S T A T E O F N E W Y O R K
________________________________________________________________________
7076
I N S E N A T E
April 23, 2014
___________
Introduced by Sen. BONACIC -- (at request of the New York State Gaming
Commission) -- read twice and ordered printed, and when printed to be
committed to the Committee on Racing, Gaming and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to oversight of a franchised racing corporation and to make
technical amendments thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraphs (iii), (iv), (vii), (xiii) and (xvii) of
paragraph a of subdivision 8 of section 212 of the racing, pari-mutuel
wagering and breeding law, as added by chapter 18 of the laws of 2008,
are amended to read as follows:
(iii) oversee, monitor and review all significant transactions and
operations of the franchised corporation authorized by this chapter;
provided, however, that nothing in this section shall be deemed to
reduce, diminish or impede the authority of the state [racing and wager-
ing board] GAMING COMMISSION to, pursuant to article one of this chap-
ter, determine and enforce compliance by the franchised corporation with
terms of racing laws and regulations. Such oversight shall include, but
not be limited to:
(A) review and make recommendations concerning the annual operating
budgets of such franchised corporation;
(B) review and make recommendations concerning operating revenues and
the establishment of a financial plan;
(C) review and make recommendations concerning accounting, internal
control systems and security procedures;
(D) review such franchised corporation's revenue and expenditure
[polices] POLICIES, which shall include collective bargaining agreements
management and employee compensation plans, vendor contracts and capital
improvement plans;
(E) review such franchise corporation's compliance with the laws,
rules and regulations applicable to its activities;
(F) make recommendations for establishing model governance principles
to improve accountability and transparency; and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13909-02-4
S. 7076 2
(G) receive, review, approve or disapprove capital expense plans
submitted annually by the franchised corporation.
(iv) evaluate, review and approve the racing franchisee's selection of
a vendor or vendors to contract with the franchised corporation for
provision of [totalizator] TOTALISATOR services, and manage, subject to
the franchised corporation's unilateral right to opt out, directly or
indirectly, integration of any offered internet wagering platform. The
franchise oversight board shall consider in its evaluation of any such
proposed vendor their ability to reduce the [totalizator] TOTALISATOR
expenses and general development and production costs of any internet
wagering platform of an authorized off-track betting corporation and the
state racing franchise holder.
(vii) review and provide any recommendations on all simulcasting
contracts (buy and sell) that are also subject to prior approval of the
[racing and wagering board] STATE GAMING COMMISSION;
(xiii) require the franchised corporation to make all records and
documents pertaining to its financial practices, and other documents and
records necessary to carry out its duties, INCLUDING WITHOUT LIMITATION
ANY REPORTS OF INDEPENDENT BUSINESS INTEGRITY COUNSEL RETAINED PURSUANT
TO SUBDIVISION FIVE OF SECTION TWO HUNDRED SIX OF THIS ARTICLE. SUCH
REPORTS ARE NOT PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE SET FORTH IN
SECTION FORTY-FIVE HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES OR
OTHERWISE IN RELATION TO THIS MANDATORY DISCLOSURE TO THE FRANCHISE
OVERSIGHT BOARD, BUT SUCH REPORTS RETAIN SUCH PRIVILEGE IN REGARD TO
OTHER PARTIES UNLESS THE FRANCHISE OVERSIGHT BOARD NEEDS TO DISCLOSE
SUCH REPORTS TO PROMOTE OR ENSURE COMPLIANCE BY THE FRANCHISED CORPO-
RATION WITH THE LAWS AND RULES OF THE STATE OF NEW YORK. SUCH RECORDS
AND DOCUMENTS SHALL BE available to the franchise oversight board within
thirty days of a written request;
(xvii) request and accept the assistance of any state agency, includ-
ing but not limited to, the [racing and wagering board] STATE GAMING
COMMISSION, the [division of the lottery] office of parks, recreation
and historic preservation, the department of environmental conservation
and the department of taxation and finance, in obtaining information
related to the franchised corporation's compliance with the terms of the
franchise agreement; and
S 2. This act shall take effect immediately; provided, however the
amendments to section 212 of the racing, pari-mutuel wagering and breed-
ing law made by section one of this act shall not affect the expiration
and repeal of such section pursuant to chapter 354 of the laws of 2005
and shall expire and be deemed repealed therewith.