§ 206. Franchise for running races and steeplechase meetings. 1. The
franchised corporation referred to in this chapter shall be a
not-for-profit corporation to be known as The New York Racing
Association, Inc. To the extent that the provisions of the
not-for-profit corporation law do not conflict with the provisions of
this article, the not-for-profit corporation law shall apply to the
franchised corporation and the franchised corporation shall be a type C
corporation pursuant to the not-for-profit corporation law. If an
applicable provision of this article relates to a matter embraced in a
provision of the not-for-profit corporation law but is not in conflict
therewith, both provisions shall apply. The franchised corporation shall
perform its functions under a franchise agreement which, notwithstanding
the provisions of section one hundred twelve of the state finance law,
shall not be subject to the approval required by such section, and such
other agreements as may be necessary and appropriate and shall exercise
its powers through a board of directors established under section two
hundred seven of this article. The franchise confers the right and
responsibility to manage and operate all functions at the franchise
racetracks including but not limited to and subject to appropriate
racing laws and regulations the hiring and management of racing
secretaries, stewards, race officials, backstretch employees and other
equine and racing related functions, establishing the purses, the stakes
program and owner's relations, maintenance of the franchise racetracks
and associated facilities, the selection of vendors for food, beverage
and other concessions and such other activities approved by the
franchise oversight board. The franchised corporation, in its
discretion, may permit utilization of the state racing franchise lands
for business purposes unrelated to racing, provided however that upon
written notice from the franchise oversight board with respect to any
such activity, the franchised corporation shall cease such utilization
within thirty days in order to allow the franchise oversight board
approved development or alternative uses approved by the franchise
oversight board. All franchise rights or interests in assets of the
state racing franchise including but not limited to leasehold interests
shall be limited to the term of the franchise. Upon expiration,
termination or ending of the franchise by any other means provided by
law, all franchise rights or interest granted to or held by the
franchised corporation shall cease and revert to the state.

Notwithstanding any provisions of law to the contrary the franchised
corporation shall not conduct, manage or otherwise operate video lottery
gaming activities on the lands of the state racing franchise.

2. The franchised corporation shall, upon acceptance of the franchise,
franchise agreements and all enumerated conditions, be granted a
franchise for a period of not more than twenty-five years, ending no
later than December thirty-first, two thousand thirty-three.

3. Upon acceptance of the franchise, the franchisee's corporate
duration shall be made coterminous with the expiration, revocation or
relinquishment of such franchise. Such length of duration shall be
deemed to be incorporated within and made part of the certificate of
incorporation of the franchised corporation and no amendment to such
certificate to incorporate any such provision shall be necessary to give
effect to any such provision and that any provision contained within
such certificate inconsistent in any manner with the provisions
contained within this section shall be null and void and cease to be of
effect and shall be superseded by the provisions of this section. The
dissolution provisions of articles ten and eleven of the not-for-profit
corporation law shall apply upon the expiration, revocation or
relinquishment of such franchise.

4. The franchised corporation shall not commence operation until
by-laws and a corporate governance code of conduct are adopted by its
board of directors. Such by-laws and code shall ensure the franchised
corporation is operated in an efficient and transparent manner, with the
highest degree of integrity and is fully accountable to the people of
the state of New York.

5. The franchised corporation shall comply with all applicable laws
and regulations and retain an independent business integrity counsel,
who, among other things, will act as an independent source to help
ensure the integrity of the franchised corporation, its officers and
employees, and its operations.

6. The franchised corporation shall honor and be bound by all
collective bargaining agreements to which the previous franchise holder
was a party for their remaining term.

The franchised corporation shall, upon the request of an off-track
betting corporation, purchase simulcasting rights jointly with the
off-track betting corporation so that the off-track betting corporation
pays the same price for the purchased simulcasting rights that the
franchised corporation pays. To the extent permitted by law, the
franchised corporation shall also share simulcasting pricing information
in the market with off-track betting corporations;

7. The franchised corporation shall conduct public meetings in
cooperation with local advisory boards established pursuant to section
two hundred twelve of this article within one hundred eighty days
following the effective date of this section on or near the racetrack
facilities of Aqueduct, Belmont and Saratoga. Thereafter, public
meetings shall be held no less than twice yearly in cooperation with the
local advisory boards established pursuant to section two hundred twelve
of the racing, pari-mutuel wagering and breeding law, in order to
solicit the concerns of the community surrounding the respective racing
operations.