Race Horse Development Fund: Distributions; Escrow Accounts

(1) If the commission determines pursuant to 205 CMR 149.03(2)(a) that monies due to a harness racing association or horse racing association from the race horse development fund should be placed in an escrow account the commission shall request authorization from the Office of the Treasurer and Receiver General in accordance with M.G.L. c. 29, §§ 23 and 34. (2) If the commission receives authorization from the Office of the Treasurer and Receiver General, the commission shall establish a race horse development fund escrow account to hold such funds and any interest thereon for distribution in accordance with M.G.L. c. 23K, § 60(c), the recommendations of the horse racing committee, and 205 CMR 149.00. (3) The commission shall establish a separate race horse development fund escrow account concerning each harness racing association or horse racing association for which it determines such an account is necessary pursuant to 205 CMR 149.03(2)(a) (4) The commission shall hold funds in such race horse development fund escrow accounts subject to the following requirements: Monies held in a race horse development fund escrow account shall be held in escrow for no more than three years from the date of the Commission's determination to hold the funds in escrow. After three years, any monies remaining in such race horse development fund escrow accounts shall be transferred or distributed by the commission in accordance with the recommendations of the horse racing committee. 149.04: continued (5) (a) The commission shall make distributions from the race horse development fund, or from a race horse development fund escrow account created under 205 CMR 149.03, in the distribution percentage(s) approved by the commission upon a recommendation of the horse racing committee between thoroughbred and standardbred racing as follows, in accordance with M.G.L. c. 23K, § 60, and 205 CMR 149.00: 1. 80% of the funds approved by the commission shall be paid weekly into separate, interest bearing purse accounts in accordance with M.G.L. c. 23K, § 60(c)(i). If there is more than one racing association within a particular breed, the funds allocated to that breed shall be divided between the associations at the discretion of the commission. The earned interest on those accounts shall be credited to the respective purse accounts and shall be combined with revenues from existing purse agreements to fund purses for live races consistent with those agreements, with the advice and consent of the applicable horsemen. 2. 16% of the funds approved by the commission shall be deposited by the Commission in accordance with M.G.L. c. 23K, § 60(c)(ii) for the benefit of the respective breeding programs authorized by the commission. 3. 4% of the funds approved by the commission shall be used to fund health and pension benefits for the members of the horsemen's organizations representing the owners and trainers at a horse racing facility for the benefit of the organization's members, their families, employees and others under the rules and eligibility requirements of the organization, as approved by the commission in accordance with M.G.L. c. 23K, § 60(c)(iii), provided, however, that if there is more than one horsemen's organization within a particular breed, the funds allocated to that breed shall be divided at the discretion of the commission. This amount shall be deposited by the Commission within five business days of the end of each month into a separate account to be established by each respective horsemen's organization at a banking institution of its choice. Of this amount, the commission shall determine how much shall be paid annually by the horsemen's organization to the thoroughbred jockeys or standardbred drivers' organization at the horse racing facility for health insurance, life and/or accident insurance or other benefits to active and disabled thoroughbred jockeys or standardbred drivers under the rules and eligibility requirements of that organization. (b) The commission may distribute less than the entire amount of the funds in 205 CMR 149.04(5)(a)1. if the commission determines in its sole discretion that such distribution shall be beneficial or if a lesser amount is requested by the harness racing association or the horse racing association. Funds under 205 CMR 149.04(5)(a)1. that remain after payment by the commission under 205 CMR 149.04 shall remain in the race horse development fund and shall be available for payment in future years in the commission's discretion, after applying the distribution percentage recommendation of the horse racing committee. (6) If the commission awards a license to a harness racing association after placing the funds in escrow pursuant to 205 CMR 149.03, the commission may transfer funds to that harness racing association, for use in accordance with M.G.L. c. 23K, § 60, and 205 CMR 149.00, from any race horse development fund escrow account then in existence that was created under 205 CMR 149.03. (7) If the commission awards a license to a horse racing association after placing the funds in escrow pursuant to 205 CMR 149.03, the commission may transfer funds to that horse racing association, for use in accordance with M.G.L. c. 23K, § 60, and 205 CMR 149.00, from any race horse development fund escrow account then in existence that was created under 205 CMR (8) The commission may, upon the recommendation of the horse racing committee, transfer all or a portion of the funds held in a race horse development fund escrow account to any one or more harness racing associations or horse racing associations for distribution in accordance with M.G.L. c. 23K, § 60, and 205 CMR 149.00.