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91_HB4165eng HB4165 Engrossed LRB9111831LDprA 1 AN ACT to amend the Illinois Horse Racing Act of 1975 by 2 changing Section 30. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Horse Racing Act of 1975 is 6 amended by changing Section 30 as follows: 7 (230 ILCS 5/30) (from Ch. 8, par. 37-30) 8 Sec. 30. (a) The General Assembly declares that it is 9 the policy of this State to encourage the breeding of 10 thoroughbred horses in this State and the ownership of such 11 horses by residents of this State in order to provide for: 12 sufficient numbers of high quality thoroughbred horses to 13 participate in thoroughbred racing meetings in this State, 14 and to establish and preserve the agricultural and commercial 15 benefits of such breeding and racing industries to the State 16 of Illinois. It is the intent of the General Assembly to 17 further this policy by the provisions of this Act. 18 (b) Each organization licensee conducting a thoroughbred 19 racing meeting pursuant to this Act shall provide at least 20 two races each day limited to Illinois conceived and foaled 21 horses or Illinois foaled horses or both. A minimum of 6 22 races shall be conducted each week limited to Illinois 23 conceived and foaled or Illinois foaled horses or both. No 24 horses shall be permitted to start in such races unless duly 25 registered under the rules of the Department of Agriculture. 26 (c) Conditions of races under subsection (b) shall be 27 commensurate with past performance, quality, and class of 28 Illinois conceived and foaled and Illinois foaled horses 29 available. If, however, sufficient competition cannot be had 30 among horses of that class on any day, the races may, with 31 consent of the Board, be eliminated for that day and HB4165 Engrossed -2- LRB9111831LDprA 1 substitute races provided. 2 (d) There is hereby created a special fund of the State 3 Treasury to be known as the Illinois Thoroughbred Breeders 4 Fund. 5 Except as provided in subsection (g) of Section 27 of 6 this Act, 8.5% of all the monies received by the State as 7 privilege taxes on Thoroughbred racing meetings shall be paid 8 into the Illinois Thoroughbred Breeders Fund. 9 (e) The Illinois Thoroughbred Breeders Fund shall be 10 administered by the Department of Agriculture with the advice 11 and assistance of the Advisory Board created in subsection 12 (f) of this Section. 13 (f) The Illinois Thoroughbred Breeders Fund Advisory 14 Board shall consist of the Director of the Department of 15 Agriculture, who shall serve as Chairman; a member of the 16 Illinois Racing Board, designated by it; 2 representatives of 17 the organization licensees conducting thoroughbred racing 18 meetings, recommended by them; 2 representatives of the 19 Illinois Thoroughbred Breeders and Owners Foundation, 20 recommended by it; and 2 representatives of the Horsemen's 21 Benevolent Protective Association or any successor 22 organization established in Illinois comprised of the largest 23 number of owners and trainers, recommended by it, with one 24 representative of the Horsemen's Benevolent and Protective 25 Association to come from its Illinois Division, and one from 26 its Chicago Division. Advisory Board members shall serve for 27 2 years commencing January 1 of each odd numbered year. If 28 representatives of the organization licensees conducting 29 thoroughbred racing meetings, the Illinois Thoroughbred 30 Breeders and Owners Foundation, and the Horsemen's Benevolent 31 Protection Association have not been recommended by January 32 1, of each odd numbered year, the Director of the Department 33 of Agriculture shall make an appointment for the organization 34 failing to so recommend a member of the Advisory Board. HB4165 Engrossed -3- LRB9111831LDprA 1 Advisory Board members shall receive no compensation for 2 their services as members but shall be reimbursed for all 3 actual and necessary expenses and disbursements incurred in 4 the execution of their official duties. 5 (g) No monies shall be expended from the Illinois 6 Thoroughbred Breeders Fund except as appropriated by the 7 General Assembly. Monies appropriated from the Illinois 8 Thoroughbred Breeders Fund shall be expended by the 9 Department of Agriculture, with the advice and assistance of 10 the Illinois Thoroughbred Breeders Fund Advisory Board, for 11 the following purposes only: 12 (1) To provide purse supplements to owners of 13 horses participating in races limited to Illinois 14 conceived and foaled and Illinois foaled horses. Any 15 such purse supplements shall not be included in and shall 16 be paid in addition to any purses, stakes, or breeders' 17 awards offered by each organization licensee as 18 determined by agreement between such organization 19 licensee and an organization representing the horsemen. 20 No monies from the Illinois Thoroughbred Breeders Fund 21 shall be used to provide purse supplements for claiming 22 races in which the minimum claiming price is less than 23 $7,500. 24 (2) To provide stakes and awards to be paid to the 25 owners of the winning horses in certain races limited to 26 Illinois conceived and foaled and Illinois foaled horses 27 designated as stakes races. 28 (2.5) To provide an award to the owner or owners of 29 an Illinois conceived and foaled or Illinois foaled horse 30 that wins a maiden special weight, an allowance, 31 overnight handicap race, or claiming race with claiming 32 price of $10,000 or more providing the race is not 33 restricted to Illinois conceived and foaled or Illinois 34 foaled horses. Awards shall also be provided to the HB4165 Engrossed -4- LRB9111831LDprA 1 owner or owners of Illinois conceived and foaled and 2 Illinois foaled horses that place second or third in 3 those races. To the extent that additional moneys are 4 required to pay the minimum additional awards of 40% of 5 the purse the horse earns for placing first, second or 6 third in those races for Illinois foaled horses and of 7 60% of the purse the horse earns for placing first, 8 second or third in those races for Illinois conceived and 9 foaled horses, those moneys shall be provided from the 10 purse account at the track where earned. 11 (3) To provide stallion awards to the owner or 12 owners of any stallion that is duly registered with the 13 Illinois Thoroughbred Breeders Fund Program prior to the 14 effective date of this amendatory Act of 1995 whose duly 15 registered Illinois conceived and foaled offspring wins a 16 race conducted at an Illinois thoroughbred racing meeting 17 other than a claiming race. Such award shall not be paid 18 to the owner or owners of an Illinois stallion that 19 served outside this State at any time during the calendar 20 year in which such race was conducted. 21 (4) To provide $75,000 annually for purses to be 22 distributed to county fairs that provide for the running 23 of races during each county fair exclusively for the 24 thoroughbreds conceived and foaled in Illinois. The 25 conditions of the races shall be developed by the county 26 fair association and reviewed by the Department with the 27 advice and assistance of the Illinois Thoroughbred 28 Breeders Fund Advisory Board. There shall be no wagering 29 of any kind on the running of Illinois conceived and 30 foaled races at county fairs. 31 (4.1) To provide purse money for an Illinois 32 stallion stakes program. 33 (5) No less than 80% of all monies appropriated 34 from the Illinois Thoroughbred Breeders Fund shall be HB4165 Engrossed -5- LRB9111831LDprA 1 expended for the purposes in (1), (2), (2.5), (3), (4), 2 (4.1), and (5) as shown above. 3 (6) To provide for educational programs regarding 4 the thoroughbred breeding industry. 5 (7) To provide for research programs concerning the 6 health, development and care of the thoroughbred horse. 7 (8) To provide for a scholarship and training 8 program for students of equine veterinary medicine. 9 (9) To provide for dissemination of public 10 information designed to promote the breeding of 11 thoroughbred horses in Illinois. 12 (10) To provide for all expenses incurred in the 13 administration of the Illinois Thoroughbred Breeders 14 Fund. 15 (h) Whenever the Governor finds that the amount in the 16 Illinois Thoroughbred Breeders Fund is more than the total of 17 the outstanding appropriations from such fund, the Governor 18 shall notify the State Comptroller and the State Treasurer of 19 such fact. The Comptroller and the State Treasurer, upon 20 receipt of such notification, shall transfer such excess 21 amount from the Illinois Thoroughbred Breeders Fund to the 22 General Revenue Fund. 23 (i) A sum equal to 12 1/2% of the first prize money of 24 every purse won by an Illinois foaled or an Illinois 25 conceived and foaled horse in races not limited to Illinois 26 foaled horses or Illinois conceived and foaled horses, or 27 both, shall be paid by the organization licensee conducting 28 the horse race meeting. Such sum shall be paid from the 29 organization licensee's share of the money wagered as 30 follows: 11 1/2% to the breeder of the winning horse and 1% 31 to the organization representing thoroughbred breeders and 32 owners whose representative serves on the Illinois 33 Thoroughbred Breeders Fund Advisory Board for verifying the 34 amounts of breeders' awards earned, assuring their HB4165 Engrossed -6- LRB9111831LDprA 1 distribution in accordance with this Act, and servicing and 2 promoting the Illinois thoroughbred horse racing industry. 3 The organization representing thoroughbred breeders and 4 owners shall cause all expenditures of monies received under 5 this subsection (i) to be audited at least annually by a 6 registered public accountant. The organization shall file 7 copies of each annual audit with the Racing Board, the Clerk 8 of the House of Representatives and the Secretary of the 9 Senate, and shall make copies of each annual audit available 10 to the public upon request and upon payment of the reasonable 11 cost of photocopying the requested number of copies. Such 12 payments shall not reduce any award to the owner of the horse 13 or reduce the taxes payable under this Act. Upon completion 14 of its racing meet, each organization licensee shall deliver 15 to the organization representing thoroughbred breeders and 16 owners whose representative serves on the Illinois 17 Thoroughbred Breeders Fund Advisory Board a listing of all 18 the Illinois foaled and the Illinois conceived and foaled 19 horses which won breeders' awards and the amount of such 20 breeders' awards under this subsection to verify accuracy of 21 payments and assure proper distribution of breeders' awards 22 in accordance with the provisions of this Act. Such payments 23 shall be delivered by the organization licensee within 30 24 days of the end of each race meeting. 25 (j) A sum equal to 12 1/2% of the first prize money won 26 in each race limited to Illinois foaled horses or Illinois 27 conceived and foaled horses, or both, shall be paid in the 28 following manner by the organization licensee conducting the 29 horse race meeting, from the organization licensee's share of 30 the money wagered: 11 1/2% to the breeders of the horses in 31 each such race which are the official first, second, third 32 and fourth finishers and 1% to the organization representing 33 thoroughbred breeders and owners whose representative serves 34 on the Illinois Thoroughbred Breeders Fund Advisory Board for HB4165 Engrossed -7- LRB9111831LDprA 1 verifying the amounts of breeders' awards earned, assuring 2 their proper distribution in accordance with this Act, and 3 servicing and promoting the Illinois thoroughbred horse 4 racing industry. The organization representing thoroughbred 5 breeders and owners shall cause all expenditures of monies 6 received under this subsection (j) to be audited at least 7 annually by a registered public accountant. The organization 8 shall file copies of each annual audit with the Racing Board, 9 the Clerk of the House of Representatives and the Secretary 10 of the Senate, and shall make copies of each annual audit 11 available to the public upon request and upon payment of the 12 reasonable cost of photocopying the requested number of 13 copies. 14 The 11 1/2% paid to the breeders in accordance with this 15 subsection shall be distributed as follows: 16 (1) 60% of such sum shall be paid to the breeder of 17 the horse which finishes in the official first position; 18 (2) 20% of such sum shall be paid to the breeder of 19 the horse which finishes in the official second position; 20 (3) 15% of such sum shall be paid to the breeder of 21 the horse which finishes in the official third position; 22 and 23 (4) 5% of such sum shall be paid to the breeder of 24 the horse which finishes in the official fourth position. 25 Such payments shall not reduce any award to the owners of 26 a horse or reduce the taxes payable under this Act. Upon 27 completion of its racing meet, each organization licensee 28 shall deliver to the organization representing thoroughbred 29 breeders and owners whose representative serves on the 30 Illinois Thoroughbred Breeders Fund Advisory Board a listing 31 of all the Illinois foaled and the Illinois conceived and 32 foaled horses which won breeders' awards and the amount of 33 such breeders' awards in accordance with the provisions of 34 this Act. Such payments shall be delivered by the HB4165 Engrossed -8- LRB9111831LDprA 1 organization licensee within 30 days of the end of each race 2 meeting. 3 (k) The term "breeder", as used herein, means the owner 4 of the mare at the time the foal is dropped. An "Illinois 5 foaled horse" is a foal dropped by a mare which enters this 6 State on or before December 1, in the year in which the horse 7 is bred, provided the mare remains continuously in this State 8 until its foal is born. An "Illinois foaled horse" also means 9 a foal born of a mare in the same year as the mare enters 10 this State on or before March 1, and remains in this State at 11 least 30 days after foaling, is bred back during the season 12 of the foaling to an Illinois Registered Stallion (unless a 13 veterinarian certifies that the mare should not be bred for 14 health reasons), and is not bred to a stallion standing in 15 any other state during the season of foaling. An "Illinois 16 foaled horse" also means a foal born in Illinois of a mare 17 purchased at public auction subsequent to the mare entering 18 this State prior to February 1 of the foaling year providing 19 the mare is owned solely by one or more Illinois residents or 20 an Illinois entity that is entirely owned by one or more 21 Illinois residents. 22 (l) The Department of Agriculture shall, by rule, with 23 the advice and assistance of the Illinois Thoroughbred 24 Breeders Fund Advisory Board: 25 (1) Qualify stallions for Illinois breeding; such 26 stallions to stand for service within the State of 27 Illinois at the time of a foal's conception. Such 28 stallion must not stand for service at any place outside 29 the State of Illinois during the calendar year in which 30 the foal is conceived. The Department of Agriculture may 31 assess and collect application fees for the registration 32 of Illinois-eligible stallions. All fees collected are 33 to be paid into the Illinois Thoroughbred Breeders Fund. 34 (2) Provide for the registration of Illinois HB4165 Engrossed -9- LRB9111831LDprA 1 conceived and foaled horses and Illinois foaled horses. 2 No such horse shall compete in the races limited to 3 Illinois conceived and foaled horses or Illinois foaled 4 horses or both unless registered with the Department of 5 Agriculture. The Department of Agriculture may prescribe 6 such forms as are necessary to determine the eligibility 7 of such horses. The Department of Agriculture may assess 8 and collect application fees for the registration of 9 Illinois-eligible foals. All fees collected are to be 10 paid into the Illinois Thoroughbred Breeders Fund. No 11 person shall knowingly prepare or cause preparation of an 12 application for registration of such foals containing 13 false information. 14 (m) The Department of Agriculture, with the advice and 15 assistance of the Illinois Thoroughbred Breeders Fund 16 Advisory Board, shall provide that certain races limited to 17 Illinois conceived and foaled and Illinois foaled horses be 18 stakes races and determine the total amount of stakes and 19 awards to be paid to the owners of the winning horses in such 20 races. 21 In determining the stakes races and the amount of awards 22 for such races, the Department of Agriculture shall consider 23 factors, including but not limited to, the amount of money 24 appropriated for the Illinois Thoroughbred Breeders Fund 25 program, organization licensees' contributions, availability 26 of stakes caliber horses as demonstrated by past 27 performances, whether the race can be coordinated into the 28 proposed racing dates within organization licensees' racing 29 dates, opportunity for colts and fillies and various age 30 groups to race, public wagering on such races, and the 31 previous racing schedule. 32 (n) The Board and the organizational licensee shall 33 notify the Department of the conditions and minimum purses 34 for races limited to Illinois conceived and foaled and HB4165 Engrossed -10- LRB9111831LDprA 1 Illinois foaled horses conducted for each organizational 2 licensee conducting a thoroughbred racing meeting. The 3 Department of Agriculture with the advice and assistance of 4 the Illinois Thoroughbred Breeders Fund Advisory Board may 5 allocate monies for purse supplements for such races. In 6 determining whether to allocate money and the amount, the 7 Department of Agriculture shall consider factors, including 8 but not limited to, the amount of money appropriated for the 9 Illinois Thoroughbred Breeders Fund program, the number of 10 races that may occur, and the organizational licensee's purse 11 structure. 12 (o) In order to improve the breeding quality of 13 thoroughbred horses in the State, the General Assembly 14 recognizes that existing provisions of this Section to 15 encourage such quality breeding need to be revised and 16 strengthened. As such, a Thoroughbred Breeder's Program Task 17 Force is to be appointed by the Governor by September 1, 1999 18 to make recommendations to the General Assembly by no later 19 than MayMarch1, 2000. This task force is to be composed of 20 2 representatives from the Illinois Thoroughbred Breeders and 21 Owners Foundation, 2 from the Illinois Thoroughbred 22 Horsemen's Association, 3 from Illinois race tracks operating 23 thoroughbred race meets for an average of at least 30 days in 24 the past 3 years, the Director of Agriculture, the Executive 25 Director of the Racing Board, who shall serve as Chairman. 26 (Source: P.A. 91-40, eff. 6-25-99.) 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.