) Inspections may include the review and

reproduction of any document or record.

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(B) Examinations may include the review of

accounting, administrative and financial records,

management control systems, procedures and other

records.

(v) Refer possible criminal violation to law

enforcement.

(vi) Cooperate in the investigation and prosecution

of any criminal violation.

(e) Jurisdiction.--The commission shall have jurisdiction

and regulatory authority over the following:

(1) Pari-mutuel wagering and other horse racing

activities in this Commonwealth.

(2) A licensed person engaged in pari-mutuel horse

racing activities.

(3) Out-of-competition drug testing, which shall include

the random drug testing of all horses entered in a race,

stabled on the grounds or shipped into a licensed racing

entity's facility.

(4) The conduct of horse racing in this Commonwealth.

(f) Voting.--

(1) Except as provided under paragraphs (2) and (3), any

action, including the approval, issuance, denial or

conditioning of a horse racing license by the commission, the

making of any order or the ratification of a permissible act

done or order made by one or more commissioners shall require

a supermajority vote consisting of four of five SIX OF NINE

commissioners.

(2) Any action to suspend, revoke, not renew, void or

require forfeiture of a AN OCCUPATIONAL license or permit

issued under this act, to impose an administrative fine or

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penalty or to issue cease and desist orders or similar

enforcement actions shall require a majority vote of all

commissioners.

(3) Notwithstanding any other provision of this act or

65 Pa.C.S. § 1103(j) (relating to restricted activities), a

commissioner must disclose the nature of his disqualifying

interest, disqualify himself and abstain from voting in any

hearing or proceeding in which the commissioner's

objectivity, impartiality, integrity or independence of

judgment may be reasonably questioned. If a commissioner has

disqualified himself, the supermajority vote shall consist of

all of the remaining commissioners.

(g) Records.--The commission shall maintain at its office

the following:

(1) All documents provided to or filed with the

commission relating to the regulation of horse racing and

pari-mutuel wagering under this act. Documents may be

designated as confidential in accordance with commission

policy.

(2) A docket setting forth the names of all stockholders

in a licensed racing entity. The docket shall be available

for public inspection during normal business hours of the

commission.

(3) The number of shares held by each stockholder.

(4) A complete record of proceedings of the commission

relating to horse racing and pari-mutuel wagering.

(h) Rules and regulations.--The following shall apply:

(1) All rules and regulations promulgated under the

former act of December 11, 1967 (P.L.707, No.331), referred

to as the Pennsylvania Thoroughbred Horse Racing Law, or the

20150SB0352PN0505 - 98 -

former act of December 22, 1959 (P.L.1978, No.728), referred

to as the Pennsylvania Harness Racing Law, shall remain in

effect except to the extent that they are in direct conflict

with this act. The commission may adopt, amend, revise or

alter the rules and regulations as the commission deems

necessary.

(2) The commission shall promulgate rules and

regulations necessary for the administration and enforcement

of this act. Except as provided in paragraph (3), regulations

shall be promulgated in accordance with law.

(3) In order to facilitate the prompt implementation of

this act, regulations promulgated by the commission shall be

deemed temporary regulations which shall not expire for a

period of three years following publication. Temporary

regulations shall not be subject to:

(i) Sections 201, 202, 203, 204 and 205 of the

Commonwealth Documents Law.

(ii) The Regulatory Review Act.

(iii) Sections 204(b) and 301(10) of the

Commonwealth Attorneys Act.

(4) The commission's authority to promulgate temporary

regulations under paragraph (3) shall expire three years

after the effective date of this section. Regulations adopted

after this period shall be promulgated as provided by law.

(i) Application.--The commission shall develop an

application for applicants seeking a license to conduct horse

racing pursuant to this act.

(j) Licenses.--Each license to conduct horse racing or any

other activity under this act issued prior to January 1, 2017,

shall remain in effect for the remainder of the term for which

20150SB0352PN0505 - 99 -

the license was issued unless revoked or suspended. Beginning

January 1, 2017, a license shall be renewed or a new license

shall be issued in accordance with this act.

(k) Report of commission.-- Eighteen TWELVE months after the

effective date of this section and every year on that date

thereafter, the commission shall issue a report to the Governor

and each member of the General Assembly on the general operation

of the commission and each licensee's performance, including

number and win per race and total gross revenue at each facility

of a licensed racing entity during the previous year, all taxes,

fees, fines and other revenues collected and, where appropriate,

disbursed, the costs of operation of the commission, all

hearings conducted and the results of the hearings and other

information that the commission deems necessary and appropriate.

(l) Record of proceedings.--The commission shall cause to be

made and kept a record of all proceedings held at public

meetings of the commission. The verbatim transcript of those

proceedings shall be the property of the commission and shall be

prepared by the commission upon the request of any commissioner

or upon the request of any other person and the payment by that

person of the costs of preparation.

(m) Public records.--Beginning 30 days after the effective

date of this section, the commission shall post, within 45 days

after the end of each month on its Internet website, a list of

all the itemized expenses of employees and commissioners for

that month that were or are to be reimbursed from the State

Racing Fund. The list shall identify the nature of the expense,

the employee, member or the agency and employee of the agency to

which an expense is attributable. By October 1 of each year, a

final report of all expenses described in this subsection for

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the preceding fiscal year shall be posted on the commission's

Internet website and shall be submitted to the Appropriations

Committee of the Senate, the Agriculture and Rural Affairs

Committee of the Senate, the Appropriations Committee of the

House of Representatives and the Agriculture and Rural Affairs

Committee of the House of Representatives. Information posted on

the Internet website pursuant to this subsection shall be

financial records for the purposes of and subject to redaction

under the Right-to-Know Law.

Section 202-A. Additional powers of the commission.

The commission shall regulate horse racing at which pari-

mutuel wagering is conducted and approve the number of racing

days allocated to each licensed racing entity. In addition to

any other powers of the commission:

(1) The commission shall promulgate regulations

regarding medication rules as required under Chapter 3.

(2) The commission shall require applicants under this

act to submit to fingerprinting and photographing by the

Pennsylvania State Police or by a local law enforcement

agency capable of submitting fingerprints and photographs

electronically to the Pennsylvania State Police utilizing the

Integrated Automated Fingerprint Identification System and

the Commonwealth Photo Imaging Network or in a manner

provided by the Pennsylvania State Police. The Pennsylvania

State Police shall submit fingerprints to the Federal Bureau

of Investigation to verify the identity of applicants and to

obtain criminal records. The commission shall consider

information obtained pursuant to this paragraph for the

purpose of screening applicants for fitness for licensure in

accordance with the provisions of this act. National criminal

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history record information received by the commission shall

be handled and maintained in accordance with Federal Bureau

of Investigation policy. Fingerprints and photographs

obtained under this paragraph may be maintained by the

commission and the Pennsylvania State Police to enforce this

act and for general law enforcement purposes. In addition to

any other fee or cost assessed by the commission, an

applicant shall pay for the cost of fingerprinting and

photographing. The commission may exempt certain categories

of employment from this paragraph.

(3) Two years following the effective date of this

section, the commission may adopt regulations to annually

increase any fee, charge or cost authorized under this act.

(4) The commission or designated employee of the

commission shall have the power to administer oaths and

examine witnesses and may issue subpoenas to compel

attendance of witnesses and production of all relevant and

material reports, books, papers, documents, correspondence

and other evidence related to regulation and enforcement of

horse racing under this act.

(5) The commission's consideration and resolution of all

license or permit applications shall be conducted in

accordance with 2 Pa.C.S. (relating to administrative law and

procedure) or with procedures adopted by order of the

commission. Notwithstanding 2 Pa.C.S. §§ 504 (relating to

hearing and record) and 505 (relating to evidence and cross-

examination), the commission may adopt procedures to provide

parties before it with a documentary hearing and may resolve

disputed material facts without conducting an oral hearing

where constitutionally permissible.

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(6) The commission may enter into interstate compacts

with other racing jurisdictions to establish:

(i) uniform drug threshold levels;

(ii) consistent sanctions for drug testing

violations; and

(iii) a system to monitor advanced deposit wagering

and online wagering company activities.

(7) The commission may issue grants from the annual

appropriations to race horse rescue and rehabilitation

programs operating within this Commonwealth.

(8) The commission shall ensure DIRECT AND OVERSEE that

each licensed racing entity's racetrack surface is maintained

in such a way as to maximize the safety of the horse, rider

JOCKEY or driver. The commission may develop guidelines to

carry out this paragraph.

Section 203-A. Budget.

The commission shall annually submit an itemized proposed

budget to the Office of the Budget and the chairman and minority

chairman of the Appropriations Committee of the Senate and the

chairman and minority chairman of the Appropriations Committee

of the House of Representatives consisting of amounts to be

appropriated from the State Racing Fund, the Pennsylvania Race

Horse Development Fund or the General Fund to administer and

enforce this act.

THE COMMISSION SHALL ANNUALLY SUBMIT A BUDGET REQUEST TO THE

SECRETARY OF THE BUDGET IN ACCORDANCE WITH THE PROVISIONS

CONTAINED IN SECTION 610 OF THE ACT OF APRIL 9, 1929 (P.L.177,

NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929, CONSISTING OF

AMOUNTS TO BE APPROPRIATED FROM THE STATE RACING FUND, THE

PENNSYLVANIA RACE HORSE DEVELOPMENT FUND OR THE GENERAL FUND TO

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ADMINISTER AND ENFORCE THIS ACT AND FOR THE PROMOTION OF HORSE

RACING. THE COMMISSION SHALL TRANSMIT A COPY OF ITS BUDGET

REQUEST CONCURRENTLY TO THE CHAIRMAN AND MINORITY CHAIRMAN OF

THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIRMAN AND

MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE

OF REPRESENTATIVES.

Section 204-A. Location.

After January 1, 2017, a licensed racing entity that holds a

license issued under this act shall conduct a horse race meeting

at the location designated and approved by the commission.

Section 205-A. Number of licensed racing entities.

(a) Standardbred horse racing.--No more than six persons

shall be licensed to conduct a pari-mutuel meet. No person

licensed under this act to conduct standardbred horse racing

with pari-mutuel wagering shall be licensed to conduct

thoroughbred horse racing with pari-mutuel wagering.

(b) Thoroughbred horse racing.--No more than five persons

shall be licensed by the commission to conduct pari-mutuel

wagering. No person licensed under this act to conduct

thoroughbred horse racing with pari-mutuel wagering shall be

licensed to conduct standardbred horse racing with pari-mutuel

wagering.

Section 206-A. Department of Revenue.

The Department of Revenue shall provide financial

administration of pari-mutuel wagering under this act in

accordance with Department of Revenue regulations and

regulations of the commission. The Department of Revenue shall

prescribe the form and system of accounting to be used by

licensed racing entities, and may access and examine records,

equipment and other information relating to pari-mutuel

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wagering.

Section 207-A. Allocation of racing days.

(a) General rule.--

(1) Horse racing shall be conducted consistent with 4

Pa.C.S. § 1303 (relating to additional Category 1 slot

machine license requirements).

(2) The provisions of this section and 4 Pa.C.S. § 1303

(a)(2) and (b) may be waived or modified by the commission if

the waiver or modification has been agreed to by the

horseman's organization representing a majority of horse

owners and trainers AND THE LICENSED ENTITY at the racetrack

where the racing days are to be scheduled or raced.

(3) The provisions of 4 Pa.C.S. § 1303(d) shall not

apply if the reason for noncompliance with that section by a

licensed racing entity is the cancellation of racing days due

to the commission's inability to properly regulate and

oversee the conduct of horse racing in this Commonwealth due

to inadequate funding.

(b) Certification.--The commission shall submit to the

Secretary of Revenue the approved number of racing days for each

licensed racing entity, including the following information:

(1) the names and addresses of the licensed racing

entity;

(2) the names and addresses of the owners, officers and

general managers of the licensed racing entity; and

(3) any other information the commission deems

appropriate.

(1) If a racing day is canceled by a licensed racing

entity for reasons beyond the licensed racing entity's

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control, the commission shall grant the licensed racing

entity the right to conduct that racing day in the same or

the next ensuing calendar year, if schedules permit.

(2) A director of a bureau established under section

201-A, after consultation with the licensed racing entity and

the horseman's organization representing a majority of horse

owners and trainers at the racetrack , may cancel a race if it

is determined that fewer than six horses have entered the

race.

Section 208-A. Licenses for horse race meetings.

(a) Procedure and terms.--

(1) After January 1, 2017, a person seeking a license to

conduct horse race meetings at which pari-mutuel wagering is

permitted or seeking to renew the license, shall file an

application or renewal application with the commission in the

manner prescribed by the commission.

(2) A licensed racing entity shall have the privilege to

conduct a horse race meeting at which pari-mutuel wagering is

permitted. A license to conduct a horse race meeting shall

not be a property right.

(3) The commission may revoke or suspend the license of

a licensed racing entity if the commission finds that the

licensed racing entity, its owners, officers, managers or

agents, have not complied with this act and regulations

promulgated in accordance with this act.

(4) A licensed racing entity may not transfer a license

without the approval of the commission.

(b) Conditions.--Each horse racing license shall be issued

upon the following conditions:

(1) A horse race meeting at which pari-mutuel wagering

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is conducted shall be regulated by the commission.

(2) The conduct of pari-mutuel wagering shall also be

regulated by the Department of Revenue.

(3) The licensed racing entity shall print in its racing

programs the procedure for filing a complaint with the

commission.

MEETINGS shall be in the form prescribed by the commission and

shall contain information as the commission may require.

(d) Action on licenses.--The following shall apply:

(1) The commission shall be prohibited from issuing a

license to conduct horse racing RACE MEETING to an individual

or applicant or an owner, officer, director or manager of the

applicant who has been convicted of:

(i) A felony in any jurisdiction.

(ii) A misdemeanor gambling offense in any

jurisdiction, unless 15 years has elapsed from the date

of conviction.

(iii) Fraud or misrepresentation in any jurisdiction

related to horse racing or horse breeding, unless 15

years has elapsed from the date of conviction.

(iv) An offense under 18 Pa.C.S. § 5511 (relating to

cruelty to animals).

(v) An offense related to fixing or rigging horse

races, including 18 Pa.C.S. § 4109 (relating to rigging

publicly exhibited contest) or 7102 (relating to

administering drugs to race horses), or any similar crime

in another jurisdiction, unless the conviction has been

overturned on appeal under the laws of the jurisdiction

of the original finding or a pardon has been issued.

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(2) Following expiration of any period applicable to an

applicant under paragraph (1)(ii) or (iii), in determining

whether to issue a horse racing license to an applicant, the

commission shall consider the following factors:

(i) The individual or a principal of the applicant's

position with the applicant.

(ii) The nature and seriousness of the offense or

conduct.

(iii) The circumstances under which the offense or

conduct occurred.

(iv) The age of the applicant when the offense or

conduct occurred.

(v) Whether the offense or conduct was an isolated

or a repeated incident.

(vi) Any evidence of rehabilitation, including good

conduct in the community, counseling or psychiatric

treatment received and the recommendations of persons who

have substantial contact with the applicant.

(3) If, in the judgment of the commission, the applicant

has demonstrated by clear and convincing evidence that the

participation of the applicant in horse racing or related

activities is not:

(i) inconsistent with the public interest or best

interests of horse racing;

(ii) interfering with the effective regulation of

horse racing; or

(iii) creating or enhancing the danger of

unsuitable, unfair or illegal practices, methods or

activities in the conduct of horse racing.

(e) Denial, suspension or revocation.--The commission may

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deny an application for a license or revoke, suspend or fail to

renew the license of any applicant or licensed racing entity, if

the commission finds by a preponderance of the evidence that:

(1) The applicant or licensed racing entity, or any of

its owners, officers, director, managers, employees or

agents:

(i) Has not complied with the conditions, rules,

regulations and provisions of this act and that it would

be in the public interest, convenience or necessity to

deny, revoke, suspend or not renew the license.

(ii) Has been convicted of a violation or attempt to

violate a horse racing law, rule or regulation of a horse

racing jurisdiction.

(iii) Has furnished the commission with false or

misleading information relating to the application or

license renewal.

(2) The applicant or licensed racing entity does not

have the use of a racetrack or racetrack enclosure in

accordance with the provisions of 4 Pa.C.S. Pt. II (relating

to gaming).

(3) The licensed racing entity has commingled horsemen's

funds in violation of section 235-A(c) or has refused to

place on deposit a letter of credit under section 236-A.

(4) The commission determines that the licensed racing

entity has failed to properly maintain its racetrack and

racetrack enclosure in good condition pursuant to this act or

to provide adequate capital improvements to the racetrack and

racetrack enclosure as required under this act and 4 Pa.C.S.

§ 1404 (relating to distributions from licensee's revenue

receipts).

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(5) The licensee has been convicted in any jurisdiction

of an offense related to fixing or rigging horse races,

including 18 Pa.C.S. § 4109 or 7102, or any similar crime in

another jurisdiction, unless the conviction has been

overturned on appeal under the laws of the jurisdiction of

the original finding or a pardon has been issued.

(f) Cessation.--If a revocation or failure to renew a

license under subsection (e) occurs, the licensee's

authorization to conduct previously approved activity shall

immediately cease. In the case of a suspension, the licensee's

authorization to conduct previously approved activity shall

immediately cease until the commission has notified the licensee

that the suspension is no longer in effect.

(g) Renewal.--A license shall be renewed every three years

and may , EXCEPT AS PROVIDED FOR UNDER SUBSECTION (A)(4), SHALL

not be transferred.

(h) Conditional licenses.--Pending a final determination

under this section, the commission may issue a conditional

license upon the terms and conditions as are necessary to

effectuate the provisions of this act.

(i) Compliance.--Nothing in this section shall be construed

to relieve a licensed racing entity of its duty to comply with

the requirements of 4 Pa.C.S. Pt. II.

Section 209-A. Code of conduct.

(a) Scope.--The commission shall adopt a comprehensive code

of conduct prior to the consideration of any license, permit or

registration application. The code of conduct shall supplement

all other requirements under this part and 65 Pa.C.S. Pt. II

(relating to accountability) and shall provide guidelines

applicable to members COMMISSIONERS , employees of the

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commission, independent contractors and the immediate family of

the members COMMISSIONERS , employees and independent contractors

to enable them to avoid any perceived or actual conflict of

interest and to promote public confidence in the integrity and

impartiality of the commission. At a minimum, the code of

conduct adopted under this section shall include registration of

licensed entity representatives under subsection (b) and the

restrictions under subsections (c) and (d).

(b) Registration.--

(1) A licensed entity representative shall register with

the commission in a manner prescribed by the commission,

which shall include the name, employer or firm, business

address and business telephone number of both the licensed

entity representative and any licensed racing entity,

applicant for licensure or other person being represented.

(2) A licensed entity representative shall have an

affirmative duty to update its registration information on an

ongoing basis, and failure to do so shall be punishable by

the commission.

(3) The commission shall maintain a registration list

which shall contain the information required under paragraph

(1) and which shall be available for public inspection at the

offices of the commission and on the commission's publicly

accessible Internet website.

contained in this chapter, a commissioner shall:

(1) Not accept any discount, gift, gratuity,

compensation, travel, lodging or other thing of value,

directly or indirectly, from any applicant , licensed racing

entity, affiliate, subsidiary or intermediary of an applicant

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or a licensed racing entity, permittee, registrant or

licensed entity representative.

(2) Disclose a conflict of interest and recuse himself

from any hearing or other proceeding in which the

commissioner's objectivity, impartiality, integrity or

independence of judgment may be reasonably questioned due to

the commissioner's relationship or association with a party

connected to any hearing or proceeding or a person appearing

before the commission.

(3) Refrain from any financial or business dealing which

would tend to reflect adversely on the commissioner's

objectivity, impartiality or independence of judgment.

(4) Not hold or campaign for public office, hold an

office in any political party or political committee, as

defined in 4 Pa.C.S. § 1513(d) (relating to political

influence), contribute to or solicit contributions to a

political campaign, political party, political committee or

candidate, publicly endorse a candidate or actively

participate in a political campaign.

(5) Avoid impropriety and the appearance of impropriety

at all times and observe standards and conduct that promote

public confidence in the oversight of horse racing.

(6) Comply with any other laws, rules or regulations

relating to the conduct of a commissioner.

(d) Ex parte communications.--

(1) A commissioner or hearing officer may not engage in

any ex parte communication with any person.

(2) If a commissioner or hearing officer received or

engaged in an ex parte communication, a commissioner or

hearing officer shall inform the director of the appropriate

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bureau who shall notify all parties directly affected by the

anticipated vote or action of the commissioner or hearing

officer related to the ex parte communication of the

substance of the communication and provide the parties with

an opportunity to respond.

(3) A commissioner or hearing officer who engaged in or

received an ex parte communication shall disqualify himself

from the hearing or proceeding related to the ex parte

communication if the context and substance of the

communication creates substantial reasonable doubt as to a

commissioner's or hearing officer's ability to act

objectively, independently or impartially.

(4) A commissioner or hearing officer who engaged in or

received an ex parte communication and elects not to

disqualify himself from the hearing or proceeding shall state

the reasons for not disqualifying himself on the record prior

to the commencement of the hearing or proceeding.

(5) If a commissioner disqualifies himself under this

subsection, a supermajority vote under this act shall consist

of the remaining commissioners.

(6) Failure of a hearing officer who received or engaged

in an ex parte communication to disqualify himself under this

subsection shall be grounds for appeal to the commission.

(7) (6) Failure of a commissioner who received or

engaged in an ex parte communication to disqualify himself

under this subsection shall be grounds for appeal to a court

of competent jurisdiction if the commission action being

appealed could not have occurred without the participation of

the commissioner.

(8) (7) This subsection shall not preclude a

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commissioner from consulting with other commissioners

individually if the consultation complies with 65 Pa.C.S. Ch.

7 (relating to open meetings) or with commission employees or

independent contractors whose functions are to assist the

commission in carrying out its adjudicative functions.

Section 210-A. Financial and employment interests.

No owner, officer, manager or employee of an applicant or

licensed racing entity or their immediate family shall accept

gifts from breeders, owners, trainers or other individuals who

participate in the conduct of horse racing in this Commonwealth.

For purposes of this section, the term "immediate family" shall

mean spouse, parent, brother, sister or child.

Section 211-A. Officials at horse race meetings.

The commission shall approve and assign all qualified judges

and starters for horse race meetings. For standardbred horse

race meetings, no person shall be approved or assigned as a

judge or starter unless the person is licensed by the United

States Trotting Association as a duly qualified pari-mutuel race

meeting official. All officials shall enforce the law and shall

provide written reports of the activities and conduct of horse

race meetings to the commission. The compensation of these

officials shall be paid by the COMMISSION AND REIMBURSED BY THE

licensed racing entities.

Section 212-A. (Reserved).

Section 213-A. Licenses OCCUPATIONAL LICENSES for individuals.

(a) General rule.--The commission shall develop a licensing,

permitting or other classification system for the regulation of

vendors, trainers, jockeys, drivers, horseman's organizations,

horse owners, backside area employees and other individuals

participating in horse racing and all other persons required to

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be licensed or permitted as determined by the commission. The

license shall not be a property right.

(b) Fee.--The commission shall fix and may establish classes

for application fees to be paid by individuals. A license or

permit fee shall not exceed $500. All fees shall be paid to the

commission and deposited into the State Racing Fund.

shall be in the form and contain the information as the

commission may require.

(d) Renewal.--All licenses shall be subject to renewal every

three years. Nothing in this act shall be construed to relieve a

licensee of the affirmative duty to notify the commission of any

changes relating to the status of its license or to any other

information contained in the application materials on file with

the commission. The application for renewal shall be submitted

at least 60 days prior to expiration of the license and shall

include an update of the information contained in the initial

application and any prior renewal applications and the payment

of any renewal fee required by the commission. A license for

which a completed renewal application and fee, if required, has

been received by the commission shall continue in effect unless

and until the commission sends written notification to the

holder of the license that the commission has denied the renewal

of the license.

(e) Licenses.--The commission may issue one of the

following:

(1) A temporary license for four months within a 12-

month period pending a final determination.

(2) A conditional license upon the terms and conditions

as necessary to administer this act.

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(f) Processing and issuance.--The commission shall adopt

regulations to fix the manner by which licenses are processed

and issued.

(g) Action on applications.-- The following shall apply:

(1) The commission may not issue a license or permit

under this section to an individual who has been convicted in

a jurisdiction of a felony offense, a misdemeanor gambling

offense or a fraud or misrepresentation in connection with

horse racing or breeding, unless 15 years has passed from the

date of conviction of the offense.

(2) Following expiration of a period applicable to an

applicant under paragraph (1), in determining whether to

issue a license or permit to an applicant, the commission

shall consider the following factors:

(i) The nature of the applicant's involvement with

horse racing.

(ii) The nature and seriousness of the offense or

conduct.

(iii) The circumstances under which the offense or

conduct occurred.

(iv) The age of the applicant when the offense or

conduct occurred.

(v) Whether the offense or conduct was an isolated

or a repeated incident.

(vi) Any evidence of rehabilitation, including good

conduct in the community, counseling or psychiatric

treatment received and the recommendations of persons who

have substantial contact with the applicant.

(g.1) Denial.--The commission may deny an application for a

license or permit or suspend, revoke or refuse to renew a

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license or permit issued under this section if it determines

that the applicant, licensee or permittee meets any of the

following:

(1) (Reserved).

(2) Has been convicted of any violation or attempts to

violate any law, rule or regulation of horse racing in any

jurisdiction.

(3) Has been convicted of an offense under 18 Pa.C.S. §

5511 (relating to cruelty to animals).

(4) Has violated a rule, regulation or order of the

commission.

(5) Has been convicted in any jurisdiction of an offense

related to fixing or rigging horse races, including 18

Pa.C.S. §§ 4109 (relating to rigging publicly exhibited

contest) 7102 (relating to administering drugs to race

horses), or any similar crime in any other jurisdiction,

unless the conviction has been overturned on appeal under the

laws of the jurisdiction of the original finding or a pardon

has been issued.

(6) Has not demonstrated by clear and convincing

evidence that the applicant or licensee:

(i) Is a person of good character, honesty and

integrity.

(ii) Is a person whose prior activities, criminal

record, if any, reputation, habits and associations:

(A) Do not pose a threat to the public interest

or the effective regulation and control of horse

racing.

(B) Do not create or enhance the danger of

unsuitable, unfair or illegal practices, methods and

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activities in the conduct of horse racing or the

carrying on of the business and financial

arrangements incidental to the conduct of horse

racing.

(h) Inspection.--The commission shall have the right to

inspect all contracts between licensed racing entities and

vendors for goods and services. The commission shall adopt

regulations to require vendors to disclose all principal owners

and officers and a description of their interests in the

vendors' businesses. Failure to disclose this information shall

constitute grounds to deny, to revoke or to suspend any vendor's

license issued under this act.

(i) Revocation or failure to renew.--In the event of a

revocation or failure to renew, the applicant's authorization to

conduct previously approved activity shall immediately cease and

all fees paid in connection therewith shall be deemed to be

forfeited. In the event of a suspension, the applicant's

authorization to conduct the previously approved activity shall

immediately cease until the commission has notified the

applicant that the suspension is no longer in effect.

(j) Hearings.--The commission may suspend a license under

subsection (i) pending a hearing on the matter, which must occur

within 10 days of the suspension. THE COMMISSION OR ITS DIRECTOR

MAY GRANT A SUPERSEDEAS, IF REQUESTED, PENDING A FINAL

RESOLUTION OF THE MATTER.

(k) Reciprocity.--The commission shall not grant licenses to

residents of states that prohibit the grant of licenses to

residents of this Commonwealth on the basis of in-state

preference.

(l) Criminal action.--

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(1) Each district attorney shall have authority to

investigate and to institute criminal proceedings for a

violation of this act.

(2) In addition to the authority conferred upon the

Attorney General under the act of October 15, 1980 (P.L.950,

No.164), known as the Commonwealth Attorneys Act, the

Attorney General shall have the authority to investigate and,

following consultation with the appropriate district

attorney, to institute criminal proceedings for a violation

of this act. A person charged with a violation of this act by

the Attorney General shall not have standing to challenge the

authority of the Attorney General to investigate or prosecute

the case, and, if any such challenge is made, the challenge

shall be dismissed and no relief shall be available in the

courts of this Commonwealth to the person making the

challenge.

(m) Regulatory action.--Nothing contained in subsection (l)

shall be construed to limit the existing regulatory or

investigative authority of an agency or the Commonwealth whose

functions relate to persons or matters within the scope of this

part.

(n) Inspection, seizure and warrants.--

(1) The commission, the Attorney General and the

Pennsylvania State Police shall have the authority without

notice and without warrant to do all of the following in the

performance of their duties:

(i) Inspect and examine all premises where horse

racing is conducted, or where records of these activities

are prepared or maintained.

(ii) Inspect all equipment and supplies in, about,

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upon or around premises referred to in subparagraph (i).

(iii) Seize, summarily remove and impound equipment

and supplies from premises referred to in subparagraph

(i) for the purposes of examination and inspection.

(iv) Inspect, examine and audit all books, records

and documents pertaining to a licensee's operation.

(v) Seize, impound or assume physical control of any

book, record, ledger or device.

(2) The provisions of paragraph (1) shall not be deemed

to limit warrantless inspections except in accordance with

constitutional requirements.

(3) To further effectuate the purposes of this chapter,

the commission and the Pennsylvania State Police may obtain

administrative warrants for the inspection and seizure of

property possessed, controlled, bailed or otherwise held by

an applicant, licensee, permittee, intermediary, subsidiary,

affiliate or holding company.

Section 214-A. Providers.

Beginning at the renewal of an existing contract or execution

of a new contract, a person that provides totalisator services

to a licensed person RACING ENTITY located in this Commonwealth

shall be licensed by the commission and remit an annual license

fee not to exceed $100,000. The license fee shall be deposited

in the State Racing Fund. The provider shall submit information

on operating systems and procedures as required by the

commission.

Section 215-A. Power of commission to impose fines.

(a) General rule.--The commission may impose administrative

fines upon any licensed or unlicensed racing entity, association

or person participating in horse racing at which pari-mutuel

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wagering is conducted, other than as a patron, for a violation

of any provision of this act or rule or regulation of the

commission, not exceeding $100,000 for each violation. Each day

may be considered a separate violation. Fines shall be deposited

in the State Racing Fund and may be appropriated for the

enforcement of this act.

(b) Interests.--

(1) No owner, officer or employee of a licensed racing

entity or their immediate family shall have any direct or

indirect interest in a race horse that is participating in a

race at a meet HORSE RACE MEETING at which the person or

relative listed under this paragraph holds any interest in

the licensed racing entity conducting the meet HORSE RACE

MEETING or in the racetrack facility. For the purposes of

this paragraph, the term "immediate family" shall mean

spouse, parent, brother, sister or child.

(2) The commission shall impose a fine upon any person

for a violation of this subsection in accordance with

subsection (a).

Section 216-A. Admission to racetrack.

(a) Power of licensed racing entity.--Except as provided in

subsection (b), a licensed racing entity may refuse admission to

and eject from the RACETRACK enclosure of the racetrack operated

by the licensed racing entity, any person licensed by the

commission under this act and employed at an occupation at the

racetrack if the person's presence is deemed detrimental to the

best interests of horse racing and after citing the reasons for

the determination. The action of the licensed racing entity, if

refusing the person admission to or ejecting the person from a

race meeting ground or RACETRACK enclosure, shall have immediate

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effect. The person refused admission or ejected shall receive a

hearing before the commission, if requested, pursuant to rules

and regulations adopted for that purpose by the commission and a

decision rendered following that hearing.

(b) Admission.--A licensed racing entity may not refuse

admission to or eject a law enforcement official, commission

member or employee or employee of the Department of Revenue

while the official is engaged in the performance of the

individual's official duties.

Section 217-A. Security personnel.

(a) General rule.--The commission shall require licensed

racing entities to employ persons as security. Designated

security personnel :

(1) Shall refer possible violations of the criminal laws

of this Commonwealth within the racetrack or enclosure to law

enforcement.

(2) May interrogate, eject or exclude from the racetrack

or enclosure any persons suspected of violating a rule or

regulation promulgated by the commission in accordance with

section 216-A, or any person whose presence this is, in the

judgment of the commission LICENSED RACING ENTITY ,

inconsistent with orderly or proper conduct of a HORSE race

meeting or whose presence or conduct is deemed detrimental to

the best interests of horse racing.

(3) May not interrogate, eject or exclude from the

racetrack or enclosure any person because of the race, creed,

color, sex, sexual orientation, national origin or religion

of that person.

(b) Penalty.--An individual found within a racetrack or

enclosure after having been ejected therefrom shall, upon

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conviction, be guilty of a summary offense and be sentenced to

pay a fine of not more than $500.

Section 218.1-A. Interstate simulcasting.

The commission may approve the application of a licensed

racing entity to electronically televise simulcasts of horse

races to be operated by the licensed racing entity at the

racetrack enclosure where a horse race is being conducted

during, between, before or after posted races for that racing

day. Each simulcast of horse races from outside this

Commonwealth shall comply with the Interstate Horseracing Act of

1978 (Public Law 95-515, 15 U.S.C. § 3001 et seq.). All forms of

pari-mutuel wagering under section 221-A shall be allowed on

horse races to be televised by simulcasting. The commission

shall promulgate regulations regarding the wagering and the

operation of interstate simulcasting of horse racing. All money

wagered on horse races shall be computed in the amount of money

wagered each racing day for purposes of taxation under section

224-A.

Section 219-A. Televised simulcastings.

(a) Host licensees.--Upon request by a licensed racing

entity, the commission may designate the entity as a host

licensee, authorized to maintain common pari-mutuel pools on

international and interstate races transmitted to and from the

racetrack enclosures within this Commonwealth. All simulcasts of

horse races shall comply with the provisions of the Interstate

Horseracing Act of 1978 (Public Law 95-515, 15 U.S.C. § 3001 et

seq.) and the laws of each state involved, placed or transmitted

by an individual in one state via telephone, Internet or other

electronic media and accepted and maintained in common pari-

mutuel pools. The designation as a host licensee for

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international and interstate simulcast races shall be limited to

licensed racing entities which comply with 4 Pa.C.S. § 1303(d)

(relating to additional Category 1 slot machine license

requirements).

(b) Simulcasts.--The following apply:

(1) Cross simulcasting of the races described in

subsection (a) shall be permitted if all amounts wagered on

the races in this Commonwealth are included in common pari-

mutuel pools. A host licensee seeking permission to cross

simulcast must obtain approval from the commission.

(2) Forms of pari-mutuel wagering shall be allowed on

horse races to be televised by simulcasting. The commission

may permit pari-mutuel pools in this Commonwealth to be

combined with pari-mutuel pools created under the laws of

another jurisdiction and may permit pari-mutuel pools created

under the laws of another jurisdiction to be combined with

pari-mutuel pools in this Commonwealth. The commission shall

promulgate regulations necessary to regulate wagering on

televised simulcasts.

on horse races shall be computed by the amount of money wagered

each racing day for purposes of taxation under section 224-A.

Thoroughbred races shall be considered a part of a thoroughbred

horse race meeting and standardbred horse races shall be

considered a part of a standardbred horse race meeting.

Section 220-A. Place and manner of conducting pari-mutuel

wagering.

(a) Wagering location.--A licensed racing entity shall

provide a location during a horse race meeting within the

racetrack enclosure where the licensed racing entity shall

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operate the pari-mutuel system of wagering by its patrons on the

results of horse races held at the racetrack or televised to the

racetrack enclosure by simulcasting under section 219-A. The

licensed racing entity shall erect a sign or board compatible

with the totalisator systems which shall display all of the

following:

(1) The approximate straight odds on each horse in any

race.

(2) The value of a winning mutuel ticket, straight,

place or show on the first three horses in the race.

(3) The elapsed time of the race.

(4) The value of a winning daily double ticket, if a

daily double is conducted, and any other information that the

commission deems necessary to inform the general public.

(b) Equipment.--The commission may test and examine the

equipment to be used for the display of the information under

subsection (a).

operate electronic wagering on horse racing in accordance with

all of the following:

(1) Messages to place wagers shall be to a place within

the racetrack enclosure.

(2) Money used to place wagers under this subsection

shall be on deposit in an amount sufficient to cover the

wager at the racetrack where the account is opened.

The commission may promulgate regulations necessary to regulate

electronic wagering for horse racing.

(d) Taxation.--Money wagered as a result of electronic

wagering shall be included in the amount wagered each racing day

for purposes of taxation under section 224-A and shall be

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included in the same pari-mutuel pools for each posted race.

Electronic wagering shall be operated by the licensed racing

entity or by a duly licensed vendor.

(e) Conditions.--

(1) A licensed racing entity shall only accept and

tabulate a wager by a direct request via electronic media

from the holder of an electronic wagering account. Only the

holder of the electronic wagering account shall place a

wager.

(2) Any person who violates this subsection commits a

misdemeanor of the first degree.

(f) Primary market area.--

(1) No licensed racing entity may accept a wager or

establish electronic wagering for any person located in the

primary market area of a racetrack, other than the racetrack

at which the licensed racing entity is conducting a race

meeting.

(2) Nothing in this subsection shall be construed to

prohibit a licensed racing entity from accepting a wager from

or establishing an electronic wagering account for any person

located in the primary market area of the racetrack where the

licensed racing entity is conducting a meet. If two tracks

share the primary market area, both racetracks shall have

equal rights to the market in the shared area.

Section 221-A. Pari-mutuel wagering at nonprimary locations.

(a) Nonprimary locations.--The following shall apply:

(1) Notwithstanding any other provision of this act,

beginning January 1, 2017, the commission may approve a

licensed racing entity to continue to operate a nonprimary

location where it has conducted pari-mutuel wagering on horse

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races conducted by the licensed racing entity. The licensed

racing entity may continue to conduct pari-mutuel wagering at

the location on horse races conducted by another licensed

racing entity, which horse races may be televised to the

location or on horse races simulcast to the location under

section 216-A, provided that:

(i) A licensed racing entity has not established a

nonprimary location within the primary market area of any

racetrack other than a racetrack where the licensed

racing entity conducts horse race meetings. Establishment

of a nonprimary location by a licensed racing entity

within the primary market area of a racetrack where the

licensed racing entity conducts horse race meetings shall

require approval of the commission.

(ii) A licensed racing entity has not established a

nonprimary location within the secondary market area of a

racetrack if the nonprimary location is approved by the

commission.

(iii) A licensed racing entity has not established a

nonprimary location in an area outside the primary and

secondary market areas of any racetrack if the location

is approved by the commission.

(2) Except as provided under paragraph (1), no

additional licenses shall be permitted.

(3) The commission shall annually conduct inspections of

the primary facility.

(4) The regulatory authority of the commission shall

apply to nonprimary locations and any employees or vendors of

the licensed racing entity establishing the nonprimary

location.

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(b) Taxation and records.--Money wagered at all primary and

nonprimary locations under this act shall be included in common

pari-mutuel pools. Money wagered by patrons on the races shall

be computed by the amount of money wagered each racing day for

purposes of taxation under section 224-A. The licensed racing

entity conducting the HORSE race meeting and maintaining the

pari-mutuel pools shall maintain accurate records of the amount

wagered in each pool from every primary and nonprimary location.

calculated for each location where pari-mutuel wagering is being

conducted. If wagering has taken place at a nonprimary location

where the wagering is conducted by a licensed racing entity

other than the licensed racing entity conducting the HORSE race

meeting, the licensed racing entity conducting the HORSE race

meeting shall retain any money to which it is entitled by

agreement. The licensed racing entity conducting the meeting

shall pay over the balance of the retained money to the licensed

racing entity conducting the wagering at the nonprimary

location.

(d) Payment of purses.--A licensed racing entity conducting

a HORSE race meeting where pari-mutuel wagering is conducted at

one or more nonprimary locations shall distribute money to the

horseman's organization representing a majority of owners and

trainers at its racetrack , or in accordance with the practice of

the parties, to be used for payment of purses at that racetrack,

as follows:

(1) Except as provided for in paragraphs (2), (3), (4)

and (5), an amount equal to but not less than 6% of the daily

gross wagering handle on the races at a nonprimary location.

(2) When the gross wagering handle on the races at a

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nonprimary location on a given day is less than $30,000, the

percentage may not be less than 3%.

(3) When the gross wagering handle on the races at a

nonprimary location on a given day is between $30,000 and

$75,000, the percentage may not be less than 4.75%.

(4) Whenever a nonprimary location is within the primary

market area of a licensed racing entity other than the

licensed racing entity conducting the races, the applicable

percentage shall be distributed one-half to the horseman's

organization representing a majority of owners and trainers

at the racetrack or in accordance with the practice of the

parties.

(5) Where the HORSE race meeting is being conducted to

be used for the payment of purses at the racetrack and one-

half to the horseman's organization, or in accordance with

the practice of the parties, at the racetrack within the

primary market area to be used for the payment of purses at

the racetrack.

Nothing in this subsection shall be construed to prevent a

licensed racing entity from agreeing to distribute amounts

greater than the percentages set forth in this subsection.

However, if no alternative agreement has been reached, the total

percentage for purses under this subsection shall be paid in

accordance with the minimum percentages set forth in this

subsection.

(e) Other payments.--Notwithstanding any other provision of

this act, a nonprimary location may be established within the

primary market area of a racetrack by agreement between the

licensed racing entity and the horseman's organization

representing a majority of the owners and trainers at the

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racetrack specifying the total percentage of handle wagered at

the nonprimary location to be distributed to the horseman's

organization, or in accordance with the practice of the parties,

to be used for the payment of purses at that racetrack. If no

agreement is reached covering the locations, the total

percentage to be paid for purses shall be the same as that

applied to on-track wagering at the racetrack located within the

primary market area.

Section 222-A. Books and records of pari-mutuel wagering.

Every licensed racing entity that conducts a horse race

meeting at which pari-mutuel wagering is authorized, shall

maintain books and records that clearly show by separate record

the total amount of money contributed to every pari-mutuel pool.

The Department of Revenue or its authorized representative shall

have access to examine all books and records and ascertain

whether the proper amount due to the State is being paid by the

licensed racing entity.

Section 223-A. Filing of certain agreements with the

commission.

A licensed racing entity shall promptly file with the

commission any lease agreement concerning any concession, labor

management relation, hiring of designated classes of officers,

employees or contractors specified by the commission or any

other contract or agreement as the commission may prescribe.

Section 224-A. State Racing Fund and tax rate.

(a) Fund.--There is hereby established in the State Treasury

the State Racing Fund. ALL MONEY DEPOSITED IN THE FUND, EXCEPT

MONEY DEPOSITED IN RESTRICTED ACCOUNTS, SHALL BE ANNUALLY

APPROPRIATED BY THE GENERAL ASSEMBLY FOR THE ADMINISTRATION AND

ENFORCEMENT OF THIS ACT AND FOR THE OVERSIGHT AND PROMOTION OF

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HORSE RACING IN THIS COMMONWEALTH. A licensed racing entity that

conducts horse race meetings or a licensed advance deposit

account wagering entity shall pay a tax to the Department of

Revenue for deposit in the State Racing Fund.

(b) Tax rate.--The tax imposed on a licensed racing entity

or licensed advance deposit account wagering entity shall be

1.5% of the amount wagered each racing day and 2.5% of the total

amount on an exacta, daily double, quinella and trifecta wager.

subsection (b) and any interest shall be used solely for the

administration and enforcement of this act including:

(1) Funds to the commission in an amount appropriated by

the General Assembly.

(2) Funds to the Department of Revenue in an amount

appropriated by the General Assembly.

(d) Breakage.--All breakage retained under section 225-A by

licensed racing entities that conduct horse race meetings shall

be distributed in the following manner:

(1) Seventy-five percent of the breakage shall be paid

to the Department of Revenue for credit to the State Racing

Fund.

(2) Twenty-five percent of the breakage shall be

retained by the licensed corporations RACING ENTITY to be

used solely for purses to the horsemen. All breakage money

due to licensed racing entities for the purses for claiming

and nonclaiming races under this paragraph but not expended

as a result of a race cancellation shall be carried forward

to the next succeeding horse race meeting by licensed racing

entities to be used for claiming and nonclaiming races which

restrict entry to horses sired in this Commonwealth under the

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provisions of this paragraph.

(e) Remainder.--The remainder of the money shall be

distributed as follows:

(1) An amount equivalent to 1% of the amount wagered

each racing day at thoroughbred horse race meetings shall be

paid by the Department of Revenue from the State Racing Fund

for credit to the Pennsylvania Breeding Fund established

under section 226-A.

(2) An amount equivalent to 1.5% of the amount wagered

each racing day at standardbred horse race meetings shall be

paid by the Department of Revenue from the State Racing Fund

through the Department of Revenue for credit to the

Pennsylvania Sire Stakes Fund established under section 227-

(3) The remainder of the amount wagered each racing day

shall be deposited in the State Racing Fund , for

appropriation for the promotion of horse racing .

(f) Other revenues.--The State Racing Fund may also receive

moneys from any other source, including, but not limited to

appropriations made by the General Assembly.

Section 225-A. Pari-mutuel pool distribution.

(a) Distribution.--A licensed racing entity shall distribute

money in a pari-mutuel pool to the holders of winning tickets

presented for payment before the first day of April of the year

following the date of purchase. After April 1 of the year

following the year of purchase, a licensed racing entity shall

forward the necessary funds held for uncashed tickets to the

Department of Revenue. The funds shall be deposited into the

State Racing Fund.

(b) Remainder.--The remainder of the money shall be retained

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by the licensed racing entity in the following manner:

(1) Seventeen percent of the money plus the breakage

from regular wagering pools or 19% of the money plus the

breakage from regular wagering pools for licensed racing

entities whose daily total in all pari-mutuel pools averaged

less than $300,000.

(2) Twenty percent of the money plus breakage from the

exacta, daily double, quinella and other wagering pools as

determined by the commission.

(3) At least 26%, but no more than 35%, from the

trifecta or other wagering pools as determined by the

commission.

percentages upon approval of the commission.

Section 226-A. Pennsylvania Breeding Fund.

(a) Establishment.--There is hereby created a restricted

account in the State Racing Fund to be known as the Pennsylvania

Breeding Fund which shall consist of the money deposited under

section 225-A and which shall be distributed by the Department

of Revenue.

(b) Awards from the Pennsylvania Breeding Fund.--The

Department of Revenue shall distribute money from the

Pennsylvania Breeding Fund as follows:

(1) An award of 30% of the purse earned by every

registered thoroughbred racing horse sired in this

Commonwealth by a registered Pennsylvania sire at the time of

conception of the registered thoroughbred racing horse sired

in this Commonwealth, or an award of 20% of the purse earned

by every registered thoroughbred racing horse sired in this

Commonwealth sired by a nonregistered sire, which finishes

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first, second or third in any race conducted by a licensed

racing entity under this act shall be paid to the breeder of

said registered thoroughbred racing horse sired in this

Commonwealth. A single award under this paragraph may not

exceed 1% of the total annual fund money.

(2) An award of 10% of the purse earned by any

thoroughbred racing horse sired in this Commonwealth which

finishes first, second or third in any race conducted by a

licensed racing entity under this act shall be paid to the

owner of the registered Pennsylvania sire which regularly

stood in Pennsylvania at the time of conception of the

thoroughbred racing horse sired in this Commonwealth. A

single award under this paragraph may not exceed 0.5% of the

total annual fund money.

(3) An award of 10% of the purse earned by any

registered thoroughbred racing horse sired in this

Commonwealth which finishes first in any race conducted by a

licensed racing entity under this act not restricting entry

to registered thoroughbreds racing horse sired in this

Commonwealth shall be paid to the licensed owner of said

registered thoroughbred horse sired in this Commonwealth at

the time of winning. A single award under this paragraph may

not exceed 0.5% of the total annual fund money.

of the total of the estimated Pennsylvania Breeding Fund money

remaining each year after the deduction of expenses related to

the administration and development of the Pennsylvania Breeding

Fund program and the payment of breeder, stallion and owner

awards, shall be divided among the licensed racing entities that

conduct thoroughbred horse race meetings in direct proportion to

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the rate by which each licensed racing entity generated the fund

money during the previous year to be used solely for purses for

Pennsylvania Breeding Fund stakes races which restrict entry to

registered thoroughbred racing horse sired in this Commonwealth.

(d) Remaining funds.--The Pennsylvania Breeding Fund money

remaining following disbursements as directed in subsection (b)

(1), (2) and (3) and subsection (c) shall be divided among the

licensed racing entities that conduct thoroughbred horse race

meetings in direct proportion to the rate by which each licensed

racing entity generated the fund money during the previous year

to be used for purses as follows:

(1) Claiming and nonclaiming Pennsylvania Breeding Fund

races which restrict entry to registered thoroughbred racing

horses sired in this Commonwealth.

(2) Claiming and nonclaiming Pennsylvania Breeding Fund

races which prefer registered thoroughbred racing horses

sired in this Commonwealth as starters. In these races,

should eight or more registered thoroughbred racing horses

sired in this Commonwealth pass the entry box, the race shall

be considered closed to horses other than registered

thoroughbred racing horses sired in this Commonwealth.

(e) Funds not expended.--Pennsylvania Breeding Fund money

due to licensed racing entities, as outlined in subsections (c)

and (d), but not expended during the calendar year may be

carried forth in the fund on the accounts of the licensed racing

entities to be expended during the succeeding year in addition

to the racing entities' fund money annually due to them for

purses.

(e.1) Committee.--There is hereby established the

Pennsylvania Breeding Fund Advisory Committee within the

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commission. The committee shall consist of five individuals, who

are residents of this Commonwealth, to be appointed by the

commission by June 1 of each year based on the recommendation of

the groups identified in this subsection. If a member other than

a commissioner has not been recommended by June 1 of each year,

the commission shall make an appointment for the organization

failing to so recommend a member of the committee. The committee

shall assist and advise the commission on the regulation of

horse racing under this act but shall have no power in

administering the fund. Members of the advisory committee shall

not receive compensation or reimbursements for participation on

the committee. The committee shall consist of the following

members:

(1) Two members representing the Pennsylvania Horse

Breeders' Association.

(2) One member representing licensed racing entities.

(3) One member representing the association representing

horsemen racing in Pennsylvania.

(4) One member of the commission.

(f) Pennsylvania Horse Breeders' Association.--The

commission shall contract with the Pennsylvania Horse Breeders'

Association as the organization responsible for the registration

and records of thoroughbred racing horses sired in this

Commonwealth. The Pennsylvania Horse Breeders' Association shall

advise the commission when called upon and shall determine the

qualifications for thoroughbred racing horses sired in this

Commonwealth and Pennsylvania sires. Registration and records of

the association shall be official records of the Commonwealth

and shall be subject to the act of February 14, 2008 (P.L.6,

No.3), known as the Right-to-Know Law. At the close of each

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calendar year, the Pennsylvania Horse Breeders' Association

shall submit to the commission for its approval an itemized

budget of projected expenses for the ensuing year relating to

the administration and development of the Pennsylvania Breeding

Fund Program. The commission shall reimburse the Pennsylvania

Horse Breeders' Association for those expenses actually incurred

in the administration and development of the Pennsylvania

Breeding Fund Program from the Pennsylvania Breeding Fund, no

more than on a quarterly basis. No more than 5% of the fund may

be utilized for administrative costs.

Section 227-A. Pennsylvania Sire Stakes Fund.

(a) Establishment.--There is created a restricted account in

the State Racing Fund to be known as the Pennsylvania Sire

Stakes Fund which shall consist of the money deposited under

section 225-A and which shall be administered by the commission.

(b) Distribution and use of funds.--Funds shall be

distributed as follows:

(1) Sixty percent of the money remaining in the excess

fund account of the Pennsylvania Sire Stakes Fund at the end

of the calendar year in which this subsection is enacted

shall be distributed to licensed racing entities that conduct

standardbred horse race meetings to be used in the next

succeeding calendar year as purse money for Pennsylvania-

sired horses. The remaining 40% of the money in the excess

fund account at the end of the calendar year of the enactment

of this subsection, together with the interest earned on that

money, shall be distributed to licensed racing entities that

conduct standardbred horse race meetings to be used in the

next succeeding calendar year as purse money for

Pennsylvania-sired horses.

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(2) After deduction of sufficient funds to cover the

commission's cost of administration, 80% of all remaining

money in the Pennsylvania Sire Stakes Fund at the end of the

calendar year shall be distributed to licensed racing

entities that conduct standardbred horse race meetings to be

used as purse money for Pennsylvania-sired horses. The

commission may allocate up to a total of 40% of the amount to

be distributed to licensed racing entities in a calendar year

for use for a series of championship final races at the

racetracks of licensed business entities that conduct

standardbred horse race meetings. The commission shall

distribute the money to these championship final races in an

equal amount for each sex, age and gait for two-year-old

trotters and pacers and three-year-old trotters and pacers

based on conditions establishing eligibility to these final

events. No pari-mutuel standardbred racetrack shall be

awarded more than 50% of the championship final races in any

calendar year. The commission shall schedule these final

events so as to evenly alternate classes at each racetrack

each year. After the allocation for the championship final

races has been determined, the remaining funds to be

distributed to licensed racing entities that conduct

standardbred horse race meetings shall be divided equally

among the licensed racing entities. Each licensed racing

entity shall divide the funds received equally for each of:

(i) four two-year-old races; one pace for colts, one

pace for fillies, one trot for colts and one trot for

fillies; and

(ii) four three-year-old races; one pace for colts,

one pace for fillies, one trot for colts and one trot for

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fillies.

for the respective races. The purse money shall be in addition

to any entry fees or other funds available.

(d) Entry restriction.--Entry for these races shall be

limited to standardbred horses which were sired by a

standardbred stallion regularly standing in Pennsylvania and

each race shall be designated a Pennsylvania sire stakes race.

The commission shall adopt regulations as necessary to

administer the entry restriction.

Section 228-A. Fair fund proceeds.

(a) Distribution.--The Department of Agriculture shall

distribute money in the fair fund annually, on or before March

1, for reimbursement for each county agricultural society and

each independent agricultural society conducting standardbred

horse racing during its annual fair, other than races for two-

year-old colts and fillies and three-year-old colts and fillies,

an amount of money equal to that used during their annual fair

as purse money for standardbred horse racing, track and stable

maintenance, starting gate rental and the cost of all

standardbred horse racing officials required during their annual

fair. The reimbursement amount may not be more than $13,000, a

minimum of $4,000 of which must be used for purse money and the

balance of the allotment per fair, not used for purse money over

the minimum $4,000 allotment, shall be used for the specific

purposes referenced above or otherwise the allotment shall be

retained in the fund.

(b) Inspection.--The Department of Agriculture shall

annually inspect each track facility at a county fair and advise

each operating fair about track maintenance which is necessary

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to ensure adequate racing surface during the course of scheduled

fairs and racing events. If it is the opinion of the Department

of Agriculture that the fair society or event sponsor is not

adequately financing track maintenance, the Department of

Revenue shall surcharge the fair fund account of the fair

society or event sponsor to effectuate the remediation.

Section 229-A. Hearing.

An applicant, licensee, permittee or other person whose

application has been denied or whose license or permit has been

suspended, revoked or not renewed may request a hearing before

the commission. The provisions of 2 Pa.C.S. Chs. 5 Subch. A

(relating to practice and procedure of Commonwealth agencies)

and 7 Subch. A (relating to judicial review of Commonwealth

agency action) shall apply.

Section 230-A. Prohibition of wagering.

No commission member COMMISSIONER or employee of the

commission shall wager upon the outcome of any horse race

conducted at or simulcast to a track at which pari-mutuel

wagering is conducted by any licensed racing entity of REGULATED

BY the commission. No licensed racing entity shall permit any

person who is under 18 years of age to wager at a horse race

meeting conducted by the licensed racing entity. No licensed

racing entity shall permit any person who is under 18 years of

age to attend a horse race meeting conducted by the licensed

racing entity unless the person is accompanied by a parent or

guardian. This section shall not be construed to prohibit

persons under 18 years of age, who are legally employed, from

being upon the racetrack premises for the sole purpose of

engaging in the performance of their duties as employees.

Section 231-A. Veterinarians and State stewards.

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(a) General rule.--The commission shall have the authority

to employ or contract with licensed veterinarians, stewards and

other personnel deemed appropriate by the commission to serve at

each meeting conducted by a licensed racing entity. The

commission may employ or contract with other individuals as

shall be necessary to carry out the responsibilities of this

section.

(b) Costs and compensation.--The costs and compensation of

the horse racing veterinarians, State stewards and other

personnel shall be fixed and paid by the licensed racing entity.

Agriculture COMMISSION may promulgate regulations to oversee

horse racing conducted by a county agricultural society or an

independent agricultural society, as provided for under section

5(1)(iii) and (iv) of the act of July 8, 1986 (P.L.437, No.92),

known as the Pennsylvania Agricultural Fair Act.

Section 232-A. Promotions and discounts.

The commission may approve a licensed racing entity to issue

a free pass, card or badge for a special promotional program and

seasonal discount ticket program.

Section 233-A. Monitoring of wagering on video screens.

A licensed racing entity conducting pari-mutuel wagering

shall display on video screens the approximate odds or

approximate will-pays on each horse for each race as well as a

combination of races, including quinellas, exactas, perfectas

and any other combination or pool of races. A display of

approximate odds or approximate will-pays is not required where

the wager is on horses in four or more races, such as Pick 4,

Pick 5 or Pick 6. In addition to displaying the amount of money

wagered, the approximate odds or approximate will-pays on each

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horse or combination of horses must be shown on video screens in

each wagering division. For trifectas, in lieu of odds or

approximate will-pays, the amount of money being wagered on each

horse to win in the trifecta pool must be displayed on video

screens separately from any other information. Information must

be displayed from the opening of bets or wagering and be

continually displayed until the wagering is closed. At least one

video screen in each wagering division shall display the amount

of money wagered on each horse involved in a trifecta pool.

Section 234-A. Simulcasting.

(a) General rule.--The commission shall permit intrastate

simulcasting of live racing.

(b) Simulcast signal.--The simulcast signal shall be

encoded, and the racetrack receiving the simulcast signal may

not send the signal anywhere other than a public location

authorized under section 219-A.

wagering described in section 225-A are allowed on a race to be

televised by simulcasting under this section.

(d) Regulations.--The commission may promulgate regulations

on wagering and the operation of horse racing.

(e) Computation of money wagered.--The money wagered by a

patron on a race must be computed in the amount of money wagered

each racing day for purposes of taxation under section 224-A.

(f) Thoroughbred and standardbred horse racetracks.--If a

simulcast is between a thoroughbred racetrack and a standardbred

racetrack, the commission has jurisdiction. An approval required

under this section must be received from the commission,

provided that if an agreement is not reached between the

organization representing the horsemen, the licensed racing

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entity may petition a court of common pleas in the county in

which the licensed racing entity's racetrack is located. A court

of common pleas may direct the organization representing the

horsemen to approve the simulcast agreement upon good cause

shown by the licensed racing entity that failure to consent

would be detrimental to the racing industry in this

Commonwealth. The commission may authorize the simulcasting if

the simulcasting will have a significant value to the racing

industry in this Commonwealth.

(g) (F) Definition.--As used in this section, the term

"racing day" consists of a minimum of eight live races, except

at thoroughbred tracks on Breeders' Cup Event Day.

Section 235-A. Commingling.

(a) Applicability.--This section is applicable only to

licensed racing entities that conduct thoroughbred racing.

(b) Race secretary.--The race secretary shall receive

entries and declarations as an agent for the licensed racing

entity for which the race secretary acts. The race secretary or

an individual designated by the licensed racing entity may

receive stakes, forfeits, entrance money, jockey fees and other

fees, purchase money in claiming races and other money that can

properly come into the race secretary's possession as an agent

for the licensed racing entity for which the race secretary or

designee is acting.

maintain a separate account , to be known as a Horsemen's

Account. Money owed to owners in regard to purses, stakes,

rewards, claims and deposits shall be deposited into the

Horsemen's Account. Funds in the account are recognized and

denominated as being the sole property of owners. Deposited

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funds may not be commingled with funds of the licensed racing

entity unless a licensed racing entity established an

irrevocable clean letter of credit with an evergreen clause in

favor of the organization which represents a majority of the

owners and trainers racing with the licensed racing entity . The

minimum amount of the credit must be the greater of $1,000,000

or 110% of the highest monthly balance in the Horsemen's Account

in the immediate prior year. To calculate the monthly balance in

the Horsemen's Account, the sum of the daily balances shall be

divided by the number of days in the month. The evergreen clause

must provide that:

(1) thirty days prior to the expiration of the letter of

credit, the financial institution can elect not to renew the

letter of credit;

(2) upon an election under paragraph (1), the financial

institution must notify the designee of the organization that

represents a majority of the owners and trainers racing with

the licensed racing entity, by registered mail, return

receipt requested, of the election not to renew; and

(3) the financial institution will honor the letter of

credit for six months after expiration.

Purse money earned by owners shall be deposited by the licensed

racing entity in the Horsemen's Account within 48 hours after

the result of the race in which the money was earned has been

declared official and the purse has been released by the

commission.

(d) Accounting.--A licensed racing entity shall designate

individuals authorized to receive and disburse funds from the

Horsemen's Account. Individuals designated under this subsection

shall be bonded to provide indemnity for malfeasance,

20150SB0352PN0505 - 144 -

nonfeasance and misfeasance. A certified copy of the bond shall

be filed with the commission.

(e) Examination, access and records.--The Horsemen's Account

and the investment and deposit schedules relating to the account

are subject to examination, at reasonable times, by a designee

of the organization which represents a majority of the owners

and trainers racing with the licensed racing entity and by the

commission. The individual designated under subsection (d) shall

provide each owner with access, at reasonable times during a

racing day, to the amount of funds in the Horsemen's Account

credited to that owner. At the close of a horse race meeting,

the designated individual shall mail to each owner a record of

deposits, withdrawals and transfers affecting the amount of

funds in the Horsemen's Account credited to that owner.

(f) Auditing and monthly statements.--The Horsemen's Account

shall be audited annually and at any other time determined by

the commission. Monthly statements shall be provided to the

designee of the organization which represents a majority of the

owners and trainers racing with the licensed racing entity and

the commission.

(g) Interest.--Fifty percent of the money earned as interest

on funds in the Horsemen's Account shall be paid to the

organization that represents a majority of the owners and

trainers racing with the licensed racing entity on a weekly

basis. The amount is for the benefit of the horsemen as

determined by the organization that represents the majority of

the owners and trainers racing with the licensed racing entity.

The remaining 50% of the interest earned is for the benefit of

the licensed racing entity that has the responsibility to fund

the costs associated with the administration of the fund.

20150SB0352PN0505 - 145 -

Interest each month must be earned in an amount equal to the

Federal Reserve Discount Rate on the first day of the month.

Section 236-A. Standardbred horse racing purse money.

A licensed racing entity that conducts standardbred racing

must place on deposit with the commission by March 1 of each

year an irrevocable letter of credit equivalent to its average

weekly purse total from the immediate prior year. The commission

shall hold the letter of credit in trust for the standardbred

horsemen racing at that licensed racing entity's horse race

meeting if the purse checks are not issued or insufficient funds

are available to cover the purse checks.

CHAPTER 2-B

ADVANCE DEPOSIT ACCOUNT WAGERING

Section 201-B. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Account." An account for advance deposit account wagering

with a specific identifiable record of deposits, wagers and

withdrawals established by an account holder and managed by the

licensed advance deposit account wagering entity.

"Account holder." An individual who successfully completed

an application and for whom the licensed advance deposit account

wagering entity has opened an account.

"Applicant." A person that has submitted an application for

a license under this act CHAPTER .

"Confidential information." Shall include all of the

following:

(1) The amount of money credited to, debited from,

withdrawn from or present in any particular account holder's

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account.

(2) The amount of money wagered by a particular account

holder on any race or series of races.

(3) The account number and secure personal

identification code of a particular account holder.

(4) The identities of particular licensed racing entity

on which the account holder is wagering or has wagered.

(5) Unless otherwise authorized by the account holder,

the name, address and other information in the possession of

the licensed advance deposit account wagering entity that

would identify the account holder to anyone other than the

commission or the licensed advance deposit account wagering

entity.

"Nominal change in ownership." Th e sale, pledge,

encumbrance, execution of an option agreement or other transfer

of less than 5% of the equity securities or other ownership

interest of a partnership, association, corporation or entity

holding a license .

"Principal." All of the following individuals associated

with a partnership, trust association, limited liability company

or corporation:

(1) The chairman and all members of the board of

directors of a corporation.

(2) All partners of a partnership and all participating

members of a limited liability company.

(3) All trustees and trust beneficiaries of an

association.

(4) The president or chief executive officer and all

other officers, managers and employees who have policy-making

or fiduciary responsibility within the organization.

20150SB0352PN0505 - 147 -

(5) All stockholders or other individuals who own, hold

or control, either directly or indirectly, 5% or more of

stock or financial interest in the collective organization.

(6) Any other employee, agent, guardian, personal

representative, lender or holder of indebtedness who has the

power to exercise a significant influence over the

applicant's or licensee's operation.

"Substantial change in ownership." The sale, pledge,

encumbrance, execution of an option agreement or another

transfer of 5% or more of the equity securities or other

ownership interest of a partnership, association, corporation or

entity holding a license.

"Telephone account wagering." A form of pari-mutuel wagering

where an individual may deposit money in an account at a track

and may place a wager by direct telephone call or by

communication through other electronic media owned by the holder

of the account to the track.

Section 202-B. License required to conduct advance deposit

account wagering.

(a) New applications.--A person, other than a licensed

racing entity engaged in telephone account ELECTRONIC wagering

that offers advance deposit account wagering to individuals

within this Commonwealth shall apply to the commission for a

license under this chapter . Deadlines for new license

applications shall be as follows:

(1) A person that offered advanced deposit account

wagering to residents of this Commonwealth prior to the

effective date of this chapter , shall apply to the commission

for a license by submitting a completed Initial/Renewal

License Application to Conduct Advance Deposit Account

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Wagering form on or before 60 days after the effective date

of this chapter . Between the time that the license

application is submitted and the commission renders a

decision, the person may continue to operate. The commission

shall render a decision within 90 days of receipt of a

completed license application. The license shall be effective

upon approval of the commission.

(2) Any other person shall apply to the commission for a

license by submitting a completed Initial/Renewal License

Application to Conduct Advance Deposit Account Wagering form.

The license shall be effective, and the licensed advance

deposit account wagering entity may begin operations, upon

approval of the commission.

(b) Renewal applications.--A license to conduct advance

deposit account wagering shall be renewed every three years

ANNUALLY in accordance with this chapter . A renewal application

shall be submitted on the Initial/Renewal License Application to

Conduct Advance Deposit Account Wagering form on or before

September 1 of the preceding year. The commission shall render a

decision on the application on or before December 15 of the

preceding year. If approved, a renewal license shall be

effective January 1.

provide the information required, the applicant shall fully

explain and document to the satisfaction of the commission, the

circumstances and shall provide the information promptly upon

being able to do so.

Section 203-B. Licensing costs and fees.-- Costs and fees are as

follows:

(1) The applicant shall pay all costs incurred by the

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commission in reviewing an application for an initial

license, including legal and investigative costs and the cost

of other necessary outside professionals and consultants in

accordance with the following:

(i) As an initial payment for these costs, the

applicant shall submit, along with a license application,

a cashier's check or certified check payable to the

commission in the amount of $50,000.

(ii) Any portion of the payment not required to

complete the investigation shall be refunded to the

applicant within 20 days of the granting, withdrawal or

rejection of the initial license application.

(iii) To the extent additional costs will be

necessary, the applicant shall submit a cashier's check

or certified check payable to the commission in an amount

reasonably requested by the commission within 10 days of

receipt of the request. Failure to submit an additional

requested payment shall result in suspension of the

processing of the license application and may result in

denial of the license.

(2) An applicant for a renewal license shall pay all

reasonable costs incurred by the commission in reviewing a

renewal license, including legal and investigative costs and

the cost of other necessary outside professionals and

consultants in accordance with the following:

(i) The applicant shall submit a cashier's check or

certified check payable to the commission in an amount

reasonably requested by the commission within 10 days of

receipt of request.

(ii) Failure to submit the payment shall result in

20150SB0352PN0505 - 150 -

suspension of the processing of renewing the license and

may result in denial of the license.

(3) The commission may waive the costs contained in

paragraphs (1) and (2), in whole or part if the applicant has

undergone a certification process or other investigative

review by a commission-approved industry or regulatory body.

(4) A license fee of $500,000 shall be payable to the

commission upon issuance of the initial license. An annual A

renewal license fee of $500,000 shall be payable to the

commission. A license shall not be issued until receipt of

the license fee each year. The license fee shall be deposited

in the State Racing Fund.

(5) The commission shall track the additional costs

required to implement and enforce this chapter .

Section 204-B. License application procedures.

(a) Application for license.-- An application for an initial

or renewal license shall be in the form and manner prescribed by

the commission in accordance with this chapter . The commission

may deny a license to an applicant that provides false or

misleading information on or omits material information from the

application. The application shall include all of the following:

(1) The applicant's legal name.

(2) The location of the applicant's principal office.

(3) The name, address and date of birth of each

principal with a five percent or greater share of ownership

or beneficial interest in the applicant.

(4) Audited financial statements for the last three

years or, if the applicant does not have audited financial

statements, financial and other pertinent information as

required by the commission to determine that the applicant is

20150SB0352PN0505 - 151 -

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financially capable of operating as a going concern and

protecting accounts.

(5) A detailed plan of how the advance deposit account

wagering system will operate. The commission may require

changes in the proposed plan of operations as a condition of

granting a license. There shall not be subsequent material

changes in the plan of operations unless ordered by the

commission or until approved by the commission after

receiving a written request.

(6) A list of all personnel processing wagers on races

made by residents of this Commonwealth . This list shall be

kept current and be provided to the commission upon request.

(7) Copies of all documents required under this

subsection by the commission.

(b) Review.--In reviewing an application, the commission may

consider any information, data, report, finding or other factor

available that it considers important or relevant to the

determination of whether the applicant is qualified to hold a

license, including all of the following:

(1) The integrity of the applicant and its principals,

including:

(i) Whether the applicant or its principals are

unsuitable .

(ii) Whether the applicant or its principals have

been a party to litigation over business practices,

disciplinary actions over a business license or refusal

to renew a license.

(iii) Whether the applicant or its principals have

been a party to proceedings in which unfair labor

practices, discrimination or violation of government

20150SB0352PN0505 - 152 -

regulations pertaining to racing or gaming laws was an

issue or bankruptcy proceedings.

(iv) Whether the applicant or its principals have

failed to satisfy judgments, orders or decrees.

(v) Whether the applicant or its principals have

been delinquent in filing tax reports or remitting taxes.

(2) The quality of physical facilities and equipment.

(3) The financial ability of the applicant to conduct

advance deposit account wagering.

(4) The protections provided to safeguard accounts,

including a certification from the licensee's chief financial

officer that account funds will not be commingle d with other

funds as required under this chapter.

(5) The management ability of the applicant and its

principals.

(6) Compliance of the applicant with applicable

statutes, charters, ordinances and administrative

regulations.

(7) The efforts of the applicant to promote, develop and

improve the horse racing industry in this Commonwealth.

(8) The efforts of the applicant to safeguard and

promote the integrity of pari-mutuel wagering in this

Commonwealth.

(9) The economic impact of the applicant upon the

Commonwealth.

Section 205-B. Oral presentation by applicant.

(a) Application.--The application presentation shall be in

accordance with all of the following:

(1) The commission may require an applicant to make an

oral presentation prior to the ruling in order to clarify or

20150SB0352PN0505 - 153 -

otherwise respond to questions concerning the application as

a condition to the issuance or renewal of a license.

(2) The presentation shall be limited to the information

contained in the applicant's application and any supplemental

information relevant to the commission's determination of the

applicant's suitability.

(3) The admission as evidence of the supplemental

information shall be subject to the discretion of the

commission.

(b) Incomplete application.-- If the commission deems an

applicant's application incomplete and does not accept it for

filing, the applicant shall not be entitled to make an oral

presentation.

Section 206-B. Additional information.

The commission may request additional information from an

applicant if the additional information would assist the

commission in deciding whether to issue or renew a license,

including all of the following:

(1) Copies of any documents used by the applicant in

preparing the application.

(2) A list of each contract between the applicant and a

third party related to operations. The commission may review

the contracts at any time upon request.

Section 207-B. Operations.

(a) Prior operations.--Before doing business in this

Commonwealth all of the following are required of a licensee:

(1) Be qualified to do business in this Commonwealth.

(2) Submit a copy of each document required to be filed

with the Department of Revenue and each document related to

an audit or investigation by any Federal, State or local

20150SB0352PN0505 - 154 -

regulatory agency to the commission.

(3) Remit to the commission a copy of each document

required to be filed with any Federal, State or local

regulatory agency.

(b) Requirements.--

(1) A licensee shall submit quarterly reports to the

commission providing amounts wagered by residents in this

Commonwealth and amounts wagered on races in this

Commonwealth.

(2) A licensee shall enter into an agreement with each

licensed racing entity in this Commonwealth on whose races

the licensee offers advance deposit account wagering

regarding payment of host fees and any other applicable fees,

costs or payments of any kind to be paid to the licensed

racing entity. The licensed racing entity and the applicable

horseman's organization shall negotiate a separate agreement

for contributions to the purse account generated by advanced

deposit account wagering.

(3) A licensee shall not commingle account funds with

other funds.

(4) A licensee shall provide quarterly financial

statements to the commission for the first calendar year of

operation if the licensed racing entity does not have audited

financial statements for the last three years as referenced

in section 204-B(a)(4).

(5) A licensee shall use and communicate pari-mutuel

wagers to a totalisator licensed by the commission.

(6) A licensee shall operate and communicate with the

totalisator in such a way as not to provide or facilitate a

wagering advantage based on access to information and

20150SB0352PN0505 - 155 -

processing of wagers by account holders relative to

individuals who wager at licensed racing entities or

simulcast facilities.

(7) All personnel processing wagers made by residents of

this Commonwealth shall be licensed in the jurisdiction where

they are located. If an individual is located in a

jurisdiction that is not a racing jurisdiction or that does

not require a license, that individual shall be licensed in

this Commonwealth.

(8) Accounts shall only be accepted in the name of an

individual and shall not be transferable. Only individuals

who have established accounts with a licensee may wager

through a licensee.

(9) Each account holder shall provide personal

information as the licensee and the commission require,

including all of the following:

(i) Name.

(ii) Principal residence address.

(iii) Telephone number.

(iv) Social Security number.

(v) Date of birth.

(vi) Other information necessary for account

administration.

(10) The information supplied by the account holder

shall be verified by the licensee using means acceptable to

the commission.

(11) The licensee shall provide each account holder a

secure personal identification code and password to be used

by the account holder to confirm the validity of every

account transaction.

20150SB0352PN0505 - 156 -

(12) An employee or agent of the licensee shall not

disclose any confidential information except the following:

(i) To the commission.

(ii) To the account holder as required by this

chapter.

(iii) To the licensee and its affiliates.

(iv) To the licensed racing entity as required by

the agreement between the licensee and the licensed

racing entity.

(v) As otherwise required by law.

(13) The licensee shall provide each account holder a

copy of account holder rules and the terms of agreement and

other information and materials that are pertinent to the

operation of the account.

(14) The licensee may refuse to establish an account if

it is found that any of the information supplied is false or

incomplete or for any other reason the licensee deems

sufficient.

(15) Each account shall be administered in accordance

with the account holder rules and the terms of agreement

provided to account holders, including:

(i) Placing of wagers.

(ii) Deposits to accounts.

(iii) Credits to accounts.

(iv) Debits to accounts.

(v) Refunds to accounts.

(vi) Withdrawals from accounts.

(vii) Minimum deposit requirements.

(viii) Fees per wager.

(ix) Rebates.

20150SB0352PN0505 - 157 -

(16) Each licensee shall have protocols in place and

shall publicize to its account holders when the wagers are

excluded from a host racetrack's wagering pool. These

protocols shall include an immediate electronic mail message

to affected account holders and immediate posting on the

licensee's publicly accessible Internet website.

(17) A licensee shall maintain complete records of the

application and the opening of an account for the life of the

account plus two additional years. A licensee shall also

maintain complete records of the closing of an account for

two years after closing. These records shall be provided to

the commission upon request.

(18) A licensee shall maintain complete records of all

transactions, including deposits, credits, debits, refunds,

withdrawals, fees, wagers, rebates and earnings for two

years. These records shall be provided to the commission upon

request.

(19) All wagering conversations, transactions or other

wagering communications, verbal or electronic, shall be

recorded by means of the appropriate electronic media and the

tapes or other records of the communications shall be kept by

the licensee for a period of two years. These tapes and other

records shall be made available to the commission upon

request.

(20) The recording of the confirmation of the

transaction, as reflected in the voice or other data

recording, shall be deemed to be the actual wager regardless

of what was recorded by the totalisator.

(21) A licensee shall not accept wagers if its recording

system is not operable.

20150SB0352PN0505 - 158 -

(22) The commission may monitor the equipment and staff

and review the records of a licensee and any of the

transactions conducted by the licensee with regards to wagers

made by residents of this Commonwealth.

(23) A licensee may suspend or close any account for

violation of the account holder rules and the terms of

agreement or any other reason it deems sufficient, if the

licensee returns to the account holder all money then on

deposit within seven calendar days.

Section 208-B. Transfers of licenses.

A transfer of licenses shall be done in accordance with the

following:

(1) A license issued under this chapter shall not be

transferable or assignable.

(2) A substantial change in ownership in a licensee

shall result in termination of the license unless prior

written approval has been obtained from the commission. A

request for approval of a substantial change in ownership

shall be made on a form designated by the commission. Upon

receipt of all required information, the commission shall, as

soon as practicable, make a determination whether to

authorize and approve the substantial change in ownership.

(3) Notice of a nominal change in ownership shall be

filed with the commission within 15 days of the execution of

the documents upon which the proposed nominal change in

ownership will be based.

(4) For purposes of paragraph (3), notice is not

required for any of the following:

(i) A nominal change in ownership if the licensee is

a publicly traded corporation.

20150SB0352PN0505 - 159 -

(ii) The transfer of an ownership interest in a

licensed racing entity, whether substantial or nominal,

direct or indirect, if by a publicly traded corporation,

and if the beneficial ownership transferred is acquired

by an individual who holds the voting securities of the

publicly traded corporation for investment purposes only.

(iii) A debt transaction of a publicly traded

corporation, unless the transaction results in the pledge

or encumbrance of the assets or any portion of the assets

of the licensed racing entity.

(5) Any attempt to effect a substantial change in

ownership under this section if not done so in writing shall

be considered void by the commission.

Section 209-B. Duration of license.

A license issued under this chapter shall be valid for the

three calendar years ONE CALENDAR YEAR for which the license is

issued.

Section 210-B. Penalties and enforcement.

All of the following apply:

(1) The commission shall have all of the rights, powers

and remedies necessary to carryout this chapter and to ensure

compliance with this chapter, including revocation,

suspension or modification of a license and the imposition of

fines.

(2) With respect to an individual or entity that offers

advanced deposit account wagering to residents of this

Commonwealth without a license issued by the commission, the

commission may take the measures deemed necessary, including

referral to the appropriate regulatory and law enforcement

authorities for civil action or criminal penalties.

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Section 4. Section 301 of the act is amended to read:

Section 301. Mandatory requirements for medication rules.

(a) [The commissions shall have in effect at all times when]

When a licensed [corporation] racing entity conducts a horse

[racing] race meeting with pari-mutuel wagering the commission

shall have in effect rules or regulations to control the use and

administration of any medication and the use and administration

of any device that affects the performance of a race horse. The

[commissions may establish permitted tolerance levels and

therapeutic dose allowances for all medication to be used or

administered to a race horse.] commission shall adopt a

comprehensive schedule of equine drugs, medications, therapeutic

substances or metabolic derivatives which are authorized to be

administered to race horses, including tolerance levels and

therapeutic dose allowances. The commission shall consult with

the Pennsylvania Board of Veterinary Medicine, academic

institutes, associations representing the majority of the horse

owners and experts as necessary to develop the approved

schedule. THE ADOPTION AND AMENDMENT OF MEDICATION RULES

ESTABLISHED UNDER THIS SECTION SHALL TAKE EFFECT NO LATER THAN

30 DAYS AFTER NOTIFICATION HAS BEEN MADE TO THE ASSOCIATIONS

REPRESENTING THE MAJORITY OF THE HORSE OWNERS.

(b) The [commissions] commission shall establish in their

rules or regulations penalty provisions for the violation of

these rules or regulations.

Section 5. Section 302(a) and (c) of the act, amended May

16, 1986 (P.L.205, No.63), are amended to read:

Section 302. Establishment of the Pennsylvania Race Horse

Testing Program.

(a) There is hereby established the Pennsylvania Race Horse

20150SB0352PN0505 - 161 -

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Testing Program. The program shall be administered by [a

management committee composed of the two chairpersons of the

commissions, the Secretary of Agriculture and two persons

appointed by the Governor. One person appointed by the Governor

must be a doctor of veterinary medicine or a veterinary medical

doctor and a member of the faculty of a school of veterinary

medicine located within this Commonwealth and the other person

must be employed within the private sector and have a background

in biological and/or chemical laboratory management. The program

is placed in and made a part of the Department of Agriculture]

the commission in consultation with the associations

representing the majority of the horse owners. All costs of the

program shall be paid by the [commissions] appropriations

allocated under section 304. [Subject to all provisions of the

act of April 9, 1929 (P.L.177, No.175), known as "The

Administrative Code of 1929," that apply to the department, the

management committee shall appoint and direct all personnel as

necessary, establish a facility or contract for the provision of

testing services, acquire all necessary equipment and supplies

and adopt all necessary procedures.]

* * *

[(c) In order to evaluate the effectiveness of testing

services performed by personnel of the Department of Agriculture

and determine whether the manner in which these services are

provided, the tests utilized and tolerance levels permitted

should be modified, the commissions shall equally fund a

contracted evaluation of existing laboratory services to be

conducted by a nongovernmental entity with documented expertise

to accurately evaluate existing laboratory services and

formulate recommendations for improvement of the testing

20150SB0352PN0505 - 162 -

program. Upon review of the evaluation results, the department

may implement in consultation with the management committee a

program to improve laboratory services, including, if necessary

and appropriate, the selection of a contractor or contractors to

provide testing services. This study shall be completed on or

before January 1, 1987, and copies provided to the Governor, the

President pro tempore of the Senate, the Speaker of the House of

Representatives and the members of the State Government

Committees of the Senate and the House of Representatives within

15 working days.]

Section 6. Section 304 of the act is amended to read:

Section 304. Costs of the enforcement of the medication rules

or regulations.

[All costs for the collection and testing samples for any

manner of medication shall be paid by the commissions.]

Annually, the commission shall issue a cost statement for the

actual cost of the collection and testing for medication. The

cost statement shall include the cost of equipment, supplies and

facilities, except holding barns or stables, to be located at

horse race meeting facilities, grounds or enclosures or at other

locations designated by the commission. The cost statement shall

be published in the Pennsylvania Bulletin. Notwithstanding any

other provisions of law to the contrary, the Department of

Revenue shall transfer to the commission from the Pennsylvania

Race Horse Development Fund on a weekly basis an amount equal to

the costs associated with testing under this section for the

prior week. Transfers made by the Department of Revenue pursuant

to this section shall be made prior to any distribution from the

Pennsylvania Race Horse Development Fund pursuant to section

1723-A.1 of the act of April 9, 1929 (P.L.343, No.176), known

20150SB0352PN0505 - 163 -

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asAthe Fiscal Code. EACH YEAR, THE GENERAL ASSEMBLY SHALL

AUTHORIZE THE TRANSFER OF FUNDS FROM THE PENNSYLVANIA RACE HORSE

DEVELOPMENT FUND TO THE STATE RACING FUND TO PROVIDE FOR THE

ACTUAL COST OF COLLECTION AND TESTING FOR MEDICATION, WHICH

SHALL INCLUDE THE COST OF NECESSARY PERSONNEL, EQUIPMENT,

SUPPLIES AND FACILITIES, EXCEPT HOLDING BARNS OR STABLES TO BE

LOCATED AT HORSE RACE FACILITIES, GROUNDS OR ENCLOSURES OR AT

OTHER LOCATIONS DESIGNATED BY THE COMMISSION. THE TRANSFER SHALL

BE MADE IN MONTHLY INSTALLMENTS DURING THE FISCAL YEAR BEFORE

ANY OTHER DISTRIBUTION FROM THE PENNSYLVANIA RACE HORSE

DEVELOPMENT FUND. Transfers made under this section shall not

exceed 5% of the total funds available in the Pennsylvania Race

Horse Development Fund.

Section 7. Notwithstanding any other law and no later than

180 days after the effective date of this section, the State

Horse Racing Commission and the State Harness Racing Commission

shall cease to exist and the powers and duties of the State

Horse Racing Commission and the State Harness Racing Commission

shall be transferred to the State Horse Racing Commission

established under this act. Prior to the transfer of the powers

and duties of the State Horse Racing Commission and the State

Harness Racing Commission to the State Horse Racing Commission,

the following shall apply:

(1) The following individuals shall be transferred to

and shall become employees of the State Horse Racing

Commission and their status as an employee of the Department

of Agriculture shall cease:

(i) An individual who is employed by the Department

of Agriculture and assigned to the State Horse Racing

Commission or the State Harness Racing Commission.

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(ii) An individual who is employed by the Department

of Agriculture and whose duties substantially involve

licensing or enforcement, the development of laws or the

development or adoption of regulations or policy related

to horse racing under the act or who have other

discretionary authority which may affect the outcome of

an action, proceeding or decision under the act.

(2) Paragraph (1) shall not apply to any individual

assigned as legal counsel to a commission by the Office of

General Counsel or to human relations staff and

administrative staff of the Department of Agriculture not

permanently assigned to a commission but who provide support

to the commissions as requested.

(3) An individual transferred under paragraph (1) shall

remain a State employee for purposes of 71 Pa.C.S. Pt. XXV

and the individual's service shall be considered continual

and uninterrupted.

(4) Subject to the provisions of paragraph (10), on and

after the date of transfer to the State Horse Racing

Commission, a transferred employee shall be eligible for paid

holidays and the accrual of sick and annual leave and any

other leave in accordance with the policies of the

commission.

(5) Sick and annual leave accrued by a transferred

employee prior to the date of transfer shall be transferred

based upon the accrued sick and annual leave balances

credited to the transferred employee by the Department of

Agriculture as of the day immediately preceding the

transferred employee's date of transfer.

(6) The Department of Agriculture shall provide payment

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to the State Horse Racing Commission for the accrued sick and

annual leave time transferred under paragraph (5). Within 30

days of the transfer of employees, the Department of

Agriculture shall provide in writing to the State Horse

Racing Commission all leave information requested by the

commission for employees transferred under paragraph (1).

(7) Subject to the provisions of paragraph (10), accrued

sick or annual leave which exceeds the maximum allowed by the

policies of the State Horse Racing Commission in effect on

the day immediately preceding the date of transfer and any

other leave may not be transferred and credited. The

Department of Agriculture shall provide a lump sum payment to

an individual transferred under paragraph (1) for sick or

annual leave and any other leave which is not transferred and

credited under this paragraph.

(8) Transferred employees and their dependents shall

continue to be eligible to:

(i) Receive medical plan benefits, supplemental

benefits and other benefits as determined by the trustees

of the Pennsylvania Employees Benefits Trust Fund.

(ii) Elect coverage upon retirement under the

Retired Employees Health Program.

(9) The Department of Agriculture shall be obligated and

required to provide a lump sum payment to the State Horse

Racing Commission to underwrite or offset the cost of accrued

Retired Employees Health Program and pension benefits.

(10) All collective bargaining agreements and memoranda

of understanding, including any side letters attendant to a

collective bargaining agreement and memoranda of

understanding, between the Commonwealth and an employee

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organization covering employees transferred under paragraph

(1) shall remain in force and effect and binding upon the

State Horse Racing Commission. An employee transferred under

paragraph (1) who is covered by a collective bargaining

agreement or memorandum of understanding shall not be subject

to a reduction in salary, benefits or status derived from the

collective bargaining agreement or memorandum of

understanding as a result of the transfer.

(11) The Department of Agriculture shall submit a report

to the chairman and minority chairman of the Appropriations

Committee of the Senate and the chairman and minority

chairman of the Appropriations Committee of the House of

Representatives containing the expenditures for compensation

and related expenditures for individuals who are transferred

under this section.

SECTION 7. THE DEPARTMENT OF AGRICULTURE'S PROVISION OF ANY

SHARED ADMINISTRATIVE SERVICES, SHARED STAFF AND SHARED

FACILITIES TO THE COMMISSION SHALL BE REIMBURSED FROM THE STATE

RACING FUND AND SHALL BE LIMITED TO ACTUAL COSTS OF PROVIDING

THE SERVICES, STAFF AND FACILITIES, INCLUDING SALARIES, BENEFITS

AND EXPENSES OF EMPLOYEES PROVIDING THE SHARED ADMINISTRATIVE

SERVICES. THE DEPARTMENT OF AGRICULTURE SHALL RETAIN RECORDS

REGARDING ANY ADMINISTRATIVE SHARED SERVICE PROVIDED TO THE

COMMISSION BY A DEPARTMENTAL EMPLOYEE.

Section 8. This act shall take effect as follows:

(1) The following provisions shall take effect

immediately:

(i) Section 201-A of the act.

(ii) This section.

(2) The remainder of this act shall take effect in 180

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90 days.

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