(1) For the purpose of encouraging the breeding, within this state, of valuable thoroughbred, purebred and/or registered horses, at least one (1) race each day at each horse race meet shall be limited to Idaho bred horses. If in the opinion of the commission sufficient competition cannot be had among such class of horses, said race may be written as an Idaho bred preferred race instead.
(2)  A sum equal to ten percent (10%) of the first place purse money won by an Idaho bred horse shall be paid by the licensee conducting the race meet to the breeder of such horse. All purse moneys derived from pari-mutuel racing and all purse enhancement moneys from the Idaho state racing commission shall be included in the calculation of these breeder payments. All nominating and sustaining fees, and any moneys from outside sponsors shall be excluded from the calculation of these breeder payments.