BILL NUMBER: S5550

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to prohibiting off-track betting corporation vehicles from
being used as take-home vehicles

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation amends the racing, pari-mutuel wagering and breeding
law by prohibiting take-home vehicles for any off-track betting corpo-
ration board member, officer, or employee of such corporation, any
contractor, subcontractor, consultant, or other agency of such corpo-
ration, or any spouse, child, sibling or parent residing in the princi-
pal place of abode of any such foregoing persons. In addition, the
legislation requires all motor vehicles leased, owned or otherwise
controlled by such corporation to be returned to corporation property
when not being used for official business.

 
SUMMARY OF PROVISIONS:
              

Section one adds a new section 503-c to the racing, pari-mutuel, wager-
ing and breeding law to prohibit take-home vehicles for any off-track
betting corporation board member, officer, or employee of such corpo-
ration, any contractor, subcontractor, consultant, or other agency of
such corporation, or any spouse, child, sibling or parent residing in
the principal place, of abode of any such foregoing persons. In addi-
tion, this section requires all motor vehicles leased, owned or other-
wise controlled by such corporation to be returned to corporation prop-
erty when not being used for official business. Provided, however that
regional OTBs shall be allowed to issue take-home vehicles provided
there is a written policy that complies with OSC regulations, is
approved by the gaming commission, and related records are subject to
random audits by the gaming commission.

Section two establishes the effective date

 
JUSTIFICATION:

On September 23, 2021, the New York Office of the State Comptroller
(OSC) released an audit that uncovered the Chief Executive Officer of
Western New York Off-Track Betting Corp (OTB) did not track his personal
use of his official vehicle and keep mileage logs, as all employees were
required to do. He also did not pay the annual fee of $260 paid by other
employees. He later reimbursed the OTB $3,484 after an internal auditor
found that he was not following the OTB's policy.

The OSC's key recommendations included:

* Ensure all employees assigned take-home vehicles complete and file
accurate weekly mileage logs.

* Require employees to reimburse the OTB for personal use in a timely
manner.

This legislation goes beyond the OSC's key recommendations by prohibit-
ing take-home vehicles for OTB associates unless there is a written
policy and subject to random audits. Take-home vehicles are not neces-
sary for OTB executives, board members or other associates because these
vehicles can be returned to OTB property after they are used for offi-
cial, business-related purposes.

 
PRIOR LEGISLATIVE HISTORY:

S.7854A Passed Senate

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law