WSR 07-09-077

PROPOSED RULES

HORSE RACING COMMISSION


[ Filed April 17, 2007, 2:23 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 06-12-065.

Title of Rule and Other Identifying Information: Chapter 260-16 WAC, ((Special types of races)) Washington-bred horses.

Hearing Location(s): Auburn City Council Chambers, 25 West Main, Auburn, WA 98001, on June 14, 2007, at 9:30 a.m.

Date of Intended Adoption: June 14, 2007.

Submit Written Comments to: Robert J. Lopez, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, e-mail rlopez@whrc.state.wa.us, fax (360) 459-6461, by June 11, 2007.

Assistance for Persons with Disabilities: Contact Patty Sorby by June 11, 2007, TTY (360) 459-6462.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of the proposal is to make sweeping changes to chapter 260-16 WAC including (1) changing the name of the chapter, (2) amending three sections to (a) require racing associations to offer at least one Washington-bred only race per race day (to encourage the breeding of horses) WAC 260-16-040; (b) identify the requirements to be a Washington-bred horse WAC 260-16-050; and (c) identify and calculate the payment of both the Washington-bred owner's bonus and breeder's awards WAC 260-16-065, (3) adding a new section making it clear that nonprofit racing association are exempt from collecting and distributing owner's bonus and breeder's awards, and (4) repealing seven sections, including WAC 260-16-010, 260-16-020, 260-16-030, 260-16-060, 260-16-070, 260-16-080, and 260-16-090.

This proposal is intended to help encourage the horse breeding industry in the state of Washington, clearly identify the certification process of Washington-bred horses, and ensure owners and breeders receive their rightful amount in owner's bonus and breeder's awards, and final [finally] eliminate sections that are no longer necessary. This effort is part of the agency's regulatory reform effort.

Statutory Authority for Adoption: RCW 67.16.020.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Washington horse racing commission, governmental.

Name of Agency Personnel Responsible for Drafting: Robert J. Lopez, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, (360) 459-6462; Implementation and Enforcement: Robert M. Leichner, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, (360) 459-6462.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Not applicable.

A cost-benefit analysis is not required under RCW 34.05.328. Not applicable.

April 17, 2007

R. J. Lopez

Deputy Secretary

OTS-9642.2

Chapter 260-16 WAC

((SPECIAL TYPES OF RACES)) WASHINGTON-BRED HORSES


AMENDATORY SECTION(Amending Resolution No. 86-04, filed 10/16/86)

WAC 260-16-040   Washington-bred horses.   ((For the purpose of encouraging the breeding within this state, of valuable thoroughbred race horses, at least one race of each day's meeting shall consist exclusively of Washington-bred horses. If sufficient competition cannot be had among such class of horses, said race may be eliminated for said day and a substitute race, also for Washington-bred horses, provided instead. (Section 8, chapter 55, Laws of 1933.)

Proof that horses entered in such races were bred in Washington rests with the owner. Certificate of registration or the evidence of a breeder or other responsible person will be accepted. Affidavits may be demanded at the discretion of the stewards.

Eligibility for the owners bonus and the breeder awards under RCW 67.16.075, 67.16.102, and 67.16.175 are provided for in WAC 260-16-060.)) (1) To encourage the breeding of horses in the state of Washington the association will offer at least one Washington-bred only race per race day at Class A, B, and C race meets. If insufficient horses are entered in a Washington-bred only race for a particular race day a substitute race for Washington-bred only horses may be used. If either of these races have insufficient entries, the association may use an extra Washington-bred only race. If the association is unable to obtain sufficient entries to fill the extra Washington-bred only race, the race may be canceled with permission of the stewards.

(2) Only horses certified as Washington-bred, are eligible to run in a Washington-bred only race.

(3) Within ninety days after the end of the race meet, Class A, B, and C racing associations will report to the commission on the association's efforts to offer and fill at least one Washington-bred only race per day.

[Statutory Authority: RCW 67.16.020, 67.16.040 and 67.16.075. 86-21-081 (Resolution No. 86-04), 260-16-040, filed 10/16/86; Rules of racing, 320, filed 4/21/61.]


AMENDATORY SECTION(Amending Resolution No. 86-04, filed 10/16/86)

WAC 260-16-050   Certification of Washington-bred horses.   (1) For purposes of the distribution of the owner's bonus and breeder's awards, a Washington-bred horse is one that meets the following requirements:

(a) The horse was foaled within the boundaries of the state of Washington; and

(b) ((It)) The horse is ((officially certified by the associations designated by the racing commission)) certified as Washington-bred for its breed by the respective organization listed in subsection (2) of this section.

(2) The following associations ((presently comprised of a majority of owners and/or breeders of their respective breeds in the state of Washington)) are recognized by the ((racing)) commission for the purpose of certification of their respective breed as Washington-bred horses ((for the distribution of the owners bonus and breeder awards provided for in RCW 67.16.075 and 67.16.102)):

(a) The ((Washington Thoroughbred Breeders Association,)) Jockey Club for thoroughbreds;

(b) ((The Washington State Standardbred Association, for standardbred harness horses;

(c))) The ((Northern Racing)) American Quarter Horse Association, for quarter horses;

(((d))) (c) The ((Washington State)) Appaloosa ((Racing Association)) Horse Club, for appaloosas;

(((e))) (d) The ((Washington State)) Arabian Horse ((Racing)) Association, for Arabian horses; and

(((f))) (e) The ((Washington State)) American Paint Horse Association, for paint horses.

(((3) The racing commission may determine that other organizations should participate in the certification process if the organization is one that represents a majority of the owners and/or the breeders and, it is deemed to be in the best interests of racing. For other breeds specified in the racing act, organizations may present to the racing commission documentation that they represent a majority of the owners and/or the breeders.))

[Statutory Authority: RCW 67.16.020, 67.16.040 and 67.16.075. 86-21-081 (Resolution No. 86-04), 260-16-050, filed 10/16/86.]


AMENDATORY SECTION(Amending WSR 04-05-091, filed 2/18/04, effective 3/20/04)

WAC 260-16-065   Washington-bred owner's bonus and breeder's award distribution formula.   ((The one percent Washington bred owners bonus funds shall be collected and distributed as required in RCW 67.16.102.)) (1) The one percent Washington-bred owner's bonus funds collected from each ((licensee shall)) racing association must be paid in accordance with RCW 67.16.102 by the commission at the end of the race meet to the licensed owners of Washington-bred horses finishing first, second, third and fourth in the ((licensee's)) racing association's race meet. The formula for the equitable distribution of the one percent Washington-bred owner's bonus funds ((shall)) will be as follows:

(((1))) (a) Calculate the payment factor by dividing the total ((one percent)) Washington-bred owner's bonus funds collected at the race meet by the total amount of winnings (earnings) of the Washington-bred horses finishing first, second, third, and fourth in the race meet.

(((2))) (b) Multiply the winnings (earnings) of each Washington-bred owner by the payment factor to determine the amount of the ((one percent)) Washington-bred owner's bonus to be paid to the owner.

(2) The Washington-bred breeder's award funds must be collected by the Class A or B racing association as required in RCW 67.16.175, and will be distributed by the commission. The award funds must be paid to the breeder of record of Washington-bred horses finishing first, second, and third in the racing association's race meet. The formula for the distribution of the breeder's awards at each Class A or B racing association will be as follows:

(a) Seventy-five percent of the breeder's award funds will be allocated to those Washington-bred horses finishing first. To calculate the payment factor for first place Washington-bred horses, divide the total Washington-bred breeder award fund allocated to first place finishers at the race meet by the total amount of winnings (earnings) of the Washington-bred horses finishing first at the race meet. Multiply the winnings (earnings) of each Washington-bred breeder by the payment factor to determine the amount of the Washington-bred breeder's award to be paid to the breeder of record.

(b) Fifteen percent of the breeder's award funds will be allocated to those Washington-bred horses finishing second. To calculate the payment factor for second place Washington-bred horses, divide the total Washington-bred breeder award fund allocated to second place finishers at the race meet by the total amount of winnings (earnings) of the Washington-bred horses finishing second at the race meet. Multiply the winnings (earnings) of each Washington-bred breeder by the payment factor to determine the amount of the Washington-bred breeder's award to be paid to the breeder of record.

(c) Ten percent of the breeder's award funds will be allocated to those Washington-bred horses finishing third. To calculate the payment factor for third place Washington-bred horses, divide the total Washington-bred breeder award fund allocated to third place finishers at the race meet by the total amount of winnings (earnings) of the Washington-bred horses finishing third at the race meet. Multiply the winnings (earnings) of each Washington-bred breeder by the payment factor to determine the amount of the Washington-bred breeder's award to be paid to the breeder of record.

(d) The racing association is not required to include any interest or other financial benefit earned during the collection of the breeder's award.

(3) Owner's bonus and breeder's awards must be distributed within ninety days after the end of the race meet at which they were generated. Any owner's bonus or breeder's award that cannot be delivered to the rightful recipient within the time frames in chapter 63.29 RCW will be forwarded to the department of revenue as unclaimed property as required in chapter 63.29 RCW.

[Statutory Authority: RCW 67.16.020 and 67.16.102. 04-05-091, 260-16-065, filed 2/18/04, effective 3/20/04.]


NEW SECTION
WAC 260-16-075   Nonprofit race meets exempt from the requirement to collect and distribute owner's bonus and breeder's awards.   Nonprofit race meets, as defined in RCW 67.16.105(1) and 67.16.130(1) are exempt from the requirements to collect and distribute owner's bonus and breeder's awards as outlined in this chapter.

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REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 260-16-010 Harness racing.
WAC 260-16-020 Quarter horse racing.
WAC 260-16-030 Produce races.
WAC 260-16-060 Certification of Washington-bred horses -- Thoroughbreds.
WAC 260-16-070 Racing commission funds.
WAC 260-16-080 Certification of Washington-bred horses -- Standardbreds.
WAC 260-16-090 Arabian horses -- Certification.

Washington State Code Reviser's Office