§ 107. Conflicts prohibited. 1. No person shall be appointed to or
employed by the commission if, during the period commencing three years
prior to appointment or employment, such person held any direct or
indirect interest in, or employment by, any corporation, association or
person engaged in gaming activity within the state. Prior to appointment
or employment, each member, officer or employee of the commission shall
swear or affirm that he or she possesses no interest in any corporation
or association holding a franchise, license, registration, certificate
or permit issued by the commission. Thereafter, no member or officer of
the commission shall hold any direct interest in or be employed by any
applicant for or by any corporation, association or person holding a
license, registration, franchise, certificate or permit issued by the
commission for a period of four years commencing on the date his or her
membership with the commission terminates. Further, no employee of the
commission may acquire any direct or indirect interest in, or accept
employment with, any applicant for or any person holding a license,
registration, franchise, certificate or permit issued by the commission
for a period of two years commencing at the termination of employment
with the commission. The commission may, by resolution adopted by
unanimous vote at a properly noticed public meeting, waive for good
cause the pre-employment restrictions enumerated in this subdivision for
a prospective employee whose duties and responsibilities are primarily
on racetrack grounds. Such adopted resolution shall state the reasons
for waiving the pre-employment conditions for the prospective employee,
including a finding that there were no other qualified candidates with
the desired experience for the specified position.

2. No member, officer, official or employee of the commission shall
participate as an owner of a horse or otherwise as a contestant in any
horse race at a race meeting which is under the jurisdiction or
supervision of the commission, or have any pecuniary interest, direct or
indirect, in the purse, prize, premium or stake contested for at any
such horse race or in the operations of any licensee of the commission
or state racing franchisee. Participation as an owner of a horse or
otherwise as a contestant in any such horse race by a member, officer,
other official or employee of the commission in violation of this
prohibition shall terminate the term of his or her office as a member,
or his or her services as an officer or official or employee of the
commission.

3. No member, officer or employee of the commission shall wager upon
gaming or horse racing activity conducted within the state.

4. No individual employed by an off-track betting corporation or race
track licensed pursuant to this chapter as a pari-mutuel clerk, cashier
or seller shall be permitted to wager upon gaming activity during any
period of a day on which such person is employed in such capacity.

5. No public officer or party officer shall hold any racing or video
lottery gaming license from the commission.

6. The following public employees are prohibited from holding any
license from the commission:

(a) an employee of the commission; any director or employee of a
regional off-track betting corporation employed in a management,
confidential or supervisory capacity for purposes of their position with
off-track betting; or

(b) an employee of the state legislature; provided, however, that an
employee of the state legislature whose duties in such position do not
relate to gaming activities shall not be subject to the prohibitions of
this section if he or she held a license from the former state racing
and wagering board while employed by the state legislature prior to July
first, nineteen hundred eighty; or

(c) an employee of any local legislative body whose duties involve
gaming activities; or

(d) an employee of any state or local board, agency, authority or
other state or local governmental body, the duties of which relate to
gaming activities or the taxation thereof.

7. No public officer, public employee or party officer shall:

(a) own or hold, directly or indirectly, any proprietary interest,
stock or obligation of any firm, association or corporation (i) which is
licensed by the commission to conduct video lottery gaming or horse
racing activities, or (ii) which conducts its occupation, trade, or
business at a racetrack at which pari-mutuel race meets are conducted or
facility where video lottery gaming activity is conducted whether or not
a license is required, or (iii) which owns or leases to any enfranchised
or licensed association or corporation a racetrack at which pari-mutuel
racing is conducted or facility where video lottery gaming activity is
conducted, or (iv) which participates in the management of any franchise
holder or licensee conducting video lottery gaming or horse racing
activities; or

(b) hold any office or employment with any firm, association or
corporation specified in paragraph (a) of this subdivision, except as
provided in subdivision eight of this section; or

(c) sell, or be a member of a firm, or own ten per centum or more of
the stock of any corporation, which sells any goods or services to any
firm, association or corporation specified in paragraph (a) of this
subdivision. For purposes of this subdivision, a direct or indirect
interest shall not include an interest in a mutual fund or any other
diversified investments over which the recipient does not know the
identity of the primary source of income.

8. The provisions of paragraph (b) of subdivision seven of this
section shall not apply to a public employee other than an employee of
the commission, a police officer or a peace officer employed by a
sheriff's office, district attorney's office or other state or local law
enforcement agency, or those employees classified as management
confidential employees pursuant to section two hundred fourteen of the
civil service law who are employed by a state or local law enforcement
agency or regional off-track betting corporation; provided, however,
that employment of employees of a political subdivision may be
prohibited by ordinance, resolution or local law adopted by the local
legislative body or other governing board of such political subdivision.

9. The commission shall have the power to refuse to grant or to revoke
or suspend a license of any person, association or corporation that aids
or knowingly permits or conspires to permit any public officer, public
employee or party officer to acquire or retain any interest prohibited
by this section and shall have the power to exclude from the grounds of
any racing association any such person, association or corporation.

10. Notwithstanding any other provision of law, and in addition to any
other cause of removal provided by law, an intentional violation of this
section shall be cause for removal from public office, public employment
or party office. In any such case, such public officer, public employee
or party officer violating this section shall be removed from office by
the appropriate authority having the power of removal or at the suit of
the attorney general. Further, such public officer, public employee or
party officer shall be liable for a civil penalty of not more than ten
thousand dollars.