AN ACT

 

1Amending the act of December 17, 1981 (P.L.435, No.135),
2entitled "An act providing for the regulation of pari-mutuel
3thoroughbred horse racing and harness horse racing
4activities; imposing certain taxes and providing for the
5disposition of funds from pari-mutuel tickets," further
6providing for definitions; repealing provisions related to
7the State Horse Racing Commission and State Harness Racing
8Commission; and providing for racing oversight.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. The definitions of "commissions,"
12"commissioners," "licensed corporations," "nonprimary location
13statement" and "racetrack enclosure" in section 102 of the act
14of December 17, 1981 (P.L.435, No.135), known as the Race Horse
15Industry Reform Act, amended or added May 16, 1986 (P.L.205,
16No.63) and November 30, 1988 (P.L.1090, No.127), are amended and
17the section is amended by adding definitions to read:

18Section 102. Definitions.

19The following words and phrases when used in this act shall
20have, unless the context clearly indicates otherwise, the

1meanings given to them in this section:

2"Advanced deposit wagering." A system whereby wagers are
3debited and payouts are credited to an advanced deposit account
4held by a racing association or other entity licensed by the
5board on behalf of a person.

6* * *

7"Board." The Pennsylvania Gaming Control Board.

8"Bureau." The Bureau of Horse Racing.

9* * *

10["Commissions." The State Horse Racing Commission and the
11State Harness Racing Commission.

12"Commissioners." The persons appointed by the Governor and
13confirmed by the Senate who serve on the State Horse Racing
14Commission or the State Harness Racing Commission and who
15administer the applicable provisions of this act.]

16* * *

17"Harness horse racing." The form of standardbred horse
18racing in which the horses participating are attached "in
19harnesses" to a sulky or other similar vehicle, at a specific
20gait, either a trot or pace, and that is being driven by a
21person.

22"Horse racing." Harness horse racing and thoroughbred horse
23racing.

24"Internet wagering." A legal wager placed or accepted in a
25state with respect to the outcome of a horse race taking place
26in the state or in another state, where lawful in each state
27involved, placed or transmitted by an individual in one state
28via telephone or other electronic media, including the Internet,
29and accepted by an off-track betting system in the state or in
30another state, as well as the combination of any pari-mutuel

1wagering pools.

2* * *

3"Licensed corporations." The corporations that have obtained
4a license from [either] the former State Horse Racing Commission
5[or the], the former State Harness Racing Commission or the 
6board to conduct [thoroughbred or harness] horse race meetings
7[respectively] with pari-mutuel wagering.

8* * *

9"Nonprimary location statement." The written statement
10pursuant to this act submitted to the [appropriate commission]
11board by a licensed corporation planning to establish a
12nonprimary location.

13* * *

14"Racetrack enclosure." For purposes of this act, the term
15"racetrack enclosure," with respect to each licensed
16corporation, shall be deemed to include at least one primary
17racetrack location at which horse [race] racing meetings
18authorized to be held by the licensed corporation are conducted,
19and all primary, nonprimary, contiguous and noncontiguous
20locations of the licensed corporation which are specifically
21approved by the [appropriate commission] board for conducting
22the pari-mutuel system of wagering on the results of horse races
23held at such meetings or [race] racing meetings conducted by
24another licensed corporation or televised to such locations by
25simulcasting.

26* * *

27"Thoroughbred horse racing." The form of horse racing in
28which each participating horse is mounted by a jockey, is duly
29registered with The Jockey Club of New York and engages in races
30on the flat, which may include a steeplechase or hurdle race.

1"Totalisator." A computer system used to pool wagers, record 
2sales, calculate payoffs and display wagering data on a display 
3device that is located at a pari-mutuel facility or non-primary 
4location.

5Section 2. Chapter 2 of the act is repealed:

6[CHAPTER 2

7STATE HORSE RACING COMMISSION AND STATE HARNESS

8RACING COMMISSION

9Section 201. Establishment of the commissions.

10(a) The State Horse Racing Commission is hereby established
11as a departmental administrative commission within the
12Department of Agriculture. The commission shall have general
13jurisdiction over all pari-mutuel thoroughbred horse racing
14activities in the Commonwealth and the corporations engaged
15therein. For the purposes of this act, "thoroughbred horse
16racing" means that form of horse racing in which each
17participating horse is mounted by a jockey, is duly registered
18with the Jockey Club, New York, New York and engages in races on
19the flat. Thoroughbred horse racing may include a steeplechase
20or hurdle race. The commission shall consist of three members
21who shall be appointed by the Governor, by and with the advice
22and consent of the Senate. Each commissioner shall hold office
23for a term of three years and until a successor is qualified.

24(b) The State Harness Racing Commission is hereby
25established as a departmental administrative commission within
26the Department of Agriculture. The commission shall have general
27jurisdiction over all pari-mutuel harness racing activities in
28the Commonwealth and the corporations engaged therein. The
29commission shall consist of three members who shall be appointed
30by the Governor, by and with the advice and consent of the

1Senate. Each commissioner shall hold office for a term of three
2years and until a successor is qualified.

3(c) The commissioners shall be reimbursed for documented
4expenses incurred in the performance of their official duties.
5The commissioners shall be paid $150 per diem for performing
6their duties as directed by the Secretary of Agriculture. One of
7the commissioners for each commission shall be appointed by the
8Governor as chairperson. The commissioner appointed by the
9Governor as chairperson shall serve in that position at the
10pleasure of the Governor. The Secretary of Agriculture or his
11designee shall be a nonvoting ex officio member of the
12commissions. The commissions shall meet at least once a month
13and at other times as the Secretary of Agriculture or the
14commission chairperson deems necessary. Adequate public notice
15of the time and place of the meetings shall be given. A
16commissioner who fails to attend three consecutive meetings
17shall be subject to removal. A commissioner shall be excused
18from meetings due to illness or death of an immediate family
19member. All commissioners shall be licensed under the provisions
20of section 213.

21(d) Each commission shall engage an executive secretary,
22deputies, secretaries, officers and representatives as it may
23deem necessary, who shall serve during its pleasure. The
24commissions shall also engage other employees as they see fit
25and whose duties shall be prescribed by the commissions and
26whose compensation shall be fixed by the commissions within the
27appropriations available. Legal counsel for the commissions
28shall be appointed in accordance with the act of October 15,
291980 (P.L.950, No.164), known as the "Commonwealth Attorneys
30Act." Each commission shall be subject to the provisions of the

1act of April 9, 1929 (P.L.177, No.175), known as "The
2Administrative Code of 1929," as to classification and
3compensation for all its employees.

4(e) It shall be the duty of the executive secretary to keep
5a full and faithful record of the proceedings of the
6commissions, preserve at the general office of the commissions
7all books, maps, documents and papers entrusted to the executive
8secretary's care, prepare for service the papers and notices as
9may be required by the commissions and perform other duties as
10the commissions may prescribe. It shall be the duty of the
11executive secretary to keep, at the offices of the commissions,
12a docket setting forth the names of all stockholders in all
13corporations licensed under this act, the number of shares held
14by each stockholder and the date on which each shareholder
15acquired stock in the licensed corporation. The docket shall be
16open for public inspection. It shall be the duty of the
17executive secretary to appear before the Appropriations
18Committees of the Senate and the House of Representatives for
19budgetary review and recommendations.

20(f) The commissions or designated officers, employees or
21agents of the commissions shall have the power to administer
22oaths and examine witnesses and may issue subpoenas to compel
23attendance of witnesses and production of all relevant and
24material reports, books, papers, documents, correspondence and
25other evidence. The commissions shall, annually, make a full
26report to the Secretary of Agriculture of their proceedings for
27the preceding calendar year and suggestions and recommendations
28as they see fit. The commissions shall exercise their powers and
29duties in accordance with the provisions of "The Administrative
30Code of 1929."

1(g) The terms and termination dates of the terms of the
2three commissioners who constitute the State Horse Racing
3Commission under the act of December 11, 1967 (P.L.707, No.331),
4referred to as the Pennsylvania Thoroughbred Horse Racing Law,
5shall continue under this act. Any commissioner whose term has
6already expired on the effective date of this act and who has
7not been replaced by a new member or has not been confirmed for
8another term, shall continue in his or her present status until
9replaced by a new member or confirmed for another term.

10(h) The terms and termination dates of the terms of the
11three commissioners who constitute the State Harness Racing
12Commission under the act of December 22, 1959 (P.L.1978,
13No.728), referred to as the Pennsylvania Harness Racing Law,
14shall continue under this act. Any commissioner whose term has
15already expired on the effective date of this section and who
16has not been replaced by a new member or has not been confirmed
17for another term, shall continue in his or her present status
18until replaced by a new member or confirmed for another term.

19(i) All rules and regulations promulgated under the
20provisions of the Pennsylvania Thoroughbred Horse Racing Law and
21the Pennsylvania Harness Racing Law shall remain in effect
22except to the extent that they are in direct conflict with the
23provisions of this act. The commissions may amend, revise or
24alter these rules and regulations as they deem necessary.

25(j) All licenses issued under the provisions of section 11
26of the Pennsylvania Thoroughbred Horse Racing Law and under the
27provisions of section 9 of the Pennsylvania Harness Racing Law,
28shall remain in effect for the remainder of the term for which
29these licenses were issued. After these licenses have expired,
30all renewals or new licenses shall be issued under the

1provisions of this act.

2(k) All licenses issued to corporations under the provisions
3of section 7 of the Pennsylvania Thoroughbred Horse Racing Law
4and under the provisions of section 7 of the Pennsylvania
5Harness Racing Law, shall continue with the same force and
6effect and shall be governed by the provisions of section 209.

7Section 202. General powers of the commissions.

8(a) The State Horse Racing Commission shall have the power
9to supervise all thoroughbred horse race meetings at which pari-
10mutuel wagering is conducted. The State Harness Racing
11Commission shall have the power to supervise all harness horse
12racing meetings at which pari-mutuel wagering is conducted. The
13commissions may adopt rules and regulations to effect the
14purposes and provisions of this act.

15(b) Without limiting the generality of the foregoing and in
16addition to its other powers:

17(1) Each commission shall have power to fix a minimum
18charge for admission to horse race meetings at which pari-
19mutuel wagering is conducted, but the minimum charge shall
20not be less than 50¢ for general admission, exclusive of
21taxes. The commissions shall have power to fix the charge for
22admission of soldiers, sailors and marines, in uniform, at
23one-half of the amount fixed for general admission, whether
24or not the one-half of the amount fixed is less than the
25minimum prescribed therein.

26(2) Each commission shall at all times have in effect
27rules and regulations as required under Chapter 3 regarding
28medication rules and enforcement provisions.

29(3) The rules of the commissions shall also provide that
30all winning pari-mutuel tickets must be presented for payment

1before April 1 of the year following the year of their
2purchase and failure to present the ticket within the
3prescribed period of time shall constitute a waiver of the
4right to participate in the award. After April 1 of the year
5following, all licensed corporations will forward to the
6State Treasurer through the Department of Revenue for credit
7to the State Racing Fund all funds so held for the uncashed
8tickets. Where it is shown to the satisfaction of the
9appropriate commission and the Department of Revenue, through
10substantiated and recorded data, that the reason for the
11pari-mutuel ticket or tickets being outstanding and unclaimed
12is loss, misplacement or theft within the confines and
13control of the pari-mutuel department of any licensed
14corporation and it is shown to the satisfaction of the
15appropriate commission and the Department of Revenue that the
16pari-mutuel ticket or tickets in question have been cashed by
17the pari-mutuel department, the Department of Revenue, with
18the approval of the appropriate commission, may adjust and
19credit the licensed corporation's outstanding ticket account
20accordingly on March 31 of the year following the year of
21purchase or after a complete audit of the outstanding tickets
22accounts have been performed. The licensed corporation shall
23reimburse any employee who has been held personally
24accountable and paid for the lost, misplaced or stolen
25tickets.

26(4) The commissions may adopt a general promotion
27program to assist the licensed corporations in increasing
28their attendance and average daily handle. Any expenditures
29for a promotional program shall be authorized and approved in
30the same manner as other operational costs of the

1commissions.

2(5) In the event that a state bordering Pennsylvania
3enacts a wagering tax scheme that may place Pennsylvania
4horse race meetings at a competitive disadvantage in the
5purses that can be offered for horse races, a licensed
6corporation may petition the appropriate commission for an
7emergency financial grant to augment its purse structure. If
8the appropriate commission finds that the effect of the
9enacted wagering tax scheme of a bordering state is to place
10Pennsylvania horse race meetings at a competitive
11disadvantage in purse structure, the appropriate commission
12shall make an emergency financial grant to the petitioning
13licensed corporation for augmentation to its purse structure
14out of moneys that the commission has budgeted for this
15purpose; provided, however, that the Secretary of Agriculture
16and the Secretary of the Office of Budget and Administration
17have also agreed to the grant.

18(c) The State Harness Racing Commission shall have
19jurisdiction over and shall promulgate regulations as necessary
20for the proper administration of all racing conducted by a
21county agricultural society or an independent agricultural
22society, as provided for under section 5(1)(iii) and (iv) of the
23act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania
24Agricultural Fair Act."

25Section 203.

26(c) No corporation shall have the right to conduct any horse
27race meet except on obtaining a license from the appropriate
28commission and at the location or locations designated in its
29license or any amendment thereto or as approved at any time by
30the commission as the place or places at which it was proposed

1to conduct its business. This restriction shall not apply to any
2corporation whose racing plant or usefulness, in the discretion
3of the appropriate commissions, shall, for any reason beyond the
4control of the corporation, be totally destroyed or so
5substantially interfered with as to render same unfit for
6continued operation. Pending the rebuilding or restoration of
7its usefulness, or the making of the required repairs to the
8plant or the part destroyed or damaged, the commissions may
9license such corporation to conduct its horse race meetings at
10any other suitable location.

11Section 204. Filing of information concerning stock transfers;
12necessity for commissions' approval.

13(a) Whenever a transfer of stock comprising an interest of
145% or more in any licensed corporation, or comprising an
15interest of 5% or more in any corporation which leases to a
16licensed corporation the track facility at which it conducts
17pari-mutuel horse races or comprising an interest of 5% or more
18in any corporation which owns 25% or more of the stock of the
19licensed corporation shall be made, there shall be filed,
20simultaneously, with the corporation which issued such stock the
21following:

22(1) In duplicate, an affidavit executed by the
23transferee of the interest stating that he is to be the sole
24beneficial owner thereof, and whether or not he:

25(i) has been convicted of a crime involving moral
26turpitude;

27(ii) has been engaged in bookmaking or other forms
28of illegal gambling;

29(iii) has been found guilty of any fraud or
30misrepresentation in connection with racing or breeding;

1(iv) has been guilty of any violation or attempt to
2violate any law, rule or regulation of any racing
3jurisdiction, for which suspension from racing might be
4imposed in such jurisdiction; or

5(v) has violated any rule, regulation or order of
6the commissions.

7If the transferee of the interest is not, or is not to be,
8the sole beneficial owner, there shall be annexed to the
9affidavit of the transferee, and expressly stated in such
10affidavit, a true and complete copy of all terms of the
11agreement pursuant to which the interest in the corporation
12is to be held by the transferee, including a detailed
13statement of the interest of each person who is to have any
14interest therein.

15(2) In duplicate, an affidavit executed by each person
16for whom the interest is to be held by the transferee,
17setting forth whether or not the affiant:

18(i) has been convicted of a crime involving moral
19turpitude;

20(ii) has engaged in bookmaking or other forms of
21illegal gambling;

22(iii) has been found guilty of any fraud or
23misrepresentation in connection with racing or breeding;

24(iv) has been guilty of any violation or attempt to
25violate any law, rule or regulation of any racing
26jurisdiction, for which suspension from racing might be
27imposed in such jurisdiction; or

28(v) has violated any rule, regulation or order of
29the commissions.

30To each of the affidavits shall be annexed, and expressly

1stated in such affidavit, a true and complete copy of all the
2terms of the agreement pursuant to which the interest is to
3be held by the transferee, including a detailed statement of
4the interest of each person who is to have any interest
5therein. The corporation shall file with the appropriate
6commission one of each duplicate affidavits.

7(b) If, after the filing of any affidavit required to be
8filed, there shall be any change in the status of any affiant
9with respect to any of the matters set forth in subsection (a)
10(1) of the affidavit filed, the affiant shall file with the
11corporation with which his affidavit was so filed a new
12affidavit, executed by him in duplicate, setting forth the
13change of status and the corporation shall file one of these
14affidavits with the appropriate commission.

15(c) Whenever any change shall be made in the amount, nature
16or of the interest of any person having an interest of 5% or
17more in any corporation, or any new interest of 5% or more shall
18be created therein, without a transfer as provided, the record
19owner of the stock, and each person whose interest has been
20attempted to be changed or created, shall file with the
21corporation which issued the stock, in duplicate, affidavits as
22provided by subsection (a)(1) and (2), except that these
23affidavits need not include the matter referred to in subsection
24(a) unless then required pursuant to subsection (b) and one copy
25thereof shall be filed by the corporation with the appropriate
26commission.

27(d) If the appropriate commission determines that it is
28inconsistent with the public interest, convenience, or
29necessity, or with the best interest of racing generally, that
30any person continue to be a stockholder of record, or the

1beneficial owner of any interest in stock standing in the name
2of another in any licensed corporation or of any corporation
3which leases to such licensed corporation the track at which it
4conducts pari-mutuel horse racing or which owned 25% or more of
5the stock of the licensee, the appropriate commission shall have
6full power and authority to order each stockholder or beneficial
7owner to dispose of his stock or interest within a period of
8time to be specified by the appropriate commission, which period
9the appropriate commission shall have full power to extend.

10(e) If the commissions shall make any order or direction as
11provided in subsection (d), the person aggrieved shall be given
12notice of the time and place of a hearing before the appropriate
13commission, at which time the appropriate commission will hear
14the person in reference thereto.

15Section 205. Number of horse racing corporations.

16(a) No more than six corporations shall be licensed by the
17State Horse Racing Commission to conduct a pari-mutuel meet or
18meets. No corporation licensed under this act to conduct harness
19racing with pari-mutuel wagering or under the act of December
2022, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
21Harness Racing Law, shall be licensed to conduct thoroughbred
22horse racing with pari-mutuel wagering.

23(b) No more than five corporations shall be licensed by the
24State Harness Racing Commission to conduct a pari-mutuel meet or
25meets. No corporation licensed under this act to conduct
26thoroughbred horse racing with pari-mutuel wagering or under the
27act of December 11, 1967 (P.L.707, No.331), referred to as the
28Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to
29conduct harness horse racing with pari-mutuel wagering.

30Section 206. Responsibilities of the Department of Revenue.

1The Department of Revenue is charged with the financial
2administration of pari-mutuel wagering under this act, as
3supplemented by the rules and regulations of the commissions.
4The Department of Revenue shall have authority to prescribe the
5forms and the system of accounting to be employed, and through
6its representatives shall, at all times, have power of access
7to, and examination of, any equipment relating to such wagering.

8Section 207. Allocation of racing days.

9(a) Up to 125 but no less than 25 racing days shall be
10allocated to each licensed corporation conducting thoroughbred
11horse race meetings in any calendar year; except, that upon
12request, the State Horse Racing Commission may grant up to an
13additional 25 racing days over the 125 days to a licensed
14corporation in each calendar year, if racing meet schedules can
15accommodate these extra days. Whenever two or more corporations
16licensed to conduct racing at the same facility apply to the
17State Horse Racing Commission for an allocation of racing days
18at the same facility, the commission shall allocate the racing
19days in the following manner:

20(1) If there is an agreement between the licensed
21corporations as to the allocation of racing days then as
22provided for therein.

23(2) If there is no agreement between the licensed
24corporations as to the allocation of racing days, then
25equally between them.

26(b) No more than 125 racing days shall be allocated to each
27licensed corporation conducting harness horse race meetings in
28any calendar year. Every corporation shall hold its license
29under the provisions of section 209. The State Harness Racing
30Commission shall allocate the racing days in accordance with the

1following guidelines:

2(1) A licensed corporation that has an ownership
3interest in the facility at which the racing days are to be
4conducted shall be granted up to 125 racing days in any
5calendar year upon request to the State Harness Racing
6Commission. The State Harness Racing Commission shall grant
7all racing days requested by licensed corporations described
8in this paragraph before any other racing days are granted to
9any other licensed corporation that desires to conduct a meet
10at the same facility owned in part or in whole by a licensed
11corporation that also desires to conduct a meet there.

12(2) Whenever one or more licensed corporations that have
13an ownership interest in the facility at which the racing
14days are to be conducted apply to the State Harness Racing
15Commission for an allocation of racing days, the State
16Harness Racing Commission shall allocate an equal number of
17racing days to each licensed corporation or to each licensed
18corporation based upon an agreement between the licensed
19corporations as to the allocation of racing days.

20(3) Upon request the State Harness Racing Commission may
21grant up to an additional 25 racing days over the 125 racing
22days to a licensed corporation in each calendar year, and the
23commission may grant up to 50 additional days of racing if
24that corporation is the only corporation operating at the
25facility, if racing meet schedules can accommodate these
26extra racing days.

27(4) For purposes of this section, an ownership interest
28shall mean that a licensed corporation directly or through a
29parent or subsidiary has at least 35% equity interest in the
30track facility at which it conducts harness horse race

1meetings or is the primary tenant at such facility. For
2purposes of this subsection, a primary tenant shall be that
3licensed corporation, if any, which is a tenant conducting
4horse race meetings at a track facility at which no licensed
5corporation conducting horse race meetings has directly or
6through a parent or subsidiary at least a 35% equity interest
7in such facility, and if there is more than one such tenant
8at any such facility during the year prior to the year for
9which dates are requested, then among or between such tenants
10the primary tenant, if any, shall be designated by agreement
11among or between those licensed corporations which propose to
12conduct horse race meetings at the said track facility during
13the year for which dates are requested.

14(c) The commissions shall certify to the Secretary of the
15Department of Revenue within 20 days after the allocation of
16racing days to licensed corporations the following information:

17(1) the names and addresses of the corporations;

18(2) the names and addresses of the presidents and
19general managers of the corporations;

20(3) the names and locations of the facilities where the
21racing days are to be conducted;

22(4) the number of racing days allocated to each
23corporation; and

24(5) a numbered list of each racing day assigned to each
25calendar day of the year for the purposes of taxation.

26(d) If a racing day is cancelled by a licensed corporation
27for reasons beyond its control, the appropriate commission shall
28grant the licensed corporation the right to conduct that racing
29day in the same or the next ensuing calendar year, if schedules
30permit. The racing day for purposes of taxation under section

1222 shall be at the lowest tax rate at which the licensed
2corporation conducted a racing day during that year.

3Section 208. State admissions taxes.

4(a) Every corporation holding a thoroughbred horse race
5meeting under this act shall collect, in addition to the
6admission price of tickets sold or otherwise disposed of, for
7each meeting held by the corporation, a tax equivalent to 15% of
8the admission price, or 15¢ whichever is greater. In case of
9failure to collect the tax, the tax shall be imposed upon the
10corporation holding the race meeting. The tax shall be paid to
11the Department of Revenue within ten days of collection. The
12amounts collected shall be paid into the State Treasury to the
13credit of the State Racing Fund. Before any corporation liable
14to pay the tax shall hold any race meeting, or exercise any of
15the powers conferred by this act, the corporation shall pay all
16taxes due, and shall file a statement with the Department of
17Revenue containing the name of the place and stating the time
18when the races are to be held. Nothing in this section shall
19apply to a race meeting conducted by any state, county or other
20agricultural association. Retroactive to September 1, 1981 and
21thereafter, the admission tax shall be decreased to a tax
22equivalent to 10% of the admission price. Then on September 1,
231982 and thereafter, the admission tax shall be decreased to a
24tax equivalent to 5% of the admission price.

25(b) Every corporation holding a harness horse race meeting
26shall collect, in addition to the admission price of tickets
27sold or otherwise disposed of, for each such meeting held by the
28corporation, a tax equivalent to 5% of the admission price. In
29case of failure to collect the tax, the tax shall be imposed
30upon the corporation holding the race meeting. The tax shall be

1paid to the Department of Revenue within ten days after the
2close of each race meeting. The amounts collected shall be paid
3into the State Treasury to the credit of the State Racing Fund.
4Before any corporation liable to pay the tax shall hold any race
5meeting, or exercise any of the powers conferred by this act,
6the corporation shall pay all taxes due and file a statement
7with the Department of Revenue containing the name of the place
8and stating the time when the races are to be held. Nothing in
9this section shall apply to a race meeting conducted by any
10state, county or other agricultural association.

11(c) The Department of Revenue shall have the power to
12examine the books and records of the corporation conducting any
13horse race meeting and may hear testimony and take proofs and
14material for its information, or from any other data which shall
15be satisfactory to it. The Department of Revenue may order and
16state an account for the tax due the State, together with the
17expense of such examination. A penalty of 5% and interest at the
18rate of 1% per month from the due date to the date of payment of
19the tax shall be payable in case any tax imposed by this section
20is not paid when due.

21Section 209. Licenses for horse race meetings.

22(a) Any corporation desiring to conduct horse race meetings
23at which pari-mutuel wagering shall be permitted may apply to
24the appropriate commission for a license. The license gives its
25holder the privilege to conduct horse race meetings at which
26pari-mutuel wagering is permitted. The license does not give its
27holder a property right. If, in the judgment of the appropriate
28commission, the public interest, convenience or necessity will
29be served and a proper case for the issuance of the license is
30shown, the appropriate commission may issue the license. The

1license shall remain in effect so long as the licensed
2corporation complies with all conditions, rules and regulations
3and provisions of this act. A commission may revoke or suspend
4the license of any corporation, if the commission finds by a
5preponderance of the evidence that the corporation, its
6officers, employees or agents, has not complied with the
7conditions, rules, regulations and provisions of this act and
8that it would be in the public interest, convenience or
9necessity to revoke or suspend the license. A license is not
10transferable.

11(b) Every license shall be issued upon the following
12conditions:

13(1) A horse race meeting at which pari-mutuel wagering
14is conducted is subject to the supervision of and to the
15reasonable rules and regulations prescribed by the
16appropriate commission.

17(2) Pari-mutuel wagering conducted is also subject to
18the supervision of and to the reasonable regulations
19prescribed by the Department of Revenue. Any license may also
20be issued upon any other condition that the appropriate
21commission determines to be necessary or desirable to insure
22that the public interest, convenience or necessity is served.

23(3) The corporation can prove by a preponderance of the
24evidence that it has obtained the use of a facility to
25conduct horse race meetings. The proof may be demonstrated by
26documentation of an ownership interest in the facility or by
27a written lease for use of the facility. For purposes of this
28paragraph, an ownership interest shall mean that a licensed
29corporation directly or through a parent or subsidiary has at
30least a 35% equity interest in the track facility at which it

1conducts horse race meetings or is the primary tenant at such
2facility. For purposes of this paragraph, a primary tenant
3shall be that licensed corporation, if any, which is a tenant
4conducting horse racing meetings at a track facility at which
5no licensed corporation conducting horse race meetings has
6directly or through a parent or subsidiary at least a 35%
7equity interest in such facility, and if there is more than
8one such tenant at any such facility during the year prior to
9the year for which dates are requested, then among or between
10such tenants the primary tenant, if any, shall be designated
11by agreement among or between those licensed corporations
12which propose to conduct horse race meetings at the said
13track facility during the year for which dates are requested.

14(4) The corporation posts, in favor of the appropriate
15commission, a bond or irrevocable letter of credit in an
16amount equal to the sum of the corporation's average weekly
17payment, during active racing, into the State Racing Fund, as
18determined by the appropriate commission on the basis of the
19immediately preceding year, during the year for which dates
20are requested.

21(5) The licensed corporation prints in its racing
22programs the procedure for filing a complaint with the
23appropriate commission.

24(c) Applications for licenses shall be in the form
25prescribed by the appropriate commission and shall contain
26information, material or evidence as the appropriate commission
27may require. The term "racing week" shall include Sunday at the
28discretion of the licensed corporation.

29(d) In considering an application for a license to a
30corporation, the commissions may give consideration to the

1number of licenses already granted. No license shall be granted
2to any track located within ten miles of a State, county or
3other political subdivision fair conducting horse racing unless
4the association, corporation, society, political subdivision or
5State agency conducting the fair shall affirmatively waive
6objection to the issuance of the license for dates within the
7period.

8(e) The commissions may refuse to grant, may revoke, or may
9suspend a license to a corporation, if it shall determine that:

10(1) Any officer, director, member or stockholder of the
11corporation applying for a license or of any corporation
12which owns stock in or shares in the profits, or participates
13in the management of the affairs of the applicant, or which
14leases to the applicant the track where it shall operate:

15(i) has been convicted of a crime involving moral
16turpitude;

17(ii) has engaged in bookmaking or other forms of
18illegal gambling;

19(iii) has been found guilty of any fraud or
20misrepresentation in connection with racing or breeding;

21(iv) has been guilty of any violation or attempt to
22violate any law, rule or regulation of any racing
23jurisdiction, for which suspension from racing might be
24imposed in such jurisdiction; or

25(v) has violated any rule, regulation or order of
26the commissions.

27(2) The experience, character or fitness of any officer,
28director or stockholder of any of the corporations is such
29that the participation of the person in horse racing or
30related activities would be inconsistent with the public

1interest, convenience or necessity or with the best interests
2of racing. If the commission determines that the interest of
3any stockholder referred to in this paragraph or in paragraph
4(1) is insufficient to affect adversely the conduct of pari-
5mutuel horse racing by the corporation in accordance with the
6provisions of this act, the commissions may disregard the
7interest in determining whether or not to grant a license to
8the corporation.

9(3) The applicant is not the owner or the lessee of the
10track at which it will conduct pari-mutuel horse racing under
11the license applied for, or that any person, firm,
12association or corporation other than the applicant shares,
13or will share, in the profits of the applicant, other than by
14dividends as a stockholder, or participates, or will
15participate in the management of the affairs of the
16applicant.

17(4) The corporation does not have the use of a facility
18to conduct horse race meetings. Such use must be proved by a
19preponderance of the evidence. The proof may be demonstrated
20by documentation of an ownership interest in the facility or
21by a written lease for use of the facility.

22(5) A licensed corporation does not have proof of a
23written lease of a facility to conduct horse race meetings.
24Under this paragraph, the appropriate commission may suspend
25a license for a period of two years. After the expiration of
26the suspension, the appropriate commission may then revoke
27the license, if the licensed corporation has failed to
28contract for a facility at which to conduct horse race
29meetings.

30(6) A licensed corporation has commingled horsemen's

1funds in violation of section 235(c) or has refused to place
2on deposit a letter of credit under section 236.

3(f) The commissions shall also have power to refuse to
4grant, revoke or suspend a license:

5(1) To any corporation, the charter or certificate of
6incorporation of which shall fail to contain a provision
7requiring any stockholder, upon written demand of the
8corporation, to sell his stock to the corporation at a price
9to be fixed by the appropriate commission, provided the
10demand be made pursuant to written direction of the
11appropriate commission and from the date of the making of the
12demand prohibiting the transfer of the certificate of stock
13except to the corporation.

14(2) To any corporation which, having been a licensee,
15has failed, in the opinion of the appropriate commission, to
16properly maintain its track and plant in good condition or
17has failed to make adequate provision for rehabilitation and
18capital improvements to its track and plant.

19(g) Pending final determination of any question under this
20section, the commissions may issue a temporary license upon such
21terms and conditions as they see fit to effectuate the
22provisions of this act.

23(h) The commissions shall have power to direct that every
24certificate of stock of a licensed corporation shall bear a
25legend, plainly and prominently imprinted upon the face of the
26certificate, reading: "This certificate of stock is transferable
27only subject to the provisions of the 'Race Horse Industry
28Reform Act'." The provisions of this subsection shall not apply
29to stock heretofore issued by a licensed corporation under the
30provisions of the act of December 11, 1967 (P.L.707, No.331), as

1amended, and referred to as the Pennsylvania Thoroughbred Horse
2Racing Law or of the act of December 22, 1959 (P.L.1978,
3No.728), as amended, and referred to as the Pennsylvania Harness
4Racing Law.

5Section 210. Shareholders.

6(a) Each licensed corporation shall, once a year, provide
7the appropriate commission with a complete list of all its
8shareholders, indicating the number of shares by each
9shareholder.

10(b) It shall be the duty of each licensed corporation within
11ten days after any transfer of stock comprising an interest of
125% or more in such licensee, to notify the appropriate
13commission of the transfer.

14(c) Each certificate of stock issued by a licensed
15corporation to a shareholder having a 5% or greater interest
16shall have noted on the face thereof that the person whose name
17is indicated as the owner of such shares of stock by the
18certificate is the sole and absolute owner, and that he is not
19holding such shares of stock or any portion of such shares of
20stock represented by the certificate in trust for any person,
21partnership, firm or corporation who or which is prohibited from
22owning such shares of stock. If any of such shares of stock
23represented by a certificate of stock are held subject to the
24terms of either an inter vivos or testamentary trust for the
25benefit of any person who could lawfully own such stock in his
26own name, the fact shall be noted on the face of the certificate
27and a copy of the instrument which created the trust shall be
28attached. A duplicate copy of the instrument which created the
29trust shall be filed with the appropriate commission.

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

1any licensed corporation which are held in trust contrary to the
2provisions of this section and the same shall be forfeited to
3the Commonwealth after reasonable notice and upon hearing and
4proof thereof in any suit instituted by the Attorney General of
5Pennsylvania. Upon it being established that the stock is
6subject to forfeiture by legal adjudication, the appropriate
7commission shall sell the forfeited stock at public sale, upon
8proper notice, to the highest bidder. The proceeds from the sale
9shall be deposited in the General Fund of the Commonwealth of
10Pennsylvania.

11(e) As used in this section, the term "licensed corporation"
12shall include any licensed corporation as defined in section 102
13and also any firm, association or corporation which owns or
14leases to any licensed association or corporation a race track
15at which pari-mutuel racing is conducted, or any firm,
16association or corporation which participates in the management
17of any such licensed corporation.

18Section 211. Prohibition of interest by public officers, public
19employees and party officers in pari-mutuel racing
20activities.

21(a) No public officer, public employee or party officer
22shall:

23(1) hold any license to conduct a pari-mutuel meet from
24the commissions;

25(2) own or hold, directly or indirectly, any proprietary
26interest, stock or obligation of any firm, association or
27corporation:

28(i) which is licensed by the commissions to conduct
29pari-mutuel racing;

30(ii) which is licensed to conduct its occupation,

1trade or business at race tracks at which pari-mutuel
2race meets are conducted;

3(iii) which owns or leases to any licensed
4association or corporation a race track at which pari-
5mutuel racing is conducted; or

6(iv) which participates in the management of any
7licensed corporation conducting pari-mutuel racing; and

8(3) hold any office or employment with any firm,
9association or corporation specified in paragraph (2); or

10(4) sell or be a member of a firm or own 10% or more of
11the stock of any corporation which sells any goods or
12services to any firm, association or corporation specified in
13paragraph (2).

14The provisions of paragraph (3) shall not apply to a public
15employee other than a police officer or paid employee of a
16police department, sheriff's office, district attorney's office
17or other law enforcement agency so long as such employment of
18employees of a political subdivision may be prohibited by
19ordinance, resolution or local law.

20(b) A knowing and willful violation of this section shall be
21cause for removal from public office, public employment or party
22office. In any such case, the public officer, public employee or
23party officer, violating this section, shall be removed from
24office by appropriate authority having the power of removal.

25(c) The following words and phrases when used in this act
26shall have, unless the context clearly indicates otherwise, the
27meanings given to them in this section:

28"Party officer." The following members or officers of any
29political party:

30(1) a member of a national committee;

1(2) a chairman, vice-chairman, secretary, treasurer or
2counsel of a State committee or member of the executive
3committee of a State committee;

4(3) a county chairman, vice-chairman, counsel, secretary
5or treasurer of a county committee; or

6(4) a city chairman, vice-chairman, counsel, secretary
7or treasurer of a city committee.

8"Public employee." Every person employed by the Commonwealth
9or any political subdivision thereof.

10"Public officer." Every person elected to any public office
11of the Commonwealth or any political subdivision thereof.

12(d) The commissions shall have the power to refuse to grant
13or to revoke or suspend a license of any firm, association or
14corporation which aids or knowingly permits or conspires to
15permit any public officer, public employee or party officer to
16acquire or retain any interest prohibited by this section.

17(e) The provisions of this section shall allow any person
18other than members, employees or appointees of the commissions
19to own and to be licensed to race a horse at any licensed race
20track.

21Section 212. Officials at horse race meetings.

22(a) At all thoroughbred horse race meetings licensed by the
23State Horse Racing Commission, qualified judges and starters
24shall be approved by the commission. These officials shall
25enforce the rules and regulations of the State Horse Racing
26Commission and shall render written reports of the activities
27and conduct of such race meetings to the State Horse Racing
28Commission. The compensation of these judges and starters shall
29be paid by the corporation conducting the race meeting.

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

1Harness Racing Commission, qualified judges and starters shall
2be approved by the commission. No person shall be approved as a
3judge or starter unless he is licensed by the United States
4Trotting Association as a duly qualified pari-mutuel race
5meeting official. The officials shall enforce the rules and
6regulations of the State Harness Racing Commission and shall
7render regular written reports of the activities and conduct of
8the race meetings to the State Harness Racing Commission. The
9compensation of the presiding judge and two associate judges at
10each race track shall be fixed and paid by the State Harness
11Racing Commission. The commission shall adopt a selection
12process to approve the appointment of these officials. The
13licensed corporations shall participate in this selection
14process for approval of these officials.

15Section 213. Licenses for commissioners, employees and
16participants at horse race meetings.

17(a) Each commission shall license trainers, jockeys,
18drivers, persons participating in thoroughbred and harness horse
19race meetings, horse owners and all other persons and vendors
20exercising their occupation or employed at thoroughbred and
21harness horse race meetings. The license gives its holder a
22privilege to engage in the specified activity, but the license
23does not give its holder a property right. Licenses are not
24transferable. Each commission shall fix the license fees to be
25paid by persons or corporations so licensed; provided, however,
26that such occupational license fees shall not exceed $100. All
27fees shall be paid to the commissions and by them paid into the
28State Treasury through the Department of Revenue and credited to
29the State Racing Fund. The application shall be in the form and
30contain the information as each commission may require.

1Applicants must have their fingerprints taken or have
2fingerprint records on file with the respective commission, the
3Federal Bureau of Investigation, the State Police or any other
4organization recognized by the respective commission as part of
5the background investigation. Each commission may exempt
6applicants from the fingerprint requirement for positions not
7related to the care or training of horses, racing, wagering,
8security or the management operations of the racing corporation
9or racetrack. All licenses shall be issued for three-year terms
10and shall be automatically renewed, upon payment of the required
11fee, unless subsection (f) applies. Each commission may
12establish a temporary license and fee valid for four months
13within a twelve-month period. No applicant, however, may receive
14more than one temporary license within 12 months of the issuance
15of his or her preceding temporary license. The commissions may
16also stagger the termination dates and renewal dates of the
17licenses, in order to process and issue the licenses in an
18orderly manner that provides for approximately one-third of the
19licenses to be renewed each year. The commissions shall fix the
20manner by which licenses are processed and issued by rule or
21regulation.

22(b) All commissioners and all employees, agents and
23representatives of the commissions shall be licensed under this
24act. There shall be no fee for this license. The commissions
25shall fix by rule or regulation the manner in which these
26licenses under this subsection shall be processed and issued.

27(c) If the commissions find that the experience, character
28and general fitness of the applicant are such that the
29participation of the person in horse race meets is consistent
30with the public interest, convenience and necessity, and with

1the best interests of racing generally in conformity with the
2purposes of this act, it may grant a license.

3(d) The commissions may refuse to issue a license under this
4section, if they shall find that the applicant:

5(1) Has been convicted of a crime involving moral
6turpitude.

7(2) Has engaged in bookmaking or other form of illegal
8gambling.

9(3) Has been found guilty of any fraud or
10misrepresentation in connection with racing or breeding.

11(4) Has been found guilty of any violation or attempt to
12violate any law, rule or regulation of racing in any
13jurisdiction, for which suspension from racing might be
14imposed in that jurisdiction.

15(5) Has violated any rule, regulation or order of the
16commissions.

17(d.1) The commissions shall refuse to issue a license under
18this section if they shall find that the applicant has been
19convicted of an offense relating to fixing races. This
20subsection shall not apply if the conviction is overturned on
21appeal under the laws of the jurisdiction of the original
22finding.

23(e) Each commission shall have the right to inspect all
24contracts between licensed corporations and vendors for goods
25and services. Each commission shall require by rule or
26regulation that vendors disclose to the appropriate commission
27all principal officers and a description of their interests in
28the vendors' business. Failure to properly disclose this
29information shall constitute grounds to deny, to revoke or to
30suspend any vendor's license issued under the provisions of this

1act.

2(f) The commissions may suspend, refuse to renew or revoke a
3license issued under this section, if it shall determine that:

4(1) The applicant or licensee:

5(i) has been convicted of a crime involving moral
6turpitude;

7(ii) has engaged in bookmaking or other form of
8illegal gambling;

9(iii) has been found guilty of any fraud in
10connection with racing or breeding;

11(iv) has been guilty of any violation or attempt to
12violate any law, rule or regulation of any racing
13jurisdiction for which suspension from racing might be
14imposed in that jurisdiction;

15(v) has violated any rule, regulation or order of
16the commissions; or

17(vi) has been convicted of a felony offense related
18to the use, possession or sale of drugs or alcohol.

19(2) That the experience, character or general fitness of
20any applicant or licensee is such that the participation of
21the person in horse racing or related activities would be
22inconsistent with the public interest, convenience or
23necessity or with the best interests of racing.

24(f.1) The commissions shall suspend, refuse to renew or
25revoke a license issued under this section if it shall determine
26that the applicant or licensee has been convicted of an offense
27related to fixing races unless the conviction has been
28overturned on appeal under the laws of the jurisdiction of the
29original finding.

30(g) Pending final determination of any question under this

1section, the commissions may issue a temporary license upon such
2terms and conditions as they may deem necessary or proper to
3effectuate the provisions of this act.

4(h) The commissions may suspend a license under subsection
5(f) pending a hearing on the matter. The hearing must take place
6within ten days of the suspension.

7(i) The commissions shall not grant licenses to citizens of
8states that do not grant licenses to citizens of this
9Commonwealth on the basis of in-state preference.

10Section 214. Power of commissions to impose fines and
11penalties.

12(a) In addition to their power to suspend or revoke licenses
13granted by them, the commissions are authorized and empowered to
14impose fines upon any corporation, association or person
15participating in any way in any horse race meet at which pari-
16mutuel wagering is conducted, other than as a patron and whether
17licensed by the commissions or not, for a violation of any
18provision of this act or the rules and regulations promulgated
19by the commissions, not exceeding $5,000 for each violation,
20which fines shall be paid into the State Treasury through the
21Department of Revenue and credited to the General Fund.
22Following exhaustion of any administrative remedies promulgated
23by the commissions for such purpose, the action of the
24commissions in imposing any monetary fine shall be subject to
25appeal to the Commonwealth Court and as approved by that court
26system, or if no court appeal is taken, then as imposed, may be
27collected in an action of assumpsit.

28(b) No officer or employee of a licensed corporation or
29their spouses, parents, fathers-in-law, mothers-in-law, sons,
30daughters, sons-in-law or daughters-in-law shall have any direct

1or indirect interest in a race horse that is participating in a
2race at a meet at which such person or heretofore-mentioned
3relative holds any interest in the licensed corporation
4conducting the meet and/or the track facility. An officer or
5employee of a licensed corporation or their spouses, parents,
6fathers-in-law, mothers-in-law, sons, daughters, sons-in-law or
7daughters-in-law may have an interest in a race horse and enter
8it at meets that are conducted by licensed corporations or at
9race tracks in which such a person or heretofore-mentioned
10relative holds no direct or indirect interest. Each commission
11shall impose a fine or penalty upon any person for violation of
12this subsection as provided for under subsection (a). For
13purposes of this subsection an interest shall not include:

14(1) any breeder's fund award as a result of a horse
15being a registered Pennsylvania-bred thoroughbred horse under
16the provisions of section 223; and

17(2) any interest in a licensed corporation or track
18facility that was held by a person, partnership, association
19or corporation on or before January 1, 1988.

20Section 215. Security personnel; powers and duties; penalty.

21(a) The commissions and any licensed corporations are
22authorized and empowered to employ persons as security
23personnel. These persons shall possess the powers and duties of
24a peace officer with respect to the enforcement of the criminal
25laws of the Commonwealth within the race meeting grounds or
26enclosure. The designated persons are also authorized to
27interrogate and eject from the race meeting grounds or enclosure
28any persons suspected of violating any rule or regulation
29promulgated by the commissions. The commissions may refuse
30admission to and eject from enclosure of the race track operated

1by any licensed corporation, any person whose presence there is,
2in the judgment of the commission, inconsistent with the orderly
3or proper conduct of a race meeting or whose presence or conduct
4is deemed detrimental to the best interest of horse racing. The
5action of the commissions in refusing any person admission, or
6ejecting him from, a race meeting ground or enclosure shall not
7be because of the race, creed, color, sex, national origin or
8religion of that person and shall be reviewable by the
9Commonwealth Court.

10(b) Except as provided for in subsections (c) and (d), any
11licensed corporation may refuse admission to and eject from the
12enclosure of the race track operated by any association any
13person except that no person shall be refused admission or be
14ejected because of the race, color, creed, sex, national origin
15or religion of that person.

16(c) A licensed corporation may refuse admission to and eject
17from the enclosure of the race track operated by the
18corporation, any person licensed by the commissions under
19section 213, employed at his occupation at the race track, whose
20presence there is deemed detrimental to the best interests of
21horse racing, citing the reasons for that determination. The
22action of the corporation in refusing the person admission to or
23ejecting him from a race meeting ground or enclosure shall have
24immediate effect. The person refused admission or ejected shall
25receive a hearing before the appropriate commission, if
26requested, pursuant to rules and regulations adopted for that
27purpose by the appropriate commission and a decision rendered
28following that hearing.

29(d) A licensed corporation may not refuse admission to or
30eject a law enforcement official while that official is actually

1engaged in the performance of official duties.

2(e) A person found within a race track enclosure after
3having been refused admission thereto or ejected therefrom
4shall, upon conviction thereof in a summary proceeding, be
5sentenced to pay a fine not exceeding $300 or undergo
6imprisonment for a term not exceeding 90 days, or both.

7Section 216. Interstate simulcastings of horse races.

8Each commission may, upon request by any licensed
9corporation, grant permission for electronically televised
10simulcasts of horse races to be operated by the licensed
11corporation at the race track enclosure where a horse race
12meeting is being conducted during, between, before or after
13posted races for that racing day. The posted races for that
14racing day shall include a minimum of eight live races, except,
15at thoroughbred tracks on the one day designated as Breeders'
16Cup Event Day, there shall be a minimum of five live races. The
17simulcasts shall be limited to horse races conducted at
18facilities outside this Commonwealth and televised to race track
19enclosures within this Commonwealth. The simulcasts shall also
20be limited to thoroughbred races designated as Grade I stakes,
21or the international equivalent thereto, with purses of at least
22$100,000; standard bred races with purses of at least $100,000;
23and other stakes races which have, in the opinion of the
24appropriate commission, significant value to the Pennsylvania
25racing industry. Cross simulcasting of the aforementioned races
26shall be permitted as long as the particular race is available
27to all race tracks in the Commonwealth which are operating live
28racing that day. All simulcasts of horse races from outside this
29Commonwealth shall also comply with the provisions of the
30Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001

1et seq. All forms of pari-mutuel wagering as described under
2section 221 shall be allowed on horse races to be televised by
3simulcasting. Each commission may promulgate rules or
4regulations to regulate the wagering and the operation of these
5horse races. All moneys wagered by patrons on these horse races
6shall be computed in the amount of money wagered each racing day
7for purposes of taxation under section 222.

8Section 216.1. Televised international and interstate
9simulcastings of horse races.

10(a) Each commission may, upon request by a licensed
11corporation, grant permission to maintain common pari-mutuel
12pools on international and interstate races transmitted to and
13from the racetrack enclosures within this Commonwealth, such
14licensed corporation to be designated as the "host licensee."
15The permission to act as host licensee for international and
16interstate simulcast races shall be limited to licensed
17corporations:

18(1) which have a live racing agreement with a horsemen's
19organization representing a majority of owners and trainers
20at the facility where the licensed corporation conducts
21racing dates;

22(2) which have scheduled 95% of the total number of
23horse or harness racing days scheduled in 1986 by it or its
24predecessor at the facility where the licensed corporation
25conducts racing dates; and

26(3) which, subject to actions or activities beyond the
27control of the licensee, conduct not less than eight live
28races per race date during each meet at the facility where
29the licensed corporation conducts racing dates, except for
30thoroughbred tracks on the day designated as Breeder's Cup

1Event Day, when the facility shall hold a minimum of five
2live races.

3A horsemen's organization representing a majority of owners and
4trainers at a racetrack may consent to waiving or modifying the
5provisions pertaining to the required number of racing days and
6races per day scheduled by a licensed corporation at that
7racetrack.

8(b) Cross simulcasting of the races described in subsection
9(a) shall be permitted if all amounts wagered on the races in
10this Commonwealth are included in common pari-mutuel pools. A
11host licensee seeking permission to cross simulcast must obtain
12approval from both the State Harness Racing Commission and the
13State Horse Racing Commission. All simulcasts of horse races
14shall also comply with the provisions of the Interstate Horse
15Racing Act of 1978 (92 Stat. 1811, 15 U.S.C. § 3001 et seq.).
16All forms of pari-mutuel wagering as described under section 221
17shall be allowed on horse races to be televised by simulcasting.
18Each commission may permit pari-mutuel pools in this
19Commonwealth to be combined with pari-mutuel pools created under
20the laws of another jurisdiction and may permit pari-mutuel
21pools created under the laws of another jurisdiction to be
22combined with pari-mutuel pools in this Commonwealth. Each
23commission may promulgate rules or regulations to regulate
24wagering on televised simulcasts.

25(c) All moneys wagered by patrons in this Commonwealth on
26these horse races shall be computed in the amount of money
27wagered each racing day for purposes of taxation under section
28222 and all thoroughbred races shall be considered a part of a
29thoroughbred horse race meeting and all harness races shall be
30considered a part of a harness horse race meeting for purposes

1of section 222(b)(5).

2Section 217. Refunds.

3(a) Money received by the commissions may, within one year
4from receipts thereof, be refunded, to the party for whose
5account the same were received, on proof satisfactory to the
6commissions that:

7(1) the moneys were in excess of the amount required by
8law;

9(2) the license for which application was made has been
10refused by the commission;

11(3) the moneys were received as a fine and the
12commission has, after review, reduced the amount of the fine;
13or

14(4) upon appeal, the court reduced or remitted the fine
15imposed and paid.

16(b) Refunds shall, upon approval by the commission and after
17approval by the Board of Finance and Revenue, be paid from any
18moneys in the State Racing Fund.

19Section 218. Place and manner of conducting pari-mutuel
20wagering.

21(a) Every licensed corporation shall provide during a horse
22race meeting a place or places within the race track enclosure
23at which the licensed corporation shall conduct the pari-mutuel
24system of wagering by its patrons on the results of horse races
25held at such meetings or televised to the race track enclosure
26by simulcasting. The licensed corporation shall erect a sign or
27board upon which shall be displayed the approximate straight
28odds on each horse in any race; the value of a winning mutuel
29ticket, straight, place or show on the first three horses in the
30race; the elapsed time of the race; the value of a winning daily

1double ticket, if a daily double be conducted, and any other
2information that the commissions may deem necessary for the
3guidance of the general public. The commissions may prescribe,
4by rule, the type and kind of equipment to be used for the
5display of the foregoing information.

6(b) Each commission may upon request by any licensed
7corporation grant permission to the licensed corporation to
8conduct a telephone account wagering system: Provided, however,
9That all telephone messages to place wagers must be to a place
10within the race track enclosure: And further provided, That all
11moneys used to place telephone wagers be on deposit in an amount
12sufficient to cover the wager at the race track where the
13account is opened. Each commission may promulgate rules or
14regulations to regulate telephone account wagering. All moneys
15wagered as a result of telephone account wagering shall be
16included in the amount wagered each racing day for purposes of
17taxation under section 222 and shall be included in the same
18pari-mutuel pools for each posted race. All telephone account
19wagering systems shall be solely operated by the licensed
20corporations.

21(c) A licensed corporation shall only accept and tabulate a
22wager by a direct telephone call from the holder of a telephone
23wagering account. No person shall directly or indirectly act as
24an intermediary, transmitter or agent in the placing of wagers
25for a holder of a telephone wagering account. No person shall in
26any manner place any wager by telephone to a facility in the
27race track enclosure on behalf of a holder of a telephone
28wagering account. Only the holder of a telephone wagering
29account shall place a telephone wager. Any person violating this
30subsection shall be guilty of a misdemeanor of the first degree.

1(d) A licensed corporation shall not accept a telephone
2wager from, nor establish a telephone betting account for, any
3person located in or residing in an area defined herein as the
4primary market area of a race track, other than the race track
5at which the licensed corporation is conducting a racing meet.
6Nothing herein shall prohibit the licensed corporation from
7accepting a telephone wager from, or establishing a telephone
8betting account for, any person located in or residing in the
9primary market area of the track at which the licensed
10corporation is conducting a meet and, if two tracks share
11primary market area as defined herein, both tracks shall have
12equal rights to the market in the shared area.

13(e) The primary market area of a race track, for purposes of
14this act, is defined as that land area included in a circle
15drawn with the race track as the center and a radius of 35 air
16miles.

17(f) The secondary market area of a racetrack, for purposes
18of this act, is defined as that land area included in a circle
19drawn with the racetrack as the center and a radius of 50 air
20miles, but not including the primary market area of the
21racetrack.

22(g) Notwithstanding any other provisions of this act to the
23contrary, upon approval by the appropriate commission, a
24licensed corporation may establish one or more nonprimary
25locations at which it shall conduct pari-mutuel wagering on all
26horse races conducted by such licensed corporation and may
27conduct pari-mutuel wagering on horse races conducted by another
28licensed corporation, which horse races may be televised to the
29locations, or on horse races simulcast to the locations pursuant
30to section 216, provided that:

1(1) No licensed corporation may establish nonprimary
2locations within the primary market area, as set forth in
3subsection (e), of any racetrack other than a racetrack at
4which the licensed corporation conducts race meetings.
5Establishment of a nonprimary location by a licensed
6corporation within the primary market area of a racetrack at
7which the licensed corporation conducts race meetings shall
8require approval of the commission regulating the activities
9of such licensed corporation.

10(2) Any licensed corporation may establish a nonprimary
11location within the secondary market area of a racetrack as
12set forth in subsection (f), provided that the nonprimary
13location is approved by both the State Harness Racing
14Commission and the State Horse Racing Commission.

15(3) Any licensed corporation may establish a nonprimary
16location in areas outside the primary and secondary market
17areas of any racetrack, provided that the location is
18approved by the commission which regulates the activities of
19the licensed corporation establishing the location.

20(4) Where a site is approved by the commission as a
21nonprimary location established by more than one licensed
22corporation, by agreement between the licensed corporations
23and with the approval of the appropriate commission, one
24licensed corporation may operate the pari-mutuel equipment
25for one or more of the licensed corporations at that
26location, but the location may still be considered a part of
27the racetrack enclosure of each of the licensed corporations
28approved to conduct pari-mutuel wagering at that location.

29(5) (i) Any licensed corporation, planning to establish
30a nonprimary location, shall submit to the appropriate

1commission a nonprimary location statement in a form
2prescribed by the appropriate commission which specifies,
3but is not limited to, the following:

4(A) The number of permanent and part-time jobs
5to be created at the proposed facility.

6(B) The population of the town or municipality,
7and surrounding area, where the proposed facility is
8to be located.

9(C) The proximity of the proposed facility to
10any other nonprimary location or licensed racetrack.

11(D) The type of seating to be provided,
12including areas in the proposed facility where
13patrons can handicap races.

14(E) The total seating capacity of the proposed
15facility.

16(F) The size and number of toilet facilities.

17(G) The availability of food and beverages,
18including the number of tables, chairs, kitchen
19facilities and concession stands.

20(H) The number of available parking spaces.

21(I) A description of the general demeanor of the
22facility, including lighting, decor and plans for the
23exterior of the facility.

24(J) The number of betting windows and stand-
25alone terminals to be provided.

26(K) A description of the heating and air
27conditioning units, the smoke removal equipment and
28other climate control devices.

29(L) The total square feet of the proposed
30facility.

1(ii) The General Assembly recognizes the economic
2importance of the horse racing industry in this
3Commonwealth; and further recognizes that the
4Pennsylvania horse racing industry is in a state of
5decline. Therefore, it is the intent of the General
6Assembly through this amendatory act to revitalize and
7secure the economic future of the horse racing industry
8and to encourage statewide economic development by
9assisting in the development of nonprimary locations. It
10is the further intent of the General Assembly through
11this amendatory act that in no case shall the appropriate
12commission approve a nonprimary location statement when
13the sole purpose of that statement is to provide wagering
14opportunities pursuant to this act; rather, the
15appropriate commission shall only approve a nonprimary
16location statement that plans for a public facility
17offering not only wagering opportunities, but other
18amenities, such as high class restaurants and quality
19handicapping facilities, so that all or part of the
20nonprimary facility will resemble the clubhouse
21facilities of a racetrack. It is the further intent of
22the General Assembly through this amendatory act to offer
23the potential for the creation of jobs, not only in the
24racing and wagering industry, but more particularly in
25other service jobs, such as parking attendants, waiters
26and waitresses, security guards, custodial workers and
27food service personnel.

28(iii) In determining whether the nonprimary location
29statement meets the legislative intent of this amendatory
30act, the appropriate commission shall consider factors

1which include, but are not limited to, the following:

2(A) The purposes and provisions of this
3amendatory act.

4(B) The public interest.

5(C) The integrity of live racing.

6(D) The impact on the local community.

7(E) The potential for job creation.

8(F) The quality of the physical facilities and
9all services to be provided therein.

10(iv) In considering whether the appropriate
11commission will grant, suspend or revoke approval of
12nonprimary locations, the provisions of section 209(f)(2)
13shall apply. In connection therewith, the commission
14shall annually conduct inspections of the primary
15facility.

16(v) The rights, duties and obligations of the
17appropriate commission, as set forth in this amendatory
18act, shall apply to nonprimary locations and any
19employees or vendors of the licensed corporation
20establishing the nonprimary location.

21(6) (i) In addition to the requirements of paragraph
22(10), any licensed corporation which is authorized to
23conduct racing at any primary racetrack location at which
24there has not been, in the previous calendar year, a
25minimum of 142 days of live racing shall not be eligible
26to establish nonprimary locations outside its primary
27market area and shall only be eligible to establish
28nonprimary locations within its primary market area
29according to the following schedule.

30Year

 

1 

2 

3 

4 

5 

6 

7 

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

81988

50

365

 

 

91989

69

365

Under 69

307

101990

88

365

Under 88

259

111991

107

365

Under 107

191

121992

126

365

Under 126

133

131993

142

365

Under 142

75

14(ii) Notwithstanding the chart contained in
15subparagraph (i), if any such licensed corporation
16schedules 69 or more racing days in calendar year 1989,
17it may, upon approval of the appropriate commission,
18establish nonprimary locations within its primary market
19area for that calendar year.

20(7) (i) The licensed corporation authorized to hold
21race meetings at a primary racetrack location at which
22more than one license is so authorized may be granted up
23to two nonprimary locations by the appropriate
24commission, up to a maximum of four per primary racetrack
25location. The licensed corporation authorized to hold
26race meetings at a primary racetrack location at which
27there is only one such licensed corporation so authorized
28may be granted up to three nonprimary locations.

29(ii) In addition to the nonprimary locations
30authorized by subparagraph (i), during each of the

1calendar years 1989 and 1990, the appropriate commission
2may approve no more than one additional nonprimary
3location per primary racetrack location, for one licensed
4corporation authorized to conduct racing at the primary
5racetrack location.

6(iii) The General Assembly may, at any time, stop
7the further approval of any nonprimary locations. The
8State Harness Racing Commission and the State Horse
9Racing Commission shall not have the authority to approve
10any greater number of nonprimary locations after December
1131, 1990, unless further authorized by the General
12Assembly.

13(iv) It shall be the duty of both the State Harness
14Racing Commission and the State Horse Racing Commission
15to annually report to the General Assembly on the effect
16of nonprimary locations on such factors as the local
17economy, the public interest and the integrity of live
18racing, and make suggestions and recommendations.

19(8) (i) Moneys wagered at all primary and nonprimary
20locations pursuant to this act shall be included in
21common pari-mutuel pools. All money wagered by patrons on
22these races shall be computed in the amount of money
23wagered each racing day for purposes of taxation under
24section 222. The licensed corporation conducting the race
25meeting and maintaining the pari-mutuel pools shall
26maintain accurate records of the amount wagered in each
27pool from every primary and nonprimary location.

28(ii) The retained moneys as provided for in section
29222(e) shall be calculated for each location where pari-
30mutuel wagering is being conducted. If wagering has taken

1place at a nonprimary location where the wagering is
2conducted by a licensed corporation other than the
3licensed corporation conducting the race meeting, the
4licensed corporation conducting the race meeting shall
5retain any moneys to which it is entitled by agreement
6between such licensed corporations and shall pay over the
7balance of the retained moneys to the licensed
8corporation conducting the wagering at the nonprimary
9location.

10(9) (i) A licensed corporation conducting a race
11meeting on which pari-mutuel wagering is conducted at one
12or more nonprimary locations shall distribute to the
13horsemen's organization representing a majority of owners
14and trainers at its racetrack, or in accordance with the
15practice of the parties, to be used for payment of purses
16at that racetrack, an amount equal to not less than 6% of
17the daily gross wagering handle on such races at a
18nonprimary location: Provided, however, That when the
19gross wagering handle on such races at any such
20nonprimary location on a given day is less than $30,000,
21the above-referenced percentage shall be not less than
223%, and when the gross wagering handle on such races at
23any such nonprimary location on a given day is between
24$30,000 and $75,000 inclusive, the above-referenced
25percentage shall be not less than 4.75%: And provided
26further, That whenever a nonprimary location is within
27the primary market area of a licensed corporation other
28than the licensed corporation conducting such races, the
29applicable percentage shall be distributed one-half to
30the horsemen's organization representing a majority of

1owners and trainers at the racetrack, or in accordance
2with the practice of the parties, where the race meeting
3is being conducted to be used for the payment of purses
4at that racetrack and one-half to such horsemen's
5organization, or in accordance with the practice of the
6parties, at the racetrack within the primary market area
7to be used for the payment of purses at that racetrack.
8Nothing in this subparagraph shall prevent a licensed
9corporation from agreeing to distribute amounts greater
10than the percentages set forth in this subparagraph.
11However, if no alternative agreement has been reached,
12the total percentage paid for purses under this
13subparagraph shall be in accordance with the minimum
14percentages set forth in this subparagraph.

15(ii) Notwithstanding subparagraph (i), or any other
16provision in this act to the contrary, a nonprimary
17location may be established within the primary market
18area of a racetrack by agreement between the licensed
19corporation and the horsemen's organization representing
20a majority of the owners and trainers at that racetrack
21specifying the total percentage of handle wagered at such
22nonprimary location to be distributed to that horsemen's
23organization, or in accordance with the practice of the
24parties, to be used for the payment of purses at that
25racetrack. If no such agreement is reached covering such
26locations, the total percentage to be paid for purses
27pursuant to this subparagraph shall be the same as that
28applied to on-track wagering at the racetrack located
29within the primary market area.

30(10) The provisions of section 234 relating to the

1required number of racing days apply to this subsection.
2However, a horsemen's organization representing a majority of
3owners and trainers at a racetrack may consent to waiving or
4modifying the provisions as pertaining to the required number
5of racing days scheduled by a licensed corporation at that
6racetrack.

7Section 219. Books and records of pari-mutuel wagering.

8Every corporation that conducts a horse race meeting at which
9pari-mutuel wagering is authorized, shall keep books and records
10so as to clearly show by separate record the total amount of
11money contributed to every pari-mutuel pool. The Department of
12Revenue or its authorized representative shall have access to
13all books and records for the purpose of examining the same and
14ascertaining whether the proper amount due to the State is being
15paid by the licensed corporation.

16Section 220. Filing of certain agreements with the commissions.

17Every corporation licensed to conduct horse race meetings at
18which pari-mutuel wagering is permitted shall promptly after
19entering any lease agreement concerning any concession, labor
20management relation, hiring of designated classes of officers,
21employees or contractors specified by the commissions or any
22such other contract or agreement as the commissions may
23prescribe, file with the appropriate commission a true and
24correct copy, or an accurate summary, if oral.

25Section 221. Retention percentages for pari-mutuel pools.

26(a) Every licensed corporation shall distribute the moneys
27in any pari-mutuel pool to the holders of winning tickets under
28the following requirements:

29(1) all tickets shall be presented for payment before
30the first day of April of the year following the year of

1their purchase; and

2(2) seventeen percent of the moneys plus the breakage
3from regular wagering pools shall be retained by the licensed
4corporations for further distribution under section 222; or

5(3) nineteen percent of the moneys plus the breakage
6from regular wagering pools from licensed corporations whose
7total deposits in all pari-mutuel pools averaged less than
8$300,000 per racing day for their previous meeting at the
9same facility; or

10(4) twenty percent of the moneys plus the breakage from
11the exacta, daily double, quinella and other wagering pools
12involving two horses each racing day shall be retained by the
13licensed corporations for further distribution under section
14222; or

15(5) at least 26% but no more than 35% of the moneys plus
16the breakage from the trifecta or other wagering pools
17involving more than two horses in one or more races each
18racing day shall be retained by the licensed corporations for
19further distribution under section 222; and

20(6) except as provided for in subsection (d.1) of
21section 222, every corporation may retain less than 17%, 19%
22or 20% of the moneys in the wagering pools under paragraphs
23(2), (3) and (4) or less than 26% of the moneys in the
24wagering pools under paragraph (5) upon approval from the
25appropriate commission; and

26(7) every corporation may retain more than 25% but no
27more than 35% of the moneys in the wagering pools under
28paragraph (5) upon approval from the appropriate commission;
29and

30(8) all moneys remaining in the wagering pools described

1under paragraphs (2), (3), (4), (5), (6) and (7) shall be
2distributed to the holders of winning tickets.

3(b) Breakage shall mean the odd cents of redistributions to
4be made on all contributions to pari-mutuel pools exceeding a
5sum equal to the next lowest multiple of ten.

6(c) The commissions shall establish by rule or regulation
7provisions for minus-pools relating to the retention
8requirements under this section.

9Section 222. Distribution of moneys retained from pari-mutuel
10pools; taxation.

11(a) There is hereby created the State Racing Fund. All
12licensed corporations that conduct harness race meetings shall
13pay a tax through the Department of Revenue for credit to the
14State Racing Fund. All licensed corporations that conduct
15thoroughbred horse race meetings shall pay a tax through the
16Department of Revenue for credit to the State Racing Fund. The
17tax imposed on all licensed corporations shall be a percentage
18tax on the amount wagered each racing day and be paid from the
19moneys retained under section 221.

20(a.1) At the close of each day of racing, all corporations
21licensed to conduct harness horse race meetings or thoroughbred
22horse race meetings which annually conduct at least 100 days of
23racing, or when two licensed corporations conduct their race
24meetings at the same facility and between them annually conduct
25at least 175 days of racing, will pay out of the moneys retained
26on that day under section 221, through the Department of Revenue
27for credit to the State Horse Racing Fund the following taxes
28for the time periods stated:

29(1) From January 1, 1984 through June 30, 1984 - 3.8%.

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

1(3) After June 30, 1986 - 1.5%, except as provided in
2subsection (a.4).

3(a.2) Corporations not annually conducting at least 100 days
4of racing, or 175 days of racing in conjunction with another
5licensee at the same facility as described above, will pay 2.5%
6from July 1, 1984 to June 30, 1986, and 2.0% thereafter. This
7subsection shall not apply if races are not conducted because of
8an act of God or because of a strike resulting from a labor
9dispute.

10(a.3) For purposes of this section, a racing day shall be
11considered conducted after the appropriate commission has
12certified the allocation of racing days to the Secretary of the
13Department of Revenue under the provisions of section 207(b)
14even if the racing day is subsequently cancelled by the licensed
15corporation for reasons beyond its control.

16(a.4) Any corporation which does not hold a license under
17section 209 on the effective date of this act and which is
18granted a license under this act shall be subject to payment out
19of moneys retained under section 221, through the Department of
20Revenue for credit to the State Horse Racing Fund, of the
21following tax for a period of four years from the issuance date
22of the license - 1.0%, at which time said licensee shall be
23subject to the lawful rate then in effect under subsection (a.1)
24(3).

25(a.5) In order to qualify for the 1.0% tax rate authorized
26under subsection (a.4), the newly licensed corporation may not
27include any officer, director or the immediate relative (spouse,
28children or parents) of any officer or director of any licensed
29racing corporation which conducted, at any time within the
30immediately preceding five years, any horse or harness race

1meetings at the racetrack enclosure for which the license is
2sought. Also, the newly licensed corporation may not include any
3shareholder (or their immediate relative) holding a 5% or
4greater interest who also held a 5% or greater interest in any
5corporation licensed at any time within the immediately
6preceding five years to conduct horse or harness race meetings
7at the racetrack enclosure for which the license is sought.

8(b) The commissions shall distribute moneys from the State
9Racing Fund, together with the interest earned thereon, in the
10following manner:

11(1) The salaries of employees of the commission employed
12by or for it under the provisions of this act and the act of
13April 9, 1929 (P.L.177, No.175), known as "The Administrative
14Code of 1929," net of any income earned or received by the
15commission.

16(2) The payment of the compensation of employees of the
17Department of Revenue when used in collecting taxes and
18penalties imposed by this act.

19(3) The expenses of the Secretary and the Department of
20Agriculture incurred in administering their duties under this
21act.

22(4) To pay all other expenses incurred by the commission
23in administering this act, net of any income earned or
24received by the commission.

25(5) From remaining moneys in the State Racing Fund:

26(i) An amount equivalent to one percent of the
27amount wagered each racing day at thoroughbred horse race
28meetings shall be paid by the Horse Racing Commission
29from the State Racing Fund through the Department of
30Revenue for credit to the Pennsylvania Breeding Fund.

1(ii) An amount equivalent to one and one-half
2percent of the amount wagered each racing day at harness
3horse race meetings shall be paid by the Harness Racing
4Commission from the State Racing Fund through the
5Department of Revenue for credit to the Pennsylvania Sire
6Stakes Fund, beginning on July 1, 1983.

7(6) All remaining moneys in the State Racing Fund shall
8be paid into the General Fund.

9(c) All breakage retained under section 221 by licensed
10corporations that conduct thoroughbred horse race meetings shall
11be distributed in the following manner:

12(1) Fifty percent of the breakage shall be retained by
13the licensed corporations.

14(2) Twenty-five percent of the breakage shall be
15retained by the licensed corporations to be used solely for
16purses to the horsemen.

17(3) Twenty-five percent of the breakage shall be paid to
18the Department of Revenue for credit to the State Horse
19Racing Fund.

20(d) All breakage retained under section 221 by licensed
21corporations that conduct harness horse race meetings shall be
22distributed in the following manner:

23(1) Fifty percent of the breakage shall be retained by
24the licensed corporations.

25(2) The remaining 50% of the breakage shall be retained
26by the licensed corporations of which one-half of this
27breakage shall be used solely by the licensed corporations
28for claiming and nonclaiming races where entry is restricted
29to Pennsylvania-sired horses in the following manner:

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

1of the horses programmed to start shall be Pennsylvania-
2sired horses. If at least five of the horses programmed
3to start are not Pennsylvania-sired horses, then the
4licensed corporation conducting the meet shall cancel the
5race.

6(ii) On January 1, 1983, and thereafter at least
7seven of the horses programmed to start shall be
8Pennsylvania-sired horses. If at least seven of the
9horses programmed to start are not Pennsylvania-sired
10horses, then the licensed corporation conducting the meet
11shall cancel the race.

12(iii) On January 1, 1984, and thereafter, only
13Pennsylvania-sired horses shall be allowed to start in
14these races. If all the positions are not filled by
15Pennsylvania-sired horses in these races, then the
16licensed corporation conducting the meet shall cancel the
17race.

18All breakage moneys due licensed corporations for the purses for
19claiming and nonclaiming races under this paragraph but not
20expended as a result of a race cancellation shall be carried
21forward to the next succeeding meet by the licensed corporations
22to be used for claiming and nonclaiming races which restrict
23entry to Pennsylvania-sired horses under the provisions of this
24paragraph.

25(d.1) An amount equivalent to one percent of the amount
26wagered at each racing day at thoroughbred and harness horse
27race meetings as set forth in section 221(a)(4) and (5) shall be
28paid through the Department of Revenue for credit to the State
29Racing Fund.

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

1heretofore distributed shall be kept by the licensed
2corporations for their use.

3Section 223. Pennsylvania Breeding Fund.

4(a) There is hereby created a restricted account in the
5State Racing Fund to be known as the Pennsylvania Breeding Fund
6which shall consist of the money appropriated under the
7provisions of section 222 and which shall be administered by the
8State Horse Racing Commission.

9(b) After the deduction of expenses related to the
10administration and development of the Pennsylvania Breeding Fund
11program incurred by the Pennsylvania Horse Breeders'
12Association, the State Horse Racing Commission shall, by rule or
13regulation, provide for awards as follows:

14(1) An award of 30% of the purse earned by every
15registered Pennsylvania-bred thoroughbred horse sired by a
16registered Pennsylvania sire at the time of conception of the
17registered Pennsylvania-bred thoroughbred horse, or an award
18of 20% of the purse earned by every registered Pennsylvania-
19bred thoroughbred horse sired by a nonregistered sire, which
20finishes first, second or third in any race conducted by a
21licensed corporation under this act shall be paid to the
22breeder of said registered Pennsylvania-bred thoroughbred
23horse. A single award under this paragraph may not exceed 1%
24of the total annual fund money.

25(2) An award of 10% of the purse earned by any
26Pennsylvania-bred thoroughbred horse which finishes first,
27second or third in any race conducted by a licensed
28corporation under this act shall be paid to the owner of the
29registered Pennsylvania sire which regularly stood in
30Pennsylvania at the time of conception of said Pennsylvania-


1bred thoroughbred horse. A single award under this paragraph
2may not exceed .5% of the total annual fund money.

3(3) An award of 10% of the purse earned by any
4registered Pennsylvania-bred thoroughbred horse which
5finishes first in any race conducted by a licensed
6corporation under this act not restricting entry to
7registered Pennsylvania-bred thoroughbred horses shall be
8paid to the licensed owner of said registered Pennsylvania-
9bred thoroughbred horse at the time of winning. A single
10award under this paragraph may not exceed .5% of the total
11annual fund money.

12(c) Up to one-fifth of the total of the estimated fund
13moneys remaining each year after the deduction of expenses
14related to the administration and development of the
15Pennsylvania Breeding Fund program and the payment of breeder,
16stallion and owner awards, shall be divided among the licensed
17corporations that conduct thoroughbred horse race meetings in
18direct proportion to the rate by which each licensed corporation
19generated the fund moneys during the previous year to be used
20solely for purses for Pennsylvania Breeding Fund stakes races
21which restrict entry to registered Pennsylvania-bred
22thoroughbred horses.

23(d) The fund moneys remaining following disbursements as
24directed in subsection (b)(1), (2) and (3) and subsection (c)
25shall be divided among the licensed corporations that conduct
26thoroughbred horse race meetings in direct proportion to the
27rate by which each licensed corporation generated the fund
28moneys during the previous year to be used for purses as
29follows:

30(1) Claiming and nonclaiming Pennsylvania Breeding Fund

1races which restrict entry to registered Pennsylvania-bred
2thoroughbred horses.

3(2) Claiming and nonclaiming Pennsylvania Breeding Fund
4races which prefer registered Pennsylvania-bred thoroughbred
5horses as starters. In these races, should eight or more
6registered Pennsylvania-bred horses pass the entry box, the
7race shall be considered closed to horses other than
8registered Pennsylvania-bred thoroughbred horses.

9(e) Those Pennsylvania Breeding Fund moneys due licensed
10corporations as outlined in subsections (c) and (d) but not
11expended during the calendar year may be carried forth in the
12fund on the account of said licensed corporations to be expended
13during the succeeding year in addition to said corporations'
14fund moneys annually due them for purses.

15(f) The Pennsylvania Breeding Fund Advisory Committee, under
16the jurisdiction of the State Horse Racing Commission, is hereby
17established and shall be part of the Pennsylvania State Horse
18Racing Commission. The commission shall consist of five members,
19all of whom shall be residents of Pennsylvania, to be appointed
20by the commission by June 1 of each year. The committee shall
21consist of two members of the Pennsylvania Horse Breeders'
22Association, one member from the licensed corporations, one
23member from the association representing horsemen racing in
24Pennsylvania and one member of the commission. If any member
25other than the commission member has not been recommended by
26June 1 of each year, the commission shall make an appointment
27for the organization failing to so recommend a member of the
28committee. The committee shall assist and advise the commission
29under the provisions of this act but shall have no power in
30administering the fund. The members of the committee shall

1receive no compensation for their services as members.

2(g) The State Horse Racing Commission may contract with the
3Pennsylvania Horse Breeders' Association as the sole responsible
4body for the registration and records of Pennsylvania-breds. The
5Pennsylvania Horse Breeders' Association shall advise the
6commission when called upon and shall determine the
7qualifications for Pennsylvania-bred thoroughbred horses and
8Pennsylvania sires. Its registration and record facts are hereby
9declared as official Pennsylvania records. At the close of each
10calendar year, the Pennsylvania Horse Breeders' Association,
11through the Pennsylvania Breeding Fund Advisory Committee, shall
12submit to the commission for its approval an itemized budget of
13projected expenses for the ensuing year relating to the
14administration and development of the Pennsylvania Breeding Fund
15program. The commission, on no more than a quarterly basis,
16shall reimburse from the fund the Pennsylvania Horse Breeders'
17Association for those expenses actually incurred in the
18administration and development of the Breeding Fund program.

19Section 224. Pennsylvania Sire Stakes Fund.

20(a) There is hereby created a restricted account in the
21State Racing Fund to be known as the Pennsylvania Sire Stakes
22Fund which shall consist of the money appropriated under the
23provisions of section 222 and which shall be administered by the
24State Harness Racing Commission.

25(b) Sixty percent of the money remaining in the excess fund
26account of the Pennsylvania Sire Stakes Fund at the end of the
27calendar year in which this subsection is enacted shall be
28distributed to licensed corporations that conduct harness horse
29race meetings to be used in the next succeeding calendar year as
30purse money for Pennsylvania-sired horses. The remaining 40% of

1the money in the excess fund account at the end of the calendar
2year of the enactment of this subsection, together with the
3interest earned on that money, shall be distributed to licensed
4corporations that conduct harness horse race meetings to be used
5in the next succeeding calendar year following the next
6succeeding calendar year as purse money for Pennsylvania-sired
7horses. After deduction of sufficient funds to cover the State
8Harness Racing Commission's cost of administration, 80%, unless
9a smaller percentage is necessary in order to comply with the
10minimum dollar requirement of subsection (e), of all remaining
11moneys in the Pennsylvania Sire Stakes Fund at the end of the
12calendar year shall be distributed to licensed corporations that
13conduct harness horse race meetings to be used as purse money
14for Pennsylvania-sired horses. The State Harness Racing
15Commission may then allocate up to a total of and not exceeding
1640% of the total amount to be distributed to licensed
17corporations in a calendar year for use for a series of
18championship final races at the race tracks of licensed
19corporations that conduct harness horse race meetings. The State
20Harness Racing Commission shall allocate the moneys to these
21championship final races in an equal amount for each sex, age
22and gait for two- and three-year-old trotters and pacers. The
23State Harness Racing Commission shall determine conditions
24establishing eligibility to these final events. No pari-mutuel
25harness track shall be awarded more than 50% of the championship
26final races in any calendar year. The State Harness Racing
27Commission shall schedule these final events so as to evenly
28alternate classes at each race track each year. After the
29allocation for the championship final races has been determined,
30the remaining funds to be distributed to licensed corporations

1that conduct harness horse race meetings shall be divided
2equally among the licensed corporations. Each licensed
3corporation shall divide the funds received equally for each of:

4(1) four two-year-old races; one pace for colts, one
5pace for fillies, one trot for colts and one trot for
6fillies; and

7(2) four three-year-old races; one pace for colts, one
8pace for fillies, one trot for colts and one trot for
9fillies.

10(c) Each allotment shall provide purse money for the
11respective races. The purse money shall be in addition to any
12entry fees or other funds available.

13(d) Entry for these races shall be limited to harness horses
14which were sired by a standardbred stallion regularly standing
15in Pennsylvania and each race shall be designated a Pennsylvania
16sire stakes race. The State Harness Racing Commission shall make
17the provisions and regulations as it shall deem necessary for
18the proper administration of the entry restriction.

19(e) The remaining moneys in the Pennsylvania Sire Stakes
20Fund up to a total of and not exceeding $25,000 for each
21agricultural fair and one- or two-day events as defined in
22harness racing commission regulations shall be divided equally
23among those agricultural fairs and one- or two-day events, not
24to exceed more than five one- or two-day events per year and as
25authorized by the State Harness Racing Commission, provided that
26no more than two one-day or two-day events per county are
27authorized unless, after a date established by the commission,
28all five of the events have not been allocated, conducting
29harness horse races for two-year-old and three-year-old harness
30horses: Provided, however, That in no event shall less than

1$225,000 be allocated from the Pennsylvania Sire Stakes Fund and
2be divided equally among those agricultural fairs and one- or
3two-day events conducting these races. Each fair or one- or two-
4day events receiving the funds shall divide the total amount
5equally among all eligible races for two-year-old and three-
6year-old harness horses and shall apply the funds solely as
7additional purse funds. Only races to which entry is restricted
8to Pennsylvania-sired horses shall be eligible. The State
9Harness Racing Commission shall make the provisions and
10regulations as it shall deem necessary for the proper
11administration of all racing provided for in this subsection,
12including, but not limited to, portable stall rentals at one-day
13or two-day events.

14(f) The fund moneys remaining following disbursements as
15directed in subsections (b), (c), (d) and (e) shall, except as
16provided in subsection (b), be divided among active licensed
17corporations that conduct harness horse race meetings under this
18act in direct proportion to the rate by which each licensed
19corporation generated the fund moneys during the previous year.
20The fund moneys so divided shall be used for purses as follows:

21(1) A minimum of four races, claiming and nonclaiming,
22shall be carded per week on the condition sheet for overnight
23claiming and nonclaiming Pennsylvania Fund races which
24restrict entry to registered Pennsylvania-sired or wholly
25Pennsylvania-owned harness horses.

26(2) Claiming and nonclaiming Pennsylvania Fund races
27which prefer registered Pennsylvania-sired harness horses as
28starters. In these races, should seven or more registered
29Pennsylvania-sired harness horses pass the entry box, the
30race shall be considered closed to horses other than

1registered Pennsylvania-sired harness horses.

2Section 225.1. Fair Fund proceeds.

3The Secretary of Agriculture shall distribute certain moneys
4in the Fair Fund annually, on or before March 1, for
5reimbursement for each county agricultural society and each
6independent agricultural society conducting harness horse racing
7during its annual fair other than races for two- and three-year
8old colts and fillies, an amount of money equal to that used
9during their annual fair as purse money for harness horse
10racing, track and stable maintenance, starting gate rental and
11the cost of all harness horse racing officials required during
12their annual fair, but not more than $13,000, a minimum of
13$4,000 of which must be used for purse money and the balance of
14said allotment per fair, not used for purse money over the
15minimum $4,000 allotment, shall be used for said specific
16purposes herein before referenced, or otherwise said allotment
17shall be retained in the fund. The State Harness Racing
18Commission shall cause to be carried out as its responsibility a
19yearly inspection of each track facility and shall advise each
20operating fair of necessary track maintenance which is necessary
21to insure adequate racing surface during the course of scheduled
22fairs and racing events. If it is the opinion of the commission
23that the fair society or event sponsor is not adequately
24financing track maintenance through its permissible
25reimbursement under this paragraph, the commission shall so
26surcharge the Fair Fund account of said fair society or event
27sponsor to effectuate said remediation.

28Section 226. Hearing of refusal or revocation of license.

29If the commissions refuse to grant any license applied for
30under this act, or shall revoke or suspend any license granted,

1the applicant or licensee may demand, within ten days after
2notice of the decision of the appropriate commission, a hearing
3before the appropriate commission. The commission shall give
4prompt notice of the time and place for the hearing at which
5time the commission will hear the applicant or licensee. Pending
6the hearing and final determination, the action of the
7commissions in refusing to grant or in revoking or suspending a
8license shall remain in full force. The commissions may continue
9any hearing from time to time for the convenience of any of the
10parties. Any of the parties affected by a hearing may be
11represented by counsel. In the conduct of the hearing, the
12commissions shall not be bound by technical rules of evidence,
13but all evidence offered before the commissions shall be reduced
14to writing. All evidence, exhibits and findings of the
15commissions shall be permanently preserved and shall constitute
16the record of the commission. In connection with the hearing,
17the commissions shall have the power to administer oaths and
18examine witnesses, and may issue subpoenas to compel attendance
19of witnesses and the production of all material and relevant
20reports, books, papers, documents, correspondence and other
21evidence. The commissions may by order refer to one or more of
22its officers the duty of taking testimony in the matter and to
23report to the commission. Within 30 days after the conclusion of
24the hearing, the appropriate commission shall make a final order
25in writing, setting forth the reasons for the action taken by it
26and a copy thereof shall be served on the applicant or licensee.

27Section 227. Approval of the racing facility.

28The commissions shall not grant to a corporation formed under
29this act a license to conduct a horse race meeting at which
30pari-mutuel betting may be conducted, until the corporation has

1submitted to the appropriate commission a statement of the
2location of its proposed grounds and race track, together with a
3plan of the track and plans of all buildings, seating stands and
4other structures in a form as the appropriate commission may
5prescribe. All plans shall be approved by the appropriate
6commission before the issuance of any license to conduct a pari-
7mutuel horse race meeting.

8Section 228. Prohibition of wagering by certain officials,
9employees and minors.

10No commissioner, executive secretary, deputy, officer,
11representative, employee or counsel of the commission shall
12wager upon the outcome of any horse race conducted at a track at
13which pari-mutuel wagering is conducted by any licensed
14corporation of the commissions. No licensed corporation shall
15permit any person who is actually and apparently under 18 years
16of age to wager at a race meeting conducted by it. No licensed
17corporation shall permit any person who is under 18 years of age
18to attend a horse race meeting conducted by it unless the person
19is accompanied by a parent or guardian. This section shall not
20be construed to prohibit persons under 18 years of age, who are
21legally employed, from being upon the race track premises for
22the sole purpose of engaging in the performance of their duties
23as employees. The commissions shall, by rule, provide for
24enforcement of this section.

25Section 229. State horse racing veterinarians and State
26stewards.

27(a) The State Horse Racing Commission shall appoint and
28employ licensed veterinarians and stewards to serve as the horse
29racing veterinarians and State stewards for horse racing,
30respectively, at each meeting conducted by a corporation

1licensed by the State Horse Racing Commission. The State Horse
2Racing Commission shall have the authority to employ other
3individuals as shall be necessary to carry out the
4responsibilities of this section.

5(b) The costs and compensation of the horse racing
6veterinarians, State stewards and other individuals employed
7shall be fixed and paid by the State Horse Racing Commission.

8(c) The State Horse Racing Commission shall establish a job
9description and professional criteria for stewards to assure
10that they have a working knowledge of the horse racing industry.

11Section 230. State harness racing veterinarians.

12(a) The State Harness Racing Commission shall appoint and
13employ licensed veterinarians to serve as the harness racing
14veterinarians for harness racing at each meeting conducted by a
15corporation licensed by the State Harness Racing Commission. The
16State Harness Racing Commission shall have the authority to
17employ other individuals as shall be necessary to carry out the
18responsibilities under this section.

19(b) The costs and compensation of the harness racing
20veterinarians and other individuals employed to carry out the
21provisions of this act shall be fixed and paid by the State
22Harness Racing Commission.

23Section 231. Free passes, cards or badges.

24(a) A licensed corporation shall not issue free passes,
25cards or badges without admission tax, except to persons
26hereafter described: officers, employees and shareholders of the
27corporation conducting the race meeting; members, officers and
28employees of the commissions; members of horse racing
29associations of other states and foreign countries; public
30officers engaged in the performance of their duties; persons

1employed and accredited by the press to attend such meeting;
2owners, stable managers, trainers, jockeys, concessionaries and
3other persons whose actual duties require their presence at the
4race tracks.

5(b) The commissions may allow a licensed corporation to
6issue free passes, cards or badges for special promotional
7programs and seasonal discount ticket programs, so long as the
8corporation has obtained approval from the appropriate
9commission. The admissions taxes under section 208 shall be
10imposed on the price of all seasonal discount tickets sold by a
11licensed corporation.

12(c) The issuance of tax-free passes, cards or badges shall
13be under the rules and regulations of the commissions. A list of
14all persons, except persons admitted under an approved special
15promotional program or seasonal discount ticket program, to whom
16free passes, cards or badges are issued shall be filed with the
17appropriate commission.

18Section 232. Political subdivision agricultural fairs and horse
19race meetings not licensed to conduct pari-mutuel
20wagering.

21Pari-mutuel wagering on horse races at any county or other
22political subdivision, agricultural or other fair shall not be
23authorized. No lottery, pool selling, bookmaking or any other
24kind of gambling upon the results of races, heats or contests of
25speed of horses shall be allowed at any fair or at any horse
26race meeting conducted in the State, except those licensed to
27operate pari-mutuel wagering under the provisions of this act.

28Section 233. Monitoring of wagering on video screens.

29Every corporation licensed to conduct pari-mutuel betting
30shall display on video screens the approximate odds or

1approximate will-pays on each horse for each race as well as any
2combination of races including, but not limited to, quinellas,
3exactas, perfectas and any other combination or pool of races.
4No display of approximate odds or approximate will-pays shall be
5required where the wager is on horses in four or more races,
6such as "Pick 4, Pick 5 or Pick 6." In addition to displaying
7the amount of money wagered, the approximate odds or approximate
8will-pays on each horse or combination of horses shall be shown
9on video screens in each wagering division. For trifectas, in
10lieu of odds or approximate will-pays, the amount of money being
11wagered on each horse to win in the trifecta pool shall be
12displayed on video screens separately from any other
13information. The above required information shall be displayed
14from the opening of bets or wagering and be continually
15displayed until the wagering is closed. At least one video
16screen in each wagering division shall display the amount of
17money wagered on each horse involved in any trifecta pool.

18Section 234. Simulcasting.

19The State Horse Racing Commission and the State Harness
20Racing Commission shall only permit intrastate simulcasting of
21live racing between two licensed corporations when each
22continues to schedule 95% of the total number of horse or
23harness racing days scheduled in 1986 at the facility where each
24said licensed corporation conducts its horse or harness racing
25dates, and when the average number of live horse or harness
26races per race day equals 90% of the average number of live
27horse or harness races conducted per day in 1985 at the facility
28where each said licensed corporation conducts its horse or
29harness racing dates, subject to any actions or activities
30beyond the control of the licensee: Provided, however, That for

1any licensed corporation that was granted a permanent license
2for horse racing and operating at a facility where the average
3daily handle at the facility at which the licensed corporation
4conducts racing dates is less than $150,000 in any calendar year
5after 1985, the State Horse Racing Commission may permit
6intrastate simulcasting when the licensed corporation first
7schedules a minimum of 50 racing days in the calendar year in
8which it wishes to simulcast. A newly licensed corporation
9racing at the facility may be permitted to intrastate simulcast
10by the State Horse Racing Commission when it first schedules at
11least 50 racing dates in the year in which it wishes to
12simulcast. If a newly licensed corporation is awarded harness or
13horse racing dates after 1987 and races those dates at a horse
14or harness racing facility existing in 1987, other than a
15facility whose average daily handle is less than $150,000, the
16respective commissions shall not permit intrastate simulcasting
17unless the same number of horse or harness dates scheduled at
18that facility in 1987 are scheduled at that facility in the year
19that the corporation wishes to simulcast subject to any actions
20or activities beyond the control of the licensees (i.e. act of
21God, strike). For a licensed corporation awarded racing dates at
22a facility which did not conduct horse or harness racing prior
23to 1987, the respective commissions may permit intrastate
24simulcasting if the licensed corporation is the only corporation
25operating that facility when that corporation first schedules a
26minimum of 125 days of racing dates in the calendar year in
27which it wishes to simulcast or when more than one such
28corporation is awarded dates for racing at the same facility
29when those corporations first schedule a minimum of 200 days of
30racing in the calendar year in which they wish to simulcast. For

1purposes of this section a racing day shall consist of a minimum
2of eight live races, except at thoroughbred tracks on Breeders'
3Cup Event Day. For any licensed racing corporation engaged in
4simulcasting, regardless of location or distance from another
5licensed racing corporation, there shall exist a written
6agreement with the horsemen's organization representing a
7majority of the owners and trainers at both the sending and
8receiving racetracks. If no agreement can be reached, then the
9licensed corporation may petition the court of common pleas in
10the county in which the licensed corporation racetrack is
11located, which may, upon good cause shown by the licensed
12corporation that failure to consent would be detrimental to the
13Pennsylvania racing industry, direct the organization
14representing the horsemen to approve the simulcast agreement.
15The respective commission may then authorize the simulcasting,
16if, in the opinion of the appropriate commission, such
17simulcasting will have significant value to the Pennsylvania
18racing industry. The simulcast signal shall be encoded, and the
19racetrack receiving the simulcast signal shall not send this
20signal anywhere other than public locations authorized under
21section 218 or 218-A. All forms of pari-mutuel wagering
22described in section 221 shall be allowed on races to be
23televised by simulcasting under this section. The State Horse
24Racing Commission and the State Harness Racing Commission may
25promulgate regulations on wagering and the operation of these
26races. All money wagered by patrons on these races shall be
27computed in the amount of money wagered each racing day for
28purposes of taxation under section 222. In the event the
29simulcast is between a thoroughbred racetrack and a harness
30racetrack, both commissions shall have jurisdiction, and any

1approval required hereunder must be received from both
2commissions: Provided, however, That if no agreement can be
3reached between the horsemen's organization aforementioned, then
4the licensed corporation may petition the court of common pleas
5in the county in which the licensed corporation racetrack is
6located, which may, upon good cause shown by the licensed
7corporation that failure to consent would be detrimental to the
8Pennsylvania racing industry, direct the organization
9representing the horsemen to approve the simulcast agreement.
10The respective commissions may then authorize the simulcasting
11if, in the opinions of the respective commission, such
12simulcasting will have a significant value to the Pennsylvania
13racing industry. The provisions of this section with regard to
14the required number of racing days may be waived or modified by
15the applicable commission if the waiver or modification has been
16consented to by the horsemen's organization representing a
17majority of the owners and trainers at the racetrack where the
18racing days are to be scheduled or raced.

19Section 235. Commingling.

20(a) This section shall be applicable only to licensed
21thoroughbred racing corporations.

22(b) The race secretary shall receive entries and
23declarations as an agent for the licensed corporation for which
24the race secretary acts. The race secretary or an individual
25designated by the licensed corporation may receive stakes,
26forfeits, entrance money, jockey's and other fees, purchase
27money in claiming races and other money that can properly come
28into his possession as an agent for the licensed corporation for
29which the race secretary or designee is acting.

30(c) A licensed corporation shall maintain a separate

1account, called a Horsemen's Account. Money owing to owners in
2regard to purses, stakes, rewards, claims and deposits shall be
3deposited into the Horsemen's Account. Funds in the account
4shall be recognized and denominated as being the sole property
5of owners. Deposited funds may not be commingled with funds of
6the licensed corporation unless a licensed corporation has
7established, in favor of the organization which represents a
8majority of the owners and trainers racing with the licensed
9corporation, an irrevocable clean letter of credit with an
10evergreen clause. The minimum amount of the credit must be the
11greater of $1,000,000 or 110% of the highest monthly balance in
12the Horsemen's Account in the immediate prior year. To calculate
13the monthly balance in the Horsemen's Account, the sum of the
14daily balances shall be divided by the number of days in the
15month. The evergreen clause must provide that, 30 days prior to
16the expiration of the letter of credit, the financial
17institution can elect not to renew the letter of credit; that,
18upon this election, the financial institution must notify the
19designee of the organization which represents a majority of the
20owners and trainers racing with the licensed corporation, by
21registered mail, return receipt requested, of the election not
22to renew; and that the financial institution will honor the
23letter of credit for six months after expiration. Purse money
24earned by owners shall be deposited by the licensed corporation
25in the Horsemen's Account within 48 hours after the result of
26the race in which the money was earned has been declared
27official and the purse has been released by the commission.

28(d) A licensed corporation shall designate a bookkeeper who
29is authorized to receive and disburse funds from the Horsemen's
30Account. The bookkeeper must be bonded to provide indemnity for

1malfeasance, nonfeasance and misfeasance. A certified copy of
2the bond shall be filed with the commission.

3(e) The Horsemen's Account and the investment and deposit
4schedules relating to the account are subject to examination, at
5reasonable times, by a designee of the organization which
6represents a majority of the owners and trainers racing with the
7licensed corporation and by the commission. The bookkeeper shall
8provide each owner with access, at reasonable times during a
9racing day, to the amount of funds in the Horsemen's Account
10credited to that owner. At the close of a race meeting, the
11bookkeeper shall mail to each owner a record of deposits,
12withdrawals and transfers affecting the amount of funds in the
13Horsemen's Account credited to that owner.

14(f) The Horsemen's Account shall be audited periodically as
15deemed appropriate by the commission. There shall be at least
16one audit per year. Monthly statements shall be provided to the
17designee of the organization which represents a majority of the
18owners and trainers racing with the licensed corporation.

19(g) Fifty percent of the money earned as interest on funds
20in the Horsemen's Account shall be paid to the organization
21which represents a majority of the owners and trainers racing
22with the licensed corporation on a weekly basis. This amount
23shall be for the benefit of the horsemen as determined by the
24organization which represents the majority of the owners and
25trainers racing with the licensed corporation. The remaining 50%
26of the interest earned shall be for the benefit of the licensed
27corporation which shall have the responsibility to fund all
28costs associated with the administration of the fund. Interest
29each month must be earned in an amount equal to the Federal
30Reserve Discount Rate on the first day of the month.

1Section 236. Harness racing purse moneys.

2Each licensed harness horse racing association must place on
3deposit with the State Harness Racing Commission by March 1 of
4each year an irrevocable letter of credit equivalent to its
5average weekly purse total from the immediate prior year. The
6commission shall hold the letter of credit in trust for the
7harness horsemen racing at that licensed corporation in the
8event that purse checks are not issued or that insufficient
9funds are available to cover the purse checks.

10Section 237. Limitations on day and night racing.

11(a) For the purpose of this section day racing shall be
12racing days for which the starting time for the first race is at
13or before 2:00 p.m., and night racing shall be racing days for
14which the starting time for the first race is after 5:00 p.m.
15Day racing may not be conducted at any racing facility after
161985 on any comparable type racing day or holiday on which day
17racing was not conducted in 1985 unless all presently operating
18licensed corporations conducting day racing agree, in writing,
19to allow such day racing activities.

20(b) Night racing may not be conducted at any racing facility
21after 1985 on any comparable type racing night or holiday on
22which night racing was not conducted in 1985 unless all
23presently operating racing facilities conducting night racing
24agree, in writing, to allow night racing activities.

25(c) Each appropriate commission shall have the authority to
26grant exceptions to this section upon application by a licensed
27racing corporation for not more than five racing days per
28calendar year with respect to each licensed corporation. The
29provisions of this section shall be effective until July 1,
301991.]

1Section 3. The act is amended by adding a chapter to read:

2CHAPTER 2-A

3RACING OVERSIGHT

4Section 201-A. Bureau of Horse Racing.

5(a) Establishment.--The Bureau of Horse Racing is
6established within the board to oversee day-to-day operations of
7horse racing and pari-mutuel operations.

8(b) Jurisdiction.--The board shall have jurisdiction and
9supervisory authority over the following:

10(1) Pari-mutuel horse racing activities in this
11Commonwealth.

12(2) A licensed corporation engaged in pari-mutuel horse
13racing activities.

14(3) Out-of-competition drug testing, which shall include
15the random drug testing of all horses entered in a race,
16stabled on the grounds or shipped into a licensed
17corporation's facility.

18(c) Records.--The board shall maintain at its office the
19following:

20(1) All books, maps, documents and papers entrusted to
21the board's care.

22(2) A docket setting forth the names of all stockholders
23in all corporations licensed under this act. The docket shall
24be open for public inspection.

25(3) The number of shares held by each stockholder and
26the date on which each shareholder acquired stock in the
27licensed corporation.

28(d) Rules and regulations.--The following shall apply:

29(1) All rules and regulations promulgated under the
30former act of December 11, 1967 (P.L.707, No.331), referred

1to as the Pennsylvania Thoroughbred Horse Racing Law, or the
2former act of December 22, 1959 (P.L.1978, No.728), referred
3to as the Pennsylvania Harness Racing Law, shall remain in
4effect except to the extent that they are in direct conflict
5with this act. The board may amend, revise or alter the rules
6and regulations as the board deems necessary.

7(2) In order to facilitate the prompt implementation of
8this chapter, the board may promulgate temporary regulations
9which shall expire no later than two years following the
10effective date of this chapter. The board may promulgate
11temporary regulations not subject to:

12(i) Sections 201, 202 and 203 of the act of July 31,
131968 (P.L.769, No.240), referred to as the Commonwealth
14Documents Law.

15(ii) The act of June 25, 1982 (P.L.633, No.181),
16known as the Regulatory Review Act.

17(e) Licenses.--All licenses issued prior to January 1, 2014,
18shall remain in effect for the remainder of the term for which
19the licenses were issued unless revoked or suspended. After the
20licenses have expired, all renewals or new licenses shall be
21issued under this act. All renewals shall be subject to and made
22consistent with the requirements of 4 Pa.C.S. § 1326 (relating
23to license renewals).

24Section 202-A. Additional powers.

25The board shall supervise horse racing at which pari-mutuel
26wagering is conducted and approve the number of racing days
27allocated by each licensed corporation. In addition to any other
28powers of the board:

29(1) The board shall promulgate both temporary and
30permanent regulations regarding medication rules.

1(2) The board may establish a general promotion and
2marketing program and contract to implement the program to
3assist the licensed corporations in increasing their
4attendance and average daily handle. The board may impose a
5surcharge of up to 1.5% on all purses awarded to a horseman's
6organization which shall be used exclusively for the
7promotion and marketing of racing.

8(3) Except as otherwise provided under this paragraph,
9two years following the effective date of this section, the
10board may, through temporary and permanent regulations,
11increase each year any fee, charge, cost or administrative
12penalty provided in this chapter. The increase may not exceed
13the annual cost-of-living adjustment calculated by applying
14the percentage change in the consumer price index for all
15urban consumers for the Pennsylvania, New Jersey, Delaware
16and Maryland area for the most recent 12-month period for
17which figures have been officially reported by the United
18States Department of Labor, Bureau of Labor Statistics,
19immediately prior to the date the adjustment is due to take
20effect. This paragraph shall not apply to the costs of drug
21testing under section 304.

22(4) The board shall annually submit a budget proposal
23for the enforcement of this act to the General Assembly.

24Section 202.1-A. Payment.

25The rules of the board shall provide that a winning pari-
26mutuel ticket must be presented for payment before April 1 of
27the year following the year of purchase. Failure to present the
28ticket within the prescribed period of time shall constitute a
29waiver of the right to participate in the award. After April 1
30of the year following, a licensed corporation shall forward the

1remaining funds held for uncashed tickets to the Department of
2Revenue. The funds shall be deposited into the State Racing
3Fund. If it is shown to the satisfaction of the board and the
4Department of Revenue, through substantiated and recorded data,
5that the reason for the pari-mutuel ticket or tickets being
6outstanding and unclaimed is loss, misplacement or theft within
7the confines and control of the pari-mutuel department of a
8licensed corporation and it is shown to the satisfaction of the
9board and the Department of Revenue that the pari-mutuel ticket
10or tickets in question have been cashed by the pari-mutuel
11department, the Department of Revenue, with the approval of the
12board, may adjust and credit the licensed corporation's
13outstanding ticket account accordingly on March 31 of the year
14following the year of purchase or after a complete audit of the
15outstanding ticket accounts has been performed. The licensed
16corporation shall reimburse an employee who has been held
17personally accountable and paid for the lost, misplaced or
18stolen ticket.

19Section 203-A. License.

20After January 1, 2015, a corporation shall conduct a horse
21racing meeting at the location designated, as approved by the
22board pursuant to 4 Pa.C.S. §§ 1302 (relating to Category 1 slot
23machine license) and 1303 (relating to to additional Category 1
24slot machine license requirements).

25Section 204-A. (Reserved).

26Section 205-A. Number of horse racing corporations.

27(a) Harness horse racing.--No more than four corporations
28shall be licensed by the board to conduct a pari-mutuel meet. No
29corporation licensed under this act to conduct harness horse
30racing with pari-mutuel wagering shall be licensed to conduct

1thoroughbred horse racing with pari-mutuel wagering.

2(b) Thoroughbred horse racing.--No more than three
3corporations shall be licensed by the board to conduct a pari-
4mutuel meet. No corporation licensed under this act to conduct
5thoroughbred horse racing with pari-mutuel wagering shall be
6licensed to conduct harness horse racing with pari-mutuel
7wagering.

8Section 206-A. Department of Revenue.

9The Department of Revenue shall provide financial
10administration of pari-mutuel wagering under this act. The
11Department of Revenue shall continue to prescribe the form and
12the system of accounting to be employed by the licensed
13corporation, and may access and examine equipment relating to
14pari-mutuel wagering.

15Section 207-A. Allocation of racing days.

16(a) General rule.--Racing shall be conducted consistent with
174 Pa.C.S. § 1303 (relating to additional category 1 slot machine
18license requirements).

19(b) Certification.--The board shall submit to the Secretary
20of Revenue the approved number of racing days for each licensed
21corporation, including the following information:

22(1) the names and addresses of the corporations;

23(2) the names and addresses of the officers and general
24managers of the corporations; and

25(3) any other information the board deems appropriate.

26(c) Cancellation.--If a racing day is canceled by a licensed
27corporation for reasons beyond the licensed corporation's
28control, the board shall grant the licensed corporation the
29right to conduct that racing day in the same or the next ensuing
30calendar year, if schedules permit.

1Section 208-A. Fee for racetrack admissions.

2(a) General rule.--

3(1) Each corporation holding a horse racing meeting
4under this act shall remit to the Department of Revenue a fee
5equal to 50¢ for each individual who attended the horse
6racing meeting. The amount collected shall be deposited into
7the State Racing Fund.

8(2) Nothing under this section shall apply to a racing
9meeting conducted by a State, county or other agricultural
10association.

11(b) Investigation.--The Department of Revenue may examine
12books and records of the corporation conducting a horse racing
13meeting and may hear testimony and take proofs and material or
14any other data for the Department of Revenue's information. The
15Department of Revenue may create an account for the tax due the
16State, with the expense of the examination. A penalty of 5% and
17interest at the rate of 1% per month from the due date to the
18date of payment of the tax shall be payable if tax imposed under
19this section is not paid when due.

20Section 209-A. Licenses for horse racing meetings.

21(a) Procedure and terms.--

22(1) After January 1, 2014, a corporation desiring to
23conduct horse racing meetings for which a Category 1 license
24has been issued and at which pari-mutuel wagering is
25permitted may apply to the board for a license or a renewal
26of any existing license.

27(2) A license holder shall have the privilege to conduct
28a horse racing meeting at which pari-mutuel wagering is
29permitted, but shall not have a property right.

30(3) The board may revoke or suspend the license of a

1corporation if the board finds that the corporation, its
2officers, employees or agents, has not complied with the
3provisions of this act.

4(4) A license may not be transferred without the
5approval of the board.

6(b) Conditions.--Each license shall be issued upon the
7following conditions:

8(1) A horse racing meeting at which pari-mutuel wagering
9is conducted shall be subject to the supervision of the
10board.

11(2) Pari-mutuel wagering conducted shall be subject to
12the supervision of the Department of Revenue.

13(3) The corporation posts a bond or irrevocable letter
14of credit payable to the board in an amount equal to the sum
15of the corporation's average weekly payment of the pari-
16mutuel tax, during active racing, into the State Racing Fund,
17based on revenues generated in the previous year.

18(4) The licensed corporation prints in its racing
19programs the procedure for filing a complaint with the board.

20(c) Applications.--Applications for a licensed corporation
21shall be in the form prescribed by the board and shall contain
22information, material or evidence as the board may require.

23(d) Grounds for denial, revocation or suspension.--The board
24may refuse to grant, may revoke or may suspend a license to a
25corporation, if it determines that:

26(1) Any officer, director, member or stockholder of the
27corporation applying for a license or of any corporation
28which owns stock in or shares in the profits, or participates
29in the management of the affairs of the applicant, or which
30leases to the applicant the track where it shall operate:

1(i) has been convicted of a crime involving moral
2turpitude;

3(ii) has engaged in bookmaking or other forms of
4illegal gambling;

5(iii) has been found guilty of any fraud or
6misrepresentation in connection with racing or breeding;

7(iv) has been guilty of any violation or attempt to
8violate any law, rule or regulation of any racing
9jurisdiction, for which suspension from racing might be
10imposed in such jurisdiction; or

11(v) has violated any rule, regulation or order of
12the board.

13(2) The experience, character or fitness of any officer,
14director or stockholder of the licensed corporation is such
15that the participation of the person in horse racing or
16related activities would be inconsistent with the public
17interest, convenience or necessity or with the best interests
18of racing. If the board determines that the interest of any
19stockholder referred to in this paragraph or in paragraph (1)
20is insufficient to affect adversely the conduct of pari-
21mutuel horse racing by the corporation in accordance with the
22provisions of this act, the board may disregard the interest
23in determining whether or not to grant a license to the
24corporation.

25(3) The corporation has use of the facility consistent
26with the requirements of 4 Pa.C.S. Pt. II (relating to
27gaming).

28(4) A licensed corporation has commingled horsemen's
29funds in violation of section 235-A(c) or has refused to
30place on deposit a letter of credit under section 236-A.

1(5) The charter or certificate of incorporation fails to
2contain a provision requiring any stockholder, upon written
3demand of the corporation, to sell his stock to the
4corporation at a price to be fixed by the board, provided the
5demand be made pursuant to written direction of the board and
6from the date of the making of the demand prohibiting the
7transfer of the certificate of stock except to the
8corporation

9(e) Conditional licenses.--Pending final determination of
10any question under this section, the board may issue a
11conditional license upon such terms and conditions as they see
12fit to effectuate the provisions of this act.

13Section 210-A. (Reserved).

14Section 211-A. Financial and employment interests.

15(a) General rule.--The board shall ensure that a corporation
16applying for a license or a licensed corporation complies with
17the provisions of 4 Pa.C.S. §§ 1512 (relating to financial and 
18employment interests), 1512.1 (relating to additional 
19restrictions) and 1513 (relating to political influence).

20(b) Gifts.--No officer or employee of a licensed corporation
21or their spouses, parents, fathers-in-law, mothers-in-law,
22siblings, sons, daughters, sons-in-law or daughters-in-law shall
23accept gifts from breeders, owners or trainers of horses which
24participate at the race track.

25Section 212-A. Officials at horse racing meetings.

26At all horse racing meetings, qualified judges and starters
27shall be approved by the board. For harness horse racing
28meetings, no person shall be approved as a judge or starter
29unless the person is licensed by the United States Trotting
30Association as a duly qualified pari-mutuel racing meeting

1official. All officials shall enforce the law and shall provide
2written reports of the activities and conduct of such racing
3meetings to the board. The compensation of these judges and
4starters shall be assessed to the board.

5Section 213-A. Licenses for individuals.

6(a) General rule.--The board shall license trainers,
7jockeys, drivers, persons participating in horse racing
8meetings, horse owners and all other persons required to be
9licensed as determined by the board. The license does not give
10its holder a property right.

11(b) Fee.--The board shall fix and may establish classes of
12licenses for license fees to be paid by persons or corporations
13so licensed, provided that such occupational license fees shall
14not exceed $1,000. All fees shall be paid to the board and
15deposited into the State Racing Fund.

16(c) Application.--The application shall be in the form and
17contain the information as the board may require. Applicants
18shall have their fingerprints taken as part of the background
19investigation. The board may exempt applicants from the
20fingerprint requirement for positions not related to the care or
21training of horses, racing, wagering, security or the management
22operations of the racing corporation or racetrack.

23(d) Duration.--All licenses shall be issued for three years
24and shall be renewed, upon payment of the required fee and upon
25compliance with this act.

26(e) Conditional license.--The board may establish a
27conditional license and fee valid for four months within a 12-
28month period. No applicant, however, may receive more than one
29conditional license within 12 months of the issuance of the
30applicant's preceding conditional license.

1(f) Processing and issuance.--The board shall fix the manner
2by which licenses are processed and issued by rule or
3regulation.

4(g) Denial.--The board may refuse to issue a license under
5this section, if they shall find that the applicant:

6(1) Has been convicted of a crime involving moral
7turpitude.

8(2) Has engaged in bookmaking or other form of illegal
9gambling.

10(3) Has been found guilty of any fraud or
11misrepresentation in connection with racing or breeding.

12(4) Has been found guilty of any violation or attempt to
13violate any law, rule or regulation of racing in any
14jurisdiction, for which suspension from racing might be
15imposed in that jurisdiction.

16(5) Has violated any rule, regulation or order of the
17board.

18(6) Has been convicted of an offense relating to fixing
19races.

20(h) Inspection.--The board shall have the right to inspect
21all contracts between licensed corporations and vendors for
22goods and services. The board shall require by rule or
23regulation that vendors disclose to the board all principal
24officers and a description of their interests in the vendors'
25business. Failure to properly disclose this information shall
26constitute grounds to deny, to revoke or to suspend any vendor's
27license issued under the provisions of this act.

28(i) Suspension, revocation and refusal to renew.--The board
29may suspend, refuse to renew or revoke a license issued under
30this section, if it shall determine that:

1(1) The applicant or licensee:

2(i) has been convicted of a crime involving moral
3turpitude;

4(ii) has engaged in bookmaking or other form of
5illegal gambling;

6(iii) has been found guilty of any fraud in
7connection with racing or breeding;

8(iv) has been guilty of any violation or attempt to
9violate any law, rule or regulation of any racing
10jurisdiction for which suspension from racing might be
11imposed in that jurisdiction;

12(v) has violated any rule, regulation or order of
13the board; or

14(vi) has been convicted of a felony offense related
15to the use, possession or sale of drugs or alcohol.

16(2) That the experience, character or general fitness of
17any applicant or licensee is such that the participation of
18the person in horse racing or related activities would be
19inconsistent with the public interest, convenience or
20necessity or with the best interests of racing.

21(3) That the applicant or licensee has been convicted of
22an offense related to fixing races unless the conviction has
23been overturned on appeal under the laws of the jurisdiction
24of the original finding.

25(j) Temporary license.--Pending final determination of any
26question under this section, the board may issue a temporary
27license upon such terms and conditions as they may deem
28necessary or proper to effectuate the provisions of this act.

29(k) Hearings.--The board may suspend a license under
30subsection (i) pending a hearing on the matter. The hearing must

1take place within ten days of the suspension.

2(l) Reciprocity.--The board shall not grant licenses to
3citizens of states that do not grant licenses to citizens of
4this Commonwealth on the basis of in-state preference.

5Section 213.1-A. Licenses for advanced deposit wagering,
6totalisator and medication providers.

7The board shall have jurisdiction over the following:

8(1) A person that offers advanced deposit wagering or
9Internet wagering to residents of this Commonwealth,
10regardless of the location of the provider. Any person or
11entity under this paragraph shall be licensed by the board
12and remit an annual license fee not to exceed $100,000. The
13provider shall certify to the board that it has complied with
14all applicable account wagering tax laws in this Commonwealth
15and submit information on operating systems and procedures as
16required by the board.

17(2) A person that provides totalisator services to a
18racing association located in this Commonwealth, including a
19totalisator company located in this Commonwealth or operating
20from a location outside this Commonwealth. A totalisator
21company under this paragraph shall be licensed by the board
22and remit an annual license fee not to exceed $100,000. The
23provider shall submit information on operating systems and
24procedures as required by the board.

25(3) A manufacturer, wholesaler, distributor or vendor of
26any equine drug, medication, therapeutic substance or
27metabolic derivative purchased by or delivered to a licensee
28or other person participating in horse racing in this
29Commonwealth by means of Internet, mail delivery, in person
30delivery or other means.

1Section 214-A. Power of board to impose fines.

2(a) General rule.--The board is authorized to impose
3administrative fines upon any corporation, association or person
4participating in any way in any horse racing meeting at which
5pari-mutuel wagering is conducted, other than as a patron and
6whether licensed by the board or not, for a violation of any
7provision of this act, not exceeding $100,000 for each
8violation, which fines shall be credited to the State Racing
9Fund and may be appropriated for the enforcement of this act.

10(b) Interests.--

11(1) No officer or employee of a licensed corporation or
12their spouses, parents, fathers-in-law, mothers-in-law,
13siblings, sons, daughters, sons-in-law or daughters-in-law
14shall have any direct or indirect interest in a race horse
15that is participating in a race at a meet at which the person
16or relative listed under this paragraph holds any interest in
17the licensed corporation conducting the meet and the track
18facility.

19(2) The board shall impose a fine upon any person for
20violation of this subsection as provided for under subsection
21(a).

22Section 215-A. Security personnel, powers and duties and
23penalty.

24(a) General rule.--The board and any licensed corporations
25are authorized and empowered to employ persons as security
26personnel. The designated persons are also authorized to
27interrogate and eject from the racing meeting grounds or
28enclosure any persons suspected of violating this act.

29(b) Penalty.--A person found within a race track enclosure
30after having been refused admission thereto or ejected therefrom

1shall, upon conviction, be guilty of a summary offense and be
2sentenced to pay a fine of not more than $500.

3Section 216-A. (Reserved).

4Section 216.1-A. Televised international and interstate
5simulcastings of horse races.

6(a) Host licensees.--Upon request by a licensed corporation,
7the board may grant permission to maintain common pari-mutuel
8pools on international and interstate races transmitted to and
9from the racetrack enclosures within this Commonwealth. The
10licensed corporation shall be designated as the "host licensee."
11All simulcasts of such horse races shall also comply with the
12provisions of the Interstate Horseracing Act of 1978 (Public Law
1395-515, 15 U.S.C. § 3001 et seq.) and all forms of pari-mutuel
14wagering, where lawful in each state involved, placed or
15transmitted by an individual in one state via telephone,
16Internet or other electronic media and accepted and maintained
17in common pari-mutuel pools. The permission to act as host
18licensee for international and interstate simulcast races shall
19be limited to licensed corporations which comply with 4 Pa.C.S.
20§ 1303(d) (relating to additional Category 1 slot machine
21license requirements).

22(b) Simulcasts.--The following apply:

23(1) Cross simulcasting of the races described in
24subsection (a) shall be permitted if all amounts wagered on
25the races in this Commonwealth are included in common pari-
26mutuel pools. A host licensee seeking permission to cross
27simulcast must obtain approval from the board. Simulcasts of
28horse races shall also comply with the provisions of the
29Interstate Horseracing Act of 1978.

30(2) Forms of pari-mutuel wagering shall be allowed on

1horse races to be televised by simulcasting. The board may
2permit pari-mutuel pools in this Commonwealth to be combined
3with pari-mutuel pools created under the laws of another
4jurisdiction and may permit pari-mutuel pools created under
5the laws of another jurisdiction to be combined with pari-
6mutuel pools in this Commonwealth. The board may promulgate
7regulations necessary to regulate wagering on televised
8simulcasts.

9(c) Taxation.--Money wagered by patrons in this Commonwealth
10on the horse races shall be computed by the amount of money
11wagered each racing day for purposes of taxation under section
12222-A. Thoroughbred races shall be considered a part of a
13thoroughbred horse racing meeting and harness horse races shall
14be considered a part of a harness horse racing meeting for
15purposes of section 222-A(b)(5).

16Section 217-A. (Reserved).

17Section 218.1-A. Place and manner of conducting pari-mutuel
18wagering.

19(a) Wagering location.--A licensed corporation shall provide
20a location during a horse racing meeting within the racetrack
21enclosure where the licensed corporation shall operate the pari-
22mutuel system of wagering by its patrons on the results of horse
23races held at the meetings or televised to the racetrack
24enclosure by simulcasting, as set forth under section 216.1-A.
25The licensed corporation shall erect a sign or board compatible
26with the totalisator systems upon which shall be displayed all
27of the following:

28(1) The approximate straight odds on each horse in any
29race.

30(2) The value of a winning mutuel ticket, straight,

1place or show on the first three horses in the race.

2(3) The elapsed time of the race.

3(4) The value of a winning daily double ticket, if a
4daily double be conducted, and any other information that the
5board may deem necessary for the guidance of the general
6public.

7(a.1) Equipment.--The board may test and examine the
8equipment to be used for the display of the information in
9subsection (a)(1), (2), (3) and (4).

10(b) Advanced deposit wagering and Internet wagering.--Upon
11request by any licensed corporation, the board may grant
12permission to the licensed corporation to operate advanced
13deposit wagering or Internet wagering on horse racing only, in
14accordance with all of the following:

15(1) Messages to place wagers must be to a place within
16the racetrack enclosure.

17(2) Money used to place such wagers must be on deposit
18in an amount sufficient to cover the wager at the racetrack
19where the account is opened.

20The board may promulgate regulations necessary to regulate
21advanced deposit wagering and Internet wagering for horse racing
22only.

23(c) Taxation.--Money wagered as a result of advanced deposit
24wagering or Internet wagering shall be included in the amount
25wagered each racing day for purposes of taxation under section
26222-A and shall be included in the same pari-mutuel pools for
27each posted race. Advanced deposit wagering or Internet wagering
28shall be operated by the licensed corporations or by a duly
29licensed vendor.

30(d) Conditions.--A licensed corporation shall only accept

1and tabulate a wager by a direct request via telephone, Internet
2or other electronic media from the holder of an advanced deposit
3wagering or Internet wagering account. Only the holder of the
4advanced deposit wagering or Internet wagering account shall
5place a wager. Any person who violates this subsection commits a
6misdemeanor of the first degree.

7(e) Primary market area.--A licensed corporation may not
8accept a wager nor establish advanced deposit wagering or
9Internet wagering for any person located in the primary market
10area of a racetrack, other than the racetrack at which the
11licensed corporation is conducting a racing meet. Nothing in
12this subsection shall be construed to prohibit the licensed
13corporation from accepting a wager from, or establishing an
14advanced deposit wagering or Internet wagering account for any
15person located in the primary market area of the track where the
16licensed corporation is conducting a meet. If two tracks share
17primary market area, both tracks shall have equal rights to the
18market in the shared area.

19(f) Definitions.--The following words and phrases when used
20in this section shall have the meanings given to them in this
21subsection, unless the context clearly indicates otherwise:

22"Primary market area of a racetrack." The land area included
23in a circle drawn with the racetrack as the center and a radius
24of 35 air miles.

25"Secondary market area of a racetrack." The land area
26included in a circle drawn with the racetrack as the center and
27a radius of 50 air miles, but not including the primary market
28area of the racetrack.

29Section 218.2-A. Pari-mutuel wagering at nonprimary locations.

30(a) Nonprimary locations.--The following shall apply:

1(1) Notwithstanding any other provisions of this act, on
2or after January 2014, upon approval by the board, a licensed
3corporation may continue to operate a nonprimary location
4where it has conducted pari-mutuel wagering on horse races
5conducted by the licensed corporation. The licensed
6corporation may continue to conduct pari-mutuel wagering at
7the location on horse races conducted by another licensed
8corporation, which horse races may be televised to the
9location or on horse races simulcast to the location under
10section 216-A, provided that:

11(i) A licensed corporation has not established a
12nonprimary location within the primary market area of any
13racetrack other than a racetrack where the licensed
14corporation conducts racing meetings. Establishment of a
15nonprimary location by a licensed corporation within the
16primary market area of a racetrack where the licensed
17corporation conducts racing meetings shall require
18approval of the board regulating the activities of the
19licensed corporation.

20(ii) A licensed corporation has not established a
21nonprimary location within the secondary market area of a
22racetrack if the nonprimary location is approved by the
23board.

24(iii) A licensed corporation has not established a
25nonprimary location in an area outside the primary and
26secondary market areas of any racetrack if the location
27is approved by the board.

28(2) Except as provided under paragraph (1), no
29additional licenses shall be permitted.

30(b) Intent of nonprimary locations.--The following apply:

1(1) (Reserved).

2(2) (Reserved).

3(3) The board shall annually conduct inspections of the
4primary facility.

5(4) The rights, duties and obligations of the board
6shall apply to nonprimary locations and any employees or
7vendors of the licensed corporation establishing the
8nonprimary location.

9(c) Taxation and records.--Money wagered at all primary and
10nonprimary locations under this act shall be included in common
11pari-mutuel pools. Money wagered by patrons on the races shall
12be computed by the amount of money wagered each racing day for
13purposes of taxation under section 222-A. The licensed
14corporation conducting the racing meeting and maintaining the
15pari-mutuel pools shall maintain accurate records of the amount
16wagered in each pool from every primary and nonprimary location.

17(d) Retention.--The retained money as provided for in
18section 222-A(e) shall be calculated for each location where
19pari-mutuel wagering is being conducted. If wagering has taken
20place at a nonprimary location where the wagering is conducted
21by a licensed corporation other than the licensed corporation
22conducting the racing meeting, the licensed corporation
23conducting the racing meeting shall retain any money to which it
24is entitled by agreement. The licensed corporation conducting
25the meeting shall pay over the balance of the retained money to
26the licensed corporation conducting the wagering at the
27nonprimary location.

28(e) Payment of purses.--A licensed corporation conducting a
29racing meeting where pari-mutuel wagering is conducted at one or
30more nonprimary locations shall distribute to the horsemen's

1organization representing a majority of owners and trainers at
2its racetrack, or in accordance with the practice of the
3parties, to be used for payment of purses at that racetrack, as
4follows:

5(1) Except as provided for in paragraphs (2), (3), (4)
6and (5), an amount equal to but not less than 6% of the daily
7gross wagering handle on the races at a nonprimary location.

8(2) When the gross wagering handle on the races at a
9nonprimary location on a given day is less than $30,000, the
10percentage may not be less than 3%.

11(3) When the gross wagering handle on the races at a
12nonprimary location on a given day is between $30,000 and
13$75,000 inclusive, the percentage may not be less than 4.75%.

14(4) Whenever a nonprimary location is within the primary
15market area of a licensed corporation other than the licensed
16corporation conducting the races, the applicable percentage
17shall be distributed one-half to the horsemen's organization
18representing a majority of owners and trainers at the
19racetrack or in accordance with the practice of the parties.

20(5) Where the racing meeting is being conducted to be
21used for the payment of purses at the racetrack and one-half
22to the horsemen's organization, or in accordance with the
23practice of the parties, at the racetrack within the primary
24market area to be used for the payment of purses at the
25racetrack.

26Nothing in this subsection shall be construed to prevent a
27licensed corporation from agreeing to distribute amounts greater
28than the percentages set forth in this subsection. However, if
29no alternative agreement has been reached, the total percentage
30paid for purses under this subsection shall be in accordance

1with the minimum percentages set forth in this subparagraph.

2(f) Other payments.--Notwithstanding any other provision of
3this act, a nonprimary location may be established within the
4primary market area of a racetrack by agreement between the
5licensed corporation and the horsemen's organization
6representing a majority of the owners and trainers at the
7racetrack specifying the total percentage of handle wagered at
8the nonprimary location to be distributed to the horsemen's
9organization, or in accordance with the practice of the parties,
10to be used for the payment of purses at that racetrack. If no
11agreement is reached covering the locations, the total
12percentage to be paid for purses shall be the same as that
13applied to on-track wagering at the racetrack located within the
14primary market area.

15(g) Definitions.--The following words and phrases when used
16in this section shall have the meanings given to them in this
17subsection, unless the context clearly indicates otherwise:

18"Primary market area of a racetrack." The land area included
19in a circle drawn with the racetrack as the center and a radius
20of 35 air miles.

21"Secondary market area of a racetrack." The land area
22included in a circle drawn with the racetrack as the center and
23a radius of 50 air miles, but not including the primary market
24area of the racetrack.

25Section 219-A. Books and records of pari-mutuel wagering.

26Every Category 1 licensed facility that conducts a horse
27racing meeting at which pari-mutuel wagering is authorized,
28shall keep books and records so as to clearly show by separate
29record the total amount of money contributed to every pari-
30mutuel pool. The Department of Revenue or its authorized

1representative shall have access to all books and records for
2the purpose of examining the same and ascertaining whether the
3proper amount due to the State is being paid by the licensed
4corporation.

5Section 220-A. Filing of certain agreements with the board.

6A corporation licensed to conduct horse racing meetings where
7pari-mutuel wagering is permitted shall promptly after entering
8any lease agreement concerning any concession, labor management
9relation, hiring of designated classes of officers, employees or
10contractors specified by the board or any other contract or
11agreement as the board may prescribe, file with the board a true
12and correct copy.

13Section 221-A. Retention percentages for pari-mutuel pools.

14(a) Distribution.--A licensed corporation shall distribute
15the money in any pari-mutuel pool to the holders of winning
16tickets under the following requirements:

17(1) all tickets shall be presented for payment before
18the first day of April of the year following the year of
19their purchase;

20(2) (i) seventeen percent of the money plus the
21breakage from regular wagering pools shall be retained by
22the licensed corporations for further distribution under
23section 222-A;

24(ii) nineteen percent of the money plus the breakage
25from regular wagering pools from licensed corporations
26whose total deposits in all pari-mutuel pools averaged
27less than $300,000 per racing day for their previous
28meeting at the same facility shall be retained by the
29licensed corporations for further distribution under
30section 222-A;

1(iii) twenty percent of the money plus the breakage
2from the exacta, daily double, quinella and other
3wagering pools involving two horses each racing day shall
4be retained by the licensed corporations for further
5distribution under section 222-A; or

6(iv) at least 26% but no more than 35% of the money
7plus the breakage from the trifecta or other wagering
8pools involving more than two horses in one or more races
9each racing day shall be retained by the licensed
10corporations for further distribution under section
11222-A;

12(3) except as provided for in section 222-A(d.1), a
13corporation may retain less than 17%, 19% or 20% of the money
14in the wagering pools under subparagraphs (i), (ii) and (iii)
15or less than 26% of the money in the wagering pools under
16subparagraph (iv) upon approval from the board;

17(4) every corporation may retain more than 25% but no
18more than 35% of the money in the wagering pools under
19subparagraph (iv) upon approval from the board; and

20(5) all money remaining in the wagering pools described
21under paragraphs (2), (3) and (4) shall be distributed to the
22holders of winning tickets.

23(b) Definition.--As used in this section, the term
24"breakage" shall mean the odd cents of redistributions to be
25made on contributions to pari-mutuel pools exceeding a sum equal
26to the next lowest multiple of ten.

27Section 222-A. Distribution of money retained from pari-mutuel
28pools and taxation.

29(a) Fund.--There is hereby established the State Racing Fund
30in the State Treasury. A licensed corporation that conducts

1horse racing meetings shall pay a tax through the Department of
2Revenue for credit to the State Racing Fund. The tax imposed on
3the licensed corporation shall be a percentage tax of 1.5% on
4the amount wagered each racing day and be paid from the money
5retained under section 221-A.

6(a.1) Payment periods.--At the close of each day of racing,
7a corporation licensed to conduct horse racing meetings shall
8pay out of the money retained on that day under section 221-A,
9through the Department of Revenue for credit to the State Racing
10Fund.

11(b) Distribution.--The board shall appropriate money in the
12State Racing Fund in the following manner:

13(1) An amount equivalent to 1% of the amount wagered
14each racing day at thoroughbred horse racing meetings shall
15be paid by the board from the State Racing Fund through the
16Department of Revenue for credit to the Pennsylvania Breeding
17Fund.

18(2) An amount equivalent to 1.5% of the amount wagered
19each racing day at harness horse racing meetings shall be
20paid by the board from the State Racing Fund through the
21Department of Revenue for credit to the Pennsylvania Sire
22Stakes Fund.

23(c) Breakage for horse racing meetings.--All breakage
24retained under section 221-A by licensed corporations that
25conduct horse racing meetings shall be distributed in the
26following manner:

27(1) Seventy-five percent of the breakage shall be paid
28to the Department of Revenue for credit to the State Racing
29Fund.

30(2) Twenty-five percent of the breakage shall be

1retained by the licensed corporations to be used solely for
2purses to the horsemen. All breakage money due licensed
3corporations for the purses for claiming and nonclaiming
4races under this paragraph but not expended as a result of a
5race cancellation shall be carried forward to the next
6succeeding meet by the licensed corporations to be used for
7claiming and nonclaiming races which restrict entry to
8Pennsylvania-sired horses under the provisions of this
9paragraph.

10(d) State Racing Fund.--An amount equivalent to 1% of the
11amount wagered at each racing day at horse racing meetings as
12set forth in section 221-A(a)(4) and (5) shall be paid through
13the Department of Revenue for credit to the State Racing Fund.

14(e) Remaining money.--All remaining money retained under
15section 221-A and not distributed under the preceding
16subsections shall be kept by the licensed corporations.

17Section 223-A. Pennsylvania Breeding Fund.

18(a) Establishment.--There is hereby created a restricted
19account in the State Racing Fund to be known as the Pennsylvania
20Breeding Fund which shall consist of the money deposited under
21the provisions of section 222-A and which shall be administered
22by the board.

23(b) Awards from the Pennsylvania Breeding Fund.--The board
24shall provide for awards as follows:

25(1) An award of 30% of the purse earned by every
26registered Pennsylvania-bred thoroughbred racing horse sired
27by a registered Pennsylvania sire at the time of conception
28of the registered Pennsylvania-bred thoroughbred horse, or an
29award of 20% of the purse earned by every registered
30Pennsylvania-bred thoroughbred horse sired by a nonregistered

1sire, which finishes first, second or third in any race
2conducted by a licensed corporation under this act shall be
3paid to the breeder of said registered Pennsylvania-bred
4thoroughbred horse. A single award under this paragraph may
5not exceed 1% of the total annual fund money.

6(2) An award of 10% of the purse earned by any
7Pennsylvania-bred thoroughbred horse which finishes first,
8second or third in any race conducted by a licensed
9corporation under this act shall be paid to the owner of the
10registered Pennsylvania sire which regularly stood in
11Pennsylvania at the time of conception of said Pennsylvania-
12bred thoroughbred horse. A single award under this paragraph
13may not exceed 0.5% of the total annual fund money.

14(3) An award of 10% of the purse earned by any
15registered Pennsylvania-bred thoroughbred horse which
16finishes first in any race conducted by a licensed
17corporation under this act not restricting entry to
18registered Pennsylvania-bred thoroughbred horses shall be
19paid to the licensed owner of said registered Pennsylvania-
20bred thoroughbred horse at the time of winning. A single
21award under this paragraph may not exceed 0.5% of the total
22annual fund money.

23(c) Purses for Pennsylvania Breeding Fund stakes races.--Up
24to one-fifth of the total of the estimated fund money remaining
25each year after the deduction of expenses related to the
26administration and development of the Pennsylvania Breeding Fund
27program and the payment of breeder, stallion and owner awards,
28shall be divided among the licensed corporations that conduct
29thoroughbred horse racing meetings in direct proportion to the
30rate by which each licensed corporation generated the fund money

1during the previous year to be used solely for purses for
2Pennsylvania Breeding Fund stakes races which restrict entry to
3registered Pennsylvania-bred thoroughbred horses.

4(d) Remaining funds.--The fund money remaining following
5disbursements as directed in subsection (b)(1), (2) and (3) and
6subsection (c) shall be divided among the licensed corporations
7that conduct thoroughbred horse racing meetings in direct
8proportion to the rate by which each licensed corporation
9generated the fund money during the previous year to be used for
10purses as follows:

11(1) Claiming and nonclaiming Pennsylvania Breeding Fund
12races which restrict entry to registered Pennsylvania-bred
13thoroughbred horses.

14(2) Claiming and nonclaiming Pennsylvania Breeding Fund
15races which prefer registered Pennsylvania-bred thoroughbred
16horses as starters. In these races, should eight or more
17registered Pennsylvania-bred horses pass the entry box, the
18race shall be considered closed to horses other than
19registered Pennsylvania-bred thoroughbred horses.

20(e) Funds not expended.--Pennsylvania Breeding Fund money
21due licensed corporations, as outlined in subsections (c) and
22(d), but not expended during the calendar year may be carried
23forth in the fund on the account of the licensed corporations to
24be expended during the succeeding year in addition to the
25corporations' fund money annually due them for purses.

26(f) Pennsylvania Horse Breeders' Association.--The board may 
27contract with the Pennsylvania Horse Breeders' Association as 
28the sole responsible body for the registration and records of 
29Pennsylvania-bred horses. The Pennsylvania Horse Breeders' 
30Association shall advise the board when called upon and shall
 

1determine the qualifications for Pennsylvania-bred thoroughbred 
2horses and Pennsylvania sires. Its registration and record facts 
3are hereby declared as official Pennsylvania records. At the 
4close of each calendar year, the Pennsylvania Horse Breeders' 
5Association, through the Pennsylvania Breeding Fund Advisory 
6Committee, shall submit to the board for its approval an 
7itemized budget of projected expenses for the ensuing year 
8relating to the administration and development of the 
9Pennsylvania Breeding Fund program. The board, on no more than a 
10quarterly basis, shall reimburse from the fund the Pennsylvania 
11Horse Breeders' Association for those expenses actually incurred 
12in the administration and development of the Pennsylvania
13Breeding Fund program.

14Section 224-A. Pennsylvania Sire Stakes Fund.

15(a) Establishment.--There is created a restricted account in
16the State Racing Fund to be known as the Pennsylvania Sire
17Stakes Fund which shall consist of the money appropriated under
18the provisions of section 222-A and which shall be administered
19by the board.

20(b) Distribution and use of funds.--Funds shall be
21distributed as follows:

22(1) Sixty percent of the money remaining in the excess
23fund account of the Pennsylvania Sire Stakes Fund at the end
24of the calendar year in which this subsection is enacted
25shall be distributed to licensed corporations that conduct
26harness horse racing meetings to be used in the next
27succeeding calendar year as purse money for Pennsylvania-
28sired horses. The remaining 40% of the money in the excess
29fund account at the end of the calendar year of the enactment
30of this subsection, together with the interest earned on that

1money, shall be distributed to licensed corporations that
2conduct harness horse racing meetings to be used in the next
3succeeding calendar year following the next succeeding
4calendar year as purse money for Pennsylvania-sired horses.

5(2) After deduction of sufficient funds to cover the
6board's cost of administration, 80% of all remaining money in
7the Pennsylvania Sire Stakes Fund at the end of the calendar
8year shall be distributed to licensed corporations that
9conduct harness horse racing meetings to be used as purse
10money for Pennsylvania-sired horses. The board may then
11allocate up to a total of and not exceeding 40% of the total
12amount to be distributed to licensed corporations in a
13calendar year for use for a series of championship final
14races at the race tracks of licensed corporations that
15conduct harness horse racing meetings. The board shall
16allocate the money to these championship final races in an
17equal amount for each sex, age and gait for two-year-old and
18three-year-old trotters and pacers. The board shall determine
19conditions establishing eligibility to these final events. No
20pari-mutuel harness track shall be awarded more than 50% of
21the championship final races in any calendar year. The board
22shall schedule these final events so as to evenly alternate
23classes at each race track each year. After the allocation
24for the championship final races has been determined, the
25remaining funds to be distributed to licensed corporations
26that conduct harness horse racing meetings shall be divided
27equally among the licensed corporations. Each licensed
28corporation shall divide the funds received equally for each
29of:

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

1pace for fillies, one trot for colts and one trot for
2fillies; and

3(ii) four three-year-old races; one pace for colts,
4one pace for fillies, one trot for colts and one trot for
5fillies.

6(c) Purse money.--Each allotment shall provide purse money
7for the respective races. The purse money shall be in addition
8to any entry fees or other funds available.

9(d) Entry restriction.--Entry for these races shall be
10limited to harness horses which were sired by a standardbred
11stallion regularly standing in Pennsylvania and each race shall
12be designated a Pennsylvania sire stakes race. The board shall
13make the provisions and regulations as it shall deem necessary
14for the proper administration of the entry restriction.

15Section 225-A. Fair Fund proceeds.

16The Secretary of Agriculture shall distribute certain money
17in the Fair Fund annually, on or before March 1, for
18reimbursement for each county agricultural society and each
19independent agricultural society conducting harness horse racing
20during its annual fair, other than races for two-year-old and
21three-year-old colts and fillies, an amount of money equal to
22that used during their annual fair as purse money for harness
23horse racing, track and stable maintenance, starting gate rental
24and the cost of all harness horse racing officials required
25during their annual fair. The reimbursement amount may not be
26more than $13,000, a minimum of $4,000 of which must be used for
27purse money and the balance of the allotment per fair, not used
28for purse money over the minimum $4,000 allotment, shall be used
29for the specific purposes referenced above or otherwise the
30allotment shall be retained in the fund. The Department of

1Agriculture shall cause to be carried out as its responsibility
2a yearly inspection of each track facility and shall advise each
3operating fair of track maintenance which is necessary to ensure
4adequate racing surface during the course of scheduled fairs and
5racing events. If it is the opinion of the Department of
6Agriculture that the fair society or event sponsor is not
7adequately financing track maintenance through its permissible
8reimbursement under this paragraph, the board shall so surcharge
9the Fair Fund account of the fair society or event sponsor to
10effectuate the remediation.

11Section 226-A. Hearing of refusal or revocation of license.

12If the board refuses to grant any license applied for under
13this act, or shall revoke or suspend any license granted, the
14applicant or licensee may demand, within ten days after notice
15of the decision of the board, a hearing before the board. The
16provisions of 2 Pa.C.S. Chs. 5 Subch. A (relating to practice
17and procedure) and 7 Subch. A (relating to judicial review)
18shall apply.

19Section 227-A. (Reserved).

20Section 228-A. Prohibition of wagering by certain officials,
21employees and minors.

22No deputy, officer, representative, employee or counsel of
23the board shall wager upon the outcome of any horse race
24conducted at a track at which pari-mutuel wagering is conducted
25by any licensed corporation of the board. No licensed
26corporation shall permit any person who is actually and
27apparently under 18 years of age to wager at a racing meeting
28conducted by the corporation. No licensed corporation shall
29permit any person who is under 18 years of age to attend a horse
30racing meeting conducted by the corporation unless the person is

1accompanied by a parent or guardian. This section shall not be
2construed to prohibit persons under 18 years of age, who are
3legally employed, from being upon the race track premises for
4the sole purpose of engaging in the performance of their duties
5as employees. The board shall, by rule, provide for enforcement
6of this section.

7Section 229-A. State horse racing and harness horse racing
8veterinarians and State stewards.

9(a) General rule.--The board shall have the authority to
10contract with licensed veterinarians and stewards to serve at
11each meeting conducted by a corporation licensed by the board.
12The board shall have the authority to employ other individuals
13as shall be necessary to carry out the responsibilities of this
14section.

15(b) Costs and compensation.--The costs and compensation of
16the horse racing veterinarians, State stewards and other
17individuals employed shall be fixed and paid by the board.

18(c) Steward requirements.--The board shall establish a job
19description and professional criteria for stewards to assure
20that they have a working knowledge of the horse racing industry.

21Section 230-A. (Reserved).

22Section 231-A. Free passes, cards or badges.

23(a) Issuance.--A licensed corporation may not issue a free
24pass, card or badge, without admission tax except to:

25(1) an officer, employee or shareholder of the
26corporation conducting the racing meeting;

27(2) a member, officer or employee of the board;

28(3) a member of a horse racing association of another
29state or foreign country;

30(4) a public officer engaged in the performance of his

1duty;

2(5) a person employed and accredited by the press to
3attend the meeting; or

4(6) an owner, stable manager, trainer, jockey,
5concessionary or other person whose duties require a presence
6at the race track.

7(b) Promotions and discounts.--The board may allow a
8licensed corporation to issue a free pass, card or badge for a
9special promotional program and seasonal discount ticket
10program, so long as the corporation obtained approval from the
11board. The admission tax under section 208-A must be imposed on
12the price of the seasonal discount tickets sold by a licensed
13corporation.

14(c) Rules and regulations.--The issuance of tax-free passes,
15cards or badges must be under the rules and regulations of the
16board.

17(d) List.--Except persons admitted under an approved special
18promotional program or seasonal discount ticket program, a list
19of the persons to whom a free pass, card or badge is issued must
20be filed with the board.

21Section 232-A. (Reserved).

22Section 233-A. Monitoring of wagering on video screens.

23A corporation licensed to conduct pari-mutuel betting shall
24display on video screens the approximate odds or approximate
25will-pays on each horse for each race as well as a combination
26of races including, but not limited to, quinellas, exactas,
27perfectas and any other combination or pool of races. A display
28of approximate odds or approximate will-pays is not required
29where the wager is on horses in four or more races, such as
30"Pick 4, Pick 5 or Pick 6." In addition to displaying the amount

1of money wagered, the approximate odds or approximate will-pays
2on each horse or combination of horses must be shown on video
3screens in each wagering division. For trifectas, in lieu of
4odds or approximate will-pays, the amount of money being wagered
5on each horse to win in the trifecta pool must be displayed on
6video screens separately from any other information. The above
7required information must be displayed from the opening of bets
8or wagering and be continually displayed until the wagering is
9closed. At least one video screen in each wagering division
10shall display the amount of money wagered on each horse involved
11in a trifecta pool.

12Section 234-A. Simulcasting.

13(a) General rule.--The board shall permit intrastate
14simulcasting of live racing.

15(b) Simulcast signal.--The simulcast signal shall be
16encoded, and the racetrack receiving the simulcast signal may
17not send the signal anywhere other than a public location
18authorized under section 218.1-A or 218.2-A.

19(c) Forms of pari-mutuel wagering.--The forms of pari-mutuel
20wagering described in section 221-A are allowed on a race to be
21televised by simulcasting under this section.

22(d) Regulations.--The board may promulgate regulations on
23wagering and the operation of a race.

24(e) Computation of money wagered.--The money wagered by a
25patron on a race must be computed in the amount of money wagered
26each racing day for purposes of taxation under section 222-A.

27(f) Between thoroughbred and harness horse racetracks.--If a
28simulcast is between a thoroughbred racetrack and a harness
29horse racetrack, the board has jurisdiction. An approval
30required under this section must be received from the board,

1provided that if an agreement is not reached between the
2organization representing the horsemen, the licensed corporation
3may petition the court of common pleas in the county in which
4the licensed corporation racetrack is located. The court of
5common pleas may direct the organization representing the
6horsemen to approve the simulcast agreement upon good cause
7shown by the licensed corporation that failure to consent would
8be detrimental to the Pennsylvania racing industry. The board
9may then authorize the simulcasting if the simulcasting will
10have a significant value to the Pennsylvania racing industry.

11(g) Definition.--As used in this section, the term "racing
12day" consists of a minimum of eight live races, except at
13thoroughbred tracks on Breeders' Cup Event Day.

14Section 235-A. Commingling.

15(a) Applicability.--This section is applicable only to
16licensed thoroughbred racing corporations.

17(b) Race secretary.--The race secretary shall receive
18entries and declarations as an agent for the licensed
19corporation for which the race secretary acts. The race
20secretary or an individual designated by the licensed
21corporation may receive stakes, forfeits, entrance money, jockey
22fees and other fees, purchase money in claiming races and other
23money that can properly come into the race secretary's
24possession as an agent for the licensed corporation for which
25the race secretary or designee is acting.

26(c) Horsemen's Account.--A licensed corporation shall
27maintain a separate account, called a Horsemen's Account. Money
28owed to owners in regard to purses, stakes, rewards, claims and
29deposits shall be deposited into the Horsemen's Account. Funds
30in the account are recognized and denominated as being the sole

1property of owners. Deposited funds may not be commingled with
2funds of the licensed corporation unless a licensed corporation
3established an irrevocable clean letter of credit with an 
4evergreen clause in favor of the organization which represents a 
5majority of the owners and trainers racing with the licensed 
6corporation. The minimum amount of the credit must be the
7greater of $1,000,000 or 110% of the highest monthly balance in
8the Horsemen's Account in the immediate prior year. To calculate
9the monthly balance in the Horsemen's Account, the sum of the
10daily balances shall be divided by the number of days in the
11month. The evergreen clause must provide that:

12(1) thirty days prior to the expiration of the letter of
13credit, the financial institution can elect not to renew the
14letter of credit;

15(2) upon an election under paragraph (1), the financial
16institution must notify the designee of the organization that
17represents a majority of the owners and trainers racing with
18the licensed corporation, by registered mail, return receipt
19requested, of the election not to renew; and

20(3) the financial institution will honor the letter of
21credit for six months after expiration.

22Purse money earned by owners shall be deposited by the licensed
23corporation in the Horsemen's Account within 48 hours after the
24result of the race in which the money was earned has been
25declared official and the purse has been released by the board.

26(d) Bookkeeper.--A licensed corporation shall designate a
27bookkeeper who is authorized to receive and disburse funds from
28the Horsemen's Account. The bookkeeper must be bonded to provide
29indemnity for malfeasance, nonfeasance and misfeasance. A
30certified copy of the bond shall be filed with the board.

1(e) Examination, access and records.--The Horsemen's Account
2and the investment and deposit schedules relating to the account
3are subject to examination, at reasonable times, by a designee
4of the organization which represents a majority of the owners
5and trainers racing with the licensed corporation and by the
6board. The bookkeeper shall provide each owner with access, at
7reasonable times during a racing day, to the amount of funds in
8the Horsemen's Account credited to that owner. At the close of a
9horse racing meeting, the bookkeeper shall mail to each owner a
10record of deposits, withdrawals and transfers affecting the
11amount of funds in the Horsemen's Account credited to that
12owner.

13(f) Auditing and monthly statements.--The Horsemen's Account
14shall be audited periodically as deemed appropriate by the
15board. There shall be at least one audit per year. Monthly
16statements shall be provided to the designee of the organization
17which represents a majority of the owners and trainers racing
18with the licensed corporation.

19(g) Interest.--Fifty percent of the money earned as interest
20on funds in the Horsemen's Account shall be paid to the
21organization that represents a majority of the owners and
22trainers racing with the licensed corporation on a weekly basis.
23The amount is for the benefit of the horsemen as determined by
24the organization that represents the majority of the owners and
25trainers racing with the licensed corporation. The remaining 50%
26of the interest earned is for the benefit of the licensed
27corporation that has the responsibility to fund the costs
28associated with the administration of the fund. Interest each
29month must be earned in an amount equal to the Federal Reserve
30Discount Rate on the first day of the month.

1Section 236-A. Harness horse racing purse money.

2A licensed harness horse racing association must place on
3deposit with the board by March 1 of each year an irrevocable
4letter of credit equivalent to its average weekly purse total
5from the immediate prior year. The board shall hold the letter
6of credit in trust for the harness horsemen racing at that
7licensed corporation if the purse checks are not issued or
8insufficient funds are available to cover the purse checks.

9Section 237-A. (Reserved).

10Section 238-A. Agricultural society horse racing.

11The Department of Agriculture shall have jurisdiction over
12and shall promulgate regulations for the proper administration
13of horse racing conducted by a county agricultural society or an
14independent agricultural society, as provided for under section
155(1)(iii) and (iv) of the act of July 8, 1986 (P.L.437, No.92),
16known as the Pennsylvania Agricultural Fair Act.

17Section 4. Section 301 of the act is amended to read:

18Section 301. Mandatory requirements for medication rules.

19(a) [The commissions shall have in effect at all times when]
20When a licensed corporation conducts a horse racing meeting with
21pari-mutuel wagering the board shall have in effect rules or
22regulations to control the use and administration of any
23medication and the use and administration of any device that
24affects the performance of a race horse. The [commissions] board
25may establish permitted tolerance levels and therapeutic dose
26allowances for all medication to be used or administered to a
27race horse.

28(b) The [commissions] board shall establish in their rules 
29or regulations penalty provisions for the violation of these 
30rules or regulations.

1Section 5. Section 302(a) and (c) of the act, amended May
216, 1986 (P.L.205, No.63), are amended to read:

3Section 302. Establishment of the Pennsylvania Race Horse
4Testing Program.

5(a) There is hereby established the Pennsylvania Race Horse
6Testing Program. The program shall be administered by [a
7management committee composed of the two chairpersons of the
8commissions, the Secretary of Agriculture and two persons
9appointed by the Governor. One person appointed by the Governor
10must be a doctor of veterinary medicine or a veterinary medical
11doctor and a member of the faculty of a school of veterinary
12medicine located within this Commonwealth and the other person
13must be employed within the private sector and have a background
14in biological and/or chemical laboratory management. The program
15is placed in and made a part of the Department of Agriculture]
16the board. All costs of the program shall be paid by the
17[commissions] fees collected under section 304. [Subject to all
18provisions of the act of April 9, 1929 (P.L.177, No.175), known
19as "The Administrative Code of 1929," that apply to the
20department, the management committee shall appoint and direct
21all personnel as necessary, establish a facility or contract for
22the provision of testing services, acquire all necessary
23equipment and supplies and adopt all necessary procedures.]

24* * *

25[(c) In order to evaluate the effectiveness of testing
26services performed by personnel of the Department of Agriculture
27and determine whether the manner in which these services are
28provided, the tests utilized and tolerance levels permitted
29should be modified, the commissions shall equally fund a
30contracted evaluation of existing laboratory services to be

1conducted by a nongovernmental entity with documented expertise
2to accurately evaluate existing laboratory services and
3formulate recommendations for improvement of the testing
4program. Upon review of the evaluation results, the department
5may implement in consultation with the management committee a
6program to improve laboratory services, including, if necessary
7and appropriate, the selection of a contractor or contractors to
8provide testing services. This study shall be completed on or
9before January 1, 1987, and copies provided to the Governor, the
10President pro tempore of the Senate, the Speaker of the House of
11Representatives and the members of the State Government
12Committees of the Senate and the House of Representatives within
1315 working days.]

14Section 6. Section 304 of the act is amended to read:

15Section 304. Costs of the enforcement of the medication rules
16or regulations.

17[All costs for the collection and testing samples for any 
18manner of medication shall be paid by the commissions.] The 
19board shall establish a fee schedule to be charged to horse 
20owners for costs of the collections and testing for any manner 
21of medication rules or regulation enforcement. The costs of 
22collections and testing shall include the equipment, supplies 
23and facilities, except holding barns or stables, to be located 
24at race horse meeting facilities, grounds or enclosures or at 
25other locations designated by the board, which shall be 
26published in the Pennsylvania Bulletin and shall be in effect 60 
27days after being published.

28Section 7. This act shall take effect in 60 days.