Governance Committee:      Joseph V. Angiolillo, Esq.

                                         Charles D. Lohrfink

Audit Committee:                 Jacqueline Moody-Czub on behalf of Patrick Hooker

                                          Mark A. Edelman

 BOARD OF TRUSTEES MEETING AGENDA

November 27, 2007- 1:00 PM – Harness Racing Museum, Goshen, NY

Public Comment

1.      Chairman Comments

2.      Minutes of Last Meeting

3.      Current Financial, Fund investments

4.      Internal Control Policies for Board Approval

               1.  Mission Statement

               2.  Hiring Policy

               3.  Communications & Computer Policy

               4.  Credit Card Policy

               5.  Cash Receipts Policy

               6.  Collection Policy & Procedure     

5.      County Fair Rule #32

6.      2008 Race Conditions

7.      2008 Race Schedule

8.      Breeders Awards Recommendations

9.      4-H Budget

10.    Breeding Fund Budget

11.    Trustees Discussion - Other Business

     To view a video of the meetings please click on the following link   

           http://www.webcasting.com/horse/11.27.2007horse.html

Agriculture & NYS Horse Breeding Development Fund

 CODE OF ETHICS

OF THE AGRICULTURE AND NEW YORK STATE

HORSE BREEDING DEVELOPMENT FUND

            Pursuant to the provisions of Section 806 of the General Municipal Law, the Board of Trustees of the Agriculture and New York State Horse Breeding Development Fund ("the Fund") promulgates these rules of ethical conduct for the officers and employees of the Fund.  These rules shall be in addition to any prohibition of Article 18 of the General Municipal Law, Sections 73 and 74 of the Public Officers Law or any other general or special law relating to ethical conduct and interest in contracts of municipal officers and employees.

Definitions

1.        "Officer" or "employee" means an officer or employee of the Fund, whether paid or unpaid, including members of the Board of Trustees and their appointees.

2.         "Interest" means a pecuniary or material benefit accruing to a officer or employee of the Fund unless the context otherwise requires.

Standards of Conduct

            Every officer and employee of the Fund shall be subject to and abide by the following standards of conduct:

1.         Gifts

            a.         An officer or employee shall not directly or indirectly solicit any gift or accept or receive any gift having a value of $75 or more, whether in the form of money, service, loan, travel, entertainment, hospitality, thing or promise, or any other form, under circumstances in which it could reasonably be inferred that the gift was intended to influence him/her in the performance of his/her official duties or was intended as a reward for any official action on his/her part.

            b.         However, nothing herein should be construed as prohibiting the traditional exchange of holiday gifts provided discretion is used to ensure that gifts of value are not accepted by staff employees or officers.  Gifts from children that are principally sentimental in nature and of insignificant financial value may be accepted in the spirit in which they are given.

2.         Confidential Information

            An officer or employee shall not disclose confidential information acquired by him/her in the course of his/her official duties or use such information to further his/her personal interest.  Moreover, much of the material with which the Fund works is confidential in nature.  Employees and Trustees are responsible for protecting the public trust of the Fund.  Disclosure of confidential information or material through carelessness or deliberate action can result in disciplinary proceedings against an employee or Trustee.

3.         Representation before the Fund

            An officer or employee shall not receive or enter into any agreement, express or implied, for compensation for services to be rendered, or the buying and selling of products, in relation to any matter before the Fund, which creates a conflict of interest.

4.         Representation before the Fund for a Contingent Fee

            An officer or employee shall not receive or enter into any agreement, express or implied, for compensation for services to be rendered in relation to any matter before the Fund, whereby the compensation is to be dependent or contingent upon any action by the Fund with respect to such matter. 

5.         Disclosure of Interest in Matters before the Fund

            To the extent that he/she knows thereof, a member of the Board of Trustees and any officer or employee of the Fund whether paid or unpaid, who participates in a discussion or gives official opinion to the Fund on any matter before the Fund, shall publicly disclose the nature and extent of any direct or indirect financial or other private interest he/she has in such matters.

6.         Investments in Conflict with Official Duties

            An officer or employee shall not invest or hold any investment directly in any financial, business, commercial or other private transaction that creates a conflict with his/her official duties.

7.         Private Employment

            An officer or employee shall not engage in, solicit, negotiate for or promise to accept private interests when that employment or service creates a conflict with or impairs the proper discharge of his/her official duties.

8.         Future Employment

            An officer or employee shall not, after their termination of service or employment with the Fund, appear before the Fund or any panel or committee of the Fund, in relation to any case, proceeding, or application in which he/she personally participated during the period of his/her service or employment or that was under his/her active consideration.  This shall not bar or prevent the timely filing by a present or former officer or employee of any claim, account, demand or suit against the Fund on his/her own behalf or on behalf of any member of his/her family arising out of any personal injury or property damage or for any lawful benefit authorized or permitted by law.

9.         Family Members As Employees

            A member of the Board of Trustees who is an immediate family relative to an employee of the Fund must abstain from sitting in on any action directly relating to said employee, such as contract negotiation, or any act specifically involving said employee.

10.       Nepotism

            Relatives of the Board of Trustees are prohibited from being employed by the Fund. 

            The Fund has determined that it will be in its best interest to:

a.                   Avoid conflicts of interest between work-related and family-related obligations;

b.                  Reduce favoritism or even the appearance of favoritism; and

c.                   Prevent family conflicts from affecting the workplace.

d.                  The Fund will accept employment applications from all interested candidates.  However, relatives of a staff member may not be hired if any of the following job relationships would result:

i.                    A supervisor is related to a direct subordinate;

ii.                  The work of one relative is audited by another; and

iii.                Conflicts of interest exist between either the related persons or the related persons and the Fund or any of its vendors.

e.         A relative is defined as a father, mother, brother, sister, son, daughter, grandfather, grandmother, grandchild, first cousin, nephew, niece, step or in-law equivalents, spouse or domestic partner.

11.       Public Officers Law 74

            Section 74 of the Public Officers Law, which is entitled "Code of Ethics", establishes general standards of conduct for State officers and employees, which are designed to prevent a conflict between an employee's personal interests and his or her ability to properly discharge his or her official duties.  Any person who violates a provision of this law will be subject to disciplinary action as well as such other penalties as may be prescribed by law. 

12.       Public Officers Law 73

            Section 73 of the Public Officers Law specifically limits State officers and employees in the conduct of business and professional activities with or before State agencies during and after termination of State service.  The activities prohibited by law include:

a.                   The appearance or rendition of services in relation to any matter before a State agency, whereby the compensation therefore shall be contingent or dependent upon any action by the agency;

b.                  The appearance or rendition of services, for compensation in any form, against the interests of the State, in any matter before the Court of Claims;

c.                   The sale of goods or services having a value of more than $25 to the State, except pursuant to an award based upon competitive bidding;

d.                  The acceptance of a gift in any form having a value of more than $75, under circumstances in which it could be reasonably inferred that such gift was intended or could tend to influence an employee in the performance of his official duties. (See Section 1(a), above);

e.                   The receipt of compensation in any form for an appearance or rendition of services in relation to any matter before a State agency where such appearance or rendition of services is in connection with the following:

a.                   The purchase, sale, rental, lease of real property, goods or services from, to, or with any State agency;

b.                  Any proceeding relating to rate-making,

c.                   The adoption or repeal of any rule or regulation having the effect of law,

d.                  The obtaining of grants of money or loans,

e.                   Licensing, or

f.                   Any proceeding relating to a franchise provided for in Public Service Law.

13.       Subsequent Employment

            An individual who has left State service is prohibited from carrying on any business with or appearing before the agency by which he or she was employed for two years after resignation or termination.  The individual is permanently prohibited from carrying on any business with or appearing before any State agency in regard to matters with which he or she was involved while in State service. (See Section 8, above).

14.       Penalties

            Penalties for violating the law are severe. A person found to be in violation may be subject to a civil penalty of up to $10,000 or be found guilty of a class A misdemeanor.

            In addition to the statutory provisions referred to herein, rules and regulations may be adopted from time to time by the State Ethics Commission which will affect one's right to engage in outside employment. Should a fund officer or employee wish to engage in any form of outside employment, business or professional activity, it is essential that the matter be discussed with the entire Board of Trustees in order to ascertain whether or not the activity in which one wishes to participate is in violation of any law, rule or policy established by this Fund.  In any event, any outside employment or activity cannot be conducted during one's work hours nor can it be performed, at any time, on State property.

15.       Hatch Act

            Those State employees whose principal employment is in connection with an activity which is financed in whole or part by loans or grants made by the United States or a federal agency are also bound by the provisions of 5 USCA Sections 1501-1508, also known as the "Hatch Act".  This act prohibits such employees from serving as a candidate or campaigning in partisan elections.

16.       Distribution of Code of Ethics

            The executive Director shall cause a copy of the Funds Code of Ethics to be distributed to every officer and employee of the Fund.  Each officer and employee elected or appointed thereafter shall be furnished a copy before entering upon the duties of his/her office or employment.  In addition, the Executive Director shall ensure that a copy of Article 18 of the General Municipal Law shall be kept posted in any public building under the Fund's jurisdiction in a place conspicuous to the Fund's officers and employees.

17.       Penalties

            In addition to any penalty contained in any other provision of law, any person who shall knowingly and intentionally violate any of the provisions of the Board's Code of Ethics may be fined, suspended or removed from office of employment, as the cause may be, in the manner provided by law.

                     The Fund's Mission and Accomplishments - Spring 2008

The Fund's primary mission is to promote and preserve agriculture through the development of horse breeding throughout the State.  The breeding and racing industry in New York State has experienced a dramatic upturn since the State first passed legislation legalizing video lottery terminals (VLTs), in 2001.  Breeders have stepped up their purchases of both stallions and broodmares specifically for breeding in New York and participating in the New York Sire Stakes program.  Many former harness horse owners have re-entered the business as a result of higher overnight purses.  We note that many former breeders have started breeding horses again as well. Both breeders and owners are buying land and opening new harness horse facilities.

The most recent U.S. Department of Agriculture (USDA) inventory of light breed horses in New York reveals that the number and value of Standardbreds in the State has increased dramatically. Between 2000 and 2005 the Standardbred population in New York increased by 47 % from 11,500 to 16,900. During this period the total value of Standardbred horses increased 84% from $120.8 million to $221.9 million. The average value per horse increased from $10,500 to $13,100.

The USDA survey suggests that the New York State Standardbred population is currently approximately 16,900 horses. The value of the Standardbred breeding operation assets is $160 million and these farms spend $27 million annually on operating expenses.

2007 FUND ACHIEVEMENTS

The Agriculture and New York State Horse Breeding Development Fund, by law, supports several facets of standardbred breeding and racing in the state.  These important areas include:

FAIRS

During 2007 the Agriculture and New York State Horse Breeding Fund (the Fund) provided almost $132,000 to the 22 agricultural fairs that continue to conduct harness racing.  By law these funds must be used for maintenance, repairs and capital construction of racing and other fair facilities.  These renovation monies were in addition to $33,000 provided to administer the races and $420,000 in funding for purses contested for in the County Fair Division of the New York Sire Stakes Program.

The Fund provided maintenance and construction monies for the New York State Fair in Syracuse.  During August the Fund also provided $705,500 in purse money for the Fund’s annual state fair series, formerly raced at the New York State Exposition. This was a 5% increase over 2006.  In 2007 this series was again raced at Tioga Downs in Nichols, New York.  The series provides an important opportunity for horsemen to establish record times for their horses on a larger oval track.  The Fund’s State Fair program also gave horsemen the opportunity to show off their 3 year old horses at the traditional Fourth of July meet at the Goshen Historic Track in Goshen, New York. Horsemen at Goshen competed for a total of $ 255,000 in purse money during the two day meet.

EQUINE RESEARCH

The Harry M. Zweig Memorial Fund for Equine Research honors the late Dr. Harry Zweig, a distinguished veterinarian, and his numerous contributions to the state’s equine industry.  In 1979, by amendment to the pari-mutuel racing and wagering law, the New York State legislature created the Harry M. Zweig Memorial Fund for Equine Research to promote equine research at the Cornell University College of Veterinary Medicine.  The Harry M. Zweig Committee was established for the purpose of administering the fund and is composed of individuals in specified state agencies and equine industry positions and others who represent equine breeders, owners, trainers, and veterinarians.   The Fund contributed $299,245 in 2007 to the equine research fund for a variety of medical research including:  causes and possible cures for equine respiratory and influenza problems, embryonic stem cell research and mapping the horse genome. 

CONSULTING CONTRACTS

In 2007 the Fund entered into two contracts: Harness Horse Breeders of New York State; $194,900 for race advisory and consulting services and Wojeski and Company for auditing services in the amount of $7,250.

4-H CLUBS

The Fund contributed $50,000 for broad-based support to the statewide 4-H program centered at Cornell, helping to provide youngsters with educational opportunities and information on possible careers within the breeding and racing industries.

The dedicated staff and volunteers involved in this program expose young people to a variety of equine experiences.  These include tours of regional harness tracks, career exploration tours of racing and breeding facilities.  Monies from the Fund also help to underwrite costs associated with supplies and training for 4-H staff members.  This includes updating educational materials such as books, visual aids and videos. Distribution of the NYS 4-H Horse Program newsletter “Unbridled Thoughts” has been considerably strengthened since it was put on the website of the Cornell Department of Animal Science in 2005. The fund also partially funded a Standardbred Management Camp for youth at Camp Wyomoco in Varysburg, New York.

Standardbred day clinics are another popular feature of the statewide program.  Approximately 10 of these clinics are held at farms, county show grounds, local schools, or county fairs, while others culminate in a race track tour and a night at the races. 

Towards the end of the summer, the Fund also helps to support “The Kids and Horse Tent” at the State Fair at Syracuse.  This tent is managed by volunteers and staffed by 4-H youth.  Approximately 8,000 to 10,000 youth and adults visit the tent each year.

THE BREEDING SCENE

The New York breeding industry has been undergoing rapid growth.  This is directly related to the installation of video lottery terminals at racetracks and increased purses.  In 2007 the number of mares bred to New York stallions increased by 29% over 2006 from 1687 to 2173.   It should be noted that yearling nominations trail breeding by two years.  Interest in the program is expected to continue as better quality mares and stallions are drawn to the state by our very popular harness racing New York Sire Stakes program.