CHAPTER 119

AN ACT TO AMEND TITLE 28 OF THE DELAWARE CODE, BY ADDING THERETO A NEW CHAPTER PROVIDING FOR THE GRANTING OF LICENSES TO CONDUCT HORSE RACING MEETS IN KENT COUNTY DURING EITHER DAYLIGHT OR EVENING HOURS, OR BOTH, ON A TRACK NO LESS THAN FIVE-EIGHTHS OF A MILE IN CIRCUMFERENCE, PROVIDING FOR THE PAYMENT OF TAXES THEREON, PROVIDING CERTAIN REGULATORY PROVISIONS AND PENALTIES THEREFOR, AUTHORIZING WAGERING OR BETTING BY PARI-MUTUEL MACHINES OR TOTALIZATORS, AND PLACING THE ISSUANCE AND CONTROL OF SUCH LICENSES WITHIN THE AUTHORITY AND JURISDICTION OF THE DELAWARE RACING COMMISSION.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Title 28 of the Delaware Code, is hereby amended by adding thereto a new chapter, to be designated as Chapter 4 thereof, to read as follows :

SUBCHAPTER I. LICENSE TO CONDUCT

RACING MEET; TAXES

§401. Authority for horse racing in Kent County on five-eighths mile track

Horse racing for stake, purse or reward at and upon a race track of no less than five-eighths of a mile in circumference may be conducted in Kent County in this State subject to the provisions of this chapter. Such horse racing may be conducted during either daylight or evening hours, or both.

§402. License as required

Any person desiring to conduct horse racing for any stake, purse or reward in Kent County in this State during any calendar year, shall first obtain a license to do so from the Delaware Racing Commission.

§403. Application; rejection; award of dates and maximum racing days

(a) Any person, desiring to conduct a horse racing meet within Kent County in this State during any calendar year shall file an application with the secretary of the Commission on or before a day to fixed by the Commission. The application shall specify the days on which such racing is desired to be conducted, and shall be in such form and supply such data and information, including a blueprint of the track and specifications of its surface and blueprints and specifications of buildings and grandstand on the land where the meet is to be conducted, as the Commission prescribes; provided, however, that it shall not be necessary for the applicant to submit blueprints and specifications with the application if the race meet for which a license is requested to be conducted at a track for which the Commission granted a license the preceding year.

The blueprints and specifications shall be subject to the approval of the Commission, which, at the expense of the applicant, may order such engineering examination thereof as to the Commission seems necessary. The erection and construction of the track, grandstand and buildings of any applicant for a license to conduct horse racing under this chapter, shall be subject to the inspection of the Commission, which may order such engineering examination as the Commission deems necessary at the expense of the applicant, and may employ such inspectors as the Commission considers necessary for that purpose.

(b) The Commission may reject any application for a license for any cause which it deems sufficient and the action of the Commission shall be final.

(c) The Commission shall, on or before the 15th day of January of each year, award all dates for horse racing in Kent County in this State within the current year, but the dates so awarded shall not exceed 55 days in the aggregate and all such dates shall be awarded during the months of February, March and April. The decision of the Commission on the award of all dates shall be final.

(d) No more than two horse racing meets shall be held in Kent County in any one year.

(e) The Commission may meet subsequently to the 15th day of January of each year and award dates for horse racing within the limits provided in this section on application submitted to it, provided that the clays so awarded in no way conflict with any other provision of this chapter.

(f) No license to conduct horse racing under the provisions of this section shall be granted except to a private stock corporation formed and existing under the laws of the State of Delaware for the purpose of conducting horse racing and businesses incident thereto, in compliance with the following conditions and requirements:

(1) Before a license shall be issue under the provisions of this chapter, the applicant shall file with the Commission, in addition to other requirements of this chapter, the names, addresses and the terms of office of its directors and officers and at such other time or times thereafter as they may be changed, the names and addresses of such directors and officers; a copy of the certificate of incorporation duly certified by the Secretary of the State of Delaware, and a copy of its by-laws. Such applicant shall file with the Commission a copy of any amendment to its certificate of incorporation, duly certified as aforesaid, within 10 days after the effective date of any such amendment.

(2) The Board of Directors of the applicant shall not be less than five in number;

(3) The applicant shall have no other office except in the State of Delaware;

(4) Every applicant for a license shall file with the Commission at the time of application for a license a statement of its resources and liabilities. The Commission shall have access at all times to the books, records and accounts of the licensee;

(0) No license shall be issued unless a majority of the Board of Directors and officers shall be bone fide residents of the State of Delaware.

§404. Application fee and license fee

Any person, upon applying to the Commission for a license to conduct a horse racing meet pursuant to this chapter during any calendar year, shall, at the time of making the application, pay to the Commission, a fee of $500.

Any person, who is granted a license by the Commission to conduct a horse racing meet pursuant to this chapter during any calendar year, shall at the time the license is granted, pay to the Commission an additional fee of $250.

§405. Issuance

Upon the award of days to any applicant, the Commission shall issue a license for the holding of the meet or meets during the dates awarded to the applicant. The license shall be subject to all rights, regulations and conditions from time to time prescribed by the Commission.

§406. Suspension or revocation; appeal

Any license issued by the Commission shall be subject to suspension or revocation by the Commission for any cause whatsoever which the Commission deems sufficient. If any license is suspended or revoked, the Commission shall state publicly its reasons for so doing and cause an entry of the reasons to be made on the minute book of the Commission, and its action shall be final. The propriety of such action shall be subject to review, upon questions of law only, by the Superior Court of Kent County. The action of the Commission shall stand unless and until reversed by the Court.

§0. Rules of Jockey Club and of National Steeple Chase and Hunt Association

Every license issued under this chapter shall contain a condition that all running races or racing meets conducted thereunder shall be subject to the reasonable rules and regulations, from time to time prescribed by the Jockey Club, a corporation organized under the laws of the State of New York, and that all steeplechase races, or steeplechases shall be subject to the reasonable rules and regulations from time to time prescribed by the National Steeple Chase and Hunt Association, a corporation organized under the laws of the State of New York. Any rule or regulation of the Jockey Club or National Steeple Chase and Hunt Association may be modified or abrogated by the Commission, upon giving the Jockey Club or National Steeple Chase and Hunt Association an opportunity to be heard.

§408. Inspection of racing premises prior to meet

Not less than 5 days prior to the opening of any meet authorized by the Commission, the Commission, at the expense of the licensee for the meet, shall cause to be made an inspection of the track, grandstand and buildings where the meet is to be held, and unless the track, grandstand and buildings where the meet is to be held are found to be safe for animals and persons, or are rendered safe prior to the opening of the meet, the license for the meet shall be withdrawn.

§0. Rules, regulations and special powers of Commission

(a) The Commission may make rules governing, restricting or regulating the rate or charge by a licensee for admission, or for the performance of any service, or the sale of any article on the premises of a licensee.

(b) All proposed extensions, additions or improvements to the buildings, stables or improvements on tracks or property owned or leased by a licensee under this chapter, shall be subject to the approval of the Commission.

The Commission may compel the production of any and all books, memoranda, or documents showing the receipts and disbursements of any person licensed under the provisions of this chapter to conduct racing meets.

(c) The Commission may at any time require the removal of any employee or official employed by any licensee hereunder.

(d) The Commission may require that the books, records and financial or other statements of any person, licensed under the provisions of this chapter, shall be kept in such form or in such manner as the Commission prescribes. The Commission may visit, investigate, and place expert accountants and such other persons as it deems necessary, in the offices, tracks, or places of business of any such person for the purpose of ratifying itself that the Commission's rules and regulations are strictly complied with. The salaries and expenses of such expert accountants or other persons shall be paid by the person to whom they are assigned.

(e) The Commission may issue, under the hand of any Commissioner and the seal of the Commission, subpoenas for the at-

tendance of witnesses and the production of books, papers and documents, before the Commission, and may administer oaths or affirmations to the witnesses whenever in the judgment of the Commission it is necessary for the effectual discharge of its duties. If any person refuses to obey any subpoena, or to testify, or to produce any books, papers or documents, then the Commission may apply to the Superior Court of Kent County, and thereupon, the Court shall issue its subpoena requiring the person to appear and to testify, or to produce the books, papers and documents. Whoever fails to obey or refuses to obey a subpoena of the Court shall be guilty of contempt of court, and shall be punished accordingly. False swearing on the part of any witness shall be deemed perjury and shall be punished as such.

§410. Licensee's annual financial statement

Every licensee shall file with the Commission not later than four months after the close of its fiscal year a statement, duly certified by an independent public accountant, of its receipts from all sources whatsoever during the fiscal year and of all expenses and disbursements, itemized in the manner and form directed by the Commission, showing the net revenue from all sources derived by the licensee during the fiscal year covered by such statement.

§0. Tax on admissions; inspection of licensee's records

(a) Every person licensed to hold a horse racing meet within Kent County in this State shall pay to the Commission a tax of 10 cents on each admission on each day of any such meet, excepting admissions of persons performing any duty or work in connection with the holding of the meet and excepting admissions of spouses of jockeys, owners and trainers of horses participating in the meet. The licensee may collect such amount from each ticket holder in addition to the amount charged for the ticket of admission.

(b) Accurate records and books shall at all times be kept and maintained by the licensee showing the number of admissions, employees of the licensee and spouses of jockeys, owners and trainers of horses excepted, on each racing day of each horse racing meet. The Commission, or its duly authorized representative shall at all reasonable times have access to the admission

records of any licensee for the purpose of examining and checking the same, an_d ascertaining whether or not the proper amount has been, or is being, paid the State. The Commission may also, from time to time, require sworn statements of the number or numbers of such admissions and prescribe blanks upon which the reports shall be made.

SUBCHAPTER II. REGULATORY PROVISIONS,

OFFENSES AND PENALTIES

§421. Application of chapter

This chapter shall apply to horse races upon which wagering or betting is conducted in accordance with subchapter III of this chapter. No part of this chapter shall be construed to apply to harness horse racing or harness horse races and/or dog racing or clog races.

§422. Liability insurance of licensee

Ten days before any horse racing meet may be held under this chapter, those licensed to conduct the meet shall deposit with the Commission, a policy of insurance against personal injury liability which may be sustained at the meet. The insurance shall be in an amount approved by the Commission, with premium prepaid.

§423. Limitation on compensation that may be paid by licensee

No salary, fee or compensation exceeding the sum of $2,000 shall be paid in any calendar year by any person licensed under this chapter, except to officials or employees actively engaged in the operations incident to the holding of the racing meet or in the maintenance of the racing plant.

§424. Enforcement

All officers of the law shall cooperate with the Commission for the proper enforcement of this chapter.

§421. Aiding or abetting unlicensed meet; penalty

Whoever aids or abets in the conduct of any meet within Kent County in this state at which horse racing or horse races

are permitted for any stake, purse or reward, and upon which wagering or betting is conducted as provided in this chapter, except in accordance with a license duly issued and unsuspended or unrevoked by the Commission, shall be fined not less than $500 and not more than $10,000 for each day of such unauthorized meeting, or imprisoned.

§426. Failure of licensee to pay tax on admissions; penalty

(a) Whoever, being a licensee, fails or refuses to pay the amount found to be due by the Commission as the tax on admissions shall be fined not more than $25,000 in addition to the amount due the Commission.

(b) All fines up to the amount found to be due the Commission and paid into court by a licensee found guilty of violating this section, shall be transmitted and paid over by the clerk of the court to the Commission.

SUBCHAPTER III. WAGERING OR BETTING BY

PARI-MUTUEL MACHINES OR TOTALIZATORS

§441. Place for wagering

Within the enclosure of any horse racing meet licensed and conducted under this chapter, but not elsewhere, the wagering and betting on horse racing by the use of pari-mutuel machines or totalizators is authorized and permitted.

§442. License to conduct pools, application; qualifications

(a) The Commission may grant a license to any person to make, conduct and sell pools by the use of pari-mutuel machines or totalizators for the purpose of receiving wagers or bets on horse races within the enclosure of any horse racing meet licensed and conducted under this chapter, but not otherwise, under such regulations as the Commission prescribes.

(b) The Commission may prescribe regulations governing the granting of applications for licenses, the granting of licenses, and the conditions under which any licensee may conduct, sell or make any such pool.

The qualifications of any licensee shall be such as to afford a reasonable belief that the licensee will be financially

responsible and will conduct the business of operating the pools in a proper and orderly manner. A licensee to make, conduct and sell such pools shall be a person licensed to conduct a horse racing meet under this chapter.

§443. Revocation of license

All licenses for the operation of pools as provided in this chapter shall be revocable at any time, without hearing, in the absolute discretion of the Commission.

§444. Rules, regulations and special powers of Commission

(a) The Commission may require the keeping of books and records by a licensee of a pool in such forms, or in such manner, as the Commission prescribes. The Commission may also regulate the duties of any employee of any such licensee, and visit, investigate, and place expert accountants and such other persons as it deems necessary in the office or place of business of any person licensed to operate a pool for the purpose of satisfying itself that the Commission's rules and regulations are strictly complied with.

() The Commission may also issue, under its hand and seal, subpoenas for the attendance of witnesses and production of books, papers and documents of the licensee, before the Commission, and may administer oaths or affirmations to the witnesses whenever in the judgment of the Commission it is necessary for the effectual discharge of its duties. If any person refuses to obey any subpoena, or to testify, or to produce any books, papers or documents, then the Commission may apply to the Superior Court of Kent County and thereupon the Court shall issue its subpoena requiring the person to appear and testify, or to produce the books, papers and documents before the Commission. Any person failing to obey or refusing to obey a subpoena of the Court is guilty of contempt of court and shall be punished accordingly. False swearing on the part of any witness shall be deemed perjury and shall be punished as such.

§445. Tax on pari-mutuel and totalizator pools

Every person engaged in the business of conducting a horse racing meet under this chapter shall pay as a tax to this State

41/2 per cent of the total contributions to all pari-mutuel and totalizator pools conducted or made on any and every race track licensed under this chapter and on every race at such track. The tax shall be paid by certified check and shall be transmitted by the licensee to the Commission. If the Commission finds it correct, it shall transmit the check to the State Treasurer.

§446. Licensee's commissions on pari-mutuel and totalizator pools

The Commission shall authorize as commissions on pari-mutuel or totalizator pools to the licensee operating a racing meet pursuant to this chapter, 121/ per cent of the total contributions to all pari-mutuel and totalizator pools conducted or made at the racing meet, and at every race at the meeting, plus the odd cents of all redistributions to be made on all pari-mutuel or totalizator pool contributions exceeding the sum equal to the next lowest multiple of five, such odd cents to be calculated upon the basis of each dollar wagered.

§447. Deduction of federal taxes from total of contributions

For the purpose of making any of the calculations of amounts payable to the State and to the licensee under sections 455 and 456 of this title, no federal taxes, if any, shall be deducted from the amount of total contributions before applying the percentage specified in those sections.

§448. Disposition of monies for unclaimed pari-mutuel tickets

All sums held by any licensee for payment of outstanding pari-mutuel tickets not claimed by the person or persons entitled thereto within a period of one year following the last day of the meet shall be paid by certified check to the Commission. If the Commission finds such payment correct it shall transmit the check to the State Treasurer.

SUBCHAPTER IV. JURISDICTION AND EFFECT

§461. Authority of Delaware Racing Commission

(a) The Delaware Racing Commission as created and existing under chapter 3 of this title shall have jurisdiction over horse

racing in Kent County in this State pursuant to the provisions of this chapter, and shall have authority to grant licenses therefor as herein provided.

(b) The word "Commission" as it appears in this chapter shall mean the Delaware Racing Commission as created and existing pursuant to chapter 3 of this title.

§462. Effect of chapter

No provision of this chapter shall in any way be construed to repeal any provision contained in chapter 3 of this title; provided, however, that where any provision of this chapter shall be in conflict with any provision of Chapter 3 of this title, the provisions of this chapter shall control with respect to horse racing in Kent County in this State.

Approved July 27, 1967.