(a) Establishment.--There is 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 9334 (relating to State Racing Fund and tax rate) and any provision of 4 Pa.C.S. Pt. II (relating to gaming) and which shall be distributed by the commission.
(a.1) Effective dates.--If at least $10,000,000 more than the amount deposited into the Pennsylvania Breeding Fund in 2016 under subsection (a) is deposited into the Pennsylvania Breeding Fund, this subsection and subsection (d.1) shall become effective on January 1 of the year following the effective date of the deposit, and shall remain effective for each year the deposit amount under this subsection is met. If in any year the funding requirement under this subsection is not met, subsections (c) and (d) shall remain in effect for the following year.
(b) Awards from the Pennsylvania Breeding Fund.--(Expired).
(b.1) Awards from the Pennsylvania Breeding Fund.--The commission shall distribute money from the Pennsylvania Breeding Fund as follows:
(1) An award of 40% of the purse earned by every registered Pennsylvania-bred thoroughbred race horse sired by a registered Pennsylvania sire at the time of conception of the registered Pennsylvania-bred thoroughbred race horse which finishes first, second or third in any race conducted by a licensed racing entity under this chapter shall be paid to the breeder of the registered Pennsylvania-bred thoroughbred race horse.
(2) An award of 20% of the purse earned by every registered Pennsylvania-bred thoroughbred race horse sired by a nonregistered sire, which finishes first, second or third in any race conducted by a licensed racing entity under this chapter shall be paid to the breeder of the registered Pennsylvania-bred thoroughbred race horse.
(3) A single award under paragraphs (1) and (2) may not exceed 1% of the total annual fund money.
(4) An award of 10% of the purse earned by any registered Pennsylvania-bred thoroughbred race horse which finishes first, second or third in any race conducted by a licensed racing entity under this chapter 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 race horse. A single award under this paragraph may not exceed 0.5% of the total annual fund money.
(c) Purses from Pennsylvania Breeding Fund.--
(1) Up to one-fifth 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 awards under subsection (b) or (b.1) 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 race horse.
(2) This subsection shall expire upon the date subsection (a.1) is implemented. If in any year the funding requirement under subsection (a.1) is not met, this subsection shall remain in effect for that year.
(d) Remaining funds.--The Pennsylvania Breeding Fund money remaining following disbursements as directed in subsections (b) or (b.1) and (c) 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 for purses as follows:
(1) Claiming and nonclaiming Pennsylvania Breeding Fund races which restrict entry to registered Pennsylvania-bred thoroughbred race horses.
(2) Claiming and nonclaiming Pennsylvania Breeding Fund races which prefer registered Pennsylvania-bred thoroughbred race horses as starters. In these races, should eight or more registered Pennsylvania-bred thoroughbred race horses pass the entry box, the race shall be considered closed to horses other than registered Pennsylvania-bred thoroughbred race horses.
(3) This subsection shall expire upon the date subsection (a.1) is implemented. If in any year the funding requirement under subsection (a.1) is not met, this subsection shall remain in effect for that year.
(d.1) Remaining funds from Pennsylvania Breeding Fund.--The estimated Pennsylvania Breeding Fund money remaining after the deduction of expenses related to the administration and development of the Pennsylvania Breeding Fund Program and the payment of awards under subsection (b.1) 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 as follows:
(1) Fifty percent shall be used to award a bonus to the owner of, or pay purses of races that restrict entry to, a registered Pennsylvania-bred thoroughbred race horse sired by a registered Pennsylvania sire.
(2) Fifty percent shall be used to award a bonus to the owner of, or pay purses of races that restrict entry to, a registered Pennsylvania-bred thoroughbred race horse.
(3) In all claiming and nonclaiming races which prefer registered Pennsylvania-bred thoroughbred race horses as starters, if eight or more registered Pennsylvania-bred thoroughbred race horses pass the entry box, the race shall be considered closed to horses other than registered Pennsylvania-bred thoroughbred race horses.
(e) Funds not expended.--
(1) (Expired).
(2) Pennsylvania Breeding Fund money due to licensed racing entities, as outlined in subsections (b.1) and (d.1), 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 racing entities' fund money annually due to them for purses.
(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 race horses. The Pennsylvania Horse Breeders' Association shall advise the commission when called upon and shall determine the qualifications for Pennsylvania-bred thoroughbred race horses 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, 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.
2016 Expiration. Subsections (b) and (e)(1) expired December 31, 2016. See Act 114 of 2016.
Special Provisions in Appendix. See sections 6 and 7 of Act 114 of 2016 in the appendix to this title for special provisions relating to continuation of prior law and applicability.
Cross References. Section 9336 is referred to in section 1406 of Title 4 (Amusements).
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 93 - Race Horse Industry Reform
Section 9311 - State Horse Racing Commission
Section 9312 - Additional powers of commission
Section 9315 - Number of licensed racing entities
Section 9316 - Department of Revenue
Section 9317 - Allocation of racing days
Section 9318 - Licenses for horse race meetings
Section 9319 - Code of conduct
Section 9320 - Financial interests
Section 9321 - Officials at horse race meetings
Section 9322 - Secondary pari-mutuel organization
Section 9323 - Occupational licenses for individuals
Section 9325 - Power of commission to impose fines
Section 9326 - Admission to racetrack
Section 9327 - Security personnel
Section 9329 - Interstate simulcasting
Section 9330 - Place and manner of conducting pari-mutuel wagering at racetrack enclosure
Section 9331 - Pari-mutuel wagering at nonprimary locations
Section 9332 - Books and records of pari-mutuel wagering
Section 9333 - Filing of certain agreements with commission
Section 9334 - State Racing Fund and tax rate
Section 9335 - Pari-mutuel pool distribution
Section 9336 - Pennsylvania Breeding Fund
Section 9337 - Pennsylvania Sire Stakes Fund
Section 9338 - Fair fund proceeds
Section 9340 - Prohibition of wagering
Section 9341 - Veterinarians and State stewards
Section 9342 - Promotions and discounts
Section 9343 - Monitoring of wagering on video screens
Section 9344 - Intrastate simulcasting
Section 9346 - Standardbred horse racing purse money
Section 9351 - General license requirements
Section 9352 - Licensing costs and fees
Section 9353 - License application procedures
Section 9354 - Oral presentation by applicant
Section 9355 - Additional information
Section 9357 - Transfers of licenses
Section 9358 - Duration of license
Section 9359 - Penalties and enforcement
Section 9361 - Tax compliance requirement
Section 9371 - Mandatory requirements for medication rules
Section 9372 - Establishment of Pennsylvania Race Horse Testing Program
Section 9373 - Equipment, supplies and facilities
Section 9374 - Costs of enforcement of medication rules or regulations