§ 521. Approval of plans of operation; amendments. In order to
accomplish the objectives of this article, the commission shall have the
power, subject to the provisions of this article but without limiting
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 the commission may grant such approval, the commission must
review and approve a feasibility study submitted by such corporation,
including but not limited to the following subjects:

a. 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 potential market;

c. the estimated costs of operation;

d. the probable types of wagering and number of opportunities required
for successful operation; and

e. the probable impact of the proposed operation upon on-track
attendance and pari-mutuel betting within the region. The commission
may, within the time provided for approval, request additional
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 organizational structure of the corporation including the
approximate number and compensation of employees;

b. a narrative description of the system;

c. the types and approximate cost of data processing, communication
and transmission facilities that will be used, including back-up
systems;

d. security measures;

e. the type and number of betting opportunities to be offered;

f. the race tracks and races for which bets will be taken;

g. the maximum and minimum number of retail outlets or betting offices
to be established;

h. the proposed system of accounts; and

i. the amount and proposed sources of financing.

3. Within ninety days of receipt of the feasibility study and plan,
the commission shall issue an order approving the plan, approving it
with modifications or denying approval and stating its reasons therefor.
Within such period the commission may request additional information or
suggest amendments. If the 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 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 commission. The corporation shall have
the right to be heard concerning any amendment to the plan proposed
after implementation and the 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 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
corporation in effect on July first, nineteen hundred seventy-three,
shall be deemed approved by the commission, but shall thereafter be
subject to the general jurisdiction of the 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
commission, until the commission 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 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 commission until
such time as the harness track located within the Capital District and
the city of Schenectady mutually agree on the provision of appropriate
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
county 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 commission 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 percent of the net revenues received
by such county obtained by dividing the bets originating 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 commission and
the county of Schenectady has enacted enabling legislation to join such
corporations and such county's participation 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 participate in the formation of such
corporation or subsequently to participate 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 commission may authorize and approve:

a. 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 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 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 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 New York city off-track betting corporation, and

(iii) the commission shall submit reports to the governor and the
legislature evaluating the results of such experiment on the
compatibility 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 regarding the future authorization of the telecast of
live audio and visual signals into off-track betting facilities; and

b. one other application submitted by an off-track betting
corporation, other than 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 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
chapter, 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 commission shall submit reports to the governor and the
legislature evaluating the results of such experiment on the
compatibility 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
facilities.

c. 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 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 commission may require. Such data 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
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 commission of at least thirty days in
advance of such requested change.