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 <-and for the 
9cessation of the State Horse Racing Commission and the State 
10Harness Racing Commission.

11The General Assembly of the Commonwealth of Pennsylvania 
12hereby enacts as follows:

13Section 1. Section 102 of the act of December 17, 1981 
14(P.L.435, No.135), known as the Race Horse Industry Reform Act, 
15amended or added May 16, 1986 (P.L.205, No.63) and November 30, 
161988 (P.L.1090, No.127), is amended to read:

17Section 102. Definitions.

18The following words and phrases when used in this act shall
19have, unless the context clearly indicates otherwise, the
20meanings given to them in this section:

<-21["Air mile." A unit of distance equal to 1,852 kilometers or

15,280 feet for purposes of this act.<-]

2"Board." The Pennsylvania Gaming Control Board.

3"Bureau." The Bureau of Horse Racing.

4"Business entity." A person, corporation, business trust,
5estate, limited liability partnership or other form of legal
6business entity.

7"Clean letter of credit." A letter of credit which is
8available to the beneficiary against presentation of only a
9draft or receipt.

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

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

<-16"Electronic wagering." A legal wager placed by an individual
17in this Commonwealth related only to the outcome of a horse race
18taking place in this Commonwealth, placed or transmitted by an
19individual through telephone or any electronic media approved by
20the board and accepted by a licensed business entity or its
21approved off-track betting system located in this Commonwealth.

22"Evergreen clause." A term in a letter of credit providing
23for automatic renewal of the letter of credit.

<-24"Harness horse racing." A form of standardbred horse racing
25in which the horses participating are attached "in harnesses" to
26a sulky or other similar vehicle, at a specific gait, either a
27trot or pace, and the vehicle is being driven by a person.

28"Horse racing." <-Harness <-Standardbred horse racing and
29thoroughbred horse racing.

30"Horseman's organization." A trade association which

1represents the majority of owners and trainers who own and race
2horses at a <-licensed racetrack.

3"Irrevocable clean letter of credit." A clean letter of
4credit which cannot be canceled or amended unless there is an
5agreement to cancel or amend among all parties to the letter of
6credit.

<-7"Land mile." A unit of distance equal to 1,852 kilometers or
85,280 feet.

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

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

<-18["Nonprimary location statement." The written statement
19pursuant to this act submitted to the appropriate commission by
20a licensed corporation planning to establish a nonprimary
21location.<-]

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

25"Racetrack." The physical facility where a licensed
26[corporation] business entity conducts thoroughbred or <-[harness<-] 
27standardbred race meetings respectively with pari-mutuel
28wagering.

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

<-1[corporation<-] business entity, shall be deemed to include at
2least one primary racetrack location at which horse [race]
3racing meetings authorized to be held by the licensed
4[corporation] business entities are conducted, and all primary,
5nonprimary, contiguous and noncontiguous locations of the
6licensed [corporation] business entity which are specifically
7approved by the [appropriate commission] board for conducting
8the pari-mutuel system of wagering on the results of horse
9[races] racing held at such meetings or [race] racing meetings
10conducted by another licensed [corporation] business entity or
11televised to such locations 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 <-land miles, not including the primary market
15area of 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"Standardbred horse racing." A form of horse racing in which
20the horses participating are attached "in harness" to a sulky or
21other similar vehicle, at a specific gait, either a trot or
22pace.

23"Thoroughbred horse racing." The form of horse racing in
24which each participating horse is mounted by a jockey, is duly
25registered with The Jockey Club of New York and engages in horse
26racing <-on the flat, which may include a steeplechase or hurdle
27race.

28"Totalisator." A computer system used to pool wagers, record 
29sales, calculate payoffs and display wagering data on a display 
30device that is located at a pari-mutuel facility or nonprimary
 

1location.

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

3[CHAPTER 2

4STATE HORSE RACING COMMISSION AND STATE HARNESS

5RACING COMMISSION

6Section 201. Establishment of the commissions.

7(a) The State Horse Racing Commission is hereby established
8as a departmental administrative commission within the
9Department of Agriculture. The commission shall have general
10jurisdiction over all pari-mutuel thoroughbred horse racing
11activities in the Commonwealth and the corporations engaged
12therein. For the purposes of this act, "thoroughbred horse
13racing" means that form of horse racing in which each
14participating horse is mounted by a jockey, is duly registered
15with the Jockey Club, New York, New York and engages in races on
16the flat. Thoroughbred horse racing may include a steeplechase
17or hurdle race. The commission shall consist of three members
18who shall be appointed by the Governor, by and with the advice
19and consent of the Senate. Each commissioner shall hold office
20for a term of three years and until a successor is qualified.

21(b) The State Harness Racing Commission is hereby
22established as a departmental administrative commission within
23the Department of Agriculture. The commission shall have general
24jurisdiction over all pari-mutuel harness racing activities in
25the Commonwealth and the corporations engaged therein. The
26commission shall consist of three members who shall be appointed
27by the Governor, by and with the advice and consent of the
28Senate. Each commissioner shall hold office for a term of three
29years and until a successor is qualified.

30(c) The commissioners shall be reimbursed for documented

1expenses incurred in the performance of their official duties.
2The commissioners shall be paid $150 per diem for performing
3their duties as directed by the Secretary of Agriculture. One of
4the commissioners for each commission shall be appointed by the
5Governor as chairperson. The commissioner appointed by the
6Governor as chairperson shall serve in that position at the
7pleasure of the Governor. The Secretary of Agriculture or his
8designee shall be a nonvoting ex officio member of the
9commissions. The commissions shall meet at least once a month
10and at other times as the Secretary of Agriculture or the
11commission chairperson deems necessary. Adequate public notice
12of the time and place of the meetings shall be given. A
13commissioner who fails to attend three consecutive meetings
14shall be subject to removal. A commissioner shall be excused
15from meetings due to illness or death of an immediate family
16member. All commissioners shall be licensed under the provisions
17of section 213.

18(d) Each commission shall engage an executive secretary,
19deputies, secretaries, officers and representatives as it may
20deem necessary, who shall serve during its pleasure. The
21commissions shall also engage other employees as they see fit
22and whose duties shall be prescribed by the commissions and
23whose compensation shall be fixed by the commissions within the
24appropriations available. Legal counsel for the commissions
25shall be appointed in accordance with the act of October 15,
261980 (P.L.950, No.164), known as the "Commonwealth Attorneys
27Act." Each commission shall be subject to the provisions of the
28act of April 9, 1929 (P.L.177, No.175), known as "The
29Administrative Code of 1929," as to classification and
30compensation for all its employees.

1(e) It shall be the duty of the executive secretary to keep
2a full and faithful record of the proceedings of the
3commissions, preserve at the general office of the commissions
4all books, maps, documents and papers entrusted to the executive
5secretary's care, prepare for service the papers and notices as
6may be required by the commissions and perform other duties as
7the commissions may prescribe. It shall be the duty of the
8executive secretary to keep, at the offices of the commissions,
9a docket setting forth the names of all stockholders in all
10corporations licensed under this act, the number of shares held
11by each stockholder and the date on which each shareholder
12acquired stock in the licensed corporation. The docket shall be
13open for public inspection. It shall be the duty of the
14executive secretary to appear before the Appropriations
15Committees of the Senate and the House of Representatives for
16budgetary review and recommendations.

17(f) The commissions or designated officers, employees or
18agents of the commissions shall have the power to administer
19oaths and examine witnesses and may issue subpoenas to compel
20attendance of witnesses and production of all relevant and
21material reports, books, papers, documents, correspondence and
22other evidence. The commissions shall, annually, make a full
23report to the Secretary of Agriculture of their proceedings for
24the preceding calendar year and suggestions and recommendations
25as they see fit. The commissions shall exercise their powers and
26duties in accordance with the provisions of "The Administrative
27Code of 1929."

28(g) The terms and termination dates of the terms of the
29three commissioners who constitute the State Horse Racing
30Commission under the act of December 11, 1967 (P.L.707, No.331),

1referred to as the Pennsylvania Thoroughbred Horse Racing Law,
2shall continue under this act. Any commissioner whose term has
3already expired on the effective date of this act and who has
4not been replaced by a new member or has not been confirmed for
5another term, shall continue in his or her present status until
6replaced by a new member or confirmed for another term.

7(h) The terms and termination dates of the terms of the
8three commissioners who constitute the State Harness Racing
9Commission under the act of December 22, 1959 (P.L.1978,
10No.728), referred to as the Pennsylvania Harness Racing Law,
11shall continue under this act. Any commissioner whose term has
12already expired on the effective date of this section and who
13has not been replaced by a new member or has not been confirmed
14for another term, shall continue in his or her present status
15until replaced by a new member or confirmed for another term.

16(i) All rules and regulations promulgated under the
17provisions of the Pennsylvania Thoroughbred Horse Racing Law and
18the Pennsylvania Harness Racing Law shall remain in effect
19except to the extent that they are in direct conflict with the
20provisions of this act. The commissions may amend, revise or
21alter these rules and regulations as they deem necessary.

22(j) All licenses issued under the provisions of section 11
23of the Pennsylvania Thoroughbred Horse Racing Law and under the
24provisions of section 9 of the Pennsylvania Harness Racing Law,
25shall remain in effect for the remainder of the term for which
26these licenses were issued. After these licenses have expired,
27all renewals or new licenses shall be issued under the
28provisions of this act.

29(k) All licenses issued to corporations under the provisions
30of section 7 of the Pennsylvania Thoroughbred Horse Racing Law

1and under the provisions of section 7 of the Pennsylvania
2Harness Racing Law, shall continue with the same force and
3effect and shall be governed by the provisions of section 209.

4Section 202. General powers of the commissions.

5(a) The State Horse Racing Commission shall have the power
6to supervise all thoroughbred horse race meetings at which pari-
7mutuel wagering is conducted. The State Harness Racing
8Commission shall have the power to supervise all harness horse
9racing meetings at which pari-mutuel wagering is conducted. The
10commissions may adopt rules and regulations to effect the
11purposes and provisions of this act.

12(b) Without limiting the generality of the foregoing and in
13addition to its other powers:

14(1) Each commission shall have power to fix a minimum
15charge for admission to horse race meetings at which pari-
16mutuel wagering is conducted, but the minimum charge shall
17not be less than 50¢ for general admission, exclusive of
18taxes. The commissions shall have power to fix the charge for
19admission of soldiers, sailors and marines, in uniform, at
20one-half of the amount fixed for general admission, whether
21or not the one-half of the amount fixed is less than the
22minimum prescribed therein.

23(2) Each commission shall at all times have in effect
24rules and regulations as required under Chapter 3 regarding
25medication rules and enforcement provisions.

26(3) The rules of the commissions shall also provide that
27all winning pari-mutuel tickets must be presented for payment
28before April 1 of the year following the year of their
29purchase and failure to present the ticket within the
30prescribed period of time shall constitute a waiver of the

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

23(4) The commissions may adopt a general promotion
24program to assist the licensed corporations in increasing
25their attendance and average daily handle. Any expenditures
26for a promotional program shall be authorized and approved in
27the same manner as other operational costs of the
28commissions.

29(5) In the event that a state bordering Pennsylvania
30enacts a wagering tax scheme that may place Pennsylvania

1horse race meetings at a competitive disadvantage in the
2purses that can be offered for horse races, a licensed
3corporation may petition the appropriate commission for an
4emergency financial grant to augment its purse structure. If
5the appropriate commission finds that the effect of the
6enacted wagering tax scheme of a bordering state is to place
7Pennsylvania horse race meetings at a competitive
8disadvantage in purse structure, the appropriate commission
9shall make an emergency financial grant to the petitioning
10licensed corporation for augmentation to its purse structure
11out of moneys that the commission has budgeted for this
12purpose; provided, however, that the Secretary of Agriculture
13and the Secretary of the Office of Budget and Administration
14have also agreed to the grant.

15(c) The State Harness Racing Commission shall have
16jurisdiction over and shall promulgate regulations as necessary
17for the proper administration of all racing conducted by a
18county agricultural society or an independent agricultural
19society, as provided for under section 5(1)(iii) and (iv) of the
20act of July 8, 1986 (P.L.437, No.92), known as the "Pennsylvania
21Agricultural Fair Act."

22Section 203.

23(c) No corporation shall have the right to conduct any horse
24race meet except on obtaining a license from the appropriate
25commission and at the location or locations designated in its
26license or any amendment thereto or as approved at any time by
27the commission as the place or places at which it was proposed
28to conduct its business. This restriction shall not apply to any
29corporation whose racing plant or usefulness, in the discretion
30of the appropriate commissions, shall, for any reason beyond the

1control of the corporation, be totally destroyed or so
2substantially interfered with as to render same unfit for
3continued operation. Pending the rebuilding or restoration of
4its usefulness, or the making of the required repairs to the
5plant or the part destroyed or damaged, the commissions may
6license such corporation to conduct its horse race meetings at
7any other suitable location.

8Section 204. Filing of information concerning stock transfers;
9necessity for commissions' approval.

10(a) Whenever a transfer of stock comprising an interest of
115% or more in any licensed corporation, or comprising an
12interest of 5% or more in any corporation which leases to a
13licensed corporation the track facility at which it conducts
14pari-mutuel horse races or comprising an interest of 5% or more
15in any corporation which owns 25% or more of the stock of the
16licensed corporation shall be made, there shall be filed,
17simultaneously, with the corporation which issued such stock the
18following:

19(1) In duplicate, an affidavit executed by the
20transferee of the interest stating that he is to be the sole
21beneficial owner thereof, and whether or not he:

22(i) has been convicted of a crime involving moral
23turpitude;

24(ii) has been engaged in bookmaking or other forms
25of illegal gambling;

26(iii) has been found guilty of any fraud or
27misrepresentation in connection with racing or breeding;

28(iv) has been guilty of any violation or attempt to
29violate any law, rule or regulation of any racing
30jurisdiction, for which suspension from racing might be

1imposed in such jurisdiction; or

2(v) has violated any rule, regulation or order of
3the commissions.

4If the transferee of the interest is not, or is not to be,
5the sole beneficial owner, there shall be annexed to the
6affidavit of the transferee, and expressly stated in such
7affidavit, a true and complete copy of all terms of the
8agreement pursuant to which the interest in the corporation
9is to be held by the transferee, including a detailed
10statement of the interest of each person who is to have any
11interest therein.

12(2) In duplicate, an affidavit executed by each person
13for whom the interest is to be held by the transferee,
14setting forth whether or not the affiant:

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

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

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

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

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

27To each of the affidavits shall be annexed, and expressly
28stated in such affidavit, a true and complete copy of all the
29terms of the agreement pursuant to which the interest is to
30be held by the transferee, including a detailed statement of

1the interest of each person who is to have any interest
2therein. The corporation shall file with the appropriate
3commission one of each duplicate affidavits.

4(b) If, after the filing of any affidavit required to be
5filed, there shall be any change in the status of any affiant
6with respect to any of the matters set forth in subsection (a)
7(1) of the affidavit filed, the affiant shall file with the
8corporation with which his affidavit was so filed a new
9affidavit, executed by him in duplicate, setting forth the
10change of status and the corporation shall file one of these
11affidavits with the appropriate commission.

12(c) Whenever any change shall be made in the amount, nature
13or of the interest of any person having an interest of 5% or
14more in any corporation, or any new interest of 5% or more shall
15be created therein, without a transfer as provided, the record
16owner of the stock, and each person whose interest has been
17attempted to be changed or created, shall file with the
18corporation which issued the stock, in duplicate, affidavits as
19provided by subsection (a)(1) and (2), except that these
20affidavits need not include the matter referred to in subsection
21(a) unless then required pursuant to subsection (b) and one copy
22thereof shall be filed by the corporation with the appropriate
23commission.

24(d) If the appropriate commission determines that it is
25inconsistent with the public interest, convenience, or
26necessity, or with the best interest of racing generally, that
27any person continue to be a stockholder of record, or the
28beneficial owner of any interest in stock standing in the name
29of another in any licensed corporation or of any corporation
30which leases to such licensed corporation the track at which it

1conducts pari-mutuel horse racing or which owned 25% or more of
2the stock of the licensee, the appropriate commission shall have
3full power and authority to order each stockholder or beneficial
4owner to dispose of his stock or interest within a period of
5time to be specified by the appropriate commission, which period
6the appropriate commission shall have full power to extend.

7(e) If the commissions shall make any order or direction as
8provided in subsection (d), the person aggrieved shall be given
9notice of the time and place of a hearing before the appropriate
10commission, at which time the appropriate commission will hear
11the person in reference thereto.

12Section 205. Number of horse racing corporations.

13(a) No more than six corporations shall be licensed by the
14State Horse Racing Commission to conduct a pari-mutuel meet or
15meets. No corporation licensed under this act to conduct harness
16racing with pari-mutuel wagering or under the act of December
1722, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
18Harness Racing Law, shall be licensed to conduct thoroughbred
19horse racing with pari-mutuel wagering.

20(b) No more than five corporations shall be licensed by the
21State Harness Racing Commission to conduct a pari-mutuel meet or
22meets. No corporation licensed under this act to conduct
23thoroughbred horse racing with pari-mutuel wagering or under the
24act of December 11, 1967 (P.L.707, No.331), referred to as the
25Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to
26conduct harness horse racing with pari-mutuel wagering.

27Section 206. Responsibilities of the Department of Revenue.

28The Department of Revenue is charged with the financial
29administration of pari-mutuel wagering under this act, as
30supplemented by the rules and regulations of the commissions.

1The Department of Revenue shall have authority to prescribe the
2forms and the system of accounting to be employed, and through
3its representatives shall, at all times, have power of access
4to, and examination of, any equipment relating to such wagering.

5Section 207. Allocation of racing days.

6(a) Up to 125 but no less than 25 racing days shall be
7allocated to each licensed corporation conducting thoroughbred
8horse race meetings in any calendar year; except, that upon
9request, the State Horse Racing Commission may grant up to an
10additional 25 racing days over the 125 days to a licensed
11corporation in each calendar year, if racing meet schedules can
12accommodate these extra days. Whenever two or more corporations
13licensed to conduct racing at the same facility apply to the
14State Horse Racing Commission for an allocation of racing days
15at the same facility, the commission shall allocate the racing
16days in the following manner:

17(1) If there is an agreement between the licensed
18corporations as to the allocation of racing days then as
19provided for therein.

20(2) If there is no agreement between the licensed
21corporations as to the allocation of racing days, then
22equally between them.

23(b) No more than 125 racing days shall be allocated to each
24licensed corporation conducting harness horse race meetings in
25any calendar year. Every corporation shall hold its license
26under the provisions of section 209. The State Harness Racing
27Commission shall allocate the racing days in accordance with the
28following guidelines:

29(1) A licensed corporation that has an ownership
30interest in the facility at which the racing days are to be

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

9(2) Whenever one or more licensed corporations that have
10an ownership interest in the facility at which the racing
11days are to be conducted apply to the State Harness Racing
12Commission for an allocation of racing days, the State
13Harness Racing Commission shall allocate an equal number of
14racing days to each licensed corporation or to each licensed
15corporation based upon an agreement between the licensed
16corporations as to the allocation of racing days.

17(3) Upon request the State Harness Racing Commission may
18grant up to an additional 25 racing days over the 125 racing
19days to a licensed corporation in each calendar year, and the
20commission may grant up to 50 additional days of racing if
21that corporation is the only corporation operating at the
22facility, if racing meet schedules can accommodate these
23extra racing days.

24(4) For purposes of this section, an ownership interest
25shall mean that a licensed corporation directly or through a
26parent or subsidiary has at least 35% equity interest in the
27track facility at which it conducts harness horse race
28meetings or is the primary tenant at such facility. For
29purposes of this subsection, a primary tenant shall be that
30licensed corporation, if any, which is a tenant conducting

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

11(c) The commissions shall certify to the Secretary of the
12Department of Revenue within 20 days after the allocation of
13racing days to licensed corporations the following information:

14(1) the names and addresses of the corporations;

15(2) the names and addresses of the presidents and
16general managers of the corporations;

17(3) the names and locations of the facilities where the
18racing days are to be conducted;

19(4) the number of racing days allocated to each
20corporation; and

21(5) a numbered list of each racing day assigned to each
22calendar day of the year for the purposes of taxation.

23(d) If a racing day is cancelled by a licensed corporation
24for reasons beyond its control, the appropriate commission shall
25grant the licensed corporation the right to conduct that racing
26day in the same or the next ensuing calendar year, if schedules
27permit. The racing day for purposes of taxation under section
28222 shall be at the lowest tax rate at which the licensed
29corporation conducted a racing day during that year.

30Section 208. State admissions taxes.

1(a) Every corporation holding a thoroughbred horse race
2meeting under this act shall collect, in addition to the
3admission price of tickets sold or otherwise disposed of, for
4each meeting held by the corporation, a tax equivalent to 15% of
5the admission price, or 15¢ whichever is greater. In case of
6failure to collect the tax, the tax shall be imposed upon the
7corporation holding the race meeting. The tax shall be paid to
8the Department of Revenue within ten days of collection. The
9amounts collected shall be paid into the State Treasury to the
10credit of the State Racing Fund. Before any corporation liable
11to pay the tax shall hold any race meeting, or exercise any of
12the powers conferred by this act, the corporation shall pay all
13taxes due, and shall file a statement with the Department of
14Revenue containing the name of the place and stating the time
15when the races are to be held. Nothing in this section shall
16apply to a race meeting conducted by any state, county or other
17agricultural association. Retroactive to September 1, 1981 and
18thereafter, the admission tax shall be decreased to a tax
19equivalent to 10% of the admission price. Then on September 1,
201982 and thereafter, the admission tax shall be decreased to a
21tax equivalent to 5% of the admission price.

22(b) Every corporation holding a harness horse race meeting
23shall collect, in addition to the admission price of tickets
24sold or otherwise disposed of, for each such meeting held by the
25corporation, a tax equivalent to 5% of the admission price. In
26case of failure to collect the tax, the tax shall be imposed
27upon the corporation holding the race meeting. The tax shall be
28paid to the Department of Revenue within ten days after the
29close of each race meeting. The amounts collected shall be paid
30into the State Treasury to the credit of the State Racing Fund.

1Before any corporation liable to pay the tax shall hold any race
2meeting, or exercise any of the powers conferred by this act,
3the corporation shall pay all taxes due and file a statement
4with the Department of Revenue containing the name of the place
5and stating the time when the races are to be held. Nothing in
6this section shall apply to a race meeting conducted by any
7state, county or other agricultural association.

8(c) The Department of Revenue shall have the power to
9examine the books and records of the corporation conducting any
10horse race meeting and may hear testimony and take proofs and
11material for its information, or from any other data which shall
12be satisfactory to it. The Department of Revenue may order and
13state an account for the tax due the State, together with the
14expense of such examination. A penalty of 5% and interest at the
15rate of 1% per month from the due date to the date of payment of
16the tax shall be payable in case any tax imposed by this section
17is not paid when due.

18Section 209. Licenses for horse race meetings.

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

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

8(b) Every license shall be issued upon the following
9conditions:

10(1) A horse race meeting at which pari-mutuel wagering
11is conducted is subject to the supervision of and to the
12reasonable rules and regulations prescribed by the
13appropriate commission.

14(2) Pari-mutuel wagering conducted is also subject to
15the supervision of and to the reasonable regulations
16prescribed by the Department of Revenue. Any license may also
17be issued upon any other condition that the appropriate
18commission determines to be necessary or desirable to insure
19that the public interest, convenience or necessity is served.

20(3) The corporation can prove by a preponderance of the
21evidence that it has obtained the use of a facility to
22conduct horse race meetings. The proof may be demonstrated by
23documentation of an ownership interest in the facility or by
24a written lease for use of the facility. For purposes of this
25paragraph, an ownership interest shall mean that a licensed
26corporation directly or through a parent or subsidiary has at
27least a 35% equity interest in the track facility at which it
28conducts horse race meetings or is the primary tenant at such
29facility. For purposes of this paragraph, a primary tenant
30shall be that licensed corporation, if any, which is a tenant

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

11(4) The corporation posts, in favor of the appropriate
12commission, a bond or irrevocable letter of credit in an
13amount equal to the sum of the corporation's average weekly
14payment, during active racing, into the State Racing Fund, as
15determined by the appropriate commission on the basis of the
16immediately preceding year, during the year for which dates
17are requested.

18(5) The licensed corporation prints in its racing
19programs the procedure for filing a complaint with the
20appropriate commission.

21(c) Applications for licenses shall be in the form
22prescribed by the appropriate commission and shall contain
23information, material or evidence as the appropriate commission
24may require. The term "racing week" shall include Sunday at the
25discretion of the licensed corporation.

26(d) In considering an application for a license to a
27corporation, the commissions may give consideration to the
28number of licenses already granted. No license shall be granted
29to any track located within ten miles of a State, county or
30other political subdivision fair conducting horse racing unless

1the association, corporation, society, political subdivision or
2State agency conducting the fair shall affirmatively waive
3objection to the issuance of the license for dates within the
4period.

5(e) The commissions may refuse to grant, may revoke, or may
6suspend a license to a corporation, if it shall determine that:

7(1) Any officer, director, member or stockholder of the
8corporation applying for a license or of any corporation
9which owns stock in or shares in the profits, or participates
10in the management of the affairs of the applicant, or which
11leases to the applicant the track where it shall operate:

12(i) has been convicted of a crime involving moral
13turpitude;

14(ii) has engaged in bookmaking or other forms of
15illegal gambling;

16(iii) has been found guilty of any fraud or
17misrepresentation in connection with racing or breeding;

18(iv) has been guilty of any violation or attempt to
19violate any law, rule or regulation of any racing
20jurisdiction, for which suspension from racing might be
21imposed in such jurisdiction; or

22(v) has violated any rule, regulation or order of
23the commissions.

24(2) The experience, character or fitness of any officer,
25director or stockholder of any of the corporations is such
26that the participation of the person in horse racing or
27related activities would be inconsistent with the public
28interest, convenience or necessity or with the best interests
29of racing. If the commission determines that the interest of
30any stockholder referred to in this paragraph or in paragraph

1(1) is insufficient to affect adversely the conduct of pari-
2mutuel horse racing by the corporation in accordance with the
3provisions of this act, the commissions may disregard the
4interest in determining whether or not to grant a license to
5the corporation.

6(3) The applicant is not the owner or the lessee of the
7track at which it will conduct pari-mutuel horse racing under
8the license applied for, or that any person, firm,
9association or corporation other than the applicant shares,
10or will share, in the profits of the applicant, other than by
11dividends as a stockholder, or participates, or will
12participate in the management of the affairs of the
13applicant.

14(4) The corporation does not have the use of a facility
15to conduct horse race meetings. Such use must be proved by a
16preponderance of the evidence. The proof may be demonstrated
17by documentation of an ownership interest in the facility or
18by a written lease for use of the facility.

19(5) A licensed corporation does not have proof of a
20written lease of a facility to conduct horse race meetings.
21Under this paragraph, the appropriate commission may suspend
22a license for a period of two years. After the expiration of
23the suspension, the appropriate commission may then revoke
24the license, if the licensed corporation has failed to
25contract for a facility at which to conduct horse race
26meetings.

27(6) A licensed corporation has commingled horsemen's
28funds in violation of section 235(c) or has refused to place
29on deposit a letter of credit under section 236.

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

1grant, revoke or suspend a license:

2(1) To any corporation, the charter or certificate of
3incorporation of which shall fail to contain a provision
4requiring any stockholder, upon written demand of the
5corporation, to sell his stock to the corporation at a price
6to be fixed by the appropriate commission, provided the
7demand be made pursuant to written direction of the
8appropriate commission and from the date of the making of the
9demand prohibiting the transfer of the certificate of stock
10except to the corporation.

11(2) To any corporation which, having been a licensee,
12has failed, in the opinion of the appropriate commission, to
13properly maintain its track and plant in good condition or
14has failed to make adequate provision for rehabilitation and
15capital improvements to its track and plant.

16(g) Pending final determination of any question under this
17section, the commissions may issue a temporary license upon such
18terms and conditions as they see fit to effectuate the
19provisions of this act.

20(h) The commissions shall have power to direct that every
21certificate of stock of a licensed corporation shall bear a
22legend, plainly and prominently imprinted upon the face of the
23certificate, reading: "This certificate of stock is transferable
24only subject to the provisions of the 'Race Horse Industry
25Reform Act'." The provisions of this subsection shall not apply
26to stock heretofore issued by a licensed corporation under the
27provisions of the act of December 11, 1967 (P.L.707, No.331), as
28amended, and referred to as the Pennsylvania Thoroughbred Horse
29Racing Law or of the act of December 22, 1959 (P.L.1978,
30No.728), as amended, and referred to as the Pennsylvania Harness

1Racing Law.

2Section 210. Shareholders.

3(a) Each licensed corporation shall, once a year, provide
4the appropriate commission with a complete list of all its
5shareholders, indicating the number of shares by each
6shareholder.

7(b) It shall be the duty of each licensed corporation within
8ten days after any transfer of stock comprising an interest of
95% or more in such licensee, to notify the appropriate
10commission of the transfer.

11(c) Each certificate of stock issued by a licensed
12corporation to a shareholder having a 5% or greater interest
13shall have noted on the face thereof that the person whose name
14is indicated as the owner of such shares of stock by the
15certificate is the sole and absolute owner, and that he is not
16holding such shares of stock or any portion of such shares of
17stock represented by the certificate in trust for any person,
18partnership, firm or corporation who or which is prohibited from
19owning such shares of stock. If any of such shares of stock
20represented by a certificate of stock are held subject to the
21terms of either an inter vivos or testamentary trust for the
22benefit of any person who could lawfully own such stock in his
23own name, the fact shall be noted on the face of the certificate
24and a copy of the instrument which created the trust shall be
25attached. A duplicate copy of the instrument which created the
26trust shall be filed with the appropriate commission.

27(d) No property rights shall exist in any shares of stock of
28any licensed corporation which are held in trust contrary to the
29provisions of this section and the same shall be forfeited to
30the Commonwealth after reasonable notice and upon hearing and

1proof thereof in any suit instituted by the Attorney General of
2Pennsylvania. Upon it being established that the stock is
3subject to forfeiture by legal adjudication, the appropriate
4commission shall sell the forfeited stock at public sale, upon
5proper notice, to the highest bidder. The proceeds from the sale
6shall be deposited in the General Fund of the Commonwealth of
7Pennsylvania.

8(e) As used in this section, the term "licensed corporation"
9shall include any licensed corporation as defined in section 102
10and also any firm, association or corporation which owns or
11leases to any licensed association or corporation a race track
12at which pari-mutuel racing is conducted, or any firm,
13association or corporation which participates in the management
14of any such licensed corporation.

15Section 211. Prohibition of interest by public officers, public
16employees and party officers in pari-mutuel racing
17activities.

18(a) No public officer, public employee or party officer
19shall:

20(1) hold any license to conduct a pari-mutuel meet from
21the commissions;

22(2) own or hold, directly or indirectly, any proprietary
23interest, stock or obligation of any firm, association or
24corporation:

25(i) which is licensed by the commissions to conduct
26pari-mutuel racing;

27(ii) which is licensed to conduct its occupation,
28trade or business at race tracks at which pari-mutuel
29race meets are conducted;

30(iii) which owns or leases to any licensed

1association or corporation a race track at which pari-
2mutuel racing is conducted; or

3(iv) which participates in the management of any
4licensed corporation conducting pari-mutuel racing; and

5(3) hold any office or employment with any firm,
6association or corporation specified in paragraph (2); or

7(4) sell or be a member of a firm or own 10% or more of
8the stock of any corporation which sells any goods or
9services to any firm, association or corporation specified in
10paragraph (2).

11The provisions of paragraph (3) shall not apply to a public
12employee other than a police officer or paid employee of a
13police department, sheriff's office, district attorney's office
14or other law enforcement agency so long as such employment of
15employees of a political subdivision may be prohibited by
16ordinance, resolution or local law.

17(b) A knowing and willful violation of this section shall be
18cause for removal from public office, public employment or party
19office. In any such case, the public officer, public employee or
20party officer, violating this section, shall be removed from
21office by appropriate authority having the power of removal.

22(c) The following words and phrases when used in this act
23shall have, unless the context clearly indicates otherwise, the
24meanings given to them in this section:

25"Party officer." The following members or officers of any
26political party:

27(1) a member of a national committee;

28(2) a chairman, vice-chairman, secretary, treasurer or
29counsel of a State committee or member of the executive
30committee of a State committee;

1(3) a county chairman, vice-chairman, counsel, secretary
2or treasurer of a county committee; or

3(4) a city chairman, vice-chairman, counsel, secretary
4or treasurer of a city committee.

5"Public employee." Every person employed by the Commonwealth
6or any political subdivision thereof.

7"Public officer." Every person elected to any public office
8of the Commonwealth or any political subdivision thereof.

9(d) The commissions shall have the power to refuse to grant
10or to revoke or suspend a license of any firm, association or
11corporation which aids or knowingly permits or conspires to
12permit any public officer, public employee or party officer to
13acquire or retain any interest prohibited by this section.

14(e) The provisions of this section shall allow any person
15other than members, employees or appointees of the commissions
16to own and to be licensed to race a horse at any licensed race
17track.

18Section 212. Officials at horse race meetings.

19(a) At all thoroughbred horse race meetings licensed by the
20State Horse Racing Commission, qualified judges and starters
21shall be approved by the commission. These officials shall
22enforce the rules and regulations of the State Horse Racing
23Commission and shall render written reports of the activities
24and conduct of such race meetings to the State Horse Racing
25Commission. The compensation of these judges and starters shall
26be paid by the corporation conducting the race meeting.

27(b) At all harness race meetings licensed by the State
28Harness Racing Commission, qualified judges and starters shall
29be approved by the commission. No person shall be approved as a
30judge or starter unless he is licensed by the United States

1Trotting Association as a duly qualified pari-mutuel race
2meeting official. The officials shall enforce the rules and
3regulations of the State Harness Racing Commission and shall
4render regular written reports of the activities and conduct of
5the race meetings to the State Harness Racing Commission. The
6compensation of the presiding judge and two associate judges at
7each race track shall be fixed and paid by the State Harness
8Racing Commission. The commission shall adopt a selection
9process to approve the appointment of these officials. The
10licensed corporations shall participate in this selection
11process for approval of these officials.

12Section 213. Licenses for commissioners, employees and
13participants at horse race meetings.

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

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

19(b) All commissioners and all employees, agents and
20representatives of the commissions shall be licensed under this
21act. There shall be no fee for this license. The commissions
22shall fix by rule or regulation the manner in which these
23licenses under this subsection shall be processed and issued.

24(c) If the commissions find that the experience, character
25and general fitness of the applicant are such that the
26participation of the person in horse race meets is consistent
27with the public interest, convenience and necessity, and with
28the best interests of racing generally in conformity with the
29purposes of this act, it may grant a license.

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

1section, if they shall find that the applicant:

2(1) Has been convicted of a crime involving moral
3turpitude.

4(2) Has engaged in bookmaking or other form of illegal
5gambling.

6(3) Has been found guilty of any fraud or
7misrepresentation in connection with racing or breeding.

8(4) Has been found guilty of any violation or attempt to
9violate any law, rule or regulation of racing in any
10jurisdiction, for which suspension from racing might be
11imposed in that jurisdiction.

12(5) Has violated any rule, regulation or order of the
13commissions.

14(d.1) The commissions shall refuse to issue a license under
15this section if they shall find that the applicant has been
16convicted of an offense relating to fixing races. This
17subsection shall not apply if the conviction is overturned on
18appeal under the laws of the jurisdiction of the original
19finding.

20(e) Each commission shall have the right to inspect all
21contracts between licensed corporations and vendors for goods
22and services. Each commission shall require by rule or
23regulation that vendors disclose to the appropriate commission
24all principal officers and a description of their interests in
25the vendors' business. Failure to properly disclose this
26information shall constitute grounds to deny, to revoke or to
27suspend any vendor's license issued under the provisions of this
28act.

29(f) The commissions may suspend, refuse to renew or revoke a
30license issued under this section, if it shall determine that:

1(1) The applicant or licensee:

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

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

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

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

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

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

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

21(f.1) The commissions shall suspend, refuse to renew or
22revoke a license issued under this section if it shall determine
23that the applicant or licensee has been convicted of an offense
24related to fixing races unless the conviction has been
25overturned on appeal under the laws of the jurisdiction of the
26original finding.

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

1(h) The commissions may suspend a license under subsection
2(f) pending a hearing on the matter. The hearing must take place
3within ten days of the suspension.

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

7Section 214. Power of commissions to impose fines and
8penalties.

9(a) In addition to their power to suspend or revoke licenses
10granted by them, the commissions are authorized and empowered to
11impose fines upon any corporation, association or person
12participating in any way in any horse race meet at which pari-
13mutuel wagering is conducted, other than as a patron and whether
14licensed by the commissions or not, for a violation of any
15provision of this act or the rules and regulations promulgated
16by the commissions, not exceeding $5,000 for each violation,
17which fines shall be paid into the State Treasury through the
18Department of Revenue and credited to the General Fund.
19Following exhaustion of any administrative remedies promulgated
20by the commissions for such purpose, the action of the
21commissions in imposing any monetary fine shall be subject to
22appeal to the Commonwealth Court and as approved by that court
23system, or if no court appeal is taken, then as imposed, may be
24collected in an action of assumpsit.

25(b) No officer or employee of a licensed corporation or
26their spouses, parents, fathers-in-law, mothers-in-law, sons,
27daughters, sons-in-law or daughters-in-law shall have any direct
28or indirect interest in a race horse that is participating in a
29race at a meet at which such person or heretofore-mentioned
30relative holds any interest in the licensed corporation

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

11(1) any breeder's fund award as a result of a horse
12being a registered Pennsylvania-bred thoroughbred horse under
13the provisions of section 223; and

14(2) any interest in a licensed corporation or track
15facility that was held by a person, partnership, association
16or corporation on or before January 1, 1988.

17Section 215. Security personnel; powers and duties; penalty.

18(a) The commissions and any licensed corporations are
19authorized and empowered to employ persons as security
20personnel. These persons shall possess the powers and duties of
21a peace officer with respect to the enforcement of the criminal
22laws of the Commonwealth within the race meeting grounds or
23enclosure. The designated persons are also authorized to
24interrogate and eject from the race meeting grounds or enclosure
25any persons suspected of violating any rule or regulation
26promulgated by the commissions. The commissions may refuse
27admission to and eject from enclosure of the race track operated
28by any licensed corporation, any person whose presence there is,
29in the judgment of the commission, inconsistent with the orderly
30or proper conduct of a race meeting or whose presence or conduct

1is deemed detrimental to the best interest of horse racing. The
2action of the commissions in refusing any person admission, or
3ejecting him from, a race meeting ground or enclosure shall not
4be because of the race, creed, color, sex, national origin or
5religion of that person and shall be reviewable by the
6Commonwealth Court.

7(b) Except as provided for in subsections (c) and (d), any
8licensed corporation may refuse admission to and eject from the
9enclosure of the race track operated by any association any
10person except that no person shall be refused admission or be
11ejected because of the race, color, creed, sex, national origin
12or religion of that person.

13(c) A licensed corporation may refuse admission to and eject
14from the enclosure of the race track operated by the
15corporation, any person licensed by the commissions under
16section 213, employed at his occupation at the race track, whose
17presence there is deemed detrimental to the best interests of
18horse racing, citing the reasons for that determination. The
19action of the corporation in refusing the person admission to or
20ejecting him from a race meeting ground or enclosure shall have
21immediate effect. The person refused admission or ejected shall
22receive a hearing before the appropriate commission, if
23requested, pursuant to rules and regulations adopted for that
24purpose by the appropriate commission and a decision rendered
25following that hearing.

26(d) A licensed corporation may not refuse admission to or
27eject a law enforcement official while that official is actually
28engaged in the performance of official duties.

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

1shall, upon conviction thereof in a summary proceeding, be
2sentenced to pay a fine not exceeding $300 or undergo
3imprisonment for a term not exceeding 90 days, or both.

4Section 216. Interstate simulcastings of horse races.

5Each commission may, upon request by any licensed
6corporation, grant permission for electronically televised
7simulcasts of horse races to be operated by the licensed
8corporation at the race track enclosure where a horse race
9meeting is being conducted during, between, before or after
10posted races for that racing day. The posted races for that
11racing day shall include a minimum of eight live races, except,
12at thoroughbred tracks on the one day designated as Breeders'
13Cup Event Day, there shall be a minimum of five live races. The
14simulcasts shall be limited to horse races conducted at
15facilities outside this Commonwealth and televised to race track
16enclosures within this Commonwealth. The simulcasts shall also
17be limited to thoroughbred races designated as Grade I stakes,
18or the international equivalent thereto, with purses of at least
19$100,000; standard bred races with purses of at least $100,000;
20and other stakes races which have, in the opinion of the
21appropriate commission, significant value to the Pennsylvania
22racing industry. Cross simulcasting of the aforementioned races
23shall be permitted as long as the particular race is available
24to all race tracks in the Commonwealth which are operating live
25racing that day. All simulcasts of horse races from outside this
26Commonwealth shall also comply with the provisions of the
27Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001
28et seq. All forms of pari-mutuel wagering as described under
29section 221 shall be allowed on horse races to be televised by
30simulcasting. Each commission may promulgate rules or

1regulations to regulate the wagering and the operation of these
2horse races. All moneys wagered by patrons on these horse races
3shall be computed in the amount of money wagered each racing day
4for purposes of taxation under section 222.

5Section 216.1. Televised international and interstate
6simulcastings of horse races.

7(a) Each commission may, upon request by a licensed
8corporation, grant permission to maintain common pari-mutuel
9pools on international and interstate races transmitted to and
10from the racetrack enclosures within this Commonwealth, such
11licensed corporation to be designated as the "host licensee."
12The permission to act as host licensee for international and
13interstate simulcast races shall be limited to licensed
14corporations:

15(1) which have a live racing agreement with a horseman's
16organization representing a majority of owners and trainers
17at the facility where the licensed corporation conducts
18racing dates;

19(2) which have scheduled 95% of the total number of
20horse or harness racing days scheduled in 1986 by it or its
21predecessor at the facility where the licensed corporation
22conducts racing dates; and

23(3) which, subject to actions or activities beyond the
24control of the licensee, conduct not less than eight live
25races per race date during each meet at the facility where
26the licensed corporation conducts racing dates, except for
27thoroughbred tracks on the day designated as Breeder's Cup
28Event Day, when the facility shall hold a minimum of five
29live races.

30A horseman's organization representing a majority of owners and

1trainers at a racetrack may consent to waiving or modifying the
2provisions pertaining to the required number of racing days and
3races per day scheduled by a licensed corporation at that
4racetrack.

5(b) Cross simulcasting of the races described in subsection
6(a) shall be permitted if all amounts wagered on the races in
7this Commonwealth are included in common pari-mutuel pools. A
8host licensee seeking permission to cross simulcast must obtain
9approval from both the State Harness Racing Commission and the
10State Horse Racing Commission. All simulcasts of horse races
11shall also comply with the provisions of the Interstate Horse
12Racing Act of 1978 (92 Stat. 1811, 15 U.S.C. § 3001 et seq.).
13All forms of pari-mutuel wagering as described under section 221
14shall be allowed on horse races to be televised by simulcasting.
15Each commission may permit pari-mutuel pools in this
16Commonwealth to be combined with pari-mutuel pools created under
17the laws of another jurisdiction and may permit pari-mutuel
18pools created under the laws of another jurisdiction to be
19combined with pari-mutuel pools in this Commonwealth. Each
20commission may promulgate rules or regulations to regulate
21wagering on televised simulcasts.

22(c) All moneys wagered by patrons in this Commonwealth on
23these horse races shall be computed in the amount of money
24wagered each racing day for purposes of taxation under section
25222 and all thoroughbred races shall be considered a part of a
26thoroughbred horse race meeting and all harness races shall be
27considered a part of a harness horse race meeting for purposes
28of section 222(b)(5).

29Section 217. Refunds.

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

1from receipts thereof, be refunded, to the party for whose
2account the same were received, on proof satisfactory to the
3commissions that:

4(1) the moneys were in excess of the amount required by
5law;

6(2) the license for which application was made has been
7refused by the commission;

8(3) the moneys were received as a fine and the
9commission has, after review, reduced the amount of the fine;
10or

11(4) upon appeal, the court reduced or remitted the fine
12imposed and paid.

13(b) Refunds shall, upon approval by the commission and after
14approval by the Board of Finance and Revenue, be paid from any
15moneys in the State Racing Fund.

16Section 218. Place and manner of conducting pari-mutuel
17wagering.

18(a) Every licensed corporation shall provide during a horse
19race meeting a place or places within the race track enclosure
20at which the licensed corporation shall conduct the pari-mutuel
21system of wagering by its patrons on the results of horse races
22held at such meetings or televised to the race track enclosure
23by simulcasting. The licensed corporation shall erect a sign or
24board upon which shall be displayed the approximate straight
25odds on each horse in any race; the value of a winning mutuel
26ticket, straight, place or show on the first three horses in the
27race; the elapsed time of the race; the value of a winning daily
28double ticket, if a daily double be conducted, and any other
29information that the commissions may deem necessary for the
30guidance of the general public. The commissions may prescribe,

1by rule, the type and kind of equipment to be used for the
2display of the foregoing information.

3(b) Each commission may upon request by any licensed
4corporation grant permission to the licensed corporation to
5conduct a telephone account wagering system: Provided, however,
6That all telephone messages to place wagers must be to a place
7within the race track enclosure: And further provided, That all
8moneys used to place telephone wagers be on deposit in an amount
9sufficient to cover the wager at the race track where the
10account is opened. Each commission may promulgate rules or
11regulations to regulate telephone account wagering. All moneys
12wagered as a result of telephone account wagering shall be
13included in the amount wagered each racing day for purposes of
14taxation under section 222 and shall be included in the same
15pari-mutuel pools for each posted race. All telephone account
16wagering systems shall be solely operated by the licensed
17corporations.

18(c) A licensed corporation shall only accept and tabulate a
19wager by a direct telephone call from the holder of a telephone
20wagering account. No person shall directly or indirectly act as
21an intermediary, transmitter or agent in the placing of wagers
22for a holder of a telephone wagering account. No person shall in
23any manner place any wager by telephone to a facility in the
24race track enclosure on behalf of a holder of a telephone
25wagering account. Only the holder of a telephone wagering
26account shall place a telephone wager. Any person violating this
27subsection shall be guilty of a misdemeanor of the first degree.

28(d) A licensed corporation shall not accept a telephone
29wager from, nor establish a telephone betting account for, any
30person located in or residing in an area defined herein as the

1primary market area of a race track, other than the race track
2at which the licensed corporation is conducting a racing meet.
3Nothing herein shall prohibit the licensed corporation from
4accepting a telephone wager from, or establishing a telephone
5betting account for, any person located in or residing in the
6primary market area of the track at which the licensed
7corporation is conducting a meet and, if two tracks share
8primary market area as defined herein, both tracks shall have
9equal rights to the market in the shared area.

10(e) The primary market area of a race track, for purposes of
11this act, is defined as that land area included in a circle
12drawn with the race track as the center and a radius of 35 air
13miles.

14(f) The secondary market area of a racetrack, for purposes
15of this act, is defined as that land area included in a circle
16drawn with the racetrack as the center and a radius of 50 air
17miles, but not including the primary market area of the
18racetrack.

19(g) Notwithstanding any other provisions of this act to the
20contrary, upon approval by the appropriate commission, a
21licensed corporation may establish one or more nonprimary
22locations at which it shall conduct pari-mutuel wagering on all
23horse races conducted by such licensed corporation and may
24conduct pari-mutuel wagering on horse races conducted by another
25licensed corporation, which horse races may be televised to the
26locations, or on horse races simulcast to the locations pursuant
27to section 216, provided that:

28(1) No licensed corporation may establish nonprimary
29locations within the primary market area, as set forth in
30subsection (e), of any racetrack other than a racetrack at

1which the licensed corporation conducts race meetings.
2Establishment of a nonprimary location by a licensed
3corporation within the primary market area of a racetrack at
4which the licensed corporation conducts race meetings shall
5require approval of the commission regulating the activities
6of such licensed corporation.

7(2) Any licensed corporation may establish a nonprimary
8location within the secondary market area of a racetrack as
9set forth in subsection (f), provided that the nonprimary
10location is approved by both the State Harness Racing
11Commission and the State Horse Racing Commission.

12(3) Any licensed corporation may establish a nonprimary
13location in areas outside the primary and secondary market
14areas of any racetrack, provided that the location is
15approved by the commission which regulates the activities of
16the licensed corporation establishing the location.

17(4) Where a site is approved by the commission as a
18nonprimary location established by more than one licensed
19corporation, by agreement between the licensed corporations
20and with the approval of the appropriate commission, one
21licensed corporation may operate the pari-mutuel equipment
22for one or more of the licensed corporations at that
23location, but the location may still be considered a part of
24the racetrack enclosure of each of the licensed corporations
25approved to conduct pari-mutuel wagering at that location.

26(5) (i) Any licensed corporation, planning to establish
27a nonprimary location, shall submit to the appropriate
28commission a nonprimary location statement in a form
29prescribed by the appropriate commission which specifies,
30but is not limited to, the following:

1(A) The number of permanent and part-time jobs
2to be created at the proposed facility.

3(B) The population of the town or municipality,
4and surrounding area, where the proposed facility is
5to be located.

6(C) The proximity of the proposed facility to
7any other nonprimary location or licensed racetrack.

8(D) The type of seating to be provided,
9including areas in the proposed facility where
10patrons can handicap races.

11(E) The total seating capacity of the proposed
12facility.

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

14(G) The availability of food and beverages,
15including the number of tables, chairs, kitchen
16facilities and concession stands.

17(H) The number of available parking spaces.

18(I) A description of the general demeanor of the
19facility, including lighting, decor and plans for the
20exterior of the facility.

21(J) The number of betting windows and stand-
22alone terminals to be provided.

23(K) A description of the heating and air
24conditioning units, the smoke removal equipment and
25other climate control devices.

26(L) The total square feet of the proposed
27facility.

28(ii) The General Assembly recognizes the economic
29importance of the horse racing industry in this
30Commonwealth; and further recognizes that the

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

25(iii) In determining whether the nonprimary location
26statement meets the legislative intent of this amendatory
27act, the appropriate commission shall consider factors
28which include, but are not limited to, the following:

29(A) The purposes and provisions of this
30amendatory act.

1(B) The public interest.

2(C) The integrity of live racing.

3(D) The impact on the local community.

4(E) The potential for job creation.

5(F) The quality of the physical facilities and
6all services to be provided therein.

7(iv) In considering whether the appropriate
8commission will grant, suspend or revoke approval of
9nonprimary locations, the provisions of section 209(f)(2)
10shall apply. In connection therewith, the commission
11shall annually conduct inspections of the primary
12facility.

13(v) The rights, duties and obligations of the
14appropriate commission, as set forth in this amendatory
15act, shall apply to nonprimary locations and any
16employees or vendors of the licensed corporation
17establishing the nonprimary location.

18(6) (i) In addition to the requirements of paragraph
19(10), any licensed corporation which is authorized to
20conduct racing at any primary racetrack location at which
21there has not been, in the previous calendar year, a
22minimum of 142 days of live racing shall not be eligible
23to establish nonprimary locations outside its primary
24market area and shall only be eligible to establish
25nonprimary locations within its primary market area
26according to the following schedule.

27Year 28  29  30  20130SB1188PN1884 -46-     1  2  3  4

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

51988	50	365
61989	69	365	Under 69	307
71990	88	365	Under 88	259
81991	107	365	Under 107	191
91992	126	365	Under 126	133
101993	142	365	Under 142	75

11(ii) Notwithstanding the chart contained in
12subparagraph (i), if any such licensed corporation
13schedules 69 or more racing days in calendar year 1989,
14it may, upon approval of the appropriate commission,
15establish nonprimary locations within its primary market
16area for that calendar year.

17(7) (i) The licensed corporation authorized to hold
18race meetings at a primary racetrack location at which
19more than one license is so authorized may be granted up
20to two nonprimary locations by the appropriate
21commission, up to a maximum of four per primary racetrack
22location. The licensed corporation authorized to hold
23race meetings at a primary racetrack location at which
24there is only one such licensed corporation so authorized
25may be granted up to three nonprimary locations.

26(ii) In addition to the nonprimary locations
27authorized by subparagraph (i), during each of the
28calendar years 1989 and 1990, the appropriate commission
29may approve no more than one additional nonprimary
30location per primary racetrack location, for one licensed

1corporation authorized to conduct racing at the primary
2racetrack location.

3(iii) The General Assembly may, at any time, stop
4the further approval of any nonprimary locations. The
5State Harness Racing Commission and the State Horse
6Racing Commission shall not have the authority to approve
7any greater number of nonprimary locations after December
831, 1990, unless further authorized by the General
9Assembly.

10(iv) It shall be the duty of both the State Harness
11Racing Commission and the State Horse Racing Commission
12to annually report to the General Assembly on the effect
13of nonprimary locations on such factors as the local
14economy, the public interest and the integrity of live
15racing, and make suggestions and recommendations.

16(8) (i) Moneys wagered at all primary and nonprimary
17locations pursuant to this act shall be included in
18common pari-mutuel pools. All money wagered by patrons on
19these races shall be computed in the amount of money
20wagered each racing day for purposes of taxation under
21section 222. The licensed corporation conducting the race
22meeting and maintaining the pari-mutuel pools shall
23maintain accurate records of the amount wagered in each
24pool from every primary and nonprimary location.

25(ii) The retained moneys as provided for in section
26222(e) shall be calculated for each location where pari-
27mutuel wagering is being conducted. If wagering has taken
28place at a nonprimary location where the wagering is
29conducted by a licensed corporation other than the
30licensed corporation conducting the race meeting, the

1licensed corporation conducting the race meeting shall
2retain any moneys to which it is entitled by agreement
3between such licensed corporations and shall pay over the
4balance of the retained moneys to the licensed
5corporation conducting the wagering at the nonprimary
6location.

7(9) (i) A licensed corporation conducting a race
8meeting on which pari-mutuel wagering is conducted at one
9or more nonprimary locations shall distribute to the
10horseman's organization representing a majority of owners
11and trainers at its racetrack, or in accordance with the
12practice of the parties, to be used for payment of purses
13at that racetrack, an amount equal to not less than 6% of
14the daily gross wagering handle on such races at a
15nonprimary location: Provided, however, That when the
16gross wagering handle on such races at any such
17nonprimary location on a given day is less than $30,000,
18the above-referenced percentage shall be not less than
193%, and when the gross wagering handle on such races at
20any such nonprimary location on a given day is between
21$30,000 and $75,000 inclusive, the above-referenced
22percentage shall be not less than 4.75%: And provided
23further, That whenever a nonprimary location is within
24the primary market area of a licensed corporation other
25than the licensed corporation conducting such races, the
26applicable percentage shall be distributed one-half to
27the horseman's organization representing a majority of
28owners and trainers at the racetrack, or in accordance
29with the practice of the parties, where the race meeting
30is being conducted to be used for the payment of purses

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

12(ii) Notwithstanding subparagraph (i), or any other
13provision in this act to the contrary, a nonprimary
14location may be established within the primary market
15area of a racetrack by agreement between the licensed
16corporation and the horseman's organization representing
17a majority of the owners and trainers at that racetrack
18specifying the total percentage of handle wagered at such
19nonprimary location to be distributed to that horseman's
20organization, or in accordance with the practice of the
21parties, to be used for the payment of purses at that
22racetrack. If no such agreement is reached covering such
23locations, the total percentage to be paid for purses
24pursuant to this subparagraph shall be the same as that
25applied to on-track wagering at the racetrack located
26within the primary market area.

27(10) The provisions of section 234 relating to the
28required number of racing days apply to this subsection.
29However, a horseman's organization representing a majority of
30owners and trainers at a racetrack may consent to waiving or

1modifying the provisions as pertaining to the required number
2of racing days scheduled by a licensed corporation at that
3racetrack.

4Section 219. Books and records of pari-mutuel wagering.

5Every corporation that conducts a horse race meeting at which
6pari-mutuel wagering is authorized, shall keep books and records
7so as to clearly show by separate record the total amount of
8money contributed to every pari-mutuel pool. The Department of
9Revenue or its authorized representative shall have access to
10all books and records for the purpose of examining the same and
11ascertaining whether the proper amount due to the State is being
12paid by the licensed corporation.

13Section 220. Filing of certain agreements with the commissions.

14Every corporation licensed to conduct horse race meetings at
15which pari-mutuel wagering is permitted shall promptly after
16entering any lease agreement concerning any concession, labor
17management relation, hiring of designated classes of officers,
18employees or contractors specified by the commissions or any
19such other contract or agreement as the commissions may
20prescribe, file with the appropriate commission a true and
21correct copy, or an accurate summary, if oral.

22Section 221. Retention percentages for pari-mutuel pools.

23(a) Every licensed corporation shall distribute the moneys
24in any pari-mutuel pool to the holders of winning tickets under
25the following requirements:

26(1) all tickets shall be presented for payment before
27the first day of April of the year following the year of
28their purchase; and

29(2) seventeen percent of the moneys plus the breakage
30from regular wagering pools shall be retained by the licensed

1corporations for further distribution under section 222; or

2(3) nineteen percent of the moneys plus the breakage
3from regular wagering pools from licensed corporations whose
4total deposits in all pari-mutuel pools averaged less than
5$300,000 per racing day for their previous meeting at the
6same facility; or

7(4) twenty percent of the moneys plus the breakage from
8the exacta, daily double, quinella and other wagering pools
9involving two horses each racing day shall be retained by the
10licensed corporations for further distribution under section
11222; or

12(5) at least 26% but no more than 35% of the moneys plus
13the breakage from the trifecta or other wagering pools
14involving more than two horses in one or more races each
15racing day shall be retained by the licensed corporations for
16further distribution under section 222; and

17(6) except as provided for in subsection (d.1) of
18section 222, every corporation may retain less than 17%, 19%
19or 20% of the moneys in the wagering pools under paragraphs
20(2), (3) and (4) or less than 26% of the moneys in the
21wagering pools under paragraph (5) upon approval from the
22appropriate commission; and

23(7) every corporation may retain more than 25% but no
24more than 35% of the moneys in the wagering pools under
25paragraph (5) upon approval from the appropriate commission;
26and

27(8) all moneys remaining in the wagering pools described
28under paragraphs (2), (3), (4), (5), (6) and (7) shall be
29distributed to the holders of winning tickets.

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

1be made on all contributions to pari-mutuel pools exceeding a
2sum equal to the next lowest multiple of ten.

3(c) The commissions shall establish by rule or regulation
4provisions for minus-pools relating to the retention
5requirements under this section.

6Section 222. Distribution of moneys retained from pari-mutuel
7pools; taxation.

8(a) There is hereby created the State Racing Fund. All
9licensed corporations that conduct harness race meetings shall
10pay a tax through the Department of Revenue for credit to the
11State Racing Fund. All licensed corporations that conduct
12thoroughbred horse race meetings shall pay a tax through the
13Department of Revenue for credit to the State Racing Fund. The
14tax imposed on all licensed corporations shall be a percentage
15tax on the amount wagered each racing day and be paid from the
16moneys retained under section 221.

17(a.1) At the close of each day of racing, all corporations
18licensed to conduct harness horse race meetings or thoroughbred
19horse race meetings which annually conduct at least 100 days of
20racing, or when two licensed corporations conduct their race
21meetings at the same facility and between them annually conduct
22at least 175 days of racing, will pay out of the moneys retained
23on that day under section 221, through the Department of Revenue
24for credit to the State Horse Racing Fund the following taxes
25for the time periods stated:

26(1) From January 1, 1984 through June 30, 1984 - 3.8%.

27(2) From July 1, 1984 through June 30, 1986 - 2.0%.

28(3) After June 30, 1986 - 1.5%, except as provided in
29subsection (a.4).

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

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

7(a.3) For purposes of this section, a racing day shall be
8considered conducted after the appropriate commission has
9certified the allocation of racing days to the Secretary of the
10Department of Revenue under the provisions of section 207(b)
11even if the racing day is subsequently cancelled by the licensed
12corporation for reasons beyond its control.

13(a.4) Any corporation which does not hold a license under
14section 209 on the effective date of this act and which is
15granted a license under this act shall be subject to payment out
16of moneys retained under section 221, through the Department of
17Revenue for credit to the State Horse Racing Fund, of the
18following tax for a period of four years from the issuance date
19of the license - 1.0%, at which time said licensee shall be
20subject to the lawful rate then in effect under subsection (a.1)
21(3).

22(a.5) In order to qualify for the 1.0% tax rate authorized
23under subsection (a.4), the newly licensed corporation may not
24include any officer, director or the immediate relative (spouse,
25children or parents) of any officer or director of any licensed
26racing corporation which conducted, at any time within the
27immediately preceding five years, any horse or harness race
28meetings at the racetrack enclosure for which the license is
29sought. Also, the newly licensed corporation may not include any
30shareholder (or their immediate relative) holding a 5% or

1greater interest who also held a 5% or greater interest in any
2corporation licensed at any time within the immediately
3preceding five years to conduct horse or harness race meetings
4at the racetrack enclosure for which the license is sought.

5(b) The commissions shall distribute moneys from the State
6Racing Fund, together with the interest earned thereon, in the
7following manner:

8(1) The salaries of employees of the commission employed
9by or for it under the provisions of this act and the act of
10April 9, 1929 (P.L.177, No.175), known as "The Administrative
11Code of 1929," net of any income earned or received by the
12commission.

13(2) The payment of the compensation of employees of the
14Department of Revenue when used in collecting taxes and
15penalties imposed by this act.

16(3) The expenses of the Secretary and the Department of
17Agriculture incurred in administering their duties under this
18act.

19(4) To pay all other expenses incurred by the commission
20in administering this act, net of any income earned or
21received by the commission.

22(5) From remaining moneys in the State Racing Fund:

23(i) An amount equivalent to one percent of the
24amount wagered each racing day at thoroughbred horse race
25meetings shall be paid by the Horse Racing Commission
26from the State Racing Fund through the Department of
27Revenue for credit to the Pennsylvania Breeding Fund.

28(ii) An amount equivalent to one and one-half
29percent of the amount wagered each racing day at harness
30horse race meetings shall be paid by the Harness Racing

1Commission from the State Racing Fund through the
2Department of Revenue for credit to the Pennsylvania Sire
3Stakes Fund, beginning on July 1, 1983.

4(6) All remaining moneys in the State Racing Fund shall
5be paid into the General Fund.

6(c) All breakage retained under section 221 by licensed
7corporations that conduct thoroughbred horse race meetings shall
8be distributed in the following manner:

9(1) Fifty percent of the breakage shall be retained by
10the licensed corporations.

11(2) Twenty-five percent of the breakage shall be
12retained by the licensed corporations to be used solely for
13purses to the horsemen.

14(3) Twenty-five percent of the breakage shall be paid to
15the Department of Revenue for credit to the State Horse
16Racing Fund.

17(d) All breakage retained under section 221 by licensed
18corporations that conduct harness horse race meetings shall be
19distributed in the following manner:

20(1) Fifty percent of the breakage shall be retained by
21the licensed corporations.

22(2) The remaining 50% of the breakage shall be retained
23by the licensed corporations of which one-half of this
24breakage shall be used solely by the licensed corporations
25for claiming and nonclaiming races where entry is restricted
26to Pennsylvania-sired horses in the following manner:

27(i) On January 1, 1982, and thereafter at least five
28of the horses programmed to start shall be Pennsylvania-
29sired horses. If at least five of the horses programmed
30to start are not Pennsylvania-sired horses, then the

1licensed corporation conducting the meet shall cancel the
2race.

3(ii) On January 1, 1983, and thereafter at least
4seven of the horses programmed to start shall be
5Pennsylvania-sired horses. If at least seven of the
6horses programmed to start are not Pennsylvania-sired
7horses, then the licensed corporation conducting the meet
8shall cancel the race.

9(iii) On January 1, 1984, and thereafter, only
10Pennsylvania-sired horses shall be allowed to start in
11these races. If all the positions are not filled by
12Pennsylvania-sired horses in these races, then the
13licensed corporation conducting the meet shall cancel the
14race.

15All breakage moneys due licensed corporations for the purses for
16claiming and nonclaiming races under this paragraph but not
17expended as a result of a race cancellation shall be carried
18forward to the next succeeding meet by the licensed corporations
19to be used for claiming and nonclaiming races which restrict
20entry to Pennsylvania-sired horses under the provisions of this
21paragraph.

22(d.1) An amount equivalent to one percent of the amount
23wagered at each racing day at thoroughbred and harness horse
24race meetings as set forth in section 221(a)(4) and (5) shall be
25paid through the Department of Revenue for credit to the State
26Racing Fund.

27(e) All remaining moneys retained under section 221 and not
28heretofore distributed shall be kept by the licensed
29corporations for their use.

30Section 223. Pennsylvania Breeding Fund.

1(a) There is hereby created a restricted account in the
2State Racing Fund to be known as the Pennsylvania Breeding Fund
3which shall consist of the money appropriated under the
4provisions of section 222 and which shall be administered by the
5State Horse Racing Commission.

6(b) After the deduction of expenses related to the
7administration and development of the Pennsylvania Breeding Fund
8program incurred by the Pennsylvania Horse Breeders'
9Association, the State Horse Racing Commission shall, by rule or
10regulation, provide for awards as follows:

11(1) An award of 30% of the purse earned by every
12registered Pennsylvania-bred thoroughbred horse sired by a
13registered Pennsylvania sire at the time of conception of the
14registered Pennsylvania-bred thoroughbred horse, or an award
15of 20% of the purse earned by every registered Pennsylvania-
16bred thoroughbred horse sired by a nonregistered sire, which
17finishes first, second or third in any race conducted by a
18licensed corporation under this act shall be paid to the
19breeder of said registered Pennsylvania-bred thoroughbred
20horse. A single award under this paragraph may not exceed 1%
21of the total annual fund money.

22(2) An award of 10% of the purse earned by any
23Pennsylvania-bred thoroughbred horse which finishes first,
24second or third in any race conducted by a licensed
25corporation under this act shall be paid to the owner of the
26registered Pennsylvania sire which regularly stood in
27Pennsylvania at the time of conception of said Pennsylvania-
28bred thoroughbred horse. A single award under this paragraph
29may not exceed .5% of the total annual fund money.

30(3) An award of 10% of the purse earned by any

1registered Pennsylvania-bred thoroughbred horse which
2finishes first in any race conducted by a licensed
3corporation under this act not restricting entry to
4registered Pennsylvania-bred thoroughbred horses shall be
5paid to the licensed owner of said registered Pennsylvania-
6bred thoroughbred horse at the time of winning. A single
7award under this paragraph may not exceed .5% of the total
8annual fund money.

9(c) Up to one-fifth of the total of the estimated fund
10moneys remaining each year after the deduction of expenses
11related to the administration and development of the
12Pennsylvania Breeding Fund program and the payment of breeder,
13stallion and owner awards, shall be divided among the licensed
14corporations that conduct thoroughbred horse race meetings in
15direct proportion to the rate by which each licensed corporation
16generated the fund moneys during the previous year to be used
17solely for purses for Pennsylvania Breeding Fund stakes races
18which restrict entry to registered Pennsylvania-bred
19thoroughbred horses.

20(d) The fund moneys remaining following disbursements as
21directed in subsection (b)(1), (2) and (3) and subsection (c)
22shall be divided among the licensed corporations that conduct
23thoroughbred horse race meetings in direct proportion to the
24rate by which each licensed corporation generated the fund
25moneys during the previous year to be used for purses as
26follows:

27(1) Claiming and nonclaiming Pennsylvania Breeding Fund
28races which restrict entry to registered Pennsylvania-bred
29thoroughbred horses.

30(2) Claiming and nonclaiming Pennsylvania Breeding Fund

1races which prefer registered Pennsylvania-bred thoroughbred
2horses as starters. In these races, should eight or more
3registered Pennsylvania-bred horses pass the entry box, the
4race shall be considered closed to horses other than
5registered Pennsylvania-bred thoroughbred horses.

6(e) Those Pennsylvania Breeding Fund moneys due licensed
7corporations as outlined in subsections (c) and (d) but not
8expended during the calendar year may be carried forth in the
9fund on the account of said licensed corporations to be expended
10during the succeeding year in addition to said corporations'
11fund moneys annually due them for purses.

12(f) The Pennsylvania Breeding Fund Advisory Committee, under
13the jurisdiction of the State Horse Racing Commission, is hereby
14established and shall be part of the Pennsylvania State Horse
15Racing Commission. The commission shall consist of five members,
16all of whom shall be residents of Pennsylvania, to be appointed
17by the commission by June 1 of each year. The committee shall
18consist of two members of the Pennsylvania Horse Breeders'
19Association, one member from the licensed corporations, one
20member from the association representing horsemen racing in
21Pennsylvania and one member of the commission. If any member
22other than the commission member has not been recommended by
23June 1 of each year, the commission shall make an appointment
24for the organization failing to so recommend a member of the
25committee. The committee shall assist and advise the commission
26under the provisions of this act but shall have no power in
27administering the fund. The members of the committee shall
28receive no compensation for their services as members.

29(g) The State Horse Racing Commission may contract with the
30Pennsylvania Horse Breeders' Association as the sole responsible

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

16Section 224. Pennsylvania Sire Stakes Fund.

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

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

1corporations that conduct harness horse race meetings to be used
2in the next succeeding calendar year following the next
3succeeding calendar year as purse money for Pennsylvania-sired
4horses. After deduction of sufficient funds to cover the State
5Harness Racing Commission's cost of administration, 80%, unless
6a smaller percentage is necessary in order to comply with the
7minimum dollar requirement of subsection (e), of all remaining
8moneys in the Pennsylvania Sire Stakes Fund at the end of the
9calendar year shall be distributed to licensed corporations that
10conduct harness horse race meetings to be used as purse money
11for Pennsylvania-sired horses. The State Harness Racing
12Commission may then allocate up to a total of and not exceeding
1340% of the total amount to be distributed to licensed
14corporations in a calendar year for use for a series of
15championship final races at the race tracks of licensed
16corporations that conduct harness horse race meetings. The State
17Harness Racing Commission shall allocate the moneys to these
18championship final races in an equal amount for each sex, age
19and gait for two- and three-year-old trotters and pacers. The
20State Harness Racing Commission shall determine conditions
21establishing eligibility to these final events. No pari-mutuel
22harness track shall be awarded more than 50% of the championship
23final races in any calendar year. The State Harness Racing
24Commission shall schedule these final events so as to evenly
25alternate classes at each race track each year. After the
26allocation for the championship final races has been determined,
27the remaining funds to be distributed to licensed corporations
28that conduct harness horse race meetings shall be divided
29equally among the licensed corporations. Each licensed
30corporation shall divide the funds received equally for each of:

1(1) four two-year-old races; one pace for colts, one
2pace for fillies, one trot for colts and one trot for
3fillies; and

4(2) four three-year-old races; one pace for colts, one
5pace for fillies, one trot for colts and one trot for
6fillies.

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

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

16(e) The remaining moneys in the Pennsylvania Sire Stakes
17Fund up to a total of and not exceeding $25,000 for each
18agricultural fair and one- or two-day events as defined in
19harness racing commission regulations shall be divided equally
20among those agricultural fairs and one- or two-day events, not
21to exceed more than five one- or two-day events per year and as
22authorized by the State Harness Racing Commission, provided that
23no more than two one-day or two-day events per county are
24authorized unless, after a date established by the commission,
25all five of the events have not been allocated, conducting
26harness horse races for two-year-old and three-year-old harness
27horses: Provided, however, That in no event shall less than
28$225,000 be allocated from the Pennsylvania Sire Stakes Fund and
29be divided equally among those agricultural fairs and one- or
30two-day events conducting these races. Each fair or one- or two-

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

11(f) The fund moneys remaining following disbursements as
12directed in subsections (b), (c), (d) and (e) shall, except as
13provided in subsection (b), be divided among active licensed
14corporations that conduct harness horse race meetings under this
15act in direct proportion to the rate by which each licensed
16corporation generated the fund moneys during the previous year.
17The fund moneys so divided shall be used for purses as follows:

18(1) A minimum of four races, claiming and nonclaiming,
19shall be carded per week on the condition sheet for overnight
20claiming and nonclaiming Pennsylvania Fund races which
21restrict entry to registered Pennsylvania-sired or wholly
22Pennsylvania-owned harness horses.

23(2) Claiming and nonclaiming Pennsylvania Fund races
24which prefer registered Pennsylvania-sired harness horses as
25starters. In these races, should seven or more registered
26Pennsylvania-sired harness horses pass the entry box, the
27race shall be considered closed to horses other than
28registered Pennsylvania-sired harness horses.

29Section 225.1. Fair Fund proceeds.

30The Secretary of Agriculture shall distribute certain moneys

1in the Fair Fund annually, on or before March 1, for
2reimbursement for each county agricultural society and each
3independent agricultural society conducting harness horse racing
4during its annual fair other than races for two- and three-year
5old colts and fillies, an amount of money equal to that used
6during their annual fair as purse money for harness horse
7racing, track and stable maintenance, starting gate rental and
8the cost of all harness horse racing officials required during
9their annual fair, but not more than $13,000, a minimum of
10$4,000 of which must be used for purse money and the balance of
11said allotment per fair, not used for purse money over the
12minimum $4,000 allotment, shall be used for said specific
13purposes herein before referenced, or otherwise said allotment
14shall be retained in the fund. The State Harness Racing
15Commission shall cause to be carried out as its responsibility a
16yearly inspection of each track facility and shall advise each
17operating fair of necessary track maintenance which is necessary
18to insure adequate racing surface during the course of scheduled
19fairs and racing events. If it is the opinion of the commission
20that the fair society or event sponsor is not adequately
21financing track maintenance through its permissible
22reimbursement under this paragraph, the commission shall so
23surcharge the Fair Fund account of said fair society or event
24sponsor to effectuate said remediation.

25Section 226. Hearing of refusal or revocation of license.

26If the commissions refuse to grant any license applied for
27under this act, or shall revoke or suspend any license granted,
28the applicant or licensee may demand, within ten days after
29notice of the decision of the appropriate commission, a hearing
30before the appropriate commission. The commission shall give

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

24Section 227. Approval of the racing facility.

25The commissions shall not grant to a corporation formed under
26this act a license to conduct a horse race meeting at which
27pari-mutuel betting may be conducted, until the corporation has
28submitted to the appropriate commission a statement of the
29location of its proposed grounds and race track, together with a
30plan of the track and plans of all buildings, seating stands and

1other structures in a form as the appropriate commission may
2prescribe. All plans shall be approved by the appropriate
3commission before the issuance of any license to conduct a pari-
4mutuel horse race meeting.

5Section 228. Prohibition of wagering by certain officials,
6employees and minors.

7No commissioner, executive secretary, deputy, officer,
8representative, employee or counsel of the commission shall
9wager upon the outcome of any horse race conducted at a track at
10which pari-mutuel wagering is conducted by any licensed
11corporation of the commissions. No licensed corporation shall
12permit any person who is actually and apparently under 18 years
13of age to wager at a race meeting conducted by it. No licensed
14corporation shall permit any person who is under 18 years of age
15to attend a horse race meeting conducted by it unless the person
16is accompanied by a parent or guardian. This section shall not
17be construed to prohibit persons under 18 years of age, who are
18legally employed, from being upon the race track premises for
19the sole purpose of engaging in the performance of their duties
20as employees. The commissions shall, by rule, provide for
21enforcement of this section.

22Section 229. State horse racing veterinarians and State
23stewards.

24(a) The State Horse Racing Commission shall appoint and
25employ licensed veterinarians and stewards to serve as the horse
26racing veterinarians and State stewards for horse racing,
27respectively, at each meeting conducted by a corporation
28licensed by the State Horse Racing Commission. The State Horse
29Racing Commission shall have the authority to employ other
30individuals as shall be necessary to carry out the

1responsibilities of this section.

2(b) The costs and compensation of the horse racing
3veterinarians, State stewards and other individuals employed
4shall be fixed and paid by the State Horse Racing Commission.

5(c) The State Horse Racing Commission shall establish a job
6description and professional criteria for stewards to assure
7that they have a working knowledge of the horse racing industry.

8Section 230. State harness racing veterinarians.

9(a) The State Harness Racing Commission shall appoint and
10employ licensed veterinarians to serve as the harness racing
11veterinarians for harness racing at each meeting conducted by a
12corporation licensed by the State Harness Racing Commission. The
13State Harness Racing Commission shall have the authority to
14employ other individuals as shall be necessary to carry out the
15responsibilities under this section.

16(b) The costs and compensation of the harness racing
17veterinarians and other individuals employed to carry out the
18provisions of this act shall be fixed and paid by the State
19Harness Racing Commission.

20Section 231. Free passes, cards or badges.

21(a) A licensed corporation shall not issue free passes,
22cards or badges without admission tax, except to persons
23hereafter described: officers, employees and shareholders of the
24corporation conducting the race meeting; members, officers and
25employees of the commissions; members of horse racing
26associations of other states and foreign countries; public
27officers engaged in the performance of their duties; persons
28employed and accredited by the press to attend such meeting;
29owners, stable managers, trainers, jockeys, concessionaries and
30other persons whose actual duties require their presence at the

1race tracks.

2(b) The commissions may allow a licensed corporation to
3issue free passes, cards or badges for special promotional
4programs and seasonal discount ticket programs, so long as the
5corporation has obtained approval from the appropriate
6commission. The admissions taxes under section 208 shall be
7imposed on the price of all seasonal discount tickets sold by a
8licensed corporation.

9(c) The issuance of tax-free passes, cards or badges shall
10be under the rules and regulations of the commissions. A list of
11all persons, except persons admitted under an approved special
12promotional program or seasonal discount ticket program, to whom
13free passes, cards or badges are issued shall be filed with the
14appropriate commission.

15Section 232. Political subdivision agricultural fairs and horse
16race meetings not licensed to conduct pari-mutuel
17wagering.

18Pari-mutuel wagering on horse races at any county or other
19political subdivision, agricultural or other fair shall not be
20authorized. No lottery, pool selling, bookmaking or any other
21kind of gambling upon the results of races, heats or contests of
22speed of horses shall be allowed at any fair or at any horse
23race meeting conducted in the State, except those licensed to
24operate pari-mutuel wagering under the provisions of this act.

25Section 233. Monitoring of wagering on video screens.

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

1No display of approximate odds or approximate will-pays shall be
2required where the wager is on horses in four or more races,
3such as "Pick 4, Pick 5 or Pick 6." In addition to displaying
4the amount of money wagered, the approximate odds or approximate
5will-pays on each horse or combination of horses shall be shown
6on video screens in each wagering division. For trifectas, in
7lieu of odds or approximate will-pays, the amount of money being
8wagered on each horse to win in the trifecta pool shall be
9displayed on video screens separately from any other
10information. The above required information shall be displayed
11from the opening of bets or wagering and be continually
12displayed until the wagering is closed. At least one video
13screen in each wagering division shall display the amount of
14money wagered on each horse involved in any trifecta pool.

15Section 234. Simulcasting.

16The State Horse Racing Commission and the State Harness
17Racing Commission shall only permit intrastate simulcasting of
18live racing between two licensed corporations when each
19continues to schedule 95% of the total number of horse or
20harness racing days scheduled in 1986 at the facility where each
21said licensed corporation conducts its horse or harness racing
22dates, and when the average number of live horse or harness
23races per race day equals 90% of the average number of live
24horse or harness races conducted per day in 1985 at the facility
25where each said licensed corporation conducts its horse or
26harness racing dates, subject to any actions or activities
27beyond the control of the licensee: Provided, however, That for
28any licensed corporation that was granted a permanent license
29for horse racing and operating at a facility where the average
30daily handle at the facility at which the licensed corporation

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

1simulcasting, regardless of location or distance from another
2licensed racing corporation, there shall exist a written
3agreement with the horseman's organization representing a
4majority of the owners and trainers at both the sending and
5receiving racetracks. If no agreement can be reached, then the
6licensed corporation may petition the court of common pleas in
7the 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 commission may then authorize the simulcasting,
13if, in the opinion of the appropriate commission, such
14simulcasting will have significant value to the Pennsylvania
15racing industry. The simulcast signal shall be encoded, and the
16racetrack receiving the simulcast signal shall not send this
17signal anywhere other than public locations authorized under
18section 218 or 218-A. All forms of pari-mutuel wagering
19described in section 221 shall be allowed on races to be
20televised by simulcasting under this section. The State Horse
21Racing Commission and the State Harness Racing Commission may
22promulgate regulations on wagering and the operation of these
23races. All money wagered by patrons on these races shall be
24computed in the amount of money wagered each racing day for
25purposes of taxation under section 222. In the event the
26simulcast is between a thoroughbred racetrack and a harness
27racetrack, both commissions shall have jurisdiction, and any
28approval required hereunder must be received from both
29commissions: Provided, however, That if no agreement can be
30reached between the horseman's organization aforementioned, then

1the licensed corporation may petition the court of common pleas
2in the 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 commissions may then authorize the simulcasting
8if, in the opinions of the respective commission, such
9simulcasting will have a significant value to the Pennsylvania
10racing industry. The provisions of this section with regard to
11the required number of racing days may be waived or modified by
12the applicable commission if the waiver or modification has been
13consented to by the horseman's organization representing a
14majority of the owners and trainers at the racetrack where the
15racing days are to be scheduled or raced.

16Section 235. Commingling.

17(a) This section shall be applicable only to licensed
18thoroughbred racing corporations.

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

27(c) A licensed corporation shall maintain a separate
28account, called a Horsemen's Account. Money owing to owners in
29regard to purses, stakes, rewards, claims and deposits shall be
30deposited into the Horsemen's Account. Funds in the account

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

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

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

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

11(f) The Horsemen's Account shall be audited periodically as
12deemed appropriate by the commission. There shall be at least
13one audit per year. Monthly statements shall be provided to the
14designee of the organization which represents a majority of the
15owners and trainers racing with the licensed corporation.

16(g) Fifty percent of the money earned as interest on funds
17in the Horsemen's Account shall be paid to the organization
18which represents a majority of the owners and trainers racing
19with the licensed corporation on a weekly basis. This amount
20shall be for the benefit of the horsemen as determined by the
21organization which represents the majority of the owners and
22trainers racing with the licensed corporation. The remaining 50%
23of the interest earned shall be for the benefit of the licensed
24corporation which shall have the responsibility to fund all
25costs associated with the administration of the fund. Interest
26each month must be earned in an amount equal to the Federal
27Reserve Discount Rate on the first day of the month.

28Section 236. Harness racing purse moneys.

29Each licensed harness horse racing association must place on
30deposit with the State Harness Racing Commission by March 1 of

1each year an irrevocable letter of credit equivalent to its
2average weekly purse total from the immediate prior year. The
3commission shall hold the letter of credit in trust for the
4harness horsemen racing at that licensed corporation in the
5event that purse checks are not issued or that insufficient
6funds are available to cover the purse checks.

7Section 237. Limitations on day and night racing.

8(a) For the purpose of this section day racing shall be
9racing days for which the starting time for the first race is at
10or before 2:00 p.m., and night racing shall be racing days for
11which the starting time for the first race is after 5:00 p.m.
12Day racing may not be conducted at any racing facility after
131985 on any comparable type racing day or holiday on which day
14racing was not conducted in 1985 unless all presently operating
15licensed corporations conducting day racing agree, in writing,
16to allow such day racing activities.

17(b) Night racing may not be conducted at any racing facility
18after 1985 on any comparable type racing night or holiday on
19which night racing was not conducted in 1985 unless all
20presently operating racing facilities conducting night racing
21agree, in writing, to allow night racing activities.

22(c) Each appropriate commission shall have the authority to
23grant exceptions to this section upon application by a licensed
24racing corporation for not more than five racing days per
25calendar year with respect to each licensed corporation. The
26provisions of this section shall be effective until July 1,
271991.]

28Section 3. The act is amended by adding a chapter to read:

29CHAPTER 2-A

30RACING OVERSIGHT

1Section 201-A. Bureau of Horse Racing.

2(a) Establishment.--The Bureau of Horse Racing is
3established within the board to regulate the operations of horse
4racing and pari-mutuel operations.

5(b) Jurisdiction.--The board shall have jurisdiction and
6regulatory authority over the following:

7(1) Pari-mutuel wagering and other horse racing
8activities in this Commonwealth.

9(2) A licensed <-corporation <-business entity engaged in
10pari-mutuel horse racing activities.

11(3) Out-of-competition drug testing, which shall include
12the random drug testing of all horses entered in a race,
13stabled on the grounds or shipped into a licensed
<-14corporation's <-business entity's facility.

15(4) The conduct of horse racing in this Commonwealth.

16(c) Records.--The board shall maintain at its office the
17following:

18(1) All documents provided to or filed with the board.
19Documents may be designated as confidential in accordance
20with board policy.

21(2) A docket setting forth the names of all stockholders
22in a business entity, licensed under this act. The docket
23shall be available for public inspection during normal
24business hours of the board.

25(3) The number of shares held by each stockholder.

26(4) A complete record of proceedings of the board
27relating to horse racing and pari-mutuel wagering.

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

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

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

7(2) The board shall promulgate rules and regulations
8necessary for the administration and enforcement of this act.
9Except as provided in paragraph (3), regulations shall be
<-10adopted under the act of July 31, 1968 (P.L.769, No.240),
11referred to as the Commonwealth Documents Law, and the act of
12June 25, 1982 (P.L.633, No.181), known as the Regulatory
13Review Act <-promulgated in accordance with law.

14(3) In order to facilitate the prompt implementation of
15this act, regulations promulgated by the board shall be
16deemed temporary regulations which shall not expire for a
17period of three years following publication. Temporary
18regulations shall not be subject to:

19(i) Sections 201, 202, 203, 204 and 205 of the
20Commonwealth Documents Law.

21(ii) The Regulatory Review Act.

22(iii) Sections 204(b) and 301(10) of the act of 
23October 15, 1980 (P.L.950, No.164), known as the 
24Commonwealth Attorneys Act.

25(4) Except for temporary regulations governing
26procedures for collecting and testing for illegal or
27performance enhancing substances and practices in horse
28racing, the board's authority to promulgate temporary
29regulations under paragraph (3) shall expire three years
30after the effective date of this section. Regulations adopted

1after this period shall be promulgated as provided by law.

<-2(e) Application.--The board shall develop a joint
3application for Category 1 licensees and licensed business
4entities.

<-5(e) <-(f) Licenses.--Each license issued prior to January 1,
62014, shall remain in effect for the remainder of the term for
7which the license was issued unless revoked or suspended. After
8a license has expired, a license renewal or new license shall be
9issued under this act. A license renewal shall be subject to and
10made consistent with the requirements of 4 Pa.C.S. § 1326
11(relating to license renewals).

12Section 202-A. Additional powers.

13The board shall regulate horse racing at which pari-mutuel
14wagering is conducted and approve the number of racing days
15allocated <-by <-to each licensed business entity. In addition to
16any other powers of the board:

17(1) The board shall promulgate regulations regarding
18medication rules.

19(2) The board shall require applicants under this act to
20submit to fingerprinting and photographing by the
21Pennsylvania State Police or by a local law enforcement
22agency capable of submitting fingerprints and photographs
23electronically to the Pennsylvania State Police utilizing the
24Integrated Automated Fingerprint Identification System and
25the Commonwealth Photo Imaging Network or in a manner
26provided by the Pennsylvania State Police. The Pennsylvania
27State Police shall submit fingerprints <-when requested by the
28board to the Federal Bureau of Investigation to verify the
29identity of applicants and to obtain criminal records. <-The
30board shall consider information obtained pursuant to this

1provision for the purpose of screening applicants for fitness
2for licensure in accordance with the provisions of this act.
3National criminal history record information received by the
4board shall be handled and maintained in accordance with
5Federal Bureau of Investigation policy. Fingerprints and
6photographs obtained under this paragraph may be maintained
7by the board and the Pennsylvania State Police to enforce
8this act and for general law enforcement purposes. In
9addition to any other fee or cost assessed by the board, an
10applicant shall pay for the cost of fingerprinting and
11photographing. <-The board may exempt certain categories of
12employment from this paragraph.

13(3) Two years following the effective date of this
14section, the board may adopt regulations to annually increase
15any fee, charge or cost authorized under this act. <-The
16increase may not exceed the annual cost-of-living adjustment
17calculated by applying the percentage change in the consumer
18price index for all urban consumers for the Pennsylvania, New
19Jersey, Delaware and Maryland area for the most recent 12-
20month period for which figures have been officially reported
21by the United States Department of Labor, Bureau of Labor
22Statistics, immediately prior to the date the adjustment is
23due to take effect. This paragraph shall not apply to the
24costs of drug testing under section 304.

<-25(4) The board or designated employee of the board shall
26have the power to administer oaths and examine witnesses and
27may issue subpoenas to compel attendance of witnesses and
28production of all relevant and material reports, books,
29papers, documents, correspondence and other evidence.

30Section 202.1-A. Budget.

1The board shall annually submit an itemized proposed budget
2to the Office of the Budget and the chairman of the
3Appropriations Committee of the Senate and the chairman of the
4Appropriations Committee of the House of Representatives
<-5requesting <-consisting of amounts to be appropriated <-from the
6State Racing Fund, the Pennsylvania Race Horse Development Fund
7or the General Fund to administer and enforce this act.

8Section 203-A. License.

9After January 1, 2015, a licensed business entity shall
10conduct a horse racing meeting at the location designated and
11approved by the board under 4 Pa.C.S. §§ 1302 (relating to
12Category 1 slot machine license) and 1303 (relating to
13additional Category 1 slot machine license requirements).

14Section 204-A. (Reserved).

15Section 205-A. Number of horse racing corporations.

16(a) <-Harness <-Standardbred horse racing.--No more than four
17business entities shall be licensed to conduct a pari-mutuel
18meet. No business entity licensed under this act to conduct
<-19harness <-standardbred horse racing with pari-mutuel wagering
20shall be licensed to conduct thoroughbred horse racing with
21pari-mutuel wagering.

22(b) Thoroughbred horse racing.--No more than three business
23entities shall be licensed by the board to conduct a pari-mutuel
24meet. No business entity licensed under this act to conduct
25thoroughbred horse racing with pari-mutuel wagering shall be
26licensed to conduct <-harness <-standardbred horse racing with pari-
27mutuel wagering.

28Section 206-A. Department of Revenue.

29The Department of Revenue shall provide financial
30administration of pari-mutuel wagering under this act in

1accordance with Department of Revenue regulations and
2regulations of the board. The Department of Revenue shall
3prescribe the form and system of accounting to be used by
4licensed business entities, and may access and examine records,
5equipment and other information relating to pari-mutuel
6wagering.

7Section 207-A. Allocation of racing days.

8(a) General rule.--Racing shall be conducted consistent with
94 Pa.C.S. § 1303 (relating to additional category 1 slot machine
10license requirements).

11(b) Certification.--The board shall submit to the Secretary
12of Revenue the approved number of racing days for each licensed
13business entity, including the following information:

14(1) the names and addresses of the licensed business
15entities;

16(2) the names and addresses of the owners, officers and
17general managers of the licensed business entities; and

18(3) any other information the board deems appropriate.

<-19(c) Cancellation.--If a racing day is canceled by a licensed

<-20(c) Cancellation.--

21(1) If a racing day is canceled by a licensed business 
22entity for reasons beyond the licensed business entity's 
23control, the board shall grant the licensed business entity 
24the right to conduct that racing day in the same or the next 
25ensuing calendar year, if schedules permit.

<-26(2) The board may require the cancellation of a race if
27it is determined that less than six horses have entered a
28race.

<-29Section 208-A. Fee for racetrack admissions.

30(a) General rule.--

1(1) Each licensed business entity holding a horse racing
2meeting under this act shall remit to the Department of
3Revenue a fee equal to 20¢ for each individual who attended
4the horse racing meeting. The amount collected shall be
5deposited into the State Racing Fund.

6(2) Nothing under this section shall apply to a horse
7racing meeting conducted by a State, county or agricultural
8association.

9(b) Investigation.--The Department of Revenue may examine
10and audit books and records of the licensed business entity
11conducting a horse racing meeting and may hear testimony and
12accept evidence or other data. The Department of Revenue may
13order an account for the tax due to the Commonwealth together
14with the expense of the examination. A penalty of 5% and
15interest at the rate of 1% per month from the due date to the
16date of payment of the tax shall be payable if tax imposed under
17this section is not paid when due.

<-18Section 208-A. (Reserved).

19Section 209-A. Licenses for horse racing meetings.

20(a) Procedure and terms.--

21(1) After January 1, 2015, a business entity desiring to
22conduct horse racing meetings for which a Category 1 license
23has been issued and at which pari-mutuel wagering is
24permitted may apply to the board for a license or the renewal
25of an existing license.

26(2) A licensed business entity shall have the privilege
27to conduct a horse racing meeting at which pari-mutuel
28wagering is permitted. A license to conduct a horse racing
29meeting shall not be a property right.

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

1licensed business entity if the board finds that the business
2entity, its owners, officers, managers or agents, has not
3complied with this act and regulations promulgated in
4accordance with this act.

5(4) A licensed business entity may not transfer a
6license without the approval of the board.

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

9(1) A horse racing meeting at which pari-mutuel wagering
10is conducted shall be <-supervised <-regulated by the board.

11(2) The conduct of pari-mutuel wagering shall also <-be
12supervised and subject to the Department of Revenue and
13regulations of the department <-be regulated by the Department
14of Revenue.

<-15(3) The business entity posts a bond or irrevocable
16letter of credit payable to the board in an amount equal to
17the sum of the business entity's average weekly payment of
18the pari-mutuel tax, during active racing, into the State
19Racing Fund, based on revenues generated in the previous
20year.

21(4) <-(3) The licensed business entity prints in its
22racing programs the procedure for filing a complaint with the
23board.

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<-.;<- or

16(vi) has furnished the board with false or
17misleading information.

18(2) The experience, character or fitness of any owner,
19officer, director or manager of the licensed business entity
20is such that the participation of the person in horse racing
21or related activities would be inconsistent with the public
22interest or with the best interests of horse racing.

23(3) The licensed business entity does not have use of
24the racetrack or racetrack enclosure in accordance with the
25requirements of 4 Pa.C.S. Pt. II (relating to gaming).

26(4) A licensed business entity has commingled horsemen's
27funds in violation of section 235-A(c) or has refused to
28place on deposit a letter of credit under section 236-A.

29(5) The board determines that the licensed business
30entity has failed to properly maintain its racetrack and

1racetrack enclosure in good condition or to provide adequate
2capital improvements to the racetrack and racetrack enclosure
3as required under this act and 4 Pa.C.S. § 1404 (relating to
4distributions from licensee's revenue receipts).

5(e) Conditional licenses.--Pending a final determination
6under this section, the board may issue a conditional license
7upon such terms and conditions as are necessary to effectuate
8the provisions of this act.

9Section 210-A. (Reserved).

10Section 211-A. Financial and employment interests.

11(a) General rule.--A business entity applying for a license
12or a licensed business entity shall comply with the provisions
13of 4 Pa.C.S. §§ 1512 (relating to financial and employment 
14interests), 1512.1 (relating to additional restrictions) and 
151513 (relating to political influence).

16(b) Gifts.--No owner, officer, manager or employee of an
17applicant or licensed business entity or their spouses, parents,
18fathers-in-law, mothers-in-law, siblings, children, sons-in-law
19or daughters-in-law shall accept gifts from breeders, owners,
20trainers or other individuals who participate in the conduct of
21horse racing in this Commonwealth.

22Section 212-A. Officials at horse racing meetings.

23All qualified judges and starters shall be approved by the
24board. For <-harness <-standardbred horse racing meetings, no person
25shall be approved as a judge or starter unless the person is
26licensed by the United States Trotting Association as a duly
27qualified pari-mutuel racing meeting official. All officials
28shall enforce the law and shall provide written reports of the
29activities and conduct of horse racing meetings to the board.
30The compensation of these <-judges and starters shall be assessed

1to the licensed business entity <-officials shall be paid by the
2board.

3Section 213-A. Licenses for individuals.

4(a) General rule.--The board shall <-issue licenses to <-develop
5a licensing classification system for the regulation of vendors,
6trainers, jockeys, drivers<-, horsemen's organizations, horse
7owners and other individuals participating in horse racing and
8all other persons required to be licensed as determined by the
9board. The license shall not be a property right.

10(b) Fee.--The board shall fix and may establish classes for
<-11license <-application fees to be paid by persons or licensed
12business entities. <-An occupational <-A license fee shall not
13exceed $1,000. All fees shall be paid to the board and deposited
14into the State Racing Fund.

15(c) Application.--The application shall be in the form and
16contain the information as the board may require.

17(d) <-Duration <-Renewal.--All licenses shall be <-issued for
18three years and shall be renewed, upon payment of the required
19fee and continued compliance with this act.

20(e) Conditional license.--The board may establish a
21conditional license fee valid for four months within a 12-month
22period. No applicant may receive more than one conditional
23license within 12 months of the issuance of the applicant's
24preceding conditional license. <-subject to renewal every three
25years. Nothing in this act shall be construed to relieve a
26licensee of the affirmative duty to notify the board of any
27changes relating to the status of its license or to any other
28information contained in the application materials on file with
29the board. The application for renewal shall be submitted at
30least 60 days prior to expiration of the license and shall

1include an update of the information contained in the initial
2application and any prior renewal applications and the payment
3of any renewal fee required by the board. A license for which a
4completed renewal application and fee, if required, has been
5received by the board shall continue in effect unless and until
6the board sends written notification to the holder of the
7license that the board had denied the renewal of the license.

8(e) Licenses.--The board may issue one of the following:

9(1) A temporary license for four months within a 12-
10month period pending a final determination.

11(2) A conditional license upon the terms and conditions
12as necessary to administer this act.

13(f) Processing and issuance.--The board shall adopt
14regulations to fix the manner by which licenses are processed
15and issued.

16(g) Denial.--The board may deny a license under this
17section, if it determines that the applicant:

18(1) Has been convicted of bookmaking or other forms of
19illegal gambling.

20(2) Has been convicted of any fraud or misrepresentation
21in connection with racing or breeding.

22(3) Has been convicted of any violation or attempt to
23violate any law, rule or regulation of <-horse racing in any
24jurisdiction, for which suspension from <-horse racing might be
25imposed in that jurisdiction.

<-26(4) Has been convicted of an offense under 18 Pa.C.S. §
275511 (relating to cruelty to animals).

<-28(4) <-(5) Has violated any rule, regulation or order of
29the board.

<-30(5) <-(6) Has been convicted of an offense relating to

1fixing races.

<-2(6) <-(7) Has been convicted of a felony offense.

<-3(7)(<-8) Has failed to comply with payment requirements
4under section 304 relating to testing for medication.

<-5(9) The experience or character of any applicant or
6licensee is such that the participation in horse racing would
7be inconsistent with the best interest of horse racing.

8(h) Inspection.--The board shall have the right to inspect
9all contracts between licensed business entities and vendors for
10goods and services. The board shall adopt regulations to require
11vendors to disclose all principal owners and officers and a
12description of their interests in the vendors' business. Failure
13to disclose this information shall constitute grounds to deny,
14to revoke or to suspend any vendor's license issued under this
15act.

16(i) Suspension, revocation and refusal to renew.--The board
17may suspend, refuse to renew or revoke a license issued under
18this section, if:

19(1) The applicant or licensee:

20(i) has been convicted of bookmaking or other form
21of illegal gambling;

22(ii) has been convicted of any fraud <-or 
23misrepresentation in connection with racing or breeding;

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

<-28(iv) has been convicted of an offense under 18
29Pa.C.S. § 5511.

<-30(iv) <-(v) has violated any rule, regulation or order

1of the board;

<-2(v) <-(vi) has been convicted of a felony offense; <-or

3(vi) <-(vii) has failed to comply with payment
4requirements under section 304<-.;<- or

5(viii) has furnished the board with false or
6misleading information or that the information contained
7in the application or any renewal application is no
8longer true and correct.

9(2) The experience or character of any applicant or
10licensee is such that the participation of the person in
11horse racing or related activities would be inconsistent with
12the public interest or with the best interests of horse
13racing.

14(3) The applicant or licensee has been convicted of an
15offense related to fixing races unless the conviction has
16been overturned on appeal under the laws of the jurisdiction
17of the original finding.

<-18(4) In the event of a revocation or failure to renew,
19the applicant's authorization to conduct previously approved
20activity shall immediately cease and all fees paid in
21connection therewith shall be deemed to be forfeited. In the
22event of a suspension, the applicant's authorization to
23conduct the previously approved activity shall immediately
24cease until the board has notified the applicant that the
25suspension is no longer in effect.

<-26(j) Temporary license.--Pending a final determination under
27this section, the board may issue a temporary license upon such
28terms and conditions as are necessary to effectuate the
29provisions of this act.

30(k) <-(j) Hearings.--The board may suspend a license under

1subsection (i) pending a hearing on the matter. <-The hearing must
2take place within ten days of the suspension.

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

<-7Section 213.1-A. Totalisator.

8The following shall apply:

9(1) A person that provides totalisator services to a
10racing association located in this Commonwealth, including a
11totalisator company located in this Commonwealth or operating
12from a location outside this Commonwealth. A provider of
13totalisator services

<-14Section 213.1-A. Providers.

15(a) Totalisator provider.--Beginning at the renewal of an 
16existing contract or execution of a new contract, a person that 
17provides totalisator services to a licensed business entity 
18located in this Commonwealth shall be licensed by the board and 
19remit an annual license fee not to exceed $100,000. The license 
20fee shall be deposited in the State Racing Fund. The provider 
21shall submit information on operating systems and procedures as 
22required by the board.

<-23(2) A manufacturer, wholesaler, distributor or vendor of

<-24(b) Medical providers.--A manufacturer, wholesaler, 
25distributor or vendor of any equine drug, medication, 
26therapeutic substance or metabolic derivative purchased by or 
27delivered to a licensee or other individual participating in 
28horse racing in this Commonwealth by means of Internet, mail 
29delivery, in person delivery or other means <-shall be licensed by 
30the board. The board shall develop a fee schedule to licensed
 

1medical providers under this subsection.

2Section 214-A. Power of board to impose fines.

3(a) General rule.--The board may impose administrative fines
4upon any licensed or unlicensed business entity, association or
5person participating in horse racing at which pari-mutuel
6wagering is conducted, other than as a patron, for a violation
7of any provision of this act <-or rule or regulation of the board,
8not exceeding $100,000 for each violation. <-Each day may be 
9considered a separate violation. Fines shall be deposited in the
10State Racing Fund and may be appropriated for the enforcement of
11this act.

12(b) Interests.--

13(1) No owner, officer or employee of a licensed business
14entity or their spouses, parents, fathers-in-law, mothers-in-
15law, siblings, children, 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 business entity conducting the meet or in the
<-20track <-racetrack facility.

21(2) The board shall impose a fine upon any person for a
22violation of this subsection in accordance with subsection
23(a).

24Section 215-A. Security personnel.

25(a) General rule.--The board shall require licensed business
26entities to employ persons as security personnel. Designated
27security personnel may interrogate <-and eject,<- eject or exclude
28from the racetrack or enclosure any individual suspected of
29violating this act.

30(b) Penalty.--An individual found within a race track

1enclosure after having been refused admission thereto or ejected
2therefrom shall, upon conviction, be guilty of a summary offense
3and be sentenced to pay a fine of not more than $500.

4Section 216-A. Interstate simulcasting.

5The board may approve the application of a licensed business
6entity to electronically televise simulcasts of horse races to
7be operated by the licensed business entity at the race track
8enclosure where a horse race is being conducted during, between,
9before or after posted races for that racing day. Each simulcast
10of horse races from outside this Commonwealth shall comply with
11the Interstate Horseracing Act of 1978 (Public Law 95-515, 15
12U.S.C. § 3001 et seq.). All forms of pari-mutuel wagering under
13section 221-A shall be allowed on horse races to be televised by
14simulcasting. The board shall promulgate regulations regarding
15the wagering and the operation of <-the horse races <-interstate
16simulcasting of horse racing. All money wagered on horse races
17shall be computed in the amount of money wagered each racing day
18for purposes of taxation under section 222-A.

19Section 216.1-A. Televised simulcastings.

20(a) Host licensees.--Upon request by a licensed business
21entity, the board may designate the entity as a host licensee,
22authorized to maintain common pari-mutuel pools on international
23and interstate races transmitted to and from the racetrack
24enclosures within this Commonwealth. All simulcasts of horse
25races shall comply with the provisions of the Interstate
26Horseracing Act of 1978 (Public Law 95-515, 15 U.S.C. § 3001 et
27seq.) and the laws of each state involved, placed or transmitted
28by an individual in one state via telephone, Internet or other
29electronic media and accepted and maintained in common pari-
30mutuel pools. The designation as a host licensee for

1international and interstate simulcast races shall be limited to
2licensed business entities which comply with 4 Pa.C.S. § 1303(d)
3(relating to additional Category 1 slot machine license
4requirements).

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

6(1) Cross simulcasting of the races described in
7subsection (a) shall be permitted if all amounts wagered on
8the races in this Commonwealth are included in common pari-
9mutuel pools. A host licensee seeking permission to cross
10simulcast must obtain approval from the board.

11(2) Forms of pari-mutuel wagering shall be allowed on
12horse races to be televised by simulcasting. The board may
13permit pari-mutuel pools in this Commonwealth to be combined
14with pari-mutuel pools created under the laws of another
15jurisdiction and may permit pari-mutuel pools created under
16the laws of another jurisdiction to be combined with pari-
17mutuel pools in this Commonwealth. The board shall promulgate
18regulations necessary to regulate wagering on televised
19simulcasts.

20(c) Taxation.--Money wagered by patrons in this Commonwealth
21on <-the horse races shall be computed by the amount of money
22wagered each racing day for purposes of taxation under section
23222-A. Thoroughbred races shall be considered a part of a
24thoroughbred horse racing meeting and <-harness <-standardbred horse
25races shall be considered a part of a <-harness <-standardbred horse
26racing meeting.

27Section 217-A. (Reserved).

28Section 218.1-A. Place and manner of conducting pari-mutuel
29wagering.

30(a) Wagering location.--A licensed business entity shall

1provide a location during a horse racing meeting within the
2racetrack enclosure where the licensed business entity shall
3operate the pari-mutuel system of wagering by its patrons on the
4results of horse races held at the racetrack or televised to the
5racetrack enclosure by simulcasting under section 216.1-A. The
6licensed business entity shall erect a sign or board compatible
7with the totalisator systems which shall display all of the
8following:

9(1) The approximate straight odds on each horse in any
10race.

11(2) The value of a winning mutuel ticket, straight,
12place or show on the first three horses in the race.

13(3) The elapsed time of the race.

14(4) The value of a winning daily double ticket, if a
15daily double is conducted, and any other information that the
16board deems necessary to inform the general public.

17(b) Equipment.--The board may test and examine the equipment
18to be used for the display of the information under subsection
19(a).

<-20(c) Electronic wagering.--A licensed business entity may
21operate electronic wagering on horse racing in accordance with
22all of the following:

23(1) Messages to place wagers shall be to a place within
24the racetrack enclosure.

25(2) Money used to place wagers under this subsection
26shall be on deposit in an amount sufficient to cover the
27wager at the racetrack where the account is opened.

28The board may promulgate regulations necessary to regulate
29electronic wagering for horse racing.

30(d) Taxation.--Money wagered as a result of electronic

1wagering shall be included in the amount wagered each racing day
2for purposes of taxation under section 222-A and shall be
3included in the same pari-mutuel pools for each posted race.
4Electronic wagering shall be operated by the licensed business
5entity or by a duly licensed vendor.

6(e) Conditions.--

7(1) A licensed business entity shall only accept and
8tabulate a wager by a direct request via electronic media
9from the holder of an electronic wagering account. Only the
10holder of the electronic wagering account shall place a
11wager.

12(2) Any person who violates this subsection commits a
13misdemeanor of the first degree.

14(f) Primary market area.--

15(1) No licensed business entity may accept a wager or
16establish electronic wagering for any person located in the
17primary market area of a racetrack, other than the racetrack
18at which the licensed business entity is conducting a racing
19meet.

20(2) Nothing in this subsection shall be construed to
21prohibit a licensed business entity from accepting a wager
22from or establishing an electronic wagering account for any
23person located in the primary market area of the racetrack
24where the licensed business entity is conducting a meet. If
25two tracks share the primary market area, both racetracks
26shall have equal rights to the market in the shared area.

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 <-2015, 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 <-regulatory
30authority of the board shall apply to nonprimary locations

1and any employees or vendors of the licensed business entity
2establishing the nonprimary 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,<- daily double, quinella and trifecta
6wager.

7(c) Expenditures.--Funds collected and deposited under
8subsection (b) and any interest shall be used solely for the
9administration and enforcement of this act including:

10(1) Funds to the board in an amount appropriated by the
11General Assembly.

12(2) Funds to the Department of Revenue in an amount
13appropriated by the General Assembly.

14(d) Remainder.--The remainder of the money shall be
15distributed as follows:

16(1) An amount equivalent to 1% of the amount wagered
17each racing day at thoroughbred horse race meetings shall be
18paid by the <-Horse Racing Commission <-Department of Revenue
19from the State Racing Fund <-through the Department of Revenue
20for credit to the Pennsylvania Breeding Fund.

21(2) An amount equivalent to 1.5% of the amount wagered
22each racing day at <-harness <-standardbred horse race meetings
23shall be paid by the <-Harness Racing Commission <-Department of
24Revenue from the State Racing Fund through the Department of
25Revenue for credit to the Pennsylvania Sire Stakes Fund.

26(3) The remainder of the amount wagered each racing day
27shall be deposited in the State Racing Fund, for
28appropriation for <-projects relating to the promotion of horse
29racing.

30Section 222-A. Pari-mutuel pool distribution.

1(a) Distribution.--A licensed <-business entity shall
2distribute money in a pari-mutuel pool to the holders of winning
3ticket presented for payment before the first day of April of
4the year following the date of purchase. After April 1 of the
5year following the year of purchase, a licensed business entity
6shall forward the necessary funds held for uncashed tickets to
7the Department of Revenue. The funds shall be deposited into the
8State Racing Fund.

9(b) Remainder.--The remainder of the money shall be retained
10by the licensed entity in the following manner:

11(1) Seventeen percent of the money plus the breakage
12from regular wagering pools or 19% of the money plus the
13breakage from regular wagering pools for licensed entities
14whose daily total in all pari-mutuel pools averaged less than
15$300,000.

16(2) Twenty percent of the money plus breakage from the
17exacta, daily double, quinella and other wagering pools as
18determined by the board.

19(3) At least 26%, but no more than 35%, from the
20trifecta or other wagering pools as determined by the board.

21(c) Retention.--A licensed <-business entity may retain less
22percentages upon approval of the board.

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

27Section 223-A. Pennsylvania Breeding Fund.

28(a) Establishment.--There is hereby created a restricted
29account in the State Racing Fund to be known as the Pennsylvania
30Breeding Fund which shall consist of the money deposited under

1section 222-A <-and which shall be distributed by the Department 
2of Revenue.

3(b) Awards from the Pennsylvania Breeding Fund.--The
4Department of Revenue shall distribute money from the <-fund
<-5Pennsylvania Breeding Fund as follows:

6(1) An award of 30% of the purse earned by every
7registered Pennsylvania-bred thoroughbred racing horse sired
8by a registered Pennsylvania sire at the time of conception
9of the registered Pennsylvania-bred thoroughbred horse, or an
10award of 20% of the purse earned by every registered
11Pennsylvania-bred thoroughbred horse sired by a nonregistered
12sire, which finishes first, second or third in any race
13conducted by a licensed business entity under this act shall
14be paid to the breeder of said registered Pennsylvania-bred
15thoroughbred horse. A single award under this paragraph may
16not exceed 1% of 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 business
20entity 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 the Pennsylvania-
23bred thoroughbred horse. A single award under this paragraph
24may not exceed 0.5% 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 business
28entity under this act not restricting entry to registered
29Pennsylvania-bred thoroughbred horses shall be paid to the
30licensed owner of said registered Pennsylvania-bred

1thoroughbred horse at the time of winning. A single award
2under this paragraph may not exceed 0.5% of the total annual
3fund money.

4(c) Purses from Pennsylvania Breeding Fund.--Up to one-fifth
5of the total of the estimated <-fund <-Pennsylvania Breeding Fund
6money remaining each year after the deduction of expenses
7related to the administration and development of the
8Pennsylvania Breeding Fund program and the payment of breeder,
9stallion and owner awards, shall be divided among the licensed
10business entities that conduct thoroughbred horse racing
11meetings in direct proportion to the rate by which each licensed
12business entity generated the fund money during the previous
13year to be used solely for purses for Pennsylvania Breeding Fund
14stakes races which restrict entry to registered Pennsylvania-
15bred thoroughbred horses.

16(d) Remaining funds.--The <-fund <-Pennsylvania Breeding Fund
17money remaining following disbursements as directed in
18subsection (b)(1), (2) and (3) and subsection (c) shall be
19divided among the licensed business entities that conduct
20thoroughbred horse racing meetings in direct proportion to the
21rate by which each licensed business entity generated the fund
22money during the previous year to be used for purses as follows:

23(1) Claiming and nonclaiming Pennsylvania Breeding Fund
24races which restrict entry to registered Pennsylvania-bred
25thoroughbred horses.

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

1registered Pennsylvania-bred thoroughbred horses.

2(e) Funds not expended.--Pennsylvania Breeding Fund money
3due licensed business entities, as outlined in subsections (c)
4and (d), but not expended during the calendar year may be
5carried forth in the fund on the accounts of the licensed
6business entities to be expended during the succeeding year in
7addition to the business entities' fund money annually due them
8for purses.

9(e.1) Committee.--There is hereby established the
10Pennsylvania Breeding Fund Advisory Committee. The committee
11shall consist of members, who are residents of Pennsylvania, to
12be appointed by the board by June 1 of each year. The committee
13shall consist of two members of the Pennsylvania Horse Breeders'
14Association, one member from the licensed <-corporations <-business
15entities, one member from the association representing horsemen
16racing in Pennsylvania and one member of the board. If a member
17other than the board member has not been recommended by June 1
18of each year, the board shall make an appointment for the
19organization failing to so recommend a member of the committee.
20The committee shall assist and advise the board under the
21provisions of this act but shall have no power in administering
22the fund. Members of the advisory committee shall not receive
23compensation or reimbursements for participation on the
24committee.

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

1thoroughbred horses and Pennsylvania sires. Registration and
2records of the association shall be official records of the
3Commonwealth. At the close of each calendar year, the
4Pennsylvania Horse Breeders' Association shall submit to the
5board for its approval an itemized budget of projected expenses
6for the ensuing year relating to the administration and
7development of the Pennsylvania Breeding Fund program. The board
8shall reimburse the Pennsylvania Horse Breeders' Association for
9those expenses actually incurred in the administration and
10development of the Pennsylvania Breeding Fund program from the
<-11fund <-Pennsylvania Breeding Fund, no more than on a quarterly
12basis. <-No more than 5% of the fund may be utilized for
13administrative costs.

14Section 224-A. Pennsylvania Sire Stakes Fund.

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

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

21(1) Sixty percent of the money remaining in the excess
22fund account of the Pennsylvania Sire Stakes Fund at the end
23of the calendar year in which this subsection is enacted
24shall be distributed to licensed business entities that
25conduct <-harness <-standardbred horse racing meetings to be used
26in the next succeeding calendar year as purse money for
27Pennsylvania-sired horses. The remaining 40% of the money in
28the excess fund account at the end of the calendar year of
29the enactment of this subsection, together with the interest
30earned on that money, shall be distributed to licensed

1business entities that conduct <-harness <-standardbred horse
2racing meetings to be used in the next succeeding calendar
3year following the next succeeding calendar year as purse
4money for Pennsylvania-sired horses.

5(2) After deduction of sufficient funds to cover the
6board's cost of administration, 80% of all remaining money in
7the Pennsylvania Sire Stakes Fund at the end of the calendar
8year shall be distributed to licensed business entities that
9conduct <-harness <-standardbred horse racing meetings to be used
10as purse money for Pennsylvania-sired horses. The board may
11allocate up to a total of 40% of the amount to be distributed
12to licensed business entities in a calendar year for use for
13a series of championship final races at the race tracks of
14licensed business entities that conduct <-harness <-standardbred
15horse racing meetings. The <-Department of Revenue <-board shall
16distribute the money to these championship final races in an
17equal amount for each sex, age and gait for two-year-old and
18three-year-old trotters and pacers based on conditions
19establishing eligibility to these final events. No pari-
20mutuel <-harness track <-standardbred racetrack shall be awarded
21more than 50% of the championship final races in any calendar
22year. The board shall schedule these final events so as to
23evenly alternate classes at each race track each year. After
24the allocation for the championship final races has been
25determined, the remaining funds to be distributed to licensed
26business entities that conduct <-harness <-standardbred horse
27racing meetings shall be divided equally among the licensed
28business entities. Each licensed business entity shall divide
29the funds received equally for each of:

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

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

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

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

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

15Section 225-A. Fair Fund proceeds.

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

1allotment shall be retained in the fund.

2(b) Inspection.--The Department of Agriculture shall
3annually inspect each track facility <-at a county fair and advise
4each operating fair about track maintenance which is necessary
5to ensure adequate racing surface during the course of scheduled
6fairs and racing events. If it is the opinion of the Department
7of Agriculture that the fair society or event sponsor is not
8adequately financing track maintenance, the Department of
9Revenue shall surcharge the Fair Fund account of the fair
10society or event sponsor to effectuate the remediation.

11Section 226-A. Hearing.

12If the board denies any license application or revokes or
13suspends any license granted, an applicant or licensee may
14demand, within ten days after notice of the decision of the
15board, a hearing before the board. The provisions of 2 Pa.C.S.
16Chs. 5 Subch. A (relating to practice and procedure of
17Commonwealth agencies) and 7 Subch. A (relating to judicial
18review of Commonwealth agency action) shall apply.

19Section 227-A. (Reserved).

20Section 228-A. Prohibition of wagering.

21No board member or employee of the board shall wager upon the
22outcome of any horse race conducted at <-or simulcast to a track
23at which pari-mutuel wagering is conducted by any licensed
24business entity of the board. No licensed business entity shall
25permit any person who is actually and apparently under 18 years
26of age to wager at a racing meeting conducted by the licensed
27business entity. No licensed business entity shall permit any
28person who is under 18 years of age to attend a horse racing
29meeting conducted by the licensed business entity unless the
30person is accompanied by a parent or guardian. This section

1shall not be construed to prohibit persons under 18 years of
2age, who are legally employed, from being upon the race track
3premises for the sole purpose of engaging in the performance of
4their duties as employees.

5Section 229-A. Veterinarians and State stewards.

6(a) General rule.--The board shall have the authority to
7contract with licensed veterinarians <-and stewards,<- stewards and
8other personnel deemed appropriate by the board to serve at each
9meeting conducted by a <-business entity licensed by the board
<-10licensed business entity. The board may employ other individuals
11as shall be necessary to carry out the responsibilities of this
12section.

13(b) Costs and compensation.--The costs and compensation of
14the horse racing veterinarians, State stewards and other
<-15individuals personnel shall be fixed and paid by the board <-from
16the State Racing Fund.

<-17(c) Steward requirements.--The board shall establish a job
18description and professional criteria for stewards to assure
19that they have a working knowledge of the horse racing industry.

<-20(c) Agricultural society horse racing.--The department of
21agriculture may promulgate regulations to oversee horse racing
22conducted by a county agricultural society or an independent
23agricultural society, as provided for under section 5(1)(iii)
24and (iv) of the act of July 8, 1986 (P.L.437, No.92), known as 
25the Pennsylvania Agricultural Fair Act.

26Section 230-A. (Reserved).

<-27Section 231-A. Free passes, cards or badges.

28(a) Issuance.--A licensed business entity may not issue a
29free pass, card or badge, without admission tax except to:

30(1) an owner, officer, employee or shareholder of the

1licensed business entity conducting the racing meeting;

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

3(3) a member of a horse racing association of another
4state or foreign country;

5(4) a public officer engaged in the performance of his
6duty;

7(5) an individual employed and accredited by the press
8to attend the meeting; or

9(6) an owner, stable manager, trainer, jockey,
10concessionary or other individual whose duties require a
11presence at the race track.

12(b) Promotions and discounts.--The board may approve a
13licensed business entity to issue a free pass, card or badge for
14a special promotional program and seasonal discount ticket
15program. The admission tax under section 208-A shall be imposed
16on the price of the seasonal discount tickets sold by a licensed
17business entity.

18(c) Regulations.--A free pass, card or badge shall be issued
19in accordance with regulations of the board.

20(d) List.--Except persons admitted under an approved special
21promotional program or seasonal discount ticket program, a list
22of the individuals to whom a free pass, card or badge is issued
23shall be filed with the board.

<-24Section 231-A. Promotions and discounts.

25The board may approve a licensed business entity to issue a
26free pass, card or badge for a special promotional program and
27seasonal discount ticket program.

28Section 232-A. (Reserved).

29Section 233-A. Monitoring of wagering on video screens.

30A licensed business entity conducting pari-mutuel wagering

1shall display on video screens the approximate odds or
2approximate will-pays on each horse for each race as well as a
3combination of races, including quinellas, exactas, perfectas
4and any other combination or pool of races. A display of
5approximate odds or approximate will-pays is not required where
6the wager is on horses in four or more races, such as "Pick 4,
7Pick 5 or Pick 6." In addition to displaying the amount of money
8wagered, the approximate odds or approximate will-pays on each
9horse or combination of horses must be shown on video screens in
10each wagering division. For trifectas, in lieu of odds or
11approximate will-pays, the amount of money being wagered on each
12horse to win in the trifecta pool must be displayed on video
13screens separately from any other information. Information must
14be displayed from the opening of bets or wagering and be
15continually displayed until the wagering is closed. At least one
16video screen in each wagering division shall display the amount
17of money wagered on each horse involved in a trifecta pool.

18Section 234-A. Simulcasting.

19(a) General rule.--The board shall permit intrastate
20simulcasting of live racing.

21(b) Simulcast signal.--The simulcast signal shall be
22encoded, and the racetrack receiving the simulcast signal may
23not send the signal anywhere other than a public location
24authorized under section 218.1-A or 218.2-A.

25(c) Forms of pari-mutuel wagering.--The forms of pari-mutuel
26wagering described in section 221-A are allowed on a race to be
27televised by simulcasting under this section.

28(d) Regulations.--The board may promulgate regulations on
29wagering and the operation of horse racing.

30(e) Computation of money wagered.--The money wagered by a

1patron on a race must be computed in the amount of money wagered
2each racing day for purposes of taxation under section 222-A.

3(f) Thoroughbred and <-harness <-standardbred horse
4racetracks.--If a simulcast is between a thoroughbred racetrack
5and a <-harness <-standardbred horse racetrack, the board has
6jurisdiction. An approval required under this section must be
7received from the board, provided that if an agreement is not
8reached between the organization representing the horsemen, the
9licensed business entity may petition the court of common pleas
10in the county in which the licensed entity's racetrack is
11located. The court of common pleas may direct the organization
12representing the horsemen to approve the simulcast agreement
13upon good cause shown by the licensed business entity that
14failure to consent would be detrimental to the racing industry
15in this Commonwealth. The board may authorize the simulcasting
16if the simulcasting will have a significant value to the racing
17industry in this Commonwealth.

18(g) Definition.--As used in this section, the term "racing
19day" consists of a minimum of eight live races, except at
20thoroughbred tracks on Breeders' Cup Event Day.

21Section 235-A. Commingling.

22(a) Applicability.--This section is applicable only to
23licensed business entities that conduct thoroughbred racing.

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

1for the licensed business entity for which the race secretary or
2designee is acting.

3(c) Horsemen's Account.--A licensed business entity shall
4maintain a separate account, to be known as a Horsemen's 
5Account. Money owed to owners in regard to purses, stakes,
6rewards, claims and deposits shall be deposited into the
7Horsemen's Account. Funds in the account are recognized and
8denominated as being the sole property of owners. Deposited
9funds may not be commingled with funds of the licensed business
10entity unless a licensed business entity established an
11irrevocable clean letter of credit with an evergreen clause in 
12favor of the organization which represents a majority of the 
13owners and trainers racing with the licensed business entity.
14The minimum amount of the credit must be the greater of
15$1,000,000 or 110% of the highest monthly balance in the
16Horsemen's Account in the immediate prior year. To calculate the
17monthly balance in the Horsemen's Account, the sum of the daily
18balances shall be divided by the number of days in the month.
19The evergreen clause must provide that:

20(1) thirty days prior to the expiration of the letter of
21credit, the financial institution can elect not to renew the
22letter of credit;

23(2) upon an election under paragraph (1), the financial
24institution must notify the designee of the organization that
25represents a majority of the owners and trainers racing with
26the licensed business entity, by registered mail, return
27receipt requested, of the election not to renew; and

28(3) the financial institution will honor the letter of
29credit for six months after expiration.

30Purse money earned by owners shall be deposited by the licensed

1business entity in the Horsemen's Account within 48 hours after
2the result of the race in which the money was earned has been
3declared official and the purse has been released by the board.

4(d) <-Bookkeeper <-Accounting.--A licensed business entity shall
5designate <-a bookkeeper who is <-individuals authorized to receive
6and disburse funds from the Horsemen's Account. <-The bookkeeper
7must <-Individuals designated under this subsection shall be
8bonded to provide indemnity for malfeasance, nonfeasance and
9misfeasance. A certified copy of the bond shall be filed with
10the board.

11(e) Examination, access and records.--The Horsemen's Account
12and the investment and deposit schedules relating to the account
13are subject to examination, at reasonable times, by a designee
14of the organization which represents a majority of the owners
15and trainers racing with the licensed business entity and by the
16board. The <-bookkeeper <-individual designated under subsection (d)
17shall provide each owner with access, at reasonable times during
18a racing day, to the amount of funds in the Horsemen's Account
19credited to that owner. At the close of a horse racing meeting,
20the <-bookkeeper <-designated individual shall mail to each owner a
21record of deposits, withdrawals and transfers affecting the
22amount of funds in the Horsemen's Account credited to that
23owner.

24(f) Auditing and monthly statements.--The Horsemen's Account
25shall be audited annually and at any other time determined by
26the board. Monthly statements shall be provided to the designee
27of the organization which represents a majority of the owners
28and trainers racing with the licensed business entity <-and the 
29board.

30(g) Interest.--Fifty percent of the money earned as interest

1on funds in the Horsemen's Account shall be paid to the
2organization that represents a majority of the owners and
3trainers racing with the licensed business entity on a weekly
4basis. The amount is for the benefit of the horsemen as
5determined by the organization that represents the majority of
6the owners and trainers racing with the licensed business
7entity. The remaining 50% of the interest earned is for the
8benefit of the licensed business entity that has the
9responsibility to fund the costs associated with the
10administration of the fund. Interest each month must be earned
11in an amount equal to the Federal Reserve Discount Rate on the
12first day of the month.

13Section 236-A. <-Harness <-Standardbred horse racing purse money.

14A licensed <-harness horse racing association <-business entity
15must place on deposit with the board by March 1 of each year an
16irrevocable letter of credit equivalent to its average weekly
17purse total from the immediate prior year. The board shall hold
18the letter of credit in trust for the <-harness <-standardbred
19horsemen racing at that licensed business entity's horse race
20meeting if the purse checks are not issued or insufficient funds
21are available to cover the purse checks.

<-22Section 237-A. (Reserved).

23Section 238-A. Agricultural society horse racing.

24The Department of Agriculture shall promulgate regulations to
25oversee horse racing conducted by a county agricultural society
26or an independent agricultural society, as provided for under
27section 5(1)(iii) and (iv) of the act of July 8, 1986 (P.L.437,
28No.92), known as the Pennsylvania Agricultural Fair Act.

29Section 4. Section 301 of the act is amended to read:

30Section 301. Mandatory requirements for medication rules.

1(a) [The commissions shall have in effect at all times when]
2When a licensed [corporation] business entity conducts a horse
3racing meeting with pari-mutuel wagering the board shall have in 
4effect rules or regulations to control the use and
5administration of any medication and the use and administration
6of any device that affects the performance of a race horse. The
<-7[commissions] board may <-[commissions may establish permitted
8tolerance levels and therapeutic dose allowances for all
9medication to be used or administered to a race horse.<-] board 
10shall adopt a comprehensive schedule of equine drugs, 
11medications, therapeutic substances or metabolic derivatives 
12which are authorized to be administered to race horses, 
13including tolerance levels and therapeutic dose allowances. The 
14board shall consult with the Pennsylvania Board of Veterinary 
15Medicine, academic institutes in other states and experts as 
16necessary to develop the approved schedule.

17(b) The [commissions] board shall establish in their rules 
18or regulations penalty provisions for the violation of these 
19rules or regulations.

20Section 5. Section 302(a) and (c) of the act, amended May
2116, 1986 (P.L.205, No.63), are amended to read:

22Section 302. Establishment of the Pennsylvania Race Horse
23Testing Program.

24(a) There is hereby established the Pennsylvania Race Horse
25Testing Program. The program shall be administered by [a
26management committee composed of the two chairpersons of the
27commissions, the Secretary of Agriculture and two persons
28appointed by the Governor. One person appointed by the Governor
29must be a doctor of veterinary medicine or a veterinary medical
30doctor and a member of the faculty of a school of veterinary

1medicine located within this Commonwealth and the other person
2must be employed within the private sector and have a background
3in biological and/or chemical laboratory management. The program
4is placed in and made a part of the Department of Agriculture]
5the board. All costs of the program shall be paid by the
6[commissions] fees collected under section 304. [Subject to all
7provisions of the act of April 9, 1929 (P.L.177, No.175), known
8as "The Administrative Code of 1929," that apply to the
9department, the management committee shall appoint and direct
10all personnel as necessary, establish a facility or contract for
11the provision of testing services, acquire all necessary
12equipment and supplies and adopt all necessary procedures.]

13* * *

14[(c) In order to evaluate the effectiveness of testing
15services performed by personnel of the Department of Agriculture
16and determine whether the manner in which these services are
17provided, the tests utilized and tolerance levels permitted
18should be modified, the commissions shall equally fund a
19contracted evaluation of existing laboratory services to be
20conducted by a nongovernmental entity with documented expertise
21to accurately evaluate existing laboratory services and
22formulate recommendations for improvement of the testing
23program. Upon review of the evaluation results, the department
24may implement in consultation with the management committee a
25program to improve laboratory services, including, if necessary
26and appropriate, the selection of a contractor or contractors to
27provide testing services. This study shall be completed on or
28before January 1, 1987, and copies provided to the Governor, the
29President pro tempore of the Senate, the Speaker of the House of
30Representatives and the members of the State Government

1Committees of the Senate and the House of Representatives within
215 working days.]

3Section 6. Section 304 of the act is amended to read:

4Section 304. Costs of the enforcement of the medication rules
5or regulations.

6[All costs for the collection and testing samples for any 
7manner of medication shall be paid by the commissions.] The 
8board shall establish a fee schedule to be charged to horse 
9owners for the actual costs of the collections and testing for 
10medication. The costs of collections and testing shall include 
11the cost of equipment, supplies and facilities, except holding 
12barns or stables, to be located at race horse meeting 
13facilities, grounds or enclosures or at other locations 
14designated by the board<-, which. The fee schedule shall be 
15published in the Pennsylvania Bulletin and shall be in effect 60 
16days after being published.

<-17Section 6.1. The following shall apply:

18(1) Notwithstanding any other law, no later than 180
19days after the effective date of this section, the State
20Horse Racing Commission and the State Harness Racing
21Commission shall cease to exist and the powers and duties of
22the State Horse Racing Commission and the State Harness
23Racing Commission shall be transferred to the Pennsylvania
24Gaming Control Board. Notification of the date of the
25transfer of the powers and duties of the State Horse Racing
26Commission and State Harness Racing Commission to the
27Pennsylvania Gaming Control Board shall be submitted by the
28Pennsylvania Gaming Control Board for publication in the
29Pennsylvania Bulletin.

30(2) Upon the transfer of the powers and duties of the

1State Horse Racing Commission and the State Harness Racing
2Commission to the Pennsylvania Gaming Control Board, the
3following shall apply:

4(i) The following shall be transferred to and shall
5become employees of the Pennsylvania Gaming Control Board
6and their status as an employee of the Department of
7Agriculture shall cease:

8(A) An individual who is employed by the
9Department of Agriculture and assigned to the State
10Horse Racing Commission or the State Harness Racing
11Commission.

12(B) An individual who is employed by the
13Department of Agriculture and whose duties
14substantially involve licensing or enforcement, the
15development of laws or the development or adoption of
16regulations or policy related to horse racing under
17the act or who have other discretionary authority
18which may affect the outcome of an action, proceeding
19or decision under the act.

20(ii) Subject to the provisions of subparagraphs
21(xii), (xiii) and (xiv), the Pennsylvania Gaming Control
22Board shall establish salaries and other compensation for
23an individual transferred under subparagraph (i) in
24accordance with the existing policies of the Pennsylvania
25Gaming Control Board.

26(iii) An individual transferred under subparagraph
27(i) shall remain a State employee for purposes of 71
28Pa.C.S. Pt. XXV and the individual's service shall be
29considered continual and uninterrupted.

30(iv) Subject to the provisions of subparagraphs

1(xii), (xiii) and (xiv), on and after the date of
2transfer to the Pennsylvania Gaming Control Board, a
3transferred employee shall be eligible for paid holidays
4and the accrual of sick and annual leave and any other
5leave in accordance with the policies of the Pennsylvania
6Gaming Control Board.

7(v) Sick and annual leave accrued by a transferred
8employee prior to the date of transfer shall be
9transferred based upon the accrued sick and annual leave
10balances credited to the transferred employee by the
11Department of Agriculture as of the day immediately
12preceding the transferred employee's date of transfer.

13(vi) The Department of Agriculture shall provide
14payment to the Pennsylvania Gaming Control Board for the
15accrued sick and annual leave time transferred under
16subparagraph (v). Within 30 days of the transfer of
17employees, the Department of Agriculture shall provide in
18writing to the Pennsylvania Gaming Control Board all
19leave information requested by the Pennsylvania Gaming
20Control Board for employees transferred under
21subparagraph (i).

22(vii) Subject to the provisions of subparagraphs
23(xii), (xiii) and (xiv), accrued sick or annual leave
24which exceeds the maximum allowed by the policies of the
25Pennsylvania Gaming Control Board in effect on the day
26immediately preceding the date of transfer and any other
27leave may not be transferred and credited. The Department
28of Agriculture shall provide a lump sum payment to an
29individual transferred under subparagraph (i) for sick or
30annual leave and any other leave which is not transferred

1and credited under this paragraph.

2(viii) Subject to the provisions of subparagraphs
3(xii), (xiii) and (xiv), transferred employees and their
4dependents shall continue to be eligible to receive
5medical plan benefits, supplemental benefits and other
6benefits as determined by the trustees of the
7Pennsylvania Employees Benefits Trust Fund.

8(ix) Subject to the provisions of subparagraphs
9(xii), (xiii) and (xiv), transferred employees and their
10dependents shall continue to be eligible to elect
11coverage upon retirement under the Retired Employees
12Health Program.

13(x) The Department of Agriculture shall be obligated
14and required to provide a lump sum payment to the
15Pennsylvania Gaming Control Board to underwrite or offset
16the cost of accrued Retired Employees Health Program and
17pension benefits.

18(xi) The Pennsylvania Gaming Control Board shall
19submit a report to the chairman and minority chairman of
20the Appropriations Committee of the Senate and the
21chairman and minority chairman of the Appropriations
22Committee of the House of Representatives containing the
23expenditures for compensation and related expenditures
24for individuals who are transferred under this section.

25(xii) All collective bargaining agreements and
26memoranda of understanding, including any side letters
27attendant to a collective bargaining agreement and
28memoranda of understanding, between the Commonwealth and
29an employee organization covering employees transferred
30under subparagraph (i) shall remain in force and effect.

1The Pennsylvania Gaming Control Board shall become a
2signatory to the collective bargaining agreements and
3memoranda of understanding.

4(xiii) An employee transferred under subparagraph
5(i) shall retain the right to union representation and
6collective bargaining as an employee of the Pennsylvania
7Gaming Control Board.

8(xiv) Within 90 days after the effective date of
9this section, the Pennsylvania Gaming Control Board and
10the employee organization representing transferred
11employees shall enter into negotiations for purposes of
12negotiating terms specific to the transferred employees,
13including promotions, transfers, seniority and other
14necessary items.

15(xv) Nothing under this act shall be construed to
16require an employee transferred to the Pennsylvania
17Gaming Control Board under subparagraph (i) to obtain a
18license or permit under this act or 4 Pa.C.S. Pt. II as a
19condition of employment with the Pennsylvania Gaming
20Control Board.

<-21Section 7. This act shall take effect in 60 days.

<-22Section 7. When the Pennsylvania Gaming Control Board is
23prepared to implement this act, it shall transmit notice to the
24Legislative Reference Bureau for publication in the Pennsylvania
25Bulletin.

26Section 8. This act shall take effect as follows:

27(1) The following provisions shall take effect
28immediately:

29(i) Section 7 of this act.

30(ii) This section.

1(2) The remainder of this act shall take effect upon the
2earlier of the following:

3(i) The date of publication of the notice under
4section 7 of this act.

5(ii) In 180 days.