[ ] is old law to be omitted.
LBD14398-03-0
S. 7639 2
chapter 60 of the laws of 2012. The legislature does not intend for
subdivision (a) of section 10 of part A of chapter 60 of the laws of
2012 to apply to racing, pari-mutuel wagering and breeding law sections
107, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 129 and
paragraph b of subdivision 8 of section 212, each of which make specific
reference to "former" entities, for which references should not be
amended.
§ 2. The opening paragraph of section 101 of the racing, pari-mutuel
wagering and breeding law, as added by section 1 of part A of chapter 60
of the laws of 2012, is amended to read as follows:
As used in this [article] CHAPTER, the following terms shall have the
following meanings, UNLESS THE CONTEXT REQUIRES OTHERWISE:
§ 3. Subdivision (b) of section 201 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
(b) Approval. No certificate of incorporation under this section wher-
ein the right to conduct running or steeplechase race meetings is
claimed, shall hereafter be filed without the approval of the [state
racing and wagering board] COMMISSION, indorsed thereon or annexed ther-
eto, stating that, in its opinion, the purposes of this article and the
public interest will be promoted by such incorporation, and that such
incorporation will be conducive to the interests of legitimate racing;
nor shall any certificate amending the said certificate of incorporation
in any particular or any certificate of merger affecting said corpo-
ration be filed without the approval of the [state racing and wagering
board] COMMISSION, indorsed thereon or annexed thereto stating that, in
its opinion, the purposes of this article and the public interest will
be promoted by such amendment or by such merger and that such amendment
or such merger will be conducive to the interests of legitimate racing.
§ 4. Section 202 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 549 of the laws of 2013, is amended to read as
follows:
§ 202. Restriction upon commencement of business. No business corpo-
ration organized under the provisions of this article shall engage in
the prosecution or management of its business until the whole of its
capital stock shall have been subscribed, nor until it shall have filed
in the offices where certificates of incorporation were filed, a further
certificate stating that the whole of its capital stock has been in good
faith subscribed, executed and acknowledged by its president or vice-
president and treasurer or secretary, and verified by them to the effect
that the statements contained in it are true.
Notwithstanding the foregoing, corporations organized pursuant to
section two hundred one of the not-for-profit corporation law as chari-
table corporations as defined in paragraph (a) of section one hundred
two (Definitions) of the not-for-profit corporation law shall not engage
in the prosecution or management of its business until its certificate
of incorporation has been accepted for filing by the secretary of state
and such confirmation of filing has been filed with the [board] COMMIS-
SION and the franchise oversight board.
§ 5. Section 204 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 204. Certificate of payment of stock. Except as provided in this
article, no business corporation hereafter organized under this article
or heretofore organized in pursuance of law for any purpose authorized
by this article, shall have any of the powers conferred by section two
S. 7639 3
hundred three of this article until [it] SUCH CORPORATION shall have
filed in the office or offices where its certificate of incorporation
was filed, a further certificate stating that its capital stock has been
fully paid in cash, and if claiming the right to conduct running race
meetings, that, except as may be authorized by the [board] COMMISSION,
it actually maintains a racetrack of not less than five-eighths of one
mile in length or circumference, the location of which shall be speci-
fied in such certificate. Such certificate shall be executed and
acknowledged by [its] SUCH CORPORATION'S president or vice-president and
[its] SUCH CORPORATION'S treasurer or secretary, and verified by them to
the effect that the statements contained in [it] SUCH CERTIFICATE are
true. In the case of racing courses to be used for running races or
steeplechases, a license from the [state racing and wagering board]
COMMISSION must also be obtained in the manner hereinafter provided, and
such license be filed with such certificate.
§ 6. Section 205 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 205. License for running races and steeplechase meetings. Any non-
franchised corporation desiring to obtain the benefits of the provisions
of section two hundred three of this article, if proposing to conduct a
race course or race meeting for running races or steeplechases, may
annually apply to the [state racing and wagering board] COMMISSION for a
license to conduct running races and race meetings or steeplechases and
steeplechase meetings, as the case may be. If, in the judgment of such
[board] COMMISSION the public interest, convenience or necessity will be
served thereby and a proper case for the issuance of such license is
shown consistent with the purposes of this article and the best interest
of racing generally, [it] THE COMMISSION may grant such license, for a
term within the calendar year, which shall specify the dates and period
of time during which, and the place where, the licensee may operate. The
fee for such license shall be one hundred dollars for each racing day,
payable upon issuance of license. In considering an application for a
license under this section, the [state racing and wagering board]
COMMISSION may give consideration to the number of licenses already
granted and to the location of the tracks previously licensed. Every
such license shall contain a condition that all running races or race
meetings conducted thereunder shall be subject to such reasonable rules
and regulations from time to time prescribed by the [board] COMMISSION,
designated as the "rules of racing". Before promulgating such rules of
racing or modifying or abrogating any of them, the [board] COMMISSION
shall give the jockey club, a corporation organized under the laws of
the state of New York, an opportunity to submit recommendations relative
to such rules for running races and race meetings, and to the national
steeplechase and hunt association, a corporation organized under the
laws of the state of New York, an opportunity to submit recommendations
relative to such rules for steeplechases and steeplechase meetings, and
the [board] COMMISSION may adopt, to the extent that it deems appropri-
ate, any rules so submitted by either of such corporations or by any
other nationally recognized association or corporation [which] THAT has
for its purpose the improvement of the breed.
§ 7. Subdivisions 3, 4, 5, 7 and 8 of section 208 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:
3. As a condition of franchise acceptance, the franchised corporation
shall make application with the [racing and wagering board] COMMISSION
S. 7639 4
for live thoroughbred racing dates at thoroughbred racing facilities
located in Queens county, Saratoga county and jointly located in Nassau
and Queens counties in a manner substantially similar to the racing
dates presently undertaken.
4. As a condition of franchise acceptance, the franchised corporation
shall agree that it will conduct running races, steeplechases and race
meetings in accordance with the provisions thereof and that all running
races, steeplechases or race meetings conducted thereunder shall be
subject to such reasonable rules and regulations from time to time
prescribed by the [state racing and wagering board] GAMING COMMISSION.
5. A franchise may be revoked and cancelled by the [state racing and
wagering board] COMMISSION only for the reasons and in the manner
prescribed under the provisions of sections two hundred twelve and two
hundred forty-four of this article. The action of the [state racing and
wagering board] COMMISSION in revoking a franchise shall be reviewable
in the supreme court in the manner provided by and subject to the
provisions of article seventy-eight of the civil practice law and rules.
7. Notwithstanding the provisions of section seven of the general
business law, or any other inconsistent provision of general, special or
local law, the [state racing and wagering board] COMMISSION shall speci-
fy annually the dates on which, and the hour of the first post time for
days during which, such franchised corporation may operate at the places
and for the full number of days specified in its franchise.
8. The [state racing and wagering board] COMMISSION shall permit the
franchised corporation to conduct pari-mutuel betting in the manner and
subject to the conditions prescribed by this chapter, at the racetracks
described in such racing franchise for the duration of such racing fran-
chise.
§ 8. Section 209 of the racing, pari-mutuel wagering and breeding law,
as added by chapter 140 of the laws of 2008, is amended to read as
follows:
§ 209. Examination of the books and accounts by the state comptroller.
Notwithstanding any other provision of this article, the state comp-
troller may from time to time examine the books and accounts of such
[franchise] FRANCHISED corporation, including its receipts, disburse-
ments, contracts, leases, loans, investments and any other matters
relating to its financial operations, including the franchised corpo-
ration's calculation of the franchise fee payment pursuant to the
provisions of subdivision one of section two hundred eight of this arti-
cle and report the results of each audit to the governor, the legisla-
ture, the attorney general, the franchise oversight board and the [state
racing and wagering board] COMMISSION.
§ 9. Subdivision 1 of section 210-a of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
1. No franchised corporation shall relinquish a franchise granted to
it pursuant to section two hundred six of this article at any time with-
in the term of any such franchise without giving separate written
notification of its intention to effect relinquishment by certified mail
return receipt requested to the franchise oversight board and the [state
racing and wagering board] COMMISSION not less than one hundred eighty
days prior to the date such franchised corporation proposes to be the
effective date of relinquishment.
§ 10. Section 211 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
S. 7639 5
§ 211. Fair association, when entitled to privileges. Any state, coun-
ty or other fair association shall be entitled to the privileges
conferred by section two hundred four of this [chapter] ARTICLE upon
filing in the offices wherein its certificate of incorporation is filed,
a certificate [which shall set] THAT SETS forth its intention to avail
itself of such privileges; and any such state, county or other fair
association shall not be required to obtain any license or file any
other certificate. State, county and other fair associations entitled to
conduct trotting races may also conduct running races in connection
therewith, and the provisions of this article requiring a racetrack to
be of specified dimensions shall not apply to such association; but no
running races shall be conducted for more than five days on any track or
grounds, unless the license of the [state racing and wagering board]
COMMISSION therefor is first obtained.
§ 11. Subdivision 6, subparagraph (iv) of paragraph a and paragraph b
of subdivision 8 of section 212 of the racing, pari-mutuel wagering and
breeding law, subdivision 6 as amended by chapter 688 of the laws of
2019, subparagraph (iv) of paragraph a and paragraph b of subdivision 8
as added by chapter 18 of the laws of 2008, are amended to read as
follows:
6. Within thirty days following the appointment of the members of the
franchise oversight board, the members of the oversight board shall
establish a local advisory board for each racing operation [comprised
of] COMPRISING the following members to meet at least twice yearly:
a. The local advisory board for the Saratoga racetrack facility shall
[be comprised of] COMPRISE fifteen members and include five designees
from each of the following: the board of supervisors, the mayor of the
city of Saratoga and the franchised corporation.
b. The local advisory board for the Aqueduct racetrack facility shall
[be comprised of] COMPRISE fifteen members, nine of whom shall be desig-
nees of New York City Queens Community Board Ten, three designees of the
franchised corporation and three designees of the video lottery gaming
operator.
c. The local advisory board for the Belmont racetrack facility shall
[be comprised of] COMPRISE fifteen members, to be appointed as follows:
(i) [Five] FIVE members from Nassau county to be appointed by the
Nassau county executive. Four of such members must reside in the hamlet
of Elmont[.];
(ii) [Two] TWO members from the town of Hempstead to be appointed by
the supervisor of the town of Hempstead. Both members must reside in the
hamlet of Elmont[.];
(iii) [Two] TWO members to be appointed by the mayor of the village of
Floral Park, subject to village board approval[.];
(iv) [One] ONE member to be appointed by the mayor of the village of
South Floral Park, subject to village board approval[.];
(v) [Three] THREE members to be appointed by the New York Racing Asso-
ciation, Inc.; AND
(vi) [Two] TWO members to be appointed by the New York City Queens
Community Board 13.
The members of the local advisory boards shall serve for a period of
two years. In the event of a vacancy occurring during a term of appoint-
ment by reason of death, resignation, disqualification or otherwise such
vacancy shall be filled for the unexpired term in the same manner as the
original appointment. The members of the local advisory board shall
serve without compensation, except that each member shall be allowed the
S. 7639 6
necessary and actual expenses incurred in the performance of his or her
duties pursuant to this section.
(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 services, and manage, subject to the franchised
corporation's unilateral right to opt out, directly or indirectly, inte-
gration of any offered internet wagering platform. The franchise over-
sight board shall consider in its evaluation of any such proposed vendor
[their] THE ability OF SUCH VENDOR to reduce the totalizator 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.
b. Notwithstanding any other provision of this article, the franchised
corporation shall be entitled to make capital expenditures, except those
capital expenditures for the Saratoga Racecourse that may, on the advice
of the New York state historic preservation office, adversely impact any
historic structure that is included in or is eligible for inclusion in
the national or state register of historic places, to the physical plant
of the racetracks, grandstand, backstretch, parking and public areas set
forth in the New York Racing Association's capital expenditure plan
("capital plan") filed with the [racing and wagering board] COMMISSION
in two thousand seven. Any material modification to the capital plan as
determined by the franchise oversight board and each future capital
investment plan for the tracks, grandstand, backstretch, parking and
public areas of the racetracks operated by the franchised corporation
involving the expenditure of more than five million dollars in the
aggregate shall require the prior approval of the franchise oversight
board. Within five years from the date of commencement of the video
lottery terminal operations at Aqueduct, and every five years thereaft-
er, the franchised corporation shall submit to the oversight board a
capital plan for the [five year] FIVE-YEAR period commencing on January
first of the following year. Such plans shall contain both the intended
object of expenditure and the proposed sources of financing. The fran-
chised corporation shall report to the franchise oversight board within
ninety days following the end of each fiscal year as to the amount spent
pursuant to the capital plan.
§ 12. Subdivision 1 of section 216 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
1. Any franchised corporation desiring to grant, give, devise, or sell
any assets including tangible and intangible assets, racing facilities
and real estate shall apply to the [state racing and wagering board]
COMMISSION and to the franchise oversight board for approval of such
disposition, provided, however, that the approval of such [boards]
COMMISSION AND SUCH BOARD shall not be necessary for the sale of proper-
ty, other than real property, [which] THAT is appropriately, customarily
and usually sold by the association in the normal course of its busi-
ness. If in the judgment of [each such] THE COMMISSION AND THE FRANCHISE
OVERSIGHT board, acting individually, the public interest, convenience
or necessity and the best interest of racing will be served thereby,
[each such] THE COMMISSION AND FRANCHISE OVERSIGHT board shall EACH
enter an order granting approval of such disposition and of the terms
thereof.
§ 13. Section 217 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
S. 7639 7
§ 217. Revocation of licenses. If any corporation to which a license
shall be granted shall fail or refuse to comply with the provisions of
this chapter, or with the terms and conditions of its license, or if for
any other reason the continuance of such license shall not be deemed
conducive to the interests of legitimate racing, the [board] COMMISSION,
upon its own initiative or upon complaint of the jockey club, in the
case of race courses to be used for running races, or upon the complaint
of the national steeplechase and hunt association in the case of race
courses to be used for steeplechases, shall have the power to cancel and
revoke such license. Written notice of such complaint shall be given to
such corporation by [said board] THE COMMISSION within five days after
receiving such complaint, or after determining to take action, which
notice shall specify a time and place of hearing thereon. If the [board]
COMMISSION cancels and revokes such license, THEN all powers exercised
under section two hundred three of this article by the corporation to
which such license was granted shall cease and determine.
§ 14. Section 218 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 140 of the laws of 2008, is amended to read
as follows:
§ 218. Stewards at race meetings. There shall be three stewards to
supervise each running race meeting conducted pursuant to sections two
hundred five and two hundred six of this article. One of such stewards
shall be the official steward of the [board] COMMISSION, one shall be
appointed by the jockey club or by the national steeplechase and hunt
association as may be appropriate, and one shall be appointed by the
corporation conducting such race meeting. Such stewards shall exercise
such powers and perform such duties at each race meeting as may be
prescribed by the rules of the [state racing and wagering board] COMMIS-
SION. During the absence or inability to act of an official steward of
the [board] COMMISSION, or in the event of the failure or inability to
appoint either of the other two stewards, the powers and duties of such
steward shall be exercised and performed without compensation by a
member of the [board] COMMISSION designated by the [board] COMMISSION
for that purpose.
§ 15. Section 219 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 219. Advertising or promotional material. Notwithstanding any other
provision of law, rule or regulation nothing herein shall be deemed to
authorize the stewards or the [racing and wagering board] COMMISSION to
promulgate any rule or regulation [which] THAT would prohibit a jockey
from wearing any advertising or promotional material on his or her
clothing. The wearing of such advertising or promotional material [will]
SHALL be permitted only when the owner of a horse for whom such jockey
is riding provides the jockey with prior written authorization. Notwith-
standing the foregoing, when a corporation, company or any other entity
sponsors a race or race day at any franchised corporation or any racing
association or corporation, such racing association may prohibit a jock-
ey from wearing advertising material that represents a competitor of
such sponsoring corporation, company or other entity.
§ 16. Subdivisions 1, 2 and 3 of section 220 of the racing, pari-mutu-
el wagering and breeding law, subdivision 1 as amended by chapter 140 of
the laws of 2008 and subdivisions 2 and 3 as amended by chapter 18 of
the laws of 2008, are amended to read as follows:
1. For the purpose of maintaining a proper control over race meetings
conducted pursuant to sections two hundred five and two hundred six of
S. 7639 8
this article, the [state racing and wagering board] COMMISSION shall
license owners, which term shall be deemed to include [part owners]
PART-OWNERS and lessees, trainers, assistant trainers and jockeys, jock-
ey agents, stable employees, and such other persons as the [board]
COMMISSION may by rule prescribe at running races and at steeplechases,
provided, however, that no such license shall be required for seasonal
employees hired solely to work for no longer than six weeks during the
summer meet at Saratoga racetrack. In the event that a proposed licensee
is other than a natural person, the [board] COMMISSION shall require by
regulation disclosure of the names and addresses of all owners of an
interest in such entity. The [board] COMMISSION may retain, employ or
appoint such officers, employees and agents, as it may deem necessary to
receive, examine and make recommendations, for the consideration of the
[board] COMMISSION, in respect of applications for such licenses;
prescribe their duties in connection therewith, and fix their compen-
sation therefor within the limitations prescribed by law. Each applicant
for a license shall pay to the [board] COMMISSION an annual license fee
as follows: owner's license, if a renewal, fifty dollars, and if an
original application, one hundred dollars; trainer's license, thirty
dollars; assistant trainer's license, thirty dollars; jockey's license,
fifty dollars; jockey agent's license, twenty dollars; and stable
employee's license, five dollars. Each applicant may apply for a [two
year] TWO-YEAR or [three year] THREE-YEAR license by payment to the
[board] COMMISSION of the appropriate multiple of the annual fee. The
[board] COMMISSION may by rule fix the license fees to be paid by other
persons required to be licensed by the rules of the [board] COMMISSION,
not to exceed thirty dollars per category. The application for the
license shall be in writing in such form as the [board] COMMISSION may
prescribe, and contain such information as the [board] COMMISSION may
require. The [board] COMMISSION shall henceforth cause all applicants
for licenses to be photographed and fingerprinted and may issue iden-
tification cards to licensees. Such fingerprints shall be submitted to
the division of criminal justice services for a state criminal history
record check, as defined in subdivision one of section three thousand
thirty-five of the education law, and may be submitted to the federal
bureau of investigation for a national criminal history record check. A
fee equal to the actual cost of issuance shall be charged for the
initial issuance of such identification cards. Each such license unless
revoked for cause shall be for the period of no more than one, two or
three years, determined by rule of the [board] COMMISSION, expiring on
the applicant's birth date. Licenses current on the effective date of
this provision shall not be reduced in duration by this provision. An
applicant who applies for a license that, if issued, would take effect
less than six months prior to the applicant's birth date may, by payment
of a fifty percent higher fee, receive a license which shall not expire
until the applicant's second succeeding birth date. All receipts of the
[board] COMMISSION derived from the operation of this section shall be
paid by it into the state treasury on or before the tenth day of each
month. All officials connected with the actual conduct of racing shall
be [approved] SUBJECT TO APPROVAL by the [board] COMMISSION.
2. If the [state racing and wagering board shall find] COMMISSION
FINDS that the financial responsibility, experience, character and
general fitness of the applicant are such that the participation of such
person will be consistent with the public interest, convenience or
necessity and with the best interests of racing generally in conformity
with the purposes of this article, [it] THE COMMISSION shall thereupon
S. 7639 9
grant a license. If the [board shall find] COMMISSION FINDS that the
applicant fails to meet any of said conditions, it shall not grant such
license and it shall notify the applicant of the denial.
The [board] COMMISSION may refuse to issue or renew a license, or may
suspend or revoke a license issued pursuant to this section, if [it
shall find] THE COMMISSION FINDS that the applicant, or any person who
is a partner, agent, employee or associate of the applicant, has been
convicted of a crime in any jurisdiction, or is or has been associating
or consorting with any person who has or persons who have been convicted
of a crime or crimes in any jurisdiction or jurisdictions or is consort-
ing or associating with or has consorted or associated with bookmakers,
touts, or persons of similar pursuits, or has himself OR HERSELF engaged
in similar pursuits, or is financially irresponsible, or has been guilty
of or attempted any fraud or misrepresentation in connection with
racing, breeding, or otherwise, or has violated or attempted to violate
any law with respect to racing in any jurisdiction or any rule, regu-
lation or order of the [board] COMMISSION, or shall have violated any
rule of racing which shall have been approved or adopted by the [board]
COMMISSION, or has been guilty of or engaged in similar, related or like
practices.
3. No license shall be revoked unless such revocation is by [board]
COMMISSION determination upon a meeting of the [board] COMMISSION. Prior
to revocation or suspension of license a licensee shall be entitled to a
hearing on notice except that summary suspension where emergency action
is required in accordance with subdivision three of section four hundred
one of the state administrative procedure act may be ordered. In the
conduct of such hearing the [board] COMMISSION shall not be bound by
technical rules of evidence but all evidence offered before the [board]
COMMISSION shall be reduced to writing, and such evidence together with
the exhibits, if any, and the findings of the [board] COMMISSION, shall
be permanently preserved and shall constitute the record of the [board]
COMMISSION in such case. Such hearing may be presided over by the
[chairman] CHAIR of the [board] COMMISSION or by any member or by an
officer of the [board] COMMISSION designated by the [chairman] CHAIR in
writing to act as hearing officer and such person or persons may issue
subpoenas for witnesses and administer oaths to witnesses. The hearing
officer, at the conclusion of the hearing shall make findings [which]
THAT, if concurred in by [two members] A MAJORITY of the [board] COMMIS-
SION, shall become the findings of the [board] COMMISSION. The action of
the [board] COMMISSION in refusing, suspending or in revoking a license
shall be reviewable in the supreme court in the manner provided by the
provisions of article seventy-eight of the civil practice law and rules.
§ 17. Section 221 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 325 of the laws of 2004 and as renumbered by
chapter 18 of the laws of 2008, paragraph a of subdivision 2 as amended
by chapter 18 of the laws of 2008, paragraph b of subdivision 2 as added
by chapter 325 of the laws of 2004, subdivision 6 as amended by section
1 of part SS of chapter 59 of the laws of 2017, the opening paragraph of
subdivision 7 as amended by section 1 of part ZZ of chapter 59 of the
laws of 2019, subdivision 7 as amended by section 2 of part SS of chap-
ter 59 of the laws of 2017 and subdivision 12 as amended and subdivi-
sions 13 and 14 as added by section 3 of part SS of chapter 59 of the
laws of 2017, is amended to read as follows:
§ 221. New York Jockey Injury Compensation Fund, Inc. 1. There is
created a not-for-profit corporation to be known as The New York Jockey
Injury Compensation Fund, Inc. and referred to in this section as "the
S. 7639 10
fund". To the extent that the provisions of the not-for-profit corpo-
ration law do not conflict with the provisions of this article, or the
plan of operation of the fund hereunder, the not-for-profit corporation
law shall apply to the fund and the fund shall be a type C corporation
pursuant to the not-for-profit corporation law. If an applicable
provision of this article or the plan of operation of the fund hereunder
relates to a matter embraced in a provision of the not-for-profit corpo-
ration law but is not in conflict therewith, both provisions shall
apply. The fund shall perform its functions under the plan of operation
established and approved under this section and shall exercise its
powers through a board of directors established under this section.
2. a. The board of directors shall consist of seven members, six of
whom are to be selected from the general membership of the fund in a
manner and for terms to be prescribed by the initial fund board. For the
purposes of establishing and organizing the fund, at least one hundred
fifty days prior to the date that this article shall take effect, the
boards of directors of the horsemen's organizations representing at
least fifty-one percent of the horsemen utilizing the facilities of any
racing corporation, shall designate six members who shall serve as the
initial board of directors of the fund. The seventh member shall be
elected every two years on the second Tuesday of June, or as designated
by the fund, pursuant to paragraph b of this subdivision by a vote of
jockeys and apprentice jockeys duly licensed pursuant to this article or
article four of this chapter. The members of the board shall elect annu-
ally from the members a chairperson and a vice-chairperson who shall act
as chairperson in the absence of the chairperson. Each member of the
board of directors shall have equal voting rights with the others.
b. (i) The election of the seventh board member shall be conducted by
an election administrator selected by the fund no later than November
fifteenth of the year preceding the election. The fund shall inform the
[state racing and wagering board] COMMISSION of its selection thereof.
The fund shall enter into a contract with the election administrator at
least one hundred twenty days prior to the date of the election. The
fund shall be responsible for costs associated with the contract with
the election administrator.
(ii) The election administrator may be the individual, organization,
or corporation under contract with the fund to provide management
services as of November fifteenth of the year preceding the election.
The election administrator shall devise and provide nominating petitions
to candidates, shall validate such petitions upon submittal by verifying
the eligibility of the jockeys and apprentice jockeys to sign such
petitions, and shall be responsible for the printing, dissemination,
validation, and tabulation of ballots for such election. The [state
racing and wagering board] COMMISSION shall provide a list of all duly
licensed jockeys and apprentice jockeys to the fund for purposes of
validating nominating petitions and ballots. The election administrator
shall report the results of the election to the [state racing and wager-
ing board] COMMISSION, which shall then certify the election of the
seventh board member.
(iii) Any individual seeking election pursuant to this subdivision
shall provide a nominating petition containing the signatures of no
fewer than ten duly licensed jockeys or apprentice jockeys eligible to
sign such petition. To be eligible to sign such petition, a jockey or
apprentice jockey shall possess a valid jockey's license as of March
first in the year of the election. Such petitions may be signed by
eligible jockeys or apprentice jockeys beginning April first of an
S. 7639 11
election year and shall be returned to the election administrator for
validation no later than the first Monday of May of an election year. If
a jockey's license expires between March second and the first Monday of
May and has not been renewed by the latter date, the election adminis-
trator shall invalidate such jockey's signature on the nominating peti-
tion so submitted.
(iv) To be eligible to vote in the election, jockeys and apprentice
jockeys must possess a valid jockey's license at least thirty days prior
to the date of the election. If such jockey's license expires during the
thirty days preceding the election and such license has not been renewed
as of the date of the election, such jockey shall not be eligible to
vote.
(v) If, following an election of the seventh board member, such member
is unable to discharge his or her duties as a board member or is other-
wise unable to complete his or her term, the fund's chairperson shall
offer the seventh board member's position to the candidate who received
the highest total number of votes following that received by the elected
board member during the election. If such candidate declines to accept
such position, the chairperson shall offer the position to each remain-
ing candidate in descending order of the total number of votes received
by each such candidate during the election until a candidate has
accepted the position. If none of the remaining candidates has accepted
the position, the chairperson may appoint an interim member to the posi-
tion for such time as intervenes until a new seventh board member is
elected.
3. Members of the board of directors shall serve without compensation
for their services, but shall be entitled to reimbursement for actual
and necessary expenses incurred in the performance of their official
duties.
4. Members of the board of directors, except as otherwise provided by
law, may engage in private employment, or in a profession or business.
5. The affirmative vote of four members of the board of directors
shall be necessary for the transaction of any business or the exercise
of any power or function of the fund. The fund may delegate to one or
more of its members, or its officers, agents or employees, such powers
and duties as it may deem proper.
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]
commission, 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
workers' compensation board, including, without limitation, subdivision
three of section fifty of the workers' compensation law.
7. 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-
S. 7639 12
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] THAT
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] PERCENT; provided, however, for
two thousand nineteen 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 article to pay
the annual costs required by this section and the funds from such
account shall not count against the two [per centum] PERCENT 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] PERCENT after
April first, two thousand twenty. In the cases of multiple ownerships
and limited racing appearances, the fund shall equitably adjust the sum
required.
The [gaming] commission shall, as a condition of racing, require any
racing corporation or any quarterhorse racing association or corporation
authorized under this chapter to conduct pari-mutuel betting at a race
meeting or races run thereat, to require that each trainer [utilizing]
USING the facilities of such association or corporation and each owner
racing a horse shall place or have placed on deposit with the horsemen's
bookkeeper of such racing association or corporation, an amount to be
established and paid in a manner to be determined by the fund.
Should the fund determine that the amount [which] THAT has been
collected in the manner prescribed is inadequate to pay the annual costs
required by this section, it shall notify the [gaming] commission of the
deficiency and the amount of the additional sum or sums necessary to be
paid by each owner and/or trainer in order to cover such deficiency. The
[gaming] commission shall, as an additional condition of racing, direct
any racing corporation or any quarterhorse racing association or corpo-
ration authorized under this chapter to conduct pari-mutuel betting at a
race meeting or races run thereat, to require each trainer and owner to
place such additional sum or sums on deposit with the respective
horsemen's bookkeeper.
All amounts collected by a horsemen's bookkeeper pursuant to this
section shall be transferred to the fund created under this section and
shall be used by the fund to purchase workers' compensation insurance
for 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 at the election of the
fund, with the approval of the [gaming] commission, to secure workers'
compensation insurance for employees of licensed trainers or owners to
pay for any of its liabilities under section fourteen-a of the workers'
compensation law and to administer the workers' compensation program for
such jockeys, apprentice jockeys and exercise persons and, if approved
by the [gaming] commission, employees of licensed trainers or owners
required by this section and the workers' compensation law.
S. 7639 13
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 elect to have the sum required
to be paid by an owner or trainer pursuant to this section be subject to
an examination of workers' compensation claims attributable under the
fund to each such owner or trainer, including the frequency and severity
of accidents and injuries.
8. a. The fund shall submit to the [state racing and wagering board]
COMMISSION a plan of operation and any amendments thereto necessary or
suitable to assure the fair, reasonable and equitable administration of
the fund. Such amendments, if any, relating to the assessment of the
costs of insurance for the subsequent year, other than deficiency
assessments, shall be submitted to the [board] COMMISSION no later than
November fifteenth of each year. The plan of operation and any amend-
ments thereto shall become effective upon approval in writing by the
[board] COMMISSION, and shall be published by the fund upon such
approval in one or more trade publications likely to be obtained by
owners and trainers.
b. If the fund fails to submit a suitable plan of operation within one
hundred eighty days following the effective date of this section or if
at any time thereafter the fund fails to submit suitable amendments to
the plan, the [board] COMMISSION shall, after notice and hearing, adopt
and promulgate such reasonable rules as are necessary or advisable to
effectuate the provisions of this article. Such rules shall continue in
force until modified by the [board] COMMISSION or superseded by a plan
submitted by the fund and approved by the [board] COMMISSION.
c. The plan of operation shall constitute the by-laws of the fund and
shall, in addition to requirements enumerated elsewhere in this article:
(i) [Establish] ESTABLISH procedures for handling the assets of the
fund[.];
(ii) [Establish] ESTABLISH regular places and times for meetings of
the board of directors[.];
(iii) [Establish] ESTABLISH procedures for records to be kept of all
financial transactions of the fund, its agents and the board of direc-
tors[.];
(iv) [Establish] ESTABLISH a formula for determining the appropriate
amount of the assessments under this section[.];
(v) [Establish] ESTABLISH the rules and procedures to govern the
conduct of an election held pursuant to paragraph b of subdivision two
of this section[.]; AND
(vi) [Contain] CONTAIN such additional provisions as the [board]
COMMISSION or fund may deem necessary or proper for the execution of the
powers and duties of the fund.
9. The fund shall be subject to examination and regulation by the
[board] COMMISSION. The fund shall submit to the [board] COMMISSION not
later than May first of each year, a financial report for the preceding
calendar year in a form approved by the [board] COMMISSION and a report
of its activities during the preceding calendar year.
10. The fund shall be exempt from payment of all fees and all taxes
levied by this state or any of its subdivisions, except taxes levied on
real property.
11. The fund shall purchase such insurance as necessary to protect any
director, officer, agent or other representative from liability.
12. For purposes of this section, the term "employees of licensed
trainers or owners" shall have the same meaning as subdivision twenty-
four of section two of the workers' compensation law.
S. 7639 14
13. a. There is created a racing safety committee to review the risk
management report submitted to the commission by the fund on or about
September thirtieth, two thousand sixteen and to make non-binding recom-
mendations for the implementation of the safety proposals and initi-
atives set forth in such report. Such committee shall consist of seven
members, each to serve a term of three years, with one member each
appointed by:
(i) the fund;
(ii) the [gaming] commission;
(iii) the franchised corporation;
(iv) the racing association or corporation licensed pursuant to this
article or article four of this chapter to operate the racing and train-
ing facilities at Finger Lakes racetrack;
(v) the horsemen's organization representing at least fifty-one
percent of the owners and trainers using the facilities of the fran-
chised corporation;
(vi) the horsemen's organization representing at least fifty-one
percent of the owners and trainers using the facilities of the Finger
Lakes racetrack; and
(vii) the Jockeys' Guild.
The member of the racing safety committee appointed by the fund shall
serve as chairperson and the member of the racing safety committee
appointed by the commission shall serve as vice-chairperson. Members of
the racing safety committee shall have equal voting rights.
b. The racing safety committee shall meet within ninety days following
the effective date of this subdivision to review and discuss the imple-
mentation of the recommendations contained in the risk management report
submitted to the [gaming] commission by the fund on or about September
thirtieth, two thousand sixteen. The racing safety committee shall meet
on or after July first, two thousand seventeen, and at least annually
thereafter, to review the workers' compensation loss information and the
status of safety-related findings and recommendations and to develop an
annual strategic plan to address identified safety issues.
c. The members appointed pursuant to subparagraph (iii) and (iv) of
paragraph a of this subdivision, in consultation with the other members
of the racing safety committee, shall:
(i) Within one hundred eighty days following the effective date of
this subdivision, for each track, develop safety rules for training
activities to be documented and communicated, in both English and Span-
ish, to jockeys, apprentice jockeys, and exercise persons licensed
pursuant to this article or article four of this chapter who are employ-
ees under section two of the workers' compensation law, and at the
election of the fund, with the approval of the [gaming] commission,
employees of licensed trainers or owners. Such safety rules shall
include, but not be limited to, proper usage of personal protective
equipment, required response to loose horses, prohibition of cell phone
use while mounted on a horse, general requirements for jogging, gallop-
ing, breezing, ponying a horse, and starting gate safety protocols.
Refresher training related to such safety rules shall be required at the
start of each meet.
(ii) Prior to the start of each meet, following the effective date of
this subdivision, meet with trainers or their representatives to discuss
and address identified safety issues.
(iii) Within one hundred eighty days following the effective date of
this subdivision, for each track, develop a written, documented emergen-
cy response plan to address response protocols to on-track accidents and
S. 7639 15
incidents, which, at a minimum, shall include detailed information
regarding roles and responsibilities for individuals who are responsible
for track-related accidents and incidents, including, but not limited
to, outriders, emergency medical technicians/paramedics, ambulance driv-
ers, security, and veterinary staff and clockers.
(iv) Within two hundred ten days following the effective date of this
subdivision, communicate the emergency response plan to all on-track
personnel as part of new hire orientation and job assignment.
(v) Within two hundred ten days following the effective date of this
subdivision, and at least once annually thereafter, for each track,
conduct a mock emergency response drill for on-track accidents prior to
the opening of each race meet. Such emergency response drill shall be
filmed and used for education and training purposes for personnel,
including in new hire orientation, and to assess the performance of
individuals involved in the emergency response.
(vi) Within one hundred eighty days following the effective date of
this subdivision, upgrade the current level of emergency medical respon-
ders from emergency medical technicians to paramedics.
14. The fund and the [gaming] commission shall have such power as is
necessary to implement the provisions of this section.
§ 18. Subdivision 1 and the opening paragraph and paragraph f of
subdivision 2 of section 221-a of the racing, pari-mutuel wagering and
breeding law, as amended by section 1 of part OO of chapter 60 of the
laws of 2016, are amended as follows:
1. A franchised corporation shall, as a condition of racing, establish
a program to administer the purchase of health insurance for eligible
jockeys.
Such program shall be funded through the deposit of one and one-half
percent of the gross purse enhancement amount from video lottery gaming
at a thoroughbred track pursuant to paragraph two of subdivision b and
paragraph one of subdivision f of section sixteen hundred twelve of the
tax law. The franchised corporation shall establish a segregated account
for the receipt of these monies and these monies shall remain separate
from any other funds. Any corporation or association licensed pursuant
to this article shall pay into such account any amount due within ten
days of the receipt of revenue pursuant to section sixteen hundred
twelve of the tax law. Any portion of such funding to the account unused
during a calendar year, less an amount sufficient to cover anticipated
premium liabilities over the next sixty days, shall be returned on a pro
rata basis in accordance with the amounts originally contributed and
shall be used for the purpose of enhancing purses at such tracks.
Provided, however, if a corporation or association licensed pursuant to
this article provides an alternative source of funding for this program,
an amount equal to this alternative funding, but not in excess of the
amount originally contributed during the year from the gross purse
enhancement amount from video lottery gaming attributable to such corpo-
ration or association, shall be returned to the corporation or associ-
ation and used for the purpose of enhancing purses at such track.
Provided, further, any such alternative source of funding must be
approved by the [gaming] commission.
The franchised corporation shall enter into a memorandum of under-
standing with the jockey's organization that represents at least fifty-
one percent of eligible active jockeys establishing a plan of operation
for the program, provided that such memorandum of understanding shall be
approved by the [gaming] commission upon a determination that such memo-
randum of understanding meets the statutory requirements of this section
S. 7639 16
and is in the best interest of racing and shall include, but not be
limited to, the following conditions:
f. the [gaming] commission shall have the following powers:
(i) to rule on eligibility in the event of a denial of coverage pursu-
ant to paragraph e of this subdivision. In the event of a denial of
coverage, such individual denied eligibility may appeal to the [gaming]
commission;
(ii) to make a determination if an individual would have qualified
pursuant to subparagraph (i) of paragraph e of this subdivision in the
event that the individual suffers an injury and contends that he or she
would have qualified had they not suffered such injury; and
(iii) to audit the books and records of the program.
§ 19. Section 225 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 225. Registration of race horses. The true name, sex and age, and
also the pedigree, unless such pedigree is unknown, of every horse,
mare, gelding, colt or filly shall be registered with the jockey club,
United States trotting association, American quarter horse association,
the national steeplechase and hunt association or such other entity as
the [racing and wagering board] COMMISSION may designate before it shall
be eligible to compete in any race conducted under a license or fran-
chise of the [state racing and wagering board] COMMISSION and such name
shall continue to be its true name unless and until the same shall be
changed according to the rules and regulations of such organization. The
class to which any such animal belongs for the purpose of the entry or
competition in any race shall be determined by the public performance
thereof in former contests or trials of speed, as prescribed by the
printed rules of the person, association or corporation sponsoring such
race.
§ 20. Section 228 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008 and the opening para-
graph of subdivision 2 as amended by chapter 122 of the laws of 2019, is
amended to read as follows:
§ 228. Pension plans for backstretch employees. 1. The [state racing
and wagering board] COMMISSION may, as a condition of racing, require
all trainers and owners engaged in racing at meetings of any corporation
subject to its jurisdiction to participate in a pension plan or trust
established, or which may be established, by trainers and owners for the
benefit of stable employees (backstretch workers) regularly employed at
such meetings; [provided that the board shall find] IF THE COMMISSION
FINDS that participation in the plan by all such owners and trainers is
in the best interests of racing and [provided,] further FINDS, [that the
board shall find,] based upon certification by the trustees of such
plan, that at least eighty percent of such trainers and owners have
agreed in writing to participate, or are, in fact, participating there-
in.
2. The [New York state gaming] commission shall, as a condition of
racing, require any franchised corporation and every other corporation
subject to its jurisdiction to withhold one percent of all purses,
except that for the franchised corporation, starting on September first,
two thousand seven and continuing through August thirty-first, two thou-
sand twenty, two percent of all purses shall be withheld, and, in the
case of the franchised corporation, to pay such sum to the horsemen's
organization or its successor that was first entitled to receive
payments pursuant to this section in accordance with rules of the
S. 7639 17
commission adopted effective November third, nineteen hundred eighty-
three representing at least fifty-one percent of the owners and trainers
[utilizing] USING the facilities of such franchised corporation, on the
condition that such horsemen's organization shall expend as much as is
necessary, but not to exceed one-half of one percent of such total sum,
to acquire and maintain the equipment required to establish a program at
a state college within this state with an approved equine science
program to test for the presence of steroids in horses, provided further
that the qualified organization shall also, in an amount to be deter-
mined by its board of directors, annually include in its expenditures
for benevolence programs, funds to support an organization providing
services necessary to backstretch employees, and, in the case of every
other corporation, to pay such one percent sum of purses to the
horsemen's organization or its successor that was first entitled to
receive payments pursuant to this section in accordance with rules of
the commission adopted effective May twenty-third, nineteen hundred
eighty-six representing at least fifty-one percent of the owners and
trainers [utilizing] USING the facilities of such corporation.
In either case, any other horsemen's organization may apply to the
[board] COMMISSION to be approved as the qualified organization to
receive payment of the one percent of all purses by submitting to the
[board] COMMISSION proof of both, that (i) it represents more than
fifty-one percent of all the owners and trainers [utilizing] USING the
same facilities and (ii) the horsemen's organization previously approved
as qualified by the [board] COMMISSION does not represent fifty-one
percent of all the owners and trainers [utilizing] USING the same facil-
ities. If the [board] COMMISSION is satisfied that the documentation
submitted with the application of any other horsemen's organization is
conclusive with respect to [items] SUBPARAGRAPHS (i) and (ii) of this
paragraph, [it] THE COMMISSION may approve the applicant as the quali-
fied recipient organization.
In the best interests of racing, upon receipt of such an application,
the [board] COMMISSION may direct the payments to the previously quali-
fied horsemen's organization to continue uninterrupted, or it may direct
the payments to be withheld and placed in interest-bearing accounts for
a period not to exceed ninety days, during which time the [board]
COMMISSION shall review and approve or disapprove the application. Funds
held in such manner shall be paid to the organization approved by the
[board] COMMISSION. In no event shall the [board] COMMISSION accept
more than one such application in any calendar year from the same
horsemen's organization.
The funds authorized to be paid by the [board] COMMISSION are to be
used exclusively for the benefit of those horsemen racing in New York
state through the administrative purposes of such qualified organiza-
tion, benevolent activities on behalf of backstretch employees, and for
the promotion of equine research.
§ 21. Section 229 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 229. Backstretch employees drug and alcohol rehabilitation eligibil-
ity. Any licensed not-for-profit organization providing drug and alcohol
rehabilitation services to backstretch employees shall receive informa-
tion concerning available funding and existing programs from a coordi-
nated effort of the [board] COMMISSION and division of substance abuse
services.
S. 7639 18
§ 22. Section 232 of the racing, pari-mutuel wagering and breeding
law, as separately amended by chapter 18 and chapter 530 of the laws of
2008, is amended to read as follows:
§ 232. License to conduct pari-mutuel betting at race meetings for
running races or steeplechases. 1. Any corporation, at the time of
making application to the [state racing and wagering board] COMMISSION
for a license to conduct a race course or a race meeting for running
races or steeplechases, or at such subsequent time as the [board]
COMMISSION may permit, may apply to such [board] COMMISSION for a
license to conduct at such race meeting pari-mutuel betting on the races
to be run thereat. The [board] COMMISSION may prescribe the form in
which such application shall be made and the information to be furnished
by such corporation. If the [board be] COMMISSION IS satisfied from such
application, or from other sources of information, that the racetrack of
such corporation for which such application is made has facilities and
equipment sufficient to accommodate its probable number of patrons, [it]
THE COMMISSION shall issue to such corporation a license to conduct
pari-mutuel betting in the manner and subject to the conditions
prescribed by this chapter, at the racetrack described in such license
on the days specified in such license.
2. The refusal of an application for such license shall be preceded by
notice and an opportunity to be heard. In the conduct of such hearing
the [board] COMMISSION shall not be bound by technical rules of evidence
but all evidence offered before the [board] COMMISSION shall be reduced
to writing, and such evidence together with the exhibits, if any, and
the findings of the [board] COMMISSION, shall be permanently preserved
and shall constitute the record of the [board] COMMISSION in such case.
Such hearing may be presided over by the [chairman] CHAIR of the [board]
COMMISSION or by any member or by an officer of the [board] COMMISSION
designated by the [chairman] CHAIR in writing to act as hearing officer
and such person or persons may issue subpoenas for witnesses and admin-
ister oaths to witnesses. The hearing officer, at the conclusion of the
hearing shall make findings which, if concurred in by [two members] A
MAJORITY of the [board] COMMISSION, shall become the findings of the
[board] COMMISSION. The action of the [board] COMMISSION in refusing a
license shall be reviewable in the supreme court in the manner provided
by the provisions of article seventy-eight of the civil practice law and
rules.
§ 23. Section 233 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 233. Bond required of corporation conducting pari-mutuel betting. 1.
Every corporation franchised or licensed by the [state racing and wager-
ing board] COMMISSION to conduct pari-mutuel betting, annually and
before the opening of any race meeting, shall execute and file with the
state comptroller, a bond to the state in a penalty to be fixed by the
commissioner of taxation and finance not exceeding five hundred thousand
dollars, with sureties approved by the attorney general, that it will
keep its books and records and make reports as required by this chapter,
that it will pay to the state all taxes imposed by this chapter, that it
will distribute to the patrons of pari-mutuel pools conducted by it all
sums due upon presentation of winning tickets held by them, and that it
will otherwise comply with all the provisions of this chapter in
relation to the conduct of races and of pari-mutuel betting on its race-
track.
S. 7639 19
2. In addition hereto, every such corporation first licensed or fran-
chised after January first, nineteen hundred eighty-six, annually and
before the opening of any race meeting shall execute and file with the
state comptroller, a bond to the state in a penalty to be fixed by the
[board] COMMISSION not exceeding five hundred thousand dollars, with
sureties approved by the attorney general, that [it] SUCH CORPORATION
will make all purse payments advertised and offered as premiums, prizes
or awards to owners of horses competing in races at such track within
one week of such race, or, if such payment is ordered held by the
[board] COMMISSION pending investigation by it of any race, into a trust
account pending completion of such investigation.
§ 24. Section 234 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 234. Place and manner of conducting pari-mutuel betting. Any corpo-
ration licensed or franchised to conduct pari-mutuel betting at a horse
race meeting shall provide a place or places within the race meeting
grounds or enclosure at which such licensee or franchisee shall conduct
the pari-mutuel system of betting by its patrons on the results of the
horse races at such meeting. Such place or places shall be provided with
necessary equipment for issuing or vending pari-mutuel tickets, and
adding machine equipment and a device capable of accurate and speedy
determination of the amount of money in each pool and on each horse and
the amount of award or dividend to winning patrons and displaying the
same to its patrons. Such place shall also be equipped with automatic or
hand-operated machinery for displaying on a mutuel indicator in plain
view of the public, the total amount of sales separately for straight,
place and show on every race and on each horse in such race. The machine
or mutuel indicator shall also display the approximate straight odds on
each horse in any race; the value of a two-dollar winning mutuel ticket,
straight, place and show, on the first three horses in any race; the
elapsed time of the race; the value of a two-dollar daily double ticket,
if a daily double be conducted; and any other information that may be
necessary for the guidance of the general public that the [state racing
and wagering board] COMMISSION may require. All such machines and equip-
ment must be approved by the [board] COMMISSION and the department of
taxation and finance before being used, but the [board] COMMISSION shall
not require the installation of any particular make of mechanical or
electrical equipment.
§ 25. Section 235 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 235. Rules for the conduct of pari-mutuel betting. 1. The [state
racing and wagering board] COMMISSION shall make rules regulating the
conduct of pari-mutuel betting, as authorized pursuant to this chapter.
2. The rules shall provide that all winning pari-mutuel tickets must
be presented for payment before April first of the year following the
year of their purchase and failure to present any such ticket within the
prescribed period of time shall constitute a waiver of the right to
participate in the award or dividend.
3. The department of taxation and finance is hereby charged with the
financial administration of pari-mutuel betting as herein described and
as supplemented by the rules and regulations of the [state racing and
wagering board] COMMISSION. The department of taxation and finance
shall have authority to prescribe the forms and the system of accounting
to be employed and through its representatives shall at all times have
S. 7639 20
access to the issuing or vending machines, the adding machines and all
other pari-mutuel betting equipment.
§ 26. Subdivisions 1, 2 and 3 of section 236 of the racing, pari-mutu-
el wagering and breeding law, subdivision 1 as amended by section 1 of
part BB of chapter 60 of the laws of 2016, and subdivisions 2 and 3 as
amended by chapter 18 of the laws of 2008, are amended to read as
follows:
1. Every corporation authorized under this chapter to conduct pari-mu-
tuel betting at a race meeting on races run thereat, except as provided
in section two hundred thirty-eight of this article with respect to the
franchised corporation, shall distribute all sums deposited in any pari-
mutuel pool to the holders of winning tickets therein, providing such
tickets be presented for payment before April first of the year follow-
ing the year of their purchase, less an amount that shall be established
and retained by such racing corporation of between fourteen to twenty
percent of the total deposits in pools resulting from regular on-track
bets and less sixteen to twenty-two percent of the total deposits in
pools resulting from multiple on-track bets and less twenty to thirty
percent of the total deposits in pools resulting from exotic on-track
bets and less twenty to thirty-six percent of the total pools resulting
from super exotic on-track bets, plus the breaks. The retention rate to
be established is subject to the prior approval of the [gaming] commis-
sion. Such rate may not be changed more than once per calendar quarter
to be effective on the first day of the calendar quarter. "Exotic bets"
and "multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter and breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. "Super exotic bets"
shall have the meaning set forth in section three hundred one of this
chapter. Of the amount so retained there shall be paid by such corpo-
ration to the department of taxation and finance as a reasonable tax by
the state for the privilege of conducting pari-mutuel betting on the
races run at the race meeting held by such corporation, which tax is
hereby levied, the following percentages of the total pool, plus fifty-
five percent of the breaks; the applicable rates for regular and multi-
ple bets shall be one and one-half percent; the applicable rates for
exotic bets shall be six and three-quarter percent and the applicable
rate for super exotic bets shall be seven and three-quarter percent.
Effective on and after September first, nineteen hundred ninety-four,
the applicable tax rate shall be one percent of all wagers, provided
that, an amount equal to one-half the difference between the taxation
rate for on-track regular, multiple and exotic bets as of December thir-
ty-first, nineteen hundred ninety-three and the rates on such on-track
wagers as herein provided shall be used exclusively for purses.
Provided, however, that for any twelve-month period beginning on April
first in nineteen hundred ninety and any year thereafter, each of the
applicable rates set forth above shall be increased by one-quarter of
one percent on all on-track bets of any such racing corporation that did
not expend an amount equal to at least one-half of one percent of its
on-track bets during the immediately preceding calendar year for
enhancements consisting of capital improvements as defined by section
two hundred thirty-seven of this article, repairs to its physical plant,
S. 7639 21
structures, and equipment used in its racing or wagering operations as
certified by the [gaming] commission to the commissioner of taxation and
finance no later than eighty days after the close of such calendar year,
and five special events at each track in each calendar year, not other-
wise conducted in the ordinary course of business, the purpose of which
shall be to encourage, attract and promote track attendance and encour-
age new and continued patronage, which events shall be subject to the
prior approval of the [gaming] commission for purposes of this subdivi-
sion. In the determination of the amounts expended for such enhance-
ments, the [gaming] commission may consider the immediately preceding
twelve-month calendar period or the average of the two immediately
preceding twelve-month calendar periods. Provided further, however, that
of the portion of the increased amounts retained by such corporation
above those amounts retained in nineteen hundred eighty-four, an amount
of such increase shall be distributed to purses in the same proportion
as commissions and purses were distributed during nineteen hundred
eighty-four as certified by the [gaming] commission. Such corporation in
the second zone shall receive a credit against the daily tax imposed by
this subdivision in an amount equal to four-tenths of one percent of
total daily pools resulting from the simulcast of such corporation's
races to licensed facilities operated by regional off-track betting
corporations in accordance with section one thousand eight of this chap-
ter, provided however, that sixty percent of the amount of such credit
shall be used exclusively to increase purses for overnight races
conducted by such corporation; and, provided further, that in no event
shall such total daily credit exceed four-tenths of one percent of the
total daily pool of such corporation.
Such corporation shall pay to the New York state thoroughbred breeding
and development fund one-half of one percent of the total daily on-track
pari-mutuel pools from regular, multiple and exotic bets, and three
percent of super exotic bets. The corporation shall receive credit as a
reduction of the tax by the state for the privilege of conducting pari-
mutuel betting for the amounts, except amounts paid from super exotic
betting pools, paid to the New York state thoroughbred breeding and
development fund after January first, nineteen hundred seventy-eight.
Such corporation shall distribute to purses an amount equal to fifty
percent of any compensation it receives from simulcasting or from wager-
ing conducted outside the United States. Such corporation shall pay to
the [gaming] commission as a regulatory fee, which fee is hereby levied,
six-tenths of one percent of the total daily on-track pari-mutuel pools
of such corporation.
2. The balance of the retained percentage of such pool and of the
breaks shall be held by such corporation for its own use and purposes,
except that in addition to any payments to purses provided for in subdi-
vision one of this section, an amount equal to two and one-half [per
centum] PERCENT of the total pools resulting from on-track regular bets
and exotic bets and an amount equal to three and one-half [per centum]
PERCENT of the total pools resulting from on-track multiple bets and an
amount equal to twelve [per centum] PERCENT of on-track super exotic
bets shall be used exclusively for the purpose of increasing purses
(including stakes, premiums and prizes) awarded to horses in races
conducted by such corporation. Such two and one-half [per centum]
PERCENT and three and one-half [per centum] PERCENT shall be in addition
to (i) four and one-half [per centum] PERCENT of such total pools
resulting from regular and multiple wagers and five and one-half [per
centum] PERCENT of such total pools resulting from exotic wagers, or
S. 7639 22
(ii) the percentage of such total pools used for purses (including
stakes, premiums and prizes) during the year nineteen hundred eighty-
two, whichever is larger. Such percentage of the total pools mentioned
in this subdivision shall be used for purses (including stakes, premiums
and prizes) in races hereafter conducted by such corporation, and any
portion not so used during any year shall be so used during the follow-
ing year, failing which such portion shall be payable to the commission-
er of taxation and finance as additional tax. The [racing and wagering
board] COMMISSION shall report annually, on or before July first, to the
director of the budget, the [chairman] CHAIR of the senate finance
committee and the [chairman] CHAIR of the assembly ways and means
committee the extent to which such corporation [utilized] USED and
retained percentages and breakage for operations, maintenance, capital
improvements, advertising and promotion, administration and general
overhead and evaluate the effectiveness and make recommendations with
respect to the application of the reduced rates of taxation as provided
for in subdivision one of this section in accomplishing the objectives
stated therein. Such report shall also specify the amount of such
retained percentages and breakage used for investments not directly
related to racing activities and such amounts used to declare dividends
or other profit distributions, additions to capital stock, its sale and
transfer and additions to retained earnings. Such reports shall also
include an analysis of any such agreements or proposals to conduct or
otherwise expand wagers authorized under article ten of this chapter and
present its conclusions with respect to the conduct of such wagering,
the nature of such proposals and agreements, and recommendations to
ensure the future maintenance of the intent of this article.
3. Tax rates in event of a failure to maintain pari-mutuel racing
activity. a. Notwithstanding any other provision of this section to the
contrary, for any calendar year commencing on or after January first,
nineteen hundred eighty-nine, in which a racing corporation in zone two
does not conduct a minimum number of pari-mutuel programs and pari-mutu-
el races at its facilities equal to at least ninety [per centum] PERCENT
of the programs and races so conducted during nineteen hundred eighty-
five or during nineteen hundred eighty-six, whichever is less, in lieu
of the tax rates set forth in subdivision one of this section the appli-
cable pari-mutuel tax rates for such corporation with respect to
on-track pari-mutuel betting pools during such year shall be increased
by one [per centum] PERCENT of regular, multiple and exotic betting
pools. Notwithstanding the foregoing, no increase shall be proposed
unless such corporation has been afforded notice and opportunity to be
heard. The [racing and wagering board] COMMISSION shall promulgate rules
and regulations to implement the provisions relating to notice and hear-
ing.
b. The provisions of this subdivision shall not apply to a corporation
for any calendar year for which the [state racing and wagering board]
COMMISSION certifies to the commissioner of taxation and finance:
(i) by December fifteenth of the year immediately preceding such year,
that such corporation has been assigned for such year, from the programs
and races it requested, at least the minimum number of programs and
races prescribed in paragraph a of this subdivision, or, if fewer than
such number were assigned for such year, that the assignment of such
lesser number was for good cause due to factors beyond the control of
such corporation or because the [board] COMMISSION found that it would
be uneconomical or impractical for such corporation to be assigned the
prescribed number; and
S. 7639 23
(ii) by January thirty-first of the year immediately subsequent to
such year, that such corporation did conduct such number of programs and
races as were certified pursuant to subparagraph (i) of this paragraph,
or if it failed to conduct such number that such failure was for good
cause due to factors beyond its control or because the [board] COMMIS-
SION found it uneconomical or impractical for such corporation to
conduct such a number.
c. For any calendar year for which the [state racing and wagering
board] COMMISSION does not certify pursuant to the provisions of subpar-
agraph (i) of paragraph b of this subdivision with respect to a corpo-
ration, the tax imposed by this section shall be computed by substitut-
ing the provisions of paragraph a of this subdivision for the provisions
of subdivision one of this section and shall pay the tax so computed to
the commissioner of taxation and finance. In such computation and
payment, all other provisions of this section shall apply as if the
provisions of this paragraph and of paragraph a of this subdivision had
been incorporated in whole in subdivision one of this section.
d. For any calendar year for which the [state racing and wagering
board] COMMISSION does not certify pursuant to the provisions of subpar-
agraph (ii) of paragraph b of this subdivision with respect to a corpo-
ration, the tax required to be paid hereunder for such year shall be
equal to the difference between the tax imposed pursuant to paragraph a
of this subdivision and the tax imposed pursuant to the provisions of
subdivision one of this section less one-half of such difference in
recognition of purses [which] THAT were required to be paid, plus an
additional amount equal to ten [per centum] PERCENT of such tax in the
event of a willful failure to comply with the provisions of subparagraph
(ii) of paragraph b of this subdivision, and such corporation shall pay
the tax so computed to the commissioner of taxation and finance on or
before March fifteenth of the following year. Notwithstanding the
provisions of this subdivision, in the event that upon appeal from the
determination of the [state racing and wagering board] COMMISSION that
the certification provided in paragraph b of this subdivision will not
be made, it is finally determined that [such board was erroneous] THE
COMMISSION ERRED in failing to so certify and that any moneys received
by the commissioner of taxation and finance under paragraph c of this
subdivision were paid in error, the same shall be refunded at the rate
of interest of six percent per annum. Payment of such balance of tax
due, or the anticipation of such payment, shall not affect the determi-
nation of purses in the year in which such tax arises or in the year in
which such payment is made nor shall such payment in any other manner be
considered in any statutory or contractual calculation of purse obli-
gations.
e. Written notice of the certification of the [board] COMMISSION
pursuant to the provisions of paragraph b of this subdivision shall be
given by the [board] COMMISSION to the applicable corporation by the
dates therein specified. In like manner, written notice that such
certification will not be made shall be given by the [board] COMMISSION
to the commissioner of taxation and finance and the applicable corpo-
ration by such dates.
§ 27. Section 237 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 237. Capital improvements. 1. [Definitions.] For the purposes of
this section, [the following terms shall have the meanings set forth
unless the context requires a different meaning:
S. 7639 24
a. "Board" shall mean the New York state racing and wagering board.
b. "Capital] "CAPITAL improvement" shall mean any addition to,
replacement of or remodeling of the physical plant, structures and
equipment now or hereafter owned or leased by a racing corporation
[which] THAT is used or is to be used by such corporation in connection
with the conduct of horse race meetings, and shall include improvements
to land but not land itself.
2. (a) Any non-franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting on races run thereat, may
elect upon thirty days written notice to the [racing and wagering board]
COMMISSION to withhold from the pari-mutuel pool in addition to any
other amounts required by this section, one [per centum] PERCENT of the
total deposits in pools resulting from regular and multiple on-track
bets; provided, however, that any such corporation withholding pursuant
to this subdivision shall use at least fifty percent of such one [per
centum] PERCENT exclusively for capital improvements as defined in
subdivision one of this section subject to the rules and regulations of
the [racing and wagering board] COMMISSION. An amount, not to exceed
fifty percent of such one [per centum] PERCENT, may be used for adver-
tising and promotion expenses subject to the rules and regulations of
the [board] COMMISSION. For the purposes of this paragraph the term
"advertising" shall be limited to paid advertising through radio, tele-
vision, the print media, direct mail or billboards. Promotions shall
mean activities [which] THAT are intended to increase the attendance at,
or visibility of, any such corporation and shall include premium [give-
aways] GIVEAWAYS, prizes, free admission, free parking, free programs,
additional monies for purses or other activities of a promotional nature
[which] THAT stimulate [on track] ON-TRACK attendance. In no event shall
this section be construed to permit the payment of salaries to employees
of any such corporation who are engaged in advertising or promotional
activities, provided, however, that monies credited to such capital
improvement account on or before July first, nineteen hundred ninety-
six, as certified by the [board] COMMISSION, shall not be expended for
any such advertising and promotion as defined herein. Such election
shall terminate upon thirty days written notice to the [board] COMMIS-
SION.
(b) At least once annually, prior to approving any plan for the
expenditure of such capital improvement funds pursuant to this section,
the [board] COMMISSION shall, together with the track operator and
representatives of the horsemen's organization representing owners and
trainers [utilizing] USING the facility and representatives of the jock-
eys organization representing licensed jockeys and apprentice jockeys
regularly riding or exercising at such facility, inspect the entire
facility, including the area commonly referred to as the backstretch, in
order to determine whether the capital improvement plan submitted by the
corporation for [board] COMMISSION approval includes adequate provision
for expenditures relating to the continued health, safety and well-being
of patrons, jockeys, backstretch personnel and the horses in their care.
After such inspection, if the [board] COMMISSION shall determine that
such proposed plan does not include adequate provision for repairs and
improvements necessary to correct any conditions that it has determined
to be unsafe or otherwise deleterious to the health and safety of
patrons, jockeys, employees or horses, the [board] COMMISSION shall
require the track operator to modify its capital improvement plan to
provide for the expenditure of funds for such repairs and improvements.
S. 7639 25
3. On or after July first, nineteen hundred ninety such amounts as may
be withheld for the purposes of this section shall be deposited in a
trust fund, kept and maintained by such corporation and administered by
a trustee approved by the [racing and wagering board] COMMISSION for the
purpose of lending such sums and any interest thereon on an unsecured
basis to such corporation exclusively for capital improvements as
defined in subdivision one of this section. All such amounts borrowed by
such corporation from such trust shall be forgiven and deemed satisfied
according to a schedule of depreciation deductions for federal and New
York state income tax purposes for such related capital improvements. It
is further provided that at such time as such corporation shall surren-
der its pari-mutuel license or franchise or fail to apply for a pari-mu-
tuel license for the succeeding year by December thirty-first of the
preceding year that the [racing and wagering board] COMMISSION may
declare the trust fund at an end and all sums therein deposited plus all
sums due or owing from such corporation to such trust shall be disposed
of in accordance with provisions of law to be enacted for such purpose.
Such trust shall be established and administered pursuant to the rules
and regulations of the [racing and wagering board] COMMISSION.
§ 28. Subdivision 1 and paragraph c of subdivision 2 of section 238 of
the racing, pari-mutuel wagering and breeding law, as amended by chapter
18 of the laws of 2008, paragraph (a) of subdivision 1 as amended by
section 9 of part HH of chapter 59 of the laws of 2019, paragraph (d) of
subdivision 1 as amended by section 2 of part BB of chapter 60 of the
laws of 2016 and subparagraph (i) of paragraph (d) of subdivision 1 as
amended by section 3 of part NN of chapter 59 of the laws of 2017, are
amended to read as follows:
1. (a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets [be] ARE presented for
payment before April first of the year following the year of their
purchase, less an amount [which] THAT shall be established and retained
by such franchised corporation of between twelve to seventeen [per
centum] PERCENT of the total deposits in pools resulting from on-track
regular bets, and fourteen to twenty-one [per centum] PERCENT of the
total deposits in pools resulting from on-track multiple bets and
fifteen to twenty-five [per centum] PERCENT of the total deposits in
pools resulting from on-track exotic bets and fifteen to thirty-six [per
centum] PERCENT of the total deposits in pools resulting from on-track
super exotic bets, plus the breaks. The retention rate to be established
is subject to the prior approval of the [gaming] commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
S. 7639 26
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five [per
centum] PERCENT of regular bets and four [per centum] PERCENT of multi-
ple bets plus twenty [per centum] PERCENT of the breaks; for exotic
wagers seven and one-half [per centum] PERCENT plus twenty [per centum]
PERCENT of the breaks, and for super exotic bets seven and one-half [per
centum] PERCENT plus fifty [per centum] PERCENT of the breaks.
For the period [June first, nineteen hundred ninety-five through
September ninth, nineteen hundred ninety-nine, such tax on regular
wagers shall be three per centum and such tax on multiple wagers shall
be two and one-half per centum, plus twenty per centum of the breaks.
For the period September tenth, nineteen hundred ninety-nine through
March thirty-first, two thousand one, such tax on all wagers shall be
two and six-tenths per centum and for the period] April first, two thou-
sand one through December thirty-first, two thousand twenty, such tax on
all wagers shall be one and six-tenths [per centum] PERCENT, plus, in
each such period, twenty [per centum] PERCENT of the breaks. Payment to
the New York state thoroughbred breeding and development fund by such
franchised corporation shall be one-half of one [per centum] PERCENT of
total daily on-track pari-mutuel pools resulting from regular, multiple
and exotic bets and three [per centum] PERCENT of super exotic bets
[provided, however, that for the period September tenth, nineteen
hundred ninety-nine through March thirty-first, two thousand one, such
payment shall be six-tenths of one per centum of regular, multiple and
exotic pools] and for the period April first, two thousand one through
December thirty-first, two thousand twenty, such payment shall be
seven-tenths of one [per centum] PERCENT of [such] REGULAR, MULTIPLE AND
EXOTIC pools.
(b) An amount equal to fifty [per centum] PERCENT of any compensation
received by a franchised corporation from simulcasting or from wagering
conducted outside the United States or outside New York state and within
the United States shall be distributed to purses, except with respect to
such compensation received from Connecticut which shall be computed as a
percentage of wagering handle in a manner approved by the [state racing
and wagering board] COMMISSION.
(c) An amount equal to fifty [per centum] PERCENT of any compensation
received by the franchised corporation from simulcasting or from wager-
ing conducted outside the United States shall be distributed to purses.
(d) (i) The pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-
fies the [gaming] commission by August fifteenth of each year that such
pari-mutuel tax rate is effective of its intent to conduct a race meet-
ing at Aqueduct racetrack during the months of December, January, Febru-
ary, March and April. For purposes of this paragraph such race meeting
shall consist of not less than ninety-five days of racing unless other-
wise agreed to in writing by the New York Thoroughbred Breeders Inc.,
the New York thoroughbred horsemen's association (or such other entity
as is certified and approved pursuant to section two hundred twenty-
eight of this article) and approved by the commission. Not later than
May first of each year that such pari-mutuel tax rate is effective, the
[gaming] commission shall determine whether a race meeting at Aqueduct
racetrack consisted of the number of days as required by this paragraph.
In determining the number of race days, cancellation of a race day
because of an act of God that the [gaming] commission approves or
S. 7639 27
because of weather conditions that are unsafe or hazardous [which] THAT
the [gaming] commission approves shall not be construed as a failure to
conduct a race day. Additionally, cancellation of a race day because of
circumstances beyond the control of such franchised corporation for
which the [gaming] commission gives approval shall not be construed as a
failure to conduct a race day. If the [gaming] commission determines
that the number of days of racing as required by this paragraph have not
occurred then the pari-mutuel tax rate in paragraph (a) of this subdivi-
sion shall revert to the pari-mutuel tax rates in effect prior to Janu-
ary first, nineteen hundred ninety-five.
(ii) Such franchised corporation shall pay to the [gaming] commission
as a regulatory fee, which fee is hereby levied, six-tenths of one
percent of the total daily on-track pari-mutuel pools of such franchised
corporation.
c. An amount equal to three [per centum] PERCENT of the total pools
resulting from on-track regular bets and an amount equal to [four per
centum] FIVE AND NINETY-FOUR HUNDREDTHS PERCENT of the total pools
resulting from on-track multiple and exotic bets, and twelve [per
centum] PERCENT of the total pools resulting from super exotic bets
shall be used exclusively for purses (including stakes, premiums and
prizes) awarded in races conducted by such franchised corporation
[provided, however, that during the period June first, nineteen hundred
ninety-five through September ninth, nineteen hundred ninety-nine, such
amounts for on-track regular and on-track multiple bets shall be two and
thirty-five hundredths per centum and five and one-half per centum,
respectively. During the period September tenth, nineteen hundred nine-
ty-nine through March thirty-first, two thousand one, such amounts for
on-track regular, multiple and exotic bets shall be five and four
hundredths per centum and for the period April first, two thousand one
through July twenty-fourth, two thousand one and after June thirtieth,
two thousand four, such amount for such bets shall be five and ninety-
four hundredths per centum and on and after July twenty-fifth, two thou-
sand one through June thirtieth, two thousand four, such amounts for all
on-track bets shall be five and forty hundredths per centum]. Any
portion of such [per centum] PERCENT not so used during any year shall
be so used during the following year, failing which [it] SUCH PORTION
shall be payable to the commissioner as additional tax. Such additional
tax shall be payable on or before April first in the year following the
year in which [it] SUCH PORTION is not so used and the provisions of
paragraph a of this subdivision shall be applicable thereto except as to
the time of payment.
§ 29. Section 240 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 240. Yearly audit. 1. The franchised corporation shall, at its own
expense, cause its annual financial statements to be audited in accord-
ance with generally accepted auditing standards by a qualified independ-
ent certified public accountant approved by the franchise oversight
board. The annual financial statements shall be prepared on a compar-
ative basis for the current and prior fiscal year and shall present the
financial position and results of operations in conformity with general-
ly accepted accounting principles. Three manually-signed copies of the
audited financial statements, together with the report thereon of the
franchised corporation's independent certified public accountant shall
be filed: one with the FRANCHISE OVERSIGHT board, one with such fran-
chised corporation and one with the office of the attorney general, not
S. 7639 28
later than ninety days following the end of the fiscal year. All such
annual financial statements and yearly audits shall be subject to audit
by the state comptroller and shall be public records.
2. The franchised corporation shall require the independent certified
public accountant to render the following additional reports:
a. a report on material weakness in accounting, internal controls, and
business and management practices discovered in the ordinary course of
preparing such audited financial statements. Whenever in the opinion of
the independent certified public accountant there exists no material
weaknesses in accounting, internal controls and business and management
practices, no report [will] SHALL be required; and
b. a report expressing the opinion of the independent certified public
accountant that based on his OR HER examination of the financial state-
ments the franchised corporation has followed, in all material respects,
during the period covered by his OR HER examination, the system of
accounting and internal control as filed with the FRANCHISE OVERSIGHT
board. Whenever in the opinion of the independent certified public
accountant the franchised corporation has deviated from the system of
accounting and internal controls filed with the FRANCHISE OVERSIGHT
board or the accounts, records, and control procedures examined are not
maintained by the franchised corporation in accordance with generally
accepted accounting standards the report shall enumerate such devi-
ations. The independent certified public accountant shall also report on
areas of the system no longer considered effective, and shall make
recommendations in writing regarding improvements in the system of
accounting and internal controls.
3. If the independent certified public accountant who was previously
engaged to audit the franchised corporation's financial statements
resigns or is dismissed as the franchised corporation's auditor, or
another independent certified public accountant is engaged as auditor,
the franchised corporation shall file a report with the FRANCHISE OVER-
SIGHT board within ten days following the end of the month in which such
event occurs, setting forth the following:
a. the date of such resignation, dismissal, or engagement;
b. whether in connection with the audits of the two most recent years
preceding such resignation, dismissal, or engagement there were any
disagreements with the former accountant on any matter of accounting
principles or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements if not resolved to the satisfac-
tion of the former accountant would have caused [him] SUCH ACCOUNTANT to
make reference in connection with [his] SUCH ACCOUNTANT'S report to the
subject matter of the disagreement; including a description of each such
disagreement. The disagreements to be reported include those resolved
and those not resolved; and
c. whether the former accountant's report on the financial statements
for any of the past two years contained an adverse opinion or disclaimer
of opinion or was qualified. The nature of such adverse opinion,
disclaimer of opinion, or qualification shall be described.
4. Upon direction of the FRANCHISE OVERSIGHT board, the franchised
corporation shall, at its own expense, cause its business and managerial
practices to be audited.
§ 30. Section 242 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 242. Races for horses bred in the state. The [state racing and
wagering board] COMMISSION in granting a license to a corporation to
S. 7639 29
conduct running or steeplechase races at its racetrack, if [it] THE
COMMISSION deems such requirement practicable, may require such corpo-
ration to provide for at least one race during the racing season in
which the entries shall be exclusively horses foaled in this state.
§ 31. Section 243 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 370 of the laws of 2011, is amended to read
as follows:
§ 243. Free or reduced fee passes, cards or badges. A corporation
licensed or franchised to conduct pari-mutuel betting on races run on
its racetrack may issue free passes, cards or badges to any qualified
person. A qualified person shall include, but need not be limited to,
officers and employees of the corporation conducting the race meeting,
members, officers and employees of the [state racing and wagering board]
COMMISSION, members and employees of the jockey club, members and
employees of the national steeplechase and hunt association, members of
turf organizations of other states and foreign countries, public offi-
cers engaged in the performance of their duties, persons actually
employed and accredited by the press to attend such meetings, owners,
stable managers, trainers, jockeys, jockey managers, grooms, concessio-
naires, spouses, domestic partners and children of owners, trainers and
jockeys, other persons whose actual duties require their presence at
such racetrack, and any other person or guest deemed appropriate by such
corporation. In addition, free or reduced fee passes, cards or badges
may be issued to the general public or segments of the general public in
connection with any promotional campaign or marketing program sponsored
by such corporation to increase attendance at live race meets. The issu-
ance of free passes, cards or badges shall be under the rules and regu-
lations of the [state racing and wagering board] COMMISSION.
§ 32. Section 244 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 244. Revocation of license or franchise. The [state racing and
wagering board] COMMISSION may revoke a license issued by it under this
chapter or a franchise granted pursuant to section two hundred six of
this article if the corporation to which such license or franchise shall
have been issued, or its officers or directors, shall not conduct racing
at its track, including pari-mutuel betting on races thereat, in accord-
ance with the terms and conditions of such license or franchise, with
the rules of [such board] THE COMMISSION and with the provisions of this
chapter; or if such corporation or its officers or directors shall know-
ingly permit on its grounds or within the enclosure of its racetrack,
lotteries, pool selling or bookmaking, or any other kind of gambling, in
violation of this chapter or of the penal law.
§ 33. Section 245 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 245. Hearing on refusal or revocation of license or franchise. If
the [state racing and wagering board shall refuse] COMMISSION REFUSES to
grant a license applied for under this [chapter] ARTICLE, or [shall
determine] DETERMINES to revoke such a license granted by it or a fran-
chise pursuant to sections two hundred twelve and two hundred forty-four
of this article, the [board] COMMISSION shall give to the applicant or
licensee notice of a time and place for a hearing before the [board]
COMMISSION, at which the [board] COMMISSION will hear such applicant,
licensee or franchise corporation in reference thereto. The [board]
COMMISSION may continue such hearing from time to time for the conven-
S. 7639 30
ience of all parties. Any of the parties affected by such hearing may be
represented by counsel, and the [board] COMMISSION may be represented by
the attorney general or an assistant attorney general. In the conduct of
such hearing the [board] COMMISSION shall not be bound by technical
rules of evidence, but all evidence offered before the [board] COMMIS-
SION shall be reduced to writing, and such evidence together with the
exhibits, if any, and the findings of the [board] COMMISSION, shall be
permanently preserved and shall constitute the record of the [board]
COMMISSION in such case. In connection with such hearing, each member of
the [board] COMMISSION shall have the power to administer oaths and
examine witnesses, and may issue subpoenas to compel the attendance of
witnesses, and the production of all necessary reports, books, papers,
documents, correspondence and other evidence. The [board] COMMISSION
may, if occasion shall require, by order, refer to one or more of its
members, the duty of taking testimony in such matter, and to report
thereon to the [board] COMMISSION, but no determination shall be made
therein except by the [board] COMMISSION. Within thirty days after such
hearing, the [board] COMMISSION shall make a final determination. If
[it] THE COMMISSION determines that such license shall not be granted,
or that a license issued by [it] THE COMMISSION shall be revoked, or a
franchise revoked pursuant to sections two hundred twelve and two
hundred forty-four of this article, [it] THE COMMISSION shall make an
order accordingly, and shall cause such order to be entered on [its] THE
COMMISSION'S minutes and a copy thereof served on such applicant, licen-
see or franchised corporation, as the case may be. The action of the
[board] COMMISSION in refusing to grant a license, or in revoking a
license, or in revoking a franchise pursuant to sections two hundred
twelve and two hundred forty-four of this article, shall be reviewable
in the supreme court in the manner provided by the provisions of article
seventy-eight of the civil practice law and rules.
§ 34. Section 246 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 246. Approval of plans of corporation. The [state racing and wager-
ing board] COMMISSION shall not grant to a corporation hereafter formed
pursuant to this chapter, a license to conduct a running or steeplechase
race meeting within the state until such corporation shall have submit-
ted to the [board] COMMISSION a statement of the location of its
proposed grounds and racetrack, together with a plan of such racetrack,
and plans of all buildings, seating stands and other structures, in such
form as the [board] COMMISSION may prescribe, and such plans shall have
been approved by the [board] COMMISSION. The [board] COMMISSION at the
expense of the applicant may order such engineering examination thereof
as the [board] COMMISSION may deem necessary. Alterations of buildings,
seating stands or other structures, and the erection of new or addi-
tional buildings, seating stands or other structures on the grounds of
any corporation heretofore or hereafter formed pursuant to this chapter
may be made only with the approval of the [board] COMMISSION and after
examination and inspection of the plans thereof and the issuance of a
permit therefor by such [board] COMMISSION. The approval of the certif-
icate of incorporation of such corporation shall not be deemed to vest
in it the right to a license to conduct running or steeplechase race
meetings at such race course or racetrack unless such grounds, track,
buildings, seating stands and other structures [shall be] ARE completed
in accordance with the plans approved by the [board] COMMISSION.
S. 7639 31
§ 35. Section 247 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 247. Racing zones. There are hereby created two racing zones to be
known as the first zone and the second zone. The first zone shall
include all of the counties in the first, second, ninth, tenth, eleventh
and twelfth judicial districts. The second zone shall include all the
other counties of the state. Not more than six corporations shall here-
after be licensed by the [state racing and wagering board] COMMISSION or
franchised by the state to conduct a race course or race meeting for
running races or steeplechases at which pari-mutuel betting shall be
authorized within the first zone, and not more than three of such corpo-
rations shall hereafter be so licensed within the second zone. The
[state racing and wagering board] COMMISSION shall not hereafter approve
the incorporation of such a corporation for conducting a race course or
race meeting within the second zone if the location of the proposed race
course of such corporation is within seventy-five miles of the race
course of another such corporation.
§ 36. Section 248 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 248. Racing season; allotment of dates for racing. In the assignment
of dates by the [state racing and wagering board] COMMISSION to corpo-
rations for conducting running races or steeplechases no conflict shall
be deemed to exist by reason of duplication of dates as between race
meetings in the first zone and race meetings in the second zone, nor as
between race meetings within a zone if the race courses at which such
meetings are held are at least thirty-five miles apart in the first zone
and at least seventy-five miles apart in the second zone, except that a
minimum of thirty-six days of racing shall be assigned exclusively to
the second zone unless the governor determines that a sufficient emer-
gency exists for reducing such number of days of racing, in which event
the [state racing and wagering board] COMMISSION is then authorized to
assign a lesser number of days of racing to the second zone. The [state
racing and wagering board] COMMISSION may separately apportion to the
several corporations licensed or franchised to conduct running races or
steeplechases as many of the racing days for the season, not to exceed
the maximum number of racing days permitted by law.
§ 37. Section 250 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 240 of the laws of 2010, is amended to read
as follows:
§ 250. Power of [state racing and wagering board] COMMISSION to impose
penalties. [In] THE COMMISSION, IN addition to its power to suspend or
revoke occupational licenses, licenses to conduct running races and race
meetings or steeplechases and steeplechase meetings and licenses to
conduct pari-mutuel betting at a race course or race meeting for running
races or steeplechases issued by [it] THE COMMISSION, [the state racing
and wagering board] is [hereby] authorized to impose civil penalties
upon any such licensee or franchisee for a violation of any provision of
this chapter or the rules and regulations promulgated pursuant thereto,
not exceeding [twenty-five thousand dollars for each violation] THE
AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER, which
penalties shall be paid into the state treasury. Each day upon which
such violation continues may be considered by the [board] COMMISSION as
a separate violation in assessing the amount of civil penalty to be
imposed. Any penalty so imposed shall be sued for by the attorney gener-
S. 7639 32
al in the name of the people of the state of New York, if so directed by
the [board] COMMISSION. The amount of the penalty collected by the
[board] COMMISSION or recovered in any such action, or paid to the
[board] COMMISSION upon a compromise as hereinafter provided, shall be
paid by the [board] COMMISSION into the state treasury and credited to
the general fund. The [board] COMMISSION, for cause shown and in its
discretion, may extend the time for the payment of such penalty and, by
compromise may accept less than the amount of such penalty as imposed in
settlement thereof. The powers granted by this section shall not be
affected by the circumstances that any such license [shall have] HAS
expired by its terms prior to the imposition of such penalty.
§ 38. Subdivision 7 of section 251 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
7. "Races." Races upon which pari-mutuel wagering is conducted at
thoroughbred race meetings of racing corporations as authorized by the
[state racing and wagering board] COMMISSION.
§ 39. Paragraph b of subdivision 1 and the opening paragraph and para-
graph d of subdivision 2 of section 254 of the racing, pari-mutuel
wagering and breeding law, paragraph b of subdivision 1 as added and the
opening paragraph and paragraph d of subdivision 2 as amended by chapter
18 of the laws of 2008, and subparagraph (i) of paragraph d of subdivi-
sion 2 as amended by chapter 123 of the laws of 2013, are amended to
read as follows:
b. The fund is authorized to receive one AND ONE-HALF percent of the
total wagered after payout of prizes for the [first year of] operation
of video lottery gaming at Aqueduct racetrack[, one and one-quarter
percent of the total wagered after payout of prizes for the second year
of operation, and one and one-half percent of the total wagered after
payout of prizes for the third year of operation and thereafter,] for an
appropriate breeding fund for the manner of racing conducted at Aqueduct
racetrack, Belmont Park racetrack and Saratoga race course.
The fund is authorized to dispose and distribute the moneys received
by it pursuant to this chapter and in accordance with distribution sche-
dules promulgated by the fund and adopted in the rules and regulations
of the [board] COMMISSION. Such schedules shall be developed and based
on reasonable estimates of fund income for the fiscal year of the fund
and made available prior to January first of each year. In formulating
distribution schedules, the board of directors OF THE FUND may determine
that for those New York-breds foaled after December thirty-first, nine-
teen hundred eighty-seven, the amounts to be made available in awards to
the breeders and owners of such New York-breds [which] THAT have been
sired by registered New York stallions may exceed the amounts to be made
available to the breeders and owners of such New York-breds sired by
other than registered New York stallions. Such schedules may be
adjusted, from time to time, by majority vote of the board of directors
OF THE FUND, for the following purposes and no other:
d. (i) An amount as shall be determined by the fund but not in excess
of forty-four percent to provide purse moneys exclusively for New York-
breds entered in all races, the conditions of which have been approved
by the fund[. Provided]; PROVIDED, however, that the fund shall set
aside forty percent of the funds allotted under this subdivision to
tracks operated by corporations licensed or franchised in accordance
with the provisions of section two hundred five or section two hundred
six of this article except that in addition to the other amounts allot-
ted by the fund under this paragraph, seventy-five percent of fund
S. 7639 33
revenues derived from payments received in accordance with subdivision
one of section five hundred twenty-seven of this chapter shall be allot-
ted exclusively to purses at a track operated by a corporation licensed
under the provisions of section two hundred five of this article.
(ii) The fund may direct a portion or portions of revenues allocated
in this paragraph and dedicated to a racing corporation licensed in
accordance with section two hundred five of this article to pari-mutuel
races at such track [which] THAT are not restricted to New York-breds
provided that the revenues so allocated shall [only] be used ONLY to
enrich any purses awarded to New York-breds finishing first, second,
third, fourth or fifth in such non-restricted races.
§ 40. Section 301 of the racing, pari-mutuel wagering and breeding
law, the section heading as separately amended by chapter 363 and chap-
ter 678 of the laws of 1984, paragraphs a, b and c of subdivision 2 as
relettered by chapter 211 of the laws of 1999, subdivision 4 as amended
by section 5 of part F3 of chapter 62 of the laws of 2003 and subdivi-
sion 5 as added by chapter 116 of the laws of 2001, is amended to read
as follows:
§ 301. General powers of [state racing and wagering board] COMMISSION;
harness racing defined; super exotic bet defined, authorized. 1. Pursu-
ant to the provisions of sections two hundred twenty-two through seven
hundred five of this chapter, the [state racing and wagering board]
COMMISSION shall have power to supervise generally all harness race
meetings in this state at which pari-mutuel betting is conducted. The
[board] COMMISSION may adopt rules and regulations not inconsistent with
sections two hundred twenty-two through seven hundred five of this chap-
ter to carry into effect its purposes and provisions and to prevent
circumvention or evasion thereof. In order that the rules of harness
horse racing may be uniform throughout the United States, the [board]
COMMISSION may adopt the rules and regulations of the United States
Trotting Association, in whole or in part, and may adopt such other or
different rules as [it] THE COMMISSION deems necessary to carry into
effect the purposes and provisions of sections two hundred twenty-two
through seven hundred five of this chapter.
2. Without limiting the generality of the foregoing, and in addition
to its other powers:
a. The [state racing and wagering board] COMMISSION shall prescribe
rules and regulations for effectually preventing the use of improper
devices, the administration of drugs or stimulants or other improper
acts for the purpose of affecting the speed of harness horses in races
in which they are about to participate.
b. The rules of the [board] COMMISSION shall also provide that all
winning pari-mutuel tickets must be presented for payment before April
first of the year following the year of their purchase and failure to
present any such ticket within the prescribed period of time shall
constitute a waiver of the right to participate in the award or divi-
dend.
c. The [board] COMMISSION shall have power in its discretion, consist-
ent with the powers of [the state tax commission] DEPARTMENT OF TAXATION
AND FINANCE, to prescribe uniform methods of keeping accounts, records
and books to be observed by associations or corporations licensed under
the provisions of this article or by any association or corporation
[which] THAT owns stock in, or shares in the profits, or participates in
the management or affairs of, such licensed association or corporation,
or by any person, firm, association or corporation holding any conces-
sion, right or privilege to perform any service or sell any article at
S. 7639 34
any track at which pari-mutuel harness racing meets are conducted. The
[board] COMMISSION may also in its discretion, consistent with the
powers of the state tax commission, prescribe by order forms of
accounts, records and memoranda to be kept by such persons, firms, asso-
ciations or corporations. The [board] COMMISSION shall have power to
visit, investigate, and place expert accountants, or such other persons
as it may deem necessary, in the offices, tracks or other places of
business of any such person, firm, association or corporation for the
purpose of seeing that the provisions of sections two hundred twenty-two
through seven hundred five of this chapter and the rules and regulations
issued by the [board] COMMISSION thereunder are strictly complied with.
Such persons, firms, associations or corporations shall annually file
with the [board] COMMISSION, on such date as the [board] COMMISSION
shall prescribe, a report showing their financial condition and finan-
cial transactions during the fiscal year, including a balance sheet and
a profit and loss statement, verified by the oath of at least two of its
principal officers, if it be an association or corporation having offi-
cers, and by one or more of the owners or proprietors thereof if not an
association or corporation. The report shall be in such form and contain
such other matters as the [board] COMMISSION may determine from time to
time to be necessary to disclose accurately the financial condition and
operation of such persons, firms, associations or corporations during
the preceding fiscal year. The [board] COMMISSION may for good cause
shown grant a reasonable extension of time for the filing of any such
report.
3. The term "racing", as used in this article, shall be construed to
mean only horse racing in which the horses participating are harnessed
to a sulky, carriage, or similar vehicle, and shall not include any form
of horse racing in which the horses participating are mounted by a jock-
ey.
4. The term "super exotic bet" or "super exotic wager", as used in
this chapter, shall mean a single bet or wager on six or more horses,
evidenced by a single ticket and representing an interest in a betting
pool hereby authorized to be conducted by licensed racing associations
or corporations or regional off-track betting corporations pursuant to
rules and regulations of the [state racing and wagering board] COMMIS-
SION. Such rules and regulations shall provide the manner in which
winning tickets in such pool shall be determined and may provide that a
portion only of the amounts otherwise available to winners of such pools
be paid to holders of consolation tickets combining the most winning
horses as provided in such rules and regulations and that the balance of
amounts otherwise available to winners from such pool be carried forward
and deposited in any subsequent super exotic pools. Such rules and regu-
lations shall also provide that an amount not to exceed six [per centum]
PERCENT of the total wagers in each super exotic pool may be used or
accumulated to reimburse any such association or corporation conducting
such pool for the cost of assuring an advertised winning pay-out for
winning wagers or for a capital improvement fund or to reimburse any
such association or corporation for amounts it has contributed to the
amounts otherwise available for winning wagers to increase the pay-out
therefor. Such rules and regulations may further provide that all of the
amounts available for winning tickets and accumulations therefor shall
be distributed periodically to holders of tickets combining the most
winners in a pool conducted upon a date specified by the [board] COMMIS-
SION and, in any event, shall provide for complete disposition of all
amounts available for winning tickets and accumulations therefor before
S. 7639 35
the end of the licensed meet during which such super exotic pools are
conducted. Notwithstanding the foregoing or any other provisions of
law, all distributions, taxes and regulatory fees on super exotic bets
shall be distributed as though the bet were an exotic bet, except that a
balance may be retained and deposited in subsequent pools.
5. The [board] COMMISSION shall have the power to issue licenses to
western regional off-track betting corporation or to a subsidiary of
said western regional off-track betting corporation for the purpose of
conducting harness race meetings at Batavia Downs race track and to make
capital improvements to said track, provided that such corporation
otherwise meets the terms and conditions for licensure as provided under
this article. Notwithstanding the provisions of articles five and five-a
of this chapter, said corporation shall be deemed to be a harness racing
corporation with respect to pari-mutuel wagering conducted at said track
pursuant to this chapter, except that net revenues derived from such
pari-mutuel wagering shall be distributed among the counties that
participate in such corporation on the basis of population, as defined
as the total population in each participating county shown by the latest
preceding decennial federal census completed and published as a final
population count by the United States bureau of the census preceding the
commencement of the calendar year in which such distribution is to be
made.
§ 41. Section 302 of the racing, pari-mutuel wagering and breeding
law, subdivision 5 as amended by chapter 687 of the laws of 1983, is
amended to read as follows:
§ 302. Incorporation. Any number of persons, not less than five, may
become a corporation for the purpose of conducting harness horse race
meetings at which pari-mutuel betting will be conducted, with all the
general powers of corporations created under the laws of this state, by
making, signing, acknowledging and filing a certificate [which] THAT
shall contain THE:
1. [The] name of the proposed corporation[.];
2. [The] objects for which [it] THE CORPORATION is to be formed and
the location at which it is proposed to conduct its business[.];
3. [The] amount and description of the capital stock[.];
4. [The] location of [its] THE CORPORATION'S principal business
office[.];
5. [Its] duration[.] OF THE CORPORATION;
6. [The] number of [its] THE CORPORATION'S directors, not less than
five nor more than thirteen[.];
7. [The] names and post office addresses of the directors for the
first year[.]; AND
8. [The] post office addresses of the subscribers and a statement of
the number of shares of stock [which] THAT each agrees to take in the
corporation.
No certificate of incorporation under this section shall hereafter be
filed without the approval of the [state racing and wagering board]
COMMISSION indorsed thereon or annexed thereto.
No corporation organized pursuant to this article or operating a
harness horse race meet pursuant to the provisions of section three
hundred four of this article, shall have or be given the right or power
to conduct any harness horse race meet pursuant to this article except
at the location designated in its certificate of incorporation as the
place at which it was proposed to conduct its business, or at the place
or places where it is presently licensed to conduct a harness horse race
meet or meetings by the [state racing and wagering board] COMMISSION;
S. 7639 36
provided, however, that this restriction shall not apply to any such
corporation or association whose racing plant or the usefulness thereof
or of any material part thereof, in the discretion of the [board]
COMMISSION, shall, for any reason beyond the control of such corporation
or association, be totally destroyed or so substantially interfered with
or damaged as to render same unfit for continued operation. Pending the
rebuilding, or restoration of its usefulness or the making of the
required repairs to said plant or the part thereof so destroyed or
damaged, the [state racing and wagering board] COMMISSION may license
such corporation or association to conduct its harness horse race meet-
ings at any other suitable location.
§ 42. Section 303 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 303. Filing of information concerning stock transfers; necessity for
[board's] COMMISSION approval. 1. Whenever a transfer of stock of any
association or corporation [which] THAT is licensed under this article,
or of any association or corporation [which] THAT leases to such licen-
see the track at which it conducts pari-mutuel harness races, or [which]
THAT owns twenty-five percent or more of the stock of such licensee
shall be made, there shall be filed simultaneously with the association
or corporation [which] THAT issued such stock the following:
a. In duplicate, an affidavit executed by the transferee stating that
[he] THE AFFIANT is to be the sole beneficial owner thereof, and whether
or not [he] THE AFFIANT HAS (i) [has] been convicted of a crime involv-
ing moral turpitude, (ii) [has] been engaged in bookmaking or other
forms of illegal gambling, (iii) [has] been found guilty of any fraud or
misrepresentation in connection with racing or breeding, (iv) [has] been
guilty of any violation or attempt to violate any law, rule or regu-
lation of any racing jurisdiction for which suspension from racing might
be imposed in such jurisdiction, or (v) [has] violated any rule, regu-
lation or order of the [board] COMMISSION; if the transferee is not, or
is not to be, the sole beneficial owner thereof, then there shall be
annexed to said affidavit of the transferee, and expressly stated in
such affidavit to be deemed a part thereof, a true and complete copy, or
if oral, a complete statement of all the terms, of the agreement or
understanding pursuant to which the stock is to be so held by the trans-
feree, including a detailed statement of the interest therein of each
person who is to have any interest therein; and at the same time.
b. In duplicate, an affidavit executed by each person for whom [the
said] SUCH stock, or any interest therein, is to be held by said trans-
feree, setting forth whether or not the affiant HAS (i) [has] been
convicted of a crime involving moral turpitude, (ii) [has] engaged in
bookmaking or other forms of illegal gambling, (iii) [has] been found
guilty of any fraud or misrepresentation in connection with racing or
breeding, (iv) [has] been guilty of any violation or attempt to violate
any law, rule or regulation of any racing jurisdiction for which suspen-
sion from racing might be imposed in such jurisdiction, or (v) [has]
violated any rule, regulation or order of the [board] COMMISSION; to
each of which affidavits shall be annexed, and expressly stated in such
affidavit to be deemed a part thereof, a true and complete copy, or if
oral, a complete statement of all the terms, of the agreement or under-
standing pursuant to which the stock is to be so held by the transferee,
including a detailed statement of the interest therein of each person
who is to have any interest therein.
c. Said association or corporation shall forthwith file with the
[board] COMMISSION one of each of said duplicate affidavits.
S. 7639 37
2. If, after the filing of any affidavit [hereinabove] required to be
filed BY SUBDIVISION ONE OF THIS SECTION, there [be] IS any change in
the status of any such affiant with respect to any of the matters set
forth in subparagraph (i), (ii), (iii), (iv) or (v) of paragraph a of
subdivision one of this section of the affidavit theretofore filed by
him OR HER, such affiant shall forthwith file with the association or
corporation with which [his] THE AFFIANT'S affidavit was so filed a new
affidavit, executed [by him] in duplicate, setting forth such change of
status, and the association or corporation shall forthwith file one of
said affidavits with the [board] COMMISSION.
3. Whenever any change [shall be] IS made in the amount, nature, or
otherwise, of the interest of any person having an interest in stock of
any such association or corporation, or any new interest [shall be] IS
created therein, without a transfer [thereof] OF SUCH INTEREST as
[hereinabove] provided IN SUBDIVISIONS ONE AND TWO OF THIS SECTION, the
record owner of such stock, and each person whose interest therein has
been so attempted to be changed or created, shall file with the associ-
ation or corporation [which] THAT issued such stock, in duplicate, affi-
davits as provided by paragraphs a and b of subdivision one of this
section, except that such affidavits need not include the matters
referred to in subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph
a of subdivision one of this section, unless then required pursuant to
subdivision two of this section, and one copy thereof shall forthwith be
filed by the association or corporation with the [board] COMMISSION.
4. The [board] COMMISSION may, upon application to it for good cause
shown, waive compliance with subdivisions one, two and three of this
section.
5. If the [board] COMMISSION determines that it is inconsistent with
the public interest, convenience or necessity, or with the best inter-
ests of racing generally, that any person continue to be a stockholder
of record, or the beneficial owner of any interest in stock standing in
the name of another, in any association or corporation licensed under
this article, or of any association or corporation [which] THAT leases
to such licensee the track at which it conducts pari-mutuel harness
racing or [which] THAT owns twenty-five percent or more of the stock of
such licensee, the [board] COMMISSION shall have full power and authori-
ty to order or direct each such stockholder or beneficial owner irre-
spective of the time when such stockholder or beneficial owner acquired
his OR HER stock or interest therein to dispose of such stock or inter-
est within a period of time to be specified by the [board] COMMISSION,
which period the [board] COMMISSION shall have full power and authority
to extend from time to time.
6. If the [board] COMMISSION shall make any order or direction as
provided in subdivision five of this section, the person aggrieved
thereby shall be given notice of the time and place of a hearing before
the [board] COMMISSION at which the [board] COMMISSION will hear such
person in reference thereto. The action of the [board] COMMISSION in
making any such order or direction shall be reviewable in the courts of
this state in the manner provided by, and subject to the provisions of
article seventy-eight of the civil practice law and rules.
7. Upon application of the [board] COMMISSION, the supreme court of
this state shall have jurisdiction to issue final orders, on notice and
after hearing, commanding any person to comply with the provisions of
the orders or directions issued by the [board] COMMISSION under subdivi-
sion five of this section.
S. 7639 38
8. In case of conflict between this section and article eight of the
uniform commercial code, this section shall control.
§ 43. Subdivision (b) and the closing paragraph of section 303-a of
the racing, pari-mutuel wagering and breeding law, as added by chapter
281 of the laws of 1994, are amended to read as follows:
(b) Non-managing owners. There shall be no restriction on the number
of non-managing owners of a race horse except that no horse shall be
entered or started [which] THAT is owned by thirty-five or fewer owners
unless all such owners are licensed; in the event that a horse is owned
by more than thirty-five owners, only those individuals having a three
percent or greater property interest in such horse shall be required to
be licensed as an owner.
The [board] COMMISSION shall adopt rules and regulations regarding
ownership of horses not inconsistent with this section.
§ 44. Section 304 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 304. Right to hold harness race meetings and races. Any corporation
formed under the provisions of sections two hundred twenty-two through
seven hundred five of this chapter, and any corporation or association
which shall have conducted harness horse race meetings during two years
prior to March thirty-first, nineteen hundred forty, and any town or
county fair association or other fair association shall have the power
and the right to hold one or more harness horse race meetings in each
year and to hold, maintain and conduct harness races at such meetings.
At such harness race meetings the corporation or association, or the
owners of horses engaged in such races, or others who are not partic-
ipants in the race, may contribute purses, prizes, premiums or stakes to
be contested for, but no person or persons other than the owner or
owners of a horse or horses contesting in a race shall have any pecuni-
ary interest in a purse, prize, premium or stake contested for in such
race, or be entitled to or receive any portion thereof after such race
is finished, and the whole of such purse, prize, premium or stake shall
be allotted in accordance with the terms and conditions of such race.
Such meeting shall not be held except during the period extending from
the first day of January to the thirty-first day of December inclusive
in each year. In counties having a population of two hundred fifty thou-
sand or less, the [state racing and wagering board] COMMISSION may,
however, permit the holding of one or more harness horse race meetings
and the conduct of harness races at such meetings on a day or days not
during such period if the [board] COMMISSION is satisfied that a special
occasion makes the holding of such meetings and the conduct of such
races on such day or days proper or necessary; but in no event shall
such meetings or races be held or conducted on the twenty-fifth day of
December. Such power and right, however, shall not include the right to
conduct pari-mutuel betting at such harness horse race meetings except
pursuant to license granted by the [state racing and wagering board]
COMMISSION pursuant to sections two hundred twenty-two through seven
hundred five of this chapter.
§ 45. Section 305 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 305. Pari-mutuel betting at harness races. No more than eight
corporations or associations shall be licensed by the [state racing and
wagering board] COMMISSION in any one year to conduct a pari-mutuel meet
or meets. Said pari-mutuel betting conducted at such meetings shall be
under the general supervision and control of the [state racing and
wagering board] COMMISSION which shall make rules regulating the conduct
S. 7639 39
of such pari-mutuel betting in accordance with the provisions of
sections two hundred twenty-two through seven hundred five of this chap-
ter. The [state tax commission] DEPARTMENT OF TAXATION AND FINANCE is
charged with the financial administration of pari-mutuel betting as
prescribed in this article and as supplemented by the rules and regu-
lations of the [state racing and wagering board] COMMISSION. The [state
tax commission] DEPARTMENT OF TAXATION AND FINANCE shall have authority
to prescribe the forms and the system of accounting to be employed, and
through its representatives shall at all times have power of access to
and examination of any equipment relating to such betting.
§ 46. Section 307 of the racing, pari-mutuel wagering and breeding
law, subdivision 5-a as amended by chapter 18 of the laws of 2008,
subdivision 5-b as added by chapter 542 of the laws of 1999 and subdivi-
sion 10 as added by chapter 530 of the laws of 2008, is amended to read
as follows:
§ 307. Licenses for harness race meetings. 1. Any association or
corporation desiring to conduct harness race meetings at which pari-mu-
tuel betting shall be permitted may apply annually to the [state racing
and wagering board] COMMISSION for a license so to do. If, in the judg-
ment of the [state racing and wagering board] COMMISSION the public
interest, convenience or necessity will be served thereby and a proper
case for the issuance of such license is shown consistent with the
purposes of sections two hundred twenty-two through seven hundred five
of this chapter and the best interests of racing generally, it may grant
such license for a term ending not later than the thirty-first day of
December next succeeding the granting thereof, specifying dates and
hours during which and the place where the licensee may operate;
provided, however, that any harness racetrack which applies to the
[state racing and wagering board] COMMISSION for permission to make one
or more capital improvements may, in connection with such application or
before or after such application, also apply to the [state racing and
wagering board] COMMISSION for, and the [state racing and wagering
board] COMMISSION shall, as an inducement for or in recognition of the
making of such capital improvement, grant a capital improvement license,
which may be conditioned on the completion of the capital improvement if
not yet made, for a period of not more than twenty-five years, but in no
event for a period longer than is necessary to amortize any loan for
capital improvements and shall specify for each year of the term of said
license the minimum number of days on which, and the minimum number of
hours on each such day, and the places where said licensee may conduct
such harness race meetings at which pari-mutuel betting shall be permit-
ted. Such a capital improvement license shall be issued if in the judg-
ment of the [state racing and wagering board] COMMISSION the public
interest, convenience or necessity will be served thereby and a proper
case for the issuance of such a license is shown consistent with the
purposes of sections two hundred twenty-two through seven hundred five
of this chapter and the best interests of racing generally, and in
determining the period and other terms of such capital improvement
license, the [state racing and wagering board] COMMISSION shall be guid-
ed by the nature of the capital improvement and the cost thereof. Such
capital improvement license shall automatically expire, irrespective of
the term thereof, when the loan of funds upon which it has been issued,
has been paid off by the licensee. Where a capital improvement license
is granted, the [state racing and wagering board] COMMISSION shall spec-
ify annually the dates on which, but not beyond the thirty-first day of
December, and hours during which such licensee may operate, at the plac-
S. 7639 40
es and for the full number of days and hours specified in its capital
improvement license.
2. Every such license shall be issued upon condition:
a. [That] THAT every harness horse race meeting at which pari-mutuel
betting is conducted shall be subject to the supervision of and to the
reasonable rules and regulations from time to time prescribed by the
[state racing and wagering board] COMMISSION, and
b. [That] THAT pari-mutuel betting conducted thereunder shall also be
subject to the supervision of and to the reasonable regulations from
time to time prescribed by the [state tax commission] DEPARTMENT OF
TAXATION AND FINANCE. Any such license may also be issued upon any other
condition that the [state racing and wagering board] COMMISSION shall
determine to be necessary or desirable to insure that the public inter-
est, convenience or necessity is served.
3. Applications for licenses shall be in such form as may be
prescribed by the [board] COMMISSION and shall contain such information
or other material or evidence as the [board] COMMISSION may require.
Each application for renewal of a license shall be deemed to be an
application for a new license. The fee for such licenses shall be one
hundred dollars for each racing day payable in installments in advance
of each week's racing which sums shall be paid into the general fund of
the state treasury by the [board] COMMISSION. The term "racing week"
shall include those days as defined by the rules and regulations of the
[racing and wagering board] COMMISSION.
4. In considering an application for a license under this section the
[state racing and wagering board] COMMISSION may give consideration to
the number of licenses already granted and to the location of the tracks
previously licensed. No such license shall be granted to any track which
has not conducted pari-mutuel harness racing during at least ten calen-
dar years and which is located within ten miles of a state, county or
town fair conducting harness racing for the three consecutive years
immediately preceding April second, nineteen hundred fifty-three, which
license shall be operative during the racing dates of such fair, unless
the association, corporation or society conducting such fair shall
affirmatively waive objection to the issuance of such license for dates
within such period. No such license shall be granted to any track
located within the corporate limits of a city of the first class. No
such license shall be granted to any harness horse racetrack located
within twenty-five miles of any track already licensed for the same
dates and hours except with the consent of the licensee located within
such twenty-five mile area.
5. The [board] COMMISSION may refuse to grant a license to an associ-
ation or corporation if it shall determine that:
a. Any officer, director, member or stockholder of such association or
corporation applying for a license, or of any association or corporation
[which] THAT owns stock in or shares in the profits, or participates in
the management, of the affairs of such applicant, or [which] THAT leases
to such applicant the track where [it shall] SUCH APPLICANT WILL operate
HAS:
(i) [has] been convicted of a crime involving moral turpitude;
(ii) [has] engaged in bookmaking or other forms of illegal gambling;
(iii) [has] been found guilty of any fraud or misrepresentation in
connection with racing or breeding;
(iv) [has] been guilty of any violation or attempt to violate any law,
rule or regulation of any racing jurisdiction for which suspension from
racing might be imposed in such jurisdiction;
S. 7639 41
(v) [has] violated any rule, regulation or order of the [board]
COMMISSION; or
b. The experience, character or general fitness of any officer, direc-
tor or stockholder of any of the aforesaid associations or corporations
is such that the participation of such person in harness racing or
related activities would be inconsistent with the public interest,
convenience or necessity or with the best interests of racing generally;
but if the [board] COMMISSION determines that the interest of any stock-
holder referred to in this paragraph or in paragraph a of this subdivi-
sion is insufficient in the opinion of the [board] COMMISSION to affect
adversely the conduct of pari-mutuel harness racing by such association
or corporation in accordance with the provisions of this article, the
[board] COMMISSION may disregard such interest in determining whether or
not to grant a license to such association or corporation; or
c. The applicant is not the owner of the track at which it will
conduct pari-mutuel harness racing pursuant to the license applied for,
or that any person, firm, association or corporation other than the
applicant shares, or will share, in the profits of the applicant, other
than by dividends as a stockholder, or participates or will participate
in the management of the affairs of the applicant.
5-a. The [board] COMMISSION shall not issue a license pursuant to this
section to any harness racing association or corporation [which] THAT
does not apply to conduct at its facilities a minimum number of pari-mu-
tuel programs and pari-mutuel races at its facilities equal to at least
seventy-five [per centum] PERCENT of the programs and races so conducted
during nineteen hundred eighty-five or during nineteen hundred eighty-
six, or one hundred [per centum] PERCENT of the programs and races so
conducted during two thousand, whichever is greater; provided, however,
that for a harness racing association or corporation located in West-
chester and Erie counties, such minimum number of pari-mutuel programs
and pari-mutuel races at its facilities shall equal at least one hundred
[per centum] PERCENT of the programs and races conducted during two
thousand. If the track did not conduct races during two thousand, such
minimum number of pari-mutuel programs and pari-mutuel races at its
facilities shall equal at least ninety [per centum] PERCENT of the
programs and races conducted during two thousand at Buffalo raceway, in
the town of Hamburg and county of Erie, unless cancellation of a race
day because of an act of God, [which] THAT the [board] COMMISSION
approves or because of weather conditions that are unsafe or hazardous
[which] THAT the [board] COMMISSION approves shall not be construed as a
failure to conduct a race day; provided further, the [board] COMMISSION
shall not grant a license to such association or corporation upon appli-
cation unless such programs and races are conducted during the same
calendar year period as were conducted during the applicable period
above [utilized] USED to measure the minimum number of pari-mutuel
programs and pari-mutuel races, as approved by the [board] COMMISSION.
Nothing in the foregoing paragraph shall affect any agreement in effect
on or before the effective date of this paragraph. The [board] COMMIS-
SION may grant a license to such association or corporation to conduct
fewer such programs and races for good cause shown due to factors beyond
the control of such association or corporation, and upon consent of the
representative horsemen's association, as determined pursuant to section
three hundred eighteen of this article.
5-b. Notwithstanding any inconsistent provision of subdivision five-a
of this section and article ten of this chapter, where the [board]
COMMISSION certifies by December first of the proceeding year that the
S. 7639 42
number of standardbred horses eligible for competition is less than that
of the base year as defined in subdivision five-a of this section, and
only if the authorized horsemen's association concurs as evidenced by a
written agreement between the track and the horsemen's association, a
licensee pursuant to this section may submit and the [board] COMMISSION
may accept a license application requesting a reduced number of race
dates where it is in the best interest of racing within this state and
provided that the licensee shall not be penalized or required by the
[board] COMMISSION to diminish simulcasting activities or incur an
increased tax liability as a result of a [board sanctioned] COMMISSION-
SANCTIONED reduction in its live racing activity under this subdivision.
6. The [board] COMMISSION shall also have power to refuse to grant a
license:
a. [To] TO any association or corporation, the charter or certificate
of incorporation of which [shall fail] FAILS to contain a provision
requiring any stockholder, upon written demand of the association or
corporation, to sell his, HER OR ITS stock to the association or corpo-
ration at a price to be fixed in the manner otherwise provided by law,
provided such demand be made pursuant to written direction of the
[board] COMMISSION; and from and after the date of the making of such
demand, prohibiting the transfer of such certificate of stock, except to
the association or corporation; or
b. [To] TO any association or corporation [which] THAT, having been a
licensee, has failed in the opinion of the [board] COMMISSION to proper-
ly maintain its track and plant in good condition or has failed to make
adequate provision for rehabilitation and capital improvements to its
track and plant.
7. Pending final determination of any question under this section, the
[board] COMMISSION may issue a temporary license upon such terms and
conditions as it may deem necessary, desirable or proper to effectuate
the provisions of sections two hundred twenty-two through seven hundred
five of this chapter.
8. Notwithstanding any other provision of this article, the [state
racing and wagering board] COMMISSION may, no more than once in any
calendar year, grant a license to any authorized harness racing associ-
ation or corporation to hold and conduct one additional harness race
meeting of not more than seven days duration, with pari-mutuel betting,
on any mile track within this state, to enable said authorized harness
racing association or corporation to conduct a special stakes race not
limited to the Hambletonian stakes and associated events.
9. The [board] COMMISSION shall have power to direct that every
certificate of stock of an association or corporation licensed under the
provisions of sections two hundred twenty-two through seven hundred five
of this chapter shall bear a legend plainly and prominently imprinted
upon the face of the certificate reading: "This certificate of stock is
transferable only subject to the provisions of section three hundred
three of the racing, pari-mutuel wagering and breeding law".
10. Notwithstanding the provisions of section three hundred twenty-one
of this [chapter] ARTICLE, the refusal of an application for such
license shall be preceded by notice and an opportunity to be heard. In
the conduct of such hearing the [board] COMMISSION shall not be bound by
technical rules of evidence but all evidence offered before the [board]
COMMISSION shall be reduced to writing, and such evidence together with
the exhibits, if any, and the findings of the [board] COMMISSION, shall
be permanently preserved and shall constitute the record of the [board]
COMMISSION in such case. Such hearing may be presided over by the
S. 7639 43
[chairman] CHAIR of the [board] COMMISSION or by any member or by an
officer of the [board] COMMISSION designated by the [chairman] CHAIR in
writing to act as hearing officer and such person or persons may issue
subpoenas for witnesses and administer oaths to witnesses. The hearing
officer, at the conclusion of the hearing shall make findings which, if
concurred in by [two members] A MAJORITY of the [board] COMMISSION,
shall become the findings of the [board] COMMISSION. The action of the
[board] COMMISSION in refusing a license shall be reviewable in the
supreme court in the manner provided by the provisions of article seven-
ty-eight of the civil practice law and rules.
§ 47. The section heading and subdivision (a) of section 307-a of the
racing, pari-mutuel wagering and breeding law, as amended by chapter 284
of the laws of 2017, are amended to read as follows:
New [York bred] YORK-BRED or wholly owned harness races. (a) Any asso-
ciation or corporation licensed to conduct harness race meetings at
which pari-mutuel betting is permitted may, if in its sole discretion
such association or corporation determines that it would be beneficial,
offer non-stakes races [which] THAT are limited to New [York bred] YORK-
BRED horses or horses wholly owned by New York state residents. These
races may be written on such terms and conditions as any other race
authorized pursuant to law or regulation of the commission, notwith-
standing any preference date requirements.
§ 48. Subdivisions 1, 2 and 4 of section 308 of the racing, pari-mutu-
el wagering and breeding law, as amended by section 1 of part CC of
chapter 60 of the laws of 2016, are amended to read as follows:
1. At all harness race meetings licensed by the [gaming] commission in
accordance with the provisions of sections two hundred twenty-two
through seven hundred five of this chapter qualified judges and starters
shall be designated by the [gaming] commission. Such officials shall
enforce the rules and regulations of the [gaming] commission and shall
render regular written reports of the activities and conduct of such
race meetings to the [gaming] commission.
2. The licensed racing corporations shall reimburse the [gaming]
commission for the per diem cost to the commission to employ one associ-
ate judge and the starter to serve at harness race meetings. The commis-
sion shall notify each such licensed racing corporation of the per diem
cost of the associate judge and the starter at the track of such
licensed racing corporation within sixty days of the end of each month.
Payment of the reimbursement required by this section shall be made to
the commission by each entity required to make such payments within
thirty days of such notification by the commission and shall cover all
the costs incurred during that month. A penalty of five percent of
payment due, and interest at the rate of one percent per month calcu-
lated from such date that payment is due to the date of the payment of
the per diem cost shall be payable in case any per diem cost imposed by
this subdivision is not paid when due. The commission shall promulgate
rules and regulations to ensure the proper reimbursement of such costs.
4. Any associate judge and starter whose per diem costs are reimbursed
by a licensed racing corporation shall remain employees of the [gaming]
commission and shall retain all the rights and privileges of their
current civil service jurisdictional classification and status and
collective bargaining unit representation.
§ 49. Section 309 of the racing, pari-mutuel wagering and breeding
law, subdivision 1 as amended by chapter 164 of the laws of 2003, is
amended to read as follows:
S. 7639 44
§ 309. Licenses for participants and employees at harness race meet-
ings. 1. For the purpose of maintaining a proper control over harness
race meetings conducted pursuant to sections two hundred twenty-two
through seven hundred five of this chapter, the [state racing and wager-
ing board] COMMISSION may license drivers and such other persons partic-
ipating in harness horse race meets, as the [board] COMMISSION may by
rule prescribe, including, if the [board deem] COMMISSION DEEMS it
necessary so to do, owners, and some or all persons exercising their
occupation or employed at harness race meets, provided, however, that no
such license shall be required for seasonal employees hired solely to
work for no longer than six weeks during the summer meet at the Syracuse
mile. Each applicant for a license shall pay to the [board] COMMISSION
an annual license fee as follows: owner's license, if a renewal, fifty
dollars, and if an original application, one hundred dollars; trainer's
license, twenty dollars; assistant trainer's license, twenty dollars;
driver's license, twenty dollars; farrier's license, twenty dollars; and
stable employee's license, five dollars. Such fees shall be paid to the
[board] COMMISSION and by it paid into the state treasury. The [board]
COMMISSION may by rule fix the license fees to be paid by other persons
required to be licensed by the rules of the [board] COMMISSION, not to
exceed twenty dollars per category. All such licenses, unless revoked
for cause shall be for the period of no more than one, two or three
years, as determined by rule of the [board] COMMISSION, expiring on the
applicant's birth date. Licenses current on the effective date of this
provision shall not be reduced in duration by this provision. An appli-
cant who applies for a license that, if issued, would take effect less
than six months prior to the applicant's birth date may, by payment of a
fifty percent higher fee, receive a license [which] THAT shall not
expire until the applicant's second succeeding birth date. For each
category of license, the applicant may apply for a two or three year
license by payment to the [board] COMMISSION of the appropriate multiple
of the annual fee. The applications for licenses shall be in writing,
accompanied by fingerprints and a photograph of the applicant, and shall
be in such form, and contain such other information, as the [board]
COMMISSION may require. Such fingerprints shall be submitted to the
division of criminal justice services for a state criminal history
record check, as defined in subdivision one of section three thousand
thirty-five of the education law, and may be submitted to the federal
bureau of investigation for a national criminal history record check.
Every person employed after May first, nineteen hundred fifty-four, by
such association or corporation, including officers and directors there-
of, whether or not such person be licensed, shall file fingerprints and
a photograph with the [board] COMMISSION within ten days after such
employment. The fingerprints so obtained from applicants for licenses
and from employees not to be licensed shall be forthwith transmitted by
the [board] COMMISSION to the division of criminal justice services and
may also be submitted to the federal bureau of investigation or any
other government agency having facilities for checking fingerprints for
the purpose of establishing the identity and the previous criminal
record, if any, of such person and such agency shall promptly report its
findings to the [board] COMMISSION in writing.
2. If the [state racing and wagering board shall find] COMMISSION
FINDS that the experience, character and general fitness of the appli-
cant are such that the participation of such person in harness horse
race meets will be consistent with the public interest, convenience and
necessity and with the best interests of racing generally in conformity
S. 7639 45
with the purposes of sections two hundred twenty-two through seven
hundred five of this chapter, [it] THE COMMISSION may thereupon grant a
license.
Without limiting the generality of the foregoing, the [board] COMMIS-
SION may refuse to issue a license, pursuant to this section, if [it
shall find] THE COMMISSION FINDS that the applicant HAS:
a. [Has] been convicted of a crime involving moral turpitude;
b. [Has] engaged in bookmaking or other form of illegal gambling;
c. [Has] been found guilty of any fraud or misrepresentation in
connection with racing or breeding;
d. [Has] been found guilty of any violation or attempt to violate any
law, rule or regulation of racing in any jurisdiction for which suspen-
sion from racing might be imposed in such jurisdiction; or
e. [Who has] violated any rule, regulation or order of the [board]
COMMISSION. The [board] COMMISSION may suspend or revoke a license
issued pursuant to this section if [it shall determine] THE COMMISSION
DETERMINES that (i) the applicant or licensee HAS (1) [has] been
convicted of a crime involving moral turpitude; (2) [has] engaged in
bookmaking or other form of illegal gambling; (3) [has] been found guil-
ty of any fraud in connection with racing or breeding; (4) [has] been
guilty of any violation or attempt to violate any law, rule or regu-
lation of any racing jurisdiction for which suspension from racing might
be imposed in such jurisdiction; or (5) [who has] violated any rule,
regulation or order of the [board] COMMISSION, or (ii) [that] the expe-
rience, character or general fitness of any applicant or licensee is
such that the participation of such person in harness racing or related
activities would be inconsistent with the public interest, convenience
or necessity or with the best interests of racing generally.
3. Pending final determination of any question under this section, the
[board] COMMISSION may issue a temporary license upon such terms and
conditions as it may deem necessary, desirable or proper to effectuate
the provisions of sections two hundred twenty-two through seven hundred
five of this chapter.
§ 50. Section 310 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 240 of the laws of 2010, is amended to read
as follows:
§ 310. Power of the [state racing and wagering board] COMMISSION to
impose fines and penalties. [In] THE COMMISSION, IN addition to its
power to suspend or revoke licenses granted by [it] THE COMMISSION, [the
state racing and wagering board] is [hereby] authorized and empowered to
impose monetary fines upon any corporation, association or person
participating in any way in any harness race meet at which pari-mutuel
betting is conducted, other than as a patron, and whether licensed by
the [board] COMMISSION or not, for a violation of any provision of this
chapter or the rules promulgated by the [board] COMMISSION pursuant
thereto, not exceeding [twenty-five thousand dollars for each violation]
THE AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER.
The [board] COMMISSION is further authorized and empowered to impose
monetary fines, not exceeding [twenty-five thousand dollars for each
violation] THE AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS
CHAPTER, upon any such corporation, association or person for a
violation of any order issued by the [board] COMMISSION pursuant to the
provisions of this chapter or the rules promulgated by the [board]
COMMISSION pursuant thereto, provided that a copy of such order shall
have been served, either personally or by registered mail, upon the
corporation, association or person to whom the same was directed, prior
S. 7639 46
to the occurrence of the violation for which such fine is imposed. Such
fines shall be paid into the treasury of the state. The action of the
[board] COMMISSION in imposing any monetary fine shall be reviewable in
the supreme court in the manner provided by and subject to the
provisions of article seventy-eight of the civil practice law and rules.
§ 51. Section 311 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 311. Refunds. Moneys received by the [board] COMMISSION pursuant to
this article may within one year from the receipt thereof be refunded to
the party for whose account the same were received on proof satisfactory
to the [board] COMMISSION that:
1. [Such] SUCH moneys were in excess of the amount required by law[.];
2. [The] THE license for which application was made has been refused
by the [board.] COMMISSION;
3. [Such] SUCH moneys were received as a fine and the [board] COMMIS-
SION has after review reduced the amount of such fine[.]; OR
4. [Upon appeal, the court] UPON JUDICIAL REVIEW, A COURT OF COMPETENT
JURISDICTION reduced or remitted the fine imposed.
Such refunds shall, upon approval by the [board] COMMISSION and after
audit by the comptroller, be paid from any moneys in the custody of the
department received pursuant to this article.
§ 52. Subdivision 2 of section 312 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 476 of the laws of 2018, is
amended to read as follows:
2. Any appointment of a special police officer under this section
shall [only] be made ONLY with the approval of the [state racing and
wagering board] COMMISSION. Application for such approval shall be in
such form as may be prescribed by the [board] COMMISSION and shall
contain such other information or material or evidence as the [board]
COMMISSION shall require. In acting on an application for such approval
the [board] COMMISSION shall consider the background, experience, integ-
rity, and competence of the candidate for appointment, the public inter-
est, convenience or necessity and the interests of harness racing gener-
ally. The [board] COMMISSION in its discretion may set the term of any
such appointment, terminate any existing appointment at any time and
prescribe conditions and rules for the conduct of such office.
§ 53. Section 313 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 313. Place and manner of conducting pari-mutuel betting. Any corpo-
ration or association licensed to conduct pari-mutuel betting at a
harness race meeting shall provide a place or places within race meeting
grounds or enclosure at which such licensee shall conduct the pari-mutu-
el system of betting by its patrons on the result of the harness horse
races at such meetings. Such licensee shall cause to be erected a sign
or board upon which shall be displayed the approximate straight odds on
each horse in any race; the total amount wagered upon each horse in each
pool; the value of a [two dollar] TWO-DOLLAR winning mutuel ticket,
straight, place or show on the first three horses in any race; the
elapsed time of the race; the value of a [two dollar] TWO-DOLLAR winning
daily double ticket, if a daily double be conducted, and any other
information that the [state racing and wagering board] COMMISSION may
deem necessary for the guidance of the general public. All machines and
equipment used for pari-mutuel betting or for the display of the forego-
ing information must be approved by the [state racing and wagering
board] COMMISSION and the [state tax commission] DEPARTMENT OF TAXATION
AND FINANCE before being used, but neither the [board] COMMISSION nor
S. 7639 47
the [commission] DEPARTMENT OF TAXATION AND FINANCE shall require the
installation of any particular make of mechanical or electrical equip-
ment.
§ 54. Subdivision 2 of section 314 of the racing, pari-mutuel wagering
and breeding law is amended to read as follows:
2. Notwithstanding the provisions of any general or special statute of
this state or of any local law or ordinance of any municipality within
the state, whether such provision or provisions be penal in character or
otherwise, the provisions of sections two hundred twenty-two through
seven hundred five of this chapter and the rules, regulations and
requirements of the [state racing and wagering board] COMMISSION relat-
ing to the time when and place where or manner in which the harness
races shall be conducted in this state and the control of the grounds
and structures erected or to be erected thereon upon and at which such
racing is conducted and the activities conducted thereat and thereon in
connection with any trial or contest of speed or power of endurance of
harness horses shall be construed and deemed to be exclusive of and
shall supersede any provisions of such other general or special statute,
local law or ordinance in any wise relating thereto, insofar as the same
affect or relate to trotting or harness racing, nor shall the provisions
of article two hundred twenty-five of the penal law be deemed to apply
to pari-mutuel betting conducted pursuant to sections two hundred twen-
ty-two through seven hundred five of this chapter.
§ 55. Section 315 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 315. Bond required of corporation or association conducting pari-mu-
tuel betting. Every corporation or association licensed by the [state
racing and wagering board] COMMISSION to conduct harness horse race
meetings at which pari-mutuel betting shall be permitted, annually and
before the opening of any race meeting shall execute and file with the
state comptroller a bond to this state in a penalty to be fixed by the
[state tax commission] DEPARTMENT OF TAXATION AND FINANCE not exceeding
two hundred fifty thousand dollars, with sureties approved by the attor-
ney general, that it will keep its books and records and make reports as
required by sections two hundred twenty-two through seven hundred five
of this chapter, that it will pay to the state all taxes imposed by this
chapter, that it will distribute to the patrons of pari-mutuel pools
conducted by it all sums due upon presentation of winning tickets held
by them, and that it will otherwise comply with all of the provisions of
sections two hundred twenty-two through seven hundred five of this chap-
ter and with the rules and regulations prescribed by the [state racing
and wagering board] COMMISSION and the [state tax commission] DEPARTMENT
OF TAXATION AND FINANCE.
§ 56. Section 317 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 317. Filing of certain agreements with the [state racing and wager-
ing board] COMMISSION. Every association or corporation licensed to
conduct harness race meetings at which pari-mutuel betting is permitted
shall promptly after entering into any lease, agreement concerning any
concession, labor management relations, the hiring of designated classes
of officers, employees or contractors specified by the [board] COMMIS-
SION or any such other contract, agreement or arrangement as the [state
racing and wagering board] COMMISSION may from time to time prescribe,
file with the [state racing board] COMMISSION a true and correct copy,
or an accurate summary, if oral, thereof.
S. 7639 48
§ 57. Subdivisions 1 and 5 of section 318 of the racing, pari-mutuel
wagering and breeding law, the opening paragraph of subdivision 1 as
amended by section 6 of part F3 of chapter 62 of the laws of 2003, the
second undesignated paragraph of subdivision 1, the opening paragraph of
paragraph a of subdivision 1 and subparagraphs (i) and (ii) of paragraph
a of subdivision 1 as amended and subparagraph (iv) of paragraph b of
subdivision 1 as added by chapter 281 of the laws of 1994, paragraphs a,
b and c of subdivision 1 as amended and subdivision 5 as added by chap-
ter 261 of the laws of 1988, subparagraph (iii) of paragraph a of subdi-
vision 1 and subparagraph (i) of paragraph b of subdivision 1 as amended
by chapter 280 of the laws of 2001, subparagraph (ii) of paragraph b of
subdivision 1 as amended by chapter 484 of the laws of 2000, paragraph d
of subdivision 1 as amended by section 3 of part BB of chapter 60 of the
laws of 2016 and paragraph d of subdivision 5 as amended by chapter 503
of the laws of 1989, are amended to read as follows:
1. Except as otherwise provided by law, every association or corpo-
ration authorized under this article to conduct pari-mutuel betting at a
harness horse race meeting on races run thereat shall distribute all
sums deposited in any pari-mutuel pool to the holders of winning tickets
therein, provided such tickets be presented for payment prior to April
first of the year following the year of their purchase, less an amount
[which] THAT shall be established and retained by such racing associ-
ation or corporation of between fourteen and twenty [per centum] PERCENT
of the total deposits in pools resulting from regular bets, less sixteen
to twenty-two [per centum] PERCENT of the total deposits in pools
resulting from multiple bets, less twenty to thirty [per centum] PERCENT
of the total deposits in pools resulting from exotic bets, and less
twenty to thirty-six [per centum] PERCENT of the total betting deposits
in pools resulting from super exotic bets, plus the breaks. The
retention rate to be established is subject to the prior approval of the
[racing and wagering board] COMMISSION. Such rate may not be changed
more than once per calendar quarter to be effective on the first day of
the calendar quarter.
"Exotic bets" and "multiple bets" shall have the meanings set forth in
section five hundred nineteen of this chapter, "super exotic bets" shall
have the meaning set forth in subdivision four of section three hundred
one of this article and "the breaks" are hereby defined as the odd cents
over any multiple of ten for regular and multiple bets, or for exotic
bets, over any multiple of fifty, or for super exotic bets, over any
multiple of one hundred calculated on the basis of one dollar and other-
wise payable to a patron, provided however, that effective after October
fifteenth, nineteen hundred ninety-four breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars.
a. Of the sum so retained from on-track pari-mutuel betting pools,
such association or corporation authorized to operate in Westchester or
Nassau county: (i) shall pay to the commissioner of taxation and finance
as a reasonable tax for the privilege of conducting pari-mutuel betting
at races run at race meetings held by such corporation or association, a
tax, which is hereby levied, at the [following rates:] RATE of [total
daily on-track pools resulting from regular bets, one and six-tenths per
centum; of the total daily on-track pools resulting from multiple bets,
S. 7639 49
one and thirty-five hundredths per centum; of total daily on-track pools
resulting from exotic bets, four and eighty-five hundredths per centum;
and of total daily on-track pools resulting from super exotic bets,
seven per centum, plus fifty per centum of the breaks. Effective Septem-
ber first, nineteen hundred ninety-four, such tax shall be] one-half of
one [per centum] PERCENT of all wagers FROM TOTAL DAILY ON-TRACK POOLS.
Such association or corporation shall receive credit as a reduction of
the daily tax by the state for the privilege of conducting pari-mutuel
betting of amounts equal to [one and one-half per centum] FOUR-TENTHS
PERCENT of total daily pools resulting from the simulcast of such asso-
ciation's or corporation's races to licensed facilities operated by
regional off-track betting corporations in accordance with section one
thousand eight of this chapter; provided, however, that in no event
shall total daily credit exceed [one and one half per centum] FOUR-
TENTHS PERCENT of the total daily pool of such association or corpo-
ration. [Provided, however, that on and after September first, nineteen
hundred ninety-four, such credit shall be four-tenths percent of total
daily pools resulting from such simulcasting and that in no event shall
such total daily credit exceed four-tenths percent of the total daily
pool of such association or corporation.] An amount equal to fifty [per
centum] PERCENT of such credit shall be used to increase purses[.
Provided]; PROVIDED, however, that for any [twelve month] TWELVE-MONTH
period beginning on April first in nineteen hundred ninety and any year
thereafter, each of the applicable rates set forth above shall be
increased by one-half of one [per centum] PERCENT on all on-track bets
of any such racing association or corporation that did not expend an
amount equal to at least one-half of one [per centum] PERCENT of its
on-track bets during the immediately preceding calendar year for
enhancements consisting of capital improvements as defined by section
three hundred nineteen of this [chapter] ARTICLE, repairs to its phys-
ical plant, structures, and equipment used in its racing or wagering
operations, as certified by the [state racing and wagering board]
COMMISSION to the commissioner of taxation and finance no later than
eighty days after the close of such calendar year, and five special
events at each track in each calendar year, not otherwise conducted in
the ordinary course of business, the purpose of which shall be to
encourage, attract and promote track attendance and encourage new and
continued patronage, which events shall be [approved by the racing and
wagering board] SUBJECT TO THE APPROVAL OF THE COMMISSION for purposes
of this subdivision. In the determination of the amounts expended for
such enhancements, the [board] COMMISSION shall consider the average of
the two immediately preceding [twelve month] TWELVE-MONTH calendar peri-
ods. Notwithstanding the foregoing no increase shall be imposed unless
such corporation or association has been afforded notice and opportunity
to be heard. The [racing and wagering board] COMMISSION shall promulgate
rules and regulations to implement the provisions relating to notice and
hearing.
(ii) except as otherwise provided in this paragraph an amount equal to
six and eight-tenths [per centum] PERCENT of the total pool resulting
from on-track regular bets, an amount equal to seven and ninety-five one
hundredths [per centum] PERCENT of the total pool resulting from
on-track multiple bets, an amount equal to ten and one-half [per centum]
PERCENT of the total pool resulting from on-track exotic bets, an amount
equal to fifteen and one-half [per centum] PERCENT of the total daily
pool resulting from on-track super exotic bets shall be used exclusively
for purses, of which an amount of not less than ninety [per centum]
S. 7639 50
PERCENT shall be used exclusively for purses for overnight races
conducted by such association or corporation. Such amounts may be
reduced upon an application approved by the [board] COMMISSION and an
agreement between the licensed harness racing corporation or association
and the representative horsemen's organization as a condition to reduce
the amounts of retained percentages as provided for in this section.
However, of the total amount available for purses, an amount as deter-
mined by contractual obligations between an organization representing at
least fifty-one [per centum] PERCENT of the owners and trainers [utiliz-
ing] USING the facilities of such association or corporation for racing,
training or stabling purposes and the association or corporation, shall
be used for the administrative purposes of said organization and for
such welfare and medical plans for regularly employed backstretch
employees principally employed at the facilities of such corporation or
association as provided by said organization, provided, however, that
eligibility for benefits in such plans shall not be conditioned upon
membership in such organization by any employee or employer thereof, and
any denial of eligibility for benefits in such plans which, upon inves-
tigation and review by the [board] COMMISSION, is determined to have
resulted from a person, firm, association, corporation or organization
knowingly aiding in or permitting eligibility for benefits being condi-
tioned upon membership in such organization shall subject such organiza-
tion to the penalties imposed under sections three hundred ten and three
hundred twenty-one of this article but the ratio between the amounts
actually expended for such welfare and medical plans and the cost actu-
ally incurred in administering such welfare and medical plans for fiscal
years of such corporation or association, on or after July twenty-
fourth, nineteen hundred eighty-one, shall not be less than the ratio
between such amounts actually expended and such costs actually incurred
for the fiscal year immediately prior to such date. Such organization
shall annually on or before July first certify to the [state racing and
wagering board] COMMISSION that it represents at least fifty-one [per
centum] PERCENT of such owners and trainers and provide copies of such
certification to such association or corporation. Any other organization
claiming to represent at least fifty-one [per centum] PERCENT of such
owners and trainers may file a challenge with the [state racing and
wagering board] COMMISSION within fifteen days of such original certif-
ication. The [state racing and wagering board] COMMISSION shall examine
such claim and may undertake studies and conduct hearings to determine
the validity of such claim. Within sixty days of receiving such chal-
lenge and based upon the findings of such studies and hearings, the
[state racing and wagering board] COMMISSION shall render a decision on
the validity of such claim and advise such organizations and association
or corporation of its determination. Upon receipt of such original
certification by such organization, the association or corporation shall
make such payments to said organization and, in the event of a challenge
brought to any other organization, such payments shall continue to be
made until such time as the [state racing and wagering board] COMMISSION
renders its decision on such challenge; and
(iii) the balance of the retained percentage of such pools and the
balance of the breaks may be held by such association or corporation for
its own use and purposes except as provided in paragraph c of this
subdivision and in subdivision four of section three hundred one of this
article, provided, however, that the [board] COMMISSION shall report
annually, on or before July first, to the director of the budget, the
[chairman] CHAIR of the senate finance committee and the [chairman]
S. 7639 51
CHAIR of the assembly ways and means committee the extent to which such
corporations and associations [utilized] USED such retained percentages
and breakage for operations, maintenance, capital improvements, adver-
tising and promotion, administration and general overhead and evaluate
the effectiveness and make recommendations with respect to the applica-
tion of the reduced rates of taxation as provided for in subparagraph
(i) of this paragraph in accomplishing the objectives stated therein.
Such report shall also specify the amounts of such retained percentages
and breakage used for investments not directly related to racing activ-
ities and such amounts used to declare dividends or other profit
distributions, additions to capital stock, its sale and transfer and
additions to retained earnings. Such reports shall also include an
analysis of any such agreements or proposals to conduct or otherwise
expand wagers authorized under article ten of this chapter and present
its conclusions with respect to the conduct of such wagering, the nature
of such proposals and agreements, and recommendations to ensure the
future maintenance of the intent of this article and article ten of this
chapter.
b. (i) Of the sums retained by any other licensed harness racing asso-
ciation or corporation other than those described in paragraph a of this
subdivision, the applicable tax rates for regular bets shall be six-
tenths of one [per centum] PERCENT; for multiple bets shall be one and
one-tenth [per centum] PERCENT; for exotic bets shall be five and six-
tenths [per centum] PERCENT and for super exotic bets shall be seven
[per centum] PERCENT, plus fifty [per centum] PERCENT of the breaks.
Effective September first, nineteen hundred ninety-four, for all
licensed harness racing associations and corporations [which] THAT have
entered into a contract with their representative horsemen's association
on and after such date, such tax shall be one-half of one [per centum]
PERCENT of all wagers, plus fifty [per centum] PERCENT of the breaks.
Provided, however, that for any [twelve month] TWELVE-MONTH period
beginning on April first in nineteen hundred ninety and any year there-
after, each of the applicable rates set forth above shall be increased
by one-quarter of one [per centum] PERCENT on all on-track bets of any
such racing association or corporation that did not expend an amount
equal to at least one-half of one [per centum] PERCENT of its on-track
bets during the immediately preceding calendar year for enhancements
consisting of capital improvements as defined by section three hundred
nineteen of this article, repairs to its physical plant, structures, and
equipment used in its racing or wagering operations, as certified by the
[state racing and wagering board] COMMISSION to the commissioner of
taxation and finance no later than eighty days after the close of such
calendar year, and five special events at each track in each calendar
year, not otherwise conducted in the ordinary course of business, the
purpose of which shall be to encourage, attract and promote track
attendance and encourage new and continued patronage, which events shall
be [approved by the racing and wagering board] SUBJECT TO THE APPROVAL
OF THE COMMISSION for purposes of this subdivision. In this regard,
expenditures by a county agricultural society pursuant to section three
hundred nineteen of this article shall be credited to the applicable
harness racing association or corporation for this purpose. In the
determination of the amounts expended for such enhancements, the [board]
COMMISSION may consider the immediately preceding [twelve month] TWELVE-
MONTH calendar period or the average of the two immediately preceding
[twelve month] TWELVE-MONTH calendar periods. Notwithstanding the fore-
going no increase shall be imposed unless such corporation or associ-
S. 7639 52
ation has been afforded a notice and opportunity to be heard [and no
increase shall be imposed during nineteen hundred ninety-five on the
authorized harness racing association conducting a special seven day
harness race meeting that did not make such required expenditures during
nineteen hundred ninety-four]. The [racing and wagering board] COMMIS-
SION shall promulgate rules and regulations to implement the provisions
relating to notice and hearing.
Such associations or corporations shall receive credit as a reduction
of the daily tax by the state for the privilege of conducting pari-mutu-
el betting of amounts equal to [one per centum] FOUR-TENTHS PERCENT of
total daily pools resulting from the simulcast of such association's or
corporation's races to licensed facilities operated by regional off-
track betting corporations in accordance with section one thousand eight
of this chapter, provided however, that in no event shall the total
daily credit exceed [one per centum] FOUR-TENTHS PERCENT of the total
daily pool of such association or corporation which tax is hereby levied
and shall be paid to the commissioner of taxation and finance as a
reasonable tax imposed by the state for the privilege of conducting
pari-mutuel betting at races run at race meetings held by such associ-
ation or corporation. [Provided, however, that on and after September
first, nineteen hundred ninety-four such credit shall be four-tenths
percent of total daily pools resulting from such simulcasting and that
in no event shall such total daily credit exceed four-tenths percent of
the total daily pool of such association or corporation.] The [racing
and wagering board] COMMISSION shall report annually, before July first,
to the director of the budget, the [chairman] CHAIR of the senate
finance committee and the [chairman] CHAIR of the assembly ways and
means committee the extent to which such corporations and associations
[utilized] USED such retained percentages and breakage for operations,
maintenance, capital improvements, advertising and promotion, adminis-
tration and general overhead and evaluate the effectiveness and make
recommendations with respect to the application of the reduced rates of
taxation as provided for in this subparagraph in accomplishing the
objectives stated therein. Such report shall also specify the amounts of
such retained percentages and breakage used for investments not directly
related to racing activities and such amounts used to declare dividends
or other profit distributions, additions to capital stock, its sale and
transfer and additions to retained earnings. Such reports shall also
include an analysis of any such agreements or proposals to conduct or
otherwise expand wagers authorized under article ten of this chapter and
present its conclusions with respect to the conduct of such wagering,
the nature of such proposals and agreements, and recommendations to
ensure the future maintenance of the intent of this article.
(ii) Of the sums retained by such association or corporation, an
amount equal to one and three-quarters [per centum] PERCENT of the total
pool resulting from on-track regular, multiple and exotic bets shall be
used exclusively for the purpose of increasing purses awarded in over-
night races conducted by such association or corporation. Such amounts
shall be in addition to purse moneys otherwise provided pursuant to
existing contractual obligations. In this regard an amount equal to
twelve [per centum] PERCENT of the total bets in super exotic pools
shall be used for purses in lieu of any such contractual obligations
[which] THAT might otherwise apply to purses to be awarded on super
exotic bets. Any portion of such amount not so used during any year
shall be so used during the following year, failing which such portion
shall be payable to the commissioner of taxation and finance as addi-
S. 7639 53
tional tax. In addition to the amounts required in this paragraph, fifty
percent of all additional sums retained, as a result of tax reductions
provided in this section after September first, nineteen hundred nine-
ty-four to qualified licensed harness racing associations, shall be used
exclusively for purposes of increasing purses awarded in overnight races
conducted by such association or corporation, provided that such associ-
ation or corporation has entered into a written agreement with its
representative horsemen's organization on and after September first,
nineteen hundred ninety-four. Notwithstanding anything contained herein
to the contrary, in a harness special betting district the amount to be
used for purses or the methodology for calculating the amount to be used
for purses may be specified in a written contract between a harness
racing association or corporation and its representative horsemen's
association. The balance of the retained percentage of such pool may be
held by such corporation or association for its own use and purposes.
(iii) Of the amount of the breaks from on-track regular, multiple,
exotic and super exotic bets such association or corporation shall pay
fifty [per centum] PERCENT to THE commissioner of taxation and finance.
The balance of such breaks may be held by such association or corpo-
ration for its own use and purposes.
(iv) The [state racing and wagering board] COMMISSION shall as a
condition of racing require an association authorized to operate in
areas other than Westchester or Nassau county to withhold one percent of
all purses and to pay such sum to the horsemen's organization represent-
ing the owners and trainers [utilizing] USING the facilities of such
association which had a contract with the association governing the
conditions of racing on January first, nineteen hundred ninety-two, as
determined by the [board] COMMISSION.
Any other horsemen's organization may apply to the [board] COMMISSION
to be approved as the qualified organization to receive payment of the
one percent of all purses by submitting to the [board] COMMISSION proof
of both, that (i) [it] SUCH ORGANIZATION represents more than fifty-one
percent of all the owners and trainers [utilizing] USING the same facil-
ities and (ii) the horsemen's organization previously approved as quali-
fied by the [board] COMMISSION does not represent fifty-one percent of
all the owners and trainers [utilizing] USING the same facilities. If
the [board] COMMISSION is satisfied that the documentation submitted
with the application of any other horsemen's organization is conclusive
with respect to SUBPARAGRAPHS (i) and (ii) [above] OF THIS PARAGRAPH,
[it] THE COMMISSION may approve the applicant as the qualified recipient
organization.
In the best interests of racing, upon receipt of such an application,
the [board] COMMISSION may direct the payments to the previously quali-
fied horsemen's organization to continue uninterrupted, or it may direct
the payments to be withheld and placed in interest-bearing accounts for
a period not to exceed ninety days, during which time the [board]
COMMISSION shall review and approve or disapprove the application. Funds
held in such manner shall be paid to the organization approved by the
[board] COMMISSION. In no event shall the [board] COMMISSION accept more
than one such application in any calendar year from the same horsemen's
organization.
The funds authorized to be paid by the [board] COMMISSION are to be
used exclusively for the benefit of those horsemen racing in New York
state through the administrative purposes of such qualified organiza-
tion, benevolent activities on behalf of backstretch employees, and for
the promotion of equine research.
S. 7639 54
c. Of the sums retained by any harness racing association or corpo-
ration, an amount equal to [three-fifths of] one [per centum] PERCENT of
the total pools resulting from on-track regular, multiple and exotic
bets and an amount equal to three [per centum] PERCENT of the total
pools resulting from on-track super exotic bets shall be paid to the
agriculture and New York state horse breeding development fund[,
provided, however, that after April first, nineteen hundred eighty-six,
the amount to be paid to the agriculture and New York state horse breed-
ing development fund shall equal one per centum of the total pools
resulting from on-track regular, multiple and exotic bets and an amount
equal to three per centum of the total pools resulting from super exotic
bets].
d. Every harness racing association or corporation shall pay to the
[gaming] commission as a regulatory fee, which fee is hereby levied,
six-tenths of one percent of the total daily on-track pari-mutuel pools
of such association or corporation.
5. Tax rates in event of failure to maintain pari-mutuel racing activ-
ity. a. Notwithstanding any other provision of this section to the
contrary, for any calendar year commencing on or after January first,
nineteen hundred eighty-nine, in which a harness racing association or
corporation does not conduct a minimum number of pari-mutuel programs
and pari-mutuel races at its facilities equal to at least ninety [per
centum] PERCENT of the programs and races so conducted during nineteen
hundred eighty-five or during nineteen hundred eighty-six, whichever is
less, in lieu of the tax rates set forth in subdivision one of this
section the applicable pari-mutuel tax rates for such association or
corporation with respect to on-track pari-mutuel betting pools during
such year shall be as follows:
(i) For such an association or corporation authorized to operate in
Westchester or Nassau county: of total daily on-track pools resulting
from regular bets, three and seventy-five hundredths [per centum]
PERCENT of the first five hundred thousand dollars comprising such pools
and five and twenty-five hundredths [per centum] PERCENT of the amount
in excess of five hundred thousand dollars, plus fifty [per centum]
PERCENT of the breaks; of total daily on-track pools resulting from
multiple bets, four and seventy-five hundredths [per centum] PERCENT of
the first three hundred thousand dollars comprising such pools and six
and twenty-five hundredths [per centum] PERCENT of the amount in excess
of three hundred thousand dollars, plus fifty [per centum] PERCENT of
the breaks; of total daily on-track pools resulting from exotic bets,
eight and seventy-five hundredths [per centum] PERCENT of the first two
hundred thousand dollars comprising such pools, and ten and twenty-five
hundredths [per centum] PERCENT of the amount in excess of two hundred
thousand dollars, plus fifty [per centum] PERCENT of the breaks; and of
total daily on-track pools resulting from super exotic bets, seven [per
centum] PERCENT, plus fifty [per centum] PERCENT of the breaks; and
(ii) For any harness racing association or corporation other than one
described in subparagraph (i) of this paragraph: of total daily on-track
pools resulting from regular bets, one and one-half [per centum]
PERCENT, plus fifty [per centum] PERCENT of the breaks; of total daily
on-track pools resulting from multiple bets, two [per centum] PERCENT,
plus fifty [per centum] PERCENT of the breaks; of total daily on-track
pools resulting from exotic bets, six and one-half [per centum] PERCENT,
plus fifty [per centum] PERCENT of the breaks; and of total daily
on-track pools resulting from super exotic bets, seven [per centum]
PERCENT, plus fifty [per centum] PERCENT of the breaks.
S. 7639 55
b. The provisions of this subdivision shall not apply to an associ-
ation or corporation for any calendar year for which the [state racing
and wagering board] COMMISSION certifies to the commissioner of taxation
and finance:
(i) by December fifteenth of the year immediately preceding such year,
that such association or corporation has been assigned for such year,
from the programs and races it requested, at least the minimum number of
programs and races prescribed in paragraph a of this subdivision, or, if
fewer than such number were assigned for such year, that the assignment
of such lesser number was for good cause due to factors beyond the
control of such association or corporation or because the [board]
COMMISSION found that it would be uneconomical or impractical for such
association or corporation to be assigned the prescribed number; and
(ii) by January thirty-first of the year immediately subsequent to
such year, that such association or corporation did conduct such number
of programs and races as were certified pursuant to subparagraph (i) of
this paragraph, or if it failed to conduct such number that such failure
was for good cause due to factors beyond its control or because the
[board] COMMISSION found it uneconomical or impractical for such associ-
ation or corporation to conduct such a number.
c. For any calendar year for which the [state racing and wagering
board] COMMISSION does not certify pursuant to the provisions of subpar-
agraph (i) of paragraph b of this subdivision with respect to an associ-
ation or corporation, the tax imposed by this section shall be computed
by substituting the provisions of paragraph a of this subdivision for
the provisions of paragraph a or b, whichever is applicable, of subdivi-
sion one of this section and shall pay the tax so computed to the
commissioner of taxation and finance. In such computation and payment,
all other provisions of this section shall apply as if the provisions of
this paragraph and of paragraph a of this subdivision had been incorpo-
rated in whole in paragraph a or b, whichever is applicable, of subdivi-
sion one of this section.
d. For any calendar year for which the [state racing and wagering
board] COMMISSION does not certify pursuant to the provisions of subpar-
agraph (ii) of paragraph b of this subdivision with respect to an asso-
ciation or corporation, the tax required to be paid hereunder for such
year shall be equal to the difference between the tax imposed pursuant
to the provisions of paragraph a of this subdivision and the tax imposed
pursuant to the provisions of paragraph a or b, whichever is applicable,
of subdivision one of this section, less one-half of such difference in
recognition of purses [which] THAT were required to be paid, plus an
additional amount equal to ten [per centum] PERCENT of such tax in the
event of a willful failure to comply with the provisions of subparagraph
(ii) of paragraph b of this subdivision and such association or corpo-
ration shall pay the tax so computed to the commissioner of taxation and
finance on or before March fifteenth of the following year. Notwith-
standing the provisions of this subdivision, in the event that upon
appeal from the determination of the [state racing and wagering board]
COMMISSION that the certification provided in paragraph b of this subdi-
vision will not be made, it is finally determined that [such board was
erroneous] THE COMMISSION ERRED in failing to so certify and that any
moneys received by the commissioner of taxation and finance under para-
graph c of this subdivision were paid in error, the same shall be
refunded at the rate of interest of six percent per annum. Payment of
such tax due, or the anticipation of such payment, shall not affect the
determination of purses in the year in which such tax arises or in the
S. 7639 56
year in which such payment is made nor shall such payment in any other
manner be considered in any statutory or [contractural] CONTRACTUAL
calculation of purse obligations.
e. Written notice of the certification of the [board] COMMISSION
pursuant to the provisions of paragraph b of this subdivision shall be
given by the [board] COMMISSION to the [appplicable] APPLICABLE associ-
ation or corporation by the dates therein specified. In like manner,
written notice that such certification will not be made shall be given
by the [board] COMMISSION to the commissioner of taxation and finance
and the applicable association or corporation by such dates.
§ 58. Section 319 of the racing, pari-mutuel wagering and breeding
law, as added by chapter 687 of the laws of 1983, subdivision 2 as
amended by chapter 532 of the laws of 1989, paragraph (a) of subdivision
2 as amended by chapter 2 of the laws of 1995 and subdivision 3 as
amended by chapter 116 of the laws of 2001, is amended to read as
follows:
§ 319. Capital improvements. 1. [Definitions.] For the purposes of
this section, [the following terms shall have the meanings set forth
unless the context requires a different meaning:
a. "Board" shall mean the New York state racing and wagering board.
b. "Capital] "CAPITAL improvement" shall mean any addition to,
replacement of or remodeling of the physical plant, structures and
equipment now or hereafter owned or leased by a racing corporation or
association [which] THAT is used or is to be used by such corporation or
association in connection with the conduct of horse race meetings, and
shall include improvements to land but not land itself.
2. (a) Notwithstanding the provisions of section three hundred eigh-
teen of this article, a harness track, may elect upon thirty days writ-
ten notice to the [racing and wagering board] COMMISSION to withhold, in
addition to any other amounts required by this section, one [per centum]
PERCENT of the total deposits in pools resulting from regular and multi-
ple bets, provided, however, that any harness track withholding pursuant
to this subdivision shall use at least fifty percent of such one [per
centum] PERCENT exclusively for capital improvements as defined in
subdivision one of this section subject to the rules and regulations of
the [racing and wagering board] COMMISSION. An amount, not to exceed
fifty percent of such one [per centum] PERCENT, may be used for adver-
tising and promotion expenses subject to the rules and regulations of
the [board] COMMISSION. Provided further, however, that if the harness
track was owned prior to December thirty-first, nineteen hundred eight-
y-five, by a nonprofit county agricultural society and leased by a
racing association such one [per centum] PERCENT shall be paid by the
association to the society as additional rent. Such society shall use
such one [per centum] PERCENT exclusively for capital improvements as
defined in subdivision one of this section subject to the rules and
regulations of the [racing and wagering board] COMMISSION. The capital
improvements shall be determined by a committee of the society composed
of the executive director of the society, the [chairman] CHAIR of the
board of directors of the racing association, or his OR HER designee,
and the general manager of the racing association. For the purposes of
this paragraph the term "advertising" shall be limited to paid advertis-
ing through radio, television, the print media, direct mail or bill-
boards. Promotions shall mean activities [which] THAT are intended to
increase the attendance at, or visibility of, a harness track and shall
include premium [give-aways] GIVEAWAYS, prizes, free admission, free
parking, free programs, additional monies for purses or other activities
S. 7639 57
of a promotional nature which stimulate on track attendance. In no event
shall this section be construed to permit the payment of salaries to
employees of such a harness track who are engaged in advertising or
promotional activities.
(b) At least once annually, prior to approving any plan for the
expenditure of such capital improvement funds pursuant to this section,
the [board] COMMISSION shall, together with the track operator and
representatives of the horsemen's organization representing owners and
trainers [utilizing] USING the facility, inspect the entire facility,
including the area commonly referred to as the backstretch, in order to
determine whether the capital improvement plan submitted by the associ-
ation or corporation for [board] COMMISSION approval includes adequate
provision for expenditures relating to the continued health, safety and
well-being of patrons, backstretch personnel and the horses in their
care. After such inspection, if the [board] COMMISSION shall determine
that such proposed plan does not include adequate provision for repairs
and improvements necessary to correct any conditions that it has deter-
mined to be unsafe or otherwise deleterious to the health and safety of
patrons, employees or horses, the [board] COMMISSION shall require the
track operator to modify its capital improvement plan to provide for the
expenditure of funds for such repairs and improvements.
3. On or after July first, nineteen hundred ninety for a harness track
other than a harness track authorized to operate in Westchester or
Nassau county or a harness track owned by a non-profit county agricul-
tural society and leased by a harness racing association such amounts as
may be withheld for the purposes of this section shall be deposited in a
trust fund, kept and maintained by such corporation or association and
administered by a trustee approved by the [racing and wagering board]
COMMISSION for the purpose of lending such sums and any interest thereon
on an unsecured basis to such corporation or association exclusively for
capital improvements as defined in subdivision one of this section. All
such amounts borrowed by such corporation or association from such trust
shall be forgiven and deemed satisfied according to a schedule of depre-
ciation deductions for federal and New York state income tax purposes
for such related capital improvements. It is further provided that at
such time as such corporation or association shall surrender its pari-
mutuel license or fail to apply for a pari-mutuel license for the
succeeding year by December thirty-first of the preceding year that the
[racing and wagering board] COMMISSION may declare the trust fund at an
end and all sums therein deposited plus all sums due or owing from such
corporation or association to such trust shall be disposed of in accord-
ance with provisions of law to be enacted for such purpose; except that
the [racing and wagering board] COMMISSION shall direct that such sums
therein deposited and all sums due and owing from such corporation or
association be transferred to the credit of a successor in interest to
such corporation or association upon the licensing of such successor in
interest by the [board] COMMISSION. Such trust shall be established and
administered pursuant to the rules and regulations of the [racing and
wagering board] COMMISSION.
§ 59. Section 320 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 320. Revocation of license. The [state racing and wagering board]
COMMISSION may revoke or suspend a license for the conduct of harness
race meetings at which pari-mutuel betting is conducted:
a. For any cause [which] THAT would permit or require its refusal to
issue a license, or
S. 7639 58
b. If it shall determine that: the corporation or association to which
such license shall have been issued, or its officers or directors, fail
to conduct racing at its track, including pari-mutuel betting on the
races thereat, in accordance with the terms and conditions of such
license, the rules of [such board] THE COMMISSION or of the [state tax
commission] DEPARTMENT OF TAXATION AND FINANCE, or the provisions of
sections two hundred twenty-two through seven hundred five of this chap-
ter, or if such corporation or association or its officers or directors
shall knowingly permit on its grounds or within the enclosure of its
racetrack, lotteries, pool-selling or bookmaking, or any other kind of
gambling, in violation of sections two hundred twenty-two through seven
hundred five of this chapter or of the penal law.
§ 60. Section 321 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 321. Hearing of refusal or revocation of license. If the [state
racing and wagering board shall refuse] COMMISSION REFUSES to grant a
license applied for under sections two hundred twenty-two through seven
hundred five of this chapter, or [shall revoke] REVOKES or [suspend]
SUSPENDS such a license granted by it, or [shall impose] IMPOSES a mone-
tary fine upon a participant in harness racing the applicant or licensee
or party fined may demand, within ten days after notice of [the said]
SUCH act of the [board] COMMISSION, a hearing before the [board] COMMIS-
SION and the [board] COMMISSION shall give prompt notice of a time and
place for such hearing at which the [board] COMMISSION will hear such
applicant or licensee or party fined in reference thereto. Pending such
hearing and final determination [thereon], the action of the [board]
COMMISSION in refusing to grant or in revoking or suspending a license
or in imposing a monetary fine shall remain in full force and effect.
The [board] COMMISSION may continue such hearing from time to time for
the convenience of any of the parties. Any of the parties affected by
such hearing may be represented by counsel, and the [board] COMMISSION
may be represented by the attorney general, a deputy attorney general or
its counsel. In the conduct of such hearing the [board] COMMISSION shall
not be bound by technical rules of evidence, but all evidence offered
before the [board] COMMISSION shall be reduced to writing, and such
evidence together with the exhibits, if any, and the findings of the
[board] COMMISSION, shall be permanently preserved and shall constitute
the record of the [board] COMMISSION in such case. In connection with
such hearing, each member of the [board] COMMISSION shall have the power
to administer oaths and examine witnesses, and may issue subpoenas to
compel attendance of witnesses, and the production of all material and
relevant reports, books, papers, documents, correspondence and other
evidence. The [board] COMMISSION may, if occasion shall require, by
order, refer to one or more of its members or officers, the duty of
taking testimony in such matter, and to report thereon to the [board]
COMMISSION, but no determination shall be made therein except by the
[board] COMMISSION. Within thirty days after the conclusion of such
hearing, the [board] COMMISSION shall make a final order in writing,
setting forth the reasons for the action taken by it and a copy thereof
shall be served on such applicant or licensee or party fined, as the
case may be. The action of the [board] COMMISSION in refusing to grant a
license or in revoking or suspending a license or in imposing a monetary
fine shall be reviewable in the supreme court in the manner provided by
the provisions of article seventy-eight of the civil practice law and
rules.
S. 7639 59
§ 61. Section 322 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 322. Approval of plans of corporation or association. The [state
racing and wagering board] COMMISSION shall not grant to a corporation
or association hereafter formed pursuant to sections two hundred twen-
ty-two through seven hundred five of this chapter, a license to conduct
a harness race meeting at which pari-mutuel betting may be conducted
within the state until such corporation or association shall have
submitted to the [board] COMMISSION a statement of the location of its
proposed grounds and racetrack, together with a plan of such racetrack,
and plans of all buildings, seating stands and other structures in such
form as the [board] COMMISSION may prescribe, and such plans shall have
been approved in writing by the [board] COMMISSION. Such plans shall
show that its paddock and barn areas can accommodate and serve the needs
of horses and horse trainers that participate in live racing at such
facility. Alterations or discontinuance of existing buildings, seating
stands and other structures, and the erection of new or additional
buildings, seating stands or other structures may be made only with the
prior written approval of the [board] COMMISSION and after examination
and inspection of the plans thereof and the issuance of a permit there-
for by the [state racing and wagering board] COMMISSION. The [board]
COMMISSION at the expense of the applicant may order such engineering
examination thereof as the [board] COMMISSION may deem necessary. The
approval of the certificate of incorporation of such corporation or
association shall not be deemed to vest in it the right to a license to
conduct harness race meetings at such race course or racetrack unless
such grounds, track, buildings, seating stands and other structures
shall be completed in accordance with the plans approved by the [board]
COMMISSION.
§ 62. Section 324 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 370 of the laws of 2011, is amended to read
as follows:
§ 324. Free or reduced fee passes, cards or badges. A corporation or
association licensed to conduct pari-mutuel betting on harness horse
races run at its racetrack may issue free passes, cards or badges to any
qualified person. A qualified person shall include, but need not be
limited to, officers and employees of the corporation or association
conducting the race meeting, members, officers, and employees of the
[state racing and wagering board] COMMISSION, members of harness racing
associations of other states and foreign countries, public officers
engaged in the performance of their duties, persons actually employed
and accredited by the press to attend such meetings, owners, stable
managers, trainers, drivers, concessionaires, spouses, domestic partners
and children of owners, trainers and drivers, other persons whose actual
duties require their presence at such racetrack, and any other person or
guest deemed appropriate by such corporation or association. In addi-
tion, free or reduced fee passes, cards or badges may be issued to the
general public or segments of the general public in connection with any
promotional campaign or marketing program sponsored by such corporation
or association to increase attendance at live race meets. The issuance
of free passes, cards or badges shall be under the rules and regulations
of the [state racing and wagering board] COMMISSION.
§ 63. Subdivisions 1 and 2 of section 330 of the racing, pari-mutuel
wagering and breeding law, subdivision 1 as amended and subdivision 2 as
S. 7639 60
added by section 12 of part A of chapter 60 of the laws of 2012, are
amended to read as follows:
1. There is hereby created within the state gaming commission the
"agriculture and New York state horse breeding development fund". Such
fund shall be a body corporate and politic constituting a public benefit
corporation. It shall be administered by a board of directors consisting
of the [chairman] CHAIR of the [state gaming] commission or his or her
designee, the commissioner of agriculture and markets, and three members
appointed by the governor, all of whom are experienced or have been
actively engaged in the breeding of standardbred horses in New York
state, one upon the recommendation of the temporary president of the
senate and one upon the recommendation of the speaker of the assembly.
The governor shall designate the chair from among the sitting members OF
SUCH BOARD OF DIRECTORS, who shall serve as such at the pleasure of the
governor. Appointed members shall serve for a term of four years and
shall continue to hold office until their successors are appointed and
qualified. The members of the BOARD OF DIRECTORS OF THE fund shall
receive no compensation from the fund for their services as such members
but shall be reimbursed by the fund for the expenses actually and neces-
sarily [incurred by them] THEY INCUR in the performance of their duties
under sections two hundred twenty-two through seven hundred five of this
chapter. Such fund shall have perpetual existence and shall exercise all
powers authorized by this chapter and reasonably necessary for accom-
plishing its purposes. Such powers shall be exercised in the name of the
fund.
2. The board OF DIRECTORS OF THE FUND may delegate to one or more of
the members or officers of the fund such powers and duties as it may
deem proper and shall [utilize] USE, pursuant to a contract OR MEMORAN-
DUM OF UNDERSTANDING approved by the director of the budget, the service
employees of the [state gaming] commission and the state office of
racing promotion and development.
§ 64. Section 401 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 401. General powers of [state racing and wagering board] COMMISSION.
1. Pursuant to the provisions of sections two hundred twenty-two through
seven hundred five of this chapter, the [state racing and wagering
board] COMMISSION shall have power to supervise generally all quarter
horse race meetings in this state at which pari-mutuel betting is
conducted. The [board] COMMISSION may adopt rules and regulations not
inconsistent with sections two hundred twenty-two through seven hundred
five of this chapter to carry into effect its purposes and provisions
and to prevent circumvention or evasion thereof. In order that the rules
of quarter horse racing may be uniform throughout the United States, the
[board] COMMISSION may adopt the rules and regulations of the American
Quarter Horse Association, in whole or in part, and may adopt such other
or different rules as it deems necessary to carry into effect the
purposes and provisions of sections two hundred twenty-two through seven
hundred five of this chapter.
2. Without limiting the generality of the foregoing, and in addition
to its other powers:
a. The [state racing and wagering board] COMMISSION shall have power
to fix minimum and maximum charges for admission to quarter horse race
meetings at which pari-mutuel betting is conducted provided, however,
that the [state racing and wagering board] COMMISSION shall have power
to fix the charge for admission of members of the armed forces of the
S. 7639 61
United States in uniform at one-half of the amount fixed for such admis-
sion generally under authority of this section.
b. The [state racing and wagering board] COMMISSION shall prescribe
rules and regulations for effectually preventing the use of improper
devices, the administration of drugs or stimulants or other improper
acts for the purpose of affecting the speed of quarter horses in any
race in which they are about to participate.
c. The rules of the [board] COMMISSION shall also provide that all
winning pari-mutuel tickets must be presented for payment before April
first of the year following the year of their purchase and failure to
present any such ticket within the prescribed period of time shall
constitute a waiver of the right to participate in the award or divi-
dend.
d. The [board] COMMISSION shall have power in its discretion, consist-
ent with the powers of the [state tax commission] DEPARTMENT OF TAXATION
AND FINANCE, to prescribe uniform methods of keeping accounts, records
and books to be observed by associations or corporations licensed under
the provisions of this article or by any association or corporation
[which] THAT owns stock in, or shares in the profits, or participates in
the management or affairs of, such licensed association or corporation,
or by any person, firm, association or corporation holding any conces-
sion, right or privilege to perform any service or sell any article at
any track at which pari-mutuel quarter horse racing meets are conducted.
The [board] COMMISSION may also in its discretion, consistent with the
powers of the [state tax commission] DEPARTMENT OF TAXATION AND FINANCE,
prescribe by order forms of accounts, records and memoranda to be kept
by such persons, firms, associations or corporations. The [board]
COMMISSION shall have power to visit, investigate, and place expert
accountants, or such other persons as it may deem necessary, in the
offices, tracks or other places of business of any such person, firm,
association or corporation for the purpose of seeing that the provisions
of sections two hundred twenty-two through seven hundred five of this
chapter and rules and regulations issued by the [board] COMMISSION ther-
eunder are strictly complied with. Such persons, firms, associations or
corporations shall annually file with the [board] COMMISSION, on such
date as the [board] COMMISSION shall prescribe, a report showing their
financial condition and financial transactions during the fiscal year,
including a balance sheet and a profit and loss statement, verified by
the oath of at least two of its principal officers, if it be an associ-
ation or corporation having officers, and by one or more of the owners
or proprietors thereof if not an association or corporation. The report
shall be in such form and contain such other matters as the [board]
COMMISSION may determine from time to time to be necessary to disclose
accurately the financial condition and operation of such persons, firms,
associations or corporations during the preceding fiscal year. The
[board] COMMISSION may for good cause shown grant a reasonable extension
of time for the filing of any such report.
§ 65. The second undesignated paragraph of section 402 of the racing,
pari-mutuel wagering and breeding law is amended to read as follows:
No certificate of incorporation under this section shall hereafter be
filed without the approval of the [state racing and wagering board]
COMMISSION indorsed thereon or annexed thereto.
§ 66. Section 403 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 403. Filing of information concerning stock transfers; necessity for
[board's] COMMISSION approval. 1. Whenever THERE IS a transfer of stock
S. 7639 62
of any association or corporation [which] THAT is licensed under this
article, or of any association or corporation [which] THAT leases to
such licensee the track at [which] THAT it conducts pari-mutuel quarter
horse races, or which owns twenty-five percent or more of the stock of
such licensee [shall be made], there shall be filed simultaneously with
the association or corporation [which] THAT issued such stock the
following:
a. In duplicate, an affidavit executed by the transferee stating that
he OR SHE is to be the sole beneficial owner thereof, and whether or not
he OR SHE (i) has been convicted of a crime involving moral turpitude,
(ii) has been engaged in bookmaking or other forms of illegal gambling,
(iii) has been found guilty of any fraud or misrepresentation in
connection with racing or breeding, (iv) has been guilty of any
violation or attempt to violate any law, rule or regulation of any
racing jurisdiction for which suspension from racing might be imposed in
such jurisdiction, or (v) has violated any rule, regulation or order of
the [board] COMMISSION; if the transferee is not, or is not to be, the
sole beneficial owner thereof, then there shall be annexed to said affi-
davit of the transferee, and expressly stated in such affidavit to be
deemed a part thereof, a true and complete copy, or if oral, a complete
statement of all the terms, of the agreement or understanding pursuant
to which the stock is to be so held by the transferee, including a
detailed statement of the interest therein of each person who is to have
any interest therein; and at the same time.
b. In duplicate, an affidavit executed by each person for whom the
said stock, or any interest therein, is to be held by said transferee,
setting forth whether or not the affiant (i) has been convicted of a
crime involving moral turpitude, (ii) has engaged in bookmaking or other
forms of illegal gambling, (iii) has been found guilty of any fraud or
misrepresentation in connection with racing or breeding, (iv) has been
guilty of any violation or attempt to violate any law, rule or regu-
lation of any racing jurisdiction for which suspension from racing might
be imposed in such jurisdiction, or (v) has violated any rule, regu-
lation or order of the [board] COMMISSION; to each of which affidavits
shall be annexed, and expressly stated in such affidavit to be deemed a
part thereof, a true and complete copy, or if oral, a complete statement
of all the terms of the agreement or understanding pursuant to which the
stock is to be so held by the transferee, including a detailed statement
of the interest therein of each person who is to have any interest ther-
ein.
c. Said association or corporation shall forthwith file with the
[board] COMMISSION one of each of said duplicate affidavits.
2. If, after the filing of any affidavit [hereinabove] required to be
filed BY SUBDIVISION ONE OF THIS SECTION, there [be] IS any change in
the status of any such affiant with respect to any of the matters set
forth in [subparagraph (i), (ii), (iii), (iv) or (v)] PARAGRAPH A OR B
of subdivision one of this section, of the affidavit [theretofore] filed
by [him] SUCH AFFIANT, THEN such affiant shall forthwith file with the
association or corporation with which his OR HER affidavit was so filed
a new affidavit, executed by him OR HER in duplicate, setting forth such
change of status, and the association or corporation shall forthwith
file one of said affidavits with the [board] COMMISSION.
3. Whenever any change shall be made in the amount, nature, or other-
wise, of the interest of any person having an interest in stock of any
such association or corporation, or any new interest shall be created
therein, without a transfer thereof as [hereinabove] provided IN THIS
S. 7639 63
SECTION, the record owner of such stock, and each person whose interest
therein has been so attempted to be changed or created, shall file with
the association or corporation [which] THAT issued such stock, in dupli-
cate, affidavits as provided by paragraphs a and b of subdivision one of
this section, except that such affidavits need not include the matters
referred to in [subparagraphs (i), (ii), (iii), (iv) and (v)] PARAGRAPH
A OR B of subdivision one of this section, unless then required pursuant
to subdivision two of this section, and one copy thereof shall forthwith
be filed by the association or corporation with the [board] COMMISSION.
4. The [board] COMMISSION may, upon application to it for good cause
shown, waive compliance with subdivisions one, two and three of this
section.
5. If the [board] COMMISSION determines that it is inconsistent with
the public interest, convenience or necessity, or with the best inter-
ests of racing generally, that any person continue to be a stockholder
of record or the beneficial owner of any interest in stock standing in
the name of another, in any association or corporation licensed under
this article, or of any association or corporation [which] THAT leases
to such licensee the track at which it conducts pari-mutuel quarter
horse racing or [which] THAT owns twenty-five percent or more of the
stock of such licensee, the [board] COMMISSION shall have full power and
authority to order or direct each such stockholder or beneficial owner
irrespective of the time when such stockholder or beneficial owner
acquired his OR HER stock or interest therein to dispose of such stock
or interest within a period of time to be specified by the [board]
COMMISSION, which period the [board] COMMISSION shall have full power
and authority to extend from time to time.
6. If the [board] COMMISSION shall make any order or direction as
provided in subdivision five of this section, the person aggrieved
thereby shall be given notice of the time and place of a hearing before
the [board] COMMISSION at which the board will hear such person in
reference thereto. The action of the [board] COMMISSION in making any
such order or direction shall be reviewable in the courts of this state
in the manner provided by, and subject to the provisions of article
seventy-eight of the civil practice law and rules.
7. Upon application of the [board] COMMISSION, the supreme court of
this state shall have jurisdiction to issue final orders, on notice and
after hearing, commanding any person to comply with the provisions of
the orders or directions issued by the [board] COMMISSION under subdivi-
sion five of this section.
8. In case of conflict between this section and article eight of the
uniform commercial code, this section shall control.
§ 67. Section 404 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 404. Right to hold quarter horse race meetings and races. Any corpo-
ration formed under the provisions of the pari-mutuel revenue law, and
any corporation and association [which] THAT shall have conducted quar-
ter horse race meetings during two years prior to the enactment of the
pari-mutuel revenue law, and any town or county fair association or
other fair association shall have the power and the right to hold one or
more quarter horse race meetings in each year and to hold, maintain and
conduct quarter horse races at such meetings. At such quarter horse race
meetings the corporation or association, or the owners of horses engaged
in such races, or others who are not participants in the race, may
contribute purses, prizes, premiums or stakes to be contested for, but
no person or persons other than the owner or owners of a horse or horses
S. 7639 64
contesting in a race shall have any pecuniary interest in a purse,
prize, premium or stake contested for in such race, or be entitled to or
receive any portion thereof after such race is finished, and the whole
of such purse, prize, premium or stake shall be allotted in accordance
with the terms and conditions of such race. [Such meeting shall not be
held except during the period extending from the first day of January to
the thirty-first day of December, inclusive in each year.] Such power
and right, however, shall not include the right to conduct pari-mutuel
betting at such quarter horse race meetings except pursuant to license
granted by the [state racing and wagering board] COMMISSION pursuant to
sections two hundred twenty-two through seven hundred five of this chap-
ter.
§ 68. Section 405 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 405. Pari-mutuel betting at quarter horse races. No more than five
corporations or associations shall be licensed by the [state racing and
wagering board] COMMISSION in any one year to conduct a pari-mutuel meet
or meets. Said pari-mutuel betting conducted at such meetings shall be
under the general supervision and control of the [state racing and
wagering board] COMMISSION which shall make rules regulating the conduct
of such pari-mutuel betting in accordance with the provisions of
sections two hundred twenty-two through seven hundred five of this chap-
ter. The [state tax commission] DEPARTMENT OF TAXATION AND FINANCE is
charged with the financial administration of pari-mutuel betting as
prescribed in this article and as supplemented by the rules and regu-
lations of the [board] COMMISSION. The [state tax commission] DEPARTMENT
OF TAXATION AND FINANCE shall have authority to prescribe the forms and
the system of accounting to be employed, and through its representatives
shall at all times have power of access to and examination of any equip-
ment relating to such betting.
§ 69. Section 407 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 407. Licenses for quarter horse race meetings. 1. Any association or
corporation desiring to conduct quarter horse race meetings at which
pari-mutuel betting shall be permitted may apply annually to the [state
racing and wagering board] COMMISSION for a license so to do. If, in the
judgment of [such board] THE COMMISSION the public interest, convenience
or necessity will be served thereby and a proper case for the issuance
of such license is shown consistent with the purposes of sections two
hundred twenty-two through seven hundred five of this chapter and the
best interests of racing generally, [it] THE COMMISSION may grant such
license for a time ending not later than the thirty-first day of Decem-
ber next, specifying dates and hours during which and the place where
the licensee may operate.
2. Every such license shall be issued upon condition:
a. [That] THAT every quarter horse race meeting at which pari-mutuel
betting is conducted shall be subject to the supervision of and to the
reasonable rules and regulations from time to time prescribed by the
[state racing and wagering board] COMMISSION, and
b. [That] THAT pari-mutuel betting conducted thereunder shall also be
subject to the supervision of and to the reasonable regulations from
time to time prescribed by the [state tax commission] DEPARTMENT OF
TAXATION AND FINANCE. Any such license may also be issued upon any other
condition that the [state racing and wagering board] COMMISSION shall
determine to be necessary or desirable to insure that the public inter-
est, convenience or necessity is served.
S. 7639 65
3. Applications for licenses shall be in such form as may be
prescribed by the [board] COMMISSION and shall contain such information
or other material or evidence as the [board] COMMISSION may require.
Each application for renewal of a license shall be deemed to be an
application for a new license. The fee for such licenses shall be one
hundred dollars for each racing day payable in installments in advance
of each week's racing which sums shall be paid into the general fund of
the state treasury by the [board] COMMISSION. The term "racing week"
shall include those days as defined by the rules and regulations of the
[state racing and wagering board] COMMISSION.
4. In considering an application for a license under this section the
[state racing and wagering board] COMMISSION may give consideration to
the number of licenses already granted and to the location of the tracks
previously licensed. No such license shall be granted to any track
located within the corporate limits of a city of the first class. No
such license shall be granted to any quarter horse racetrack located
within fifty miles of any existing harness, thoroughbred or quarter
horse track except with the consent of the licensee located within such
[fifty mile] FIFTY-MILE area, provided, however, that in the counties of
Suffolk, Niagara and Albany such license shall be granted to any quarter
horse racetrack located more than thirty-five miles from any existing
harness, thoroughbred or quarter horse track, except with the consent of
the licensee located within such thirty-five mile area.
5. The [board] COMMISSION may refuse to grant a license to an associ-
ation or corporation if [it shall determine] THE COMMISSION DETERMINES
that:
a. any officer, director, member or stockholder of such association or
corporation applying for a license, or of any association or corporation
[which] THAT owns stock or shares in the profits or participates in the
management, of the affairs of such applicant, or [which] THAT leases to
such applicant the track where [it] SUCH APPLICANT shall operate HAS:
(i) [has] been convicted of a crime involving moral turpitude;
(ii) [has] engaged in bookmaking or other forms of illegal gambling;
(iii) [has] been found guilty of any fraud or misrepresentation in
connection with racing or breeding;
(iv) [has] been guilty of any violation or attempt to violate any law,
rule or regulation of any racing jurisdiction for which suspension from
racing might be imposed in such jurisdiction; OR
(v) [has] violated any rule, regulation or order of the [board]
COMMISSION; or
b. the experience, character or general fitness of any officer, direc-
tor or stockholder of any of the aforesaid associations or corporations
is such that the participation of such person in quarter horse racing or
related activities would be inconsistent with the public interest,
convenience or necessity or with the best interests of racing generally;
but if the [board] COMMISSION determines that the interest of any stock-
holder referred to in this paragraph or in paragraph a of this subdivi-
sion is insufficient in the opinion of the [board] COMMISSION to affect
adversely the conduct of pari-mutuel quarter horse racing by such asso-
ciation or corporation in accordance with the provisions of this arti-
cle, the [board] COMMISSION may disregard such interest in determining
whether or not to grant a license to such association or corporation; or
c. the applicant is not the owner of the track at which it will
conduct pari-mutuel quarter horse racing pursuant to the license applied
for, or that any person, firm, association or corporation other than the
applicant shares, or will share, in the profits of the applicant, other
S. 7639 66
than by dividends as a stockholder, or participates or will participate
in the management of the affairs of the applicant.
6. The [board] COMMISSION shall also have power to refuse to grant a
license:
a. to any association or corporation, the charter or certificate of
incorporation of which shall fail to contain a provision requiring any
stockholder, upon written demand of the association or corporation, to
sell his OR HER stock to the association or corporation at a price to be
fixed in the manner provided in article five of the business corporation
law, provided such demand be made pursuant to written direction of the
[board] COMMISSION; and from and after the date of the making of such
demand, prohibiting the transfer of such certificate of stock, except to
the association or corporation; or
b. to any association or corporation [which] THAT, having been a
licensee, has failed in the opinion of the [board] COMMISSION to proper-
ly maintain its track and plant in good condition or has failed to make
adequate provision for rehabilitation and capital improvements to its
track and plant.
7. Pending final determination of any question under this section, the
[board] COMMISSION may issue a temporary license upon such terms and
conditions as it may deem necessary, desirable or proper to effectuate
the provisions of sections two hundred twenty-two through seven hundred
five of this chapter.
8. Notwithstanding any other provision of this article, the [state
racing and wagering board] COMMISSION may grant a license to any author-
ized quarter horse racing association or corporation to hold and conduct
one additional quarter horse race meeting of not more than one racing
week's duration, with pari-mutuel betting, on any quarter mile track
within this state.
9. The [board] COMMISSION shall have power to direct that every
certificate of stock of any association or corporation licensed under
the provisions of sections two hundred twenty-two through seven hundred
five of this chapter shall bear a legend plainly and prominently
imprinted upon the face of the certificate reading: "This certificate of
stock is transferable only subject to the provisions of section four
hundred three of the racing, pari-mutuel wagering and breeding law".
§ 70. Section 408 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 408. Officials at quarter horse race meetings. At all quarter horse
race meetings licensed by the [state racing and wagering board] COMMIS-
SION in accordance with provisions of sections two hundred twenty-two
through seven hundred five of this chapter, qualified judges and start-
ers shall be designated by the [state racing and wagering board] COMMIS-
SION. Such officials shall enforce the rules and regulations of the
[state racing and wagering board] COMMISSION and shall render regular
written reports of the activities and conduct of such race meetings to
the [state racing and wagering board] COMMISSION.
§ 71. Section 409 of the racing, pari-mutuel wagering and breeding
law, subdivision 1 as amended by chapter 164 of the laws of 2003, is
amended to read as follows:
§ 409. Licenses for participants and employees at quarter horse race
meetings. 1. For the purpose of maintaining a proper control over quar-
ter horse race meetings conducted pursuant to sections two hundred twen-
ty-two through seven hundred five of this chapter, the [state racing and
wagering board] COMMISSION may license jockeys or riders and such other
persons participating in quarter horse race meets, as the [board]
S. 7639 67
COMMISSION may by rule prescribe, including, if the [board deem] COMMIS-
SION DEEMS it necessary [so] to do SO, owners, and some or all persons
exercising their occupation or employed at quarter horse race meets.
Each applicant for a license shall pay to the [board] COMMISSION an
annual license fee as follows: owner's license, if a renewal, fifty
dollars, and if an original application, one hundred dollars; trainer's
license, twenty dollars; assistant trainer's license, twenty dollars;
jockey's license, fifty dollars; jockey agent's license, twenty dollars;
farrier's license, twenty dollars; and stable employee's license, five
dollars. Such fees shall be paid to the [board] COMMISSION and by it
paid into the state treasury. The [board] COMMISSION may by rule fix the
license fees to be paid by other persons required to be licensed by the
rules of the [board] COMMISSION, not to exceed twenty dollars per cate-
gory. All such licenses, unless revoked for cause, shall be for the
period of no more than one, two or three years, as determined by rule of
the [board] COMMISSION, expiring on the applicant's birth date. Licenses
current on the effective date of this provision shall not be reduced in
duration by this provision. An applicant who applies for a license that,
if issued, would take effect less than six months prior to the appli-
cant's birth date may, by payment of a fifty percent higher fee, receive
a license [which] THAT shall not expire until the applicant's second
succeeding birth date. For each category of license, the applicant may
apply for a [two] TWO- or [three year] THREE-YEAR license by payment to
the [board] COMMISSION of the appropriate multiple of the annual fee.
The applications for licenses shall be in writing, accompanied by fing-
erprints and a photograph of the applicant, and shall be in such form,
and contain such other information, as the [board] COMMISSION may
require. Such fingerprints shall be submitted to the division of crimi-
nal justice services for a state criminal history record check, as
defined in subdivision one of section three thousand thirty-five of the
education law, and may be submitted to the federal bureau of investi-
gation for a national criminal history record check.
Every person employed by such association or corporation licensed to
conduct pari-mutuel quarter horse racing, including officers and direc-
tors thereof, whether or not such person be licensed, shall file finger-
prints and a photograph with the [board] COMMISSION within thirty days
after being so employed or taking such office. Every person employed
after January first, nineteen hundred seventy-one, by such association
or corporation, including officers and directors thereof, whether or not
such person be licensed, shall file fingerprints and a photograph with
the [board] COMMISSION within ten days after such employment or after
taking such office. The fingerprints so obtained from applicants for
licenses and from employees not to be licensed shall be forthwith trans-
mitted by the [board] COMMISSION to the division of criminal justice
services and may also be submitted to the federal bureau of investi-
gation or any other government agency having facilities for checking
fingerprints for the purpose of establishing the identity and the previ-
ous criminal record, if any, of such person and such agency shall
promptly report its findings to the [board] COMMISSION in writing.
2. If the [board shall find] COMMISSION FINDS that the experience,
character and general fitness of the applicant are such that the partic-
ipation of such person in quarter horse race meets will be consistent
with the public interest, convenience and necessity and with the best
interests of racing generally in conformity with the purposes of
sections two hundred twenty-two through seven hundred five of this chap-
ter, [it] THE COMMISSION may [thereupon] grant a license.
S. 7639 68
Without limiting the generality of the foregoing, the [board] COMMIS-
SION may refuse to issue a license, pursuant to this section, if [it
shall find] THE COMMISSION FINDS that the applicant HAS:
a. [Has] been convicted of a crime involving moral turpitude;
b. [Has] engaged in bookmaking or other form of illegal gambling;
c. [Has] been found guilty of any fraud or misrepresentation in
connection with racing or breeding;
d. [Has] been found guilty of any violation or attempt to violate any
law, rule or regulation of racing in any jurisdiction for which suspen-
sion from racing might be imposed in such jurisdiction; or
e. [Who has] violated any rule, regulation or order of the [board]
COMMISSION. The [board] COMMISSION may suspend or revoke a license
issued pursuant to this section if [it shall determine] THE COMMISSION
DETERMINES that (i) the applicant or licensee (1) has been convicted of
a crime involving moral turpitude; (2) has engaged in bookmaking or
other form of illegal gambling; (3) has been found guilty of any fraud
in connection with racing or breeding; (4) has been guilty of any
violation or attempt to violate any law, rule or regulation of any
racing jurisdiction for which suspension from racing might be imposed in
such jurisdiction; or (5) [who] has violated any rule, regulation or
order of the [board] COMMISSION, or (ii) [that] the experience, charac-
ter or general fitness of any applicant or licensee is such that the
participation of such person in quarter horse racing or related activ-
ities would be inconsistent with the public interest, convenience or
necessity or with the best interests of racing generally.
3. Pending final determination of any question under this section, the
[board] COMMISSION may issue a temporary license upon such terms and
conditions as [it] THE COMMISSION may deem necessary, desirable or prop-
er to effectuate the provisions of sections two hundred twenty-two
through seven hundred five of this chapter.
§ 72. Section 410 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 240 of the laws of 2010, is amended to read
as follows:
§ 410. Power of [state racing and wagering board] COMMISSION to impose
fines and penalties. [In] THE COMMISSION, IN addition to its powers to
suspend or revoke licenses granted by it, [the state racing and wagering
board] is hereby authorized and empowered to impose monetary fines upon
any corporation, association or person participating in any way in any
quarter horse race meet at which pari-mutuel betting is conducted, other
than as a patron, and whether licensed by the [board] COMMISSION or not,
for a violation of any provision of this chapter or the rules promulgat-
ed by the [board] COMMISSION pursuant thereto, not exceeding [twenty-
five thousand dollars for each violation] THE AMOUNTS SET FORTH IN
SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER. The [board] COMMISSION is
further authorized and empowered to impose monetary fines, not exceeding
[twenty-five thousand dollars for each violation] THE AMOUNTS SET FORTH
IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER, upon any such corpo-
ration, association or person for a violation of any order issued by the
[board] COMMISSION pursuant to the provisions of this chapter or the
rules promulgated by the [board] COMMISSION pursuant thereto, provided
that a copy of such order shall have been served, either personally or
by registered mail, upon the corporation, association or person to whom
the same was directed, prior to the occurrence of the violation for
which such fine is imposed. Such fines shall be paid into the treasury
of the state. The action of the [board] COMMISSION in imposing any mone-
tary fine shall be reviewable in the supreme court in the manner
S. 7639 69
provided by and subject to the provisions of article seventy-eight of
the civil practice law and rules.
§ 73. Section 411 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 411. Refunds. Moneys received by the [board] COMMISSION pursuant to
this article may within one year from the receipt thereof be refunded to
the party for whose account the same were received on proof satisfactory
to the [board] COMMISSION that:
1. [Such] SUCH moneys were in excess of the amount required by law[.];
2. [The] THE license for which application was made has been refused
by the [board.] COMMISSION;
3. [Such] SUCH moneys were received as a fine and the [board] COMMIS-
SION has after review reduced the amount of such fine[.]; OR
4. [Upon appeal, the court] UPON JUDICIAL REVIEW, A COURT OF COMPETENT
JURISDICTION reduced or remitted the fine imposed.
Such refunds shall, upon approval by the [board] COMMISSION and after
audit by the comptroller, be paid from any moneys in the custody of the
department OF TAXATION AND FINANCE received pursuant to this article.
§ 74. Subdivision 2 of section 412 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 476 of the laws of 2018, is
amended to read as follows:
2. Any appointment of a special police officer under this section,
shall [only] be made ONLY with the approval of the [state racing and
wagering board] COMMISSION. Application for such approval shall be in
such form as may be prescribed by the [board] COMMISSION and shall
contain such other information or material or evidence as the [board]
COMMISSION shall require. In acting on an application for such approval
the [board] COMMISSION shall consider the background, experience, integ-
rity, and competence of the candidate for appointment, the public inter-
est, convenience or necessity and the interests of quarter horse racing
generally. The [board] COMMISSION in its discretion may set the term of
any such appointment, terminate any existing appointment at any time and
prescribe conditions and rules for the conduct of such office.
§ 75. Section 413 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 413. Place and manner of conducting pari-mutuel betting. Any corpo-
ration or association licensed to conduct pari-mutuel betting at a quar-
ter horse race meeting shall provide a place or places within race meet-
ing grounds or enclosure at which such licensee shall conduct the
pari-mutuel system of betting by its patrons on the result of the quar-
ter horse races at such meetings. Such licensee shall cause to be
erected a sign or board upon which shall be displayed the approximate
straight odds on each horse in any race; the total amount wagered upon
each horse in each pool; the value of a [two dollar] TWO-DOLLAR winning
mutuel ticket, straight, place or show on the first three horses in any
race; the elapsed time of the race; the value of a [two dollar] TWO-DOL-
LAR winning daily double ticket, if a daily double [be] IS conducted,
and any other information that the [state racing and wagering board]
COMMISSION may deem necessary for the guidance of the general public.
All machines and equipment used for pari-mutuel betting or for the
display of the foregoing information must be approved by the [state
racing and wagering board] COMMISSION and the [state tax commission]
DEPARTMENT OF TAXATION AND FINANCE before being used, but neither the
[board] COMMISSION nor the [commission] DEPARTMENT OF TAXATION AND
FINANCE shall require the installation of any particular make of mechan-
ical or electrical equipment.
S. 7639 70
§ 76. Section 415 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 415. Bond required of corporation or association conducting pari-mu-
tuel betting. Every corporation or association licensed by the [state
racing and wagering board] COMMISSION to conduct quarter horse race
meetings at which pari-mutuel betting shall be permitted, annually and
before the opening of any race meeting shall execute and file with the
state comptroller a bond to this state in a penalty to be fixed by the
[state tax commission] DEPARTMENT OF TAXATION AND FINANCE not exceeding
two hundred fifty thousand dollars, with sureties approved by the attor-
ney general, that it will keep its books and records and make reports as
required by sections two hundred twenty-two through seven hundred five
of this chapter, that it will pay to the state all taxes imposed by
sections two hundred twenty-two through seven hundred five of this chap-
ter, that it will distribute to the patrons of pari-mutuel pools
conducted by it all sums due upon presentation of winning tickets held
by them, and that it will otherwise comply with all of the provisions of
sections two hundred twenty-two through seven hundred five of this chap-
ter and with the rules and regulations prescribed by the [state racing
and wagering board] COMMISSION and the [state tax commission] DEPARTMENT
OF TAXATION AND FINANCE.
§ 77. Section 417 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 417. Filing of certain agreements with [state racing and wagering
board] COMMISSION. Every association or corporation licensed to conduct
quarter horse race meetings at which pari-mutuel betting is permitted
shall promptly after entering into any lease, agreement concerning any
concession, labor management relations, the hiring of designated classes
of officers, employees or contractors specified by the [board] COMMIS-
SION or any such other contract, agreement or arrangement as the [board]
COMMISSION may from time to time prescribe file with the [board] COMMIS-
SION a true and correct copy, or an accurate summary, if oral, thereof.
§ 78. Section 418 of the racing, pari-mutuel wagering and breeding
law, subdivision 4 as added by chapter 286 and paragraph a of subdivi-
sion 4 as amended by chapter 287 of the laws of 1985, is amended to read
as follows:
§ 418. Disposition of pari-mutuel pools. 1. Every association or
corporation authorized under sections two hundred twenty-two through
seven hundred five of this chapter to conduct pari-mutuel betting at a
quarter horse race meeting on races run thereat shall distribute all
sums deposited in any pari-mutuel pool to the holders of winning tickets
therein provided such tickets be presented for payment before April
first of the year following the year of their purchase, less seventeen
[per centum] PERCENT of the total deposits in pools resulting from regu-
lar on-track bets and less nineteen [per centum] PERCENT of the total
deposits in pools resulting from multiple bets and less twenty-five [per
centum] PERCENT of the total deposits in pools resulting from exotic
on-track bets, plus the breaks. "Multiple bet" or "multiple wager" shall
mean a single bet or wager on two horses, evidenced by a single ticket
and representing an interest in a single betting pool. "Exotic bet" or
"exotic wager" shall mean a single bet or wager on three or more horses,
evidenced by a single ticket and representing an interest in a single
betting pool. The breaks for regular bets and multiple bets are hereby
defined as the odd cents over any multiple of ten or for exotic bets,
over any multiple of fifty calculated on the basis of one dollar and
otherwise payable to a patron. Of the sum so retained the applicable tax
S. 7639 71
rates for regular bets shall be three [per centum] PERCENT; the applica-
ble tax rates for multiple bets shall be three and one-half [per centum]
PERCENT; the applicable tax rates for exotic bets shall be eight [per
centum] PERCENT, plus sixty-five [per centum] PERCENT of the amount of
the breaks from on-track regular, multiple and exotic bets shall be paid
by such corporation or association to the [state tax commission] DEPART-
MENT OF TAXATION AND FINANCE as a reasonable tax by the state for the
privilege of conducting pari-mutuel betting on the races run at the
quarter horse race meetings held by such corporation or association,
which tax is hereby levied, and the balance of the retained percentage
of such pool and of the breaks may be held by such corporation or asso-
ciation for its own use and purposes. The payment of such state tax
shall be made to the [state tax commission] DEPARTMENT OF TAXATION AND
FINANCE at such regular intervals as the [said tax commission] DEPART-
MENT OF TAXATION AND FINANCE may require, and shall be accompanied by a
report under oath showing the total of all such contributions together
with such other information as the [said tax commission] DEPARTMENT OF
TAXATION AND FINANCE may require. A penalty of five [per centum] PERCENT
and interest at the rate of one [per centum] PERCENT per month from the
date the report is required to be filed to the date of payment of the
tax shall be payable in case any tax imposed by this section is not paid
when due. If the [state tax commission] DEPARTMENT OF TAXATION AND
FINANCE determines that any moneys received under this section were paid
in error, it may cause the same to be refunded without interest out of
any moneys collected thereunder, provided an application therefor is
filed with it within one year from the time the erroneous payment was
made. Such taxes, interest and penalties when collected, after the
deduction of refunds of taxes erroneously paid, shall be paid by the
[state tax commission] DEPARTMENT OF TAXATION AND FINANCE into the
general fund of the state treasury. Ten [per centum] PERCENT of the
breaks shall be paid to the New York state quarter horse breeding and
development fund.
2. Except as may be authorized by the legislature, no county, city,
town, village or other political subdivision of the state may impose,
levy or collect a tax on admission fees or tax on admission, on wagers
made by patrons in the form of purchases of pari-mutuel tickets or upon
such tickets, on pari-mutuel pools, on breaks, on dividends or payments
made to winning bettors, or on that part of the pari-mutuel pools or
breaks to be retained by quarter horse racing corporations or associ-
ations under this section.
3. The sums paid by any corporation or association to the [state tax
commission] DEPARTMENT OF TAXATION AND FINANCE shall be determined by
multiplying each applicable rate for total daily pools from on-track
regular bets by the percentage [which] THAT on-track regular bets is of
the total on-track daily pool and by multiplying each applicable rate
for total daily pools on on-track exotic bets by the percentage [which]
THAT exotic bets is of total daily pool, then combining the two deter-
mined percentages and applying the result to the appropriate level of
the total daily pool from on-track regular and exotic bets.
[4. Notwithstanding the provisions of subdivision one of this section,
prior to April first, nineteen hundred eighty-nine, the applicable tax
rates shall be as follows:
a. From April first, nineteen hundred eighty-six through March thir-
ty-first, nineteen hundred eighty-seven, of the sum retained the appli-
cable tax rates for regular bets shall be three-quarters of one per
centum; the applicable rates for multiple, exotic bets shall be seven-
S. 7639 72
eighths of one per centum; plus sixteen and one-quarter per centum of
the breaks from all bets.
b. After April first, nineteen hundred eighty-seven of the sum
retained the applicable tax rates for all bets shall be one per centum
of all wagers, plus twenty per centum of the breaks.]
§ 79. Section 419 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 419. Revocation of license. The [state racing and wagering board]
COMMISSION may revoke or suspend a license for the conduct of quarter
horse race meetings at which pari-mutuel betting is conducted[.]:
1. [For] FOR any cause [which] THAT would permit or require [its
refusal] THE COMMISSION TO REFUSE to issue a license, or
2. [If it shall determine] IF THE COMMISSION DETERMINES that[:] the
corporation or association to which such license [shall have] HAS been
issued, or its officers or directors, [fail] FAILS to conduct racing at
its track, including pari-mutuel betting on the races [thereat] AT SUCH
TRACK, in accordance with the terms and conditions of such license, the
rules of [such board] THE COMMISSION or of the [state tax commission]
DEPARTMENT OF TAXATION AND FINANCE, or the provisions of sections two
hundred twenty-two through seven hundred five of this chapter, or if
such corporation or association or its officers or directors shall know-
ingly permit on its grounds or within the enclosure of its racetrack,
lotteries, pool-selling or bookmaking, or any other kind of gambling, in
violation of sections two hundred twenty-two through seven hundred five
of this chapter or of the penal law.
§ 80. Section 420 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 420. Hearing of refusal or revocation of license. If the [state
racing and wagering board shall refuse] COMMISSION REFUSES to grant a
license applied for under sections two hundred twenty-two through seven
hundred five of this chapter, or [shall revoke] REVOKES or [suspend]
SUSPENDS such license granted by it, or [shall impose] IMPOSES a mone-
tary fine upon a participant in quarter horse racing, THEN the applicant
or licensee or party fined may demand, within ten days after notice of
[the said] SUCH act of the [board] COMMISSION, a hearing before the
[board] COMMISSION and the [board] COMMISSION shall give prompt notice
of a time and place for such hearing at which the [board] COMMISSION
will hear such applicant or licensee or party fined in reference there-
to. Pending such hearing and final determination [thereon] OF SUCH
MATTER, the action of the [board] COMMISSION in refusing to grant or in
revoking or suspending a license or in imposing a monetary fine shall
remain in full force and effect. The [board] COMMISSION may continue
such hearing from time to time, for the convenience of any of the
parties. Any of the parties affected by such hearing may be represented
by counsel, and the [board] COMMISSION may be represented by the attor-
ney general, a deputy attorney general or its counsel. In the conduct of
such hearing the [board] COMMISSION shall not be bound by technical
rules of evidence, but all evidence offered before the [board] COMMIS-
SION shall be reduced to writing, and such evidence together with the
exhibits, if any, and the findings of the [board] COMMISSION, shall be
permanently preserved and shall constitute the record of the [board]
COMMISSION in such case. In connection with such hearing, each member of
the [board] COMMISSION shall have the power to administer oaths and
examine witnesses, and may issue subpoenas to compel attendance of
witnesses, and the production of all material and relevant reports,
books, papers, documents, correspondence and other evidence. The [board]
S. 7639 73
COMMISSION may, if occasion shall require, by order, refer to one or
more of its members or officers, the duty of taking testimony in such
matter, and to report thereon to the [board] COMMISSION, but no determi-
nation shall be made therein except by the [board] COMMISSION. Within
thirty days after the conclusion of such hearing, the [board] COMMISSION
shall make a final order in writing, setting forth the reasons for the
action taken by it and a copy thereof shall be served on such applicant
or licensee or party fined, as the case may be. The action of the
[board] COMMISSION in refusing to grant a license or in revoking or
suspending a license or in imposing a monetary fine shall be reviewable
in the supreme court in the manner provided by and subject to the
provisions of article seventy-eight of the civil practice law and rules.
§ 81. Section 421 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 421. Approval of plans of corporation or association. The [state
racing and wagering board] COMMISSION shall not grant to a corporation
or association hereafter formed pursuant to sections two hundred twen-
ty-two through seven hundred five of this chapter, a license to conduct
a quarter horse race meeting at which pari-mutuel betting may be
conducted within the state until such corporation or association shall
have submitted to the [board] COMMISSION a statement of the location of
its proposed grounds and racetrack, together with a plan of such race-
track, and plans of all buildings, seating stands and other structures
in such form as the [board] COMMISSION may prescribe, and such plans
shall have been approved in writing by the [board] COMMISSION. Alter-
ations of existing buildings, seating stands and other structures, and
the erection of new or additional buildings, seating stands or other
structures may be made only with the written approval of the [board]
COMMISSION and after examination and inspection of the plans thereof and
the issuance of a permit therefor by the [state racing and wagering
board] COMMISSION. The [board] COMMISSION at the expense of the appli-
cant may order such engineering examination thereof as the [board]
COMMISSION may deem necessary. The approval of the certificate of incor-
poration of such corporation or association shall not be deemed to vest
in it the right to a license to conduct quarter horse race meetings at
such race course or racetrack unless such grounds, track, buildings,
seating stands and other structures shall be completed in accordance
with the plans approved by the [board] COMMISSION.
§ 82. Section 422 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 370 of the laws of 2011, is amended to read
as follows:
§ 422. Free or reduced fee passes, cards or badges. A corporation or
association licensed to conduct pari-mutuel betting on quarter horse
races run at its racetrack may issue free passes, cards or badges to any
qualified person. A qualified person shall include, but need not be
limited to, officers and employees of the corporation or association
conducting the race meeting, members, officers, and employees of the
[state racing and wagering board] COMMISSION, members of quarter horse
racing associations of other states and foreign countries, public offi-
cers engaged in the performance of their duties, persons actually
employed and accredited by the press to attend such meetings, owners,
stable managers, trainers, jockeys, concessionaires, spouses, domestic
partners and children of owners, trainers and jockeys, other persons
whose actual duties require their presence at such racetrack, and any
other person or guest deemed appropriate by such corporation or associ-
ation. In addition, free or reduced fee passes, cards or badges may be
S. 7639 74
issued to the general public or segments of the general public in
connection with any promotional campaign or marketing program sponsored
by such corporation or association to increase attendance at live race
meets. The issuance of free passes, cards or badges shall be under the
rules and regulations of the [state racing and wagering board] COMMIS-
SION.
§ 83. Section 428 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 428. Construction. Notwithstanding the provisions of any general,
special, or local law or ordinance, the provisions of sections two
hundred twenty-two through seven hundred five of this chapter and the
rules and regulations and requirements of the [state racing and wagering
board] COMMISSION relating to the time when and place where or manner in
which the quarter horse races shall be conducted in this state and the
control of the grounds and structures erected or to be erected thereon
upon and at which such racing is conducted and the activities conducted
thereat and thereon in connection with any trial or contest of speed or
power of endurance of quarter horses shall be construed and deemed to be
exclusive of and shall supersede any provisions of such other general,
special or local law or ordinance in any wise relating thereto, nor
shall the provisions of article two hundred twenty-five of the penal law
be deemed to apply to pari-mutuel betting conducted pursuant to sections
two hundred twenty-two through seven hundred five of this chapter.
§ 84. Subdivisions 3 and 7 of section 430 of the racing, pari-mutuel
wagering and breeding law are amended to read as follows:
3. "New York-bred." A quarter horse foaled in New York state and
registered in the registry administered by quarter horse breeding asso-
ciations in this state designated by the [state racing and wagering
board] COMMISSION.
7. "Races." Races upon which pari-mutuel wagering is conducted at
quarter horse race meetings of racing associations or corporations as
authorized by the [state racing and wagering board] COMMISSION.
§ 85. Subdivisions 1 and 3 of section 431 of the racing, pari-mutuel
wagering and breeding law, subdivision 1 as amended by chapter 197 of
the laws of 2007, subdivision 3 as amended by section 8 of part A of
chapter 60 of the laws of 2012, is amended to read as follows:
1. A corporation to be known as the "New York state quarter horse
breeding and development fund corporation" is hereby created. Such
corporation shall be a body corporate and politic constituting a public
benefit corporation, the objective of which shall be to encourage the
breeding of quarter horses and the development of the quarter horse
industry in this state. It shall be administered by a board of directors
consisting of the [chairman] CHAIR of the [state racing and wagering
board] COMMISSION or his or her designee, who shall be [chairman] CHAIR
of the board of directors of the corporation, the commissioner of agri-
culture and markets, and the members of the [state racing and wagering
board] COMMISSION.
3. The [board] COMMISSION may delegate to one or more of the directors
or officers of the fund such powers and duties as it may deem proper and
shall [utilize] USE, pursuant to a contract approved by the director of
the budget, the service employees of the [state gaming] commission and
the state office of racing promotion and development.
§ 86. Paragraph e of subdivision 2 of section 433 of the racing, pari-
mutuel wagering and breeding law is amended to read as follows:
e. Five percent or such lower proportion as the [state racing and
wagering board] COMMISSION may prescribe based upon the operational
S. 7639 75
experience and objectives of the fund, for the administration and
management of the fund. If the [board] COMMISSION shall reduce the
proportion of the fund's resources applicable to administration, the
proportions otherwise applicable shall be increased accordingly. All
moneys of the fund in excess of twenty-five thousand dollars on hand at
the end of each calendar year shall be remitted to and vest in the
state.
§ 87. Section 501 of the racing, pari-mutuel wagering and breeding
law, is amended to read as follows:
§ 501. Definitions. As used in this article, IN ADDITION TO THE DEFI-
NITIONS SET FORTH IN SECTION ONE HUNDRED ONE OF THIS CHAPTER, the
following terms shall mean and include:
1. ["State board." The state racing and wagering board.
2.] "Board of directors." The board of directors of a corporation as
such board is constituted pursuant to section five hundred two of this
article.
[3] 2. "Corporation." Each regional off-track betting corporation, as
created by section five hundred two of this article.
[4] 3. "Participating county." Any of the counties in a region which
have elected to join a corporation in the manner provided for in section
five hundred two of this article.
[5] 4. "Bonds and notes." Bonds and notes, respectively, authorized
and issued by the corporation pursuant to this article.
[6] 5. "Cost of corporation's functions." All costs and expenses
incurred by the corporation in connection with carrying out the func-
tions as described by this article, including, but not limited to, oper-
ating expenses of the corporation, the costs of acquisition,
construction or equipment of branch offices and other facilities of the
corporation, and interest and principal on bonds, notes or other obli-
gations of the corporation issued to finance the acquisition,
construction or equipment of such offices, facilities or premises.
[7] 6. "Region." The several regions defined by subdivision one of
section five hundred nineteen of this chapter.
[8] 7. "Track." The grounds or enclosure within which horse races are
conducted by any person, association or corporation lawfully authorized
to conduct such races.
[9] 8. "Governing body." The appropriate county legislative body.
[10] 9. "Branch office." An establishment maintained and operated by
the corporation, where off-track, pari-mutuel betting on horse races may
be placed in accordance with the terms and conditions of this article
and the rules and regulations issued pursuant thereto.
[11] 10. "Enabling legislation." A local law, ordinance or resolution
subject to a permissive referendum pursuant to the municipal home rule
law.
§ 88. Subdivisions 2, 3 and 4, paragraph a of subdivision 5 and subdi-
vision 7 and 16 of section 502 of the racing, pari-mutuel wagering and
breeding law, subdivision 4 as amended by chapter 346 of the laws of
1990, and subdivision 16 as added by chapter 908 of the laws of 1990,
are amended to read as follows:
2. A city with a population of [over] MORE THAN one hundred fifty
thousand, according to the last federal census, may elect to participate
in the management and revenues of a regional corporation if the county
in which such city is located has elected to become a participating
county. Such election shall be by enabling legislation. Upon such
election, such city shall participate in the amount of any loans or
contributions made or to be made by the participating county containing
S. 7639 76
the city to the corporation, pursuant to section five hundred six of
this article, in the proportion that such city will participate in net
revenues payable to such county or such other equitable arrangement as
shall be approved by the [board] COMMISSION.
3. Upon the passage of enabling legislation by the governing body of
not less than three counties within a region representing not less than
thirty percent of the population of such region, as determined by the
last federal census, or in the case of the Suffolk region, upon the
passage of enabling legislation by the governing body of Suffolk county,
or in the case of the Nassau region, upon the passage of enabling legis-
lation by the governing body of Nassau county, or in the case of the
Mid-Hudson region upon the passage of enabling legislation by the
governing body of the county of Westchester and of the governing body of
one other county in such region, and following the appointment of
members of the board of directors, such corporation shall file with the
secretary of state and with the [state racing and wagering board]
COMMISSION a certificate setting forth:
a. The date of passage of the enabling legislation;
b. The name of the agency, which shall be the name of the region
followed by the words "regional off-track betting corporation"; and
c. The names of the members of the board of directors and the [chair-
man] CHAIR.
4. Each of the counties of the region that [have] HAS not become A
participating [counties] COUNTY at the time of filing of the certificate
required by subdivision three of this section may do so by enacting
enabling legislation, a duly certified copy of which must be filed with
the board of directors, the [state board] COMMISSION, the secretary of
state and the county clerk of each participating county. In the event
that a county elects to participate after June first, nineteen hundred
ninety, the effective date of approval by the [state board] COMMISSION
shall not be earlier than the date that branch offices are established
and operating. If, at the time of such election, the [state board]
COMMISSION has approved a plan of operation for the corporation, a coun-
ty may not become a participating county without approval by the [state
board] COMMISSION of a modified feasibility study and amended plan of
operation which shall be submitted by the corporation to the [state
board] COMMISSION pursuant to section five hundred twenty-one of this
chapter.
If the participating counties in the region have contributed or loaned
funds or other consideration to the corporation, the board of directors
may require that any county subsequently electing to become a partic-
ipating county make such contributions in the same proportion, if any,
as may have governed such contributions or loans by participating coun-
ties. Any dispute as to the value of consideration or as to a contrib-
ution required by the board of directors shall be resolved by the [state
board] COMMISSION.
a. If the certificate required by subdivision three of this section is
not filed by December thirty-first, nineteen hundred seventy-five, the
corporate existence of a corporation shall terminate, but otherwise,
each corporation and its corporate existence shall continue until termi-
nated by law; provided, however, that no such law shall take effect so
long as the corporation shall have bonds, notes or other obligations
outstanding. Upon termination of the existence of the corporation all of
its rights, property, assets and funds shall thereupon vest in and be
possessed by the participating counties in the same proportion such
property, assets and funds may have been contributed by each county or
S. 7639 77
according to the manner in which the revenues of the corporation are
distributed pursuant to section five hundred sixteen of this article, or
any combination of both such methods, as the [state board] COMMISSION
shall determine.
7. The directors shall be removable for cause by the [state board]
COMMISSION, upon charges and after a hearing.
16. Notwithstanding any inconsistent provision of this chapter or any
other law, any director, administrator, or other employee of a corpo-
ration may be issued and hold any license issued by the [state board]
COMMISSION.
§ 89. The opening paragraph, subdivisions 4 and 10 and paragraph c of
subdivision 11 of section 503 of the racing, pari-mutuel wagering and
breeding law, subdivision 10 as amended by chapter 116 of the laws of
2001, are amended to read as follows:
Subject to the general and specific limitations of sections two
hundred twenty-two through seven hundred five of this chapter and the
authority of the [state board] COMMISSION pursuant to articles one and
five-a of this chapter, each corporation shall have power:
4. To acquire, in the name of the corporation, by purchase, condemna-
tion, gift, grant or devise or otherwise, and to use, real property
[which] THAT is necessary or convenient for carrying out its corporate
purposes; provided that the corporation shall not condemn any real prop-
erty without first having obtained the consent of the chief elected
official in the jurisdiction in which such real property is located. All
real property acquired by the corporation by condemnation shall be
acquired in the manner provided by law for the condemnation of real
property in the jurisdiction in which the real property is located;
10. In the manner and subject to the provisions of sections two
hundred twenty-two through seven hundred five of this chapter, and
subject to the rules and regulations of the [state board] COMMISSION, to
establish and conduct within the region a system of off-track pari-mutu-
el betting on horse races, and, if licensed to do so under article three
of this chapter, conduct harness race meetings;
c. Any violation of any rule or regulation, filed with the county
clerk of each county in which such corporation operates and designated
by the letter "R" by resolution of the board of directors of the corpo-
ration, shall be a violation and shall be punishable by imprisonment for
not more than three months, or by a fine of not more than one thousand
dollars, or by both such imprisonment and fine. All such fines collected
shall be payable to the county comptroller in the county in which the
violation occurred and shall be paid by [him] SUCH COUNTY COMPTROLLER
into the general fund of such county. Any such rule shall be effective,
notwithstanding that any act or omission made an offense or punishable
thereby may be a crime or violation or punishable under any other
provision of law;
§ 90. Subdivision 1 of section 503-a of the racing, pari-mutuel wager-
ing and breeding law, as added by section 2 of part II of chapter 58 of
the laws of 2012, is amended to read as follows:
1. In addition to the powers enumerated in section five hundred three
of this article, financially insolvent regional off-track betting corpo-
rations, as determined by the [racing and wagering board] COMMISSION
upon review of certified financial statements, are hereby authorized and
may file any petition with any United States district court or court of
bankruptcy under any provision of laws of the United States for the
composition or adjustment of municipal indebtedness, provided such
corporation is authorized by a resolution adopted by a majority of the
S. 7639 78
participating counties to such region, or, for a corporation wholly
contained within one county, by a resolution adopted by such county. The
provisions of this subdivision shall not apply to the Suffolk regional
off-track betting corporation until April first, two thousand fourteen.
§ 91. Subdivision 2 of section 504 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 476 of the laws of 2018, is
amended to read as follows:
2. Any appointment of a special police officer under this section,
shall [only] be made ONLY with the approval of the [state racing and
wagering board] COMMISSION. Application for such approval shall be in
such form as may be prescribed by the [board] COMMISSION and shall
contain such other information or material or evidence as [it shall
require] THE COMMISSION REQUIRES. In acting on an application for such
approval the [board] COMMISSION shall consider the background, experi-
ence, integrity, and competence of the candidate for appointment, the
public interest, convenience or necessity and the interests of legalized
wagering generally. The [board] COMMISSION in its discretion may set the
term of any such appointment, terminate any existing appointment at any
time and prescribe conditions and rules for the conduct of such office.
§ 92. Paragraph j of subdivision 4 of section 508 of the racing, pari-
mutuel wagering and breeding law is amended to read as follows:
j. Any other matters of like or different character[, which] THAT in
any way affect the security or protection of the holders of the bonds or
notes.
§ 93. Paragraph c of subdivision 1 of section 509 of the racing, pari-
mutuel wagering and breeding law is amended to read as follows:
c. Any other moneys [which] THAT may be made available to the corpo-
ration for the purpose of such capital reserve fund from any other
source or sources. All moneys held in the capital reserve fund, except
as hereinafter provided, shall be used solely for the payment of the
principal of bonds of the corporation, the payment of interest on such
bonds, or the payment of any redemption premium required to be paid when
such bonds are redeemed prior to maturity; provided, however, that
moneys in such capital reserve fund shall not be withdrawn therefrom at
any time in such amount as would reduce the amount of such fund to less
than the maximum amount of principal and interest maturing and becoming
due in any succeeding fiscal year of the corporation on all bonds of the
corporation then outstanding, except for the purpose of paying principal
of and interest on such bonds of the corporation maturing and becoming
due and for the payment of which other moneys of the corporation are not
available. Any income or interest earned by, or increment to, the capi-
tal reserve fund due to the investment thereof may be transferred to
other funds or accounts to the extent it does not reduce the amount of
the capital reserve fund below the maximum amount of principal and
interest maturing and becoming due in any such succeeding fiscal year on
all bonds of the corporation then outstanding.
§ 94. Subdivisions 1 and 2 of section 512 of the racing, pari-mutuel
wagering and breeding law are amended to read as follows:
1. In the event that a corporation [shall default] DEFAULTS in the
payment of the principal of or interest on any issue of bonds or notes
after the same [shall become] BECOMES due, whether at maturity or upon
call for redemption, and such default [shall continue] CONTINUES for a
period of thirty days, or in the provisions of this article, or [shall
default] DEFAULTS in any agreement made with the holders of any issue of
the bonds or notes, the holders of twenty-five [per centum] PERCENT in
aggregate principal amount of the bonds or notes of such issue then
S. 7639 79
outstanding, by instrument or instruments filed in the office of the
clerk of any county in which the corporation operates and approved or
acknowledged in the same manner as a deed to be recorded, may appoint a
trustee to represent the holders of such bonds or notes for the purposes
herein provided.
2. Such trustee may, and upon written request of the holders of twen-
ty-five [per centum] PERCENT in principal amount of such bonds or notes
then outstanding shall, in his, HER or its own name:
a. [By] BY suit, action or special proceedings enforce all rights of
the holders of the bonds or notes, including the right to require the
corporation to carry out any agreements with such holders and to perform
its duties under this title;
b. [Bring] BRING suit upon such bonds or notes;
c. [By] BY action or suit, require the corporation to account as if it
were the trustee of an express trust for the holders of such bonds or
notes;
d. [By] BY action or suit, enjoin any acts or things [which] THAT may
be unlawful or in violation of the rights of the holders of such bonds
or notes; AND
e. [Declare] DECLARE all such bonds or notes due and payable, and if
all defaults shall be made good, then, with the consent of the holders
of twenty-five [per centum] PERCENT of the principal amount of such
bonds or notes then outstanding, annul such declaration and its conse-
quences.
§ 95. Paragraph a of subdivision 2 of section 514 of the racing, pari-
mutuel wagering and breeding law is amended to read as follows:
a. The name and post office address of each claimant, and of his OR
HER attorney if any;
§ 96. Section 517 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 517. Annual reports. In addition to the reports required by article
five-a of this chapter, within one hundred twenty days after the end of
the fiscal year of the corporation, the directors thereof shall submit
to the participating counties, the [state board] COMMISSION, and the
state comptroller a complete and detailed audited report setting forth:
1. [Its] ITS operations and accomplishments during such fiscal year;
2. [Its] ITS receipts and expenditures during such fiscal year in
accordance with categories or classifications established by the corpo-
ration for its own operating and capital outlay purposes;
3. [Its] ITS assets and liabilities at the end of such fiscal year
including a schedule of its bonds, notes or other obligations and the
status of reserves, depreciations, special, sinking or other funds;
4. [Details] DETAILS of branch offices being planned or in the process
of being constructed or otherwise established and branch offices that
have been constructed or established; AND
5. [Such] SUCH other information relating to the operations of the
corporation as shall be deemed pertinent by the directors, the partic-
ipating counties, the [state board] COMMISSION, and the state comp-
troller.
§ 97. Section 518 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 518. Off-track pari-mutuel betting; objectives. In the exercise of
the power vested in it by subdivision one of section nine of article one
of the state constitution, the legislature hereby prescribes that off-
track pari-mutuel betting on horse races, conducted under the adminis-
tration of the [state racing and wagering board] COMMISSION in the
S. 7639 80
manner and subject to the conditions provided for in this article, shall
be lawful, notwithstanding the provisions of any other law, general,
special or local, including any law prohibiting or restricting
lotteries, pool-selling or bookmaking or any other kind of gambling; it
being the purpose of this article to derive from such betting, as
authorized by this article, a reasonable revenue for the support of
government, and to prevent and curb unlawful bookmaking and illegal
wagering on horse races. It is also the intention of this article to
ensure that off-track betting is conducted in a manner compatible with
the well-being of the horse racing and breeding industries in this
state, which industries are and should continue to be major sources of
revenue to state and local government and sources of employment for
thousands of state residents.
§ 98. Section 520 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
§ 520. General jurisdiction. 1. The [state racing and wagering board]
COMMISSION shall have general jurisdiction over the operation of all
off-track betting facilities within the state[, and the board]. THE
COMMISSION shall issue rules and regulations in accordance with the
provisions of this article in order to ensure the accomplishment of the
purposes set out in section five hundred eighteen of this article.
2. The [board] COMMISSION shall own or lease all communication and
transmission facilities [utilized] USED to transmit wagering information
between regions, as provided by and subject to the exceptions in section
five hundred twenty-five of this article and may establish a data proc-
essing center, within the amounts appropriated therefor, and provide
data processing services to regional corporations, on a transaction fee
basis.
3. Without limiting the generality of the foregoing, the [board]
COMMISSION shall establish such general regulations to limit the access
to off-track betting establishments of persons not permitted to bet
therein, the availability or [utilization] USE of publications, written
materials or communications equipment therein as the [board] COMMISSION
determines to be in the interest of public order and the furtherance of
the objectives of this article and shall prohibit the sale of food and
beverages in all facilities where bets may be placed. The [board]
COMMISSION shall also provide for the methods for the results of races
to be communicated to regional corporations and disseminated thereby.
§ 99. Section 521 of the racing, pari-mutuel wagering and breeding
law, the opening paragraph as amended by chapter 18 of the laws of 2008,
and subdivision 8 as amended by chapter 306 of the laws of 1984, is
amended to read as follows:
§ 521. Approval of plans of operation; amendments. In order to accom-
plish the objectives of this article, the [board] COMMISSION shall have
the power, subject to the provisions of this article but without limit-
ing the generality of any provision of this chapter, to approve a plan
of operation submitted by any regional corporation created under article
five of this chapter.
1. Before [it] THE COMMISSION may grant such approval, the [board]
COMMISSION must review and approve a feasibility study submitted by such
corporation, including but not limited to the following subjects:
a. [The] THE overall practicability of establishing and operating an
efficient and profitable system of off-track betting in such region or
in such counties that have elected to participate in the corporation;
b. [The] THE potential market;
c. [The] THE estimated costs of operation;
S. 7639 81
d. [The] THE probable types of wagering and number of opportunities
required for successful operation; AND
e. [The] THE probable impact of the proposed operation upon on-track
attendance and pari-mutuel betting within the region. The [board]
COMMISSION may, within the time provided for approval, request addi-
tional information from the corporation. Disapproval of the feasibility
study shall be accompanied by a statement of the reasons therefor and
shall be treated as disapproval of a plan under subdivision three of
this section.
2. The plan of operation shall include the following:
a. [The] THE organizational structure of the corporation including the
approximate number and compensation of employees;
b. [A] A narrative description of the system;
c. [The] THE types and approximate cost of data processing, communi-
cation and transmission facilities that will be [utilized] USED, includ-
ing back-up systems;
d. [Security] SECURITY measures;
e. [The] THE type and number of betting opportunities to be offered;
f. [The] THE race tracks and races for which bets will be taken;
g. [The] THE maximum and minimum number of retail outlets or betting
offices to be established;
h. [The] THE proposed system of accounts; and
i. [The] THE amount and proposed sources of financing.
3. Within ninety days of receipt of the feasibility study and plan,
the [board] COMMISSION shall issue an order approving the plan, approv-
ing it with modifications or denying approval and stating its reasons
therefor. Within such period the [board] COMMISSION may request addi-
tional information or suggest amendments. If the [board] COMMISSION
fails to approve the plan without modification, the corporation may
request a public hearing to be held within thirty days of the issuance
of an order approving an application with modifications or denying it.
The [board] COMMISSION shall issue its final determination within ten
days of such hearing. The corporation may submit an amended application
no sooner than ninety days after a denial.
4. A plan of operation may be amended from time to time at the request
of either the corporation or the [board] COMMISSION. The corporation
shall have the right to be heard concerning any amendment to the plan
proposed after implementation and the [board] COMMISSION shall dispose
of such proposed amendments as expeditiously as practicable, but no
later than thirty days following submission by the corporation or, in
the case of amendments proposed by the [board] COMMISSION, objection by
the corporation.
5. Any arrangements for telecasts or broadcasts of running races
pursuant to contracts with track operators shall constitute a part of
the plan of operation, or an amendment thereto, as the case may be.
6. The plan of operation of the New York city off-track betting corpo-
ration in effect on July first, nineteen hundred seventy-three, shall be
deemed approved by the [board] COMMISSION, but shall thereafter be
subject to the general jurisdiction of the [board] COMMISSION in the
same manner as are the plans of other regional corporations.
7. a. The city of Schenectady may continue to operate off-track pari-
mutuel betting within such city, subject to the jurisdiction of the
[state racing and wagering board] COMMISSION, until the [board] COMMIS-
SION approves a plan of operation submitted by the Capital District
regional off-track betting corporation and such plan of operation is
implemented; provided, however, that during any period that the city of
S. 7639 82
Schenectady continues to operate off-track pari-mutuel betting within
such city pursuant to this subdivision, it may accept off-track wagers
on races at any harness track within the state which so agrees subject
to the approval of the [state racing and wagering board] COMMISSION
until such time as the harness track located within the Capital District
and the city of Schenectady mutually agree on the provision of appropri-
ate space and facilities at such track for such city and such agreement
is implemented. Such plan of operation shall make due provision with
respect to investments and obligations of the city of Schenectady made
or incurred in the operation of off-track pari-mutuel betting. The coun-
ty of Schenectady shall reimburse the city of Schenectady on account of
lost revenues from the operation of off-track betting. The amount of
reimbursement shall be calculated under the rules of the [board] COMMIS-
SION to guarantee that the city shall receive annually an amount equal
to the net revenue received from off-track betting for the calendar year
nineteen hundred seventy-three or a [per centum] PERCENT of the net
revenues received by such county obtained by dividing the bets originat-
ing in such city by the bets originating in such county during the
distribution period, whichever is less. Reimbursement shall continue for
a period of ten years and shall be made in substantially equal quarterly
payments.
b. Until such time as the Capital District regional off-track betting
corporation's plan of operation has been approved by the [state racing
and wagering board] COMMISSION and the county of Schenectady has enacted
enabling legislation to join such corporations and such county's partic-
ipation has been implemented, the city of Schenectady shall have all the
rights, powers, duties and obligations of the county of Schenectady
under this chapter, including but not limited to the right to partic-
ipate in the formation of such corporation or subsequently to partic-
ipate in the operation thereof, as the case may be, except that the
geographical boundaries of such city's participation shall be limited to
the city of Schenectady.
8. The [board] COMMISSION may authorize and approve:
a. [An] AN application submitted by the New York city off-track
betting corporation to amend its plan of operation, pursuant to the
provisions of this section, to provide for the display in no more than
two existing facilities within Richmond county of telecasts of live
audio and visual signals of harness racing from any harness racing asso-
ciation or corporation within its region; provided, however, that
(i) the association or corporation conducting such racing has entered
into a written agreement for such telecasts with the New York city off-
track betting corporation pursuant to section five hundred twenty-seven
of this chapter, which agreement shall terminate no later than the thir-
tieth day of June, nineteen hundred eighty-five,
(ii) all expenses incurred in the implementation of such amendment to
its plan of operation for such telecasting shall be the responsibility
of the New York city off-track betting corporation, and
(iii) the [board] COMMISSION shall submit reports to the governor and
the legislature evaluating the results of such experiment on the compat-
ibility with the well-being of the horse racing and breeding industries
in this state, and its effect on handle and attendance at off-track
facilities within Richmond county, and including recommendations regard-
ing the future authorization of the telecast of live audio and visual
signals into off-track betting facilities; and
b. [One] ONE other application submitted by an off-track betting
corporation, other than the New York city off-track betting corporation,
S. 7639 83
to amend its plan of operation, pursuant to the provisions of this
section, to provide for the display in two existing facilities within
its region of telecasts of live audio and visual signals of harness
racing from any harness racing association or corporation within its
region; provided however, that
(i) the association or corporation conducting such racing has entered
into a written agreement for such telecasts with such off-track betting
corporation pursuant to section five hundred twenty-seven of this chap-
ter, which agreement shall terminate no later than the thirtieth day of
June, nineteen hundred eighty-five,
(ii) all expenses incurred in the implementation of such amendment to
its plan of operation for such telecasting shall be the responsibility
of the off-track betting corporation, and
(iii) the [board] COMMISSION shall submit reports to the governor and
the legislature evaluating the results of such experiment on the compat-
ibility with the well-being of the horse racing and breeding industries
in this state, and at off-track facilities within its region, and
including recommendations regarding the future authorization of the
telecast of live audio and visual signals into off-track betting facili-
ties.
c. [Provided] PROVIDED, however, that such audio and visual telecasts
into approved facilities shall commence no earlier than sixty days after
such telecasts have been approved. During such time, the off-track
betting corporation shall provide to the [board] COMMISSION daily data,
to include but not be limited to, wagers, separately by type of racing
and wagers, attendance and promotion expenditures of such facilities in
such manner as the [board] COMMISSION may require. Such data [will]
SHALL be used as the pre-telecast base to evaluate the impact of such
telecasts. In addition, such similar data and information shall also be
supplied to the [board] COMMISSION during the period that such telecasts
are authorized. No change in the types of wagers offered to patrons may
be made without prior written approval by the [board] COMMISSION of at
least thirty days in advance of such requested change.
§ 100. Section 522 of the racing, pari-mutuel wagering and breeding
law, subdivision 1 as amended by chapter 18 of the laws of 2008, subdi-
vision 2 as amended by chapter 38 of the laws of 2006 and subdivision 4
as added by chapter 241 of the laws of 2010, is amended to read as
follows:
§ 522. Suspension of approval. 1. The [board] COMMISSION may suspend
its approval of any plan of operation if the regional corporation whose
plan of operation has been approved or its officers or directors [fail]
FAILS to conduct off-track pari-mutuel betting on horse races in accord-
ance with the provisions of the plan of operation, with the applicable
rules of the [board] COMMISSION or with the provisions of this article,
article five and article six of this chapter, as the case may be; or if
such corporation or its officers or directors shall knowingly permit on
any of its premises lotteries, pool-selling or bookmaking or any other
kind of gambling, in violation of this chapter or of the penal law.
Suspension shall continue for the period necessary to remedy the situ-
ation or condition requiring such suspension.
2. If the [board shall determine to suspend] COMMISSION SUSPENDS
approval of any plan of operation [it] THE COMMISSION shall give the
regional corporation involved notice of the time and place for a hearing
before the [board] COMMISSION, at which the [board will] COMMISSION
SHALL hear such regional corporation in reference thereto. The [board]
COMMISSION may continue such hearing from time to time for the conven-
S. 7639 84
ience of all parties. Any of the parties affected by such hearing may be
represented by counsel, and the [board] COMMISSION may be represented by
its own counsel or by the attorney general. In the conduct of such hear-
ing the [board] COMMISSION shall not be bound by technical rules of
evidence, but all evidence offered before the [board] COMMISSION shall
be reduced to writing, and such evidence together with the exhibits, if
any, and the findings of the [board] COMMISSION shall be permanently
preserved and shall constitute the record of the [board] COMMISSION in
such case. Within thirty days after such hearing, the [board] COMMIS-
SION shall make a final determination. Such hearing may be presided over
by the [chairperson] CHAIR of the [board] COMMISSION or by any member or
an officer of the [board] COMMISSION designated by the [chairperson]
CHAIR in writing to act as hearing officer and such person or persons
may issue subpoenas for witnesses and administer oaths to witnesses. The
hearing officer, at the conclusion of the hearing, shall make findings,
which, if concurred in by [two members] A MAJORITY OF A QUORUM of the
[board] COMMISSION, shall become the findings of the [board] COMMISSION.
If [it] THE COMMISSION determines that such approval [be] IS suspended,
[it] THE COMMISSION shall make an order accordingly[,] and shall cause
such order to be entered on its minutes and a copy thereof served on
such regional corporation. The action of the [board] COMMISSION in
suspending such approval shall be reviewable in the supreme court in the
manner provided by the provisions of article seventy-eight of the civil
practice law and rules.
3. The [board] COMMISSION may suspend approval of any plan of opera-
tion for a reason set forth in subdivision one of this section as of the
delivery to the regional corporation of the notice of hearing required
by subdivision two of this section pending final determination of the
[board] COMMISSION following the hearing; provided, however, that no
suspension of approval pursuant to this subdivision shall be for a peri-
od longer than twenty days.
4. [In] THE COMMISSION, IN addition to its power to suspend or revoke
plans of operation approved or licenses granted by it, [the board] is
hereby authorized and empowered to impose monetary fines upon any corpo-
ration, association or person participating in any way in off-track
betting on which pari-mutuel betting is conducted, other than as a
patron, and whether licensed by the [board] COMMISSION or not, for
violation of any provisions of this chapter, or the rules promulgated by
the [board] COMMISSION pursuant thereto, or an approved plan of opera-
tion, not exceeding fifty thousand dollars for each violation. The
[board] COMMISSION is further authorized and empowered to impose mone-
tary fines, not exceeding fifty thousand dollars for each violation,
upon any such corporation, association or person for a violation of any
order issued by the [board] COMMISSION pursuant to the provisions of
this chapter or the rules promulgated by the [board] COMMISSION pursuant
thereto, provided that a copy of such order shall have been served
either personally or by certified mail, upon the corporation, associ-
ation or person to whom the same was directed, prior to the occurrence
of the violation for which such fine is imposed. The [board] COMMISSION
shall impose such monetary fines, subject to the notice and hearing
provisions of the state administrative procedure act. Such fines shall
be paid into the state treasury. The action of the [board] COMMISSION in
imposing any monetary fine shall be reviewable in the supreme court in
the manner provided by and subject to the provisions of article seven-
ty-eight of the civil practice law and rules.
S. 7639 85
§ 101. The opening paragraph and subdivisions 2, 3, 4, 6, 7 and 9 of
section 523 of the racing, pari-mutuel wagering and breeding law, subdi-
vision 4 as amended by chapter 286 of the laws of 1985, paragraph a of
subdivision 6 as amended by chapter 346 of the laws of 1990, paragraph b
of subdivision 6 as amended by chapter 18 of the laws of 2008, subdivi-
sion 7 as amended by chapter 2 of the laws of 1995 and subdivision 9 as
added by chapter 281 of the laws of 1994, are amended to read as
follows:
The [board] COMMISSION shall require that any regional corporation
conduct off-track pari-mutuel betting in accordance with this section.
2. Exotic and multiple bets on races run within the state may be
approved by the [board] COMMISSION without a comparable on-track pool,
provided that the corporation or association conducting such races shall
have filed with the [board] COMMISSION a written consent for such off-
track exotic or multiple bets on races held at its track.
3. The [board] COMMISSION may approve separate off-track pools on
races run in other states subject to the limitations of this section and
of subdivision eight of this section in particular.
4. No regional corporation authorized to conduct off-track betting by
the [board] COMMISSION shall accept off-track wagers on races run at any
harness track located without its region while a harness track within
its region is conducting a race meeting involving pari-mutuel betting
without the approval of the regional operating harness track; provided,
however, that for the purposes of this subdivision, the Suffolk region,
the Nassau region, the New York city region, and the portion of the
Catskill region outside a special betting district shall be considered a
single region; and further provided, however, that for the purposes of
this subdivision, there shall be created a harness special betting
district, consisting of the counties of Cayuga, Chenango, Cortland,
Franklin, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego,
Otsego, St. Lawrence and Tompkins in which no off-track betting on races
run at a harness track without such special betting district shall be
permitted while a harness track within such special betting district is
conducting a race meeting involving pari-mutuel betting.
6. a. No regional corporation may accept wagers on races run at a
thoroughbred or steeplechase track in another state or country while a
thoroughbred or steeplechase track within this state is conducting a
race meeting involving pari-mutuel betting; provided, however, that
notwithstanding any inconsistent provision, the [board] COMMISSION may
designate no more than fifteen thoroughbred or steeplechase races per
year as races of special interest on which off-track pari-mutuel betting
may be accepted by regional corporations, provided further that for
purposes of this subdivision the acceptance of wagers on a series of
races known as the "Breeders' Cup" shall be considered as a single
thoroughbred or steeplechase race of special interest and all such races
shall be determined in accordance with article nine of this chapter.
b. When a race meeting is not being conducted by a franchised corpo-
ration and a thoroughbred race meeting is being conducted at a track
located within the thoroughbred special betting district, regional
corporations and portions of regional corporations outside such
district, shall, in addition to accepting wagers on races at such track,
also be permitted to accept wagers on thoroughbred races run in another
state. In the event that wagers are accepted on races run at both a
track located in the thoroughbred special betting district and at a
track located in another state, the balance of the amount payable to
tracks within this state pursuant to paragraph f of subdivision one of
S. 7639 86
section five hundred twenty-seven of this article, but (i) not less than
one [per centum] PERCENT on regular and multiple wagering and two [per
centum] PERCENT on exotic wagers, shall be paid to the track located
within the thoroughbred special betting district running thoroughbred
races, and (ii) not less than three-quarters of one [per centum] PERCENT
of regular and multiple wagering and one and one-quarter [per centum]
PERCENT on exotic wagers shall be paid to the harness track operator
conducting racing within the region within which the wagers on such
out-of-state races are placed.
c. If as a result of the authorization granted in paragraph b of this
subdivision, the average daily distribution to harness track operators
from regional off-track betting corporations and attributable to the
conduct of off-track betting on thoroughbred races run concurrently by
both an in-state and an out-of-state track operator during the period
from June first, nineteen hundred seventy-eight through May thirty-
first, nineteen hundred seventy-nine and each succeeding [twelve month]
TWELVE-MONTH period thereafter is less than the average daily distrib-
ution to such operators from off-track betting corporations and attrib-
utable to the conduct of racing by a thoroughbred racing association
during the base period of June first, nineteen hundred seventy-seven
through May thirty-first, nineteen hundred seventy-eight, such operators
shall be entitled to a credit against the state tax imposed upon its
pari-mutuel revenues. The tax credit for any [twelve month] TWELVE-MONTH
period shall be an amount calculated by multiplying the shortfall in the
average daily distribution by the number of days in each [twelve month]
TWELVE-MONTH period that regional off-track betting corporations conduct
betting on thoroughbred races run concurrently by both an in-state and
an out-of-state track operator. The [board] COMMISSION shall so certify
to the [state tax commission] DEPARTMENT OF TAXATION AND FINANCE the
amount of credit applicable to each harness track operator no later than
thirty days following the close of each [twelve month] TWELVE-MONTH
period.
7. No regional corporation may accept wagers on races run at a harness
track in another state or country while a harness track within this
state is conducting a race meeting involving pari-mutuel betting;
provided, however, that notwithstanding any inconsistent provisions the
[board] COMMISSION may designate no more than fifty harness races per
year as races of special interest on which off-track pari-mutuel betting
may be accepted by regional corporations.
9. [(a)] Notwithstanding any other provision of this article any
regional corporation having a missed pool as defined in this subdivision
shall dispose of such pool [as follows:
(1) Any missed pools of wagers placed at off-track betting parlors
subsequent to December thirty-first, nineteen hundred eighty-two and
prior to August first, nineteen hundred ninety-four which were not used
to calculate payouts to winning bettors because such wagers failed to be
transmitted to and were not included in the statewide pari-mutuel
betting pool shall be retained by such corporation for its ordinary
operating expenses.
(2) On or before August first, nineteen hundred ninety-four the board
shall promulgate] ACCORDING TO rules and regulations OF THE COMMISSION,
which SHALL direct [said] SUCH regional corporations and [said] SUCH
missed pools to the in-state track conducting the race on which the
wager was placed to be used for the next available common pool.
§ 102. Section 524 of the racing, pari-mutuel wagering and breeding
law, subdivisions 1 and 4 as amended by chapter 459 of the laws of 2010
S. 7639 87
and subdivision 3 as amended by section 9 of part F-3 of chapter 62 of
the laws of 2003, is amended to read as follows:
§ 524. Reports, accounts, investigations. 1. The [board] COMMISSION
shall, consistent with the powers of the department of taxation and
finance, prescribe uniform methods of keeping accounts, records and
books to be observed by regional corporations. The [board] COMMISSION
shall, consistent with the powers of the department of taxation and
finance, prescribe by order forms of accounts, records and memoranda to
be kept by such corporations. The [board] COMMISSION shall have power to
visit, investigate, and place expert accountants, or such other persons
as [it] THE COMMISSION may deem necessary, in the offices, or other
places of business of any such corporation for the purpose of seeing
that the provisions of this chapter and the rules and regulations issued
by the [board] COMMISSION thereunder are strictly complied with. Upon a
finding by the [board] COMMISSION of a reasonable basis to believe that
any such [offtrack] OFF-TRACK betting corporation is not complying with
the rules and regulations of the [board] COMMISSION or with applicable
provisions of law, the [board] COMMISSION, after providing a written
report setting forth its findings, may by a majority vote direct such
corporation to cause [its] SUCH CORPORATION'S business and managerial
practices to be audited at [its] SUCH CORPORATION'S own expense to
ensure that such corporation complies with the rules and regulations of
the [board] COMMISSION or any applicable provision of law.
2. Each regional corporation approved by the [board] COMMISSION to
conduct off-track pari-mutuel betting shall submit daily accounting
reports to the [board] COMMISSION, within forty-eight hours after each
racing day, accounting for all tickets sold and winning tickets cashed
or refunds and such other information as the [board] COMMISSION may
require. Copies of such daily reports shall be submitted to each racing
association or corporation conducting races on which off-track wagers
were accepted by such regional corporation.
3. Quarterly financial statements shall be submitted by each corpo-
ration to the [board] COMMISSION within fifteen days after the end of
each calendar quarter[,] and shall include a balance sheet, a statement
of revenue net of expenses, statement of cash flow, a breakdown of oper-
ating and administrative expenses for the quarter preceding submission
of the report and for the year to date. All such reports shall be
subject to audit by the state comptroller and shall be public records.
4. The reports required under this section shall be in such form and
contain such other matters as the [board] COMMISSION may determine from
time to time to be necessary to disclose accurately the financial condi-
tion and operation of such corporations. Each regional corporation shall
submit a copy of the corporation's annual budget to the [board] COMMIS-
SION no later than twenty days following approval of such budget by the
corporation's board of directors. The [board] COMMISSION may for good
cause shown grant a reasonable extension of time for the filing of any
such report.
§ 103. Section 525 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 538 of the laws of 1999, is amended as
follows:
§ 525. Statewide transmission. Subject to the general limitations of
this article, the provisions of its plan of operation and the rules and
regulations of the [board] COMMISSION, each regional corporation may
provide for direct transmission of off-track wagering information to a
track within its region for the purpose of creating a joint or combined
pool as required by section five hundred twenty-three of this article.
S. 7639 88
§ 104. Section 526 of the racing, pari-mutuel wagering and breeding
law is amended to read as follows:
§ 526. Use of track facilities; combined pools. In order to effectuate
the general policy of this article that off-track and on-track wagers be
combined into single pools to provide uniform odds and payouts, track
operators shall be subject to the requirements of this section.
1. a. At the request of a regional corporation, a track operator
conducting a race meeting at a track in this state, shall, upon such
terms and conditions as may be agreed upon by such operator and the
corporation subject to the approval of the [board] COMMISSION, provide
appropriate space and facilities at its track whereby the corporation
may perform the functions hereinafter described with respect to the
transmission and reception of wagering and racing information; provided,
however, that payments to the track operator pursuant to section five
hundred twenty-seven of this article shall be deemed adequate consider-
ation for the occupancy of vacant space at such track or the use of
existing facilities. The terms and conditions shall provide that THE
CORPORATION SHALL BEAR the cost of any additional office space or the
installation, leasing, operation, maintenance and servicing of addi-
tional facilities or equipment [shall be borne by the corporation].
b. In the event that a corporation and such operator shall be unable
to agree upon the space and facilities of such track to be provided to
the corporation by such operator, or the terms and conditions of the use
and occupancy thereof by the corporation, the [board] COMMISSION shall,
upon application in writing made either by the corporation or by such
operator, determine the appropriate space and facilities to be provided
to such corporation and the terms, conditions and costs of its use and
occupancy by such corporation.
c. Upon the decision of the [board] COMMISSION, the corporation shall
be entitled to use and occupy immediately the space and facilities
prescribed by the [board] COMMISSION, upon the terms and conditions
established by the [board] COMMISSION.
2. No track operator shall prevent a regional corporation from using
and occupying the space and facilities prescribed according to subdivi-
sion one of this section, nor fail to cause off-track wagers to be
combined with on-track wagers into single pools, provided off-track
wagering information is transmitted to the track in an accurate and
timely fashion, nor prevent such transmission of racing information by
the regional corporation to its offices as may be consistent with the
regulations of the [board] COMMISSION.
3. The [board] COMMISSION shall be entitled to the use and occupancy
of space and facilities upon reasonable terms in like manner as a
regional corporation whenever [it] THE COMMISSION shall so require in
order to perform its statewide transmission function pursuant to section
five hundred twenty-five of this article. Any claim arising from such
occupancy and use shall be determined by the court of claims.
4. The [board] COMMISSION, on its own behalf or on behalf of a
regional corporation, may apply to the supreme court for an injunction
directing any track operator to comply with this section. In any such
action the [board] COMMISSION shall not be required to post bond or
security.
5. Nothing contained in this section shall be construed as requiring
the [board] COMMISSION or any regional corporation to pay or deliver to
any track operator any sum received from any bettor as a wager or other-
wise, but the net amount due from the [board] COMMISSION or such
regional corporation to the operator, in the event that payments to
S. 7639 89
winning bettors at the track exceed the portion of the pari-mutuel pool
attributable to such bettors, or the net amount due from the operator to
the [board] COMMISSION or regional corporation, in the event that
payments to winning bettors off the track exceed the portion of the
pari-mutuel pool attributable to such bettors, as the case may be, shall
be paid within seven days of a race.
§ 105. The opening paragraph of subdivision 1, paragraphs b and c of
subdivision 3 and subdivisions 5 and 5-a of section 527 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 18 of the
laws of 2008 and the opening paragraph of subdivision 1 as amended by
chapter 241 of the laws of 2019, are amended to read as follows:
The disposition of the retained commission from pools resulting from
regular, multiple or exotic bets, as the case may be, whether placed on
races run within a region or outside a region, conducted by racing
corporations, harness racing associations or corporations, quarter horse
racing associations or corporations or races run outside the state shall
be governed by the tables in paragraphs a and b of this subdivision. The
rate denominated "state tax" shall represent the rate of a reasonable
tax imposed upon the retained commission for the privilege of conducting
off-track pari-mutuel betting, which tax is hereby levied and shall be
payable in the manner set forth in this section. Each off-track betting
corporation shall pay to the [gaming] commission as a regulatory fee,
which fee is hereby levied, six-tenths of one percent of the total daily
pools of such corporation. Each corporation shall also pay twenty
percent of the breaks derived from bets on harness races and fifty
percent of the breaks derived from bets on all other races to the agri-
culture and New York State horse breeding and development fund and to
the thoroughbred breeding and development fund, the total of such
payments to be apportioned fifty percent to each such fund. For the
purposes of this section, the New York city, Suffolk, Nassau, and the
Catskill regions shall constitute a single region and any thoroughbred
track located within the Capital District region shall be deemed to be
within such single region. A "regional meeting" shall refer to either
harness or thoroughbred meetings, or both, except that a franchised
corporation shall not be a regional track for the purpose of receiving
distributions from bets on thoroughbred races conducted by a thorough-
bred track in the Catskill region conducting a mixed meeting. With the
exception of a harness racing association or corporation first licensed
to conduct pari-mutuel wagering at a track located in Tioga, Saratoga or
Westchester county after January first, two thousand five, racing corpo-
rations first licensed to conduct pari-mutuel racing after January
first, nineteen hundred eighty-six or a harness racing association or
corporation first licensed to conduct pari-mutuel wagering at a track
located in Genesee County after January first, two thousand five, and
quarter horse tracks shall not be "regional tracks"; if there is more
than one harness track within a region, such tracks shall evenly divide
payments made pursuant to the tables in paragraphs a and b of this
subdivision when neither track is running. In the event a track elects
to reduce its retained percentage from any or all of its pari-mutuel
pools, the payments to the track holding the race and the regional track
required by paragraphs a and b of this subdivision shall be reduced in
proportion to such reduction. Nothing in this section shall be construed
to authorize the conduct of off-track betting contrary to the provisions
of section five hundred twenty-three of this article.
b. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
S. 7639 90
equal to one and eighty-five hundredths [per centum] PERCENT of regular
pools and an amount equal to two and thirty-five hundredths [per centum]
PERCENT of multiple pools and two and thirty-five hundredths [per
centum] PERCENT of exotic pools derived from wagers on races conducted
by a franchised corporation shall be paid to such corporation to be used
exclusively for the purpose of increasing purses, including stakes,
premiums and prizes. [Provided, however, for the period July twenty-
fifth, two thousand one through June thirtieth, two thousand four, a
regional corporation for the New York city, Nassau, Suffolk or Catskill
region shall pay, of the portion of the commissions retained by such
regional corporation on all pools, an amount equal to six and fifty
hundredths per centum to such franchised corporation of which three and
eighty hundredths per centum shall be used exclusively for the purpose
of increasing purses, including stakes, premiums and prizes. Provided,
further for the period July twenty-fifth, two thousand one through June
thirtieth, two thousand four a regional corporation for the capital or
western region shall pay to such franchised corporation of the portion
of the commissions retained by such regional corporation on all pools
when there is a regional meeting, an amount equal to three and eighty-
five hundredths of which two and eighty-five hundredths shall be used
exclusively for the purpose of increasing purses, including stakes,
premiums and prizes.] An additional two and sixty-five hundredths shall
be paid to the regional harness track. When there is no regional meet-
ing, an amount equal to four and sixty-five hundredths shall be paid to
such nonprofit racing association of which two and [ninety hundredths]
NINE TENTHS shall be used exclusively for the purpose of increasing
purses, including stakes, premiums and prizes. An additional one and
eighty-five hundredths shall be paid to the regional harness track. In
addition to any other amounts required to be paid to a franchised corpo-
ration, for the period July twenty-first, nineteen hundred ninety-five
through July twenty-fourth, two thousand one, an additional one and
twenty-five hundredths [per centum] PERCENT of multiple pools derived
from wagers on races conducted by a franchised corporation shall be paid
to such association for its own use and purposes. Any portion of said
amount not so used during any year shall be used during the following
year, failing which it shall be returned to the regional corporation on
or before April first in the year following the year in which it is not
so used to be distributed to the participating local governments.
c. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one and one-tenth [per centum] PERCENT of regular and multiple
pools and six-tenths of one [per centum] PERCENT of exotic pools derived
from wagers on races conducted by a thoroughbred racing corporation,
licensed by the [board] COMMISSION, other than a franchised corporation,
shall be paid to such thoroughbred racing corporation to be used exclu-
sively for the purpose of increasing purses, including stakes, premiums
and prizes. Any portion of [said] SUCH amount not so used during any
year shall be used during the following year, failing which [it] SUCH
AMOUNT shall be returned to the regional corporation on or before April
first in the year following the year in which it is not so used to be
distributed to the participating local governments.
5. a. One [per centum] PERCENT of daily pools derived from bets on
harness races shall be paid to the agriculture and New York state breed-
ing and development fund except that for super exotic betting pools such
amount shall be three [per centum] PERCENT of such bets.
S. 7639 91
b. An amount equal to one-half of one [per centum] PERCENT of total
daily off-track pari-mutuel pools resulting from regular, multiple and
exotic bets and three [per centum] PERCENT of super exotic bets on
thoroughbred or steeplechase races shall be paid to the New York state
thoroughbred breeding and development fund.
c. From the total breaks retained by a regional corporation, an amount
equal to ten [per centum] PERCENT of the breaks derived from bets on
quarter horse races shall be paid to the New York state quarter horse
breeding and development fund.
5-a. Notwithstanding any other provision of law, a regional corpo-
ration shall retain, in addition to those amounts described in the open-
ing paragraph of this section, from regular and multiple bets on races
run at tracks electing to withhold pursuant to section two hundred thir-
ty-seven or section three hundred nineteen of this chapter, an amount
equal to one [per centum] PERCENT of pools resulting from total wagering
at such tracks, one-half of which shall be paid to such tracks or non-
profit county agricultural society, except that the full one [per
centum] PERCENT shall be paid to a thoroughbred track in the Catskill
region conducting a mixed meeting, to be used exclusively for capital
improvements pursuant to sections two hundred thirty-seven and three
hundred nineteen of this chapter and subject to the rules and regu-
lations of the [racing and wagering board] COMMISSION and one-half to be
retained by the regional corporation for its own corporate purposes.
§ 105-a. Paragraph b of subdivision 3 of section 527 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 94 of the
laws of 2001, is amended to read as follows:
b. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one and one-quarter [per centum] PERCENT of regular and multi-
ple pools and three-quarters of one [per centum] PERCENT of exotic pools
derived from wagers on races conducted by a nonprofit racing association
shall be paid to such nonprofit racing association to be used exclusive-
ly for the purpose of increasing purses, including stakes, premiums and
prizes. [Provided, however, for the period July twenty-fifth, two thou-
sand one through June thirtieth, two thousand four, if a regional corpo-
ration for the New York city, Nassau, Suffolk or Catskill region shall
pay, of the portion of the commissions retained by such regional corpo-
ration on all pools, an amount equal to six and fifty hundredths per
centum to such nonprofit racing association of which three and eighty
hundredths per centum shall be used exclusively for the purpose of
increasing purses, including stakes, premiums and prizes. Provided,
further that for the period July twenty-fifth, two thousand one through
June thirtieth, two thousand four a regional corporation for the capital
or western region shall pay to such nonprofit racing association of the
portion of the commissions retained by such regional corporation on all
pools when there is a regional meeting, an amount equal to three and
eighty-five hundredths of which two and fifty hundredths shall be used
exclusively for the purpose of increasing purses, including stakes,
premiums and prizes.] An additional two and sixty-five hundredths shall
be paid to the regional harness track. When there is no regional meet-
ing, an amount equal to four and sixty-five hundredths shall be paid to
such nonprofit racing association of which two and [ninety hundredths]
NINE-TENTHS shall be used exclusively for the purpose of increasing
purses, including stakes, premiums and prizes. An additional one and
eighty-five hundredths shall be paid to the regional harness track. Any
portion of said amount not so used during any year shall be used during
S. 7639 92
the following year, failing which it shall be returned to the regional
corporation on or before April first in the year following the year in
which it is not so used to be distributed to the participating local
governments.
§ 106. Section 528 of the racing, pari-mutuel wagering and breeding
law, subdivision 3 as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
§ 528. Agreements involving other states. 1. The [board] COMMISSION
shall be empowered to conclude agreements with another state or a racing
corporation or association in another state, as the case may be, on
behalf of any or all regional corporations for the purpose of conducting
off-track betting on races run in another state, subject to the other
provisions of this article.
2. No regional corporation shall conclude such an agreement without
the express approval of the [board] COMMISSION, which shall be withheld
upon a finding that such agreement would be contrary to the purposes of
this article or upon the [board's] COMMISSION'S determination to act
directly, pursuant to this section.
3. Subdivisions one and two of this section shall apply in like manner
to any agreements with another state or any agency, subdivision or enti-
ty thereof concerning off-track pari-mutuel betting conducted in another
state on races run in this state. No franchised corporation, nor any
racing corporation or association licensed by the [board] COMMISSION
shall enter into such an agreement without the [board's] COMMISSION'S
express approval.
§ 107. Section 529 of the racing, pari-mutuel wagering and breeding
law is amended to read as follows:
§ 529. Unclaimed winnings and refunds. The [board] COMMISSION shall
require each regional corporation to establish a non-escrowed account
for payment of outstanding winning tickets and for payment of refunds to
ticket holders entitled thereto under the rules of the [board] COMMIS-
SION.
1. All tickets must be presented for payment to the regional corpo-
ration from which purchased prior to April first of the year following
the year of purchase.
2. Ninety-five percent of the balance of such account remaining
unclaimed as of the last day of February of such year shall be paid to
the [state tax commission] DEPARTMENT OF TAXATION AND FINANCE by March
fifteenth. On or before April tenth of each year the balance of such
account and any other unclaimed amounts received in the course of
conducting off-track betting shall be paid by such corporation to the
[state tax commission] DEPARTMENT OF TAXATION AND FINANCE. A penalty of
five percent and interest at the rate of one percent per month from the
due date to the date of payment of the unclaimed balance due March
fifteenth or April tenth, as the case may be, shall be payable in case
such balance is not paid when due. Such amounts, interest and penalties
when collected by the [state tax commission] DEPARTMENT OF TAXATION AND
FINANCE shall be deposited into the general fund of the state treasury.
§ 108. Section 530 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 530. Job security for track employees. Plans of operation of
regional off-track betting corporations shall include provision for job
security for employees of racetracks within each region compatible with
and in furtherance of the objectives of this article and subject to the
approval of the [state racing and wagering board] COMMISSION. Job secu-
S. 7639 93
rity agreements that may be concluded from time to time after July
first, nineteen hundred seventy-three between track employee organiza-
tions and the New York city off-track betting corporation or any other
regional off-track betting corporation shall be subject to the approval
of the [board] COMMISSION and when approved shall be deemed a part of
the plan of operation of such corporation and any other regional corpo-
ration; provided, however, that nothing in this article or any other
provision of this chapter shall be construed to require or empower the
[board] COMMISSION to abrogate job security agreements between the New
York city off-track betting corporation and any track employee organiza-
tion, in effect on July first, nineteen hundred seventy-three and any
such contracts shall be deemed to be a part of the plan of operation of
such corporation.
§ 109. Section 531 of the racing, pari-mutuel wagering and breeding
law is amended to read as follows:
§ 531. Reduction of local admissions taxes as a pre-condition of off-
track betting. 1. Notwithstanding article eight of this chapter[,] and
subdivision twenty-four of section sixty-four of the town law, no local-
ly imposed taxes on admissions to harness or running races shall be in
the aggregate more than three [per centum] PERCENT of such admissions on
and after the first day that off-track pari-mutuel betting is conducted
or continues to be conducted in such locality imposing the tax by a
regional corporation, pursuant to this article, established for the
region in which such races are conducted.
2. A regional corporation, except for such corporations consisting of
only one participating county or one city, shall annually reimburse any
city or town within such region for any reduction in admissions tax
revenues equal to the difference between such revenues for:
a. [The] THE twelve months immediately preceding the reduction
required by this section, and
b. [Each] EACH twelve-month period subsequent to July thirty-first,
nineteen hundred seventy-eight.
§ 110. Subdivisions 1, 3 and 4 of section 532 of the racing, pari-mu-
tuel wagering and breeding law, subdivision 1 and the opening paragraph
of subdivision 3 as amended by chapter 115 of the laws of 2008, subpara-
graph (v) of paragraph b of subdivision 3 as added by chapter 286 of the
laws of 1985, subparagraph (vi) of paragraph b of subdivision 3 as
amended by chapter 201 of the laws of 2017, are amended to read as
follows:
1. Notwithstanding any other provision of law, each regional off-track
betting corporation, or off-track betting operator, including the New
York city off-track betting corporation, conducting off-track betting
shall impose a surcharge of five [per centum] PERCENT on the portion of
pari-mutuel wagering pools distributable to persons having placed bets
at off-track betting facilities located within such region. The revenues
derived from such surcharge, plus the breaks, shall be held separate and
apart from any amounts otherwise authorized to be retained from pari-mu-
tuel pools. Such surcharge is hereby levied subject to the conditions
set forth in this subdivision and article ten of this chapter.
3. The revenues received from any surcharge imposed by subdivision one
of this section, plus the breaks, shall be distributed monthly, as
follows:
a. [Fifty per centum] FIFTY PERCENT to such city, or to the counties
and cities entitled to receive revenues from the regional corporation
pursuant to section five hundred sixteen of this chapter and in the same
proportion as provided therein, or to an off-track betting operator; and
S. 7639 94
b. [The] THE balance as follows:
(i) where the track conducting the race on which the bet was placed is
located within a city with a population in excess of one hundred thou-
sand, to such city;
(ii) where the track conducting the race on which the bet was placed
is not located within a city with a population in excess of one hundred
thousand, to the county in which such track is located;
(iii) where the track conducting the race on which the bet was placed
is located partially within a city with a population in excess of one
million and partially within a county, twenty-five [per centum] PERCENT
of such balance to the city and the remainder to the county; [and]
(iv) where the track conducting the race on which the bet was placed
is located outside the state, in the same manner as described in para-
graph a of this subdivision[.];
(v) where the track conducting the race is located in a thoroughbred
special betting district and is simulcasting pursuant to section one
thousand eight of this chapter outside such special betting district,
ninety [per centum] PERCENT to the off-track betting operator and ten
[per centum] PERCENT to the county in which such track is located[.];
AND
(vi) for the period of September first, two thousand seventeen until
August thirty-first, two thousand twenty-two and where the track
conducting the race on which the bet was placed is a harness track
located in the county of Erie, to such track.
4. The [state racing and wagering board] COMMISSION shall issue regu-
lations providing for monthly distribution to cities and counties of the
revenues received under this section, through the regional off-track
betting corporation in which such cities or counties are located;
provided, however, in the event that such cities or counties otherwise
entitled to receive such revenues are not participating cities or coun-
ties with a regional off-track betting corporation then such monthly
distributions shall be payable directly to such cities or counties.
Regional off-track betting corporations that receive payments under this
subdivision shall distribute such payments to appropriate participating
cities and counties within three business days following receipt of such
payments. The [board] COMMISSION shall also provide for periodic
reports by regional off-track betting corporations to ensure that the
purposes of this section are carried out.
§ 111. Paragraphs b and c of subdivision 12 of section 604 of the
racing, pari-mutuel wagering and breeding law, as amended by chapter 115
of the laws of 2008, are amended to read as follows:
b. No rule or regulation promulgated by the corporation pursuant to
the provisions of this subdivision shall be effective until a copy ther-
eof is filed with the [racing and wagering board] COMMISSION.
c. Any violation of any rule or regulation, filed with the [racing and
wagering board] COMMISSION and designated by the letter "R" by resol-
ution of the board of directors of the corporation, shall be an offense
triable by a judge of the criminal court of the city, and shall be
punishable by imprisonment for not more than six months, or by a fine of
not more than one thousand dollars, or by both such imprisonment and
fine. All such fines collected shall be paid into the general fund of
the state. Any such rule or regulation shall be effective, notwithstand-
ing that any act or omission made an offense or punishable thereby may
be a crime or offense or punishable under any other provision of law;
S. 7639 95
§ 112. Subdivision 1 of section 610 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 115 of the laws of 2008, is
amended to read as follows:
1. The monetary transactions of the corporation and the keeping of its
books and accounts shall be under the supervision of the director of the
division of the budget. The chair of the [racing and wagering board]
COMMISSION may at any time request and shall be provided for review such
books and accounts.
§ 113. Subdivisions 4 and 7 of section 611 of the racing, pari-mutuel
wagering and breeding law are amended to read as follows:
4. Any resolution or resolutions authorizing any bonds or notes may
contain provisions, which shall be a part of the contract or contracts
with the holders thereof, as to:
a. [Pledging] PLEDGING all or any part of the moneys or revenues or
other assets of the corporation to secure the payment of such bonds or
notes;
b. [The] THE setting aside of reserves or sinking funds and the regu-
lation or disposition thereof;
c. [Limitations] LIMITATIONS on the purposes to which the proceeds of
the sale of any issue of bonds or notes then or thereafter to be issued
may be applied and pledging such proceeds to secure the payment of the
bonds or notes or any issue thereof;
d. [Limitations] LIMITATIONS on the issuance of additional bonds or
notes; the terms upon which such additional bonds or notes may be issued
and secured; the refunding of outstanding bonds or notes;
e. [The] THE procedures, if any, by which the terms of any contract
with the holders of bonds or notes may be extended or abrogated, the
amount of bonds or notes the holders of which must consent thereto and
the manner in which such consent may be given;
f. [The] THE creation of special funds into which any moneys or reven-
ues of the corporation may be deposited;
g. [Limitations] LIMITATIONS on the amounts that the corporation may
expend for administrative or other expenses thereof;
h. [Vesting] VESTING in a trustee such properties, rights, powers and
duties in trust as the corporation may determine and limiting or abro-
gating the right of the holders of the bonds or notes to appoint a trus-
tee under section six hundred sixteen of this chapter;
i. [Defining] DEFINING the acts or omissions to act [which] THAT shall
constitute a default in the obligations and duties of the corporation to
the holders of the bonds or notes and providing for the rights and reme-
dies of the holders of the bonds or notes in the event of such default,
including as a matter of right the appointment of a receiver; providing,
however, that such rights and remedies shall not be inconsistent with
the general laws of the state and the other provisions of this article;
AND
j. [Any] ANY other matters, of like or different character, [which]
THAT in any way affect the security or protection of the holders of the
bonds or notes.
7. The corporation, subject to such agreements with the holders of
bonds or notes as may then exist, shall have the power out of any funds
available therefor to purchase any bonds or notes issued by it at a
price not exceeding the redemption price thereof, which price shall be:
a. [If] IF the bonds or notes are then redeemable, the redemption
price then applicable plus accrued interest to the next interest payment
date thereon, or
S. 7639 96
b. [If] IF the bonds or notes are not then redeemable, the redemption
price applicable on the first date after such purchase upon which bonds
or notes become subject to redemption plus accrued interest to such
date. All bonds or notes so purchased shall be cancelled.
§ 114. Subdivision 1 of section 612 of the racing, pari-mutuel wager-
ing and breeding law, paragraph a of subdivision 1 as amended by chapter
115 of the laws of 2008, is amended as follows:
1. The corporation shall create and establish a special fund herein
referred to as the capital reserve fund, and shall pay into such capital
reserve fund:
a. [Any] ANY moneys appropriated and made available by the state for
the purpose of such capital reserve fund,
b. [Any] ANY proceeds of sale of bonds or notes to the extent provided
in the resolution or resolutions of the corporation authorizing the
issuance thereof, and
c. [Any] ANY other moneys [which] THAT may be made available to the
corporation for the purpose of such capital reserve fund from any other
source or sources. All moneys held in the capital reserve fund, except
as hereinafter provided, shall be used solely for the payment of the
principal of bonds of the corporation, the payment of interest on such
bonds, or the payment of any redemption premium required to be paid when
such bonds are redeemed prior to maturity; provided, however, that
moneys in such capital reserve fund shall not be withdrawn therefrom at
any time in such amount as would reduce the amount of such fund to less
than the maximum amount of principal and interest maturing and becoming
due in any succeeding fiscal year of the corporation on all bonds of the
corporation then outstanding, except for the purpose of paying principal
of and interest on such bonds of the corporation maturing and becoming
due and for the payment of which other moneys of the corporation are not
available. Any income or interest earned by, or increment to, the capi-
tal reserve fund due to the investment thereof may be transferred to
other funds or accounts to the extent it does not reduce the amount of
the capital reserve fund below the maximum amount of principal and
interest maturing and becoming due in any such succeeding fiscal year on
all bonds of the corporation then outstanding.
§ 115. Subdivision 2 of section 616 of the racing, pari-mutuel wager-
ing and breeding law is amended to read as follows:
2. Such trustee may, and upon written request of the holders of twen-
ty-five [per centum] PERCENT in principal amount of such bonds or notes
then outstanding shall, in his, HER or its own name:
a. [By] BY suit, action or special proceedings enforce all rights of
the holders of the bonds or notes, including the right to require the
corporation to carry out any agreements with such holders and to perform
its duties under this article;
b. [Bring] BRING suit upon such bonds or notes;
c. [By] BY action or suit, require the corporation to account as if it
were the trustee of an express trust for the holders of such bonds or
notes;
d. [By] BY action or suit, enjoin any acts or things [which] THAT may
be unlawful or in violation of the rights of the holders of such bonds
or notes; AND
e. [Declare] DECLARE all such bonds or notes due and payable, and if
all defaults shall be made good, then, with the consent of the holders
of twenty-five [per centum] PERCENT of the principal amount of such
bonds or notes then outstanding, annul such declaration and its conse-
quences.
S. 7639 97
§ 116. Subdivisions 1, 4 and 5 of section 619 of the racing, pari-mu-
tuel wagering and breeding law are amended to read as follows:
1. As used in this section the following terms shall mean and include:
a. "Corporation counsel." The corporation counsel of the city.
b. "Employee." Any officer, director or employee of the corporation, a
former officer, director or employee of the corporation, his OR HER
estate or judicially appointed personal representative. The term employ-
ee shall not include an independent contractor.
4. The duty to defend or indemnify and save harmless prescribed by
this section shall be conditioned upon:
a. [Delivery] DELIVERY to the corporation counsel at the office of the
law department of the city by the employee of the original or a copy of
any summons, complaint, process, notice, demand or pleading within ten
days after he OR SHE is served with such document, and
b. [The] THE full cooperation of the employee in the defense of such
action or proceeding and in defense of any action or proceeding against
the corporation based upon the same act or omission, and in the prose-
cution of any appeal. Such delivery shall be deemed a request by the
employee that the corporation provide for his OR HER defense pursuant to
this section. In the event that the corporation counsel shall assume an
employee's defense and thereafter the employee fails to or refuses to
cooperate in the formation or presentation of his OR HER defense, the
court shall permit the corporation counsel to withdraw his OR HER repre-
sentation ten days after giving written notice to the employee of his OR
HER intention to discontinue such representation.
5. In the event that the act or omission upon which the court proceed-
ing against the employee is based was or is also the basis of a disci-
plinary proceeding by the corporation against the employee, represen-
tation and indemnification pursuant to this section may be withheld:
a. [Until] UNTIL such disciplinary proceeding has been resolved, and
b. [Unless] UNLESS the resolution of the disciplinary proceeding exon-
erated the employee as to such act or omission.
§ 117. The opening paragraph of section 621 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 115 of the laws of
2008, is amended to read as follows:
Within one hundred twenty days after the end of the fiscal year of the
corporation, the directors thereof shall submit to the governor, the
legislature, the [racing and wagering board] COMMISSION and the state
comptroller a complete and detailed report setting forth:
§ 118. Section 702 of the racing, pari-mutuel wagering and breeding
law is amended to read as follows:
§ 702. Committee. The Harry M. Zweig memorial fund for equine research
committee is established for the purpose of administering the funds. The
committee [will] SHALL consist of not less than nine and not more than
fifteen members including but not limited to:
1. [The chairman] THE CHAIR of the [state racing and wagering board]
COMMISSION, or his OR HER designee[.];
2. [The] THE dean of New York state veterinary college at Cornell, or
his OR HER designee[.];
3. [A] A member or the executive director of the agriculture and New
York state horse breeding development fund to be nominated by such
fund[.];
4. [A] A member or the executive director of the New York state
thoroughbred breeding and development fund to be nominated by such
fund[.]; AND
S. 7639 98
5. [Other] OTHER bona fide residents of the state who have a cogent
interest in the racing and breeding industry in the state of which at
least five [will] SHALL be New York breeders, owners, trainers or veter-
inarians in equine practice.
The committee as so constituted pursuant to rules and regulations of
the [state racing and wagering board] COMMISSION is hereby continued,
and shall establish its own by-laws which will include a system for
electing its own officers and for perpetuating its membership, providing
for the terms of its members, their replacement and succession, and such
other administrative details as it deems necessary to effectuate the
purposes of this article. The [state racing and wagering board] COMMIS-
SION shall review such by-laws and amendments thereto prior to their
implementation.
§ 119. Section 703 of the racing, pari-mutuel wagering and breeding
law, subdivision 3 as added by section 1 of subpart C of part DD of
chapter 59 of the laws of 2019, is amended to read as follows:
§ 703. Finances of fund. 1. Two percent of all moneys accruing respec-
tively to the agriculture and New York state horse breeding development
fund and the New York state thoroughbred breeding and development fund,
for the purpose of conducting equine research, shall be deposited by
such funds in a special interest bearing account, title to which shall
be in New York state veterinary college at Cornell and control over
which shall be in the committee subject to audit by the state comp-
troller. Withdrawals from such accounts shall be made only upon the
authorization of the committee and the signatures of two of the commit-
tee's members as designated by the committee. All moneys transferred by
such funds to special accounts pursuant to rules and regulations of the
[state racing and wagering board] COMMISSION, prior to the date on which
this article shall have become law, shall be deemed to have been depos-
ited as provided in this subdivision. Moneys accrued subsequently shall
be deposited monthly within one month of their accrual by such funds and
notice thereof shall be forwarded to the committee and the [state racing
and wagering board] COMMISSION.
2. On or before January first and July first, of each subsequent
calendar year, such funds shall provide to the committee and the [state
racing and wagering board] COMMISSION a certified statement of amounts
then deposited to the credit of the committee and a projection of funds
to be deposited to the credit of such committee for the subsequent [six
month] SIX-MONTH period.
3. Upon the authorization through a resolution by the committee, the
fund may acquire moneys by the acceptance of conditional gifts, grants,
devises or bequests given in furtherance of the mission of the fund to
the extent that any such gift, grant, devise, or bequest is in the form
of cash, securities, or other form of personal property that is readily
convertible to cash, and only if the condition of the gift is that it be
used for the unrestricted purpose of equine research. The fund may not
accept a conditional gift, grant, devise, or bequest if the condition
would require the fund to undertake to acquire property, construct,
alter, or renovate any real property, or alter or suspend the research
that the fund is already conducting or supporting. All moneys accepted
shall be deposited into a segregated account subject to the requirements
and conditions of subdivision one of this section. The fund shall
provide notice of the acceptance of such moneys to the [gaming] commis-
sion.
§ 120. Subdivisions 4 and 6 of section 704 of the racing, pari-mutuel
wagering and breeding law are amended to read as follows:
S. 7639 99
4. The committee shall cause all such proposals to be transmitted
within five days of receipt, to the [state racing and wagering board]
COMMISSION.
6. The committee's approval, disapproval and/or recommendations with
regard to each proposal or its adoption of a budget shall be sent to the
[state racing and wagering board] COMMISSION.
§ 121. Section 705 of the racing, pari-mutuel wagering and breeding
law is amended to read as follows:
§ 705. Research grants. 1. Upon approval of a proposal by the commit-
tee, [it] THE COMMITTEE shall then enter into a contractual relationship
with the applicant for the research grant within the limit of the funds
available therefor and subject to the following limitations:
a. All grants so provided shall be used for the direct cost of
approved projects and shall not be used to supplant funds otherwise
available to the applicant or to the institution with which [he] THE
APPLICANT is affiliated, or for the general cost recoveries [which] THAT
are rightfully the prior obligation of the institution to which the
research grant is made.
b. No funds shall be expended for the acquisition, construction or
renovation of capital facilities without specific prior written approval
by the committee.
c. Payments shall be made upon certified vouchers submitted to the
committee, prepared in a format satisfactory to the committee.
2. Copies of grant contracts shall be furnished to the [state racing
and wagering board] COMMISSION, and each of the funds named in section
seven hundred three of this article.
§ 122. Subdivision 2 of section 810 of the racing, pari-mutuel wager-
ing and breeding law is amended to read as follows:
2. Where the race meeting grounds or enclosure is situated in two
counties, one of which is wholly within a city, then:
a. If the tax is imposed by such city, the fiscal officers of such
city shall deposit the revenues of such taxes in a special fund and
shall pay to the county, not located in such city, within sixty days
after collection thereof, seventy-five [per centum] PERCENT of the
moneys in such special fund, for deposit in the general fund of such
county as hereinbefore provided, less the expenses for the collection of
such tax, and except that the sum of five thousand dollars shall be
retained at all times in such special fund for the purpose of making
refunds or any necessary adjustments. The fiscal officers of such city
shall pay the balance then remaining in such special fund into the
general fund of such city as hereinbefore provided[;].
b. If the tax is not imposed by such city, but is imposed by such
county, the fiscal officers of such county shall deposit the revenues of
such taxes in a special fund and shall pay to such city within sixty
days after collection thereof, twenty-five [per centum] PERCENT of the
moneys in such special fund, for deposit in the general fund of such
city as hereinbefore provided, less the expenses for the collection of
such tax and except that the sum of five thousand dollars shall be
retained at all times in such special fund for the purpose of making
refunds or any necessary adjustments. The fiscal officers of such county
shall pay the balance remaining in such special fund into the general
fund of such county as hereinbefore provided.
§ 123. Subdivision 1 and paragraphs a and c of subdivision 2 of
section 901 of the racing, pari-mutuel wagering and breeding law, as
amended by chapter 18 of the laws of 2008, are amended to read as
follows:
S. 7639 100
1. Notwithstanding the provisions of subdivision two of section five
hundred twenty-three of this chapter, the [board] COMMISSION shall
authorize regional off-track betting corporations to accept additional
wagers on multiple betting opportunities on races conducted by any fran-
chised corporation.
A franchised corporation may elect to offer such similar additional
daily double and quinella wagering opportunities. If such franchised
corporation offers two or more quinellas, as defined herein, the
provisions of section five hundred twenty-three of this chapter, as
modified by the provisions of subdivisions one, two and three of this
section, with respect to combined pools shall apply with respect to such
wagering opportunities. At any time such a franchised corporation does
not offer at least two quinellas, the provisions of this subdivision
with respect to separate authorizations for regional corporations shall
remain in effect with respect to such quinella wagers.
At any time such franchised corporation does not offer such an addi-
tional daily double, the provisions of this subdivision with respect to
separate authorizations for regional corporations shall remain in effect
with respect to such an additional daily double wager.
Whenever regional off-track betting corporations offer wagers pursuant
to this subdivision that are not combined in a common pool with similar
on-track wagers, the provisions of subdivision eight of section five
hundred twenty-three of this chapter shall apply to such wagers.
a. In addition to the authority granted under subdivision one of this
section, the [board] COMMISSION shall require, under conditions subject
to its approval, the franchised corporation to provide direct trans-
missions into selected regional off-track facilities of a current "live
call of the race," defined as the current positions of the horses at
specified places on the track during the race. The track operator itself
may perform the broadcast; or, provide appropriate space and facilities
to enable a single, alternative broadcast to be performed solely for the
use of regional off-track betting corporations, the expense of such
alternative broadcast to be borne by such regional corporations, at the
discretion of such regional corporations. In either case, all incre-
mental transmission costs are to be borne by such regional corporations.
c. The [board] COMMISSION shall approve the request of each such
regional off-track betting corporation to transmit the call of the race,
beginning January first, nineteen hundred seventy-nine, into an addi-
tional, like number of facilities as specified in paragraph b of this
subdivision and subject to the conditions in such paragraph. Provided,
however, that nothing shall prohibit such franchised corporation from
entering into agreements with such regional off-track betting corpo-
rations designating additional facilities within the regions of such
regional off-track betting corporations that may offer a "live call of
the race", except that no such transmissions are authorized into the
portion of the Western and Catskill regions in the thoroughbred special
betting district on those days that a thoroughbred track is conducting
racing in such special betting district.
§ 124. Subdivision 1 of section 902 of the racing, pari-mutuel wager-
ing and breeding law, as amended by section 2 of part JJ of chapter 59
of the laws of 2019, is amended to read as follows:
1. In order to assure the public's confidence and continue the high
degree of integrity in racing at the pari-mutuel betting tracks, equine
drug testing at race meetings shall be conducted by a state college or
at a land grant university within this state. The [gaming] commission
shall promulgate any rules and regulations necessary to implement the
S. 7639 101
provisions of this section, including administrative penalties of loss
of purse money, fines, or denial, suspension or revocation of a license
for racing drugged horses.
§ 125. Section 903 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 903. Simulcasting rights; Breeders' Cup Ltd. Notwithstanding any
inconsistent provision of this chapter and upon the approval of the
[board] COMMISSION, a franchised corporation is authorized to enter into
an agreement with the Breeders' Cup Ltd. for the disposition of all
revenues derived by such franchised corporation from and limited to the
live transmission of the audio/visual signals of and from pari-mutuel
wagering on races run by such franchised corporation to be known as the
"Breeders' Cup Event Day", in such manner as such franchised corporation
shall determine.
§ 126. Paragraphs a, b, c and e of subdivision 1 and subdivisions 2
and 2-a of section 904 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, paragraph a of subdi-
vision 1 as amended by section 5 of part BB of chapter 60 of the laws of
2016, are amended to read as follows:
a. The applicable state tax provided for in paragraphs a and b of
subdivision one of section five hundred twenty-seven of this chapter
shall be one-half percent for regular, multiple and exotic bets. Any
harness racing or association or corporation, or thoroughbred racing
corporation authorized pursuant to this section shall pay to the
[gaming] commission as a regulatory fee, which fee is hereby levied,
six-tenths of one percent of the total daily pari-mutuel pools.
b. The system of on and off-track betting shall result in the combina-
tion of all off-track wagers with on-track wagers so as to produce
common pari-mutuel betting pools. Provided, however, that the [board]
COMMISSION may authorize separate pari-mutuel wagering pools for any
corporation or association electing to accept such wagers, if [it] THE
COMMISSION determines that a common on and off-track pari-mutuel betting
pool, due to limitations in existing computer systems and information
transmission and receiving capacities cannot practically be accomplished
so as to maximize a reasonable number of separate wagering interests.
The resulting separate pools for regional off-track betting corporations
shall be subject to the limitations set forth in subdivision eight of
section five hundred twenty-three of this chapter.
c. Every association and corporation shall distribute all sums depos-
ited in any pari-mutuel pool to the holders of winning tickets therein,
providing such tickets be presented for payment before April first of
the year following the year of their purchase, less an amount [which]
THAT it shall retain at the same rate established by the sending track
plus the breaks.
e. For any corporation licensed pursuant to article two of this chap-
ter,[,] the applicable state tax shall be one percent of all wagers, the
amount payable to the thoroughbred breeding and development fund shall
be one-half of one percent and distribution to purses shall be fifty
percent of the amount retained by the track after all statutory and
contracted payments are made. No additional amounts may be withheld as
provided in section two hundred thirty-seven of this chapter.
2. The [state racing and wagering board] COMMISSION shall approve an
application from any racing corporation or association pursuant to
subdivision one of this section to accept on-track wagers and display
the simulcast of the Kentucky Derby or the Preakness provided, however,
S. 7639 102
that no application shall be approved by the board that it determines
may cause a reduction of the total number of racing events normally
conducted at the track on a daily basis.
2-a. The [state racing and wagering board] COMMISSION shall approve an
application from any racing corporation or association pursuant to
subdivision one of this section to accept on-track wagers on the Breed-
ers' Cup races, and, in instances where the application contemplates the
on-track display of simulcasts of and wagering on the entire card of
Breeders' Cup races, the [board] COMMISSION shall authorize, for that
day, a reduction of the total number of racing events normally conducted
at the track on a daily basis provided that the total number of live
racing events conducted at the track shall not be less than two.
§ 127. Subdivision 1, paragraphs a, b, c and e of subdivision 2 and
subdivision 3 of section 905 of the racing, pari-mutuel wagering and
breeding law, as amended by chapter 346 of the laws of 1990, subdivision
3 as amended by chapter 62 of the laws of 2003, and such section as
renumbered by chapter 18 of the laws of 2008, are amended to read as
follows:
1. The combination of New York wagers with wagers of the same type
made in other states or foreign countries is hereby authorized pursuant
to rules and regulations of the [state racing and wagering board]
COMMISSION so as to produce a common pari-mutuel pool for the calcu-
lation of odds and the determination of pay-outs from such pool, which
payout shall be, as far as may be consistent herewith, the same for all
winning bets of such type irrespective of whether a wager is placed in
this state or in another state or foreign country.
a. The [board] COMMISSION may authorize the combination of out-of-
state or foreign wagers on horse races in New York state with the same
type of wagers made in New York state at the site of the statewide
interface designated by the [board] COMMISSION for the combination of
on-track and off-track wagers made in New York state.
b. In this regard the [board] COMMISSION shall enact rules and regu-
lations including but not limited to insuring the following standards:
that the out-of-state or foreign wagering operator is duly authorized to
conduct such wagering by the laws of the applicable out-of-state or
foreign government and is of satisfactory ethical and financial repute;
that all such wagers are made in a format consistent with the format for
such wagers in New York state as to number of betting entries and the
combination of such entries into coupled entries and fields; that if the
laws of such other state or foreign country permit, that such wagers
shall be subject to the identical retention and breakage rates as
pertain at the site of the New York interface; that if the laws of such
other state or foreign country prescribe a retention or breakage rate
different from that in New York state it would not be contrary to the
public interest to compute odds and payouts for such out-of-state or
foreign wagers consistent with such law; that if it is consistent with
the public interest to compute odds and payouts for such out-of-state or
foreign wagers according to retention or breakage rates different from
those in New York state, that the site of the New York interface is
ready and able to carry out such computations consistent with the formu-
las hereinafter prescribed; that [regarding] IN REGARD TO foreign
wagers, that for computational purposes all foreign wagers to be
combined [will] SHALL be converted into American dollars at the prevail-
ing exchange rates established by a money center bank on the date of the
race (although breakage [will] SHALL be computed consistent with foreign
currency denominations); that other than the variations caused by
S. 7639 103
retention or breakage computations that all odds and pay-outs [will]
SHALL be computed and calculated, refunds or cancellations awarded or
allowed, and overpayments or underpayments corrected solely in accord-
ance with the applicable rules in New York state whose laws shall govern
all disputes pertinent thereto; that the means, methods and times of
transmission of wagering data necessary to the proper implementation of
this subdivision shall be as prescribed and approved by the [board]
COMMISSION; that all entities whose wagers are so combined have agreed
that the odds and final pay-offs [will] SHALL be computed in accordance
with the data available for computation at the site of the statewide
interface at the start of the race and that pay-off computations in
accordance therewith shall be final regardless of mistakes in trans-
mission or failures to transmit or receive all wagers and that the out-
of-state or foreign operators [will] SHALL be solely responsible for
claims asserted in that regard for wagers made through such operators;
that the out-of-state or foreign operator consents to be subject to
audit by the commissioner of taxation and finance or his OR HER designee
to verify the accuracy and completeness of all wagers required to be
transmitted by it hereunder; and such other rules and regulations as may
be deemed necessary and appropriate by the [board] COMMISSION.
c. If different retention or breakage rates than those prevailing at
the site of the New York interface are prescribed by the laws governing
such out-of-state or foreign betting operator, and the [board] COMMIS-
SION is satisfied that it would not be contrary to the public interest
to accept such wagers for combination with New York wagers, calculations
of the current odds and final pay-off prices shall be made as follows:
(i) All New York state and out-of-state and foreign wagers of the same
type shall be combined into single pools for calculation.
(ii) As many tentative payout prices as there are different retention
and breakage rates applicable (including the prevailing New York rate)
shall be calculated on the basis of returning the appropriate rate of
return, less breaks after imposition of each such rate of retention and
breaks.
(iii) To each such out-of-state or foreign operator shall be allocated
an amount sufficient for it to pay the appropriate pay-off to holders of
winning wagers placed with it together with the applicable retention
amount on its total wagers.
(iv) To each New York operator shall be allocated an amount sufficient
for it to pay the appropriate pay-off to holders of winning wagers
placed with it together with the applicable New York retention amount on
its total wagers.
(v) The total amount of the combined pool less the combined total of
all allocations as determined in subparagraphs (iii) and (iv) of this
paragraph shall be credited to a special breakage account. The amount in
such account giving appropriate weight to rates established for breakage
shall be allocated as breaks among all operators in the combined pool in
accordance with the rules and regulations of the [board] COMMISSION.
Should a minus pool eventuate in which the total combined pool is insuf-
ficient to reimburse each operator for the allocation due to it then the
allocation due to each such operator [will] SHALL be reduced as may be
appropriate and such operator [will] SHALL be responsible for satisfying
its liability from its own operating capital.
e. The operator of the site of the statewide interface [will] SHALL be
responsible for the actual collection or transmittal of funds in settle-
ment of the liabilities of all operators participating in the combined
pool.
S. 7639 104
3. Combining New York wagers on horse races conducted in other states
or foreign countries with wagers on such races made elsewhere.
a. The [board] COMMISSION may authorize the combination of wagers made
in New York state upon the outcome of out-of-state or foreign horse
races with wagers made upon such races elsewhere in accordance with
rules and regulations of the [board] COMMISSION which shall include but
not be limited to the following provisions:
(i) that if such combination is authorized that all New York state
operators must participate therein to assure uniform New York odds and
pay-outs;
(ii) that if the out-of-state or foreign computation is made on the
basis of different retention or breakage rates and (A) such out-of-state
or foreign laws do not permit New York wagers to be computed in accord-
ance with New York retention and breakage rates, that such variation
does not exceed twenty percent and [will] SHALL be allocated pro rata
among winning wagers in New York state and recipients of such retention
and breakage rates in New York state, or (B) if such out-of-state or
foreign laws do permit New York bets to be computed in accordance with
New York retention and breakage rates that such rates [will] SHALL be
applied and that the out-of-state or foreign operator doing such calcu-
lations is willing and able to properly perform such function;
(iii) that the out-of-state or foreign rules governing such wagers are
understandable to New York wagerers and in the best judgment of the
[board will] COMMISSION SHALL not deviate substantially from customary
and standard pari-mutuel practice in general;
(iv) that the New York operators are able to perform such transmission
and computer retrieval functions as may be required;
(v) that such combination will enhance the best interest of racing
generally; and
(vi) such other rules and regulations as may be deemed necessary and
appropriate by the [board] COMMISSION.
b. Nothing herein shall be construed to authorize or prescribe any act
contrary to federal law.
§ 128. Paragraph (b) of subdivision 2 of section 906 of the racing,
pari-mutuel wagering and breeding law, as added by chapter 2 of the laws
of 1995 and such section as renumbered by chapter 18 of the laws of
2008, is amended to read as follows:
(b) The [board] COMMISSION shall approve the rules and the payment of
prizes of a handicapping tournament. No operator of a handicapping tour-
nament may accept an entry fee for a tournament until the [board]
COMMISSION has approved the rules and the payment of prizes of a handi-
capping tournament.
§ 129. Section 910 of the racing, pari-mutuel wagering and breeding
law, as added by chapter 535 of the laws of 2007 and renumbered by chap-
ter 18 of the laws of 2008, is amended to read as follows:
§ 910. Reciprocity of licenses. All license denials, suspensions and
revocations imposed by the pertinent racing and gambling authorities of
other jurisdictions, including states, United States territories, and
Canadian provinces shall be recognized and enforced by the [board]
COMMISSION unless application is made for a hearing at which time the
applicant may show cause as to why such penalty should not be enforced
against the applicant in this state. If a hearing is granted, the
[board] COMMISSION may delay the imposition of the suspension or revoca-
tion of the license. The [board] COMMISSION must take reasonable steps
to make the licensee aware of the availability of a hearing for example
S. 7639 105
by listing it on the official website, in the license instructions or in
the racing program.
§ 130. Section 911 of the racing, pari-mutuel wagering and breeding
law, as added by section 1 of part II of chapter 58 of the laws of 2012,
is amended to read as follows:
§ 911. Advance deposit wagering. The [racing and wagering board]
COMMISSION shall study the impact of advance deposit wagering on horse
racing and pari-mutuel handle in New York state. The study shall include
but not be limited to the impact of out-of-state entities accepting
wagers from New York state residents, the annual dollar amount wagered
by New York state residents through out-of-state advance deposit wager-
ing accounts, the number of out-of-state advance deposit wagering
accounts held by New York state residents, and information concerning
New York state residents who utilize out-of-state advance deposit wager-
ing accounts, including, but not limited to, residency. The [racing and
wagering board] COMMISSION shall submit the study, together with any
recommendations, to the governor and legislature no later than September
fifteenth, two thousand twelve.
§ 131. The fifth undesignated paragraph of section 1000 of the racing,
pari-mutuel wagering and breeding law, as added by chapter 363 of the
laws of 1984, is amended to read as follows:
Accordingly, the legislature hereby authorizes experimentation with
the telecasts of horse races, on which pari-mutuel wagering shall be
permitted, under the regulation of the [state racing and wagering board]
COMMISSION in the manner and subject to the conditions provided in this
article.
§ 132. The opening paragraph and subdivisions h, i, j, k, l, m, n, o,
p, q, r, s and t of section 1001 of the racing, pari-mutuel wagering and
breeding law, as amended by chapter 174 of the laws of 2013, are amended
to read as follows:
As used in this article, IN ADDITION TO THE DEFINITIONS SET FORTH IN
SECTION ONE HUNDRED ONE OF THIS CHAPTER, the following terms shall have
the following meanings:
h. ["Commission" means the state gaming commission;
i.] "Branch office" means an establishment maintained and operated by
an off-track betting corporation, where off-track pari-mutuel betting on
horse races may be placed in accordance with the terms and conditions of
this chapter and rules and regulations issued pursuant thereto;
[j.] I. "Simulcast facility" means those facilities within the state
that are authorized pursuant to the provisions of this article to
display simulcasts for pari-mutuel wagering purposes;
[k.] J. "Off-track betting region" means those regions as defined in
section five hundred nineteen of this chapter;
[l.] K. "Simulcast theater" means a simulcast facility [which] THAT is
also a public entertainment and wagering facility, [and] which may
include any or all of the following: a [large screen] LARGE-SCREEN tele-
vision projection and display unit, a display system for odds, pools,
and payout prices, areas for viewing and seating, a food and beverage
facility, and any other convenience currently provided at racetracks and
not inconsistent with local zoning ordinances;
[m.] L. "Simulcast districts" means one or more of the following named
districts [comprised of] COMPRISING the counties within which pari-mutu-
el racing events are conducted as follows:
District 1 New York City, Suffolk, Nassau, and
Westchester counties
District 2 Sullivan county
S. 7639 106
District 3 Saratoga county
District 4 Oneida county
District 5 Erie, Genesee and Ontario counties
[n.] M. "Initial out-of-state thoroughbred track" means the track
commencing full-card simulcasting to New York prior to any other out-of-
state thoroughbred track after 1:00 PM on any calendar day.
[o.] N. "Second out-of-state thoroughbred track" means the track (or
subsequent track or tracks where otherwise authorized by this article)
conducting full-card simulcasting to New York after the race program
from the initial out-of-state thoroughbred track that has commenced
simulcasting on any calendar day.
[p.] O. "Mixed meeting" means a race meeting [which] THAT has a combi-
nation of thoroughbred, quarter horse, Appaloosa, paint, and/or Arabian
racing on the same race program.
[q.] P. "Account wagering" means a form of pari-mutuel wagering in
which a person establishes an account with an account wagering licensee
and subsequently communicates via telephone or other electronic media to
the account wagering licensee wagering instructions concerning the funds
in such person's account and wagers to be placed on the account owner's
behalf.
[r.] Q. "Account wagering licensee" means racing associations, and
corporations; franchised corporations, off-track betting corporations,
and [commission approved] COMMISSION-APPROVED multi-jurisdictional
account wagering providers that have been authorized by the commission
to offer account wagering.
[s.] R. "Dormant account" means an account wagering account held by an
account wagering licensee in which there has been no wagering activity
for three years.
[t.] S. "Multi-jurisdictional account wagering provider" means a busi-
ness entity domiciled in a jurisdiction, other than the state of New
York, that does not operate either a simulcast facility that is open to
the public within the state of New York or a licensed or franchised
racetrack within the state, but which is licensed by such other juris-
diction to offer pari-mutuel account wagering on races such provider
simulcasts and other races it offers in its wagering menu to persons
located in or out of the jurisdiction issuing such license.
§ 133. Subdivision 2 of section 1002 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 174 of the laws of 2013, is
amended to read as follows:
2. The commission shall annually submit reports on or before July
first following each year in which simulcasting and account wagering is
conducted to the director of the budget, the [chairman] CHAIR of the
senate finance committee and the [chairman] CHAIR of the assembly ways
and means committee evaluating the results of such simulcasts and
account wagering on the compatibility with the well-being of the horse
racing, breeding and pari-mutuel wagering industries in this state and
make any recommendations [it] THE COMMISSION deems appropriate. Such
reports may be submitted together with the reports required by subdivi-
sion two of section two hundred thirty-six and subparagraph (iii) of
paragraph a and subparagraph (i) of paragraph b of subdivision one of
section three hundred eighteen of this chapter.
§ 134. Paragraph (b) of subdivision 1 and the opening paragraph of
subdivision 2 of section 1003 of the racing, pari-mutuel wagering and
breeding law, as amended by chapter 174 of the laws of 2013, are amended
to read as follows:
S. 7639 107
(b) Any agreement authorizing in-home simulcasting pursuant to this
section shall be in writing, and upon written request, a copy shall be
provided to the representative horsemen's group of the racing associ-
ation or corporation that is party to said agreement. Such agreement
shall include a categorical statement of new and incremental expenses
directly related and attributable to the conduct of in-home simulcast-
ing. The representative horsemen's group may, within thirty days of
receiving the agreement, petition the [board] COMMISSION for a determi-
nation as to the appropriateness and reasonableness of any expenses
attributed by either the racing association or corporation or the off-
track betting corporation.
Before [it] THE COMMISSION may grant such license, the commission
shall review and approve a plan of operation submitted by such applicant
including, but not limited to the following information:
§ 135. Section 1004 of the racing, pari-mutuel wagering and breeding
law, as added by chapter 363 of the laws of 1984, is amended to read as
follows:
§ 1004. Suspension of simulcast licenses. 1. The [board] COMMISSION
may suspend any license authorizing the operation of a facility as a
simulcast facility, granted to an operator, if such operator fails to
conduct operations in accordance with the provisions of the plan of
operation, with the applicable rules of the [board] COMMISSION or with
the provisions of this article.
2. If the [board shall determine] COMMISSION DETERMINES to suspend any
license to operate a simulcast facility, [it] THE COMMISSION shall give
the operator involved notice of the time and plan for a hearing before
the [board] COMMISSION at which the [board] COMMISSION will hear such
operator in reference thereto. The [board] COMMISSION may continue such
hearing from time to time for the convenience of all parties. Any of the
parties affected by such hearing may be represented by counsel, and the
[board] COMMISSION may be represented by its own counsel or by the
attorney general. In the conduct of such hearing the [board] COMMISSION
shall not be bound by technical rules of evidence, but all evidence
offered before the [board] COMMISSION shall be reduced to writing, and
such evidence together with the exhibits, if any, and the findings of
the [board] COMMISSION shall be permanently preserved and shall consti-
tute the record of the [board] COMMISSION in such case. The [board]
COMMISSION may by order, if occasion shall require, refer to one or more
of its members or officers the duty of taking testimony in such matter
and to report thereon to the [board] COMMISSION, but no determination
shall be made thereon except by the [board] COMMISSION. Within thirty
days after such hearing, the [board] COMMISSION shall make a final
determination. If [it] THE COMMISSION determines that such license be
suspended, [it] THE COMMISSION shall make an order accordingly, and
shall cause such order to be entered on its minutes and a copy thereof
served on such operator. The action of the [board] COMMISSION in
suspending such license shall be reviewable in the supreme court in the
manner provided by the provisions of article seventy-eight of the civil
practice law and rules.
3. The [board] COMMISSION may immediately suspend any license to oper-
ate a simulcast facility for a reason set forth in subdivision one of
this section as of the delivery to the affected operator of the notice
of hearing required by subdivision two of this section pending final
determination of the [board] COMMISSION following the hearing. Such
emergency suspension shall be followed by a hearing as provided in
subdivision two OF THIS SECTION within twenty days following suspension.
S. 7639 108
§ 136. Section 1005 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 240 of the laws of 2010, is amended to read
as follows:
§ 1005. Power of the [board] COMMISSION to impose fines and penalties.
In addition to its power to suspend or revoke licenses granted by it,
the [state racing and wagering board] COMMISSION is hereby authorized
and empowered to impose monetary fines upon any corporation, association
or person participating in any way in simulcasts on which pari-mutuel
betting is conducted, other than as a patron, and whether licensed by
the [board] COMMISSION or not, for a violation of any provision of this
chapter or the rules promulgated by the [board] COMMISSION pursuant
thereto, not exceeding [twenty-five thousand dollars for each violation]
THE AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER.
The [board] COMMISSION is further authorized and empowered to impose
monetary fines, not exceeding [twenty-five thousand dollars for each
violation] THE AMOUNTS SET FORTH IN SECTION ONE HUNDRED SIXTEEN OF THIS
CHAPTER, upon any such corporation, association or person for a
violation of any order issued by the [board] COMMISSION pursuant to the
provisions of this chapter or the rules promulgated by the [board]
COMMISSION pursuant thereto, provided that a copy of such order shall
have been served, either personally or by registered mail, upon the
corporation, association or person to whom the same was directed, prior
to the occurrence of the violation for which such fine is imposed. Such
fines shall be paid into the state treasury. The action of the board in
imposing any monetary fine shall be reviewable in the supreme court in
the manner provided by and subject to the provisions of article seven-
ty-eight of the civil practice law and rules.
§ 137. Section 1006 of the racing, pari-mutuel wagering and breeding
law, as added by chapter 363 of the laws of 1984, is amended to read as
follows:
§ 1006. Refunds. 1. Moneys received by the [board] COMMISSION pursuant
to this article may be refunded to the party for whose account the same
were received on proof satisfactory to the [board] COMMISSION that:
a. [Such] SUCH moneys were in excess of the amount required by law;
b. [The] THE license for which application was made has been refused
by the [board] COMMISSION;
c. [Such] SUCH moneys were received as a fine and the [board] COMMIS-
SION has after review reduced or remitted the amount of such fine; OR
d. [Upon] UPON appeal, the court reduced or remitted the fine imposed.
2. Such refunds shall, upon approval by the [board] COMMISSION and
after audit by the comptroller, be paid from any moneys received pursu-
ant to this article.
§ 138. Subdivisions 1, 3 and 3-a and paragraph a of subdivision 5 of
section 1007 of the racing, pari-mutuel wagering and breeding law,
subdivision 1 as added by chapter 363 of the laws of 1984, the opening
paragraph of subdivision 1 as amended by chapter 18 of the laws of 2008,
paragraph b of subdivision 1 as amended by chapter 116 of the laws of
2001, subdivision 3 as amended by chapter 286 of the laws of 1985, para-
graph a of subdivision 3 as amended by chapter 281 of the laws of 1994,
paragraph b of subdivision 3 as amended by chapter 287 of the laws of
1985, paragraph d of subdivision 3 as amended by section 6 of part E of
chapter 56 of the laws of 1998, subparagraph (iii) of paragraph d of
subdivision 3 as amended by section 2 of part HH of chapter 59 of the
laws of 2019, paragraph e of subdivision 3 as added by chapter 286 of
the laws of 1985 and as relettered by chapter 346 of the laws of 1990,
paragraph f of subdivision 3 as added by chapter 503 of the laws of 1989
S. 7639 109
and as relettered by chapter 346 of the laws of 1990, paragraph g of
subdivision 3 as amended by section 6 of part BB of chapter 60 of the
laws of 2016, subdivision 3-a as added by chapter 488 of the laws of
1988, and paragraph a of subdivision 5 as amended by chapter 35 of the
laws of 1993, are amended to read as follows:
1. The [board] COMMISSION may authorize and approve one or more appli-
cations for a license by any harness racing association or corporation,
or thoroughbred racing corporation as provided in section one thousand
three of this article to provide for the simulcast of horse races for
wagering purposes from a track operated by any association or corpo-
ration [which is conducting] THAT CONDUCTS a pari-mutuel race meeting
under this chapter to a receiving track operated by any association or
corporation applying for such license except it shall not be applicable
when a [throughbred] THOROUGHBRED track in zone two [is simulcasting]
SIMULCASTS to a thoroughbred track in zone one, provided, however, that
no application shall be approved by the [board] COMMISSION:
a. [That it] THAT THE COMMISSION determines may cause any reduction of
the total number of racing events conducted on an annual or daily basis
at the receiving track; and
b. [Without] WITHOUT a written agreement between the receiving track
or corporation applying for such license and the sending track and a
letter of consent to such agreement from any racing association or
corporation [which] THAT operates another track within the simulcast
district in which the receiving track is located, and is conducting a
race meeting during the period for which simulcasting is proposed;
provided, however, that such consent shall not be withheld if the
receiving track is more than thirty miles from such other track. Such
period shall be defined as a twenty-four hour day from midnight to
midnight. For those tracks located in the city of New York or the county
of Westchester or Nassau, such period shall be limited to the same time
of day defined as afternoon against afternoon and evening against even-
ing.
3. Notwithstanding any inconsistent provisions of this chapter, the
sums retained by any receiving track from the total deposits in pools
wagered on simulcast racing events as provided in subdivision one of
this section shall be equal to the retained percentages applicable to
the sending track.
a. Of the sums retained by the receiving track from simulcast pools
the pari-mutuel tax shall be levied at the lower of the pari-mutuel tax
rate in effect on December thirty-first, nineteen hundred ninety-three
at the receiving track, plus ten [per centum] PERCENT of the breaks or
the following rates: two percent of simulcast pools generated by regular
wagers, two and one-half percent of simulcast pools generated by multi-
ple wagers, and seven percent of simulcast pools generated by exotic and
super exotic wagers, plus ten [per centum] PERCENT of the breaks.
b. Of the sums retained by the receiving track as provided in this
subdivision, [an amount equal to six-tenths of one per centum and, after
April first, nineteen hundred eighty-six,] an amount equal to one [per
centum] PERCENT of daily pools derived from bets on simulcasts of
harness races shall be paid to the agriculture and New York state breed-
ing and development fund, and an amount equal to one-half of one [per
centum] PERCENT of daily pools derived from bets on simulcasts of
running races shall be paid to the New York state thoroughbred breeding
and development fund.
S. 7639 110
c. Of the sums retained by the receiving track as provided in this
subdivision, an amount as determined through agreement between the send-
ing and receiving tracks shall be distributed to the sending track.
d. (i) Of the sums retained by a receiving track located in Westches-
ter County, two and one-half [per centum] PERCENT of total pools shall
be used exclusively for increasing purses to be awarded at races
conducted by such receiving track.
(ii) Of the sums retained by other receiving tracks while such tracks
are conducting a race meeting, fifty [per centum] PERCENT of the net
amounts remaining after payments required in this section and fifty [per
centum] PERCENT of the net amounts derived from all simulcasting author-
ized by chapter two hundred eighty-one of the laws of nineteen hundred
ninety-four and other such direct expenses as [is] ARE necessary to
provide the [track to track] TRACK-TO-TRACK program but excluding charg-
es for depreciation, administration overhead expenses, taxes not direct-
ly related to such program and management fees shall be used exclusively
for increasing purses awarded at races conducted by such receiving
track. Nothing in this section shall preclude the right of a horsemen's
organization representing owners and trainers at the receiving track
from entering into an agreement with such receiving track to provide for
an audit or other such verification of such net amounts available for
purses.
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand twenty, the amount used exclusively for purses
to be awarded at races conducted by such receiving track shall be
computed as follows: of the sums so retained, two and one-half percent
of the total pools. Such amount shall be increased or decreased in the
amount of fifty percent of the difference in total commissions deter-
mined by comparing the total commissions available after July twenty-
first, nineteen hundred ninety-five to the total commissions that would
have been available to such track prior to July twenty-first, nineteen
hundred ninety-five.
e. If an admission fee is charged at a receiving track, such fee shall
be subject to state and local admission taxes at the rate applicable to
the receiving track pursuant to this chapter.
f. The payment of the state tax imposed by this section shall be made
to the commissioner of taxation and finance at such regular intervals as
the commissioner of taxation and finance may require, and shall be
accompanied by a report, under oath, [which] THAT sets forth such infor-
mation as the commissioner of taxation and finance may require. A penal-
ty of five [per centum] PERCENT and interest at the rate of one [per
centum] PERCENT per month from the date the report is required to be
filed to the date of payment of the tax shall be payable in case any tax
imposed by this section is not paid when due. If the commissioner of
taxation and finance determines that any moneys received under this
paragraph were paid in error, such commissioner may cause the same to be
refunded without interest out of any moneys collected thereunder,
provided an application therefor is filed with [the] SUCH commissioner
within one year from the time the erroneous payment was made. Such
taxes, interest and penalties when collected, after the deduction of
refunds of taxes erroneously paid, shall be paid by the commissioner of
taxation and finance into the general fund of the state treasury.
g. Any harness racing or association or corporation, or thoroughbred
racing corporation authorized pursuant to this section shall pay to the
S. 7639 111
[gaming] commission as a regulatory fee, which fee is hereby levied,
six-tenths of one percent of the total daily pari-mutuel pools.
3-a. Notwithstanding any inconsistent provision of this chapter, of
the sums received by a sending track, a portion shall be distributed to
purses in accordance with a written agreement between the racing associ-
ation or corporation operating such track and the horsemen's organiza-
tion representing owners and trainers at such track, as determined by
the [board] COMMISSION. In the absence of such an agreement, fifty [per
centum] PERCENT of the sums received by a sending track shall be
distributed to purses.
a. that is conducting a race meeting of the same type of racing during
the same time that racing is being conducted at the sending track,
provided, however, that the [board] COMMISSION may establish conditions
to authorize the acceptance of wagers of a sending track during a race
meeting of the same type of racing as special events in the best inter-
ests of racing or as other events that the [board] COMMISSION determines
to be in the best interests of racing provided, however, that the
conduct of such other events shall be subject to an agreement between
the receiving track and the horsemen's organization representing owners
and trainers at such track;
§ 139. Subdivision 1, paragraph c of subdivision 2, paragraph b of
subdivision 3 and subdivisions 4 and 5 of section 1008 of the racing,
pari-mutuel wagering and breeding law, subdivision 1 and paragraph c of
subdivision 2 as amended by chapter 18 of the laws of 2008, paragraph b
of subdivision 3 as amended by section 7 of part BB of chapter 60 of the
laws of 2016, subdivision 4 as amended and subdivision 5 as added by
chapter 346 of the laws of 1990 and paragraph a of subdivision 4 as
amended by chapter 445 of the laws of 1997, are amended to read as
follows:
1. The [board] COMMISSION may in accordance with the provisions of
section one thousand three of this article and section five hundred
twenty-three of this chapter authorize and approve an application for
licenses submitted by any off-track betting corporation to display the
simulcasts of racing from any thoroughbred or harness racing association
or corporation located in the state.
c. (i) Except as provided in section one thousand thirteen of this
[chapter] ARTICLE, if such sending track is not a thoroughbred track in
the Catskill region conducting a mixed meeting, letters of consent to
such agreement by the regional track or tracks conducting a meeting or
meetings of the same type of racing during the period for which simul-
casting is proposed. For purposes of this article, a track first
licensed to conduct pari-mutuel racing after January first, nineteen
hundred eighty-five, shall not be considered a regional track for
purposes of applicable letters of consent as required in this section
and section one thousand nine of this [chapter] ARTICLE. Such period
shall be defined as a twenty-four hour day from midnight to midnight.
For those tracks located in the city of New York or the counties of
Westchester or Nassau, such period shall be limited to the same time of
day, defined as afternoon against afternoon, twilight against twilight
and evening against evening, the hours for which shall be as further
specified by the [board] COMMISSION.
(ii) For any simulcasting facility located within an area of a circle
whose radius is forty miles, the center of which shall be measured from
a regional track, and as provided in section one thousand thirteen of
this [chapter] ARTICLE, the [board] COMMISSION shall not approve such
application unless such regional track, as described in subparagraph (i)
S. 7639 112
OF THIS PARAGRAPH, has given its written authorization, provided howev-
er, that between thirty-one and forty miles such approval shall not be
unreasonably withheld. Such approval shall not be required if the simul-
casting facility is located without the forty mile radius or if the
sending track is a thoroughbred track in the Catskill region conducting
a mixed meeting. Such written authorization shall not be required nor
shall the provisions of section five hundred twenty-three of this chap-
ter apply to those races that such regional track may elect to receive
as a simulcast race during its regularly scheduled race meeting.
b. Of the sums received by the sending track, fifty percent shall be
distributed to purses in addition to moneys distributed pursuant to
section five hundred twenty-seven of this chapter. The off-track betting
corporation shall pay to the [gaming] commission as a regulatory fee,
which fee is hereby levied, six-tenths of one percent of the total daily
pools.
4. a. Notwithstanding any other provision of law to the contrary, the
[board] COMMISSION may authorize a regional off-track betting corpo-
ration to amend its plan of operation to provide for the sale of food
and non-alcoholic beverages within its simulcasting facilities. For such
facilities when facilities of a hotel or restaurant as defined in
section three of the alcoholic beverage control law are [utilized] USED,
and table service for at least twenty-four persons is provided, the
[board] COMMISSION may, in its discretion, authorize a regional off-
track betting corporation to amend its plan of operation to provide for
the sale of beer, wine and liquor, in accordance with all applicable
state and local licensing requirements. The [board] COMMISSION shall
promulgate rules and regulations to carry out the provisions of this
subdivision with the intent that such sale of food, alcoholic and non-
alcoholic beverages shall be in accordance with appropriate health and
sanitary codes, and shall not include sales on credit except such sales
[utilizing] USING a [third party] THIRD-PARTY credit card. With respect
to the sale of beer, wine and liquor, said rules and regulations shall
provide requirements for seating capacity and the minimum number of
tables, which in no event shall be less than six.
b. (i) Regional off-track betting corporations shall have the option
of charging an admission fee to simulcasting facilities authorized to
sell food, alcoholic or non-alcoholic beverages pursuant to paragraph a
of this subdivision. The amount of such fee shall be subject to the
approval of the [board] COMMISSION.
(ii) Such fee shall be subject to a state admission tax imposed at the
rate of four [per centum] PERCENT of the admission fee. The tax shall be
administered by the commissioner of taxation and finance and the
provisions of section three hundred six of this chapter relating to the
administration and collection of the tax imposed by such section shall
apply to the tax imposed by this subparagraph, in the same manner and
with the same force and effect as if the language of such provisions had
been incorporated in full into this subparagraph and expressly referred
to the tax imposed by this subparagraph, except to the extent that any
such provision is either inconsistent with a provision of this subpara-
graph or is not relevant to this subparagraph.
(iii) Any county (except a county wholly within a city) or city, or
both, in which such simulcasting facility is located, is hereby author-
ized and empowered to adopt and amend local laws imposing a tax on such
admission fee at a rate not to exceed fifteen [per centum] PERCENT of
the admission fee. The provisions of article eight of this chapter
relating to the administration and collection of the taxes authorized to
S. 7639 113
be imposed by such article (including the provisions relating to judi-
cial review) shall apply to a tax imposed pursuant to the authority of
this subparagraph, in the same manner and with the same force and effect
as if the language of such provisions had been incorporated in full into
this subparagraph and expressly referred to a tax authorized to be
imposed pursuant to this subparagraph, except to the extent that any
such provision is either inconsistent with a provision of this subpara-
graph or is not relevant to this subparagraph.
5. a. As a condition to receiving simulcasts in any branch office from
any sending track a regional off-track betting corporation located in a
city with a population of one million shall simulcast the thoroughbred
and quarter horse races of a thoroughbred track located in the Catskill
region conducting a mixed meeting in all such branches that will [be
receiving] RECEIVE the simulcasts of any other thoroughbred or harness
horse races on any day that such thoroughbred track in the Catskill
region may be conducting a mixed meeting and offers such simulcasts of
its races to such corporation, provided, however, that the costs associ-
ated with the transmission and receipt of the simulcast signal of such
thoroughbred track located in the Catskill region shall be borne by such
track.
b. Any branch office that receives such simulcast signal for forty-
five days may cease receiving such signal if the off-track betting oper-
ator justifies to the [board] COMMISSION that the opening of such branch
office has sustained economic loss during such forty-five day period.
Provided, however, the track and off-track betting operator may waiver
this provision by contract.
§ 140. Subdivisions 1, 2, 2-a, paragraph b of subdivision 3 and subdi-
visions 4, 4-a, 5 and 6 of section 1009 of the racing, pari-mutuel
wagering and breeding law, as added by chapter 363 of the laws of 1984,
subdivisions 1, 2, 5 and paragraph b of subdivision 3 as amended by
chapter 18 of the laws of 2008, subdivision 2-a as added by chapter 286
of the laws of 1985, paragraph (a) of subdivision 2-a as amended by
chapter 626 of the laws of 1986, paragraph (c) of subdivision 2-a as
added by section 2 of part GG of chapter 59 of the laws of 2019, para-
graph a of subdivision 4 as amended by section 3 of part OO of chapter
59 of the laws of 2006, paragraph b of subdivision 4 as amended by chap-
ter 261 and subdivision 4-a as added by chapter 488 of the laws of 1988,
paragraph c of subdivision 4 as added by chapter 503 of the laws of
1989, paragraph d of subdivision 4 as amended by section 8 of part BB of
chapter 60 of the laws of 2016, are amended to read as follows:
1. The [board] COMMISSION may authorize and approve eight licenses,
except that any approval of a license for a franchised corporation shall
not decrease the number of licenses available, as of July first, nine-
teen hundred ninety to any other eligible operator under subdivision two
of this section, for the operation of simulcast theaters as defined in
section one thousand one of this article. One such license shall only be
approved for the regional off-track betting corporation defined by para-
graph b of subdivision one of section five hundred nineteen of this
chapter.
2. Such a simulcast theater, pursuant to a license issued in accord-
ance with the provisions of this section and section one thousand three
of this article may be owned or leased, and operated, (a) by one or more
racing associations or corporations; (b) by the regional off-track
betting corporation of the region where such simulcast theater facility
is to be located; (c) jointly by one or more racing associations or
corporations and the regional off-track betting corporation of the
S. 7639 114
region where such simulcast theater facility is to be located; or (d) by
a franchised corporation; provided, however, that for the purposes of
paragraph (a) of subdivision two-a of this section, an entity authorized
by paragraph (b) or (c) of this subdivision to own, lease or operate a
simulcast theater may, pursuant to a competitive bidding procedure
carried out in accordance with rules and regulations issued by the
[board] COMMISSION, select another person, firm or corporation to oper-
ate or jointly own or lease such facility and enter into a written
agreement with such person, firm or corporation provided that such party
shall be subject to the licensing requirements of the [board]
COMMISSION.
2-a. Notwithstanding the provisions of subdivision one of this
section, the [board] COMMISSION may authorize one or more licenses, as
provided in paragraphs (b) and (c) of subdivision two of this section,
to enter into a written agreement with another person, firm or corpo-
ration to jointly operate or lease such facility for the operation of
simulcast at entertainment theaters as special demonstration projects
for purposes of stimulating economic development, employment opportu-
nities and state and local revenues. Such demonstration projects shall
be licensed in accordance with all applicable laws, rules and regu-
lations of this article.
(a) In Sullivan, Greene and Ulster counties the [board] COMMISSION
shall determine the number of such projects to be located in privately
owned hotels in such counties for the exclusive use of the hotel guests.
(b) The [board] COMMISSION may additionally authorize one special
demonstration project within the city of New York.
(c) The [board] COMMISSION may authorize a special demonstration
project to be located in any facility licensed pursuant to article thir-
teen of this chapter in Schenectady county. Notwithstanding the
provisions of paragraph a of subdivision five of this section, an admis-
sion fee shall not be required for a demonstration project authorized in
this paragraph. [Provided however, on] ON any day when a regional
harness track conducts a live race meeting, a demonstration facility
within that region shall predominantly display the live video of such
regional harness track.
The regional off-track betting corporations operating such demon-
stration facilities within New York city may elect to apply the
provisions of section five hundred thirty-two of this chapter in lieu of
any admission charges.
b. Letters of consent to the application from any regional track
[which] THAT is not a party to the operation of the proposed theater
unless such track is located more than forty miles from the proposed
simulcast theater; and a copy of any agreement between the applicant and
such corporation pursuant to which such consent has been given, subject
to the provision of subdivision two of section one thousand seven of
this article. Notwithstanding the foregoing, the Nassau region may apply
to locate one simulcast theater within Nassau County without a letter of
consent from the operator of the regional track provided the proposed
simulcast theater is not within fifteen miles of the closest border of
any racing facility operated by a franchised corporation.
4. Notwithstanding any inconsistent provisions of this chapter, the
sums retained by any associations or corporations from the total depos-
its in pools wagered on simulcast racing events at a simulcast theater
as provided in subdivision one of this section shall be equal to the
rates of retained percentage applicable to the sending track.
S. 7639 115
a. Of the sums retained by the operator as provided in this subdivi-
sion, the pari-mutuel tax shall be levied at the following rates plus
twenty [per centum] PERCENT of the breaks: from wagers on thoroughbred
races, eight-tenths of one [per centum] PERCENT of pools generated from
regular wagers; one and three-tenths [per centum] PERCENT of pools
generated from multiple wagers; two and eight-tenths [per centum]
PERCENT of pools generated from exotic wagers; and three and one-half
[per centum] PERCENT of pools generated from super exotic wagers; and
from wagers on harness races, one-half of one [per centum] PERCENT of
pools generated from regular wagers; one [per centum] PERCENT of pools
generated from multiple wagers; two and one-half [per centum] PERCENT of
pools generated from exotic wagers and three [per centum] PERCENT of
pools generated from super exotic wagers[;].
b. Of the sums retained by the operator as provided in this subdivi-
sion, an amount equal to one [per centum] PERCENT of daily pools derived
from bets on simulcasts of harness races shall be paid to the agricul-
ture and New York state horse breeding development fund, and an amount
equal to one-half of one [per centum] PERCENT of daily pools derived
from bets on simulcasts of running races shall be paid to the New York
state thoroughbred breeding and development fund.
c. The payment of the state tax imposed by this section shall be made
to the commissioner of taxation and finance at such regular intervals as
the commissioner of taxation and finance may require, and shall be
accompanied by a report, under oath, [which] THAT sets forth such infor-
mation as the commissioner of taxation and finance may require. A penal-
ty of five [per centum] PERCENT and interest at the rate of one [per
centum] PERCENT per month from the date the report is required to be
filed to the date of payment of the tax shall be payable in case any tax
imposed by this section is not paid when due. If the commissioner of
taxation and finance determines that any moneys received under this
paragraph were paid in error, the commissioner may cause the same to be
refunded without interest out of any moneys collected thereunder,
provided an application therefor is filed with the commissioner within
one year from the time the erroneous payment was made. Such taxes,
interest and penalties when collected, after the deduction of refunds of
taxes erroneously paid, shall be paid by the commissioner of taxation
and finance into the general fund of the state treasury.
d. The operator shall pay to the [gaming] commission as a regulatory
fee, which fee is hereby levied, six-tenths of one percent of the total
daily pools.
4-a. Notwithstanding any inconsistent provision of this chapter, of
the sums received by a sending track, a portion shall be distributed to
purses in accordance with a written agreement between the racing associ-
ation or corporation operating such track and the horsemen's organiza-
tion representing owners and trainers at such track, as determined by
the [board] COMMISSION. In the absence of such an agreement, fifty [per
centum] PERCENT of the sums received by a sending track shall be
distributed to purses.
5. a. An admission fee to simulcast theaters shall be charged and the
amount of such admission fee shall be subject to the approval of the
[racing and wagering board] COMMISSION.
b. Such admission fee shall be subject to a state admission tax
imposed at the rate of four [per centum] PERCENT of the admission fee.
The tax shall be administered by the commissioner of taxation and
finance and the provisions of section three hundred six of this chapter
relating to the administration and collection of the tax imposed by such
S. 7639 116
section shall apply to the tax imposed by this paragraph, in the same
manner and with the same force and effect as if the language of such
provisions had been incorporated in full into this paragraph and had
expressly referred to the tax imposed by this paragraph, except to the
extent that any such provision is either inconsistent with a provision
of this paragraph or is not relevant to this paragraph.
c. Any county (except a county wholly within a city) or city, or both,
in which a simulcast theater is located, is hereby authorized and
empowered to adopt and amend local laws imposing a tax on such admission
fee at a rate not to exceed fifteen [per centum] PERCENT of the admis-
sion fee. The provisions of article eight of this chapter relating to
the administration and collection of the taxes authorized to be imposed
by such article (including the provisions relating to judicial review)
shall apply to a tax imposed pursuant to the authority of this para-
graph, in the same manner and with the same force and effect as if the
language of such provisions had been incorporated in full into this
paragraph and had expressly referred to a tax authorized to be imposed
pursuant to this paragraph, except to the extent that any such provision
is either inconsistent with a provision of this paragraph or is not
relevant to this paragraph.
6. The size, location and operation of a simulcast theater shall be
subject to local zoning ordinances and the approval of the [racing and
wagering board] COMMISSION.
§ 141. Subdivision 1 of section 1010 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 346 of the laws of 1990, is
amended to read as follows:
1. Plans for operation of simulcast facilities shall include provision
for job security for employees of racetracks and off-track betting
corporations within the district where the facility is located, compat-
ible with and in furtherance of the objectives of this article and
subject to the approval of the [state racing and wagering board] COMMIS-
SION. Job security agreements that have been or may be concluded from
time to time after July first, nineteen hundred seventy-three between
employee organizations and the operators of simulcast facilities shall
be subject to the approval of the [board] COMMISSION and when approved
shall be deemed a part of the plan of operation of such simulcast facil-
ity.
§ 142. Section 1011 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 1011. Certain credit to off-track betting corporations. a. During
the period that a franchised corporation is simulcasting from a facility
operated by such franchised corporation in the second zone as defined in
section two hundred forty-seven of this chapter to a facility operated
by such franchised corporation pursuant to section one thousand seven of
this [chapter] ARTICLE, any off-track betting corporation operating in a
county in which such association maintains a racetrack shall receive a
credit of twenty-five [per centum] PERCENT of the state taxes due pursu-
ant to section five hundred twenty-seven of this chapter on wagers
placed on races conducted by such association, provided that such corpo-
ration has entered into an agreement with the employee organization
representing the employees of such corporation in which it has agreed
not to reduce its workforce as a result of such simulcasting.
b. During the days that a franchised corporation is simulcasting from
a racetrack facility operated by such franchised corporation and located
in the first zone to a racetrack facility operated by such franchised
S. 7639 117
corporation located wholly within a city of one million or more, one
[per centum] PERCENT of the total wagers placed at such receiving facil-
ity shall be paid to such city.
c. During the days that a franchised corporation is simulcasting from
a facility located wholly within a city in the first zone to a racetrack
facility operated by such franchised corporation located partially with-
in a city with a population in excess of one million and partially with-
in a county, one-half [per centum] PERCENT of the total wagers placed at
such receiving facility shall be paid to such city and one-half [per
centum] PERCENT of such wagers shall be paid to such county.
§ 143. Subdivision 6 of section 1012-a of the racing, pari-mutuel
wagering and breeding law, as added by chapter 174 of the laws of 2013,
is amended to read as follows:
6. multi-jurisdictional account wagering providers shall pay a market
origin fee equal to five [per centum] PERCENT on each wager accepted
from New York residents. Multi-jurisdictional account wagering providers
shall make the required payments to the market origin account on or
before the fifth business day of each month and such required payments
shall cover payments due for the period of the preceding calendar month;
provided, however, that such payments required to be made on April
fifteenth shall be accompanied by a report under oath, showing the total
of all such payments, together with such other information as the
commission may require. A penalty of five [per centum] PERCENT and
interest at the rate of one [per centum] PERCENT per month from the date
the report is required to be filed to the date the payment shall be
payable in case any payments required by this subdivision are NOT paid
when due. If the commission determines that any moneys received under
this subdivision were paid in error, the commission may cause the same
to be refunded without interest out of any moneys collected thereunder,
provided an application therefor is filed with the commission within one
year from the time the erroneous payment was made. The commission shall
pay into the racing regulation account, under the joint custody of the
comptroller and the commission, the total amount of the fee collected
pursuant to this section.
§ 144. The opening paragraph and paragraphs (c), (d) and (j) of subdi-
vision 1 and subdivisions 4, 5 and 7 of section 1013 of the racing,
pari-mutuel wagering and breeding law, as added by chapter 346 of the
laws of 1990, paragraph (c) of subdivision 1 as amended by chapter 524
of the laws of 1991, are amended to read as follows:
Whenever under this article a written agreement is required to be
obtained from a sending regional track or tracks located within simul-
cast district one or two for the purpose of simulcasting, and it is
claimed by the applicant for such license for simulcasting that such
written agreement has been unreasonably refused, declined or denied, or
offered for consideration that is unreasonable within parameters estab-
lished by market conditions, geographical location or historical experi-
ence, the terms and conditions and consideration to be paid for such
proposed simulcasting shall be determined by binding arbitration in
accordance with the procedures set forth herein and by regulations
promulgated by the [board] COMMISSION. Failure to agree to such binding
arbitration by the sending track to simulcast within the simulcast
district shall be deemed as authorization for such licensee or proposed
licensee to enter into an agreement to receive such simulcast signal
from another track or tracks within this state, notwithstanding the
provisions of section five hundred twenty-three of this chapter.
S. 7639 118
(c) Where the applicant for simulcasting thereafter maintains that the
agreement sought has been unreasonably refused or denied or that the
proposal of the party or parties from whom the agreement is required is
unreasonable or not economically feasible so as to permit the conduct of
simulcasting, [it] THE APPLICANT shall notify the [racing and wagering
board] COMMISSION, which, within fifteen days thereafter, shall notify
the track that binding arbitration procedures will be initiated. Such
notification shall be delivered to the track by certified mail, return
receipt requested. (i) The [board] COMMISSION shall arbitrate all
disputes arbitrable pursuant to this section unless either party
objects, in such event the [board] COMMISSION shall provide and desig-
nate to the parties a list of three or more independent arbitrators from
a panel of such arbitrators maintained by it, having experience in
dispute resolution and the economics of the pari-mutuel racing industry.
In order to sustain the continuity of the simulcast programs during the
period of such arbitration, the terms and conditions of any current or
pre-existing agreement shall remain in full force and effect during the
period of such arbitration. (ii) Within thirty days of such notifica-
tion, the track may refuse to enter into any such arbitration procedures
by notifying the [board] COMMISSION. Upon such notification, the
[board] COMMISSION shall authorize the applicant to enter into an agree-
ment to receive a simulcast signal from another track within the state,
notwithstanding any other provision of law to the contrary.
(d) The provisions for binding arbitration contained in this section
shall be applicable to any proposed agreement with such other regional
track. In the event a simulcast agreement has been refused by such other
regional track, notwithstanding the provisions of section five hundred
twenty-three of this chapter, the [board] COMMISSION shall authorize the
applicant to enter into an agreement to receive a simulcast signal for
purposes of pari-mutuel wagering from any other track within this state
conducting the same type of racing that was refused by the regional
tracks.
(j) The arbitrator, if not the [board] COMMISSION, shall notify the
[board] COMMISSION of its final award which shall be enforced by the
[board] COMMISSION pursuant to this chapter.
4. Nothing herein shall be construed to dispense with any approval
required for the licensing of simulcasting by the [board] COMMISSION
under this article as any other provision of law.
5. Nothing herein shall preclude all the parties to any such dispute
from entering into a written agreement providing for the submission and
resolution of any such dispute by any other form of final and binding
arbitration, under any agreed upon procedure, to any arbitration panel,
forum or arbitrator within thirty days after notice of the designation
of the list of arbitrators herein by the [board] COMMISSION.
7. The arbitrator appointed pursuant to subdivision one of this
section shall be entitled to receive a fee for his or her services to be
paid equally by the parties. In no event shall the [board] COMMISSION
charge a fee to arbitrate disputes.
§ 145. The opening paragraph, paragraphs d and f, subparagraph 1 of
paragraph g, item (i) of subparagraph 2 of paragraph h, paragraph i,
subparagraph 1 of paragraph j and the opening paragraph of subparagraph
2 of paragraph k of subdivision 1 of section 1014 of the racing, pari-
mutuel wagering and breeding law, as amended by chapter 18 of the laws
of 2008, the opening paragraph of subdivision 1, as amended by section 3
of part HH of chapter 59 of the laws of 2019, subparagraph (iv) of para-
S. 7639 119
graph i of subdivision 1 as added by section 9 of part BB of chapter 60
of the laws of 2016, are amended to read as follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand twenty and on any day regardless of whether or
not a franchised corporation is conducting a race meeting in Saratoga
county at Saratoga thoroughbred racetrack after June thirtieth, two
thousand twenty. On any day on which a franchised corporation has not
scheduled a racing program but a thoroughbred racing corporation located
within the state is conducting racing, [every] EACH off-track betting
corporation branch office and [every] EACH simulcasting facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative horsemen's
organization, as approved by the commission), one thousand eight, or one
thousand nine of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred tracks located in
another state or foreign country subject to the following provisions:
d. Each off-track betting corporation shall determine the average
daily handle on the in-state thoroughbred corporation, the average daily
handle from out-of-state tracks and the average total daily payment made
to the in-state thoroughbred track on each day from April first, nine-
teen hundred ninety-three through December thirty-first, nineteen
hundred ninety-three on which the off-track betting corporation accepted
wagers on races conducted at such track and races conducted on an out-
of-state track on a day on which no scheduled races were conducted by a
franchised corporation. This calculation shall be provided to the
[racing and wagering board] COMMISSION and the chief executive officers
of the in-state thoroughbred track and the horsemen's organization. If
there is a dispute as to the amount of such calculations, written
documentation from the off-track betting corporation and the track,
shall be supplied to the [racing and wagering board] COMMISSION which
shall make a determination of the correct amounts, which determination
shall be final and binding on all parties.
f. The amount shall be distributed in accordance with the provisions
of this section. The [board] COMMISSION shall determine the amount of
and dates of such payments, which dates shall, as far as practicable,
reflect the payments made to such track during the comparable period of
nineteen hundred ninety-three.
(1) At the conclusion of the thoroughbred track corporation's nineteen
hundred ninety-four racing season or as shortly thereafter as possible
but not later than December twentieth, nineteen hundred ninety-four, the
off-track betting corporations and the [racing and wagering board]
COMMISSION shall determine the average daily handle for the in-state
thoroughbred racing corporation and the average daily handle for races
conducted at out-of-state or out-of-country tracks. If average daily
handle for any off-track betting corporation exceeds by ten percent the
average daily handle as calculated in paragraph d of this subdivision,
such off-track betting corporation shall pay to the in-state thorough-
bred racing corporation an amount calculated by multiplying the average
daily handle in excess of one hundred ten percent of the average daily
handle of nineteen hundred ninety-three by the effective commission rate
paid by such corporation in nineteen hundred ninety-three. Such calcu-
lation shall be computed separately for handle on in-state tracks and
handle on out-of-state tracks.
S. 7639 120
(i) In addition, licensed harness tracks shall receive one and one-
half [per centum] PERCENT on total handle on races conducted at an out-
of-state or out-of-country thoroughbred track provided such harness
track is neither accepting wagers nor displaying the signal from an
out-of-state track.
i. Any facility authorized to accept wagers on out-of-state tracks
shall distribute all sums deposited in any pari-mutuel pool to the hold-
ers of winning tickets therein, provided such tickets are presented for
payment prior to April first of the year following the year of their
purchase less eighteen [per centum] PERCENT of the total deposits in
pools resulting from regular bets, less twenty-one [per centum] PERCENT
of the total deposits in pools resulting from multiple bets, less twen-
ty-six [per centum] PERCENT of the total deposits in pools resulting
from exotic bets, less thirty-six [per centum] PERCENT of the total
deposits in pools resulting from super exotic bets plus the breaks as
defined in section two hundred thirty-six of this chapter except that
the retention rates and breaks shall be as prescribed by another state
or country if such wagers are combined with those in the other state or
country pursuant to section nine hundred five of this chapter.
[(i)] (1) Of the sum so retained, the applicable tax rate shall be one
and one-half percent of all such wagers plus fifty percent of the
breaks; provided, however, fifty percent of the breaks accruing from
off-track betting corporations licensed in accordance with section one
thousand eight of this article and from simulcast theaters licensed in
accordance with section one thousand nine of this article, shall be paid
to the agriculture and New York state horse breeding and development
fund and to the thoroughbred breeding and development fund, the total of
such payments to be apportioned fifty [per centum] PERCENT to each such
fund.
[(ii)] (2) Of the sums so retained, one-half of one [per centum]
PERCENT of all wagers shall be paid to the New York state thoroughbred
breeding and development fund, except that of the sums so retained on
such wagers at licensed harness tracks, one-half of one [per centum]
PERCENT shall be paid to the agricultural and New York State horse
breeding and development fund.
[(iii)] (3) Of the sum so retained, two percent of all wagers shall be
paid to a franchised corporation to be used exclusively for the purpose
of increasing purses, including stakes, premiums and prizes, provided
further that such amount shall not exceed the amount paid to such non-
profit racing association in nineteen hundred ninety-three from wagers
placed on out-of-state tracks on a day when no racing was being
conducted by the non-profit racing association and a racing program was
being conducted by a thoroughbred racing corporation located in the
state. The excess, if any, shall be paid to a thoroughbred racing corpo-
ration located in the state until August thirty-first, nineteen hundred
ninety-five and on and after July nineteen, nineteen hundred ninety-six
to be used exclusively for the purpose of increasing purses, including
stakes, premiums and prizes.
[(iv)] (4) Any thoroughbred racing corporation or harness racing asso-
ciation or corporation or off-track betting corporation authorized
pursuant to this section shall pay to the [gaming] commission as a regu-
latory fee, which fee is hereby levied, six-tenths of one percent of all
wagering pools.
(1) All wagers authorized by this section shall be combined so as to
produce common pari-mutuel betting pools for the calculation of odds and
the determination of payouts from such pools, which payouts shall be
S. 7639 121
made pursuant to the rules of the [board] COMMISSION. Every location
authorized to accept wagers or display simulcasting pursuant to this
section shall be subject to all appropriate provisions of this chapter.
upon application of any facility licensed in accordance with sections
one thousand seven and one thousand nine of this article, the [board]
COMMISSION shall authorize the imposition of a sum equal to the amount
authorized by section five hundred thirty-two of this chapter which
shall apply to wagers placed at such facility. Such sums received by
facilities licensed in accordance with section one thousand nine of this
article shall be retained for the general purpose of the corporation.
Such sums received by such facilities licensed in accordance with
section one thousand seven of this article shall be distributed as
follows:
§ 146. The opening paragraph and paragraphs d and e of subdivision 3
and paragraph c of subdivision 4 of section 1015 of the racing, pari-mu-
tuel wagering and breeding law, the opening paragraph of subdivision 3
as amended and such section as renumbered by chapter 18 of the laws of
2008, paragraph d of subdivision 3 and paragraph c of subdivision 4 as
amended by section 22 of part F3 of chapter 62 of the laws of 2003, and
paragraph e of subdivision 3 as amended by section 10 of part BB of
chapter 60 of the laws of 2016, are amended to read as follows:
Any facility authorized to accept wagers on out-of-state tracks shall
distribute all sums deposited in any pari-mutuel pool to the holders of
any tickets therein provided such tickets are presented for payment
prior to April first of the year following the year of their purchase
less nineteen [per centum] PERCENT of total deposits in pools resulting
from regular bets, less twenty-one [per centum] PERCENT of total depos-
its of pools resulting from multiple bets, less twenty-seven [per
centum] PERCENT of total deposits of pools resulting from exotic bets,
less thirty-six [per centum] PERCENT of total deposits of pools result-
ing from super exotic bets plus the breaks as defined in section three
hundred eighteen of this chapter except that the retention rates and
breaks shall be as prescribed by another state or country if such wagers
are combined with those in the other state or country pursuant to
section nine hundred five of this chapter.
d. For wagers placed at an off-track betting facility in that portion
of the western region located with a thoroughbred special betting
district, but not included in a harness special betting district, one
and one-half [per centum] PERCENT of such wagers shall be paid to the
racing association located in such district provided such association is
neither accepting wagers nor simulcasting out-of-state harness races.
Any payments required by this subdivision shall reduce payments required
to be made to the regional licensed harness track under the provisions
of subparagraph three of paragraph b of this subdivision.
e. Any thoroughbred racing corporation or harness racing association
or corporation or off-track betting corporation authorized pursuant to
this section shall pay to the [gaming] commission as a regulatory fee,
which fee is hereby levied, six-tenths of one percent of all wagering
pools.
c. upon application of any facility licensed in accordance with
sections one thousand seven and one thousand nine of this article, the
[board] COMMISSION shall authorize the imposition of a sum equal to the
amount authorized by section five hundred thirty-two of this chapter
[which] THAT shall apply to wagers placed at such facility. Such sums
received by facilities licensed in accordance with section one thousand
nine of this article shall be retained for the general purpose of the
S. 7639 122
corporation. Such sums received by such facilities licensed in accord-
ance with section one thousand seven of this article shall be distrib-
uted as follows:
(1) fifty percent shall be used exclusively for purses awarded in
races conducted by such licensed facility; and
(2) fifty percent shall be retained by such licensed facility for its
general purposes.
§ 147. The opening paragraph, subparagraphs 1 and 2, item (ii) of
clause (E) of subparagraph 5 and item (ii) of clause (F) of subparagraph
6 of paragraph b, subparagraph 1 of paragraph c and the opening para-
graph of subparagraph 2 of paragraph d of subdivision 1 of section 1016
of the racing, pari-mutuel wagering and breeding law, as amended by
chapter 18 of the laws of 2008 and clause (B) of subparagraph 2 of para-
graph b of subdivision 1 as amended by section 11 of part BB of chapter
60 of the laws of 2016, are amended to read as follows:
Any facility authorized to accept wagers on out-of-state tracks shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
prior to April first of the year following the year of their purchase
less eighteen [per centum] PERCENT of the total deposits in pools
resulting from regular bets, less twenty-one [per centum] PERCENT of the
total deposits in pools resulting from multiple bets, less twenty-six
[per centum] PERCENT of the total deposits in pools resulting from exot-
ic bets, and less twenty-seven [per centum] PERCENT of the total depos-
its in pools resulting from super exotic bets, plus the breaks as
defined in section two hundred thirty-six of this chapter except that
the retention rates and breaks shall be as prescribed by another state
or country if such wagers are combined with those in the other state or
country pursuant to section nine hundred five of this chapter.
(1) Of the sums so retained, the applicable tax rates shall be as
governed by clauses (A) and (B) of subparagraphs three, four, five and
six of this paragraph plus fifty percent of the breaks; provided, howev-
er, fifty percent of the breaks accruing from off-track betting corpo-
rations licensed in accordance with section one thousand eight of this
article and from simulcast theaters licensed in accordance with section
one thousand nine of this article, shall be paid to the agriculture and
New York State horse breeding and development fund and to the thorough-
bred breeding and development fund, the total of such payments to be
apportioned fifty [per centum] PERCENT to each such fund.
(2) (A) Of the sums so retained, one-half of one [per centum] PERCENT
of all wagers shall be paid to the New York State thoroughbred breeding
and development fund, except that of the sums so retained on such wagers
at licensed harness tracks, one-half of one [per centum] PERCENT shall
be paid to the agricultural and New York State horse breeding and devel-
opment fund.
(B) Any harness racing or association or corporation or thoroughbred
racing corporation authorized pursuant to this section shall pay to the
[gaming] commission as a regulatory fee, which fee is hereby levied,
six-tenths of one percent of the total daily pari-mutuel pools.
(ii) Such licensed regional harness track shall receive one and one-
half [per centum] PERCENT on total regional handle on races conducted at
out-of-state or out-of-country thoroughbred tracks.
(ii) Such licensed regional harness track shall receive one and one-
half [per centum] PERCENT on total regional handle on races conducted at
out-of-state or out-of-country thoroughbred tracks.
S. 7639 123
(1) All wagers authorized by this section shall be combined so as to
produce common pari-mutuel betting pools, which shall be combined with
the sending track, for the calculation of odds and the determination of
payouts from such pools, which payouts shall be made pursuant to the
rules of the [board] COMMISSION. Every location authorized to accept
wagers or display simulcasting pursuant to this section shall be subject
to all appropriate provisions of this chapter.
upon application of any facility licensed in accordance with sections
one thousand seven and one thousand nine of this article, the [board]
COMMISSION shall authorize the imposition of a sum equal to the amount
authorized by section five hundred thirty-two of this chapter [which
shall apply] THAT APPLIES to wagers placed at such facility. Such sums
received by facilities licensed in accordance with section one thousand
nine of this article shall be retained for the general purpose of the
corporation. Such sums received by such facilities licensed in accord-
ance with section one thousand seven of this article shall be distrib-
uted as follows:
§ 148. Paragraph a of subdivision 2 of section 1017 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 174 of the
laws of 2013, is amended to read as follows:
a. Maintenance of effort. Any off-track betting corporation [which]
THAT engages in accepting wagers on the simulcasts of thoroughbred races
from out-of-state or out-of-country as permitted under subdivision one
of this section shall submit to the commission, for its approval, a
schedule of payments to be made in any year or portion thereof, that
such off-track corporation engages in nighttime thoroughbred simulcast-
ing. In order to be approved by the commission, the payment schedule
shall be identical to the actual payments and distributions of such
payments to tracks and purses made by such off-track corporation pursu-
ant to the provisions of section one thousand fifteen of this article
during the year two thousand two, as derived from out-of-state harness
races displayed after 6:00 P.M. If approved by the commission, such
scheduled payments shall be made from revenues derived from any simul-
casting conducted pursuant to this section and section one thousand
fifteen of this article.
§ 149. Subdivision 2 of section 1018 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 18 of the laws of 2008 and
paragraph b of subdivision 2 as amended by section 12 of part BB of
chapter 60 of the laws of 2016, is amended to read as follows:
2. a. Of the sums so retained, one-half of one [per centum] PERCENT of
all wagers shall be paid to the New York state thoroughbred breeding and
development fund, except that of the sums so retained on such wagers at
licensed harness tracks, one-half of one [per centum] PERCENT shall be
paid to the agriculture and New York state horse breeding and develop-
ment fund.
b. Any thoroughbred racing corporation or harness racing association
or corporation or off-track betting corporation shall pay to the
[gaming] commission as a regulatory fee, which fee is hereby levied,
six-tenths of one percent of all wagering pools.
§ 150. Subdivision c of section 1101 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 323 of the laws of 2001, is
amended to read as follows:
c. to authorize the [New York state racing and wagering board] COMMIS-
SION to participate in this compact;
S. 7639 124
§ 151. Subdivision b of section 1106 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 323 of the laws of 2001, is
amended to read as follows:
b. The [chairman] CHAIR of the [racing and wagering board] STATE
GAMING COMMISSION shall designate the official, and his or her alter-
nate, to represent New York state in the compact committee.
§ 152. Paragraphs 1 and 3 of subdivision c of section 1111 of the
racing, pari-mutuel wagering and breeding law, as added by chapter 323
of the laws of 2001, are amended to read as follows:
(1) to charge a fee for the use of a compact license within that party
state, for which the [racing and wagering board] COMMISSION shall charge
the fee, for each license category, set forth in sections two hundred
thirteen and three hundred nine of this chapter;
(3) to apply its own standards for licensure or renewal of state
applicants who do not meet the licensure requirements of the compact
committee, or who are within a category of participants in live racing
[which] THAT the compact committee does not license; and
§ 153. Section 1112 of the racing, pari-mutuel wagering and breeding
law, as added by chapter 323 of the laws of 2001, is amended to read as
follows:
§ 1112. Fingerprints and criminal history. In order to determine the
suitability to be licensed of an applicant or licensee, the [racing and
wagering board] COMMISSION shall require a full set of fingerprints be
furnished to the [board] COMMISSION to enable a criminal background
investigation to be conducted. For any person who intends to partic-
ipate in racing in New York state, the [board] COMMISSION shall submit
such fingerprints to the division of criminal justice services, and the
division of criminal justice services is authorized to submit such fing-
erprints to the federal bureau of investigation, in accordance with the
rules or regulations promulgated by such entities, to obtain relevant
criminal history record information, if any, concerning such applicant
or licensee. The [board] COMMISSION shall require the applicant or
licensee to pay the cost of the criminal history investigation.
§ 154. The opening paragraph of section 1306 of the racing, pari-mutu-
el wagering and breeding law, as added by chapter 174 of the laws of
2013, is amended to read as follows:
The New York state [resort] gaming facility location board shall
select, following a competitive process and subject to the restrictions
of this article, no more than four entities to apply to the commission
for gaming facility licenses. In exercising its authority, the board
shall have all powers necessary or convenient to fully carry out and
effectuate its purposes including, but not limited to, the following
powers. The board shall:
§ 155. Paragraph (a) of subdivision 1 of section 1330-a of the racing,
pari-mutuel wagering and breeding law, as added by chapter 174 of the
laws of 2013, is amended to read as follows:
(a) In addition to any other registration or reporting required by
law, any entity licensed under section sixteen hundred seventeen-a of
the tax law, or [which] THAT possesses a pari-mutuel wagering license or
franchise awarded pursuant to article two or three of this chapter that
makes an expenditure of more than one thousand dollars for any written,
typed, or other printed communication, or any internet-based communi-
cation, or any television or radio communication, or any automated or
paid telephone communications, in support or opposition to any referen-
dum authorized by the state legislature following second passage of a
concurrent resolution to amend the state constitution to permit or
S. 7639 125
authorize casino gaming to a general public audience, shall file any
reports required pursuant to the election law simultaneously with the
gaming commission and shall provide such additional reports as required
by the [gaming] commission. This requirement shall apply irrespective of
whether such entity makes such expenditure directly or indirectly via
one or more persons. The [gaming] commission shall promulgate regu-
lations to implement the requirements of this section.
§ 156. Paragraph (b) of subdivision 1 of section 1341 of the racing,
pari-mutuel wagering and breeding law, as added by chapter 174 of the
laws of 2013, is amended to read as follows:
(b) Agreements between a gaming facility licensee and a junket enter-
prise or junket representative licensed, qualified or registered in
accordance with the provisions OF this article and the regulations of
the commission [which] THAT provide for the compensation of the junket
enterprise or junket representative by the gaming facility licensee
based upon the actual gaming activities of a patron procured or referred
by the junket enterprise or junket representative shall be lawful if
filed with the commission prior to the conduct of any junket that is
governed by the agreement.
§ 157. Subdivision 2 of section 1345 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
2. For the purposes OF this section, any gaming activity in a licensed
gaming facility [which] THAT results in a prohibited person obtaining
any money or thing of value from, or being owed any money or thing of
value by, the gaming facility shall be considered, solely for purposes
of this section, to be a fully executed gambling transaction.
§ 158. Subdivision 6 of section 1346 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
6. If otherwise applicable, any gaming facility entering into a
contract for a gaming facility [capitol] CAPITAL project shall be deemed
to be a state agency, and such contract shall be deemed to be a state
contract, for purposes of article fifteen-A of the executive law and
section two hundred twenty-two of the labor law.
§ 159. Subdivision 1 of section 1355 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
1. If an applicant who possesses a pari-mutuel wagering franchise or
license awarded pursuant to article two or three of this chapter, or who
possessed in two thousand thirteen a franchise or a license awarded
pursuant to article two or three of this chapter or is an [articulated]
AFFILIATED entity [or] OF such applicant, is issued a gaming facility
license pursuant to this article, the licensee shall:
(a) Maintain payments made from video lottery gaming operations to the
relevant horsemen and breeders organizations at the same dollar level
realized in two thousand thirteen, to be adjusted annually pursuant to
changes in the consumer price index for all urban consumers, as
published annually by the United States department of labor bureau of
labor statistics;
(b) All [racetracks] RACETRACK locations awarded a gaming facility
license shall maintain racing activity and race dates pursuant to arti-
cles two and three of this chapter.
§ 160. Subdivision 2 of section 195-q of the general municipal law, as
added by chapter 309 of the laws of 1996, is amended to read as follows:
S. 7639 126
2. The [racing and wagering board] STATE GAMING COMMISSION shall
submit to the director of the division of the budget an annual plan that
details the amount of money the [racing and wagering board] STATE GAMING
COMMISSION deems necessary to maintain operations, compliance and
enforcement of the provisions of this article and the collection of the
license fee authorized by this section. Contingent upon the approval of
the director of the division of the budget, the [racing and wagering
board] STATE GAMING COMMISSION shall pay into an account, to be known as
the bell jar collection account, under the joint custody of the comp-
troller and the [board] STATE GAMING COMMISSION, the total amount of
license fees collected pursuant to this section. With the approval of
the director of the division of the budget, monies to be utilized to
maintain the operations necessary to enforce the provisions of this
article and the collection of the license fee imposed by this section
shall be paid out of such account on the audit and warrant of the comp-
troller on vouchers certified or approved by the director of the divi-
sion of the budget or his OR HER duly designated official. Those monies
that are not utilized to maintain operations necessary to enforce the
provisions of this article and the collection of the license fee author-
ized by this section shall be paid out of such amount on the audit and
warrant of the state comptroller and shall be credited to the general
fund.
§ 161. Paragraph (c) of subdivision 6 of section 476 of the general
municipal law, as amended by chapter 190 of the laws of 1997, is amended
to read as follows:
(c) Those which shall initiate, perform or foster the provisions of
services to veterans by encouraging the gathering of such veterans and
shall enable or further the erection or maintenance of facilities for
use by such veterans which shall be used primarily for charitable or
patriotic purposes, or those purposes which shall be authorized by a
bona fide organization of veterans, provided however that such proceeds
are disbursed in accordance with the rules and regulations of the
[racing and wagering board] STATE GAMING COMMISSION.
§ 162. Subdivision 10 of section 854 of the general municipal law, as
added by chapter 267 of the laws of 1977, is amended to read as follows:
(10) "Horse racing facility"--shall mean any facility for the use of
the general public for purpose of conducting pari-mutuel wagering,
licensed by the state [racing and wagering board] GAMING COMMISSION, as
of January first, nineteen hundred seventy-seven, except non-profit
racing associations, including buildings, structures, machinery, equip-
ments, facilities and appurtenances thereto, the construction, recon-
struction, acquisition and/or improvement of which shall have been
approved by the state [racing and wagering board] GAMING COMMISSION, and
[which] THAT the agency may deem necessary, useful or desirable in
connection with the construction, improvement or operation of such
racing facility.
§ 163. Subdivision 4-a of section 100 of the alcoholic beverage
control law, as added by chapter 762 of the laws of 1941, is amended to
read as follows:
4-a. At race meetings, authorized by the state [racing] GAMING commis-
sion, notwithstanding any inconsistent provision of law, additional
bars, counters or contrivances where alcoholic beverages shall be sold
at retail for consumption on the premises may be permitted by the liquor
authority, upon payment to it of a fee equivalent to the amount of the
annual or summer license fee paid by the licensee for each such addi-
S. 7639 127
tional bar, counter or contrivance so permitted in addition to the
amount of the annual or summer license fee paid by the licensee.
§ 164. Subdivision a of section 20-339 of the administrative code of
the city of New York is amended to read as follows:
a. "Control commission" or "commission" or "board" shall mean the
state [racing and wagering board] GAMING COMMISSION.
§ 165. Subdivision 1 of section 20-435 of the administrative code of
the city of New York is amended to read as follows:
1. "Board" shall mean New York state [racing and wagering board]
GAMING COMMISSION.
§ 166. This act shall take effect immediately; provided, however, that
the amendments to section 212 of the racing, pari-mutuel wagering and
breeding law made by section eleven of this act and section 1013 of the
racing, pari-mutuel wagering and breeding law made by section one
hundred forty-four of this act shall not affect the repeal of such
sections and shall be deemed repealed therewith; and provided, further
that the amendments to paragraph b of subdivision 3 of section 527 of
the racing, pari-mutuel wagering and breeding law made by section one
hundred five of this act shall be subject to the expiration and rever-
sion of such paragraph pursuant to section 32 of chapter 281 of the laws
of 1994, as amended, when upon such date the provisions of section one
hundred five-a of this act shall take effect.