BILL NUMBER: S2077

SPONSOR: ADDABBO
 
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 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.

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 goals 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. The sunset of this law has been
extended multiple times. This proposal would extend those provisions for
an additional year and provide the Board of Directors of the Thorough-
bred 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:

2022: Similar to Chapter 199 of the Laws of 2022

2021: Similar to Chapter 211 of the Laws of 2021

2020: Similar to Chapter 161 of the Laws of 2020

 
FISCAL IMPLICATIONS:

None to State.

 
EFFECTIVE DATE:
This act shall take effect immediately.