810 KAR 1:070. Kentucky thoroughbred breeders’ incentive fund

Link to law: http://www.lrc.ky.gov/kar/810/001/070.htm
Published: 2015

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      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.)