§ 115-b. Market origin credits. 1. Notwithstanding any other provision
of law to the contrary, any racing associations and corporations,
franchised corporations, and off-track betting corporations that makes a
payment of the regulatory fees imposed by this chapter may reduce such
payment by an amount equal to the market origin credit allocated to such
racing association or corporation, franchised corporation, or off-track
betting corporation by the commission. The commission shall allocate
credits in an amount equal to ninety percent of the amount received from
the market origin fee paid pursuant to subdivision six of section one
thousand twelve-a of this chapter for the period from the sixteenth day
of the preceding month through the fifteenth day of the current month.
The commission shall notify participants of allocations on or before the
twentieth day of the current month.

2. The commission shall allocate credits to racing associations and
corporations, franchised corporations, and off-track betting
corporations in the following amounts:

a. Forty percent of the amount received from the market origin fee
paid pursuant to subdivision six of section one thousand twelve-a of
this chapter to regional off-track betting corporations. Allocations to
individual regional off-track betting corporations shall be made based
on a ratio where the numerator is the regional corporation's total
in-state handle for the previous calendar year as calculated by the
commission and the denominator is the total in-state handle of all the
regional off-track betting corporations for the previous calendar year
as calculated by the commission;

b. Fifty percent of the amount received from the market origin fee
paid pursuant to subdivision six of section one thousand twelve-a of
this chapter to the racing associations and corporations and franchised
corporations. Allocations to individual racing associations and
corporations and franchised corporations shall be made as follows:

(i) Sixty percent to thoroughbred racing associations and franchised
corporations. Five-sixths shall be allocated to a franchised corporation
and one-sixth shall be allocated to a thoroughbred racing association.

(ii) Forty percent to harness racing associations and corporations.
Allocations to individual harness racing associations and corporations
shall be made based on a ratio where the numerator is the association's
or corporation's total in-state handle on live racing for the previous
calendar year as calculated by the commission and the denominator is the
total in-state on live handle for all harness racing associations and
corporations for the previous calendar year as calculated by the
commission.

3. As a condition for any racing association or corporation or
franchised corporation to claim any market origin credits allocated to
it, such racing association or corporation or franchised corporation
must make payments for moneys otherwise to be used to pay the regulatory
fee as follows:

(i) Payment of an amount equal to forty percent of the allocated
credits into an account used solely for the purpose of enhancing purses
at such racing association or corporation or franchised corporation.
Such payment shall be made within five days from receipt of notification
of an allocation by the commission of an allocation of market origin
credits;

(ii) Payment of an amount equal to twenty percent of the allocated
credits to the state's breeding funds. Sixty percent of the payments to
the breeding funds shall be allocated to the New York state thoroughbred
breeding and development fund corporation established pursuant to
section two hundred fifty-two of this chapter, and forty percent to the
agriculture and New York state horse breeding development fund
established pursuant to section three hundred thirty of this chapter.
Such payment shall be made within five days from receipt of notification
of an allocation by the commission of an allocation of market origin
credits.

4. The commission shall promulgate any rules and regulations necessary
for the administration of the market origin credit.