Directs the New York state thoroughbred breeding and development fund to collect from racing and betting corporations on a quarterly basis; changes allotment percentages for breeder awards, publication and dissemination of information and administration and management of the fund.
Ayes (61): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Duane, Espada, Farley, Flanagan, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Excused (1): Morahan
BILL NUMBER: S7578
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 paragraph 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 thoroughbred industry, 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 foals and stallions, and distributes 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, especially 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 Standards 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. Thoroughbred 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 levels of racing, and producing superior quality thoroughbreds. New 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 thoroughbred 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 agribusiness jobs.
PRIOR LEGISLATIVE HISTORY : This is a new bill.
FISCAL IMPLICATION : None to the state.
EFFECTIVE DATE : Immediately.
STATE OF NEW YORK ________________________________________________________________________ 7578 IN SENATE April 23, 2010 ___________Introduced by Sen. ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wager- ing AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York state thoroughbred breeding and development fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of subdivision 1 and paragraphs a, e and f of subdivision 2 of section 254 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, are amended to read as follows: a. The fund is authorized and directed to collect and receive ON A QUARTERLY BASIS in each calendar year from any racing corporation or regional off-track betting corporations from on-track wagers or off- track wagers, as the case may be, the sum of one-half of one percent of regular, multiple and exotic wagers, and three percent of super exotic wagers and to deposit such moneys in a bank or banks in this state. a. An amount as shall be determined by the fund, but not in excess of forty-three percent as awards to breeders of New York-breds finishing first, second, third and fourth in pari-mutuel races run in New York state; except that during any calendar year when the total percentage of breeder awards exceeds forty-three percent of total revenue, the fund, by a two-thirds vote of its board, may increase the percentage of reven- ue allotted to breeder awards, but in no event shall the allotment exceed
[fifty]SIXTY-FIVE percent of total revenue. e. An amount as shall be determined by the fund but not in excess of [five]SIX percent to advance and promote breeding and raising of thoroughbreds in this state by the publication and dissemination of information relating thereto, and the encouragement of interest, includ- ing among youth, in the breeding and raising of New York-breds, and to advance and promote interest generally in agricultural pursuits. f. An amount as shall be determined by the fund but not in excess of [four]FIVE percent for the administration and management of the fund. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16977-01-0