BILL NUMBER: S8441

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 PROVISIONS:

Section 1 of this bill 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 addi-
tional 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 of this bill provides the 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 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 flexi-
bility 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 Octo-
ber 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 Thoroughbred Breeding Fund the
ability to allot Fund revenue based on the current state of the
Thoroughbred industry. Additionally, this proposal is strictly a house-
keeping modification that has no financial impact on any other organiza-
tion 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 FOR STATE AND LOCAL GOVERNMENTS:

This bill will have no fiscal impact to the State or to local govern-
ments.

 
EFFECTIVE DATE:
This act shall take effect immediately.