Amendment 2179 to Senate Bill 352 P.N. 505, Regular Session 2015-2016

S0352B0505A02179 MSP:JMT 06/15/15 #90 A02179

AMENDMENTS TO SENATE BILL NO. 352

Sponsor: SENATOR VOGEL

Printer's No. 505

Amend Bill, page 1, line 10, by inserting after "wagering;"

providing for compliance;

Amend Bill, page 2, lines 5 through 8, by striking out all of

said lines and inserting

"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.

Amend Bill, page 2, lines 16 and 17, by striking out "As

defined in 4 Pa.C.S. § 1103 (relating to" in line 16 and all of

line 17 and inserting

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, 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,

paddock enclosure and walking ring.

Amend Bill, page 3, lines 4 through 11, by striking out all

of said lines and inserting

"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

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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

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

betting system located in this Commonwealth.

Amend Bill, page 3, line 15, by striking out "or hearing

officer"

Amend Bill, page 3, lines 17 and 18, by striking out "or

hearing officer "

Amend Bill, page 3, line 19, by striking out "or hearing

officer"

Amend Bill, page 3, lines 21 and 22, by striking out "or

hearing officer of the commission"

Amend Bill, page 3, line 30; page 4, line 1; by striking out

all of said lines on said pages and inserting

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

the laws of another jurisdiction, punishable by imprisonment for

more than five years.

Amend Bill, page 5, lines 18 through 26, by striking out all

of said lines

Amend Bill, page 5, line 27, by inserting after ""Licensed"

racing

Amend Bill, page 6, by inserting between lines 10 and 11

"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.

Amend Bill, page 6, line 22, by striking out all of said line

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and inserting

"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.

Amend Bill, page 6, by inserting after line 30

"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.

Amend Bill, page 7, line 10, by inserting after "conducted,"

including the grandstand, frontside and backside facilities

Amend Bill, page 7, line 16, by inserting a bracket before

"televised"

Amend Bill, page 7, line 16, by inserting after "televised"

] transmitted

Amend Bill, page 7, lines 21 through 23, by striking out all

of said lines and inserting

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

other than a licensed racing entity, that offers and accepts

pari-mutuel wagers.

"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

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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.

Amend Bill, page 7, by inserting between lines 27 and 28

"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.

Amend Bill, page 83, line 24, by inserting after "PROMOTION"

and marketing

Amend Bill, page 84, line 20, by inserting after "MEMBERS"

, who must be residents of this Commonwealth

Amend Bill, page 87, line 6, by striking out the comma after

"applicant" and inserting

and

Amend Bill, page 87, line 7, by striking out "or licensed

facility ENTITY "

Amend Bill, page 87, lines 22 through 30; page 88, lines 1

through 9; by striking out "Prior to entering into employment or

a" in line 22, all of lines 23 through 30 on page 87 and all of

lines 1 through 9 on page 88 and inserting

(Reserved).

Amend Bill, page 88, line 10, by striking out "employee" and

inserting

bureau director

Amend Bill, page 90, line 14, by striking out ", permittee"

Amend Bill, page 90, line 16, by striking out ", permittee"

Amend Bill, page 92, lines 13 through 18, by striking out all

of said lines

Amend Bill, page 92, line 19, by striking out "(9)" and

inserting

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(7)

Amend Bill, page 93, line 4, by striking out "MEMBER" and

inserting

commissioner

Amend Bill, page 95, line 28, by inserting after "VOTE"

consisting of at least six of the nine commissioners

Amend Bill, page 96, line 7, by inserting after "ACT."

The commission may, by order, delegate duties and

responsibilities to the bureau director as the commission

determines necessary to discharge the day-to-day licensing,

enforcement and administrative operations of the commission.

Amend Bill, page 96, line 8, by striking out "any" and

inserting

all

Amend Bill, page 96, lines 9 and 10, by striking out all of

said lines and inserting

(i) Has either:

(A) been certified as a racing official; or

(B) has at least five years' experience in the

Amend Bill, page 96, by inserting between lines 12 and 13

(ii) Any other criteria established by the

commission.

Amend Bill, page 96, line 28, by inserting after "entities"

and racetrack facilities

Amend Bill, page 97, by inserting between lines 8 and 9

(vii) Issue administrative subpoenas to effectuate

an inspection and review under this paragraph, administer

oaths and take testimony as necessary for the

administration of this act.

Amend Bill, page 97, line 16, by striking out "all horses"

and inserting

any horse

Amend Bill, page 97, line 16, by inserting after "race,"

notwithstanding the physical location of the horse,

Amend Bill, page 97, line 27, by inserting after

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"commissioners."

The super majority vote under this paragraph shall be a

qualified majority vote which must consist of the vote of at

least one appointee under section 201-A(b)(1) and four

appointees under section 201-A(b)(2).

Amend Bill, page 97, line 28, by inserting after "action"

by the board of judges or stewards

Amend Bill, page 98, line 3, by inserting after

"commissioners"

, unless the duties have been delegated by the commission

to the bureau directors

Amend Bill, page 98, line 11, by inserting after "the"

action requiring a

Amend Bill, page 98, line 11, by striking out "consist" and

inserting

require a vote of the majority

Amend Bill, page 98, line 12, by inserting after

"commissioners"

plus one additional vote

Amend Bill, page 98, line 15, by inserting after "documents"

, digital or nondigital,

Amend Bill, page 98, line 17, by striking out "Documents" and

inserting

The commission may accept digital signatures on

documents provided or filed and documents

Amend Bill, page 99, line 9, by inserting after "act."

Notwithstanding any other provision of this act or law,

regulations must be approved by a qualified majority vote

which must consist of the vote of at least one appointee

under section 201-A(b)(1) and four appointees under section

201-A(b)(2). Regulations relating to standardbred horse

racing must be promulgated separately from regulations

relating to thoroughbred horse racing.

Amend Bill, page 99, line 9, by inserting after "in"

this paragraph and

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Amend Bill, page 100, line 6, by inserting after "commission"

, through the Department of Agriculture,

Amend Bill, page 100, line 14, by inserting after

"appropriate."

Notwithstanding any other reporting requirements in 4

Pa.C.S. § 1211 (relating to reports of board), the Pennsylvania

Gaming Control Board and the Department of Agriculture must

jointly submit the report under this subsection relating to

racing on an annual basis.

Amend Bill, page 100, line 17, by striking out "The" and

inserting

Amend Bill, page 100, line 18, by striking out "shall be the

property of the commission and"

Amend Bill, page 100, lines 19 and 20, by striking out "upon

the request of any commissioner or "

Amend Bill, page 100, line 20, by striking out "other"

Amend Bill, page 100, lines 22 and 23, by striking out

"Beginning 30 days after the effective date of this section,

the" and inserting

The

Amend Bill, page 100, line 23, by inserting after "shall"

annually

Amend Bill, page 100, lines 23 and 24, by striking out ",

within 45 days after the end of each month "

Amend Bill, page 100, lines 25 and 26, by striking out "for

that month"

Amend Bill, page 101, by inserting between lines 9 and 10

(n) Reimbursement.--The Department of Agriculture's

provision of shared administrative services, shared staff and

shared facilities to the commission must be reimbursed from the

State Racing Fund and shall be limited to actual costs of

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providing the services, staff and facilities, including

salaries, benefits and expenses of employees providing the

shared administrative services. The Department of Agriculture

must retain records regarding administrative shared services

provided to the commission by a Department of Agriculture's

employee.

Amend Bill, page 101, lines 17 through 30; page 102, lines 1

through 10; by striking out all of said lines on said pages and

inserting

(2) The following shall apply:

(i) The commission shall require an applicant under

this act to submit to fingerprinting for a report of

Federal criminal history record information.

(ii) The applicant must submit a full set of

fingerprints to the Pennsylvania State Police or the

Pennsylvania State Police's authorized agent for the

purpose or a record check. The Pennsylvania State Police

or the Pennsylvania State Police's authorized agent must

then submit the fingerprints to the Federal Bureau of

Investigation for the purpose of verifying the identity

of the applicant and obtaining a current record of any

criminal arrests and convictions.

(iii) The commission shall consider information

obtained pursuant to this paragraph for the purpose of

screening applicants for fitness for licensure in

accordance with the provisions of this act.

(iv) National criminal history record information

received by the commission shall be handled and

maintained in accordance with Federal Bureau of

Investigation policy.

(v) Fingerprints obtained under this paragraph may

be maintained by the commission and Pennsylvania State

Police to enforce this act and for general law

enforcement purposes.

(vi) In addition to any other fee or cost assessed

by the commission, an applicant must pay for the cost of

the fingerprint process.

(vii) The commission may exempt applicants for

positions not related to the care or training of horses,

racing, wagering, security or the management of a

licensed racing entity, from the provisions of this

chapter.

Amend Bill, page 102, line 11, by inserting after "(3) "

Within 90 days of the effective date of this section,

the commission must adopt and publish a comprehensive fee

schedule in the Pennsylvania Bulletin.

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Amend Bill, page 102, line 22, by striking out "permit

applications" and inserting

other regulatory administrative actions

Amend Bill, page 103, lines 1 and 2, by striking out "enter

into interstate compacts with " and inserting

adopt national standards from

Amend Bill, page 103, line 2, by inserting after

"jurisdictions"

or commission-approved trade organizations

Amend Bill, page 103, line 7, by inserting after "online"

pari-mutuel

Amend Bill, page 103, line 15, by inserting after "paragraph"

and may contract with, hire or otherwise consult with

racetrack surface experts to carry out the provisions of this

section

Amend Bill, page 103, line 25, by inserting after

"COMMISSION"

and the Department of Agriculture

Amend Bill, page 103, line 30, by striking out "OR" and

inserting

and

Amend Bill, page 104, lines 2 through 6, by striking out "THE

COMMISSION SHALL TRANSMIT A COPY OF ITS BUDGET" in line 2 and

all of lines 3 through 6 and inserting

Annually, 1% of the previous fiscal year's deposits into the

Pennsylvania Race Horse Development Fund shall be transfered

from the Pennsylvania Race Horse Development Fund to the State

Racing Fund to provide for the promotion of horse racing.

Amend Bill, page 104, line 12, by striking out "six" and

inserting

five

Amend Bill, page 104, line 13, by striking out "meet" and

inserting

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wager

Amend Bill, page 104, line 17, by striking out "five" and

inserting

six

Amend Bill, page 106, line 20, by inserting after "right"

and may not be used as collateral or be encumbered

Amend Bill, page 106, line 29, by striking out "upon" and

inserting

and remain in effect if the licensed racing entity complies

with each condition, rule and regulation of the commission and

the provisions of this act, including

Amend Bill, page 109, by inserting between lines 16 and 17

(iv) Has been convicted of a crime involving moral

turpitude.

(v) Has been convicted of a misdemeanor gambling

offense in any jurisdiction.

(vi) Has been convicted in any jurisdiction of fraud

or misrepresentation related to horse racing or horse

breeding.

Amend Bill, page 110, line 10, by inserting after "cease"

, subject to 2 Pa.C.S. (relating to administrative law and

procedure)

Amend Bill, page 110, line 13, by inserting after "effect."

After request for a hearing by a licensee, the commission

may grant a supersedeas, pending the final determination of the

suspension.

Amend Bill, page 110, line 14, by inserting after "Renewal.--

A "

horse racing

Amend Bill, page 110, line 14, by inserting after "years"

upon application

Amend Bill, page 110, line 25, by striking out "shall" and

inserting

may

Amend Bill, page 110, lines 26 through 29, by striking out

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"prior to the consideration of any license, permit or" in line

26 and all of lines 27 through 29

Amend Bill, page 111, lines 5 through 9, by striking out "At

a minimum, the code of" in line 5, all of lines 6 through 8 and

"(b) Registration.--" in line 9 and inserting

(b) Licensed racing entity representative.--

Amend Bill, page 111, line 10, by inserting after "licensed"

racing

Amend Bill, page 111, line 13, by inserting after "licensed"

racing

Amend Bill, page 111, line 16, by inserting after "licensed"

racing

Amend Bill, page 112, lines 1 and 2, by striking out "a

licensed racing entity, permittee, registrant or licensed entity

representative" and inserting

other licensee

Amend Bill, page 112, line 13, by striking out "Not" and

inserting

Except for commissioners appointed under section 201-

A(b)(3) and (4), not

Amend Bill, page 112, lines 29 and 30, by striking out "or

hearing officer"

Amend Bill, page 113, lines 2 and 3, by striking out "or

hearing officer "

Amend Bill, page 113, line 11, by striking out "or hearing

officer's"

Amend Bill, page 114, line 6, by striking out "and

employment"

Amend Bill, page 114, line 7, by inserting after "No "

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director,

Amend Bill, page 114, lines 14 through 24, by striking out

all of said lines and inserting

(a) Racetrack racing official.--The commission shall approve

each racetrack employee whose duties include the enforcement of

pari-mutuel racing activities which directly or indirectly

affect the racing product. Compensation for an official under

this subsection shall be paid by the licensed racing entity.

(b) Commission racing official.--The commission shall employ

individuals who shall be designated as commission racing

officials and whose duties shall include the oversight and

enforcement of this act, regulations and commission policies

related to prerace activities, the conduct of live racing and

pari-mutuel wagering. The commission, by regulation, shall

establish the duties and responsibilities for a commission

racing official. The cost for and compensation of a commission

racing official shall be paid by the commission.

Section 212-A. Secondary pari-mutuel organization.

(a) Requirements.--The following shall apply to a secondary

pari-mutuel organization:

(1) A secondary pari-mutuel organization offering and

accepting pari-mutuel wagers within this Commonwealth must be

properly licensed by the commission. Each secondary pari-

mutuel organization employee directly or indirectly

responsible for the acceptance of wagers on horse races or

the transmittal of wagering information to and from the

Commonwealth must be properly licensed.

(2) A secondary pari-mutuel organization must comply

with each rule and regulation of the commission.

(3) As a condition of licensing and annual license

renewal, a license application of a secondary pari-mutuel

organization must include all of the following:

(i) Disclosure of each officer, director, partner

and share holder with a 5% or greater share of ownership

or beneficial interest.

(ii) A list of personnel assigned to work in this

Commonwealth.

(iii) Certification of compliance with totalisator

standards and licensing requirements adopted by the

commission.

(iv) A type II SAS 70 report, or other independent

report in a form acceptable to the commission, completed

within the preceding 12 months, to assure adequate

financial controls are in place in the secondary pari-

mutuel organization.

(v) An agreement to allow the commission to inspect

and monitor each facility used by the secondary pari-

mutuel organization for accepting, recording or

processing pari-mutuel wagers accepted in this

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Commonwealth.

(vi) Certification of the use of a pari-mutuel

system which meets all requirements for a pari-mutuel

system utilized by a licensed racing entity in this

Commonwealth.

(4) Fitness and experience of a secondary pari-mutuel

organization must be consistent with the public interest,

convenience and necessity and the best interests of racing

generally, including, but not limited to, all of the

following:

(i) Meeting general industry standards for business

and financial practices, procedures and controls.

(ii) Possession of a wagering system that ensures

that all wagering information is transmitted to and

calculated in the appropriate host track pool.

(iii) Utilization of a totalisator system that meets

wagering-industry standards and certification criteria.

(iv) Meeting general industry standards for physical

security of computerized wagering systems, business

records, facilities and patrons.

(v) Having no indications of improper manipulation

of a secondary pari-mutuel organization's wagering

system, including software.

(vi) Having policies and procedures that ensure a

secondary pari-mutuel organization's key individuals have

applied and are eligible for all required occupational

licenses.

(vii) Having an annual independent audit with no

audit opinion qualifications that reflect adversely on

integrity.

(viii) Having a system that verifies the identity of

each person placing a wager and requires the person

placing a wager to disclose each beneficial interest in a

wager the secondary pari-mutuel organization accepts.

(ix) Having a real-time independent monitoring

system to monitor wagering activity to detect suspicious

patterns including any that might indicate criminal

activity or regulatory violations. The system must verify

each transaction performed by the totalisator system and

provide expeditious notice of any discrepancies or

suspicious activity to the host track, wagering site, due

diligence investigating body and any affected regulatory

agency.

(x) Having a satisfactory record of customer

relations, including no excessive unresolved patron

complaints concerning the secondary pari-mutuel

organization's business practices.

(xi) Holding required permits, licenses,

certifications or similar documents that may be required

by a racing, gaming or other pari-mutuel wagering

jurisdiction.

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(xii) Having sufficient measures to protect customer

funds.

(xiii) Publicizing and providing a sufficient

program for customer self-exclusion and wagering

limitation.

(xiv) Having expertise in pari-mutuel wagering and

being technologically capable of participating in

simulcast and wagering activities.

(5) Financial responsibility of a secondary pari-mutuel

organization must be consistent with the public interest,

convenience and necessity and the best interests of racing

generally, including all of the following:

(i) The secondary pari-mutuel organization and the

secondary pari-mutuel organization's key individuals may

not be in default or have a history of defaulting in the

payment of an financial obligation, including the payment

of taxes due to a taxing jurisdiction or on the payment

of gaming, wagering or pari-mutuel racing-related

financial obligations. A secondary pari-mutuel

organization's key individuals may not be four or more

months in arrears for child support that is ordered or

approved by a court in any jurisdiction within the United

States.

(ii) The secondary pari-mutuel organization and the

secondary pari-mutuel organization's owners and sources

of funds must have sufficient financial means to

participate in simulcast and wagering activities,

including sufficient assets and means to pay industry-

related debts and obligations and to fund the operations

of the secondary pari-mutuel organization.

(6) The secondary pari-mutuel organization must be fully

cooperative and act in good faith with all disclosure and

other duties involved in a due diligence investigation,

voluntarily submit to regulatory and investigating body

oversight, permit inspection of each business record upon

request by a regulatory authority or investigating body,

promptly honor regulatory or investigating body requests for

wagering patterns or other information and, after reasonable

notice, permit full access to each facility and property by a

regulatory authority or investigating body.

(b) Waiver.--

(1) A due diligence investigation may rely on an

investigation and oversight conducted by a commission-

approved entity.

(2) The commission may not consent to the acceptance of

an interstate off-track wager by a secondary pari-mutuel

organization that has not been determined to be suitable

under this section.

Amend Bill, page 114, line 28, by striking out "horseman's

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organizations,"

Amend Bill, page 115, line 11, by inserting after "years"

upon application and review

Amend Bill, page 115, line 25, by striking out "one" and

inserting

any

Amend Bill, page 116, line 5, by striking out "or permit"

Amend Bill, page 118, line 6, by striking out "between" and

inserting

directly affecting the administration of the racing product

and wagering activities between a secondary pari-mutuel

organization,

Amend Bill, page 118, line 14, by striking out "applicant's"

and inserting

licensee's

Amend Bill, page 118, lines 26 through 29, by striking out

"Reciprocity.--The commission shall not grant licenses to " in

line 26 and all of lines 27 through 29 and inserting

(Reserved).

Amend Bill, page 119, line 22, by inserting after "warrants"

on racetrack enclosures

Amend Bill, page 120, lines 12 through 17, by striking out

all of said lines

Amend Bill, page 121, line 3, by striking out "$100,000" and

inserting

$10,000

Amend Bill, page 121, line 17, by striking out "shall" and

inserting

may

Amend Bill, page 121, line 28, by inserting after

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"determination"

in writing

Amend Bill, page 121, line 28, by striking out ", if"

Amend Bill, page 121, line 30, by striking out the comma

after "enclosure"

Amend Bill, page 122, line 1, by inserting after "effect"

unless a supersedeas has been granted by the bureau director

Amend Bill, page 122, line 12, by inserting after "security"

where it occurs the first time

as determined by the commission

Amend Bill, page 122, line 16, by inserting after

"enforcement"

agencies

Amend Bill, page 122, lines 17 through 25, by striking out

all of lines 17 through 24 and "(3)" in line 25 and inserting

(2)

Amend Bill, page 122, line 25, by striking out "interrogate,"

Amend Bill, page 123, lines 3 through 18, by striking out

"Interstate simulcasting." in line 3 and all of lines 4 through

18 and inserting

(Reserved).

Amend Bill, page 123, line 19, by striking out "Televised

simulcastings" and inserting

Interstate simulcasting

Amend Bill, page 123, line 20, by inserting after

"licensees.--"

The commission may approve the application of a licensed

racing entity or secondary pari-mutuel organization to

electronically simulcast horse races to and from this

Commonwealth.

Amend Bill, page 123, line 21, by inserting after "entity"

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where it occurs the first time

or secondary pari-mutuel organization

Amend Bill, page 124, line 11, by striking out "Forms" and

inserting

All forms

Amend Bill, page 124, line 12, by striking out "to be

televised by simulcasting" and inserting

simulcasted

Amend Bill, page 124, line 27, by inserting after "wagering"

at racetrack enclosure

Amend Bill, page 125, line 18, by striking out "wagering.--A"

and inserting

wagering system.--In addition to other forms of live

wagering, including cash at a window teller, a

Amend Bill, page 125, line 19, by inserting after "operate "

Amend Bill, page 125, line 19, by inserting after "wagering"

system

Amend Bill, page 125, by inserting between lines 25 and 26

(3) A license fee may not be imposed on a licensed

racing entity in conjunction with the ability to operate

electronic wagering.

Amend Bill, page 126, line 2, by inserting after "wagering "

systems

Amend Bill, page 126, line 3, by inserting after "entity"

, secondary pari-mutuel organization

Amend Bill, page 126, lines 4 and 5, by striking out all of

said lines and inserting

(e) Conditions.--A licensed racing entity shall only accept

and

Amend Bill, page 126, lines 10 and 11, by striking out all of

said lines

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Amend Bill, page 126, line 13, by striking out "No" and

inserting

Amend Bill, page 126, line 13, by striking out "may" and

inserting

or secondary pari-mutuel organization may not

Amend Bill, page 126, line 14, by inserting after "wagering "

or advanced deposit account wagering

Amend Bill, page 131, lines 2 and 3, by striking out

"licensed advance deposit account wagering entity " and inserting

secondary pari-mutuel organization

Amend Bill, page 131, line 6, by striking out "licensed

advance deposit account wagering entity" and inserting

secondary pari-mutuel organization

Amend Bill, page 131, line 7, by inserting after "day "

on win, place or show wagers

Amend Bill, page 131, line 8, by inserting after "on "

an exotic wager, including

Amend Bill, page 131, lines 9 through 15, by striking out all

of said lines and inserting

any interest shall be used as follows:

(1) For the administration and enforcement of this act

including:

(i) Funds to the commission in an amount

appropriated by the General Assembly.

(ii) Funds to the Department of Revenue in an amount

appropriated by the General Assembly.

(2) If annual revenue under subsection (b) is sufficient

to satisfy the requirement under paragraph (1), t he remainder

of the money shall be distributed as follows:

(i) An amount equivalent to 1% of the amount wagered

each racing day at thoroughbred horse race meetings shall

be paid by the Department of Revenue from the State

Racing Fund for credit to the Pennsylvania Breeding Fund.

(ii) An amount equivalent to 1.5% of the amount

wagered each racing day at standardbred horse race

2015/90MSP/SB0352A02179 - 18 -

meetings shall be paid by the Department of Revenue from

the State Racing Fund for credit to the Pennsylvania Sire

Stakes Fund.

Amend Bill, page 132, lines 2 through 17, by striking out all

of said lines and inserting

(e) Transfer.--If funds in the State Racing Fund are

insufficient to fund the costs of the administration and

enforcement of this act, the amount necessary to eliminate the

funding deficiency shall, notwithstanding any other provision of

law, be transferred by the State Treasury from the Race Horse

Development Fund to the State Racing Fund.

Amend Bill, page 133, lines 19 and 20, by striking out

"Department of Revenue " and inserting

commission

Amend Bill, page 133, line 22, by striking out "Department of

Revenue" and inserting

commission

Amend Bill, page 136, line 9, by inserting after "racing "

breeding issues

Amend Bill, page 137, line 9, by striking out "5%" and

inserting

10%

Amend Bill, page 139, line 28, by striking out "Department of

Agriculture" and inserting

commission

Amend Bill, page 140, lines 2 and 3, by striking out

"Department of Agriculture " and inserting

commission

Amend Bill, page 140, line 8, by striking out ", permittee"

Amend Bill, page 140, line 9, by striking out "or permit"

Amend Bill, page 140, line 14, by inserting after "apply"

, unless superseded by the commission's administrative

regulations

Amend Bill, page 141, line 10, by striking out "licensed

2015/90MSP/SB0352A02179 - 19 -

racing entity" and inserting

commission

Amend Bill, page 141, line 12, by striking out "COMMISSION"

and inserting

Department of Agriculture

Amend Bill, page 141, line 16, by inserting after "Act."

Pari-mutuel wagering may not be conducted at a horse race at

a fair of a political subdivision.

Amend Bill, page 141, line 25, by inserting after "including"

, but not limited to,

Amend Bill, page 142, line 10, by striking out "Simulcasting"

and inserting

Intrastate simulcasting

Amend Bill, page 142, line 12, by striking out "racing" and

inserting

horse racing between the licensed racing entities that

conduct live racing

Amend Bill, page 142, line 17, by striking out "The" and

inserting

All

Amend Bill, page 142, line 18, by striking out "are" and

inserting

shall be

Amend Bill, page 142, line 19, by striking out "televised by

simulcasting" and inserting

simulcasted

Amend Bill, page 146, lines 12 through 30; pages 147 and 148,

lines 1 through 30; page 149, lines 1 through 27; by striking

out all of said lines on said pages and inserting

CHAPTER 2-B

LICENSING REQUIREMENTS FOR SECONDARY

PARI-MUTUEL ORGANIZATION

Section 201-B. General license requirements.

2015/90MSP/SB0352A02179 - 20 -

(a) New application.--A person seeking to offer pari-mutuel

wagering and electronic wagering to individuals within this

Commonwealth must apply to the commission for a license by

submitting a completed Initial/Renewal License Application. The

license shall take effect and the secondary pari-mutuel

organization may begin operations after approval by the

commission.

(b) Renewal applications.--A license must be renewed

annually in accordance with this chapter. A renewal application

shall be submitted on the Initial/Renewal License Application on

or before September 1 of the preceding year. If approved by the

commission, a renewal license shall take effect January 1.

Amend Bill, page 149, line 28, by striking out "203-B" and

inserting

202-B

Amend Bill, page 151, lines 3 through 7, by striking out all

of lines 3 through 6 and "(4)" in line 7 and inserting

(3)

Amend Bill, page 151, line 8, by inserting after "license"

and the renewal license

Amend Bill, page 151, lines 8 through 10, by striking out "

A" in line 8, all of line 9 and "commission." in line 10

Amend Bill, page 151, line 13, by striking out "(5)" and

inserting

(4)

Amend Bill, page 151, line 13, by striking out "track the"

and inserting

be reimbursed for any

Amend Bill, page 151, by inserting between lines 14 and 15

(5) Beginning two years following the effective date of

this paragraph, the commission may annually increase a fee,

charge or cost provided for under this section by an amount

not to exceed an annual cost-of-living adjustment calculated

by applying the percentage change in the Consumer Price Index

for All Urban Consumers (CPI-U) for the Pennsylvania, New

Jersey, Delaware and Maryland area for the most recent 12-

month period for which figures have been officially reported

by the United States Department of Labor, Bureau of Labor

Statistics, immediately prior to the date the adjustment is

2015/90MSP/SB0352A02179 - 21 -

due to take effect.

Amend Bill, page 151, line 15, by striking out "204-B" and

inserting

203-B

Amend Bill, page 152, line 3, by striking out "advance

deposit account"

Amend Bill, page 153, line 9, by striking out "advance

deposit account"

Amend Bill, page 153, line 26, by striking out "205-B" and

inserting

204-B

Amend Bill, page 154, line 14, by striking out "206-B" and

inserting

205-B

Amend Bill, page 154, line 24, by striking out "207-B" and

inserting

206-B

Amend Bill, page 154, line 25, by striking out "operations"

and inserting

to operating requirements

Amend Bill, page 155, line 12, by striking out "advance

deposit account"

Amend Bill, page 155, lines 17 and 18, by striking out "

generated by advanced deposit account wagering "

Amend Bill, page 155, line 23, by striking out "licensed

racing entity" and inserting

licensee

Amend Bill, page 155, line 25, by striking out "204-B(a)(4)"

and inserting

203-B(a)(4)

2015/90MSP/SB0352A02179 - 22 -

Amend Bill, page 156, lines 5 through 9, by striking out "in

the jurisdiction where" in line 5, all of lines 6 through 8 and

"this Commonwealth" in line 9 and inserting

by the commission

Amend Bill, page 156, line 26, by inserting after

"commission."

A s econdary pari-mutuel organization must verify that

the account holder does not reside within the primary market

area of a licensed racing entity.

Amend Bill, page 159, line 10, by striking out "208-B" and

inserting

207-B

Amend Bill, page 160, line 14, by striking out "209-B" and

inserting

208-B

Amend Bill, page 160, line 18, by striking out "210-B" and

inserting

209-B

Amend Bill, page 160, line 24, by inserting after "fines"

under section 215-A

Amend Bill, page 160, line 26, by striking out "advanced

deposit account" and inserting

pari-mutuel

Amend Bill, page 160, by inserting after line 30

(3) Upon the finding of a violation by a secondary pari-

mutuel organization of this chapter or of a commission

regulation or order or upon the finding of unlicensed

electronic or advanced deposit account wagering by an

individual or entity, the commission may impose a fine as

authorized under section 215-A.

CHAPTER 2-C

COMPLIANCE

Section 201-C. Tax compliance requirement.

(a) Applicant.--An applicant must be tax compliant to be

eligible for a license or permit issued under this act. Upon

receipt of an application for a license or permit, the

2015/90MSP/SB0352A02179 - 23 -

commission shall request the Department of Revenue to conduct a

tax compliance review of the applicant.

(b) Licensees and permitees.--A licensee or permitee must be

tax compliant to be eligible for renewal of a license or permit

issued under this act. Prior to renewing a license or permit,

the commission shall request the Department of Revenue to

conduct a tax compliance review of the licensee or permitee.

must be tax compliant to be eligible to serve as a commissioner

or to be employed by the commission. Commissioners and

commission employees shall be subject to an annual tax

compliance review to ensure they are tax compliant.

(d) Contractors.--Each contractor of the commission shall be

subject to an annual tax compliance review to ensure that the

contractor is tax compliant.

(e) Review.--The annual tax compliance review under

subsections (c) and (d) must be performed on the dates as

determined by the commission.

(f) Definitions.--For purposes of this section, the

following words and phrases shall have the following meanings:

"Tax compliant." Being current with all applicable

Commonwealth tax filing and reporting obligations for any

applicable tax year and current with payment of any balance of

tax, interest or penalty due the Commonwealth as determined by

the Department of Revenue for an applicable tax year.

"Tax compliance review." The process by which the Department

of Revenue determines whether an individual or entity is tax

compliant.

Amend Bill, page 161, lines 14 and 15, by striking out "and

therapeutic dose allowances"

Amend Bill, page 161, line 15, by inserting after

"allowances. "

In order to properly determine the schedule of drugs and the

tolerance levels under this subsection, the commission may

conduct research or contract with a vendor to conduct the

research.

Amend Bill, page 161, line 15, by striking out "shall" and

inserting

may

Amend Bill, page 161, line 18, by inserting a period after

"experts"

Amend Bill, page 161, lines 18 through 22, by striking out "

2015/90MSP/SB0352A02179 - 24 -

as necessary to develop the approved" in line 18 and all of

lines 19 through 22

Amend Bill, page 162, lines 11 and 12, by striking out "in

consultation with the associations representing the majority of

the horse owners"

Amend Bill, page 164, lines 3 and 4, by striking out "THE

ACTUAL COST OF COLLECTION AND" and inserting

each cost associated with the collection and research of and

Amend Bill, page 164, line 9, by inserting after "IN "

12 equal

Amend Bill, page 167, lines 16 through 24, by striking out

all of said lines

Amend Bill, page 167, line 25, by striking out "8" and

inserting

2015/90MSP/SB0352A02179 - 25 -