Section R19-2-319. Arizona Bred Eligibility and Breeders’ Award Payments

A.      A breeder shall file a notarized certificate affirming eligibility under A.R.S. § 5-113(F) with the Department. The certificate shall include name, color, and sex of the animal; name of the sire; name of the female; date and location of whelping; National Greyhound Association registration number; left and right ear identification numbers; name, address, and telephone number of the breeder; a statement that the animal is eligible pursuant to A.R.S. § 5-113(F) and that the person shown as the breeder was the owner of the female at the time of whelping; and such other information as may be required by the Depart- ment to determine eligibility and shall be signed by the breeder. The breeder shall submit a copy of the National Grey- hound Association registration papers with the certificate.

1.        Certification is deemed to occur upon the Department’s receipt of the completed certificate.

2.        The greyhound shall be certified by the Department at the time of the win to be eligible for an award.

B.       A permittee shall recognize any greyhound for which there is an Arizona Bred Certificate on file with the Department as an Arizona bred greyhound.

C.      Breeders’ awards are not to be paid on nominating, sustaining, or starting fees.

D.      The Department shall calculate and pay breeders’ awards to eligible breeders.

1.        Definitions.

a.         “Quarterly Breeders’ Award” means an amount of money based on the quarterly breeders’ award pay- ment factor determined by the Department each fis- cal year by October 30.

b.        “Substitute Breeders’ Award” means an amount of money based on a substitute payment factor because of the lack of sufficient money to pay conventional Quarterly Breeders’ Awards.

c.         “Supplemental Breeders’ Award” means an amount of money that corrects a shortfall between conven- tional Quarterly Breeders’ Awards and Substitute Breeders’ Awards.

d.        “End-of-year Bonus Award” means an amount of money that may be paid to breeders from available monies that remain in the breeders’ award fund after payment of Quarterly Breeders’ Awards, Substitute Breeders’ Awards and Supplemental Breeders’ Awards.

2.        The Department shall pay awards at the end of each fiscal year quarter, provided that the total amount of the awards payments does not exceed the total amount of money available in the fund less the amount required to be set aside for contingent liabilities in subsection (D)(8).

3.        Quarterly Breeders’ Awards. Before October 30 of each year, the Department shall determine a quarterly breed- ers’ award payment factor that will be applied during the entire fiscal year. The payment factor determined by the Department is not subject to appeal.

a.         The Department shall evaluate anticipated revenues for the breeders’ award fund and anticipated purses for eligible Arizona-bred animals and set the pay- ment factor at a level that permits recipients of quar- terly breeders’ awards to receive awards throughout the fiscal year based on the same payment factor.

b.        The Department shall notify representatives of each breeders’ association of the quarterly breeders’ award payment factor in writing before October 30 of each year.

c.         The Department shall calculate quarterly breeders’ awards by multiplying the amount of each purse won by an eligible animal during that quarter by the quarterly breeders’ award payment factor estab- lished for the fiscal year.

d.        The Department shall make quarterly breeders’ awards not later than 30 days after the end of each quarter, unless full quarterly breeders’ awards can- not be made due to the lack of available money in the fund.

4.        Substitute Breeders’ Awards. The Department shall make substitute breeders’ awards if there are sufficient monies in the fund to allow for an award but not enough monies to provide for full payments of quarterly breeders’ awards based on the quarterly breeders’ award payment factor.

a.         The Department shall determine the substitute pay- ment factor by dividing the total amount of monies in the Arizona breeders’ award fund at the end of the

	quarter less the amount required to be set aside for		b.     The Department shall give written notice of the deci-
	contingent  liabilities   in  subsection   (D)(8)  by  the		sion to an applicant by mailing it to the address of
	total amount of purses won by eligible Arizona-bred		record filed with the Department.
	animals during that quarter.		c.      After   service    of   the   Director’s   decision,    an
	b.     The Department shall calculate substitute breeders’		aggrieved party may obtain a hearing under A.R.S.
	awards by multiplying the amount of each purse		§§ 41-1092.03 through 41-1092.11.
	won by an eligible animal during that quarter by the		d.     The aggrieved party shall file a notice of appeal with
	substitute payment factor for that quarter.		the Department within 30 days after receiving the
5.	End-of-year bonus pool. After payment of all quarterly		notice prescribed in R19-2-319(D)(10)(b).
	breeders’ awards and any substitute breeders’ awards has		e.      The Department shall notify the Office of Adminis-
	been  calculated,   the  Department   shall  determine  the		trative Hearings, which shall schedule and conduct
	amount of monies remaining in the fund. The end-of-		the hearing.
	year-bonus pool is the amount of monies remaining in the	E.	The permittees shall submit to the Department an Arizona
	Arizona breeders’ award fund after the payment of all		Breeders’ Award Report in the form prescribed by the Depart-
	quarterly breeders’ awards for the fiscal year less the		ment. The report shall include name of the animal, name of the
	amount required to be set aside for contingent liabilities		breeder, date of win, win purse amount, type of race, name of
	in subsection (D)(8).		track, and such other information as may be required by the
6.	Supplemental Breeders Awards. The Department shall		Department to calculate awards.
	first pay any monies in the end-of-year bonus pool in the	F.	The Arizona Thoroughbred Breeder’s Association, Arizona
	form of supplemental breeders awards to recipients of		Quarter Racing Association, Arizona Greyhound Breeder’s
	substitute breeders’ awards.		Association  and  such  other   associations  as  may  represent
	a.      The Department shall pay supplemental breeders’		breeders in this state may assist the Department in periodic
	awards in an amount equal to the difference between		reviews of eligibility lists and may provide such other assis-
	the  substitute  breeders’  award  and   the  quarterly		tance in administering the fund as may be required by the
	breeders’ award the breeder would have received if		Department.
	there had been enough in the fund to pay an award	G.	At least every other three years, the Commission shall select a
	based on the quarterly award payment factor.		committee,  consisting  of   representatives  of   each  breeders’
	b.     In the event the end-of-year bonus pool cannot pay		association and the Department, which shall review this rule
	supplemental breeders’ awards to make up for the		and submit written recommendations to the Commission.

shortfall to all substitute breeders’ award recipients, the Department shall pay supplemental breeders’ awards to all breeders eligible to receive a supple- mental breeders’ award on a pro-rata basis.

c.         A breeder is eligible to receive a supplemental breeders’ award from the end-of-year bonus pool only if the breeder received a substitute breeders’ award during that fiscal year.

d.        The Department shall not make supplemental breed- ers’ awards if all eligible breeders received quarterly breeders’ awards during the fiscal year.

7.        End-of-year Bonus Awards. The Department shall pay end-of-year bonus awards if monies remain in the end-of- year bonus pool following any supplemental payments.

a.         The Department shall determine an end-of-year bonus payment factor by dividing the monies in the end-of-year bonus pool by the total amount of purses won by an eligible animal during the fiscal year.

b.        The Department shall calculate end-of-year bonus awards by multiplying the amount of each purse won by an eligible animal by the bonus payment fac- tor.

8.        Contingent   liabilities.   The   Department    shall   retain

$10,000 in the Breeders’ Award fund for contingent lia- bilities.

9.        The Department shall not make quarterly breeders’ awards, substitute breeders’ awards, supplemental breed- ers’ awards or end-of-year bonus breeders’ awards if the total  amount  available   for  distribution   is  less  than

$10,000. In the event the Department does not pay an award because less than $10,000 is available for distribu- tion, the Department shall carry forward the amount in the fund for payment of awards when the Department next calculates awards.

10.     Appeal of Director’s Rulings

a.         The Director shall make the final decision concern- ing a breeders’ award.

Historical Note

Adopted effective August 5, 1983 (Supp. 83-4).  Amended subsection (A) effective August 21, 1985 (Supp. 85-4). Amended subsection (A) and added subsec- tions (D) through (G) effective August 13, 1986 (Supp.

86-4). Amended subsection (D) effective February 19, 1987 (Supp. 87-1). Amended effective March 20, 1990 (Supp. 90-1). R19-2-319 recodified from R4-27-319 (Supp. 95-1). Amended effective January 10, 1997 (Supp.

97-1).