COMMONWEALTH OF KENTUCKY

STATE FISCAL NOTE STATEMENT

GENERAL ASSEMBLY / LEGISLATIVE RESEARCH COMMISSION
2006 REGULAR SESSION / 2006-2008 INTERIM

MEASURE

(X) 2006 BR No. / 0256 / (X) / HB / Bill No. / 32
( ) Resolution No. / ( ) Amendment No.
SUBJECT/TITLE / AN ACT relating to the equine industry program.
SPONSOR / Representative Tom Burch

NOTE SUMMARY

Fiscal Analysis: / X / Impact / No Impact / Indeterminable Impact
Level(s) of Impact: / X / State / Local / Federal
Budget Unit(s) Impact
Fund(s) Impact: / X / General / Road / Federal
Restricted Agency (Type) / (Other)

FISCAL SUMMARY

______

Fiscal Estimates / 2005-2006 / 2006-2007 / 2007-2008 / Future Annual
Rate of Change
Revenues (+/-) / 0 / ($980,000) / ($980,000)
Expenditures (+/-) / 0 / 0 / 0
Net Effect / 0 / ($980,000) / ($980,000)

______

MEASURE'S PURPOSE:

This bill increases funding for equine industry program at University of Louisville from two-tenths to three-tenths of one percent of total amount wagered on live racing in Kentucky and from one-twentieth to three-tenths of one percent of the total amount wagered on intertrack and interstate wagering. The bill also specifies that the state moneys allocated to the program shall only be used to educate students, conduct surveys of the equine industry, and conduct symposiums and seminars on issues affecting the racing industry. The bill requires that an annual symposium be held that promotes Kentucky’s preeminence in the horse industry. The University of Louisville is required to work cooperatively with representatives of key racing and breeding organizations to determine the time, agenda, and content of the symposium

PROVISION/MECHANICS:

Amends KRS 138.510 and KRS 230.550

FISCAL EXPLANATION:

The bill, if passed, will become effective approximately July 15, 2006, as the bill does not contain a specific effective date. Therefore, the increase in the rate will not affect FY 2005-2006. Assuming that the wagered amounts for FY 2006-2007 will be at least equal to the wagered amounts for FY 2004-2005, there will be a negative General Fund impact of at least $ 980,000 for FY 2006-2007.

DATA SOURCE(S) / Perry Nutt, LRC, Department of Revenue return data
NOTE NO. / 37 / PREPARER / Charlotte Quarles / REVIEW / JAM / DATE / 2/06/06

LRC 2006RS BR0256-HB32