KRS 230.804: Kentucky horse breeders incentive fund -- Contributions -- Purposes --

Distribution -- Administrative regulations.

(1) There is hereby created a corporate fund designated as the "Kentucky horse

breeders incentive fund." The fund shall be in t he Kentucky Horse Racing and

Gaming Corporation. For tax periods beginning on or after June 1, 2005, seven

percent (7%) of all receipts collected under KRS 139.531(1)(a) from the sales and

use tax on the fees paid for breeding a stallion to a mare in Kentu cky shall be

deposited in the fund together with any other money contributed, appropriated, or

allocated to the fund from all other sources. The money deposited in the fund is

hereby appropriated for the uses set forth in this section. Notwithstanding KRS

45.229, any money remaining in the fund 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 horse breeders incentive fund to administer the

fund and provide rewards for breeders or owners of ho rses 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 administrati ve regulations

establishing the procedures 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 Kentucky horse breeders

incentive fund to be used to promote, enhance, improve, and encourage the

further and continued development of the horse industry in Kentucky, under

the administrative regulations promulgated pursuan t to paragraph (b) of this

subsection.