NY State Senate Bill 2017-S7745A

Senate Bill S7745A

2017-2018 Legislative Session

Relates to allowing funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2018	committed to rules
Mar 15, 2018	advanced to third reading
Mar 14, 2018	2nd report cal.
Mar 13, 2018	1st report cal.634
Mar 05, 2018	print number 7745a
Mar 05, 2018	amend (t) and recommit to racing, gaming and wagering
Feb 14, 2018	referred to racing, gaming and wagering

Votes

- Mar 13, 2018 - Racing, Gaming And Wagering Committee Vote
  S7745A
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Racing, Gaming And Wagering Committee Vote: Mar 13, 2018
      
      aye (11)
      
      Addabbo Jr.
      
      Akshar
      
      Bonacic
      
      Boyle
      
      Comrie
      
      Griffo
      
      Marchione
      
      Ranzenhofer
      
      Sanders Jr.
      
      Stavisky
      
      Valesky

Bill Amendments

Original

A (Active)

co-Sponsors

2017-S7745 - Details

See Assembly Version of this Bill:: A9894
Current Committee:: Senate Rules
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Amd §§221 & 208, RWB L

2017-S7745 - Summary

Allows funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage.

2017-S7745 - Sponsor Memo

                                
 
BILL NUMBER: S7745

SPONSOR: BONACIC
 
TITLE OF BILL:  An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to allowing the New York Jockey Injury Compen-
sation Fund, Inc. to use as collateral up to ten per centum of the fund
for certain letters of credit

 
PURPOSE:

This bill would enable the New York Jockey Injury Compensation Fund,
Inc. (NYJICF) to pledge as collateral up to ten per centum from the New
York Racing Association ("NYRA") purse account to obtain a letter of
credit to be used to secure workers' compensation insurance coverage
through a form of self-insurance. This bill also would permit the NYJICF
in 2018 to continue to use up to two million dollars from the NYRA
unpaid purse cushion account without such funds counting against the two
per cent of purses that may be deducted from any owner's share of purses
to pay for the cost of workers' compensation insurance procured by the
NYJICF.

SUMMARY OF PROVISIONS:

Section 1:  Amends Subdivision 6 of Section 221 of the Racing, Pari-mu-
tuel Wagering and Breeding Law to enable the NYJICF to pledge as collat-
eral up to ten per centum from the NYRA purse account to obtain a letter
of credit to be used to secure workers' compensation insurance coverage
through a form of self-insurance.

Sections 2&3:  Amend the opening paragraph of Subdivision 7 of Section
221 of the Racing, Pari-Mutuel Wagering and Breeding Law and Paragraph
(a) of Subdivision 9 of Section 208 of the Racing, Pari-Mutuel Wagering
and Breeding Law to enable the NYJICF to continue in 2018 to use up to
$2 million dollars from the NYRA unpaid purse cushion account to help
pay for the cost of workers' compensation insurance procured by the
NYJICF, without such unused purse cushion funds counting against the two
per cent of purses deducted from any owner's share of purses to pay for
such workers' compensation insurance coverage.

Section 4:Effective date.

 
JUSTIFICATION:

In 2017, Racing, Pari-mutuel Wagering and Breeding Law § 221(6)(b) was
amended to authorize the NYJICF, upon the approval of the Gaming Commis-
sion, to elect to self-insure its workers' compensation insurance obli-
gations. However, to self-insure its workers' compensation insurance
obligations, the NYJICF must either place on deposit a significant
amount of cash or obtain a letter of credit.  Therefore, the NYJICF
seeks authority to pledge as collateral up to ten per centum from the
NYRA purse account to obtain a letter of credit to be used to secure
workers' compensation insurance coverage through a form of self-insu-
rance.

In addition, to pay the cost of the workers' compensation insurance
procured by the NYJICF, the NYJICF prepares an annual assessment plan,
which is subject to Gaming Commission review and approval. For 2016 and
2017, the NYJICF was granted the authority to use up to $2 million
dollars from the NYRA unpaid purse cushion account to be used by the
NYJICF to help pay for the workers' compensation insurance that it
procures. The NYJICF drew down $1,806,787 in 2016 and $1,546,705 in
2017,which represents over a $260,000 decrease year-over-year. For 2018,
the NYJICF seeks continued authority to use up to $2 million dollars
from such NYRA unpaid purse cushion.

If enacted, this bill will make racing in New York State more compet-
itive with other states in the short-term, as well make it possible for
the NYJICF to self-insure its workers' compensation insurance obliga-
tions-a potential long-term solutions to help reduce the costs of the
NYJICF-procured workers' compensation insurance coverage.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S7745 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7745
 
                             I N  S E N A T E
 
                             February 14, 2018
                                ___________
 
 Introduced  by Sens. BONACIC, MARCHIONE -- read twice and ordered print-
   ed, 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 allowing the New York  Jockey  Injury  Compensation  Fund,
   Inc. to use as collateral up to ten per centum of the fund for certain
   letters of credit

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision  6 of section 221 of  the  racing,  pari-mutuel
 wagering and breeding law, as amended by section 1 of part SS of chapter
 59 of the laws of 2017, is amended to read as follows:
   6.  (a) The fund shall secure workers' compensation insurance coverage
 on a blanket basis for the benefit of all  jockeys,  apprentice  jockeys
 and  exercise  persons licensed pursuant to this article or article four
 of this chapter who are employees under  section  two  of  the  workers'
 compensation law, and may elect, with the approval of the gaming commis-
 sion,  to  secure  workers'  compensation  insurance  for  employees  of
 licensed trainers or owners. In the event  the  fund  elects,  with  the
 approval  of  the  gaming  commission,  to  secure workers' compensation
 insurance for employees of licensed trainers or  owners,  the  fund  may
 discontinue  to  secure workers' compensation insurance for employees of
 licensed trainers or owners only  upon  prior  approval  of  the  gaming
 commission.
   (b) The fund may elect, with the approval of the gaming commission, to
 secure  workers' compensation insurance coverage through a form of self-
 insurance, provided that the fund has met the requirements of the  work-
 ers'  compensation  board,  including,  without  limitation, subdivision
 three of section  fifty  of  the  workers'  compensation  law,  PROVIDED
 FURTHER THAT THE FUND MAY PLEDGE AS COLLATERAL UP TO TEN PER CENTUM FROM
 THE  ACCOUNT  ESTABLISHED  PURSUANT  TO  SUBDIVISION NINE OF SECTION TWO
 HUNDRED EIGHT OF THIS ARTICLE TO OBTAIN A LETTER OF CREDIT TO BE USED TO
 SECURE WORKERS' COMPENSATION INSURANCE COVERAGE THROUGH A FORM OF  SELF-
 INSURANCE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14725-01-8

 S. 7745                             2
 
   §  2.  The  opening  paragraph  of subdivision 7 of section 221 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  2
 of  part  SS  of  chapter  59 of the laws of 2017, is amended to read as
 follows:
   In  order  to  pay the costs of the insurance required by this section
 and by the workers' compensation law and to carry out its  other  powers
 and  duties  and  to  pay for any of its liabilities under section four-
 teen-a of the workers' compensation law,  the  New  York  Jockey  Injury
 Compensation  Fund, Inc. shall ascertain the total funding necessary and
 establish the sums that are to  be  paid  by  all  owners  and  trainers
 licensed  or required to be licensed under section two hundred twenty of
 this article, to obtain the total funding amount required  annually.  In
 order to provide that any sum required to be paid by an owner or trainer
 is  equitable,  the fund shall establish payment schedules which reflect
 such  factors  as  are  appropriate,  including  where  applicable,  the
 geographic  location  of  the  racing  corporation at which the owner or
 trainer participates, the duration of such participation, the amount  of
 any purse earnings, the number of horses involved, or such other factors
 as the fund shall determine to be fair, equitable and in the best inter-
 ests  of  racing.  In no event shall the amount deducted from an owner's
 share of purses exceed two per centum; provided, however, for two  thou-
 sand  [seventeen] EIGHTEEN the New York Jockey Injury Compensation Fund,
 Inc. may use up to two million  dollars  from  the  account  established
 pursuant  to subdivision nine of section two hundred eight of this arti-
 cle to pay the annual costs required by this section and the funds  from
 such  account  shall  not  count  against  the  two per centum of purses
 deducted from an owner's share of purses. The amount  deducted  from  an
 owner's  share  of  purses  shall  not exceed one per centum after April
 first, two thousand twenty. In the  cases  of  multiple  ownerships  and
 limited  racing  appearances,  the  fund  shall equitably adjust the sum
 required.
   § 3. Paragraph (a) of subdivision 9 of  section  208  of  the  racing,
 pari-mutuel  wagering  and breeding law, as amended by section 2 of part
 PP of chapter 60 of the laws of 2016, is amended to read as follows:
   (a) The franchised corporation shall maintain a separate  account  for
 all  funds  held  on  deposit in trust by the corporation for individual
 horsemen's accounts. Purse funds shall be paid  by  the  corporation  as
 required to meet its purse payment obligations. Funds held in horsemen's
 accounts  shall only be released or applied as requested and directed by
 the individual horseman. For two thousand  [sixteen]  EIGHTEEN  the  New
 York  Jockey  Injury  Compensation  Fund, Inc. may use up to two million
 dollars from the account established pursuant to this subdivision to pay
 the annual costs required by section  two  hundred  twenty-one  of  this
 article.
   § 4. This act shall take effect immediately.

co-Sponsors

2017-S7745A (ACTIVE) - Details

See Assembly Version of this Bill:: A9894
Current Committee:: Senate Rules
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Amd §§221 & 208, RWB L

2017-S7745A (ACTIVE) - Summary

Allows funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage.

2017-S7745A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7745A

SPONSOR: BONACIC
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to funds held in trust by a franchised corporation for a recog-
nized horsemen's organization to be used as collateral to secure work-
ers' compensation insurance coverage

 
PURPOSE:

This bill would enable the establishment of a separate account to be
held on deposit in trust by the New York Racing Association (NYRA) for
the New York Thoroughbred Horsemens' Association (NYTHA).  Starting in
2018 and annually thereafter, funds from the NYRA unpaid purse cushion,
in an amount to be agreed upon by NYRA and NYTHA, would be transferred
to this account. Funds held in this account would be used by NYTHA sole-
ly as collateral to secure workers' compensation insurance coverage,
including loss sensitive programs, including through the NYJICF.

This bill also would permit the New York Jockey Injury Compensation Fund

(NYJICF) in 2018 to continue to use up to two million dollars from the
NYRA unpaid purse cushion account without such funds counting against
the two per cent of purses that may be deducted from any owner's share
of purses to pay for the cost of workers' compensation insurance
procured by the NYJICF.

 
SUMMARY OF PROVISIONS:

Sections 1 & 2: Amend the opening paragraph of Subdivision 7 of Section
221 of the Racing, Pari-Mutuel Wagering and Breeding Law and Paragraph
(a) of Subdivision 9 of Section 208 of the Racing, Pari-Mutuel Wagering
and Breeding Law to enable the NYJICF to continue in 2018 to use up to
$2 million dollars from the NYRA unpaid purse cushion account to help
pay for the cost of workers' compensation insurance procured by the
NYJICF, without such unused purse cushion funds counting against the two
per cent of purses deducted from any owner's share of purses to pay for
such workers' compensation insurance coverage.

Section 3: Renumbers paragraph (c) of Subdivision 9 of Section 208 of
the Racing, Pari-Mutuel Wagering and Breeding Law and adds new para-
graphs (c) and (d) of Section 208 of the Racing, Pari-Mutuel Wagering
and Breeding Law to enable the establishment of a separate account to be
held on deposit in trust by NYRA for NYTHA, with funds from such account
being used by NYTHA solely as collateral to secure workers' compensation
insurance coverage, including loss sensitive programs, including through
the NYJICF. In 2018 and annually thereafter, funds from the NYRA unpaid
purse cushion, in an amount to be agreed upon by NYRA and NYTHA, would
be transferred to this account.

Section 4: Effective date.

 
JUSTIFICATION:

In 2017, Racing, Pari-mutuel Wagering and Breeding Law § 221(6)(b) was
amended to authorize the NYJICF, upon the approval of the Gaming Commis-
sion, to elect to self-insure its workers' compensation insurance obli-
gations. However, to self-insure its workers' compensation insurance
obligations, the NYJICF must either place on deposit a significant
amount of cash or obtain a letter of credit. Therefore, NYTHA seeks
authority to transfer funds from the NYRA unpaid purse cushion account,
in an amount agreed upon by NYRA and NYTHA, to a new fund to be able to
use this funding as collateral to secure workers' compensation insurance
coverage.

In addition, to pay the cost of the workers' compensation insurance
procured by the NYJICF, the NYJICF prepares an annual assessment plan,
which is subject to Gaming Commission review and approval. For 2016 and
2017, the NYJICF was granted the authority to use up to $2 million
dollars from the NYRA unpaid purse cushion account to be used by the
NYJICF to help pay for the workers' compensation insurance that it
procures. The NYJICF drew down $1,806,787 in 2016 and $1,546,705 in
2017,which represents over a $260,000 decrease year-over-year. For 2018,
the NYJICF seeks continued authority to use up to $2 million dollars
from such NYRA unpaid purse cushion.

If enacted, this bill will make racing in New York State more compet-
itive with other states in the short-term, as well make it possible for
the NYJICF to self-insure its workers' compensation insurance obliga-
tions-a potential long-term solutions to help reduce the costs of the
NYJICF-procured workers' compensation insurance coverage.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S7745A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7745--A
 
                             I N  S E N A T E
 
                             February 14, 2018
                                ___________
 
 Introduced  by Sens. BONACIC, MARCHIONE -- read twice and ordered print-
   ed, and when printed to be  committed  to  the  Committee  on  Racing,
   Gaming  and  Wagering  --  committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
   relation  to  funds  held  in  trust by a franchised corporation for a
   recognized horsemen's organization to be used as collateral to  secure
   workers' compensation insurance coverage
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The opening paragraph of subdivision 7 of section  221  of
 the racing, pari-mutuel wagering and breeding law, as amended by section
 2  of  part  SS of chapter 59 of the laws of 2017, is amended to read as
 follows:
   In order to pay the costs of the insurance required  by  this  section
 and  by  the workers' compensation law and to carry out its other powers
 and duties and to pay for any of its  liabilities  under  section  four-
 teen-a  of  the  workers'  compensation  law, the New York Jockey Injury
 Compensation Fund, Inc. shall ascertain the total funding necessary  and
 establish  the  sums  that  are  to  be  paid by all owners and trainers
 licensed or required to be licensed under section two hundred twenty  of
 this  article,  to obtain the total funding amount required annually. In
 order to provide that any sum required to be paid by an owner or trainer
 is equitable, the fund shall establish payment schedules  which  reflect
 such  factors  as  are  appropriate,  including  where  applicable,  the
 geographic location of the racing corporation  at  which  the  owner  or
 trainer  participates, the duration of such participation, the amount of
 any purse earnings, the number of horses involved, or such other factors
 as the fund shall determine to be fair, equitable and in the best inter-
 ests of racing. In no event shall the amount deducted  from  an  owner's
 share  of purses exceed two per centum; provided, however, for two thou-
 sand [seventeen] EIGHTEEN the New York Jockey Injury Compensation  Fund,
 Inc.  may  use  up  to  two million dollars from the account established
 pursuant to subdivision nine of section two hundred eight of this  arti-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14725-02-8

 S. 7745--A                          2
 
 cle  to pay the annual costs required by this section and the funds from
 such account shall not count  against  the  two  per  centum  of  purses
 deducted  from  an  owner's share of purses. The amount deducted from an
 owner's  share  of  purses  shall  not exceed one per centum after April
 first, two thousand twenty. In the  cases  of  multiple  ownerships  and
 limited  racing  appearances,  the  fund  shall equitably adjust the sum
 required.
   § 2. Paragraph (a) of subdivision 9 of  section  208  of  the  racing,
 pari-mutuel  wagering  and breeding law, as amended by section 2 of part
 PP of chapter 60 of the laws of 2016, is amended to read as follows:
   (a) The franchised corporation shall maintain a separate  account  for
 all  funds  held  on  deposit in trust by the corporation for individual
 horsemen's accounts. Purse funds shall be paid  by  the  corporation  as
 required to meet its purse payment obligations. Funds held in horsemen's
 accounts  shall only be released or applied as requested and directed by
 the individual horseman. For two thousand  [sixteen]  EIGHTEEN  the  New
 York  Jockey  Injury  Compensation  Fund, Inc. may use up to two million
 dollars from the account established pursuant to this subdivision to pay
 the annual costs required by section  two  hundred  twenty-one  of  this
 article.
   §  3.  Paragraph  (c)  of  subdivision 9 of section 208 of the racing,
 pari-mutuel wagering and breeding law is relettered  paragraph  (e)  and
 two new paragraphs (c) and (d) are added to read as follows:
   (C) THE FRANCHISED CORPORATION SHALL ESTABLISH AND MAINTAIN A SEPARATE
 ACCOUNT  FOR  FUNDS  TO  BE  HELD  ON DEPOSIT IN TRUST BY THE FRANCHISED
 CORPORATION FOR  THE  HORSEMEN'S  ORGANIZATION  RECOGNIZED  PURSUANT  TO
 SECTION  TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE. STARTING IN TWO THOU-
 SAND EIGHTEEN AND ANNUALLY THEREAFTER, FUNDS  FROM  THE  ACCOUNT  ESTAB-
 LISHED  PURSUANT  TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE SEPARATE
 ACCOUNT ESTABLISHED UNDER THIS PARAGRAPH IN AN AMOUNT TO BE AGREED  UPON
 BY THE FRANCHISED CORPORATION AND THE HORSEMEN'S ORGANIZATION RECOGNIZED
 PURSUANT  TO  SECTION  TWO  HUNDRED TWENTY-EIGHT OF THIS ARTICLE.  FUNDS
 HELD IN THIS ACCOUNT SHALL  BE  USED  BY  THE  APPROPRIATELY  RECOGNIZED
 HORSEMEN'S  ORGANIZATION SOLELY AS COLLATERAL TO SECURE WORKERS' COMPEN-
 SATION INSURANCE COVERAGE, INCLUDING LOSS SENSITIVE PROGRAMS,  INCLUDING
 THROUGH THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC.
   (D)  IN  THE  EVENT THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO
 SECTION TWO HUNDRED TWENTY-EIGHT OF THIS  ARTICLE  DETERMINES  THAT  THE
 FUNDS ARE NO LONGER NEEDED AS COLLATERAL TO SECURE WORKERS' COMPENSATION
 INSURANCE  COVERAGE,  THEN, UPON AGREEMENT BY THE FRANCHISED CORPORATION
 AND THE APPROPRIATELY RECOGNIZED HORSEMEN'S ORGANIZATION, FUNDS  IN  THE
 SEPARATE  ACCOUNT  ESTABLISHED  UNDER  PARAGRAPH (C) OF THIS SUBDIVISION
 SHALL BE RETURNED TO THE ACCOUNT ESTABLISHED PURSUANT TO  THIS  SUBDIVI-
 SION.
   § 4. This act shall take effect immediately.

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Senate Bill S7745A

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Sponsored By

John J. Bonacic

Archive: Last Bill Status - In Senate Committee Rules Committee

Bill Amendments

co-Sponsors

Kathleen A. Marchione

2017-S7745 - Details

2017-S7745 - Summary

2017-S7745 - Sponsor Memo

2017-S7745 - Bill Text download pdf

co-Sponsors

Kathleen A. Marchione

2017-S7745A (ACTIVE) - Details

2017-S7745A (ACTIVE) - Summary

2017-S7745A (ACTIVE) - Sponsor Memo

2017-S7745A (ACTIVE) - Bill Text download pdf

Comments