Chapter 128 of the General Laws is hereby amended by striking out section 2(g) and inserting in place thereof the following:-

(g) Promote, develop and encourage through the Massachusetts Thoroughbred Breeding Program, the breeding of thoroughbred horses in the commonwealth by offering cash prizes to breeders of such horses in the following manner: the Massachusetts Thoroughbred Breeders Association, Inc. shall from time to time after discussion with the director of racing set the percentages for bonuses to be awarded to the breeder of a Massachusetts bred thoroughbred horse, of the purse monies won by said thoroughbred horse in any pari-mutuel running horse race if said horse finishes first, second, third, fourth or fifth; the percentage for incentives to the owner of the stallion, at the time of service to the dam of such purse winner; provided, however, that (i) the stallion was registered by February 1st and stood the entire breeding season for that year in the commonwealth, (ii) the horse finishes first, second, third, fourth or fifth and (iii) said stallion is registered with the Massachusetts Thoroughbred Breeders Association and was not registered to stand in any other state that year; the percentage for incentives for the purse monies won by said thoroughbred horse in any unrestricted pari-mutuel running horse race held within or outside the commonwealth to the owner of a Massachusetts bred/accredited horse if said horse finishes first, second, third, fourth or fifth.

The Massachusetts Thoroughbred Breeders Association, Inc. is further authorized to pay incentives for races to be limited to Massachusetts bred and accredited thoroughbred race horses from the Massachusetts thoroughbred breeding program at licensed pari-mutuel race meetings authorized by the state racing authority and after discussion with the Massachusetts director of racing, and to pay cash incentives to encourage breeding in Massachusetts. Such races may be betting or non-betting races and may or may not be scheduled races by the licensee conducting the racing meeting. Purse monies paid by the association under this section may be in such amounts as the association shall determine and may be the sole cash purse for such races or may be supplemental to the cash purses established by the licensee; and such discretion shall include the discretion to set an overall cap on awards earned.

No person shall be eligible for the prizes provided herein unless the following standards are met:

(1) The foal of a thoroughbred mare that drops said foal in the commonwealth and is bred back to a Massachusetts registered stallion shall be a Massachusetts bred; or

(2) The foal of a thoroughbred mare who resides in the commonwealth continuously for at least 90 days which includes foaling and foals in the commonwealth shall be Massachusetts bred.

(3) Any foal that is raised in the commonwealth for six months continuously prior to December 31st of its two year old year shall be a Massachusetts accredited horse.

(4) In either case of subparagraph (1),(2) or (3) each thoroughbred foal dropped or raised in the commonwealth shall be registered with the Jockey Club, and the Massachusetts Thoroughbred Breeders Association.

(5) Prior to the first day of September of each year, each person standing a thoroughbred stallion in the commonwealth at either private or public service shall file with the the Massachusetts Thoroughbred Breeders Association:

(a) a list of all thoroughbred mares bred to such stallion in that year; and (b) a verified statement representing that said stallion stood the entire breeding season in the commonwealth.

A Massachusetts accredited thoroughbred shall be eligible for any Massachusetts bred race, except for Massachusetts restricted stakes races. For Massachusetts bred stake races Massachusetts accredited horses may enter to fill the race after all Massbreds have already been entered in the race (Massbreds preferred). “Full race” to be determined by MTBA and the hosting track for the race.

Prior to the first day of September of each year, each person raising a weanling or yearling in Massachusetts for six months prior to December 31st of the horse’s two-year old year shall file with the Massachusetts Thoroughbred Breeders Association a verified statement that it is raising the horse in Massachusetts and the location of the horse.

The Massachusetts Thoroughbred Breeders Association, Inc. is hereby further authorized to pay foaling bonuses to the owner of any mare that foals within the Commonwealth. To be eligible for such bonus, prior to foaling, the owner of such mare shall file with the Massachusetts Thoroughbred Breeders Association a verified statement that the mare is in foal, the expected due date and the location of the mare.

The Massachusetts Thoroughbred Breeders Association, Inc.is hereby further authorized to expend up to twelve percent of the amount received each fiscal year for said program for advertising, marketing, promotion, and administration for the thoroughbred breeding program in the commonwealth.

The state auditor shall annually audit the books of the Massachusetts Thoroughbred Breeders Association Inc., to ensure compliance with this section.