Section 1406 - Distributions from pennsylvania race horse development trust fund(a)Distributions.--Funds from the Pennsylvania Race Horse Development Trust Fund shall be distributed to each active and operating category 1 licensee conducting live racing in the following manner: (1) An amount equal to 18% of the daily gross terminal revenue of each category 1 licensee shall be distributed to each active and operating category 1 licensee conducting live racing unless the daily assessments are affected by the daily assessment cap provided for in section 1405(c) (relating to Pennsylvania Race Horse Development Trust Fund ). In cases in which the daily assessment cap affects daily assessments, the distribution to each active and operating category 1 licensee conducting live racing for that day shall be a percentage of the total daily assessments paid into the Pennsylvania Race Horse Development Trust FUnd for that day equal to the gross terminal revenue of each active and operating category 1 licensee conducting live racing for that day divided by the total gross terminal revenue of all active and operating category 1 licensees conducting live racing for that day. The distributions to licensed racing entities from the Pennsylvania Race Horse Development Trust Fund shall be allocated as follows: (i) Eighty percent to be deposited weekly into a separate, interest-bearing purse account to be established by and for the benefit of the horsemen. The earned interest on the account shall be credited to the purse account. Licensees shall combine these funds with revenues from existing purse agreements to fund purses for live races consistent with those agreements with the advice and consent of the horsemen.(ii) From licensees that operate at thoroughbred tracks, 16% to be deposited on a monthly basis into the Pennsylvania Breeding Fund as defined in 3 Pa.C.S. § 9336 (relating to Pennsylvania Breeding Fund). From licensees that operate at standardbred tracks, 8% to be deposited on a monthly basis in the Pennsylvania Sire Stakes Fund as defined in 3 Pa.C.S. § 9337 (relating to Pennsylvania Sire Stakes Fund) and 8% to be deposited on a monthly basis into a restricted account in the state racing fund to be known as the Pennsylvania Standardbred Breeders Development Trust FUnd. The STate Horse Racing Commission shall, in consultation with the Secretary of Agriculture by rule or by regulation, adopt a standardbred breeders program that will include the administration of Pennsylvania stallion award, Pennsylvania bred award and a Pennsylvania sired and bred award.(iii) Four percent to be used to fund health and pension benefits for the members of the horsemen's organizations representing the owners and trainers at the racetrack at which the licensed racing entity operates for the benefit of the organization's members, their families, employees and others in accordance with the rules and eligibility requirements of the organization, as approved by the state horse racing commission. This amount shall be deposited 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, $250,000 shall be paid annually by the horsemen's organization to the thoroughbred jockeys or standardbred drivers organization at the racetrack at which the licensed racing entity operates for health insurance, life insurance or other benefits to active and disabled thoroughbred jockeys or standardbred drivers in accordance with the rules and eligibility requirements of that organization.(b) Guidelines.--The board shall establish guidelines that ensure that funds allocated to the horsemen's organization are used to finance the programs to benefit all horsemen of this Commonwealth and that administrative and overhead costs are reasonably related to such programs.(c) [Repealed by 2017 Amendment.](d) Reasonableness.--Funding for benevolent programs, including, but not limited to, pension, health and insurance plans, will be considered reasonable if such program funding on an annual basis is at least 85% of the total statutory allocation.(e) Filing of audit.--[Repealed by 2012 amendment.](f) Contracts.--All health and pension benefits contracts shall be reviewed and approved by the board.(g) Penalty.--Any violation of the provisions of this section may subject the horsemen's organization to a fine not to exceed $10,000 per violation.(h) Unauthorized use of funds.--If any funds from the Pennsylvania Race Horse Development Trust Fund are diverted, redirected, taken or allocated for any purpose other than the purposes authorized under this section through legislative or administrative action, the General Assembly shall within 30 days of the diversion, redirection, taking or allocation restore all funds that have been diverted, redirected, taken or allocated from the Pennsylvania Race Horse Development Fund since 2009 for any purpose other than the purposes authorized under this section.Amended by P.L. TBD 2017 No. 42, § 27.3, eff. 10/30/2017.Amended by P.L. 574 2013 No. 71, § 20, eff. 7/18/2013.Amended by P.L. 823 2012 No. 87, § 17, eff. 7/2/2012.2004, July 5, P.L. 572, No. 71, § 1, imd. effective. Amended 2006, Nov. 1, P.L. 1243, No. 135, § 9.1, imd. effective; 2010, Jan. 7, P.L. 1, No. 1, § 11.4, retroactive effective Jan. 1, 2010.