Chapter 220. Virginia Horse Breeder Incentive Program
2VAC5-220-10. Program purpose.
The Virginia Horse Breeder Incentive Program is designed to encourage, expand, and develop the breeding of horses in Virginia. This program is administered by the Virginia Department of Agriculture and Consumer Services with the assistance of horse organizations in the Commonwealth.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 1, eff. February 17, 1988.
2VAC5-220-20. Limitations on the use of public (General Fund) money.
Financial awards to breeders shall be distributed only to the extent that public funds made available to the department for the program are matched dollar for dollar by private funds. At no time shall private money be collected or otherwise controlled or administered by the department, nor shall public matching money be awarded directly to any horse organization. Public matching money from the General Fund shall be awarded directly only to the owner or breeder of a qualifying animal.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 2, eff. February 17, 1988.
2VAC5-220-30. Statewide equine organization (SEO) acceptance criteria.
The term "statewide equine organization" or "SEO" may be assigned only to organizations meeting all of the following criteria:
1. Where applicable, the organization must be accepted by the breed's or breeds' national registry as the single entity responsible for the total breed's promotion and organization in Virginia.
2. The organization must be the only or the largest organization (in terms of membership) conducting the breed's or breeds' affairs or promotion within Virginia.
3. The organization must be open to all breeders in Virginia meeting basic requirements for membership. These requirements must follow the normal requirements for membership in a horse oriented trade or educational organization, and must not discriminate on the basis of age, sex, religion, or national origin.
4. The organization must be based in Virginia and be predominantly composed of members who are actively engaged in the breeding, use, or promotion of a specific breed or breeds in Virginia.
5. The organization must be registered with the State Corporation Commission of Virginia.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 3, eff. February 17, 1988.
2VAC5-220-40. Procedures for acceptance of SEOs' corresponding programs into the Virginia Horse Breeder Incentive Program (VHBIP).
A. Initial application. The SEO must submit its proposed qualifying private breeder incentive program to the department at least three months prior to the beginning of the fiscal year for which acceptance is requested. The SEO will be notified of acceptance or rejection within 30 days of receipt. The proposed qualifying private breeder incentive program must include:
1. Documentation of the organization's qualifications as a SEO according to the requirements specified by 2VAC5-220-30.
2. A copy of its proposed qualifying private breeder incentive program, including all particulars regarding administrative and reporting capabilities and responsibilities, nomination procedure, fee schedule, type of event (where applicable), and participation and financial distribution estimates.
B. Subsequent applications.
1. Unless a written protest of the sponsoring organization's status as an SEO is lodged with the department at least six months prior to the beginning of the fiscal year for which participation is requested, its status as an SEO shall be continued.
2. Each year for which participation is requested, the accredited SEO must submit a copy of its proposed qualifying private breeder incentive program, including the information required in subdivision A2 of this section. This proposed qualifying private breeder incentive program must be submitted at least three months prior to the beginning of the fiscal year for which participation is requested.
C. Recourse and review procedures. SEOs' which have properly filed necessary requests for inclusion in the program, but which are subsequently rejected on the basis of private program structure or failure to meet Virginia Department of Agriculture and Consumer Services' (VDACS) requirements, may appeal for review of its original request to the Commissioner of Agriculture and Consumer Services. During review proceedings, the petitioning SEO must provide evidence supporting its original request. The commissioner shall either recommend inclusion in the program or let the original VDACS ruling stand.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 4, eff. February 17, 1988.
2VAC5-220-50. Responsibilities of SEOs accepted into the program.
A. After acceptance into the program, the SEO must furnish full records of all private money distributed through its deciding events including derivations of this money (whether nomination fees or added money). The SEO must furnish complete information including the horses' names, events or divisions of events for which private money was received, date of the events, the name, complete address, and telephone number of the person receiving the private money, whether the person is the owner, or breeder or both, date of distribution of private money, documentation of person's eligibility to receive money under the requirements and guidelines of the state program, and documentation of the winning horse's eligibility for inclusion in the event.
B. The SEO must furnish an audit report prepared by a licensed CPA of the appropriate event if so required by the department.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 5, eff. February 17, 1988.
2VAC5-220-60. Horse eligibility.
To be acceptable under this program, and to be labeled "Virginia bred," the horse must have been foaled in Virginia. The location of stallion and mare at time of conception does not alter this requirement. SEO's, at their discretion, may require residency of the mare or stallion in Virginia, or any additional criteria subject to approval by the department.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 6, eff. February 17, 1988.
2VAC5-220-70. SEO payee determination.
The appropriate SEO (according to the normal operating business procedure of its breed group) must define who is to receive the private financial award and, thus, any available public matching money.
For purposes of distribution of public matching funds, one of the following definitions must be adopted by the SEO and be so stated in its application for acceptance into the program:
1. The recipient of matching public money will be the legal owner (regardless of whether the breeder of record) of the animal at the time of the animal's competition win. This competition win must be in a futurity, show, or race included in the program of the individual SEO.
2. The recipient of matching public money will be the breeder of record (as duly recorded with the appropriate state or national breed association) regardless of ownership at the time of the deciding competition.
3. At no time may public matching money be awarded to any person not receiving the private financial reward from the SEO. Public money will only be awarded on a matching basis to private money awarded to individuals by the SEO.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 7, eff. February 17, 1988.
2VAC5-220-80. Recipient eligibility.
To be eligible to receive any public money, the proposed recipient must be "actively engaged in the breeding of horses in Virginia." To qualify as one "actively engaged in the breeding of horses in Virginia," the person must satisfy at least one of the following criteria:
1. The person (regardless of legal residence) must have stood a stallion for one complete breeding season in Virginia during the previous three years.
2. The person (regardless of legal residence) must have owned a mare or mares which were either bred in Virginia or stabled in Virginia for one year during the previous three years.
3. If a Virginia resident, the person must demonstrate (either through ownership of breeding stock or horses accepted in this program) activity in the Virginia horse breeding industry.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 8, eff. February 17, 1988.
2VAC5-220-90. Operating period.
The Virginia Horse Breeder Incentive Program shall operate on the same fiscal year as the Commonwealth of Virginia, extending from July 1 of one year through June 30 of the next year.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 9, eff. February 17, 1988.
2VAC5-220-100. Distribution of public money.
A. General requirements.
1. Matching money policy. Any public money available to the department for use in the VHBIP shall be distributed only to qualifying persons receiving funds from their private sector SEO program. Any public matching money shall be distributed to qualifying persons on not more than a one-to-one, or dollar for dollar basis with money received from the private sector programs.
2. Maximum individual receipt. During any calendar year, no one person shall receive more than 10% of the total public money available, regardless of membership in more than one SEO or any other factor.
3. Maximum ratio for matching. So long as the total private contribution does not exceed the total public money available during any one fiscal year, persons qualifying shall receive the public matching money on a one-to-one basis with money received from the appropriate SEO.
B. Determination of individual receipt. During any year in which total private funds paid out to eligible recipients by the SEOs exceeds the total of public matching money available, a percentage method shall be used to determine the amount of public matching money to be distributed to qualified individuals in each participating SEO.
The VHBIP percentage method formula to determine the amount of public matching money to be distributed to qualified individuals according to SEO affiliations will be as follows:
1. Determination of total available funds for members of individual SEOs.
a. The amount of private money paid out to its program participants by each SEO shall be determined from the SEO's records submitted to the department.
b. The amount of each SEO's private total shall be shown as a percentage of the total private money distributed by all SEOs.
c. This percentage will be multiplied by the total public matching money available to qualified members of that SEO's program.
2. Determination of actual individual receipt. Determination of the actual amount of public matching money to be distributed to any individual shall be accomplished according to the following method:
a. The total amount of private money paid out to its program participants by each SEO shall be determined from the SEO's records submitted to the department.
b. The amount received by each individual participant from the appropriate SEO shall be determined from the SEO's records submitted to the department and shown as a percentage of the total SEO private money paid out.
c. This percentage will be multiplied by the total public matching money available to qualified members of the appropriate SEO program, determining the actual amount of public matching money to be paid to the individual.
3. Matching of added money. To avoid dilution of the public matching money available during any year in which total private SEO payout exceeds the total public matching money available, any private money added above the nomination fees for use in any individual SEO total payout may not exceed a percentage (to be determined yearly by the department) of the total added money for that year.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 10, eff. February 17, 1988.
2VAC5-220-110. Payment period.
The department shall make the decision on distribution of any public money available between June 1 and June 30, inclusive, of the fiscal year during which a recipient's horse qualified and was entered in a private corresponding program.
Statutory Authority
§ 3.2-106 of the Code of Virginia.
Historical Notes
Derived from VR115-01-03 § 11, eff. February 17, 1988.