Assembly Bill A11130A

                                BILL NUMBER:A11130

TITLE  OF  BILL:    An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to the New York  state  thoroughbred  breeding
and development fund

Purpose  Or General Idea Of Bill:  This bill provides flexibility to the
thoroughbred breeding fund in an effort to help offset  major  decreases
in the amount of monies the fund takes in.

Summary  Of  Specific Provisions:   Section one of the bill amends para-
graph a of subdivision 1 and paragraphs a, e, and f of  subdivision  two
of  section  254 of the racing, pari-mutuel wagering and breeding law to
require payments to be made to the fund on a quarterly basis.

In addition, section one increases the percentage of revenue that can be
allotted to breeder awards from fifty percent, up to 65 percent.

The amount of money used for  promoting  the  breeding  and  raising  of
thoroughbred  horses is also increased by one percent to an amount up to
six percent.

Finally, administrative allotments from the fund are  increased  from  4
percent up to 5 percent. Section two is the effective date.

Justification:  The New York State Thoroughbred Breeding and Development
              

Fund, established in 1973, has helped shape the New York State thorough-
bred  industry,  making it the benchmark of thoroughbred programs around
the world. For over two decades, the Fund has worked to  make  thorough-
bred  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 distrib-
utes incentives 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, espe-
cially in the last decade. However, the industry  has  seen  significant
declines  in  handle  year  over 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. Additionally, Governmental Accounting Stand-
ards Board (GASB 45) regulations have required the Fund to  account  for
administrative costs years in ahead.  Therefore, the Board of Directors.
of  the  Thoroughbred  Breeding  Fund  require the ability to allot Fund

revenue based on the current state of the Thoroughbred industry.  To  do
so,  the statutory limitations on Fund allocations need further room for
growth to accommodate awards earned and revenue at hand to the Fund.

This  is a housekeeping modification that has no financial impact on any
other organization or segment of the industry.

NY Thoroughbred Breeders are a key sector  of  New  York's  agricultural
economy,  which is the number one agri-business for New York.  Thorough-
bred Breeders have a significant, positive impact on the upstate economy
by providing jobs, protecting open space, preserving property values and
contributing to the overall  state  and  local  economies.  Thoroughbred
breeders  play  a  central role in strengthening New York's horse racing
industry by helping maintain the highest York thoroughbred  farms  range
from large commercial facilities to smaller family owned operations, who
are struggling to make ends meet. New York is home to over 400 thorough-
bred  breeding  farms.    utilizing 43,000 acres of working landscape or
"green space".  Spending by suppliers and employees generates additional
jobs in New York for a total employment impact of over 35,000  agribusi-
ness jobs.

Prior Legislative History:  This is a new bill.

Fiscal Implications For State And Local Governments:  None to the State.

Effective Date:  Immediately.