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. <-further 
9providing for definitions; repealing provisions related to 
10the State Horse Racing Commission and State Harness Racing 
11Commission; and providing for racing oversight.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

<-14Section 1. The definitions of "commissions,"
15"commissioners," "licensed corporations," "nonprimary location
16statement" and "racetrack enclosure" in section 102 of the act
17of December 17, 1981 (P.L.435, No.135), known as the Race Horse
18Industry Reform Act, amended or added May 16, 1986 (P.L.205,
19No.63) and November 30, 1988 (P.L.1090, No.127), are amended and
20the section is amended by adding definitions to read:

21Section 102. Definitions.

1The following words and phrases when used in this act shall
2have, unless the context clearly indicates otherwise, the
3meanings given to them in this section:

4"Advanced deposit wagering." A system whereby wagers are
5debited and payouts are credited to an advanced deposit account
6held by a racing association or other entity licensed by the
7board on behalf of a person.

8* * *

9"Board." The Pennsylvania Gaming Control Board.

10"Bureau." The Bureau of Horse Racing.

11* * *

12["Commissions." The State Horse Racing Commission and the
13State Harness Racing Commission.

14"Commissioners." The persons appointed by the Governor and
15confirmed by the Senate who serve on the State Horse Racing
16Commission or the State Harness Racing Commission and who
17administer the applicable provisions of this act.]

18* * *

19"Harness horse racing." The form of standardbred horse
20racing in which the horses participating are attached "in
21harnesses" to a sulky or other similar vehicle, at a specific
22gait, either a trot or pace, and that is being driven by a
23person.

24"Horse racing." Harness horse racing and thoroughbred horse
25racing.

26"Internet wagering." A legal wager placed or accepted in a
27state with respect to the outcome of a horse race taking place
28in the state or in another state, where lawful in each state
29involved, placed or transmitted by an individual in one state
30via telephone or other electronic media, including the Internet,

1and accepted by an off-track betting system in the state or in
2another state, as well as the combination of any pari-mutuel
3wagering pools.

4* * *

5"Licensed corporations." The corporations that have obtained
6a license from [either] the former State Horse Racing Commission
7[or the], the former State Harness Racing Commission or the
8board to conduct [thoroughbred or harness] horse race meetings
9[respectively] with pari-mutuel wagering.

10* * *

11"Nonprimary location statement." The written statement
12pursuant to this act submitted to the [appropriate commission]
13board by a licensed corporation planning to establish a
14nonprimary location.

15* * *

16"Racetrack enclosure." For purposes of this act, the term
17"racetrack enclosure," with respect to each licensed
18corporation, shall be deemed to include at least one primary
19racetrack location at which horse [race] racing meetings
20authorized to be held by the licensed corporation are conducted,
21and all primary, nonprimary, contiguous and noncontiguous
22locations of the licensed corporation which are specifically
23approved by the [appropriate commission] board for conducting
24the pari-mutuel system of wagering on the results of horse races
25held at such meetings or [race] racing meetings conducted by
26another licensed corporation or televised to such locations by
27simulcasting.

28* * *

29"Thoroughbred horse racing." The form of horse racing in
30which each participating horse is mounted by a jockey, is duly

1registered with The Jockey Club of New York and engages in races
2on the flat, which may include a steeplechase or hurdle race.

3"Totalisator." A computer system used to pool wagers, record 
4sales, calculate payoffs and display wagering data on a display 
5device that is located at a pari-mutuel facility or non-primary 
6location.

7Section 2. Chapter 2 of the act is repealed:

8[CHAPTER 2

9STATE HORSE RACING COMMISSION AND STATE HARNESS

10RACING COMMISSION

11Section 201. Establishment of the commissions.

12(a) The State Horse Racing Commission is hereby established
13as a departmental administrative commission within the
14Department of Agriculture. The commission shall have general
15jurisdiction over all pari-mutuel thoroughbred horse racing
16activities in the Commonwealth and the corporations engaged
17therein. For the purposes of this act, "thoroughbred horse
18racing" means that form of horse racing in which each
19participating horse is mounted by a jockey, is duly registered
20with the Jockey Club, New York, New York and engages in races on
21the flat. Thoroughbred horse racing may include a steeplechase
22or hurdle race. The commission shall consist of three members
23who shall be appointed by the Governor, by and with the advice
24and consent of the Senate. Each commissioner shall hold office
25for a term of three years and until a successor is qualified.

26(b) The State Harness Racing Commission is hereby
27established as a departmental administrative commission within
28the Department of Agriculture. The commission shall have general
29jurisdiction over all pari-mutuel harness racing activities in
30the Commonwealth and the corporations engaged therein. The

1commission shall consist of three members who shall be appointed
2by the Governor, by and with the advice and consent of the
3Senate. Each commissioner shall hold office for a term of three
4years and until a successor is qualified.

5(c) The commissioners shall be reimbursed for documented
6expenses incurred in the performance of their official duties.
7The commissioners shall be paid $150 per diem for performing
8their duties as directed by the Secretary of Agriculture. One of
9the commissioners for each commission shall be appointed by the
10Governor as chairperson. The commissioner appointed by the
11Governor as chairperson shall serve in that position at the
12pleasure of the Governor. The Secretary of Agriculture or his
13designee shall be a nonvoting ex officio member of the
14commissions. The commissions shall meet at least once a month
15and at other times as the Secretary of Agriculture or the
16commission chairperson deems necessary. Adequate public notice
17of the time and place of the meetings shall be given. A
18commissioner who fails to attend three consecutive meetings
19shall be subject to removal. A commissioner shall be excused
20from meetings due to illness or death of an immediate family
21member. All commissioners shall be licensed under the provisions
22of section 213.

23(d) Each commission shall engage an executive secretary,
24deputies, secretaries, officers and representatives as it may
25deem necessary, who shall serve during its pleasure. The
26commissions shall also engage other employees as they see fit
27and whose duties shall be prescribed by the commissions and
28whose compensation shall be fixed by the commissions within the
29appropriations available. Legal counsel for the commissions
30shall be appointed in accordance with the act of October 15,

11980 (P.L.950, No.164), known as the "Commonwealth Attorneys
2Act." Each commission shall be subject to the provisions of the
3act of April 9, 1929 (P.L.177, No.175), known as "The
4Administrative Code of 1929," as to classification and
5compensation for all its employees.

6(e) It shall be the duty of the executive secretary to keep
7a full and faithful record of the proceedings of the
8commissions, preserve at the general office of the commissions
9all books, maps, documents and papers entrusted to the executive
10secretary's care, prepare for service the papers and notices as
11may be required by the commissions and perform other duties as
12the commissions may prescribe. It shall be the duty of the
13executive secretary to keep, at the offices of the commissions,
14a docket setting forth the names of all stockholders in all
15corporations licensed under this act, the number of shares held
16by each stockholder and the date on which each shareholder
17acquired stock in the licensed corporation. The docket shall be
18open for public inspection. It shall be the duty of the
19executive secretary to appear before the Appropriations
20Committees of the Senate and the House of Representatives for
21budgetary review and recommendations.

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

1duties in accordance with the provisions of "The Administrative
2Code of 1929."

3(g) The terms and termination dates of the terms of the
4three commissioners who constitute the State Horse Racing
5Commission under the act of December 11, 1967 (P.L.707, No.331),
6referred to as the Pennsylvania Thoroughbred Horse Racing Law,
7shall continue under this act. Any commissioner whose term has
8already expired on the effective date of this act and who has
9not been replaced by a new member or has not been confirmed for
10another term, shall continue in his or her present status until
11replaced by a new member or confirmed for another term.

12(h) The terms and termination dates of the terms of the
13three commissioners who constitute the State Harness Racing
14Commission under the act of December 22, 1959 (P.L.1978,
15No.728), referred to as the Pennsylvania Harness Racing Law,
16shall continue under this act. Any commissioner whose term has
17already expired on the effective date of this section and who
18has not been replaced by a new member or has not been confirmed
19for another term, shall continue in his or her present status
20until replaced by a new member or confirmed for another term.

21(i) All rules and regulations promulgated under the
22provisions of the Pennsylvania Thoroughbred Horse Racing Law and
23the Pennsylvania Harness Racing Law shall remain in effect
24except to the extent that they are in direct conflict with the
25provisions of this act. The commissions may amend, revise or
26alter these rules and regulations as they deem necessary.

27(j) All licenses issued under the provisions of section 11
28of the Pennsylvania Thoroughbred Horse Racing Law and under the
29provisions of section 9 of the Pennsylvania Harness Racing Law,
30shall remain in effect for the remainder of the term for which

1these licenses were issued. After these licenses have expired,
2all renewals or new licenses shall be issued under the
3provisions of this act.

4(k) All licenses issued to corporations under the provisions
5of section 7 of the Pennsylvania Thoroughbred Horse Racing Law
6and under the provisions of section 7 of the Pennsylvania
7Harness Racing Law, shall continue with the same force and
8effect and shall be governed by the provisions of section 209.

9Section 202. General powers of the commissions.

10(a) The State Horse Racing Commission shall have the power
11to supervise all thoroughbred horse race meetings at which pari-
12mutuel wagering is conducted. The State Harness Racing
13Commission shall have the power to supervise all harness horse
14racing meetings at which pari-mutuel wagering is conducted. The
15commissions may adopt rules and regulations to effect the
16purposes and provisions of this act.

17(b) Without limiting the generality of the foregoing and in
18addition to its other powers:

19(1) Each commission shall have power to fix a minimum
20charge for admission to horse race meetings at which pari-
21mutuel wagering is conducted, but the minimum charge shall
22not be less than 50¢ for general admission, exclusive of
23taxes. The commissions shall have power to fix the charge for
24admission of soldiers, sailors and marines, in uniform, at
25one-half of the amount fixed for general admission, whether
26or not the one-half of the amount fixed is less than the
27minimum prescribed therein.

28(2) Each commission shall at all times have in effect
29rules and regulations as required under Chapter 3 regarding
30medication rules and enforcement provisions.

1(3) The rules of the commissions shall also provide that
2all winning pari-mutuel tickets must be presented for payment
3before April 1 of the year following the year of their
4purchase and failure to present the ticket within the
5prescribed period of time shall constitute a waiver of the
6right to participate in the award. After April 1 of the year
7following, all licensed corporations will forward to the
8State Treasurer through the Department of Revenue for credit
9to the State Racing Fund all funds so held for the uncashed
10tickets. Where it is shown to the satisfaction of the
11appropriate commission and the Department of Revenue, through
12substantiated and recorded data, that the reason for the
13pari-mutuel ticket or tickets being outstanding and unclaimed
14is loss, misplacement or theft within the confines and
15control of the pari-mutuel department of any licensed
16corporation and it is shown to the satisfaction of the
17appropriate commission and the Department of Revenue that the
18pari-mutuel ticket or tickets in question have been cashed by
19the pari-mutuel department, the Department of Revenue, with
20the approval of the appropriate commission, may adjust and
21credit the licensed corporation's outstanding ticket account
22accordingly on March 31 of the year following the year of
23purchase or after a complete audit of the outstanding tickets
24accounts have been performed. The licensed corporation shall
25reimburse any employee who has been held personally
26accountable and paid for the lost, misplaced or stolen
27tickets.

28(4) The commissions may adopt a general promotion
29program to assist the licensed corporations in increasing
30their attendance and average daily handle. Any expenditures

1for a promotional program shall be authorized and approved in
2the same manner as other operational costs of the
3commissions.

4(5) In the event that a state bordering Pennsylvania
5enacts a wagering tax scheme that may place Pennsylvania
6horse race meetings at a competitive disadvantage in the
7purses that can be offered for horse races, a licensed
8corporation may petition the appropriate commission for an
9emergency financial grant to augment its purse structure. If
10the appropriate commission finds that the effect of the
11enacted wagering tax scheme of a bordering state is to place
12Pennsylvania horse race meetings at a competitive
13disadvantage in purse structure, the appropriate commission
14shall make an emergency financial grant to the petitioning
15licensed corporation for augmentation to its purse structure
16out of moneys that the commission has budgeted for this
17purpose; provided, however, that the Secretary of Agriculture
18and the Secretary of the Office of Budget and Administration
19have also agreed to the grant.

20(c) The State Harness Racing Commission shall have
21jurisdiction over and shall promulgate regulations as necessary
22for the proper administration of all racing conducted by a
23county agricultural society or an independent agricultural
24society, as provided for under section 5(1)(iii) and (iv) of the
25act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania
26Agricultural Fair Act."

27Section 203.

28(c) No corporation shall have the right to conduct any horse
29race meet except on obtaining a license from the appropriate
30commission and at the location or locations designated in its

1license or any amendment thereto or as approved at any time by
2the commission as the place or places at which it was proposed
3to conduct its business. This restriction shall not apply to any
4corporation whose racing plant or usefulness, in the discretion
5of the appropriate commissions, shall, for any reason beyond the
6control of the corporation, be totally destroyed or so
7substantially interfered with as to render same unfit for
8continued operation. Pending the rebuilding or restoration of
9its usefulness, or the making of the required repairs to the
10plant or the part destroyed or damaged, the commissions may
11license such corporation to conduct its horse race meetings at
12any other suitable location.

13Section 204. Filing of information concerning stock transfers;
14necessity for commissions' approval.

15(a) Whenever a transfer of stock comprising an interest of
165% or more in any licensed corporation, or comprising an
17interest of 5% or more in any corporation which leases to a
18licensed corporation the track facility at which it conducts
19pari-mutuel horse races or comprising an interest of 5% or more
20in any corporation which owns 25% or more of the stock of the
21licensed corporation shall be made, there shall be filed,
22simultaneously, with the corporation which issued such stock the
23following:

24(1) In duplicate, an affidavit executed by the
25transferee of the interest stating that he is to be the sole
26beneficial owner thereof, and whether or not he:

27(i) has been convicted of a crime involving moral
28turpitude;

29(ii) has been engaged in bookmaking or other forms
30of illegal gambling;

1(iii) has been found guilty of any fraud or
2misrepresentation in connection with racing or breeding;

3(iv) has been guilty of any violation or attempt to
4violate any law, rule or regulation of any racing
5jurisdiction, for which suspension from racing might be
6imposed in such jurisdiction; or

7(v) has violated any rule, regulation or order of
8the commissions.

9If the transferee of the interest is not, or is not to be,
10the sole beneficial owner, there shall be annexed to the
11affidavit of the transferee, and expressly stated in such
12affidavit, a true and complete copy of all terms of the
13agreement pursuant to which the interest in the corporation
14is to be held by the transferee, including a detailed
15statement of the interest of each person who is to have any
16interest therein.

17(2) In duplicate, an affidavit executed by each person
18for whom the interest is to be held by the transferee,
19setting forth whether or not the affiant:

20(i) has been convicted of a crime involving moral
21turpitude;

22(ii) has engaged in bookmaking or other forms of
23illegal gambling;

24(iii) has been found guilty of any fraud or
25misrepresentation in connection with racing or breeding;

26(iv) has been guilty of any violation or attempt to
27violate any law, rule or regulation of any racing
28jurisdiction, for which suspension from racing might be
29imposed in such jurisdiction; or

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

1the commissions.

2To each of the affidavits shall be annexed, and expressly
3stated in such affidavit, a true and complete copy of all the
4terms of the agreement pursuant to which the interest is to
5be held by the transferee, including a detailed statement of
6the interest of each person who is to have any interest
7therein. The corporation shall file with the appropriate
8commission one of each duplicate affidavits.

9(b) If, after the filing of any affidavit required to be
10filed, there shall be any change in the status of any affiant
11with respect to any of the matters set forth in subsection (a)
12(1) of the affidavit filed, the affiant shall file with the
13corporation with which his affidavit was so filed a new
14affidavit, executed by him in duplicate, setting forth the
15change of status and the corporation shall file one of these
16affidavits with the appropriate commission.

17(c) Whenever any change shall be made in the amount, nature
18or of the interest of any person having an interest of 5% or
19more in any corporation, or any new interest of 5% or more shall
20be created therein, without a transfer as provided, the record
21owner of the stock, and each person whose interest has been
22attempted to be changed or created, shall file with the
23corporation which issued the stock, in duplicate, affidavits as
24provided by subsection (a)(1) and (2), except that these
25affidavits need not include the matter referred to in subsection
26(a) unless then required pursuant to subsection (b) and one copy
27thereof shall be filed by the corporation with the appropriate
28commission.

29(d) If the appropriate commission determines that it is
30inconsistent with the public interest, convenience, or

1necessity, or with the best interest of racing generally, that
2any person continue to be a stockholder of record, or the
3beneficial owner of any interest in stock standing in the name
4of another in any licensed corporation or of any corporation
5which leases to such licensed corporation the track at which it
6conducts pari-mutuel horse racing or which owned 25% or more of
7the stock of the licensee, the appropriate commission shall have
8full power and authority to order each stockholder or beneficial
9owner to dispose of his stock or interest within a period of
10time to be specified by the appropriate commission, which period
11the appropriate commission shall have full power to extend.

12(e) If the commissions shall make any order or direction as
13provided in subsection (d), the person aggrieved shall be given
14notice of the time and place of a hearing before the appropriate
15commission, at which time the appropriate commission will hear
16the person in reference thereto.

17Section 205. Number of horse racing corporations.

18(a) No more than six corporations shall be licensed by the
19State Horse Racing Commission to conduct a pari-mutuel meet or
20meets. No corporation licensed under this act to conduct harness
21racing with pari-mutuel wagering or under the act of December
2222, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
23Harness Racing Law, shall be licensed to conduct thoroughbred
24horse racing with pari-mutuel wagering.

25(b) No more than five corporations shall be licensed by the
26State Harness Racing Commission to conduct a pari-mutuel meet or
27meets. No corporation licensed under this act to conduct
28thoroughbred horse racing with pari-mutuel wagering or under the
29act of December 11, 1967 (P.L.707, No.331), referred to as the
30Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to

1conduct harness horse racing with pari-mutuel wagering.

2Section 206. Responsibilities of the Department of Revenue.

3The Department of Revenue is charged with the financial
4administration of pari-mutuel wagering under this act, as
5supplemented by the rules and regulations of the commissions.
6The Department of Revenue shall have authority to prescribe the
7forms and the system of accounting to be employed, and through
8its representatives shall, at all times, have power of access
9to, and examination of, any equipment relating to such wagering.

10Section 207. Allocation of racing days.

11(a) Up to 125 but no less than 25 racing days shall be
12allocated to each licensed corporation conducting thoroughbred
13horse race meetings in any calendar year; except, that upon
14request, the State Horse Racing Commission may grant up to an
15additional 25 racing days over the 125 days to a licensed
16corporation in each calendar year, if racing meet schedules can
17accommodate these extra days. Whenever two or more corporations
18licensed to conduct racing at the same facility apply to the
19State Horse Racing Commission for an allocation of racing days
20at the same facility, the commission shall allocate the racing
21days in the following manner:

22(1) If there is an agreement between the licensed
23corporations as to the allocation of racing days then as
24provided for therein.

25(2) If there is no agreement between the licensed
26corporations as to the allocation of racing days, then
27equally between them.

28(b) No more than 125 racing days shall be allocated to each
29licensed corporation conducting harness horse race meetings in
30any calendar year. Every corporation shall hold its license

1under the provisions of section 209. The State Harness Racing
2Commission shall allocate the racing days in accordance with the
3following guidelines:

4(1) A licensed corporation that has an ownership
5interest in the facility at which the racing days are to be
6conducted shall be granted up to 125 racing days in any
7calendar year upon request to the State Harness Racing
8Commission. The State Harness Racing Commission shall grant
9all racing days requested by licensed corporations described
10in this paragraph before any other racing days are granted to
11any other licensed corporation that desires to conduct a meet
12at the same facility owned in part or in whole by a licensed
13corporation that also desires to conduct a meet there.

14(2) Whenever one or more licensed corporations that have
15an ownership interest in the facility at which the racing
16days are to be conducted apply to the State Harness Racing
17Commission for an allocation of racing days, the State
18Harness Racing Commission shall allocate an equal number of
19racing days to each licensed corporation or to each licensed
20corporation based upon an agreement between the licensed
21corporations as to the allocation of racing days.

22(3) Upon request the State Harness Racing Commission may
23grant up to an additional 25 racing days over the 125 racing
24days to a licensed corporation in each calendar year, and the
25commission may grant up to 50 additional days of racing if
26that corporation is the only corporation operating at the
27facility, if racing meet schedules can accommodate these
28extra racing days.

29(4) For purposes of this section, an ownership interest
30shall mean that a licensed corporation directly or through a

1parent or subsidiary has at least 35% equity interest in the
2track facility at which it conducts harness horse race
3meetings or is the primary tenant at such facility. For
4purposes of this subsection, a primary tenant shall be that
5licensed corporation, if any, which is a tenant conducting
6horse race meetings at a track facility at which no licensed
7corporation conducting horse race meetings has directly or
8through a parent or subsidiary at least a 35% equity interest
9in such facility, and if there is more than one such tenant
10at any such facility during the year prior to the year for
11which dates are requested, then among or between such tenants
12the primary tenant, if any, shall be designated by agreement
13among or between those licensed corporations which propose to
14conduct horse race meetings at the said track facility during
15the year for which dates are requested.

16(c) The commissions shall certify to the Secretary of the
17Department of Revenue within 20 days after the allocation of
18racing days to licensed corporations the following information:

19(1) the names and addresses of the corporations;

20(2) the names and addresses of the presidents and
21general managers of the corporations;

22(3) the names and locations of the facilities where the
23racing days are to be conducted;

24(4) the number of racing days allocated to each
25corporation; and

26(5) a numbered list of each racing day assigned to each
27calendar day of the year for the purposes of taxation.

28(d) If a racing day is cancelled by a licensed corporation
29for reasons beyond its control, the appropriate commission shall
30grant the licensed corporation the right to conduct that racing

1day in the same or the next ensuing calendar year, if schedules
2permit. The racing day for purposes of taxation under section
3222 shall be at the lowest tax rate at which the licensed
4corporation conducted a racing day during that year.

5Section 208. State admissions taxes.

6(a) Every corporation holding a thoroughbred horse race
7meeting under this act shall collect, in addition to the
8admission price of tickets sold or otherwise disposed of, for
9each meeting held by the corporation, a tax equivalent to 15% of
10the admission price, or 15¢ whichever is greater. In case of
11failure to collect the tax, the tax shall be imposed upon the
12corporation holding the race meeting. The tax shall be paid to
13the Department of Revenue within ten days of collection. The
14amounts collected shall be paid into the State Treasury to the
15credit of the State Racing Fund. Before any corporation liable
16to pay the tax shall hold any race meeting, or exercise any of
17the powers conferred by this act, the corporation shall pay all
18taxes due, and shall file a statement with the Department of
19Revenue containing the name of the place and stating the time
20when the races are to be held. Nothing in this section shall
21apply to a race meeting conducted by any state, county or other
22agricultural association. Retroactive to September 1, 1981 and
23thereafter, the admission tax shall be decreased to a tax
24equivalent to 10% of the admission price. Then on September 1,
251982 and thereafter, the admission tax shall be decreased to a
26tax equivalent to 5% of the admission price.

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

1case of failure to collect the tax, the tax shall be imposed
2upon the corporation holding the race meeting. The tax shall be
3paid to the Department of Revenue within ten days after the
4close of each race meeting. The amounts collected shall be paid
5into the State Treasury to the credit of the State Racing Fund.
6Before any corporation liable to pay the tax shall hold any race
7meeting, or exercise any of the powers conferred by this act,
8the corporation shall pay all taxes due and file a statement
9with the Department of Revenue containing the name of the place
10and stating the time when the races are to be held. Nothing in
11this section shall apply to a race meeting conducted by any
12state, county or other agricultural association.

13(c) The Department of Revenue shall have the power to
14examine the books and records of the corporation conducting any
15horse race meeting and may hear testimony and take proofs and
16material for its information, or from any other data which shall
17be satisfactory to it. The Department of Revenue may order and
18state an account for the tax due the State, together with the
19expense of such examination. A penalty of 5% and interest at the
20rate of 1% per month from the due date to the date of payment of
21the tax shall be payable in case any tax imposed by this section
22is not paid when due.

23Section 209. Licenses for horse race meetings.

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

1be served and a proper case for the issuance of the license is
2shown, the appropriate commission may issue the license. The
3license shall remain in effect so long as the licensed
4corporation complies with all conditions, rules and regulations
5and provisions of this act. A commission may revoke or suspend
6the license of any corporation, if the commission finds by a
7preponderance of the evidence that the corporation, its
8officers, employees or agents, has not complied with the
9conditions, rules, regulations and provisions of this act and
10that it would be in the public interest, convenience or
11necessity to revoke or suspend the license. A license is not
12transferable.

13(b) Every license shall be issued upon the following
14conditions:

15(1) A horse race meeting at which pari-mutuel wagering
16is conducted is subject to the supervision of and to the
17reasonable rules and regulations prescribed by the
18appropriate commission.

19(2) Pari-mutuel wagering conducted is also subject to
20the supervision of and to the reasonable regulations
21prescribed by the Department of Revenue. Any license may also
22be issued upon any other condition that the appropriate
23commission determines to be necessary or desirable to insure
24that the public interest, convenience or necessity is served.

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

1corporation directly or through a parent or subsidiary has at
2least a 35% equity interest in the track facility at which it
3conducts horse race meetings or is the primary tenant at such
4facility. For purposes of this paragraph, a primary tenant
5shall be that licensed corporation, if any, which is a tenant
6conducting horse racing meetings at a track facility at which
7no licensed corporation conducting horse race meetings has
8directly or through a parent or subsidiary at least a 35%
9equity interest in such facility, and if there is more than
10one such tenant at any such facility during the year prior to
11the year for which dates are requested, then among or between
12such tenants the primary tenant, if any, shall be designated
13by agreement among or between those licensed corporations
14which propose to conduct horse race meetings at the said
15track facility during the year for which dates are requested.

16(4) The corporation posts, in favor of the appropriate
17commission, a bond or irrevocable letter of credit in an
18amount equal to the sum of the corporation's average weekly
19payment, during active racing, into the State Racing Fund, as
20determined by the appropriate commission on the basis of the
21immediately preceding year, during the year for which dates
22are requested.

23(5) The licensed corporation prints in its racing
24programs the procedure for filing a complaint with the
25appropriate commission.

26(c) Applications for licenses shall be in the form
27prescribed by the appropriate commission and shall contain
28information, material or evidence as the appropriate commission
29may require. The term "racing week" shall include Sunday at the
30discretion of the licensed corporation.

1(d) In considering an application for a license to a
2corporation, the commissions may give consideration to the
3number of licenses already granted. No license shall be granted
4to any track located within ten miles of a State, county or
5other political subdivision fair conducting horse racing unless
6the association, corporation, society, political subdivision or
7State agency conducting the fair shall affirmatively waive
8objection to the issuance of the license for dates within the
9period.

10(e) The commissions may refuse to grant, may revoke, or may
11suspend a license to a corporation, if it shall determine that:

12(1) Any officer, director, member or stockholder of the
13corporation applying for a license or of any corporation
14which owns stock in or shares in the profits, or participates
15in the management of the affairs of the applicant, or which
16leases to the applicant the track where it shall operate:

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

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

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

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

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

29(2) The experience, character or fitness of any officer,
30director or stockholder of any of the corporations is such

1that the participation of the person in horse racing or
2related activities would be inconsistent with the public
3interest, convenience or necessity or with the best interests
4of racing. If the commission determines that the interest of
5any stockholder referred to in this paragraph or in paragraph
6(1) is insufficient to affect adversely the conduct of pari-
7mutuel horse racing by the corporation in accordance with the
8provisions of this act, the commissions may disregard the
9interest in determining whether or not to grant a license to
10the corporation.

11(3) The applicant is not the owner or the lessee of the
12track at which it will conduct pari-mutuel horse racing under
13the license applied for, or that any person, firm,
14association or corporation other than the applicant shares,
15or will share, in the profits of the applicant, other than by
16dividends as a stockholder, or participates, or will
17participate in the management of the affairs of the
18applicant.

19(4) The corporation does not have the use of a facility
20to conduct horse race meetings. Such use must be proved by a
21preponderance of the evidence. The proof may be demonstrated
22by documentation of an ownership interest in the facility or
23by a written lease for use of the facility.

24(5) A licensed corporation does not have proof of a
25written lease of a facility to conduct horse race meetings.
26Under this paragraph, the appropriate commission may suspend
27a license for a period of two years. After the expiration of
28the suspension, the appropriate commission may then revoke
29the license, if the licensed corporation has failed to
30contract for a facility at which to conduct horse race

1meetings.

2(6) A licensed corporation has commingled horsemen's
3funds in violation of section 235(c) or has refused to place
4on deposit a letter of credit under section 236.

5(f) The commissions shall also have power to refuse to
6grant, revoke or suspend a license:

7(1) To any corporation, the charter or certificate of
8incorporation of which shall fail to contain a provision
9requiring any stockholder, upon written demand of the
10corporation, to sell his stock to the corporation at a price
11to be fixed by the appropriate commission, provided the
12demand be made pursuant to written direction of the
13appropriate commission and from the date of the making of the
14demand prohibiting the transfer of the certificate of stock
15except to the corporation.

16(2) To any corporation which, having been a licensee,
17has failed, in the opinion of the appropriate commission, to
18properly maintain its track and plant in good condition or
19has failed to make adequate provision for rehabilitation and
20capital improvements to its track and plant.

21(g) Pending final determination of any question under this
22section, the commissions may issue a temporary license upon such
23terms and conditions as they see fit to effectuate the
24provisions of this act.

25(h) The commissions shall have power to direct that every
26certificate of stock of a licensed corporation shall bear a
27legend, plainly and prominently imprinted upon the face of the
28certificate, reading: "This certificate of stock is transferable
29only subject to the provisions of the 'Race Horse Industry
30Reform Act'." The provisions of this subsection shall not apply

1to stock heretofore issued by a licensed corporation under the
2provisions of the act of December 11, 1967 (P.L.707, No.331), as
3amended, and referred to as the Pennsylvania Thoroughbred Horse
4Racing Law or of the act of December 22, 1959 (P.L.1978,
5No.728), as amended, and referred to as the Pennsylvania Harness
6Racing Law.

7Section 210. Shareholders.

8(a) Each licensed corporation shall, once a year, provide
9the appropriate commission with a complete list of all its
10shareholders, indicating the number of shares by each
11shareholder.

12(b) It shall be the duty of each licensed corporation within
13ten days after any transfer of stock comprising an interest of
145% or more in such licensee, to notify the appropriate
15commission of the transfer.

16(c) Each certificate of stock issued by a licensed
17corporation to a shareholder having a 5% or greater interest
18shall have noted on the face thereof that the person whose name
19is indicated as the owner of such shares of stock by the
20certificate is the sole and absolute owner, and that he is not
21holding such shares of stock or any portion of such shares of
22stock represented by the certificate in trust for any person,
23partnership, firm or corporation who or which is prohibited from
24owning such shares of stock. If any of such shares of stock
25represented by a certificate of stock are held subject to the
26terms of either an inter vivos or testamentary trust for the
27benefit of any person who could lawfully own such stock in his
28own name, the fact shall be noted on the face of the certificate
29and a copy of the instrument which created the trust shall be
30attached. A duplicate copy of the instrument which created the

1trust shall be filed with the appropriate commission.

2(d) No property rights shall exist in any shares of stock of
3any licensed corporation which are held in trust contrary to the
4provisions of this section and the same shall be forfeited to
5the Commonwealth after reasonable notice and upon hearing and
6proof thereof in any suit instituted by the Attorney General of
7Pennsylvania. Upon it being established that the stock is
8subject to forfeiture by legal adjudication, the appropriate
9commission shall sell the forfeited stock at public sale, upon
10proper notice, to the highest bidder. The proceeds from the sale
11shall be deposited in the General Fund of the Commonwealth of
12Pennsylvania.

13(e) As used in this section, the term "licensed corporation"
14shall include any licensed corporation as defined in section 102
15and also any firm, association or corporation which owns or
16leases to any licensed association or corporation a race track
17at which pari-mutuel racing is conducted, or any firm,
18association or corporation which participates in the management
19of any such licensed corporation.

20Section 211. Prohibition of interest by public officers, public
21employees and party officers in pari-mutuel racing
22activities.

23(a) No public officer, public employee or party officer
24shall:

25(1) hold any license to conduct a pari-mutuel meet from
26the commissions;

27(2) own or hold, directly or indirectly, any proprietary
28interest, stock or obligation of any firm, association or
29corporation:

30(i) which is licensed by the commissions to conduct

1pari-mutuel racing;

2(ii) which is licensed to conduct its occupation,
3trade or business at race tracks at which pari-mutuel
4race meets are conducted;

5(iii) which owns or leases to any licensed
6association or corporation a race track at which pari-
7mutuel racing is conducted; or

8(iv) which participates in the management of any
9licensed corporation conducting pari-mutuel racing; and

10(3) hold any office or employment with any firm,
11association or corporation specified in paragraph (2); or

12(4) sell or be a member of a firm or own 10% or more of
13the stock of any corporation which sells any goods or
14services to any firm, association or corporation specified in
15paragraph (2).

16The provisions of paragraph (3) shall not apply to a public
17employee other than a police officer or paid employee of a
18police department, sheriff's office, district attorney's office
19or other law enforcement agency so long as such employment of
20employees of a political subdivision may be prohibited by
21ordinance, resolution or local law.

22(b) A knowing and willful violation of this section shall be
23cause for removal from public office, public employment or party
24office. In any such case, the public officer, public employee or
25party officer, violating this section, shall be removed from
26office by appropriate authority having the power of removal.

27(c) The following words and phrases when used in this act
28shall have, unless the context clearly indicates otherwise, the
29meanings given to them in this section:

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

1political party:

2(1) a member of a national committee;

3(2) a chairman, vice-chairman, secretary, treasurer or
4counsel of a State committee or member of the executive
5committee of a State committee;

6(3) a county chairman, vice-chairman, counsel, secretary
7or treasurer of a county committee; or

8(4) a city chairman, vice-chairman, counsel, secretary
9or treasurer of a city committee.

10"Public employee." Every person employed by the Commonwealth
11or any political subdivision thereof.

12"Public officer." Every person elected to any public office
13of the Commonwealth or any political subdivision thereof.

14(d) The commissions shall have the power to refuse to grant
15or to revoke or suspend a license of any firm, association or
16corporation which aids or knowingly permits or conspires to
17permit any public officer, public employee or party officer to
18acquire or retain any interest prohibited by this section.

19(e) The provisions of this section shall allow any person
20other than members, employees or appointees of the commissions
21to own and to be licensed to race a horse at any licensed race
22track.

23Section 212. Officials at horse race meetings.

24(a) At all thoroughbred horse race meetings licensed by the
25State Horse Racing Commission, qualified judges and starters
26shall be approved by the commission. These officials shall
27enforce the rules and regulations of the State Horse Racing
28Commission and shall render written reports of the activities
29and conduct of such race meetings to the State Horse Racing
30Commission. The compensation of these judges and starters shall

1be paid by the corporation conducting the race meeting.

2(b) At all harness race meetings licensed by the State
3Harness Racing Commission, qualified judges and starters shall
4be approved by the commission. No person shall be approved as a
5judge or starter unless he is licensed by the United States
6Trotting Association as a duly qualified pari-mutuel race
7meeting official. The officials shall enforce the rules and
8regulations of the State Harness Racing Commission and shall
9render regular written reports of the activities and conduct of
10the race meetings to the State Harness Racing Commission. The
11compensation of the presiding judge and two associate judges at
12each race track shall be fixed and paid by the State Harness
13Racing Commission. The commission shall adopt a selection
14process to approve the appointment of these officials. The
15licensed corporations shall participate in this selection
16process for approval of these officials.

17Section 213. Licenses for commissioners, employees and
18participants at horse race meetings.

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

1the State Racing Fund. The application shall be in the form and
2contain the information as each commission may require.
3Applicants must have their fingerprints taken or have
4fingerprint records on file with the respective commission, the
5Federal Bureau of Investigation, the State Police or any other
6organization recognized by the respective commission as part of
7the background investigation. Each commission may exempt
8applicants from the fingerprint requirement for positions not
9related to the care or training of horses, racing, wagering,
10security or the management operations of the racing corporation
11or racetrack. All licenses shall be issued for three-year terms
12and shall be automatically renewed, upon payment of the required
13fee, unless subsection (f) applies. Each commission may
14establish a temporary license and fee valid for four months
15within a twelve-month period. No applicant, however, may receive
16more than one temporary license within 12 months of the issuance
17of his or her preceding temporary license. The commissions may
18also stagger the termination dates and renewal dates of the
19licenses, in order to process and issue the licenses in an
20orderly manner that provides for approximately one-third of the
21licenses to be renewed each year. The commissions shall fix the
22manner by which licenses are processed and issued by rule or
23regulation.

24(b) All commissioners and all employees, agents and
25representatives of the commissions shall be licensed under this
26act. There shall be no fee for this license. The commissions
27shall fix by rule or regulation the manner in which these
28licenses under this subsection shall be processed and issued.

29(c) If the commissions find that the experience, character
30and general fitness of the applicant are such that the

1participation of the person in horse race meets is consistent
2with the public interest, convenience and necessity, and with
3the best interests of racing generally in conformity with the
4purposes of this act, it may grant a license.

5(d) The commissions may refuse to issue a license under this
6section, if they shall find that the applicant:

7(1) Has been convicted of a crime involving moral
8turpitude.

9(2) Has engaged in bookmaking or other form of illegal
10gambling.

11(3) Has been found guilty of any fraud or
12misrepresentation in connection with racing or breeding.

13(4) Has been found guilty of any violation or attempt to
14violate any law, rule or regulation of racing in any
15jurisdiction, for which suspension from racing might be
16imposed in that jurisdiction.

17(5) Has violated any rule, regulation or order of the
18commissions.

19(d.1) The commissions shall refuse to issue a license under
20this section if they shall find that the applicant has been
21convicted of an offense relating to fixing races. This
22subsection shall not apply if the conviction is overturned on
23appeal under the laws of the jurisdiction of the original
24finding.

25(e) Each commission shall have the right to inspect all
26contracts between licensed corporations and vendors for goods
27and services. Each commission shall require by rule or
28regulation that vendors disclose to the appropriate commission
29all principal officers and a description of their interests in
30the vendors' business. Failure to properly disclose this

1information shall constitute grounds to deny, to revoke or to
2suspend any vendor's license issued under the provisions of this
3act.

4(f) The commissions may suspend, refuse to renew or revoke a
5license issued under this section, if it shall determine that:

6(1) The applicant or licensee:

7(i) has been convicted of a crime involving moral
8turpitude;

9(ii) has engaged in bookmaking or other form of
10illegal gambling;

11(iii) has been found guilty of any fraud in
12connection with racing or breeding;

13(iv) has been guilty of any violation or attempt to
14violate any law, rule or regulation of any racing
15jurisdiction for which suspension from racing might be
16imposed in that jurisdiction;

17(v) has violated any rule, regulation or order of
18the commissions; or

19(vi) has been convicted of a felony offense related
20to the use, possession or sale of drugs or alcohol.

21(2) That the experience, character or general fitness of
22any applicant or licensee is such that the participation of
23the person in horse racing or related activities would be
24inconsistent with the public interest, convenience or
25necessity or with the best interests of racing.

26(f.1) The commissions shall suspend, refuse to renew or
27revoke a license issued under this section if it shall determine
28that the applicant or licensee has been convicted of an offense
29related to fixing races unless the conviction has been
30overturned on appeal under the laws of the jurisdiction of the

1original finding.

2(g) Pending final determination of any question under this
3section, the commissions may issue a temporary license upon such
4terms and conditions as they may deem necessary or proper to
5effectuate the provisions of this act.

6(h) The commissions may suspend a license under subsection
7(f) pending a hearing on the matter. The hearing must take place
8within ten days of the suspension.

9(i) The commissions shall not grant licenses to citizens of
10states that do not grant licenses to citizens of this
11Commonwealth on the basis of in-state preference.

12Section 214. Power of commissions to impose fines and
13penalties.

14(a) In addition to their power to suspend or revoke licenses
15granted by them, the commissions are authorized and empowered to
16impose fines upon any corporation, association or person
17participating in any way in any horse race meet at which pari-
18mutuel wagering is conducted, other than as a patron and whether
19licensed by the commissions or not, for a violation of any
20provision of this act or the rules and regulations promulgated
21by the commissions, not exceeding $5,000 for each violation,
22which fines shall be paid into the State Treasury through the
23Department of Revenue and credited to the General Fund.
24Following exhaustion of any administrative remedies promulgated
25by the commissions for such purpose, the action of the
26commissions in imposing any monetary fine shall be subject to
27appeal to the Commonwealth Court and as approved by that court
28system, or if no court appeal is taken, then as imposed, may be
29collected in an action of assumpsit.

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

1their spouses, parents, fathers-in-law, mothers-in-law, sons,
2daughters, sons-in-law or daughters-in-law shall have any direct
3or indirect interest in a race horse that is participating in a
4race at a meet at which such person or heretofore-mentioned
5relative holds any interest in the licensed corporation
6conducting the meet and/or the track facility. An officer or
7employee of a licensed corporation or their spouses, parents,
8fathers-in-law, mothers-in-law, sons, daughters, sons-in-law or
9daughters-in-law may have an interest in a race horse and enter
10it at meets that are conducted by licensed corporations or at
11race tracks in which such a person or heretofore-mentioned
12relative holds no direct or indirect interest. Each commission
13shall impose a fine or penalty upon any person for violation of
14this subsection as provided for under subsection (a). For
15purposes of this subsection an interest shall not include:

16(1) any breeder's fund award as a result of a horse
17being a registered Pennsylvania-bred thoroughbred horse under
18the provisions of section 223; and

19(2) any interest in a licensed corporation or track
20facility that was held by a person, partnership, association
21or corporation on or before January 1, 1988.

22Section 215. Security personnel; powers and duties; penalty.

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

1promulgated by the commissions. The commissions may refuse
2admission to and eject from enclosure of the race track operated
3by any licensed corporation, any person whose presence there is,
4in the judgment of the commission, inconsistent with the orderly
5or proper conduct of a race meeting or whose presence or conduct
6is deemed detrimental to the best interest of horse racing. The
7action of the commissions in refusing any person admission, or
8ejecting him from, a race meeting ground or enclosure shall not
9be because of the race, creed, color, sex, national origin or
10religion of that person and shall be reviewable by the
11Commonwealth Court.

12(b) Except as provided for in subsections (c) and (d), any
13licensed corporation may refuse admission to and eject from the
14enclosure of the race track operated by any association any
15person except that no person shall be refused admission or be
16ejected because of the race, color, creed, sex, national origin
17or religion of that person.

18(c) A licensed corporation may refuse admission to and eject
19from the enclosure of the race track operated by the
20corporation, any person licensed by the commissions under
21section 213, employed at his occupation at the race track, whose
22presence there is deemed detrimental to the best interests of
23horse racing, citing the reasons for that determination. The
24action of the corporation in refusing the person admission to or
25ejecting him from a race meeting ground or enclosure shall have
26immediate effect. The person refused admission or ejected shall
27receive a hearing before the appropriate commission, if
28requested, pursuant to rules and regulations adopted for that
29purpose by the appropriate commission and a decision rendered
30following that hearing.

1(d) A licensed corporation may not refuse admission to or
2eject a law enforcement official while that official is actually
3engaged in the performance of official duties.

4(e) A person found within a race track enclosure after
5having been refused admission thereto or ejected therefrom
6shall, upon conviction thereof in a summary proceeding, be
7sentenced to pay a fine not exceeding $300 or undergo
8imprisonment for a term not exceeding 90 days, or both.

9Section 216. Interstate simulcastings of horse races.

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

1Commonwealth shall also comply with the provisions of the
2Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001
3et seq. All forms of pari-mutuel wagering as described under
4section 221 shall be allowed on horse races to be televised by
5simulcasting. Each commission may promulgate rules or
6regulations to regulate the wagering and the operation of these
7horse races. All moneys wagered by patrons on these horse races
8shall be computed in the amount of money wagered each racing day
9for purposes of taxation under section 222.

10Section 216.1. Televised international and interstate
11simulcastings of horse races.

12(a) Each commission may, upon request by a licensed
13corporation, grant permission to maintain common pari-mutuel
14pools on international and interstate races transmitted to and
15from the racetrack enclosures within this Commonwealth, such
16licensed corporation to be designated as the "host licensee."
17The permission to act as host licensee for international and
18interstate simulcast races shall be limited to licensed
19corporations:

20(1) which have a live racing agreement with a horsemen's
21organization representing a majority of owners and trainers
22at the facility where the licensed corporation conducts
23racing dates;

24(2) which have scheduled 95% of the total number of
25horse or harness racing days scheduled in 1986 by it or its
26predecessor at the facility where the licensed corporation
27conducts racing dates; and

28(3) which, subject to actions or activities beyond the
29control of the licensee, conduct not less than eight live
30races per race date during each meet at the facility where

1the licensed corporation conducts racing dates, except for
2thoroughbred tracks on the day designated as Breeder's Cup
3Event Day, when the facility shall hold a minimum of five
4live races.

5A horsemen's organization representing a majority of owners and
6trainers at a racetrack may consent to waiving or modifying the
7provisions pertaining to the required number of racing days and
8races per day scheduled by a licensed corporation at that
9racetrack.

10(b) Cross simulcasting of the races described in subsection
11(a) shall be permitted if all amounts wagered on the races in
12this Commonwealth are included in common pari-mutuel pools. A
13host licensee seeking permission to cross simulcast must obtain
14approval from both the State Harness Racing Commission and the
15State Horse Racing Commission. All simulcasts of horse races
16shall also comply with the provisions of the Interstate Horse
17Racing Act of 1978 (92 Stat. 1811, 15 U.S.C. § 3001 et seq.).
18All forms of pari-mutuel wagering as described under section 221
19shall be allowed on horse races to be televised by simulcasting.
20Each commission may permit pari-mutuel pools in this
21Commonwealth to be combined with pari-mutuel pools created under
22the laws of another jurisdiction and may permit pari-mutuel
23pools created under the laws of another jurisdiction to be
24combined with pari-mutuel pools in this Commonwealth. Each
25commission may promulgate rules or regulations to regulate
26wagering on televised simulcasts.

27(c) All moneys wagered by patrons in this Commonwealth on
28these horse races shall be computed in the amount of money
29wagered each racing day for purposes of taxation under section
30222 and all thoroughbred races shall be considered a part of a

1thoroughbred horse race meeting and all harness races shall be
2considered a part of a harness horse race meeting for purposes
3of section 222(b)(5).

4Section 217. Refunds.

5(a) Money received by the commissions may, within one year
6from receipts thereof, be refunded, to the party for whose
7account the same were received, on proof satisfactory to the
8commissions that:

9(1) the moneys were in excess of the amount required by
10law;

11(2) the license for which application was made has been
12refused by the commission;

13(3) the moneys were received as a fine and the
14commission has, after review, reduced the amount of the fine;
15or

16(4) upon appeal, the court reduced or remitted the fine
17imposed and paid.

18(b) Refunds shall, upon approval by the commission and after
19approval by the Board of Finance and Revenue, be paid from any
20moneys in the State Racing Fund.

21Section 218. Place and manner of conducting pari-mutuel
22wagering.

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

1ticket, straight, place or show on the first three horses in the
2race; the elapsed time of the race; the value of a winning daily
3double ticket, if a daily double be conducted, and any other
4information that the commissions may deem necessary for the
5guidance of the general public. The commissions may prescribe,
6by rule, the type and kind of equipment to be used for the
7display of the foregoing information.

8(b) Each commission may upon request by any licensed
9corporation grant permission to the licensed corporation to
10conduct a telephone account wagering system: Provided, however,
11That all telephone messages to place wagers must be to a place
12within the race track enclosure: And further provided, That all
13moneys used to place telephone wagers be on deposit in an amount
14sufficient to cover the wager at the race track where the
15account is opened. Each commission may promulgate rules or
16regulations to regulate telephone account wagering. All moneys
17wagered as a result of telephone account wagering shall be
18included in the amount wagered each racing day for purposes of
19taxation under section 222 and shall be included in the same
20pari-mutuel pools for each posted race. All telephone account
21wagering systems shall be solely operated by the licensed
22corporations.

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

1account shall place a telephone wager. Any person violating this
2subsection shall be guilty of a misdemeanor of the first degree.

3(d) A licensed corporation shall not accept a telephone
4wager from, nor establish a telephone betting account for, any
5person located in or residing in an area defined herein as the
6primary market area of a race track, other than the race track
7at which the licensed corporation is conducting a racing meet.
8Nothing herein shall prohibit the licensed corporation from
9accepting a telephone wager from, or establishing a telephone
10betting account for, any person located in or residing in the
11primary market area of the track at which the licensed
12corporation is conducting a meet and, if two tracks share
13primary market area as defined herein, both tracks shall have
14equal rights to the market in the shared area.

15(e) The primary market area of a race track, for purposes of
16this act, is defined as that land area included in a circle
17drawn with the race track as the center and a radius of 35 air
18miles.

19(f) The secondary market area of a racetrack, for purposes
20of this act, is defined as that land area included in a circle
21drawn with the racetrack as the center and a radius of 50 air
22miles, but not including the primary market area of the
23racetrack.

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

1locations, or on horse races simulcast to the locations pursuant
2to section 216, provided that:

3(1) No licensed corporation may establish nonprimary
4locations within the primary market area, as set forth in
5subsection (e), of any racetrack other than a racetrack at
6which the licensed corporation conducts race meetings.
7Establishment of a nonprimary location by a licensed
8corporation within the primary market area of a racetrack at
9which the licensed corporation conducts race meetings shall
10require approval of the commission regulating the activities
11of such licensed corporation.

12(2) Any licensed corporation may establish a nonprimary
13location within the secondary market area of a racetrack as
14set forth in subsection (f), provided that the nonprimary
15location is approved by both the State Harness Racing
16Commission and the State Horse Racing Commission.

17(3) Any licensed corporation may establish a nonprimary
18location in areas outside the primary and secondary market
19areas of any racetrack, provided that the location is
20approved by the commission which regulates the activities of
21the licensed corporation establishing the location.

22(4) Where a site is approved by the commission as a
23nonprimary location established by more than one licensed
24corporation, by agreement between the licensed corporations
25and with the approval of the appropriate commission, one
26licensed corporation may operate the pari-mutuel equipment
27for one or more of the licensed corporations at that
28location, but the location may still be considered a part of
29the racetrack enclosure of each of the licensed corporations
30approved to conduct pari-mutuel wagering at that location.

1(5) (i) Any licensed corporation, planning to establish
2a nonprimary location, shall submit to the appropriate
3commission a nonprimary location statement in a form
4prescribed by the appropriate commission which specifies,
5but is not limited to, the following:

6(A) The number of permanent and part-time jobs
7to be created at the proposed facility.

8(B) The population of the town or municipality,
9and surrounding area, where the proposed facility is
10to be located.

11(C) The proximity of the proposed facility to
12any other nonprimary location or licensed racetrack.

13(D) The type of seating to be provided,
14including areas in the proposed facility where
15patrons can handicap races.

16(E) The total seating capacity of the proposed
17facility.

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

19(G) The availability of food and beverages,
20including the number of tables, chairs, kitchen
21facilities and concession stands.

22(H) The number of available parking spaces.

23(I) A description of the general demeanor of the
24facility, including lighting, decor and plans for the
25exterior of the facility.

26(J) The number of betting windows and stand-
27alone terminals to be provided.

28(K) A description of the heating and air
29conditioning units, the smoke removal equipment and
30other climate control devices.

1(L) The total square feet of the proposed
2facility.

3(ii) The General Assembly recognizes the economic
4importance of the horse racing industry in this
5Commonwealth; and further recognizes that the
6Pennsylvania horse racing industry is in a state of
7decline. Therefore, it is the intent of the General
8Assembly through this amendatory act to revitalize and
9secure the economic future of the horse racing industry
10and to encourage statewide economic development by
11assisting in the development of nonprimary locations. It
12is the further intent of the General Assembly through
13this amendatory act that in no case shall the appropriate
14commission approve a nonprimary location statement when
15the sole purpose of that statement is to provide wagering
16opportunities pursuant to this act; rather, the
17appropriate commission shall only approve a nonprimary
18location statement that plans for a public facility
19offering not only wagering opportunities, but other
20amenities, such as high class restaurants and quality
21handicapping facilities, so that all or part of the
22nonprimary facility will resemble the clubhouse
23facilities of a racetrack. It is the further intent of
24the General Assembly through this amendatory act to offer
25the potential for the creation of jobs, not only in the
26racing and wagering industry, but more particularly in
27other service jobs, such as parking attendants, waiters
28and waitresses, security guards, custodial workers and
29food service personnel.

30(iii) In determining whether the nonprimary location

1statement meets the legislative intent of this amendatory
2act, the appropriate commission shall consider factors
3which include, but are not limited to, the following:

4(A) The purposes and provisions of this
5amendatory act.

6(B) The public interest.

7(C) The integrity of live racing.

8(D) The impact on the local community.

9(E) The potential for job creation.

10(F) The quality of the physical facilities and
11all services to be provided therein.

12(iv) In considering whether the appropriate
13commission will grant, suspend or revoke approval of
14nonprimary locations, the provisions of section 209(f)(2)
15shall apply. In connection therewith, the commission
16shall annually conduct inspections of the primary
17facility.

18(v) The rights, duties and obligations of the
19appropriate commission, as set forth in this amendatory
20act, shall apply to nonprimary locations and any
21employees or vendors of the licensed corporation
22establishing the nonprimary location.

23(6) (i) In addition to the requirements of paragraph
24(10), any licensed corporation which is authorized to
25conduct racing at any primary racetrack location at which
26there has not been, in the previous calendar year, a
27minimum of 142 days of live racing shall not be eligible
28to establish nonprimary locations outside its primary
29market area and shall only be eligible to establish
30nonprimary locations within its primary market area

1according to the following schedule.

2Year 3  4  5  6  7  8  9

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

101988	50	365
111989	69	365	Under 69	307
121990	88	365	Under 88	259
131991	107	365	Under 107	191
141992	126	365	Under 126	133
151993	142	365	Under 142	75

16(ii) Notwithstanding the chart contained in
17subparagraph (i), if any such licensed corporation
18schedules 69 or more racing days in calendar year 1989,
19it may, upon approval of the appropriate commission,
20establish nonprimary locations within its primary market
21area for that calendar year.

22(7) (i) The licensed corporation authorized to hold
23race meetings at a primary racetrack location at which
24more than one license is so authorized may be granted up
25to two nonprimary locations by the appropriate
26commission, up to a maximum of four per primary racetrack
27location. The licensed corporation authorized to hold
28race meetings at a primary racetrack location at which
29there is only one such licensed corporation so authorized
30may be granted up to three nonprimary locations.

1(ii) In addition to the nonprimary locations
2authorized by subparagraph (i), during each of the
3calendar years 1989 and 1990, the appropriate commission
4may approve no more than one additional nonprimary
5location per primary racetrack location, for one licensed
6corporation authorized to conduct racing at the primary
7racetrack location.

8(iii) The General Assembly may, at any time, stop
9the further approval of any nonprimary locations. The
10State Harness Racing Commission and the State Horse
11Racing Commission shall not have the authority to approve
12any greater number of nonprimary locations after December
1331, 1990, unless further authorized by the General
14Assembly.

15(iv) It shall be the duty of both the State Harness
16Racing Commission and the State Horse Racing Commission
17to annually report to the General Assembly on the effect
18of nonprimary locations on such factors as the local
19economy, the public interest and the integrity of live
20racing, and make suggestions and recommendations.

21(8) (i) Moneys wagered at all primary and nonprimary
22locations pursuant to this act shall be included in
23common pari-mutuel pools. All money wagered by patrons on
24these races shall be computed in the amount of money
25wagered each racing day for purposes of taxation under
26section 222. The licensed corporation conducting the race
27meeting and maintaining the pari-mutuel pools shall
28maintain accurate records of the amount wagered in each
29pool from every primary and nonprimary location.

30(ii) The retained moneys as provided for in section

1222(e) shall be calculated for each location where pari-
2mutuel wagering is being conducted. If wagering has taken
3place at a nonprimary location where the wagering is
4conducted by a licensed corporation other than the
5licensed corporation conducting the race meeting, the
6licensed corporation conducting the race meeting shall
7retain any moneys to which it is entitled by agreement
8between such licensed corporations and shall pay over the
9balance of the retained moneys to the licensed
10corporation conducting the wagering at the nonprimary
11location.

12(9) (i) A licensed corporation conducting a race
13meeting on which pari-mutuel wagering is conducted at one
14or more nonprimary locations shall distribute to the
15horsemen's organization representing a majority of owners
16and trainers at its racetrack, or in accordance with the
17practice of the parties, to be used for payment of purses
18at that racetrack, an amount equal to not less than 6% of
19the daily gross wagering handle on such races at a
20nonprimary location: Provided, however, That when the
21gross wagering handle on such races at any such
22nonprimary location on a given day is less than $30,000,
23the above-referenced percentage shall be not less than
243%, and when the gross wagering handle on such races at
25any such nonprimary location on a given day is between
26$30,000 and $75,000 inclusive, the above-referenced
27percentage shall be not less than 4.75%: And provided
28further, That whenever a nonprimary location is within
29the primary market area of a licensed corporation other
30than the licensed corporation conducting such races, the

1applicable percentage shall be distributed one-half to
2the horsemen's organization representing a majority of
3owners and trainers at the racetrack, or in accordance
4with the practice of the parties, where the race meeting
5is being conducted to be used for the payment of purses
6at that racetrack and one-half to such horsemen's
7organization, or in accordance with the practice of the
8parties, at the racetrack within the primary market area
9to be used for the payment of purses at that racetrack.
10Nothing in this subparagraph shall prevent a licensed
11corporation from agreeing to distribute amounts greater
12than the percentages set forth in this subparagraph.
13However, if no alternative agreement has been reached,
14the total percentage paid for purses under this
15subparagraph shall be in accordance with the minimum
16percentages set forth in this subparagraph.

17(ii) Notwithstanding subparagraph (i), or any other
18provision in this act to the contrary, a nonprimary
19location may be established within the primary market
20area of a racetrack by agreement between the licensed
21corporation and the horsemen's organization representing
22a majority of the owners and trainers at that racetrack
23specifying the total percentage of handle wagered at such
24nonprimary location to be distributed to that horsemen's
25organization, or in accordance with the practice of the
26parties, to be used for the payment of purses at that
27racetrack. If no such agreement is reached covering such
28locations, the total percentage to be paid for purses
29pursuant to this subparagraph shall be the same as that
30applied to on-track wagering at the racetrack located

1within the primary market area.

2(10) The provisions of section 234 relating to the
3required number of racing days apply to this subsection.
4However, a horsemen's organization representing a majority of
5owners and trainers at a racetrack may consent to waiving or
6modifying the provisions as pertaining to the required number
7of racing days scheduled by a licensed corporation at that
8racetrack.

9Section 219. Books and records of pari-mutuel wagering.

10Every corporation that conducts a horse race meeting at which
11pari-mutuel wagering is authorized, shall keep books and records
12so as to clearly show by separate record the total amount of
13money contributed to every pari-mutuel pool. The Department of
14Revenue or its authorized representative shall have access to
15all books and records for the purpose of examining the same and
16ascertaining whether the proper amount due to the State is being
17paid by the licensed corporation.

18Section 220. Filing of certain agreements with the commissions.

19Every corporation licensed to conduct horse race meetings at
20which pari-mutuel wagering is permitted shall promptly after
21entering any lease agreement concerning any concession, labor
22management relation, hiring of designated classes of officers,
23employees or contractors specified by the commissions or any
24such other contract or agreement as the commissions may
25prescribe, file with the appropriate commission a true and
26correct copy, or an accurate summary, if oral.

27Section 221. Retention percentages for pari-mutuel pools.

28(a) Every licensed corporation shall distribute the moneys
29in any pari-mutuel pool to the holders of winning tickets under
30the following requirements:

1(1) all tickets shall be presented for payment before
2the first day of April of the year following the year of
3their purchase; and

4(2) seventeen percent of the moneys plus the breakage
5from regular wagering pools shall be retained by the licensed
6corporations for further distribution under section 222; or

7(3) nineteen percent of the moneys plus the breakage
8from regular wagering pools from licensed corporations whose
9total deposits in all pari-mutuel pools averaged less than
10$300,000 per racing day for their previous meeting at the
11same facility; or

12(4) twenty percent of the moneys plus the breakage from
13the exacta, daily double, quinella and other wagering pools
14involving two horses each racing day shall be retained by the
15licensed corporations for further distribution under section
16222; or

17(5) at least 26% but no more than 35% of the moneys plus
18the breakage from the trifecta or other wagering pools
19involving more than two horses in one or more races each
20racing day shall be retained by the licensed corporations for
21further distribution under section 222; and

22(6) except as provided for in subsection (d.1) of
23section 222, every corporation may retain less than 17%, 19%
24or 20% of the moneys in the wagering pools under paragraphs
25(2), (3) and (4) or less than 26% of the moneys in the
26wagering pools under paragraph (5) upon approval from the
27appropriate commission; and

28(7) every corporation may retain more than 25% but no
29more than 35% of the moneys in the wagering pools under
30paragraph (5) upon approval from the appropriate commission;

1and

2(8) all moneys remaining in the wagering pools described
3under paragraphs (2), (3), (4), (5), (6) and (7) shall be
4distributed to the holders of winning tickets.

5(b) Breakage shall mean the odd cents of redistributions to
6be made on all contributions to pari-mutuel pools exceeding a
7sum equal to the next lowest multiple of ten.

8(c) The commissions shall establish by rule or regulation
9provisions for minus-pools relating to the retention
10requirements under this section.

11Section 222. Distribution of moneys retained from pari-mutuel
12pools; taxation.

13(a) There is hereby created the State Racing Fund. All
14licensed corporations that conduct harness race meetings shall
15pay a tax through the Department of Revenue for credit to the
16State Racing Fund. All licensed corporations that conduct
17thoroughbred horse race meetings shall pay a tax through the
18Department of Revenue for credit to the State Racing Fund. The
19tax imposed on all licensed corporations shall be a percentage
20tax on the amount wagered each racing day and be paid from the
21moneys retained under section 221.

22(a.1) At the close of each day of racing, all corporations
23licensed to conduct harness horse race meetings or thoroughbred
24horse race meetings which annually conduct at least 100 days of
25racing, or when two licensed corporations conduct their race
26meetings at the same facility and between them annually conduct
27at least 175 days of racing, will pay out of the moneys retained
28on that day under section 221, through the Department of Revenue
29for credit to the State Horse Racing Fund the following taxes
30for the time periods stated:

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

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

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

5(a.2) Corporations not annually conducting at least 100 days
6of racing, or 175 days of racing in conjunction with another
7licensee at the same facility as described above, will pay 2.5%
8from July 1, 1984 to June 30, 1986, and 2.0% thereafter. This
9subsection shall not apply if races are not conducted because of
10an act of God or because of a strike resulting from a labor
11dispute.

12(a.3) For purposes of this section, a racing day shall be
13considered conducted after the appropriate commission has
14certified the allocation of racing days to the Secretary of the
15Department of Revenue under the provisions of section 207(b)
16even if the racing day is subsequently cancelled by the licensed
17corporation for reasons beyond its control.

18(a.4) Any corporation which does not hold a license under
19section 209 on the effective date of this act and which is
20granted a license under this act shall be subject to payment out
21of moneys retained under section 221, through the Department of
22Revenue for credit to the State Horse Racing Fund, of the
23following tax for a period of four years from the issuance date
24of the license - 1.0%, at which time said licensee shall be
25subject to the lawful rate then in effect under subsection (a.1)
26(3).

27(a.5) In order to qualify for the 1.0% tax rate authorized
28under subsection (a.4), the newly licensed corporation may not
29include any officer, director or the immediate relative (spouse,
30children or parents) of any officer or director of any licensed

1racing corporation which conducted, at any time within the
2immediately preceding five years, any horse or harness race
3meetings at the racetrack enclosure for which the license is
4sought. Also, the newly licensed corporation may not include any
5shareholder (or their immediate relative) holding a 5% or
6greater interest who also held a 5% or greater interest in any
7corporation licensed at any time within the immediately
8preceding five years to conduct horse or harness race meetings
9at the racetrack enclosure for which the license is sought.

10(b) The commissions shall distribute moneys from the State
11Racing Fund, together with the interest earned thereon, in the
12following manner:

13(1) The salaries of employees of the commission employed
14by or for it under the provisions of this act and the act of
15April 9, 1929 (P.L.177, No.175), known as "The Administrative
16Code of 1929," net of any income earned or received by the
17commission.

18(2) The payment of the compensation of employees of the
19Department of Revenue when used in collecting taxes and
20penalties imposed by this act.

21(3) The expenses of the Secretary and the Department of
22Agriculture incurred in administering their duties under this
23act.

24(4) To pay all other expenses incurred by the commission
25in administering this act, net of any income earned or
26received by the commission.

27(5) From remaining moneys in the State Racing Fund:

28(i) An amount equivalent to one percent of the
29amount wagered each racing day at thoroughbred horse race
30meetings shall be paid by the Horse Racing Commission

1from the State Racing Fund through the Department of
2Revenue for credit to the Pennsylvania Breeding Fund.

3(ii) An amount equivalent to one and one-half
4percent of the amount wagered each racing day at harness
5horse race meetings shall be paid by the Harness Racing
6Commission from the State Racing Fund through the
7Department of Revenue for credit to the Pennsylvania Sire
8Stakes Fund, beginning on July 1, 1983.

9(6) All remaining moneys in the State Racing Fund shall
10be paid into the General Fund.

11(c) All breakage retained under section 221 by licensed
12corporations that conduct thoroughbred horse race meetings shall
13be distributed in the following manner:

14(1) Fifty percent of the breakage shall be retained by
15the licensed corporations.

16(2) Twenty-five percent of the breakage shall be
17retained by the licensed corporations to be used solely for
18purses to the horsemen.

19(3) Twenty-five percent of the breakage shall be paid to
20the Department of Revenue for credit to the State Horse
21Racing Fund.

22(d) All breakage retained under section 221 by licensed
23corporations that conduct harness horse race meetings shall be
24distributed in the following manner:

25(1) Fifty percent of the breakage shall be retained by
26the licensed corporations.

27(2) The remaining 50% of the breakage shall be retained
28by the licensed corporations of which one-half of this
29breakage shall be used solely by the licensed corporations
30for claiming and nonclaiming races where entry is restricted

1to Pennsylvania-sired horses in the following manner:

2(i) On January 1, 1982, and thereafter at least five
3of the horses programmed to start shall be Pennsylvania-
4sired horses. If at least five of the horses programmed
5to start are not Pennsylvania-sired horses, then the
6licensed corporation conducting the meet shall cancel the
7race.

8(ii) On January 1, 1983, and thereafter at least
9seven of the horses programmed to start shall be
10Pennsylvania-sired horses. If at least seven of the
11horses programmed to start are not Pennsylvania-sired
12horses, then the licensed corporation conducting the meet
13shall cancel the race.

14(iii) On January 1, 1984, and thereafter, only
15Pennsylvania-sired horses shall be allowed to start in
16these races. If all the positions are not filled by
17Pennsylvania-sired horses in these races, then the
18licensed corporation conducting the meet shall cancel the
19race.

20All breakage moneys due licensed corporations for the purses for
21claiming and nonclaiming races under this paragraph but not
22expended as a result of a race cancellation shall be carried
23forward to the next succeeding meet by the licensed corporations
24to be used for claiming and nonclaiming races which restrict
25entry to Pennsylvania-sired horses under the provisions of this
26paragraph.

27(d.1) An amount equivalent to one percent of the amount
28wagered at each racing day at thoroughbred and harness horse
29race meetings as set forth in section 221(a)(4) and (5) shall be
30paid through the Department of Revenue for credit to the State

1Racing Fund.

2(e) All remaining moneys retained under section 221 and not
3heretofore distributed shall be kept by the licensed
4corporations for their use.

5Section 223. Pennsylvania Breeding Fund.

6(a) There is hereby created a restricted account in the
7State Racing Fund to be known as the Pennsylvania Breeding Fund
8which shall consist of the money appropriated under the
9provisions of section 222 and which shall be administered by the
10State Horse Racing Commission.

11(b) After the deduction of expenses related to the
12administration and development of the Pennsylvania Breeding Fund
13program incurred by the Pennsylvania Horse Breeders'
14Association, the State Horse Racing Commission shall, by rule or
15regulation, provide for awards as follows:

16(1) An award of 30% of the purse earned by every
17registered Pennsylvania-bred thoroughbred horse sired by a
18registered Pennsylvania sire at the time of conception of the
19registered Pennsylvania-bred thoroughbred horse, or an award
20of 20% of the purse earned by every registered Pennsylvania-
21bred thoroughbred horse sired by a nonregistered sire, which
22finishes first, second or third in any race conducted by a
23licensed corporation under this act shall be paid to the
24breeder of said registered Pennsylvania-bred thoroughbred
25horse. A single award under this paragraph may not exceed 1%
26of the total annual fund money.

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

1registered Pennsylvania sire which regularly stood in
2Pennsylvania at the time of conception of said Pennsylvania-
3bred thoroughbred horse. A single award under this paragraph
4may not exceed .5% of the total annual fund money.

5(3) An award of 10% of the purse earned by any
6registered Pennsylvania-bred thoroughbred horse which
7finishes first in any race conducted by a licensed
8corporation under this act not restricting entry to
9registered Pennsylvania-bred thoroughbred horses shall be
10paid to the licensed owner of said registered Pennsylvania-
11bred thoroughbred horse at the time of winning. A single
12award under this paragraph may not exceed .5% of the total
13annual fund money.

14(c) Up to one-fifth of the total of the estimated fund
15moneys remaining each year after the deduction of expenses
16related to the administration and development of the
17Pennsylvania Breeding Fund program and the payment of breeder,
18stallion and owner awards, shall be divided among the licensed
19corporations that conduct thoroughbred horse race meetings in
20direct proportion to the rate by which each licensed corporation
21generated the fund moneys during the previous year to be used
22solely for purses for Pennsylvania Breeding Fund stakes races
23which restrict entry to registered Pennsylvania-bred
24thoroughbred horses.

25(d) The fund moneys remaining following disbursements as
26directed in subsection (b)(1), (2) and (3) and subsection (c)
27shall be divided among the licensed corporations that conduct
28thoroughbred horse race meetings in direct proportion to the
29rate by which each licensed corporation generated the fund
30moneys during the previous year to be used for purses as

1follows:

2(1) Claiming and nonclaiming Pennsylvania Breeding Fund
3races which restrict entry to registered Pennsylvania-bred
4thoroughbred horses.

5(2) Claiming and nonclaiming Pennsylvania Breeding Fund
6races which prefer registered Pennsylvania-bred thoroughbred
7horses as starters. In these races, should eight or more
8registered Pennsylvania-bred horses pass the entry box, the
9race shall be considered closed to horses other than
10registered Pennsylvania-bred thoroughbred horses.

11(e) Those Pennsylvania Breeding Fund moneys due licensed
12corporations as outlined in subsections (c) and (d) but not
13expended during the calendar year may be carried forth in the
14fund on the account of said licensed corporations to be expended
15during the succeeding year in addition to said corporations'
16fund moneys annually due them for purses.

17(f) The Pennsylvania Breeding Fund Advisory Committee, under
18the jurisdiction of the State Horse Racing Commission, is hereby
19established and shall be part of the Pennsylvania State Horse
20Racing Commission. The commission shall consist of five members,
21all of whom shall be residents of Pennsylvania, to be appointed
22by the commission by June 1 of each year. The committee shall
23consist of two members of the Pennsylvania Horse Breeders'
24Association, one member from the licensed corporations, one
25member from the association representing horsemen racing in
26Pennsylvania and one member of the commission. If any member
27other than the commission member has not been recommended by
28June 1 of each year, the commission shall make an appointment
29for the organization failing to so recommend a member of the
30committee. The committee shall assist and advise the commission

1under the provisions of this act but shall have no power in
2administering the fund. The members of the committee shall
3receive no compensation for their services as members.

4(g) The State Horse Racing Commission may contract with the
5Pennsylvania Horse Breeders' Association as the sole responsible
6body for the registration and records of Pennsylvania-breds. The
7Pennsylvania Horse Breeders' Association shall advise the
8commission when called upon and shall determine the
9qualifications for Pennsylvania-bred thoroughbred horses and
10Pennsylvania sires. Its registration and record facts are hereby
11declared as official Pennsylvania records. At the close of each
12calendar year, the Pennsylvania Horse Breeders' Association,
13through the Pennsylvania Breeding Fund Advisory Committee, shall
14submit to the commission for its approval an itemized budget of
15projected expenses for the ensuing year relating to the
16administration and development of the Pennsylvania Breeding Fund
17program. The commission, on no more than a quarterly basis,
18shall reimburse from the fund the Pennsylvania Horse Breeders'
19Association for those expenses actually incurred in the
20administration and development of the Breeding Fund program.

21Section 224. Pennsylvania Sire Stakes Fund.

22(a) There is hereby created a restricted account in the
23State Racing Fund to be known as the Pennsylvania Sire Stakes
24Fund which shall consist of the money appropriated under the
25provisions of section 222 and which shall be administered by the
26State Harness Racing Commission.

27(b) Sixty percent of the money remaining in the excess fund
28account of the Pennsylvania Sire Stakes Fund at the end of the
29calendar year in which this subsection is enacted shall be
30distributed to licensed corporations that conduct harness horse

1race meetings to be used in the next succeeding calendar year as
2purse money for Pennsylvania-sired horses. The remaining 40% of
3the money in the excess fund account at the end of the calendar
4year of the enactment of this subsection, together with the
5interest earned on that money, shall be distributed to licensed
6corporations that conduct harness horse race meetings to be used
7in the next succeeding calendar year following the next
8succeeding calendar year as purse money for Pennsylvania-sired
9horses. After deduction of sufficient funds to cover the State
10Harness Racing Commission's cost of administration, 80%, unless
11a smaller percentage is necessary in order to comply with the
12minimum dollar requirement of subsection (e), of all remaining
13moneys in the Pennsylvania Sire Stakes Fund at the end of the
14calendar year shall be distributed to licensed corporations that
15conduct harness horse race meetings to be used as purse money
16for Pennsylvania-sired horses. The State Harness Racing
17Commission may then allocate up to a total of and not exceeding
1840% of the total amount to be distributed to licensed
19corporations in a calendar year for use for a series of
20championship final races at the race tracks of licensed
21corporations that conduct harness horse race meetings. The State
22Harness Racing Commission shall allocate the moneys to these
23championship final races in an equal amount for each sex, age
24and gait for two- and three-year-old trotters and pacers. The
25State Harness Racing Commission shall determine conditions
26establishing eligibility to these final events. No pari-mutuel
27harness track shall be awarded more than 50% of the championship
28final races in any calendar year. The State Harness Racing
29Commission shall schedule these final events so as to evenly
30alternate classes at each race track each year. After the

1allocation for the championship final races has been determined,
2the remaining funds to be distributed to licensed corporations
3that conduct harness horse race meetings shall be divided
4equally among the licensed corporations. Each licensed
5corporation shall divide the funds received equally for each of:

6(1) four two-year-old races; one pace for colts, one
7pace for fillies, one trot for colts and one trot for
8fillies; and

9(2) four three-year-old races; one pace for colts, one
10pace for fillies, one trot for colts and one trot for
11fillies.

12(c) Each allotment shall provide purse money for the
13respective races. The purse money shall be in addition to any
14entry fees or other funds available.

15(d) Entry for these races shall be limited to harness horses
16which were sired by a standardbred stallion regularly standing
17in Pennsylvania and each race shall be designated a Pennsylvania
18sire stakes race. The State Harness Racing Commission shall make
19the provisions and regulations as it shall deem necessary for
20the proper administration of the entry restriction.

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

1harness horse races for two-year-old and three-year-old harness
2horses: Provided, however, That in no event shall less than
3$225,000 be allocated from the Pennsylvania Sire Stakes Fund and
4be divided equally among those agricultural fairs and one- or
5two-day events conducting these races. Each fair or one- or two-
6day events receiving the funds shall divide the total amount
7equally among all eligible races for two-year-old and three-
8year-old harness horses and shall apply the funds solely as
9additional purse funds. Only races to which entry is restricted
10to Pennsylvania-sired horses shall be eligible. The State
11Harness Racing Commission shall make the provisions and
12regulations as it shall deem necessary for the proper
13administration of all racing provided for in this subsection,
14including, but not limited to, portable stall rentals at one-day
15or two-day events.

16(f) The fund moneys remaining following disbursements as
17directed in subsections (b), (c), (d) and (e) shall, except as
18provided in subsection (b), be divided among active licensed
19corporations that conduct harness horse race meetings under this
20act in direct proportion to the rate by which each licensed
21corporation generated the fund moneys during the previous year.
22The fund moneys so divided shall be used for purses as follows:

23(1) A minimum of four races, claiming and nonclaiming,
24shall be carded per week on the condition sheet for overnight
25claiming and nonclaiming Pennsylvania Fund races which
26restrict entry to registered Pennsylvania-sired or wholly
27Pennsylvania-owned harness horses.

28(2) Claiming and nonclaiming Pennsylvania Fund races
29which prefer registered Pennsylvania-sired harness horses as
30starters. In these races, should seven or more registered

1Pennsylvania-sired harness horses pass the entry box, the
2race shall be considered closed to horses other than
3registered Pennsylvania-sired harness horses.

4Section 225.1. Fair Fund proceeds.

5The Secretary of Agriculture shall distribute certain moneys
6in the Fair Fund annually, on or before March 1, for
7reimbursement for each county agricultural society and each
8independent agricultural society conducting harness horse racing
9during its annual fair other than races for two- and three-year
10old colts and fillies, an amount of money equal to that used
11during their annual fair as purse money for harness horse
12racing, track and stable maintenance, starting gate rental and
13the cost of all harness horse racing officials required during
14their annual fair, but not more than $13,000, a minimum of
15$4,000 of which must be used for purse money and the balance of
16said allotment per fair, not used for purse money over the
17minimum $4,000 allotment, shall be used for said specific
18purposes herein before referenced, or otherwise said allotment
19shall be retained in the fund. The State Harness Racing
20Commission shall cause to be carried out as its responsibility a
21yearly inspection of each track facility and shall advise each
22operating fair of necessary track maintenance which is necessary
23to insure adequate racing surface during the course of scheduled
24fairs and racing events. If it is the opinion of the commission
25that the fair society or event sponsor is not adequately
26financing track maintenance through its permissible
27reimbursement under this paragraph, the commission shall so
28surcharge the Fair Fund account of said fair society or event
29sponsor to effectuate said remediation.

30Section 226. Hearing of refusal or revocation of license.

1If the commissions refuse to grant any license applied for
2under this act, or shall revoke or suspend any license granted,
3the applicant or licensee may demand, within ten days after
4notice of the decision of the appropriate commission, a hearing
5before the appropriate commission. The commission shall give
6prompt notice of the time and place for the hearing at which
7time the commission will hear the applicant or licensee. Pending
8the hearing and final determination, the action of the
9commissions in refusing to grant or in revoking or suspending a
10license shall remain in full force. The commissions may continue
11any hearing from time to time for the convenience of any of the
12parties. Any of the parties affected by a hearing may be
13represented by counsel. In the conduct of the hearing, the
14commissions shall not be bound by technical rules of evidence,
15but all evidence offered before the commissions shall be reduced
16to writing. All evidence, exhibits and findings of the
17commissions shall be permanently preserved and shall constitute
18the record of the commission. In connection with the hearing,
19the commissions shall have the power to administer oaths and
20examine witnesses, and may issue subpoenas to compel attendance
21of witnesses and the production of all material and relevant
22reports, books, papers, documents, correspondence and other
23evidence. The commissions may by order refer to one or more of
24its officers the duty of taking testimony in the matter and to
25report to the commission. Within 30 days after the conclusion of
26the hearing, the appropriate commission shall make a final order
27in writing, setting forth the reasons for the action taken by it
28and a copy thereof shall be served on the applicant or licensee.

29Section 227. Approval of the racing facility.

30The commissions shall not grant to a corporation formed under

1this act a license to conduct a horse race meeting at which
2pari-mutuel betting may be conducted, until the corporation has
3submitted to the appropriate commission a statement of the
4location of its proposed grounds and race track, together with a
5plan of the track and plans of all buildings, seating stands and
6other structures in a form as the appropriate commission may
7prescribe. All plans shall be approved by the appropriate
8commission before the issuance of any license to conduct a pari-
9mutuel horse race meeting.

10Section 228. Prohibition of wagering by certain officials,
11employees and minors.

12No commissioner, executive secretary, deputy, officer,
13representative, employee or counsel of the commission shall
14wager upon the outcome of any horse race conducted at a track at
15which pari-mutuel wagering is conducted by any licensed
16corporation of the commissions. No licensed corporation shall
17permit any person who is actually and apparently under 18 years
18of age to wager at a race meeting conducted by it. No licensed
19corporation shall permit any person who is under 18 years of age
20to attend a horse race meeting conducted by it unless the person
21is accompanied by a parent or guardian. This section shall not
22be construed to prohibit persons under 18 years of age, who are
23legally employed, from being upon the race track premises for
24the sole purpose of engaging in the performance of their duties
25as employees. The commissions shall, by rule, provide for
26enforcement of this section.

27Section 229. State horse racing veterinarians and State
28stewards.

29(a) The State Horse Racing Commission shall appoint and
30employ licensed veterinarians and stewards to serve as the horse

1racing veterinarians and State stewards for horse racing,
2respectively, at each meeting conducted by a corporation
3licensed by the State Horse Racing Commission. The State Horse
4Racing Commission shall have the authority to employ other
5individuals as shall be necessary to carry out the
6responsibilities of this section.

7(b) The costs and compensation of the horse racing
8veterinarians, State stewards and other individuals employed
9shall be fixed and paid by the State Horse Racing Commission.

10(c) The State Horse Racing Commission shall establish a job
11description and professional criteria for stewards to assure
12that they have a working knowledge of the horse racing industry.

13Section 230. State harness racing veterinarians.

14(a) The State Harness Racing Commission shall appoint and
15employ licensed veterinarians to serve as the harness racing
16veterinarians for harness racing at each meeting conducted by a
17corporation licensed by the State Harness Racing Commission. The
18State Harness Racing Commission shall have the authority to
19employ other individuals as shall be necessary to carry out the
20responsibilities under this section.

21(b) The costs and compensation of the harness racing
22veterinarians and other individuals employed to carry out the
23provisions of this act shall be fixed and paid by the State
24Harness Racing Commission.

25Section 231. Free passes, cards or badges.

26(a) A licensed corporation shall not issue free passes,
27cards or badges without admission tax, except to persons
28hereafter described: officers, employees and shareholders of the
29corporation conducting the race meeting; members, officers and
30employees of the commissions; members of horse racing

1associations of other states and foreign countries; public
2officers engaged in the performance of their duties; persons
3employed and accredited by the press to attend such meeting;
4owners, stable managers, trainers, jockeys, concessionaries and
5other persons whose actual duties require their presence at the
6race tracks.

7(b) The commissions may allow a licensed corporation to
8issue free passes, cards or badges for special promotional
9programs and seasonal discount ticket programs, so long as the
10corporation has obtained approval from the appropriate
11commission. The admissions taxes under section 208 shall be
12imposed on the price of all seasonal discount tickets sold by a
13licensed corporation.

14(c) The issuance of tax-free passes, cards or badges shall
15be under the rules and regulations of the commissions. A list of
16all persons, except persons admitted under an approved special
17promotional program or seasonal discount ticket program, to whom
18free passes, cards or badges are issued shall be filed with the
19appropriate commission.

20Section 232. Political subdivision agricultural fairs and horse
21race meetings not licensed to conduct pari-mutuel
22wagering.

23Pari-mutuel wagering on horse races at any county or other
24political subdivision, agricultural or other fair shall not be
25authorized. No lottery, pool selling, bookmaking or any other
26kind of gambling upon the results of races, heats or contests of
27speed of horses shall be allowed at any fair or at any horse
28race meeting conducted in the State, except those licensed to
29operate pari-mutuel wagering under the provisions of this act.

30Section 233. Monitoring of wagering on video screens.

1Every corporation licensed to conduct pari-mutuel betting
2shall display on video screens the approximate odds or
3approximate will-pays on each horse for each race as well as any
4combination of races including, but not limited to, quinellas,
5exactas, perfectas and any other combination or pool of races.
6No display of approximate odds or approximate will-pays shall be
7required where the wager is on horses in four or more races,
8such as "Pick 4, Pick 5 or Pick 6." In addition to displaying
9the amount of money wagered, the approximate odds or approximate
10will-pays on each horse or combination of horses shall be shown
11on video screens in each wagering division. For trifectas, in
12lieu of odds or approximate will-pays, the amount of money being
13wagered on each horse to win in the trifecta pool shall be
14displayed on video screens separately from any other
15information. The above required information shall be displayed
16from the opening of bets or wagering and be continually
17displayed until the wagering is closed. At least one video
18screen in each wagering division shall display the amount of
19money wagered on each horse involved in any trifecta pool.

20Section 234. Simulcasting.

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

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

1when those corporations first schedule a minimum of 200 days of
2racing in the calendar year in which they wish to simulcast. For
3purposes of this section a racing day shall consist of a minimum
4of eight live races, except at thoroughbred tracks on Breeders'
5Cup Event Day. For any licensed racing corporation engaged in
6simulcasting, regardless of location or distance from another
7licensed racing corporation, there shall exist a written
8agreement with the horsemen's organization representing a
9majority of the owners and trainers at both the sending and
10receiving racetracks. If no agreement can be reached, then the
11licensed corporation may petition the court of common pleas in
12the county in which the licensed corporation racetrack is
13located, which may, upon good cause shown by the licensed
14corporation that failure to consent would be detrimental to the
15Pennsylvania racing industry, direct the organization
16representing the horsemen to approve the simulcast agreement.
17The respective commission may then authorize the simulcasting,
18if, in the opinion of the appropriate commission, such
19simulcasting will have significant value to the Pennsylvania
20racing industry. The simulcast signal shall be encoded, and the
21racetrack receiving the simulcast signal shall not send this
22signal anywhere other than public locations authorized under
23section 218 or 218-A. All forms of pari-mutuel wagering
24described in section 221 shall be allowed on races to be
25televised by simulcasting under this section. The State Horse
26Racing Commission and the State Harness Racing Commission may
27promulgate regulations on wagering and the operation of these
28races. All money wagered by patrons on these races shall be
29computed in the amount of money wagered each racing day for
30purposes of taxation under section 222. In the event the

1simulcast is between a thoroughbred racetrack and a harness
2racetrack, both commissions shall have jurisdiction, and any
3approval required hereunder must be received from both
4commissions: Provided, however, That if no agreement can be
5reached between the horsemen's organization aforementioned, then
6the licensed corporation may petition the court of common pleas
7in the county in which the licensed corporation racetrack is
8located, which may, upon good cause shown by the licensed
9corporation that failure to consent would be detrimental to the
10Pennsylvania racing industry, direct the organization
11representing the horsemen to approve the simulcast agreement.
12The respective commissions may then authorize the simulcasting
13if, in the opinions of the respective commission, such
14simulcasting will have a significant value to the Pennsylvania
15racing industry. The provisions of this section with regard to
16the required number of racing days may be waived or modified by
17the applicable commission if the waiver or modification has been
18consented to by the horsemen's organization representing a
19majority of the owners and trainers at the racetrack where the
20racing days are to be scheduled or raced.

21Section 235. Commingling.

22(a) This section shall be applicable only to licensed
23thoroughbred racing corporations.

24(b) The race secretary shall receive entries and
25declarations as an agent for the licensed corporation for which
26the race secretary acts. The race secretary or an individual
27designated by the licensed corporation may receive stakes,
28forfeits, entrance money, jockey's and other fees, purchase
29money in claiming races and other money that can properly come
30into his possession as an agent for the licensed corporation for

1which the race secretary or designee is acting.

2(c) A licensed corporation shall maintain a separate
3account, called a Horsemen's Account. Money owing to owners in
4regard to purses, stakes, rewards, claims and deposits shall be
5deposited into the Horsemen's Account. Funds in the account
6shall be recognized and denominated as being the sole property
7of owners. Deposited funds may not be commingled with funds of
8the licensed corporation unless a licensed corporation has
9established, in favor of the organization which represents a
10majority of the owners and trainers racing with the licensed
11corporation, an irrevocable clean letter of credit with an
12evergreen clause. The minimum amount of the credit must be the
13greater of $1,000,000 or 110% of the highest monthly balance in
14the Horsemen's Account in the immediate prior year. To calculate
15the monthly balance in the Horsemen's Account, the sum of the
16daily balances shall be divided by the number of days in the
17month. The evergreen clause must provide that, 30 days prior to
18the expiration of the letter of credit, the financial
19institution can elect not to renew the letter of credit; that,
20upon this election, the financial institution must notify the
21designee of the organization which represents a majority of the
22owners and trainers racing with the licensed corporation, by
23registered mail, return receipt requested, of the election not
24to renew; and that the financial institution will honor the
25letter of credit for six months after expiration. Purse money
26earned by owners shall be deposited by the licensed corporation
27in the Horsemen's Account within 48 hours after the result of
28the race in which the money was earned has been declared
29official and the purse has been released by the commission.

30(d) A licensed corporation shall designate a bookkeeper who

1is authorized to receive and disburse funds from the Horsemen's
2Account. The bookkeeper must be bonded to provide indemnity for
3malfeasance, nonfeasance and misfeasance. A certified copy of
4the bond shall be filed with the commission.

5(e) The Horsemen's Account and the investment and deposit
6schedules relating to the account are subject to examination, at
7reasonable times, by a designee of the organization which
8represents a majority of the owners and trainers racing with the
9licensed corporation and by the commission. The bookkeeper shall
10provide each owner with access, at reasonable times during a
11racing day, to the amount of funds in the Horsemen's Account
12credited to that owner. At the close of a race meeting, the
13bookkeeper shall mail to each owner a record of deposits,
14withdrawals and transfers affecting the amount of funds in the
15Horsemen's Account credited to that owner.

16(f) The Horsemen's Account shall be audited periodically as
17deemed appropriate by the commission. There shall be at least
18one audit per year. Monthly statements shall be provided to the
19designee of the organization which represents a majority of the
20owners and trainers racing with the licensed corporation.

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

1each month must be earned in an amount equal to the Federal
2Reserve Discount Rate on the first day of the month.

3Section 236. Harness racing purse moneys.

4Each licensed harness horse racing association must place on
5deposit with the State Harness Racing Commission by March 1 of
6each year an irrevocable letter of credit equivalent to its
7average weekly purse total from the immediate prior year. The
8commission shall hold the letter of credit in trust for the
9harness horsemen racing at that licensed corporation in the
10event that purse checks are not issued or that insufficient
11funds are available to cover the purse checks.

12Section 237. Limitations on day and night racing.

13(a) For the purpose of this section day racing shall be
14racing days for which the starting time for the first race is at
15or before 2:00 p.m., and night racing shall be racing days for
16which the starting time for the first race is after 5:00 p.m.
17Day racing may not be conducted at any racing facility after
181985 on any comparable type racing day or holiday on which day
19racing was not conducted in 1985 unless all presently operating
20licensed corporations conducting day racing agree, in writing,
21to allow such day racing activities.

22(b) Night racing may not be conducted at any racing facility
23after 1985 on any comparable type racing night or holiday on
24which night racing was not conducted in 1985 unless all
25presently operating racing facilities conducting night racing
26agree, in writing, to allow night racing activities.

27(c) Each appropriate commission shall have the authority to
28grant exceptions to this section upon application by a licensed
29racing corporation for not more than five racing days per
30calendar year with respect to each licensed corporation. The

1provisions of this section shall be effective until July 1,
21991.]

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

4CHAPTER 2-A

5RACING OVERSIGHT

6Section 201-A. Bureau of Horse Racing.

7(a) Establishment.--The Bureau of Horse Racing is
8established within the board to oversee day-to-day operations of
9horse racing and pari-mutuel operations.

10(b) Jurisdiction.--The board shall have jurisdiction and
11supervisory authority over the following:

12(1) Pari-mutuel horse racing activities in this
13Commonwealth.

14(2) A licensed corporation engaged in pari-mutuel horse
15racing activities.

16(3) Out-of-competition drug testing, which shall include
17the random drug testing of all horses entered in a race,
18stabled on the grounds or shipped into a licensed
19corporation's facility.

20(c) Records.--The board shall maintain at its office the
21following:

22(1) All books, maps, documents and papers entrusted to
23the board's care.

24(2) A docket setting forth the names of all stockholders
25in all corporations licensed under this act. The docket shall
26be open for public inspection.

27(3) The number of shares held by each stockholder and
28the date on which each shareholder acquired stock in the
29licensed corporation.

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

1(1) All rules and regulations promulgated under the
2former act of December 11, 1967 (P.L.707, No.331), referred
3to as the Pennsylvania Thoroughbred Horse Racing Law, or the
4former act of December 22, 1959 (P.L.1978, No.728), referred
5to as the Pennsylvania Harness Racing Law, shall remain in
6effect except to the extent that they are in direct conflict
7with this act. The board may amend, revise or alter the rules
8and regulations as the board deems necessary.

9(2) In order to facilitate the prompt implementation of
10this chapter, the board may promulgate temporary regulations
11which shall expire no later than two years following the
12effective date of this chapter. The board may promulgate
13temporary regulations not subject to:

14(i) Sections 201, 202 and 203 of the act of July 31,
151968 (P.L.769, No.240), referred to as the Commonwealth
16Documents Law.

17(ii) The act of June 25, 1982 (P.L.633, No.181),
18known as the Regulatory Review Act.

19(e) Licenses.--All licenses issued prior to January 1, 2014,
20shall remain in effect for the remainder of the term for which
21the licenses were issued unless revoked or suspended. After the
22licenses have expired, all renewals or new licenses shall be
23issued under this act. All renewals shall be subject to and made
24consistent with the requirements of 4 Pa.C.S. § 1326 (relating
25to license renewals).

26Section 202-A. Additional powers.

27The board shall supervise horse racing at which pari-mutuel
28wagering is conducted and approve the number of racing days
29allocated by each licensed corporation. In addition to any other
30powers of the board:

1(1) The board shall promulgate both temporary and
2permanent regulations regarding medication rules.

3(2) The board may establish a general promotion and
4marketing program and contract to implement the program to
5assist the licensed corporations in increasing their
6attendance and average daily handle. The board may impose a
7surcharge of up to 1.5% on all purses awarded to a horseman's
8organization which shall be used exclusively for the
9promotion and marketing of racing.

10(3) Except as otherwise provided under this paragraph,
11two years following the effective date of this section, the
12board may, through temporary and permanent regulations,
13increase each year any fee, charge, cost or administrative
14penalty provided in this chapter. The increase may not exceed
15the annual cost-of-living adjustment calculated by applying
16the percentage change in the consumer price index for all
17urban consumers for the Pennsylvania, New Jersey, Delaware
18and Maryland area for the most recent 12-month period for
19which figures have been officially reported by the United
20States Department of Labor, Bureau of Labor Statistics,
21immediately prior to the date the adjustment is due to take
22effect. This paragraph shall not apply to the costs of drug
23testing under section 304.

24(4) The board shall annually submit a budget proposal
25for the enforcement of this act to the General Assembly.

26Section 202.1-A. Payment.

27The rules of the board shall provide that a winning pari-
28mutuel ticket must be presented for payment before April 1 of
29the year following the year of purchase. Failure to present the
30ticket within the prescribed period of time shall constitute a

1waiver of the right to participate in the award. After April 1
2of the year following, a licensed corporation shall forward the
3remaining funds held for uncashed tickets to the Department of
4Revenue. The funds shall be deposited into the State Racing
5Fund. If it is shown to the satisfaction of the board and the
6Department of Revenue, through substantiated and recorded data,
7that the reason for the pari-mutuel ticket or tickets being
8outstanding and unclaimed is loss, misplacement or theft within
9the confines and control of the pari-mutuel department of a
10licensed corporation and it is shown to the satisfaction of the
11board and the Department of Revenue that the pari-mutuel ticket
12or tickets in question have been cashed by the pari-mutuel
13department, the Department of Revenue, with the approval of the
14board, may adjust and credit the licensed corporation's
15outstanding ticket account accordingly on March 31 of the year
16following the year of purchase or after a complete audit of the
17outstanding ticket accounts has been performed. The licensed
18corporation shall reimburse an employee who has been held
19personally accountable and paid for the lost, misplaced or
20stolen ticket.

21Section 203-A. License.

22After January 1, 2015, a corporation shall conduct a horse
23racing meeting at the location designated, as approved by the
24board pursuant to 4 Pa.C.S. §§ 1302 (relating to Category 1 slot
25machine license) and 1303 (relating to to additional Category 1
26slot machine license requirements).

27Section 204-A. (Reserved).

28Section 205-A. Number of horse racing corporations.

29(a) Harness horse racing.--No more than four corporations
30shall be licensed by the board to conduct a pari-mutuel meet. No

1corporation licensed under this act to conduct harness horse
2racing with pari-mutuel wagering shall be licensed to conduct
3thoroughbred horse racing with pari-mutuel wagering.

4(b) Thoroughbred horse racing.--No more than three
5corporations shall be licensed by the board to conduct a pari-
6mutuel meet. No corporation licensed under this act to conduct
7thoroughbred horse racing with pari-mutuel wagering shall be
8licensed to conduct harness horse racing with pari-mutuel
9wagering.

10Section 206-A. Department of Revenue.

11The Department of Revenue shall provide financial
12administration of pari-mutuel wagering under this act. The
13Department of Revenue shall continue to prescribe the form and
14the system of accounting to be employed by the licensed
15corporation, and may access and examine equipment relating to
16pari-mutuel wagering.

17Section 207-A. Allocation of racing days.

18(a) General rule.--Racing shall be conducted consistent with
194 Pa.C.S. § 1303 (relating to additional category 1 slot machine
20license requirements).

21(b) Certification.--The board shall submit to the Secretary
22of Revenue the approved number of racing days for each licensed
23corporation, including the following information:

24(1) the names and addresses of the corporations;

25(2) the names and addresses of the officers and general
26managers of the corporations; and

27(3) any other information the board deems appropriate.

28(c) Cancellation.--If a racing day is canceled by a licensed
29corporation for reasons beyond the licensed corporation's
30control, the board shall grant the licensed corporation the

1right to conduct that racing day in the same or the next ensuing
2calendar year, if schedules permit.

3Section 208-A. Fee for racetrack admissions.

4(a) General rule.--

5(1) Each corporation holding a horse racing meeting
6under this act shall remit to the Department of Revenue a fee
7equal to 50¢ for each individual who attended the horse
8racing meeting. The amount collected shall be deposited into
9the State Racing Fund.

10(2) Nothing under this section shall apply to a racing
11meeting conducted by a State, county or other agricultural
12association.

13(b) Investigation.--The Department of Revenue may examine
14books and records of the corporation conducting a horse racing
15meeting and may hear testimony and take proofs and material or
16any other data for the Department of Revenue's information. The
17Department of Revenue may create an account for the tax due the
18State, with the expense of the examination. A penalty of 5% and
19interest at the rate of 1% per month from the due date to the
20date of payment of the tax shall be payable if tax imposed under
21this section is not paid when due.

22Section 209-A. Licenses for horse racing meetings.

23(a) Procedure and terms.--

24(1) After January 1, 2014, a corporation desiring to
25conduct horse racing meetings for which a Category 1 license
26has been issued and at which pari-mutuel wagering is
27permitted may apply to the board for a license or a renewal
28of any existing license.

29(2) A license holder shall have the privilege to conduct
30a horse racing meeting at which pari-mutuel wagering is

1permitted, but shall not have a property right.

2(3) The board may revoke or suspend the license of a
3corporation if the board finds that the corporation, its
4officers, employees or agents, has not complied with the
5provisions of this act.

6(4) A license may not be transferred without the
7approval of the board.

8(b) Conditions.--Each license shall be issued upon the
9following conditions:

10(1) A horse racing meeting at which pari-mutuel wagering
11is conducted shall be subject to the supervision of the
12board.

13(2) Pari-mutuel wagering conducted shall be subject to
14the supervision of the Department of Revenue.

15(3) The corporation posts a bond or irrevocable letter
16of credit payable to the board in an amount equal to the sum
17of the corporation's average weekly payment of the pari-
18mutuel tax, during active racing, into the State Racing Fund,
19based on revenues generated in the previous year.

20(4) The licensed corporation prints in its racing
21programs the procedure for filing a complaint with the board.

22(c) Applications.--Applications for a licensed corporation
23shall be in the form prescribed by the board and shall contain
24information, material or evidence as the board may require.

25(d) Grounds for denial, revocation or suspension.--The board
26may refuse to grant, may revoke or may suspend a license to a
27corporation, if it determines that:

28(1) Any officer, director, member or stockholder of the
29corporation applying for a license or of any corporation
30which owns stock in or shares in the profits, or participates

1in the management of the affairs of the applicant, or which
2leases to the applicant the track where it shall operate:

3(i) has been convicted of a crime involving moral
4turpitude;

5(ii) has engaged in bookmaking or other forms of
6illegal gambling;

7(iii) has been found guilty of any fraud or
8misrepresentation in connection with racing or breeding;

9(iv) has been guilty of any violation or attempt to
10violate any law, rule or regulation of any racing
11jurisdiction, for which suspension from racing might be
12imposed in such jurisdiction; or

13(v) has violated any rule, regulation or order of
14the board.

15(2) The experience, character or fitness of any officer,
16director or stockholder of the licensed corporation is such
17that the participation of the person in horse racing or
18related activities would be inconsistent with the public
19interest, convenience or necessity or with the best interests
20of racing. If the board determines that the interest of any
21stockholder referred to in this paragraph or in paragraph (1)
22is insufficient to affect adversely the conduct of pari-
23mutuel horse racing by the corporation in accordance with the
24provisions of this act, the board may disregard the interest
25in determining whether or not to grant a license to the
26corporation.

27(3) The corporation has use of the facility consistent
28with the requirements of 4 Pa.C.S. Pt. II (relating to
29gaming).

30(4) A licensed corporation has commingled horsemen's

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

3(5) The charter or certificate of incorporation fails to
4contain a provision requiring any stockholder, upon written
5demand of the corporation, to sell his stock to the
6corporation at a price to be fixed by the board, provided the
7demand be made pursuant to written direction of the board and
8from the date of the making of the demand prohibiting the
9transfer of the certificate of stock except to the
10corporation

11(e) Conditional licenses.--Pending final determination of
12any question under this section, the board may issue a
13conditional license upon such terms and conditions as they see
14fit to effectuate the provisions of this act.

15Section 210-A. (Reserved).

16Section 211-A. Financial and employment interests.

17(a) General rule.--The board shall ensure that a corporation
18applying for a license or a licensed corporation complies with
19the provisions of 4 Pa.C.S. §§ 1512 (relating to financial and 
20employment interests), 1512.1 (relating to additional 
21restrictions) and 1513 (relating to political influence).

22(b) Gifts.--No officer or employee of a licensed corporation
23or their spouses, parents, fathers-in-law, mothers-in-law,
24siblings, sons, daughters, sons-in-law or daughters-in-law shall
25accept gifts from breeders, owners or trainers of horses which
26participate at the race track.

27Section 212-A. Officials at horse racing meetings.

28At all horse racing meetings, qualified judges and starters
29shall be approved by the board. For harness horse racing
30meetings, no person shall be approved as a judge or starter

1unless the person is licensed by the United States Trotting
2Association as a duly qualified pari-mutuel racing meeting
3official. All officials shall enforce the law and shall provide
4written reports of the activities and conduct of such racing
5meetings to the board. The compensation of these judges and
6starters shall be assessed to the board.

7Section 213-A. Licenses for individuals.

8(a) General rule.--The board shall license trainers,
9jockeys, drivers, persons participating in horse racing
10meetings, horse owners and all other persons required to be
11licensed as determined by the board. The license does not give
12its holder a property right.

13(b) Fee.--The board shall fix and may establish classes of
14licenses for license fees to be paid by persons or corporations
15so licensed, provided that such occupational license fees shall
16not exceed $1,000. All fees shall be paid to the board and
17deposited into the State Racing Fund.

18(c) Application.--The application shall be in the form and
19contain the information as the board may require. Applicants
20shall have their fingerprints taken as part of the background
21investigation. The board may exempt applicants from the
22fingerprint requirement for positions not related to the care or
23training of horses, racing, wagering, security or the management
24operations of the racing corporation or racetrack.

25(d) Duration.--All licenses shall be issued for three years
26and shall be renewed, upon payment of the required fee and upon
27compliance with this act.

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

1conditional license within 12 months of the issuance of the
2applicant's preceding conditional license.

3(f) Processing and issuance.--The board shall fix the manner
4by which licenses are processed and issued by rule or
5regulation.

6(g) Denial.--The board may refuse to issue a license under
7this section, if they shall find that the applicant:

8(1) Has been convicted of a crime involving moral
9turpitude.

10(2) Has engaged in bookmaking or other form of illegal
11gambling.

12(3) Has been found guilty of any fraud or
13misrepresentation in connection with racing or breeding.

14(4) Has been found guilty of any violation or attempt to
15violate any law, rule or regulation of racing in any
16jurisdiction, for which suspension from racing might be
17imposed in that jurisdiction.

18(5) Has violated any rule, regulation or order of the
19board.

20(6) Has been convicted of an offense relating to fixing
21races.

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

30(i) Suspension, revocation and refusal to renew.--The board

1may suspend, refuse to renew or revoke a license issued under
2this section, if it shall determine that:

3(1) The applicant or licensee:

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

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

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

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

14(v) has violated any rule, regulation or order of
15the board; or

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

18(2) That the experience, character or general fitness of
19any applicant or licensee is such that the participation of
20the person in horse racing or related activities would be
21inconsistent with the public interest, convenience or
22necessity or with the best interests of racing.

23(3) That the applicant or licensee has been convicted of
24an offense related to fixing races unless the conviction has
25been overturned on appeal under the laws of the jurisdiction
26of the original finding.

27(j) Temporary license.--Pending final determination of any
28question under this section, the board may issue a temporary
29license upon such terms and conditions as they may deem
30necessary or proper to effectuate the provisions of this act.

1(k) Hearings.--The board may suspend a license under
2subsection (i) pending a hearing on the matter. The hearing must
3take place within ten days of the suspension.

4(l) Reciprocity.--The board shall not grant licenses to
5citizens of states that do not grant licenses to citizens of
6this Commonwealth on the basis of in-state preference.

7Section 213.1-A. Licenses for advanced deposit wagering,
8totalisator and medication providers.

9The board shall have jurisdiction over the following:

10(1) A person that offers advanced deposit wagering or
11Internet wagering to residents of this Commonwealth,
12regardless of the location of the provider. Any person or
13entity under this paragraph shall be licensed by the board
14and remit an annual license fee not to exceed $100,000. The
15provider shall certify to the board that it has complied with
16all applicable account wagering tax laws in this Commonwealth
17and submit information on operating systems and procedures as
18required by the board.

19(2) A person that provides totalisator services to a
20racing association located in this Commonwealth, including a
21totalisator company located in this Commonwealth or operating
22from a location outside this Commonwealth. A totalisator
23company under this paragraph shall be licensed by the board
24and remit an annual license fee not to exceed $100,000. The
25provider shall submit information on operating systems and
26procedures as required by the board.

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

1Commonwealth by means of Internet, mail delivery, in person
2delivery or other means.

3Section 214-A. Power of board to impose fines.

4(a) General rule.--The board is authorized to impose
5administrative fines upon any corporation, association or person
6participating in any way in any horse racing meeting at which
7pari-mutuel wagering is conducted, other than as a patron and
8whether licensed by the board or not, for a violation of any
9provision of this act, not exceeding $100,000 for each
10violation, which fines shall be credited to the State Racing
11Fund and may be appropriated for the enforcement of this act.

12(b) Interests.--

13(1) No officer or employee of a licensed corporation or
14their spouses, parents, fathers-in-law, mothers-in-law,
15siblings, sons, daughters, sons-in-law or daughters-in-law
16shall have any direct or indirect interest in a race horse
17that is participating in a race at a meet at which the person
18or relative listed under this paragraph holds any interest in
19the licensed corporation conducting the meet and the track
20facility.

21(2) The board shall impose a fine upon any person for
22violation of this subsection as provided for under subsection
23(a).

24Section 215-A. Security personnel, powers and duties and
25penalty.

26(a) General rule.--The board and any licensed corporations
27are authorized and empowered to employ persons as security
28personnel. The designated persons are also authorized to
29interrogate and eject from the racing meeting grounds or
30enclosure any persons suspected of violating this act.

1(b) Penalty.--A person found within a race track enclosure
2after having been refused admission thereto or ejected therefrom
3shall, upon conviction, be guilty of a summary offense and be
4sentenced to pay a fine of not more than $500.

5Section 216-A. (Reserved).

6Section 216.1-A. Televised international and interstate
7simulcastings of horse races.

8(a) Host licensees.--Upon request by a licensed corporation,
9the board may grant permission to maintain common pari-mutuel
10pools on international and interstate races transmitted to and
11from the racetrack enclosures within this Commonwealth. The
12licensed corporation shall be designated as the "host licensee."
13All simulcasts of such horse races shall also comply with the
14provisions of the Interstate Horseracing Act of 1978 (Public Law
1595-515, 15 U.S.C. § 3001 et seq.) and all forms of pari-mutuel
16wagering, where lawful in each state involved, placed or
17transmitted by an individual in one state via telephone,
18Internet or other electronic media and accepted and maintained
19in common pari-mutuel pools. The permission to act as host
20licensee for international and interstate simulcast races shall
21be limited to licensed corporations which comply with 4 Pa.C.S.
22§ 1303(d) (relating to additional Category 1 slot machine
23license requirements).

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

25(1) Cross simulcasting of the races described in
26subsection (a) shall be permitted if all amounts wagered on
27the races in this Commonwealth are included in common pari-
28mutuel pools. A host licensee seeking permission to cross
29simulcast must obtain approval from the board. Simulcasts of
30horse races shall also comply with the provisions of the

1Interstate Horseracing Act of 1978.

2(2) Forms of pari-mutuel wagering shall be allowed on
3horse races to be televised by simulcasting. The board may
4permit pari-mutuel pools in this Commonwealth to be combined
5with pari-mutuel pools created under the laws of another
6jurisdiction and may permit pari-mutuel pools created under
7the laws of another jurisdiction to be combined with pari-
8mutuel pools in this Commonwealth. The board may promulgate
9regulations necessary to regulate wagering on televised
10simulcasts.

11(c) Taxation.--Money wagered by patrons in this Commonwealth
12on the horse races shall be computed by the amount of money
13wagered each racing day for purposes of taxation under section
14222-A. Thoroughbred races shall be considered a part of a
15thoroughbred horse racing meeting and harness horse races shall
16be considered a part of a harness horse racing meeting for
17purposes of section 222-A(b)(5).

18Section 217-A. (Reserved).

19Section 218.1-A. Place and manner of conducting pari-mutuel
20wagering.

21(a) Wagering location.--A licensed corporation shall provide
22a location during a horse racing meeting within the racetrack
23enclosure where the licensed corporation shall operate the pari-
24mutuel system of wagering by its patrons on the results of horse
25races held at the meetings or televised to the racetrack
26enclosure by simulcasting, as set forth under section 216.1-A.
27The licensed corporation shall erect a sign or board compatible
28with the totalisator systems upon which shall be displayed all
29of the following:

30(1) The approximate straight odds on each horse in any

1race.

2(2) The value of a winning mutuel ticket, straight,
3place or show on the first three horses in the race.

4(3) The elapsed time of the race.

5(4) The value of a winning daily double ticket, if a
6daily double be conducted, and any other information that the
7board may deem necessary for the guidance of the general
8public.

9(a.1) Equipment.--The board may test and examine the
10equipment to be used for the display of the information in
11subsection (a)(1), (2), (3) and (4).

12(b) Advanced deposit wagering and Internet wagering.--Upon
13request by any licensed corporation, the board may grant
14permission to the licensed corporation to operate advanced
15deposit wagering or Internet wagering on horse racing only, in
16accordance with all of the following:

17(1) Messages to place wagers must be to a place within
18the racetrack enclosure.

19(2) Money used to place such wagers must be on deposit
20in an amount sufficient to cover the wager at the racetrack
21where the account is opened.

22The board may promulgate regulations necessary to regulate
23advanced deposit wagering and Internet wagering for horse racing
24only.

25(c) Taxation.--Money wagered as a result of advanced deposit
26wagering or Internet wagering shall be included in the amount
27wagered each racing day for purposes of taxation under section
28222-A and shall be included in the same pari-mutuel pools for
29each posted race. Advanced deposit wagering or Internet wagering
30shall be operated by the licensed corporations or by a duly

1licensed vendor.

2(d) Conditions.--A licensed corporation shall only accept
3and tabulate a wager by a direct request via telephone, Internet
4or other electronic media from the holder of an advanced deposit
5wagering or Internet wagering account. Only the holder of the
6advanced deposit wagering or Internet wagering account shall
7place a wager. Any person who violates this subsection commits a
8misdemeanor of the first degree.

9(e) Primary market area.--A licensed corporation may not
10accept a wager nor establish advanced deposit wagering or
11Internet wagering for any person located in the primary market
12area of a racetrack, other than the racetrack at which the
13licensed corporation is conducting a racing meet. Nothing in
14this subsection shall be construed to prohibit the licensed
15corporation from accepting a wager from, or establishing an
16advanced deposit wagering or Internet wagering account for any
17person located in the primary market area of the track where the
18licensed corporation is conducting a meet. If two tracks share
19primary market area, both tracks shall have equal rights to the
20market in the shared area.

21(f) Definitions.--The following words and phrases when used
22in this section shall have the meanings given to them in this
23subsection, unless the context clearly indicates otherwise:

24"Primary market area of a racetrack." The land area included
25in a circle drawn with the racetrack as the center and a radius
26of 35 air miles.

27"Secondary market area of a racetrack." The land area
28included in a circle drawn with the racetrack as the center and
29a radius of 50 air miles, but not including the primary market
30area of the racetrack.

1Section 218.2-A. Pari-mutuel wagering at nonprimary locations.

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

3(1) Notwithstanding any other provisions of this act, on
4or after January 2014, upon approval by the board, a licensed
5corporation may continue to operate a nonprimary location
6where it has conducted pari-mutuel wagering on horse races
7conducted by the licensed corporation. The licensed
8corporation may continue to conduct pari-mutuel wagering at
9the location on horse races conducted by another licensed
10corporation, which horse races may be televised to the
11location or on horse races simulcast to the location under
12section 216-A, provided that:

13(i) A licensed corporation has not established a
14nonprimary location within the primary market area of any
15racetrack other than a racetrack where the licensed
16corporation conducts racing meetings. Establishment of a
17nonprimary location by a licensed corporation within the
18primary market area of a racetrack where the licensed
19corporation conducts racing meetings shall require
20approval of the board regulating the activities of the
21licensed corporation.

22(ii) A licensed corporation has not established a
23nonprimary location within the secondary market area of a
24racetrack if the nonprimary location is approved by the
25board.

26(iii) A licensed corporation has not established a
27nonprimary location in an area outside the primary and
28secondary market areas of any racetrack if the location
29is approved by the board.

30(2) Except as provided under paragraph (1), no

1additional licenses shall be permitted.

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

3(1) (Reserved).

4(2) (Reserved).

5(3) The board shall annually conduct inspections of the
6primary facility.

7(4) The rights, duties and obligations of the board
8shall apply to nonprimary locations and any employees or
9vendors of the licensed corporation establishing the
10nonprimary location.

11(c) Taxation and records.--Money wagered at all primary and
12nonprimary locations under this act shall be included in common
13pari-mutuel pools. Money wagered by patrons on the races shall
14be computed by the amount of money wagered each racing day for
15purposes of taxation under section 222-A. The licensed
16corporation conducting the racing meeting and maintaining the
17pari-mutuel pools shall maintain accurate records of the amount
18wagered in each pool from every primary and nonprimary location.

19(d) Retention.--The retained money as provided for in
20section 222-A(e) shall be calculated for each location where
21pari-mutuel wagering is being conducted. If wagering has taken
22place at a nonprimary location where the wagering is conducted
23by a licensed corporation other than the licensed corporation
24conducting the racing meeting, the licensed corporation
25conducting the racing meeting shall retain any money to which it
26is entitled by agreement. The licensed corporation conducting
27the meeting shall pay over the balance of the retained money to
28the licensed corporation conducting the wagering at the
29nonprimary location.

30(e) Payment of purses.--A licensed corporation conducting a

1racing meeting where pari-mutuel wagering is conducted at one or
2more nonprimary locations shall distribute to the horsemen's
3organization representing a majority of owners and trainers at
4its racetrack, or in accordance with the practice of the
5parties, to be used for payment of purses at that racetrack, as
6follows:

7(1) Except as provided for in paragraphs (2), (3), (4)
8and (5), an amount equal to but not less than 6% of the daily
9gross wagering handle on the races at a nonprimary location.

10(2) When the gross wagering handle on the races at a
11nonprimary location on a given day is less than $30,000, the
12percentage may not be less than 3%.

13(3) When the gross wagering handle on the races at a
14nonprimary location on a given day is between $30,000 and
15$75,000 inclusive, the percentage may not be less than 4.75%.

16(4) Whenever a nonprimary location is within the primary
17market area of a licensed corporation other than the licensed
18corporation conducting the races, the applicable percentage
19shall be distributed one-half to the horsemen's organization
20representing a majority of owners and trainers at the
21racetrack or in accordance with the practice of the parties.

22(5) Where the racing meeting is being conducted to be
23used for the payment of purses at the racetrack and one-half
24to the horsemen's organization, or in accordance with the
25practice of the parties, at the racetrack within the primary
26market area to be used for the payment of purses at the
27racetrack.

28Nothing in this subsection shall be construed to prevent a
29licensed corporation from agreeing to distribute amounts greater
30than the percentages set forth in this subsection. However, if

1no alternative agreement has been reached, the total percentage
2paid for purses under this subsection shall be in accordance
3with the minimum percentages set forth in this subparagraph.

4(f) Other payments.--Notwithstanding any other provision of
5this act, a nonprimary location may be established within the
6primary market area of a racetrack by agreement between the
7licensed corporation and the horsemen's organization
8representing a majority of the owners and trainers at the
9racetrack specifying the total percentage of handle wagered at
10the nonprimary location to be distributed to the horsemen's
11organization, or in accordance with the practice of the parties,
12to be used for the payment of purses at that racetrack. If no
13agreement is reached covering the locations, the total
14percentage to be paid for purses shall be the same as that
15applied to on-track wagering at the racetrack located within the
16primary market area.

17(g) Definitions.--The following words and phrases when used
18in this section shall have the meanings given to them in this
19subsection, unless the context clearly indicates otherwise:

20"Primary market area of a racetrack." The land area included
21in a circle drawn with the racetrack as the center and a radius
22of 35 air miles.

23"Secondary market area of a racetrack." The land area
24included in a circle drawn with the racetrack as the center and
25a radius of 50 air miles, but not including the primary market
26area of the racetrack.

27Section 219-A. Books and records of pari-mutuel wagering.

28Every Category 1 licensed facility that conducts a horse
29racing meeting at which pari-mutuel wagering is authorized,
30shall keep books and records so as to clearly show by separate

1record the total amount of money contributed to every pari-
2mutuel pool. The Department of Revenue or its authorized
3representative shall have access to all books and records for
4the purpose of examining the same and ascertaining whether the
5proper amount due to the State is being paid by the licensed
6corporation.

7Section 220-A. Filing of certain agreements with the board.

8A corporation licensed to conduct horse racing meetings where
9pari-mutuel wagering is permitted shall promptly after entering
10any lease agreement concerning any concession, labor management
11relation, hiring of designated classes of officers, employees or
12contractors specified by the board or any other contract or
13agreement as the board may prescribe, file with the board a true
14and correct copy.

15Section 221-A. Retention percentages for pari-mutuel pools.

16(a) Distribution.--A licensed corporation shall distribute
17the money in any pari-mutuel pool to the holders of winning
18tickets under the following requirements:

19(1) all tickets shall be presented for payment before
20the first day of April of the year following the year of
21their purchase;

22(2) (i) seventeen percent of the money plus the
23breakage from regular wagering pools shall be retained by
24the licensed corporations for further distribution under
25section 222-A;

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

1licensed corporations for further distribution under
2section 222-A;

3(iii) twenty percent of the money plus the breakage
4from the exacta, daily double, quinella and other
5wagering pools involving two horses each racing day shall
6be retained by the licensed corporations for further
7distribution under section 222-A; or

8(iv) at least 26% but no more than 35% of the money
9plus the breakage from the trifecta or other wagering
10pools involving more than two horses in one or more races
11each racing day shall be retained by the licensed
12corporations for further distribution under section
13222-A;

14(3) except as provided for in section 222-A(d.1), a
15corporation may retain less than 17%, 19% or 20% of the money
16in the wagering pools under subparagraphs (i), (ii) and (iii)
17or less than 26% of the money in the wagering pools under
18subparagraph (iv) upon approval from the board;

19(4) every corporation may retain more than 25% but no
20more than 35% of the money in the wagering pools under
21subparagraph (iv) upon approval from the board; and

22(5) all money remaining in the wagering pools described
23under paragraphs (2), (3) and (4) shall be distributed to the
24holders of winning tickets.

25(b) Definition.--As used in this section, the term
26"breakage" shall mean the odd cents of redistributions to be
27made on contributions to pari-mutuel pools exceeding a sum equal
28to the next lowest multiple of ten.

29Section 222-A. Distribution of money retained from pari-mutuel
30pools and taxation.

1(a) Fund.--There is hereby established the State Racing Fund
2in the State Treasury. A licensed corporation that conducts
3horse racing meetings shall pay a tax through the Department of
4Revenue for credit to the State Racing Fund. The tax imposed on
5the licensed corporation shall be a percentage tax of 1.5% on
6the amount wagered each racing day and be paid from the money
7retained under section 221-A.

8(a.1) Payment periods.--At the close of each day of racing,
9a corporation licensed to conduct horse racing meetings shall
10pay out of the money retained on that day under section 221-A,
11through the Department of Revenue for credit to the State Racing
12Fund.

13(b) Distribution.--The board shall appropriate money in the
14State Racing Fund in the following manner:

15(1) An amount equivalent to 1% of the amount wagered
16each racing day at thoroughbred horse racing meetings shall
17be paid by the board from the State Racing Fund through the
18Department of Revenue for credit to the Pennsylvania Breeding
19Fund.

20(2) An amount equivalent to 1.5% of the amount wagered
21each racing day at harness horse racing meetings shall be
22paid by the board from the State Racing Fund through the
23Department of Revenue for credit to the Pennsylvania Sire
24Stakes Fund.

25(c) Breakage for horse racing meetings.--All breakage
26retained under section 221-A by licensed corporations that
27conduct horse racing meetings shall be distributed in the
28following manner:

29(1) Seventy-five percent of the breakage shall be paid
30to the Department of Revenue for credit to the State Racing

1Fund.

2(2) Twenty-five percent of the breakage shall be
3retained by the licensed corporations to be used solely for
4purses to the horsemen. All breakage money due licensed
5corporations for the purses for claiming and nonclaiming
6races under this paragraph but not expended as a result of a
7race cancellation shall be carried forward to the next
8succeeding meet by the licensed corporations to be used for
9claiming and nonclaiming races which restrict entry to
10Pennsylvania-sired horses under the provisions of this
11paragraph.

12(d) State Racing Fund.--An amount equivalent to 1% of the
13amount wagered at each racing day at horse racing meetings as
14set forth in section 221-A(a)(4) and (5) shall be paid through
15the Department of Revenue for credit to the State Racing Fund.

16(e) Remaining money.--All remaining money retained under
17section 221-A and not distributed under the preceding
18subsections shall be kept by the licensed corporations.

19Section 223-A. Pennsylvania Breeding Fund.

20(a) Establishment.--There is hereby created a restricted
21account in the State Racing Fund to be known as the Pennsylvania
22Breeding Fund which shall consist of the money deposited under
23the provisions of section 222-A and which shall be administered
24by the board.

25(b) Awards from the Pennsylvania Breeding Fund.--The board
26shall provide for awards as follows:

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

1award of 20% of the purse earned by every registered
2Pennsylvania-bred thoroughbred horse sired by a nonregistered
3sire, which finishes first, second or third in any race
4conducted by a licensed corporation under this act shall be
5paid to the breeder of said registered Pennsylvania-bred
6thoroughbred horse. A single award under this paragraph may
7not exceed 1% of the total annual fund money.

8(2) An award of 10% of the purse earned by any
9Pennsylvania-bred thoroughbred horse which finishes first,
10second or third in any race conducted by a licensed
11corporation under this act shall be paid to the owner of the
12registered Pennsylvania sire which regularly stood in
13Pennsylvania at the time of conception of said Pennsylvania-
14bred thoroughbred horse. A single award under this paragraph
15may not exceed 0.5% of the total annual fund money.

16(3) An award of 10% of the purse earned by any
17registered Pennsylvania-bred thoroughbred horse which
18finishes first in any race conducted by a licensed
19corporation under this act not restricting entry to
20registered Pennsylvania-bred thoroughbred horses shall be
21paid to the licensed owner of said registered Pennsylvania-
22bred thoroughbred horse at the time of winning. A single
23award under this paragraph may not exceed 0.5% of the total
24annual fund money.

25(c) Purses for Pennsylvania Breeding Fund stakes races.--Up
26to one-fifth of the total of the estimated fund money remaining
27each year after the deduction of expenses related to the
28administration and development of the Pennsylvania Breeding Fund
29program and the payment of breeder, stallion and owner awards,
30shall be divided among the licensed corporations that conduct

1thoroughbred horse racing meetings in direct proportion to the
2rate by which each licensed corporation generated the fund money
3during the previous year to be used solely for purses for
4Pennsylvania Breeding Fund stakes races which restrict entry to
5registered Pennsylvania-bred thoroughbred horses.

6(d) Remaining funds.--The fund money remaining following
7disbursements as directed in subsection (b)(1), (2) and (3) and
8subsection (c) shall be divided among the licensed corporations
9that conduct thoroughbred horse racing meetings in direct
10proportion to the rate by which each licensed corporation
11generated the fund money during the previous year to be used for
12purses as follows:

13(1) Claiming and nonclaiming Pennsylvania Breeding Fund
14races which restrict entry to registered Pennsylvania-bred
15thoroughbred horses.

16(2) Claiming and nonclaiming Pennsylvania Breeding Fund
17races which prefer registered Pennsylvania-bred thoroughbred
18horses as starters. In these races, should eight or more
19registered Pennsylvania-bred horses pass the entry box, the
20race shall be considered closed to horses other than
21registered Pennsylvania-bred thoroughbred horses.

22(e) Funds not expended.--Pennsylvania Breeding Fund money
23due licensed corporations, as outlined in subsections (c) and
24(d), but not expended during the calendar year may be carried
25forth in the fund on the account of the licensed corporations to
26be expended during the succeeding year in addition to the
27corporations' fund money annually due them for purses.

28(f) Pennsylvania Horse Breeders' Association.--The board may 
29contract with the Pennsylvania Horse Breeders' Association as 
30the sole responsible body for the registration and records of
 

1Pennsylvania-bred horses. The Pennsylvania Horse Breeders' 
2Association shall advise the board when called upon and shall 
3determine the qualifications for Pennsylvania-bred thoroughbred 
4horses and Pennsylvania sires. Its registration and record facts 
5are hereby declared as official Pennsylvania records. At the 
6close of each calendar year, the Pennsylvania Horse Breeders' 
7Association, through the Pennsylvania Breeding Fund Advisory 
8Committee, shall submit to the board for its approval an 
9itemized budget of projected expenses for the ensuing year 
10relating to the administration and development of the 
11Pennsylvania Breeding Fund program. The board, on no more than a 
12quarterly basis, shall reimburse from the fund the Pennsylvania 
13Horse Breeders' Association for those expenses actually incurred 
14in the administration and development of the Pennsylvania
15Breeding Fund program.

16Section 224-A. Pennsylvania Sire Stakes Fund.

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

22(b) Distribution and use of funds.--Funds shall be
23distributed as follows:

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

1fund account at the end of the calendar year of the enactment
2of this subsection, together with the interest earned on that
3money, shall be distributed to licensed corporations that
4conduct harness horse racing meetings to be used in the next
5succeeding calendar year following the next succeeding
6calendar year as purse money for Pennsylvania-sired horses.

7(2) After deduction of sufficient funds to cover the
8board's cost of administration, 80% of all remaining money in
9the Pennsylvania Sire Stakes Fund at the end of the calendar
10year shall be distributed to licensed corporations that
11conduct harness horse racing meetings to be used as purse
12money for Pennsylvania-sired horses. The board may then
13allocate up to a total of and not exceeding 40% of the total
14amount to be distributed to licensed corporations in a
15calendar year for use for a series of championship final
16races at the race tracks of licensed corporations that
17conduct harness horse racing meetings. The board shall
18allocate the money to these championship final races in an
19equal amount for each sex, age and gait for two-year-old and
20three-year-old trotters and pacers. The board shall determine
21conditions establishing eligibility to these final events. No
22pari-mutuel harness track shall be awarded more than 50% of
23the championship final races in any calendar year. The board
24shall schedule these final events so as to evenly alternate
25classes at each race track each year. After the allocation
26for the championship final races has been determined, the
27remaining funds to be distributed to licensed corporations
28that conduct harness horse racing meetings shall be divided
29equally among the licensed corporations. Each licensed
30corporation shall divide the funds received equally for each

1of:

2(i) four two-year-old races; one pace for colts, one
3pace for fillies, one trot for colts and one trot for
4fillies; and

5(ii) four three-year-old races; one pace for colts,
6one pace for fillies, one trot for colts and one trot for
7fillies.

8(c) Purse money.--Each allotment shall provide purse money
9for the respective races. The purse money shall be in addition
10to any entry fees or other funds available.

11(d) Entry restriction.--Entry for these races shall be
12limited to harness horses which were sired by a standardbred
13stallion regularly standing in Pennsylvania and each race shall
14be designated a Pennsylvania sire stakes race. The board shall
15make the provisions and regulations as it shall deem necessary
16for the proper administration of the entry restriction.

17Section 225-A. Fair Fund proceeds.

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

1for the specific purposes referenced above or otherwise the
2allotment shall be retained in the fund. The Department of
3Agriculture shall cause to be carried out as its responsibility
4a yearly inspection of each track facility and shall advise each
5operating fair of track maintenance which is necessary to ensure
6adequate racing surface during the course of scheduled fairs and
7racing events. If it is the opinion of the Department of
8Agriculture that the fair society or event sponsor is not
9adequately financing track maintenance through its permissible
10reimbursement under this paragraph, the board shall so surcharge
11the Fair Fund account of the fair society or event sponsor to
12effectuate the remediation.

13Section 226-A. Hearing of refusal or revocation of license.

14If the board refuses to grant any license applied for under
15this act, or shall revoke or suspend any license granted, the
16applicant or licensee may demand, within ten days after notice
17of the decision of the board, a hearing before the board. The
18provisions of 2 Pa.C.S. Chs. 5 Subch. A (relating to practice
19and procedure) and 7 Subch. A (relating to judicial review)
20shall apply.

21Section 227-A. (Reserved).

22Section 228-A. Prohibition of wagering by certain officials,
23employees and minors.

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

1permit any person who is under 18 years of age to attend a horse
2racing meeting conducted by the corporation unless the person is
3accompanied by a parent or guardian. This section shall not be
4construed to prohibit persons under 18 years of age, who are
5legally employed, from being upon the race track premises for
6the sole purpose of engaging in the performance of their duties
7as employees. The board shall, by rule, provide for enforcement
8of this section.

9Section 229-A. State horse racing and harness horse racing
10veterinarians and State stewards.

11(a) General rule.--The board shall have the authority to
12contract with licensed veterinarians and stewards to serve at
13each meeting conducted by a corporation licensed by the board.
14The board shall have the authority to employ other individuals
15as shall be necessary to carry out the responsibilities of this
16section.

17(b) Costs and compensation.--The costs and compensation of
18the horse racing veterinarians, State stewards and other
19individuals employed shall be fixed and paid by the board.

20(c) Steward requirements.--The board shall establish a job
21description and professional criteria for stewards to assure
22that they have a working knowledge of the horse racing industry.

23Section 230-A. (Reserved).

24Section 231-A. Free passes, cards or badges.

25(a) Issuance.--A licensed corporation may not issue a free
26pass, card or badge, without admission tax except to:

27(1) an officer, employee or shareholder of the
28corporation conducting the racing meeting;

29(2) a member, officer or employee of the board;

30(3) a member of a horse racing association of another

1state or foreign country;

2(4) a public officer engaged in the performance of his
3duty;

4(5) a person employed and accredited by the press to
5attend the meeting; or

6(6) an owner, stable manager, trainer, jockey,
7concessionary or other person whose duties require a presence
8at the race track.

9(b) Promotions and discounts.--The board may allow a
10licensed corporation to issue a free pass, card or badge for a
11special promotional program and seasonal discount ticket
12program, so long as the corporation obtained approval from the
13board. The admission tax under section 208-A must be imposed on
14the price of the seasonal discount tickets sold by a licensed
15corporation.

16(c) Rules and regulations.--The issuance of tax-free passes,
17cards or badges must be under the rules and regulations of the
18board.

19(d) List.--Except persons admitted under an approved special
20promotional program or seasonal discount ticket program, a list
21of the persons to whom a free pass, card or badge is issued must
22be filed with the board.

23Section 232-A. (Reserved).

24Section 233-A. Monitoring of wagering on video screens.

25A corporation licensed to conduct pari-mutuel betting shall
26display on video screens the approximate odds or approximate
27will-pays on each horse for each race as well as a combination
28of races including, but not limited to, quinellas, exactas,
29perfectas and any other combination or pool of races. A display
30of approximate odds or approximate will-pays is not required

1where the wager is on horses in four or more races, such as
2"Pick 4, Pick 5 or Pick 6." In addition to displaying the amount
3of money wagered, the approximate odds or approximate will-pays
4on each horse or combination of horses must be shown on video
5screens in each wagering division. For trifectas, in lieu of
6odds or approximate will-pays, the amount of money being wagered
7on each horse to win in the trifecta pool must be displayed on
8video screens separately from any other information. The above
9required information must be displayed from the opening of bets
10or wagering and be continually displayed until the wagering is
11closed. At least one video screen in each wagering division
12shall display the amount of money wagered on each horse involved
13in a trifecta pool.

14Section 234-A. Simulcasting.

15(a) General rule.--The board shall permit intrastate
16simulcasting of live racing.

17(b) Simulcast signal.--The simulcast signal shall be
18encoded, and the racetrack receiving the simulcast signal may
19not send the signal anywhere other than a public location
20authorized under section 218.1-A or 218.2-A.

21(c) Forms of pari-mutuel wagering.--The forms of pari-mutuel
22wagering described in section 221-A are allowed on a race to be
23televised by simulcasting under this section.

24(d) Regulations.--The board may promulgate regulations on
25wagering and the operation of a race.

26(e) Computation of money wagered.--The money wagered by a
27patron on a race must be computed in the amount of money wagered
28each racing day for purposes of taxation under section 222-A.

29(f) Between thoroughbred and harness horse racetracks.--If a
30simulcast is between a thoroughbred racetrack and a harness

1horse racetrack, the board has jurisdiction. An approval
2required under this section must be received from the board,
3provided that if an agreement is not reached between the
4organization representing the horsemen, the licensed corporation
5may petition the court of common pleas in the county in which
6the licensed corporation racetrack is located. The court of
7common pleas may direct the organization representing the
8horsemen to approve the simulcast agreement upon good cause
9shown by the licensed corporation that failure to consent would
10be detrimental to the Pennsylvania racing industry. The board
11may then authorize the simulcasting if the simulcasting will
12have a significant value to the Pennsylvania racing industry.

13(g) Definition.--As used in this section, the term "racing
14day" consists of a minimum of eight live races, except at
15thoroughbred tracks on Breeders' Cup Event Day.

16Section 235-A. Commingling.

17(a) Applicability.--This section is applicable only to
18licensed thoroughbred racing corporations.

19(b) Race secretary.--The race secretary shall receive
20entries and declarations as an agent for the licensed
21corporation for which the race secretary acts. The race
22secretary or an individual designated by the licensed
23corporation may receive stakes, forfeits, entrance money, jockey
24fees and other fees, purchase money in claiming races and other
25money that can properly come into the race secretary's
26possession as an agent for the licensed corporation for which
27the race secretary or designee is acting.

28(c) Horsemen's Account.--A licensed corporation shall
29maintain a separate account, called a Horsemen's Account. Money
30owed to owners in regard to purses, stakes, rewards, claims and

1deposits shall be deposited into the Horsemen's Account. Funds
2in the account are recognized and denominated as being the sole
3property of owners. Deposited funds may not be commingled with
4funds of the licensed corporation unless a licensed corporation
5established an irrevocable clean letter of credit with an 
6evergreen clause in favor of the organization which represents a 
7majority of the owners and trainers racing with the licensed 
8corporation. The minimum amount of the credit must be the
9greater of $1,000,000 or 110% of the highest monthly balance in
10the Horsemen's Account in the immediate prior year. To calculate
11the monthly balance in the Horsemen's Account, the sum of the
12daily balances shall be divided by the number of days in the
13month. The evergreen clause must provide that:

14(1) thirty days prior to the expiration of the letter of
15credit, the financial institution can elect not to renew the
16letter of credit;

17(2) upon an election under paragraph (1), the financial
18institution must notify the designee of the organization that
19represents a majority of the owners and trainers racing with
20the licensed corporation, by registered mail, return receipt
21requested, of the election not to renew; and

22(3) the financial institution will honor the letter of
23credit for six months after expiration.

24Purse money earned by owners shall be deposited by the licensed
25corporation in the Horsemen's Account within 48 hours after the
26result of the race in which the money was earned has been
27declared official and the purse has been released by the board.

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

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

3(e) Examination, access and records.--The Horsemen's Account
4and the investment and deposit schedules relating to the account
5are subject to examination, at reasonable times, by a designee
6of the organization which represents a majority of the owners
7and trainers racing with the licensed corporation and by the
8board. The bookkeeper shall provide each owner with access, at
9reasonable times during a racing day, to the amount of funds in
10the Horsemen's Account credited to that owner. At the close of a
11horse racing meeting, the bookkeeper shall mail to each owner a
12record of deposits, withdrawals and transfers affecting the
13amount of funds in the Horsemen's Account credited to that
14owner.

15(f) Auditing and monthly statements.--The Horsemen's Account
16shall be audited periodically as deemed appropriate by the
17board. There shall be at least one audit per year. Monthly
18statements shall be provided to the designee of the organization
19which represents a majority of the owners and trainers racing
20with the licensed corporation.

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

1month must be earned in an amount equal to the Federal Reserve
2Discount Rate on the first day of the month.

3Section 236-A. Harness horse racing purse money.

4A licensed harness horse racing association must place on
5deposit with the board by March 1 of each year an irrevocable
6letter of credit equivalent to its average weekly purse total
7from the immediate prior year. The board shall hold the letter
8of credit in trust for the harness horsemen racing at that
9licensed corporation if the purse checks are not issued or
10insufficient funds are available to cover the purse checks.

11Section 237-A. (Reserved).

12Section 238-A. Agricultural society horse racing.

13The Department of Agriculture shall have jurisdiction over
14and shall promulgate regulations for the proper administration
15of horse racing conducted by a county agricultural society or an
16independent agricultural society, as provided for under section
175(1)(iii) and (iv) of the act of July 8, 1986 (P.L.437, No.92),
18known as the Pennsylvania Agricultural Fair Act.

19Section 4. Section 301 of the act is amended to read:

20Section 301. Mandatory requirements for medication rules.

21(a) [The commissions shall have in effect at all times when]
22When a licensed corporation conducts a horse racing meeting with
23pari-mutuel wagering the board shall have in effect rules or
24regulations to control the use and administration of any
25medication and the use and administration of any device that
26affects the performance of a race horse. The [commissions] board
27may establish permitted tolerance levels and therapeutic dose
28allowances for all medication to be used or administered to a
29race horse.

30(b) The [commissions] board shall establish in their rules

1or regulations penalty provisions for the violation of these
2rules or regulations.

3Section 5. Section 302(a) and (c) of the act, amended May
416, 1986 (P.L.205, No.63), are amended to read:

5Section 302. Establishment of the Pennsylvania Race Horse
6Testing Program.

7(a) There is hereby established the Pennsylvania Race Horse
8Testing Program. The program shall be administered by [a
9management committee composed of the two chairpersons of the
10commissions, the Secretary of Agriculture and two persons
11appointed by the Governor. One person appointed by the Governor
12must be a doctor of veterinary medicine or a veterinary medical
13doctor and a member of the faculty of a school of veterinary
14medicine located within this Commonwealth and the other person
15must be employed within the private sector and have a background
16in biological and/or chemical laboratory management. The program
17is placed in and made a part of the Department of Agriculture]
18the board. All costs of the program shall be paid by the
19[commissions] fees collected under section 304. [Subject to all
20provisions of the act of April 9, 1929 (P.L.177, No.175), known
21as "The Administrative Code of 1929," that apply to the
22department, the management committee shall appoint and direct
23all personnel as necessary, establish a facility or contract for
24the provision of testing services, acquire all necessary
25equipment and supplies and adopt all necessary procedures.]

26* * *

27[(c) In order to evaluate the effectiveness of testing
28services performed by personnel of the Department of Agriculture
29and determine whether the manner in which these services are
30provided, the tests utilized and tolerance levels permitted

1should be modified, the commissions shall equally fund a
2contracted evaluation of existing laboratory services to be
3conducted by a nongovernmental entity with documented expertise
4to accurately evaluate existing laboratory services and
5formulate recommendations for improvement of the testing
6program. Upon review of the evaluation results, the department
7may implement in consultation with the management committee a
8program to improve laboratory services, including, if necessary
9and appropriate, the selection of a contractor or contractors to
10provide testing services. This study shall be completed on or
11before January 1, 1987, and copies provided to the Governor, the
12President pro tempore of the Senate, the Speaker of the House of
13Representatives and the members of the State Government
14Committees of the Senate and the House of Representatives within
1515 working days.]

16Section 6. Section 304 of the act is amended to read:

17Section 304. Costs of the enforcement of the medication rules
18or regulations.

19[All costs for the collection and testing samples for any
20manner of medication shall be paid by the commissions.] The
21board shall establish a fee schedule to be charged to horse
22owners for costs of the collections and testing for any manner
23of medication rules or regulation enforcement. The costs of
24collections and testing shall include the equipment, supplies
25and facilities, except holding barns or stables, to be located
26at race horse meeting facilities, grounds or enclosures or at
27other locations designated by the board, which shall be
28published in the Pennsylvania Bulletin and shall be in effect 60
29days after being published.

30Section 7. This act shall take effect in 60 days.

<-1Section 1. Section 102 of the act of December 17, 1981
2(P.L.435, No.135), known as the Race Horse Industry Reform Act,
3amended or added May 16, 1986 (P.L.205, No.63) and November 30,
41988 (P.L.1090, No.127), is amended to read:

5Section 102. Definitions.

6The following words and phrases when used in this act shall
7have, unless the context clearly indicates otherwise, the
8meanings given to them in this section:

9"Air mile." A unit of distance equal to 1,852 kilometers or
105,280 feet for purposes of this act.

11"Board." The Pennsylvania Gaming Control Board.

12"Bureau." The Bureau of Horse Racing.

13"Business entity." A person, corporation, business trust,
14estate, limited liability partnership or other form of legal
15business entity.

16"Clean letter of credit." A letter of credit which is
17available to the beneficiary against presentation of only a
18draft or receipt.

19["Commissions." The State Horse Racing Commission and the
20State Harness Racing Commission.

21"Commissioners." The persons appointed by the Governor and
22confirmed by the Senate who serve on the State Horse Racing
23Commission or the State Harness Racing Commission and who
24administer the applicable provisions of this act.]

25"Evergreen clause." A term in a letter of credit providing
26for automatic renewal of the letter of credit.

27"Harness horse racing." A form of standardbred horse racing
28in which the horses participating are attached "in harnesses" to
29a sulky or other similar vehicle, at a specific gait, either a
30trot or pace, and the vehicle is being driven by a person.

1"Horse racing." Harness horse racing and thoroughbred horse
2racing.

3"Horseman's organization." A trade association which
4represents the majority of owners and trainers who own and race
5horses at a licensed racetrack.

6"Irrevocable clean letter of credit." A clean letter of
7credit which cannot be canceled or amended unless there is an
8agreement to cancel or amend among all parties to the letter of
9credit.

10"Licensed [corporations] business entity." The [corporations
11that have] business entity that has obtained a license from
12[either] the former State Horse Racing Commission [or the], the 
13former State Harness Racing Commission or the board to conduct
14[thoroughbred or harness] horse race meetings [respectively]
15with pari-mutuel wagering.

16"Nonprimary location." Any facility in which pari-mutuel
17wagering is conducted pursuant to this act other than the
18primary racetrack location.

19"Nonprimary location statement." The written statement
20pursuant to this act submitted to the appropriate commission by
21a licensed corporation planning to establish a nonprimary
22location.

23"Primary market area of a racetrack." The land area included
24in a circle drawn with the racetrack as the center and a radius
25of 35 air miles.

26"Racetrack." The physical facility where a licensed
27corporation conducts thoroughbred or harness race meetings
28respectively with pari-mutuel wagering.

29"Racetrack enclosure." For purposes of this act, the term
30"racetrack enclosure," with respect to each licensed

1corporation, shall be deemed to include at least one primary
2racetrack location at which horse [race] racing meetings
3authorized to be held by the licensed [corporation] business 
4entities are conducted, and all primary, nonprimary, contiguous
5and noncontiguous locations of the licensed [corporation]
6business entity which are specifically approved by the
7[appropriate commission] board for conducting the pari-mutuel
8system of wagering on the results of horse [races] racing held
9at such meetings or [race] racing meetings conducted by another
10licensed [corporation] business entity or televised to such
11locations by simulcasting.

12"Secondary market area of a racetrack." The land area
13included in a circle drawn with the racetrack as the center and
14a radius of 50 air miles, not including the primary market area
15of the racetrack.

16"Simulcast." The transmission of live electronically
17televised video/audio races from the host racetrack to the race
18track receiving the television transmission.

19"Thoroughbred horse racing." The form of horse racing in
20which each participating horse is mounted by a jockey, is duly
21registered with The Jockey Club of New York and engages in horse
22racing, which may include a steeplechase or hurdle race.

23"Totalisator." A computer system used to pool wagers, record 
24sales, calculate payoffs and display wagering data on a display 
25device that is located at a pari-mutuel facility or nonprimary 
26location.

27Section 2. Chapter 2 of the act is repealed:

28[CHAPTER 2

29STATE HORSE RACING COMMISSION AND STATE HARNESS

30RACING COMMISSION

1Section 201. Establishment of the commissions.

2(a) The State Horse Racing Commission is hereby established
3as a departmental administrative commission within the
4Department of Agriculture. The commission shall have general
5jurisdiction over all pari-mutuel thoroughbred horse racing
6activities in the Commonwealth and the corporations engaged
7therein. For the purposes of this act, "thoroughbred horse
8racing" means that form of horse racing in which each
9participating horse is mounted by a jockey, is duly registered
10with the Jockey Club, New York, New York and engages in races on
11the flat. Thoroughbred horse racing may include a steeplechase
12or hurdle race. The commission shall consist of three members
13who shall be appointed by the Governor, by and with the advice
14and consent of the Senate. Each commissioner shall hold office
15for a term of three years and until a successor is qualified.

16(b) The State Harness Racing Commission is hereby
17established as a departmental administrative commission within
18the Department of Agriculture. The commission shall have general
19jurisdiction over all pari-mutuel harness racing activities in
20the Commonwealth and the corporations engaged therein. The
21commission shall consist of three members who shall be appointed
22by the Governor, by and with the advice and consent of the
23Senate. Each commissioner shall hold office for a term of three
24years and until a successor is qualified.

25(c) The commissioners shall be reimbursed for documented
26expenses incurred in the performance of their official duties.
27The commissioners shall be paid $150 per diem for performing
28their duties as directed by the Secretary of Agriculture. One of
29the commissioners for each commission shall be appointed by the
30Governor as chairperson. The commissioner appointed by the

1Governor as chairperson shall serve in that position at the
2pleasure of the Governor. The Secretary of Agriculture or his
3designee shall be a nonvoting ex officio member of the
4commissions. The commissions shall meet at least once a month
5and at other times as the Secretary of Agriculture or the
6commission chairperson deems necessary. Adequate public notice
7of the time and place of the meetings shall be given. A
8commissioner who fails to attend three consecutive meetings
9shall be subject to removal. A commissioner shall be excused
10from meetings due to illness or death of an immediate family
11member. All commissioners shall be licensed under the provisions
12of section 213.

13(d) Each commission shall engage an executive secretary,
14deputies, secretaries, officers and representatives as it may
15deem necessary, who shall serve during its pleasure. The
16commissions shall also engage other employees as they see fit
17and whose duties shall be prescribed by the commissions and
18whose compensation shall be fixed by the commissions within the
19appropriations available. Legal counsel for the commissions
20shall be appointed in accordance with the act of October 15,
211980 (P.L.950, No.164), known as the "Commonwealth Attorneys
22Act." Each commission shall be subject to the provisions of the
23act of April 9, 1929 (P.L.177, No.175), known as "The
24Administrative Code of 1929," as to classification and
25compensation for all its employees.

26(e) It shall be the duty of the executive secretary to keep
27a full and faithful record of the proceedings of the
28commissions, preserve at the general office of the commissions
29all books, maps, documents and papers entrusted to the executive
30secretary's care, prepare for service the papers and notices as

1may be required by the commissions and perform other duties as
2the commissions may prescribe. It shall be the duty of the
3executive secretary to keep, at the offices of the commissions,
4a docket setting forth the names of all stockholders in all
5corporations licensed under this act, the number of shares held
6by each stockholder and the date on which each shareholder
7acquired stock in the licensed corporation. The docket shall be
8open for public inspection. It shall be the duty of the
9executive secretary to appear before the Appropriations
10Committees of the Senate and the House of Representatives for
11budgetary review and recommendations.

12(f) The commissions or designated officers, employees or
13agents of the commissions shall have the power to administer
14oaths and examine witnesses and may issue subpoenas to compel
15attendance of witnesses and production of all relevant and
16material reports, books, papers, documents, correspondence and
17other evidence. The commissions shall, annually, make a full
18report to the Secretary of Agriculture of their proceedings for
19the preceding calendar year and suggestions and recommendations
20as they see fit. The commissions shall exercise their powers and
21duties in accordance with the provisions of "The Administrative
22Code of 1929."

23(g) The terms and termination dates of the terms of the
24three commissioners who constitute the State Horse Racing
25Commission under the act of December 11, 1967 (P.L.707, No.331),
26referred to as the Pennsylvania Thoroughbred Horse Racing Law,
27shall continue under this act. Any commissioner whose term has
28already expired on the effective date of this act and who has
29not been replaced by a new member or has not been confirmed for
30another term, shall continue in his or her present status until

1replaced by a new member or confirmed for another term.

2(h) The terms and termination dates of the terms of the
3three commissioners who constitute the State Harness Racing
4Commission under the act of December 22, 1959 (P.L.1978,
5No.728), referred to as the Pennsylvania Harness Racing Law,
6shall continue under this act. Any commissioner whose term has
7already expired on the effective date of this section and who
8has not been replaced by a new member or has not been confirmed
9for another term, shall continue in his or her present status
10until replaced by a new member or confirmed for another term.

11(i) All rules and regulations promulgated under the
12provisions of the Pennsylvania Thoroughbred Horse Racing Law and
13the Pennsylvania Harness Racing Law shall remain in effect
14except to the extent that they are in direct conflict with the
15provisions of this act. The commissions may amend, revise or
16alter these rules and regulations as they deem necessary.

17(j) All licenses issued under the provisions of section 11
18of the Pennsylvania Thoroughbred Horse Racing Law and under the
19provisions of section 9 of the Pennsylvania Harness Racing Law,
20shall remain in effect for the remainder of the term for which
21these licenses were issued. After these licenses have expired,
22all renewals or new licenses shall be issued under the
23provisions of this act.

24(k) All licenses issued to corporations under the provisions
25of section 7 of the Pennsylvania Thoroughbred Horse Racing Law
26and under the provisions of section 7 of the Pennsylvania
27Harness Racing Law, shall continue with the same force and
28effect and shall be governed by the provisions of section 209.

29Section 202. General powers of the commissions.

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

1to supervise all thoroughbred horse race meetings at which pari-
2mutuel wagering is conducted. The State Harness Racing
3Commission shall have the power to supervise all harness horse
4racing meetings at which pari-mutuel wagering is conducted. The
5commissions may adopt rules and regulations to effect the
6purposes and provisions of this act.

7(b) Without limiting the generality of the foregoing and in
8addition to its other powers:

9(1) Each commission shall have power to fix a minimum
10charge for admission to horse race meetings at which pari-
11mutuel wagering is conducted, but the minimum charge shall
12not be less than 50¢ for general admission, exclusive of
13taxes. The commissions shall have power to fix the charge for
14admission of soldiers, sailors and marines, in uniform, at
15one-half of the amount fixed for general admission, whether
16or not the one-half of the amount fixed is less than the
17minimum prescribed therein.

18(2) Each commission shall at all times have in effect
19rules and regulations as required under Chapter 3 regarding
20medication rules and enforcement provisions.

21(3) The rules of the commissions shall also provide that
22all winning pari-mutuel tickets must be presented for payment
23before April 1 of the year following the year of their
24purchase and failure to present the ticket within the
25prescribed period of time shall constitute a waiver of the
26right to participate in the award. After April 1 of the year
27following, all licensed corporations will forward to the
28State Treasurer through the Department of Revenue for credit
29to the State Racing Fund all funds so held for the uncashed
30tickets. Where it is shown to the satisfaction of the

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

18(4) The commissions may adopt a general promotion
19program to assist the licensed corporations in increasing
20their attendance and average daily handle. Any expenditures
21for a promotional program shall be authorized and approved in
22the same manner as other operational costs of the
23commissions.

24(5) In the event that a state bordering Pennsylvania
25enacts a wagering tax scheme that may place Pennsylvania
26horse race meetings at a competitive disadvantage in the
27purses that can be offered for horse races, a licensed
28corporation may petition the appropriate commission for an
29emergency financial grant to augment its purse structure. If
30the appropriate commission finds that the effect of the

1enacted wagering tax scheme of a bordering state is to place
2Pennsylvania horse race meetings at a competitive
3disadvantage in purse structure, the appropriate commission
4shall make an emergency financial grant to the petitioning
5licensed corporation for augmentation to its purse structure
6out of moneys that the commission has budgeted for this
7purpose; provided, however, that the Secretary of Agriculture
8and the Secretary of the Office of Budget and Administration
9have also agreed to the grant.

10(c) The State Harness Racing Commission shall have
11jurisdiction over and shall promulgate regulations as necessary
12for the proper administration of all racing conducted by a
13county agricultural society or an independent agricultural
14society, as provided for under section 5(1)(iii) and (iv) of the
15act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania
16Agricultural Fair Act."

17Section 203.

18(c) No corporation shall have the right to conduct any horse
19race meet except on obtaining a license from the appropriate
20commission and at the location or locations designated in its
21license or any amendment thereto or as approved at any time by
22the commission as the place or places at which it was proposed
23to conduct its business. This restriction shall not apply to any
24corporation whose racing plant or usefulness, in the discretion
25of the appropriate commissions, shall, for any reason beyond the
26control of the corporation, be totally destroyed or so
27substantially interfered with as to render same unfit for
28continued operation. Pending the rebuilding or restoration of
29its usefulness, or the making of the required repairs to the
30plant or the part destroyed or damaged, the commissions may

1license such corporation to conduct its horse race meetings at
2any other suitable location.

3Section 204. Filing of information concerning stock transfers;
4necessity for commissions' approval.

5(a) Whenever a transfer of stock comprising an interest of
65% or more in any licensed corporation, or comprising an
7interest of 5% or more in any corporation which leases to a
8licensed corporation the track facility at which it conducts
9pari-mutuel horse races or comprising an interest of 5% or more
10in any corporation which owns 25% or more of the stock of the
11licensed corporation shall be made, there shall be filed,
12simultaneously, with the corporation which issued such stock the
13following:

14(1) In duplicate, an affidavit executed by the
15transferee of the interest stating that he is to be the sole
16beneficial owner thereof, and whether or not he:

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

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

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

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

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

29If the transferee of the interest is not, or is not to be,
30the sole beneficial owner, there shall be annexed to the

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

7(2) In duplicate, an affidavit executed by each person
8for whom the interest is to be held by the transferee,
9setting forth whether or not the affiant:

10(i) has been convicted of a crime involving moral
11turpitude;

12(ii) has engaged in bookmaking or other forms of
13illegal gambling;

14(iii) has been found guilty of any fraud or
15misrepresentation in connection with racing or breeding;

16(iv) has been guilty of any violation or attempt to
17violate any law, rule or regulation of any racing
18jurisdiction, for which suspension from racing might be
19imposed in such jurisdiction; or

20(v) has violated any rule, regulation or order of
21the commissions.

22To each of the affidavits shall be annexed, and expressly
23stated in such affidavit, a true and complete copy of all the
24terms of the agreement pursuant to which the interest is to
25be held by the transferee, including a detailed statement of
26the interest of each person who is to have any interest
27therein. The corporation shall file with the appropriate
28commission one of each duplicate affidavits.

29(b) If, after the filing of any affidavit required to be
30filed, there shall be any change in the status of any affiant

1with respect to any of the matters set forth in subsection (a)
2(1) of the affidavit filed, the affiant shall file with the
3corporation with which his affidavit was so filed a new
4affidavit, executed by him in duplicate, setting forth the
5change of status and the corporation shall file one of these
6affidavits with the appropriate commission.

7(c) Whenever any change shall be made in the amount, nature
8or of the interest of any person having an interest of 5% or
9more in any corporation, or any new interest of 5% or more shall
10be created therein, without a transfer as provided, the record
11owner of the stock, and each person whose interest has been
12attempted to be changed or created, shall file with the
13corporation which issued the stock, in duplicate, affidavits as
14provided by subsection (a)(1) and (2), except that these
15affidavits need not include the matter referred to in subsection
16(a) unless then required pursuant to subsection (b) and one copy
17thereof shall be filed by the corporation with the appropriate
18commission.

19(d) If the appropriate commission determines that it is
20inconsistent with the public interest, convenience, or
21necessity, or with the best interest of racing generally, that
22any person continue to be a stockholder of record, or the
23beneficial owner of any interest in stock standing in the name
24of another in any licensed corporation or of any corporation
25which leases to such licensed corporation the track at which it
26conducts pari-mutuel horse racing or which owned 25% or more of
27the stock of the licensee, the appropriate commission shall have
28full power and authority to order each stockholder or beneficial
29owner to dispose of his stock or interest within a period of
30time to be specified by the appropriate commission, which period

1the appropriate commission shall have full power to extend.

2(e) If the commissions shall make any order or direction as
3provided in subsection (d), the person aggrieved shall be given
4notice of the time and place of a hearing before the appropriate
5commission, at which time the appropriate commission will hear
6the person in reference thereto.

7Section 205. Number of horse racing corporations.

8(a) No more than six corporations shall be licensed by the
9State Horse Racing Commission to conduct a pari-mutuel meet or
10meets. No corporation licensed under this act to conduct harness
11racing with pari-mutuel wagering or under the act of December
1222, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
13Harness Racing Law, shall be licensed to conduct thoroughbred
14horse racing with pari-mutuel wagering.

15(b) No more than five corporations shall be licensed by the
16State Harness Racing Commission to conduct a pari-mutuel meet or
17meets. No corporation licensed under this act to conduct
18thoroughbred horse racing with pari-mutuel wagering or under the
19act of December 11, 1967 (P.L.707, No.331), referred to as the
20Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to
21conduct harness horse racing with pari-mutuel wagering.

22Section 206. Responsibilities of the Department of Revenue.

23The Department of Revenue is charged with the financial
24administration of pari-mutuel wagering under this act, as
25supplemented by the rules and regulations of the commissions.
26The Department of Revenue shall have authority to prescribe the
27forms and the system of accounting to be employed, and through
28its representatives shall, at all times, have power of access
29to, and examination of, any equipment relating to such wagering.

30Section 207. Allocation of racing days.

1(a) Up to 125 but no less than 25 racing days shall be
2allocated to each licensed corporation conducting thoroughbred
3horse race meetings in any calendar year; except, that upon
4request, the State Horse Racing Commission may grant up to an
5additional 25 racing days over the 125 days to a licensed
6corporation in each calendar year, if racing meet schedules can
7accommodate these extra days. Whenever two or more corporations
8licensed to conduct racing at the same facility apply to the
9State Horse Racing Commission for an allocation of racing days
10at the same facility, the commission shall allocate the racing
11days in the following manner:

12(1) If there is an agreement between the licensed
13corporations as to the allocation of racing days then as
14provided for therein.

15(2) If there is no agreement between the licensed
16corporations as to the allocation of racing days, then
17equally between them.

18(b) No more than 125 racing days shall be allocated to each
19licensed corporation conducting harness horse race meetings in
20any calendar year. Every corporation shall hold its license
21under the provisions of section 209. The State Harness Racing
22Commission shall allocate the racing days in accordance with the
23following guidelines:

24(1) A licensed corporation that has an ownership
25interest in the facility at which the racing days are to be
26conducted shall be granted up to 125 racing days in any
27calendar year upon request to the State Harness Racing
28Commission. The State Harness Racing Commission shall grant
29all racing days requested by licensed corporations described
30in this paragraph before any other racing days are granted to

1any other licensed corporation that desires to conduct a meet
2at the same facility owned in part or in whole by a licensed
3corporation that also desires to conduct a meet there.

4(2) Whenever one or more licensed corporations that have
5an ownership interest in the facility at which the racing
6days are to be conducted apply to the State Harness Racing
7Commission for an allocation of racing days, the State
8Harness Racing Commission shall allocate an equal number of
9racing days to each licensed corporation or to each licensed
10corporation based upon an agreement between the licensed
11corporations as to the allocation of racing days.

12(3) Upon request the State Harness Racing Commission may
13grant up to an additional 25 racing days over the 125 racing
14days to a licensed corporation in each calendar year, and the
15commission may grant up to 50 additional days of racing if
16that corporation is the only corporation operating at the
17facility, if racing meet schedules can accommodate these
18extra racing days.

19(4) For purposes of this section, an ownership interest
20shall mean that a licensed corporation directly or through a
21parent or subsidiary has at least 35% equity interest in the
22track facility at which it conducts harness horse race
23meetings or is the primary tenant at such facility. For
24purposes of this subsection, a primary tenant shall be that
25licensed corporation, if any, which is a tenant conducting
26horse race meetings at a track facility at which no licensed
27corporation conducting horse race meetings has directly or
28through a parent or subsidiary at least a 35% equity interest
29in such facility, and if there is more than one such tenant
30at any such facility during the year prior to the year for

1which dates are requested, then among or between such tenants
2the primary tenant, if any, shall be designated by agreement
3among or between those licensed corporations which propose to
4conduct horse race meetings at the said track facility during
5the year for which dates are requested.

6(c) The commissions shall certify to the Secretary of the
7Department of Revenue within 20 days after the allocation of
8racing days to licensed corporations the following information:

9(1) the names and addresses of the corporations;

10(2) the names and addresses of the presidents and
11general managers of the corporations;

12(3) the names and locations of the facilities where the
13racing days are to be conducted;

14(4) the number of racing days allocated to each
15corporation; and

16(5) a numbered list of each racing day assigned to each
17calendar day of the year for the purposes of taxation.

18(d) If a racing day is cancelled by a licensed corporation
19for reasons beyond its control, the appropriate commission shall
20grant the licensed corporation the right to conduct that racing
21day in the same or the next ensuing calendar year, if schedules
22permit. The racing day for purposes of taxation under section
23222 shall be at the lowest tax rate at which the licensed
24corporation conducted a racing day during that year.

25Section 208. State admissions taxes.

26(a) Every corporation holding a thoroughbred horse race
27meeting under this act shall collect, in addition to the
28admission price of tickets sold or otherwise disposed of, for
29each meeting held by the corporation, a tax equivalent to 15% of
30the admission price, or 15¢ whichever is greater. In case of

1failure to collect the tax, the tax shall be imposed upon the
2corporation holding the race meeting. The tax shall be paid to
3the Department of Revenue within ten days of collection. The
4amounts collected shall be paid into the State Treasury to the
5credit of the State Racing Fund. Before any corporation liable
6to pay the tax shall hold any race meeting, or exercise any of
7the powers conferred by this act, the corporation shall pay all
8taxes due, and shall file a statement with the Department of
9Revenue containing the name of the place and stating the time
10when the races are to be held. Nothing in this section shall
11apply to a race meeting conducted by any state, county or other
12agricultural association. Retroactive to September 1, 1981 and
13thereafter, the admission tax shall be decreased to a tax
14equivalent to 10% of the admission price. Then on September 1,
151982 and thereafter, the admission tax shall be decreased to a
16tax equivalent to 5% of the admission price.

17(b) Every corporation holding a harness horse race meeting
18shall collect, in addition to the admission price of tickets
19sold or otherwise disposed of, for each such meeting held by the
20corporation, a tax equivalent to 5% of the admission price. In
21case of failure to collect the tax, the tax shall be imposed
22upon the corporation holding the race meeting. The tax shall be
23paid to the Department of Revenue within ten days after the
24close of each race meeting. The amounts collected shall be paid
25into the State Treasury to the credit of the State Racing Fund.
26Before any corporation liable to pay the tax shall hold any race
27meeting, or exercise any of the powers conferred by this act,
28the corporation shall pay all taxes due and file a statement
29with the Department of Revenue containing the name of the place
30and stating the time when the races are to be held. Nothing in

1this section shall apply to a race meeting conducted by any
2state, county or other agricultural association.

3(c) The Department of Revenue shall have the power to
4examine the books and records of the corporation conducting any
5horse race meeting and may hear testimony and take proofs and
6material for its information, or from any other data which shall
7be satisfactory to it. The Department of Revenue may order and
8state an account for the tax due the State, together with the
9expense of such examination. A penalty of 5% and interest at the
10rate of 1% per month from the due date to the date of payment of
11the tax shall be payable in case any tax imposed by this section
12is not paid when due.

13Section 209. Licenses for horse race meetings.

14(a) Any corporation desiring to conduct horse race meetings
15at which pari-mutuel wagering shall be permitted may apply to
16the appropriate commission for a license. The license gives its
17holder the privilege to conduct horse race meetings at which
18pari-mutuel wagering is permitted. The license does not give its
19holder a property right. If, in the judgment of the appropriate
20commission, the public interest, convenience or necessity will
21be served and a proper case for the issuance of the license is
22shown, the appropriate commission may issue the license. The
23license shall remain in effect so long as the licensed
24corporation complies with all conditions, rules and regulations
25and provisions of this act. A commission may revoke or suspend
26the license of any corporation, if the commission finds by a
27preponderance of the evidence that the corporation, its
28officers, employees or agents, has not complied with the
29conditions, rules, regulations and provisions of this act and
30that it would be in the public interest, convenience or

1necessity to revoke or suspend the license. A license is not
2transferable.

3(b) Every license shall be issued upon the following
4conditions:

5(1) A horse race meeting at which pari-mutuel wagering
6is conducted is subject to the supervision of and to the
7reasonable rules and regulations prescribed by the
8appropriate commission.

9(2) Pari-mutuel wagering conducted is also subject to
10the supervision of and to the reasonable regulations
11prescribed by the Department of Revenue. Any license may also
12be issued upon any other condition that the appropriate
13commission determines to be necessary or desirable to insure
14that the public interest, convenience or necessity is served.

15(3) The corporation can prove by a preponderance of the
16evidence that it has obtained the use of a facility to
17conduct horse race meetings. The proof may be demonstrated by
18documentation of an ownership interest in the facility or by
19a written lease for use of the facility. For purposes of this
20paragraph, an ownership interest shall mean that a licensed
21corporation directly or through a parent or subsidiary has at
22least a 35% equity interest in the track facility at which it
23conducts horse race meetings or is the primary tenant at such
24facility. For purposes of this paragraph, a primary tenant
25shall be that licensed corporation, if any, which is a tenant
26conducting horse racing meetings at a track facility at which
27no licensed corporation conducting horse race meetings has
28directly or through a parent or subsidiary at least a 35%
29equity interest in such facility, and if there is more than
30one such tenant at any such facility during the year prior to

1the year for which dates are requested, then among or between
2such tenants the primary tenant, if any, shall be designated
3by agreement among or between those licensed corporations
4which propose to conduct horse race meetings at the said
5track facility during the year for which dates are requested.

6(4) The corporation posts, in favor of the appropriate
7commission, a bond or irrevocable letter of credit in an
8amount equal to the sum of the corporation's average weekly
9payment, during active racing, into the State Racing Fund, as
10determined by the appropriate commission on the basis of the
11immediately preceding year, during the year for which dates
12are requested.

13(5) The licensed corporation prints in its racing
14programs the procedure for filing a complaint with the
15appropriate commission.

16(c) Applications for licenses shall be in the form
17prescribed by the appropriate commission and shall contain
18information, material or evidence as the appropriate commission
19may require. The term "racing week" shall include Sunday at the
20discretion of the licensed corporation.

21(d) In considering an application for a license to a
22corporation, the commissions may give consideration to the
23number of licenses already granted. No license shall be granted
24to any track located within ten miles of a State, county or
25other political subdivision fair conducting horse racing unless
26the association, corporation, society, political subdivision or
27State agency conducting the fair shall affirmatively waive
28objection to the issuance of the license for dates within the
29period.

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

1suspend a license to a corporation, if it shall determine that:

2(1) Any officer, director, member or stockholder of the
3corporation applying for a license or of any corporation
4which owns stock in or shares in the profits, or participates
5in the management of the affairs of the applicant, or which
6leases to the applicant the track where it shall operate:

7(i) has been convicted of a crime involving moral
8turpitude;

9(ii) has engaged in bookmaking or other forms of
10illegal gambling;

11(iii) has been found guilty of any fraud or
12misrepresentation in connection with racing or breeding;

13(iv) has been guilty of any violation or attempt to
14violate any law, rule or regulation of any racing
15jurisdiction, for which suspension from racing might be
16imposed in such jurisdiction; or

17(v) has violated any rule, regulation or order of
18the commissions.

19(2) The experience, character or fitness of any officer,
20director or stockholder of any of the corporations is such
21that the participation of the person in horse racing or
22related activities would be inconsistent with the public
23interest, convenience or necessity or with the best interests
24of racing. If the commission determines that the interest of
25any stockholder referred to in this paragraph or in paragraph
26(1) is insufficient to affect adversely the conduct of pari-
27mutuel horse racing by the corporation in accordance with the
28provisions of this act, the commissions may disregard the
29interest in determining whether or not to grant a license to
30the corporation.

1(3) The applicant is not the owner or the lessee of the
2track at which it will conduct pari-mutuel horse racing under
3the license applied for, or that any person, firm,
4association or corporation other than the applicant shares,
5or will share, in the profits of the applicant, other than by
6dividends as a stockholder, or participates, or will
7participate in the management of the affairs of the
8applicant.

9(4) The corporation does not have the use of a facility
10to conduct horse race meetings. Such use must be proved by a
11preponderance of the evidence. The proof may be demonstrated
12by documentation of an ownership interest in the facility or
13by a written lease for use of the facility.

14(5) A licensed corporation does not have proof of a
15written lease of a facility to conduct horse race meetings.
16Under this paragraph, the appropriate commission may suspend
17a license for a period of two years. After the expiration of
18the suspension, the appropriate commission may then revoke
19the license, if the licensed corporation has failed to
20contract for a facility at which to conduct horse race
21meetings.

22(6) A licensed corporation has commingled horsemen's
23funds in violation of section 235(c) or has refused to place
24on deposit a letter of credit under section 236.

25(f) The commissions shall also have power to refuse to
26grant, revoke or suspend a license:

27(1) To any corporation, the charter or certificate of
28incorporation of which shall fail to contain a provision
29requiring any stockholder, upon written demand of the
30corporation, to sell his stock to the corporation at a price

1to be fixed by the appropriate commission, provided the
2demand be made pursuant to written direction of the
3appropriate commission and from the date of the making of the
4demand prohibiting the transfer of the certificate of stock
5except to the corporation.

6(2) To any corporation which, having been a licensee,
7has failed, in the opinion of the appropriate commission, to
8properly maintain its track and plant in good condition or
9has failed to make adequate provision for rehabilitation and
10capital improvements to its track and plant.

11(g) Pending final determination of any question under this
12section, the commissions may issue a temporary license upon such
13terms and conditions as they see fit to effectuate the
14provisions of this act.

15(h) The commissions shall have power to direct that every
16certificate of stock of a licensed corporation shall bear a
17legend, plainly and prominently imprinted upon the face of the
18certificate, reading: "This certificate of stock is transferable
19only subject to the provisions of the 'Race Horse Industry
20Reform Act'." The provisions of this subsection shall not apply
21to stock heretofore issued by a licensed corporation under the
22provisions of the act of December 11, 1967 (P.L.707, No.331), as
23amended, and referred to as the Pennsylvania Thoroughbred Horse
24Racing Law or of the act of December 22, 1959 (P.L.1978,
25No.728), as amended, and referred to as the Pennsylvania Harness
26Racing Law.

27Section 210. Shareholders.

28(a) Each licensed corporation shall, once a year, provide
29the appropriate commission with a complete list of all its
30shareholders, indicating the number of shares by each

1shareholder.

2(b) It shall be the duty of each licensed corporation within
3ten days after any transfer of stock comprising an interest of
45% or more in such licensee, to notify the appropriate
5commission of the transfer.

6(c) Each certificate of stock issued by a licensed
7corporation to a shareholder having a 5% or greater interest
8shall have noted on the face thereof that the person whose name
9is indicated as the owner of such shares of stock by the
10certificate is the sole and absolute owner, and that he is not
11holding such shares of stock or any portion of such shares of
12stock represented by the certificate in trust for any person,
13partnership, firm or corporation who or which is prohibited from
14owning such shares of stock. If any of such shares of stock
15represented by a certificate of stock are held subject to the
16terms of either an inter vivos or testamentary trust for the
17benefit of any person who could lawfully own such stock in his
18own name, the fact shall be noted on the face of the certificate
19and a copy of the instrument which created the trust shall be
20attached. A duplicate copy of the instrument which created the
21trust shall be filed with the appropriate commission.

22(d) No property rights shall exist in any shares of stock of
23any licensed corporation which are held in trust contrary to the
24provisions of this section and the same shall be forfeited to
25the Commonwealth after reasonable notice and upon hearing and
26proof thereof in any suit instituted by the Attorney General of
27Pennsylvania. Upon it being established that the stock is
28subject to forfeiture by legal adjudication, the appropriate
29commission shall sell the forfeited stock at public sale, upon
30proper notice, to the highest bidder. The proceeds from the sale

1shall be deposited in the General Fund of the Commonwealth of
2Pennsylvania.

3(e) As used in this section, the term "licensed corporation"
4shall include any licensed corporation as defined in section 102
5and also any firm, association or corporation which owns or
6leases to any licensed association or corporation a race track
7at which pari-mutuel racing is conducted, or any firm,
8association or corporation which participates in the management
9of any such licensed corporation.

10Section 211. Prohibition of interest by public officers, public
11employees and party officers in pari-mutuel racing
12activities.

13(a) No public officer, public employee or party officer
14shall:

15(1) hold any license to conduct a pari-mutuel meet from
16the commissions;

17(2) own or hold, directly or indirectly, any proprietary
18interest, stock or obligation of any firm, association or
19corporation:

20(i) which is licensed by the commissions to conduct
21pari-mutuel racing;

22(ii) which is licensed to conduct its occupation,
23trade or business at race tracks at which pari-mutuel
24race meets are conducted;

25(iii) which owns or leases to any licensed
26association or corporation a race track at which pari-
27mutuel racing is conducted; or

28(iv) which participates in the management of any
29licensed corporation conducting pari-mutuel racing; and

30(3) hold any office or employment with any firm,

1association or corporation specified in paragraph (2); or

2(4) sell or be a member of a firm or own 10% or more of
3the stock of any corporation which sells any goods or
4services to any firm, association or corporation specified in
5paragraph (2).

6The provisions of paragraph (3) shall not apply to a public
7employee other than a police officer or paid employee of a
8police department, sheriff's office, district attorney's office
9or other law enforcement agency so long as such employment of
10employees of a political subdivision may be prohibited by
11ordinance, resolution or local law.

12(b) A knowing and willful violation of this section shall be
13cause for removal from public office, public employment or party
14office. In any such case, the public officer, public employee or
15party officer, violating this section, shall be removed from
16office by appropriate authority having the power of removal.

17(c) The following words and phrases when used in this act
18shall have, unless the context clearly indicates otherwise, the
19meanings given to them in this section:

20"Party officer." The following members or officers of any
21political party:

22(1) a member of a national committee;

23(2) a chairman, vice-chairman, secretary, treasurer or
24counsel of a State committee or member of the executive
25committee of a State committee;

26(3) a county chairman, vice-chairman, counsel, secretary
27or treasurer of a county committee; or

28(4) a city chairman, vice-chairman, counsel, secretary
29or treasurer of a city committee.

30"Public employee." Every person employed by the Commonwealth

1or any political subdivision thereof.

2"Public officer." Every person elected to any public office
3of the Commonwealth or any political subdivision thereof.

4(d) The commissions shall have the power to refuse to grant
5or to revoke or suspend a license of any firm, association or
6corporation which aids or knowingly permits or conspires to
7permit any public officer, public employee or party officer to
8acquire or retain any interest prohibited by this section.

9(e) The provisions of this section shall allow any person
10other than members, employees or appointees of the commissions
11to own and to be licensed to race a horse at any licensed race
12track.

13Section 212. Officials at horse race meetings.

14(a) At all thoroughbred horse race meetings licensed by the
15State Horse Racing Commission, qualified judges and starters
16shall be approved by the commission. These officials shall
17enforce the rules and regulations of the State Horse Racing
18Commission and shall render written reports of the activities
19and conduct of such race meetings to the State Horse Racing
20Commission. The compensation of these judges and starters shall
21be paid by the corporation conducting the race meeting.

22(b) At all harness race meetings licensed by the State
23Harness Racing Commission, qualified judges and starters shall
24be approved by the commission. No person shall be approved as a
25judge or starter unless he is licensed by the United States
26Trotting Association as a duly qualified pari-mutuel race
27meeting official. The officials shall enforce the rules and
28regulations of the State Harness Racing Commission and shall
29render regular written reports of the activities and conduct of
30the race meetings to the State Harness Racing Commission. The

1compensation of the presiding judge and two associate judges at
2each race track shall be fixed and paid by the State Harness
3Racing Commission. The commission shall adopt a selection
4process to approve the appointment of these officials. The
5licensed corporations shall participate in this selection
6process for approval of these officials.

7Section 213. Licenses for commissioners, employees and
8participants at horse race meetings.

9(a) Each commission shall license trainers, jockeys,
10drivers, persons participating in thoroughbred and harness horse
11race meetings, horse owners and all other persons and vendors
12exercising their occupation or employed at thoroughbred and
13harness horse race meetings. The license gives its holder a
14privilege to engage in the specified activity, but the license
15does not give its holder a property right. Licenses are not
16transferable. Each commission shall fix the license fees to be
17paid by persons or corporations so licensed; provided, however,
18that such occupational license fees shall not exceed $100. All
19fees shall be paid to the commissions and by them paid into the
20State Treasury through the Department of Revenue and credited to
21the State Racing Fund. The application shall be in the form and
22contain the information as each commission may require.
23Applicants must have their fingerprints taken or have
24fingerprint records on file with the respective commission, the
25Federal Bureau of Investigation, the State Police or any other
26organization recognized by the respective commission as part of
27the background investigation. Each commission may exempt
28applicants from the fingerprint requirement for positions not
29related to the care or training of horses, racing, wagering,
30security or the management operations of the racing corporation

1or racetrack. All licenses shall be issued for three-year terms
2and shall be automatically renewed, upon payment of the required
3fee, unless subsection (f) applies. Each commission may
4establish a temporary license and fee valid for four months
5within a twelve-month period. No applicant, however, may receive
6more than one temporary license within 12 months of the issuance
7of his or her preceding temporary license. The commissions may
8also stagger the termination dates and renewal dates of the
9licenses, in order to process and issue the licenses in an
10orderly manner that provides for approximately one-third of the
11licenses to be renewed each year. The commissions shall fix the
12manner by which licenses are processed and issued by rule or
13regulation.

14(b) All commissioners and all employees, agents and
15representatives of the commissions shall be licensed under this
16act. There shall be no fee for this license. The commissions
17shall fix by rule or regulation the manner in which these
18licenses under this subsection shall be processed and issued.

19(c) If the commissions find that the experience, character
20and general fitness of the applicant are such that the
21participation of the person in horse race meets is consistent
22with the public interest, convenience and necessity, and with
23the best interests of racing generally in conformity with the
24purposes of this act, it may grant a license.

25(d) The commissions may refuse to issue a license under this
26section, if they shall find that the applicant:

27(1) Has been convicted of a crime involving moral
28turpitude.

29(2) Has engaged in bookmaking or other form of illegal
30gambling.

1(3) Has been found guilty of any fraud or
2misrepresentation in connection with racing or breeding.

3(4) Has been found guilty of any violation or attempt to
4violate any law, rule or regulation of racing in any
5jurisdiction, for which suspension from racing might be
6imposed in that jurisdiction.

7(5) Has violated any rule, regulation or order of the
8commissions.

9(d.1) The commissions shall refuse to issue a license under
10this section if they shall find that the applicant has been
11convicted of an offense relating to fixing races. This
12subsection shall not apply if the conviction is overturned on
13appeal under the laws of the jurisdiction of the original
14finding.

15(e) Each commission shall have the right to inspect all
16contracts between licensed corporations and vendors for goods
17and services. Each commission shall require by rule or
18regulation that vendors disclose to the appropriate commission
19all principal officers and a description of their interests in
20the vendors' business. Failure to properly disclose this
21information shall constitute grounds to deny, to revoke or to
22suspend any vendor's license issued under the provisions of this
23act.

24(f) The commissions may suspend, refuse to renew or revoke a
25license issued under this section, if it shall determine that:

26(1) The applicant or licensee:

27(i) has been convicted of a crime involving moral
28turpitude;

29(ii) has engaged in bookmaking or other form of
30illegal gambling;

1(iii) has been found guilty of any fraud in
2connection with racing or breeding;

3(iv) has been guilty of any violation or attempt to
4violate any law, rule or regulation of any racing
5jurisdiction for which suspension from racing might be
6imposed in that jurisdiction;

7(v) has violated any rule, regulation or order of
8the commissions; or

9(vi) has been convicted of a felony offense related
10to the use, possession or sale of drugs or alcohol.

11(2) That the experience, character or general fitness of
12any applicant or licensee is such that the participation of
13the person in horse racing or related activities would be
14inconsistent with the public interest, convenience or
15necessity or with the best interests of racing.

16(f.1) The commissions shall suspend, refuse to renew or
17revoke a license issued under this section if it shall determine
18that the applicant or licensee has been convicted of an offense
19related to fixing races unless the conviction has been
20overturned on appeal under the laws of the jurisdiction of the
21original finding.

22(g) Pending final determination of any question under this
23section, the commissions may issue a temporary license upon such
24terms and conditions as they may deem necessary or proper to
25effectuate the provisions of this act.

26(h) The commissions may suspend a license under subsection
27(f) pending a hearing on the matter. The hearing must take place
28within ten days of the suspension.

29(i) The commissions shall not grant licenses to citizens of
30states that do not grant licenses to citizens of this

1Commonwealth on the basis of in-state preference.

2Section 214. Power of commissions to impose fines and
3penalties.

4(a) In addition to their power to suspend or revoke licenses
5granted by them, the commissions are authorized and empowered to
6impose fines upon any corporation, association or person
7participating in any way in any horse race meet at which pari-
8mutuel wagering is conducted, other than as a patron and whether
9licensed by the commissions or not, for a violation of any
10provision of this act or the rules and regulations promulgated
11by the commissions, not exceeding $5,000 for each violation,
12which fines shall be paid into the State Treasury through the
13Department of Revenue and credited to the General Fund.
14Following exhaustion of any administrative remedies promulgated
15by the commissions for such purpose, the action of the
16commissions in imposing any monetary fine shall be subject to
17appeal to the Commonwealth Court and as approved by that court
18system, or if no court appeal is taken, then as imposed, may be
19collected in an action of assumpsit.

20(b) No officer or employee of a licensed corporation or
21their spouses, parents, fathers-in-law, mothers-in-law, sons,
22daughters, sons-in-law or daughters-in-law shall have any direct
23or indirect interest in a race horse that is participating in a
24race at a meet at which such person or heretofore-mentioned
25relative holds any interest in the licensed corporation
26conducting the meet and/or the track facility. An officer or
27employee of a licensed corporation or their spouses, parents,
28fathers-in-law, mothers-in-law, sons, daughters, sons-in-law or
29daughters-in-law may have an interest in a race horse and enter
30it at meets that are conducted by licensed corporations or at

1race tracks in which such a person or heretofore-mentioned
2relative holds no direct or indirect interest. Each commission
3shall impose a fine or penalty upon any person for violation of
4this subsection as provided for under subsection (a). For
5purposes of this subsection an interest shall not include:

6(1) any breeder's fund award as a result of a horse
7being a registered Pennsylvania-bred thoroughbred horse under
8the provisions of section 223; and

9(2) any interest in a licensed corporation or track
10facility that was held by a person, partnership, association
11or corporation on or before January 1, 1988.

12Section 215. Security personnel; powers and duties; penalty.

13(a) The commissions and any licensed corporations are
14authorized and empowered to employ persons as security
15personnel. These persons shall possess the powers and duties of
16a peace officer with respect to the enforcement of the criminal
17laws of the Commonwealth within the race meeting grounds or
18enclosure. The designated persons are also authorized to
19interrogate and eject from the race meeting grounds or enclosure
20any persons suspected of violating any rule or regulation
21promulgated by the commissions. The commissions may refuse
22admission to and eject from enclosure of the race track operated
23by any licensed corporation, any person whose presence there is,
24in the judgment of the commission, inconsistent with the orderly
25or proper conduct of a race meeting or whose presence or conduct
26is deemed detrimental to the best interest of horse racing. The
27action of the commissions in refusing any person admission, or
28ejecting him from, a race meeting ground or enclosure shall not
29be because of the race, creed, color, sex, national origin or
30religion of that person and shall be reviewable by the

1Commonwealth Court.

2(b) Except as provided for in subsections (c) and (d), any
3licensed corporation may refuse admission to and eject from the
4enclosure of the race track operated by any association any
5person except that no person shall be refused admission or be
6ejected because of the race, color, creed, sex, national origin
7or religion of that person.

8(c) A licensed corporation may refuse admission to and eject
9from the enclosure of the race track operated by the
10corporation, any person licensed by the commissions under
11section 213, employed at his occupation at the race track, whose
12presence there is deemed detrimental to the best interests of
13horse racing, citing the reasons for that determination. The
14action of the corporation in refusing the person admission to or
15ejecting him from a race meeting ground or enclosure shall have
16immediate effect. The person refused admission or ejected shall
17receive a hearing before the appropriate commission, if
18requested, pursuant to rules and regulations adopted for that
19purpose by the appropriate commission and a decision rendered
20following that hearing.

21(d) A licensed corporation may not refuse admission to or
22eject a law enforcement official while that official is actually
23engaged in the performance of official duties.

24(e) A person found within a race track enclosure after
25having been refused admission thereto or ejected therefrom
26shall, upon conviction thereof in a summary proceeding, be
27sentenced to pay a fine not exceeding $300 or undergo
28imprisonment for a term not exceeding 90 days, or both.

29Section 216. Interstate simulcastings of horse races.

30Each commission may, upon request by any licensed

1corporation, grant permission for electronically televised
2simulcasts of horse races to be operated by the licensed
3corporation at the race track enclosure where a horse race
4meeting is being conducted during, between, before or after
5posted races for that racing day. The posted races for that
6racing day shall include a minimum of eight live races, except,
7at thoroughbred tracks on the one day designated as Breeders'
8Cup Event Day, there shall be a minimum of five live races. The
9simulcasts shall be limited to horse races conducted at
10facilities outside this Commonwealth and televised to race track
11enclosures within this Commonwealth. The simulcasts shall also
12be limited to thoroughbred races designated as Grade I stakes,
13or the international equivalent thereto, with purses of at least
14$100,000; standard bred races with purses of at least $100,000;
15and other stakes races which have, in the opinion of the
16appropriate commission, significant value to the Pennsylvania
17racing industry. Cross simulcasting of the aforementioned races
18shall be permitted as long as the particular race is available
19to all race tracks in the Commonwealth which are operating live
20racing that day. All simulcasts of horse races from outside this
21Commonwealth shall also comply with the provisions of the
22Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001
23et seq. All forms of pari-mutuel wagering as described under
24section 221 shall be allowed on horse races to be televised by
25simulcasting. Each commission may promulgate rules or
26regulations to regulate the wagering and the operation of these
27horse races. All moneys wagered by patrons on these horse races
28shall be computed in the amount of money wagered each racing day
29for purposes of taxation under section 222.

30Section 216.1. Televised international and interstate

1simulcastings of horse races.

2(a) Each commission may, upon request by a licensed
3corporation, grant permission to maintain common pari-mutuel
4pools on international and interstate races transmitted to and
5from the racetrack enclosures within this Commonwealth, such
6licensed corporation to be designated as the "host licensee."
7The permission to act as host licensee for international and
8interstate simulcast races shall be limited to licensed
9corporations:

10(1) which have a live racing agreement with a horseman's
11organization representing a majority of owners and trainers
12at the facility where the licensed corporation conducts
13racing dates;

14(2) which have scheduled 95% of the total number of
15horse or harness racing days scheduled in 1986 by it or its
16predecessor at the facility where the licensed corporation
17conducts racing dates; and

18(3) which, subject to actions or activities beyond the
19control of the licensee, conduct not less than eight live
20races per race date during each meet at the facility where
21the licensed corporation conducts racing dates, except for
22thoroughbred tracks on the day designated as Breeder's Cup
23Event Day, when the facility shall hold a minimum of five
24live races.

25A horseman's organization representing a majority of owners and
26trainers at a racetrack may consent to waiving or modifying the
27provisions pertaining to the required number of racing days and
28races per day scheduled by a licensed corporation at that
29racetrack.

30(b) Cross simulcasting of the races described in subsection

1(a) shall be permitted if all amounts wagered on the races in
2this Commonwealth are included in common pari-mutuel pools. A
3host licensee seeking permission to cross simulcast must obtain
4approval from both the State Harness Racing Commission and the
5State Horse Racing Commission. All simulcasts of horse races
6shall also comply with the provisions of the Interstate Horse
7Racing Act of 1978 (92 Stat. 1811, 15 U.S.C. § 3001 et seq.).
8All forms of pari-mutuel wagering as described under section 221
9shall be allowed on horse races to be televised by simulcasting.
10Each commission may permit pari-mutuel pools in this
11Commonwealth to be combined with pari-mutuel pools created under
12the laws of another jurisdiction and may permit pari-mutuel
13pools created under the laws of another jurisdiction to be
14combined with pari-mutuel pools in this Commonwealth. Each
15commission may promulgate rules or regulations to regulate
16wagering on televised simulcasts.

17(c) All moneys wagered by patrons in this Commonwealth on
18these horse races shall be computed in the amount of money
19wagered each racing day for purposes of taxation under section
20222 and all thoroughbred races shall be considered a part of a
21thoroughbred horse race meeting and all harness races shall be
22considered a part of a harness horse race meeting for purposes
23of section 222(b)(5).

24Section 217. Refunds.

25(a) Money received by the commissions may, within one year
26from receipts thereof, be refunded, to the party for whose
27account the same were received, on proof satisfactory to the
28commissions that:

29(1) the moneys were in excess of the amount required by
30law;

1(2) the license for which application was made has been
2refused by the commission;

3(3) the moneys were received as a fine and the
4commission has, after review, reduced the amount of the fine;
5or

6(4) upon appeal, the court reduced or remitted the fine
7imposed and paid.

8(b) Refunds shall, upon approval by the commission and after
9approval by the Board of Finance and Revenue, be paid from any
10moneys in the State Racing Fund.

11Section 218. Place and manner of conducting pari-mutuel
12wagering.

13(a) Every licensed corporation shall provide during a horse
14race meeting a place or places within the race track enclosure
15at which the licensed corporation shall conduct the pari-mutuel
16system of wagering by its patrons on the results of horse races
17held at such meetings or televised to the race track enclosure
18by simulcasting. The licensed corporation shall erect a sign or
19board upon which shall be displayed the approximate straight
20odds on each horse in any race; the value of a winning mutuel
21ticket, straight, place or show on the first three horses in the
22race; the elapsed time of the race; the value of a winning daily
23double ticket, if a daily double be conducted, and any other
24information that the commissions may deem necessary for the
25guidance of the general public. The commissions may prescribe,
26by rule, the type and kind of equipment to be used for the
27display of the foregoing information.

28(b) Each commission may upon request by any licensed
29corporation grant permission to the licensed corporation to
30conduct a telephone account wagering system: Provided, however,

1That all telephone messages to place wagers must be to a place
2within the race track enclosure: And further provided, That all
3moneys used to place telephone wagers be on deposit in an amount
4sufficient to cover the wager at the race track where the
5account is opened. Each commission may promulgate rules or
6regulations to regulate telephone account wagering. All moneys
7wagered as a result of telephone account wagering shall be
8included in the amount wagered each racing day for purposes of
9taxation under section 222 and shall be included in the same
10pari-mutuel pools for each posted race. All telephone account
11wagering systems shall be solely operated by the licensed
12corporations.

13(c) A licensed corporation shall only accept and tabulate a
14wager by a direct telephone call from the holder of a telephone
15wagering account. No person shall directly or indirectly act as
16an intermediary, transmitter or agent in the placing of wagers
17for a holder of a telephone wagering account. No person shall in
18any manner place any wager by telephone to a facility in the
19race track enclosure on behalf of a holder of a telephone
20wagering account. Only the holder of a telephone wagering
21account shall place a telephone wager. Any person violating this
22subsection shall be guilty of a misdemeanor of the first degree.

23(d) A licensed corporation shall not accept a telephone
24wager from, nor establish a telephone betting account for, any
25person located in or residing in an area defined herein as the
26primary market area of a race track, other than the race track
27at which the licensed corporation is conducting a racing meet.
28Nothing herein shall prohibit the licensed corporation from
29accepting a telephone wager from, or establishing a telephone
30betting account for, any person located in or residing in the

1primary market area of the track at which the licensed
2corporation is conducting a meet and, if two tracks share
3primary market area as defined herein, both tracks shall have
4equal rights to the market in the shared area.

5(e) The primary market area of a race track, for purposes of
6this act, is defined as that land area included in a circle
7drawn with the race track as the center and a radius of 35 air
8miles.

9(f) The secondary market area of a racetrack, for purposes
10of this act, is defined as that land area included in a circle
11drawn with the racetrack as the center and a radius of 50 air
12miles, but not including the primary market area of the
13racetrack.

14(g) Notwithstanding any other provisions of this act to the
15contrary, upon approval by the appropriate commission, a
16licensed corporation may establish one or more nonprimary
17locations at which it shall conduct pari-mutuel wagering on all
18horse races conducted by such licensed corporation and may
19conduct pari-mutuel wagering on horse races conducted by another
20licensed corporation, which horse races may be televised to the
21locations, or on horse races simulcast to the locations pursuant
22to section 216, provided that:

23(1) No licensed corporation may establish nonprimary
24locations within the primary market area, as set forth in
25subsection (e), of any racetrack other than a racetrack at
26which the licensed corporation conducts race meetings.
27Establishment of a nonprimary location by a licensed
28corporation within the primary market area of a racetrack at
29which the licensed corporation conducts race meetings shall
30require approval of the commission regulating the activities

1of such licensed corporation.

2(2) Any licensed corporation may establish a nonprimary
3location within the secondary market area of a racetrack as
4set forth in subsection (f), provided that the nonprimary
5location is approved by both the State Harness Racing
6Commission and the State Horse Racing Commission.

7(3) Any licensed corporation may establish a nonprimary
8location in areas outside the primary and secondary market
9areas of any racetrack, provided that the location is
10approved by the commission which regulates the activities of
11the licensed corporation establishing the location.

12(4) Where a site is approved by the commission as a
13nonprimary location established by more than one licensed
14corporation, by agreement between the licensed corporations
15and with the approval of the appropriate commission, one
16licensed corporation may operate the pari-mutuel equipment
17for one or more of the licensed corporations at that
18location, but the location may still be considered a part of
19the racetrack enclosure of each of the licensed corporations
20approved to conduct pari-mutuel wagering at that location.

21(5) (i) Any licensed corporation, planning to establish
22a nonprimary location, shall submit to the appropriate
23commission a nonprimary location statement in a form
24prescribed by the appropriate commission which specifies,
25but is not limited to, the following:

26(A) The number of permanent and part-time jobs
27to be created at the proposed facility.

28(B) The population of the town or municipality,
29and surrounding area, where the proposed facility is
30to be located.

1(C) The proximity of the proposed facility to
2any other nonprimary location or licensed racetrack.

3(D) The type of seating to be provided,
4including areas in the proposed facility where
5patrons can handicap races.

6(E) The total seating capacity of the proposed
7facility.

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

9(G) The availability of food and beverages,
10including the number of tables, chairs, kitchen
11facilities and concession stands.

12(H) The number of available parking spaces.

13(I) A description of the general demeanor of the
14facility, including lighting, decor and plans for the
15exterior of the facility.

16(J) The number of betting windows and stand-
17alone terminals to be provided.

18(K) A description of the heating and air
19conditioning units, the smoke removal equipment and
20other climate control devices.

21(L) The total square feet of the proposed
22facility.

23(ii) The General Assembly recognizes the economic
24importance of the horse racing industry in this
25Commonwealth; and further recognizes that the
26Pennsylvania horse racing industry is in a state of
27decline. Therefore, it is the intent of the General
28Assembly through this amendatory act to revitalize and
29secure the economic future of the horse racing industry
30and to encourage statewide economic development by

1assisting in the development of nonprimary locations. It
2is the further intent of the General Assembly through
3this amendatory act that in no case shall the appropriate
4commission approve a nonprimary location statement when
5the sole purpose of that statement is to provide wagering
6opportunities pursuant to this act; rather, the
7appropriate commission shall only approve a nonprimary
8location statement that plans for a public facility
9offering not only wagering opportunities, but other
10amenities, such as high class restaurants and quality
11handicapping facilities, so that all or part of the
12nonprimary facility will resemble the clubhouse
13facilities of a racetrack. It is the further intent of
14the General Assembly through this amendatory act to offer
15the potential for the creation of jobs, not only in the
16racing and wagering industry, but more particularly in
17other service jobs, such as parking attendants, waiters
18and waitresses, security guards, custodial workers and
19food service personnel.

20(iii) In determining whether the nonprimary location
21statement meets the legislative intent of this amendatory
22act, the appropriate commission shall consider factors
23which include, but are not limited to, the following:

24(A) The purposes and provisions of this
25amendatory act.

26(B) The public interest.

27(C) The integrity of live racing.

28(D) The impact on the local community.

29(E) The potential for job creation.

30(F) The quality of the physical facilities and

1all services to be provided therein.

2(iv) In considering whether the appropriate
3commission will grant, suspend or revoke approval of
4nonprimary locations, the provisions of section 209(f)(2)
5shall apply. In connection therewith, the commission
6shall annually conduct inspections of the primary
7facility.

8(v) The rights, duties and obligations of the
9appropriate commission, as set forth in this amendatory
10act, shall apply to nonprimary locations and any
11employees or vendors of the licensed corporation
12establishing the nonprimary location.

13(6) (i) In addition to the requirements of paragraph
14(10), any licensed corporation which is authorized to
15conduct racing at any primary racetrack location at which
16there has not been, in the previous calendar year, a
17minimum of 142 days of live racing shall not be eligible
18to establish nonprimary locations outside its primary
19market area and shall only be eligible to establish
20nonprimary locations within its primary market area
21according to the following schedule.

22Year 23  24  25  26  27  28  29

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

301988	50	365
20130SB1188PN1756 -161-
11989	69	365	Under 69	307
21990	88	365	Under 88	259
31991	107	365	Under 107	191
41992	126	365	Under 126	133
51993	142	365	Under 142	75

6(ii) Notwithstanding the chart contained in
7subparagraph (i), if any such licensed corporation
8schedules 69 or more racing days in calendar year 1989,
9it may, upon approval of the appropriate commission,
10establish nonprimary locations within its primary market
11area for that calendar year.

12(7) (i) The licensed corporation authorized to hold
13race meetings at a primary racetrack location at which
14more than one license is so authorized may be granted up
15to two nonprimary locations by the appropriate
16commission, up to a maximum of four per primary racetrack
17location. The licensed corporation authorized to hold
18race meetings at a primary racetrack location at which
19there is only one such licensed corporation so authorized
20may be granted up to three nonprimary locations.

21(ii) In addition to the nonprimary locations
22authorized by subparagraph (i), during each of the
23calendar years 1989 and 1990, the appropriate commission
24may approve no more than one additional nonprimary
25location per primary racetrack location, for one licensed
26corporation authorized to conduct racing at the primary
27racetrack location.

28(iii) The General Assembly may, at any time, stop
29the further approval of any nonprimary locations. The
30State Harness Racing Commission and the State Horse

1Racing Commission shall not have the authority to approve
2any greater number of nonprimary locations after December
331, 1990, unless further authorized by the General
4Assembly.

5(iv) It shall be the duty of both the State Harness
6Racing Commission and the State Horse Racing Commission
7to annually report to the General Assembly on the effect
8of nonprimary locations on such factors as the local
9economy, the public interest and the integrity of live
10racing, and make suggestions and recommendations.

11(8) (i) Moneys wagered at all primary and nonprimary
12locations pursuant to this act shall be included in
13common pari-mutuel pools. All money wagered by patrons on
14these races shall be computed in the amount of money
15wagered each racing day for purposes of taxation under
16section 222. The licensed corporation conducting the race
17meeting and maintaining the pari-mutuel pools shall
18maintain accurate records of the amount wagered in each
19pool from every primary and nonprimary location.

20(ii) The retained moneys as provided for in section
21222(e) shall be calculated for each location where pari-
22mutuel wagering is being conducted. If wagering has taken
23place at a nonprimary location where the wagering is
24conducted by a licensed corporation other than the
25licensed corporation conducting the race meeting, the
26licensed corporation conducting the race meeting shall
27retain any moneys to which it is entitled by agreement
28between such licensed corporations and shall pay over the
29balance of the retained moneys to the licensed
30corporation conducting the wagering at the nonprimary

1location.

2(9) (i) A licensed corporation conducting a race
3meeting on which pari-mutuel wagering is conducted at one
4or more nonprimary locations shall distribute to the
5horseman's organization representing a majority of owners
6and trainers at its racetrack, or in accordance with the
7practice of the parties, to be used for payment of purses
8at that racetrack, an amount equal to not less than 6% of
9the daily gross wagering handle on such races at a
10nonprimary location: Provided, however, That when the
11gross wagering handle on such races at any such
12nonprimary location on a given day is less than $30,000,
13the above-referenced percentage shall be not less than
143%, and when the gross wagering handle on such races at
15any such nonprimary location on a given day is between
16$30,000 and $75,000 inclusive, the above-referenced
17percentage shall be not less than 4.75%: And provided
18further, That whenever a nonprimary location is within
19the primary market area of a licensed corporation other
20than the licensed corporation conducting such races, the
21applicable percentage shall be distributed one-half to
22the horseman's organization representing a majority of
23owners and trainers at the racetrack, or in accordance
24with the practice of the parties, where the race meeting
25is being conducted to be used for the payment of purses
26at that racetrack and one-half to such horseman's
27organization, or in accordance with the practice of the
28parties, at the racetrack within the primary market area
29to be used for the payment of purses at that racetrack.
30Nothing in this subparagraph shall prevent a licensed

1corporation from agreeing to distribute amounts greater
2than the percentages set forth in this subparagraph.
3However, if no alternative agreement has been reached,
4the total percentage paid for purses under this
5subparagraph shall be in accordance with the minimum
6percentages set forth in this subparagraph.

7(ii) Notwithstanding subparagraph (i), or any other
8provision in this act to the contrary, a nonprimary
9location may be established within the primary market
10area of a racetrack by agreement between the licensed
11corporation and the horseman's organization representing
12a majority of the owners and trainers at that racetrack
13specifying the total percentage of handle wagered at such
14nonprimary location to be distributed to that horseman's
15organization, or in accordance with the practice of the
16parties, to be used for the payment of purses at that
17racetrack. If no such agreement is reached covering such
18locations, the total percentage to be paid for purses
19pursuant to this subparagraph shall be the same as that
20applied to on-track wagering at the racetrack located
21within the primary market area.

22(10) The provisions of section 234 relating to the
23required number of racing days apply to this subsection.
24However, a horseman's organization representing a majority of
25owners and trainers at a racetrack may consent to waiving or
26modifying the provisions as pertaining to the required number
27of racing days scheduled by a licensed corporation at that
28racetrack.

29Section 219. Books and records of pari-mutuel wagering.

30Every corporation that conducts a horse race meeting at which

1pari-mutuel wagering is authorized, shall keep books and records
2so as to clearly show by separate record the total amount of
3money contributed to every pari-mutuel pool. The Department of
4Revenue or its authorized representative shall have access to
5all books and records for the purpose of examining the same and
6ascertaining whether the proper amount due to the State is being
7paid by the licensed corporation.

8Section 220. Filing of certain agreements with the commissions.

9Every corporation licensed to conduct horse race meetings at
10which pari-mutuel wagering is permitted shall promptly after
11entering any lease agreement concerning any concession, labor
12management relation, hiring of designated classes of officers,
13employees or contractors specified by the commissions or any
14such other contract or agreement as the commissions may
15prescribe, file with the appropriate commission a true and
16correct copy, or an accurate summary, if oral.

17Section 221. Retention percentages for pari-mutuel pools.

18(a) Every licensed corporation shall distribute the moneys
19in any pari-mutuel pool to the holders of winning tickets under
20the following requirements:

21(1) all tickets shall be presented for payment before
22the first day of April of the year following the year of
23their purchase; and

24(2) seventeen percent of the moneys plus the breakage
25from regular wagering pools shall be retained by the licensed
26corporations for further distribution under section 222; or

27(3) nineteen percent of the moneys plus the breakage
28from regular wagering pools from licensed corporations whose
29total deposits in all pari-mutuel pools averaged less than
30$300,000 per racing day for their previous meeting at the

1same facility; or

2(4) twenty percent of the moneys plus the breakage from
3the exacta, daily double, quinella and other wagering pools
4involving two horses each racing day shall be retained by the
5licensed corporations for further distribution under section
6222; or

7(5) at least 26% but no more than 35% of the moneys plus
8the breakage from the trifecta or other wagering pools
9involving more than two horses in one or more races each
10racing day shall be retained by the licensed corporations for
11further distribution under section 222; and

12(6) except as provided for in subsection (d.1) of
13section 222, every corporation may retain less than 17%, 19%
14or 20% of the moneys in the wagering pools under paragraphs
15(2), (3) and (4) or less than 26% of the moneys in the
16wagering pools under paragraph (5) upon approval from the
17appropriate commission; and

18(7) every corporation may retain more than 25% but no
19more than 35% of the moneys in the wagering pools under
20paragraph (5) upon approval from the appropriate commission;
21and

22(8) all moneys remaining in the wagering pools described
23under paragraphs (2), (3), (4), (5), (6) and (7) shall be
24distributed to the holders of winning tickets.

25(b) Breakage shall mean the odd cents of redistributions to
26be made on all contributions to pari-mutuel pools exceeding a
27sum equal to the next lowest multiple of ten.

28(c) The commissions shall establish by rule or regulation
29provisions for minus-pools relating to the retention
30requirements under this section.

1Section 222. Distribution of moneys retained from pari-mutuel
2pools; taxation.

3(a) There is hereby created the State Racing Fund. All
4licensed corporations that conduct harness race meetings shall
5pay a tax through the Department of Revenue for credit to the
6State Racing Fund. All licensed corporations that conduct
7thoroughbred horse race meetings shall pay a tax through the
8Department of Revenue for credit to the State Racing Fund. The
9tax imposed on all licensed corporations shall be a percentage
10tax on the amount wagered each racing day and be paid from the
11moneys retained under section 221.

12(a.1) At the close of each day of racing, all corporations
13licensed to conduct harness horse race meetings or thoroughbred
14horse race meetings which annually conduct at least 100 days of
15racing, or when two licensed corporations conduct their race
16meetings at the same facility and between them annually conduct
17at least 175 days of racing, will pay out of the moneys retained
18on that day under section 221, through the Department of Revenue
19for credit to the State Horse Racing Fund the following taxes
20for the time periods stated:

21(1) From January 1, 1984 through June 30, 1984 - 3.8%.

22(2) From July 1, 1984 through June 30, 1986 - 2.0%.

23(3) After June 30, 1986 - 1.5%, except as provided in
24subsection (a.4).

25(a.2) Corporations not annually conducting at least 100 days
26of racing, or 175 days of racing in conjunction with another
27licensee at the same facility as described above, will pay 2.5%
28from July 1, 1984 to June 30, 1986, and 2.0% thereafter. This
29subsection shall not apply if races are not conducted because of
30an act of God or because of a strike resulting from a labor

1dispute.

2(a.3) For purposes of this section, a racing day shall be
3considered conducted after the appropriate commission has
4certified the allocation of racing days to the Secretary of the
5Department of Revenue under the provisions of section 207(b)
6even if the racing day is subsequently cancelled by the licensed
7corporation for reasons beyond its control.

8(a.4) Any corporation which does not hold a license under
9section 209 on the effective date of this act and which is
10granted a license under this act shall be subject to payment out
11of moneys retained under section 221, through the Department of
12Revenue for credit to the State Horse Racing Fund, of the
13following tax for a period of four years from the issuance date
14of the license - 1.0%, at which time said licensee shall be
15subject to the lawful rate then in effect under subsection (a.1)
16(3).

17(a.5) In order to qualify for the 1.0% tax rate authorized
18under subsection (a.4), the newly licensed corporation may not
19include any officer, director or the immediate relative (spouse,
20children or parents) of any officer or director of any licensed
21racing corporation which conducted, at any time within the
22immediately preceding five years, any horse or harness race
23meetings at the racetrack enclosure for which the license is
24sought. Also, the newly licensed corporation may not include any
25shareholder (or their immediate relative) holding a 5% or
26greater interest who also held a 5% or greater interest in any
27corporation licensed at any time within the immediately
28preceding five years to conduct horse or harness race meetings
29at the racetrack enclosure for which the license is sought.

30(b) The commissions shall distribute moneys from the State

1Racing Fund, together with the interest earned thereon, in the
2following manner:

3(1) The salaries of employees of the commission employed
4by or for it under the provisions of this act and the act of
5April 9, 1929 (P.L.177, No.175), known as "The Administrative
6Code of 1929," net of any income earned or received by the
7commission.

8(2) The payment of the compensation of employees of the
9Department of Revenue when used in collecting taxes and
10penalties imposed by this act.

11(3) The expenses of the Secretary and the Department of
12Agriculture incurred in administering their duties under this
13act.

14(4) To pay all other expenses incurred by the commission
15in administering this act, net of any income earned or
16received by the commission.

17(5) From remaining moneys in the State Racing Fund:

18(i) An amount equivalent to one percent of the
19amount wagered each racing day at thoroughbred horse race
20meetings shall be paid by the Horse Racing Commission
21from the State Racing Fund through the Department of
22Revenue for credit to the Pennsylvania Breeding Fund.

23(ii) An amount equivalent to one and one-half
24percent of the amount wagered each racing day at harness
25horse race meetings shall be paid by the Harness Racing
26Commission from the State Racing Fund through the
27Department of Revenue for credit to the Pennsylvania Sire
28Stakes Fund, beginning on July 1, 1983.

29(6) All remaining moneys in the State Racing Fund shall
30be paid into the General Fund.

1(c) All breakage retained under section 221 by licensed
2corporations that conduct thoroughbred horse race meetings shall
3be distributed in the following manner:

4(1) Fifty percent of the breakage shall be retained by
5the licensed corporations.

6(2) Twenty-five percent of the breakage shall be
7retained by the licensed corporations to be used solely for
8purses to the horsemen.

9(3) Twenty-five percent of the breakage shall be paid to
10the Department of Revenue for credit to the State Horse
11Racing Fund.

12(d) All breakage retained under section 221 by licensed
13corporations that conduct harness horse race meetings shall be
14distributed in the following manner:

15(1) Fifty percent of the breakage shall be retained by
16the licensed corporations.

17(2) The remaining 50% of the breakage shall be retained
18by the licensed corporations of which one-half of this
19breakage shall be used solely by the licensed corporations
20for claiming and nonclaiming races where entry is restricted
21to Pennsylvania-sired horses in the following manner:

22(i) On January 1, 1982, and thereafter at least five
23of the horses programmed to start shall be Pennsylvania-
24sired horses. If at least five of the horses programmed
25to start are not Pennsylvania-sired horses, then the
26licensed corporation conducting the meet shall cancel the
27race.

28(ii) On January 1, 1983, and thereafter at least
29seven of the horses programmed to start shall be
30Pennsylvania-sired horses. If at least seven of the

1horses programmed to start are not Pennsylvania-sired
2horses, then the licensed corporation conducting the meet
3shall cancel the race.

4(iii) On January 1, 1984, and thereafter, only
5Pennsylvania-sired horses shall be allowed to start in
6these races. If all the positions are not filled by
7Pennsylvania-sired horses in these races, then the
8licensed corporation conducting the meet shall cancel the
9race.

10All breakage moneys due licensed corporations for the purses for
11claiming and nonclaiming races under this paragraph but not
12expended as a result of a race cancellation shall be carried
13forward to the next succeeding meet by the licensed corporations
14to be used for claiming and nonclaiming races which restrict
15entry to Pennsylvania-sired horses under the provisions of this
16paragraph.

17(d.1) An amount equivalent to one percent of the amount
18wagered at each racing day at thoroughbred and harness horse
19race meetings as set forth in section 221(a)(4) and (5) shall be
20paid through the Department of Revenue for credit to the State
21Racing Fund.

22(e) All remaining moneys retained under section 221 and not
23heretofore distributed shall be kept by the licensed
24corporations for their use.

25Section 223. Pennsylvania Breeding Fund.

26(a) There is hereby created a restricted account in the
27State Racing Fund to be known as the Pennsylvania Breeding Fund
28which shall consist of the money appropriated under the
29provisions of section 222 and which shall be administered by the
30State Horse Racing Commission.

1(b) After the deduction of expenses related to the
2administration and development of the Pennsylvania Breeding Fund
3program incurred by the Pennsylvania Horse Breeders'
4Association, the State Horse Racing Commission shall, by rule or
5regulation, provide for awards as follows:

6(1) An award of 30% of the purse earned by every
7registered Pennsylvania-bred thoroughbred horse sired by a
8registered Pennsylvania sire at the time of conception of the
9registered Pennsylvania-bred thoroughbred horse, or an award
10of 20% of the purse earned by every registered Pennsylvania-
11bred thoroughbred horse sired by a nonregistered sire, which
12finishes first, second or third in any race conducted by a
13licensed corporation under this act shall be paid to the
14breeder of said registered Pennsylvania-bred thoroughbred
15horse. A single award under this paragraph may not exceed 1%
16of the total annual fund money.

17(2) An award of 10% of the purse earned by any
18Pennsylvania-bred thoroughbred horse which finishes first,
19second or third in any race conducted by a licensed
20corporation under this act shall be paid to the owner of the
21registered Pennsylvania sire which regularly stood in
22Pennsylvania at the time of conception of said Pennsylvania-
23bred thoroughbred horse. A single award under this paragraph
24may not exceed .5% of the total annual fund money.

25(3) An award of 10% of the purse earned by any
26registered Pennsylvania-bred thoroughbred horse which
27finishes first in any race conducted by a licensed
28corporation under this act not restricting entry to
29registered Pennsylvania-bred thoroughbred horses shall be
30paid to the licensed owner of said registered Pennsylvania-

1bred thoroughbred horse at the time of winning. A single
2award under this paragraph may not exceed .5% of the total
3annual fund money.

4(c) Up to one-fifth of the total of the estimated fund
5moneys remaining each year after the deduction of expenses
6related to the administration and development of the
7Pennsylvania Breeding Fund program and the payment of breeder,
8stallion and owner awards, shall be divided among the licensed
9corporations that conduct thoroughbred horse race meetings in
10direct proportion to the rate by which each licensed corporation
11generated the fund moneys during the previous year to be used
12solely for purses for Pennsylvania Breeding Fund stakes races
13which restrict entry to registered Pennsylvania-bred
14thoroughbred horses.

15(d) The fund moneys remaining following disbursements as
16directed in subsection (b)(1), (2) and (3) and subsection (c)
17shall be divided among the licensed corporations that conduct
18thoroughbred horse race meetings in direct proportion to the
19rate by which each licensed corporation generated the fund
20moneys during the previous year to be used for purses as
21follows:

22(1) Claiming and nonclaiming Pennsylvania Breeding Fund
23races which restrict entry to registered Pennsylvania-bred
24thoroughbred horses.

25(2) Claiming and nonclaiming Pennsylvania Breeding Fund
26races which prefer registered Pennsylvania-bred thoroughbred
27horses as starters. In these races, should eight or more
28registered Pennsylvania-bred horses pass the entry box, the
29race shall be considered closed to horses other than
30registered Pennsylvania-bred thoroughbred horses.

1(e) Those Pennsylvania Breeding Fund moneys due licensed
2corporations as outlined in subsections (c) and (d) but not
3expended during the calendar year may be carried forth in the
4fund on the account of said licensed corporations to be expended
5during the succeeding year in addition to said corporations'
6fund moneys annually due them for purses.

7(f) The Pennsylvania Breeding Fund Advisory Committee, under
8the jurisdiction of the State Horse Racing Commission, is hereby
9established and shall be part of the Pennsylvania State Horse
10Racing Commission. The commission shall consist of five members,
11all of whom shall be residents of Pennsylvania, to be appointed
12by the commission by June 1 of each year. The committee shall
13consist of two members of the Pennsylvania Horse Breeders'
14Association, one member from the licensed corporations, one
15member from the association representing horsemen racing in
16Pennsylvania and one member of the commission. If any member
17other than the commission member has not been recommended by
18June 1 of each year, the commission shall make an appointment
19for the organization failing to so recommend a member of the
20committee. The committee shall assist and advise the commission
21under the provisions of this act but shall have no power in
22administering the fund. The members of the committee shall
23receive no compensation for their services as members.

24(g) The State Horse Racing Commission may contract with the
25Pennsylvania Horse Breeders' Association as the sole responsible
26body for the registration and records of Pennsylvania-breds. The
27Pennsylvania Horse Breeders' Association shall advise the
28commission when called upon and shall determine the
29qualifications for Pennsylvania-bred thoroughbred horses and
30Pennsylvania sires. Its registration and record facts are hereby

1declared as official Pennsylvania records. At the close of each
2calendar year, the Pennsylvania Horse Breeders' Association,
3through the Pennsylvania Breeding Fund Advisory Committee, shall
4submit to the commission for its approval an itemized budget of
5projected expenses for the ensuing year relating to the
6administration and development of the Pennsylvania Breeding Fund
7program. The commission, on no more than a quarterly basis,
8shall reimburse from the fund the Pennsylvania Horse Breeders'
9Association for those expenses actually incurred in the
10administration and development of the Breeding Fund program.

11Section 224. Pennsylvania Sire Stakes Fund.

12(a) There is hereby created a restricted account in the
13State Racing Fund to be known as the Pennsylvania Sire Stakes
14Fund which shall consist of the money appropriated under the
15provisions of section 222 and which shall be administered by the
16State Harness Racing Commission.

17(b) Sixty percent of the money remaining in the excess fund
18account of the Pennsylvania Sire Stakes Fund at the end of the
19calendar year in which this subsection is enacted shall be
20distributed to licensed corporations that conduct harness horse
21race meetings to be used in the next succeeding calendar year as
22purse money for Pennsylvania-sired horses. The remaining 40% of
23the money in the excess fund account at the end of the calendar
24year of the enactment of this subsection, together with the
25interest earned on that money, shall be distributed to licensed
26corporations that conduct harness horse race meetings to be used
27in the next succeeding calendar year following the next
28succeeding calendar year as purse money for Pennsylvania-sired
29horses. After deduction of sufficient funds to cover the State
30Harness Racing Commission's cost of administration, 80%, unless

1a smaller percentage is necessary in order to comply with the
2minimum dollar requirement of subsection (e), of all remaining
3moneys in the Pennsylvania Sire Stakes Fund at the end of the
4calendar year shall be distributed to licensed corporations that
5conduct harness horse race meetings to be used as purse money
6for Pennsylvania-sired horses. The State Harness Racing
7Commission may then allocate up to a total of and not exceeding
840% of the total amount to be distributed to licensed
9corporations in a calendar year for use for a series of
10championship final races at the race tracks of licensed
11corporations that conduct harness horse race meetings. The State
12Harness Racing Commission shall allocate the moneys to these
13championship final races in an equal amount for each sex, age
14and gait for two- and three-year-old trotters and pacers. The
15State Harness Racing Commission shall determine conditions
16establishing eligibility to these final events. No pari-mutuel
17harness track shall be awarded more than 50% of the championship
18final races in any calendar year. The State Harness Racing
19Commission shall schedule these final events so as to evenly
20alternate classes at each race track each year. After the
21allocation for the championship final races has been determined,
22the remaining funds to be distributed to licensed corporations
23that conduct harness horse race meetings shall be divided
24equally among the licensed corporations. Each licensed
25corporation shall divide the funds received equally for each of:

26(1) four two-year-old races; one pace for colts, one
27pace for fillies, one trot for colts and one trot for
28fillies; and

29(2) four three-year-old races; one pace for colts, one
30pace for fillies, one trot for colts and one trot for

1fillies.

2(c) Each allotment shall provide purse money for the
3respective races. The purse money shall be in addition to any
4entry fees or other funds available.

5(d) Entry for these races shall be limited to harness horses
6which were sired by a standardbred stallion regularly standing
7in Pennsylvania and each race shall be designated a Pennsylvania
8sire stakes race. The State Harness Racing Commission shall make
9the provisions and regulations as it shall deem necessary for
10the proper administration of the entry restriction.

11(e) The remaining moneys in the Pennsylvania Sire Stakes
12Fund up to a total of and not exceeding $25,000 for each
13agricultural fair and one- or two-day events as defined in
14harness racing commission regulations shall be divided equally
15among those agricultural fairs and one- or two-day events, not
16to exceed more than five one- or two-day events per year and as
17authorized by the State Harness Racing Commission, provided that
18no more than two one-day or two-day events per county are
19authorized unless, after a date established by the commission,
20all five of the events have not been allocated, conducting
21harness horse races for two-year-old and three-year-old harness
22horses: Provided, however, That in no event shall less than
23$225,000 be allocated from the Pennsylvania Sire Stakes Fund and
24be divided equally among those agricultural fairs and one- or
25two-day events conducting these races. Each fair or one- or two-
26day events receiving the funds shall divide the total amount
27equally among all eligible races for two-year-old and three-
28year-old harness horses and shall apply the funds solely as
29additional purse funds. Only races to which entry is restricted
30to Pennsylvania-sired horses shall be eligible. The State

1Harness Racing Commission shall make the provisions and
2regulations as it shall deem necessary for the proper
3administration of all racing provided for in this subsection,
4including, but not limited to, portable stall rentals at one-day
5or two-day events.

6(f) The fund moneys remaining following disbursements as
7directed in subsections (b), (c), (d) and (e) shall, except as
8provided in subsection (b), be divided among active licensed
9corporations that conduct harness horse race meetings under this
10act in direct proportion to the rate by which each licensed
11corporation generated the fund moneys during the previous year.
12The fund moneys so divided shall be used for purses as follows:

13(1) A minimum of four races, claiming and nonclaiming,
14shall be carded per week on the condition sheet for overnight
15claiming and nonclaiming Pennsylvania Fund races which
16restrict entry to registered Pennsylvania-sired or wholly
17Pennsylvania-owned harness horses.

18(2) Claiming and nonclaiming Pennsylvania Fund races
19which prefer registered Pennsylvania-sired harness horses as
20starters. In these races, should seven or more registered
21Pennsylvania-sired harness horses pass the entry box, the
22race shall be considered closed to horses other than
23registered Pennsylvania-sired harness horses.

24Section 225.1. Fair Fund proceeds.

25The Secretary of Agriculture shall distribute certain moneys
26in the Fair Fund annually, on or before March 1, for
27reimbursement for each county agricultural society and each
28independent agricultural society conducting harness horse racing
29during its annual fair other than races for two- and three-year
30old colts and fillies, an amount of money equal to that used

1during their annual fair as purse money for harness horse
2racing, track and stable maintenance, starting gate rental and
3the cost of all harness horse racing officials required during
4their annual fair, but not more than $13,000, a minimum of
5$4,000 of which must be used for purse money and the balance of
6said allotment per fair, not used for purse money over the
7minimum $4,000 allotment, shall be used for said specific
8purposes herein before referenced, or otherwise said allotment
9shall be retained in the fund. The State Harness Racing
10Commission shall cause to be carried out as its responsibility a
11yearly inspection of each track facility and shall advise each
12operating fair of necessary track maintenance which is necessary
13to insure adequate racing surface during the course of scheduled
14fairs and racing events. If it is the opinion of the commission
15that the fair society or event sponsor is not adequately
16financing track maintenance through its permissible
17reimbursement under this paragraph, the commission shall so
18surcharge the Fair Fund account of said fair society or event
19sponsor to effectuate said remediation.

20Section 226. Hearing of refusal or revocation of license.

21If the commissions refuse to grant any license applied for
22under this act, or shall revoke or suspend any license granted,
23the applicant or licensee may demand, within ten days after
24notice of the decision of the appropriate commission, a hearing
25before the appropriate commission. The commission shall give
26prompt notice of the time and place for the hearing at which
27time the commission will hear the applicant or licensee. Pending
28the hearing and final determination, the action of the
29commissions in refusing to grant or in revoking or suspending a
30license shall remain in full force. The commissions may continue

1any hearing from time to time for the convenience of any of the
2parties. Any of the parties affected by a hearing may be
3represented by counsel. In the conduct of the hearing, the
4commissions shall not be bound by technical rules of evidence,
5but all evidence offered before the commissions shall be reduced
6to writing. All evidence, exhibits and findings of the
7commissions shall be permanently preserved and shall constitute
8the record of the commission. In connection with the hearing,
9the commissions shall have the power to administer oaths and
10examine witnesses, and may issue subpoenas to compel attendance
11of witnesses and the production of all material and relevant
12reports, books, papers, documents, correspondence and other
13evidence. The commissions may by order refer to one or more of
14its officers the duty of taking testimony in the matter and to
15report to the commission. Within 30 days after the conclusion of
16the hearing, the appropriate commission shall make a final order
17in writing, setting forth the reasons for the action taken by it
18and a copy thereof shall be served on the applicant or licensee.

19Section 227. Approval of the racing facility.

20The commissions shall not grant to a corporation formed under
21this act a license to conduct a horse race meeting at which
22pari-mutuel betting may be conducted, until the corporation has
23submitted to the appropriate commission a statement of the
24location of its proposed grounds and race track, together with a
25plan of the track and plans of all buildings, seating stands and
26other structures in a form as the appropriate commission may
27prescribe. All plans shall be approved by the appropriate
28commission before the issuance of any license to conduct a pari-
29mutuel horse race meeting.

30Section 228. Prohibition of wagering by certain officials,

1employees and minors.

2No commissioner, executive secretary, deputy, officer,
3representative, employee or counsel of the commission shall
4wager upon the outcome of any horse race conducted at a track at
5which pari-mutuel wagering is conducted by any licensed
6corporation of the commissions. No licensed corporation shall
7permit any person who is actually and apparently under 18 years
8of age to wager at a race meeting conducted by it. No licensed
9corporation shall permit any person who is under 18 years of age
10to attend a horse race meeting conducted by it unless the person
11is accompanied by a parent or guardian. This section shall not
12be construed to prohibit persons under 18 years of age, who are
13legally employed, from being upon the race track premises for
14the sole purpose of engaging in the performance of their duties
15as employees. The commissions shall, by rule, provide for
16enforcement of this section.

17Section 229. State horse racing veterinarians and State
18stewards.

19(a) The State Horse Racing Commission shall appoint and
20employ licensed veterinarians and stewards to serve as the horse
21racing veterinarians and State stewards for horse racing,
22respectively, at each meeting conducted by a corporation
23licensed by the State Horse Racing Commission. The State Horse
24Racing Commission shall have the authority to employ other
25individuals as shall be necessary to carry out the
26responsibilities of this section.

27(b) The costs and compensation of the horse racing
28veterinarians, State stewards and other individuals employed
29shall be fixed and paid by the State Horse Racing Commission.

30(c) The State Horse Racing Commission shall establish a job

1description and professional criteria for stewards to assure
2that they have a working knowledge of the horse racing industry.

3Section 230. State harness racing veterinarians.

4(a) The State Harness Racing Commission shall appoint and
5employ licensed veterinarians to serve as the harness racing
6veterinarians for harness racing at each meeting conducted by a
7corporation licensed by the State Harness Racing Commission. The
8State Harness Racing Commission shall have the authority to
9employ other individuals as shall be necessary to carry out the
10responsibilities under this section.

11(b) The costs and compensation of the harness racing
12veterinarians and other individuals employed to carry out the
13provisions of this act shall be fixed and paid by the State
14Harness Racing Commission.

15Section 231. Free passes, cards or badges.

16(a) A licensed corporation shall not issue free passes,
17cards or badges without admission tax, except to persons
18hereafter described: officers, employees and shareholders of the
19corporation conducting the race meeting; members, officers and
20employees of the commissions; members of horse racing
21associations of other states and foreign countries; public
22officers engaged in the performance of their duties; persons
23employed and accredited by the press to attend such meeting;
24owners, stable managers, trainers, jockeys, concessionaries and
25other persons whose actual duties require their presence at the
26race tracks.

27(b) The commissions may allow a licensed corporation to
28issue free passes, cards or badges for special promotional
29programs and seasonal discount ticket programs, so long as the
30corporation has obtained approval from the appropriate

1commission. The admissions taxes under section 208 shall be
2imposed on the price of all seasonal discount tickets sold by a
3licensed corporation.

4(c) The issuance of tax-free passes, cards or badges shall
5be under the rules and regulations of the commissions. A list of
6all persons, except persons admitted under an approved special
7promotional program or seasonal discount ticket program, to whom
8free passes, cards or badges are issued shall be filed with the
9appropriate commission.

10Section 232. Political subdivision agricultural fairs and horse
11race meetings not licensed to conduct pari-mutuel
12wagering.

13Pari-mutuel wagering on horse races at any county or other
14political subdivision, agricultural or other fair shall not be
15authorized. No lottery, pool selling, bookmaking or any other
16kind of gambling upon the results of races, heats or contests of
17speed of horses shall be allowed at any fair or at any horse
18race meeting conducted in the State, except those licensed to
19operate pari-mutuel wagering under the provisions of this act.

20Section 233. Monitoring of wagering on video screens.

21Every corporation licensed to conduct pari-mutuel betting
22shall display on video screens the approximate odds or
23approximate will-pays on each horse for each race as well as any
24combination of races including, but not limited to, quinellas,
25exactas, perfectas and any other combination or pool of races.
26No display of approximate odds or approximate will-pays shall be
27required where the wager is on horses in four or more races,
28such as "Pick 4, Pick 5 or Pick 6." In addition to displaying
29the amount of money wagered, the approximate odds or approximate
30will-pays on each horse or combination of horses shall be shown

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

10Section 234. Simulcasting.

11The State Horse Racing Commission and the State Harness
12Racing Commission shall only permit intrastate simulcasting of
13live racing between two licensed corporations when each
14continues to schedule 95% of the total number of horse or
15harness racing days scheduled in 1986 at the facility where each
16said licensed corporation conducts its horse or harness racing
17dates, and when the average number of live horse or harness
18races per race day equals 90% of the average number of live
19horse or harness races conducted per day in 1985 at the facility
20where each said licensed corporation conducts its horse or
21harness racing dates, subject to any actions or activities
22beyond the control of the licensee: Provided, however, That for
23any licensed corporation that was granted a permanent license
24for horse racing and operating at a facility where the average
25daily handle at the facility at which the licensed corporation
26conducts racing dates is less than $150,000 in any calendar year
27after 1985, the State Horse Racing Commission may permit
28intrastate simulcasting when the licensed corporation first
29schedules a minimum of 50 racing days in the calendar year in
30which it wishes to simulcast. A newly licensed corporation

1racing at the facility may be permitted to intrastate simulcast
2by the State Horse Racing Commission when it first schedules at
3least 50 racing dates in the year in which it wishes to
4simulcast. If a newly licensed corporation is awarded harness or
5horse racing dates after 1987 and races those dates at a horse
6or harness racing facility existing in 1987, other than a
7facility whose average daily handle is less than $150,000, the
8respective commissions shall not permit intrastate simulcasting
9unless the same number of horse or harness dates scheduled at
10that facility in 1987 are scheduled at that facility in the year
11that the corporation wishes to simulcast subject to any actions
12or activities beyond the control of the licensees (i.e. act of
13God, strike). For a licensed corporation awarded racing dates at
14a facility which did not conduct horse or harness racing prior
15to 1987, the respective commissions may permit intrastate
16simulcasting if the licensed corporation is the only corporation
17operating that facility when that corporation first schedules a
18minimum of 125 days of racing dates in the calendar year in
19which it wishes to simulcast or when more than one such
20corporation is awarded dates for racing at the same facility
21when those corporations first schedule a minimum of 200 days of
22racing in the calendar year in which they wish to simulcast. For
23purposes of this section a racing day shall consist of a minimum
24of eight live races, except at thoroughbred tracks on Breeders'
25Cup Event Day. For any licensed racing corporation engaged in
26simulcasting, regardless of location or distance from another
27licensed racing corporation, there shall exist a written
28agreement with the horseman's organization representing a
29majority of the owners and trainers at both the sending and
30receiving racetracks. If no agreement can be reached, then the

1licensed corporation may petition the court of common pleas in
2the county in which the licensed corporation racetrack is
3located, which may, upon good cause shown by the licensed
4corporation that failure to consent would be detrimental to the
5Pennsylvania racing industry, direct the organization
6representing the horsemen to approve the simulcast agreement.
7The respective commission may then authorize the simulcasting,
8if, in the opinion of the appropriate commission, such
9simulcasting will have significant value to the Pennsylvania
10racing industry. The simulcast signal shall be encoded, and the
11racetrack receiving the simulcast signal shall not send this
12signal anywhere other than public locations authorized under
13section 218 or 218-A. All forms of pari-mutuel wagering
14described in section 221 shall be allowed on races to be
15televised by simulcasting under this section. The State Horse
16Racing Commission and the State Harness Racing Commission may
17promulgate regulations on wagering and the operation of these
18races. All money wagered by patrons on these races shall be
19computed in the amount of money wagered each racing day for
20purposes of taxation under section 222. In the event the
21simulcast is between a thoroughbred racetrack and a harness
22racetrack, both commissions shall have jurisdiction, and any
23approval required hereunder must be received from both
24commissions: Provided, however, That if no agreement can be
25reached between the horseman's organization aforementioned, then
26the licensed corporation may petition the court of common pleas
27in the county in which the licensed corporation racetrack is
28located, which may, upon good cause shown by the licensed
29corporation that failure to consent would be detrimental to the
30Pennsylvania racing industry, direct the organization

1representing the horsemen to approve the simulcast agreement.
2The respective commissions may then authorize the simulcasting
3if, in the opinions of the respective commission, such
4simulcasting will have a significant value to the Pennsylvania
5racing industry. The provisions of this section with regard to
6the required number of racing days may be waived or modified by
7the applicable commission if the waiver or modification has been
8consented to by the horseman's organization representing a
9majority of the owners and trainers at the racetrack where the
10racing days are to be scheduled or raced.

11Section 235. Commingling.

12(a) This section shall be applicable only to licensed
13thoroughbred racing corporations.

14(b) The race secretary shall receive entries and
15declarations as an agent for the licensed corporation for which
16the race secretary acts. The race secretary or an individual
17designated by the licensed corporation may receive stakes,
18forfeits, entrance money, jockey's and other fees, purchase
19money in claiming races and other money that can properly come
20into his possession as an agent for the licensed corporation for
21which the race secretary or designee is acting.

22(c) A licensed corporation shall maintain a separate
23account, called a Horsemen's Account. Money owing to owners in
24regard to purses, stakes, rewards, claims and deposits shall be
25deposited into the Horsemen's Account. Funds in the account
26shall be recognized and denominated as being the sole property
27of owners. Deposited funds may not be commingled with funds of
28the licensed corporation unless a licensed corporation has
29established, in favor of the organization which represents a
30majority of the owners and trainers racing with the licensed

1corporation, an irrevocable clean letter of credit with an
2evergreen clause. The minimum amount of the credit must be the
3greater of $1,000,000 or 110% of the highest monthly balance in
4the Horsemen's Account in the immediate prior year. To calculate
5the monthly balance in the Horsemen's Account, the sum of the
6daily balances shall be divided by the number of days in the
7month. The evergreen clause must provide that, 30 days prior to
8the expiration of the letter of credit, the financial
9institution can elect not to renew the letter of credit; that,
10upon this election, the financial institution must notify the
11designee of the organization which represents a majority of the
12owners and trainers racing with the licensed corporation, by
13registered mail, return receipt requested, of the election not
14to renew; and that the financial institution will honor the
15letter of credit for six months after expiration. Purse money
16earned by owners shall be deposited by the licensed corporation
17in the Horsemen's Account within 48 hours after the result of
18the race in which the money was earned has been declared
19official and the purse has been released by the commission.

20(d) A licensed corporation shall designate a bookkeeper who
21is authorized to receive and disburse funds from the Horsemen's
22Account. The bookkeeper must be bonded to provide indemnity for
23malfeasance, nonfeasance and misfeasance. A certified copy of
24the bond shall be filed with the commission.

25(e) The Horsemen's Account and the investment and deposit
26schedules relating to the account are subject to examination, at
27reasonable times, by a designee of the organization which
28represents a majority of the owners and trainers racing with the
29licensed corporation and by the commission. The bookkeeper shall
30provide each owner with access, at reasonable times during a

1racing day, to the amount of funds in the Horsemen's Account
2credited to that owner. At the close of a race meeting, the
3bookkeeper shall mail to each owner a record of deposits,
4withdrawals and transfers affecting the amount of funds in the
5Horsemen's Account credited to that owner.

6(f) The Horsemen's Account shall be audited periodically as
7deemed appropriate by the commission. There shall be at least
8one audit per year. Monthly statements shall be provided to the
9designee of the organization which represents a majority of the
10owners and trainers racing with the licensed corporation.

11(g) Fifty percent of the money earned as interest on funds
12in the Horsemen's Account shall be paid to the organization
13which represents a majority of the owners and trainers racing
14with the licensed corporation on a weekly basis. This amount
15shall be for the benefit of the horsemen as determined by the
16organization which represents the majority of the owners and
17trainers racing with the licensed corporation. The remaining 50%
18of the interest earned shall be for the benefit of the licensed
19corporation which shall have the responsibility to fund all
20costs associated with the administration of the fund. Interest
21each month must be earned in an amount equal to the Federal
22Reserve Discount Rate on the first day of the month.

23Section 236. Harness racing purse moneys.

24Each licensed harness horse racing association must place on
25deposit with the State Harness Racing Commission by March 1 of
26each year an irrevocable letter of credit equivalent to its
27average weekly purse total from the immediate prior year. The
28commission shall hold the letter of credit in trust for the
29harness horsemen racing at that licensed corporation in the
30event that purse checks are not issued or that insufficient

1funds are available to cover the purse checks.

2Section 237. Limitations on day and night racing.

3(a) For the purpose of this section day racing shall be
4racing days for which the starting time for the first race is at
5or before 2:00 p.m., and night racing shall be racing days for
6which the starting time for the first race is after 5:00 p.m.
7Day racing may not be conducted at any racing facility after
81985 on any comparable type racing day or holiday on which day
9racing was not conducted in 1985 unless all presently operating
10licensed corporations conducting day racing agree, in writing,
11to allow such day racing activities.

12(b) Night racing may not be conducted at any racing facility
13after 1985 on any comparable type racing night or holiday on
14which night racing was not conducted in 1985 unless all
15presently operating racing facilities conducting night racing
16agree, in writing, to allow night racing activities.

17(c) Each appropriate commission shall have the authority to
18grant exceptions to this section upon application by a licensed
19racing corporation for not more than five racing days per
20calendar year with respect to each licensed corporation. The
21provisions of this section shall be effective until July 1,
221991.]

23Section 3. The act is amended by adding a chapter to read:

24CHAPTER 2-A

25RACING OVERSIGHT

26Section 201-A. Bureau of Horse Racing.

27(a) Establishment.--The Bureau of Horse Racing is
28established within the board to regulate the operations of horse
29racing and pari-mutuel operations.

30(b) Jurisdiction.--The board shall have jurisdiction and

1regulatory authority over the following:

2(1) Pari-mutuel wagering and other horse racing
3activities in this Commonwealth.

4(2) A licensed corporation engaged in pari-mutuel horse
5racing activities.

6(3) Out-of-competition drug testing, which shall include
7the random drug testing of all horses entered in a race,
8stabled on the grounds or shipped into a licensed
9corporation's facility.

10(4) The conduct of horse racing in this Commonwealth.

11(c) Records.--The board shall maintain at its office the
12following:

13(1) All documents provided to or filed with the board.
14Documents may be designated as confidential in accordance
15with board policy.

16(2) A docket setting forth the names of all stockholders
17in a business entity, licensed under this act. The docket
18shall be available for public inspection during normal
19business hours of the board.

20(3) The number of shares held by each stockholder.

21(4) A complete record of proceedings of the board
22relating to horse racing and pari-mutuel wagering.

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

24(1) All rules and regulations promulgated under the
25former act of December 11, 1967 (P.L.707, No.331), referred
26to as the Pennsylvania Thoroughbred Horse Racing Law, or the
27former act of December 22, 1959 (P.L.1978, No.728), referred
28to as the Pennsylvania Harness Racing Law, shall remain in
29effect except to the extent that they are in direct conflict
30with this act. The board may adopt, amend, revise or alter

1the rules and regulations as the board deems necessary.

2(2) The board shall promulgate rules and regulations
3necessary for the administration and enforcement of this act.
4Except as provided in paragraph (3), regulations shall be
5adopted under the act of July 31, 1968 (P.L.769, No.240), 
6referred to as the Commonwealth Documents Law, and the act of 
7June 25, 1982 (P.L.633, No.181), known as the Regulatory 
8Review Act.

9(3) In order to facilitate the prompt implementation of
10this act, regulations promulgated by the board shall be
11deemed temporary regulations which shall not expire for a
12period of three years following publication. Temporary
13regulations shall not be subject to:

14(i) Sections 201, 202, 203, 204 and 205 of the
15Commonwealth Documents Law.

16(ii) The Regulatory Review Act.

17(iii) Sections 204(b) and 301(10) of the act of 
18October 15, 1980 (P.L.950, No.164), known as the 
19Commonwealth Attorneys Act.

20(4) Except for temporary regulations governing
21procedures for collecting and testing for illegal or
22performance enhancing substances and practices in horse
23racing, the board's authority to promulgate temporary
24regulations under paragraph (3) shall expire three years
25after the effective date of this section. Regulations adopted
26after this period shall be promulgated as provided by law.

27(e) Licenses.--Each license issued prior to January 1, 2014,
28shall remain in effect for the remainder of the term for which
29the license was issued unless revoked or suspended. After a
30license has expired, a license renewal or new license shall be

1issued under this act. A license renewal shall be subject to and
2made consistent with the requirements of 4 Pa.C.S. § 1326
3(relating to license renewals).

4Section 202-A. Additional powers.

5The board shall regulate horse racing at which pari-mutuel
6wagering is conducted and approve the number of racing days
7allocated by each licensed business entity. In addition to any
8other powers of the board:

9(1) The board shall promulgate regulations regarding
10medication rules.

11(2) The board shall require applicants under this act to
12submit to fingerprinting and photographing by the
13Pennsylvania State Police or by a local law enforcement
14agency capable of submitting fingerprints and photographs
15electronically to the Pennsylvania State Police utilizing the
16Integrated Automated Fingerprint Identification System and
17the Commonwealth Photo Imaging Network or in a manner
18provided by the Pennsylvania State Police. The Pennsylvania
19State Police shall submit fingerprints when requested by the
20board to the Federal Bureau of Investigation to verify the
21identity of applicants and to obtain criminal records.
22Fingerprints and photographs obtained under this paragraph
23may be maintained by the board and the Pennsylvania State
24Police to enforce this act and for general law enforcement
25purposes. In addition to any other fee or cost assessed by
26the board, an applicant shall pay for the cost of
27fingerprinting and photographing.

28(3) Two years following the effective date of this
29section, the board may adopt regulations to annually increase
30any fee, charge or cost authorized under this act. The

1increase may not exceed the annual cost-of-living adjustment
2calculated by applying the percentage change in the consumer
3price index for all urban consumers for the Pennsylvania, New
4Jersey, Delaware and Maryland area for the most recent 12-
5month period for which figures have been officially reported
6by the United States Department of Labor, Bureau of Labor
7Statistics, immediately prior to the date the adjustment is
8due to take effect. This paragraph shall not apply to the
9costs of drug testing under section 304.

10Section 202.1-A. Budget.

11The board shall annually submit an itemized proposed budget
12to the Office of the Budget and the chairman of the
13Appropriations Committee of the Senate and the chairman of the
14Appropriations Committee of the House of Representatives
15requesting amounts to be appropriated to administer and enforce
16this act.

17Section 203-A. License.

18After January 1, 2015, a licensed business entity shall
19conduct a horse racing meeting at the location designated and
20approved by the board under 4 Pa.C.S. §§ 1302 (relating to
21Category 1 slot machine license) and 1303 (relating to
22additional Category 1 slot machine license requirements).

23Section 204-A. (Reserved).

24Section 205-A. Number of horse racing corporations.

25(a) Harness horse racing.--No more than four business
26entities shall be licensed to conduct a pari-mutuel meet. No
27business entity licensed under this act to conduct harness horse
28racing with pari-mutuel wagering shall be licensed to conduct
29thoroughbred horse racing with pari-mutuel wagering.

30(b) Thoroughbred horse racing.--No more than three business

1entities shall be licensed by the board to conduct a pari-mutuel
2meet. No business entity licensed under this act to conduct
3thoroughbred horse racing with pari-mutuel wagering shall be
4licensed to conduct harness horse racing with pari-mutuel
5wagering.

6Section 206-A. Department of Revenue.

7The Department of Revenue shall provide financial
8administration of pari-mutuel wagering under this act in
9accordance with Department of Revenue regulations and
10regulations of the board. The Department of Revenue shall
11prescribe the form and system of accounting to be used by
12licensed business entities, and may access and examine records,
13equipment and other information relating to pari-mutuel
14wagering.

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
21business entity, including the following information:

22(1) the names and addresses of the licensed business
23entities;

24(2) the names and addresses of the owners, officers and
25general managers of the licensed business entities; and

26(3) any other information the board deems appropriate.

27(c) Cancellation.--If a racing day is canceled by a licensed
28business entity for reasons beyond the licensed business
29entity's control, the board shall grant the licensed business
30entity the right to conduct that racing day in the same or the

1next ensuing calendar year, if schedules permit.

2Section 208-A. Fee for racetrack admissions.

3(a) General rule.--

4(1) Each licensed business entity holding a horse racing
5meeting under this act shall remit to the Department of
6Revenue a fee equal to 20¢ for each individual who attended
7the horse racing meeting. The amount collected shall be
8deposited into the State Racing Fund.

9(2) Nothing under this section shall apply to a horse
10racing meeting conducted by a State, county or agricultural
11association.

12(b) Investigation.--The Department of Revenue may examine
13and audit books and records of the licensed business entity
14conducting a horse racing meeting and may hear testimony and
15accept evidence or other data. The Department of Revenue may
16order an account for the tax due to the Commonwealth together
17with the expense of the examination. A penalty of 5% and
18interest at the rate of 1% per month from the due date to the
19date of payment of the tax shall be payable if tax imposed under
20this section is not paid when due.

21Section 209-A. Licenses for horse racing meetings.

22(a) Procedure and terms.--

23(1) After January 1, 2015, a business entity desiring to
24conduct horse racing meetings for which a Category 1 license
25has been issued and at which pari-mutuel wagering is
26permitted may apply to the board for a license or the renewal
27of an existing license.

28(2) A licensed business entity shall have the privilege
29to conduct a horse racing meeting at which pari-mutuel
30wagering is permitted. A license to conduct a horse racing

1meeting shall not be a property right.

2(3) The board may revoke or suspend the license of a
3licensed business entity if the board finds that the business
4entity, its owners, officers, managers or agents, has not
5complied with this act and regulations promulgated in
6accordance with this act.

7(4) A licensed business entity may not transfer a
8license without the approval of the board.

9(b) Conditions.--Each horse racing license shall be issued
10upon the following conditions:

11(1) A horse racing meeting at which pari-mutuel wagering
12is conducted shall be supervised by the board.

13(2) The conduct of pari-mutuel wagering shall also be
14supervised and subject to the Department of Revenue and
15regulations of the department.

16(3) The business entity posts a bond or irrevocable
17letter of credit payable to the board in an amount equal to
18the sum of the business entity's average weekly payment of
19the pari-mutuel tax, during active racing, into the State
20Racing Fund, based on revenues generated in the previous
21year.

22(4) The licensed business entity prints in its racing
23programs the procedure for filing a complaint with the board.

24(c) Applications.--Applications for a licensed business
25entity shall be in the form prescribed by the board and shall
26contain information as the board may require.

27(d) Grounds for denial, revocation or suspension.--The board
28may deny, revoke or suspend the license of a business entity, if
29it determines that:

30(1) Any owner, officer, director or manager of the

1business entity applying for a license or of any business
2entity which participates in the management of the affairs of
3the applicant, or which leases to the licensed business
4entity the track where it shall operate:

5(i) has been convicted of bookmaking or other forms
6of illegal gambling;

7(ii) has been convicted of any fraud or
8misrepresentation in connection with racing or breeding;

9(iii) has been convicted of any violation or attempt
10to violate any law, rule or regulation of any horse
11racing jurisdiction, for which suspension from horse
12racing might be imposed in that jurisdiction;

13(iv) has violated any rule, regulation or order of
14the board; or

15(v) has been convicted of a felony.

16(2) The experience, character or fitness of any owner,
17officer, director or manager of the licensed business entity
18is such that the participation of the person in horse racing
19or related activities would be inconsistent with the public
20interest or with the best interests of horse racing.

21(3) The licensed business entity does not have use of
22the racetrack or racetrack enclosure in accordance with the
23requirements of 4 Pa.C.S. Pt. II (relating to gaming).

24(4) A licensed business entity has commingled horsemen's
25funds in violation of section 235-A(c) or has refused to
26place on deposit a letter of credit under section 236-A.

27(5) The board determines that the licensed business
28entity has failed to properly maintain its racetrack and
29racetrack enclosure in good condition or to provide adequate
30capital improvements to the racetrack and racetrack enclosure

1as required under this act and 4 Pa.C.S. § 1404 (relating to
2distributions from licensee's revenue receipts).

3(e) Conditional licenses.--Pending a final determination
4under this section, the board may issue a conditional license
5upon such terms and conditions as are necessary to effectuate
6the provisions of this act.

7Section 210-A. (Reserved).

8Section 211-A. Financial and employment interests.

9(a) General rule.--A business entity applying for a license
10or a licensed business entity shall comply with the provisions
11of 4 Pa.C.S. §§ 1512 (relating to financial and employment 
12interests), 1512.1 (relating to additional restrictions) and 
131513 (relating to political influence).

14(b) Gifts.--No owner, officer, manager or employee of an
15applicant or licensed business entity or their spouses, parents,
16fathers-in-law, mothers-in-law, siblings, children, sons-in-law
17or daughters-in-law shall accept gifts from breeders, owners,
18trainers or other individuals who participate in the conduct of
19horse racing in this Commonwealth.

20Section 212-A. Officials at horse racing meetings.

21All qualified judges and starters shall be approved by the
22board. For harness horse racing meetings, no person shall be
23approved as a judge or starter unless the person is licensed by
24the United States Trotting Association as a duly qualified pari-
25mutuel racing meeting official. All officials shall enforce the
26law and shall provide written reports of the activities and
27conduct of horse racing meetings to the board. The compensation
28of these judges and starters shall be assessed to the licensed
29business entity.

30Section 213-A. Licenses for individuals.

1(a) General rule.--The board shall issue licenses to
2trainers, jockeys, drivers, horse owners and other individuals
3participating in horse racing and all other persons required to
4be licensed as determined by the board. The license shall not be
5a property right.

6(b) Fee.--The board shall fix and may establish classes for
7license fees to be paid by persons or licensed business
8entities. An occupational license fee shall not exceed $1,000.
9All fees shall be paid to the board and deposited into the State
10Racing Fund.

11(c) Application.--The application shall be in the form and
12contain the information as the board may require.

13(d) Duration.--All licenses shall be issued for three years
14and shall be renewed, upon payment of the required fee and
15continued compliance with this act.

16(e) Conditional license.--The board may establish a
17conditional license fee valid for four months within a 12-month
18period. No applicant may receive more than one conditional
19license within 12 months of the issuance of the applicant's
20preceding conditional license.

21(f) Processing and issuance.--The board shall adopt
22regulations to fix the manner by which licenses are processed
23and issued.

24(g) Denial.--The board may deny a license under this
25section, if it determines that the applicant:

26(1) Has been convicted of bookmaking or other forms of
27illegal gambling.

28(2) Has been convicted of any fraud or misrepresentation
29in connection with racing or breeding.

30(3) Has been convicted of any violation or attempt to

1violate any law, rule or regulation of racing in any
2jurisdiction, for which suspension from racing might be
3imposed in that jurisdiction.

4(4) Has violated any rule, regulation or order of the
5board.

6(5) Has been convicted of an offense relating to fixing
7races.

8(6) Has been convicted of a felony offense.

9(7) Has failed to comply with payment requirements under
10section 304 relating to testing for medication.

11(h) Inspection.--The board shall have the right to inspect
12all contracts between licensed business entities and vendors for
13goods and services. The board shall adopt regulations to require
14vendors to disclose all principal owners and officers and a
15description of their interests in the vendors' business. Failure
16to disclose this information shall constitute grounds to deny,
17to revoke or to suspend any vendor's license issued under this
18act.

19(i) Suspension, revocation and refusal to renew.--The board
20may suspend, refuse to renew or revoke a license issued under
21this section, if:

22(1) The applicant or licensee:

23(i) has been convicted of bookmaking or other form
24of illegal gambling;

25(ii) has been convicted of any fraud in connection
26with racing or breeding;

27(iii) has been convicted of any violation or attempt
28to violate any law, rule or regulation of any horse
29racing jurisdiction for which suspension from horse
30racing might be imposed in that jurisdiction;

1(iv) has violated any rule, regulation or order of
2the board;

3(v) has been convicted of a felony offense; or

4(vi) has failed to comply with payment requirements
5under section 304.

6(2) The experience or character of any applicant or
7licensee is such that the participation of the person in
8horse racing or related activities would be inconsistent with
9the public interest or with the best interests of horse
10racing.

11(3) The applicant or licensee has been convicted of an
12offense related to fixing races unless the conviction has
13been overturned on appeal under the laws of the jurisdiction
14of the original finding.

15(j) Temporary license.--Pending a final determination under
16this section, the board may issue a temporary license upon such
17terms and conditions as are necessary to effectuate the
18provisions of this act.

19(k) Hearings.--The board may suspend a license under
20subsection (i) pending a hearing on the matter. The hearing must
21take place within ten days of the suspension.

22(l) Reciprocity.--The board shall not grant licenses to
23citizens of states that prohibit the grant of licenses to
24citizens of this Commonwealth on the basis of in-state
25preference.

26Section 213.1-A. Totalisator.

27The following shall apply:

28(1) A person that provides totalisator services to a
29racing association located in this Commonwealth, including a
30totalisator company located in this Commonwealth or operating

1from a location outside this Commonwealth. A provider of
2totalisator services shall be licensed by the board and remit
3an annual license fee not to exceed $100,000. The license fee
4shall be deposited in the State Racing Fund. The provider
5shall submit information on operating systems and procedures
6as required by the board.

7(2) A manufacturer, wholesaler, distributor or vendor of
8any equine drug, medication, therapeutic substance or
9metabolic derivative purchased by or delivered to a licensee
10or other individual participating in horse racing in this
11Commonwealth by means of Internet, mail delivery, in person
12delivery or other means.

13Section 214-A. Power of board to impose fines.

14(a) General rule.--The board may impose administrative fines
15upon any licensed or unlicensed business entity, association or
16person participating in horse racing at which pari-mutuel
17wagering is conducted, other than as a patron, for a violation
18of any provision of this act, not exceeding $100,000 for each
19violation. Fines shall be deposited in the State Racing Fund and
20may be appropriated for the enforcement of this act.

21(b) Interests.--

22(1) No owner, officer or employee of a licensed business
23entity or their spouses, parents, fathers-in-law, mothers-in-
24law, siblings, children, sons-in-law or daughters-in-law
25shall have any direct or indirect interest in a race horse
26that is participating in a race at a meet at which the person
27or relative listed under this paragraph holds any interest in
28the licensed business entity conducting the meet or in the
29track facility.

30(2) The board shall impose a fine upon any person for a

1violation of this subsection in accordance with subsection
2(a).

3Section 215-A. Security personnel.

4(a) General rule.--The board shall require licensed business
5entities to employ persons as security personnel. Designated
6security personnel may interrogate and eject from the racetrack
7or enclosure any individual suspected of violating this act.

8(b) Penalty.--An individual found within a race track
9enclosure after having been refused admission thereto or ejected
10therefrom shall, upon conviction, be guilty of a summary offense
11and be sentenced to pay a fine of not more than $500.

12Section 216-A. Interstate simulcasting.

13The board may approve the application of a licensed business
14entity to electronically televise simulcasts of horse races to
15be operated by the licensed business entity at the race track
16enclosure where a horse race is being conducted during, between,
17before or after posted races for that racing day. Each simulcast
18of horse races from outside this Commonwealth shall comply with
19the Interstate Horseracing Act of 1978 (Public Law 95-515, 15
20U.S.C. § 3001 et seq.). All forms of pari-mutuel wagering under
21section 221-A shall be allowed on horse races to be televised by
22simulcasting. The board shall promulgate regulations regarding
23the wagering and the operation of the horse races. All money
24wagered on horse races shall be computed in the amount of money
25wagered each racing day for purposes of taxation under section
26222-A.

27Section 216.1-A. Televised simulcastings.

28(a) Host licensees.--Upon request by a licensed business
29entity, the board may designate the entity as a host licensee,
30authorized to maintain common pari-mutuel pools on international

1and interstate races transmitted to and from the racetrack
2enclosures within this Commonwealth. All simulcasts of horse
3races shall comply with the provisions of the Interstate
4Horseracing Act of 1978 (Public Law 95-515, 15 U.S.C. § 3001 et
5seq.) and the laws of each state involved, placed or transmitted
6by an individual in one state via telephone, Internet or other
7electronic media and accepted and maintained in common pari-
8mutuel pools. The designation as a host licensee for
9international and interstate simulcast races shall be limited to
10licensed business entities which comply with 4 Pa.C.S. § 1303(d)
11(relating to additional Category 1 slot machine license
12requirements).

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

14(1) Cross simulcasting of the races described in
15subsection (a) shall be permitted if all amounts wagered on
16the races in this Commonwealth are included in common pari-
17mutuel pools. A host licensee seeking permission to cross
18simulcast must obtain approval from the board.

19(2) Forms of pari-mutuel wagering shall be allowed on
20horse races to be televised by simulcasting. The board may
21permit pari-mutuel pools in this Commonwealth to be combined
22with pari-mutuel pools created under the laws of another
23jurisdiction and may permit pari-mutuel pools created under
24the laws of another jurisdiction to be combined with pari-
25mutuel pools in this Commonwealth. The board shall promulgate
26regulations necessary to regulate wagering on televised
27simulcasts.

28(c) Taxation.--Money wagered by patrons in this Commonwealth
29on the horse races shall be computed by the amount of money
30wagered each racing day for purposes of taxation under section

1222-A. Thoroughbred races shall be considered a part of a
2thoroughbred horse racing meeting and harness horse races shall
3be considered a part of a harness horse racing meeting.

4Section 217-A. (Reserved).

5Section 218.1-A. Place and manner of conducting pari-mutuel
6wagering.

7(a) Wagering location.--A licensed business entity shall
8provide a location during a horse racing meeting within the
9racetrack enclosure where the licensed business entity shall
10operate the pari-mutuel system of wagering by its patrons on the
11results of horse races held at the racetrack or televised to the
12racetrack enclosure by simulcasting under section 216.1-A. The
13licensed business entity shall erect a sign or board compatible
14with the totalisator systems which shall display all of the
15following:

16(1) The approximate straight odds on each horse in any
17race.

18(2) The value of a winning mutuel ticket, straight,
19place or show on the first three horses in the race.

20(3) The elapsed time of the race.

21(4) The value of a winning daily double ticket, if a
22daily double is conducted, and any other information that the
23board deems necessary to inform the general public.

24(b) Equipment.--The board may test and examine the equipment
25to be used for the display of the information under subsection
26(a).

27Section 218.2-A. Pari-mutuel wagering at nonprimary locations.

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

29(1) Notwithstanding any other provisions of this act,
30beginning January 2014, the board may approve a licensed

1business entity to continue to operate a nonprimary location
2where it has conducted pari-mutuel wagering on horse races
3conducted by the licensed business entity. The licensed
4business entity may continue to conduct pari-mutuel wagering
5at the location on horse races conducted by another licensed
6business entity, which horse races may be televised to the
7location or on horse races simulcast to the location under
8section 216-A, provided that:

9(i) A licensed business entity has not established a
10nonprimary location within the primary market area of any
11racetrack other than a racetrack where the licensed
12business entity conducts racing meetings. Establishment
13of a nonprimary location by a licensed business entity
14within the primary market area of a racetrack where the
15licensed business entity conducts racing meetings shall
16require approval of the board.

17(ii) A licensed business entity has not established
18a nonprimary location within the secondary market area of
19a racetrack if the nonprimary location is approved by the
20board.

21(iii) A licensed business entity has not established
22a nonprimary location in an area outside the primary and
23secondary market areas of any racetrack if the location
24is approved by the board.

25(2) Except as provided under paragraph (1), no
26additional licenses shall be permitted.

27(3) The board shall annually conduct inspections of the
28primary facility.

29(4) The rights, duties and obligations of the board
30shall apply to nonprimary locations and any employees or

1vendors of the licensed business entity establishing the
2nonprimary location.

3(b) (Reserved).

4(c) Taxation and records.--Money wagered at all primary and
5nonprimary locations under this act shall be included in common
6pari-mutuel pools. Money wagered by patrons on the races shall
7be computed by the amount of money wagered each racing day for
8purposes of taxation under section 222-A. The licensed business
9entity conducting the racing meeting and maintaining the pari-
10mutuel pools shall maintain accurate records of the amount
11wagered in each pool from every primary and nonprimary location.

12(d) Retention.--Money retained under section 222-A(e) shall
13be calculated for each location where pari-mutuel wagering is
14being conducted. If wagering has taken place at a nonprimary
15location where the wagering is conducted by a licensed business
16entity other than the licensed business entity conducting the
17racing meeting, the licensed business entity conducting the
18racing meeting shall retain any money to which it is entitled by
19agreement. The licensed business entity conducting the meeting
20shall pay over the balance of the retained money to the licensed
21business entity conducting the wagering at the nonprimary
22location.

23(e) Payment of purses.--A licensed business entity
24conducting a racing meeting where pari-mutuel wagering is
25conducted at one or more nonprimary locations shall distribute
26money to the horseman's organization representing a majority of
27owners and trainers at its racetrack, or in accordance with the
28practice of the parties, to be used for payment of purses at
29that racetrack, as follows:

30(1) Except as provided for in paragraphs (2), (3), (4)

1and (5), an amount equal to but not less than 6% of the daily
2gross wagering handle on the races at a nonprimary location.

3(2) When the gross wagering handle on the races at a
4nonprimary location on a given day is less than $30,000, the
5percentage may not be less than 3%.

6(3) When the gross wagering handle on the races at a
7nonprimary location on a given day is between $30,000 and
8$75,000 inclusive, the percentage may not be less than 4.75%.

9(4) Whenever a nonprimary location is within the primary
10market area of a licensed business entity other than the
11licensed business entity conducting the races, the applicable
12percentage shall be distributed one-half to the horseman's
13organization representing a majority of owners and trainers
14at the racetrack or in accordance with the practice of the
15parties.

16(5) Where the racing meeting is being conducted to be
17used for the payment of purses at the racetrack and one-half
18to the horseman's organization, or in accordance with the
19practice of the parties, at the racetrack within the primary
20market area to be used for the payment of purses at the
21racetrack.

22Nothing in this subsection shall be construed to prevent a
23licensed business entity from agreeing to distribute amounts
24greater than the percentages set forth in this subsection.
25However, if no alternative agreement has been reached, the total
26percentage for purses under this subsection shall be paid in
27accordance with the minimum percentages set forth in this
28subparagraph.

29(f) Other payments.--Notwithstanding any other provision of
30this act, a nonprimary location may be established within the

1primary market area of a racetrack by agreement between the
2licensed business entity and the horseman's organization
3representing a majority of the owners and trainers at the
4racetrack specifying the total percentage of handle wagered at
5the nonprimary location to be distributed to the horseman's
6organization, or in accordance with the practice of the parties,
7to be used for the payment of purses at that racetrack. If no
8agreement is reached covering the locations, the total
9percentage to be paid for purses shall be the same as that
10applied to on-track wagering at the racetrack located within the
11primary market area.

12Section 219-A. Books and records of pari-mutuel wagering.

13Every Category 1 licensed facility that conducts a horse
14racing meeting at which pari-mutuel wagering is authorized,
15shall maintain books and records that clearly show by separate
16record the total amount of money contributed to every pari-
17mutuel pool. The Department of Revenue or its authorized
18representative shall have access to examine all books and
19records and ascertain whether the proper amount due to the State
20is being paid by the licensed business entity.

21Section 220-A. Filing of certain agreements with the board.

22A licensed business entity shall promptly file with the board
23a true and correct copy of any lease agreement concerning any
24concession, labor management relation, hiring of designated
25classes of officers, employees or contractors specified by the
26board or any other contract or agreement as the board may
27prescribe.

28Section 221-A. Tax.

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

1horse racing meetings shall pay a tax to the Department of
2Revenue for deposit in the State Racing Fund.

3(b) Tax rate.--The tax imposed on a licensed entity shall be
41.5% of the amount wagered each racing day and 2.5% of the total
5amount on an exacta wager.

6(c) Expenditures.--Funds collected and deposited under
7subsection (b) and any interest shall be used solely for the
8administration and enforcement of this act including:

9(1) Funds to the board in an amount appropriated by the
10General Assembly.

11(2) Funds to the Department of Revenue in an amount
12appropriated by the General Assembly.

13(d) Remainder.--The remainder of the money shall be
14distributed as follows:

15(1) An amount equivalent to 1% of the amount wagered
16each racing day at thoroughbred horse race meetings shall be
17paid by the Horse Racing Commission from the State Racing
18Fund through the Department of Revenue for credit to the
19Pennsylvania Breeding Fund.

20(2) An amount equivalent to 1.5% of the amount wagered
21each racing day at harness horse race meetings shall be paid
22by the Harness Racing Commission from the State Racing Fund
23through the Department of Revenue for credit to the
24Pennsylvania Sire Stakes Fund.

25(3) The remainder of the amount wagered each racing day
26shall be deposited in the State Racing Fund, for
27appropriation for projects relating to the promotion of horse
28racing.

29Section 222-A. Pari-mutuel pool distribution.

30(a) Distribution.--A licensed entity shall distribute money

1in a pari-mutuel pool to the holders of winning ticket presented
2for payment before the first day of April of the year following
3the date of purchase. After April 1 of the year following the
4year of purchase, a licensed business entity shall forward the
5necessary funds held for uncashed tickets to the Department of
6Revenue. The funds shall be deposited into the State Racing
7Fund.

8(b) Remainder.--The remainder of the money shall be retained
9by the licensed entity in the following manner:

10(1) Seventeen percent of the money plus the breakage
11from regular wagering pools or 19% of the money plus the
12breakage from regular wagering pools for licensed entities
13whose daily total in all pari-mutuel pools averaged less than
14$300,000.

15(2) Twenty percent of the money plus breakage from the
16exacta, daily double, quinella and other wagering pools as
17determined by the board.

18(3) At least 26%, but no more than 35%, from the
19trifecta or other wagering pools as determined by the board.

20(c) Retention.--A licensed entity may retain less
21percentages upon approval of the board.

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

26Section 223-A. Pennsylvania Breeding Fund.

27(a) Establishment.--There is hereby created a restricted
28account in the State Racing Fund to be known as the Pennsylvania
29Breeding Fund which shall consist of the money deposited under
30section 222-A.

1(b) Awards from the Pennsylvania Breeding Fund.--The
2Department of Revenue shall distribute money from the fund as
3follows:

4(1) An award of 30% of the purse earned by every
5registered Pennsylvania-bred thoroughbred racing horse sired
6by a registered Pennsylvania sire at the time of conception
7of the registered Pennsylvania-bred thoroughbred horse, or an
8award of 20% of the purse earned by every registered
9Pennsylvania-bred thoroughbred horse sired by a nonregistered
10sire, which finishes first, second or third in any race
11conducted by a licensed business entity under this act shall
12be paid to the breeder of said registered Pennsylvania-bred
13thoroughbred horse. A single award under this paragraph may
14not exceed 1% of the total annual fund money.

15(2) An award of 10% of the purse earned by any
16Pennsylvania-bred thoroughbred horse which finishes first,
17second or third in any race conducted by a licensed business
18entity under this act shall be paid to the owner of the
19registered Pennsylvania sire which regularly stood in
20Pennsylvania at the time of conception of the Pennsylvania-
21bred thoroughbred horse. A single award under this paragraph
22may not exceed 0.5% of the total annual fund money.

23(3) An award of 10% of the purse earned by any
24registered Pennsylvania-bred thoroughbred horse which
25finishes first in any race conducted by a licensed business
26entity under this act not restricting entry to registered
27Pennsylvania-bred thoroughbred horses shall be paid to the
28licensed owner of said registered Pennsylvania-bred
29thoroughbred horse at the time of winning. A single award
30under this paragraph may not exceed 0.5% of the total annual

1fund money.

2(c) Purses from Pennsylvania Breeding Fund.--Up to one-fifth
3of the total of the estimated fund money remaining each year
4after the deduction of expenses related to the administration
5and development of the Pennsylvania Breeding Fund program and
6the payment of breeder, stallion and owner awards, shall be
7divided among the licensed business entities that conduct
8thoroughbred horse racing meetings in direct proportion to the
9rate by which each licensed business entity generated the fund
10money during the previous year to be used solely for purses for
11Pennsylvania Breeding Fund stakes races which restrict entry to
12registered Pennsylvania-bred thoroughbred horses.

13(d) Remaining funds.--The fund money remaining following
14disbursements as directed in subsection (b)(1), (2) and (3) and
15subsection (c) shall be divided among the licensed business
16entities that conduct thoroughbred horse racing meetings in
17direct proportion to the rate by which each licensed business
18entity generated the fund money during the previous year to be
19used for purses as follows:

20(1) Claiming and nonclaiming Pennsylvania Breeding Fund
21races which restrict entry to registered Pennsylvania-bred
22thoroughbred horses.

23(2) Claiming and nonclaiming Pennsylvania Breeding Fund
24races which prefer registered Pennsylvania-bred thoroughbred
25horses as starters. In these races, should eight or more
26registered Pennsylvania-bred horses pass the entry box, the
27race shall be considered closed to horses other than
28registered Pennsylvania-bred thoroughbred horses.

29(e) Funds not expended.--Pennsylvania Breeding Fund money
30due licensed business entities, as outlined in subsections (c)

1and (d), but not expended during the calendar year may be
2carried forth in the fund on the accounts of the licensed
3business entities to be expended during the succeeding year in
4addition to the business entities' fund money annually due them
5for purses.

6(e.1) Committee.--There is hereby established the
7Pennsylvania Breeding Fund Advisory Committee. The committee
8shall consist of members, who are residents of Pennsylvania, to
9be appointed by the board by June 1 of each year. The committee
10shall consist of two members of the Pennsylvania Horse Breeders'
11Association, one member from the licensed corporations, one
12member from the association representing horsemen racing in
13Pennsylvania and one member of the board. If a member other than
14the board member has not been recommended by June 1 of each
15year, the board shall make an appointment for the organization
16failing to so recommend a member of the committee. The committee
17shall assist and advise the board under the provisions of this
18act but shall have no power in administering the fund. Members
19of the advisory committee shall not receive compensation or
20reimbursements for participation on the committee.

21(f) Pennsylvania Horse Breeders' Association.--The board may 
22contract with the Pennsylvania Horse Breeders' Association as 
23the organization responsible body for the registration and 
24records of Pennsylvania-bred horses. The Pennsylvania Horse 
25Breeders' Association shall advise the board when called upon 
26and shall determine the qualifications for Pennsylvania-bred 
27thoroughbred horses and Pennsylvania sires. Registration and 
28records of the association shall be official records of the 
29Commonwealth. At the close of each calendar year, the 
30Pennsylvania Horse Breeders' Association shall submit to the
 

1board for its approval an itemized budget of projected expenses 
2for the ensuing year relating to the administration and 
3development of the Pennsylvania Breeding Fund program. The board 
4shall reimburse the Pennsylvania Horse Breeders' Association for 
5those expenses actually incurred in the administration and
6development of the Pennsylvania Breeding Fund program from the
7fund, no more than on a quarterly basis.

8Section 224-A. Pennsylvania Sire Stakes Fund.

9(a) Establishment.--There is created a restricted account in
10the State Racing Fund to be known as the Pennsylvania Sire
11Stakes Fund which shall consist of the money deposited under
12section 222-A.

13(b) Distribution and use of funds.--Funds shall be
14distributed as follows:

15(1) Sixty percent of the money remaining in the excess
16fund account of the Pennsylvania Sire Stakes Fund at the end
17of the calendar year in which this subsection is enacted
18shall be distributed to licensed business entities that
19conduct harness horse racing meetings to be used in the next
20succeeding calendar year as purse money for Pennsylvania-
21sired horses. The remaining 40% of the money in the excess
22fund account at the end of the calendar year of the enactment
23of this subsection, together with the interest earned on that
24money, shall be distributed to licensed business entities
25that conduct harness horse racing meetings to be used in the
26next succeeding calendar year following the next succeeding
27calendar year as purse money for Pennsylvania-sired horses.

28(2) After deduction of sufficient funds to cover the
29board's cost of administration, 80% of all remaining money in
30the Pennsylvania Sire Stakes Fund at the end of the calendar

1year shall be distributed to licensed business entities that
2conduct harness horse racing meetings to be used as purse
3money for Pennsylvania-sired horses. The board may allocate
4up to a total of 40% of the amount to be distributed to
5licensed business entities in a calendar year for use for a
6series of championship final races at the race tracks of
7licensed business entities that conduct harness horse racing
8meetings. The Department of Revenue shall distribute the
9money to these championship final races in an equal amount
10for each sex, age and gait for two-year-old and three-year-
11old trotters and pacers based on conditions establishing
12eligibility to these final events. No pari-mutuel harness
13track shall be awarded more than 50% of the championship
14final races in any calendar year. The board shall schedule
15these final events so as to evenly alternate classes at each
16race track each year. After the allocation for the
17championship final races has been determined, the remaining
18funds to be distributed to licensed business entities that
19conduct harness horse racing meetings shall be divided
20equally among the licensed business entities. Each licensed
21business entity shall divide the funds received equally for
22each of:

23(i) four two-year-old races; one pace for colts, one
24pace for fillies, one trot for colts and one trot for
25fillies; and

26(ii) four three-year-old races; one pace for colts,
27one pace for fillies, one trot for colts and one trot for
28fillies.

29(c) Purse money.--Each allotment shall provide purse money
30for the respective races. The purse money shall be in addition

1to any entry fees or other funds available.

2(d) Entry restriction.--Entry for these races shall be
3limited to harness horses which were sired by a standardbred
4stallion regularly standing in Pennsylvania and each race shall
5be designated a Pennsylvania sire stakes race. The board shall
6adopt regulations as necessary to administer the entry
7restriction.

8Section 225-A. Fair Fund proceeds.

9(a) Distribution.--The Department of Agriculture shall
10distribute money in the Fair Fund annually, on or before March
111, for reimbursement for each county agricultural society and
12each independent agricultural society conducting harness horse
13racing during its annual fair, other than races for two-year-old
14and three-year-old colts and fillies, an amount of money equal
15to that used during their annual fair as purse money for harness
16horse racing, track and stable maintenance, starting gate rental
17and the cost of all harness horse racing officials required
18during their annual fair. The reimbursement amount may not be
19more than $13,000, a minimum of $4,000 of which must be used for
20purse money and the balance of the allotment per fair, not used
21for purse money over the minimum $4,000 allotment, shall be used
22for the specific purposes referenced above or otherwise the
23allotment shall be retained in the fund.

24(b) Inspection.--The Department of Agriculture shall
25annually inspect each track facility and advise each operating
26fair about track maintenance which is necessary to ensure
27adequate racing surface during the course of scheduled fairs and
28racing events. If it is the opinion of the Department of
29Agriculture that the fair society or event sponsor is not
30adequately financing track maintenance, the Department of

1Revenue shall surcharge the Fair Fund account of the fair
2society or event sponsor to effectuate the remediation.

3Section 226-A. Hearing.

4If the board denies any license application or revokes or
5suspends any license granted, an applicant or licensee may
6demand, within ten days after notice of the decision of the
7board, a hearing before the board. The provisions of 2 Pa.C.S.
8Chs. 5 Subch. A (relating to practice and procedure of
9Commonwealth agencies) and 7 Subch. A (relating to judicial
10review of Commonwealth agency action) shall apply.

11Section 227-A. (Reserved).

12Section 228-A. Prohibition of wagering.

13No board member or employee of the board shall wager upon the
14outcome of any horse race conducted at a track at which pari-
15mutuel wagering is conducted by any licensed business entity of
16the board. No licensed business entity shall permit any person
17who is actually and apparently under 18 years of age to wager at
18a racing meeting conducted by the licensed business entity. No
19licensed business entity shall permit any person who is under 18
20years of age to attend a horse racing meeting conducted by the
21licensed business entity unless the person is accompanied by a
22parent or guardian. This section shall not be construed to
23prohibit persons under 18 years of age, who are legally
24employed, from being upon the race track premises for the sole
25purpose of engaging in the performance of their duties as
26employees.

27Section 229-A. Veterinarians and State stewards.

28(a) General rule.--The board shall have the authority to
29contract with licensed veterinarians and stewards to serve at
30each meeting conducted by a business entity licensed by the

1board. The board may employ other individuals as shall be
2necessary to carry out the responsibilities of this section.

3(b) Costs and compensation.--The costs and compensation of
4the horse racing veterinarians, State stewards and other
5individuals shall be fixed and paid by the board.

6(c) Steward requirements.--The board shall establish a job
7description and professional criteria for stewards to assure
8that they have a working knowledge of the horse racing industry.

9Section 230-A. (Reserved).

10Section 231-A. Free passes, cards or badges.

11(a) Issuance.--A licensed business entity may not issue a
12free pass, card or badge, without admission tax except to:

13(1) an owner, officer, employee or shareholder of the
14licensed business entity conducting the racing meeting;

15(2) a member, officer or employee of the board;

16(3) a member of a horse racing association of another
17state or foreign country;

18(4) a public officer engaged in the performance of his
19duty;

20(5) an individual employed and accredited by the press
21to attend the meeting; or

22(6) an owner, stable manager, trainer, jockey,
23concessionary or other individual whose duties require a
24presence at the race track.

25(b) Promotions and discounts.--The board may approve a
26licensed business entity to issue a free pass, card or badge for
27a special promotional program and seasonal discount ticket
28program. The admission tax under section 208-A shall be imposed
29on the price of the seasonal discount tickets sold by a licensed
30business entity.

1(c) Regulations.--A free pass, card or badge shall be issued
2in accordance with regulations of the board.

3(d) List.--Except persons admitted under an approved special
4promotional program or seasonal discount ticket program, a list
5of the individuals to whom a free pass, card or badge is issued
6shall be filed with the board.

7Section 232-A. (Reserved).

8Section 233-A. Monitoring of wagering on video screens.

9A licensed business entity conducting pari-mutuel wagering
10shall display on video screens the approximate odds or
11approximate will-pays on each horse for each race as well as a
12combination of races, including quinellas, exactas, perfectas
13and any other combination or pool of races. A display of
14approximate odds or approximate will-pays is not required where
15the wager is on horses in four or more races, such as "Pick 4,
16Pick 5 or Pick 6." In addition to displaying the amount of money
17wagered, the approximate odds or approximate will-pays on each
18horse or combination of horses must be shown on video screens in
19each wagering division. For trifectas, in lieu of odds or
20approximate will-pays, the amount of money being wagered on each
21horse to win in the trifecta pool must be displayed on video
22screens separately from any other information. Information must
23be displayed from the opening of bets or wagering and be
24continually displayed until the wagering is closed. At least one
25video screen in each wagering division shall display the amount
26of money wagered on each horse involved in a trifecta pool.

27Section 234-A. Simulcasting.

28(a) General rule.--The board shall permit intrastate
29simulcasting of live racing.

30(b) Simulcast signal.--The simulcast signal shall be

1encoded, and the racetrack receiving the simulcast signal may
2not send the signal anywhere other than a public location
3authorized under section 218.1-A or 218.2-A.

4(c) Forms of pari-mutuel wagering.--The forms of pari-mutuel
5wagering described in section 221-A are allowed on a race to be
6televised by simulcasting under this section.

7(d) Regulations.--The board may promulgate regulations on
8wagering and the operation of horse racing.

9(e) Computation of money wagered.--The money wagered by a
10patron on a race must be computed in the amount of money wagered
11each racing day for purposes of taxation under section 222-A.

12(f) Thoroughbred and harness horse racetracks.--If a
13simulcast is between a thoroughbred racetrack and a harness
14horse racetrack, the board has jurisdiction. An approval
15required under this section must be received from the board,
16provided that if an agreement is not reached between the
17organization representing the horsemen, the licensed business
18entity may petition the court of common pleas in the county in
19which the licensed entity's racetrack is located. The court of
20common pleas may direct the organization representing the
21horsemen to approve the simulcast agreement upon good cause
22shown by the licensed business entity that failure to consent
23would be detrimental to the racing industry in this
24Commonwealth. The board may authorize the simulcasting if the
25simulcasting will have a significant value to the racing
26industry in this Commonwealth.

27(g) Definition.--As used in this section, the term "racing
28day" consists of a minimum of eight live races, except at
29thoroughbred tracks on Breeders' Cup Event Day.

30Section 235-A. Commingling.

1(a) Applicability.--This section is applicable only to
2licensed business entities that conduct thoroughbred racing.

3(b) Race secretary.--The race secretary shall receive
4entries and declarations as an agent for the licensed business
5entity for which the race secretary acts. The race secretary or
6an individual designated by the licensed business entity may
7receive stakes, forfeits, entrance money, jockey fees and other
8fees, purchase money in claiming races and other money that can
9properly come into the race secretary's possession as an agent
10for the licensed business entity for which the race secretary or
11designee is acting.

12(c) Horsemen's Account.--A licensed business entity shall
13maintain a separate account, to be known as a Horsemen's 
14Account. Money owed to owners in regard to purses, stakes,
15rewards, claims and deposits shall be deposited into the
16Horsemen's Account. Funds in the account are recognized and
17denominated as being the sole property of owners. Deposited
18funds may not be commingled with funds of the licensed business
19entity unless a licensed business entity established an
20irrevocable clean letter of credit with an evergreen clause in 
21favor of the organization which represents a majority of the 
22owners and trainers racing with the licensed business entity.
23The minimum amount of the credit must be the greater of
24$1,000,000 or 110% of the highest monthly balance in the
25Horsemen's Account in the immediate prior year. To calculate the
26monthly balance in the Horsemen's Account, the sum of the daily
27balances shall be divided by the number of days in the month.
28The evergreen clause must provide that:

29(1) thirty days prior to the expiration of the letter of
30credit, the financial institution can elect not to renew the

1letter of credit;

2(2) upon an election under paragraph (1), the financial
3institution must notify the designee of the organization that
4represents a majority of the owners and trainers racing with
5the licensed business entity, by registered mail, return
6receipt requested, of the election not to renew; and

7(3) the financial institution will honor the letter of
8credit for six months after expiration.

9Purse money earned by owners shall be deposited by the licensed
10business entity in the Horsemen's Account within 48 hours after
11the result of the race in which the money was earned has been
12declared official and the purse has been released by the board.

13(d) Bookkeeper.--A licensed business entity shall designate
14a bookkeeper who is authorized to receive and disburse funds
15from the Horsemen's Account. The bookkeeper must be bonded to
16provide indemnity for malfeasance, nonfeasance and misfeasance.
17A certified copy of the bond shall be filed with the board.

18(e) Examination, access and records.--The Horsemen's Account
19and the investment and deposit schedules relating to the account
20are subject to examination, at reasonable times, by a designee
21of the organization which represents a majority of the owners
22and trainers racing with the licensed business entity and by the
23board. The bookkeeper shall provide each owner with access, at
24reasonable times during a racing day, to the amount of funds in
25the Horsemen's Account credited to that owner. At the close of a
26horse racing meeting, the bookkeeper shall mail to each owner a
27record of deposits, withdrawals and transfers affecting the
28amount of funds in the Horsemen's Account credited to that
29owner.

30(f) Auditing and monthly statements.--The Horsemen's Account

1shall be audited annually and at any other time determined by
2the board. Monthly statements shall be provided to the designee
3of the organization which represents a majority of the owners
4and trainers racing with the licensed business entity.

5(g) Interest.--Fifty percent of the money earned as interest
6on funds in the Horsemen's Account shall be paid to the
7organization that represents a majority of the owners and
8trainers racing with the licensed business entity on a weekly
9basis. The amount is for the benefit of the horsemen as
10determined by the organization that represents the majority of
11the owners and trainers racing with the licensed business
12entity. The remaining 50% of the interest earned is for the
13benefit of the licensed business entity that has the
14responsibility to fund the costs associated with the
15administration of the fund. Interest each month must be earned
16in an amount equal to the Federal Reserve Discount Rate on the
17first day of the month.

18Section 236-A. Harness horse racing purse money.

19A licensed harness horse racing association must place on
20deposit with the board by March 1 of each year an irrevocable
21letter of credit equivalent to its average weekly purse total
22from the immediate prior year. The board shall hold the letter
23of credit in trust for the harness horsemen racing at that
24licensed business entity's horse race meeting if the purse
25checks are not issued or insufficient funds are available to
26cover the purse checks.

27Section 237-A. (Reserved).

28Section 238-A. Agricultural society horse racing.

29The Department of Agriculture shall promulgate regulations to
30oversee horse racing conducted by a county agricultural society

1or an independent agricultural society, as provided for under
2section 5(1)(iii) and (iv) of the act of July 8, 1986 (P.L.437,
3No.92), known as the Pennsylvania Agricultural Fair Act.

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

5Section 301. Mandatory requirements for medication rules.

6(a) [The commissions shall have in effect at all times when]
7When a licensed [corporation] business entity conducts a horse
8racing meeting with pari-mutuel wagering the board shall have in 
9effect rules or regulations to control the use and
10administration of any medication and the use and administration
11of any device that affects the performance of a race horse. The
12[commissions] board may establish permitted tolerance levels and
13therapeutic dose allowances for all medication to be used or
14administered to a race horse.

15(b) The [commissions] board shall establish in their rules 
16or regulations penalty provisions for the violation of these 
17rules or regulations.

18Section 5. Section 302(a) and (c) of the act, amended May
1916, 1986 (P.L.205, No.63), are amended to read:

20Section 302. Establishment of the Pennsylvania Race Horse
21Testing Program.

22(a) There is hereby established the Pennsylvania Race Horse
23Testing Program. The program shall be administered by [a
24management committee composed of the two chairpersons of the
25commissions, the Secretary of Agriculture and two persons
26appointed by the Governor. One person appointed by the Governor
27must be a doctor of veterinary medicine or a veterinary medical
28doctor and a member of the faculty of a school of veterinary
29medicine located within this Commonwealth and the other person
30must be employed within the private sector and have a background

1in biological and/or chemical laboratory management. The program
2is placed in and made a part of the Department of Agriculture]
3the board. All costs of the program shall be paid by the
4[commissions] fees collected under section 304. [Subject to all
5provisions of the act of April 9, 1929 (P.L.177, No.175), known
6as "The Administrative Code of 1929," that apply to the
7department, the management committee shall appoint and direct
8all personnel as necessary, establish a facility or contract for
9the provision of testing services, acquire all necessary
10equipment and supplies and adopt all necessary procedures.]

11* * *

12[(c) In order to evaluate the effectiveness of testing
13services performed by personnel of the Department of Agriculture
14and determine whether the manner in which these services are
15provided, the tests utilized and tolerance levels permitted
16should be modified, the commissions shall equally fund a
17contracted evaluation of existing laboratory services to be
18conducted by a nongovernmental entity with documented expertise
19to accurately evaluate existing laboratory services and
20formulate recommendations for improvement of the testing
21program. Upon review of the evaluation results, the department
22may implement in consultation with the management committee a
23program to improve laboratory services, including, if necessary
24and appropriate, the selection of a contractor or contractors to
25provide testing services. This study shall be completed on or
26before January 1, 1987, and copies provided to the Governor, the
27President pro tempore of the Senate, the Speaker of the House of
28Representatives and the members of the State Government
29Committees of the Senate and the House of Representatives within
3015 working days.]

1Section 6. Section 304 of the act is amended to read:

2Section 304. Costs of the enforcement of the medication rules
3or regulations.

4[All costs for the collection and testing samples for any 
5manner of medication shall be paid by the commissions.] The 
6board shall establish a fee schedule to be charged to horse 
7owners for the actual costs of the collections and testing for 
8medication. The costs of collections and testing shall include 
9the cost of equipment, supplies and facilities, except holding 
10barns or stables, to be located at race horse meeting 
11facilities, grounds or enclosures or at other locations 
12designated by the board, which shall be published in the 
13Pennsylvania Bulletin and shall be in effect 60 days after being 
14published.

15Section 7. This act shall take effect in 60 days.