Pennsylvania Code › Title 7 - AGRICULTURE › Part VIII - State Horse Racing Commission › Subpart A - General Provisions › Chapter 171 - PRELIMINARY PROVISIONS-TEMPORARY REGULATIONS › Section 171.5 - General definitions

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				  following words and phrases, when used in this part, shall have the following
				  meanings given to them, 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.
Account holder
-An individual who
					 successfully completed an application and for whom the licensed racing entity
					 or the secondary pari-mutuel organization has opened an account.
Act
-The Race Horse Industry Reform Act
					 (act of October 28, 2016) ( P.L. 913, No. 114),
					 3
					 Pa.C.S. §§
												9301- 9374 (relating to
					 race horse industry reform).
Advance deposit account wagering system
-A
					 system by which wagers are debited and payouts are credited to an advance
					 deposit account held by a licensed racing entity or secondary pari-mutuel
					 organization on behalf of a person.
Advance deposit wagering
-
ADW
-A form of gambling on the outcome of horse races in which
					 bettors must fund their account before being allowed to place bets. ADW may be
					 conducted outline or by phone.
Appeal
-A request for the Commission or its
					 designee to investigate, consider and review any decisions or rulings of the
					 Board of Stewards or Board of Judges, Bureau Directors or other Commission
					 staff.
Applicant
-A person who, on his own behalf
					 or on behalf of another, applies for permission to engage in an act or activity
					 which is regulated under the provisions of this part. If the applicant is a
					 person other than an individual, the Commission shall determine the associated
					 persons whose qualifications are necessary as a precondition to the licensing
					 of the applicant.
Arrest
-Detaining, holding or taking into
					 custody by police or other law enforcement authorities for the alleged
					 commission of an offense.
Authorized agent
-A person licensed by the
					 Commission and appointed by a written instrument, signed and acknowledged
					 before a notary public by the owner in whose behalf the agent will act.
Backside area
-An area of the racetrack
					 enclosure that is not generally accessible to the public and which includes,
					 but is not limited to, a facility commonly referred to as a barn, paddock
					 enclosure, track kitchen, recreation hall, backside employee quarters and
					 training track and roadways providing access to the area. The term does not
					 include an area of the racetrack enclosure which is generally accessible to the
					 public, including the various buildings commonly referred to as the grandstand
					 or the racing surface and walking ring.
Breakage
-The odd cents of redistributions
					 to be made on contributions to pari-mutuel pools exceeding a sum equal to the
					 next lowest multiple of ten.
Bureau Director
-The Director of the Bureau
					 of Standardbred Horse Racing and the Director of the Bureau of Thoroughbred
					 Horse Racing.
Carryover
-The non-distributed pool moneys
					 which are retained and added to a corresponding pool in accordance with these
					 rules.
Clean letter of credit
-A letter of credit
					 which is available to the beneficiary against presentation of a draft or
					 receipt.
Commission
-The State Horse Racing
					 Commission.
Commission staff
-Employees of the
					 Commission, under the direct supervision of Bureau Directors, who perform
					 various administrative, licensing, enforcement and investigative duties and
					 functions. This term may include licensing staff, investigative staff or
					 enforcement staff.
Commissioner
-An individual appointed to
					 and sworn in as a member of the Commission in accordance with section 9311(b)
					 of the act,
					 3
					 Pa.C.S. §
												9311(b)
					 (relating to State Horse Racing Commission).
Confidential information
-Materials that
					 are not available to the public.
Contest
-A competitive racing event on
					 which pari-mutuel wagering is conducted.
Controlled substance
-Any substance
					 included in the five classification schedules under section 811 of the
					 Controlled Substance Act of 1970 (
					 21 U.S.C.A. §
												811.
Conviction
-A finding of guilt or a plea of
					 guilty or nolo contendere, whether or not a judgment of sentence has been
					 imposed as determined by the law of the jurisdiction in which the prosecution
					 was held. The term does not include a conviction that has been expunged or
					 overturned or for which an individual has been pardoned or an order of
					 accelerated rehabilitative disposition.
Department
-The Department of
					 Agriculture.
Ejection or refusal of admission
-The
					 ejection or refusal of admission by a licensed racing entity or the Commission
					 from the racetrack enclosure or any other area under the jurisdiction of the
					 Commission.
Electronic wagering
-A method of placing or
					 transmitting a legal wager by an individual in this Commonwealth through
					 telephone, electromechanical, computerized system or any other form of
					 electronic media approved by the Commission and accepted by a secondary
					 pari-mutuel organization or a licensed racing entity or the licensed racing
					 entity's approved off-track betting system located in this Commonwealth.
Evergreen clause
-A term in a letter of
					 credit providing for automatic renewal of the letter of credit.
Ex parte communication
-An off-the-record
					 communication engaged in or received by a Commissioner of the Commission
					 regarding the merits of, or any fact in issue relating to, a pending matter
					 before the Commission or which may reasonably be expected to come before the
					 Commission in a contested on-the-record proceeding. The term shall not
					 include:
(1) An off-the-record
				  communication by a Commissioner, the Department of Revenue, Pennsylvania State
				  Police, Attorney General or other law enforcement official, prior to the
				  beginning of the proceeding solely for the purpose of seeking clarification or
				  correction to evidentiary materials intended for use in the
				  proceedings.
(2) A communication
				  between the Commission or a Commissioner and legal counsel.
Exhibition race
-A race on which no
					 wagering is permitted or conducted.
Felony
-An offense under the laws of the
					 Commonwealth or the laws of another jurisdiction, punishable by imprisonment
					 for more than 5 years.
Final order
-One of the following:
(1) An action by the Commission which
				  approves, issues, renews, revokes, suspends, conditions, or denies issuance or
				  renewal of a license.
(2) An action
				  by the Commission which affects personal or property rights, privileges,
				  immunities, duties, liabilities or obligations and disposes of all proper
				  claims by or against parties before the Commission.
(3) An action by the Commission which is
				  designated by the Commission as final.
Financial interest
-An ownership, property,
					 leasehold or other beneficial interest in an entity. The term shall not include
					 an interest which is held or deemed to be held in any of the following:
(1) Securities that are held in a pension
				  plan, profit-sharing plan, individual retirement account, tax-sheltered
				  annuity, a plan established under section 457 of the Internal Revenue Code of
				  1986 ( Pub.L. No. 99-514) ( 26 U.S.C.A. §
												457 ), or any
				  successor provision, deferred compensation plan whether qualified or not
				  qualified under the Internal Revenue Code of 1986, or any successor provision
				  or other retirement plan that:
(i) Is not
				  self-directed by the individual.
(ii) Is advised by an independent investment
				  adviser who has sole authority to make investment decisions with respect to
				  contributions made by the individual to these plans.
(2) A tuition account plan organized and
				  operated under section 529 of the Internal Revenue Code of 1986 ( Pub.L. No.
				  99-514) ( 26 U.S.C.A. §
												529 ) that is not self-directed by the
				  individual.
(3) A mutual fund where
				  the interest owned by the mutual fund in a licensed racing entity does not
				  constitute a controlling interest as defined in
				  4
				  Pa.C.S. §
												1103 (relating to
				  definitions).
Forfeit
-A specified amount of money due
					 from a licensee because of error, fault, neglect of duty, breach of contract or
					 a penalty imposed by the Board of Judges or the Board of Stewards or the
					 Commission.
Horse race meeting
-A specified period and
					 dates each year during which a licensed racing entity is authorized to conduct
					 live racing or pari-mutuel wagering as approved by the Commission.
Horse racing
-Standardbred horse racing and
					 thoroughbred horse racing.
Horsemen's organization
-A trade
					 association which represents the majority of owners and trainers who own and
					 race horses at a racetrack.
Immediate family
-A spouse, parent,
					 brother, sister or child.
Irrevocable clean letter of credit
-A clean
					 letter of credit which cannot be canceled or amended unless there is an
					 agreement to cancel or amend among all parties to the letter of credit.
Judges
or
Stewards
-Shall
					 refer to the Board of Judges for the Standardbred racing industry or Board of
					 Stewards for the Thoroughbred racing industry respectively.
Land mile
-A unit of distance equal to
					 1,609.3 meters or 5,280 feet, as measured in a straight line.
Licensed racetrack
or
racetrack
-
(1) The
				  physical facility and grounds for which a person has obtained a license from
				  the Commission to conduct live thoroughbred or standardbred race meetings with
				  pari-mutuel wagering or
(2) The
				  physical land-based location at which live horse racing is conducted, even if
				  not owned by the person.
Licensed racing entity
-Any person that has
					 obtained a license to conduct live thoroughbred or harness horse race meetings
					 with pari-mutuel wagering from the Commission.
Licensee
-The holder of a license issued
					 under this part.
Nominal change in ownership
-The sale,
					 pledge, encumbrance, execution of an option agreement or other transfer of less
					 than 5% of the equity securities or other ownership interest of a person whose
					 percentage ownership does not affect the decisions of the licensed racing
					 entity.
Nonprimary location
-Any facility in which
					 pari-mutuel wagering is conducted by a licensed racing entity under this part
					 other than the racetrack where live racing is conducted. Also known as an
					 off-track wagering location.
On-the-record proceedings
-A matter that
					 comes before the Commission or its presiding officer by way of application,
					 complaint, petition, appeal, decision or other proceeding for which a formal
					 record is created and upon which the Commission bases its order and
					 adjudication.
Ownership interest
-Owning or holding, or
					 being deemed to hold, debt or equity securities or other ownership interest or
					 profit interest.
Pari-mutuel wagering
-A form of wagering,
					 including manual, electronic, computerized and other forms as approved by the
					 Commission, on the outcome of a horse racing event in which all wagers are
					 pooled and held by a licensed racing entity or secondary pari-mutuel
					 organization for distribution of the total amount, less the deductions
					 authorized by law, to holders of winning tickets.
Person
-Any natural person, corporation,
					 foundation, organization, business trust, estate, limited liability company,
					 license corporation, trust, partnership, limited liability partnership,
					 association or any other form of legal business entity.
Primary market area of a racetrack
-The
					 land area included in a circle drawn with the racetrack as the center and a
					 radius of 35 land miles.
Principal
-Any of the following individuals
					 associated with a partnership, trust association, limited liability company or
					 corporation:
(1) The chairman and each
				  member of the board of directors of a corporation.
(2) Each partner of a partnership and each
				  participating member of a limited liability company.
(3) Each trustee and trust beneficiary of an
				  association.
(4) The president or
				  chief executive officer and each other officer, manager and employee who has
				  policy-making or fiduciary responsibility within the organization.
(5) Each stockholder or other individual who
				  owns, holds or controls, either directly or indirectly, 5% or more of stock or
				  financial interest in the collective organization.
(6) Any employee, agent, guardian, personal
				  representative, lender or holder of indebtedness who has the power to exercise
				  a significant influence over the applicant's or licensee's operation.
Racetrack enclosure
-With respect to each
					 licensed racing entity, shall be deemed to include at least one primary
					 racetrack location at which horse race meetings authorized to be conducted,
					 including the grandstand, frontside and backside facilities and all primary,
					 non-primary, contiguous and noncontiguous locations of the licensed racing
					 entity which are specifically approved by the Commission for conducting the
					 pari-mutuel system of wagering on the results of horse racing held at the
					 meetings or race meetings conducted by another licensed racing entity or
					 transmitted to these locations by simulcasting.
Racing vendor
-A person who provides goods
					 or services to a licensed racing entity or other licensed racing entity
					 directly related to racing or the racing product, as determined by the
					 Commission.
Secondary market area of a racetrack
-The
					 land area included in a circle drawn with the racetrack as the center and a
					 radius of 50 land miles, not including the primary market area of the
					 racetrack.
Secondary pari-mutuel organization-SPMO
-A
					 licensed entity, other than a licensed racing entity, that offers and accepts
					 pari-mutuel wagers. A person or entity that provides to a licensed racing
					 entity hardware, software, equipment, content or services used to manage,
					 conduct, operate or record pari-mutuel wagering activity by or from residents
					 of this Commonwealth shall not be deemed to be a secondary pari-mutuel
					 organization solely by virtue of the provision of the assets or
					 services.
Simulcast
-Live video and audio
					 transmission of a race and pari-mutuel information for the purpose of
					 pari-mutuel wagering at locations other than the racetrack where the race is
					 run.
Standardbred horse racing or harness
					 racing
-A form of horse racing in which the horses participating are
					 attached "in harness" to a sulky or other similar vehicle and race at a
					 specific gait, either a trot or pace.
Substantial change in ownership
-The sale,
					 pledge, encumbrance, execution of an option agreement or another transfer of 5%
					 or more of the equity securities or other ownership interest of a person whose
					 percentage ownership affects the decisions of the licensed racing
					 entity.
Thoroughbred horse racing
-The form of
					 horse racing in which each participating horse is mounted by a jockey, is duly
					 registered with The Jockey Club of New York and engages in horse racing on the
					 flat, which may include a steeplechase or hurdle race.
Totalisator
-A computer system used to pool
					 wagers, record sales, calculate payoffs and display wagering data on a display
					 device that is located at a pari-mutuel facility or nonprimary
					 location.