KRS 230.400: Kentucky Thoroughbred development fund -- Contributions -- Purposes --

Distribution -- Advisory committee -- Supplemental purses for Kentucky -bred

horses -- Official registrar -- Administrative regulations.

(1) (a) There is hereby c reated a corporate account for the Kentucky Horse Racing

and Gaming Corporation, designated as the Kentucky Thoroughbred

development fund, consisting of moneys allocated to the fund under the

provisions of KRS 138.510, together with other moneys contribute d to or

allocated to the fund from all other sources.

(b) Moneys to the credit of the Kentucky Thoroughbred development fund shall

be transferred in the following order:

1. One hundred thousand dollars ($100,000) each fiscal year to the

Kentucky problem ga mbling assistance account established in KRS

230.826; and

2. Remaining moneys to the Kentucky Horse Racing and Gaming

Corporation to be divided as follows:

a. At least ninety percent (90%) shall be allocated within Kentucky

as set forth in this section; and

b. Up to ten percent (10%) for administration and operation of the

corporation.

(c) Moneys from the Kentucky Thoroughbred development fund shall be

allocated to each licensed association in an amount equal to at least ninety

percent (90%) of the amount the association contributed to the fund.

(d) Moneys to the credit of the Kentucky Thoroughbred development fund at the

end of each fiscal year shall not lapse, but shall be carried forward in such

fund to the succeeding fiscal year.

(2) There is hereby established, under the general jurisdiction of t he Kentucky Horse

Racing and Gaming Corporation, a Kentucky Thoroughbred Development Fund

Advisory Committee. The advisory committee shall consist of five (5) members, all

of whom shall be residents of Kentucky, to be appointed by the chairman of the

Kentucky Horse Racing and Gaming Corporation by July 1 of each year. The

committee shall consist of two (2) Thoroughbred breeders recommended by the

Kentucky Thoroughbred Owners and Breeders, Inc.; one (1) Thoroughbred owner

recommended by the Kentucky division of the Horsemen's Benevolent and

Protective Association; one (1) officer or director of a licensed association

conducting Thoroughbred racing in Kentucky, recommended by action of all of the

licensed associations conducting Thoroughbred racing in Kentucky ; and one (1)

member of the Kentucky Horse Racing and Gaming Corporation. If any member

other than the corporation member has not been recommended for appointment by

July 1 of each year, the chairman of the Kentucky Horse Racing and Gaming

Corporation shall make an appointment for the organization or organizations failing

to recommend a member of the committee. The members of the advisory committee

shall serve without compensation, but shall be entitled to reimbursement for all

expenses incurred in the disc harge of official business. The advisory committee

shall select from its membership annually a chairman and a vice chairman.

(3) (a) The Kentucky Thoroughbred Development Fund Advisory Committee shall

advise and assist the Kentucky Horse Racing and Gaming Corporation in the

development of the supplemental purse program provided herein for

Kentucky-bred Thoroughbreds, shall make recommendations to the

corporation with respect to the establishment of guidelines, administrative

regulations for the provision of supplemental purses, the amount thereof, the

races for which the purses are to be provided and the conditions thereof,

manner and method of payment of supplemental purses, registry of

Thoroughbred stallions standing within the Commonwealth of Kentucky,

registry of Kentucky -bred Thoroughbreds for purposes of this section, nature

and type of forms and reports to be employed and required in connection with

the establishment, provision for, award and payment of supplemental purses,

and with respect to all other matters necessary in connection with the carrying

out of the intent and purposes of this section.

(b) The Kentucky Horse Racing and Gaming Corporation shall employ qualified

personnel as may be required to assist the corporation and the advisory

committee in carrying out the provisions of this section. These persons shall

serve at the pleasure of the corporation and compensation for these personnel

shall be fixed by the corporation.

(4) The Kentucky Horse Racing and Gaming Corporation, with the advice and

assistance of the Kentucky Thoroughbred Development Fund Advisory Committee,

shall use the Kentucky Thoroughbred development fund to promote, enhance,

improve, and encourage the further and continued development of the

Thoroughbred breeding industry in Ke ntucky by providing, out of the Kentucky

Thoroughbred development fund, supplemental purses for designated stakes,

handicap, allowance, nonclaiming maiden races, and claiming races contested at

licensed Thoroughbred race meetings in Kentucky. The Kentucky Horse Racing

and Gaming Corporation may, by administrative regulation promulgated in

accordance with KRS Chapter 13A, establish the requirements, conditions, and

procedures for awarding and payment of supplemental purses in designated races

by Kentucky -bred Thoroughbred horses. That portion of the supplemental purse

provided for any designated race shall be awarded and paid to the owner of the

horse only if the horse is a Kentucky -bred Thoroughbred duly registered with the

official registrar. Any portion of the supplemental purse which is not awarded and

paid over shall be returned to the Kentucky Thoroughbred development fund.

(5) (a) For purposes of this section, the term "Kentucky Thoroughbred stallion" shall

mean and include only a Thoroughbred stallion standing the entire breeding

season in Kentucky and registered as a Kentucky Thoroughbred stallion with

the official registrar of the Kentucky Thoroughbred development fund.

(b) Except for Thoroughbred horses foaled prior to January 1, 1980, the term

"Kentucky-bred Thoroughbreds," for purposes of this section, shall mean and

include only Thoroughbred horses sired by Kentucky Thoroughbred stallions

foaled in Kentucky and registered as a Kentucky -bred Thoroughbred with the

official registrar of the Kentucky Thoroughbred development fund.

(c) Any Thoroughbred horse foaled prior to January 1, 1980, may qualify as a

Kentucky-bred Thoroughbred for purposes of this section if the horse was

foaled in Kentucky and if the sire of the Thoroughbred was standing at stud

within Kentucky at the time of conception of such Thoroughbred, provided

the Thoroughbred is duly registered as a Kentucky -bred Thoroughbred with

the official registrar of the Kentucky Thoroughbred development fund.

(d) In order for an owner of a Kentucky -sired Thoroughbred to be eligible to

demand, claim, and receive a portion of a supplemental purse provided by the

Kentucky Thoroughbred development fund, the Thoroughbred horse in a

designated race for which a supplemental purse has been provided by the

Kentucky Thoroughbred development fund shall have been duly registered as

a Kentucky -bred Thoroughbred with the official registrar of the Kentucky

Thoroughbred development fund prior to entry in the race.

(6) (a) Kentucky Thoroughbred Owners and Breeders, In c., is hereby recognized and

designated as the sole official registrar of the Kentucky Thoroughbred

development fund for the purposes of registering Kentucky Thoroughbred

stallions and Kentucky -bred Thoroughbreds in accordance with the terms of

this section and any administrative regulations promulgated by the Kentucky

Horse Racing and Gaming Corporation. When a Kentucky -bred

Thoroughbred is registered with the official registrar, the registrar shall be

authorized to stamp the certificate issued for the Tho roughbred with the seal

of the registrar, certifying that the Thoroughbred is a duly qualified and

registered Kentucky -bred Thoroughbred for purposes of this section. The

registrar may establish and charge, with the approval of the corporation,

reasonable registration fees for its services in the registration of Kentucky

Thoroughbred stallions and in the registration of Kentucky -bred

Thoroughbreds. Registration records of the registrar shall be public records

and open to public inspection at all normal business hours and times.

(b) Any interested party aggrieved by the failure or refusal of the official registrar

to register a stallion or Thoroughbred as a Kentucky stallion or as a Kentucky-

bred Thoroughbred shall have the right to file with the registrar, w ithin thirty

(30) days of such failure or refusal of the registrar, a petition seeking

registration of the Thoroughbred. The corporation shall promptly hear the

matter de novo and issue its order directing the official registrar to register or

not to register as it may be determined by the registrar.

(7) The Kentucky Horse Racing and Gaming Corporation may promulgate

administrative regulations to carry out the provisions and purposes of this section,

including the promulgation of administrative regulations and forms for the proper

registration of Kentucky stallions and Kentucky -bred Thoroughbreds with the

official registrar, and shall administer the Kentucky -bred Thoroughbred program

created hereby in a manner best designed to promote and aid in the further

development of the Thoroughbred breeding industry in Kentucky, to upgrade the

quality of Thoroughbred racing in Kentucky, and to improve the quality of

Thoroughbred horses bred in Kentucky.