§ 1723-A.1. Distributions from Pennsylvania Race Horse Development Fund
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: December 13, 2023
Effective: December 13, 2023
72 P.S. § 1723-A.1
§ 1723-A.1. Distributions from Pennsylvania Race Horse Development Fund
(1) An amount equal to 18% of the daily gross terminal revenue of each Category 1 licensee shall be distributed to each active and operating Category 1 licensee conducting live racing unless the daily assessments are affected by the daily assessment cap provided for in 4 Pa.C.S. § 1405(c) (relating to Pennsylvania Race Horse Development Fund). In cases in which the daily assessment cap affects daily assessments, the distribution to each active and operating Category 1 licensee conducting live racing for that day shall be a percentage of the total daily assessments paid into the fund for that day equal to the gross terminal revenue of each active and operating Category 1 licensee conducting live racing for that day divided by the total gross terminal revenue of all active and operating Category 1 licensees conducting live racing for that day. Except as provided in paragraphs (2) and (2.1), the distributions to licensed racing entities from the fund shall be allocated as follows:
(i) Eighty percent shall be deposited weekly into a separate, interest-bearing purse account to be established by and for the benefit of the horsemen. The earned interest on the account shall be credited to the purse account. Licensees shall combine these funds with revenues from existing purse agreements to fund purses for live races consistent with those agreements with the advice and consent of the horsemen.
(ii) For thoroughbred tracks, 16% shall be deposited on a monthly basis into the Pennsylvania Breeding Fund. For standardbred tracks, 8% shall be deposited on a monthly basis in the Pennsylvania Sire Stakes Fund, and 8% shall be deposited on a monthly basis into a restricted account in the State Racing Fund to be known as the Pennsylvania Standardbred Breeders Development Fund. The commission shall, in consultation with the Secretary of Agriculture, by rule or by regulation, adopt a standardbred breeders program that will include the administration of the Pennsylvania Stallion Award, the Pennsylvania Bred Award and the Pennsylvania Sired and Bred Award.
(iii) Four percent shall be used to fund health and pension benefits for the members of the horsemen's organizations representing the owners and trainers at the racetrack at which the licensed racing entity operates for the benefit of the organization's members, their families, employees and others in accordance with the rules and eligibility requirements of the organization, as approved by the commission. This amount shall be deposited within five business days of the end of each month into a separate account to be established by each respective horsemen's organization at a banking institution of its choice. Of this amount, $250,000 shall be paid annually by the horsemen's organization to the thoroughbred jockeys or standardbred drivers organization at the racetrack at which the licensed racing entity operates for health insurance, life insurance or other benefits to active and disabled thoroughbred jockeys or standardbred drivers in accordance with the rules and eligibility requirements of that organization.
(i.1) In addition to the transfer under subparagraph (i), for a total of 14 weeks from the effective date of this subparagraph, each week, $300,000 shall be transferred from the fund, for a total amount of $4,200,000, to the State Racing Fund to be used exclusively for the enforcement of the act of December 17, 1981 (P.L. 435, No. 135),1 known as the Race Horse Industry Reform Act. Moneys transferred pursuant to this subparagraph shall not be transferred subsequently to any other State fund or account for any purpose.
(i.2) For fiscal year 2015-2016, beginning on the effective date of this subparagraph,2 the sum of $25,759,000 in the fund shall be transferred to the account in equal weekly amounts sufficient to complete the transfer by June 30, 2016.
(i.3) For fiscal year 2016-2017, the sum of $19,659,000 in the fund shall be transferred to the account in 22 equal weekly amounts beginning on the effective date of this subparagraph.3
(i.4) For fiscal year 2017-2018, the sum of $19,659,000 in the fund shall be transferred to the account in 22 equal weekly amounts beginning on the effective date of this subparagraph.4
(i.5) For fiscal year 2018-2019, the sum of $19,659,000 in the fund shall be transferred to the account in 22 equal weekly amounts beginning on the effective date of this subparagraph.5
(i.6) For fiscal year 2019-2020, the sum of $19,659,000 in the fund shall be transferred to the account in 22 equal weekly amounts beginning on the effective date of this subparagraph.6
(B) For fiscal year 2022-2023, the sum of $14,659,000 in the fund shall be transferred to the account in 22 equal weekly amounts beginning on the effective date of this clause.7
(A) The greater of 4% of the amount to be distributed under subparagraph (ii) or $220,000 shall be used to fund health and pension benefits for the members of the horsemen's organizations representing the owners and trainers at the racetrack at which the licensed racing entity operates for the benefit of the organization's members, their families, employees and others in accordance with the rules and eligibility requirements of the organization, as approved by the commission. This amount shall be deposited within five business days of the end of each week into a separate account to be established by each respective horsemen's organization at a banking institution of its choice. Of this amount, a minimum of $250,000 shall be paid annually by the horsemen's organization to the thoroughbred jockeys or standardbred drivers organization at the racetrack at which the licensed racing entity operates for health insurance, life insurance or other benefits to active and disabled thoroughbred jockeys or standardbred drivers in accordance with the rules and eligibility requirements of that organization. The total distribution under this clause in any fiscal year shall not exceed $11,400,000.
(I) Eighty-three and one-third percent of the money to be distributed under this clause shall be deposited on a weekly basis into a separate, interest-bearing purse account to be established by and for the benefit of the horsemen. The earned interest on the account shall be credited to the purse account. Licensees shall combine these funds with revenues from existing purse agreements to fund purses for live races consistent with those agreements with the advice and consent of the horsemen.
(II) For thoroughbred tracks, 16 and 2/3 % of the money to be distributed under this clause shall be deposited on a weekly basis into the Pennsylvania Breeding Fund. For standardbred tracks, 8 and ⅓ % of the money to be distributed under this clause shall be deposited on a weekly basis into the Pennsylvania Sire Stakes Fund; and 8 and ⅓ % of the money to be distributed under this clause shall be deposited on a weekly basis into a restricted account in the State Racing Fund to be known as the Pennsylvania Standardbred Breeders Development Fund. The commission shall, in consultation with the Secretary of Agriculture, promulgate regulations adopting a standardbred breeders program that will include the administration of the Pennsylvania Stallion Award, the Pennsylvania Bred Award and the Pennsylvania Sired and Bred Award.
(i) For fiscal year 2016-2017, the department shall transfer $8,555,255 from the fund to the State Racing Fund pursuant to section 2874-D of The Administrative Code of 1929.8
(b) Annual transfers to State Racing Fund.--The General Assembly shall authorize the transfer of funds from the fund to the State Racing Fund to provide for each cost associated with the collection and research of and testing for medication, which shall include the cost of necessary personnel, equipment, supplies and facilities, except holding barns or stables, to be located at horse race facilities, grounds or enclosures or at other locations designated by the commission. All such costs shall be reviewed and approved by the commission. The transfer shall be made in 52 equal weekly installments during the fiscal year before any other distribution from the fund. This subsection shall expire on June 30, 2025.
Credits
1929, April 9, P.L. 343, No. 176, art. XVII-A.1, § 1723-A.1, added 2013, July 18, P.L. 574, No. 71, § 14, imd. effective. Amended 2014, April 10, P.L. 408, No. 30, § 1, imd. effective; 2014, July 10, P.L. 1053, No. 126, § 13, imd. effective; 2016, April 25, P.L. 168, No. 25, § 9, imd. effective; 2016, July 13, P.L. 664, No. 85, § 16, imd. effective; 2017, Oct. 30, P.L. 725, No. 44, § 10, imd. effective; 2018, June 22, P.L. 281, No. 42, § 13, imd. effective; 2019, June 28, P.L. 173, No. 20, § 12, effective July 1, 2019; 2020, May 29, P.L. 158, No. 23, § 6, effective July 1, 2020; 2021, June 30, P.L. 62, No. 24, § 15, effective July 1, 2021; 2022, July 11, P.L. 540, No. 54, § 22, imd. effective; 2023, Dec. 13, P.L. 251, No. 34, § 12, imd. effective.
Footnotes
4 P.S. § 325.101 et seq. (repealed); see 3 Pa.C.S.A. § 9301 et seq.
Subsec. (a)(2)(i.2) was added by 2016, April 25, P.L. 168, No. 25, § 9, imd. effective.
Subsec. (a)(2)(i.3) was added by 2016, July 13, P.L. 664, No. 85, § 16, imd. effective.
Subsec. (a)(2)(i.4) was added by 2017, Oct. 30, P.L. 725, No. 44, § 10, imd. effective.
Subsec. (a)(2)(i.5) was added by 2018, June 22, P.L. 281, No. 42, § 13, imd. effective.
Subsec. (a)(2)(i.6) was added by 2019, June 28, P.L. 173, No. 20, § 12, effective July 1, 2019.
Subsec. (a)(2)(i.8)(B) was added by 2022, July 11, P.L. 540, No. 54, § 22, imd. effective.
71 P.S. § 720.94 (repealed); see 3 Pa.C.S.A. § 9374.
72 P.S. § 1723-A.1, PA ST 72 P.S. § 1723-A.1
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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