810 KAR 1:070. Kentucky thoroughbred breeders’ incentive
fund.
RELATES TO: KRS 230.330,
230.800
STATUTORY AUTHORITY:
KRS 230.800
NECESSITY, FUNCTION,
AND CONFORMITY: KRS 230.800 establishes the Kentucky Thoroughbred Breeders’ Incentive
Fund (KBIF). KRS 230.800(2)(b) requires the commission to promulgate administrative
regulations establishing the conditions and criteria for the distribution of moneys
from the fund. This administrative regulation establishes eligibility standards,
administrative practices to enforce the standards, and the administration of payments
from the fund.
Section 1. Definitions.
(1) "Allowance race" means an overnight race for which eligibility and
weight to be carried is determined according to specified conditions which include
age, gender, earnings, and number of wins, excluding starter allowance races.
(2) "Claiming
earnings" means the gross cash portion, as this portion is determined by The
Jockey Club, of the prize awarded to a qualified Kentucky claiming horse that is
paid from the association or the license holder permitted to conduct racing in the
jurisdiction.
(3) "Claiming
race" means a race in which every horse running in the race may be transferred
in conformity with 810 KAR 1:015.
(4) "Grade I stakes
race" means a nonrestricted race held in the United States which has been assigned
Grade I stakes status for the year contested by the American Graded Stakes Committee
of the Thoroughbred Owners and Breeders Association.
(5) "Grade II
stakes race" means a nonrestricted race held in the United States which has
been assigned Grade II stakes status for the year contested by the American Graded
Stakes Committee of the Thoroughbred Owners and Breeders Association.
(6) "Grade III
stakes race" means a nonrestricted race held in the United States which has
been assigned Grade III stakes status for the year contested by the American Graded
Stakes Committee of the Thoroughbred Owners and Breeders Association.
(7) "Group I race"
means:
(a) A nonrestricted
race held in England, France, or Ireland which has been assigned Group I race status
for the year contested by the European Pattern Committee; or
(b) A nonrestricted
race held in Canada which has been assigned Canadian Grade I stakes status for the
year contested by the Canadian Graded Stakes Committee.
(8) "Group II
race" means:
(a) A nonrestricted
race held in England, France, or Ireland which has been assigned Group II race status
for the year contested by the European Pattern Committee; or
(b) A nonrestricted
race held in Canada which has been assigned Canadian Grade II stakes status for
the year contested by the Canadian Graded Stakes Committee.
(9) "Group III
race" means:
(a) A nonrestricted
race held in England, France, or Ireland which has been assigned Group III race
status for the year contested by the European Pattern Committee; or
(b) A nonrestricted
race held in Canada which has been assigned Canadian Grade III stakes status for
the year contested by the Canadian Graded Stakes Committee.
(10) "Intended
breeder of record" means the owner or lessee of a thoroughbred mare who desires
to use the mare for breeding purposes and to qualify the foal for the Kentucky Thoroughbred
Breeders’ Incentive Fund and who is listed as the intended breeder of record on
the forms necessary to register under the KBIF.
(11) "KBIF"
means the Kentucky Thoroughbred Breeders’ Incentive Fund.
(12) "KBIF registered
horse" means a horse registered with the Kentucky Thoroughbred Breeders’ Incentive
Fund.
(13) "Kentucky
sire" means a sire registered as a Kentucky Thoroughbred Development Fund sire.
(14) "Kentucky
Thoroughbred Breeders’ Incentive Fund" means the trust and revolving fund set
out in KRS 230.800.
(15) "Maiden special
weight race" means a race in which:
(a) None of the runners
have been previously declared a winner; and
(b) None of the runners
are eligible to be claimed.
(16) "Overnight
race" means a race for which entries close at a time set by the racing secretary.
(17) "Public auction"
means a thoroughbred auction conducted by a recognized member of the Society of
International Thoroughbred Auctioneers, or other similar public auction approved
by the KBIF advisory committee.
(18) "Qualified
breeder" means the breeder of record as listed in The Jockey Club records.
(19) "Qualified
Kentucky claiming horse" means a foal who is born out of a qualified mare and
from a Kentucky sire, and who receives earnings from a claiming race in Kentucky.
(20) "Qualified
mare" means a thoroughbred dam who resides in Kentucky from the time of the
first cover in Kentucky by a Kentucky sire until foaling, unless one (1) of the
exceptions in Section 5(4) of this administrative regulation is met.
(21) "Qualified
winner" means a thoroughbred horse born out of a qualified mare and from a
Kentucky sire that is declared the official winner by the stewards and is not eligible
to be claimed in that race.
(22) "Qualified
winner’s earnings" means the gross cash portion of the prize, as this portion
is determined by The Jockey Club, awarded to the qualified winner of a race that
is paid for from the association or the license holder permitted to conduct racing
in the jurisdiction.
(23) "Starter
allowance" means a race written to allow claiming horses who have improved
from their earlier form to run in a nonclaiming event.
Section 2. Timing of
Awards; Eligibility. (1) Disbursements from the KBIF shall be made after December
31, but not later than March 31, for awards earned for the preceding calendar year.
(2) For a horse foaled
prior to 2007, if the horse is eligible to be registered to receive funds under
the Kentucky Thoroughbred Development Fund, the breeder shall be eligible to receive
funds from the Kentucky Thoroughbred Breeders’ Incentive Fund, subject to registration
under Section 4(1) of this administrative regulation.
(3) For a horse foaled
during or after 2007, the requirements set forth in this administrative regulation
shall be met.
(4) The races eligible
for awards from the KBIF as provided in Sections 3 and 6 of this administration
regulation shall be those run on and after January 1, 2006.
Section 3. Awards.
(1)(a) An incentive shall be awarded to the qualified breeder of the qualified winner
of each of the Kentucky Derby and Kentucky Oaks.
(b) The incentive shall
be $50,000.
(2)(a) An incentive
shall be awarded to the top twenty (20) horses with the most claiming wins in Kentucky
each year.
(b) Horses earning
awards at a Kentucky race track through any component other than the claiming component
during the same calendar year shall not be eligible for the Kentucky claiming component.
(c) An incentive of
$200,000 shall be distributed to the top twenty (20) qualified Kentucky claiming
horses with the most wins, as follows:
1. $20,000 to the horse
with the most wins;
2. $17,500 to the horse
with the second most wins;
3. $15,000 to the horse
with the third most wins;
4. $12,500 to the horse
with the fourth most wins;
5. $12,000 to the horse
with the fifth most wins;
6. $11,500 to the horse
with the sixth most wins;
7. $11,000 to the horse
with the seventh most wins;
8. $10,500 to the horse
with the eighth most wins;
9. $10,000 to the horse
with the ninth most wins;
10. $9,500 to the horse
with the tenth most wins;
11. $9,000 to the horse
with the eleventh most wins;
12. $8,500 to the horse
with the twelfth most wins;
13. $8,000 to the horse
with the thirteenth most wins;
14. $7,500 to the horse
with the fourteenth most wins;
15. $7,000 to the horse
with the fifteenth most wins;
16. $6,500 to the horse
with the sixteenth most wins;
17. $6,000 to the horse
with the seventeenth most wins;
18. $6,000 to the horse
with the eighteenth most wins;
19. $6,000 to the horse
with the nineteenth most wins; and
20. $6,000 to the horse
with the twentieth most wins.
(d) Claiming earnings
earned at a Kentucky race track from the same calendar year shall be used to settle
any ties.
(e) If two (2) or more
horses have the same number of wins and the same total earnings, all incentive totals
to which those horses would have been entitled shall be divided equally between
or among them.
(3)(a) For those KBIF
registered horses foaled in 2007 or after, an incentive shall be awarded to the
qualified breeder of the qualified winner of each maiden special weight and allowance
race held in the United States, but outside Kentucky, or at Woodbine Racetrack in
Ontario, Canada.
(b) The incentive shall
be that amount which is equal to ten (10) percent of the qualified winner’s earnings
except it shall not exceed $3,000.
(4)(a) An incentive
shall be awarded to the qualified breeder of the qualified winner of each maiden
special weight and allowance race held in Kentucky.
(b) The incentive shall
be that amount which is equal to ten (10) percent of the qualified winner’s earnings
except it shall not exceed $3,000.
(5)(a) For those KBIF
registered horses foaled in 2007 or after, an incentive shall be awarded to the
qualified breeder of the qualified winner of each non-graded stakes race held in
the United States, but outside Kentucky, or at Woodbine Racetrack in Ontario, Canada.
(b) The incentive shall
be that amount which is equal to ten (10) percent of the qualified winner’s earnings
except it shall not exceed $4,000.
(6)(a) An incentive
shall be awarded to the qualified breeder of the qualified winner of each non-graded
stakes race held in Kentucky.
(b) The incentive shall
be that amount which is equal to ten (10) percent of the qualified winner’s earnings
except it shall not exceed $4,000.
(7)(a) An incentive
shall be awarded to the qualified breeder of the qualified winner of each:
1. Grade I stakes race
held in the United States;
2. Group 1 race held
in Canada, England, France, and Ireland; and
3. Group I race held
on Dubai World Cup day, Japan Cup day, and Hong Kong International day.
(b) The incentive shall
be $7,500.
(8)(a) An incentive
shall be awarded to the qualified breeder of the qualified winner of each:
1. Grade II and Grade
III stakes race held in the United States; and
2. Group 2 and Group
3 race held in Canada, England, France, and Ireland.
(b) The incentive shall
be $5,000.
(9) An incentive shall
not be awarded to the winner of any Breeders’ Cup World Championship race.
Section 4. Registration
of Foals. (1)(a) For a horse foaled on or before December 31, 2006 and eligible
to be registered under Section 2(2) of this administrative regulation, the intended
breeder of record shall file a Kentucky Thoroughbred Breeders’ Incentive Fund Application
for Award with the commission.
(b) The Kentucky Thoroughbred
Breeders’ Incentive Fund Application for Award shall be filed no later than December
31 of the year following the year in which the horse has raced in a race that would
qualify the horse for an incentive from the KBIF.
(c) A filing fee of
thirty (30) dollars shall be deducted from the award amount.
(d) The filing fee
shall be assessed one (1) time per horse.
(2) For a horse foaled
on or after January 1, 2007, the intended breeder of record shall register the unborn
foal with the commission on or prior to August 15 of the cover year by filing the
Kentucky Thoroughbred Breeders’ Incentive Fund Application for Mare Registration
and paying a filing fee of sixty (60) dollars, except as provided in subsection
(5) of this section.
(3)(a) The commission
shall be recognized and designated as the sole official registrar of the KBIF for
the purposes of registering Kentucky thoroughbred foals in accordance with this
administrative regulation.
(b) The records of
The Jockey Club shall be used as the official records of the commission for determining
the following information:
1. The identity of
the qualified breeder;
2. The claiming wins
and earnings for each race pursuant to which an award shall be granted under this
administrative regulation;
3. The qualified winners’
earnings for each race pursuant to which an award shall be granted under this administrative
regulation;
4. The name of the
qualified winner for each race pursuant to which an award shall be granted under
this administrative regulation;
5. The name of each
horse determined to be a qualified Kentucky claiming horse for purposes of calculating
the awards under Section 3(2) of this administrative regulation;
6. The registration
number or special identification number of the KBIF registered horse;
7. The name of the
KBIF registered horse; and
8. Other information
for purposes of administering the KBIF.
(4) If the information
on a form required under this section is found to be incorrect or becomes incorrect
or changes, the person considered to be the intended breeder of record shall promptly
file an amended form with the commission to correct the information.
(5)(a) A late filing
may be made if the intended breeder of record can prove that the foal otherwise
met the eligibility requirements to be a KBIF registered horse. The filing shall
be made on the form Kentucky Thoroughbred Breeders’ Incentive Fund Application for
Late Mare Registration.
(b) The amount of the
filing fee shall be as follows:
1. For a filing made
after August 15 of the cover year and on or prior to December 31 of the cover year,
the filing fee shall be $150;
2. For a filing made
between January 1 and December 31 of the weanling year, the filing fee shall be
$750; and
3. For a filing made
between January 1 and December 31 of the yearling year, the filing fee shall be
$1,500.
(6)(a) A special filing
may be made if a pregnant mare is purchased at public auction outside of Kentucky
and:
1. The mare resided
in Kentucky from the time of the first cover in Kentucky by a Kentucky sire to the
time of foaling;
2. The mare returned
to Kentucky within fourteen (14) days after the conclusion of the auction; and
3. The foal meets all
of the other eligibility requirements to be a KBIF registered horse.
(b) The filing shall
be made on the form Kentucky Thoroughbred Breeders’ Incentive Fund Application for
Special Filing of Mare Registration.
(c) The amount of the
filing shall be as follows:
1. For a filing made
between January 1 and December 31 of the cover year, the filing fee shall be $300;
2. For a filing made
between January 1 and December 31 of the weanling year, the filing fee shall be
$1,500; and
3. For a filing made
between January 1 and December 31 of the yearling year, the filing fee shall be
$3,000.
(7) If ownership of
a mare is transferred, a Kentucky Thoroughbred Breeders’ Incentive Fund Mare Transfer
Form shall be filed with the commission.
(8) If any registration
or nomination deadline imposed by this administrative regulation falls on a weekend
or holiday, the deadline shall be moved to the next business day following the original
deadline.
Section 5. Qualification
of Foal And Qualified Mare. (1) The commission may inspect the location where the
mare proposed to be a qualified mare is boarded to determine that the residency
requirement is met. The commission may also request, obtain, and inspect records
relating to the location of the mare proposed to be a qualified mare to determine
that the residency requirement is met.
(2) The person claiming
to be the qualified breeder shall bear the burden of proof to show that a mare is
a qualified mare.
(3) A failure to comply
with a term, condition, or requirement of this administrative regulation shall not
result in the loss of the registration of the foal, if the person claiming the foal
should be registered proves to the satisfaction of the commission:
(a) The failure to
comply was insignificant with respect to the registration requirements as a whole;
and
(b) A good faith and
reasonable attempt was made to comply with all applicable terms, conditions, and
requirements of this administrative regulation.
(4) In order for the
thoroughbred dam to be a qualified mare as defined in Section 1(20) of this administrative
regulation, the thoroughbred dam shall have resided in Kentucky from the time of
the first cover in Kentucky by a Kentucky sire until foaling, unless one (1) of
the following exceptions is met:
(a) Medical procedure.
1. A medical procedure
is required to be performed to protect the health of the mare or the unborn foal
that involves an extraordinary medical situation and the breeder desires to have
an expert located outside of Kentucky conduct the procedure;
2. The owner or the
lessee of the mare files a Kentucky Thoroughbred Breeders’ Incentive Fund Application
to Move Mare Outside of Kentucky no later than fourteen (14) days after the mare
leaves Kentucky and provides information relating to the procedure as requested
by the commission;
3. The executive director
of the commission approves the departure of the mare from Kentucky based on the
criteria established in paragraph (a) of this subsection;
4. The mare remains
under the care of a veterinarian during the entire period of time she is not residing
in Kentucky other than the time during which she is traveling to and from Kentucky;
5. The mare is in Kentucky
for foaling; and
6. The owner or lessee
of the mare provides documentation to establish to the satisfaction of the commission
that the mare was in Kentucky for foaling;
(b) Training.
1. The mare has not
yet delivered her first foal and is in active training outside of Kentucky;
2. The owner or the
lessee of the mare files a Kentucky Thoroughbred Breeders’ Incentive Fund Application
to Move Mare Outside of Kentucky at least fourteen (14) days before the mare leaves
Kentucky and provides information relating to the training outside of Kentucky as
requested by the commission;
3. The executive director
of the commission approves the departure of the mare from Kentucky based on the
criteria established in paragraph (b) of this subsection;
4. The mare is in Kentucky
for foaling; and
5. The owner or lessee
of the mare provides documentation to establish to the satisfaction of the commission
that the mare was in Kentucky for foaling; or
(c) Public auction.
1. The owner of the
mare desires to enter her for sale at a public auction held outside of Kentucky;
2. The owner of the
mare files with the commission a Kentucky Thoroughbred Breeders’ Incentive Fund
Application to Move Mare Outside of Kentucky at least fourteen (14) days before
the mare leaves Kentucky and provides information relating to the auction as requested
by the commission;
3. The executive director
of the commission approves the departure of the mare from Kentucky based on the
criteria established in paragraph (c) of this subsection;
4. The mare returns
to Kentucky within fourteen (14) days after the conclusion of the auction;
5. The mare is in Kentucky
for foaling; and
6. The owner or lessee
of the mare provides documentation to establish to the satisfaction of the commission
that the mare was in Kentucky for foaling.
(5) The executive director
shall notify the commission if an exception is made to the residency requirement
pursuant to subsection (4) of this section.
(6) A qualified breeder
of a qualified mare shall be responsible for:
(a) The registration
and records of the KBIF registered horse; and
(b) Complying with
the requirements of the Kentucky Thoroughbred Breeders’ Incentive Fund.
(7) The owner or lessee
of the mare may withdraw the mare’s foal from the KBIF by filing a Kentucky Thoroughbred
Breeders’ Incentive Fund Notice of Withdrawal of Foal.
Section 6. Bonus Calculation.
(1) Funds available in the KBIF state account resulting from the cover year relating
to each year preceding the granting of the actual awards shall be apportioned according
to Sections 3 and 6 of this administrative regulation.
(2) The funds apportioned
to each qualified breeder shall be awarded by determining the amount a qualified
breeder is eligible to receive based on Sections 3 and 6 of this administrative
regulation.
(3) If, at the close
of any calendar year, inadequate funding is available in the KBIF to fund the awards
provided for in Section 3 of this administrative regulation, the funding shall be
decreased proportionally among all awards, excluding the Kentucky claiming award,
the Kentucky Oaks award, and the Kentucky Derby award, until funding is adequate
to fund all awards.
(4)(a) If, at the close
of a calendar year, the amount available for awards is in excess of the amount necessary
to fund the awards provided in Section 3 of this administrative regulation, after
payment of operating expenses, a reserve fund shall be established in the KBIF in
an amount which is no more than five (5) percent of the amount of funding available
from tax receipts for that calendar year.
(b) Moneys in the reserve
account may be used as needed to provide funding of awards in a subsequent calendar
year if the amount available at the close of the last calendar year is insufficient
to fund the awards provided in Section 3 of this administrative regulation.
(c) Additional money
shall not be added to the reserve fund if it contains at least $5,000,000 when the
excess funding is available.
(5) If, at the close
of a calendar year, the amount available for awards is in excess of the amount necessary
to fund the awards provided in Section 3 of this administrative regulation and an
amount has been designated for the reserve fund provided for in subsection (4)(a)
of this section, then the awards shall be increased proportionally among all awards
except the Kentucky claiming award, the Kentucky Oaks award, and the Kentucky Derby
award.
Section 7. Application
Requirements. (1) The amount due for awards shall be calculated after the end of
each calendar year. The recipient of an award shall be notified of the amount of
the award to which the recipient may be entitled according to the last known address
on file with the KBIF.
(2)(a) After receipt
of notification of an award, each potential recipient shall return an application
for the award that certifies that the applicant is entitled to the award and certifies
the applicant’s United States taxpayer ID number or Social Security number.
(b) The application
shall be on the form Kentucky Thoroughbred Breeders’ Incentive Fund Application
for Award.
(c) A breeder may appoint
an authorized agent to complete the Kentucky Thoroughbred Breeders’ Incentive Fund
Application for Award by completing and filing with the commission a Kentucky Thoroughbred
Breeders’ Incentive Fund Authorized Agent Form.
(3)(a) Awards due recipients
who cannot be located by December 31 of the year after the year in which the qualified
winner or qualified Kentucky claiming horse became eligible to receive an incentive
under Section 3 of this administrative regulation shall lapse to the KBIF for distribution
or building the reserve in the following year.
(b) Failure to return
the application required by subsection (2) of this section by December 31 of the
year after the year in which the qualified winner or qualified Kentucky claiming
horse became eligible to receive an incentive under Section 3 of this administrative
regulation, shall result in forfeiture of the award and the award money shall lapse
to the KBIF for distribution or building the reserve in the following year.
Section 8. Disputes.
(1) Any person claiming to be aggrieved by a decision of the commission arising
under this administrative regulation shall file a complaint with the executive director
within thirty (30) days of the decision.
(2) An appeal of the
decision of the executive director pursuant to subsection (1) of this section shall
be filed with the commission within ten (10) days of mailing of the decision and
shall be conducted pursuant to KRS Chapter 13B.
Section 9. Disciplinary
Procedures. (1) The commission may deny or revoke the qualified winner’s earnings
or registration of a foal or horse, and bar a person from participation in the fund
for a period of one (1) to five (5) years based on the seriousness of the violation
if the qualified winner, qualified breeder, or an applicant for qualified breeder
status:
(a) Provides the commission
with incorrect, false, or misleading information concerning a foal or horse and
fails within thirty (30) days to provide accurate information upon request by the
commission;
(b) Fails to furnish
within thirty (30) days information the commission has requested relating to the
registration of a foal or horse;
(c) Is charged or convicted
of a crime, offense, or other criminal or civil violation involving cruelty, mistreatment,
abuse, or neglect of a horse. A person charged, but not convicted of a crime, offense,
or other criminal or civil violation as provided in this subsection may petition
the commission for reinstatement. The commission shall reinstate the earnings, registration,
or application upon submission of proof satisfactory to the commission that the
charges were dismissed and the facts forming the basis of the charges were false;
(d) Engages in conduct
that is against the best interest of breeding or horse racing; or
(e) Violates this administrative
regulation in any other manner.
(2) A second or subsequent
violation of this administrative regulation may result in a lifetime bar of the
applicant or qualified breeder from being eligible to receive an incentive from
the KBIF.
(3) The commission
shall notify the applicant or qualified breeder in writing of the action taken by
the commission.
(4) A decision imposed
pursuant to this section may be appealed pursuant to KRS Chapter 13B. The appeal
shall be filed with the commission within ten (10) days of receipt of the decision.
Section 10. The commission
may establish an advisory committee to assist the commission in the administration
of the KBIF. If established, the advisory committee shall consist of five (5) members
appointed by the chairman of the commission by July 1 of each year. Each member
of the advisory committee shall serve from July 1 through June 30 of the following
year. Each member of the advisory committee shall be a resident of Kentucky. The
advisory committee shall select a chairman from its membership annually.
Section 11. Incorporation
by Reference. (1) The following material is incorporated by reference:
(a) "Kentucky
Thoroughbred Breeders’ Incentive Fund Application for Mare Registration", KHRC
Form 70-1, 6/15;
(b) "Kentucky
Thoroughbred Breeders’ Incentive Fund Mare Transfer Form", KHRC Form 70-2,
6/15;
(c) “Kentucky Thoroughbred
Breeders’ Incentive Fund Authorized Agent Form", KHRC Form 70-3, 6/15;
(d) "Kentucky
Thoroughbred Breeders’ Incentive Fund Application to Move Mare Outside of Kentucky",
KHRC Form 70-4, 6/15;
(e) "Kentucky
Thoroughbred Breeders’ Incentive Fund Notice of Withdrawal of Foal", KHRC Form
70-5, 6/15;
(f) "Kentucky
Thoroughbred Breeders’ Incentive Fund Application for Late Mare Registration",
KHRC Form 70-6, 6/15;
(g) "Kentucky
Thoroughbred Breeders’ Incentive Fund Application for Award", KHRC Form 70-7,
6/15; and
(h) "Kentucky
Thoroughbred Breeders’ Incentive Fund Application for Special Filing of Mare Registration",
KHRC Form 70-8, 6/15.
(2) This material may
be inspected, copied, or obtained, subject to applicable copyright law, from the
Kentucky Horse Racing Commission, 4063 Iron Works Parkway, Building B, Lexington,
Kentucky 40511, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available
on the KHRC Web site at http://khrc.ky.gov.
(32 Ky.R. 1501; 2030;
2269; eff. 7-7-2006; 38 Ky.R. 155; 769; eff. 11-4-2011; 42 Ky.R. 534; 1187;
11-6-2015.)
