2015-2016 Regular Session HB 941 PN 2662 Bill Text (HTM)

PRIOR PRINTER'S NOS. 1244, 2649 PRINTER'S NO. 2662

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

941

Session of

2015

INTRODUCED BY REGAN, MILLARD, MARSHALL, IRVIN, PICKETT,

A. HARRIS, SANKEY, GIBBONS, COHEN, READSHAW, GROVE, MURT,

MOUL, PHILLIPS-HILL AND SAYLOR, APRIL 16, 2015

AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,

DECEMBER 14, 2015

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; 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; in powers and

duties of Pennsylvania Public Utility Commission, providing

for transportation network companies; providing for race

horse industry reform; conferring duties upon the Joint State

Government Commission; making editorial changes; and making

related repeals.

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The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The title of the act of April 9, 1929 (P.L.177,

No.175), known as The Administrative Code of 1929, is amended to

read:

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 transportation network

companies; 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.

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SECTION 1.1. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 309. PENNSYLVANIA GAMING CONTROL BOARD.--(A) NOT

LATER THAN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE

PENNSYLVANIA GAMING CONTROL BOARD SHALL SUBMIT A REPORT TO THE

CHAIRPERSON AND MINORITY CHAIRPERSON OF THE COMMUNITY, ECONOMIC

AND RECREATIONAL DEVELOPMENT COMMITTEE OF THE SENATE AND THE

CHAIRPERSON AND MINORITY CHAIRPERSON OF THE GAMING OVERSIGHT

COMMITTEE OF THE HOUSE OF REPRESENTATIVES ON THE POTENTIAL OF

FANTASY SPORTS AS A GAMBLING PRODUCT IN THIS COMMONWEALTH.

(B) IN COMPILING THE REPORT, THE PENNSYLVANIA GAMING CONTROL

BOARD SHALL CONSIDER AND ADDRESS THE FOLLOWING:

(1) A DEFINITION OF "FANTASY SPORTS."

(2) THE STRUCTURE OF THE DIFFERENT FANTASY SPORTS FORMATS

AND THE UNDERLYING ACTIVITIES THAT MAY BE APPROPRIATE FOR

OVERSIGHT.

(3) FANTASY SPORTS ENTITIES, INCLUDING THE ROLES AND

RELATIONSHIPS OF ANCILLARY FANTASY SPORTS BUSINESSES, INCLUDING

HOST INTERNET WEBSITES, COLLEGIATE AND PROFESSIONAL SPORTS

ORGANIZATIONS AND PERSONS WITH A CONTROLLING INTEREST IN FANTASY

SPORTS ENTITIES.

(4) HOW REGULATION OF FANTASY SPORTS WOULD FIT INTO THE

COMMONWEALTH'S CURRENT GAMBLING LAWS AND POLICIES.

(5) COMPULSIVE AND PROBLEM GAMBLING.

(6) PROTECTION OF MINORS.

(7) MEASURES TO ENSURE THE WELL-BEING AND SAFETY OF PLAYERS.

(8) SAFEGUARDS AND MECHANISMS TO ENSURE THE REPORTING OF

GAMBLING WINNINGS AND FACILITATE THE COLLECTION OF APPLICABLE

FEDERAL AND STATE TAXES IN COMPLIANCE WITH FEDERAL AND STATE

LAW.

(9) RECOMMENDATIONS FOR LEGISLATIVE ACTION.

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(10) ANY OTHER INFORMATION RELATED TO THE CONDUCT AND

OPERATION OF FANTASY SPORTS AS THE BOARD MAY DEEM APPROPRIATE.

Section 1.1 1.2. Section 448(p) of the act, added December

3, 1970 (P.L.834, No.275), is amended to read:

Section 448. Advisory Boards and Commissions.--The advisory

boards and commissions, within the several administrative

departments, shall be constituted as follows:

* * *

(p) The Citizens Advisory Council shall be an independent

advisory council administratively housed within the Department

of Environmental Protection and shall consist of the Secretary

of Environmental [Resources] Protection who shall serve in an ex

officio capacity, six members who shall be appointed by the

Governor, no more than three of whom shall be of the same

political party, six members who shall be appointed by the

President Pro Tempore of the Senate, no more than three of whom

shall be of the same political party, and six members who shall

be appointed by the Speaker of the House of Representatives no

more than three of whom shall be of the same political party.

The appointed members of the council shall be citizens of the

State, who, during their respective terms, shall hold no other

State office to which any salary is attached except that of

membership on the Environmental Quality Board.

The term of office of each appointed member shall be three

years, measured from the third Tuesday of January of the year in

which he takes office, or until his successor has been

appointed; except that in the initial appointments of the

members of the council, the respective appointing authorities

shall appoint two members for terms of one year each, two

members for terms of two years each, and two members for terms

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of three years each.

The Citizens Advisory Council shall include persons

knowledgeable in fields related to the work of the Department of

Environmental Resources such as, but not limited to, ecology,

limnology, toxicology, pharmacology, organiculture, and

industrial technology.

The council shall annually elect one of its appointed members

as chairman and shall elect a secretary who need not be a member

of the council. Meetings of the council shall be held at least

quarterly or at the call of the chairman.

The council shall have the sole power to employ and fix the

compensation of an executive director and such experts,

stenographers, and assistants as may be deemed necessary to

carry out the work of the council, but due diligence shall be

exercised by the council to enlist such voluntary assistance as

may be available from citizens, research organizations, and

other agencies in Pennsylvania or elsewhere, generally

recognized as qualified to aid the council.

Section 1.2 2. Section 614-A(13)(iii) of the act, amended

July 1, 1990 (P.L.277, No.67), is amended to read:

Section 614-A. Liquor Control Board.--The Pennsylvania

Liquor Control Board is authorized to charge fees for the

following purposes and in the following amounts:

* * *

(13) Distillery of historical significance:

* * *

(iii) License fee (prorated quarterly).....

* * *

[5,400.00]

1,200.00

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

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Section 2802.1. Transportation Network Companies.--(a)

Notwithstanding any law to the contrary, a certificate of public

convenience for experimental service granted by the Public

Utility Commission to allow for the provisions of service by a

transportation network company shall continue in effect under

the terms and conditions of the commission's orders granting the

certificate of public convenience until the effective date of

legislation adopted to regulate the provisions of these

services.

(b) A transportation network company operating pursuant to a

certificate of public convenience issued by the commission may

operate in all municipalities in this Commonwealth, including a

city of the first class.

network company under this section shall be subject to the terms

and conditions of the certificate of public convenience for

experimental service issued by the commission, including the

authority to impose penalties or suspend, revoke or rescind a

license for failure to comply with the provisions of the

certificate.

(d) A parking authority of a city of the first class may

adopt reasonable regulations relating to enforcement under this

section that do not impose additional burdens on the

transportation network company and are consistent with those

imposed by the commission on transportation network companies

under the certificate of public convenience. A transportation

network company driver operating in a city of the first class

may not solicit or accept a prearranged ride at any of the

following locations:

(1) A designated taxi stand, no stopping or standing zone or

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other area where a personal vehicle may not enter at an

international airport owned by the city of the first class and

located in whole or in part in the city of the first class.

(2) A designated taxi stand, no stopping or standing zone or

other area where a personal vehicle may not enter at a train

station owned by AMTRAK located in the city of the first class.

(3) Organized lines of taxis at hotels utilized to provide

services to patrons and visitors at the hotel.

(4) The following shall apply to a city of the first class:

(i) The authority may issue an order to a transportation

network company requiring disqualification of a driver from

being a transportation network company driver if during any

three-year period the driver commits five or more violations of

the regulations promulgated under this section.

(ii) An authority directive to the transportation network

company to disqualify a driver from being a transportation

network company driver may occur only after the filing and

adjudication of a formal complaint pursuant to 52 Pa. Code Ch.

1005 (relating to formal proceedings) , by which the

transportation network company shall be afforded full due

process, including notice and opportunity to be heard.

(iii) The authority may adopt regulations to allow

reinstatement of a driver following an appropriate

disqualification period and compliance with any conditions

imposed by the authority.

(iv) The authority may only confiscate the vehicle of a

driver if the driver continues to provide service while

disqualified or following suspension or revocation of a

transportation network company's license by the commission.

(e) A transportation network company operating in a city of

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the first class shall pay to the city's parking authority an

amount equal to one per cent (1%) of the gross receipts from all

fares charged to all passengers for prearranged rides that

originate in the city of the first class. The amount assessed

shall be remitted on a quarterly basis and deposited into a

restricted receipts account in the State Treasury. The Treasurer

shall, beginning January 1, 2016, distribute sixty-six and

sixty-seven hundredths per cent (66.67%) to a school district of

the first class and thirty-three and three tenths per cent

(33.3%) to the parking authority of the city of the first class

on a quarterly basis.

(f) For the purpose of this section, a transportation

network company shall mean a motor carrier service that uses an

online application, software or Internet website to provide

prearranged rides to passengers.

(g) This section shall expire December 31, 2016. (RESERVED).

Section 4. The act is amended by adding an article to read:

ARTICLE XXVIII-D

RACE HORSE INDUSTRY REFORM

(a) Preliminary Provisions

Section 2801-D. Definitions.

The following words and phrases when used in this article

shall have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

"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

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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

article. 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,

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 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.

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

member of the commission in accordance with section 2811-D(b).

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"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

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.

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"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

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

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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

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

article.

"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 article other than the racetrack where live racing is

conducted .

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

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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

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

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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 article, the

term "racetrack enclosure," with respect to each licensed 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 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

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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

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.

(b) Racing Oversight

Section 2811-D. State Horse Racing Commission.

(a) Establishment.--The State Horse Racing Commission is

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established as a commission within the Department of Agriculture

to independently regulate the operations of horse racing, the

conduct of pari-mutuel wagering and the promotion and marketing

of horse racing in this Commonwealth in accordance with this

article.

(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.

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(iv) The Minority Leader of the House of

Representatives.

(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 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

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officer as defined in 4 Pa.C.S. § 1512 (relating to

financial and employment interests) in this Commonwealth

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 article

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

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independent contractor.

(vii) At the time of appointment and annually

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 , licensed gaming 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 , licensed gaming 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

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racing entity, or an affiliate, intermediary, subsidiary

or holding company thereof, for a period of two years

from the termination of term of office.

(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

20150HB0941PN2662 - 20 -

future.

(xiv) The following shall apply to an employee of

the commission, who is not subject to a collective

bargaining agreement, whose duties substantially involve

licensing, enforcement, development of law, promulgation

of regulations or development of policy, relating to

horse racing under this article or who has other

discretionary authority which may affect or influence the

outcome of an action, proceeding or decision under this

article, 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

company of an applicant or a licensed racing entity.

(B) The individual may not, for a period of two

years following termination of employment, appear

before the commission in a hearing or proceeding or

participate in activity on behalf of any applicant,

licensee or licensed racing entity or on behalf of an

affiliate, intermediary, subsidiary or holding

company of any applicant, licensee or licensed racing

entity.

employee subject to the jurisdiction of the

Pennsylvania Supreme Court under section 10(c) of

Article V of the Constitution of Pennsylvania.

(xv) Nothing under subparagraph (xiv) shall prevent

a current or former employee of the commission from

20150HB0941PN2662 - 21 -

appearing before the commission in a hearing or

proceeding as a witness or testifying as to a fact or

information.

(xvi) The State Ethics Commission shall issue a

written determination of whether a person is subject to

subparagraph (xiv) upon the written request of the person

or the person's employer or potential employer. A person

that relies in good faith on a determination issued under

this paragraph shall not be subject to any penalty for an

action taken, if all material facts set forth in the

request for the determination are correct.

(xvii) The State Ethics Commission shall publish a

list of all employment positions within the commission

whose duties would subject the individuals in those

positions to the provisions of subparagraph (xiv). The

commission shall assist the State Ethics Commission in

the development of the list, which shall be published by

the State Ethics Commission in the Pennsylvania Bulletin

biennially and posted by the commission on the

commission's Internet website. Upon request, employees of

the commission shall have a duty to provide the State

Ethics Commission with adequate information to accurately

develop and maintain the list. The State Ethics

Commission may impose a civil penalty under 65 Pa.C.S. §

1109(f) (relating to penalties) upon an individual who

fails to cooperate with the State Ethics Commission under

this subparagraph. An individual who relies in good faith

on the list published by the State Ethics Commission

shall not be subject to any penalty for a violation of

subparagraph (xiv).

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(xviii) A commissioner may not solicit, request,

suggest or recommend the employment by the commission of

an immediate family member.

(xix) If a commissioner violates any provision of

this section, the appointing authority may remove the

person from the commission. A commissioner removed under

this paragraph shall, for a period of five years

following removal, be prohibited from future appointment

to the commission and shall be prohibited from applying

for a license , permit or other authorization under this

article and from becoming an independent contractor with

the commission.

(xx) Except for a commissioner appointed under

paragraph (1), a commissioner or employee of the

commission may not directly or indirectly have an

ownership interest in a race horse which is entered in a

horse race meeting in this Commonwealth.

(7) A commissioner shall not be personally liable for

any of the following:

(i) Obligations of the commission.

(ii) Actions which were within the scope of their

office and made in good faith.

(b.1) Initial appointments to commission.--

(1) Appointees initially appointed under subsection (b)

shall serve an initial term of two years and until their

successors are appointed and qualified.

(2) An appointment to fill a vacancy created by a

commissioner appointed in accordance with paragraph (1) shall

be for the remainder of the unexpired term.

(b.2) Terms of office.--Upon the expiration of a term of a

20150HB0941PN2662 - 23 -

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commissioner appointed under subsections (b) and (b.1), the

following shall apply:

(1) The term of office of a gubernatorial appointee

shall be three years and until a successor is appointed and

qualified.

(2) The term of office of a legislative appointee shall

be two years and until a successor is appointed and

qualified.

(3) A legislative appointee shall serve no more than

three full consecutive terms.

(4) A gubernatorial appointee shall serve no more than

two full consecutive terms.

(5) An appointment to fill a vacancy shall be for the

remainder of the unexpired term.

(6) A commissioner appointed to fill a vacancy under

paragraph (3) may serve three full terms following the

expiration of the term related to the vacancy.

(7) A commissioner appointed to fill a vacancy under

paragraph (4) may serve two full terms following the

expiration of the term related to the vacancy.

of the commission.

(c.1) Compensation.--Commissioners shall be reimbursed for

documented expenses incurred in the performance of their

official duties and except for commissioners appointed under

subsection (b)(3), commissioners shall be paid $300 $150 per

diem.

(c.2) Meetings.--The commission shall meet at least once a

month and at other times as the commission chairperson deems

necessary. Public notice of the time and place of meetings of

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the commission shall be given in accordance with 65 Pa.C.S. Ch.

7 (relating to open meetings).

(d) Office of Horse Racing.--There is hereby established

within the commission an Office of Horse Racing.

(1) The office shall be comprised of the following:

(i) The Bureau of Thoroughbred Horse Racing shall

have oversight over the conduct of thoroughbred horse

racing in this Commonwealth.

(ii) The Bureau of Standardbred Horse Racing shall

have oversight over the conduct of standardbred horse

racing in this Commonwealth.

(2) There shall be a Director of the Bureau of

Thoroughbred Horse Racing and a director of the Bureau of

Standardbred Horse Racing to serve and report to the

commission. The director of each bureau shall not be

supervised by the Department of Agriculture. The commission

shall assign the directors duties and responsibilities as

required to fulfill the commission's obligations under this

ARTICLE or any other 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. The director of each bureau established in

this section must meet all of the following requirements:

(i) Has either:

(A) been certified as a racing official; or

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

management of a licensed racing entity or equivalent

racing experience.

(ii) Any other criteria established by the

20150HB0941PN2662 - 25 -

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commission.

(3) Each bureau established under this subsection shall

have the following powers and duties:

(i) Evaluate and review all applicants and

applications for a thoroughbred horse racing or

standardbred horse racing license. A bureau under this

section shall be prohibited from disclosing any portion

of an evaluation to a commissioner prior to the decision

relating to the applicant's suitability for licensure by

the commission.

(ii) Inspect and monitor licensees and other persons

regulated under this article for noncriminal violations,

including potential violations referred to either bureau

by the commission or other person.

(iii) Monitor horse racing operations to ensure

compliance with this article.

(iv) Inspect and examine licensed racing entities

and racetrack facilities.

(A) Inspections may include the review and

reproduction of any document or record.

(B) Examinations may include the review of

accounting, administrative and financial records,

management control systems, procedures and other

records.

(v) Refer possible criminal violation to law

enforcement.

(vi) Cooperate in the investigation and prosecution

of any criminal violation.

(vii) Issue administrative subpoenas to effectuate

an inspection and review under this paragraph, administer

20150HB0941PN2662 - 26 -

oaths and take testimony as necessary for the

administration of this article.

(e) Jurisdiction.--The commission shall have jurisdiction

and regulatory authority over the following:

(1) Pari-mutuel wagering and other horse racing

activities in this Commonwealth.

(2) A licensed person engaged in pari-mutuel horse

racing activities.

(3) Out-of-competition drug testing, which shall include

the random drug testing of any horse entered in a race,

notwithstanding the physical location of the horse, stabled

on the grounds or shipped into a licensed racing entity's

facility.

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

(f) Voting.--

(1) Except as otherwise provided in this subsection,

actions of the commission shall be subject to a simple

majority vote of the commission.

(2) A qualified majority vote consisting of the two

commissioners appointed under subsection (b)(1)(i) and (ii)

and as many votes of the remaining voting commissioners as

necessary to constitute a majority of those commissioners

voting shall be required to:

(i) Approve, issue, deny or condition a license to

conduct thoroughbred horse racing RACE meetings under

section 2818-D.

(ii) Adopt regulations governing thoroughbred horse

racing RACE meetings and regulations governing medication

under this section.

(iii) Employ a director of the Bureau of

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Thoroughbred Horse Racing under subsection (d)(2).

(3) A qualified majority vote consisting of the two

commissioners appointed under subsection (b)(1)(iii) and (iv)

and as many votes of the remaining voting commissioners as

necessary to constitute a majority of those commissioners

voting shall be required to:

(i) Approve, issue, deny or condition a license to

conduct standardbred horse racing RACE meetings under

section 2818-D.

(ii) Adopt rules and regulations governing

standardbred horse racing RACE meetings and regulations

governing medication under this section.

(iii) Employ a director of the Bureau of

Standardbred Horse Racing under subsection (d)(2).

(4) Commissioners appointed under subsection (b)(1)(i)

and (ii) shall be disqualified and must abstain from voting

on any matter under paragraph (3).

(5) Commissioners appointed under subsection (b)(1)(iii)

and (iv) shall be disqualified and must abstain from voting

on any matter under paragraph (2).

(6) If one or more appointees under subsection (b)(1) is

not participating in voting on any matter upon which they are

otherwise eligible to vote under paragraph (2) or (3), the

qualified majority shall consist of the remaining appointee

under the respective subparagraph of subsection (b)(1)

pursuant to which the nonparticipating commissioner has been

appointed, if any, and as many commissioners as necessary to

constitute a majority of those commissioners voting.

(g) Records.--The commission shall maintain at its office

the following:

20150HB0941PN2662 - 28 -

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(1) All documents, digital or nondigital, provided to or

filed with the commission relating to the regulation of horse

racing and pari-mutuel wagering under this article. The

commission may accept digital signatures on documents

provided or filed and documents may be designated as

confidential in accordance with commission policy.

(2) A docket setting forth the names of all stockholders

in a licensed racing entity. The docket shall be available

for public inspection during normal business hours of the

commission.

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

(4) A complete record of proceedings of the commission

relating to horse racing and pari-mutuel wagering.

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

(1) All rules and regulations promulgated under the

former act of December 11, 1967 (P.L.707, No.331), referred

to as the Pennsylvania Thoroughbred Horse Racing Law, or the

former act of December 22, 1959 (P.L.1978, No.728), referred

to as the Pennsylvania Harness Racing Law, shall remain in

effect except to the extent that they are in direct conflict

with this article. The commission may adopt, amend, revise or

alter the rules and regulations as the commission deems

necessary.

(2) The commission shall promulgate rules and

regulations necessary for the administration and enforcement

of this article. Except as provided in this paragraph and

paragraph (3), regulations shall be promulgated in accordance

with law.

(3) In order to facilitate the prompt implementation of

this article, regulations promulgated by the commission shall

20150HB0941PN2662 - 29 -

be deemed temporary regulations which shall not expire for a

period of three years following publication. Temporary

regulations shall not be subject to:

(i) Sections 201, 202, 203, 204 and 205 of the act

of July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(ii) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

(iii) Sections 204(b) and 301(10) of the act of

October 15, 1980 (P.L.950, No.164), known as the

Commonwealth Attorneys Act.

(4) The commission's authority to promulgate temporary

regulations under paragraph (3) shall expire three years

after the effective date of this section. Regulations adopted

after this period shall be promulgated as provided by law.

(i) Application.--The commission shall develop an

application for applicants seeking a license to conduct horse

racing pursuant to this article.

(j) Licenses.--Each license to conduct horse racing or any

other activity under this article issued prior to January 1,

2017, shall remain in effect for the remainder of the term for

which the license was issued unless revoked or suspended.

Beginning January 1, 2017, a license shall be renewed or a new

license shall be issued in accordance with this article.

(k) Report of commission.--Twelve months after the effective

date of this section and every year on that date thereafter, the

commission, through the Department of Agriculture, shall issue a

report to the Governor and each member of the General Assembly

on the general operation of the commission and each licensee's

performance, including number and win per race and total gross

20150HB0941PN2662 - 30 -

revenue at each facility of a licensed racing entity during the

previous year, all taxes, fees, fines and other revenues

collected and, where appropriate, disbursed, the costs of

operation of the commission, all hearings conducted and the

results of the hearings and other information that the

commission deems necessary and 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.

(l) Record of proceedings.--The commission shall cause to be

made and kept a record of all proceedings held at public

meetings of the commission. A verbatim transcript of those

proceedings shall be prepared by the commission upon the request

of any person and the payment by that person of the costs of

preparation.

(m) Public records.--The commission shall annually post on

its Internet website, a list of all the itemized expenses of

employees and commissioners that were or are to be reimbursed

from the State Racing Fund. The list shall identify the nature

of the expense, the employee, member or the agency and employee

of the agency to which an expense is attributable. By October 1

of each year, a final report of all expenses described in this

subsection for the preceding fiscal year shall be posted on the

commission's Internet website and shall be submitted to the

Appropriations Committee of the Senate, the Agriculture and

Rural Affairs Committee of the Senate, the Appropriations

Committee of the House of Representatives and the Agriculture

and Rural Affairs Committee of the House of Representatives.

Information posted on the Internet website pursuant to this

20150HB0941PN2662 - 31 -

subsection shall be financial records for the purposes of and

subject to redaction under the Right-to-Know Law.

(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

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.

Section 2812-D. Additional powers of commission.

The commission shall regulate horse racing at which pari-

mutuel wagering is conducted and approve the number of racing

days allocated to each licensed racing entity. In addition to

any other powers of the commission:

(1) The commission shall promulgate regulations

regarding medication rules as required under Subarticle E.

(2) The following shall apply:

(i) The commission shall require an applicant under

this article 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

20150HB0941PN2662 - 32 -

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 article.

(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 article 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 ARTICLE .

(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. Two

years following the effective date of this section, the

commission may adopt regulations to annually increase any

fee, charge or cost authorized under this article.

(4) The commission or designated employee of the

commission shall have the power to administer oaths and

20150HB0941PN2662 - 33 -

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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 related to regulation and enforcement of

horse racing under this article.

(5) The commission's consideration and resolution of all

license or other regulatory administrative actions shall be

conducted in accordance with 2 Pa.C.S. (relating to

administrative law and procedure) or with procedures adopted

by order of the commission. Notwithstanding 2 Pa.C.S. §§ 504

(relating to hearing and record) and 505 (relating to

evidence and cross-examination), the commission may adopt

procedures to provide parties before it with a documentary

hearing and may resolve disputed material facts without

conducting an oral hearing where constitutionally

permissible.

(6) The commission may adopt national standards from

other racing jurisdictions or commission-approved trade

organizations to establish:

(i) uniform drug threshold levels;

(ii) consistent sanctions for drug testing

violations; and

(iii) a system to monitor advanced deposit wagering

and online pari-mutuel wagering company activities.

(7) The commission may issue grants from the annual

appropriations to race horse rescue and rehabilitation

programs operating within this Commonwealth.

(8) The commission shall direct and oversee that each

licensed racing entity's racetrack surface is maintained in

such a way as to maximize the safety of the horse, jockey or

20150HB0941PN2662 - 34 -

driver. The commission may develop guidelines to carry out

this paragraph and may contract with, hire or otherwise

consult with racetrack surface experts to carry out the

provisions of this section .

(9) The State Horse Racing Commission shall have

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 in the act of July 8, 1986

(P.L.437, No.92), known as the Pennsylvania Agricultural Fair

Act.

Section 2813-D. Budget.

Beginning July 1, 2016, the commission and the Department of

Agriculture shall annually submit a budget request to the

Secretary of the Budget in accordance with the provisions

contained in section 610, consisting of amounts to be

appropriated from the State Racing Fund, the Pennsylvania Race

Horse Development Fund and the General Fund to administer and

enforce this article and for the promotion of horse racing.

Beginning July 1, 2016, and a nnually thereafter, 1% of the

previous fiscal year's deposits into the Pennsylvania Race Horse

Development Fund shall be transfered TRANSFERRED from the

Pennsylvania Race Horse Development Fund to the State Racing

Fund to provide for the promotion of horse racing.

Section 2814-D. Location.

After January 1, 2017, a licensed racing entity shall conduct

a horse race meeting at the location designated and approved by

the commission.

Section 2815-D. Number of licensed racing entities.

(a) Standardbred horse racing.--No more than five persons

20150HB0941PN2662 - 35 -

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shall be licensed to conduct a race horse HORSE RACE meeting. No

person licensed under this article to conduct standardbred horse

racing with pari-mutuel wagering shall be licensed to conduct

thoroughbred horse racing with pari-mutuel wagering.

(b) Thoroughbred horse racing.--No more than six persons

shall be licensed by the commission to conduct a race horse

HORSE RACE meeting. No person licensed under this article to

conduct thoroughbred horse racing with pari-mutuel wagering

shall be licensed to conduct standardbred horse racing with

pari-mutuel wagering.

Section 2816-D. Department of Revenue.

The Department of Revenue shall provide financial

administration of pari-mutuel wagering under this article in

accordance with Department of Revenue regulations and

regulations of the commission. The Department of Revenue shall

prescribe the form and system of accounting to be used by

licensed racing entities, and may access and examine records,

equipment and other information relating to pari-mutuel

wagering.

Section 2817-D. Allocation of racing days.

(a) General rule.--

(1) Horse racing shall be conducted consistent with 4

Pa.C.S. § 1303 (relating to additional Category 1 slot

machine license requirements).

(2) The provisions of REQUIRED RACING DAYS UNDER this

section and 4 Pa.C.S. § 1303 (a)(2) and (b) may be waived or

modified by the commission if the waiver or modification has

been agreed to by the horsemen's organization and the

licensed racing entity at the racetrack where the racing days

are to be scheduled or raced.

20150HB0941PN2662 - 36 -

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(3) The provisions of 4 Pa.C.S. § 1303(d) shall not

apply if the reason for noncompliance with that section by a

licensed racing entity is the cancellation of racing days due

to the commission's inability to properly regulate and

oversee the conduct of horse racing in this Commonwealth due

to inadequate funding.

(b) Certification.--The commission shall submit to the

Secretary of Revenue the approved number of racing days for each

licensed racing entity, including the following information:

(1) the names and addresses of the licensed racing

entity;

(2) the names and addresses of the owners, officers and

general managers of the licensed racing entity; and

(3) any other information the commission deems

appropriate.

(1) If a racing day is canceled by a licensed racing

entity for reasons beyond the licensed racing entity's

control, the commission shall grant the licensed racing

entity the right to conduct that racing day in the same or

the next ensuing calendar year, if schedules permit.

(2) A director of a bureau established under section

2811-D, after consultation with the licensed racing entity

and the horsemen's organization at the racetrack , may cancel

a race if it is determined that fewer than six horses have

entered the race.

Section 2818-D. Licenses for horse race meetings.

(a) Procedure and terms.--

(1) After January 1, 2017, a person seeking a license to

conduct horse race meetings at which pari-mutuel wagering is

20150HB0941PN2662 - 37 -

permitted or seeking to renew the license, shall file an

application or renewal application with the commission in the

manner prescribed by the commission. A license to conduct

horse race meetings shall be issued for a period of three

years.

(2) A licensed racing entity shall have the privilege to

conduct a horse race meeting at which pari-mutuel wagering is

permitted. A license to conduct a horse race meeting shall

not be a property right and may not be used as collateral or

be encumbered.

(3) The commission may revoke or suspend the license of

a licensed racing entity if the commission finds that the

licensed racing entity, its owners, officers, managers or

agents, have not complied with this article and regulations

promulgated in accordance with this article.

(4) A licensed racing entity may not transfer a license

without the approval of the commission.

(b) Conditions.--Each horse racing license shall be issued

and remain in effect if the licensed racing entity complies with

each condition, rule and regulation of the commission and the

provisions of this article, including the following conditions:

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

is conducted shall be regulated by the commission.

(2) The conduct of pari-mutuel wagering shall also be

regulated by the Department of Revenue.

(3) The licensed racing entity shall print in its racing

programs the procedure for filing a complaint with the

commission.

meetings shall be in the form prescribed by the commission and

20150HB0941PN2662 - 38 -

shall contain information as the commission may require.

(d) Fee.--An applicant or licensee seeking to conduct a

horse race meeting or seeking renewal of a license, shall pay to

the commission a fee of $50,000. Notwithstanding the foregoing,

a licensed racing entity that holds more than one horse race

meeting license shall pay no more than $50,000 upon renewal of

the licenses. The license or renewal fee shall be deposited into

the State Racing Fund.

(e) Action on licenses.--The following shall apply:

(1) The commission shall be prohibited from issuing a

license to conduct a horse race meeting at which pari-mutuel

wagering is permitted to an individual or applicant or an

owner, officer, director or manager of the applicant who has

been convicted of:

(i) A felony in any jurisdiction.

(ii) A misdemeanor gambling offense in any

jurisdiction, unless 15 years has elapsed from the date

of conviction.

(iii) Fraud or misrepresentation in any jurisdiction

related to horse racing or horse breeding, unless 15

years has elapsed from the date of conviction.

(iv) An offense under 18 Pa.C.S. § 5511 (relating to

cruelty to animals).

(v) An offense related to fixing or rigging horse

races, including 18 Pa.C.S. § 4109 (relating to rigging

publicly exhibited contest) or 7102 (relating to

administering drugs to race horses), or any similar crime

in another jurisdiction, unless the conviction has been

overturned on appeal under the laws of the jurisdiction

of the original finding or a pardon has been issued.

20150HB0941PN2662 - 39 -

(2) Following expiration of any period applicable to an

applicant under paragraph (1)(ii) or (iii), in determining

whether to issue a horse racing license to an applicant, the

commission shall consider the following factors:

(i) The individual or a principal of the applicant's

position with the applicant.

(ii) The nature and seriousness of the offense or

conduct.

(iii) The circumstances under which the offense or

conduct occurred.

(iv) The age of the applicant when the offense or

conduct occurred.

(v) Whether the offense or conduct was an isolated

or a repeated incident.

(vi) Any evidence of rehabilitation, including good

conduct in the community, counseling or psychiatric

treatment received and the recommendations of persons who

have substantial contact with the applicant.

(3) If, in the judgment of the commission, the applicant

has demonstrated by clear and convincing evidence that the

participation of the applicant in horse racing or related

activities is not:

(i) inconsistent with the public interest or best

interests of horse racing;

(ii) interfering with the effective regulation of

horse racing; or

(iii) creating or enhancing the danger of

unsuitable, unfair or illegal practices, methods or

activities in the conduct of horse racing.

(f) Denial, suspension or revocation.--The commission may

20150HB0941PN2662 - 40 -

deny an application for a license or revoke, suspend or fail to

renew the license of any applicant or licensed racing entity, if

the commission finds by a preponderance of the evidence that:

(1) The applicant or licensed racing entity, or any of

its owners, officers, director, managers, employees or

agents:

(i) Has not complied with the conditions, rules,

regulations and provisions of this article and that it

would be in the public interest, convenience or necessity

to deny, revoke, suspend or not renew the license.

(ii) Has been convicted of a violation or attempt to

violate a horse racing law, rule or regulation of a horse

racing jurisdiction.

(iii) Has furnished the commission with false or

misleading information relating to the application or

license renewal.

(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.

(2) The applicant or licensed racing entity does not

have the use of a racetrack or racetrack enclosure in

accordance with the provisions of 4 Pa.C.S. Pt. II (relating

to gaming).

(3) The licensed racing entity has commingled horsemen's

organization funds in violation of section 2845-D(c) or has

refused to place on deposit a letter of credit under section

20150HB0941PN2662 - 41 -

2846-D.

(4) The commission determines that the licensed racing

entity has failed to properly maintain its racetrack and

racetrack enclosure in good condition pursuant to this

article or to provide adequate capital improvements to the

racetrack and racetrack enclosure as required under this

article and 4 Pa.C.S. § 1404 (relating to distributions from

licensee's revenue receipts).

(5) The licensee has been convicted in any jurisdiction

of an offense related to fixing or rigging horse races,

including 18 Pa.C.S. § 4109 or 7102, or any similar crime in

another jurisdiction, unless the conviction has been

overturned on appeal under the laws of the jurisdiction of

the original finding or a pardon has been issued.

(g) Cessation.--If a revocation or failure to renew a

license under subsection (e) occurs, the licensee's

authorization to conduct previously approved activity shall

immediately cease, subject to 2 Pa.C.S. (relating to

administrative law and procedure). In the case of a suspension,

the licensee's authorization to conduct previously approved

activity shall immediately cease until the commission has

notified the licensee that the suspension is no longer in

effect. After request for a hearing by a licensee, the

commission may grant a supersedeas, pending the final

determination of the suspension.

(h) Renewal.--A horse race meeting license shall be renewed

every three years upon application and, except as provided for

under subsection (a)(4), shall not be transferred. Renewals of

horse race meeting licenses shall not be granted automatically.

(i) Conditional licenses.--Pending a final determination

20150HB0941PN2662 - 42 -

under this section, the commission may issue a conditional

license upon the terms and conditions as are necessary to

effectuate the provisions of this article.

(j) Compliance.--Nothing in this section shall be construed

to relieve a licensed racing entity of its duty to comply with

the requirements of 4 Pa.C.S. Pt. II.

Section 2819-D. Code of conduct.

(a) Scope.--The commission may adopt a comprehensive code of

conduct applicable to commissioners, employees of the

commission, independent contractors and the immediate family of

the commissioners, employees and independent contractors to

enable them to avoid any perceived or actual conflict of

interest and to promote public confidence in the integrity and

impartiality of the commission.

(b) Restrictions.--In addition to the other prohibitions

contained in this chapter AR TICLE , a commissioner shall:

(1) Not accept any discount, gift, gratuity,

compensation, travel, lodging or other thing of value,

directly or indirectly, from any applicant , licensed racing

entity, affiliate, subsidiary or intermediary of an applicant

or other licensee.

(2) Disclose a conflict of interest and recuse himself

from any hearing or other proceeding in which the

commissioner's objectivity, impartiality, integrity or

independence of judgment may be reasonably questioned due to

the commissioner's relationship or association with a party

connected to any hearing or proceeding or a person appearing

before the commission.

(3) Refrain from any financial or business dealing which

would tend to reflect adversely on the commissioner's

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objectivity, impartiality or independence of judgment.

(4) Avoid impropriety and the appearance of impropriety

at all times and observe standards and conduct that promote

public confidence in the oversight of horse racing.

(5) Comply with any other laws, rules or regulations

relating to the conduct of a commissioner.

(6) EXCEPT FOR A COMMISSIONER APPOINTED UNDER SECTION

2811-D(B)(3), NOT HOLD OR CAMPAIGN FOR PUBLIC OFFICE, HOLD AN

OFFICE IN ANY POLITICAL PARTY OR POLITICAL COMMITTEE AS

DEFINED IN 4 PA.C.S. § 1513(D) (RELATING TO POLITICAL

INFLUENCE), CONTRIBUTE TO OR SOLICIT CONTRIBUTIONS TO A

POLITICAL CAMPAIGN, POLITICAL PARTY, POLITICAL COMMITTEE OR

CANDIDATE, PUBLICLY ENDORSE A CANDIDATE OR ACTIVELY

PARTICIPATE IN A POLITICAL CAMPAIGN.

(d) Ex parte communications.--

(1) A commissioner may not engage in any ex parte

communication with any person.

(2) If a commissioner received or engaged in an ex parte

communication, a commissioner shall inform the director of

the appropriate bureau who shall notify all parties directly

affected by the anticipated vote or action of the

commissioner related to the ex parte communication of the

substance of the communication and provide the parties with

an opportunity to respond.

(3) A commissioner who engaged in or received an ex

parte communication shall disqualify himself from the hearing

or proceeding related to the ex parte communication if the

context and substance of the communication creates

substantial reasonable doubt as to a commissioner's ability

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to act objectively, independently or impartially.

(4) A commissioner who engaged in or received an ex

parte communication and elects not to disqualify himself from

the hearing or proceeding shall state the reasons for not

disqualifying himself on the record prior to the commencement

of the hearing or proceeding.

(5) If a commissioner disqualifies himself under this

subsection, a supermajority QUALIFIED MAJORITY vote under

this article shall consist of the remaining commissioners.

(6) Failure of a commissioner who received or engaged in

an ex parte communication to disqualify himself under this

subsection shall be grounds for appeal to a court of

competent jurisdiction if the commission action being

appealed could not have occurred without the participation of

the commissioner.

(7) This subsection shall not preclude a commissioner

from consulting with other commissioners individually if the

consultation complies with 65 Pa.C.S. Ch. 7 (relating to open

meetings) or with commission employees or independent

contractors whose functions are to assist the commission in

carrying out its adjudicative functions.

Section 2820-D. Financial interests.

No director, owner, officer, manager or employee of an

applicant or licensed racing entity or their immediate family

shall accept gifts from breeders, owners, trainers or other

individuals who participate in the conduct of horse racing in

this Commonwealth.

Section 2821-D. Officials at horse race meetings.

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

each racetrack employee whose duties include the enforcement of

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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 article, 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 2822-D. 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.

20150HB0941PN2662 - 46 -

(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

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

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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

20150HB0941PN2662 - 48 -

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.

(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

20150HB0941PN2662 - 49 -

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.

Section 2823-D. Occupational licenses for individuals.

(a) General rule.--The commission shall develop a licensing ,

permitting or other classification system for the regulation of

RACING vendors, trainers, jockeys, drivers, horse owners,

backside area employees and other individuals participating in

horse racing and all other persons required to be licensed or

permitted as determined by the commission. The license shall not

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be a property right.

(b) Fee.--The commission shall fix and may establish classes

for application fees to be paid by individuals. A license or

permit fee shall not exceed $500. All fees shall be paid to the

commission and deposited into the State Racing Fund.

shall be in the form and contain the information as the

commission may require.

(d) Renewal.--All licenses shall be subject to renewal every

three years upon application and review. Nothing in this article

shall be construed to relieve a licensee of the affirmative duty

to notify the commission of any changes relating to the status

of its license or to any other information contained in the

application materials on file with the commission. The

application for renewal shall be submitted at least 60 days

prior to expiration of the license and shall include an update

of the information contained in the initial application and any

prior renewal applications and the payment of any renewal fee

required by the commission. A license for which a completed

renewal application and fee, if required, has been received by

the commission shall continue in effect unless and until the

commission sends written notification to the holder of the

license that the commission has denied the renewal of the

license.

(e) Licenses.--The commission may issue any of the

following:

(1) A temporary license for four months within a 12-

month period pending a final determination.

(2) A conditional license upon the terms and conditions

as necessary to administer this article.

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(f) Processing and issuance.--The commission shall adopt

regulations to fix the manner by which licenses are processed

and issued.

(g) Action on applications.-- The following shall apply:

(1) The commission may not issue a license under this

section to an individual who has been convicted in a

jurisdiction of a felony offense, a misdemeanor gambling

offense or a fraud or misrepresentation in connection with

horse racing or breeding, unless 15 years has passed from the

date of conviction of the offense.

(2) Following expiration of a period applicable to an

applicant under paragraph (1), in determining whether to

issue a license or permit to an applicant, the commission

shall consider the following factors:

(i) The nature of the applicant's involvement with

horse racing.

(ii) The nature and seriousness of the offense or

conduct.

(iii) The circumstances under which the offense or

conduct occurred.

(iv) The age of the applicant when the offense or

conduct occurred.

(v) Whether the offense or conduct was an isolated

or a repeated incident.

(vi) Any evidence of rehabilitation, including good

conduct in the community, counseling or psychiatric

treatment received and the recommendations of persons who

have substantial contact with the applicant.

(g.1) Denial.--The commission may deny an application for a

license or permit or suspend, revoke or refuse to renew a

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license or permit issued under this section if it determines

that the applicant , OR licensee or permittee meets any of the

following:

(1) (Reserved).

(2) Has been convicted of any violation or attempts to

violate any law, rule or regulation of horse racing in any

jurisdiction.

(3) Has been convicted of an offense under 18 Pa.C.S. §

5511 (relating to cruelty to animals).

(4) Has violated a rule, regulation or order of the

commission.

(5) Has been convicted in any jurisdiction of an offense

related to fixing or rigging horse races, including 18

Pa.C.S. § 4109 (relating to rigging publicly exhibited

contest) or 7102 (relating to administering drugs to race

horses), or any similar crime in any other jurisdiction,

unless the conviction has been overturned on appeal under the

laws of the jurisdiction of the original finding or a pardon

has been issued.

(6) Has not demonstrated by clear and convincing

evidence that the applicant or licensee:

(i) Is a person of good character, honesty and

integrity.

(ii) Is a person whose prior activities, criminal

record, if any, reputation, habits and associations:

(A) Do not pose a threat to the public interest

or the effective regulation and control of horse

racing.

(B) Do not create or enhance the danger of

unsuitable, unfair or illegal practices, methods and

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activities in the conduct of horse racing or the

carrying on of the business and financial

arrangements incidental to the conduct of horse

racing.

(h) Inspection.--The commission shall have the right to

inspect all contracts directly affecting the administration of

the racing product and wagering activities between a secondary

pari-mutuel organization, licensed racing entities and RACING

vendors for goods and services. The commission shall adopt

regulations to require RACING vendors to disclose all principal

owners and officers and a description of their interests in the

vendors' businesses. Failure to disclose this information shall

constitute grounds to deny, to revoke or to suspend any RACING

vendor's license issued under this article.

(i) Revocation or failure to renew.--In the event of a

revocation or failure to renew, the licensee's authorization to

conduct previously approved activity shall immediately cease and

all fees paid in connection therewith shall be deemed to be

forfeited. In the event of a suspension, the applicant's

authorization to conduct the previously approved activity shall

immediately cease until the commission has notified the

applicant that the suspension is no longer in effect.

(j) Hearings.--The commission may suspend a license under

subsection (i) pending a hearing on the matter, which must occur

within 10 days of the suspension. The commission or its director

may grant a supersedeas, if requested, pending a final

resolution of the matter.

(k) (Reserved).

(l) Criminal action.--

(1) Each district attorney shall have authority to

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investigate and to institute criminal proceedings for a

violation of this article.

(2) In addition to the authority conferred upon the

Attorney General under the act of October 15, 1980 (P.L.950,

No.164), known as the Commonwealth Attorneys Act, the

Attorney General shall have the authority to investigate and,

following consultation with the appropriate district

attorney, to institute criminal proceedings for a violation

of this article. A person charged with a violation of this

article by the Attorney General shall not have standing to

challenge the authority of the Attorney General to

investigate or prosecute the case, and, if any such challenge

is made, the challenge shall be dismissed and no relief shall

be available in the courts of this Commonwealth to the person

making the challenge.

(m) Regulatory action.--Nothing contained in subsection (l)

shall be construed to limit the existing regulatory or

investigative authority of an agency or the Commonwealth whose

functions relate to persons or matters within the scope of this

part.

(n) Inspection, seizure and warrants on racetrack

enclosures.--

(1) The commission, the Attorney General and the

Pennsylvania State Police shall have the authority without

notice and without warrant to do all of the following in the

performance of their duties:

(i) Inspect and examine all premises where horse

racing is conducted, or where records of these activities

are prepared or maintained.

(ii) Inspect all equipment and supplies in, about,

20150HB0941PN2662 - 55 -

upon or around premises referred to in subparagraph (i).

(iii) Seize, summarily remove and impound equipment

and supplies from premises referred to in subparagraph

(i) for the purposes of examination and inspection.

(iv) Inspect, examine and audit all books, records

and documents pertaining to a licensee's operation.

(v) Seize, impound or assume physical control of any

book, record, ledger or device.

(2) The provisions of paragraph (1) shall not be deemed

to limit warrantless inspections except in accordance with

constitutional requirements.

Section 2824-D. (Reserved).

Section 2825-D. Power of commission to impose fines.

(a) General rule.--The commission may impose administrative

fines upon any licensed or unlicensed racing entity, association

or person participating in horse racing at which pari-mutuel

wagering is conducted, other than as a patron, for a violation

of any provision of this article or rule or regulation of the

commission, not exceeding $10,000 for each violation. Each day

may be considered a separate violation. Fines shall be deposited

in the State Racing Fund and may be appropriated for the

enforcement of this article.

(b) Interests.--

(1) No owner, officer or employee of a licensed racing

entity or their immediate family shall have any direct or

indirect interest in a race horse that is participating in a

horse race meeting at which the person or relative listed

under this paragraph holds any interest in the licensed

racing entity conducting the horse race meeting or in the

racetrack facility.

20150HB0941PN2662 - 56 -

(2) The commission may impose a fine upon any person for

a violation of this subsection in accordance with subsection

(a).

Section 2826-D. Admission to racetrack.

(a) Power of licensed racing entity.--Except as provided in

subsection (b), a licensed racing entity may refuse admission to

and eject from the racetrack enclosure operated by the licensed

racing entity, any person licensed by the commission under this

article and employed at an occupation at the racetrack if the

person's presence is deemed detrimental to the best interests of

horse racing and after citing the reasons for the determination

in writing. The action of the licensed racing entity refusing

the person admission to or ejecting the person from a HORSE race

meeting ground or racetrack enclosure shall have immediate

effect unless a supersedeas has been granted by the bureau

director. The person refused admission or ejected shall receive

a hearing before the commission, if requested, pursuant to rules

and regulations adopted for that purpose by the commission and a

decision rendered following that hearing.

(b) Admission.--A licensed racing entity may not refuse

admission to or eject a law enforcement official, commission

member or employee or employee of the Department of Revenue

while the official is engaged in the performance of the

individual's official duties.

Section 2827-D. Security personnel.

(a) General rule.--The commission shall require licensed

racing entities to employ persons as security as determined by

the commission. Designated security personnel :

(1) Shall refer possible violations of the criminal laws

of this Commonwealth within the racetrack or RACETRACK

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enclosure to law enforcement agencies.

(2) May not eject or exclude from the racetrack or

RACETRACK enclosure any person because of the race, creed,

color, sex, sexual orientation, national origin or religion

of that person.

(b) Penalty.--An individual found within a racetrack or

RACETRACK enclosure after having been ejected therefrom shall,

upon conviction, be guilty of a summary offense and be sentenced

to pay a fine of not more than $500.

Section 2828-D. (Reserved).

Section 2829-D. Interstate simulcasting.

(a) Host 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. Upon request by a licensed racing entity or

secondary pari-mutuel organization, the commission may designate

the entity as a host licensee, authorized to maintain common

pari-mutuel pools on international and interstate races

transmitted to and from the racetrack enclosures within this

Commonwealth. All simulcasts of horse races shall comply with

the provisions of the Interstate Horseracing Act of 1978 (Public

Law 95-515, 15 U.S.C. § 3001 et seq.) and the laws of each state

involved, placed or transmitted by an individual in one state

via telephone, Internet or other electronic media and accepted

and maintained in common pari-mutuel pools. The designation as a

host licensee for international and interstate simulcast races

shall be limited to licensed racing entities which comply with 4

Pa.C.S. § 1303(d) (relating to additional Category 1 slot

machine license requirements).

(b) Simulcasts.--The following apply:

20150HB0941PN2662 - 58 -

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(1) 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 the commission.

(2) All forms of pari-mutuel wagering shall be allowed

on horse races simulcasted. The 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. The commission shall promulgate

regulations necessary to regulate wagering on televised

simulcasts.

on horse races shall be computed by the amount of money wagered

each racing day for purposes of taxation under section 2834-D.

Thoroughbred races shall be considered a part of a thoroughbred

horse race meeting and standardbred horse races shall be

considered a part of a standardbred horse race meeting.

Section 2830-D. Place and manner of conducting pari-mutuel

wagering at racetrack enclosure.

(a) Wagering location.--A licensed racing entity shall

provide a location during a horse race meeting within the

racetrack enclosure where the licensed racing entity shall

operate the pari-mutuel system of wagering by its patrons on the

results of horse races held at the racetrack or televised to the

racetrack enclosure by simulcasting under section 2829-D. The

licensed racing entity shall erect a sign or board compatible

with the totalisator systems which shall display all of the

20150HB0941PN2662 - 59 -

following:

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

race.

(2) The value of a winning mutuel ticket, straight,

place or show on the first three horses in the race.

(3) The elapsed time of the race.

(4) The value of a winning daily double ticket, if a

daily double is conducted, and any other information that the

commission deems necessary to inform the general public.

(b) Equipment.--The commission may test and examine the

equipment to be used for the display of the information under

subsection (a).

of live wagering, including cash at a window teller, a licensed

racing entity may operate an electronic wagering system on horse

racing in accordance with all of the following:

(1) Messages to place wagers shall be to a place within

the racetrack enclosure.

(2) Money used to place wagers under this subsection

shall be on deposit in an amount sufficient to cover the

wager at the racetrack where the account is opened.

(c.1) Regulations.--The commission may promulgate

regulations necessary to regulate electronic wagering for horse

racing.

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

wagering shall be included in the amount wagered each racing day

for purposes of taxation under section 2834-D and shall be

included in the same pari-mutuel pools for each posted race.

Electronic wagering systems shall be operated by the licensed

racing entity, secondary pari-mutuel organization or by a duly

20150HB0941PN2662 - 60 -

licensed RACING vendor.

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

and tabulate a wager by a direct request via electronic media

from the holder of an electronic wagering account. Only the

holder of the electronic wagering account shall place a wager.

(f) Primary market area.--

(1) A licensed racing entity or secondary pari-mutuel

organization may not accept a wager or establish electronic

wagering or advanced deposit account wagering for any person

located in the primary market area of a racetrack, other than

the racetrack at which the licensed racing entity is

conducting a HORSE race meeting.

(2) Nothing in this subsection shall be construed to

prohibit a licensed racing entity from accepting a wager from

or establishing an electronic wagering account for any person

located in the primary market area of the racetrack where the

licensed racing entity is conducting a meet HORSE RACE

MEETING . If two tracks share the primary market area, both

racetracks shall have equal rights to the market in the

shared area.

Section 2831-D. Pari-mutuel wagering at nonprimary locations.

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

(1) Notwithstanding any other provision of this article,

the commission may approve a licensed racing entity to

continue to operate a nonprimary location where it has

conducted pari-mutuel wagering on horse races conducted by

the licensed racing entity. The licensed racing entity may

continue to conduct pari-mutuel wagering at the location on

horse races conducted by another licensed racing entity,

which horse races may be televised to the location or on

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horse races simulcast to the location under section 2826-D,

provided that:

(i) A licensed racing entity has not established a

nonprimary location within the primary market area of any

racetrack other than a racetrack where the licensed

racing entity conducts horse race meetings. Establishment

of a nonprimary location by a licensed racing entity

within the primary market area of a racetrack where the

licensed racing entity conducts horse race meetings shall

require approval of the commission.

(ii) A licensed racing entity has not established a

nonprimary location within the secondary market area of a

racetrack if the nonprimary location is approved by the

commission.

(iii) A licensed racing entity has not established a

nonprimary location in an area outside the primary and

secondary market areas of any racetrack if the location

is approved by the commission.

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

additional licenses shall be permitted.

(3) The commission shall annually conduct inspections of

the primary facility.

(4) The regulatory authority of the commission shall

apply to nonprimary locations and any employees or RACING

vendors of the licensed racing entity establishing the

nonprimary location.

(b) Taxation and records.--Money wagered at all primary and

nonprimary locations under this article shall be included in

common pari-mutuel pools. Money wagered by patrons on the races

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

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for purposes of taxation under section 2834-D. The licensed

racing entity conducting the horse 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.

calculated for each location where pari-mutuel wagering is being

conducted. If wagering has taken place at a nonprimary location

where the wagering is conducted by a licensed racing entity

other than the licensed racing entity conducting the horse race

meeting, the licensed racing entity conducting the horse race

meeting shall retain any money to which it is entitled by

agreement. The licensed racing entity conducting the HORSE RACE

meeting shall pay over the balance of the retained money to the

licensed racing entity conducting the wagering at the nonprimary

location.

(d) Payment of purses.--A licensed racing entity conducting

a horse race meeting where pari-mutuel wagering is conducted at

one or more nonprimary locations shall distribute money to the

horsemen's organization, or in accordance with the practice of

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

as follows:

(1) Except as provided for in paragraphs (2), (3), (4)

and (5), an amount equal to but not less than 6% of the daily

gross wagering handle on the races at a nonprimary location.

(2) When the gross wagering handle on the races at a

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

percentage may not be less than 3%.

(3) When the gross wagering handle on the races at a

nonprimary location on a given day is between $30,000 and

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$75,000, the percentage may not be less than 4.75%.

(4) Whenever a nonprimary location is within the primary

market area of a licensed racing entity other than the

licensed racing entity conducting the races, the applicable

percentage shall be distributed one-half to the horsemen's

organization at the racetrack or in accordance with the

practice of the parties.

(5) Where the horse race meeting is being conducted to

be used for the payment of purses at the racetrack and one-

half to the horsemen'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

the racetrack.

Nothing in this subsection shall be construed to prevent a

licensed racing entity from agreeing to distribute amounts

greater than the percentages set forth in this subsection.

However, if no alternative agreement has been reached, the total

percentage for purses under this subsection shall be paid in

accordance with the minimum percentages set forth in this

subsection.

(e) Other payments.--Notwithstanding any other provision of

this article, a nonprimary location may be established within

the primary market area of a racetrack by agreement between the

licensed racing entity and the horsemen's organization at the

racetrack specifying the total percentage of handle wagered at

the nonprimary location to be distributed to the horsemen's

organization, or in accordance with the practice of the parties,

to be used for the payment of purses at that racetrack. If no

agreement is reached covering the locations, the total

percentage to be paid for purses shall be the same as that

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applied to on-track wagering at the racetrack located within the

primary market area.

Section 2832-D. Books and records of pari-mutuel wagering.

Every licensed racing entity that conducts a horse race

meeting at which pari-mutuel wagering is authorized, shall

maintain books and records that 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 examine all books and records and ascertain

whether the proper amount due to the State is being paid by the

licensed racing entity.

Section 2833-D. Filing of certain agreements with commission.

A licensed racing entity shall promptly file with the

commission any lease agreement concerning any concession, labor

management relation, hiring of designated classes of officers,

employees or contractors specified by the commission or any

other contract or agreement as the commission may prescribe.

Section 2834-D. State Racing Fund and tax rate.

(a) Fund.--There is hereby established in the State Treasury

the State Racing Fund. For fiscal year 2015-2016, money in the

fund is appropriated on a continuing basis to the department for

the purposes of administering this act ARTICLE . Beginning on

July 1, 2016, all money deposited in the fund, except money

deposited in restricted accounts, shall be annually appropriated

by the General Assembly for the administration and enforcement

of this article and for the oversight and promotion of horse

racing in this Commonwealth. A licensed racing entity that

conducts horse race meetings or a secondary pari-mutuel

organization shall pay a tax to the Department of Revenue for

deposit in the State Racing Fund.

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(b) Tax rate.--The tax imposed on a licensed racing entity

or secondary pari-mutuel organization shall be 1.5% of the

amount wagered each racing day on win, place or show wagers and

2.5% of the total amount on an exotic wager, including an

exacta, daily double, quinella and trifecta wager.

any interest shall be used as follows:

(1) For the administration and enforcement of this

article 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), the remainder

of the money shall be distributed as follows:

(i) Fifty percent shall remain in the State Racing

Fund as a carry forward balance to the next fiscal year.

Any carry forward balance shall be first applied to the

cost of equine testing under section 2874-D and, if any

still remains, for commission expenses as budgeted by the

General Assembly.

(ii) Fifty percent shall be divided equally and

distributed as follows:

(A) Twenty-five percent shall be paid by the

Department of Revenue from the State Racing Fund for

credit to the Pennsylvania Breeding Fund.

(B) Twenty-five percent shall be paid by the

Department of Revenue from the State Racing Fund for

credit to the Pennsylvania Sire Stakes Fund.

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(d) Breakage.--All breakage retained under section 2835-D by

licensed racing entities that conduct horse race meetings shall

be distributed in the following manner:

(1) Thirty-seven and one-half percent of the breakage

shall be paid to the Department of Revenue for credit to the

State Racing Fund.

(2) Sixty-two and one-half percent of the breakage shall

be retained by the licensed racing entity.

(e) Other revenues.--The State Racing Fund may also receive

moneys from any other source, including, but not limited to

appropriations made by the General Assembly.

Section 2835-D. Pari-mutuel pool distribution.

(a) Distribution.--A licensed racing entity shall distribute

money in a pari-mutuel pool to the holders of winning tickets

presented for payment before the first day of April of the year

following the date of purchase. Failure to present a winning

ticket within the prescribed period of time shall constitute a

waiver of the right to participate in the award or dividend.

After April 1 of the year following the year of purchase, a

licensed racing entity shall forward the necessary funds held

for uncashed tickets to the Department of Revenue. The funds

shall be deposited into the State Racing Fund.

(b) Remainder.--The remainder of the money shall be retained

by the licensed racing entity in the following manner:

(1) Seventeen percent of the money plus the breakage

from regular wagering pools or 19% of the money plus the

breakage from regular wagering pools for licensed racing

entities whose daily total in all pari-mutuel pools averaged

less than $300,000.

(2) Twenty percent of the money plus breakage from the

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exacta, daily double, quinella and other wagering pools as

determined by the commission.

(3) At least 26%, but no more than 35%, from the

trifecta or other wagering pools as determined by the

commission.

percentages upon approval of the commission.

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

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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

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 subsection (b)

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

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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 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

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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 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

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Breeding Fund Program from the Pennsylvania Breeding Fund, no

more than on a quarterly basis.

Section 2837-D. Pennsylvania Sire Stakes Fund.

(a) Establishment.--There is created a restricted account in

the State Racing Fund to be known as the Pennsylvania Sire

Stakes 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 administered by the commission.

(b) Distribution and use of funds.--Funds shall be

distributed as follows:

(1) 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 racing entities that conduct

standardbred 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 racing entities that

conduct standardbred horse race meetings to be used in the

next succeeding calendar year as purse money for

Pennsylvania-sired horses.

(2) After deduction of sufficient funds to cover the

commission's cost of administration, 80% of all remaining

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

calendar year shall be distributed to licensed racing

entities that conduct standardbred horse race meetings to be

used as purse money for Pennsylvania-sired horses. The

commission may allocate up to a total of 40% of the amount to

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be distributed to licensed racing entities in a calendar year

for use for a series of championship final races at the

racetracks of licensed business entities that conduct

standardbred horse race meetings. The commission shall

distribute the money to these championship final races in an

equal amount for each sex, age and gait for two-year-old

trotters and pacers and three-year-old trotters and pacers

based on conditions establishing eligibility to these final

events. No pari-mutuel standardbred racetrack shall be

awarded more than 50% of the championship final races in any

calendar year. The commission shall schedule these final

events so as to evenly alternate classes at each racetrack

each year. After the allocation for the championship final

races has been determined, the remaining funds to be

distributed to licensed racing entities that conduct

standardbred horse race meetings shall be divided equally

among the licensed racing entities. Each licensed racing

entity shall divide the funds received equally for each of:

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

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

fillies; and

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

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

fillies.

for the respective races. The purse money shall be in addition

to any entry fees or other funds available.

(d) Entry restriction.--Entry for these races shall be

limited to standardbred horses which were sired by a

standardbred stallion regularly standing in Pennsylvania and

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each race shall be designated a Pennsylvania sire stakes race.

The commission shall adopt regulations as necessary to

administer the entry restriction.

(e) Agricultural fairs and events.--

(1) The following shall apply:

(i) The remaining money in the Pennsylvania Sire

Stakes Fund, up to a total of $75,000 for each

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

defined in the commission's regulations, shall be divided

equally among the agricultural fairs and one-day or two-

day events.

(ii) No more than five one-day or two-day events may

be authorized by the commission per year.

(iii) No more than two one-day or two-day events per

county may be authorized by the commission except if,

after a date established by the commission, the five

events referenced under subparagraph (ii) conducting

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

harness horses have not been allocated.

(iv) Not less than $225,000 shall be allocated from

the Pennsylvania Sire Stakes Fund and be divided equally

among agricultural fairs and one-day or two-day events

conducting harness horse races for two-year-old and

three-year-old harness horses.

(2) Each fair or one-day or two-day event receiving

funds under this subsection 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.

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The commission shall provide for and promulgate regulations

necessary for the proper administration of racing provided

for under this subsection, including, but not limited to,

portable stall rentals at one-day or two-day events.

Section 2838-D. Fair fund proceeds.

(a) Distribution.--The Department of Agriculture shall

distribute money in the fair fund annually, on or before March

1, for reimbursement for each county agricultural society and

each independent agricultural society conducting standardbred

horse racing during its annual fair, other than races for two-

year-old colts and fillies and three-year-old colts and fillies,

an amount of money equal to that used during their annual fair

as purse money for standardbred horse racing, track and stable

maintenance, starting gate rental and the cost of all

standardbred horse racing officials required during their annual

fair. The reimbursement amount may not be more than $13,000, a

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

balance of the allotment per fair, not used for purse money over

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

purposes referenced above or otherwise the allotment shall be

retained in the fund.

(b) Inspection.--The commission shall annually inspect each

track facility at a county fair and advise each operating fair

about track maintenance which is necessary to ensure 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, the Department of Revenue shall surcharge the fair

fund account of the fair society or event sponsor to effectuate

the remediation. The commission may contract with, hire or

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otherwise consult with race track surface experts to carry out

the provisions of this section.

Section 2839-D. Hearing.

An applicant, licensee or other person whose application has

been denied or whose license has been suspended, revoked or not

renewed may request a hearing before the commission. The

provisions of 2 Pa.C.S. Chs. 5 Subch. A (relating to practice

and procedure of Commonwealth agencies) and 7 Subch. A (relating

to judicial review of Commonwealth agency action) shall apply,

unless superseded by the commission's administrative

regulations.

Section 2840-D. Prohibition of wagering.

(A) GENERAL.-- No commissioner or employee of the commission

shall wager upon the outcome of any horse race conducted at or

simulcast to a track at which pari-mutuel wagering is conducted

by any licensed racing entity regulated by the commission. No

licensed racing entity shall permit any person who is under 18

years of age to wager at a horse race meeting conducted by the

licensed racing entity. No licensed racing entity shall permit

any person who is under 18 years of age to attend a horse race

meeting conducted by the licensed racing entity 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 racetrack

premises for the sole purpose of engaging in the performance of

their duties as employees.

(B) FAIR RACING.--PARI-MUTUEL WAGERING ON HORSE RACES AT ANY

COUNTY OR OTHER POLITICAL SUBDIVISION, AGRICULTURAL OR OTHER

FAIR SHALL NOT BE AUTHORIZED. NO LOTTERY, POOL SELLING,

BOOKMAKING OR ANY OTHER KIND OF GAMBLING UPON THE RESULTS OF

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RACES, HEATS OR CONTESTS OF SPEED OF HORSES SHALL BE ALLOWED AT

ANY FAIR OR AT ANY HORSE RACE MEETING CONDUCTED IN THIS

COMMONWEALTH, EXCEPT THOSE LICENSED TO OPERATE PARI-MUTUEL

WAGERING UNDER THE PROVISIONS OF THIS ARTICLE.

Section 2841-D. Veterinarians and State stewards.

(a) General rule.--The commission shall have the authority

to employ or contract with licensed veterinarians, stewards and

other personnel deemed appropriate by the commission to serve at

each HORSE RACE meeting conducted by a licensed racing entity.

The commission may employ or contract with other individuals as

shall be necessary to carry out the responsibilities of this

section.

(b) Costs and compensation.--The costs and compensation of

the horse racing veterinarians, State stewards and other

personnel shall be fixed and paid by the commission.

Agriculture may promulgate regulations to oversee horse 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. Pari-mutuel wagering may

not be conducted at a horse race at a fair of a political

subdivision.

Section 2842-D. Promotions and discounts.

The commission may approve a licensed racing entity to issue

a free pass, card or badge for a special promotional program and

seasonal discount ticket program.

Section 2843-D. Monitoring of wagering on video screens.

A licensed racing entity conducting pari-mutuel wagering

shall display on video screens the approximate odds or

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approximate will-pays on each horse for each race as well as a

combination of races, including, but not limited to, quinellas,

exactas, perfectas and any other combination or pool of races. A

display of approximate odds or approximate will-pays is not

required where the wager is on horses in four or more races,

such as Pick 4, Pick 5 or Pick 6. In addition to displaying the

amount of money wagered, the approximate odds or approximate

will-pays on each horse or combination of horses must be shown

on video screens in each wagering division. For trifectas, in

lieu of odds or approximate will-pays, the amount of money being

wagered on each horse to win in the trifecta pool must be

displayed on video screens separately from any other

information. Information must be displayed from the opening of

bets or wagering and be continually displayed until the wagering

is closed. At least one video screen in each wagering division

shall display the amount of money wagered on each horse involved

in a trifecta pool.

Section 2844-D. Intrastate simulcasting.

(a) General rule.--The commission shall permit intrastate

simulcasting of live horse racing between the licensed racing

entities that conduct live racing .

(b) Simulcast signal.--The simulcast signal shall be

encoded, and the racetrack receiving the simulcast signal may

not send the signal anywhere other than a public location

authorized under section 2829-D.

wagering described in section 2835-D shall be allowed on a HORSE

race to be simulcasted under this section.

(d) Regulations.--The commission may promulgate regulations

on wagering and the operation of horse racing.

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

patron on a HORSE race must be computed in the amount of money

wagered each racing day for purposes of taxation under section

2834-D.

(f) Definition.--As used in this section, the term "racing

day" consists of a minimum of eight live races, except at

thoroughbred tracks on Breeders' Cup Event Day.

Section 2845-D. Commingling.

(a) Applicability.--This section is applicable only to

licensed racing entities that conduct thoroughbred racing.

(b) Race secretary.--The race secretary shall receive

entries and declarations as an agent for the licensed racing

entity for which the race secretary acts. The race secretary or

an individual designated by the licensed racing entity may

receive stakes, forfeits, entrance money, jockey fees and other

fees, purchase money in claiming races and other money that can

properly come into the race secretary's possession as an agent

for the licensed racing entity for which the race secretary or

designee is acting.

maintain a separate account , to be known as a Horsemen's

Account. Money owed to owners in regard to purses, stakes,

rewards, claims and deposits shall be deposited into the

Horsemen's Account. Funds in the account are recognized and

denominated as being the sole property of owners. Deposited

funds may not be commingled with funds of the licensed racing

entity unless a licensed racing entity established an

irrevocable clean letter of credit with an evergreen clause in

favor of the organization which represents a majority of the

owners and trainers racing with the licensed racing entity . The

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minimum amount of the credit must be the greater of $1,000,000

or 110% of the highest monthly balance in the Horsemen's Account

in the immediate prior year. To calculate the monthly balance in

the Horsemen's Account, the sum of the daily balances shall be

divided by the number of days in the month. The evergreen clause

must provide that:

(1) thirty days prior to the expiration of the letter of

credit, the financial institution can elect not to renew the

letter of credit;

(2) upon an election under paragraph (1), the financial

institution must notify the designee of the organization that

represents a majority of the owners and trainers racing with

the licensed racing entity, by registered mail, return

receipt requested, of the election not to renew; and

(3) the financial institution will honor the letter of

credit for six months after expiration.

Purse money earned by owners shall be deposited by the licensed

racing entity in the Horsemen's Account within 48 hours after

the result of the race in which the money was earned has been

declared official and the purse has been released by the

commission.

(d) Accounting.--A licensed racing entity shall designate

individuals authorized to receive and disburse funds from the

Horsemen's Account. Individuals designated under this subsection

shall be bonded to provide indemnity for malfeasance,

nonfeasance and misfeasance. A certified copy of the bond shall

be filed with the commission.

(e) Examination, access and records.--The Horsemen's Account

and the investment and deposit schedules relating to the account

are subject to examination, at reasonable times, by a designee

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of the organization which represents a majority of the owners

and trainers racing with the licensed racing entity and by the

commission. The individual designated under subsection (d) shall

provide each owner with access, at reasonable times during a

racing day, to the amount of funds in the Horsemen's Account

credited to that owner. At the close of a horse race meeting,

the designated individual shall mail to each owner a record of

deposits, withdrawals and transfers affecting the amount of

funds in the Horsemen's Account credited to that owner.

(f) Auditing and monthly statements.--The Horsemen's Account

shall be audited annually and at any other time determined by

the commission. Monthly statements shall be provided to the

designee of the organization which represents a majority of the

owners and trainers racing with the licensed racing entity and

the commission.

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

on funds in the Horsemen's Account shall be paid to the

organization that represents a majority of the owners and

trainers racing with the licensed racing entity on a weekly

basis. The amount is for the benefit of the horsemen as

determined by the organization that represents the majority of

the owners and trainers racing with the licensed racing entity.

The remaining 50% of the interest earned is for the benefit of

the licensed racing entity that has the responsibility to fund

the costs associated with the administration of the fund.

Interest each month must be earned in an amount equal to the

Federal Reserve Discount Rate on the first day of the month.

Section 2846-D. Standardbred horse racing purse money.

A licensed racing entity that conducts standardbred HORSE

racing must place on deposit with the commission by March 1 of

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each year an irrevocable letter of credit equivalent to its

average weekly purse total from the immediate prior year. The

commission shall hold the letter of credit in trust for the

standardbred horsemen racing at that licensed racing entity's

horse race meeting if the purse checks are not issued or

insufficient funds are available to cover the purse checks.

Entity, Secondary Pari-mutuel Organization, Totalisator

and Other Racing Vendors

Section 2851-D. General license requirements.

(a) New application.--A licensed racing entity or secondary

pari-mutuel organization seeking to offer electronic wagering to

individuals within this Commonwealth must apply to the

commission for a license by submitting a completed License

Application. Except for a licensed racing entity the license

shall take effect and the secondary pari-mutuel organization may

begin operations after approval by the commission.

(a.1) Application.--A totalisator service provider or other

racing vendor, as determined by the commission, seeking to

provide those services within this Commonwealth must apply to

the commission for a license by submitting a completed

application.

(b) Renewal applications.--

(1) A LICENSE FOR A totalisator service provider or

other OR racing vendor license must be renewed annually in

accordance with this article.

(2) An electronic wagering license issued to a licensed

racing entity or a secondary pari-mutuel organization shall

be renewed annually. An electronic wagering renewal

application shall be submitted on or before 120 days before

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the expiration of the license term. If the application is

approved by the commission, the license renewal shall take

effect January 1.

Section 2852-D. Licensing costs and fees.

Costs and fees are as follows:

(1) The applicant shall pay all costs incurred by the

commission in reviewing an application for an initial

license, including legal and investigative costs and the cost

of other necessary outside professionals and consultants in

accordance with the following:

(i) Except for a licensed racing entity, as an

initial payment for these costs, the applicant shall

submit, along with a license application, a cashier's

check or certified check payable to the commission in the

amount of $50,000.

(ii) Any portion of the payment not required to

complete the investigation shall be refunded to the

applicant within 20 days of the granting, withdrawal or

rejection of the initial license application.

(iii) To the extent additional costs will be

necessary, the applicant shall submit a cashier's check

or certified check payable to the commission in an amount

reasonably requested by the commission within 10 days of

receipt of the request. Failure to submit an additional

requested payment shall result in suspension of the

processing of the license application and may result in

denial of the license.

(2) An applicant for a renewal license shall pay all

reasonable costs incurred by the commission in reviewing a

renewal license, including legal and investigative costs and

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the cost of other necessary outside professionals and

consultants in accordance with the following:

(i) The applicant shall submit a cashier's check or

certified check payable to the commission in an amount

reasonably requested by the commission within 10 days of

receipt of request.

(ii) Failure to submit the payment shall result in

suspension of the processing of renewing the license and

may result in denial of the license.

(3) Initial license fee:

(i) The fee for an electronic wagering license under

section 2851-D(a) shall be $500,000. If an applicant that

is also a Category 1 slot machine licensee or its

corporate successor or affiliate paid the license fee

under 4 Pa.C.S. § 1209 (relating to slot machine license

fee), the fee required under this paragraph shall be

deemed paid. A fee paid under this paragraph shall be

deposited in the State Racing Fund or, in the case of a

deemed payment, transferred to the State Racing Fund upon

certification of the Secretary of the Budget.

(ii) The fee for an initial totalisator service

provider or other OR racing vendor license under section

2851-D(a.1) shall be $25,000 and shall be deposited in

the State Racing Fund.

(4) License renewal fee:

(i) The fee for an electronic wagering license

renewal under section 2851-D(b) 2851-D(B)(2) shall be

$100,000. If an existing licensee under this section that

is also a Category 1 slot machine licensee or its

corporate successor or an affiliate paid the license fee

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under 4 Pa.C.S. § 1209, the fee required under this

paragraph shall be deemed paid. A license renewal may not

be issued until receipt of the license renewal fee. The

license fee shall be deposited into the State Racing Fund

or, in the case of a deemed payment, it shall be

transferred to the State Racing Fund.

(ii) The fee for the renewal of a totalisator

service provider licensee or other OR racing vendor

license under section 2851-D(b)(2) 2851-D(B)(1) shall be

$25,000 $5,000 and shall be deposited in the State Racing

Fund.

(5) The commission shall be reimbursed for any

additional costs required to implement and enforce this

chapter AR TICLE .

(6) 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

due to take effect.

Section 2853-D. License application procedures.

(a) Application for license.--An application for an initial

or renewal license shall be in the form and manner prescribed by

the commission in accordance with this chapter AR TICLE . The

commission may deny a license to an applicant that provides

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false or misleading information on or omits material information

from the application. The application shall include all of the

following:

(1) The applicant's legal name.

(2) The location of the applicant's principal office.

(3) The name, address and date of birth of each

principal with a five percent or greater share of ownership

or beneficial interest in the applicant.

(4) Audited financial statements for the last three

years or, if the applicant does not have audited financial

statements, financial and other pertinent information as

required by the commission to determine that the applicant is

financially capable of operating as a going concern and

protecting accounts.

(5) A detailed plan of how the wagering system will

operate. The commission may require changes in the proposed

plan of operations as a condition of granting a license.

There shall not be subsequent material changes in the plan of

operations unless ordered by the commission or until approved

by the commission after receiving a written request.

(6) A list of all personnel processing wagers on races

made by residents of this Commonwealth. This list shall be

kept current and be provided to the commission upon request.

(7) Copies of all documents required under this

subsection by the commission.

(b) Review.--In reviewing an application, the commission may

consider any information, data, report, finding or other factor

available that it considers important or relevant to the

determination of whether the applicant is qualified to hold a

license, including all of the following:

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(1) The integrity of the applicant and its principals,

including:

(i) Whether the applicant or its principals are

unsuitable.

(ii) Whether the applicant or its principals have

been a party to litigation over business practices,

disciplinary actions over a business license or refusal

to renew a license.

(iii) Whether the applicant or its principals have

been a party to proceedings in which unfair labor

practices, discrimination or violation of government

regulations pertaining to racing or gaming laws was an

issue or bankruptcy proceedings.

(iv) Whether the applicant or its principals have

failed to satisfy judgments, orders or decrees.

(v) Whether the applicant or its principals have

been delinquent in filing tax reports or remitting taxes.

(2) The quality of physical facilities and equipment.

(3) The financial ability of the applicant to conduct

wagering.

(4) The protections provided to safeguard accounts,

including a certification from the licensee's chief financial

officer that account funds will not be commingle d with other

funds as required under this chapt er ARTICLE .

(5) The management ability of the applicant and its

principals.

(6) Compliance of the applicant with applicable

statutes, charters, ordinances and administrative

regulations.

(7) The efforts of the applicant to promote, develop and

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improve the horse racing industry in this Commonwealth.

(8) The efforts of the applicant to safeguard and

promote the integrity of pari-mutuel wagering in this

Commonwealth.

(9) The economic impact of the applicant upon the

Commonwealth.

Section 2854-D. Oral presentation by applicant.

(a) Application.--The application presentation shall be in

accordance with all of the following:

(1) The commission may require an applicant to make an

oral presentation prior to the ruling in order to clarify or

otherwise respond to questions concerning the application as

a condition to the issuance or renewal of a license.

(2) The presentation shall be limited to the information

contained in the applicant's application and any supplemental

information relevant to the commission's determination of the

applicant's suitability.

(3) The admission as evidence of the supplemental

information shall be subject to the discretion of the

commission.

(b) Incomplete application.--If the commission deems an

applicant's application incomplete and does not accept it for

filing, the applicant shall not be entitled to make an oral

presentation.

Section 2855-D. Additional information.

The commission may request additional information from an

applicant if the additional information would assist the

commission in deciding whether to issue or renew a license,

including all of the following:

(1) Copies of any documents used by the applicant in

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preparing the application.

(2) A list of each contract between the applicant and a

third party related to operations. The commission may review

the contracts at any time upon request.

Section 2856-D. Operations.

(a) Prior to operating requirements.--Before doing business

in this Commonwealth all of the following are required of a

licensee:

(1) Be qualified to do business in this Commonwealth.

(2) Submit a copy of each document required to be filed

with the Department of Revenue and each document related to

an audit or investigation by any Federal, State or local

regulatory agency to the commission.

(3) Remit to the commission a copy of each document

required to be filed with any Federal, State or local

regulatory agency.

(b) Requirements.--

(1) A licensee shall submit quarterly reports to the

commission providing amounts wagered by residents in this

Commonwealth and amounts wagered on races in this

Commonwealth.

(2) A licensee shall enter into an agreement with each

licensed racing entity in this Commonwealth on whose races

the licensee offers wagering regarding payment of host fees

and any other applicable fees, costs or payments of any kind

to be paid to the licensed racing entity. The licensed racing

entity and the applicable horsemen's organization shall

negotiate a separate agreement for contributions to the purse

account.

(3) A licensee shall not commingle account funds with

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other funds.

(4) A licensee shall provide quarterly financial

statements to the commission for the first calendar year of

operation if the licensee does not have audited financial

statements for the last three years as referenced in section

2853-D(a)(4).

(5) A licensee shall use and communicate pari-mutuel

wagers to a totalisator licensed by the commission.

(6) A licensee shall operate and communicate with the

totalisator in such a way as not to provide or facilitate a

wagering advantage based on access to information and

processing of wagers by account holders relative to

individuals who wager at licensed racing entities or

simulcast facilities.

(7) All personnel processing wagers made by residents of

this Commonwealth shall be licensed by the commission.

(8) Accounts shall only be accepted in the name of an

individual and shall not be transferable. Only individuals

who have established accounts with a licensee may wager

through a licensee.

(9) Each account holder shall provide personal

information as the licensee and the commission require,

including all of the following:

(i) Name.

(ii) Principal residence address.

(iii) Telephone number.

(iv) Social Security number.

(v) Date of birth.

(vi) Other information necessary for account

administration.

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(10) The information supplied by the account holder

shall be verified by the licensee using means acceptable to

the commission. A secondary pari-mutuel organization must

verify that the account holder does not reside within the

primary market area of a licensed racing entity.

(11) The licensee shall provide each account holder a

secure personal identification code and password to be used

by the account holder to confirm the validity of every

account transaction.

(12) An employee or agent of the licensee shall not

disclose any confidential information except the following:

(i) To the commission.

(ii) To the account holder as required by this

chapter A RTICLE .

(iii) To the licensee and its affiliates.

(iv) To the licensed racing entity as required by

the agreement between the licensee and the licensed

racing entity.

(v) As otherwise required by law.

(13) The licensee shall provide each account holder a

copy of account holder rules and the terms of agreement and

other information and materials that are pertinent to the

operation of the account.

(14) The licensee may refuse to establish an account if

it is found that any of the information supplied is false or

incomplete or for any other reason the licensee deems

sufficient.

(15) Each account shall be administered in accordance

with the account holder rules and the terms of agreement

provided to account holders, including:

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(i) Placing of wagers.

(ii) Deposits to accounts.

(iii) Credits to accounts.

(iv) Debits to accounts.

(v) Refunds to accounts.

(vi) Withdrawals from accounts.

(vii) Minimum deposit requirements.

(viii) Fees per wager.

(ix) Rebates.

(16) Each licensee shall have protocols in place and

shall publicize to its account holders when the wagers are

excluded from a host racetrack's wagering pool. These

protocols shall include an immediate electronic mail message

to affected account holders and immediate posting on the

licensee's publicly accessible Internet website.

(17) A licensee shall maintain complete records of the

application and the opening of an account for the life of the

account plus two additional years. A licensee shall also

maintain complete records of the closing of an account for

two years after closing. These records shall be provided to

the commission upon request.

(18) A licensee shall maintain complete records of all

transactions, including deposits, credits, debits, refunds,

withdrawals, fees, wagers, rebates and earnings for two

years. These records shall be provided to the commission upon

request.

(19) All wagering conversations, transactions or other

wagering communications, verbal or electronic, shall be

recorded by means of the appropriate electronic media and the

tapes or other records of the communications shall be kept by

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the licensee for a period of two years. These tapes and other

records shall be made available to the commission upon

request.

(20) The recording of the confirmation of the

transaction, as reflected in the voice or other data

recording, shall be deemed to be the actual wager regardless

of what was recorded by the totalisator.

(21) A licensee shall not accept wagers if its recording

system is not operable.

(22) The commission may monitor the equipment and staff

and review the records of a licensee and any of the

transactions conducted by the licensee with regards to wagers

made by residents of this Commonwealth.

(23) A licensee may suspend or close any account for

violation of the account holder rules and the terms of

agreement or any other reason it deems sufficient, if the

licensee returns to the account holder all money then on

deposit within seven calendar days.

Section 2857-D. Transfers of licenses.

A transfer of licenses shall be done in accordance with the

following:

(1) A license issued under this chapt er ARTICLE shall

not be transferable or assignable.

(2) A substantial change in ownership in a licensee

shall result in termination of the license unless prior

written approval has been obtained from the commission. A

request for approval of a substantial change in ownership

shall be made on a form designated by the commission. Upon

receipt of all required information, the commission shall, as

soon as practicable, make a determination whether to

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authorize and approve the substantial change in ownership.

(3) Notice of a nominal change in ownership shall be

filed with the commission within 15 days of the execution of

the documents upon which the proposed nominal change in

ownership will be based.

(4) For purposes of paragraph (3), notice is not

required for any of the following:

(i) A nominal change in ownership if the licensee is

a publicly traded corporation.

(ii) The transfer of an ownership interest in a

licensed racing entity, whether substantial or nominal,

direct or indirect, if by a publicly traded corporation,

and if the beneficial ownership transferred is acquired

by an individual who holds the voting securities of the

publicly traded corporation for investment purposes only.

(5) Any attempt to effect a substantial change in

ownership under this section if not done so in writing shall

be considered void by the commission.

Section 2858-D. Duration of license.

A license issued under this chapter A RTICLE shall be valid

for one calendar year for which the license is issued.

Section 2859-D. Penalties and enforcement.

All of the following apply:

(1) The commission shall have all of the rights, powers

and remedies necessary to carryout this chapter CA RRY OUT

THIS ARTICLE and to ensure compliance with this chapt er

ARTIC LE , including revocation, suspension or modification of

a license and the imposition of fines under section 2825-D.

(2) With respect to an individual or entity that offers

pari-mutuel wagering to residents of this Commonwealth

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without a license issued by the commission, the commission

may take the measures deemed necessary, including referral to

the appropriate regulatory and law enforcement authorities

for civil action or criminal penalties.

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

mutuel organization or totalisator of this chapter AR TICLE 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 2825-D.

(d) Compliance

Section 2861-D. Tax compliance requirement.

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

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

receipt of an application for a license or permit , the

commission shall request the Department of Revenue to conduct a

tax compliance review of the applicant.

(b) Licensees.--A licensee must be tax compliant to be

eligible for renewal of a license or permit issued under this

article. Prior to renewing a license or permit , the commission

shall request the Department of Revenue to conduct a tax

compliance review of the licensee.

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. This

subsection may not apply to commission employees subject to a

collective bargaining agreement.

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

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subject to an annual tax compliance review to ensure that the

contractor is tax compliant.

(e) Review.--The tax compliance review under subsection (a)

and (b) and the annual tax compliance review under subsections

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.

"T ax compliance review." The process by which the Department

of Revenue determines whether an individual or entity is tax

compliant.

(e) Medication Rules and Enforcement Provisions

Section 2871-D. Mandatory requirements for medication rules.

(a) When a licensed racing entity conducts a horse race

meeting with pari-mutuel wagering the commission shall have in

effect rules or regulations to control the use and

administration of any medication and the use and administration

of any device that affects the performance of a race horse. The

commissions COMMISSION may establish permitted tolerance levels

and therapeutic dose allowances for all medication to be used or

administered to a race horse. commission shall adopt a

comprehensive schedule of equine drugs, medications, therapeutic

substances or metabolic derivatives which are authorized to be

administered to race horses, including tolerance levels. In

order to properly determine the schedule of drugs and the

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tolerance levels under this subsection, the commission may

conduct research or contract with a vendor to conduct the

research. The commission may consult with the Pennsylvania Board

of Veterinary Medicine, academic institutes and associations

representing the majority of the horse owners and experts.

(b) The commission shall establish in their rules or

regulations penalty provisions for the violation of these rules

or regulations.

Section 2872-D. Establishment of Pennsylvania Race Horse

Testing Program.

(a) There is hereby established the Pennsylvania Race Horse

Testing Program. The program shall be administered by the

commission. All costs of the program shall be paid by the

appropriations allocated under section 2874-D. The program shall

be administered by the commission. All costs of the program

shall be paid by the appropriations under section 2874-D.

(b) The purposes of the Pennsylvania Race Horse Testing

Program are to analyze samples for the presence in race horses

of any medication, to develop techniques, equipment and

procedures, to collect and test for the presence of medication

in race horses, to ascertain permitted tolerance levels or

therapeutic dose allowances for medication, to offer

consultation and advice to the public on all issues regarding

the medication of race horses and to conduct research in

medication issues involving race horses.

Section 2873-D. Equipment, supplies and facilities.

The costs of all equipment, supplies and facilities, except

holding barns or stables, to be located at race horse meeting

facilities, grounds or enclosures or at other locations

designated by the management committee shall be paid by the

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commission.

Section 2874-D. Costs of the enforcement of medication rules or

regulations.

(a) Authorization.--Beginning July 1, 2016, and each year

thereafter, the General Assembly shall authorize the transfer of

funds from the Pennsylvania Race Horse Development Fund to the

State Racing Fund to provide for each cost associated with the

collection and research of and testing for medication, which

shall include the cost of necessary personnel, equipment,

supplies and facilities, except holding barns or stables, to be

located at horse race facilities, grounds or enclosures or at

other locations designated by the commission. All such costs

shall be reviewed and approved by the commission. The transfer

shall be made in 52 equal weekly installments during the fiscal

year before any other distribution from the Pennsylvania Race

Horse Development Fund.

(b) Expiration.--Subsection (a) shall expire at 11:59 p.m.

on June 30, 2020. After June 30, 2020, all costs for the

Pennsylvania Race Horse Testing Program and the collection and

testing of samples for any manner of medication shall be paid by

the commission.

Section 4.1. No later than one year after the effective date

of this section, the Joint State Government Commission, with

assistance from the Independent Fiscal Office, shall conduct a

study and provide a report to the chairperson and minority

chairperson of the Agriculture and Rural Affairs Committee of

the Senate and the chairperson and minority chairperson of the

Agriculture and Rural Affairs Committee of the House of

Representatives. The report shall include an assessment of the

financial, regulatory and market factors listed under paragraphs

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(1), (2), (3), (4), (5), (6), (7), (8) and (9), (9) AND (10) and

shall offer recommendations on best practices in each area for

the Commonwealth to consider. The study shall provide an

assessment of and recommendation on the following:

(1) Potential cost savings and regulatory streamlining

in the oversight of racing, including those associated with

combining Pennsylvania's gaming oversight functions, such as

horse racing, casino gaming and lottery, into a single,

coordinated entity.

(2) The necessity, efficiency and benefits of having

separate racing commissions or divisions within a single

commission for thoroughbred and harness tracks.

(3) A determination of best regulatory practices in

other jurisdictions, such as New York, Ohio and Maryland and

other states or provinces and comparing Pennsylvania's

approach against the best regulatory practices in other

jurisdictions.

(4) In addition to the Auditor General's June 17, 2014,

Special Performance Audit of the State Racing Fund, a

determination of what safeguards and policies can be

implemented to avoid future inappropriate Department of

Agriculture cost allocations to the racing commissions.

(5) An evaluation of the cost effectiveness of the

Pennsylvania Equine Toxicology Research Laboratory and

comparing the laboratory's functions to other jurisdictions.

(6) Consideration of the imposition of increased fines

and the assessment of Pennsylvania Equine Toxicology Research

Laboratory costs against those found to have engaged in the

impermissible doping of race horses and examination of how to

strengthen property owner rights in the ejectment of bad

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actors in racing.

(7) A determination of the economic return to the

Commonwealth, racetrack operators, horsemen, breeders and

other stakeholders on the investment of gaming assessments

collected under the act of July 5, 2004 (P.L.572, No.71),

entitled, "An act amending Title 4 (Amusements) of the

Pennsylvania Consolidated Statutes, authorizing certain

racetrack and other gaming; providing for regulation of

gaming licensees; establishing and providing for the powers

and duties of the Pennsylvania Gaming Control Board;

conferring powers and imposing duties on the Department of

Revenue, the Department of Health, the Office of Attorney

General, the Pennsylvania State Police and the Pennsylvania

Liquor Control Board; establishing the State Gaming Fund, the

Pennsylvania Race Horse Development Fund, the Pennsylvania

Gaming Economic Development and Tourism Fund, the Compulsive

and Problem Gambling Treatment Fund and the Property Tax

Relief Fund; providing for enforcement; imposing penalties;

making appropriations; and making related repeals."

(8) A determination of the nature of thoroughbred and

standardbred breeding in this Commonwealth since the

enactment of the act of July 5, 2004 (P.L.572, No.71), and

comparing it to the nature of breeding before enactment of

the act of July 5, 2004 (P.L.572, No.71).

(9) A determination of how Pennsylvania's race horse

industry and regulatory entities can best be positioned for

future success or at a minimum financial stability in an

environment of declining race track patrons and handle,

competition from live racing from neighboring states and the

increasing availability of alternative gaming platforms, such

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as Internet and mobile gaming and fantasy sports.

Specifically, the study shall consider options for reforming

and promoting horse racing RACE meetings that will increase

handle, reduce racing costs, promote the health of the horse

and advance the best interests of racing fans and bettors.

(10) An assessment of live racing marketing programs at

each track and the impact on pari-mutuel wagering and public

attendance on race days. This assessment shall include

marketing or advertising expenditures and the return on

investment of those expenditures specific to racing.

Section 5. Repeals are as follows:

(1) The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the addition of

sections 2801-D, 2822-D, 2829-D, 2830-D and 2834-D of the

act.

(2) Article XVI-B of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, is repealed.

(3) The repeal under paragraph (4) is necessary to

effectuate the addition of Article XVIII-D XXVIII-D of the

act.

(4) The act of December 17, 1981 (P.L.435, No.135),

known as the Race Horse Industry Reform Act, is repealed.

Section 6. This act shall take effect as follows:

(1) The following provisions shall take effect

immediately:

(i) The addition of the following provisions of the

act:

(A) Section 2811-D.

(B) Section 2834-D.

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(ii) Section 3 of this act.

(iii) Section 4 of this act.

(I) THE ADDITION OF ARTICLE XXVIII-D OF THE ACT.

(iv) (II) Section 4.1 of this act.

(III) SECTION 5 OF THIS ACT.

(v) (IV) This section.

(2) The amendment of section 614-A(13)(iii) of the act

shall take effect in 60 days.

(3) The remainder of this act shall take effect in 90

days.

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