(a) Procedure and terms.--
(1) After January 1, 2017, a person seeking a license to conduct horse race meetings at which pari-mutuel wagering is permitted or seeking to renew the license shall file an application or renewal application with the commission in the manner prescribed by the commission. A license to conduct horse race meetings shall be issued for a period of three years.
(2) A licensed racing entity shall have the privilege to conduct a horse race meeting at which pari-mutuel wagering is permitted. A license to conduct a horse race meeting shall not be a property right and may not be used as collateral or be encumbered.
(3) The commission may revoke or suspend the license of a licensed racing entity if the commission finds that the licensed racing entity, or its owners, officers, managers or agents, have not complied with this chapter and regulations promulgated in accordance with this chapter.
(4) A licensed racing entity may not transfer a license without the approval of the commission.
(b) Conditions.--Each horse racing license shall be issued and remain in effect if the licensed racing entity complies with each condition, rule and regulation of the commission and the provisions of this chapter, including the following conditions:
(1) A horse race meeting at which pari-mutuel wagering is conducted shall be regulated by the commission.
(2) The conduct of pari-mutuel wagering shall also be regulated by the Department of Revenue.
(3) The licensed racing entity shall print in its racing programs the procedure for filing a complaint with the commission.
(c) Applications.--Applications to conduct horse race meetings shall be in the form prescribed by the commission and shall contain information as the commission may require.
(d) Fee.--An applicant or licensee seeking to conduct a horse race meeting or seeking renewal of a license shall pay to the commission a fee of $50,000. Notwithstanding the foregoing, a licensed racing entity that holds more than one horse race meeting license shall pay no more than $50,000 upon renewal of the licenses. The license or renewal fee shall be deposited into the State Racing Fund.
(e) Action on licenses.--The following shall apply:
(1) The commission shall be prohibited from issuing a license to conduct a horse race meeting at which pari-mutuel wagering is permitted to an individual or applicant or an owner, officer, director or manager of the applicant who has been convicted of:
(i) A felony in any jurisdiction.
(ii) A misdemeanor gambling offense in any jurisdiction, unless 15 years has elapsed from the date of conviction.
(iii) Fraud or misrepresentation in any jurisdiction related to horse racing or horse breeding, unless 15 years has elapsed from the date of conviction.
(iv) An offense under 18 Pa.C.S. Ch. 55 Subch. B (relating to cruelty to animals).
(v) An offense related to fixing or rigging horse races, including 18 Pa.C.S. § 4109 (relating to rigging publicly exhibited contest) or 7102 (relating to administering drugs to race horses), or any similar crime in another jurisdiction, unless the conviction has been overturned on appeal under the laws of the jurisdiction of the original finding or a pardon has been issued.
(2) Following expiration of any period applicable to an applicant under paragraph (1)(ii) or (iii), in determining whether to issue a horse racing license to an applicant, the commission shall consider the following factors:
(i) The individual or a principal of the applicant's position with the applicant.
(ii) The nature and seriousness of the offense or conduct.
(iii) The circumstances under which the offense or conduct occurred.
(iv) The age of the applicant when the offense or conduct occurred.
(v) Whether the offense or conduct was an isolated or a repeated incident.
(vi) Any evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendations of persons who have substantial contact with the applicant.
(3) If, in the judgment of the commission, the applicant has demonstrated by clear and convincing evidence that the participation of the applicant in horse racing or related activities is not:
(i) inconsistent with the public interest or best interests of horse racing;
(ii) interfering with the effective regulation of horse racing; or
(iii) creating or enhancing the danger of unsuitable, unfair or illegal practices, methods or activities in the conduct of horse racing.
(f) Denial, suspension or revocation.--The commission may deny an application for a license or revoke, suspend or fail to renew the license of any applicant or licensed racing entity if the commission finds by a preponderance of the evidence that:
(1) The applicant or licensed racing entity, or any of its owners, officers, director, managers, employees or agents:
(i) Has not complied with the conditions, rules, regulations and provisions of this 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 been convicted of a crime involving moral turpitude.
(v) Has been convicted of a misdemeanor gambling offense in any jurisdiction.
(vi) Has been convicted in any jurisdiction of fraud or misrepresentation related to horse racing or horse breeding.
(2) The applicant or licensed racing entity does not have the use of a racetrack or racetrack enclosure in accordance with the provisions of 4 Pa.C.S. Pt. II (relating to gaming).
(3) The licensed racing entity has commingled horsemen's organization funds in violation of section 9345(c) (relating to commingling) or has refused to place on deposit a letter of credit under section 9346 (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 licensee has been convicted in any jurisdiction of an offense related to fixing or rigging horse races, including 18 Pa.C.S. § 4109 or 7102, or any similar crime in another jurisdiction, unless the conviction has been overturned on appeal under the laws of the jurisdiction of the original finding or a pardon has been issued.
(g) Cessation.--If a revocation or failure to renew a license under subsection (e) occurs, the licensee's authorization to conduct previously approved activity shall immediately cease, subject to 2 Pa.C.S. (relating to administrative law and procedure). In the case of a suspension, the licensee's authorization to conduct previously approved activity shall immediately cease until the commission has notified the licensee that the suspension is no longer in effect. After request for a hearing by a licensee, the commission may grant a supersedeas, pending the final determination of the suspension.
(h) Renewal.--A horse race meeting license shall be renewed every three years upon application and, except as provided for under subsection (a)(4), shall not be transferred. Renewals of horse race meeting licenses shall not be granted automatically.
(i) Conditional licenses.--Pending a final determination under this section, the commission may issue a conditional license upon the terms and conditions as are necessary to effectuate the provisions of this chapter.
(j) Compliance.--Nothing in this section shall be construed to relieve a licensed racing entity of its duty to comply with the requirements of 4 Pa.C.S. Pt. II.