Regular Session 2015-2016 House Bill 0923 P.N. 3401

PRINTER'S NO. 3401

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

923

Session of

2015

INTRODUCED BY LAWRENCE, DiGIROLAMO, HELM, MILLARD AND ROSS,

MAY 23, 2016

REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,

MAY 23, 2016

AN ACT

Amending the act of April 9, 1929 (P.L.177, No.175), entitled

"An act providing for and reorganizing the conduct of the

executive and administrative work of the Commonwealth by the

Executive Department thereof and the administrative

departments, boards, commissions, and officers thereof,

including the boards of trustees of State Normal Schools, or

Teachers Colleges; abolishing, creating, reorganizing or

authorizing the reorganization of certain administrative

departments, boards, and commissions; defining the powers and

duties of the Governor and other executive and administrative

officers, and of the several administrative departments,

boards, commissions, and officers; fixing the salaries of the

Governor, Lieutenant Governor, and certain other executive

and administrative officers; providing for the appointment of

certain administrative officers, and of all deputies and

other assistants and employes in certain departments, boards,

and commissions; providing for the regulation of pari-mutuel

thoroughbred horse racing and harness horse racing

activities, imposing certain taxes and providing for the

disposition of funds from pari-mutuel tickets; and

prescribing the manner in which the number and compensation

of the deputies and all other assistants and employes of

certain departments, boards and commissions shall be

determined," in race horse industry reform, further providing

for Pennsylvania Breeding Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 2836-D of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929,

added February 23, 2016 (P.L.15, No.7), is amended to read:

Section 2836-D. Pennsylvania Breeding Fund.

(a) Establishment.--There is hereby created a restricted

account in the State Racing Fund to be known as the Pennsylvania

Breeding Fund which shall consist of the money deposited under

section 2834-D and any provision of 4 Pa.C.S. Pt. II (relating

to gaming) and which shall be distributed by the commission.

(b) Awards from the Pennsylvania Breeding Fund.--The

commission shall distribute money from the Pennsylvania Breeding

Fund as follows:

(1) An award of 30% of the purse earned by every

registered Pennsylvania-bred thoroughbred racing horse sired

[in this Commonwealth] by a registered Pennsylvania sire at

the time of conception of the registered Pennsylvania-bred

thoroughbred racing horse [sired in this Commonwealth], or an

award of 20% of the purse earned by every registered

Pennsylvania-bred thoroughbred racing horse [sired in this

Commonwealth] sired by a nonregistered sire, which finishes

first, second or third in any race conducted by a licensed

racing entity under this article shall be paid to the breeder

of said registered Pennsylvania-bred thoroughbred racing

horse [sired in this Commonwealth]. A single award under this

paragraph may not exceed 1% of the total annual fund money.

(2) An award of 10% of the purse earned by any

registered Pennsylvania-bred thoroughbred racing horse [sired

in this Commonwealth] which finishes first, second or third

in any race conducted by a licensed racing entity under this

article shall be paid to the owner of the registered

Pennsylvania sire which regularly stood in Pennsylvania at

the time of conception of the Pennsylvania-bred thoroughbred

20160HB0923PN3401 - 2 -

racing horse [sired in this Commonwealth]. A single award

under this paragraph may not exceed 0.5% of the total annual

fund money.

(3) An award of 10% of the purse earned by any

registered Pennsylvania-bred thoroughbred racing horse [sired

in this Commonwealth] which finishes first in any race

conducted by a licensed racing entity under this article not

restricting entry to a registered [thoroughbreds]

Pennsylvania-bred thoroughbred racing horse [sired in this

Commonwealth] shall be paid to the licensed owner of said

registered Pennsylvania-bred thoroughbred horse [sired in

this Commonwealth] at the time of winning. A single award

under this paragraph may not exceed 0.5% of the total annual

fund money.

of the total of the estimated Pennsylvania Breeding Fund money

remaining each year after the deduction of expenses related to

the administration and development of the Pennsylvania Breeding

Fund program and the payment of breeder, stallion and owner

awards, shall be divided among the licensed racing entities that

conduct thoroughbred horse race meetings in direct proportion to

the rate by which each licensed racing entity generated the fund

money during the previous year to be used solely for purses for

Pennsylvania Breeding Fund stakes races which restrict entry to

a registered Pennsylvania-bred thoroughbred racing horse [sired

in this Commonwealth].

(d) Remaining funds.--The Pennsylvania Breeding Fund money

remaining following disbursements as directed in subsections (b)

(1), (2) and (3) and (c) shall be divided among the licensed

racing entities that conduct thoroughbred horse race meetings in

20160HB0923PN3401 - 3 -

direct proportion to the rate by which each licensed racing

entity generated the fund money during the previous year to be

used for purses as follows:

(1) Claiming and nonclaiming Pennsylvania Breeding Fund

races which restrict entry to registered Pennsylvania-bred

thoroughbred racing horses [sired in this Commonwealth].

(2) Claiming and nonclaiming Pennsylvania Breeding Fund

races which prefer registered Pennsylvania-bred thoroughbred

racing horses [sired in this Commonwealth] as starters. In

these races, should eight or more registered Pennsylvania-

bred thoroughbred racing horses [sired in this Commonwealth]

pass the entry box, the race shall be considered closed to

horses other than registered Pennsylvania-bred thoroughbred

racing horses [sired in this Commonwealth].

(e) Funds not expended.--Pennsylvania Breeding Fund money

due to licensed racing entities, as outlined in subsections (c)

and (d), but not expended during the calendar year may be

carried forth in the fund on the accounts of the licensed racing

entities to be expended during the succeeding year in addition

to the licensed racing entities' fund money annually due to them

for purses.

(e.1) Committee.--There is hereby established the

Pennsylvania Breeding Fund Advisory Committee within the

commission. The committee shall consist of five individuals, who

are residents of this Commonwealth, to be appointed by the

commission by June 1 of each year based on the recommendation of

the groups identified in this subsection. If a member other than

a commissioner has not been recommended by June 1 of each year,

the commission shall make an appointment for the organization

failing to so recommend a member of the committee. The committee

20160HB0923PN3401 - 4 -

shall assist and advise the commission on the regulation of

horse racing breeding issues under this article but shall have

no power in administering the fund. Members of the advisory

committee shall not receive compensation or reimbursements for

participation on the committee. The committee shall consist of

the following members:

(1) Two members representing the Pennsylvania Horse

Breeders' Association.

(2) One member representing licensed racing entities.

(3) One member representing the association representing

horsemen racing in Pennsylvania.

(4) One member of the commission.

(f) Pennsylvania Horse Breeders' Association.--The

commission shall contract with the Pennsylvania Horse Breeders'

Association as the organization responsible for the registration

and records of Pennsylvania-bred thoroughbred racing horses

[sired in this Commonwealth]. The Pennsylvania Horse Breeders'

Association shall advise the commission when called upon and

shall determine the qualifications for Pennsylvania-bred

thoroughbred racing horses [sired in this Commonwealth] and

Pennsylvania sires. Registration and records of the association

shall be official records of the Commonwealth and shall be

subject to the act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law. At the close of each calendar year, the

Pennsylvania Horse Breeders' Association shall submit to the

commission for its approval an itemized budget of projected

expenses for the ensuing year relating to the administration and

development of the Pennsylvania Breeding Fund Program. [The

commission shall reimburse the Pennsylvania Horse Breeders'

Association for those expenses actually incurred in the

20160HB0923PN3401 - 5 -

administration and development of the Pennsylvania Breeding Fund

Program from the Pennsylvania Breeding Fund, no more than on a

quarterly basis.] The commission, on no more than a quarterly

basis, shall reimburse from the fund the Pennsylvania Horse

Breeders Association for those expenses actually incurred in the

administration and development of the Pennsylvania Breeding Fund

Program.

Section 2. The amendment of section 2836-D of the act shall

apply retroactively to February 23, 2016.

Section 3. This act shall take effect immediately.

20160HB0923PN3401 - 6 -