§3A-208.3.

§3A-208.3.
   
   A. There is hereby created in the State Treasury an agency special
   account for the Oklahoma Horse Racing Commission, to be designated the
   "Oklahoma Breeding Development Fund Special Account". The fund shall
   be a continuing fund, not subject to fiscal year limitations, and
   shall consist of all monies received by the Commission for deposit in
   the fund pursuant to Section 205.6 of this title and from revenue
   received as breakage and from unclaimed pari-mutuel tickets. All
   monies accruing to the credit of said fund are hereby appropriated and
   may be budgeted and expended by the Commission for the purposes
   specified in subsection B of this section. Expenditures from said fund
   shall be made upon vouchers prescribed by the State Treasurer and
   issued by the Commission against the Oklahoma Breeding Development
   Fund Special Account. Any person entitled to monies from the Oklahoma
   Breeding Development Fund Special Account as a purse supplement,
   stake, reward, or award, prior to receiving said monies, shall sign an
   affidavit stating that the horse involved complies with the
   requirements for the purse supplement, stake, reward, or award. Any
   person entitled to monies from the Oklahoma Breeding Development Fund
   Special Account as a purse supplement, stake, reward, or award
   ("awards"), will forfeit such monies if that person fails to comply
   with all requirements necessary for earning the awards. Further, any
   such person will forfeit such monies if, within one (1) year from the
   date of the race in which such award was earned, that person does not
   submit the state voucher for payment or for replacement in the event
   of an expired voucher, or if that person fails to submit all
   documentation required by the Oklahoma Horse Racing Commission. In
   such event, monies accrued from forfeiture will be returned to the
   Oklahoma Breeding Development Fund for expenditure by the Commission
   for the purposes specified in subsection B of this section.
   
   B. No monies shall be expended by the Commission from the Oklahoma
   Breeding Development Fund Special Account except for any of the
   following purposes:
   
   1. To provide purse supplements to owners of Oklahoma-bred horses;
   
   2. To provide stakes and rewards to be paid to the owners of the
   winning Oklahoma-bred horses in certain horse races;
   
   3. To provide stallion awards to the owner of the Oklahoma stallion
   which is the sire of an Oklahoma-bred horse if such a horse wins any
   race conducted at a race meeting;
   
   4. To provide breeders awards to the owner of the Oklahoma-registered
   mare which is the dam of an Oklahoma-bred horse if such a horse wins
   any race conducted at a race meeting;
   
   5. To provide monies for equine research through state institutions
   accredited for the same;
   
   6. To provide monies for use in marketing, promoting and advertising
   the Oklahoma-Bred Program and the Oklahoma horse racing industry to
   the people of Oklahoma, the United States and abroad; and
   
   7. To provide for the administration of the Oklahoma Breeding
   Development Program. The cost of administration of this subsection
   shall not exceed five percent (5%) of the prior year's receipts. All
   expenses reimbursed as administrative pursuant to this subsection
   shall be itemized and audited pursuant to subsection E of this
   section. Any monies transferred from the Oklahoma Breeding Development
   Fund Special Account to the Oklahoma Breeding Development Revolving
   Fund for administrative reimbursement found to be unsubstantiated,
   excessive or ineligible for reimbursement by said audit shall be
   returned to the Oklahoma Breeding Development Fund Special Account
   within thirty (30) days of the conclusion of the audit.
   
   C. By rule the Commission shall:
   
   1. Define the term Oklahoma-bred horse;
   
   2. Qualify stallions for participation in Oklahoma-bred stallion
   awards;
   
   3. Provide for the registration of Oklahoma-domiciled mares and
   stallions and Oklahoma-bred horses. No such horse shall compete in the
   races limited to Oklahoma-bred horses unless registered with the
   Commission. The Commission may prescribe such forms as are necessary
   to determine the eligibility of such horses; provided, breeding
   stallions shall be eligible for registration in the Oklahoma-bred
   breeding program until July 1 of the breeding year. No person shall
   knowingly prepare or cause preparation of an application for
   registration of such foals which contains false information;
   
   4. Establish a schedule of fees for the registration of
   Oklahoma-domiciled mares and stallions and Oklahoma-bred horses
   sufficient to provide for all expenses incurred in the administration
   of the Oklahoma Breeding Development Fund Special Account; and
   
   5. Allow a mare registered as Oklahoma-bred racing stock which has not
   been registered as an Oklahoma broodmare prior to foaling to be
   registered as an Oklahoma broodmare upon payment of the registration
   fee and a late fee not to exceed Two Hundred Dollars ($200.00), which
   action shall entitle the foals of the mare to be registered as
   Oklahoma-bred horses provided all other qualifications of the
   Commission are met.
   
   D. The Commission may contract with and designate an official
   registering agency to implement the registration of horses and the
   payment of awards from the Oklahoma Breeding Development Fund Special
   Account. The official registering agency shall operate under the
   supervision of the Commission and be subject to the rules and
   regulations of the Commission. The official registering agency shall
   receive no compensation except fees received for registration of
   horses. In the event the Commission elects to perform as the official
   registering agency rather than contracting for such services, the
   Commission shall deposit all registration fees from the registration
   of Oklahoma-bred horses into the Oklahoma Breeding Development Fund
   Special Account.
   
   E. The State Auditor and Inspector shall audit the Oklahoma Breeding
   Development Fund Special Account on an annual basis. The expense of
   the audit shall be paid from said Special Account.