1Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2Statutes, in revenues, further providing for distributions
3from Pennsylvania Race Horse Development Fund.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Section 1406(a) of Title 4 of the Pennsylvania
7Consolidated Statutes is amended to read:

8§ 1406. Distributions from Pennsylvania Race Horse Development
9Fund.

10(a) Distributions.--Funds in the Pennsylvania Race Horse
11Development Fund are hereby appropriated to the department on a 
12continuing basis for the purposes set forth in this subsection 
13and shall be distributed to each active and operating Category 1
14licensee conducting live racing as follows:

15(1) An amount equal to 18% of the daily gross terminal
16revenue of each Category 1 licensee shall be distributed to
17each active and operating Category 1 licensee conducting live

1racing unless the daily assessments are affected by the daily
2assessment cap provided for in section 1405(c) (relating to
3Pennsylvania Race Horse Development Fund). In cases in which
4the daily assessment cap affects daily assessments, the
5distribution to each active and operating Category 1 licensee
6conducting live racing for that day shall be a percentage of
7the total daily assessments paid into the Pennsylvania Race
8Horse Development Fund for that day equal to the gross
9terminal revenue of each active and operating Category 1
10licensee conducting live racing for that day divided by the
11total gross terminal revenue of all active and operating
12Category 1 licensees conducting live racing for that day.
13[Except as provided in paragraphs (2) and (2.1), the] The
14distributions to licensed racing entities from the
15Pennsylvania Race Horse Development Fund shall be allocated
16as follows:

17(i) Eighty percent shall be deposited weekly into a
18separate, interest-bearing purse account to be
19established by and for the benefit of the horsemen. The
20earned interest on the account shall be credited to the
21purse account. Licensees shall combine these funds with
22revenues from existing purse agreements to fund purses
23for live races consistent with those agreements with the
24advice and consent of the horsemen.

25(ii) For thoroughbred tracks, 16% shall be deposited
26on a monthly basis into the Pennsylvania Breeding Fund as
27defined in section 223 of the Race Horse Industry Reform
28Act. For standardbred tracks, 8% shall be deposited on a
29monthly basis in the Pennsylvania Sire Stakes Fund as
30defined in section 224 of the Race Horse Industry Reform

1Act, and 8% shall be deposited on a monthly basis into a
2restricted account in the State Racing Fund to be known
3as the Pennsylvania Standardbred Breeders Development
4Fund. The State Harness Racing Commission shall, in
5consultation with the Secretary of Agriculture by rule or
6by regulation, adopt a standardbred breeders program that
7will include the administration of Pennsylvania Stallion
8Award, Pennsylvania Bred Award and a Pennsylvania Sired
9and Bred Award.

10(iii) Four percent shall be used to fund health and
11pension benefits for the members of the horsemen's
12organizations representing the owners and trainers at the
13racetrack at which the licensed racing entity operates
14for the benefit of the organization's members, their
15families, employees and others in accordance with the
16rules and eligibility requirements of the organization,
17as approved by the State Horse Racing Commission or the
18State Harness Racing Commission. This amount shall be
19deposited within five business days of the end of each
20month into a separate account to be established by each
21respective horsemen's organization at a banking
22institution of its choice. Of this amount, $250,000 shall
23be paid annually by the horsemen's organization to the
24thoroughbred jockeys or standardbred drivers organization
25at the racetrack at which the licensed racing entity
26operates for health insurance, life insurance or other
27benefits to active and disabled thoroughbred jockeys or
28standardbred drivers in accordance with the rules and
29eligibility requirements of that organization.

30[(2) Beginning January 1, 2010, and for the remainder of
 

1fiscal year 2009-2010, distributions from the Pennsylvania 
2Race Horse Development Fund shall be allocated as follows:

3(i) Each week, 34% of the money in the Pennsylvania
4Race Horse Development Fund shall be transferred to the
5General Fund.

6(ii) Each week, 66% of the money in the Pennsylvania
7Race Horse Development Fund shall be distributed to each
8active and operating Category 1 licensee conducting live
9racing in accordance with the following formula:

10(A) Divide:

11(I) the total daily assessments paid by each
12active and operating Category 1 licensee
13conducting live racing into the Pennsylvania Race
14Horse Development Fund for that week; by

15(II) the total daily assessments paid by all
16active and operating Category 1 licensees
17conducting live racing into the Pennsylvania Race
18Horse Development Fund for that week.

19(B) Multiply the quotient under clause (A) by
20the amount to be distributed under this subparagraph.

21(iii) The distribution under subparagraph (ii) shall
22be allocated as follows:

23(A) The greater of 4% of the amount to be
24distributed under subparagraph (ii) or $275,000 shall 
25be used to fund health and pension benefits for the 
26members of the horsemen's organizations representing 
27the owners and trainers at the racetrack at which the 
28licensed racing entity operates for the benefit of 
29the organization's members, their families, employees 
30and others in accordance with the rules and
 

1eligibility requirements of the organization, as 
2approved by the State Horse Racing Commission or the 
3State Harness Racing Commission. This amount shall be 
4deposited within five business days of the end of 
5each week into a separate account to be established 
6by each respective horsemen's organization at a 
7banking institution of its choice. Of this amount, a 
8minimum of $250,000 shall be paid annually by the 
9horsemen's organization to the thoroughbred jockeys 
10or standardbred drivers organization at the racetrack 
11at which the licensed racing entity operates for 
12health insurance, life insurance or other benefits to 
13active and disabled thoroughbred jockeys or 
14standardbred drivers in accordance with the rules and 
15eligibility requirements of that organization. The 
16total distributions for health and pension benefits 
17for fiscal year 2009-2010 shall not exceed 
18$11,400,000.

19(B) Of the money remaining to be distributed
20under subparagraph (ii) after application of clause
21(A), the following disbursements shall be made:

22(I) Eighty-three and one-third percent of
23the money to be distributed under this clause
24shall be deposited on a weekly basis into a
25separate, interest-bearing purse account to be
26established by and for the benefit of the
27horsemen. The earned interest on the account
28shall be credited to the purse account. Licensees
29shall combine these funds with revenues from
30existing purse agreements to fund purses for live

1races consistent with those agreements with the
2advice and consent of the horsemen.

3(II) For thoroughbred tracks, 16 and 2/3% of
4the money to be distributed under this clause
5shall be deposited on a weekly basis into the
6Pennsylvania Breeding Fund established in section
7223 of the Race Horse Industry Reform Act. For
8standardbred tracks, 8 and 1/3% of the money to
9be distributed under this clause shall be
10deposited on a weekly basis into the Pennsylvania
11Sire Stakes Fund as defined in section 224 of the
12Race Horse Industry Reform Act; and 8 and 1/3% of
13the money to be distributed under this clause
14shall be deposited on a weekly basis into a
15restricted account in the State Racing Fund to be
16known as the Pennsylvania Standardbred Breeders
17Development Fund. The State Harness Racing
18Commission shall, in consultation with the
19Secretary of Agriculture, promulgate regulations
20adopting a standardbred breeders program that
21will include the administration of the
22Pennsylvania Stallion Award, the Pennsylvania
23Bred Award and the Pennsylvania Sired and Bred
24Award.

25(2.1) For fiscal years 2010-2011 through 2012-2013,
26distributions from the Pennsylvania Race Horse Development
27Fund shall be allocated as follows:

28(i) Each week, 17% of the money in the Pennsylvania
29Race Horse Development Fund shall be transferred to the
30General Fund.

1(ii) Each week, 83% of the money in the Pennsylvania
2Race Horse Development Fund shall be distributed to each
3active and operating Category 1 licensee conducting live
4racing in accordance with the following formula:

5(A) Divide:

6(I) the total daily assessments paid, by
7each active and operating Category 1 licensee
8conducting live racing, into the Pennsylvania
9Race Horse Development Fund for that week; by

10(II) the total daily assessments paid, by
11all active and operating Category 1 licensees
12conducting live racing, into the Pennsylvania
13Race Horse Development Fund for that week.

14(B) Multiply the quotient under clause (A) by
15the amount to be distributed under this subparagraph.

16(iii) The distribution under subparagraph (ii) shall
17be allocated as follows:

18(A) The greater of 4% of the amount to be
19distributed under subparagraph (ii) or $220,000 shall 
20be used to fund health and pension benefits for the 
21members of the horsemen's organizations representing 
22the owners and trainers at the racetrack at which the 
23licensed racing entity operates for the benefit of 
24the organization's members, their families, employees 
25and others in accordance with the rules and 
26eligibility requirements of the organization, as 
27approved by the State Horse Racing Commission or the 
28State Harness Racing Commission. This amount shall be 
29deposited within five business days of the end of 
30each week into a separate account to be established
 

1by each respective horsemen's organization at a 
2banking institution of its choice. Of this amount, a 
3minimum of $250,000 shall be paid annually by the 
4horsemen's organization to the thoroughbred jockeys 
5or standardbred drivers organization at the racetrack 
6at which the licensed racing entity operates for 
7health insurance, life insurance or other benefits to 
8active and disabled thoroughbred jockeys or 
9standardbred drivers in accordance with the rules and 
10eligibility requirements of that organization. The 
11total distribution under this clause in any fiscal 
12year shall not exceed $11,400,000.

13(B) Of the money remaining to be distributed
14under subparagraph (ii) after application of clause
15(A), the following disbursements shall be made:

16(I) Eighty-three and one-third percent of
17the money to be distributed under this clause
18shall be deposited on a weekly basis into a
19separate, interest-bearing purse account to be
20established by and for the benefit of the
21horsemen. The earned interest on the account
22shall be credited to the purse account. Licensees
23shall combine these funds with revenues from
24existing purse agreements to fund purses for live
25races consistent with those agreements with the
26advice and consent of the horsemen.

27(II) For thoroughbred tracks, 16 and 2/3% of
28the money to be distributed under this clause
29shall be deposited on a weekly basis into the
30Pennsylvania Breeding Fund established in section

1223 of the Race Horse Industry Reform Act. For
2standardbred tracks, 8 and 1/3% of the money to
3be distributed under this clause shall be
4deposited on a weekly basis into the Pennsylvania
5Sire Stakes Fund as defined in section 224 of the
6Race Horse Industry Reform Act; and 8 and 1/3% of
7the money to be distributed under this clause
8shall be deposited on a weekly basis into a
9restricted account in the State Racing Fund to be
10known as the Pennsylvania Standardbred Breeders
11Development Fund. The State Harness Racing
12Commission shall, in consultation with the
13Secretary of Agriculture, promulgate regulations
14adopting a standardbred breeders program that
15will include the administration of the
16Pennsylvania Stallion Award, the Pennsylvania
17Bred Award and the Pennsylvania Sired and Bred
18Award.]

19(3) No moneys of the Pennsylvania Race Horse Development
20Fund may be transferred to the General Fund.

21* * *

22Section 2. This act shall take effect immediately.