CHAPTER 414

FORMERLY

HOUSE BILL NO. 745

AS AMENDED BY HOUSE AMENDMENT NOS. 1 AND 2

AN ACT TO AMEND TITLES 3, 29 AND 30 OF THE DELAWARE CODE RELATING TO THE HARNESS RACING COMMISSION AND THOROUGHBRED RACING COMMISSION AND ENFORCEMENT AND COLLECTION POWERS TO THE DIVISION OF REVENUE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):

Section 1. Amend Section 10007, Title 3, of the Delaware Code, by deleting Section 10007 in its entirety and by adding the following in lieu thereof:

"§ 10007. Employees.

(a) The Commission may appoint such officers, clerks, stenographers, inspectors, racing officials, veterinarians, and such other employees as it deems necessary, consistent with the purposes of this chapter. The Commission for the purpose of maintaining integrity, and honesty in racing shall prescribe by administrative regulation the powers and duties of the persons employed under this section and qualifications necessary to competently perform these duties.

(b) In addition to any minimum qualifications promulgated by the Commission, all applicants for the position of steward or race judge must be certified by a national organization approved by the Commission. An applicant for the position of steward or race judge must also have been previously employed as a steward, patrol judge, or other racing official at a harness racing meeting for a period of not less than forty-five days during three of the past five years, or have at least five years of experience as a licensed driver who has also served not less than one year as a licensed racing official at a harness racing meeting, or have ten years of experience as a licensed harness racing trainer who has also served not less than one year as a licensed racing official at a harness racing meeting.

(c) The Commission may appoint a racing inspector or investigator for each harness racing meet. Such racing inspector shall perform all duties prescribed by the Commission consistent with the purposes of this chapter. Such racing inspector shall have full and free access to the books, records, and papers pertaining to the pari-mutuel system of wagering and to the enclosure or space where the pari-mutuel system is conducted at any harness racing meeting to which the racing inspector shall be assigned to the purpose of ascertaining whether the holder of such permit is operating in compliance with the Commission's rules and regulations. The racing inspector shall investigate whether such rules and regulations promulgated by the Commission are being violated at such harness racetrack or enclosure by any licensee, patron, or other person. Upon discovering any such violation, the racing inspector shall immediately report his or her findings in writing and under oath to the Commission or its designee as it may deem fitting and proper. The racing inspector or investigator shall devote his full time to the duties of his office and shall not hold any other position or employment, except for performance of similar duties for the Thoroughbred Racing Commission.

(d) All employees appointed under subsections (a-c) of this section shall serve at the pleasure of the Commission and are to be paid a reasonable compensation. No person shall be appointed to hold any such office or position who holds any official relation to any person, association, or corporation engaged in or conducting harness horse racing within the State. The full compensation of the presiding judge, associate judges, and track veterinarian and no more than that portion of the compensation of the state steward paid by the licensed persons or association as of June 30, 1998 shall be paid by the Commission subject to pro rata reimbursement by the licensed persons or associations conducting harness racing meets under this chapter. Increases in costs of the aforementioned officials shall be reasonable and related to expansion in the number of days of racing and the number of races held, the need to maintain competitive salaries, and inflation. The Commission shall determine and insure that such employees perform their duties in the public interest. No Commissioner, racing official, steward or judge whose duty is to insure that the rules and regulations of the Commission are complied with shall bet on the outcome of any race regulated by the Commission or have any financial or pecuniary interest in the outcome of any race regulated by the Commission.

(e) The Commission may employ an Administrator of Racing who shall perform all duties prescribed by the Commission consistent with the purposes of this chapter. The Administrator of Racing shall be appointed by the Governor after consideration of candidates jointly submitted by the Harness Racing Commission and the Thoroughbred Racing Commission. The Administrator of Racing shall devote his full time to the duties of the office and shall not hold any other office or employment, except that he can perform the same duties as Administrator of Racing for the Thoroughbred Racing Commission. The Administrator of Racing shall be the representative for the Commission at all race meetings. The Administrator of Racing shall attend all meetings of the Commission and shall keep a complete record of its proceedings and preserve, at its general office, all books, maps, documents, and papers entrusted to its care. The Administrator of Racing shall be the executive officer of the Commission and shall be responsible for keeping all Commission records and carrying out the rules and orders of the Commission. The Commission may appoint the Administrator of Racing to act as a hearing officer to hear appeals from administrative decisions of the steward or racing judges. "

Section 2. Amend Section 10029, Title 3 of the Delaware Code by adding thereto a new subsection designated as subsection (g), which new subsection shall read as follows:

"(g) The Commission shall promulgate administrative regulations for effectively preventing the use of improper devices, the administration of drugs or stimulants or other improper acts for the purpose of affecting the speed or health of horses in races in which they are to participate. The Commission is also authorized to promulgate administrative regulations for the legal drug testing of licensees. The Commission is authorized to contract for the maintenance and operation of a testing laboratory and related facilities, for the purpose of saliva, urine, or other tests for enforcement of the Commission's drug testing rules and regulations. The licensed persons or associations conducting harness racing shall reimburse the Commission for all costs of the drug testing program established pursuant to this section. Increases in costs of the aforementioned testing program shall be reasonable and related to expansion in the number of days of racing and the number of races held, the need to maintain competitive salaries, and inflation. The Commission may not unreasonably expand the drug testing program beyond the scope of the program in effect as of June 10, 1998. Any decision by the Commission to expand the scope of the drug testing program that occurs after an administrative hearing, at which the persons or associations licensed under section 10022 of this Title consent to such expansion, shall not be deemed an unreasonable expansion for purposes of this section. The Commission, in addition to the penalties contained in § 10026 of this Title, may impose penalties on licensees who violate the drug testing regulations including imposition of fines or assessments for drug testing costs. By January 1, 1999, the Commission shall present recommendations to the General Assembly regarding the implementation of additional penalties, including forfeiture of horses, which may be imposed on a licensee whose horse tests positive for illegal drugs,"

Section 3. Amend Chapter 100, Title 3 of the Delaware Code by adding thereto a new section, designated as Section 10061, which new section shall read as follows:

"§ 10061. Tax Enforcement.

The Director of the Division of Revenue shall enforce the administration of taxes provided for in §§ 10024 and W056 of this Title, or any other applicable section of this chapter"

Section 4. Amend Section 10107, Title 3 of the Delaware Code by deleting Section 10107 in its entirety and adding the following new section in lieu thereof:

"§ 10107. Employees.

(a) The Commission may appoint such officers, clerks, stenographers, inspectors. racing officials, veterinarians, and such other employees as it deems necessary, consistent with the purposes of this chapter. The Commission for the purpose of maintaining integrity and honesty in racing shall prescribe by administrative regulation the powers and duties of the persons employed under this section and qualifications necessary to competently perform those duties.

(b) In addition to any minimum qualifications promulgated by the Commission, all applicants for the position of steward or race judge must be certified by a national organization approved by the Commission. An applicant for the position of steward or race judge must also have been previously employed as a steward, patrol judge, clerk of scales or other racing official at a thoroughbred racing meeting for a period of not less than forty-five days during three of the past five years, or have at least five years of experience as a licensed jockey who has also served not less than one year as a licensed racing official at a thoroughbred racing meeting, or have ten years of experience as a licensed thoroughbred racing trainer who has also served not less than one year as a licensed racing official at a thoroughbred racing meeting.

(c) The Commission may appoint a racing inspector or investigator for each thoroughbred racing meet. Such racing inspector shall perform all duties prescribed by the Commission consistent with the purposes of this chapter. Such racing inspector shall have full and free access to the books, records, and papers pertaining to the pari-mutuel system of wagering and to the enclosure or space where the pari-mutuel system is conducted at any thoroughbred racing meeting to which he shall be assigned for the purpose of ascertaining whether the holder of such permit is operating in compliance with the Commission's rules and regulations. The racing inspector shall investigate whether such rules and regulations promulgated by the Commission are being violated at such thoroughbred race track or enclosure by any licensee, patron, or other person. Upon discovering any such violation, the racing inspector shall immediately report his or her findings in writing and under oath to the Commission or its designee as it may deem fitting and proper. The racing inspector or investigator shall devote his full time to the duties of his office and shall not hold any other position or employment, except for performance of similar duties for the Harness Racing Commission.

() All employees appointed under subsections (a-c) of this section shall sere at the pleasure of the Commission and are to be paid a reasonable compensation. No person shall be appointed to or hold any such office or position who holds any official relation to any person, association, or corporation engaged in or conducting thoroughbred racing within this State. The compensation of the stewards and track veterinarian shall he paid by the Commission subject to pro rata reimbursement by the licensed persons or associations conducting thoroughbred racing meets under this chapter. Increases in costs of the aforementioned officials shall be reasonable and related to expansion in the number of days of racing and the number of races held, the need to maintain competitive salaries, and inflation. No Commissioner, racing official, steward or judge whose duty is to insure that the rules and regulations of the Commission are complied with shall het on the outcome of any race regulated by the Commission or have any financial or pecuniary interest in the outcome of any race regulated by the Commission.

(e) The Commission may employ an Administrator of Racing who shall perform all duties prescribed by the Commission consistent with the purposes of this chapter. The Administrator of Racing shall be appointed by the Governor after consideration of candidates jointly submitted by the Harness Racing Commission and the Thoroughbred Racing Commission. The Administrator of Racing shall devote his full time to the duties of the office and shall not hold any other office or employment, except that he can perform the same duties as Administrator of Racing for the Harness Racing Commission. The Administrator of Racing shall be the representative for the Commission at all meetings of the Commission and shall keep a complete record of its proceedings and preserve, at its general office, all books, maps, documents, and papers entrusted to its care. He shall be the executive officer of the Commission and shall be responsible for keeping all Commission records and carrying out the rules and orders of the Commission. The Commission may appoint the Administrator of Racing to act as a hearing officer to hear appeals from administrative decisions of the steward or racing judges."

Section 5. Amend Section 10128, Title 3 of the Delaware Code by adding thereto a new subsection, designated as subsection (n), which new subsection shall read as follows:

"(n) The Commission shall promulgate administrative regulations for effectively preventing the use of improper devices, the administration of drugs or stimulants or other improper acts for the purpose of affecting the speed or health of horses in races in which they are to participate. The Commission is also authorized to promulgate administrative regulations for the legal drug testing of licensees. The Commission is authorized to contract for the maintenance and operation of a testing laboratory and related facilities, for the purpose of saliva, urine, or other tests for enforcement of the Commission's drug testing rules and regulations. The licensed persons or associations conducting thoroughbred racing shall reimburse the Commission for all costs of the drug testing programs established pursuant to this section. Increases in costs of the aforementioned testing program shall be reasonable and related to expansion in the number of days of racing and the number of races held, the need to maintain competitive salaries, and inflation. The Commission may not unreasonably expand the drug testing program beyond the scope of the program in effect as of June 30, 1998. Any decision by the Commission to expand the scope of the drug testing program that occurs after an administrative hearing, at which the persons or associations licensed under § 10121 of this Title consent to such expansion, shall not be deemed an unreasonable expansion for purposes of this section. The Commission, in addition to the penalties contained in § 10125 of this Title, may impose penalties on licensees who violate the drug testing regulations including imposition of fines or assessments for drug testing costs. By January I, 1999, the Commission shall present recommendations to the General Assembly regarding the implementation of additional penalties, including forfeiture of horses, which may be imposed on a licensee whose horse tests positive for illegal drugs."

Section 6. Amend Chapter 101, Title 3 of the Delaware Code by adding thereto a new section, designated as section 10170, which new section shall read as follows:

"§ 10170. Tax Enforcement.

The Director of the Division of Revenue shall enforce the administration of taxes provided for in this chapter in sections 10123, 10165, or any other applicable section of this chapter."

Section 7. Amend Section 563, Title 30 of the Delaware Code by adding a new subsection, designated as subsection (d), which new subsection shall read as follows:

"(d) The Director of the Division of Revenue shall enforce the administration of taxes provided for in title 3, chapters 100 and 101."

Section 8. Amend Section 4815(b)(2), Title 29 of the Delaware Code by inserting immediately after the phrase "and third," the phrase "costs of the Administrator of Racing and racing inspectors referenced in Chapters 100 and 101 of Title 3; and fourth,".

Approved July 13, 1998