Regular Session 2015-2016 Senate Bill 1229 P.N. 2219

HOUSE AMENDED

PRIOR PRINTER'S NOS. 1757, 1763, 1983,

1763, 2020

PRINTER'S NO. 2219

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1229

Session of

2015

INTRODUCED BY VOGEL, RAFFERTY AND HUGHES, MAY 6, 2016

AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,

OCTOBER 26, 2016

AN ACT

Amending the act of April 9, 1929 (P.L.177, No.175), entitled

"An act providing for and reorganizing the conduct of the

executive and administrative work of the Commonwealth by the

Executive Department thereof and the administrative

departments, boards, commissions, and officers thereof,

including the boards of trustees of State Normal Schools, or

Teachers Colleges; abolishing, creating, reorganizing or

authorizing the reorganization of certain administrative

departments, boards, and commissions; defining the powers and

duties of the Governor and other executive and administrative

officers, and of the several administrative departments,

boards, commissions, and officers; fixing the salaries of the

Governor, Lieutenant Governor, and certain other executive

and administrative officers; providing for the appointment of

certain administrative officers, and of all deputies and

other assistants and employes in certain departments, boards,

and commissions; 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; and

prescribing the manner in which the number and compensation

of the deputies and all other assistants and employes of

certain departments, boards and commissions shall be

determined," in powers and duties of the Department of

Environmental Resources, its officers and departmental and

advisory boards and commissions, providing for production

reports, for restoration of well site, for water standards

and for solar photovoltaic technology; in powers and duties

of the Department of Corrections, providing for notice of

public hearing for State correctional institution closure;

and, in horse race industry reform, further providing for

Pennsylvania Breeding Fund.

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AMENDING TITLE 3 (AGRICULTURE) OF THE PENNSYLVANIA CONSOLIDATED

STATUTES, MAKING EDITORIAL CHANGES; CONSOLIDATING AN ARTICLE

OF THE ADMINISTRATIVE CODE OF 1929 RELATING TO RACE HORSE

INDUSTRY REFORM; FURTHER PROVIDING FOR PENNSYLVANIA BREEDING

FUND; AND MAKING A RELATED REPEAL.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of April 9, 1929 (P.L.177, No.175), known

as The Administrative Code of 1929, is amended by adding

sections to read:

Section 1938-A. Production Reports.-- The production reports

required under the act of October 22, 2014 (P.L.2853, No.173),

known as the Unconventional Well Report Act, which are submitted

on February 15 and August 15 of each year shall include

information on the amount and type of waste produced and the

method of waste disposal or reuse for the preceding six months.

The Department of Environmental Protection may not require more

frequent reporting than what is required under this section.

Waste information submitted to the Department of Environmental

Protection in accordance with this section shall be deemed to

satisfy the residual waste biennial reporting requirements under

25 Pa. Code § 287.52 (relating to biennial report).

Section 1939-A. Restoration of Well Site.--If multiple wells

are drilled or permitted to be drilled on a single well site,

the restoration provisions of 58 Pa.C.S. § 3216(c) (re lating to

well site restoration) shall apply. The Department of

Environmental Protection shall ensure that the restoration

provisions are complied with within 24 months after completion

of all wells drilled on the well site or within 24 months after

the expiration of all existing well permits on the well site,

whichever is later.

Section 1940-A. Water Standards.--The Department of

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Environmental Protection may not prescribe standards or

requirements for the storage of surface water, fresh groundwater

or water obtained from an approved public water purveyor for use

in oil and gas development that are more stringent than those

imposed for the storage of similar freshwater sources used for

purposes other than oil and gas development.

Section 1941-A. Solar Photovoltaic Technology.--(a)

Notwithstanding the provisions of section 4 of the act of

November 30, 2004 (P.L.1672, No.213), known as the "Alternative

Energy Portfolio Standards Act," to meet the requirements of

section 4 of the "Alternative Energy Portfolio Standards Act,"

all solar photovoltaic technology registered in accordance with

the "Alternative Energy Portfolio Standards Act" shall directly

deliver the electricity it generates to the distribution system

operated by an electric distribution company operating within

this Commonwealth and currently obligated to meet the compliance

requirements contained in the "Alternative Energy Portfolio

Standards Act."

(b) For purposes of this section, "electric distribution

company" shall have the same meaning given to it under 66

Pa.C.S. Ch. 28 (relating to restructuring of electric utility

industry).

Section 915-B. Notice of Public Hearing for State

Correctional Institution Closure.-- During the fiscal year 2016-

2017, the Department of Corrections may not close a State

correctional institution as defined in 61 Pa.C.S. § 102

(relating to definitions), unless the Department of Corrections

conducts a public hearing. The Department of Corrections shall

provide notice thirty (30) days before the public hearing in the

Pennsylvania Bulletin and in at least two local newspapers.

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Section 2. Section 2836-D of the act, added February 23,

2016 (P.L.15, No.7), is amended to read:

Section 2836-D. Pennsylvania Breeding Fund.

[(a) Establishment.--There is hereby created a restricted

account in the State Racing Fund to be known as the Pennsylvania

Breeding Fund which shall consist of the money deposited under

section 2834-D and any provision of 4 Pa.C.S. Pt. II (relating

to gaming) and which shall be distributed by the commission.

(b) Awards from the Pennsylvania Breeding Fund.--The

commission shall distribute money from the Pennsylvania Breeding

Fund as follows:

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

registered thoroughbred racing horse sired in this

Commonwealth by a registered Pennsylvania sire at the time of

conception of the registered thoroughbred racing horse sired

in this Commonwealth, or an award of 20% of the purse earned

by every registered thoroughbred racing horse sired in this

Commonwealth sired by a nonregistered sire, which finishes

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

racing entity under this article shall be paid to the breeder

of said registered thoroughbred racing horse sired in this

Commonwealth. A single award under this paragraph may not

exceed 1% of the total annual fund money.

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

registered thoroughbred racing horse sired in this

Commonwealth which finishes first, second or third in any

race conducted by a licensed racing entity under this article

shall be paid to the owner of the registered Pennsylvania

sire which regularly stood in Pennsylvania at the time of

conception of the thoroughbred racing horse sired in this

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Commonwealth. A single award under this paragraph may not

exceed 0.5% of the total annual fund money.

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

registered thoroughbred racing horse sired in this

Commonwealth which finishes first in any race conducted by a

licensed racing entity under this article not restricting

entry to registered thoroughbreds racing horse sired in this

Commonwealth shall be paid to the licensed owner of said

registered thoroughbred horse sired in this Commonwealth at

the time of winning. A single award under this paragraph may

not exceed 0.5% of the total annual fund money.

of the total of the estimated Pennsylvania Breeding Fund money

remaining each year after the deduction of expenses related to

the administration and development of the Pennsylvania Breeding

Fund program and the payment of breeder, stallion and owner

awards, shall be divided among the licensed racing entities that

conduct thoroughbred horse race meetings in direct proportion to

the rate by which each licensed racing entity generated the fund

money during the previous year to be used solely for purses for

Pennsylvania Breeding Fund stakes races which restrict entry to

registered thoroughbred racing horse sired in this Commonwealth.

(d) Remaining funds.--The Pennsylvania Breeding Fund money

remaining following disbursements as directed in subsections (b)

(1), (2) and (3) and (c) shall be divided among the licensed

racing entities that conduct thoroughbred horse race meetings in

direct proportion to the rate by which each licensed racing

entity generated the fund money during the previous year to be

used for purses as follows:

(1) Claiming and nonclaiming Pennsylvania Breeding Fund

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races which restrict entry to registered thoroughbred racing

horses sired in this Commonwealth.

(2) Claiming and nonclaiming Pennsylvania Breeding Fund

races which prefer registered thoroughbred racing horses

sired in this Commonwealth as starters. In these races,

should eight or more registered thoroughbred racing horses

sired in this Commonwealth pass the entry box, the race shall

be considered closed to horses other than registered

thoroughbred racing horses sired in this Commonwealth.

(e) Funds not expended.--Pennsylvania Breeding Fund money

due to licensed racing entities, as outlined in subsections (c)

and (d), but not expended during the calendar year may be

carried forth in the fund on the accounts of the licensed racing

entities to be expended during the succeeding year in addition

to the racing entities' fund money annually due to them for

purses.

(e.1) Committee.--There is hereby established the

Pennsylvania Breeding Fund Advisory Committee within the

commission. The committee shall consist of five individuals, who

are residents of this Commonwealth, to be appointed by the

commission by June 1 of each year based on the recommendation of

the groups identified in this subsection. If a member other than

a commissioner has not been recommended by June 1 of each year,

the commission shall make an appointment for the organization

failing to so recommend a member of the committee. The committee

shall assist and advise the commission on the regulation of

horse racing breeding issues under this article but shall have

no power in administering the fund. Members of the advisory

committee shall not receive compensation or reimbursements for

participation on the committee. The committee shall consist of

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the following members:

(1) Two members representing the Pennsylvania Horse

Breeders' Association.

(2) One member representing licensed racing entities.

(3) One member representing the association representing

horsemen racing in Pennsylvania.

(4) One member of the commission.

(f) Pennsylvania Horse Breeders' Association.--The

commission shall contract with the Pennsylvania Horse Breeders'

Association as the organization responsible for the registration

and records of thoroughbred racing horses sired in this

Commonwealth. The Pennsylvania Horse Breeders' Association shall

advise the commission when called upon and shall determine the

qualifications for thoroughbred racing horses sired in this

Commonwealth and Pennsylvania sires. Registration and records of

the association shall be official records of the Commonwealth

and shall be subject to the act of February 14, 2008 (P.L.6,

No.3), known as the Right-to-Know Law. At the close of each

calendar year, the Pennsylvania Horse Breeders' Association

shall submit to the commission for its approval an itemized

budget of projected expenses for the ensuing year relating to

the administration and development of the Pennsylvania Breeding

Fund Program. The commission shall reimburse the Pennsylvania

Horse Breeders' Association for those expenses actually incurred

in the administration and development of the Pennsylvania

Breeding Fund Program from the Pennsylvania Breeding Fund, no

more than on a quarterly basis.] (a) Establishment.--There is

created a restricted account in the State Racing Fund to be

known as the Pennsylvania Breeding Fund which shall consist of

the money deposited under section 2834-D and any provision of 4

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Pa.C.S. Pt. II (relating to gaming) and which shall be

distributed by the commission.

(b) Awards from the Pennsylvania Breeding Fund.--The

commission shall distribute money from the Pennsylvania Breeding

Fund as follows:

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

registered Pennsylvania-bred thoroughbred racing horse sired

by a registered Pennsylvania sire at the time of conception

of the registered Pennsylvania-bred thoroughbred racing

horse, or an award of 20% of the purse earned by every

registered Pennsylvania-bred thoroughbred racing horse sired

by a nonregistered sire, which finishes first, second or

third in any race conducted by a licensed racing entity under

this article shall be paid to the breeder of said registered

Pennsylvania-bred thoroughbred racing 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

registered Pennsylvania-bred thoroughbred racing horse which

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

licensed racing entity under this article shall be paid to

the owner of the registered Pennsylvania sire which regularly

stood in Pennsylvania at the time of conception of the

Pennsylvania-bred thoroughbred racing horse. A single award

under this paragraph may not exceed 0.5% of the total annual

fund money.

of the total of the estimated Pennsylvania Breeding Fund money

remaining each year after the deduction of expenses related to

the administration and development of the Pennsylvania Breeding

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Fund program and the payment of breeder and stallion awards,

shall be divided among the licensed racing entities that conduct

thoroughbred horse race meetings in direct proportion to the

rate by which each licensed racing entity generated the fund

money during the previous year to be used solely for purses for

Pennsylvania Breeding Fund stakes races which restrict entry to

a registered Pennsylvania-bred thoroughbred racing horse.

(d) Remaining funds.--The Pennsylvania Breeding Fund money

remaining following disbursements as directed in subsections (b)

(1) and (2) and (c) shall be divided among the licensed racing

entities that conduct thoroughbred horse race meetings in direct

proportion to the rate by which each licensed racing entity

generated the fund money during the previous year to be used for

purses as follows:

(1) Claiming and nonclaiming Pennsylvania Breeding Fund

races which restrict entry to registered Pennsylvania-bred

thoroughbred racing horses.

(2) Claiming and nonclaiming Pennsylvania Breeding Fund

races which prefer registered Pennsylvania-bred thoroughbred

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

more registered Pennsylvania-bred thoroughbred racing horses

pass the entry box, the race shall be considered closed to

horses other than registered Pennsylvania-bred thoroughbred

racing horses.

(e) Funds not expended.--Pennsylvania Breeding Fund money

due to licensed racing entities, as outlined in subsections (c)

and (d), but not expended during the calendar year may be

carried forth in the fund on the accounts of the licensed racing

entities to be expended during the succeeding year in addition

to the licensed racing entities' fund money annually due to them

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for purses.

(e.1) Committee.--There is hereby established the

Pennsylvania Breeding Fund Advisory Committee within the

commission. The committee shall consist of five individuals, who

are residents of this Commonwealth, to be appointed by the

commission by June 1 of each year based on the recommendation of

the groups identified in this subsection. If a member other than

a commissioner has not been recommended by June 1 of each year,

the commission shall make an appointment for the organization

failing to so recommend a member of the committee. The committee

shall assist and advise the commission on the regulation of

horse racing breeding issues under this article but shall have

no power in administering the fund. Members of the advisory

committee shall not receive compensation or reimbursements for

participation on the committee. The committee shall consist of

the following members:

(1) Two members representing the Pennsylvania Horse

Breeders' Association.

(2) One member representing licensed racing entities.

(3) One member representing the association representing

horsemen racing in Pennsylvania.

(4) One member of the commission.

(f) Pennsylvania Horse Breeders' Association.--The

commission shall contract with the Pennsylvania Horse Breeders'

Association as the organization responsible for the registration

and records of Pennsylvania-bred thoroughbred racing horses. The

Pennsylvania Horse Breeders' Association shall advise the

commission when called upon and shall determine the

qualifications for Pennsylvania-bred thoroughbred racing horses

and Pennsylvania sires. Registration and records of the

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association shall be official records of the Commonwealth and

shall be subject to the act of February 14, 2008 (P.L.6, No.3),

known as the Right-to-Know Law. At the close of each calendar

year, the Pennsylvania Horse Breeders' Association shall submit

to the commission for its approval an itemized budget of

projected expenses for the ensuing year relating to the

administration and development of the Pennsylvania Breeding Fund

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

shall reimburse from the fund the Pennsylvania Horse Breeders'

Association for those expenses actually incurred in the

administration and development of the Pennsylvania Breeding Fund

Program.

(g) Adjustment of awards.--The following shall apply:

(1) Subject to paragraph (3), the commission may adjust

the awards under subsection (b) after:

(i) its review of the report issued under section

4.1 of the act of February 23, 2016 (P.L.15, No.7),

entitled "An act amending the act of April 9, 1929

(P.L.177, No.175), entitled 'An act providing for and

reorganizing the conduct of the executive and

administrative work of the Commonwealth by the Executive

Department thereof and the administrative departments,

boards, commissions, and officers thereof, including the

boards of trustees of State Normal Schools, or Teachers

Colleges; abolishing, creating, reorganizing or

authorizing the reorganization of certain administrative

departments, boards, and commissions; defining the powers

and duties of the Governor and other executive and

administrative officers, and of the several

administrative departments, boards, commissions, and

20160SB1229PN2219 - 11 -

officers; fixing the salaries of the Governor, Lieutenant

Governor, and certain other executive and administrative

officers; providing for the appointment of certain

administrative officers, and of all deputies and other

assistants and employes in certain departments, boards,

and commissions; and prescribing the manner in which the

number and compensation of the deputies and all other

assistants and employes of certain departments, boards

and commissions shall be determined,' in organization of

independent administrative boards and commissions,

providing for Pennsylvania Gaming Control Board; in

organization, further providing for advisory boards and

commissions; in Commonwealth agency fees, further

providing for distillery of historical significance

license fee reduction; providing for race horse industry

reform; conferring duties upon the Joint State Government

Commission; making editorial changes; and making related

repeals"; and

(ii) a hearing on the matter of the adjustment.

(2) The review and hearing process under this subsection

must be completed by December 31, 2017, with any adjustment

effective January 1, 2018.

(3) (i) With respect to an award under subsection (b)

(1), any adjustment regarding the a ward of the purse

earned by a racing horse sired by a registered

Pennsylvania sire may not be less than 30% and may not be

more than 50%.

(ii) Any adjustment regarding the award of the purse

earned by a racing horse sired by a nonregistered sire

may not be less than 20% and may not be more than 40%.

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(4) Any adjustment under this subsection may only occur

once under this subsection, unless another review process is

established by law.

Section 3. The addition of section 2836-D(b), (c) and (d) of

the act shall apply retroactively to February 23, 2016.

Section 4. This act shall take effect immediately.

SECTION 1. THE HEADING OF PART VIII OF TITLE 3 OF THE

PENNSYLVANIA CONSOLIDATED STATUTES IS RENUMBERED TO READ:

PART [VIII] C

MISCELLANEOUS PROVISIONS

SECTION 2. THE HEADING OF CHAPTER 81 OF TITLE 3 IS

RENUMBERED TO READ:

CHAPTER [81] 999

MISCELLANEOUS PROVISIONS

SECTION 3. SECTION 8101 OF TITLE 3 IS RENUMBERED TO READ:

§ [8101] 99901. (RESERVED).

SECTION 4. TITLE 3 IS AMENDED BY ADDING A PART TO READ:

PART VIII

HORSE RACING

CHAPTER

91. PRELIMINARY PROVISIONS (RESERVED)

93. RACE HORSE INDUSTRY REFORM

CHAPTER 91

PRELIMINARY PROVISIONS

(RESERVED)

CHAPTER 93

RACE HORSE INDUSTRY REFORM

SUBCHAPTER

A. PRELIMINARY PROVISIONS

B. RACING OVERSIGHT

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C. ADDITIONAL LICENSING REQUIREMENTS FOR LICENSED RACING

ENTITY, SECONDARY PARI-MUTUEL ORGANIZATION, TOTALISATOR

AND RACING VENDORS

D. COMPLIANCE

E. MEDICATION RULES AND ENFORCEMENT PROVISIONS

SUBCHAPTER A

PRELIMINARY PROVISIONS

SEC.

9301. DEFINITIONS.

§ 9301. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

"ACCOUNT." AN ACCOUNT FOR 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

CHAPTER. 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

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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,

INCLUDING THE VARIOUS BUILDINGS COMMONLY REFERRED TO AS THE

GRANDSTAND OR THE RACING SURFACE 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 10.

"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.

"COMMISSIONER." AN INDIVIDUAL APPOINTED TO AND SWORN IN AS A

MEMBER OF THE COMMISSION IN ACCORDANCE WITH SECTION 9311(B)

(RELATING TO STATE HORSE RACING COMMISSION).

"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, ELECTROMECHANICAL, COMPUTERIZED SYSTEM OR ANY OTHER

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FORM OF ELECTRONIC MEDIA APPROVED BY THE COMMISSION AND ACCEPTED

BY A SECONDARY PARI-MUTUEL ORGANIZATION OR A LICENSED RACING

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

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REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 457), OR

ANY SUCCESSOR PROVISION, DEFERRED COMPENSATION PLAN WHETHER

QUALIFIED OR NOT QUALIFIED UNDER THE INTERNAL REVENUE CODE OF

1986, OR ANY SUCCESSOR PROVISION OR OTHER RETIREMENT PLAN

THAT:

(I) IS NOT SELF-DIRECTED BY THE INDIVIDUAL.

(II) IS ADVISED BY AN INDEPENDENT INVESTMENT ADVISER

WHO HAS SOLE AUTHORITY TO MAKE INVESTMENT DECISIONS WITH

RESPECT TO CONTRIBUTIONS MADE BY THE INDIVIDUAL TO THESE

PLANS.

(2) A TUITION ACCOUNT PLAN ORGANIZED AND OPERATED UNDER

SECTION 529 OF THE INTERNAL REVENUE CODE OF 1986 THAT IS NOT

SELF-DIRECTED BY THE INDIVIDUAL.

(3) A MUTUAL FUND WHERE THE INTEREST OWNED BY THE MUTUAL

FUND IN A LICENSED RACING ENTITY DOES NOT CONSTITUTE A

CONTROLLING INTEREST AS DEFINED IN 4 PA.C.S. § 1103 (RELATING

TO DEFINITIONS).

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

DURING WHICH A LICENSED RACING ENTITY IS AUTHORIZED TO CONDUCT

LIVE RACING OR PARI-MUTUEL WAGERING AS APPROVED BY THE

COMMISSION.

"HORSE RACING." STANDARDBRED HORSE RACING AND THOROUGHBRED

HORSE RACING.

"HORSEMEN'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

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AGREEMENT TO CANCEL OR AMEND AMONG ALL PARTIES TO THE LETTER OF

CREDIT.

"LAND MILE." A UNIT OF DISTANCE EQUAL TO 1,609.3 METERS OR

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

"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

CHAPTER.

"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 UNDER THIS

CHAPTER OTHER THAN THE RACETRACK WHERE LIVE RACING IS CONDUCTED.

"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,

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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

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 RACING

ENTITY CONDUCTS THOROUGHBRED OR STANDARDBRED HORSE RACE MEETINGS

RESPECTIVELY WITH PARI-MUTUEL WAGERING.

"RACETRACK ENCLOSURE." FOR PURPOSES OF THIS CHAPTER, THE

TERM "RACETRACK ENCLOSURE," WITH RESPECT TO EACH LICENSED RACING

20160SB1229PN2219 - 19 -

ENTITY, SHALL BE DEEMED TO INCLUDE AT LEAST ONE PRIMARY

RACETRACK LOCATION AT WHICH HORSE RACE MEETINGS AUTHORIZED TO BE

HELD BY THE LICENSED RACING ENTITIES ARE CONDUCTED, INCLUDING

THE GRANDSTAND, FRONTSIDE AND BACKSIDE FACILITIES AND ALL

PRIMARY, NONPRIMARY, CONTIGUOUS AND NONCONTIGUOUS LOCATIONS OF

THE LICENSED RACING ENTITY WHICH ARE SPECIFICALLY APPROVED BY

THE COMMISSION FOR CONDUCTING THE PARI-MUTUEL SYSTEM OF WAGERING

ON THE RESULTS OF HORSE RACING HELD AT SUCH MEETINGS OR RACE

MEETINGS CONDUCTED BY ANOTHER LICENSED RACING ENTITY OR

TRANSMITTED TO SUCH LOCATIONS BY SIMULCASTING.

"RACING VENDOR." A PERSON WHO PROVIDES GOODS OR SERVICES TO

A LICENSED RACING ENTITY DIRECTLY RELATED TO RACING OR THE

RACING PRODUCT, AS DETERMINED BY THE COMMISSION.

"SECONDARY MARKET AREA OF A RACETRACK." THE LAND AREA

INCLUDED IN A CIRCLE DRAWN WITH THE RACETRACK AS THE CENTER AND

A RADIUS OF 50 LAND MILES, NOT INCLUDING THE PRIMARY MARKET AREA

OF THE RACETRACK.

"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." 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

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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

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.

SUBCHAPTER B

RACING OVERSIGHT

SEC.

9311. STATE HORSE RACING COMMISSION.

9312. ADDITIONAL POWERS OF COMMISSION.

9313. BUDGET.

9314. LOCATION.

9315. NUMBER OF LICENSED RACING ENTITIES.

9316. DEPARTMENT OF REVENUE.

9317. ALLOCATION OF RACING DAYS.

9318. LICENSES FOR HORSE RACE MEETINGS.

9319. CODE OF CONDUCT.

9320. FINANCIAL INTERESTS.

9321. OFFICIALS AT HORSE RACE MEETINGS.

20160SB1229PN2219 - 21 -

9322. SECONDARY PARI-MUTUEL ORGANIZATION.

9323. OCCUPATIONAL LICENSES FOR INDIVIDUALS.

9324. (RESERVED).

9325. POWER OF COMMISSION TO IMPOSE FINES.

9326. ADMISSION TO RACETRACK.

9327. SECURITY PERSONNEL.

9328. (RESERVED).

9329. INTERSTATE SIMULCASTING.

9330. PLACE AND MANNER OF CONDUCTING PARI-MUTUEL WAGERING AT

RACETRACK ENCLOSURE.

9331. PARI-MUTUEL WAGERING AT NONPRIMARY LOCATIONS.

9332. BOOKS AND RECORDS OF PARI-MUTUEL WAGERING.

9333. FILING OF CERTAIN AGREEMENTS WITH COMMISSION.

9334. STATE RACING FUND AND TAX RATE.

9335. PARI-MUTUEL POOL DISTRIBUTION.

9336. PENNSYLVANIA BREEDING FUND.

9337. PENNSYLVANIA SIRE STAKES FUND.

9338. FAIR FUND PROCEEDS.

9339. HEARING.

9340. PROHIBITION OF WAGERING.

9341. VETERINARIANS AND STATE STEWARDS.

9342. PROMOTIONS AND DISCOUNTS.

9343. MONITORING OF WAGERING ON VIDEO SCREENS.

9344. INTRASTATE SIMULCASTING.

9345. COMMINGLING.

9346. STANDARDBRED HORSE RACING PURSE MONEY.

§ 9311. STATE HORSE RACING COMMISSION.

(A) ESTABLISHMENT.--THE STATE HORSE RACING COMMISSION IS

ESTABLISHED AS A COMMISSION WITHIN THE DEPARTMENT OF AGRICULTURE

TO INDEPENDENTLY REGULATE THE OPERATIONS OF HORSE RACING, THE

20160SB1229PN2219 - 22 -

CONDUCT OF PARI-MUTUEL WAGERING AND THE PROMOTION AND MARKETING

OF HORSE RACING IN THIS COMMONWEALTH IN ACCORDANCE WITH THIS

CHAPTER.

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

FOLLOWING MEMBERS:

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

(I) ONE INDIVIDUAL REPRESENTING THE THOROUGHBRED

HORSEMEN'S ORGANIZATIONS IN THIS COMMONWEALTH, SELECTED

FROM A LIST OF AT LEAST 10 QUALIFIED INDIVIDUALS

SUBMITTED BY THE THOROUGHBRED HORSEMEN'S ORGANIZATIONS.

(II) ONE INDIVIDUAL REPRESENTING A THOROUGHBRED

BREEDER ORGANIZATION IN THIS COMMONWEALTH, SELECTED FROM

A LIST OF AT LEAST 10 QUALIFIED INDIVIDUALS SUBMITTED BY

A THOROUGHBRED BREEDER ORGANIZATION.

(III) ONE INDIVIDUAL REPRESENTING THE STANDARDBRED

HORSEMEN'S ORGANIZATIONS IN THIS COMMONWEALTH, SELECTED

FROM A LIST OF AT LEAST 10 QUALIFIED INDIVIDUALS

SUBMITTED BY THE STANDARDBRED HORSEMEN'S ORGANIZATIONS.

(IV) ONE INDIVIDUAL REPRESENTING A STANDARDBRED

BREEDER ORGANIZATION IN THIS COMMONWEALTH, SELECTED FROM

A LIST OF AT LEAST 10 QUALIFIED INDIVIDUALS SUBMITTED BY

A STANDARDBRED BREEDER ORGANIZATION.

(2) ONE MEMBER APPOINTED BY EACH OF THE FOLLOWING, NONE

OF WHOM SHALL BE A MEMBER OF A HORSEMEN'S ORGANIZATION OR

BREEDER ORGANIZATION:

(I) THE PRESIDENT PRO TEMPORE OF THE SENATE.

(II) THE MINORITY LEADER OF THE SENATE.

(III) THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

(IV) THE MINORITY LEADER OF THE HOUSE OF

REPRESENTATIVES.

20160SB1229PN2219 - 23 -

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

DESIGNEE, WHO SHALL BE A NONVOTING EX OFFICIO MEMBER.

(4) ONE INDIVIDUAL WHO IS A LICENSED DOCTOR OF

VETERINARY MEDICINE IN THIS COMMONWEALTH, WHO SHALL NOT BE A

MEMBER OF A HORSEMEN'S ORGANIZATION OR A BREEDER

ORGANIZATION, APPOINTED BY THE GOVERNOR.

(5) EACH APPOINTING AUTHORITY SHALL MAKE ITS

APPOINTMENTS WITHIN 30 DAYS OF THE EFFECTIVE DATE OF THIS

SECTION. APPOINTMENTS TO FILL A VACANCY SHALL BE MADE WITHIN

10 DAYS OF THE CREATION OF THE VACANCY. AN APPOINTMENT SHALL

NOT BE FINAL UNTIL RECEIPT BY THE APPOINTING AUTHORITY OF A

BACKGROUND INVESTIGATION OF THE APPOINTEE BY THE PENNSYLVANIA

STATE POLICE, WHICH SHALL BE COMPLETED WITHIN 30 DAYS OF THE

APPOINTMENT. A PERSON WHO HAS BEEN CONVICTED IN A DOMESTIC OR

FOREIGN JURISDICTION OF A FELONY, INFAMOUS CRIME, GAMBLING

OFFENSE OR AN OFFENSE RELATED TO FIXING HORSE RACES OR ANIMAL

CRUELTY MAY NOT BE APPOINTED TO THE COMMISSION.

(6) THE FOLLOWING SHALL APPLY TO APPOINTEES,

COMMISSIONERS, EMPLOYEES AND INDEPENDENT CONTRACTORS:

(I) EACH COMMISSIONER AT THE TIME OF APPOINTMENT

MUST BE AT LEAST 25 YEARS OF AGE AND MUST HAVE BEEN A

RESIDENT OF THIS COMMONWEALTH FOR A PERIOD OF AT LEAST

ONE YEAR IMMEDIATELY PRECEDING APPOINTMENT. EACH

COMMISSIONER MUST REMAIN A RESIDENT OF THIS COMMONWEALTH

DURING THE TERM OF MEMBERSHIP ON THE COMMISSION.

(II) EXCEPT FOR THE COMMISSIONER APPOINTED UNDER

PARAGRAPH (3), A PERSON MAY NOT BE APPOINTED A

COMMISSIONER IF THE PERSON IS A PUBLIC OFFICIAL OR PARTY

OFFICER AS DEFINED IN 4 PA.C.S. § 1512 (RELATING TO

FINANCIAL AND EMPLOYMENT INTERESTS) IN THIS COMMONWEALTH

20160SB1229PN2219 - 24 -

OR ANY OF ITS POLITICAL SUBDIVISIONS.

(III) EACH COMMISSIONER, EMPLOYEE AND INDEPENDENT

CONTRACTOR OF THE COMMISSION MUST SIGN AN AGREEMENT NOT

TO DISCLOSE CONFIDENTIAL INFORMATION.

(IV) EXCEPT FOR A COMMISSIONER APPOINTED UNDER

PARAGRAPH (1), A COMMISSIONER, EMPLOYEE OR INDEPENDENT

CONTRACTOR OF THE COMMISSION OR OTHER AGENCY HAVING

REGULATORY AUTHORITY OVER HORSE RACING UNDER THIS CHAPTER

MAY NOT BE EMPLOYED, HOLD AN OFFICE OR POSITION OR BE

ENGAGED IN AN ACTIVITY WHICH IS INCOMPATIBLE WITH THE

POSITION, EMPLOYMENT OR CONTRACT.

(V) A COMMISSIONER MAY NOT BE PAID OR RECEIVE A FEE

OR OTHER COMPENSATION FOR ANY ACTIVITY RELATED TO THE

DUTIES OR AUTHORITY OF THE COMMISSION OTHER THAN

COMPENSATION AND EXPENSES PROVIDED BY LAW.

(VI) A COMMISSIONER, EMPLOYEE OR INDEPENDENT

CONTRACTOR OF THE COMMISSION MAY NOT PARTICIPATE IN A

HEARING, PROCEEDING OR OTHER MATTER IN WHICH THE MEMBER,

EMPLOYEE OR INDEPENDENT CONTRACTOR, OR THE IMMEDIATE

FAMILY THEREOF, HAS A FINANCIAL INTEREST IN THE SUBJECT

MATTER OF THE HEARING OR PROCEEDING OR OTHER INTEREST

THAT COULD BE SUBSTANTIALLY AFFECTED BY THE OUTCOME OF

THE HEARING OR PROCEEDING WITHOUT FIRST FULLY DISCLOSING

THE NATURE OF THE INTEREST TO THE COMMISSION AND OTHER

PERSONS PARTICIPATING IN THE HEARING OR PROCEEDING. THE

COMMISSION SHALL DETERMINE IF THE INTEREST IS A

DISQUALIFYING INTEREST THAT REQUIRES THE DISQUALIFICATION

OR NONPARTICIPATION OF A COMMISSIONER, AN EMPLOYEE OR

INDEPENDENT CONTRACTOR.

(VII) AT THE TIME OF APPOINTMENT AND ANNUALLY

20160SB1229PN2219 - 25 -

THEREAFTER, EACH COMMISSIONER SHALL DISCLOSE THE

EXISTENCE OF ANY FINANCIAL INTEREST IN ANY APPLICANT OR

LICENSED RACING ENTITY AND IN AN AFFILIATE, INTERMEDIARY,

SUBSIDIARY OR HOLDING COMPANY THEREOF HELD BY THE

COMMISSIONER OR KNOWN TO BE HELD BY A COMMISSIONER'S

IMMEDIATE FAMILY. THE DISCLOSURE STATEMENT SHALL BE FILED

WITH EACH DIRECTOR ESTABLISHED UNDER SUBSECTION (D)(2)

AND WITH THE APPOINTING AUTHORITY FOR SUCH COMMISSIONER

AND SHALL BE OPEN TO INSPECTION BY THE PUBLIC AT THE

OFFICE OF THE COMMISSION DURING THE NORMAL BUSINESS HOURS

OF THE COMMISSION AND POSTED ON THE COMMISSION'S INTERNET

WEBSITE FOR THE DURATION OF A COMMISSIONER'S TERM AND FOR

TWO YEARS AFTER A COMMISSIONER LEAVES OFFICE.

(VIII) (RESERVED).

(IX) A COMMISSIONER, EMPLOYEE OR BUREAU DIRECTOR OF

THE COMMISSION MAY NOT DIRECTLY OR INDIRECTLY SOLICIT,

REQUEST, SUGGEST OR RECOMMEND TO ANY APPLICANT, LICENSED

RACING ENTITY OR AN AFFILIATE, INTERMEDIARY, SUBSIDIARY

OR HOLDING COMPANY THEREOF OR TO AN EMPLOYEE OR AGENT

THEREOF, THE APPOINTMENT OR EMPLOYMENT OF ANY PERSON IN

ANY CAPACITY BY THE APPLICANT, LICENSED RACING ENTITY OR

AN AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY

THEREOF DURING THE TERM OF OFFICE OR EMPLOYMENT WITH THE

COMMISSION.

(X) EXCEPT FOR A COMMISSIONER APPOINTED UNDER

PARAGRAPH (1), A COMMISSIONER MAY NOT ACCEPT EMPLOYMENT

WITH AN APPLICANT FOR A HORSE RACING LICENSE, A LICENSED

RACING ENTITY, OR AN AFFILIATE, INTERMEDIARY, SUBSIDIARY

OR HOLDING COMPANY THEREOF, FOR A PERIOD OF TWO YEARS

FROM THE TERMINATION OF THE TERM OF OFFICE.

20160SB1229PN2219 - 26 -

(XI) A FORMER COMMISSIONER MAY NOT APPEAR BEFORE THE

COMMISSION IN ANY HEARING OR PROCEEDING OR PARTICIPATE IN

ANY OTHER ACTIVITY ON BEHALF OF ANY APPLICANT FOR A HORSE

RACING LICENSE, A LICENSED RACING ENTITY, OR AN

AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF

AN APPLICANT OR LICENSED RACING ENTITY FOR A PERIOD OF

TWO YEARS FROM THE TERMINATION OF TERM OF OFFICE.

(XII) A COMMISSIONER OR EMPLOYEE OF THE COMMISSION

MAY NOT ACCEPT A COMPLIMENTARY SERVICE, PLACE A WAGER OR

BE PAID ANY PRIZE FROM ANY WAGER ON A HORSE RACE AT A

RACETRACK OR NONPRIMARY LOCATION WITHIN THIS COMMONWEALTH

OR AT ANY OTHER RACETRACK OR NONPRIMARY LOCATION OUTSIDE

THIS COMMONWEALTH WHICH IS OWNED OR OPERATED BY A

LICENSED RACING ENTITY OR ANY OF ITS AFFILIATES,

INTERMEDIARIES, SUBSIDIARIES OR HOLDING COMPANIES FOR THE

DURATION OF THE COMMISSIONER'S OR EMPLOYEE'S TERM OF

OFFICE OR EMPLOYMENT. NOTHING IN THIS SECTION SHALL BE

CONSTRUED TO PROHIBIT A COMMISSIONER APPOINTED UNDER

PARAGRAPH (1) FROM BEING AWARDED A PURSE OR BREEDERS'

AWARD FOR THE COMMISSIONER'S PARTICIPATION IN HORSE

RACING.

(XIII) A COMMISSIONER WHO HAS BEEN CONVICTED DURING

HIS TERM OF OFFICE IN A DOMESTIC OR FOREIGN JURISDICTION

OF A FELONY, INFAMOUS CRIME, OFFENSE RELATED TO FIXING OR

RIGGING HORSE RACES OR GAMBLING OFFENSE SHALL, UPON

CONVICTION, BE AUTOMATICALLY REMOVED FROM THE COMMISSION

AND SHALL BE INELIGIBLE TO BECOME A COMMISSIONER IN THE

FUTURE.

(XIV) THE FOLLOWING SHALL APPLY TO AN EMPLOYEE OF

THE COMMISSION, WHO IS NOT SUBJECT TO A COLLECTIVE

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BARGAINING AGREEMENT, WHOSE DUTIES SUBSTANTIALLY INVOLVE

LICENSING, ENFORCEMENT, DEVELOPMENT OF LAW, PROMULGATION

OF REGULATIONS OR DEVELOPMENT OF POLICY RELATING TO HORSE

RACING UNDER THIS CHAPTER OR WHO HAS OTHER DISCRETIONARY

AUTHORITY WHICH MAY AFFECT OR INFLUENCE THE OUTCOME OF AN

ACTION, PROCEEDING OR DECISION UNDER THIS CHAPTER,

INCLUDING THE DIRECTOR OF A BUREAU:

(A) THE INDIVIDUAL MAY NOT, FOR A PERIOD OF TWO

YEARS FOLLOWING TERMINATION OF EMPLOYMENT, ACCEPT

EMPLOYMENT WITH OR BE RETAINED BY AN APPLICANT FOR A

HORSE RACING LICENSE OR A LICENSED RACING ENTITY OR

BY AN AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING