Administrative Code

Virginia Administrative Code
11/24/2020

Chapter 130. Virginia Breeders Fund

Part I
Definitions

11VAC10-130-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Breeding season" means a period of time beginning on February 1 and ending on August 1 of each year. For Standardbreds, the breeding season means a period of time beginning February 15 and ending on July 15 of each year.

"Registered" means the completion of the process of filing an application with the commission or its designee to satisfy the requirements for participation in the Virginia Breeders Fund.

"Stallion owner" means an owner or lessee of record of a stallion that covered mares in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred horse.

"Virginia-bred Arabian horse" means a registered Arabian horse foaled in the Commonwealth of Virginia.

"Virginia Arabian horse breeder" means the owner or lessee of record of the mare at the time of foaling of a Virginia-bred Arabian horse.

"Virginia Arabian sire" means a registered Arabian stallion that covered mares only in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred Arabian horse.

"Virginia-bred Quarter Horse" means a registered Quarter Horse foaled or conceived in the Commonwealth of Virginia.

"Virginia Quarter Horse breeder" means the owner or lessee of record of the mare at the time of conception of a Virginia-bred Quarter Horse.

"Virginia Quarter Horse sire" means a registered Quarter Horse stallion or registered Virginia Thoroughbred stallion that covered mares only in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred Quarter Horse.

"Virginia resident" means a person legally required to file a resident income tax return with the Commonwealth of Virginia or a partnership, corporation, stable name or other entity that is solely owned by Virginia residents and owners legally required to file resident income tax returns with the Commonwealth.

"Virginia-bred Standardbred horse" means a registered Standardbred horse sired by a Virginia Standardbred sire, a registered Standardbred horse foaled in the Commonwealth of Virginia provided that the foal-producing mare is domiciled in the Commonwealth from July 15 through December 31 of the year in which the horse is foaled, or a registered Standardbred horse foaled in the Commonwealth provided that the foal-producing mare is bred back that same breeding season to a Virginia Standardbred sire with the following exceptions:

1. A foal of a mare that is solely owned by a Virginia resident at the time of conception; or

2. A foal of a mare purchased solely by a Virginia resident at a public auction.

"Virginia Standardbred horse breeder" means the owner or lessee of record of the mare at the time of conception of a Virginia-bred Standardbred horse.

"Virginia Standardbred sire" means a registered Standardbred stallion that stood only in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred Standardbred horse. Shipment of semen for the breeding of mares outside the Commonwealth shall be permitted so long as any resulting foals meet the requirements of this chapter in all other respects.

"Virginia-bred Thoroughbred horse" means a registered Thoroughbred horse foaled in Virginia.

"Virginia-sired Thoroughbred horse" means a registered Thoroughbred horse sired by a Virginia Thoroughbred sire, but not foaled in Virginia or not otherwise satisfying the requirements for a Virginia-bred Thoroughbred horse.

"Virginia Thoroughbred horse breeder" means the owner or lessee listed on The Jockey Club registration papers as the owner or lessee of record of the mare at the time of foaling a Virginia-bred Thoroughbred horse.

"Virginia Thoroughbred sire" means a registered Thoroughbred stallion that covers mares, other than test mares, only in the Commonwealth during the breeding season in which it sires a Virginia-bred Thoroughbred horse, or only during that part of the breeding season after entering the Commonwealth.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 1.1, eff. January 27, 1993; amended, Volume 14, Issue 07, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 04, eff. October 16, 2000; Volume 17, Issue 19, eff. May 7, 2001; Volume 18, Issue 20, eff. May 22, 2002; Volume 23, Issue 11, eff. January 10, 2007; Volume 23, Issue 18, eff. April 30, 2007; Volume 30, Issue 18, eff. May 31, 2014; Volume 33, Issue 10, eff. January 1, 2017.

Part II
General

11VAC10-130-20. Generally.

The purpose of this chapter is to establish procedures for the administration of the Virginia Breeders Fund by the Virginia Racing Commission as provided for in § 59.1-372 of the Code of Virginia.

A. Certification. The commission or its designee shall certify that a racehorse is Virginia bred for eligibility for entry into races restricted to Virginia-bred horses, and to qualify its owner, the stallion owner, if applicable, and breeder for awards.

B. Determination of eligibility. The final determination of all questions, disputes or protests relating to the registration, eligibility for certification or breeding of a Virginia-bred horse and the final determination of eligibility of any horse to enter a race restricted to Virginia-bred horses shall rest solely with the commission.

C. Documentation. In making its determination, the commission or its designee, in its discretion, may require the submission of any certificate of foal registration, eligibility paper or any other registration document, affidavits or other substantive proof to support or deny any claim concerning registration of a horse as Virginia bred.

D. False statements. Any person who submits false or misleading information to a breed registry, to the commission or its designee, or to any racing official may be fined, have his permit suspended or revoked, be denied participation in the Virginia Breeders Fund for a period of time deemed appropriate by the commission, or any or all of the foregoing.

E. Forfeiture of awards and purse moneys. Any person who is denied participation in the Virginia Breeders Fund under the provisions of this chapter shall forfeit and restore to the fund any awards and purse moneys received based upon the submission of false or misleading information. Until the awards and purse moneys are restored, the commission may suspend the person's permit to participate in horse racing at licensed facilities.

F. Recognized registries. The commission shall recognize certificates of registration from the following breed registries:

1. Thoroughbred: The Jockey Club;

2. Standardbred: The United States Trotting Association;

3. Quarter Horse: The American Quarter Horse Association; and

4. Arabian horse: The Arabian Horse Registry of America.

G. Payment of awards. All awards for owners, stallion owners and breeders shall be distributed from the Virginia Breeders Fund in a manner prescribed by the commission. The following provisions shall apply to payment of owner, stallion owner and breeder awards:

1. Determination of individual distributions to a stallion owner shall be in the same ratio as the amount of first-place purse money won by the Virginia-bred horse at the race meeting, which qualifies the stallion owner for an award, to the total amount of first-place purse money won by all Virginia-bred horses that qualify stallion owners for awards at the race meeting;

2. Determination of individual distributions to a breeder shall be in the same ratio as the amount of first-place purse money won by the Virginia-bred horse at the race meeting, which qualifies the breeder for an award, to the total amount of first-place purse money won by all Virginia-bred horses at the race meeting;

3. Determination of individual distributions to an owner shall be in the same ratio as the amount of nonsupplemented first-place purse money won by the Virginia-bred horse at the race meeting that qualifies the owner for an award to the total amount of nonsupplemented first-place purse money won by all Virginia-bred horses at the race meeting;

4. To become eligible for an owner, a stallion owner or a breeder award from the Virginia Breeders Fund, the owner, stallion owner or breeder must be certified by the commission or its designee prior to receiving any award, unless his racehorse, stallion or foal has been previously registered with the commission or its designee;

5. A stallion owner or breeder need only be certified once per racehorse; and

6. Any unclaimed awards from the Virginia Breeders Fund shall be remitted to the fund.

H. Distribution by breeds. The funds generated by the breed of horse through pari-mutuel wagering at a race meeting shall be distributed to that breed of horse through owner awards, stallion owner awards, breeder awards, purses and purse supplements.

I. Reimbursement of funds. The source of funding is 1.0% of all pari-mutuel pools, which shall be paid to the commission within five days of the date that the funds were generated. Purse moneys shall be paid from the horsemen's account when approval is granted by the stewards. The commission shall reimburse the horsemen's account to the extent that funds are available from the Virginia Breeders Fund.

J. Restrictions. In disbursing the Virginia Breeders Fund, the following restrictions shall apply:

1. Supplements to purses from the Virginia Breeders Fund shall not be considered in determining owner awards;

2. The amount of the purses for races restricted to Virginia-bred horses or any adjustments must be fair, equitable and appropriate to the quality of the horses competing for those purses;

3. Purses from the Virginia Breeders Fund shall be considered for stallion owner and breeder awards;

4. Funds allocated for purses shall be credited to the owner's account by the horsemen's bookkeeper in accordance with procedures established elsewhere in this chapter; and

5. Underpayment of moneys generated by each breed shall be remitted to the Virginia Breeders Fund.

K. Reservation of funds. The commission may set aside funds for distribution in future years if the commission, in its discretion, determines that there is an insufficient supply of Virginia-bred horses of a certain breed to warrant a distribution. In this event, the funds shall be deposited in an interest-bearing account for future distribution of awards and purse supplements to the breed that generated the funds so set aside.

L. Assignment of awards. Awards distributable to breeders and stallion owners are only assignable pursuant to a court order.

M. Advisory committee. To assist it in establishing this awards and incentive program to foster the industry of breeding racehorses in Virginia, the commission shall appoint an advisory committee composed of two members from each of the registered breed associations representing each breed of horse participating in the fund program, one member representing the owners and operators of racetracks and one member representing all the meets sanctioned by the National Steeplechase Association.

The commission, in its discretion, may establish and appoint the members of subcommittees of the advisory committee for each breed of horse participating in the fund program. Each subcommittee shall be composed of one commissioner, the executive secretary of the commission, two advisory committee members, a member representing an owner or operator of a horse racing facility, and an at-large member associated with the breed of horse participating in the fund program. All appointments shall be approved by the commission.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 2.1, eff. January 27, 1993; amended, Volume 14, Issue 07, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 04, eff. October 16, 2000; Volume 18, Issue 20, eff. May 22, 2002; Volume 30, Issue 18, eff. May 31, 2014.

Part III
Thoroughbreds

11VAC10-130-30. Commencement of registration.

The commission shall establish a date when owners of Thoroughbred stallions shall commence registering their stallions and breeders of Virginia-bred Thoroughbred horses shall commence registering their foals. No fee shall be assessed for registering stallions or foals prior to the date for the commencement of registration.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 3.1, eff. January 27, 1993; amended, Volume 14, Issue 07, eff. January 22, 1998.

11VAC10-130-40. Stallion registration.

A. Initial registration. For a stallion owner to be certified to receive stallion owner awards from the Virginia Breeders Fund, the stallion owner shall register his stallion with the commission or its designee by satisfying the following requirements:

1. Each year prior to the commencement of the breeding season, but no later than January 31, or within 30 days following the entry into stud in Virginia if entry is after the breeding season commences, the owner or authorized agent shall submit an application on a form approved by the commission that shall set forth the name of the stallion, year of foaling, registration number, pedigree, including sire, dam and sire of the dam, where the stallion is standing at stud, the date of entry to stud if after the commencement of the breeding season, and the names and addresses of owners and lessees; and

2. The application shall be signed and dated by the owner or lessee, or the authorized agent.

B. Registration fees. A stallion may be registered with the commission or its designee for the breeding season after January 31 or 30 days following its entry into stud in Virginia. A registration fee of $100 for current members of the Virginia Thoroughbred Association (VTA) and $200 for non-VTA members shall accompany the application. A late registration fee of $250 for current VTA members and $350 for non-VTA members shall be assessed. A late registration of a stallion shall be accepted by the commission or its designee until August 1 for that breeding year.

C. Change of ownership. If there is a change in ownership or the stallion is subsequently leased or syndicated or the location of where the stallion is standing is changed, the new owner, lessee or syndicate manager shall submit to the commission or its designee a new application for stallion registration.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 3.2, eff. January 27, 1993; amended, Volume 14, Issue 07, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 04, eff. October 16, 2000; Volume 28, Issue 13, eff. March 27, 2012; Volume 30, Issue 18, eff. May 31, 2014.

11VAC10-130-50. (Repealed.)

Historical Notes

Derived from VR662-04-04 § 3.3, eff. January 27, 1993; repealed, Volume 14, Issue 07, eff. January 22, 1998.

11VAC10-130-51. Foal registration.

A. Requirements. For an owner or lessee of a dam to be certified to receive breeder awards from the Virginia Breeders Fund, the owner or lessee must register his foal with the commission or its designee by satisfying the following requirements:

1. The breeder, owner, lessee, or his authorized agent must submit an application on a form approved by the commission, including the name of the stallion; the name of the dam; the sire of the dam; the sex; color; year of birth; the location of foaling; and name, address and telephone number of the owner, lessee or his authorized agent;

2. The application must be signed and dated by the breeder, owner, lessee, or his authorized agent; and

3. As of September 1, 1999, all Virginia-bred Thoroughbred horses must be registered with the commission or its designee prior to being entered in any race at race meeting designated by the commission for purse supplements or awards from the Virginia Breeders Fund.

B. Registration fees. A foal may be registered by December 31 of its year of foaling by submitting a $25 fee for current members of the Virginia Thoroughbred Association (VTA) and $125 for non-VTA members that must accompany the application for foal registration. A yearling may be registered by December 31 of its yearling year by submitting a $50 fee for current VTA members and $150 for non-VTA members that must accompany the application for foal registration. A two-year-old or older may be registered by submitting a $200 fee for current VTA members and $300 for non-VTA members, which must accompany the application for foal registration.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from Volume 14, Issue 07, eff. January 22, 1998; amended, Virginia Register Volume 15, Issue 26, eff. August 25, 1999; Volume 18, Issue 20, eff. May 22, 2002; Volume 28, Issue 13, eff. March 27, 2012; Volume 30, Issue 18, eff. May 31, 2014.

11VAC10-130-52. Virginia-Sired Thoroughbreds.

A Virginia-sired Thoroughbred may be registered with the commission or its designee by submitting a $25 fee for current members of the Virginia Thoroughbred Association (VTA) and $125 for non-VTA members that must accompany an application for registration in the Virginia Breeders Fund. The payment of the registration fee and filing of the application shall occur prior to entry in any race at a race meeting designated by the commission. Such registration shall entitle the horse to entry into races restricted to Virginia-bred Thoroughbreds and purse supplements, but shall not entitle a Virginia-sired Thoroughbred to other awards from the Virginia Breeders Fund.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from Volume 18, Issue 20, eff. May 22, 2002; amended, Virginia Register Volume 28, Issue 13, eff. March 27, 2012.

11VAC10-130-60. Fund distribution; allocation of funds.

The funds generated by pari-mutuel wagering on Thoroughbred horse races for the Virginia Breeders Fund shall be allocated on the following schedule or as the commission deems appropriate in order to promote, sustain, and grow a native industry:

1. 35% shall be set aside for payment to the breeders of Virginia-bred Thoroughbred horses that win races at a race meeting designated by the commission;

2. 15% shall be set aside for payment to owners or lessees of registered Virginia stallions that sire Virginia-bred Thoroughbred horses that win races at race meetings designated by the commission; and

3. 50% shall be paid to supplement purses as determined by the commission under the following provisions:

a. An award may be paid to the owner or owners of a Virginia-bred Thoroughbred horse each time the horse earns purse money in a nonrestricted race at race meetings licensed by the commission or wins races at race meetings designated by the commission;

b. The maximum amount payable for breeder or stallion owner awards to a Virginia-bred Thoroughbred horse for any single race shall be $25,000;

c. The maximum amount payable for an owner award to a Virginia-bred Thoroughbred horse for any single race run in Virginia shall be $25,000, and the maximum amount payable for an owner award for any single race in any other jurisdiction shall be $5,000; and

d. Purses shall be paid for races restricted to Virginia-bred Thoroughbred horses.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 3.4, eff. January 27, 1993; amended, Volume 14, Issue 07, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 04, eff. October 16, 2000; Volume 17, Issue 19, eff. May 7, 2001; Volume 18, Issue 20, eff. May 22, 2002; Volume 23, Issue 11, eff. January 10, 2007; Volume 24, Issue 16, eff. April 14, 2008.

11VAC10-130-70. Restricted races.

The racing secretary at each unlimited race meeting licensed by the commission may include in the condition book restricted races that equal not less than 5.0% of the total nonsubstitute races included in that book, and that those races shall be run if six separate wagering interests are entered. If there is not a sufficient number of registered Virginia-bred horses entered to fill the race, then the racing secretary may substitute another race.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 3.5, eff. January 27, 1993; amended, Volume 14, Issue 07, eff. January 22, 1998; Volume 17, Issue 04, eff. October 16, 2000; Volume 17, Issue 19, eff. May 7, 2001.

Part IV
Standardbreds

11VAC10-130-75. Commencement of registration.

The commission shall establish a date when owners of Standardbred stallions shall commence registering their stallions and breeders of Virginia-bred Standardbred horses shall commence registering their foals.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from Volume 14, Issue 07, eff. January 22, 1998.

11VAC10-130-76. Stallion registration.

A. Initial registration. For a stallion owner to be certified to receive stallion owner awards from the Virginia Breeders Fund, the stallion owner must register his stallion with the commission or its designee by satisfying the following requirements:

1. Each year prior to the commencement of the breeding season, but no later than January 31, or within 30 days following the entry into stud in Virginia if entry is after the breeding season commences, the owner or authorized agent shall submit an application on a form approved by the commission that shall set forth the name of the stallion; year of foaling; registration number; pedigree, including sire, dam and sire of the dam; where the stallion is standing at stud; the date of entry to stud if after the commencement of the breeding season; and the names and addresses of owners and lessees;

2. The application must be signed and dated by the owner or lessee, or the authorized agent;

3. A notarized copy of the stallion's Certificate of Registration, clearly showing the front and transfer side of the document, must accompany the application;

4. If the stallion is held under a lease or a syndicate agreement, a copy of the lease or agreement must accompany the application, and the lease or agreement must include a statement that the lessee or syndicate manager is authorized to sign the Service Certificate and receive stallion awards; and

5. The owner or authorized agent must submit to the commission a notarized copy of The United States Trotting Association's Report of Mares Bred at the conclusion of the breeding season and no later than December 31 of the breeding year.

B. Registration fees. A stallion may be registered with the commission or its designee for the breeding season after January 31 or 30 days following its entry into stud in Virginia. A registration fee of $100 shall accompany the initial application.

C. Change of ownership. If there is a change in ownership, or the stallion is subsequently leased or syndicated, or the location of where the stallion is standing is changed, the new owner, lessee or syndicate manager must submit to the commission or its designee a new application for stallion registration.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from Volume 14, Issue 07, eff. January 22, 1998; amended, Virginia Register Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 04, eff. October 16, 2000.

11VAC10-130-77. Foal registration.

A. Requirements. For an owner or lessee of a dam to be certified to receive breeder awards from the Virginia Breeders Fund, the owner or lessee must register its foal with the commission or its designee by satisfying the following requirements:

1. The owner, lessee or his authorized agent must submit an application, on a form approved by the commission, including the name of the stallion; the name of the dam; the sire of the dam; sex; color; year of foaling; and name, address and telephone number of the owner, lessee or his authorized agent;

2. The application must be signed and dated by the owner, lessee or his authorized agent;

3. If the dam is held under a lease, a statement to that effect and a copy of the lease, which must include a statement that the lessee is authorized to register the foal, must accompany the application; and

4. All Virginia-bred Standardbred horses must be registered with the commission or its designee prior to being entered in races.

B. Registration fees. A foal may be registered with the commission or its designee.

C. Embryo/ovum transplants. Effective with foals of 2003 and thereafter, foals other than the first foal each year produced by any method including but not limited to embryo/ovum transplant shall be ineligible for racing or breeding in the Commonwealth of Virginia. This regulation shall not apply in the case of same birth twins. In addition, any future offspring of foals not eligible for racing or breeding under this regulation shall also not be eligible for racing or breeding in the Commonwealth of Virginia.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from Volume 14, Issue 07, eff. January 22, 1998; amended, Virginia Register Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 04, eff. October 16, 2000; Volume 20, Issue 04, eff. October 14, 2003.

11VAC10-130-80. Allocation and restriction of funds.

A. Allocation. The funds generated by harness racing through pari-mutuel wagering shall be allocated according to the following schedule:

1. 15% may be set aside for payment to the breeders of Virginia-bred Standardbred horses that win races at horse racing facilities licensed by the commission;

2. 10% may be set aside for payment to the owners or lessees of Virginia Standardbred stallions that sire Virginia-bred Standardbred horses that win races at horse racing facilities licensed by the commission; and

3. 75% may be paid to supplement purses according to the following provisions:

a. Not less than 75% may be set aside to develop a stakes program for Virginia-bred Standardbred horses; and

b. Any remaining amounts shall be set aside and may be paid to the owner or owners of a Virginia-bred Standardbred horse each time the horse wins or earns purse money in a nonrestricted race at a horse racing facility licensed by the commission.

B. Restriction. During the first five calendar years of live pari-mutuel harness racing in the Commonwealth, payment of stallion owner and breeder awards shall be limited to an amount not exceeding 20% of that horse's nonmaiden nonsupplemented first-place purse used in the calculation and 40% of that horse's maiden nonsupplemented first-place purse used in the calculation.

C. Restricted races. The racing secretary at each unlimited race meeting licensed by the commission shall include on the condition sheet at least one race each day restricted to Virginia-bred Standardbred horses and the race shall be run if six separate betting interests are entered. If there is not a sufficient number of registered Virginia-bred horses entered to fill the race, then the racing secretary may substitute another race.

Statutory Authority

§ 59.1-369 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 4.1, eff. January 27, 1993; amended, Volume 14, Issue 07, eff. January 22, 1998; Volume 17, Issue 04, eff. October 16, 2000; Volume 19, Issue 03, eff. September 27, 2002.

Part V
Arabians and Quarter Horses

11VAC10-130-90. Allocation of funds.

The funds generated by Arabian and Quarter horse racing through pari-mutuel wagering shall be allocated to the breed which generated the funds according to the following schedule:

1. 20% shall be set aside for payment to the breeders of Virginia-bred horses that win races at horse racing facilities licensed by the commission;

2. 10% shall set aside for payment to the owners or lessees of registered Virginia stallions which sire Virginia-bred horses that win races at horse racing facilities licensed by the commission; and

3. 70% shall be paid to supplement purses according to the following provisions:

a. A purse supplement may be paid to the owners of Virginia-bred horses each time Virginia-bred horses win nonrestricted races at horse racing facilities licensed by the commission; and

b. A purse supplement shall be paid to purses for races restricted to Virginia-bred horses.

Statutory Authority

§§ 59.1-369 and 59.1-372 of the Code of Virginia.

Historical Notes

Derived from VR662-04-04 § 5.1, eff. January 27, 1993.

FORMS (11VAC10-130).

Virginia Breeders Fund Application for Registration of a Virginia Thoroughbred Stallion (rev. 03/12).

Virginia Breeders Fund Application for Registration of a Virginia-Bred Thoroughbred (rev. 03/12).

Virginia Breeders Fund Application for Registration of a Virginia-Sired Thoroughbred (rev. 03/12).

Standardbred Foal Registration Form (rev. 02/12).

2 Year Olds Virginia Breeders Fund Virginia-Bred Standardbred Registration Form (rev. 02/12).

3 Year Olds Virginia Breeders Fund Virginia-Bred Standardbred Registration Form (rev. 02/12).

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