BILL NUMBER: S3579

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:

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:
              

(1) requiring payments to be made to the fund on a quarterly basis;

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

(3) 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

(4) 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 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.

 
LEGISLATIVE HISTORY:

2023/24 - S.8441 Signed Chapter.325

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.