[49 Pa.B. 6221]
[Saturday, October 19, 2019]

[Continued from previous Web Page]

Subpart B. LICENSING

Chap.

181.	LICENSED RACING ENTITIES—TEMPORARY REGULATIONS
183.	SECONDARY PARI-MUTUEL ORGANIZATIONS—TEMPORARY REGULATIONS
185.	OCCUPATIONAL LICENSES—TEMPORARY REGULATIONS
187.	RACING VENDORS AND TOTALISATORS—TEMPORARY REGULATIONS
189.	NONPRIMARY LOCATIONS—TEMPORARY REGULATIONS

CHAPTER 181. LICENSED RACING ENTITIES—TEMPORARY REGULATIONS

Sec.

181.1.	General provisions.
181.2.	Number of licensed racing entities.
181.3.	Race meeting license required.
181.4.	Race meeting application and procedures.
181.5.	Conditions for approval.
181.6.	Commission action on horse race meeting licenses.
181.7.	Denial, suspension or revocation.
181.8.	Racing days.
181.9.	Electronic wagering by licensed racing entity.
181.10.	Gratuities prohibited.
181.11.	Possession of firearms.
181.12.	Racetrack financial responsibility.
181.13.	Books and records of pari-mutuel wagering.
181.14.	Bond or letter of credit requirements.
181.15.	Filing of certain agreements with Commission.
181.16.	Horse entries prohibited.
181.17.	Fines and penalties.
181.18.	Searches within track premises.
181.19.	Commission office space.

ANNUAL OR PRE-MEET SUBMISSIONS

181.21.

Submission of information to the Commission.

RACETRACK FACILITIES—STANDARDBRED

181.31.	General provisions.
181.32.	Judges' stand.
181.33.	Audio and visual equipment.
181.34.	Photo finish.
181.35.	Videotaping system.
181.36.	Starting gates.
181.37.	Distance markers.
181.38.	Saddle pad colors.
181.39.	Lighting.
181.40.	Equine ambulance.
181.41.	Barns.

RACETRACK FACILITIES—THOROUGHBRED

181.51.	Thoroughbred facilities and equipment.
181.52.	Concussion protocol program.
181.53.	Stewards' stands.
181.54.	Audio and visual equipment.
181.55.	Photo finish.
181.56.	Videotaping system.
181.57.	Racetrack surface.
181.58.	Starting gates.
181.59.	Distance markers.
181.60.	Lighting.
181.61.	Human and equine ambulances.
181.62.	Barns.

OPERATIONS

181.71.	Test barn.
181.72.	Enforcement.
181.73.	Licensed racing entity security personnel.
181.74.	Admission to premises and security.
181.75.	Admission and removal of horses.
181.76.	Fire prevention.
181.77.	Admission of minors.
181.78.	Health certificate.

§ 181.1. General provisions.

 (a) Purpose. The purpose of this part is to set forth the requirements for individuals seeking to obtain a license to conduct horse race meetings, describe the duties, responsibilities, facilities, equipment and operations of the license racing entities, consistent with the provisions of section 9318 of the act (relating to licenses for horse race meetings).

 (b) Knowledge of rules. All licensed racing entities, their directors, officers, officials and employees are responsible for the conduct of their horse race meeting, including but not limited to all live racing, simulcasted racing and pari-mutuel wagering activities within their facilities and racetrack enclosure.

 (c) General duty. All licensed racing entities, their directors, officers, officials and employees shall be familiar with, abide by and enforce the provisions of the act and the rules, regulations and orders of the Commission or the Board of Judges and Board of Stewards.

 (d) Exemption. A licensed racing entity may request an exemption from a requirement in this chapter to utilize new technology or innovative construction or design of the racetrack facilities. The Commission may grant an exemption if the Commission determines that:

 (1) the licensed racing entity's proposal substantially satisfies the purpose of the requirement; and

 (2) the exemption is in the best interests of the racing industry, the citizens of this Commonwealth and health, safety and welfare of horses.

§ 181.2. Number of licensed racing entities.

 (a) Standardbred horse racing. No more than five persons shall be licensed to conduct a horse race meeting. No person licensed under this chapter to conduct standardbred horse racing with pari-mutuel wagering shall be licensed to conduct thoroughbred horse racing with pari-mutuel wagering.

 (b) Thoroughbred horse racing. No more than six persons shall be licensed by the Commission to conduct a horse race meeting. No person licensed under this chapter to conduct thoroughbred horse racing with pari-mutuel wagering shall be licensed to conduct standardbred horse racing with pari-mutuel wagering.

§ 181.3. Race meeting license required.

 In accordance with the provisions of the act, no person shall conduct or operate a horse race meet with pari-mutuel wagering within this Commonwealth without first obtaining the appropriate license from the Commission. The purchase of a licensed racing entity, the change of ownership in the licensed racing entity or a transfer of a horse race meeting license shall be reviewed and approved by the Commission in accordance with the provisions of the Racing Act and these regulations.

§ 181.4. Race meeting application and procedures.

 (a) Applications to conduct horse race meetings shall be in the form prescribed by the Commission and must contain information as required by the provisions of the Racing Act or as required by the Commission. The Commission may require the following forms or documentation:

 (1) Entity Application and Organizational Chart;

 (2) Multi-Jurisdictional History Disclosure Forms for applicable Directors, Officers and Principals;

 (3) Breed specific occupational license applications;

 (4) Recent fingerprints; or

 (5) Any other applicable information upon which to make a suitability determination.

 (b) A license to conduct horse race meetings shall be issued for a period of 3 years.

 (c) A licensed racing entity shall have the privilege to conduct a horse race meeting at which pari-mutuel wagering is permitted. A license to conduct a horse race meeting shall not be a property right and may not be used as collateral or be encumbered.

 (d) The Commission may revoke or suspend the license of a licensed racing entity if the Commission finds that the licensed racing entity, or its directors, owners, officers, managers or agents, have not complied with the act and the regulations promulgated thereunder.

 (e) A licensed racing entity may not sell, change ownership or transfer a license without the specific prior approval of the Commission as set forth in section 9357 of the act (relating to transfers of licenses).

§ 181.5. Conditions for approval.

 Each horse race meeting license, if granted, shall be issued and remain in effect so long as the licensed racing entity, its subsidiaries, affiliates, agents or vendors comply with each condition, rule, regulation or order of the Commission and the provisions of the act, including the following conditions:

 (1) A horse race meeting at which pari-mutuel wagering and racing related activities is conducted shall be regulated by the Commission.

 (2) The conduct of pari-mutuel wagering and racing related activities shall also be regulated by the Department of Revenue.

 (3) The licensed racing entity shall print in its racing programs the procedure for filing a complaint with the Commission.

§ 181.6. Commission action on horse race meeting licenses.

 The following shall apply:

 (1) The Commission shall be prohibited from issuing a license to conduct a horse race meeting at which pari-mutuel wagering is permitted to an individual or applicant or an owner, officer, director or manager of the applicant who has been convicted of:

 (i) A felony in any jurisdiction.

 (ii) A misdemeanor gambling offense in any jurisdiction, unless 15 years has elapsed from the date of conviction.

 (iii) Fraud or misrepresentation in any jurisdiction related to horse racing or horse breeding, unless 15 years has elapsed from the date of conviction.

 (iv) An offense under 18 Pa.C.S. Subchapter B, §§ 5531—5561 (relating to cruelty to animals) (as amended).

 (v) An offense related to fixing or rigging horse races, including 18 Pa.C.S. § 4109 (relating to rigging publicly exhibited contest) or § 7102 (relating to administering drugs to race horses), or any similar crime in another jurisdiction, unless the conviction has been overturned on appeal under the laws of the jurisdiction of the original finding or a pardon has been issued.

 (2) Following expiration of any period applicable to an applicant under paragraph (1)(ii) or (iii), in determining whether to issue a horse racing license to an applicant, the Commission shall consider the following factors:

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

 (ii) The nature and seriousness of the offense or conduct.

 (iii) The circumstances under which the offense or conduct occurred.

 (iv) The age of the applicant when the offense or conduct occurred.

 (v) Whether the offense or conduct was an isolated or a repeated incident.

 (vi) Any evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendations of persons who have substantial contact with the applicant.

 (3) If, in the judgment of the Commission, the applicant has demonstrated by clear and convincing evidence that the participation of the applicant in horse racing or related activities is not:

 (i) Inconsistent with the public interest or best interests of horse racing;

 (ii) Interfering with the effective regulation of horse racing; or

 (iii) Creating or enhancing the danger of unsuitable, unfair or illegal practices, methods or activities in the conduct of horse racing.

§ 181.7. Denial, suspension or revocation.

 (a) The Commission may deny an application for a license or revoke, suspend or refuse to renew the license of any applicant or licensed racing entity, if the Commission finds by a preponderance of the evidence that:

 (1) The applicant or licensed racing entity, or any of its owners, officers, director, managers, employees or agents:

 (i) Has not complied with the conditions, rules, regulations and provisions of this chapter and that it would be in the public interest, convenience or necessity to deny, revoke, suspend or not renew the license.

 (ii) Has been convicted of a violation or attempt to violate a horse racing law, rule or regulation of a horse racing jurisdiction.

 (iii) Has furnished the Commission with false or misleading information relating to the application or license renewal.

 (iv) Has failed to provide all requested documentation relating to an application or license renewal, change of ownership or transfer of license.

 (v) Has been convicted of a crime involving moral turpitude.

 (vi) Has been convicted of a misdemeanor gambling offense in any jurisdiction.

 (vii) Has been convicted in any jurisdiction of fraud or misrepresentation related to horse racing or horse breeding.

 (viii) Has engaged in or continues to engage in unlicensed or unlawful pari-mutuel wagering activities in or outside of this Commonwealth which violates the laws of the Commonwealth or the rules of racing.

 (2) The applicant or licensed racing entity does not have the use of a racetrack or racetrack enclosure in accordance with the provisions of 4 Pa.C.S. Part II (relating to gaming).

 (3) The licensed racing entity has commingled horsemen's organization funds in violation of section 9345(c) (relating to commingling) or has refused to place on deposit a letter of credit under section 9346 of the act (relating to standardbred horse racing purse money).

 (4) The Commission determines that the licensed racing entity has failed to properly maintain its racetrack and racetrack enclosure in good condition under this chapter or to provide adequate capital improvements to the racetrack and racetrack enclosure as required under this chapter and 4 Pa.C.S. § 1404 (relating to distributions from licensee's revenue receipts).

 (5) The applicant or licensed racing entity, its owners, officers, directors, mangers, employees or agents have been convicted in any jurisdiction of an offense related to fixing or rigging horse races, including 18 Pa.C.S. § 4109 (relating to rigging publicly exhibited contest) or § 7102 (relating to administering drugs to race horses), or any similar crime in another jurisdiction, unless the conviction has been overturned on appeal under the laws of the jurisdiction of the original finding or a pardon has been issued.

 (6) The experience, character or general fitness of an officer, director, principle or employee of the applicant is that the participation of that person in Standardbred or Thoroughbred horse racing and the related activities would be inconsistent with the public interest, convenience or necessity or with the best interest of racing generally.

 (b) If a revocation or failure to renew a license under this chapter occurs, the licensee's authorization to conduct previously approved activity shall immediately cease, subject to the licensee's hearing rights as set forth in the Commission's regulations. In the case of a suspension, the licensee's authorization to conduct previously approved activity shall immediately cease until the Commission has notified the licensee that the suspension is no longer in effect. After request for a hearing by a licensee, the Commission may grant a supersedeas, pending the final determination of the suspension.

 (c) A horse race meeting license shall be renewed every 3 years upon application and, shall not be transferred except as provided for under section 9357 of the act (relating to transfers of licenses). Renewals of horse race meeting licenses shall not be granted automatically.

§ 181.8. Racing days.

 (a) The Commission, consistent with the provisions of the Racing Act, its regulations and 4 Pa.C.S. § 1303 (relating to additional Category 1 slot machine license requirements), shall approve the specific number of race days requested by the licensed racing entity for the race meet. The required racing days under this section and 4 Pa.C.S. § 1303(a)(2) and (b) may be waived or modified by the Commission if the waiver or modification has been agreed to by the horsemen's organization and the licensed racing entity at the racetrack where the racing days are to be scheduled or raced.

 (b) The provisions of 4 Pa.C.S. § 1303(d) shall not apply if the reason for noncompliance with that section by a licensed racing entity is the cancellation of racing days due to the Commission's inability to properly regulate and oversee the conduct of horse racing in this Commonwealth due to inadequate funding.

 (c) The Commission shall submit to the Secretary of Revenue the approved number of racing days for each licensed racing entity, including the following information:

 (1) The names and addresses of the licensed racing entity;

 (2) The names and addresses of the owners, officers and general managers of the licensed racing entity; and

 (3) Any other information the Commission deems appropriate.

 (d) If a racing day is canceled by a licensed racing entity for reasons beyond the licensed racing entity's control, the Commission shall grant the licensed racing entity the right to conduct that racing day in the same or the next ensuing calendar year, if schedules permit. The Standardbred or Thoroughbred Horse Racing Bureau Directors, after consultation with the licensed racing entity and the horsemen's organization at the racetrack, may also cancel a race if it is determined that fewer than six horses have entered the race.

§ 181.9. Electronic wagering by licensed racing entity.

 (a) New Application. In accordance with the applicable provisions of Subchapter C of the act, a license racing entity seeking to offer all forms of electronic wagering, including advanced deposit wagering to individuals within this Commonwealth must apply to the Commission for the applicable license by submitting the following:

 (1) A completed electronic wagering license application, in the form approved by the Commission.

 (2) A Petition, in numbered paragraphs, containing the requested information as set forth in sections 9353 and 9355 of the act and setting forth any other information supporting its petition and request for an electronic wagering license.

 (3) Applicable licensing costs and fees as set forth in section 9352 (relating to licensing costs and fees) of the act.

 (b) Renewal Application/Petition. An electronic wagering license issued to a licensed racing entity shall be renewed annually. An electronic wagering renewal application and renewal petition shall be submitted on or before 120 days before the expiration of the license term along with the applicable costs and fees as set forth in section 9352 of the act.

 (1) The renewal application and petition, with the approval of the Commission or its designated staff may be limited to information updated or changed from the previous application or renewal.

 (c) A licensed racing entity seeking to utilize a racing vendor to operate its advanced deposit wagering system shall submit the appropriate notification and petition for review and approval by the Commission. The racing vendor entity shall simultaneously submit an application to operate the advanced deposit wagering system on behalf of the licensed racing entity under the provisions of Subchapter C of the act.

§ 181.10. Gratuities prohibited.

 No director, owner, officer, manager or employee of an applicant or licensed racing entity or their immediate family shall accept gifts, gratuities or anything of value from horse breeders, owners, trainers or other individuals in connection with racing related activities at any facility within this Commonwealth.

§ 181.11. Possession of firearms.

 No person, licensee, employee of a licensed racing entity, a secondary pari-mutuel organization, or their racing vendors and concessionaires shall possess a firearm within the racetrack enclosure unless that person has obtained a valid permit for the firearm from an appropriate criminal law enforcement authority and the firearm has been registered in writing with the Commission's security office at the racetrack and the director of security of the licensed racing entity.

§ 181.12. Racetrack financial responsibility.

 (a) Approval of a race meeting by the Commission does not establish the Commission as the insurer or guarantor of the safety of any participant or the physical condition of the racetrack facilities or the purse of any race.

 (b) A licensed racing entity shall agree to indemnify, save and hold harmless the Commission from any liability, if any, arising from unsafe conditions of the racetrack grounds or in the default in payment of purses.

 (c) If requested, a licensed racing entity shall provide to the Commission a copy of a certificate of liability insurance.

 (d) A licensed racing entity and its managing officers shall ensure that all purse moneys, disbursements and appropriate nomination race moneys are available to make timely distribution in accordance with the act, Commission rules, licensed racing entity rules and race conditions.

 (e) In accordance with section 9334 of the act (relating to State Racing Fund and tax rate) and the laws of the Commonwealth, a licensed racing entity and its managing officers shall pay to the Department of Revenue all necessary and proper taxes due. Upon request by the Commission, the license racing entity shall provide copies of the records of the payments.

§ 181.13. Books and records of pari-mutuel wagering.

 (a) Every licensed racing entity that conducts a horse race meeting at which pari-mutuel wagering is authorized shall maintain books and records that clearly show, by separate record, the total amount of money contributed to every pari-mutuel pool. The Commission and the Department of Revenue or their authorized representatives shall have access to examine all books and records and ascertain whether the proper amount due to the Commonwealth is being paid by the licensed racing entity.

 (b) The Commission may require periodic audits to determine that the licensed racing entity has funds available to meet those distributions for the purposes required by the act, Commission rules, the conditions of the race meeting and the obligations incurred in the daily operations of the race meeting. In its audit reports to the Commission, the licensed racing entity shall include file a copy of all tax returns, a balance sheet and a profit and loss statement. The confidentiality of the audits and reports may be the subject of a request for confidentiality as set forth in the Commission's regulations.

 (c) The Commission may request that a licensed racing entity file an unaudited balance sheet and profit and loss statement. Those submissions must be in a format which conforms with the requirements set out in the licensed racing entity's license application.

 (d) An association shall file an annual audit with the Commission within the time period prescribed by the Commission. The Commission, upon good cause shown, may extend the time for filing. These annual audit reports shall include all operations for the calendar or fiscal year of the licensed racing entity and shall be:

 (1) Verified under oath by at least two of the principal officers of the association.

 (2) Submitted by persons preparing the reports.

 (3) Separate records of each bank reconciliation must be maintained by the association in a manner which will clearly indicate all reconciling items between the balance per the bank statement and the balance per the books of the association at the date of reconciliation.

§ 181.14. Bond or letter of credit requirements.

 If applicable or required under section 9345 or section 9346 of the act (relating to commingling; and Standardbred horse racing purse money), a licensed racing entity shall file with the Commission a bond or letter of credit payable to the Commission for an amount determined by the provisions of the act.

§ 181.15. Filing of certain agreements with Commission.

 At the request of the Commission, a licensed racing entity shall promptly file with the Commission any purchase or change of ownership agreements, live racing agreements, or SPMO, racing vendor agreements or any other contract or agreement as the Commission may determine. In the event approval of the agreement is not obtained by the licensed racing entity prior to its execution, the agreement shall contain an express provision which states that the agreement will not be operative unless approved by the Commission.

§ 181.16. Horse entries prohibited.

 No director, officer, principle or employee of the licensed racing entity engaged in the active management of the racetrack facility or member of that person's immediate family, shall race or permit or cause to be raced any horse in which that person has either direct or indirect interest, at any meeting conducted by that licensed racing entity.

§ 181.17. Fines and penalties.

 (a) General rule. The Commission may impose administrative fines upon any licensed or unlicensed racing entity, association or person participating in horse racing at which pari-mutuel wagering is conducted, other than as a patron, for a violation of any provision of this chapter or rule or regulation of the Commission, not exceeding $10,000 for each violation. Each day may be considered a separate violation. Fines shall be deposited in the State Racing Fund and may be appropriated for the enforcement of this chapter.

 (b) Interests.

 (1) No owner, officer or employee of a licensed racing entity or their immediate family shall have any direct or indirect interest in a race horse that is participating in a horse race meeting at which the person or relative listed under this paragraph holds any interest in the licensed racing entity conducting the horse race meeting or in the racetrack facility.

 (2) The Commission may impose a fine upon any person for a violation of this subsection in accordance with subsection (a).

§ 181.18. Searches within track premises.

 To assist in detection of illegal pari-mutuel betting by racing personnel, effectively prevent the use of improper racing devices, restrict the possession of dangerous weapons on racing premises, control the expanded traffic in unlawful drugs and drug related paraphernalia, maintain proper and adequate supervision of racing and enforce the laws of the Commonwealth, the Commission or its representatives, shall have the right and privilege to conduct a search within the areas of the track premises which any owner, trainer, driver, groom, vendor of racing equipment and service or other licensee acting in their behalf, may occupy and to control including all personal property and effects and as a result of the search, the Commission or its representatives, shall have the power and authority to seize an article, within the areas, which may be forbidden or be in violation of the rules and regulations of the Commission.

§ 181.19. Commission office space.

 A licensed racing entity shall provide adequate office and administrative space for the use of the Judges, Stewards and other Commission personnel as required by the Commission. The location and size of the office space, furnishings and equipment required under this section must be approved by the Commission.

ANNUAL OR PRE-MEET SUBMISSIONS

§ 181.21. Submission of information to the Commission.

 (a) At the beginning of each meeting or at any other time as requested by the Commission, every licensed racing entity shall furnish the following information to the Commission:

 (1) The current name and experience of the licensed racing entity's management employees and racing officials;

 (2) Racetrack facility maintenance records;

 (3) A report and certificate by a duly licensed civil engineer, land surveyor or other racetrack consultant that the racetrack has been properly measured from wire to wire;

 (4) A report and certificate by a duly licensed civil engineer, land surveyor or other racetrack consultant evidencing the accurate measurement and survey of the turns of the racetrack oval;

 (5) Detailed information regarding the racetrack's surface, materials and depth, maintenance records and information relating to the drainage system for the racetrack;

 (6) The design and construction of the pylons, including the use of the lightening lane or the removal of the pylons must be approved by the Commission;

 (7) Names of the racetrack personnel hired to maintain the track surface and a list of the necessary equipment, including any back-up equipment for maintaining the track surface.

 (b) Prior to the first day of a race meeting, a licensed racing entity shall deliver to the Commission a copy of the fire marshal's certification regarding the licensed racing entity's compliance with fire safety regulations or the fire marshal's plan of correction, if applicable. The certification or plan must be based on an inspection of the racetrack grounds conducted by the fire marshal not more than 30 days before the first day of a race meeting.

 (c) All detailed security and operational plans for the upcoming meet.

RACETRACK FACILITIES—STANDARDBRED

§ 181.31. General provisions.

 (a) The licensed racing entity shall ensure that the public areas of the racetrack grounds are designed and maintained for the comfort and safety of the patrons and licensees and are accessible to all persons with disabilities as required by law.

 (b) The licensed racing entity shall provide and maintain adequate restroom facilities for the patrons and licensees.

 (c) The licensed racing entity shall provide an adequate supply of free drinking water.

 (d) The licensed racing entity shall maintain all facilities on the racetrack grounds to ensure the safety and cleanliness of the facilities at all times.

 (e) The licensed racing entity shall ensure the surface of the racetrack is designed, constructed and maintained to provide for the safety of the drivers and horses.

 (f) The licensed racing entity shall maintain sufficient and adequate equipment and competent personnel for the purpose of continued maintenance of the racetrack surface and plant grounds and facility.

 (g) During a race performance, the licensed racing entity shall also provide:

 (1) A first aid room equipped with at least two beds and other appropriate equipment; and

 (2) The services of at least one physician, a nurse practitioner or paramedic.

 (h) Human ambulance: A licensed racing entity shall provide and maintain at least one properly equipped human ambulance to be present during qualifying races and during the regular racing program for participants, licensees and patrons.

 (1) The ambulance shall be staffed with at least two Emergency Medical Technicians.

 (2) If the ambulance is being used to transport an individual, the association may not conduct a race until the ambulance is replaced.

 (i) At the beginning of each meet or at least annually, the licensed racing entity shall provide mandatory orientation of racing emergency procedures for all emergency response personnel as previously set forth.

§ 181.32. Judges' stand.

 The licensed racing entity shall provide adequate stands and facility for the Judges and, as required, other officials to have a clear view of the racetrack. The location and design of the stands shall be reviewed and approved by the Commission.

§ 181.33. Audio and visual equipment.

 (a) A licensed racing entity shall provide and maintain in good working order a communication system between the following:

 (1) Judges' stand;

 (2) Racing office;

 (3) Tote room;

 (4) Paddock;

 (5) Test barn;

 (6) Starting gate;

 (7) Video camera locations;

 (8) Commission Veterinarian;

 (9) Track announcer;

 (10) Location of the ambulances (equine and human); and

 (11) Commission track office and other locations and persons designated by the Commission.

 (b) The licensed racing entity shall provide and maintain a public address system capable of clearly transmitting announcements to the patrons and to the stable area.

§ 181.34. Photo finish.

 (a) A licensed racing entity shall provide an electronic photo finish device with mirror image to photograph the finish of each race and record the time of each horse in at least fifths of a second. The location and operation of the photo finish devices must be approved by the Commission before its first use in a race or in the meet.

 (b) The licensed racing entity shall promptly post a photograph of each photo finish for win, place or show in an area accessible to the public.

 (c) The licensed racing entity shall ensure that the photo finish devices are calibrated before the first day of each race meeting and at other times as required by the Commission.

 (d) On request by the Commission, the licensed racing entity shall provide, without cost, a print from a negative of a photo finish to the Commission. Photo finish negatives of each race shall be maintained by the association for not less than 6 months after the end of the race meeting or another period as may be requested by the Judges or the Commission.

§ 181.35. Videotaping system.

 (a) A licensed racing entity shall provide a videotaping system approved by the Commission. Cameras must be located to provide clear panoramic and head-on views of each race. Separate monitors, which simultaneously display the images received from each camera and are capable of simultaneously displaying a synchronized view of the recordings of each race for review shall be provided in the Judges' stand. The location and construction of video towers must be approved by the Commission.

 (b) The Judges may, at their discretion, direct the video camera operators to videotape the activities of any horse or person handling horses prior to, during or following a race.

 (c) All races must be recorded by at least three video cameras.

 (d) The licensed racing entity shall, upon request, provide to the Commission, without cost, a copy of a videotape of a race.

 (e) Videotapes recorded prior to, during and following each race shall be maintained by the licensed racing entity for not less than 6 months after the end of the race meeting or another period as may be requested by the Judges or the Commission.

 (f) A licensed racing entity shall provide a viewing area in which, on approval by the Judges, an owner, trainer, driver or other interested individual may view a videotape recording of a race.

 (g) Following any race in which there is an inquiry or objection, the licensed racing entity shall display to the public on designated monitors the videotaped replays of the incident in question which were utilized by the Judges in making their decision.

§ 181.36. Starting gates.

 During the race meet and at racing hours, a licensed racing entity shall provide at least two operable starting gates, which have been approved by the Commission.

§ 181.37. Distance markers.

 (a) A licensed racing entity shall provide starting point markers and distance poles in a size and position that is clearly seen from the Judges' stand.

 (b) All poles and markers shall be positioned at least 10 feet off the inside rail.

 (c) The starting point markers and distance poles must be marked as follows:

 (1) 3/4 pole—Red and white horizontal stripes

 (2) 1/2 pole—Red and white horizontal stripes

 (3) 1/4 pole—Red and white horizontal stripes

 (4) 1/8 poles—Green and white horizontal stripes

 (5) 1/16 poles—Black and white horizontal stripes

§ 181.38. Saddle pad colors.

 (a) All pari-mutuel racetracks shall adopt the following color format for saddle pad colors for post positions in each race:

 (1) Post Position One—Red

 (2) Post Position Two—Blue

 (3) Post Position Three—White

 (4) Post Position Four—Green

 (5) Post Position Five—Black

 (6) Post Position Six—Yellow

 (7) Post Position Seven—Pink

 (8) Post Position Eight—Gray

 (9) Post Position Nine—Purple

 (10) Post Position Ten—Blue/Red

 (11) Post Position Eleven—Light Blue

 (12) Post Position Twelve—Red/White

 (b) All saddle pad numbers, with the exception of post positions three and five, shall be white with a black border. The saddle pad numbers for post positions three and five shall be solid black and solid white, respectively.

§ 181.39. Lighting.

 (a) A licensed racing entity shall provide lighting for the racetrack and the patron facilities that is adequate to ensure the safety and security of the patrons, licensees and horses.

 (b) A licensed racing entity shall provide the necessary and appropriate lighting to ensure the proper operation of the videotape and photo finish equipment which must be approved by the Commission.

 (c) The licensed racing entity shall provide adequate additional lighting in the stable area as required by the Commission and shall maintain a back-up lighting system that is sufficient to ensure the safety of race participants and patrons.

§ 181.40. Equine ambulance.

 (a) A licensed racing entity shall provide a horse ambulance staffed by trained personnel available in the stable area of the racetrack grounds during training, qualifying and race days for the removal of injured animals.

 (b) The Commission may establish the following requirements for the equine ambulance:

 (1) It must be properly ventilated and kept at a proper location ready for immediate or emergency use.

 (2) The ambulance must be a covered vehicle that is low to the ground and large enough to accommodate a horse in distress. The ambulance must be also be equipped with and be able to do the following:

 (i) Navigate on the racetrack during all weather conditions;

 (ii) Transport a horse off the association grounds;

 (iii) Large, portable screens to shield a horse from public view;

 (iv) Ramps to facilitate loading a horse;

 (v) Adequate means of loading a horse that is down;

 (vi) A rear door and a door on each side;

 (vii) A padded interior;

 (viii) A movable partition to initially provide more room to load a horse and to later restrict a horse's movement;

 (ix) A shielded area for the person who is attending to the horse; and

 (x) An adequate area for the storage of water and veterinary drugs and equipment.

 (c) A licensed racing entity may not conduct a race unless an equine ambulance or other Commission-approved substitute is readily available.

 (d) The equine ambulance, its supplies and attendants and the operating procedures for the equine ambulance must be approved by the Commission.

 (e) The equine ambulance must be stationed at a location designated by the licensed racing entity immediately available for an emergency.

§ 181.41. Barns.

 (a) A licensed racing entity shall provide barns containing a sufficient number of stalls to accommodate all horses approved to race and all other horses approved to be on the grounds, unless the licensed racing entity has request and received approval by the Commission to provide a paddock area for horses being shipped in for races. At all times, as a condition of licensure, the licensed racing entity shall provide the barn/stable area configuration or if applicable the configuration of the paddock facility.

 (b) A licensed racing entity shall ensure that the barns are kept clean and in good repair. Each barn, including the receiving barn, must have a hot and cold water supply available, be well-ventilated, have proper drainage and be constructed to be comfortable in all seasons.

 (c) A licensed racing facility shall ensure that each horse is stabled in an individual box stall with minimum dimensions of 10 by 10 feet.

 (d) A licensed racing entity shall provide an adequate area for the placement of manure removed from the stalls. All manure must be removed from the stable area daily. The association shall ensure that refuse from the stalls and other refuse are kept separately.

 (e) Licensed racing entities shall comply with all environmental, storage and disposal regulations as required by law.

RACETRACK FACILITIES—THOROUGHBRED

§ 181.51. Thoroughbred facilities and equipment.

 (a) A licensed racing entity shall ensure that the public areas of the association grounds are designed and maintained for the comfort and safety of the patrons and licensees and are accessible to all persons with disabilities as required by Federal law.

 (b) A licensed racing entity shall provide and maintain adequate restroom facilities for the patrons and licensees.

 (c) A licensed racing entity shall provide an adequate supply of free drinking water.

 (d) A licensed racing entity shall maintain all facilities on association grounds to ensure the safety and cleanliness of the facilities at all times.

 (e) The licensed racing entity shall ensure the surface of the racetrack is designed, constructed and maintained to provide for the safety of the jockeys and horses.

 (f) The licensed racing entity shall maintain sufficient and adequate equipment and competent personnel for the purpose of continued maintenance of the racetrack surface and plant grounds and facility.

 (g) During a race performance, the licensed racing entity shall provide:

 (1) A first aid room equipped with at least two beds and other appropriate equipment; and

 (2) The services of at least one physician, a nurse practitioner or paramedic.

 (h) The licensed racing entity shall provide a properly equipped to human transport ambulance and equine ambulance as set forth in § 181.61 (relating to human and equine ambulances).

 (i) At the beginning of each meet or at least annually, the licensed racing entity shall provide mandatory orientation of racing emergency procedures for all emergency response personnel set forth in these regulations.

§ 181.52. Concussion protocol program.

 (a) A licensed racing entity may establish a concussion protocol program for the education, evaluation, diagnosis and management of concussion of jockeys at its racetrack. A licensed racing entity seeking permission to adopt a concussion protocol program shall petition the Commission and provide all the necessary medical, procedural and enforcement information regarding the proposed program for review by the Commission.

 (b) The approval of a program by the Commission shall not be construed to make the Commission or the Stewards the guarantor or insurer of the jockey's physical condition.

 (c) The protocol procedures may include that:

 (1) Each jockey shall acknowledge in writing that they have been made aware of the concussion protocols in place for the racetrack at which they are riding;

 (2) A minimum assessment of the jockey which shall include the most current Sport Concussion Assessment Tool examination when necessary and be performed by a medical professional licensed within this Commonwealth to perform the evaluation;

 (3) A return-to-ride guideline shall be established to clear a jockey who has been concussed or is believed to have been concussed once the jockey is declared fit-to-ride by a medical professional authorized to do so; and,

 (4) If implemented, the Stewards at the racetrack shall be notified when a jockey is not permitted to ride and when the jockey has been authorized to return to riding.

§ 181.53. Stewards' stands.

 A licensed racing entity shall provide adequate stands for Stewards and other officials to have a clear view of the racetrack. The location and design of the stands shall be reviewed and approved by the Commission.

§ 181.54. Audio and visual equipment.

 (a) A licensed racing entity shall provide and maintain in good working order a communication system between the:

 (1) Stewards' stand;

 (2) racing office;

 (3) tote room;

 (4) jockeys' room;

 (5) paddock;

 (6) test barn;

 (7) starting gate;

 (8) weigh in scale;

 (9) video camera locations;

 (10) clocker's stand;

 (11) racing veterinarian;

 (12) track announcer;

 (13) location of the ambulances (equine and human); and

 (14) other locations and persons designated by the Commission.

 (b) A licensed racing entity shall provide and maintain a public address system capable of clearly transmitting announcements to the patrons and to the stable area.

§ 181.55. Photo finish.

 (a) A licensed racing entity shall provide two electronic photo-finish devices with mirror image to photograph the finish of each race and record the time of each horse in at least hundredths of a second. The location and operation of the photo finish devices must be approved by the Commission before its first use in a race or in the meet.

 (b) The licensed racing entity shall promptly post a photograph of each photo finish for win, place or show in an area accessible to the public.

 (c) The licensed racing entity shall ensure that the photo finish devices are calibrated before the first day of each race meeting and at other times as required by the Commission.

 (d) Upon request by the Commission, the licensed racing entity shall provide, without cost, a print of a photo finish to the Commission. Photo finish records of each race shall be maintained by the licensed racing entity for not less than 6 months after the end of the race meeting or another period as may be requested by the Stewards or the Commission.

§ 181.56. Videotaping system.

 (a) A licensed racing entity shall provide a videotaping system approved by the Commission. Cameras must be located to provide clear panoramic and head-on views of each race. Separate monitors, which simultaneously display the images received from each camera and are capable of simultaneously displaying a synchronized view of the recordings of each race for review shall be provided in the Stewards' stand. The location and construction of video towers must be approved by the Commission.

 (b) One camera, designated by the Commission, shall videotape the pre-race loading of all horses into the starting gate and shall continue to videotape them until the field is dispatched by the Starter.

 (c) One camera, designated by the Commission, shall videotape the apparent winner of each race from the finish line until the horse has returned, the jockey has dismounted and the equipment has been removed from the horse.

 (d) The Stewards may, at their discretion, direct the video camera operators to videotape the activities of any horses or persons handling horses prior to, during or following a race.

 (e) Races run on an oval track must be recorded by at least three video cameras. Races run on a straight course must be recorded by at least two video cameras.

 (f) A licensed racing entity shall, upon request, provide to the Commission, without cost, a copy of a videotape of a race.

 (g) Videotapes recorded prior to, during and following each race shall be maintained by the licensed racing entity for not less than 6 months after the end of the race meeting or another period as may be requested by the Stewards or the Commission.

 (h) A licensed racing entity shall provide a viewing room in which, on approval by the Stewards, an owner, trainer, jockey or other interested individual may view a videotape recording of a race.

 (i) Following any race in which there is an inquiry or objection, the licensed racing entity shall display to the public on designated monitors the videotaped replays of the incident in question which were utilized by the Stewards in making their decision.

§ 181.57. Racetrack surface.

 (a) In addition to the provisions of § 181.21 (relating to submission of information to the Commission), the licensed racing entity shall ensure that the surface of a racetrack, including the cushion, subsurface and base, are designed, constructed and maintained to provide for the safety of the jockeys and horses.

 (b) Distances to be run shall be measured from the starting line at a distance 3 feet out from the inside rail.

 (c) The surveyor's report must be approved by the Commission prior to the first race day of the meeting.

 (d) A licensed racing entity shall provide an adequate drainage system for the racetrack.

 (e) A licensed racing entity shall provide adequate equipment and personnel to maintain the track surface in a safe training and racing condition. The licensed racing entity shall also provide back-up equipment for maintaining the track surface.

 (f) A licensed racing entity that conducts races on a turf track shall:

 (1) maintain an adequate stockpile of growing medium; and

 (2) provide a system capable of adequately watering the entire turf course evenly.

§ 181.58. Starting gates.

 (a) During racing hours, a licensed racing entity shall provide at least two operable padded starting gates, which have been approved by the Commission.

 (b) A licensed racing entity shall make at least one starting gate and qualified starting gate personnel available for schooling during designated training hours.

 (c) A licensed racing entity shall ensure that an assistant Starter is available for each horse in an official race.

 (d) If a race is started at a place other than in a chute, the association shall provide and maintain in good operating condition backup equipment for moving the starting gate. The backup equipment must be immediately available to replace the primary moving equipment in the event of failure.

§ 181.59. Distance markers.

 (a) A licensed racing entity shall provide starting point markers and distance poles in a size and position that is clearly seen from the Stewards' stand.

 (b) The starting point markers and distance poles must be marked as follows:

 (1) 1/4 poles—Red and white horizontal stripes

 (2) 1/8 poles—Green and white horizontal stripes

 (3) 1/16 poles—Black and white horizontal stripes

 (4) 220 yards—Green and white

 (5) 250 yards—Blue

 (6) 300 yards—Yellow

 (7) 330 yards—Black and white

 (8) 350 yards—Red

 (9) 400 yards—Black

 (10) 440 yards—Red and white

 (11) 550 yards—Black and white horizontal stripes

 (12) 660 yards—Green and white horizontal stripes

 (13) 770 yards—Black and white horizontal stripes

 (14) 870 yards—Blue and white horizontal stripes

§ 181.60. Lighting.

 (a) A licensed racing entity shall provide lighting for the racetrack and the patron facilities that is adequate to ensure the safety and security of the patrons, licensees and horses. Lighting to ensure the proper operation of the videotape and photo finish equipment must be approved by the Commission.

 (b) A licensed racing entity shall provide adequate additional lighting in the stable area as required by the Commission.

 (c) If a licensed racing entity conducts racing at night, the association shall maintain a back-up lighting system that is sufficient to ensure the safety of race participants and patrons.

§ 181.61. Human and equine ambulances.

 (a) A licensed racing entity shall provide and maintain at least one human ambulance and at least one horse ambulance during times horses are permitted to train or race.

 (1) The human transport ambulance shall be supplied and equipped in accordance with the requirements set forth by the Department of Health and staffed with at least one certified paramedic during training and two certified paramedics during racing hours. The paramedics shall be dully certified in accordance with the standards set forth by the Department of Health.

 (2) If the human ambulance is being used to transport an individual, the license racing entity may not conduct a race or allow horses with riders on the racetrack until the ambulance is replaced.

 (b) Unless otherwise approved by the Commission or the Stewards, an ambulance shall follow the field at a safe distance during the running of races. If not following the field, the human ambulance shall be parked at an appropriate entrance to the racing strip to allow ease of access.

 (c) A licensed racing entity shall provide an equine ambulance staffed by trained personnel on association grounds on each day that the racetrack is open for racing or training.

 (d) The Commission may establish the following requirements for the equine ambulance:

 (1) The ambulance must be properly ventilated and kept at an appropriate entrance ready for immediate or emergency response.

 (2) The ambulance must be a covered vehicle that is low to the ground and large enough to accommodate a horse in distress. The ambulance must be also equipped with and be able to do the following:

 (i) navigate on the racetrack during all weather conditions;

 (ii) transport a horse off the association grounds;

 (iii) large, portable screens to shield a horse from public view;

 (iv) ramps to facilitate loading a horse;

 (v) adequate means of loading a horse that is down;

 (vi) a rear door and a door on each side;

 (vii) a padded interior;

 (viii) a movable partition to initially provide more room to load a horse and to later restrict a horse's movement;

 (ix) a shielded area for the person who is attending to the horse; and

 (x) an adequate area for the storage of water and veterinary drugs and equipment.

 (e) A licensed racing entity may not conduct a race unless an equine ambulance or other Commission-approved substitute is readily available.

 (f) The equine ambulance, its supplies and attendants and the operating procedures for the equine ambulance must be approved by the Commission.

 (g) The equine ambulance must be stationed at a location designated by the licensed racing entity immediately available for an emergency.

§ 181.62. Barns.

 (a) A licensed racing entity shall provide barns containing a sufficient number of stalls to accommodate all horses approved to race and all other horses approved to be on the grounds. The assignment of barns and stalls are within the sole authority and discretion of the licensed racing entity and determination relating to barns and stall may not be appealed to the Commission. The licensed racing entity's stable area configuration and facilities must be approved by the Commission.

 (b) A licensed racing entity shall ensure that the barns are kept clean and in good repair. Each barn, including the receiving barn, must have a hot and cold water supply available, be well-ventilated, have proper drainage and be constructed to be comfortable in all seasons.

 (c) A licensed racing entity shall ensure that each horse is stabled in an individual box stall with minimum dimensions of 10 by 10 feet.

 (d) A licensed racing entity shall provide an adequate area for the placement of manure removed from the stalls. All manure must be removed from the stable area daily. The licensed racing entity shall ensure that refuse from the stalls and other refuse are kept separately.

 (e) Licensed racing entities shall comply with all environmental, storage and disposal regulations as required by law.

OPERATIONS

§ 181.71. Test barn.

 In addition to the requirements set forth in Chapter 401 (relating to prohibited and unlawful practices—temp- orary regulations) and as a condition of its license, a licensed racing entity shall provide a test barn for taking, securing and storing specimens of urine, blood or other biological substances for pre-race or post-race testing. Access to the test barn shall be limited to authorized persons only. Entrances shall be locked or guarded at all times by licensed racing entity security.

§ 181.72. Enforcement.

 Each licensed racing entity association shall be responsible for enforcing the provisions of this chapter subject to supervision by designated officials of the Commission.

§ 181.73. Licensed racing entity security personnel.

 (a) Licensed racing entities shall employ an adequate number of persons as security guards to protect the health and safety of patrons, licensees and horses within the racetrack enclosure. Those designated security personnel shall maintain security controls over the racetrack grounds. All security controls and protocols are subject to the approval of the Commission.

 (b) In addition to Commission licensure, a licensed racing entity may establish an internal system or method of issuing credentials or passes to restrict access to its restricted areas or to ensure that all participants at its race meeting are licensed as required by these rules.

 (c) A license racing entity shall prevent access to and shall remove or cause to be removed from its restricted areas any person who is unlicensed or who has not been issued a visitor's pass or other identifying credential or whose presence in the restricted area is unauthorized.

§ 181.74. Admission to premises and security.

 (a) Unless otherwise authorized by the Commission, a licensed racing entity shall provide continuous security in the stable area during all times that horses are stabled on the grounds of the racetrack enclosure. Security personnel shall request that every person seeking entrance into the stable area provide a valid Commission license or racetrack credential or appropriate visitor's pass issued by the association.

 (1) No person shall refuse to display or produce a valid Commission license, racetrack credential or other identification. Anyone refusing to display or produce a valid Commission license or credentials shall be refused entry and/or may be referred to the Judges or Stewards.

 (b) A written record of all individuals admitted to the stable area between the hours of 12 a.m./midnight and 5 a.m. shall be maintained by the licensed racing entity and shall be produced upon request by the Commission.

 (1) The written record shall, at a minimum, contain the name of the person admitted, the person's license number and the time admitted and reason for the person's presence.

 (c) Upon request by the Commission, a licensed racing entity shall provide a list of the security personnel, including the name, qualifications, training, duties duty station and area supervised by each employee.

 (d) Each day, the head of security for a licensed racing entity shall deliver a written report to the Stewards regarding any occurrences on the racetrack grounds on the previous day. Not later than 24 hours after an incident occurs requiring the attention of security personnel, the head of security shall deliver to the Stewards a written report describing the incident. The report must include the name of each individual involved in the incident, the circumstances of the incident and any recommended charges against each individual involved.

§ 181.75. Admission and removal of horses.

 (a) All horses entered to compete shall be present on racetrack grounds no less than 2 hours prior to the scheduled post time of the race for which the horse is entered to compete. Horses not arriving on racing association property at least 2 hours prior to the scheduled post time of the race on the day for which the horse is entered to compete are subject to scratch, with discretion given to Stewards to consider extenuating circumstances.

 (b) A complete and accurate list of all horses, tattoo numbers and description of the horses entering the stable area shall be prepared by racetrack security personnel, who shall determine the identity of the trainer, owner, van driver or other designated person entering with the horses.

 (c) All horses leaving the racetrack grounds must be registered with the licensed racing entity's security personnel, who shall prepare a detailed and accurate list of all horses, including tattoo numbers, description and the name/license number of those persons accompanying the horse.

 (d) Once admitted onto the racetrack grounds to participate in a race, no horse shall be removed from the racetrack at any time without specific medical or veterinary authorization and without approval from the Judges or Stewards and racetrack management.

§ 181.76. Fire prevention.

 (a) An association shall develop and implement a program for fire prevention on association grounds. An association shall instruct employees working on association grounds of the procedures for fire prevention.

 (b) No person shall:

 (1) Smoke in stalls, feed rooms or under shed rows;

 (2) Burn open fires or oil or gas lamps in the stable area;

 (3) Leave unattended any electrical appliance that is plugged-in to an electrical outlet;

 (4) Permit horses to come within reach of electrical outlets or cords;

 (5) Store flammable materials such as cleaning fluids or solvents in the stable area; or

 (6) Lock a stall which is occupied by a horse.

 (c) An association shall post a notice in the stable area which lists the prohibitions outlined in subsections (a) and (b).

§ 181.77. Admission of minors.

 Minors under 18 years of age shall not be admitted to the track. Any minor legally employed by any association, concessionaire or other person duly licensed by the Commission shall be admitted to the track for the sole purpose of performing his duties as an employee. A minor, accompanying a parent or natural guardian who is also a licensee and whose employment requires him to be present in the stable or paddock area, shall be admitted to the stable or paddock area with the licensee. In no event shall the minor be permitted to wager upon any race nor shall the minor be permitted to be in the area of the track other than that area in which his duties are to be performed.

§ 181.78. Health certificate.

 No horse shall be admitted to any part of the plant or premises of any pari-mutuel racing association under the jurisdiction of the Commission unless a health certificate is presented when admission to the premises is sought. The Certificate must state the following regarding the health and physical condition of the horse:

 (1) The horse was examined thoroughly within a 7-day period preceding the date admission is sought.

 (2) The horse was free of any evidence of infectious, contagious or transmissible disease and was afebrile at the time of the examination.

 (3) The horse was free of ectoparasites at the time of the examination.

 (4) The horse has not, within the past 2 weeks, been exposed to other horses with any known infectious, contagious or transmissible diseases.

CHAPTER 183. SECONDARY PARI-MUTUEL ORGANIZATIONS—TEMPORARY REGULATIONS

Sec.

183.1.	General provisions.
183.2.	License costs and fees.
183.3.	Application requirements.
183.4.	Review and approval.
183.5.	Good-faith cooperation.
183.6.	Waiver.
183.7.	Additional application information.
183.8.	SPMO operations.
183.9.	Penalties and enforcement.

§ 183.1. General provisions.

 (a) New application: As set forth in sections 9322 and 9351 of the act, a SPMO seeking to engage in electronic wagering or otherwise offer ADW to individuals within this Commonwealth, as defined in the act, must apply to the Commission for an electronic wagering license by submitting a completed license application as approved by the Commission.

 (1) An incomplete application shall not be reviewed or considered for licensure.

 (2) A SPMO may not begin wagering operations until approved by the Commission or its designee.

 (b) Annual Renewal applications: An electronic wagering license issued to a secondary pari-mutuel organization shall be renewed annually. An electronic wagering renewal application shall be submitted on or before 120 days before the expiration of the license term. If the renewal application is approved by the Commission, the license renewal shall take effect January 1.

 (c) The following shall apply to a secondary pari-mutuel organization:

 (1) Each SPMO employee directly or indirectly responsible for the acceptance of wagers on horse races or the transmittal of wagering information to and from the Commonwealth must be properly licensed.

 (2) A secondary pari-mutuel organization must comply with each rule and regulation of the Commission.

§ 183.2. License costs and fees.

 (a) The applicant shall submit, along with its license application, the applicable license fees set forth in section 9352 of the act (relating to licensing costs and fees). The applicant shall also pay all costs incurred by the Commission in reviewing an application for an initial license, including any legal and investigative costs and the cost of other necessary outside professionals and consultants.

 (1) Any portion of the payment not required to complete the investigation shall be refunded to the applicant within 20 days of the granting, withdrawal or rejection of the initial license application.

 (3) To the extent additional costs will be necessary, the applicant shall reimburse the Commission in an amount reasonably requested by the Commission within 10 days of receipt of the request. Failure to submit an additional requested payment shall result in suspension of the processing of the license application and may result in denial of the license.

 (b) For purposes of a renewal license, the SPMO shall submit a renewal application, along with the applicable renewal fee and costs for the review of the renewal license as set forth in the act.

§ 183.3. Application requirements.

 (a) A SPMO application for an initial or renewal license shall be in the form and manner prescribed by the Commission in accordance with this chapter. The Commission may deny a license to an applicant that provides false or misleading information or omits material information from the application. The SPMO application shall include all of the following:

 (1) The applicant's legal name.

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

 (3) The name, address and date of birth of each principal with a 5% or greater share of ownership or beneficial interest in the applicant.

 (4) Audited financial statements for the last 3 years or, if the applicant does not have audited financial statements, financial and other pertinent information as required by the Commission to determine that the applicant is financially capable of operating as a going concern and protecting accounts.

 (5) A detailed plan of how the wagering system will operate. The Commission may require changes in the proposed plan of operations as a condition of granting a license. There shall not be subsequent material changes in the plan of operations unless ordered by the Commission or until approved by the Commission after receiving a written request.

 (6) A list of all personnel processing wagers on races made by residents of this Commonwealth. This list shall be kept current and be provided to the Commission upon request.

 (7) Copies of all documents required under this subsection by the Commission.

 (8) Certification of compliance with totalisator standards and licensing requirements adopted by the Commission.

 (9) A type II SAS 70 report or other independent report in a form acceptable to the Commission completed within the preceding 12 months, to assure adequate financial controls are in place in the secondary pari-mutuel organization.

 (10) An agreement to allow the Commission to inspect and monitor each facility used by the secondary pari-mutuel organization for accepting, recording or processing pari-mutuel wagers accepted in this Commonwealth.

 (11) Certification of the use of a pari-mutuel system which meets all requirements for a pari-mutuel system utilized by a licensed racing entity in this Commonwealth.

 (12) Written evidence of tax compliance as set forth in section 9361 of the act (relating to tax compliance requirement).

§ 183.4. Review and approval.

 (a) The Commission shall determine the suitability, fitness and experience of a SPMO and its key employees, consistent with the public interest, convenience and necessity and the best interests of racing generally, including, the provisions set forth in section 9318(e) and (f) of the act (relating to licenses for horse race meetings) and the following:

 (1) Meeting general industry standards for business and financial practices, procedures and controls.

 (2) Possession of a wagering system that ensures that all wagering information is transmitted to and calculated in the appropriate host track pool.

 (3) Utilization of a totalisator system that meets wagering-industry standards and certification criteria.

 (4) Meeting general industry standards for physical security of computerized wagering systems, business records, facilities and patrons.

 (5) Having no indications of improper manipulation of a secondary pari-mutuel organization's wagering system, including software.

 (6) Having policies and procedures that ensure a secondary pari-mutuel organization's key individuals have applied and are eligible for all required occupational licenses.

 (7) Having an annual independent audit with no audit opinion qualifications that reflect adversely on integrity.

 (8) Having a system that verifies the identity of each person placing a wager and requires the person placing a wager to disclose each beneficial interest in a wager the secondary pari-mutuel organization accepts.

 (9) Having a real-time independent monitoring system to monitor wagering activity to detect suspicious patterns, including any that might indicate criminal activity or regulatory violations. The system must verify each transaction performed by the totalisator system and provide expeditious notice of any discrepancies or suspicious activity to the host track, wagering site, due diligence investigating body and any affected regulatory agency.

 (10) Having a satisfactory record of customer relations, including no excessive unresolved patron complaints concerning the secondary pari-mutuel organization's business practices.

 (11) Holding required permits, licenses, certifications or similar documents that may be required by a racing, gaming or other pari-mutuel wagering jurisdiction.

 (12) Having sufficient measures to protect customer funds from being commingled with other moneys.

 (xiii) Publicizing and providing a sufficient program for customer self-exclusion and wagering limitation.

 (13) Having expertise in pari-mutuel wagering and being technologically capable of participating in simulcast and wagering activities.

 (b) As set forth in section 9353(b) of the act (relating to license application procedures), the Commission may also consider the following information in making a determination for a SPMO's initial license or renewal application:

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

 (i) Whether the applicant or its principals are unsuitable.

 (ii) Whether the applicant or its principals have been a party to litigation over business practices, disciplinary actions over a business license or refusal to renew a license.

 (iii) Whether the applicant or its principals have been a party to proceedings in which unfair labor practices, discrimination or violation of government regulations pertaining to racing or gaming laws was an issue or bankruptcy proceedings.

 (iv) Whether the applicant or its principals have failed to satisfy judgments, orders or decrees.

 (v) Whether the applicant or its principals have been delinquent in filing tax reports or remitting taxes.

 (2) The quality of physical facilities and equipment.

 (3) The financial ability of the applicant to conduct wagering.

 (4) The protections provided to safeguard accounts, including a certification from the licensee's chief financial officer that account funds will not be commingled with other funds as required under this chapter.

 (5) The management ability of the applicant and its principals.

 (6) Compliance of the applicant with applicable statutes, charters, ordinances and administrative regulations.

 (7) The efforts of the applicant to promote, develop and improve the horse racing industry in this Commonwealth.

 (8) The efforts of the applicant to safeguard and promote the integrity of pari-mutuel wagering in this Commonwealth.

 (9) The economic impact of the applicant upon the Commonwealth.

 (10) The secondary pari-mutuel organization and the secondary pari-mutuel organization's owners and sources of funds must have sufficient financial means to participate in simulcast and wagering activities, including sufficient assets and means to pay industry-related debts and obligations and to fund the operations of the secondary pari-mutuel organization.

§ 183.5. Good-faith cooperation.

 The secondary pari-mutuel organization must be fully cooperative and act in good faith with all disclosure and other duties involved in a due diligence investigation, voluntarily submit to regulatory and investigating body oversight, permit inspection of each business record upon request by a regulatory authority or investigating body, promptly honor regulatory or investigating body requests for wagering patterns or other information and, after reasonable notice, permit full access to each facility and property by a regulatory authority or investigating body.

§ 183.6. Waiver.

 (a) A due diligence investigation may rely on an investigation and oversight conducted by a Commission-approved entity.

 (b) The Commission may not consent to the acceptance of an interstate off-track wager by a secondary pari-mutuel organization that has not been determined to be suitable under this section.

§ 183.7. Additional application information.

 (a) The Commission may request additional information from an applicant if the additional information would assist the Commission in deciding whether to issue or renew a license, including all of the following:

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

 (2) A list of each contract between the applicant and a third party related to operations. The Commission may review the contracts at any time upon request.

§ 183.8. SPMO operations.

 (a) Before doing business in this Commonwealth all of the following are required of a SPMO licensee:

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

 (2) Submit a copy of each document required to be filed with the Department of Revenue and each document related to an audit or investigation by any Federal, State or local regulatory agency to the Commission.

 (3) Remit to the Commission a copy of each document required to be filed with any Federal, State or local regulatory agency.

 (b) Operational Requirements:

 (1) A licensee shall submit quarterly reports to the Commission providing amounts wagered by residents in this Commonwealth and amounts wagered on races in this Commonwealth.

 (2) A licensee shall contribute to the horsemen's purse account in accordance with section 9331(d) of the act (relating to pari-mutuel wagering at nonprimary locations) as directed by the Commission.

 (3) A licensee shall not commingle account funds with other funds.

 (4) A licensee shall provide quarterly financial statements to the Commission for the first calendar year of operation if the licensee does not have audited financial statements for the last 3 years as referenced in section 9353(a)(4) of the act (relating to license application procedures).

 (5) A licensee shall use and communicate pari-mutuel wagers to a totalisator licensed by the Commission.

 (6) A licensee shall operate and communicate with the totalisator in a way as not to provide or facilitate a wagering advantage based on access to information and processing of wagers by account holders relative to individuals who wager at licensed racing entities or simulcast facilities.

 (7) All personnel processing wagers made by residents of this Commonwealth shall be licensed by the Commission.

 (8) Accounts shall only be accepted in the name of an individual and shall not be transferable. Only individuals who have established accounts with a licensee may wager through a licensee.

 (9) Each account holder shall provide personal information as the licensee and the Commission require, including all of the following:

 (i) Name.

 (ii) Principal residence address.

 (iii) Telephone number.

 (iv) Social Security number.

 (v) Date of birth.

 (vi) Other information necessary for account administration.

 (10) The information supplied by the account holder shall be verified by the licensee using means acceptable to the Commission.

 (11) The licensee shall provide each account holder a secure personal identification code and password to be used by the account holder to confirm the validity of every account transaction.

 (12) An employee or agent of the licensee shall not disclose any confidential information except as follows:

 (i) To the Commission.

 (ii) To the account holder as required by this chapter.

 (iii) To the licensee and its affiliates.

 (iv) To the licensed racing entity as required by the agreement between the licensee and the licensed racing entity.

 (v) As otherwise required by law.

 (13) The licensee shall provide each account holder a copy of account holder rules and the terms of agreement and other information and materials that are pertinent to the operation of the account.

 (14) The licensee may refuse to establish an account if it is found that any of the information supplied is false or incomplete or for any other reason the licensee deems sufficient.

 (15) Each account shall be administered in accordance with the account holder rules and the terms of agreement provided to account holders, including:

 (i) Placing of wagers.

 (ii) Deposits to accounts.

 (iii) Credits to accounts.

 (iv) Debits to accounts.

 (v) Refunds to accounts.

 (vi) Withdrawals from accounts.

 (vii) Minimum deposit requirements.

 (viii) Fees per wager.

 (ix) Rebates.

 (16) Each licensee shall have protocols in place and shall publicize to its account holders when the wagers are excluded from a host racetrack's wagering pool. These protocols shall include an immediate electronic mail message to affected account holders and immediate posting on the licensee's publicly accessible Internet web site.

 (17) A licensee shall maintain complete records of the application and the opening of an account for the life of the account plus 2 additional years. A licensee shall also maintain complete records of the closing of an account for 2 years after closing. These records shall be provided to the Commission upon request.

 (18) A licensee shall maintain complete records of all transactions, including deposits, credits, debits, refunds, withdrawals, fees, wagers, rebates and earnings for 2 years. These records shall be provided to the Commission upon request.

 (19) All wagering conversations, transactions or other wagering communications, verbal or electronic, shall be recorded by means of the appropriate electronic media and the tapes or other records of the communications shall be kept by the licensee for a period of 2 years. These tapes and other records shall be made available to the Commission upon request.

 (20) The recording of the confirmation of the transaction, as reflected in the voice or other data recording, shall be deemed to be the actual wager regardless of what was recorded by the totalisator.

 (21) A licensee shall not accept wagers if its recording system is not operable.

 (22) The Commission may monitor the equipment and staff and review the records of a licensee and any of the transactions conducted by the licensee with regards to wagers made by residents of this Commonwealth.

 (23) A licensee may suspend or close any account for violation of the account holder rules and the terms of agreement or any other reason it deems sufficient, if the licensee returns to the account holder all money then on deposit within 7 calendar days.

§ 183.9. Penalties and enforcement.

 All of the following apply:

 (1) The Commission shall have all of the rights, powers and remedies necessary to carry out this chapter and to ensure compliance with this chapter, including revocation, suspension or modification of a license and the imposition of fines under section 9325 of the act (relating to power of commission to impose fines).

 (2) With respect to an individual or entity that offers pari-mutuel wagering to residents of this Commonwealth without a license issued by the Commission, the Commission may take the measures deemed necessary, including referral to the appropriate regulatory and law enforcement authorities for civil action or criminal penalties.

 (3) Upon the finding of a violation by a secondary pari-mutuel organization of this chapter or of a Commission regulation or order or upon the finding of unlicensed electronic or advanced deposit account wagering by an individual or entity, the Commission may impose a fine as authorized under section 9325 of the act.

CHAPTER 185. OCCUPATIONAL LICENSES—TEMPORARY REGULATIONS

Sec.

185.1.	General provisions.
185.2.	Conduct of licensee.
185.3.	License is a privilege.
185.4.	Term of occupational license.
185.5.	Occupational license fees.
185.6.	Age requirement.
185.7.	Protection of horses.
185.8.	License application process.
185.9.	Fingerprinting and licensing reciprocity.
185.10.	License renewal.
185.11.	Licensing action.
185.12.	Grounds for refusal, denial, suspension or revocation of license.
185.13.	License restrictions, limitations and conditions.
185.14.	Employer responsibility.
185.15.	Workers' compensation insurance required.
185.16.	Misuse of license.
185.17.	Relationships with suspended or inactive persons prohibited.
185.18.	Association with undesirables.
185.19.	Wagering misconduct.
185.20.	Spousal disqualification.

§ 185.1. General provisions.

 (a) Every person participating in pari-mutuel racing activities within this Commonwealth must be licensed by the Commission in accordance with the provisions set forth in section 9323 of the act (relating to occupational licenses for individuals) and with the Commission's specific regulations relating to the applicant's racing occupation.

 (b) In addition to the provisions set forth in Chapters 203 and 303 (relating to licensing, duties and responsibilities of Standardbred licensees; and licensing, duties and responsibilities of Thoroughbred licensees) of the Commission's regulations, the filing of an application for a particular occupational license shall authorize the Commission to investigate criminal records and employment records, to conduct a thorough background investigation and to conduct interviews to determine if the applicant's character, experience and qualifications are consistent with the best interest of racing and the general public.

 (c) By acceptance of a license, a licensee consents to search and inspection by the Commission or its agents of the licensee's person, personal property and areas under the licensee's possession, care or control. The licensee explicitly consents to the seizure of any prohibited medication, drugs, paraphernalia or other illegal devices or contraband in accordance with State and Federal law and with the applicable provisions of the act.

 (d) Every license is granted upon the express condition that the licensee shall accept, observe and abide by the rules and regulations of the Commission. Licensees are presumed to have knowledge of the rules of racing and are charged with the responsibility, duty and obligation to report any apparent or actual violation of the rules of racing to the Commission.

 (e) As a condition of licensure, every licensee shall fully cooperate with any ongoing administrative Commission action, investigation or background review and shall comply with a properly issued Commission subpoena for the attendance of the licensee at an administrative hearing or for the production of any relevant reports, papers, documents and correspondence related to an investigation. Refusal to cooperate with a properly issued subpoena shall subject the licensee to a license suspension or revocation.

§ 185.2. Conduct of licensee.

 A licensee shall not, alone or in concert with another person, engage in inappropriate, illegal or unethical conduct which violates the Commission's rules and regulations of racing, is inconsistent with the best interests and integrity of racing or otherwise undermines the general public's faith, public perception and confidence in the racing industry.

§ 185.3. License is a privilege.

 While all licensees shall be afforded due process rights, in accordance with section 9323(a) of the act (relating to occupational licenses for individuals), a license is a privilege and shall not be deemed a property right.

§ 185.4. Term of occupational license.

 Licenses, unless revoked for cause, shall be issued for the period of 3 years. To facilitate a convenient and orderly licensing process, the Commission may establish a staggered expiration period for occupational licenses.

§ 185.5. Occupational license fees.

 In accordance with section 9312 of the act (relating to additional powers of commission), the Commission established and published a comprehensive fee schedule for all occupational licenses. Every 2 years the Commission shall review the fee schedule to determine whether to increase any fee, charge or cost associated with occupational licenses. The Commission by order, notice to the regulated community and publication in the Pennsylvania Bulletin, shall amend the fee schedule as deemed necessary.

§ 185.6. Age requirement.

 All applicants for licensing shall be at least 18 years of age, unless otherwise specified in these rules and regulations or by specific exemption by the Commission. An applicant seeking an age exemption must file a written request with the Commission with supporting documentation to justify an age-related exemption. The decision not to grant an age-related exemption may not be appealed. An applicant may be required to submit a certified copy of the applicant's birth certificate or other proof of age and identification.

§ 185.7. Protection of horses.

 (a) Each person licensed by the Commission shall do all that is reasonable and within the licensee's power and scope of duty to guard against and prevent any horse entered or to be entered in an official workout or race, from coming into contact with or be administrated any drug, medication or other foreign substance, including a permissible medication in excess of the maximum allowable level.

 (b) No licensee or other person under the jurisdiction of the Commission shall subject or permit any animal under the licensee's care, custody, control or supervision to be subjected to or to incur any form of cruelty, mistreatment, neglect, abuse or abandonment. No licensee shall injure, maim, kill, administer a noxious substance to or otherwise deprive any animal of necessary veterinary care, sustenance or shelter.

 (c) In addition to any licensing action or penalty imposed by the Commission for the previous misconduct, the Commission shall immediately notify and refer the cruelty matter to the appropriate authorities for possible criminal prosecution.

§ 185.8. License application process.

 (a) An applicant shall submit the appropriate occupational license application and shall agree to be fingerprinted, as may be required by the Commission and provide complete, accurate and truthful disclosure on the application. Based upon the submission of the application, the Commission or its staff shall conduct the appropriate investigation of all criminal and employment records.

 (b) Applicants for any form of license or registration issuance receipt or renewal shall be required to complete the authorization for release of confidential or background information as may be required by the Commission. Refusal to complete the authorization shall be an automatic bar to license or registration issuance or renewal.

 (c) The Commission shall require an applicant under this chapter to submit to fingerprinting for a report of Federal criminal history record information.

 (1) The applicant must submit a full set of fingerprints to the Pennsylvania State Police or the Pennsylvania State Police's authorized agent for the purpose of a record check. The Pennsylvania State Police or the Pennsylvania State Police's authorized agent must then submit the fingerprints to the Federal Bureau of Investigation for the purpose of verifying the identity of the applicant and obtaining a current record of any criminal arrests and convictions.

 (2) The Commission shall consider information obtained under this paragraph for the purpose of screening applicants for fitness and suitability for licensure in accordance with the provisions of the act or these regulations.

 (3) National criminal history record information received by the Commission shall be handled and maintained in accordance with Federal Bureau of Investigation policy.

 (4) Fingerprints obtained under this paragraph may be maintained by the Commission and Pennsylvania State Police to enforce this chapter and for general law enforcement purposes.

 (5) In addition to any other fee or cost assessed by the Commission, an applicant must pay for the cost of the fingerprint process.

 (6) The Commission may exempt applicants for positions not related to the care or training of horses, racing, wagering, security or the management of a licensed racing entity, from the provisions of this chapter.

§ 185.9. Fingerprinting and licensing reciprocity.

 (a) The Commission may establish a modified or abbreviated application process and procedures for licensees who have been previously licensed and in good standing with another racing jurisdiction. In utilizing the reciprocal license process, the Commission may determine that a Federal Bureau of Investigation fingerprint check conducted within the previous 36 months or another period as approved by the Commission is adequate for its criminal background investigation. The Commission, for the reciprocal license process, require an abbreviated application form or affidavit, as may be required by the Commission and pay the required applicable fees prior to participating in racing in this Commonwealth.

 (b) An applicant must be in good standing in each jurisdiction where they hold or have held a racing license.

 (c) The applicant shall provide this jurisdiction with proof of licensure from another jurisdiction to which fingerprints were submitted.

 (d) Provided the previous requirements have been met, the Commission may issue a valid occupational license in this jurisdiction.

§ 185.10. License renewal.

 (a) All licenses shall be subject to renewal every 3 years upon application and review as determined by the Commission or its designee. Occupational license renewals shall not be considered automatic.

 (b) The application for renewal shall be submitted at least 60 days prior to expiration of the license term and shall include:

 (1) an update of the information contained in the initial application and any prior renewal application, if applicable;

 (2) payment of the renewal fee required by the Commission.

 (c) A license for which a completed renewal application and fee, if required, has been received by the Commission shall continue in effect unless and until the Commission sends written notification to the licensee that the Commission has denied the renewal of the license.

 (d) Nothing in this chapter shall be construed to relieve a licensee of the affirmative duty to notify the Commission of any changes relating to the status of its license or to any other information contained in the application materials on file with the Commission.

§ 185.11. Licensing action.

 (a) Withdrawal of application: The Commission, the Bureau Directors, the Director of Licensing or any other Commission designee may, instead of issuing a formal application denial, grant the applicant permission to withdraw the application without prejudice.

 (b) License approval: The Commission may grant a license if, after a thorough background investigation, it finds that the experience, character and general fitness of the applicant are that the participation of the person in horse racing meets and pari-mutuel racing activities in this Commonwealth will be consistent with the public interest and with the best interests of racing in conformity with the purpose of the act.

 (c) License denial: In addition to the provisions of section 9323 of the act (relating to occupational licenses for individuals), the Commission may formally deny an application in accordance with these rules and regulations. The applicant shall be notified of the reasons for the denial in writing. The license denial shall also be issued as a formal ruling which may be reported to the Association of Racing Commissioners International or the USTA or to any other racing jurisdiction.

§ 185.12. Grounds for refusal, denial, suspension or revocation of license.

 (a) In accordance with the provisions of section 9323(g) of the act (relating to occupational licenses for individuals) the following shall apply:

 (1) The Commission may not issue a license under this section to an individual who has been convicted in a jurisdiction of a felony offense, a misdemeanor gambling offense or a fraud or misrepresentation in connection with horse racing or breeding, unless 15 years has passed from the date of conviction of the offense.

 (2) Following expiration of a period applicable to an applicant under paragraph (1), in determining whether to issue a license to an applicant, the Commission shall consider the following factors:

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

 (ii) The nature and seriousness of the offense or conduct.

 (iii) The circumstances under which the offense or conduct occurred.

 (iv) The age of the applicant when the offense or conduct occurred.

 (v) Whether the offense or conduct was an isolated or a repeated incident.

 (vi) Any evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendations of persons who have substantial contact with the applicant.

 (b) The Commission may deny an application for a license or suspend, revoke or refuse to renew a license issued under this section if it determines that the applicant or licensee meets any of the following:

 (1) Has been convicted of any violation or attempts to violate any law, rule or regulation of horse racing in any jurisdiction.

 (2) Has been convicted of an offense under 18 Pa.C.S. Subchapter B, §§ 5531—5561 (relating to cruelty to animals) (as amended).

 (3) Has violated a rule, regulation or order of the Commission.

 (4) Has been convicted in any jurisdiction of an offense related to fixing or rigging horse races including 18 Pa.C.S. § 4109 (relating to rigging publicly exhibited contest) or § 7102 (relating to administering drugs to race horses) or any similar crime in any other jurisdiction, unless the conviction has been overturned on appeal under the laws of the jurisdiction of the original finding or a pardon has been issued.

 (5) Has not demonstrated by clear and convincing evidence that the applicant or licensee:

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

 (ii) Is a person whose prior activities, criminal record, if any, reputation, habits and associations:

 (A) do not pose a threat to the public interest or the effective regulation and control of horse racing.

 (B) do not create or enhance the danger of unsuitable, unfair or illegal practices, methods and activities in the conduct of horse racing or the carrying on of the business and financial arrangements incidental to the conduct of horse racing.

§ 185.13. License restrictions, limitations and conditions.

 (a) Based upon the Commission's background investigation of an applicant or licensee, the Commission may impose the following restrictions, limitations or conditions upon the licensee and the licensee's racing activities:

 (1) grant a temporary license for 4 months within a 12-month period pending a final determination. A temporary license shall expire at the end of 4 months with no expectation or guarantee of renewal.

 (2) grant a license upon the terms and conditions as deemed necessary and appropriate by the Commission or its designee to protect the integrity and best interest of the racing industry.

 (b) A licensee having been granted a conditional license as set forth in subsection (a) shall abide by all the terms and conditions set forth in the license. As agreed upon by the licensee, a violation of the terms and conditions set forth in the conditional license shall deemed separate grounds for suspension or revocation of the occupational license.

§ 185.14. Employer responsibility.

 The employment or harboring of any unlicensed person at facilities under the jurisdiction of the Commission is prohibited. Every licensed racing entity, owner or trainer shall report, in writing, the discharge of a licensed employee to the Commission or its designee, including the person's name, occupation and reason for the discharge.

§ 185.15. Workers' compensation insurance required.

 (a) All licensed employers shall carry workers' compensation insurance covering their employees as required by the laws of the Commonwealth. Owners and trainers shall provide a list of employees on the badge list and shall produce evidence of coverage on an ongoing basis.

 (b) No licensed owner or trainer shall grant, give or provide an ownership interest in a horse to their employee to avoid the worker's compensation insurance requirement. An owner, trainer and the owner or trainer's employee shall file an affidavit and provide the documentation, as required by the Commission, to evidencing a true and proper ownership interest of the horse by the employee.

 (c) Notwithstanding the language in subsections (a) and (b), licensed racing entities may establish their own guidelines, requirements and procedures governing worker's compensation insurance coverage.

§ 185.16. Misuse of license.

 A person may not exercise or attempt to exercise the rights of an occupational license not otherwise properly authorized by the Commission through the appropriate licensing procedures set forth in this chapter. The Commission will exercise the power to regulate the conduct of persons holding licenses or who are participating in racing by the use of rights of a licensee.

§ 185.17. Relationships with suspended or inactive persons prohibited.

 (a) A person shall not train a horse or practice veterinary medicine for the benefit, credit, reputation, or satisfaction of an inactive or suspended person. This prohibition shall not prevent the partners in a veterinary practice from providing services to horses so long as the inactive person does not receive a pecuniary benefit from those services.

 (b) An employee or associated person of a suspended or inactive person shall not:

 (1) Assume the suspended person's responsibilities at a location under the jurisdiction of the Commission;

 (2) Complete an entry form for a race on behalf of or for the suspended or inactive person or an owner or customer for whom the suspended or inactive person has worked; or

 (3) Pay or advance an entry fee on behalf of the suspended or inactive person or owner or customer for whom the inactive person has worked.

 (c) An employee or associated person who assumes the responsibility for the care, custody or control of a horse owned (fully or partially), leased or trained by a suspended or inactive person shall not:

 (1) Be paid a salary directly or indirectly by or on behalf of the inactive person;

 (2) Receive a bonus or any other form of compensation in cash, property or other remuneration or consideration from the inactive person;

 (3) Make a payment or give remuneration or other compensation or consideration to the suspended or inactive person; or

 (4) Train or perform veterinarian work for the inactive person or an owner or customer of the inactive person at a location under the jurisdiction of the Authority.

 (d) A person who is responsible for the care, training or veterinarian services provided to a horse formerly under the care, training or veterinarian services of a suspended or inactive person shall:

 (1) Bill customers directly for any services rendered at or in connection with any race meeting;

 (2) Maintain a checking account totally separate from and independent of that of the suspended or inactive person to be used to pay expenses of and deposit income from an owner or client of the suspended inactive person;

 (3) Not use the services, directly or indirectly, of current employees of the suspended or inactive person; and

 (4) Pay bills related to the care, training, and racing of the horse from a separate and independent checking account. Copies of the invoices for these expenses shall be retained for not less than 6 months after the date of the reinstatement of the license of the inactive person or the expiration of the suspension of the inactive person's license.

§ 185.18. Association with undesirables.

 If a person under the jurisdiction of the Commission shall be approached with an offer, promise, request or a suggestion for a bribe or for an improper, corrupt or fraudulent act in relation to racing or that a race shall be conducted otherwise than fairly and in accordance with the rules of this Commission, it shall be the duty of the person to immediately report the matter to the Commission or one of its appointed representatives.

§ 185.19. Wagering misconduct.

 A licensee or employee of a licensed racing entity or its concessionaires may not knowingly, by false representation, attempt to cause another person to wager on a horse in a race to be run nor may he demand compensation as a reward for a racing prediction provided to a person or entity for wagering purposes. This does not apply to the vending of newspapers or to other publications approved by the Commission.

§ 185.20. Spousal disqualification.

 Disqualification of one spouse applies to the other only if it can be demonstrated that the horses owned or controlled by the disqualified spouse are also under the ownership or control of the spouse who has not been disqualified. The Commission shall determine the necessary information, documentation and evidence to demonstrate separate and independent ownership or control of the horse by the non-disqualified spouse.

CHAPTER 187. RACING VENDORS AND TOTALISATORS—TEMPORARY REGULATIONS

Sec.

187.1.	General provisions.
187.2.	License costs and fees.
187.3.	Application requirements.
187.4.	Review and approval.
187.5.	Good-faith cooperation.
187.6.	Waiver.
187.7.	Additional application information.
187.8.	Racing vendor or totalisator operations.
187.9.	Penalties and enforcement.

§ 187.1. General provisions.

 (a) As set forth in section 9351(a.1) of the act (relating to general license requirements), racing vendors and totalisator companies, irrespective of their physical location and operation, seeking to provide racing related services to licensed racing entities within this Commonwealth, must be properly licensed by the Commission in accordance with this chapter.

 (1) An incomplete application shall not be reviewed or considered for licensure.

 (2) A racing vendor or totalisator system may not begin operations until approved by the Commission or its designee.

 (b) In accordance with section 9351(b)(1) of the act, a racing vendor or totalisator license shall be renewed annually.

 (1) Racing vendor or totalisator licenses shall not be renewed automatically. The appropriate renewal application shall be submitted on or before 120 days before the expiration of the license term.

 (2) If the renewal application is approved by the Commission, the license renewal shall take effect January 1 thereafter.

§ 187.2. License costs and fees.

 (a) The applicant shall submit, along with its initial license application, the applicable license fees set forth in section 9352(3)(ii) of the act (relating to licensing costs and fees). The applicant shall also pay all costs incurred by the Commission in reviewing an application for an initial license, including any legal and investigative costs and the cost of other necessary outside professionals and consultants as set forth in the act.

 (1) Any portion of the payment not required to complete the investigation shall be refunded to the applicant as provided in the act.

 (3) To the extent additional costs will be necessary, the applicant shall reimburse the Commission in an amount reasonably requested by the Commission within 10 days of receipt of the request. Failure to submit an additional requested payment shall result in suspension of the processing of the license application and may result in denial of the license.

 (b) For purposes of a renewal license, a racing vendor or totalisator company shall submit a renewal application, along with the applicable renewal fee and costs as set forth in section 9352(4)(ii) for the review to the Commission.

§ 187.3. Application requirements.

 (a) The application for an initial or renewal license for a racing vendor or totalisator company shall be in the form and manner prescribed by the Commission in accordance with the provisions of the act and this chapter. The Commission may deny a license to an applicant that provides false or misleading information or omits material information from the application. The SPMO application shall include all of the following:

 (1) The applicant's legal name.

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

 (3) The name, address and date of birth of each principal with a 5% or greater share of ownership or beneficial interest in the applicant.

 (4) Audited financial statements for the last 3 years or, if the applicant does not have audited financial statements, financial and other pertinent information as required by the Commission to determine that the applicant is financially capable of operating as a going concern and protecting accounts.

 (5) A detailed plan of how the applicable racing, wagering or other system to be licensed will operate. The Commission may require changes in the proposed plan of operations as a condition of granting a license. There shall not be subsequent material changes in the plan of operations unless ordered by the Commission or until approved by the Commission after receiving a written request.

 (6) A list of all personnel assigned to work in this Commonwealth including processing wagers on races made by residents of this Commonwealth. This list shall be kept current and be provided to the Commission upon request.

 (7) Copies of all documents required under this subsection by the Commission.

 (8) Certification of compliance with totalisator standards and licensing requirements adopted by the Commission.

 (9) A type II SAS 70 report or other independent report in a form acceptable to the Commission completed within the preceding 12 months, to assure adequate financial controls are in place in the secondary pari-mutuel organization.

 (10) An agreement to allow the Commission, if requested, to inspect and monitor each facility used by the racing vendor or totalisator in the performance of its racing related duties within this Commonwealth.

 (11) Certification of the use of a pari-mutuel system which meets all requirements for a pari-mutuel system utilized by a licensed racing entity in this Commonwealth.

 (12) Written evidence of tax compliance as set forth in section 9361 of the act (relating to tax compliance requirement).

§ 187.4. Review and approval.

 (a) The Commission shall determine the suitability, fitness and experience of a racing vendor or totalisator company and their key employees, consistent with the public interest, convenience and necessity and the best interests of racing generally.

 (b) As set forth in section 9353(b) of the act (relating to license application procedures), the Commission may also consider the following information in making a determination for a racing vendor or totalisator initial license or renewal application:

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

 (i) Whether the applicant or its principals are unsuitable.

 (ii) Whether the applicant or its principals have been a party to litigation over business practices, disciplinary actions over a business license or refusal to renew a license.

 (iii) Whether the applicant or its principals have been a party to proceedings in which unfair labor practices, discrimination or violation of government regulations pertaining to racing or gaming laws was an issue or bankruptcy proceedings.

 (iv) Whether the applicant or its principals have failed to satisfy judgments, orders or decrees.

 (v) Whether the applicant or its principals have been delinquent in filing tax reports or remitting taxes.

 (2) The quality of physical facilities and equipment.

 (3) The financial ability of the applicant to conduct wagering.

 (4) The protections provided to safeguard accounts, including a certification from the licensee's chief financial officer that account funds will not be commingled with other funds as required under this chapter.

 (5) The management ability of the applicant and its principals.

 (6) Compliance of the applicant with applicable statutes, charters, ordinances and administrative regulations.

 (7) The efforts of the applicant to promote, develop and improve the horse racing industry in this Commonwealth.

 (8) The efforts of the applicant to safeguard and promote the integrity of pari-mutuel wagering in this Commonwealth.

 (9) The economic impact of the applicant upon the Commonwealth.

 (10) The racing vendor or totalisator organizations' owners and sources of funds must have sufficient financial means to participate in the applicable pari-mutuel racing related activities, including sufficient assets and means to pay industry-related debts and obligations and to fund the operations of the entity.

§ 187.5. Good-faith cooperation.

 The applicant or licensed racing vendors and totalisators must be fully cooperative and act in good faith with all disclosure and other duties involved in a due diligence investigation, voluntarily submit to regulatory and investigating body oversight, permit inspection of each business record upon request by a regulatory authority or investigating body, promptly honor regulatory or investigating body requests for wagering patterns or other information and, after reasonable notice, permit full access to each facility and property by a regulatory authority or investigating body.

§ 187.6. Waiver.

 A due diligence investigation may rely on an investigation and oversight conducted by a Commission-approved entity or other gaming regulator.

§ 187.7. Additional application information.

 The Commission may request additional information from an applicant if the additional information would assist the Commission in deciding whether to issue or renew a license, including all of the following:

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

 (2) A list of each contract between the applicant and a third party related to operations. The Commission may review the contracts at any time upon request.

§ 187.8. Racing vendor or totalisator operations.

 Before doing business in this Commonwealth may also require all of the following from either a racing vendor or totalisator licensee:

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

 (2) Submit a copy of each document required to be filed with the Department of Revenue and each document related to an audit or investigation by any Federal, State or local regulatory agency to the Commission.

 (3) Remit to the Commission a copy of each document required to be filed with any Federal, State or local regulatory agency.

§ 187.9. Penalties and enforcement.

 The Commission shall have all rights, powers and remedies necessary to carry out the provisions of this chapter and to ensure the licensees' compliance with the act, including revocation, suspension or modification of a license and the imposition of fines under section 9325 of the act (relating to power of commission to impose fines).

CHAPTER 189. NONPRIMARY LOCATIONS—
TEMPORARY REGULATIONS

Sec.

189.1.	Definitions.
189.2.	Applicability.
189.3.	General provisions.

RELOCATION OR REOPENING OF A NONPRIMARY LOCATION

189.11.	Relocation or reopen petition and fees.
189.12.	Filing of a petition; documentation required.
189.13.	Review of petition.
189.14.	Written public comment.
189.15.	Public comment hearing.
189.16.	Intervention in a nonprimary location petition.
189.17.	Standards for approval.

REQUIREMENTS FOR THE NONPRIMARY LOCATION

189.21.	Concessionaires or vendors.
189.22.	Display of races and race related information at a nonprimary location.
189.23.	Wagering requirements.
189.24.	Location mutuel manager.

OPERATION OF A NONPRIMARY LOCATION

189.31.	Maintenance of a nonprimary location facility.
189.32.	Impermissible conduct.
189.33.	Power of eviction or ejection.
189.34.	Inspection authorization.
189.35.	Nondiscrimination.
189.36.	Admission of minors.

§ 189.1. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

 Applicant—A duly licensed racing entity seeking to relocate an existing operational nonprimary location or reopening of a previously operational nonprimary location with the Commission.

 Architect—A person licensed to practice the profession of architecture.

 Center of the racetrack—The point located at the center of the area circumscribed by the inside rail of the racetrack.

 Charitable institution—A building occupied in whole or in part by an organization dedicated to the relief of a certain class of persons either by financial assistance, education or care on a not-for-profit basis and exempt from taxation under the Internal Revenue Code (26 U.S.C.A. §§ 1—7872).

 Church—A building occupied in whole or in part by an organization engaged in religious worship or instruction.

 Engineer—A person licensed to practice the profession of engineering.

 Facility—The buildings or internal areas of buildings under the lease, possession, ownership or control by a licensed racing entity.

 Handle—The total amount of money wagered.

 Hospital—A building used in whole or in part for the extended, overnight, medical care of ten or more sick, wounded, aged or infirm persons.

 Local resident—A person whose residence is within 10 miles of a proposed nonprimary location.

 Nonprimary location—A facility in which pari-mutuel wagering is conducted by a licensed racing entity in accordance with this chapter other than the racetrack where live racing is conducted. Commonly known as off-track wagering (OTW) facility.

 Public park or playground—Land owned by the Commonwealth or a county, township, municipality, borough, school district or other governmental unit within this Commonwealth, open to the public for recreational purposes.

 Race related information—Current odds, program changes, order of finish and other information typically displayed to patrons at the racetrack on the infield tote board, with respect to a race upon which patrons of a nonprimary location may wager.

 School—A building used during the majority of the calendar year, in whole or in part, for educational or instructional purposes on a not-for-profit basis by an organization accredited by the Department of Education.

 Relocation or Reopen Petition—shall mean a petition filed with the Commission by a licensed racing entity seeking to relocate an existing operational nonprimary location or to reopen a previously licensed and operational nonprimary location.

§ 189.2. Applicability.

 (a) In accordance with section 9331(a) of the act (relating to pari-mutuel wagering at nonprimary locations), the Commission may approve a licensed racing entity to continue to operate a nonprimary location where it has previously conduct pari-mutuel wagering on horse races conducted by the licensed racing entity. This chapter applies to the relocation of existing operational nonprimary locations or to the reopening of a previously operational nonprimary location operated by a licensed racing entity.

 (b) The chapter shall not apply to a petition by the licensed racing entity for the reconstruction, refurbishment or realignment of the physical facility, layout or floor space of an existing operational nonprimary location.

§ 189.3. General provisions.

 (a) Only a licensed racing entity may apply for the relocation or reopening of a nonprimary location.

 (b) A duly licensed racing entity corporation may seek approval by the Commission for the relocation of an existing operational nonprimary location or for the re-opening of a previously operational nonprimary location by submitting a Relocation or Reopen Petition with the Commission.

RELOCATION OR REOPENING OF A NONPRIMARY LOCATION

§ 189.11. Relocation or reopen petition and fees.

 (a) A relocation or reopen petition, whichever is applicable, shall be in the form prescribed by the Commission and shall be accompanied by the necessary documents, information, architectural renderings, exhibits and any other information requested by the Commission.

 (b) The Commission shall establish, adopt and publish the applicable relocation or reopen fee which must accompany the specific petition sought by the licensed racing entity. The licensed racing entity shall reimburse the Commission for any investigative, legal or administrative costs and fees associated with the review and approval of the petition.

§ 189.12. Filing of a petition; documentation required.

 (a) A petition and the documentation required shall be submitted as follows:

 (1) Part I requires the submission of the following information, exhibits and documentation:

 (i) The address of the location or physical location.

 (ii) The name, address and telephone number of the owner of the real estate upon which the location will be situated.

 (iii) A copy of the lease, purchase option or purchase agreement for the location.

 (iv) The zoning of the location.

 (v) A statement indicating whether the location is situated within 300 feet of a church, hospital, charitable institution, school, public park or playground.

 (vi) A pro forma financial statement projecting attendance, handle and revenue at the location.

 (vii) A statement of the projected cost of operation of the location.

 (viii) A statement of the sources of funds used to construct the location including a copy of the loan commitment letter, loan documents or other documents setting forth the terms relating to the financing of the location and a certification that the licensed corporation's State and local tax obligations are not in arrears.

 (ix) A statement of the projected revenue and taxes to be paid to the State and local government.

 (x) The anticipated impact on attendance, handle and purse structure at licensed facilities conducting live racing in this Commonwealth.

 (xi) The areas from which the applicant expects to attract patrons to the location.

 (xii) The population of the area within 35 air miles to the location.

 (xiii) The number and types of full-time and part-time jobs to be created at the location.

 (xiv) The number of jobs at the location to be filled by local residents.

 (xv) The number and types of jobs to be created by the construction or renovation of the location.

 (xvi) The distance between the location and racetracks conducting live racing in this Commonwealth.

 (xvii) The owner and description of other businesses or uses to be conducted at the location.

 (2) Part II requires the submission of the following information, exhibits and documentation:

 (i) The number of floors, total square footage and seating capacity of the facility.

 (ii) A description of the dining accommodations and concession areas to be contained in the facility, including the types of food and beverages to be available, the seating capacity and a description of the kitchen areas.

 (iii) The number and location of fire escapes and emergency exits at the facility.

 (iv) The number of rest rooms to be contained in the facility.

 (v) A description of the general demeanor of the facility, including its decor and lighting, the type of seating to be provided and the areas of the facility where patrons can handicap races.

 (vi) A description of the exterior and interior of the facility.

 (vii) The architectural or engineering drawings of the physical location or internal facility.

 (viii) A description of the heating, air conditioning, smoke removal and climate control equipment; and smoke and fire detectors to be used in the facility.

 (ix) The provisions made to assure that the facility is accessible to the physically handicapped.

 (x) A description of the parking areas to be provided at the location, including the name, address and telephone number of the owner of the parking facilities; a copy of lease agreements for parking; the number of parking spaces to be provided; the charge to be imposed for parking; and a description of traffic control to be provided.

 (xi) A summary of any contracts relating to, and a complete description of, the pari-mutuel or totalisator equipment to be used in the facility and a statement describing the compatibility of that equipment with the equipment being used at the primary racetrack of the licensed corporation and the equipment in use at the other primary racetracks which will be transmitting their races to the facility. Copies of the contracts may be requested by the Commission.

 (xii) A summary of contracts relating to, and a description of, the equipment to be used to include money wagered in common pari-mutuel pools, including the number of betting windows and stand-alone terminals to be provided. Copies of the contracts may be requested by the Commission.

 (xiii) A summary of contracts relating to, and a description of, the equipment to be used for receiving transmissions of races and race related information. Copies of the contracts may be requested by the Commission.

 (xiv) The name, address and telephone number of persons supplying equipment to the location.

 (xv) A description of the procedures to be used to resolve patron complaints at the location.

 (3) Part III requires the submission of the following information, exhibits and documentation:

 (i) The plan the applicant intends to institute to recruit, train and upgrade employees on an equal opportunity basis.

 (ii) Copies of contracts for the provision of goods and services to the location, including a notation of which contracts are with minority or female-owned businesses.

 (iii) The name, address and telephone number of the location mutuel manager and whether that person is the holder of a license issued by the Commission.

 (iv) The name, address and telephone number of the location director of security and whether that person is the holder of a license issued by the Commission.

 (v) The name, address and telephone number of the general manager of the location and whether that person is the holder of a license issued by the Commission.

 (vi) The names of the vendors and concessionaires providing goods or services, or both, to the location and whether the vendors or concessionaires hold a license issued by the Commission.

 (vii) A description of the security plan for the location and a copy of the contracts relating to security at the location.

 (viii) A copy of insurance policies applicable to the location.

 (ix) A statement indicating whether an application has been made to the Liquor Control Board for a license or the transference of a license, permitting the sale or consumption of alcoholic beverages at the location and action taken on that application.

 (x) A statement indicating whether the applicant has entered into an agreement for the simulcasting of races to the location.

 (xi) The applicant's strategy for preserving the integrity of live racing in this Commonwealth.

 (xii) A copy of building, fire, occupancy, health and sanitation or other permits required by the Commonwealth or a county, township or municipality in which the location is situated.

 (b) The Commission and its staff shall make an initial assessment of the specific petition to determine if it is complete, accurate and in accordance with the previous provisions. An incomplete petition or if the appropriate fee is not included with the petition, shall not be reviewed or considered by the Commission.

 (c) The Commission may employ the services of architects, engineers, accountants or other specialists to assist in the evaluation of a petition or to inspect work performed at a nonprimary location.

§ 189.13. Review of petition.

 (a) Prior to granting approval of a petition for the relocation of an existing operational nonprimary location or the reopening of a previously operational nonprimary location by the licensed racing entity, the Commission, will conduct its due diligence and review of the proposed location and facility. To further its review, the Commission may:

 (1) Require an oral presentation by the Petitioner as determined by the Commission;

 (2) Receive and utilize documents, transcripts and information from other racing, gaming or zoning regulatory entities, in or outside of this Commonwealth;

 (3) Seek written public comments from interested persons from the county in which the proposed facility will be located, as set forth in § 189.14 (relating to written public comment);

 (4) Conduct a public comment hearing, if necessary, in accordance with the provisions set forth in § 189.15 (relating to public comment hearing); or

 (5) Adopt any other procedure deemed necessary and appropriate to assist it in the review of the proposed facility.

§ 189.14. Written public comment.

 (a) If the Commission determines, in its sole discretion, the need for written public comment relating to the relocation of an existing nonprimary facility or the re-opening of a previously operational nonprimary location, the Commission may utilize the following procedures:

 (1) The Commission shall provide notice of the licensed racing entity's submitted petition and location at its monthly public meeting immediately following receipt of the petition or it may publish the notification of the licensed racing entity's petition in the Pennsylvania Bulletin.

 (2) There shall be a 30-day period following notice as set forth in subsection (1) during which written comments may be submitted by interested persons.

 (3) Written public comment shall be limited to verifiable residents of the county in which the proposed facility will be relocated or reopened.

 (4) Written comments submitted during the 30-day comment period will be retained and incorporated into the record to be reviewed and considered by the Commission.

 (b) The purpose of the written public comments is to assist the Commission in assessing the impact the relocation of an existing nonprimary facility or the reopening of a previously operational nonprimary location may have on the local community.

§ 189.15. Public comment hearing.

 (a) The Commission will provide an opportunity for the licensed racing entity or any other interested agency, person or group of persons within the county where the proposed facility will be located to submit a written request for a public comment hearing regarding the nonprimary location petition.

 (b) The written request seeking a public comment hearing must:

 (1) be filed within the 30-day time period set forth in § 189.14 (relating to written public comment);

 (2) clearly and concisely identify the specific interest of the person filing the request, including name, address, telephone number, of the requesting person; and

 (3) set forth the specific reasons why a hearing is warranted.

 (c) The Commission shall review the written request for a public comment hearing to determine whether the public comment hearing would assist it in assessing and evaluating the proposed location and whether the petition is consistent with the best interests of racing and the standards for approval set forth in these regulations.

 (d) If the Commission determines, in its sole discretion, the need for a public comment hearing relating to the licensed racing entity's petition, the Commission shall:

 (1) Inform the requesting petitioner;

 (2) Publish notice of the proposed public comment hearing in the Pennsylvania Bulletin, post it on the Commission's web site, and if practicable, publish notice of the public comment hearing in a newspaper of general circulation for the county in which the proposed nonprimary facility will be located;

 (3) Identify and coordinate with the local municipality the proposed location and time for the public comment hearing;

 (4) Designate a Commissioner, assign a hearing officer or appoint another Commission designee to conduct the public meeting and receive public comments;

 (5) Develop and post on the Commission's web site the procedures that will be used to conduct the public comment hearings. At its discretion, the Commission may terminate, recess, reconvene and continue the public comment hearing.

§ 189.16. Intervention in a nonprimary location pe- tition.

 (a) This subsection pertains exclusively to intervention in a petition for the relocation of an existing nonprimary facility or the reopening of a previously operational nonprimary location under this section and is not applicable to other hearings before the Commission. The right to intervene in a hearing under this section is within the sole discretion of the Commission.

 (1) A person wishing to intervene in the matter before the Commission shall file a petition to intervene in accordance with this subsection.

 (2) A person may file a petition to intervene under this subsection if the person has an interest in the proceeding which is substantial, direct and immediate and if the interest is not adequately or otherwise represented in the matter.

 (3) Petitions to intervene in nonprimary location matters shall be filed within 30 days from the date of published notice by the Commission of the receipt of the nonprimary location petition.

 (4) Petitions to intervene must set out clearly and concisely the facts demonstrating the nature of the alleged right or interest of the petitioner, the grounds of the proposed intervention, and the position of the petitioner in the proceeding. The petitioner shall fully and completely advise the licensed racing entity and the Commission of the specific issues of fact or law to be raised or controverted and cite provisions or other authority relied upon.

 (5) The licensed racing entity seeking the relocation or reopening of the nonprimary location may file an Answer to a Petition to Intervene, and in default thereof, will be deemed to have waived any objection to the granting of the petition. If made, answers shall be filed within 10 days after the date the petition to intervene is filed with the Commission, unless for cause the Commission prescribes a different time. A complete copy of the Answer to the Petition to intervene shall be served on the Commission and the petitioner who seeks to intervene.

 (6) Except when the Commission determines that it is necessary to develop a comprehensive evidentiary record, the participation of a person granted the right to intervene in the nonprimary location matter will be limited to the presentation of evidence through the submission of written statements attested to under oath. The written statements shall be part of the evidentiary record.

 (b) This section supersedes any conflicting provisions contained in the Commission's administrative regulations relating to practice and procedure and 1 Pa. Code Part II (relating to General Rules of Administrative Practice and Procedure).

§ 189.17. Standards for approval.

 (a) Under section 9331 (relating to pari-mutuel wagering at nonprimary locations) of the act, the Commission will consider the following in determining whether to grant or deny approval of a petition:

 (1) Whether the proposed relocated or reopened facility contains or has access to amenities such as the restaurants and handicapping facilities required by the act.

 (2) Whether the facility will create jobs in the construction and service industries as well as continue to create jobs within the racing and wagering industry.

 (3) Whether the facility will have a positive, neutral or negative impact on the integrity of live racing, including its effect on the attendance, handle and purse structure of live racing.

 (4) The anticipated impact on the local community, including the potential for job creation on an equal opportunity basis and the effect on local businesses.

 (5) The quality of the physical facilities and services to be provided.

 (6) The public interest.

 (7) Whether the applicant plans to institute measures to ensure that employees are recruited and trained for positions on an equal opportunity basis and that contracting opportunities are open to all firms.

 (8) Information, documents or exhibits submitted as part of a petition.

 (b) No single factor will be paramount. In rendering a decision, the Commission will determine whether the proposed relocated or reopened nonprimary location is in the best interests of racing.

 (c) Approval of a relocated or reopened nonprimary location is granted upon the condition that the licensed racing entity accept and continue to observe the rules of the Commission. The approval of a nonprimary location does not prevent the Commission from ordering modification of the facility or operations at the nonprimary location if the Commission finds evidence of noncompliance with the act, this chapter or that the construction or reconstruction of the facility is not being performed as set forth in the approved petition.

 (d) Approval issued by the Commission will contain the following conditions:

 (1) The Commission, its agents or employees will have immediate and complete access to the areas where activity is being or will be conducted under the act or this part, as necessary to determine compliance with the act and this part, upon presentation of appropriate credentials and without advance notice or a search warrant.

 (2) Records and reports pertaining to activities conducted under the act or this part shall be produced for inspection upon demand by the Commission, its agents or employees.

REQUIREMENTS FOR THE NONPRIMARY LOCATION

§ 189.21. Concessionaires or vendors.

 (a) A person, firm, concessionaire or vendor which holds a concession, right or privilege to perform a service or sell an item at a nonprimary location operated by a licensed racing entity shall be licensed by the Commission.

 (b) The licensed racing entity, if requested by the Commission, shall provide a copy of an audited financial statement reflecting its operations at each nonprimary location.

§ 189.22. Display of races and race related information at a nonprimary location.

 (a) The following shall be offered to patrons at every nonprimary location:

 (1) Audio and video coverage of every race upon which patrons of the nonprimary location are permitted to wager, including coverage of the horses in the paddock and while scoring.

 (2) Video coverage of race related information for every race upon which patrons of the nonprimary location are permitted to wager.

 (b) A nonprimary location shall be equipped with a system permitting the reception of transmissions of races and race related information without interference or interception.

 (c) A licensed corporation operating a nonprimary location shall develop and implement a security system to protect the equipment being used to receive transmissions of races and race related information from tampering.

 (d) If the reception of the video coverage of a race is interrupted, the audio coverage of the race shall continue to be presented.

 (e) If the reception of the audio coverage off the race is interrupted, the video coverage of the race shall continue to be displayed.

 (f) If the reception of the audio and video coverage of a race is interrupted during the running of the race, wagering being conducted on future races at the nonprimary location shall cease until the transmissions are restored. If the interruption of audio or video coverage, or both, prevent the display of a race at the nonprimary location, a replay of the race shall be displayed at the nonprimary location as soon after the restoration of coverage as possible.

 (g) At least 30 minutes prior to the beginning of wagering at the nonprimary location, a test of the equipment used to receive and display races and race related information at the nonprimary location shall be conducted to ensure that the system is operating properly.

§ 189.23. Wagering requirements.

 (a) Wagering on races at a nonprimary location shall be conducted using the pari-mutuel system of wagering.

 (b) A nonprimary location shall be equipped with:

 (1) A communication system that permits communication among the pari-mutuel department of the nonprimary location and the pari-mutuel department and Judges of racetracks conducting races on which patrons of the nonprimary location may wager.

 (2) A system capable of ensuring that money wagered on a particular race is included in the pari-mutuel pool of the racetrack conducting the race.

 (3) A system capable of ensuring that pari-mutuel machines at the nonprimary location lock upon the ringing of the bell or upon the closing of wagering for any reason.

 (c) Pari-mutuel wagering on races shall be conducted using pari-mutuel tickets sold from machines approved by the Commission. No pari-mutuel machine will be approved unless it is compatible with the system required by subsection (b)(2).

 (d) The transmission of wagering data between the nonprimary location and the racetrack conducting a race upon which wagering is permitted shall be independent of the transmission of audio and video coverage of the race and race related information. The system shall be tested at least 30 minutes prior to the beginning of wagering at the nonprimary location.

 (e) Patrons at nonprimary locations shall be afforded the same wagering opportunities on a particular race as patrons at the racetrack. Patrons at the racetrack shall be afforded the same wagering opportunities on a particular race as patrons at nonprimary locations. Winning pari-mutuel tickets purchased at a facility within a racetrack enclosure shall be cashed at a facility within the racetrack enclosure.

 (f) Persons employed in the pari-mutuel department of a nonprimary location operated by a licensed corporation of the Commission shall be considered pari-mutuel employees of the licensed corporation for purposes of reports to the Commission and the Department of Revenue.

 (g) Reports of pari-mutuel wagering required by this part shall reflect the request information separately for each nonprimary location operated by the licensed corporation.

 (h) The stop betting command shall be noted by the ringing of the bell at the nonprimary location or other device as approved by the Commission.

 (i) A licensed corporation shall submit written notice of its intention to suspend or terminate operations at a nonprimary location at least 60 days prior to the suspension or termination. The 60-day notification period may be reduced by the Commission for good cause shown.

§ 189.24. Location mutuel manager.

 An individual shall be designated as a location Mutuel Manager at each nonprimary location who shall:

 (1) Oversee the pari-mutuel operations at the nonprimary location.

 (2) Receive communications from the Mutuel Manager of each racetrack conducting races upon which patrons of the nonprimary location may wager.

 (3) Oversee the operation of the equipment being used to include money wagered at the nonprimary location in the pari-mutuel pool at the racetrack conducting the race and suspend wagering at the nonprimary location if the money wagered is not being transmitted to the pari-mutuel pool at the racetrack conducting the race.

 (4) Be responsible for ensuring that laws and regulations governing pari-mutuel wagering are observed at the nonprimary location.

 (5) Be licensed by the Commission.

OPERATION OF A NONPRIMARY LOCATION

§ 189.31. Maintenance of a nonprimary location facility.

 (a) A licensed racing entity that relocates or reopens a nonprimary location shall:

 (1) maintain the grounds, premises, physical facility, internal or external, at the nonprimary location so as to be neat and clean, painted and in good repair, with special consideration for the comfort and safety of patrons, employees and other persons whose business requires their attendance;

 (2) maintain in good working order the equipment being used to transmit and receive audio and video signals, to display the audio and video signals and to include money wagered in common pari-mutuel pools.

 (b) Plans for renovations, rehabilitations or changes to be made to a nonprimary location after the beginning of operations shall first be approved by the Commission before being implemented.

§ 189.32. Impermissible conduct.

 (a) While at a nonprimary location, no person may:

 (1) Use improper, profane or indecent language to a racing official, licensee or Commission employee.

 (2) Disturb the peace or make himself obnoxious to others.

§ 189.33. Power of eviction or ejection.

 The licensed racing entity may exercise its statutory authority and common law rights to evict a patron from a nonprimary location if the facility is also located within a licensed gaming facility. If a patron is ejected from the floor of the nonprimary location for lawful reasons, the patron shall not be entitled to a hearing.

§ 189.34. Inspection authorization.

 (a) The Commission, its agents or employees will have access to, and require the production of, books and papers, documents and physical evidence pertinent to a matter being investigated under the act or this part.

 (b) At least annually, the Commission, its agents or employees will inspect the nonprimary location to determine whether the licensed racing entity is maintaining its nonprimary location in good condition and whether adequate provision for rehabilitation and capital improvements has been made.

 (c) Inspections of nonprimary locations shall be made during the normal business hours of the nonprimary location.

§ 189.35. Nondiscrimination.

 A licensed racing entity may not discriminate against an employee, applicant for employment, independent contractor or other person because of race, color, religious creed, ancestry, National origin, age, sex or nonjob related handicap or disability.

§ 189.36. Admission of minors.

 No licensed corporation may permit a person who is 21 years of age or younger to wager at a nonprimary location. Except that: This section does not prohibit persons 18 years of age or younger who are legally employed from being on the nonprimary location premises for the sole purpose of performing their duties as employees. If the relocated or reopened nonprimary location is constructed within a duly licensed gaming facility or casino, the licensed racing entity may exclude anyone from its facility under the age of 21.

Subpart C. PARI-MUTUEL WAGERING

Chap.

191.	GENERAL PROVISIONS—TEMPORARY REGULATIONS
193.	PARI-MUTUEL WAGERING AND TICKETS—TEMPORARY REGULATIONS
195.	SIMULCASTING—TEMPORARY REGULATIONS
197.	ADVANCE DEPOSIT ACCOUNT WAGERING—TEMPORARY REGULATIONS
199.	COMMON POOL WAGERING—TEMPORARY REGULATIONS

CHAPTER 191. GENERAL PROVISIONS—TEMPORARY REGULATIONS

Sec.

191.1.	General requirements.
191.2.	Definitions.

§ 191.1. General requirements.

 (a) Pari-mutuel wagering utilizes a totalisator system to pool wagers. Totalisator companies or providers shall be duly licensed in accordance with the applicable provisions of the act and Chapter 187 (relating to racing vendors and totalisators—temporary regulations) of these regulations. The totalisator system may be located on property of a licensed racing entity or may, subject to compliance with the provisions of the act and these rules, reside at another location.

 (b) Wagering subject to approval and compliance with applicable law and rules, may be accepted by separate totalisator systems in this or other jurisdictions, and combined by means of communication between totalisator systems.

 (c) The Commission may, without specific reference in these rules, utilize a designee for the purposes of licensing, certification, verification, inspection, testing and investigation. A Commission designee may be another Commission or equivalent regulatory authority, a multi-jurisdictional group of regulatory authorities an associa- tion of regulatory authorities or auditing, consulting, security, investigation, legal services, or other qualified entities or persons.

 (d) The Commission may enter into multijurisdiction agreements with other regulatory authorities to facilitate certification of compliance with requirements by, and licensing of, totalisator companies, entities providing services for simulcasting and common pool wagering, secondary pari-mutuel organizations, racing vendors and advance deposit account wagering systems. These agree- ments shall, at a minimum, ensure certification and licensing requirements comparable to this jurisdiction.

§ 191.2. Definitions.

 The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:

 Account—An account for account wagering with a specific identifiable record of deposits, wagers and withdrawals established by an account holder and managed by the licensed racing entity or secondary pari-mutuel organization.

 Advance deposit account wagering system—ADW system—A system by which wagers are debited and payouts are credited to an advance deposit account held by a licensed racing entity or by its licensed racing vendor or secondary pari-mutuel organization on behalf of a person.

 Authorized Pari-Mutuel Wagering Entity—APWE—A duly licensed racing entity, a licensed racing vendor or a licensed SPMO which engage in or conduct all forms of pari-mutuel wagering, including licensed advanced deposit wagering.

 Carryover—The non-distributed pool moneys which are retained and added to a corresponding pool in accordance with these regulations.

 Common Pool Wagering—A pari-mutuel wagering pool administered in one jurisdiction which includes legal wagers of a single type placed in more than one jurisdiction on a race or series of races.

 Expired ticket—An outstanding ticket which was not presented for redemption within the required time period for which it was issued in accordance with the Commission's regulations.

 Independent Real Time Monitoring System—A system approved by the Commission for the purpose of immediate and continuous analysis of wagering and other pari-mutuel systems data to detect suspect wagering transactions or other activity indicating a possible problem relating to the integrity of the pari-mutuel system and which transmits transactional level data to a wagering security database.

 Interstate off-track wager—A legal wager placed or accepted in one state with respect to the outcome of a horse race taking place in another state and includes pari-mutuel wagers, where lawful in each state involved, placed or transmitted by an individual in one state by means of telephone or other electronic media and accepted by an off-track betting system in the same or another state, as well as the combination of any pari-mutuel wagering pools.

 Licensed Racing Entity—Any person that has obtained a license to conduct live thoroughbred or harness horse race meetings respectively with pari-mutuel wagering from the Commission.

 Live Racing Event Host—A licensed racing entity where live horse racing is conducted and on which pari-mutuel wagering is conducted by secondary pari-mutuel organizations.

 Net amount wagered—The amount wagered reduced by the retention imposed under the laws of the Commonwealth or another jurisdiction.

 On-track wager—A wager with respect to the outcome of a horse race which is placed at the racetrack at which the horse race takes place.

 Pari-Mutuel Cash Voucher—a document or card produced by a pari-mutuel system device on which a stored cash value is represented and the value of which is recorded in and redeemed through the pari-mutuel system.

 Pari-Mutuel Pool Host—A licensed racing entity that operates and controls access of secondary pari-mutuel organizations to, a pari-mutuel pool.

 Pari-Mutuel Ticket—A document printed or record produced by a pari-mutuel system device on which is represented a pari-mutuel wager or wagers that have been authorized and accepted for purposes of participation in a pari-mutuel pool.

 Pari-Mutuel System—The hardware, software and communications equipment used to record wagers, calculate payouts for winning wagers, and transmits wagering transactions and pari-mutuel pool data for display to patrons and to communicate with other pari-mutuel systems linked to facilitate common pool wagering.

 Pari-Mutuel Wagering—A form of wagering, including manual, electronic, computerized and other forms as approved by the Commission, on the outcome of a horse racing event in which all wagers are pooled and held by authorized pari-mutuel wagering entities for distribution of the total amount, less the deductions authorized by law, to holders of winning tickets.

 Payout—The amount of money payable to winning wagers.

 Real Time Transaction Monitoring System—An operating system that can respond to input immediately, within the actual time in the real world during which an event takes place. The system must be able to react to a steady flow of new information without interruption and perform its tasks within the same time constraints as the totalisator system it monitors.

 Simulcast—Live video and audio transmission of a race and pari-mutuel information for the purpose of pari-mutuel wagering at locations other than a licensed association where the race is run.

 Takeout—The total amount of money, excluding breakage, withheld from each pari-mutuel pool, as authorized by section 9335 of the act.

 Totalisator System Standards—Minimum standards for approval and operation of a pari-mutuel wagering system.

 Wagering Transmission Protocol (WTP)—A pari-mutuel wagering system protocol that facilitates transmission of wagering transaction detail to a host totalisator.

CHAPTER 193. PARI-MUTUEL WAGERING AND TICKETS—TEMPORARY REGULATIONS

Sec.

193.1.	Pari-mutuel wagering.
193.2.	Sale of pari-mutuel tickets.
193.3.	Payments.
193.4.	Daily Double.
193.5.	Perfecta (Exacta).
193.6.	Quiniela.
193.7.	Trifecta.
193.8.	Refunds.
193.9.	Information required by Commission and Department of Revenue.
193.10.	Record of unpaid tickets.
193.11.	Report of handle and attendance.
193.12.	Test of equipment.
193.13.	Personnel.
193.14.	Odds board.
193.15.	Creation of new betting pools.

§ 193.1. Pari-mutuel wagering.

 (a) All licensed racing entities shall use a pari-mutuel ticket machine for the sale of pari-mutuel tickets, unless otherwise authorized by the Commission. All licensed racing entities or other approved entities shall be required to use totalisator systems licensed by the Commission.

 (1) No electronic calculator may be deemed one of approved design unless it is capable of registering by automatic electronic or mechanical means on central aggregators all wagers made on each horse, entry, or the field, in each of the straight, place and show pools, and displaying the totals so registered in a way as to permit ready tabulation thereof by the representative of the Commission.

 (b) The controls necessary to operate the Odds Board in the infield, relative to the way the horses finish, (if the finish is being contested, if there is a photo, dead-heat, time of race) are to be located in the Judges or Stewards' stand and controlled only by the Judges or Stewards.

§ 193.2. Sale of pari-mutuel tickets.

 (a) The method of generating and selling pari-mutuel tickets by licensed racing entities or other approved entities shall be approved by the Commission.

 (b) Bookmaking or wagering other than pari-mutuel wagering is strictly prohibited.

 (c) No minor shall be allowed to wager.

 (d) All wagering shall stop and all pari-mutuel machines shall be locked on post time or the actual start of all races, whichever shall first occur. These machines shall be automatically locked by the control of the Starter or by the Judges or Stewards as either case shall require in each race.

 (e) When the sale of pari-mutuel tickets has closed, it shall remain closed until after the race has finished.

 (f) No pari-mutuel ticket shall be sold for less than $2 except with specific approval by the Commission.

 (h) The Manager of the Pari-Mutuel Department shall be properly and timely advised by the Judges or Stewards prior to the beginning of wagering on each race, of the horses that will compete in the race and any changes from those listed in the official program.

 (i) If less than six interests qualify horses to start in a race, the Manager of the Pari-Mutuel Department, with the consent of the representative of the Commission, may prohibit Show wagering on that race.

 (j) If less than five interests qualify horses to start in a race, the Manager, with the consent of the representative of the Commission, may prohibit both Place and Show wagering on that race.

 (k) If less than three interests qualify horses to start in a race, the Manager, with the consent of the representative of the Commission may prohibit wagering on the race.

 (l) The Manager, with the consent of the representative of the Commission, may prohibit wagering on any particular horse or entry in any race. The consent shall be sought by the Manager of the Pari-Mutuel Department from the representative of the Commission after the entries are closed on the day previous to that during which the races in which exclusions are desired are to be conducted. The exclusions, if consented to by the representative of the Commission, shall be clearly indicated on the program or score card and horses excluded shall be numbered so as to in no way infer that they are coupled in the field. Horses once excluded from the wagering shall remain excluded during the day or race in which they are scheduled to start.

 (m) Coupled entries in Daily Double, Twin Double, or Perfecta races shall be allowed as provided in the Commission's regulations.

 (n) When one or more horses representing separate interests are started in a race than the number of post positions on the infield tote board, all horses in excess of a number of interests one less than the total number of post positions on the infield tote board shall be grouped in the wagering as the field.

 (o) A refund cost value shall be made to all holders of a purchased ticket bearing the number of a horse in any race which has been scratched or withdrawn before said horse has become a Starter in the race under the provisions of this part.

 (p) No claims or assertions of any nature relating to any way to any alleged defect, misprint, or other form of error or mistake in the printing, imprinting, sale, or issuance or any pari-mutuel ticket will be entertained or allowed after the purchaser has left his place at the selling window. The act of removal from the selling window by any purchaser shall be conclusively deemed to be an acceptance of a ticket as actually printed and issued and to be an intentional, knowing waiver of any and all defects, mistakes, or errors thereon. Verification of the accuracy of all these tickets shall be the responsibility of the purchasers thereof.

 (q) No person shall present or cause any pari-mutuel ticket to be presented or processed in return for payment of any commission, premium, discount, or other consideration of any nature other than the authorized pool payment to be distributed in full to the owner or owners thereof.

§ 193.3. Payments.

 (a) Unless otherwise approved by the Commission, payments due on all wagers shall be made in conformity with the well-established practice and procedures of the pari-mutuel system. The practice is to work in dollars and not in the number of tickets. Money wagered on winning tickets is returned in full, plus the profits. In all cases of a winning mutuel pool, each licensed racing entity must redistribute not less than $2.20 on each $2 wager, except that in a race in which there is a minus pool, the licensed racing entity must distribute $2.10 on each $2 wager.

 (b) Payments on all winning pari-mutuel tickets and tickets refundable according to rules shall be made only on presentation and surrender of the appropriate ticket. Mutilated tickets and those whose validity are questioned shall be submitted to the Commission for inspection and approval before payment.

 (c) At the end of each race, the Placing Judges or other racing official shall advise the Manager of the Pari-mutuel Department and the representative of the Commission in writing of the official placement of the horses.

 (d) If a horse wins and there is no money wagered on him to win, the win pool shall be apportioned among the holders of the place tickets on that horse, if any, otherwise, holders of the show tickets.

 (e) If no money has been wagered to place on a horse which is placed first or second in a race, the place pool for that race shall be apportioned among the holders of the place tickets on the other horse which was placed first or second.

 (f) If no money has been wagered to show on a horse which has placed first, second or third in a race, the show pool in that race shall be apportioned among the holders of show tickets on the other horses which are placed first, second or third in that race.

 (g) In the event that only two horses finish in a race, the show pool shall be figured the same as the place pool and the moneys apportioned to the holders of show tickets on the two finishing horses. In the event only one horse finishes in a race, all three pools shall be figured separately as straight pools and all the moneys shall be awarded to the ticket holders of the finishing horse. In the event no horse finishes the race, then the entire pool shall be refunded to all ticket holders.

 (h) If two horses finish in a dead heat for first place, the money in the win mutuel pool is divided between the two dead-heaters according to their proportionate shares in the pool.

 (i) If two horses finish in a dead heat for second place, the division is made as follows: there shall be allotted to the pool of the winner of the race one-half of the place pool and the two dead-heaters one-half each of the remaining half of the place pool.

 (j) If two horses coupled in the betting as an ''entry'' or ''the field'' finish first and second, first and third or second and third, the division of the net show pool shall be as follows: two-thirds of the net show pool shall be allotted to the pool of the entry and the balance one-third to the other horse.

 (k) In the event that one horse of the entry or the field finishes first or second and the other part of the entry or field finishes in a dead heat for third with another horse, the division of the net show pool shall be as follows: one-half of the net show pool shall be allotted to the pool of the entry, one-third to the horse finishing first or second, and one-sixth to the horse finishing in the dead heat with the entry for third.

 (l) If the entry or field horses should finish first, second and third, then the entire money in each pool goes to the entry or field tickets, no other tickets participating.

 (m) If an error is made in posting pay off figures on the public board and no payments have been made, it shall be corrected promptly and a statement explaining the facts made over the public address system forthwith. In the event of an error resulting in overpayment, any payments already made shall be deemed final and the recipients shall be entitled to retain the same. In the event of an error in calculations which results in an under payment and payments have already been made the amount of the under payment shall be promptly ascertained and confirmed by the Commission. Upon the confirmation, the under payment shall be transferred to the next corresponding pool on the racing program of the same day. In the event the amount of the under payment cannot be ascertained and confirmed before the conclusion of the racing program of the day, the under payment shall be escrowed by the Association and distributed in the pools of all races on the daily program next run. No deferred redistribution of any under payment shall be undertaken without prior consent of the Commission. Under payments shall be promptly and fully reported to the Commission. An under payment not distributed or un-distributable prior to the end of a meet shall be held in trust and transferred into the next corresponding pool of the next race meeting of the licensed racing entity in question.

 (n) All winning pari-mutuel tickets must be presented for payment before April 1st of the year following the year of their purchase and failure to present any ticket within the prescribed period of time shall constitute a waiver of the right to participate in the award or dividend. After April 1st of the year following the year of their purchase, all licensees shall forward to the State Treasurer all funds so held for the uncashed tickets. The Commission shall be notified by the licensee of the amounts so forwarded.

 (o) No mutilated pari-mutuel ticket that is not easily identifiable as being a valid ticket shall be accepted for payment.

 (p) No person acting alone or in concert with any other party or entity shall deface, alter, change, or attempt to duplicate or reproduce any pari-mutuel ticket or attempt to effect a defacement, alteration, change, duplication or reproduction nor shall any person or persons in any manner attempt to present or negotiate any ticket for payment however or whenever the same may have been defaced, altered, changed, reproduced or duplicated.

 (q) No claims for a pari-mutuel ticket which the holder alleges he has lost or claims for a pari-mutuel ticket which is not in the possession of the holder, shall be considered for payment by a licensed racing entity or by the Commission.

§ 193.4. Daily Double.

 (a) No Daily Double shall be conducted without permission of the Commission. There shall be no exchange of Daily Double tickets after the purchase thereof, all tickets on the Daily Double will be calculated in an entirely separate pool.

 (b) To win a Daily Double, it is necessary for the purchaser of a Daily Double ticket to select the winners of each of the two races specified for the double. If either of his selections fails to win, his contract is void, except as hereafter provided.

 (c) All tickets will be to win (Straight) only. Horses designated and listed as the ''Field,'' race as one horse in the Daily Double. If two or more horses in a race are listed as ''Field'' on the same totalisator ticket, there shall be no refunds, unless all the horses so listed are excused before ''off'' time.

 (d) Selections are to be made of one horse for each of two races in the Daily Double by ''Tote'' program numbers.

 (e) If no ticket is sold combining the two winners of the Daily Double, the pool shall then be apportioned equally between those having tickets including the winner in the first race of the Daily Double and those having tickets including the winner in the second race of the Daily Double in the same manner in which a Place Pool is calculated and distributed.

 (f) If no ticket is sold on the winner of the first race of the Daily Double on any combination, the entire pool is apportioned to the holder of tickets on the winner of the second race of the Daily Double. Likewise, if no ticket is sold on the winner of the second race of the Daily Double on any combination, the entire pool is apportioned to the holders of tickets on the winner of the first race of the Daily Double.

 (g) If a dead heat to win should result in either the first or second race of the Daily Double, the total pool is calculated as a place pool. In case of a dead heat for the winner of the first race of the Daily Double, the posting of payoff prices will be made after winner of second race of the Daily Double is Official.

 (h) If no ticket is sold containing the numbers of either winner on any combination, the pool shall be allotted to those having tickets on horses finishing second in each of the two contests, but if there are no wagers, then the entire pool shall be refunded on Double wagers for those contests.

 (i) In the event any horse or horses in the first half of the Daily Double should be excused by the racing officials after the horses shall have left the paddock for the post, or after the betting on the Daily Double has been closed, or should any horse or horses in the first half of the Daily Double be prevented from racing because of failure of the starting gate to open, the money wagered on any horse or horses so excused or prevented from racing shall be deducted from the Daily Double Pool and refunded to the purchaser or purchasers of tickets on the horse or horses so excused or prevented from racing.

 (1) Should any horse or horses be scratched, excused by the racing officials or prevented from racing because of the failure of the starting gate to open in the last half of the Daily Double, all tickets combining the horse or horses with the winner of the first race of the Daily Double shall become consolation tickets and shall be paid a price per dollar bet determined as follows: the net Daily Double Pool (the gross Daily Double Pool less tax) shall be divided by the total purchase price of all Daily Double tickets designating the winner of the first half of the Daily Double and the quotient attained shall constitute the price to be paid. The total amount payable on consolation tickets shall be deducted from the net Daily Double Pool.

 (j) The possible payoff prices shall be posted or announced to the public before the start of the last race of the Daily Double, and as soon as possible after the horses in the race of the last half of the Daily Double have entered upon the track on the way to the post.

 (k) In case the second half of the Daily Double is not raced due to rain, or for any other cause, the entire pool shall be apportioned and paid, less commission, to the holders of tickets on the winner of the first race of the Daily Double.

 (1) If a Daily Double is scheduled to be held, subsections (a)—(k) inclusive of this Rule shall be printed on the day's racing program and notice printed on said program as follows: ''Retain your tickets until the result of the Daily Double has been posted.''

§ 193.5. Perfecta (Exacta).

 (a) No Perfecta (Exacta) wagering shall be conducted without permission of the Commission. The races in which Perfecta (Exacta) type pari-mutuel wagering will be permitted shall only be those designated by the Commission and separate pools shall be established therefor.

 (b) To win a Perfecta (Exacta), it is necessary for the purchaser of a Perfecta (Exacta) ticket to select in order the horse declared the winner and the horse declared to have placed in the race in which Perfecta (Exacta) type wagering is permitted. If either of the selections made by the purchaser fails to be declared to have finished in the position designated by the purchaser when purchasing the Perfecta (Exacta) ticket, then the contract is void except as hereinafter provided.

 (c) Should there be a dead heat to win in a Perfecta (Exacta) race, holders of tickets combining those two horses in either order will share in the Perfecta (Exacta) payoff. Should there be a dead heat for place, holders of tickets combining the horse declared the winner with either of the horses declared to have finished in the dead heat for place shall share in the Perfecta (Exacta) payoff. In both of the aforementioned instances, the net pool shall be distributed and calculated in the same manner as a Place Pool.

 (d) As a profit split to those whose combination included either the first-place betting interest to finish first or the second-place betting interest to finish second, but if there are no wagers on one of those two finishers, then

 (1) As a single price pool to those whose combination included the one covered betting interest to finish first or second in the correct sequence, but if there are no wagers, then

 (i) The entire pool shall be refunded on Exacta wagers for that contest.

 (e) In the event a horse or horses in the Perfecta (Exacta) should be excused by the racing officials after the horses have left the paddock for the post, or after the betting on the Perfecta (Exacta) has been closed, or should a horse or horses in the Perfecta (Exacta) be prevented from racing because of failure of the starting gate to open, the money wagered on the horse or horses so excused or prevented from racing shall be deducted from the Perfecta (Exacta) Pool and refunded to the purchaser or purchasers of tickets on the horse or horses so excused or prevented from racing.

 (f) In the event only one horse finishes the race and is declared the winner, the net pool shall be distributed to holders of Perfecta (Exacta) tickets designating to win the horse declared the winner.

 (g) ''Fields'' are permitted in a Perfecta (Exacta) race. If two or more horses in a Perfecta (Exacta) race are listed as the ''Field'' on totalisator tickets they shall be counted as a single selection for determining the order of finish. In the event two field entries finish in first and second place, only the one finishing first shall be deemed a winning entry for Perfecta (Exacta) purposes and the next closest non-field entry shall be deemed the second place finisher for Perfecta (Exacta) wagers. There shall be no refunds for field entries, unless all the horses listed in the field are excused before ''off'' time.

§ 193.6. Quiniela.

 (a) No Quiniela wagering shall be conducted without prior permission of the Commission. The races in which Quiniela-type pari-mutuel wagering will be permitted shall only be those designated by the Commission and separate pools shall be established therefor.

 (b) The principle of a Quiniela is, in effect, a contract by the purchaser of a Quiniela ticket to select the first two horses to finish in a race. The order in which the horses finish is immaterial. The Quiniela is not a ''parlay'' and has no connection with or relation to win, place or show betting, and will be calculated in an entirely separate pool.

 (c) In cases of a dead heat between the two horses for first place, the combination shall be the winner of the Quiniela pool.

 (d) In case of a dead heat between two horses for second place, the pool shall be figured as a Place pool, the holders of tickets combining the winning horse and the two horses finishing second participating in the payoff.

 (e) In case of a dead heat for second place, and no ticket is sold on one of the two winning combinations, the entire net pool shall be calculated as a win pool and distributed to those holding tickets on the winning combination.

 (f) If no ticket is sold on the winning combination of a Quiniela pool, the net pool shall be apportioned equally between those having tickets including the horse finishing first and those having tickets including the horse finishing second, in the same manner in which a place pool is calculated.

 (g) If no ticket is sold that would require distribution of a Quiniela pool to a winner as above defined, the licensee shall make a complete and full refund of the Quiniela pool.

 (h) In case of a scratch in a Quiniela race, the patron holding a ticket on the scratched horse will receive a refund.

§ 193.7. Trifecta.

 (a) No trifecta wagering may be conducted without permission of the Commission. The only races in which ''trifecta'' type pari-mutuel wagering is permitted, are those races designated by the Commission and a separate pool is established therefor.

 (b) The trifecta is a form of pari-mutuel wagering in a single race in which the bettor selects a ticket combining in exact finishing order, as officially posted the first, second and third place winner.

 (c) The trifecta is not a parlay and except as set forth in this section, has no connection with or relation to the win, place and show betting and will be calculated as an entirely separate pool.

 (d) Trifecta tickets shall be sold in at least $2 denominations or in denominations as from time to time are approved by the Commission.

 (e) If no ticket is sold on the winning combination of a trifecta pool, the net pool shall be distributed to the holders of tickets selecting the win and place finishers in that order. If no ticket is sold combining the win and place finish, the net pool will be distributed to the holders of tickets selecting the winner. If less than three horses finish, the payoff will be made to holders of tickets selecting the finishing horses in order, ignoring the balance of the selection.

 (f) If no ticket is sold that would require distribution of the trifecta pool to a winner defined in this section, the licensee shall make a complete and full refund of the Trifecta Pool.

 (g) In the event of a dead heat or dead heats, all trifecta tickets selecting the correct order of finish, counting a horse in a dead heat as finishing in either position dead heated, shall be winning tickets. The payoff will be calculated as a place pool by dividing the net trifecta pool by the total purchase price of winning tickets.

 (h) In the event of a scratch in the trifecta no exchanges will be made. All tickets which include the scratched horse are eliminated from further participation in the trifecta pool and will be refunded.

 (i) Coupled entries and fields are allowed in trifecta races as set forth in the Commission's regulations.

 (j) Trifecta tickets shall be sold only by the licensed racing entity or other approved entity. Resale of these tickets from one individual to another is prohibited and shall be grounds for ejection.

 (k) Each licensed racing entity shall print in heavy type in a conspicuous place in its daily printed program all the provisions of this section and post printed copies of this section about the track in places as it deems available.

§ 193.8. Refunds.

 (a) Any ruling of the Judges or Stewards or the Commission with regard to the award of purse money made after the sign ''official'' has been purposely displayed shall have no bearing on the pari-mutuel payoff.

 (b) In all cases when a horse has been excused by a racing official after wagering has started, but before the horses shall have actually started, all money wagered on the horse so excused shall be deducted from the pool and refunded.

 (c) If two or more horses in a race are coupled on the same pari-mutuel ticket, there shall be no refunds unless all of the horses so coupled are excused before the actual start.

 (d) In the case of a race being declared off or postponed to another day by the Stewards after the wagering has begun, all money wagered in that race shall be refunded.

§ 193.9. Information required by Commission and Department of Revenue.

 The officers and employees of the licensed racing entity shall promptly give the Department of Revenue and the Commission the information as they may request from time to time and shall fully cooperate with them in every way.

§ 193.10. Record of unpaid tickets.

 An itemized record of all unpaid winning pari-mutuel tickets shall be prepared and a complete record thereof, including total, forwarded to the Commission and the Department of Revenue in a timely manner, if requested.

§ 193.11. Report of handle and attendance.

 On a monthly basis, the licensed racing entity or other approved entity shall provide to the Commission, a report including the following: handle of each race, amount in each pool, Daily Double handle, total daily handle and attendance.

§ 193.12. Test of equipment.

 All licensed racing entities or other approved entities shall have a test, by actual operation, of the pari-mutuel equipment before the opening of each meeting or prior to beginning operations, which shall be approved by a representative of this Commission.

§ 193.13. Personnel.

 (a) A list of the personnel of the Pari-Mutuel Department shall be submitted to the Commission for its approval as requested by the Commission.

 (b) If requested by the Commission, a copy of the Pari-Mutuel Department payroll shall be submitted to the Commission and shall be accompanied by a statement sworn to by the manager of the Pari-Mutuel Department attesting to the report's accuracy.

§ 193.14. Odds board.

 A licensee shall provide a sign, approved by the Commission upon which shall be displayed, the approximate straight odds on each horse in a race, the value of a $2 winning pari-mutuel ticket, straight, place or show on the first three horses in the race; the elapsed time of the race; the value of a $2 winning daily double ticket; the total amount wagered on each horse and each pool and other information that the Commission may deem necessary.

§ 193.15. Creation of new betting pools.

 (a) A licensed racing entity seeking to offer new forms of wagering, such as ''pick (x),'' ''instant racing pools,'' ''mix and match'' or other similar type pools for its patrons must first apply in writing to the Commission and receive written approval prior to implementing the new betting pool.

 (b) For each new betting pool, the licensed racing entity shall provide the rules associated with the betting pool, including:

 (1) description of the game; how to wager;

 (2) take out rates and payout calculations;

 (3) wager amounts;

 (4) coupled entry and mutuel fields and dead heat rules;

 (4) carryover provisions, if applicable;

 (5) other conditions and requirements of the betting game.

 (c) A licensed racing entity which seeks to terminate a previously approved betting game/pool shall provide a notice to the Commission 30 days prior to terminating the game/pool.

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