Extends certain provisions relating to the New York state thoroughbred breeding and development fund

BILL NUMBER:S7050

Title of bill

An act to amend chapter 473 of the laws of 2010 amending the racing, pari-mutuel wagering and breeding law relating to the New York state thoroughbred breeding and development fund, in relation to the effec- tiveness thereof

Purpose or general idea of bill

The purpose of this legislation is to provide continued revenue to the New York State Thoroughbred Breeding & Development Fund.

Summary of specific provisions

This bill would amend Chapter 473 of the laws of 2010 amending the racing, pari-mutuel wagering and breeding law relating to the New York state thoroughbred breeding and development fund. This section of law is scheduled to sunset on October 28, 2012. Specifically, the following provisions would be extended for an additional year:

o required payments to be made to the fund on a quarterly basis; o the percentage of revenue that can be allotted to breeder awards would be maintained at 65 percent; o amount of money used for promoting the breeding and raising of thoroughbred horses would be increased by one percent to an amount up to six percent; and o administrative allotments from the fund would be increased from 4 percent up to 5 percent.

Justification

The New York State Thoroughbred Breeding and Development Fund, established in 1973, has helped shape the New York State thoroughbred industry, 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 incentive 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, especially 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.

Initially enacted as Chapter 473 of the Laws of 2010, this proposal provided some flexibility to the Thoroughbred Breeding and Development Fund. This law was slated to expire upon the commencement of the operation of a video lottery facility at Aqueduct racetrack, which began operations on October 28, 2011. Chapter 175 of the Laws of 2011 extended that sunset by one year. This proposal would extend those provisions for an additional year and provide the Board of Directors of the Thoroughbred Breeding Fund the ability to allot Fund revenue based on the current state of the thoroughbred industry. Additionally, this proposal is strictly a housekeeping modification that has no financial impact on any other organization or segment of the industry.

Prior legislative history

2010: Similar to Chapter 473 of the Laws of 2010 (A.11130A/S.7578A) 2011: Similar to Chapter 175 of the Laws of 2011 (A.7852A/S.3949B)

Fiscal implications

None.

Effective date

Immediately.