(a) Establishment.--There is created a restricted account in the State Racing Fund to be known as the Pennsylvania Sire Stakes Fund which shall consist of the money deposited under section 9334 (relating to State Racing Fund and tax rate) and any provision of 4 Pa.C.S. Pt. II (relating to gaming) and which shall be administered by the commission.

(b) Distribution and use of funds.--Funds shall be distributed as follows:

(1) Sixty percent of the money remaining in the excess fund account of the Pennsylvania Sire Stakes Fund at the end of the calendar year in which this subsection is enacted shall be distributed to licensed racing entities that conduct standardbred horse race meetings to be used in the next succeeding calendar year as purse money for Pennsylvania-sired horses. The remaining 40% of the money in the excess fund account at the end of the calendar year of the enactment of this subsection, together with the interest earned on that money, shall be distributed to licensed racing entities that conduct standardbred horse race meetings to be used in the next succeeding calendar year as purse money for Pennsylvania-sired horses.

(2) After deduction of sufficient funds to cover the commission's cost of administration, 80% of all remaining money in the Pennsylvania Sire Stakes Fund at the end of the calendar year shall be distributed to licensed racing entities that conduct standardbred horse race meetings to be used as purse money for Pennsylvania-sired horses. The commission may allocate up to a total of 40% of the amount to be distributed to licensed racing entities in a calendar year for use for a series of championship final races at the racetracks of licensed business entities that conduct standardbred horse race meetings. The commission shall distribute the money to these championship final races in an equal amount for each sex, age and gait for two-year-old trotters and pacers and three-year-old trotters and pacers based on conditions establishing eligibility to these final events. No pari-mutuel standardbred racetrack shall be awarded more than 50% of the championship final races in any calendar year. The commission shall schedule these final events so as to evenly alternate classes at each racetrack each year. After the allocation for the championship final races has been determined, the remaining funds to be distributed to licensed racing entities that conduct standardbred horse race meetings shall be divided equally among the licensed racing entities. Each licensed racing entity shall divide the funds received equally for each of:

(i) four two-year-old races; one pace for colts, one pace for fillies, one trot for colts and one trot for fillies; and

(ii) four three-year-old races; one pace for colts, one pace for fillies, one trot for colts and one trot for fillies.

(c) Purse money.--Each allotment shall provide purse money for the respective races. The purse money shall be in addition to any entry fees or other funds available.

(d) Entry restriction.--Entry for these races shall be limited to standardbred horses which were sired by a standardbred stallion regularly standing in Pennsylvania, and each race shall be designated a Pennsylvania sire stakes race. The commission shall adopt regulations as necessary to administer the entry restriction.

(e) Agricultural fairs and events.--

(1) The following shall apply:

(i) The remaining money in the Pennsylvania Sire Stakes Fund, up to a total of $75,000 for each agricultural fair and one-day or two-day events as defined in the commission's regulations, shall be divided equally among the agricultural fairs and one-day or two-day events.

(ii) No more than five one-day or two-day events may be authorized by the commission per year.

(iii) No more than two one-day or two-day events per county may be authorized by the commission except if, after a date established by the commission, the five events referenced under subparagraph (ii) conducting harness horse races for two-year-old and three-year-old harness horses have not been allocated.

(iv) Not less than $225,000 shall be allocated from the Pennsylvania Sire Stakes Fund and be divided equally among agricultural fairs and one-day or two-day events conducting harness horse races for two-year-old and three-year-old harness horses.

(2) Each fair or one-day or two-day event receiving funds under this subsection shall divide the total amount equally among all eligible races for two-year-old and three-year-old harness horses and shall apply the funds solely as additional purse funds. Only races to which entry is restricted to Pennsylvania-sired horses shall be eligible. The commission shall provide for and promulgate regulations necessary for the proper administration of racing provided for under this subsection, including, but not limited to, portable stall rentals at one-day or two-day events.

Cross References. Section 9337 is referred to in section 1406 of Title 4 (Amusements).