HB 503 — HORSE RACING BREEDER MERIT & INCENTIVE AWARDS

HOUSE BILL 503 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED BY Candy Spence Ezzell Pursuant to House Rule 24-1, this document incorporates amendments that have been adopted prior to consideration of this measure by the House.

It is a tool to show the amendments in context and is not to be used for the purpose of amendments.

AMENDING HOW HORSE BREEDERS ARE PAID h INCENTIVE AND MERIT AWARDS;

REQUIRING MEMBERSHIP IN THE NEW g o MEXICO HORSE BREEDERS' ASSOCIATION TO RECEIVE MERIT AND t hr g e i k INCENTIVE REWARDS;

ADDRESSING FIDUCIARY BONDS, FAILURE TO h r i s NEGOTIATE AN AWARD CHECK AND FAILURE TO PROVIDE TAX-REPORTING h , t, INFORMATION.

e9 u g e b l e e h n d d i = = o h BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

l ] b ,d i a º e SECTION 1.

Section 60-1A-24 NMSA 1978 (being Laws 2007, r i = r t e w d m a n o Chapter 39, Section 24) is amended to read:

d"60-1A-24. m :

b e d s º o t n = .213182.3 s k m e e a n e d r e l u [ A d "60-1A-24.

The money deposited with the New Mexico horse HB 503/a Page 1 breeders' association by a racetrack licensee pursuant to Subsection B of this section shall be paid weekly to the [owner h of the dam of the horse at the time that the animal was foaled u » r upon certification of the commission and the New Mexico horse t h g e l i breeders' association] breeder of record as recorded by the New h r i s Mexico horse breeders' association upon certification of the h , e h commission.

t u g e b l e e , gh D.

In addition to the money distributed pursuant to n d d i = = o h Subsection B of this section, the New Mexico horse breeders' l ] b ,d i a º r association shall distribute the money allocated to the New eMexico rhorse =breeders' tassociation epursuant wto dSubsections mB, aC nand oD Mexicoof horseSection breeders'60-1A-19 associationNMSA 1978 in the following manner and pursuant to Subsectionsrules B,adopted Cby dthe mcommission: :

b(1) rforty-five epercent tof ºthe omoney tto nthe =breeders .213182.3of srecord kas mrecorded eby -the 2New -Mexico ehorse abreeders' nassociation e d r e l u [ A d and D of Section 60-1A-19 NMSA 1978 in the followingfirst-, mannersecond- and pursuantthird-place tofinishers; rules adopted by the commission:

(1)(2) forty-fiveseven percent of the money to the [ownersowners atof the timestallions thethat winnerssired were foaled of the dams of the first-place winners]winners breedersat of record as recorded by the Newtime Mexico horse breeders' association of the first-,winners second-were andconceived; third-place finishers;

(2) seven percent of the money to the owners [at the time the winners were foaled of the studs that sired the first-place winners] of the stallions that sired the first- place winners at the time the winners were conceived;

and (4) the remaining money to be divided among h the owners of the first-, second- and third-place finishers u » r during each race meet, provided that the first-, second- and tHB h503/a gPage e2 l i third-place finishers are registered as New Mexico-bred horses h r i s with the New Mexico horse breeders' association and the owners h , e h are members of the association.

t u g e b l e e , gh HCEDCº E.

The Newcommission Mexicoshall horseestablish breeders'by associationrule nfiduciary, dsecurity dand iinsurance =safeguards =for othe hmoney shalldeposited file a fiduciary bond with theand commissionpaid inout aor face l ] b ,d i a º r amount equal to the total money distributed duringby the previousNew eMexico rhorse =breeders' tassociation e w d m a n o calendar year pursuant to Subsectionthe CHorse ofRacing thisAct. section.

TheF. d m :

b r e t º o t n = .213182.3 s k m e - 3 - e a n e d r e l u [ A d bond shall be executed by a surety company authorized to do business in New Mexico;

provided that the fiduciary bond shall be in an amount not less than [two million dollars ($2,000,000)] one million dollars ($1,000,000);

provided that if a fiduciary bond as required in this subsection is not available, the commission shall determine and require another manner for the New Mexico horse breeders' association to ensure its fiduciary responsibility.»HCEDC HCEDCºE.

The commission shall establish by rule fiduciary, security and insurance safeguards for the money deposited with and paid out or distributed by the New Mexico horse breeders' association pursuant to the Horse Racing Act.»HCEDC F.

The money h represented by the check or other negotiable instrument shall u » r t h revert to the fund created pursuant to Subsection A of this g e l i section and the recipient shall no longer be eligible for the h r i s payment.

h , e h t u g G.

A person otherwise eligible for a payment e b l e e , gh pursuant to Subsection D of this section shall not be eligible n d d i = = o h if the person does not provide within ninety days of l ] b ,d i a º r e r = eligibility for a merit and incentive award information t e w d m a n o necessary for the New Mexico horse breeders' association to dcomply mwith :state and federal tax law." HB 503/a Page 3 25

b r e t º o t n = .213182.3 s k m e - 4 - e a n e d r e l u [ A d comply with state and federal tax law." - 5 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .213182.3 s k em e e a n e d r e l u [ A d