Regular Session 2015-2016 Senate Bill 0352 P.N. 1436

HOUSE AMENDED

PRIOR PRINTER'S NOS. 259, 505, 1059

PRINTER'S NO. 1436

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

352

Session of

2015

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

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

AS REPORTED FROM COMMITTEE ON AGRICULTURAL AND RURAL AFFAIRS,

HOUSE OF REPRESENTATIVES, AS AMENDED, NOVEMBER 23, 2015

AN ACT

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

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

thoroughbred horse racing and harness horse racing

activities; imposing certain taxes and providing for the

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

provisions, further providing for definitions; repealing

provisions relating to the State Horse Racing Commission and

State Harness Racing Commission; in racing oversight,

providing for racing oversight, for pari-mutuel wagering

licensing and for advance deposit wagering; providing for

compliance; in medication rules and enforcement provisions,

further providing for mandatory requirements for medication

rules, for establishment of Pennsylvania Race Horse Testing

Program, for costs for enforcement of medication rules; and

providing for the cessation of the State Horse Racing

Commission and the State Harness Racing Commission; PROVIDING

FOR A STUDY; AND MAKING A REPEAL.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

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

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

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

Section 102. Definitions.

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The following words and phrases when used in this act shall

have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

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

5,280 feet for purposes of this act.]

"Account." An account for account wagering with a specific

identifiable record of deposits, wagers and withdrawals

established by an account holder and managed by the licensed

racing entity or secondary pari-mutuel organization.

"Account holder." An individual who successfully completed

an application and for whom the licensed racing entity or

secondary pari-mutuel organization has opened an account.

"Advance deposit account wagering system." A system by which

wagers are debited and payouts are credited to an advance

deposit account held by a licensed racing entity or secondary

pari-mutuel organization on behalf of a person.

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

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

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

the applicant is a person other than an individual, the

commission shall determine the associated persons whose

qualifications are necessary as a precondition to the licensing

of the applicant.

"Backside area." An area of the racetrack enclosure that is

not generally accessible to the public and which includes, but

is not limited to, a facility commonly referred to as a barn,

PADDOCK ENCLOSURE, track kitchen, recreation hall, backside

employee quarters and training track, and roadways providing

access to the area. The term does not include an area of the

racetrack enclosure which is generally accessible to the public,

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including the various buildings commonly referred to as the

grandstand or the racing surface , paddock enclosure and walking

ring.

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

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

next lowest multiple of ten.

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

available to the beneficiary against presentation of only a

draft or receipt.

"Commission." The State Horse Racing Commission.

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

State Harness Racing Commission.

"Commissioners." The persons appointed by the Governor and

confirmed by the Senate who serve on the State Horse Racing

Commission or the State Harness Racing Commission and who

administer the applicable provisions of this act.]

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

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

"Conviction." A finding of guilt or a plea of guilty or nolo

contendere, whether or not a judgment of sentence has been

imposed as determined by the law of the jurisdiction in which

the prosecution was held. The term does not include a conviction

that has been expunged or overturned or for which an individual

has been pardoned or an order of accelerated rehabilitative

disposition.

"Electronic wagering." A method of placing or transmitting a

legal wager by an individual in this Commonwealth through

telephone, electro-mechanical, computerized system or any other

form of electronic media approved by the commission and accepted

by a secondary pari-mutuel organization or a licensed racing

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entity or the licensed racing entity's approved off-track

betting system located in this Commonwealth.

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

for automatic renewal of the letter of credit.

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

engaged in or received by a commissioner of the commission

regarding the merits of, or any fact in issue relating to, a

pending matter before the commission or which may reasonably be

expected to come before the commission in a contested on-the-

record proceeding. The term shall not include:

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

the Department of Revenue, Pennsylvania State Police,

Attorney General or other law enforcement official, prior to

the beginning of the proceeding solely for the purpose of

seeking clarification or correction to evidentiary materials

intended for use in the proceedings.

(2) A communication between the commission or a

commissioner and legal counsel.

"Felony." An offense under the laws of this Commonwealth or

the laws of another jurisdiction, punishable by imprisonment for

more than five years.

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

other beneficial interest in an entity. The term shall not

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

the following:

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

sharing plan, individual retirement account, tax-sheltered

annuity, a plan established under section 457 of the Internal

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

any successor provision, deferred compensation plan whether

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qualified or not qualified under the Internal Revenue Code of

1986, or any successor provision or other retirement plan

that:

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

(ii) Is advised by an independent investment adviser

who has sole authority to make investment decisions with

respect to contributions made by the individual to these

plans.

(2) A tuition account plan organized and operated under

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

self-directed by the individual.

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

fund in a licensed racing entity does not constitute a

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

to definitions).

"Horse race meeting." A specified period and dates each year

during which a licensed racing entity is authorized to conduct

live racing or pari-mutuel wagering as approved by the

commission.

"Horse racing." Standardbred horse racing and thoroughbred

horse racing.

"Horseman's organization." A trade association which

represents the majority of owners and trainers who own and race

horses at a racetrack.

"Immediate family." A spouse, parent, brother, sister or

child.

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

credit which cannot be canceled or amended unless there is an

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

credit.

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

5,280 feet , AS MEASURED IN A STRAIGHT LINE .

["Licensed corporations." The corporations that have

obtained a license from either the State Horse Racing Commission

or the State Harness Racing Commission to conduct thoroughbred

or harness horse race meetings respectively with pari-mutuel

wagering.]

"Licensed racing entity representative." A person, including

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

authorized to represent the interest of any applicant, licensee,

permittee or other person authorized by the commission to engage

in any act or activity regulated by the commission under this

act regarding any matter before, or which may be reasonably

expected to come before, the commission. The term shall include

a person representing a horseman's organization or a horse

breeder's organization.

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

license to conduct live thoroughbred or harness horse race

meetings respectively with pari-mutuel wagering from the

commission.

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

"Nominal change in ownership." The sale, pledge,

encumbrance, execution of an option agreement or other transfer

of less than 5% of the equity securities or other ownership

interest of a person whose percentage ownership does not affect

the decisions of the licensed racing entity.

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

wagering is conducted by a licensed racing entity pursuant to

this act other than the [primary racetrack location] racetrack

where live racing is conducted.

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["Nonprimary location statement." The written statement

pursuant to this act submitted to the appropriate commission by

a licensed corporation planning to establish a nonprimary

location.]

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

hold, debt or equity securities or other ownership interest or

profit interest.

"Pari-mutuel wagering." A form of wagering, including

manual, electronic, computerized and other forms as approved by

the commission, on the outcome of a horse racing event in which

all wagers are pooled and held by a licensed racing entity or

secondary pari-mutuel organization for distribution of the total

amount, less the deductions authorized by law, to holders of

winning tickets.

"Person." Any natural person, corporation, foundation,

organization, business trust, estate, limited liability company,

license corporation, trust, partnership, limited liability

partnership, association or any other form of legal business

entity.

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

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

of 35 land miles.

"Principal." Any of the following individuals associated

with a partnership, trust association, limited liability company

or corporation:

(1) The chairman and each member of the board of

directors of a corporation.

(2) Each partner of a partnership and each participating

member of a limited liability company.

(3) Each trustee and trust beneficiary of an

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association.

(4) The president or chief executive officer and each

other officer, manager and employee who has policy-making or

fiduciary responsibility within the organization.

(5) Each stockholder or other individual who owns, holds

or controls, either directly or indirectly, 5% or more of

stock or financial interest in the collective organization.

(6) Any other employee, agent, guardian, personal

representative, lender or holder of indebtedness who has the

power to exercise a significant influence over the

applicant's or licensee's operation.

"Racetrack." The physical facility where a licensed

[corporation] racing entity conducts thoroughbred or [harness]

standardbred race meetings respectively with pari-mutuel

wagering.

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

"racetrack enclosure," with respect to each licensed

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

one primary racetrack location at which horse race meetings

authorized to be held by the licensed [corporation] racing

entities are conducted, including the grandstand, frontside and

backside facilities and all primary, nonprimary, contiguous and

noncontiguous locations of the licensed [corporation] racing

entity which are specifically approved by the [appropriate]

commission for conducting the pari-mutuel system of wagering on

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

race meetings conducted by another licensed [corporation] racing

entity or [televised] transmitted to such locations by

simulcasting.

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

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

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

of the racetrack.

"Secondary pari-mutuel organization." A licensed entity,

other than a licensed racing entity, that offers and accepts

pari-mutuel wagers. A PERSON OR ENTITY THAT PROVIDES TO A

LICENSED RACING ENTITY HARDWARE, SOFTWARE, EQUIPMENT, CONTENT OR

SERVICES USED TO MANAGE, CONDUCT, OPERATE OR RECORD PARI-MUTUEL

WAGERING ACTIVITY BY OR FROM RESIDENTS OF THIS COMMONWEALTH

SHALL NOT BE DEEMED TO BE A SECONDARY PARI-MUTUEL ORGANIZATION

SOLELY BY VIRTUE OF THE PROVISION OF THE ASSETS OR SERVICES.

"Simulcast." [The transmission of live electronically

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

track receiving the television transmission.] Live video and

audio transmission of a race and pari-mutuel information for the

purpose of pari-mutuel wagering at locations other than the

racetrack where the race is run.

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

horse racing in which the horses participating are attached "in

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

gait, either a trot or pace.

"Substantial change in ownership." The sale, pledge,

encumbrance, execution of an option agreement or another

transfer of 5% or more of the equity securities or other

ownership interest of a person whose percentage ownership

affects the decisions of the licensed racing entity.

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

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

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

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

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race.

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

sales, calculate payoffs and display wagering data on a display

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

location.

Section 2. Chapter 2 of the act is repealed:

[CHAPTER 2

STATE HORSE RACING COMMISSION AND STATE HARNESS

RACING COMMISSION

Section 201. Establishment of the commissions.

(a) The State Horse Racing Commission is hereby established

as a departmental administrative commission within the

Department of Agriculture. The commission shall have general

jurisdiction over all pari-mutuel thoroughbred horse racing

activities in the Commonwealth and the corporations engaged

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

racing" means that form of horse racing in which each

participating horse is mounted by a jockey, is duly registered

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

the flat. Thoroughbred horse racing may include a steeplechase

or hurdle race. The commission shall consist of three members

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

and consent of the Senate. Each commissioner shall hold office

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

(b) The State Harness Racing Commission is hereby

established as a departmental administrative commission within

the Department of Agriculture. The commission shall have general

jurisdiction over all pari-mutuel harness racing activities in

the Commonwealth and the corporations engaged therein. The

commission shall consist of three members who shall be appointed

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

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

years and until a successor is qualified.

expenses incurred in the performance of their official duties.

The commissioners shall be paid $150 per diem for performing

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

the commissioners for each commission shall be appointed by the

Governor as chairperson. The commissioner appointed by the

Governor as chairperson shall serve in that position at the

pleasure of the Governor. The Secretary of Agriculture or his

designee shall be a nonvoting ex officio member of the

commissions. The commissions shall meet at least once a month

and at other times as the Secretary of Agriculture or the

commission chairperson deems necessary. Adequate public notice

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

commissioner who fails to attend three consecutive meetings

shall be subject to removal. A commissioner shall be excused

from meetings due to illness or death of an immediate family

member. All commissioners shall be licensed under the provisions

of section 213.

(d) Each commission shall engage an executive secretary,

deputies, secretaries, officers and representatives as it may

deem necessary, who shall serve during its pleasure. The

commissions shall also engage other employees as they see fit

and whose duties shall be prescribed by the commissions and

whose compensation shall be fixed by the commissions within the

appropriations available. Legal counsel for the commissions

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

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

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

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

Administrative Code of 1929," as to classification and

compensation for all its employees.

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

a full and faithful record of the proceedings of the

commissions, preserve at the general office of the commissions

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

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

may be required by the commissions and perform other duties as

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

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

a docket setting forth the names of all stockholders in all

corporations licensed under this act, the number of shares held

by each stockholder and the date on which each shareholder

acquired stock in the licensed corporation. The docket shall be

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

executive secretary to appear before the Appropriations

Committees of the Senate and the House of Representatives for

budgetary review and recommendations.

(f) The commissions or designated officers, employees or

agents of the commissions shall have the power to administer

oaths and examine witnesses and may issue subpoenas to compel

attendance of witnesses and production of all relevant and

material reports, books, papers, documents, correspondence and

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

report to the Secretary of Agriculture of their proceedings for

the preceding calendar year and suggestions and recommendations

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

duties in accordance with the provisions of "The Administrative

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Code of 1929."

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

three commissioners who constitute the State Horse Racing

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

referred to as the Pennsylvania Thoroughbred Horse Racing Law,

shall continue under this act. Any commissioner whose term has

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

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

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

replaced by a new member or confirmed for another term.

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

three commissioners who constitute the State Harness Racing

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

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

shall continue under this act. Any commissioner whose term has

already expired on the effective date of this section and who

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

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

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

(i) All rules and regulations promulgated under the

provisions of the Pennsylvania Thoroughbred Horse Racing Law and

the Pennsylvania Harness Racing Law shall remain in effect

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

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

alter these rules and regulations as they deem necessary.

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

of the Pennsylvania Thoroughbred Horse Racing Law and under the

provisions of section 9 of the Pennsylvania Harness Racing Law,

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

these licenses were issued. After these licenses have expired,

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all renewals or new licenses shall be issued under the

provisions of this act.

(k) All licenses issued to corporations under the provisions

of section 7 of the Pennsylvania Thoroughbred Horse Racing Law

and under the provisions of section 7 of the Pennsylvania

Harness Racing Law, shall continue with the same force and

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

Section 202. General powers of the commissions.

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

to supervise all thoroughbred horse race meetings at which pari-

mutuel wagering is conducted. The State Harness Racing

Commission shall have the power to supervise all harness horse

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

commissions may adopt rules and regulations to effect the

purposes and provisions of this act.

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

addition to its other powers:

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

charge for admission to horse race meetings at which pari-

mutuel wagering is conducted, but the minimum charge shall

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

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

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

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

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

minimum prescribed therein.

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

rules and regulations as required under Chapter 3 regarding

medication rules and enforcement provisions.

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

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all winning pari-mutuel tickets must be presented for payment

before April 1 of the year following the year of their

purchase and failure to present the ticket within the

prescribed period of time shall constitute a waiver of the

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

following, all licensed corporations will forward to the

State Treasurer through the Department of Revenue for credit

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

tickets. Where it is shown to the satisfaction of the

appropriate commission and the Department of Revenue, through

substantiated and recorded data, that the reason for the

pari-mutuel ticket or tickets being outstanding and unclaimed

is loss, misplacement or theft within the confines and

control of the pari-mutuel department of any licensed

corporation and it is shown to the satisfaction of the

appropriate commission and the Department of Revenue that the

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

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

the approval of the appropriate commission, may adjust and

credit the licensed corporation's outstanding ticket account

accordingly on March 31 of the year following the year of

purchase or after a complete audit of the outstanding tickets

accounts have been performed. The licensed corporation shall

reimburse any employee who has been held personally

accountable and paid for the lost, misplaced or stolen

tickets.

(4) The commissions may adopt a general promotion

program to assist the licensed corporations in increasing

their attendance and average daily handle. Any expenditures

for a promotional program shall be authorized and approved in

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the same manner as other operational costs of the

commissions.

(5) In the event that a state bordering Pennsylvania

enacts a wagering tax scheme that may place Pennsylvania

horse race meetings at a competitive disadvantage in the

purses that can be offered for horse races, a licensed

corporation may petition the appropriate commission for an

emergency financial grant to augment its purse structure. If

the appropriate commission finds that the effect of the

enacted wagering tax scheme of a bordering state is to place

Pennsylvania horse race meetings at a competitive

disadvantage in purse structure, the appropriate commission

shall make an emergency financial grant to the petitioning

licensed corporation for augmentation to its purse structure

out of moneys that the commission has budgeted for this

purpose; provided, however, that the Secretary of Agriculture

and the Secretary of the Office of Budget and Administration

have also agreed to the grant.

jurisdiction over and shall promulgate regulations as necessary

for the proper administration of all racing conducted by a

county agricultural society or an independent agricultural

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

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

Agricultural Fair Act."

Section 203.

race meet except on obtaining a license from the appropriate

commission and at the location or locations designated in its

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

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

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

corporation whose racing plant or usefulness, in the discretion

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

control of the corporation, be totally destroyed or so

substantially interfered with as to render same unfit for

continued operation. Pending the rebuilding or restoration of

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

plant or the part destroyed or damaged, the commissions may

license such corporation to conduct its horse race meetings at

any other suitable location.

Section 204. Filing of information concerning stock transfers;

necessity for commissions' approval.

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

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

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

licensed corporation the track facility at which it conducts

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

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

licensed corporation shall be made, there shall be filed,

simultaneously, with the corporation which issued such stock the

following:

(1) In duplicate, an affidavit executed by the

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

beneficial owner thereof, and whether or not he:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has been engaged in bookmaking or other forms

of illegal gambling;

(iii) has been found guilty of any fraud or

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misrepresentation in connection with racing or breeding;

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

violate any law, rule or regulation of any racing

jurisdiction, for which suspension from racing might be

imposed in such jurisdiction; or

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

the commissions.

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

the sole beneficial owner, there shall be annexed to the

affidavit of the transferee, and expressly stated in such

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

agreement pursuant to which the interest in the corporation

is to be held by the transferee, including a detailed

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

interest therein.

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

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

setting forth whether or not the affiant:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has engaged in bookmaking or other forms of

illegal gambling;

(iii) has been found guilty of any fraud or

misrepresentation in connection with racing or breeding;

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

violate any law, rule or regulation of any racing

jurisdiction, for which suspension from racing might be

imposed in such jurisdiction; or

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

the commissions.

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To each of the affidavits shall be annexed, and expressly

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

terms of the agreement pursuant to which the interest is to

be held by the transferee, including a detailed statement of

the interest of each person who is to have any interest

therein. The corporation shall file with the appropriate

commission one of each duplicate affidavits.

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

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

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

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

corporation with which his affidavit was so filed a new

affidavit, executed by him in duplicate, setting forth the

change of status and the corporation shall file one of these

affidavits with the appropriate commission.

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

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

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

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

attempted to be changed or created, shall file with the

corporation which issued the stock, in duplicate, affidavits as

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

affidavits need not include the matter referred to in subsection

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

thereof shall be filed by the corporation with the appropriate

commission.

(d) If the appropriate commission determines that it is

inconsistent with the public interest, convenience, or

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

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

beneficial owner of any interest in stock standing in the name

of another in any licensed corporation or of any corporation

which leases to such licensed corporation the track at which it

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

the stock of the licensee, the appropriate commission shall have

full power and authority to order each stockholder or beneficial

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

time to be specified by the appropriate commission, which period

the appropriate commission shall have full power to extend.

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

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

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

commission, at which time the appropriate commission will hear

the person in reference thereto.

Section 205. Number of horse racing corporations.

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

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

meets. No corporation licensed under this act to conduct harness

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

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

Harness Racing Law, shall be licensed to conduct thoroughbred

horse racing with pari-mutuel wagering.

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

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

meets. No corporation licensed under this act to conduct

thoroughbred horse racing with pari-mutuel wagering or under the

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

Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to

conduct harness horse racing with pari-mutuel wagering.

20150SB0352PN1436 - 20 -

Section 206. Responsibilities of the Department of Revenue.

The Department of Revenue is charged with the financial

administration of pari-mutuel wagering under this act, as

supplemented by the rules and regulations of the commissions.

The Department of Revenue shall have authority to prescribe the

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

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

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

Section 207. Allocation of racing days.

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

allocated to each licensed corporation conducting thoroughbred

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

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

additional 25 racing days over the 125 days to a licensed

corporation in each calendar year, if racing meet schedules can

accommodate these extra days. Whenever two or more corporations

licensed to conduct racing at the same facility apply to the

State Horse Racing Commission for an allocation of racing days

at the same facility, the commission shall allocate the racing

days in the following manner:

(1) If there is an agreement between the licensed

corporations as to the allocation of racing days then as

provided for therein.

(2) If there is no agreement between the licensed

corporations as to the allocation of racing days, then

equally between them.

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

licensed corporation conducting harness horse race meetings in

any calendar year. Every corporation shall hold its license

under the provisions of section 209. The State Harness Racing

20150SB0352PN1436 - 21 -

Commission shall allocate the racing days in accordance with the

following guidelines:

(1) A licensed corporation that has an ownership

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

conducted shall be granted up to 125 racing days in any

calendar year upon request to the State Harness Racing

Commission. The State Harness Racing Commission shall grant

all racing days requested by licensed corporations described

in this paragraph before any other racing days are granted to

any other licensed corporation that desires to conduct a meet

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

corporation that also desires to conduct a meet there.

(2) Whenever one or more licensed corporations that have

an ownership interest in the facility at which the racing

days are to be conducted apply to the State Harness Racing

Commission for an allocation of racing days, the State

Harness Racing Commission shall allocate an equal number of

racing days to each licensed corporation or to each licensed

corporation based upon an agreement between the licensed

corporations as to the allocation of racing days.

(3) Upon request the State Harness Racing Commission may

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

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

commission may grant up to 50 additional days of racing if

that corporation is the only corporation operating at the

facility, if racing meet schedules can accommodate these

extra racing days.

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

shall mean that a licensed corporation directly or through a

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

20150SB0352PN1436 - 22 -

track facility at which it conducts harness horse race

meetings or is the primary tenant at such facility. For

purposes of this subsection, a primary tenant shall be that

licensed corporation, if any, which is a tenant conducting

horse race meetings at a track facility at which no licensed

corporation conducting horse race meetings has directly or

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

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

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

which dates are requested, then among or between such tenants

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

among or between those licensed corporations which propose to

conduct horse race meetings at the said track facility during

the year for which dates are requested.

Department of Revenue within 20 days after the allocation of

racing days to licensed corporations the following information:

(1) the names and addresses of the corporations;

(2) the names and addresses of the presidents and

general managers of the corporations;

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

racing days are to be conducted;

(4) the number of racing days allocated to each

corporation; and

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

calendar day of the year for the purposes of taxation.

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

for reasons beyond its control, the appropriate commission shall

grant the licensed corporation the right to conduct that racing

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

20150SB0352PN1436 - 23 -

permit. The racing day for purposes of taxation under section

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

corporation conducted a racing day during that year.

Section 208. State admissions taxes.

(a) Every corporation holding a thoroughbred horse race

meeting under this act shall collect, in addition to the

admission price of tickets sold or otherwise disposed of, for

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

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

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

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

the Department of Revenue within ten days of collection. The

amounts collected shall be paid into the State Treasury to the

credit of the State Racing Fund. Before any corporation liable

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

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

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

Revenue containing the name of the place and stating the time

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

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

agricultural association. Retroactive to September 1, 1981 and

thereafter, the admission tax shall be decreased to a tax

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

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

tax equivalent to 5% of the admission price.

(b) Every corporation holding a harness horse race meeting

shall collect, in addition to the admission price of tickets

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

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

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

20150SB0352PN1436 - 24 -

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

paid to the Department of Revenue within ten days after the

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

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

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

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

the corporation shall pay all taxes due and file a statement

with the Department of Revenue containing the name of the place

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

this section shall apply to a race meeting conducted by any

state, county or other agricultural association.

examine the books and records of the corporation conducting any

horse race meeting and may hear testimony and take proofs and

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

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

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

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

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

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

is not paid when due.

Section 209. Licenses for horse race meetings.

(a) Any corporation desiring to conduct horse race meetings

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

the appropriate commission for a license. The license gives its

holder the privilege to conduct horse race meetings at which

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

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

commission, the public interest, convenience or necessity will

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

20150SB0352PN1436 - 25 -

shown, the appropriate commission may issue the license. The

license shall remain in effect so long as the licensed

corporation complies with all conditions, rules and regulations

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

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

preponderance of the evidence that the corporation, its

officers, employees or agents, has not complied with the

conditions, rules, regulations and provisions of this act and

that it would be in the public interest, convenience or

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

transferable.

(b) Every license shall be issued upon the following

conditions:

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

is conducted is subject to the supervision of and to the

reasonable rules and regulations prescribed by the

appropriate commission.

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

the supervision of and to the reasonable regulations

prescribed by the Department of Revenue. Any license may also

be issued upon any other condition that the appropriate

commission determines to be necessary or desirable to insure

that the public interest, convenience or necessity is served.

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

evidence that it has obtained the use of a facility to

conduct horse race meetings. The proof may be demonstrated by

documentation of an ownership interest in the facility or by

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

paragraph, an ownership interest shall mean that a licensed

corporation directly or through a parent or subsidiary has at

20150SB0352PN1436 - 26 -

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

conducts horse race meetings or is the primary tenant at such

facility. For purposes of this paragraph, a primary tenant

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

conducting horse racing meetings at a track facility at which

no licensed corporation conducting horse race meetings has

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

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

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

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

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

by agreement among or between those licensed corporations

which propose to conduct horse race meetings at the said

track facility during the year for which dates are requested.

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

commission, a bond or irrevocable letter of credit in an

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

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

determined by the appropriate commission on the basis of the

immediately preceding year, during the year for which dates

are requested.

(5) The licensed corporation prints in its racing

programs the procedure for filing a complaint with the

appropriate commission.

prescribed by the appropriate commission and shall contain

information, material or evidence as the appropriate commission

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

discretion of the licensed corporation.

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

20150SB0352PN1436 - 27 -

corporation, the commissions may give consideration to the

number of licenses already granted. No license shall be granted

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

other political subdivision fair conducting horse racing unless

the association, corporation, society, political subdivision or

State agency conducting the fair shall affirmatively waive

objection to the issuance of the license for dates within the

period.

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

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

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

corporation applying for a license or of any corporation

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

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

leases to the applicant the track where it shall operate:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has engaged in bookmaking or other forms of

illegal gambling;

(iii) has been found guilty of any fraud or

misrepresentation in connection with racing or breeding;

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

violate any law, rule or regulation of any racing

jurisdiction, for which suspension from racing might be

imposed in such jurisdiction; or

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

the commissions.

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

director or stockholder of any of the corporations is such

that the participation of the person in horse racing or

20150SB0352PN1436 - 28 -

related activities would be inconsistent with the public

interest, convenience or necessity or with the best interests

of racing. If the commission determines that the interest of

any stockholder referred to in this paragraph or in paragraph

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

mutuel horse racing by the corporation in accordance with the

provisions of this act, the commissions may disregard the

interest in determining whether or not to grant a license to

the corporation.

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

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

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

association or corporation other than the applicant shares,

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

dividends as a stockholder, or participates, or will

participate in the management of the affairs of the

applicant.

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

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

preponderance of the evidence. The proof may be demonstrated

by documentation of an ownership interest in the facility or

by a written lease for use of the facility.

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

written lease of a facility to conduct horse race meetings.

Under this paragraph, the appropriate commission may suspend

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

the suspension, the appropriate commission may then revoke

the license, if the licensed corporation has failed to

contract for a facility at which to conduct horse race

meetings.

20150SB0352PN1436 - 29 -

(6) A licensed corporation has commingled horsemen's

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

on deposit a letter of credit under section 236.

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

grant, revoke or suspend a license:

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

incorporation of which shall fail to contain a provision

requiring any stockholder, upon written demand of the

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

to be fixed by the appropriate commission, provided the

demand be made pursuant to written direction of the

appropriate commission and from the date of the making of the

demand prohibiting the transfer of the certificate of stock

except to the corporation.

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

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

properly maintain its track and plant in good condition or

has failed to make adequate provision for rehabilitation and

capital improvements to its track and plant.

(g) Pending final determination of any question under this

section, the commissions may issue a temporary license upon such

terms and conditions as they see fit to effectuate the

provisions of this act.

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

certificate of stock of a licensed corporation shall bear a

legend, plainly and prominently imprinted upon the face of the

certificate, reading: "This certificate of stock is transferable

only subject to the provisions of the 'Race Horse Industry

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

to stock heretofore issued by a licensed corporation under the

20150SB0352PN1436 - 30 -

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

amended, and referred to as the Pennsylvania Thoroughbred Horse

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

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

Racing Law.

Section 210. Shareholders.

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

the appropriate commission with a complete list of all its

shareholders, indicating the number of shares by each

shareholder.

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

ten days after any transfer of stock comprising an interest of

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

commission of the transfer.

corporation to a shareholder having a 5% or greater interest

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

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

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

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

stock represented by the certificate in trust for any person,

partnership, firm or corporation who or which is prohibited from

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

represented by a certificate of stock are held subject to the

terms of either an inter vivos or testamentary trust for the

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

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

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

attached. A duplicate copy of the instrument which created the

trust shall be filed with the appropriate commission.

20150SB0352PN1436 - 31 -

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

any licensed corporation which are held in trust contrary to the

provisions of this section and the same shall be forfeited to

the Commonwealth after reasonable notice and upon hearing and

proof thereof in any suit instituted by the Attorney General of

Pennsylvania. Upon it being established that the stock is

subject to forfeiture by legal adjudication, the appropriate

commission shall sell the forfeited stock at public sale, upon

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

shall be deposited in the General Fund of the Commonwealth of

Pennsylvania.

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

shall include any licensed corporation as defined in section 102

and also any firm, association or corporation which owns or

leases to any licensed association or corporation a race track

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

association or corporation which participates in the management

of any such licensed corporation.

Section 211. Prohibition of interest by public officers, public

employees and party officers in pari-mutuel racing

activities.

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

shall:

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

the commissions;

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

interest, stock or obligation of any firm, association or

corporation:

(i) which is licensed by the commissions to conduct

pari-mutuel racing;

20150SB0352PN1436 - 32 -

(ii) which is licensed to conduct its occupation,

trade or business at race tracks at which pari-mutuel

race meets are conducted;

(iii) which owns or leases to any licensed

association or corporation a race track at which pari-

mutuel racing is conducted; or

(iv) which participates in the management of any

licensed corporation conducting pari-mutuel racing; and

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

association or corporation specified in paragraph (2); or

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

the stock of any corporation which sells any goods or

services to any firm, association or corporation specified in

paragraph (2).

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

employee other than a police officer or paid employee of a

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

or other law enforcement agency so long as such employment of

employees of a political subdivision may be prohibited by

ordinance, resolution or local law.

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

cause for removal from public office, public employment or party

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

party officer, violating this section, shall be removed from

office by appropriate authority having the power of removal.

shall have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

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

political party:

20150SB0352PN1436 - 33 -

(1) a member of a national committee;

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

counsel of a State committee or member of the executive

committee of a State committee;

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

or treasurer of a county committee; or

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

or treasurer of a city committee.

"Public employee." Every person employed by the Commonwealth

or any political subdivision thereof.

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

of the Commonwealth or any political subdivision thereof.

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

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

corporation which aids or knowingly permits or conspires to

permit any public officer, public employee or party officer to

acquire or retain any interest prohibited by this section.

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

other than members, employees or appointees of the commissions

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

track.

Section 212. Officials at horse race meetings.

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

State Horse Racing Commission, qualified judges and starters

shall be approved by the commission. These officials shall

enforce the rules and regulations of the State Horse Racing

Commission and shall render written reports of the activities

and conduct of such race meetings to the State Horse Racing

Commission. The compensation of these judges and starters shall

be paid by the corporation conducting the race meeting.

20150SB0352PN1436 - 34 -

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

Harness Racing Commission, qualified judges and starters shall

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

judge or starter unless he is licensed by the United States

Trotting Association as a duly qualified pari-mutuel race

meeting official. The officials shall enforce the rules and

regulations of the State Harness Racing Commission and shall

render regular written reports of the activities and conduct of

the race meetings to the State Harness Racing Commission. The

compensation of the presiding judge and two associate judges at

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

Racing Commission. The commission shall adopt a selection

process to approve the appointment of these officials. The

licensed corporations shall participate in this selection

process for approval of these officials.

Section 213. Licenses for commissioners, employees and

participants at horse race meetings.

(a) Each commission shall license trainers, jockeys,

drivers, persons participating in thoroughbred and harness horse

race meetings, horse owners and all other persons and vendors

exercising their occupation or employed at thoroughbred and

harness horse race meetings. The license gives its holder a

privilege to engage in the specified activity, but the license

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

transferable. Each commission shall fix the license fees to be

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

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

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

State Treasury through the Department of Revenue and credited to

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

20150SB0352PN1436 - 35 -

contain the information as each commission may require.

Applicants must have their fingerprints taken or have

fingerprint records on file with the respective commission, the

Federal Bureau of Investigation, the State Police or any other

organization recognized by the respective commission as part of

the background investigation. Each commission may exempt

applicants from the fingerprint requirement for positions not

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

security or the management operations of the racing corporation

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

and shall be automatically renewed, upon payment of the required

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

establish a temporary license and fee valid for four months

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

more than one temporary license within 12 months of the issuance

of his or her preceding temporary license. The commissions may

also stagger the termination dates and renewal dates of the

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

orderly manner that provides for approximately one-third of the

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

manner by which licenses are processed and issued by rule or

regulation.

(b) All commissioners and all employees, agents and

representatives of the commissions shall be licensed under this

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

shall fix by rule or regulation the manner in which these

licenses under this subsection shall be processed and issued.

and general fitness of the applicant are such that the

participation of the person in horse race meets is consistent

20150SB0352PN1436 - 36 -

with the public interest, convenience and necessity, and with

the best interests of racing generally in conformity with the

purposes of this act, it may grant a license.

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

section, if they shall find that the applicant:

(1) Has been convicted of a crime involving moral

turpitude.

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

gambling.

(3) Has been found guilty of any fraud or

misrepresentation in connection with racing or breeding.

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

violate any law, rule or regulation of racing in any

jurisdiction, for which suspension from racing might be

imposed in that jurisdiction.

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

commissions.

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

this section if they shall find that the applicant has been

convicted of an offense relating to fixing races. This

subsection shall not apply if the conviction is overturned on

appeal under the laws of the jurisdiction of the original

finding.

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

contracts between licensed corporations and vendors for goods

and services. Each commission shall require by rule or

regulation that vendors disclose to the appropriate commission

all principal officers and a description of their interests in

the vendors' business. Failure to properly disclose this

information shall constitute grounds to deny, to revoke or to

20150SB0352PN1436 - 37 -

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

act.

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

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

(1) The applicant or licensee:

(i) has been convicted of a crime involving moral

turpitude;

(ii) has engaged in bookmaking or other form of

illegal gambling;

(iii) has been found guilty of any fraud in

connection with racing or breeding;

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

violate any law, rule or regulation of any racing

jurisdiction for which suspension from racing might be

imposed in that jurisdiction;

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

the commissions; or

(vi) has been convicted of a felony offense related

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

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

any applicant or licensee is such that the participation of

the person in horse racing or related activities would be

inconsistent with the public interest, convenience or

necessity or with the best interests of racing.

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

revoke a license issued under this section if it shall determine

that the applicant or licensee has been convicted of an offense

related to fixing races unless the conviction has been

overturned on appeal under the laws of the jurisdiction of the

original finding.

20150SB0352PN1436 - 38 -

(g) Pending final determination of any question under this

section, the commissions may issue a temporary license upon such

terms and conditions as they may deem necessary or proper to

effectuate the provisions of this act.

(h) The commissions may suspend a license under subsection

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

within ten days of the suspension.

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

states that do not grant licenses to citizens of this

Commonwealth on the basis of in-state preference.

Section 214. Power of commissions to impose fines and

penalties.

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

granted by them, the commissions are authorized and empowered to

impose fines upon any corporation, association or person

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

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

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

provision of this act or the rules and regulations promulgated

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

which fines shall be paid into the State Treasury through the

Department of Revenue and credited to the General Fund.

Following exhaustion of any administrative remedies promulgated

by the commissions for such purpose, the action of the

commissions in imposing any monetary fine shall be subject to

appeal to the Commonwealth Court and as approved by that court

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

collected in an action of assumpsit.

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

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

20150SB0352PN1436 - 39 -

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

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

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

relative holds any interest in the licensed corporation

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

employee of a licensed corporation or their spouses, parents,

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

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

it at meets that are conducted by licensed corporations or at

race tracks in which such a person or heretofore-mentioned

relative holds no direct or indirect interest. Each commission

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

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

purposes of this subsection an interest shall not include:

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

being a registered Pennsylvania-bred thoroughbred horse under

the provisions of section 223; and

(2) any interest in a licensed corporation or track

facility that was held by a person, partnership, association

or corporation on or before January 1, 1988.

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

(a) The commissions and any licensed corporations are

authorized and empowered to employ persons as security

personnel. These persons shall possess the powers and duties of

a peace officer with respect to the enforcement of the criminal

laws of the Commonwealth within the race meeting grounds or

enclosure. The designated persons are also authorized to

interrogate and eject from the race meeting grounds or enclosure

any persons suspected of violating any rule or regulation

promulgated by the commissions. The commissions may refuse

20150SB0352PN1436 - 40 -

admission to and eject from enclosure of the race track operated

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

in the judgment of the commission, inconsistent with the orderly

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

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

action of the commissions in refusing any person admission, or

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

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

religion of that person and shall be reviewable by the

Commonwealth Court.

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

licensed corporation may refuse admission to and eject from the

enclosure of the race track operated by any association any

person except that no person shall be refused admission or be

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

or religion of that person.

from the enclosure of the race track operated by the

corporation, any person licensed by the commissions under

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

presence there is deemed detrimental to the best interests of

horse racing, citing the reasons for that determination. The

action of the corporation in refusing the person admission to or

ejecting him from a race meeting ground or enclosure shall have

immediate effect. The person refused admission or ejected shall

receive a hearing before the appropriate commission, if

requested, pursuant to rules and regulations adopted for that

purpose by the appropriate commission and a decision rendered

following that hearing.

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

20150SB0352PN1436 - 41 -

eject a law enforcement official while that official is actually

engaged in the performance of official duties.

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

having been refused admission thereto or ejected therefrom

shall, upon conviction thereof in a summary proceeding, be

sentenced to pay a fine not exceeding $300 or undergo

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

Section 216. Interstate simulcastings of horse races.

Each commission may, upon request by any licensed

corporation, grant permission for electronically televised

simulcasts of horse races to be operated by the licensed

corporation at the race track enclosure where a horse race

meeting is being conducted during, between, before or after

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

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

at thoroughbred tracks on the one day designated as Breeders'

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

simulcasts shall be limited to horse races conducted at

facilities outside this Commonwealth and televised to race track

enclosures within this Commonwealth. The simulcasts shall also

be limited to thoroughbred races designated as Grade I stakes,

or the international equivalent thereto, with purses of at least

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

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

appropriate commission, significant value to the Pennsylvania

racing industry. Cross simulcasting of the aforementioned races

shall be permitted as long as the particular race is available

to all race tracks in the Commonwealth which are operating live

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

Commonwealth shall also comply with the provisions of the

20150SB0352PN1436 - 42 -

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

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

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

simulcasting. Each commission may promulgate rules or

regulations to regulate the wagering and the operation of these

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

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

for purposes of taxation under section 222.

Section 216.1. Televised international and interstate

simulcastings of horse races.

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

corporation, grant permission to maintain common pari-mutuel

pools on international and interstate races transmitted to and

from the racetrack enclosures within this Commonwealth, such

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

The permission to act as host licensee for international and

interstate simulcast races shall be limited to licensed

corporations:

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

organization representing a majority of owners and trainers

at the facility where the licensed corporation conducts

racing dates;

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

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

predecessor at the facility where the licensed corporation

conducts racing dates; and

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

control of the licensee, conduct not less than eight live

races per race date during each meet at the facility where

the licensed corporation conducts racing dates, except for

20150SB0352PN1436 - 43 -

thoroughbred tracks on the day designated as Breeder's Cup

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

live races.

A horseman's organization representing a majority of owners and

trainers at a racetrack may consent to waiving or modifying the

provisions pertaining to the required number of racing days and

races per day scheduled by a licensed corporation at that

racetrack.

(b) Cross simulcasting of the races described in subsection

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

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

host licensee seeking permission to cross simulcast must obtain

approval from both the State Harness Racing Commission and the

State Horse Racing Commission. All simulcasts of horse races

shall also comply with the provisions of the Interstate Horse

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

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

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

Each commission may permit pari-mutuel pools in this

Commonwealth to be combined with pari-mutuel pools created under

the laws of another jurisdiction and may permit pari-mutuel

pools created under the laws of another jurisdiction to be

combined with pari-mutuel pools in this Commonwealth. Each

commission may promulgate rules or regulations to regulate

wagering on televised simulcasts.

these horse races shall be computed in the amount of money

wagered each racing day for purposes of taxation under section

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

thoroughbred horse race meeting and all harness races shall be

20150SB0352PN1436 - 44 -

considered a part of a harness horse race meeting for purposes

of section 222(b)(5).

Section 217. Refunds.

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

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

account the same were received, on proof satisfactory to the

commissions that:

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

law;

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

refused by the commission;

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

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

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

imposed and paid.

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

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

moneys in the State Racing Fund.

Section 218. Place and manner of conducting pari-mutuel

wagering.

(a) Every licensed corporation shall provide during a horse

race meeting a place or places within the race track enclosure

at which the licensed corporation shall conduct the pari-mutuel

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

held at such meetings or televised to the race track enclosure

by simulcasting. The licensed corporation shall erect a sign or

board upon which shall be displayed the approximate straight

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

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

20150SB0352PN1436 - 45 -

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

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

information that the commissions may deem necessary for the

guidance of the general public. The commissions may prescribe,

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

display of the foregoing information.

(b) Each commission may upon request by any licensed

corporation grant permission to the licensed corporation to

conduct a telephone account wagering system: Provided, however,

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

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

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

sufficient to cover the wager at the race track where the

account is opened. Each commission may promulgate rules or

regulations to regulate telephone account wagering. All moneys

wagered as a result of telephone account wagering shall be

included in the amount wagered each racing day for purposes of

taxation under section 222 and shall be included in the same

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

wagering systems shall be solely operated by the licensed

corporations.

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

wagering account. No person shall directly or indirectly act as

an intermediary, transmitter or agent in the placing of wagers

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

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

race track enclosure on behalf of a holder of a telephone

wagering account. Only the holder of a telephone wagering

account shall place a telephone wager. Any person violating this

20150SB0352PN1436 - 46 -

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

(d) A licensed corporation shall not accept a telephone

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

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

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

at which the licensed corporation is conducting a racing meet.

Nothing herein shall prohibit the licensed corporation from

accepting a telephone wager from, or establishing a telephone

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

primary market area of the track at which the licensed

corporation is conducting a meet and, if two tracks share

primary market area as defined herein, both tracks shall have

equal rights to the market in the shared area.

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

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

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

miles.

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

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

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

miles, but not including the primary market area of the

racetrack.

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

contrary, upon approval by the appropriate commission, a

licensed corporation may establish one or more nonprimary

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

horse races conducted by such licensed corporation and may

conduct pari-mutuel wagering on horse races conducted by another

licensed corporation, which horse races may be televised to the

locations, or on horse races simulcast to the locations pursuant

20150SB0352PN1436 - 47 -

to section 216, provided that:

(1) No licensed corporation may establish nonprimary

locations within the primary market area, as set forth in

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

which the licensed corporation conducts race meetings.

Establishment of a nonprimary location by a licensed

corporation within the primary market area of a racetrack at

which the licensed corporation conducts race meetings shall

require approval of the commission regulating the activities

of such licensed corporation.

(2) Any licensed corporation may establish a nonprimary

location within the secondary market area of a racetrack as

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

location is approved by both the State Harness Racing

Commission and the State Horse Racing Commission.

(3) Any licensed corporation may establish a nonprimary

location in areas outside the primary and secondary market

areas of any racetrack, provided that the location is

approved by the commission which regulates the activities of

the licensed corporation establishing the location.

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

nonprimary location established by more than one licensed

corporation, by agreement between the licensed corporations

and with the approval of the appropriate commission, one

licensed corporation may operate the pari-mutuel equipment

for one or more of the licensed corporations at that

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

the racetrack enclosure of each of the licensed corporations

approved to conduct pari-mutuel wagering at that location.

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

20150SB0352PN1436 - 48 -

a nonprimary location, shall submit to the appropriate

commission a nonprimary location statement in a form

prescribed by the appropriate commission which specifies,

but is not limited to, the following:

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

to be created at the proposed facility.

(B) The population of the town or municipality,

and surrounding area, where the proposed facility is

to be located.

any other nonprimary location or licensed racetrack.

(D) The type of seating to be provided,

including areas in the proposed facility where

patrons can handicap races.

(E) The total seating capacity of the proposed

facility.

(F) The size and number of toilet facilities.

(G) The availability of food and beverages,

including the number of tables, chairs, kitchen

facilities and concession stands.

(H) The number of available parking spaces.

(I) A description of the general demeanor of the

facility, including lighting, decor and plans for the

exterior of the facility.

(J) The number of betting windows and stand-

alone terminals to be provided.

(K) A description of the heating and air

conditioning units, the smoke removal equipment and

other climate control devices.

(L) The total square feet of the proposed

20150SB0352PN1436 - 49 -

facility.

(ii) The General Assembly recognizes the economic

importance of the horse racing industry in this

Commonwealth; and further recognizes that the

Pennsylvania horse racing industry is in a state of

decline. Therefore, it is the intent of the General

Assembly through this amendatory act to revitalize and

secure the economic future of the horse racing industry

and to encourage statewide economic development by

assisting in the development of nonprimary locations. It

is the further intent of the General Assembly through

this amendatory act that in no case shall the appropriate

commission approve a nonprimary location statement when

the sole purpose of that statement is to provide wagering

opportunities pursuant to this act; rather, the

appropriate commission shall only approve a nonprimary

location statement that plans for a public facility

offering not only wagering opportunities, but other

amenities, such as high class restaurants and quality

handicapping facilities, so that all or part of the

nonprimary facility will resemble the clubhouse

facilities of a racetrack. It is the further intent of

the General Assembly through this amendatory act to offer

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

racing and wagering industry, but more particularly in

other service jobs, such as parking attendants, waiters

and waitresses, security guards, custodial workers and

food service personnel.

(iii) In determining whether the nonprimary location

statement meets the legislative intent of this amendatory

20150SB0352PN1436 - 50 -

act, the appropriate commission shall consider factors

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

(A) The purposes and provisions of this

amendatory act.

(B) The public interest.

(D) The impact on the local community.

(E) The potential for job creation.

(F) The quality of the physical facilities and

all services to be provided therein.

(iv) In considering whether the appropriate

commission will grant, suspend or revoke approval of

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

shall apply. In connection therewith, the commission

shall annually conduct inspections of the primary

facility.

(v) The rights, duties and obligations of the

appropriate commission, as set forth in this amendatory

act, shall apply to nonprimary locations and any

employees or vendors of the licensed corporation

establishing the nonprimary location.

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

(10), any licensed corporation which is authorized to

conduct racing at any primary racetrack location at which

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

minimum of 142 days of live racing shall not be eligible

to establish nonprimary locations outside its primary

market area and shall only be eligible to establish

nonprimary locations within its primary market area

according to the following schedule.

20150SB0352PN1436 - 51 -

Year Number of

live racing

days

conducted

Number of days

in subsequent

year permitted

to operate

nonprimary

locations within

primary market

area

Number of

live racing

days

conducted

Number of days

in subsequent

year permitted

to operate

nonprimary

locations

within primary

market area

1988 50 365

1989 69 365 Under 69 307

1990 88 365 Under 88 259

1991 107 365 Under 107 191

1992 126 365 Under 126 133

1993 142 365 Under 142 75

(ii) Notwithstanding the chart contained in

subparagraph (i), if any such licensed corporation

schedules 69 or more racing days in calendar year 1989,

it may, upon approval of the appropriate commission,

establish nonprimary locations within its primary market

area for that calendar year.

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

race meetings at a primary racetrack location at which

more than one license is so authorized may be granted up

to two nonprimary locations by the appropriate

commission, up to a maximum of four per primary racetrack

location. The licensed corporation authorized to hold

race meetings at a primary racetrack location at which

there is only one such licensed corporation so authorized

may be granted up to three nonprimary locations.

(ii) In addition to the nonprimary locations

20150SB0352PN1436 - 52 -

authorized by subparagraph (i), during each of the

calendar years 1989 and 1990, the appropriate commission

may approve no more than one additional nonprimary

location per primary racetrack location, for one licensed

corporation authorized to conduct racing at the primary

racetrack location.

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

the further approval of any nonprimary locations. The

State Harness Racing Commission and the State Horse

Racing Commission shall not have the authority to approve

any greater number of nonprimary locations after December

31, 1990, unless further authorized by the General

Assembly.

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

Racing Commission and the State Horse Racing Commission

to annually report to the General Assembly on the effect

of nonprimary locations on such factors as the local

economy, the public interest and the integrity of live

racing, and make suggestions and recommendations.

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

locations pursuant to this act shall be included in

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

these races shall be computed in the amount of money

wagered each racing day for purposes of taxation under

section 222. The licensed corporation conducting the race

meeting and maintaining the pari-mutuel pools shall

maintain accurate records of the amount wagered in each

pool from every primary and nonprimary location.

(ii) The retained moneys as provided for in section

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

20150SB0352PN1436 - 53 -

mutuel wagering is being conducted. If wagering has taken

place at a nonprimary location where the wagering is

conducted by a licensed corporation other than the

licensed corporation conducting the race meeting, the

licensed corporation conducting the race meeting shall

retain any moneys to which it is entitled by agreement

between such licensed corporations and shall pay over the

balance of the retained moneys to the licensed

corporation conducting the wagering at the nonprimary

location.

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

meeting on which pari-mutuel wagering is conducted at one

or more nonprimary locations shall distribute to the

horseman's organization representing a majority of owners

and trainers at its racetrack, or in accordance with the

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

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

the daily gross wagering handle on such races at a

nonprimary location: Provided, however, That when the

gross wagering handle on such races at any such

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

the above-referenced percentage shall be not less than

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

any such nonprimary location on a given day is between

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

percentage shall be not less than 4.75%: And provided

further, That whenever a nonprimary location is within

the primary market area of a licensed corporation other

than the licensed corporation conducting such races, the

applicable percentage shall be distributed one-half to

20150SB0352PN1436 - 54 -

the horseman's organization representing a majority of

owners and trainers at the racetrack, or in accordance

with the practice of the parties, where the race meeting

is being conducted to be used for the payment of purses

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

organization, or in accordance with the practice of the

parties, at the racetrack within the primary market area

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

Nothing in this subparagraph shall prevent a licensed

corporation from agreeing to distribute amounts greater

than the percentages set forth in this subparagraph.

However, if no alternative agreement has been reached,

the total percentage paid for purses under this

subparagraph shall be in accordance with the minimum

percentages set forth in this subparagraph.

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

provision in this act to the contrary, a nonprimary

location may be established within the primary market

area of a racetrack by agreement between the licensed

corporation and the horseman's organization representing

a majority of the owners and trainers at that racetrack

specifying the total percentage of handle wagered at such

nonprimary location to be distributed to that horseman's

organization, or in accordance with the practice of the

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

racetrack. If no such agreement is reached covering such

locations, the total percentage to be paid for purses

pursuant to this subparagraph shall be the same as that

applied to on-track wagering at the racetrack located

within the primary market area.

20150SB0352PN1436 - 55 -

(10) The provisions of section 234 relating to the

required number of racing days apply to this subsection.

However, a horseman's organization representing a majority of

owners and trainers at a racetrack may consent to waiving or

modifying the provisions as pertaining to the required number

of racing days scheduled by a licensed corporation at that

racetrack.

Section 218-A. Wagering at nonprimary locations.

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

contrary, licensed corporations shall not be authorized to

provide live telecasts of races to any locations open to the

public which are not primary to or contiguous with the licensed

corporation's racetrack and at which telephone account wagering

is also conducted and shall not be permitted to establish or

utilize master accounts or transfer accounts for telephone

account wagering or to accept credit or debit card telephone

account wagers or any other form of electronic signal

transmissions unless:

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

activities are conducted pursuant to regulations adopted by

the appropriate racing commission and approved pursuant to

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

"Regulatory Review Act"; or

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

are limited to areas, accounts and credit arrangements for

which applications are submitted to the appropriate

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

approved by the respective commission after appropriate

investigation and review.

(b) Regulations authorizing activities subject to the

20150SB0352PN1436 - 56 -

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

Notice Of Proposed Rulemaking until completion of the evaluation

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

construed to expand or enlarge any regulatory authority

otherwise conferred upon the respective commissions by this act.

the use of telephone account wagering, including the use of

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

other form of electronic signal transmission and live

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

or contiguous with a racetrack. The evaluation shall consider

whether such activities are in the public interest and are

beneficial to racing and shall recommend, if such activities are

deemed desirable by the commissions, appropriate rules and

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

licensed corporation shall not be permitted to conduct pari-

mutuel wagering at any location which is within the primary

market area of another licensed corporation, as defined in

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

recommend whether any enlargement or modification to the laws

regulating such activities is necessary or desirable. In

performing the evaluation, the commissions shall study in detail

experimental activities authorized by the commissions, including

an analysis of the impact of conducting such activities at each

experimental site approved by the commissions. The evaluation is

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

commissions' report being forwarded, within two weeks of that

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

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

Government Committee and the Chairman of the State Government

20150SB0352PN1436 - 57 -

Committee of the House of Representatives. The evaluation shall

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

the following matters:

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

account wagering in coordination with live telecasting to

public locations and the utilization of transfer accounts,

master accounts, credit or debit cards or other forms of

electronic signal transmissions for pari-mutuel wagering at

such locations.

(2) In situations where such activities occur at

premises licensed by the Liquor Control Board to serve

alcoholic beverages, whether such activities violate any

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

as the "Liquor Code."

(3) The financial viability of live telecasting to

public locations, together with the use of telephone account

wagering, transfer accounts, electronic signal transmissions,

or credit or debit card wagering, including the benefits or

disadvantages for the commissions, the licensed racing

corporation, horsemen and the general public.

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

impact of such wagering activities at public locations.

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

regulate and control such wagering at public locations in

order to protect the public and the integrity of the racing

industry.

(6) The ability of the commissions to investigate the

background of individuals owning or having an interest in

premises upon which such wagering takes place.

(7) Patron betting behavior and satisfaction or abuse of

20150SB0352PN1436 - 58 -

telephone account wagering, transfer accounts, credit or

debit cards or other forms of electronic signal transmissions

for the purpose of pari-mutuel wagering.

(8) What types of promotional activities have taken

place by the racing corporation or particular wagering sites

to encourage such wagering and what types of promotional

activities are proper and appropriate.

(9) What types of reporting procedures and records have

been and should be required from the licensed racing

corporation and individual wagering sites so as to assure all

revenues are accounted for and winners names are filed with

the proper taxing authorities.

(10) What minimum requirements with regard to physical

structures, facilities, equipment, security and public health

and safety are necessary and appropriate for locations at

which such wagering occurs.

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

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

commercial establishments, whether open to the public at large

or any segment of the public.

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

Every corporation that conducts a horse race meeting at which

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

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

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

Revenue or its authorized representative shall have access to

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

ascertaining whether the proper amount due to the State is being

paid by the licensed corporation.

Section 220. Filing of certain agreements with the commissions.

20150SB0352PN1436 - 59 -

Every corporation licensed to conduct horse race meetings at

which pari-mutuel wagering is permitted shall promptly after

entering any lease agreement concerning any concession, labor

management relation, hiring of designated classes of officers,

employees or contractors specified by the commissions or any

such other contract or agreement as the commissions may

prescribe, file with the appropriate commission a true and

correct copy, or an accurate summary, if oral.

Section 221. Retention percentages for pari-mutuel pools.

(a) Every licensed corporation shall distribute the moneys

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

the following requirements:

(1) all tickets shall be presented for payment before

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

their purchase; and

(2) seventeen percent of the moneys plus the breakage

from regular wagering pools shall be retained by the licensed

corporations for further distribution under section 222; or

(3) nineteen percent of the moneys plus the breakage

from regular wagering pools from licensed corporations whose

total deposits in all pari-mutuel pools averaged less than

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

same facility; or

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

the exacta, daily double, quinella and other wagering pools

involving two horses each racing day shall be retained by the

licensed corporations for further distribution under section

222; or

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

the breakage from the trifecta or other wagering pools

20150SB0352PN1436 - 60 -

involving more than two horses in one or more races each

racing day shall be retained by the licensed corporations for

further distribution under section 222; and

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

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

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

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

wagering pools under paragraph (5) upon approval from the

appropriate commission; and

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

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

paragraph (5) upon approval from the appropriate commission;

and

(8) all moneys remaining in the wagering pools described

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

distributed to the holders of winning tickets.

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

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

sum equal to the next lowest multiple of ten.

provisions for minus-pools relating to the retention

requirements under this section.

Section 222. Distribution of moneys retained from pari-mutuel

pools; taxation.

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

licensed corporations that conduct harness race meetings shall

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

State Racing Fund. All licensed corporations that conduct

thoroughbred horse race meetings shall pay a tax through the

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

20150SB0352PN1436 - 61 -

tax imposed on all licensed corporations shall be a percentage

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

moneys retained under section 221.

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

licensed to conduct harness horse race meetings or thoroughbred

horse race meetings which annually conduct at least 100 days of

racing, or when two licensed corporations conduct their race

meetings at the same facility and between them annually conduct

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

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

for credit to the State Horse Racing Fund the following taxes

for the time periods stated:

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

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

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

subsection (a.4).

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

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

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

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

subsection shall not apply if races are not conducted because of

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

dispute.

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

considered conducted after the appropriate commission has

certified the allocation of racing days to the Secretary of the

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

even if the racing day is subsequently cancelled by the licensed

corporation for reasons beyond its control.

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

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

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

of moneys retained under section 221, through the Department of

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

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

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

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

(3).

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

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

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

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

racing corporation which conducted, at any time within the

immediately preceding five years, any horse or harness race

meetings at the racetrack enclosure for which the license is

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

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

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

corporation licensed at any time within the immediately

preceding five years to conduct horse or harness race meetings

at the racetrack enclosure for which the license is sought.

(b) The commissions shall distribute moneys from the State

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

following manner:

(1) The salaries of employees of the commission employed

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

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

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

commission.

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

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Department of Revenue when used in collecting taxes and

penalties imposed by this act.

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

Agriculture incurred in administering their duties under this

act.

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

in administering this act, net of any income earned or

received by the commission.

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

(i) An amount equivalent to one percent of the

amount wagered each racing day at thoroughbred horse race

meetings shall be paid by the Horse Racing Commission

from the State Racing Fund through the Department of

Revenue for credit to the Pennsylvania Breeding Fund.

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

percent of the amount wagered each racing day at harness

horse race meetings shall be paid by the Harness Racing

Commission from the State Racing Fund through the

Department of Revenue for credit to the Pennsylvania Sire

Stakes Fund, beginning on July 1, 1983.

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

be paid into the General Fund.

corporations that conduct thoroughbred horse race meetings shall

be distributed in the following manner:

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

the licensed corporations.

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

retained by the licensed corporations to be used solely for

purses to the horsemen.

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

the Department of Revenue for credit to the State Horse

Racing Fund.

(d) All breakage retained under section 221 by licensed

corporations that conduct harness horse race meetings shall be

distributed in the following manner:

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

the licensed corporations.

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

by the licensed corporations of which one-half of this

breakage shall be used solely by the licensed corporations

for claiming and nonclaiming races where entry is restricted

to Pennsylvania-sired horses in the following manner:

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

of the horses programmed to start shall be Pennsylvania-

sired horses. If at least five of the horses programmed

to start are not Pennsylvania-sired horses, then the

licensed corporation conducting the meet shall cancel the

race.

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

seven of the horses programmed to start shall be

Pennsylvania-sired horses. If at least seven of the

horses programmed to start are not Pennsylvania-sired

horses, then the licensed corporation conducting the meet

shall cancel the race.

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

Pennsylvania-sired horses shall be allowed to start in

these races. If all the positions are not filled by

Pennsylvania-sired horses in these races, then the

licensed corporation conducting the meet shall cancel the

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race.

All breakage moneys due licensed corporations for the purses for

claiming and nonclaiming races under this paragraph but not

expended as a result of a race cancellation shall be carried

forward to the next succeeding meet by the licensed corporations

to be used for claiming and nonclaiming races which restrict

entry to Pennsylvania-sired horses under the provisions of this

paragraph.

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

wagered at each racing day at thoroughbred and harness horse

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

paid through the Department of Revenue for credit to the State

Racing Fund.

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

heretofore distributed shall be kept by the licensed

corporations for their use.

Section 223. Pennsylvania Breeding Fund.

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

State Racing Fund to be known as the Pennsylvania Breeding Fund

which shall consist of the money appropriated under the

provisions of section 222 and which shall be administered by the

State Horse Racing Commission.

(b) After the deduction of expenses related to the

administration and development of the Pennsylvania Breeding Fund

program incurred by the Pennsylvania Horse Breeders'

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

regulation, provide for awards as follows:

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

registered Pennsylvania-bred thoroughbred horse sired by a

registered Pennsylvania sire at the time of conception of the

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registered Pennsylvania-bred thoroughbred horse, or an award

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

bred thoroughbred horse sired by a nonregistered sire, which

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

licensed corporation under this act shall be paid to the

breeder of said registered Pennsylvania-bred thoroughbred

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

of the total annual fund money.

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

Pennsylvania-bred thoroughbred horse which finishes first,

second or third in any race conducted by a licensed

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

registered Pennsylvania sire which regularly stood in

Pennsylvania at the time of conception of said Pennsylvania-

bred thoroughbred horse. A single award under this paragraph

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

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

registered Pennsylvania-bred thoroughbred horse which

finishes first in any race conducted by a licensed

corporation under this act not restricting entry to

registered Pennsylvania-bred thoroughbred horses shall be

paid to the licensed owner of said registered Pennsylvania-

bred thoroughbred horse at the time of winning. A single

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

annual fund money.

moneys remaining each year after the deduction of expenses

related to the administration and development of the

Pennsylvania Breeding Fund program and the payment of breeder,

stallion and owner awards, shall be divided among the licensed

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corporations that conduct thoroughbred horse race meetings in

direct proportion to the rate by which each licensed corporation

generated the fund moneys during the previous year to be used

solely for purses for Pennsylvania Breeding Fund stakes races

which restrict entry to registered Pennsylvania-bred

thoroughbred horses.

(d) The fund moneys remaining following disbursements as

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

shall be divided among the licensed corporations that conduct

thoroughbred horse race meetings in direct proportion to the

rate by which each licensed corporation generated the fund

moneys during the previous year to be used for purses as

follows:

(1) Claiming and nonclaiming Pennsylvania Breeding Fund

races which restrict entry to registered Pennsylvania-bred

thoroughbred horses.

(2) Claiming and nonclaiming Pennsylvania Breeding Fund

races which prefer registered Pennsylvania-bred thoroughbred

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

registered Pennsylvania-bred horses pass the entry box, the

race shall be considered closed to horses other than

registered Pennsylvania-bred thoroughbred horses.

(e) Those Pennsylvania Breeding Fund moneys due licensed

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

expended during the calendar year may be carried forth in the

fund on the account of said licensed corporations to be expended

during the succeeding year in addition to said corporations'

fund moneys annually due them for purses.

(f) The Pennsylvania Breeding Fund Advisory Committee, under

the jurisdiction of the State Horse Racing Commission, is hereby

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established and shall be part of the Pennsylvania State Horse

Racing Commission. The commission shall consist of five members,

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

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

consist of two members of the Pennsylvania Horse Breeders'

Association, one member from the licensed corporations, one

member from the association representing horsemen racing in

Pennsylvania and one member of the commission. If any member

other than the commission member has not been recommended by

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

for the organization failing to so recommend a member of the

committee. The committee shall assist and advise the commission

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

administering the fund. The members of the committee shall

receive no compensation for their services as members.

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

Pennsylvania Horse Breeders' Association as the sole responsible

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

Pennsylvania Horse Breeders' Association shall advise the

commission when called upon and shall determine the

qualifications for Pennsylvania-bred thoroughbred horses and

Pennsylvania sires. Its registration and record facts are hereby

declared as official Pennsylvania records. At the close of each

calendar year, the Pennsylvania Horse Breeders' Association,

through the Pennsylvania Breeding Fund Advisory Committee, shall

submit to the commission for its approval an itemized budget of

projected expenses for the ensuing year relating to the

administration and development of the Pennsylvania Breeding Fund

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

shall reimburse from the fund the Pennsylvania Horse Breeders'

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Association for those expenses actually incurred in the

administration and development of the Breeding Fund program.

Section 224. Pennsylvania Sire Stakes Fund.

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

State Racing Fund to be known as the Pennsylvania Sire Stakes

Fund which shall consist of the money appropriated under the

provisions of section 222 and which shall be administered by the

State Harness Racing Commission.

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

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

calendar year in which this subsection is enacted shall be

distributed to licensed corporations that conduct harness horse

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

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

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

year of the enactment of this subsection, together with the

interest earned on that money, shall be distributed to licensed

corporations that conduct harness horse race meetings to be used

in the next succeeding calendar year following the next

succeeding calendar year as purse money for Pennsylvania-sired

horses. After deduction of sufficient funds to cover the State

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

a smaller percentage is necessary in order to comply with the

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

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

calendar year shall be distributed to licensed corporations that

conduct harness horse race meetings to be used as purse money

for Pennsylvania-sired horses. The State Harness Racing

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

40% of the total amount to be distributed to licensed

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corporations in a calendar year for use for a series of

championship final races at the race tracks of licensed

corporations that conduct harness horse race meetings. The State

Harness Racing Commission shall allocate the moneys to these

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

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

State Harness Racing Commission shall determine conditions

establishing eligibility to these final events. No pari-mutuel

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

final races in any calendar year. The State Harness Racing

Commission shall schedule these final events so as to evenly

alternate classes at each race track each year. After the

allocation for the championship final races has been determined,

the remaining funds to be distributed to licensed corporations

that conduct harness horse race meetings shall be divided

equally among the licensed corporations. Each licensed

corporation shall divide the funds received equally for each of:

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

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

fillies; and

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

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

fillies.

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

entry fees or other funds available.

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

which were sired by a standardbred stallion regularly standing

in Pennsylvania and each race shall be designated a Pennsylvania

sire stakes race. The State Harness Racing Commission shall make

20150SB0352PN1436 - 71 -

the provisions and regulations as it shall deem necessary for

the proper administration of the entry restriction.

(e) The remaining moneys in the Pennsylvania Sire Stakes

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

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

harness racing commission regulations shall be divided equally

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

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

authorized by the State Harness Racing Commission, provided that

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

authorized unless, after a date established by the commission,

all five of the events have not been allocated, conducting

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

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

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

be divided equally among those agricultural fairs and one- or

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

day events receiving the funds shall divide the total amount

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

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

additional purse funds. Only races to which entry is restricted

to Pennsylvania-sired horses shall be eligible. The State

Harness Racing Commission shall make the provisions and

regulations as it shall deem necessary for the proper

administration of all racing provided for in this subsection,

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

or two-day events.

(f) The fund moneys remaining following disbursements as

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

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

20150SB0352PN1436 - 72 -

corporations that conduct harness horse race meetings under this

act in direct proportion to the rate by which each licensed

corporation generated the fund moneys during the previous year.

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

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

shall be carded per week on the condition sheet for overnight

claiming and nonclaiming Pennsylvania Fund races which

restrict entry to registered Pennsylvania-sired or wholly

Pennsylvania-owned harness horses.

(2) Claiming and nonclaiming Pennsylvania Fund races

which prefer registered Pennsylvania-sired harness horses as

starters. In these races, should seven or more registered

Pennsylvania-sired harness horses pass the entry box, the

race shall be considered closed to horses other than

registered Pennsylvania-sired harness horses.

Section 225.1. Fair Fund proceeds.

The Secretary of Agriculture shall distribute certain moneys

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

reimbursement for each county agricultural society and each

independent agricultural society conducting harness horse racing

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

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

during their annual fair as purse money for harness horse

racing, track and stable maintenance, starting gate rental and

the cost of all harness horse racing officials required during

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

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

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

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

purposes herein before referenced, or otherwise said allotment

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shall be retained in the fund. The State Harness Racing

Commission shall cause to be carried out as its responsibility a

yearly inspection of each track facility and shall advise each

operating fair of necessary track maintenance which is necessary

to insure adequate racing surface during the course of scheduled

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

that the fair society or event sponsor is not adequately

financing track maintenance through its permissible

reimbursement under this paragraph, the commission shall so

surcharge the Fair Fund account of said fair society or event

sponsor to effectuate said remediation.

Section 226. Hearing of refusal or revocation of license.

If the commissions refuse to grant any license applied for

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

the applicant or licensee may demand, within ten days after

notice of the decision of the appropriate commission, a hearing

before the appropriate commission. The commission shall give

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

time the commission will hear the applicant or licensee. Pending

the hearing and final determination, the action of the

commissions in refusing to grant or in revoking or suspending a

license shall remain in full force. The commissions may continue

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

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

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

commissions shall not be bound by technical rules of evidence,

but all evidence offered before the commissions shall be reduced

to writing. All evidence, exhibits and findings of the

commissions shall be permanently preserved and shall constitute

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

20150SB0352PN1436 - 74 -

the commissions shall have the power to administer oaths and

examine witnesses, and may issue subpoenas to compel attendance

of witnesses and the production of all material and relevant

reports, books, papers, documents, correspondence and other

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

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

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

the hearing, the appropriate commission shall make a final order

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

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

Section 227. Approval of the racing facility.

The commissions shall not grant to a corporation formed under

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

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

submitted to the appropriate commission a statement of the

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

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

other structures in a form as the appropriate commission may

prescribe. All plans shall be approved by the appropriate

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

mutuel horse race meeting.

Section 228. Prohibition of wagering by certain officials,

employees and minors.

No commissioner, executive secretary, deputy, officer,

representative, employee or counsel of the commission shall

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

which pari-mutuel wagering is conducted by any licensed

corporation of the commissions. No licensed corporation shall

permit any person who is actually and apparently under 18 years

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

20150SB0352PN1436 - 75 -

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

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

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

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

legally employed, from being upon the race track premises for

the sole purpose of engaging in the performance of their duties

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

enforcement of this section.

Section 229. State horse racing veterinarians and State

stewards.

(a) The State Horse Racing Commission shall appoint and

employ licensed veterinarians and stewards to serve as the horse

racing veterinarians and State stewards for horse racing,

respectively, at each meeting conducted by a corporation

licensed by the State Horse Racing Commission. The State Horse

Racing Commission shall have the authority to employ other

individuals as shall be necessary to carry out the

responsibilities of this section.

(b) The costs and compensation of the horse racing

veterinarians, State stewards and other individuals employed

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

description and professional criteria for stewards to assure

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

Section 230. State harness racing veterinarians.

(a) The State Harness Racing Commission shall appoint and

employ licensed veterinarians to serve as the harness racing

veterinarians for harness racing at each meeting conducted by a

corporation licensed by the State Harness Racing Commission. The

State Harness Racing Commission shall have the authority to

20150SB0352PN1436 - 76 -

employ other individuals as shall be necessary to carry out the

responsibilities under this section.

(b) The costs and compensation of the harness racing

veterinarians and other individuals employed to carry out the

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

Harness Racing Commission.

Section 231. Free passes, cards or badges.

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

cards or badges without admission tax, except to persons

hereafter described: officers, employees and shareholders of the

corporation conducting the race meeting; members, officers and

employees of the commissions; members of horse racing

associations of other states and foreign countries; public

officers engaged in the performance of their duties; persons

employed and accredited by the press to attend such meeting;

owners, stable managers, trainers, jockeys, concessionaries and

other persons whose actual duties require their presence at the

race tracks.

(b) The commissions may allow a licensed corporation to

issue free passes, cards or badges for special promotional

programs and seasonal discount ticket programs, so long as the

corporation has obtained approval from the appropriate

commission. The admissions taxes under section 208 shall be

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

licensed corporation.

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

all persons, except persons admitted under an approved special

promotional program or seasonal discount ticket program, to whom

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

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