(a) Fund established.--The Pennsylvania Race Horse Development Fund is converted into a trust fund and shall be known as the Pennsylvania Race Horse Development Trust Fund within the State Treasury.

(b) Pennsylvania race horse improvement assessment.--Each active and operating licensed gaming entity, other than a Category 4 slot machine licensee, shall pay a daily assessment to the Pennsylvania Race Horse Development Trust Fund as determined by the department. Subject to the daily assessment cap established under subsection (c), the licensed gaming entity's assessment shall be a percentage of each licensed gaming entity's gross terminal revenue, equal to an amount calculated as “A” multiplied by “B”, with “A” being equal to each licensed gaming entity's gross terminal revenue for that day divided by the total gross terminal revenue for that day from all licensed gaming entities, and “B” being equal to 18% of that day's gross terminal revenue for all active and operating Category 1 licensees conducting live racing.

(c) Daily assessment cap.--If the resulting daily assessment for a licensed gaming entity exceeds 12% of that licensed gaming entity's gross terminal revenue for the day, the licensed gaming entity shall pay a daily assessment of 12% of its gross terminal revenue for that day.

(d) Distributions.--In accordance with section 1406 (relating to distributions from Pennsylvania Race Horse Development Trust Fund), the department shall make distributions from the Pennsylvania Race Horse Development Trust Fund to each of the active and operating Category 1 licensees conducting live racing.