BILL NUMBER:S7019

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 effectiveness thereof

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this legislation is to provide continued revenue to the
New York State Thoroughbred Breeding and 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, 2014. Specifically, the
following provisions would be extended for an additional year:

*require 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%);

*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 (6%); and

*administrative allotments from the fund would be increased from four
percent (4%) up to five percent (5%).

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, Chapter 423 of
the Laws of 2012 and Chapter 120 of the Laws of 2013 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:

2013: Similar to Chapter 120 of the Laws of 2013 (A.6939/S.4750).
2012: Similar to Chapter 423 of the Laws of 2012 (A.10295/S.7050).
2011: Similar to Chapter 175 of the Laws of 2011 (A.7852-A/S.3949-B).
2010: Similar to Chapter 473 of the Laws of 2010 (A.11130-A/S.7578-A).

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.