RELATES TO: KRS 138.510, 230.215, 230.225(5)(c), 230.400
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.215(1) requires
that it is the policy and intent of the Commonwealth to foster and to encourage
the business of legitimate horse racing with pari-mutuel wagering thereon in
the Commonwealth on the highest possible plane. KRS 230.215(2) authorizes the
corporation to forcefully control horse racing in the Commonwealth with plenary
power to promulgate administrative regulations establishing conditions under
which all legitimate horse racing and wagering thereon is conducted in the
Commonwealth so as to encourage the improvement of the breeds of horses in the
Commonwealth and to regulate and maintain horse racing at horse race meetings
in the Commonwealth of the highest quality. KRS 230.225(5)(c) authorizes
corporation to recommend tax incentives and to implement incentive programs to
ensure the strength and growth of the equine industry. KRS 230.400 establishes
the Kentucky Thoroughbred Development Fund and requires the Kentucky Horse
Racing and Gaming Corporation to promulgate administrative regulations as may
be necessary to carry out its provisions and purposes. This administrative
regulation establishes standards for eligibility and the administration of
payments from the Kentucky Thoroughbred Development Fund.
Section 1. Definitions.
(1) "KTDF" means the Kentucky Thoroughbred
Development Fund, as established by KRS 230.400.
(2) "KTDF Advisory Committee" means a five
(5) member committee established by KRS 230.400.
(3) "KTOB" means the Kentucky Thoroughbred
Owners and Breeders, Inc., as the official registrar for the KTDF in accordance
with KRS 230.400.
(4) "Licensed
association" means a person or legal entity conducting horse racing pursuant to
a license issued under
810 KAR 3:010.
Section 2. KTDF Monies Earned. Money shall be
allocated to the credit of each licensed association in the amount the licensed
association contributed to the KTDF pursuant to KRS 230.400.
Section 3. KTDF Reconciliation.
(1) Each licensed association shall file with
the corporation a copy of the pari-mutuel tax form filed with the Department of
Revenue, along with a copy of the check submitted for each report. These
reports shall be filed weekly.
(2)
The corporation shall reconcile the weekly reports submitted by the licensed
association with the Department of Revenue's reports and deposits on a monthly
basis.
(3) If at the close of a
live race meet, a licensed association has a surplus balance of KTDF monies
earned pursuant to
KRS 230.400, then the licensed association may request to
distribute a portion of that balance, contingent on the recommendation of the
KTDF Advisory Committee and the approval of the corporation to:
(a) Supplement purses at future live racing
meets held by that licensed association;
(b) Fund supplemental purse structures
approved by the corporation for a previous live racing meet held by the
licensed association to the recipients of the original purse allocation;
or
(c) Supplement purses at another
licensed thoroughbred Kentucky racetrack.
(4) Reasonable and customary administrative
charges for time spent reconciling the KTDF account may be charged by the
corporation to each licensed association based on the percentage of funds
generated by each licensed association for the previous calendar
year.
(5) A licensed association,
at its option, may pay reasonable advertising charges billed to the association
by the KTOB from the association's KTDF available balance, if the advertising
charges are consistent with the intent of the KTDF. Approval of any advertising
payment shall be contingent on the recommendation of the KTDF Advisory
Committee and the approval of the corporation.
(6)
(a)
Each licensed association shall submit its purses paid reports, advertising
invoices, or any other documentation requested by the corporation, pertinent to
reimbursement, within fifteen (15) calendar days after the last day of a live
race meet.
(b) Each licensed
association shall sign an acknowledgment from the corporation stating that it
accepts and agrees with the reconciliation prior to the reimbursement of any
KTDF funds.
Section
4. Purse Structure. Each licensed association shall submit its
KTDF purse structure proposal to the KTDF Advisory Committee for approval at
least forty-five (45) days prior to the opening day of the live racing meet.
The KTDF Advisory Committee shall review the proposed purse structure and make
a recommendation to the corporation whether to approve the proposed purse
structure based upon the best interests of Kentucky racing.
