(No. 37) (Approved January 20, 2000) AN ACT

(H. B. 843) (No. 37) (Approved January 20, 2000) AN ACT To amend Sections 2, 3, 4; subsection 7 of Section 5; subsections 2, 5, 6, and 7 of Section 6; Sections 7, 8, 9, 10, 12, 13; and add two new Sections 14 and 15 to Act No. 169 of August 11, 1988, known as the Puerto Rican Purebred Paso Fino Horse Agro-Industry Act, in order to specify the significance and scope of the Puerto Rican Paso Fino equine breed; redefine and add new concepts; provide incentives for the establishing of rinks for the training of horses and the regulated holding of competitions, exhibitions, and shows, at local and international levels, and attach the Regulations Office created by Act No. 169, supra, to the Puerto Rico Agriculture and Livestock Industry Regulating Office, as provided by Act No. 238 of September 18, 1996; and for other purposes. STATEMENT OF MOTIVES The Purebred Paso Fino Horse is autochthonous to Puerto Rico, which has thus been ratified in numerous writings by people deemed to be authorities in the matter. Act No. 87 of June 30, 1978 declared Paso Fino Horses Sport an Autochthonous Sport of Puerto Rico, recognizing the fact that our Paso Fino horse is unique in the world and is autochthonous to our Island. Likewise, Act No. 169 of August 11, 1988, known as the Puerto Rican Purebred Paso Fino Horse Agro-Industry Act, created the Puerto Rican Purebred Paso Fino Horse Regulations Office as a branch of the

Department of Agriculture, and established a Central Genealogical Register for the registration and identification of Paso Fino Horses. However, Act No. 169, supra, is addressed mainly to the adoption of techniques that will guarantee a good source of Paso Fino Horses for commercial purposes in local and foreign markets. Said Act does not include areas such as competitions, exhibitions, and shows, at the local level as well as internationally, which are acts that emphasize the worth of these horses, as well as the prizes that they may obtain from such activities in a variety of Paso Fino categories, would increment their value even more in the different local and foreign markets. Therefore, it is necessary to extend the scope of said Act to the effect that it will include all aspects related to the Puerto Rican Purebred Paso Fino Horse Agro-Industry. Furthermore, with the approval of Act No. 238 of September 18, 1996, effective on January 1, 1997, the Puerto Rico Agriculture and Livestock Industry Regulating Office was created, attached to the Department of Agriculture. The effectiveness of this Act facilitates the organized consolidation of different agricultural and livestock industries of the Island, for a better planning and marketing of its agricultural products. Each sector or group of sectors of these industries is called on to create a fund to promote the development of the production and the marketing of their products, while retaining the power to adopt their own regulations and establish the internal procedures it deems are necessary for its proper functioning. Section 12, Act No. 238, supra, provides that the Puerto Rico Agriculture and Livestock Industry Regulations Office, as well as other similar offices, shall be attached to the Regulating Office created by the above cited Act.

Therefore, it is also necessary to reconcile the Act that creates the Puerto Rican Purebred Paso Fino Horse Agro-Industry Office, with the Agriculture and Livestock Industry Regulating Act. BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO: Section 1.- Section 2 of Act No. 169 of August 11, 1988, is hereby amended to read as follows: Section 2.- Definitions. For the purposes of this Act, the following terms and phrases shall have the meaning set forth below: 1. Department - Shall mean the Department of Agriculture of the Commonwealth of Puerto Rico. 2. Secretary - Shall mean the Secretary of the Department of Agriculture of Puerto Rico. 3. Regulating Office - Shall mean the Puerto Rico Agriculture and Livestock Industry Regulating Office, created by virtue of Act No. 218 of September 18, 1996 1. 4. Regulator - Shall mean the official designated by the Secretary of Agriculture to develop the regulation of the agriculture and livestock industries, pursuant to the provisions of Act No. 238 of September 18, 1996. 5. Office - Shall mean the branch of the Department, denominated as the Puerto Rican Purebred Paso Fino Horse Agro-Industry Regulations Office, which is established in Section 3 of this Act, with the purpose of promoting programs, activities, and services to propitiate the development and bolstering of the Puerto Rican Purebred Paso Fino Horse Industry, among others. The Director 1 The original text should have cited Act No. 238 of September 18, 1996.

of this Office shall be governed by the public policy established through Act No. 238 of September 18, 1996, and in accordance with it, the Regulating Office shall be attached to the Puerto Rico Agriculture and Livestock Industry Regulating Office. 6. Director - Shall mean the executive official who is responsible for directing and administrating the Puerto Rican Purebred Paso Fino Horse Agro-Industry Regulations Office created by this Act. 7. Puerto Rican Purebred Paso Fino Horse - Shall mean every horse that, when observed, moves forward in a four seat lateral gait that is characteristic of this breed. Its forward gait has a spirited movement, lifting the hooves only a few inches (not more than 6 inches from the ground) with a wrist-like movement of the fetlock. Its movements reflect assertiveness in its performance, as well as daintiness in its step. Its stride is short, but the movement of its legs are very speedy. The horse maintains these characteristics throughout the entire performance, and in most cases, its natural gait is evident from the moment it takes its first steps after being born. The Paso Fino Horse refers only to the individual animals that belong to this breed that are only descendants of the progenitor Sire of Sires, known as Dulce Sueño. It must also have a traceable lineage of horses inscribable in the Central Genealogical Register of the Government of Puerto Rico, of at least three generations of this Breed that may be determined, and shall apply to the horses that constitute the progeny of ancestors known and registered in the Central Genealogical Register of the Government of Puerto Rico, and that all the immediate genealogy of Puerto Rican Purebred Paso Fino ancestors of both sides of the individual to be registered

can be determined. The Department of Agriculture shall deny the license or certificate of registry as a Purebred Paso Fino Horse, if it is established that the ancestors of the individuals to be registered are of foreign, unregistered, or doubtful origin, or to any other weighty reason. The terms pure Paso Fino, Puerto Rican Paso Fino Breed, Puerto Rican Horse Breed, Classic Paso Fino, and Traditional Paso Fino, shall all mean the same thing. 8. Foreign Horses - Any horse born in Puerto Rico or outside of Puerto Rico, that does not descend from the lines of recognized Puerto Rican Purebred Paso Fino Horses. These horses cannot be registered in the Central Genealogical Register of the Government of Puerto Rico. This is so, due to the confusion that exists between our Breed and that of other equine breeds of America. Colombian Horses are not recognized by the Government of Puerto Rico as a breed. To recognize that breed of Pacers as Paso Fino is a mistake since it does not invariably transmit to its descendants the main characteristics of the breed that makes it a Paso Fino by definition. In America, the organizations that promote the mixing of horse breeds in their competitions, classify them by modalities or pacing gaits as known in equine jargon. 9. Pacers - Every other horse that descends from any of the other recognized breeds of saddle horses born in Puerto Rico or abroad. 10. Native Horse - Every horse that is not registered in any organization, and whose genealogy cannot be determined in the Central Genealogical Register. They shall also be known as Criollo Horses.

11. Puerto Rican Purebred Paso Fino Competition - All those national or international competitions, tournaments, shows, exhibitions, etc. held in Puerto Rico, in which all the participating horses descend from the same Paso Fino Breed bloodlines, and are registered in the Central Genealogical Register. 12. Central Genealogical Register - Is the Puerto Rican Purebred Paso Fino Breed Register which contains the names, color, description, owners, and other information of the animals that are members of the Puerto Rican Paso Fino Breed. 13. Pacing Competitions - Are all those national or international competitions held in Puerto Rico, in which several populations of Pacing Horses compete, or those that are classified by gait, pace, or type of pace. In the events known as Puerto Rican Purebred Paso Fino, only those registered in the Central Genealogical Register may compete. 14. Pacing or Ambling Horses - Every horse that moves forward in perfect two-beats lateral bipedal movements. 15. Trotting Horses - Every horse that projects a natural two beat gait in which the horse steps simultaneously on the right forefoot and on the diagonal left hind foot, and after pausing steps subsequently on the left forefoot and right hind foot. 16. Puerto Rican Paso Fino Horse - Shall only mean any horse, sire, gelding, colt, mare or filly, or foal of either sex, registered as a Paso Fino of Puerto Rican bloodlines in the Central Genealogical Register of the Government of Puerto Rico, that meets the specific characteristics of its breed.

17. Breeder - Shall mean every individual or corporation that is wholly or partially engaged in the breeding of Puerto Rican Paso Fino horses, whether for sale, or to dispose of them in any other legal manner in or outside Puerto Rico. The terms breeder and farmer-breeder shall be synonymous. 18. Owner or Owner s Agent of a Puerto Rican Purebred Paso Fino Stud - Shall mean the owner or owner s agent of a Purebred Puerto Rican Paso Fino stud who provides, with or without remuneration, the services of a Purebred Paso Fino stud to sire or serve Purebred Paso Fino mares. As established in the regulations to these effects, the owner must present evidence that the breeding is carried out in the manner provided by the Office for those purposes. 19. Puerto Rican Purebred Paso Fino Sire, or Puerto Rican Purebred Paso Fino Stallion - Shall mean any male Paso Fino Horse used, with or without remuneration, to sire or serve Puerto Rican Purebred Paso Fino mares or fillies, which must be registered in the C.G.R. and meet the requirements of the Puerto Rican Purebred Paso Fino Race. According to regulations established to these effects, its genetic code must be registered in the Office, through DNA tests, genetic filiation verification, or any other test that substantiates its genealogy. 20. Local Competitions - Every competition in which local or unregistered horses compete. They may also be known as Criollo Horse competitions. These competitions shall not be advertised as competitions of Puerto Rican Paso Fino Horses, if carried out in the same competition, with horses that are not

registered in the Central Genealogical Register, for the Paso Fino events in Competition. Section 2.- Section 3 of Act No. 169 of August 11, 1988, is hereby amended, to read as follows: Section 3.- Puerto Rican Purebred Paso Fino Horse Agro-Industry Regulating Office. The Puerto Rican Purebred Paso Fino Horse Agro-Industry Regulating Office is hereby created as a branch of the Department of Agriculture. Provided, that said office shall be attached to the Puerto Rico Agriculture and Livestock Industry Regulating Office, as established in Act No. 238 of September 18, 1996, and shall have the following functions and responsibilities among any others provided in this Act: 1. To serve as the coordinating entity between the breeders, the Paso Fino Organizations, and the Regulating Office, through the Regulator designated by the Secretary, as well as between the different branches and programs of the Department of Agriculture. In the performance of said function, the Office shall make recommendations to the Secretary of Agriculture and to said Regulator in order to: (a) Promote the production and preparation for marketing of high quality Puerto Rican Purebred Paso Fino Horses, as well as their unlimited sale in Puerto Rico and abroad. (b) Ascertain that the agricultural activity related to the breeding of Puerto Rican Purebred Paso Fino Horses is developed to optimum capacity, and in the manner that is most efficient and integrated to the rest of the

components of the agriculture and livestock industries, to ensure a sufficient stock of good Puerto Rican Purebred Paso Fino Horses for United States market and that of other foreign countries. (c) Offer breeders technical advisory services in the areas of mating, breeding, taming, training, sales, and marketing, as well as management practices of stables. (d) Approach and obtain financial aid from authorized public agencies, through loans with reasonable interest rates and guarantees for the breeders, and to establish incentives programs, subsidies, or any other type of financial aid programs for their benefit, including the purchase of brood mares, consumer goods, gear, equipment, as well as the establishing of exercise rings for the training of Purebred Paso Fino Horses, and for the holding of competitions, exhibitions, and showings of these horses at both local and international levels. (e) Promote the creation of sources of employment in the Puerto Rican Purebred Paso Fino Horse industry, through education and work programs sponsored by government agencies and private entities. The different positions that may be filled through these programs, include riders, farriers, trainers, veterinary assistants, stable hands, and others. 2. Study the possibilities of exporting Puerto Rican Purebred Paso Fino Horses to foreign markets.

3. Perform studies on the condition of the Puerto Rican Purebred Paso Fino Horse industry in order to compile the necessary information to be used as a basis for the approval or revision of the regulations that are approved according to what is provided herein, including the adoption of regulations to hold local and international Purebred Paso Fino Horse competitions, and ensure that the ends and purposes of this Act are met. 4. Accept donations or funds from the Government of Puerto Rico and its agencies, as well as from the Government of the United States and its agencies, public corporations or instrumentalities, or any private entity or organization, to carry out its purposes and activities. 5. Compile, interpret, and periodically publish statistical data on the performance of the Puerto Rican Purebred Paso Fino Horse industry, its distribution, export data, and any other information deemed adequate for the evaluation of the public policy established in this Act, and to create a register of breeding stock, studs, and others. 6. Ascertain that all breeders or stables comply with the provisions of the Act and have all the operating permits and other documentation required by the Regulating Office. 7. Certify the Stables, Corporations and/or Breeders that qualify to be deemed Bona fide Farmers, before being approved as such by the Secretary, pursuant to the scope and specifications of this Act. 8. Organize the incorporation of a permanent exhibition gallery of Purebred Paso Fino Horses within the Agricultural Museum

of Puerto Rico. Compile the necessary information to create a library, historical archive, film library, video library, and monuments that extol the Puerto Rican Paso Fino Breed. 9. Adopt measures to protect the Autochthonous Breed, according to the provisions and scope of this Act. 10. Fortify the Central Genealogical Register through an Advanced Computer System and impose penalties to those who, through fraud or deception, attempt to, or succeed in registering horses that do not have the needed qualifications to be registered in said register. The pedigree verification test shall be compulsory for every horse whose admission to the Central Genealogical Register is requested. 11. Establish the Puerto Rican Paso Fino Breed Official Register of Sires. Every stud must have genetic filiation test. 12. Create and provide incentive for Programs for Artificial Insemination and Transfer of Embryos. 13. Establish and safeguard a Sperm Bank to guarantee the continuance of the Breed, and use it as an incentive to improve the breed. 14. Create a Bank of Hair Tests to verify parentage through DNA tests of each individual and guarantee the line of descent of the animal. Previously performed blood tests shall be admitted for filing. 15. Take a census of the number of Puerto Rican Purebred Paso Fino Horses that exist, and are born each year in and outside Puerto Rico, in order to have precise statistics and know the

extent of the Industry and the economic impact that it has in Puerto Rico. 16. Establish a School of Professionals devoted to the breeding, care, training, riding, and other tasks related to the industry. 17. Establish a uniform system of marking animals for their identification. 18. Establish a publicity and intercommunication plan with all the equine entities and international governments of the world. 19. Promote and sell the image of our Paso Fino Horse at an international level. Have adequate representation, whether through videos, photos, posters and, if possible, the very presence of our horses in expositions, fairs, and international equine events. 20. Encourage the establishment of exercise rings for the training of horses and to hold competitions, exhibitions, and showings, locally as well as internationally. 21. Develop a program of incentives directed at preserving the Puerto Rican Paso Fino Breed. Only the breeders that are certified by the Office shall be able to receive incentives to such effects. 22. Establish through regulations to such effects, an amount of money to be collected for the permits, certifications, and services that are offered pursuant to this Act. 23. Carry out all the activities, agreements, and programs that are appropriate and necessary to comply with the purposes of this Act.

Section 3.- Section 4 of Act No. 169 of August 11, 1988, is hereby amended to read as follows: Section 4.- Appointment of the Director The Office shall be administered by an Executive Director appointed by the Secretary, under whose volition he shall perform his duties, and who shall be a person of recognized competence, moral probity, and experience in the breeding and marketing phase of Puerto Rican Purebred Paso Fino Horses. The Director shall not have any financial interest whatsoever in agricultural activities related to the breeding, training, sale, marketing, stable management, competitions, or any other activity pertaining to this industry s competitions during his term, and up to two (2) years after having ceased in his office. However, the Director shall automatically become a member of the Board of the Sector Attached to the Regulating Office for two (2) years subsequent to the moment he vacates his position, with the purpose of advising the Board and lending continuity to the operation of the Office. The Director shall perform those functions, powers, and duties that are delegated on him by the Secretary, who shall fix his remuneration at a par with that received by officials of the same or similar nature and responsibilities in the Department of Agriculture. Section 4.- Subsection 7 of Section 5 of Act No. 169 of August 11, 1988, is hereby amended, to read as follows: Section 5.- Functions of the Director.... 1....

7. To study the conditions of the Puerto Rican Purebred Paso Fino Horse Industry. 10.... Section 5.- Subsections 2, 5, 6, and 7 of Section 6 of Act No. 169 of August 11, 1988, are hereby amended, to read as follows: Section 6.- Powers of the Director.... 1.... 2. Inspect any stable, breeding farm, animal, material, equipment, product, artifact, vehicle, record, book, document, or printed material in any investigation on any aspect of the agricultural activity of the Puerto Rican Purebred Paso Fino Horse Industry that is conducted pursuant to the purposes and provisions of this Act.... 5. Preside over the public hearings regarding the regulations to be adopted for the celebration of local and international Puerto Rican Purebred Paso Fino Horse competitions, or any equine or sports activity in which there are Puerto Rican Purebred Paso Fino Horse events, or their exhibitions. Only Puerto Rican Purebred Paso Fino horses that are duly registered in the Central Genealogical Register shall be permitted to represent Puerto Rico. Once the hearings are concluded, he shall submit the proposed Regulations to the consideration of the Administrative Board, for approval. 6. Render to the Governor and the Legislature, no later than the second week of January of each year, and through the Regulator

designated by the Secretary, a complete and detailed report of all the activities of the Office, its achievements, programs, incentives, subsidies, assistance, and training offered by said office, the funds from different sources that were assigned, procured or administered by the Office during the corresponding report year, their disbursement, and on any remaining funds. 7. He shall automatically become the Sub-Regulator of the Industry. Section 6.- Section 7 of Act No. 169 of August 11, 1988, is hereby amended, to read as follows: Section 7.- Regulations The Secretary shall adopt the regulations needed for the implementation of this Act, with the exception of the provisions that govern the internal organization of the Office and those related to the powers conferred to its Administrative Board, as indicated in Section 13 of this Act. Such rules and regulations shall be adopted and promulgated pursuant to Act No. 170 of August 12, 1988, as amended, known as the Commonwealth of Puerto Rico Uniform Administrative Procedures Act. Section 7.- Section 8 of Act No. 169 of August 11, 1988 is hereby amended, to read as follows: Section 8.- Puerto Rican Purebred Paso Fino Central Genealogical Register.- The Department of Agriculture shall establish a Central Genealogical Register of Puerto Rican Purebred Paso Fino Horses, which shall cover the areas of identification of the Purebred Paso Fino Horses, mating tests, blood tests, birth date, registration date, markings, owners of the horse and,

its sire and dam, method of certifying registrations, and any other matter of relevance to achieve the purposes of this Act. The Department shall adopt said Register through regulation to such effects, which shall include the fees that shall be charged for registration therein, and for the certificates that are issued. As means of transition, during the first six (6) months following the effective date of this Act, the Secretary, through regulations to such effect, may accept the registration in the Central Genealogical Register of every horse association 2, which groups owners of Paso Fino Horses, provided that said association has previously published said register, and if the register meets the requirement established in the definition of Puerto Rican Purebred Paso Fino Horse included in Section 2 of this Act. It shall be the duty of the Secretary to review the registrations made under this transitional clause within the unpostponable term of one year from the effective date of this Act, and to adopt and modify the regulations related to the Central Genealogical Register, as deemed necessary, pursuant to the objectives and provisions of this Act, and to take the corresponding actions. The Administrative Board shall establish, by regulations, the reason to reject the registration of a horse in the Central Genealogical Register. The party involved may request the reconsideration of the decision, using the procedure established in Section 9 of this Act. No horse shall be classified or advertised as a Puerto Rican Paso Fino Horse unless it is duly registered as such in the Central Genealogical Register. 2 Translator s note: Translator suspects that there is a mistake in the original text at this point in the sentence.

The Secretary shall also establish a Register of Puerto Rican Purebred Paso Fino Sires, regulating its use through the requirement of mating records, blood tests, and any other standards that are deemed necessary to achieve the purposes of this Act. Section 8.- Section 9 of Act No. 169 of August 11, 1988, is hereby amended to read as follows: Section 9.- Review of resolution, decision, or partial or final order of the Director, the Secretary, or the Administrative Board before the Circuit Court of Appeals and the Supreme Court. 1. Any party adversely affected by a final resolution, decision, or partial order of the Secretary or the Director or the Administrative Board may request a reconsideration before the official who made the decision within the term of thirty (30) days after having received notice of said resolution, order or decision. 2. The filing of a petition for reconsideration shall not exempt any person from complying with or obeying any resolution, decision or partial or final order issued pursuant to this Act. The petition for reconsideration shall not operate in any way as a suspension or postponement of the effectiveness of the resolution, order or decision, unless there is a special order from the official who made the decision, at the request of the party. The petition for reconsideration shall specifically state the grounds on which it is based. The official before whom the reconsideration is requested must issue his or her grounded decision within a term of fifteen (15) days from the date the petition was filed. If he or she rejects it outright or does not act

within the stated fifteen (15) days, the term to request the revision shall begin to elapse anew from the moment the refusal was notified, or when the fifteen (15) days expire, as the case may be, in which case the person who wishes to request a reconsideration shall have thirty (30) days to request it anew. On the other hand, the official to whom said reconsideration is addressed shall have fifteen (15) days to issue a well grounded decision. 3. If a decision were made in reconsideration, the term to request a review thereof shall begin to run on the date a copy of the notification of the agency s resolution is filed in the record, solving the motion for reconsideration, in which case the agency, on the same day that said action is taken, shall notify the party interested in promoting the of reconsideration. In said case, the petitioner for the revision of the reconsideration shall have twenty (20) days from said moment to request it. Such resolution shall be issued and filed within ninety (90) days from the filing of the motion to reconsider. If the agency does not make a decision regarding the petition for the revision of the reconsideration within period of sixty (60) days after its filing, or if it accepts the motion for reconsideration after a second attempt for said purposes but fails to act with regard to the motion within ninety (90) days of its filing, or if it rejects the motion for reconsideration after a second request to such ends, it shall lose jurisdiction thereof, and the term to request the revision through a court action shall begin to count following the expiration of said term of sixty (60) days or ninety (90)

days, as the case may be, unless the agency, for just cause and in said period of time, extends the term to solve the matter for a period that shall not exceed thirty (30) additional days. In case of a rejection of the motions for reconsideration, the additional period of extension shall not be applicable, thus the agency shall only have the period of ninety (90) days to reject motions for reconsideration. 4. The filing of the appeal for review of any resolution, order, or decision shall not stay the effects of such resolution, order, or decision, unless the Court orders it, at the request of the interested party, upon a hearing and the finding that the party against whom said resolution, order, or decision has been issued, would suffer grave or irreparable harm if such suspension is not granted. The resolution issued by the Court to this effect must state the provisional remedies that are deemed reasonable to respond for the damages that could be caused by the suspension of the execution of the resolution, order, or decision. 5. A party that is adversely affected by a final order or resolution of an agency, and that has exhausted all the remedies provided by the agency or the corresponding administrative appellate body, may file a request for review before the Circuit Court of Appeals, within a term of thirty (30) days, counted from the date the copy of the notice of the agency s final order or resolution was filed, and once the agency notifies the party involved of said action, or from the applicable date as provided in Section 3.15 of Act No. 170 of August 12, 1988 as amended,

known as the Commonwealth of Puerto Rico Uniform Administrative Procedures Act, when the term to request the judicial review has been interrupted by the timely filing of a motion for reconsideration. The party shall notify the filing of the request for review to the agency and to all the parties within the term to request said review. The notice must be made in writing and may be served by certified mail. 6. Any party adversely affected by the decision of the Circuit Court of Appeals may request its review by filing a writ of certiorari before the Supreme Court within the jurisdictional term of thirty (30) days from the filing of the decision of the Circuit Court of Appeals or of its resolution resolving a duly filed motion for reconsideration. Section 9.- Section 10 of Act No. 169 of August 11, 1988, is hereby amended to read as follows: Section 10.- Violations and penalties. Any person who violates the provisions of this Act, the regulations adopted by virtue thereof, or any order or resolution of the Secretary issued under this Act, shall incur a misdemeanor, and upon conviction, shall be punished by a fine of not less than one hundred (100) dollars nor more than five hundred (500) dollars. Subsequent violations shall be punished by a minimum penalty of three hundred (300) dollars, but not more than five hundred (500) dollars, or imprisonment for a term of six (6) months, or both penalties at the discretion of the Court. Once established the Administrative Board, may impose fines as provided in Act No. 238 of September 18, 1996.

Section 10.- Section 12 of Act No. 169 of August 11, 1988, is hereby amended to read as follows: Section 12.- Fund for the Development of the Puerto Rican Purebred Paso Fino Horse Agro-Industry; Creation, Purposes, and Administration. Act No. 238 of September 18, 1996, creates in Section 7, the economic instrument or mechanism to promote the development of the production and marketing of the products of the various agricultural entities grouped and identified by sectors or groups of sectors. The Fund thus created shall be nurtured by the contributions of the different components of the sectors that make up the Puerto Rican Purebred Paso Fino Horse Agro-Industry, as well as from any other financial source that joins the fund through its members or by charging for services rendered by the Regulations Office. Furthermore, the funds needed to carry out the purposes of this Act shall be consigned annually in the Joint Resolution of the General Expenses Budget of the Department of Agriculture of Puerto Rico. The Office shall create a fund to promote the Development and Promotion of the Puerto Rican Purebred Paso Fino Horse Agro-Industry. This fund shall receive every budget assignment, as well as from other sources, such as: imposts or charges for the granting of licenses to breeders, trainers, and owners of purebred horses, and charges for performing hair tests to guarantee the animal s origin. Said fund may also be funded from the contributions of the components of the sector or groups of sectors. The amount of the contributions shall be determined by the Administrative Board, after consulting its components, pursuant to Act No. 238 of September 18, 1996.

All the moneys of the fund shall be deposited in the banking institutions determined by the Director of the Office, but they shall be recognized as depositaries for the funds of the Government of Puerto Rico, but shall be kept in accounts or accounts registered in the name of the Fund. The collections and disbursements shall be made pursuant to the regulations adopted by the Administrative Board in accord with the Department of the Treasury. The Board may appoint and contract the needed personnel to comply with the purposes of this Act, without being subject to Act No. 5 of October 14, 1975 as amended, and may contract the purchase and sale of goods and services without being subject to Act No. 96 of June 24, 1954, being governed in the performance of its functions by the normal business practices of private industry. The fund shall be used to promote the development of the production and marketing of its products. It shall be used to advance the development of the Industry, by promoting the production, sale, and marketability of Puerto Rican Purebred Paso Fino horses and every effort needed for its development. Section 11.- Section 13 of Act No. 169 of August 11, 1988, is hereby amended to read as follows: Section 13.- Administrative Board: An Administrative Board shall be appointed to manage the special fund of the Office. It shall be made up by representatives of the different sectors of the Puerto Rican Purebred Paso Fino Horse Agro-Industry, as established by Act No. 230 of September 1996, and a representative of the Tourism Company, the Economic Development Bank, the Agricultural Extension Service, the Mayagüez University Campus (RUM, in Spanish),

the University of Puerto Rico, the Sports and Recreation Department, and the Institute of Puerto Rican Culture. A. The Administrative Board shall be composed up, in addition to the aforementioned officials, by a minimum of one (1) representative from each of the sectors included in the Puerto Rican Purebred Paso Fino Horse Agro-Industry. Said members must have no less than three (3) years of experience in the sector for which they are elected. The representatives shall be designated through a selection in an assembly convened by the Regulator. B. The designation of the members of the Administrative Board shall be made within thirty (30) days following the approval of this Act. The term of their designation shall be staggered for a maximum period of two (2) years. C. The Board, in coordination with the Regulator of the Agriculture and Livestock Industries, shall consult with the sectors of the Puerto Rican Purebred Paso Fino Horse Agro- Industry regarding the regulating process to be followed. D. The Administrative Board, pursuant to the public policy of the Government, shall have the power to order and arrange all the phases of the Puerto Rican Purebred Paso Fino Horse Agro- Industry, in the areas of production, promotion, purchase and sale, marketing, regulation of competitions, among others. Said powers of the Administrative Board shall be exercised pursuant to the provisions of Act No. 170 of August 12, 1988 as amended, known as the Uniform Administrative Procedures Act.

E. The Administrative Board may be convened by the Secretary, the Regulator, the sub-regulator, or on its own initiative, to attend to any matter related to the Puerto Rican Purebred Paso Fino Horse Agro-Industry; provided, that the periodicity of the meetings of said board shall never be greater than thirty (30) days. The Administrative Board shall act as the Administrative Board of the Fund established by this Act for the exclusive use of the Puerto Rican Purebred Paso Fino Horse Agro-Industry. When the situation of the sector or group of sectors of said agro-industry and the economic condition of the Fund merits it, the Board shall request the Regulator of the Agriculture and Livestock Industry to vary the amount of the contribution of each sector. If the Agriculture and Livestock Industry Regulator deems necessary to vary the contribution, he/she shall hold public hearings for said purpose and announce the date they shall be held, no less than ten (10) days before the selected date, in a period (sic) (newspaper) of general circulation, pursuant to the procedure established by Act No. 238 of September 18, 1996, and shall have the authorization of the Administrative Board of the Puerto Rican Purebred Paso Fino Horse Agro-Industry Development Fund for said action. Section 12.- A new Section 14 is hereby added to Act No. 169 of August 11, 1988, to read as follows: Section 14.- Internal Procedures of the Administrative Boards: a) The Administrative Boards shall have powers to approve their own regulations and establish the internal procedures needed for their adequate operation. Said regulations shall be promulgated

according to the provisions 3 of Act No. 170 of August 12, 1988, as amended, known as the Uniform Administrative Procedures Act. b) The Boards shall submit a report of their activities during the previous fiscal year to the Secretary, including information, data, and recommendations related to issues dealt with in this Act. Section 13.- A new Section 15 is added to Act No. 169 of August 11, 1988, to read as follows: Section 15.- Effectiveness This Act shall take effect immediately after its approval. Section 14.- This Act shall take effect immediately after its approval. 3 Translator s note: The words de acuerdo a las disposiciones appear twice in a row in the original. Translator suspects this to be a typo and has translated the text accordingly.

CERTIFICATION I hereby certify to the Secretary of State that the following Act No. 37 (H.B. 843) of the 3 rd Special Session of the 13 th Legislature of Puerto Rico: AN ACT to amend Sections 2, 3, 4; subsection 7 of Section 5; subsections 2, 5, 6, and 7 of Section 6; Sections 7, 8, 9, 10, 12, 13; and add two new Sections 14 and 15 to Act No. 169 of August 11, 1988, known as the Puerto Rican Purebred Paso Fino Horse Agro-Industry Act, in order to specify the significance and scope of the Puerto Rican Paso Fino equine breed; redefine and add new concepts; provide incentives for the establishing of rinks for the training of horses and the regulated holding of competitions, exhibitions, and shows, etc., has been translated from Spanish to English and that the English version is correct. In San Juan, Puerto Rico, today 19 th of June of 2003. Elba Rosa Rodríguez-Fuentes Director