Relates to extending the provisions relating to the New York state thoroughbred breeding and development fund until two years after the commencement of the operation of a video lottery terminal facility at Aqueduct racetrack.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10295
SPONSOR: Pretlow
 
TITLE OF BILL: An act to amend chapter 473 of the laws of 2010 amend-
ing the racing, pari-mutuel wagering and breeding law relating to the
New York state thoroughbred breeding and development fund, in relation
to the effectiveness thereof
 
PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is
to provide continued revenue to the New York State Thoroughbred Breeding
& Development Fund.
 
SUMMARY OF SPECIFIC PROVISIONS: This bill would 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. This section of law is scheduled to sunset on October 28, 2012.
Specifically, the following provisions would be extended for an addi-
tional year:
o required payments to be made to the fund on a quarterly basis;
o the percentage of revenue that can be allotted to breeder awards would
be maintained at 65 percent;
o amount of money used for promoting the breeding and raising of
thoroughbred horses would be increased by one percent to an amount up to
six percent; and
o administrative allotments from the fund would be increased from 4
percent up to 5 percent.
 
JUSTIFICATION: The New York State Thoroughbred Breeding and Develop-
ment 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 econ-
omy, 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 mare 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 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. Chapter 175 of the Laws of 2011 extended
that sunset by one year. This proposal would extend those provisions for
an additional year and provide the Board of Directors of the Thorough-
bred 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:
2010: similar to Chapter 473 of the Laws of 2010 (A.11130A/S.7578A)
2011: Similar to Chapter 175 of the Laws of 2011 (A.7852A/S.39498)
 
FISCAL IMPLICATIONS: None.
 
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK
________________________________________________________________________
10295
IN ASSEMBLY
May 18, 2012
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Racing and Wagering
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2 of chapter 473 of the laws of 2010 amending the
2 racing, pari-mutuel wagering and breeding law relating to the New York
3 state thoroughbred breeding and development fund, as amended by chapter
4 175 of the laws of 2011, is amended to read as follows:
5 § 2. This act shall take effect immediately, provided, however that
6 this act shall expire and be deemed repealed [one year] two years after
7 the commencement of the operation of a video lottery facility at Aque-
8 duct racetrack; provided that the chair of the New York state thorough-
9 bred breeding and development fund shall notify the legislative bill
10 drafting commission upon the occurrence of the commencement of the oper-
11 ation of a video lottery facility at Aqueduct racetrack in order that
12 the commission may maintain an accurate and timely effective data base
13 of the official text of the laws of the state of New York in furtherance
14 of effectuating the provisions of section 44 of the legislative law and
15 section 70-b of the public officers law; provided further, that effec-
16 tive immediately the addition, amendment and/or repeal of any rules or
17 regulations necessary for the implementation of this act on its effec-
18 tive date are authorized and directed to be made and completed on or
19 before such date.
20 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15468-01-2