Relates to the New York state thoroughbred breeding and development fund

Summary of specific provisions

Section one of the bill amends paragraph a of subdivision 1 and para- graphs a, e, and f of subdivision two of section 254 of the racing, pari-mutuel wagering and breeding law to require payments to be made to the fund on a quarterly basis.

In addition, section one increases the percentage of revenue that can be allotted to breeder awards from fifty percent, up to 65 percent.

The amount of money used for promoting the breeding and raising of thoroughbred horses is also increased by one percent to an amount up to six percent.

Finally, administrative allotments from the fund are increased from 4 percent up to 5 percent.

Section two is the effective date. This act is deemed repealed upon commencement of operation of the VLT facility at Aqueduct racetrack.

Justification

The New York State Thoroughbred Breeding and Development Fund, estab- lished in 1973, has helped shape the New York State thoroughbred indus- try, making it the benchmark of thoroughbred programs around the world. For over two decades, the Fund has worked to make thoroughbred breeding and racing a vital force in New York State's economy, utilizing its rich racing tradition, vast agricultural resources, and thriving tourism industry. The Fund is a public benefit corporation that oversees the registration process for foals and stallions, and distributes incentives awards to breeders, owners, and stallion owners. The incentives provided by the Fund are financed from within the racing industry, using a small percentage of the total monies wagered through the pari-mutuel system on thoroughbred racing in New York State.

Thoroughbred Breeders use this funding to invest back into breeding, thereby keeping that money in the local economy and creating more jobs, and strengthening the horse racing industry in New York.

The New York Racing and Breeding Program has evolved significantly since 1973. The goals set out for the Fund have been well accomplished, espe-

cially in the last decade. However, the industry has seen significant declines in handle year after year. With that, the Fund's revenue has rapidly fallen each year placing a burden on the ability to pay awards to participants at advertised rates within the statutory cap as the Breeding Program has grown. Additionally, Governmental Accounting Stand- ards Board (GASB 45) regulations have required the Fund to account for administrative costs years ahead. Therefore, the Board of Directors of the Thoroughbred Breeding Fund require the ability to allot Fund revenue based on the current state of the Thoroughbred industry. To do so, the statutory limitations on Fund allocations need further room for growth to accommodate awards earned and revenue at hand to the Fund. This is a housekeeping modification that has no financial impact on any other organization or segment of the industry.

NY Thoroughbred Breeders are a key sector of New York's agricultural economy, which is the number one agri-business for New York. Thorough- bred Breeders have a significant, positive impact on the upstate economy by providing jobs, protecting open space, preserving property values and contributing to the overall state and local economies. Thoroughbred breeders play a central role in strengthening New York's horse racing industry by helping maintain the highest levels of racing, and producing superior quality thoroughbreds. New York thoroughbred farms range from large commercial facilities to smaller family owned operations, who are struggling to make ends meet. New York is home to over 400 thoroughbred breeding farms utilizing 43,000 acres of working landscape or "green space." Spending by suppliers and employees generates additional jobs in New York for a total employment impact of over 35,000 agribusiness jobs.

Prior legislative history

This is a new bill.

Fiscal implication

None to the state.

Effective date

Immediately.