Section 720.56 - Pennsylvania Breeding Fund(a)Establishment.--There is hereby created a restricted account in the State Racing Fund to be known as the Pennsylvania Breeding Fund which shall consist of the money deposited under section 2834-D and any provision of 4 Pa.C.S. Pt. II (relating to gaming) and which shall be distributed by the commission.(b)Awards from the Pennsylvania Breeding Fund.--The commission shall distribute money from the Pennsylvania Breeding Fund as follows:(1) An award of 30% of the purse earned by every registered thoroughbred racing horse sired in this Commonwealth by a registered Pennsylvania sire at the time of conception of the registered thoroughbred racing horse sired in this Commonwealth, or an award of 20% of the purse earned by every registered thoroughbred racing horse sired in this Commonwealth sired by a nonregistered sire, which finishes first, second or third in any race conducted by a licensed racing entity under this article shall be paid to the breeder of said registered thoroughbred racing horse sired in this Commonwealth. A single award under this paragraph may not exceed 1% of the total annual fund money.(2) An award of 10% of the purse earned by any registered thoroughbred racing horse sired in thisCommonwealth which finishes first, second or third in any race conducted by a licensed racing entity under this article shall be paid to the owner of the registered Pennsylvania sire which regularly stood in Pennsylvania at the time of conception of the thoroughbred racing horse sired in this Commonwealth. A single award under this paragraph may not exceed 0.5% of the total annual fund money.(3) An award of 10% of the purse earned by any registered thoroughbred racing horse sired in this Commonwealth which finishes first in any race conducted by a licensed racing entity under this article not restricting entry to registered thoroughbreds racing horse sired in this Commonwealth shall be paid to the licensed owner of said registered thoroughbred horse sired in this Commonwealth at the time of winning. A single award under this paragraph may not exceed 0.5% of the total annual fund money.(c)Purses from Pennsylvania Breeding Fund.--Up to one-fifth of the total of the estimated Pennsylvania Breeding Fund money remaining each year after the deduction of expenses related to the administration and development of the Pennsylvania Breeding Fund program and the payment of breeder, stallion and owner awards, shall be divided among the licensed racing entities that conduct thoroughbred horse race meetings in direct proportion to the rate by which each licensed racing entity generated the fund money during the previous year to be used solely for purses for Pennsylvania Breeding Fund stakes races which restrict entry to registered thoroughbred racing horse sired in this Commonwealth.(d)Remaining funds.--The Pennsylvania Breeding Fund money remaining following disbursements as directed in subsection (b) (1), (2) and (3) and subsection (c) shall be divided among the licensed racing entities that conduct thoroughbred horse race meetings in direct proportion to the rate by which each licensed racing entity generated the fund money during the previous year to be used for purses as follows: (1) Claiming and nonclaiming Pennsylvania Breeding Fund races which restrict entry to registered thoroughbred racing horses sired in this Commonwealth.(2) Claiming and nonclaiming Pennsylvania Breeding Fund races which prefer registered thoroughbred racing horses sired in this Commonwealth as starters. In these races, should eight or more registered thoroughbred racing horses sired in this Commonwealth pass the entry box, the race shall be considered closed to horses other than registered thoroughbred racing horses sired in this Commonwealth.(e)Funds not expended.--Pennsylvania Breeding Fund money due to licensed racing entities, as outlined in subsections (c) and (d), but not expended during the calendar year may be carried forth in the fund on the accounts of the licensed racing entities to be expended during the succeeding year in addition to the racing entities' fund money annually due to them for purses.(e.1)Committee.--There is hereby established the Pennsylvania Breeding Fund Advisory Committee within the commission. The committee shall consist of five individuals, who are residents of this Commonwealth, to be appointed by the commission by June 1 of each year based on the recommendation of the groups identified in this subsection. If a member other than a commissioner has not been recommended by June 1 of each year, the commission shall make an appointment for the organization failing to so recommend a member of the committee. The committee shall assist and advise the commission on the regulation of horse racing breeding issues under this article but shall have no power in administering the fund. Members of the advisory committee shall not receive compensation or reimbursements for participation on the committee. The committee shall consist of the following members: (1) Two members representing the Pennsylvania Horse Breeders' Association.(2) One member representing licensed racing entities.(3) One member representing the association representing horsemen racing in Pennsylvania.(4) One member of the commission.(f)Pennsylvania Horse Breeders' Association.--The commission shall contract with the Pennsylvania Horse Breeders' Association as the organization responsible for the registration and records of thoroughbred racing horses sired in this Commonwealth. The Pennsylvania Horse Breeders' Association shall advise the commission when called upon and shall determine the qualifications for thoroughbred racing horses sired in this Commonwealth and Pennsylvania sires. Registration and records of the association shall be official records of the Commonwealth and shall be subject to the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law. At the close of each calendar year, the Pennsylvania Horse Breeders' Association shall submit to the commission for its approval an itemized budget of projected expenses for the ensuing year relating to the administration and development of the Pennsylvania Breeding Fund Program. The commission shall reimburse the Pennsylvania Horse Breeders' Association for those expenses actually incurred in the administration and development of the PennsylvaniaBreeding Fund Program from the Pennsylvania Breeding Fund, no more than on a quarterly basis. Added by P.L. TBD 2016 No. 7, § 4, eff. 2/23/2016.