BILL NUMBER:  S3021

 TITLE OF BILL :
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to the imposition of fines


 PURPOSE :

This bill empowers the Racing and Wagering Board (Board) to impose
fines on off-track betting (OTB) corporations and other persons or
corporations participating in off-track betting.

 SUMMARY OF PROVISIONS :

Section 1 of this bill adds a new subdivision 4 to Racing, Pari-Mutuel
Wagering and Breeding (Racing) Law § 522 to empower the Board to
impose monetary fines upon any person, corporation or association
participating in any way in off-track betting, for violation of any
provision of the Racing Law, Board rules or orders, or the approved
plan of operation for the conduct of off-track betting.

Section 2 of the bill contains the effective date.

 EXISTING LAW :

              

Article V-a (off-track pari-mutuel betting) provides only one method
for the imposition of sanctions for a violation of the statute, Board
rules or the approved plan of operation by an off-track betting
corporation or its employees, except in relation to simulcasting.
That method is to suspend the OTB corporation's plan of operation.

 LEGISLATIVE HISTORY :

This is a new bill.

 STATEMENT IN SUPPORT :

The harness, quarterhorse and simulcast articles of the Racing Law
contain explicit authorization (Sections 310,410 and 1005) for the
imposition of fines up to $5,000 upon entities and individuals
participating in pari-mutuel racing. The current system of sanctions
to insure compliance with the off-track betting provisions of the law
is impracticable. Termination of all corporate operations' or a
portion thereof, with the resulting loss of revenues to all segments
of the racing industry, as well as State and local governments, is a
drastic action that could be taken in only the most serious instances.
The power to fine is the most practical enforcement method in racing
and exists in all other racing jurisdictions.

In order to enable the Board to properly discharge its oversight,
supervisory and regulatory functions, additional alternative sanctions
should be available to the Board directly within Article V-a. This
proposal would remedy an adverse court determination that sustained a
challenge to a fine on the basis that the Board did not have the power
to fine OTB corporations for other than Article X (simulcasting)
violations. The maximum fine would be $50,000 for each violation, to
be paid into the State treasury. The imposition of a fine would be
subject to appeal provisions and would be reviewable in court.

 BUDGET IMPLICATIONS :

The fines provided for by this bill might raise a limited amount of
revenue for the State.

 EFFECTIVE DATE :
This bill would take effect immediately.