LAW No. 7291, of December 19, 1984 — Provides for equine breeding activities in the country.

The President of the Republic hereby announces that the National Congress decrees and I sanction the following Law:
TITLE I
Nature and Purpose
Article 1 – The Coordinating Commission for the Creation of the National Horse – CCCCN, a body directly subordinate to the Minister of State for Agriculture, is the organ responsible for the coordination, supervision and guidance of equine breeding activities in the country.
§ 1 – Activities related to equine breeding are understood to be:
a) national creation;
b) promotion, research, preservation of breeds and sanitary defense;
c) use of equines;
d) turf activities;
e) combating "doping";
f) slaughter of equines;
g) export and import.
§ 2 – To achieve its objectives, the Coordinating Commission for the Creation of the National Horse – CCCCN will seek the collaboration of federal, state and municipal government agencies, as well as private entities directly or indirectly committed to improving equine breeds, their use in various forms, and the preservation of breeds threatened with extinction.
TITLE II
National Creation
CHAPTER I
FROM CONCEPTUALIZATION
Article 2 – The breeding of equines in the National Territory includes measures deemed necessary for the development of agricultural, military and sporting activities, as well as those of interest to the national economy.
Sole paragraph – Measures to encourage agricultural activities, including financing and tax exemptions, will cover equines of any kind.
Article 3 – For the purposes of this Law, the following shall be considered:
a) service equine, that which is intended for rural and military work, transport and traction;
b) sport horse, any horse used in sporting competitions or practical demonstrations of equestrianism, not classified as horse racing;
(c) racehorse: an equine animal registered in the genealogical register of its respective breed and used in turf racing or another type of racing.
CHAPTER II
FROM THE GENEALOGICAL RECORD
Article 4 – The genealogical registration and zootechnical tests of equines will be carried out throughout the National Territory, in accordance with the guidelines established by the Secretariat of Animal Production of the Ministry of Agriculture, as per Law No. 4.716, of June 20, 1965, respecting the international recommendations that Brazil has signed or may sign.
CHAPTER III
FROM SANITARY DEFENSE
Article 5 – The Coordinating Commission for the Creation of the National Horse – CCCCN will provide technical support to the National Secretariat for Agricultural Defense of the Ministry of Agriculture and will provide financial resources, within its means, for the diagnosis, eradication, and control of diseases affecting equines.
TITLE III
Horse racing activity
CHAPTER I
HOW IT WORKS
Article 6 – The holding of horse races, with betting involved, is permitted in the country for the purpose of providing the resources necessary for the coordination and supervision of national equine breeding, through the Coordinating Commission for the Breeding of the National Horse – CCCCN.
Article 7 – Authorization for turf entities to operate betting operations, provided their technical and economic viability is verified, will be granted through a Patent Letter issued by the Coordinating Commission for the Breeding of the National Horse – CCCCN, along with the approval of the General Betting Plan.
Sole paragraph – The Coordinating Commission for the Creation of the National Horse – CCCCN may grant, on an experimental basis, for a period not exceeding 180 (one hundred and eighty) days, authorization for:
a) exploration of betting opportunities for new entities;
b) operation of betting modalities not included in the approved General Betting Plan.
CHAPTER II
ABOUT THE BETS
Article 8 – Bets on horse racing competitions may only be placed on the premises or premises of racetracks, at the headquarters or branch offices of horse racing entities, in agencies and through agents duly accredited by them.
Article 9 – Authorized turf entities may maintain agencies and agents, accredited through agreements with similar entities located in other States or Municipalities.
§ 1 – The agreements referred to in this article will come into effect after being approved by the Coordinating Commission for the Creation of the National Horse – CCCCN.
§ 2 – The offense arising from bets on horse races, as provided for in Article 50, § 3, subparagraph "b", of Decree-Law No. 3.688, of October 03, 1941, and in Article 6 of Decree-Law No. 6.259, of February 10, 1944, is not subject to bail.
CHAPTER III
Regarding the collection of funds by the organizations and their allocation.
Article 10 – At least 97% (ninety-seven percent) of the resources obtained from bets and other turf revenues of any nature, less labor charges, social security contributions and contributions due to the Coordinating Commission for the Breeding of the National Horse – CCCCN, will be used to cover expenses of tourist interest, considered as those that, in any way, relate to turf or racehorses in general, and at most 3% (three percent) will be used for the general expenses of turf entities.
§ 1 – The expenses and revenues referred to in this article will be detailed in an accounting plan approved by the Coordinating Commission for the Creation of the National Horse – CCCCN.
§ 2 – The turf entities shall submit annually to the Coordinating Commission for the Breeding of the National Horse – CCCCN, a report from a legally established auditing firm, certifying compliance with the provisions of this article.
Article 11 – Horse racing entities are subject to the monthly payment of a contribution to the Coordinating Commission for the Breeding of the National Horse – CCCCN, intended for its administration, the development of activities related to equine breeding in the country, and assistance to horse racing societies and entities, calculated on the total value of the general betting activity of the previous month, according to the following percentage table:
Average betting volume, per meeting, for the previous month.
PERCENTAGE
– from 1 (one) to 2.500 (two thousand five hundred) times the highest reference value Exempt
– from 2.501 (two thousand, five hundred and one) to 3.500 (three thousand and five hundred) times the highest reference value………………………………….0,5% (half a percent)
– from 3.501 (three thousand, five hundred and one) to 4.000 (four thousand) times the highest reference value…………………………………………….1,0% (one percent)
– above 4.000 (four thousand) times the highest reference value…………………………..1,5% (one and a half percent)
§ 1 – In calculating the contribution due to the Coordinating Commission for the Creation of the National Horse – CCCCN, based on the percentage table referred to in this article, any fraction lower than the highest reference value will be disregarded, so that the classification is made precisely within the percentages set for each rate.
§ 2 – The contribution shall be collected monthly at Banco do Brasil S/A, into the account of the Federal Agricultural Fund of the Ministry of Agriculture, by the 10th (tenth) day of each month following the month in question.
§ 3 – The contribution to the Coordinating Commission for the Creation of the National Horse – CCCCN, referred to in this article, and the contribution, as an employer, to the National Institute of Social Security, are the only tax, parafiscal, and social security charges that apply to turf entities.
CHAPTER IV
ABOUT THE AWARDS AND THEIR DISTRIBUTION
Article 12 – The turf entities, organized in accordance with this Law, shall distribute, semi-annually, for the payment of prizes due to the owners, breeders and turf professionals, related to the animals classified in each race, an amount never less than:
a) 10% (ten percent) of the total betting movement of the penultimate semester, if this was, on average, per meeting, equal to or greater than 4.000 (four thousand) times the highest reference value;
b) 5% (five percent) of the total betting movement of the penultimate semester, if this was, on average, per meeting, less than 4.000 (four thousand) and greater than 2.500 (two thousand five hundred) times the highest reference value;
c) 3% (three percent) of the total betting movement of the penultimate semester, if this was, on average, per meeting, equal to or less than 2.500 (two thousand five hundred) and greater than 600 (six hundred) times the highest reference value.
CHAPTER V
OF THE RESOURCES OF THE CCCCN
Article 13 – The application of resources received by the Coordinating Commission for the Creation of the National Horse – CCCCN, will be carried out through an annual plan, approved by the Minister of State for Agriculture, in the following proportions:
a) 60% (sixty percent) to the bodies of the Federal Administration responsible for the creation of the national horse, as well as, in the form of subsidies, to entities not part of the staff of that administration, engaged in the employment, promotion of the creation and improvement of the national equine, including the entities responsible for carrying out genealogical registration services of the various breeds existing in the Country;
b) 35% (thirty-five percent) in the form of aid granted to turf entities with betting volume, per meeting, less than 2.500 (two thousand five hundred) times the highest reference value in force in the Country;
c) 5% (five percent) in the form of aid intended exclusively for social assistance to turf professionals and employees of racetracks, betting agencies and development posts, as well as their dependents, through the respective turf entities and upon request from them to the Coordinating Commission for the Breeding of the National Horse – CCCCN.
§ 1 – The resources mentioned in item "a" of this article may also be used by the Coordinating Commission for the Creation of the National Horse – CCCCN in the organization or support of specific projects, congresses and other events, as well as in the granting of scholarships for the specialization of Veterinarians, Zootechnicians and Agricultural Engineers in the interest of national equine breeding.
§ 2 – The aid mentioned in subparagraph "b" of this article will be allocated to works at the racetrack and the granting of prizes, as well as other forms of incentive for the breeding of racehorses, through agreements with other private entities, upon request to the Coordinating Commission for the Breeding of the National Horse – CCCCN and deliberation by its Plenary.
§ 3 – Turf entities not covered by item "b" of this article may benefit from the aid granted, under the conditions established in the Regulations of this Law.
CHAPTER VI
OF "SWEEPSTAKES" AND OTHER LOTTERY MODALITIES
Article 14 – Entities promoting horse races with betting operations may be authorized by the Ministry of Finance to conduct "sweepstakes" and other forms of lottery, provided they meet the requirements stipulated by the Federal Revenue Service regarding Lottery Plans.
Sole paragraph – The Regulations of the Lottery Plans for lottery game modalities, including horse races not included in the general betting activity of racetracks, must stipulate the percentage due to the Coordinating Commission for the Breeding of the National Horse – CCCCN.
CHAPTER VII
FROM THE GROUP
Article 15 – The grouping of horses in races will be done according to the criteria established in the regulations of this Law.
CHAPTER VIII
FROM THE NATIONAL RACING CODE
Article 16 – The organization and judging of horse races will be governed by a National Racing Code, drawn up by the Coordinating Commission for the breeding of the National Horse – CCCCN.
Sole paragraph – Turf organizations may prepare an appendix to the National Racing Code, detailing specific considerations relevant to their particular case, which will be forwarded to the National Horse Breeding Coordinating Committee – CCCCN, for approval.
TITLE IV
DOPING
Article 17 – The Coordinating Committee for the Creation of the National Horse – CCCCN will be responsible for establishing rules on combating "doping," aiming to prevent the administration of physical or chemical agents, stimulants or depressants, that may alter the normal performance of the horse in any type of competition.
TITLE V
FROM SLAUGHTER
Article 18 – The slaughter of equines for industrial and commercial purposes may only be carried out in establishments under Federal Inspection.
Sole paragraph – In the event of the species being at risk of extinction, the Coordinating Commission for the Breeding of the National Horse – CCCCN, through a legal instrument, will limit the culling of equines, aiming to protect equine and asinine herds.
Article 19 – It is the responsibility of the State and Territorial Governments to oversee compliance with the provisions of the preceding article, outside of establishments under Federal Inspection.
TITLE VI
Export and Import
Article 20 – The importation of equines will be permitted with the objective of qualitatively improving the existing herds in the country, ensuring the protection of the herds against zoonoses.
§ 1 – The export of horses imported for breeding purposes is prohibited, except when they have remained in the country as breeding stock for a minimum period of 3 (three) consecutive years.
§ 2 – Equines imported on a temporary basis for participation in turf, equestrian and polo competitions, exhibitions and fairs, and circus performances, shall leave the country within a maximum period of 60 (sixty) days, counted from the end of the respective event, with the option of permanent stay in the country, through a regular import process.
Article 21 – The Coordinating Commission for the Creation of the National Horse – CCCCN will issue technical and regulatory instructions governing the export and import of equines of different breeds and species, considering, in any case, the national interest and respecting the provisions applicable to foreign trade.
TITLE VII
Penalties
Article 22 – Infractions of the provisions of this Law, as well as its Regulations, ascertained in administrative proceedings, will be punished with the following penalties, applied by the Coordinating Commission for the Creation of the National Horse – CCCCN:
a) warning;
b) a fine of 10 (ten) to 1.000 (one thousand) times the highest reference value, doubled in case of recurrence;
c) Revocation of the operating license.
§ 1 – The fine may be applied alone or cumulatively with other penalties.
§ 2 – Penalties will be applied in accordance with the nature of the infraction, its aggravating circumstances, and the offender's record, with the right of appeal to the Minister of State for Agriculture.
Article 23 – The fine referred to in subparagraph "b" of the preceding article shall be collected in accordance with the provisions of Article 11, § 2, of this Law.
TITLE VIII
Final and Transitional Provisions
Article 24 – The Executive Branch shall issue the Regulations for this Law within 90 (ninety) days.
Article 25 – This Law shall enter into force on the date of its publication.
Article 26 – Law No. 5.971, of December 11, 1973, and other conflicting provisions are hereby repealed.
Brasilia, December 19, 1984; 163rd year of Independence and 96th year of the Republic.
JOÃO FIGUEIREDO
Nestor Jost