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SENATE FLOOR VERSION
April 4, 2024
AS AMENDED
ENGROSSED HOUSE
BILL NO. 3693 By: Culver of the House
and
Stephens of the Senate
An Act relating to amusements and sports; amending 3A
O.S. 2021, Section 208.3, which relates to the
Oklahoma Horse Racing Commission; prohibiting the
Commission from expending certain funds when other
funds are available; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 3A O.S. 2021 , Section 208.3, is
amended to read as follows:
Section 208.3 A. There is hereby created in the State Treasury
an agency special account for the Oklahoma Horse Racing Commission,
to be designated the "Oklahoma Breeding Development Fund Special
Account". The fund shall be a continuing fund, not subject to
fiscal year limitations, and shall consist of all monies received by
the Commission for deposit in the fund pursuant to Section 205.6 of
this title and from revenue received as breakage and from unclaime d
pari-mutuel tickets. All monies accruing to the credit of the fund
are hereby appropriated and may be budgeted and expended by the
Commission for the purposes specified in subsection B of this
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section. Expenditures from the fund shall be made upon vouc hers
prescribed by the State Treasurer and issued by the Commission
against the Oklahoma Breeding Development Fund Special Account. The
official registering agency designated by the Commission pursuant to
subsection D of this section shall verify the curr ent eligibility of
a participating horse prior to distributing any purse supplement,
stake, reward or award from the Oklahoma Breeding Development Fund
Special Account. Any person entitled to monies from the Oklahoma
Breeding Development Fund Special Acco unt as a purse supplement,
stake, reward, or award (awards), will forfeit such monies if that
person fails to comply with all requirements necessary for earning
the awards. Further, any such person will forfeit such monies if,
within one (1) year from the date of the race in which such award
was earned, that person does not submit the state voucher for
payment or for replacement in the event of an expired voucher, or if
that person fails to submit all documentation required by the
Oklahoma Horse Racing Com mission. In such event, monies accrued
from forfeiture will be returned to the Oklahoma Breeding
Development Fund Special Account for exp enditure by the Commission
for the purposes specified in subsection B of this section.
B. No monies shall be expended by the Commission from the
Oklahoma Breeding Development Fund Special Account except for any of
the following purposes:
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1. To provide purse supplements to owners of Oklahoma -bred
horses;
2. To provide stakes and rewards to be paid to the owners of
the winning Oklahoma-bred horses in certain horse races;
3. To provide stallion awards to the owner of the Oklahoma
stallion which is the sire of an Oklahoma-bred horse if such a horse
wins any race conducted at a race meeting;
4. To provide breeders awards t o the owner of the Oklahoma -
registered mare which is the dam of an Oklahoma -bred horse if such a
horse wins any race conducted at a race meeting;
5. To provide monies for equine research through state
institutions accredited for the same;
6. To provide monies for use in marketing, promoting and
advertising the Oklahoma -Bred Program and the Oklahoma horse racing
industry to the people of Ok lahoma, the United States and abroad;
7. To provide for the administration of the Oklahoma Breeding
Development Program. The Oklahoma Horse Racing Commission is hereby
authorized to utilize up to fifteen percent (15%) of the prior
year's receipts for administration. All expenses reimbursed as
administrative pursuant to this subsection shall be itemized and
audited pursuant to subsection E of this section. Any monies
transferred from the Oklahoma Breeding Development Fund Special
Account to the Oklahoma Breeding Development Revolving Fund for
administrative reimbursement found to be unsubstantiated, excessive
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or ineligible for reimbursement by the audit shall be returned to
the Oklahoma Breeding Development Fund Special Account within thirty
(30) days of the conclusion of the audit; and
8. To provide, upon the request of an official horsemen's
representative organizatio n for a breed, funding to any nonprofit
entity that is based in Oklahoma and exempt from taxation pursuant
to the provisions of the United States Internal Revenue Code, 26
U.S.C. Section 501(c), for the purpose of providing care of retired
and unwanted Oklahoma-bred racing stock of the particular breed of
horse represented by the requesting organization. Provided,
however, that no monies shall be expended by the Commission for the
purpose of this paragraph if federal funds or funds from the
Horseracing Integrity and Safety Authority are available for the
same purpose.
C. By rule the Commission shall:
1. Define the term "Oklahoma -bred horse";
2. Qualify stallions for participation in Oklahoma -bred
stallion awards;
3. Provide for the registration of Oklah oma-domiciled mares and
stallions and Oklahoma -bred horses. No such horse shall compete in
the races limited to Oklahoma -bred horses unless registered with the
Commission. The Commission may prescribe such forms as are
necessary to determine the eligibil ity of such horses; provided,
breeding stallions shall be eligible for registration in the
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Oklahoma-bred breeding program until July 1 of the breeding year.
No person shall knowingly prepare or cause preparation of an
application for registration of such foals which contains false
information;
4. Establish a schedule of fees for the registration of
Oklahoma-domiciled mares and stallions and Oklahoma -bred horses
sufficient to provide for all expenses incurred in the
administration of the Oklahoma Breeding Development Fund Special
Account;
5. Allow a mare registered as Oklahoma -bred racing stock which
has not been registered as an Oklahoma b roodmare prior to foaling to
be registered as an Oklahoma broodmare upon payment of the
registration fee and a late fe e not to exceed Two Hundred Dollars
($200.00), which action shall entitle the foals of the mare to be
registered as Oklahoma -bred horses, provided all other
qualifications of the Commission are met; and
6. Establish criteria which a nonprofit entity based in
Oklahoma must meet to be eligible to receive funds for the purpose
of caring for retired and unwanted Oklahoma -bred racing stock.
D. The Commission may contract with and designate an official
registering agency to implement the registration of horses and the
payment of awards from the Oklahoma Breeding Development Fund
Special Account. The official registering agency shall operate
under the supervision of the Commission and be subject to the rules
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and regulations of the Commission. The official regis tering agency
shall receive no compensation except fees received for registration
of horses. In the event the Commission elects to perfor m as the
official registering agency rather than contracting for such
services, the Commission shall deposit all regis tration fees from
the registration of Oklahoma -bred horses into the Oklahoma Breeding
Development Fund Special Account.
SECTION 2. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT
April 4, 2024 - DO PASS AS AMENDED