BILL NUMBER:S3424

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, 2015. 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, Chapter 120 of the Laws of 2013 and
Chapter 168 of the Laws of 2014 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:  2014: Similar to Chapter 168 of the Laws
of 2014 (A.9410/S 7019) 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.