HB 1607

1	A bill to be entitled
2	An act relating to horse breeder awards; amending s.
3	550.26165, F.S.; revising provisions for breeders' and
4	stallion awards; providing for awards to breeders of
5	registered Florida-bred horses participating in
6	horseraces; revising requirements for awards; revising
7	provisions for plans for rate of payment and procedure for
8	awards; providing for amendment of the plan; amending s.
9	550.2625, F.S.; revising amount and use a thoroughbred
10	permitholder is authorized to withhold from handle on
11	exotic wagering; revising sources of funds in the purse
12	account; removing an exemption from certain provisions for
13	owners' awards; revising procedures for payment of
14	breeders', stallion, or special racing awards; providing
15	for awards in the absence of a certain written agreements;
16	providing for severability; providing effective dates.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1.  Subsections (1), (2), and (3) of section
21	550.26165, Florida Statutes, are amended to read:
22	550.26165  Breeders' awards.--
23	(1)  The purpose of this section is to encourage the
24	agricultural activity of breeding and training racehorses in
25	this state. Moneys dedicated in this chapter for use as
26	breeders' awards and stallion awards are to be used for awards
27	to breeders of registered Florida-bred horses participating in
28	winning horseraces and for similar awards to the owners of
29	stallions who sired Florida-bred horses participating in winning
30	stakes races, if the stallions are registered as Florida
31	stallions standing in this state.
32	(a)  Such awards shall be given at a uniform rates rate to
33	all winners of the awards and, shall not be greater than 20
34	percent of the announced gross purse. Such rates shall be
35	established in the annual plan adopted pursuant to subsection
36	(2) and may vary based upon the place of finish and class of
37	race, and shall not be less than 15 percent of the announced
38	gross purse if funds are available.
39	(b)  In addition, No less than 17 percent nor more than 40
40	percent, as determined by the Florida Thoroughbred Breeders'
41	Association, of the moneys dedicated in this chapter for use as
42	breeders' awards and stallion awards for thoroughbreds shall be
43	returned pro rata to the permitholders that generated the moneys
44	for special racing awards to be distributed by the permitholders
45	to owners of thoroughbred horses participating in prescribed
46	thoroughbred stakes races, nonstakes races, or both, all in
47	accordance with a written agreement establishing the rate,
48	procedure, and eligibility requirements for such awards entered
49	into by the permitholder, the Florida Thoroughbred Breeders'
50	Association, and the Florida Horsemen's Benevolent and
51	Protective Association, Inc., except that the plan for the
52	distribution by any permitholder located in the area described
53	in s. 550.615(9) shall be agreed upon by that permitholder, the
54	Florida Thoroughbred Breeders' Association, and the association
55	representing a majority of the thoroughbred race horse racehorse
56	owners and trainers at that location.
57	(c)  Awards for thoroughbred races are to be paid through
58	the Florida Thoroughbred Breeders' Association, and awards for
59	standardbred races are to be paid through the Florida
60	Standardbred Breeders and Owners Association.
61	(d)  Among other sources specified in this chapter, moneys
62	for thoroughbred breeders' awards will come from the 0.955
63	percent of handle for thoroughbred races conducted, received,
64	broadcast, or simulcast under this chapter as provided in s.
65	550.2625(3). The moneys for quarter horse and harness breeders'
66	awards will come from the breaks and uncashed tickets on live
67	quarter horse and harness racing performances and 1 percent of
68	handle on intertrack wagering. The funds for these breeders'
69	awards shall be paid to the respective breeders' associations by
70	the permitholders conducting the races.
71	(2)  Each breeders' association shall develop a plan each
72	year that will provide for a uniform rate of payment and
73	procedure for breeders' and stallion awards. The plan for
74	payment of breeders' and stallion awards may set a cap on
75	winnings and may limit, exclude, or defer payments on certain
76	classes of races of stallion awards, breeders' awards, or both,
77	such as the Florida stallion stakes races, in order to assure
78	that there are adequate revenues to meet the proposed uniform
79	rate. Priority shall be placed on imposing such restrictions in
80	lieu of allowing the uniform rate for breeders' and stallion
81	awards to be less than 15 percent of the total purse payment.
82	The plan must provide for the maximum possible payments within
83	revenues.
84	(3)  Breeders' associations shall submit their plans to the
85	division at least 60 days before the beginning of the payment
86	year. The payment year may be a calendar year or any 12-month
87	period, but once established, the yearly base may not be changed
88	except for compelling reasons. Once a plan is approved, the
89	division may not allow the plan to be amended during the year,
90	except when such amendment is deemed by the division to be in
91	the best interests of the thoroughbred breeding industry for the
92	most compelling reasons.
93	Section 2.  Effective July 1, 2007, paragraphs (a) and (e)
94	of subsection (2) of section 550.2625, Florida Statutes, are
95	amended to read:
96	550.2625  Horseracing; minimum purse requirement, Florida
97	breeders' and owners' awards.--
98	(2)  Each permitholder conducting a horserace meet is
99	required to pay from the takeout withheld on pari-mutuel pools a
100	sum for purses in accordance with the type of race performed.
101	(a)  A permitholder conducting a thoroughbred horse race
102	meet under this chapter must pay from the takeout withheld a sum
103	not less than 7.75 percent of all contributions to pari-mutuel
104	pools conducted during the race meet as purses. In addition to
105	the 7.75 percent minimum purse payment, permitholders conducting
106	live thoroughbred performances shall be required to pay as
107	additional purses .625 percent of live handle for performances
108	conducted during the period beginning on January 3 and ending
109	March 16; .225 percent for performances conducted during the
110	period beginning March 17 and ending May 22; and .85 percent for
111	performances conducted during the period beginning May 23 and
112	ending January 2. Except that any thoroughbred permitholder
113	whose total handle on live performances during the 1991-1992
114	state fiscal year was not greater than $34 million is not
115	subject to this additional purse payment. A permitholder
116	authorized to conduct thoroughbred racing may withhold from the
117	handle an additional amount equal to 3 1 percent on exotic
118	wagering for use as owners' awards, and may withhold from the
119	handle an amount equal to 2 percent on exotic wagering for use
120	as overnight purses. No permitholder may withhold in excess of
121	20 percent from the handle without withholding the amounts set
122	forth in this subsection.
123	(e)  An amount equal to 8.5 percent of the purse account
124	generated through intertrack wagering and interstate
125	simulcasting will be used for Florida owners' awards as set
126	forth in subsection (6) (3). The purse account shall include all
127	sources of purse funds including funds derived from pari-mutuel
128	wagering, cardrooms, slot machines, and any other form of
129	gaming. Any thoroughbred permitholder with an average blended
130	takeout which does not exceed 20 percent and with an average
131	daily purse distribution excluding sponsorship, entry fees, and
132	nominations exceeding $225,000 is exempt from the provisions of
133	this paragraph.
134	Section 3.  Subsection (3) and paragraphs (a) and (d) of
135	subsection (6) of section 550.2625, Florida Statutes, are
136	amended to read:
137	550.2625  Horseracing; minimum purse requirement, Florida
138	breeders' and owners' awards.--
139	(3)  Each horseracing permitholder conducting any
140	thoroughbred race under this chapter, including any intertrack
141	race taken pursuant to ss. 550.615-550.6305 or any interstate
142	simulcast taken pursuant to s. 550.3551(3), shall pay a sum
143	equal to 0.955 percent on all pari-mutuel pools conducted during
144	any such race for the payment of breeders', stallion, or special
145	racing awards as authorized in this chapter. This subsection
146	also applies to all Breeder's Cup races conducted outside this
147	state taken pursuant to s. 550.3551(3). On any race originating
148	live in this state which is broadcast out-of-state to any
149	location at which wagers are accepted pursuant to s.
150	550.3551(2), the host track is required to pay 3.475 percent of
151	the gross revenue derived from such out-of-state broadcasts as
152	breeders', stallion, or special racing awards. The Florida
153	Thoroughbred Breeders' Association is authorized to receive
154	these payments from the permitholders and make payments of
155	awards earned. The Florida Thoroughbred Breeders' Association
156	has the right to withhold up to 10 percent of the permitholder's
157	payments under this section as a fee for administering the
158	payments of awards and for general promotion of the industry.
159	The permitholder shall remit these payments to the Florida
160	Thoroughbred Breeders' Association by the 5th day of each
161	calendar month for such sums accruing during the preceding
162	calendar month and shall report such payments to the division as
163	prescribed by the division. With the exception of the 10-percent
164	fee, the moneys paid by the permitholders shall be maintained in
165	a separate, interest-bearing account, and such payments together
166	with any interest earned shall be used exclusively for the
167	payment of breeders', stallion, or special racing awards in
168	accordance with the following provisions:
169	(a)  The breeder of each Florida-bred thoroughbred horse
170	participating in winning a thoroughbred horse race may receive
171	is entitled to an award of up to, but not exceeding, 20 percent
172	of the announced gross purse, including nomination fees,
173	eligibility fees, starting fees, supplementary fees, and moneys
174	added by the sponsor of the race.
175	(b)  The owner or owners of the sire of a Florida-bred
176	thoroughbred horse that participates in wins a stakes race may
177	receive is entitled to a stallion award of up to, but not
178	exceeding, 20 percent of the announced gross purse, including
179	nomination fees, eligibility fees, starting fees, supplementary
180	fees, and moneys added by the sponsor of the race.
181	(c)  The owners of thoroughbred horses participating in
182	thoroughbred stakes races, nonstakes races, or both may receive
183	a special racing award in accordance with the agreement
184	established pursuant to s. 550.26165(1)(b).
185	(d)  In order for a breeder of a Florida-bred thoroughbred
186	horse to be eligible to receive a breeder's award, the horse
187	must have been registered as a Florida-bred horse with the
188	Florida Thoroughbred Breeders' Association, and the Jockey Club
189	certificate for the horse must show that it has been duly
190	registered as a Florida-bred horse as evidenced by the seal and
191	proper serial number of the Florida Thoroughbred Breeders'
192	Association registry. The Florida Thoroughbred Breeders'
193	Association shall be permitted to charge the registrant a
194	reasonable fee for this verification and registration.
195	(e)  As part of its annual awards plan adopted pursuant to
196	s. 550.26165, the Florida Thoroughbred Breeders' Association
197	shall establish eligibility requirements for the payment of
198	stallion awards. Such requirements shall include registration
199	with the Florida Thoroughbred Breeders' Association of the
200	stallion and the Florida-bred thoroughbred horse participating
201	in the stakes race, may condition eligibility on the period of
202	time during which the sire is standing in this state, and may
203	except from such standing requirements stallions leaving the
204	state exclusively for prescribed medical treatment. In order for
205	an owner of the sire of a thoroughbred horse winning a stakes
206	race to be eligible to receive a stallion award, the stallion
207	must have been registered with the Florida Thoroughbred
208	Breeders' Association, and the breeding of the registered
209	Florida-bred horse must have occurred in this state. The
210	stallion must be standing permanently in this state during the
211	period of time between February 1 and June 15 of each year or,
212	if the stallion is dead, must have stood permanently in this
213	state for a period of not less than 1 year immediately prior to
214	its death. The removal of a stallion from this state during the
215	period of time between February 1 and June 15 of any year for
216	any reason, other than exclusively for prescribed medical
217	treatment, as approved by the Florida Thoroughbred Breeders'
218	Association, renders the owner or owners of the stallion
219	ineligible to receive a stallion award under any circumstances
220	for offspring sired prior to removal; however, if a removed
221	stallion is returned to this state, all offspring sired
222	subsequent to the return make the owner or owners of the
223	stallion eligible for the stallion award but only for those
224	offspring sired subsequent to such return to this state. The
225	Florida Thoroughbred Breeders' Association shall maintain
226	complete records showing the date the stallion arrived in this
227	state for the first time, whether or not the stallion remained
228	in the state permanently, the location of the stallion, and
229	whether the stallion is still standing in this state and
230	complete records showing awards earned, received, and
231	distributed. The association may charge the owner, owners, or
232	breeder a reasonable fee for this service.
233	(f)  A permitholder conducting a thoroughbred horse race
234	under the provisions of this chapter shall, within 30 days after
235	the end of the race meet during which the race is conducted,
236	certify to the Florida Thoroughbred Breeders' Association such
237	information relating to the thoroughbred horses participating in
238	winning a stakes or other horserace at the meet as may be
239	required to determine the eligibility for payment of breeders',
240	stallion, and special racing awards.
241	(g)  The Florida Thoroughbred Breeders' Association shall
242	maintain complete records showing the thoroughbred horses
243	participating starters and winners in all races conducted at
244	thoroughbred tracks in this state; shall maintain complete
245	records showing awards earned, received, and distributed; and
246	may charge the owner, owners, or breeder a reasonable fee for
247	this service.
248	(h)  The Florida Thoroughbred Breeders' Association shall
249	annually adopt a plan pursuant to s. 550.26165 establishing
250	establish a uniform rate and procedure for the payment of
251	breeders' and stallion awards and shall make breeders' and
252	stallion award payments in strict compliance with the
253	established uniform rate and procedure plan. The plan may set a
254	cap on winnings and may limit, exclude, or defer payments to
255	certain classes of races, such as the Florida stallion stakes
256	races, in order to assure that there are adequate revenues to
257	meet the proposed uniform rate. Such plan must include proposals
258	for the general promotion of the industry. Priority shall be
259	placed upon imposing such restrictions in lieu of allowing the
260	uniform rate to be less than 15 percent of the total purse
261	payment. The uniform rate and procedure plan must be approved by
262	the division before implementation. In the absence of an
263	approved plan and procedure, the authorized rate for breeders'
264	and stallion awards is 15 percent of the announced gross purse
265	for each race. Such purse must include nomination fees,
266	eligibility fees, starting fees, supplementary fees, and moneys
267	added by the sponsor of the race. If the funds in the account
268	for payment of breeders' and stallion awards are not sufficient
269	to meet all earned breeders' and stallion awards, those breeders
270	and stallion owners not receiving payments have first call on
271	any subsequent receipts in that or any subsequent year.
272	(i)  The Florida Thoroughbred Breeders' Association shall
273	keep accurate records showing receipts and disbursements of such
274	payments and shall annually file a full and complete report to
275	the division showing such receipts and disbursements and the
276	sums withheld for administration. The division may audit the
277	records and accounts of the Florida Thoroughbred Breeders'
278	Association to determine that payments have been made to
279	eligible breeders and stallion owners in accordance with this
280	section.
281	(j)  If the division finds that the Florida Thoroughbred
282	Breeders' Association has not complied with any provision of
283	this section, the division may order the association to cease
284	and desist from receiving funds and administering funds received
285	under this section. If the division enters such an order, the
286	permitholder shall make the payments authorized in this section
287	to the division for deposit into the Pari-mutuel Wagering Trust
288	Fund; and any funds in the Florida Thoroughbred Breeders'
289	Association account shall be immediately paid to the Division of
290	Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering
291	Trust Fund. The division shall authorize payment from these
292	funds to any breeder or stallion owner entitled to an award that
293	has not been previously paid by the Florida Thoroughbred
294	Breeders' Association in accordance with the applicable rate.
295	(6)(a)  In the absence of a written agreement on file with
296	the division establishing the rate, procedure, and eligibility
297	requirements for Florida owners' awards entered into by the
298	permitholder, the association representing a majority of the
299	racehorse owners and trainers at that location, and the
300	breeders' association, the funds described in paragraph (2)(e)
301	shall The takeout may be used for the payment of awards Florida
302	owners' awards to owners of registered Florida-bred horses
303	placing first in a claiming race, an allowance race, a maiden
304	special race, or a stakes race in which the announced purse,
305	exclusive of entry and starting fees and added moneys, does not
306	exceed $40,000.
307	(d)  Breeders' awards authorized by subsections (3) and (4)
308	may not be paid on Florida owners' awards.
309	Section 4.  If any provision of this act or its application
310	to any person or circumstance is held invalid, the invalidity
311	does not affect other provisions or applications of the act
312	which can be given effect without the invalid provision or
313	application, and to this end the provisions of this act are
314	declared severable.
315	Section 5.  Except as otherwise provided herein, this act
316	shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.