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Distributions from Pennsylvania Race Horse Development Fund - 4 Pa. Cons. Stat. § 1406

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     § 1406.  Distributions from Pennsylvania Race Horse Development
                Fund.
        (a)  Distributions.--Funds from the Pennsylvania Race Horse
     Development Fund shall be distributed to each active and
     operating Category 1 licensee conducting live racing in the
     following manner:
            (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 section 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 Pennsylvania Race
        Horse Development 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. The
        distributions to licensed racing entities from the
        Pennsylvania Race Horse Development 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 as
            defined in section 223 of the Race Horse Industry Reform
            Act. For standardbred tracks, 8% shall be deposited on a
            monthly basis in the Pennsylvania Sire Stakes Fund as
            defined in section 224 of the Race Horse Industry Reform
            Act, 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 State Harness Racing 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 Pennsylvania Stallion
            Award, Pennsylvania Bred Award and a 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 State Horse Racing Commission or the
            State Harness Racing 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.
            (2)  (Reserved).
        (b)  Guidelines.--The board shall establish guidelines that
     ensure that funds allocated to the horsemen's organization are
     used to finance the programs to benefit all horsemen of this
     Commonwealth and that administrative and overhead costs are
     reasonably related to such programs.
        (c)  Eligible recipients.--Funds allocated to the horsemen's
     organization under this part must be used to benefit all
     horsemen. Funds acquired from other sources shall be kept
     separate and apart from funds obtained under this part.
        (d)  Reasonableness.--Funding for benevolent programs,
     including, but not limited to, pension, health and insurance
     plans, will be considered reasonable if such program funding on
     an annual basis is at least 85% of the total statutory
     allocation.
        (e)  Filing of audit.--All horsemen's organizations that
     receive funds under this section shall file annually with the
     appropriate commission and the board an audit prepared by a
     certified public accountant of all funds received. Such filings
     shall be open to public review. The horsemen's organizations
     shall maintain adequate records concerning receipt and
     distribution of funds allocated to them.
        (f)  Contracts.--All health and pension benefits contracts
     shall be reviewed and approved by the board.
        (g)  Penalty.--Any violation of the provisions of this
     section may subject the horsemen's organization to a fine not to
     exceed $10,000 per violation.
     (Nov. 1, 2006, P.L.1243, No.135, eff. imd.)

        2006 Amendment.  Act 135 amended subsec. (a).
        Cross References.  Section 1406 is referred to in section
     1405 of this title.

Last modified: November 27, 2007