RACE HORSE INDUSTRY REFORM ACT — 1981 Pa. Act 135 (historical enacted text)

Historical Act text part 1

HOUSE AMENDED
PRIOR PRINTER'S NOS. 1119, 1245, 1371, PRINTER'S NO. 1495
1431
INTRODUCED BY O'CONNELL, STAPLETON, RHOADES, LINCOLN, HOPPER,
STREET, MOORE, O'PAKE, HESS, LYNCH AND ANDREZESKI, JUNE 30,
1981
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
NOVEMBER 24, 1981
AN ACT
1 Providing for the regulation of pari-mutuel thoroughbred horse
2 racing and harness horse racing activities; imposing certain
3 taxes and providing for the disposition of funds from pari-
4 mutuel tickets.
5 TABLE OF CONTENTS
6 Chapter 1. General Provisions
7 Section 101. Short title.
8 Section 102. Definitions.
9 Chapter 2. State Horse Racing Commission and State Harness
10 Racing Commission
11 Section 201. Establishment of the commissions.
12 Section 202. General powers of the commissions.
13 Section 203. Incorporation.
14 Section 204. Filing of information concerning stock
15 transfers; necessity for commissions' approval.
16 Section 205. Number of horse racing corporations.
17 Section 206. Responsibilities of the Department of Revenue.
1 Section 207. Allocation of racing days.
2 Section 208. State admissions taxes.
3 Section 209. Licenses for horse race meetings.
4 Section 210. Shareholders.
5 Section 211. Prohibition of interest by public officers,
6 public employees and party officers in pari-
7 mutuel racing activities.
8 Section 212. Officials at horse race meetings.
9 Section 213. Licenses for commissioners, employees and
10 participants at horse race meetings.
11 Section 214. Power of commissions to impose fines and
12 penalties.
13 Section 215. Security personnel; powers and duties; penalty.
14 Section 216. Interstate simulcastings of horse races.
15 Section 217. Refunds.
16 Section 218. Place and manner of conducting pari-mutuel
17 wagering.
18 Section 219. Books and records of pari-mutuel wagering.
19 Section 220. Filing of certain agreements with the
20 commissions.
21 Section 221. Retention percentages for pari-mutuel pools.
22 Section 222. Distribution of moneys retained from pari-
23 mutuel pools; taxation.
24 Section 223. Pennsylvania Breeding Fund.
25 Section 224. Pennsylvania Sire Stakes Fund.
26 Section 225. Pennsylvania Fair Fund.
27 Section 226. Hearing of refusal or revocation of license.
28 Section 227. Approval of the racing facility.
29 Section 228. Prohibition of wagering by certain officials,
30 employees and minors.
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1 Section 229. State horse racing veterinarians and State
2 steward.
3 Section 230. State harness racing veterinarians.
4 Section 231. Free passes, cards or badges.
5 Section 232. Political subdivision agricultural fairs and
6 horse race meetings not licensed to conduct
7 pari-mutuel wagering.
8 Chapter 3. Medication Rules and Enforcement Provisions
9 Section 301. Mandatory requirements for medication rules.
10 Section 302. Establishment of the Pennsylvania Race Horse
11 Testing Laboratory.
12 Section 303. Equipment, supplies and facilities.
13 Section 304. Costs of the enforcement of the medication
14 rules or regulations.
15 Chapter 4. Miscellaneous Provisions
16 Section 401. Repealer.
17 Section 402. Severability.
18 Section 403. Effective dates.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 CHAPTER 1
22 GENERAL PROVISIONS
23 Section 101. Short title.
24 This act shall be known and may be cited as the "Race Horse
25 Industry Reform Act."
26 Section 102. Definitions.
27 The following words and phrases when used in this act shall
28 have, unless the context clearly indicates otherwise, the
29 meanings given to them in this section:
30 "Commissions." The State Horse Racing Commission and the
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1 State Harness Racing Commission.
2 "Commissioners." The persons appointed by the Governor and
3 confirmed by the Senate who serve on the State Horse Racing
4 Commission or the State Harness Racing Commission and who
5 administer the applicable provisions of this act.
6 "Licensed corporations." The corporations that have obtained
7 a license from either the State Horse Racing Commission or the
8 State Harness Racing Commission to conduct thoroughbred or
9 harness horse race meetings respectively with pari-mutuel
10 wagering.
11 CHAPTER 2
12 STATE HORSE RACING COMMISSION AND STATE HARNESS
13 RACING COMMISSION
14 Section 201. Establishment of the commissions.
15 (a) The State Horse Racing Commission is hereby established
16 as a departmental administrative commission within the
17 Department of Agriculture. The commission shall have general
18 jurisdiction over all pari-mutuel thoroughbred horse racing
19 activities in the Commonwealth and the corporations engaged
20 therein. For the purposes of this act, "thoroughbred horse
21 racing" means that form of horse racing in which each
22 participating horse is mounted by a jockey, is duly registered
23 with the Jockey Club, New York, New York and engages in races on
24 the flat. Thoroughbred horse racing may include a steeplechase
25 or hurdle race. The commission shall consist of three members
26 who shall be appointed by the Governor, by and with the advice
27 and consent of the Senate. Each commissioner shall hold office
28 for a term of three years and until a successor is qualified.
29 (b) The State Harness Racing Commission is hereby
30 established as a departmental administrative commission within
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1 the Department of Agriculture. The commission shall have general
2 jurisdiction over all pari-mutuel harness racing activities in
3 the Commonwealth and the corporations engaged therein. The
4 commission shall consist of three members who shall be appointed
5 by the Governor, by and with the advice and consent of the
6 Senate. Each commissioner shall hold office for a term of three
7 years and until a successor is qualified.
8 (c) The commissioners shall be reimbursed for documented
9 expenses incurred in the performance of their official duties.
10 The commissioners shall be paid $150 per diem for performing
11 their duties as directed by the Secretary of Agriculture. One of
12 the commissioners for each commission shall be appointed by the
13 Governor as chairperson. The commissioner appointed by the
14 Governor as chairperson shall serve in that position at the
15 pleasure of the Governor. The Secretary of Agriculture or his
16 designee shall be a nonvoting ex officio member of the
17 commissions. The commissions shall meet at least once a month
18 and at other times as the Secretary of Agriculture or the
19 commission chairperson deems necessary. Adequate public notice
20 of the time and place of the meetings shall be given. A
21 commissioner who fails to attend three consecutive meetings
22 shall be subject to removal. A commissioner shall be excused
23 from meetings due to illness or death of an immediate family
24 member. All commissioners shall be licensed under the provisions
25 of section 213.
26 (d) Each commission shall engage an executive secretary,
27 deputies, secretaries, officers and representatives as it may
28 deem necessary, who shall serve during its pleasure. The
29 commissions shall also engage other employees as they see fit
30 and whose duties shall be prescribed by the commissions and
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1 whose compensation shall be fixed by the commissions within the
2 appropriations available. Legal counsel for the commissions
3 shall be appointed in accordance with the act of October 15,
4 1980 (P.L.950, No.164), known as the "Commonwealth Attorneys
5 Act." Each commission shall be subject to the provisions of the
6 act of April 9, 1929 (P.L.177, No.175), known as "The
7 Administrative Code of 1929," as to classification and
8 compensation for all its employees.
9 (e) It shall be the duty of the executive secretary to keep
10 a full and faithful record of the proceedings of the
11 commissions, preserve at the general office of the commissions
12 all books, maps, documents and papers entrusted to the executive
13 secretary's care, prepare for service the papers and notices as
14 may be required by the commissions and perform other duties as
15 the commissions may prescribe. It shall be the duty of the
16 executive secretary to keep, at the offices of the commissions,
17 a docket setting forth the names of all stockholders in all
18 corporations licensed under this act, the number of shares held
19 by each stockholder and the date on which each shareholder
20 acquired stock in the licensed corporation. The docket shall be
21 open for public inspection.
22 (f) The commissions or designated officers, employees or
23 agents of the commissions shall have the power to administer
24 oaths and examine witnesses and may issue subpoenas to compel
25 attendance of witnesses and production of all relevant and
26 material reports, books, papers, documents, correspondence and
27 other evidence. The commissions shall, annually, make a full
28 report to the Secretary of Agriculture of their proceedings for
29 the preceding calendar year and suggestions and recommendations
30 as they see fit. The commissions shall exercise their powers and
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1 duties in accordance with the provisions of "The Administrative
2 Code of 1929."
3 (g) The terms and termination dates of the terms of the
4 three commissioners who constitute the State Horse Racing
5 Commission under the act of December 11, 1967 (P.L.707, No.331),
6 referred to as the Pennsylvania Thoroughbred Horse Racing Law,
7 shall continue under this act. Any commissioner whose term has
8 already expired on the effective date of this act and who has
9 not been replaced by a new member or has not been confirmed for
10 another term, shall continue in his or her present status until
11 replaced by a new member or confirmed for another term.
12 (h) The terms and termination dates of the terms of the
13 three commissioners who constitute the State Harness Racing
14 Commission under the act of December 22, 1959 (P.L.1978,
15 No.728), referred to as the Pennsylvania Harness Racing Law,
16 shall continue under this act. Any commissioner whose term has
17 already expired on the effective date of this section and who
18 has not been replaced by a new member or has not been confirmed
19 for another term, shall continue in his or her present status
20 until replaced by a new member or confirmed for another term.
21 (i) All rules and regulations promulgated under the
22 provisions of the Pennsylvania Thoroughbred Horse Racing Law and
23 the Pennsylvania Harness Racing Law shall remain in effect
24 except to the extent that they are in direct conflict with the
25 provisions of this act. The commissions may amend, revise or
26 alter these rules and regulations as they deem necessary.
27 (j) All licenses issued under the provisions of section 11
28 of the Pennsylvania Thoroughbred Horse Racing Law and under the
29 provisions of section 9 of the Pennsylvania Harness Racing Law,
30 shall remain in effect for the remainder of the term for which
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1 these licenses were issued. After these licenses have expired,
2 all renewals or new licenses shall be issued under the
3 provisions of this act.
4 (k) All licenses issued to corporations under the provisions
5 of section 7 of the Pennsylvania Thoroughbred Horse Racing Law
6 and under the provisions of section 7 of the Pennsylvania
7 Harness Racing Law, shall continue with the same force and
8 effect and shall be governed by the provisions of section 209.
9 Section 202. General powers of the commissions.
10 (a) The State Horse Racing Commission shall have the power
11 to supervise all thoroughbred horse race meetings at which pari-
12 mutuel wagering is conducted. The State Harness Racing
13 Commission shall have the power to supervise all harness horse
14 racing meetings at which pari-mutuel wagering is conducted. The
15 commissions may adopt rules and regulations to effect the
16 purposes and provisions of this act.
17 (b) Without limiting the generality of the foregoing and in
18 addition to its other powers:
19 (1) Each commission shall have power to fix a minimum
20 charge for admission to horse race meetings at which pari-
21 mutuel wagering is conducted, but the minimum charge shall
22 not be less than 50¢ for general admission, exclusive of
23 taxes. The commissions shall have power to fix the charge for
24 admission of soldiers, sailors and marines, in uniform, at
25 one-half of the amount fixed for general admission, whether
26 or not the one-half of the amount fixed is less than the
27 minimum prescribed therein.
28 (2) Each commission shall at all times have in effect
29 rules and regulations as required under Chapter 3 regarding
30 medication rules and enforcement provisions.
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1 (3) The rules of the commissions shall also provide that
2 all winning pari-mutuel tickets must be presented for payment
3 before April 1 of the year following the year of their
4 purchase and failure to present the ticket within the
5 prescribed period of time shall constitute a waiver of the
6 right to participate in the award. After April 1 of the year
7 following, all licensed corporations will forward to the
8 State Treasurer through the Department of Revenue for credit
9 to the respective racing funds all funds so held for the
10 uncashed tickets. Where it is shown to the satisfaction of
11 the appropriate commission and the Department of Revenue,
12 through substantiated and recorded data, that the reason for
13 the pari-mutuel ticket or tickets being outstanding and
14 unclaimed is loss, misplacement or theft within the confines
15 and control of the pari-mutuel department of any licensed
16 corporation and it is shown to the satisfaction of the
17 appropriate commission and the Department of Revenue that the
18 pari-mutuel ticket or tickets in question have been cashed by
19 the pari-mutuel department, the Department of Revenue, with
20 the approval of the appropriate commission, may adjust and
21 credit the licensed corporation's outstanding ticket account
22 accordingly on March 31 of the year following the year of
23 purchase or after a complete audit of the outstanding tickets
24 accounts have been performed. The licensed corporation shall
25 reimburse any employee who has been held personally
26 accountable and paid for the lost, misplaced or stolen
27 tickets.
28 (4) The commissions may adopt a general promotion
29 program to assist the licensed corporations in increasing
30 their attendance and average daily handle. Any expenditures
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1 for a promotional program shall be authorized and approved in
2 the same manner as other operational costs of the
3 commissions.
4 (5) In the event that a state bordering Pennsylvania
5 enacts a wagering tax scheme that may place Pennsylvania
6 horse race meetings at a competitive disadvantage in the
7 purses that can be offered for horse races, a licensed
8 corporation may petition the appropriate commission for an
9 emergency financial grant to augment its purse structure. If
10 the appropriate commission finds that the effect of the
11 enacted wagering tax scheme of a bordering state is to place
12 Pennsylvania horse race meetings at a competitive
13 disadvantage in purse structure, the appropriate commission
14 shall make an emergency financial grant to the petitioning
15 licensed corporation for augmentation to its purse structure
16 out of moneys that the commission has budgeted for this
17 purpose; provided, however, that the Secretary of Agriculture
18 and the Secretary of the Office of Budget and Administration
19 have also agreed to the grant.
20 Section 203. Incorporation.
21 (a) Any number of persons, not less than five, may
22 incorporate for the purpose of conducting harness horse race
23 meetings and thoroughbred horse race meetings at which pari-
24 mutuel wagering will be conducted, with all the general powers
25 of corporations created under the laws of this Commonwealth, by
26 making, signing, acknowledging and filing with the Department of
27 State a certificate which shall contain:
28 (1) The name of the proposed corporation.
29 (2) The objects for which it is to be formed and the
30 location at which it is proposed to conduct its business.
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1 (3) The amount and description of the capital stock.
2 (4) The location of its principal business office.
3 (5) Its duration, which may be forever.
4 (6) The number of its directors, not less than five nor
5 more than 13.
6 (7) The names and post office addresses of the directors
7 for the first year.
8 (8) The post office addresses of the subscribers and a
9 statement of the number of shares of stock which each agrees
10 to take in the corporation.
11 (b) Each such certificate shall be accompanied by the fees,
12 bonus and taxes required by law in the case of corporations
13 organized under the act of May 5, 1933 (P.L.364, No.106), known
14 as the "Business Corporation Law."
15 (c) No corporation organized under this act shall have the
16 right to conduct any horse race meet except on obtaining a
17 license from the appropriate commission and at the location or
18 locations designated in its license or any amendment thereto or
19 as approved at any time by the commission as the place or places
20 at which it was proposed to conduct its business. This
21 restriction shall not apply to any corporation whose racing
22 plant or usefulness, in the discretion of the appropriate
23 commissions, shall, for any reason beyond the control of the
24 corporation, be totally destroyed or so substantially interfered
25 with as to render same unfit for continued operation. Pending
26 the rebuilding or restoration of its usefulness, or the making
27 of the required repairs to the plant or the part destroyed or
28 damaged, the commissions may license such corporation to conduct
29 its horse race meetings at any other suitable location.
30 Section 204. Filing of information concerning stock transfers;
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1 necessity for commissions' approval.
2 (a) Whenever a transfer of stock of any licensed corporation
3 or of any corporation which leases to a licensed corporation the
4 track facility at which it conducts pari-mutuel horse races or
5 which owns 25% or more of the stock of the licensed corporation
6 shall be made, there shall be filed, simultaneously, with the
7 corporation which issued such stock the following:
8 (1) In duplicate, an affidavit executed by the
9 transferee stating that he is to be the sole beneficial owner
10 thereof, and whether or not he:
11 (i) has been convicted of a crime involving moral
12 turpitude;
13 (ii) has been engaged in bookmaking or other forms
14 of illegal gambling;
15 (iii) has been found guilty of any fraud or
16 misrepresentation in connection with racing or breeding;
17 (iv) has been guilty of any violation or attempt to
18 violate any law, rule or regulation of any racing
19 jurisdiction, for which suspension from racing might be
20 imposed in such jurisdiction; or
21 (v) has violated any rule, regulation or order of
22 the commissions.
23 If the transferee is not, or is not to be, the sole
24 beneficial owner, there shall be annexed to the affidavit of
25 the transferee, and expressly stated in such affidavit, a
26 true and complete copy of all terms of the agreement pursuant
27 to which the stock is to be held by the transferee, including
28 a detailed statement of the interest of each person who is to
29 have any interest therein.
30 (2) In duplicate, an affidavit executed by each person
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1 for whom the stock, or any interest therein, is to be held by
2 the transferee, setting forth whether or not the affiant:
3 (i) has been convicted of a crime involving moral
4 turpitude;
5 (ii) has engaged in bookmaking or other forms of
6 illegal gambling;
7 (iii) has been found guilty of any fraud or
8 misrepresentation in connection with racing or breeding;
9 (iv) has been guilty of any violation or attempt to
10 violate any law, rule or regulation of any racing
11 jurisdiction, for which suspension from racing might be
12 imposed in such jurisdiction; or
13 (v) has violated any rule, regulation or order of
14 the commissions.
15 To each of the affidavits shall be annexed, and expressly
16 stated in such affidavit, a true and complete copy of all the
17 terms of the agreement pursuant to which stock is to be held
18 by the transferee, including a detailed statement of the
19 interest of each person who is to have any interest therein.
20 The corporation shall file with the appropriate commission
21 one of each duplicate affidavits.
22 (b) If, after the filing of any affidavit required to be
23 filed, there shall be any change in the status of any affiant
24 with respect to any of the matters set forth in subsection
25 (a)(1) of the affidavit filed, the affiant shall file with the
26 corporation with which his affidavit was so filed a new
27 affidavit, executed by him in duplicate, setting forth the
28 change of status and the corporation shall file one of these
29 affidavits with the appropriate commission.
30 (c) Whenever any change shall be made in the amount, nature
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1 or of the interest of any person having an interest in stock of
2 any corporation, or any new interest shall be created therein,
3 without a transfer as provided, the record owner of the stock,
4 and each person whose interest has been attempted to be changed
5 or created, shall file with the corporation which issued the
6 stock, in duplicate, affidavits as provided by subsection (a)(1)
7 and (2), except that these affidavits need not include the
8 matter referred to in subsection (a) unless then required
9 pursuant to subsection (b) and one copy thereof shall be filed
10 by the corporation with the appropriate commission.
11 (d) If the appropriate commission determines that it is
12 inconsistent with the public interest, convenience, or
13 necessity, or with the best interest of racing generally, that
14 any person continue to be a stockholder of record, or the
15 beneficial owner of any interest in stock standing in the name
16 of another in any licensed corporation or of any corporation
17 which leases to such licensed corporation the track at which it
18 conducts pari-mutuel horse racing or which owned 25% or more of
19 the stock of the licensee, the appropriate commission shall have
20 full power and authority to order each stockholder or beneficial
21 owner to dispose of his stock or interest within a period of
22 time to be specified by the appropriate commission, which period
23 the appropriate commission shall have full power to extend.
24 (e) If the commissions shall make any order or direction as
25 provided in subsection (d), the person aggrieved shall be given
26 notice of the time and place of a hearing before the appropriate
27 commission, at which time the appropriate commission will hear
28 the person in reference thereto.
29 Section 205. Number of horse racing corporations.
30 (a) No more than six corporations shall be licensed by the
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1 State Horse Racing Commission to conduct a pari-mutuel meet or
2 meets. No corporation licensed under this act to conduct harness
3 racing with pari-mutuel wagering or under the act of December
4 22, 1959 (P.L.1978, No.728), referred to as the Pennsylvania
5 Harness Racing Law, shall be licensed to conduct thoroughbred
6 horse racing with pari-mutuel wagering.
7 (b) No more than five corporations shall be licensed by the
8 State Harness Racing Commission to conduct a pari-mutuel meet or
9 meets. No corporation licensed under this act to conduct
10 thoroughbred horse racing with pari-mutual wagering or under the
11 act of December 11, 1967 (P.L.707, No.331), referred to as the
12 Pennsylvania Thoroughbred Horse Racing Law, shall be licensed to
13 conduct harness horse racing with pari-mutuel wagering.
14 Section 206. Responsibilities of the Department of Revenue.
15 The Department of Revenue is charged with the financial
16 administration of pari-mutuel wagering under this act, as
17 supplemented by the rules and regulations of the commissions.
18 The Department of Revenue shall have authority to prescribe the
19 forms and the system of accounting to be employed, and through
20 its representatives shall, at all times, have power of access
21 to, and examination of, any equipment relating to such wagering.
22 Section 207. Allocation of racing days.
23 (a) Up to 125 but no less than 25 racing days shall be
24 allocated to each licensed corporation conducting thoroughbred
25 horse race meetings in any calendar year; except, that upon
26 request, the State Horse Racing Commission may grant up to an
27 additional 25 racing days over the 125 days to a licensed
28 corporation in each calendar year, if racing meet schedules can
29 accommodate these extra days. Whenever two or more corporations
30 licensed to conduct racing at the same facility apply to the
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1 State Horse Racing Commission for an allocation of racing days
2 at the same facility, the commission shall allocate the racing
3 days in the following manner:
4 (1) If there is an agreement between the licensed
5 corporations as to the allocation of racing days then as
6 provided for therein.
7 (2) If there is no agreement between the licensed
8 corporations as to the allocation of racing days, then
9 equally between them.
10 (b) No more than 125 racing days shall be allocated to each
11 licensed corporation conducting harness horse race meetings in
12 any calendar year. Every corporation shall hold its license
13 under the provisions of section 209. The State Harness Racing
14 Commission shall allocate the racing days in accordance with the
15 following guidelines:
16 (1) A licensed corporation that has an ownership
17 interest in the facility at which the racing days are to be
18 conducted shall be granted up to 125 racing days in any
19 calendar year upon request to the State Harness Racing
20 Commission. The State Harness Racing Commission shall grant
21 all racing days requested by licensed corporations described
22 in this paragraph before any other racing days are granted to
23 any other licensed corporation that desires to conduct a meet
24 at the same facility owned in part or in whole by a licensed
25 corporation that also desires to conduct a meet there.
26 (2) Whenever one or more licensed corporations that have
27 an ownership interest in the facility at which the racing
28 days are to be conducted apply to the State Harness Racing
29 Commission for an allocation of racing days, the State
30 Harness Racing Commission shall allocate an equal number of
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1 racing days to each licensed corporation or to each licensed
2 corporation based upon an agreement between the licensed
3 corporations as to the allocation of racing days.
4 (3) Upon request the State Harness Racing Commission may
5 grant up to an additional 25 racing days over the 125 racing
6 days to a licensed corporation in each calendar year, if
7 racing meet schedules can accommodate these extra racing days
8 and if each licensed corporation shall have been allocated
9 racing days.
10 (4) For purposes of this section, an ownership interest
11 shall mean that a licensed corporation directly or through a
12 parent or subsidiary has at least 35% equity interest in the
13 track facility at which it conducts harness horse race
14 meetings or is the primary tenant at such facility. For
15 purposes of this subsection, a primary tenant shall be that
16 licensed corporation, if any, which is a tenant conducting
17 horse race meetings at a track facility at which no licensed
18 corporation conducting horse race meetings has directly or
19 through a parent or subsidiary at least a 35% equity interest
20 in such facility, and if there is more than one such tenant
21 at any such facility during the year prior to the year for
22 which dates are requested, then among or between such tenants
23 the primary tenant, if any, shall be designated by agreement
24 among or between those licensed corporations which propose to
25 conduct horse race meetings at the said track facility during
26 the year for which dates are requested.
27 (c) The commissions shall certify to the Secretary of the
28 Department of Revenue within 20 days after the allocation of
29 racing days to licensed corporations the following information:
30 (1) the names and addresses of the corporations;
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1 (2) the names and addresses of the presidents and
2 general managers of the corporations;
3 (3) the names and locations of the facilities where the
4 racing days are to be conducted;
5 (4) the number of racing days allocated to each
6 corporation; and
7 (5) a numbered list of each racing day assigned to each
8 calendar day of the year for the purposes of taxation.
9 (d) If a racing day is cancelled by a licensed corporation
10 for reasons beyond its control, the appropriate commission shall
11 grant the licensed corporation the right to conduct that racing
12 day in the same or the next ensuing calendar year, if schedules
13 permit. The racing day for purposes of taxation under section
14 222 shall be at the lowest tax rate at which the licensed
15 corporation conducted a racing day during that year.
16 Section 208. State admissions taxes.
17 (a) Every corporation holding a thoroughbred horse race
18 meeting under this act shall collect, in addition to the
19 admission price of tickets sold or otherwise disposed of, for
20 each meeting held by the corporation, a tax equivalent to 15% of
21 the admission price, or 15¢ whichever is greater. In case of
22 failure to collect the tax, the tax shall be imposed upon the
23 corporation holding the race meeting. The tax shall be paid to
24 the Department of Revenue within ten days of collection. The
25 amounts collected shall be paid into the State Treasury to the
26 credit of the State Horse Racing Fund. Before any corporation
27 liable to pay the tax shall hold any race meeting, or exercise
28 any of the powers conferred by this act, the corporation shall
29 pay all taxes due, and shall file a statement with the
30 Department of Revenue containing the name of the place and
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1 stating the time when the races are to be held. Nothing in this
2 section shall apply to a race meeting conducted by any state,
3 county or other agricultural association. Retroactive to
4 September 1, 1981 and thereafter, the admission tax shall be
5 decreased to a tax equivalent to 10% of the admission price.
6 Then on September 1, 1982 and thereafter, the admission tax
7 shall be decreased to a tax equivalent to 5% of the admission
8 price.
9 (b) Every corporation holding a harness horse race meeting
10 shall collect, in addition to the admission price of tickets
11 sold or otherwise disposed of, for each such meeting held by the
12 corporation, a tax equivalent to 5% of the admission price. In
13 case of failure to collect the tax, the tax shall be imposed
14 upon the corporation holding the race meeting. The tax shall be
15 paid to the Department of Revenue within ten days after the
16 close of each race meeting. The amounts collected shall be paid
17 into the State Treasury to the credit of the State Harness
18 Racing Fund. Before any corporation liable to pay the tax shall
19 hold any race meeting, or exercise any of the powers conferred
20 by this act, the corporation shall pay all taxes due and file a
21 statement with the Department of Revenue containing the name of
22 the place and stating the time when the races are to be held.
23 Nothing in this section shall apply to a race meeting conducted
24 by any state, county or other agricultural association.
25 (c) The Department of Revenue shall have the power to
26 examine the books and records of the corporation conducting any
27 horse race meeting and may hear testimony and take proofs and
28 material for its information, or from any other data which shall
29 be satisfactory to it. The Department of Revenue may order and
30 state an account for the tax due the State, together with the
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1 expense of such examination. A penalty of 5% and interest at the
2 rate of 1% per month from the due date to the date of payment of
3 the tax shall be payable in case any tax imposed by this section
4 is not paid when due.
5 Section 209. Licenses for horse race meetings.
6 (a) Any corporation desiring to conduct horse race meetings
7 at which pari-mutuel wagering shall be permitted may apply to
8 the appropriate commission for a license. If, in the judgment of
9 the appropriate commission, the public interest, convenience or
10 necessity will be served and a proper case for the issuance of
11 the license is shown, the appropriate commission may issue the
12 license. The license shall remain in effect so long as the
13 licensed corporation complies with all conditions, rules and
14 regulations and provisions of this act. A commission may revoke
15 or suspend the license of any corporation, if the commission
16 finds by a preponderance of the evidence that the corporation,
17 its officers, employees or agents, has not complied with the
18 conditions, rules, regulations and provisions of this act and
19 that it would be in the public interest, convenience or
20 necessity to revoke or suspend the license.
21 (b) Every license shall be issued upon condition:
22 (1) that every horse race meeting at which pari-mutuel
23 wagering is conducted shall be subject to the supervision of
24 and to the reasonable rules and regulations prescribed by the
25 appropriate commission;
26 (2) that pari-mutuel wagering conducted shall also be
27 subject to the supervision of and to the reasonable
28 regulations prescribed by the Department of Revenue. Any
29 license may also be issued upon any other condition that the
30 appropriate commission shall determine to be necessary or
19810S0962B1495 - 20 -
1 desirable to insure that the public interest, convenience or
2 necessity is served; and
3 (3) that the corporation can prove by a preponderance of
4 the evidence that it has obtained the use of a facility to
5 conduct horse race meetings. The proof may be demonstrated by
6 documentation of an ownership interest in the facility or by
7 a written lease for use of the facility. For purposes of this
8 section, an ownership interest shall mean that a licensed
9 corporation directly or through a parent or subsidiary has at
10 least a 35% equity interest in the track facility at which it
11 conducts horse race meetings or is the primary tenant at such
12 facility. For purposes of this subsection, a primary tenant
13 shall be that licensed corporation, if any, which is a tenant
14 conducting horse racing meetings at a track facility at which
15 no licensed corporation conducting horse race meetings has
16 directly or through a parent or subsidiary at least a 35%
17 equity interest in such facility, and if there is more than
18 one such tenant at any such facility during the year prior to
19 the year for which dates are requested, then among or between
20 such tenants the primary tenant, if any, shall be designated
21 by agreement among or between those licensed corporations
22 which propose to conduct horse race meetings at the said
23 track facility during the year for which dates are requested.
24 (c) Applications for licenses shall be in the form
25 prescribed by the appropriate commission and shall contain
26 information, material or evidence as the appropriate commission
27 may require. The term "racing week" shall include Sunday at the
28 discretion of the licensed corporation.
29 (d) In considering an application for a license to a
30 corporation, the commissions may give consideration to the
19810S0962B1495 - 21 -
1 number of licenses already granted. No license shall be granted
2 to any track located within ten miles of a State, county or
3 other political subdivision fair conducting horse racing unless
4 the association, corporation, society, political subdivision or
5 State agency conducting the fair shall affirmatively waive
6 objection to the issuance of the license for dates within the
7 period.
8 (e) The commissions may refuse to grant, may revoke, or may
9 suspend a license to a corporation, if it shall determine that:
10 (1) Any officer, director, member or stockholder of the
11 corporation applying for a license or of any corporation
12 which owns stock in or shares in the profits, or participates
13 in the management of the affairs of the applicant, or which
14 leases to the applicant the track where it shall operate:
15 (i) has been convicted of a crime involving moral
16 turpitude;
17 (ii) has engaged in bookmaking or other forms of
18 illegal gambling;
19 (iii) has been found guilty of any fraud or
20 misrepresentation in connection with racing or breeding;
21 (iv) has been guilty of any violation or attempt to
22 violate any law, rule or regulation of any racing
23 jurisdiction, for which suspension from racing might be
24 imposed in such jurisdiction; or
25 (v) has violated any rule, regulation or order of
26 the commissions.
27 (2) The experience, character or fitness of any officer,
28 director or stockholder of any of the corporations is such
29 that the participation of the person in horse racing or
30 related activities would be inconsistent with the public
19810S0962B1495 - 22 -
1 interest, convenience or necessity or with the best interests
2 of racing. If the commission determines that the interest of
3 any stockholder referred to in this paragraph or in paragraph
4 (1) is insufficient to affect adversely the conduct of pari-
5 mutuel horse racing by the corporation in accordance with the
6 provisions of this act, the commissions may disregard the
7 interest in determining whether or not to grant a license to
8 the corporation.
9 (3) The applicant is not the owner or the lessee of the
10 track at which it will conduct pari-mutuel horse racing under
11 the license applied for, or that any person, firm,
12 association or corporation other than the applicant shares,
13 or will share, in the profits of the applicant, other than by
14 dividends as a stockholder, or participates, or will
15 participate in the management of the affairs of the
16 applicant.
17 (4) The corporation does not have the use of a facility
18 to conduct horse race meetings. Such use must be proved by a
19 preponderance of the evidence. The proof may be demonstrated
20 by documentation of an ownership interest in the facility or
21 by a written lease for use of the facility.
22 (5) If the appropriate commission finds that a licensed
23 corporation does not have proof of a written lease of a
24 facility to conduct horse race meetings, it may suspend its
25 license for a period of two years. After the expiration of
26 the suspension, the appropriate commission may then revoke
27 the license, if the licensed corporation has failed to
28 contract for a facility at which to conduct horse race
29 meetings.
30 (f) The commissions shall also have power to refuse to
19810S0962B1495 - 23 -
1 grant, revoke or suspend a license:
2 (1) To any corporation, the charter or certificate of
3 incorporation of which shall fail to contain a provision
4 requiring any stockholder, upon written demand of the
5 corporation, to sell his stock to the corporation at a price
6 to be fixed by the appropriate commission, provided the
7 demand be made pursuant to written direction of the
8 appropriate commission and from the date of the making of the
9 demand prohibiting the transfer of the certificate of stock
10 except to the corporation.
11 (2) To any corporation which, having been a licensee,
12 has failed, in the opinion of the appropriate commission, to
13 properly maintain its track and plant in good condition or
14 has failed to make adequate provision for rehabilitation and
15 capital improvements to its track and plant.
16 (g) Pending final determination of any question under this
17 section, the commissions may issue a temporary license upon such
18 terms and conditions as they see fit to effectuate the
19 provisions of this act.
20 (h) The commissions shall have power to direct that every
21 certificate of stock of a licensed corporation shall bear a
22 legend, plainly and prominently imprinted upon the face of the
23 certificate, reading: "This certificate of stock is transferable
24 only subject to the provisions of the 'Race Horse Industry
25 Reform Act'." The provisions of this subsection shall not apply
26 to stock heretofore issued by a licensed corporation under the
27 provisions of the act of December 11, 1967 (P.L.707, No.331), as
28 amended, and referred to as the Pennsylvania Thoroughbred Horse
29 Racing Law or of the act of December 22, 1959 (P.L.1978,
30 No.728), as amended, and referred to as the Pennsylvania Harness
19810S0962B1495 - 24 -
1 Racing Law.
2 Section 210. Shareholders.
3 (a) Each licensed corporation shall provide the appropriate
4 commission with a complete list of all its shareholders,
5 indicating the number of shares by each shareholder.
6 (b) It shall be the duty of each licensed corporation within
7 ten days after any transfer of stock in such licensee, to notify
8 the appropriate commission of the transfer.
9 (c) Each certificate of stock issued by a licensed
10 corporation shall have noted on the face thereof that the person
11 whose name is indicated as the owner of the shares of stock by
12 the certificate is the sole and absolute owner, and that he is
13 not holding the shares of stock or any portion of the shares of
14 stock represented by the certificate in trust for any person,
15 partnership, firm or corporation who or which is prohibited from
16 owning the shares of stock. If any of the shares of stock
17 represented by a certificate of stock are held subject to the
18 terms of either an inter vivos or testamentary trust for the
19 benefit of any person who could lawfully own such stock in his
20 own name, the fact shall be noted on the face of the certificate
21 any a copy of the instrument which created the trust shall be
22 attached. A duplicate copy of the instrument which created the
23 trust shall be filed with the appropriate commission.
24 (d) No property rights shall exist in any shares of stock of
25 any licensed corporation which are held in trust contrary to the
26 provisions of this section and the same shall be forfeited to
27 the Commonwealth after reasonable notice and upon hearing and
28 proof thereof in any suit instituted by the Attorney General of
29 Pennsylvania. Upon it being established that the stock is
30 subject to forfeiture by legal adjudication, the appropriate
19810S0962B1495 - 25 -
1 commission shall sell the forfeited stock at public sale, upon
2 proper notice, to the highest bidder. The proceeds from the sale
3 shall be deposited in the General Fund of the Commonwealth of
4 Pennsylvania.
5 (e) As used in this section, the term "licensed corporation"
6 shall include any licensed corporation as defined in section 102
7 and also any firm, association or corporation which owns or
8 leases to any licensed association or corporation a race track
9 at which pari-mutuel racing is conducted, or any firm,
10 association or corporation which participates in the management
11 of any such licensed corporation.
12 Section 211. Prohibition of interest by public officers, public
13 employees and party officers in pari-mutuel racing
14 activities.
15 (a) No public officer, public employee or party officer
16 shall:
17 (1) hold any license to conduct a pari-mutuel meet from
18 the commissions;
19 (2) own or hold, directly or indirectly, any proprietary
20 interest, stock or obligation of any firm, association or
21 corporation:
22 (i) which is licensed by the commissions to conduct
23 pari-mutuel racing;
24 (ii) which is licensed to conduct its occupation,
25 trade or business at race tracks at which pari-mutuel
26 race meets are conducted;
27 (iii) which owns or leases to any licensed
28 association or corporation a race track at which pari-
29 mutuel racing is conducted; or
30 (iv) which participates in the management of any
19810S0962B1495 - 26 -
1 licensed corporation conducting pari-mutuel racing; and
2 (3) hold any office or employment with any firm,
3 association or corporation specified in paragraph (2); or
4 (4) sell or be a member of a firm or own 10% or more of
5 the stock of any corporation which sells any goods or
6 services to any firm, association or corporation specified in
7 paragraph (2).
8 The provisions of paragraph (3) shall not apply to a public
9 employee other than a police officer or paid employee of a
10 police department, sheriff's office, district attorney's office
11 or other law enforcement agency so long as such employment of
12 employees of a political subdivision may be prohibited by
13 ordinance, resolution or local law.
14 (b) A knowing and willful violation of this section shall be
15 cause for removal from public office, public employment or party
16 office. In any such case, the public officer, public employee or
17 party officer, violating this section, shall be removed from
18 office by appropriate authority having the power of removal.
19 (c) The following words and phrases when used in this act
20 shall have, unless the context clearly indicates otherwise, the
21 meanings given to them in this section:
22 "Party officer." The following members or officers of any
23 political party:
24 (1) a member of a national committee;
25 (2) a chairman, vice-chairman, secretary, treasurer or
26 counsel of a State committee or member of the executive
27 committee of a State committee;
28 (3) a county chairman, vice-chairman, counsel, secretary
29 or treasurer of a county committee; or
30 (4) a city chairman, vice-chairman, counsel, secretary
19810S0962B1495 - 27 -
1 or treasurer of a city committee.
2 "Public employee." Every person employed by the Commonwealth
3 or any political subdivision thereof.
4 "Public officer." Every person elected to any public office
5 of the Commonwealth or any political subdivision thereof.
6 (d) The commissions shall have the power to refuse to grant
7 or to revoke or suspend a license of any firm, association or
8 corporation which aids or knowingly permits or conspires to
9 permit any public officer, public employee or party officer to
10 acquire or retain any interest prohibited by this section.
11 (e) The provisions of this section shall allow any person
12 other than members, employees or appointees of the commissions
13 to own and to be licensed to race a horse at any licensed race
14 track.
15 Section 212. Officials at horse race meetings.
16 (a) At all thoroughbred horse race meetings licensed by the
17 State Horse Racing Commission, qualified stewards, judges and
18 starters shall be approved by the commission. These officials
19 shall enforce the rules and regulations of the State Horse
20 Racing Commission and shall render written reports of the
21 activities and conduct of such race meetings to the State Horse
22 Racing Commission. The compensation of these judges and starters
23 shall be paid by the corporation conducting the race meeting.
24 (b) At all harness race meetings licensed by the State
25 Harness Racing Commission, qualified judges and starters shall
26 be approved by the commission. No person shall be approved as a
27 judge or starter unless he is licensed by the United States
28 Trotting Association as a duly qualified pari-mutuel race
29 meeting official. The officials shall enforce the rules and
30 regulations of the State Harness Racing Commission and shall
19810S0962B1495 - 28 -
1 render regular written reports of the activities and conduct of
2 the race meetings to the State Harness Racing Commission. The
3 compensation of the judges and starters PRESIDING JUDGE AND TWO <--
4 ASSOCIATE JUDGES AT EACH RACE TRACK shall be fixed and paid by
5 the State Harness Racing Commission. The commission shall adopt
6 a selection process to approve the appointment of these
7 officials. The licensed corporations shall participate in this
8 selection process for approval of these officials.
9 Section 213. Licenses for commissioners, employees and
10 participants at horse race meetings.
11 (a) Each commission shall license trainers, jockeys,
12 drivers, persons participating in thoroughbred and harness horse
13 race meetings, horse owners and all other persons and vendors
14 exercising their occupation or employed at thoroughbred and
15 harness horse race meetings. Each commission shall fix the
16 license fees to be paid by persons or corporations so licensed;
17 provided, however, that such occupational license fees shall not
18 exceed $100. All fees shall be paid to the commissions and by
19 them paid into the State Treasury through the Department of
20 Revenue and credited to the respective State Horse Racing Fund
21 or State Harness Racing Fund. The application shall be in the
22 form and contain the information as each commission may require.
23 All licenses may be issued for more than a one year term. The
24 commissions may also stagger the termination dates and renewal
25 dates of the licenses, in order to process and issue the
26 licenses in an orderly manner. The commissions shall fix the
27 manner by which licenses are processed and issued by rule or
28 regulation.
29 (b) All commissioners and all employees, agents and
30 representatives of the commissions shall be licensed under this
19810S0962B1495 - 29 -
1 act. There shall be no fee for this license. The commissions
2 shall fix by rule or regulation the manner in which these
3 licenses under this subsection shall be processed and issued.
4 (c) If the commissions find that the experience, character
5 and general fitness of the applicant are such that the
6 participation of the person in horse race meets is consistent
7 with the public interest, convenience and necessity, and with
8 the best interests of racing generally in conformity with the
9 purposes of this act, it may grant a license.
10 (d) The commissions may refuse to issue a license under this
11 section, if they shall find that the applicant:
12 (1) Has been convicted of a crime involving moral
13 turpitude.
14 (2) Has engaged in bookmaking or other form of illegal
15 gambling.
16 (3) Has been found guilty of any fraud or
17 misrepresentation in connection with racing or breeding.
18 (4) Has been found guilty of any violation or attempt to
19 violate any law, rule or regulation of racing in any
20 jurisdiction, for which suspension from racing might be
21 imposed in that jurisdiction.
22 (5) Has violated any rule, regulation or order of the
23 commissions.
24 (e) Each commission shall have the right to inspect all
25 contracts between licensed corporations and vendors for goods
26 and services. Each commission shall require by rule or
27 regulation that vendors disclose to the appropriate commission
28 all principal officers and a description of their interests in
29 the vendors' business. Failure to properly disclose this
30 information shall constitute grounds to deny, to revoke or to
19810S0962B1495 - 30 -
1 suspend any vendor's license issued under the provisions of this
2 act.
3 (f) The commissions may suspend or revoke a license issued
4 under this section, if it shall determine that:
5 (1) The applicant or licensee:
6 (i) has been convicted of a crime involving moral
7 turpitude;
8 (ii) has engaged in bookmaking or other form of
9 illegal gambling;
10 (iii) has been found guilty of any fraud in
11 connection with racing or breeding;
12 (iv) has been guilty of any violation or attempt to
13 violate any law, rule or regulation of any racing
14 jurisdiction for which suspension from racing might be
15 imposed in that jurisdiction; or
16 (v) who has violated any rule, regulation or order
17 of the commissions.
18 (2) That the experience, character or general fitness of
19 any applicant or licensee is such that the participation of
20 the person in horse racing or related activities would be
21 inconsistent with the public interest, convenience or
22 necessity or with the best interests of racing.
23 (g) Pending final determination of any question under this
24 section, the commissions may issue a temporary license upon such
25 terms and conditions as they may been necessary or proper to
26 effectuate the provisions of this act.
27 Section 214. Power of commissions to impose fines and
28 penalties.
29 (a) In addition to their power to suspend or revoke licenses
30 granted by them, the commissions are authorized and empowered to
19810S0962B1495 - 31 -
1 impose fines upon any corporation, association or person
2 participating in any way in any horse race meet at which pari-
3 mutuel wagering is conducted, other than as a patron and whether
4 licensed by the commissions or not, for a violation of any
5 provision of this act or the rules and regulations promulgated
6 by the commissions, not exceeding $5,000 for each violation,
7 which fines shall be paid into the State Treasury through the
8 Department of Revenue and credited to the General Fund.
9 Following exhaustion of any administrative remedies promulgated
10 by the commissions for such purpose, the action of the
11 commissions in imposing any monetary fine shall be subject to
12 appeal to the Commonwealth Court and as approved by that court
13 system, or if no court appeal is taken, then as imposed, may be
14 collected in an action of assumpsit.
15 (b) No officer or employee of a licensed corporation or
16 their spouses, PARENTS, FATHERS-IN-LAW, MOTHERS-IN-LAW, sons, <--
17 daughters, sons-in-law or daughters-in-law shall have any direct
18 or indirect interest in a race horse that is participating in a
19 race at a meet at which such person or heretofore-mentioned
20 relative holds any interest in the licensed corporation
21 conducting the meet and/or the track facility. An officer or
22 employee of a licensed corporation or their spouses, PARENTS, <--
23 FATHERS-IN-LAW, MOTHERS-IN-LAW, sons, daughters, sons-in-law or
24 daughters-in-law may have an interest in a race horse and enter
25 it at meets that are conducted by licensed corporations or at
26 race tracks in which such a person or heretofore-mentioned
27 relative holds no direct or indirect interest. Each commission
28 shall impose a fine or penalty upon any person for violation of
29 this subsection as provided for under subsection (a). For
30 purposes of this subsection an interest shall not include:
19810S0962B1495 - 32 -
1 (1) any breeder's fund award as a result of a horse
2 being a registered Pennsylvania-bred thoroughbred horse under
3 the provisions of section 223; and
4 (2) any interest in a licensed corporation that was held
5 by a person, partnership, association or corporation on or
6 before December 22, 1973.
7 Section 215. Security personnel; powers and duties; penalty.
8 (a) The commissions and any licensed corporations are
9 authorized and empowered to employ persons as security
10 personnel. These persons shall possess the powers and duties of
11 a peace officer with respect to the enforcement of the criminal
12 laws of the Commonwealth within the race meeting grounds or
13 enclosure. The designated persons are also authorized to
14 interrogate and eject from the race meeting grounds or enclosure
15 any persons suspected of violating any rule or regulation
16 promulgated by the commissions. The commissions may refuse
17 admission to and eject from enclosure of the race track operated
18 by any licensed corporation, any person whose presence there is,
19 in the judgment of the commission, inconsistent with the orderly
20 or proper conduct of a race meeting or whose presence or conduct
21 is deemed detrimental to the best interest of horse racing. The
22 action of the commissions in refusing any person admission, or
23 ejecting him from, a race meeting ground or enclosure shall not
24 be because of the race, creed, color, sex, national origin or
25 religion of that person and shall be reviewable by the
26 Commonwealth Court.
27 (b) Except as provided for in subsections (c) and (d), any
28 licensed corporation may refuse admission to and eject from the
29 enclosure of the race track operated by any association any
30 person except that no person shall be refused admission or be
19810S0962B1495 - 33 -
1 ejected because of the race, color, creed, sex, national origin
2 or religion of that person.
3 (c) A licensed corporation may refuse admission to and eject
4 from the enclosure of the race track operated by the
5 corporation, any person licensed by the commissions under
6 section 213, employed at his occupation at the race track, whose
7 presence there is deemed detrimental to the best interests of
8 horse racing, citing the reasons for that determination. The
9 action of the corporation in refusing the person admission to or
10 ejecting him from a race meeting ground or enclosure shall have
11 immediate effect. The person refused admission or ejected shall
12 receive a hearing before the appropriate commission, if
13 requested, pursuant to rules and regulations adopted for that
14 purpose by the appropriate commission and a decision rendered
15 following that hearing.
16 (d) A licensed corporation may not refuse admission to or
17 eject a law enforcement official while that official is actually
18 engaged in the performance of official duties.
19 (e) A person found within a race track enclosure after
20 having been refused admission thereto or ejected therefrom
21 shall, upon conviction thereof in a summary proceeding, be
22 sentenced to pay a fine not exceeding $300 or undergo
23 imprisonment for a term not exceeding 90 days, or both.
24 Section 216. Interstate simulcastings of horse races.
25 Each commission may, upon request by any licensed
26 corporation, grant permission for electronically televised
27 simulcasts of horse races to be operated by the licensed
28 corporation at the race track enclosure where a horse race
29 meeting is being conducted during, between, before or after
30 posted races for that racing day. The simulcasts shall be
19810S0962B1495 - 34 -
1 limited to horse races conducted at facilities outside this
2 Commonwealth and televised to race track enclosures within this
3 Commonwealth. All simulcasts of horse races from outside this
4 Commonwealth shall also comply with the provisions of the
5 Interstate Horse Racing Act of 1978, 92 Stat. 1811, 15 USC 3001
6 et seq. All forms of pari-mutuel wagering as described under
7 section 221 shall be allowed on horse races to be televised by
8 simulcasting. Each commission may promulgate rules or
9 regulations to regulate the wagering and the operation of these
10 horse races. All moneys wagered by patrons on these horse races
11 shall be computed in the amount of money wagered each racing day
12 for purposes of taxation under section 222.
13 Section 217. Refunds.
14 (a) Money received by the commissions may, within one year
15 from receipts thereof, be refunded, to the party for whose
16 account the same were received, on proof satisfactory to the
17 commissions that:
18 (1) the moneys were in excess of the amount required by
19 law;
20 (2) the license for which application was made has been
21 refused by the commission;
22 (3) the moneys were received as a fine and the
23 commission has, after review, reduced the amount of the fine;
24 or
25 (4) upon appeal, the court reduced or remitted the fine
26 imposed and paid.
27 (b) Refunds shall, upon approval by the commission and after
28 approval by the Board of Finance and Revenue, be paid from any
29 moneys in the respective State Horse Racing Fund or State
30 Harness Racing Fund.
19810S0962B1495 - 35 -
1 Section 218. Place and manner of conducting pari-mutuel
2 wagering.
3 (a) Every licensed corporation shall provide during a horse
4 race meeting a place or places within the race track enclosure
5 at which the licensed corporation shall conduct the pari-mutuel
6 system of wagering by its patrons on the results of horse races
7 held at such meetings or televised to the race track enclosure
8 by simulcasting. The licensed corporation shall erect a sign or
9 board upon which shall be displayed the approximate straight
10 odds on each horse in any race; the value of a winning mutuel
11 ticket, straight, place or show on the first three horses in the
12 race; the elapsed time of the race; the value of a winning daily
13 double ticket, if a daily double be conducted, and any other
14 information that the commissions may deem necessary for the
15 guidance of the general public. The commissions may prescribe,
16 by rule, the type and kind of equipment to be used for the
17 display of the foregoing information.
18 (b) Each commission may upon request by any licensed
19 corporation grant permission to the licensed corporation to
20 conduct a telephone account wagering system; provided, however,
21 that all telephone messages to place wagers must be to a place
22 within the rack track enclosure: And further provided, That all
23 moneys used to place telephone wagers be on deposit in an amount
24 sufficient to cover the wager at the race track where the
25 account is opened. Each commission may promulgate rules or
26 regulations to regulate telephone account wagering. All moneys
27 wagered as a result of telephone account wagering shall be
28 included in the amount wagered each racing day for purposes of
29 taxation under section 222 and shall be included in the same
30 pari-mutuel pools for each posted race. All telephone account
19810S0962B1495 - 36 -
1 wagering systems shall be solely operated by the licensed
2 corporations.
3 (c) A licensed corporation shall only accept and tabulate a
4 wager by a direct telephone call from the holder of a telephone
5 wagering account. No person shall directly or indirectly act as
6 an intermediary, transmitter or agent in the placing of wagers
7 for a holder of a telephone wagering account. No person shall in
8 any manner place any wager by telephone to a facility in the
9 race track enclosure on behalf of a holder of a telephone
10 wagering account. Only the holder of a telephone wagering
11 account shall place a telephone wager. Any person violating this
12 subsection shall be guilty of a misdemeanor of the first degree.
13 Section 219. Books and records of pari-mutuel wagering.
14 Every corporation that conducts a horse race meeting at which
15 pari-mutuel wagering is authorized, shall keep books and records
16 so as to clearly show by separate record the total amount of
17 money contributed to every pari-mutuel pool. The Department of
18 Revenue or its authorized representative shall have access to
19 all books and records for the purpose of examining the same and
20 ascertaining whether the proper amount due to the State is being
21 paid by the licensed corporation.
22 Section 220. Filing of certain agreements with the commissions.
23 Every corporation licensed to conduct horse race meetings at
24 which pari-mutuel wagering is permitted shall promptly after
25 entering any lease agreement concerning any concession, labor
26 management relation, hiring of designated classes of officers,
27 employees or contractors specified by the commissions or any
28 such other contract or agreement as the commissions may
29 prescribe, file with the appropriate commission a true and
30 correct copy, or an accurate summary, if oral.
19810S0962B1495 - 37 -
1 Section 221. Retention percentages for pari-mutuel pools.
2 (a) Every licensed corporation shall distribute the moneys
3 in any pari-mutuel pool to the holders of winning tickets under
4 the following requirements:
5 (1) all tickets shall be presented for payment before
6 the first day of April of the year following the year of
7 their purchase; and
8 (2) seventeen percent of the moneys plus the breakage
9 from regular wagering pools shall be retained by the licensed
10 corporations for further distribution under section 222; or
11 (3) nineteen percent of the moneys plus the breakage
12 from regular wagering pools from licensed corporations whose
13 total deposits in all pari-mutuel pools averaged less than
14 $300,000 per racing day for their previous meeting at the
15 same facility; or
16 (4) nineteen percent of the moneys plus the breakage
17 from the exacta, daily double, quinella and other wagering
18 pools involving two horses each racing day shall be retained
19 by the licensed corporations for further distribution under
20 section 222; or
21 (5) at least 25% but no more than 35% of the moneys plus
22 the breakage from the trifecta or other wagering pools
23 involving more than two horses in one or more races each
24 racing day shall be retained by the licensed corporations for
25 further distribution under section 222; and
26 (6) every corporation may retain less than 17% or 19% of
27 the moneys in the wagering pools under paragraphs (2), (3)
28 and (4) or less than 25% of the moneys in the wagering pools
29 under paragraph (5) upon approval from the appropriate
30 commission; and
19810S0962B1495 - 38 -
1 (7) every corporation may retain more than 25% but no
2 more than 35% of the moneys in the wagering pools under
3 paragraph (5) upon approval from the appropriate commission;
4 and
5 (8) all moneys remaining in the wagering pools described
6 under paragraphs (2), (3), (4), (5), (6) and (7) shall be
7 distributed to the holders of winning tickets.
8 (b) Breakage shall mean the odd cents of redistributions to
9 be made on all contributions to pari-mutuel pools exceeding a
10 sum equal to the next lowest multiple of ten.
11 (c) The commissions shall establish by rule or regulation
12 provisions for minus-pools relating to the retention
13 requirements under this section.
14 Section 222. Distribution of moneys retained from pari-mutuel
15 pools; taxation.
16 (a) At the close of each racing day, all licensed
17 corporations out of the moneys retained on that day under
18 section 221 shall distribute these moneys in the following
19 manner:
20 (1) Seven-tenths of one percent of the amount wagered
21 each racing day at thoroughbred horse race meetings shall be
22 paid through the Department of Revenue into the State
23 Treasury for credit to the Pennsylvania Breeding Fund. From
24 September 1, 1981, ending on January 1, 1982, a licensed
25 corporation conducting thoroughbred horse race meetings shall
26 pay out of the amount wagered each racing day through the
27 Department of Revenue for credit to the State Horse Racing
28 Fund a tax of 4.55%.
29 (2) Seven-tenths of one percent of the amount wagered
30 each racing day at harness horse race meetings shall be paid
19810S0962B1495 - 39 -
1 through the Department of Revenue for credit to the
2 Pennsylvania Sire Stakes Fund. From September 1, 1981, ending
3 on January 1, 1982, a licensed corporation conducting harness
4 horse race meetings, except licensed corporations in school
5 districts of the first class, shall pay out of the amount
6 wagered each day through the Department of Revenue for credit
7 to the State Harness Racing Fund a tax of 4.5%. From
8 September 1, 1981, ending on January 1, 1982, a licensed
9 corporation conducting harness horse race meetings in a
10 school district of the first class shall pay out of the
11 amount wagered each racing day through the Department of
12 Revenue for credit to the State Harness Racing Fund a tax of
13 .5%.
14 (3) There is hereby created the State Harness Racing
15 Fund and the State Horse Racing Fund. All licensed
16 corporations that conduct harness race meetings shall pay a
17 tax through the Department of Revenue for credit to the State
18 Harness Racing Fund. All licensed corporations that conduct
19 thoroughbred horse race meetings shall pay a tax through the
20 Department of Revenue for credit to the State Horse Racing
21 Fund. The tax imposed on all licensed corporations shall be a
22 percentage tax on the amount wagered each racing day and be
23 paid from the moneys retained under section 221. The tax
24 shall be computed according to the following schedule:
25 (i) For the first 35 racing days in each calendar
26 year conducted by each licensed corporation, the tax is 4
27 1/2%.
28 (ii) For the 36th racing day through to the 55th
29 racing day in each calendar year conducted by each
30 licensed corporation, the tax is 4%.
19810S0962B1495 - 40 -
1 (iii) For the 56th racing day through to the 75th
2 racing day in each calendar year conducted by each
3 licensed corporation, the tax is 3 1/2%.
4 (iv) For the 76th racing day through to the 95th
5 racing day in each calendar year conducted by each
6 licensed corporation, the tax is 3%.
7 (v) For the 96th racing day through to the 115th
8 racing day in each calendar year conducted by each
9 licensed corporation, the tax is 2 1/2%.
10 (vi) For the 116th racing day through to the 150th
11 racing day in each calendar year conducted by each
12 licensed corporation, the tax is 2%.
13 (vii) For purposes of this section, a racing day
14 shall be considered conducted after the appropriate
15 commission has certified the allocation of racing days to
16 the Secretary of the Department of Revenue under the
17 provisions of section 207(b) even if the racing day is
18 subsequently cancelled by the licensed corporation for
19 reasons beyond its control.
20 (b) The State Harness Racing Commission shall make all
21 distributions of moneys from the State Harness Racing Fund. The
22 State Horse Racing Commission shall make all distribution of
23 moneys from the State Horse Racing Fund. The commissions shall
24 distribute moneys from their respective funds in the following
25 manner:
26 (1) One million seven hundred fifty thousand dollars
27 shall be paid from each fund to school districts of the first
28 class, provided, that at least 150 racing days in each
29 calendar year are conducted by licensed corporations that
30 conduct harness horse race meetings within the jurisdiction
19810S0962B1495 - 41 -
1 of a school district of the first class. Any combination of
2 harness horse racing days conducted by licensed corporations
3 in a school district of the first class shall be added
4 together to comply with this 150 racing-day requirement. No
5 school district of the first class shall receive any moneys
6 from these funds, unless the 150 racing-day requirement is
7 met.
8 (2) An amount equivalent to four-tenths of one percent
9 of the amount wagered each racing day at harness horse race
10 meetings shall be paid by the Harness Racing Commission from
11 the Harness Racing Fund through the Department of Revenue for
12 credit to the Pennsylvania Sire Stakes Fund, beginning on
13 January 1, 1982. This amount shall be increased to seven-
14 tenths of one percent on January 1, 1983 and then finally on
15 January 1, 1984 and thereafter to 1%. These moneys are in
16 addition to the moneys distributed to the Pennsylvania Sire
17 Stakes Fund under subsection (a)(2).
18 (3) An amount EQUAL TO THE GREATER OF $750,000 FROM EACH <--
19 FUND OR THE AMOUNT equivalent to one-fourth of one percent of
20 the amount wagered each racing day at thoroughbred horse race
21 meetings and harness horse race meetings shall be paid by
22 each commission, from their respective fund through the
23 Department of Revenue to the Department of Commerce for
24 distribution by the Secretary of Commerce to eligible
25 boroughs having a population of less than 12,000, eligible
26 cities having a population of less than 12,000, eligible
27 townships having a population of less than 12,000, each of
28 their municipality authorities, or county authorities
29 authorized to service the borough or township, for projects
30 providing for the construction, rehabilitation, alteration,
19810S0962B1495 - 42 -
1 expansion or improvement of water facilities, sewage disposal
2 facilities and access roads, in amounts not to exceed 75% of
3 the cost, but not exceeding $75,000 if in accordance with
4 regulations promulgated by the Secretary of Commerce and
5 approved by the Governor. No distribution shall be made in
6 connection with any project unless it is determined that the
7 project:
8 (i) is not in conflict with programs of other
9 departments of the Commonwealth;
10 (ii) is not inconsistent with an existing
11 development plan for the municipality;
12 (iii) could not otherwise be financed;
13 (iv) will strengthen the income-producing capability
14 of the municipality, or improve the health and safety of
15 the community;
16 (v) is necessary to orderly community development;
17 and
18 (vi) does not involve other State funds.
19 (4) The salaries of employees of the commission employed
20 by or for it under the provisions of this act and the act of
21 April 9, 1929 (P.L.177, No.175), known as "The Administrative
22 Code of 1929."
23 (5) The payment of the compensation of employees of the
24 Department of Revenue when used in collecting taxes and
25 penalties imposed by this act.
26 (6) The expenses of the Secretary and the Department of
27 Agriculture incurred in administering their duties under this
28 act.
29 (7) To pay all other expenses incurred by the commission
30 in administering this act.
19810S0962B1495 - 43 -
1 (8) Eighteen percent of all remaining moneys in the
2 State Horse Racing and State Harness Racing Funds shall be
3 paid into the Pennsylvania Fair Fund and 82% shall be paid
4 into the General Fund. Moneys in the Pennsylvania Fair Fund
5 are hereby appropriated to the Department of Agriculture for
6 distribution under section 225.
7 (c) All breakage retained under section 221 by licensed
8 corporations that conduct thoroughbred horse race meetings shall
9 be distributed in the following manner:
10 (1) Fifty percent of the breakage shall be retained by
11 the licensed corporations.
12 (2) Twenty-five percent of the breakage shall be
13 retained by the licensed corporations to be used solely for
14 purses to the horsemen.
15 (3) Twenty-five percent of the breakage shall be paid to
16 the Department of Revenue for credit to the State Horse
17 Racing Fund.
18 (d) All breakage retained under section 221 by licensed
19 corporations that conduct harness horse race meetings shall be
20 distributed in the following manner:
21 (1) Fifty percent of the breakage shall be retained by
22 the licensed corporations.
23 (2) The remaining 50% of the breakage shall be retained
24 by the licensed corporations of which one-half of this
25 breakage shall be used solely by the licensed corporations
26 for claiming and nonclaiming races where entry is restricted
27 to Pennsylvania-sired horses in the following manner:
28 (i) On January 1, 1982, and thereafter at least five
29 of the horses programmed to start shall be Pennsylvania-
30 sired horses. If at least five of the horses programmed
19810S0962B1495 - 44 -
1 to start are not Pennsylvania-sired horses, then the
2 licensed corporation conducting the meet shall cancel the
3 race.
4 (ii) On January 1, 1983, and thereafter at least
5 seven of the horses programmed to start shall be
6 Pennsylvania-sired horses. If at least seven of the
7 horses programmed to start are not Pennsylvania-sired
8 horses, then the licensed corporation conducting the meet
9 shall cancel the race.
10 (iii) On January 1, 1984, and thereafter, only
11 Pennsylvania-sired horses shall be allowed to start in
12 these races. If all the positions are not filled by
13 Pennsylvania-sired horses in these races, then the
14 licensed corporation conducting the meet shall cancel the
15 race.
16 All breakage moneys due licensed corporations for the purses for
17 claiming and nonclaiming races under this paragraph but not
18 expended as a result of a race cancellation shall be carried
19 forward to the next succeeding meet by the licensed corporations
20 to be used for claiming and nonclaiming races which restrict
21 entry to Pennsylvania-sired horses under the provisions of this
22 paragraph.
23 (e) All remaining moneys retained under section 221 and not
24 heretofore distributed shall be kept by the licensed
25 corporations for their use.
26 Section 223. Pennsylvania Breeding Fund.
27 (a) There is hereby created a restricted account in the
28 State Horse Racing Fund to be known as the Pennsylvania Breeding
29 Fund which shall consist of the money appropriated under the
30 provisions of section 222 and which shall be administered by the
19810S0962B1495 - 45 -
1 State Horse Racing Commission.
2 (b) After the deduction of expenses related to the
3 administration and development of the Pennsylvania Breeding Fund
4 program incurred by the Pennsylvania Horse Breeders'
5 Association, the State Horse Racing Commission shall, by rule or
6 regulation, provide for awards as follows:
7 (1) An award of 20% of the purse earned by every
8 registered Pennsylvania-bred thoroughbred horse which
9 finishes first, second or third in any race conducted by a
10 licensed corporation under this act shall be paid to the
11 breeder of said registered Pennsylvania-bred thoroughbred
12 horse.
13 (2) An award of 10% of the purse earned by any
14 Pennsylvania-bred thoroughbred horse which finishes first,
15 second or third in any race conducted by a licensed
16 corporation under this act shall be paid to the owner of the
17 registered Pennsylvania sire which regularly stood in
18 Pennsylvania at the time of conception of said Pennsylvania-
19 bred thoroughbred horse.
20 (3) An award of 10% of the purse earned by any
21 registered Pennsylvania-bred thoroughbred horse which
22 finishes first in any race conducted by a licensed
23 corporation under this act not restricting entry to
24 registered Pennsylvania-bred thoroughbred horses shall be
25 paid to the licensed owner of said registered Pennsylvania-
26 bred thoroughbred horse at the time of winning.
27 (c) Up to one-fifth of the total of the estimated fund
28 moneys remaining each year after the deduction of expenses
29 related to the administration and development of the
30 Pennsylvania Breeding Fund program and the payment of breeder,
19810S0962B1495 - 46 -
1 stallion and owner awards, shall be divided among the licensed
2 corporations that conduct thoroughbred horse race meetings in
3 direct proportion to the rate by which each licensed corporation
4 generated the fund moneys during the previous year to be used
5 solely for purses for Pennsylvania Breeding Fund stakes races
6 which restrict entry to registered Pennsylvania-bred
7 thoroughbred horses.
8 (d) The fund moneys remaining following disbursements as
9 directed in subsection (b)(1), (2) and (3) and subsection (c)
10 shall be divided among the licensed corporations that conduct
11 thoroughbred horse race meetings in direct proportion to the
12 rate by which each licensed corporation generated the fund
13 moneys during the previous year to be used for purses as
14 follows:
15 (1) Claiming and nonclaiming Pennsylvania Breeding Fund
16 races which restrict entry to registered Pennsylvania-bred
17 thoroughbred horses.
18 (2) Claiming and nonclaiming Pennsylvania Breeding Fund
19 races which prefer registered Pennsylvania-bred thoroughbred
20 horses as starters. In these races, should eight or more
21 registered Pennsylvania-bred horses pass the entry box, the
22 race shall be considered closed to horses other than
23 registered Pennsylvania-bred thoroughbred horses.
24 (e) Those Pennsylvania Breeding Fund moneys due licensed
25 corporations as outlined in subsections (c) and (d) but not
26 expended during the calendar year may be carried forth in the
27 fund on the account of said licensed corporations to be expended
28 during the succeeding year in addition to said corporations'
29 fund moneys annually due them for purses.
30 (f) The Pennsylvania Breeding Fund Advisory Committee, under
19810S0962B1495 - 47 -
1 the jurisdiction of the State Horse Racing Commission, is hereby
2 established and shall be part of the Pennsylvania State Horse
3 Racing Commission. The commission shall consist of five members,
4 all of whom shall be residents of Pennsylvania, to be appointed
5 by the commission by June 1 of each year. The committee shall
6 consist of two members of the Pennsylvania Horse Breeders'
7 Association, one member from the licensed corporations, one
8 member from the association representing horsemen racing in
9 Pennsylvania and one member of the commission. If any member
10 other than the commission member has not been recommended by
11 June 1 of each year, the commission shall make an appointment
12 for the organization failing to so recommend a member of the
13 committee. The committee shall assist and advise the commission
14 under the provisions of this act but shall have no power in
15 administering the fund. The members of the committee shall
16 receive no compensation for their services as members.
17 (g) The State Horse Racing Commission may contract with the
18 Pennsylvania Horse Breeders' Association as the sole responsible
19 body for the registration and records of Pennsylvania-breds. The
20 Pennsylvania Horse Breeders' Association shall advise the
21 commission when called upon and shall determine the
22 qualifications for Pennsylvania-bred thoroughbred horses and
23 Pennsylvania sires. Its registration and record facts are hereby
24 declared as official Pennsylvania records. At the close of each
25 calendar year, the Pennsylvania Horse Breeders' Association,
26 through the Pennsylvania Breeding Fund Advisory Committee, shall
27 submit to the commission for its approval an itemized budget of
28 projected expenses for the ensuing year relating to the
29 administration and development of the Pennsylvania Breeding Fund
30 program. The commission, on no more than a quarterly basis,
19810S0962B1495 - 48 -
1 shall reimburse from the fund the Pennsylvania Horse Breeders'
2 Association for those expenses actually incurred in the
3 administration and development of the Breeding Fund program.
4 Section 224. Pennsylvania Sire Stakes Fund.
5 (a) There is hereby created a restricted account in the
6 State Harness Racing Fund to be known as the Pennsylvania Sire
7 Stakes Fund which shall consist of the money appropriated under
8 the provisions of section 222 and which shall be administered by
9 the State Harness Racing Commission.
10 (b) After deduction of sufficient funds to cover the State
11 Harness Racing Commission's cost of administration, 85%, unless
12 a smaller percentage is necessary in order to comply with the
13 minimum dollar requirement of subsection (e), of all remaining
14 moneys in the Pennsylvania Sire Stakes Fund shall be divided
15 among the licensed corporations that conduct harness horse race
16 meetings. Each licensed corporation shall divide the funds
17 received equally for each of:
18 (1) four two-year old races; one pace for colts, one
19 pace for fillies, one trot for colts and one trot for
20 fillies; and
21 (2) four three-year old races; one pace for colts, one
22 pace for fillies, one trot for colts and one trot for
23 fillies.
24 (c) Each allotment shall provide purse money for the
25 respective races. The purse money shall be in addition to any
26 entry fees or other funds available.
27 (d) Entry for these races shall be limited to harness horses
28 which were sired by a standard-bred stallion regularly standing
29 in Pennsylvania and each race shall be designated a Pennsylvania
30 sire stakes race. The State Harness Racing Commission shall make
19810S0962B1495 - 49 -
1 the provisions and regulations as it shall deem necessary for
2 the proper administration of the entry restriction.
3 (e) The remaining moneys in the Pennsylvania Sire Stakes
4 Fund up to a total of and not exceeding $20,000 for each
5 agricultural fair shall be divided equally among those
6 agricultural fairs conducting harness horse races for two-year
7 old and three-year old harness horses: Provided, however, That
8 in no event shall less than $225,000 be allocated from the
9 Pennsylvania Sire Stakes Fund and be divided equally among those
10 agricultural fairs conducting these races. Each fair receiving
11 the funds shall divide the total amount equally among all
12 eligible races for two-year old and three-year old harness
13 horses and shall apply the funds solely as additional purse
14 funds. Only races to which entry is restricted to Pennsylvania-
15 sired horses shall be eligible. The State Harness Racing
16 Commission shall make the provisions and regulations as it shall
17 deem necessary for the proper administration of the eligibility
18 restriction.
19 (f) The fund moneys remaining following disbursements as
20 directed in paragraphs (1), (2) and (3) of subsection (b) and
21 subsections (c), (d) and (e) shall be divided among licensed
22 corporations that conduct harness horse race meetings under this
23 act in direct proportion to the rate by which each licensed
24 corporation generated the fund moneys during the previous year
25 to be used for purses as follows:
26 (1) Claiming and nonclaiming Pennsylvania Fund races
27 which restrict entry to registered Pennsylvania-sired harness
28 horses.
29 (2) Claiming and nonclaiming Pennsylvania Fund races
30 which prefer registered Pennsylvania-sired harness horses as
19810S0962B1495 - 50 -
1 starters. In these races, should seven or more registered
2 Pennsylvania-sired harness horses pass the entry box, the
3 race shall be considered closed to horses other than
4 registered Pennsylvania-sired harness horses.
5 Section 225. Pennsylvania Fair Fund.
6 (a) There is hereby created the Pennsylvania Fair Fund which
7 shall consist of the money appropriated under the provisions of
8 section 222 and which shall be administered by the Secretary of
9 Agriculture.
10 (b) The Secretary of Agriculture shall distribute the moneys
11 in the Fair Fund, annually, on or before March 1 in the
12 following manner:
13 (1) For reimbursement to county agricultural societies,
14 independent agricultural societies and other organizations
15 conducting an annual agricultural fair, as follows:
16 (i) a basic payment for operating expenses, the sum
17 of which may not exceed $12,000 for Class A fairs,
18 $10,000 for Class B fairs, $8,000 for Class C fairs,
19 $6,000 for Class D fairs, and $2,000 for Class E fairs.
20 Class A fairs are those which operate on 40 acres or more
21 of land and pay $10,000 or more in premiums to winners of
22 agricultural or agribusiness contests or exhibits; Class
23 B fairs are those operating on 30 acres or more of land
24 and pay $7,500 to $9,999 in premiums to winners of
25 agricultural or agribusiness contests or exhibits; Class
26 C fairs are those operating on 20 acres or more and pay
27 $5,000 to $7,499 in premiums to winners of agricultural
28 or agribusiness contests or exhibits; Class D fairs are
29 those operating on ten or more acres and pay $2,500 to
30 $4,999 in premiums to winners of agricultural or
19810S0962B1495 - 51 -
1 agribusiness contests or exhibits; and Class E fairs are
2 those operating on less than ten acres and pay less than
3 $2,500 in premiums to winners of agricultural or
4 agribusiness contests or exhibits. This basic payment may
5 also be used for the premium awards if expenses of the
6 fair do not total as much as the maximum amount which can
7 be granted in the basic payment plus;
8 (ii) fifty percent of money paid for all other
9 agricultural premiums not included in subparagraph (i)
10 with a maximum payment for premiums not to exceed
11 $15,000.
12 (2) To be eligible for payment from the Pennsylvania
13 Fair Fund, applications must be filed and approved during the
14 calendar year in which the activity is held. An annual
15 agricultural fair shall be deemed to be an event totaling no
16 less than three days of activities for Class D and E fairs,
17 no less than five days of activities for Class A, B and C
18 fairs, with each day of activities for all classes consisting
19 of a program or programs of six hours or more in length and
20 all activities so designed as to contribute to the
21 development of several or many phases of agriculture or
22 agribusiness and with each fair required to meet the
23 following requirements:
24 (i) exhibit agricultural or agribusiness
25 products, materials and equipment;
26 (ii) conduct agricultural or agribusiness
27 educational activities and demonstrations;
28 (iii) award premiums to agricultural or
29 agribusiness contest and exhibit winners with a top
30 award for first place and proportionate awards to
19810S0962B1495 - 52 -
1 runners-up adjudged by position following the winner
2 but not to exceed ten in number;
3 (iv) provides proper first aid through medical
4 personnel and adequate sanitary facilities which meet
5 State and local requirements;
6 (v) provide supervision of all activities by an
7 officially appointed committee or a board of
8 directors of not less than five persons;
9 (vi) file all reports, forms and applications
10 for Pennsylvania Fair Funds and maintain records as
11 required by the rules and regulations drafted and
12 approved by the Secretary of Agriculture; and
13 (vii) provides that at least 25% of the events
14 for which agricultural or agribusiness premiums are
15 paid must be "open class" events.
16 No society hereafter incorporated or recognized by a county
17 government or the Commonwealth shall be entitled to the
18 benefits of this act until such society has conducted three
19 consecutive annual exhibitions of the character designated in
20 this paragraph and such society upon its inception shall file
21 with the Secretary of Agriculture and declaration of its
22 intention to apply for premium money for its fourth year.
23 Such society must also file its report during its first three
24 years the same as any other eligible society. This paragraph
25 will not apply to an eligible society heretofore or hereafter
26 incorporated, which shall resume the holding of annual
27 exhibitions of the character designated in this paragraph,
28 which exhibitions have been for a period of not more than two
29 years temporarily discontinued.
30 (3) For reimbursement for each county agricultural
19810S0962B1495 - 53 -
1 society and each independent agricultural society conducting
2 harness horse racing during its annual fair other than races
3 for two and three-year old colts and fillies which races are
4 provided for in paragraph (4), an amount of money equal to
5 that used during their annual fair as purse money for harness
6 horse racing, track and stable maintenance, starting gate
7 rental and the cost of all harness horse racing officials
8 required during their annual fair, but not more than $10,000,
9 a minimum of one-third of which must be used for purse money.
10 (4) For reimbursement for each county agricultural
11 society and independent agricultural society conducting races
12 for two and three-year old colts and fillies, at their annual
13 fair on which a maximum of $5,600 was paid annually. Entrance
14 fees collected for each such race shall not be included when
15 computing the amount distributed by the Secretary of
16 Agriculture under this subsection.
17 (5) For reimbursement to Statewide agricultural
18 organizations who contribute to the development of many
19 phases of agriculture or agribusiness as provided under the
20 rules and regulations drafted and approved by the Secretary
21 of Agriculture:
22 (i) a maximum payment of $2,000 for operating
23 expenses including the payment of agricultural premiums
24 plus;
25 (ii) fifty percent of money paid for all other
26 agricultural premiums not included in subparagraph (i).
27 In no instance shall this total amount exceed $12,000. To be
28 eligible for payment from the Pennsylvania Fair Fund,
29 applications must be filed and approved during the calendar
30 year in which the activity is held.
19810S0962B1495 - 54 -
1 (6) To countywide or Statewide 4-H and FFA or combined
2 FFA and FHA units of boys and girls under 21 years of age a
3 basic payment of $2,000 annually, to be used for the general
4 operations of such units in agriculture or agribusiness
5 programs. An organization whose members consist of entirely
6 of minors must apply through and be represented by an adult
7 advisory group and both groups must be recognized by their
8 respective county governments or by the Commonwealth of
9 Pennsylvania. Each countywide or Statewide 4-H and FFA or
10 combined FFA and FHA units shall be required to report on its
11 activities and justify these activities as events which
12 contribute to the advancement of agriculture or agribusiness.
13 Reports shall include a record of expenses incurred in the
14 conduct of these qualifying activities. The amount awarded to
15 each youth group cannot exceed the amount of expenses
16 reported for the conduct of activities. In addition to basic
17 payments each participating 4-H, FFA or combined FFA and FHA
18 units whose membership exceeds 1,000 members will be eligible
19 for additional payments at the rate if $2 per member for each
20 member in excess of 1,000.
21 (c) If there is in the Pennsylvania Fair Fund an excess over
22 the amount required to make payments specified in subsection (b)
23 the excess shall be distributed as follows:
24 (1) No more than $75,000 to be used by the Department of
25 Agriculture for marketing and consumer service programs.
26 (2) No more than $400,000 for agricultural research
27 programs.
28 (d) The agricultural research projects shall be determined
29 by a committee composed of the following membership; the
30 Secretary of Agriculture, the chairmen and minority chairmen of
19810S0962B1495 - 55 -
1 the House and Senate Agriculture and Rural Affairs Committees,
2 the chairman of the State Harness Racing Commission or his
3 designee, the chairman of the State Horse Racing Commission or
4 his designee and three persons designated by the Secretary of
5 Agriculture from his staff.
6 (e) The Secretary of Agriculture shall be responsible for
7 reviewing and evaluating the progress of the research projects.
8 To assist in the valuation and review process, the secretary
9 shall form an Agricultural Research Project Review Committee
10 composed of representatives of various segments of the
11 agricultural and agribusiness community. The Agricultural
12 Research Project Review Committee shall meet at least annually
13 to formulate recommendations for the secretary and the research
14 project committee.
15 (f) In the event the amount of money in the Pennsylvania
16 Fair Fund is less than is required to make payments specified in
17 subsection (b), the amount granted to each recipient shall be
18 reduced proportionately.
19 (g) In the event there is in the Pennsylvania Fair Fund an
20 excess over the amounts required to make payment specified in
21 subsections (b) and (c), the excess shall be disbursed by a
22 committee consisting of the Secretary of Agriculture, the
23 chairman of the House Agriculture and Rural Affairs Committee,
24 the chairman of the Senate Agriculture and Rural Affairs
25 Committee and four additional members to be appointed by the
26 Secretary of Agriculture, two from fairs and two from the
27 Department of Agriculture as follows: the excess shall be
28 disbursed on a matching fund basis to fairs in amounts not to
29 exceed $25,000 to any one fair for the purpose of improving
30 buildings and grounds, of adding more land or constructing new
19810S0962B1495 - 56 -
1 facilities for the proper conduct of the fairs except that a
2 fair shall not be eligible for funds more than once every three
3 years; disbursements to be made by the Department of Agriculture
4 according to rules and regulations drafted by the Secretary of
5 Agriculture and approved by the committee. Any balance remaining
6 in the funds shall be returned to the General Fund.
7 (h) The Secretary of Agriculture shall provide forms for
8 application for the distribution of the funds to county and
9 independent agricultural societies and to youth groups with the
10 exception of disbursements made under subsection (f). The
11 Secretary of Agriculture shall prescribe such rules and
12 regulations as he may deem necessary to carry out the provisions
13 of this section and may make such investigations necessary to
14 determine the validity of any claims and applications for
15 distribution of moneys.
16 Section 226. Hearing of refusal or revocation of license.
17 If the commissions refuse to grant any license applied for
18 under this act, or shall revoke or suspend any license granted,
19 the applicant or licensee may demand, within ten days after
20 notice of the decision of the appropriate commission, a hearing
21 before the appropriate commission. The commission shall give
22 prompt notice of the time and place for the hearing at which
23 time the commission will hear the applicant or licensee. Pending
24 the hearing and final determination, the action of the
25 commissions in refusing to grant or in revoking or suspending a
26 license shall remain in full force. The commissions may continue
27 any hearing from time to time for the convenience of any of the
28 parties. Any of the parties affected by a hearing may be
29 represented by counsel. In the conduct of the hearing, the
30 commissions shall not be bound by technical rules of evidence,
19810S0962B1495 - 57 -
1 but all evidence offered before the commissions shall be reduced
2 to writing. All evidence, exhibits and findings of the
3 commissions shall be permanently preserved and shall constitute
4 the record of the commission. In connection with the hearing,
5 the commissions shall have the power to administer oaths and
6 examine witnesses, and may issue subpoenas to compel attendance
7 of witnesses and the production of all material and relevant
8 reports, books, papers, documents, correspondence and other
9 evidence. The commissions may by order refer to one or more of
10 its officers the duty of taking testimony in the matter and to
11 report to the commission. Within 30 days after the conclusion of
12 the hearing, the appropriate commission shall make a final order
13 in writing, setting forth the reasons for the action taken by it
14 and a copy thereof shall be served on the applicant or licensee.
15 Section 227. Approval of the racing facility.
16 The commissions shall not grant to a corporation formed under
17 this act a license to conduct a horse race meeting at which
18 pari-mutuel betting may be conducted, until the corporation has
19 submitted to the appropriate commission a statement of the
20 location of its proposed grounds and race track, together with a
21 plan of the track and plans of all buildings, seating stands and
22 other structures in a form as the appropriate commission may
23 prescribe. All plans shall be approved by the appropriate
24 commission before the issuance of any license to conduct a pari-
25 mutuel horse race meeting.
26 Section 228. Prohibition of wagering by certain officials,
27 employees and minors.
28 No commissioner, executive secretary, deputy, officer,
29 representative, employee or counsel of the commission shall
30 wager upon the outcome of any horse race conducted at a track at
19810S0962B1495 - 58 -
1 which pari-mutuel wagering is conducted by any licensed
2 corporation of the commissions. No licensed corporation shall
3 permit any person who is actually and apparently under 18 years
4 of age to wager at a race meeting conducted by it. No licensed
5 corporation shall permit any person who is under 18 years of age
6 to attend a horse race meeting conducted by it unless the person
7 is accompanied by a parent or guardian. This section shall not
8 be construed to prohibit persons under 18 years of age, who are

Historical Act text part 2

9 legally employed, from being upon the race track premises for
10 the sole purpose of engaging in the performance of their duties
11 as employees. The commissions shall, by rule, provide for
12 enforcement of this section.
13 Section 229. Horse racing veterinarians and State steward.
14 (a) The State Horse Racing Commission shall appoint and
15 employ licensed veterinarians and a steward to serve as the
16 horse racing veterinarians and State steward for horse racing,
17 respectively, at each meeting conducted by a corporation
18 licensed by the State Horse Racing Commission. The State Horse
19 Racing Commission shall have the authority to employ other
20 individuals as shall be necessary to carry out the
21 responsibilities of this section.
22 (b) The costs and compensation of the horse racing
23 veterinarians, State steward and other individuals employed
24 shall be fixed and paid by the State Horse Racing Commission.
25 Section 230. State harness racing veterinarians.
26 (a) The State Harness Racing Commission shall appoint and
27 employ licensed veterinarians to serve as the harness racing
28 veterinarians for harness racing at each meeting conducted by a
29 corporation licensed by the State Harness Racing Commission. The
30 State Harness Racing Commission shall have the authority to
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1 employ other individuals as shall be necessary to carry out the
2 responsibilities under this section.
3 (b) The costs and compensation of the harness racing
4 veterinarians and other individuals employed to carry out the
5 provisions of this act shall be fixed and paid by the State
6 Harness Racing Commission.
7 Section 231. Free passes, cards or badges.
8 (a) A licensed corporation shall not issue free passes,
9 cards or badges without admission tax, except to persons
10 hereafter described: officers, employees and shareholders of the
11 corporation conducting the race meeting; members, officers and
12 employees of the commissions; members of horse racing
13 associations of other states and foreign countries; public
14 officers engaged in the performance of their duties; persons
15 employed and accredited by the press to attend such meeting;
16 owners, stable managers, trainers, jockeys, concessionaries and
17 other persons whose actual duties require their presence at the
18 race tracks.
19 (b) The commissions may allow a licensed corporation to
20 issue free passes, cards or badges for special promotional
21 programs and seasonal discount ticket programs, so long as the
22 corporation has obtained approval from the appropriate
23 commission. The admissions taxes under section 208 shall be
24 imposed on the price of all seasonal discount tickets sold by a
25 licensed corporation.
26 (c) The issuance of tax-free passes, cards or badges shall
27 be under the rules and regulations of the commissions. A list of
28 all persons, except persons admitted under an approved special
29 promotional program or seasonal discount ticket program, to whom
30 free passes, cards or badges are issued shall be filed with the
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1 appropriate commission.
2 Section 232. Political subdivision agricultural fairs and horse
3 race meetings not licensed to conduct pari-mutuel
4 wagering.
5 Pari-mutuel wagering on horse races at any county or other
6 political subdivision, agricultural or other fair shall not be
7 authorized. No lottery, pool selling, bookmaking or any other
8 kind of gambling upon the results of races, heats or contests of
9 speed of horses shall be allowed at any fair or at any horse
10 race meeting conducted in the State, except those licensed to
11 operate pari-mutuel wagering under the provisions of this act.
12 CHAPTER 3
13 MEDICATION RULES AND ENFORCEMENT PROVISIONS
14 Section 301. Mandatory requirements for medication rules.
15 (a) The commissions shall have in effect at all times when a
16 licensed corporation conducts a horse racing meeting with pari-
17 mutuel wagering rules or regulations to control the use and
18 administration of any medication and the use and administration
19 of any device that affects the performance of a race horse. The
20 commissions may establish permitted tolerance levels and
21 therapeutic dose allowances for all medication to be used or
22 administered to a race horse.
23 (b) The commissions shall establish in their rules or
24 regulations penalty provisions for the violation of these rules
25 or regulations.
26 Section 302. Establishment of the Pennsylvania Race Horse
27 Testing Laboratory.
28 (a) There is hereby established the Pennsylvania Race Horse
29 Testing Laboratory. The laboratory shall be administered by a
30 management committee composed of the two chairpersons of the
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1 commissions and the Secretary of Agriculture. The laboratory is
2 placed in and made a part of the Department of Agriculture. All
3 costs of the laboratory shall be paid by the commissions. The
4 management committee shall appoint and direct all personnel,
5 establish a facility, acquire all necessary equipment and
6 supplies and adopt all necessary procedures.
7 (b) The purposes of the Pennsylvania Race Horse Testing
8 Laboratory are to analyze samples for the presence in race
9 horses of any medication, to develop techniques, equipment and
10 procedures, to collect and test for the presence of medication
11 in race horses, to ascertain permitted tolerance levels or
12 therapeutic dose allowances for medication, to offer
13 consultation and advice to the public on all issues regarding
14 the medication of race horses and to conduct research in
15 medication issues involving race horses.
16 Section 303. Equipment, supplies and facilities.
17 The costs of all equipment, supplies and facilities, except
18 holding barns or stables, to be located at race horse meeting
19 facilities, grounds or enclosures or at other locations
20 designated by the management committee shall be paid by the
21 commissions.
22 Section 304. Costs of the enforcement of the medication rules
23 or regulations.
24 All costs for the collection and testing samples for any
25 manner of medication shall be paid by the commissions.
26 CHAPTER 4
27 MISCELLANEOUS PROVISIONS
28 Section 401. Repealer.
29 (a) The following sections of the act of December 22, 1959
30 (P.L.1978, No.728), entitled, as amended, "An act providing for
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1 and regulating harness racing with pari-mutuel wagering on the
2 results thereof; creating the State Harness Racing Commission as
3 a departmental administrative commission within the Department
4 of Agriculture and defining its powers and duties; providing for
5 the establishment and operation of harness racing plants subject
6 to local option; imposing taxes on revenues of such plants;
7 disposing of all moneys received by the commission and all
8 moneys collected from the taxes; authorizing penalties; and
9 making appropriations," are to be treated as follows:
10 (1) Section 15(1) (relating to the disposition of pari-
11 mutuel pools as regards to the tax imposed and allocated to
12 the Pennsylvania Sire Stakes Fund) to be repealed
13 retroactively beginning on September 1, 1981.
14 (2) Section 15(2) (relating to the disposition of the
15 breakage retained and allocated to the permit holders and
16 Pennsylvania Sire Stakes Fund) to be repealed retroactively
17 beginning on September 1, 1981.
18 (3) Section 16 (relating to disposition and
19 appropriation of funds accruing under the provisions of this
20 act) and those provisions of section 15 (relating to
21 disposition of pari-mutuel pools) not repealed under
22 paragraphs (1) and (2) of this subsection to be repealed on
23 January 1, 1982.
24 (4) Section 25 (relating to appropriation of funds of
25 Pennsylvania Sire Stakes Fund) to be repealed retroactively
26 beginning on September 1, 1981.
27 (5) The remaining sections of the above mentioned act,
28 as amended, are repealed immediately.
29 (b) The following sections of the act of December 11, 1967
30 (P.L.707, No.331), entitled "An act providing for and regulating
19810S0962B1495 - 63 -
1 thoroughbred horse racing with pari-mutuel wagering on the
2 results thereof, creating the State Horse Racing Commission as
3 an independent administrative commission and defining its powers
4 and duties; providing for the establishment and operation of
5 thoroughbred horse racing plants; imposing taxes on revenues of
6 such plants; disposing of all moneys received by the commission
7 and all moneys collected from the taxes; authorizing penalties;
8 and making appropriations," are to be treated as follows:
9 (1) Section 17 (relating to disposition of pari-mutuel
10 pools as regards to the tax imposed and allocated to the
11 Pennsylvania Breeding Fund) to be repealed retroactively
12 beginning on September 1, 1981.
13 (2) Section 17 (relating to disposition of pari-mutuel
14 pools as regards to the breakage retained and allocated to
15 the permit holders and the Commonwealth of Pennsylvania,
16 Department of Revenue) to be repealed retroactively beginning
17 on September 1, 1981.
18 (3) Section 17.1 (relating to the Pennsylvania Breeding
19 Fund) to be repealed retroactively beginning on September 1,
20 1981.
21 (4) Section 18 (relating to disposition and
22 appropriation of funds accruing under the provisions of the
23 act) and those provisions of section 17 (relating to
24 disposition of pari-mutuel pools) not repealed under
25 paragraphs (1) and (2) of this subsection to be repealed on
26 January 1, 1982.
27 (5) The remaining sections of the act are repealed
28 immediately.
29 Section 402. Severability.
30 If any provisions of this act or the application thereof is
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1 held invalid or unconstitutional, such invalidity or
2 unconstitutionality shall not effect other provisions or
3 applications of this act which can be given effect without the
4 invalid or unconstitutional provisions or applications and to
5 this end the provisions of this act are declared to be
6 severable.
7 Section 403. Effective dates.
8 (a) The following sections of this act are to take effect
9 retroactively beginning on September 1, 1981:
10 (1) Section 208(a) (relating to the admissions taxes at
11 thoroughbred horse race meetings).
12 (2) Section 222(a)(1) and (2) (relating to the
13 Pennsylvania Breeding Fund and Pennsylvania Sire Stakes Fund,
14 respectively).
15 (3) Section 222(c)(1), (2) and (3) and 222(d)(1) and (2)
16 (relating to the distribution of the breakage retained at
17 thoroughbred horse race. meetings and harness horse race
18 meetings, respectively).
19 (4) Section 223 (relating to the Pennsylvania Breeding
20 Fund).
21 (5) Section 224 (relating to the Pennsylvania Sire
22 Stakes Fund).
23 (b) Section 222(a)(3), (b)(1), (2), (3), (4), (5), (6), (7)
24 and (e) are to take effect on January 1, 1982.
25 (c) All remaining sections of this act are to take effect
26 immediately.
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