Extend Horse Breeding Fund

1 Co-sponsor

• Daphne Jordan

Title of bill

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

Purpose or general idea of bill

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

Summary of specific provisions

Section 1.Amends Chapter 473 of the laws of 2010 relating to the New York state Thoroughbred Breeding and Development Fund. Specifically, the following provisions would be extended for an additional year:

*requiring payments to be made to the fund on a quarterly basis;

*the percentage of revenue that can'be allotted to breeder awards would be maintained at sixty-five percent (65%);

*the amount of money used for promoting the breeding and raising of thoroughbred horses would be increased from five percent (5%) up to six percent (6%); and

*the amount of money used for administrative allotments from the fund would be increased from four percent (4) up to five percent (5).

Section 2.Effective date.

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 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 opera- tion of a video lottery facility at Aqueduct racetrack, which began operations on October 28, 2011. The sunset of this law has been extended multiple times. This proposal would extend those provisions for an addi- tional 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

2018: Similar to Chapter 341 of the Laws of 2018 2017: Similar to Chapter 42 of the Laws of 2017 2016: Similar to Chapter 255 of the Laws of 2016

Fiscal implications

None to State.

Effective date

This act shall take effect immediately.