LAST NOVEMBER I summarized proposals arising from discussions over a year ago among a wide spectrum of program stakeholders about ways to attract new broodmares into New York’s program. A shrinking foal crop and the coming retirement of a generation of our most prolific and successful breeders (responsible for as much as 20% of our state foal crop annually) make it essential to restock our mare population. The stark reality is that the New York Racing Association’s commitment (per the franchise agreement) to run 600 state-bred races annually will no longer be binding if the program cannot sustain a New York-bred population sufficient to fill the races. Breeders and stallion owners alike agreed that it is essential to remove barriers that are currently keeping new owners from bringing mares into the state.
The gaming commission and executive chamber received the proposal in late 2019. We have received notice the executive chamber (regulatory review unit) approved the publication of the draft rule change in the Department of State Register Aug. 26, initiating a period of public comment lasting 60 days when breeders and other interested parties can respond in writing to the proposed rule.
Click here to read the proposed rule
The public comment period for this proposed rule will run through Oct. 26. After the public comment period runs, the Fund will be in a position to adoptthe proposed rule. If there are public comments received before Oct. 26, the Fund board will need to be apprised, evaluate those public comments, and decidewhether to accept any of them. If the Fund board wishes to accept a public comment that would result in a modification of the proposal, it may then issue a Notice of Revised Rule-making, which would need to again be approved by the Regulatory Review Unit, be published as a Revised Rule Making in theState Register, and be subject to a further public comment period.
As I outlined last year, the most important change is to open “resident mare” status to “Mares from Public Auction” purchased for at least $50,000 (or an amount to be determined annually by the Fund). After dropping a New York-bred foal, such a mare would not (as currently) be obliged to breed back to a New York sire. Instead, she could go to an out-of-state stallion, but only so long as she returns to New York after that breeding and maintains “Resident Mare” status (according to existing rules) until the birth of that second foal.
This is a rule that many of our competing neighboring breeding states currently follow. In fact, they permit mares to be purchased and brought in their states with no minimum purchase price threshold or floor, such as Pennsylvania and Ontario.
Another change aims to reduce the shipping burden on owners of resident mares who currently raise foals in Kentucky. A resident mare going out of state to be bred would be allowed to stay away for 120 days (rather than 90 days) so her new foal can be weaned before she returns to New York. Finally, the 90-day period that a non-resident mare must currently stay in New York after foaling would begin “on arrival” rather than “after foaling.”
It is important to point out that stallion owners involved in our discussions have endorsed the kinds of measures outlined above, agreeing that attracting new mares or breeders will benefit the program as a whole. At the same time, I’ve been successful at brokering an agreement between NYRA and the Fund to further support our stallion population, creating a $5,000 owners’ bonus (by purse money) for New York-sired winners in various maiden and allowance conditions (both state-bred and open) with a potential value of more than $650,000 annually. This commitment has been signed by both NYRA and the Fund and will be instituted a year after the rule change officially takes place.
None of this, however, means that any rule change has been put in place; this officially kicks off an elaborately choreographed State-controlled process of review, comment, and possible revision before the proposed rule change is adopted or rejected.
I urge you to make your views known during the public comment period. The outcome of this process will be a transparent, open format, in the hands of the entire program and all constituents. To comment by October 26th you must send in writing to tegan@nybreds.com or by mail:
Tracy Egan, Executive Director
New York State Thoroughbred Breeding and Development Fund
One Broadway Center, 1st Floor, Schenectady, NY 12305
The timeline is such that if there are no comments requiring a change to the rule, the Fund board could submit its approval to the State for finalization before the November sales. The State will then incorporate the new rules which could take weeks administratively. However, it is important to note the rule as written will apply to all mares bought from public auction 2019 forward who’ve followed the new protocols.
Lastly, New York has reopened indoor businesses such as bowling alleys, museums, and gyms. Schools are reopening. If they can all open successfully, hopefully the casinos may get their chance to open sooner than a 2021 timeline. NYRA is functioning in this reduced environment and surviving. Yes, it’s for reduced days and purses. Rest assured, NYTB and NYTHA are working to ensure there will be a winter meet at Aqueduct under these same principles. You can count on that happening.
Sincerely,
Jeffrey A. Cannizzo, Executive Director
What mares would become eligible
from 2019 sales under the new rule?
As these very tough times for TB Breeders have developed out of no where do to the Covid 19 Pandemic, I think adjustments need to be made to the NY Breeders Program for me to continue foaling in NY. My main reason for breeding my mares in NY are two fold.
1. I own Breeding Rights in Destin and Micromanage, which I purchased solely so I would have Stallions to breed back to since I presently do not have resident mares and ship into the state to foal.
2. To take advantage of the Sales available to NY Bred foals. With the Covid 19 restrictions, none of these took place in NY, and this has been a huge loss in income for my program.
I would strongly recommend that you consider the changes proposed by the NY Breeders Committee for the following reasons.
1. Starting the 90 non resident mare requirement upon arrival of the mare to NY. This will allow farms to still make an income from mares shipping in with a reduced expense on their part. The profit margin for a farm boarding a pregnant mare is far greater than the profit for boarding a mare with a foal. So it will actually increase the net income for the boarding farms. This will also enable smaller farms to make an income as the number of individual turn out pastures required will be less for pregnant mares than for mares with foals. So again, a win win for the NY Boarding farms. This will also enable out of State Breeders to ship in before inclement weather and allow their mares more time to acclimate to the NY winter weather. This rule change would definitely increase my commitment to foaling in NY.
2. Allowing mares purchased at Breeding Stock sales to be brought into NY within 2 weeks of purchase and be considered a NY resident is a must in my opinion. However, I do not think there should be a price level for this to come into effect. The goal of this change is to help increase the number of mares in the program. The value of a mare can change over night with a sibling winning a Stake race. For example, I purchased a mare for $1000 at the Keenland sale November 2018. Since then her 1/2 sister’s foal “Shedaresthedevil” has won 2 Grade 3 stake races and earned over $500K. I have turned down several offers for her from KY for her. So she has gone from a mare that I apparently was the only person interested in to a very desirable broodmare. The goal is to increase the number of NY mares so you have an increase foal crop to support NY racing. No one is going to buy a mare to put into their NY resident mare program that they do not feel is going to upgrade their Broodmare band. The final price of the mare is dependent on whether someone else wants to purchase that mare at the “fall of the hammer”. I do not think a buyer should be penalized because they got a great buy on a mare. There should be no minimum “purchase price” and the mare should be allowed to be a resident mare if purchased at the Breeding stock sales and allowed to come into the state as a resident mare within 2 weeks of sale purchase. If this rule were to come to fruition, I would purchase and send mares from the sale to NY and take advantage of the Resident mare program.
3. As a Veterinarian, I feel allowing the “out of state time period for breeding” to extend to 120 days is a benefit to the health of the foal. This will allow most of the foals to be older and stronger and able to survive the stress of the 16-18 hour shipping time from NY to KY. By allowing these foals to be older and stronger, there will be less likely of loss of foals do to pneumonia etc and consequently more foals available for the racing program.
I think these proposed rule changes will be a positive for the NY Breeders and Racing program. They would definitely increase my NY involvement for my mares.
Thank you, as directed and according to the State regulations you must send your individual comments directly to the New York Thoroughbred Breeding & Development Fund, Executive Director, Tracy Egan at tegan@nybreds.com or by mail in order for them to be considered for formal record.
Rick,
Please send any comments (along with this) over to the Fund directly per the rules of the State for public comment to tegan@nybreds.com in order for them to be formally documented. Thank you.
To address your question: under the rule (as written) a mare purchased from public auction would have to meet these requirements outlined in the rule which is in the link above:
Effective for public auction sales occurring on or after November 1, 2019, a non-resident mare that is purchased in foal through public auction will be deemed to be a resident mare for all purposes if each of the following conditions is satisfied:
(1) the mare is purchased for at least $50,000 (or such other amount as the fund may determine annually and prominently disclose on the fund’s website on or before July 1 of each year) in the public auction;
(2) the mare is present in New York State within 15 days after the sale is concluded;
(3) the foal from public auction mare is foaled in New York State; and
(4) thereafter, the mare is continuously in residence in New York State from within 120 days after last cover in the year of conception of another foal and remains in residence until foaling (such mare shall not be subject to breed-back requirements set forth in section 4081.3 of this Part).