Article 1.　A Special Account shall be established for managing annual revenues and expenditures of the state-operated horse racing under the Horse Racing Law (Law No.158 of 1948;hereinafter referred to as "the Law" ) as distinct from the General Account.

Article 2.　The present Account shall be administered by the Minister of Agriculture and Forestry in accordance with the provisions of laws and ordinances.

Article 3.　The present Account shall be divided into the betting ticket sub-account and the management sub-account.

Article 4.　In the betting ticket sub-account, the revenues shall be proceeds from the sale of betting tickets under the provisions of Article 5 of the Law, receipts in error accompanying the sale of betting tickets (hereinafter referred to as "receipts in error" ), interests on deposits and accessory sundry receipts, and the expenditures shall be dividends under the provisions of Articles 8 and 9 of the Law (hereinafter referred to as "Letting ticket dividends" ), repayments under the provisions of Article 12, paragraphs 2 and 4 of the Law (hereinafter referred to as "repayments" ), supplementals of deficits in each due to accidents accompanying the receipt of proceeds from the sale of betting tickets or the payment of betting ticket, dividends or repayments (hereinafter referred to as "supplementals" ), refunds of receipts in error, interests on temporary borrowings under the provision of Article 14, paragraph 2 and transfers to the management sub-account.

Article 5.　The amount of the transfer to the management sub-account under the provision of the preceding Article shall be the total sum of the amount of received revenues of the betting ticket sub-account minus disbursed betting ticket dividends, repayments, supplementals, refunds of receipts in error, interests on temporary borrowings and the unpaid amount of the preceding disbursements of the said sub-account for every fiscal year, and the amount equivalent to the unpaid amount of disbursements of the said sub-account, the obligation of which lapsed due to prescription or limitation, for every fiscal year.

2　The transfer under the preceding paragraph shall be made as soon as possible within sixty days after the last day of each horse racing divided by each horse racing in the course of the fiscal year concerned;provided that the transfer of the unpaid amount of disbursements, of which obligation lapsed, under the provision of the preceding paragraph shall be made at the end of the fiscal year en bloc.

3　In case the expenditure of the betting ticket sub-account for the transfer is short of the amount to be transferred in case of the preceding paragraph, the amount of shortage shall be transferred in the following fiscal year.

Article 6.　In the management sub-account, the revenues shall be transfers from the betting ticket sub-account, admission fees under the provision of Article 4, paragraph 1 of the Law, register commissions and license feels under the provisions of Article 17 of the Law, rents of horse racing facilities, proceeds from the sale of publications related to horse racing, receipts arising from the medical facilities for horse racing, special register commissions under the provision of Article 18, paragraph 1 of the Law, receipts arising from the fixed reserve, transfers from the fixed reserve under the provision of Article 11, paragraph 4 and accessory sundry receipts like as interests on deposits, and the expenditures shall be transfers to the General Account business expenses, miscellaneous expenses for holding horse racing, expenses for development, improvement, maintenance and repair of horse racing facilities, rents of goods for holding horse racing, grants of admission tax, etc. under the provision of Article 4, paragraph 2 of the Law, expenses for medical facilities for horse racing, expenses for purchase and breading of horses for horse racing, expenses for research, study and popularization concerning horse racing, interests on temporary borrowings under the provision of Article 14, paragraph 2 and accessory miscellaneous expenses.

2　Expenses for supervision of local horse racings shall belong to the present Account and shall be the expenditures of the management sub-account.

Article 7.　The amount of the transfer to the General Account under the provision of paragraph 1 of the preceding Article shall be the received amount of revenues under the same paragraph of the management sub-account for each fiscal year other than special register commissions and the transfer from the fixed reserve, minus the disbursed amount of expenditures for business expenses, miscellaneous expenses for holding horse racing (exclusive of prize referred to in Article 18, paragraph 2 of the Law), expenses for development, improvement, maintenance and repair of facilities, rents of goods, grants of admission tax, etc., expenses for medical facilities, expenses for purchase and breeding of horses, expenses for research, study and popularization, interests on temporary borrowings, expenses for supervision of local horse racings and accessory miscellaneous expenses and the undisbursed amount thereof in the expenditures under the provisions of paragraphs 1 and 2 of the same Article of the said sub-account.

2　The provision of Article 5, paragraph 3 shall apply mutatis mutandis to the transfer to the General Account referred to in Article 6, paragraph 1. In this case, "the betting ticket sub-account" shall read "the management sub-account" .

Article 8.　The budget of revenues and expenditures of the present Account shall be divided into the betting ticket sub-account and the management sub-account, and each sub-account shall be divided into titles and items according to the source of revenues and the purpose of expenditures.

Article 9.　Every fiscal year the Cabinet shall prepare the budget of the present Account and shall submit it to the Diet together with the budget of the General Account.

2　The budget referred to in the preceding paragraph shall be accompanied with the following documents:

Article 10.　In case the Minister of Agriculture and Forestry deems it necessary to permit cash payments of betting ticket dividends, repayments and refunds of receipts in error belonging to the betting ticket sub-account, he may deliver necessary fund from the fund for disbursements in the sub-account concerned (this means the standing amount of received revenues, received temporary borrowings and diverted Treasury's cash available) to the official concerned and make him divert it.

2　The delivered fund under the provision of the preceding paragraph shall be refunded within sixty days after the day of its delivery.

Article 11.　In case there, arises any surplus on settlement of account for every fiscal year in the betting ticket sub-account, the said surplus shall be transferred to the revenues for the following fiscal year.

2　In the management sub-account, the surplus, if any, after deducting the sum total of the disbursed amount of the expenditure and the balance of the special register commissions for the fiscal year concerned (in case there is no disbursement in the fiscal year concerned, the total amount of the said commissions from the received revenues for every fiscal year, shall be transferred to the revenues for the following fiscal year.

3　In case of the preceding paragraph, the amount equivalent to the balance of the special register commissions shall be accumulated as the fixed reserve.

4　The fixed reserve under the provision of the preceding paragraph shall be disbursed for the prizes under the provision of Article 18, paragraph 2 of the Law as prescribed in the budget.

Article 12.　Every fiscal year the Cabinet shall prepare the settlement of revenues and expenditures for the present Account and submit it to the Diet together with the settlement of revenues and expenditures for the General Account.

2　The settlement of revenues and expenditures referred to in the preceding paragraph shall be accompanied with the following documents:

Article 13.　The provisions of Article 8 of the Law for Special Account for Demand and Supply Adjustment of Charcoal and Firewood (Law No.147 of 1947) shall apply mutatis mutandis to the transfer of the intrest on the temporary borrowings for the present Account, the provisions of Articles 10 and 15 of the said Law shall apply mutatis mutandis to the budget and the settlement of account for the present Account, and the provisions of Article 17 of the said Law shall apply mutatis mutandis to the carrying forward of expenditures for the present Account which became due. In this case, in Article 8 of the said Law "on the burden of the present Account" shall read "on the burden of the betting ticket sub-account" , "or the management sub-account of the present Account" , and in Article 17 of the said Law, "in the fiscal year concerned" shall read "until the conclusion of receipt and payment for the fiscal year concerned" .

Article 14.　In case there arises any cash available for payment in each sub-account, the said cash may be deposited with the Deposits Bureau, Ministry of Finance.

2　In case there arises any deficit in the cash for payment in each sub-account, the said sub-account may make the temporary borrowings or divert the Treasury's cash available on the burden of the sub-account concerned.

3　The temporary borrowings under the provision of the preceding paragraph shall be redeemed within sixty days from the day of its borrowing in the course of the fiscal year concerned, and within the fiscal year concerned respectively in case of the betting ticket sub-account and the management sub-account and the Treasury's cash available diverted shall be redeemed within twenty days from the day of its diversion and without delay after the transfer was made from the betting ticket sub-account respectively in case of the betting ticket sub-account and the management sub-account.

Article 15.　Business concerning the making and redeeming of the temporary borrowings under the provision of the preceding Article, paragraph 2 shall be managed by the Minister of Finance.

Article 16.　The fixed reserve of the present Account may be operated by depositing with the Deposits Bureau, Ministry of Finance.

Article 17.　The Government may entrust its specified banks (exclusive of the Bank of Japan) with a part of the business concerning settlement of proceeds from the sale of betting tickets and dividends, payment of the proceeds concerned and the transportation of the cash for the fund under the provision of Article 10, paragraph 1.

Article 18.　Necessary procedural and administrative matters concerning enforcement of the present Law shall be prescribed by a Cabinet Order.