PROPOSED RULEMAKING
STATE HORSE RACING COMMISSION
[58 PA. CODE CHS. 163 AND 165]
Rules of Racing
[28 Pa.B. 4797] The State Horse Racing Commission (Commission) acting under the authority conferred by section 202(a) of the Race Horse Industry Reform Act (4 P. S. § 325.202(a)) (act), hereby proposes to amend Chapters 163 and 165 (relating to rules of racing; and administrative rules) of the Commission's regulations.
Chapter 163 of the Commission's regulations governs all of the facets of racing including matters such as, entries, licensing of owners, trainer and jockeys, racing violations, medication/drug violations, the power of the Board of Stewards and the Breeders Fund Program. Chapter 163 also includes the Commission's regulations regarding racing entries. Specifically, the Commission proposes to amend §§ 163.95 and 163.531 (relating to coupled entries; and definitions). The proposed amendments will help clarify and update the present rules of racing and bring them into conformance with surrounding racing jurisdictions.
Summary of Proposed Major Amendments
Entries and Subscriptions
Section 163.95 (Coupled entries)
At the request of the Pennsylvania Thoroughbred Horsemen's Association (THA), the Commission proposes to amend the so-called ''coupled entry'' rule. The proposed amendment will eliminate an outdated rule of racing and make it more consistent with § 163.119 (relating to double entry in the same ownership) of the Commission's regulations. Additionally, the proposed amendment will bring the Commission's regulation into parity with Delaware and Florida racing jurisdictions.
Specifically, the coupled entry rule is activated when an owner or trainer attempts to enter more than one horse in the same race. An ''entry'' as defined in the Commission's regulations is a horse, which is made eligible to run in a particular race. That entry is thereafter known as a ''starter.'' As presently promulgated, when an owner or trainer enters two or more horses in the same race, the two horses are combined as one entry for purposes of betting. Thus, a wager placed on one horse is considered a wager on both horses (the entry). Historically, two or more horses owned or trained by the same persons were coupled to avoid any potential collusion between the owner or trainer and the jockeys of the two horses, which could affect the outcome of the race. Today, in this heavily regulated industry the potential for collusion has been greatly diminished, if not completely eradicated.
The practical effect of the proposed amendment is to ''uncouple'' the entry in the race but only as to trainers. Thus, when two or more horses entered in a race are trained by the same trainer, the two horses may race as an independent or uncoupled entry, which has been shown to increase betting interest with the public. The coupled-entry requirement however, will remain in effect as to horses owned wholly or in part by the same person.
Pennsylvania Breeder's Fund Program
Section 163.531 Definitions.
At the request of the Pennsylvania Horse Breeders Association (PHBA), the Commission proposes to amend the regulations governing the Pennsylvania Breeders' Fund Program (Fund), which was established in 1974. Historically, the Fund was designed to stimulate and sustain the Commonwealth's thoroughbred breeding industry, whose product would in turn, support live racing programs at the licensed thoroughbred racetracks by providing, in essence, an incentive to breed horses in this Commonwealth. The Fund, by providing monetary awards to breeders, stallion owners and owners of registered Pennsylvania-bred (Pa-Bred) horses, offers the thoroughbred industry economic advantages to help offset the high-risk enterprise of breeding racehorses. The Fund is financed by 7/10 of 1% of the total thoroughbred pari-mutuel handle. It provides for individual award payments, purse bonus supplements, PA-Bred stakes races and expenses incurred by the PHBA in its role as program administrator. Additionally, an amount equal to 1/3 of 1% of each thoroughbred racetrack's daily pari-mutuel handle is utilized in conjunction with Fund moneys by that racetrack to provide for owner bonuses earned by PA-Bred horses racing there.
As presently promulgated, the definition of ''Pennsylvania-bred horse'' requires only that the foaling occur in this Commonwealth for the horse to be eligible for program registration and all its entitlements. The definition was originally designed to simplify matters for Commonwealth breeders unfamiliar with the incentive programs and which would attract breeders from surrounding states to come to this Commonwealth and breed horses. However, due to increased sums of PA-Bred moneys as a result of off-track wagering facilities, full card simulcasting and the downsides being experienced in breeding programs in surrounding states, out-of-State breeders are now quick to take advantage of the overly-broad definition of a PA-Bred. Out-of-State breeders are entering this Commonwealth simply to foal their horse (and gaining eligibility into the program) and immediately leaving this Commonwealth without necessarily contributing to the commerce of this Commonwealth's thoroughbred industry. The proposed rulemaking will amend the definition by requiring that during the year of foaling, the foal or its dam spend a minimum of 90 days at a facility in this Commonwealth. The PHBA and the Commission believe the proposed amendment will modify the current trend and ensure that Fund program participants contribute more significantly to this Commonwealth's commerce than the current definition requires.
Finally, the Commission will also propose to amend or entirely delete several other sections, including § 163.537 (relating to records of expenses) within the Breeders Fund Program to clarify and update, when appropriate, the language of the regulations relating to such matters as the registration, eligibility, appeals and awards of Pa-Bred horses. Specifically, § 163.537, which was promulgated in the mid-1970s prior to the enactment of Race Horse Industry Reform Act in 1981 (4 P. S. §§ 325.101--325.402), presently requires the PHBA to submit quarterly estimates to the Commission. This is inconsistent with section 325.223(g) of the act (4 P. S. § 325.223(g)), which only requires annual estimates. The Commission and the Pennsylvania Breeding Fund Advisory Board propose to delete this section because of this inconsistency and because they believe section 325.223(g) of the act adequately addresses the expense-records requirement.
Section 165.118(j) (Trifecta)
For purposes of uniformity and consistency, this section is proposed to be amended to delete the existing restriction regarding coupled entries in Trifecta races. The Commission does not believe there is any further legitimate reason to continue this restriction, especially in light of the preceding proposed amendment.
Fiscal Impact
Commonwealth The Commission has determined that the amendments will have no adverse fiscal impact on the Commonwealth.
Political Subdivisions The proposed amendments will not have any direct fiscal impact on political subdivisions.
Private Sector The proposed amendments will not have any negative fiscal impact on the private sector within this Commonwealth. There may be limited fiscal impact upon out-of-State breeders who enter this Commonwealth to become eligible for the Breeders' Fund Program. The impact should be offset as a result of the commerce generated with the new 90-day requirement for the dam and foal, which will have to be met to qualify for the Pa-Bred registration.
General Public The proposed amendments will not have any fiscal impact on the general public. The proposed amendments will, however, bring the Commission's regulations relating to coupled entries and the Breeders' Fund Program into conformity with the other racing jurisdictions.
Paperwork Requirements
The proposed amendments will not generate any new substantial paperwork for the public or the Commonwealth.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 14, 1998, the Commission submitted a copy of the proposed amendments to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House and Senate State Government Committees. In addition to submitting the proposed amendments, the Commission has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Commission in compliance with Executive Order 1996-1.
If IRRC has objections to any portion of the proposed amendments, it must notify the Commission within 10 days of the close of the Committees' review period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the regulation, by the Commission, the General Assembly and the Governor of objections raised.
Contact Person
Individuals interested in commenting on the proposed amendments or who require further information may contact Benjamin H. Nolt, Jr., Executive Secretary, State Horse Racing Commission, Room 304 Agriculture Building, 2301 N. Cameron Street, Harrisburg, PA 17110-9408, (717) 787-5196, within 30 days of publication of this notice in the Pennsylvania Bulletin.
BENJAMIN H. NOLT, Jr.,
Executive SecretaryFiscal Note: 34-63. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART IV. HORSE RACING COMMISSION
CHAPTER 163. RULES OF RACING
ENTRIES AND SUBSCRIPTIONS § 163.95. Coupled entries.
(a) The term ''entry'' means a horse made eligible to run in a race. When starters in a race include two or more horses owned [or trained] by the same person, [trained in the same stable or trained by the same management,] they shall be coupled as an entry, with no exceptions. A wager on one horse in the entry shall be a wager on all horses in the entry. If a race is split in two or more divisions, horses in an entry shall be seeded in separate divisions, but the divisions in which they compete and their post positions shall be drawn by lot.
(b) Horses owned wholly or in part by the same person or the spouse of the person or trained by the same trainer shall be coupled and run as an entry. A trainer may not have any ownership interest in any other horse in the same race unless the horses are coupled as a single wagering interest.
* * * * * (d) Starters in a race which include two horses of different ownership trained by the same person, trained in the same stable or trained by the same management may not be coupled as an entry and shall constitute separate wagering interests. In no case may more than two horses having common trainer ties as defined in this section start in a race.
PENNSYLVANIA BREEDERS' FUND PROGRAM § 163.531. Definitions.
The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:
Breeder--A breeder is the owner of the dam at the time of foaling and when held under a lease or in partnership, only the lease or partnership will be recognized for purposes of which it is filed with the Jockey Club.
Pennsylvania-bred horse-- A Pennsylvania-bred horse is a thoroughbred horse foaled in [Pennsylvania] this Commonwealth, which during the year of foaling, the foal or its dam spent a minimum of 90 days at a facility in this Commonwealth and is subsequently registered with the Pennsylvania Horse Breeders Association and the Jockey Club.
* * * * * § 163.532. Eligibility for Pennsylvania-bred races.
To be eligible for preferences in races in which Pennsylvania-breds are preferred and to be eligible for entry in races which are restricted by condition to registered Pennsylvania-breds, a horse shall be registered as a Pennsylvania-bred with the Pennsylvania Horse Breeders Association at the time of entry. [To be eligible for the registration, the horse shall have been foaled in this Commonwealth.]
§ 163.533. [Eligibility of breeders for awards] (Reserved).
[In order for a Pennsylvania-bred horse to be eligible to earn an award for its breeder, under section 17.1(b)(3) of the act of December 11, 1967 (P. L. 707, No. 301) (15 P. S. § 2667.1) (Repealed), in a race conducted by a pari-mutuel permit holder in this Commonwealth, the horse shall be registered as a Pennsylvania-bred with the Pennsylvania Horse Breeders Association prior to entry for the race.]
§ 163.534. [Eligibility of owners of Pennsylvania sires for awards] (Reserved).
[In order for a sire of this Commonwealth to be eligible to earn an award for its owner, under section 17.1(b)(4) of the act of December 11, 1967 (P. L. 707, No. 331) (15 P. S. § 2667.1) (Repealed), the sire shall have been registered as a sire of this Commonwealth with the Pennsylvania Horse Breeders Association during each breeding season when the sire covered the dams that, as a result of that cover, produced Pennsylvania-breds. A sire of this Commonwealth not registered with the Pennsylvania Horse Breeders Association prior to 1975 may be registered with the Pennsylvania Horse Breeders Association, for years prior to 1975 if registered by December 31, 1975. To be eligible for a sire award, it is not necessary that the foal entitling the sire owner to the award be itself registered but only that it have been foaled in this Commonwealth by a sire registered as set forth in this section.]
§ 163.537. [Records of expenses] (Reserved).
[The Pennsylvania Breeders Association will maintain a complete record of reasonable and necessary expenses and will submit quarterly estimates to the Commission, on the basis of which the Commission may disburse advances. The quarterly estimated statements of expenses and advances shall be reconciled annually with a certified statement of expenses to be prepared by an auditor approved in advance by the Commission. The Commission will thereafter review them and after approval of allowable items shall then reimburse the Pennsylvania Breeders Association for expenses the Commission finds reasonable and appropriate to this program. If advances on account of expenses exceeds actual expenses as approved at the end of a given year, the excess shall be deemed disbursed on account of the ensuing year's expenses.]
CHAPTER 165. ADMINISTRATIVE RULES
Subchapter E. PARI-MUTUEL WAGERING § 165.118. Trifecta.
* * * * * (j) Coupled entries and fields are [prohibited] allowed in Trifecta races, at the discretion of the Commission or its designee.
* * * * *
[Pa.B. Doc. No. 98-1554. Filed for public inspection September 25, 1998, 9:00 a.m.]
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