Senate Bill S1444

                                
 
BILL NUMBER: S1444

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 173 of the laws of 2010 relating to the Hew
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 (415);

*the amount of money used for promoting the breeding and raising of
thoroughbred horses would be increased from five percent (3 ) up to
six-percent (6'); and

*the amount of money used for administrative allotments from the fund
would he increased from four percent (4) up to five percent

Section 2. Effective date.

 
JUSTIFICATION:

The New York State Thoroughbred Breeding and Development Fund, estab-
lished in 173, has helped shape the New York State thoroughred industry,
making it the benchmark of thoroughbred programs around The world for
over tea 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 foals 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 raring 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 hate 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 Breading 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 Aqieduct racetrack, which began
operations on October 28, 2011. The sunset of this law has bean extended
multiple times. This proposal would extend those provisions for an addi-
tional year and provide the Board of Directors oil the Thorougnbred
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:

2018: Similar. to Chapter 341 of the Laws of 2018

2019: PASSED SENATE

2020: PASSED SENATE

 
FISCAL IMPLICATIONS:

None to State.

 
EFFECTIVE DATE:
This act shall take effect immediately.