KRS 230.800: Kentucky Thoroughbred breeders incentive fund -- Contributions --

Purposes -- Distribution -- Administrative regulations.

(1) There is hereby created a corporate account for the Kentucky Horse Racing and

Gaming Corporation designated as the "Ke ntucky Thoroughbred breeders incentive

fund." The fund shall be administered by the corporation. For all tax periods

beginning on or after June 1, 2005, eighty percent (80%) of all receipts collected

under KRS 139.531(1)(a) from the sales and use tax on th e fees paid for breeding a

stallion to a mare in Kentucky shall be transferred to the corporation for deposit in

the fund together with any other money contributed, appropriated, or allocated to

the fund from all other sources. Any money remaining in the f und at the close of

any calendar year shall not lapse but shall be carried forward to the next calendar

year. The fund may also receive additional state appropriations, gifts, grants, and

federal funds. All interest earned on money in the fund shall be credited to the fund.

(2) (a) The Kentucky Horse Racing and Gaming Corporation shall use moneys

deposited in the Kentucky Thoroughbred breeders incentive fund to

administer the fund and provide rewards for breeders of horses bred and

foaled in Kentucky to be divided as follows:

1. At least ninety percent (90%) shall be allocated to provide the breeder

rewards as set forth in this section; and

2. Up to ten percent (10%) may be allocated for administration and

operation of the corporation.

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

administrative regulations establishing the conditions and criteria for the

distribution of moneys from the fund.

(c) The Department of Revenue may promulgate administrative regulations

establishing the procedu res necessary to determine the correct allocation of

sales tax receipts described in subsection (1) of this section.

(d) As soon as practicable after the close of each calendar year, the corporation

shall disburse to breeders of horses moneys in the Kentuc ky Thoroughbred

breeders incentive fund pursuant to the administrative regulations

promulgated pursuant to paragraph (b) of this subsection.